H.R. 14 (112th): MAP-21

HR 14 IH

112th CONGRESS

2d Session

H. R. 14

To reauthorize Federal-aid highway and highway safety construction programs, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 21, 2012

Mr. BISHOP of New York (for himself, Mr. RAHALL, Mr. DEFAZIO, Ms. BROWN of Florida, Mr. ACKERMAN, Mr. RANGEL, Mr. FILNER, Mr. SIRES, Ms. RICHARDSON, Mr. CUMMINGS, Ms. NORTON, Mr. RUPPERSBERGER, Mr. LARSEN of Washington, Mr. WELCH, Mr. HOLDEN, Mrs. NAPOLITANO, Ms. HIRONO, Mr. HOLT, Mr. VAN HOLLEN, Ms. EDWARDS, Mr. BOSWELL, Ms. HAHN, Mr. THOMPSON of California, Mr. ISRAEL, Mr. HIGGINS, Mr. CICILLINE, Ms. WILSON of Florida, Mr. RICHMOND, Ms. MOORE, Mr. MORAN, Mr. BLUMENAUER, Ms. SPEIER, Mr. OWENS, Mr. JACKSON of Illinois, Mr. DOYLE, Ms. LINDA T. SANCHEZ of California, Mr. LEWIS of Georgia, Mr. LARSON of Connecticut, Mr. BERMAN, Mr. CONNOLLY of Virginia, Mr. LIPINSKI, Ms. TSONGAS, Mr. MICHAUD, Mr. PRICE of North Carolina, Mr. LANGEVIN, Mr. ALTMIRE, Mr. CLAY, Mr. MCNERNEY, Mr. WALZ of Minnesota, Mr. HONDA, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. CROWLEY, Mrs. LOWEY, Ms. DEGETTE, Mr. TOWNS, Mr. COURTNEY, Mr. QUIGLEY, Mr. STARK, Mr. CARNAHAN, Mr. SMITH of Washington, Ms. MCCOLLUM, Ms. SLAUGHTER, Ms. ZOE LOFGREN of California, Mr. THOMPSON of Mississippi, Mr. HOYER, Mr. LUJAN, Ms. ROYBAL-ALLARD, Mr. MCGOVERN, Mr. SHERMAN, Ms. SCHWARTZ, Ms. CLARKE of New York, Mr. CLARKE of Michigan, Mr. ANDREWS, Mr. COSTELLO, Ms. VELAZQUEZ, Mr. CONYERS, Mr. TONKO, Mr. GARAMENDI, Mr. SCOTT of Virginia, Mr. FALEOMAVAEGA, Mr. COSTA, Ms. DELAURO, Mr. COHEN, Mr. LYNCH, Mr. RUSH, Ms. PINGREE of Maine, Mr. WAXMAN, Mr. SHULER, Ms. WASSERMAN SCHULTZ, Ms. CHU, Mr. CHANDLER, Mr. CRITZ, and Mr. GEORGE MILLER of California) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Ways and Means, Natural Resources, Energy and Commerce, Agriculture, Science, Space, and Technology, the Budget, Oversight and Government Reform, Financial Services, Education and the Workforce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

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A BILL

To reauthorize Federal-aid highway and highway safety construction programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Moving Ahead for Progress in the 21st Century Act’ or the ‘MAP-21’.

(b) Divisions- This Act is organized into 8 divisions as follows:

(1) Division A-Federal-aid Highways and Highway Safety Construction Programs.

(2) Division B-Public Transportation.

(3) Division C-Transportation Safety and Surface Transportation Policy.

(4) Division D-Finance.

(5) Division E-Research and Education.

(6) Division F-Miscellaneous.

(7) Division G-Air Transportation.

(8) Division H-Budgetary Effects.

(c) Table of Contents- The table of contents for this Act is as follows:

Sec. 1. Short title; organization of Act into divisions; table of contents.

Sec. 2. Definitions.

DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION PROGRAMS

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Authorizations and Programs

Sec. 1101. Authorization of appropriations.

Sec. 1102. Obligation ceiling.

Sec. 1103. Definitions.

Sec. 1104. National highway system.

Sec. 1105. Apportionment.

Sec. 1106. National highway performance program.

Sec. 1107. Emergency relief.

Sec. 1108. Transportation mobility program.

Sec. 1109. Workforce development.

Sec. 1110. Highway use tax evasion projects.

Sec. 1111. National bridge and tunnel inventory and inspection standards.

Sec. 1112. Highway safety improvement program.

Sec. 1113. Congestion mitigation and air quality improvement program.

Sec. 1114. Territorial and Puerto Rico highway program.

Sec. 1115. National freight program.

Sec. 1116. Federal lands and tribal transportation programs.

Sec. 1117. Alaska Highway.

Sec. 1118. Projects of national and regional significance.

Sec. 1119. Construction of ferry boats and ferry terminal facilities.

Subtitle B--Performance Management

Sec. 1201. Metropolitan transportation planning.

Sec. 1202. Statewide and nonmetropolitan transportation planning.

Sec. 1203. National goals.

Subtitle C--Acceleration of Project Delivery

Sec. 1301. Project delivery initiative.

Sec. 1302. Clarified eligibility for early acquisition activities prior to completion of NEPA review.

Sec. 1303. Efficiencies in contracting.

Sec. 1304. Innovative project delivery methods.

Sec. 1305. Assistance to affected State and Federal agencies.

Sec. 1306. Application of categorical exclusions for multimodal projects.

Sec. 1307. State assumption of responsibilities for categorical exclusions.

Sec. 1308. Surface transportation project delivery program.

Sec. 1309. Categorical exclusion for projects within the right-of-way.

Sec. 1310. Programmatic agreements and additional categorical exclusions.

Sec. 1311. Accelerated decisionmaking in environmental reviews.

Sec. 1312. Memoranda of agency agreements for early coordination.

Sec. 1313. Accelerated decisionmaking.

Sec. 1314. Environmental procedures initiative.

Sec. 1315. Alternative relocation payment demonstration program.

Sec. 1316. Review of Federal project and program delivery.

Subtitle D--Highway Safety

Sec. 1401. Jason’s Law.

Sec. 1402. Open container requirements.

Sec. 1403. Minimum penalties for repeat offenders for driving while intoxicated or driving under the influence.

Sec. 1404. Adjustments to penalty provisions.

Sec. 1405. Highway worker safety.

Subtitle E--Miscellaneous

Sec. 1501. Program efficiencies.

Sec. 1502. Project approval and oversight.

Sec. 1503. Standards.

Sec. 1504. Construction.

Sec. 1505. Maintenance.

Sec. 1506. Federal share payable.

Sec. 1507. Transferability of Federal-aid highway funds.

Sec. 1508. Special permits during periods of national emergency.

Sec. 1509. Electric vehicle charging stations.

Sec. 1510. HOV facilities.

Sec. 1511. Construction equipment and vehicles.

Sec. 1512. Use of debris from demolished bridges and overpasses.

Sec. 1513. Extension of public transit vehicle exemption from axle weight restrictions.

Sec. 1514. Uniform Relocation Assistance Act amendments.

Sec. 1515. Use of youth service and conservation corps.

Sec. 1516. Consolidation of programs; repeal of obsolete provisions.

Sec. 1517. Rescissions.

Sec. 1518. State autonomy for culvert pipe selection.

Sec. 1519. Effective and significant performance measures.

Sec. 1520. Requirements for eligible bridge projects.

Sec. 1521. Idle reduction technology.

Sec. 1522. Report on Highway Trust Fund expenditures.

Sec. 1523. Evacuation routes.

Sec. 1524. Defense access road program enhancements to address transportation infrastructure in the vicinity of military installations.

Sec. 1525. Express lanes demonstration program.

Sec. 1526. Treatment of historic signs.

Sec. 1527. Consolidation of grants.

Sec. 1528. Buy America provisions.

Sec. 1529. Exemptions from requirements for certain farm vehicles.

Sec. 1530. Appalachian development highway system.

Sec. 1531. Denali Commission.

Sec. 1532. Updated corrosion control and prevention report.

Sec. 1533. Harbor Maintenance trust fund.

Sec. 1534. Enrichment technology and intellectual property.

Sec. 1535. Sense of Senate concerning expenditious completion of environmental reviews, approvals, licensing, and permit requirements.

Subtitle F--Gulf Coast Restoration

Sec. 1601. Short title.

Sec. 1602. Gulf Coast Restoration Trust Fund.

Sec. 1603. Gulf Coast natural resources restoration and economic recovery.

Sec. 1604. Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology Program.

Sec. 1605. Effect.

Subtitle G--Land and Water Conservation Fund

Sec. 1701. Land and water conservation fund.

Subtitle H--Offsets

Sec. 1801. Delay in application of worldwide interest.

TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION

Sec. 2001. Short title.

Sec. 2002. Transportation Infrastructure Finance and Innovation Act amendments.

Sec. 2003. State infrastructure banks.

TITLE III--HIGHWAY SPENDING CONTROLS

Sec. 3001. Highway spending controls.

DIVISION B--PUBLIC TRANSPORTATION

Sec. 20001. Short title.

Sec. 20002. Repeals.

Sec. 20003. Policies, purposes, and goals.

Sec. 20004. Definitions.

Sec. 20005. Metropolitan transportation planning.

Sec. 20006. Statewide and nonmetropolitan transportation planning.

Sec. 20007. Public Transportation Emergency Relief Program.

Sec. 20008. Urbanized area formula grants.

Sec. 20009. Clean fuel grant program.

Sec. 20010. Fixed guideway capital investment grants.

Sec. 20011. Formula grants for the enhanced mobility of seniors and individuals with disabilities.

Sec. 20012. Formula grants for other than urbanized areas.

Sec. 20013. Research, development, demonstration, and deployment projects.

Sec. 20014. Technical assistance and standards development.

Sec. 20015. Bus testing facilities.

Sec. 20016. Public transportation workforce development and human resource programs.

Sec. 20017. General provisions.

Sec. 20018. Contract requirements.

Sec. 20019. Transit asset management.

Sec. 20020. Project management oversight.

Sec. 20021. Public transportation safety.

Sec. 20022. Alcohol and controlled substances testing.

Sec. 20023. Nondiscrimination.

Sec. 20024. Labor standards.

Sec. 20025. Administrative provisions.

Sec. 20026. National transit database.

Sec. 20027. Apportionment of appropriations for formula grants.

Sec. 20028. State of good repair grants.

Sec. 20029. Authorizations.

Sec. 20030. Apportionments based on growing States and high density States formula factors.

Sec. 20031. Technical and conforming amendments.

DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

TITLE I--MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012

Sec. 31001. Short title.

Sec. 31002. Definition.

Subtitle A--Highway Safety

Sec. 31101. Authorization of appropriations.

Sec. 31102. Highway safety programs.

Sec. 31103. Highway safety research and development.

Sec. 31104. National driver register.

Sec. 31105. Combined occupant protection grants.

Sec. 31106. State traffic safety information system improvements.

Sec. 31107. Impaired driving countermeasures.

Sec. 31108. Distracted driving grants.

Sec. 31109. High visibility enforcement program.

Sec. 31110. Motorcyclist safety.

Sec. 31111. Driver alcohol detection system for safety research.

Sec. 31112. State graduated driver licensing laws.

Sec. 31113. Agency accountability.

Sec. 31114. Emergency medical services.

Subtitle B--Enhanced Safety Authorities

Sec. 31201. Definition of motor vehicle equipment.

Sec. 31202. Permit reminder system for non-use of safety belts.

Sec. 31203. Civil penalties.

Sec. 31204. Motor vehicle safety research and development.

Sec. 31205. Odometer requirements.

Sec. 31206. Increased penalties and damages for odometer fraud.

Sec. 31207. Extend prohibitions on importing noncompliant vehicles and equipment to defective vehicles and equipment.

Sec. 31208. Financial responsibility requirements for importers.

Sec. 31209. Conditions on importation of vehicles and equipment.

Sec. 31210. Port inspections; samples for examination or testing.

Subtitle C--Transparency and Accountability

Sec. 31301. Improved National Highway Traffic Safety Administration vehicle safety database.

Sec. 31302. National Highway Traffic Safety Administration hotline for manufacturer, dealer, and mechanic personnel.

Sec. 31303. Consumer notice of software updates and other communications with dealers.

Sec. 31304. Public availability of early warning data.

Sec. 31305. Corporate responsibility for National Highway Traffic Safety Administration reports.

Sec. 31306. Passenger motor vehicle information program.

Sec. 31307. Promotion of vehicle defect reporting.

Sec. 31308. Whistleblower protections for motor vehicle manufacturers, part suppliers, and dealership employees.

Sec. 31309. Anti-revolving door.

Sec. 31310. Study of crash data collection.

Sec. 31311. Update means of providing notification; improving efficacy of recalls.

Sec. 31312. Expanding choices of remedy available to manufacturers of replacement equipment.

Sec. 31313. Recall obligations and bankruptcy of manufacturer.

Sec. 31314. Repeal of insurance reports and information provision.

Sec. 31315. Monroney sticker to permit additional safety rating categories.

Subtitle D--Vehicle Electronics and Safety Standards

Sec. 31401. National Highway Traffic Safety Administration electronics, software, and engineering expertise.

Sec. 31402. Vehicle stopping distance and brake override standard.

Sec. 31403. Pedal placement standard.

Sec. 31404. Electronic systems performance standard.

Sec. 31405. Pushbutton ignition systems standard.

Sec. 31406. Vehicle event data recorders.

Sec. 31407. Prohibition on electronic visual entertainment in driver’s view.

Sec. 31408. Commercial motor vehicle rollover prevention and crash mitigation.

Subtitle E--Child Safety Standards

Sec. 31501. Child safety seats.

Sec. 31502. Child restraint anchorage systems.

Sec. 31503. Rear seat belt reminders.

Sec. 31504. Unattended passenger reminders.

Sec. 31505. New deadline.

Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural Equipment

Sec. 31601. Rulemaking on visibility of agricultural equipment.

TITLE II--COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012

Sec. 32001. Short title.

Sec. 32002. References to title 49, United States Code.

Subtitle A--Commercial Motor Vehicle Registration

Sec. 32101. Registration of motor carriers.

Sec. 32102. Safety fitness of new operators.

Sec. 32103. Reincarnated carriers.

Sec. 32104. Financial responsibility requirements.

Sec. 32105. USDOT number registration requirement.

Sec. 32106. Registration fee system.

Sec. 32107. Registration update.

Sec. 32108. Increased penalties for operating without registration.

Sec. 32109. Revocation of registration for imminent hazard.

Sec. 32110. Revocation of registration and other penalties for failure to respond to subpoena.

Sec. 32111. Fleetwide out of service order for operating without required registration.

Sec. 32112. Motor carrier and officer patterns of safety violations.

Sec. 32113. Federal successor standard.

Subtitle B--Commercial Motor Vehicle Safety

Sec. 32201. Repeal of commercial jurisdiction exception for brokers of motor carriers of passengers.

Sec. 32202. Bus rentals and definition of employer.

Sec. 32203. Crashworthiness standards.

Sec. 32204. Canadian safety rating reciprocity.

Sec. 32205. State reporting of foreign commercial driver convictions.

Sec. 32206. Authority to disqualify foreign commercial drivers.

Sec. 32207. Revocation of foreign motor carrier operating authority for failure to pay civil penalties.

Sec. 32208. Rental truck accident study.

Subtitle C--Driver Safety

Sec. 32301. Electronic on-board recording devices.

Sec. 32302. Safety fitness.

Sec. 32303. Driver medical qualifications.

Sec. 32304. Commercial driver’s license notification system.

Sec. 32305. Commercial motor vehicle operator training.

Sec. 32306. Commercial driver’s license program.

Sec. 32307. Commercial driver’s license requirements.

Sec. 32308. Commercial motor vehicle driver information systems.

Sec. 32309. Disqualifications based on non-commercial motor vehicle operations.

Sec. 32310. Federal driver disqualifications.

Sec. 32311. Employer responsibilities.

Sec. 32312. Improving and expediting safety assessments in the commercial driver’s license application process for members and former members of the Armed Forces.

Subtitle D--Safe Roads Act of 2012

Sec. 32401. Short title.

Sec. 32402. National clearinghouse for controlled substance and alcohol test results of commercial motor vehicle operators.

Sec. 32403. Drug and alcohol violation sanctions.

Sec. 32404. Authorization of appropriations.

Subtitle E--Enforcement

Sec. 32501. Inspection demand and display of credentials.

Sec. 32502. Out of service penalty for denial of access to records.

Sec. 32503. Penalties for violation of operation out of service orders.

Sec. 32504. Minimum prohibition on operation for unfit carriers.

Sec. 32505. Minimum out of service penalties.

Sec. 32506. Impoundment and immobilization of commercial motor vehicles for imminent hazard.

Sec. 32507. Increased penalties for evasion of regulations.

Sec. 32508. Failure to pay civil penalty as a disqualifying offense.

Sec. 32509. Violations relating to commercial motor vehicle safety regulation and operators.

Sec. 32510. Emergency disqualification for imminent hazard.

Sec. 32511. Intrastate operations of interstate motor carriers.

Sec. 32512. Enforcement of safety laws and regulations.

Sec. 32513. Disclosure to State and local law enforcement agencies.

Sec. 32514. Grade crossing safety regulations.

Subtitle F--Compliance, Safety, Accountability

Sec. 32601. Compliance, safety, accountability.

Sec. 32602. Performance and registration information systems management program.

Sec. 32603. Commercial motor vehicle defined.

Sec. 32604. Driver safety fitness ratings.

Sec. 32605. Uniform electronic clearance for commercial motor vehicle inspections.

Sec. 32606. Authorization of appropriations.

Sec. 32607. High risk carrier reviews.

Sec. 32608. Data and technology grants.

Sec. 32609. Driver safety grants.

Sec. 32610. Commercial vehicle information systems and networks.

Subtitle G--Motorcoach Enhanced Safety Act of 2012

Sec. 32701. Short title.

Sec. 32702. Definitions.

Sec. 32703. Regulations for improved occupant protection, passenger evacuation, and crash avoidance.

Sec. 32704. Standards for improved fire safety.

Sec. 32705. Occupant protection, collision avoidance, fire causation, and fire extinguisher research and testing.

Sec. 32706. Motorcoach registration.

Sec. 32707. Improved oversight of motorcoach service providers.

Sec. 32708. Report on feasibility, benefits, and costs of establishing a system of certification of training programs.

Sec. 32709. Report on driver’s license requirements for 9- to 15-passenger vans.

Sec. 32710. Event data recorders.

Sec. 32711. Safety inspection program for commercial motor vehicles of passengers.

Sec. 32712. Distracted driving.

Sec. 32713. Regulations.

Subtitle H--Safe Highways and Infrastructure Preservation

Sec. 32801. Comprehensive truck size and weight limits study.

Sec. 32802. Compilation of existing State truck size and weight limit laws.

Subtitle I--Miscellaneous

PART I--Miscellaneous

Sec. 32911. Detention time study.

Sec. 32912. Prohibition of coercion.

Sec. 32913. Motor carrier safety advisory committee.

Sec. 32914. Waivers, exemptions, and pilot programs.

Sec. 32915. Registration requirements.

Sec. 32916. Additional motor carrier registration requirements.

Sec. 32917. Registration of freight forwarders and brokers.

Sec. 32918. Effective periods of registration.

Sec. 32919. Financial security of brokers and freight forwarders.

Sec. 32920. Unlawful brokerage activities.

PART II--Household Goods Transportation

Sec. 32921. Additional registration requirements for household goods motor carriers.

Sec. 32922. Failure to give up possession of household goods.

Sec. 32923. Settlement authority.

Sec. 32924. Household goods transportation assistance program.

Sec. 32925. Household goods consumer education program.

PART III--Technical Amendments

Sec. 32931. Update of obsolete text.

Sec. 32932. Correction of interstate commerce commission references.

Sec. 32933. Technical and conforming amendments.

TITLE III--SURFACE TRANSPORTATION AND FREIGHT POLICY ACT OF 2012

Sec. 33001. Short title.

Sec. 33002. Establishment of a national surface transportation and freight policy.

Sec. 33003. Surface transportation and freight strategic plan.

Sec. 33004. Transportation investment data and planning tools.

Sec. 33005. Port infrastructure development initiative.

Sec. 33006. Safety for motorized and nonmotorized users.

Sec. 33007. Buy America waiver requirements.

Sec. 33008. Make it in America Initiative.

Sec. 33009. Capacity-building for natural disasters and extreme weather.

Sec. 33010. Toll fairness study.

TITLE IV--HAZARDOUS MATERIALS TRANSPORTATION SAFETY IMPROVEMENT ACT OF 2012

Sec. 34001. Short title.

Sec. 34002. Definition.

Sec. 34003. References to title 49, United States Code.

Sec. 34004. Training for emergency responders.

Sec. 34005. Paperless Hazard Communications Pilot Program.

Sec. 34006. Improving data collection, analysis, and reporting.

Sec. 34007. Loading and unloading of hazardous materials.

Sec. 34008. Hazardous material technical assessment, research and development, and analysis program.

Sec. 34009. Hazardous Material Enforcement Training Program.

Sec. 34010. Inspections.

Sec. 34011. Civil penalties.

Sec. 34012. Reporting of fees.

Sec. 34013. Special permits, approvals, and exclusions.

Sec. 34014. Highway routing disclosures.

Sec. 34015. Authorization of appropriations.

TITLE V--NATIONAL RAIL SYSTEM PRESERVATION, EXPANSION, AND DEVELOPMENT ACT OF 2012

Sec. 35001. Short title.

Sec. 35002. References to title 49, United States Code.

Subtitle A--Federal and State Roles in Rail Planning and Development Tools

Sec. 35101. Rail plans.

Sec. 35102. Improved data on delay.

Sec. 35103. Data and modeling.

Sec. 35104. Shared-use corridor study.

Sec. 35105. Cooperative equipment pool.

Sec. 35106. Project management oversight and planning.

Sec. 35107. Improvements to the Capital Assistance Programs.

Sec. 35108. Liability.

Sec. 35109. Disadvantaged business enterprises.

Sec. 35110. Workforce development.

Sec. 35111. Veterans employment.

Subtitle B--Amtrak

Sec. 35201. State-supported routes.

Sec. 35202. Northeast corridor infrastructure and operations advisory commission.

Sec. 35203. Northeast corridor high-speed rail improvement plan.

Sec. 35204. Northeast corridor environmental review process.

Sec. 35205. Delegation authority.

Sec. 35206. Amtrak inspector general.

Sec. 35207. Compensation for private-sector use of Federally-funded assets.

Sec. 35208. On-time performance.

Sec. 35209. Board of directors.

Sec. 35210. Amtrak.

Subtitle C--Rail Safety Improvements

Sec. 35301. Positive train control.

Sec. 35302. Additional eligibility for railroad rehabilitation and improvement financing.

Sec. 35303. FCC study of spectrum availability.

Subtitle D--Freight Rail

Sec. 35401. Rail line relocation.

Sec. 35402. Compilation of complaints.

Sec. 35403. Maximum relief in certain rate cases.

Sec. 35404. Rate review timelines.

Sec. 35405. Revenue adequacy study.

Sec. 35406. Quarterly reports.

Sec. 35407. Workforce review.

Sec. 35408. Railroad rehabilitation and improvement financing.

Subtitle E--Technical Corrections

Sec. 35501. Technical corrections.

Sec. 35502. Condemnation authority.

Subtitle F--Licensing and Insurance Requirements for Passenger Rail Carriers

Sec. 35601. Certification of passenger rail carriers.

TITLE VI--SPORT FISH RESTORATION AND RECREATIONAL BOATING SAFETY ACT OF 2012

Sec. 36001. Short title.

Sec. 36002. Amendment of Federal Aid in Sport Fish Restoration Act.

TITLE VII--MISCELLANEOUS

Sec. 37001. Aircraft noise abatement.

DIVISION D--FINANCE

Sec. 40001. Short title.

TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND RELATED TAXES

Sec. 40101. Extension of trust fund expenditure authority.

Sec. 40102. Extension of highway-related taxes.

TITLE II--OTHER PROVISIONS

Sec. 40201. Temporary increase in small issuer exception to tax-exempt interest expense allocation rules for financial institutions.

Sec. 40202. Temporary modification of alternative minimum tax limitations on tax-exempt bonds.

Sec. 40203. Issuance of TRIP bonds by State infrastructure banks.

Sec. 40204. Extension of parity for exclusion from income for employer-provided mass transit and parking benefits.

Sec. 40205. Exempt-facility bonds for sewage and water supply facilities.

TITLE III--REVENUE PROVISIONS

Sec. 40301. Transfer from Leaking Underground Storage Tank Trust Fund to Highway Trust Fund.

Sec. 40302. Portion of Leaking Underground Storage Tank Trust Fund financing rate transferred to Highway Trust Fund.

Sec. 40303. Transfer of gas guzzler taxes to Highway Trust Fund.

Sec. 40304. Revocation or denial of passport in case of certain unpaid taxes.

Sec. 40305. 100 percent continuous levy on payments to Medicare providers and suppliers.

Sec. 40306. Transfer of amounts attributable to certain duties on imported vehicles into the Highway Trust Fund.

Sec. 40307. Treatment of securities of a controlled corporation exchanged for assets in certain reorganizations.

Sec. 40308. Internal Revenue Service levies and Thrift Savings Plan Accounts.

Sec. 40309. Depreciation and amortization rules for highway and related property subject to long-term leases.

Sec. 40310. Extension for transfers of excess pension assets to retiree health accounts.

Sec. 40311. Transfer of excess pension assets to retiree group term life insurance accounts.

Sec. 40312. Pension funding stabilization.

Sec. 40313. Additional transfers to Highway Trust Fund.

Sec. 40314. Transfers to Federal Old-Age and Survivors Insurance Trust Fund and Federal Disability Insurance Trust Fund.

DIVISION E--RESEARCH AND EDUCATION

Sec. 50001. Short title.

TITLE I--FUNDING

Sec. 51001. Authorization of appropriations.

TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

Sec. 52001. Research, technology, and education.

Sec. 52002. Surface transportation research, development, and technology.

Sec. 52003. Research and technology development and deployment.

Sec. 52004. Training and education.

Sec. 52005. State planning and research.

Sec. 52006. International highway transportation program.

Sec. 52007. Surface transportation environmental cooperative research program.

Sec. 52008. National cooperative freight research.

Sec. 52009. Prize authority.

Sec. 52010. University transportation centers program.

Sec. 52011. Bureau of transportation statistics.

Sec. 52012. Administrative authority.

Sec. 52013. Transportation research and development strategic planning.

TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

Sec. 53001. Use of funds for its activities.

Sec. 53002. Goals and purposes.

Sec. 53003. General authorities and requirements.

Sec. 53004. Research and development.

Sec. 53005. National architecture and standards.

Sec. 53006. Vehicle-to-vehicle and vehicle-to-infrastructure communications systems deployment.

DIVISION F--MISCELLANEOUS

TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS

Subtitle A--Secure Rural Schools and Community Self-determination Program

Sec. 100101. Secure Rural Schools and Community Self-Determination Program.

Subtitle B--Payment in Lieu of Taxes Program

Sec. 100111. Payments in lieu of taxes.

Subtitle C--Offsets

Sec. 100112. Tax reporting for life settlement transactions.

Sec. 100113. Clarification of tax basis of life insurance contracts.

Sec. 100114. Exception to transfer for valuable consideration rules.

Sec. 100115. Phased retirement authority.

Sec. 100116. Roll-your-own cigarette machines.

TITLE II--STOP TAX HAVEN ABUSE

Sec. 100201. Authorizing special measures against foreign jurisdictions, financial institutions, and others that significantly impede United States tax enforcement.

DIVISION G--AIR TRANSPORTATION

Sec. 100301. Technical corrections relating to overflights of National Parks.

DIVISION H--BUDGETARY EFFECTS

Sec. 100401. Budgetary effects.

SEC. 2. DEFINITIONS.

In this Act, the following definitions apply:

(1) DEPARTMENT- The term ‘Department’ means the Department of Transportation.

(2) SECRETARY- The term ‘Secretary’ means the Secretary of Transportation.

DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION PROGRAMS

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Authorizations and Programs

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

(a) In General- The following sums are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account):

(1) FEDERAL-AID HIGHWAY PROGRAM- For the national highway performance program under section 119 of title 23, United States Code, the transportation mobility program under section 133 of that title, the highway safety improvement program under section 148 of that title, the congestion mitigation and air quality improvement program under section 149 of that title, the national freight program under section 167 of that title, and to carry out section 134 of that title--

(A) $39,143,000,000 for fiscal year 2012; and

(B) $39,806,000,000 for fiscal year 2013.

(2) TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION PROGRAM- For credit assistance under the transportation infrastructure finance and innovation program under chapter 6 of title 23, United States Code, $1,000,000,000 for each of fiscal years 2012 and 2013.

(3) FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS-

(A) TRIBAL TRANSPORTATION PROGRAM- For the tribal transportation program under section 202 of title 23, United States Code, $450,000,000 for each of fiscal years 2012 and 2013.

(B) FEDERAL LANDS TRANSPORTATION PROGRAM- For the Federal lands transportation program under section 203 of title 23, United States Code, $300,000,000 for each of fiscal years 2012 and 2013, of which $260,000,000 of the amount made available for each fiscal year shall be the amount for the National Park Service and the United States Fish and Wildlife Service.

(C) FEDERAL LANDS ACCESS PROGRAM- For the Federal lands access program under section 204 of title 23, United States Code, $250,000,000 for each of fiscal years 2012 and 2013.

(4) TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM- For the territorial and Puerto Rico highway program under section 165 of title 23, United States Code, $180,000,000 for each of fiscal years 2012 and 2013.

(b) Disadvantaged Business Enterprises-

(1) DEFINITIONS- In this subsection, the following definitions apply:

(A) SMALL BUSINESS CONCERN-

(i) IN GENERAL- The term ‘small business concern’ means a small business concern (as the term is used in section 3 of the Small Business Act (15 U.S.C. 632)).

(ii) EXCLUSIONS- The term ‘small business concern’ does not include any concern or group of concerns controlled by the same socially and economically disadvantaged individual or individuals that have average annual gross receipts during the preceding 3 fiscal years in excess of $22,410,000, as adjusted annually by the Secretary for inflation.

(B) SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS- The term ‘socially and economically disadvantaged individuals’ means--

(i) women; and

(ii) any other socially and economically disadvantaged individuals (as the term is used in section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and relevant subcontracting regulations promulgated pursuant to that Act).

(2) AMOUNTS FOR SMALL BUSINESS CONCERNS- Except to the extent that the Secretary determines otherwise, not less than 10 percent of the amounts made available for any program under divisions A and B of this Act and section 403 of title 23, United States Code, shall be expended through small business concerns owned and controlled by socially and economically disadvantaged individuals.

(3) ANNUAL LISTING OF DISADVANTAGED BUSINESS ENTERPRISES- Each State shall annually--

(A) survey and compile a list of the small business concerns referred to in paragraph (2) in the State, including the location of the small business concerns in the State; and

(B) notify the Secretary, in writing, of the percentage of the small business concerns that are controlled by--

(i) women;

(ii) socially and economically disadvantaged individuals (other than women); and

(iii) individuals who are women and are otherwise socially and economically disadvantaged individuals.

(4) UNIFORM CERTIFICATION-

(A) IN GENERAL- The Secretary shall establish minimum uniform criteria for use by State governments in certifying whether a concern qualifies as a small business concern for the purpose of this subsection.

(B) INCLUSIONS- The minimum uniform criteria established under subparagraph (A) shall include, with respect to a potential small business concern--

(i) on-site visits;

(ii) personal interviews with personnel;

(iii) issuance or inspection of licenses;

(iv) analyses of stock ownership;

(v) listings of equipment;

(vi) analyses of bonding capacity;

(vii) listings of work completed;

(viii) examination of the resumes of principal owners;

(ix) analyses of financial capacity; and

(x) analyses of the type of work preferred.

(5) REPORTING- The Secretary shall establish minimum requirements for use by State governments in reporting to the Secretary--

(A) information concerning disadvantaged business enterprise awards, commitments, and achievements; and

(B) such other information as the Secretary determines to be appropriate for the proper monitoring of the disadvantaged business enterprise program.

(6) COMPLIANCE WITH COURT ORDERS- Nothing in this subsection limits the eligibility of an individual or entity to receive funds made available under divisions A and B of this Act and section 403 of title 23, United States Code, if the entity or person is prevented, in whole or in part, from complying with paragraph (2) because a Federal court issues a final order in which the court finds that a requirement or the implementation of paragraph (2) is unconstitutional.

SEC. 1102. OBLIGATION CEILING.

(a) General Limitation- Subject to subsection (e), and notwithstanding any other provision of law, the obligations for Federal-aid highway and highway safety construction programs shall not exceed--

(1) $41,564,000,000 for fiscal year 2012; and

(2) $42,227,000,000 for fiscal year 2013.

(b) Exceptions- The limitations under subsection (a) shall not apply to obligations under or for--

(1) section 125 of title 23, United States Code;

(2) section 147 of the Surface Transportation Assistance Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);

(3) section 9 of the Federal-Aid Highway Act of 1981 (95 Stat. 1701);

(4) subsections (b) and (j) of section 131 of the Surface Transportation Assistance Act of 1982 (96 Stat. 2119);

(5) subsections (b) and (c) of section 149 of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (101 Stat. 198);

(6) sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2027);

(7) section 157 of title 23, United States Code (as in effect on June 8, 1998);

(8) section 105 of title 23, United States Code (as in effect for fiscal years 1998 through 2004, but only in an amount equal to $639,000,000 for each of those fiscal years);

(9) Federal-aid highway programs for which obligation authority was made available under the Transportation Equity Act for the 21st Century (112 Stat. 107) or subsequent Acts for multiple years or to remain available until expended, but only to the extent that the obligation authority has not lapsed or been used;

(10) section 105 of title 23, United States Code (but, for each of fiscal years 2005 through 2011, only in an amount equal to $639,000,000 for each of those fiscal years);

(11) section 1603 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (119 Stat. 1248), to the extent that funds obligated in accordance with that section were not subject to a limitation on obligations at the time at which the funds were initially made available for obligation; and

(12) section 119 of title 23, United States Code (but, for each of fiscal years 2012 through 2013, only in an amount equal to $639,000,000 for each of those fiscal years).

(c) Distribution of Obligation Authority- For each of fiscal years 2012 through 2013, the Secretary--

(1) shall not distribute obligation authority provided by subsection (a) for the fiscal year for--

(A) amounts authorized for administrative expenses and programs by section 104(a) of title 23, United States Code; and

(B) amounts authorized for the Bureau of Transportation Statistics;

(2) shall not distribute an amount of obligation authority provided by subsection (a) that is equal to the unobligated balance of amounts--

(A) made available from the Highway Trust Fund (other than the Mass Transit Account) for Federal-aid highway and highway safety construction programs for previous fiscal years the funds for which are allocated by the Secretary (or apportioned by the Secretary under sections 202 or 204 of title 23, United States Code); and

(B) for which obligation authority was provided in a previous fiscal year;

(3) shall determine the proportion that--

(A) the obligation authority provided by subsection (a) for the fiscal year, less the aggregate of amounts not distributed under paragraphs (1) and (2) of this subsection; bears to

(B) the total of the sums authorized to be appropriated for the Federal-aid highway and highway safety construction programs (other than sums authorized to be appropriated for provisions of law described in paragraphs (1) through (11) of subsection (b) and sums authorized to be appropriated for section 119 of title 23, United States Code, equal to the amount referred to in subsection (b)(12) for the fiscal year), less the aggregate of the amounts not distributed under paragraphs (1) and (2) of this subsection;

(4) shall distribute the obligation authority provided by subsection (a), less the aggregate amounts not distributed under paragraphs (1) and (2), for each of the programs (other than programs to which paragraph (1) applies) that are allocated by the Secretary under this Act and title 23, United States Code, or apportioned by the Secretary under sections 202 or 204 of that title, by multiplying--

(A) the proportion determined under paragraph (3); by

(B) the amounts authorized to be appropriated for each such program for the fiscal year; and

(5) shall distribute the obligation authority provided by subsection (a), less the aggregate amounts not distributed under paragraphs (1) and (2) and the amounts distributed under paragraph (4), for Federal-aid highway and highway safety construction programs that are apportioned by the Secretary under title 23, United States Code (other than the amounts apportioned for the national highway performance program in section 119 of title 23, United States Code, that are exempt from the limitation under subsection (b)(12) and the amounts apportioned under section 204 of that title) in the proportion that--

(A) amounts authorized to be appropriated for the programs that are apportioned under title 23, United States Code, to each State for the fiscal year; bears to

(B) the total of the amounts authorized to be appropriated for the programs that are apportioned under title 23, United States Code, to all States for the fiscal year.

(d) Redistribution of Unused Obligation Authority- Notwithstanding subsection (c), the Secretary shall, after August 1 of each of fiscal years 2012 through 2013--

(1) revise a distribution of the obligation authority made available under subsection (c) if an amount distributed cannot be obligated during that fiscal year; and

(2) redistribute sufficient amounts to those States able to obligate amounts in addition to those previously distributed during that fiscal year, giving priority to those States having large unobligated balances of funds apportioned under sections 144 (as in effect on the day before the date of enactment of this Act) and 104 of title 23, United States Code.

(e) Applicability of Obligation Limitations to Transportation Research Programs-

(1) IN GENERAL- Except as provided in paragraph (2), obligation limitations imposed by subsection (a) shall apply to contract authority for transportation research programs carried out under--

(A) chapter 5 of title 23, United States Code; and

(B) division E of this Act.

(2) EXCEPTION- Obligation authority made available under paragraph (1) shall--

(A) remain available for a period of 4 fiscal years; and

(B) be in addition to the amount of any limitation imposed on obligations for Federal-aid highway and highway safety construction programs for future fiscal years.

(f) Redistribution of Certain Authorized Funds-

(1) IN GENERAL- Not later than 30 days after the date of distribution of obligation authority under subsection (c) for each of fiscal years 2012 through 2013, the Secretary shall distribute to the States any funds (excluding funds authorized for the program under section 202 of title 23, United States Code) that--

(A) are authorized to be appropriated for the fiscal year for Federal-aid highway programs; and

(B) the Secretary determines will not be allocated to the States (or will not be apportioned to the States under section 204 of title 23, United States Code), and will not be available for obligation, for the fiscal year because of the imposition of any obligation limitation for the fiscal year.

(2) RATIO- Funds shall be distributed under paragraph (1) in the same proportion as the distribution of obligation authority under subsection (c)(5).

(3) AVAILABILITY- Funds distributed to each State under paragraph (1) shall be available for any purpose described in section 133(c) of title 23, United States Code.

SEC. 1103. DEFINITIONS.

(a) Definitions- Section 101(a) of title 23, United States Code, is amended--

(1) by striking paragraphs (6), (7), (9), (12), (19), (20), (24), (25), (26), (28), (38), and (39);

(2) by redesignating paragraphs (2), (3), (4), (5), (8), (13), (14), (15), (16), (17), (18), (21), (22), (23), (27), (29), (30), (31), (32), (33), (34), (35), (36), and (37) as paragraphs (3), (4), (5), (6), (9), (12), (13), (14), (15), (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), (26), (28), (29), (33), and (34), respectively;

(3) by inserting after paragraph (1) the following:

‘(2) ASSET MANAGEMENT- The term ‘asset management’ means a strategic and systematic process of operating, maintaining, and improving physical assets, with a focus on both engineering and economic analysis based upon quality information, to identify a structured sequence of maintenance, preservation, repair, rehabilitation, and replacement actions that will achieve and sustain a desired state of good repair over the lifecycle of the assets at minimum practicable cost.’;

(4) in paragraph (4) (as redesignated by paragraph (2))--

(A) in the matter preceding subparagraph (A), by inserting ‘or any project eligible for assistance under this title’ after ‘of a highway’;

(B) by striking subparagraph (A) and inserting the following:

‘(A) preliminary engineering, engineering, and design-related services directly relating to the construction of a highway project, including engineering, design, project development and management, construction project management and inspection, surveying, mapping (including the establishment of temporary and permanent geodetic control in accordance with specifications of the National Oceanic and Atmospheric Administration), and architectural-related services;’;

(C) in subparagraph (B)--

(i) by inserting ‘reconstruction,’ before ‘resurfacing’; and

(ii) by striking ‘and rehabilitation’ and inserting ‘rehabilitation, and preservation’;

(D) in subparagraph (E) by striking ‘railway’ and inserting ‘railway-highway’; and

(E) in subparagraph (F) by striking ‘obstacles’ and inserting ‘hazards’.

(5) in paragraph (6) (as so redesignated)--

(A) by inserting ‘public’ before ‘highway eligible’; and

(B) by inserting ‘functionally’ before ‘classified’;

(6) by inserting after paragraph (6) (as so redesignated) the following:

‘(7) FEDERAL LANDS ACCESS TRANSPORTATION FACILITY- The term ‘Federal Lands access transportation facility’ means a public highway, road, bridge, trail, or transit system that is located on, is adjacent to, or provides access to Federal lands for which title or maintenance responsibility is vested in a State, county, town, township, tribal, municipal, or local government.

‘(8) FEDERAL LANDS TRANSPORTATION FACILITY- The term ‘Federal lands transportation facility’ means a public highway, road, bridge, trail, or transit system that is located on, is adjacent to, or provides access to Federal lands for which title and maintenance responsibility is vested in the Federal Government, and that appears on the national Federal lands transportation facility inventory described in section 203(c).’;

(7) in paragraph (11)(B) by inserting ‘including public roads on dams’ after ‘drainage structure’;

(8) in paragraph (14) (as so redesignated)--

(A) by striking ‘as a’ and inserting ‘as an air quality’; and

(B) by inserting ‘air quality’ before ‘attainment area’;

(9) in paragraph (18) (as so redesignated) by striking ‘an undertaking to construct a particular portion of a highway, or if the context so implies, the particular portion of a highway so constructed or any other undertaking’ and inserting ‘any undertaking’;

(10) in paragraph (19) (as so redesignated)--

(A) by striking ‘the State transportation department and’; and

(B) by inserting ‘and the recipient’ after ‘Secretary’;

(11) by striking paragraph (23) (as so redesignated) and inserting the following:

‘(23) SAFETY IMPROVEMENT PROJECT- The term ‘safety improvement project’ means a strategy, activity, or project on a public road that is consistent with the State strategic highway safety plan and corrects or improves a roadway feature that constitutes a hazard to road users or addresses a highway safety problem.’;

(12) by inserting after paragraph (26) (as so redesignated) the following:

‘(27) STATE STRATEGIC HIGHWAY SAFETY PLAN- The term ‘State strategic highway safety plan’ has the same meaning given such term in section 148(a).’;

(13) by striking paragraph (29) (as so redesignated) and inserting the following:

‘(29) TRANSPORTATION ENHANCEMENT ACTIVITY- The term ‘transportation enhancement activity’ means any of the following activities when carried out as part of any program or project authorized or funded under this title, or as an independent program or project related to surface transportation:

‘(A) Provision of facilities for pedestrians and bicycles.

‘(B) Provision of safety and educational activities for pedestrians and bicyclists.

‘(C) Acquisition of scenic easements and scenic or historic sites.

‘(D) Scenic or historic highways and bridges.

‘(E) Vegetation management practices in transportation rights-of-way and other activities eligible under section 319.

‘(F) Historic preservation, rehabilitation, and operation of historic transportation buildings, structures, or facilities.

‘(G) Preservation of abandoned railway corridors, including the conversion and use of the corridors for pedestrian or bicycle trails.

‘(H) Inventory, control, and removal of outdoor advertising.

‘(I) Archaeological planning and research.

‘(J) Any environmental mitigation activity, including pollution prevention and pollution abatement activities and mitigation to--

‘(i) address stormwater management, control, and water pollution prevention or abatement related to highway construction or due to highway runoff, including activities described in sections 133(b)(11), 328(a), and 329; or

‘(ii) reduce vehicle-caused wildlife mortality or to restore and maintain connectivity among terrestrial or aquatic habitats.’; and

(14) by inserting after paragraph (29) (as so redesignated) the following:

‘(30) TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS-

‘(A) IN GENERAL- The term ‘transportation systems management and operations’ means integrated strategies to optimize the performance of existing infrastructure through the implementation of multimodal and intermodal, cross-jurisdictional systems, services, and projects designed to preserve capacity and improve security, safety, and reliability of the transportation system.

‘(B) INCLUSIONS- The term ‘transportation systems management and operations’ includes--

‘(i) actions such as traffic detection and surveillance, corridor management, freeway management, arterial management, active transportation and demand management, work zone management, emergency management, traveler information services, congestion pricing, parking management, automated enforcement, traffic control, commercial vehicle operations, freight management, and coordination of highway, rail, transit, bicycle, and pedestrian operations; and

‘(ii) coordination of the implementation of regional transportation system management and operations investments (such as traffic incident management, traveler information services, emergency management, roadway weather management, intelligent transportation systems, communication networks, and information sharing systems) requiring agreements, integration, and interoperability to achieve targeted system performance, reliability, safety, and customer service levels.

‘(31) TRIBAL TRANSPORTATION FACILITY- The term ‘tribal transportation facility’ means a public highway, road, bridge, trail, or transit system that is located on or provides access to tribal land and appears on the national tribal transportation facility inventory described in section 202(b)(1).

‘(32) TRUCK STOP ELECTRIFICATION SYSTEM- The term ‘truck stop electrification system’ means a system that delivers heat, air conditioning, electricity, or communications to a heavy-duty vehicle.’.

(b) Sense of Congress- Section 101(c) of title 23, United States Code, is amended by striking ‘system’ and inserting ‘highway’.

SEC. 1104. NATIONAL HIGHWAY SYSTEM.

(a) In General- Section 103 of title 23, United States Code, is amended to read as follows:

‘Sec. 103. National highway system

‘(a) In General- For the purposes of this title, the Federal-aid system is the National Highway System, which includes the Interstate System.

‘(b) National Highway System-

‘(1) DESCRIPTION- The National Highway System consists of the highway routes and connections to transportation facilities that shall--

‘(A) serve major population centers, international border crossings, ports, airports, public transportation facilities, and other intermodal transportation facilities and other major travel destinations;

‘(B) meet national defense requirements; and

‘(C) serve interstate and interregional travel and commerce.

‘(2) COMPONENTS- The National Highway System described in paragraph (1) consists of the following:

‘(A) The National Highway System depicted on the map submitted by the Secretary of Transportation to Congress with the report entitled ‘Pulling Together: The National Highway System and its Connections to Major Intermodal Terminals’ and dated May 24, 1996, and modifications approved by the Secretary before the date of enactment of the MAP-21.

‘(B) Other urban and rural principal arterial routes, and border crossings on those routes, that were not included on the National Highway System before the date of enactment of the MAP-21.

‘(C) Other connector highways (including toll facilities) that were not included in the National Highway System before the date of enactment of the MAP-21 but that provide motor vehicle access between arterial routes on the National Highway System and a major intermodal transportation facility.

‘(D) A strategic highway network that--

‘(i) consists of a network of highways that are important to the United States strategic defense policy, that provide defense access, continuity, and emergency capabilities for the movement of personnel, materials, and equipment in both peacetime and wartime, and that were not included on the National Highway System before the date of enactment of the MAP-21;

‘(ii) may include highways on or off the Interstate System; and

‘(iii) shall be designated by the Secretary, in consultation with appropriate Federal agencies and the States.

‘(E) Major strategic highway network connectors that--

‘(i) consist of highways that provide motor vehicle access between major military installations and highways that are part of the strategic highway network but were not included on the National Highway System before the date of enactment of the MAP-21; and

‘(ii) shall be designated by the Secretary, in consultation with appropriate Federal agencies and the States.

‘(3) MODIFICATIONS TO NHS-

‘(A) IN GENERAL- The Secretary may make any modification, including any modification consisting of a connector to a major intermodal terminal, to the National Highway System that is proposed by a State if the Secretary determines that the modification--

‘(i) meets the criteria established for the National Highway System under this title after the date of enactment of the MAP-21; and

‘(ii) enhances the national transportation characteristics of the National Highway System.

‘(B) COOPERATION-

‘(i) IN GENERAL- In proposing a modification under this paragraph, a State shall cooperate with local and regional officials.

‘(ii) URBANIZED AREAS- In an urbanized area, the local officials shall act through the metropolitan planning organization designated for the area under section 134.

‘(c) Interstate System-

‘(1) DESCRIPTION-

‘(A) IN GENERAL- The Dwight D. Eisenhower National System of Interstate and Defense Highways within the United States (including the District of Columbia and Puerto Rico) consists of highways designed, located, and selected in accordance with this paragraph.

‘(B) DESIGN-

‘(i) IN GENERAL- Except as provided in clause (ii), highways on the Interstate System shall be designed in accordance with the standards of section 109(b).

‘(ii) EXCEPTION- Highways on the Interstate System in Alaska and Puerto Rico shall be designed in accordance with such geometric and construction standards as are adequate for current and probable future traffic demands and the needs of the locality of the highway.

‘(C) LOCATION- Highways on the Interstate System shall be located so as--

‘(i) to connect by routes, as direct as practicable, the principal metropolitan areas, cities, and industrial centers;

‘(ii) to serve the national defense; and

‘(iii) to the maximum extent practicable, to connect at suitable border points with routes of continental importance in Canada and Mexico.

‘(D) SELECTION OF ROUTES- To the maximum extent practicable, each route of the Interstate System shall be selected by joint action of the State transportation departments of the State in which the route is located and the adjoining States, in cooperation with local and regional officials, and subject to the approval of the Secretary.

‘(2) MAXIMUM MILEAGE- The mileage of highways on the Interstate System shall not exceed 43,000 miles, exclusive of designations under paragraph (4).

‘(3) MODIFICATIONS- The Secretary may approve or require modifications to the Interstate System in a manner consistent with the policies and procedures established under this subsection.

‘(4) INTERSTATE SYSTEM DESIGNATIONS-

‘(A) ADDITIONS- If the Secretary determines that a highway on the National Highway System meets all standards of a highway on the Interstate System and that the highway is a logical addition or connection to the Interstate System, the Secretary may, upon the affirmative recommendation of the State or States in which the highway is located, designate the highway as a route on the Interstate System.

‘(B) DESIGNATIONS AS FUTURE INTERSTATE SYSTEM ROUTES-

‘(i) IN GENERAL- Subject to clauses (ii) through (vi), if the Secretary determines that a highway on the National Highway System would be a logical addition or connection to the Interstate System and would qualify for designation as a route on the Interstate System under subparagraph (A) if the highway met all standards of a highway on the Interstate System, the Secretary may, upon the affirmative recommendation of the State or States in which the highway is located, designate the highway as a future Interstate System route.

‘(ii) WRITTEN AGREEMENT- A designation under clause (i) shall be made only upon the written agreement of each State described in that clause that the highway will be constructed to meet all standards of a highway on the Interstate System by not later than the date that is 25 years after the date of the agreement.

‘(iii) FAILURE TO COMPLETE CONSTRUCTION- If a State described in clause (i) has not substantially completed the construction of a highway designated under this subparagraph by the date specified in clause (ii), the Secretary shall remove the designation of the highway as a future Interstate System route.

‘(iv) EFFECT OF REMOVAL- Removal of the designation of a highway under clause (iii) shall not preclude the Secretary from designating the highway as a route on the Interstate System under subparagraph (A) or under any other provision of law providing for addition to the Interstate System.

‘(v) RETROACTIVE EFFECT- An agreement described in clause (ii) that is entered into before August 10, 2005, shall be deemed to include the 25-year time limitation described in that clause, regardless of any earlier construction completion date in the agreement.

‘(vi) REFERENCES- No law, rule, regulation, map, document, or other record of the United States, or of any State or political subdivision of a State, shall refer to any highway designated as a future Interstate System route under this subparagraph, and no such highway shall be signed or marked, as a highway on the Interstate System, until such time as the highway--

‘(I) is constructed to the geometric and construction standards for the Interstate System; and

‘(II) has been designated as a route on the Interstate System.

‘(C) FINANCIAL RESPONSIBILITY- Except as provided in this title, the designation of a highway under this paragraph shall create no additional Federal financial responsibility with respect to the highway.

‘(5) EXEMPTION OF INTERSTATE SYSTEM-

‘(A) IN GENERAL- Except as provided in subparagraph (B), the Interstate System shall not be considered to be a historic site under section 303 of title 49 or section 138 of this title, regardless of whether the Interstate System or portions or elements of the Interstate System are listed on, or eligible for listing on, the National Register of Historic Places.

‘(B) INDIVIDUAL ELEMENTS- Subject to subparagraph (C)--

‘(i) the Secretary shall determine, through the administrative process established for exempting the Interstate System from section 106 of the National Historic Preservation Act (16 U.S.C. 470f), those individual elements of the Interstate System that possess national or exceptional historic significance (such as a historic bridge or a highly significant engineering feature); and

‘(ii) those elements shall be considered to be historic sites under section 303 of title 49 or section 138 of this title, as applicable.

‘(C) CONSTRUCTION, MAINTENANCE, RESTORATION, AND REHABILITATION ACTIVITIES- Subparagraph (B) does not prohibit a State from carrying out construction, maintenance, preservation, restoration, or rehabilitation activities for a portion of the Interstate System referred to in subparagraph (B) upon compliance with section 303 of title 49 or section 138 of this title, as applicable, and section 106 of the National Historic Preservation Act (16 U.S.C. 470f).’.’

(b) Inclusion of Certain Route Segments on Interstate System-

(1) IN GENERAL- Section 1105(e)(5)(A) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2031; 109 Stat. 597; 115 Stat. 872) is amended--

(A) in the first sentence, by striking ‘and in subsections (c)(18) and (c)(20)’ and inserting ‘, in subsections (c)(18) and (c)(20), and in subparagraphs (A)(iii) and (B) of subsection (c)(26)’; and

(B) in the second sentence, by striking ‘that the segment’ and all that follows through the period and inserting ‘that the segment meets the Interstate System design standards approved by the Secretary under section 109(b) of title 23, United States Code, and is planned to connect to an existing Interstate System segment by the date that is 25 years after the date of enactment of the MAP-21.’.

(2) ROUTE DESIGNATION- Section 1105(e)(5)(C)(i) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2032; 109 Stat. 598) is amended by adding at the end the following: ‘The routes referred to subparagraphs (A)(iii) and (B)(i) of subsection (c)(26) are designated as Interstate Route I-11.’.

(c) Conforming Amendments-

(1) ANALYSIS- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 103 and inserting the following:

‘103. National highway system.’.

(2) SECTION 113- Section 113 of title 23, United States Code, is amended--

(A) in subsection (a) by striking ‘the Federal-aid systems’ and inserting ‘Federal-aid highways’; and

(B) in subsection (b), in the first sentence, by striking ‘of the Federal-aid systems’ and inserting ‘Federal-aid highway’.

(3) SECTION 123- Section 123(a) of title 23, United States Code, is amended in the first sentence by striking ‘Federal-aid system’ and inserting ‘Federal-aid highway’.

(4) SECTION 217- Section 217(b) of title 23, United States Code, is amended in the subsection heading by striking ‘National Highway System’ and inserting ‘National Highway Performance Program’.

(5) SECTION 304- Section 304 of title 23, United States Code, is amended in the first sentence by striking ‘the Federal-aid highway systems’ and inserting ‘Federal-aid highways’.

(6) SECTION 317- Section 317(d) of title 23, United States Code is amended by striking ‘system’ and inserting ‘highway’.

SEC. 1105. APPORTIONMENT.

(a) In General- Section 104 of title 23, United States Code, is amended to read as follows:

‘Sec. 104. Apportionment

‘(a) Administrative Expenses-

‘(1) IN GENERAL- There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to be made available to the Secretary for administrative expenses of the Federal Highway Administration $480,000,000 for each of fiscal years 2012 and 2013.

‘(2) PURPOSES- The amounts authorized to be appropriated by this subsection shall be used--

‘(A) to administer the provisions of law to be funded from appropriations for the Federal-aid highway program and programs authorized under chapter 2;

‘(B) to make transfers of such sums as the Secretary determines to be appropriate to the Appalachian Regional Commission for administrative activities associated with the Appalachian development highway system; and

‘(C) to reimburse, as appropriate, the Office of Inspector General of the Department of Transportation for the conduct of annual audits of financial statements in accordance with section 3521 of title 31.

‘(3) AVAILABILITY- The amounts made available under paragraph (1) shall remain available until expended.

‘(b) Division of State Apportionments Among Programs- The Secretary shall distribute the amount apportioned to a State for a fiscal year under subsection (c) among the national highway performance program, the transportation mobility program, the highway safety improvement program, the congestion mitigation and air quality improvement program, and the national freight program, and to carry out section 134 as follows:

‘(1) NATIONAL HIGHWAY PERFORMANCE PROGRAM- For the national highway performance program, 58 percent of the amount remaining after distributing amounts under paragraphs (4) and (6).

‘(2) TRANSPORTATION MOBILITY PROGRAM- For the transportation mobility program, 29.3 percent of the amount remaining after distributing amounts under paragraphs (4) and (6).

‘(3) HIGHWAY SAFETY IMPROVEMENT PROGRAM- For the highway safety improvement program, 7 percent of the amount remaining after distributing amounts under paragraphs (4) and (6).

‘(4) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM- For the congestion mitigation and air quality improvement program, an amount determined by multiplying the amount determined for the State under subsection (c) by the proportion that--

‘(A) the amount apportioned to the State for the congestion mitigation and air quality improvement program for fiscal year 2009, plus 10 percent of the amount apportioned to the State for the surface transportation program for that fiscal year; bears to

‘(B) the total amount of funds apportioned to the State for that fiscal year for the programs referred to in section 105(a)(2) (except for the high priority projects program referred to in section 105(a)(2)(H)), as in effect on the day before the date of enactment of the MAP-21.

‘(5) NATIONAL FREIGHT PROGRAM- For the national freight program, 5.7 percent of the amount remaining after distributing amounts under paragraphs (4) and (6).

‘(6) METROPOLITAN PLANNING- To carry out section 134, an amount determined by multiplying the amount determined for the State under subsection (c) by the proportion that--

‘(A) the amount apportioned to the State to carry out section 134 for fiscal year 2009; bears to

‘(B) the total amount of funds apportioned to the State for that fiscal year for the programs referred to in section 105(a)(2) (except for the high priority projects program referred to in section 105(a)(2)(H)), as in effect on the day before the date of enactment of the MAP-21.

‘(c) Calculation of State Amounts-

‘(1) STATE SHARE- The amount for each State of combined apportionments for the national highway performance program under section 119, the transportation mobility program under section 133, the highway safety improvement program under section 148, the congestion mitigation and air quality improvement program under section 149, the national freight program under section 167, and to carry out section 134 shall be determined as follows:

‘(A) INITIAL AMOUNT- The initial amount for each State shall be determined by multiplying the total amount available for apportionment by the share for each State which shall be equal to the proportion that--

‘(i) the amount of apportionments and allocations that the State received for fiscal years 2005 through 2009; bears to

‘(ii) the amount of those apportionments and allocations received by all States for those fiscal years.

‘(B) ADJUSTMENTS TO AMOUNTS- The initial amounts resulting from the calculation under subparagraph (A) shall be adjusted to ensure that, for each State, the amount of combined apportionments for the programs shall not be less than 95 percent of the estimated tax payments attributable to highway users in the State paid into the Highway Trust Fund (other than the Mass Transit Account) in the most recent fiscal year for which data are available.

‘(C) FURTHER ADJUSTMENT FOR PRIVATIZED HIGHWAYS-

‘(i) DEFINITION OF PRIVATIZED HIGHWAY- In this subparagraph:

‘(I) IN GENERAL- The term ‘privatized highway’ means a highway that was formerly a publically operated toll road that is subject to an agreement giving a private entity--

‘(aa) control over the operation of the highway; and

‘(bb) ownership over the toll revenues collected from the operation of the highway.

‘(II) EXCLUSION- The term ‘privatized highway’ does not include any highway or toll road that was originally--

‘(aa) financed and constructed using private funds; and

‘(bb) operated by a private entity.

‘(ii) ADJUSTMENT- After making the adjustments to the apportionment of a State under subparagraphs (A) and (B), the Secretary shall further adjust the amount to be apportioned to the State by reducing the apportionment by an amount equal to the product obtained by multiplying--

‘(I) the amount to be apportioned to the State, as so adjusted under those subparagraphs; and

‘(II) the percentage described in clause (iii).

‘(iii) PERCENTAGE- The percentage referred to in clause (ii) is the percentage equal to the sum obtained by adding--

‘(I) the product obtained by multiplying--

‘(aa) 1/2 ; and

‘(bb) the proportion that--

‘(AA) the total number of lane miles on privatized highway lanes on National Highway System routes in a State; bears to

‘(BB) the total number of all lane miles on National Highway System routes in the State; and

‘(II) the product obtained by multiplying--

‘(aa) 1/2 ; and

‘(bb) the proportion that--

‘(AA) the total number of vehicle miles traveled on privatized highway lanes on National Highway System routes in the State; bears to

‘(BB) the total number of vehicle miles traveled on all lanes on National Highway System routes in the State.

‘(iv) REAPPORTIONMENT- An amount withheld from apportionment to a State under clause (ii) shall be reapportioned among all other States based on the proportions calculated under subparagraph (A).

‘(2) STATE APPORTIONMENT- On October 1 of each fiscal year, the Secretary shall apportion the sum authorized to be appropriated for expenditure on the national highway performance program under section 119, the transportation mobility program under section 133, the highway safety improvement program under section 148, the congestion mitigation and air quality improvement program under section 149, the national freight program under section 167, and to carry out section 134 in accordance with paragraph (1).

‘(d) Metropolitan Planning-

‘(1) USE OF AMOUNTS-

‘(A) USE-

‘(i) IN GENERAL- Except as provided in clause (ii), the amounts apportioned to a State under subsection (b)(6) shall be made available by the State to the metropolitan planning organizations responsible for carrying out section 134 in the State.

‘(ii) STATES RECEIVING MINIMUM APPORTIONMENT- A State that received the minimum apportionment for use in carrying out section 134 for fiscal year 2009 may, subject to the approval of the Secretary, use the funds apportioned under subsection (b)(6) to fund transportation planning outside of urbanized areas.

‘(B) UNUSED FUNDS- Any funds that are not used to carry out section 134 may be made available by a metropolitan planning organization to the State to fund activities under section 135.

‘(2) DISTRIBUTION OF AMOUNTS WITHIN STATES-

‘(A) IN GENERAL- The distribution within any State of the planning funds made available to organizations under paragraph (1) shall be in accordance with a formula that--

‘(i) is developed by each State and approved by the Secretary; and

‘(ii) takes into consideration, at a minimum, population, status of planning, attainment of air quality standards, metropolitan area transportation needs, and other factors necessary to provide for an appropriate distribution of funds to carry out section 134 and other applicable requirements of Federal law.

‘(B) REIMBURSEMENT- Not later than 15 business days after the date of receipt by a State of a request for reimbursement of expenditures made by a metropolitan planning organization for carrying out section 134, the State shall reimburse, from amounts distributed under this paragraph to the metropolitan planning organization by the State, the metropolitan planning organization for those expenditures.

‘(3) DETERMINATION OF POPULATION FIGURES- For the purpose of determining population figures under this subsection, the Secretary shall use the latest available data from the decennial census conducted under section 141(a) of title 13, United States Code.

‘(e) Certification of Apportionments-

‘(1) IN GENERAL- The Secretary shall--

‘(A) on October 1 of each fiscal year, certify to each of the State transportation departments the amount that has been apportioned to the State under this section for the fiscal year; and

‘(B) to permit the States to develop adequate plans for the use of amounts apportioned under this section, advise each State of the amount that will be apportioned to the State under this section for a fiscal year not later than 90 days before the beginning of the fiscal year for which the sums to be apportioned are authorized.

‘(2) NOTICE TO STATES- If the Secretary has not made an apportionment under this section for a fiscal year beginning after September 30, 1998, by not later than the date that is the twenty-first day of that fiscal year, the Secretary shall submit, by not later than that date, to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate, a written statement of the reason for not making the apportionment in a timely manner.

‘(3) APPORTIONMENT CALCULATIONS-

‘(A) IN GENERAL- The calculation of official apportionments of funds to the States under this title is a primary responsibility of the Department and shall be carried out only by employees (and not contractors) of the Department.

‘(B) PROHIBITION ON USE OF FUNDS TO HIRE CONTRACTORS- None of the funds made available under this title shall be used to hire contractors to calculate the apportionments of funds to States.

‘(f) Transfer of Highway and Transit Funds-

‘(1) TRANSFER OF HIGHWAY FUNDS FOR TRANSIT PROJECTS-

‘(A) IN GENERAL- Subject to subparagraph (B), amounts made available for transit projects or transportation planning under this title may be transferred to and administered by the Secretary in accordance with chapter 53 of title 49.

‘(B) NON-FEDERAL SHARE- The provisions of this title relating to the non-Federal share shall apply to the amounts transferred under subparagraph (A).

‘(2) TRANSFER OF TRANSIT FUNDS FOR HIGHWAY PROJECTS-

‘(A) IN GENERAL- Subject to subparagraph (B), amounts made available for highway projects or transportation planning under chapter 53 of title 49 may be transferred to and administered by the Secretary in accordance with this title.

‘(B) NON-FEDERAL SHARE- The provisions of chapter 53 of title 49 relating to the non-Federal share shall apply to amounts transferred under subparagraph (A).

‘(3) TRANSFER OF FUNDS AMONG STATES OR TO FEDERAL HIGHWAY ADMINISTRATION-

‘(A) IN GENERAL- Subject to subparagraph (B), the Secretary may, at the request of a State, transfer amounts apportioned or allocated under this title to the State to another State, or to the Federal Highway Administration, for the purpose of funding 1 or more projects that are eligible for assistance with amounts so apportioned or allocated.

‘(B) APPORTIONMENT- The transfer shall have no effect on any apportionment of amounts to a State under this section.

‘(C) FUNDS SUBALLOCATED TO URBANIZED AREAS- Amounts that are apportioned or allocated to a State under subsection (b)(3) (as in effect on the day before the date of enactment of the MAP-21) or subsection (b)(2) and attributed to an urbanized area of a State with a population of more than 200,000 individuals under section 133(d) may be transferred under this paragraph only if the metropolitan planning organization designated for the area concurs, in writing, with the transfer request.

‘(4) TRANSFER OF OBLIGATION AUTHORITY- Obligation authority for amounts transferred under this subsection shall be transferred in the same manner and amount as the amounts for the projects that are transferred under this section.’

‘(g) Report to Congress- For each fiscal year, the Secretary shall make available to the public, in a user-friendly format via the Internet, a report that describes--

‘(1) the amount obligated, by each State, for Federal-aid highways and highway safety construction programs during the preceding fiscal year;

‘(2) the balance, as of the last day of the preceding fiscal year, of the unobligated apportionment of each State by fiscal year under this section;

‘(3) the balance of unobligated sums available for expenditure at the discretion of the Secretary for such highways and programs for the fiscal year; and

‘(4) the rates of obligation of funds apportioned or set aside under this section, according to--

‘(A) program;

‘(B) funding category of subcategory;

‘(C) type of improvement;

‘(D) State; and

‘(E) sub-State geographical area, including urbanized and rural areas, on the basis of the population of each such area.’.

(b) Conforming Amendment- Section 146(a) of title 23, United States Code, is amended by striking ‘sections 104(b)(l) and 104(b)(3)’ and inserting ‘section 104(b)(2)’.

SEC. 1106. NATIONAL HIGHWAY PERFORMANCE PROGRAM.

(a) In General- Section 119 of title 23, United States Code, is amended to read as follows:

‘Sec. 119. National highway performance program

‘(a) Establishment- The Secretary shall establish and implement a national highway performance program under this section.

‘(b) Purposes- The purposes of the national highway performance program shall be--

‘(1) to provide support for the condition and performance of the National Highway System; and

‘(2) to ensure that investments of Federal-aid funds in highway construction are directed to support progress toward the achievement of performance targets for infrastructure condition and performance.

‘(c) Eligible Facilities- Except as provided in subsection (d), to be eligible for funding apportioned under section 104(b)(1) to carry out this section, a facility shall be located on the National Highway System, as defined in section 103.

‘(d) Eligible Projects- Funds apportioned to a State to carry out the national highway performance program may be obligated only for a project on an eligible facility that is--

‘(1) a project, or is part of a program of projects, supporting progress toward the achievement of national performance goals for improving infrastructure condition, safety, mobility, or freight movement on the National Highway System and consistent with sections 134 and 135; and

‘(2) for 1 or more of the following purposes:

‘(A) Construction, reconstruction, resurfacing, restoration, rehabilitation, preservation, or operational improvement of segments of the National Highway System.

‘(B) Construction, replacement (including replacement with fill material), rehabilitation, preservation, and protection (including scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) of bridges on the National Highway System.

‘(C) Construction, replacement (including replacement with fill material), rehabilitation, preservation, and protection (including impact protection measures, security countermeasures, and protection against extreme events) of tunnels on the National Highway System.

‘(D) Inspection and evaluation, as described in section 144, of bridges and tunnels on the National Highway System, and inspection and evaluation of other highway infrastructure assets on the National Highway System, including signs and sign structures, earth retaining walls, and drainage structures.

‘(E) Training of bridge and tunnel inspectors, as described in section 144.

‘(F) Construction, rehabilitation, or replacement of existing ferry boats and ferry boat facilities, including approaches, that connect road segments of the National Highway System.

‘(G) Construction, reconstruction, resurfacing, restoration, rehabilitation, and preservation of, and operational improvements for, a Federal-aid highway not on the National Highway System, and construction of a transit project eligible for assistance under chapter 53 of title 49, if--

‘(i) the highway project or transit project is in the same corridor as, and in proximity to, a fully access-controlled highway designated as a part of the National Highway System;

‘(ii) the construction or improvements will reduce delays or produce travel time savings on the fully access-controlled highway described in clause (i) and improve regional traffic flow; and

‘(iii) the construction or improvements are more cost-effective, as determined by benefit-cost analysis, than an improvement to the fully access-controlled highway described in clause (i).

‘(H) Bicycle transportation and pedestrian walkways in accordance with section 217.

‘(I) Highway safety improvements for segments of the National Highway System.

‘(J) Capital and operating costs for traffic and traveler information monitoring, management, and control facilities and programs.

‘(K) Development and implementation of a State asset management plan for the National Highway System in accordance with this section, including data collection, maintenance, and integration and the cost associated with obtaining, updating, and licensing software and equipment required for risk-based asset management and performance-based management.

‘(L) Infrastructure-based intelligent transportation systems capital improvements.

‘(M) Environmental restoration and pollution abatement in accordance with section 328.

‘(N) Control of noxious weeds and aquatic noxious weeds and establishment of native species in accordance with section 329.

‘(O) In accordance with all applicable Federal law (including regulations), participation in natural habitat and wetlands mitigation efforts relating to projects funded under this title, which may include participation in natural habitat and wetlands mitigation banks, contributions to statewide and regional efforts to conserve, restore, enhance, and create natural habitats and wetlands, and development of statewide and regional natural habitat and wetlands conservation and mitigation plans, including any such banks, efforts, and plans developed in accordance with applicable Federal law (including regulations), on the conditions that--

‘(i) contributions to those mitigation efforts may--

‘(I) take place concurrent with or in advance of project construction; and

‘(II) occur in advance of project construction only if the efforts are consistent with all applicable requirements of Federal law (including regulations) and State transportation planning processes; and

‘(ii) with respect to participation in a natural habitat or wetland mitigation effort relating to a project funded under this title that has an impact that occurs within the service area of a mitigation bank, preference is given, to the maximum extent practicable, to the use of the mitigation bank if the bank contains sufficient available credits to offset the impact and the bank is approved in accordance with applicable Federal law (including regulations).

‘(P) Replacement (including replacement with fill material), rehabilitation, preservation, and protection (including scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) of bridges on Federal-aid highways (other than on the National Highway System).

‘(e) Limitation on New Capacity-

‘(1) IN GENERAL- Except as provided in paragraph (2), the maximum amount that a State may obligate under this section for projects under subparagraphs (G) and (P) of subsection (d)(2) and that is attributable to the portion of the cost of any project undertaken to expand the capacity of eligible facilities on the National Highway System, in a case in which the new capacity consists of 1 or more new travel lanes that are not high-occupancy vehicle lanes, shall not, in total, exceed 40 percent of the combined apportionments of a State under section 104(b)(1) for the most recent 3 consecutive years.

‘(2) EXCEPTION- Paragraph (1) shall not apply to a project for the construction of auxiliary lanes and turning lanes or widening of a bridge during rehabilitation or replacement to meet current geometric, construction, and structural standards for the types and volumes of projected traffic over the design life of the project.

‘(f) State Performance Management-

‘(1) IN GENERAL- A State shall develop a risk-based asset management plan for the National Highway System to improve or preserve asset condition and system performance.

‘(2) PERFORMANCE DRIVEN PLAN- A State asset management plan shall include strategies leading to a program of projects that would make progress toward achievement of the State targets for asset condition and performance of the National Highway System in accordance with paragraph (5) and supporting the progress toward the achievement of the national goals identified in section 150.

‘(3) PLAN CONTENTS- A State asset management plan shall, at a minimum, be in a form that the Secretary determines to be appropriate and include--

‘(A) a summary listing of the pavement and bridge assets on the National Highway System in the State, including a description of the condition of those assets;

‘(B) asset management objectives and measures;

‘(C) performance gap identification;

‘(D) lifecycle cost and risk management analysis;

‘(E) a financial plan; and

‘(F) investment strategies.

‘(4) STANDARDS AND MEASURES-

‘(A) IN GENERAL- Subject to subparagraph (B), not later than 18 months after the date of enactment of the MAP-21, the Secretary shall, in consultation with State departments of transportation and other stakeholders, establish--

‘(i) minimum standards for States to use in developing and operating pavement management systems and bridge management systems;

‘(ii) measures for States to use to assess--

‘(I) the condition of pavements on the Interstate system;

‘(II) the condition of pavements on the National Highway System (excluding the Interstate);

‘(III) the condition of bridges on the National Highway System;

‘(IV) the performance of the Interstate System; and

‘(V) the performance of the National Highway System (excluding the Interstate System);

‘(iii) the data elements that are necessary to collect and maintain data, and a standardized process for collection and sharing of data with appropriate governmental entities at the Federal, State, and local levels (including metropolitan planning organizations), to carry out paragraph (5); and

‘(iv) minimum levels for--

‘(I) the condition of pavement on the Interstate System; and

‘(II) the condition of bridges on the National Highway System.

‘(B) STATE PARTICIPATION- In carrying out subparagraph (A), the Secretary shall--

‘(i) provide States not less than 90 days to comment on any regulation proposed by the Secretary under that subparagraph; and

‘(ii) take into consideration any comments of the States relating to a proposed regulation received during that comment period.

‘(5) STATE PERFORMANCE TARGETS-

‘(A) ESTABLISHMENT OF TARGETS- Not later than 1 year after the date on which the Secretary promulgates final regulations under paragraph (4), each State, in consultation with metropolitan planning organizations, shall establish targets that address each of the performance measures identified in paragraph (4)(A)(ii).

‘(B) PERIODIC UPDATES- Each State shall periodically update the targets established under subparagraph (A).

‘(6) REQUIREMENT FOR PLAN- To obligate funding apportioned under section 104(b)(1), each State shall have in effect--

‘(A) a risk-based asset management plan for the National Highway System in accordance with this section, developed through a process defined and approved by the Secretary; and

‘(B) State targets that address the performance measures identified in paragraph (4)(B).

‘(7) CERTIFICATION OF PLAN DEVELOPMENT PROCESS-

‘(A) IN GENERAL- Not later than 90 days after the date on which a State submits a request for approval of the process used by the State to develop the State asset management plan for the National Highway System, the Secretary shall--

‘(i) review the process; and

‘(ii)(I) certify that the process meets the requirements established by the Secretary; or

‘(II) deny certification and specify actions necessary for the State to take to correct deficiencies in the State process.

‘(B) RECERTIFICATION- Not less often than every 4 years, the Secretary shall review and recertify that the process used by a State to develop and maintain the State asset management plan for the National Highway System meets the requirements for the process, as established by the Secretary.

‘(C) OPPORTUNITY TO CURE- If the Secretary denies certification under subparagraph (A), the Secretary shall provide the State with--

‘(i) not less than 90 days to cure the deficiencies of the plan, during which time period all penalties and other legal impacts of a denial of certification shall be stayed; and

‘(ii) a written statement of the specific actions the Secretary determines to be necessary for the State to cure the plan.

‘(8) PERFORMANCE REPORTS-

‘(A) IN GENERAL- Not later than 4 years after the date of enactment of the MAP-21 and biennially thereafter, a State shall submit to the Secretary a report that describes--

‘(i) the condition and performance of the National Highway System in the State;

‘(ii) progress in achieving State targets for each of the performance measures for the National Highway System; and

‘(iii) the effectiveness of the investment strategy documented in the State asset management plan for the National Highway System.

‘(B) FAILURE TO ACHIEVE TARGETS- A State that does not achieve or make significant progress toward achieving the targets of the State for performance measures described in subparagraph (A)(ii) for 2 consecutive reports submitted under this paragraph shall include in the next report submitted a description of the actions the State will undertake to achieve the targets.

‘(9) PROCESS- Not later than 18 months after the date of enactment of the MAP-21, the Secretary shall, by regulation and in consultation with State departments of transportation, establish the process to develop the State asset management plan described in paragraph (1) and establish the standards and measures described in paragraph (4).

‘(g) Interstate System and NHS Bridge Conditions-

‘(1) CONDITION OF INTERSTATE SYSTEM-

‘(A) PENALTY- If, during 2 consecutive reporting periods, the condition of the Interstate System, excluding bridges on the Interstate System, in a State falls below the minimum condition level established by the Secretary under subsection (f)(4)(A)(iv), the State shall be required, during the following fiscal year--

‘(i) to obligate, from the amounts apportioned to the State under section 104(b)(1), an amount that is not less than the amount of funds apportioned to the State for fiscal year 2009 under the Interstate maintenance program for the purposes described in this section (as in effect on the day before the date of enactment of the MAP-21), except that for each year after fiscal year 2013, the amount required to be obligated under this clause shall be increased by 2 percent over the amount required to be obligated in the previous fiscal year; and

‘(ii) to transfer, from the amounts apportioned to the State under section 104(b)(2) (other than amounts suballocated to metropolitan areas and other areas of the State under section 133(d)) to the apportionment of the State under section 104(b)(1), an amount equal to 10 percent of the amount of funds apportioned to the State for fiscal year 2009 under the Interstate maintenance program for the purposes described in this section (as in effect on the day before the date of enactment of the MAP-21).

‘(B) RESTORATION- The obligation requirement for the Interstate System in a State required by subparagraph (A) for a fiscal year shall remain in effect for each subsequent fiscal year until such time as the condition of the Interstate System in the State exceeds the minimum condition level established by the Secretary under subsection (f)(4)(A)(iv).

‘(2) CONDITION OF NHS BRIDGES-

‘(A) PENALTY- If, during 2 consecutive reporting periods, the condition of bridges on the National Highway System in a State falls below the minimum condition level established by the Secretary under subsection (f)(4)(A)(iv), the State shall be required, during the following fiscal year--

‘(i) to obligate, from the amounts apportioned to the State under section 104(b)(1), an amount for bridges on the National Highway System that is not less than 50 percent of the amount of funds apportioned to the State for fiscal year 2009 under the highway bridge program for the purposes described in section 144 (as in effect on the day before the date of enactment of the MAP-21), except that for each year after fiscal year 2013, the amount required to be obligated under this clause shall be increased by 2 percent over the amount required to be obligated in the previous fiscal year; and

‘(ii) to transfer, from the amounts apportioned to the State under section 104(b)(2) (other than amounts suballocated to metropolitan areas and other areas of the State under section 133(d)) to the apportionment of the State under section 104(b)(1), an amount equal to 10 percent of the amount of funds apportioned to the State for fiscal year 2009 under the highway bridge program for the purposes described in section 144 (as in effect on the day before the date of enactment of the MAP-21).

‘(B) RESTORATION- The obligation requirement for bridges on the National Highway System in a State required by subparagraph (A) for a fiscal year shall remain in effect for each subsequent fiscal year until such time as the condition of bridges on the National Highway System in the State exceeds the minimum condition level established by the Secretary under subsection (f)(4)(A)(iv).’.

(b) Transition Period-

(1) IN GENERAL- Except as provided in paragraph (2), until such date as a State has in effect an approved asset management plan and has established performance targets as described in section 119 of title 23, United States Code, that will contribute to achieving the national goals for the condition and performance of the National Highway System, but not later than 18 months after the date on which the Secretary promulgates final regulations required under section 119(f)(4) of that title, the Secretary shall approve obligations of funds apportioned to a State to carry out the national highway performance program under section 119 of that title, for projects that otherwise meet the requirements of that section.

(2) EXTENSION- The Secretary may extend the transition period for a State under paragraph (1) if the Secretary determines that the State has made a good faith effort to establish an asset management plan and performance targets referred to in that paragraph.

(c) Conforming Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 119 and inserting the following:

‘119. National highway performance program.’.

SEC. 1107. EMERGENCY RELIEF.

Section 125 of title 23, United States Code, is amended to read as follows:

‘Sec. 125. Emergency relief

‘(a) In General- Subject to this section and section 120, an emergency fund is authorized for expenditure by the Secretary for the repair or reconstruction of highways, roads, and trails, in any area of the United States, including Indian reservations, that the Secretary finds have suffered serious damage as a result of--

‘(1) a natural disaster over a wide area, such as by a flood, hurricane, tidal wave, earthquake, severe storm, or landslide; or

‘(2) catastrophic failure from any external cause.

‘(b) Restriction on Eligibility-

‘(1) DEFINITION OF CONSTRUCTION PHASE- In this subsection, the term ‘construction phase’ means the phase of physical construction of a highway or bridge facility that is separate from any other identified phases, such as planning, design, or right-of-way phases, in the State transportation improvement program.

‘(2) RESTRICTION- In no case shall funds be used under this section for the repair or reconstruction of a bridge--

‘(A) that has been permanently closed to all vehicular traffic by the State or responsible local official because of imminent danger of collapse due to a structural deficiency or physical deterioration; or

‘(B) if a construction phase of a replacement structure is included in the approved Statewide transportation improvement program at the time of an event described in subsection (a).

‘(c) Funding-

‘(1) IN GENERAL- Subject to the limitations described in paragraph (2), there are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) such sums as are necessary to establish the fund authorized by this section and to replenish that fund on an annual basis.

‘(2) LIMITATIONS- The limitations referred to in paragraph (1) are that--

‘(A) not more than $100,000,000 is authorized to be obligated in any 1 fiscal year commencing after September 30, 1980, to carry out this section, except that, if for any fiscal year the total of all obligations under this section is less than the amount authorized to be obligated for the fiscal year, the unobligated balance of that amount shall--

‘(i) remain available until expended; and

‘(ii) be in addition to amounts otherwise available to carry out this section for each year; and

‘(B)(i) pending such appropriation or replenishment, the Secretary may obligate from any funds appropriated at any time for obligation in accordance with this title, including existing Federal-aid appropriations, such sums as are necessary for the immediate prosecution of the work herein authorized; and

‘(ii) funds obligated under this subparagraph shall be reimbursed from the appropriation or replenishment.

‘(d) Eligibility-

‘(1) IN GENERAL- The Secretary may expend funds from the emergency fund authorized by this section only for the repair or reconstruction of highways on Federal-aid highways in accordance with this chapter, except that--

‘(A) no funds shall be so expended unless an emergency has been declared by the Governor of the State with concurrence by the Secretary, unless the President has declared the emergency to be a major disaster for the purposes of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) for which concurrence of the Secretary is not required; and

‘(B) the Secretary has received an application from the State transportation department that includes a comprehensive list of all eligible project sites and repair costs by not later than 2 years after the natural disaster or catastrophic failure.

‘(2) COST LIMITATION-

‘(A) DEFINITION OF COMPARABLE FACILITY- In this paragraph, the term ‘comparable facility’ means a facility that meets the current geometric and construction standards required for a facility of comparable capacity and character to the destroyed facility, except a bridge facility which may be constructed for the type and volume of traffic that the bridge will carry over its design life.

‘(B) LIMITATION- The total cost of a project funded under this section may not exceed the cost of repair or reconstruction of a comparable facility.

‘(3) TERRITORIES- The total obligations for projects under this section for any fiscal year in the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands shall not exceed $20,000,000.

‘(4) SUBSTITUTE TRAFFIC- Notwithstanding any other provision of this section, actual and necessary costs of maintenance and operation of ferryboats or additional transit service providing temporary substitute highway traffic service, less the amount of fares charged for comparable service, may be expended from the emergency fund authorized by this section for Federal-aid highways.

‘(e) Tribal Transportation Facilities, Federal Lands Transportation Facilities, and Public Roads on Federal Lands-

‘(1) DEFINITION OF OPEN TO PUBLIC TRAVEL- In this subsection, the term ‘open to public travel’ means, with respect to a road, that, except during scheduled periods, extreme weather conditions, or emergencies, the road is open to the general public for use with a standard passenger vehicle, without restrictive gates or prohibitive signs or regulations, other than for general traffic control or restrictions based on size, weight, or class of registration.

‘(2) EXPENDITURE OF FUNDS- Notwithstanding subsection (d)(1), the Secretary may expend funds from the emergency fund authorized by this section, independently or in cooperation with any other branch of the Federal Government, a State agency, a tribal government, an organization, or a person, for the repair or reconstruction of tribal transportation facilities, Federal lands transportation facilities, and other federally owned roads that are open to public travel, whether or not those facilities are Federal-aid highways.

‘(3) REIMBURSEMENT-

‘(A) IN GENERAL- The Secretary may reimburse Federal and State agencies (including political subdivisions) for expenditures made for projects determined eligible under this section, including expenditures for emergency repairs made before a determination of eligibility.

‘(B) TRANSFERS- With respect to reimbursements described in subparagraph (A)--

‘(i) those reimbursements to Federal agencies and Indian tribal governments shall be transferred to the account from which the expenditure was made, or to a similar account that remains available for obligation; and

‘(ii) the budget authority associated with the expenditure shall be restored to the agency from which the authority was derived and shall be available for obligation until the end of the fiscal year following the year in which the transfer occurs.

‘(f) Treatment of Territories- For purposes of this section, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands shall be considered to be States and parts of the United States, and the chief executive officer of each such territory shall be considered to be a Governor of a State.

‘(g) Protecting Public Safety and Maintaining Roadways- The Secretary may use amounts from the emergency fund authorized by this section to carry out projects that the Secretary determines are necessary to protect public safety or to maintain or protect roadways that have been included within the scope of a prior emergency declaration in order to maintain the continuation of roadway services on roads that are threatened by continuous or frequent flooding.’.

SEC. 1108. TRANSPORTATION MOBILITY PROGRAM.

(a) In General- Section 133 of title 23, United States Code, is amended to read as follows:

‘Sec. 133. Transportation mobility program

‘(a) Establishment- The Secretary shall establish and implement a transportation mobility program under this section.

‘(b) Purpose- The purpose of the transportation mobility program shall be to assist States and localities in improving the conditions and performance on Federal-aid highways and on bridges on any public road.

‘(c) Eligible Projects- Funds apportioned under section 104(b)(2) to carry out the transportation mobility program may be obligated for any of following purposes:

‘(1) Construction, reconstruction, rehabilitation, resurfacing, restoration, preservation, or operational improvements for highways, including construction of designated routes of the Appalachian development highway system and local access roads under section 14501 of title 40, United States Code.

‘(2) Replacement (including replacement with fill material), rehabilitation, preservation, protection (including painting, scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) and application of calcium magnesium acetate, sodium acetate/formate, or other environmentally acceptable, minimally corrosive anti-icing and deicing compositions for bridges (and approaches to bridges and other elevated structures) and tunnels on public roads of all functional classifications, including any such construction or reconstruction necessary to accommodate other transportation modes.

‘(3) Construction of a new bridge or tunnel on a new location on a highway, including any such construction necessary to accommodate other transportation modes.

‘(4) Inspection and evaluation (within the meaning of section 144) of bridges and tunnels on public roads of all functional classifications and inspection and evaluation of other highway infrastructure assets, including signs and sign structures, retaining walls, and drainage structures.

‘(5) Training of bridge and tunnel inspectors (within the meaning of section 144).

‘(6) Capital costs for transit projects eligible for assistance under chapter 53 of title 49, including vehicles and facilities, whether publicly or privately owned, that are used to provide intercity passenger service by bus.

‘(7) Carpool projects, fringe and corridor parking facilities and programs, including electric vehicle infrastructure in accordance with section 137, bicycle transportation and pedestrian walkways in accordance with section 217, and the modification of public sidewalks to comply with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).

‘(8) Highway and transit safety infrastructure improvements and programs, installation of safety barriers and nets on bridges, hazard eliminations, projects to mitigate hazards caused by wildlife, and railway-highway grade crossings.

‘(9) Highway and transit research and development and technology transfer programs.

‘(10) Capital and operating costs for traffic and traveler information monitoring, management, and control facilities and programs, including truck stop electrification systems.

‘(11) Projects and strategies designed to support congestion pricing, including electronic toll collection and travel demand management strategies and programs.

‘(12) Surface transportation planning.

‘(13) Transportation enhancement activities.

‘(14) Recreational trails projects eligible for funding under section 206.

‘(15) Construction of ferry boats and ferry terminal facilities eligible for funding under section 129(c).

‘(16) Border infrastructure projects eligible for funding under section 1303 of the SAFETEA-LU (Public Law 109-59).

‘(17) Projects, programs, and technical assistance associated with National Scenic Byways, All-American Roads, and America’s Byways eligible for funding under section 162.

‘(18) Truck parking facilities eligible for funding under section 1401 of the MAP-21.

‘(19) Safe routes to school projects eligible for funding under section 1404 of the SAFETEA-LU (23 U.S.C. 402 note; Public Law 109-59).

‘(20) Transportation control measures described in section 108(f)(1)(A) of the Clean Air Act (42 U.S.C. 7408(f)(1)(A)), other than section 108(f)(1)(A)(xvi) of that Act.

‘(21) Development and implementation of a State asset management plan for the National Highway System in accordance with section 119, including data collection, maintenance, and integration and the costs associated with obtaining, updating, and licensing software and equipment required for risk-based asset management and performance-based management, and for similar activities relating to the development and implementation of a performance-based management program for other public roads.

‘(22) In accordance with all applicable Federal law (including regulations), participation in natural habitat and wetlands mitigation efforts relating to projects funded under this title, which may include participation in natural habitat and wetlands mitigation banks, contributions to statewide and regional efforts to conserve, restore, enhance, and create natural habitats and wetlands, and development of statewide and regional natural habitat and wetlands conservation and mitigation plans, including any such banks, efforts, and plans developed in accordance with applicable Federal law (including regulations), on the conditions that--

‘(A) contributions to those mitigation efforts may--

‘(i) take place concurrent with or in advance of project construction; and

‘(ii) occur in advance of project construction only if the efforts are consistent with all applicable requirements of Federal law (including regulations) and State transportation planning processes; and

‘(B) with respect to participation in a natural habitat or wetland mitigation effort relating to a project funded under this title that has an impact that occurs within the service area of a mitigation bank, preference is given, to the maximum extent practicable, to the use of the mitigation bank if the bank contains sufficient available credits to offset the impact and the bank is approved in accordance with applicable Federal law (including regulations).

‘(23) Infrastructure-based intelligent transportation systems capital improvements.

‘(24) Environmental restoration and pollution abatement in accordance with section 328.

‘(25) Control of noxious weeds and aquatic noxious weeds and establishment of native species in accordance with section 329.

‘(26) Improvements to a freight railroad, marine highway, or intermodal facility, but only to the extent that the Secretary concurs with the State that--

‘(A) the project will make significant improvement to freight movements on the national freight network;

‘(B) the public benefit of the project exceeds the Federal investment; and

‘(C) the project provides a better return than a highway project on a segment of the primary freight network, except that a State may not obligate in excess of 5 percent of funds apportioned to the State under section 104(b)(2) to carry out this section for that purpose.

‘(27) Maintenance of and improvements to all public roads, including non-State-owned public roads and roads on tribal land--

‘(A) that are located within 10 miles of the international border between the United States and Canada or Mexico; and

‘(B) on which federally owned vehicles comprise more than 50 percent of the traffic.

‘(28) Construction, reconstruction, resurfacing, restoration, rehabilitation, and preservation of, and operational improvements for, any public road if--

‘(A) the public road, and the highway project to be carried out with respect to the public road, are in the same corridor as, and in proximity to--

‘(i) a fully access-controlled highway designated as a part of the National Highway System; or

‘(ii) in areas with a population of less than 200,000, a federal-aid highway designated as part of the National Highway System;

‘(B) the construction or improvements will enhance the level of service on the highway described in subparagraph (A) and improve regional traffic flow; and

‘(C) the construction or improvements are more cost-effective, as determined by benefit-cost analysis, than an improvement to the highway described in subparagraph (A).

‘(d) Allocations of Apportioned Funds to Areas Based on Population-

‘(1) CALCULATION- Of the funds apportioned to a State under section 104(b)(2)--

‘(A) 50 percent for a fiscal year shall be obligated under this section, in proportion to their relative shares of the population of the State--

‘(i) in urbanized areas of the State with an urbanized area population of over 200,000;

‘(ii) in areas of the State other than urban areas with a population greater than 5,000; and

‘(iii) in other areas of the State; and

‘(B) 50 percent may be obligated in any area of the State.

‘(2) METROPOLITAN AREAS- Funds attributed to an urbanized area under subparagraph (A)(i) may be obligated in the metropolitan area established under section 134 that encompasses the urbanized area.

‘(3) DISTRIBUTION AMONG URBANIZED AREAS OF OVER 200,000 POPULATION-

‘(A) IN GENERAL- Except as provided in subparagraph (B), the amount of funds that a State is required to obligate under paragraph (1)(A)(i) shall be obligated in urbanized areas described in paragraph (1)(A)(i) based on the relative population of the areas.

‘(B) OTHER FACTORS- The State may obligate the funds described in subparagraph (A) based on other factors if the State and the relevant metropolitan planning organizations jointly apply to the Secretary for the permission to base the obligation on other factors and the Secretary grants the request.

‘(e) Location of Projects- Except as provided in subsection (g) and for projects described in paragraphs (2), (4), (7), (8), (13), (14), and (19) of subsection (c), for local access roads under section 14501 of title 40, United States Code, transportation mobility program projects may not be undertaken on roads functionally classified as local or rural minor collectors.

‘(f) Applicability of Planning Requirements- Programming and expenditure of funds for projects under this section shall be consistent with sections 134 and 135.

‘(g) Bridges Not on Federal-aid Highways-

‘(1) DEFINITION OF OFF-SYSTEM BRIDGE- The term ‘off-system bridge’ means a highway bridge located on a public road, other than a bridge on a Federal-aid highway.

‘(2) SPECIAL RULE-

‘(A) SET-ASIDE- Of the amounts apportioned to a State for fiscal year 2012 and each fiscal year thereafter under this section, the State shall obligate for activities described in subsection (c)(2) for off-system bridges an amount that is not less than 15 percent of the amount of funds apportioned to the State for the highway bridge program for fiscal year 2009.

‘(B) REDUCTION OF EXPENDITURES- The Secretary, after consultation with State and local officials, may reduce the requirement for expenditures for off-system bridges under subparagraph (A) with respect to the State if the Secretary determines that the State has inadequate needs to justify the expenditure.

‘(3) CREDIT FOR BRIDGES NOT ON FEDERAL-AID HIGHWAYS- Notwithstanding any other provision of law, with respect to any project not on a Federal-aid highway for the replacement of a bridge or rehabilitation of a bridge that is wholly funded from State and local sources, is eligible for Federal funds under this section, is noncontroversial, is certified by the State to have been carried out in accordance with all standards applicable to such projects under this section, and is determined by the Secretary upon completion to be no longer a deficient bridge--

‘(A) any amount expended after the date of enactment of this subsection from State and local sources for the project in excess of 20 percent of the cost of construction of the project may be credited to the non-Federal share of the cost of other bridge projects in the State that are eligible for Federal funds under this section; and

‘(B) that crediting shall be conducted in accordance with procedures established by the Secretary.’

‘(h) Administration-

‘(1) SUBMISSION OF PROJECT AGREEMENT- For each fiscal year, each State shall submit a project agreement that--

‘(A) certifies that the State will meet all the requirements of this section; and

‘(B) notifies the Secretary of the amount of obligations needed to carry out the program under this section.

‘(2) REQUEST FOR ADJUSTMENTS OF AMOUNTS- Each State shall request from the Secretary such adjustments to the amount of obligations referred to in paragraph (1)(B) as the State determines to be necessary.

‘(3) EFFECT OF APPROVAL BY THE SECRETARY- Approval by the Secretary of a project agreement under paragraph (1) shall be deemed a contractual obligation of the United States to pay transportation mobility program funds made available under this title.

‘(i) Obligation Authority-

‘(1) IN GENERAL- A State that is required to obligate, in an urbanized area with an urbanized area population of over 200,000 individuals under subsection (d), funds apportioned to the State under section 104(b)(2) shall make available during the fiscal year an amount of obligation authority distributed to the State for Federal-aid highways and highway safety construction programs for use in the area that is equal to the product obtained by multiplying--

‘(A) the aggregate amount of funds that the State is required to obligate in the area under subsection (d) during the period; and

‘(B) the ratio that--

‘(i) the aggregate amount of obligation authority distributed to the State for Federal-aid highways and highway safety construction programs during the period; bears to

‘(ii) the total of the sums apportioned to the State for Federal-aid highways and highway safety construction programs (excluding sums not subject to an obligation limitation) during the period.

‘(2) JOINT RESPONSIBILITY- Each State, each affected metropolitan planning organization, and the Secretary shall jointly ensure compliance with paragraph (1).’.

(b) Conforming Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 133 and inserting the following:

‘133. Transportation mobility program.’.

SEC. 1109. WORKFORCE DEVELOPMENT.

(a) On-the-job Training- Section 140(b) of title 23, United States Code, is amended--

(1) by striking ‘Whenever apportionments are made under section 104(b)(3),’ and inserting ‘From administrative funds made available under section 104(a),’; and

(2) by striking ‘the surface transportation program under section 104(b) and the bridge program under section 144’ and inserting ‘the transportation mobility program under section 104(b)’.

(b) Disadvantaged Business Enterprise- Section 140(c) of title 23, United States Code, is amended by striking ‘Whenever apportionments are made under section 104(b)(3),’ and inserting ‘From administrative funds made available under section 104(a),’.

SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.

Section 143 of title 23, United States Code, is amended--

(1) in subsection (b)--

(A) by striking paragraph (2) and inserting the following:

‘(2) FUNDING-

‘(A) IN GENERAL- From administrative funds made available under section 104(a), the Secretary shall deduct such sums as are necessary, not to exceed $10,000,000 for each of fiscal years 2012 and 2013, to carry out this section.

‘(B) ALLOCATION OF FUNDS- Funds made available to carry out this section may be allocated to the Internal Revenue Service and the States at the discretion of the Secretary, except that of funds so made available for each fiscal year, $2,000,000 shall be available only to carry out intergovernmental enforcement efforts, including research and training.’; and

(B) in paragraph (8)--

(i) in the paragraph heading by striking ‘SURFACE TRANSPORTATION PROGRAM’ and inserting ‘TRANSPORTATION MOBILITY PROGRAM’; and

(ii) by striking ‘section 104(b)(3)’ and inserting ‘section 104(b)(2)’; and

(2) in subsection (c)(3) by striking ‘for each of fiscal years 2005 through 2009,’ and inserting ‘for each fiscal year,’.

SEC. 1111. NATIONAL BRIDGE AND TUNNEL INVENTORY AND INSPECTION STANDARDS.

(a) In General- Section 144 of title 23, United States Code, is amended to read as follows:

‘Sec. 144. National bridge and tunnel inventory and inspection standards

‘(a) Findings and Declarations-

‘(1) FINDINGS- Congress finds that--

‘(A) the condition of the bridges of the United States has improved since the date of enactment of the Transportation Equity Act for the 21st Century (Public Law 105-178; 112 Stat. 107), yet continued improvement to bridge conditions is essential to protect the safety of the traveling public and allow for the efficient movement of people and goods on which the economy of the United States relies; and

‘(B) the systematic preventative maintenance of bridges, and replacement and rehabilitation of deficient bridges, should be undertaken through an overall asset management approach to transportation investment.

‘(2) DECLARATIONS- Congress declares that it is in the vital interest of the United States--

‘(A) to inventory, inspect, and improve the condition of the highway bridges and tunnels of the United States;

‘(B) to use a data-driven, risk-based approach and cost-effective strategy for systematic preventative maintenance, replacement, and rehabilitation of highway bridges and tunnels to ensure safety and extended service life;

‘(C) to use performance-based bridge management systems to assist States in making timely investments;

‘(D) to ensure accountability and link performance outcomes to investment decisions; and

‘(E) to ensure connectivity and access for residents of rural areas of the United States through strategic investments in National Highway System bridges and bridges on all public roads.

‘(b) National Bridge and Tunnel Inventories-

‘(1) IN GENERAL- The Secretary, in consultation with the States, shall--

‘(A) inventory all highway bridges on public roads that are bridges over waterways, other topographical barriers, other highways, and railroads;

‘(B) classify the bridges according to serviceability, safety, and essentiality for public use, including the potential impacts to emergency evacuation routes and to regional and national freight and passenger mobility if the serviceability of the bridge is restricted or diminished; and

‘(C) based on that classification, assign each a risk-based priority for systematic preventative maintenance, replacement, or rehabilitation.

‘(2) TRIBALLY OWNED AND FEDERALLY OWNED BRIDGES- As part of the activities carried out under paragraph (1), the Secretary, in consultation with the Secretaries of appropriate Federal agencies, shall--

‘(A) inventory all tribally owned and Federally owned highway bridges that are open to the public, over waterways, other topographical barriers, other highways, and railroads;

‘(B) classify the bridges according to serviceability, safety, and essentiality for public use; and

‘(C) based on the classification, assign each a risk-based priority for systematic preventative maintenance, replacement, or rehabilitation.

‘(3) TUNNELS- The Secretary shall establish a national inventory of highway tunnels reflecting the findings of the most recent highway tunnel inspections conducted by States under this section.

‘(c) General Bridge Authority-

‘(1) IN GENERAL- Except as provided in paragraph (2) and notwithstanding any other provision of law, the General Bridge Act of 1946 (33 U.S.C. 525 et seq.) shall apply to bridges authorized to be replaced, in whole or in part, by this title.

‘(2) EXCEPTION- Section 502(b) of the General Bridge Act of 1946 (33 U.S.C. 525(b)) and section 9 of the Act of March 3, 1899 (33 U.S.C. 401), shall not apply to any bridge constructed, reconstructed, rehabilitated, or replaced with assistance under this title, if the bridge is over waters that--

‘(A) are not used and are not susceptible to use in the natural condition of the bridge or by reasonable improvement as a means to transport interstate or foreign commerce; and

‘(B) are--

‘(i) not tidal; or

‘(ii) if tidal, used only by recreational boating, fishing, and other small vessels that are less than 21 feet in length.

‘(d) Inventory Updates and Reports-

‘(1) IN GENERAL- The Secretary shall--

‘(A) annually revise the inventories authorized by subsection (b); and

‘(B) submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on the inventories.

‘(2) INSPECTION REPORT- Not later than 1 year after the date of enactment of the MAP-21, each State and appropriate Federal agency shall report element level data to the Secretary, as each bridge is inspected pursuant to this section, for all highway bridges on the National Highway System.

‘(3) GUIDANCE- The Secretary shall provide guidance to States and Federal agencies for implementation of this subsection, while respecting the existing inspection schedule of each State.

‘(4) BRIDGES NOT ON NATIONAL HIGHWAY SYSTEM- The Secretary shall--

‘(A) conduct a study on the benefits, cost-effectiveness, and feasibility of requiring element-level data collection for bridges not on the National Highway System; and

‘(B) submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on the results of the study.

‘(e) Bridges Without Taxing Powers-

‘(1) IN GENERAL- Notwithstanding any other provision of law, any bridge that is owned and operated by an agency that does not have taxing powers and whose functions include operating a federally assisted public transit system subsidized by toll revenues shall be eligible for assistance under this title, but the amount of such assistance shall in no event exceed the cumulative amount which such agency has expended for capital and operating costs to subsidize such transit system.

‘(2) INSUFFICIENT ASSETS- Before authorizing an expenditure of funds under this subsection, the Secretary shall determine that the applicant agency has insufficient reserves, surpluses, and projected revenues (over and above those required for bridge and transit capital and operating costs) to fund the bridge project or activity eligible for assistance under this title.

‘(3) CREDITING OF NON-FEDERAL FUNDS- Any non-Federal funds expended for the seismic retrofit of the bridge may be credited toward the non-Federal share required as a condition of receipt of any Federal funds for seismic retrofit of the bridge made available after the date of the expenditure.

‘(f) Replacement of Destroyed Bridges and Ferry Boat Service-

‘(1) IN GENERAL- Notwithstanding any other provision of law, a State may use the funds apportioned under section 104(b)(2) to construct any bridge that replaces--

‘(A) any low water crossing (regardless of the length of the low water crossing);

‘(B) any bridge that was destroyed prior to January 1, 1965;

‘(C) any ferry that was in existence on January 1, 1984; or

‘(D) any road bridge that is rendered obsolete as a result of a Corps of Engineers flood control or channelization project and is not rebuilt with funds from the Corps of Engineers.

‘(2) FEDERAL SHARE- The Federal share payable on any bridge construction carried out under paragraph (1) shall be 80 percent of the cost of the construction.

‘(g) Historic Bridges-

‘(1) DEFINITION OF HISTORIC BRIDGE- In this subsection, the term ‘historic bridge’ means any bridge that is listed on, or eligible for listing on, the National Register of Historic Places.

‘(2) COORDINATION- The Secretary shall, in cooperation with the States, encourage the retention, rehabilitation, adaptive reuse, and future study of historic bridges.

‘(3) STATE INVENTORY- The Secretary shall require each State to complete an inventory of all bridges on and off Federal-aid highways to determine the historic significance of the bridges.

‘(4) ELIGIBILITY-

‘(A) IN GENERAL- Subject to subparagraph (B), reasonable costs associated with actions to preserve, or reduce the impact of a project under this chapter on, the historic integrity of a historic bridge shall be eligible as reimbursable project costs under section 133 if the load capacity and safety features of the historic bridge are adequate to serve the intended use for the life of the historic bridge.

‘(B) BRIDGES NOT USED FOR VEHICLE TRAFFIC- In the case of a historic bridge that is no longer used for motorized vehicular traffic, the costs eligible as reimbursable project costs pursuant to this chapter shall not exceed the estimated cost of demolition of the historic bridge.

‘(5) PRESERVATION- Any State that proposes to demolish a historic bridge for a replacement project with funds made available to carry out this section shall first make the historic bridge available for donation to a State, locality, or responsible private entity if the State, locality, or responsible entity enters into an agreement--

‘(A) to maintain the bridge and the features that give the historic bridge its historic significance; and

‘(B) to assume all future legal and financial responsibility for the historic bridge, which may include an agreement to hold the State transportation department harmless in any liability action.

‘(6) COSTS INCURRED-

‘(A) IN GENERAL- Costs incurred by the State to preserve a historic bridge (including funds made available to the State, locality, or private entity to enable it to accept the bridge) shall be eligible as reimbursable project costs under this chapter in an amount not to exceed the cost of demolition.

‘(B) ADDITIONAL FUNDING- Any bridge preserved pursuant to this paragraph shall not be eligible for any other funds authorized pursuant to this title.

‘(h) National Bridge and Tunnel Inspection Standards-

‘(1) REQUIREMENT-

‘(A) IN GENERAL- The Secretary shall establish and maintain inspection standards for the proper inspection and evaluation of all highway bridges and tunnels for safety and serviceability.

‘(B) UNIFORMITY- The standards under this subsection shall be designed to ensure uniformity of the inspections and evaluations.

‘(2) MINIMUM REQUIREMENTS OF INSPECTION STANDARDS- The standards established under paragraph (1) shall, at a minimum--

‘(A) specify, in detail, the method by which the inspections shall be carried out by the States, Federal agencies, and tribal governments;

‘(B) establish the maximum time period between inspections;

‘(C) establish the qualifications for those charged with carrying out the inspections;

‘(D) require each State, Federal agency, and tribal government to maintain and make available to the Secretary on request--

‘(i) written reports on the results of highway bridge and tunnel inspections and notations of any action taken pursuant to the findings of the inspections; and

‘(ii) current inventory data for all highway bridges and tunnels reflecting the findings of the most recent highway bridge and tunnel inspections conducted; and

‘(E) establish a procedure for national certification of highway bridge inspectors and tunnel inspectors.

‘(3) STATE COMPLIANCE WITH INSPECTION STANDARDS- The Secretary shall, at a minimum--

‘(A) establish, in consultation with the States, and interested and knowledgeable private organizations and individuals, procedures to conduct reviews of State compliance with--

‘(i) the standards established under this subsection; and

‘(ii) the calculation or reevaluation of bridge load ratings; and

‘(B) establish, in consultation with the States, and interested and knowledgeable private organizations and individuals, procedures for States to follow in reporting to the Secretary--

‘(i) critical findings relating to structural or safety-related deficiencies of highway bridges; and

‘(ii) monitoring activities and corrective actions taken in response to a critical finding.

‘(4) REVIEWS OF STATE COMPLIANCE-

‘(A) IN GENERAL- The Secretary shall annually review State compliance with the standards established under this section.

‘(B) NONCOMPLIANCE- If an annual review in accordance with subparagraph (A) identifies noncompliance by a State, the Secretary shall--

‘(i) issue a report detailing the issues of the noncompliance by December 31 of the calendar year in which the review was made; and

‘(ii) provide the State an opportunity to address the noncompliance by--

‘(I) developing a corrective action plan to remedy the noncompliance; or

‘(II) resolving the issues of noncompliance not later than 45 days after the date of notification.

‘(5) PENALTY FOR NONCOMPLIANCE-

‘(A) IN GENERAL- If a State fails to satisfy the requirements of paragraph (4)(B) by August 1 of the calendar year following the year of a finding of noncompliance, the Secretary shall, on October 1 of that year, and each year thereafter as may be necessary, require the State to dedicate funds apportioned to the State under sections 119 and 133 after the date of enactment of the MAP-21 to correct the noncompliance with the minimum inspection standards established under this subsection.

‘(B) AMOUNT- The amount of the funds to be directed to correcting noncompliance in accordance with subparagraph (A) shall--

‘(i) be determined by the State based on an analysis of the actions needed to address the noncompliance; and

‘(ii) require approval by the Secretary.

‘(6) UPDATE OF STANDARDS- Not later than 3 years after the date of enactment of the MAP-21, the Secretary shall update inspection standards to cover--

‘(A) the methodology, training, and qualifications for inspectors; and

‘(B) the frequency of inspection.

‘(7) RISK-BASED APPROACH- In carrying out the revisions required by paragraph (6), the Secretary shall consider a risk-based approach to determining the frequency of bridge inspections.

‘(i) Training Program for Bridge and Tunnel Inspectors-

‘(1) IN GENERAL- The Secretary, in cooperation with the State transportation departments, shall maintain a program designed to train appropriate personnel to carry out highway bridge and tunnel inspections.

‘(2) REVISIONS- The training program shall be revised from time to time to take into account new and improved techniques.

‘(j) Availability of Funds- To carry out this section, the Secretary may use funds made available under sections 104(a), 119, 133, and 503.’.

(b) Conforming Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 144 and inserting the following:

‘144. National bridge and tunnel inventory and inspection standards.’.

SEC. 1112. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

Section 148 of title 23, United States Code, is amended to read as follows:

‘Sec. 148. Highway safety improvement program

‘(a) Definitions- In this section, the following definitions apply:

‘(1) HIGH RISK RURAL ROAD- The term ‘high risk rural road’ means any roadway functionally classified as a rural major or minor collector or a rural local road with significant safety risks, as defined by a State in accordance with an updated State strategic highway safety plan.

‘(2) HIGHWAY BASEMAP- The term ‘highway basemap’ means a representation of all public roads that can be used to geolocate attribute data on a roadway.

‘(3) HIGHWAY SAFETY IMPROVEMENT PROGRAM- The term ‘highway safety improvement program’ means projects, activities, plans, and reports carried out under this section.

‘(4) HIGHWAY SAFETY IMPROVEMENT PROJECT-

‘(A) IN GENERAL- The term ‘highway safety improvement project’ means strategies, activities, and projects on a public road that are consistent with a State strategic highway safety plan and--

‘(i) correct or improve a hazardous road location or feature; or

‘(ii) address a highway safety problem.

‘(B) INCLUSIONS- The term ‘highway safety improvement project’ includes, but is not limited to, a project for 1 or more of the following:

‘(i) An intersection safety improvement.

‘(ii) Pavement and shoulder widening (including addition of a passing lane to remedy an unsafe condition).

‘(iii) Installation of rumble strips or another warning device, if the rumble strips or other warning devices do not adversely affect the safety or mobility of bicyclists and pedestrians, including persons with disabilities.

‘(iv) Installation of a skid-resistant surface at an intersection or other location with a high frequency of crashes.

‘(v) An improvement for pedestrian or bicyclist safety or safety of persons with disabilities.

‘(vi) Construction and improvement of a railway-highway grade crossing safety feature, including installation of protective devices.

‘(vii) The conduct of a model traffic enforcement activity at a railway-highway crossing.

‘(viii) Construction of a traffic calming feature.

‘(ix) Elimination of a roadside hazard.

‘(x) Installation, replacement, and other improvement of highway signage and pavement markings, or a project to maintain minimum levels of retroreflectivity, that addresses a highway safety problem consistent with a State strategic highway safety plan.

‘(xi) Installation of a priority control system for emergency vehicles at signalized intersections.

‘(xii) Installation of a traffic control or other warning device at a location with high crash potential.

‘(xiii) Transportation safety planning.

‘(xiv) Collection, analysis, and improvement of safety data.

‘(xv) Planning integrated interoperable emergency communications equipment, operational activities, or traffic enforcement activities (including police assistance) relating to work zone safety.

‘(xvi) Installation of guardrails, barriers (including barriers between construction work zones and traffic lanes for the safety of road users and workers), and crash attenuators.

‘(xvii) The addition or retrofitting of structures or other measures to eliminate or reduce crashes involving vehicles and wildlife.

‘(xviii) Installation of yellow-green signs and signals at pedestrian and bicycle crossings and in school zones.

‘(xix) Construction and operational improvements on high risk rural roads.

‘(xx) Geometric improvements to a road for safety purposes that improve safety.

‘(xxi) A road safety audit.

‘(xxii) Roadway safety infrastructure improvements consistent with the recommendations included in the publication of the Federal Highway Administration entitled ‘Highway Design Handbook for Older Drivers and Pedestrians’ (FHWA-RD-01-103), dated May 2001 or as subsequently revised and updated.

‘(xxiii) Truck parking facilities eligible for funding under section 1401 of the MAP-21.

‘(xxiv) Systemic safety improvements.

‘(5) MODEL INVENTORY OF ROADWAY ELEMENTS- The term ‘model inventory of roadway elements’ means the listing and standardized coding by the Federal Highway Administration of roadway and traffic data elements critical to safety management, analysis, and decisionmaking.

‘(6) PROJECT TO MAINTAIN MINIMUM LEVELS OF RETROREFLECTIVITY- The term ‘project to maintain minimum levels of retroreflectivity’ means a project that is designed to maintain a highway sign or pavement marking retroreflectivity at or above the minimum levels prescribed in Federal or State regulations.

‘(7) ROAD SAFETY AUDIT- The term ‘road safety audit’ means a formal safety performance examination of an existing or future road or intersection by an independent multidisciplinary audit team.

‘(8) ROAD USERS- The term ‘road user’ means a motorist, passenger, public transportation operator or user, truck driver, bicyclist, motorcyclist, or pedestrian, including a person with disabilities.

‘(9) SAFETY DATA-

‘(A) IN GENERAL- The term ‘safety data’ means crash, roadway, and traffic data on a public road.

‘(B) INCLUSION- The term ‘safety data’ includes, in the case of a railway-highway grade crossing, the characteristics of highway and train traffic, licensing, and vehicle data.

‘(10) SAFETY PROJECT UNDER ANY OTHER SECTION-

‘(A) IN GENERAL- The term ‘safety project under any other section’ means a project carried out for the purpose of safety under any other section of this title.

‘(B) INCLUSION- The term ‘safety project under any other section’ includes--

‘(i) a project consistent with the State strategic highway safety plan that promotes the awareness of the public and educates the public concerning highway safety matters (including motorcycle safety);

‘(ii) a project to enforce highway safety laws; and

‘(iii) a project to provide infrastructure and infrastructure-related equipment to support emergency services.

‘(11) STATE HIGHWAY SAFETY IMPROVEMENT PROGRAM- The term ‘State highway safety improvement program’ means a program of highway safety improvement projects, activities, plans and reports carried out as part of the Statewide transportation improvement program under section 135(g).

‘(12) STATE STRATEGIC HIGHWAY SAFETY PLAN- The term ‘State strategic highway safety plan’ means a comprehensive plan, based on safety data, developed by a State transportation department that--

‘(A) is developed after consultation with--

‘(i) a highway safety representative of the Governor of the State;

‘(ii) regional transportation planning organizations and metropolitan planning organizations, if any;

‘(iii) representatives of major modes of transportation;

‘(iv) State and local traffic enforcement officials;

‘(v) a highway-rail grade crossing safety representative of the Governor of the State;

‘(vi) representatives conducting a motor carrier safety program under section 31102, 31106, or 31309 of title 49;

‘(vii) motor vehicle administration agencies;

‘(viii) county transportation officials;

‘(ix) State representatives of nonmotorized users; and

‘(x) other major Federal, State, tribal, and local safety stakeholders;

‘(B) analyzes and makes effective use of State, regional, local, or tribal safety data;

‘(C) addresses engineering, management, operation, education, enforcement, and emergency services elements (including integrated, interoperable emergency communications) of highway safety as key factors in evaluating highway projects;

‘(D) considers safety needs of, and high-fatality segments of, all public roads, including non-State-owned public roads and roads on tribal land;

‘(E) considers the results of State, regional, or local transportation and highway safety planning processes;

‘(F) describes a program of strategies to reduce or eliminate safety hazards;

‘(G) is approved by the Governor of the State or a responsible State agency;

‘(H) is consistent with section 135(g); and

‘(I) is updated and submitted to the Secretary for approval as required under subsection (d)(2).

‘(13) SYSTEMIC SAFETY IMPROVEMENT- The term ‘systemic safety improvement’ means an improvement that is widely implemented based on high-risk roadway features that are correlated with particular crash types, rather than crash frequency.

‘(b) Program-

‘(1) IN GENERAL- The Secretary shall carry out a highway safety improvement program.

‘(2) PURPOSE- The purpose of the highway safety improvement program shall be to achieve a significant reduction in traffic fatalities and serious injuries on all public roads, including non-State-owned public roads and roads on tribal land.

‘(c) Eligibility-

‘(1) IN GENERAL- To obligate funds apportioned under section 104(b)(3) to carry out this section, a State shall have in effect a State highway safety improvement program under which the State--

‘(A) develops, implements, and updates a State strategic highway safety plan that identifies and analyzes highway safety problems and opportunities as provided in subsections (a)(12) and (d);

‘(B) produces a program of projects or strategies to reduce identified safety problems; and

‘(C) evaluates the strategic highway safety plan on a regularly recurring basis in accordance with subsection (d)(1) to ensure the accuracy of the data and priority of proposed strategies.

‘(2) IDENTIFICATION AND ANALYSIS OF HIGHWAY SAFETY PROBLEMS AND OPPORTUNITIES- As part of the State highway safety improvement program, a State shall--

‘(A) have in place a safety data system with the ability to perform safety problem identification and countermeasure analysis--

‘(i) to improve the timeliness, accuracy, completeness, uniformity, integration, and accessibility of the safety data on all public roads, including non-State-owned public roads and roads on tribal land in the State;

‘(ii) to evaluate the effectiveness of data improvement efforts;

‘(iii) to link State data systems, including traffic records, with other data systems within the State;

‘(iv) to improve the compatibility and interoperability of safety data with other State transportation-related data systems and the compatibility and interoperability of State safety data systems with data systems of other States and national data systems;

‘(v) to enhance the ability of the Secretary to observe and analyze national trends in crash occurrences, rates, outcomes, and circumstances; and

‘(vi) to improve the collection of data on nonmotorized crashes;

‘(B) based on the analysis required by subparagraph (A)--

‘(i) identify hazardous locations, sections, and elements (including roadside obstacles, railway-highway crossing needs, and unmarked or poorly marked roads) that constitute a danger to motorists (including motorcyclists), bicyclists, pedestrians, and other highway users;

‘(ii) using such criteria as the State determines to be appropriate, establish the relative severity of those locations, in terms of crashes (including crash rates), fatalities, serious injuries, traffic volume levels, and other relevant data;

‘(iii) identify the number of fatalities and serious injuries on all public roads by location in the State;

‘(iv) identify highway safety improvement projects on the basis of crash experience, crash potential, crash rate, or other data-supported means; and

‘(v) consider which projects maximize opportunities to advance safety;

‘(C) adopt strategic and performance-based goals that--

‘(i) address traffic safety, including behavioral and infrastructure problems and opportunities on all public roads;

‘(ii) focus resources on areas of greatest need; and

‘(iii) are coordinated with other State highway safety programs;

‘(D) advance the capabilities of the State for safety data collection, analysis, and integration in a manner that--

‘(i) complements the State highway safety program under chapter 4 and the commercial vehicle safety plan under section 31102 of title 49;

‘(ii) includes all public roads, including public non-State-owned roads and roads on tribal land;

‘(iii) identifies hazardous locations, sections, and elements on all public roads that constitute a danger to motorists (including motorcyclists), bicyclists, pedestrians, persons with disabilities, and other highway users;

‘(iv) includes a means of identifying the relative severity of hazardous locations described in clause (iii) in terms of crashes (including crash rate), serious injuries, fatalities, and traffic volume levels; and

‘(v) improves the ability of the State to identify the number of fatalities and serious injuries on all public roads in the State with a breakdown by functional classification and ownership in the State;

‘(E)(i) determine priorities for the correction of hazardous road locations, sections, and elements (including railway-highway crossing improvements), as identified through safety data analysis;

‘(ii) identify opportunities for preventing the development of such hazardous conditions; and

‘(iii) establish and implement a schedule of highway safety improvement projects for hazard correction and hazard prevention; and

‘(F)(i) establish an evaluation process to analyze and assess results achieved by highway safety improvement projects carried out in accordance with procedures and criteria established by this section; and

‘(ii) use the information obtained under clause (i) in setting priorities for highway safety improvement projects.

‘(d) Updates to Strategic Highway Safety Plans-

‘(1) ESTABLISHMENT OF REQUIREMENTS-

‘(A) IN GENERAL- Not later than 1 year after the date of enactment of the MAP-21, the Secretary shall establish requirements for regularly recurring State updates of strategic highway safety plans.

‘(B) CONTENTS OF UPDATED STRATEGIC HIGHWAY SAFETY PLANS- In establishing requirements under this subsection, the Secretary shall ensure that States take into consideration, with respect to updated strategic highway safety plans--

‘(i) the findings of road safety audits;

‘(ii) the locations of fatalities and serious injuries;

‘(iii) the locations that do not have an empirical history of fatalities and serious injuries, but possess risk factors for potential crashes;

‘(iv) rural roads, including all public roads, commensurate with fatality data;

‘(v) motor vehicle crashes that include fatalities or serious injuries to pedestrians and bicyclists;

‘(vi) the cost-effectiveness of improvements;

‘(vii) improvements to rail-highway grade crossings; and

‘(viii) safety on all public roads, including non-State-owned public roads and roads on tribal land.

‘(2) APPROVAL OF UPDATED STRATEGIC HIGHWAY SAFETY PLANS-

‘(A) IN GENERAL- Each State shall--

‘(i) update the strategic highway safety plans of the State in accordance with the requirements established by the Secretary under this subsection; and

‘(ii) submit the updated plans to the Secretary, along with a detailed description of the process used to update the plan.

‘(B) REQUIREMENTS FOR APPROVAL- The Secretary shall not approve the process for an updated strategic highway safety plan unless--

‘(i) the updated strategic highway safety plan is consistent with the requirements of this subsection and subsection (a)(12); and

‘(ii) the process used is consistent with the requirements of this subsection.

‘(3) PENALTY FOR FAILURE TO HAVE AN APPROVED UPDATED STRATEGIC HIGHWAY SAFETY PLAN- If a State does not have an updated strategic highway safety plan with a process approved by the Secretary by August 1 of the fiscal year beginning after the date of establishment of the requirements under paragraph (1)--

‘(A) the State shall not be eligible to receive any additional limitation pursuant to the redistribution of the limitation on obligations for Federal-aid highway and highway safety construction programs that occurs after August 1 for each succeeding fiscal year until the fiscal year during which the plan is approved; and

‘(B) the Secretary shall, on October 1 of each fiscal year thereafter, transfer from funds apportioned to the State under section 104(b)(2) (other than amounts suballocated to metropolitan areas and other areas of the State under section 133(d)) an amount equal to 10 percent of the funds so apportioned for the fiscal year for use under the highway safety improvement program under this section to the apportionment of the State under section 104(b)(3) until the fiscal year in which the plan is approved.

‘(e) Eligible Projects-

‘(1) IN GENERAL- Funds apportioned to the State under section 104(b)(3) may be obligated to carry out--

‘(A) any highway safety improvement project on any public road or publicly owned bicycle or pedestrian pathway or trail; or

‘(B) as provided in subsection (f), other safety projects.

‘(2) USE OF OTHER FUNDING FOR SAFETY-

‘(A) EFFECT OF SECTION- Nothing in this section prohibits the use of funds made available under other provisions of this title for highway safety improvement projects.

‘(B) USE OF OTHER FUNDS- States are encouraged to address the full scope of the safety needs and opportunities of the States by using funds made available under other provisions of this title (except a provision that specifically prohibits that use).

‘(f) Flexible Funding for States With a Strategic Highway Safety Plan-

‘(1) IN GENERAL- To further the implementation of a State strategic highway safety plan, a State may use up to 10 percent of the amount of funds apportioned to the State under section 104(b)(3) for a fiscal year to carry out safety projects under any other section as provided in the State strategic highway safety plan if the State certifies that--

‘(A) the State has met needs in the State relating to railway-highway crossings for the preceding fiscal year; and

‘(B) the funds are being used for the most effective projects to make progress toward achieving the safety performance targets of the State.

‘(2) OTHER TRANSPORTATION AND HIGHWAY SAFETY PLANS- Nothing in this subsection requires a State to revise any State process, plan, or program in effect on the date of enactment of the MAP-21.

‘(g) Data Improvement-

‘(1) DEFINITION OF DATA IMPROVEMENT ACTIVITIES- In this subsection:

‘(A) IN GENERAL- The term ‘data improvement activities’ means a project or activity to further the capacity of a State to make more informed and effective safety infrastructure investment decisions.

‘(B) INCLUSIONS- The term ‘data improvement activities’ includes a project or activity--

‘(i) to create, update, or enhance a highway basemap of all public roads in a State;

‘(ii) to collect safety data, including data identified as part of the model inventory of roadway elements, for creation of or use on a highway basemap of all public roads in a State;

‘(iii) to store and maintain safety data in an electronic manner;

‘(iv) to develop analytical processes for safety data elements;

‘(v) to acquire and implement roadway safety analysis tools; and

‘(vi) to support the collection, maintenance, and sharing of safety data on all public roads and related systems associated with the analytical usage of that data.

‘(2) APPORTIONMENT- Of the funds apportioned to a State under section 104(b)(3) for a fiscal year--

‘(A) not less than 8 percent of the funds apportioned for each of fiscal years 2012 through 2013 shall be available only for data improvement activities under this subsection; and

‘(B) not less than 4 percent of the funds apportioned for fiscal year 2014 and each fiscal year thereafter shall be available only for data improvement activities under this subsection.

‘(3) SPECIAL RULE- A State may use funds apportioned to the State pursuant to this subsection for any project eligible under this section if the State demonstrates to the satisfaction of the Secretary that the State has met all of the State needs for data collection to support the State strategic highway safety plan and sufficiently addressed the data improvement activities described in paragraph (1).

‘(4) MODEL INVENTORY OF ROADWAY ELEMENTS- The Secretary shall--

‘(A) establish a subset of the model inventory of roadway elements that are useful for the inventory of roadway safety; and

‘(B) ensure that States adopt and use the subset to improve data collection.

‘(h) Performance Measures and Targets for State Highway Safety Improvement Programs-

‘(1) ESTABLISHMENT OF PERFORMANCE MEASURES- Not later than 1 year after the date of enactment of the MAP-21, the Secretary shall issue guidance to States on the establishment, collection, and reporting of performance measures that reflect--

‘(A) serious injuries and fatalities per vehicle mile traveled;

‘(B) serious injuries and fatalities per capita; and

‘(C) the number of serious injuries and fatalities

‘(2) ESTABLISHMENT OF STATE PERFORMANCE TARGETS- Not later than 1 year after the Secretary has issued guidance to States on the establishment, collection, and reporting of performance measures, each State shall set performance targets that reflect--

‘(A) serious injuries and fatalities per vehicle mile traveled;

‘(B) serious injuries and fatalities per capita; and

‘(C) the number of serious injuries and fatalities.

‘(i) Special Rules-

‘(1) HIGH-RISK RURAL ROAD SAFETY- If the fatality rate on rural roads in a State increases over the most recent 2-year period for which data are available, that State shall be required to obligate in the next fiscal year for projects on high risk rural roads an amount equal to at least 200 percent of the amount of funds the State received for fiscal year 2009 for high risk rural roads under subsection (f) of this section, as in effect on the day before the date of enactment of the MAP-21.

‘(2) RAIL-HIGHWAY GRADE CROSSINGS- If the average number of fatalities at rail-highway grade crossings in a State over the most recent 2-year period for which data are available increases over the average number of fatalities during the preceding 2-year period, that State shall be required to obligate in the next fiscal year for projects on rail-highway grade crossings an amount equal to 120 percent of the amount of funds the State received for fiscal year 2009 for rail-highway grade crossings under section 130(f) (as in effect on the day before the date of enactment of the MAP-21).

‘(3) OLDER DRIVERS- If traffic fatalities and serious injuries per capita for drivers and pedestrians over the age of 65 in a State increases during the most recent 2-year period for which data are available, that State shall be required to include, in the subsequent Strategic Highway Safety Plan of the State, strategies to address the increases in those rates, taking into account the recommendations included in the publication of the Federal Highway Administration entitled ‘Highway Design Handbook for Older Drivers and Pedestrians’ (FHWA-RD-01-103), and dated May 2001, or as subsequently revised and updated.

‘(j) Reports-

‘(1) IN GENERAL- A State shall submit to the Secretary a report that--

‘(A) describes the progress being made to achieve the performance targets established under subsection (h);

‘(B) describes progress being made to implement highway safety improvement projects under this section;

‘(C) assesses the effectiveness of those improvements; and

‘(D) describes the extent to which the improvements funded under this section have contributed to reducing--

‘(i) the number and rate of fatalities on all public roads with, to the maximum extent practicable, a breakdown by functional classification and ownership in the State;

‘(ii) the number and rate of serious injuries on all public roads with, to the maximum extent practicable, a breakdown by functional classification and ownership in the State; and

‘(iii) the occurrences of fatalities and serious injuries at railway-highway crossings.

‘(2) CONTENTS; SCHEDULE- The Secretary shall establish the content and schedule for the submission of the report under paragraph (1).

‘(3) TRANSPARENCY- The Secretary shall make strategic highway safety plans submitted under subsection (d) and reports submitted under this subsection available to the public through--

‘(A) the website of the Department; and

‘(B) such other means as the Secretary determines to be appropriate.

‘(4) DISCOVERY AND ADMISSION INTO EVIDENCE OF CERTAIN REPORTS, SURVEYS, AND INFORMATION- Notwithstanding any other provision of law, reports, surveys, schedules, lists, or data compiled or collected for any purpose relating to this section, shall not be subject to discovery or admitted into evidence in a Federal or State court proceeding or considered for other purposes in any action for damages arising from any occurrence at a location identified or addressed in the reports, surveys, schedules, lists, or other data.

‘(k) State Performance Targets- If the Secretary determines that a State has not met or made significant progress toward meeting the performance targets of the State established under subsection (h) by the date that is 2 years after the date of the establishment of the performance targets, the State shall--

‘(1) use obligation authority equal to the apportionment of the State for the prior year under section 104(b)(3) only for highway safety improvement projects under this section until the Secretary determines that the State has met or made significant progress toward meeting the performance targets of the State; and

‘(2) submit annually to the Secretary, until the Secretary determines that the State has met or made significant progress toward meeting the performance targets of the State, an implementation plan that--

‘(A) identifies roadway features that constitute a hazard to road users;

‘(B) identifies highway safety improvement projects on the basis of crash experience, crash potential, or other data-supported means;

‘(C) describes how highway safety improvement program funds will be allocated, including projects, activities, and strategies to be implemented;

‘(D) describes how the proposed projects, activities, and strategies funded under the State highway safety improvement program will allow the State to make progress toward achieving the safety performance targets of the State; and

‘(E) describes the actions the State will undertake to meet the performance targets of the State.

‘(l) Federal Share of Highway Safety Improvement Projects- Except as provided in sections 120 and 130, the Federal share of the cost of a highway safety improvement project carried out with funds apportioned to a State under section 104(b)(3) shall be 90 percent.’.

SEC. 1113. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.

Section 149 of title 23, United States Code, is amended to read as follows:

‘Sec. 149. Congestion mitigation and air quality improvement program

‘(a) Establishment- The Secretary shall establish and implement a congestion mitigation and air quality improvement program in accordance with this section.

‘(b) Eligible Projects-

‘(1) IN GENERAL- Except as provided in subsection (c), a State may obligate funds apportioned to the State for the congestion mitigation and air quality improvement program under section 104(b)(4) that are not reserved under subsection (l) only for a transportation project or program if the project or program is for an area in the State that is or was designated as a nonattainment area for ozone, carbon monoxide, or particulate matter under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)) and classified pursuant to section 181(a), 186(a), 188(a), or 188(b) of the Clean Air Act (42 U.S.C. 7511(a), 7512(a), 7513(a), or 7513(b)) or is or was designated as a nonattainment area under section 107(d) of that Act after December 31, 1997, or is required to prepare, and file with the Administrator of the Environmental Protection Agency, maintenance plans under the Clean Air Act (42 U.S.C. 7401 et seq.); and

‘(A)(i)(I) if the Secretary, after consultation with the Administrator determines, on the basis of information published by the Environmental Protection Agency pursuant to subparagraph (A) of section 108(f)(1) of the Clean Air Act (other than clause (xvi) of that subparagraph) (42 U.S.C. 7408(f)(1)) that the project or program is likely to contribute to--

‘(aa) the attainment of a national ambient air quality standard; or

‘(bb) the maintenance of a national ambient air quality standard in a maintenance area; and

‘(II) there exists a high level of effectiveness in reducing air pollution, in cases of projects or programs where sufficient information is available in the database established pursuant to subsection (h) to determine the relative effectiveness of such projects or programs; or

‘(ii) in any case in which such information is not available, if the Secretary, after such consultation, determines that the project or program is part of a program, method, or strategy described in such section 108(f)(1)(A);

‘(B) if the project or program is included in a State implementation plan that has been approved pursuant to the Clean Air Act and the project will have air quality benefits;

‘(C) to establish or operate a traffic monitoring, management, and control facility or program, including truck stop electrification systems, if the Secretary, after consultation with the Administrator, determines that the facility or program is likely to contribute to the attainment of a national ambient air quality standard;

‘(D) if the program or project improves traffic flow, including projects to improve signalization, construct high-occupancy vehicle lanes, improve intersections, add turning lanes, improve transportation systems management and operations that mitigate congestion and improve air quality, and implement intelligent transportation system strategies and such other projects that are eligible for assistance under this section on the day before the date of enactment of the MAP-21, including programs or projects to improve incident and emergency response or improve mobility, such as through real-time traffic, transit, and multimodal traveler information;

‘(E) if the project or program involves the purchase of integrated, interoperable emergency communications equipment;

‘(F) if the project or program is for--

‘(i) the purchase of diesel retrofits that are--

‘(I) for motor vehicles (as defined in section 216 of the Clean Air Act (42 U.S.C. 7550)); or

‘(II) verified technologies (as defined in section 791 of the Energy Policy Act of 2005 (42 U.S.C. 16131)) for nonroad vehicles and nonroad engines (as defined in section 216 of the Clean Air Act (42 U.S.C. 7550)) that are used in construction projects that are--

‘(aa) located in nonattainment or maintenance areas for ozone, PM10, or PM2.5 (as defined under the Clean Air Act (42 U.S.C. 7401 et seq.)); and

‘(bb) funded, in whole or in part, under this title; or

‘(ii) the conduct of outreach activities that are designed to provide information and technical assistance to the owners and operators of diesel equipment and vehicles regarding the purchase and installation of diesel retrofits;

‘(G) if the project involves the installation of battery charging or replacement facilities for electric-drive vehicles, or refueling facilities for alternative-fuel vehicles;

‘(H) if the project or program shifts traffic demand to nonpeak hours or other transportation modes, increases vehicle occupancy rates, or otherwise reduces demand for roads through such means as telecommuting, ridesharing, carsharing, alternative work hours, and pricing; or

‘(I) if the Secretary, after consultation with the Administrator, determines that the project or program is likely to contribute to the attainment of a national ambient air quality standard, whether through reductions in vehicle miles traveled, fuel consumption, or through other factors.

‘(2) LIMITATIONS- Funds apportioned to a State under section 104(b)(4) and not reserved under subsection (l) may not be obligated for a project that will result in the construction of new capacity available to single-occupant vehicles unless the project consists of a high-occupancy vehicle facility available to single-occupant vehicles only at other than peak travel times or such use by single-occupant vehicles at peak travel times is subject to a toll.

‘(3) USE OF FUNDS FOR OTHER ACTIVITIES- Notwithstanding paragraph (1) and subsection (c), the Secretary may permit a State to use amounts apportioned to the State for each of fiscal years 2012 and 2013 for the congestion mitigation and air quality improvement program under section 104(b)(4) to carry out any activity on a system that was eligible for funding under that program as in effect on December 31, 2010.

‘(c) States Flexibility-

‘(1) STATES WITHOUT A NONATTAINMENT AREA- If a State does not have, and never has had, a nonattainment area designated under the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone, carbon monoxide, or PM2.5, the State may use funds apportioned to the State under section 104(b)(4) (excluding the amount of funds reserved under subsection (l)) for any project in the State that--

‘(A) would otherwise be eligible under subsection (b) as if the project were carried out in a nonattainment or maintenance area; or

‘(B) is eligible under the transportation mobility program under section 133.

‘(2) STATES WITH A NONATTAINMENT AREA-

‘(A) IN GENERAL- If a State has a nonattainment area or maintenance area and received funds in fiscal year 2009 under section 104(b)(2)(D), as in effect on the day before the date of enactment of the MAP-21, above the amount of funds that the State would have received based on the nonattainment and maintenance area population of the State under subparagraphs (B) and (C) of section 104(b)(2), as in effect on the day before the date of enactment of the MAP-21, the State may use for any project that is eligible under the transportation mobility program under section 133 an amount of funds apportioned to such State under section 104(b)(4) (excluding the amount of funds reserved under subsection (l)) that is equal to the product obtained by multiplying--

‘(i) the amount apportioned to such State under section 104(b)(4) (excluding the amount of funds reserved under subsection (l)); by

‘(ii) the ratio calculated under paragraph (B).

‘(B) RATIO- For purposes of this paragraph, the ratio shall be calculated as--

‘(i) the amount for fiscal year 2009 such State was permitted by section 149(c)(2), as in effect on the day before the date of enactment of the MAP-21, to obligate in any area of the State for projects eligible under section 133, as in effect on the day before the date of enactment of the MAP-21; bears to

‘(ii) the total apportionment to such State for fiscal year 2009 under section 104(b)(2), as in effect on the day before the date of enactment of the MAP-21.

‘(3) CHANGES IN DESIGNATION- If a new nonattainment area is designated or a previously designated nonattainment area is redesignated as an attainment area in a State under the Clean Air Act (42 U.S.C. 7401 et seq.), the Secretary shall modify the amount such State is permitted to obligate in any area of the State for projects eligible under section 133.

‘(d) Applicability of Planning Requirements- Programming and expenditure of funds for projects under this section shall be consistent with the requirements of sections 134 and 135.

‘(e) Partnerships With Nongovernmental Entities-

‘(1) IN GENERAL- Notwithstanding any other provision of this title and in accordance with this subsection, a metropolitan planning organization, State transportation department, or other project sponsor may enter into an agreement with any public, private, or nonprofit entity to cooperatively implement any project carried out with funds apportioned under section 104(b)(4).

‘(2) FORMS OF PARTICIPATION BY ENTITIES- Participation by an entity under paragraph (1) may consist of--

‘(A) ownership or operation of any land, facility, vehicle, or other physical asset associated with the project;

‘(B) cost sharing of any project expense;

‘(C) carrying out of administration, construction management, project management, project operation, or any other management or operational duty associated with the project; and

‘(D) any other form of participation approved by the Secretary.

‘(3) ALLOCATION TO ENTITIES- A State may allocate funds apportioned under section 104(b)(4) to an entity described in paragraph (1).

‘(4) ALTERNATIVE FUEL PROJECTS- In the case of a project that will provide for the use of alternative fuels by privately owned vehicles or vehicle fleets, activities eligible for funding under this subsection--

‘(A) may include the costs of vehicle refueling infrastructure, including infrastructure that would support the development, production, and use of emerging technologies that reduce emissions of air pollutants from motor vehicles, and other capital investments associated with the project;

‘(B) shall include only the incremental cost of an alternative fueled vehicle, as compared to a conventionally fueled vehicle, that would otherwise be borne by a private party; and

‘(C) shall apply other governmental financial purchase contributions in the calculation of net incremental cost.

‘(5) PROHIBITION ON FEDERAL PARTICIPATION WITH RESPECT TO REQUIRED ACTIVITIES- A Federal participation payment under this subsection may not be made to an entity to fund an obligation imposed under the Clean Air Act (42 U.S.C. 7401 et seq.) or any other Federal law.

‘(f) Priority Consideration- States and metropolitan planning organizations shall give priority in areas designated as nonattainment or maintenance for PM2.5 under the Clean Air Act (42 U.S.C. 7401 et seq.) in distributing funds received for congestion mitigation and air quality projects and programs from apportionments under section 104(b)(4) not required to be reserved under subsection (l) to projects that are proven to reduce PM2.5, including diesel retrofits.

‘(g) Interagency Consultation- The Secretary shall encourage States and metropolitan planning organizations to consult with State and local air quality agencies in nonattainment and maintenance areas on the estimated emission reductions from proposed congestion mitigation and air quality improvement programs and projects.

‘(h) Evaluation and Assessment of Projects-

‘(1) DATABASE-

‘(A) IN GENERAL- Using appropriate assessments of projects funded under the congestion mitigation and air quality program and results from other research, the Secretary shall maintain and disseminate a cumulative database describing the impacts of the projects, including specific information about each project, such as the project name, location, sponsor, cost, and, to the extent already measured by the project sponsor, cost-effectiveness, based on reductions in congestion and emissions.

‘(B) AVAILABILITY- The database shall be published or otherwise made readily available by the Secretary in electronically accessible format and means, such as the Internet, for public review.

‘(2) COST EFFECTIVENESS-

‘(A) IN GENERAL- The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall evaluate projects on a periodic basis and develop a table or other similar medium that illustrates the cost-effectiveness of a range of project types eligible for funding under this section as to how the projects mitigate congestion and improve air quality.

‘(B) CONTENTS- The table described in subparagraph (A) shall show measures of cost-effectiveness, such as dollars per ton of emissions reduced, and assess those measures over a variety of timeframes to capture impacts on the planning timeframes outlined in section 134.

‘(C) USE OF TABLE- States and metropolitan planning organizations shall consider the information in the table when selecting projects or developing performance plans under subsection (k).

‘(i) Optional Programmatic Eligibility-

‘(1) IN GENERAL- At the discretion of a metropolitan planning organization, a technical assessment of a selected program of projects may be conducted through modeling or other means to demonstrate the emissions reduction projection required under this section.

‘(2) APPLICABILITY- If an assessment described in paragraph (1) successfully demonstrates an emissions reduction, all projects included in such assessment shall be eligible for obligation under this section without further demonstration of emissions reduction of individual projects included in such assessment.

‘(j) Suballocation to Nonattainment and Maintenance Areas-

‘(1) IN GENERAL- An amount equal to 50 percent of the amount of funds apportioned to each State under section 104(b)(4) (excluding the amount of funds reserved under subsection (l)) shall be suballocated for projects within each area designated as nonattainment or maintenance for the pollutants described in subsection (b).

‘(2) DISTRIBUTION OF FUNDS- The distribution within any State of funds required to be suballocated under paragraph (1) to each nonattainment or maintenance area shall be in accordance with a formula developed by each State and approved by the Secretary, which shall consider the population of each such nonattainment or maintenance area and shall be weighted by the severity of pollution in the manner described in paragraph (6).

‘(3) PROJECT SELECTION- Projects under this subsection shall be selected by a State and shall be consistent with the requirements of sections 134 and 135.

‘(4) PRIORITY FOR USE OF SUBALLOCATED FUNDS IN PM2.5 AREAS-

‘(A) IN GENERAL- An amount equal to 50 percent of the funds suballocated under paragraph (1) for a nonattainment or maintenance area that are based all or in part on the weighted population of such area in fine particulate matter nonattainment shall be obligated to projects that reduce such fine particulate matter emissions in such area, including diesel retrofits.

‘(B) CONSTRUCTION EQUIPMENT- An amount equal to 30 percent of the funds required to be set aside under subparagraph (A) shall be obligated to carry out the objectives of section 330.

‘(C) OBLIGATION PROCESS-

‘(i) IN GENERAL- Each State or metropolitan planning organization required to obligate funds in accordance with this paragraph shall develop a process to provide funding directly to eligible entities (as defined under section 330) in order to achieve the objectives of such section and ensure that the bid proceeding and award of the contract for any covered highway construction project carried out under that section will be--

‘(I) made without regard to the particulate matter emission levels of the fleet of the eligible entity; and

‘(II) consistent with existing requirements for full and open competition under section 112.

‘(ii) OBLIGATION- A State may obligate suballocated funds designated under this paragraph without regard to any process or other requirement established under this section.

‘(5) FUNDS NOT SUBALLOCATED- Except as provided in subsection (c), funds apportioned to a State under section 104(b)(4) (excluding the amount of funds reserved under subsection (l)) and not suballocated under paragraph (1) shall be made available to such State for programming in any nonattainment or maintenance area in the State.

‘(6) FACTORS FOR CALCULATION OF SUBALLOCATION-

‘(A) IN GENERAL- For the purposes of paragraph (2), each State shall weight the population of each such nonattainment or maintenance area by a factor of--

‘(i) 1.0 if, at the time of the apportionment, the area is a maintenance area for ozone or carbon monoxide;

‘(ii) 1.0 if, at the time of the apportionment, the area is classified as a marginal ozone nonattainment area under subpart 2 of part D of title I of the Clean Air Act (42 U.S.C. 7511 et seq.);

‘(iii) 1.1 if, at the time of the apportionment, the area is classified as a moderate ozone nonattainment area under subpart 2 of part D of title I of the Clean Air Act (42 U.S.C. 7511 et seq.);

‘(iv) 1.2 if, at the time of the apportionment, the area is classified as a serious ozone nonattainment area under subpart 2 of part D of title I of the Clean Air Act (42 U.S.C. 7511 et seq.);

‘(v) 1.3 if, at the time of the apportionment, the area is classified as a severe ozone nonattainment area under subpart 2 of part D of title I of the Clean Air Act (42 U.S.C. 7511 et seq.);

‘(vi) 1.5 if, at the time of the apportionment, the area is classified as an extreme ozone nonattainment area under subpart 2 of part D of title I of the Clean Air Act (42 U.S.C. 7511 et seq.);

‘(vii) 1.0 if, at the time of the apportionment, the area is not a nonattainment or maintenance area for ozone as described in section 149(b), but is designated under section 107 of the Clean Air Act (42 U.S.C. 7407) as a nonattainment area for carbon monoxide;

‘(viii) 1.0 if, at the time of the apportionment, the area is designated as nonattainment for ozone under section 107 of the Clean Air Act (42 U.S.C. 7407); or

‘(ix) 1.2 if, at the time of the apportionment, the area is not a nonattainment or maintenance area as described in section 149(b) for ozone, but is designated as a nonattainment or maintenance area for fine particulate matter, 2.5 micrometers or less, under section 107 of the Clean Air Act (42 U.S.C. 7407).

‘(B) OTHER FACTORS- If, in addition to being designated as a nonattainment or maintenance area for ozone as described in section 149(b), any county within the area was also designated under section 107 of the Clean Air Act (42 U.S.C. 7407) as a nonattainment or maintenance area for carbon monoxide, or was designated under section 107 of the Clean Air Act (42 U.S.C. 7407) as a nonattainment or maintenance area for particulate matter, 2.5 micrometers or less, or both, the weighted nonattainment or maintenance area population of the county, as determined under clauses (i) through (vi), or clause (viii), of subparagraph (A), shall be further multiplied by a factor of 1.2, or a second further factor of 1.2 if the area is designated as a nonattainment or maintenance area for both carbon monoxide and particulate matter, 2.5 micrometers or less.

‘(7) EXCEPTIONS FOR CERTAIN STATES-

‘(A) A State without a nonattainment or maintenance area shall not be subject to the requirements of this subsection.

‘(B) The amount of funds required to be set aside under paragraph (1) in a State that received a minimum apportionment for fiscal year 2009 under section 104(b)(2)(D), as in effect on the day before the date of enactment of the MAP-21, shall be based on the amount of funds such State would otherwise have been apportioned under section 104(b)(4) (excluding the amount of funds reserved under subsection (l)) but for the minimum apportionment in fiscal year 2009.

‘(k) Performance Plan-

‘(1) IN GENERAL- Each tier I metropolitan planning organization (as defined in section 134) representing a nonattainment or maintenance area shall develop a performance plan that--

‘(A) includes an area baseline level for traffic congestion and on-road mobile source emissions for which the area is in nonattainment or maintenance;

‘(B) identifies air quality and traffic congestion target levels based on measures established by the Secretary; and

‘(C) includes a description of projects identified for funding under this section and a description of how such projects will contribute to achieving emission and traffic congestion reduction targets.

‘(2) UPDATED PLANS-

‘(A) IN GENERAL- Performance plans shall be updated on the schedule required under paragraph (3).

‘(B) CONTENTS- An updated plan shall include a separate report that assesses the progress of the program of projects under the previous plan in achieving the air quality and traffic congestion targets of the previous plan.

‘(3) RULEMAKING- Not later than 18 months after the date of enactment of the MAP-21, the Secretary shall promulgate regulations to implement this subsection that identify performance measures for traffic congestion and on-road mobile source emissions, timelines for performance plans, and requirements under this section for assessing the implementation of projects carried out under this section.

‘(l) Additional Activities-

‘(1) RESERVATION OF FUNDS- Of the funds apportioned to a State under section 104(b)(4), a State shall reserve the amount of funds attributable to the inclusion of the 10 percent of surface transportation program funds apportioned to such State for fiscal year 2009 in the formula under section 104(b)(4) for projects under this subsection.

‘(2) ELIGIBLE PROJECTS- A State may obligate the funds reserved under this subsection for any of the following projects or activities:

‘(A) Transportation enhancements, as defined in section 101.

‘(B) The recreational trails program under section 206.

‘(C) The safe routes to school program under section 1404 of the SAFETEA-LU (23 U.S.C. 402 note; Public Law 109-59).

‘(D) Planning, designing, or constructing boulevards and other roadways largely in the right-of-way of former Interstate System routes or other divided highways.

‘(3) ALLOCATIONS OF FUNDS-

‘(A) CALCULATION- Of the funds reserved in a State under this subsection--

‘(i) 50 percent for a fiscal year shall be obligated under this subsection to any eligible entity in proportion to their relative shares of the population of the State--

‘(I) in urbanized areas of the State with an urbanized area population of over 200,000;

‘(II) in areas of the State other than urban areas with a population greater than 5,000; and

‘(III) in other areas of the State; and

‘(ii) 50 percent shall be obligated in any area of the State.

‘(B) METROPOLITAN AREAS- Funds attributed to an urbanized area under subparagraph (A)(i)(I) may be obligated in the metropolitan area established under section 134 that encompasses the urbanized area.

‘(C) DISTRIBUTION AMONG URBANIZED AREAS OF OVER 200,000 POPULATION-

‘(i) IN GENERAL- Except as provided in subparagraph (A)(ii), the amount of funds that a State is required to obligate under subparagraph (A)(i)(I) shall be obligated in urbanized areas described in subparagraph (A)(i)(I) based on the relative population of the areas.

‘(ii) OTHER FACTORS- The State may obligate the funds described in clause (i) based on other factors if the State and the relevant metropolitan planning organizations jointly apply to the Secretary for the permission to base the obligation on other factors and the Secretary grants the request.

‘(D) ACCESS TO FUNDS-

‘(i) IN GENERAL- Each State or metropolitan planning organization required to obligate funds in accordance with subparagraph (A) shall develop a competitive process to allow eligible entities to submit projects for funding that achieve the objectives of this subsection.

‘(ii) DEFINITION OF ELIGIBLE ENTITY- In this subsection, the term ‘eligible entity’ means--

‘(I) a local government;

‘(II) a regional transportation authority;

‘(III) a transit agency;

‘(IV) a natural resource or public land agency;

‘(V) a school district, local education agency, or school;

‘(VI) a tribal government; and

‘(VII) any other local or regional governmental entity with responsibility for or oversight of transportation or recreational trails (other than a tier I metropolitan planning organization or a State agency) that the State determines to be eligible, consistent with the goals of this subsection.

‘(E) SELECTION OF PROJECTS- Each tier I and tier II metropolitan planning organization shall select projects carried out within the boundaries of the applicable metropolitan planning area, in consultation with the relevant State, for funds reserved in a State under this subsection and suballocated to the metropolitan planning area under subparagraph (A)(i).

‘(4) FLEXIBILITY OF EXCESS RESERVED FUNDING- Beginning in the second fiscal year after the date of enactment of the MAP-21, if on August 1 of that fiscal year the unobligated balance of available funds apportioned to a State under section 104(b)(4) and reserved by a State under this subsection exceeds 150 percent of such reserved amount in such fiscal year, the State may thereafter obligate the amount of excess funds for any activity--

‘(A) that is eligible to receive funding under this subsection; or

‘(B) for which the Secretary has approved the obligation of funds for any State under this section.

‘(5) PROVISION OF ADEQUATE DATA, MODELING, AND SUPPORT- In any case in which a State requests reasonable technical support or otherwise requests data (including planning models and other modeling), clarification, or guidance regarding the content of any final rule or applicable regulation material to State actions under this section, the Secretary and any other agency shall provide that support, clarification, or guidance in a timely manner.

‘(6) TREATMENT OF PROJECTS- Notwithstanding any other provision of law, projects funded under this subsection shall be treated as projects on a Federal-aid highway under this chapter.

‘(7) CONTINUATION OF CERTAIN RECREATIONAL TRAILS PROJECTS- Each State that does not opt out of this paragraph shall--

‘(A) obligate an amount of funds reserved under this section equal to the amount of the funds apportioned to the State for fiscal year 2009 under section 104(h)(2) for projects relating to recreational trails under section 206;

‘(B) return 1 percent of those funds to the Secretary for the administration of that program; and

‘(C) comply with the provisions of the administration of the recreational trails program under section 206, including the use of apportioned funds described under subsection (d)(3)(A) of that section.

‘(8) STATE FLEXIBILITY- A State may opt out of the recreational trails program under paragraph (7) if the Governor of the State notifies the Secretary not later than 30 days prior to apportionments being made for any fiscal year.’.

SEC. 1114. TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM.

(a) In General- Section 165 of title 23, United States Code, is amended to read as follows:

‘Sec. 165. Territorial and Puerto Rico highway program

‘(a) Division of Funds- Of funds made available in a fiscal year for the territorial and Puerto Rico highway program--

‘(1) 75 percent shall be for the Puerto Rico highway program under subsection (b); and

‘(2) 25 percent shall be for the territorial highway program under subsection (c).

‘(b) Puerto Rico Highway Program-

‘(1) IN GENERAL- The Secretary shall allocate funds made available to carry out this subsection to the Commonwealth of Puerto Rico to carry out a highway program in the Commonwealth.

‘(2) TREATMENT OF FUNDS- Amounts made available to carry out this subsection for a fiscal year shall be administered as follows:

‘(A) APPORTIONMENT-

‘(i) IN GENERAL- For the purpose of imposing any penalty under this title or title 49, the amounts shall be treated as being apportioned to Puerto Rico under sections 104(b) and 144 (as in effect for fiscal year 1997) for each program funded under those sections in an amount determined by multiplying--

‘(I) the aggregate of the amounts for the fiscal year; by

‘(II) the proportion that--

‘(aa) the amount of funds apportioned to Puerto Rico for each such program for fiscal year 1997; bears to

‘(bb) the total amount of funds apportioned to Puerto Rico for all such programs for fiscal year 1997.

‘(ii) EXCEPTION- Funds identified under clause (i) as having been apportioned for the national highway system, the surface transportation program, and the Interstate maintenance program shall be deemed to have been apportioned 50 percent for the national highway performance program and 50 percent for the transportation mobility program for purposes of imposing such penalties.

‘(B) PENALTY- The amounts treated as being apportioned to Puerto Rico under each section referred to in subparagraph (A) shall be deemed to be required to be apportioned to Puerto Rico under that section for purposes of the imposition of any penalty under this title or title 49.

‘(C) ELIGIBLE USES OF FUNDS- Of amounts allocated to Puerto Rico for the Puerto Rico Highway Program for a fiscal year--

‘(i) at least 50 percent shall be available only for purposes eligible under section 119;

‘(ii) at least 25 percent shall be available only for purposes eligible under section 148; and

‘(iii) any remaining funds may be obligated for activities eligible under chapter 1.

‘(3) EFFECT ON APPORTIONMENTS- Except as otherwise specifically provided, Puerto Rico shall not be eligible to receive funds apportioned to States under this title.

‘(c) Territorial Highway Program-

‘(1) TERRITORY DEFINED- In this subsection, the term ‘territory’ means any of the following territories of the United States:

‘(A) American Samoa.

‘(B) The Commonwealth of the Northern Mariana Islands.

‘(C) Guam.

‘(D) The United States Virgin Islands.

‘(2) PROGRAM-

‘(A) IN GENERAL- Recognizing the mutual benefits that will accrue to the territories and the United States from the improvement of highways in the territories, the Secretary may carry out a program to assist each government of a territory in the construction and improvement of a system of arterial and collector highways, and necessary inter-island connectors, that is--

‘(i) designated by the Governor or chief executive officer of each territory; and

‘(ii) approved by the Secretary.

‘(B) FEDERAL SHARE- The Federal share of Federal financial assistance provided to territories under this subsection shall be in accordance with section 120(g).

‘(3) TECHNICAL ASSISTANCE-

‘(A) IN GENERAL- To continue a long-range highway development program, the Secretary may provide technical assistance to the governments of the territories to enable the territories, on a continuing basis--

‘(i) to engage in highway planning;

‘(ii) to conduct environmental evaluations;

‘(iii) to administer right-of-way acquisition and relocation assistance programs; and

‘(iv) to design, construct, operate, and maintain a system of arterial and collector highways, including necessary inter-island connectors.

‘(B) FORM AND TERMS OF ASSISTANCE- Technical assistance provided under subparagraph (A), and the terms for the sharing of information among territories receiving the technical assistance, shall be included in the agreement required by paragraph (5).

‘(4) NONAPPLICABILITY OF CERTAIN PROVISIONS-

‘(A) IN GENERAL- Except to the extent that provisions of this chapter are determined by the Secretary to be inconsistent with the needs of the territories and the intent of this subsection, this chapter (other than provisions of this chapter relating to the apportionment and allocation of funds) shall apply to funds made available under this subsection.

‘(B) APPLICABLE PROVISIONS- The agreement required by paragraph (5) for each territory shall identify the sections of this chapter that are applicable to that territory and the extent of the applicability of those sections.

‘(5) AGREEMENT-

‘(A) IN GENERAL- Except as provided in subparagraph (D), none of the funds made available under this subsection shall be available for obligation or expenditure with respect to any territory until the chief executive officer of the territory has entered into an agreement (including an agreement entered into under section 215 as in effect on the day before the enactment of this section) with the Secretary providing that the government of the territory shall--

‘(i) implement the program in accordance with applicable provisions of this chapter and paragraph (4);

‘(ii) design and construct a system of arterial and collector highways, including necessary inter-island connectors, in accordance with standards that are--

‘(I) appropriate for each territory; and

‘(II) approved by the Secretary;

‘(iii) provide for the maintenance of facilities constructed or operated under this subsection in a condition to adequately serve the needs of present and future traffic; and

‘(iv) implement standards for traffic operations and uniform traffic control devices that are approved by the Secretary.

‘(B) TECHNICAL ASSISTANCE- The agreement required by subparagraph (A) shall--

‘(i) specify the kind of technical assistance to be provided under the program;

‘(ii) include appropriate provisions regarding information sharing among the territories; and

‘(iii) delineate the oversight role and responsibilities of the territories and the Secretary.

‘(C) REVIEW AND REVISION OF AGREEMENT- The agreement entered into under subparagraph (A) shall be reevaluated and, as necessary, revised, at least every 2 years.

‘(D) EXISTING AGREEMENTS- With respect to an agreement under this subsection or an agreement entered into under section 215 of this title as in effect on the day before the date of enactment of this subsection--

‘(i) the agreement shall continue in force until replaced by an agreement entered into in accordance with subparagraph (A); and

‘(ii) amounts made available under this subsection under the existing agreement shall be available for obligation or expenditure so long as the agreement, or the existing agreement entered into under subparagraph (A), is in effect.

‘(6) ELIGIBLE USES OF FUNDS-

‘(A) IN GENERAL- Funds made available under this subsection may be used only for the following projects and activities carried out in a territory:

‘(i) Eligible transportation mobility program projects described in section 133(c).

‘(ii) Cost-effective, preventive maintenance consistent with section 116(d).

‘(iii) Ferry boats, terminal facilities, and approaches, in accordance with subsections (b) and (c) of section 129.

‘(iv) Engineering and economic surveys and investigations for the planning, and the financing, of future highway programs.

‘(v) Studies of the economy, safety, and convenience of highway use.

‘(vi) The regulation and equitable taxation of highway use.

‘(vii) Such research and development as are necessary in connection with the planning, design, and maintenance of the highway system.

‘(B) PROHIBITION ON USE OF FUNDS FOR ROUTINE MAINTENANCE- None of the funds made available under this subsection shall be obligated or expended for routine maintenance.

‘(7) LOCATION OF PROJECTS- Territorial highway program projects (other than those described in paragraphs (2), (4), (7), (8), (14), and (19) of section 133(c)) may not be undertaken on roads functionally classified as local.’.

(b) Conforming Amendments-

(1) CLERICAL AMENDMENT- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 165 and inserting the following:

‘165. Territorial and Puerto Rico highway program.’.

(2) OBSOLETE TEXT- Section 215 of that title, and the item relating to that section in the analysis for chapter 2, are repealed.

SEC. 1115. NATIONAL FREIGHT PROGRAM.

(a) In General- Chapter 1 of title 23, United States Code, is amended by adding at the end the following:

‘Sec. 167. National freight program

‘(a) National Freight Program- It is the policy of the United States to improve the condition and performance of the national freight network to ensure that the national freight network provides the foundation for the United States to compete in the global economy and achieve each goal described in subsection (b).

‘(b) Goals- The goals of the national freight program are--

‘(1) to invest in infrastructure improvements and to implement operational improvements that--

‘(A) strengthen the contribution of the national freight network to the economic competitiveness of the United States;

‘(B) reduce congestion; and

‘(C) increase productivity, particularly for domestic industries and businesses that create high-value jobs;

‘(2) to reduce the environmental impacts of freight movement on the national freight network;

‘(3) to improve the safety, security, and resilience of freight transportation;

‘(4) to improve the state of good repair of the national freight network;

‘(5) to use advanced technology to improve the safety and efficiency of the national freight network;

‘(6) to incorporate concepts of performance, innovation, competition, and accountability into the operation and maintenance of the national freight network; and

‘(7) to improve the economic efficiency of the national freight network.

‘(c) Establishment of Program-

‘(1) IN GENERAL- The Secretary shall establish and implement a national freight program in accordance with this section to strategically direct Federal resources toward improved system performance for efficient movement of freight on highways, including national highway system freight intermodal connectors and aerotropolis transportation systems.

‘(2) NETWORK COMPONENTS- The national freight network shall consist of--

‘(A) the primary freight network, as designated by the Secretary under subsection (f) (referred to in this section as the ‘primary freight network’) as most critical to the movement of freight;

‘(B) the portions of the Interstate System not designated as part of the primary freight network; and

‘(C) critical rural freight corridors established under subsection (g).

‘(d) Use of Apportioned Funds-

‘(1) PROJECTS ON THE NATIONAL FREIGHT NETWORK- At a minimum, following designation of the primary freight network under subsection (f), a State shall obligate funds apportioned under section 104(b)(5) to improve the movement of freight on the national freight network.

‘(2) LOCATION OF PROJECTS- A project carried out using funds apportioned under paragraph (1) shall be located--

‘(A) on the primary freight network as described under subsection (f);

‘(B) on a portion of the Interstate System not designated as primary freight network;

‘(C) on roads off of the Interstate System or primary freight network, if that use of funds will provide--

‘(i) a more significant improvement to freight movement on the Interstate System or the primary freight network;

‘(ii) critical freight access to the Interstate System or the primary freight network; or

‘(iii) mitigation of the congestion impacts from freight movement;

‘(D) on a national highway system freight intermodal connector;

‘(E) on critical rural freight corridors, as designated under subsection (g) (except that not more than 20 percent of the total anticipated apportionment of a State under section 104(b)(5) during fiscal years 2012 and 2013 may be used for projects on critical rural freight corridors); or

‘(F) within the boundaries of public and private intermodal facilities, but shall only include surface infrastructure necessary to facilitate direct intermodal interchange, transfer, and access into and out of the facility.

‘(3) PRIMARY FREIGHT NETWORK FUNDING- Beginning for each fiscal year after the Secretary designates the primary freight network, a State shall obligate from funds apportioned under section 104(b)(5) for the primary freight network the lesser of--

‘(A) an amount equal to the product obtained by multiplying--

‘(i) an amount equal to 110 percent of the apportionment of the State for the fiscal year under section 104(b)(5); and

‘(ii) the proportion that--

‘(I) the total designated primary freight network mileage of the State; bears to

‘(II) the sum of the designated primary freight network mileage of the State and the total Interstate system mileage of the State that is not designated as part of the primary freight network; or

‘(B) an amount equal to the total apportionment of the State under section 104(b)(5).

‘(e) Eligibility-

‘(1) ELIGIBLE PROJECTS- To be eligible for funding under this section, a project shall demonstrate the improvement made by the project to the efficient movement of freight on the national freight network.

‘(2) FREIGHT RAIL AND MARITIME PROJECTS-

‘(A) IN GENERAL- A State may obligate an amount equal to not more than 10 percent of the total apportionment to the State under section 104(b)(5) over the period of fiscal years 2012 and 2013 for public or private freight rail or maritime projects.

‘(B) ELIGIBILITY- For a State to be eligible to obligate funds in the manner described in subparagraph (A), the Secretary shall concur with the State that--

‘(i) the project for which the State seeks to obligate funds under this paragraph would make freight rail improvements to enhance cross-border commerce within 5 miles of the international border between the United States and Canada or Mexico or make significant improvement to freight movements on the national freight network; and

‘(ii) the public benefit of the project--

‘(I) exceeds the Federal investment; and

‘(II) provides a better return than a highway project on a segment of the primary freight network.

‘(3) ELIGIBLE PROJECT COSTS- A State may obligate funds apportioned to the State under section 104(b)(5) for the national freight program for any of the following costs of an eligible project:

‘(A) Development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities.

‘(B) Construction, reconstruction, rehabilitation, acquisition of real property (including land relating to the project and improvements to land), construction contingencies, acquisition of equipment, and operational improvements directly relating to improving system performance, including but not limited to any segment of the primary freight network that falls below the minimum level established pursuant to section 119(f).

‘(C) Intelligent transportation systems and other technology to improve the flow of freight.

‘(D) Efforts to reduce the environmental impacts of freight movement on the national freight network.

‘(E) Environmental mitigation.

‘(F) Railway-highway grade separation.

‘(G) Geometric improvements to interchanges and ramps.

‘(H) Truck-only lanes.

‘(I) Climbing and runaway truck lanes.

‘(J) Adding or widening of shoulders.

‘(K) Truck parking facilities eligible for funding under section 1401 of the MAP-21.

‘(L) Real-time traffic, truck parking, roadway condition, and multimodal transportation information systems.

‘(M) Electronic screening and credentialing systems for vehicles, including weigh-in-motion truck inspection technologies.

‘(N) Traffic signal optimization including synchronized and adaptive signals.

‘(O) Work zone management and information systems.

‘(P) Highway ramp metering.

‘(Q) Electronic cargo and border security technologies that improve truck freight movement.

‘(R) Intelligent transportation systems that would increase truck freight efficiencies inside the boundaries of intermodal facilities.

‘(S) Any other activities to improve the flow of freight on the national freight network.

‘(4) OTHER ELIGIBLE COSTS- In addition to eligible project costs, a State may use funds apportioned under section 104(b)(5) for--

‘(A) carrying out diesel retrofit or alternative fuel projects defined in section 149 for class 8 vehicles; or

‘(B) the necessary costs of--

‘(i) conducting analyses and data collection;

‘(ii) developing and updating performance targets to carry out this section; or

‘(iii) reporting to the Secretary to comply with subsection (i).

‘(5) ELIGIBLE PROJECT COSTS PRIOR TO DESIGNATION OF THE PRIMARY FREIGHT NETWORK- Prior to the date of designation of the primary freight network, a State may obligate funds apportioned to the State under section 104(b)(5) to improve freight movement on the Interstate System for--

‘(A) construction, reconstruction, resurfacing, restoration, and rehabilitation of segments of the Interstate System;

‘(B) operational improvements for segments of the Interstate System;

‘(C) construction of, and operational improvements for, a Federal-aid highway not on the Interstate System, and construction of a transit project eligible for assistance under chapter 53 of title 49, United States Code, if--

‘(i) the highway or transit project is in the same corridor as, and in proximity to a highway designated as a part of, the Interstate System;

‘(ii) the construction or improvements would improve the level of service on the Interstate System described in subparagraph (A) and improve freight traffic flow; and

‘(iii) the construction or improvements are more cost-effective for freight movement than an improvement to the Interstate System described in subparagraph (A);

‘(D) highway safety improvements for segments of the Interstate System;

‘(E) transportation planning in accordance with sections 134 and 135;

‘(F) the costs of conducting analysis and data collection to comply with this section;

‘(G) truck parking facilities eligible for funding under section 1401 of the MAP-21;

‘(H) infrastructure-based intelligent transportation systems capital improvements;

‘(I) environmental restoration and pollution abatement in accordance with section 328; and

‘(J) in accordance with all applicable Federal law (including regulations), participation in natural habitat and wetlands mitigation efforts relating to projects funded under this title, which may include participation in natural habitat and wetlands mitigation banks, contributions to statewide and regional efforts to conserve, restore, enhance, and create natural habitats and wetlands, and development of statewide and regional natural habitat and wetlands conservation and mitigation plans, including any such banks, efforts, and plans developed in accordance with applicable Federal law (including regulations), on the conditions that--

‘(i) contributions to those mitigation efforts may--

‘(I) take place concurrent with or in advance of project construction; and

‘(II) occur in advance of project construction only if the efforts are consistent with all applicable requirements of Federal law (including regulations) and State transportation planning processes; and

‘(ii) with respect to participation in a natural habitat or wetland mitigation effort relating to a project funded under this title that has an impact that occurs within the service area of a mitigation bank, preference is given, to the maximum extent practicable, to the use of the mitigation bank if the bank contains sufficient available credits to offset the impact and the bank is approved in accordance with applicable Federal law (including regulations).

‘(f) Designation of Primary Freight Network-

‘(1) INITIAL DESIGNATION OF PRIMARY FREIGHT NETWORK-

‘(A) DESIGNATION- Not later than 1 year after the date of enactment of this section, the Secretary shall designate a primary freight network--

‘(i) based on an inventory of national freight volume conducted by the Administrator of the Federal Highway Administration, in consultation with stakeholders, including system users, transport providers, and States; and

‘(ii) that shall be comprised of not more than 27,000 centerline miles of existing roadways that are most critical to the movement of freight.

‘(B) FACTORS FOR DESIGNATION- In designating the primary freight network, the Secretary shall consider--

‘(i) the origins and destinations of freight movement in the United States;

‘(ii) the total freight tonnage and value of freight moved by all modes of transportation;

‘(iii) the percentage of annual average daily truck traffic in the annual average daily traffic on principal arterials;

‘(iv) the annual average daily truck traffic on principal arterials;

‘(v) land and maritime ports of entry;

‘(vi) population centers; and

‘(vii) network connectivity.

‘(2) ADDITIONAL MILES ON PRIMARY FREIGHT NETWORK- In addition to the miles initially designated under paragraph (1), the Secretary may increase the number of miles designated as part of the primary freight network by not more than 3,000 additional centerline miles of roadways (which may include existing or planned roads) critical to future efficient movement of goods on the primary freight network.

‘(3) REDESIGNATION OF PRIMARY FREIGHT NETWORK- During calendar year 2015 and every 10 years thereafter, using the designation factors described in paragraph (1), the Secretary shall redesignate the primary freight network (including additional mileage described in subsection (f)(2)).

‘(g) Critical Rural Freight Corridors- A State may designate a road within the borders of the State as a critical rural freight corridor if the road--

‘(1) is a rural principal arterial roadway and has a minimum of 25 percent of the annual average daily traffic of the road measured in passenger vehicle equivalent units from trucks (FHWA vehicle class 8 to 13); or

‘(2) connects the primary freight network, a roadway described in paragraph (1), or Interstate System to facilities that handle more than--

‘(A) 50,000 20-foot equivalent units per year; or

‘(B) 500,000 tons per year of bulk commodities.

‘(h) National Freight Strategic Plan-

‘(1) INITIAL DEVELOPMENT OF NATIONAL FREIGHT STRATEGIC PLAN- Not later than 3 years after the date of enactment of this section, the Secretary shall, in consultation with appropriate public and private transportation stakeholders, develop and post on the Department of Transportation public website a national freight strategic plan that shall include--

‘(A) an assessment of the condition and performance of the national freight network;

‘(B) an identification of highway bottlenecks on the national freight network that create significant freight congestion problems, based on a quantitative methodology developed by the Secretary, which shall, at a minimum, include information from the Freight Analysis Network of the Federal Highway Administration;

‘(C) forecasts of freight volumes for the 20-year period beginning in the year during which the plan is issued;

‘(D) an identification of major trade gateways and national freight corridors that connect major population centers, trade gateways, and other major freight generators for current and forecasted traffic and freight volumes, the identification of which shall be revised, as appropriate, in subsequent plans;

‘(E) an assessment of statutory, regulatory, technological, institutional, financial, and other barriers to improved freight transportation performance (including opportunities for overcoming the barriers);

‘(F) best practices for improving the performance of the national freight network;

‘(G) best practices to mitigate the impacts of freight movement on communities;

‘(H) a process for addressing multistate projects and encouraging jurisdictions to collaborate; and

‘(I) strategies to improve maritime, freight rail, and freight intermodal connectivity.

‘(2) UPDATES TO NATIONAL FREIGHT STRATEGIC PLAN- Not later than 5 years after the date of completion of the first national freight strategic plan under paragraph (1), and every 5 years thereafter, the Secretary shall update and repost on the Department of Transportation public website a revised national freight strategic plan.

‘(i) Freight Performance Targets-

‘(1) RULEMAKING- Not later than 2 years after the date of enactment of this section, the Secretary, in consultation with State departments of transportation and other appropriate public and private transportation stakeholders, shall publish a rulemaking that establishes performance measures for freight movement on the primary freight network.

‘(2) STATE TARGETS AND REPORTING- Not later than 1 year after the date on which the Secretary publishes the rulemaking under paragraph (1), each State shall--

‘(A) develop and periodically update State performance targets for freight movement on the primary freight network--

‘(i) in consultation with appropriate public and private stakeholders; and

‘(ii) using measures determined by the Secretary; and

‘(B) for every 2-year period, submit to the Secretary a report that contains a description of--

‘(i) the progress of the State toward meeting the targets; and

‘(ii) the ways in which the State is addressing congestion at freight bottlenecks within the State.

‘(3) COMPLIANCE-

‘(A) PERFORMANCE TARGETS- To obligate funding apportioned under section 104(b)(5), each State shall develop performance targets in accordance with paragraph (2).

‘(B) DETERMINATION OF SECRETARY- If the Secretary determines that a State has not met or made significant progress toward meeting the performance targets of the State by the date that is 2 years after the date of establishment of the performance targets, until the date on which the Secretary determines that the State has met (or has made significant progress towards meeting) the State performance targets, the State shall submit to the Secretary, on a biennial basis, a freight performance improvement plan that includes--

‘(i) an identification of significant freight system trends, needs, and issues within the State;

‘(ii) a description of the freight policies and strategies that will guide the freight-related transportation investments of the State;

‘(iii) an inventory of freight bottlenecks within the State and a description of the ways in which the State is allocating funds to improve those bottlenecks; and

‘(iv) a description of the actions the State will undertake to meet the performance targets of the State.

‘(j) Freight Transportation Conditions and Performance Reports- Not later than 2 years after the date of enactment of this section, and biennially thereafter, the Secretary shall prepare a report that contains a description of the conditions and performance of the national freight network in the United States.

‘(k) Transportation Investment Data and Planning Tools-

‘(1) IN GENERAL- Not later than 1 year after the date of enactment of this section, the Secretary shall--

‘(A) begin development of new tools and improvement of existing tools or improve existing tools to support an outcome-oriented, performance-based approach to evaluate proposed freight-related and other transportation projects, including--

‘(i) methodologies for systematic analysis of benefits and costs;

‘(ii) tools for ensuring that the evaluation of freight-related and other transportation projects could consider safety, economic competitiveness, environmental sustainability, and system condition in the project selection process; and

‘(iii) other elements to assist in effective transportation planning;

‘(B) identify transportation-related model data elements to support a broad range of evaluation methods and techniques to assist in making transportation investment decisions; and

‘(C) at a minimum, in consultation with other relevant Federal agencies, consider any improvements to existing freight flow data collection efforts that could reduce identified freight data gaps and deficiencies and help improve forecasts of freight transportation demand.

‘(2) CONSULTATION- The Secretary shall consult with Federal, State, and other stakeholders to develop, improve, and implement the tools and collect the data in paragraph (1).

‘(l) Definition of Aerotropolis Transportation System- For the purposes of this section, the term ‘aerotropolis transportation system’ means a planned and coordinated multimodal freight and passenger transportation network that, as determined by the Secretary, provides efficient, cost-effective, sustainable, and intermodal connectivity to a defined region of economic significance centered around a major airport.

‘(m) Treatment of Projects- Notwithstanding any other provision of law, projects funded under this section shall be treated as projects on a Federal-aid highway under this chapter.’.

(b) Conforming Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by adding at the end the following:

‘167. National freight program.’.

SEC. 1116. FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS.

(a) In General- Chapter 2 of title 23, United States Code, is amended by striking sections 201 through 204 and inserting the following:

‘Sec. 201. Federal lands and tribal transportation programs

‘(a) Purpose- Recognizing the need for all public Federal and tribal transportation facilities to be treated under uniform policies similar to the policies that apply to Federal-aid highways and other public transportation facilities, the Secretary of Transportation, in collaboration with the Secretaries of the appropriate Federal land management agencies, shall coordinate a uniform policy for all public Federal and tribal transportation facilities that shall apply to Federal lands transportation facilities, tribal transportation facilities, and Federal lands access transportation facilities.

‘(b) Availability of Funds-

‘(1) AVAILABILITY- Funds authorized for the tribal transportation program, the Federal lands transportation program, and the Federal lands access program shall be available for contract upon apportionment, or on October 1 of the fiscal year for which the funds were authorized if no apportionment is required.

‘(2) AMOUNT REMAINING- Any amount remaining unexpended for a period of 3 years after the close of the fiscal year for which the funds were authorized shall lapse.

‘(3) OBLIGATIONS- The Secretary of the department responsible for the administration of funds under this subsection may incur obligations, approve projects, and enter into contracts under such authorizations, which shall be considered to be contractual obligations of the United States for the payment of the cost thereof, the funds of which shall be considered to have been expended when obligated.

‘(4) EXPENDITURE-

‘(A) IN GENERAL- Any funds authorized for any fiscal year after the date of enactment of this section under the Federal lands transportation program, the Federal lands access program, and the tribal transportation program shall be considered to have been expended if a sum equal to the total of the sums authorized for the fiscal year and previous fiscal years have been obligated.

‘(B) CREDITED FUNDS- Any funds described in subparagraph (A) that are released by payment of final voucher or modification of project authorizations shall be--

‘(i) credited to the balance of unobligated authorizations; and

‘(ii) immediately available for expenditure.

‘(5) APPLICABILITY- This section shall not apply to funds authorized before the date of enactment of this paragraph.

‘(6) CONTRACTUAL OBLIGATION-

‘(A) IN GENERAL- Notwithstanding any other provision of law (including regulations), the authorization by the Secretary, or the Secretary of the appropriate Federal land management agency if the agency is the contracting office, of engineering and related work for the development, design, and acquisition associated with a construction project, whether performed by contract or agreement authorized by law, or the approval by the Secretary of plans, specifications, and estimates for construction of a project, shall be considered to constitute a contractual obligation of the Federal Government to pay the total eligible cost of--

‘(i) any project funded under this title; and

‘(ii) any project funded pursuant to agreements authorized by this title or any other title.

‘(B) EFFECT- Nothing in this paragraph--

‘(i) affects the application of the Federal share associated with the project being undertaken under this section; or

‘(ii) modifies the point of obligation associated with Federal salaries and expenses.

‘(7) FEDERAL SHARE-

‘(A) TRIBAL AND FEDERAL LANDS TRANSPORTATION PROGRAM- The Federal share of the cost of a project carried out under the Federal lands transportation program or the tribal transportation program shall be 100 percent.

‘(B) FEDERAL LANDS ACCESS PROGRAM- The Federal share of the cost of a project carried out under the Federal lands access program shall be determined in accordance with section 120.

‘(c) Transportation Planning-

‘(1) TRANSPORTATION PLANNING PROCEDURES- In consultation with the Secretary of each appropriate Federal land management agency, the Secretary shall implement transportation planning procedures for Federal lands and tribal transportation facilities that are consistent with the planning processes required under sections 134 and 135.

‘(2) APPROVAL OF TRANSPORTATION IMPROVEMENT PROGRAM- The transportation improvement program developed as a part of the transportation planning process under this section shall be approved by the Secretary.

‘(3) INCLUSION IN OTHER PLANS- Each regionally significant tribal transportation program, Federal lands transportation program, and Federal lands access program project shall be--

‘(A) developed in cooperation with State and metropolitan planning organizations; and

‘(B) included in appropriate tribal transportation program plans, Federal lands transportation program plans, Federal lands access program plans, State and metropolitan plans, and transportation improvement programs.

‘(4) INCLUSION IN STATE PROGRAMS- The approved tribal transportation program, Federal lands transportation program, and Federal lands access program transportation improvement programs shall be included in appropriate State and metropolitan planning organization plans and programs without further action on the transportation improvement program.

‘(5) ASSET MANAGEMENT- The Secretary and the Secretary of each appropriate Federal land management agency shall, to the extent appropriate, implement safety, bridge, pavement, and congestion management systems for facilities funded under the tribal transportation program and the Federal lands transportation program in support of asset management.

‘(6) DATA COLLECTION-

‘(A) DATA COLLECTION- The Secretaries of the appropriate Federal land management agencies shall collect and report data necessary to implement the Federal lands transportation program, the Federal lands access program, and the tribal transportation program, including--

‘(i) inventory and condition information on Federal lands transportation facilities and tribal transportation facilities; and

‘(ii) bridge inspection and inventory information on any Federal bridge open to the public.

‘(B) STANDARDS- The Secretary, in coordination with the Secretaries of the appropriate Federal land management agencies, shall define the collection and reporting data standards.

‘(7) ADMINISTRATIVE EXPENSES- To implement the activities described in this subsection, including direct support of transportation planning activities among Federal land management agencies, the Secretary may use not more than 5 percent for each fiscal year of the funds authorized for programs under sections 203 and 204.

‘(d) Reimbursable Agreements- In carrying out work under reimbursable agreements with any State, local, or tribal government under this title, the Secretary--

‘(1) may, without regard to any other provision of law (including regulations), record obligations against accounts receivable from the entity; and

‘(2) shall credit amounts received from the entity to the appropriate account, which shall occur not later than 90 days after the date of the original request by the Secretary for payment.

‘(e) Transfers-

‘(1) IN GENERAL- To enable the efficient use of funds made available for the Federal lands transportation program and the Federal lands access program, the funds may be transferred by the Secretary within and between each program with the concurrence of, as appropriate--

‘(A) the Secretary;

‘(B) the affected Secretaries of the respective Federal land management agencies;

‘(C) State departments of transportation; and

‘(D) local government agencies.

‘(2) CREDIT- The funds described in paragraph (1) shall be credited back to the loaning entity with funds that are currently available for obligation at the time of the credit.

‘Sec. 202. Tribal transportation program

‘(a) Use of Funds-

‘(1) IN GENERAL- Funds made available under the tribal transportation program shall be used by the Secretary of Transportation and the Secretary of the Interior to pay the costs of--

‘(A)(i) transportation planning, research, maintenance, engineering, rehabilitation, restoration, construction, and reconstruction of tribal transportation facilities;

‘(ii) adjacent vehicular parking areas;

‘(iii) interpretive signage;

‘(iv) acquisition of necessary scenic easements and scenic or historic sites;

‘(v) provisions for pedestrians and bicycles;

‘(vi) environmental mitigation in or adjacent to tribal land--

‘(I) to improve public safety and reduce vehicle-caused wildlife mortality while maintaining habitat connectivity; and

‘(II) to mitigate the damage to wildlife, aquatic organism passage, habitat, and ecosystem connectivity, including the costs of constructing, maintaining, replacing, or removing culverts and bridges, as appropriate;

‘(vii) construction and reconstruction of roadside rest areas, including sanitary and water facilities; and

‘(viii) other appropriate public road facilities as determined by the Secretary;

‘(B) operation and maintenance of transit programs and facilities that are located on, or provide access to, tribal land, or are administered by a tribal government; and

‘(C) any transportation project eligible for assistance under this title that is located within, or that provides access to, tribal land, or is associated with a tribal government.

‘(2) CONTRACT- In connection with an activity described in paragraph (1), the Secretary and the Secretary of the Interior may enter into a contract or other appropriate agreement with respect to the activity with--

‘(A) a State (including a political subdivision of a State); or

‘(B) an Indian tribe.

‘(3) INDIAN LABOR- Indian labor may be employed, in accordance with such rules and regulations as may be promulgated by the Secretary of the Interior, to carry out any construction or other activity described in paragraph (1).

‘(4) FEDERAL EMPLOYMENT- No maximum limitation on Federal employment shall be applicable to the construction or improvement of tribal transportation facilities.

‘(5) FUNDS FOR CONSTRUCTION AND IMPROVEMENT- All funds made available for the construction and improvement of tribal transportation facilities shall be administered in conformity with regulations and agreements jointly approved by the Secretary and the Secretary of the Interior.

‘(6) TRIBAL TECHNICAL ASSISTANCE CENTERS- The Secretary of the Interior may reserve amounts from administrative funds of the Bureau of Indian Affairs that are associated with the tribal transportation program to fund tribal technical assistance centers under section 504(b).

‘(7) MAINTENANCE-

‘(A) USE OF FUNDS- Notwithstanding any other provision of this title, of the amount of funds allocated to an Indian tribe from the tribal transportation program, for the purpose of maintenance (excluding road sealing, which shall not be subject to any limitation), the Secretary shall not use an amount more than the greater of--

‘(i) an amount equal to 25 percent; or

‘(ii) $500,000.

‘(B) RESPONSIBILITY OF BUREAU OF INDIAN AFFAIRS AND SECRETARY OF THE INTERIOR-

‘(i) BUREAU OF INDIAN AFFAIRS- The Bureau of Indian Affairs shall retain primary responsibility, including annual funding request responsibility, for Bureau of Indian Affairs road maintenance programs on Indian reservations.

‘(ii) SECRETARY OF THE INTERIOR- The Secretary of the Interior shall ensure that funding made available under this subsection for maintenance of tribal transportation facilities for each fiscal year is supplementary to, and not in lieu of, any obligation of funds by the Bureau of Indian Affairs for road maintenance programs on Indian reservations.

‘(C) TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS-

‘(i) IN GENERAL- An Indian tribe and a State may enter into a road maintenance agreement under which an Indian tribe shall assume the responsibility of the State for--

‘(I) tribal transportation facilities; and

‘(II) roads providing access to tribal transportation facilities.

‘(ii) REQUIREMENTS- Agreements entered into under clause (i) shall--

‘(I) be negotiated between the State and the Indian tribe; and

‘(II) not require the approval of the Secretary.

‘(8) COOPERATION-

‘(A) IN GENERAL- The cooperation of States, counties, or other local subdivisions may be accepted in construction and improvement.

‘(B) FUNDS RECEIVED- Any funds received from a State, county, or local subdivision shall be credited to appropriations available for the tribal transportation program.

‘(9) COMPETITIVE BIDDING-

‘(A) CONSTRUCTION-

‘(i) IN GENERAL- Subject to clause (ii) and subparagraph (B), construction of each project shall be performed by contract awarded by competitive bidding.

‘(ii) EXCEPTION- Clause (i) shall not apply if the Secretary or the Secretary of the Interior affirmatively finds that, under the circumstances relating to the project, a different method is in the public interest.

‘(B) APPLICABILITY- Notwithstanding subparagraph (A), section 23 of the Act of June 25, 1910 (25 U.S.C. 47) and section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e(b)) shall apply to all funds administered by the Secretary of the Interior that are appropriated for the construction and improvement of tribal transportation facilities.

‘(b) Funds Distribution-

‘(1) NATIONAL TRIBAL TRANSPORTATION FACILITY INVENTORY-

‘(A) IN GENERAL- The Secretary of the Interior, in cooperation with the Secretary, shall maintain a comprehensive national inventory of tribal transportation facilities that are eligible for assistance under the tribal transportation program.

‘(B) TRANSPORTATION FACILITIES INCLUDED IN THE INVENTORY- For purposes of identifying the tribal transportation system and determining the relative transportation needs among Indian tribes, the Secretary shall include, at a minimum, transportation facilities that are eligible for assistance under the tribal transportation program that an Indian tribe has requested, including facilities that--

‘(i) were included in the Bureau of Indian Affairs system inventory prior to October 1, 2004;

‘(ii) are owned by an Indian tribal government;

‘(iii) are owned by the Bureau of Indian Affairs;

‘(iv) were constructed or reconstructed with funds from the Highway Account of the Transportation Trust Fund under the Indian reservation roads program since 1983;

‘(v) are public roads or bridges within the exterior boundary of Indian reservations, Alaska Native villages, and other recognized Indian communities (including communities in former Indian reservations in the State of Oklahoma) in which the majority of residents are American Indians or Alaska Natives;

‘(vi) are public roads within or providing access to an Indian reservation or Indian trust land or restricted Indian land that is not subject to fee title alienation without the approval of the Federal Government, or Indian or Alaska Native villages, groups, or communities in which Indians and Alaska Natives reside, whom the Secretary of the Interior has determined are eligible for services generally available to Indians under Federal laws specifically applicable to Indians; or

‘(vii) are primary access routes proposed by tribal governments, including roads between villages, roads to landfills, roads to drinking water sources, roads to natural resources identified for economic development, and roads that provide access to intermodal terminals, such as airports, harbors, or boat landings.

‘(C) LIMITATION ON PRIMARY ACCESS ROUTES- For purposes of this paragraph, a proposed primary access route is the shortest practicable route connecting 2 points of the proposed route.

‘(D) ADDITIONAL FACILITIES- Nothing in this paragraph precludes the Secretary from including additional transportation facilities that are eligible for funding under the tribal transportation program in the inventory used for the national funding allocation if such additional facilities are included in the inventory in a uniform and consistent manner nationally.

‘(E) BRIDGES- All bridges in the inventory shall be recorded in the national bridge inventory administered by the Secretary under section 144.

‘(2) REGULATIONS- Notwithstanding sections 563(a) and 565(a) of title 5, the Secretary of the Interior shall maintain any regulations governing the tribal transportation program.

‘(3) BASIS FOR FUNDING FORMULA-

‘(A) BASIS-

‘(i) IN GENERAL- After making the set asides authorized under subsections (c), (d), and (e) on October 1 of each fiscal year, the Secretary shall distribute the remainder authorized to be appropriated for the tribal transportation program under this section among Indian tribes as follows:

‘(I) For fiscal year 2012--

‘(aa) for each Indian tribe, 80 percent of the total relative need distribution factor and population adjustment factor for the fiscal year 2011 funding amount made available to that Indian tribe; and

‘(bb) the remainder using tribal shares as described in subparagraphs (B) and (C).

‘(II) For fiscal year 2013--

‘(aa) for each Indian tribe, 60 percent of the total relative need distribution factor and population adjustment factor for the fiscal year 2011 funding amount made available to that Indian tribe; and

‘(bb) the remainder using tribal shares as described in subparagraphs (B) and (C).

‘(III) For fiscal year 2014--

‘(aa) for each Indian tribe, 40 percent of the total relative need distribution factor and population adjustment factor for the fiscal year 2011 funding amount made available to that Indian tribe; and

‘(bb) the remainder using tribal shares as described in subparagraphs (B) and (C).

‘(IV) For fiscal year 2015--

‘(aa) for each Indian tribe, 20 percent of the total relative need distribution factor and population adjustment factor for the fiscal year 2011 funding amount made available to that Indian tribe; and

‘(bb) the remainder using tribal shares as described in subparagraphs (B) and (C).

‘(V) For fiscal year 2016 and thereafter, using tribal shares as described in subparagraphs (B) and (C).

‘(ii) TRIBAL HIGH PRIORITY PROJECTS- The High Priority Projects program as included in the Tribal Transportation Allocation Methodology of part 170 of title 25, Code of Federal Regulations (as in effect on the date of enactment of the MAP-21), shall not continue in effect.

‘(B) TRIBAL SHARES- Tribal shares under this program shall be determined using the national tribal transportation facility inventory as calculated for fiscal year 2012, and the most recent data on American Indian and Alaska Native population within each Indian tribe’s American Indian/Alaska Native Reservation or Statistical Area, as computed under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.), in the following manner:

‘(i) 30 percent in the ratio that the total eligible lane mileage in each tribe bears to the total eligible lane mileage of all American Indians and Alaskan Natives. For the purposes of this calculation--

‘(I) eligible lane mileage shall be computed based on the inventory described in paragraph (1), using only facilities included in the inventory described in clause (i), (ii), or (iii) of paragraph (1)(B); and

‘(II) paved roads and gravel surfaced roads are deemed to equal 2 lane miles per mile of inventory, and earth surfaced roads and unimproved roads shall be deemed to equal 1 lane mile per mile of inventory.

‘(ii) 35 percent in the ratio that the total population in each tribe bears to the total population of all American Indians and Alaskan Natives.

‘(iii) 35 percent shall be divided equally among each Bureau of Indian Affairs region for distribution of tribal shares as follows:

‘(I) 1/4 of 1 percent shall be distributed equally among Indian tribes with populations of 1 to 25.

‘(II) 3/4 of 1 percent shall be distributed equally among Indian tribes with populations of 26 to 100.

‘(III) 3 3/4 percent shall be distributed equally among Indian tribes with populations of 101 to 1,000.

‘(IV) 20 percent shall be distributed equally among Indian tribes with populations of 1,001 to 10,000.

‘(V) 74 3/4 percent shall be distributed equally among Indian tribes with populations of 10,001 to 60,000 where 3 or more Indian tribes occupy this category in a single Bureau of Indian Affairs region, and Bureau of Indian Affairs regions containing less than 3 Indian tribes in this category shall receive funding in accordance with subclause (IV) and clause (iv).

‘(VI) 1/2 of 1 percent shall be distributed equally among Indian tribes with populations of 60,001 or more.

‘(iv) For a Bureau of Indian Affairs region that has no Indian tribes meeting the population criteria under 1 or more of subclauses (I) through (VI) of clause (iii), the region shall redistribute any funds subject to such clause or clauses among any such clauses for which the region has Indian tribes meeting such criteria proportionally in accordance with the percentages listed in such clauses until such funds are completely distributed.

‘(C) TRIBAL SUPPLEMENTAL FUNDING-

‘(i) TRIBAL SUPPLEMENTAL FUNDING AMOUNT- Of funds made available for each fiscal year for the tribal transportation program, the Secretary shall set aside the following amount for a tribal supplemental program:

‘(I) If the amount made available for the tribal transportation program is less than or equal to $275,000,000, 30 percent of such amount.

‘(II) If the amount made available for the tribal transportation program exceeds $275,000,000--

‘(aa) $82,500,000; plus

‘(bb) 12.5 percent of the amount made available for the tribal transportation program in excess of $275,000,000.

‘(ii) TRIBAL SUPPLEMENTAL ALLOCATION- The Secretary shall distribute tribal supplemental funds as follows:

‘(I) DISTRIBUTION AMONG REGIONS- Of the amounts set aside under clause (i), the Secretary shall distribute to each region of the Bureau of Indian Affairs a share of tribal supplemental funds in proportion to the regional total of tribal shares based on the cumulative tribal shares of all Indian tribes within such region under subparagraph (B).

‘(II) DISTRIBUTION WITHIN A REGION- Of the amount that a region receives under subclause (I), the Secretary shall distribute tribal supplemental funding among Indian tribes within such region as follows:

‘(aa) TRIBAL SUPPLEMENTAL AMOUNTS- The Secretary shall determine--

‘(AA) which such Indian tribes would be entitled under subparagraph (A) to receive in a fiscal year less funding than they would receive in fiscal year 2011 pursuant to the Tribal Transportation Allocation Methodology described in subpart C of part 170 of title 25, Code of Federal Regulations (as in effect on the date of enactment of the MAP-21); and

‘(BB) the combined amount that such Indian tribes would be entitled to receive in fiscal year 2011 pursuant to such Tribal Transportation Allocation Methodology in excess of the amount that they would be entitled to receive in the fiscal year under subparagraph (B); and

‘(bb) Subject to subclause (III), distribute to each Indian tribe that meets the criteria described in item (aa)(AA) a share of funding under this subparagraph in proportion to the share of the combined amount determined under item (aa)(BB) attributable to such Indian tribe.

‘(III) CEILING- An Indian tribe may not receive under subclause (II) and based on its tribal share under subparagraph (A) a combined amount that exceeds the amount that such Indian tribe would be entitled to receive in fiscal year 2011 pursuant to the Tribal Transportation Allocation Methodology described in subpart C of part 170 of title 25, Code of Federal Regulations (as in effect on the date of enactment of the MAP-21).

‘(IV) OTHER AMOUNTS- If the amount made available for a region under subclause (I) exceeds the amount distributed among Indian tribes within that region under subclause (II), the Secretary shall distribute the remainder of such region’s funding under such subclause among all Indian tribes in that region in proportion to the combined amount that each such Indian tribe received under subparagraph (A) and subclauses (I), (II), and (III).

‘(4) TRANSFERRED FUNDS-

‘(A) IN GENERAL- Not later than 30 days after the date on which funds are made available to the Secretary of the Interior under this paragraph, the funds shall be distributed to, and made available for immediate use by, eligible Indian tribes, in accordance with the formula for distribution of funds under the tribal transportation program.

‘(B) USE OF FUNDS- Notwithstanding any other provision of this section, funds made available to Indian tribes for tribal transportation facilities shall be expended on projects identified in a transportation improvement program approved by the Secretary.

‘(5) HEALTH AND SAFETY ASSURANCES- Notwithstanding any other provision of law, an Indian tribal government may approve plans, specifications, and estimates and commence road and bridge construction with funds made available from the tribal transportation program through a contract or agreement under Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.), if the Indian tribal government--

‘(A) provides assurances in the contract or agreement that the construction will meet or exceed applicable health and safety standards;

‘(B) obtains the advance review of the plans and specifications from a State-licensed civil engineer that has certified that the plans and specifications meet or exceed the applicable health and safety standards; and

‘(C) provides a copy of the certification under subparagraph (A) to the Deputy Assistant Secretary for Tribal Government Affairs, Department of Transportation, or the Assistant Secretary for Indian Affairs, Department of the Interior, as appropriate.

‘(6) CONTRACTS AND AGREEMENTS WITH INDIAN TRIBES-

‘(A) IN GENERAL- Notwithstanding any other provision of law or any interagency agreement, program guideline, manual, or policy directive, all funds made available through the Secretary of the Interior under this chapter and section 125(e) for tribal transportation facilities to pay for the costs of programs, services, functions, and activities, or portions of programs, services, functions, or activities, that are specifically or functionally related to the cost of planning, research, engineering, and construction of any tribal transportation facility shall be made available, upon request of the Indian tribal government, to the Indian tribal government for contracts and agreements for such planning, research, engineering, and construction in accordance with Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).

‘(B) EXCLUSION OF AGENCY PARTICIPATION- All funds, including contract support costs, for programs, functions, services, or activities, or portions of programs, services, functions, or activities, including supportive administrative functions that are otherwise contractible to which subparagraph (A) applies, shall be paid in accordance with subparagraph (A), without regard to the organizational level at which the Department of the Interior has previously carried out such programs, functions, services, or activities.

‘(7) CONTRACTS AND AGREEMENTS WITH INDIAN TRIBES-

‘(A) IN GENERAL- Notwithstanding any other provision of law or any interagency agreement, program guideline, manual, or policy directive, all funds made available through the Secretary of the Interior to an Indian tribal government under this chapter for a tribal transportation facility program or project shall be made available, on the request of the Indian tribal government, to the Indian tribal government for use in carrying out, in accordance with the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.), contracts and agreements for the planning, research, design, engineering, construction, and maintenance relating to the program or project.

‘(B) EXCLUSION OF AGENCY PARTICIPATION- In accordance with subparagraph (A), all funds, including contract support costs, for a program or project to which subparagraph (A) applies shall be paid to the Indian tribal government without regard to the organizational level at which the Department of the Interior has previously carried out, or the Department of Transportation has previously carried out under the tribal transportation program, the programs, functions, services, or activities involved.

‘(C) CONSORTIA- Two or more Indian tribes that are otherwise eligible to participate in a program or project to which this chapter applies may form a consortium to be considered as a single Indian tribe for the purpose of participating in the project under this section.

‘(D) SECRETARY AS SIGNATORY- Notwithstanding any other provision of law, the Secretary is authorized to enter into a funding agreement with an Indian tribal government to carry out a tribal transportation facility program or project under subparagraph (A) that is located on an Indian reservation or provides access to the reservation or a community of the Indian tribe.

‘(E) FUNDING- The amount an Indian tribal government receives for a program or project under subparagraph (A) shall equal the sum of the funding that the Indian tribal government would otherwise receive for the program or project in accordance with the funding formula established under this subsection and such additional amounts as the Secretary determines equal the amounts that would have been withheld for the costs of the Bureau of Indian Affairs for administration of the program or project.

‘(F) ELIGIBILITY-

‘(i) IN GENERAL- Subject to clause (ii) and the approval of the Secretary, funds may be made available under subparagraph (A) to an Indian tribal government for a program or project in a fiscal year only if the Indian tribal government requesting such funds demonstrates to the satisfaction of the Secretary financial stability and financial management capability during the 3 fiscal years immediately preceding the fiscal year for which the request is being made.

‘(ii) CONSIDERATIONS- An Indian tribal government that had no uncorrected significant and material audit exceptions in the required annual audit of the contracts or self-governance funding agreements made by the Indian tribe with any Federal agency under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) during the 3-fiscal year period referred in clause (i) shall be conclusive evidence of the financial stability and financial management capability of the Indian tribe for purposes of clause (i).

‘(G) ASSUMPTION OF FUNCTIONS AND DUTIES- An Indian tribal government receiving funding under subparagraph (A) for a program or project shall assume all functions and duties that the Secretary of the Interior would have performed with respect to a program or project under this chapter, other than those functions and duties that inherently cannot be legally transferred under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).

‘(H) POWERS- An Indian tribal government receiving funding under subparagraph (A) for a program or project shall have all powers that the Secretary of the Interior would have exercised in administering the funds transferred to the Indian tribal government for such program or project under this section if the funds had not been transferred, except to the extent that such powers are powers that inherently cannot be legally transferred under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).

‘(I) DISPUTE RESOLUTION- In the event of a disagreement between the Secretary or the Secretary of the Interior and an Indian tribe over whether a particular function, duty, or power may be lawfully transferred to the Indian tribe under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.), the Indian tribe shall have the right to pursue all alternative dispute resolution and appeal procedures authorized by that Act, including regulations issued to carry out the Act.

‘(J) TERMINATION OF CONTRACT OR AGREEMENT- On the date of the termination of a contract or agreement under this section by an Indian tribal government, the Secretary shall transfer all funds that would have been allocated to the Indian tribal government under the contract or agreement to the Secretary of the Interior to provide continued transportation services in accordance with applicable law.

‘(c) Planning-

‘(1) IN GENERAL- For each fiscal year, not more than 2 percent of the funds made available for the tribal transportation program shall be allocated among Indian tribal governments that apply for transportation planning pursuant to the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).

‘(2) REQUIREMENT- An Indian tribal government, in cooperation with the Secretary of the Interior and, as appropriate, with a State, local government, or metropolitan planning organization, shall carry out a transportation planning process in accordance with section 201(c).

‘(3) SELECTION AND APPROVAL OF PROJECTS- A project funded under this section shall be--

‘(A) selected by the Indian tribal government from the transportation improvement program; and

‘(B) subject to the approval of the Secretary of the Interior and the Secretary.

‘(d) Tribal Transportation Facility Bridges-

‘(1) NATIONWIDE PRIORITY PROGRAM- The Secretary shall maintain a nationwide priority program for improving deficient bridges eligible for the tribal transportation program.

‘(2) FUNDING- Before making any distribution under subsection (b), the Secretary shall set aside not more than 2 percent of the funds made available under the tribal transportation program for each fiscal year to be allocated--

‘(A) to carry out any planning, design, engineering, preconstruction, construction, and inspection of a project to replace, rehabilitate, seismically retrofit, paint, apply calcium magnesium acetate, sodium acetate/formate, or other environmentally acceptable, minimally corrosive anti-icing and deicing composition; or

‘(B) to implement any countermeasure for deficient tribal transportation facility bridges, including multiple-pipe culverts.

‘(3) ELIGIBLE BRIDGES- To be eligible to receive funding under this subsection, a bridge described in paragraph (1) shall--

‘(A) have an opening of not less than 20 feet;

‘(B) be classified as a tribal transportation facility; and

‘(C) be structurally deficient or functionally obsolete.

‘(4) APPROVAL REQUIREMENT- The Secretary may make funds available under this subsection for preliminary engineering, construction, and construction engineering activities after approval of required documentation and verification of eligibility in accordance with this title.

‘(e) Safety-

‘(1) FUNDING- Before making any distribution under subsection (b), the Secretary shall set aside not more than 2 percent of the funds made available under the tribal transportation program for each fiscal year to be allocated based on an identification and analysis of highway safety issues and opportunities on tribal land, as determined by the Secretary, on application of the Indian tribal governments for eligible projects described in section 148(a)(4).

‘(2) PROJECT SELECTION- An Indian tribal government, in cooperation with the Secretary of the Interior and, as appropriate, with a State, local government, or metropolitan planning organization, shall select projects from the transportation improvement program, subject to the approval of the Secretary and the Secretary of the Interior.

‘(f) Federal-aid Eligible Projects- Before approving as a project on a tribal transportation facility any project eligible for funds apportioned under section 104 in a State, the Secretary shall, for projects on tribal transportation facilities, determine that the obligation of funds for the project is supplementary to and not in lieu of the obligation of a fair and equitable share of funds apportioned to the State under section 104.

‘Sec. 203. Federal lands transportation program

‘(a) Use of Funds-

‘(1) IN GENERAL- Funds made available under the Federal lands transportation program shall be used by the Secretary of Transportation and the Secretary of the appropriate Federal land management agency to pay the costs of--

‘(A) program administration, transportation planning, research, preventive maintenance, engineering, rehabilitation, restoration, construction, and reconstruction of Federal lands transportation facilities, and--

‘(i) adjacent vehicular parking areas;

‘(ii) acquisition of necessary scenic easements and scenic or historic sites;

‘(iii) provision for pedestrians and bicycles;

‘(iv) environmental mitigation in or adjacent to Federal land open to the public--

‘(I) to improve public safety and reduce vehicle-caused wildlife mortality while maintaining habitat connectivity; and

‘(II) to mitigate the damage to wildlife, aquatic organism passage, habitat, and ecosystem connectivity, including the costs of constructing, maintaining, replacing, or removing culverts and bridges, as appropriate;

‘(v) construction and reconstruction of roadside rest areas, including sanitary and water facilities;

‘(vi) congestion mitigation; and

‘(vii) other appropriate public road facilities, as determined by the Secretary;

‘(B) operation and maintenance of transit facilities; and

‘(C) any transportation project eligible for assistance under this title that is on a public road within or adjacent to, or that provides access to, Federal lands open to the public.

‘(2) CONTRACT- In connection with an activity described in paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency may enter into a contract or other appropriate agreement with respect to the activity with--

‘(A) a State (including a political subdivision of a State); or

‘(B) an Indian tribe.

‘(3) ADMINISTRATION- All appropriations for the construction and improvement of Federal lands transportation facilities shall be administered in conformity with regulations and agreements jointly approved by the Secretary and the Secretary of the appropriate Federal land managing agency.

‘(4) COOPERATION-

‘(A) IN GENERAL- The cooperation of States, counties, or other local subdivisions may be accepted in construction and improvement.

‘(B) FUNDS RECEIVED- Any funds received from a State, county, or local subdivision shall be credited to appropriations available for the class of Federal lands transportation facilities to which the funds were contributed.

‘(5) COMPETITIVE BIDDING-

‘(A) IN GENERAL- Subject to subparagraph (B), construction of each project shall be performed by contract awarded by competitive bidding.

‘(B) EXCEPTION- Subparagraph (A) shall not apply if the Secretary or the Secretary of the appropriate Federal land management agency affirmatively finds that, under the circumstances relating to the project, a different method is in the public interest.

‘(b) Agency Program Distributions-

‘(1) IN GENERAL- On October 1, 2011, and on October 1 of each fiscal year thereafter, the Secretary shall allocate the sums authorized to be appropriated for the fiscal year for the Federal lands transportation program on the basis of applications of need, as determined by the Secretary--

‘(A) in consultation with the Secretaries of the applicable Federal land management agencies; and

‘(B) in coordination with the transportation plans required under section 201 of the respective transportation systems of--

‘(i) the National Park Service;

‘(ii) the Forest Service;

‘(iii) the United States Fish and Wildlife Service;

‘(iv) the Corps of Engineers; and

‘(v) the Bureau of Land Management.

‘(2) APPLICATIONS-

‘(A) REQUIREMENTS- Each application submitted by a Federal land management agency shall include proposed programs at various potential funding levels, as defined by the Secretary following collaborative discussions with applicable Federal land management agencies.

‘(B) CONSIDERATION BY SECRETARY- In evaluating an application submitted under subparagraph (A), the Secretary shall consider the extent to which the programs support--

‘(i) the transportation goals of--

‘(I) a state of good repair of transportation facilities;

‘(II) a reduction of bridge deficiencies, and

‘(III) an improvement of safety;

‘(ii) high-use Federal recreational sites or Federal economic generators; and

‘(iii) the resource and asset management goals of the Secretary of the respective Federal land management agency.

‘(C) PERMISSIVE CONTENTS- Applications may include proposed programs the duration of which extend over a multiple-year period to support long-term transportation planning and resource management initiatives.

‘(c) National Federal Lands Transportation Facility Inventory-

‘(1) IN GENERAL- The Secretaries of the appropriate Federal land management agencies, in cooperation with the Secretary, shall maintain a comprehensive national inventory of public Federal lands transportation facilities.

‘(2) TRANSPORTATION FACILITIES INCLUDED IN THE INVENTORIES- To identify the Federal lands transportation system and determine the relative transportation needs among Federal land management agencies, the inventories shall include, at a minimum, facilities that--

‘(A) provide access to high-use Federal recreation sites or Federal economic generators, as determined by the Secretary in coordination with the respective Secretaries of the appropriate Federal land management agencies; and

‘(B) are owned by 1 of the following agencies:

‘(i) The National Park Service.

‘(ii) The Forest Service.

‘(iii) The United States Fish and Wildlife Service.

‘(iv) The Bureau of Land Management.

‘(v) The Corps of Engineers.

‘(3) AVAILABILITY- The inventories shall be made available to the Secretary.

‘(4) UPDATES- The Secretaries of the appropriate Federal land management agencies shall update the inventories of the appropriate Federal land management agencies, as determined by the Secretary after collaborative discussions with the Secretaries of the appropriate Federal land management agencies.

‘(5) REVIEW- A decision to add or remove a facility from the inventory shall not be considered a Federal action for purposes of review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(d) Bicycle Safety- The Secretary of the appropriate Federal land management agency shall prohibit the use of bicycles on each federally owned road that has a speed limit of 30 miles per hour or greater and an adjacent paved path for use by bicycles within 100 yards of the road unless the Secretary determines that the bicycle level of service on that roadway is rated B or higher.

‘Sec. 204. Federal lands access program

‘(a) Use of Funds-

‘(1) IN GENERAL- Funds made available under the Federal lands access program shall be used by the Secretary of Transportation and the Secretary of the appropriate Federal land management agency to pay the cost of--

‘(A) transportation planning, research, engineering, preventive maintenance, rehabilitation, restoration, construction, and reconstruction of Federal lands access transportation facilities located on or adjacent to, or that provide access to, Federal land, and--

‘(i) adjacent vehicular parking areas;

‘(ii) acquisition of necessary scenic easements and scenic or historic sites;

‘(iii) provisions for pedestrians and bicycles;

‘(iv) environmental mitigation in or adjacent to Federal land--

‘(I) to improve public safety and reduce vehicle-caused wildlife mortality while maintaining habitat connectivity; and

‘(II) to mitigate the damage to wildlife, aquatic organism passage, habitat, and ecosystem connectivity, including the costs of constructing, maintaining, replacing, or removing culverts and bridges, as appropriate;

‘(v) construction and reconstruction of roadside rest areas, including sanitary and water facilities; and

‘(vi) other appropriate public road facilities, as determined by the Secretary;

‘(B) operation and maintenance of transit facilities; and

‘(C) any transportation project eligible for assistance under this title that is within or adjacent to, or that provides access to, Federal land.

‘(2) CONTRACT- In connection with an activity described in paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency may enter into a contract or other appropriate agreement with respect to the activity with--

‘(A) a State (including a political subdivision of a State); or

‘(B) an Indian tribe.

‘(3) ADMINISTRATION- All appropriations for the construction and improvement of Federal lands access transportation facilities shall be administered in conformity with regulations and agreements approved by the Secretary.

‘(4) COOPERATION-

‘(A) IN GENERAL- The cooperation of States, counties, or other local subdivisions may be accepted in construction and improvement.

‘(B) FUNDS RECEIVED- Any funds received from a State, county, or local subdivision for a Federal lands access transportation facility project shall be credited to appropriations available under the Federal lands access program.

‘(5) COMPETITIVE BIDDING-

‘(A) IN GENERAL- Subject to subparagraph (B), construction of each project shall be performed by contract awarded by competitive bidding.

‘(B) EXCEPTION- Subparagraph (A) shall not apply if the Secretary or the Secretary of the appropriate Federal land management agency affirmatively finds that, under the circumstances relating to the project, a different method is in the public interest.

‘(b) Program Distributions-

‘(1) IN GENERAL- Funding made available to carry out the Federal lands access program shall be allocated among those States that have Federal land, in accordance with the following formula:

‘(A) 80 percent of the available funding for use in those States that contain at least 1 1/2 percent of the total public land in the United States managed by the agencies described in paragraph (2), to be distributed as follows:

‘(i) 30 percent in the ratio that--

‘(I) recreational visitation within each such State; bears to

‘(II) the recreational visitation within all such States.

‘(ii) 5 percent in the ratio that--

‘(I) the Federal land area within each such State; bears to

‘(II) the Federal land area in all such States.

‘(iii) 55 percent in the ratio that--

‘(I) the Federal public road miles within each such State; bears to

‘(II) the Federal public road miles in all such States.

‘(iv) 10 percent in the ratio that--

‘(I) the number of Federal public bridges within each such State; bears to

‘(II) the number of Federal public bridges in all such States.

‘(B) 20 percent of the available funding for use in those States that do not contain at least 1 1/2 percent of the total public land in the United States managed by the agencies described in paragraph (2), to be distributed as follows:

‘(i) 30 percent in the ratio that--

‘(I) recreational visitation within each such State; bears to

‘(II) the recreational visitation within all such States.

‘(ii) 5 percent in the ratio that--

‘(I) the Federal land area within each such State; bears to

‘(II) the Federal land area in all such States.

‘(iii) 55 percent in the ratio that--

‘(I) the Federal public road miles within each such State; bears to

‘(II) the Federal public road miles in all such States.

‘(iv) 10 percent in the ratio that--

‘(I) the number of Federal public bridges within each such State; bears to

‘(II) the number of Federal public bridges in all such States.

‘(2) DATA SOURCE- Data necessary to distribute funding under paragraph (1) shall be provided by the following Federal land management agencies:

‘(A) The National Park Service.

‘(B) The Forest Service.

‘(C) The United States Fish and Wildlife Service.

‘(D) The Bureau of Land Management.

‘(E) The Corps of Engineers.

‘(c) Programming Decisions Committee-

‘(1) IN GENERAL- Programming decisions shall be made within each State by a committee comprised of--

‘(A) a representative of the Federal Highway Administration;

‘(B) a representative of the State Department of Transportation; and

‘(C) a representative of any appropriate political subdivision of the State.

‘(2) CONSULTATION REQUIREMENT- The committee described in paragraph (1) shall consult with each applicable Federal agency in each State before any joint discussion or final programming decision.

‘(3) PROJECT PREFERENCE- In making a programming decision under paragraph (1), the committee shall give preference to projects that provide access to, are adjacent to, or are located within high-use Federal recreation sites or Federal economic generators, as identified by the Secretaries of the appropriate Federal land management agencies.’.

(b) Public Lands Development Roads and Trails- Section 214 of title 23, United States Code, is repealed.

(c) Conforming Amendments-

(1) CHAPTER 2 ANALYSIS- The analysis for chapter 2 of title 23, United States Code, is amended:

(A) By striking the items relating to sections 201 through 204 and inserting the following:

‘201. Federal lands and tribal transportation programs.

‘202. Tribal transportation program.

‘203. Federal lands transportation program.

‘204. Federal lands access program.’.

(B) By striking the item relating to section 214.

(2) DEFINITION- Section 138(a) of title 23, United States Code, is amended in the third sentence by striking ‘park road or parkway under section 204 of this title’ and inserting ‘Federal lands transportation facility’.

(3) RULES, REGULATIONS, AND RECOMMENDATIONS- Section 315 of title 23, United States Code, is amended by striking ‘204(f)’ and inserting ‘202(a)(5), 203(a)(3),’.

SEC. 1117. ALASKA HIGHWAY.

Section 218 of title 23, United States Code, is amended to read as follows:

‘Sec. 218. Alaska Highway

‘(a) Definition of Alaska Marine Highway System- In this section, the term ‘Alaska Marine Highway System’ includes each existing or planned transportation facility and equipment in the State of Alaska relating to the ferry system of the State, including the lease, purchase, or construction of vessels, terminals, docks, floats, ramps, staging areas, parking lots, bridges, and approaches thereto, and necessary roads.

‘(b) Authorization of Secretary-

‘(1) IN GENERAL- Recognizing the benefits that will accrue to the State of Alaska and to the United States from the reconstruction of the Alaska Highway from the Alaskan border to Haines Junction in Canada and the Haines Cutoff Highway from Haines Junction in Canada to Haines, the Secretary is authorized, upon agreement with the State of Alaska, to expend on such highway or the Alaska Marine Highway System any Federal-aid highway funds apportioned to the State of Alaska under this title to provide for necessary reconstruction of such highway.

‘(2) LIMITATION- No expenditures shall be made for the construction of the portion of the highways that are in located in Canada until the date on which an agreement has been reached by the Government of Canada and the Government of the United States, which shall provide in part, that the Canadian Government--

‘(A) will provide, without participation of funds authorized under this title, all necessary right-of-way for the construction of the highways;

‘(B) will not impose any highway toll, or permit any toll to be charged for the use of the highways by vehicles or persons;

‘(C) will not levy or assess, directly or indirectly, any fee, tax, or other charge for the use of the highways by vehicles or persons from the United States that does not apply equally to vehicles or persons of Canada;

‘(D) will continue to grant reciprocal recognition of vehicle registration and drivers’ licenses in accordance with agreements between the United States and Canada; and

‘(E) will maintain the highways after the date of completion of the highways in proper condition adequately to serve the needs of present and future traffic.

‘(c) Supervision of Secretary- The survey and construction work undertaken in Canada pursuant to this section shall be under the general supervision of the Secretary.’.

SEC. 1118. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

(a) Establishment of Program- The Secretary shall establish a program in accordance with this section to provide grants for projects of national and regional significance.

(b) Purpose of Program- The purpose of the projects of national and regional significance program shall be to fund critical high-cost surface transportation infrastructure projects that are difficult to complete with existing Federal, State, local, and private funds and that will--

(1) generate national and regional economic benefits and increase global economic competitiveness;

(2) reduce congestion and its impacts;

(3) improve roadways vital to national energy security;

(4) improve movement of freight and people; and

(5) improve transportation safety.

(c) Definitions- In this section:

(1) ELIGIBLE APPLICANT- The term ‘eligible applicant’ means a State department of transportation or a group of State departments of transportation, a local government, a tribal government or consortium of tribal governments, a transit agency, a port authority, a metropolitan planning organization, other political subdivisions of State or local governments, or a multi-State or multi-jurisdictional group of the aforementioned entities.

(2) ELIGIBLE PROJECT- The term ‘eligible project’ means a surface transportation project or a program of integrated surface transportation projects closely related in the function they perform that--

(A) is a capital project or projects--

(i) eligible for Federal financial assistance under title 23, United States Code, or under chapter 53 of title 49, United States Code; or

(ii) for surface transportation infrastructure to facilitate intermodal interchange, transfer, and access into and out of intermodal facilities, including ports; and

(B) has eligible project costs that are reasonably anticipated to equal or exceed the lesser of--

(i) $500,000,000;

(ii) for a project located in a single State, 30 percent of the amount of Federal-aid highway funds apportioned for the most recently completed fiscal year to the State; or

(iii) for a project located in more than 1 State, 75 percent of the amount of Federal-aid highway funds apportioned for the most recently completed fiscal year to the State in which the project is located that has the largest apportionment.

(3) ELIGIBLE PROJECT COSTS- The term ‘eligible project costs’ means the costs of--

(A) development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities;

(B) construction, reconstruction, rehabilitation, and acquisition of real property (including land related to the project and improvements to land), environmental mitigation, construction contingencies, acquisition of equipment directly related to improving system performance, and operational improvements; and

(C) all financing costs, including subsidy costs under the Transportation Infrastructure Finance and Innovation Act program.

(d) Solicitations and Applications-

(1) GRANT SOLICITATIONS- The Secretary shall establish criteria for project evaluation and conduct a transparent and competitive national solicitation process to select projects for funding to carry out the purposes of this section.

(2) APPLICATIONS-

(A) IN GENERAL- An eligible applicant seeking a grant under this section for an eligible project shall submit an application to the Secretary in such form and in accordance with such requirements as the Secretary shall establish.

(B) CONTENTS- An application under this subsection shall, at a minimum, include data on current system performance and estimated system improvements that will result from completion of the eligible project, including projections for 2, 7, and 15 years after completion.

(C) RESUBMISSION OF APPLICATIONS- An eligible applicant whose project is not selected by the Secretary may resubmit an application in any subsequent solicitation.

(e) Criteria for Project Evaluation and Selection-

(1) IN GENERAL- The Secretary may select a project only if the Secretary determines that the project--

(A) will significantly improve the performance of the national surface transportation network, nationally or regionally;

(B) is based on the results of preliminary engineering;

(C) cannot be readily and efficiently completed without Federal support from this program;

(D) is justified based on the ability of the project--

(i) to generate national economic benefits that reasonably exceed its costs, including increased access to jobs, labor, and other critical economic inputs;

(ii) to reduce long-term congestion, including impacts in the State, region, and Nation, and increase speed, reliability, and accessibility of the movement of people or freight; and

(iii) to improve transportation safety, including reducing transportation accidents, and serious injuries and fatalities; and

(E) is supported by an acceptable degree of non-Federal financial commitments, including evidence of stable and dependable financing sources to construct, maintain, and operate the infrastructure facility.

(2) ADDITIONAL CONSIDERATIONS- In evaluating a project under this section, in addition to the criteria in paragraph (1), the Secretary shall consider the extent to which the project--

(A) leverages Federal investment by encouraging non-Federal contributions to the project, including contributions from public-private partnerships;

(B) is able to begin construction within 18 months of being selected;

(C) incorporates innovative project delivery and financing where practical;

(D) stimulates collaboration between States and among State and local governments;

(E) helps maintain or protect the environment;

(F) improves roadways vital to national energy security;

(G) uses innovative technologies, including intelligent transportation systems, that enhance the efficiency of the project; and

(H) contributes to an equitable geographic distribution of funds under this section and an appropriate balance in addressing the needs of urban and rural communities.

(f) Grant Requirements-

(1) IN GENERAL- A grant for a project under this section shall be subject to the following requirements:

(A) A qualifying highway project eligible for funding under title 23, United States Code, or public transportation project eligible under chapter 53 of title 49, United States Code, shall comply with all applicable requirements of such title or chapter except that, if the project contains elements or activities that are not eligible for funding under such title or chapter but are eligible for funding under this section, the elements or activities shall comply with the requirements described in subparagraph (B).

(B) A qualifying surface transportation project not eligible under title 23, United States Code, or chapter 53 of title 49, United States Code, shall comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code, section 10a-d of title 41, United States Code, and such other terms, conditions, and requirements as the Secretary determines are necessary and appropriate for the type of project.

(2) DETERMINATION OF APPLICABLE MODAL REQUIREMENTS- In the event that a project has cross-modal components, the Secretary shall have the discretion to designate the requirements that shall apply to the project based on predominant components.

(3) OTHER TERMS AND CONDITIONS- The Secretary shall require that all grants under this section be subject to all terms, conditions, and requirements that the Secretary decides are necessary or appropriate for purposes of this section, including requirements for the disposition of net increases in value of real property resulting from the project assisted under this section.

(g) Federal Share of Project Cost-

(1) IN GENERAL- If a project funded under this section is to construct or improve a privately owned facility or would primarily benefit a private entity, the Federal share shall be the lesser of 50 percent of the total project cost or the quantified public benefit of the project. For all other projects funded under this section--

(A) the Federal share of funds under this section shall be up to 50 percent of the project cost; and

(B) the project sponsor may use other eligible Federal transportation funds to cover up to an additional 30 percent of the project costs.

(2) PRE-APPROVAL COSTS- The Secretary may allow costs incurred prior to project approval to be used as a credit toward the non-Federal share of the cost of the project. Such costs must be adequately documented, necessary, reasonable, and allocable to the current phase of the project and such costs may not be included as a cost or used to meet cost-sharing or matching requirements of any other federally-financed project.

(h) Report to the Secretary- For each project funded under this section, the project sponsor shall reassess system performance and report to the Secretary 2, 7, and 15 years after completion of the project to assess if the project outcomes have met pre-construction projections.

(i) Authorization of Appropriations- There is authorized to be appropriated to carry out this section, to remain available until expended, $1,000,000,000 for fiscal year 2013.

(j) Treatment of Projects- Notwithstanding any other provision of law, projects funded under this section shall be treated as projects on a Federal-aid highway under chapter 1 of title 23, United States Code.

(k) Reports-

(1) SECRETARY-

(A) IN GENERAL- Not later than 30 days after the date on which the Secretary selects a project for funding under this section, the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that describes the reasons for selecting the project, based on the criteria described in subsection (e).

(B) INCLUSIONS- The report submitted under subparagraph (A) shall specify each criteria described in subsection (e) that the project meets.

(C) AVAILABILITY- The Secretary shall make available on the website of the Department the report submitted under subparagraph (A).

(2) COMPTROLLER GENERAL-

(A) ASSESSMENT- The Comptroller General of the United States shall conduct an assessment of the establishment, solicitation, selection, and justification process with respect to the funding of projects under this section.

(B) REPORT- Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that describes--

(i) the process by which each project was selected;

(ii) the factors that went into the selection of each project; and

(iii) the justification for the selection of each project based on the criteria described in subsection (e).

(3) INSPECTOR GENERAL-

(A) ASSESSMENT- The Inspector General of the Department shall conduct an assessment of the establishment, solicitation, selection, and justification process with respect to the funding of projects under this section.

(B) INITIAL REPORT- Not later than 2 years after the date of enactment of this Act, the Inspector General of the Department shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that describes the initial results of the assessment conducted under subparagraph (A).

(C) FINAL REPORT- Not later than 4 years after the date of enactment of this Act, the Inspector General of the Department shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a final report that describes the findings of the Inspector General of the Department with respect to the assessment conducted under subparagraph (A).

(l) Regulations-

(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Secretary shall promulgate final regulations implementing the program authorized under this section.

(2) INTERIM PROVISIONS- Until the date on which the Secretary promulgates final regulations under paragraph (1), any amounts made available under subsection (i) to carry out this section shall be distributed in accordance with--

(A) the guidance and policies developed for the distribution of grants under the program using the notice of funding availability entitled ‘Notice of Funding Availability for the Department of Transportation’s National Infrastructure Investments Under the Full-Year Continuing Appropriations, 2012; and Request for Comments’ (77 Fed. Reg. 4863 (January 31, 2012)); or

(B) such guidance and policies as subsequently revised and updated.

SEC. 1119. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES.

(a) Construction of Ferry Boats and Ferry Terminal Facilities- Section 147 of title 23, United States Code, is amended--

(1) by striking subsections (c), (d), and (e);

(2) by redesignating subsection (f) as subsection (g); and

(3) by inserting after subsection (b) the following:

‘(c) Distribution of Funds- Of the amounts made available to ferry systems and public entities responsible for developing ferries under this section for a fiscal year, 100 percent shall be allocated in accordance with the formula set forth in subsection (d).

‘(d) Formula- Of the amounts allocated pursuant to subsection (c)--

‘(1) 20 percent shall be allocated among eligible entities in the proportion that--

‘(A) the number of ferry passengers carried by each ferry system in the most recent fiscal year; bears to

‘(B) the number of ferry passengers carried by all ferry systems in the most recent fiscal year;

‘(2) 50 percent shall be allocated among eligible entities in the proportion that--

‘(A) the number of vehicles carried by each ferry system in the most recent fiscal year; bears to

‘(B) the number of vehicles carried by all ferry systems in the most recent fiscal year; and

‘(3) 30 percent shall be allocated among eligible entities in the proportion that--

‘(A) the total route miles serviced by each ferry system; bears to

‘(B) the total route miles serviced by all ferry systems.

‘(e) Ferry Boat Coordination Team-

‘(1) ESTABLISHMENT- The Secretary shall establish within the Federal Highway Administration a Ferry Boat Coordination Team to carry out paragraph (2).

‘(2) PURPOSES- The purposes of the ferry boat coordination team shall be--

‘(A) to coordinate Federal programs affecting ferry and ferry facility construction, maintenance, operations, and security; and

‘(B) to promote transportation by ferry as a component of the United States transportation system.

‘(3) FUNCTIONS- The ferry boat coordination team shall--

‘(A) coordinate programs relating to ferry transportation carried out by--

‘(i) the Department of Transportation, including programs carried out by the Federal Highway Administration, the Federal Transit Administration, the Maritime Administration, and the Research and Innovative Technology Administration;

‘(ii) the Department of Homeland Security; and

‘(iii) other Federal and State agencies, as appropriate;

‘(B) ensure resource accountability for programs carried out by the Secretary relating to ferry transportation;

‘(C) provide strategic leadership for research, development, testing, and deployment of technologies relating to ferry transportation; and

‘(D) promote ferry transportation as a means to reduce costs associated with traffic congestion.

‘(f) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $67,000,000 for each of fiscal years 2012 and 2013.’.

(b) National Ferry Database- Section 1801(e) of the SAFETEA-LU (23 U.S.C. 129 note; Public Law 109-59) is amended--

(1) in paragraph (2), by inserting ‘, including any Federal, State, and local government funding sources,’ after ‘sources’; and

(2) in paragraph (4)--

(A) in subparagraph (B), by striking ‘and’ at the end;

(B) by redesignating subparagraph (C) as subparagraph (D);

(C) by inserting after subparagraph (B), the following:

‘(C) ensure that the database is consistent with the national transit database maintained by the Federal Transit Administration; and’; and

(D) in subparagraph (D) (as redesignated by subparagraph (B)), by striking ‘2009’ and inserting ‘2013’.

Subtitle B--Performance Management

SEC. 1201. METROPOLITAN TRANSPORTATION PLANNING.

Section 134 of title 23, United States Code, is amended to read as follows:

‘Sec. 134. Metropolitan transportation planning

‘(a) Policy- It is in the national interest--

‘(1) to encourage and promote the safe, cost-effective, and efficient management, operation, and development of surface transportation systems that will serve efficiently the mobility needs of individuals and freight, reduce transportation-related fatalities and serious injuries, and foster economic growth and development within and between States and urbanized areas, while fitting the needs and complexity of individual communities, maximizing value for taxpayers, leveraging cooperative investments, and minimizing transportation-related fuel consumption and air pollution through the metropolitan and statewide transportation planning processes identified in this title;

‘(2) to encourage the continued improvement, evolution, and coordination of the metropolitan and statewide transportation planning processes by and among metropolitan planning organizations, State departments of transportation, regional planning organizations, interstate partnerships, and public transportation and intercity service operators as guided by the planning factors identified in subsection (h) of this section and section 135(d);

‘(3) to encourage and promote transportation needs and decisions that are integrated with other planning needs and priorities; and

‘(4) to maximize the effectiveness of transportation investments.

‘(b) Definitions- In this section and section 135, the following definitions shall apply:

‘(1) EXISTING MPO- The term ‘existing MPO’ means a metropolitan planning organization that was designated as a metropolitan planning organization on the day before the date of enactment of the MAP-21.

‘(2) LOCAL OFFICIAL- The term ‘local official’ means any elected or appointed official of general purpose local government with responsibility for transportation in a designated area.

‘(3) MAINTENANCE AREA- The term ‘maintenance area’ means an area that was designated as an air quality nonattainment area, but was later redesignated by the Administrator of the Environmental Protection Agency as an air quality attainment area, under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)).

‘(4) METROPOLITAN PLANNING AREA- The term ‘metropolitan planning area’ means a geographical area determined by agreement between the metropolitan planning organization for the area and the applicable Governor under subsection (c).

‘(5) METROPOLITAN PLANNING ORGANIZATION- The term ‘metropolitan planning organization’ means the policy board of an organization established pursuant to subsection (c).

‘(6) METROPOLITAN TRANSPORTATION PLAN- The term ‘metropolitan transportation plan’ means a plan developed by a metropolitan planning organization under subsection (i).

‘(7) NONATTAINMENT AREA- The term ‘nonattainment area’ has the meaning given the term in section 171 of the Clean Air Act (42 U.S.C. 7501).

‘(8) NONMETROPOLITAN AREA-

‘(A) IN GENERAL- The term ‘nonmetropolitan area’ means a geographical area outside the boundaries of a designated metropolitan planning area.

‘(B) INCLUSIONS- The term ‘nonmetropolitan area’ includes--

‘(i) a small urbanized area with a population of more than 50,000, but fewer than 200,000, individuals, as calculated according to the most recent decennial census; and

‘(ii) a nonurbanized area.

‘(9) NONMETROPOLITAN PLANNING ORGANIZATION- The term ‘nonmetropolitan planning organization’ means an organization that--

‘(A) was designated as a metropolitan planning organization as of the day before the date of enactment of the MAP-21; and

‘(B) is not designated as a tier I MPO or tier II MPO.

‘(10) REGIONALLY SIGNIFICANT- The term ‘regionally significant’, with respect to a transportation project, program, service, or strategy, means a project, program, service, or strategy that--

‘(A) serves regional transportation needs (such as access to and from the area outside of the region, major activity centers in the region, and major planned developments); and

‘(B) would normally be included in the modeling of a transportation network of a metropolitan area.

‘(11) RURAL PLANNING ORGANIZATION- The term ‘rural planning organization’ means an organization that--

‘(A) is responsible for the planning, coordination, and implementation of statewide transportation plans and programs outside of a metropolitan area, with an emphasis on addressing the needs of rural areas of the State; and

‘(B) is not designated as a tier I or tier II metropolitan planning organization or a nonmetropolitan planning organization.

‘(12) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM- The term ‘statewide transportation improvement program’ means a statewide transportation improvement program developed by a State under section 135(g).

‘(13) STATEWIDE TRANSPORTATION PLAN- The term ‘statewide transportation plan’ means a plan developed by a State under section 135(f).

‘(14) TIER I MPO- The term ‘tier I MPO’ means a metropolitan planning organization designated as a tier I MPO under subsection (e)(4)(A).

‘(15) TIER II MPO- The term ‘tier II MPO’ means a metropolitan planning organization designated as a tier I MPO under subsection (e)(4)(B).

‘(16) TRANSPORTATION IMPROVEMENT PROGRAM- The term ‘transportation improvement program’ means a program developed by a metropolitan planning organization under subsection (j).

‘(17) URBANIZED AREA- The term ‘urbanized area’ means a geographical area with a population of 50,000 or more individuals, as calculated according to the most recent decennial census.

‘(c) Designation of Metropolitan Planning Organizations-

‘(1) IN GENERAL- To carry out the metropolitan transportation planning process under this section, a metropolitan planning organization shall be designated for each urbanized area with a population of 200,000 or more individuals, as calculated according to the most recent decennial census--

‘(A) by agreement between the applicable Governor and local officials that, in the aggregate, represent at least 75 percent of the affected population (including the largest incorporated city (based on population), as calculated according to the most recent decennial census); or

‘(B) in accordance with procedures established by applicable State or local law.

‘(2) SMALL URBANIZED AREAS- To carry out the metropolitan transportation planning process under this section, a metropolitan planning organization may be designated for any urbanized area with a population of 50,000 or more individuals, but fewer than 200,000 individuals, as calculated according to the most recent decennial census--

‘(A) by agreement between the applicable Governor and local officials that, in the aggregate, represent at least 75 percent of the affected population (including the largest incorporated city (based on population), as calculated according to the most recent decennial census); and

‘(B) with the consent of the Secretary, based on a finding that the resulting metropolitan planning organization has met the minimum requirements under subsection (e)(4)(B).

‘(3) STRUCTURE- Not later than 1 year after the date of enactment of the MAP-21, a metropolitan planning organization shall consist of--

‘(A) elected local officials in the relevant metropolitan area;

‘(B) officials of public agencies that administer or operate major modes of transportation in the relevant metropolitan area, including providers of public transportation; and

‘(C) appropriate State officials.

‘(4) EFFECT OF SUBSECTION- Nothing in this subsection interferes with any authority under any State law in effect on December 18, 1991, of a public agency with multimodal transportation responsibilities--

‘(A) to develop the metropolitan transportation plans and transportation improvement programs for adoption by a metropolitan planning organization; or

‘(B) to develop capital plans, coordinate public transportation services and projects, or carry out other activities pursuant to State law.

‘(5) CONTINUING DESIGNATION-

‘(A) POPULATION OF 200,000 OR MORE- A designation of an existing MPO for an urbanized area with a population of 200,000 or more individuals, as calculated according to the most recent decennial census, shall remain in effect--

‘(i) for the period during which the structure of the existing MPO complies with the requirements of paragraph (1); or

‘(ii) until the date on which the existing MPO is redesignated under paragraph (6); and

‘(B) POPULATION OF FEWER THAN 200,000-

‘(i) IN GENERAL- A designation of an existing MPO for an urbanized area with a population of fewer than 200,000 individuals, as calculated according to the most recent decennial census, shall remain in effect until the date on which the existing MPO is redesignated under paragraph (6) unless--

‘(I) the existing MPO requests that its planning responsibilities be transferred to the State or to another planning organization designated by the State; or

‘(II) the Secretary determines 3 years after the date on which the Secretary issues a rule pursuant to subsection (e)(4)(B)(i), that the existing MPO is not meeting the minimum requirements established by the rule.

‘(ii) JUSTIFICATION- The Secretary shall, in a timely manner, provide a substantive written justification to each metropolitan planning organization that is the subject of a negative determination of the Secretary under clause (i)(II).

‘(C) EXTENSION- If a metropolitan planning organization for an urbanized area with a population of less than 200,000 that would otherwise be terminated under subparagraph (B), requests a probationary continuation before the termination of the metropolitan planning organization, the Secretary shall--

‘(i) delay the termination of the metropolitan planning organization under subparagraph (B) for a period of 1 year;

‘(ii) provide additional technical assistance to all metropolitan planning organizations provided an extension under this paragraph to assist the metropolitan planning organization in meeting the minimum requirements under subsection (e)(4)(B)(i); and

‘(iii) make a determination not later than 1 year after the date on which the Secretary issues an extension, regardless of whether the metropolitan planning organization has met the minimum requirements established under subsection (e)(4)(B)(ii).

‘(D) DESIGNATION AS TIER II MPO- If the Secretary determines that the existing MPO has met the minimum requirements under the rule issued under subsection (e)(4)(B)(i), the Secretary shall designate the existing MPO as a tier II MPO.

‘(6) REDESIGNATION-

‘(A) IN GENERAL- The designation of a metropolitan planning organization under this subsection shall remain in effect until the date on which the metropolitan planning organization is redesignated, as appropriate, in accordance with the requirements of this subsection pursuant to an agreement between--

‘(i) the applicable Governor; and

‘(ii) affected local officials who, in the aggregate, represent at least 75 percent of the existing metropolitan planning area population (including the largest incorporated city (based on population), as calculated according to the most recent decennial census).

‘(B) RESTRUCTURING- A metropolitan planning organization may be restructured to meet the requirements of paragraph (3) without undertaking a redesignation.

‘(7) ABSENCE OF DESIGNATION-

‘(A) IN GENERAL- A metropolitan planning organization that is the subject of a negative determination of the Secretary under paragraph (5)(B)(ii) shall submit to the State in which the metropolitan planning organization is located, or to a planning organization designated by the State, by not later than 180 days after the date on which a notice of the negative determination is received, a 6-month plan that includes a description of a method--

‘(i) to transfer the responsibilities of the metropolitan planning organization to the State; and

‘(ii) to dissolve the metropolitan planning organization.

‘(B) ACTION ON DISSOLUTION- On submission of a plan under subparagraph (A), the metropolitan planning area served by the applicable metropolitan planning organization shall--

‘(i) continue to receive metropolitan transportation planning funds until the earlier of--

‘(I) the date of dissolution of the metropolitan planning organization; and

‘(II) the date that is 4 years after the date of enactment of the MAP-21; and

‘(ii) be treated by the State as a nonmetropolitan area for purposes of this title.

‘(8) DESIGNATION OF MULTIPLE MPOS-

‘(A) IN GENERAL- More than 1 metropolitan planning organization may be designated within an existing metropolitan planning area only if the applicable Governor and an existing MPO determine that the size and complexity of the existing metropolitan planning area make the designation of more than 1 metropolitan planning organization for the metropolitan planning area appropriate.

‘(B) SERVICE JURISDICTIONS- If more than 1 metropolitan planning organization is designated for an existing metropolitan planning area under subparagraph (A), the existing metropolitan planning area shall be split into multiple metropolitan planning areas, each of which shall be served by the existing MPO or a new metropolitan planning organization.

‘(C) TIER DESIGNATION- The tier designation of each metropolitan planning organization subject to a designation under this paragraph shall be determined based on the size of each respective metropolitan planning area, in accordance with subsection (e)(4).

‘(d) Metropolitan Planning Area Boundaries-

‘(1) IN GENERAL- For purposes of this section, the boundaries of a metropolitan planning area shall be determined by agreement between the applicable metropolitan planning organization and the Governor of the State in which the metropolitan planning area is located.

‘(2) INCLUDED AREA- Each metropolitan planning area--

‘(A) shall encompass at least the relevant existing urbanized area and any contiguous area expected to become urbanized within a 20-year forecast period under the applicable metropolitan transportation plan; and

‘(B) may encompass the entire relevant metropolitan statistical area, as defined by the Office of Management and Budget.

‘(3) IDENTIFICATION OF NEW URBANIZED AREAS- The designation by the Bureau of the Census of a new urbanized area within the boundaries of an existing metropolitan planning area shall not require the redesignation of the relevant existing MPO.

‘(4) NONATTAINMENT AND MAINTENANCE AREAS-

‘(A) EXISTING METROPOLITAN PLANNING AREAS-

‘(i) IN GENERAL- Except as provided in clause (ii), notwithstanding paragraph (2), in the case of an urbanized area designated as a nonattainment area or maintenance area as of the date of enactment of the MAP-21, the boundaries of the existing metropolitan planning area as of that date of enactment shall remain in force and effect.

‘(ii) EXCEPTION- Notwithstanding clause (i), the boundaries of an existing metropolitan planning area described in that clause may be adjusted by agreement of the applicable Governor and the affected metropolitan planning organizations in accordance with paragraph (1).

‘(B) NEW METROPOLITAN PLANNING AREAS- In the case of an urbanized area designated as a nonattainment area or maintenance area after the date of enactment of the MAP-21, the boundaries of the applicable metropolitan planning area--

‘(i) shall be established in accordance with subsection (c)(1);

‘(ii) shall encompass the areas described in paragraph (2)(A);

‘(iii) may encompass the areas described in paragraph (2)(B); and

‘(iv) may address any appropriate nonattainment area or maintenance area.

‘(e) Requirements-

‘(1) DEVELOPMENT OF PLANS AND TIPS- To accomplish the policy objectives described in subsection (a), each metropolitan planning organization, in cooperation with the applicable State and public transportation operators, shall develop metropolitan transportation plans and transportation improvement programs for metropolitan planning areas of the State through a performance-driven, outcome-based approach to metropolitan transportation planning consistent with subsection (h).

‘(2) CONTENTS- The metropolitan transportation plans and transportation improvement programs for each metropolitan area shall provide for the development and integrated management and operation of transportation systems and facilities (including accessible pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation) that will function as--

‘(A) an intermodal transportation system for the metropolitan planning area; and

‘(B) an integral part of an intermodal transportation system for the applicable State and the United States.

‘(3) PROCESS OF DEVELOPMENT- The process for developing metropolitan transportation plans and transportation improvement programs shall--

‘(A) provide for consideration of all modes of transportation; and

‘(B) be continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation needs to be addressed.

‘(4) TIERING-

‘(A) TIER I MPOS-

‘(i) IN GENERAL- A metropolitan planning organization shall be designated as a tier I MPO if--

‘(I) as certified by the Governor of each applicable State, the metropolitan planning organization operates within, and primarily serves, a metropolitan planning area with a population of 1,000,000 or more individuals, as calculated according to the most recent decennial census; and

‘(II) the Secretary determines the metropolitan planning organization--

‘(aa) meets the minimum technical requirements under clause (iv); and

‘(bb) not later than 2 years after the date of enactment of the MAP-21, will fully implement the processes described in subsections (h) though (j).

‘(ii) ABSENCE OF DESIGNATION- In the absence of designation as a tier I MPO under clause (i), a metropolitan planning organization shall operate as a tier II MPO until the date on which the Secretary determines the metropolitan planning organization can meet the minimum technical requirements under clause (iv).

‘(iii) REDESIGNATION AS TIER I- A metropolitan planning organization operating within a metropolitan planning area with a population of 200,000 or more and fewer than 1,000,000 individuals and primarily within urbanized areas with populations of 200,000 or more individuals, as calculated according to the most recent decennial census, that is designated as a tier II MPO under subparagraph (B) may request, with the support of the applicable Governor, a redesignation as a tier I MPO on a determination by the Secretary that the metropolitan planning organization has met the minimum technical requirements under clause (iv).

‘(iv) MINIMUM TECHNICAL REQUIREMENTS- Not later than 1 year after the date of enactment of the MAP-21, the Secretary shall issue a rule that establishes the minimum technical requirements necessary for a metropolitan planning organization to be designated as a tier I MPO, including, at a minimum, modeling, data, staffing, and other technical requirements.

‘(B) TIER II MPOS-

‘(i) IN GENERAL- Not later than 1 year after the date of enactment of the MAP-21, the Secretary shall issue a rule that establishes minimum requirements necessary for a metropolitan planning organization to be designated as a tier II MPO.

‘(ii) REQUIREMENTS- The minimum requirements established under clause (i) shall--

‘(I) be limited to ensuring that each metropolitan planning organization has the capabilities necessary to develop the metropolitan transportation plan and transportation improvement program under this section; and

‘(II) include--

‘(aa) only the staffing capabilities necessary to operate the metropolitan planning organization; and

‘(bb) a requirement that the metropolitan planning organization has the technical capacity to conduct the travel demand model and forecasting necessary, as appropriate based on the size and resources of the metropolitan planning organization, to fulfill the requirements of this section, except that in cases in which a metropolitan planning organization has a formal agreement with a State to conduct the modeling on behalf of the metropolitan planning organization, the metropolitan planning organization shall be exempt from the technical capacity requirement.

‘(iii) LIMITATION- The rule issued pursuant to this subparagraph shall only include the minimum requirements established under clause (ii).

‘(iv) INCLUSION- A metropolitan planning organization operating primarily within an urbanized area with a population of 200,000 or more individuals, as calculated according to the most recent decennial census, and that does not qualify as a tier I MPO under subparagraph (A)(i), shall--

‘(I) be designated as a tier II MPO; and

‘(II) follow the processes under subsection (k).

‘(C) CONSOLIDATION-

‘(i) IN GENERAL- Metropolitan planning organizations operating within contiguous, adjacent, or geographically linked urbanized areas may elect to consolidate in order to meet the population thresholds required to achieve designation as a tier I or tier II MPO under this paragraph.

‘(ii) EFFECT OF SUBSECTION- Nothing in this subsection requires or prevents consolidation among multiple metropolitan planning organizations located within a single urbanized area.

‘(f) Coordination in Multistate Areas-

‘(1) IN GENERAL- The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire metropolitan area.

‘(2) COORDINATION ALONG DESIGNATED TRANSPORTATION CORRIDORS- The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire designated transportation corridor.

‘(3) COORDINATION WITH INTERSTATE COMPACTS- The Secretary shall encourage metropolitan planning organizations to take into consideration, during the development of metropolitan transportation plans and transportation improvement programs, any relevant transportation studies concerning planning for regional transportation (including high-speed and intercity rail corridor studies, commuter rail corridor studies, intermodal terminals, and interstate highways) in support of freight, intercity, or multistate area projects and services that have been developed pursuant to interstate compacts or agreements, or by organizations established under section 135.

‘(g) Engagement in Metropolitan Transportation Plan and TIP Development-

‘(1) NONATTAINMENT AND MAINTENANCE AREAS- If more than 1 metropolitan planning organization has authority within a metropolitan area, nonattainment area, or maintenance area, each metropolitan planning organization shall consult with all other metropolitan planning organizations designated for the metropolitan area, nonattainment area, or maintenance area and the State in the development of metropolitan transportation plans and transportation improvement programs under this section.

‘(2) TRANSPORTATION IMPROVEMENTS LOCATED IN MULTIPLE METROPOLITAN PLANNING AREAS- If a transportation improvement project funded under this title or chapter 53 of title 49 is located within the boundaries of more than 1 metropolitan planning area, the affected metropolitan planning organizations shall coordinate metropolitan transportation plans and transportation improvement programs regarding the project.

‘(3) COORDINATION OF ADJACENT PLANNING ORGANIZATIONS-

‘(A) IN GENERAL- A metropolitan planning organization that is adjacent or located in reasonably close proximity to another metropolitan planning organization shall coordinate with that metropolitan planning organization with respect to planning processes, including preparation of metropolitan transportation plans and transportation improvement programs, to the maximum extent practicable.

‘(B) NONMETROPOLITAN PLANNING ORGANIZATIONS- A metropolitan planning organization that is adjacent or located in reasonably close proximity to a nonmetropolitan planning organization shall consult with that nonmetropolitan planning organization with respect to planning processes, to the maximum extent practicable.

‘(4) RELATIONSHIP WITH OTHER PLANNING OFFICIALS-

‘(A) IN GENERAL- The Secretary shall encourage each metropolitan planning organization to cooperate with Federal, tribal, State, and local officers and entities responsible for other types of planning activities that are affected by transportation in the relevant area (including planned growth, economic development, infrastructure services, housing, other public services, nonmotorized users, environmental protection, airport operations, high-speed and intercity passenger rail, freight rail, port access, and freight movements), to the maximum extent practicable, to ensure that the metropolitan transportation planning process, metropolitan transportation plans, and transportation improvement programs are developed in cooperation with other related planning activities in the area.

‘(B) INCLUSION- Cooperation under subparagraph (A) shall include the design and delivery of transportation services within the metropolitan area that are provided by--

‘(i) recipients of assistance under sections 202, 203, and 204;

‘(ii) recipients of assistance under chapter 53 of title 49;

‘(iii) government agencies and nonprofit organizations (including representatives of the agencies and organizations) that receive Federal assistance from a source other than the Department of Transportation to provide nonemergency transportation services; and

‘(iv) sponsors of regionally significant programs, projects, and services that are related to transportation and receive assistance from any public or private source.

‘(5) COORDINATION OF OTHER FEDERALLY REQUIRED PLANNING PROGRAMS- The Secretary shall encourage each metropolitan planning organization to coordinate, to the maximum extent practicable, the development of metropolitan transportation plans and transportation improvement programs with other relevant federally required planning programs.

‘(h) Scope of Planning Process-

‘(1) IN GENERAL- The metropolitan transportation planning process for a metropolitan planning area under this section shall provide for consideration of projects and strategies that will--

‘(A) support the economic vitality of the metropolitan area, especially by enabling global competitiveness, travel and tourism (where applicable), productivity, and efficiency;

‘(B) increase the safety of the transportation system for motorized and nonmotorized users;

‘(C) increase the security of the transportation system for motorized and nonmotorized users;

‘(D) increase the accessibility and mobility of individuals and freight;

‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote consistency between transportation improvements and State and local planned growth and economic development patterns;

‘(F) enhance the integration and connectivity of the transportation system, across and between modes, for individuals and freight;

‘(G) increase efficient system management and operation; and

‘(H) emphasize the preservation of the existing transportation system.

‘(2) PERFORMANCE-BASED APPROACH-

‘(A) IN GENERAL- The metropolitan transportation planning process shall provide for the establishment and use of a performance-based approach to transportation decisionmaking to support the national goals described in section 150(b) of this title and in section 5301(c) of title 49.

‘(B) PERFORMANCE TARGETS-

‘(i) SURFACE TRANSPORTATION PERFORMANCE TARGETS-

‘(I) IN GENERAL- Each metropolitan planning organization shall establish performance targets that address the performance measures described in sections 119(f), 148(h), 149(k), where applicable, and 167(i) to use in tracking attainment of critical outcomes for the region of the metropolitan planning organization.

‘(II) COORDINATION- Selection of performance targets by a metropolitan planning organization shall be coordinated with the relevant State to ensure consistency, to the maximum extent practicable.

‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TARGETS- Each metropolitan planning organization shall adopt the performance targets identified by providers of public transportation pursuant to sections 5326(c) and 5329(d) of title 49, for use in tracking attainment of critical outcomes for the region of the metropolitan planning organization.

‘(C) TIMING- Each metropolitan planning organization shall establish the performance targets under subparagraph (B) not later than 90 days after the date on which the relevant State or provider of public transportation establishes the performance targets.

‘(D) INTEGRATION OF OTHER PERFORMANCE-BASED PLANS- A metropolitan planning organization shall integrate in the metropolitan transportation planning process, directly or by reference, the goals, objectives, performance measures, and targets described in other State plans and processes, as well as asset management and safety plans developed by providers of public transportation, required as part of a performance-based program, including plans such as--

‘(i) the State National Highway System asset management plan;

‘(ii) asset management plans developed by providers of public transportation;

‘(iii) the State strategic highway safety plan;

‘(iv) safety plans developed by providers of public transportation;

‘(v) the congestion mitigation and air quality performance plan, where applicable;

‘(vi) the national freight strategic plan; and

‘(vii) the statewide transportation plan.

‘(E) USE OF PERFORMANCE MEASURES AND TARGETS- The performance measures and targets established under this paragraph shall be used, at a minimum, by the relevant metropolitan planning organization as the basis for development of policies, programs, and investment priorities reflected in the metropolitan transportation plan and transportation improvement program.

‘(3) FAILURE TO CONSIDER FACTORS- The failure to take into consideration 1 or more of the factors specified in paragraphs (1) and (2) shall not be subject to review by any court under this title, chapter 53 of title 49, subchapter II of chapter 5 of title 5, or chapter 7 of title 5 in any matter affecting a metropolitan transportation plan, a transportation improvement program, a project or strategy, or the certification of a planning process.

‘(4) PARTICIPATION BY INTERESTED PARTIES-

‘(A) IN GENERAL- Each metropolitan planning organization shall provide to affected individuals, public agencies, and other interested parties (including State representatives of nonmotorized users) notice and a reasonable opportunity to comment on the metropolitan transportation plan and transportation improvement program and any relevant scenarios.

‘(B) CONTENTS OF PARTICIPATION PLAN- Each metropolitan planning organization shall establish a participation plan that--

‘(i) is developed in consultation with interested parties and local officials; and

‘(ii) provides that interested parties and local officials shall have reasonable opportunities to comment on the contents of the metropolitan transportation plan of the metropolitan planning organization.

‘(C) METHODS- In carrying out subparagraph (A), the metropolitan planning organization shall, to the maximum extent practicable--

‘(i) develop the metropolitan transportation plan and transportation improvement program in consultation with interested parties, as appropriate, including by the formation of advisory groups representative of the community and interested parties (including State representatives of nonmotorized users) that participate in the development of the metropolitan transportation plan and transportation improvement program;

‘(ii) hold any public meetings at times and locations that are, as applicable--

‘(I) convenient; and

‘(II) in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);

‘(iii) employ visualization techniques to describe metropolitan transportation plans and transportation improvement programs; and

‘(iv) make public information available in appropriate electronically accessible formats and means, such as the Internet, to afford reasonable opportunity for consideration of public information under subparagraph (A).

‘(i) Development of Metropolitan Transportation Plan-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- Except as provided in subparagraph (B), not later than 5 years after the date of enactment of the MAP-21, and not less frequently than once every 5 years thereafter, each metropolitan planning organization shall prepare and update, respectively, a metropolitan transportation plan for the relevant metropolitan planning area in accordance with this section.

‘(B) EXCEPTIONS- A metropolitan planning organization shall prepare or update, as appropriate, the metropolitan transportation plan not less frequently than once every 4 years if the metropolitan planning organization is operating within--

‘(i) a nonattainment area; or

‘(ii) a maintenance area.

‘(2) OTHER REQUIREMENTS- A metropolitan transportation plan under this section shall--

‘(A) be in a form that the Secretary determines to be appropriate;

‘(B) have a term of not less than 20 years; and

‘(C) contain, at a minimum--

‘(i) an identification of the existing transportation infrastructure, including highways, local streets and roads, bicycle and pedestrian facilities, public transportation facilities and services, commuter rail facilities and services, high-speed and intercity passenger rail facilities and services, freight facilities (including freight railroad and port facilities), multimodal and intermodal facilities, and intermodal connectors that, evaluated in the aggregate, function as an integrated metropolitan transportation system;

‘(ii) a description of the performance measures and performance targets used in assessing the existing and future performance of the transportation system in accordance with subsection (h)(2);

‘(iii) a description of the current and projected future usage of the transportation system, including a projection based on a preferred scenario, and further including, to the extent practicable, an identification of existing or planned transportation rights-of-way, corridors, facilities, and related real properties;

‘(iv) a system performance report evaluating the existing and future condition and performance of the transportation system with respect to the performance targets described in subsection (h)(2) and updates in subsequent system performance reports, including--

‘(I) progress achieved by the metropolitan planning organization in meeting the performance targets in comparison with system performance recorded in previous reports;

‘(II) an accounting of the performance of the metropolitan planning organization on outlay of obligated project funds and delivery of projects that have reached substantial completion in relation to--

‘(aa) the projects included in the transportation improvement program; and

‘(bb) the projects that have been removed from the previous transportation improvement program; and

‘(III) when appropriate, an analysis of how the preferred scenario has improved the conditions and performance of the transportation system and how changes in local policies, investments, and growth have impacted the costs necessary to achieve the identified performance targets;

‘(v) recommended strategies and investments for improving system performance over the planning horizon, including transportation systems management and operations strategies, maintenance strategies, demand management strategies, asset management strategies, capacity and enhancement investments, State and local economic development and land use improvements, intelligent transportation systems deployment, and technology adoption strategies, as determined by the projected support of the performance targets described in subsection (h)(2);

‘(vi) recommended strategies and investments to improve and integrate disability-related access to transportation infrastructure, including strategies and investments based on a preferred scenario, when appropriate;

‘(vii) investment priorities for using projected available and proposed revenues over the short- and long-term stages of the planning horizon, in accordance with the financial plan required under paragraph (4);

‘(viii) a description of interstate compacts entered into in order to promote coordinated transportation planning in multistate areas, if applicable;

‘(ix) an optional illustrative list of projects containing investments that--

‘(I) are not included in the metropolitan transportation plan; but

‘(II) would be so included if resources in addition to the resources identified in the financial plan under paragraph (4) were available;

‘(x) a discussion (developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies) of types of potential environmental and stormwater mitigation activities and potential areas to carry out those activities, including activities that may have the greatest potential to restore and maintain the environmental functions affected by the metropolitan transportation plan; and

‘(xi) recommended strategies and investments, including those developed by the State as part of interstate compacts, agreements, or organizations, that support intercity transportation.

‘(3) SCENARIO DEVELOPMENT-

‘(A) IN GENERAL- When preparing the metropolitan transportation plan, the metropolitan planning organization may, while fitting the needs and complexity of its community, develop multiple scenarios for consideration as a part of the development of the metropolitan transportation plan, in accordance with subparagraph (B).

‘(B) COMPONENTS OF SCENARIOS- The scenarios--

‘(i) shall include potential regional investment strategies for the planning horizon;

‘(ii) shall include assumed distribution of population and employment;

‘(iii) may include a scenario that, to the maximum extent practicable, maintains baseline conditions for the performance measures identified in subsection (h)(2);

‘(iv) may include a scenario that improves the baseline conditions for as many of the performance measures identified in subsection (h)(2) as possible;

‘(v) shall be revenue constrained based on the total revenues expected to be available over the forecast period of the plan; and

‘(vi) may include estimated costs and potential revenues available to support each scenario.

‘(C) METRICS- In addition to the performance measures identified in subsection (h)(2), scenarios developed under this paragraph may be evaluated using locally-developed metrics for the following categories:

‘(i) Congestion and mobility, including transportation use by mode.

‘(ii) Freight movement.

‘(iii) Safety.

‘(iv) Efficiency and costs to taxpayers.

‘(4) FINANCIAL PLAN- A financial plan referred to in paragraph (2)(C)(vii) shall--

‘(A) be prepared by each metropolitan planning organization to support the metropolitan transportation plan; and

‘(B) contain a description of each of the following:

‘(i) Projected resource requirements for implementing projects, strategies, and services recommended in the metropolitan transportation plan, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the metropolitan planning organization, any public transportation agency, and the State, that are reasonably expected to be available to support the investment priorities recommended in the metropolitan transportation plan.

‘(iv) Each applicable project only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(5) COORDINATION WITH CLEAN AIR ACT AGENCIES- The metropolitan planning organization for any metropolitan area that is a nonattainment area or maintenance area shall coordinate the development of a transportation plan with the process for development of the transportation control measures of the State implementation plan required by the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(6) PUBLICATION- On approval by the relevant metropolitan planning organization, a metropolitan transportation plan involving Federal participation shall be, at such times and in such manner as the Secretary shall require--

‘(A) published or otherwise made readily available by the metropolitan planning organization for public review, including (to the maximum extent practicable) in electronically accessible formats and means, such as the Internet; and

‘(B) submitted for informational purposes to the applicable Governor.

‘(7) CONSULTATION-

‘(A) IN GENERAL- In each metropolitan area, the metropolitan planning organization shall consult, as appropriate, with Federal, tribal, State, and local agencies responsible for land use management, natural resources, environmental protection, conservation, and historic preservation concerning the development of a metropolitan transportation plan.

‘(B) ISSUES- The consultation under subparagraph (A) shall involve, as available, consideration of--

‘(i) metropolitan transportation plans with Federal, tribal, State, and local conservation plans or maps; and

‘(ii) inventories of natural or historic resources.

‘(8) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST- Notwithstanding paragraph (4), a State or metropolitan planning organization shall not be required to select any project from the illustrative list of additional projects included in the metropolitan transportation plan under paragraph (2)(C)(ix).

‘(j) Transportation Improvement Program-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- In cooperation with the applicable State and any affected public transportation operator, the metropolitan planning organization designated for a metropolitan area shall develop a transportation improvement program for the metropolitan planning area that--

‘(i) contains projects consistent with the current metropolitan transportation plan;

‘(ii) reflects the investment priorities established in the current metropolitan transportation plan; and

‘(iii) once implemented, will make significant progress toward achieving the performance targets established under subsection (h)(2).

‘(B) OPPORTUNITY FOR PARTICIPATION- In developing the transportation improvement program, the metropolitan planning organization, in cooperation with the State and any affected public transportation operator, shall provide an opportunity for participation by interested parties, in accordance with subsection (h)(4).

‘(C) UPDATING AND APPROVAL- The transportation improvement program shall be--

‘(i) updated not less frequently than once every 4 years, on a cycle compatible with the development of the relevant statewide transportation improvement program under section 135; and

‘(ii) approved by the applicable Governor.

‘(2) CONTENTS-

‘(A) PRIORITY LIST- The transportation improvement program shall include a priority list of proposed federally supported projects and strategies to be carried out during the 4-year period beginning on the date of adoption of the transportation improvement program, and each 4-year period thereafter, using existing and reasonably available revenues in accordance with the financial plan under paragraph (3).

‘(B) DESCRIPTIONS- Each project described in the transportation improvement program shall include sufficient descriptive material (such as type of work, termini, length, and other similar factors) to identify the project or phase of the project and the effect that the project or project phase will have in addressing the targets described in subsection (h)(2).

‘(C) PERFORMANCE TARGET ACHIEVEMENT- The transportation improvement program shall include, to the maximum extent practicable, a description of the anticipated effect of the transportation improvement program on attainment of the performance targets established in the metropolitan transportation plan, linking investment priorities to those performance targets.

‘(D) ILLUSTRATIVE LIST OF PROJECTS- In developing a transportation improvement program, an optional illustrative list of projects may be prepared containing additional investment priorities that--

‘(i) are not included in the transportation improvement program; but

‘(ii) would be so included if resources in addition to the resources identified in the financial plan under paragraph (3) were available.

‘(3) FINANCIAL PLAN- A financial plan referred to in paragraph (2)(D)(ii) shall--

‘(A) be prepared by each metropolitan planning organization to support the transportation improvement program; and

‘(B) contain a description of each of the following:

‘(i) Projected resource requirements for implementing projects, strategies, and services recommended in the transportation improvement program, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the metropolitan planning organization, any public transportation agency, and the State, that are reasonably expected to be available to support the investment priorities recommended in the transportation improvement program.

‘(iv) Each applicable project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(4) INCLUDED PROJECTS-

‘(A) PROJECTS UNDER THIS TITLE AND CHAPTER 53 OF TITLE 49- A transportation improvement program developed under this subsection for a metropolitan area shall include a description of the projects within the area that are proposed for funding under chapter 1 of this title and chapter 53 of title 49.

‘(B) PROJECTS UNDER CHAPTER 2-

‘(i) REGIONALLY SIGNIFICANT- Each regionally significant project proposed for funding under chapter 2 shall be identified individually in the transportation improvement program.

‘(ii) NONREGIONALLY SIGNIFICANT- A description of each project proposed for funding under chapter 2 that is not determined to be regionally significant shall be contained in 1 line item or identified individually in the transportation improvement program.

‘(5) OPPORTUNITY FOR PARTICIPATION- Before approving a transportation improvement program, a metropolitan planning organization, in cooperation with the State and any affected public transportation operator, shall provide an opportunity for participation by interested parties in the development of the transportation improvement program, in accordance with subsection (h)(4).

‘(6) SELECTION OF PROJECTS-

‘(A) IN GENERAL- Each tier I MPO and tier II MPO shall select projects carried out within the boundaries of the applicable metropolitan planning area from the transportation improvement program, in consultation with the relevant State and on concurrence of the affected facility owner, for funds apportioned to the State under section 104(b)(2) and suballocated to the metropolitan planning area under section 133(d).

‘(B) PROJECTS UNDER CHAPTER 53 OF TITLE 49- In the case of projects under chapter 53 of title 49, the selection of federally funded projects in metropolitan areas shall be carried out, from the approved transportation improvement program, by the designated recipients of public transportation funding in cooperation with the metropolitan planning organization.

‘(C) CMAQ PROJECTS- Each tier I MPO shall select projects carried out within the boundaries of the applicable metropolitan planning area from the transportation improvement program, in consultation with the relevant State and on concurrence of the affected facility owner, for funds apportioned to the State under section 104(b)(4) and suballocated to the metropolitan planning area under section 149(j).

‘(D) MODIFICATIONS TO PROJECT PRIORITY- Notwithstanding any other provision of law, approval by the Secretary shall not be required to carry out a project included in a transportation improvement program in place of another project in the transportation improvement program.

‘(7) PUBLICATION-

‘(A) IN GENERAL- A transportation improvement program shall be published or otherwise made readily available by the applicable metropolitan planning organization for public review in electronically accessible formats and means, such as the Internet.

‘(B) ANNUAL LIST OF PROJECTS- An annual list of projects, including investments in pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation, for which Federal funds have been obligated during the preceding fiscal year shall be published or otherwise made available by the cooperative effort of the State, public transportation operator, and metropolitan planning organization in electronically accessible formats and means, such as the Internet, in a manner that is consistent with the categories identified in the relevant transportation improvement program.

‘(k) Planning Requirements for Tier II MPOs-

‘(1) IN GENERAL- The Secretary may provide for the performance-based development of a metropolitan transportation plan and transportation improvement program for the metropolitan planning area of a tier II MPO, as the Secretary determines to be appropriate, taking into account--

‘(A) the complexity of transportation needs in the area; and

‘(B) the technical capacity of the metropolitan planning organization.

‘(2) EVALUATION OF PERFORMANCE-BASED PLANNING- In reviewing a tier II MPO under subsection (m), the Secretary shall take into consideration the effectiveness of the tier II MPO in implementing and maintaining a performance-based planning process that--

‘(A) addresses the performance targets described in subsection (h)(2); and

‘(B) demonstrates progress on the achievement of those performance targets.

‘(l) Certification-

‘(1) IN GENERAL- The Secretary shall--

‘(A) ensure that the metropolitan transportation planning process of a metropolitan planning organization is being carried out in accordance with applicable Federal law; and

‘(B) subject to paragraph (2), certify, not less frequently than once every 4 years, that the requirements of subparagraph (A) are met with respect to the metropolitan transportation planning process.

‘(2) REQUIREMENTS FOR CERTIFICATION- The Secretary may make a certification under paragraph (1)(B) if--

‘(A) the metropolitan transportation planning process complies with the requirements of this section and other applicable Federal law;

‘(B) representation on the metropolitan planning organization board includes officials of public agencies that administer or operate major modes of transportation in the relevant metropolitan area, including providers of public transportation; and

‘(C) a transportation improvement program for the metropolitan planning area has been approved by the relevant metropolitan planning organization and applicable Governor.

‘(3) DELEGATION OF AUTHORITY- The Secretary may--

‘(A) delegate to the appropriate State fact-finding authority regarding the certification of a tier II MPO under this subsection; and

‘(B) make the certification under paragraph (1) in consultation with the State.

‘(4) EFFECT OF FAILURE TO CERTIFY-

‘(A) WITHHOLDING OF PROJECT FUNDS- If a metropolitan transportation planning process of a metropolitan planning organization is not certified under paragraph (1), the Secretary may withhold up to 20 percent of the funds attributable to the metropolitan planning area of the metropolitan planning organization for projects funded under this title and chapter 53 of title 49.

‘(B) RESTORATION OF WITHHELD FUNDS- Any funds withheld under subparagraph (A) shall be restored to the metropolitan planning area on the date of certification of the metropolitan transportation planning process by the Secretary.

‘(5) PUBLIC INVOLVEMENT- In making a determination regarding certification under this subsection, the Secretary shall provide for public involvement appropriate to the metropolitan planning area under review.

‘(m) Performance-based Planning Processes Evaluation-

‘(1) IN GENERAL- The Secretary shall establish criteria to evaluate the effectiveness of the performance-based planning processes of metropolitan planning organizations under this section, taking into consideration the following:

‘(A) The extent to which the metropolitan planning organization has achieved, or is currently making substantial progress toward achieving, the performance targets specified in subsection (h)(2), taking into account whether the metropolitan planning organization developed meaningful performance targets.

‘(B) The extent to which the metropolitan planning organization has used proven best practices that help ensure transportation investment that is efficient and cost-effective.

‘(C) The extent to which the metropolitan planning organization--

‘(i) has developed an investment process that relies on public input and awareness to ensure that investments are transparent and accountable; and

‘(ii) provides regular reports allowing the public to access the information being collected in a format that allows the public to meaningfully assess the performance of the metropolitan planning organization.

‘(2) REPORT-

‘(A) IN GENERAL- Not later than 5 years after the date of enactment of the MAP-21, the Secretary shall submit to Congress a report evaluating--

‘(i) the overall effectiveness of performance-based planning as a tool for guiding transportation investments; and

‘(ii) the effectiveness of the performance-based planning process of each metropolitan planning organization under this section.

‘(B) PUBLICATION- The report under subparagraph (A) shall be published or otherwise made available in electronically accessible formats and means, including on the Internet.

‘(n) Additional Requirements for Certain Nonattainment Areas-

‘(1) IN GENERAL- Notwithstanding any other provision of this title or chapter 53 of title 49, Federal funds may not be advanced in any metropolitan planning area classified as a nonattainment area or maintenance area for any highway project that will result in a significant increase in the carrying capacity for single-occupant vehicles, unless the owner or operator of the project demonstrates that the project will achieve or make substantial progress toward achieving the performance targets described in subsection (h)(2).

‘(2) APPLICABILITY- This subsection applies to any nonattainment area or maintenance area within the boundaries of a metropolitan planning area, as determined under subsection (c).

‘(o) Effect of Section- Nothing in this section provides to any metropolitan planning organization the authority to impose any legal requirement on any transportation facility, provider, or project not subject to the requirements of this title or chapter 53 of title 49.

‘(p) Funding- Funds apportioned under section 104(b)(6) of this title and set aside under section 5305(g) of title 49 shall be available to carry out this section.

‘(q) Continuation of Current Review Practice-

‘(1) IN GENERAL- In consideration of the factors described in paragraph (2), any decision by the Secretary concerning a metropolitan transportation plan or transportation improvement program shall not be considered to be a Federal action subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(2) DESCRIPTION OF FACTORS- The factors referred to in paragraph (1) are that--

‘(A) metropolitan transportation plans and transportation improvement programs are subject to a reasonable opportunity for public comment;

‘(B) the projects included in metropolitan transportation plans and transportation improvement programs are subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

‘(C) decisions by the Secretary concerning metropolitan transportation plans and transportation improvement programs have not been reviewed under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) as of January 1, 1997.

‘(r) Schedule for Implementation- The Secretary shall issue guidance on a schedule for implementation of the changes made by this section, taking into consideration the established planning update cycle for metropolitan planning organizations. The Secretary shall not require a metropolitan planning organization to deviate from its established planning update cycle to implement changes made by this section. Metropolitan planning organizations shall reflect changes made to their transportation plan or transportation improvement program updates by not later than 2 years after the date of issuance of guidance by the Secretary.’.

SEC. 1202. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

(a) In General- Section 135 of title 23, United States Code, is amended to read as follows:

‘Sec. 135. Statewide and nonmetropolitan transportation planning

‘(a) Statewide Transportation Plans and STIPs-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- To accomplish the policy objectives described in section 134(a), each State shall develop a statewide transportation plan and a statewide transportation improvement program for all areas of the State in accordance with this section.

‘(B) INCORPORATION OF METROPOLITAN TRANSPORTATION PLANS AND TIPS- Each State shall incorporate in the statewide transportation plan and statewide transportation improvement program, without change or by reference, the metropolitan transportation plans and transportation improvement programs, respectively, for each metropolitan planning area in the State.

‘(C) NONMETROPOLITAN AREAS- Each State shall consult with local officials in small urbanized areas with a population of 50,000 or more individuals, but fewer than 200,000 individuals, as calculated according to the most recent decennial census, and nonurbanized areas of the State in preparing the nonmetropolitan portions of statewide transportation plans and statewide transportation improvement programs.

‘(2) CONTENTS- The statewide transportation plan and statewide transportation improvement program developed for each State shall provide for the development and integrated management and operation of transportation systems and facilities (including accessible pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation) that will function as--

‘(A) an intermodal transportation system for the State; and

‘(B) an integral part of an intermodal transportation system for the United States.

‘(3) PROCESS- The process for developing the statewide transportation plan and statewide transportation improvement program shall--

‘(A) provide for consideration of all modes of transportation; and

‘(B) be continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation needs to be addressed.

‘(b) Coordination and Consultation-

‘(1) IN GENERAL- Each State shall--

‘(A) coordinate planning carried out under this section with--

‘(i) the transportation planning activities carried out under section 134 for metropolitan areas of the State; and

‘(ii) statewide trade and economic development planning activities and related multistate planning efforts;

‘(B) coordinate planning carried out under this section with the transportation planning activities carried out by each nonmetropolitan planning organization in the State, as applicable;

‘(C) consult on planning carried out under this section with the transportation planning activities carried out by each rural planning organization in the State, as applicable; and

‘(D) develop the transportation portion of the State implementation plan as required by the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(2) MULTISTATE AREAS-

‘(A) IN GENERAL- The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan planning area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire metropolitan area.

‘(B) COORDINATION ALONG DESIGNATED TRANSPORTATION CORRIDORS- The Secretary shall encourage each Governor with responsibility for a portion of a multistate transportation corridor to provide coordinated transportation planning for the entire designated corridor.

‘(C) INTERSTATE COMPACTS- For purposes of this section, any 2 or more States--

‘(i) may enter into compacts, agreements, or organizations not in conflict with any Federal law for cooperative efforts and mutual assistance in support of activities authorized under this section, as the activities relate to interstate areas and localities within the States;

‘(ii) may establish such agencies (joint or otherwise) as the States determine to be appropriate for ensuring the effectiveness of the agreements and compacts; and

‘(iii) are encouraged to enter into such compacts, agreements, or organizations as are appropriate to develop planning documents in support of intercity or multistate area projects, facilities, and services, the relevant components of which shall be reflected in statewide transportation improvement programs and statewide transportation plans.

‘(D) RESERVATION OF RIGHTS- The right to alter, amend, or repeal any interstate compact or agreement entered into under this subsection is expressly reserved.

‘(c) Relationship With Other Planning Officials-

‘(1) IN GENERAL- The Secretary shall encourage each State to cooperate with Federal, tribal, State, and local officers and entities responsible for other types of planning activities that are affected by transportation in the relevant area (including planned growth, economic development, infrastructure services, housing, other public services, environmental protection, airport operations, high-speed and intercity passenger rail, freight rail, port access, and freight movements), to the maximum extent practicable, to ensure that the statewide and nonmetropolitan planning process, statewide transportation plans, and statewide transportation improvement programs are developed with due consideration for other related planning activities in the State.

‘(2) INCLUSION- Cooperation under paragraph (1) shall include the design and delivery of transportation services within the State that are provided by--

‘(A) recipients of assistance under sections 202, 203, and 204;

‘(B) recipients of assistance under chapter 53 of title 49;

‘(C) government agencies and nonprofit organizations (including representatives of the agencies and organizations) that receive Federal assistance from a source other than the Department of Transportation to provide nonemergency transportation services; and

‘(D) sponsors of regionally significant programs, projects, and services that are related to transportation and receive assistance from any public or private source.

‘(d) Scope of Planning Process-

‘(1) IN GENERAL- The statewide transportation planning process for a State under this section shall provide for consideration of projects, strategies, and services that will--

‘(A) support the economic vitality of the United States, the State, nonmetropolitan areas, and metropolitan areas, especially by enabling global competitiveness, travel and tourism (where applicable), productivity, and efficiency;

‘(B) increase the safety of the transportation system for motorized and nonmotorized users;

‘(C) increase the security of the transportation system for motorized and nonmotorized users;

‘(D) increase the accessibility and mobility of individuals and freight;

‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote consistency between transportation improvements and State and local planned growth and economic development patterns;

‘(F) enhance the integration and connectivity of the transportation system, across and between modes, for individuals and freight;

‘(G) increase efficient system management and operation; and

‘(H) emphasize the preservation of the existing transportation system.

‘(2) PERFORMANCE-BASED APPROACH-

‘(A) IN GENERAL- The statewide transportation planning process shall provide for the establishment and use of a performance-based approach to transportation decisionmaking to support the national goals described in section 150(b) of this title and section 5301(c) of title 49.

‘(B) SURFACE TRANSPORTATION PERFORMANCE TARGETS-

‘(i) IN GENERAL- Each State shall establish performance targets that address the performance measures described in sections 119(f), 148(h), and 167(i) to use in tracking attainment of critical outcomes for the region of the State.

‘(ii) COORDINATION- Selection of performance targets by a State shall be coordinated with relevant metropolitan planning organizations to ensure consistency, to the maximum extent practicable.

‘(C) PUBLIC TRANSPORTATION PERFORMANCE TARGETS- For providers of public transportation operating in urbanized areas with a population of fewer than 200,000 individuals, as calculated according to the most recent decennial census, and not represented by a metropolitan planning organization, each State shall adopt the performance targets identified by such providers of public transportation pursuant to sections 5326(c) and 5329(d) of title 49 for use in tracking attainment of critical outcomes for the region of the metropolitan planning organization.

‘(D) INTEGRATION OF OTHER PERFORMANCE-BASED PLANS- A State shall integrate into the statewide transportation planning process, directly or by reference, the goals, objectives, performance measures, and performance targets described in this paragraph in other State plans and processes, and asset management and safety plans developed by providers of public transportation in urbanized areas with a population of fewer than 200,000 individuals, as calculated according to the most recent decennial census, and not represented by a metropolitan planning organization, required as part of a performance-based program, including plans such as--

‘(i) the State National Highway System asset management plan;

‘(ii) asset management plans developed by providers of public transportation;

‘(iii) the State strategic highway safety plan;

‘(iv) a congestion mitigation and air quality performance plan developed under section 149(k) by a tier I metropolitan planning organization (as defined in section 134) representing a nonattainment or maintenance area;

‘(v) safety plans developed by providers of public transportation; and

‘(vi) the national freight strategic plan.

‘(E) USE OF PERFORMANCE MEASURES AND TARGETS- The performance measures and targets established under this paragraph shall be used, at a minimum, by a State as the basis for development of policies, programs, and investment priorities reflected in the statewide transportation plan and statewide transportation improvement program.

‘(3) FAILURE TO CONSIDER FACTORS- The failure to take into consideration 1 or more of the factors specified in paragraphs (1) and (2) shall not be subject to review by any court under this title, chapter 53 of title 49, subchapter II of chapter 5 of title 5, or chapter 7 of title 5 in any matter affecting a statewide transportation plan, a statewide transportation improvement program, a project or strategy, or the certification of a planning process.

‘(4) PARTICIPATION BY INTERESTED PARTIES-

‘(A) IN GENERAL- Each State shall provide to--

‘(i) nonmetropolitan local elected officials an opportunity to participate in accordance with subparagraph (B)(i); and

‘(ii) affected individuals, public agencies, and other interested parties notice and a reasonable opportunity to comment on the statewide transportation plan and statewide transportation improvement program.

‘(B) METHODS- In carrying out this paragraph, the State shall--

‘(i) develop and document a consultative process to carry out subparagraph (A)(i) that is separate and discrete from the public involvement process developed under clause (ii);

‘(ii) develop the statewide transportation plan and statewide transportation improvement program in consultation with interested parties, as appropriate, including by the formation of advisory groups representative of the State and interested parties that participate in the development of the statewide transportation plan and statewide transportation improvement program;

‘(iii) hold any public meetings at times and locations that are, as applicable--

‘(I) convenient; and

‘(II) in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);

‘(iv) employ visualization techniques to describe statewide transportation plans and statewide transportation improvement programs; and

‘(v) make public information available in appropriate electronically accessible formats and means, such as the Internet, to afford reasonable opportunity for consideration of public information under subparagraph (A).

‘(e) Coordination and Consultation-

‘(1) METROPOLITAN AREAS-

‘(A) IN GENERAL- Each State shall develop a statewide transportation plan and statewide transportation improvement program for each metropolitan area in the State by incorporating, without change or by reference, at a minimum, as prepared by each metropolitan planning organization designated for the metropolitan area under section 134--

‘(i) all regionally significant projects to be carried out during the 10-year period beginning on the effective date of the relevant existing metropolitan transportation plan; and

‘(ii) all projects to be carried out during the 4-year period beginning on the effective date of the relevant transportation improvement program.

‘(B) PROJECTED COSTS- Each metropolitan planning organization shall provide to each applicable State a description of the projected costs of implementing the projects included in the metropolitan transportation plan of the metropolitan planning organization for purposes of metropolitan financial planning and fiscal constraint.

‘(2) NONMETROPOLITAN AREAS- With respect to nonmetropolitan areas in a State, the statewide transportation plan and statewide transportation improvement program of the State shall be developed in consultation with affected nonmetropolitan local officials with responsibility for transportation, including providers of public transportation.

‘(3) INDIAN TRIBAL AREAS- With respect to each area of a State under the jurisdiction of an Indian tribe, the statewide transportation plan and statewide transportation improvement program of the State shall be developed in consultation with--

‘(A) the tribal government; and

‘(B) the Secretary of the Interior.

‘(4) FEDERAL LAND MANAGEMENT AGENCIES- With respect to each area of a State under the jurisdiction of a Federal land management agency, the statewide transportation plan and statewide transportation improvement program of the State shall be developed in consultation with the relevant Federal land management agency.

‘(5) CONSULTATION, COMPARISON, AND CONSIDERATION-

‘(A) IN GENERAL- A statewide transportation plan shall be developed, as appropriate, in consultation with Federal, tribal, State, and local agencies responsible for land use management, natural resources, infrastructure permitting, environmental protection, conservation, and historic preservation.

‘(B) COMPARISON AND CONSIDERATION- Consultation under subparagraph (A) shall involve the comparison of statewide transportation plans to, as available--

‘(i) Federal, tribal, State, and local conservation plans or maps; and

‘(ii) inventories of natural or historic resources.

‘(f) Statewide Transportation Plan-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- Each State shall develop a statewide transportation plan, the forecast period of which shall be not less than 20 years for all areas of the State, that provides for the development and implementation of the intermodal transportation system of the State.

‘(B) INITIAL PERIOD- A statewide transportation plan shall include, at a minimum, for the first 10-year period of the statewide transportation plan, the identification of existing and future transportation facilities that will function as an integrated statewide transportation system, giving emphasis to those facilities that serve important national, statewide, and regional transportation functions.

‘(C) SUBSEQUENT PERIOD- For the second 10-year period of the statewide transportation plan (referred to in this subsection as the ‘outer years period’), a statewide transportation plan--

‘(i) may include identification of future transportation facilities; and

‘(ii) shall describe the policies and strategies that provide for the development and implementation of the intermodal transportation system of the State.

‘(D) OTHER REQUIREMENTS- A statewide transportation plan shall--

‘(i) include, for the 20-year period covered by the statewide transportation plan, a description of--

‘(I) the projected aggregate cost of projects anticipated by a State to be implemented; and

‘(II) the revenues necessary to support the projects;

‘(ii) include, in such form as the Secretary determines to be appropriate, a description of--

‘(I) the existing transportation infrastructure, including an identification of highways, local streets and roads, bicycle and pedestrian facilities, public transportation facilities and services, commuter rail facilities and services, high-speed and intercity passenger rail facilities and services, freight facilities (including freight railroad and port facilities), multimodal and intermodal facilities, and intermodal connectors that, evaluated in the aggregate, function as an integrated transportation system;

‘(II) the performance measures and performance targets used in assessing the existing and future performance of the transportation system described in subsection (d)(2);

‘(III) the current and projected future usage of the transportation system, including, to the maximum extent practicable, an identification of existing or planned transportation rights-of-way, corridors, facilities, and related real properties;

‘(IV) a system performance report evaluating the existing and future condition and performance of the transportation system with respect to the performance targets described in subsection (d)(2) and updates to subsequent system performance reports, including--

‘(aa) progress achieved by the State in meeting performance targets, as compared to system performance recorded in previous reports; and

‘(bb) an accounting of the performance by the State on outlay of obligated project funds and delivery of projects that have reached substantial completion, in relation to the projects currently on the statewide transportation improvement program and those projects that have been removed from the previous statewide transportation improvement program;

‘(V) recommended strategies and investments for improving system performance over the planning horizon, including transportation systems management and operations strategies, maintenance strategies, demand management strategies, asset management strategies, capacity and enhancement investments, land use improvements, intelligent transportation systems deployment and technology adoption strategies as determined by the projected support of performance targets described in subsection (d)(2);

‘(VI) recommended strategies and investments to improve and integrate disability-related access to transportation infrastructure;

‘(VII) investment priorities for using projected available and proposed revenues over the short- and long-term stages of the planning horizon, in accordance with the financial plan required under paragraph (2);

‘(VIII) a description of interstate compacts entered into in order to promote coordinated transportation planning in multistate areas, if applicable;

‘(IX) an optional illustrative list of projects containing investments that--

‘(aa) are not included in the statewide transportation plan; but

‘(bb) would be so included if resources in addition to the resources identified in the financial plan under paragraph (2) were available;

‘(X) a discussion (developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies) of types of potential environmental and stormwater mitigation activities and potential areas to carry out those activities, including activities that may have the greatest potential to restore and maintain the environmental functions affected by the statewide transportation plan; and

‘(XI) recommended strategies and investments, including those developed by the State as part of interstate compacts, agreements, or organizations, that support intercity transportation; and

‘(iii) be updated by the State not less frequently than once every 5 years.

‘(2) FINANCIAL PLAN- A financial plan referred to in paragraph (1)(D)(ii)(VII) shall--

‘(A) be prepared by each State to support the statewide transportation plan; and

‘(B) contain a description of each of the following:

‘(i) Projected resource requirements during the 20-year planning horizon for implementing projects, strategies, and services recommended in the statewide transportation plan, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the State, any public transportation agency, and relevant metropolitan planning organizations, that are reasonably expected to be available to support the investment priorities recommended in the statewide transportation plan.

‘(iv) Each applicable project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(v) For the outer years period of the statewide transportation plan, a description of the aggregate cost ranges or bands, subject to the condition that any future funding source shall be reasonably expected to be available to support the projected cost ranges or bands.

‘(3) COORDINATION WITH CLEAN AIR ACT AGENCIES- For any nonmetropolitan area that is a nonattainment area or maintenance area, the State shall coordinate the development of the statewide transportation plan with the process for development of the transportation control measures of the State implementation plan required by the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(4) PUBLICATION- A statewide transportation plan involving Federal and non-Federal participation programs, projects, and strategies shall be published or otherwise made readily available by the State for public review, including (to the maximum extent practicable) in electronically accessible formats and means, such as the Internet, in such manner as the Secretary shall require.

‘(5) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST- Notwithstanding paragraph (2), a State shall not be required to select any project from the illustrative list of additional projects included in the statewide transportation plan under paragraph (1)(D)(ii)(IX).

‘(6) USE OF POLICY PLANS- Notwithstanding any other provision of this section, a State that has in effect, as of the date of enactment of the MAP-21, a statewide transportation plan that follows a policy plan approach--

‘(A) may, for 4 years after the date of enactment of the MAP-21, continue to use a policy plan approach to the statewide transportation plan; and

‘(B) shall be subject to the requirements of this subsection only to the extent that such requirements were applicable under this section (as in effect on the day before the date of enactment of the MAP-21).

‘(g) Statewide Transportation Improvement Programs-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- In consultation with nonmetropolitan officials with responsibility for transportation and affected public transportation operators, the State shall develop a statewide transportation improvement program for the State that--

‘(i) includes projects consistent with the statewide transportation plan;

‘(ii) reflects the investment priorities established in the statewide transportation plan; and

‘(iii) once implemented, makes significant progress toward achieving the performance targets described in subsection (d)(2).

‘(B) OPPORTUNITY FOR PARTICIPATION- In developing a statewide transportation improvement program, the State, in cooperation with affected public transportation operators, shall provide an opportunity for participation by interested parties (including State representatives of nonmotorized users) in the development of the statewide transportation improvement program, in accordance with subsection (e).

‘(C) OTHER REQUIREMENTS-

‘(i) IN GENERAL- A statewide transportation improvement program shall--

‘(I) cover a period of not less than 4 years; and

‘(II) be updated not less frequently than once every 4 years, or more frequently, as the Governor determines to be appropriate.

‘(ii) INCORPORATION OF TIPS- A statewide transportation improvement program shall incorporate any relevant transportation improvement program developed by a metropolitan planning organization under section 134, without change.

‘(iii) PROJECTS- Each project included in a statewide transportation improvement program shall be--

‘(I) consistent with the statewide transportation plan developed under this section for the State;

‘(II) identical to a project or phase of a project described in a relevant transportation improvement program; and

‘(III) for any project located in a nonattainment area or maintenance area, carried out in accordance with the applicable State air quality implementation plan developed under the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(2) CONTENTS-

‘(A) PRIORITY LIST- A statewide transportation improvement program shall include a priority list of proposed federally supported projects and strategies, to be carried out during the 4-year period beginning on the date of adoption of the statewide transportation improvement program, and during each 4-year period thereafter, using existing and reasonably available revenues in accordance with the financial plan under paragraph (3).

‘(B) DESCRIPTIONS- Each project or phase of a project included in a statewide transportation improvement program shall include sufficient descriptive material (such as type of work, termini, length, estimated completion date, and other similar factors) to identify--

‘(i) the project or project phase; and

‘(ii) the effect that the project or project phase will have in addressing the performance targets described in subsection (d)(2).

‘(C) PERFORMANCE TARGET ACHIEVEMENT- A statewide transportation improvement program shall include, to the maximum extent practicable, a discussion of the anticipated effect of the statewide transportation improvement program toward achieving the performance targets established in the statewide transportation plan, linking investment priorities to those performance targets.

‘(D) ILLUSTRATIVE LIST OF PROJECTS- An optional illustrative list of projects may be prepared containing additional investment priorities that--

‘(i) are not included in the statewide transportation improvement program; but

‘(ii) would be so included if resources in addition to the resources identified in the financial plan under paragraph (3) were available.

‘(3) FINANCIAL PLAN- A financial plan referred to in paragraph (2)(D)(ii) shall--

‘(A) be prepared by each State to support the statewide transportation improvement program; and

‘(B) contain a description of each of the following:

‘(i) Projected resource requirements for implementing projects, strategies, and services recommended in the statewide transportation improvement program, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the State and relevant metropolitan planning organizations and public transportation agencies, that are reasonably expected to be available to support the investment priorities recommended in the statewide transportation improvement program.

‘(iv) Each applicable project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(4) INCLUDED PROJECTS-

‘(A) PROJECTS UNDER THIS TITLE AND CHAPTER 53 OF TITLE 49- A statewide transportation improvement program developed under this subsection for a State shall include the projects within the State that are proposed for funding under chapter 1 of this title and chapter 53 of title 49.

‘(B) PROJECTS UNDER CHAPTER 2-

‘(i) REGIONALLY SIGNIFICANT- Each regionally significant project proposed for funding under chapter 2 shall be identified individually in the statewide transportation improvement program.

‘(ii) NONREGIONALLY SIGNIFICANT- A description of each project proposed for funding under chapter 2 that is not determined to be regionally significant shall be contained in 1 line item or identified individually in the statewide transportation improvement program.

‘(5) PUBLICATION-

‘(A) IN GENERAL- A statewide transportation improvement program shall be published or otherwise made readily available by the State for public review in electronically accessible formats and means, such as the Internet.

‘(B) ANNUAL LIST OF PROJECTS- An annual list of projects, including investments in pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation, for which Federal funds have been obligated during the preceding fiscal year shall be published or otherwise made available by the cooperative effort of the State, public transportation operator, and relevant metropolitan planning organizations in electronically accessible formats and means, such as the Internet, in a manner that is consistent with the categories identified in the relevant statewide transportation improvement program.

‘(6) PROJECT SELECTION FOR URBANIZED AREAS WITH POPULATIONS OF FEWER THAN 200,000 NOT REPRESENTED BY DESIGNATED MPOS- Projects carried out in urbanized areas with populations of fewer than 200,000 individuals, as calculated according to the most recent decennial census, and that are not represented by designated metropolitan planning organizations, shall be selected, from the approved statewide transportation improvement program (including projects carried out on the National Highway System and other projects carried out under this title or under sections 5310 and 5311 of title 49) by the State, in cooperation with the affected nonmetropolitan planning organization, if any exists, and in consultation with the affected nonmetropolitan area local officials with responsibility for transportation.

‘(7) APPROVAL BY SECRETARY-

‘(A) IN GENERAL- Not less frequently than once every 4 years, a statewide transportation improvement program developed under this subsection shall be reviewed and approved by the Secretary, based on the current planning finding of the Secretary under subparagraph (B).

‘(B) PLANNING FINDING- The Secretary shall make a planning finding referred to in subparagraph (A) not less frequently than once every 5 years regarding whether the transportation planning process through which statewide transportation plans and statewide transportation improvement programs are developed is consistent with this section and section 134.

‘(8) MODIFICATIONS TO PROJECT PRIORITY- Notwithstanding any other provision of law, approval by the Secretary shall not be required to carry out a project included in an approved statewide transportation improvement program in place of another project in the statewide transportation improvement program.

‘(h) Certification-

‘(1) IN GENERAL- The Secretary shall--

‘(A) ensure that the statewide transportation planning process of a State is being carried out in accordance with this section and applicable Federal law (including rules and regulations); and

‘(B) subject to paragraph (2), certify, not later than 180 days after the date of enactment of the MAP-21 and not less frequently than once every 5 years thereafter, that the requirements of subparagraph (A) are met with respect to the statewide transportation planning process.

‘(2) REQUIREMENTS FOR CERTIFICATION- The Secretary may make a certification under paragraph (1)(B) if--

‘(A) the statewide transportation planning process complies with the requirements of this section and other applicable Federal law; and

‘(B) a statewide transportation improvement program for the State has been approved by the Governor of the State.

‘(3) EFFECT OF FAILURE TO CERTIFY-

‘(A) WITHHOLDING OF PROJECT FUNDS- If a statewide transportation planning process of a State is not certified under paragraph (1), the Secretary may withhold up to 20 percent of the funds attributable to the State for projects funded under this title and chapter 53 of title 49.

‘(B) RESTORATION OF WITHHELD FUNDS- Any funds withheld under subparagraph (A) shall be restored to the State on the date of certification of the statewide transportation planning process by the Secretary.

‘(4) PUBLIC INVOLVEMENT- In making a determination regarding certification under this subsection, the Secretary shall provide for public involvement appropriate to the State under review.

‘(i) Performance-based Planning Processes Evaluation-

‘(1) IN GENERAL- The Secretary shall establish criteria to evaluate the effectiveness of the performance-based planning processes of States, taking into consideration the following:

‘(A) The extent to which the State has achieved, or is currently making substantial progress toward achieving, the performance targets described in subsection (d)(2), taking into account whether the State developed meaningful performance targets.

‘(B) The extent to which the State has used proven best practices that help ensure transportation investment that is efficient and cost-effective.

‘(C) The extent to which the State--

‘(i) has developed an investment process that relies on public input and awareness to ensure that investments are transparent and accountable; and

‘(ii) provides regular reports allowing the public to access the information being collected in a format that allows the public to meaningfully assess the performance of the State.

‘(2) REPORT-

‘(A) IN GENERAL- Not later than 5 years after the date of enactment of the MAP-21, the Secretary shall submit to Congress a report evaluating--

‘(i) the overall effectiveness of performance-based planning as a tool for guiding transportation investments; and

‘(ii) the effectiveness of the performance-based planning process of each State.

‘(B) PUBLICATION- The report under subparagraph (A) shall be published or otherwise made available in electronically accessible formats and means, including on the Internet.

‘(j) Funding- Funds apportioned under section 104(b)(6) of this title and set aside under section 5305(g) of title 49 shall be available to carry out this section.

‘(k) Continuation of Current Review Practice-

‘(1) IN GENERAL- In consideration of the factors described in paragraph (2), any decision by the Secretary concerning a statewide transportation plan or statewide transportation improvement program shall not be considered to be a Federal action subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(2) DESCRIPTION OF FACTORS- The factors referred to in paragraph (1) are that--

‘(A) statewide transportation plans and statewide transportation improvement programs are subject to a reasonable opportunity for public comment;

‘(B) the projects included in statewide transportation plans and statewide transportation improvement programs are subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

‘(C) decisions by the Secretary concerning statewide transportation plans and statewide transportation improvement programs have not been reviewed under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) as of January 1, 1997.

‘(l) Schedule for Implementation- The Secretary shall issue guidance on a schedule for implementation of the changes made by this section, taking into consideration the established planning update cycle for States. The Secretary shall not require a State to deviate from its established planning update cycle to implement changes made by this section. States shall reflect changes made to their transportation plan or transportation improvement program updates not later than 2 years after the date of issuance of guidance by the Secretary under this subsection.’.

(b) Conforming Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 135 and inserting the following:

‘135. Statewide and nonmetropolitan transportation planning.’.

SEC. 1203. NATIONAL GOALS.

(a) In General- Section 150 of title 23, United States Code, is amended to read as follows:

‘Sec. 150. National goals

‘(a) Declaration of Policy- Performance management will transform the Federal-aid highway program and provide a means to the most efficient investment of Federal transportation funds by refocusing on national transportation goals, increasing the accountability and transparency of the Federal-aid highway program, and improving project decisionmaking through performance-based planning and programming.

‘(b) National Goals- It is in the interest of the United States to focus the Federal-aid highway program on the following national goals:

‘(1) SAFETY- To achieve a significant reduction in traffic fatalities and serious injuries on all public roads.

‘(2) INFRASTRUCTURE CONDITION- To maintain the highway infrastructure asset system in a state of good repair.

‘(3) SYSTEM RELIABILITY- To improve the efficiency of the surface transportation system.

‘(4) FREIGHT MOVEMENT AND ECONOMIC VITALITY- To improve the national freight network, strengthen the ability of rural communities to access national and international trade markets, and support regional economic development.

‘(5) ENVIRONMENTAL SUSTAINABILITY- To enhance the performance of the transportation system while protecting and enhancing the natural environment.

‘(6) REDUCED PROJECT DELIVERY DELAYS- To reduce project costs, promote jobs and the economy, and expedite the movement of people and goods by accelerating project completion through eliminating delays in the project development and delivery process, including reducing regulatory burdens and improving agencies’ work practices.’.

(b) Conforming Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 150 and inserting the following:

‘150. National goals.’.

Subtitle C--Acceleration of Project Delivery

SEC. 1301. PROJECT DELIVERY INITIATIVE.

(a) Declaration of Policy- It is the policy of the United States that--

(1) it is in the national interest for the Department, State departments of transportation, transit agencies, and all other recipients of Federal transportation funds--

(A) to accelerate project delivery and reduce costs; and

(B) to ensure that the planning, design, engineering, construction, and financing of transportation projects is done in an efficient and effective manner, promoting accountability for public investments and encouraging greater private sector involvement in project financing and delivery while enhancing safety and protecting the environment;

(2) delay in the delivery of transportation projects increases project costs, harms the economy of the United States, and impedes the travel of the people of the United States and the shipment of goods for the conduct of commerce; and

(3) the Secretary shall identify and promote the deployment of innovation aimed at reducing the time and money required to deliver transportation projects while enhancing safety and protecting the environment.

(b) Establishment of Initiative-

(1) IN GENERAL- To advance the policy described in subsection (a), the Secretary shall carry out a project delivery initiative under this section.

(2) PURPOSES- The purposes of the project delivery initiative shall be--

(A) to develop and advance the use of best practices to accelerate project delivery and reduce costs across all modes of transportation and expedite the deployment of technology and innovation;

(B) to implement provisions of law designed to accelerate project delivery; and

(C) to select eligible projects for applying experimental features to test innovative project delivery techniques.

(3) ADVANCING THE USE OF BEST PRACTICES-

(A) IN GENERAL- In carrying out the initiative under this section, the Secretary shall identify and advance best practices to reduce delivery time and project costs, from planning through construction, for transportation projects and programs of projects regardless of mode and project size.

(B) ADMINISTRATION- To advance the use of best practices, the Secretary shall--

(i) engage interested parties, affected communities, resource agencies, and other stakeholders to gather information regarding opportunities for accelerating project delivery and reducing costs;

(ii) establish a clearinghouse for the collection, documentation, and advancement of existing and new innovative approaches and best practices;

(iii) disseminate information through a variety of means to transportation stakeholders on new innovative approaches and best practices; and

(iv) provide technical assistance to assist transportation stakeholders in the use of flexibility authority to resolve project delays and accelerate project delivery if feasible.

(4) IMPLEMENTATION OF ACCELERATED PROJECT DELIVERY- The Secretary shall ensure that the provisions of this subtitle designed to accelerate project delivery are fully implemented, including--

(A) expanding eligibility of early acquisition of property prior to completion of environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

(B) allowing the use of the construction manager or general contractor method of contracting in the Federal-aid highway system; and

(C) establishing a demonstration program to streamline the relocation process by permitting a lump-sum payment for acquisition and relocation if elected by the displaced occupant.

SEC. 1302. CLARIFIED ELIGIBILITY FOR EARLY ACQUISITION ACTIVITIES PRIOR TO COMPLETION OF NEPA REVIEW.

(a) In General- The acquisition of real property in anticipation of a federally assisted or approved surface transportation project that may use the property shall not be prohibited prior to the completion of reviews of the surface transportation project under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) if the acquisition does not--

(1) have an adverse environmental effect; or

(2)(A) limit the choice of reasonable alternatives for the proposed project; or

(B) prevent the lead agency from making an impartial decision as to whether to select an alternative that is being considered during the environmental review process.

(b) Early Acquisition of Real Property Interests for Highways- Section 108 of title 23, United States Code, is amended--

(1) in the section heading by inserting ‘interests’ after ‘real property’;

(2) in subsection (a) by inserting ‘interests’ after ‘real property’ each place it appears; and

(3) in subsection (c)--

(A) in the subsection heading by striking ‘Rights-of-way’ and inserting ‘Real Property Interests’;

(B) in paragraph (1)--

(i) in the matter preceding subparagraph (A) by inserting ‘at any time’ after ‘may be used’; and

(ii) in subparagraph (A)--

(I) by striking ‘rights-of-way’ the first place it appears and inserting ‘real property interests’; and

(II) by striking ‘, if the rights-of-way are subsequently incorporated into a project eligible for surface transportation program funds’; and

(C) by striking paragraph (2) and inserting the following:

‘(2) TERMS AND CONDITIONS-

‘(A) ACQUISITION OF REAL PROPERTY INTERESTS-

‘(i) IN GENERAL- Subject to the other provisions of this section, prior to completion of the review process for the project required by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), a public authority may carry out acquisition of real property interests that may be used for a project.

‘(ii) REQUIREMENTS- An acquisition under clause (i) may be authorized by project agreement and is eligible for Federal-aid reimbursement as a project expense if the Secretary finds that the acquisition--

‘(I) will not cause any significant adverse environmental impact;

‘(II) will not limit the choice of reasonable alternatives for the project or otherwise influence the decision of the Secretary on any approval required for the project;

‘(III) does not prevent the lead agency from making an impartial decision as to whether to accept an alternative that is being considered in the environmental review process;

‘(IV) is consistent with the State transportation planning process under section 135;

‘(V) complies with other applicable Federal laws (including regulations);

‘(VI) will be acquired through negotiation, without the threat of condemnation; and

‘(VII) will not result in a reduction or elimination of benefits or assistance to a displaced person required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) and title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).

‘(B) DEVELOPMENT- Real property interests acquired under this subsection may not be developed in anticipation of a project until all required environmental reviews for the project have been completed.

‘(C) REIMBURSEMENT- If Federal-aid reimbursement is made for real property interests acquired early under this section and the real property interests are not subsequently incorporated into a project eligible for surface transportation funds within the time allowed by subsection (a)(2), the Secretary shall offset the amount reimbursed against funds apportioned to the State.

‘(D) OTHER CONDITIONS- The Secretary may establish such other conditions or restrictions on acquisitions as the Secretary determines to be appropriate.’.

SEC. 1303. EFFICIENCIES IN CONTRACTING.

(a) Authority- Section 112(b) of title 23, United States Code, is amended by adding at the end the following:

‘(4) CONSTRUCTION MANAGER; GENERAL CONTRACTOR-

‘(A) PROCEDURE-

‘(i) IN GENERAL- A contracting agency may award a 2-phase contract to a construction manager or general contractor for preconstruction and construction services.

‘(ii) PRECONSTRUCTION PHASE- In the preconstruction phase of a contract under this subparagraph, the construction manager shall provide the contracting agency with advice relating to scheduling, work sequencing, cost engineering, constructability, cost estimating, and risk identification.

‘(iii) AGREEMENT TO PRICE-

‘(I) IN GENERAL- Prior to the start of the second phase of a contract under this subparagraph, the owner and the construction manager may agree to a price for the construction of the project or a portion of the project.

‘(II) RESULT- If an agreement is reached, the construction manager shall become the general contractor for the construction of the project at the negotiated schedule and price.

‘(B) SELECTION- A contract shall be awarded to a construction manager or general contractor under this paragraph using a competitive selection process under which the contract is awarded on the basis of--

‘(i) qualifications;

‘(ii) experience;

‘(iii) best value; or

‘(iv) any other combination of factors considered appropriate by the contracting agency.

‘(C) TIMING-

‘(i) IN GENERAL- Prior to the completion of the environmental review process required under section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332), a contracting agency may issue requests for proposals, proceed with the award of the first phase of construction manager or general contractor contract, and issue notices to proceed with preliminary design, to the extent that those actions do not limit any reasonable range of alternatives.

‘(ii) NEPA PROCESS-

‘(I) IN GENERAL- A contracting agency shall not proceed with the award of the second phase, and shall not proceed, or permit any consultant or contractor to proceed, with final design or construction until completion of the environmental review process required under section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332).

‘(II) REQUIREMENT- The Secretary shall require that a contract include appropriate provisions to ensure achievement of the objectives of section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332) and compliance with other applicable Federal laws and regulations occurs.

‘(iii) SECRETARIAL APPROVAL- Prior to authorizing construction activities, the Secretary shall approve--

‘(I) the estimate of the contracting agency for the entire project; and

‘(II) any price agreement with the general contractor for the project or a portion of the project.

‘(iv) TERMINATION PROVISION- The Secretary shall require a contract to include an appropriate termination provision in the event that a no-build alternative is selected.’.

(b) Regulations- The Secretary shall promulgate such regulations as are necessary to carry out the amendment made by subsection (a).

(c) Effect on Experimental Program- Nothing in this section or the amendment made by this section affects the authority to carry out, or any project carried out under, any experimental program concerning construction manager risk that is being carried out by the Secretary as of the date of enactment of this Act.

SEC. 1304. INNOVATIVE PROJECT DELIVERY METHODS.

(a) Declaration of Policy-

(1) IN GENERAL- Congress declares that it is in the national interest to promote the use of innovative technologies and practices that increase the efficiency of construction of, improve the safety of, and extend the service life of highways and bridges.

(2) INCLUSIONS- The innovative technologies and practices described in paragraph (1) include state-of-the-art intelligent transportation system technologies, elevated performance standards, and new highway construction business practices that improve highway safety and quality, accelerate project delivery, and reduce congestion related to highway construction.

(b) Federal Share- Section 120(c) of title 23, United States Code, is amended by adding at the end the following:

‘(3) INNOVATIVE PROJECT DELIVERY-

‘(A) IN GENERAL- Except as provided in subparagraph (C), the Federal share payable on account of a project or activity carried out with funds apportioned under paragraph (1), (2), or (5) of section 104(b) may, at the discretion of the State, be up to 100 percent for any such project, program, or activity that the Secretary determines--

‘(i) contains innovative project delivery methods that improve work zone safety for motorists or workers and the quality of the facility;

‘(ii) contains innovative technologies, manufacturing processes, financing, or contracting methods that improve the quality, extend the service life, or decrease the long-term costs of maintaining highways and bridges;

‘(iii) accelerates project delivery while complying with other applicable Federal laws (including regulations) and not causing any significant adverse environmental impact; or

‘(iv) reduces congestion related to highway construction.

‘(B) EXAMPLES- Projects, programs, and activities described in subparagraph (A) may include the use of--

‘(i) prefabricated bridge elements and systems and other technologies to reduce bridge construction time;

‘(ii) innovative construction equipment, materials, or techniques, including the use of in-place recycling technology and digital 3-dimensional modeling technologies;

‘(iii) innovative contracting methods, including the design-build and the construction manager-general contractor contracting methods;

‘(iv) intelligent compaction equipment; or

‘(v) contractual provisions that offer a contractor an incentive payment for early completion of the project, program, or activity, subject to the condition that the incentives are accounted for in the financial plan of the project, when applicable.

‘(C) LIMITATIONS-

‘(i) IN GENERAL- In each fiscal year, a State may use the authority under subparagraph (A) for up to 10 percent of the combined apportionments of the State under paragraphs (1), (2), and (5) of section 104(b).

‘(ii) FEDERAL SHARE INCREASE- The Federal share payable on account of a project or activity described in subparagraph (A) may be increased by up to 5 percent of the total project cost.’.

SEC. 1305. ASSISTANCE TO AFFECTED STATE AND FEDERAL AGENCIES.

Section 139(j) of title 23, United States Code, is amended by adding at the end the following:

‘(6) MEMORANDUM OF UNDERSTANDING- Prior to providing funds approved by the Secretary for dedicated staffing at an affected Federal agency under paragraphs (1) and (2), the affected Federal agency and the State agency shall enter into a memorandum of understanding that establishes the projects and priorities to be addressed by the use of the funds.’.

SEC. 1306. APPLICATION OF CATEGORICAL EXCLUSIONS FOR MULTIMODAL PROJECTS.

(a) In General- Section 304 of title 49, United States Code, is amended to read as follows:

‘Sec. 304. Application of categorical exclusions for multimodal projects

‘(a) Definitions- In this section:

‘(1) COOPERATING AUTHORITY- The term ‘cooperating authority’ means a Department of Transportation operating authority that is not the lead authority.

‘(2) LEAD AUTHORITY- The term ‘lead authority’ means a Department of Transportation operating administration or secretarial office that--

‘(A) is the lead authority over a proposed multimodal project; and

‘(B) has determined that the components of the project that fall under the modal expertise of the lead authority--

‘(i) satisfy the conditions for a categorical exclusion under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) implementing regulations or procedures of the lead authority; and

‘(ii) do not require the preparation of an environmental assessment or an environmental impact statement under that Act.

‘(3) MULTIMODAL PROJECT- The term ‘multimodal project’ has the meaning given the term in section 139(a) of title 23.

‘(b) Exercise of Authorities- The authorities granted in this section may be exercised for a multimodal project, class of projects, or program of projects that are carried out under this title.

‘(c) Application of Categorical Exclusions for Multimodal Projects- When considering the environmental impacts of a proposed multimodal project, a lead authority may apply a categorical exclusion designated under the implementing regulations or procedures of a cooperating authority for other components of the project, on the conditions that--

‘(1) the multimodal project is funded under 1 grant agreement administered by the lead authority;

‘(2) the multimodal project has components that require the expertise of a cooperating authority to assess the environmental impacts of the components;

‘(3) the component of the project to be covered by the categorical exclusion of the cooperating authority has independent utility;

‘(4) the cooperating authority, in consultation with the lead authority, follows National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) implementing regulations or procedures and determines that a categorical exclusion under that Act applies to the components; and

‘(5) the lead authority has determined that--

‘(A) the project, using the categorical exclusions of the lead and cooperating authorities, does not individually or cumulatively have a significant impact on the environment; and

‘(B) extraordinary circumstances do not exist that merit further analysis and documentation in an environmental impact statement or environmental assessment required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(d) Modal Cooperation-

‘(1) IN GENERAL- A cooperating authority shall provide modal expertise to a lead authority with administrative authority over a multimodal project on such aspects of the project in which the cooperating authority has expertise.

‘(2) USE OF CATEGORICAL EXCLUSION- In a case described in paragraph (1), the 1 or more categorical exclusions of a cooperating authority may be applied by the lead authority once the cooperating authority reviews the project on behalf of the lead authority and determines the project satisfies the conditions for a categorical exclusion under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) implementing regulations or procedures of the cooperating authority and this section.’.

(b) Conforming Amendment- The item relating to section 304 in the analysis for title 49, United States Code, is amended to read as follows:

‘304. Application of categorical exclusions for multimodal projects.’.

SEC. 1307. STATE ASSUMPTION OF RESPONSIBILITIES FOR CATEGORICAL EXCLUSIONS.

Section 326 of title 23, United States Code, is amended--

(1) by striking subsection (d) and inserting the following:

‘(d) Termination-

‘(1) TERMINATION BY THE SECRETARY- The Secretary may terminate any assumption of responsibility under a memorandum of understanding on a determination that the State is not adequately carrying out the responsibilities assigned to the State.

‘(2) TERMINATION BY THE STATE- The State may terminate the participation of the State in the program at any time by providing to the Secretary a notice by not later than the date that is 90 days before the date of termination, and subject to such terms and conditions as the Secretary may provide.’; and

(2) by adding at the end the following:

‘(f) Legal Fees- A State assuming the responsibilities of the Secretary under this section for a specific project may use funds apportioned to the State under section 104(b)(2) for attorneys fees directly attributable to eligible activities associated with the project.’.

SEC. 1308. SURFACE TRANSPORTATION PROJECT DELIVERY PROGRAM.

(a) In General- Section 327 of title 23, United States Code, is amended--

(1) in the section heading by striking ‘pilot’;

(2) in subsection (a)--

(A) in paragraph (1) by striking ‘pilot’; and

(B) in paragraph (2)--

‘(i) in subparagraph (B)--

‘(I) in clause (i), by striking ‘but’; and

‘(II) by striking clause (ii) and inserting the following:

‘(ii) at the request of the State, the Secretary may also assign to the State, and the State may assume, the responsibilities of the Secretary with respect to 1 or more railroad, public transportation, or multimodal projects within the State under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

‘(iii) in a State that has assumed the responsibilities of the Secretary under clause (ii), a recipient of assistance under chapter 53 of title 49 may request that the Secretary maintain the responsibilities of the Secretary with respect to 1 or more public transportation projects within the State under the National Environmental Policy Act of 1969 (42 U.S.C. 13 4321 et seq.); but

‘(iv) the Secretary may not assign--

‘(I) any responsibility imposed on the Secretary by section 134 or 135; or

‘(II) responsibility for any conformity determination required under section 176 of the Clean Air Act (42 U.S.C. 7506).’; and

(i) by adding at the end the following:

‘(F) LEGAL FEES- A State assuming the responsibilities of the Secretary under this section for a specific project may use funds apportioned to the State under section 104(b)(2) for attorneys fees directly attributable to eligible activities associated with the project.’;

(3) in subsection (b)--

(A) by striking paragraph (1);

(B) by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively; and

(C) in subparagraph (A) of paragraph (3) (as so redesignated) by striking ‘(2)’ and inserting ‘(1)’;

(4) in subsection (c)--

(A) in paragraph (3)(D) by striking the period at the end and inserting a semicolon; and

(B) by adding at the end the following:

‘(4) require the State to provide to the Secretary any information the Secretary considers necessary to ensure that the State is adequately carrying out the responsibilities assigned to the State;

‘(5) require the Secretary--

‘(A) after a period of 5 years, to evaluate the ability of the State to carry out the responsibility assumed under this section;

‘(B) if the Secretary determines that the State is not ready to effectively carry out the responsibilities the State has assumed, to reevaluate the readiness of the State every 3 years, or at such other frequency as the Secretary considers appropriate, after the initial 5-year evaluation, until the State is ready to assume the responsibilities on a permanent basis; and

‘(C) once the Secretary determines that the State is ready to permanently assume the responsibilities of the Secretary, not to require any further evaluations; and

‘(6) require the State to provide the Secretary with any information, including regular written reports, as the Secretary may require in conducting evaluations under paragraph (5).’;

(5) by striking subsection (g);

(6) by redesignating subsections (h) and (i) as subsections (g) and (h), respectively; and

(7) in subsection (h) (as so redesignated)--

(A) by striking paragraph (1);

(B) by redesignating paragraph (2) as paragraph (1); and

(C) by inserting after paragraph (1) (as so redesignated) the following:

‘(2) TERMINATION BY THE STATE- The State may terminate the participation of the State in the program at any time by providing to the Secretary a notice by not later than the date that is 90 days before the date of termination, and subject to such terms and conditions as the Secretary may provide.’.

(b) Conforming Amendment- The item relating to section 327 in the analysis of title 23, United States Code, is amended to read as follows:

‘327. Surface transportation project delivery program.’.

SEC. 1309. CATEGORICAL EXCLUSION FOR PROJECTS WITHIN THE RIGHT-OF-WAY.

(a) In General- Not later than 30 days after the date of enactment of this Act, the Secretary shall publish a notice of proposed rulemaking for a categorical exclusion that meets the definitions (as in effect on that date) of section 1508.4 of title 40, Code of Federal Regulations, and section 771.117 of title 23, Code of Federal Regulations, for a project (as defined in section 101(a) of title 23, United States Code)--

(1) that is located solely within the right-of-way of an existing highway, such as new turn lanes and bus pull-offs;

(2) that does not include the addition of a through lane or new interchange; and

(3) for which the project sponsor demonstrates that the project--

(A) is intended to improve safety, alleviate congestion, or improve air quality; or

(B) would improve or maintain pavement or structural conditions or achieve a state of good repair.

(b) Notice- Not later than 60 days after the date of enactment of this Act, the Secretary shall publish a notice of proposed rulemaking to further define and implement subsection (a) within subsection (c) or (d) of section 771.117 of title 23, Code of Federal Regulations (as in effect on the date of enactment of the MAP-21).

SEC. 1310. PROGRAMMATIC AGREEMENTS AND ADDITIONAL CATEGORICAL EXCLUSIONS.

(a) In General- Not later than 60 days after the date of enactment of this Act, the Secretary shall--

(1) survey the use by the Department of Transportation of categorical exclusions in transportation projects since 2005;

(2) publish a review of the survey that includes a description of--

(A) the types of actions categorically excluded; and

(B) any requests previously received by the Secretary for new categorical exclusions; and

(3) solicit requests from State departments of transportation, transit authorities, metropolitan planning organizations, or other government agencies for new categorical exclusions.

(b) New Categorical Exclusions- Not later than 120 days after the date of enactment of this Act, the Secretary shall publish a notice of proposed rulemaking to propose new categorical exclusions received by the Secretary under subsection (a), to the extent that the categorical exclusions meet the criteria for a categorical exclusion under section 1508.4 of title 40, Code of Federal Regulations and section 771.117(a) of title 23, Code of Federal Regulations (as those regulations are in effect on the date of the notice).

(c) Additional Actions- The Secretary shall issue a proposed rulemaking to move the following types of actions from subsection (d) of section 771.117 of title 23, Code of Federal Regulations (as in effect on the date of enactment of this Act), to subsection (c) of that section, to the extent that such movement complies with the criteria for a categorical exclusion under section 1508.4 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this Act):

(1) Modernization of a highway by resurfacing, restoration, rehabilitation, reconstruction, adding shoulders, or adding auxiliary lanes (including parking, weaving, turning, and climbing).

(2) Highway safety or traffic operations improvement projects, including the installation of ramp metering control devices and lighting.

(3) Bridge rehabilitation, reconstruction, or replacement or the construction of grade separation to replace existing at-grade railroad crossings.

(d) Programmatic Agreements-

(1) IN GENERAL- The Secretary shall seek opportunities to enter into programmatic agreements with the States that establish efficient administrative procedures for carrying out environmental and other required project reviews.

(2) INCLUSIONS- Programmatic agreements authorized under paragraph (1) may include agreements that allow a State to determine on behalf of the Federal Highway Administration whether a project is categorically excluded from the preparation of an environmental assessment or environmental impact statement under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

(3) DETERMINATIONS- An agreement described in paragraph (2) may include determinations by the Secretary of the types of projects categorically excluded (consistent with section 1508.4 of title 40, Code of Federal Regulations) in the State in addition to the types listed in subsections (c) and (d) of section 771.117 of title 23, Code of Federal Regulations (as in effect on the date of enactment of this Act).

SEC. 1311. ACCELERATED DECISIONMAKING IN ENVIRONMENTAL REVIEWS.

(a) In General- When preparing a final environmental impact statement under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), if the lead agency makes changes in response to comments that are minor and are confined to factual corrections or explanations of why the comments do not warrant further agency response, the lead agency may write on errata sheets attached to the statement instead of rewriting the draft statement, on the condition that the errata sheets--

(1) cite the sources, authorities, or reasons that support the position of the agency; and

(2) if appropriate, indicate the circumstances that would trigger agency reappraisal or further response.

(b) Incorporation- To the maximum extent practicable, the lead agency shall expeditiously develop a single document that consists of a final environmental impact statement and a record of decision unless--

(1) the final environmental impact statement makes substantial changes to the proposed action that are relevant to environmental or safety concerns; or

(2) there are significant new circumstances or information relevant to environmental concerns and that bear on the proposed action or the impacts of the proposed action.

SEC. 1312. MEMORANDA OF AGENCY AGREEMENTS FOR EARLY COORDINATION.

(a) In General- It is the sense of Congress that--

(1) the Secretary and other Federal agencies with relevant jurisdiction in the environmental review process should cooperate with each other and other agencies on environmental review and project delivery activities at the earliest practicable time to avoid delays and duplication of effort later in the process, head off potential conflicts, and ensure that planning and project development decisions reflect environmental values; and

(2) such cooperation should include the development of policies and the designation of staff that advise planning agencies or project sponsors of studies or other information foreseeably required for later Federal action and early consultation with appropriate State and local agencies and Indian tribes.

(b) Technical Assistance- If requested at any time by a State or local planning agency, the Secretary and other Federal agencies with relevant jurisdiction in the environmental review process, shall, to the extent practicable and appropriate, as determined by the agencies, provide technical assistance to the State or local planning agency on accomplishing the early coordination activities described in subsection (d).

(c) Memorandum of Agency Agreement- If requested at any time by a State or local planning agency, the lead agency, in consultation with other Federal agencies with relevant jurisdiction in the environmental review process, may establish memoranda of agreement with the project sponsor, State, and local governments and other appropriate entities to accomplish the early coordination activities described in subsection (d).

(d) Early Coordination Activities- Early coordination activities shall include, to the maximum extent practicable, the following:

(1) Technical assistance on identifying potential impacts and mitigation issues in an integrated fashion.

(2) The potential appropriateness of using planning products and decisions in later environmental reviews.

(3) The identification and elimination from detailed study in the environmental review process of the issues that are not significant or that have been covered by prior environmental reviews.

(4) The identification of other environmental review and consultation requirements so that the lead and cooperating agencies may prepare, as appropriate, other required analyses and studies concurrently with planning activities.

(5) The identification by agencies with jurisdiction over any permits related to the project of any and all relevant information that will reasonably be required for the project.

(6) The reduction of duplication between requirements under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and State and local planning and environmental review requirements, unless the agencies are specifically barred from doing so by applicable law.

(7) Timelines for the completion of agency actions during the planning and environmental review processes.

(8) Other appropriate factors.

SEC. 1313. ACCELERATED DECISIONMAKING.

Section 139(h) of title 23, United States Code, is amended by striking paragraph (4) and inserting the following:

‘(4) INTERIM DECISION ON ACHIEVING ACCELERATED DECISIONMAKING-

‘(A) IN GENERAL- Not later than 30 days after the close of the public comment period on a draft environmental impact statement, the Secretary may convene a meeting with the project sponsor, lead agency, resource agencies, and any relevant State agencies to ensure that all parties are on schedule to meet deadlines for decisions to be made regarding the project.

‘(B) DEADLINES- The deadlines referred to in subparagraph (A) shall be those established under subsection (g), or any other deadlines established by the lead agency, in consultation with the project sponsor and other relevant agencies.

‘(C) FAILURE TO ASSURE- If the relevant agencies cannot provide reasonable assurances that the deadlines described in subparagraph (B) will be met, the Secretary may initiate the issue resolution and referral process described under paragraph (5) and before the completion of the record of decision.

‘(5) ACCELERATED ISSUE RESOLUTION AND REFERRAL-

‘(A) AGENCY ISSUE RESOLUTION MEETING-

‘(i) IN GENERAL- A Federal agency of jurisdiction, project sponsor, or the Governor of a State in which a project is located may request an issue resolution meeting to be conducted by the lead agency.

‘(ii) ACTION BY LEAD AGENCY- The lead agency shall convene an issue resolution meeting under clause (i) with the relevant participating agencies and the project sponsor, including the Governor only if the meeting was requested by the Governor, to resolve issues that could--

‘(I) delay completion of the environmental review process; or

‘(II) result in denial of any approvals required for the project under applicable laws.

‘(iii) DATE- A meeting requested under this subparagraph shall be held by not later than 21 days after the date of receipt of the request for the meeting, unless the lead agency determines that there is good cause to extend the time for the meeting.

‘(iv) NOTIFICATION- On receipt of a request for a meeting under this subparagraph, the lead agency shall notify all relevant participating agencies of the request, including the issue to be resolved, and the date for the meeting.

‘(v) DISPUTES- If a relevant participating agency with jurisdiction over an approval required for a project under applicable law determines that the relevant information necessary to resolve the issue has not been obtained and could not have been obtained within a reasonable time, but the lead agency disagrees, the resolution of the dispute shall be forwarded to the heads of the relevant agencies for resolution.

‘(vi) CONVENTION BY LEAD AGENCY- A lead agency may convene an issue resolution meeting under this subsection at any time without the request of the Federal agency of jurisdiction, project sponsor, or the Governor of a State.

‘(B) ELEVATION OF ISSUE RESOLUTION-

‘(i) IN GENERAL- If issue resolution is not achieved by not later than 30 days after the date of a relevant meeting under subparagraph (A), the Secretary shall notify the lead agency, the heads of the relevant participating agencies, and the project sponsor (including the Governor only if the initial issue resolution meeting request came from the Governor) that an issue resolution meeting will be convened.

‘(ii) REQUIREMENTS- The Secretary shall identify the issues to be addressed at the meeting and convene the meeting not later than 30 days after the date of issuance of the notice.

‘(C) REFERRAL OF ISSUE RESOLUTION-

‘(i) REFERRAL TO COUNCIL ON ENVIRONMENTAL QUALITY-

‘(I) IN GENERAL- If resolution is not achieved by not later than 30 days after the date of an issue resolution meeting under subparagraph (B), the Secretary shall refer the matter to the Council on Environmental Quality.

‘(II) MEETING- Not later than 30 days after the date of receipt of a referral from the Secretary under subclause (I), the Council on Environmental Quality shall hold an issue resolution meeting with the lead agency, the heads of relevant participating agencies, and the project sponsor (including the Governor only if an initial request for an issue resolution meeting came from the Governor).

‘(ii) REFERRAL TO THE PRESIDENT- If a resolution is not achieved by not later than 30 days after the date of the meeting convened by the Council on Environmental Quality under clause (i)(II), the Secretary shall refer the matter directly to the President.

‘(6) FINANCIAL TRANSFER PROVISIONS-

‘(A) IN GENERAL- A Federal agency of jurisdiction over an approval required for a project under applicable laws shall complete any required approval on an expeditious basis using the shortest existing applicable process.

‘(B) FAILURE TO DECIDE-

‘(i) IN GENERAL- If an agency described in subparagraph (A) fails to render a decision under any Federal law relating to a project that requires the preparation of an environmental impact statement or environmental assessment, including the issuance or denial of a permit, license, or other approval by the date described in clause (ii), the agency shall transfer from the applicable office of the head of the agency, or equivalent office to which the authority for rendering the decision has been delegated by law, to the agency or division charged with rendering a decision regarding the application, by not later than 1 day after the applicable date under clause (ii), and once each week thereafter until a final decision is rendered, subject to subparagraph (C)--

‘(I) $20,000 for any project for which an annual financial plan under section 106(i) is required; or

‘(II) $10,000 for any other project requiring preparation of an environmental assessment or environmental impact statement.

‘(ii) DESCRIPTION OF DATE- The date referred to in clause (i) is the later of--

‘(I) the date that is 180 days after the date on which an application for the permit, license, or approval is complete; and

‘(II) the date that is 180 days after the date on which the Federal lead agency issues a decision on the project under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(C) LIMITATIONS-

‘(i) IN GENERAL- No transfer of funds under subparagraph (B) relating to an individual project shall exceed, in any fiscal year, an amount equal to 1 percent of the funds made available for the applicable agency office.

‘(ii) FAILURE TO DECIDE- The total amount transferred in a fiscal year as a result of a failure by an agency to make a decision by an applicable deadline shall not exceed an amount equal to 5 percent of the funds made available for the applicable agency office for that fiscal year.

‘(D) TREATMENT- The transferred funds shall only be available to the agency or division charged with rendering the decision as additional resources, pursuant to subparagraph (F).

‘(E) NO FAULT OF AGENCY- A transfer of funds under this paragraph shall not be made if the agency responsible for rendering the decision certifies that--

‘(i) the agency has not received necessary information or approvals from another entity, such as the project sponsor, in a manner that affects the ability of the agency to meet any requirements under State, local, or Federal law; or

‘(ii) significant new information or circumstances, including a major modification to an aspect of the project, requires additional analysis for the agency to make a decision on the project application.

‘(F) TREATMENT OF FUNDS-

‘(i) IN GENERAL- Funds transferred under this paragraph shall supplement resources available to the agency or division charged with making a decision for the purpose of expediting permit reviews.

‘(ii) AVAILABILITY- Funds transferred under this paragraph shall be available for use or obligation for the same period that the funds were originally authorized or appropriated, plus 1 additional fiscal year.

‘(iii) LIMITATION- The Federal agency with jurisdiction for the decision that has transferred the funds pursuant to this paragraph shall not reprogram funds to the office of the head of the agency, or equivalent office, to reimburse that office for the loss of the funds.

‘(G) AUDITS- In any fiscal year in which any Federal agency transfers funds pursuant to this paragraph, the Inspector General of that agency shall--

‘(i) conduct an audit to assess compliance with the requirements of this paragraph; and

‘(ii) not later than 120 days after the end of the fiscal year during which the transfer occurred, submit to the Committee on Environment and Public Works of the Senate and any other appropriate congressional committees a report describing the reasons why the transfers were levied, including allocations of resources.

‘(H) EFFECT OF PARAGRAPH- Nothing in this paragraph affects or limits the application of, or obligation to comply with, any Federal, State, local, or tribal law.

‘(I) AUTHORITY FOR INTRA-AGENCY TRANSFER OF FUNDS- The requirement provided under this paragraph for a Federal agency to transfer or reallocate funds of the Federal agency in accordance with subparagraph (B)(i)--

‘(i) shall be treated by the Federal agency as a requirement and authority consistent with any applicable original law establishing and authorizing the agency; but

‘(ii) does not provide to the Federal agency the authority to require or determine the intra-agency transfer or reallocation of funds that are provided to or are within any other Federal agency.

‘(7) EXPEDIENT DECISIONS AND REVIEWS- To ensure that Federal environmental decisions and reviews are expeditiously made--

‘(A) adequate resources made available under this title shall be devoted to ensuring that applicable environmental reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) are completed on an expeditious basis and that the shortest existing applicable process under that Act is implemented; and

‘(B) the President shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate, not less frequently than once every 120 days after the date of enactment of the MAP-21, a report on the status and progress of the following projects and activities funded under this title with respect to compliance with applicable requirements under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.):

‘(i) Projects and activities required to prepare an annual financial plan under section 106(i).

‘(ii) A sample of not less than 5 percent of the projects requiring preparation of an environmental impact statement or environmental assessment in each State.’.

SEC. 1314. ENVIRONMENTAL PROCEDURES INITIATIVE.

(a) Establishment- For grant programs under which funds are distributed by formula by the Department of Transportation, the Secretary shall establish an initiative to review and develop consistent procedures for environmental permitting and procurement requirements.

(b) Report- The Secretary shall publish the results of the initiative described in subsection (a) in an electronically accessible format.

SEC. 1315. ALTERNATIVE RELOCATION PAYMENT DEMONSTRATION PROGRAM.

(a) Payment Demonstration Program-

(1) IN GENERAL- Except as otherwise provided in this section, for the purpose of identifying improvements in the timeliness of providing relocation assistance to persons displaced by Federal or federally assisted programs and projects, the Secretary may allow not more than 5 States to participate in an alternative relocation payment demonstration program under which payments to displaced persons eligible for relocation assistance pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) (including implementing regulations), are calculated based on reasonable estimates and paid in advance of the physical displacement of the displaced person.

(2) TIMING OF PAYMENTS- Relocation assistance payments for projects carried out under an approved State demonstration program may be provided to the displaced person at the same time as payments of just compensation for real property acquired for the program or project of the State.

(3) COMBINING OF PAYMENTS- Payments for relocation and just compensation may be combined into a single unallocated amount.

(b) Criteria-

(1) IN GENERAL- After public notice and an opportunity to comment, the Secretary shall adopt criteria for carrying out the alternative relocation payment demonstration program.

(2) CONDITIONS-

(A) IN GENERAL- Conditions for State participation in the demonstration program shall include the conditions described in subparagraphs (B) through (E).

(B) MEMORANDUM OF AGREEMENT- A State wishing to participate in the demonstration program shall be required to enter into a memorandum of agreement with the Secretary that includes provisions relating to--

(i) the selection of projects or programs within the State to which the alternative relocation payment process will be applied;

(ii) program and project-level monitoring;

(iii) performance measurement;

(iv) reporting; and

(v) the circumstances under which the Secretary may terminate the demonstration program of the State before the end of the program term.

(C) TERM OF DEMONSTRATION PROGRAM- Except as provided in subparagraph (B)(v), the demonstration program of the State may continue for up to 3 years after the date on which the Secretary executes the memorandum of agreement.

(D) DISPLACED PERSONS-

(i) IN GENERAL- Displaced persons affected by a project included in the demonstration program of the State shall be informed in writing in a format that is clear and easily understandable that the relocation payments that the displaced persons receive under the demonstration program may be higher or lower than the amount that the displaced persons would receive under the standard relocation assistance process.

(ii) ALTERNATIVE PROCESS- Displaced persons shall be informed--

(I) of the right of the displaced persons not to participate in the demonstration program; and

(II) that the alternative relocation payment process can be used only if the displaced person agrees in writing.

(iii) ASSISTANCE- The displacing agency shall provide any displaced person who elects not to participate in the demonstration program with relocation assistance in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) (including implementing regulations).

(E) OTHER DISPLACEMENTS-

(i) IN GENERAL- If other Federal agencies plan displacements in or adjacent to a demonstration program project area within the same time period as the project acquisition and relocation actions of the demonstration program, the Secretary shall adopt measures to protect against inconsistent treatment of displaced persons.

(ii) INCLUSION- Measures described in clause (i) may include a determination that the demonstration program authority may not be used on a particular project.

(c) Report-

(1) IN GENERAL- The Secretary shall submit to Congress--

(A) at least every 18 months after the date of enactment of this Act, a report on the progress and results of the demonstration program; and

(B) not later than 1 year after all State demonstration programs have ended, a final report.

(2) REQUIREMENTS- The final report shall include an evaluation by the Secretary of the merits of the alternative relocation payment demonstration program, including the effects of the demonstration program on--

(A) displaced persons and the protections afforded to displaced persons by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.);

(B) the efficiency of the delivery of Federal-aid highway projects and overall effects on the Federal-aid highway program; and

(C) the achievement of the purposes of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

(d) Limitation- The authority of this section may be used only on projects funded under title 23, United States Code, in cases in which the funds are administered by the Federal Highway Administration.

(e) Authority- The authority of the Secretary to approve an alternate relocation payment demonstration program for a State terminates on the date that is 3 years after the date of enactment of this Act

SEC. 1316. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY.

(a) Completion Time Assessments and Reports-

(1) IN GENERAL- For projects funded under title 23, United States Code, the Secretary shall compare--

(A)(i) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated after calendar year 2005; to

(ii) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated during a period prior to calendar year 2005; and

(B)(i) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated during the period beginning on January 1, 2005, and ending on the date of enactment of this Act; to

(ii) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated after the date of enactment of this Act.

(2) REPORT- The Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report--

(A) not later than 1 year after the date of enactment of this Act that--

(i) describes the results of the review conducted under paragraph (1)(A); and

(ii) identifies any change in the timing for completions, including the reasons for any such change and the reasons for delays in excess of 5 years; and

(B) not later than 5 years after the date of enactment of this Act that--

(i) describes the results of the review conducted under paragraph (1)(B); and

(ii) identifies any change in the timing for completions, including the reasons for any such change and the reasons for delays in excess of 5 years.

(b) Additional Report- Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on the types and justification for the additional categorical exclusions granted under the authority provided under sections 1309 and 1310.

(c) GAO Report- The Comptroller General of the United States shall--

(1) assess the reforms carried out under sections 1301 through 1315 (including the amendments made by those sections); and

(2) not later than 5 years after the date of enactment of this Act, submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report that describes the results of the assessment.

(d) Inspector General Report- The Inspector General of the Department of Transportation shall--

(1) assess the reforms carried out under sections 1301 through 1315 (including the amendments made by those sections); and

(2) submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate--

(A) not later than 2 years after the date of enactment of this Act, an initial report of the findings of the Inspector General; and

(B) not later than 4 years after the date of enactment of this Act, a final report of the findings.

Subtitle D--Highway Safety

SEC. 1401. JASON’S LAW.

(a) In General- It is the sense of Congress that it is a national priority to address projects under this section for the shortage of long-term parking for commercial motor vehicles on the National Highway System to improve the safety of motorized and nonmotorized users and for commercial motor vehicle operators.

(b) Eligible Projects- Eligible projects under this section are those that--

(1) serve the National Highway System; and

(2) may include the following:

(A) Constructing safety rest areas (as defined in section 120(c) of title 23, United States Code) that include parking for commercial motor vehicles.

(B) Constructing commercial motor vehicle parking facilities adjacent to commercial truck stops and travel plazas.

(C) Opening existing facilities to commercial motor vehicle parking, including inspection and weigh stations and park-and-ride facilities.

(D) Promoting the availability of publicly or privately provided commercial motor vehicle parking on the National Highway System using intelligent transportation systems and other means.

(E) Constructing turnouts along the National Highway System for commercial motor vehicles.

(F) Making capital improvements to public commercial motor vehicle parking facilities currently closed on a seasonal basis to allow the facilities to remain open year-round.

(G) Improving the geometric design of interchanges on the National Highway System to improve access to commercial motor vehicle parking facilities.

(c) Survey and Comparative Assessment-

(1) IN GENERAL- The Secretary, in consultation with relevant State motor carrier safety personnel, shall conduct a survey regarding the availability of parking facilities within each State--

(A) to evaluate the capability of the State to provide adequate parking and rest facilities for motor carriers engaged in interstate motor carrier service;

(B) to assess the volume of motor carrier traffic through the State; and

(C) to develop a system of metrics to measure the adequacy of parking facilities in the State.

(2) RESULTS- The results of the survey under paragraph (1) shall be made available to the public on the website of the Department of Transportation.

(3) PERIODIC UPDATES- The Secretary shall periodically update the survey under this subsection.

(d) Treatment of Projects- Notwithstanding any other provision of law, projects funded through the authority provided under this section shall be treated as projects on a Federal-aid highway under chapter 1 of title 23, United States Code.

SEC. 1402. OPEN CONTAINER REQUIREMENTS.

Section 154(c) of title 23, United States Code, is amended--

(1) by striking paragraph (2) and inserting the following:

‘(2) FISCAL YEAR 2012 AND THEREAFTER-

‘(A) RESERVATION OF FUNDS- On October 1, 2011, and each October 1 thereafter, if a State has not enacted or is not enforcing an open container law described in subsection (b), the Secretary shall reserve an amount equal to 2.5 percent of the funds to be apportioned to the State on that date under each of paragraphs (1) and (2) of section 104(b) until the State certifies to the Secretary the means by which the State will use those reserved funds in accordance with subparagraphs (A) and (B) of paragraph (1) and paragraph (3).

‘(B) TRANSFER OF FUNDS- As soon as practicable after the date of receipt of a certification from a State under subparagraph (A), the Secretary shall--

‘(i) transfer the reserved funds identified by the State for use as described in subparagraphs (A) and (B) of paragraph (1) to the apportionment of the State under section 402; and

‘(ii) release the reserved funds identified by the State as described in paragraph (3).’;

(2) by striking paragraph (3) and inserting the following:

‘(3) USE FOR HIGHWAY SAFETY IMPROVEMENT PROGRAM-

‘(A) IN GENERAL- A State may elect to use all or a portion of the funds transferred under paragraph (2) for activities eligible under section 148.

‘(B) STATE DEPARTMENTS OF TRANSPORTATION- If the State makes an election under subparagraph (A), the funds shall be transferred to the department of transportation of the State, which shall be responsible for the administration of the funds.’; and

(3) by striking paragraph (5) and inserting the following:

‘(5) DERIVATION OF AMOUNT TO BE TRANSFERRED- The amount to be transferred under paragraph (2) may be derived from the following:

‘(A) The apportionment of the State under section 104(b)(l).

‘(B) The apportionment of the State under section 104(b)(2).’.

SEC. 1403. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED OR DRIVING UNDER THE INFLUENCE.

(a) Definitions- Section 164(a) of title 23, United States Code, is amended--

(1) by striking paragraph (3);

(2) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively; and

(3) in paragraph (4) (as so redesignated) by striking subparagraph (A) and inserting the following:

‘(A) receive--

‘(i) a suspension of all driving privileges for not less than 1 year; or

‘(ii) a suspension of unlimited driving privileges for 1 year, allowing for the reinstatement of limited driving privileges subject to restrictions and limited exemptions as established by State law, if an ignition interlock device is installed for not less than 1 year on each of the motor vehicles owned or operated, or both, by the individual;’.

(b) Transfer of Funds- Section 164(b) of title 23, United States Code, is amended--

(1) by striking paragraph (2) and inserting the following:

‘(2) FISCAL YEAR 2012 AND THEREAFTER-

‘(A) RESERVATION OF FUNDS- On October 1, 2011, and each October 1 thereafter, if a State has not enacted or is not enforcing a repeat intoxicated driver law, the Secretary shall reserve an amount equal to 2.5 percent of the funds to be apportioned to the State on that date under each of paragraphs (1) and (2) of section 104(b) until the State certifies to the Secretary the means by which the States will use those reserved funds among the uses authorized under subparagraphs (A) and (B) of paragraph (1), and paragraph (3).

‘(B) TRANSFER OF FUNDS- As soon as practicable after the date of receipt of a certification from a State under subparagraph (A), the Secretary shall--

‘(i) transfer the reserved funds identified by the State for use as described in subparagraphs (A) and (B) of paragraph (1) to the apportionment of the State under section 402; and

‘(ii) release the reserved funds identified by the State as described in paragraph (3).’;

(2) by striking paragraph (3) and inserting the following:

‘(3) USE FOR HIGHWAY SAFETY IMPROVEMENT PROGRAM-

‘(A) IN GENERAL- A State may elect to use all or a portion of the funds transferred under paragraph (2) for activities eligible under section 148.

‘(B) STATE DEPARTMENTS OF TRANSPORTATION- If the State makes an election under subparagraph (A), the funds shall be transferred to the department of transportation of the State, which shall be responsible for the administration of the funds.’; and

(3) by striking paragraph (5) and inserting the following:

‘(5) DERIVATION OF AMOUNT TO BE TRANSFERRED- The amount to be transferred under paragraph (2) may be derived from the following:

‘(A) The apportionment of the State under section 104(b)(1).

‘(B) The apportionment of the State under section 104(b)(2).’.

SEC. 1404. ADJUSTMENTS TO PENALTY PROVISIONS.

(a) Vehicle Weight Limitations- Section 127(a)(1) of title 23, United States Code, is amended by striking ‘No funds shall be apportioned in any fiscal year under section 104(b)(1) of this title to any State which’ and inserting ‘The Secretary shall withhold 50 percent of the apportionment of a State under section 104(b)(1) in any fiscal year in which the State’.

(b) Control of Junkyards- Section 136 of title 23, United States Code, is amended--

(1) in subsection (b), in the first sentence--

(A) by striking ‘10 per centum’ and inserting ‘7 percent’; and

(B) by striking ‘section 104 of this title’ and inserting ‘paragraphs (1) through (5) of section 104(b)’; and

(2) by adding at the end the following:

‘(n) For purposes of this section, the terms ‘primary system’ and ‘Federal-aid primary system’ mean any highway that is on the National Highway System, which includes the Interstate Highway System.’.

(c) Enforcement of Vehicle Size and Weight Laws- Section 141(b)(2) of title 23, United States Code, is amended--

(1) by striking ‘10 per centum’ and inserting ‘7 percent’; and

(2) by striking ‘section 104 of this title’ and inserting ‘paragraphs (1) through (5) of section 104(b)’.

(d) Proof of Payment of the Heavy Vehicle Use Tax- Section 141(c) of title 23, United States Code, is amended--

(1) by striking ‘section 104(b)(4)’ each place it appears and inserting ‘section 104(b)(1)’; and

(2) in the first sentence by striking ‘25 per centum’ and inserting ‘ 8 percent’.

(e) Use of Safety Belts- Section 153(h) of title 23, United States Code, is amended--

(1) by striking paragraph (1);

(2) by redesignating paragraph (2) as paragraph (1);

(3) in paragraph (1) (as so redesignated)--

(A) by striking the paragraph heading and inserting ‘PRIOR TO FISCAL YEAR 2012’; and

(B) by inserting ‘and before October 1, 2011,’ after ‘September 30, 1994,’; and

(4) by inserting after paragraph (1) (as so redesignated) the following:

‘(2) FISCAL YEAR 2012 AND THEREAFTER- If, at any time in a fiscal year beginning after September 30, 2011, a State does not have in effect a law described in subsection (a)(2), the Secretary shall transfer an amount equal to 2 percent of the funds apportioned to the State for the succeeding fiscal year under each of paragraphs (1) through (3) of section 104(b) to the apportionment of the State under section 402.’.

(f) National Minimum Drinking Age- Section 158(a)(1) of title 23, United States Code, is amended--

(1) by striking ‘The Secretary’ and inserting the following:

‘(A) FISCAL YEARS BEFORE 2012- The Secretary’; and

(2) by adding at the end the following:

‘(B) FISCAL YEAR 2012 AND THEREAFTER- For fiscal year 2012 and each fiscal year thereafter, the amount to be withheld under this section shall be an amount equal to 8 percent of the amount apportioned to the noncompliant State, as described in subparagraph (A), under paragraphs (1) and (2) of section 104(b).’.

(g) Drug Offenders- Section 159 of title 23, United States Code, is amended--

(1) in subsection (a)--

(A) by striking paragraph (1);

(B) by redesignating paragraph (2) as paragraph (1);

(C) in paragraph (1) (as so redesignated) by striking ‘(including any amounts withheld under paragraph (1))’; and

(D) by inserting after paragraph (1) (as so redesignated) the following:

‘(2) FISCAL YEAR 2012 AND THEREAFTER- The Secretary shall withhold an amount equal to 8 percent of the amount required to be apportioned to any State under each of paragraphs (1) and (2) of section 104(b) on the first day of each fiscal year beginning after September 30, 2011, if the State fails to meet the requirements of paragraph (3) on the first day of the fiscal year.’; and

(2) by striking subsection (b) and inserting the following:

‘(b) Effect of Noncompliance- No funds withheld under this section from apportionments to any State shall be available for apportionment to that State.’.

(h) Zero Tolerance Blood Alcohol Concentration for Minors- Section 161(a) of title 23, United States Code, is amended--

(1) by striking paragraph (1);

(2) by redesignating paragraph (2) as paragraph (1);

(3) in paragraph (1) (as so redesignated)--

(A) by striking the paragraph heading and inserting ‘PRIOR TO FISCAL YEAR 2012’; and

(B) by inserting ‘through fiscal year 2011’ after ‘each fiscal year thereafter’; and

(4) by inserting after paragraph (1) (as so redesignated) the following:

‘(2) FISCAL YEAR 2012 AND THEREAFTER- The Secretary shall withhold an amount equal to 8 percent of the amount required to be apportioned to any State under each of paragraphs (1) and (2) of section 104(b) on October 1, 2011, and on October 1 of each fiscal year thereafter, if the State does not meet the requirement of paragraph (3) on that date.’.

(i) Operation of Motor Vehicles by Intoxicated Persons- Section 163(e) of title 23, United States Code, is amended by striking paragraphs (1) and (2) and inserting the following:

‘(1) FISCAL YEARS 2007 THROUGH 2011- On October 1, 2006, and October 1 of each fiscal year thereafter through fiscal year 2011, if a State has not enacted or is not enforcing a law described in subsection (a), the Secretary shall withhold an amount equal to 8 percent of the amounts to be apportioned to the State on that date under each of paragraphs (1), (3), and (4) of section 104(b).

‘(2) FISCAL YEAR 2012 AND THEREAFTER- On October 1, 2011, and October 1 of each fiscal year thereafter, if a State has not enacted or is not enforcing a law described in subsection (a), the Secretary shall withhold an amount equal to 6 percent of the amounts to be apportioned to the State on that date under each of paragraphs (1) and (2) of section 104(b).’.

(j) Commercial Driver’s License- Section 31314 of title 49, United States Code, is amended--

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following:

‘(c) Penalties Imposed in Fiscal Year 2012 and Thereafter- Effective beginning on October 1, 2011--

‘(1) the penalty for the first instance of noncompliance by a State under this section shall be not more than an amount equal to 4 percent of funds required to be apportioned to the noncompliant State under paragraphs (1) and (2) of section 104(b) of title 23; and

‘(2) the penalty for subsequent instances of noncompliance shall be not more than an amount equal to 8 percent of funds required to be apportioned to the noncompliant State under paragraphs (1) and (2) of section 104(b) of title 23.’.

SEC. 1405. HIGHWAY WORKER SAFETY.

Not later than 60 days after the date of enactment of this Act, the Secretary shall modify section 630.1108(a) of title 23, Code of Federal Regulations (as in effect on the date of enactment of this Act), to ensure that--

(1) at a minimum, positive protective measures are used to separate workers on highway construction projects from motorized traffic in all work zones conducted under traffic in areas that offer workers no means of escape (such as tunnels and bridges), unless an engineering study determines otherwise;

(2) temporary longitudinal traffic barriers are used to protect workers on highway construction projects in long-duration stationary work zones when the project design speed is anticipated to be high and the nature of the work requires workers to be within 1 lane-width from the edge of a live travel lane, unless--

(A) an analysis by the project sponsor determines otherwise; or

(B) the project is outside of an urbanized area and the annual average daily traffic load of the applicable road is less than 100 vehicles per hour; and

(3) when positive protective devices are necessary for highway construction projects, those devices are paid for on a unit-pay basis, unless doing so would create a conflict with innovative contracting approaches, such as design-build or some performance-based contracts under which the contractor is paid to assume a certain risk allocation and payment is generally made on a lump-sum basis.

Subtitle E--Miscellaneous

SEC. 1501. PROGRAM EFFICIENCIES.

The first sentence of section 102(b) of title 23, United States Code, is amended by striking ‘made available for such engineering’ and inserting ‘reimbursed for the preliminary engineering’.

SEC. 1502. PROJECT APPROVAL AND OVERSIGHT.

Section 106 of title 23, United States Code, is amended--

(1) in subsection (a)(2) by inserting ‘recipient’ before ‘formalizing’;

(2) in subsection (c)--

(A) in paragraph (1)--

(i) in the heading, by striking ‘NON-INTERSTATE’; and

(ii) by striking ‘but not on the Interstate System’; and

(B) by striking paragraph (4) and inserting the following:

‘(4) LIMITATION ON INTERSTATE PROJECTS-

‘(A) IN GENERAL- The Secretary shall not assign any responsibilities to a State for projects the Secretary determines to be in a high risk category, as defined under subparagraph (B).

‘(B) HIGH RISK CATEGORIES- The Secretary may define the high risk categories under this subparagraph on a national basis, a State-by-State basis, or a national and State-by-State basis, as determined to be appropriate by the Secretary.’;

(3) in subsection (e)--

(A) in paragraph (1)--

(i) in subparagraph (A)--

(I) in the matter preceding clause (i)--

(aa) by striking ‘concept’ and inserting ‘planning’; and

(bb) by striking ‘multidisciplined’ and inserting ‘multidisciplinary’; and

(II) by striking clause (i) and inserting the following:

‘(i) providing the needed functions and achieving the established commitments (including environmental, community, and agency commitments) safely, reliably, and at the lowest overall lifecycle cost;’; and

(ii) in subparagraph (B) by striking clause (ii) and inserting the following:

‘(ii) refining or redesigning, as appropriate, the project using different technologies, materials, or methods so as to accomplish the purpose, functions, and established commitments (including environmental, community, and agency commitments) of the project.’;

(B) in paragraph (2)--

(i) in the matter preceding subparagraph (A) by striking ‘or other cost-reduction analysis’;

(ii) in subparagraph (A) by striking ‘Federal-aid system’ and inserting ‘National Highway System receiving Federal assistance’; and

(iii) in subparagraph (B) by inserting ‘on the National Highway System receiving Federal assistance’ after ‘a bridge project’; and

(C) by striking paragraph (4) and inserting the following:

‘(4) REQUIREMENTS-

‘(A) VALUE ENGINEERING PROGRAM- The State shall develop and carry out a value engineering program that--

‘(i) establishes and documents value engineering program policies and procedures;

‘(ii) ensures that the required value engineering analysis is conducted before completing the final design of a project;

‘(iii) ensures that the value engineering analysis that is conducted, and the recommendations developed and implemented for each project, are documented in a final value engineering report; and

‘(iv) monitors, evaluates, and annually submits to the Secretary a report that describes the results of the value analyses that are conducted and the recommendations implemented for each of the projects described in paragraph (2) that are completed in the State.

‘(B) BRIDGE PROJECTS- The value engineering analysis for a bridge project under paragraph (2) shall--

‘(i) include bridge superstructure and substructure requirements based on construction material; and

‘(ii) be evaluated by the State--

‘(I) on engineering and economic bases, taking into consideration acceptable designs for bridges; and

‘(II) using an analysis of lifecycle costs and duration of project construction.’;

(4) in subsection (g)(4) by adding at the end the following:

‘(C) FUNDING-

‘(i) IN GENERAL- Subject to project approval by the Secretary, a State may obligate funds apportioned to the State under section 104(b)(2) for carrying out the responsibilities of the State under subparagraph (A).

‘(ii) ELIGIBLE ACTIVITIES- Activities eligible for assistance under this subparagraph include--

‘(I) State administration of subgrants; and

‘(II) State oversight of subrecipients.

‘(iii) ANNUAL WORK PLAN- To receive the funding flexibility made available under this subparagraph, the State shall submit to the Secretary an annual work plan identifying activities to be carried out under this subparagraph during the applicable year.

‘(iv) FEDERAL SHARE- The Federal share of the cost of activities carried out under this subparagraph shall be 100 percent.’; and

(5) in subsection (h)--

(A) in paragraph (1)(B) by inserting ‘, including a phasing plan when applicable’ after ‘financial plan’; and

(B) by striking paragraph (3) and inserting the following:

‘(3) FINANCIAL PLAN- A financial plan--

‘(A) shall be based on detailed estimates of the cost to complete the project;

‘(B) shall provide for the annual submission of updates to the Secretary that are based on reasonable assumptions, as determined by the Secretary, of future increases in the cost to complete the project; and

‘(C) may include a phasing plan that identifies fundable incremental improvements or phases that will address the purpose and the need of the project in the short term in the event there are insufficient financial resources to complete the entire project. If a phasing plan is adopted for a project pursuant to this section, the project shall be deemed to satisfy the fiscal constraint requirements in the statewide and metropolitan planning requirements in sections 134 and 135.’.

SEC. 1503. STANDARDS.

(a) Practical Design- Section 109 of title 23, United States Code, is amended--

(1) in subsection (a)--

(A) in paragraph (1) by striking ‘and’ at the end;

(B) in paragraph (2) by striking the period at the end and inserting ‘; and’; and

(C) by adding at the end the following:

‘(3) utilize, when appropriate, practical design solutions, as defined in this section, to ensure that transportation needs are met and that funds available for transportation projects are used efficiently.’;

(2) in subsection (c)--

(A) in paragraph (1), in the matter preceding subparagraph (A)--

(i) by striking ‘, reconstruction, resurfacing (except for maintenance resurfacing), restoration, or rehabilitation’ and inserting ‘or reconstruction’; and

(ii) by striking ‘may take into account’ and inserting ‘shall consider’;

(B) in paragraph (2)--

(i) in the first sentence of the matter preceding subparagraph (A) by striking ‘may’ and inserting ‘shall’;

(ii) in subparagraph (C) by striking ‘and’ at the end;

(iii) by redesignating subparagraph (D) as subparagraph (F); and

(iv) by inserting after subparagraph (C) the following:

‘(D) the publication entitled ‘Highway Safety Manual’ of the American Association of State Highway and Transportation Officials;

‘(E) the publication entitled ‘A Guide for Achieving Flexibility in Highway Design, 1st Edition’, published by the American Association of State Highway and Transportation Officials; and’;

(3) in subsection (f) by inserting ‘pedestrian walkways,’ after ‘bikeways,’;

(4) in subsection (m) by inserting ‘, safe, and continuous’ after ‘for a reasonable’;

(5) in subsection (q) by striking ‘consistent with the operative safety management system established in accordance with section 303 or in accordance with’ inserting ‘that is in accordance with a State’s strategic highway safety plan and included on’; and

(6) by adding at the end the following:

‘(r) Definition- In this section, the term ‘practical design solution’ means a collaborative interdisciplinary approach that results in a transportation project that fits its physical setting, preserves safety, and balances costs with the necessary scope and project delivery needs of the project, as well as with scenic, aesthetic, historic, and environmental resources.’.

(b) Additional Standards- Section 109 of title 23, United States Code (as amended by subsection (a)(6)), is amended by adding at the end the following:

‘(s) Pavement Markings- The Secretary shall not approve any pavement markings project that includes the use of glass beads containing more than 200 parts per million of arsenic or lead, as determined in accordance with Environmental Protection Agency testing methods 3052, 6010B, or 6010C.’.

SEC. 1504. CONSTRUCTION.

Section 114 of title 23, United States Code, is amended--

(1) in subsection (b)--

(A) by striking paragraph (1) and inserting the following:

‘(1) LIMITATION ON CONVICT LABOR- Convict labor shall not be used in construction of Federal-aid highways or portions of Federal-aid highways unless the labor is performed by convicts who are on parole, supervised release, or probation.’; and

(B) in paragraph (3) by inserting ‘in existence during that period’ after ‘located on a Federal-aid system’; and

(2) in subsection (c)--

(A) by striking paragraph (1) and inserting the following:

‘(1) IN GENERAL- The Secretary shall ensure that a worker who is employed on a remote project for the construction of a Federal-aid highway or portion of a Federal-aid highway in the State of Alaska and who is not a domiciled resident of the locality shall receive meals and lodging.’; and

(B) in paragraph (3)(C) by striking ‘highway or portion of a highway located on a Federal-aid system’ and inserting ‘Federal-aid highway or portion of a Federal-aid highway’.

SEC. 1505. MAINTENANCE.

Section 116 of title 23, United States Code, is amended--

(1) in subsection (a)--

(A) in the first sentence, by inserting ‘or other direct recipient’ before ‘to maintain’; and

(B) by striking the second sentence;

(2) by striking subsection (b) and inserting the following:

‘(b) Agreement- In any State in which the State transportation department or other direct recipient is without legal authority to maintain a project described in subsection (a), the transportation department or direct recipient shall enter into a formal agreement with the appropriate officials of the county or municipality in which the project is located providing for the maintenance of the project.’; and

(3) in the first sentence of subsection (c) by inserting ‘or other direct recipient’ after ‘State transportation department’.

SEC. 1506. FEDERAL SHARE PAYABLE.

Section 120 of title 23, United States Code, is amended--

(1) in the first sentence of subsection (c)(1)--

(A) by inserting ‘maintaining minimum levels of retroreflectivity of highway signs or pavement markings,’ after ‘traffic control signalization,’;

(B) by inserting ‘shoulder and centerline rumble strips and stripes,’ after ‘pavement marking,’; and

(C) by striking ‘Federal-aid systems’ and inserting ‘Federal-aid programs’;

(2) by striking subsection (e) and inserting the following:

‘(e) Emergency Relief- The Federal share payable for any repair or reconstruction provided for by funds made available under section 125 for any project on a Federal-aid highway, including the Interstate System, shall not exceed the Federal share payable on a project on the system as provided in subsections (a) and (b), except that--

‘(1) the Federal share payable for eligible emergency repairs to minimize damage, protect facilities, or restore essential traffic accomplished within 180 days after the actual occurrence of the natural disaster or catastrophic failure may amount to 100 percent of the cost of the repairs;

‘(2) the Federal share payable for any repair or reconstruction of Federal land transportation facilities, Federal land access transportation facilities, and tribal transportation facilities may amount to 100 percent of the cost of the repair or reconstruction;

‘(3) the Secretary shall extend the time period in paragraph (1) taking into consideration any delay in the ability of the State to access damaged facilities to evaluate damage and the cost of repair; and

‘(4) the Federal share payable for eligible permanent repairs to restore damaged facilities to predisaster condition may amount to 100 percent of the cost of the repairs if the eligible expenses incurred by the State due to natural disasters or catastrophic failures in a Federal fiscal year exceeds the annual apportionment of the State under section 104 for the fiscal year in which the disasters or failures occurred.’;

(3) by striking subsection (g) and redesignating subsections (h) through (l) as subsections (g) through (k), respectively;

(4) in subsection (i)(1)(A) (as redesignated by paragraph (3)) by striking ‘and the Appalachian development highway system program under section 14501 of title 40’; and

(5) by striking subsections (j) and (k) (as redesignated by paragraph (3)) and inserting the following:

‘(j) Use of Federal Agency Funds- Notwithstanding any other provision of law, any Federal funds other than those made available under this title and title 49, United States Code, may be used to pay the non-Federal share of the cost of any transportation project that is within, adjacent to, or provides access to Federal land, the Federal share of which is funded under this title or chapter 53 of title 49.

‘(k) Use of Federal Land and Tribal Transportation Funds- Notwithstanding any other provision of law, the funds authorized to be appropriated to carry out the tribal transportation program under section 202 and the Federal lands transportation program under section 203 may be used to pay the non-Federal share of the cost of any project that is funded under this title or chapter 53 of title 49 and that provides access to or within Federal or tribal land.’.

SEC. 1507. TRANSFERABILITY OF FEDERAL-AID HIGHWAY FUNDS.

(a) In General- Section 126 of title 23, United States Code, is amended to read as follows:

‘Sec. 126. Transferability of Federal-aid highway funds

‘(a) In General- Notwithstanding any other provision of law, subject to subsection (b), a State may transfer from an apportionment under section 104(b) not to exceed 20 percent of the amount apportioned for the fiscal year to any other apportionment of the State under that section.

‘(b) Application to Certain Set-asides- Funds that are subject to sections 104(d) and 133(d) shall not be transferred under this section. The maximum amount that a State may transfer under this section of the State’s set-aside under section 149(l) for a fiscal year may not exceed 25 percent of (1) the amount of such set-aside, less (2) the amount of the State’s set-aside under section 133(d)(2), as in effect on the day before the date of enactment of the MAP-21, for fiscal year 1997.’.

(b) Conforming Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 126 and inserting the following:

‘126. Transferability of Federal-aid highway funds.’.

SEC. 1508. SPECIAL PERMITS DURING PERIODS OF NATIONAL EMERGENCY.

Section 127 of title 23, United States Code, is amended by inserting at the end the following:

‘(i) Special Permits During Periods of National Emergency-

‘(1) IN GENERAL- Notwithstanding any other provision of this section, a State may issue special permits during an emergency to overweight vehicles and loads that can easily be dismantled or divided if--

‘(A) the President has declared the emergency to be a major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.);

‘(B) the permits are issued in accordance with State law; and

‘(C) the permits are issued exclusively to vehicles and loads that are delivering relief supplies.

‘(2) EXPIRATION- A permit issued under paragraph (1) shall expire not later than 120 days after the date of the declaration of emergency under subparagraph (A) of that paragraph.’.

SEC. 1509. ELECTRIC VEHICLE CHARGING STATIONS.

(a) Fringe and Corridor Parking Facilities- Section 137 of title 23, United States Code, is amended--

(1) in subsection (a) by inserting after the second sentence the following: ‘The addition of electric vehicle charging stations to new or previously funded parking facilities shall be eligible for funding under this section.’; and

(2) in subsection (f)(1)--

(A) by striking ‘104(b)(4)’ and inserting ‘104(b)(1)’; and

(B) by inserting ‘including the addition of electric vehicle charging stations,’ after ‘new facilities,’.

(b) Public Transportation- Section 142(a)(1) of title 23, United States Code, is amended by inserting ‘(which may include electric vehicle charging stations)’ after ‘corridor parking facilities’.

SEC. 1510. HOV FACILITIES.

Section 166 of title 23, United States Code, is amended--

(1) in subsection (b)(5)--

(A) in subparagraph (A) by striking ‘Before September 30, 2009, the’ and inserting ‘The’; and

(B) in subparagraph (B) by striking ‘Before September 30, 2009, the’ and inserting ‘The’; and

(2) in subsection (d)(1)--

(A) in the matter preceding subparagraph (A)--

(i) by striking ‘in a fiscal year shall certify’ and inserting ‘shall submit to the Secretary a report demonstrating that the facility is not already degraded, and that the presence of the vehicles will not cause the facility to become degraded, and certify’; and

(ii) by striking ‘in the fiscal year’;

(B) in subparagraph (A) by inserting ‘and submitting to the Secretary annual reports of those impacts’ after ‘adjacent highways’;

(C) in subparagraph (C) by striking ‘if the presence of the vehicles has degraded the operation of the facility’ and inserting ‘whenever the operation of the facility is degraded’; and

(D) by adding at the end the following:

‘(D) MAINTENANCE OF OPERATING PERFORMANCE- A facility that has become degraded shall be brought back into compliance with the minimum average operating speed performance standard by not later than 180 days after the date on which the degradation is identified through changes to operation, including the following:

‘(i) Increase the occupancy requirement for HOVs.

‘(ii) Increase the toll charged for vehicles allowed under subsection (b) to reduce demand.

‘(iii) Charge tolls to any class of vehicle allowed under subsection (b) that is not already subject to a toll.

‘(iv) Limit or discontinue allowing vehicles under subsection (b).

‘(v) Increase the available capacity of the HOV facility.

‘(E) COMPLIANCE- If the State fails to bring a facility into compliance under subparagraph (D), the Secretary shall subject the State to appropriate program sanctions under section 1.36 of title 23, Code of Federal Regulations (or successor regulations), until the performance is no longer degraded.’.

SEC. 1511. CONSTRUCTION EQUIPMENT AND VEHICLES.

(a) In General- Chapter 3 of title 23, United States Code, is amended by adding at the end the following:

‘SEC. 330. CONSTRUCTION EQUIPMENT AND VEHICLES.

‘(a) In General- In accordance with the obligation process established pursuant to section 149(j)(4), a State shall expend amounts required to be obligated for this section to install diesel emission control technology on covered equipment, with an engine that does not meet current model year new engine standards for particulate matter for the applicable engine power group issued by the Environmental Protection Agency, on a covered highway construction project within a PM2.5 nonattainment or maintenance area. Covered equipment repowered or retrofit with diesel exhaust control technology installed during the 6-year period ending on the date on which the prime contract was awarded for the covered highway construction project and equipment that meets the Environmental Protection Agency Tier 4 emission standards may be exempt from the requirements of this section.

‘(b) Definitions- In this section, the following definitions apply:

‘(1) COVERED EQUIPMENT- The term ‘covered equipment’ means any nonroad diesel equipment or on-road diesel equipment that is operated on a covered highway construction project for not less than 80 hours over the life of the project.

‘(2) COVERED HIGHWAY CONSTRUCTION PROJECT-

‘(A) IN GENERAL- The term ‘covered highway construction project’ means a highway construction project carried out under this title or any other Federal law which is funded in whole or in part with Federal funds.

‘(B) EXCLUSIONS- Any project with a total budgeted cost not to exceed $5,000,000 may be excluded from the requirements of this section by an applicable State or metropolitan planning organization.

‘(3) DIESEL EMISSION CONTROL TECHNOLOGY- The term ‘diesel emission control technology’ means a technology that--

‘(A) is--

‘(i) a diesel exhaust control technology;

‘(ii) a diesel engine upgrade;

‘(iii) a diesel engine repower;

‘(iv) an idle reduction control technology; or

‘(v) any combination of the technologies listed in clauses (i) through (iv);

‘(B) reduces particulate matter emission from covered equipment by--

‘(i) not less than 85 percent control of any emission of particulate matter; or

‘(ii) the maximum achievable reduction of any emission of particulate matter, taking cost and safety into account; and

‘(C) is installed on and operated with the covered equipment while the equipment is operated on a covered highway construction project and that remains operational on the covered equipment for the useful life of the control technology or equipment.

‘(4) ELIGIBLE ENTITY- The term ‘eligible entity’ means an entity (including a subcontractor of the entity) that has entered into a prime contract or agreement with a State to carry out a covered highway construction project.

‘(5) NONROAD DIESEL EQUIPMENT-

‘(A) IN GENERAL- The term ‘nonroad diesel equipment’ means a vehicle, including covered equipment, that is--

‘(i) powered by a nonroad diesel engine of not less than 50 horsepower; and

‘(ii) not intended for highway use.

‘(B) INCLUSIONS- The term ‘nonroad diesel equipment’ includes a backhoe, bulldozer, compressor, crane, excavator, generator, and similar equipment.

‘(C) EXCLUSIONS- The term ‘nonroad diesel equipment’ does not include a locomotive or marine vessel.

‘(6) ON-ROAD DIESEL EQUIPMENT- The term ‘on-road diesel equipment’ means any self-propelled vehicle that--

‘(A) operates on diesel fuel;

‘(B) is designed to transport persons or property on a street or highway; and

‘(C) has a gross vehicle weight rating of at least 14,000 pounds.

‘(7) PM2.5 NONATTAINMENT OR MAINTENANCE AREA- The term ‘PM2.5 nonattainment or maintenance area’ means a nonattainment or maintenance area designated under section 107(d)(6) of the Clean Air Act (42 U.S.C. 7407(d)(6)).

‘(c) Criteria Eligible Activities- For purposes of subsection (b)(3)(A):

‘(1) DIESEL EXHAUST CONTROL TECHNOLOGY- For a diesel exhaust control technology, the technology shall be--

‘(A) installed on a diesel engine or vehicle;

‘(B) a verified technology (as defined in section 791 of the Energy Policy Act of 2005 (42 U.S.C. 16131)), for nonroad vehicles and nonroad engines (as defined in section 216 of the Clean Air Act (42 U.S.C. 7550)); and

‘(C) certified by the installer as having been installed in accordance with the specifications included on the list published pursuant to section 149(f)(2), as in effect on the day before the date of enactment of the MAP-21, for achieving a reduction in particulate matter.

‘(2) DIESEL ENGINE UPGRADE- For a diesel engine upgrade, the upgrade shall be performed on an engine that is--

‘(A) rebuilt using new or manufactured components that collectively qualify as verified technologies (as defined in section 791 of the Energy Policy Act of 2005 (42 U.S.C. 16131)), for nonroad vehicles and nonroad engines (as defined in section 216 of the Clean Air Act (42 U.S.C. 7550)); and

‘(B) certified by the installer to have been installed in accordance with the specifications included on the list published pursuant to section 149(f)(2), as in effect on the day before the date of enactment of the MAP-21, for achieving a reduction in particulate matter.

‘(3) DIESEL ENGINE REPOWER- For a diesel engine repower, the repower shall be conducted using a new or remanufactured diesel engine that is--

‘(A) installed as a replacement for an engine used in the existing equipment, subject to the condition that the replaced engine is returned to the supplier for remanufacturing to a more stringent set of engine emissions standards or for use as scrap; and

‘(B) meeting a more stringent engine particulate matter emission standard for the applicable engine power group established by the Environmental Protection Agency than the engine particulate matter emission standard applicable to the replaced engine.

‘(4) IDLE REDUCTION CONTROL TECHNOLOGY- For an idle reduction control technology, the technology shall be--

‘(A) installed on a diesel engine or vehicle;

‘(B) a verified technology (as defined in section 791 of the Energy Policy Act of 2005 (42 U.S.C. 16131)), for nonroad vehicles and nonroad engines (as defined in section 216 of the Clean Air Act (42 U.S.C. 7550)); and

‘(C) certified by the installer as having been installed in accordance with the specifications included on the list published pursuant to section 149(f)(2), as in effect on the day before the date of enactment of the MAP-21, for achieving a reduction in particulate matter.

‘(d) Eligibility for Credits-

‘(1) IN GENERAL- A State may take credit in a State implementation plan for national ambient air quality standards for any emission reductions that result from the implementation of this section.

‘(2) CREDITING- An emission reduction described in paragraph (1) may be credited toward demonstrating conformity of State implementation plans and transportation plans.’.

(b) Savings Clause- Nothing in this section modifies or otherwise affects any authority or restrictions established under the Clean Air Act (42 U.S.C. 7401 et seq.).

(c) Report to Congress-

(1) IN GENERAL- Not later than 2 years after the date of enactment of this Act, the Secretary of Transportation shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report that describes the manners in which section 330 of title 23, United States Code (as added by subsection (a)) has been implemented, including the quantity of covered equipment serviced under those sections and the costs associated with servicing the covered equipment.

(2) INFORMATION FROM STATES- The Secretary shall require States and recipients, as a condition of receiving amounts under this Act or under the provisions of any amendments made by this Act, to submit to the Secretary any information that the Secretary determines necessary to complete the report under paragraph (1).

(d) Technical Amendment- The analysis for chapter 3 of title 23, United States Code, is amended by adding at the end the following:

‘330. Construction equipment and vehicles.’.

SEC. 1512. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES.

Section 1805(a) of the SAFETEA-LU (23 U.S.C. 144 note; 119 Stat. 1459) is amended by striking ‘highway bridge replacement and rehabilitation program under section 144’ and inserting ‘national highway performance program under section 119’.

SEC. 1513. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE WEIGHT RESTRICTIONS.

Section 1023(h) of the Intermodal Surface Transportation Efficiency Act of 1991 (23 U.S.C. 127 note; Public Law 102-388) is amended--

(1) in the heading of paragraph (1) by striking ‘TEMPORARY EXEMPTION’ and inserting ‘EXEMPTION’;

(2) in paragraph (1) by striking ‘, for the period beginning on October 6, 1992, and ending on October 1, 2009,’; and

(3) in paragraph (2)(A) by striking ‘For the period beginning on the date of enactment of this subparagraph and ending on September 30, 2009, a’ and inserting ‘A’.

SEC. 1514. UNIFORM RELOCATION ASSISTANCE ACT AMENDMENTS.

(a) Moving and Related Expenses- Section 202 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4622) is amended--

(1) in subsection (a)(4) by striking ‘$10,000’ and inserting ‘$25,000, as adjusted by regulation, in accordance with section 213(d)’; and

(2) in the second sentence of subsection (c) by striking ‘$20,000’ and inserting ‘$40,000, as adjusted by regulation, in accordance with section 213(d)’.

(b) Replacement Housing for Homeowners- The first sentence of section 203(a)(1) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4623(a)(1)) is amended--

(1) by striking ‘$22,500’ and inserting ‘$31,000, as adjusted by regulation, in accordance with 213(d),’; and

(2) by striking ‘one hundred and eighty days prior to’ and inserting ‘90 days before’.

(c) Replacement Housing for Tenants and Certain Others- Section 204 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4624) is amended--

(1) in the second sentence of subsection (a) by striking ‘$5,250’ and inserting ‘$7,200, as adjusted by regulation, in accordance with section 213(d)’; and

(2) in the second sentence of subsection (b) by striking ‘, except’ and all that follows through the end of the subsection and inserting a period.

(d) Duties of Lead Agency- Section 213 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4633) is amended--

(1) in subsection (b)--

(A) in paragraph (2) by striking ‘and’ at the end;

(B) in paragraph (3) by striking the period at the end and inserting ‘; and’; and

(C) by adding at the end the following:

‘(4) that each Federal agency that has programs or projects requiring the acquisition of real property or causing a displacement from real property subject to the provisions of this Act shall provide to the lead agency an annual summary report the describes the activities conducted by the Federal agency.’; and

(2) by adding at the end the following:

‘(d) Adjustment of Payments- The head of the lead agency may adjust, by regulation, the amounts of relocation payments provided under sections 202(a)(4), 202(c), 203(a), and 204(a) if the head of the lead agency determines that cost of living, inflation, or other factors indicate that the payments should be adjusted to meet the policy objectives of this Act.’.

(e) Agency Coordination- Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 is amended by inserting after section 213 (42 U.S.C. 4633) the following:

‘SEC. 214. AGENCY COORDINATION.

‘(a) Agency Capacity- Each Federal agency responsible for funding or carrying out relocation and acquisition activities shall have adequately trained personnel and such other resources as are necessary to manage and oversee the relocation and acquisition program of the Federal agency in accordance with this Act.

‘(b) Interagency Agreements- Not later than 1 year after the date of enactment of this section, each Federal agency responsible for funding relocation and acquisition activities (other than the agency serving as the lead agency) shall enter into a memorandum of understanding with the lead agency that--

‘(1) provides for periodic training of the personnel of the Federal agency, which in the case of a Federal agency that provides Federal financial assistance, may include personnel of any displacing agency that receives Federal financial assistance;

‘(2) addresses ways in which the lead agency may provide assistance and coordination to the Federal agency relating to compliance with the Act on a program or project basis; and

‘(3) addresses the funding of the training, assistance, and coordination activities provided by the lead agency, in accordance with subsection (c).

‘(c) Interagency Payments-

‘(1) IN GENERAL- For the fiscal year that begins 1 year after the date of enactment of this section, and each fiscal year thereafter, each Federal agency responsible for funding relocation and acquisition activities (other than the agency serving as the lead agency) shall transfer to the lead agency for the fiscal year, such funds as are necessary, but not less than $35,000, to support the training, assistance, and coordination activities of the lead agency described in subsection (b).

‘(2) INCLUDED COSTS- The cost to a Federal agency of providing the funds described in paragraph (1) shall be included as part of the cost of 1 or more programs or projects undertaken by the Federal agency or with Federal financial assistance that result in the displacement of persons or the acquisition of real property.’.

(f) Cooperation With Federal Agencies- Section 308 of title 23, United States Code, is amended by striking subsection (a) and inserting the following:

‘(a) Authorized Activities-

‘(1) IN GENERAL- The Secretary may perform, by contract or otherwise, authorized engineering or other services in connection with the survey, construction, maintenance, or improvement of highways for other Federal agencies, cooperating foreign countries, and State cooperating agencies.

‘(2) INCLUSIONS- Services authorized under paragraph (1) may include activities authorized under section 214 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

‘(3) REIMBURSEMENT- Reimbursement for services carried out under this subsection (including depreciation on engineering and road-building equipment) shall be credited to the applicable appropriation.’.

(g) Effective Dates-

(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of enactment of this Act.

(2) EXCEPTION- The amendments made by subsections (a) through (c) shall take effect 2 years after the date of enactment of this Act.

SEC. 1515. USE OF YOUTH SERVICE AND CONSERVATION CORPS.

(a) In General- The Secretary shall encourage the States and regional transportation planning agencies to enter into contracts and cooperative agreements with qualified youth service or conservation corps, as defined in sections 122(a)(2) of Public Law 101-610 (42 U.S.C. 12572(a)(2)) and 106(c)(3) of Public Law 103-82 (42 U.S.C. 12656(c)(3)) to perform--

(1) appropriate projects eligible under sections 162, 206, and 217 of title 23, United States Code;

(2) appropriate transportation enhancement activities, as defined under section 101(a) of such title;

(3) appropriate byway, trail, or bicycle and pedestrian projects under sections 202, 203, and 204 of such title; and

(4) appropriate safe routes to school projects under section 1404 of the SAFETEA-LU (119 Stat. 1228).

(b) Requirements- Under any contract or cooperative agreement entered into with a qualified youth service or conservation corps under this section, the Secretary shall--

(1) set the amount of a living allowance or rate of pay for each participant in such corps at--

(A) such amount or rate as required under State law in a State with such requirements; or

(B) for corps in States not described in subparagraph (A), at such amount or rate as determined by the Secretary, not to exceed the maximum living allowance authorized by section 140 of Public Law 101-610 (42 U.S.C. 12594); and

(2) not subject such corps to the requirements of section 112 of title 23, United States Code.

SEC. 1516. CONSOLIDATION OF PROGRAMS; REPEAL OF OBSOLETE PROVISIONS.

(a) Consolidation of Programs- From administrative funds made available under section 104(a) of title 23, United States Code, not less than $15,000,000 for each of fiscal years 2012 and 2013 shall be made available for the following activities:

(1) To carry out the operation lifesaver program--

(A) to provide public information and education programs to help prevent and reduce motor vehicle accidents, injuries, and fatalities; and

(B) to improve driver performance at railway-highway crossings.

(2) To operate the national work zone safety information clearinghouse authorized by section 358(b)(2) of the National Highway System Designation Act of 1995 (23 U.S.C. 401 note; 109 Stat. 625)

(3) To operate a public road safety clearinghouse in accordance with section 1411(a) of the SAFETEA-LU (23 U.S.C. 402 note; 119 Stat. 1234).

(4) To operate a bicycle and pedestrian safety clearinghouse in accordance with section 1411(b) of the SAFETEA-LU (23 U.S.C. 402 note; 119 Stat. 1234).

(5) To operate a national safe routes to school clearinghouse in accordance with section 1404(g) of the SAFETEA-LU (23 U.S.C. 402 note; 119 Stat. 1229).

(6) To provide work zone safety grants in accordance with subsections (a) and (b) of section 1409 of the SAFETEA-LU (23 U.S.C. 401 note; 119 Stat. 1232).

(7) To provide grants to prohibit racial profiling in accordance with section 1906 of the SAFETEA-LU (23 U.S.C. 402 note; 119 Stat. 1468).

(b) Repeals- Sections 105, 110, 117, 124, 151, 155, 160, and 303 of title 23, United States Code, are repealed.

(c) Conforming Amendments-

(1) TITLE ANALYSIS- The analysis for title 23, United States Code, is amended by striking the items relating to sections 105, 110, 117, 124, 151, 155, 160, and 303 of that title.

(2) SECTION 118- Section 118 of such title is amended--

(A) in subsection (b)--

(i) by striking paragraph (1) and all that follows through the heading of paragraph (2); and

(ii) by striking ‘(other than for Interstate construction)’;

(B) by striking subsection (c); and

(C) by redesignating subsections (d) and (e) as subsections (c) and (d), respectively.

(3) SECTION 130- Section 130 of such title is amended--

(A) by striking subsections (e) through (h);

(B) by redesignating subsection (i) as subsection (e);

(C) by striking subsections (j) and (k);

(D) by redesignating subsection (l) as subsection (f);

(E) in subsection (e) (as so redesignated) by striking ‘this section’the second place it appears and inserting ‘section 104(b)(3)’; and

(F) in subsection (f) (as so redesignated) by striking paragraphs (3) and (4).

(4) SECTION 142- Section 142 of title 23, United States Code, is amended--

(A) in subsection (a)--

(i) in paragraph (1)--

(I) by striking ‘motor vehicles (other than rail)’ and inserting ‘buses’;

(II) by striking ‘(hereafter in this section referred to as ‘buses’)’;

(III) by striking ‘Federal-aid systems’ and inserting ‘Federal-aid highways’; and

(IV) by striking ‘Federal-aid system’ and inserting ‘Federal-aid highway’; and

(ii) in paragraph (2)--

(I) by striking ‘as a project on the the surface transportation program for’; and

(II) by striking ‘section 104(b)(3)’ and inserting ‘section 104(b)(2);

(B) in subsection (b) by striking ‘104(b)(4)’ and inserting ‘104(b)(1)’;

(C) in subsection (c)--

(i) by striking ‘system’ in each place it appears and inserting ‘highway’; and

(ii) by striking ‘highway facilities’ and inserting ‘highways eligible under the program that is the source of the funds’;

(D) in subsection (e)(2)--

(i) by striking ‘Notwithstanding section 209(f)(1) of the Highway Revenue Act of 1956, the Highway Trust Fund shall be available for making expenditures to meet obligations resulting from projects authorized by subsection (a)(2) of this section and such projects’ and inserting ‘Projects authorized by subsection (a)(2)’; and

(ii) striking ‘on the surface transportation program’ and inserting ‘under the transportation mobility program’; and

(E) in subsection (f) by striking ‘exits’ and inserting ‘exists’.

(5) SECTION 145- Section 145(b) of title 23, United States Code, is amended by striking ‘section 117 of this title,’.

(6) SECTION 322- Section 322(h)(3) of title 23, United States Code, is amended by striking ‘surface transportation program’ and inserting ‘the transportation mobility program’.

(d) Certain Allocations- Notwithstanding any other provision of law, any unobligated balances of amounts required to be allocated to a State by section 1307(d)(1) of the SAFETEA-LU (23 U.S.C. 322 note; 119 Stat. 1217; 122 Stat. 1577) shall instead be made available to such State for any purpose eligible under section 133(c) of title 23, United States Code.

SEC. 1517. RESCISSIONS.

(a) Fiscal Year 2012-

(1) Not later than 30 days after the date of enactment of this Act, of the unobligated balances available under sections 144(f) and 320 of title 23, United States Code, section 147 of Public Law 95-599 (23 U.S.C. 144 note; 92 Stat. 2714), section 9(c) of Public Law 97-134 (95 Stat. 1702), section 149 of Public Law 100-17 (101 Stat. 181), sections 1006, 1069, 1103, 1104, 1105, 1106, 1107, 1108, 6005, 6015, and 6023 of Public Law 102-240 (105 Stat. 1914), section 1602 of Public Law 105-178 (112 Stat. 256), sections 1301, 1302, 1702, and 1934 of Public Law 109-59 (119 Stat. 1144), and of other funds apportioned to each State under chapter 1 of title 23, United States Code, prior to the date of enactment of this Act, $2,391,000,000 are permanently rescinded.

(2) In administering the rescission required under this subsection, the Secretary shall allow each State to determine the amount of the required rescission to be drawn from the programs to which the rescission applies.

(b) Fiscal Year 2013-

(1) On October 1, 2012, of the unobligated balances of funds apportioned or allocated on or before that date to each State under chapter 1 of title 23, United States Code, $3,054,000,000 are permanently rescinded.

(2) Notwithstanding section 1132 of the Energy Independence and Security Act of 2007 (Public Law 110-140; 121 Stat. 1763), in administering the rescission required under this subsection, the Secretary shall allow each State to determine the amount of the required rescission to be drawn from the programs to which the rescission applies.

SEC. 1518. STATE AUTONOMY FOR CULVERT PIPE SELECTION.

Not later than 180 days after the date of enactment of this Act, the Secretary shall modify section 635.411 of title 23, Code of Federal Regulations (as in effect on the date of enactment of this Act), to ensure that States shall have the autonomy to determine culvert and storm sewer material types to be included in the construction of a project on a Federal-aid highway.

SEC. 1519. EFFECTIVE AND SIGNIFICANT PERFORMANCE MEASURES.

(a) Limited Number of Performance Measures- In implementing provisions of this Act (including the amendments made by this Act) and title 23, United States Code (other than chapter 4 of that title), that authorize the Secretary to develop performance measures, the Secretary shall limit the number of performance measures established to the most significant and effective measures.

(b) Different Approaches for Urban and Rural Areas- In the development and implementation of any performance target, a State may, as appropriate, provide for different performance targets for urbanized and rural areas.

SEC. 1520. REQUIREMENTS FOR ELIGIBLE BRIDGE PROJECTS.

(a) Definitions- In this section:

(1) ELIGIBLE BRIDGE PROJECT- The term ‘eligible bridge project’ means a project for construction, alteration, or repair work on a bridge or overpass funded directly by, or provided other assistance through, the Federal Government.

(2) QUALIFIED TRAINING PROGRAM- The term ‘qualified training program’ means a training program that--

(A)(i) is certified by the Secretary of Labor; and

(ii) with respect to an eligible bridge project located in an area in which the Secretary of Labor determines that a training program does not exist, is registered with--

(I) the Department of Labor; or

(II) a State agency recognized by the Department of Labor for purposes of a Federal training program; or

(B) is a corrosion control, mitigation and prevention personnel training program that is offered by an organization whose standards are recognized and adopted in other Federal or State Departments of Transportation.

(3) SECRETARY- The term ‘Secretary’ means the Secretary of Transportation.

(b) Eligibility Requirements-

(1) IN GENERAL- Each contractor and subcontractor that carries out any aspect of an eligible bridge project described in paragraph (2) shall--

(A) before entering into the applicable contract, be certified by the Secretary or a State, in accordance with paragraph (4), as meeting the eligibility requirements described in paragraph (3); and

(B) remain certified as described in subparagraph (A) while carrying out the applicable aspect of the eligible bridge project.

(2) DESCRIPTION OF ASPECTS OF ELIGIBLE BRIDGE PROJECTS- An aspect of an eligible bridge project referred to in paragraph (1) is--

(A) surface preparation or coating application on bridge steel of an eligible bridge project;

(B) removal of a lead-based or other hazardous coating from bridge steel of an existing eligible bridge project;

(C) shop painting of structural steel fabricated for installation on bridge steel of an eligible bridge project; and

(D) the design, application, installation, and maintenance of a cathodic protection system.

(3) REQUIREMENTS- The eligibility requirements referred to in paragraph (1) are that a contractor or subcontractor shall--

(A) as determined by the Secretary--

(i) use corrosion mitigation and prevention methods to preserve relevant bridges and overpasses, taking into account--

(I) material selection;

(II) coating considerations;

(III) cathodic protection considerations;

(IV) design considerations for corrosion; and

(V) trained applicators;

(ii) use best practices--

(I) to prevent environmental degradation; and

(II) to ensure careful handling of all hazardous materials; and

(iii) demonstrate a history of employing industry-respected inspectors to ensure funds are used in the interest of affected taxpayers; and

(B) demonstrate a history of compliance with applicable requirements of the Occupational Safety and Health Administration, as determined by the Secretary of Labor.

(4) STATE CONSULTATION- In determining whether to certify a contractor or subcontractor under paragraph (1)(A), a State shall consult with engineers and other experts trained in accordance with subsection (a)(2) specializing in corrosion control, mitigation, and prevention methods.

(c) Optional Training Program- As a condition of entering into a contract for an eligible bridge project, each contractor and subcontractor that performs construction, alteration, or repair work on a bridge or overpass for the eligible bridge project may provide, or make available, training, through a qualified training program, for each applicable craft or trade classification of employees that the contractor or subcontractor intends to employ to carry out aspects of eligible bridge projects as described in subsection (b)(2).

SEC. 1521. IDLE REDUCTION TECHNOLOGY.

Section 127(a)(12) of title 23, United States Code, is amended--

(1) in subparagraph (B), by striking ‘400’ and inserting ‘550’; and

(2) in subparagraph (C)(ii), by striking ‘400-pound’ and inserting ‘550-pound’.

SEC. 1522. REPORT ON HIGHWAY TRUST FUND EXPENDITURES.

(a) Initial Report- Not later than 150 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report describing the activities funded from the Highway Trust Fund during each of fiscal years 2009 through 2011, including for purposes other than construction and maintenance of highways and bridges.

(b) Updates- Not later than 5 years after the date on which the report is submitted under subsection (a) and every 5 years thereafter, the Comptroller General of the United States shall submit to Congress a report that updates the information provided in the report under that subsection for the applicable 5-year period.

(c) Inclusions- A report submitted under subsection (a) or (b) shall include information similar to the information included in the report of the Government Accountability Office numbered ‘GAO-09-729R’ and entitled ‘Highway Trust Fund Expenditures on Purposes Other Than Construction and Maintenance of Highways and Bridges During Fiscal Years 2004-2008’.

SEC. 1523. EVACUATION ROUTES.

Each State shall give adequate consideration to the needs of evacuation routes in the State, including such routes serving or adjacent to facilities operated by the Armed Forces, when allocating funds apportioned to the State under title 23, United States Code, for the construction of Federal-aid highways.

SEC. 1524. DEFENSE ACCESS ROAD PROGRAM ENHANCEMENTS TO ADDRESS TRANSPORTATION INFRASTRUCTURE IN THE VICINITY OF MILITARY INSTALLATIONS.

The second sentence of section 210(a)(2) of title 23, United States Code, is amended by inserting ‘, in consultation with the Secretary of Transportation,’ before ‘shall determine’.

SEC. 1525. EXPRESS LANES DEMONSTRATION PROGRAM.

Section 1604(b) of the SAFETEA-LU (23 U.S.C. 129 note; Public Law 109-59) is amended--

(1) in paragraph (1)(A)--

(A) in clause (ii), by inserting ‘and’ after the semicolon;

(B) by striking clause (iii); and

(C) by redesignating clause (iv) as clause (iii); and

(2) in paragraph (2), by striking ‘2009’ and inserting ‘2013’.

SEC. 1526. TREATMENT OF HISTORIC SIGNS.

The Secretary shall, not later than 180 days after the date of enactment of this Act, initiate a rulemaking to exempt locally identified historic street name signs or replicas of historic signs from complying with all or part of section 2D.43 of the Manual on Uniform Traffic Control Devices.

SEC. 1527. CONSOLIDATION OF GRANTS.

(a) Definitions- In this section, the term ‘recipient’ means--

(1) a State, local, or tribal government, including--

(A) a territory of the United States;

(B) a transit agency;

(C) a port authority;

(D) a metropolitan planning organization; or

(E) any other political subdivision of a State or local government;

(2) a multistate or multijurisdictional group, if each member of the group is an entity described in paragraph (1); and

(3) a public-private partnership, if both parties are engaged in building the project.

(b) Consolidation-

(1) IN GENERAL- A recipient that receives multiple grant awards from the Department to support 1 multimodal project may request that the Secretary designate 1 modal administration in the Department to be the lead administering authority for the overall project.

(2) NEW STARTS- Any project that includes funds awarded under section 5309 of title 49, United States Code, shall be exempt from consolidation under this section unless the grant recipient requests the Federal Transit Administration to be the lead administering authority.

(3) REVIEW-

(A) IN GENERAL- Not later than 30 days after the date on which a request under paragraph (1) is made, the Secretary shall review the request and approve or deny the designation of a single modal administration as the lead administering authority and point of contact for the Department.

(B) NOTIFICATION-

(i) IN GENERAL- The Secretary shall notify the requestor of the decision of the Secretary under subparagraph (A) in such form and at such time as the Secretary and the requestor agree.

(ii) DENIAL- If a request is denied, the Secretary shall provide the requestor with a detailed explanation of the reasoning of the Secretary with the notification under clause (i).

(c) Duties-

(1) IN GENERAL- A modal administration designated as a lead administering authority under this section shall--

(A) be responsible for leading and coordinating the integrated project management team, which shall consist of all of the other modal administrations in the Department relating to the multimodal project; and

(B) to the extent feasible during the first 30 days of carrying out the multimodal project, identify overlapping or duplicative regulatory requirements that exist for the project and propose a single, streamlined approach to meeting all of the applicable regulatory requirements through the activities described in subsection (d).

(2) ADMINISTRATION-

(A) IN GENERAL- The Secretary shall transfer all amounts that have been awarded for the multimodal project to the modal administration designated as the lead administering authority.

(B) OPTION-

(i) IN GENERAL- Participation under this section shall be optional for recipients, and no recipient shall be required to participate.

(ii) SECRETARIAL DUTIES- The Secretary is not required to identify every recipient that may be eligible to participate under this section.

(d) Cooperation-

(1) IN GENERAL- The Secretary and modal administrations with relevant jurisdiction over a multimodal project should cooperate on project review and delivery activities at the earliest practicable time.

(2) PURPOSES- The purposes of the cooperation under paragraph (1) are--

(A) to avoid delays and duplication of effort later in the process;

(B) to prevent potential conflicts; and

(C) to ensure that planning and project development decisions are made in a streamlined manner and consistent with applicable law.

(e) Applicability- Nothing in this section shall--

(1) supersede, amend, or modify the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal environmental law; or

(2) affect the responsibility of any Federal officer to comply with or enforce any law described in paragraph (1).

SEC. 1528. BUY AMERICA PROVISIONS.

Section 313 of title 23, United States Code, is amended by adding at the end the following:

‘(g) Application to Highway Programs- The requirements under this section shall apply to all contracts eligible for assistance under this chapter for a project carried out within the scope of the applicable finding, determination, or decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding source of such contracts, if at least 1 contract for the project is funded with amounts made available to carry out this title.’.

SEC. 1529. EXEMPTIONS FROM REQUIREMENTS FOR CERTAIN FARM VEHICLES.

(a) Federal Requirements- A covered farm vehicle, including the individual operating that vehicle, shall be exempt from the following:

(1) Any requirement relating to commercial driver’s licenses established under chapter 313 of title 49, United States Code.

(2) Any requirement relating to medical certificates established under--

(A) subchapter III of chapter 311 of title 49, United States Code; or

(B) chapter 313 of title 49, United States Code.

(3) Any requirement relating to hours of service established under--

(A) subchapter III of chapter 311 of title 49, United States Code; or

(B) chapter 315 of title 49, United States Code.

(4) Any requirement relating to vehicle inspection, repair, and maintenance established under--

(A) subchapter III of chapter 311 of title 49, United States Code; or

(B) chapter 315 of title 49, United States Code.

(b) State Requirements-

(1) IN GENERAL- Federal transportation funding to a State may not be terminated, limited, or otherwise interfered with as a result of the State exempting a covered farm vehicle, including the individual operating that vehicle, from any State requirement relating to the operation of that vehicle.

(2) EXCEPTION- Paragraph (1) does not apply with respect to a covered farm vehicle transporting hazardous materials that require a placard.

(3) STATE REQUIREMENTS- Notwithstanding section (a) or any other provision of law, a State may enact and enforce safety requirements related to covered farm vehicles.

(c) Covered Farm Vehicle Defined-

(1) IN GENERAL- In this section, the term ‘covered farm vehicle’ means a motor vehicle (including an articulated motor vehicle)--

(A) that--

(i) is traveling in the State in which the vehicle is registered or another State;

(ii) is operated by--

(I) a farm owner or operator;

(II) a ranch owner or operator; or

(III) an employee or family member of an individual specified in subclause (I) or (II);

(iii) is transporting to or from a farm or ranch--

(I) agricultural commodities;

(II) livestock; or

(III) machinery or supplies;

(iv) except as provided in paragraph (2), is not used in the operations of a for-hire motor carrier; and

(v) is equipped with a special license plate or other designation by the State in which the vehicle is registered to allow for identification of the vehicle as a farm vehicle by law enforcement personnel; and

(B) that has a gross vehicle weight rating or gross vehicle weight, whichever is greater, that is--

(i) 26,001 pounds or less; or

(ii) greater than 26,001 pounds and traveling within the State or within 150 air miles of the farm or ranch with respect to which the vehicle is being operated.

(2) INCLUSION- In this section, the term ‘covered farm vehicle’ includes a motor vehicle that meets the requirements of paragraph (1) (other than paragraph (1)(A)(iv)) and is--

(A) operated pursuant to a crop share farm lease agreement;

(B) owned by a tenant with respect to that agreement; and

(C) transporting the landlord’s portion of the crops under that agreement.

(d) Safety Study- The Secretary shall conduct a study of the exemption required by section (a) as follows--

(1) Data and analysis of covered farm vehicles shall include:

(A) the number of vehicles that are operated subject to each of the regulatory exemptions permitted under section (a);

(B) the number of drivers that operate covered farm vehicles subject to each of the regulatory exemptions permitted under section (a);

(C) the number of crashes involving covered farm vehicles;

(D) the number of occupants and non-occupants injured in crashes involving covered farm vehicles;

(E) the number of fatalities of occupants and non-occupants killed in crashes involving farm vehicles;

(F) crash investigations and accident reconstruction investigations of all fatalities in crashes involving covered farm vehicles;

(G) overall operating mileage of covered farm vehicles;

(H) numbers of covered farm vehicles that operate in neighboring states; and

(I) any other data the Secretary deems necessary to analyze and include.

(2) A listing of state regulations issued and maintained in each state that are identical to the federal regulations that are subject to exemption in section (a).

(3) The Secretary shall report the findings of the study to the appropriate committees of the Congress not later than 18 months after enactment of MAP-21.

SEC. 1530. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

(a) Sense of the Senate- It is the Sense of the Senate that the timely completion of the Appalachian development highway system is a transportation priority in the national interest.

(b) Modified Federal Share for Projects on Adhs- For fiscal years 2012 through 2021, the Federal share payable for the cost of constructing highways and access roads on the Appalachian development highway system under section 14501 of title 40, United States Code, with funds made available to a State for fiscal year 2012 or a previous fiscal year for the Appalachian development highway system program, or with funds made available for fiscal year 2012 or a previous fiscal year for a specific project, route, or corridor on that system, shall be 95 percent.

(c) Federal Share for Other Funds Used on Adhs- For fiscal years 2012 through 2021, the Federal share payable for the cost of constructing highways and access roads on the Appalachian development highway system under section 14501 of title 40, United States Code, with Federal funds apportioned to a State for a program other than the Appalachian development highway system program shall be 95 percent.

(d) Completion Plan- Not later than 1 year after the date of enactment of the MAP-21, each State represented on the Appalachian Regional Commission shall establish a plan for the completion of the designated corridors of the Appalachian development highway system within the State, including annual performance targets, with a target completion date.

SEC. 1531. DENALI COMMISSION.

The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is amended--

(1) in section 305, by striking subsection (c) and inserting the following:

‘(c) Gifts-

‘(1) IN GENERAL- Except as provided in paragraph (2), the Commission, on behalf of the United States, may accept use, and dispose of gifts or donations of services, property, or money for purposes of carrying out this Act.

‘(2) CONDITIONAL- With respect to conditional gifts--

‘(A)(i) the Commission, on behalf of the United States, may accept conditional gifts for purposes of carrying out this Act, if approved by the Federal Cochairperson; and

‘(ii) the principal of and income from any such conditional gift shall be held, invested, reinvested, and used in accordance with the condition applicable to the gift; but

‘(B) no gift shall be accepted that is conditioned on any expenditure not to be funded from the gift or from the income generated by the gift unless the expenditure has been approved by Act of Congress.’; and

(2) by adding at the end the following:

‘SEC. 311. TRANSFER OF FUNDS FROM OTHER FEDERAL AGENCIES.

‘(a) In General- Subject to subsection (c), for purposes of this Act, the Commission may accept transfers of funds from other Federal agencies.

‘(b) Transfers- Any Federal agency authorized to carry out an activity that is within the authority of the Commission may transfer to the Commission any appropriated funds for the activity.

‘(c) Treatment- Any funds transferred to the Commission under this subsection--

‘(1) shall remain available until expended; and

‘(2) may, to the extent necessary to carry out this Act, be transferred to, and merged with, the amounts made available by appropriations Acts for the Commission by the Federal Cochairperson.’.

SEC. 1532. UPDATED CORROSION CONTROL AND PREVENTION REPORT.

Not later than 30 months after the date of enactment of this Act, the Secretary shall submit to Congress an updated report on the costs and benefits of the prevention and control of corrosion on the surface transportation infrastructure of the United States.

SEC. 1533. HARBOR MAINTENANCE TRUST FUND.

(a) Findings- Congress finds that--

(1) there are 926 coastal, Great Lakes, and inland harbors maintained by the Corps of Engineers;

(2) according to the Bureau of Transportation Statistics--

(A) in 2009, the ports and waterways of the United States handled more than 2,200,000,000 short tons of imports, exports, and domestic shipments; and

(B) in 2010, United States ports were responsible for more than $1,400,000,000,000 in waterborne imports and exports;

(3) according to the Congressional Research Service, full channel dimensions are, on average, available approximately 1/3 of the time at the 59 harbors of the United States with the highest use rates;

(4) insufficient maintenance dredging of the navigation channels of the United States results in inefficient water transportation and causes harmful economic consequences;

(5) in 1986, Congress created the Harbor Maintenance Trust Fund to provide funds for the operation and maintenance of the navigation channels of the United States;

(6) in fiscal year 2012, the Harbor Maintenance Trust Fund is expected to grow from $6,280,000,000 to $7,011,000,000, an increase of approximately 13 percent;

(7) despite the growth of the Harbor Maintenance Trust Fund, expenditures from the Fund have not equaled revenues, and the Fund is not being fully used for the intended purpose of the Fund; and

(8) inadequate investment in dredging needs is restricting access to the ports of the United States for domestic shipping, imports, and exports and therefore threatening the economic competitiveness of the United States.

(b) Sense of the Senate- It is the sense of the Senate that--

(1) the Administration should request full use of the Harbor Maintenance Trust Fund for operating and maintaining the navigation channels of the United States;

(2) the amounts in the Harbor Maintenance Trust Fund should be fully expended to operate and maintain the navigation channels of the United States; and

(3) Congress should ensure that other programs, projects, and activities of the Civil Works Program of the Corps of Engineers, especially those programs, projects, and activities relating to inland navigation and flood control, are not adversely impacted.

SEC. 1534. ENRICHMENT TECHNOLOGY AND INTELLECTUAL PROPERTY.

(a) In addition to any other transfer authority, the Secretary may transfer, not earlier than thirty days after certification to the Committees on Appropriations of the House of Representatives and the Senate that such transfer is needed for national security reasons, and after Congressional notification and approval of the Committees on Appropriations of the House of Representatives and the Senate, up to $150,000,000 made available in prior Appropriations Acts to further the development and demonstration of national security-related enrichment technologies. No amounts may be transferred under this section from amounts that were designated by the Congress as an emergency requirement pursuant to the Concurrent Resolution on the Budget or the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

(b) The Secretary shall provide, directly or indirectly, Federal funds, resources, or other benefit for the research, development, or deployment of domestic enrichment technology under this section--

(1) using merit selection procedures; and

(2) only if the Secretary shall execute an agreement with the recipient (or any affiliate, successor, or assignee) of such funds, resources, or other benefit (hereinafter referred to as the ‘recipient’), which shall require, at a minimum--

(A) the achievement of specific technical criteria by the recipient by specific dates no later than June 30, 2014;

(B) that the recipient shall--

(i) immediately upon execution of the agreement, grant to the United States for use by or on behalf of the United States, through the Secretary, a royalty-free, non-exclusive license in all enrichment-related intellectual property and associated technical data owned, licensed or otherwise controlled by the recipient as of the date of enactment of this Act, or thereafter developed or acquired to meet the requirements of the agreement;

(ii) amend any existing agreement between the Secretary and the recipient to permit the Secretary to practice or permit third parties on behalf of the Secretary to practice intellectual property and associated technical data related to the award of funds, resources, or other benefit royalty-free for government purposes, including completing or operating enrichment technologies and using them for national defense purposes, such as providing nuclear material to operate commercial nuclear power reactors for tritium production; and

(iii) as soon as practicable, deliver to the Secretary all technical information and other documentation in its possession or control necessary to permit the Secretary to use and practice all intellectual property related to domestic enrichment technologies; and

(C) any other condition or restriction the Secretary determines is necessary to protect the interests of the United States.

(c) If the Secretary determines that a recipient has not achieved the technical criteria under the agreement pursuant to subsection (b), either by the dates specified in the original agreement or by June 30, 2014, whichever is earlier, the recipient shall, as soon as practicable, surrender custody, possession and control, or return, as appropriate, any real or personal property owned or leased by the recipient, to the Secretary in connection with the deployment of enrichment technology, along with all capital improvements, equipment, fixtures, appurtenances, and other improvements thereto, and any further obligation by the Secretary under any such lease shall terminate.

(d)(1) The limitations in this section shall apply to funds made available in this Act, prior Appropriations Acts, and any future Appropriations Acts.

(2) This section shall not apply with regard to the issuance of any loan guarantee pursuant to section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513).

(e) For purpose of this section, the term ‘Secretary’ shall mean the Secretary of the Department of Energy.

SEC. 1535. SENSE OF SENATE CONCERNING EXPEDITIOUS COMPLETION OF ENVIRONMENTAL REVIEWS, APPROVALS, LICENSING, AND PERMIT REQUIREMENTS.

It is the sense of the Senate that Federal agencies should--

(1) ensure that all applicable environmental reviews, approvals, licensing, and permit requirements under Federal law are completed on an expeditious basis following any disaster or emergency declared under Federal law, including--

(A) a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170); and

(B) an emergency declared by the President under section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5191); and

(2) use the shortest existing applicable process under Federal law to complete each review, approval, licensing, and permit requirement described in paragraph (1) following a disaster or emergency described in that paragraph.

Subtitle F--Gulf Coast Restoration

SEC. 1601. SHORT TITLE.

This subtitle may be cited as the ‘Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012’.

SEC. 1602. GULF COAST RESTORATION TRUST FUND.

(a) Establishment- There is established in the Treasury of the United States a trust fund to be known as the ‘Gulf Coast Restoration Trust Fund’ (referred to in this section as the ‘Trust Fund’), consisting of such amounts as are deposited in the Trust Fund under this subtitle or any other provision of law.

(b) Transfers- The Secretary of the Treasury shall deposit in the Trust Fund an amount equal to 80 percent of all administrative and civil penalties paid by responsible parties after the date of enactment of this Act in connection with the explosion on, and sinking of, the mobile offshore drilling unit Deepwater Horizon pursuant to a court order, negotiated settlement, or other instrument in accordance with section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321).

(c) Expenditures- Amounts in the Trust Fund, including interest earned on advances to the Trust Fund and proceeds from investment under subsection (d), shall--

(1) be available for expenditure, without further appropriation, solely for the purpose and eligible activities of this subtitle; and

(2) remain available until expended, without fiscal year limitation.

(d) Investment- Amounts in the Trust Fund shall be invested in accordance with section 9702 of title 31, United States Code, and any interest on, and proceeds from, any such investment shall be available for expenditure in accordance with this subtitle and the amendments made by this subtitle.

(e) Administration- Not later than 180 days after the date of enactment of this Act, after providing notice and an opportunity for public comment, the Secretary of the Treasury, in consultation with the Secretary of the Interior and the Secretary of Commerce, shall establish such procedures as the Secretary determines to be necessary to deposit amounts in, and expend amounts from, the Trust Fund pursuant to this subtitle, including--

(1) procedures to assess whether the programs and activities carried out under this subtitle and the amendments made by this subtitle achieve compliance with applicable requirements, including procedures by which the Secretary of the Treasury may determine whether an expenditure by a Gulf Coast State or coastal political subdivision (as those terms are defined in section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321)) pursuant to such a program or activity achieves compliance;

(2) auditing requirements to ensure that amounts in the Trust Fund are expended as intended; and

(3) procedures for identification and allocation of funds available to the Secretary under other provisions of law that may be necessary to pay the administrative expenses directly attributable to the management of the Trust Fund.

SEC. 1603. GULF COAST NATURAL RESOURCES RESTORATION AND ECONOMIC RECOVERY.

Section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321) is amended--

(1) in subsection (a)--

(A) in paragraph (25)(B), by striking ‘and’ at the end;

(B) in paragraph (26)(D), by striking the period at the end and inserting a semicolon; and

(C) by adding at the end the following:

‘(27) the term ‘Chairperson’ means the Chairperson of the Council;

‘(28) the term ‘coastal political subdivision’ means any local political jurisdiction that is immediately below the State level of government, including a county, parish, or borough, with a coastline that is contiguous with any portion of the United States Gulf of Mexico;

‘(29) the term ‘Comprehensive Plan’ means the comprehensive plan developed by the Council pursuant to subsection (t);

‘(30) the term ‘Council’ means the Gulf Coast Ecosystem Restoration Council established pursuant to subsection (t);

‘(31) the term ‘Deepwater Horizon oil spill’ means the blowout and explosion of the mobile offshore drilling unit Deepwater Horizon that occurred on April 20, 2010, and resulting hydrocarbon releases into the environment;

‘(32) the term ‘Gulf Coast ecosystem’ means--

‘(A) in the Gulf Coast States, the coastal zones (as that term is defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453), except that, in this section, the term ‘coastal zones’ includes land within the coastal zones that is held in trust by, or the use of which is by law subject solely to the discretion of, the Federal Government or officers or agents of the Federal Government) that border the Gulf of Mexico;

‘(B) any adjacent land, water, and watersheds, that are within 25 miles of the coastal zones described in subparagraph (A) of the Gulf Coast States; and

‘(C) all Federal waters in the Gulf of Mexico;

‘(33) the term ‘Gulf Coast State’ means any of the States of Alabama, Florida, Louisiana, Mississippi, and Texas; and

‘(34) the term ‘Trust Fund’ means the Gulf Coast Restoration Trust Fund established pursuant to section 1602 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.’;

(2) in subsection (s), by inserting ‘except as provided in subsection (t)’ before the period at the end; and

(3) by adding at the end the following:

‘(t) Gulf Coast Restoration and Recovery-

‘(1) STATE ALLOCATION AND EXPENDITURES-

‘(A) IN GENERAL- Of the total amounts made available in any fiscal year from the Trust Fund, 35 percent shall be available, in accordance with the requirements of this section, to the Gulf Coast States in equal shares for expenditure for ecological and economic restoration of the Gulf Coast ecosystem in accordance with this subsection.

‘(B) USE OF FUNDS-

‘(i) ELIGIBLE ACTIVITIES- Amounts provided to the Gulf States under this subsection may only be used to carry out 1 or more of the following activities:

‘(I) Coastal restoration projects and activities, including conservation and coastal land acquisition.

‘(II) Mitigation of damage to, and restoration of, fish, wildlife, or natural resources.

‘(III) Implementation of a federally approved marine, coastal, or comprehensive conservation management plan, including fisheries monitoring.

‘(IV) Programs to promote tourism in a Gulf Coast State, including recreational fishing.

‘(V) Programs to promote the consumption of seafood produced from the Gulf Coast ecosystem.

‘(VI) Programs to promote education regarding the natural resources of the Gulf Coast ecosystem.

‘(VII) Planning assistance.

‘(VIII) Workforce development and job creation.

‘(IX) Improvements to or upon State parks located in coastal areas affected by the Deepwater Horizon oil spill.

‘(X) Mitigation of the ecological and economic impact of outer Continental Shelf activities and the impacts of the Deepwater Horizon oil spill or promotion of the long-term ecological or economic recovery of the Gulf Coast ecosystem through the funding of infrastructure projects.

‘(XI) Coastal flood protection and infrastructure directly affected by coastal wetland losses, beach erosion, or the impacts of the Deepwater Horizon oil spill.

‘(XII) Administrative costs of complying with this subsection.

‘(ii) LIMITATION-

‘(I) IN GENERAL- Of the amounts received by a Gulf State under this subsection not more than 3 percent may be used for administrative costs eligible under clause (i)(XII).

‘(II) PROHIBITION ON USE FOR IMPORTED SEAFOOD- None of the funds made available under this subsection shall be used for any program to support or promote imported seafood or any seafood product that is not harvested from the Gulf Coast ecosystem.

‘(C) COASTAL POLITICAL SUBDIVISIONS-

‘(i) IN GENERAL- In the case of a State where the coastal zone includes the entire State--

‘(I) 75 percent of funding shall be provided to the 8 disproportionally affected counties impacted by the Deepwater Horizon Oil Spill; and

‘(II) 25 percent shall be provided to nondisproportionately impacted counties within the State.

‘(ii) FLORIDA-

‘(I) DISPROPORTIONALLY AFFECTED COUNTIES- Of the total amounts made available to counties in the State of Florida under clause (i)(I)--

‘(aa) 10 percent shall be distributed equally among the 8 disproportionately affected counties; and

‘(bb) 90 percent shall be distributed to the 8 disproportionately affected counties in accordance with the following weighted formula:

‘(AA) 30 percent based on the weighted average of the county shoreline oiled.

‘(BB) 30 percent based on the weighted average of the county per capita sales tax collections estimated for the fiscal year ending September 30, 2012.

‘(CC) 20 percent based on the weighted average of the population of the county.

‘(DD) 20 percent based on the inverse proportion of the weighted average distance from the Deepwater Horizon oil rig to each of the nearest and farthest points of the shoreline.

‘(II) NONDISPROPORTIONATELY IMPACTED COUNTIES- The total amounts made available to coastal political subdivisions in the State of Florida under clause (i)(II) shall be distributed according to the following weighted formula:

‘(aa) 34 percent based on the weighted average of the population of the county.

‘(bb) 33 percent based on the weighted average of the county per capita sales tax collections estimated for the fiscal year ending September 30, 2012.

‘(cc) 33 percent based on the inverse proportion of the weighted average distance from the Deepwater Horizon oil rig to each of the nearest and farthest points of the shoreline.

‘(iii) LOUISIANA- Of the total amounts made available to the State of Louisiana under this paragraph:

‘(I) 70 percent shall be provided directly to the State in accordance with this subsection.

‘(II) 30 percent shall be provided directly to parishes in the coastal zone (as defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of the State of Louisiana according to the following weighted formula:

‘(aa) 40 percent based on the weighted average of miles of the parish shoreline oiled.

‘(bb) 40 percent based on the weighted average of the population of the parish.

‘(cc) 20 percent based on the weighted average of the land mass of the parish.

‘(iv) CONDITIONS-

‘(I) LAND USE PLAN- As a condition of receiving amounts allocated under clause (iii), the chief executive of the eligible parish shall certify to the Governor of the State that the parish has completed a comprehensive land use plan.

‘(II) OTHER CONDITIONS- A coastal political subdivision receiving funding under this subsection shall meet all of the conditions in subparagraph (D).

‘(D) CONDITIONS- As a condition of receiving amounts from the Trust Fund, a Gulf Coast State, including the entities described in subparagraph (E), or a coastal political subdivision shall--

‘(i) agree to meet such conditions, including audit requirements, as the Secretary of the Treasury determines necessary to ensure that amounts disbursed from the Trust Fund will be used in accordance with this subsection;

‘(ii) certify in such form and in such manner as the Secretary of the Treasury determines necessary that the project or program for which the Gulf Coast State or coastal political subdivision is requesting amounts--

‘(I) is designed to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, coastal wetlands, or economy of the Gulf Coast;

‘(II) carries out 1 or more of the activities described in subparagraph (B)(i);

‘(III) was selected based on meaningful input from the public, including broad-based participation from individuals, businesses, and nonprofit organizations; and

‘(IV) in the case of a natural resource protection or restoration project, is based on the best available science;

‘(iii) certify that the project or program and the awarding of a contract for the expenditure of amounts received under this subsection are consistent with the standard procurement rules and regulations governing a comparable project or program in that State, including all applicable competitive bidding and audit requirements; and

‘(iv) develop and submit a multiyear implementation plan for use of those funds.

‘(E) APPROVAL BY STATE ENTITY, TASK FORCE, OR AGENCY- The following Gulf Coast State entities, task forces, or agencies shall carry out the duties of a Gulf Coast State pursuant to this paragraph:

‘(i) ALABAMA-

‘(I) IN GENERAL- In the State of Alabama, the Alabama Gulf Coast Recovery Council, which shall be comprised of only the following:

‘(aa) The Governor of Alabama, who shall also serve as Chairperson and preside over the meetings of the Alabama Gulf Coast Recovery Council.

‘(bb) The Director of the Alabama State Port Authority, who shall also serve as Vice Chairperson and preside over the meetings of the Alabama Gulf Coast Recovery Council in the absence of the Chairperson.

‘(cc) The Chairman of the Baldwin County Commission.

‘(dd) The President of the Mobile County Commission.

‘(ee) The Mayor of the city of Bayou La Batre.

‘(ff) The Mayor of the town of Dauphin Island.

‘(gg) The Mayor of the city of Fairhope.

‘(hh) The Mayor of the city of Gulf Shores.

‘(ii) The Mayor of the city of Mobile.

‘(jj) The Mayor of the city of Orange Beach.

‘(II) VOTE- Each member of the Alabama Gulf Coast Recovery Council shall be entitled to 1 vote.

‘(III) MAJORITY VOTE- All decisions of the Alabama Gulf Coast Recovery Council shall be made by majority vote.

‘(ii) LOUISIANA- In the State of Louisiana, the Coastal Protection and Restoration Authority of Louisiana.

‘(iii) MISSISSIPPI- In the State of Mississippi, the Mississippi Department of Environmental Quality.

‘(F) COMPLIANCE WITH ELIGIBLE ACTIVITIES- If the Secretary of the Treasury determines that an expenditure by a Gulf Coast State or coastal political subdivision of amounts made available under this subsection does not meet 1 of the activities described in subparagraph (B)(i), the Secretary shall make no additional amounts from the Trust Fund available to that Gulf Coast State or coastal political subdivision until such time as an amount equal to the amount expended for the unauthorized use--

‘(i) has been deposited by the Gulf Coast State or coastal political subdivision in the Trust Fund; or

‘(ii) has been authorized by the Secretary of the Treasury for expenditure by the Gulf Coast State or coastal political subdivision for a project or program that meets the requirements of this subsection.

‘(G) COMPLIANCE WITH CONDITIONS- If the Secretary of the Treasury determines that a Gulf Coast State or coastal political subdivision does not meet the requirements of this subsection, including the conditions of subparagraph (D), where applicable, the Secretary of the Treasury shall make no amounts from the Trust Fund available to that Gulf Coast State or coastal political subdivision until all conditions of this subsection are met.

‘(H) PUBLIC INPUT- In meeting any condition of this subsection, a Gulf Coast State may use an appropriate procedure for public consultation in that Gulf Coast State, including consulting with 1 or more established task forces or other entities, to develop recommendations for proposed projects and programs that would restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, coastal wetlands, and economy of the Gulf Coast.

‘(I) PREVIOUSLY APPROVED PROJECTS AND PROGRAMS- A Gulf Coast State or coastal political subdivision shall be considered to have met the conditions of subparagraph (D) for a specific project or program if, before the date of enactment of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012--

‘(i) the Gulf Coast State or coastal political subdivision has established conditions for carrying out projects and programs that are substantively the same as the conditions described in subparagraph (D); and

‘(ii) the applicable project or program carries out 1 or more of the activities described in subparagraph (B)(ii).

‘(J) CONSULTATION WITH COUNCIL- In carrying out this subsection, each Gulf Coast State shall seek the input of the Chairperson of the Council to identify large-scale projects that may be jointly supported by that Gulf Coast State and by the Council pursuant to the Comprehensive Plan with amounts provided under this subsection.

‘(K) NON-FEDERAL MATCHING FUNDS-

‘(i) IN GENERAL- A Gulf Coast State or coastal political subdivision may use, in whole or in part, amounts made available to that Gulf Coast State from the Trust Fund to satisfy the non-Federal share of the cost of any project or program authorized by Federal law that meets the eligible use requirements under subparagraph (B)(i).

‘(ii) EFFECT ON OTHER FUNDS- The use of funds made available from the Trust Fund to satisfy the non-Federal share of the cost of a project or program that meets the requirements of clause (i) shall not affect the priority in which other Federal funds are allocated or awarded.

‘(L) LOCAL PREFERENCE- In awarding contracts to carry out a project or program under this subsection, a Gulf Coast State or coastal political subdivision may give a preference to individuals and companies that reside in, are headquartered in, or are principally engaged in business in, a Gulf Coast State.

‘(M) UNUSED FUNDS- Any Funds not identified in an implementation plan by a State or coastal political subdivision in accordance with subparagraph (D)(iv) shall remain in the Trust Fund until such time as the State or coastal political subdivision to which the funds have been allocated develops and submits a plan identifying uses for those funds in accordance with subparagraph (D)(iv).

‘(N) JUDICIAL REVIEW- If the Secretary of the Treasury determines that a Gulf Coast State or coastal political subdivision does not meet the requirements of this subsection, including the conditions of subparagraph (D), the Gulf Coast State or coastal political subdivision may obtain expedited judicial review within 90 days of that decision in a district court of the United States, of appropriate jurisdiction and venue, that is located within the State seeking such review.

‘(2) COUNCIL ESTABLISHMENT AND ALLOCATION-

‘(A) IN GENERAL- Of the total amount made available in any fiscal year from the Trust Fund, 60 percent shall be disbursed to the Council to carry out the Comprehensive Plan.

‘(B) COUNCIL EXPENDITURES-

‘(i) IN GENERAL- In accordance with this paragraph, the Council shall expend funds made available from the Trust Fund to undertake projects and programs that would restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, coastal wetlands, and economy of the Gulf Coast.

‘(ii) ALLOCATION AND EXPENDITURE PROCEDURES- The Secretary of the Treasury shall develop such conditions, including audit requirements, as the Secretary of the Treasury determines necessary to ensure that amounts disbursed from the Trust Fund to the Council to implement the Comprehensive Plan will be used in accordance with this paragraph.

‘(iii) ADMINISTRATIVE EXPENSES- Of the amounts received by the Council under this subsection, not more than 3 percent may be used for administrative expenses, including staff.

‘(C) GULF COAST ECOSYSTEM RESTORATION COUNCIL-

‘(i) ESTABLISHMENT- There is established as an independent entity in the Federal Government a council to be known as the ‘Gulf Coast Ecosystem Restoration Council’.

‘(ii) MEMBERSHIP- The Council shall consist of the following members, or in the case of a Federal agency, a designee at the level of the Assistant Secretary or the equivalent:

‘(I) The Chair of the Council on Environmental Quality.

‘(II) The Secretary of the Interior.

‘(III) The Secretary of the Army.

‘(IV) The Secretary of Commerce.

‘(V) The Administrator of the Environmental Protection Agency.

‘(VI) The Secretary of Agriculture.

‘(VII) The head of the department in which the Coast Guard is operating.

‘(VIII) The Governor of the State of Alabama.

‘(IX) The Governor of the State of Florida.

‘(X) The Governor of the State of Louisiana.

‘(XI) The Governor of the State of Mississippi.

‘(XII) The Governor of the State of Texas.

‘(iii) ALTERNATE- A Governor appointed to the Council by the President may designate an alternate to represent the Governor on the Council and vote on behalf of the Governor.

‘(iv) CHAIRPERSON- From among the Federal agency members of the Council, the representatives of States on the Council shall select, and the President shall appoint, 1 Federal member to serve as Chairperson of the Council.

‘(v) PRESIDENTIAL APPOINTMENT- All Council members shall be appointed by the President.

‘(vi) COUNCIL ACTIONS-

‘(I) IN GENERAL- Subject to subclause (IV), significant actions by the Council shall require the affirmative vote of the Federal Chairperson and a majority of the State members to be effective.

‘(II) INCLUSIONS- Significant actions include but are not limited to--

‘(aa) approval of a Comprehensive Plan and future revisions to a Comprehensive Plan;

‘(bb) approval of State plans pursuant to paragraph (3)(B)(iv); and

‘(cc) approval of reports to Congress pursuant to clause (vii)(X).

‘(III) QUORUM- A quorum of State members shall be required to be present for the Council to take any significant action.

‘(IV) AFFIRMATIVE VOTE REQUIREMENT DEEMED MET- For approval of State plans pursuant to paragraph (3)(B)(iv), the certification by a State member of the Council that the plan satisfies all requirements of clauses (i) and (ii) of paragraphs (3)(B), when joined by an affirmative vote of the Federal Chairperson of the Council, is deemed to satisfy the requirements for affirmative votes under subclause (I).

‘(V) PUBLIC TRANSPARENCY- Appropriate actions of the Council, including votes on significant actions and associated deliberations, shall be made available to the public.

‘(vii) DUTIES OF COUNCIL- The Council shall--

‘(I) develop the Comprehensive Plan, and future revisions to the Comprehensive Plan;

‘(II) identify as soon as practicable the projects that--

‘(aa) have been authorized prior to the date of enactment of this subsection but not yet commenced; and

‘(bb) if implemented quickly, would restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, barrier islands, dunes, and coastal wetlands of the Gulf Coast ecosystem;

‘(III) coordinate the development of consistent policies, strategies, plans, and activities by Federal agencies, State and local governments, and private sector entities for addressing the restoration and protection of the Gulf Coast ecosystem;

‘(IV) establish such other advisory committee or committees as may be necessary to assist the Council, including a scientific advisory committee and a committee to advise the Council on public policy issues;

‘(V) coordinate scientific and other research associated with restoration of the Gulf Coast ecosystem, including research, observation, and monitoring carried out pursuant to section 1604 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012;

‘(VI) seek to ensure that all policies, strategies, plans, and activities for addressing the restoration of the Gulf Coast ecosystem are based on the best available physical, ecological, and economic data;

‘(VII) make recommendations to address the particular needs of especially economically and socially vulnerable populations;

‘(VIII) develop standard terms to include in contracts for projects and programs awarded pursuant to the Comprehensive Plan that provide a preference to individuals and companies that reside in, are headquartered in, or are principally engaged in business in, a Gulf Coast State;

‘(IX) prepare an integrated financial plan and recommendations for coordinated budget requests for the amounts proposed to be expended by the Federal agencies represented on the Council for projects and programs in the Gulf Coast States;

‘(X) submit to Congress an annual report that--

‘(aa) summarizes the policies, strategies, plans, and activities for addressing the restoration and protection of the Gulf Coast ecosystem;

‘(bb) describes the projects and programs being implemented to restore and protect the Gulf Coast ecosystem; and

‘(cc) makes such recommendations to Congress for modifications of existing laws as the Council determines necessary to implement the Comprehensive Plan; and

‘(XI) submit to Congress a final report on the date on which all funds made available to the Council are expended.

‘(viii) APPLICATION OF FEDERAL ADVISORY COMMITTEE ACT- The Council, or any other advisory committee established under this subsection, shall not be considered an advisory committee under the Federal Advisory Committee Act (5 U.S.C. App.).

‘(D) COMPREHENSIVE PLAN-

‘(i) PROPOSED PLAN-

‘(I) IN GENERAL- Not later than 180 days after the date of enactment of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012, the Chairperson, on behalf of the Council, shall publish a proposed plan to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands of the Gulf Coast ecosystem.

‘(II) CONTENTS- The proposed plan described in subclause (I) shall include and incorporate the findings and information prepared by the President’s Gulf Coast Restoration Task Force.

‘(ii) PUBLICATION-

‘(I) INITIAL PLAN- Not later than 1 year after date of enactment of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 and after notice and opportunity for public comment, the Chairperson, on behalf of the Council and after approval by the Council, shall publish in the Federal Register the initial Comprehensive Plan to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands of the Gulf Coast ecosystem.

‘(II) COOPERATION WITH GULF COAST RESTORATION TASK FORCE- The Council shall develop the initial Comprehensive Plan in close coordination with the President’s Gulf Coast Restoration Task Force.

‘(III) CONSIDERATIONS- In developing the initial Comprehensive Plan and subsequent updates, the Council shall consider all relevant findings, reports, or research prepared or funded by a center of excellence or the Gulf Fisheries and Ecosystem Endowment established pursuant to the Gulf Coast Ecosystem Restoration Science, Monitoring, and Technology Program under section 1604 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.

‘(IV) CONTENTS- The initial Comprehensive Plan shall include--

‘(aa) such provisions as are necessary to fully incorporate in the Comprehensive Plan the strategy, projects, and programs recommended by the President’s Gulf Coast Restoration Task Force;

‘(bb) a list of any project or program authorized prior to the date of enactment of this subsection but not yet commenced, the completion of which would further the purposes and goals of this subsection and of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012;

‘(cc) a description of the manner in which amounts from the Trust Fund projected to be made available to the Council for the succeeding 10 years will be allocated; and

‘(dd) subject to available funding in accordance with clause (iii), a prioritized list of specific projects and programs to be funded and carried out during the 3-year period immediately following the date of publication of the initial Comprehensive Plan, including a table that illustrates the distribution of projects and programs by Gulf Coast State.

‘(V) PLAN UPDATES- The Council shall update--

‘(aa) the Comprehensive Plan every 5 years in a manner comparable to the manner established in this subsection for each 5-year period for which amounts are expected to be made available to the Gulf Coast States from the Trust Fund; and

‘(bb) the 3-year list of projects and programs described in subclause (IV)(dd) annually.

‘(iii) RESTORATION PRIORITIES- Except for projects and programs described in subclause (IV)(bb), in selecting projects and programs to include on the 3-year list described in subclause (IV)(dd), based on the best available science, the Council shall give highest priority to projects that address 1 or more of the following criteria:

‘(I) Projects that are projected to make the greatest contribution to restoring and protecting the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands of the Gulf Coast ecosystem, without regard to geographic location.

‘(II) Large-scale projects and programs that are projected to substantially contribute to restoring and protecting the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands of the Gulf Coast ecosystem.

‘(III) Projects contained in existing Gulf Coast State comprehensive plans for the restoration and protection of natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands of the Gulf Coast ecosystem.

‘(IV) Projects that restore long-term resiliency of the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands most impacted by the Deepwater Horizon oil spill.

‘(E) IMPLEMENTATION-

‘(i) IN GENERAL- The Council, acting through the member agencies and Gulf Coast States, shall expend funds made available from the Trust Fund to carry out projects and programs adopted in the Comprehensive Plan.

‘(ii) ADMINISTRATIVE RESPONSIBILITY-

‘(I) IN GENERAL- Primary authority and responsibility for each project and program included in the Comprehensive Plan shall be assigned by the Council to a Gulf Coast State represented on the Council or a Federal agency.

‘(II) TRANSFER OF AMOUNTS- Amounts necessary to carry out each project or program included in the Comprehensive Plan shall be transferred by the Secretary of the Treasury from the Trust Fund to that Federal agency or Gulf Coast State as the project or program is implemented, subject to such conditions as the Secretary of the Treasury, in consultation with the Secretary of the Interior and the Secretary of Commerce, established pursuant to section 1602 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.

‘(iii) COST SHARING-

‘(I) IN GENERAL- A Gulf Coast State or coastal political subdivision may use, in whole or in part, amounts made available to that Gulf Coast State or coastal political subdivision from the Trust Fund to satisfy the non-Federal share of the cost of carrying a project or program that--

‘(aa) is authorized by other Federal law; and

‘(bb) meets the criteria of subparagraph (D).

‘(II) INCLUSION IN COMPREHENSIVE PLAN- A project or program described in subclause (I) that meets the criteria for inclusion in the Comprehensive Plan described in subparagraph (D) shall be selected and adopted by the Council as part of the Comprehensive Plan in the manner described in subparagraph (D).

‘(F) COORDINATION- The Council and the Federal members of the Council may develop Memorandums of Understanding establishing integrated funding and implementation plans among the member agencies and authorities.

‘(G) TERMINATION- The Council shall terminate on the date on which the report described in subparagraph (C)(vii)(XI) is submitted to Congress.

‘(3) OIL SPILL RESTORATION IMPACT ALLOCATION-

‘(A) IN GENERAL- Except as provided in paragraph (4), of the total amount made available to the Council under paragraph (2) in any fiscal year from the Trust Fund, 50 percent shall be disbursed by the Council as follows:

‘(i) FORMULA- Subject to subparagraph (B), for each Gulf Coast State, the amount disbursed under this paragraph shall be based on a formula established by the Council by regulation that is based on a weighted average of the following criteria:

‘(I) 40 percent based on the proportionate number of miles of shoreline in each Gulf Coast State that experienced oiling as of April 10, 2011, compared to the total number of miles of shoreline that experienced oiling as a result of the Deepwater Horizon oil spill.

‘(II) 40 percent based on the inverse proportion of the average distance from the Deepwater Horizon oil rig to the nearest and farthest point of the shoreline that experienced oiling of each Gulf Coast State.

‘(III) 20 percent based on the average population in the 2010 decennial census of coastal counties bordering the Gulf of Mexico within each Gulf Coast State.

‘(ii) MINIMUM ALLOCATION- The amount disbursed to a Gulf Coast State for each fiscal year under clause (i) shall be at least 5 percent of the total amounts made available under this paragraph.

‘(B) APPROVAL OF PROJECTS AND PROGRAMS-

‘(i) IN GENERAL- The Council shall disburse amounts to the respective Gulf Coast States in accordance with the formula developed under subparagraph (A) for projects, programs, and activities that will improve the ecosystems or economy of the Gulf Coast, subject to the condition that each Gulf Coast State submits a plan for the expenditure of amounts disbursed under this paragraph which meet the following criteria:

‘(I) All projects, programs, and activities included in that plan are eligible activities pursuant to paragraph (1)(B)(i).

‘(II) The projects, programs, and activities included in that plan contribute to the overall economic and ecological recovery of the Gulf Coast.

‘(III) The plan takes into consideration the Comprehensive Plan and is consistent with its goals and objectives, as described in paragraph (2)(B)(i).

‘(ii) FUNDING-

‘(I) IN GENERAL- Except as provided in subclause (II), the plan described in clause (i) may use not more than 25 percent of the funding made available for infrastructure projects eligible under subclauses (X) and (XI) of paragraph (1)(B)(i).

‘(II) EXCEPTION- The plan described in clause (i) may propose to use more than 25 percent of the funding made available for infrastructure projects eligible under subclauses (X) and (XI) of paragraph (1)(B)(i) if the plan certifies that--

‘(aa) ecosystem restoration needs in the State will be addressed by the projects in the proposed plan; and

‘(bb) additional investment in infrastructure is required to mitigate the impacts of the Deepwater Horizon Oil Spill to the ecosystem or economy.

‘(iii) DEVELOPMENT- The plan described in clause (i) shall be developed by--

‘(I) in the State of Alabama, the Alabama Gulf Coast Recovery Council established under paragraph (1)(E)(i);

‘(II) in the State of Florida, a consortia of local political subdivisions that includes at least 1 representative of each disproportionally affected county;

‘(III) in the State of Louisiana, the Coastal Protection and Restoration Authority of Louisiana;

‘(IV) in the State of Mississippi, the Office of the Governor or an appointee of the Office of the Governor; and

‘(V) in the State of Texas, the Office of the Governor or an appointee of the Office of the Governor.

‘(iv) APPROVAL- Not later than 60 days after the date on which a plan is submitted under clause (i), the Council shall approve or disapprove the plan based on the conditions of clause (i).

‘(C) DISAPPROVAL- If the Council disapproves a plan pursuant to subparagraph (B)(iv), the Council shall--

‘(i) provide the reasons for disapproval in writing; and

‘(ii) consult with the State to address any identified deficiencies with the State plan.

‘(D) FAILURE TO SUBMIT ADEQUATE PLAN- If a State fails to submit an adequate plan under this subsection, any funds made available under this subsection shall remain in the Trust Fund until such date as a plan is submitted and approved pursuant to this subsection.

‘(E) JUDICIAL REVIEW- If the Council fails to approve or take action within 60 days on a plan described in subparagraph (B)(iv), the State may obtain expedited judicial review within 90 days of that decision in a district court of the United States, of appropriate jurisdiction and venue, that is located within the State seeking such review.

‘(4) AUTHORIZATION OF INTEREST TRANSFERS-

‘(A) IN GENERAL- Of the total amount made available in any fiscal year from the Trust Fund, an amount equal to the interest earned by the Trust Fund and proceeds from investments made by the Trust Fund in the preceding fiscal year--

‘(i) 50 percent shall be transferred to the National Endowment for Oceans in subparagraph (B); and

‘(ii) 50 percent shall be transferred to the Gulf of Mexico Research Endowment in subparagraph (C).

‘(B) NATIONAL ENDOWMENT FOR THE OCEANS-

‘(i) ESTABLISHMENT-

‘(I) IN GENERAL- There is established in the Treasury of the United States a trust fund to be known as the ‘National Endowment for the Oceans’, consisting of such amounts as may be appropriated or credited to the National Endowment for the Oceans.

‘(II) INVESTMENT- Amounts in the National Endowment for the Oceans shall be invested in accordance with section 9602 of the Internal Revenue Code of 1986, and any interest on, and proceeds from, any such investment shall be available for expenditure in accordance with this subparagraph.

‘(ii) TRUSTEE- The trustee for the National Endowment for the Oceans shall be the Secretary of Commerce.

‘(iii) ALLOCATION OF FUNDS-

‘(I) IN GENERAL- Each fiscal year, the Secretary shall allocate, at a minimum, an amount equal to the interest earned by the National Endowment for the Oceans in the preceding fiscal year, and may distribute an amount equal to up to 10 percent of the total amounts in the National Endowment for the Oceans--

‘(aa) to allocate funding to coastal states (as defined in section 304 of the Marine Resources and Engineering Development Act of 1966 (16 U.S.C. 1453)) and affected Indian tribes;

‘(bb) to make grants to regional ocean and coastal planning bodies; and

‘(cc) to develop and implement a National Grant Program for Oceans and Coastal Waters.

‘(II) PROGRAM ADJUSTMENTS- Each fiscal year where the amount described in subparagraph (A)(i) does not exceed $100,000,000, the Secretary may elect to fund only the grant program established in subclause (I)(cc).

‘(iv) ELIGIBLE ACTIVITIES- Funds deposited in the National Endowment for the Oceans may be allocated by the Secretary only to fund grants for programs and activities intended to restore, protect, maintain, or understand living marine resources and their habitats and resources in ocean and coastal waters (as defined in section 304 of the Marine Resources and Engineering Development Act of 1966 (16 U.S.C. 1453)), including baseline scientific research, ocean observing, and other programs and activities carried out in coordination with Federal and State departments or agencies, that are consistent with Federal environmental laws and that avoid environmental degradation.

‘(v) APPLICATION- To be eligible to receive a grant under clause (iii)(I), an entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines to be appropriate.

‘(vi) FUNDING FOR COASTAL STATES- The Secretary shall allocate funding among States as follows:

‘(I) 50 percent of the funds shall be allocated equally among coastal States.

‘(II) 25 percent of the funds shall be allocated based on tidal shoreline miles.

‘(III) 25 percent of the funds shall be allocated based on the coastal population density of a coastal State.

‘(IV) No State shall be allocated more than 10 percent of the total amount of funds available for allocation among coastal States for any fiscal year.

‘(V) No territory shall be allocated more than 1 percent of the total amount of funds available for allocation among coastal States for any fiscal year.

‘(C) GULF OF MEXICO RESEARCH ENDOWMENT-

‘(i) IN GENERAL- There is established in the Treasury of the United States a trust fund to be known as the ‘Gulf of Mexico Research Endowment’, to be administered by the Secretary of Commerce, solely for use in providing long-term funding in accordance with section 1604 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.

‘(ii) INVESTMENT- Amounts in the Gulf of Mexico Research Endowment shall be invested in accordance with section 9602 of the Internal Revenue Code of 1986, and, after adjustment for inflation so as to maintain the value of the principal, any interest on, and proceeds from, any such investment shall be available for expenditure and shall be allocated in equal portions to the Gulf Coast Ecosystem Restoration Science, Monitoring, and Technology Program and Fisheries Endowment established in section 1604 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.’.

SEC. 1604. GULF COAST ECOSYSTEM RESTORATION SCIENCE, OBSERVATION, MONITORING, AND TECHNOLOGY PROGRAM.

(a) Definitions- In this section:

(1) ADMINISTRATOR- The term ‘Administrator’ means the Administrator of the National Oceanic and Atmospheric Administration.

(2) FISHERIES AND ECOSYSTEM ENDOWMENT- The term ‘Fisheries and Ecosystem Endowment’ means the endowment established by subsection (d).

(3) PROGRAM- The term ‘Program’ means the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology Program established by subsection (b).

(b) Establishment of Program- There is established within the National Oceanic and Atmospheric Administration a program to be known as the ‘Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology Program’, to be carried out by the Administrator.

(c) Centers of Excellence-

(1) IN GENERAL- In carrying out the Program, the Administrator, in consultation with other Federal agencies with expertise in the discipline of a center of excellence, shall make grants in accordance with paragraph (2) to establish and operate 5 centers of excellence, 1 of which shall be located in each of the States of Alabama, Florida, Louisiana, Mississippi, and Texas.

(2) GRANTS-

(A) IN GENERAL- The Administrator shall use the amounts made available to carry out this section to award competitive grants to nongovernmental entities and consortia in the Gulf Coast region (including public and private institutions of higher education) for the establishment of centers of excellence as described in paragraph (1).

(B) APPLICATION- To be eligible to receive a grant under this paragraph, an entity or consortium described in subparagraph (A) shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator determines to be appropriate.

(C) PRIORITY- In awarding grants under this paragraph, the Administrator shall give priority to entities and consortia that demonstrate the ability to establish the broadest cross-section of participants with interest and expertise in any discipline described in paragraph (3) on which the proposal of the center of excellence will be focused.

(3) DISCIPLINES- Each center of excellence shall focus on science, technology, and monitoring in at least 1 of the following disciplines:

(A) Coastal and deltaic sustainability, restoration and protection; including solutions and technology that allow citizens to live safely and sustainably in a coastal delta.

(B) Coastal fisheries and wildlife ecosystem research and monitoring.

(C) Offshore energy development, including research and technology to improve the sustainable and safe development of energy resources.

(D) Sustainable and resilient growth, economic and commercial development in the Gulf Coast.

(E) Comprehensive observation, monitoring, and mapping of the Gulf of Mexico.

(4) COORDINATION WITH OTHER PROGRAMS- The Administrator shall develop a plan for the coordination of projects and activities between the Program and other existing Federal and State science and technology programs in the States of Alabama, Florida, Louisiana, Mississippi, and Texas, as well as between the centers of excellence.

(d) Establishment of Fisheries and Ecosystem Endowment-

(1) IN GENERAL- Not later than 180 days after the date of enactment of this Act, the Council shall establish a fishery and ecosystem endowment to ensure, to the maximum extent practicable, the long-term sustainability of the ecosystem, fish stocks, fish habitat and the recreational, commercial, and charter fishing industry in the Gulf of Mexico.

(2) EXPENDITURE OF FUNDS- For each fiscal year, amounts made available to carry out this subsection may be expended for, with respect to the Gulf of Mexico--

(A) marine and estuarine research;

(B) marine and estuarine ecosystem monitoring and ocean observation;

(C) data collection and stock assessments;

(D) pilot programs for--

(i) fishery independent data; and

(ii) reduction of exploitation of spawning aggregations; and

(E) cooperative research.

(3) ADMINISTRATION AND IMPLEMENTATION- The Fisheries and Ecosystem Endowment shall be administered by the Administrator of the National Oceanic and Atmospheric Administration, in consultation with the Director of the United States Fish and Wildlife Service, with guidance provided by the Regional Gulf of Mexico Fishery Management Council.

(4) SPECIES INCLUDED- The Fisheries and Ecosystem Endowment will include all marine, estuarine, aquaculture, and fish and wildlife species in State and Federal waters of the Gulf of Mexico.

(5) RESEARCH PRIORITIES- In distributing funding under this subsection, priority shall be given to integrated, long-term projects that--

(A) build on, or are coordinated with, related research activities; and

(B) address current or anticipated marine ecosystem, fishery, or wildlife management information needs.

(6) DUPLICATION AND COORDINATION- In carrying out this subsection, the Administrator shall seek to avoid duplication of other research and monitoring activities and coordinate with existing research and monitoring programs, including the Integrated Coastal and Ocean Observation System Act of 2009 (33 U.S.C. 3601 et seq.).

(e) Funding-

(1) IN GENERAL- Except as provided in subsection (t)(4) of section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321), of the total amount made available for each fiscal year for the Gulf Coast Restoration Trust Fund established under section 1602, 5 percent shall be allocated in equal portions to the Program and Fisheries and Ecosystem Endowment established by this section.

(2) ADMINISTRATIVE EXPENSES- Of the amounts received by the National Oceanic and Atmospheric Administration to carry out this section, not more than 3 percent may be used for administrative expenses.

SEC. 1605. EFFECT.

(a) In General- Nothing in this subtitle or any amendment made by this subtitle--

(1) supersedes or otherwise affects any provision of Federal law, including, in particular, laws providing recovery for injury to natural resources under the Oil Pollution Act of 1990 (33 U.S.C. 2701 et seq.) and laws for the protection of public health and the environment; or

(2) applies to any fine collected under section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321) for any incident other than the Deepwater Horizon oil spill.

(b) Use of Funds- Funds made available under this subtitle may be used only for eligible activities specifically authorized by this subtitle.

Subtitle G--Land and Water Conservation Fund

SEC. 1701. LAND AND WATER CONSERVATION FUND.

(a) Authorization- Section 2 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5) is amended--

(1) in the matter preceding subsection (a), by striking ‘September 30, 2015’ and inserting ‘September 30, 2022’; and

(2) in subsection (c)(1), by striking ‘through September 30, 2015’ and inserting ‘September 30, 2022’.

(b) Funding- Section 3 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6) is amended to read as follows:

‘SEC. 3. AVAILABILITY OF FUNDS.

‘(a) Funding-

‘(1) FISCAL YEARS 2013 AND 2014- For each of fiscal years 2013 and 2014--

‘(A) $700,000,000 of amounts covered into the fund under section 2 shall be available for expenditure, without further appropriation or fiscal year limitation, to carry out the purposes of this Act; and

‘(B) the remainder of amounts covered into the fund shall be available subject to appropriations, which may be made without fiscal year limitation.

‘(2) FISCAL YEARS 2015 THROUGH 2022- For each of fiscal years 2015 through 2022, amounts covered into the fund under section 2 shall be available for expenditure to carry out the purposes of this Act subject to appropriations, which may be made without fiscal year limitation.

‘(b) Uses- Amounts made available for obligation or expenditure from the fund may be obligated or expended only as provided in this Act.

‘(c) Willing Sellers- In using amounts made available under subsection (a)(1)(A), the Secretary shall only acquire land or interests in land by purchase, exchange, or donation from a willing seller.

‘(d) Additional Amounts- Amounts made available under subsection (a)(1)(A) shall be in addition to amounts made available to the fund under section 105 of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432).

‘(e) Allocation Authority- Appropriation Acts may provide for the allocation of amounts covered into the fund under section 2.’.

(c) Allocation of Funds- Section 5 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-7) is amended--

(1) in the first sentence, by inserting ‘or expenditures’ after ‘appropriations’;

(2) in the second sentence--

(A) by inserting ‘or expenditures’ after ‘appropriations’; and

(B) by inserting before the period at the end the following: ‘, including the amounts to be allocated from the fund for Federal and State purposes’; and

(3) by striking ‘Those appropriations from’ and all that follows through the end of the section.

(d) Conforming Amendments- Section 6(b) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8(b)) is amended--

(1) in the matter preceding paragraph (1), by inserting ‘or expended’ after ‘appropriated’;

(2) in paragraph (1)--

(A) by inserting ‘or expenditures’ after ‘appropriations’; and

(B) by striking ‘; and’ and inserting a period; and

(3) in the first sentence of paragraph (2), by inserting ‘or expenditure’ after ‘appropriation’.

(e) Public Access- Section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-9) is amended--

(1) in subsection (a)--

(A) in the matter preceding paragraph (1), by inserting ‘or expended’ after ‘appropriated’; and

(B) in paragraph (3), by inserting ‘or expenditures’ after ‘such appropriations’;

(2) in subsection (b)--

(A) in the first sentence, by inserting ‘or expenditures’ after ‘Appropriations’; and

(B) in the proviso, by inserting ‘or expenditures’ after ‘appropriations’;

(3) in the first sentence of subsection (c)(1)--

(A) by inserting ‘or expended’ after ‘appropriated’; and

(B) by inserting ‘or expenditures’ after ‘appropriations’; and

(4) by adding at the end the following:

‘(d) Public Access- Not less than 1.5 percent of the annual authorized funding amount shall be made available each year for projects that secure recreational public access to existing Federal public land for hunting, fishing, and other recreational purposes.’.

Subtitle H--Offsets

SEC. 1801. DELAY IN APPLICATION OF WORLDWIDE INTEREST.

(a) In General- Paragraphs (5)(D) and (6) of section 864(f) of the Internal Revenue Code of 1986 are each amended by striking ‘December 31, 2020’ and inserting ‘December 31, 2021.’

(b) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.

TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION

SEC. 2001. SHORT TITLE.

This title may be cited as the ‘America Fast Forward Financing Innovation Act of 2011’.

SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT AMENDMENTS.

Sections 601 through 609 of title 23, United States Code, are amended to read as follows:

‘Sec. 601. Generally applicable provisions

‘(a) Definitions- In this chapter, the following definitions apply:

‘(1) ELIGIBLE PROJECT COSTS- The term ‘eligible project costs’ means amounts substantially all of which are paid by, or for the account of, an obligor in connection with a project, including the cost of--

‘(A) development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities;

‘(B) construction, reconstruction, rehabilitation, replacement, and acquisition of real property (including land relating to the project and improvements to land), environmental mitigation, construction contingencies, and acquisition of equipment; and

‘(C) capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction.

‘(2) FEDERAL CREDIT INSTRUMENT- The term ‘Federal credit instrument’ means a secured loan, loan guarantee, or line of credit authorized to be made available under this chapter with respect to a project.

‘(3) INVESTMENT-GRADE RATING- The term ‘investment-grade rating’ means a rating of BBB minus, Baa3, bbb minus, BBB (low), or higher assigned by a rating agency to project obligations.

‘(4) LENDER- The term ‘lender’ means any non-Federal qualified institutional buyer (as defined in section 230.144A(a) of title 17, Code of Federal Regulations (or any successor regulation), known as Rule 144A(a) of the Securities and Exchange Commission and issued under the Securities Act of 1933 (15 U.S.C. 77a et seq.)), including--

‘(A) a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986) that is a qualified institutional buyer; and

‘(B) a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986) that is a qualified institutional buyer.

‘(5) LETTER OF INTEREST- The term ‘letter of interest’ means a letter submitted by a potential applicant prior to an application for credit assistance in a format prescribed by the Secretary on the website of the TIFIA program, which--

‘(A) describes the project and the location, purpose, and cost of the project;

‘(B) outlines the proposed financial plan, including the requested credit assistance and the proposed obligor;

‘(C) provides a status of environmental review; and

‘(D) provides information regarding satisfaction of other eligibility requirements of the TIFIA program.

‘(6) LINE OF CREDIT- The term ‘line of credit’ means an agreement entered into by the Secretary with an obligor under section 604 to provide a direct loan at a future date upon the occurrence of certain events.

‘(7) LIMITED BUYDOWN- The term ‘limited buydown’ means, subject to the conditions described in section 603(b)(4)(C), a buydown of the interest rate by the Secretary and by the obligor if the interest rate has increased between--

‘(A)(i) the date on which a project application acceptable to the Secretary is submitted; or

‘(ii) the date on which the Secretary entered into a master credit agreement; and

‘(B) the date on which the Secretary executes the Federal credit instrument.

‘(8) LOAN GUARANTEE- The term ‘loan guarantee’ means any guarantee or other pledge by the Secretary to pay all or part of the principal of and interest on a loan or other debt obligation issued by an obligor and funded by a lender.

‘(9) MASTER CREDIT AGREEMENT- The term ‘master credit agreement’ means an agreement to extend credit assistance for a program of projects secured by a common security pledge (which shall receive an investment grade rating from a rating agency), or for a single project covered under section 602(b)(2) that would--

‘(A) make contingent commitments of 1 or more secured loans or other Federal credit instruments at future dates, subject to the availability of future funds being made available to carry out this chapter;

‘(B) establish the maximum amounts and general terms and conditions of the secured loans or other Federal credit instruments;

‘(C) identify the 1 or more dedicated non-Federal revenue sources that will secure the repayment of the secured loans or secured Federal credit instruments;

‘(D) provide for the obligation of funds for the secured loans or secured Federal credit instruments after all requirements have been met for the projects subject to the master credit agreement, including--

‘(i) completion of an environmental impact statement or similar analysis required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

‘(ii) compliance with such other requirements as are specified in section 602(c); and

‘(iii) the availability of funds to carry out this chapter; and

‘(E) require that contingent commitments result in a financial close and obligation of credit assistance not later than 3 years after the date of entry into the master credit agreement, or release of the commitment, unless otherwise extended by the Secretary.

‘(10) OBLIGOR- The term ‘obligor’ means a party that--

‘(A) is primarily liable for payment of the principal of or interest on a Federal credit instrument; and

‘(B) may be a corporation, partnership, joint venture, trust, or governmental entity, agency, or instrumentality.

‘(11) PROJECT- The term ‘project’ means--

‘(A) any surface transportation project eligible for Federal assistance under this title or chapter 53 of title 49;

‘(B) a project for an international bridge or tunnel for which an international entity authorized under Federal or State law is responsible;

‘(C) a project for intercity passenger bus or rail facilities and vehicles, including facilities and vehicles owned by the National Railroad Passenger Corporation and components of magnetic levitation transportation systems; and

‘(D) a project that--

‘(i) is a project--

‘(I) for a public freight rail facility or a private facility providing public benefit for highway users by way of direct freight interchange between highway and rail carriers;

‘(II) for an intermodal freight transfer facility;

‘(III) for a means of access to a facility described in subclause (I) or (II);

‘(IV) for a service improvement for a facility described in subclause (I) or (II) (including a capital investment for an intelligent transportation system); or

‘(V) that comprises a series of projects described in subclauses (I) through (IV) with the common objective of improving the flow of goods;

‘(ii) may involve the combining of private and public sector funds, including investment of public funds in private sector facility improvements;

‘(iii) if located within the boundaries of a port terminal, includes only such surface transportation infrastructure modifications as are necessary to facilitate direct intermodal interchange, transfer, and access into and out of the port; and

‘(iv) is composed of related highway, surface transportation, transit, rail, or intermodal capital improvement projects eligible for assistance under this subsection in order to meet the eligible project cost threshold under section 602, by grouping related projects together for that purpose, on the condition that the credit assistance for the projects is secured by a common pledge.

‘(12) PROJECT OBLIGATION- The term ‘project obligation’ means any note, bond, debenture, or other debt obligation issued by an obligor in connection with the financing of a project, other than a Federal credit instrument.

‘(13) RATING AGENCY- The term ‘rating agency’ means a credit rating agency registered with the Securities and Exchange Commission as a nationally recognized statistical rating organization (as that term is defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).

‘(14) RURAL INFRASTRUCTURE PROJECT- The term ‘rural infrastructure project’ means a surface transportation infrastructure project either--

‘(A) located in any area other than an urbanized area that has a population of greater than 250,000 inhabitants; or

‘(B) connects a rural area to a city with a population of less than 250,000 inhabitants within the city limits.

‘(15) SECURED LOAN- The term ‘secured loan’ means a direct loan or other debt obligation issued by an obligor and funded by the Secretary in connection with the financing of a project under section 603.

‘(16) STATE- The term ‘State’ has the meaning given the term in section 101.

‘(17) SUBSIDY AMOUNT- The term ‘subsidy amount’ means the amount of budget authority sufficient to cover the estimated long-term cost to the Federal Government of a Federal credit instrument, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays in accordance with the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

‘(18) SUBSTANTIAL COMPLETION- The term ‘substantial completion’ means--

‘(A) the opening of a project to vehicular or passenger traffic; or

‘(B) a comparable event, as determined by the Secretary and specified in the credit agreement.

‘(19) TIFIA PROGRAM- The term ‘TIFIA program’ means the transportation infrastructure finance and innovation program of the Department.

‘(20) CONTINGENT COMMITMENT- The term ‘contingent commitment’ means a commitment to obligate an amount from future available budget authority that is--

‘(A) contingent upon those funds being made available in law at a future date; and

‘(B) not an obligation of the Federal Government.

‘(b) Treatment of Chapter- For purposes of this title, this chapter shall be treated as being part of chapter 1.

‘Sec. 602. Determination of eligibility and project selection

‘(a) Eligibility- A project shall be eligible to receive credit assistance under this chapter if the entity proposing to carry out the project submits a letter of interest prior to submission of a formal application for the project, and the project meets the following criteria:

‘(1) CREDITWORTHINESS-

‘(A) IN GENERAL- The project shall satisfy applicable creditworthiness standards, which, at a minimum, includes--

‘(i) a rate covenant, if applicable;

‘(ii) adequate coverage requirements to ensure repayment;

‘(iii) an investment grade rating from at least 2 rating agencies on debt senior to the Federal credit instrument; and

‘(iv) a rating from at least 2 rating agencies on the Federal credit instrument, subject to the condition that, with respect to clause (iii), if the senior debt and Federal credit instrument is for an amount less than $75,000,000 or for a rural infrastructure project or intelligent transportation systems project, 1 rating agency opinion for each of the senior debt and Federal credit instrument shall be sufficient.

‘(B) SENIOR DEBT- Notwithstanding subparagraph (A), in a case in which the Federal credit instrument is the senior debt, the Federal credit instrument shall be required to receive an investment grade rating from at least 2 rating agencies, unless the credit instrument is for a rural infrastructure project or intelligent transportation systems project, in which case 1 rating agency opinion shall be sufficient.

‘(2) INCLUSION IN TRANSPORTATION PLANS AND PROGRAMS- The project shall satisfy the applicable planning and programming requirements of sections 134 and 135 at such time as an agreement to make available a Federal credit instrument is entered into under this chapter.

‘(3) APPLICATION- A State, local government, public authority, public-private partnership, or any other legal entity undertaking the project and authorized by the Secretary, shall submit a project application acceptable to the Secretary.

‘(4) ELIGIBLE PROJECT COSTS-

‘(A) IN GENERAL- Except as provided in subparagraph (B), to be eligible for assistance under this chapter, a project shall have eligible project costs that are reasonably anticipated to equal or exceed the lesser of--

‘(i)(I) $50,000,000; or

‘(II) in the case of a rural infrastructure project, $25,000,000; or

‘(ii) 33 1/3 percent of the amount of Federal highway assistance funds apportioned for the most recently completed fiscal year to the State in which the project is located.

‘(B) INTELLIGENT TRANSPORTATION SYSTEM PROJECTS- In the case of a project principally involving the installation of an intelligent transportation system, eligible project costs shall be reasonably anticipated to equal or exceed $15,000,000.

‘(5) DEDICATED REVENUE SOURCES- The Federal credit instrument shall be repayable, in whole or in part, from tolls, user fees, or other dedicated revenue sources that also secure the project obligations.

‘(6) PUBLIC SPONSORSHIP OF PRIVATE ENTITIES- In the case of a project that is undertaken by an entity that is not a State or local government or an agency or instrumentality of a State or local government, the project that the entity is undertaking shall be publicly sponsored as provided in paragraph (2).

‘(b) Selection Among Eligible Projects-

‘(1) ESTABLISHMENT- The Secretary shall establish a rolling application process in which projects that are eligible to receive credit assistance under subsection (a) shall receive credit assistance on terms acceptable to the Secretary, if adequate funds are available to cover the subsidy costs associated with the Federal credit instrument.

‘(2) ADEQUATE FUNDING NOT AVAILABLE-

‘If the Secretary fully obligates funding to eligible projects in a given fiscal year, and adequate funding is not available to fund a credit instrument, a project sponsor of an eligible project may elect to enter into a master credit agreement and wait until the following fiscal year or until additional funds are available to receive credit assistance.

‘(3) PRELIMINARY RATING OPINION LETTER- The Secretary shall require each project applicant to provide a preliminary rating opinion letter from at least 1 rating agency--

‘(A) indicating that the senior obligations of the project, which may be the Federal credit instrument, have the potential to achieve an investment-grade rating; and

‘(B) including a preliminary rating opinion on the Federal credit instrument.

‘(c) Federal Requirements-

‘(1) IN GENERAL- In addition to the requirements of this title for highway projects, chapter 53 of title 49 for transit projects, and section 5333(a) of title 49 for rail projects, the following provisions of law shall apply to funds made available under this chapter and projects assisted with the funds:

‘(A) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).

‘(B) The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(C) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

‘(2) NEPA- No funding shall be obligated for a project that has not received an environmental Categorical Exclusion, Finding of No Significant Impact, or Record of Decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘Sec. 603. Secured loans

‘(a) In General-

‘(1) AGREEMENTS- Subject to paragraphs (2) through (4), the Secretary may enter into agreements with 1 or more obligors to make secured loans, the proceeds of which shall be used--

‘(A) to finance eligible project costs of any project selected under section 602;

‘(B) to refinance interim construction financing of eligible project costs of any project selected under section 602;

‘(C) to refinance existing loan agreements for rural infrastructure projects; or

‘(D) to refinance long-term project obligations or Federal credit instruments if the refinancing provides additional funding capacity for the completion, enhancement, or expansion of any project that--

‘(i) is selected under section 602; or

‘(ii) otherwise meets the requirements of section 602.

‘(2) LIMITATION ON REFINANCING OF INTERIM CONSTRUCTION FINANCING- A loan under paragraph (1) shall not refinance interim construction financing under paragraph (1)(B) later than 1 year after the date of substantial completion of the project.

‘(3) RISK ASSESSMENT- Before entering into an agreement under this subsection, the Secretary, in consultation with the Director of the Office of Management and Budget, shall determine an appropriate capital reserve subsidy amount for each secured loan, taking into account each rating letter provided by an agency under section 602(b)(3)(B).

‘(b) Terms and Limitations-

‘(1) IN GENERAL- A secured loan under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate.

‘(2) MAXIMUM AMOUNT- The amount of the secured loan shall not exceed the lesser of 49 percent of the reasonably anticipated eligible project costs or, if the secured loan does not receive an investment grade rating, the amount of the senior project obligations.

‘(3) PAYMENT- The secured loan--

‘(A) shall--

‘(i) be payable, in whole or in part, from tolls, user fees, or other dedicated revenue sources that also secure the senior project obligations; and

‘(ii) include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and

‘(B) may have a lien on revenues described in subparagraph (A) subject to any lien securing project obligations.

‘(4) INTEREST RATE-

‘(A) IN GENERAL- Except as provided in subparagraphs (B) and (C), the interest rate on the secured loan shall be not less than the yield on United States Treasury securities of a similar maturity to the maturity of the secured loan on the date of execution of the loan agreement.

‘(B) RURAL INFRASTRUCTURE PROJECTS- A loan offered to a rural infrastructure project under this chapter shall be at 1/2 of the Treasury Rate.

‘(C) LIMITED BUYDOWNS- A limited buydown is subject to the following conditions:

‘(i) The interest rate under the agreement may not be lowered by more than the lower of--

‘(I) 1 1/2 percentage points (150 basis points); or

‘(II) the amount of the increase in the interest rate.

‘(ii) The Secretary may pay up to 50 percent of the cost of the limited buydown, and the obligor shall pay the balance of the cost of the limited buydown.

‘(iii) Not more than 5 percent of the funding made available annually to carry out this chapter may be used to carry out limited buydowns.

‘(5) MATURITY DATE- The final maturity date of the secured loan shall be the lesser of--

‘(A) 35 years after the date of substantial completion of the project; or

‘(B) if the useful life of the capital asset being financed is of a lesser period, the useful life of the asset.

‘(6) NONSUBORDINATION-

‘(A) IN GENERAL- Except as provided in subparagraph (B), the secured loan shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy, insolvency, or liquidation of the obligor.

‘(B) PRE-EXISTING INDENTURE-

‘(i) IN GENERAL- The Secretary shall waive subparagraph (A) for public agency borrowers that are financing ongoing capital programs and have outstanding senior bonds under a pre-existing indenture, if--

‘(I) the secured loan is rated in the A-category or higher;

‘(II) the secured loan is secured and payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues; and

‘(III) the TIFIA program share of eligible project costs is 33 percent or less.

‘(ii) LIMITATION- If the Secretary waives the nonsubordination requirement under this subparagraph--

‘(I) the maximum credit subsidy that will be paid by the Federal Government shall be limited to 10 percent of the principal amount of the secured loan; and

‘(II) the obligor shall be responsible for paying the remainder of the subsidy cost.

‘(7) FEES- The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of making a secured loan under this section.

‘(8) NON-FEDERAL SHARE- The proceeds of a secured loan under this chapter may be used for any non-Federal share of project costs required under this title or chapter 53 of title 49, if the loan is repayable from non-Federal funds.

‘(9) MAXIMUM FEDERAL INVOLVEMENT- The total Federal assistance provided on a project receiving a loan under this chapter shall not exceed 80 percent of the total project cost.

‘(c) Repayment-

‘(1) SCHEDULE- The Secretary shall establish a repayment schedule for each secured loan under this section based on the projected cash flow from project revenues and other repayment sources, and the useful life of the project.

‘(2) COMMENCEMENT- Scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than 5 years after the date of substantial completion of the project.

‘(3) DEFERRED PAYMENTS-

‘(A) AUTHORIZATION- If, at any time after the date of substantial completion of the project, the project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the secured loan, the Secretary may, subject to subparagraph (C), allow the obligor to add unpaid principal and interest to the outstanding balance of the secured loan.

‘(B) INTEREST- Any payment deferred under subparagraph (A) shall--

‘(i) continue to accrue interest in accordance with subsection (b)(4) until fully repaid; and

‘(ii) be scheduled to be amortized over the remaining term of the loan.

‘(C) CRITERIA-

‘(i) IN GENERAL- Any payment deferral under subparagraph (A) shall be contingent on the project meeting criteria established by the Secretary.

‘(ii) REPAYMENT STANDARDS- The criteria established under clause (i) shall include standards for reasonable assurance of repayment.

‘(4) PREPAYMENT-

‘(A) USE OF EXCESS REVENUES- Any excess revenues that remain after satisfying scheduled debt service requirements on the project obligations and secured loan and all deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing project obligations may be applied annually to prepay the secured loan without penalty.

‘(B) USE OF PROCEEDS OF REFINANCING- The secured loan may be prepaid at any time without penalty from the proceeds of refinancing from non-Federal funding sources.

‘(d) Sale of Secured Loans-

‘(1) IN GENERAL- Subject to paragraph (2), as soon as practicable after substantial completion of a project and after notifying the obligor, the Secretary may sell to another entity or reoffer into the capital markets a secured loan for the project if the Secretary determines that the sale or reoffering can be made on favorable terms.

‘(2) CONSENT OF OBLIGOR- In making a sale or reoffering under paragraph (1), the Secretary may not change the original terms and conditions of the secured loan without the written consent of the obligor.

‘(e) Loan Guarantees-

‘(1) IN GENERAL- The Secretary may provide a loan guarantee to a lender in lieu of making a secured loan if the Secretary determines that the budgetary cost of the loan guarantee is substantially the same as that of a secured loan.

‘(2) TERMS- The terms of a guaranteed loan shall be consistent with the terms set forth in this section for a secured loan, except that the rate on the guaranteed loan and any prepayment features shall be negotiated between the obligor and the lender, with the consent of the Secretary.

‘Sec. 604. Lines of credit

‘(a) In General-

‘(1) AGREEMENTS- Subject to paragraphs (2) through (4), the Secretary may enter into agreements to make available lines of credit to 1 or more obligors in the form of direct loans to be made by the Secretary at future dates on the occurrence of certain events for any project selected under section 602.

‘(2) USE OF PROCEEDS- The proceeds of a line of credit made available under this section shall be available to pay debt service on project obligations issued to finance eligible project costs, extraordinary repair and replacement costs, operation and maintenance expenses, and costs associated with unexpected Federal or State environmental restrictions.

‘(3) RISK ASSESSMENT- Before entering into an agreement under this subsection, the Secretary, in consultation with the Director of the Office of Management and Budget and each rating agency providing a preliminary rating opinion letter under section 602(b)(3), shall determine an appropriate capital reserve subsidy amount for each line of credit, taking into account the rating opinion letter.

‘(4) INVESTMENT-GRADE RATING REQUIREMENT- The funding of a line of credit under this section shall be contingent on the senior obligations of the project receiving an investment-grade rating from 2 rating agencies.

‘(b) Terms and Limitations-

‘(1) IN GENERAL- A line of credit under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate.

‘(2) MAXIMUM AMOUNTS- The total amount of the line of credit shall not exceed 33 percent of the reasonably anticipated eligible project costs.

‘(3) DRAWS- Any draw on the line of credit shall represent a direct loan and shall be made only if net revenues from the project (including capitalized interest but not including reasonably required financing reserves) are insufficient to pay the costs specified in subsection (a)(2).

‘(4) INTEREST RATE- Except as otherwise provided in subparagraphs (B) and (C) of section 603(b)(4), the interest rate on a direct loan resulting from a draw on the line of credit shall be not less than the yield on 30-year United States Treasury securities as of the date of execution of the line of credit agreement.

‘(5) SECURITY- The line of credit--

‘(A) shall--

‘(i) be payable, in whole or in part, from tolls, user fees, or other dedicated revenue sources that also secure the senior project obligations; and

‘(ii) include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and

‘(B) may have a lien on revenues described in subparagraph (A) subject to any lien securing project obligations.

‘(6) PERIOD OF AVAILABILITY- The full amount of the line of credit, to the extent not drawn upon, shall be available during the period beginning on the date of substantial completion of the project and ending not later than 10 years after that date.

‘(7) RIGHTS OF THIRD-PARTY CREDITORS-

‘(A) AGAINST FEDERAL GOVERNMENT- A third-party creditor of the obligor shall not have any right against the Federal Government with respect to any draw on the line of credit.

‘(B) ASSIGNMENT- An obligor may assign the line of credit to 1 or more lenders or to a trustee on the behalf of the lenders.

‘(8) NONSUBORDINATION-

‘(A) IN GENERAL- Except as provided in subparagraphs (B) and (C), a direct loan under this section shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy, insolvency, or liquidation of the obligor.

‘(B) PRE-EXISTING INDENTURE-

‘(i) IN GENERAL- The Secretary shall waive subparagraph (A) for public agency borrowers that are financing ongoing capital programs and have outstanding senior bonds under a pre-existing indenture, if--

‘(I) the line of credit is rated in the A-category or higher;

‘(II) the TIFIA program loan resulting from a draw on the line of credit is payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues; and

‘(III) the TIFIA program share of eligible project costs is 33 percent or less.

‘(ii) LIMITATION- If the Secretary waives the nonsubordination requirement under this subparagraph--

‘(I) the maximum credit subsidy that will be paid by the Federal Government shall be limited to 10 percent of the principal amount of the secured loan; and

‘(II) the obligor shall be responsible for paying the remainder of the subsidy cost.

‘(9) FEES- The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of providing a line of credit under this section.

‘(10) RELATIONSHIP TO OTHER CREDIT INSTRUMENTS- A project that receives a line of credit under this section shall not also receive a secured loan or loan guarantee under section 603 in an amount that, combined with the amount of the line of credit, exceeds 49 percent of eligible project costs.

‘(c) Repayment-

‘(1) TERMS AND CONDITIONS- The Secretary shall establish repayment terms and conditions for each direct loan under this section based on the projected cash flow from project revenues and other repayment sources, and the useful life of the asset being financed.

‘(2) TIMING- All repayments of principal or interest on a direct loan under this section shall be scheduled to commence not later than 5 years after the end of the period of availability specified in subsection (b)(6) and to conclude, with full repayment of principal and interest, by the date that is 25 years after the end of the period of availability specified in subsection (b)(6).

‘Sec. 605. Program administration

‘(a) Requirement- The Secretary shall establish a uniform system to service the Federal credit instruments made available under this chapter.

‘(b) Fees- The Secretary may collect and spend fees, contingent upon authority being provided in appropriations Acts, at a level that is sufficient to cover--

‘(1) the costs of services of expert firms retained pursuant to subsection (d); and

‘(2) all or a portion of the costs to the Federal Government of servicing the Federal credit instruments.

‘(c) Servicer-

‘(1) IN GENERAL- The Secretary may appoint a financial entity to assist the Secretary in servicing the Federal credit instruments.

‘(2) DUTIES- The servicer shall act as the agent for the Secretary.

‘(3) FEE- The servicer shall receive a servicing fee, subject to approval by the Secretary.

‘(d) Assistance From Expert Firms- The Secretary may retain the services of expert firms, including counsel, in the field of municipal and project finance to assist in the underwriting and servicing of Federal credit instruments.

‘Sec. 606. State and local permits

‘The provision of credit assistance under this chapter with respect to a project shall not--

‘(1) relieve any recipient of the assistance of any obligation to obtain any required State or local permit or approval with respect to the project;

‘(2) limit the right of any unit of State or local government to approve or regulate any rate of return on private equity invested in the project; or

‘(3) otherwise supersede any State or local law (including any regulation) applicable to the construction or operation of the project.

‘Sec. 607. Regulations

‘The Secretary may promulgate such regulations as the Secretary determines appropriate to carry out this chapter.

‘Sec. 608. Funding

‘(a) Funding-

‘(1) SPENDING AND BORROWING AUTHORITY- Spending and borrowing authority for a fiscal year to enter into Federal credit instruments shall be promptly apportioned to the Secretary on a fiscal year basis.

‘(2) REESTIMATES- When the estimated cost of a loan or loans is reestimated, the cost of the reestimate shall be borne by or benefit the general fund of the Treasury, consistent with section 661c(f) of title 2, United States Code.

‘(3) RURAL SET-ASIDE-

‘(A) IN GENERAL- Of the total amount of funds made available to carry out this chapter for each fiscal year, 10 percent shall be set aside for rural infrastructure projects.

‘(B) REOBLIGATION- Any amounts set aside under subparagraph (A) that remain unobligated by June 1 of the fiscal year for which the amounts were set aside shall be available for obligation by the Secretary on projects other than rural infrastructure projects.

‘(4) REDISTRIBUTION OF AUTHORIZED FUNDING-

‘(A) IN GENERAL- Beginning in the second fiscal year after the date of enactment of this paragraph, on August 1 of that fiscal year, and each fiscal year thereafter, if the unobligated and uncommitted balance of funding available exceeds 150 percent of the amount made available to carry out this chapter for that fiscal year, the Secretary shall distribute to the States the amount of funds and associated obligation authority in excess of that amount.

‘(B) DISTRIBUTION- The amounts and obligation authority distributed under this paragraph shall be distributed, in the same manner as obligation authority is distributed to the States for the fiscal year, based on the proportion that--

‘(i) the relative share of each State of obligation authority for the fiscal year; bears to

‘(ii) the total amount of obligation authority distributed to all States for the fiscal year.

‘(C) PURPOSE- Funds distributed under subparagraph (B) shall be available for any purpose described in section 133(c).

‘(5) AVAILABILITY- Amounts made available to carry out this chapter shall remain available until expended.

‘(6) ADMINISTRATIVE COSTS- Of the amounts made available to carry out this chapter, the Secretary may use not more than 1 percent for each fiscal year for the administration of this chapter.

‘(b) Contract Authority-

‘(1) IN GENERAL- Notwithstanding any other provision of law, execution of a term sheet by the Secretary of a Federal credit instrument that uses amounts made available under this chapter shall impose on the United States a contractual obligation to fund the Federal credit investment.

‘(2) AVAILABILITY- Amounts made available to carry out this chapter for a fiscal year shall be available for obligation on October 1 of the fiscal year.

‘Sec. 609. Reports to Congress

‘On June 1, 2012, and every 2 years thereafter, the Secretary shall submit to Congress a report summarizing the financial performance of the projects that are receiving, or have received, assistance under this chapter (other than section 610), including a recommendation as to whether the objectives of this chapter (other than section 610) are best served--

‘(1) by continuing the program under the authority of the Secretary;

‘(2) by establishing a Federal corporation or federally sponsored enterprise to administer the program; or

‘(3) by phasing out the program and relying on the capital markets to fund the types of infrastructure investments assisted by this chapter (other than section 610) without Federal participation.’.

SEC. 2003. STATE INFRASTRUCTURE BANKS.

Section 610(d)(1)(A) of title 23, United States Code, is amended by striking ‘sections 104(b)(1)’ and all that follows though the semicolon and inserting ‘paragraphs (1) and (2) of section 104(b)’.

TITLE III--HIGHWAY SPENDING CONTROLS

SEC. 3001. HIGHWAY SPENDING CONTROLS.

(a) In General- Title 23, United States Code, is amended by adding at the end the following:

Chapter 7--Highway Spending Controls

Sec.

701. Solvency of Highway Account of the Highway Trust Fund.

‘SEC. 701. SOLVENCY OF HIGHWAY ACCOUNT OF THE HIGHWAY TRUST FUND.

‘(a) Solvency Calculation for Fiscal Year 2012-

‘(1) ADJUSTMENT OF OBLIGATION LIMITATION- Not later than 60 days after the date of enactment of the MAP-21, the Secretary, in consultation with the Secretary of Treasury, shall:

‘(A) Estimate the balance of the Highway Trust Fund (other than the Mass Transit Account) at the end of fiscal years 2012 and 2013. For purposes of which estimation, the Secretary shall assume that the obligation limitation on Federal-aid highways and highway safety construction programs will be equal to the obligation limitations enacted for those fiscal years in the MAP-21.

‘(B) Determine if the estimated balance of the Highway Trust Fund (other than the Mass Transit Account) would fall below--

‘(i) $2,000,000,000 at the end of fiscal year 2012; or

‘(ii) $1,000,000,000 at the end of fiscal year 2013.

‘(C) If either of the conditions in subparagraph (B) would occur, calculate the amount by which the fiscal year 2012 obligation limitation must be reduced to prevent such occurrence. For purposes of this calculation, the Secretary shall assume that the obligation limitation on Federal-aid highways and highway safety construction programs for the fiscal year 2013 will be equal to the obligation limitation for fiscal year 2012, as reduced pursuant to this subparagraph.

‘(D) Adjust the distribution of the fiscal year 2012 obligation limitation to reflect any reduction determined under subparagraph (C).

‘(2) LAPSE AND RESCISSION-

‘(A) LAPSE OF OBLIGATION LIMITATION- Any obligation limitation that is withdrawn by the Secretary pursuant to paragraph (1)(D) shall lapse immediately following the adjustment of obligation limitation under such paragraph.

‘(B) RESCISSION OF CONTRACT AUTHORITY- Upon the lapse of any obligation limitation under subparagraph (A), the Secretary shall reduce proportionately the amount authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) for fiscal year 2012 to carry out each of the Federal-aid highway and highway safety construction programs (other than emergency relief and funds under the national highway performance program that are exempt from the fiscal year 2012 obligation limitation) by an aggregate amount equal to the amount of adjustment determined pursuant to paragraph (1)(D). The amounts withdrawn pursuant to this subparagraph are permanently rescinded.

‘(b) Solvency Calculation for Fiscal Year 2013 and Fiscal Years Thereafter-

‘(1) ADJUSTMENT OF OBLIGATION LIMITATION- Except as provided in paragraph (2), in distributing the obligation limitation on Federal-aid highways and highway safety construction programs for fiscal year 2013 and each fiscal year thereafter, the Secretary shall--

‘(A) estimate the balance of the Highway Trust Fund (other than the Mass Transit Account) at the end of such fiscal year and the end of the next fiscal year, for purposes of which estimation, the Secretary shall assume that the obligation limitation on Federal-aid highways and highway safety construction programs for the next fiscal year will be equal to the obligation limitation enacted for the fiscal year for which the limitation is being distributed;

‘(B) determine whether the estimated balance of the Highway Trust Fund (other than the Mass Transit Account) would fall below $2,000,000,000 at the end of the fiscal year for which the obligation limitation is being distributed;

‘(C) if the condition in subparagraph (B) would occur, calculate the amount by which the obligation limitation in the fiscal year for which the obligation limitation is being distributed must be reduced to prevent that occurrence; and

‘(D) distribute such obligation limitation less any amount determined under subparagraph (C).

‘(2) LAPSE AND RESCISSION-

‘(A) OBLIGATION LIMITATION-

‘(i) RECALCULATION- In a fiscal year in which the Secretary withholds obligation limitation based on the calculation under paragraph (1), the Secretary shall, on March 1 of such fiscal year, repeat the calculations under subparagraphs (A) through (C) of such paragraph. Based on the results of those calculations, the Secretary shall--

‘(I) if the Secretary determines that either of the conditions in paragraph (1)(B) would occur, withdraw an additional amount of obligation limitation necessary to prevent such occurrence; or

‘(II) distribute as much of the withheld obligation limitation as may be distributed without causing either of the conditions specified in paragraph (1)(B) to occur.

‘(ii) LAPSE- Any obligation limitation that is enacted for a fiscal year, withheld from distribution pursuant to paragraph (1)(D) (or withdrawn under clause (i)(I)), and not subsequently distributed under clause (i)(II) shall lapse immediately following the distribution of obligation limitation under such clause.

‘(B) CONTRACT AUTHORITY-

‘(i) IN GENERAL- Upon the lapse of any obligation limitation under subparagraph (A)(ii), an equal amount of the unobligated balances of funds apportioned among the States under chapter 1 and sections 1116, 1303, and 1404 of the SAFETEA-LU (119 Stat. 1177, 1207, and 1228) are permanently rescinded. In administering the rescission required under this clause, the Secretary shall allow each State to determine the amount of the required rescission to be drawn from the programs to which the rescission applies, except as provided in clause (ii).

‘(ii) RESCISSION OF FUNDS APPORTIONED IN FISCAL YEAR 2013 AND FISCAL YEARS THEREAFTER- If a State determines that it will meet any of its required rescission amount from funds apportioned to such State on or subsequent to October 1, 2012, the Secretary shall determine the amount to be rescinded from each of the programs subject to the rescission for which the State was apportioned funds on or subsequent to October 1, 2012, in proportion to the cumulative amount of apportionments that the State received for each such program on or subsequent to October 1, 2012.

‘(3) OTHER ACTIONS TO PREVENT INSOLVENCY- The Secretary shall issue a regulation to establish any actions in addition to those described in subsection (a) and paragraph (1) that may be taken by the Secretary if it becomes apparent that the Highway Trust Fund (other than the Mass Transit Account) will become insolvent, including the denial of further obligations.

‘(4) APPLICABLE ONLY TO FULL-YEAR LIMITATION- The requirements of paragraph (1) apply only to the distribution of a full-year obligation limitation and do not apply to partial-year limitations under continuing appropriations Acts.’.

(b) Table of Chapters- The table of chapters for title 23, United States Code, is amended by inserting after the item relating to chapter 6 the following:

701’.

DIVISION B--PUBLIC TRANSPORTATION

SEC. 20001. SHORT TITLE.

This division may be cited as the ‘Federal Public Transportation Act of 2012’.

SEC. 20002. REPEALS.

(a) Chapter 53- Chapter 53 of title 49, United States Code, is amended by striking sections 5316, 5317, 5321, 5324, 5328, and 5339.

(b) Transportation Equity Act for the 21st Century- Section 3038 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note) is repealed.

(c) SAFETEA-LU- The following provisions are repealed:

(1) Section 3009(i) of SAFETEA-LU (Public Law 109-59; 119 Stat. 1572).

(2) Section 3011(c) of SAFETEA-LU (49 U.S.C. 5309 note).

(3) Section 3012(b) of SAFETEA-LU (49 U.S.C. 5310 note).

(4) Section 3045 of SAFETEA-LU (49 U.S.C. 5308 note).

(5) Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note).

SEC. 20003. POLICIES, PURPOSES, AND GOALS.

Section 5301 of title 49, United States Code, is amended to read as follows:

‘Sec. 5301. Policies, purposes, and goals

‘(a) Declaration of Policy- It is in the interest of the United States, including the economic interest of the United States, to foster the development and revitalization of public transportation systems.

‘(b) General Purposes- The purposes of this chapter are to--

‘(1) provide funding to support public transportation;

‘(2) improve the development and delivery of capital projects;

‘(3) initiate a new framework for improving the safety of public transportation systems;

‘(4) establish standards for the state of good repair of public transportation infrastructure and vehicles;

‘(5) promote continuing, cooperative, and comprehensive planning that improves the performance of the transportation network;

‘(6) establish a technical assistance program to assist recipients under this chapter to more effectively and efficiently provide public transportation service;

‘(7) continue Federal support for public transportation providers to deliver high quality service to all users, including individuals with disabilities, seniors, and individuals who depend on public transportation;

‘(8) support research, development, demonstration, and deployment projects dedicated to assisting in the delivery of efficient and effective public transportation service; and

‘(9) promote the development of the public transportation workforce.

‘(c) National Goals- The goals of this chapter are to--

‘(1) increase the availability and accessibility of public transportation across a balanced, multimodal transportation network;

‘(2) promote the environmental benefits of public transportation, including reduced reliance on fossil fuels, fewer harmful emissions, and lower public health expenditures;

‘(3) improve the safety of public transportation systems;

‘(4) achieve and maintain a state of good repair of public transportation infrastructure and vehicles;

‘(5) provide an efficient and reliable alternative to congested roadways;

‘(6) increase the affordability of transportation for all users; and

‘(7) maximize economic development opportunities by--

‘(A) connecting workers to jobs;

‘(B) encouraging mixed-use, transit-oriented development; and

‘(C) leveraging private investment and joint development.’.

SEC. 20004. DEFINITIONS.

Section 5302 of title 49, United States Code, is amended to read as follows:

‘Sec. 5302. Definitions

‘Except as otherwise specifically provided, in this chapter the following definitions apply:

‘(1) ASSOCIATED TRANSIT IMPROVEMENT- The term ‘associated transit improvement’ means, with respect to any project or an area to be served by a project, projects that are designed to enhance public transportation service or use and that are physically or functionally related to transit facilities. Eligible projects are--

‘(A) historic preservation, rehabilitation, and operation of historic public transportation buildings, structures, and facilities (including historic bus and railroad facilities) intended for use in public transportation service;

‘(B) bus shelters;

‘(C) landscaping and streetscaping, including benches, trash receptacles, and street lights;

‘(D) pedestrian access and walkways;

‘(E) bicycle access, including bicycle storage facilities and installing equipment for transporting bicycles on public transportation vehicles;

‘(F) signage; or

‘(G) enhanced access for persons with disabilities to public transportation.

‘(2) BUS RAPID TRANSIT SYSTEM- The term ‘bus rapid transit system’ means a bus transit system--

‘(A) in which the majority of each line operates in a separated right-of-way dedicated for public transportation use during peak periods; and

‘(B) that includes features that emulate the services provided by rail fixed guideway public transportation systems, including--

‘(i) defined stations;

‘(ii) traffic signal priority for public transportation vehicles;

‘(iii) short headway bidirectional services for a substantial part of weekdays and weekend days; and

‘(iv) any other features the Secretary may determine are necessary to produce high-quality public transportation services that emulate the services provided by rail fixed guideway public transportation systems.

‘(3) CAPITAL PROJECT- The term ‘capital project’ means a project for--

‘(A) acquiring, constructing, supervising, or inspecting equipment or a facility for use in public transportation, expenses incidental to the acquisition or construction (including designing, engineering, location surveying, mapping, and acquiring rights-of-way), payments for the capital portions of rail trackage rights agreements, transit-related intelligent transportation systems, relocation assistance, acquiring replacement housing sites, and acquiring, constructing, relocating, and rehabilitating replacement housing;

‘(B) rehabilitating a bus;

‘(C) remanufacturing a bus;

‘(D) overhauling rail rolling stock;

‘(E) preventive maintenance;

‘(F) leasing equipment or a facility for use in public transportation, subject to regulations that the Secretary prescribes limiting the leasing arrangements to those that are more cost-effective than purchase or construction;

‘(G) a joint development improvement that--

‘(i) enhances economic development or incorporates private investment, such as commercial and residential development;

‘(ii)(I) enhances the effectiveness of public transportation and is related physically or functionally to public transportation; or

‘(II) establishes new or enhanced coordination between public transportation and other transportation;

‘(iii) provides a fair share of revenue that will be used for public transportation;

‘(iv) provides that a person making an agreement to occupy space in a facility constructed under this paragraph shall pay a fair share of the costs of the facility through rental payments and other means;

‘(v) may include--

‘(I) property acquisition;

‘(II) demolition of existing structures;

‘(III) site preparation;

‘(IV) utilities;

‘(V) building foundations;

‘(VI) walkways;

‘(VII) pedestrian and bicycle access to a public transportation facility;

‘(VIII) construction, renovation, and improvement of intercity bus and intercity rail stations and terminals;

‘(IX) renovation and improvement of historic transportation facilities;

‘(X) open space;

‘(XI) safety and security equipment and facilities (including lighting, surveillance, and related intelligent transportation system applications);

‘(XII) facilities that incorporate community services such as daycare or health care;

‘(XIII) a capital project for, and improving, equipment or a facility for an intermodal transfer facility or transportation mall; and

‘(XIV) construction of space for commercial uses; and

‘(vi) does not include outfitting of commercial space (other than an intercity bus or rail station or terminal) or a part of a public facility not related to public transportation;

‘(H) the introduction of new technology, through innovative and improved products, into public transportation;

‘(I) the provision of nonfixed route paratransit transportation services in accordance with section 223 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12143), but only for grant recipients that are in compliance with applicable requirements of that Act, including both fixed route and demand responsive service, and only for amounts not to exceed 10 percent of such recipient’s annual formula apportionment under sections 5307 and 5311;

‘(J) establishing a debt service reserve, made up of deposits with a bondholder’s trustee, to ensure the timely payment of principal and interest on bonds issued by a grant recipient to finance an eligible project under this chapter;

‘(K) mobility management--

‘(i) consisting of short-range planning and management activities and projects for improving coordination among public transportation and other transportation service providers carried out by a recipient or subrecipient through an agreement entered into with a person, including a governmental entity, under this chapter (other than section 5309); but

‘(ii) excluding operating public transportation services; or

‘(L) associated capital maintenance, including--

‘(i) equipment, tires, tubes, and material, each costing at least .5 percent of the current fair market value of rolling stock comparable to the rolling stock for which the equipment, tires, tubes, and material are to be used; and

‘(ii) reconstruction of equipment and material, each of which after reconstruction will have a fair market value of at least .5 percent of the current fair market value of rolling stock comparable to the rolling stock for which the equipment and material will be used.

‘(4) DESIGNATED RECIPIENT- The term ‘designated recipient’ means--

‘(A) an entity designated, in accordance with the planning process under sections 5303 and 5304, by the Governor of a State, responsible local officials, and publicly owned operators of public transportation, to receive and apportion amounts under section 5336 to urbanized areas of 200,000 or more in population; or

‘(B) a State or regional authority, if the authority is responsible under the laws of a State for a capital project and for financing and directly providing public transportation.

‘(5) DISABILITY- The term ‘disability’ has the same meaning as in section 3(1) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102).

‘(6) EMERGENCY REGULATION- The term ‘emergency regulation’ means a regulation--

‘(A) that is effective temporarily before the expiration of the otherwise specified periods of time for public notice and comment under section 5334(c); and

‘(B) prescribed by the Secretary as the result of a finding that a delay in the effective date of the regulation--

‘(i) would injure seriously an important public interest;

‘(ii) would frustrate substantially legislative policy and intent; or

‘(iii) would damage seriously a person or class without serving an important public interest.

‘(7) FIXED GUIDEWAY- The term ‘fixed guideway’ means a public transportation facility--

‘(A) using and occupying a separate right-of-way for the exclusive use of public transportation;

‘(B) using rail;

‘(C) using a fixed catenary system;

‘(D) for a passenger ferry system; or

‘(E) for a bus rapid transit system.

‘(8) GOVERNOR- The term ‘Governor’--

‘(A) means the Governor of a State, the mayor of the District of Columbia, and the chief executive officer of a territory of the United States; and

‘(B) includes the designee of the Governor.

‘(9) LOCAL GOVERNMENTAL AUTHORITY- The term ‘local governmental authority’ includes--

‘(A) a political subdivision of a State;

‘(B) an authority of at least 1 State or political subdivision of a State;

‘(C) an Indian tribe; and

‘(D) a public corporation, board, or commission established under the laws of a State.

‘(10) LOW-INCOME INDIVIDUAL- The term ‘low-income individual’ means an individual whose family income is at or below 150 percent of the poverty line, as that term is defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by that section, for a family of the size involved.

‘(11) NET PROJECT COST- The term ‘net project cost’ means the part of a project that reasonably cannot be financed from revenues.

‘(12) NEW BUS MODEL- The term ‘new bus model’ means a bus model (including a model using alternative fuel)--

‘(A) that has not been used in public transportation in the United States before the date of production of the model; or

‘(B) used in public transportation in the United States, but being produced with a major change in configuration or components.

‘(13) PUBLIC TRANSPORTATION- The term ‘public transportation’--

‘(A) means regular, continuing shared-ride surface transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income; and

‘(B) does not include--

‘(i) intercity passenger rail transportation provided by the entity described in chapter 243 (or a successor to such entity);

‘(ii) intercity bus service;

‘(iii) charter bus service;

‘(iv) school bus service;

‘(v) sightseeing service;

‘(vi) courtesy shuttle service for patrons of one or more specific establishments; or

‘(vii) intra-terminal or intra-facility shuttle services.

‘(14) REGULATION- The term ‘regulation’ means any part of a statement of general or particular applicability of the Secretary designed to carry out, interpret, or prescribe law or policy in carrying out this chapter.

‘(15) SECRETARY- The term ‘Secretary’ means the Secretary of Transportation.

‘(16) SENIOR- The term ‘senior’ means an individual who is 65 years of age or older.

‘(17) STATE- The term ‘State’ means a State of the United States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the Virgin Islands.

‘(18) STATE OF GOOD REPAIR- The term ‘state of good repair’ has the meaning given that term by the Secretary, by rule, under section 5326(b).

‘(19) TRANSIT- The term ‘transit’ means public transportation.

‘(20) URBAN AREA- The term ‘urban area’ means an area that includes a municipality or other built-up place that the Secretary, after considering local patterns and trends of urban growth, decides is appropriate for a local public transportation system to serve individuals in the locality.

‘(21) URBANIZED AREA- The term ‘urbanized area’ means an area encompassing a population of not less than 50,000 people that has been defined and designated in the most recent decennial census as an ‘urbanized area’ by the Secretary of Commerce.’.

SEC. 20005. METROPOLITAN TRANSPORTATION PLANNING.

(a) In General- Section 5303 of title 49, United States Code, is amended to read as follows:

‘Sec. 5303. Metropolitan transportation planning

‘(a) Policy- It is in the national interest--

‘(1) to encourage and promote the safe, cost-effective, and efficient management, operation, and development of surface transportation systems that will serve efficiently the mobility needs of individuals and freight, reduce transportation-related fatalities and serious injuries, and foster economic growth and development within and between States and urbanized areas, while fitting the needs and complexity of individual communities, maximizing value for taxpayers, leveraging cooperative investments, and minimizing transportation-related fuel consumption and air pollution through the metropolitan and statewide transportation planning processes identified in this chapter;

‘(2) to encourage the continued improvement, evolution, and coordination of the metropolitan and statewide transportation planning processes by and among metropolitan planning organizations, State departments of transportation, regional planning organizations, interstate partnerships, and public transportation and intercity service operators as guided by the planning factors identified in subsection (h) of this section and section 5304(d);

‘(3) to encourage and promote transportation needs and decisions that are integrated with other planning needs and priorities; and

‘(4) to maximize the effectiveness of transportation investments.

‘(b) Definitions- In this section and section 5304, the following definitions shall apply:

‘(1) EXISTING MPO- The term ‘existing MPO’ means a metropolitan planning organization that was designated as a metropolitan planning organization on the day before the date of enactment of the Federal Public Transportation Act of 2012.

‘(2) LOCAL OFFICIAL- The term ‘local official’ means any elected or appointed official of general purpose local government with responsibility for transportation in a designated area.

‘(3) MAINTENANCE AREA- The term ‘maintenance area’ means an area that was designated as an air quality nonattainment area, but was later redesignated by the Administrator of the Environmental Protection Agency as an air quality attainment area, under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)).

‘(4) METROPOLITAN PLANNING AREA- The term ‘metropolitan planning area’ means a geographical area determined by agreement between the metropolitan planning organization for the area and the applicable Governor under subsection (c).

‘(5) METROPOLITAN PLANNING ORGANIZATION- The term ‘metropolitan planning organization’ means the policy board of an organization established pursuant to subsection (c).

‘(6) METROPOLITAN TRANSPORTATION PLAN- The term ‘metropolitan transportation plan’ means a plan developed by a metropolitan planning organization under subsection (i).

‘(7) NONATTAINMENT AREA- The term ‘nonattainment area’ has the meaning given the term in section 171 of the Clean Air Act (42 U.S.C. 7501).

‘(8) NONMETROPOLITAN AREA-

‘(A) IN GENERAL- The term ‘nonmetropolitan area’ means a geographical area outside the boundaries of a designated metropolitan planning area.

‘(B) INCLUSIONS- The term ‘nonmetropolitan area’ includes--

‘(i) a small urbanized area with a population of more than 50,000, but fewer than 200,000 individuals, as calculated according to the most recent decennial census; and

‘(ii) a nonurbanized area.

‘(9) NONMETROPOLITAN PLANNING ORGANIZATION- The term ‘nonmetropolitan planning organization’ means an organization that--

‘(A) was designated as a metropolitan planning organization as of the day before the date of enactment of the Federal Public Transportation Act of 2012; and

‘(B) is not designated as a tier I MPO or tier II MPO.

‘(10) REGIONALLY SIGNIFICANT- The term ‘regionally significant’, with respect to a transportation project, program, service, or strategy, means a project, program, service, or strategy that--

‘(A) serves regional transportation needs (such as access to and from the area outside of the region, major activity centers in the region, and major planned developments); and

‘(B) would normally be included in the modeling of a transportation network of a metropolitan area.

‘(11) RURAL PLANNING ORGANIZATION- The term ‘rural planning organization’ means an organization that--

‘(A) is responsible for the planning, coordination, and implementation of statewide transportation plans and programs outside of metropolitan areas, with an emphasis on addressing the needs of rural areas of a State;

‘(B) is not designated as a tier I MPO, a tier II MPO, or a nonmetropolitan planning organization.

‘(12) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM- The term ‘statewide transportation improvement program’ means a statewide transportation improvement program developed by a State under section 5304(g).

‘(13) STATEWIDE TRANSPORTATION PLAN- The term ‘statewide transportation plan’ means a plan developed by a State under section 5304(f).

‘(14) TIER I MPO- The term ‘tier I MPO’ means a metropolitan planning organization designated as a tier I MPO under subsection (e)(4)(A).

‘(15) TIER II MPO- The term ‘tier II MPO’ means a metropolitan planning organization designated as a tier II MPO under subsection (e)(4)(B).

‘(16) TRANSPORTATION IMPROVEMENT PROGRAM- The term ‘transportation improvement program’ means a program developed by a metropolitan planning organization under subsection (j).

‘(17) URBANIZED AREA- The term ‘urbanized area’ means a geographical area with a population of 50,000 or more individuals, as calculated according to the most recent decennial census.

‘(c) Designation of Metropolitan Planning Organizations-

‘(1) IN GENERAL- To carry out the metropolitan transportation planning process under this section, a metropolitan planning organization shall be designated for each urbanized area with a population of 200,000 or more individuals, as calculated according to the most recent decennial census--

‘(A) by agreement between the applicable Governor and local officials that, in the aggregate, represent at least 75 percent of the affected population (including the largest incorporated city (based on population), as calculated according to the most recent decennial census); or

‘(B) in accordance with procedures established by applicable State or local law.

‘(2) SMALL URBANIZED AREAS- To carry out the metropolitan transportation planning process under this section, a metropolitan planning organization may be designated for any urbanized area with a population of 50,000 or more individuals, but fewer than 200,000 individuals, as calculated according to the most recent decennial census--

‘(A) by agreement between the applicable Governor and local officials that, in the aggregate, represent at least 75 percent of the affected population (including the largest incorporated city (based on population), as calculated according to the most recent decennial census); and

‘(B) with the consent of the Secretary, based on a finding that the resulting metropolitan planning organization has met the minimum requirements under subsection (e)(4)(B).

‘(3) STRUCTURE- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, a metropolitan planning organization shall consist of--

‘(A) elected local officials in the relevant metropolitan area;

‘(B) officials of public agencies that administer or operate major modes of transportation in the relevant metropolitan area, including providers of public transportation; and

‘(C) appropriate State officials.

‘(4) EFFECT OF SUBSECTION- Nothing in this subsection interferes with any authority under any State law in effect on December 18, 1991, of a public agency with multimodal transportation responsibilities--

‘(A) to develop the metropolitan transportation plans and transportation improvement programs for adoption by a metropolitan planning organization; or

‘(B) to develop capital plans, coordinate public transportation services and projects, or carry out other activities pursuant to State law.

‘(5) CONTINUING DESIGNATION-

‘(A) POPULATION OF 200,000 OR MORE- A designation of an existing MPO for an urbanized area with a population of 200,000 or more individuals, as calculated according to the most recent decennial census, shall remain in effect--

‘(i) for the period during which the structure of the existing MPO complies with the requirements of paragraph (1); or

‘(ii) until the date on which the existing MPO is redesignated under paragraph (6).

‘(B) POPULATION OF FEWER THAN 200,000-

‘(i) IN GENERAL- A designation of an existing MPO for an urbanized area with a population of fewer than 200,000 individuals, as calculated according to the most recent decennial census, shall remain in effect until the date on which the existing MPO is redesignated under paragraph (6) unless--

‘(I) the existing MPO requests that its planning responsibilities be transferred to the State or to another planning organization designated by the State; or

‘(II)(aa) the Secretary determines 3 years after the date on which the Secretary issues a rule pursuant to subsection (e)(4)(B)(i), that the existing MPO is not meeting the minimum requirements established by the rule; and

‘(bb) the Secretary approves the Governor’s determination.

‘(ii) WRITTEN JUSTIFICATION- The Secretary shall in a timely manner provide a substantive written justification to each metropolitan planning organization that is the subject of a negative determination of the Secretary under clause (i)(II).

‘(C) EXTENSION- If a metropolitan planning organization for an urbanized area with a population of less than 200,000 that would otherwise be terminated under subparagraph (B), requests a probationary continuation before the termination of the metropolitan planning organization, the Secretary shall--

‘(i) delay the termination of the metropolitan planning organization under subparagraph (B) for a period of 1 year;

‘(ii) provide additional technical assistance to all metropolitan planning organizations provided an extension under this paragraph to assist the metropolitan planning organization in meeting the minimum requirements under subsection (e)(4)(B)(i); and

‘(iii) make a determination 1 year after the date on which the Secretary issues an extension, whether the MPO has meet the minimum requirements established under subsection (e)(4)(B)(i).

‘(D) DESIGNATION AS TIER II MPO- If the Secretary determines the existing MPO has met the minimum requirements under the rule issued under subsection (e)(4)(B)(i), the Secretary shall designate the existing MPO as a tier II MPO.

‘(6) REDESIGNATION-

‘(A) IN GENERAL- The designation of a metropolitan planning organization under this subsection shall remain in effect until the date on which the metropolitan planning organization is redesignated, as appropriate, in accordance with the requirements of this subsection pursuant to an agreement between--

‘(i) the applicable Governor; and

‘(ii) affected local officials who, in the aggregate, represent at least 75 percent of the existing metropolitan planning area population (including the largest incorporated city (based on population), as calculated according to the most recent decennial census).

‘(B) RESTRUCTURING- A metropolitan planning organization may be restructured to meet the requirements of paragraph (3) without undertaking a redesignation.

‘(7) ABSENCE OF DESIGNATION-

‘(A) IN GENERAL- A metropolitan planning organization that is the subject of a negative determination of the Secretary under paragraph (5)(B)(i)(II) shall submit to the State in which the metropolitan planning organization is located, or to a planning organization designated by the State, by not later than 180 days after the date on which a notice of the negative determination is received, a 6-month plan that includes a description of a method--

‘(i) to transfer the responsibilities of the metropolitan planning organization to the State; and

‘(ii) to dissolve the metropolitan planning organization.

‘(B) ACTION ON DISSOLUTION- On submission of a plan under subparagraph (A), the metropolitan planning area served by the applicable metropolitan planning organization shall--

‘(i) continue to receive metropolitan transportation planning funds until the earlier of--

‘(I) the date of dissolution of the metropolitan planning organization; and

‘(II) the date that is 4 years after the date of enactment of the Federal Public Transportation Act of 2012; and

‘(ii) be treated by the State as a nonmetropolitan area for purposes of this chapter.

‘(8) DESIGNATION OF MULTIPLE MPOS-

‘(A) IN GENERAL- More than 1 metropolitan planning organization may be designated within an existing metropolitan planning area only if the applicable Governor and an existing MPO determine that the size and complexity of the existing metropolitan planning area make the designation of more than 1 metropolitan planning organization for the metropolitan planning area appropriate.

‘(B) SERVICE JURISDICTIONS- If more than 1 metropolitan planning organization is designated for an existing metropolitan planning area under subparagraph (A), the existing metropolitan planning area shall be split into multiple metropolitan planning areas, each of which shall be served by the existing MPO or a new metropolitan planning organization.

‘(C) TIER DESIGNATION- The tier designation of each metropolitan planning organization subject to a designation under this paragraph shall be determined based on the size of each respective metropolitan planning area, in accordance with subsection (e)(4).

‘(d) Metropolitan Planning Area Boundaries-

‘(1) IN GENERAL- For purposes of this section, the boundaries of a metropolitan planning area shall be determined by agreement between the applicable metropolitan planning organization and the Governor of the State in which the metropolitan planning area is located.

‘(2) INCLUDED AREA- Each metropolitan planning area--

‘(A) shall encompass at least the relevant existing urbanized area and any contiguous area expected to become urbanized within a 20-year forecast period under the applicable metropolitan transportation plan; and

‘(B) may encompass the entire relevant metropolitan statistical area, as defined by the Office of Management and Budget.

‘(3) IDENTIFICATION OF NEW URBANIZED AREAS- The designation by the Bureau of the Census of a new urbanized area within the boundaries of an existing metropolitan planning area shall not require the redesignation of the relevant existing MPO.

‘(4) NONATTAINMENT AND MAINTENANCE AREAS-

‘(A) EXISTING METROPOLITAN PLANNING AREAS-

‘(i) IN GENERAL- Except as provided in clause (ii), notwithstanding paragraph (2), in the case of an urbanized area designated as a nonattainment area or maintenance area as of the date of enactment of the Federal Public Transportation Act of 2012, the boundaries of the existing metropolitan planning area as of that date of enactment shall remain in force and effect.

‘(ii) EXCEPTION- Notwithstanding clause (i), the boundaries of an existing metropolitan planning area described in that clause may be adjusted by agreement of the applicable Governor and the affected metropolitan planning organizations in accordance with paragraph (1).

‘(B) NEW METROPOLITAN PLANNING AREAS- In the case of an urbanized area designated as a nonattainment area or maintenance area after the date of enactment of the Federal Public Transportation Act of 2012, the boundaries of the applicable metropolitan planning area--

‘(i) shall be established in accordance with subsection (c)(1);

‘(ii) shall encompass the areas described in paragraph (2)(A);

‘(iii) may encompass the areas described in paragraph (2)(B); and

‘(iv) may address any appropriate nonattainment area or maintenance area.

‘(e) Requirements-

‘(1) DEVELOPMENT OF PLANS AND TIPS- To accomplish the policy objectives described in subsection (a), each metropolitan planning organization, in cooperation with the applicable State and public transportation operators, shall develop metropolitan transportation plans and transportation improvement programs for metropolitan planning areas of the State through a performance-driven, outcome-based approach to metropolitan transportation planning consistent with subsection (h).

‘(2) CONTENTS- The metropolitan transportation plans and transportation improvement programs for each metropolitan area shall provide for the development and integrated management and operation of transportation systems and facilities (including accessible pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation) that will function as--

‘(A) an intermodal transportation system for the metropolitan planning area; and

‘(B) an integral part of an intermodal transportation system for the applicable State and the United States.

‘(3) PROCESS OF DEVELOPMENT- The process for developing metropolitan transportation plans and transportation improvement programs shall--

‘(A) provide for consideration of all modes of transportation; and

‘(B) be continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation needs to be addressed.

‘(4) TIERING-

‘(A) TIER I MPOS-

‘(i) IN GENERAL- A metropolitan planning organization shall be designated as a tier I MPO if--

‘(I) as certified by the Governor of each applicable State, the metropolitan planning organization operates within, and primarily serves, a metropolitan planning area with a population of 1,000,000 or more individuals, as calculated according to the most recent decennial census; and

‘(II) the Secretary determines the metropolitan planning organization--

‘(aa) meets the minimum technical requirements under clause (iv); and

‘(bb) not later than 2 years after the date of enactment of the Federal Public Transportation Act of 2012, will fully implement the processes described in subsections (h) though (j).

‘(ii) ABSENCE OF DESIGNATION- In the absence of designation as a tier I MPO under clause (i), a metropolitan planning organization shall operate as a tier II MPO until the date on which the Secretary determines the metropolitan planning organization can meet the minimum technical requirements under clause (iv).

‘(iii) REDESIGNATION AS TIER I- A metropolitan planning organization operating within a metropolitan planning area with a population of 200,000 or more and fewer than 1,000,000 individuals and primarily within urbanized areas with populations of 200,000 or more individuals, as calculated according to the most recent decennial census, that is designated as a tier II MPO under subparagraph (B) may request, with the support of the applicable Governor, a redesignation as a tier I MPO on a determination by the Secretary that the metropolitan planning organization has met the minimum technical requirements under clause (iv).

‘(iv) MINIMUM TECHNICAL REQUIREMENTS- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue a rule that establishes the minimum technical requirements necessary for a metropolitan planning organization to be designated as a tier I MPO, including, at a minimum, modeling, data, staffing, and other technical requirements.

‘(B) TIER II MPOS-

‘(i) IN GENERAL- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue a rule that establishes minimum requirements necessary for a metropolitan planning organization to be designated as a tier II MPO.

‘(ii) REQUIREMENTS- The minimum requirements established under clause (i) shall--

‘(I) be limited to ensuring that each metropolitan planning organization has the capabilities necessary to develop the metropolitan transportation plan and transportation improvement program under this section; and

‘(II) include--

‘(aa) only the staffing capabilities necessary to operate the metropolitan planning organization; and

‘(bb) a requirement that the metropolitan planning organization has the technical capacity to conduct the travel demand model and forecasting necessary, as appropriate to the size and resources of the metropolitan planning organization, to fulfill the requirements of this section, except that in cases in which a metropolitan planning organization has a formal agreement with a State to conduct the modeling on behalf of the metropolitan planning organization, the metropolitan planning organization shall be exempt from the technical capacity requirement.

‘(iii) LIMITATION- The rule issued pursuant to this subparagraph shall only include the minimum requirements established in clause (ii).

‘(iv) INCLUSION- A metropolitan planning organization operating primarily within an urbanized area with a population of 200,000 or more individuals, as calculated according to the most recent decennial census, and that does not qualify as a tier I MPO under subparagraph (A)(i), shall--

‘(I) be designated as a tier II MPO; and

‘(II) follow the processes under subsection (k).

‘(C) CONSOLIDATION-

‘(i) IN GENERAL- Metropolitan planning organizations operating within contiguous or adjacent urbanized areas may elect to consolidate in order to meet the population thresholds required to achieve designation as a tier I or tier II MPO under this paragraph.

‘(ii) EFFECT OF SUBSECTION- Nothing in this subsection requires or prevents consolidation among multiple metropolitan planning organizations located within a single urbanized area.

‘(f) Coordination in Multistate Areas-

‘(1) IN GENERAL- The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire metropolitan area.

‘(2) COORDINATION ALONG DESIGNATED TRANSPORTATION CORRIDORS- The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire designated transportation corridor.

‘(3) COORDINATION WITH INTERSTATE COMPACTS- The Secretary shall encourage metropolitan planning organizations to take into consideration, during the development of metropolitan transportation plans and transportation improvement programs, any relevant transportation studies concerning planning for regional transportation (including high-speed and intercity rail corridor studies, commuter rail corridor studies, intermodal terminals, and interstate highways) in support of freight, intercity, or multistate area projects and services that have been developed pursuant to interstate compacts or agreements, or by organizations established under section 5304.

‘(g) Engagement in Metropolitan Transportation Plan and TIP Development-

‘(1) NONATTAINMENT AND MAINTENANCE AREAS- If more than 1 metropolitan planning organization has authority within a metropolitan area, nonattainment area, or maintenance area, each metropolitan planning organization shall consult with all other metropolitan planning organizations designated for the metropolitan area, nonattainment area, or maintenance area and the State in the development of metropolitan transportation plans and transportation improvement programs under this section.

‘(2) TRANSPORTATION IMPROVEMENTS LOCATED IN MULTIPLE METROPOLITAN PLANNING AREAS- If a transportation improvement project funded under this chapter or title 23 is located within the boundaries of more than 1 metropolitan planning area, the affected metropolitan planning organizations shall coordinate metropolitan transportation plans and transportation improvement programs regarding the project.

‘(3) COORDINATION OF ADJACENT PLANNING ORGANIZATIONS-

‘(A) IN GENERAL- A metropolitan planning organization that is adjacent or located in reasonably close proximity to another metropolitan planning organization shall coordinate with that metropolitan planning organization with respect to planning processes, including preparation of metropolitan transportation plans and transportation improvement programs, to the maximum extent practicable.

‘(B) NONMETROPOLITAN PLANNING ORGANIZATIONS- A metropolitan planning organization that is adjacent or located in reasonably close proximity to a nonmetropolitan planning organization shall consult with that nonmetropolitan planning organization with respect to planning processes, to the maximum extent practicable.

‘(4) RELATIONSHIP WITH OTHER PLANNING OFFICIALS-

‘(A) IN GENERAL- The Secretary shall encourage each metropolitan planning organization to cooperate with Federal, State, tribal, and local officers and entities responsible for other types of planning activities that are affected by transportation in the relevant area (including planned growth, economic development, infrastructure services, housing, other public services, environmental protection, airport operations, high-speed and intercity passenger rail, freight rail, port access, and freight movements), to the maximum extent practicable, to ensure that the metropolitan transportation planning process, metropolitan transportation plans, and transportation improvement programs are developed in cooperation with other related planning activities in the area.

‘(B) INCLUSION- Cooperation under subparagraph (A) shall include the design and delivery of transportation services within the metropolitan area that are provided by--

‘(i) recipients of assistance under sections 202, 203, and 204 of title 23;

‘(ii) recipients of assistance under this title;

‘(iii) government agencies and nonprofit organizations (including representatives of the agencies and organizations) that receive Federal assistance from a source other than the Department of Transportation to provide nonemergency transportation services; and

‘(iv) sponsors of regionally significant programs, projects, and services that are related to transportation and receive assistance from any public or private source.

‘(5) COORDINATION OF OTHER FEDERALLY REQUIRED PLANNING PROGRAMS- The Secretary shall encourage each metropolitan planning organization to coordinate, to the maximum extent practicable, the development of metropolitan transportation plans and transportation improvement programs with other relevant federally required planning programs.

‘(h) Scope of Planning Process-

‘(1) IN GENERAL- The metropolitan transportation planning process for a metropolitan planning area under this section shall provide for consideration of projects and strategies that will--

‘(A) support the economic vitality of the metropolitan area, especially by enabling global competitiveness, travel and tourism (where applicable), productivity, and efficiency;

‘(B) increase the safety of the transportation system for motorized and nonmotorized users;

‘(C) increase the security of the transportation system for motorized and nonmotorized users;

‘(D) increase the accessibility and mobility of individuals and freight;

‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote consistency between transportation improvements and State and local planned growth and economic development patterns;

‘(F) enhance the integration and connectivity of the transportation system, across and between modes, for individuals and freight;

‘(G) increase efficient system management and operation; and

‘(H) emphasize the preservation of the existing transportation system.

‘(2) PERFORMANCE-BASED APPROACH-

‘(A) IN GENERAL- The metropolitan transportation planning process shall provide for the establishment and use of a performance-based approach to transportation decisionmaking to support the national goals described in section 5301(c) of this title and in section 150(b) of title 23.

‘(B) PERFORMANCE TARGETS-

‘(i) SURFACE TRANSPORTATION PERFORMANCE TARGETS-

‘(I) IN GENERAL- Each metropolitan planning organization shall establish performance targets that address the performance measures described in sections 119(f), 148(h), 149(k) (where applicable), and 167(i) of title 23, to use in tracking attainment of critical outcomes for the region of the metropolitan planning organization.

‘(II) COORDINATION- Selection of performance targets by a metropolitan planning organization shall be coordinated with the relevant State to ensure consistency, to the maximum extent practicable.

‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TARGETS- Each metropolitan planning organization shall adopt the performance targets identified by providers of public transportation pursuant to sections 5326(c) and 5329(d), for use in tracking attainment of critical outcomes for the region of the metropolitan planning organization.

‘(C) TIMING- Each metropolitan planning organization shall establish the performance targets under subparagraph (B) not later than 90 days after the date on which the relevant State or provider of public transportation establishes the performance targets.

‘(D) INTEGRATION OF OTHER PERFORMANCE-BASED PLANS- A metropolitan planning organization shall integrate in the metropolitan transportation planning process, directly or by reference, the goals, objectives, performance measures, and targets described in other State plans and processes, as well as asset management and safety plans developed by providers of public transportation, required as part of a performance-based program, including plans such as--

‘(i) the State National Highway System asset management plan;

‘(ii) asset management plans developed by providers of public transportation;

‘(iii) the State strategic highway safety plan;

‘(iv) a congestion mitigation and air quality performance plan developed under section 149(k) of title 23 by a tier I MPO representing a nonattainment or maintenance area;

‘(v) safety plans developed by providers of public transportation; and

‘(vi) the national freight strategic plan.

‘(E) USE OF PERFORMANCE MEASURES AND TARGETS- The performance measures and targets established under this paragraph shall be used, at a minimum, by the relevant metropolitan planning organization as the basis for development of policies, programs, and investment priorities reflected in the metropolitan transportation plan and transportation improvement program.

‘(3) FAILURE TO CONSIDER FACTORS- The failure to take into consideration 1 or more of the factors specified in paragraphs (1) and (2) shall not be subject to review by any court under this chapter, title 23, subchapter II of chapter 5 of title 5, or chapter 7 of title 5 in any matter affecting a metropolitan transportation plan, a transportation improvement program, a project or strategy, or the certification of a planning process.

‘(4) PARTICIPATION BY INTERESTED PARTIES-

‘(A) IN GENERAL- Each metropolitan planning organization shall provide to affected individuals, public agencies, and other interested parties (including State representatives of nonmotorized users) notice and a reasonable opportunity to comment on the metropolitan transportation plan and transportation improvement program and any relevant scenarios.

‘(B) CONTENTS OF PARTICIPATION PLAN- Each metropolitan planning organization shall establish a participation plan that--

‘(i) is developed in consultation with interested parties and local officials; and

‘(ii) provides that interested parties and local officials have reasonable opportunities to comment on the contents of the metropolitan transportation plan of the metropolitan planning organization.

‘(C) METHODS- In carrying out subparagraph (A), the metropolitan planning organization shall, to the maximum extent practicable--

‘(i) develop the metropolitan transportation plan and transportation improvement program in consultation with interested parties (including State representatives of nonmotorized users), as appropriate, including by the formation of advisory groups representative of the community and interested parties that participate in the development of the metropolitan transportation plan and transportation improvement program;

‘(ii) hold any public meetings at times and locations that are, as applicable--

‘(I) convenient; and

‘(II) in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);

‘(iii) employ visualization techniques to describe metropolitan transportation plans and transportation improvement programs; and

‘(iv) make public information available in appropriate electronically accessible formats and means, such as the Internet, to afford reasonable opportunity for consideration of public information under subparagraph (A).

‘(i) Development of Metropolitan Transportation Plan-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- Except as provided in subparagraph (B), not later than 5 years after the date of enactment of the Federal Public Transportation Act of 2012, and not less frequently than once every 5 years thereafter, each metropolitan planning organization shall prepare and update, respectively, a metropolitan transportation plan for the relevant metropolitan planning area in accordance with this section.

‘(B) EXCEPTIONS- A metropolitan planning organization shall prepare or update, as appropriate, the metropolitan transportation plan not less frequently than once every 4 years if the metropolitan planning organization is operating within--

‘(i) a nonattainment area; or

‘(ii) a maintenance area.

‘(2) OTHER REQUIREMENTS- A metropolitan transportation plan under this section shall--

‘(A) be in a form that the Secretary determines to be appropriate;

‘(B) have a term of not less than 20 years; and

‘(C) contain, at a minimum--

‘(i) an identification of the existing transportation infrastructure, including highways, local streets and roads, bicycle and pedestrian facilities, public transportation facilities and services, commuter rail facilities and services, high-speed and intercity passenger rail facilities and services, freight facilities (including freight railroad and port facilities), multimodal and intermodal facilities, and intermodal connectors that, evaluated in the aggregate, function as an integrated metropolitan transportation system;

‘(ii) a description of the performance measures and performance targets used in assessing the existing and future performance of the transportation system in accordance with subsection (h)(2);

‘(iii) a description of the current and projected future usage of the transportation system, including a projection based on a preferred scenario, and further including, to the extent practicable, an identification of existing or planned transportation rights-of-way, corridors, facilities, and related real properties;

‘(iv) a system performance report evaluating the existing and future condition and performance of the transportation system with respect to the performance targets described in subsection (h)(2) and updates in subsequent system performance reports, including--

‘(I) progress achieved by the metropolitan planning organization in meeting the performance targets in comparison with system performance recorded in previous reports;

‘(II) an accounting of the performance of the metropolitan planning organization on outlay of obligated project funds and delivery of projects that have reached substantial completion in relation to--

‘(aa) the projects included in the transportation improvement program; and

‘(bb) the projects that have been removed from the previous transportation improvement program; and

‘(III) when appropriate, an analysis of how the preferred scenario has improved the conditions and performance of the transportation system and how changes in local policies, investments, and growth have impacted the costs necessary to achieve the identified performance targets;

‘(v) recommended strategies and investments for improving system performance over the planning horizon, including transportation systems management and operations strategies, maintenance strategies, demand management strategies, asset management strategies, capacity and enhancement investments, State and local economic development and land use improvements, intelligent transportation systems deployment, and technology adoption strategies, as determined by the projected support of the performance targets described in subsection (h)(2);

‘(vi) recommended strategies and investments to improve and integrate disability-related access to transportation infrastructure, including strategies and investments based on a preferred scenario, when appropriate;

‘(vii) investment priorities for using projected available and proposed revenues over the short- and long-term stages of the planning horizon, in accordance with the financial plan required under paragraph (4);

‘(viii) a description of interstate compacts entered into in order to promote coordinated transportation planning in multistate areas, if applicable;

‘(ix) an optional illustrative list of projects containing investments that--

‘(I) are not included in the metropolitan transportation plan; but

‘(II) would be so included if resources in addition to the resources identified in the financial plan under paragraph (4) were available;

‘(x) a discussion (developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies) of types of potential environmental and stormwater mitigation activities and potential areas to carry out those activities, including activities that may have the greatest potential to restore and maintain the environmental functions affected by the metropolitan transportation plan; and

‘(xi) recommended strategies and investments, including those developed by the State as part of interstate compacts, agreements, or organizations, that support intercity transportation.

‘(3) SCENARIO DEVELOPMENT-

‘(A) IN GENERAL- When preparing the metropolitan transportation plan, the metropolitan planning organization may, while fitting the needs and complexity of their community, develop multiple scenarios for consideration as a part of the development of the metropolitan transportation plan, in accordance with subparagraph (B).

‘(B) COMPONENTS OF SCENARIOS- The scenarios--

‘(i) shall include potential regional investment strategies for the planning horizon;

‘(ii) shall include assumed distribution of population and employment;

‘(iii) may include a scenario that, to the maximum extent practicable, maintains baseline conditions for the performance measures identified in subsection (h)(2);

‘(iv) may include a scenario that improves the baseline conditions for as many of the performance measures under subsection (h)(2) as possible;

‘(v) shall be revenue constrained based on the total revenues expected to be available over the forecast period of the plan; and

‘(vi) may include estimated costs and potential revenues available to support each scenario.

‘(C) METRICS- In addition to the performance measures identified in subsection (h)(2), scenarios developed under this paragraph may be evaluated using locally developed metrics for the following categories:

‘(i) Congestion and mobility, including transportation use by mode.

‘(ii) Freight movement.

‘(iii) Safety.

‘(iv) Efficiency and costs to taxpayers.

‘(4) FINANCIAL PLAN- A financial plan referred to in paragraph (2)(C)(vii) shall--

‘(A) be prepared by each metropolitan planning organization to support the metropolitan transportation plan; and

‘(B) contain a description of the following:

‘(i) Projected resource requirements for implementing projects, strategies, and services recommended in the metropolitan transportation plan, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the metropolitan planning organization, any public transportation agency, and the State, that are reasonably expected to be available to support the investment priorities recommended in the metropolitan transportation plan.

‘(iv) Each applicable project only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(5) COORDINATION WITH CLEAN AIR ACT AGENCIES- The metropolitan planning organization for any metropolitan area that is a nonattainment area or maintenance area shall coordinate the development of a transportation plan with the process for development of the transportation control measures of the State implementation plan required by the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(6) PUBLICATION- On approval by the relevant metropolitan planning organization, a metropolitan transportation plan involving Federal participation shall be, at such times and in such manner as the Secretary shall require--

‘(A) published or otherwise made readily available by the metropolitan planning organization for public review, including (to the maximum extent practicable) in electronically accessible formats and means, such as the Internet; and

‘(B) submitted for informational purposes to the applicable Governor.

‘(7) CONSULTATION-

‘(A) IN GENERAL- In each metropolitan area, the metropolitan planning organization shall consult, as appropriate, with Federal, State, tribal, and local agencies responsible for land use management, natural resources, environmental protection, conservation, and historic preservation concerning the development of a metropolitan transportation plan.

‘(B) ISSUES- The consultation under subparagraph (A) shall involve, as available, consideration of--

‘(i) metropolitan transportation plans with Federal, State, tribal, and local conservation plans or maps; and

‘(ii) inventories of natural or historic resources.

‘(8) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST- Notwithstanding paragraph (4), a State or metropolitan planning organization shall not be required to select any project from the illustrative list of additional projects included in the metropolitan transportation plan under paragraph (2)(C)(ix).

‘(j) Transportation Improvement Program-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- In cooperation with the applicable State and any affected public transportation operator, the metropolitan planning organization designated for a metropolitan area shall develop a transportation improvement program for the metropolitan planning area that--

‘(i) contains projects consistent with the current metropolitan transportation plan;

‘(ii) reflects the investment priorities established in the current metropolitan transportation plan; and

‘(iii) once implemented, will make significant progress toward achieving the performance targets established under subsection (h)(2).

‘(B) OPPORTUNITY FOR PARTICIPATION- In developing the transportation improvement program, the metropolitan planning organization, in cooperation with the State and any affected public transportation operator, shall provide an opportunity for participation by interested parties, in accordance with subsection (h)(4).

‘(C) UPDATING AND APPROVAL- The transportation improvement program shall be--

‘(i) updated not less frequently than once every 4 years, on a cycle compatible with the development of the relevant statewide transportation improvement program under section 5304; and

‘(ii) approved by the applicable Governor.

‘(2) CONTENTS-

‘(A) PRIORITY LIST- The transportation improvement program shall include a priority list of proposed federally supported projects and strategies to be carried out during the 4-year period beginning on the date of adoption of the transportation improvement program, and each 4-year period thereafter, using existing and reasonably available revenues in accordance with the financial plan under paragraph (3).

‘(B) DESCRIPTIONS- Each project described in the transportation improvement program shall include sufficient descriptive material (such as type of work, termini, length, and other similar factors) to identify the project or phase of the project and the effect that the project or project phase will have in addressing the targets described in subsection (h)(2).

‘(C) PERFORMANCE TARGET ACHIEVEMENT- The transportation improvement program shall include, to the maximum extent practicable, a description of the anticipated effect of the transportation improvement program on attainment of the performance targets established in the metropolitan transportation plan, linking investment priorities to those performance targets.

‘(D) ILLUSTRATIVE LIST OF PROJECTS- In developing a transportation improvement program, an optional illustrative list of projects may be prepared containing additional investment priorities that--

‘(i) are not included in the transportation improvement program; but

‘(ii) would be so included if resources in addition to the resources identified in the financial plan under paragraph (3) were available.

‘(3) FINANCIAL PLAN- A financial plan referred to in paragraph (2)(D)(ii) shall--

‘(A) be prepared by each metropolitan planning organization to support the transportation improvement program; and

‘(B) contain a description of the following:

‘(i) Projected resource requirements for implementing projects, strategies, and services recommended in the transportation improvement program, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the metropolitan planning organization, any public transportation agency, and the State, that are reasonably expected to be available to support the investment priorities recommended in the transportation improvement program.

‘(iv) Each applicable project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(4) INCLUDED PROJECTS-

‘(A) PROJECTS UNDER THIS CHAPTER AND TITLE 23- A transportation improvement program developed under this subsection for a metropolitan area shall include a description of the projects within the area that are proposed for funding under this chapter and chapter 1 of title 23.

‘(B) PROJECTS UNDER CHAPTER 2-

‘(i) REGIONALLY SIGNIFICANT- Each regionally significant project proposed for funding under chapter 2 of title 23 shall be identified individually in the transportation improvement program.

‘(ii) NONREGIONALLY SIGNIFICANT- A description of each project proposed for funding under chapter 2 of title 23 that is not determined to be regionally significant shall be contained in 1 line item or identified individually in the transportation improvement program.

‘(5) OPPORTUNITY FOR PARTICIPATION- Before approving a transportation improvement program, a metropolitan planning organization, in cooperation with the State and any affected public transportation operator, shall provide an opportunity for participation by interested parties in the development of the transportation improvement program, in accordance with subsection (h)(4).

‘(6) SELECTION OF PROJECTS-

‘(A) IN GENERAL- Each tier I MPO and tier II MPO shall select projects carried out within the boundaries of the applicable metropolitan planning area from the transportation improvement program, in consultation with the relevant State and on concurrence of the affected facility owner, for funds apportioned to the State under section 104(b)(2) of title 23 and suballocated to the metropolitan planning area under section 133(d) of title 23.

‘(B) PROJECTS UNDER CHAPTER 53- In the case of projects under this chapter, the selection of federally funded projects in metropolitan areas shall be carried out, from the approved transportation improvement program, by the designated recipients of public transportation funding in cooperation with the metropolitan planning organization.

‘(C) CONGESTION MITIGATION AND AIR QUALITY PROJECTS- Each tier I MPO shall select projects carried out within the boundaries of the applicable metropolitan planning area from the transportation improvement program, in consultation with the relevant State and on concurrence of the affected facility owner, for funds apportioned to the State under section 104(b)(4) of title 23 and suballocated to the metropolitan planning area under section 149(j) of title 23.

‘(D) MODIFICATIONS TO PROJECT PRIORITY- Notwithstanding any other provision of law, approval by the Secretary shall not be required to carry out a project included in a transportation improvement program in place of another project in the transportation improvement program.

‘(7) PUBLICATION-

‘(A) IN GENERAL- A transportation improvement program shall be published or otherwise made readily available by the applicable metropolitan planning organization for public review in electronically accessible formats and means, such as the Internet.

‘(B) ANNUAL LIST OF PROJECTS- An annual list of projects, including investments in pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation, for which Federal funds have been obligated during the preceding fiscal year shall be published or otherwise made available by the cooperative effort of the State, public transportation operator, and metropolitan planning organization in electronically accessible formats and means, such as the Internet, in a manner that is consistent with the categories identified in the relevant transportation improvement program.

‘(k) Planning Requirements for Tier II MPOs-

‘(1) IN GENERAL- The Secretary may provide for the performance-based development of a metropolitan transportation plan and transportation improvement program for the metropolitan planning area of a tier II MPO, as the Secretary determines to be appropriate, taking into account--

‘(A) the complexity of transportation needs in the area; and

‘(B) the technical capacity of the metropolitan planning organization.

‘(2) EVALUATION OF PERFORMANCE-BASED PLANNING- In reviewing a tier II MPO under subsection (m), the Secretary shall take into consideration the effectiveness of the tier II MPO in implementing and maintaining a performance-based planning process that--

‘(A) addresses the performance targets described in subsection (h)(2); and

‘(B) demonstrates progress on the achievement of those performance targets.

‘(l) Certification-

‘(1) IN GENERAL- The Secretary shall--

‘(A) ensure that the metropolitan transportation planning process of a metropolitan planning organization is being carried out in accordance with applicable Federal law; and

‘(B) subject to paragraph (2), certify, not less frequently than once every 4 years, that the requirements of subparagraph (A) are met with respect to the metropolitan transportation planning process.

‘(2) REQUIREMENTS FOR CERTIFICATION- The Secretary may make a certification under paragraph (1)(B) if--

‘(A) the metropolitan transportation planning process complies with the requirements of this section and other applicable Federal law;

‘(B) representation on the metropolitan planning organization board includes officials of public agencies that administer or operate major modes of transportation in the relevant metropolitan area, including providers of public transportation; and

‘(C) a transportation improvement program for the metropolitan planning area has been approved by the relevant metropolitan planning organization and applicable Governor.

‘(3) DELEGATION OF AUTHORITY- The Secretary may--

‘(A) delegate to the appropriate State fact-finding authority regarding the certification of a tier II MPO under this subsection; and

‘(B) make the certification under paragraph (1) in consultation with the State.

‘(4) EFFECT OF FAILURE TO CERTIFY-

‘(A) WITHHOLDING OF PROJECT FUNDS- If a metropolitan transportation planning process of a metropolitan planning organization is not certified under paragraph (1), the Secretary may withhold up to 20 percent of the funds attributable to the metropolitan planning area of the metropolitan planning organization for projects funded under this chapter and title 23.

‘(B) RESTORATION OF WITHHELD FUNDS- Any funds withheld under subparagraph (A) shall be restored to the metropolitan planning area on the date of certification of the metropolitan transportation planning process by the Secretary.

‘(5) PUBLIC INVOLVEMENT- In making a determination regarding certification under this subsection, the Secretary shall provide for public involvement appropriate to the metropolitan planning area under review.

‘(m) Performance-based Planning Processes Evaluation-

‘(1) IN GENERAL- The Secretary shall establish criteria to evaluate the effectiveness of the performance-based planning processes of metropolitan planning organizations under this section, taking into consideration the following:

‘(A) The extent to which the metropolitan planning organization has achieved, or is currently making substantial progress toward achieving, the performance targets specified in subsection (h)(2), taking into account whether the metropolitan planning organization developed meaningful performance targets.

‘(B) The extent to which the metropolitan planning organization has used proven best practices that help ensure transportation investment that is efficient and cost-effective.

‘(C) The extent to which the metropolitan planning organization--

‘(i) has developed an investment process that relies on public input and awareness to ensure that investments are transparent and accountable; and

‘(ii) provides regular reports allowing the public to access the information being collected in a format that allows the public to meaningfully assess the performance of the metropolitan planning organization.

‘(2) REPORT-

‘(A) IN GENERAL- Not later than 5 years after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall submit to Congress a report evaluating--

‘(i) the overall effectiveness of performance-based planning as a tool for guiding transportation investments; and

‘(ii) the effectiveness of the performance-based planning process of each metropolitan planning organization under this section.

‘(B) PUBLICATION- The report under subparagraph (A) shall be published or otherwise made available in electronically accessible formats and means, including on the Internet.

‘(n) Additional Requirements for Certain Nonattainment Areas-

‘(1) IN GENERAL- Notwithstanding any other provision of this chapter or title 23, Federal funds may not be advanced in any metropolitan planning area classified as a nonattainment area or maintenance area for any highway project that will result in a significant increase in the carrying capacity for single-occupant vehicles, unless the owner or operator of the project demonstrates that the project will achieve or make substantial progress toward achieving the performance targets described in subsection (h)(2).

‘(2) APPLICABILITY- This subsection applies to any nonattainment area or maintenance area within the boundaries of a metropolitan planning area, as determined under subsection (c).

‘(o) Effect of Section- Nothing in this section provides to any metropolitan planning organization the authority to impose any legal requirement on any transportation facility, provider, or project not subject to the requirements of this chapter or title 23.

‘(p) Funding- Funds apportioned under section 104(b)(6) of title 23 and set aside under section 5305(g) of this title shall be available to carry out this section.

‘(q) Continuation of Current Review Practice-

‘(1) IN GENERAL- In consideration of the factors described in paragraph (2), any decision by the Secretary concerning a metropolitan transportation plan or transportation improvement program shall not be considered to be a Federal action subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(2) DESCRIPTION OF FACTORS- The factors referred to in paragraph (1) are that--

‘(A) metropolitan transportation plans and transportation improvement programs are subject to a reasonable opportunity for public comment;

‘(B) the projects included in metropolitan transportation plans and transportation improvement programs are subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

‘(C) decisions by the Secretary concerning metropolitan transportation plans and transportation improvement programs have not been reviewed under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) as of January 1, 1997.

‘(r) Schedule for Implementation- The Secretary shall issue guidance on a schedule for implementation of the changes made by this section, taking into consideration the established planning update cycle for metropolitan planning organizations. The Secretary shall not require a metropolitan planning organization to deviate from its established planning update cycle to implement changes made by this section. Metropolitan planning organizations shall reflect changes made to their transportation plan or transportation improvement program updates not later than 2 years after the date of issuance of guidance by the Secretary.’.

(b) Pilot Program for Transit-oriented Development Planning-

(1) DEFINITIONS- In this subsection the following definitions shall apply:

(A) ELIGIBLE PROJECT- The term ‘eligible project’ means a new fixed guideway capital project or a core capacity improvement project, as those terms are defined in section 5309 of title 49, United States Code, as amended by this division.

(B) SECRETARY- The term ‘Secretary’ means the Secretary of Transportation.

(2) GENERAL AUTHORITY- The Secretary may make grants under this subsection to a State or local governmental authority to assist in financing comprehensive planning associated with an eligible project that seeks to--

(A) enhance economic development, ridership, and other goals established during the project development and engineering processes;

(B) facilitate multimodal connectivity and accessibility;

(C) increase access to transit hubs for pedestrian and bicycle traffic;

(D) enable mixed-use development;

(E) identify infrastructure needs associated with the eligible project; and

(F) include private sector participation.

(3) ELIGIBILITY- A State or local governmental authority that desires to participate in the program under this subsection shall submit to the Secretary an application that contains, at a minimum--

(A) identification of an eligible project;

(B) a schedule and process for the development of a comprehensive plan;

(C) a description of how the eligible project and the proposed comprehensive plan advance the metropolitan transportation plan of the metropolitan planning organization;

(D) proposed performance criteria for the development and implementation of the comprehensive plan; and

(E) identification of--

(i) partners;

(ii) availability of and authority for funding; and

(iii) potential State, local or other impediments to the implementation of the comprehensive plan.

SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

Section 5304 of title 49, United States Code, is amended to read as follows:

‘Sec. 5304. Statewide and nonmetropolitan transportation planning

‘(a) Statewide Transportation Plans and STIPs-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- To accomplish the policy objectives described in section 5303(a), each State shall develop a statewide transportation plan and a statewide transportation improvement program for all areas of the State in accordance with this section.

‘(B) INCORPORATION OF METROPOLITAN TRANSPORTATION PLANS AND TIPS- Each State shall incorporate in the statewide transportation plan and statewide transportation improvement program, without change or by reference, the metropolitan transportation plans and transportation improvement programs, respectively, for each metropolitan planning area in the State.

‘(C) NONMETROPOLITAN AREAS- Each State shall consult with local officials in small urbanized areas with a population of 50,000 or more individuals, but fewer than 200,000 individuals, as calculated according to the most recent decennial census, and nonurbanized areas of the State in preparing the nonmetropolitan portions of statewide transportation plans and statewide transportation improvement programs.

‘(2) CONTENTS- The statewide transportation plan and statewide transportation improvement program developed for each State shall provide for the development and integrated management and operation of transportation systems and facilities (including accessible pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation) that will function as--

‘(A) an intermodal transportation system for the State; and

‘(B) an integral part of an intermodal transportation system for the United States.

‘(3) PROCESS- The process for developing the statewide transportation plan and statewide transportation improvement program shall--

‘(A) provide for consideration of all modes of transportation; and

‘(B) be continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation needs to be addressed.

‘(b) Coordination and Consultation-

‘(1) IN GENERAL- Each State shall--

‘(A) coordinate planning carried out under this section with--

‘(i) the transportation planning activities carried out under section 5303 for metropolitan areas of the State; and

‘(ii) statewide trade and economic development planning activities and related multistate planning efforts;

‘(B) coordinate planning carried out under this section with the transportation planning activities carried out by each nonmetropolitan planning organization in the State, as applicable;

‘(C) consult on planning carried out under this section with the transportation planning activities carried out by each rural planning organization in the State, as applicable; and

‘(D) develop the transportation portion of the State implementation plan as required by the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(2) MULTISTATE AREAS-

‘(A) IN GENERAL- The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan planning area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire metropolitan area.

‘(B) COORDINATION ALONG DESIGNATED TRANSPORTATION CORRIDORS- The Secretary shall encourage each Governor with responsibility for a portion of a multistate transportation corridor to provide coordinated transportation planning for the entire designated corridor.

‘(C) INTERSTATE COMPACTS- For purposes of this section, any 2 or more States--

‘(i) may enter into compacts, agreements, or organizations not in conflict with any Federal law for cooperative efforts and mutual assistance in support of activities authorized under this section, as the activities relate to interstate areas and localities within the States;

‘(ii) may establish such agencies (joint or otherwise) as the States determine to be appropriate for ensuring the effectiveness of the agreements and compacts; and

‘(iii) are encouraged to enter into such compacts, agreements, or organizations as are appropriate to develop planning documents in support of intercity or multistate area projects, facilities, and services, the relevant components of which shall be reflected in statewide transportation improvement programs and statewide transportation plans.

‘(D) RESERVATION OF RIGHTS- The right to alter, amend, or repeal any interstate compact or agreement entered into under this subsection is expressly reserved.

‘(c) Relationship With Other Planning Officials-

‘(1) IN GENERAL- The Secretary shall encourage each State to cooperate with Federal, State, tribal, and local officers and entities responsible for other types of planning activities that are affected by transportation in the relevant area (including planned growth, economic development, infrastructure services, housing, other public services, environmental protection, airport operations, high-speed and intercity passenger rail, freight rail, port access, and freight movements), to the maximum extent practicable, to ensure that the statewide and nonmetropolitan planning process, statewide transportation plans, and statewide transportation improvement programs are developed with due consideration for other related planning activities in the State.

‘(2) INCLUSION- Cooperation under paragraph (1) shall include the design and delivery of transportation services within the State that are provided by--

‘(A) recipients of assistance under sections 202, 203, and 204 of title 23;

‘(B) recipients of assistance under this chapter;

‘(C) government agencies and nonprofit organizations (including representatives of the agencies and organizations) that receive Federal assistance from a source other than the Department of Transportation to provide nonemergency transportation services; and

‘(D) sponsors of regionally significant programs, projects, and services that are related to transportation and receive assistance from any public or private source.

‘(d) Scope of Planning Process-

‘(1) IN GENERAL- The statewide transportation planning process for a State under this section shall provide for consideration of projects, strategies, and services that will--

‘(A) support the economic vitality of the United States, the State, nonmetropolitan areas, and metropolitan areas, especially by enabling global competitiveness, travel and tourism (where applicable), productivity, and efficiency;

‘(B) increase the safety of the transportation system for motorized and nonmotorized users;

‘(C) increase the security of the transportation system for motorized and nonmotorized users;

‘(D) increase the accessibility and mobility of individuals and freight;

‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote consistency between transportation improvements and State and local planned growth and economic development patterns;

‘(F) enhance the integration and connectivity of the transportation system, across and between modes, for individuals and freight;

‘(G) increase efficient system management and operation; and

‘(H) emphasize the preservation of the existing transportation system.

‘(2) PERFORMANCE-BASED APPROACH-

‘(A) IN GENERAL- The statewide transportation planning process shall provide for the establishment and use of a performance-based approach to transportation decisionmaking to support the national goals described in section 5301(c) of this title and in section 150(b) of title 23.

‘(B) SURFACE TRANSPORTATION PERFORMANCE TARGETS-

‘(i) IN GENERAL- Each State shall establish performance targets that address the performance measures described in sections 119(f), 148(h), and 167(i) of title 23 to use in tracking attainment of critical outcomes for the region of the State.

‘(ii) COORDINATION- Selection of performance targets by a State shall be coordinated with relevant metropolitan planning organizations to ensure consistency, to the maximum extent practicable.

‘(C) PUBLIC TRANSPORTATION PERFORMANCE TARGETS- For providers of public transportation operating in urbanized areas with a population of fewer than 200,000 individuals, as calculated according to the most recent decennial census, and not represented by a metropolitan planning organization, each State shall adopt the performance targets identified by such providers of public transportation pursuant to sections 5326(c) and 5329(d), for use in tracking attainment of critical outcomes for the region of the metropolitan planning organization.

‘(D) INTEGRATION OF OTHER PERFORMANCE-BASED PLANS- A State shall integrate into the statewide transportation planning process, directly or by reference, the goals, objectives, performance measures, and performance targets described in this paragraph in other State plans and processes, and asset management and safety plans developed by providers of public transportation in urbanized areas with a population of fewer than 200,000 individuals, as calculated according to the most recent decennial census, and not represented by a metropolitan planning organization, required as part of a performance-based program, including plans such as--

‘(i) the State National Highway System asset management plan;

‘(ii) asset management plans developed by providers of public transportation;

‘(iii) the State strategic highway safety plan;

‘(iv) safety plans developed by providers of public transportation; and

‘(v) the national freight strategic plan.

‘(E) USE OF PERFORMANCE MEASURES AND TARGETS- The performance measures and targets established under this paragraph shall be used, at a minimum, by a State as the basis for development of policies, programs, and investment priorities reflected in the statewide transportation plan and statewide transportation improvement program.

‘(3) FAILURE TO CONSIDER FACTORS- The failure to take into consideration 1 or more of the factors specified in paragraphs (1) and (2) shall not be subject to review by any court under this chapter, title 23, subchapter II of chapter 5 of title 5, or chapter 7 of title 5 in any matter affecting a statewide transportation plan, a statewide transportation improvement program, a project or strategy, or the certification of a planning process.

‘(4) PARTICIPATION BY INTERESTED PARTIES-

‘(A) IN GENERAL- Each State shall provide to--

‘(i) nonmetropolitan local elected officials an opportunity to participate in accordance with subparagraph (B)(i); and

‘(ii) affected individuals, public agencies, and other interested parties notice and a reasonable opportunity to comment on the statewide transportation plan and statewide transportation improvement program.

‘(B) METHODS- In carrying out this paragraph, the State shall--

‘(i) develop and document a consultative process to carry out subparagraph (A)(i) that is separate and discrete from the public involvement process developed under clause (ii);

‘(ii) develop the statewide transportation plan and statewide transportation improvement program in consultation with interested parties, as appropriate, including by the formation of advisory groups representative of the State and interested parties that participate in the development of the statewide transportation plan and statewide transportation improvement program;

‘(iii) hold any public meetings at times and locations that are, as applicable--

‘(I) convenient; and

‘(II) in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);

‘(iv) employ visualization techniques to describe statewide transportation plans and statewide transportation improvement programs; and

‘(v) make public information available in appropriate electronically accessible formats and means, such as the Internet, to afford reasonable opportunity for consideration of public information under subparagraph (A).

‘(e) Coordination and Consultation-

‘(1) METROPOLITAN AREAS-

‘(A) IN GENERAL- Each State shall develop a statewide transportation plan and statewide transportation improvement program for each metropolitan area in the State by incorporating, without change or by reference, at a minimum, as prepared by each metropolitan planning organization designated for the metropolitan area under section 5303--

‘(i) all regionally significant projects to be carried out during the 10-year period beginning on the effective date of the relevant existing metropolitan transportation plan; and

‘(ii) all projects to be carried out during the 4-year period beginning on the effective date of the relevant transportation improvement program.

‘(B) PROJECTED COSTS- Each metropolitan planning organization shall provide to each applicable State a description of the projected costs of implementing the projects included in the metropolitan transportation plan of the metropolitan planning organization for purposes of metropolitan financial planning and fiscal constraint.

‘(2) NONMETROPOLITAN AREAS- With respect to nonmetropolitan areas in a State, the statewide transportation plan and statewide transportation improvement program of the State shall be developed in consultation with affected nonmetropolitan local officials with responsibility for transportation, including providers of public transportation.

‘(3) INDIAN TRIBAL AREAS- With respect to each area of a State under the jurisdiction of an Indian tribe, the statewide transportation plan and statewide transportation improvement program of the State shall be developed in consultation with--

‘(A) the tribal government; and

‘(B) the Secretary of the Interior.

‘(4) FEDERAL LAND MANAGEMENT AGENCIES- With respect to each area of a State under the jurisdiction of a Federal land management agency, the statewide transportation plan and statewide transportation improvement program of the State shall be developed in consultation with the relevant Federal land management agency.

‘(5) CONSULTATION, COMPARISON, AND CONSIDERATION-

‘(A) IN GENERAL- A statewide transportation plan shall be developed, as appropriate, in consultation with Federal, State, tribal, and local agencies responsible for land use management, natural resources, infrastructure permitting, environmental protection, conservation, and historic preservation.

‘(B) COMPARISON AND CONSIDERATION- Consultation under subparagraph (A) shall involve the comparison of statewide transportation plans to, as available--

‘(i) Federal, State, tribal, and local conservation plans or maps; and

‘(ii) inventories of natural or historic resources.

‘(f) Statewide Transportation Plan-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- Each State shall develop a statewide transportation plan, the forecast period of which shall be not less than 20 years for all areas of the State, that provides for the development and implementation of the intermodal transportation system of the State.

‘(B) INITIAL PERIOD- A statewide transportation plan shall include, at a minimum, for the first 10-year period of the statewide transportation plan, the identification of existing and future transportation facilities that will function as an integrated statewide transportation system, giving emphasis to those facilities that serve important national, statewide, and regional transportation functions.

‘(C) SUBSEQUENT PERIOD- For the second 10-year period of the statewide transportation plan (referred to in this subsection as the ‘outer years period’), a statewide transportation plan--

‘(i) may include identification of future transportation facilities; and

‘(ii) shall describe the policies and strategies that provide for the development and implementation of the intermodal transportation system of the State.

‘(D) OTHER REQUIREMENTS- A statewide transportation plan shall--

‘(i) include, for the 20-year period covered by the statewide transportation plan, a description of--

‘(I) the projected aggregate cost of projects anticipated by a State to be implemented; and

‘(II) the revenues necessary to support the projects;

‘(ii) include, in such form as the Secretary determines to be appropriate, a description of--

‘(I) the existing transportation infrastructure, including an identification of highways, local streets and roads, bicycle and pedestrian facilities, public transportation facilities and services, commuter rail facilities and services, high-speed and intercity passenger rail facilities and services, freight facilities (including freight railroad and port facilities), multimodal and intermodal facilities, and intermodal connectors that, evaluated in the aggregate, function as an integrated transportation system;

‘(II) the performance measures and performance targets used in assessing the existing and future performance of the transportation system described in subsection (d)(2);

‘(III) the current and projected future usage of the transportation system, including, to the maximum extent practicable, an identification of existing or planned transportation rights-of-way, corridors, facilities, and related real properties;

‘(IV) a system performance report evaluating the existing and future condition and performance of the transportation system with respect to the performance targets described in subsection (d)(2) and updates to subsequent system performance reports, including--

‘(aa) progress achieved by the State in meeting performance targets, as compared to system performance recorded in previous reports; and

‘(bb) an accounting of the performance by the State on outlay of obligated project funds and delivery of projects that have reached substantial completion, in relation to the projects currently on the statewide transportation improvement program and those projects that have been removed from the previous statewide transportation improvement program;

‘(V) recommended strategies and investments for improving system performance over the planning horizon, including transportation systems management and operations strategies, maintenance strategies, demand management strategies, asset management strategies, capacity and enhancement investments, land use improvements, intelligent transportation systems deployment and technology adoption strategies as determined by the projected support of performance targets described in subsection (d)(2);

‘(VI) recommended strategies and investments to improve and integrate disability-related access to transportation infrastructure;

‘(VII) investment priorities for using projected available and proposed revenues over the short- and long-term stages of the planning horizon, in accordance with the financial plan required under paragraph (2);

‘(VIII) a description of interstate compacts entered into in order to promote coordinated transportation planning in multistate areas, if applicable;

‘(IX) an optional illustrative list of projects containing investments that--

‘(aa) are not included in the statewide transportation plan; but

‘(bb) would be so included if resources in addition to the resources identified in the financial plan under paragraph (2) were available;

‘(X) a discussion (developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies) of types of potential environmental and stormwater mitigation activities and potential areas to carry out those activities, including activities that may have the greatest potential to restore and maintain the environmental functions affected by the statewide transportation plan; and

‘(XI) recommended strategies and investments, including those developed by the State as part of interstate compacts, agreements, or organizations, that support intercity transportation; and

‘(iii) be updated by the State not less frequently than once every 5 years.

‘(2) FINANCIAL PLAN- A financial plan referred to in paragraph (1)(D)(ii)(VII) shall--

‘(A) be prepared by each State to support the statewide transportation plan; and

‘(B) contain a description of the following:

‘(i) Projected resource requirements during the 20-year planning horizon for implementing projects, strategies, and services recommended in the statewide transportation plan, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the State, any public transportation agency, and relevant metropolitan planning organizations, that are reasonably expected to be available to support the investment priorities recommended in the statewide transportation plan.

‘(iv) Each applicable project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(v) For the outer years period of the statewide transportation plan, a description of the aggregate cost ranges or bands, subject to the condition that any future funding source shall be reasonably expected to be available to support the projected cost ranges or bands.

‘(3) COORDINATION WITH CLEAN AIR ACT AGENCIES- For any nonmetropolitan area that is a nonattainment area or maintenance area, the State shall coordinate the development of the statewide transportation plan with the process for development of the transportation control measures of the State implementation plan required by the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(4) PUBLICATION- A statewide transportation plan involving Federal and non-Federal participation programs, projects, and strategies shall be published or otherwise made readily available by the State for public review, including (to the maximum extent practicable) in electronically accessible formats and means, such as the Internet, in such manner as the Secretary shall require.

‘(5) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST- Notwithstanding paragraph (2), a State shall not be required to select any project from the illustrative list of additional projects included in the statewide transportation plan under paragraph (1)(D)(ii)(IX).

‘(6) USE OF POLICY PLANS- Notwithstanding any other provision of this section, a State that has in effect, as of the date of enactment of the Federal Public Transportation Act of 2012, a statewide transportation plan that follows a policy plan approach--

‘(A) may, for 4 years after the date of enactment of the Federal Public Transportation Act of 2012, continue to use a policy plan approach to the statewide transportation plan; and

‘(B) shall be subject to the requirements of this subsection only to the extent that such requirements were applicable under this section (as in effect on the day before the date of enactment of the Federal Public Transportation Act of 2012).

‘(g) Statewide Transportation Improvement Programs-

‘(1) DEVELOPMENT-

‘(A) IN GENERAL- In consultation with nonmetropolitan officials with responsibility for transportation and affected public transportation operators, the State shall develop a statewide transportation improvement program for the State that--

‘(i) includes projects consistent with the statewide transportation plan;

‘(ii) reflects the investment priorities established in the statewide transportation plan; and

‘(iii) once implemented, makes significant progress toward achieving the performance targets described in subsection (d)(2).

‘(B) OPPORTUNITY FOR PARTICIPATION- In developing a statewide transportation improvement program, the State, in cooperation with affected public transportation operators, shall provide an opportunity for participation by interested parties (including State representatives of nonmotorized users) in the development of the statewide transportation improvement program, in accordance with subsection (e).

‘(C) OTHER REQUIREMENTS-

‘(i) IN GENERAL- A statewide transportation improvement program shall--

‘(I) cover a period of not less than 4 years; and

‘(II) be updated not less frequently than once every 4 years, or more frequently, as the Governor determines to be appropriate.

‘(ii) INCORPORATION OF TIPS- A statewide transportation improvement program shall incorporate any relevant transportation improvement program developed by a metropolitan planning organization under section 5303, without change.

‘(iii) PROJECTS- Each project included in a statewide transportation improvement program shall be--

‘(I) consistent with the statewide transportation plan developed under this section for the State;

‘(II) identical to a project or phase of a project described in a relevant transportation improvement program; and

‘(III) for any project located in a nonattainment area or maintenance area, carried out in accordance with the applicable State air quality implementation plan developed under the Clean Air Act (42 U.S.C. 7401 et seq.).

‘(2) CONTENTS-

‘(A) PRIORITY LIST- A statewide transportation improvement program shall include a priority list of proposed federally supported projects and strategies, to be carried out during the 4-year period beginning on the date of adoption of the statewide transportation improvement program, and during each 4-year period thereafter, using existing and reasonably available revenues in accordance with the financial plan under paragraph (3).

‘(B) DESCRIPTIONS- Each project or phase of a project included in a statewide transportation improvement program shall include sufficient descriptive material (such as type of work, termini, length, estimated completion date, and other similar factors) to identify--

‘(i) the project or project phase; and

‘(ii) the effect that the project or project phase will have in addressing the performance targets described in subsection (d)(2).

‘(C) PERFORMANCE TARGET ACHIEVEMENT- A statewide transportation improvement program shall include, to the maximum extent practicable, a discussion of the anticipated effect of the statewide transportation improvement program toward achieving the performance targets established in the statewide transportation plan, linking investment priorities to those performance targets.

‘(D) ILLUSTRATIVE LIST OF PROJECTS- An optional illustrative list of projects may be prepared containing additional investment priorities that--

‘(i) are not included in the statewide transportation improvement program; but

‘(ii) would be so included if resources in addition to the resources identified in the financial plan under paragraph (3) were available.

‘(3) FINANCIAL PLAN- A financial plan referred to in paragraph (2)(D)(ii) shall--

‘(A) be prepared by each State to support the statewide transportation improvement program; and

‘(B) contain a description of the following:

‘(i) Projected resource requirements for implementing projects, strategies, and services recommended in the statewide transportation improvement program, including existing and projected system operating and maintenance needs, proposed enhancement and expansions to the system, projected available revenue from Federal, State, local, and private sources, and innovative financing techniques to finance projects and programs.

‘(ii) The projected difference between costs and revenues, and strategies for securing additional new revenue (such as by capture of some of the economic value created by any new investment).

‘(iii) Estimates of future funds, to be developed cooperatively by the State and relevant metropolitan planning organizations and public transportation agencies, that are reasonably expected to be available to support the investment priorities recommended in the statewide transportation improvement program.

‘(iv) Each applicable project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

‘(4) INCLUDED PROJECTS-

‘(A) PROJECTS UNDER THIS CHAPTER AND TITLE 23- A statewide transportation improvement program developed under this subsection for a State shall include the projects within the State that are proposed for funding under this chapter and chapter 1 of title 23.

‘(B) PROJECTS UNDER THIS CHAPTER AND CHAPTER 2-

‘(i) REGIONALLY SIGNIFICANT- Each regionally significant project proposed for funding under this chapter and chapter 2 of title 23 shall be identified individually in the statewide transportation improvement program.

‘(ii) NONREGIONALLY SIGNIFICANT- A description of each project proposed for funding under this chapter and chapter 2 of title 23 that is not determined to be regionally significant shall be contained in 1 line item or identified individually in the statewide transportation improvement program.

‘(5) PUBLICATION-

‘(A) IN GENERAL- A statewide transportation improvement program shall be published or otherwise made readily available by the State for public review in electronically accessible formats and means, such as the Internet.

‘(B) ANNUAL LIST OF PROJECTS- An annual list of projects, including investments in pedestrian walkways, bicycle transportation facilities, and intermodal facilities that support intercity transportation, for which Federal funds have been obligated during the preceding fiscal year shall be published or otherwise made available by the cooperative effort of the State, public transportation operator, and relevant metropolitan planning organizations in electronically accessible formats and means, such as the Internet, in a manner that is consistent with the categories identified in the relevant statewide transportation improvement program.

‘(6) PROJECT SELECTION FOR URBANIZED AREAS WITH POPULATIONS OF FEWER THAN 200,000 NOT REPRESENTED BY DESIGNATED MPOS- Projects carried out in urbanized areas with populations of fewer than 200,000 individuals, as calculated according to the most recent decennial census, and that are not represented by designated metropolitan planning organizations, shall be selected from the approved statewide transportation improvement program (including projects carried out under this chapter and projects carried out on the National Highway System) by the State, in cooperation with the affected nonmetropolitan planning organization, if any exists, and in consultation with the affected nonmetropolitan area local officials with responsibility for transportation.

‘(7) APPROVAL BY SECRETARY-

‘(A) IN GENERAL- Not less frequently than once every 4 years, a statewide transportation improvement program developed under this subsection shall be reviewed and approved by the Secretary, based on the current planning finding of the Secretary under subparagraph (B).

‘(B) PLANNING FINDING- The Secretary shall make a planning finding referred to in subparagraph (A) not less frequently than once every 5 years regarding whether the transportation planning process through which statewide transportation plans and statewide transportation improvement programs are developed is consistent with this section and section 5303.

‘(8) MODIFICATIONS TO PROJECT PRIORITY- Notwithstanding any other provision of law, approval by the Secretary shall not be required to carry out a project included in an approved statewide transportation improvement program in place of another project in the statewide transportation improvement program.

‘(h) Certification-

‘(1) IN GENERAL- The Secretary shall--

‘(A) ensure that the statewide transportation planning process of a State is being carried out in accordance with this section and applicable Federal law (including rules and regulations); and

‘(B) subject to paragraph (2), certify, not later than 180 days after the date of enactment of the Federal Public Transportation Act of 2012 and not less frequently than once every 5 years thereafter, that the requirements of subparagraph (A) are met with respect to the statewide transportation planning process.

‘(2) REQUIREMENTS FOR CERTIFICATION- The Secretary may make a certification under paragraph (1)(B) if--

‘(A) the statewide transportation planning process complies with the requirements of this section and other applicable Federal law; and

‘(B) a statewide transportation improvement program for the State has been approved by the Governor of the State.

‘(3) EFFECT OF FAILURE TO CERTIFY-

‘(A) WITHHOLDING OF PROJECT FUNDS- If a statewide transportation planning process of a State is not certified under paragraph (1), the Secretary may withhold up to 20 percent of the funds attributable to the State for projects funded under this chapter and title 23.

‘(B) RESTORATION OF WITHHELD FUNDS- Any funds withheld under subparagraph (A) shall be restored to the State on the date of certification of the statewide transportation planning process by the Secretary.

‘(4) PUBLIC INVOLVEMENT- In making a determination regarding certification under this subsection, the Secretary shall provide for public involvement appropriate to the State under review.

‘(i) Performance-based Planning Processes Evaluation-

‘(1) IN GENERAL- The Secretary shall establish criteria to evaluate the effectiveness of the performance-based planning processes of States, taking into consideration the following:

‘(A) The extent to which the State has achieved, or is currently making substantial progress toward achieving, the performance targets described in subsection (d)(2), taking into account whether the State developed meaningful performance targets.

‘(B) The extent to which the State has used proven best practices that help ensure transportation investment that is efficient and cost-effective.

‘(C) The extent to which the State--

‘(i) has developed an investment process that relies on public input and awareness to ensure that investments are transparent and accountable; and

‘(ii) provides regular reports allowing the public to access the information being collected in a format that allows the public to meaningfully assess the performance of the State.

‘(2) REPORT-

‘(A) IN GENERAL- Not later than 5 years after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall submit to Congress a report evaluating--

‘(i) the overall effectiveness of performance-based planning as a tool for guiding transportation investments; and

‘(ii) the effectiveness of the performance-based planning process of each State.

‘(B) PUBLICATION- The report under subparagraph (A) shall be published or otherwise made available in electronically accessible formats and means, including on the Internet.

‘(j) Funding- Funds apportioned under section 104(b)(6) of title 23 and set aside under section 5305(g) shall be available to carry out this section.

‘(k) Continuation of Current Review Practice-

‘(1) IN GENERAL- In consideration of the factors described in paragraph (2), any decision by the Secretary concerning a statewide transportation plan or statewide transportation improvement program shall not be considered to be a Federal action subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

‘(2) DESCRIPTION OF FACTORS- The factors referred to in paragraph (1) are that--

‘(A) statewide transportation plans and statewide transportation improvement programs are subject to a reasonable opportunity for public comment;

‘(B) the projects included in statewide transportation plans and statewide transportation improvement programs are subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

‘(C) decisions by the Secretary concerning statewide transportation plans and statewide transportation improvement programs have not been reviewed under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) as of January 1, 1997.

‘(l) Schedule for Implementation- The Secretary shall issue guidance on a schedule for implementation of the changes made by this section, taking into consideration the established planning update cycle for States. The Secretary shall not require a State to deviate from its established planning update cycle to implement changes made by this section. States shall reflect changes made to their transportation plan or transportation improvement program updates not later than 2 years after the date of issuance of guidance by the Secretary under this subsection.’.

SEC. 20007. PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM.

(a) In General- Section 5306 of title 49, United States Code, is amended to read as follows:

‘Sec. 5306. Public transportation emergency relief program

‘(a) Definition- In this section the following definitions shall apply:

‘(1) ELIGIBLE OPERATING COSTS- The term ‘eligible operating costs’ means costs relating to--

‘(A) evacuation services;

‘(B) rescue operations;

‘(C) temporary public transportation service; or

‘(D) reestablishing, expanding, or relocating public transportation route service before, during, or after an emergency.

‘(2) EMERGENCY- The term ‘emergency’ means a natural disaster affecting a wide area (such as a flood, hurricane, tidal wave, earthquake, severe storm, or landslide) or a catastrophic failure from any external cause, as a result of which--

‘(A) the Governor of a State has declared an emergency and the Secretary has concurred; or

‘(B) the President has declared a major disaster under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170).

‘(b) General Authority- The Secretary may make grants and enter into contracts and other agreements (including agreements with departments, agencies, and instrumentalities of the Government) for--

‘(1) capital projects to protect, repair, reconstruct, or replace equipment and facilities of a public transportation system operating in the United States or on an Indian reservation that the Secretary determines is in danger of suffering serious damage, or has suffered serious damage, as a result of an emergency; and

‘(2) eligible operating costs of public transportation equipment and facilities in an area directly affected by an emergency during--

‘(A) the 1-year period beginning on the date of a declaration described in subsection (a)(2); or

‘(B) if the Secretary determines there is a compelling need, the 2-year period beginning on the date of a declaration described in subsection (a)(2).

‘(c) Coordination of Emergency Funds-

‘(1) USE OF FUNDS- Funds appropriated to carry out this section shall be in addition to any other funds available under this chapter.

‘(2) NO EFFECT ON OTHER GOVERNMENT ACTIVITY- The provision of funds under this section shall not affect the ability of any other agency of the Government, including the Federal Emergency Management Agency, or a State agency, a local governmental entity, organization, or person, to provide any other funds otherwise authorized by law.

‘(3) NOTIFICATION- The Secretary shall notify the Secretary of Homeland Security of the purpose and amount of any grant made or contract or other agreement entered into under this section.

‘(d) Grant Requirements- A grant awarded under this section or under section 5307 or 5311 that is made to address an emergency defined under subsection (a)(2) shall be--

‘(1) subject to the terms and conditions the Secretary determines are necessary; and

‘(2) made only for expenses that are not reimbursed under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

‘(e) Government Share of Costs-

‘(1) CAPITAL PROJECTS AND OPERATING ASSISTANCE- A grant, contract, or other agreement for a capital project or eligible operating costs under this section shall be, at the option of the recipient, for not more than 80 percent of the net project cost, as determined by the Secretary.

‘(2) NON-FEDERAL SHARE- The remainder of the net project cost may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital.

‘(3) WAIVER- The Secretary may waive, in whole or part, the non-Federal share required under--

‘(A) paragraph (2); or

‘(B) section 5307 or 5311, in the case of a grant made available under section 5307 or 5311, respectively, to address an emergency.’.

(b) Memorandum of Agreement-

(1) PURPOSES- The purposes of this subsection are--

(A) to improve coordination between the Department of Transportation and the Department of Homeland Security; and

(B) to expedite the provision of Federal assistance for public transportation systems for activities relating to a major disaster or emergency declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) (referred to in this subsection as a ‘major disaster or emergency’).

(2) AGREEMENT- Not later than 180 days after the date of enactment of this Act, the Secretary of Transportation and the Secretary of Homeland Security shall enter into a memorandum of agreement to coordinate the roles and responsibilities of the Department of Transportation and the Department of Homeland Security in providing assistance for public transportation, including the provision of public transportation services and the repair and restoration of public transportation systems in areas for which the President has declared a major disaster or emergency.

(3) CONTENTS OF AGREEMENT- The memorandum of agreement required under paragraph (2) shall--

(A) provide for improved coordination and expeditious use of public transportation, as appropriate, in response to and recovery from a major disaster or emergency;

(B) establish procedures to address--

(i) issues that have contributed to delays in the reimbursement of eligible transportation-related expenses relating to a major disaster or emergency;

(ii) any challenges identified in the review under paragraph (4); and

(iii) the coordination of assistance for public transportation provided under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and section 5306 of title 49, United States Code, as amended by this Act, as appropriate; and

(C) provide for the development and distribution of clear guidelines for State, local, and tribal governments, including public transportation systems, relating to--

(i) assistance available for public transportation systems for activities relating to a major disaster or emergency--

(I) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act;

(II) under section 5306 of title 49, United States Code, as amended by this Act; and

(III) from other sources, including other Federal agencies; and

(ii) reimbursement procedures that speed the process of--

(I) applying for assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and section 5306 of title 49, United States Code, as amended by this Act; and

(II) distributing assistance for public transportation systems under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and section 5306 of title 49, United States Code, as amended by this Act.

(4) AFTER ACTION REVIEW- Before entering into a memorandum of agreement under paragraph (2), the Secretary of Transportation and the Secretary of Homeland Security (acting through the Administrator of the Federal Emergency Management Agency), in consultation with State, local, and tribal governments (including public transportation systems) that have experienced a major disaster or emergency, shall review after action reports relating to major disasters, emergencies, and exercises, to identify areas where coordination between the Department of Transportation and the Department of Homeland Security and the provision of public transportation services should be improved.

(5) FACTORS FOR DECLARATIONS OF MAJOR DISASTERS AND EMERGENCIES- The Administrator of the Federal Emergency Management Agency shall make available to State, local, and tribal governments, including public transportation systems, a description of the factors that the President considers in declaring a major disaster or emergency, including any pre-disaster emergency declaration policies.

(6) BRIEFINGS-

(A) INITIAL BRIEFING- Not later than 180 days after the date of enactment of this Act, the Secretary of Transportation and the Secretary of Homeland Security shall jointly brief the Committee on Banking, Housing, and Urban Affairs and the Committee on Homeland Security and Governmental Affairs of the Senate on the memorandum of agreement required under paragraph (2).

(B) QUARTERLY BRIEFINGS- Each quarter of the 1-year period beginning on the date on which the Secretary of Transportation and the Secretary of Homeland Security enter into the memorandum of agreement required under paragraph (2), the Secretary of Transportation and the Secretary of Homeland Security shall jointly brief the Committee on Banking, Housing, and Urban Affairs and the Committee on Homeland Security and Governmental Affairs of the Senate on the implementation of the memorandum of agreement.

SEC. 20008. URBANIZED AREA FORMULA GRANTS.

Section 5307 of title 49, United States Code, is amended to read as follows:

‘Sec. 5307. Urbanized area formula grants

‘(a) General Authority-

‘(1) GRANTS- The Secretary may make grants under this section for--

‘(A) capital projects;

‘(B) planning; and

‘(C) operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of fewer than 200,000 individuals, as determined by the Bureau of the Census.

‘(2) SPECIAL RULE- The Secretary may make grants under this section to finance the operating cost of equipment and facilities for use in public transportation, excluding rail fixed guideway, in an urbanized area with a population of not fewer than 200,000 individuals, as determined by the Bureau of the Census--

‘(A) for public transportation systems that operate 75 or fewer buses during peak service hours, in an amount not to exceed 75 percent of the share of the apportionment which is attributable to such systems within the urbanized area, as measured by vehicle revenue hours; and

‘(B) for public transportation systems that operate a minimum of 76 buses and a maximum of 100 buses during peak service hours, in an amount not to exceed 50 percent of the share of the apportionment which is attributable to such systems within the urbanized area, as measured by vehicle revenue hours.

‘(3) TEMPORARY AND TARGETED ASSISTANCE-

‘(A) ELIGIBILITY- The Secretary may make a grant under this section to finance the operating cost of equipment and facilities to a recipient for use in public transportation in an area that the Secretary determines has--

‘(i) a population of not fewer than 200,000 individuals, as determined by the Bureau of the Census; and

‘(ii) a 3-month unemployment rate, as reported by the Bureau of Labor Statistics, that is--

‘(I) greater than 7 percent; and

‘(II) at least 2 percentage points greater than the lowest 3-month unemployment rate for the area during the 5-year period preceding the date of the determination.

‘(B) AWARD OF GRANT-

‘(i) IN GENERAL- Except as otherwise provided in this subparagraph, the Secretary may make a grant under this section for not more than 2 consecutive fiscal years.

‘(ii) ADDITIONAL YEAR- If, at the end of the second fiscal year following the date on which the Secretary makes a determination under subparagraph (A) with respect to an area, the Secretary determines that the 3-month unemployment rate for the area is at least 2 percentage points greater than the unemployment rate for the area at the time the Secretary made the determination under subparagraph (A), the Secretary may make a grant to a recipient in the area for 1 additional consecutive fiscal year.

‘(iii) EXCLUSION PERIOD- Beginning on the last day of the last consecutive fiscal year for which a recipient receives a grant under this paragraph, the Secretary may not make a subsequent grant under this paragraph to the recipient for a number of fiscal years equal to the number of consecutive fiscal years in which the recipient received a grant under this paragraph.

‘(C) LIMITATION-

‘(i) FIRST FISCAL YEAR- For the first fiscal year following the date on which the Secretary makes a determination under subparagraph (A) with respect to an area, not more than 25 percent of the amount apportioned to a designated recipient under section 5336 for the fiscal year shall be available for operating assistance for the area.

‘(ii) SECOND AND THIRD FISCAL YEARS- For the second and third fiscal years following the date on which the Secretary makes a determination under subparagraph (A) with respect to an area, not more than 20 percent of the amount apportioned to a designated recipient under section 5336 for the fiscal year shall be available for operating assistance for the area.

‘(D) PERIOD OF AVAILABILITY FOR OPERATING ASSISTANCE- Operating assistance awarded under this paragraph shall be available for expenditure to a recipient in an area until the end of the second fiscal year following the date on which the Secretary makes a determination under subparagraph (A) with respect to the area, after which time any unexpended funds shall be available to the recipient for other eligible activities under this section.

‘(E) CERTIFICATION- The Secretary may make a grant for operating assistance under this paragraph for a fiscal year only if the recipient certifies that--

‘(i) the recipient will maintain public transportation service levels at or above the current service level, which shall be demonstrated by providing an equal or greater number of vehicle hours of service in the fiscal year than the number of vehicle hours of service provided in the preceding fiscal year;

‘(ii) any non-Federal entity that provides funding to the recipient, including a State or local governmental entity, will maintain the tax rate or rate of allocations dedicated to public transportation at or above the rate for the preceding fiscal year;

‘(iii) the recipient has allocated the maximum amount of funding under this section for preventive maintenance costs eligible as a capital expense necessary to maintain the level and quality of service provided in the preceding fiscal year; and

‘(iv) the recipient will not use funding under this section for new capital assets except as necessary for the existing system to maintain or achieve a state of good repair, assure safety, or replace obsolete technology.

‘(b) Access to Jobs Projects-

‘(1) IN GENERAL- A designated recipient shall expend not less than 3 percent of the amount apportioned to the designated recipient under section 5336 or an amount equal to the amount apportioned to the designated recipient in fiscal year 2011 to carry out section 5316 (as in effect for fiscal year 2011), whichever is less, to carry out a program to develop and maintain job access projects. Eligible projects may include--

‘(A) a project relating to the development and maintenance of public transportation services designed to transport eligible low-income individuals to and from jobs and activities related to their employment, including--

‘(i) a public transportation project to finance planning, capital, and operating costs of providing access to jobs under this chapter;

‘(ii) promoting public transportation by low-income workers, including the use of public transportation by workers with nontraditional work schedules;

‘(iii) promoting the use of public transportation vouchers for welfare recipients and eligible low-income individuals; and

‘(iv) promoting the use of employer-provided transportation, including the transit pass benefit program under section 132 of the Internal Revenue Code of 1986; and

‘(B) a transportation project designed to support the use of public transportation including--

‘(i) enhancements to existing public transportation service for workers with non-traditional hours or reverse commutes;

‘(ii) guaranteed ride home programs;

‘(iii) bicycle storage facilities; and

‘(iv) projects that otherwise facilitate the provision of public transportation services to employment opportunities.

‘(2) PROJECT SELECTION AND PLAN DEVELOPMENT- Each grant recipient under this subsection shall certify that--

‘(A) the projects selected were included in a locally developed, coordinated public transit-human services transportation plan;

‘(B) the plan was developed and approved through a process that included individuals with low incomes, representatives of public, private, and nonprofit transportation and human services providers, and participation by the public;

‘(C) services funded under this subsection are coordinated with transportation services funded by other Federal departments and agencies to the maximum extent feasible; and

‘(D) allocations of the grant to subrecipients, if any, are distributed on a fair and equitable basis.

‘(3) COMPETITIVE PROCESS FOR GRANTS TO SUBRECIPIENTS-

‘(A) AREAWIDE SOLICITATIONS- A recipient of funds apportioned under this subsection may conduct, in cooperation with the appropriate metropolitan planning organization, an areawide solicitation for applications for grants to the recipient and subrecipients under this subsection.

‘(B) APPLICATION- If the recipient elects to engage in a competitive process, recipients and subrecipients seeking to receive a grant from apportioned funds shall submit to the recipient an application in the form and in accordance with such requirements as the recipient shall establish.

‘(c) Program of Projects- Each recipient of a grant shall--

‘(1) make available to the public information on amounts available to the recipient under this section;

‘(2) develop, in consultation with interested parties, including private transportation providers, a proposed program of projects for activities to be financed;

‘(3) publish a proposed program of projects in a way that affected individuals, private transportation providers, and local elected officials have the opportunity to examine the proposed program and submit comments on the proposed program and the performance of the recipient;

‘(4) provide an opportunity for a public hearing in which to obtain the views of individuals on the proposed program of projects;

‘(5) ensure that the proposed program of projects provides for the coordination of public transportation services assisted under section 5336 of this title with transportation services assisted from other United States Government sources;

‘(6) consider comments and views received, especially those of private transportation providers, in preparing the final program of projects; and

‘(7) make the final program of projects available to the public.

‘(d) Grant Recipient Requirements- A recipient may receive a grant in a fiscal year only if--

‘(1) the recipient, within the time the Secretary prescribes, submits a final program of projects prepared under subsection (c) of this section and a certification for that fiscal year that the recipient (including a person receiving amounts from a Governor under this section)--

‘(A) has or will have the legal, financial, and technical capacity to carry out the program, including safety and security aspects of the program;

‘(B) has or will have satisfactory continuing control over the use of equipment and facilities;

‘(C) will maintain equipment and facilities;

‘(D) will ensure that, during non-peak hours for transportation using or involving a facility or equipment of a project financed under this section, a fare that is not more than 50 percent of the peak hour fare will be charged for any--

‘(i) senior;

‘(ii) individual who, because of illness, injury, age, congenital malfunction, or other incapacity or temporary or permanent disability (including an individual who is a wheelchair user or has semiambulatory capability), cannot use a public transportation service or a public transportation facility effectively without special facilities, planning, or design; and

‘(iii) individual presenting a Medicare card issued to that individual under title II or XVIII of the Social Security Act (42 U.S.C. 401 et seq. and 1395 et seq.);

‘(E) in carrying out a procurement under this section, will comply with sections 5323 and 5325;

‘(F) has complied with subsection (c) of this section;

‘(G) has available and will provide the required amounts as provided by subsection (e) of this section;

‘(H) will comply with sections 5303 and 5304;

‘(I) has a locally developed process to solicit and consider public comment before raising a fare or carrying out a major reduction of transportation;

‘(J)(i) will expend for each fiscal year for public transportation security projects, including increased lighting in or adjacent to a public transportation system (including bus stops, subway stations, parking lots, and garages), increased camera surveillance of an area in or adjacent to that system, providing an emergency telephone line to contact law enforcement or security personnel in an area in or adjacent to that system, and any other project intended to increase the security and safety of an existing or planned public transportation system, at least 1 percent of the amount the recipient receives for each fiscal year under section 5336 of this title; or

‘(ii) has decided that the expenditure for security projects is not necessary;

‘(K) in the case of a recipient for an urbanized area with a population of not fewer than 200,000 individuals, as determined by the Bureau of the Census--

‘(i) will expend not less than 1 percent of the amount the recipient receives each fiscal year under this section for associated transit improvements, as defined in section 5302; and

‘(ii) will submit an annual report listing projects carried out in the preceding fiscal year with those funds; and

‘(L) will comply with section 5329(d); and

‘(2) the Secretary accepts the certification.

‘(e) Government Share of Costs-

‘(1) CAPITAL PROJECTS- A grant for a capital project under this section shall be for 80 percent of the net project cost of the project. The recipient may provide additional local matching amounts.

‘(2) OPERATING EXPENSES- A grant for operating expenses under this section may not exceed 50 percent of the net project cost of the project.

‘(3) REMAINING COSTS- Subject to paragraph (4), the remainder of the net project costs shall be provided--

‘(A) in cash from non-Government sources other than revenues from providing public transportation services;

‘(B) from revenues from the sale of advertising and concessions;

‘(C) from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital;

‘(D) from amounts appropriated or otherwise made available to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation; and

‘(E) from amounts received under a service agreement with a State or local social service agency or private social service organization.

‘(4) USE OF CERTAIN FUNDS- For purposes of subparagraphs (D) and (E) of paragraph (3), the prohibitions on the use of funds for matching requirements under section 403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or State funds to be used for transportation purposes.

‘(f) Undertaking Projects in Advance-

‘(1) PAYMENT- The Secretary may pay the Government share of the net project cost to a State or local governmental authority that carries out any part of a project eligible under subparagraph (A) or (B) of subsection (a)(1) without the aid of amounts of the Government and according to all applicable procedures and requirements if--

‘(A) the recipient applies for the payment;

‘(B) the Secretary approves the payment; and

‘(C) before carrying out any part of the project, the Secretary approves the plans and specifications for the part in the same way as for other projects under this section.

‘(2) APPROVAL OF APPLICATION- The Secretary may approve an application under paragraph (1) of this subsection only if an authorization for this section is in effect for the fiscal year to which the application applies. The Secretary may not approve an application if the payment will be more than--

‘(A) the recipient’s expected apportionment under section 5336 of this title if the total amount authorized to be appropriated for the fiscal year to carry out this section is appropriated; less

‘(B) the maximum amount of the apportionment that may be made available for projects for operating expenses under this section.

‘(3) FINANCING COSTS-

‘(A) IN GENERAL- The cost of carrying out part of a project includes the amount of interest earned and payable on bonds issued by the recipient to the extent proceeds of the bonds are expended in carrying out the part.

‘(B) LIMITATION ON THE AMOUNT OF INTEREST- The amount of interest allowed under this paragraph may not be more than the most favorable financing terms reasonably available for the project at the time of borrowing.

‘(C) CERTIFICATION- The applicant shall certify, in a manner satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms.

‘(g) Reviews, Audits, and Evaluations-

‘(1) ANNUAL REVIEW-

‘(A) IN GENERAL- At least annually, the Secretary shall carry out, or require a recipient to have carried out independently, reviews and audits the Secretary considers appropriate to establish whether the recipient has carried out--

‘(i) the activities proposed under subsection (d) of this section in a timely and effective way and can continue to do so; and

‘(ii) those activities and its certifications and has used amounts of the Government in the way required by law.

‘(B) AUDITING PROCEDURES- An audit of the use of amounts of the Government shall comply with the auditing procedures of the Comptroller General.

‘(2) TRIENNIAL REVIEW- At least once every 3 years, the Secretary shall review and evaluate completely the performance of a recipient in carrying out the recipient’s program, specifically referring to compliance with statutory and administrative requirements and the extent to which actual program activities are consistent with the activities proposed under subsection (d) of this section and the planning process required under sections 5303, 5304, and 5305 of this title. To the extent practicable, the Secretary shall coordinate such reviews with any related State or local reviews.

‘(3) ACTIONS RESULTING FROM REVIEW, AUDIT, OR EVALUATION- The Secretary may take appropriate action consistent with a review, audit, and evaluation under this subsection, including making an appropriate adjustment in the amount of a grant or withdrawing the grant.

‘(h) Treatment- For purposes of this section, the United States Virgin Islands shall be treated as an urbanized area, as defined in section 5302.

‘(i) Passenger Ferry Grant Program-

‘(1) IN GENERAL- The Secretary may make grants under this subsection to recipients for passenger ferry projects that are eligible for a grant under subsection (a).

‘(2) GRANT REQUIREMENTS- Except as otherwise provided in this subsection, a grant under this subsection shall be subject to the same terms and conditions as a grant under subsection (a).

‘(3) COMPETITIVE PROCESS- The Secretary shall solicit grant applications and make grants for eligible projects on a competitive basis.

‘(4) GEOGRAPHICALLY CONSTRAINED AREAS- Of the amounts made available to carry out this subsection, $10,000,000 shall be for capital grants relating to passenger ferries in areas with limited or no access to public transportation as a result of geographical constraints.’.

SEC. 20009. CLEAN FUEL GRANT PROGRAM.

Section 5308 of title 49, United States Code, is amended to read as follows:

‘Sec. 5308. Clean fuel grant program

‘(a) Definitions- In this section, the following definitions shall apply:

‘(1) CLEAN FUEL BUS- The term ‘clean fuel bus’ means a bus that is a clean fuel vehicle.

‘(2) CLEAN FUEL VEHICLE- The term ‘clean fuel vehicle’ means--

‘(A) a passenger vehicle used to provide public transportation that the Administrator of the Environmental Protection Agency has certified sufficiently reduces energy consumption or reduces harmful emissions, including direct carbon emissions, when compared to a comparable standard vehicle; or

‘(B) a zero emission bus used to provide public transportation.

‘(3) DIRECT CARBON EMISSIONS- The term ‘direct carbon emissions’ means the quantity of direct greenhouse gas emissions from a vehicle, as determined by the Administrator of the Environmental Protection Agency.

‘(4) ELIGIBLE AREA- The term ‘eligible area’ means an area that is--

‘(A) designated as a nonattainment area for ozone or carbon monoxide under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)); or

‘(B) a maintenance area, as defined in section 5303, for ozone or carbon monoxide.

‘(5) ELIGIBLE PROJECT- The term ‘eligible project’ means a project or program of projects in an eligible area for--

‘(A) acquiring or leasing clean fuel vehicles;

‘(B) constructing or leasing facilities and related equipment for clean fuel vehicles;

‘(C) constructing new public transportation facilities to accommodate clean fuel vehicles; or

‘(D) rehabilitating or improving existing public transportation facilities to accommodate clean fuel vehicles.

‘(6) RECIPIENT- The term ‘recipient’ means--

‘(A) for an eligible area that is an urbanized area with a population of fewer than 200,000 individuals, as determined by the Bureau of the Census, the State in which the eligible area is located; and

‘(B) for an eligible area not described in subparagraph (A), the designated recipient for the eligible area.

‘(7) ZERO EMISSION BUS- The term ‘zero emission bus’ means a clean fuel vehicle that produces no carbon or particulate matter.

‘(b) Authority- The Secretary may make grants to recipients to finance eligible projects under this section.

‘(c) Grant Requirements-

‘(1) IN GENERAL- A grant under this section shall be subject to the requirements of section 5307.

‘(2) GOVERNMENT SHARE OF COSTS FOR CERTAIN PROJECTS- Section 5323(j) applies to projects carried out under this section, unless the grant recipient requests a lower grant percentage.

‘(3) COMBINATION OF FUNDING SOURCES-

‘(A) COMBINATION PERMITTED- A project carried out under this section may receive funding under section 5307, or any other provision of law.

‘(B) GOVERNMENT SHARE- Nothing in this paragraph may be construed to alter the Government share required under this section, section 5307, or any other provision of law.

‘(d) Minimum Amounts- Of amounts made available by or appropriated under section 5338(a)(2)(D) in each fiscal year to carry out this section--

‘(1) not less than 65 percent shall be made available to fund eligible projects relating to clean fuel buses; and

‘(2) not less than 10 percent shall be made available for eligible projects relating to facilities and related equipment for clean fuel buses.

‘(e) Competitive Process- The Secretary shall solicit grant applications and make grants for eligible projects on a competitive basis.

‘(f) Priority Consideration- In making grants under this section, the Secretary shall give priority to projects relating to clean fuel buses that make greater reductions in energy consumption and harmful emissions, including direct carbon emissions, than comparable standard buses or other clean fuel buses.

‘(g) Availability of Funds- Any amounts made available or appropriated to carry out this section--

‘(1) shall remain available to an eligible project for 2 years after the fiscal year for which the amount is made available or appropriated; and

‘(2) that remain unobligated at the end of the period described in paragraph (1) shall be added to the amount made available to an eligible project in the following fiscal year.’.

SEC. 20010. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS.

(a) In General- Section 5309 of title 49, United States Code, is amended to read as follows:

‘Sec. 5309. Fixed guideway capital investment grants

‘(a) Definitions- In this section, the following definitions shall apply:

‘(1) APPLICANT- The term ‘applicant’ means a State or local governmental authority that applies for a grant under this section.

‘(2) BUS RAPID TRANSIT PROJECT- The term ‘bus rapid transit project’ means a single route bus capital project--

‘(A) if--

‘(i) a majority of the project operates in a separated right-of-way dedicated for public transportation use during peak periods; or

‘(ii) a substantial portion of the project operates in a separated right-of-way that is semi-dedicated for public transportation use during peak periods and includes other physical elements that reduce public transportation vehicle travel time and increase service reliability;

‘(B) that represents a substantial investment in a single route in a defined corridor or subarea; and

‘(C) that includes features that emulate the services provided by rail fixed guideway public transportation systems, including--

‘(i) defined stations;

‘(ii) traffic signal priority for public transportation vehicles;

‘(iii) short headway bidirectional services for a substantial part of weekdays and weekend days; and

‘(iv) any other features the Secretary may determine are necessary to produce high-quality public transportation services that emulate the services provided by rail fixed guideway public transportation systems.

‘(3) CORE CAPACITY IMPROVEMENT PROJECT- The term ‘core capacity improvement project’ means a substantial corridor-based capital investment in an existing fixed guideway system that adds capacity and functionality.

‘(4) NEW FIXED GUIDEWAY CAPITAL PROJECT- The term ‘new fixed guideway capital project’ means--

‘(A) a new fixed guideway project that is a minimum operable segment or extension to an existing fixed guideway system; or

‘(B) a bus rapid transit project that is a minimum operable segment or an extension to an existing bus rapid transit system.

‘(5) PROGRAM OF INTERRELATED PROJECTS- The term ‘program of interrelated projects’ means the simultaneous development of--

‘(A) 2 or more new fixed guideway capital projects or core capacity improvement projects; or

‘(B) 1 or more new fixed guideway capital projects and 1 or more core capacity improvement projects.

‘(b) General Authority- The Secretary may make grants under this section to State and local governmental authorities to assist in financing--

‘(1) new fixed guideway capital projects, including the acquisition of real property, the initial acquisition of rolling stock for the system, the acquisition of rights-of-way, and relocation, for fixed guideway corridor development for projects in the advanced stages of project development or engineering; and

‘(2) core capacity improvement projects, including the acquisition of real property, the acquisition of rights-of-way, double tracking, signalization improvements, electrification, expanding system platforms, acquisition of rolling stock, construction of infill stations, and such other capacity improvement projects as the Secretary determines are appropriate.

‘(c) Grant Requirements-

‘(1) IN GENERAL- The Secretary may make a grant under this section for new fixed guideway capital projects or core capacity improvement projects, if the Secretary determines that--

‘(A) the project is part of an approved transportation plan required under sections 5303 and 5304; and

‘(B) the applicant has, or will have--

‘(i) the legal, financial, and technical capacity to carry out the project, including the safety and security aspects of the project;

‘(ii) satisfactory continuing control over the use of the equipment or facilities; and

‘(iii) the technical and financial capacity to maintain new and existing equipment and facilities.

‘(2) CERTIFICATION- An applicant that has submitted the certifications required under subparagraphs (A), (B), (C), and (H) of section 5307(d)(1) shall be deemed to have provided sufficient information upon which the Secretary may make the determinations required under this subsection.

‘(3) TECHNICAL CAPACITY- The Secretary shall use an expedited technical capacity review process for applicants that have recently and successfully completed at least 1 new bus rapid transit project, new fixed guideway capital project, or core capacity improvement project, if--

‘(A) the applicant achieved budget, cost, and ridership outcomes for the project that are consistent with or better than projections; and

‘(B) the applicant demonstrates that the applicant continues to have the staff expertise and other resources necessary to implement a new project.

‘(4) RECIPIENT REQUIREMENTS- A recipient of a grant awarded under this section shall be subject to all terms, conditions, requirements, and provisions that the Secretary determines to be necessary or appropriate for purposes of this section.

‘(d) New Fixed Guideway Grants-

‘(1) PROJECT DEVELOPMENT PHASE-

‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE- A new fixed guideway capital project shall enter into the project development phase when--

‘(i) the applicant--

‘(I) submits a letter to the Secretary describing the project and requesting entry into the project development phase; and

‘(II) initiates activities required to be carried out under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the project; and

‘(ii) the Secretary responds in writing to the applicant within 45 days whether the information provided is sufficient to enter into the project development phase, including, when necessary, a detailed description of any information deemed insufficient.

‘(B) ACTIVITIES DURING PROJECT DEVELOPMENT PHASE- Concurrent with the analysis required to be made under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), each applicant shall develop sufficient information to enable the Secretary to make findings of project justification, policies and land use patterns that promote public transportation, and local financial commitment under this subsection.

‘(C) COMPLETION OF PROJECT DEVELOPMENT ACTIVITIES REQUIRED-

‘(i) IN GENERAL- Not later than 2 years after the date on which a project enters into the project development phase, the applicant shall complete the activities required to obtain a project rating under subsection (g)(2) and submit completed documentation to the Secretary.

‘(ii) EXTENSION OF TIME- Upon the request of an applicant, the Secretary may extend the time period under clause (i), if the applicant submits to the Secretary--

‘(I) a reasonable plan for completing the activities required under this paragraph; and

‘(II) an estimated time period within which the applicant will complete such activities.

‘(2) ENGINEERING PHASE-

‘(A) IN GENERAL- A new fixed guideway capital project may advance to the engineering phase upon completion of activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a record of decision with respect to the project, a finding that the project has no significant impact, or a determination that the project is categorically excluded, only if the Secretary determines that the project--

‘(i) is selected as the locally preferred alternative at the completion of the process required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

‘(ii) is adopted into the metropolitan transportation plan required under section 5303;

‘(iii) is justified based on a comprehensive review of the project’s mobility improvements, environmental benefits, and cost-effectiveness, as measured by cost per rider;

‘(iv) is supported by policies and land use patterns that promote public transportation, including plans for future land use and rezoning, and economic development around public transportation stations; and

‘(v) is supported by an acceptable degree of local financial commitment (including evidence of stable and dependable financing sources), as required under subsection (f).

‘(B) DETERMINATION THAT PROJECT IS JUSTIFIED- In making a determination under subparagraph (A)(iii), the Secretary shall evaluate, analyze, and consider--

‘(i) the reliability of the forecasting methods used to estimate costs and utilization made by the recipient and the contractors to the recipient; and

‘(ii) population density and current public transportation ridership in the transportation corridor.

‘(e) Core Capacity Improvement Projects-

‘(1) PROJECT DEVELOPMENT PHASE-

‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE- A core capacity improvement project shall be deemed to have entered into the project development phase if--

‘(i) the applicant--

‘(I) submits a letter to the Secretary describing the project and requesting entry into the project development phase; and

‘(II) initiates activities required to be carried out under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the project; and

‘(ii) the Secretary responds in writing to the applicant within 45 days whether the information provided is sufficient to enter into the project development phase, including when necessary a detailed description of any information deemed insufficient.

‘(B) ACTIVITIES DURING PROJECT DEVELOPMENT PHASE- Concurrent with the analysis required to be made under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), each applicant shall develop sufficient information to enable the Secretary to make findings of project justification and local financial commitment under this subsection.

‘(C) COMPLETION OF PROJECT DEVELOPMENT ACTIVITIES REQUIRED-

‘(i) IN GENERAL- Not later than 2 years after the date on which a project enters into the project development phase, the applicant shall complete the activities required to obtain a project rating under subsection (g)(2) and submit completed documentation to the Secretary.

‘(ii) EXTENSION OF TIME- Upon the request of an applicant, the Secretary may extend the time period under clause (i), if the applicant submits to the Secretary--

‘(I) a reasonable plan for completing the activities required under this paragraph; and

‘(II) an estimated time period within which the applicant will complete such activities.

‘(2) ENGINEERING PHASE-

‘(A) IN GENERAL- A core capacity improvement project may advance into the engineering phase upon completion of activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a record of decision with respect to the project, a finding that the project has no significant impact, or a determination that the project is categorically excluded, only if the Secretary determines that the project--

‘(i) is selected as the locally preferred alternative at the completion of the process required under the National Environmental Policy Act of 1969;

‘(ii) is adopted into the metropolitan transportation plan required under section 5303;

‘(iii) is in a corridor that is--

‘(I) at or over capacity; or

‘(II) projected to be at or over capacity within the next 5 years;

‘(iv) is justified based on a comprehensive review of the project’s mobility improvements, environmental benefits, and cost-effectiveness, as measured by cost per rider; and

‘(v) is supported by an acceptable degree of local financial commitment (including evidence of stable and dependable financing sources), as required under subsection (f).

‘(B) DETERMINATION THAT PROJECT IS JUSTIFIED- In making a determination under subparagraph (A)(iv), the Secretary shall evaluate, analyze, and consider--

‘(i) the reliability of the forecasting methods used to estimate costs and utilization made by the recipient and the contractors to the recipient;

‘(ii) whether the project will adequately address the capacity concerns in a corridor;

‘(iii) whether the project will improve interconnectivity among existing systems; and

‘(iv) whether the project will improve environmental outcomes.

‘(f) Financing Sources-

‘(1) REQUIREMENTS- In determining whether a project is supported by an acceptable degree of local financial commitment and shows evidence of stable and dependable financing sources for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the Secretary shall require that--

‘(A) the proposed project plan provides for the availability of contingency amounts that the Secretary determines to be reasonable to cover unanticipated cost increases or funding shortfalls;

‘(B) each proposed local source of capital and operating financing is stable, reliable, and available within the proposed project timetable; and

‘(C) local resources are available to recapitalize, maintain, and operate the overall existing and proposed public transportation system, including essential feeder bus and other services necessary to achieve the projected ridership levels without requiring a reduction in existing public transportation services or level of service to operate the project.

‘(2) CONSIDERATIONS- In assessing the stability, reliability, and availability of proposed sources of local financing for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the Secretary shall consider--

‘(A) the reliability of the forecasting methods used to estimate costs and revenues made by the recipient and the contractors to the recipient;

‘(B) existing grant commitments;

‘(C) the degree to which financing sources are dedicated to the proposed purposes;

‘(D) any debt obligation that exists, or is proposed by the recipient, for the proposed project or other public transportation purpose; and

‘(E) the extent to which the project has a local financial commitment that exceeds the required non-Government share of the cost of the project.

‘(g) Project Advancement and Ratings-

‘(1) PROJECT ADVANCEMENT- A new fixed guideway capital project or core capacity improvement project proposed to be carried out using a grant under this section may not advance from the project development phase to the engineering phase, or from the engineering phase to the construction phase, unless the Secretary determines that--

‘(A) the project meets the applicable requirements under this section; and

‘(B) there is a reasonable likelihood that the project will continue to meet the requirements under this section.

‘(2) RATINGS-

‘(A) OVERALL RATING- In making a determination under paragraph (1), the Secretary shall evaluate and rate a project as a whole on a 5-point scale (high, medium-high, medium, medium-low, or low) based on--

‘(i) in the case of a new fixed guideway capital project, the project justification criteria under subsection (d)(2)(A)(iii), the policies and land use patterns that support public transportation, and the degree of local financial commitment; and

‘(ii) in the case of a core capacity improvement project, the capacity needs of the corridor, the project justification criteria under subsection (e)(2)(A)(iv), and the degree of local financial commitment.

‘(B) INDIVIDUAL RATINGS FOR EACH CRITERION- In rating a project under this paragraph, the Secretary shall--

‘(i) provide, in addition to the overall project rating under subparagraph (A), individual ratings for each of the criteria established under subsection (d)(2)(A)(iii) or (e)(2)(A)(iv), as applicable; and

‘(ii) give comparable, but not necessarily equal, numerical weight to each of the criteria established under subsections (d)(2)(A)(iii) or (e)(2)(A)(iv), as applicable, in calculating the overall project rating under clause (i).

‘(C) MEDIUM RATING NOT REQUIRED- The Secretary shall not require that any single project justification criterion meet or exceed a ‘medium’ rating in order to advance the project from one phase to another.

‘(3) WARRANTS- The Secretary shall, to the maximum extent practicable, develop and use special warrants for making a project justification determination under subsection (d)(2) or (e)(2), as applicable, for a project proposed to be funded using a grant under this section, if--

‘(A) the share of the cost of the project to be provided under this section does not exceed--

‘(i) $100,000,000; or

‘(ii) 50 percent of the total cost of the project;

‘(B) the applicant requests the use of the warrants;

‘(C) the applicant certifies that its existing public transportation system is in a state of good repair; and

‘(D) the applicant meets any other requirements that the Secretary considers appropriate to carry out this subsection.

‘(4) LETTERS OF INTENT AND EARLY SYSTEMS WORK AGREEMENTS- In order to expedite a project under this subsection, the Secretary shall, to the maximum extent practicable, issue letters of intent and enter into early systems work agreements upon issuance of a record of decision for projects that receive an overall project rating of medium or better.

‘(5) POLICY GUIDANCE- The Secretary shall issue policy guidance regarding the review and evaluation process and criteria--

‘(A) not later than 180 days after the date of enactment of the Federal Public Transportation Act of 2012; and

‘(B) each time the Secretary makes significant changes to the process and criteria, but not less frequently than once every 2 years.

‘(6) RULES- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue rules establishing an evaluation and rating process for--

‘(A) new fixed guideway capital projects that is based on the results of project justification, policies and land use patterns that promote public transportation, and local financial commitment, as required under this subsection; and

‘(B) core capacity improvement projects that is based on the results of the capacity needs of the corridor, project justification, and local financial commitment.

‘(7) APPLICABILITY- This subsection shall not apply to a project for which the Secretary issued a letter of intent, entered into a full funding grant agreement, or entered into a project construction agreement before the date of enactment of the Federal Public Transportation Act of 2012.

‘(h) Programs of Interrelated Projects-

‘(1) PROJECT DEVELOPMENT PHASE- A federally funded project in a program of interrelated projects shall advance through project development as provided in subsection (d) or (e), as applicable.

‘(2) ENGINEERING PHASE- A federally funded project in a program of interrelated projects may advance into the engineering phase upon completion of activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a record of decision with respect to the project, a finding that the project has no significant impact, or a determination that the project is categorically excluded, only if the Secretary determines that--

‘(A) the project is selected as the locally preferred alternative at the completion of the process required under the National Environmental Policy Act of 1969;

‘(B) the project is adopted into the metropolitan transportation plan required under section 5303;

‘(C) the program of interrelated projects involves projects that have a logical connectivity to one another;

‘(D) the program of interrelated projects, when evaluated as a whole, meets the requirements of subsection (d)(2) or (e)(2), as applicable;

‘(E) the program of interrelated projects is supported by a program implementation plan demonstrating that construction will begin on each of the projects in the program of interrelated projects within a reasonable time frame; and

‘(F) the program of interrelated projects is supported by an acceptable degree of local financial commitment, as described in subsection (f).

‘(3) PROJECT ADVANCEMENT AND RATINGS-

‘(A) PROJECT ADVANCEMENT- A project receiving a grant under this section that is part of a program of interrelated projects may not advance from the project development phase to the engineering phase, or from the engineering phase to the construction phase, unless the Secretary determines that the program of interrelated projects meets the applicable requirements of this section and there is a reasonable likelihood that the program will continue to meet such requirements.

‘(B) RATINGS-

‘(i) OVERALL RATING- In making a determination under subparagraph (A), the Secretary shall evaluate and rate a program of interrelated projects on a 5-point scale (high, medium-high, medium, medium-low, or low) based on the criteria described in paragraph (2).

‘(ii) INDIVIDUAL RATING FOR EACH CRITERION- In rating a program of interrelated projects, the Secretary shall provide, in addition to the overall program rating, individual ratings for each of the criteria described in paragraph (2) and shall give comparable, but not necessarily equal, numerical weight to each such criterion in calculating the overall program rating.

‘(iii) MEDIUM RATING NOT REQUIRED- The Secretary shall not require that any single criterion described in paragraph (2) meet or exceed a ‘medium’ rating in order to advance the program of interrelated projects from one phase to another.

‘(4) ANNUAL REVIEW-

‘(A) REVIEW REQUIRED- The Secretary shall annually review the program implementation plan required under paragraph (2)(E) to determine whether the program of interrelated projects is adhering to its schedule.

‘(B) EXTENSION OF TIME- If a program of interrelated projects is not adhering to its schedule, the Secretary may, upon the request of the applicant, grant an extension of time if the applicant submits a reasonable plan that includes--

‘(i) evidence of continued adequate funding; and

‘(ii) an estimated time frame for completing the program of interrelated projects.

‘(C) SATISFACTORY PROGRESS REQUIRED- If the Secretary determines that a program of interrelated projects is not making satisfactory progress, no Federal funds shall be provided for a project within the program of interrelated projects.

‘(5) FAILURE TO CARRY OUT PROGRAM OF INTERRELATED PROJECTS-

‘(A) REPAYMENT REQUIRED- If an applicant does not carry out the program of interrelated projects within a reasonable time, for reasons within the control of the applicant, the applicant shall repay all Federal funds provided for the program, and any reasonable interest and penalty charges that the Secretary may establish.

‘(B) CREDITING OF FUNDS RECEIVED- Any funds received by the Government under this paragraph, other than interest and penalty charges, shall be credited to the appropriation account from which the funds were originally derived.

‘(6) NON-FEDERAL FUNDS- Any non-Federal funds committed to a project in a program of interrelated projects may be used to meet a non-Government share requirement for any other project in the program of interrelated projects, if the Government share of the cost of each project within the program of interrelated projects does not exceed 80 percent.

‘(7) PRIORITY- In making grants under this section, the Secretary may give priority to programs of interrelated projects for which the non-Government share of the cost of the projects included in the programs of interrelated projects exceeds the non-Government share required under subsection (k).

‘(8) NON-GOVERNMENT PROJECTS- Including a project not financed by the Government in a program of interrelated projects does not impose Government requirements that would not otherwise apply to the project.

‘(i) Previously Issued Letter of Intent or Full Funding Grant Agreement- Subsections (d) and (e) shall not apply to projects for which the Secretary has issued a letter of intent, entered into a full funding grant agreement, or entered into a project construction grant agreement before the date of enactment of the Federal Public Transportation Act of 2012.

‘(j) Letters of Intent, Full Funding Grant Agreements, and Early Systems Work Agreements-

‘(1) LETTERS OF INTENT-

‘(A) AMOUNTS INTENDED TO BE OBLIGATED- The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for a new fixed guideway capital project or core capacity improvement project, an amount from future available budget authority specified in law that is not more than the amount stipulated as the financial participation of the Secretary in the project. When a letter is issued for a capital project under this section, the amount shall be sufficient to complete at least an operable segment.

‘(B) TREATMENT- The issuance of a letter under subparagraph (A) is deemed not to be an obligation under sections 1108(c), 1501, and 1502(a) of title 31, United States Code, or an administrative commitment.

‘(2) FULL FUNDING GRANT AGREEMENTS-

‘(A) IN GENERAL- A new fixed guideway capital project or core capacity improvement project shall be carried out through a full funding grant agreement.

‘(B) CRITERIA- The Secretary shall enter into a full funding grant agreement, based on the evaluations and ratings required under subsection (d), (e), or (h), as applicable, with each grantee receiving assistance for a new fixed guideway capital project or core capacity improvement project that has been rated as high, medium-high, or medium, in accordance with subsection (g)(2)(A) or (h)(3)(B), as applicable.

‘(C) TERMS- A full funding grant agreement shall--

‘(i) establish the terms of participation by the Government in a new fixed guideway capital project or core capacity improvement project;

‘(ii) establish the maximum amount of Federal financial assistance for the project;

‘(iii) include the period of time for completing the project, even if that period extends beyond the period of an authorization; and

‘(iv) make timely and efficient management of the project easier according to the law of the United States.

‘(D) SPECIAL FINANCIAL RULES-

‘(i) IN GENERAL- A full funding grant agreement under this paragraph obligates an amount of available budget authority specified in law and may include a commitment, contingent on amounts to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority specified in law.

‘(ii) STATEMENT OF CONTINGENT COMMITMENT- The agreement shall state that the contingent commitment is not an obligation of the Government.

‘(iii) INTEREST AND OTHER FINANCING COSTS- Interest and other financing costs of efficiently carrying out a part of the project within a reasonable time are a cost of carrying out the project under a full funding grant agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms.

‘(iv) COMPLETION OF OPERABLE SEGMENT- The amount stipulated in an agreement under this paragraph for a new fixed guideway capital project shall be sufficient to complete at least an operable segment.

‘(E) BEFORE AND AFTER STUDY-

‘(i) IN GENERAL- A full funding grant agreement under this paragraph shall require the applicant to conduct a study that--

‘(I) describes and analyzes the impacts of the new fixed guideway capital project or core capacity improvement project on public transportation services and public transportation ridership;

‘(II) evaluates the consistency of predicted and actual project characteristics and performance; and

‘(III) identifies reasons for differences between predicted and actual outcomes.

‘(ii) INFORMATION COLLECTION AND ANALYSIS PLAN-

‘(I) SUBMISSION OF PLAN- Applicants seeking a full funding grant agreement under this paragraph shall submit a complete plan for the collection and analysis of information to identify the impacts of the new fixed guideway capital project or core capacity improvement project and the accuracy of the forecasts prepared during the development of the project. Preparation of this plan shall be included in the full funding grant agreement as an eligible activity.

‘(II) CONTENTS OF PLAN- The plan submitted under subclause (I) shall provide for--

‘(aa) collection of data on the current public transportation system regarding public transportation service levels and ridership patterns, including origins and destinations, access modes, trip purposes, and rider characteristics;

‘(bb) documentation of the predicted scope, service levels, capital costs, operating costs, and ridership of the project;

‘(cc) collection of data on the public transportation system 2 years after the opening of a new fixed guideway capital project or core capacity improvement project, including analogous information on public transportation service levels and ridership patterns and information on the as-built scope, capital, and financing costs of the project; and

‘(dd) analysis of the consistency of predicted project characteristics with actual outcomes.

‘(F) COLLECTION OF DATA ON CURRENT SYSTEM- To be eligible for a full funding grant agreement under this paragraph, recipients shall have collected data on the current system, according to the plan required under subparagraph (E)(ii), before the beginning of construction of the proposed new fixed guideway capital project or core capacity improvement project. Collection of this data shall be included in the full funding grant agreement as an eligible activity.

‘(3) EARLY SYSTEMS WORK AGREEMENTS-

‘(A) CONDITIONS- The Secretary may enter into an early systems work agreement with an applicant if a record of decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been issued on the project and the Secretary finds there is reason to believe--

‘(i) a full funding grant agreement for the project will be made; and

‘(ii) the terms of the work agreement will promote ultimate completion of the project more rapidly and at less cost.

‘(B) CONTENTS-

‘(i) IN GENERAL- An early systems work agreement under this paragraph obligates budget authority available under this chapter and title 23 and shall provide for reimbursement of preliminary costs of carrying out the project, including land acquisition, timely procurement of system elements for which specifications are decided, and other activities the Secretary decides are appropriate to make efficient, long-term project management easier.

‘(ii) CONTINGENT COMMITMENT- An early systems work agreement may include a commitment, contingent on amounts to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority specified in law.

‘(iii) PERIOD COVERED- An early systems work agreement under this paragraph shall cover the period of time the Secretary considers appropriate. The period may extend beyond the period of current authorization.

‘(iv) INTEREST AND OTHER FINANCING COSTS- Interest and other financing costs of efficiently carrying out the early systems work agreement within a reasonable time are a cost of carrying out the agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms.

‘(v) FAILURE TO CARRY OUT PROJECT- If an applicant does not carry out the project for reasons within the control of the applicant, the applicant shall repay all Federal grant funds awarded for the project from all Federal funding sources, for all project activities, facilities, and equipment, plus reasonable interest and penalty charges allowable by law or established by the Secretary in the early systems work agreement.

‘(vi) CREDITING OF FUNDS RECEIVED- Any funds received by the Government under this paragraph, other than interest and penalty charges, shall be credited to the appropriation account from which the funds were originally derived.

‘(4) LIMITATION ON AMOUNTS-

‘(A) IN GENERAL- The Secretary may enter into full funding grant agreements under this subsection for new fixed guideway capital projects and core capacity improvement projects that contain contingent commitments to incur obligations in such amounts as the Secretary determines are appropriate.

‘(B) APPROPRIATION REQUIRED- An obligation may be made under this subsection only when amounts are appropriated for the obligation.

‘(5) NOTIFICATION TO CONGRESS- At least 30 days before issuing a letter of intent, entering into a full funding grant agreement, or entering into an early systems work agreement under this section, the Secretary shall notify, in writing, the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of Representatives of the proposed letter or agreement. The Secretary shall include with the notification a copy of the proposed letter or agreement as well as the evaluations and ratings for the project.

‘(k) Government Share of Net Capital Project Cost-

‘(1) IN GENERAL- Based on engineering studies, studies of economic feasibility, and information on the expected use of equipment or facilities, the Secretary shall estimate the net capital project cost. A grant for the project shall not exceed 80 percent of the net capital project cost.

‘(2) ADJUSTMENT FOR COMPLETION UNDER BUDGET- The Secretary may adjust the final net capital project cost of a new fixed guideway capital project or core capacity improvement project evaluated under subsection (d), (e), or (h) to include the cost of eligible activities not included in the originally defined project if the Secretary determines that the originally defined project has been completed at a cost that is significantly below the original estimate.

‘(3) MAXIMUM GOVERNMENT SHARE- The Secretary may provide a higher grant percentage than requested by the grant recipient if--

‘(A) the Secretary determines that the net capital project cost of the project is not more than 10 percent higher than the net capital project cost estimated at the time the project was approved for advancement into the engineering phase; and

‘(B) the ridership estimated for the project is not less than 90 percent of the ridership estimated for the project at the time the project was approved for advancement into the engineering phase.

‘(4) REMAINDER OF NET CAPITAL PROJECT COST- The remainder of the net capital project cost shall be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital.

‘(5) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in this section shall be construed as authorizing the Secretary to require a non-Federal financial commitment for a project that is more than 20 percent of the net capital project cost.

‘(6) SPECIAL RULE FOR ROLLING STOCK COSTS- In addition to amounts allowed pursuant to paragraph (1), a planned extension to a fixed guideway system may include the cost of rolling stock previously purchased if the applicant satisfies the Secretary that only amounts other than amounts provided by the Government were used and that the purchase was made for use on the extension. A refund or reduction of the remainder may be made only if a refund of a proportional amount of the grant of the Government is made at the same time.

‘(7) LIMITATION ON APPLICABILITY- This subsection shall not apply to projects for which the Secretary entered into a full funding grant agreement before the date of enactment of the Federal Public Transportation Act of 2012.

‘(l) Undertaking Projects in Advance-

‘(1) IN GENERAL- The Secretary may pay the Government share of the net capital project cost to a State or local governmental authority that carries out any part of a project described in this section without the aid of amounts of the Government and according to all applicable procedures and requirements if--

‘(A) the State or local governmental authority applies for the payment;

‘(B) the Secretary approves the payment; and

‘(C) before the State or local governmental authority carries out the part of the project, the Secretary approves the plans and specifications for the part in the same way as other projects under this section.

‘(2) FINANCING COSTS-

‘(A) IN GENERAL- The cost of carrying out part of a project includes the amount of interest earned and payable on bonds issued by the State or local governmental authority to the extent proceeds of the bonds are expended in carrying out the part.

‘(B) LIMITATION ON AMOUNT OF INTEREST- The amount of interest under this paragraph may not be more than the most favorable interest terms reasonably available for the project at the time of borrowing.

‘(C) CERTIFICATION- The applicant shall certify, in a manner satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms.

‘(m) Availability of Amounts-

‘(1) IN GENERAL- An amount made available or appropriated for a new fixed guideway capital project or core capacity improvement project shall remain available to that project for 5 fiscal years, including the fiscal year in which the amount is made available or appropriated. Any amounts that are unobligated to the project at the end of the 5-fiscal-year period may be used by the Secretary for any purpose under this section.

‘(2) USE OF DEOBLIGATED AMOUNTS- An amount available under this section that is deobligated may be used for any purpose under this section.

‘(n) Reports on New Fixed Guideway and Core Capacity Improvement Projects-

‘(1) ANNUAL REPORT ON FUNDING RECOMMENDATIONS- Not later than the first Monday in February of each year, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of Representatives a report that includes--

‘(A) a proposal of allocations of amounts to be available to finance grants for projects under this section among applicants for these amounts;

‘(B) evaluations and ratings, as required under subsections (d), (e), and (h), for each such project that is in project development, engineering, or has received a full funding grant agreement; and

‘(C) recommendations of such projects for funding based on the evaluations and ratings and on existing commitments and anticipated funding levels for the next 3 fiscal years based on information currently available to the Secretary.

‘(2) REPORTS ON BEFORE AND AFTER STUDIES- Not later than the first Monday in August of each year, the Secretary shall submit to the committees described in paragraph (1) a report containing a summary of the results of any studies conducted under subsection (j)(2)(E).

‘(3) ANNUAL GAO REVIEW- The Comptroller General of the United States shall--

‘(A) conduct an annual review of--

‘(i) the processes and procedures for evaluating, rating, and recommending new fixed guideway capital projects and core capacity improvement projects; and

‘(ii) the Secretary’s implementation of such processes and procedures; and

‘(B) report to Congress on the results of such review by May 31 of each year.’.

(b) Pilot Program for Expedited Project Delivery-

(1) DEFINITIONS- In this subsection the following definitions shall apply:

(A) ELIGIBLE PROJECT- The term ‘eligible project’ means a new fixed guideway capital project or a core capacity improvement project, as those terms are defined in section 5309 of title 49, United States Code, as amended by this section, that has not entered into a full funding grant agreement with the Federal Transit Administration before the date of enactment of the Federal Public Transportation Act of 2012.

(B) PROGRAM- The term ‘program’ means the pilot program for expedited project delivery established under this subsection.

(C) RECIPIENT- The term ‘recipient’ means a recipient of funding under chapter 53 of title 49, United States Code.

(D) SECRETARY- The term ‘Secretary’ means the Secretary of Transportation.

(2) ESTABLISHMENT- The Secretary shall establish and implement a pilot program to demonstrate whether innovative project development and delivery methods or innovative financing arrangements can expedite project delivery for certain meritorious new fixed guideway capital projects and core capacity improvement projects.

(3) LIMITATION ON NUMBER OF PROJECTS- The Secretary shall select 3 eligible projects to participate in the program, of which--

(A) at least 1 shall be an eligible project requesting more than $100,000,000 in Federal financial assistance under section 5309 of title 49, United States Code; and

(B) at least 1 shall be an eligible project requesting less than $100,000,000 in Federal financial assistance under section 5309 of title 49, United States Code.

(4) GOVERNMENT SHARE- The Government share of the total cost of an eligible project that participates in the program may not exceed 50 percent.

(5) ELIGIBILITY- A recipient that desires to participate in the program shall submit to the Secretary an application that contains, at a minimum--

(A) identification of an eligible project;

(B) a schedule and finance plan for the construction and operation of the eligible project;

(C) an analysis of the efficiencies of the proposed project development and delivery methods or innovative financing arrangement for the eligible project; and

(D) a certification that the recipient’s existing public transportation system is in a state of good repair.

(6) SELECTION CRITERIA- The Secretary may award a full funding grant agreement under this subsection if the Secretary determines that--

(A) the recipient has completed planning and the activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

(B) the recipient has the necessary legal, financial, and technical capacity to carry out the eligible project.

(7) BEFORE AND AFTER STUDY AND REPORT-

(A) STUDY REQUIRED- A full funding grant agreement under this paragraph shall require a recipient to conduct a study that--

(i) describes and analyzes the impacts of the eligible project on public transportation services and public transportation ridership;

(ii) describes and analyzes the consistency of predicted and actual benefits and costs of the innovative project development and delivery methods or innovative financing for the eligible project; and

(iii) identifies reasons for any differences between predicted and actual outcomes for the eligible project.

(B) SUBMISSION OF REPORT- Not later than 9 months after an eligible project selected to participate in the program begins revenue operations, the recipient shall submit to the Secretary a report on the results of the study under subparagraph (A).

SEC. 20011. FORMULA GRANTS FOR THE ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES.

Section 5310 of title 49, United States Code, is amended to read as follows:

‘Sec. 5310. Formula grants for the enhanced mobility of seniors and individuals with disabilities

‘(a) Definitions- In this section, the following definitions shall apply:

‘(1) RECIPIENT- The term ‘recipient’ means a designated recipient or a State that receives a grant under this section directly.

‘(2) SUBRECIPIENT- The term ‘subrecipient’ means a State or local governmental authority, nonprofit organization, or operator of public transportation that receives a grant under this section indirectly through a recipient.

‘(b) General Authority-

‘(1) GRANTS- The Secretary may make grants under this section to recipients for--

‘(A) public transportation capital projects planned, designed, and carried out to meet the special needs of seniors and individuals with disabilities when public transportation is insufficient, inappropriate, or unavailable;

‘(B) public transportation projects that exceed the requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);

‘(C) public transportation projects that improve access to fixed route service and decrease reliance by individuals with disabilities on complementary paratransit; and

‘(D) alternatives to public transportation that assist seniors and individuals with disabilities with transportation.

‘(2) LIMITATIONS FOR CAPITAL PROJECTS-

‘(A) AMOUNT AVAILABLE- The amount available for capital projects under paragraph (1)(A) shall be not less than 55 percent of the funds apportioned to the recipient under this section.

‘(B) ALLOCATION TO SUBRECIPIENTS- A recipient of a grant under paragraph (1)(A) may allocate the amounts provided under the grant to--

‘(i) a nonprofit organization; or

‘(ii) a State or local governmental authority that--

‘(I) is approved by a State to coordinate services for seniors and individuals with disabilities; or

‘(II) certifies that there are no nonprofit organizations readily available in the area to provide the services described in paragraph (1)(A).

‘(3) ADMINISTRATIVE EXPENSES-

‘(A) IN GENERAL- A recipient may use not more than 10 percent of the amounts apportioned to the recipient under this section to administer, plan, and provide technical assistance for a project funded under this section.

‘(B) GOVERNMENT SHARE OF COSTS- The Government share of the costs of administering a program carried out using funds under this section shall be 100 percent.

‘(4) ELIGIBLE CAPITAL EXPENSES- The acquisition of public transportation services is an eligible capital expense under this section.

‘(5) COORDINATION-

‘(A) DEPARTMENT OF TRANSPORTATION- To the maximum extent feasible, the Secretary shall coordinate activities under this section with related activities under other Federal departments and agencies.

‘(B) OTHER FEDERAL AGENCIES AND NONPROFIT ORGANIZATIONS- A State or local governmental authority or nonprofit organization that receives assistance from Government sources (other than the Department of Transportation) for nonemergency transportation services shall--

‘(i) participate and coordinate with recipients of assistance under this chapter in the design and delivery of transportation services; and

‘(ii) participate in the planning for the transportation services described in clause (i).

‘(6) PROGRAM OF PROJECTS-

‘(A) IN GENERAL- Amounts made available to carry out this section may be used for transportation projects to assist in providing transportation services for seniors and individuals with disabilities, if such transportation projects are included in a program of projects.

‘(B) SUBMISSION- A recipient shall annually submit a program of projects to the Secretary.

‘(C) ASSURANCE- The program of projects submitted under subparagraph (B) shall contain an assurance that the program provides for the maximum feasible coordination of transportation services assisted under this section with transportation services assisted by other Government sources.

‘(7) MEAL DELIVERY FOR HOMEBOUND INDIVIDUALS- A public transportation service provider that receives assistance under this section or section 5311(c) may coordinate and assist in regularly providing meal delivery service for homebound individuals, if the delivery service does not conflict with providing public transportation service or reduce service to public transportation passengers.

‘(c) Apportionment and Transfers-

‘(1) FORMULA- The Secretary shall apportion amounts made available to carry out this section as follows:

‘(A) LARGE URBANIZED AREAS- Sixty percent of the funds shall be apportioned among designated recipients for urbanized areas with a population of 200,000 or more individuals, as determined by the Bureau of the Census, in the ratio that--

‘(i) the number of seniors and individuals with disabilities in each such urbanized area; bears to

‘(ii) the number of seniors and individuals with disabilities in all such urbanized areas.

‘(B) SMALL URBANIZED AREAS- Twenty percent of the funds shall be apportioned among the States in the ratio that--

‘(i) the number of seniors and individuals with disabilities in urbanized areas with a population of fewer than 200,000 individuals, as determined by the Bureau of the Census, in each State; bears to

‘(ii) the number of seniors and individuals with disabilities in urbanized areas with a population of fewer than 200,000 individuals, as determined by the Bureau of the Census, in all States.

‘(C) OTHER THAN URBANIZED AREAS- Twenty percent of the funds shall be apportioned among the States in the ratio that--

‘(i) the number of seniors and individuals with disabilities in other than urbanized areas in each State; bears to

‘(ii) the number of seniors and individuals with disabilities in other than urbanized areas in all States.

‘(2) AREAS SERVED BY PROJECTS-

‘(A) IN GENERAL- Except as provided in subparagraph (B)--

‘(i) funds apportioned under paragraph (1)(A) shall be used for projects serving urbanized areas with a population of 200,000 or more individuals, as determined by the Bureau of the Census;

‘(ii) funds apportioned under paragraph (1)(B) shall be used for projects serving urbanized areas with a population of fewer than 200,000 individuals, as determined by the Bureau of the Census; and

‘(iii) funds apportioned under paragraph (1)(C) shall be used for projects serving other than urbanized areas.

‘(B) EXCEPTIONS- A State may use funds apportioned to the State under subparagraph (B) or (C) of paragraph (1)--

‘(i) for a project serving an area other than an area specified in subparagraph (A)(ii) or (A)(iii), as the case may be, if the Governor of the State certifies that all of the objectives of this section are being met in the area specified in subparagraph (A)(ii) or (A)(iii); or

‘(ii) for a project anywhere in the State, if the State has established a statewide program for meeting the objectives of this section.

‘(C) LIMITED TO ELIGIBLE PROJECTS- Any funds transferred pursuant to subparagraph (B) shall be made available only for eligible projects selected under this section.

‘(D) CONSULTATION- A recipient may transfer an amount under subparagraph (B) only after consulting with responsible local officials, publicly owned operators of public transportation, and nonprofit providers in the area for which the amount was originally apportioned.

‘(d) Government Share of Costs-

‘(1) CAPITAL PROJECTS- A grant for a capital project under this section shall be in an amount equal to 80 percent of the net capital costs of the project, as determined by the Secretary.

‘(2) OPERATING ASSISTANCE- A grant made under this section for operating assistance may not exceed an amount equal to 50 percent of the net operating costs of the project, as determined by the Secretary.

‘(3) REMAINDER OF NET COSTS- The remainder of the net costs of a project carried out under this section--

‘(A) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a service agreement with a State or local social service agency or a private social service organization, or new capital; and

‘(B) may be derived from amounts appropriated or otherwise made available--

‘(i) to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation; or

‘(ii) to carry out the Federal lands highways program under section 204 of title 23, United States Code.

‘(4) USE OF CERTAIN FUNDS- For purposes of paragraph (3)(B)(i), the prohibition under section 403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) on the use of grant funds for matching requirements shall not apply to Federal or State funds to be used for transportation purposes.

‘(e) Grant Requirements-

‘(1) IN GENERAL- A grant under this section shall be subject to the same requirements as a grant under section 5307, to the extent the Secretary determines appropriate.

‘(2) CERTIFICATION REQUIREMENTS-

‘(A) PROJECT SELECTION AND PLAN DEVELOPMENT- Before receiving a grant under this section, each recipient shall certify that--

‘(i) the projects selected by the recipient are included in a locally developed, coordinated public transit-human services transportation plan;

‘(ii) the plan described in clause (i) was developed and approved through a process that included participation by seniors, individuals with disabilities, representatives of public, private, and nonprofit transportation and human services providers, and other members of the public; and

‘(iii) to the maximum extent feasible, the services funded under this section will be coordinated with transportation services assisted by other Federal departments and agencies, including any transportation activities carried out by a recipient of a grant from the Department of Health and Human Services.

‘(B) ALLOCATIONS TO SUBRECIPIENTS- If a recipient allocates funds received under this section to subrecipients, the recipient shall certify that the funds are allocated on a fair and equitable basis.

‘(f) Competitive Process for Grants to Subrecipients-

‘(1) AREAWIDE SOLICITATIONS- A recipient of funds apportioned under subsection (c)(1)(A) may conduct, in cooperation with the appropriate metropolitan planning organization, an areawide solicitation for applications for grants under this section.

‘(2) STATEWIDE SOLICITATIONS- A recipient of funds apportioned under subparagraph (B) or (C) of subsection (c)(1) may conduct a statewide solicitation for applications for grants under this section.

‘(3) APPLICATION- If the recipient elects to engage in a competitive process, a recipient or subrecipient seeking to receive a grant from funds apportioned under subsection (c) shall submit to the recipient making the election an application in such form and in accordance with such requirements as the recipient making the election shall establish.

‘(g) Transfers of Facilities and Equipment- A recipient may transfer a facility or equipment acquired using a grant under this section to any other recipient eligible to receive assistance under this chapter, if--

‘(1) the recipient in possession of the facility or equipment consents to the transfer; and

‘(2) the facility or equipment will continue to be used as required under this section.

‘(h) Performance Measures-

‘(1) IN GENERAL- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue a final rule to establish performance measures for grants under this section.

‘(2) MEASURES- The performance measures established under paragraph (1) shall require the collection of quantitative and qualitative information, as available, concerning--

‘(A) modifications to the geographic coverage of transportation service, the quality of transportation service, or service times that increase the availability of transportation services for seniors and individuals with disabilities;

‘(B) ridership;

‘(C) accessibility improvements; and

‘(D) other measures, as the Secretary determines is appropriate.

‘(3) TARGETS- Not later than 3 months after the date on which the Secretary issues a final rule under paragraph (1), and each fiscal year thereafter, each recipient that receives Federal financial assistance under this section shall establish performance targets in relation to the performance measures established by the Secretary.

‘(4) REPORTS- Each recipient of Federal financial assistance under this section shall submit to the Secretary an annual report that describes--

‘(A) the progress of the recipient toward meeting the performance targets established under paragraph (3) for that fiscal year; and

‘(B) the performance targets established by the recipient for the subsequent fiscal year.’.

SEC. 20012. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

(a) In General- Section 5311 of title 49, United States Code, is amended to read as follows:

‘Sec. 5311. Formula grants for other than urbanized areas

‘(a) Definitions- As used in this section, the following definitions shall apply:

‘(1) RECIPIENT- The term ‘recipient’ means a State or Indian tribe that receives a Federal transit program grant directly from the Government.

‘(2) SUBRECIPIENT- The term ‘subrecipient’ means a State or local governmental authority, a nonprofit organization, or an operator of public transportation or intercity bus service that receives Federal transit program grant funds indirectly through a recipient.

‘(b) General Authority-

‘(1) GRANTS AUTHORIZED- Except as provided by paragraph (2), the Secretary may award grants under this section to recipients located in areas other than urbanized areas for--

‘(A) planning, provided that a grant under this section for planning activities shall be in addition to funding awarded to a State under section 5305 for planning activities that are directed specifically at the needs of other than urbanized areas in the State;

‘(B) public transportation capital projects;

‘(C) operating costs of equipment and facilities for use in public transportation; and

‘(D) the acquisition of public transportation services, including service agreements with private providers of public transportation service.

‘(2) STATE PROGRAM-

‘(A) IN GENERAL- A project eligible for a grant under this section shall be included in a State program for public transportation service projects, including agreements with private providers of public transportation service.

‘(B) SUBMISSION TO SECRETARY- Each State shall submit to the Secretary annually the program described in subparagraph (A).

‘(C) APPROVAL- The Secretary may not approve the program unless the Secretary determines that--

‘(i) the program provides a fair distribution of amounts in the State, including Indian reservations; and

‘(ii) the program provides the maximum feasible coordination of public transportation service assisted under this section with transportation service assisted by other Federal sources.

‘(3) RURAL TRANSPORTATION ASSISTANCE PROGRAM-

‘(A) IN GENERAL- The Secretary shall carry out a rural transportation assistance program in other than urbanized areas.

‘(B) GRANTS AND CONTRACTS- In carrying out this paragraph, the Secretary may use not more than 2 percent of the amount made available under section 5338(a)(2)(F) to make grants and contracts for transportation research, technical assistance, training, and related support services in other than urbanized areas.

‘(C) PROJECTS OF A NATIONAL SCOPE- Not more than 15 percent of the amounts available under subparagraph (B) may be used by the Secretary to carry out projects of a national scope, with the remaining balance provided to the States.

‘(4) DATA COLLECTION- Each recipient under this section shall submit an annual report to the Secretary containing information on capital investment, operations, and service provided with funds received under this section, including--

‘(A) total annual revenue;

‘(B) sources of revenue;

‘(C) total annual operating costs;

‘(D) total annual capital costs;

‘(E) fleet size and type, and related facilities;

‘(F) vehicle revenue miles; and

‘(G) ridership.

‘(c) Apportionments-

‘(1) PUBLIC TRANSPORTATION ON INDIAN RESERVATIONS- Of the amounts made available or appropriated for each fiscal year pursuant to section 5338(a)(2)(F) to carry out this paragraph, the following amounts shall be apportioned each fiscal year for grants to Indian tribes for any purpose eligible under this section, under such terms and conditions as may be established by the Secretary:

‘(A) $10,000,000 shall be distributed on a competitive basis by the Secretary.

‘(B) $20,000,000 shall be apportioned as formula grants, as provided in subsection (k).

‘(2) APPALACHIAN DEVELOPMENT PUBLIC TRANSPORTATION ASSISTANCE PROGRAM-

‘(A) DEFINITIONS- In this paragraph--

‘(i) the term ‘Appalachian region’ has the same meaning as in section 14102 of title 40; and

‘(ii) the term ‘eligible recipient’ means a State that participates in a program established under subtitle IV of title 40.

‘(B) IN GENERAL- The Secretary shall carry out a public transportation assistance program in the Appalachian region.

‘(C) APPORTIONMENT- Of amounts made available or appropriated for each fiscal year under section 5338(a)(2)(F) to carry out this paragraph, the Secretary shall apportion funds to eligible recipients for any purpose eligible under this section, based on the guidelines established under section 9.5(b) of the Appalachian Regional Commission Code.

‘(D) SPECIAL RULE- An eligible recipient may use amounts that cannot be used for operating expenses under this paragraph for a highway project if--

‘(i) that use is approved, in writing, by the eligible recipient after appropriate notice and an opportunity for comment and appeal are provided to affected public transportation providers; and

‘(ii) the eligible recipient, in approving the use of amounts under this subparagraph, determines that the local transit needs are being addressed.

‘(3) REMAINING AMOUNTS-

‘(A) IN GENERAL- The amounts made available or appropriated for each fiscal year pursuant to section 5338(a)(2)(F) that are not apportioned under paragraph (1) or (2) shall be apportioned in accordance with this paragraph.

‘(B) APPORTIONMENT BASED ON LAND AREA AND POPULATION IN NONURBANIZED AREAS-

‘(i) IN GENERAL- 83.15 percent of the amount described in subparagraph (A) shall be apportioned to the States in accordance with this subparagraph.

‘(ii) LAND AREA-

‘(I) IN GENERAL- Subject to subclause (II), each State shall receive an amount that is equal to 20 percent of the amount apportioned under clause (i), multiplied by the ratio of the land area in areas other than urbanized areas in that State and divided by the land area in all areas other than urbanized areas in the United States, as shown by the most recent decennial census of population.

‘(II) MAXIMUM APPORTIONMENT- No State shall receive more than 5 percent of the amount apportioned under subclause (I).

‘(iii) POPULATION- Each State shall receive an amount equal to 80 percent of the amount apportioned under clause (i), multiplied by the ratio of the population of areas other than urbanized areas in that State and divided by the population of all areas other than urbanized areas in the United States, as shown by the most recent decennial census of population.

‘(C) APPORTIONMENT BASED ON LAND AREA, VEHICLE REVENUE MILES, AND LOW-INCOME INDIVIDUALS IN NONURBANIZED AREAS-

‘(i) IN GENERAL- 16.85 percent of the amount described in subparagraph (A) shall be apportioned to the States in accordance with this subparagraph.

‘(ii) LAND AREA- Subject to clause (v), each State shall receive an amount that is equal to 29.68 percent of the amount apportioned under clause (i), multiplied by the ratio of the land area in areas other than urbanized areas in that State and divided by the land area in all areas other than urbanized areas in the United States, as shown by the most recent decennial census of population.

‘(iii) VEHICLE REVENUE MILES- Subject to clause (v), each State shall receive an amount that is equal to 29.68 percent of the amount apportioned under clause (i), multiplied by the ratio of vehicle revenue miles in areas other than urbanized areas in that State and divided by the vehicle revenue miles in all areas other than urbanized areas in the United States, as determined by national transit database reporting.

‘(iv) LOW-INCOME INDIVIDUALS- Each State shall receive an amount that is equal to 40.64 percent of the amount apportioned under clause (i), multiplied by the ratio of low-income individuals in areas other than urbanized areas in that State and divided by the number of low-income individuals in all areas other than urbanized areas in the United States, as shown by the Bureau of the Census.

‘(v) MAXIMUM APPORTIONMENT- No State shall receive--

‘(I) more than 5 percent of the amount apportioned under clause (ii); or

‘(II) more than 5 percent of the amount apportioned under clause (iii).

‘(d) Use for Local Transportation Service- A State may use an amount apportioned under this section for a project included in a program under subsection (b) of this section and eligible for assistance under this chapter if the project will provide local transportation service, as defined by the Secretary of Transportation, in an area other than an urbanized area.

‘(e) Use for Administration, Planning, and Technical Assistance- The Secretary may allow a State to use not more than 15 percent of the amount apportioned under this section to administer this section and provide technical assistance to a subrecipient, including project planning, program and management development, coordination of public transportation programs, and research the State considers appropriate to promote effective delivery of public transportation to an area other than an urbanized area.

‘(f) Intercity Bus Transportation-

‘(1) IN GENERAL- A State shall expend at least 15 percent of the amount made available in each fiscal year to carry out a program to develop and support intercity bus transportation. Eligible activities under the program include--

‘(A) planning and marketing for intercity bus transportation;

‘(B) capital grants for intercity bus shelters;

‘(C) joint-use stops and depots;

‘(D) operating grants through purchase-of-service agreements, user-side subsidies, and demonstration projects; and

‘(E) coordinating rural connections between small public transportation operations and intercity bus carriers.

‘(2) CERTIFICATION- A State does not have to comply with paragraph (1) of this subsection in a fiscal year in which the Governor of the State certifies to the Secretary, after consultation with affected intercity bus service providers, that the intercity bus service needs of the State are being met adequately.

‘(g) Access to Jobs Projects-

‘(1) IN GENERAL- Amounts made available under section 5338(a)(2)(F) may be used to carry out a program to develop and maintain job access projects. Eligible projects may include--

‘(A) projects relating to the development and maintenance of public transportation services designed to transport eligible low-income individuals to and from jobs and activities related to their employment, including--

‘(i) public transportation projects to finance planning, capital, and operating costs of providing access to jobs under this chapter;

‘(ii) promoting public transportation by low-income workers, including the use of public transportation by workers with nontraditional work schedules;

‘(iii) promoting the use of transit vouchers for welfare recipients and eligible low-income individuals; and

‘(iv) promoting the use of employer-provided transportation, including the transit pass benefit program under section 132 of the Internal Revenue Code of 1986; and

‘(B) transportation projects designed to support the use of public transportation including--

‘(i) enhancements to existing public transportation service for workers with non-traditional hours or reverse commutes;

‘(ii) guaranteed ride home programs;

‘(iii) bicycle storage facilities; and

‘(iv) projects that otherwise facilitate the provision of public transportation services to employment opportunities.

‘(2) PROJECT SELECTION AND PLAN DEVELOPMENT- Each grant recipient under this subsection shall certify that--

‘(A) the projects selected were included in a locally developed, coordinated public transit-human services transportation plan;

‘(B) the plan was developed and approved through a process that included participation by low-income individuals, representatives of public, private, and nonprofit transportation and human services providers, and the public;

‘(C) to the maximum extent feasible, services funded under this subsection are coordinated with transportation services funded by other Federal departments and agencies; and

‘(D) allocations of the grant to subrecipients, if any, are distributed on a fair and equitable basis.

‘(3) COMPETITIVE PROCESS FOR GRANTS TO SUBRECIPIENTS-

‘(A) STATEWIDE SOLICITATIONS- A State may conduct a statewide solicitation for applications for grants to recipients and subrecipients under this subsection.

‘(B) APPLICATION- If the State elects to engage in a competitive process, recipients and subrecipients seeking to receive a grant from apportioned funds shall submit to the State an application in the form and in accordance with such requirements as the State shall establish.

‘(h) Government Share of Costs-

‘(1) CAPITAL PROJECTS-

‘(A) IN GENERAL- Except as provided by subparagraph (B), a grant awarded under this section for a capital project or project administrative expenses shall be for 80 percent of the net costs of the project, as determined by the Secretary.

‘(B) EXCEPTION- A State described in section 120(b) of title 23 shall receive a Government share of the net costs in accordance with the formula under that section.

‘(2) OPERATING ASSISTANCE-

‘(A) IN GENERAL- Except as provided by subparagraph (B), a grant made under this section for operating assistance may not exceed 50 percent of the net operating costs of the project, as determined by the Secretary.

‘(B) EXCEPTION- A State described in section 120(b) of title 23 shall receive a Government share of the net operating costs equal to 62.5 percent of the Government share provided for under paragraph (1)(B).

‘(3) REMAINDER- The remainder of net project costs--

‘(A) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a service agreement with a State or local social service agency or a private social service organization, or new capital;

‘(B) may be derived from amounts appropriated or otherwise made available to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation; and

‘(C) notwithstanding subparagraph (B), may be derived from amounts made available to carry out the Federal lands highway program established by section 204 of title 23.

‘(4) USE OF CERTAIN FUNDS- For purposes of paragraph (3)(B), the prohibitions on the use of funds for matching requirements under section 403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or State funds to be used for transportation purposes.

‘(5) LIMITATION ON OPERATING ASSISTANCE- A State carrying out a program of operating assistance under this section may not limit the level or extent of use of the Government grant for the payment of operating expenses.

‘(i) Transfer of Facilities and Equipment- With the consent of the recipient currently having a facility or equipment acquired with assistance under this section, a State may transfer the facility or equipment to any recipient eligible to receive assistance under this chapter if the facility or equipment will continue to be used as required under this section.

‘(j) Relationship to Other Laws-

‘(1) IN GENERAL- Section 5333(b) applies to this section if the Secretary of Labor utilizes a special warranty that provides a fair and equitable arrangement to protect the interests of employees.

‘(2) RULE OF CONSTRUCTION- This subsection does not affect or discharge a responsibility of the Secretary of Transportation under a law of the United States.

‘(k) Formula Grants for Public Transportation on Indian Reservations-

‘(1) APPORTIONMENT-

‘(A) IN GENERAL- Of the amounts described in subsection (c)(1)(B)--

‘(i) 50 percent of the total amount shall be apportioned so that each Indian tribe providing public transportation service shall receive an amount equal to the total amount apportioned under this clause multiplied by the ratio of the number of vehicle revenue miles provided by an Indian tribe divided by the total number of vehicle revenue miles provided by all Indian tribes, as reported to the Secretary;

‘(ii) 25 percent of the total amount shall be apportioned equally among each Indian tribe providing at least 200,000 vehicle revenue miles of public transportation service annually, as reported to the Secretary; and

‘(iii) 25 percent of the total amount shall be apportioned among each Indian tribe providing public transportation on tribal lands on which more than 1,000 low-income individuals reside (as determined by the Bureau of the Census) so that each Indian tribe shall receive an amount equal to the total amount apportioned under this clause multiplied by the ratio of the number of low-income individuals residing on an Indian tribe’s lands divided by the total number of low-income individuals on tribal lands on which more than 1,000 low-income individuals reside.

‘(B) LIMITATION- No recipient shall receive more than $300,000 of the amounts apportioned under subparagraph (A)(iii) in a fiscal year.

‘(C) REMAINING AMOUNTS- Of the amounts made available under subparagraph (A)(iii), any amounts not apportioned under that subparagraph shall be allocated among Indian tribes receiving less than $300,000 in a fiscal year according to the formula specified in that clause.

‘(D) LOW-INCOME INDIVIDUALS- For purposes of subparagraph (A)(iii), the term ‘low-income individual’ means an individual whose family income is at or below 100 percent of the poverty line, as that term is defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by that section, for a family of the size involved.

‘(2) NON-TRIBAL SERVICE PROVIDERS- A recipient that is an Indian tribe may use funds apportioned under this subsection to finance public transportation services provided by a non-tribal provider of public transportation that connects residents of tribal lands with surrounding communities, improves access to employment or healthcare, or otherwise addresses the mobility needs of tribal members.’.

(b) Pilot Program for Intercity Bus Service-

(1) DEFINITIONS- In this subsection, the following definitions shall apply:

(A) ELIGIBLE PROJECT- The term ‘eligible project’ means an intercity bus project eligible under section 5311(f) of title 49, United States Code, as amended by this section, that includes both feeder service and an unsubsidized segment of the intercity bus network to which it connects.

(B) FEEDER SERVICE- The term ‘feeder service’ means the provision of intercity connections to allow for the coordination of rural connections between small public transportation systems and providers of intercity bus service.

(C) INTERCITY BUS SERVICE- The term ‘intercity bus service’ means regularly scheduled bus service provided by private operators for the general public that operates with limited stops over fixed routes connecting two or more urban areas not in close proximity, that has the capacity for transporting baggage carried by passengers, and that makes meaningful connections with scheduled intercity bus service to more distant points, if such service is available.

(D) SECRETARY- The term ‘Secretary’ means the Secretary of Transportation.

(2) IN-KIND MATCH- The Secretary shall establish a pilot program under which the Secretary may allow not more than 20 States using funding provided to carry out section 5311(f) of title 49, United States Code, as amended by this section, to support intercity bus service using the capital costs of unsubsidized service provided by a private operator as in-kind match for an eligible project.

(3) STUDY- The Comptroller General of the United States shall conduct a study not later than 1 year after the date of enactment of this Act to determine the efficacy of the pilot program in improving and expanding intercity bus service and the effect of the pilot program on public transportation providers and the commuting public.

SEC. 20013. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT PROJECTS.

Section 5312 of title 49, United States Code, is amended to read as follows:

‘Sec. 5312. Research, development, demonstration, and deployment projects

‘(a) Research, Development, Demonstration, and Deployment Projects-

‘(1) IN GENERAL- The Secretary may make grants and enter into contracts, cooperative agreements, and other agreements for research, development, demonstration, and deployment projects, and evaluation of research and technology of national significance to public transportation, that the Secretary determines will improve public transportation.

‘(2) AGREEMENTS- In order to carry out paragraph (1), the Secretary may make grants to and enter into contracts, cooperative agreements, and other agreements with--

‘(A) departments, agencies, and instrumentalities of the Government;

‘(B) State and local governmental entities;

‘(C) providers of public transportation;

‘(D) private or non-profit organizations;

‘(E) institutions of higher education; and

‘(F) technical and community colleges.

‘(3) APPLICATION-

‘(A) IN GENERAL- To receive a grant, contract, cooperative agreement, or other agreement under this section, an entity described in paragraph (2) shall submit an application to the Secretary.

‘(B) FORM AND CONTENTS- An application under subparagraph (A) shall be in such form and contain such information as the Secretary may require, including--

‘(i) a statement of purpose detailing the need being addressed;

‘(ii) the short- and long-term goals of the project, including opportunities for future innovation and development, the potential for deployment, and benefits to riders and public transportation; and

‘(iii) the short- and long-term funding requirements to complete the project and any future objectives of the project.

‘(b) Research-

‘(1) IN GENERAL- The Secretary may make a grant to or enter into a contract, cooperative agreement, or other agreement under this section with an entity described in subsection (a)(2) to carry out a public transportation research project that has as its ultimate goal the development and deployment of new and innovative ideas, practices, and approaches.

‘(2) PROJECT ELIGIBILITY- A public transportation research project that receives assistance under paragraph (1) shall focus on--

‘(A) providing more effective and efficient public transportation service, including services to--

‘(i) seniors;

‘(ii) individuals with disabilities; and

‘(iii) low-income individuals;

‘(B) mobility management and improvements and travel management systems;

‘(C) data and communication system advancements;

‘(D) system capacity, including--

‘(i) train control;

‘(ii) capacity improvements; and

‘(iii) performance management;

‘(E) capital and operating efficiencies;

‘(F) planning and forecasting modeling and simulation;

‘(G) advanced vehicle design;

‘(H) advancements in vehicle technology;

‘(I) asset maintenance and repair systems advancement;

‘(J) construction and project management;

‘(K) alternative fuels;

‘(L) the environment and energy efficiency;

‘(M) safety improvements; or

‘(N) any other area that the Secretary determines is important to advance the interests of public transportation.

‘(c) Innovation and Development-

‘(1) IN GENERAL- The Secretary may make a grant to or enter into a contract, cooperative agreement, or other agreement under this section with an entity described in subsection (a)(2) to carry out a public transportation innovation and development project that seeks to improve public transportation systems nationwide in order to provide more efficient and effective delivery of public transportation services, including through technology and technological capacity improvements.

‘(2) PROJECT ELIGIBILITY- A public transportation innovation and development project that receives assistance under paragraph (1) shall focus on--

‘(A) the development of public transportation research projects that received assistance under subsection (b) that the Secretary determines were successful;

‘(B) planning and forecasting modeling and simulation;

‘(C) capital and operating efficiencies;

‘(D) advanced vehicle design;

‘(E) advancements in vehicle technology;

‘(F) the environment and energy efficiency;

‘(G) system capacity, including train control and capacity improvements; or

‘(H) any other area that the Secretary determines is important to advance the interests of public transportation.

‘(d) Demonstration, Deployment, and Evaluation-

‘(1) IN GENERAL- The Secretary may, under terms and conditions that the Secretary prescribes, make a grant to or enter into a contract, cooperative agreement, or other agreement with an entity described in paragraph (2) to promote the early deployment and demonstration of innovation in public transportation that has broad applicability.

‘(2) PARTICIPANTS- An entity described in this paragraph is--

‘(A) an entity described in subsection (a)(2); or

‘(B) a consortium of entities described in subsection (a)(2), including a provider of public transportation, that will share the costs, risks, and rewards of early deployment and demonstration of innovation.

‘(3) PROJECT ELIGIBILITY- A project that receives assistance under paragraph (1) shall seek to build on successful research, innovation, and development efforts to facilitate--

‘(A) the deployment of research and technology development resulting from private efforts or federally funded efforts; and

‘(B) the implementation of research and technology development to advance the interests of public transportation.

‘(4) EVALUATION- Not later than 2 years after the date on which a project receives assistance under paragraph (1), the Secretary shall conduct a comprehensive evaluation of the success or failure of the projects funded under this subsection and any plan for broad-based implementation of the innovation promoted by successful projects.

‘(e) Annual Report on Research- Not later than the first Monday in February of each year, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of Representatives a report that includes--

‘(1) a description of each project that received assistance under this section during the preceding fiscal year;

‘(2) an evaluation of each project described in paragraph (1), including any evaluation conducted under subsection (d)(4) for the preceding fiscal year; and

‘(3) a proposal for allocations of amounts for assistance under this section for the subsequent fiscal year.

‘(f) Government Share of Costs-

‘(1) IN GENERAL- The Government share of the cost of a project carried out under this section shall not exceed 80 percent.

‘(2) NON-GOVERNMENT SHARE- The non-Government share of the cost of a project carried out under this section may be derived from in-kind contributions.

‘(3) FINANCIAL BENEFIT- If the Secretary determines that there would be a clear and direct financial benefit to an entity under a grant, contract, cooperative agreement, or other agreement under this section, the Secretary shall establish a Government share of the costs of the project to be carried out under the grant, contract, cooperative agreement, or other agreement that is consistent with the benefit.’.

SEC. 20014. TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.

Section 5314 of title 49, United States Code, is amended to read as follows:

‘Sec. 5314. Technical assistance and standards development

‘(a) Technical Assistance and Standards Development-

‘(1) IN GENERAL- The Secretary may make grants and enter into contracts, cooperative agreements, and other agreements (including agreements with departments, agencies, and instrumentalities of the Government) to carry out activities that the Secretary determines will assist recipients of assistance under this chapter to--

‘(A) more effectively and efficiently provide public transportation service;

‘(B) administer funds received under this chapter in compliance with Federal law; and

‘(C) improve public transportation.

‘(2) ELIGIBLE ACTIVITIES- The activities carried out under paragraph (1) may include--

‘(A) technical assistance; and

‘(B) the development of standards and best practices by the public transportation industry.

‘(b) Technical Assistance Centers-

‘(1) DEFINITION- In this subsection, the term ‘eligible entity’ means a nonprofit organization, an institution of higher education, or a technical or community college.

‘(2) IN GENERAL- The Secretary may make grants to and enter into contracts, cooperative agreements, and other agreements with eligible entities to administer centers to provide technical assistance, including--

‘(A) the development of tools and guidance; and

‘(B) the dissemination of best practices.

‘(3) COMPETITIVE PROCESS- The Secretary may make grants and enter into contracts, cooperative agreements, and other agreements under paragraph (2) through a competitive process on a biennial basis for technical assistance in each of the following categories:

‘(A) Human services transportation coordination, including--

‘(i) transportation for seniors;

‘(ii) transportation for individuals with disabilities; and

‘(iii) coordination of local resources and programs to assist low-income individuals and veterans in gaining access to training and employment opportunities.

‘(B) Transit-oriented development.

‘(C) Transportation equity with regard to the impact that transportation planning, investment, and operations have on low-income and minority individuals.

‘(D) Financing mechanisms, including--

‘(i) public-private partnerships;

‘(ii) bonding; and

‘(iii) State and local capacity building.

‘(E) Any other activity that the Secretary determines is important to advance the interests of public transportation.

‘(4) EXPERTISE OF TECHNICAL ASSISTANCE CENTERS- In selecting an eligible entity to administer a center under this subsection, the Secretary shall consider--

‘(A) the demonstrated subject matter expertise of the eligible entity; and

‘(B) the capacity of the eligible entity to deliver technical assistance on a regional or nationwide basis.

‘(5) PARTNERSHIPS- An eligible entity may partner with another eligible entity to provide technical assistance under this subsection.

‘(c) Government Share of Costs-

‘(1) IN GENERAL- The Government share of the cost of an activity under this section may not exceed 80 percent.

‘(2) NON-GOVERNMENT SHARE- The non-Government share of the cost of an activity under this section may be derived from in-kind contributions.’.

SEC. 20015. BUS TESTING FACILITIES.

Section 5318 of title 49, United States Code, is amended to read as follows:

‘Sec. 5318. Bus testing facilities

‘(a) Facilities- The Secretary shall certify not more than 4 comprehensive facilities for testing new bus models for maintainability, reliability, safety, performance (including braking performance), structural integrity, fuel economy, emissions, and noise.

‘(b) Cooperative Agreement- The Secretary shall enter into a cooperative agreement with not more than 4 qualified entities to test public transportation vehicles under subsection (a).

‘(c) Fees- An entity that operates and maintains a facility certified under subsection (a) shall establish and collect reasonable fees for the testing of vehicles at the facility. The Secretary must approve the fees.

‘(d) Availability of Amounts To Pay for Testing-

‘(1) IN GENERAL- The Secretary shall enter into a cooperative agreement with an entity that operates and maintains a facility certified under subsection (a), under which 80 percent of the fee for testing a vehicle at the facility may be available from amounts apportioned to a recipient under section 5336 or from amounts appropriated to carry out this section.

‘(2) PROHIBITION- An entity that operates and maintains a facility described in subsection (a) shall not have a financial interest in the outcome of the testing carried out at the facility.

‘(e) Acquiring New Bus Models- Amounts appropriated or made available under this chapter may be obligated or expended to acquire a new bus model only if--

‘(1) a bus of that model has been tested at a facility described in subsection (a); and

‘(2) the bus tested under paragraph (1) met--

‘(A) performance standards for maintainability, reliability, performance (including braking performance), structural integrity, fuel economy, emissions, and noise, as established by the Secretary by rule; and

‘(B) the minimum safety performance standards established by the Secretary pursuant to section 5329(b).’.

SEC. 20016. PUBLIC TRANSPORTATION WORKFORCE DEVELOPMENT AND HUMAN RESOURCE PROGRAMS.

Section 5322 of title 49, United States Code, is amended to read as follows:

‘Sec. 5322. Public transportation workforce development and human resource programs

‘(a) In General- The Secretary may undertake, or make grants or enter into contracts for, activities that address human resource needs as the needs apply to public transportation activities, including activities that--

‘(1) educate and train employees;

‘(2) develop the public transportation workforce through career outreach and preparation;

‘(3) develop a curriculum for workforce development;

‘(4) conduct outreach programs to increase minority and female employment in public transportation;

‘(5) conduct research on public transportation personnel and training needs;

‘(6) provide training and assistance for minority business opportunities;

‘(7) advance training relating to maintenance of alternative energy, energy efficiency, or zero emission vehicles and facilities used in public transportation; and

‘(8) address a current or projected workforce shortage in an area that requires technical expertise.

‘(b) Funding-

‘(1) URBANIZED AREA FORMULA GRANTS- A recipient or subrecipient of funding under section 5307 shall expend not less than 0.5 percent of such funding for activities consistent with subsection (a).

‘(2) WAIVER- The Secretary may waive the requirement under paragraph (1) with respect to a recipient or subrecipient if the Secretary determines that the recipient or subrecipient--

‘(A) has an adequate workforce development program; or

‘(B) has partnered with a local educational institution in a manner that sufficiently promotes or addresses workforce development and human resource needs.

‘(c) Innovative Public Transportation Workforce Development Program-

‘(1) PROGRAM ESTABLISHED- The Secretary shall establish a competitive grant program to assist the development of innovative activities eligible for assistance under subsection (a).

‘(2) SELECTION OF RECIPIENTS- To the maximum extent feasible, the Secretary shall select recipients that--

‘(A) are geographically diverse;

‘(B) address the workforce and human resources needs of large public transportation providers;

‘(C) address the workforce and human resources needs of small public transportation providers;

‘(D) address the workforce and human resources needs of urban public transportation providers;

‘(E) address the workforce and human resources needs of rural public transportation providers;

‘(F) advance training related to maintenance of alternative energy, energy efficiency, or zero emission vehicles and facilities used in public transportation;

‘(G) target areas with high rates of unemployment; and

‘(H) address current or projected workforce shortages in areas that require technical expertise.

‘(d) Government’s Share of Costs- The Government share of the cost of a project carried out using a grant under this section shall be 50 percent.

‘(e) Report- Not later than 2 years after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report concerning the measurable outcomes and impacts of the programs funded under this section.’.

SEC. 20017. GENERAL PROVISIONS.

Section 5323 of title 49, United States Code, is amended to read as follows:

‘Sec. 5323. General provisions

‘(a) Interests in Property-

‘(1) IN GENERAL- Financial assistance provided under this chapter to a State or a local governmental authority may be used to acquire an interest in, or to buy property of, a private company engaged in public transportation, for a capital project for property acquired from a private company engaged in public transportation after July 9, 1964, or to operate a public transportation facility or equipment in competition with, or in addition to, transportation service provided by an existing public transportation company, only if--

‘(A) the Secretary determines that such financial assistance is essential to a program of projects required under sections 5303 and 5304;

‘(B) the Secretary determines that the program provides for the participation of private companies engaged in public transportation to the maximum extent feasible; and

‘(C) just compensation under State or local law will be paid to the company for its franchise or property.

‘(2) LIMITATION- A governmental authority may not use financial assistance of the United States Government to acquire land, equipment, or a facility used in public transportation from another governmental authority in the same geographic area.

‘(b) Relocation and Real Property Requirements- The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to financial assistance for capital projects under this chapter.

‘(c) Consideration of Economic, Social, and Environmental Interests-

‘(1) COOPERATION AND CONSULTATION- In carrying out the goal described in section 5301(c)(2), the Secretary shall cooperate and consult with the Secretary of the Interior and the Administrator of the Environmental Protection Agency on each project that may have a substantial impact on the environment.

‘(2) COMPLIANCE WITH NEPA- The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall apply to financial assistance for capital projects under this chapter.

‘(d) Corridor Preservation-

‘(1) IN GENERAL- The Secretary may assist a recipient in acquiring right-of-way before the completion of the environmental reviews for any project that may use the right-of-way if the acquisition is otherwise permitted under Federal law. The Secretary may establish restrictions on such an acquisition as the Secretary determines to be necessary and appropriate.

‘(2) ENVIRONMENTAL REVIEWS- Right-of-way acquired under this subsection may not be developed in anticipation of the project until all required environmental reviews for the project have been completed.

‘(e) Condition on Charter Bus Transportation Service-

‘(1) AGREEMENTS- Financial assistance under this chapter may be used to buy or operate a bus only if the applicant, governmental authority, or publicly owned operator that receives the assistance agrees that, except as provided in the agreement, the governmental authority or an operator of public transportation for the governmental authority will not provide charter bus transportation service outside the urban area in which it provides regularly scheduled public transportation service. An agreement shall provide for a fair arrangement the Secretary of Transportation considers appropriate to ensure that the assistance will not enable a governmental authority or an operator for a governmental authority to foreclose a private operator from providing intercity charter bus service if the private operator can provide the service.

‘(2) VIOLATIONS-

‘(A) INVESTIGATIONS- On receiving a complaint about a violation of the agreement required under paragraph (1), the Secretary shall investigate and decide whether a violation has occurred.

‘(B) ENFORCEMENT OF AGREEMENTS- If the Secretary decides that a violation has occurred, the Secretary shall correct the violation under terms of the agreement.

‘(C) ADDITIONAL REMEDIES- In addition to any remedy specified in the agreement, the Secretary shall bar a recipient or an operator from receiving Federal transit assistance in an amount the Secretary considers appropriate if the Secretary finds a pattern of violations of the agreement.

‘(f) Bond Proceeds Eligible for Local Share-

‘(1) USE AS LOCAL MATCHING FUNDS- Notwithstanding any other provision of law, a recipient of assistance under section 5307, 5309, or 5337 may use the proceeds from the issuance of revenue bonds as part of the local matching funds for a capital project.

‘(2) MAINTENANCE OF EFFORT- The Secretary shall approve of the use of the proceeds from the issuance of revenue bonds for the remainder of the net project cost only if the Secretary finds that the aggregate amount of financial support for public transportation in the urbanized area provided by the State and affected local governmental authorities during the next 3 fiscal years, as programmed in the State transportation improvement program under section 5304, is not less than the aggregate amount provided by the State and affected local governmental authorities in the urbanized area during the preceding 3 fiscal years.

‘(3) DEBT SERVICE RESERVE- The Secretary may reimburse an eligible recipient for deposits of bond proceeds in a debt service reserve that the recipient establishes pursuant to section 5302(3)(J) from amounts made available to the recipient under section 5309.

‘(g) Schoolbus Transportation-

‘(1) AGREEMENTS- Financial assistance under this chapter may be used for a capital project, or to operate public transportation equipment or a public transportation facility, only if the applicant agrees not to provide schoolbus transportation that exclusively transports students and school personnel in competition with a private schoolbus operator. This subsection does not apply--

‘(A) to an applicant that operates a school system in the area to be served and a separate and exclusive schoolbus program for the school system; and

‘(B) unless a private schoolbus operator can provide adequate transportation that complies with applicable safety standards at reasonable rates.

‘(2) VIOLATIONS- If the Secretary finds that an applicant, governmental authority, or publicly owned operator has violated the agreement required under paragraph (1), the Secretary shall bar a recipient or an operator from receiving Federal transit assistance in an amount the Secretary considers appropriate.

‘(h) Buying Buses Under Other Laws- Subsections (e) and (g) of this section apply to financial assistance to buy a bus under sections 133 and 142 of title 23.

‘(i) Grant and Loan Prohibitions- A grant or loan may not be used to--

‘(1) pay ordinary governmental or nonproject operating expenses; or

‘(2) support a procurement that uses an exclusionary or discriminatory specification.

‘(j) Government Share of Costs for Certain Projects- A grant for a project to be assisted under this chapter that involves acquiring vehicle-related equipment or facilities required by the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) or vehicle-related equipment or facilities (including clean fuel or alternative fuel vehicle-related equipment or facilities) for purposes of complying with or maintaining compliance with the Clean Air Act, is for 90 percent of the net project cost of such equipment or facilities attributable to compliance with those Acts. The Secretary shall have discretion to determine, through practicable administrative procedures, the costs of such equipment or facilities attributable to compliance with those Acts.

‘(k) Buy America-

‘(1) IN GENERAL- The Secretary may obligate an amount that may be appropriated to carry out this chapter for a project only if the steel, iron, and manufactured goods used in the project are produced in the United States.

‘(2) WAIVER- The Secretary may waive paragraph (1) of this subsection if the Secretary finds that--

‘(A) applying paragraph (1) would be inconsistent with the public interest;

‘(B) the steel, iron, and goods produced in the United States are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality;

‘(C) when procuring rolling stock (including train control, communication, and traction power equipment) under this chapter--

‘(i) the cost of components and subcomponents produced in the United States is more than 60 percent of the cost of all components of the rolling stock; and

‘(ii) final assembly of the rolling stock has occurred in the United States; or

‘(D) including domestic material will increase the cost of the overall project by more than 25 percent.

‘(3) WRITTEN WAIVER DETERMINATION AND ANNUAL REPORT-

‘(A) WRITTEN DETERMINATION- Before issuing a waiver under paragraph (2), the Secretary shall--

‘(i) publish in the Federal Register and make publicly available in an easily identifiable location on the website of the Department of Transportation a detailed written explanation of the waiver determination; and

‘(ii) provide the public with a reasonable period of time for notice and comment.

‘(B) ANNUAL REPORT- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, and annually thereafter, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report listing any waiver issued under paragraph (2) during the preceding year.

‘(4) LABOR COSTS FOR FINAL ASSEMBLY- In this subsection, labor costs involved in final assembly are not included in calculating the cost of components.

‘(5) WAIVER PROHIBITED- The Secretary may not make a waiver under paragraph (2) of this subsection for goods produced in a foreign country if the Secretary, in consultation with the United States Trade Representative, decides that the government of that foreign country--

‘(A) has an agreement with the United States Government under which the Secretary has waived the requirement of this subsection; and

‘(B) has violated the agreement by discriminating against goods to which this subsection applies that are produced in the United States and to which the agreement applies.

‘(6) PENALTY FOR MISLABELING AND MISREPRESENTATION- A person is ineligible under subpart 9.4 of the Federal Acquisition Regulation, or any successor thereto, to receive a contract or subcontract made with amounts authorized under the Federal Public Transportation Act of 2012 if a court or department, agency, or instrumentality of the Government decides the person intentionally--

‘(A) affixed a ‘Made in America’ label, or a label with an inscription having the same meaning, to goods sold in or shipped to the United States that are used in a project to which this subsection applies but not produced in the United States; or

‘(B) represented that goods described in subparagraph (A) of this paragraph were produced in the United States.

‘(7) STATE REQUIREMENTS- The Secretary may not impose any limitation on assistance provided under this chapter that restricts a State from imposing more stringent requirements than this subsection on the use of articles, materials, and supplies mined, produced, or manufactured in foreign countries in projects carried out with that assistance or restricts a recipient of that assistance from complying with those State-imposed requirements.

‘(8) OPPORTUNITY TO CORRECT INADVERTENT ERROR- The Secretary may allow a manufacturer or supplier of steel, iron, or manufactured goods to correct after bid opening any certification of noncompliance or failure to properly complete the certification (but not including failure to sign the certification) under this subsection if such manufacturer or supplier attests under penalty of perjury that such manufacturer or supplier submitted an incorrect certification as a result of an inadvertent or clerical error. The burden of establishing inadvertent or clerical error is on the manufacturer or supplier.

‘(9) ADMINISTRATIVE REVIEW- A party adversely affected by an agency action under this subsection shall have the right to seek review under section 702 of title 5.

‘(10) APPLICATION TO TRANSIT PROGRAMS- The requirements under this subsection shall apply to all contracts eligible for assistance under this chapter for a project carried out within the scope of the applicable finding, determination, or decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding source of such contracts, if at least 1 contract for the project is funded with amounts made available to carry out this chapter.

‘(l) Participation of Governmental Agencies in Design and Delivery of Transportation Services- Governmental agencies and nonprofit organizations that receive assistance from Government sources (other than the Department of Transportation) for nonemergency transportation services shall--

‘(1) participate and coordinate with recipients of assistance under this chapter in the design and delivery of transportation services; and

‘(2) be included in the planning for those services.

‘(m) Relationship to Other Laws-

‘(1) FRAUD AND FALSE STATEMENTS- Section 1001 of title 18 applies to a certificate, submission, or statement provided under this chapter. The Secretary may terminate financial assistance under this chapter and seek reimbursement directly, or by offsetting amounts, available under this chapter if the Secretary determines that a recipient of such financial assistance has made a false or fraudulent statement or related act in connection with a Federal public transportation program.

‘(2) POLITICAL ACTIVITIES OF NONSUPERVISORY EMPLOYEES- The provision of assistance under this chapter shall not be construed to require the application of chapter 15 of title 5 to any nonsupervisory employee of a public transportation system (or any other agency or entity performing related functions) to whom such chapter does not otherwise apply.

‘(n) Preaward and Postdelivery Review of Rolling Stock Purchases- The Secretary shall prescribe regulations requiring a preaward and postdelivery review of a grant under this chapter to buy rolling stock to ensure compliance with Government motor vehicle safety requirements, subsection (k) of this section, and bid specifications requirements of grant recipients under this chapter. Under this subsection, independent inspections and review are required, and a manufacturer certification is not sufficient. Rolling stock procurements of 20 vehicles or fewer made for the purpose of serving other than urbanized areas and urbanized areas with populations of 200,000 or fewer shall be subject to the same requirements as established for procurements of 10 or fewer buses under the post-delivery purchaser’s requirements certification process under section 663.37(c) of title 49, Code of Federal Regulations.

‘(o) Submission of Certifications- A certification required under this chapter and any additional certification or assurance required by law or regulation to be submitted to the Secretary may be consolidated into a single document to be submitted annually as part of a grant application under this chapter. The Secretary shall publish annually a list of all certifications required under this chapter with the publication required under section 5336(d)(2).

‘(p) Grant Requirements- The grant requirements under sections 5307, 5309, and 5337 apply to any project under this chapter that receives any assistance or other financing under chapter 6 (other than section 609) of title 23.

‘(q) Alternative Fueling Facilities- A recipient of assistance under this chapter may allow the incidental use of federally funded alternative fueling facilities and equipment by nontransit public entities and private entities if--

‘(1) the incidental use does not interfere with the recipient’s public transportation operations;

‘(2) all costs related to the incidental use are fully recaptured by the recipient from the nontransit public entity or private entity;

‘(3) the recipient uses revenues received from the incidental use in excess of costs for planning, capital, and operating expenses that are incurred in providing public transportation; and

‘(4) private entities pay all applicable excise taxes on fuel.

‘(r) Fixed Guideway Categorical Exclusion-

‘(1) STUDY- Not later than 6 months after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall conduct a study to determine the feasibility of providing a categorical exclusion for streetcar, bus rapid transit, and light rail projects located within an existing transportation right-of-way from the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) in accordance with the Council on Environmental Quality implementing regulations under parts 1500 through 1508 of title 40, Code of Federal Regulations, or any successor thereto.

‘(2) FINDINGS AND RULES- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue findings and, if appropriate, issue rules to provide categorical exclusions for suitable categories of projects.’.

SEC. 20018. CONTRACT REQUIREMENTS.

Section 5325 of title 49, United States Code, is amended--

(1) in subsection (e), by striking paragraph (1) and inserting the following:

‘(1) CONTRACTS- A recipient procuring rolling stock with Government financial assistance under this chapter may make a multiyear contract to buy the rolling stock and replacement parts under which the recipient has an option to buy additional rolling stock or replacement parts for--

‘(A) not more than 5 years after the date of the original contract for bus procurements; and

‘(B) not more than 7 years after the date of the original contract for rail procurements, provided that such option does not allow for significant changes or alterations to the rolling stock.’.

(2) in subsection (h), by striking ‘Federal Public Transportation Act of 2005’ and inserting ‘Federal Public Transportation Act of 2012’;

(3) in subsection (j)(2)(C), by striking ‘, including the performance reported in the Contractor Performance Assessment Reports required under section 5309(l)(2)’; and

(4) by adding at the end the following:

‘(k) Veterans Employment- Recipients and subrecipients of Federal financial assistance under this chapter shall ensure that contractors working on a capital project funded using such assistance give a hiring preference to veterans, as defined in section 2108 of title 5, who have the requisite skills and abilities to perform the construction work required under the contract.’.

SEC. 20019. TRANSIT ASSET MANAGEMENT.

Section 5326 of title 49, United States Code, is amended to read as follows:

‘Sec. 5326. Transit asset management

‘(a) Definitions- In this section the following definitions shall apply:

‘(1) CAPITAL ASSET- The term ‘capital asset’ includes equipment, rolling stock, infrastructure, and facilities for use in public transportation and owned or leased by a recipient or subrecipient of Federal financial assistance under this chapter.

‘(2) TRANSIT ASSET MANAGEMENT PLAN- The term ‘transit asset management plan’ means a plan developed by a recipient of funding under this chapter that--

‘(A) includes, at a minimum, capital asset inventories and condition assessments, decision support tools, and investment prioritization; and

‘(B) the recipient certifies complies with the rule issued under this section.

‘(3) TRANSIT ASSET MANAGEMENT SYSTEM- The term ‘transit asset management system’ means a strategic and systematic process of operating, maintaining, and improving public transportation capital assets effectively throughout the life cycle of such assets.

‘(b) Transit Asset Management System- The Secretary shall establish and implement a national transit asset management system, which shall include--

‘(1) a definition of the term ‘state of good repair’ that includes objective standards for measuring the condition of capital assets of recipients, including equipment, rolling stock, infrastructure, and facilities;

‘(2) a requirement that recipients and subrecipients of Federal financial assistance under this chapter develop a transit asset management plan;

‘(3) a requirement that each recipient of Federal financial assistance under this chapter report on the condition of the system of the recipient and provide a description of any change in condition since the last report;

‘(4) an analytical process or decision support tool for use by public transportation systems that--

‘(A) allows for the estimation of capital investment needs of such systems over time; and

‘(B) assists with asset investment prioritization by such systems; and

‘(5) technical assistance to recipients of Federal financial assistance under this chapter.

‘(c) Performance Measures and Targets-

‘(1) IN GENERAL- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue a final rule to establish performance measures based on the state of good repair standards established under subsection (b)(1).

‘(2) TARGETS- Not later than 3 months after the date on which the Secretary issues a final rule under paragraph (1), and each fiscal year thereafter, each recipient of Federal financial assistance under this chapter shall establish performance targets in relation to the performance measures established by the Secretary.

‘(3) REPORTS- Each recipient of Federal financial assistance under this chapter shall submit to the Secretary an annual report that describes--

‘(A) the progress of the recipient during the fiscal year to which the report relates toward meeting the performance targets established under paragraph (2) for that fiscal year; and

‘(B) the performance targets established by the recipient for the subsequent fiscal year.

‘(d) Rulemaking- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue a final rule to implement the transit asset management system described in subsection (b).’.

SEC. 20020. PROJECT MANAGEMENT OVERSIGHT.

Section 5327 of title 49, United States Code, is amended--

(1) in subsection (a)--

(A) in the matter preceding paragraph (1), by striking ‘United States’ and all that follows through ‘Secretary of Transportation’ and inserting the following: ‘Federal financial assistance for a major capital project for public transportation under this chapter or any other provision of Federal law, a recipient must prepare a project management plan approved by the Secretary and carry out the project in accordance with the project management plan’; and

(B) in paragraph (12), by striking ‘each month’ and inserting ‘quarterly’;

(2) by striking subsections (c), (d), and (f);

(3) by inserting after subsection (b) the following:

‘(c) Access to Sites and Records- Each recipient of Federal financial assistance for public transportation under this chapter or any other provision of Federal law shall provide the Secretary and a contractor the Secretary chooses under section 5338(g) with access to the construction sites and records of the recipient when reasonably necessary.’;

(4) by redesignating subsection (e) as subsection (d); and

(5) in subsection (d), as so redesignated--

(A) in paragraph (1), by striking ‘subsection (c) of this section’ and inserting ‘section 5338(g)’; and

(B) in paragraph (2)--

(i) by striking ‘preliminary engineering stage’ and inserting ‘project development phase’; and

(ii) by striking ‘another stage’ and inserting ‘another phase’.

SEC. 20021. PUBLIC TRANSPORTATION SAFETY.

(a) Public Transportation Safety Program- Section 5329 of title 49, United States Code, is amended to read as follows:

‘Sec. 5329. Public transportation safety program

‘(a) Definition- In this section, the term ‘recipient’ means a State or local governmental authority, or any other operator of a public transportation system, that receives financial assistance under this chapter.

‘(b) National Public Transportation Safety Plan-

‘(1) IN GENERAL- The Secretary shall create and implement a national public transportation safety plan to improve the safety of all public transportation systems that receive funding under this chapter.

‘(2) CONTENTS OF PLAN- The national public transportation safety plan under paragraph (1) shall include--

‘(A) safety performance criteria for all modes of public transportation;

‘(B) the definition of the term ‘state of good repair’ established under section 5326(b);

‘(C) minimum safety performance standards for public transportation vehicles used in revenue operations that--

‘(i) do not apply to rolling stock otherwise regulated by the Secretary or any other Federal agency; and

‘(ii) to the extent practicable, take into consideration--

‘(I) relevant recommendations of the National Transportation Safety Board; and

‘(II) recommendations of, and best practices standards developed by, the public transportation industry; and

‘(D) a public transportation safety certification training program, as described in subsection (c).

‘(c) Public Transportation Safety Certification Training Program-

‘(1) IN GENERAL- The Secretary shall establish a public transportation safety certification training program for Federal and State employees, or other designated personnel, who conduct safety audits and examinations of public transportation systems and employees of public transportation agencies directly responsible for safety oversight.

‘(2) INTERIM PROVISIONS- Not later than 90 days after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall establish interim provisions for the certification and training of the personnel described in paragraph (1), which shall be in effect until the effective date of the final rule issued by the Secretary to implement this subsection.

‘(d) Public Transportation Agency Safety Plan-

‘(1) IN GENERAL- Effective 1 year after the effective date of a final rule issued by the Secretary to carry out this subsection, each recipient shall certify that the recipient has established a comprehensive agency safety plan that includes, at a minimum--

‘(A) a requirement that the board of directors (or equivalent entity) of the recipient approve the agency safety plan and any updates to the agency safety plan;

‘(B) methods for identifying and evaluating safety risks throughout all elements of the public transportation system of the recipient;

‘(C) strategies to minimize the exposure of the public, personnel, and property to hazards and unsafe conditions;

‘(D) a process and timeline for conducting an annual review and update of the safety plan of the recipient;

‘(E) performance targets based on the safety performance criteria and state of good repair standards established under subparagraphs (A) and (B), respectively, of subsection (b)(2);

‘(F) assignment of an adequately trained safety officer who reports directly to the general manager, president, or equivalent officer of the recipient; and

‘(G) a comprehensive staff training program for the operations personnel and personnel directly responsible for safety of the recipient that includes--

‘(i) the completion of a safety training program; and

‘(ii) continuing safety education and training.

‘(2) INTERIM AGENCY SAFETY PLAN- A system safety plan developed pursuant to part 659 of title 49, Code of Federal Regulations, as in effect on the date of enactment of the Federal Public Transportation Act of 2012, shall remain in effect until such time as this subsection takes effect.

‘(e) State Safety Oversight Program-

‘(1) APPLICABILITY- This subsection applies only to eligible States.

‘(2) DEFINITION- In this subsection, the term ‘eligible State’ means a State that has--

‘(A) a rail fixed guideway public transportation system within the jurisdiction of the State that is not subject to regulation by the Federal Railroad Administration; or

‘(B) a rail fixed guideway public transportation system in the engineering or construction phase of development within the jurisdiction of the State that will not be subject to regulation by the Federal Railroad Administration.

‘(3) IN GENERAL- In order to obligate funds apportioned under section 5338 to carry out this chapter, effective 3 years after the date on which a final rule under this subsection becomes effective, an eligible State shall have in effect a State safety oversight program approved by the Secretary under which the State--

‘(A) assumes responsibility for overseeing rail fixed guideway public transportation safety;

‘(B) adopts and enforces Federal law on rail fixed guideway public transportation safety;

‘(C) establishes a State safety oversight agency;

‘(D) determines, in consultation with the Secretary, an appropriate staffing level for the State safety oversight agency that is commensurate with the number, size, and complexity of the rail fixed guideway public transportation systems in the eligible State;

‘(E) requires that employees and other designated personnel of the eligible State safety oversight agency who are responsible for rail fixed guideway public transportation safety oversight are qualified to perform such functions through appropriate training, including successful completion of the public transportation safety certification training program established under subsection (c); and

‘(F) prohibits any public transportation agency from providing funds to the State safety oversight agency or an entity designated by the eligible State as the State safety oversight agency under paragraph (4).

‘(4) STATE SAFETY OVERSIGHT AGENCY-

‘(A) IN GENERAL- Each State safety oversight program shall establish a State safety oversight agency that--

‘(i) is an independent legal entity responsible for the safety of rail fixed guideway public transportation systems;

‘(ii) is financially and legally independent from any public transportation entity that the State safety oversight agency oversees;

‘(iii) does not fund, promote, or provide public transportation services;

‘(iv) does not employ any individual who is also responsible for the administration of public transportation programs;

‘(v) has the authority to review, approve, oversee, and enforce the implementation by the rail fixed guideway public transportation agency of the public transportation agency safety plan required under subsection (d);

‘(vi) has investigative and enforcement authority with respect to the safety of rail fixed guideway public transportation systems of the eligible State;

‘(vii) audits, at least once triennially, the compliance of the rail fixed guideway public transportation systems in the eligible State subject to this subsection with the public transportation agency safety plan required under subsection (d); and

‘(viii) provides, at least once annually, a status report on the safety of the rail fixed guideway public transportation systems the State safety oversight agency oversees to--

‘(I) the Federal Transit Administration;

‘(II) the Governor of the eligible State; and

‘(III) the board of directors, or equivalent entity, of any rail fixed guideway public transportation system that the State safety oversight agency oversees.

‘(B) WAIVER- At the request of an eligible State, the Secretary may waive clauses (i) and (iii) of subparagraph (A) for eligible States with 1 or more rail fixed guideway systems in revenue operations, design, or construction, that--

‘(i) have fewer than 1,000,000 combined actual and projected rail fixed guideway revenue miles per year; or

‘(ii) provide fewer than 10,000,000 combined actual and projected unlinked passenger trips per year.

‘(5) ENFORCEMENT- Each State safety oversight agency shall have the authority to request that the Secretary take enforcement actions available under subsection (g) against a rail fixed guideway public transportation system that is not in compliance with Federal safety laws.

‘(6) PROGRAMS FOR MULTI-STATE RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS- An eligible State that has within the jurisdiction of the eligible State a rail fixed guideway public transportation system that operates in more than 1 eligible State shall--

‘(A) jointly with all other eligible States in which the rail fixed guideway public transportation system operates, ensure uniform safety standards and enforcement procedures that shall be in compliance with this section, and establish and implement a State safety oversight program approved by the Secretary; or

‘(B) jointly with all other eligible States in which the rail fixed guideway public transportation system operates, designate an entity having characteristics consistent with the characteristics described in paragraph (3) to carry out the State safety oversight program approved by the Secretary.

‘(7) GRANTS-

‘(A) IN GENERAL- The Secretary may make a grant to an eligible State to develop or carry out a State safety oversight program, if the eligible State submits--

‘(i) a proposal for the establishment of a State safety oversight program to the Secretary for review and written approval before implementing a State safety oversight program; and

‘(ii) any amendment to the State safety oversight program of the eligible State to the Secretary for review not later than 60 days before the effective date of the amendment.

‘(B) DETERMINATION BY SECRETARY-

‘(i) IN GENERAL- The Secretary shall transmit written approval to an eligible State that submits a State safety oversight program, if the Secretary determines the State safety oversight program meets the requirements of this subsection and the State safety oversight program is adequate to promote the purposes of this section.

‘(ii) AMENDMENT- The Secretary shall transmit to an eligible State that submits an amendment under subparagraph (A)(ii) a written determination with respect to the amendment.

‘(iii) NO WRITTEN DECISION- If an eligible State does not receive a written decision from the Secretary with respect to an amendment submitted under subparagraph (A)(ii) before the end of the 60-day period beginning on the date on which the eligible State submits the amendment, the amendment shall be deemed to be approved.

‘(iv) DISAPPROVAL- If the Secretary determines that a State safety oversight program does not meet the requirements of this subsection, the Secretary shall transmit to the eligible State a written explanation and allow the eligible State to modify and resubmit the State safety oversight program for approval.

‘(C) GOVERNMENT SHARE-

‘(i) IN GENERAL- The Government share of the reasonable cost of a State safety oversight program developed or carried out using a grant under this paragraph shall be 80 percent.

‘(ii) IN-KIND CONTRIBUTIONS- Any calculation of the non-Government share of a State safety oversight program shall include in-kind contributions by an eligible State.

‘(iii) NON-GOVERNMENT SHARE- The non-Government share of the cost of a State safety oversight program developed or carried out using a grant under this paragraph may not be met by--

‘(I) any Federal funds;

‘(II) any funds received from a public transportation agency; or

‘(III) any revenues earned by a public transportation agency.

‘(iv) SAFETY TRAINING PROGRAM- The Secretary may reimburse an eligible State or a recipient for the full costs of participation in the public transportation safety certification training program established under subsection (c) by an employee of a State safety oversight agency or a recipient who is directly responsible for safety oversight.

‘(8) CONTINUAL EVALUATION OF PROGRAM- The Secretary shall continually evaluate the implementation of a State safety oversight program by a State safety oversight agency, on the basis of--

‘(A) reports submitted by the State safety oversight agency under paragraph (4)(A)(viii); and

‘(B) audits carried out by the Secretary.

‘(9) INADEQUATE PROGRAM-

‘(A) IN GENERAL- If the Secretary finds that a State safety oversight program approved by the Secretary is not being carried out in accordance with this section or has become inadequate to ensure the enforcement of Federal safety regulations, the Secretary shall--

‘(i) transmit to the eligible State a written explanation of the reason the program has become inadequate and inform the State of the intention to withhold funds, including the amount of funds proposed to be withheld under this section, or withdraw approval of the State safety oversight program; and

‘(ii) allow the eligible State a reasonable period of time to modify the State safety oversight program or implementation of the program and submit an updated proposal for the State safety oversight program to the Secretary for approval.

‘(B) FAILURE TO CORRECT- If the Secretary determines that a modification by an eligible State of the State safety oversight program is not sufficient to ensure the enforcement of Federal safety regulations, the Secretary may--

‘(i) withhold funds available under this section in an amount determined by the Secretary; or

‘(ii) provide written notice of withdrawal of State safety oversight program approval.

‘(C) TEMPORARY OVERSIGHT- In the event the Secretary takes action under subparagraph (B)(ii), the Secretary shall provide oversight of the rail fixed guideway systems in an eligible State until the State submits a State safety oversight program approved by the Secretary.

‘(D) RESTORATION-

‘(i) CORRECTION- The eligible State shall address any inadequacy to the satisfaction of the Secretary prior to the Secretary restoring funds withheld under this paragraph.

‘(ii) AVAILABILITY AND REALLOCATION- Any funds withheld under this paragraph shall remain available for restoration to the eligible State until the end of the first fiscal year after the fiscal year in which the funds were withheld, after which time the funds shall be available to the Secretary for allocation to other eligible States under this section.

‘(10) FEDERAL OVERSIGHT- The Secretary shall--

‘(A) oversee the implementation of each State safety oversight program under this subsection;

‘(B) audit the operations of each State safety oversight agency at least once triennially; and

‘(C) issue rules to carry out this subsection.

‘(f) Authority of Secretary- In carrying out this section, the Secretary may--

‘(1) conduct inspections, investigations, audits, examinations, and testing of the equipment, facilities, rolling stock, and operations of the public transportation system of a recipient;

‘(2) make reports and issue directives with respect to the safety of the public transportation system of a recipient;

‘(3) in conjunction with an accident investigation or an investigation into a pattern or practice of conduct that negatively affects public safety, issue a subpoena to, and take the deposition of, any employee of a recipient or a State safety oversight agency, if--

‘(A) before the issuance of the subpoena, the Secretary requests a determination by the Attorney General of the United States as to whether the subpoena will interfere with an ongoing criminal investigation; and

‘(B) the Attorney General--

‘(i) determines that the subpoena will not interfere with an ongoing criminal investigation; or

‘(ii) fails to make a determination under clause (i) before the date that is 30 days after the date on which the Secretary makes a request under subparagraph (A);

‘(4) require the production of documents by, and prescribe recordkeeping and reporting requirements for, a recipient or a State safety oversight agency;

‘(5) investigate public transportation accidents and incidents and provide guidance to recipients regarding prevention of accidents and incidents;

‘(6) at reasonable times and in a reasonable manner, enter and inspect equipment, facilities, rolling stock, operations, and relevant records of the public transportation system of a recipient; and

‘(7) issue rules to carry out this section.

‘(g) Enforcement Actions-

‘(1) TYPES OF ENFORCEMENT ACTIONS- The Secretary may take enforcement action against a recipient that does not comply with Federal law with respect to the safety of the public transportation system, including--

‘(A) issuing directives;

‘(B) requiring more frequent oversight of the recipient by a State safety oversight agency or the Secretary;

‘(C) imposing more frequent reporting requirements;

‘(D) requiring that any Federal financial assistance provided under this chapter be spent on correcting safety deficiencies identified by the Secretary or the State safety oversight agency before such funds are spent on other projects;

‘(E) subject to paragraph (2), withholding Federal financial assistance, in an amount to be determined by the Secretary, from the recipient, until such time as the recipient comes into compliance with this section; and

‘(F) subject to paragraph (3), imposing a civil penalty, in an amount to be determined by the Secretary.

‘(2) USE OR WITHHOLDING OF FUNDS-

‘(A) IN GENERAL- The Secretary may require the use of funds in accordance with paragraph (1)(D), or withhold funds under paragraph (1)(E), only if the Secretary finds that a recipient is engaged in a pattern or practice of serious safety violations or has otherwise refused to comply with Federal law relating to the safety of the public transportation system.

‘(B) NOTICE- Before withholding funds from a recipient under paragraph (1)(E), the Secretary shall provide to the recipient--

‘(i) written notice of a violation and the amount proposed to be withheld; and

‘(ii) a reasonable period of time within which the recipient may address the violation or propose and initiate an alternative means of compliance that the Secretary determines is acceptable.

‘(C) FAILURE TO ADDRESS- If the recipient does not address the violation or propose an alternative means of compliance that the Secretary determines is acceptable within the period of time specified in the written notice, the Secretary may withhold funds under paragraph (1)(E).

‘(D) RESTORATION-

‘(i) CORRECTION- The recipient shall address any violation to the satisfaction of the Secretary prior to the Secretary restoring funds withheld under paragraph (1)(E).

‘(ii) AVAILABILITY AND REALLOCATION- Any funds withheld under paragraph (1)(E) shall remain available for restoration to the recipient until the end of the first fiscal year after the fiscal year in which the funds were withheld, after which time the funds shall be available to the Secretary for allocation to other eligible recipients.

‘(E) NOTIFICATION- Not later than 3 days before taking any action under subparagraph (C), the Secretary shall notify the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives of such action.

‘(3) CIVIL PENALTIES-

‘(A) IMPOSITION OF CIVIL PENALTIES-

‘(i) IN GENERAL- The Secretary may impose a civil penalty under paragraph (1)(F) only if--

‘(I) the Secretary has exhausted the enforcement actions available under subparagraphs (A) through (E) of paragraph (1); and

‘(II) the recipient continues to be in violation of Federal safety law.

‘(ii) EXCEPTION- The Secretary may waive the requirement under clause (i)(I) if the Secretary determines that such a waiver is in the public interest.

‘(B) NOTICE- Before imposing a civil penalty on a recipient under paragraph (1)(F), the Secretary shall provide to the recipient--

‘(i) written notice of any violation and the penalty proposed to be imposed; and

‘(ii) a reasonable period of time within which the recipient may address the violation or propose and initiate an alternative means of compliance that the Secretary determines is acceptable.

‘(C) FAILURE TO ADDRESS- If the recipient does not address the violation or propose an alternative means of compliance that the Secretary determines is acceptable within the period of time specified in the written notice, the Secretary may impose a civil penalty under paragraph (1)(F).

‘(D) NOTIFICATION- Not later than 3 days before taking any action under subparagraph (C), the Secretary shall notify the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives of such action.

‘(E) DEPOSIT OF CIVIL PENALTIES- Any amounts collected by the Secretary under this paragraph shall be deposited into the Mass Transit Account of the Highway Trust Fund.

‘(4) ENFORCEMENT BY THE ATTORNEY GENERAL- At the request of the Secretary, the Attorney General may bring a civil action--

‘(A) for appropriate injunctive relief to ensure compliance with this section;

‘(B) to collect a civil penalty imposed under paragraph (1)(F); and

‘(C) to enforce a subpoena, request for admissions, request for production of documents or other tangible things, or request for testimony by deposition issued by the Secretary under this section.

‘(h) Cost-benefit Analysis-

‘(1) ANALYSIS REQUIRED- In carrying out this section, the Secretary shall take into consideration the costs and benefits of each action the Secretary proposes to take under this section.

‘(2) WAIVER- The Secretary may waive the requirement under this subsection if the Secretary determines that such a waiver is in the public interest.

‘(i) Consultation by the Secretary of Homeland Security- The Secretary of Homeland Security shall consult with the Secretary of Transportation before the Secretary of Homeland Security issues a rule or order that the Secretary of Transportation determines affects the safety of public transportation design, construction, or operations.

‘(j) Preemption of State Law-

‘(1) NATIONAL UNIFORMITY OF REGULATION- Laws, regulations, and orders related to public transportation safety shall be nationally uniform to the extent practicable.

‘(2) IN GENERAL- A State may adopt or continue in force a law, regulation, or order related to the safety of public transportation until the Secretary issues a rule or order covering the subject matter of the State requirement.

‘(3) MORE STRINGENT LAW- A State may adopt or continue in force a law, regulation, or order related to the safety of public transportation that is consistent with, in addition to, or more stringent than a regulation or order of the Secretary if the Secretary determines that the law, regulation, or order--

‘(A) has a safety benefit;

‘(B) is not incompatible with a law, regulation, or order, or the terms and conditions of a financial assistance agreement of the United States Government; and

‘(C) does not unreasonably burden interstate commerce.

‘(4) ACTIONS UNDER STATE LAW-

‘(A) RULE OF CONSTRUCTION- Nothing in this section shall be construed to preempt an action under State law seeking damages for personal injury, death, or property damage alleging that a party has failed to comply with--

‘(i) a Federal standard of care established by a regulation or order issued by the Secretary under this section;

‘(ii) its own program, rule, or standard that it created pursuant to a rule or order issued by the Secretary; or

‘(iii) a State law, regulation, or order that is not incompatible with paragraph (2).

‘(B) EFFECTIVE DATE- This paragraph shall apply to any cause of action under State law arising from an event or activity occurring on or after the date of enactment of the Federal Public Transportation Act of 2012.

‘(5) JURISDICTION- Nothing in this section shall be construed to create a cause of action under Federal law on behalf of an injured party or confer Federal question jurisdiction for a State law cause of action.

‘(k) Annual Report- The Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives an annual report that--

‘(1) analyzes public transportation safety trends among the States and documents the most effective safety programs implemented using grants under this section; and

‘(2) describes the effect on public transportation safety of activities carried out using grants under this section.’.

(b) Bus Safety Study-

(1) DEFINITION- In this subsection, the term ‘highway route’ means a route where 50 percent or more of the route is on roads having a speed limit of more than 45 miles per hour.

(2) STUDY- Not later than 180 days after the date of enactment of this Act, the Secretary of Transportation shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that--

(A) examines the safety of public transportation buses that travel on highway routes;

(B) examines laws and regulations that apply to commercial over-the-road buses; and

(C) makes recommendations as to whether additional safety measures should be required for public transportation buses that travel on highway routes.

SEC. 20022. ALCOHOL AND CONTROLLED SUBSTANCES TESTING.

Section 5331(b)(2) of title 49, United States Code, is amended--

(1) by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively; and

(2) by inserting before subparagraph (B), as so redesignated, the following:

‘(A) shall establish and implement an enforcement program that includes the imposition of penalties for failure to comply with this section;’.

SEC. 20023. NONDISCRIMINATION.

(a) Amendments- Section 5332 of title 49, United States Code, is amended--

(1) in subsection (b)--

(A) by striking ‘creed’ and inserting ‘religion’; and

(B) by inserting ‘disability,’ after ‘sex,’; and

(2) in subsection (d)(3), by striking ‘and’ and inserting ‘or’.

(b) Evaluation and Report-

(1) EVALUATION- The Comptroller General of the United States shall evaluate the progress and effectiveness of the Federal Transit Administration in assisting recipients of assistance under chapter 53 of title 49, United States Code, to comply with section 5332(b) of title 49, including--

(A) by reviewing discrimination complaints, reports, and other relevant information collected or prepared by the Federal Transit Administration or recipients of assistance from the Federal Transit Administration pursuant to any applicable civil rights statute, regulation, or other requirement; and

(B) by reviewing the process that the Federal Transit Administration uses to resolve discrimination complaints filed by members of the public.

(2) REPORT- Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report concerning the evaluation under paragraph (1) that includes--

(A) a description of the ability of the Federal Transit Administration to address discrimination and foster equal opportunities in federally funded public transportation projects, programs, and activities;

(B) recommendations for improvements if the Comptroller General determines that improvements are necessary; and

(C) information upon which the evaluation under paragraph (1) is based.

SEC. 20024. LABOR STANDARDS.

Section 5333(b) of title 49, United States Code, is amended--

(1) in paragraph (1), by striking ‘sections 5307-5312, 5316, 5318, 5323(a)(1), 5323(b), 5323(d), 5328, 5337, and 5338(b)’ each place that term appears and inserting ‘sections 5307, 5308, 5309, 5311, and 5337’; and

(2) in paragraph (5), by inserting ‘of Labor’ after ‘Secretary’.

SEC. 20025. ADMINISTRATIVE PROVISIONS.

Section 5334 of title 49, United States Code, is amended--

(1) in subsection (a)(1), by striking ‘under sections 5307 and 5309-5311 of this title’ and inserting ‘that receives Federal financial assistance under this chapter’;

(2) in subsection (b)(1)--

(A) by inserting after ‘emergency,’ the following: ‘or for purposes of establishing and enforcing a program to improve the safety of public transportation systems in the United States,’; and

(B) by striking ‘chapter, nor may the Secretary’ and inserting ‘chapter. The Secretary may not’;

(3) in subsection (c)(4), by striking ‘section (except subsection (i)) and sections 5318(e), 5323(a)(2), 5325(a), 5325(b), and 5325(f)’ and inserting ‘subsection’;

(4) in subsection (h)(3), by striking ‘another’ and inserting ‘any other’;

(5) in subsection (i)(1), by striking ‘title 23 shall’ and inserting ‘title 23 may’;

(6) by striking subsection (j); and

(7) by redesignating subsections (k) and (l) as subsections (j) and (k), respectively.

SEC. 20026. NATIONAL TRANSIT DATABASE.

Section 5335 of title 49, United States Code, is amended by adding at the end the following:

‘(c) Data Required To Be Reported- The recipient of a grant under this chapter shall report to the Secretary, for inclusion in the National Transit Database, any information relating to--

‘(1) the causes of a reportable incident, as defined by the Secretary; and

‘(2) a transit asset inventory or condition assessment conducted by the recipient.’.

SEC. 20027. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA GRANTS.

Section 5336 of title 49, United States Code, is amended to read as follows:

‘Sec. 5336. Apportionment of appropriations for formula grants

‘(a) Based on Urbanized Area Population- Of the amount apportioned under subsection (h)(4) to carry out section 5307--

‘(1) 9.32 percent shall be apportioned each fiscal year only in urbanized areas with a population of less than 200,000 so that each of those areas is entitled to receive an amount equal to--

‘(A) 50 percent of the total amount apportioned multiplied by a ratio equal to the population of the area divided by the total population of all urbanized areas with populations of less than 200,000 as shown in the most recent decennial census; and

‘(B) 50 percent of the total amount apportioned multiplied by a ratio for the area based on population weighted by a factor, established by the Secretary, of the number of inhabitants in each square mile; and

‘(2) 90.68 percent shall be apportioned each fiscal year only in urbanized areas with populations of at least 200,000 as provided in subsections (b) and (c) of this section.

‘(b) Based on Fixed Guideway Vehicle Revenue Miles, Directional Route Miles, and Passenger Miles- (1) In this subsection, ‘fixed guideway vehicle revenue miles’ and ‘fixed guideway directional route miles’ include passenger ferry operations directly or under contract by the designated recipient.

‘(2) Of the amount apportioned under subsection (a)(2) of this section, 33.29 percent shall be apportioned as follows:

‘(A) 95.61 percent of the total amount apportioned under this subsection shall be apportioned so that each urbanized area with a population of at least 200,000 is entitled to receive an amount equal to--

‘(i) 60 percent of the 95.61 percent apportioned under this subparagraph multiplied by a ratio equal to the number of fixed guideway vehicle revenue miles attributable to the area, as established by the Secretary, divided by the total number of all fixed guideway vehicle revenue miles attributable to all areas; and

‘(ii) 40 percent of the 95.61 percent apportioned under this subparagraph multiplied by a ratio equal to the number of fixed guideway directional route miles attributable to the area, established by the Secretary, divided by the total number of all fixed guideway directional route miles attributable to all areas.

An urbanized area with a population of at least 750,000 in which commuter rail transportation is provided shall receive at least .75 percent of the total amount apportioned under this subparagraph.

‘(B) 4.39 percent of the total amount apportioned under this subsection shall be apportioned so that each urbanized area with a population of at least 200,000 is entitled to receive an amount equal to--

‘(i) the number of fixed guideway vehicle passenger miles traveled multiplied by the number of fixed guideway vehicle passenger miles traveled for each dollar of operating cost in an area; divided by

‘(ii) the total number of fixed guideway vehicle passenger miles traveled multiplied by the total number of fixed guideway vehicle passenger miles traveled for each dollar of operating cost in all areas.

An urbanized area with a population of at least 750,000 in which commuter rail transportation is provided shall receive at least .75 percent of the total amount apportioned under this subparagraph.

‘(C) Under subparagraph (A) of this paragraph, fixed guideway vehicle revenue or directional route miles, and passengers served on those miles, in an urbanized area with a population of less than 200,000, where the miles and passengers served otherwise would be attributable to an urbanized area with a population of at least 1,000,000 in an adjacent State, are attributable to the governmental authority in the State in which the urbanized area with a population of less than 200,000 is located. The authority is deemed an urbanized area with a population of at least 200,000 if the authority makes a contract for the service.

‘(D) A recipient’s apportionment under subparagraph (A)(i) of this paragraph may not be reduced if the recipient, after satisfying the Secretary that energy or operating efficiencies would be achieved, reduces vehicle revenue miles but provides the same frequency of revenue service to the same number of riders.

‘(c) Based on Bus Vehicle Revenue Miles and Passenger Miles- Of the amount apportioned under subsection (a)(2) of this section, 66.71 percent shall be apportioned as follows:

‘(1) 90.8 percent of the total amount apportioned under this subsection shall be apportioned as follows:

‘(A) 73.39 percent of the 90.8 percent apportioned under this paragraph shall be apportioned so that each urbanized area with a population of at least 1,000,000 is entitled to receive an amount equal to--

‘(i) 50 percent of the 73.39 percent apportioned under this subparagraph multiplied by a ratio equal to the total bus vehicle revenue miles operated in or directly serving the urbanized area divided by the total bus vehicle revenue miles attributable to all areas;

‘(ii) 25 percent of the 73.39 percent apportioned under this subparagraph multiplied by a ratio equal to the population of the area divided by the total population of all areas, as shown in the most recent decennial census; and

‘(iii) 25 percent of the 73.39 percent apportioned under this subparagraph multiplied by a ratio for the area based on population weighted by a factor, established by the Secretary, of the number of inhabitants in each square mile.

‘(B) 26.61 percent of the 90.8 percent apportioned under this paragraph shall be apportioned so that each urbanized area with a population of at least 200,000 but not more than 999,999 is entitled to receive an amount equal to--

‘(i) 50 percent of the 26.61 percent apportioned under this subparagraph multiplied by a ratio equal to the total bus vehicle revenue miles operated in or directly serving the urbanized area divided by the total bus vehicle revenue miles attributable to all areas;

‘(ii) 25 percent of the 26.61 percent apportioned under this subparagraph multiplied by a ratio equal to the population of the area divided by the total population of all areas, as shown by the most recent decennial census; and

‘(iii) 25 percent of the 26.61 percent apportioned under this subparagraph multiplied by a ratio for the area based on population weighted by a factor, established by the Secretary, of the number of inhabitants in each square mile.

‘(2) 9.2 percent of the total amount apportioned under this subsection shall be apportioned so that each urbanized area with a population of at least 200,000 is entitled to receive an amount equal to--

‘(A) the number of bus passenger miles traveled multiplied by the number of bus passenger miles traveled for each dollar of operating cost in an area; divided by

‘(B) the total number of bus passenger miles traveled multiplied by the total number of bus passenger miles traveled for each dollar of operating cost in all areas.

‘(d) Date of Apportionment- The Secretary shall--

‘(1) apportion amounts appropriated under section 5338(a)(2)(C) of this title to carry out section 5307 of this title not later than the 10th day after the date the amounts are appropriated or October 1 of the fiscal year for which the amounts are appropriated, whichever is later; and

‘(2) publish apportionments of the amounts, including amounts attributable to each urbanized area with a population of more than 50,000 and amounts attributable to each State of a multistate urbanized area, on the apportionment date.

‘(e) Amounts Not Apportioned to Designated Recipients- The Governor of a State may expend in an urbanized area with a population of less than 200,000 an amount apportioned under this section that is not apportioned to a designated recipient, as defined in section 5302(4).

‘(f) Transfers of Apportionments- (1) The Governor of a State may transfer any part of the State’s apportionment under subsection (a)(1) of this section to supplement amounts apportioned to the State under section 5311(c)(3). The Governor may make a transfer only after consulting with responsible local officials and publicly owned operators of public transportation in each area for which the amount originally was apportioned under this section.

‘(2) The Governor of a State may transfer any part of the State’s apportionment under section 5311(c)(3) to supplement amounts apportioned to the State under subsection (a)(1) of this section.

‘(3) The Governor of a State may use throughout the State amounts of a State’s apportionment remaining available for obligation at the beginning of the 90-day period before the period of the availability of the amounts expires.

‘(4) A designated recipient for an urbanized area with a population of at least 200,000 may transfer a part of its apportionment under this section to the Governor of a State. The Governor shall distribute the transferred amounts to urbanized areas under this section.

‘(5) Capital and operating assistance limitations applicable to the original apportionment apply to amounts transferred under this subsection.

‘(g) Period of Availability to Recipients- An amount apportioned under this section may be obligated by the recipient for 5 years after the fiscal year in which the amount is apportioned. Not later than 30 days after the end of the 5-year period, an amount that is not obligated at the end of that period shall be added to the amount that may be apportioned under this section in the next fiscal year.

‘(h) Apportionments- Of the amounts made available for each fiscal year under section 5338(a)(2)(C)--

‘(1) $35,000,000 shall be set aside to carry out section 5307(i);

‘(2) 3.07 percent shall be apportioned to urbanized areas in accordance with subsection (j);

‘(3) of amounts not apportioned under paragraphs (1) and (2), 1 percent shall be apportioned to urbanized areas with populations of less than 200,000 in accordance with subsection (i); and

‘(4) any amount not apportioned under paragraphs (1), (2), and (3) shall be apportioned to urbanized areas in accordance with subsections (a) through (c).

‘(i) Small Transit Intensive Cities Formula-

‘(1) DEFINITIONS- In this subsection, the following definitions apply:

‘(A) ELIGIBLE AREA- The term ‘eligible area’ means an urbanized area with a population of less than 200,000 that meets or exceeds in one or more performance categories the industry average for all urbanized areas with a population of at least 200,000 but not more than 999,999, as determined by the Secretary in accordance with subsection (c)(2).

‘(B) PERFORMANCE CATEGORY- The term ‘performance category’ means each of the following:

‘(i) Passenger miles traveled per vehicle revenue mile.

‘(ii) Passenger miles traveled per vehicle revenue hour.

‘(iii) Vehicle revenue miles per capita.

‘(iv) Vehicle revenue hours per capita.

‘(v) Passenger miles traveled per capita.

‘(vi) Passengers per capita.

‘(2) APPORTIONMENT-

‘(A) APPORTIONMENT FORMULA- The amount to be apportioned under subsection (h)(3) shall be apportioned among eligible areas in the ratio that--

‘(i) the number of performance categories for which each eligible area meets or exceeds the industry average in urbanized areas with a population of at least 200,000 but not more than 999,999; bears to

‘(ii) the aggregate number of performance categories for which all eligible areas meet or exceed the industry average in urbanized areas with a population of at least 200,000 but not more than 999,999.

‘(B) DATA USED IN FORMULA- The Secretary shall calculate apportionments under this subsection for a fiscal year using data from the national transit database used to calculate apportionments for that fiscal year under this section.

‘(j) Apportionment Formula- The amounts apportioned under subsection (h)(2) shall be apportioned among urbanized areas as follows:

‘(1) 75 percent of the funds shall be apportioned among designated recipients for urbanized areas with a population of 200,000 or more in the ratio that--

‘(A) the number of eligible low-income individuals in each such urbanized area; bears to

‘(B) the number of eligible low-income individuals in all such urbanized areas.

‘(2) 25 percent of the funds shall be apportioned among designated recipients for urbanized areas with a population of less than 200,000 in the ratio that--

‘(A) the number of eligible low-income individuals in each such urbanized area; bears to

‘(B) the number of eligible low-income individuals in all such urbanized areas.’.

SEC. 20028. STATE OF GOOD REPAIR GRANTS.

Section 5337 of title 49, United States Code, is amended to read as follows:

‘Sec. 5337. State of good repair grants

‘(a) Definitions- In this section, the following definitions shall apply:

‘(1) FIXED GUIDEWAY- The term ‘fixed guideway’ means a public transportation facility--

‘(A) using and occupying a separate right-of-way for the exclusive use of public transportation;

‘(B) using rail;

‘(C) using a fixed catenary system;

‘(D) for a passenger ferry system; or

‘(E) for a bus rapid transit system.

‘(2) STATE- The term ‘State’ means the 50 States, the District of Columbia, and Puerto Rico.

‘(3) STATE OF GOOD REPAIR- The term ‘state of good repair’ has the meaning given that term by the Secretary, by rule, under section 5326(b).

‘(4) TRANSIT ASSET MANAGEMENT PLAN- The term ‘transit asset management plan’ means a plan developed by a recipient of funding under this chapter that--

‘(A) includes, at a minimum, capital asset inventories and condition assessments, decision support tools, and investment prioritization; and

‘(B) the recipient certifies that the recipient complies with the rule issued under section 5326(d).

‘(b) General Authority-

‘(1) ELIGIBLE PROJECTS- The Secretary may make grants under this section to assist State and local governmental authorities in financing capital projects to maintain public transportation systems in a state of good repair, including projects to replace and rehabilitate--

‘(A) rolling stock;

‘(B) track;

‘(C) line equipment and structures;

‘(D) signals and communications;

‘(E) power equipment and substations;

‘(F) passenger stations and terminals;

‘(G) security equipment and systems;

‘(H) maintenance facilities and equipment;

‘(I) operational support equipment, including computer hardware and software;

‘(J) development and implementation of a transit asset management plan; and

‘(K) other replacement and rehabilitation projects the Secretary determines appropriate.

‘(2) INCLUSION IN PLAN- A recipient shall include a project carried out under paragraph (1) in the transit asset management plan of the recipient upon completion of the plan.

‘(c) High Intensity Fixed Guideway State of Good Repair Formula-

‘(1) IN GENERAL- Of the amount authorized or made available under section 5338(a)(2)(M), $1,874,763,500 shall be apportioned to recipients in accordance with this subsection.

‘(2) AREA SHARE-

‘(A) IN GENERAL- 50 percent of the amount described in paragraph (1) shall be apportioned for fixed guideway systems in accordance with this paragraph.

‘(B) SHARE- A recipient shall receive an amount equal to the amount described in subparagraph (A), multiplied by the amount the recipient would have received under this section, as in effect for fiscal year 2011, if the amount had been calculated in accordance with section 5336(b)(1) and using the definition of the term ‘fixed guideway’ under subsection (a) of this section, as such sections are in effect on the day after the date of enactment of the Federal Public Transportation Act of 2012, and divided by the total amount apportioned for all areas under this section for fiscal year 2011.

‘(C) RECIPIENT- For purposes of this paragraph, the term ‘recipient’ means an entity that received funding under this section, as in effect for fiscal year 2011.

‘(3) VEHICLE REVENUE MILES AND DIRECTIONAL ROUTE MILES-

‘(A) IN GENERAL- 50 percent of the amount described in paragraph (1) shall be apportioned to recipients in accordance with this paragraph.

‘(B) VEHICLE REVENUE MILES- A recipient in an urbanized area shall receive an amount equal to 60 percent of the amount described in subparagraph (A), multiplied by the number of fixed guideway vehicle revenue miles attributable to the urbanized area, as established by the Secretary, divided by the total number of all fixed guideway vehicle revenue miles attributable to all urbanized areas.

‘(C) DIRECTIONAL ROUTE MILES- A recipient in an urbanized area shall receive an amount equal to 40 percent of the amount described in subparagraph (A), multiplied by the number of fixed guideway directional route miles attributable to the urbanized area, as established by the Secretary, divided by the total number of all fixed guideway directional route miles attributable to all urbanized areas.

‘(4) LIMITATION-

‘(A) IN GENERAL- Except as provided in subparagraph (B), the share of the total amount apportioned under this section that is apportioned to an area under this subsection shall not decrease by more than 0.25 percentage points compared to the share apportioned to the area under this subsection in the previous fiscal year.

‘(B) SPECIAL RULE FOR FISCAL YEAR 2012- In fiscal year 2012, the share of the total amount apportioned under this section that is apportioned to an area under this subsection shall not decrease by more than 0.25 percentage points compared to the share that would have been apportioned to the area under this section, as in effect for fiscal year 2011, if the share had been calculated using the definition of the term ‘fixed guideway’ under subsection (a) of this section, as in effect on the day after the date of enactment of the Federal Public Transportation Act of 2012.

‘(5) USE OF FUNDS- Amounts made available under this subsection shall be available for the exclusive use of fixed guideway projects.

‘(6) RECEIVING APPORTIONMENT-

‘(A) IN GENERAL- Except as provided in subparagraph (B), for an area with a fixed guideway system, the amounts provided under this section shall be apportioned to the designated recipient for the urbanized area in which the system operates.

‘(B) EXCEPTION- An area described in the amendment made by section 3028(a) of the Transportation Equity Act for the 21st Century (Public Law 105-178; 112 Stat. 366) shall receive an individual apportionment under this subsection.

‘(7) APPORTIONMENT REQUIREMENTS- For purposes of determining the number of fixed guideway vehicle revenue miles or fixed guideway directional route miles attributable to an urbanized area for a fiscal year under this subsection, only segments of fixed guideway systems placed in revenue service not later than 7 years before the first day of the fiscal year shall be deemed to be attributable to an urbanized area.

‘(d) Fixed Guideway State of Good Repair Grant Program-

‘(1) IN GENERAL- The Secretary may make grants under this section to assist State and local governmental authorities in financing fixed guideway capital projects to maintain public transportation systems in a state of good repair.

‘(2) COMPETITIVE PROCESS- The Secretary shall solicit grant applications and make grants for eligible projects on a competitive basis.

‘(3) PRIORITY CONSIDERATION- In making grants under this subsection, the Secretary shall give priority to grant applications received from recipients receiving an amount under this section that is not less than 2 percent less than the amount the recipient would have received under this section, as in effect for fiscal year 2011, if the amount had been calculated using the definition of the term ‘fixed guideway’ under subsection (a) of this section, as in effect on the day after the date of enactment of the Federal Public Transportation Act of 2012.

‘(e) High Intensity Motorbus State of Good Repair-

‘(1) DEFINITION- For purposes of this subsection, the term ‘high intensity motorbus’ means public transportation that is provided on a facility with access for other high-occupancy vehicles.

‘(2) APPORTIONMENT- Of the amount authorized or made available under section 5338(a)(2)(M), $112,500,000 shall be apportioned to urbanized areas for high intensity motorbus state of good repair in accordance with this subsection.

‘(3) VEHICLE REVENUE MILES AND DIRECTIONAL ROUTE MILES-

‘(A) IN GENERAL- $60,000,000 of the amount described in paragraph (2) shall be apportioned to each area in accordance with this paragraph.

‘(B) VEHICLE REVENUE MILES- Each area shall receive an amount equal to 60 percent of the amount described in subparagraph (A), multiplied by the number of high intensity motorbus vehicle revenue miles attributable to the area, as established by the Secretary, divided by the total number of all high intensity motorbus vehicle revenue miles attributable to all areas.

‘(C) DIRECTIONAL ROUTE MILES- Each area shall receive an amount equal to 40 percent of the amount described in subparagraph (A), multiplied by the number of high intensity motorbus directional route miles attributable to the area, as established by the Secretary, divided by the total number of all high intensity motorbus directional route miles attributable to all areas.

‘(4) SPECIAL RULE FOR HIGH INTENSITY MOTORBUS-

‘(A) IN GENERAL- $52,500,000 of the amount described in paragraph (2) shall be apportioned--

‘(i) in accordance with this paragraph; and

‘(ii) among urbanized areas within a State in the same proportion as funds are apportioned within a State under section 5336, except subsection (b), and shall be added to such amounts.

‘(B) TERRITORIES- Of the amount described in subparagraph (A), $500,000 shall be distributed among the territories, as determined by the Secretary.

‘(C) STATES- Of the amount described in subparagraph (A), each State shall receive $1,000,000.

‘(5) USE OF FUNDS- A recipient may transfer any part of the apportionment under this subsection for use under subsection (c).

‘(6) APPORTIONMENT REQUIREMENTS- For purposes of determining the number of high intensity motorbus vehicle revenue miles or high intensity motorbus directional route miles attributable to an urbanized area for a fiscal year under this subsection, only segments of high intensity motorbus systems placed in revenue service not later than 7 years before the first day of the fiscal year shall be deemed to be attributable to an urbanized area.

‘(f) Bus and Bus Facilities State of Good Repair Grant Program-

‘(1) IN GENERAL- The Secretary may make grants under this subsection to assist State and local governmental authorities in financing bus and bus facility capital projects to maintain public transportation systems in a state of good repair.

‘(2) COMPETITIVE PROCESS- The Secretary shall solicit grant applications and make grants for capital projects on a competitive basis.

‘(3) DISTRIBUTION- The Secretary shall ensure that not less than 40 percent of the funds allocated on a competitive basis are distributed to rural areas.

‘(4) PRIORITY CONSIDERATION- In making grants under this subsection, the Secretary shall give priority to recipients providing bus-only or high-intensity motorbus service (as defined in subsection (e)(1)) in a State whose recipients’ total apportionment from section 5338(a) in fiscal year 2012 minus the recipients’ total apportionment from section 5338(a) in fiscal year 2011 does not exceed 90 percent of the average annual amount the recipients in the State received under section 5309(m)(2)(c), as in effect on October 1, 2011, in fiscal years 2006 through 2011.’.

SEC. 20029. AUTHORIZATIONS.

Section 5338 of title 49, United States Code, is amended to read as follows:

‘Sec. 5338. Authorizations

‘(a) Formula Grants-

‘(1) IN GENERAL- There shall be available from the Mass Transit Account of the Highway Trust Fund to carry out sections 5305, 5307, 5308, 5310, 5311, 5312, 5313, 5314, 5315, 5322, 5335, and 5340, subsections (c) and (e) of section 5337, and section 20005(b) of the Federal Public Transportation Act of 2012, $8,360,565,000 for each of fiscal years 2012 and 2013.

‘(2) ALLOCATION OF FUNDS- Of the amounts made available under paragraph (1)--

‘(A) $124,850,000 for each of fiscal years 2012 and 2013 shall be available to carry out section 5305;

‘(B) $20,000,000 for each of fiscal years 2012 and 2013 shall be available to carry out section 20005(b) of the Federal Public Transportation Act of 2012;

‘(C) $4,756,161,500 for each of fiscal years 2012 and 2013 shall be allocated in accordance with section 5336 to provide financial assistance for urbanized areas under section 5307;

‘(D) $65,150,000 for each of fiscal years 2012 and 2013 shall be available to carry out section 5308, of which not less than $8,500,000 shall be used to carry out activities under section 5312;

‘(E) $248,600,000 for each of fiscal years 2012 and 2013 shall be available to provide financial assistance for services for the enhanced mobility of seniors and individuals with disabilities under section 5310;

‘(F) $591,190,000 for each of fiscal years 2012 and 2013 shall be available to provide financial assistance for other than urbanized areas under section 5311, of which not less than $30,000,000 shall be available to carry out section 5311(c)(1) and $20,000,000 shall be available to carry out section 5311(c)(2);

‘(G) $34,000,000 for each of fiscal years 2012 and 2013 shall be available to carry out research, development, demonstration, and deployment projects under section 5312;

‘(H) $6,500,000 for each of fiscal years 2012 and 2013 shall be available to carry out a transit cooperative research program under section 5313;

‘(I) $4,500,000 for each of fiscal years 2012 and 2013 shall be available for technical assistance and standards development under section 5314;

‘(J) $5,000,000 for each of fiscal years 2012 and 2013 shall be available for the National Transit Institute under section 5315;

‘(K) $2,000,000 for each of fiscal years 2012 and 2013 shall be available for workforce development and human resource grants under section 5322;

‘(L) $3,850,000 for each of fiscal years 2012 and 2013 shall be available to carry out section 5335;

‘(M) $1,987,263,500 for each of fiscal years 2012 and 2013 shall be available to carry out subsections (c) and (e) of section 5337; and

‘(N) $511,500,000 for each of fiscal years 2012 and 2013 shall be allocated in accordance with section 5340 to provide financial assistance for urbanized areas under section 5307 and other than urbanized areas under section 5311.

‘(b) Emergency Relief Program- There are authorized to be appropriated such sums as are necessary to carry out section 5306.

‘(c) Capital Investment Grants- There are authorized to be appropriated to carry out section 5309, $1,955,000,000 for each of fiscal years 2012 and 2013, of which not less than $75,000,000 shall be available to carry out section 5337(f).

‘(d) Paul S. Sarbanes Transit in the Parks- There are authorized to be appropriated to carry out section 5320, $26,900,000 for each of fiscal years 2012 and 2013.

‘(e) Fixed Guideway State of Good Repair Grant Program- There are authorized to be appropriated to carry out section 5337(d), $7,463,000 for each of fiscal years 2012 and 2013.

‘(f) Administration-

‘(1) IN GENERAL- There are authorized to be appropriated to carry out section 5334, $108,350,000 for each of fiscal years 2012 and 2013.

‘(2) SECTION 5329- Of the amounts authorized to be appropriated under paragraph (1), not less than $10,000,000 shall be available to carry out section 5329.

‘(3) SECTION 5326- Of the amounts made available under paragraph (2), not less than $1,000,000 shall be available to carry out section 5326.

‘(g) Oversight-

‘(1) IN GENERAL- Of the amounts made available to carry out this chapter for a fiscal year, the Secretary may use not more than the following amounts for the activities described in paragraph (2):

‘(A) 0.5 percent of amounts made available to carry out section 5305.

‘(B) 0.75 percent of amounts made available to carry out section 5307.

‘(C) 1 percent of amounts made available to carry out section 5309.

‘(D) 1 percent of amounts made available to carry out section 601 of the Passenger Rail Investment and Improvement Act of 2008 (Public Law 110-432; 126 Stat. 4968).

‘(E) 0.5 percent of amounts made available to carry out section 5310.

‘(F) 0.5 percent of amounts made available to carry out section 5311.

‘(G) 0.5 percent of amounts made available to carry out section 5320.

‘(H) 0.75 percent of amounts made available to carry out section 5337(c).

‘(2) ACTIVITIES- The activities described in this paragraph are as follows:

‘(A) Activities to oversee the construction of a major capital project.

‘(B) Activities to review and audit the safety and security, procurement, management, and financial compliance of a recipient or subrecipient of funds under this chapter.

‘(C) Activities to provide technical assistance generally, and to provide technical assistance to correct deficiencies identified in compliance reviews and audits carried out under this section.

‘(3) GOVERNMENT SHARE OF COSTS- The Government shall pay the entire cost of carrying out a contract under this subsection.

‘(4) AVAILABILITY OF CERTAIN FUNDS- Funds made available under paragraph (1)(C) shall be made available to the Secretary before allocating the funds appropriated to carry out any project under a full funding grant agreement.

‘(h) Grants as Contractual Obligations-

‘(1) GRANTS FINANCED FROM HIGHWAY TRUST FUND- A grant or contract that is approved by the Secretary and financed with amounts made available from the Mass Transit Account of the Highway Trust Fund pursuant to this section is a contractual obligation of the Government to pay the Government share of the cost of the project.

‘(2) GRANTS FINANCED FROM GENERAL FUND- A grant or contract that is approved by the Secretary and financed with amounts appropriated in advance from the General Fund of the Treasury pursuant to this section is a contractual obligation of the Government to pay the Government share of the cost of the project only to the extent that amounts are appropriated for such purpose by an Act of Congress.

‘(i) Availability of Amounts- Amounts made available by or appropriated under this section shall remain available until expended.’.

SEC. 20030. APPORTIONMENTS BASED ON GROWING STATES AND HIGH DENSITY STATES FORMULA FACTORS.

Section 5340 of title 49, United States Code, is amended to read as follows:

‘Sec. 5340. Apportionments based on growing States and high density States formula factors

‘(a) Definition- In this section, the term ‘State’ shall mean each of the 50 States of the United States.

‘(b) Allocation- Of the amounts made available for each fiscal year under section 5338(a)(2)(N), the Secretary shall apportion--

‘(1) 50 percent to States and urbanized areas in accordance with subsection (c); and

‘(2) 50 percent to States and urbanized areas in accordance with subsection (d).

‘(c) Growing State Apportionments-

‘(1) APPORTIONMENT AMONG STATES- The amounts apportioned under subsection (b)(1) shall provide each State with an amount equal to the total amount apportioned multiplied by a ratio equal to the population of that State forecast for the year that is 15 years after the most recent decennial census, divided by the total population of all States forecast for the year that is 15 years after the most recent decennial census. Such forecast shall be based on the population trend for each State between the most recent decennial census and the most recent estimate of population made by the Secretary of Commerce.

‘(2) APPORTIONMENTS BETWEEN URBANIZED AREAS AND OTHER THAN URBANIZED AREAS IN EACH STATE-

‘(A) IN GENERAL- The Secretary shall apportion amounts to each State under paragraph (1) so that urbanized areas in that State receive an amount equal to the amount apportioned to that State multiplied by a ratio equal to the sum of the forecast population of all urbanized areas in that State divided by the total forecast population of that State. In making the apportionment under this subparagraph, the Secretary shall utilize any available forecasts made by the State. If no forecasts are available, the Secretary shall utilize data on urbanized areas and total population from the most recent decennial census.

‘(B) REMAINING AMOUNTS- Amounts remaining for each State after apportionment under subparagraph (A) shall be apportioned to that State and added to the amount made available for grants under section 5311.

‘(3) APPORTIONMENTS AMONG URBANIZED AREAS IN EACH STATE- The Secretary shall apportion amounts made available to urbanized areas in each State under paragraph (2)(A) so that each urbanized area receives an amount equal to the amount apportioned under paragraph (2)(A) multiplied by a ratio equal to the population of each urbanized area divided by the sum of populations of all urbanized areas in the State. Amounts apportioned to each urbanized area shall be added to amounts apportioned to that urbanized area under section 5336, and made available for grants under section 5307.

‘(d) High Density State Apportionments- Amounts to be apportioned under subsection (b)(2) shall be apportioned as follows:

‘(1) ELIGIBLE STATES- The Secretary shall designate as eligible for an apportionment under this subsection all States with a population density in excess of 370 persons per square mile.

‘(2) STATE URBANIZED LAND FACTOR- For each State qualifying for an apportionment under paragraph (1), the Secretary shall calculate an amount equal to--

‘(A) the total land area of the State (in square miles); multiplied by

‘(B) 370; multiplied by

‘(C)(i) the population of the State in urbanized areas; divided by

‘(ii) the total population of the State.

‘(3) STATE APPORTIONMENT FACTOR- For each State qualifying for an apportionment under paragraph (1), the Secretary shall calculate an amount equal to the difference between the total population of the State less the amount calculated in paragraph (2).

‘(4) STATE APPORTIONMENT- Each State qualifying for an apportionment under paragraph (1) shall receive an amount equal to the amount to be apportioned under this subsection multiplied by the amount calculated for the State under paragraph (3) divided by the sum of the amounts calculated under paragraph (3) for all States qualifying for an apportionment under paragraph (1).

‘(5) APPORTIONMENTS AMONG URBANIZED AREAS IN EACH STATE- The Secretary shall apportion amounts made available to each State under paragraph (4) so that each urbanized area receives an amount equal to the amount apportioned under paragraph (4) multiplied by a ratio equal to the population of