< Back to S. 1072 (108th Congress, 2003–2004)

Text of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004

This bill was introduced in a previous session of Congress and was passed by the Senate on February 12, 2004 but was never passed by the House. The text of the bill below is as of Feb 26, 2004 (Public Print).

Source: GPO

S 1072 ES/PP

108th CONGRESS

2d Session

S. 1072


AN ACT

To authorize funds for Frederal-aid highways, highway safety programs, and transit 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; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. General definitions.

      Sec. 3. Definitions for title 23.

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Funding

      Sec. 1101. Authorization of appropriations.

      Sec. 1102. Obligation ceiling.

      Sec. 1103. Apportionments.

      Sec. 1104. Equity bonus programs.

      Sec. 1105. Revenue aligned budget authority.

Subtitle B--New Programs

      Sec. 1201. Infrastructure performance and maintenance program.

      Sec. 1202. Future of surface transportation system.

      Sec. 1203. Freight transportation gateways; freight intermodal connections.

      Sec. 1204. Construction of ferry boats and ferry terminal and maintenance facilities; coordination of ferry construction and maintenance.

      Sec. 1205. Designation of Daniel Patrick Moynihan Interstate Highway.

      Sec. 1206. State-by-State comparison of highway construction costs.

Subtitle C--Finance

      Sec. 1301. Federal share.

      Sec. 1302. Transfer of highway and transit funds.

      Sec. 1303. Transportation Infrastructure Finance and Innovation Act Amendments.

      Sec. 1304. Facilitation of international registration plans and international fuel tax agreements.

      Sec. 1305. National Commission on Future Revenue Sources to Support the Highway Trust Fund and Finance the Needs of the Surface Transportation System.

      Sec. 1306. State infrastructure banks.

      Sec. 1307. Public-private partnerships pilot program.

      Sec. 1308. Wagering.

Subtitle D--Safety

      Sec. 1401. Highway safety improvement program.

      Sec. 1402. Operation lifesaver.

      Sec. 1403. License suspension.

      Sec. 1404. Bus axle weight exemption.

      Sec. 1405. Safe routes to schools program.

      Sec. 1406. Purchases of equipment.

      Sec. 1407. Workzone safety.

      Sec. 1408. Worker injury prevention and free flow of vehicular traffic.

      Sec. 1409. Identity authentication standards.

      Sec. 1410. Open container requirements.

Subtitle E--Environmental Planning and Review

Chapter 1--Transportation Planning

      Sec. 1501. Integration of natural resource concerns into State and metropolitan transportation planning.

      Sec. 1502. Consultation between transportation agencies and resource agencies in transportation planning.

      Sec. 1503. Integration of natural resource concerns into transportation project planning.

      Sec. 1504. Public involvement in transportation planning and projects.

      Sec. 1505. Project mitigation.

Chapter 2--Transportation Project Development Process

      Sec. 1511. Transportation project development process.

      Sec. 1512. Assumption of responsibility for categorical exclusions.

      Sec. 1513. Surface transportation project delivery pilot program.

      Sec. 1514. Parks, recreation areas, wildlife and waterfowl refuges, and historic sites.

      Sec. 1515. Regulations.

Chapter 3--Miscellaneous

      Sec. 1521. Critical real property acquisition.

      Sec. 1522. Planning capacity building initiative.

Subtitle F--Environment

      Sec. 1601. Environmental restoration and pollution abatement; control of invasive plant species and establishment of native species.

      Sec. 1602. National scenic byways program.

      Sec. 1603. Recreational trails program.

      Sec. 1604. Exemption of Interstate System.

      Sec. 1605. Standards.

      Sec. 1606. Use of high occupancy vehicle lanes.

      Sec. 1607. Bicycle transportation and pedestrian walkways.

      Sec. 1608. Idling reduction facilities in Interstate rights-of-way.

      Sec. 1609. Toll programs.

      Sec. 1610. Federal reference method.

      Sec. 1611. Addition of particulate matter areas to CMAQ.

      Sec. 1612. Addition to CMAQ-eligible projects.

      Sec. 1613. Improved interagency consultation.

      Sec. 1614. Evaluation and assessment of CMAQ projects.

      Sec. 1615. Synchronized planning and conformity timelines, requirements, and horizon.

      Sec. 1616. Transition to new air quality standards.

      Sec. 1617. Reduced barriers to air quality improvements.

      Sec. 1618. Air quality monitoring data influenced by exceptional events.

      Sec. 1619. Conforming amendments.

      Sec. 1620. Highway stormwater discharge mitigation program.

      Sec. 1621. Exemption from certain hazardous materials transportation requirements.

      Sec. 1622. Funds for rebuilding fish stocks.

Subtitle G--Operations

      Sec. 1701. Transportation systems management and operations.

      Sec. 1702. Real-time system management information program.

      Sec. 1703. Contracting for engineering and design services.

      Sec. 1704. Off-duty time for drivers of commercial vehicles.

      Sec. 1705. Designation of transportation management areas.

Subtitle H--Federal-Aid Stewardship

      Sec. 1801. Future Interstate System routes.

      Sec. 1802. Stewardship and oversight.

      Sec. 1803. Design-build contracting.

      Sec. 1804. Program efficiencies--finance.

      Sec. 1805. Set-asides for interstate discretionary projects.

      Sec. 1806. Federal lands highways program.

      Sec. 1807. Highway bridge program.

      Sec. 1808. Appalachian development highway system.

      Sec. 1809. Multistate corridor program.

      Sec. 1810. Border planning, operations, technology, and capacity program.

      Sec. 1811. Puerto Rico highway program.

      Sec. 1812. National historic covered bridge preservation.

      Sec. 1813. Transportation and community and system preservation program.

      Sec. 1814. Parking pilot programs.

      Sec. 1815. Interstate oasis program.

      Sec. 1816. Tribal-State road maintenance agreements.

      Sec. 1817. National forest system roads.

      Sec. 1818. Territorial highway program.

      Sec. 1819. Magnetic levitation transportation technology deployment program.

      Sec. 1820. Donations and credits.

      Sec. 1821. Disadvantaged business enterprises.

      Sec. 1822. Emergency relief.

      Sec. 1823. Priority for pedestrian and bicycle facility enhancement projects.

      Sec. 1824. The Delta Regional Authority.

      Sec. 1825. Multistate international corridor development program.

      Sec. 1826. Authorization of contract authority for States with Indian Reservations.

Subtitle I--Technical Corrections

      Sec. 1901. Repeal or update of obsolete text.

      Sec. 1902. Clarification of date.

      Sec. 1903. Inclusion of requirements for signs identifying funding sources in title 23.

      Sec. 1904. Inclusion of Buy America requirements in title 23.

      Sec. 1905. Technical amendments to nondiscrimination section.

TITLE II--TRANSPORTATION RESEARCH

Subtitle A--Funding

      Sec. 2001. Authorization of appropriations.

      Sec. 2002. Obligation ceiling.

      Sec. 2003. Notice.

Subtitle B--Research and Technology

      Sec. 2101. Research and technology program.

      Sec. 2102. Study of data collection and statistical analysis efforts.

      Sec. 2103. Centers for surface transportation excellence.

      Sec. 2104. Motorcycle crash causation study grants.

      Sec. 2105. Transportation technology innovation and demonstration program

Subtitle C--Intelligent Transportation System Research

      Sec. 2201. Intelligent transportation system research and technical assistance program.

TITLE III--PUBLIC TRANSPORTATION

      Sec. 3001. Short title.

      Sec. 3002. Amendments to title 49, United States Code; updated terminology.

      Sec. 3003. Policies, findings, and purposes.

      Sec. 3004. Definitions.

      Sec. 3005. Metropolitan transportation planning.

      Sec. 3006. Statewide transportation planning.

      Sec. 3007. Transportation management areas.

      Sec. 3008. Private enterprise participation.

      Sec. 3009. Urbanized area formula grants.

      Sec. 3010. Planning programs.

      Sec. 3011. Capital investment program.

      Sec. 3012. New freedom for elderly persons and persons with disabilities.

      Sec. 3013. Formula grants for other than urbanized areas.

      Sec. 3014. Research, development, demonstration, and deployment projects.

      Sec. 3015. Transit cooperative research program.

      Sec. 3016. National research programs.

      Sec. 3017. National transit institute.

      Sec. 3018. Bus testing facility.

      Sec. 3019. Bicycle facilities.

      Sec. 3020. Suspended light rail technology pilot project.

      Sec. 3021. Crime prevention and security.

      Sec. 3022. General provisions on assistance.

      Sec. 3023. Special provisions for capital projects.

      Sec. 3024. Contract requirements.

      Sec. 3025. Project management oversight and review.

      Sec. 3026. Project review.

      Sec. 3027. Investigations of safety and security risk.

      Sec. 3028. State safety oversight.

      Sec. 3029. Sensitive security information.

      Sec. 3030. Terrorist attacks and other acts of violence against public transportation systems.

      Sec. 3031. Controlled substances and alcohol misuse testing.

      Sec. 3032. Employee protective arrangements.

      Sec. 3033. Administrative procedures.

      Sec. 3034. Reports and audits.

      Sec. 3035. Apportionments of appropriations for formula grants.

      Sec. 3036. Apportionments for fixed guideway modernization.

      Sec. 3037. Authorizations.

      Sec. 3038. Apportionments based on growing States formula factors.

      Sec. 3039. Job access and reverse commute grants.

      Sec. 3040. Over-the-road bus accessibility program.

      Sec. 3041. Alternative transportation in parks and public lands.

      Sec. 3042. Obligation ceiling.

      Sec. 3043. Adjustments for the Surface Transportation Extension Act of 2003.

      Sec. 3044. Disadvantaged business enterprise.

      Sec. 3045. Intermodal passenger facilities.

TITLE IV--SURFACE TRANSPORTATION SAFETY

      Sec. 4001. Short title.

Subtitle A--Highway Safety

Part I--Highway Safety Grant Program

      Sec. 4101. Short title; amendment of title 23, United States Code.

      Sec. 4102. Authorization of appropriations.

      Sec. 4103. Highway safety programs.

      Sec. 4104. Highway safety research and outreach programs.

      Sec. 4105. National Highway Safety Advisory Committee technical correction.

      Sec. 4106. Occupant protection grants.

      Sec. 4107. School bus driver training.

      Sec. 4108. Emergency medical services.

      Sec. 4109. Repeal of authority for alcohol traffic safety programs.

      Sec. 4110. Impaired driving program.

      Sec. 4111. State traffic safety information system improvements.

      Sec. 4112. NHTSA accountability.

Part II--Specific Vehicle Safety-Related Rulings

      Sec. 4151. Amendment of title 49, United States Code.

      Sec. 4152. Vehicle crash ejection prevention.

      Sec. 4153. Vehicle backover avoidance technology study.

      Sec. 4154. Vehicle backover data collection.

      Sec. 4155. Aggressivity and incompatibility reduction standard.

      Sec. 4156. Improved crashworthiness.

      Sec. 4157. 15-passenger vans.

      Sec. 4158. Additional safety performance criteria for tires.

      Sec. 4159. Safety belt use reminders.

      Sec. 4160. Missed deadlines reports.

      Sec. 4161. Grants for improving child passenger safety programs.

      Sec. 4162. Authorization of appropriations.

Part III--Miscellaneous Provisions

      Sec. 4171. Driver licensing and education.

      Sec. 4172. Amendment of Automobile Information Disclosure Act.

      Sec. 4173. Child safety.

      Sec. 4174. Safe intersections.

      Sec. 4175. Study on increased speed limits.

Subtitle B--Motor Carrier Safety and Unified Carrier Registration

Part I--Administrative Matters

      Sec. 4201. Short title; amendment of title 49, United States Code.

      Sec. 4202. Required completion of overdue reports, studies, and rulemakings.

      Sec. 4203. Contract authority.

Part II--Motor Carrier Safety

      Sec. 4221. Minimum guarantee.

      Sec. 4222. Authorization of appropriations.

      Sec. 4223. Motor carrier safety grants.

      Sec. 4224. CDL working group.

      Sec. 4225. CDL learner’s permit program.

      Sec. 4226. Hobbs Act.

      Sec. 4227. Penalty for denial of access to records.

      Sec. 4228. Medical program.

      Sec. 4229. Operation of commercial motor vehicles by individuals who use insulin to treat diabetes mellitus.

      Sec. 4230. Financial responsibility for private motor carriers.

      Sec. 4231. Increased penalties for out-of-service violations and false records.

      Sec. 4232. Elimination of commodity and service exemptions.

      Sec. 4233. Intrastate operations of interstate motor carriers.

      Sec. 4234. Authority to stop commercial motor vehicles.

      Sec. 4235. Revocation of operating authority.

      Sec. 4236. Pattern of safety violations by motor carrier management.

      Sec. 4237. Motor carrier research and technology program.

      Sec. 4238. Review of commercial zone exemption provision.

      Sec. 4239. International cooperation.

      Sec. 4240. Performance and registration information system management.

      Sec. 4241. Commercial vehicle information systems and networks deployment.

      Sec. 4242. Outreach and education.

      Sec. 4243. Operation of restricted property-carrying units on national highway system.

      Sec. 4244. Operation of longer combination vehicles on national highway system.

      Sec. 4245. Application of safety standards to certain foreign motor carriers.

      Sec. 4246. Background checks for Mexican and Canadian drivers hauling hazardous materials.

      Sec. 4247. Exemption of drivers of utility service vehicles.

      Sec. 4248. Operation of commercial motor vehicles transporting agricultural commodities and farm supplies.

      Sec. 4249. Safety performance history screening.

      Sec. 4250. Compliance review audit.

Part III--Unified Carrier Registration

      Sec. 4261. Short title.

      Sec. 4262. Relationship to other laws.

      Sec. 4263. Inclusion of motor private and exempt carriers.

      Sec. 4264. Unified carrier registration system.

      Sec. 4265. Registration of motor carriers by States.

      Sec. 4266. Identification of vehicles.

      Sec. 4267. Use of UCR agreement revenues as matching funds.

      Sec. 4268. Clerical amendments.

Subtitle C--Household Goods Movers

      Sec. 4301. Short title; amendment of title 49, United States Code.

      Sec. 4302. Findings; sense of Congress.

      Sec. 4303. Definitions.

      Sec. 4304. Payment of rates.

      Sec. 4305. Household goods carrier operations.

      Sec. 4306. Liability of carriers under receipts and bills of lading.

      Sec. 4307. Dispute settlement for shipments of household goods.

      Sec. 4308. Enforcement of regulations related to transportation of household goods.

      Sec. 4309. Working group for development of practices and procedures to enhance Federal-State relations.

      Sec. 4310. Consumer handbook on DOT website.

      Sec. 4311. Information about household goods transportation on carriers’ websites.

      Sec. 4312. Consumer complaints.

      Sec. 4313. Review of liability of carriers.

      Sec. 4314. Civil penalties relating to household goods brokers.

      Sec. 4315. Civil and criminal penalty for failing to give up possession of household goods.

      Sec. 4316. Progress report.

      Sec. 4317. Additional registration requirements for motor carriers of household goods.

Subtitle D--Hazardous Materials Transportation Safety and Security

      Sec. 4401. Short title.

      Sec. 4402. Amendment of title 49, United States Code.

Part I--General Authorities on Transportation of Hazardous Materials

      Sec. 4421. Purpose.

      Sec. 4422. Definitions.

      Sec. 4423. General regulatory authority.

      Sec. 4424. Limitation on issuance of hazmat licenses.

      Sec. 4425. Representation and tampering.

      Sec. 4426. Transporting certain highly radioactive material.

      Sec. 4427. Hazmat employee training requirements and grants.

      Sec. 4428. Registration.

      Sec. 4429. Shipping papers and disclosure.

      Sec. 4430. Rail tank cars.

      Sec. 4431. Highway routing of hazardous material.

      Sec. 4432. Unsatisfactory safety ratings.

      Sec. 4433. Air transportation of ionizing radiation material.

      Sec. 4434. Training curriculum for the public sector.

      Sec. 4435. Planning and training grants; emergency preparedness fund.

      Sec. 4436. Special permits and exclusions.

      Sec. 4437. Uniform forms and procedures.

      Sec. 4438. International uniformity of standards and requirements.

      Sec. 4439. Hazardous materials transportation safety and security.

      Sec. 4440. Enforcement.

      Sec. 4441. Civil penalties.

      Sec. 4442. Criminal penalties.

      Sec. 4443. Preemption.

      Sec. 4444. Relationship to other laws.

      Sec. 4445. Judicial review.

      Sec. 4446. Authorization of appropriations.

      Sec. 4447. Additional civil and criminal penalties.

Part II--Other Matters

      Sec. 4461. Administrative authority for research and special programs administration.

      Sec. 4462. Mailability of hazardous materials.

      Sec. 4463. Criminal matters.

      Sec. 4464. Cargo inspection program.

      Sec. 4465. Information on hazmat registrations.

      Sec. 4466. Report on applying hazardous materials regulations to persons who reject hazardous materials.

Part III--Sanitary Food Transportation

      Sec. 4481. Short title.

      Sec. 4482. Responsibilities of the Secretary of Health and Human Services.

      Sec. 4483. Department of Transportation requirements.

      Sec. 4484. Effective date.

Subtitle E--Recreational Boating Safety Programs

      Sec. 4501. Short title.

Part I--Federal Aid in Sport Fish Restoration Act Amendments

      Sec. 4521. Amendment of Federal aid in Fish Restoration Act.

      Sec. 4522. Authorization of appropriations.

      Sec. 4523. Division of annual appropriations.

      Sec. 4524. Maintenance of projects.

      Sec. 4525. Boating infrastructure.

      Sec. 4526. Requirements and restrictions concerning use of amounts for expenses for administration.

      Sec. 4527. Payments of funds to and cooperation with Puerto Rico, the District of Columbia, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Virgin Islands.

      Sec. 4528. Multistate conservation grant program.

Part II--Clean Vessel Act Amendments

      Sec. 4541. Grant program.

Part III--Recreational Boating Safety Program Amendments

      Sec. 4561. State matching funds requirement.

      Sec. 4562. Availability of allocations.

      Sec. 4563. Authorization of appropriations for State recreational boating safety programs.

      Sec. 4564. Maintenance of effort for State recreational boating safety programs.

Part IV--Miscellaneous

      Sec. 4581. Technical correction to Homeland Security Act.

Subtitle F--Rail Transportation

Part I--Amtrak

      Sec. 4601. Authorization of appropriations.

      Sec. 4602. Establishment of Build America Corporation.

      Sec. 4603. Federal bonds for transportation infrastructure.

Part II--Railroad Track Modernization

      Sec. 4631. Short title.

      Sec. 4632. Capital grants for railroad track.

      Sec. 4633. Regulations.

      Sec. 4634. Study of grant-funded projects.

      Sec. 4635. Authorization of appropriations.

Part III--Other Rail Transportation-Related Provisions

      Sec. 4661. Capital grants for rail line relocation projects.

      Sec. 4662. Use of congestion mitigation and air quality improvement funds for Boston to Portland passenger rail service.

TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

      Sec. 5000. Short title; amendment of 1986 code.

Subtitle A--Trust Fund Reauthorization

      Sec. 5001. Extension of Highway Trust Fund and Aquatic Resources Trust Fund expenditure authority and related taxes.

      Sec. 5002. Full accounting of funds received by the Highway Trust Fund.

      Sec. 5003. Modification of adjustments of apportionments.

Subtitle B--Volumetric Ethanol Excise Tax Credit

      Sec. 5101. Short title.

      Sec. 5102. Alcohol and biodiesel excise tax credit and extension of alcohol fuels income tax credit.

      Sec. 5103. Biodiesel income tax credit.

Subtitle C--Fuel Fraud Prevention

      Sec. 5200. Short title.

Part I--Aviation Jet Fuel

      Sec. 5211. Taxation of aviation-grade kerosene.

      Sec. 5212. Transfer of certain amounts from the Airport and Airway Trust Fund to the Highway Trust Fund to reflect highway use of jet fuel.

Part II--Dyed Fuel

      Sec. 5221. Dye injection equipment.

      Sec. 5222. Elimination of administrative review for taxable use of dyed fuel.

      Sec. 5223. Penalty on untaxed chemically altered dyed fuel mixtures.

      Sec. 5224. Termination of dyed diesel use by intercity buses.

Part III--Modification of Inspection of Records Provisions

      Sec. 5231. Authority to inspect on-site records.

      Sec. 5232. Assessable penalty for refusal of entry.

Part IV--Registration and Reporting Requirements

      Sec. 5241. Registration of pipeline or vessel operators required for exemption of bulk transfers to registered terminals or refineries.

      Sec. 5242. Display of registration.

      Sec. 5243. Registration of persons within foreign trade zones, etc.

      Sec. 5244. Penalties for failure to register and failure to report.

      Sec. 5245. Information reporting for persons claiming certain tax benefits.

      Sec. 5246. Electronic reporting.

Part V--Imports

      Sec. 5251. Tax at point of entry where importer not registered.

      Sec. 5252. Reconciliation of on-loaded cargo to entered cargo.

Part VI--Miscellaneous Provisions

      Sec. 5261. Tax on sale of diesel fuel whether suitable for use or not in a diesel-powered vehicle or train.

      Sec. 5262. Modification of ultimate vendor refund claims with respect to farming.

      Sec. 5263. Taxable fuel refunds for certain ultimate vendors.

      Sec. 5264. Two-party exchanges.

      Sec. 5265. Modifications of tax on use of certain vehicles.

      Sec. 5266. Dedication of revenues from certain penalties to the Highway Trust Fund.

      Sec. 5267. Nonapplication of export exemption to delivery of fuel to motor vehicles removed from United States.

Part VII--Total Accountability

      Sec. 5271. Total accountability.

      Sec. 5272. Excise tax reporting.

      Sec. 5273. Information reporting.

Subtitle D--Definition of Highway Vehicle

      Sec. 5301. Exemption from certain excise taxes for mobile machinery.

      Sec. 5302. Modification of definition of off-highway vehicle.

Subtitle E--Excise Tax Reform and Simplification

Part I--Highway Excise Taxes

      Sec. 5401. Dedication of gas guzzler tax to Highway Trust Fund.

      Sec. 5402. Repeal certain excise taxes on rail diesel fuel and inland waterway barge fuels.

Part II--Aquatic Excise Taxes

      Sec. 5411. Elimination of Aquatic Resources Trust Fund and transformation of Sport Fish Restoration Account.

      Sec. 5412. Exemption of LED devices from sonar devices suitable for finding fish.

      Sec. 5413. Repeal of harbor maintenance tax on exports.

      Sec. 5414. Cap on excise tax on certain fishing equipment.

      Sec. 5415. Reduction in rate of tax on portable aerated bait containers.

Part III--Aerial Excise Taxes

      Sec. 5421. Clarification of excise tax exemptions for agricultural aerial applicators and exemption for fixed-wing aircraft engaged in forestry operations.

      Sec. 5422. Modification of rural airport definition.

      Sec. 5423. Exemption from ticket taxes for transportation provided by seaplanes.

      Sec. 5424. Certain sightseeing flights exempt from taxes on air transportation.

Part IV--Alcoholic Beverage Excise Taxes

      Sec. 5431. Repeal of special occupational taxes on producers and marketers of alcoholic beverages.

      Sec. 5432. Suspension of limitation on rate of rum excise tax cover over to Puerto Rico and Virgin Islands.

Part V--Sport Excise Taxes

      Sec. 5441. Custom gunsmiths.

      Sec. 5442. Modified taxation of imported archery products.

      Sec. 5443. Treatment of tribal governments for purposes of Federal wagering excise and occupational taxes.

Part VI--Other Provisions

      Sec. 5451. Income tax credit for distilled spirits wholesalers and for distilled spirits in control State bailment warehouses for costs of carrying Federal excise taxes on bottled distilled spirits.

      Sec. 5452. Credit for taxpayers owning commercial power takeoff vehicles.

      Sec. 5453. Credit for auxiliary power units installed on diesel-powered trucks.

Subtitle F--Miscellaneous Provisions

      Sec. 5501. Motor Fuel Tax Enforcement Advisory Commission.

      Sec. 5502. National Surface Transportation Infrastructure Financing Commission.

      Sec. 5503. Treasury study of fuel tax compliance and interagency cooperation.

      Sec. 5504. Expansion of Highway Trust Fund expenditure purposes to include funding for studies of supplemental or alternative financing for the Highway Trust Fund.

      Sec. 5505. Treasury study of highway fuels used by trucks for non-transportation purposes.

      Sec. 5506. Delta regional transportation plan.

      Sec. 5507. Treatment of employer-provided transit and van pooling benefits.

      Sec. 5508. Study of incentives for production of biodiesel.

Subtitle G--Revenue Offsets

Part I--Limitation on Expensing Certain Passengers Automobiles

      Sec. 5601. Expansion of limitation on depreciation of certain passenger automobiles.

Part II--Provisions Designed To Curtail Tax Shelters

      Sec. 5611. Clarification of economic substance doctrine.

      Sec. 5612. Penalty for failing to disclose reportable transaction.

      Sec. 5613. Accuracy-related penalty for listed transactions and other reportable transactions having a significant tax avoidance purpose.

      Sec. 5614. Penalty for understatements attributable to transactions lacking economic substance, etc.

      Sec. 5615. Modifications of substantial understatement penalty for nonreportable transactions.

      Sec. 5616. Tax shelter exception to confidentiality privileges relating to taxpayer communications.

      Sec. 5617. Disclosure of reportable transactions.

      Sec. 5618. Modifications to penalty for failure to register tax shelters.

      Sec. 5619. Modification of penalty for failure to maintain lists of investors.

      Sec. 5620. Modification of actions to enjoin certain conduct related to tax shelters and reportable transactions.

      Sec. 5621. Understatement of taxpayer’s liability by income tax return preparer.

      Sec. 5622. Penalty on failure to report interests in foreign financial accounts.

      Sec. 5623. Frivolous tax submissions.

      Sec. 5624. Regulation of individuals practicing before the Department of Treasury.

      Sec. 5625. Penalty on promoters of tax shelters.

      Sec. 5626. Statute of limitations for taxable years for which required listed transactions not reported.

      Sec. 5627. Denial of deduction for interest on underpayments attributable to nondisclosed reportable and noneconomic substance transactions.

      Sec. 5628. Authorization of appropriations for tax law enforcement.

Part III--Other Corporate Governance Provisions

      Sec. 5631. Affirmation of consolidated return regulation authority.

      Sec. 5632. Declaration by chief executive officer relating to Federal annual corporate income tax return.

      Sec. 5633. Denial of deduction for certain fines, penalties, and other amounts.

      Sec. 5634. Disallowance of deduction for punitive damages.

      Sec. 5635. Increase in criminal monetary penalty limitation for the underpayment or overpayment of tax due to fraud.

      Sec. 5636. Doubling of certain penalties, fines, and interest on underpayments related to certain offshore financial arrangements.

Part IV--Enron-Related Tax Shelter Provisions

      Sec. 5641. Limitation on transfer or importation of built-in losses.

      Sec. 5642. No reduction of basis under section 734 in stock held by partnership in corporate partner.

      Sec. 5643. Repeal of special rules for FASITs.

      Sec. 5644. Expanded disallowance of deduction for interest on convertible debt.

      Sec. 5645. Expanded authority to disallow tax benefits under section 269.

      Sec. 5646. Modification of interaction between subpart F and passive foreign investment company rules.

Part V--Provisions To Discourage Expatriation

      Sec. 5651. Tax treatment of inverted corporate entities.

      Sec. 5652. Imposition of mark-to-market tax on individuals who expatriate.

      Sec. 5653. Excise tax on stock compensation of insiders in inverted corporations.

      Sec. 5654. Reinsurance of United States risks in foreign jurisdictions.

Subtitle H--Additional Revenue Provisions

Part I--Administrative Provisions

      Sec. 5671. Extension of IRS user fees.

      Sec. 5672. Clarification of rules for payment of estimated tax for certain deemed asset sales.

      Sec. 5673. Partial payment of tax liability in installment agreements.

Part II--Financial Instruments

      Sec. 5675. Treatment of stripped interests in bond and preferred stock funds, etc.

      Sec. 5676. Application of earnings stripping rules to partnerships and S corporations.

      Sec. 5677. Recognition of cancellation of indebtedness income realized on satisfaction of debt with partnership interest.

      Sec. 5678. Modification of straddle rules.

      Sec. 5679. Denial of installment sale treatment for all readily tradeable debt.

Part III--Corporations and Partnerships

      Sec. 5680. Modification of treatment of transfers to creditors in divisive reorganizations.

      Sec. 5681. Clarification of definition of nonqualified preferred stock.

      Sec. 5682. Modification of definition of controlled group of corporations

      Sec. 5683. Mandatory basis adjustments in connection with partnership distributions and transfers of partnership interests.

      Sec. 5684. Class lives for utility grading costs.

      Sec. 5685. Consistent amortization of periods for intangibles.

Subtitle I--Tax-Exempt Financing of Highway Projects and Rail-Truck Transfer Facilities

      Sec. 5691. Tax-exempt financing of highway projects and rail-truck transfer facilities.

      Sec. 5692. Addition of vaccines against hepatitis A to list of taxable vaccines.

      Sec. 5693. Addition of vaccines against influenza to list of taxable vaccines.

      Sec. 5694. Extension of amortization of intangibles to sports franchises.

TITLE VI--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET OFFSETS

      Sec. 6101. Sense of the Senate on overall Federal budget.

      Sec. 6102. Discretionary spending categories.

      Sec. 6103. Level of obligation limitations.

TITLE VII--MISCELLANEOUS PROVISIONS

      Sec. 7001. Reimbursement of certain transportation costs incurred by members of the United States Armed Forces on rest and recuperation leave.

TITLE VIII--SOLID WASTE DISPOSAL

      Sec. 8001. Increased use of recovered mineral component in federally funded projects involving procurement of cement or concrete.

      Sec. 8002. Use of granular mine tailings.

SEC. 2. GENERAL DEFINITIONS.

    In this Act:

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

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

SEC. 3. DEFINITIONS FOR TITLE 23.

    Section 101 of title 23, United States Code, is amended by striking subsection (a) and inserting the following:

    ‘(a) DEFINITIONS- In this title:

      ‘(1) APPORTIONMENT- The term ‘apportionment’ includes an unexpended apportionment made under a law enacted before the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004.

      ‘(2) CARPOOL PROJECT-

        ‘(A) IN GENERAL- The term ‘carpool project’ means any project to encourage the use of carpools and vanpools.

        ‘(B) INCLUSIONS- The term ‘carpool project’ includes a project--

          ‘(i) to provide carpooling opportunities to the elderly and individuals with disabilities;

          ‘(ii) to develop and implement a system for locating potential riders and informing the riders of carpool opportunities;

          ‘(iii) to acquire vehicles for carpool use;

          ‘(iv) to designate highway lanes as preferential carpool highway lanes;

          ‘(v) to provide carpool-related traffic control devices; and

          ‘(vi) to designate facilities for use for preferential parking for carpools.

      ‘(3) CONSTRUCTION-

        ‘(A) IN GENERAL- The term ‘construction’ means the supervision, inspection, and actual building of, and incurring of all costs incidental to the construction or reconstruction of a highway, including bond costs and other costs relating to the issuance in accordance with section 122 of bonds or other debt financing instruments and costs incurred by the State in performing Federal-aid project related audits that directly benefit the Federal-aid highway program.

        ‘(B) INCLUSIONS- The term ‘construction’ includes--

          ‘(i) locating, surveying, and mapping (including the establishment of temporary and permanent geodetic markers in accordance with specifications of the National Oceanic and Atmospheric Administration);

          ‘(ii) resurfacing, restoration, and rehabilitation;

          ‘(iii) acquisition of rights-of-way;

          ‘(iv) relocation assistance, acquisition of replacement housing sites, and acquisition and rehabilitation, relocation, and construction of replacement housing;

          ‘(v) elimination of hazards of railway grade crossings;

          ‘(vi) elimination of roadside obstacles;

          ‘(vii) improvements that directly facilitate and control traffic flow, such as--

            ‘(I) grade separation of intersections;

            ‘(II) widening of lanes;

            ‘(III) channelization of traffic;

            ‘(IV) traffic control systems; and

            ‘(V) passenger loading and unloading areas;

          ‘(viii) capital improvements that directly facilitate an effective vehicle weight enforcement program, such as--

            ‘(I) scales (fixed and portable);

            ‘(II) scale pits;

            ‘(III) scale installation; and

            ‘(IV) scale houses;

          ‘(ix) improvements directly relating to securing transportation infrastructures for detection, preparedness, response, and recovery;

          ‘(x) operating costs relating to traffic monitoring, management, and control;

          ‘(xi) operational improvements; and

          ‘(xii) transportation system management and operations.

      ‘(4) COUNTY- The term ‘county’ includes--

        ‘(A) a corresponding unit of government under any other name in a State that does not have county organizations; and

        ‘(B) in those States in which the county government does not have jurisdiction over highways, any local government unit vested with jurisdiction over local highways.

      ‘(5) FEDERAL-AID HIGHWAY-

        ‘(A) IN GENERAL- The term ‘Federal-aid highway’ means a highway eligible for assistance under this chapter.

        ‘(B) EXCLUSIONS- The term ‘Federal-aid highway’ does not include a highway classified as a local road or rural minor collector.

      ‘(6) FEDERAL-AID SYSTEM- The term ‘Federal-aid system’ means any of the Federal-aid highway systems described in section 103.

      ‘(7) FEDERAL LANDS HIGHWAY- The term ‘Federal lands highway’ means--

        ‘(A) a forest highway;

        ‘(B) a recreation road;

        ‘(C) a public Forest Service road;

        ‘(D) a park road;

        ‘(E) a parkway;

        ‘(F) a refuge road;

        ‘(G) an Indian reservation road; and

        ‘(H) a public lands highway.

      ‘(8) FOREST HIGHWAY- The term ‘forest highway’ means a forest road that is--

        ‘(A) under the jurisdiction of, and maintained by, a public authority; and

        ‘(B) is open to public travel.

      ‘(9) FOREST ROAD OR TRAIL-

        ‘(A) IN GENERAL- The term ‘forest road or trail’ means a road or trail wholly or partly within, or adjacent to, and serving National Forest System land that is necessary for the protection, administration, use, and development of the resources of that land.

        ‘(B) INCLUSIONS- The term ‘forest road or trail’ includes--

          ‘(i) a classified forest road;

          ‘(ii) an unclassified forest road;

          ‘(iii) a temporary forest road; and

          ‘(iv) a public forest service road.

      ‘(10) FREIGHT TRANSPORTATION GATEWAY-

        ‘(A) IN GENERAL- The term ‘freight transportation gateway’ means a nationally or regionally significant transportation port of entry or hub for domestic and global trade or military mobilization.

        ‘(B) INCLUSIONS- The term ‘freight transportation gateway’ includes freight intermodal and Strategic Highway Network connections that provide access to and from a port or hub described in subparagraph (A).

      ‘(11) HIGHWAY- The term ‘highway’ includes--

        ‘(A) a road, street, and parkway;

        ‘(B) a right-of-way, bridge, railroad-highway crossing, tunnel, drainage structure, sign, guardrail, and protective structure, in connection with a highway; and

        ‘(C) a portion of any interstate or international bridge or tunnel (including the approaches to the interstate or international bridge or tunnel, and such transportation facilities as may be required by the United States Customs Service and the Bureau of Citizenship and Immigration Services in connection with the operation of an international bridge or tunnel), the cost of which is assumed by a State transportation department.

      ‘(12) HIGHWAY SAFETY IMPROVEMENT PROJECT- The term ‘highway safety improvement project’ means a project that meets the requirements of section 148.

      ‘(13) INDIAN RESERVATION ROAD-

        ‘(A) IN GENERAL- The term ‘Indian reservation road’ means a public road that is located within or provides access to an area described in subparagraph (B) on which or in which reside Indians or Alaskan Natives that, as determined by the Secretary of the Interior, are eligible for services generally available to Indians under Federal laws specifically applicable to Indians.

        ‘(B) AREAS- The areas referred to in subparagraph (A) are--

          ‘(i) an Indian reservation;

          ‘(ii) Indian trust land or restricted Indian land that is not subject to fee title alienation without the approval of the Federal Government; and

          ‘(iii) an Indian or Alaska Native village, group, or community.

      ‘(14) INTERSTATE SYSTEM- The term ‘Interstate System’ means the Dwight D. Eisenhower National System of Interstate and Defense Highways described in section 103(c).

      ‘(15) MAINTENANCE-

        ‘(A) IN GENERAL- The term ‘maintenance’ means the preservation of a highway.

        ‘(B) INCLUSIONS- The term ‘maintenance’ includes the preservation of--

          ‘(i) the surface, shoulders, roadsides, and structures of a highway; and

          ‘(ii) such traffic-control devices as are necessary for safe, secure, and efficient use of a highway.

      ‘(16) MAINTENANCE AREA- The term ‘maintenance area’ means an area that was designated as a nonattainment area, but was later redesignated by the Administrator of the Environmental Protection Agency as an attainment area, under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)).

      ‘(17) NATIONAL FOREST SYSTEM ROAD OR TRAIL- The term ‘National Forest System road or trail’ means a forest road or trail that is under the jurisdiction of the Forest Service.

      ‘(18) NATIONAL HIGHWAY SYSTEM- The term ‘National Highway System’ means the Federal-aid highway system described in section 103(b).

      ‘(19) OPERATING COSTS FOR TRAFFIC MONITORING, MANAGEMENT, AND CONTROL- The term ‘operating costs for traffic monitoring, management, and control’ includes--

        ‘(A) labor costs;

        ‘(B) administrative costs;

        ‘(C) costs of utilities and rent;

        ‘(D) costs incurred by transportation agencies for technology to monitor critical transportation infrastructure for security purposes; and

        ‘(E) other costs associated with transportation systems management and operations and the continuous operation of traffic control, such as--

          ‘(i) an integrated traffic control system;

          ‘(ii) an incident management program; and

          ‘(iii) a traffic control center.

      ‘(20) OPERATIONAL IMPROVEMENT-

        ‘(A) IN GENERAL- The term ‘operational improvement’ means--

          ‘(i) a capital improvement for installation or implementation of--

            ‘(I) a transportation system management and operations program;

            ‘(II) traffic and transportation security surveillance and control equipment;

            ‘(III) a computerized signal system;

            ‘(IV) a motorist information system;

            ‘(V) an integrated traffic control system;

            ‘(VI) an incident management program;

            ‘(VII) equipment and programs for transportation response to manmade and natural disasters; or

            ‘(VIII) a transportation demand management facility, strategy, or program; and

          ‘(ii) such other capital improvements to a public road as the Secretary may designate by regulation.

        ‘(B) EXCLUSIONS- The term ‘operational improvement’ does not include--

          ‘(i) a resurfacing, restorative, or rehabilitative improvement;

          ‘(ii) construction of an additional lane, interchange, or grade separation; or

          ‘(iii) construction of a new facility on a new location.

      ‘(21) PARK ROAD- The term ‘park road’ means a public road (including a bridge built primarily for pedestrian use, but with capacity for use by emergency vehicles) that is located within, or provides access to, an area in the National Park System with title and maintenance responsibilities vested in the United States.

      ‘(22) PARKWAY- The term ‘parkway’ means a parkway authorized by an Act of Congress on land to which title is vested in the United States.

      ‘(23) PROJECT- The term ‘project’ means--

        ‘(A)(i) an undertaking to construct a particular portion of a highway; or

        ‘(ii) if the context so implies, a particular portion of a highway so constructed; and

        ‘(B) any other undertaking eligible for assistance under this title.

      ‘(24) PROJECT AGREEMENT- The term ‘project agreement’ means the formal instrument to be executed by the Secretary and recipient of funds under this title.

      ‘(25) PUBLIC AUTHORITY- The term ‘public authority’ means a Federal, State, county, town, or township, Indian tribe, municipal or other local government or instrumentality with authority to finance, build, operate, or maintain toll or toll-free facilities.

      ‘(26) PUBLIC FOREST SERVICE ROAD- The term ‘public Forest Service road’ means a classified forest road--

        ‘(A) that is open to public travel;

        ‘(B) for which title and maintenance responsibility is vested in the Federal Government; and

        ‘(C) that has been designated a public road by the Forest Service.

      ‘(27) PUBLIC LANDS DEVELOPMENT ROADS AND TRAILS- The term ‘public lands development roads and trails’ means roads and trails that the Secretary of the Interior determines are of primary importance for the development, protection, administration, and use of public lands and resources under the control of the Secretary of the Interior.

      ‘(28) PUBLIC LANDS HIGHWAY- The term ‘public lands highway’ means--

        ‘(A) a forest road that is--

          ‘(i) under the jurisdiction of, and maintained by, a public authority; and

          ‘(ii) open to public travel; and

        ‘(B) any highway through unappropriated or unreserved public land, nontaxable Indian land, or any other Federal reservation (including a main highway through such land or reservation that is on the Federal-aid system) that is--

          ‘(i) under the jurisdiction of, and maintained by, a public authority; and

          ‘(ii) open to public travel.

      ‘(29) PUBLIC ROAD- The term ‘public road’ means any road or street that is--

        ‘(A) under the jurisdiction of, and maintained by, a public authority; and

        ‘(B) open to public travel.

      ‘(30) RECREATIONAL ROAD- The term ‘recreational road’ means a public road--

        ‘(A) that provides access to a museum, lake, reservoir, visitors center, gateway to a major wilderness area, public use area, or recreational or historic site; and

        ‘(B) for which title is vested in the Federal Government.

      ‘(31) REFUGE ROAD- The term ‘refuge road’ means a public road--

        ‘(A) that provides access to or within a unit of the National Wildlife Refuge System or a national fish hatchery; and

        ‘(B) for which title and maintenance responsibility is vested in the United States Government.

      ‘(32) RURAL AREA- The term ‘rural area’ means an area of a State that is not included in an urban area.

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

      ‘(34) STATE- The term ‘State’ means--

        ‘(A) a State;

        ‘(B) the District of Columbia; and

        ‘(C) the Commonwealth of Puerto Rico.

      ‘(35) STATE FUNDS- The term ‘State funds’ includes funds that are--

        ‘(A) raised under the authority of the State (or any political or other subdivision of a State); and

        ‘(B) made available for expenditure under the direct control of the State transportation department.

      ‘(36) STATE TRANSPORTATION DEPARTMENT- The term ‘State transportation department’ means the department, agency, commission, board, or official of any State charged by the laws of the State with the responsibility for highway construction.

      ‘(37) TERRITORIAL HIGHWAY SYSTEM- The term ‘territorial highway system’ means the system of arterial highways, collector roads, and necessary interisland connectors in American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the United States Virgin Islands that have been designated by the appropriate Governor or chief executive officer of a territory, and approved by the Secretary, in accordance with section 215.

      ‘(38) TRANSPORTATION ENHANCEMENT ACTIVITY- The term ‘transportation enhancement activity’ means, with respect to any project or the area to be served by the project, any of the following activities as the activities relate 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 (including historic battlefields).

        ‘(D) Scenic or historic highway programs (including the provision of tourist and welcome center facilities).

        ‘(E) Landscaping and other scenic beautification.

        ‘(F) Historic preservation.

        ‘(G) Rehabilitation and operation of historic transportation buildings, structures, or facilities (including historic railroad facilities and canals).

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

        ‘(I) Control and removal of outdoor advertising.

        ‘(J) Archaeological planning and research.

        ‘(K) Environmental mitigation--

          ‘(i) to address water pollution due to highway runoff; or

          ‘(ii) reduce vehicle-caused wildlife mortality while maintaining habitat connectivity.

        ‘(L) Establishment of transportation museums.

      ‘(39) TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS-

        ‘(A) IN GENERAL- The term ‘transportation systems management and operations’ means an integrated program 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) regional operations collaboration and coordination activities between transportation and public safety agencies; and

          ‘(ii) improvements to the transportation system such as traffic detection and surveillance, arterial management, freeway management, demand management, work zone management, emergency management, electronic toll collection, automated enforcement, traffic incident management, roadway weather management, traveler information services, commercial vehicle operations, traffic control, freight management, and coordination of highway, rail, transit, bicycle, and pedestrian operations.

      ‘(40) URBAN AREA- The term ‘urban area’ means--

        ‘(A) an urbanized area (or, in the case of an urbanized area encompassing more than 1 State, the portion of the urbanized area in each State); and

        ‘(B) an urban place designated by the Bureau of the Census that--

          ‘(i) has a population of 5,000 or more;

          ‘(ii) is not located within any urbanized area; and

          ‘(iii) is located within boundaries that--

            ‘(I) are fixed cooperatively by responsible State and local officials, subject to approval by the Secretary; and

            ‘(II) encompass, at a minimum, the entire urban place designated by the Bureau of the Census (except in the case of cities in the State of Maine and in the State of New Hampshire).

      ‘(41) URBANIZED AREA- The term ‘urbanized area’ means an area that--

        ‘(A) has a population of 50,000 or more;

        ‘(B) is designated by the Bureau of the Census; and

        ‘(C) is located within boundaries that--

          ‘(i) are fixed cooperatively by responsible State and local officials, subject to approval by the Secretary; and

          ‘(ii) encompass, at a minimum, the entire urbanized area within a State as designated by the Bureau of the Census.’.

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Funding

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

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

      (1) INTERSTATE MAINTENANCE PROGRAM- For the Interstate maintenance program under section 119 of title 23, United States Code--

        (A) $5,442,371,792 for fiscal year 2004;

        (B) $6,425,168,342 for fiscal year 2005;

        (C) $6,683,176,289 for fiscal year 2006;

        (D) $6,702,365,186 for fiscal year 2007;

        (E) $7,036,621,314 for fiscal year 2008; and

        (F) $7,139,130,081 for fiscal year 2009.

      (2) NATIONAL HIGHWAY SYSTEM- For the National Highway System under section 103 of that title--

        (A) $6,593,922,257 for fiscal year 2004;

        (B) $7,815,590,130 for fiscal year 2005;

        (C) $8,125,241,450 for fiscal year 2006;

        (D) $8,148,531,791 for fiscal year 2007;

        (E) $8,554,231,977 for fiscal year 2008; and

        (F) $8,678,591,297 for fiscal year 2009.

      (3) BRIDGE PROGRAM- For the bridge program under section 144 of that title--

        (A) $4,650,754,076 for fiscal year 2004;

        (B) $5,507,287,150 for fiscal year 2005;

        (C) $5,713,860,644 for fiscal year 2006;

        (D) $5,730,266,418 for fiscal year 2007;

        (E) $6,016,042,650 for fiscal year 2008; and

        (F) $6,103,714,622 for fiscal year 2009.

      (4) SURFACE TRANSPORTATION PROGRAM- For the surface transportation program under section 133 of that title--

        (A) $6,877,178,900 for fiscal year 2004;

        (B) $8,107,950,527 for fiscal year 2005;

        (C) $8,417,741,127 for fiscal year 2006;

        (D) $8,441,910,349 for fiscal year 2007;

        (E) $8,862,919,976 for fiscal year 2008; and

        (F) $8,992,134,975 for fiscal year 2009.

      (5) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM- For the congestion mitigation and air quality improvement program under section 149 of that title--

        (A) $1,880,092,073 for fiscal year 2004;

        (B) $2,192,716,180 for fiscal year 2005;

        (C) $2,270,239,273 for fiscal year 2006;

        (D) $2,276,757,639 for fiscal year 2007;

        (E) $2,390,302,660 for fiscal year 2008; and

        (F) $2,425,236,569 for fiscal year 2009.

      (6) HIGHWAY SAFETY IMPROVEMENT PROGRAM- For the highway safety improvement program under section 148 of that title--

        (A) $1,187,426,572 for fiscal year 2004;

        (B) $1,325,828,388 for fiscal year 2005;

        (C) $1,377,448,548 for fiscal year 2006;

        (D) $1,381,403,511 for fiscal year 2007;

        (E) $1,450,295,996 for fiscal year 2008; and

        (F) $1,471,607,029 for fiscal year 2009.

      (7) APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM PROGRAM- For the Appalachian development highway system program under section 170 of that title, $590,000,000 for each of fiscal years 2004 through 2009.

      (8) RECREATIONAL TRAILS PROGRAM- For the recreational trails program under section 206 of that title, $60,000,000 for each of fiscal years 2004 through 2009.

      (9) FEDERAL LANDS HIGHWAYS PROGRAM-

        (A) INDIAN RESERVATION ROADS- For Indian reservation roads under section 204 of that title--

          (i) $300,000,000 for fiscal year 2004;

          (ii) $325,000,000 for fiscal year 2005;

          (iii) $350,000,000 for fiscal year 2006;

          (iv) $375,000,000 for fiscal year 2007;

          (v) $400,000,000 for fiscal year 2008; and

          (vi) $425,000,000 for fiscal year 2009.

        (B) RECREATION ROADS- For recreation roads under section 204 of that title, $50,000,000 for each of fiscal years 2004 through 2009.

        (C) PARK ROADS AND PARKWAYS- For park roads and parkways under section 204 of that title--

          (i) $300,000,000 for fiscal year 2004;

          (ii) $310,000,000 for fiscal year 2005; and

          (iii) $320,000,000 for each of fiscal years 2006 through 2009.

        (D) REFUGE ROADS- For refuge roads under section 204 of that title, $30,000,000 for each of fiscal years 2004 through 2009.

        (E) PUBLIC LANDS HIGHWAYS- For Federal lands highways under section 204 of that title, $300,000,000 for each of fiscal years 2004 through 2009.

        (F) SAFETY- For safety under section 204 of that title, $40,000,000 for each of fiscal years 2004 through 2009.

      (10) MULTISTATE CORRIDOR PROGRAM- For the multistate corridor program under section 171 of that title--

        (A) $112,500,000 for fiscal year 2004;

        (B) $135,000,000 for fiscal year 2005;

        (C) $157,500,000 for fiscal year 2006;

        (D) $180,000,000 for fiscal year 2007;

        (E) $202,500,000 for fiscal year 2008; and

        (F) $225,000,000 for fiscal year 2009.

      (11) BORDER PLANNING, OPERATIONS, AND TECHNOLOGY PROGRAM- For the border planning, operations, and technology program under section 172 of that title--

        (A) $112,500,000 for fiscal year 2004;

        (B) $135,000,000 for fiscal year 2005;

        (C) $157,500,000 for fiscal year 2006;

        (D) $180,000,000 for fiscal year 2007;

        (E) $202,500,000 for fiscal year 2008; and

        (F) $225,000,000 for fiscal year 2009.

      (12) NATIONAL SCENIC BYWAYS PROGRAM- For the national scenic byways program under section 162 of that title--

        (A) $34,000,000 for fiscal year 2004;

        (B) $35,000,000 for fiscal year 2005;

        (C) $36,000,000 for fiscal year 2006;

        (D) $37,000,000 for fiscal year 2007; and

        (E) $39,000,000 for each of fiscal years 2008 and 2009.

      (13) INFRASTRUCTURE PERFORMANCE AND MAINTENANCE PROGRAM- For carrying out the infrastructure performance and maintenance program under section 139 of that title $2,000,000,000 for fiscal year 2004.

      (14) CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES- For construction of ferry boats and ferry terminal facilities under section 147 of that title, $50,000,000 for each of fiscal years 2004 through 2009.

      (15) COMMONWEALTH OF PUERTO RICO HIGHWAY PROGRAM- For the Commonwealth of Puerto Rico highway program under section 173 of that title--

        (A) $140,000,000 for fiscal year 2004;

        (B) $145,000,000 for fiscal year 2005;

        (C) $149,000,000 for fiscal year 2006;

        (D) $154,000,000 for fiscal year 2007;

        (E) $160,000,000 for fiscal year 2008; and

        (F) $163,000,000 for fiscal year 2009.

      (16) PUBLIC-PRIVATE PARTNERSHIPS PILOT PROGRAM- For the public-private partnerships pilot program under section 109(c)(3) of that title, $10,000,000 for each of fiscal years 2004 through 2009.

      (17) DENALI ACCESS SYSTEM- For the Denali Access System under section 309 of the Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 105-277), $30,000,000 for each of fiscal years 2004 through 2009.

      (18) DELTA REGION TRANPORTATION DEVELOPMENT PROGRAM- For planning and construction activities authorized under the Delta Regional Authority, $80,000,000 for each of fiscal years 2004 through 2009.

SEC. 1102. OBLIGATION CEILING.

    (a) GENERAL LIMITATION- Subject to subsections (g) and (h), and notwithstanding any other provision of law, the obligations for Federal-aid highway and highway safety construction programs shall not exceed--

      (1) $33,643,326,300 for fiscal year 2004;

      (2) $37,900,000,000 for fiscal year 2005;

      (3) $39,100,000,000 for each of fiscal years 2006 and 2007;

      (4) $39,400,000,000 for fiscal year 2008; and

      (5) $44,400,000,000 for fiscal year 2009.

    (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 (Public Law 97-134; 95 Stat. 1701);

      (4) subsections (b) and (j) of section 131 of the Surface Transportation Assistance Act of 1982 (Public Law 97-424; 96 Stat. 2119);

      (5) subsections (b) and (c) of section 149 of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (Public Law 100-17; 101 Stat. 198);

      (6) sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240; 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 2003, 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 (Public Law 105-178; 112 Stat. 107) or subsequent public laws for multiple years or to remain available until used, but only to the extent that the obligation authority has not lapsed or been used; and

      (10) section 105 of title 23, United States Code (but, for each of fiscal years 2004 through 2009, only in an amount equal to $439,000,000 per fiscal year).

    (c) DISTRIBUTION OF OBLIGATION AUTHORITY- For each of fiscal years 2004 through 2009, 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;

        (B) programs funded from the administrative takedown authorized by section 104(a)(1) of title 23, United States Code; and

        (C) amounts authorized for the highway use tax evasion program and 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 made available from the Highway Trust Fund (other than the Mass Transit Account) for Federal-aid highway and highway safety programs for previous fiscal years the funds for which are allocated by the Secretary;

      (3) shall determine the ratio 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); 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 (9) of subsection (b) and sums authorized to be appropriated for section 105 of title 23, United States Code, equal to the amount referred to in subsection (b)(10) for the fiscal year), less the aggregate of the amounts not distributed under paragraphs (1) and (2);

      (4) shall distribute the obligation authority provided by subsection (a) less the aggregate amounts not distributed under paragraphs (1) and (2), for section 14501 of title 40, United States Code, so that the amount of obligation authority available for that section is equal to the amount determined by multiplying--

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

        (B) the sums authorized to be appropriated for that section for the fiscal year;

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

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

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

      (6) 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 paragraphs (4) and (5), for Federal-aid highway and highway safety construction programs (other than the amounts apportioned for the equity bonus program, but only to the extent that the amounts apportioned for the equity bonus program for the fiscal year are greater than $439,000,000, and the Appalachian development highway system program) that are apportioned by the Secretary under this Act and title 23, United States Code, in the ratio that--

        (A) amounts authorized to be appropriated for the programs that are apportioned to each State for the fiscal year; bear to

        (B) the total of the amounts authorized to be appropriated for the programs that are apportioned 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 2004 through 2009--

      (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 104 and 144 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) title II of this Act.

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

        (A) remain available for a period of 3 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 2004 through 2009, the Secretary shall distribute to the States any funds 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, and will not be available for obligation, in the fiscal year due to the imposition of any obligation limitation for the fiscal year.

      (2) RATIO- Funds shall be distributed under paragraph (1) in the same ratio as the distribution of obligation authority under subsection (c)(6).

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

    (g) SPECIAL RULE- Obligation authority distributed for a fiscal year under subsection (c)(4) for the provision specified in subsection (c)(4) shall--

      (1) remain available until used for obligation of funds for that provision; and

      (2) 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.

    (h) ADJUSTMENT IN OBLIGATION LIMIT-

      (1) IN GENERAL- A limitation on obligations imposed by subsection (a) for a fiscal year shall be adjusted by an amount equal to the amount determined in accordance with section 251(b)(1)(B) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) for the fiscal year.

      (2) DISTRIBUTION- An adjustment under paragraph (1) shall be distributed in accordance with this section.

    (i) LIMITATIONS ON OBLIGATIONS FOR ADMINISTRATIVE EXPENSES- Notwithstanding any other provision of law, the total amount of all obligations under section 104(a) of title 23, United States Code, shall not exceed--

      (1) $450,000,000 for fiscal year 2004;

      (2) $465,000,000 for fiscal year 2005;

      (3) $480,000,000 for fiscal year 2006;

      (4) $495,000,000 for fiscal year 2007;

      (5) $510,000,000 for fiscal year 2008; and

      (6) $525,000,000 for fiscal year 2009.

    (j) NATIONAL HIGHWAY SYSTEM COMPONENT- Section 104(b)(1) of title 23, United States Code, is amended by striking ‘$36,400,000’ and insert ‘$50,000,000’.

SEC. 1103. APPORTIONMENTS.

    (a) ADMINISTRATIVE EXPENSES-

      (1) IN GENERAL- Section 104 of title 23, United States Code, is amended by striking subsection (a) and inserting the following:

    ‘(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 of Transportation for administrative expenses of the Federal Highway Administration--

        ‘(A) $450,000,000 for fiscal year 2004;

        ‘(B) $465,000,000 for fiscal year 2005;

        ‘(C) $480,000,000 for fiscal year 2006;

        ‘(D) $495,000,000 for fiscal year 2007;

        ‘(E) $510,000,000 for fiscal year 2008; and

        ‘(F) $525,000,000 for fiscal year 2009.

      ‘(2) PURPOSES- The funds authorized by this subsection shall be used--

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

        ‘(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.

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

      (2) CONFORMING AMENDMENTS- Section 104 of title 23, United States Code, is amended--

        (A) in the matter preceding paragraph (1) of subsection (b), by striking ‘the deduction authorized by subsection (a) and’;

        (B) in the first sentence of subsection (e)(1), by striking ‘, and also’ and all that follows through ‘this section’; and

        (C) in subsection (i), by striking ‘deducted’ and inserting ‘made available’.

    (b) METROPOLITAN PLANNING- Section 104(f) of title 23, United States Code, is amended--

      (1) by striking paragraph (1) and inserting the following:

      ‘(1) SET-ASIDE- On October 1 of each fiscal year, the Secretary shall set aside 1.5 percent of the funds authorized to be appropriated for the Interstate maintenance, national highway system, surface transportation, congestion mitigation and air quality improvement, highway safety improvement, and highway bridge programs authorized under this title to carry out the requirements of section 134.’;

      (2) in paragraph (2), by striking ‘per centum’ and inserting ‘percent’;

      (3) in paragraph (3)--

        (A) by striking ‘The funds’ and inserting the following:

        ‘(A) IN GENERAL- The funds’; and

        (B) by striking ‘These funds’ and all that follows and inserting the following:

        ‘(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.’; and

      (4) by adding at the end the following:

      ‘(6) FEDERAL SHARE- Funds apportioned to a State under this subsection shall be matched in accordance with section 120(b) unless the Secretary determines that the interests of the Federal-aid highway program would be best served without the match.’.

    (c) ALASKA HIGHWAY- Section 104(b)(1)(A) of title 23, United States Code, is amended by striking ‘1998 through 2002’ and inserting ‘2004 through 2009’.

SEC. 1104. EQUITY BONUS PROGRAM.

    (a) IN GENERAL- Section 105 of title 23, United States Code, is amended to read as follows:

‘Sec. 105. Equity bonus program

    ‘(a) PROGRAM-

      ‘(1) IN GENERAL- Subject to subsections (c) and (d), for each of fiscal years 2004 through 2009, the Secretary shall allocate among the States amounts sufficient to ensure that no State receives a percentage of the total apportionments for the fiscal year for the programs specified in paragraph (2) that is less than the percentage calculated under subsection (b).

      ‘(2) SPECIFIC PROGRAMS- The programs referred to in subsection (a) are--

        ‘(A) the Interstate maintenance program under section 119;

        ‘(B) the national highway system program under section 103;

        ‘(C) the bridge program under section 144;

        ‘(D) the surface transportation program under section 133;

        ‘(E) the highway safety improvement program under section 148;

        ‘(F) the congestion mitigation and air quality improvement program under section 149;

        ‘(G) metropolitan planning programs under section 104(f) (other than planning programs funded by amounts provided under the equity bonus program under this section);

        ‘(H) the infrastructure performance and maintenance program under section 139;

        ‘(I) the equity bonus program under this section;

        ‘(J) the Appalachian development highway system program under subtitle IV of title 40;

        ‘(K) the recreational trails program under section 206;

        ‘(L) the safe routes to schools program under section 150; and

        ‘(M) the rail-highway grade crossing program under section 130.

    ‘(b) STATE PERCENTAGE-

      ‘(1) IN GENERAL- The percentage referred to in subsection (a) for each State shall be--

        ‘(A) 95 percent of the quotient obtained by dividing--

          ‘(i) 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; by

          ‘(ii) the estimated tax payments attributable to highway users in all States paid into the Highway Trust Fund (other than the Mass Transit Account) for the fiscal year; or

        ‘(B) for a State with a total population density of less than 20 persons per square mile, as reported in the decennial census conducted by the Federal Government in 2000, a total population of less than 1,000,000, as reported in that decennial census, or a median household income of less than $35,000, as reported in that decennial census, the greater of--

          ‘(i) the percentage under paragraph (1); or

          ‘(ii) the average percentage of the State’s share of total apportionments for the period of fiscal years 1998 through 2003 for the programs specified in paragraph (2).

      ‘(2) SPECIFIC PROGRAMS- The programs referred to in paragraph (1)(B)(ii) are (as in effect on the day before the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004)--

        ‘(A) the Interstate maintenance program under section 119;

        ‘(B) the national highway system program under section 103;

        ‘(C) the bridge program under section 144;

        ‘(D) the surface transportation program under section 133;

        ‘(E) the recreational trails program under section 206;

        ‘(F) the high priority projects program under section 117;

        ‘(G) the minimum guarantee provided under this section;

        ‘(H) revenue aligned budget authority amounts provided under section 110;

        ‘(I) the congestion mitigation and air quality improvement program under section 149;

        ‘(J) the Appalachian development highway system program under subtitle IV of title 40; and

        ‘(K) metropolitan planning programs under section 104(f).

    ‘(c) SPECIAL RULES-

      ‘(1) MINIMUM COMBINED ALLOCATION- For each fiscal year, before making the allocations under subsection (a)(1), the Secretary shall allocate among the States amounts sufficient to ensure that no State receives a combined total of amounts allocated under subsection (a)(1), apportionments for the programs specified in subsection (a)(2), and amounts allocated under this subsection, that is less than 110 percent of the average for fiscal years 1998 through 2003 of the annual apportionments for the State for all programs specified in subsection (b)(2).

      ‘(2) NO NEGATIVE ADJUSTMENT- Notwithstanding subsection (d), no negative adjustment shall be made under subsection (a)(1) to the apportionment of any State.

      ‘(3) MINIMUM SHARE OF TAX PAYMENTS- Notwithstanding subsection (d), for each fiscal year, the Secretary shall allocate among the States amounts sufficient to ensure that no State receives a percentage of apportionments for the fiscal year for the programs specified in subsection (a)(2) that is less than 90.5 percent of the percentage share of the State of 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.

    ‘(d) LIMITATION ON ADJUSTMENTS-

      ‘(1) IN GENERAL- Except as provided in paragraphs (2) and (3) of subsection (c), no State shall receive, for any fiscal year, additional amounts under subsection (a)(1) if--

        ‘(A) the total apportionments of the State for the fiscal year for the programs specified in subsection (a)(2); exceed

        ‘(B) the percentage of the average, for the period of fiscal years 1998 through 2003, of the annual apportionments of the State for all programs specified in subsection (b)(2), as specified in paragraph (2).

      ‘(2) PERCENTAGES- The percentages referred to in paragraph (1)(B) are--

        ‘(A) for fiscal year 2004, 120 percent;

        ‘(B) for fiscal year 2005, 130 percent;

        ‘(C) for fiscal year 2006, 134 percent;

        ‘(D) for fiscal year 2007, 137 percent;

        ‘(E) for fiscal year 2008, 145 percent; and

        ‘(F) for fiscal year 2009, 250 percent.

    ‘(e) PROGRAMMATIC DISTRIBUTION OF FUNDS- The Secretary shall apportion the amounts made available under this section so that the amount apportioned to each State under this section for each program referred to in subparagraphs (A) through (G) of subsection (a)(2) is equal to the amount determined by multiplying the amount to be apportioned under this section by the proportion that--

      ‘(1) the amount of funds apportioned to each State for each program referred to in subparagraphs (A) through (G) of subsection (a)(2) for a fiscal year; bears to

      ‘(2) the total amount of funds apportioned to each State for all such programs for the fiscal year.

    ‘(f) METRO PLANNING SET ASIDE- Notwithstanding section 104(f), no set aside provided for under that section shall apply to funds allocated under this section.

    ‘(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) such sums as are necessary to carry out this section for each of fiscal years 2004 through 2009.’.

    (b) CONFORMING AMENDMENTS-

      (1) The analysis for subchapter I of chapter 1 of title 23, United States Code, is amended by striking the item relating to section 105 and inserting the following:

      ‘105. Equity bonus program.’

      (2) Section 104(a)(1) of title 23, United States Code, is amended by striking ‘minimum guarantee’ and inserting ‘equity bonus’.

SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

    Section 110 of title 23, United States Code, is amended--

      (1) in subsection (a)--

        (A) in paragraphs (1) and (2), by striking ‘2000’ and inserting ‘2006’;

        (B) in paragraph (1), by inserting ‘(as in effect on September 30, 2002)’ after ‘(2 U.S.C. 901(b)(2)(B)(ii)(I)(cc))’; and

        (C) in paragraph (2)--

          (i) by striking ‘If the amount’ and inserting the following:

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), if the amount’;

          (ii) by inserting ‘(as in effect on September 30, 2002)’ after ‘(2 U.S.C. 901(b)(1)(B)(ii)(I)(cc)’;

          (iii) by striking ‘the succeeding’ and inserting ‘that’;

          (iv) by striking ‘and the motor carrier safety grant program’; and

          (v) by adding at the end the following:

        ‘(B) LIMITATION- No reduction under subparagraph (A) shall be made for a fiscal year if, as of October 1 of the fiscal year, the cash balance in the Highway Trust Fund (other than the Mass Transit Account) exceeds $6,000,000,000.’;

      (2) in subsection (b)(1), by striking subparagraph (A) and inserting the following:

        ‘(A) the sums authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) for each of the Federal-aid highway and highway safety construction programs (other than the equity bonus program) and for which funds are allocated from the Highway Trust Fund by the Secretary under this title and the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004; bears to’;

      (3) in subsection (c), by inserting ‘the highway safety improvement program,’ after ‘the surface transportation program,’; and

      (4) by striking subsections (e), (f), and (g).

Subtitle B--New Programs

SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code, is amended by inserting after section 138 the following:

‘Sec. 139. Infrastructure performance and maintenance program

    ‘(a) ESTABLISHMENT- The Secretary shall establish and implement an infrastructure performance and maintenance program in accordance with this section.

    ‘(b) ELIGIBLE PROJECTS- A State may obligate funds allocated to the State under this section only for projects eligible under the Interstate maintenance program under section 119, the National Highway System program under section 103, the surface transportation program under section 133, the highway safety improvement program under section 148, the highway bridge program under section 144, and the congestion mitigation and air quality improvement program under section 149 that will--

      ‘(1) preserve, maintain, or otherwise extend, in a cost-effective manner, the useful life of existing highway infrastructure elements; or

      ‘(2) provide operational improvements (including traffic management and intelligent transportation system strategies and limited capacity enhancements) at points of recurring highway congestion.

    ‘(c) PERIOD OF AVAILABILITY-

      ‘(1) OBLIGATION WITHIN 180 DAYS-

        ‘(A) IN GENERAL- Funds allocated to a State under this section shall be obligated by the State not later than 180 days after the date of apportionment.

        ‘(B) UNOBLIGATED FUNDS- Any amounts that remain unobligated at the end of that period shall be allocated in accordance with subsection (d).

      ‘(2) OBLIGATION BY END OF FISCAL YEAR-

        ‘(A) IN GENERAL- All funds allocated or reallocated under this section shall remain available for obligation until the last day of the fiscal year for which the funds are apportioned.

        ‘(B) UNOBLIGATED FUNDS- Any amounts allocated that remain unobligated at the end of the fiscal year shall lapse.

    ‘(d) REDISTRIBUTION OF ALLOCATED FUNDS AND OBLIGATION AUTHORITY-

      ‘(1) IN GENERAL- On the date that is 180 days after the date of allocation, or as soon thereafter as practicable, for each fiscal year, the Secretary shall--

        ‘(A) withdraw--

          ‘(i) any funds allocated to a State under this section that remain unobligated; and

          ‘(ii) an equal amount of obligation authority provided for the use of the funds in accordance with section 1101(13) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004; and

        ‘(B) reallocate the funds and redistribute the obligation authority to those States that--

          ‘(i) have fully obligated all amounts allocated under this section for the fiscal year; and

          ‘(ii) demonstrate that the State is able to obligate additional amounts for projects eligible under this section before the end of the fiscal year.

      ‘(2) EQUITY BONUS- The calculation and distribution of funds under section 105 shall be adjusted as a result of the allocation of funds under this subsection.

    ‘(e) FEDERAL SHARE PAYABLE- The Federal share payable for a project funded under this section shall be determined in accordance with section 120.’.

    (b) CONFORMING AMENDMENT- The analysis for chapter 1 of title 23, United States Code, is amended by adding after the item relating to section 138 the following:

      ‘139. Infrastructure performance and maintenance program.’.

SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

    (a) DECLARATION OF POLICY- Section 101 of title 23, United States Code, is amended--

      (1) by striking ‘(b) It is hereby declared to be’ and inserting the following:

    ‘(b) DECLARATION OF POLICY-

      ‘(1) ACCELERATION OF CONSTRUCTION OF FEDERAL-AID HIGHWAY SYSTEMS- Congress declares that it is’;

      (2) in the second paragraph, by striking ‘It is hereby declared’ and inserting the following:

      ‘(2) COMPLETION OF INTERSTATE SYSTEM- Congress declares’; and

      (3) by striking the last paragraph and inserting the following:

      ‘(3) TRANSPORTATION NEEDS OF 21ST CENTURY- Congress declares that--

        ‘(A) it is in the national interest to preserve and enhance the surface transportation system to meet the needs of the United States for the 21st Century;

        ‘(B) the current urban and long distance personal travel and freight movement demands have surpassed the original forecasts and travel demand patterns are expected to change;

        ‘(C) continued planning for and investment in surface transportation is critical to ensure the surface transportation system adequately meets the changing travel demands of the future;

        ‘(D) among the foremost needs that the surface transportation system must meet to provide for a strong and vigorous national economy are safe, efficient, and reliable--

          ‘(i) national and interregional personal mobility (including personal mobility in rural and urban areas) and reduced congestion;

          ‘(ii) flow of interstate and international commerce and freight transportation; and

          ‘(iii) travel movements essential for national security;

        ‘(E) special emphasis should be devoted to providing safe and efficient access for the type and size of commercial and military vehicles that access designated National Highway System intermodal freight terminals;

        ‘(F) it is in the national interest to seek ways to eliminate barriers to transportation investment created by the current modal structure of transportation financing;

        ‘(G) the connection between land use and infrastructure is significant;

        ‘(H) transportation should play a significant role in promoting economic growth, improving the environment, and sustaining the quality of life; and

        ‘(I) the Secretary should take appropriate actions to preserve and enhance the Interstate System to meet the needs of the 21st Century.’.

    (b) NATIONAL SURFACE TRANSPORTATION SYSTEM STUDY-

      (1) IN GENERAL- The Secretary shall--

        (A) conduct a complete investigation and study of the current condition and future needs of the surface transportation system of the United States, including--

          (i) the National Highway System;

          (ii) the Interstate System;

          (iii) the strategic highway network;

          (iv) congressional high priority corridors;

          (v) intermodal connectors;

          (vi) freight facilities;

          (vii) navigable waterways;

          (viii) mass transportation;

          (ix) freight and intercity passenger rail infrastructure and facilities; and

          (x) surface access to airports; and

        (B) develop a conceptual plan, with alternative approaches, for the future to ensure that the surface transportation system will continue to serve the needs of the United States, including specific recommendations regarding design and operational standards, Federal policies, and legislative changes.

      (2) SPECIFIC ISSUES- In conducting the investigation and study, the Secretary shall specifically address--

        (A) the current condition and performance of the Interstate System (including the physical condition of bridges and pavements and operational characteristics and performance), relying primarily on existing data sources;

        (B) the future of the Interstate System, based on a range of legislative and policy approaches for 15-, 30-, and 50-year time periods;

        (C) the expected demographics and business uses that impact the surface transportation system;

        (D) the expected use of the surface transportation system, including the effects of changing vehicle types, modes of transportation, fleet size and weights, and traffic volumes;

        (E) desirable design policies and standards for future improvements of the surface transportation system, including additional access points;

        (F) the identification of urban, rural, national, and interregional needs for the surface transportation system;

        (G) the potential for expansion, upgrades, or other changes to the surface transportation system, including--

          (i) deployment of advanced materials and intelligent technologies;

          (ii) critical multistate, urban, and rural corridors needing capacity, safety, and operational enhancements;

          (iii) improvements to intermodal linkages;

          (iv) security and military deployment enhancements;

          (v) strategies to enhance asset preservation; and

          (vi) implementation strategies;

        (H) the improvement of emergency preparedness and evacuation using the surface transportation system, including--

          (i) examination of the potential use of all modes of the surface transportation system in the safe and efficient evacuation of citizens during times of emergency;

          (ii) identification of the location of critical bottlenecks; and

          (iii) development of strategies to improve system redundancy, especially in areas with a high potential for terrorist attacks;

        (I) alternatives for addressing environmental concerns associated with the future development of the surface transportation system;

        (J) the evaluation and assessment of the current and future capabilities for conducting system-wide real-time performance data collection and analysis, traffic monitoring, and transportation systems operations and management; and

        (K) a range of policy and legislative alternatives for addressing future needs for the surface transportation system, including funding needs and potential approaches to provide funds.

      (3) TECHNICAL ADVISORY COMMITTEE- The Secretary shall establish a technical advisory committee, in a manner consistent with the Federal Advisory Committee Act (5 U.S.C. App.), to collect and evaluate technical input from--

        (A) the Department of Defense;

        (B) appropriate Federal, State, and local officials with responsibility for transportation;

        (C) appropriate State and local elected officials;

        (D) transportation and trade associations;

        (E) emergency management officials;

        (F) freight providers;

        (G) the general public; and

        (H) other entities and persons determined appropriate by the Secretary to ensure a diverse range of views.

      (4) REPORT- Not later than 4 years after the date of enactment of this Act, 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, and make readily available to the public, a report on the results of the investigation and study conducted under this subsection.

SEC. 1203. FREIGHT TRANSPORTATION GATEWAYS; FREIGHT INTERMODAL CONNECTIONS.

    (a) FREIGHT TRANSPORTATION GATEWAYS- Chapter 3 of title 23, United States Code, is amended by adding at the end the following:

‘Sec. 325. Freight transportation gateways

    ‘(a) IN GENERAL-

      ‘(1) ESTABLISHMENT- The Secretary shall establish a freight transportation gateways program to improve productivity, security, and safety of freight transportation gateways, while mitigating congestion and community impacts in the area of the gateways.

      ‘(2) PURPOSES- The purposes of the freight transportation gateways program shall be--

        ‘(A) to facilitate and support multimodal freight transportation initiatives at the State and local levels in order to improve freight transportation gateways and mitigate the impact of congestion on the environment in the area of the gateways;

        ‘(B) to provide capital funding to address infrastructure and freight operational needs at freight transportation gateways;

        ‘(C) to encourage adoption of new financing strategies to leverage State, local, and private investment in freight transportation gateways;

        ‘(D) to facilitate access to intermodal freight transfer facilities; and

        ‘(E) to increase economic efficiency by facilitating the movement of goods.

    ‘(b) STATE RESPONSIBILITIES-

      ‘(1) PROJECT DEVELOPMENT PROCESS- Each State, in coordination with metropolitan planning organizations, shall ensure that intermodal freight transportation, trade facilitation, and economic development needs are adequately considered and fully integrated into the project development process, including transportation planning through final design and construction of freight-related transportation projects.

      ‘(2) FREIGHT TRANSPORTATION COORDINATOR-

        ‘(A) IN GENERAL- Each State shall designate a freight transportation coordinator.

        ‘(B) DUTIES- The coordinator shall--

          ‘(i) foster public and private sector collaboration needed to implement complex solutions to freight transportation and freight transportation gateway problems, including--

            ‘(I) coordination of metropolitan and statewide transportation activities with trade and economic interests;

            ‘(II) coordination with other States, agencies, and organizations to find regional solutions to freight transportation problems; and

            ‘(III) coordination with local officials of the Department of Defense and the Department of Homeland Security, and with other organizations, to develop regional solutions to military and homeland security transportation needs; and

          ‘(ii) promote programs that build professional capacity to better plan, coordinate, integrate, and understand freight transportation needs for the State.

    ‘(c) INNOVATIVE FINANCE STRATEGIES-

      ‘(1) IN GENERAL- States and localities are encouraged to adopt innovative financing strategies for freight transportation gateway improvements, including--

        ‘(A) new user fees;

        ‘(B) modifications to existing user fees, including trade facilitation charges;

        ‘(C) revenue options that incorporate private sector investment; and

        ‘(D) a blending of Federal-aid and innovative finance programs.

      ‘(2) TECHNICAL ASSISTANCE- The Secretary shall provide technical assistance to States and localities with respect to the strategies.

    ‘(d) INTERMODAL FREIGHT TRANSPORTATION PROJECTS-

      ‘(1) USE OF SURFACE TRANSPORTATION PROGRAM FUNDS- A State may obligate funds apportioned to the State under section 104(b)(3) for publicly-owned intermodal freight transportation projects that provide community and highway benefits by addressing economic, congestion, system reliability, security, safety, or environmental issues associated with freight transportation gateways.

      ‘(2) ELIGIBLE PROJECTS- A project eligible for funding under this section--

        ‘(A) may include publicly-owned intermodal freight transfer facilities, access to the facilities, and operational improvements for the facilities (including capital investment for intelligent transportation systems), except that projects located within the boundaries of port terminals shall only include the surface transportation infrastructure modifications necessary to facilitate direct intermodal interchange, transfer, and access into and out of the port; and

        ‘(B) may involve the combining of private and public funds.’.

    (b) ELIGIBILITY FOR SURFACE TRANSPORTATION PROGRAM FUNDS- Section 133(b) of title 23, United States Code, is amended by inserting after paragraph (11) the following:

      ‘(12) Intermodal freight transportation projects in accordance with section 325(d)(2).’.

    (c) FREIGHT INTERMODAL CONNECTIONS TO NHS- Section 103(b) of title 23, United States Code, is amended by adding at the end the following:

      ‘(7) FREIGHT INTERMODAL CONNECTIONS TO THE NHS-

        ‘(A) FUNDING SET-ASIDE- Of the funds apportioned to a State for each fiscal year under section 104(b)(1), an amount determined in accordance with subparagraph (B) shall only be available to the State to be obligated for projects on--

          ‘(i) National Highway System routes connecting to intermodal freight terminals identified according to criteria specified in the report to Congress entitled ‘Pulling Together: The National Highway System and its Connections to Major Intermodal Terminals’ dated May 24, 1996, referred to in paragraph (1), and any modifications to the connections that are consistent with paragraph (4);

          ‘(ii) strategic highway network connectors to strategic military deployment ports; and

          ‘(iii) projects to eliminate railroad crossings or make railroad crossing improvements.

        ‘(B) DETERMINATION OF AMOUNT- The amount of funds for each State for a fiscal year that shall be set aside under subparagraph (A) shall be equal to the greater of--

          ‘(i) the product obtained by multiplying--

            ‘(I) the total amount of funds apportioned to the State under section 104(b)(1); by

            ‘(II) the percentage of miles that routes specified in subparagraph (A) constitute of the total miles on the National Highway System in the State; or

          ‘(ii) 2 percent of the annual apportionment to the State of funds under 104(b)(1).

        ‘(C) EXEMPTION FROM SET-ASIDE- For any fiscal year, a State may obligate the funds otherwise set aside by this paragraph for any project that is eligible under paragraph (6) and is located in the State on a segment of the National Highway System specified in paragraph (2), if the State certifies and the Secretary concurs that--

          ‘(i) the designated National Highway System intermodal connectors described in subparagraph (A) are in good condition and provide an adequate level of service for military vehicle and civilian commercial vehicle use; and

          ‘(ii) significant needs on the designated National Highway System intermodal connectors are being met or do not exist.’.

    (d) FEDERAL SHARE PAYABLE- Section 120 of title 23, United States Code, is amended by adding at the end the following:

    ‘(m) INCREASED FEDERAL SHARE FOR CONNECTORS- In the case of a project to support a National Highway System intermodal freight connection or strategic highway network connector to a strategic military deployment port described in section 103(b)(7), except as otherwise provided in section 120, the Federal share of the total cost of the project shall be 90 percent.’.

    (e) LENGTH LIMITATIONS- Section 31111(e) of title 49, United States Code, is amended--

      (1) by striking ‘The’ and inserting the following:

      ‘(1) IN GENERAL- The’; and

      (2) by adding at the end the following:

      ‘(2) LENGTH LIMITATIONS- In the interests of economic competitiveness, security, and intermodal connectivity, not later than 3 years after the date of enactment of this paragraph, States shall update the list of those qualifying highways to include--

        ‘(A) strategic highway network connectors to strategic military deployment ports; and

        ‘(B) National Highway System intermodal freight connections serving military and commercial truck traffic going to major intermodal terminals as described in section 103(b)(7)(A)(i).’.

    (f) CONFORMING AMENDMENT- The analysis of chapter 3 of title 23, United States Code, is amended by adding at the end the following:

      ‘325. Freight transportation gateways.’.

SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL AND MAINTENANCE FACILITIES; COORDINATION OF FERRY CONSTRUCTION AND MAINTENANCE.

    (a) IN GENERAL- Section 147 of title 23, United States Code, is amended to read as follows:

‘Sec. 147. Construction of ferry boats and ferry terminal and maintenance facilities; coordination of ferry construction and maintenance

    ‘(a) CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES-

      ‘(1) IN GENERAL- The Secretary shall carry out a program for construction of ferry boats and ferry terminal facilities in accordance with section 129(c).

      ‘(2) FEDERAL SHARE- The Federal share of the cost of construction of ferry boats and ferry terminals and maintenance facilities under this subsection shall be 80 percent.

      ‘(3) ALLOCATION OF FUNDS- The Secretary shall give priority in the allocation of funds under this subsection to those ferry systems, and public entities responsible for developing ferries, that--

        ‘(A) carry the greatest number of passengers and vehicles;

        ‘(B) carry the greatest number of passengers in passenger-only service; or

        ‘(C) provide critical access to areas that are not well-served by other modes of surface transportation.

    ‘(b) NON-CONTRACT AUTHORITY AUTHORIZATION OF APPROPRIATIONS-

      ‘(1) IN GENERAL- There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) $50,000,000 for each fiscal year to carry out this section.

      ‘(2) AVAILABILITY- Notwithstanding section 118(a), funds made available under paragraph (1) shall be available in advance of an annual appropriation.’.

    (b) CONFORMING AMENDMENTS-

      (1) The analysis for subchapter I of chapter 1 of title 23, United States Code, is amended by striking the item relating to section 147 and inserting the following:

      ‘147. Construction of ferry boats and ferry terminal and maintenance facilities.’.

      (2) Section 1064 of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2005) is repealed.

SEC. 1205. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE HIGHWAY.

    (a) DESIGNATION- Interstate Highway 86 in the State of New York, extending from the Pennsylvania border near Lake Erie through Orange County, New York, shall be known and designated as the ‘Daniel Patrick Moynihan Interstate Highway’.

    (b) REFERENCES- Any reference in a law, map, regulation, document, paper, or other record of the United States to the highway referred to in subsection (a) shall be deemed to be a reference to the Daniel Patrick Moynihan Interstate Highway.

SEC. 1206. STATE-BY-STATE COMPARISON OF HIGHWAY CONSTRUCTION COSTS.

    (a) COLLECTION OF DATA-

      (1) IN GENERAL- The Administrator of the Federal Highway Administration (referred to in this section as the ‘Administrator’) shall collect from States any bid price data that is necessary to make State-by-State comparisons of highway construction costs.

      (2) DATA REQUIRED- In determining which data to collect and the procedures for collecting data, the Administrator shall take into account the data collection deficiencies identified in the report prepared by the General Accounting Office numbered GAO-04-113R.

    (b) REPORT-

      (1) IN GENERAL- The Administrator shall submit to Congress an annual report on the bid price data collected under subsection (a).

      (2) INCLUSIONS- The report shall include--

        (A) State-by-State comparisons of highway construction costs for the previous fiscal year (including the cost to construct a 1-mile road segment of a standard design, as determined by the Administrator); and

        (B) a description of the competitive bidding procedures used in each State; and

        (C) a determination by Administrator as to whether the competitive bidding procedures described under subparagraph (B) are effective.

Subtitle C--Finance

SEC. 1301. FEDERAL SHARE.

    Section 120 of title 23, United States Code, is amended--

      (1) in subsection (a), by striking paragraph (1) and inserting the following:

      ‘(1) IN GENERAL- Except as otherwise provided in this chapter, the Federal share payable on account of any project on the Interstate System (including a project to add high occupancy vehicle lanes and a project to add auxiliary lanes but excluding a project to add any other lanes) shall be 90 percent of the total cost of the project.’;

      (2) in subsection (b)--

        (A) by striking ‘Except as otherwise’ and inserting the following:

      ‘(1) IN GENERAL- Except as otherwise’;

        (B) by striking ‘shall be--’ and all that follows and inserting ‘shall be 80 percent of the cost of the project.’; and

        (C) by adding at the end the following:

      ‘(2) STATE-DETERMINED LOWER FEDERAL SHARE- In the case of any project subject to this subsection, a State may determine a lower Federal share than the Federal share determined under paragraph (1).’;

      (3) by striking subsection (d) and inserting the following:

    ‘(d) INCREASED FEDERAL SHARE-

      ‘(1) IN GENERAL- The Federal share payable under subsection (a) or (b) may be increased for projects and activities in each State in which is located--

        ‘(A) nontaxable Indian land;

        ‘(B) public land (reserved or unreserved);

        ‘(C) a national forest; or

        ‘(D) a national park or monument.

      ‘(2) AMOUNT-

        ‘(A) IN GENERAL- The Federal share for States described in paragraph (1) shall be increased by a percentage of the remaining cost that--

          ‘(i) is equal to the percentage that--

            ‘(I) the area of all land described in paragraph (1) in a State; bears to

            ‘(II) the total area of the State; but

          ‘(ii) does not exceed 95 percent of the total cost of the project or activity for which the Federal share is provided.

        ‘(B) ADJUSTMENT- The Secretary shall adjust the Federal share for States under subparagraph (A) as the Secretary determines necessary, on the basis of data provided by the Federal agencies that are responsible for maintaining the data.’.

SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

    Section 104 of title 23, United States Code, is amended by striking subsection (k) and inserting the following:

    ‘(k) TRANSFER OF HIGHWAY AND TRANSIT FUNDS-

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

        ‘(A) IN GENERAL- Subject to subparagraph (B), funds 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 transferred funds.

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

      ‘(3) TRANSFER OF HIGHWAY FUNDS TO OTHER FEDERAL AGENCIES-

        ‘(A) IN GENERAL- Except as provided in clauses (i) and (ii) and subparagraph (B), funds made available under this title or any other Act that are derived from Highway Trust Fund (other than the Mass Transit account) may be transferred to another Federal agency if--

          ‘(i)(I) an expenditure is specifically authorized in Federal-aid highway legislation or as a line item in an appropriation act; or

          ‘(II) a State transportation department consents to the transfer of funds;

          ‘(ii) the Secretary determines, after consultation with the State transportation department (as appropriate), that the Federal agency should carry out a project with the funds; and

          ‘(iii) the other Federal agency agrees to accept the transfer of funds and to administer the project.

        ‘(B) ADMINISTRATION-

          ‘(i) PROCEDURES- A project carried out with funds transferred to a Federal agency under subparagraph (A) shall be administered by the Federal agency under the procedures of the Federal agency.

          ‘(ii) APPROPRIATIONS- Funds transferred to a Federal agency under subparagraph (A) shall not be considered an augmentation of the appropriations of the Federal agency.

          ‘(iii) NON-FEDERAL SHARE- The provisions of this title, or an Act described in subparagraph (A), relating to the non-Federal share shall apply to a project carried out with the transferred funds, unless the Secretary determines that it is in the best interest of the United States that the non-Federal share be waived.

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

        ‘(A) IN GENERAL- Subject to subparagraphs (B) through (D), the Secretary may, at the request of a State, transfer funds apportioned or allocated to the State to another State, or to the Federal Highway Administration, for the purpose of funding 1 or more specific projects.

        ‘(B) ADMINISTRATION- The transferred funds shall be used for the same purpose and in the same manner for which the transferred funds were authorized.

        ‘(C) APPORTIONMENT- The transfer shall have no effect on any apportionment formula used to distribute funds to States under this section or section 105 or 144.

        ‘(D) SURFACE TRANSPORTATION PROGRAM- Funds that are apportioned or allocated to a State under subsection (b)(3) and attributed to an urbanized area of a State with a population of over 200,000 individuals under section 133(d)(2) may be transferred under this paragraph only if the metropolitan planning organization designated for the area concurs, in writing, with the transfer request.

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

SEC. 1303. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT AMENDMENTS.

    (a) DEFINITIONS- Section 181 of title 23, United States Code, is amended--

      (1) in paragraph (3), by striking ‘category’ and ‘offered into the capital markets’;

      (2) by striking paragraph (7) and redesignating paragraphs (8) through (15) as paragraphs (7) through (14) respectively;

      (3) in paragraph (8) (as redesignated by paragraph (2))--

        (A) in subparagraph (B), by striking the period at the end and inserting a semicolon; and

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

        ‘(D) a project that--

          ‘(i)(I) is a project for--

            ‘(aa) a public freight rail facility or a private facility providing public benefit;

            ‘(bb) an intermodal freight transfer facility;

            ‘(cc) a means of access to a facility described in item (aa) or (bb);

            ‘(dd) a service improvement for a facility described in item (aa) or (bb) (including a capital investment for an intelligent transportation system); or

          ‘(II) comprises a series of projects described in subclause (I) 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; and

          ‘(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

      (4) in paragraph (10) (as redesignated by paragraph (2)) by striking ‘bond’ and inserting ‘credit’.

    (b) DETERMINATION OF ELIGIBILITY AND PROJECT SELECTION- Section 182 of title 23, United States Code, is amended--

      (1) in subsection (a)--

        (A) by striking paragraphs (1) and (2) and inserting the following:

      ‘(1) 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 subchapter.

      ‘(2) 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 to the Secretary.’;

        (B) in paragraph (3)(A)--

          (i) in clause (i), by striking ‘$100,000,000’ and inserting ‘$50,000,000’; and

          (ii) in clause (ii), by striking ‘50’ and inserting ‘20’; and

        (C) in paragraph (4)--

          (i) by striking ‘Project financing’ and inserting ‘The Federal credit instrument’; and

          (ii) by inserting before the period at the end the following: ‘that also secure the project obligations’; and

      (2) in subsection (b)--

        (A) in paragraph (1), by striking ‘criteria’ the second place it appears and inserting ‘requirements’; and

        (B) in paragraph (2)(B), by inserting ‘(which may be the Federal credit instrument)’ after ‘obligations’.

    (c) SECURED LOANS- Section 183 of title 23, United States Code, is amended--

      (1) in subsection (a)--

        (A) in paragraph (1)--

          (i) by striking ‘of any project selected under section 182.’ at the end;

          (ii) in subparagraphs (A) and (B), by inserting ‘of any project selected under section 182’ after ‘costs’ ; and

          (iii) in subparagraph (B), by striking the semicolon at the end and inserting a period; and

        (B) in paragraph (4)--

          (i) by striking ‘funding’ and inserting ‘execution’; and

          (ii) by striking ‘rating,’ and all that follows and inserting a period;

      (2) in subsection (b)--

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

      ‘(2) MAXIMUM AMOUNT- The amount of the secured loan shall not exceed the lesser of--

        ‘(A) 33 percent of the reasonably anticipated eligible project costs; or

        ‘(B) the amount of the senior project obligations.’;

        (B) in paragraph (3)(A)(i), by inserting ‘that also secure the senior project obligations’ after ‘sources’; and

        (C) in paragraph (4), by striking ‘marketable’; and

      (3) in subsection (c)--

        (A) by striking paragraph (3);

        (B) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively; and

        (C) in paragraph (3) (as redesignated by subparagraph (B))--

          (i) in subparagraph (A), by striking ‘during the 10 years’; and

          (ii) in subparagraph (B)(ii), by striking ‘loan’ and all that follows and inserting ‘loan.’.

    (d) LINES OF CREDIT- Section 184 of title 23, United States Code, is amended--

      (1) in subsection (b)--

        (A) in paragraph (3), by striking ‘interest, any debt service reserve fund, and any other available reserve’ and inserting ‘interest (but not including reasonably required financing reserves)’;

        (B) in paragraph (4), by striking ‘marketable United States Treasury securities as of the date on which the line of credit is obligated’ and inserting ‘ United States Treasury securities as of the date of execution of the line of credit agreement’; and

        (C) in paragraph (5)(A)(i), by inserting ‘that also secure the senior project obligations’ after ‘sources’; and

      (2) in subsection (c)--

        (A) in paragraph (2)--

          (i) by striking ‘scheduled’;

          (ii) by inserting ‘be scheduled to’ after ‘shall’; and

          (iii) by striking ‘be fully repaid, with interest,’ and inserting ‘to conclude, with full repayment of principal and interest,’; and

        (B) by striking paragraph (3).

    (e) PROGRAM ADMINISTRATION- Section 185 of title 23, United States Code, is amended to read as follows:

‘Sec. 185. Program administration

    ‘(a) REQUIREMENT- The Secretary shall establish a uniform system to service the Federal credit instruments made available under this subchapter.

    ‘(b) FEES- The Secretary may establish fees at a level to cover 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.’.

    (f) FUNDING- Section 188 of title 23, United States Code, is amended to read as follows:

‘Sec. 188. Funding

    ‘(a) FUNDING-

      ‘(1) IN GENERAL- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this subchapter $130,000,000 for each of fiscal years 2004 through 2009.

      ‘(2) ADMINISTRATIVE COSTS- Of amounts made available under paragraph (1), the Secretary may use for the administration of this subchapter not more than $2,000,000 for each of fiscal years 2004 through 2009.

      ‘(3) COLLECTED FEES AND SERVICES- In addition to funds provided under paragraph (2)--

        ‘(A) all fees collected under this subchapter shall be made available without further appropriation to the Secretary until expended, for use in administering this subchapter; and

        ‘(B) the Secretary may accept and use payment or services provided by transaction participants, or third parties that are paid by participants from transaction proceeds, for due diligence, legal, financial, or technical services.

      ‘(4) AVAILABILITY- Amounts made available under paragraph (1) shall remain available until expended.

    ‘(b) CONTRACT AUTHORITY-

      ‘(1) IN GENERAL- Notwithstanding any other provision of law, approval by the Secretary of a Federal credit instrument that uses funds made available under this subchapter shall be deemed to be acceptance by the United States of a contractual obligation to fund the Federal credit investment.

      ‘(2) AVAILABILITY- Amounts authorized under this section for a fiscal year shall be available for obligation on October 1 of the fiscal year.’.

    (g) REPEAL- Section 189 of title 23, United States code, is repealed.

    (h) CONFORMING AMENDMENTS- The analysis for chapter 1 of title 23, United States Code, is amended--

      (1) by striking the item relating to section 185 and inserting the following:

      ‘185. Program administration.’;

      and

      (2) by striking the item relating to section 189.

SEC. 1304. FACILITATION OF INTERNATIONAL REGISTRATION PLANS AND INTERNATIONAL FUEL TAX AGREEMENTS.

    (a) IN GENERAL- Chapter 317 of title 49, United States Code, is amended by adding at the end the following:

‘Sec. 31708. Facilitation of international registration plans and international fuel tax agreements

    ‘The Secretary may provide assistance to any State that is participating in the International Registration Plan and International Fuel Tax Agreement, as provided in sections 31704 and 31705, respectively, and that serves as a base jurisdiction for motor carriers that are domiciled in Mexico, to assist the State with administrative costs resulting from serving as a base jurisdiction for motor carriers from Mexico.’.

    (b) CONFORMING AMENDMENT- The analysis for chapter 317 of title 49, United States Code, is amended by adding at the end the following:

      ‘31708. Facilitation of international registration plans and international fuel tax agreements.’.

SEC. 1305. NATIONAL COMMISSION ON FUTURE REVENUE SOURCES TO SUPPORT THE HIGHWAY TRUST FUND AND FINANCE THE NEEDS OF THE SURFACE TRANSPORTATION SYSTEM.

    (a) ESTABLISHMENT- There is established a commission to be known as the ‘National Commission on Future Revenue Sources to Support the Highway Trust Fund and Finance the Needs of the Surface Transportation System’ (referred to in this section as the ‘Commission’).

    (b) MEMBERSHIP-

      (1) COMPOSITION- The Commission shall be composed of 11 members, of whom--

        (A) 3 members shall be appointed by the President;

        (B) 2 members shall be appointed by the Speaker of the House of Representatives;

        (C) 2 members shall be appointed by the minority leader of the House of Representatives;

        (D) 2 members shall be appointed by the majority leader of the Senate; and

        (E) 2 members shall be appointed by the minority leader of the Senate.

      (2) QUALIFICATIONS- Members appointed under paragraph (1) shall have experience in or represent the interests of--

        (A) public finance, including experience in developing State and local revenue resources;

        (B) surface transportation program administration;

        (C) organizations that use surface transportation facilities;

        (D) academic research into related issues; or

        (E) other activities that provide unique perspectives on current and future requirements for revenue sources to support the Highway Trust Fund.

      (3) DATE OF APPOINTMENTS- The appointment of a member of the Commission shall be made not later than 120 days after the date of establishment of the Commission.

      (4) TERMS- A member shall be appointed for the life of the Commission.

      (5) VACANCIES- A vacancy on the Commission--

        (A) shall not affect the powers of the Commission; and

        (B) shall be filled in the same manner as the original appointment was made.

      (6) INITIAL MEETING- Not later than 30 days after the date on which all members of the Commission have been appointed, the Commission shall hold the initial meeting of the Commission.

      (7) MEETINGS- The Commission shall meet at the call of the Chairperson.

      (8) QUORUM- A majority of the members of the Commission shall constitute a quorum, but a lesser number of members may hold hearings.

      (9) CHAIRPERSON AND VICE CHAIRPERSON- The Commission shall select a Chairperson and Vice Chairperson from among the members of the Commission.

    (c) DUTIES-

      (1) IN GENERAL- The Commission shall--

        (A) conduct a comprehensive study of alternatives to replace or to supplement the fuel tax as the principal revenue source to support the Highway Trust Fund and suggest new or alternative sources of revenue to fund the needs of the surface transportation system over at least the next 30 years;

        (B) conduct the study in a manner that builds on--

          (i) findings, conclusions, and recommendations of the recent study conducted by the Transportation Research Board on alternatives to the fuel tax to support highway program financing; and

          (ii) other relevant prior research;

        (C) consult with the Secretary and the Secretary of the Treasury in conducting the study to ensure that the views of the Secretaries concerning essential attributes of Highway Trust Fund revenue alternatives are considered;

        (D) consult with representatives of State Departments of Transportation and metropolitan planning organizations and other key interested stakeholders in conducting the study to ensure that--

          (i) the views of the stakeholders on alternative revenue sources to support State transportation improvement programs are considered; and

          (ii) any recommended Federal financing strategy takes into account State financial requirements; and

        (E) based on the study, make specific recommendations regarding--

          (i) actions that should be taken to develop alternative revenue sources to support the Highway Trust Fund; and

          (ii) the time frame for taking those actions.

      (2) SPECIFIC MATTERS- The study shall address specifically--

        (A) the advantages and disadvantages of alternative revenue sources to meet anticipated Federal surface transportation financial requirements;

        (B) recommendations concerning the most promising revenue sources to support long-term Federal surface transportation financing requirements;

        (C) development of a broad transition strategy to move from the current tax base to new funding mechanisms, including the time frame for various components of the transition strategy;

        (D) recommendations for additional research that may be needed to implement recommended alternatives; and

        (E) the extent to which revenues should reflect the relative use of the highway system.

      (3) RELATED WORK- To the maximum extent practicable, the study shall build on related work that has been done by--

        (A) the Secretary of Transportation;

        (B) the Secretary of Energy;

        (C) the Transportation Research Board; and

        (D) other entities and persons.

      (4) FACTORS- In developing recommendations under this subsection, the Commission shall consider--

        (A) the ability to generate sufficient revenues from all modes to meet anticipated long-term surface transportation financing needs;

        (B) the roles of the various levels of government and the private sector in meeting future surface transportation financing needs;

        (C) administrative costs (including enforcement costs) to implement each option;

        (D) the expected increase in non-taxed fuels and the impact of taxing those fuels;

        (E) the likely technological advances that could ease implementation of each option;

        (F) the equity and economic efficiency of each option;

        (G) the flexibility of different options to allow various pricing alternatives to be implemented; and

        (H) potential compatibility issues with State and local tax mechanisms under each alternative.

      (5) REPORT AND RECOMMENDATIONS- Not later than September 30, 2007, the Commission shall submit to Congress a final report that contains--

        (A) a detailed statement of the findings and conclusions of the Commission; and

        (B) the recommendations of the Commission for such legislation and administrative actions as the Commission considers appropriate.

    (d) POWERS-

      (1) HEARINGS- The Commission may hold such hearings, meet and act at such times and places, take such testimony, and receive such evidence as the Commission considers advisable to carry out this section.

      (2) INFORMATION FROM FEDERAL AGENCIES-

        (A) IN GENERAL- The Commission may secure directly from a Federal agency such information as the Commission considers necessary to carry out this section.

        (B) PROVISION OF INFORMATION- On request of the Chairperson of the Commission, the head of the agency shall provide the information to the Commission.

      (3) POSTAL SERVICES- The Commission may use the United States mails in the same manner and under the same conditions as other agencies of the Federal Government.

      (4) DONATIONS- The Commission may accept, use, and dispose of donations of services or property.

    (e) COMMISSION PERSONNEL MATTERS-

      (1) MEMBERS- A member of the Commission shall serve without pay but shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for an employee of an agency under subchapter I of chapter 57 of title 5, United States Code, while away from the home or regular place of business of the member in the performance of the duties of the Commission.

      (2) CONTRACTOR- The Commission may contract with an appropriate organization, agency, or entity to conduct the study required under this section, under the strategic guidance of the Commission.

      (3) ADMINISTRATIVE SUPPORT- On the request of the Commission, the Administrator of the Federal Highway Administration shall provide to the Commission, on a reimbursable basis, the administrative support and services necessary for the Commission to carry out the duties of the Commission under this section.

      (4) DETAIL OF DEPARTMENT PERSONNEL-

        (A) IN GENERAL- On the request of the Commission, the Secretary may detail, on a reimbursable basis, any of the personnel of the Department to the Commission to assist the Commission in carrying out the duties of the Commission under this section.

        (B) CIVIL SERVICE STATUS- The detail of the employee shall be without interruption or loss of civil service status or privilege.

      (5) COOPERATION- The staff of the Secretary shall cooperate with the Commission in the study required under this section, including providing such nonconfidential data and information as are necessary to conduct the study.

    (f) RELATIONSHIP TO OTHER LAWS-

      (1) IN GENERAL- Except as provided in paragraphs (2) and (3), funds made available to carry out this section shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code.

      (2) FEDERAL SHARE- The Federal share of the cost of the study and the Commission under this section shall be 100 percent.

      (3) AVAILABILITY- Funds made available to carry out this section shall remain available until expended.

    (g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this section $3,000,000 for fiscal year 2004.

    (h) TERMINATION-

      (1) IN GENERAL- The Commission shall terminate on the date that is 180 days after the date on which the Commission submits the report of the Commission under subsection (c)(5).

      (2) RECORDS- Not later than the termination date for the Commission, all records and papers of the Commission shall be delivered to the Archivist of the United States for deposit in the National Archives.

SEC. 1306. STATE INFRASTRUCTURE BANKS.

    Section 1511(b)(1)(A) of the Transportation Equity Act for the 21st Century (23 U.S.C. 181 note; 112 Stat. 251) is amended by striking ‘Missouri,’ and all that follows through ‘for the establishment’ and inserting ‘Missouri, Rhode Island, Texas, and any other State that seeks such an agreement for the establishment’.

SEC. 1307. PUBLIC-PRIVATE PARTNERSHIPS PILOT PROGRAM.

    Section 109(c) of title 23, United States Code, is amended by adding at the end the following:

      ‘(3) PUBLIC-PRIVATE PARTNERSHIPS PILOT PROGRAM-

        ‘(A) IN GENERAL- The Secretary may undertake a pilot program to demonstrate the advantages of public-private partnerships for critical capital development projects, including highway, bridge, and freight intermodal connector projects authorized under this title.

        ‘(B) PROJECTS- In carrying out the program, the Secretary shall--

          ‘(i) select not less than 10 qualified public-private partnership projects that are authorized under applicable State and local laws; and

          ‘(ii) use funds made available to carry out the program to provide to sponsors of the projects assistance for development phase activities described in section 181(1)(A), to enhance project delivery and reduce overall costs.’.

SEC. 1308. WAGERING.

    (a) IN GENERAL- Chapter 35 of the Internal Revenue Code of 1986 is repealed.

    (b) CONFORMING AMENDMENTS-

      (1) Section 4901 of the Internal Revenue Code is amended to read as follows:

‘SEC. 4901. PAYMENT OF TAX.

    ‘All special taxes shall be imposed as of on the first day of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for 1 year, and in the latter case it shall be reckoned proportionately, from the first day of the month in which the liability to a special tax commenced, to and including the 30th day of June following.’.

      (2) Section 4903 of such Code is amended by striking ‘, other than the tax imposed by section 4411,’.

      (3) Section 4905 of such Code is amended to read as follows:

‘SEC. 4905. LIABILITY IN CASE OF DEATH OR CHANGE OF LOCATION.

    ‘When any person who has paid the special tax for any trade or business dies, his spouse or child, or executors or administrators or other legal representatives, may occupy the house or premises, and in like manner carry on, for the residue of the term for which the tax is paid, the same trade or business as the deceased before carried on, in the same house and upon the same premises, without the payment of any additional tax. When any person removes from the house or premises for which any trade or business was taxed to any other place, he may carry on the trade or business specified in the register kept in the office of the official in charge of the internal revenue district at the place to which he removes, without the payment of any additional tax: Provided, That all cases of death, change, or removal, as aforesaid, with the name of the successor to any person deceased, or of the person making such change or removal, shall be registered with the Secretary, under regulations to be prescribed by the Secretary.’.

      (4) Section 4907 of such Code is amended by striking ‘, except the tax imposed by section 4411,’.

      (5) Section 6103(i)(8)(A) of such Code is amended--

        (A) by striking ‘, except to the extent authorized by subsection (f) or (p)(6), disclose to any person, other than another officer or employee of such office whose official duties require such disclosure, any return or return information described in section 4424(a) in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer, nor shall such officer or employee disclose any other’ and inserting ‘disclose any’, and

        (B) by striking ‘such other officer’ and inserting ‘such officer’.

      (6) Section 6103(o) of such Code is amended to read as follows:

    ‘(o) DISCLOSURE OF RETURNS AND RETURN INFORMATION WITH RESPECT TO TAXES IMPOSED BY SUBTITLE E- Returns and return information with respect to taxes imposed by subtitle E (relating to taxes on alcohol, tobacco, and firearms) shall be open to inspection by or disclosure to officers and employees of a Federal agency whose official duties require such inspection or disclosure.’.

      (7)(A) Subchapter B of chapter 65 of such Code is amended by striking section 6419 (relating to excise tax on wagering).

      (B) The table of section of subchapter B of chapter 65 of such Code is amended by striking the item relating to section 6419.

      (8) Section 6806 of such Code is amended by striking ‘under subchapter B of chapter 35, under subchapter B of chapter 36,’ and inserting ‘under subchapter B of chapter 36’.

      (9) Section 7012 of such Code is amended by striking paragraph (2) and by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.

      (10)(A) Subchapter B of chapter 75 of such Code is amended by striking section 7262 (relating to violation of occupational tax laws relating to wagering-failure to pay special tax).

      (B) The table of sections of subchapter B of chapter 75 of such Code is amended by striking the item relating to section 7262.

      (11) Section 7272 of such Code, as amended by section 5244 of this Act, is amended to read as follows:

‘SEC. 7272. PENALTY FOR FAILURE TO REGISTER.

    ‘Any person (other than persons required to register under subtitle E, or persons engaging in a trade or business on which a special tax is imposed by such subtitle) who fails to register with the Secretary as required by this title or by regulations issued thereunder shall be liable to a penalty of $50 ($10,000 in the case of a failure to register under section 4101).’.

      (12) Section 7613(a) is amended by striking ‘or other data in the case of’ and all that follows and inserting ‘or other data in the case of alcohol, tobacco, and firearms taxes, see subtitle E.’.

      (13) The table of chapters of subtitle D of such Code is amended by striking the item relating to chapter 35.

    (c) EFFECTIVE DATE-

      (1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to wagers placed after the date of the enactment of this Act.

      (2) SPECIAL TAXES- In the case of amendments made by this section relating to special taxes imposed by subchapter B of chapter 35, the amendments made by this section shall take effect on July 1, 2004.

Subtitle D--Safety

SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

    (a) SAFETY IMPROVEMENT-

      (1) IN GENERAL- 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:

      ‘(1) HIGHWAY SAFETY IMPROVEMENT PROGRAM- The term ‘highway safety improvement program’ means the program carried out under this section.

      ‘(2) HIGHWAY SAFETY IMPROVEMENT PROJECT-

        ‘(A) IN GENERAL- The term ‘highway safety improvement project’ means a project described in the State strategic highway safety plan that--

          ‘(i) corrects or improves a hazardous road location or feature; or

          ‘(ii) addresses a highway safety problem.

        ‘(B) INCLUSIONS- The term ‘highway safety improvement project’ includes a project for--

          ‘(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;

          ‘(iv) installation of a skid-resistant surface at an intersection or other location with a high frequency of accidents;

          ‘(v) an improvement for pedestrian or bicyclist safety;

          ‘(vi)(I) construction of any project for the elimination of hazards at a railway-highway crossing that is eligible for funding under section 130, including the separation or protection of grades at railway-highway crossings;

          ‘(II) construction of a railway-highway crossing safety feature; or

          ‘(III) the conduct of a model traffic enforcement activity at a railway-highway crossing;

          ‘(vii) construction of a traffic calming feature;

          ‘(viii) elimination of a roadside obstacle;

          ‘(ix) improvement of highway signage and pavement markings;

          ‘(x) installation of a priority control system for emergency vehicles at signalized intersections;

          ‘(xi) installation of a traffic control or other warning device at a location with high accident potential;

          ‘(xii) safety-conscious planning;

          ‘(xiii) improvement in the collection and analysis of crash data;

          ‘(xiv) planning, integrated, interoperable emergency communications, equipment, operational activities, or traffic enforcement activities (including police assistance) relating to workzone safety;

          ‘(xv) installation of guardrails, barriers (including barriers between construction work zones and traffic lanes for the safety of motorists and workers), and crash attenuators;

          ‘(xvi) the addition or retrofitting of structures or other measures to eliminate or reduce accidents involving vehicles and wildlife; or

          ‘(xvii) installation and maintenance of signs (including fluorescent, yellow-green signs) at pedestrian-bicycle crossings and in school zones.

      ‘(3) 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 a project to--

          ‘(i) promote the awareness of the public and educate the public concerning highway safety matters; or

          ‘(ii) enforce highway safety laws.

      ‘(4) STATE HIGHWAY SAFETY IMPROVEMENT PROGRAM- The term ‘State highway safety improvement program’ means projects or strategies included in the State strategic highway safety plan carried out as part of the State transportation improvement program under section 135(f).

      ‘(5) STATE STRATEGIC HIGHWAY SAFETY PLAN- The term ‘State strategic highway safety plan’ means a plan developed by the 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) persons responsible for administering section 130 at the State level;

          ‘(vi) representatives conducting Operation Lifesaver;

          ‘(vii) representatives conducting a motor carrier safety program under section 31104 or 31107 of title 49;

          ‘(viii) motor vehicle administration agencies; and

          ‘(ix) other major State and local safety stakeholders;

        ‘(B) analyzes and makes effective use of State, regional, or local crash 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, public roads;

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

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

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

        ‘(H) is consistent with the requirements of section 135(f).

    ‘(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 public roads.

    ‘(c) ELIGIBILITY-

      ‘(1) IN GENERAL- To obligate funds apportioned under section 104(b)(5) to carry out this section, a State shall have in effect a State highway safety improvement program under which the State--

        ‘(A) develops and implements a State strategic highway safety plan that identifies and analyzes highway safety problems and opportunities as provided in paragraph (2);

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

        ‘(C) evaluates the plan on a regular basis to ensure the accuracy of the data and priority of proposed improvements; and

        ‘(D) submits to the Secretary an annual report that--

          ‘(i) describes, in a clearly understandable fashion, not less than 5 percent of locations determined by the State, using criteria established in accordance with paragraph (2)(B)(ii), as exhibiting the most severe safety needs; and

          ‘(ii) contains an assessment of--

            ‘(I) potential remedies to hazardous locations identified;

            ‘(II) estimated costs associated with those remedies; and

            ‘(III) impediments to implementation other than cost associated with those remedies.

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

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

        ‘(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, bicyclists, pedestrians, and other highway users; and

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

        ‘(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 traffic records data collection, analysis, and integration with other sources of safety data (such as road inventories) 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;

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

          ‘(iv) includes a means of identifying the relative severity of hazardous locations described in clause (iii) in terms of accidents, injuries, deaths, and traffic volume levels;

        ‘(E)(i) determine priorities for the correction of hazardous road locations, sections, and elements (including railway-highway crossing improvements), as identified through crash 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) ELIGIBLE PROJECTS-

      ‘(1) IN GENERAL- A State may obligate funds apportioned to the State under section 104(b)(5) 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 (e), for 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 their safety needs and opportunities by using funds made available under other provisions of this title (except a provision that specifically prohibits that use).

    ‘(e) 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 25 percent of the amount of funds made available under this section for a fiscal year to carry out safety projects under any other section as provided in the State strategic highway safety plan.

      ‘(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 this section.

    ‘(f) REPORTS-

      ‘(1) IN GENERAL- A State shall submit to the Secretary a report that--

        ‘(A) describes progress being made to implement highway safety improvement projects under this section;

        ‘(B) assesses the effectiveness of those improvements; and

        ‘(C) describes the extent to which the improvements funded under this section contribute to the goals of--

          ‘(i) reducing the number of fatalities on roadways;

          ‘(ii) reducing the number of roadway-related injuries;

          ‘(iii) reducing the occurrences of roadway-related crashes;

          ‘(iv) mitigating the consequences of roadway-related crashes; and

          ‘(v) reducing the occurrences of roadway-railroad grade crossing crashes.

      ‘(2) CONTENTS; SCHEDULE- The Secretary shall establish the content and schedule for a report under paragraph (1).

      ‘(3) TRANSPARENCY- The Secretary shall make reports under subsection (c)(1)(D) available to the public through--

        ‘(A) the Internet site 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 directly relating to paragraph (1) or subsection (c)(1)(D), or published by the Secretary in accordance with paragraph (3), 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 such reports, surveys, schedules, lists, or other data.

    ‘(g) 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 made available under this section shall be 90 percent.

    ‘(h) FUNDS FOR BICYCLE AND PEDESTRIAN SAFETY- A State shall allocate for bicycle and pedestrian improvements in the State a percentage of the funds remaining after implementation of sections 130(e) and 150, in an amount that is equal to or greater than the percentage of all fatal crashes in the States involving bicyclists and pedestrians.

    ‘(i) ROADWAY SAFETY IMPROVEMENTS FOR OLDER DRIVERS AND PEDESTRIANS- For each of fiscal years 2004 through 2009, $25,000,000 is authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account) for projects in all States to improve traffic signs and pavement markings in a manner consistent with the recommendations included in the publication of the Federal Highway Administration entitled ‘Guidelines and Recommendations to Accommodate Older Drivers and Pedestrians (FHWA-RD-01-103)’ and dated October 2001.’.

      (2) ALLOCATIONS OF APPORTIONED FUNDS- Section 133(d) of title 23, United States Code, is amended--

        (A) by striking paragraph (1);

        (B) by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively;

        (C) in paragraph (2) (as redesignated by subparagraph (B))--

          (i) in the first sentence of subparagraph (A)--

            (I) by striking ‘subparagraphs (C) and (D)’ and inserting ‘subparagraph (C)’; and

            (II) by striking ‘80 percent’ and inserting ‘90 percent’;

          (ii) in subparagraph (B), by striking ‘tobe’ and inserting ‘to be’;

          (iii) by striking subparagraph (C);

          (iv) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively; and

          (v) in subparagraph (C) (as redesignated by clause (iv)), by adding a period at the end; and

        (D) in paragraph (4)(A) (as redesignated by subparagraph (B)), by striking ‘paragraph (2)’ and inserting ‘paragraph (1)’.

      (3) ADMINISTRATION- Section 133(e) of title 23, United States Code, is amended in each of paragraphs (3)(B)(i), (5)(A), and (5)(B) of subsection (e), by striking ‘(d)(2)’ each place it appears and inserting ‘(d)(1)’.

      (4) CONFORMING AMENDMENTS-

        (A) The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 148 and inserting the following:

      ‘148. Highway safety improvement program.’.

        (B) Section 104(g) of title 23, United States Code, is amended in the first sentence by striking ‘sections 130, 144, and 152 of this title’ and inserting ‘sections 130 and 144’.

        (C) Section 126 of title 23, United States Code, is amended--

          (i) in subsection (a), by inserting ‘under’ after ‘State’s apportionment’; and

          (ii) in subsection (b)--

            (I) in the first sentence, by striking ‘the last sentence of section 133(d)(1) or to section 104(f) or to section 133(d)(3)’ and inserting ‘section 104(f) or 133(d)(2)’; and

            (II) in the second sentence, by striking ‘or 133(d)(2)’.

        (D) Sections 154, 164, and 409 of title 23, United States Code, are amended by striking ‘152’ each place it appears and inserting ‘148’.

    (b) APPORTIONMENT OF HIGHWAY SAFETY IMPROVEMENT PROGRAM FUNDS- Section 104(b) of title 23, United States Code, is amended--

      (1) in the matter preceding paragraph (1), by inserting after ‘Improvement program,’ the following: ‘the highway safety improvement program,’; and

      (2) by adding at the end the following:

      ‘(5) HIGHWAY SAFETY IMPROVEMENT PROGRAM-

        ‘(A) IN GENERAL- For the highway safety improvement program, in accordance with the following formula:

          ‘(i) 25 percent of the apportionments in the ratio that--

            ‘(I) the total lane miles of Federal-aid highways in each State; bears to

            ‘(II) the total lane miles of Federal-aid highways in all States.

          ‘(ii) 40 percent of the apportionments in the ratio that--

            ‘(I) the total vehicle miles traveled on lanes on Federal-aid highways in each State; bears to

            ‘(II) the total vehicle miles traveled on lanes on Federal-aid highways in all States.

          ‘(iii) 35 percent of the apportionments in the ratio that--

            ‘(I) the estimated tax payments attributable to highway users in each State paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available; bears to

            ‘(II) the estimated tax payments attributable to highway users in all States paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available.

        ‘(B) MINIMUM APPORTIONMENT- Notwithstanding subparagraph (A), each State shall receive a minimum of 1/2 of 1 percent of the funds apportioned under this paragraph.’.

    (c) ELIMINATION OF HAZARDS RELATING TO RAILWAY-HIGHWAY CROSSINGS-

      (1) FUNDS FOR RAILWAY-HIGHWAY CROSSINGS- Section 130(e) of title 23, United States Code, is amended by inserting before ‘At least’ the following: ‘For each fiscal year, at least $200,000,000 of the funds authorized and expended under section 148 shall be available for the elimination of hazards and the installation of protective devices at railway-highway crossings.’.

      (2) BIENNIAL REPORTS TO CONGRESS- Section 130(g) of title 23, United States Code, is amended in the third sentence--

        (A) by inserting ‘and the Committee on Commerce, Science, and Transportation,’ after ‘Public Works’; and

        (B) by striking ‘not later than April 1 of each year’ and inserting ‘every other year’.

      (3) EXPENDITURE OF FUNDS- Section 130 of title 23, United States Code, is amended by adding at the end the following:

    ‘(k) EXPENDITURE OF FUNDS- Funds made available to carry out this section shall be--

      ‘(1) available for expenditure on compilation and analysis of data in support of activities carried out under subsection (g); and

      ‘(2) apportioned in accordance with section 104(b)(5).’.

    (d) TRANSITION-

      (1) IMPLEMENTATION- Except as provided in paragraph (2), the Secretary shall approve obligations of funds apportioned under section 104(b)(5) of title 23, United States Code (as added by subsection (b)) to carry out section 148 of that title, only if, not later than October 1 of the second fiscal year after the date of enactment of this Act, a State has developed and implemented a State strategic highway safety plan as required under section 148(c) of that title.

      (2) INTERIM PERIOD-

        (A) IN GENERAL- Before October 1 of the second fiscal year after the date of enactment of this Act and until the date on which a State develops and implements a State strategic highway safety plan, the Secretary shall apportion funds to a State for the highway safety improvement program and the State may obligate funds apportioned to the State for the highway safety improvement program under section 148 for projects that were eligible for funding under sections 130 and 152 of that title, as in effect on the day before the date of enactment of this Act.

        (B) NO STRATEGIC HIGHWAY SAFETY PLAN- If a State has not developed a strategic highway safety plan by October 1 of the second fiscal year after the date of enactment of this Act, but demonstrates to the satisfaction of the Secretary that progress is being made toward developing and implementing such a plan, the Secretary shall continue to apportion funds for 1 additional fiscal year for the highway safety improvement program under section 148 of title 23, United States Code, to the State, and the State may continue to obligate funds apportioned to the State under this section for projects that were eligible for funding under sections 130 and 152 of that title, as in effect on the day before the date of enactment of this Act.

        (C) PENALTY- If a State has not adopted a strategic highway safety plan by the date that is 2 years after the date of enactment of this Act, funds made available to the State under section 1101(6) shall be redistributed to other States in accordance with section 104(b)(3) of title 23, United States Code.

SEC. 1402. OPERATION LIFESAVER.

    Section 104(d)(1) of title 23, United States Code, is amended--

      (1) by striking ‘subsection (b)(3)’ and inserting ‘subsection (b)(5)’; and

      (2) by striking ‘$500,000’ and inserting ‘$600,000’.

SEC. 1403. LICENSE SUSPENSION.

    Section 164(a) of title 23, United States Code, is amended by striking paragraph (3) and inserting the following:

      ‘(3) LICENSE SUSPENSION- The term ‘license suspension’ means--

        ‘(A) the suspension of all driving privileges of an individual for the duration of the suspension period; or

        ‘(B) a combination of suspension of all driving privileges of an individual for the first 90 days of the suspension period, followed by reinstatement of limited driving privileges requiring the individual to operate only motor vehicles equipped with an ignition interlock system or other device approved by the Secretary during the remainder of the suspension period.’.

SEC. 1404. BUS AXLE WEIGHT EXEMPTION.

    Section 1023 of the Intermodal Surface Transportation Efficiency Act of 1991 (23 U.S.C. 127 note; 105 Stat. 1951) is amended by striking subsection (h) and inserting the following:

    ‘(h) OVER-THE-ROAD BUS AND PUBLIC TRANSIT VEHICLE EXEMPTION-

      ‘(1) IN GENERAL- The second sentence of section 127 of title 23, United States Code (relating to axle weight limitations for vehicles using the Dwight D. Eisenhower System of Interstate and Defense Highways), shall not apply to--

        ‘(A) any over-the-road bus (as defined in section 301 of the Americans With Disabilities Act of 1990 (42 U.S.C. 12181)); or

        ‘(B) any vehicle that is regularly and exclusively used as an intrastate public agency transit passenger bus.

      ‘(2) STATE ACTION- No State or political subdivision of a State, or any political authority of 2 or more States, shall impose any axle weight limitation on any vehicle described in paragraph (1) in any case in which such a vehicle is using the Dwight D. Eisenhower System of Interstate and Defense Highways.’.

SEC. 1405. SAFE ROUTES TO SCHOOLS PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter I of title 23, United States Code, is amended by inserting after section 149 the following:

‘Sec. 150. Safe routes to schools program

    ‘(a) DEFINITIONS- In this section:

      ‘(1) PRIMARY AND SECONDARY SCHOOL- The term ‘primary and secondary school’ means a school that provides education to children in any of grades kindergarten through 12.

      ‘(2) PROGRAM- The term ‘program’ means the safe routes to schools program established under subsection (b).

      ‘(3) VICINITY OF A SCHOOL- The term ‘vicinity of a school’ means the area within 2 miles of a primary or secondary school.

    ‘(b) ESTABLISHMENT- The Secretary shall establish and carry out a safe routes to school program for the benefit of children in primary and secondary schools in accordance with this section.

    ‘(c) PURPOSES- The purposes of the program shall be--

      ‘(1) to enable and to encourage children to walk and bicycle to school;

      ‘(2) to encourage a healthy and active lifestyle by making walking and bicycling to school safer and more appealing transportation alternatives; and

      ‘(3) to facilitate the planning, development, and implementation of projects and activities that will improve safety in the vicinity of schools.

    ‘(d) ELIGIBLE RECIPIENTS- A State shall use amounts apportioned under this section to provide financial assistance to State, regional, and local agencies that demonstrate an ability to meet the requirements of this section.

    ‘(e) ELIGIBLE PROJECTS AND ACTIVITIES-

      ‘(1) INFRASTRUCTURE-RELATED PROJECTS-

        ‘(A) IN GENERAL- Amounts apportioned to a State under this section may be used for the planning, design, and construction of infrastructure-related projects to encourage walking and bicycling to school, including--

          ‘(i) sidewalk improvements;

          ‘(ii) traffic calming and speed reduction improvements;

          ‘(iii) pedestrian and bicycle crossing improvements;

          ‘(iv) on-street bicycle facilities;

          ‘(v) off-street bicycle and pedestrian facilities;

          ‘(vi) secure bicycle parking facilities;

          ‘(vii) traffic signal improvements; and

          ‘(viii) pedestrian-railroad grade crossing improvements.

        ‘(B) LOCATION OF PROJECTS- Infrastructure-related projects under subparagraph (A) may be carried out on--

          ‘(i) any public road in the vicinity of a school; or

          ‘(ii) any bicycle or pedestrian pathway or trail in the vicinity of a school.

      ‘(2) BEHAVIORAL ACTIVITIES-

        ‘(A) IN GENERAL- In addition to projects described in paragraph (1), amounts apportioned to a State under this section may be used for behavioral activities to encourage walking and bicycling to school, including--

          ‘(i) public awareness campaigns and outreach to press and community leaders;

          ‘(ii) traffic education and enforcement in the vicinity of schools; and

          ‘(iii) student sessions on bicycle and pedestrian safety, health, and environment.

        ‘(B) ALLOCATION- Of the amounts apportioned to a State under this section for a fiscal year, not less than 10 percent shall be used for behavioral activities under this paragraph.

    ‘(f) FUNDING-

      ‘(1) SET ASIDE- Before apportioning amounts to carry out section 148 for a fiscal year, the Secretary shall set aside and use $70,000,000 to carry out this section.

      ‘(2) APPORTIONMENT- Amounts made available to carry out this section shall be apportioned to States in accordance with section 104(b)(5).

      ‘(3) ADMINISTRATION OF AMOUNTS- Amounts apportioned to a State under this section shall be administered by the State transportation department.

      ‘(4) FEDERAL SHARE- Except as provided in sections 120 and 130, the Federal share of the cost of a project or activity funded under this section shall be 90 percent.

      ‘(5) PERIOD OF AVAILABILITY- Notwithstanding section 118(b)(2), amounts apportioned under this section shall remain available until expended.’.

    (b) CONFORMING AMENDMENTS- The analysis for subchapter I of chapter 1 of title 23, United States Code is amended by inserting after the item relating to section 149 the following:

      ‘150. Safe routes to school program.’.

SEC. 1406. PURCHASES OF EQUIPMENT.

    (a) IN GENERAL- Section 152 of title 23, United States Code is amended to read as follows:

‘Sec. 152. Purchases of equipment

    ‘(a) IN GENERAL- Subject to subsection (b), a State carrying out a project under this chapter shall purchase device, tool or other equipment needed for the project only after completing and providing a written analysis demonstrating the cost savings associated with purchasing the equipment compared with renting the equipment from a qualified equipment rental provider before the project commences

    ‘(b) APPLICABILITY- This section shall apply to--

      ‘(1) earth moving, road machinery, and material handling equipment, or any other item, with a purchase price in excess of $75,000; and

      ‘(2) aerial work platforms with a purchase price in excess of $25,000.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code, is amended by striking the item relating to section 152 and inserting the following:

      ‘152. Purchases of equipment.’.

SEC. 1407. WORKZONE SAFETY.

    Section 358(b) of the National Highway System Designation Act of 1995 (109 Stat. 625) is amended by adding at the end the following:

      ‘(7) Recommending all federally-assisted projects in excess of $15,000,000 to enter into contracts only with work zone safety services contractors, traffic control contractors, and trench safety and shoring contractors that carry general liability insurance in an amount not less than $15,000,000.

      ‘(8) Recommending federally-assisted projects the costs of which exceed $15,000,000 to include work zone intelligent transportation systems that are--

        ‘(A) provided by a qualified vendor; and

        ‘(B) monitored continuously.

      ‘(9) Recommending federally-assisted projects to fully fund not less than 5 percent of project costs for work zone safety and temporary traffic control measures, in addition to the cost of the project, which measures shall be provided by a qualified work zone safety or traffic control provider.

      ‘(10) Ensuring that any recommendation made under any of paragraphs (7) through (9) provides for an exemption for applicability to a State, with respect to a project or class of projects, to the extent that a State notifies the Secretary in writing that safety is not expected to be adversely affected by nonapplication of the requirement to the project or class of projects.’.

SEC. 1408. WORKER INJURY PREVENTION AND FREE FLOW OF VEHICULAR TRAFFIC.

    Not later than 1 year after the date of enactment of this Act, the Secretary shall promulgate regulations--

      (1) to decrease the probability of worker injury;

      (2) to maintain the free flow of vehicular traffic by requiring workers whose duties place the workers on, or in close proximity to, a Federal-aid highway (as defined in section 101 of title 23, United States Code) to wear high-visibility clothing; and

      (3) to require such other worker-safety measures for workers described in paragraph (2) as the Secretary determines appropriate.

SEC. 1409. IDENTITY AUTHENTICATION STANDARDS.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1815(a)), is amended by adding at the end the following:

‘Sec. 178. Identity authentication standards

    ‘(a) DEFINITION OF INFORMATION-BASED IDENTITY AUTHENTICATION- In this section, the term ‘information-based identity authentication’ means the determination of the identity of an individual, through the comparison of information provided by a person, with other information pertaining to that individual with a system using scoring models and algorithms.

    ‘(b) STANDARDS- Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Homeland Security and the Federal Motor Carrier Safety Administration, shall promulgate regulations establishing minimum standards for State departments of motor vehicles regarding the use of information-based identity authentication to determine the identity of an applicant for a commercial driver’s license, or the renewal, transfer or upgrading, of a commercial driver’s license.

    ‘(c) MINIMUM STANDARDS- The regulations shall, at a minimum, require State departments of motor vehicles to implement, and applicants for commercial driver’s licenses, (or the renewal, transfer, or upgrading of commercial driver’s licenses), to comply with, reasonable procedures for operating an information-based identity authentication program before issuing, renewing, transferring, or upgrading a commercial driver’s license.

    ‘(d) KEY FACTORS- In promulgating regulations under this section, the Secretary shall require that an information-based identity authentication program carried out under this section establish processes that--

      ‘(1) use multiple sources of matching information;

      ‘(2) enable the measurement of the accuracy of the determination of an applicant’s identity;

      ‘(3) support continuous auditing of compliance with applicable laws, policies, and practices governing the collection, use, and distribution of information in the operation of the program; and

      ‘(4) incorporate industry best practices to protect significant privacy interests in the information used in the program and the appropriate safeguarding of the storage of the information.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter I of title 23, United States Code (as amended by section 1815(b)), is amended by adding at the end the following:

      ‘178. Identity authentication standards.’.

SEC. 1410. OPEN CONTAINER REQUIREMENTS.

    Section 154 of title 23, United States Code, is amended by striking subsection (c) and inserting the following:

    ‘(c) TRANSFER OF FUNDS-

      ‘(1) IN GENERAL- The Secretary shall withhold the applicable percentage for the fiscal year of the amount required to be apportioned for Federal-aid highways to any State under each of paragraphs (1), (3), and (4) of section 104(b), if a State has not enacted or is not enforcing a provision described in subsection (b), as follows:

‘For:

The applicable percentage is:

Fiscal year 2008


2 percent.

Fiscal year 2009


2 percent.

Fiscal year 2010


2 percent.

Fiscal year 2011 and each subsequent fiscal year


2 percent.

      ‘(2) RESTORATION- If (during the 4-year period beginning on the date the apportionment for any State is reduced in accordance with this subsection) the Secretary determines that the State has enacted and is enforcing a provision described in subsection (b), the apportionment of the State shall be increased by an amount equal to the amount of the reduction made during the 4-year period.’.

Subtitle E--Environmental Planning and Review

CHAPTER 1--TRANSPORTATION PLANNING

SEC. 1501. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO STATE AND METROPOLITAN TRANSPORTATION PLANNING.

    (a) METROPOLITAN PLANNING- Section 134(f) of title 23, United States Code, is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (D)--

          (i) by inserting after ‘environment’ the following: ‘(including the protection of habitat, water quality, and agricultural and forest land, while minimizing invasive species)’; and

          (ii) by inserting before the semicolon the following: ‘(including minimizing adverse health effects from mobile source air pollution and promoting the linkage of the transportation and development goals of the metropolitan area)’; and

        (B) in subparagraph (G), by inserting ‘and efficient use’ after ‘preservation’;

      (2) by redesignating paragraph (2) as paragraph (3); and

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

      ‘(2) SELECTION OF FACTORS- After soliciting and considering any relevant public comments, the metropolitan planning organization shall determine which of the factors described in paragraph (1) are most appropriate for the metropolitan area to consider.’.

    (b) STATEWIDE PLANNING- Section 135(c) of title 23, United States Code, is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (D)--

          (i) by inserting after ‘environment’ the following: ‘(including the protection of habitat, water quality, and agricultural and forest land, while minimizing invasive species)’; and

          (ii) by inserting before the semicolon the following: ‘(including minimizing adverse health effects from mobile source air pollution and promoting the linkage of the transportation and development goals of the State)’; and

        (B) in subparagraph (G), by inserting ‘and efficient use’ after ‘preservation’;

      (2) by redesignating paragraph (2) as paragraph (3); and

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

      ‘(2) SELECTION OF PROJECTS AND STRATEGIES- After soliciting and considering any relevant public comments, the State shall determine which of the projects and strategies described in paragraph (1) are most appropriate for the State to consider.’.

SEC. 1502. CONSULTATION BETWEEN TRANSPORTATION AGENCIES AND RESOURCE AGENCIES IN TRANSPORTATION PLANNING.

    (a) IN GENERAL- Section 134(g) of title 23, United States Code, is amended--

      (1) in paragraph (2)--

        (A) by redesignating subparagraphs (B) through (D) as subparagraphs (C) through (E), respectively; and

        (B) by inserting after subparagraph (A) the following:

        ‘(B) MITIGATION ACTIVITIES-

          ‘(i) IN GENERAL- A long-range transportation plan shall include a discussion of--

            ‘(I) types of potential habitat, hydrological, and environmental mitigation activities that may assist in compensating for loss of habitat, wetland, and other environmental functions; and

            ‘(II) potential areas to carry out these activities, including a discussion of areas that may have the greatest potential to restore and maintain the habitat types and hydrological or environmental functions affected by the plan.

          ‘(ii) CONSULTATION- The discussion shall be developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies.’;

      (2) by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively; and

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

      ‘(4) CONSULTATION-

        ‘(A) IN GENERAL- In each metropolitan area, the metropolitan planning organization shall consult, as appropriate, with State and local agencies responsible for land use management, natural resources, environmental protection, conservation, and historic preservation concerning the development of a long-range transportation plan.

        ‘(B) ISSUES- The consultation shall involve--

          ‘(i) comparison of transportation plans with State conservation plans or with maps, if available;

          ‘(ii) comparison of transportation plans to inventories of natural or historic resources, if available; or

          ‘(iii) consideration of areas where wildlife crossing structures may be needed to ensure connectivity between wildlife habitat linkage areas.’.

    (b) IMPROVED CONSULTATION DURING STATE TRANSPORTATION PLANNING-

      (1) IN GENERAL- Section 135(e)(2) of title 23, United States Code, is amended by adding at the end the following:

        ‘(D) CONSULTATION, COMPARISON, AND CONSIDERATION-

          ‘(i) IN GENERAL- The long-range transportation plan shall be developed, as appropriate, in consultation with State and local agencies responsible for--

            ‘(I) land use management;

            ‘(II) natural resources;

            ‘(III) environmental protection;

            ‘(IV) conservation; and

            ‘(V) historic preservation.

          ‘(ii) COMPARISON AND CONSIDERATION- Consultation under clause (i) shall involve--

            ‘(I) comparison of transportation plans to State conservation plans or maps, if available;

            ‘(II) comparison of transportation plans to inventories of natural or historic resources, if available; or

            ‘(III) consideration of areas where wildlife crossing structures may be needed to ensure connectivity between wildlife habitat linkage areas.’.

      (2) ADDITIONAL REQUIREMENTS- Section 135(e) of title 23, United States Code, is amended--

        (A) by redesignating paragraphs (4) and (5) as paragraphs (6) and (7), respectively; and

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

      ‘(4) MITIGATION ACTIVITIES-

        ‘(A) IN GENERAL- A long-range transportation plan shall include a discussion of--

          ‘(i) types of potential habitat, hydrological, and environmental mitigation activities that may assist in compensating for loss of habitat, wetlands, and other environmental functions; and

          ‘(ii) potential areas to carry out these activities, including a discussion of areas that may have the greatest potential to restore and maintain the habitat types and hydrological or environmental functions affected by the plan.

        ‘(B) CONSULTATION- The discussion shall be developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies.

      ‘(5) TRANSPORTATION STRATEGIES- A long-range transportation plan shall identify transportation strategies necessary to efficiently serve the mobility needs of people.’.

SEC. 1503. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO TRANSPORTATION PROJECT PLANNING.

    Section 109(c)(2) of title 23, United States Code, is amended--

      (1) by striking ‘consider the results’ and inserting ‘consider--

        ‘(A) the results’;

      (2) by striking the period at the end and inserting a semicolon; and

      (3) by adding at the end the following:

        ‘(B) the publication entitled ‘Flexibility in Highway Design’ of the Federal Highway Administration;

        ‘(C) ‘Eight Characteristics of Process to Yield Excellence and the Seven Qualities of Excellence in Transportation Design’ developed by the conference held during 1998 entitled ‘Thinking Beyond the Pavement National Workshop on Integrating Highway Development with Communities and the Environment while Maintaining Safety and Performance’; and

        ‘(D) any other material that the Secretary determines to be appropriate.’.

SEC. 1504. PUBLIC INVOLVEMENT IN TRANSPORTATION PLANNING AND PROJECTS.

    (a) METROPOLITAN PLANNING-

      (1) PARTICIPATION BY INTERESTED PARTIES- Section 134(g)(5) of title 23, United States Code (as redesignated by section 1502(a)(1)), is amended--

        (A) by striking ‘Before approving’ and inserting the following:

        ‘(A) IN GENERAL- Before approving’; and

        (B) by adding at the end the following:

        ‘(B) METHODS- In carrying out subparagraph (A), the metropolitan planning organization shall, to the maximum extent practicable--

          ‘(i) hold any public meetings at convenient and accessible locations and times;

          ‘(ii) employ visualization techniques to describe plans; and

          ‘(iii) make public information available in electronically accessible format and means, such as the World Wide Web.’.

      (2) PUBLICATION OF LONG-RANGE TRANSPORTATION PLANS- Section 134(g)(6)(i) of title 23, United States Code (as redesignated by section 1502(a)(1)), is amended by inserting before the semicolon the following: ‘, including (to the maximum extent practicable) in electronically accessible formats and means such as the World Wide Web’.

    (b) STATEWIDE PLANNING-

      (1) PARTICIPATION BY INTERESTED PARTIES- Section 135(e)(3) of title 23, United States Code, is amended by striking subparagraph (B) and inserting the following:

        ‘(B) METHODS- In carrying out subparagraph (A), the State shall, to the maximum extent practicable--

          ‘(i) hold any public meetings at convenient and accessible locations and times;

          ‘(ii) employ visualization techniques to describe plans; and

          ‘(iii) make public information available in electronically accessible format and means, such as the World Wide Web.’.

      (2) PUBLICATION OF LONG-RANGE TRANSPORTATION PLANS- Section 135(e) of title 23, United States Code (as amended by section 1502(b)(2)), is amended by adding at the end the following:

      ‘(8) PUBLICATION OF LONG-RANGE TRANSPORTATION PLANS- Each long-range transportation plan prepared by a State shall be published or otherwise made available, including (to the maximum extent practicable) in electronically accessible formats and means, such as the World Wide Web.’.

SEC. 1505. PROJECT MITIGATION.

    (a) MITIGATION FOR NATIONAL HIGHWAY SYSTEM PROJECTS- Section 103(b)(6)(M) of title 23, United States Code, is amended--

      (1) by inserting ‘(i)’ after ‘(M); and

      (2) by adding at the end the following:

        ‘(ii) State habitat, streams, and wetlands mitigation efforts under section 155.’.

    (b) MITIGATION FOR SURFACE TRANSPORTATION PROGRAM PROJECTS- Section 133(b)(11) of title 23, United States Code, is amended--

      (1) by inserting ‘(A)’ after ‘(11)’; and

      (2) by adding at the end the following:

      ‘(B) State habitat, streams, and wetlands mitigation efforts under section 155.’.

    (c) STATE HABITAT, STREAMS, AND WETLANDS MITIGATION FUNDS- Section 155 of title 23, United States Code, is amended to read as follows:

‘Sec. 155. State habitat, streams, and wetlands mitigation funds

    ‘(a) ESTABLISHMENT- A State should establish a habitat, streams, and wetlands mitigation fund (referred to in this section as a ‘State fund’).

    ‘(b) PURPOSE- The purpose of a State fund is to encourage efforts for habitat, streams, and wetlands mitigation in advance of or in conjunction with highway or transit projects to--

      ‘(1) ensure that the best habitat, streams, and wetland mitigation sites now available are used; and

      ‘(2) accelerate transportation project delivery by making high-quality habitat, streams, and wetland mitigation credits available when needed.

    ‘(c) FUNDS- A State may deposit into a State fund part of the funds apportioned to the State under--

      ‘(1) section 104(b)(1) for the National Highway System; and

      ‘(2) section 104(b)(3) for the surface transportation program.

    ‘(d) USE-

      ‘(1) IN GENERAL- Amounts deposited in a State fund shall be used (in a manner consistent with this section) for habitat, streams, or wetlands mitigation related to 1 or more projects funded under this title, including a project under the transportation improvement program of the State developed under section 135(f).

      ‘(2) ENDANGERED SPECIES- In carrying out this section, a State and cooperating agency shall give consideration to mitigation projects, on-site or off-site, that restore and preserve the best available sites to conserve biodiversity and habitat for--

        ‘(A) Federal or State listed threatened or endangered species of plants and animals; and

        ‘(B) plant or animal species warranting listing as threatened or endangered, as determined by the Secretary of the Interior in accordance with section 4(b)(3)(B) of the Endangered Species Act of 1973 (16 U.S.C. 1533(b)(3)(B)).

    ‘(e) CONSISTENCY WITH APPLICABLE REQUIREMENTS- Contributions from the State fund to mitigation efforts may occur in advance of project construction only if the efforts are consistent with all applicable requirements of Federal law (including regulations).’.

    (d) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code, is amended by striking the item relating to section 155 and inserting the following:

      ‘155. State habitat, streams, and wetlands mitigation funds.’.

CHAPTER 2--TRANSPORTATION PROJECT DEVELOPMENT PROCESS

SEC. 1511. TRANSPORTATION PROJECT DEVELOPMENT PROCESS.

    (a) IN GENERAL- Chapter 3 of title 23, United States Code (as amended by section 1203(a)), is amended by inserting after section 325 the following:

‘Sec. 326. Transportation project development process

    ‘(a) DEFINITIONS- In this section:

      ‘(1) AGENCY- The term ‘agency’ means any agency, department, or other unit of Federal, State, local, or federally recognized tribal government.

      ‘(2) ENVIRONMENTAL IMPACT STATEMENT- The term ‘environmental impact statement’ means a detailed statement of the environmental impacts of a project required to be prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

      ‘(3) ENVIRONMENTAL REVIEW PROCESS-

        ‘(A) IN GENERAL- The term ‘environmental review process’ means the process for preparing, for a project--

          ‘(i) an environmental impact statement; or

          ‘(ii) any other document or analysis required to be prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

        ‘(B) INCLUSIONS- The term ‘environmental review process’ includes the process for and completion of any environmental permit, approval, review, or study required for a project under any Federal law other than the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

      ‘(4) PROJECT- The term ‘project’ means any highway or transit project that requires the approval of the Secretary.

      ‘(5) PROJECT SPONSOR- The term ‘project sponsor’ means an agency or other entity (including any private or public-private entity), that seeks approval of the Secretary for a project.

      ‘(6) STATE TRANSPORTATION DEPARTMENT- The term ‘State transportation department’ means any statewide agency of a State with responsibility for transportation.

    ‘(b) PROCESS-

      ‘(1) LEAD AGENCY-

        ‘(A) IN GENERAL- The Department of Transportation shall be the lead Federal agency in the environmental review process for a project.

        ‘(B) JOINT LEAD AGENCIES- Nothing in this section precludes another agency from being a joint lead agency in accordance with regulations under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

        ‘(C) CONCURRENCE OF PROJECT SPONSOR- The lead agency may carry out the environmental review process in accordance with this section only with the concurrence of the project sponsor.

      ‘(2) REQUEST FOR PROCESS-

        ‘(A) IN GENERAL- A project sponsor may request that the lead agency carry out the environmental review process for a project or group of projects in accordance with this section.

        ‘(B) GRANT OF REQUEST; PUBLIC NOTICE- The lead agency shall--

          ‘(i) grant a request under subparagraph (A); and

          ‘(ii) provide public notice of the request.

      ‘(3) EFFECTIVE DATE- The environmental review process described in this section may be applied to a project only after the date on which public notice is provided under subparagraph (B)(ii).

    ‘(c) ROLES AND RESPONSIBILITY OF LEAD AGENCY- With respect to the environmental review process for any project, the lead agency shall have authority and responsibility to--

        ‘(A) identify and invite cooperating agencies in accordance with subsection (d);

        ‘(B) develop an agency coordination plan with review, schedule, and timelines in accordance with subsection (e);

        ‘(C) determine the purpose and need for the project in accordance with subsection (f);

        ‘(D) determine the range of alternatives to be considered in accordance with subsection (g);

        ‘(E) convene dispute-avoidance and decision resolution meetings and related efforts in accordance with subsection (h);

        ‘(F) take such other actions as are necessary and proper, within the authority of the lead agency, to facilitate the expeditious resolution of the environmental review process for the project; and

        ‘(G) prepare or ensure that any required environmental impact statement or other document required to be completed under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) is completed in accordance with this section and applicable Federal law.

    ‘(d) ROLES AND RESPONSIBILITIES OF COOPERATING AGENCIES-

      ‘(1) IN GENERAL- With respect to a project, each Federal agency shall carry out any obligations of the Federal agency in the environmental review process in accordance with this section and applicable Federal law.

      ‘(2) INVITATION-

        ‘(A) IN GENERAL- The lead agency shall--

          ‘(i) identify, as early as practicable in the environmental review process for a project, any other agencies that may have an interest in the project, including--

            ‘(I) agencies with jurisdiction over environmentally-related matters that may affect the project or may be required by law to conduct an environmental-related independent review or analysis of the project or determine whether to issue an environmental-related permit, license, or approval for the project; and

            ‘(II) agencies with special expertise relevant to the project;

          ‘(ii) invite the agencies identified in clause (i) to become participating agencies in the environmental review process for that project; and

          ‘(iii) grant requests to become cooperating agencies from agencies not originally invited.

        ‘(B) RESPONSES- The deadline for receipt of a response from an agency that receives an invitation under subparagraph (A)(ii)--

          ‘(i) shall be 30 days after the date of receipt by the agency of the invitation; but

          ‘(ii) may be extended by the lead agency for good cause.

      ‘(3) DECLINING OF INVITATIONS- A Federal agency that is invited by the lead agency to participate in the environmental review process for a project shall be designated as a cooperating agency by the lead agency, unless the invited agency informs the lead agency in writing, by the deadline specified in the invitation, that the invited agency--

        ‘(A) has no jurisdiction or authority with respect to the project;

        ‘(B) has no expertise or information relevant to the project; and

        ‘(C) does not intend to submit comments on the project.

      ‘(4) EFFECT OF DESIGNATION- Designation as a cooperating agency under this subsection shall not imply that the cooperating agency--

        ‘(A) supports a proposed project; or

        ‘(B) has any jurisdiction over, or special expertise with respect to evaluation of, the project.

      ‘(5) DESIGNATIONS FOR CATEGORIES OF PROJECTS-

        ‘(A) IN GENERAL- The Secretary may invite other agencies to become cooperating agencies for a category of projects.

        ‘(B) DESIGNATION- An agency may be designated as a cooperating agency for a category of projects only with the consent of the agency.

      ‘(6) CONCURRENT REVIEWS- Each Federal agency shall, to the maximum extent practicable--

        ‘(A) carry out obligations of the Federal agency under other applicable law concurrently, and in conjunction, with the review required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), unless doing so would impair the ability of the Federal agency to carry out those obligations; and

        ‘(B) formulate and implement administrative, policy, and procedural mechanisms to enable the agency to ensure completion of the environmental review process in a timely, coordinated, and environmentally responsible manner.

    ‘(e) DEVELOPMENT OF FLEXIBLE PROCESS AND TIMELINE-

      ‘(1) COORDINATION PLAN-

        ‘(A) IN GENERAL- The lead agency shall establish a coordination plan, which may be incorporated into a memorandum of understanding, to coordinate agency and public participation in and comment on the environmental review process for a project or category of projects.

        ‘(B) WORKPLAN-

          ‘(i) IN GENERAL- The lead agency shall develop, as part of the coordination plan, a workplan for completing the collection, analysis, and evaluation of baseline data and future impacts modeling necessary to complete the environmental review process, including any data, analyses, and modeling necessary for related permits, approvals, reviews, or studies required for the project under other laws.

          ‘(ii) CONSULTATION- In developing the workplan under clause (i), the lead agency shall consult with--

            ‘(I) each cooperating agency for the project;

            ‘(II) the State in which the project is located; and

            ‘(III) if the State is not the project sponsor, the project sponsor.

        ‘(C) SCHEDULE-

          ‘(i) IN GENERAL- The lead agency shall establish as part of the coordination plan, after consultation with each cooperating agency for the project and with the State in which the project is located (and, if the State is not the project sponsor, with the project sponsor), a schedule for completion of the environmental review process for the project.

          ‘(ii) FACTORS FOR CONSIDERATION- In establishing the schedule, the lead agency shall consider factors such as--

            ‘(I) the responsibilities of cooperating agencies under applicable laws;

            ‘(II) resources available to the cooperating agencies;

            ‘(III) overall size and complexity of a project;

            ‘(IV) the overall schedule for and cost of a project; and

            ‘(V) the sensitivity of the natural and historic resources that could be affected by the project.

        ‘(D) CONSISTENCY WITH OTHER TIME PERIODS- A schedule under subparagraph (C) shall be consistent with any other relevant time periods established under Federal law.

        ‘(E) MODIFICATION- The lead agency may--

          ‘(i) lengthen a schedule established under subparagraph (C) for good cause; and

          ‘(ii) shorten a schedule only with the concurrence of the affected cooperating agencies.

        ‘(F) DISSEMINATION- A copy of a schedule under subparagraph (C), and of any modifications to the schedule, shall be--

          ‘(i) provided to all cooperating agencies and to the State transportation department of the State in which the project is located (and, if the State is not the project sponsor, to the project sponsor); and

          ‘(ii) made available to the public.

      ‘(2) COMMENTS AND TIMELINES-

        ‘(A) IN GENERAL- A schedule established under paragraph (1)(C) shall include--

          ‘(i) opportunities for comment, deadline for receipt of any comments submitted, deadline for lead agency response to comments; and

          ‘(ii) except as otherwise provided under paragraph (1)--

            ‘(I) an opportunity to comment by agencies and the public on a draft or final environmental impact statement for a period of not more than 60 days longer than the minimum period required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and

            ‘(II) for all other comment periods established by the lead agency for agency or public comments in the environmental review process, a period of not more than the longer of--

‘(aa) 30 days after the final day of the minimum period required under Federal law (including regulations), if available; or

‘(bb) if a minimum period is not required under Federal law (including regulations), 30 days.

        ‘(B) EXTENSION OF COMMENT PERIODS- The lead agency may extend a period of comment established under this paragraph for good cause.

        ‘(C) LATE COMMENTS- A comment concerning a project submitted under this paragraph after the date of termination of the applicable comment period or extension of a comment period shall not be eligible for consideration by the lead agency unless the lead agency or project sponsor determines there was good cause for the delay or the lead agency is required to consider significant new circumstances or information in accordance with sections 1501.7 and 1502.9 of title 40, Code of Federal Regulations.

        ‘(D) DEADLINES FOR DECISIONS UNDER OTHER LAWS- In any case in which a decision under any Federal law relating to a project (including the issuance or denial of a permit or license) is required to be made by the later of the date that is 180 days after the date on which the Secretary made all final decisions of the lead agency with respect to the project, or 180 days after the date on which an application was submitted for the permit or license, 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--

          ‘(i) as soon as practicable after the 180-day period, an initial notice of the failure of the Federal agency to make the decision; and

          ‘(ii) every 60 day thereafter until such date as all decisions of the Federal agency relating to the project have been made by the Federal agency, an additional notice that describes the number of decisions of the Federal agency that remain outstanding as of the date of the additional notice.

      ‘(3) INVOLVEMENT OF THE PUBLIC- Nothing in this subsection shall reduce any time period provided for public comment in the environmental review process under existing Federal law (including a regulation).

    ‘(f) DEVELOPMENT OF PROJECT PURPOSE AND NEED STATEMENT-

      ‘(1) IN GENERAL- With respect to the environmental review process for a project, the purpose and need for the project shall be defined in accordance with this subsection.

      ‘(2) AUTHORITY- The lead agency shall define the purpose and need for a project, including the transportation objectives and any other objectives intended to be achieved by the project.

      ‘(3) INVOLVEMENT OF COOPERATING AGENCIES AND THE PUBLIC- Before determining the purpose and need for a project, the lead agency shall solicit for 30 days, and consider, any relevant comments on the draft statement of purpose and need for a proposed project received from the public and cooperating agencies.

      ‘(4) EFFECT ON OTHER REVIEWS- For the purpose of compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and any other law requiring an agency that is not the lead agency to determine or consider a project purpose or project need, such an agency acting, permitting, or approving under, or otherwise applying, Federal law with respect to a project shall adopt the determination of purpose and need for the project made by the lead agency.

      ‘(5) SAVINGS- Nothing in this subsection preempts or interferes with any power, jurisdiction, responsibility, or authority of an agency under applicable law (including regulations) with respect to a project.

      ‘(6) CONTENTS-

        ‘(A) IN GENERAL- The statement of purpose and need shall include a clear statement of the objectives that the proposed project is intended to achieve.

        ‘(B) EFFECT ON EXISTING STANDARDS- Nothing in this subsection shall alter existing standards for defining the purpose and need of a project.

      ‘(7) FACTORS TO CONSIDER- The lead agency may determine that any of the following factors and documents are appropriate for consideration in determining the purpose of and need for a project:

        ‘(A) Transportation plans and related planning documents developed through the statewide and metropolitan transportation planning process under sections 134 and 135.

        ‘(B) Land use plans adopted by units of State, local, or tribal government (or, in the case of Federal land, by the applicable Federal land management agencies).

        ‘(C) Economic development plans adopted by--

          ‘(i) units of State, local, or tribal government; or

          ‘(ii) established economic development planning organizations or authorities.

        ‘(D) Environmental protection plans, including plans for the protection or treatment of--

          ‘(i) air quality;

          ‘(ii) water quality and runoff;

          ‘(iii) habitat needs of plants and animals;

          ‘(iv) threatened and endangered species;

          ‘(v) invasive species;

          ‘(vi) historic properties; and

          ‘(vii) other environmental resources.

        ‘(E) Any publicly available plans or policies relating to the national defense, national security, or foreign policy of the United States.

    ‘(g) DEVELOPMENT OF PROJECT ALTERNATIVES-

      ‘(1) IN GENERAL- With respect to the environmental review process for a project, the alternatives shall be determined in accordance with this subsection.

      ‘(2) AUTHORITY- The lead agency shall determine the alternatives to be considered for a project.

      ‘(3) INVOLVEMENT OF COOPERATING AGENCIES AND THE PUBLIC-

        ‘(A) IN GENERAL- Before determining the alternatives for a project, the lead agency shall solicit for 30 days and consider any relevant comments on the proposed alternatives received from the public and cooperating agencies.

        ‘(B) ALTERNATIVES- The lead agency shall consider--

          ‘(i) alternatives that meet the purpose and need of the project; and

          ‘(ii) the alternative of no action.

        ‘(C) EFFECT ON EXISTING STANDARDS- Nothing in this subsection shall alter the existing standards for determining the range of alternatives.

      ‘(4) EFFECT ON OTHER REVIEWS- Any other agency acting under or applying Federal law with respect to a project shall consider only the alternatives determined by the lead agency.

      ‘(5) SAVINGS- Nothing in this subsection preempts or interferes with any power, jurisdiction, responsibility, or authority of an agency under applicable law (including regulations) with respect to a project.

      ‘(6) FACTORS TO CONSIDER- The lead agency may determine that any of the following factors and documents are appropriate for consideration in determining the alternatives for a project:

        ‘(A) The overall size and complexity of the proposed action.

        ‘(B) The sensitivity of the potentially affected resources.

        ‘(C) The overall schedule and cost of the project.

        ‘(D) Transportation plans and related planning documents developed through the statewide and metropolitan transportation planning process under sections 134 and 135 of title 23 of the United States Code.

        ‘(E) Land use plans adopted by units of State, local, or tribal government (or, in the case of Federal land, by the applicable Federal land management agencies).

        ‘(F) Economic development plans adopted by--

          ‘(i) units of State, local, or tribal government; or

          ‘(ii) established economic development planning organizations or authorities.

        ‘(G) environmental protection plans, including plans for the protection or treatment of--

          ‘(i) air quality;

          ‘(ii) water quality and runoff;

          ‘(iii) habitat needs of plants and animals;

          ‘(iv) threatened and endangered species;

          ‘(v) invasive species;

          ‘(vi) historic properties; and

          ‘(vii) other environmental resources.

        ‘(H) Any publicly available plans or policies relating to the national defense, national security, or foreign policy of the United States.

    ‘(h) PROMPT ISSUE IDENTIFICATION AND RESOLUTION PROCESS-

      ‘(1) IN GENERAL- The lead agency, the project sponsor, and the cooperating agencies shall work cooperatively, in accordance with this section, to identify and resolve issues that could--

        ‘(A) delay completion of the environmental review process; or

        ‘(B) result in denial of any approvals required for the project under applicable laws.

      ‘(2) LEAD AGENCY RESPONSIBILITIES-

        ‘(A) IN GENERAL- The lead agency, with the assistance of the project sponsor, shall make information available to the cooperating agencies, as early as practicable in the environmental review process, regarding--

          ‘(i) the environmental and socioeconomic resources located within the project area; and

          ‘(ii) the general locations of the alternatives under consideration.

        ‘(B) BASIS FOR INFORMATION- Information about resources in the project area may be based on existing data sources, including geographic information systems mapping.

      ‘(3) COOPERATING AGENCY RESPONSIBILITIES-

        ‘(A) IN GENERAL- Based on information received from the lead agency, cooperating agencies shall promptly identify to the lead agency any major issues of concern regarding the potential environmental or socioeconomic impacts of a project.

        ‘(B) MAJOR ISSUES OF CONCERN- A major issue of concern referred to in subparagraph (A) may include any issue that could substantially delay or prevent an agency from granting a permit or other approval that is needed for a project, as determined by a cooperating agency.

      ‘(4) ISSUE RESOLUTION- On identification of a major issue of concern under paragraph (3), or at any time upon the request of a project sponsor or the Governor of a State, the lead agency shall promptly convene a meeting with representatives of each of the relevant cooperating agencies, the project sponsor, and the Governor to address and resolve the issue.

      ‘(5) NOTIFICATION- If a resolution of a major issue of concern under paragraph (4) cannot be achieved by the date that is 30 days after the date on which a meeting under that paragraph is convened, the lead agency shall provide notification of the failure to resolve the major issue of concern to--

        ‘(A) the heads of all cooperating agencies;

        ‘(B) the project sponsor;

        ‘(C) the Governor involved;

        ‘(D) the Committee on Environment and Public Works of the Senate; and

        ‘(E) the Committee on Transportation and Infrastructure of the House of Representatives.

    ‘(i) PERFORMANCE MEASUREMENT-

      ‘(1) PROGRESS REPORTS- The Secretary shall establish a program to measure and report on progress toward improving and expediting the planning and environmental review process.

      ‘(2) MINIMUM REQUIREMENTS- The program shall include, at a minimum--

        ‘(A) the establishment of criteria for measuring consideration of--

          ‘(i) State and metropolitan planning, project planning, and design criteria; and

          ‘(ii) environmental processing times and costs;

        ‘(B) the collection of data to assess performance based on the established criteria; and

        ‘(C) the annual reporting of the results of the performance measurement studies.

      ‘(3) INVOLVEMENT OF THE PUBLIC AND COOPERATING AGENCIES-

        ‘(A) IN GENERAL- The Secretary shall biennially conduct a survey of agencies participating in the environmental review process under this section to assess the expectations and experiences of each surveyed agency with regard to the planning and environmental review process for projects reviewed under this section.

        ‘(B) PUBLIC PARTICIPATION- In conducting the survey, the Secretary shall solicit comments from the public.

    ‘(j) ASSISTANCE TO AFFECTED FEDERAL AND STATE AGENCIES-

      ‘(1) IN GENERAL- The Secretary may approve a request by a State or recipient to provide funds made available under this title for a highway project, or made available under chapter 53 of title 49 for a mass transit project, to agencies participating in the coordinated environmental review process established under this section in order to provide the resources necessary to meet any time limits established under this section.

      ‘(2) AMOUNTS- Such requests under paragraph (1) shall be approved only--

        ‘(A) for such additional amounts as the Secretary determines are necessary for the affected Federal and State agencies to meet the time limits for environmental review; and

        ‘(B) if those time limits are less than the customary time necessary for that review.

    ‘(k) JUDICIAL REVIEW AND SAVINGS CLAUSE-

      ‘(1) JUDICIAL REVIEW- Nothing in this section shall affect the reviewability of any final Federal agency action in any United States district court or State court.

      ‘(2) SAVINGS CLAUSE- Nothing in this section shall affect--

        ‘(A) the applicability of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal environmental statute; or

        ‘(B) the responsibility of any Federal officer to comply with or enforce such a statute.’.

    (b) CONFORMING AMENDMENTS-

      (1) The analysis for chapter 3 of title 23, United States Code, is amended by inserting after the item relating to section 325 (as added by section 1203(f)) the following:

      ‘326. Transportation project development process.’.

      (2) Section 1309 of the Transportation Equity Act for the 21st Century (112 Stat. 232) is repealed.

SEC. 1512. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL EXCLUSIONS.

    (a) IN GENERAL- Chapter 3 of title 23, United States Code (as amended by section 1511(a)), is amended by inserting after section 326 the following:

‘Sec. 327. Assumption of responsibility for categorical exclusions

    ‘(a) CATEGORICAL EXCLUSION DETERMINATIONS-

      ‘(1) IN GENERAL- The Secretary may assign, and a State may assume, responsibility for determining whether certain designated activities are included within classes of action identified in regulation by the Secretary that are categorically excluded from requirements for environmental assessments or environmental impact statements pursuant to regulations promulgated by the Council on Environmental Quality under part 1500 of title 40, Code of Federal Regulations (as in effect on October 1, 2003).

      ‘(2) SCOPE OF AUTHORITY- A determination described in paragraph (1) shall be made by a State in accordance with criteria established by the Secretary and only for types of activities specifically designated by the Secretary.

      ‘(3) CRITERIA- The criteria under paragraph (2) shall include provisions for public availability of information consistent with section 552 of title 5 and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

    ‘(b) OTHER APPLICABLE FEDERAL LAWS-

      ‘(1) IN GENERAL- If a State assumes responsibility under subsection (a), the Secretary may also assign and the State may assume all or part of the responsibilities of the Secretary for environmental review, consultation, or other related actions required under any Federal law applicable to activities that are classified by the Secretary as categorical exclusions, with the exception of government-to-government consultation with Indian tribes, subject to the same procedural and substantive requirements as would be required if that responsibility were carried out by the Secretary.

      ‘(2) SOLE RESPONSIBILITY- A State that assumes responsibility under paragraph (1) with respect to a Federal law shall be solely responsible and solely liable for complying with and carrying out that law, and the Secretary shall have no such responsibility or liability.

    ‘(c) MEMORANDA OF UNDERSTANDING-

      ‘(1) IN GENERAL- The Secretary and the State, after providing public notice and opportunity for comment, shall enter into a memorandum of understanding setting forth the responsibilities to be assigned under this section and the terms and conditions under which the assignments are made, including establishment of the circumstances under which the Secretary would reassume responsibility for categorical exclusion determinations.

      ‘(2) TERM- A memorandum of understanding--

        ‘(A) shall have term of not more than 3 years; and

        ‘(B) shall be renewable.

      ‘(3) ACCEPTANCE OF JURISDICTION- In a memorandum of understanding, the State shall consent to accept the jurisdiction of the Federal courts for the compliance, discharge, and enforcement of any responsibility of the Secretary that the State assumes.

      ‘(4) MONITORING- The Secretary shall--

        ‘(A) monitor compliance by the State with the memorandum of understanding and the provision by the State of financial resources to carry out the memorandum of understanding; and

        ‘(B) take into account the performance by the State when considering renewal of the memorandum of understanding.

    ‘(d) TERMINATION- 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.

    ‘(e) STATE AGENCY DEEMED TO BE FEDERAL AGENCY- A State agency that is assigned a responsibility under a memorandum of understanding shall be deemed to be a Federal agency for the purposes of the Federal law under which the responsibility is exercised.’.

    (b) CONFORMING AMENDMENT- The analysis for chapter 3 of title 23, United States Code (as amended by section 1511(b)), is amended by inserting after the item relating to section 326 the following:

      ‘327. Assumption of responsibility for categorical exclusions.’.

SEC. 1513. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT PROGRAM.

    (a) IN GENERAL- Chapter 3 of title 23, United States Code (as amended by section 1512(a)), is amended by inserting after section 327 the following:

‘Sec. 328. Surface transportation project delivery pilot program

    ‘(a) ESTABLISHMENT-

      ‘(1) IN GENERAL- The Secretary shall carry out a surface transportation project delivery pilot program (referred to in this section as the ‘program’).

      ‘(2) ASSUMPTION OF RESPONSIBILITY-

        ‘(A) IN GENERAL- Subject to the other provisions of this section, with the written agreement of the Secretary and a State, which may be in the form of a memorandum of understanding, the Secretary may assign, and the State may assume, the responsibilities of the Secretary with respect to 1 or more highway projects within the State under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

        ‘(B) ADDITIONAL RESPONSIBILITY- If a State assumes responsibility under subparagraph (A)--

          ‘(i) the Secretary may assign to the State, and the State may assume, all or part of the responsibilities of the Secretary for environmental review, consultation, or other action required under any Federal environmental law pertaining to the review or approval of a specific project; but

          ‘(ii) the Secretary may not assign--

            ‘(I) responsibility for any conformity determination required under section 176 of the Clean Air Act (42 U.S.C. 7506); or

            ‘(II) any responsibility imposed on the Secretary by section 134 or 135.

        ‘(C) PROCEDURAL AND SUBSTANTIVE REQUIREMENTS- A State shall assume responsibility under this section subject to the same procedural and substantive requirements as would apply if that responsibility were carried out by the Secretary.

        ‘(D) FEDERAL RESPONSIBILITY- Any responsibility of the Secretary not explicitly assumed by the State by written agreement under this section shall remain the responsibility of the Secretary.

        ‘(E) NO EFFECT ON AUTHORITY- Nothing in this section preempts or interferes with any power, jurisdiction, responsibility, or authority of an agency, other than the Department of Transportation, under applicable law (including regulations) with respect to a project.

    ‘(b) STATE PARTICIPATION-

      ‘(1) NUMBER OF PARTICIPATING STATES- The Secretary may permit not more than 5 States (including the State of Oklahoma) to participate in the program.

      ‘(2) APPLICATION- Not later than 270 days after the date of enactment of this section, the Secretary shall promulgate regulations that establish requirements relating to information required to be contained in any application of a State to participate in the program, including, at a minimum--

        ‘(A) the projects or classes of projects for which the State anticipates exercising the authority that may be granted under the program;

        ‘(B) verification of the financial resources necessary to carry out the authority that may be granted under the program; and

        ‘(C) evidence of the notice and solicitation of public comment by the State relating to participation of the State in the program, including copies of comments received from that solicitation.

      ‘(3) PUBLIC NOTICE-

        ‘(A) IN GENERAL- Each State that submits an application under this subsection shall give notice of the intent of the State to participate in the program not later than 30 days before the date of submission of the application.

        ‘(B) METHOD OF NOTICE AND SOLICITATION- The State shall provide notice and solicit public comment under this paragraph by publishing the complete application of the State in accordance with the appropriate public notice law of the State.

      ‘(4) SELECTION CRITERIA- The Secretary may approve the application of a State under this section only if--

        ‘(A) the regulatory requirements under paragraph (2) have been met;

        ‘(B) the Secretary determines that the State has the capability, including financial and personnel, to assume the responsibility; and

        ‘(C) the head of the State agency having primary jurisdiction over highway matters enters into a written agreement with the Secretary described in subsection (c).

      ‘(5) OTHER FEDERAL AGENCY VIEWS- If a State applies to assume a responsibility of the Secretary that would have required the Secretary to consult with another Federal agency, the Secretary shall solicit the views of the Federal agency before approving the application.

    ‘(c) WRITTEN AGREEMENT- A written agreement under this section shall--

      ‘(1) be executed by the Governor or the top-ranking transportation official in the State who is charged with responsibility for highway construction;

      ‘(2) be in such form as the Secretary may prescribe;

      ‘(3) provide that the State--

        ‘(A) agrees to assume all or part of the responsibilities of the Secretary described in subsection (a);

        ‘(B) expressly consents, on behalf of the State, to accept the jurisdiction of the Federal courts for the compliance, discharge, and enforcement of any responsibility of the Secretary assumed by the State;

        ‘(C) certifies that State laws (including regulations) are in effect that--

          ‘(i) authorize the State to take the actions necessary to carry out the responsibilities being assumed; and

          ‘(ii) are comparable to section 552 of title 5, including providing that any decision regarding the public availability of a document under those State laws is reviewable by a court of competent jurisdiction; and

        ‘(D) agrees to maintain the financial resources necessary to carry out the responsibilities being assumed.

    ‘(d) JURISDICTION-

      ‘(1) IN GENERAL- The United States district courts shall have exclusive jurisdiction over any civil action against a State for failure to carry out any responsibility of the State under this section.

      ‘(2) LEGAL STANDARDS AND REQUIREMENTS- A civil action under paragraph (1) shall be governed by the legal standards and requirements that would apply in such a civil action against the Secretary had the Secretary taken the actions in question.

      ‘(3) INTERVENTION- The Secretary shall have the right to intervene in any action described in paragraph (1).

    ‘(e) EFFECT OF ASSUMPTION OF RESPONSIBILITY- A State that assumes responsibility under subsection (a)(2) shall be solely responsible and solely liable for carrying out, in lieu of the Secretary, the responsibilities assumed under subsection (a)(2), until the program is terminated as provided in subsection (i).

    ‘(f) LIMITATIONS ON AGREEMENTS- Nothing in this section permits a State to assume any rulemaking authority of the Secretary under any Federal law.

    ‘(g) AUDITS-

      ‘(1) IN GENERAL- To ensure compliance by a State with any agreement of the State under subsection (c)(1) (including compliance by the State with all Federal laws for which responsibility is assumed under subsection (a)(2)), for each State participating in the program under this section, the Secretary shall conduct--

        ‘(A) semiannual audits during each of the first 2 years of State participation; and

        ‘(B) annual audits during each subsequent year of State participation.

      ‘(2) PUBLIC AVAILABILITY AND COMMENT-

        ‘(A) IN GENERAL- An audit conducted under paragraph (1) shall be provided to the public for comment.

        ‘(B) RESPONSE- Not later than 60 days after the date on which the period for public comment ends, the Secretary shall respond to public comments received under subparagraph (A).

    ‘(h) REPORT TO CONGRESS- The Secretary shall submit to Congress an annual report that describes the administration of the program.

    ‘(i) TERMINATION-

      ‘(1) IN GENERAL- Except as provided in paragraph (2), the program shall terminate on the date that is 6 years after the date of enactment of this section.

      ‘(2) TERMINATION BY SECRETARY- The Secretary may terminate the participation of any State in the program if--

        ‘(A) the Secretary determines that the State is not adequately carrying out the responsibilities assigned to the State;

        ‘(B) the Secretary provides to the State--

          ‘(i) notification of the determination of noncompliance; and

          ‘(ii) a period of at least 30 days during which to take such corrective action as the Secretary determines is necessary to comply with the applicable agreement; and

        ‘(C) the State, after the notification and period provided under subparagraph (B), fails to take satisfactory corrective action, as determined by Secretary.’.

    (b) CONFORMING AMENDMENT- The analysis for chapter 3 of title 23, United States Code (as amended by section 1512(b)), is amended by inserting after the item relating to section 327 the following:

      ‘328. Surface transportation project delivery pilot program.’.

SEC. 1514. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL REFUGES, AND HISTORIC SITES.

    (a) PROGRAMS AND PROJECTS WITH DE MINIMIS IMPACTS-

      (1) TITLE 23- Section 138 of title 23, United States Code, is amended--

        (A) in the first sentence, by striking ‘It is hereby’ and inserting the following:

    ‘(a) DECLARATION OF POLICY- It is’; and

        (B) by adding at the end the following:

    ‘(b) DE MINIMIS IMPACTS-

      ‘(1) REQUIREMENTS-

        ‘(A) IN GENERAL- The requirements of this section shall be considered to be satisfied with respect to an area described in paragraph (2) or (3) if the Secretary determines, in accordance with this subsection, that a transportation program or project will have a de minimis impact on the area.

        ‘(B) CRITERIA- In making any determination under this subsection, the Secretary shall consider to be part of a transportation program or project any avoidance, minimization, mitigation, or enhancement measures that are required to be implemented as a condition of approval of the transportation program or project.

      ‘(2) HISTORIC SITES- With respect to historic sites, the Secretary may make a finding of de minimis impact only if--

        ‘(A) the Secretary has determined, in accordance with the consultation process required under section 106 of the National Historic Preservation Act (16 U.S.C. 470f), that--

          ‘(i) the transportation program or project will have no adverse effect on the historic site; or

          ‘(ii) there will be no historic properties affected by the transportation program or project;

        ‘(B) the finding of the Secretary has received written concurrence from the applicable State historic preservation officer or tribal historic preservation officer (and from the Advisory Council on Historic Preservation, if participating in the consultation); and

        ‘(C) the finding of the Secretary has been developed in consultation with parties consulting as part of the process referred to in subparagraph (A).

      ‘(3) PARKS, RECREATION AREAS, AND WILDLIFE AND WATERFOWL REFUGES- With respect to parks, recreation areas, and wildlife or waterfowl refuges, the Secretary may make a finding of de minimis impact only if--

        ‘(A) the Secretary has determined, in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (including public notice and opportunity for public review and comment), that the transportation program or project will not adversely affect the activities, features, and attributes of the park, recreation area, or wildlife or waterfowl refuge eligible for protection under this section; and

        ‘(B) the finding of the Secretary has received concurrence from the officials with jurisdiction over the park, recreation area, or wildlife or waterfowl refuge.’.

      (2) TITLE 49- Section 303 of title 49, United States Code, is amended--

        (A) by striking ‘(c) The Secretary’ and inserting the following:

    ‘(c) APPROVAL OF PROGRAMS AND PROJECTS- Subject to subsection (d), the Secretary’; and

        (B) by adding at the end the following:

    ‘(d) DE MINIMIS IMPACTS-

      ‘(1) REQUIREMENTS-

        ‘(A) IN GENERAL- The requirements of this section shall be considered to be satisfied with respect to an area described in paragraph (2) or (3) if the Secretary determines, in accordance with this subsection, that a transportation program or project will have a de minimis impact on the area.

        ‘(B) CRITERIA- In making any determination under this subsection, the Secretary shall consider to be part of a transportation program or project any avoidance, minimization, mitigation, or enhancement measures that are required to be implemented as a condition of approval of the transportation program or project.

      ‘(2) HISTORIC SITES- With respect to historic sites, the Secretary may make a finding of de minimis impact only if--

        ‘(A) the Secretary has determined, in accordance with the consultation process required under section 106 of the National Historic Preservation Act (16 U.S.C. 470f), that--

          ‘(i) the transportation program or project will have no adverse effect on the historic site; or

          ‘(ii) there will be no historic properties affected by the transportation program or project;

        ‘(B) the finding of the Secretary has received written concurrence from the applicable State historic preservation officer or tribal historic preservation officer (and from the Advisory Council on Historic Preservation, if participating in the consultation); and

        ‘(C) the finding of the Secretary has been developed in consultation with parties consulting as part of the process referred to in subparagraph (A).

      ‘(3) PARKS, RECREATION AREAS, AND WILDLIFE AND WATERFOWL REFUGES- With respect to parks, recreation areas, and wildlife or waterfowl refuges, the Secretary may make a finding of de minimis impact only if--

        ‘(A) the Secretary has determined, in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (including public notice and opportunity for public review and comment), that the transportation program or project will not adversely affect the activities, features, and attributes of the park, recreation area, or wildlife or waterfowl refuge eligible for protection under this section; and

        ‘(B) the finding of the Secretary has received concurrence from the officials with jurisdiction over the park, recreation area, or wildlife or waterfowl refuge.’.

    (b) CLARIFICATION OF EXISTING STANDARDS-

      (1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Secretary shall (in consultation with affected agencies and interested parties) promulgate regulations that clarify the factors to be considered and the standards to be applied in determining the prudence and feasibility of alternatives under section 138 of title 23 and section 303 of title 49, United States Code.

      (2) REQUIREMENTS- The regulations--

        (A) shall clarify the application of the legal standards to a variety of different types of transportation programs and projects depending on the circumstances of each case; and

        (B) may include, as appropriate, examples to facilitate clear and consistent interpretation by agency decisionmakers.

    (c) IMPLEMENTATION STUDY-

      (1) IN GENERAL- The Secretary and the Transportation Research Board of the National Academy of Sciences shall jointly conduct a study on the implementation of this section and the amendments made by this section.

      (2) COMPONENTS- In conducting the study, the Secretary and the Transportation Research Board shall evaluate--

        (A) the processes developed under this section and the amendments made by this section and the efficiencies that may result;

        (B) the post-construction effectiveness of impact mitigation and avoidance commitments adopted as part of projects conducted under this section and the amendments made by this section; and

        (C) the quantity of projects with impacts that are considered de minimis under this section and the amendments made by this section, including information on the location, size, and cost of the projects.

      (3) REPORT REQUIREMENT- The Secretary and the Transportation Research Board shall prepare--

        (A) not earlier than the date that is 4 years after the date of enactment of this Act, a report on the results of the study conducted under this subsection; and

        (B) not later than September 30, 2009, an update on the report required under subparagraph (A).

      (4) REPORT RECIPIENTS- The Secretary and the Transportation Research Board shall--

        (A) submit the report and update required under paragraph (3) to--

          (i) the appropriate committees of Congress;

          (ii) the Secretary of the Interior; and

          (iii) the Advisory Council on Historic Preservation; and

        (B) make the report and update available to the public.

SEC. 1515. REGULATIONS.

    Except as provided in section 1513, not later than 1 year after the date of enactment of this Act, the Secretary shall promulgate regulations necessary to implement the amendments made by chapter 1 and this chapter.

CHAPTER 3--MISCELLANEOUS

SEC. 1521. CRITICAL REAL PROPERTY ACQUISITION.

    Section 108 of title 23, United States Code, is amended by adding at the end the following:

    ‘(d) CRITICAL REAL PROPERTY ACQUISITION-

      ‘(1) IN GENERAL- Subject to paragraph (2), funds apportioned to a State under this title may be used to pay the costs of acquiring any real property that is determined to be critical under paragraph (2) for a project proposed for funding under this title.

      ‘(2) REIMBURSEMENT- The Federal share of the costs referred to in paragraph (1) shall be eligible for reimbursement out of funds apportioned to a State under this title if, before the date of acquisition, the Secretary determines that--

        ‘(A) the property is offered for sale on the open market;

        ‘(B) in acquiring the property, the State will comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.); and

        ‘(C) immediate acquisition of the property is critical because--

          ‘(i) based on an appraisal of the property, the value of the property is increasing significantly;

          ‘(ii) there is an imminent threat of development or redevelopment of the property; and

          ‘(iii) the property is necessary for the implementation of the goals stated in the proposal for the project.

      ‘(3) APPLICABLE LAW- An acquisition of real property under this section shall be considered to be an exempt project under section 176 of the Clean Air Act (42 U.S.C. 7506).

      ‘(4) ENVIRONMENTAL REVIEW-

        ‘(A) IN GENERAL- A project proposed to be conducted under this title shall not be conducted on property acquired under paragraph (1) until all required environmental reviews for the project have been completed.

        ‘(B) EFFECT ON CONSIDERATION OF PROJECT ALTERNATIVES- The number of critical acquisitions of real property associated with a project shall not affect the consideration of project alternatives during the environmental review process.

      ‘(5) PROCEEDS FROM THE SALE OR LEASE OF REAL PROPERTY- Section 156(c) shall not apply to the sale, use, or lease of any real property acquired under paragraph (1).’.

SEC. 1522. PLANNING CAPACITY BUILDING INITIATIVE.

    Section 104 of title 23, United States Code, is amended by adding at the end the following:

    ‘(m) PLANNING CAPACITY BUILDING INITIATIVE-

      ‘(1) IN GENERAL- The Secretary shall carry out a planning capacity building initiative to support enhancements in transportation planning to--

        ‘(A) strengthen the processes and products of metropolitan and statewide transportation planning under this title;

        ‘(B) enhance tribal capacity to conduct joint transportation planning under chapter 2;

        ‘(C) participate in the metropolitan and statewide transportation planning programs under this title; and

        ‘(D) increase the knowledge and skill level of participants in metropolitan and statewide transportation.

      ‘(2) PRIORITY- The Secretary shall give priority to planning practices and processes that support--

        ‘(A) the transportation elements of homeland security planning, including--

          ‘(i) training and best practices relating to emergency evacuation;

          ‘(ii) developing materials to assist areas in coordinating emergency management and transportation officials; and

          ‘(iii) developing training on how planning organizations may examine security issues;

        ‘(B) performance-based planning, including--

          ‘(i) data and data analysis technologies to be shared with States, metropolitan planning organizations, local governments, and nongovernmental organizations that--

            ‘(I) participate in transportation planning;

            ‘(II) use the data and data analysis to engage in metropolitan, tribal, or statewide transportation planning;

            ‘(III) involve the public in the development of transportation plans, projects, and alternative scenarios; and

            ‘(IV) develop strategies to avoid, minimize, and mitigate the impacts of transportation facilities and projects; and

          ‘(ii) improvement of the quality of congestion management systems, including the development of--

            ‘(I) a measure of congestion;

            ‘(II) a measure of transportation system reliability; and

            ‘(III) a measure of induced demand;

        ‘(C) safety planning, including--

          ‘(i) development of State strategic safety plans consistent with section 148;

          ‘(ii) incorporation of work zone safety into planning; and

          ‘(iii) training in the development of data systems relating to highway safety;

        ‘(D) operations planning, including--

          ‘(i) developing training of the integration of transportation system operations and management into the transportation planning process; and

          ‘(ii) training and best practices relating to regional concepts of operations;

        ‘(E) freight planning, including--

          ‘(i) modeling of freight at a regional and statewide level; and

          ‘(ii) techniques for engaging the freight community with the planning process;

        ‘(F) air quality planning, including--

          ‘(i) assisting new and existing nonattainment and maintenance areas in developing the technical capacity to perform air quality conformity analysis;

          ‘(ii) providing training on areas such as modeling and data collection to support air quality planning and analysis;

          ‘(iii) developing concepts and techniques to assist areas in meeting air quality performance timeframes; and

          ‘(iv) developing materials to explain air quality issues to decisionmakers and the public; and

        ‘(G) integration of environment and planning.

      ‘(3) USE OF FUNDS- The Secretary shall use amounts made available under paragraph (4) to make grants to, or enter into contracts, cooperative agreements, and other transactions with, a Federal agency, State agency, local agency, federally recognized Indian tribal government or tribal consortium, authority, association, nonprofit or for-profit corporation, or institution of higher education for research, program development, information collection and dissemination, and technical assistance.

      ‘(4) SET-ASIDE-

        ‘(A) IN GENERAL- On October 1 of each fiscal year, of the funds made available under subsection (a), the Secretary shall set aside $4,000,000 to carry out this subsection.

        ‘(B) FEDERAL SHARE- The Federal share of the cost of an activity carried out using funds made available under subparagraph (A) shall be 100 percent.

        ‘(C) AVAILABILITY- Funds made available under subparagraph (A) shall remain available until expended.’.

Subtitle F--Environment

SEC. 1601. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT; CONTROL OF INVASIVE PLANT SPECIES AND ESTABLISHMENT OF NATIVE SPECIES.

    (a) MODIFICATION TO NHS/STP FOR ENVIRONMENTAL RESTORATION, POLLUTION ABATEMENT, AND INVASIVE SPECIES-

      (1) MODIFICATIONS TO NATIONAL HIGHWAY SYSTEM- Section 103(b)(6) of title 23, United States Code, is amended by adding at the end the following:

        ‘(Q) Environmental restoration and pollution abatement in accordance with section 165.

        ‘(R) Control of invasive plant species and establishment of native species in accordance with section 166.’.

      (2) MODIFICATIONS TO SURFACE TRANSPORTATION PROGRAM- Section 133(b) of title 23, is amended by striking paragraph (14) and inserting the following:

      ‘(14) Environmental restoration and pollution abatement in accordance with section 165.

      ‘(15) Control of invasive plant species and establishment of native species in accordance with section 166.’.

    (b) ELIGIBLE ACTIVITIES- Subchapter I of chapter 1 of title 23, United States Code, is amended by adding at the end the following:

‘Sec. 165. Eligibility for environmental restoration and pollution abatement

    ‘(a) IN GENERAL- Subject to subsection (b), environmental restoration and pollution abatement to minimize or mitigate the impacts of any transportation project funded under this title (including retrofitting and construction of storm water treatment systems to meet Federal and State requirements under sections 401 and 402 of the Federal Water Pollution Control Act (33 U.S.C. 1341, 1342)) may be carried out to address water pollution or environmental degradation caused wholly or partially by a transportation facility.

    ‘(b) MAXIMUM EXPENDITURE- In a case in which a transportation facility is undergoing reconstruction, rehabilitation, resurfacing, or restoration, the expenditure of funds under this section for environmental restoration or pollution abatement described in subsection (a) shall not exceed 20 percent of the total cost of the reconstruction, rehabilitation, resurfacing, or restoration of the facility.

‘Sec. 166. Control of invasive plant species and establishment of native species

    ‘(a) DEFINITIONS- In this section:

      ‘(1) INVASIVE PLANT SPECIES--The term ‘invasive plant species’ means a nonindigenous species the introduction of which causes or is likely to cause economic or environmental harm or harm to human health.

      ‘(2) NATIVE PLANT SPECIES- The term ‘native plant species’ means, with respect to a particular ecosystem, a species that, other than as result of an introduction, historically occurred or currently occurs in that ecosystem.

    ‘(b) CONTROL OF SPECIES-

      ‘(1) IN GENERAL- In accordance with all applicable Federal law (including regulations), funds made available to carry out this section may be used for--

        ‘(A) participation in the control of invasive plant species; and

        ‘(B) the establishment of native species.

      ‘(2) INCLUDED ACTIVITIES- The participation and establishment under paragraph (1) may include--

        ‘(A) participation in statewide inventories of invasive plant species and desirable plant species;

        ‘(B) regional native plant habitat conservation and mitigation;

        ‘(C) native revegetation;

        ‘(D) elimination of invasive species to create fuel breaks for the prevention and control of wildfires; and

        ‘(E) training.

      ‘(3) CONTRIBUTIONS-

        ‘(A) IN GENERAL- Subject to subparagraph (B), an activity described in paragraph (1) may be carried out concurrently with, in advance of, or following the construction of a project funded under this title.

        ‘(B) CONDITION FOR ACTIVITIES CONDUCTED IN ADVANCE OF PROJECT CONSTRUCTION- An activity described in paragraph (1) may be carried out in advance of construction of a project only if the activity is carried out in accordance with all applicable requirements of Federal law (including regulations) and State transportation planning processes.’.

    (c) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1406(b)), is amended by adding at the end the following:

      ‘165. Eligibility for environmental restoration and pollution abatement.

      ‘166. Control of invasive plant species and establishment of native species.’.

SEC. 1602. NATIONAL SCENIC BYWAYS PROGRAM.

    (a) IN GENERAL- Section 162 of title 23, United States Code, is amended--

      (1) in subsection (a)(1), by striking ‘the roads as’ and all that follows and inserting ‘the roads as--

        ‘(A) National Scenic Byways;

        ‘(B) All-American Roads; or

        ‘(C) America’s Byways.’;

      (2) in subsection (b)--

        (A) in paragraph (1)(A), by striking ‘designated as’ and all that follows and inserting ‘designated as--

          ‘(i) National Scenic Byways;

          ‘(ii) All-American Roads; or

          ‘(iii) America’s Byways; and’;

        (B) in paragraph (2)--

          (i) in subparagraph (A), by striking ‘Byway or All-American Road’ and inserting ‘Byway, All-American Road, or 1 of America’s Byways’; and

          (ii) in subparagraph (B), by striking ‘designation as a’ and all that follows and inserting ‘designation as--

          ‘(i) a National Scenic Byway;

          ‘(ii) an All-American Road; or

          ‘(iii) 1 of America’s Byways; and’; and

      (3) in subsection (c)(4), by striking ‘passing lane,’.

    (b) RESEARCH, TECHNICAL ASSISTANCE, MARKETING, AND PROMOTION- Section 162 of title 23, United States Code, is amended--

      (1) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively;

      (2) by inserting after subsection (c) the following:

    ‘(d) RESEARCH, TECHNICAL ASSISTANCE, MARKETING, AND PROMOTION-

      ‘(1) IN GENERAL- The Secretary may carry out technical assistance, marketing, market research, and promotion with respect to State Scenic Byways, National Scenic Byways, All-American Roads, and America’s Byways.

      ‘(2) COOPERATION, GRANTS, AND CONTRACTS- The Secretary may make grants to, or enter into contracts, cooperative agreements, and other transactions with, any Federal agency, State agency, authority, association, institution, for-profit or nonprofit corporation, organization, or person, to carry out projects and activities under this subsection.

      ‘(3) FUNDS- The Secretary may use not more than $2,000,000 for each fiscal year of funds made available for the National Scenic Byways Program to carry out projects and activities under this subsection.

      ‘(4) PRIORITY- The Secretary shall give priority under this subsection to partnerships that leverage Federal funds for research, technical assistance, marketing and promotion.’; and

      (3) in subsection (g) (as redesignated by paragraph (1)), by striking ‘80 percent’ and inserting ‘the share applicable under section 120, as adjusted under subsection (d) of that section’.

SEC. 1603. RECREATIONAL TRAILS PROGRAM.

    (a) RECREATIONAL TRAILS PROGRAM FORMULA- Section 104(h)(1) of title 23, United States Code, is amended--

      (1) by striking ‘Whenever’ and inserting the following:

        ‘(A) IN GENERAL- In any case in which’;

      (2) by striking ‘research and technical assistance under the recreational trails program and for the administration of the National Recreational Trails Advisory Committee’ and inserting ‘research, technical assistance, and training under the recreational trails program’; and

      (3) by striking ‘The Secretary’ and inserting the following:

        ‘(B) CONTRACTS AND AGREEMENTS- The Secretary’.

    (b) RECREATIONAL TRAILS PROGRAM ADMINISTRATION- Section 206 of title 23, United States Code, is amended--

      (1) in subsection (d)--

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

      ‘(2) PERMISSIBLE USES- Permissible uses of funds apportioned to a State for a fiscal year to carry out this section include--

        ‘(A) maintenance and restoration of recreational trails;

        ‘(B) development and rehabilitation of trailside and trailhead facilities and trail linkages for recreational trails;

        ‘(C) purchase and lease of recreational trail construction and maintenance equipment;

        ‘(D) construction of new recreational trails, except that, in the case of new recreational trails crossing Federal land, construction of the trails shall be--

          ‘(i) permissible under other law;

          ‘(ii) necessary and recommended by a statewide comprehensive outdoor recreation plan that is--

            ‘(I) required under the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.); and

            ‘(II) in effect;

          ‘(iii) approved by the administering agency of the State designated under subsection (c)(1)(A); and

          ‘(iv) approved by each Federal agency having jurisdiction over the affected land, under such terms and conditions as the head of the Federal agency determines to be appropriate, except that the approval shall be contingent on compliance by the Federal agency with all applicable laws, including--

            ‘(I) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

            ‘(II) the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.); and

            ‘(III) the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.);

        ‘(E) acquisition of easements and fee simple title to property for recreational trails or recreational trail corridors;

        ‘(F) assessment of trail conditions for accessibility and maintenance;

        ‘(G) use of trail crews, youth conservation or service corps, or other appropriate means to carry out activities under this section;

        ‘(H) development and dissemination of publications and operation of educational programs to promote safety and environmental protection, as those objectives relate to the use of recreational trails, supporting non-law enforcement trail safety and trail use monitoring patrol programs, and providing trail-related training, but in an amount not to exceed 5 percent of the apportionment made to the State for the fiscal year; and

        ‘(I) payment of costs to the State incurred in administering the program, but in an amount not to exceed 7 percent of the apportionment made to the State for the fiscal year to carry out this section.’; and

        (B) in paragraph (3)--

          (i) in subparagraph (D), by striking ‘(2)(F)’ and inserting ‘(2)(I)’; and

          (ii) by adding at the end the following:

        ‘(E) USE OF YOUTH CONSERVATION OR SERVICE CORPS- A State shall make available not less than 10 percent of the apportionments of the State to provide grants to, or to enter into cooperative agreements or contracts with, qualified youth conservation or service corps to perform recreational trails program activities.’;

      (2) in subsection (f)--

        (A) in paragraph (1)--

          (i) by inserting ‘and the Federal share of the administrative costs of a State’ after ‘project’; and

          (ii) by striking ‘not exceed 80 percent’ and inserting ‘be determined in accordance with section 120’;

        (B) in paragraph (2)--

          (i) in subparagraph (A), by striking ‘80 percent of’ and inserting ‘the amount determined in accordance with section 120 for’; and

          (ii) in subparagraph (B), by inserting ‘sponsoring the project’ after ‘Federal agency’;

        (C) by striking paragraph (5);

        (D) by redesignating paragraph (4) as paragraph (5);

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

      ‘(4) USE OF RECREATIONAL TRAILS PROGRAM FUNDS TO MATCH OTHER FEDERAL PROGRAM FUNDS- Notwithstanding any other provision of law, funds made available under this section may be used to pay the non-Federal matching share for other Federal program funds that are--

        ‘(A) expended in accordance with the requirements of the Federal program relating to activities funded and populations served; and

        ‘(B) expended on a project that is eligible for assistance under this section.’; and

        (F) in paragraph (5) (as redesignated by subparagraph (D)), by striking ‘80 percent’ and inserting ‘the Federal share as determined in accordance with section 120’; and

      (3) in subsection (h)--

        (A) in paragraph (1), by inserting after subparagraph (B) the following:

        ‘(C) PLANNING AND ENVIRONMENTAL ASSESSMENT COSTS INCURRED PRIOR TO PROJECT APPROVAL- A project funded under any of subparagraphs (A) through (H) of subsection (d)(2) may permit preapproval planning and environmental compliance costs incurred not more than 18 months before project approval to be credited toward the non-Federal share in accordance with subsection (f).’; and

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

      ‘(2) WAIVER OF HIGHWAY PROGRAM REQUIREMENTS- A project funded under this section--

        ‘(A) is intended to enhance recreational opportunity;

        ‘(B) is not considered to be a highway project; and

        ‘(C) is not subject to--

          ‘(i) section 112, 114, 116, 134, 135, 138, 217, or 301 of this title; or

          ‘(ii) section 303 of title 49.’.

SEC. 1604. EXEMPTION OF INTERSTATE SYSTEM.

    Subsection 103(c) of title 23, United States Code, is amended by adding at the end the following:

      ‘(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 of the Interstate System are listed on, or eligible for listing on, the National Register of Historic Places.

        ‘(B) INDIVIDUAL ELEMENTS- A portion of the Interstate System that possesses an independent feature of historic significance, such as a historic bridge or a highly significant engineering feature, that would qualify independently for listing on the National Register of Historic Places, shall be considered to be a historic site under section 303 of title 49 or section 138 of this title, as applicable.’.

SEC. 1605. STANDARDS.

    (a) IN GENERAL- Section 109(a) of title 23, United States Code, is amended--

      (1) in paragraph (1), by striking ‘and’ at the end;

      (2) in paragraph (2), by striking the period at the end and inserting ‘; and’; and

      (3) by adding at the end the following:

      ‘(3) consider the preservation, historic, scenic, natural environmental, and community values.’.

    (b) CONTEXT SENSITIVE DESIGN- Section 109 of title 23, United States Code, is amended by striking subsection (p) and inserting the following:

    ‘(p) CONTEXT SENSITIVE DESIGN-

      ‘(1) IN GENERAL- The Secretary shall encourage States to design projects funded under this title that--

        ‘(A) allow for the preservation of environmental, scenic, or historic values;

        ‘(B) ensure the safe use of the facility;

        ‘(C) provide for consideration of the context of the locality;

        ‘(D) encourage access for other modes of transportation; and

        ‘(E) comply with subsection (a).

      ‘(2) APPROVAL BY SECRETARY- Notwithstanding subsections (b) and (c), the Secretary may approve a project described in paragraph (1) for the National Highway System if the project is designed to achieve the criteria specified in that paragraph.’.

SEC. 1606. USE OF HIGH OCCUPANCY VEHICLE LANES.

    Section 102 of title 23, United States Code, is amended by striking subsection (a) and inserting the following:

    ‘(a) HIGH OCCUPANCY VEHICLE LANE PASSENGER REQUIREMENTS-

      ‘(1) DEFINITIONS- In this subsection:

        ‘(A) RESPONSIBLE AGENCY- The term ‘responsible agency’ means--

          ‘(i) a State transportation department; and

          ‘(ii) a local agency in a State that is responsible for transportation matters.

        ‘(B) SERIOUSLY DEGRADED- The term ‘seriously degraded’, with respect to a high occupancy vehicle lane, means, in the case of a high occupancy vehicle lane, the minimum average operating speed, performance threshold, and associated time period of the high occupancy vehicle lane, calculated and determined jointly by all applicable responsible agencies and based on conditions unique to the roadway, are unsatisfactory.

      ‘(2) REQUIREMENTS-

        ‘(A) IN GENERAL- Subject to subparagraph (B), for each State, 1 or more responsible agencies shall establish the occupancy requirements of vehicles operating on high occupancy vehicle lanes.

        ‘(B) MINIMUM NUMBER OF OCCUPANTS- Except as provided in paragraph (3), an occupancy requirement established under subparagraph (A) shall--

          ‘(i) require at least 2 occupants per vehicle for a vehicle operating on a high occupancy vehicle lane; and

          ‘(ii) in the case of a high occupancy vehicle lane that traverses an adjacent State, be established in consultation with the adjacent State.

      ‘(3) EXCEPTIONS TO HOV OCCUPANCY REQUIREMENTS-

        ‘(A) MOTORCYCLES- For the purpose of this subsection, a motorcycle--

          ‘(i) shall not be considered to be a single occupant vehicle; and

          ‘(ii) shall be allowed to use a high occupancy vehicle lane unless a responsible agency--

            ‘(I) certifies to the Secretary the use of a high occupancy vehicle lane by a motorcycle would create a safety hazard; and

            ‘(II) restricts that the use of the high occupancy vehicle lane by motorcycles.

        ‘(B) LOW EMISSION AND ENERGY-EFFICIENT VEHICLES-

          ‘(i) DEFINITION OF LOW EMISSION AND ENERGY-EFFICIENT VEHICLE- In this subparagraph, the term ‘low emission and energy-efficient vehicle’ means a vehicle that has been certified by the Administrator of the Environmental Protection Agency--

            ‘(I)(aa) to have a 45-mile per gallon or greater fuel economy highway rating; or

            ‘(bb) to qualify as an alternative fueled vehicle under section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211); and

            ‘(II) as meeting Tier II emission level established in regulations promulgated by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for that make and model year vehicle.

          ‘(ii) EXEMPTION FOR LOW EMISSION AND ENERGY-EFFICIENT VEHICLES- A responsible agency may permit qualifying low emission and energy-efficient vehicles that do not meet applicable occupancy requirements (as determined by the responsible agency) to use high occupancy vehicle lanes if the responsible agency--

            ‘(I) establishes a program that addresses how those qualifying low emission and energy-efficient vehicles are selected and certified;

            ‘(II) establishes requirements for labeling qualifying low emission and energy-efficient vehicles (including procedures for enforcing those requirements);

            ‘(III) continuously monitors, evaluates, and reports to the Secretary on performance; and

            ‘(IV) imposes such restrictions on the use on high occupancy vehicle lanes by vehicles that do not satisfy established occupancy requirements as are necessary to ensure that the performance of individual high occupancy vehicle lanes, and the entire high occupancy vehicle lane system, will not become seriously degraded.

        ‘(C) TOLLING OF VEHICLES-

          ‘(i) IN GENERAL- A responsible agency may permit vehicles, in addition to the vehicles described in paragraphs (A), (B), and (D) that do not satisfy established occupancy requirements, to use a high occupancy vehicle lane only if the responsible agency charges those vehicles a toll.

          ‘(ii) APPLICABLE AUTHORITY- In imposing a toll under clause (i), a responsible agency shall--

            ‘(I) be subject to section 129;

            ‘(II) establish a toll program that addresses ways in which motorists may enroll and participate in the program;

            ‘(III) develop, manage, and maintain a system that will automatically collect the tolls from covered vehicles;

            ‘(IV) continuously monitor, evaluate, and report on performance of the system;

            ‘(V) establish such policies and procedures as are necessary--

‘(aa) to vary the toll charged in order to manage the demand for use of high occupancy vehicle lanes; and

‘(bb) to enforce violations; and

            ‘(VI) establish procedures to impose such restrictions on the use of high occupancy vehicle lanes by vehicles that do not satisfy established occupancy requirements as are necessary to ensure that the performance of individual high occupancy vehicle lanes, and the entire high occupancy vehicle lane system, will not become seriously degraded.

        ‘(D) DESIGNATED PUBLIC TRANSPORTATION VEHICLES-

          ‘(i) DEFINITION OF DESIGNATED PUBLIC TRANSPORTATION VEHICLE- In this subparagraph, the term ‘designated public transportation vehicle’ means a vehicle that--

            ‘(I) provides designated public transportation (as defined in section 221 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12141)); and

            ‘(II)(aa) is owned or operated by a public entity; or

            ‘(bb) is operated under a contract with a public entity.

          ‘(ii) USE OF HIGH OCCUPANCY VEHICLE LANES- A responsible agency may permit designated public transportation vehicles that do not satisfy established occupancy requirements to use high occupancy vehicle lanes if the responsible agency--

            ‘(I) requires the clear and identifiable labeling of each designated public transportation vehicle operating under a contract with a public entity with the name of the public entity on all sides of the vehicle;

            ‘(II) continuously monitors, evaluates, and reports on performance of those designated public transportation vehicles; and

            ‘(III) imposes such restrictions on the use of high occupancy vehicle lanes by designated public transportation vehicles as are necessary to ensure that the performance of individual high occupancy vehicle lanes, and the entire high occupancy vehicle lane system, will not become seriously degraded.

        ‘(E) HOV LANE MANAGEMENT, OPERATION, AND MONITORING-

          ‘(i) IN GENERAL- A responsible agency that permits any of the exceptions specified in this paragraph shall comply with clauses (ii) and (iii).

          ‘(ii) PERFORMANCE MONITORING, EVALUATION, AND REPORTING- A responsible agency described in clause (i) shall establish, manage, and support a performance monitoring, evaluation, and reporting program under which the responsible agency continuously monitors, assesses, and reports on the effects that any vehicle permitted to use a high occupancy vehicle lane under an exception under this paragraph may have on the operation of--

            ‘(I) individual high occupancy vehicle lanes; and

            ‘(II) the entire high occupancy vehicle lane system.

          ‘(iii) OPERATION OF HOV LANE OR SYSTEM- A responsible agency described in clause (i) shall limit use of, or cease to use, any of the exceptions specified in this paragraph if the presence of any vehicle permitted to use a high occupancy vehicle lane under an exception under this paragraph seriously degrades the operation of--

            ‘(I) individual high occupancy vehicle lanes; and

            ‘(II) the entire high occupancy vehicle lane system.’.

SEC. 1607. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

    (a) IN GENERAL- Section 217 of title 23, United States Code, is amended--

      (1) in subsection (a), by inserting ‘pedestrian and’ after ‘safe’;

      (2) in subsection (e), by striking ‘bicycles’ each place it appears and inserting ‘pedestrians or bicyclists’;

      (3) by striking subsection (f) and inserting the following:

    ‘(f) FEDERAL SHARE- The Federal share of the construction of bicycle transportation facilities and pedestrian walkways, and for carrying out nonconstruction projects relating to safe pedestrian and bicycle use, shall be determined in accordance with section 120(b).’;

      (4) by redesignating subsection (j) as subsection (k);

      (5) by inserting after subsection (i) the following:

    ‘(j) BICYCLE AND PEDESTRIAN SAFETY GRANTS-

      ‘(1) IN GENERAL- The Secretary shall select and make grants to a national, nonprofit organization engaged in promoting bicycle and pedestrian safety--

        ‘(A) to operate a national bicycle and pedestrian clearinghouse;

        ‘(B) to develop information and educational programs regarding walking and bicycling; and

        ‘(C) to disseminate techniques and strategies for improving bicycle and pedestrian safety.

      ‘(2) FUNDING- The Secretary may use funds set aside under section 104(n) to carry out this subsection.

      ‘(3) APPLICABILITY OF TITLE 23- Funds authorized to be appropriated to carry out this subsection shall be available for obligation in the same manner as if the funds were apportioned under section 104, except that the funds shall remain available until expended.’; and

      (6) in subsection (k) (as redesignated by paragraph (4))--

        (A) by redesignating paragraph (4) as paragraph (5); and

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

      ‘(4) SHARED USE PATH- The term ‘shared use path’ means a multiuse trail or other path that is--

        ‘(A) physically separated from motorized vehicular traffic by an open space or barrier, either within a highway right-of-way or within an independent right-of-way; and

        ‘(B) usable for transportation purposes (including by pedestrians, bicyclists, skaters, equestrians, and other nonmotorized users).’.

    (b) RESERVATION OF FUNDS- Section 104 of title 23, United States Code (as amended by section 1522), is amended by adding at the end the following:

    ‘(n) BICYCLE AND PEDESTRIAN SAFETY GRANTS- On October 1 of each of fiscal years 2004 through 2009, the Secretary, after making the deductions authorized by subsections (a) and (f), shall set aside $500,000 of the remaining funds apportioned under subsection (b)(3) for use in carrying out the bicycle and pedestrian safety grant program under section 217.’.

SEC. 1608. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY.

    Section 111 of title 23, United States Code, is amended by adding at the end the following:

    ‘(d) IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY-

      ‘(1) IN GENERAL- Notwithstanding subsection (a), a State may--

        ‘(A) permit electrification or other idling reduction facilities and equipment, for use by motor vehicles used for commercial purposes, to be placed in rest and recreation areas, and in safety rest areas, constructed or located on rights-of-way of the Interstate System in the State, so long as those idling reduction measures do not--

          ‘(i) reduce the existing number of designated truck parking spaces at any given rest or recreation area; or

          ‘(ii) preclude the use of those spaces by trucks employing alternative idle reduction technologies; and

        ‘(B) charge a fee, or permit the charging of a fee, for the use of those parking spaces actively providing power to a truck to reduce idling.

      ‘(2) PURPOSE- The exclusive purpose of the facilities described in paragraph (1) (or similar technologies) shall be to enable operators of motor vehicles used for commercial purposes--

        ‘(A) to reduce idling of a truck while parked in the rest or recreation area; and

        ‘(B) to use installed or other equipment specifically designed to reduce idling of a truck, or provide alternative power for supporting driver comfort, while parked.’.

SEC. 1609. TOLL PROGRAMS.

    (a) INTERSTATE SYSTEM RECONSTRUCTION AND REHABILITATION PILOT PROGRAM- Section 1216(b) of the Transportation Equity Act for the 21st Century (23 U.S.C. 129 note; 112 Stat. 212)--

      (1) is amended--

        (A) in paragraph (1)--

          (i) by striking ‘The Secretary’ and inserting ‘Notwithstanding section 301, the Secretary’; and

          (ii) by striking ‘that could not otherwise be adequately maintained or functionally improved without the collection of tolls’;

        (B) in paragraph (3), by striking subparagraph (C) and inserting the following:

        ‘(C) An analysis demonstrating that financing the reconstruction or rehabilitation of the facility with the collection of tolls under this pilot program is the most efficient, economical, or expeditious way to advance the project.’;

        (C) in paragraph (4)--

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

        ‘(A) the State’s analysis showing that financing the reconstruction or rehabilitation of a facility with the collection of tolls under the pilot program is the most efficient, economical, or expeditious way to advance the project;’;

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

        ‘(B) the facility needs reconstruction or rehabilitation, including major work that may require replacing sections of the existing facility on new alignment;’;

          (iii) by striking subparagraph (C); and

          (iv) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively;

      (2) is redesignated as subsection (d) of section 129 of title 23, United States Code, and moved to appear at the end of that section; and

      (3) by striking ‘of title 23, United States Code’ each place it appears.

    (b) FAST AND SENSIBLE TOLL (FAST) LANES PROGRAM- Section 129 of title 23, United States Code (as amended by subsection (a)(2)), is amended by adding at the end the following:

    ‘(e) FAST AND SENSIBLE TOLL (FAST) LANES PROGRAM-

      ‘(1) DEFINITIONS- In this subsection:

        ‘(A) ELIGIBLE TOLL FACILITY- The term ‘eligible toll facility’ includes--

          ‘(i) a facility in existence on the date of enactment of this subsection that collects tolls;

          ‘(ii) a facility in existence on the date of enactment of this subsection, including a facility that serves high occupancy vehicles;

          ‘(iii) a facility modified or constructed after the date of enactment of this subsection to create additional tolled capacity (including a facility constructed by a private entity or using private funds); and

          ‘(iv) in the case of a new lane added to a previously non-tolled facility, only the new lane.

        ‘(B) 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).

      ‘(2) ESTABLISHMENT- Notwithstanding sections 129 and 301, the Secretary shall permit a State, public authority, or a public or private entity designated by a State, to collect a toll from motor vehicles at an eligible toll facility for any highway, bridge, or tunnel, including facilities on the Interstate System--

        ‘(A) to manage high levels of congestion;

        ‘(B) to reduce emissions in a nonattainment area or maintenance area; or

        ‘(C) to finance the expansion of a highway, for the purpose of reducing traffic congestion, by constructing 1 or more additional lanes (including bridge, tunnel, support, and other structures necessary for that construction) on the Interstate System.

      ‘(3) LIMITATION ON USE OF REVENUES-

        ‘(A) USE-

          ‘(i) IN GENERAL- Toll revenues received under paragraph (2) shall be used by a State, public authority, or private entity designated by a State, for--

            ‘(I) debt service for debt incurred on 1 or more highway or transit projects carried out under this title or title 49;

            ‘(II) a reasonable return on investment of any private financing;

            ‘(III) the costs necessary for proper operation and maintenance of any facilities under paragraph (2) (including reconstruction, resurfacing, restoration, and rehabilitation); or

            ‘(IV) if the State, public authority, or private entity annually certifies that the tolled facility is being adequately operated and maintained, any other purpose relating to a highway or transit project carried out under this title or title 49.

        ‘(B) REQUIREMENTS-

          ‘(i) VARIABLE PRICE REQUIREMENT- A facility that charges tolls under this subsection may establish a toll that varies in price according to time of day or level of traffic, as appropriate to manage congestion or improve air quality.

          ‘(ii) HOV VARIABLE PRICING REQUIREMENT- The Secretary shall require, for each high occupancy vehicle facility that charges tolls under this subsection, that the tolls vary in price according to time of day or level of traffic, as appropriate to manage congestion or improve air quality.

          ‘(iii) HOV PASSENGER REQUIREMENTS- In addition to the exceptions to the high occupancy vehicle passenger requirements established under section 102(a)(2), a State may permit motor vehicles with fewer than 2 occupants to operate in high occupancy vehicle lanes as part of a variable toll pricing program established under this subsection.

        ‘(C) AGREEMENT-

          ‘(i) IN GENERAL- Before the Secretary may permit a facility to charge tolls under this subsection, the Secretary and the applicable State, public authority, or private entity designated by a State shall enter into an agreement for each facility incorporating the conditions described in subparagraphs (A) and (B).

          ‘(ii) TERMINATION- An agreement under clause (i) shall terminate with respect to a facility upon the decision of the State, public authority, or private entity designated by a State to discontinue the variable tolling program under this subsection for the facility.

          ‘(iii) DEBT-

            ‘(I) IN GENERAL- If there is any debt outstanding on a facility at the time at which the decision is made to discontinue the program under this subsection with respect to the facility, the facility may continue to charge tolls in accordance with the terms of the agreement until such time as the debt is retired.

            ‘(II) NOTICE- On retirement of the debt of a tolled facility, the applicable State, public authority, or private entity designated by a State shall provide notice to the public of that retirement.

        ‘(D) LIMITATION ON FEDERAL SHARE- The Federal share of the cost of a project on a facility tolled under this subsection, including a project to install the toll collection facility shall be a percentage, not to exceed 80 percent, determined by the applicable State.

      ‘(4) ELIGIBILITY- To be eligible to participate in the program under this subsection, a State, public authority, or private entity designated by a State shall provide to the Secretary--

        ‘(A) a description of the congestion or air quality problems sought to be addressed under the program;

        ‘(B) a description of--

          ‘(i) the goals sought to be achieved under the program; and

          ‘(ii) the performance measures that would be used to gauge the success made toward reaching those goals; and

        ‘(C) such other information as the Secretary may require.

      ‘(5) AUTOMATION- Fees collected from motorists using a FAST lane shall be collected only through the use of noncash electronic technology that optimizes the free flow of traffic on the tolled facility.

      ‘(6) INTEROPERABILITY-

        ‘(A) RULE-

          ‘(i) IN GENERAL- Not later than 180 days after the date of enactment of this paragraph, the Secretary shall promulgate a final rule specifying requirements, standards, or performance specifications for automated toll collection systems implemented under this section.

          ‘(ii) DEVELOPMENT- In developing that rule, which shall be designed to maximize the interoperability of electronic collection systems, the Secretary shall, to the maximum extent practicable--

            ‘(I) seek to accelerate progress toward the national goal of achieving a nationwide interoperable electronic toll collection system;

            ‘(II) take into account the use of noncash electronic technology currently deployed within an appropriate geographical area of travel and the noncash electronic technology likely to be in use within the next 5 years; and

            ‘(III) seek to minimize additional costs and maximize convenience to users of toll facility and to the toll facility owner or operator.

        ‘(B) FUTURE MODIFICATIONS- As the state of technology progresses, the Secretary shall modify the rule promulgated under subparagraph (A), as appropriate.

      ‘(7) REPORTING-

        ‘(A) IN GENERAL- The Secretary, in cooperation with State and local agencies and other program participants and with opportunity for public comment, shall--

          ‘(i) develop and publish performance goals for each FAST lane project;

          ‘(ii) establish a program for regular monitoring and reporting on the achievement of performance goals, including--

            ‘(I) effects on travel, traffic, and air quality;

            ‘(II) distribution of benefits and burdens;

            ‘(III) use of alternative transportation modes; and

            ‘(IV) use of revenues to meet transportation or impact mitigation needs.

        ‘(B) REPORTS TO CONGRESS- 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--

          ‘(i) not later than 1 year after the date of enactment of this subsection, and annually thereafter, a report that describes in detail the uses of funds under this subsection in accordance with paragraph (8)(D); and

          ‘(ii) not later than 3 years after the date of enactment of this subsection, and every 3 years thereafter, a report that describes any success of the program under this subsection in meeting congestion reduction and other performance goals established for FAST lane programs.

      ‘(8) FUNDING-

        ‘(A) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out pre-implementation studies and post-implementation evaluations of projects planned or implemented under this subsection $11,000,000 for each of fiscal years 2004 through 2009.

        ‘(B) AVAILABILITY- Funds allocated by the Secretary to a State under this subsection shall remain available for obligation by the State for a period of 3 years after the last day of the fiscal year for which the funds were authorized.

        ‘(C) CONTRACT AUTHORITY- Funds authorized to be appropriated under this paragraph shall be available for obligation in the same manner as if the funds were apportioned under this chapter, except that the Federal share of the cost of any project carried out under this subsection and the availability of funds authorized by this paragraph shall be determined in accordance with this subsection.

        ‘(D) PROGRAM PROMOTION- Notwithstanding any other provision of this section, the Secretary shall use an amount not to exceed 2 percent of the funds made available under subparagraph (A)--

          ‘(i) to make grants to promote the purposes of the program under this subsection;

          ‘(ii) to provide technical support to State and local governments or other public or private entities involved in implementing or considering FAST lane programs; and

          ‘(iii) to conduct research on variable pricing that will support State or local efforts to initiate those pricing requirements.

        ‘(E) EFFECT ON OTHER APPORTIONMENTS AND ALLOCATIONS- Revenues collected from tolls established under this subsection shall not be taken into account in determining the apportionments and allocations that any State or transportation district within a State shall be entitled to receive under or in accordance with this chapter.

      ‘(9) COMPLIANCE- The Secretary shall ensure that any project or activity carried out under this section complies with requirements under section 106 of this title and section 307 of title 49.

      ‘(10) VOLUNTARY USE- Nothing in this subsection requires any highway user to use a FAST lane.

      ‘(11) ENVIRONMENTAL REQUIREMENTS- Nothing in this subsection affects any environmental requirement applicable to the construction or operation of an eligible toll facility under this title or any other provision of law.’.

    (c) CONFORMING AMENDMENTS-

      (1) IN GENERAL- Section 1012 of the Intermodal Surface Transportation Efficiency Act (23 U.S.C. 149 note; 105 Stat. 1938; 112 Stat. 211) is amended by striking subsection (b).

      (2) CONTINUATION OF PROGRAM- Notwithstanding the amendment made by paragraph (1), the Secretary shall monitor and allow any value pricing program established under a cooperative agreement in effect on the day before the date of enactment of this Act to continue.

SEC. 1610. FEDERAL REFERENCE METHOD.

    (a) IN GENERAL- Section 6102 of the Transportation Equity Act for the 21st Century (42 U.S.C. 7407 note; 112 Stat. 464) is amended by striking subsection (e) and inserting the following:

    ‘(e) FIELD STUDY- Not later than 2 years after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Administrator shall--

      ‘(1) conduct a field study of the ability of the PM2.5 Federal Reference Method to differentiate those particles that are larger than 2.5 micrometers in diameter;

      ‘(2) develop a Federal reference method to measure directly particles that are larger than 2.5 micrometers in diameter without reliance on subtracting from coarse particle measurements those particles that are equal to or smaller than 2.5 micrometers in diameter;

      ‘(3) develop a method of measuring the composition of coarse particles; and

      ‘(4) submit a report on the study and responsibilities of the Administrator under paragraphs (1) through (3) to--

        ‘(A) the Committee on Commerce of the House of Representatives; and

        ‘(B) the Committee on Environment and Public Works of the Senate.’.

SEC. 1611. ADDITION OF PARTICULATE MATTER AREAS TO CMAQ.

    Section 104(b)(2) of title 23, United States Code, is amended--

      (1) in subparagraph (B)--

        (A) in the matter preceding clause (i), by striking ‘ozone or carbon monoxide’ and inserting ‘ozone, carbon monoxide, or fine particulate matter (PM2.5)’;

        (B) by striking clause (i) and inserting the following:

          ‘(i) 1.0, if at the time of apportionment, the area is a maintenance area;’;

        (C) in clause (vi), by striking ‘or’ after the semicolon; and

        (D) in clause (vii)--

          (i) by striking ‘area as described in section 149(b) for ozone,’ and inserting ‘area for ozone (as described in section 149(b) or for PM-2.5’; and

          (ii) by striking the period at the end and inserting a semicolon;

      (2) by adding at the end the following:

          ‘(viii) 1.0 if, at the time of apportionment, any county that is not designated as a nonattainment or maintenance area under the 1-hour ozone standard is designated as nonattainment under the 8-hour ozone standard; or

          ‘(ix) 1.2 if, at the time of apportionment, the area is not a nonattainment or maintenance area as described in section 149(b) for ozone or carbon monoxide, but is an area designated nonattainment under the PM-2.5 standard.’;

      (3) by striking subparagraph (C) and inserting the following:

        ‘(C) ADDITIONAL ADJUSTMENT FOR CARBON MONOXIDE AREAS- 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 classified under subpart 3 of part D of title I of the Clean Air Act (42 U.S.C. 7512 et seq.) as a nonattainment or maintenance area described in section 149(b) for carbon monoxide, the weighted nonattainment or maintenance area population of the county, as determined under clauses (i) through (vi) or clause (viii) of subparagraph (B), shall be further multiplied by a factor of 1.2.’;

      (4) by redesignating subparagraph (D) and (E) as subparagraphs (E) and (F) respectively; and

      (5) by inserting after subparagraph (C) the following:

        ‘(D) ADDITIONAL ADJUSTMENT FOR PM 2.5 AREAS- If, in addition to being designated as a nonattainment or maintenance area for ozone or carbon monoxide, or both as described in section 149(b), any county within the area was also designated under the PM-2.5 standard as a nonattainment or maintenance area, the weighted nonattainment or maintenance area population of those counties shall be further multiplied by a factor of 1.2.’.

SEC. 1612. ADDITION TO CMAQ-ELIGIBLE PROJECTS.

    (a) ELIGIBLE PROJECTS- Section 149(b) of title 23, United States Code, is amended--

      (1) in paragraph (4), by striking ‘or’ at the end;

      (2) in paragraph (5), by striking the period at the end and inserting a semicolon; and

      (3) by adding at the end the following:

      ‘(6) if the project or program is for the purchase of alternative fuel (as defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211)) or biodiesel; or

      ‘(7) if the project or program involves the purchase of integrated, interoperable emergency communications equipment.’.

    (b) STATES RECEIVING MINIMUM APPORTIONMENT- Section 149(c) of title 23, United States Code, is amended--

      (1) in paragraph (1), by striking ‘for any project eligible under the surface transportation program under section 133.’ and inserting the following: ‘for any project in the State that--

        ‘(A) would otherwise be eligible under this section as if the project were carried out in a nonattainment or maintenance area; or

        ‘(B) is eligible under the surface transportation program under section 133.’; and

      (2) in paragraph (2), by striking ‘for any project in the State eligible under section 133.’ and inserting the following: ‘for any project in the State that--

        ‘(A) would otherwise be eligible under this section as if the project were carried out in a nonattainment or maintenance area; or

        ‘(B) is eligible under the surface transportation program under section 133.’.

    (c) RESPONSIBILITY OF STATES-

      (1) IN GENERAL- Each State shall be responsible for ensuring that subrecipients of Federal funds within the State under section 149 of title 23, United States Code, have emission reduction strategies for fleets that are--

        (A) used in construction projects located in nonattainment and maintenance areas; and

        (B) funded under title 23, United States Code.

      (2) EMISSION REDUCTION STRATEGIES- The Administrator of the Environmental Protection Agency, in consultation with the Secretary, shall develop a nonbinding list of emission reduction strategies and supporting technical information for each strategy, including--

        (A) contract preferences;

        (B) requirements for the use of anti-idling equipment;

        (C) diesel retrofits; and

        (D) such other matters as the Administrator of the Environmental Protection Agency, in consultation with the Secretary, determine to be appropriate.

      (3) USE OF CMAQ FUNDS- A State may use funds made available under this title and title 23, United States Code, for the congestion mitigation and air quality program under section 149 of title 23, United States Code, to ensure the deployment of the emission reduction strategies described in paragraph (1).

SEC. 1613. IMPROVED INTERAGENCY CONSULTATION.

    Section 149 of title 23, United States Code, is amended by adding at the end the following:

    ‘(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.’.

SEC. 1614. EVALUATION AND ASSESSMENT OF CMAQ PROJECTS.

    Section 149 of title 23, United States Code, is amended by adding at the end the following:

    ‘(h) EVALUATION AND ASSESSMENT OF PROJECTS-

      ‘(1) IN GENERAL- The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall evaluate and assess a representative sample of projects funded under the congestion mitigation and air quality program to--

        ‘(A) determine the direct and indirect impact of the projects on air quality and congestion levels; and

        ‘(B) ensure the effective implementation of the program.

      ‘(2) DATABASE- 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.

      ‘(3) CONSIDERATION- The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall consider the recommendations and findings of the report submitted to Congress under section 1110(e) of the Transportation Equity Act for the 21st Century (112 Stat. 144), including recommendations and findings that would improve the operation and evaluation of the congestion mitigation and air quality improvement program under section 149.’.

SEC. 1615. SYNCHRONIZED PLANNING AND CONFORMITY TIMELINES, REQUIREMENTS, AND HORIZON.

    (a) METROPOLITAN PLANNING-

      (1) DEVELOPMENT OF LONG-RANGE TRANSPORTATION PLAN- Section 134(g)(1) of title 23, United States Code, is amended by striking ‘periodically, according to a schedule that the Secretary determines to be appropriate,’ and inserting ‘every 4 years (or more frequently, in a case in which the metropolitan planning organization elects to update a transportation plan more frequently) in areas designated as nonattainment, as defined in section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)), and in areas that were nonattainment that have been redesignated to attainment in accordance with section 107(d)(3) of that Act (42 U.S.C. 7407(d)(3)), with a maintenance plan under section 175A of that Act (42 U.S.C. 7505a), or every 5 years (or more frequently, in a case in which the metropolitan planning organization elects to update a transportation plan more frequently) in areas designated as attainment (as defined in section 107(d) of that Act (42 U.S.C. 7407(d))),’.

      (2) METROPOLITAN TRANSPORTATION IMPROVEMENT PROGRAM- Section 134(h) of title 23, United States Code, is amended--

        (A) in paragraph (1)(D), by striking ‘2 years’ and inserting ‘4 years’; and

        (B) in paragraph (2)(A), by striking ‘3-year’ and inserting ‘4-year’.

      (3) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM- Section 135(f)(1)(A) of title 23, United States Code, is amended by inserting after ‘program’ the following: ‘(which program shall cover a period of 4 years and be updated every 4 years)’.

      (4) FINAL REGULATIONS- Not later than 18 months after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Secretary shall promulgate regulations that are consistent with the amendments made by this subsection.

    (b) SYNCHRONIZED CONFORMITY DETERMINATION- Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) is amended--

      (1) in paragraph (2)--

        (A) by striking ‘(2) Any transportation plan’ and inserting the following:

      ‘(2) TRANSPORTATION PLANS AND PROGRAMS- Any transportation plan’;

        (B) in subparagraph (C)(iii), by striking the period at the end and inserting a semicolon;

        (C) in subparagraph (D)--

          (i) by striking ‘Any project’ and inserting ‘any transportation project’; and

          (ii) by striking the period at the end and inserting ‘; and’; and

        (D) by adding at the end the following:

        ‘(E) the appropriate metropolitan planning organization shall redetermine conformity of existing transportation plans and programs not later than 2 years after the date on which the Administrator--

          ‘(i) finds a motor vehicle emissions budget to be adequate in accordance with section 93.118(e)(4) of title 40, Code of Federal Regulations (as in effect on October 1, 2003);

          ‘(ii) approves an implementation plan that establishes a motor vehicle emissions budget, if that budget has not yet been used in a conformity determination prior to approval; or

          ‘(iii) promulgates an implementation plan that establishes or revises a motor vehicle emissions budget.’;

      (2) in paragraph (4)(B)(ii), by striking ‘but in no case shall such determinations for transportation plans and programs be less frequent than every 3 years; and’ and inserting ‘but the frequency for making conformity determinations on updated transportation plans and programs shall be every 4 years, except in a case in which--

            ‘(I) the metropolitan planning organization elects to update a transportation plan or program more frequently; or

            ‘(II) the metropolitan planning organization is required to determine conformity in accordance with paragraph (2)(E); and’;

      (3) in paragraph (4)(B)--

        (A) in clause (ii), by striking ‘and’ at the end;

        (B) in clause (iii), by striking the period at the end and inserting ‘; and’; and

        (C) by adding at the end the following:

          ‘(iv) address the effects of the most recent population, economic, employment, travel, transit ridership, congestion, and induced travel demand information in the development and application of the latest travel and emissions models.’;

      (4) by adding at the end the following:

      ‘(7) CONFORMITY HORIZON FOR TRANSPORTATION PLANS-

        ‘(A) IN GENERAL- For the purposes of this section, a transportation plan in a nonattainment or maintenance area shall be considered to be a transportation plan or a portion of a transportation plan that extends for the longest of the following periods:

          ‘(i) The first 10-year period of any such transportation plan.

          ‘(ii) The latest year in the implementation plan applicable to the area that contains a motor vehicle emission budget.

          ‘(iii) The year after the completion date of a regionally significant project, if the project requires approval before the subsequent conformity determination.

        ‘(B) EXCEPTION- In a case in which an area has a revision to an implementation plan under section 175A(b) and the Administrator has found the motor vehicle emissions budgets from that revision to be adequate in accordance with section 93.118(e)(4) of title 40, Code of Federal Regulations (as in effect on October 1, 2003), or has approved the revision, the transportation plan shall be considered to be a transportation plan or portion of a transportation plan that extends through the last year of the implementation plan required under section 175A(b).

      ‘(8) DEFINITIONS- In this subsection:

        ‘(A) REGIONALLY SIGNIFICANT PROJECT-

          ‘(i) IN GENERAL- The term ‘regionally significant project’ means a transportation project that is on a facility that serves a regional transportation need, including--

            ‘(I) access to and from the area outside of the region;

            ‘(II) access to and from major planned developments, including new retail malls, sports complexes, or transportation terminals; and

            ‘(III) most transportation terminals.

          ‘(ii) PRINCIPAL ARTERIALS AND FIXED GUIDEWAYS- The term ‘regionally significant project’ includes, at a minimum--

            ‘(I) all principal arterial highways; and

            ‘(II) all fixed guideway transit facilities that offer an alternative to regional highway travel.

          ‘(iii) ADDITIONAL PROJECTS- The interagency consultation process and procedures described in section 93.105(c) of title 40, Code of Federal Regulations (as in effect on October 1, 2003), shall be used to make determinations as to whether minor arterial highways and other transportation projects should be considered ‘regionally significant projects’.

          ‘(iv) EXCLUSIONS- The term ‘regionally significant project’ does not include any project of a type listed in sections 93.126 or 127 of title 40, Code of Federal Regulations (as in effect on October 1, 2003).

        ‘(B) SIGNIFICANT REVISION- The term ‘significant revision’ means--

          ‘(i) with respect to a regionally significant project, a significant change in design concept or scope to the project; and

          ‘(ii) with respect to any other kind of project, a change that converts a project that is not a regionally significant project into a regionally significant project.

        ‘(C) TRANSPORTATION PROJECT- The term ‘transportation project’ includes only a project that is--

          ‘(i) a regionally significant project; or

          ‘(ii) a project that makes a significant revision to an existing project.’; and

      (5) in the matter following paragraph (3)(B), by inserting ‘transportation’ before ‘project’ each place it appears.

SEC. 1616. TRANSITION TO NEW AIR QUALITY STANDARDS.

    Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) is amended by striking paragraph (3) and inserting the following:

      ‘(3) METHODS OF CONFORMITY DETERMINATION BEFORE BUDGET IS AVAILABLE-

        ‘(A) IN GENERAL- Until such time as a motor vehicle emission budget from an implementation plan submitted for a national ambient air quality standard is determined to be adequate in accordance with section 93.118(e)(4) of title 40, Code of Federal Regulations (as in effect on October 1, 2003), or the submitted implementation plan is approved, conformity of such a plan, program, or project shall be demonstrated, in accordance with clauses (i) and (ii) and as selected through the consultation process required under paragraph (4)(D)(i), with--

          ‘(i) a motor vehicle emission budget that has been found adequate in accordance with section 93.118(e)(4) of title 40, Code of Federal Regulations (as in effect on October 1, 2003), or that has been approved, from an implementation plan for the most recent prior applicable national ambient air quality standard addressing the same pollutant; or

          ‘(ii) other such tests as the Administrator shall determine to ensure that--

            ‘(I) the transportation plan or program--

‘(aa) is consistent with the most recent estimates of mobile source emissions;

‘(bb) provides for the expeditious implementation of transportation control measures in the applicable implementation plan; and

‘(cc) with respect to an ozone or carbon monoxide nonattainment area, contributes to annual emissions reductions consistent with sections 182(b)(1) and 187(a)(7); and

            ‘(II) the transportation project--

‘(aa) comes from a conforming transportation plan and program described in this subparagraph; and

‘(bb) in a carbon monoxide nonattainment area, eliminates or reduces the severity and number of violations of the carbon monoxide standards in the area substantially affected by the project.

        ‘(B) DETERMINATION FOR A TRANSPORTATION PROJECT IN A CARBON MONOXIDE NONATTAINMENT AREA- A determination under subparagraph (A)(ii)(II)(bb) may be made as part of either the conformity determination for the transportation program or for the individual project taken as a whole during the environmental review phase of project development.’.

SEC. 1617. REDUCED BARRIERS TO AIR QUALITY IMPROVEMENTS.

    Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (as amended by section 1615(b)(4)) is amended--

      (1) by redesignating paragraph (8) as paragraph (9); and

      (2) by inserting after paragraph (7) the following:

      ‘(8) SUBSTITUTION FOR TRANSPORTATION CONTROL MEASURES-

        ‘(A) IN GENERAL- Transportation control measures that are specified in an implementation plan may be replaced or added to the implementation plan with alternate or additional transportation control measures if--

          ‘(i) the substitute measures achieve equivalent or greater emissions reductions than the control measure to be replaced, as demonstrated with an analysis that is consistent with the current methodology used for evaluating the replaced control measure in the implementation plan;

          ‘(ii) the substitute control measures are implemented--

            ‘(I) in accordance with a schedule that is consistent with the schedule provided for control measures in the implementation plan; or

            ‘(II) if the implementation plan date for implementation of the control measure to be replaced has passed, as soon as practicable after the implementation plan date but not later than the date on which emission reductions are necessary to achieve the purpose of the implementation plan;

          ‘(iii) the substitute and additional control measures are accompanied with evidence of adequate personnel, funding, and authority under State or local law to implement, monitor, and enforce the control measures;

          ‘(iv) the substitute and additional control measures were developed through a collaborative process that included--

            ‘(I) participation by representatives of all affected jurisdictions (including local air pollution control agencies, the State air pollution control agency, and State and local transportation agencies);

            ‘(II) consultation with the Administrator; and

            ‘(III) reasonable public notice and opportunity for comment; and

          ‘(v) the metropolitan planning organization, State air pollution control agency, and the Administrator concur with the equivalency of the substitute or additional control measures.

        ‘(B) ADOPTION- After carrying out subparagraph (A), a State shall adopt the substitute or additional transportation control measure in the applicable implementation plan.

        ‘(C) NO REQUIREMENT FOR EXPRESS PERMISSION- The substitution or addition of a transportation control measure in accordance with this paragraph shall not be contingent on there being any provision in the implementation plan that expressly permits such a substitution or addition.

        ‘(D) NO REQUIREMENT FOR NEW CONFORMITY DETERMINATION- The substitution or addition of a transportation control measure in accordance with this paragraph shall not require--

          ‘(i) a new conformity determination for the transportation plan; or

          ‘(ii) a revision of the implementation plan.

        ‘(E) CONTINUATION OF CONTROL MEASURE BEING REPLACED- A control measure that is being replaced by a substitute control measure under this paragraph shall remain in effect until the substitute control measure is adopted by the State pursuant to subparagraph (B).

        ‘(F) EFFECT OF ADOPTION- Adoption of a substitute control measure shall constitute rescission of the previously applicable control measure.’.

SEC. 1618. AIR QUALITY MONITORING DATA INFLUENCED BY EXCEPTIONAL EVENTS.

    (a) IN GENERAL- Section 319 of the Clean Air Act (42 U.S.C. 7619) is amended--

      (1) by striking the section heading and all that follows through ‘after notice and opportunity for public hearing’ and inserting the following:

‘SEC. 319. AIR QUALITY MONITORING.

    ‘(a) IN GENERAL- After notice and opportunity for public hearing’; and

      (2) by adding at the end the following:

    ‘(b) AIR QUALITY MONITORING DATA INFLUENCED BY EXCEPTIONAL EVENTS-

      ‘(1) DEFINITION OF EXCEPTIONAL EVENT- In this section:

        ‘(A) IN GENERAL- The term ‘exceptional event’ means an event that--

          ‘(i) affects air quality;

          ‘(ii) is not reasonably controllable or preventable;

          ‘(iii) is--

            ‘(I) a natural event; or

            ‘(II) an event caused by human activity that is unlikely to recur at a particular location; and

          ‘(iv) is determined by the Administrator through the process established in the regulations promulgated under paragraph (2) to be an exceptional event.

        ‘(B) EXCLUSIONS- The term ‘exceptional event’ does not include--

          ‘(i) stagnation of air masses or meteorological inversions;

          ‘(ii) a meteorological event involving high temperatures or lack of precipitation; or

          ‘(iii) air pollution relating to source noncompliance.

      ‘(2) REGULATIONS-

        ‘(A) PROPOSED REGULATIONS- Not later than March 1, 2005, after consultation with Federal land managers and State air pollution control agencies, the Administrator shall publish in the Federal Register proposed regulations governing the review and handling of air quality monitoring data influenced by exceptional events.

        ‘(B) FINAL REGULATIONS- Not later than 1 year after the date on which the Administrator publishes proposed regulations under subparagraph (A), and after providing an opportunity for interested persons to make oral presentations of views, data, and arguments regarding the proposed regulations, the Administrator shall promulgate final regulations governing the review and handling or air quality monitoring data influenced by an exceptional event that are consistent with paragraph (3).

      ‘(3) PRINCIPLES AND REQUIREMENTS-

        ‘(A) PRINCIPLES- In promulgating regulations under this section, the Administrator shall follow--

          ‘(i) the principle that protection of public health is the highest priority;

          ‘(ii) the principle that timely information should be provided to the public in any case in which the air quality is unhealthy;

          ‘(iii) the principle that all ambient air quality data should be included in a timely manner, an appropriate Federal air quality database that is accessible to the public;

          ‘(iv) the principle that each State must take necessary measures to safeguard public health regardless of the source of the air pollution; and

          ‘(v) the principle that air quality data should be carefully screened to ensure that events not likely to recur are represented accurately in all monitoring data and analyses.

        ‘(B) REQUIREMENTS- Regulations promulgated under this section shall, at a minimum, provide that--

          ‘(i) the occurrence of an exceptional event must be demonstrated by reliable, accurate data that is promptly produced and provided by Federal, State, or local government agencies;

          ‘(ii) a clear causal relationship must exist between the measured exceedances of a national ambient air quality standard and the exceptional event to demonstrate that the exceptional event caused a specific air pollution concentration at a particular air quality monitoring location;

          ‘(iii) there is a public process for determining whether an event is exceptional; and

          ‘(iv) there are criteria and procedures for the Governor of a State to petition the Administrator to exclude air quality monitoring data that is directly due to exceptional events from use in determinations by the Environmental Protection Agency with respect to exceedances or violations of the national ambient air quality standards.

      ‘(4) INTERIM PROVISION- Until the effective date of a regulation promulgated under paragraph (2), the following guidance issued by the Administrator shall continue to apply:

        ‘(A) Guidance on the identification and use of air quality data affected by exceptional events (July 1986).

        ‘(B) Areas affected by PM-10 natural events, May 30, 1996.

        ‘(C) Appendices I, K, and N to part 50 of title 40, Code of Federal Regulations.’.

SEC. 1619. CONFORMING AMENDMENTS.

    Section 176(c)(4) of the Clean Air Act (42 U.S.C. 7506(c)(4) is amended--

      (1) by redesignating subparagraphs (B) through (D) as subparagraphs (D) through (F), respectively;

      (2) by striking ‘(4)(A) No later than one year after the date of enactment of the Clean Air Act Amendments of 1990, the Administrator shall promulgate’ and inserting the following:

      ‘(4) CRITERIA AND PROCEDURES FOR DETERMINING CONFORMITY-

        ‘(A) IN GENERAL- The Administrator shall promulgate, and periodically update,’;

      (3) in subparagraph (A)--

        (A) in the second sentence, by striking ‘No later than one year after such date of enactment, the Administrator, with the concurrence of the Secretary of Transportation, shall promulgate’ and inserting the following:

        ‘(B) TRANSPORTATION PLANS, PROGRAMS, AND PROJECTS- The Administrator, with the concurrence of the Secretary of Transportation, shall promulgate, and periodically update,’; and

        (B) in the third sentence, by striking ‘A suit’ and inserting the following:

        ‘(C) CIVIL ACTION TO COMPEL PROMULGATION- A civil action’; and

      (4) by striking subparagraph (E) (as redesignated by paragraph (1)) and inserting the following:

        ‘(E) INCLUSION OF CRITERIA AND PROCEDURES IN SIP- Not later than 2 years after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the procedures under subparagraph (A) shall include a requirement that each State include in the State implementation plan criteria and procedures for consultation in accordance with the Administrator’s criteria and procedures for consultation required by subparagraph (D)(i).’.

SEC. 1620. HIGHWAY STORMWATER DISCHARGE MITIGATION PROGRAM.

    (a) HIGHWAY STORMWATER MITIGATION PROJECTS- Section 133(d) of title 23, United States Code (as amended by section 1401(a)(2)(B)), is amended by adding at the end the following:

      ‘(5) HIGHWAY STORMWATER DISCHARGE MITIGATION PROJECTS- Of the amount apportioned to a State under section 104(b)(3) for a fiscal year, 2 percent shall be available only for projects and activities carried out under section 167.’.

    (b) HIGHWAY STORMWATER DISCHARGE MITIGATION PROGRAM- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1601(a)), is amended by adding at the end the following:

‘Sec. 167. Highway stormwater discharge mitigation program

    ‘(a) DEFINITIONS- In this section:

      ‘(1) ADMINISTRATOR- The term ‘Administrator’ means the Administrator of the Environmental Protection Agency.

      ‘(2) ELIGIBLE MITIGATION PROJECT- The term ‘eligible mitigation project’ means a practice or technique that--

        ‘(A) improves stormwater discharge water quality;

        ‘(B) attains preconstruction hydrology;

        ‘(C) promotes infiltration of stormwater into groundwater;

        ‘(D) recharges groundwater;

        ‘(E) minimizes stream bank erosion;

        ‘(F) promotes natural filters;

        ‘(G) otherwise mitigates water quality impacts of highway stormwater discharges, improves surface water quality, or enhances groundwater recharge; or

        ‘(H) reduces flooding caused by highway stormwater discharge.

      ‘(3) FEDERAL-AID HIGHWAY AND ASSOCIATED FACILITY- The term ‘Federal-aid highway and associated facility’ means--

        ‘(A) a Federal-aid highway; or

        ‘(B) a facility or land owned by a State (or political subdivision of a State) that is directly associated with the Federal-aid highway.

      ‘(4) HIGHWAY STORMWATER DISCHARGE- The term ‘highway stormwater discharge’ means stormwater discharge from a Federal-aid highway, or a Federal-aid highway and associated facility, that was constructed before the date of enactment of this section.

      ‘(5) HIGHWAY STORMWATER DISCHARGE MITIGATION- The term ‘highway stormwater discharge mitigation’ means--

        ‘(A) the reduction of water quality impacts of stormwater discharges from Federal-aid highways or Federal-aid highways and associated facilities; or

        ‘(B) the enhancement of groundwater recharge from stormwater discharges from Federal-aid highways or Federal-aid highways and associated facilities.

      ‘(6) PROGRAM- The term ‘program’ means the highway stormwater discharge mitigation program established under subsection (b).

    ‘(b) ESTABLISHMENT- The Secretary shall establish a highway stormwater discharge mitigation program--

      ‘(1) to improve the quality of stormwater discharge from Federal-aid highways or Federal-aid highways and associated facilities; and

      ‘(2) to enhance groundwater recharge.

    ‘(c) PRIORITY OF PROJECTS- For projects funded from the allocation under section 133(d)(6), a State shall give priority to projects sponsored by a State or local government that assist the State or local government in complying with the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).

    ‘(d) GUIDANCE-

      ‘(1) IN GENERAL- Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Administrator, shall issue guidance to assist States in carrying out this section.

      ‘(2) REQUIREMENTS FOR GUIDANCE- The guidance issued under paragraph (1) shall include information concerning innovative technologies and nonstructural best management practices to mitigate highway stormwater discharges.’.

    (c) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1601(b), is amended by inserting after the item relating to section 166 the following:

      ‘167. Highway stormwater discharge mitigation program.’.

SEC. 1621. EXEMPTION FROM CERTAIN HAZARDOUS MATERIALS TRANSPORTATION REQUIREMENTS.

    (a) DEFINITION OF ELIGIBLE PERSON- In this section, the term ‘eligible person’ means an agricultural producer that has gross agricultural commodity sales that do not exceed $500,000.

    (b) EXEMPTION- Subject to subsection (c), part 172 of title 49, Code of Federal Regulations, shall not apply to an eligible person that transports a fertilizer, pesticide, propane, gasoline, or diesel fuel for agricultural purposes, to the extent determined by the Secretary.

    (c) APPLICABILITY- Subsection (b) applies to security plan requirements under subpart I of part 172 of title 49, Code of Federal Regulations (or a successor regulation).

SEC. 1622. FUNDS FOR REBUILDING FISH STOCKS.

    Section 105 of the Miscellaneous Appropriations and Offsets Act, 2004 (Division H of the Consolidated Appropriations Act, 2004 (Public Law 108-199)) is repealed.

Subtitle G--Operations

SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.

    (a) SURFACE TRANSPORTATION PROGRAM ELIGIBILITY- Section 133(b) of title 23, United States Code (as amended by section 1601(a)(2)), is amended by adding at the end the following:

      ‘(16) Regional transportation operations collaboration and coordination activities that are associated with regional improvements, such as traffic incident management, technology deployment, emergency management and response, traveler information, and regional congestion relief.

      ‘(17) RUSH HOUR CONGESTION RELIEF-

        ‘(A) IN GENERAL- Subject to subparagraph (B), a State may spend the funds apportioned under this section to reduce traffic delays caused by motor vehicle accidents and breakdowns on highways during peak driving times.

        ‘(B) USE OF FUNDS- A State, metropolitan planning organization, or local government may use the funds under subparagraph (A)--

          ‘(i) to develop a region-wide coordinated plan to mitigate traffic delays caused by motor vehicle accidents and breakdowns;

          ‘(ii) to purchase or lease telecommunications equipment for first responders;

          ‘(iii) to purchase or lease towing and recovery services;

          ‘(iv) to pay contractors for towing and recovery;

          ‘(v) to rent vehicle storage areas adjacent to roadways;

          ‘(vi) to fund service patrols, equipment, and operations;

          ‘(vii) to purchase incident detection equipment;

          ‘(viii) to carry out training.’.

    (b) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM ELIGIBILITY- Section 149(b)(5) of title 23, United States Code, is amended by inserting ‘improve transportation systems management and operations,’ after ‘intersections,’.

    (c) TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS-

      (1) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1620(b)), is amended by adding at the end the following:

‘Sec. 168. Transportation systems management and operations

    ‘(a) IN GENERAL- The Secretary shall carry out a transportation systems management and operations program to--

      ‘(1) ensure efficient and effective transportation systems management and operations on Federal-aid highways through collaboration, coordination, and real-time information sharing at a regional and Statewide level among--

        ‘(A) managers and operators of major modes of transportation;

        ‘(B) public safety officials; and

        ‘(C) the general public; and

      ‘(2) manage and operate Federal-aid highways in a coordinated manner to preserve the capacity and maximize the performance of highway and transit facilities for travelers and carriers.

    ‘(b) AUTHORIZED ACTIVITIES-

      ‘(1) IN GENERAL- In carrying out the program under subsection (a), the Secretary may carry out activities to--

        ‘(A) encourage managers and operators of major modes of transportation, public safety officials, and transportation planners in urbanized areas that are responsible for conducting the day-to-day management, operations, public safety, and planning of transportation facilities and services to collaborate on and coordinate, on a regional level and in a continuous and sustained manner, improved transportation systems management and operations; and

        ‘(B) encourage States to--

          ‘(i) establish a system of basic real-time monitoring for the surface transportation system; and

          ‘(ii) provide the means to share the data gathered under clause (i) among--

            ‘(I) highway, transit, and public safety agencies;

            ‘(II) jurisdictions (including States, cities, counties, and metropolitan planning organizations);

            ‘(III) private-sector entities; and

            ‘(IV) the general public.

      ‘(2) ACTIVITIES- Activities to be carried out under paragraph (1) include--

        ‘(A) developing a regional concept of operations that defines a regional strategy shared by all transportation and public safety participants with respect to the manner in which the transportation systems of the region should be managed, operated, and measured;

        ‘(B) the sharing of information among operators, service providers, public safety officials, and the general public; and

        ‘(C) guiding, in a regionally-coordinated manner and in a manner consistent with and integrated into the metropolitan and statewide transportation planning processes and regional intelligent transportation system architecture, the implementation of regional transportation system management and operations initiatives, including--

          ‘(i) emergency evacuation and response;

          ‘(ii) traffic incident management;

          ‘(iii) technology deployment; and

          ‘(iv) traveler information systems delivery.

    ‘(c) COOPERATION- In carrying out the program under subsection (a), the Secretary may assist and cooperate with other Federal agencies, State and local governments, metropolitan planning organizations, private industry, and other interested parties to improve regional collaboration and real-time information sharing between managers and operators of major modes of transportation, public safety officials, emergency managers, and the general public to increase the security, safety, and reliability of Federal-aid highways.

    ‘(d) GUIDANCE; REGULATIONS-

      ‘(1) IN GENERAL- In carrying out the program under subsection (a), the Secretary may issue guidance or promulgate regulations for the procurement of transportation system management and operations facilities, equipment, and services, including--

        ‘(A) equipment procured in preparation for natural disasters, disasters caused by human activity, and emergencies;

        ‘(B) system hardware;

        ‘(C) software; and

        ‘(D) software integration services.

      ‘(2) CONSIDERATIONS- In developing the guidance or regulations under paragraph (1), the Secretary may consider innovative procurement methods that support the timely and streamlined execution of transportation system management and operations programs and projects.

      ‘(3) FINANCIAL ASSISTANCE- The Secretary may authorize the use of funds made available under section 104(b)(3) to provide assistance for regional operations collaboration and coordination activities that are associated with regional improvements, such as--

        ‘(A) traffic incident management;

        ‘(B) technology deployment;

        ‘(C) emergency management and response;

        ‘(D) traveler information; and

        ‘(E) congestion relief.’.

      (2) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1620(c)), is amended by adding at the end:

      ‘168. Transportation systems management and operations.’.

SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1701(c)(1)), is amended by adding at the end the following:

‘Sec. 169. Real-time system management information program

    ‘(a) IN GENERAL- The Secretary shall carry out a real-time system management information program to--

      ‘(1) provide a nationwide system of basic real-time information for managing and operating the surface transportation system;

      ‘(2)(A) identify long-range real-time highway and transit monitoring needs; and

      ‘(B) develop plans and strategies for meeting those needs;

      ‘(3) provide the capability and means to share the basic real-time information with State and local governments and the traveling public; and

      ‘(4) provide the nationwide capability to monitor, in real-time, the traffic and travel conditions of major highways in the United States, and to share that information with State and local governments and the traveling public, to--

        ‘(A) improve the security of the surface transportation system;

        ‘(B) address congestion problems;

        ‘(C) support improved response to weather events; and

        ‘(D) facilitate the distribution of national and regional traveler information.

    ‘(b) DATA EXCHANGE FORMATS- Not later than 1 year after the date of enactment of this section, the Secretary shall establish data exchange formats to ensure that the data provided by highway and transit monitoring systems (including statewide incident reporting systems) can readily be exchanged between jurisdictions to facilitate the nationwide availability of information on traffic and travel conditions.

    ‘(c) STATEWIDE INCIDENT REPORTING SYSTEM- Not later than 2 years after the date of enactment of this section, or not later than 5 years after the date of enactment of this section if the Secretary determines that adequate real-time communications capability will not be available within 2 years after the date of enactment of this section, each State shall establish a statewide incident reporting system to facilitate the real-time electronic reporting of highway and transit incidents to a central location for use in--

      ‘(1) monitoring an incident;

      ‘(2) providing accurate traveler information on the incident; and

      ‘(3) responding to the incident as appropriate.

    ‘(d) REGIONAL ITS ARCHITECTURE-

      ‘(1) IN GENERAL- In developing or updating regional intelligent transportation system architectures under section 940.9 of title 23, Code of Federal Regulations (or any successor regulation), States and local governments shall address--

        ‘(A) the real-time highway and transit information needs of the State or local government, including coverage, monitoring systems, data fusion and archiving, and methods of exchanging or sharing information; and

        ‘(B) the systems needed to meet those needs.

      ‘(2) DATA EXCHANGE FORMATS- In developing or updating regional intelligent transportation system architectures, States and local governments are encouraged to incorporate the data exchange formats developed by the Secretary under subsection (b) to ensure that the data provided by highway and transit monitoring systems can readily be--

        ‘(A) exchanged between jurisdictions; and

        ‘(B) shared with the traveling public.

    ‘(e) ELIGIBLE FUNDING- Subject to project approval by the Secretary, a State may--

      ‘(1) use funds available to the State under section 505(a) to carry out activities relating to the planning of real-time monitoring elements; and

      ‘(2) use funds apportioned to the State under paragraphs (1) and (3) of section 104(b) to carry out activities relating to the planning and deployment of real-time monitoring elements.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1701(c)(2)), is amended adding at the end the following:

      ‘169. Real-time system management information program.’.

SEC. 1703. CONTRACTING FOR ENGINEERING AND DESIGN SERVICES.

    Section 112(b)(2) of title 23, United States Code, is amended--

      (1) in subparagraph (A), by striking ‘title 40’ and all that follows through the period and inserting ‘title 40.’;

      (2) by striking subparagraph (B);

      (3) by redesignating subparagraphs (C) through (F) as subparagraphs (B) through (E), respectively; and

      (4) by striking subparagraph (G).

SEC. 1704. OFF-DUTY TIME FOR DRIVERS OF COMMERCIAL VEHICLES.

    Section 345(a)(2) of the National Highway System Designation Act of 1995 (49 U.S.C. 31136 note; 109 Stat. 613) is amended by adding at the end the following: ‘No additional off-duty time for a driver of such a vehicle shall be required in order for the driver to operate the vehicle.’.

SEC. 1705. DESIGNATION OF TRANSPORTATION MANAGEMENT AREAS.

    (a) FUNDING- Section 134(d)(3)(C)(ii) of title 23, United States Code, is amended by striking subclause (II) and inserting the following:

            ‘(II) FUNDING- In addition to funds made available to the metropolitan planning organization for the Lake Tahoe Region under this title and chapter 53 of title 49, 1 percent of all funds distributed under section 202 shall be used to carry out the transportation planning process for the Lake Tahoe region under this subparagraph.’.

    (b) SPECIAL DESIGNATION- Section 134(i)(1) of title 23, United States Code, is amended by adding at the end the following:

        ‘(C) SPECIAL DESIGNATION-

          ‘(i) IN GENERAL- The urbanized areas of Oklahoma City, Oklahoma, and Norman, Oklahoma, shall be designated as a single transportation management area.

          ‘(ii) ALLOCATION- The allocation of funds to the Oklahoma City-Norman Transportation Management Area designated under clause (i) shall be based on the aggregate population of the 2 urbanized areas referred to in that clause, as determined by the Bureau of the Census.’.

Subtitle H--Federal-Aid Stewardship

SEC. 1801. FUTURE INTERSTATE SYSTEM ROUTES.

    Section 103(c)(4)(B) of title 23, United States Code, is amended--

      (1) in clause (ii), by striking ‘12’ and inserting ‘25’; and

      (2) in clause (iii)--

        (A) in subclause (I), by striking ‘in the agreement between the Secretary and the State or States’; and

        (B) by adding at the end the following:

            ‘(III) EXISTING AGREEMENTS- An agreement described in clause (ii) that is entered into before the date of enactment of this subparagraph shall be deemed to include the 25-year time limitation described in that clause, regardless of any earlier construction completion date in the agreement.’.

SEC. 1802. STEWARDSHIP AND OVERSIGHT.

    (a) IN GENERAL- Section 106 of title 23, United States Code, is amended--

      (1) by striking subsection (e) and inserting the following:

    ‘(e) VALUE ENGINEERING ANALYSIS-

      ‘(1) DEFINITION OF VALUE ENGINEERING ANALYSIS-

        ‘(A) IN GENERAL- In this subsection, the term ‘value engineering analysis’ means a systematic process of review and analysis of a project, during the concept and design phases, by a multidisciplined team of persons not involved in the project, that is conducted to provide recommendations such as those described in subparagraph (B) for--

          ‘(i) providing the needed functions safely, reliably, and at the lowest overall cost; and

          ‘(ii) improving the value and quality of the project.

        ‘(B) INCLUSIONS- The recommendations referred to in subparagraph (A) include, with respect to a project--

          ‘(i) combining or eliminating otherwise inefficient use of costly parts of the original proposed design for the project; and

          ‘(ii) completely redesigning the project using different technologies, materials, or methods so as to accomplish the original purpose of the project.

      ‘(2) ANALYSIS- The State shall provide a value engineering analysis or other cost-reduction analysis for--

        ‘(A) each project on the Federal-Aid System with an estimated total cost of $25,000,000 or more;

        ‘(B) a bridge project with an estimated total cost of $20,000,000 or more; and

        ‘(C) any other project the Secretary determines to be appropriate.

      ‘(3) MAJOR PROJECTS- The Secretary may require more than 1 analysis described in paragraph (2) for a major project described in subsection (h).

      ‘(4) REQUIREMENTS- Analyses described in paragraph (1) for a bridge project shall--

        ‘(A) include bridge substructure requirements based on construction material; and

        ‘(B) be evaluated--

          ‘(i) on engineering and economic bases, taking into consideration acceptable designs for bridges; and

          ‘(ii) using an analysis of life-cycle costs and duration of project construction.’; and

      (2) by striking subsections (g) and (h) and inserting the following:

    ‘(g) OVERSIGHT PROGRAM-

      ‘(1) PROGRAM-

        ‘(A) IN GENERAL- The Secretary shall establish an oversight program to monitor the effective and efficient use of funds made available under this title.

        ‘(B) MINIMUM REQUIREMENTS- At a minimum, the program shall monitor and respond to all areas relating to financial integrity and project delivery.

      ‘(2) FINANCIAL INTEGRITY-

        ‘(A) FINANCIAL MANAGEMENT SYSTEMS-

          ‘(i) IN GENERAL- The Secretary shall perform annual reviews of the financial management systems of State transportation departments that affect projects approved under subsection (a).

          ‘(ii) REVIEW AREAS- In carrying out clause (i), the Secretary shall use risk assessment procedures to identify areas to be reviewed.

        ‘(B) PROJECT COSTS- The Secretary shall--

          ‘(i) develop minimum standards for estimating project costs; and

          ‘(ii) periodically evaluate practices of the States for--

            ‘(I) estimating project costs;

            ‘(II) awarding contracts; and

            ‘(III) reducing project costs.

        ‘(C) RESPONSIBILITY OF THE STATES-

          ‘(i) IN GENERAL- Each State shall be responsible for ensuring that subrecipients of Federal funds within the State under this section have--

            ‘(I) sufficient accounting controls to properly manage the Federal funds; and

            ‘(II) adequate project delivery systems for projects approved under this section.

          ‘(ii) REVIEW BY SECRETARY- The Secretary shall periodically review monitoring by the States of those subrecipients.

      ‘(3) PROJECT DELIVERY- The Secretary shall--

        ‘(A) perform annual reviews of the project delivery system of each State, including analysis of 1 or more activities that are involved in the life cycle of a project; and

        ‘(B) employ risk assessment procedures to identify areas to be reviewed.

      ‘(4) SPECIFIC OVERSIGHT RESPONSIBILITIES- Nothing in this section discharges or otherwise affects any oversight responsibility of the Secretary--

        ‘(A) specifically provided for under this title or other Federal law; or

        ‘(B) for the design and construction of all Appalachian development highways under section 14501 of title 40 or section 170 of this title.

    ‘(h) MAJOR PROJECTS-

      ‘(1) IN GENERAL- Notwithstanding any other provision of this section, a recipient of Federal financial assistance for a project under this title with an estimated total cost of $1,000,000,000 or more, and recipients for such other projects as may be identified by the Secretary, shall submit to the Secretary for each project--

        ‘(A) a project management plan; and

        ‘(B) an annual financial plan.

      ‘(2) PROJECT MANAGEMENT PLAN- A project management plan shall document--

        ‘(A) the procedures and processes that are in effect to provide timely information to the project decisionmakers to effectively manage the scope, costs, schedules, and quality of, and the Federal requirements applicable to, the project; and

        ‘(B) the role of the agency leadership and management team in the delivery of the project.

      ‘(3) FINANCIAL PLAN- A financial plan shall--

        ‘(A) be based on detailed estimates of the cost to complete the project; and

        ‘(B) 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.

    ‘(i) OTHER PROJECTS- A recipient of Federal financial assistance for a project under this title that receives $100,000,000 or more in Federal assistance for the project, and that is not covered by subsection (h), shall prepare, and make available to the Secretary at the request of the Secretary, an annual financial plan for the project.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 114(a) of title 23, United States Code, is amended--

        (A) in the first sentence by striking ‘highways or portions of highways located on a Federal-aid system’ and inserting ‘Federal-aid highway or a portion of a Federal-aid highway’; and

        (B) by striking the second sentence and inserting ‘The Secretary shall have the right to conduct such inspections and take such corrective action as the Secretary determines to be appropriate.’.

      (2) Section 117 of title 23, United States Code, is amended--

        (A) by striking subsection (d); and

        (B) by redesignating subsections (e) through (h) as subsections (d) through (g), respectively.

    (c) CONTRACTOR SUSPENSION AND DEBARMENT POLICY; SHARING FRAUD MONETARY RECOVERIES-

      (1) IN GENERAL- Section 307 of title 49, United States Code, is amended to read as follows:

‘Sec. 307. Contractor suspension and debarment policy; sharing fraud monetary recoveries

    ‘(a) MANDATORY ENFORCEMENT POLICY-

      ‘(1) IN GENERAL- Notwithstanding any other provision of law, the Secretary--

        ‘(A) shall debar any contractor or subcontractor convicted of a criminal or civil offense involving fraud relating to a project receiving Federal highway or transit funds for such period as the Secretary determines to be appropriate; and

        ‘(B) subject to approval by the Attorney General--

          ‘(i) except as provided in paragraph (2), shall suspend any contractor or subcontractor upon indictment for criminal or civil offenses involving fraud; and

          ‘(ii) may exclude nonaffiliated subsidiaries of a debarred business entity.

      ‘(2) NATIONAL SECURITY EXCEPTION- If the Secretary finds that mandatory debarment or suspension of a contractor or subcontractor under paragraph (1) would be contrary to the national security of the United States, the Secretary--

        ‘(A) may waive the debarment or suspension; and

        ‘(B) in the instance of each waiver, shall provide notification to Congress of the waiver with appropriate details.

    ‘(b) SHARING OF MONETARY RECOVERIES-

      ‘(1) IN GENERAL- Notwithstanding any other provision of law--

        ‘(A) monetary judgments accruing to the Federal Government from judgments in Federal criminal prosecutions and civil judgments pertaining to fraud in highway and transit programs shall be shared with the State or local transit agency involved; and

        ‘(B) the State or local transit agency shall use the funds for transportation infrastructure and oversight activities relating to programs authorized under title 23 and this title.

      ‘(2) AMOUNT- The amount of recovered funds to be shared with an affected State or local transit agency shall be--

        ‘(A) determined by the Attorney General, in consultation with the Secretary; and

        ‘(B) considered to be Federal funds to be used in compliance with other relevant Federal transportation laws (including regulations).

      ‘(3) FRAUDULENT ACTIVITY- Paragraph (1) shall not apply in any case in which a State or local transit agency is found by the Attorney General, in consultation with the Secretary, to have been involved or negligent with respect to the fraudulent activities.’.

      (2) CONFORMING AMENDMENT- The analysis for chapter 3 of title 49, United States Code, is amended by striking the item relating to section 307 and inserting the following:

      ‘307. Contractor suspension and debarment policy; sharing fraud monetary recoveries.’.

SEC. 1803. DESIGN-BUILD CONTRACTING.

    Section 112(b)(3) of title 23, United States Code, is amended by striking subparagraph (C) and inserting the following:

        ‘(C) QUALIFIED PROJECTS- A qualified project referred to in subparagraph (A) is a project under this chapter (including intermodal projects) for which the Secretary has approved the use of design-build contracting under criteria specified in regulations promulgated by the Secretary.’.

SEC. 1804. PROGRAM EFFICIENCIES--FINANCE.

    (a) ADVANCE CONSTRUCTION- Section 115 of title 23, United States Code, is amended--

      (1) by redesignating subsection (c) as subsection (d);

      (2) by redesignating subsections (a)(2), (a)(2)(A), and (a)(2)(B) as subsections (c), (c)(1), and (c)(2), respectively, and indenting appropriately;

      (3) by striking ‘(a) CONGESTION’ and all that follows through subsection (a)(1)(B);

      (4) by striking subsection (b); and

      (5) by inserting after the section heading the following:

    ‘(a) IN GENERAL- The Secretary may authorize a State to proceed with a project authorized under this title--

      ‘(1) without the use of Federal funds; and

      ‘(2) in accordance with all procedures and requirements applicable to the project other than those procedures and requirements that limit the State to implementation of a project--

        ‘(A) with the aid of Federal funds previously apportioned or allocated to the State; or

        ‘(B) with obligation authority previously allocated to the State.

    ‘(b) OBLIGATION OF FEDERAL SHARE- The Secretary, on the request of a State and execution of a project agreement, may obligate all or a portion of the Federal share of the project authorized under this section from any category of funds for which the project is eligible.’.

    (b) OBLIGATION AND RELEASE OF FUNDS- Section 118 of title 23, United States Code, is amended by striking subsection (d) and inserting the following:

    ‘(d) OBLIGATION AND RELEASE OF FUNDS-

      ‘(1) IN GENERAL- Funds apportioned or allocated to a State for a particular purpose for any fiscal year shall be considered to be obligated if a sum equal to the total of the funds apportioned or allocated to the State for that purpose for that fiscal year and previous fiscal years is obligated.

      ‘(2) RELEASED FUNDS- Any funds released by the final payment for a project, or by modifying the project agreement for a project, shall be--

        ‘(A) credited to the same class of funds previously apportioned or allocated to the State; and

        ‘(B) immediately available for obligation.

      ‘(3) NET OBLIGATIONS- Notwithstanding any other provision of law (including a regulation), obligations recorded against funds made available under this section shall be recorded and reported as net obligations.’.

SEC. 1805. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS.

    Section 118(c)(1) of title 23, United States Code, is amended--

        (1) by striking ‘$50,000,000’ and all that follows through ‘2003’ and inserting ‘$100,000,000 for each of fiscal years 2004 through 2009’; and

        (2) by striking ‘Transportation Equity Act for the 21st Century’ and inserting ‘Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004’.

SEC. 1806. FEDERAL LANDS HIGHWAYS PROGRAM.

    (a) FEDERAL SHARE PAYABLE-

      (1) IN GENERAL- Section 120(k) of title 23, United States Code, is amended--

        (A) by striking ‘Federal-aid highway’; and

        (B) by striking ‘section 104’ and inserting ‘this title or chapter 53 of title 49’.

      (2) TECHNICAL REFERENCES- Section 120(l) of title 23, United States Code, is amended by striking ‘section 104’ and inserting ‘this title or chapter 53 of title 49’.

    (b) PAYMENTS TO FEDERAL AGENCIES FOR FEDERAL-AID PROJECTS- Section 132 of title 23, United States Code, is amended--

      (1) by striking the first 2 sentences and inserting the following:

    ‘(a) IN GENERAL- In a case in which a proposed Federal-aid project is to be undertaken by a Federal agency in accordance with an agreement between a State and the Federal agency, the State may--

      ‘(1) direct the Secretary to transfer the funds for the Federal share of the project directly to the Federal agency; or

      ‘(2) make such deposit with, or payment to, the Federal agency as is required to meet the obligation of the State under the agreement for the work undertaken or to be undertaken by the Federal agency.

    ‘(b) REIMBURSEMENT- On execution of a project agreement with a State described in subsection (a), the Secretary may reimburse the State, using any available funds, for the estimated Federal share under this title of the obligation of the State deposited or paid under subsection (a)(2).’; and

      (2) in the last sentence, by striking ‘Any sums’ and inserting the following:

    ‘(c) RECOVERY AND CREDITING OF FUNDS- Any sums’.

    (c) ALLOCATIONS- Section 202 of title 23, United States Code, is amended--

      (1) in subsection (a), by striking ‘(a) On October 1’ and all that follows through ‘Such allocation’ and inserting the following:

    ‘(a) ALLOCATION BASED ON NEED-

      ‘(1) IN GENERAL- On October 1 of each fiscal year, the Secretary shall allocate sums authorized to be appropriated for the fiscal year for forest development roads and trails according to the relative needs of the various national forests and grasslands.

      ‘(2) PLANNING- The allocation under paragraph (1)’;

      (2) by striking subsection (b) and inserting the following:

    ‘(b) ALLOCATION FOR PUBLIC LANDS HIGHWAYS-

      ‘(1) PUBLIC LANDS HIGHWAYS-

        ‘(A) IN GENERAL- On October 1 of each fiscal year, the Secretary shall allocate 33 1/3 percent of the sums authorized to be appropriated for that fiscal year for public lands highways among those States having unappropriated or unreserved public lands, or nontaxable Indian lands or other Federal reservations, on the basis of need in the States, respectively, as determined by the Secretary, on application of the State transportation departments of the respective States.

        ‘(B) PREFERENCE- In making the allocation under subparagraph (A), the Secretary shall give preference to those projects that are significantly impacted by Federal land and resource management activities that are proposed by a State that contains at least 3 percent of the total public land in the United States.

      ‘(2) FOREST HIGHWAYS-

        ‘(A) IN GENERAL- On October 1 of each fiscal year, the Secretary shall allocate 66 2/3 percent of the funds authorized to be appropriated for public lands highways for forest highways in accordance with section 134 of the Federal-Aid Highway Act of 1987 (23 U.S.C. 202 note; 101 Stat. 173).

        ‘(B) PUBLIC ACCESS TO AND WITHIN NATIONAL FOREST SYSTEM- In making the allocation under subparagraph (A), the Secretary shall give equal consideration to projects that provide access to and within the National Forest System, as identified by the Secretary of Agriculture through--

          ‘(i) renewable resource and land use planning; and

          ‘(ii) assessments of the impact of that planning on transportation facilities.’;

      (3) in subsection (c)--

        (A) by striking ‘(c) On’ and inserting the following:

    ‘(c) PARK ROADS AND PARKWAYS-

      ‘(1) IN GENERAL- On’; and

        (B) by adding at the end the following:

      ‘(2) PRIORITY-

        ‘(A) DEFINITION OF QUALIFYING NATIONAL PARK- In this paragraph, the term ‘qualifying national park’ means a National Park that is used more than 1,000,000 recreational visitor days per year, based on an average of the 3 most recent years of available data from the National Park Service.

        ‘(B) PRIORITY- Notwithstanding any other provision of law, with respect to funds authorized for park roads and parkways, the Secretary shall give priority in the allocation of funds to projects for highways that--

          ‘(i) are located in, or provide access to, a qualifying National Park; and

          ‘(ii) were initially constructed before 1940.

        ‘(C) PRIORITY CONFLICTS- If there is a conflict between projects described in subparagraph (B), the Secretary shall give highest priority to projects that--

          ‘(i) are in, or that provide access to, parks that are adjacent to a National Park of a foreign country; or

          ‘(ii) are located in more than 1 State;’;

      (4) in subsection (d)--

        (A) in paragraph (1)--

          (i) in the paragraph heading, by striking ‘1999’ and inserting ‘2005’; and

          (ii) by striking ‘1999’ and inserting ‘2005’;

        (B) in paragraph (2)--

          (i) in the paragraph heading, by striking ‘2000’ and inserting ‘2005’;

          (ii) in subparagraphs (A), (B), and (D), by striking ‘2000’ each place it appears and inserting ‘2005’;

          (iii) in subparagraph (B), by striking ‘1999’ each place it appears and inserting ‘2004’; and

          (iv) by adding at the end the following:

        ‘(E) TRANSFERRED FUNDS-

          ‘(i) 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 available for immediate use by, the eligible Indian tribes, in accordance with the formula applicable for each fiscal year.

          ‘(ii) FORMULA- If the Secretary of the Interior has not promulgated final regulations for the distribution of funds under clause (i) for a fiscal year by the date on which the funds for the fiscal year are required to be distributed under that clause, the Secretary of the Interior shall distribute the funds under clause (i) in accordance with the applicable funding formula for the preceding year.

          ‘(iii) USE OF FUNDS- Notwithstanding any other provision of this section, funds available to Indian tribes for Indian reservation roads shall be expended on projects identified in a transportation improvement program approved by the Secretary.’;

        (C) in paragraph (3)--

          (i) in subparagraph (A), by striking ‘under this title’ and inserting ‘under this chapter and section 125(e)’; and

          (ii) by adding at the end the following:

        ‘(C) FEDERAL LANDS HIGHWAY PROGRAM DEMONSTRATION PROJECT-

          ‘(i) IN GENERAL- The Secretary shall establish a demonstration project under which all funds made available under this chapter for Indian reservation roads and for highway bridges located on Indian reservation roads as provided for in subparagraph (A) shall be made available, on the request of an affected 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. 450b et seq.), contracts and agreements for the planning, research, engineering, and construction described in that subparagraph.

          ‘(ii) EXCLUSION OF AGENCY PARTICIPATION- In accordance with subparagraph (B), all funds for Indian reservation roads and for highway bridges located on Indian reservation roads to which clause (i) applies shall be paid without regard to the organizational level at which the Federal lands highway program has previously carried out the programs, functions, services, or activities involved.

          ‘(iii) SELECTION OF PARTICIPATING TRIBES-

            ‘(I) PARTICIPANTS-

‘(aa) IN GENERAL- In addition to Indian tribes or tribal organizations that, as of the date of enactment of this subparagraph, are contracting or compacting for any Indian reservation road function or program, for each fiscal year, the Secretary may select up to 15 Indian tribes from the applicant pool described in subclause (II) to participate in the demonstration project carried out under clause (i).

‘(bb) CONSORTIA- Two or more Indian tribes that are otherwise eligible to participate in a program or activity to which this title applies may form a consortium to be considered as a single Indian tribe for the purpose of becoming part of the applicant pool under subclause (II).

‘(cc) FUNDING- An Indian tribe participating in the pilot program under this subparagraph shall receive funding in an amount equal to the sum of the funding that the Indian tribe would otherwise receive in accordance with the funding formula established under the other provisions of this subsection, and an additional percentage of that amount equal to the percentage of funds withheld during the applicable fiscal year for the road program management costs of the Bureau of Indian Affairs under subsection (f)(1).

            ‘(II) APPLICANT POOL- The applicant pool described in this subclause shall consist of each Indian tribe (or consortium) that--

‘(aa) has successfully completed the planning phase described in subclause (IV);

‘(bb) has requested participation in the demonstration project under this subparagraph through the adoption of a resolution or other official action by the tribal governing body; and

‘(cc) has demonstrated financial stability and financial management capability in accordance with subclause (III) during the 3-fiscal-year period immediately preceding the fiscal year for which participation under this subparagraph is being requested.

            ‘(III) CRITERIA FOR DETERMINING FINANCIAL STABILITY AND FINANCIAL MANAGEMENT CAPACITY- For the purpose of subclause (II), evidence that, during the 3-year period referred to in subclause (II)(cc), an Indian tribe had no uncorrected significant and material audit exceptions in the required annual audit of the Indian tribe’s self-determination contracts or self-governance funding agreements with any Federal agency shall be conclusive evidence of the required stability and capability.

            ‘(IV) PLANNING PHASE-

‘(aa) IN GENERAL- An Indian tribe (or consortium) requesting participation in the demonstration project under this subparagraph shall complete a planning phase that shall include legal and budgetary research and internal tribal government and organization preparation.

‘(bb) ELIGIBILITY- An Indian tribe (or consortium) described in item (aa) shall be eligible to receive a grant under this subclause to plan and negotiate participation in a project described in that item.

            ‘(V) REPORT TO CONGRESS- Not later than September 30, 2006, the Secretary shall submit to Congress a report describing the implementation of the demonstration project and any recommendations for improving the project.’; and

        (D) in paragraph (4)--

          (i) in subparagraph (B)--

            (I) by striking ‘(B) RESERVATION- Of the amounts’ and all that follows through ‘to replace,’ and inserting the following:

        ‘(B) FUNDING-

          ‘(i) AUTHORIZATION OF APPROPRIATIONS- In addition to any other funds made available for Indian reservation roads for each fiscal year, there is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) $15,000,000 for each of fiscal years 2004 through 2009 to carry out planning, design, engineering, preconstruction, construction, and inspection of projects to replace,’; and

            (II) by adding at the end the following:

          ‘(ii) AVAILABILITY- Funds made available to carry out this subparagraph shall be available for obligation in the same manner as if the funds were apportioned under chapter 1.’; and

          (ii) by striking subparagraph (D) and inserting the following:

        ‘(D) APPROVAL REQUIREMENT-

          ‘(i) IN GENERAL- Subject to clause (ii), on request by an Indian tribe or the Secretary of the Interior, the Secretary may make funds available under this subsection for preliminary engineering for Indian reservation road bridge projects.

          ‘(ii) CONSTRUCTION AND CONSTRUCTION ENGINEERING- The Secretary may make funds available under clause (i) for construction and construction engineering only after approval by the Secretary of applicable plans, specifications, and estimates.’; and

      (5) by adding at the end the following:

    ‘(f) ADMINISTRATION OF INDIAN RESERVATION ROADS-

      ‘(1) CONTRACT AUTHORITY- Notwithstanding any other provision of law, for any fiscal year, not more than 6 percent of the contract authority amounts made available from the Highway Trust Fund to the Bureau of Indian Affairs under this title shall be used to pay the expenses incurred by the Bureau in administering the Indian reservation roads program (including the administrative expenses relating to individual projects associated with the Indian reservation roads program).

      ‘(2) HEALTH AND SAFETY ASSURANCES- Notwithstanding any other provision of law, an Indian tribe or tribal organization may commence road and bridge construction under the Transportation Equity Act for the 21st Century (Public Law 105-178) or the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 that is funded through a contract or agreement under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b et seq.) if the Indian tribe or tribal organization--

        ‘(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 licensed professional 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 (B) to the Assistant Secretary for Indian Affairs.’.

    (d) PLANNING AND AGENCY COORDINATION- Section 204 of title 23, United States Code, is amended--

      (1) in subsection (a)(1), by inserting ‘refuge roads, recreation roads,’ after ‘parkways,’;

      (2) by striking subsection (b) and inserting the following:

    ‘(b) USE OF FUNDS-

      ‘(1) IN GENERAL- Funds available for public lands highways, recreation roads, park roads and parkways, forest highways, and Indian reservation roads shall be used by the Secretary and the Secretary of the appropriate Federal land management agency to pay the cost of transportation planning, research, engineering, operation and maintenance of transit facilities, and construction of the highways, roads, parkways, forest highways, and transit facilities located on public land, national parks, and Indian reservations.

      ‘(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 construction contract or other appropriate agreement with--

        ‘(A) a State (including a political subdivision of a State); or

        ‘(B) an Indian tribe.

      ‘(3) INDIAN RESERVATION ROADS- In the case of an Indian reservation road--

        ‘(A) Indian labor may be used, 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); and

        ‘(B) funds made available to carry out this section may be used to pay bridge preconstruction costs (including planning, design, and engineering).

      ‘(4) FEDERAL EMPLOYMENT- No maximum on Federal employment shall be applicable to construction or improvement of Indian reservation roads.

      ‘(5) AVAILABILITY OF FUNDS- Funds available under this section for each class of Federal lands highway shall be available for any kind of transportation project eligible for assistance under this title that is within or adjacent to, or that provides access to, the areas served by the particular class of Federal lands highway.

      ‘(6) RESERVATION OF FUNDS- The Secretary of the Interior may reserve funds from administrative funds of the Bureau of Indian Affairs that are associated with the Indian reservation road program to finance the Indian technical centers authorized under section 504(b).’; and

      (3) in subsection (k)(1)--

        (A) in subparagraph (B)--

          (i) by striking ‘(2), (5),’ and inserting ‘(2), (3), (5),’; and

          (ii) by striking ‘and’ after the semicolon;

        (B) in subparagraph (C), by striking the period at the end and inserting a semicolon; and

        (C) by adding at the end the following:

        ‘(D) maintenance of public roads in national fish hatcheries under the jurisdiction of the United States Fish and Wildlife Service;

        ‘(E) the non-Federal share of the cost of any project funded under this title or chapter 53 of title 49 that provides access to or within a wildlife refuge; and

        ‘(F) maintenance and improvement of recreational trails (except that expenditures on trails under this subparagraph shall not exceed 5 percent of available funds for each fiscal year).’.

    (e) MAINTENANCE OF INDIAN RESERVATION ROADS- Section 204(c) of title 23, United States Code, is amended by striking the second and third sentences and inserting the following: ‘Notwithstanding any other provision of this title, of the amount of funds apportioned for Indian reservation roads from the Highway Trust Fund, an Indian tribe may expend for the purpose of maintenance not more than the greater of $250,000 or 25 percent of the apportioned amount. The Bureau of Indian Affairs shall continue to retain primary responsibility, including annual funding request responsibility, for road maintenance programs on Indian reservations. The Secretary shall ensure that funding made available under this subsection for maintenance of Indian reservation roads 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.’.

    (e) SAFETY-

      (1) ALLOCATIONS- Section 202 of title 23, United States Code (as amended by subsection (c)(5)), is amended by adding at the end the following:

    ‘(g) SAFETY- Subject to paragraph (2), on October 1 of each fiscal year, the Secretary shall allocate the sums authorized to be appropriated for the fiscal year for safety as follows:

      ‘(1) 12 percent to the Bureau of Reclamation.

      ‘(2) 18 percent to the Bureau of Indian Affairs.

      ‘(3) 17 percent to the Bureau of Land Management.

      ‘(4) 17 percent to the Forest Service.

      ‘(5) 7 percent to the United States Fish and Wildlife Service.

      ‘(6) 17 percent to the National Park Service.

      ‘(7) 12 percent to the Corps of Engineers.’.

      (2) AVAILABILITY OF FUNDS- Section 203 of title 23, United States Code, is amended by inserting ‘safety projects or activities,’ after ‘refuge roads,’ each place it appears.

      (3) USE OF FUNDING- Section 204 of title 23, United States Code, is amended by adding at the end the following:

    ‘(l) SAFETY ACTIVITIES-

      ‘(1) IN GENERAL- Notwithstanding any other provision of this title, funds made available for safety under this title shall be used by the Secretary and the head of the appropriate Federal land management agency only to pay the costs of carrying out--

        ‘(A) transportation safety improvement activities;

        ‘(B) activities to eliminate high-accident locations;

        ‘(C) projects to implement protective measures at, or eliminate, at-grade railway-highway crossings;

        ‘(D) collection of safety information;

        ‘(E) transportation planning projects or activities;

        ‘(F) bridge inspection;

        ‘(G) development and operation of safety management systems;

        ‘(H) highway safety education programs; and

        ‘(I) other eligible safety projects and activities authorized under chapter 4.

      ‘(2) CONTRACTS- In carrying out paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency may enter into contracts or agreements with--

        ‘(A) a State;

        ‘(B) a political subdivision of a State; or

        ‘(C) an Indian tribe.

      ‘(3) EXCEPTION- The cost sharing requirements under the Federal Water Project Recreation Act (16 U.S.C. 460l-12 et seq.) shall not apply to funds made available to the Bureau of Reclamation under this subsection.’.

    (f) RECREATION ROADS-

      (1) AUTHORIZATIONS- Section 201 of title 23, United States Code, is amended in the first sentence by inserting ‘recreation roads,’ after ‘public lands highways,’.

      (2) ALLOCATIONS- Section 202 of title 23, United States Code (as amended by subsection (e)(1)), is amended by adding at the end the following:

    ‘(h) RECREATION ROADS-

      ‘(1) IN GENERAL- Subject to paragraphs (2) and (3), on October 1 of each fiscal year, the Secretary, after completing the transfer under subsection 204(i), shall allocate the sums authorized to be appropriated for the fiscal year for recreation roads as follows:

        ‘(A) 8 percent to the Bureau of Reclamation.

        ‘(B) 9 percent to the Corps of Engineers.

        ‘(C) 13 percent to the Bureau of Land Management.

        ‘(D) 70 percent to the Forest Service.

      ‘(2) ALLOCATION WITHIN AGENCIES- Recreation road funds allocated to a Federal agency under paragraph (1) shall be allocated for projects and activities of the Federal agency according to the relative needs of each area served by recreation roads under the jurisdiction of the Federal agency, as indicated in the approved transportation improvement program for each Federal agency.’.

      (3) AVAILABILITY OF FUNDS- Section 203 of title 23, United States Code, is amended--

        (A) in the first sentence, by inserting ‘recreation roads,’ after ‘Indian reservation roads,’; and

        (B) in the fourth sentence, by inserting ‘, recreation roads,’ after ‘Indian roads’.

      (4) USE OF FUNDING- Section 204 of title 23, United States Code (as amended by subsection (e)(3)), is amended by adding at the end the following:

    ‘(m) RECREATION ROADS-

      ‘(1) IN GENERAL- Notwithstanding any other provision of this title, funds made available for recreation roads under this title shall be used by the Secretary and the Secretary of the appropriate Federal land management agency only to pay the cost of--

        ‘(A) maintenance or improvements of existing recreation roads;

        ‘(B) maintenance and improvements of eligible projects described in paragraph (1), (2), (3), (5), or (6) of subsection (h) that are located in or adjacent to Federal land under the jurisdiction of--

          ‘(i) the Department of Agriculture; or

          ‘(ii) the Department of the Interior;

        ‘(C) transportation planning and administrative activities associated with those maintenance and improvements; and

        ‘(D) the non-Federal share of the cost of any project funded under this title or chapter 53 of title 49 that provides access to or within Federal land described in subparagraph (B).

      ‘(2) CONTRACTS- In carrying out paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency may enter into contracts or agreements with--

        ‘(A) a State;

        ‘(B) a political subdivision of a State; or

        ‘(C) an Indian tribe.

      ‘(3) NEW ROADS- No funds made available under this section shall be used to pay the cost of the design or construction of new recreation roads.

      ‘(4) COMPLIANCE WITH OTHER ENVIRONMENTAL LAWS- A maintenance or improvement project that is funded under this subsection, and that is consistent with or has been identified in a land use plan for an area under the jurisdiction of a Federal agency, shall not require any additional environmental reviews or assessments under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) if--

        ‘(A) the Federal agency that promulgated the land use plan analyzed the specific proposal for the maintenance or improvement project under that Act; and

        ‘(B) as of the date on which the funds are to be expended, there are--

          ‘(i) no significant changes to the proposal bearing on environmental concerns; and

          ‘(ii) no significant new information.

      ‘(5) EXCEPTION- The cost sharing requirements under the Federal Water Project Recreation Act (16 U.S.C. 460l-12 et seq.) shall not apply to funds made available to the Bureau of Reclamation under this subsection.’.

    (g) CONFORMING AMENDMENTS-

      (1) Sections 120(e) and 125(e) of title 23, United States Code, are amended by striking ‘public lands highways,’ each place it appears and inserting ‘public lands highways, recreation roads,’.

      (2) Sections 120(e), 125(e), 201, 202(a), and 203 of title 23, United States Code, are amended by striking ‘forest development roads’ each place it appears and inserting ‘National Forest System roads’.

      (3) Section 202(e) of title 23, United States Code, is amended by striking ‘Refuge System,’ and inserting ‘Refuge System and the various national fish hatcheries,’.

      (4) Section 204 of title 23, United States Code, is amended--

        (A) in subsection (a)(1), by striking ‘public lands highways,’ and inserting ‘public lands highways, recreation roads, forest highways,’; and

        (B) in subsection (i), by striking ‘public lands highways’ each place it appears and inserting ‘public lands highways, recreation roads, and forest highways’.

      (5) Section 205 of title 23, United States Code, is amended--

        (A) by striking the section heading and inserting the following:

‘Sec. 205. National Forest System roads and trails’;

        and

        (B) in subsections (a) and (d), by striking ‘forest development roads’ each place it appears and inserting ‘National Forest System roads’.

      (6) The analysis for chapter 2 of title 23, United States Code, is amended by striking the item relating to section 205 and inserting the following:

      ‘205. National Forest System roads and trails.’.

      (7) Section 217(c) of title 23, United States Code, is amended by inserting ‘refuge roads,’ after ‘Indian reservation roads,’.

SEC. 1807. HIGHWAY BRIDGE PROGRAM.

    (a) IN GENERAL- Section 144 of title 23, United States Code, is amended--

      (1) by striking the section heading and all that follows through subsection (a) and inserting the following:

‘Sec. 144. Highway bridge program

    ‘(a) CONGRESSIONAL STATEMENT- Congress finds and declares that it is in the vital interest of the United States that a highway bridge program be established to enable States to improve the condition of their bridges through replacement, rehabilitation, and systematic preventative maintenance on highway bridges over waterways, other topographical barriers, other highways, or railroads at any time at which the States and the Secretary determine that a bridge is unsafe because of structural deficiencies, physical deterioration, or functional obsolescence.’;

      (2) by striking subsection (d) and inserting the following:

    ‘(d) PARTICIPATION IN PROGRAM-

      ‘(1) IN GENERAL- On application by a State to the Secretary for assistance in replacing or rehabilitating a highway bridge that has been determined to be eligible for replacement or rehabilitation under subsection (b) or (c), the Secretary may approve Federal participation in--

        ‘(A) replacing the bridge with a comparable bridge; or

        ‘(B) rehabilitating the bridge.

      ‘(2) SPECIFIC KINDS OF REHABILITATION- On application by a State to the Secretary for assistance in painting, seismic retrofit, or preventative maintenance of, or installation of scour countermeasures or applying calcium magnesium acetate, sodium acetate/formate, or other environmentally acceptable, minimally corrosive anti-icing and de-icing compositions to, the structure of a highway bridge, the Secretary may approve Federal participation in the painting, seismic retrofit, or preventative maintenance of, or installation of scour countermeasures or application of acetate or sodium acetate/formate or such anti-icing or de-icing composition to, the structure.

      ‘(3) ELIGIBILITY-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), the Secretary shall determine the eligibility of highway bridges for replacement or rehabilitation for each State based on the number of unsafe highway bridges in the State.

        ‘(B) PREVENTATIVE MAINTENANCE- A State may carry out a project for preventative maintenance on a bridge, seismic retrofit of a bridge, or installation of scour countermeasures to a bridge under this section without regard to whether the bridge is eligible for replacement or rehabilitation under this section.’;

      (3) in subsection (e)--

        (A) in the third sentence, by striking ‘square footage’ and inserting ‘area’;

        (B) in the fourth sentence--

          (i) by striking ‘by the total cost of any highway bridges constructed under subsection (m) in such State, relating to replacement of destroyed bridges and ferryboat services, and,’; and

          (ii) by striking ‘1997’ and inserting ‘2003’; and

        (C) in the seventh sentence, by striking ‘the Federal-aid primary system’ and inserting ‘Federal-aid highways’;

      (4) by striking subsections (f) and (g) and inserting the following:

    ‘(f) SET ASIDES-

      ‘(1) DISCRETIONARY BRIDGE PROGRAM-

        ‘(A) IN GENERAL- Of the amounts authorized to be appropriated to carry out the bridge program under this section for each of fiscal years 2004 through 2009, all but $150,000,000 shall be apportioned as provided in subsection (e).

        ‘(B) AVAILABILITY- The $150,000,000 referred to in subparagraph (A) shall be available at the discretion of the Secretary, except that not to exceed $25,000,000 of that amount shall be available only for projects for the seismic retrofit of bridges.

        ‘(C) SET ASIDES- For fiscal year 2004, the Secretary shall provide--

          ‘(i) $50,000,000 to the State of Nevada for construction of a replacement of the federally-owned bridge over the Hoover Dam in the Lake Mead National Recreation Area; and

          ‘(ii) $50,000,000 to the State of Missouri for construction of a structure over the Mississippi River to connect the city of St. Louis, Missouri, to the State of Illinois.

      ‘(2) OFF-SYSTEM BRIDGES-

        ‘(A) IN GENERAL- Not less than 15 percent of the amount apportioned to each State in each of fiscal years 2004 through 2009 shall be expended for projects to replace, rehabilitate, perform systematic preventative maintenance or seismic retrofit, or apply calcium magnesium acetate, sodium acetate/formate, or other environmentally acceptable, minimally corrosive anti-icing and de-icing compositions or install scour countermeasures to highway bridges located on public roads, other than those on a Federal-aid highway, or to complete the Warwick Intermodal Station (including the construction of a people mover between the Station and the T.F. Green Airport).

        ‘(B) REDUCTION OF EXPENDITURES- The Secretary, after consultation with State and local officials, may, with respect to the State, reduce the requirement for expenditure for bridges not on a Federal-aid highway if the Secretary determines that the State has inadequate needs to justify the expenditure.’;

      (5) in subsection (i)--

        (A) in paragraph (3), by striking ‘and’;

        (B) in paragraph (4), by striking the period at the end and inserting ‘; and’;

        (C) by striking ‘Such reports’ and all that follows through ‘to Congress.’; and

        (D) by adding at the end the following:

      ‘(5) biennially submit such reports as are required under this subsection to the appropriate committees of Congress simultaneously with the report required by section 502(g).’;

      (6) in the first sentence of subsection (n), by striking ‘all standards’ and inserting ‘all general engineering standards’;

      (7) in subsection (o)--

        (A) in paragraph (3)--

          (i) by striking ‘title (including this section)’ and inserting ‘section’; and

          (ii) by inserting ‘200 percent of’ after ‘shall not exceed’; and

        (B) in paragraph (4)(B)--

          (i) in the second sentence, by inserting ‘200 percent of’ after ‘not to exceed’; and

          (ii) in the last sentence, by striking ‘title’ and inserting ‘section’;

      (8) by redesignating subsections (h) through (q) as subsections (g) through (p), respectively; and

      (9) by adding at the end the following:

    ‘(q) CONTINUATION OF ANNUAL MATERIALS REPORT ON NEW BRIDGE CONSTRUCTION AND BRIDGE REHABILITATION- Not later than 1 year after the date of enactment of this subsection, and annually thereafter, the Secretary shall publish in the Federal Register a report describing construction materials used in new Federal-aid bridge construction and bridge rehabilitation projects.

    ‘(r) FEDERAL SHARE- The Federal share of the cost of a project payable from funds made available to carry out this section shall be the share applicable under section 120(b), as adjusted under subsection (d) of that section.’.

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

      ‘144. Highway bridge program.’.

SEC. 1808. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1702(a)), is amended by adding at the end the following:

‘Sec. 170. Appalachian development highway system

    ‘(a) APPORTIONMENT-

      ‘(1) IN GENERAL- The Secretary shall apportion funds made available under section 1101(7) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 for fiscal years 2004 through 2009 among States based on the latest available estimate of the cost to construct highways and access roads for the Appalachian development highway system program prepared by the Appalachian Regional Commission under section 14501 of title 40.

      ‘(2) AVAILABILITY- Funds described in paragraph (1) shall be available to construct highways and access roads under chapter 145 of title 40.

    ‘(b) APPLICABILITY OF TITLE- Funds made available under section 1101(7) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 for the Appalachian development highway system shall be available for obligation in the same manner as if the funds were apportioned under this chapter, except that--

      ‘(1) the Federal share of the cost of any project under this section shall be determined in accordance with subtitle IV of title 40; and

      ‘(2) the funds shall remain available until expended.’.

    (b) CONFORMING AMENDMENTS-

      (1) USE OF TOLL CREDITS- Section 120(j)(1) of title 23, United States Code is amended by inserting ‘and the Appalachian development highway system program under subtitle IV of title 40’ after ‘(other than the emergency relief program authorized by section 125’.

      (2) ANALYSIS- The analysis of chapter 1 of title 23, United States Code (as amended by section 1702(b)), is amended by adding at the end the following:

      ‘170. Appalachian development highway system.’.

SEC. 1809. MULTISTATE CORRIDOR PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by 1808(a)), is amended by adding at the end the following:

‘Sec. 171. Multistate corridor program

    ‘(a) ESTABLISHMENT AND PURPOSE- The Secretary shall carry out a program to--

      ‘(1) support and encourage multistate transportation planning and development; and

      ‘(2) facilitate transportation decisionmaking and coordinate project delivery involving multistate corridors.

    ‘(b) ELIGIBLE RECIPIENTS- A State transportation department and a metropolitan planning organization may receive and administer funds provided under this section.

    ‘(c) ELIGIBLE ACTIVITIES- The Secretary shall make allocations under this program for multistate highway and multimodal planning studies and construction.

    ‘(d) OTHER PROVISIONS REGARDING ELIGIBILITY-

      ‘(1) STUDIES- All studies funded under this program shall be consistent with the continuing, cooperative, and comprehensive planning processes required by sections 134 and 135.

      ‘(2) CONSTRUCTION- All construction funded under this program shall be consistent with section 133(b)(1).

    ‘(e) SELECTION CRITERIA- The Secretary shall select studies and projects to be carried out under the program based on--

      ‘(1) the existence and significance of signed and binding multijurisdictional agreements;

      ‘(2) endorsement of the study or project by applicable elected State and local representatives;

      ‘(3) prospects for early completion of the study or project; or

      ‘(4) whether the projects to be studied or constructed are located on corridors identified by section 1105(c) of the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240; 105 Stat. 2032).

    ‘(f) PROGRAM PRIORITIES- In administering the program, the Secretary shall--

      ‘(1) encourage and enable States and other jurisdictions to work together to develop plans for multimodal and multijurisdictional transportation decisionmaking; and

      ‘(2) give priority to studies or projects that emphasize multimodal planning, including planning for operational improvements that--

        ‘(A) increase--

          ‘(i) mobility;

          ‘(ii) freight productivity;

          ‘(iii) access to marine or inland ports;

          ‘(iv) safety and security; and

          ‘(v) reliability; and

        ‘(B) enhance the environment.

    ‘(g) FEDERAL SHARE- Except as provided in section 120, the Federal share of the cost of a study or project carried out under the program, using funds from all Federal sources, shall be 80 percent.

    ‘(h) APPLICABILITY- Funds authorized to be appropriated under section 1101(10) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 to carry out this section shall be available for obligation in the same manner as if the funds were apportioned under this chapter.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1809(b)) is amended by adding at the end the following:

      ‘171. Multistate corridor program.’.

SEC. 1810. BORDER PLANNING, OPERATIONS, TECHNOLOGY, AND CAPACITY PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1809(a)), is amended by adding at the end the following:

‘Sec. 172. Border planning, operations, technology, and capacity program

    ‘(a) DEFINITIONS- In this section:

      ‘(1) BORDER STATE- The term ‘border State’ means any of the States of Alaska, Arizona, California, Idaho, Maine, Michigan, Minnesota, Montana, New Hampshire, New Mexico, New York, North Dakota, Texas, Vermont, and Washington.

      ‘(2) PROGRAM- The term ‘program’ means the border planning, operations, technology, and capacity program established under subsection (b).

    ‘(b) ESTABLISHMENT AND PURPOSE- The Secretary shall establish and carry out a border planning, operations, technology, and capacity improvement program to support coordination and improvement in bi-national transportation planning, operations, efficiency, information exchange, safety, and security at the international borders of the United States with Canada and Mexico.

    ‘(c) ELIGIBLE ACTIVITIES-

      ‘(1) IN GENERAL- The Secretary shall make allocations under the program for projects to carry out eligible activities described in paragraph (2) at or near international land borders in border States.

      ‘(2) ELIGIBLE ACTIVITIES- A border State may obligate funds apportioned to the border State under this section for--

        ‘(A) highway and multimodal planning or environmental studies;

        ‘(B) cross-border port of entry and safety inspection improvements, including operational enhancements and technology applications;

        ‘(C) technology and information exchange activities; and

        ‘(D) right-of-way acquisition, design, and construction, as needed--

          ‘(i) to implement the enhancements or applications described in subparagraphs (B) and (C);

          ‘(ii) to decrease air pollution emissions from vehicles or inspection facilities at border crossings; or

          ‘(iii) to increase highway capacity at or near international borders.

    ‘(d) OTHER PROVISIONS REGARDING ELIGIBILITY-

      ‘(1) IN GENERAL- Each project funded under the program shall be carried out in accordance with the continuing, cooperative, and comprehensive planning processes required by sections 134 and 135.

      ‘(2) REGIONALLY SIGNIFICANT PROJECTS- To be funded under the program, a regionally significant project shall be included on the applicable transportation plan and program required by sections 134 and 135.

    ‘(e) PROGRAM PRIORITIES- Border States shall give priority to projects that emphasize--

      ‘(1) multimodal planning;

      ‘(2) improvements in infrastructure; and

      ‘(3) operational improvements that--

        ‘(A) increase safety, security, freight capacity, or highway access to rail, marine, and air services; and

        ‘(B) enhance the environment.

    ‘(f) MANDATORY PROGRAM-

      ‘(1) IN GENERAL- For each fiscal year, the Secretary shall allocate among border States, in accordance with the formula described in paragraph (2), funds to be used in accordance with subsection (d).

      ‘(2) FORMULA- Subject to paragraph (3), the amount allocated to a border State under this paragraph shall be determined by the Secretary, as follows:

        ‘(A) 25 percent in the ratio that--

          ‘(i) the average annual weight of all cargo entering the border State by commercial vehicle across the international border with Canada or Mexico, as the case may be; bears to

          ‘(ii) the average annual weight of all cargo entering all border States by commercial vehicle across the international borders with Canada and Mexico.

        ‘(B) 25 percent in the ratio that--

          ‘(i) the average trade value of all cargo imported into the border State and all cargo exported from the border State by commercial vehicle across the international border with Canada or Mexico, as the case may be; bears to

          ‘(ii) the average trade value of all cargo imported into all border States and all cargo exported from all border States by commercial vehicle across the international borders with Canada and Mexico.

        ‘(C) 25 percent in the ratio that--

          ‘(i) the number of commercial vehicles annually entering the border State across the international border with Canada or Mexico, as the case may be; bears to

          ‘(ii) the number of all commercial vehicles annually entering all border States across the international borders with Canada and Mexico.

        ‘(D) 25 percent in the ratio that--

          ‘(i) the number of passenger vehicles annually entering the border State across the international border with Canada or Mexico, as the case may be; bears to

          ‘(ii) the number of all passenger vehicles annually entering all border States across the international borders with Canada and Mexico.

      ‘(3) DATA SOURCE-

        ‘(A) IN GENERAL- The data used by the Secretary in making allocations under this subsection shall be based on the Bureau of Transportation Statistics Transborder Surface Freight Dataset (or other similar database).

        ‘(B) BASIS OF CALCULATION- All formula calculations shall be made using the average values for the most recent 5-year period for which data are available.

      ‘(4) MINIMUM ALLOCATION- Notwithstanding paragraph (2), for each fiscal year, each border State shall receive at least 1/2 of 1 percent of the funds made available for allocation under this paragraph for the fiscal year.

    ‘(g) FEDERAL SHARE- Except as provided in section 120, the Federal share of the cost of a project carried out under the program shall be 80 percent.

    ‘(h) OBLIGATION- Funds made available under section 1101(11) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 to carry out the program shall be available for obligation in the same manner as if the funds were apportioned under this chapter.

    ‘(i) INFORMATION EXCHANGE- No individual project the scope of work of which is limited to information exchange shall receive an allocation under the program in an amount that exceeds $500,000 for any fiscal year.

    ‘(j) PROJECTS IN CANADA OR MEXICO- A project in Canada or Mexico, proposed by a border State to directly and predominantly facilitate cross-border vehicle and commercial cargo movements at an international gateway or port of entry into the border region of the State, may be constructed using funds made available under the program if, before obligation of those funds, Canada or Mexico, or the political subdivision of Canada or Mexico that is responsible for the operation of the facility to be constructed, provides assurances satisfactory to the Secretary that any facility constructed under this subsection will be--

      ‘(1) constructed in accordance with standards equivalent to applicable standards in the United States; and

      ‘(2) properly maintained and used over the useful life of the facility for the purpose for which the Secretary allocated funds to the project.

    ‘(k) TRANSFER OF FUNDS TO THE GENERAL SERVICES ADMINISTRATION-

      ‘(1) STATE FUNDS- At the request of a border State, funds made available under the program may be transferred to the General Services Administration for the purpose of funding 1 or more specific projects if--

        ‘(A) the Secretary determines, after consultation with the State transportation department of the border State, that the General Services Administration should carry out the project; and

        ‘(B) the General Services Administration agrees to accept the transfer of, and to administer, those funds.

      ‘(2) NON-FEDERAL SHARE-

        ‘(A) IN GENERAL- A border State that makes a request under paragraph (1) shall provide directly to the General Services Administration, for each project covered by the request, the non-Federal share of the cost of each project described in subsection (f).

        ‘(B) NO AUGMENTATION OF APPROPRIATIONS- Funds provided by a border State under subparagraph (A)--

          ‘(i) shall not be considered to be an augmentation of the appropriations made available to the General Services Administration; and

          ‘(ii) shall be--

            ‘(I) administered in accordance with the procedures of the General Services Administration; but

            ‘(II) available for obligation in the same manner as if the funds were apportioned under this chapter.

        ‘(C) OBLIGATION AUTHORITY- Obligation authority shall be transferred to the General Services Administration in the same manner and amount as the funds provided for projects under subparagraph (A).

      ‘(3) DIRECT TRANSFER OF AUTHORIZED FUNDS-

        ‘(A) IN GENERAL- In addition to allocations to States and metropolitan planning organizations under subsection (c), the Secretary may transfer funds made available to carry out this section to the General Services Administration for construction of transportation infrastructure projects at or near the border in border States, if--

          ‘(i) the Secretary determines that the transfer is necessary to effectively carry out the purposes of this program; and

          ‘(ii) the General Services Administration agrees to accept the transfer of, and to administer, those funds.

        ‘(B) NO AUGMENTATION OF APPROPRIATIONS- Funds transferred by the Secretary under subparagraph (A)--

          ‘(i) shall not be considered to be an augmentation of the appropriations made available to the General Services Administration; and

          ‘(ii) shall be--

            ‘(I) administered in accordance with the procedures of the General Services Administration; but

            ‘(II) available for obligation in the same manner as if the funds were apportioned under this chapter.

        ‘(C) OBLIGATION AUTHORITY- Obligation authority shall be transferred to the General Services Administration in the same manner and amount as the funds transferred under subparagraph (A).’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1809(b)), is amended by adding at the end the following:

      ‘172. Border planning, operations, and technology program.’.

SEC. 1811. PUERTO RICO HIGHWAY PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1810(a)), is amended by adding at the end the following:

‘Sec. 173. Puerto Rico highway program

    ‘(a) IN GENERAL- The Secretary shall allocate funds authorized by section 1101(15) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 for each of fiscal years 2004 through 2009 to the Commonwealth of Puerto Rico to carry out a highway program in the Commonwealth.

    ‘(b) APPLICABILITY OF TITLE-

      ‘(1) IN GENERAL- Amounts made available by section 1101(15) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 shall be available for obligation in the same manner as if such funds were apportioned under this chapter.

      ‘(2) LIMITATION ON OBLIGATIONS- The amounts shall be subject to any limitation on obligations for Federal-aid highway and highway safety construction programs.

    ‘(c) TREATMENT OF FUNDS- Amounts made available to carry out this section for a fiscal year shall be administered as follows:

      ‘(1) APPORTIONMENT- 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, for each program funded under those sections in an amount determined by multiplying--

        ‘(A) the aggregate of the amounts for the fiscal year; by

        ‘(B) the ratio that--

          ‘(i) the amount of funds apportioned to Puerto Rico for each such program for fiscal year 1997; bears to

          ‘(ii) the total amount of funds apportioned to Puerto Rico for all such programs for fiscal year 1997.

      ‘(2) PENALTY- The amounts treated as being apportioned to Puerto Rico under each section referred to in paragraph (1) 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 and title 49.

      ‘(3) EFFECT ON ALLOCATIONS AND APPORTIONMENTS- Subject to paragraph (2), nothing in this section affects any allocation under section 105 and any apportionment under sections 104 and 144.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1810(b)), is amended by adding at the end the following:

      ‘173. Puerto Rico highway program.’.

SEC. 1812. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1811(a)), is amended by adding at the end the following:

‘Sec. 174. National historic covered bridge preservation

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

    ‘(b) HISTORIC COVERED BRIDGE PRESERVATION- Subject to the availability of appropriations, the Secretary shall--

      ‘(1) collect and disseminate information on historic covered bridges;

      ‘(2) conduct educational programs relating to the history and construction techniques of historic covered bridges;

      ‘(3) conduct research on the history of historic covered bridges; and

      ‘(4) conduct research on, and study techniques for, protecting historic covered bridges from rot, fire, natural disasters, or weight-related damage.

    ‘(c) GRANTS-

      ‘(1) IN GENERAL- Subject to the availability of appropriations, the Secretary shall make a grant to a State that submits an application to the Secretary that demonstrates a need for assistance in carrying out 1 or more historic covered bridge projects described in paragraph (2).

      ‘(2) ELIGIBLE PROJECTS- A grant under paragraph (1) may be made for a project--

        ‘(A) to rehabilitate or repair a historic covered bridge; or

        ‘(B) to preserve a historic covered bridge, including through--

          ‘(i) installation of a fire protection system, including a fireproofing or fire detection system and sprinklers;

          ‘(ii) installation of a system to prevent vandalism and arson; or

          ‘(iii) relocation of a bridge to a preservation site.

      ‘(3) AUTHENTICITY REQUIREMENTS- A grant under paragraph (1) may be made for a project only if--

        ‘(A) to the maximum extent practicable, the project--

          ‘(i) is carried out in the most historically appropriate manner; and

          ‘(ii) preserves the existing structure of the historic covered bridge; and

        ‘(B) the project provides for the replacement of wooden components with wooden components, unless the use of wood is impracticable for safety reasons.

      ‘(4) FEDERAL SHARE- Except as provided in section 120, the Federal share of the cost of a project carried out with a grant under this subsection shall be 80 percent.

    ‘(d) FUNDING- There is authorized to be appropriated to carry out this section $14,000,000 for each of fiscal years 2004 through 2009, to remain available until expended.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1811(b)), is amended by adding at the end the following:

      ‘174. National historic covered bridge preservation.’.

SEC. 1813. TRANSPORTATION AND COMMUNITY AND SYSTEM PRESERVATION PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1812(a)), is amended by adding at the end the following:

‘Sec. 175. Transportation and community and system preservation program

    ‘(a) ESTABLISHMENT- The Secretary shall establish a comprehensive program to facilitate the planning, development, and implementation of strategies by States, metropolitan planning organizations, federally-recognized Indian tribes, and local governments to integrate transportation, community, and system preservation plans and practices that address the goals described in subsection (b).

    ‘(b) GOALS- The goals of the program are to--

      ‘(1) improve the efficiency of the transportation system in the United States;

      ‘(2) reduce the impacts of transportation on the environment;

      ‘(3) reduce the need for costly future investments in public infrastructure;

      ‘(4) provide efficient access to jobs, services, and centers of trade; and

      ‘(5) examine development patterns, and to identify strategies, to encourage private sector development patterns that achieve the goals identified in paragraphs (1) through (4).

    ‘(c) ALLOCATION OF FUNDS FOR IMPLEMENTATION-

      ‘(1) IN GENERAL- The Secretary shall allocate funds made available to carry out this subsection to States, metropolitan planning organizations, and local governments to carry out projects to address transportation efficiency and community and system preservation.

      ‘(2) CRITERIA- In allocating funds made available to carry out this subsection, the Secretary shall give priority to applicants that--

        ‘(A) have instituted preservation or development plans and programs that--

          ‘(i) meet the requirements of this title and chapter 53 of title 49, United States Code; and

          ‘(ii)(I) are coordinated with State and local adopted preservation or development plans;

          ‘(II) are intended to promote cost-effective and strategic investments in transportation infrastructure that minimize adverse impacts on the environment; or

          ‘(III) are intended to promote innovative private sector strategies.

        ‘(B) have instituted other policies to integrate transportation and community and system preservation practices, such as--

          ‘(i) spending policies that direct funds to high-growth areas;

          ‘(ii) urban growth boundaries to guide metropolitan expansion;

          ‘(iii) ‘green corridors’ programs that provide access to major highway corridors for areas targeted for efficient and compact development; or

          ‘(iv) other similar programs or policies as determined by the Secretary;

        ‘(C) have preservation or development policies that include a mechanism for reducing potential impacts of transportation activities on the environment;

        ‘(D) examine ways to encourage private sector investments that address the purposes of this section; and

        ‘(E) propose projects for funding that address the purposes described in subsection (b)(2).

      ‘(3) EQUITABLE DISTRIBUTION- In allocating funds to carry out this subsection, the Secretary shall ensure the equitable distribution of funds to a diversity of populations and geographic regions.

      ‘(4) USE OF ALLOCATED FUNDS-

        ‘(A) IN GENERAL- An allocation of funds made available to carry out this subsection shall be used by the recipient to implement the projects proposed in the application to the Secretary.

        ‘(B) TYPES OF PROJECTS- The allocation of funds shall be available for obligation for--

          ‘(i) any project eligible for funding under this title or chapter 53 of title 49, United States Code; or

          ‘(ii) any other activity relating to transportation and community and system preservation that the Secretary determines to be appropriate, including corridor preservation activities that are necessary to implement--

            ‘(I) transit-oriented development plans;

            ‘(II) traffic calming measures; or

            ‘(III) other coordinated transportation and community and system preservation practices.

    ‘(d) FUNDING-

      ‘(1) IN GENERAL- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this section $50,000,000 for each of fiscal years 2004 through 2009.

      ‘(2) CONTRACT AUTHORITY- Funds authorized under this subsection shall be available for obligation in the same manner as if the funds were apportioned under this chapter.’.

    (b) ELIGIBLE PROJECTS- Section 133(b) of title 23, United States Code (as amended by section 1701(a)), is amended by adding at the end the following:

      ‘(18) Transportation and community system preservation to facilitate the planning, development, and implementation of strategies of metropolitan planning organizations and local governments to integrate transportation, community, and system preservation plans and practices that address the following:

        ‘(A) Improvement of the efficiency of the transportation system in the United States.

        ‘(B) Reduction of the impacts of transportation on the environment.

        ‘(C) Reduction of the need for costly future investments in public infrastructure.

        ‘(D) Provision of efficient access to jobs, services, and centers of trade.

        ‘(E) Examination of development patterns, and identification of strategies to encourage private sector development patterns, that achieve the goals identified in subparagraphs (A) through (D).

      ‘(19) Projects relating to intersections, including intersections--

        ‘(A) that--

          ‘(i) have disproportionately high accident rates;

          ‘(ii) have high levels of congestion, as evidenced by--

            ‘(I) interrupted traffic flow at the intersection; and

            ‘(II) a level of service rating, issued by the Transportation Research Board of the National Academy of Sciences in accordance with the Highway Capacity Manual, that is not better than ‘F’ during peak travel hours; and

          ‘(iii) are directly connected to or located on a Federal-aid highway; and

        ‘(B) improvements that are approved in the regional plan of the appropriate local metropolitan planning organization.’.

    (c) CONFORMING AMENDMENT- The analysis for subchapter I of chapter 1 of title 23, United States Code (as amended by section 1812(b)), is amended by adding at the end the following:

      ‘175. Transportation and community and system preservation pilot program.’.

SEC. 1814. PARKING PILOT PROGRAMS.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1813(a)), is amended by adding at the end the following:

‘Sec. 176. Parking pilot programs

    ‘(a) COMMERCIAL TRUCK PARKING PILOT PROGRAM-

      ‘(1) ESTABLISHMENT- In cooperation with appropriate State, regional, and local governments, the Secretary shall establish a pilot program to address the shortage of long-term parking for drivers of commercial motor vehicles on the National Highway System.

      ‘(2) ALLOCATION OF FUNDS-

        ‘(A) IN GENERAL- The Secretary shall allocate funds made available under this subsection to States, metropolitan planning organizations, and local governments.

        ‘(B) CRITERIA- In allocating funds under this subsection, the Secretary shall give priority to an applicant that--

          ‘(i) demonstrates a severe shortage of commercial vehicle parking capacity on the corridor to be addressed;

          ‘(ii) consults with affected State and local governments, community groups, private providers of commercial vehicle parking, and motorist and trucking organizations; and

          ‘(iii) demonstrates that the project proposed by the applicant is likely to have a positive effect on highway safety, traffic congestion, or air quality.

      ‘(3) USE OF ALLOCATED FUNDS-

        ‘(A) IN GENERAL- A recipient of funds allocated under this subsection shall use the funds to carry out the project proposed in the application submitted by the recipient to the Secretary.

        ‘(B) TYPES OF PROJECTS- Funds under this subsection shall be available for obligation for projects that serve the National Highway System, including--

          ‘(i) construction of safety rest areas that include parking for commercial motor vehicles;

          ‘(ii) construction of commercial motor vehicle parking facilities that are adjacent to commercial truck stops and travel plazas;

          ‘(iii) costs associated with the opening of facilities (including inspection and weigh stations and park-and-ride facilities) to provide commercial motor vehicle parking;

          ‘(iv) projects that promote awareness of the availability of public or private commercial motor vehicle parking on the National Highway System, including parking in connection with intelligent transportation systems and other systems;

          ‘(v) construction of turnouts along the National Highway System for commercial motor vehicles;

          ‘(vi) capital improvements to public commercial motor vehicle truck parking facilities closed on a seasonal basis in order to allow the facilities to remain open year-around; and

          ‘(vii) improvements to the geometric design at interchanges on the National Highway System to improve access to commercial motor vehicle parking facilities.

      ‘(4) REPORT- Not later than 5 years after the date of enactment of this section, the Secretary shall submit to Congress a report on the results of the pilot program carried out under this subsection.

      ‘(5) FEDERAL SHARE- The Federal share of the cost of a project carried out under this subsection shall be consistent with section 120.

      ‘(6) FUNDING-

        ‘(A) IN GENERAL- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this subsection $10,000,000 for each of fiscal years 2005 through 2009.

        ‘(B) CONTRACT AUTHORITY- Funds authorized under this paragraph shall be available for obligation in the same manner as if the funds were apportioned under this chapter.

    ‘(b) CORRIDOR AND FRINGE PARKING PILOT PROGRAM-

      ‘(1) ESTABLISHMENT-

        ‘(A) IN GENERAL- In cooperation with appropriate State, regional, and local governments, the Secretary shall carry out a pilot program to provide corridor and fringe parking facilities.

        ‘(B) PRIMARY FUNCTION- The primary function of a corridor and fringe parking facility funded under this subsection shall be to provide parking capacity to support car pooling, van pooling, ride sharing, commuting, and high occupancy vehicle travel.

        ‘(C) OVERNIGHT PARKING- A State may permit a facility described in subparagraph (B) to be used for the overnight parking of commercial vehicles if the use does not foreclose or unduly limit the primary function of the facility described in subparagraph (B).

      ‘(2) ALLOCATION OF FUNDS-

        ‘(A) IN GENERAL- The Secretary shall allocate funds made available to carry out this subsection to States.

        ‘(B) CRITERIA- In allocating funds under this subsection, the Secretary shall give priority to a State that--

          ‘(i) demonstrates demand for corridor and fringe parking on the corridor to be addressed;

          ‘(ii) consults with affected metropolitan planning organizations, local governments, community groups, and providers of corridor and fringe parking; and

          ‘(iii) demonstrates that the project proposed by the State is likely to have a positive effect on ride sharing, traffic congestion, or air quality.

      ‘(3) USE OF ALLOCATED FUNDS-

        ‘(A) IN GENERAL- A recipient of funds allocated under this subsection shall use the funds to carry out the project proposed in the application submitted by the recipient to the Secretary.

        ‘(B) TYPES OF PROJECTS- Funds under this subsection shall be available for obligation for projects that serve the Federal-aid system, including--

          ‘(i) construction of corridor and fringe parking facilities;

          ‘(ii) costs associated with the opening of facilities;

          ‘(iii) projects that promote awareness of the availability of corridor and fringe parking through the use of signage and other means;

          ‘(iv) capital improvements to corridor and fringe parking facilities closed on a seasonal basis in order to allow the facilities to remain open year-around; and

          ‘(v) improvements to the geometric design on adjoining roadways to facilitate access to, and egress from, corridor and fringe parking facilities.

      ‘(4) REPORT- Not later than 5 years after the date of enactment of this section, the Secretary shall submit to Congress a report on the results of the pilot program carried out under this subsection.

      ‘(5) FEDERAL SHARE- The Federal share of the cost of a project carried out under this subsection shall be consistent with section 120.

      ‘(6) FUNDING-

        ‘(A) IN GENERAL- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this subsection $10,000,000 for each of fiscal years 2005 through 2009.

        ‘(B) CONTRACT AUTHORITY- Funds authorized under this paragraph shall be available for obligation in the same manner as if the funds were apportioned under this chapter.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter I of title 23, United States Code (as amended by section 1813(c)), is amended by adding at the end the following:

      ‘176. Parking pilot programs.’.

SEC. 1815. INTERSTATE OASIS PROGRAM.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1814(a)), is amended by adding at the end the following:

‘Sec. 177. Interstate oasis program

    ‘(a) IN GENERAL- Not later than 180 days after the date of enactment of this section, in consultation with the States and other interested parties, the Secretary shall--

      ‘(1) establish an Interstate oasis program; and

      ‘(2) develop standards for designating, as an Interstate oasis, a facility that--

        ‘(A) offers--

          ‘(i) products and services to the public;

          ‘(ii) 24-hour access to restrooms; and

          ‘(iii) parking for automobiles and heavy trucks; and

        ‘(B) meets other standards established by the Secretary.

    ‘(b) STANDARDS FOR DESIGNATION- The standards for designation under subsection (a) shall include standards relating to--

      ‘(1) the appearance of a facility; and

      ‘(2) the proximity of the facility to the Interstate System.

    ‘(c) ELIGIBILITY FOR DESIGNATION- If a State elects to participate in the interstate oasis program, any facility meeting the standards established by the Secretary shall be eligible for designation under this section.

    ‘(d) LOGO- The Secretary shall design a logo to be displayed by a facility designated under this section.’.

    (b) CONFORMING AMENDMENT- The analysis for subchapter I of chapter I of title 23, United States Code (as amended by section 1814(b)), is amended by adding at the end the following:

      ‘177. Interstate oasis program.’.

SEC. 1816. TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS.

    Section 204 of title 23, United States Code (as amended by section 1806(f)(4)), is amended by adding at the end the following:

    ‘(n) TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS-

      ‘(1) IN GENERAL- Notwithstanding any other provision of law, regulation, policy, or guideline, an Indian tribe and a State may enter into a road maintenance agreement under which an Indian tribe assumes the responsibilities of the State for--

        ‘(A) Indian reservation roads; and

        ‘(B) roads providing access to Indian reservation roads.

      ‘(2) TRIBAL-STATE AGREEMENTS- Agreements entered into under paragraph (1)--

        ‘(A) shall be negotiated between the State and the Indian tribe; and

        ‘(B) shall not require the approval of the Secretary.

      ‘(3) ANNUAL REPORT- Effective beginning with fiscal year 2004, the Secretary shall prepare and submit to Congress an annual report that identifies--

        ‘(A) the Indian tribes and States that have entered into agreements under paragraph (1);

        ‘(B) the number of miles of roads for which Indian tribes have assumed maintenance responsibilities; and

        ‘(C) the amount of funding transferred to Indian tribes for the fiscal year under agreements entered into under paragraph (1).’.

SEC. 1817. NATIONAL FOREST SYSTEM ROADS.

    Section 205 of title 23, United States Code, is amended by adding at the end the following:

    ‘(e) Of the amounts made available for National Forest System roads, $15,000,000 for each fiscal year shall be used by the Secretary of Agriculture to pay the costs of facilitating the passage of aquatic species beneath roads in the National Forest System, including the costs of constructing, maintaining, replacing, or removing culverts and bridges, as appropriate.’.

SEC. 1818. TERRITORIAL HIGHWAY PROGRAM.

    (a) IN GENERAL- Chapter 2 of title 23, United States Code, is amended by striking section 215 and inserting the following:

‘Sec. 215. Territorial highway program

    ‘(a) DEFINITIONS- In this section:

      ‘(1) PROGRAM- The term ‘program’ means the territorial highway program established under subsection (b).

      ‘(2) TERRITORY- The term ‘territory’ means the 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.

    ‘(b) PROGRAM-

      ‘(1) 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 territorial government in the construction and improvement of a system of arterial and collector highways, and necessary inter-island connectors, that is--

        ‘(A) designated by the Governor or chief executive officer of each territory; and

        ‘(B) approved by the Secretary.

      ‘(2) FEDERAL SHARE- The Secretary shall provide Federal financial assistance to territories under this section in accordance with section 120(h).

    ‘(c) TECHNICAL ASSISTANCE-

      ‘(1) 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 to, on a continuing basis--

        ‘(A) engage in highway planning;

        ‘(B) conduct environmental evaluations;

        ‘(C) administer right-of-way acquisition and relocation assistance programs; and

        ‘(D) design, construct, operate, and maintain a system of arterial and collector highways, including necessary inter-island connectors.

      ‘(2) FORM AND TERMS OF ASSISTANCE- Technical assistance provided under paragraph (1), and the terms for the sharing of information among territories receiving the technical assistance, shall be included in the agreement required by subsection (e).

    ‘(d) NONAPPLICABILITY OF CERTAIN PROVISIONS-

      ‘(1) IN GENERAL- Except to the extent that provisions of chapter 1 are determined by the Secretary to be inconsistent with the needs of the territories and the intent of the program, chapter 1 (other than provisions of chapter 1 relating to the apportionment and allocation of funds) shall apply to funds authorized to be appropriated for the program.

      ‘(2) APPLICABLE PROVISIONS- The specific sections of chapter 1 that are applicable to each territory, and the extent of the applicability of those section, shall be identified in the agreement required by subsection (e).

    ‘(e) AGREEMENT-

      ‘(1) IN GENERAL- Except as provided in paragraph (3), none of the funds made available for the program shall be available for obligation or expenditure with respect to any territory until the Governor or chief executive officer of the territory enters into a new agreement with the Secretary (which new agreement shall be entered into not later than 1 year after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004), providing that the government of the territory shall--

        ‘(A) implement the program in accordance with applicable provisions of chapter 1 and subsection (d);

        ‘(B) 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;

        ‘(C) provide for the maintenance of facilities constructed or operated under this section in a condition to adequately serve the needs of present and future traffic; and

        ‘(D) implement standards for traffic operations and uniform traffic control devices that are approved by the Secretary.

      ‘(2) TECHNICAL ASSISTANCE- The new agreement required by paragraph (1) shall--

        ‘(A) specify the kind of technical assistance to be provided under the program;

        ‘(B) include appropriate provisions regarding information sharing among the territories; and

        ‘(C) delineate the oversight role and responsibilities of the territories and the Secretary.

      ‘(3) REVIEW AND REVISION OF AGREEMENT- The new agreement entered into under paragraph (1) shall be reevaluated and, as necessary, revised, at least every 2 years.

      ‘(4) EXISTING AGREEMENTS- With respect to an agreement between the Secretary and the Governor or chief executive officer of a territory that is in effect as of the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004--

        ‘(A) the agreement shall continue in force until replaced by a new agreement in accordance with paragraph (1); and

        ‘(B) amounts made available for the program under the agreement shall be available for obligation or expenditure so long as the agreement, or a new agreement under paragraph (1), is in effect.

    ‘(f) PERMISSIBLE USES OF FUNDS-

      ‘(1) IN GENERAL- Funds made available for the program may be used only for the following projects and activities carried out in a territory:

        ‘(A) Eligible surface transportation program projects described in section 133(b).

        ‘(B) Cost-effective, preventive maintenance consistent with section 116.

        ‘(C) Ferry boats, terminal facilities, and approaches, in accordance with subsections (b) and (c) of section 129.

        ‘(D) Engineering and economic surveys and investigations for the planning, and the financing, of future highway programs.

        ‘(E) Studies of the economy, safety, and convenience of highway use.

        ‘(F) The regulation and equitable taxation of highway use.

        ‘(G) Such research and development as are necessary in connection with the planning, design, and maintenance of the highway system.

      ‘(2) PROHIBITION ON USE OF FUNDS FOR ROUTINE MAINTENANCE- None of the funds made available for the program shall be obligated or expended for routine maintenance.

    ‘(g) LOCATION OF PROJECTS- Territorial highway projects (other than those described in paragraphs (1), (3), and (4) of section 133(b)) may not be undertaken on roads functionally classified as local.’.

    (b) CONFORMING AMENDMENTS-

      (1) ELIGIBLE PROJECTS- Section 103(b)(6) of title 23, United States Code, is amended by striking subparagraph (P) and inserting the following:

      ‘(P) Projects eligible for assistance under the territorial highway program under section 215.’.

      (2) FUNDING- Section 104(b)(1)(A) of title 23, United States Code, is amended by striking ‘to the Virgin Islands, Guam, American Samoa, and the Commonwealth of Northern Mariana Islands’ and inserting ‘for the territorial highway program authorized under section 215’.

      (3) ANALYSIS- The analysis for chapter 2 of title 23, United States Code, is amended by striking the item relating to section 215 and inserting the following:

      ‘215. Territorial highway program.’.

SEC. 1819. MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY DEPLOYMENT PROGRAM.

    Section 322 of title 23, United States Code, is amended--

      (1) in subsection (c)--

        (A) by striking ‘Not later than’ and inserting the following:

      ‘(1) INITIAL SOLICITATION- Not later than’; and

        (B) by adding at the end the following:

      ‘(2) ADDITIONAL SOLICITATION- Not later than 1 year after the date of enactment of this paragraph, the Secretary may solicit additional applications from States, or authorities designated by 1 or more States, for financial assistance authorized by subsection (b) for planning, design, and construction of eligible MAGLEV projects.’;

      (2) in subsection (e), by striking ‘Prior to soliciting applications, the Secretary’ and inserting ‘The Secretary’;

      (3) in subsection (h)--

        (A) in subparagraph (A), by striking clause (i) and inserting the following:

          ‘(i) IN GENERAL- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this section $15,000,000 for each of fiscal years 2004 through 2009.’; and

        (B) in subparagraph (B), by striking clause (i) and inserting the following:

          ‘(i) IN GENERAL- There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this section--

            ‘(I) $375,000,000 for fiscal year 2004;

            ‘(II) $400,000,000 for fiscal year 2005;

            ‘(III) $415,000,000 for fiscal year 2006;

            ‘(IV) $425,000,000 for fiscal year 2007;

            ‘(V) $435,000,000 for fiscal year 2008; and

            ‘(VI) $450,000,000 for fiscal year 2009.’; and

      (4) by striking subsection (i).

SEC. 1820. DONATIONS AND CREDITS.

    Section 323 of title 23, United States Code, is amended--

      (1) in the first sentence of subsection (c), by inserting ‘, or a local government from offering to donate funds, materials, or services performed by local government employees,’ after ‘services’; and

      (2) striking subsection (e).

SEC. 1821. DISADVANTAGED BUSINESS ENTERPRISES.

    (a) GENERAL RULE- Except to the extent that the Secretary determines otherwise, not less than 10 percent of the amounts made available for any program under titles I, II, and III of this Act shall be expended with small business concerns owned and controlled by socially and economically disadvantaged individuals.

    (b) DEFINITIONS- In this section:

      (1) SMALL BUSINESS CONCERN-

        (A) IN GENERAL- The term ‘small business concern’ has the meaning given the term under section 3 of the Small Business Act (15 U.S.C. 632).

        (B) EXCLUSION- 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 has average annual gross receipts over the preceding 3 fiscal years in excess of $17,420,000, as adjusted by the Secretary for inflation.

      (2) SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS- The term ‘socially and economically disadvantaged individuals’ has the meaning given the term under section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and relevant subcontracting regulations promulgated under that section, except that women shall be presumed to be socially and economically disadvantaged individuals for the purposes of this section.

    (c) ANNUAL LISTING OF DISADVANTAGED BUSINESS ENTERPRISES- Each State shall annually survey and compile a list of the small business concerns referred to in subsection (a) and the location of such concerns in the State and notify the Secretary, in writing, of the percentage of such concerns which are controlled by women, by socially and economically disadvantaged individuals (other than women), and by individuals who are women and are otherwise socially and economically disadvantaged individuals.

    (d) UNIFORM CERTIFICATION- The Secretary shall establish minimum uniform criteria for State governments to use in certifying whether a concern qualifies for purposes of this section. Such minimum uniform criteria shall include on-site visits, personal interviews, licenses, analysis of stock ownership, listing of equipment, analysis of bonding capacity, listing of work completed, resume of principal owners, financial capacity, and type of work preferred.

    (e) COMPLIANCE WITH COURT ORDERS- Nothing in this section limits the eligibility of an entity or person to receive funds made available under titles I, III, and V of this Act, if the entity or person is prevented, in whole or in part, from complying with subsection (a) because a Federal court issues a final order in which the court finds that the requirement of subsection (a), or the program established under subsection (a), is unconstitutional.

SEC. 1822. EMERGENCY RELIEF.

    Section 125(c)(1) of title 23, United States Code, is amended by striking $100,000,000’ and inserting ‘$300,000,000’.

SEC. 1823. PRIORITY FOR PEDESTRIAN AND BICYCLE FACILITY ENHANCEMENT PROJECTS.

    Section 133(e)(5) of title 23, United States Code, is amended by adding at the end the following:

        ‘(D) PRIORITY FOR PEDESTRIAN AND BICYCLE FACILITY ENHANCEMENT PROJECTS- The Secretary shall encourage States to give priority to pedestrian and bicycle facility enhancement projects that include a coordinated physical activity or healthy lifestyles program.’.

SEC. 1824. THE DELTA REGIONAL AUTHORITY.

    (a) IN GENERAL- Subchapter I of chapter 1 of title 23, United States Code (as amended by section 1814(a)), is amended by adding at the end the following:

‘Sec. 178. Delta Region transportation development program

    ‘(a) IN GENERAL- The Secretary shall carry out a program to--

      ‘(1) support and encourage multistate transportation planning and corridor development;

      ‘(2) provide for transportation project development;

      ‘(3) facilitate transportation decisionmaking; and

      ‘(4) support transportation construction.

    ‘(b) ELIGIBLE RECIPIENTS- A State transportation department or metropolitan planning organization may receive and administer funds provided under the program.

    ‘(c) ELIGIBLE ACTIVITIES- The Secretary shall make allocations under the program for multistate highway and transit planning, development, and construction projects.

    ‘(d) OTHER PROVISIONS REGARDING ELIGIBILITY- All activities funded under this program shall be consistent with the continuing, cooperative, and comprehensive planning processes required by section 134 and 135.

    ‘(e) SELECTION CRITERIA- The Secretary shall select projects to be carried out under the program based on--

      ‘(1) whether the project is located--

        ‘(A) in an area that is part of the Delta Regional Authority; and

        ‘(B) on the Federal-aid system;

      ‘(2) endorsement of the project by the State department of transportation; and

      ‘(3) evidence of the ability to complete the project.

    ‘(f) PROGRAM PRIORITIES- In administering the program, the Secretary shall--

      ‘(1) encourage State and local officials to work together to develop plans for multimodal and multijurisdictional transportation decisionmaking; and

      ‘(2) give priority to projects that emphasize multimodal planning, including planning for operational improvements that--

        ‘(A) increase the mobility of people and goods;

        ‘(B) improve the safety of the transportation system with respect to catastrophic--

          ‘(i) natural disasters; or

          ‘(ii) disasters caused by human activity; and

        ‘(C) contribute to the economic vitality of the area in which the project is being carried out.

    ‘(g) FEDERAL SHARE- Amounts provided by the Delta Regional Authority to carry out a project under this section shall be applied to the non-Federal share required by section 120.

    ‘(h) AVAILABILITY OF FUNDS- Amounts made available to carry out this section shall remain available until expended.’.

    (b) CONFORMING AMENDMENT- The analysis for chapter 1 of title 23, United States Code (as amended by section 1814(b)), is amended by adding at the end the following:

      ‘178. Delta Region transportation development program.’.

SEC. 1825. MULTISTATE INTERNATIONAL CORRIDOR DEVELOPMENT PROGRAM.

    (a) ESTABLISHMENT- The Secretary shall establish a program to develop international trade corridors to facilitate the movement of freight from international ports of entry and inland ports through and to the interior of the United States.

    (b) ELIGIBLE RECIPIENTS- State transportation departments and metropolitan planning organizations shall be eligible to receive and administer funds provided under the program.

    (c) ELIGIBLE ACTIVITIES- The Secretary shall make allocations under this program for any activity eligible for funding under title 23, United States Code, including multistate highway and multistate multimodal planning and project construction.

    (d) OTHER PROVISIONS REGARDING ELIGIBILITY- All activities funded under this program shall be consistent with the continuing, cooperative, and comprehensive planning processes required by sections 134 and 135 of title 23, United States Code.

    (e) SELECTION CRITERIA- The Secretary shall only select projects for corridors--

      (1) that have significant levels or increases in truck and traffic volume relating to international freight movement;

      (2) connect to at least 1 international terminus or inland port;

      (3) traverse at least 3 States; and

      (4) are identified by section 115(c) of the Intermodal Transportation Efficiency Act of 1991 (Public Law 102-240; 105 Stat. 2032).

    (f) PROGRAM PRIORITIES- In administering the program, the Secretary shall--

      (1) encourage and enable States and other jurisdictions to work together to develop plans for multimodal and multijurisdictional transportation decisionmaking; and

      (2) give priority to studies that emphasize multimodal planning, including planning for operational improvements that increase mobility, freight productivity, access to marine ports, safety, and security while enhancing the environment.

    (g) FEDERAL SHARE- The Federal share required for any study carried out under this section shall be available for obligation in the same manner as if the funds were apportioned under chapter I of title 23, United States Code.

SEC. 1826. AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES WITH INDIAN RESERVATIONS.

    Section 1214(d) of the Transportation Equity Act for the 21st Century (23 U.S.C. 202 note; 112 Stat. 206) is amended--

      (1) in paragraph (1), by inserting ‘(except Arizona)’ after ‘each State’; and

      (2) in paragraph (5)(A), by striking ‘$1,500,000 for each of fiscal years 1998 through 2003’ and inserting ‘$1,800,000 for each of fiscal years 2004 through 2009’.

Subtitle I--Technical Corrections

SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT.

    (a) LETTING OF CONTRACTS- Section 112 of title 23, United States Code, is amended--

      (1) by striking subsection (f); and

      (2) by redesignating subsection (g) as subsection (f).

    (b) FRINGE AND CORRIDOR PARKING FACILITIES- Section 137(a) of title 23, United States Code, is amended in the first sentence by striking ‘on the Federal-aid urban system’ and inserting ‘on a Federal-aid highway’.

SEC. 1902. CLARIFICATION OF DATE.

    Section 109(g) of title 23, United States Code, is amended in the first sentence by striking ‘The Secretary’ and all that follows through ‘of 1970’ and inserting ‘Not later than January 30, 1971, the Secretary shall issue’.

SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING FUNDING SOURCES IN TITLE 23.

    (a) IN GENERAL- Section 154 of the Federal-Aid Highway Act of 1987 (23 U.S.C. 101 note; 101 Stat. 209) is--

      (1) transferred to title 23, United States Code;

      (2) redesignated as section 321;

      (3) moved to appear after section 320 of that title; and

      (4) amended by striking the section heading and inserting the following:

‘Sec. 321. Signs identifying funding sources’.

    (b) CONFORMING AMENDMENT- The analysis for chapter 3 of title 23, United States Code, is amended by inserting after the item relating to section 320 the following:

      ‘321. Signs identifying funding sources.’.

SEC. 1904. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23.

    (a) IN GENERAL- Section 165 of the Highway Improvement Act of 1982 (23 U.S.C. 101 note; 96 Stat. 2136) is--

      (1) transferred to title 23, United States Code;

      (2) redesignated as section 313;

      (3) moved to appear after section 312 of that title; and

      (4) amended by striking the section heading and inserting the following:

‘Sec. 313. Buy America’.

    (b) CONFORMING AMENDMENTS-

      (1) The analysis for chapter 3 of title 23, United States Code, is amended by inserting after the item relating to section 312 the following:

      ‘313. Buy America.’.

      (2) Section 313 of title 23, United States Code (as added by subsection (a)), is amended--

        (A) in subsection (a), by striking ‘by this Act’ the first place it appears and all that follows through ‘of 1978’ and inserting ‘to carry out the Surface Transportation Assistance Act of 1982 (96 Stat. 2097) or this title’;

        (B) in subsection (b), by redesignating paragraph (4) as paragraph (3);

        (C) in subsection (d), by striking ‘this Act,’ and all that follows through ‘Code, which’ and inserting ‘the Surface Transportation Assistance Act of 1982 (96 Stat. 2097) or this title that’;

        (D) by striking subsection (e); and

        (E) by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

SEC. 1905. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION.

    Section 140 of title 23, United States Code, is amended--

      (1) in subsection (a)--

        (A) in the first sentence, by striking ‘subsection (a) of section 105 of this title’ and inserting ‘section 135’;

        (B) in the second sentence, by striking ‘He’ and inserting ‘The Secretary’;

        (C) in the third sentence, by striking ‘where he considers it necessary to assure’ and inserting ‘if necessary to ensure’; and

        (D) in the last sentence--

          (i) by striking ‘him’ and inserting ‘the Secretary’ and

          (ii) by striking ‘he’ and inserting ‘the Secretary’;

      (2) in subsection (b)--

        (A) in the first sentence, by striking ‘highway construction’ and inserting ‘surface transportation’; and

        (B) in the second sentence--

          (i) by striking ‘as he may deem necessary’ and inserting ‘as necessary’; and

          (ii) by striking ‘not to exceed $2,500,000 for the transition quarter ending September 30, 1976, and’;

      (3) in the second sentence of subsection (c)--

        (A) by striking ‘subsection 104(b)(3) of this title’ and inserting ‘section 104(b)(3)’; and

        (B) by striking ‘he may deem’; and

      (4) in the heading of subsection (d), by striking ‘AND CONTRACTING’.

TITLE II--TRANSPORTATION RESEARCH

Subtitle A--Funding

SEC. 2001. 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) SURFACE TRANSPORTATION RESEARCH-

        (A) IN GENERAL- For carrying out sections 502, 503, 506, 507, 508, and 511 of title 23, United States Code--

          (i) $211,000,000 for each of fiscal years 2004 and 2005;

          (ii) $215,000,000 for fiscal year 2006;

          (iii) $218,000,000 for fiscal year 2007;

          (iv) $220,000,000 for fiscal year 2008; and

          (v) $223,000,000 for fiscal year 2009.

        (B) SURFACE TRANSPORTATION-ENVIRONMENTAL COOPERATIVE RESEARCH PROGRAM- For each of fiscal years 2004 through 2009, the Secretary shall set aside $20,000,000 of the funds authorized under subparagraph (A) to carry out the surface transportation-environmental cooperative research program under section 507 of title 23, United States Code.

      (2) TRAINING AND EDUCATION- For carrying out section 504 of title 23, United States Code--

        (A) $27,000,000 for fiscal year 2004;

        (B) $28,000,000 for fiscal year 2005;

        (C) $29,000,000 for fiscal year 2006;

        (D) $30,000,000 for fiscal year 2007;

        (E) $31,000,000 for fiscal year 2008; and

        (F) $32,000,000 for fiscal year 2009.

      (3) BUREAU OF TRANSPORTATION STATISTICS- For the Bureau of Transportation Statistics to carry out section 111 of title 49, United States Code, $28,000,000 for each of fiscal years 2004 through 2009.

      (4) ITS STANDARDS, RESEARCH, OPERATIONAL TESTS, AND DEVELOPMENT- For carrying out sections 524, 525, 526, 527, 528, and 529 of title 23, United States Code--

        (A) $120,000,000 for fiscal year 2004;

        (B) $123,000,000 for fiscal year 2005;

        (C) $126,000,000 for fiscal year 2006;

        (D) $129,000,000 for fiscal year 2007;

        (E) $132,000,000 for fiscal year 2008; and

        (F) $135,000,000 for fiscal year 2009.

      (5) UNIVERSITY TRANSPORTATION CENTERS- For carrying out section 510 of title 23, United States Code--

        (A) $40,000,000 for fiscal year 2004; and

        (B) $45,000,000 for each of fiscal years 2005 through 2009.

    (b) APPLICABILITY OF TITLE 23, UNITED STATES CODE- Funds authorized to be appropriated by subsection (a)--

      (1) shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, except that the Federal share of the cost of a project or activity carried out using the funds shall be the share applicable under section 120(b) of title 23, United States Code, as adjusted under subsection (d) of that section (unless otherwise specified or otherwise determined by the Secretary); and

      (2) shall remain available until expended.

    (c) ALLOCATIONS-

      (1) SURFACE TRANSPORTATION RESEARCH- Of the amounts made available under subsection (a)(1)--

        (A) $27,000,000 for each of fiscal years 2004 through 2009 shall be available to carry out advanced, high-risk, long-term research under section 502(d) of title 23, United States Code;

        (B) $18,000,000 for fiscal years 2004 and 2005, $17,000,000 for fiscal year 2006, $15,000,000 for fiscal year 2007, $12,000,000 for fiscal year 2008, and $10,00,000 for fiscal year 2009 shall be available to carry out the long-term pavement performance program under section 502(e) of that title;

        (C) $6,000,000 for each of fiscal years 2004 through 2009 shall be available to carry out the high-performance concrete bridge research and technology transfer program under section 502(i) of that title;

        (D) $6,000,000 for each of fiscal years 2004 through 2009 shall be made available to carry out research on asphalt used in highway pavements;

        (E) $6,000,000 for each of fiscal years 2004 through 2009 shall be made available to carry out research on concrete pavements;

        (F) $3,000,000 for each of fiscal years 2004 through 2009 shall be made available to carry out research on aggregates used in highway pavements;

        (G) $4,750,000 for each of fiscal years 2004 through 2009 shall be made available for further development and deployment of techniques to prevent and mitigate alkali silica reactivity;

        (H) $2,000,000 for fiscal year 2005 shall be remain available until expended for asphalt and asphalt-related reclamation research at the South Dakota School of Mines; and

        (I) $3,000,000 for each of fiscal years 2004 through 2009 shall be made available to carry out section 502(f)(3) of title 23, United States Code.

      (2) TECHNOLOGY APPLICATION PROGRAM- Of the amounts made available under subsection (a)(1), $60,000,000 for each of fiscal years 2004 through 2009 shall be available to carry out section 503 of title 23, United States Code.

      (3) TRAINING AND EDUCATION- Of the amounts made available under subsection (a)(2)--

        (A) $12,000,000 for fiscal year 2004, $12,500,000 for fiscal year 2005, $13,000,000 for fiscal year 2006, $13,500,000 for fiscal year 2007, $14,000,000 for fiscal year 2008, and $14,500,000 for fiscal year 2009 shall be available to carry out section 504(a) of title 23, United States Code (relating to the National Highway Institute);

        (B) $15,000,000 for each of fiscal years 2004 through 2009 shall be available to carry out section 504(b) of that title (relating to local technical assistance); and

        (C) $3,000,000 for each of fiscal years 2004 through 2009 shall be available to carry out section 504(c)(2) of that title (relating to the Eisenhower Transportation Fellowship Program).

      (4) INTERNATIONAL HIGHWAY TRANSPORTATION OUTREACH PROGRAM- Of the amounts made available under subsection (a)(1), $500,000 for each of fiscal years 2004 through 2009 shall be available to carry out section 506 of title 23, United States Code.

      (5) NEW STRATEGIC HIGHWAY RESEARCH PROGRAM- For each of fiscal years 2004 through 2009, to carry out section 509 of title 23, United States Code, the Secretary shall set aside--

        (A) $15,000,000 of the amounts made available to carry out the interstate maintenance program under section 119 of title 23, United States Code, for the fiscal year;

        (B) $19,000,000 of the amounts made available for the National Highway System under section 101 of title 23, United States Code, for the fiscal year;

        (C) $13,000,000 of the amounts made available to carry out the bridge program under section 144 of title 23, United States Code, for the fiscal year;

        (D) $20,000,000 of the amounts made available to carry out the surface transportation program under section 133 of title 23, United States Code, for the fiscal year;

        (E) $5,000,000 of the amounts made available to carry out the congestion mitigation and air quality improvement program under section 149 of title 23, United States Code, for the fiscal year; and

        (F) $3,000,000 of the amounts made available to carry out the highway safety improvement program under section 148 of title 23, United States Code, for the fiscal year.

      (6) COMMERCIAL VEHICLE INTELLIGENT TRANSPORTATION SYSTEM INFRASTRUCTURE PROGRAM- Of the amounts made available under subsection (a)(4), not less than $30,000,000 for each of fiscal years 2004 through 2009 shall be available to carry out section 527 of title 23, United States Code.

    (d) TRANSFERS OF FUNDS- The Secretary may transfer--

      (1) to an amount made available under paragraphs (1), (2), or (4) of subsection (c), not to exceed 10 percent of the amount allocated for a fiscal year under any other of those paragraphs; and

      (2) to an amount made available under subparagraphs (A), (B), or (C) of subsection (c)(3), not to exceed 10 percent of the amount allocated for a fiscal year under any other of those subparagraphs.

SEC. 2002. OBLIGATION CEILING.

    Notwithstanding any other provision of law, the total of all obligations from amounts made available from the Highway Trust Fund (other than the Mass Transit Account) by section 2001(a) shall not exceed--

      (1) $426,200,000 for fiscal year 2004;

      (2) $435,200,000 for fiscal year 2005;

      (3) $443,200,000 for fiscal year 2006;

      (4) $450,200,000 for fiscal year 2007;

      (5) $456,200,000 for fiscal year 2008; and

      (6) $463,200,000 for fiscal year 2009.

SEC. 2003. NOTICE.

    (a) NOTICE OF REPROGRAMMING- If any funds authorized for carrying out this title or the amendments made by this title are subject to a reprogramming action that requires notice to be provided to the Committee on Appropriations of the House of Representatives and the Committee on Appropriations of the Senate, notice of that action shall be concurrently provided to the Committee on Transportation and Infrastructure and the Committee on Science of the House of Representatives and the Committee on Environment and Public Works of the Senate.

    (b) NOTICE OF REORGANIZATION- On or before the 15th day preceding the date of any major reorganization of a program, project, or activity of the Department of Transportation for which funds are authorized by this title or the amendments made by this title, the Secretary shall provide notice of the reorganization to the Committee on Transportation and Infrastructure and the Committee on Science of the House of Representatives and the Committee on Environment and Public Works of the Senate.

Subtitle B--Research and Technology

SEC. 2101. RESEARCH AND TECHNOLOGY PROGRAM.

    (a) IN GENERAL- Chapter 5 of title 23, United States Code, is amended to read as follows:

‘CHAPTER 5--RESEARCH AND TECHNOLOGY

‘SUBCHAPTER I--SURFACE TRANSPORTATION

      ‘Sec.

      ‘501. Definitions.

      ‘502. Surface transportation research.

      ‘503. Technology application program.

      ‘504. Training and education.

      ‘505. State planning and research.

      ‘506. International highway transportation outreach program.

      ‘507. Surface transportation-environmental cooperative research program.

      ‘508. Surface transportation research technology deployment and strategic planning.

      ‘509. New strategic highway research program.

      ‘510. University transportation centers.

      ‘511. Multistate corridor operations and management.

      ‘512. Transportation analysis simulation system.

‘SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND TECHNICAL ASSISTANCE PROGRAM

      ‘521. Finding.

      ‘522. Goals and purposes.

      ‘523. Definitions.

      ‘524. General authorities and requirements.

      ‘525. National ITS Program Plan.

      ‘526. National ITS architecture and standards.

      ‘527. Commercial vehicle intelligent transportation system infrastructure program.

      ‘528. Research and development.

      ‘529. Use of funds.

‘SUBCHAPTER I--SURFACE TRANSPORTATION

‘Sec. 501. Definitions

    ‘In this subchapter:

      ‘(1) FEDERAL LABORATORY- The term ‘Federal laboratory’ includes--

        ‘(A) a Government-owned, Government-operated laboratory; and

        ‘(B) a Government-owned, contractor-operated laboratory.

      ‘(2) SAFETY- The term ‘safety’ includes highway and traffic safety systems, research, and development relating to--

        ‘(A) vehicle, highway, driver, passenger, bicyclist, and pedestrian characteristics;

        ‘(B) accident investigations;

        ‘(C) integrated, interoperable emergency communications;

        ‘(D) emergency medical care; and

        ‘(E) transportation of the injured.

‘Sec. 502. Surface transportation research

    ‘(a) IN GENERAL-

      ‘(1) RESEARCH, DEVELOPMENT, AND TECHNOLOGY TRANSFER ACTIVITIES- The Secretary may carry out research, development, and technology transfer activities with respect to--

        ‘(A) all phases of transportation planning and development (including new technologies, construction, transportation systems management and operations development, design, maintenance, safety, security, financing, data collection and analysis, demand forecasting, multimodal assessment, and traffic conditions); and

        ‘(B) the effect of State laws on the activities described in subparagraph (A).

      ‘(2) TESTS AND DEVELOPMENT- The Secretary may test, develop, or assist in testing and developing, any material, invention, patented article, or process.

      ‘(3) COOPERATION, GRANTS, AND CONTRACTS-

        ‘(A) IN GENERAL- The Secretary may carry out this section--

          ‘(i) independently;

          ‘(ii) in cooperation with--

            ‘(I) any other Federal agency or instrumentality; and

            ‘(II) any Federal laboratory; or

          ‘(iii) by making grants to, or entering into contracts, cooperative agreements, and other transactions with--

            ‘(I) the National Academy of Sciences;

            ‘(II) the American Association of State Highway and Transportation Officials;

            ‘(III) planning organizations;

            ‘(IV) a Federal laboratory;

            ‘(V) a State agency;

            ‘(VI) an authority, association, institution, or organization;

            ‘(VII) a for-profit or nonprofit corporation;

            ‘(VIII) a foreign country; or

            ‘(IX) any other person.

        ‘(B) COMPETITION; REVIEW- All parties entering into contracts, cooperative agreements or other transactions with the Secretary, or receiving grants, to perform research or provide technical assistance under this section shall be selected, to the maximum extent practicable and appropriate--

          ‘(i) on a competitive basis; and

          ‘(ii) on the basis of the results of peer review of proposals submitted to the Secretary.

      ‘(4) TECHNOLOGICAL INNOVATION- The programs and activities carried out under this section shall be consistent with the surface transportation research and technology development strategic plan developed under section 508(c).

      ‘(5) FUNDS-

        ‘(A) SPECIAL ACCOUNT- In addition to other funds made available to carry out this section, the Secretary shall use such funds as may be deposited by any cooperating organization or person in a special account of the Treasury established for this purpose.

        ‘(B) USE OF FUNDS- The Secretary shall use funds made available to carry out this section to develop, administer, communicate, and promote the use of products of research, development, and technology transfer programs under this section.

    ‘(b) COLLABORATIVE RESEARCH AND DEVELOPMENT-

      ‘(1) IN GENERAL- To encourage innovative solutions to surface transportation problems and stimulate the deployment of new technology, the Secretary may carry out, on a cost-shared basis, collaborative research and development with--

        ‘(A) non-Federal entities (including State and local governments, foreign governments, colleges and universities, corporations, institutions, partnerships, sole proprietorships, and trade associations that are incorporated or established under the laws of any State); and

        ‘(B) Federal laboratories.

      ‘(2) AGREEMENTS- In carrying out this subsection, the Secretary may enter into cooperative research and development agreements (as defined in section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a)).

      ‘(3) FEDERAL SHARE-

        ‘(A) IN GENERAL- The Federal share of the cost of activities carried out under a cooperative research and development agreement entered into under this subsection shall not exceed 50 percent, except that if there is substantial public interest or benefit, the Secretary may approve a greater Federal share.

        ‘(B) NON-FEDERAL SHARE- All costs directly incurred by the non-Federal partners, including personnel, travel, and hardware development costs, shall be credited toward the non-Federal share of the cost of the activities described in subparagraph (A).

      ‘(4) USE OF TECHNOLOGY- The research, development, or use of a technology under a cooperative research and development agreement entered into under this subsection, including the terms under which the technology may be licensed and the resulting royalties may be distributed, shall be subject to the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.).

      ‘(5) WAIVER OF ADVERTISING REQUIREMENTS- Section 3709 of the Revised Statutes (41 U.S.C. 5) shall not apply to a contract or agreement entered into under this chapter.

    ‘(c) CONTENTS OF RESEARCH PROGRAM- The Secretary shall include as priority areas of effort within the surface transportation research program--

      ‘(1) the development of new technologies and methods in materials, pavements, structures, design, and construction, with the objectives of--

        ‘(A)(i) increasing to 50 years the expected life of pavements;

        ‘(ii) increasing to 100 years the expected life of bridges; and

        ‘(iii) significantly increasing the durability of other infrastructure;

        ‘(B) lowering the life-cycle costs, including--

          ‘(i) construction costs;

          ‘(ii) maintenance costs;

          ‘(iii) operations costs; and

          ‘(vi) user costs.

      ‘(2) the development, and testing for effectiveness, of nondestructive evaluation technologies for civil infrastructure using existing and new technologies;

      ‘(3) the investigation of--

        ‘(A) the application of current natural hazard mitigation techniques to manmade hazards; and

        ‘(B) the continuation of hazard mitigation research combining manmade and natural hazards;

      ‘(4) the improvement of safety--

        ‘(A) at intersections;

        ‘(B) with respect to accidents involving vehicles run off the road; and

        ‘(C) on rural roads;

      ‘(5) the reduction of work zone incursions and improvement of work zone safety;

      ‘(6) the improvement of geometric design of roads for the purpose of safety;

      ‘(7) the examination of data collected through the national bridge inventory conducted under section 144 using the national bridge inspection standards established under section 151, with the objectives of determining whether--

        ‘(A) the most useful types of data are being collected; and

        ‘(B) any improvement could be made in the types of data collected and the manner in which the data is collected, with respect to bridges in the United States;

      ‘(8) the improvement of the infrastructure investment needs report described in subsection (g) through--

        ‘(A) the study and implementation of new methods of collecting better quality data, particularly with respect to performance, congestion, and infrastructure conditions;

        ‘(B) monitoring of the surface transportation system in a system-wide manner, through the use of--

          ‘(i) intelligent transportation system technologies of traffic operations centers; and

          ‘(ii) other new data collection technologies as sources of better quality performance data;

        ‘(C) the determination of the critical metrics that should be used to determine the condition and performance of the surface transportation system; and

        ‘(D) the study and implementation of new methods of statistical analysis and computer models to improve the prediction of future infrastructure investment requirements;

      ‘(9) the development of methods to improve the determination of benefits from infrastructure improvements, including--

        ‘(A) more accurate calculations of benefit-to-cost ratios, considering benefits and impacts throughout local and regional transportation systems;

        ‘(B) improvements in calculating life-cycle costs; and

        ‘(C) valuation of assets;

      ‘(10) the improvement of planning processes to better predict outcomes of transportation projects, including the application of computer simulations in the planning process to predict outcomes of planning decisions;

      ‘(11) the multimodal applications of Geographic Information Systems and remote sensing, including such areas of application as--

        ‘(A) planning;

        ‘(B) environmental decisionmaking and project delivery; and

        ‘(C) freight movement;

      ‘(12) the development and application of methods of providing revenues to the Highway Trust Fund with the objective of offsetting potential reductions in fuel tax receipts;

      ‘(13) the development of tests and methods to determine the benefits and costs to communities of major transportation investments and projects;

      ‘(14) the conduct of extreme weather research, including research to--

        ‘(A) reduce contraction and expansion damage;

        ‘(B) reduce or repair road damage caused by freezing and thawing;

        ‘(C) improve deicing or snow removal techniques;

        ‘(D) develop better methods to reduce the risk of thermal collapse, including collapse from changes in underlying permafrost;

        ‘(E) improve concrete and asphalt installation in extreme weather conditions; and

        ‘(F) make other improvements to protect highway infrastructure or enhance highway safety or performance;

      ‘(15) the improvement of surface transportation planning;

      ‘(16) environmental research;

      ‘(17) transportation system management and operations; and

      ‘(18) any other surface transportation research topics that the Secretary determines, in accordance with the strategic planning process under section 508, to be critical.

    ‘(d) ADVANCED, HIGH-RISK RESEARCH-

      ‘(1) IN GENERAL- The Secretary shall establish and carry out, in accordance with the surface transportation research and technology development strategic plan developed under section 508(c) and research priority areas described in subsection (c), an advanced research program that addresses longer-term, higher-risk research with potentially dramatic breakthroughs for improving the durability, efficiency, environmental impact, productivity, and safety (including bicycle and pedestrian safety) aspects of highway and intermodal transportation systems.

      ‘(2) PARTNERSHIPS- In carrying out the program, the Secretary shall seek to develop partnerships with the public and private sectors.

      ‘(3) REPORT- The Secretary shall include in the strategic plan required under section 508(c) a description of each of the projects, and the amount of funds expended for each project, carried out under this subsection during the fiscal year.

    ‘(e) LONG-TERM PAVEMENT PERFORMANCE PROGRAM-

      ‘(1) AUTHORITY- The Secretary shall continue, through September 30, 2009, the long-term pavement performance program tests, monitoring, and data analysis.

      ‘(2) GRANTS, COOPERATIVE AGREEMENTS, AND CONTRACTS- Under the program, the Secretary shall make grants and enter into cooperative agreements and contracts to--

        ‘(A) monitor, material-test, and evaluate highway test sections in existence as of the date of the grant, agreement, or contract;

        ‘(B) analyze the data obtained in carrying out subparagraph (A); and

        ‘(C) prepare products to fulfill program objectives and meet future pavement technology needs.

      ‘(3) CONCLUSION OF PROGRAM-

        ‘(A) SUMMARY REPORT- The Secretary shall include in the strategic plan required under section 508(c) a report on the initial conclusions of the long-term pavement performance program that includes--

          ‘(i) an analysis of any research objectives that remain to be achieved under the program;

          ‘(ii) an analysis of other associated longer-term expenditures under the program that are in the public interest;

          ‘(iii) a detailed plan regarding the storage, maintenance, and user support of the database, information management system, and materials reference library of the program;

          ‘(iv) a schedule for continued implementation of the necessary data collection and analysis and project plan under the program; and

          ‘(v) an estimate of the costs of carrying out each of the activities described in clauses (i) through (iv) for each fiscal year during which the program is carried out.

        ‘(B) DEADLINE; USEFULNESS OF ADVANCES- The Secretary shall, to the maximum extent practicable--

          ‘(i) ensure that the long-term pavement performance program is concluded not later than September 30, 2009; and

          ‘(ii) make such allowances as are necessary to ensure the usefulness of the technological advances resulting from the program.

    ‘(f) SEISMIC RESEARCH- The Secretary shall--

      ‘(1) in consultation and cooperation with Federal agencies participating in the National Earthquake Hazards Reduction Program established by section 5 of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7704), coordinate the conduct of seismic research;

      ‘(2) take such actions as are necessary to ensure that the coordination of the research is consistent with--

        ‘(A) planning and coordination activities of the Director of the Federal Emergency Management Agency under section 5(b)(1) of that Act (42 U.S.C. 7704(b)(1)); and

        ‘(B) the plan developed by the Director of the Federal Emergency Management Agency under section 8(b) of that Act (42 U.S.C. 7705b(b)); and

      ‘(3) in cooperation with the Center for Civil Engineering Research at the University of Nevada, Reno, carry out a seismic research program--

        ‘(A) to study the vulnerability of the Federal-aid highway system and other surface transportation systems to seismic activity;

        ‘(B) to develop and implement cost-effective methods to reduce the vulnerability; and

        ‘(C) to conduct seismic research and upgrade earthquake simulation facilities as necessary to carry out the program.

    ‘(g) INFRASTRUCTURE INVESTMENT NEEDS REPORT-

      ‘(1) IN GENERAL- Not later than July 31, 2004, and July 31 of every second year thereafter, 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--

        ‘(A) estimates of the future highway and bridge needs of the United States; and

        ‘(B) the backlog of current highway and bridge needs.

      ‘(2) COMPARISON WITH PRIOR REPORTS- Each report under paragraph (1) shall provide the means, including all necessary information, to relate and compare the conditions and service measures used in the previous biennial reports.

    ‘(h) SECURITY RELATED RESEARCH AND TECHNOLOGY TRANSFER ACTIVITIES-

      ‘(1) IN GENERAL- Not later than 180 days after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Secretary, in consultation with the Secretary of Homeland Security, with key stakeholder input (including State transportation departments) shall develop a 5-year strategic plan for research and technology transfer and deployment activities pertaining to the security aspects of highway infrastructure and operations.

      ‘(2) COMPONENTS OF PLAN- The plan shall include--

        ‘(A) an identification of which agencies are responsible for the conduct of various research and technology transfer activities;

        ‘(B) a description of the manner in which those activities will be coordinated; and

        ‘(C) a description of the process to be used to ensure that the advances derived from relevant activities supported by the Federal Highway Administration are consistent with the operational guidelines, policies, recommendations, and regulations of the Department of Homeland Security; and

        ‘(D) a systematic evaluation of the research that should be conducted to address, at a minimum--

          ‘(i) vulnerabilities of, and measures that may be taken to improve, emergency response capabilities and evacuations;

          ‘(ii) recommended upgrades of traffic management during crises;

          ‘(iii) integrated, interoperable emergency communications among the public, the military, law enforcement, fire and emergency medical services, and transportation agencies;

          ‘(iv) protection of critical, security-related infrastructure; and

          ‘(v) structural reinforcement of key facilities.

      ‘(3) SUBMISSION- On completion of the plan under this subsection, 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) a copy of the plan developed under paragraph (1); and

        ‘(B) a copy of a memorandum of understanding specifying coordination strategies and assignment of responsibilities covered by the plan that is signed by the Secretary and the Secretary of Homeland Security.

    ‘(i) HIGH-PERFORMANCE CONCRETE BRIDGE RESEARCH AND TECHNOLOGY TRANSFER PROGRAM- In accordance with the objectives described in subsection (c)(1) and the requirements under sections 503(b)(4) and 504(b), the Secretary shall carry out a program to demonstrate the application of high-performance concrete in the construction and rehabilitation of bridges.

    ‘(j) BIOBASED TRANSPORTATION RESEARCH- There shall be available from the Highway Trust Fund (other than the Mass Transit Account) $18,000,000 for each of fiscal years 2004 through 2009 equally divided and available to carry out biobased research of national importance at the National Biodiesel Board and at research centers identified in section 9011 of Public Law 107-171.

‘Sec. 503. Technology application program

    ‘(a) TECHNOLOGY APPLICATION INITIATIVES AND PARTNERSHIPS PROGRAM-

      ‘(1) ESTABLISHMENT- The Secretary, in consultation with interested stakeholders, shall develop and administer a national technology and innovation application initiatives and partnerships program.

      ‘(2) PURPOSE- The purpose of the program shall be to significantly accelerate the adoption of technology and innovation by the surface transportation community.

      ‘(3) APPLICATION GOALS-

        ‘(A) ESTABLISHMENT- Not later than 180 days after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Secretary, in consultation with the Surface Transportation Research Technology Advisory Committee, State transportation departments, and other interested stakeholders, shall establish, as part of the surface transportation research and technology development strategic plan under section 508(c), goals to carry out paragraph (1).

        ‘(B) DESIGN- Each of the goals and the program developed to achieve the goals shall be designed to provide tangible benefits, with respect to transportation systems, in the areas of efficiency, safety, reliability, service life, environmental protection, and sustainability.

        ‘(C) STRATEGIES FOR ACHIEVEMENT- For each goal, the Secretary, in cooperation with representatives of the transportation community, such as States, local governments, the private sector, and academia, shall use domestic and international technology to develop strategies and initiatives to achieve the goal, including technical assistance in deploying technology and mechanisms for sharing information among program participants.

      ‘(4) INTEGRATION WITH OTHER PROGRAMS- The Secretary shall integrate activities carried out under this subsection with the efforts of the Secretary to--

        ‘(A) disseminate the results of research sponsored by the Secretary; and

        ‘(B) facilitate technology transfer.

      ‘(5) LEVERAGING OF FEDERAL RESOURCES- In selecting projects to be carried out under this subsection, the Secretary shall give preference to projects that leverage Federal funds with other significant public or private resources.

      ‘(6) GRANTS, COOPERATIVE AGREEMENTS, AND CONTRACTS- Under the program, the Secretary may make grants and enter into cooperative agreements and contracts to foster alliances and support efforts to stimulate advances in transportation technology.

      ‘(7) REPORTS- The results and progress of activities carried out under this section shall be published as part of the annual transportation research report prepared by the Secretary under section 508(c)(5).

      ‘(8) ALLOCATION- To the extent appropriate to achieve the goals established under paragraph (3), the Secretary may further allocate funds made available to carry out this section to States for use by those States.

    ‘(b) INNOVATIVE SURFACE TRANSPORTATION INFRASTRUCTURE RESEARCH AND CONSTRUCTION PROGRAM-

      ‘(1) IN GENERAL- The Secretary shall establish and carry out a program for the application of innovative material, design, and construction technologies in the construction, preservation, and rehabilitation of elements of surface transportation infrastructure.

      ‘(2) GOALS- The goals of the program shall include--

        ‘(A) the development of new, cost-effective, and innovative materials;

        ‘(B) the reduction of maintenance costs and life-cycle costs of elements of infrastructure, including the costs of new construction, replacement, and rehabilitation;

        ‘(C) the development of construction techniques to increase safety and reduce construction time and traffic congestion;

        ‘(D) the development of engineering design criteria for innovative products and materials for use in surface transportation infrastructure;

        ‘(E) the development of highway bridges and structures that will withstand natural disasters and disasters caused by human activity; and

        ‘(F) the development of new, nondestructive technologies and techniques for the evaluation of elements of transportation infrastructure.

      ‘(3) GRANTS, COOPERATIVE AGREEMENTS, AND CONTRACTS-

        ‘(A) IN GENERAL- Under the program, the Secretary shall make grants to, and enter into cooperative agreements and contracts with--

          ‘(i) States, other Federal agencies, universities and colleges, private sector entities, and nonprofit organizations, to pay the Federal share of the cost of research, development, and technology transfer concerning innovative materials and methods; and

          ‘(ii) States, to pay the Federal share of the cost of repair, rehabilitation, replacement, and new construction of elements of surface transportation infrastructure that demonstrate the application of innovative materials and methods.

        ‘(B) APPLICATIONS-

          ‘(i) IN GENERAL- To receive a grant under this subsection, an entity described in subparagraph (A) shall submit to the Secretary an application in such form and containing such information as the Secretary may require.

          ‘(ii) APPROVAL- The Secretary shall select and approve an application based on whether the proposed project that is the subject of the application would meet the goals described in paragraph (2).

      ‘(4) TECHNOLOGY AND INFORMATION TRANSFER- The Secretary shall take such action as is necessary to--

        ‘(A) ensure that the information and technology resulting from research conducted under paragraph (3) is made available to State and local transportation departments and other interested parties, as specified by the Secretary; and

        ‘(B) encourage the use of the information and technology.

      ‘(5) FEDERAL SHARE- The Federal share of the cost of a project under this section shall be determined by the Secretary.

‘Sec. 504. Training and education

    ‘(a) NATIONAL HIGHWAY INSTITUTE-

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

        ‘(A) operate, in the Federal Highway Administration, a National Highway Institute (referred to in this subsection as the ‘Institute’); and

        ‘(B) administer, through the Institute, the authority vested in the Secretary by this title or by any other law for the development and conduct of education and training programs relating to highways.

      ‘(2) DUTIES OF THE INSTITUTE- In cooperation with State transportation departments, industries in the United States, and national or international entities, the Institute shall develop and administer education and training programs of instruction for--

        ‘(A) Federal Highway Administration, State, and local transportation agency employees;

        ‘(B) regional, State, and metropolitan planning organizations;

        ‘(C) State and local police, public safety, and motor vehicle employees; and

        ‘(D) United States citizens and foreign nationals engaged or to be engaged in surface transportation work of interest to the United States.

      ‘(3) COURSES-

        ‘(A) IN GENERAL- The Institute shall--

          ‘(i) develop or update existing courses in asset management, including courses that include such components as--

            ‘(I) the determination of life-cycle costs;

            ‘(II) the valuation of assets;

            ‘(III) benefit-to-cost ratio calculations; and

            ‘(IV) objective decisionmaking processes for project selection; and

          ‘(ii) continually develop courses relating to the application of emerging technologies for--

            ‘(I) transportation infrastructure applications and asset management;

            ‘(II) intelligent transportation systems;

            ‘(III) operations (including security operations);

            ‘(IV) the collection and archiving of data;

            ‘(V) expediting the planning and development of transportation projects; and

            ‘(VI) the intermodal movement of individuals and freight.

        ‘(B) ADDITIONAL COURSES- In addition to the courses developed under subparagraph (A), the Institute, in consultation with State transportation departments, metropolitan planning organizations, and the American Association of State Highway and Transportation Officials, may develop courses relating to technology, methods, techniques, engineering, construction, safety, maintenance, environmental mitigation and compliance, regulations, management, inspection, and finance.

        ‘(C) REVISION OF COURSES OFFERED- The Institute shall periodically--

          ‘(i) review the course inventory of the Institute; and

          ‘(ii) revise or cease to offer courses based on course content, applicability, and need.

      ‘(4) ELIGIBILITY; FEDERAL SHARE- The funds apportioned to a State under section 104(b)(3) for the surface transportation program shall be available for expenditure by the State transportation department for the payment of not to exceed 80 percent of the cost of tuition and direct educational expenses (excluding salaries) in connection with the education and training of employees of State and local transportation agencies in accordance with this subsection.

      ‘(5) FEDERAL RESPONSIBILITY-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), education and training of employees of Federal, State, and local transportation (including highway) agencies authorized under this subsection may be provided--

          ‘(i) by the Secretary, at no cost to the States and local governments, if the Secretary determines that provision at no cost is in the public interest; or

          ‘(ii) by the State, through grants, cooperative agreements, and contracts with public and private agencies, institutions, individuals, and the Institute.

        ‘(B) PAYMENT OF FULL COST BY PRIVATE PERSONS- Private agencies, international or foreign entities, and individuals shall pay the full cost of any education and training (including the cost of course development) received by the agencies, entities, and individuals, unless the Secretary determines that payment of a lesser amount of the cost is of critical importance to the public interest.

      ‘(6) TRAINING FELLOWSHIPS; COOPERATION- The Institute may--

        ‘(A) engage in training activities authorized under this subsection, including the granting of training fellowships; and

        ‘(B) exercise the authority of the Institute independently or in cooperation with any--

          ‘(i) other Federal or State agency;

          ‘(ii) association, authority, institution, or organization;

          ‘(iii) for-profit or nonprofit corporation;

          ‘(iv) national or international entity;

          ‘(v) foreign country; or

          ‘(vi) person.

      ‘(7) COLLECTION OF FEES-

        ‘(A) IN GENERAL- In accordance with this subsection, the Institute may assess and collect fees to defray the costs of the Institute in developing or administering education and training programs under this subsection.

        ‘(B) PERSONS SUBJECT TO FEES- Fees may be assessed and collected under this subsection only with respect to--

          ‘(i) persons and entities for whom education or training programs are developed or administered under this subsection; and

          ‘(ii) persons and entities to whom education or training is provided under this subsection.

        ‘(C) AMOUNT OF FEES- The fees assessed and collected under this subsection shall be established in a manner that ensures that the liability of any person or entity for a fee is reasonably based on the proportion of the costs referred to in subparagraph (A) that relate to the person or entity.

        ‘(D) USE- All fees collected under this subsection shall be used, without further appropriation, to defray costs associated with the development or administration of education and training programs authorized under this subsection.

      ‘(8) RELATION TO FEES- The funds made available to carry out this subsection may be combined with or held separate from the fees collected under--

        ‘(A) paragraph (7);

        ‘(B) memoranda of understanding;

        ‘(C) regional compacts; and

        ‘(D) other similar agreements.

    ‘(b) LOCAL TECHNICAL ASSISTANCE PROGRAM-

      ‘(1) AUTHORITY- The Secretary shall carry out a local technical assistance program that will provide access to surface transportation technology to--

        ‘(A) highway and transportation agencies in urbanized areas;

        ‘(B) highway and transportation agencies in rural areas;

        ‘(C) contractors that perform work for the agencies; and

        ‘(D) infrastructure security.

      ‘(2) GRANTS, COOPERATIVE AGREEMENTS, AND CONTRACTS- The Secretary may make grants and enter into cooperative agreements and contracts to provide education and training, technical assistance, and related support services to--

        ‘(A) assist rural, local transportation agencies and tribal governments, and the consultants and construction personnel working for the agencies and governments, to--

          ‘(i) develop and expand expertise in road and transportation areas (including pavement, bridge, concrete structures, intermodal connections, safety management systems, intelligent transportation systems, incident response, operations, and traffic safety countermeasures);

          ‘(ii) improve roads and bridges;

          ‘(iii) enhance--

            ‘(I) programs for the movement of passengers and freight; and

            ‘(II) intergovernmental transportation planning and project selection; and

          ‘(iv) deal effectively with special transportation-related problems by preparing and providing training packages, manuals, guidelines, and technical resource materials;

        ‘(B) develop technical assistance for tourism and recreational travel;

        ‘(C) identify, package, and deliver transportation technology and traffic safety information to local jurisdictions to assist urban transportation agencies in developing and expanding their ability to deal effectively with transportation-related problems (particularly the promotion of regional cooperation);

        ‘(D) operate, in cooperation with State transportation departments and universities--

          ‘(i) local technical assistance program centers designated to provide transportation technology transfer services to rural areas and to urbanized areas; and

          ‘(ii) local technical assistance program centers designated to provide transportation technical assistance to tribal governments; and

        ‘(E) allow local transportation agencies and tribal governments, in cooperation with the private sector, to enhance new technology implementation.

    ‘(c) RESEARCH FELLOWSHIPS-

      ‘(1) GENERAL AUTHORITY- The Secretary, acting independently or in cooperation with other Federal agencies and instrumentalities, may make grants for research fellowships for any purpose for which research is authorized by this chapter.

      ‘(2) DWIGHT DAVID EISENHOWER TRANSPORTATION FELLOWSHIP PROGRAM- The Secretary shall establish and implement a transportation research fellowship program, to be known as the ‘Dwight David Eisenhower Transportation Fellowship Program’, for the purpose of attracting qualified students to the field of transportation.

‘Sec. 505. State planning and research

    ‘(a) IN GENERAL- Two percent of the sums apportioned to a State for fiscal year 2004 and each fiscal year thereafter under sections 104 (other than subsections (f) and (h)) and 144 shall be available for expenditure by the State, in consultation with the Secretary, only for--

      ‘(1) the conduct of engineering and economic surveys and investigations;

      ‘(2) the planning of--

        ‘(A) future highway programs and local public transportation systems; and

        ‘(B) the financing of those programs and systems, including metropolitan and statewide planning under sections 134 and 135;

      ‘(3) the development and implementation of management systems under section 303;

      ‘(4) the conduct of studies on--

        ‘(A) the economy, safety, and convenience of surface transportation systems; and

        ‘(B) the desirable regulation and equitable taxation of those systems;

      ‘(5) research, development, and technology transfer activities necessary in connection with the planning, design, construction, management, and maintenance of highway, public transportation, and intermodal transportation systems;

      ‘(6) the conduct of studies, research, and training relating to the engineering standards and construction materials for surface transportation systems described in paragraph (5) (including the evaluation and accreditation of inspection and testing and the regulation of and charging for the use of the standards and materials); and

      ‘(7) the conduct of activities relating to the planning of real-time monitoring elements.

    ‘(b) MINIMUM EXPENDITURES ON RESEARCH, DEVELOPMENT, AND TECHNOLOGY TRANSFER ACTIVITIES-

      ‘(1) IN GENERAL- Subject to paragraph (2), not less than 25 percent of the funds subject to subsection (a) that are apportioned to a State for a fiscal year shall be expended by the State for research, development, and technology transfer activities that--

        ‘(A) are described in subsection (a); and

        ‘(B) relate to highway, public transportation, and intermodal transportation systems.

      ‘(2) WAIVERS- The Secretary may waive the application of paragraph (1) with respect to a State for a fiscal year if--

        ‘(A) the State certifies to the Secretary for the fiscal year that total expenditures by the State for transportation planning under sections 134 and 135 will exceed 75 percent of the funds described in paragraph (1); and

        ‘(B) the Secretary accepts the certification of the State.

      ‘(3) NONAPPLICABILITY OF ASSESSMENT- Funds expended under paragraph (1) shall not be considered to be part of the extramural budget of the agency for the purpose of section 9 of the Small Business Act (15 U.S.C. 638).

    ‘(c) FEDERAL SHARE- The Federal share of the cost of a project carried out using funds subject to subsection (a) shall be the share applicable under section 120(b), as adjusted under subsection (d) of that section.

    ‘(d) ADMINISTRATION OF SUMS- Funds subject to subsection (a) shall be--

      ‘(1) combined and administered by the Secretary as a single fund; and

      ‘(2) available for obligation for the period described in section 118(b)(2).

    ‘(e) ELIGIBLE USE OF STATE PLANNING AND RESEARCH FUNDS- A State, in coordination with the Secretary, may obligate funds made available to carry out this section for any purpose authorized under section 506(a).

‘Sec. 506. International highway transportation outreach program

    ‘(a) ESTABLISHMENT- The Secretary may establish an international highway transportation outreach program--

      ‘(1) to inform the United States highway community of technological innovations in foreign countries that could significantly improve highway transportation in the United States;

      ‘(2) to promote United States highway transportation expertise, goods, and services in foreign countries; and

      ‘(3) to increase transfers of United States highway transportation technology to foreign countries.

    ‘(b) ACTIVITIES- Activities carried out under the program may include--

      ‘(1) the development, monitoring, assessment, and dissemination in the United States of information about highway transportation innovations in foreign countries that could significantly improve highway transportation in the United States;

      ‘(2) research, development, demonstration, training, and other forms of technology transfer and exchange;

      ‘(3) the provision to foreign countries, through participation in trade shows, seminars, expositions, and other similar activities, of information relating to the technical quality of United States highway transportation goods and services;

      ‘(4) the offering of technical services of the Federal Highway Administration that cannot be readily obtained from private sector firms in the United States for incorporation into the proposals of those firms undertaking highway transportation projects outside the United States, if the costs of the technical services will be recovered under the terms of the project;

      ‘(5) the conduct of studies to assess the need for, or feasibility of, highway transportation improvements in foreign countries; and

      ‘(6) the gathering and dissemination of information on foreign transportation markets and industries.

    ‘(c) COOPERATION- The Secretary may carry out this section in cooperation with any appropriate--

      ‘(1) Federal, State, or local agency;

      ‘(2) authority, association, institution, or organization;

      ‘(3) for-profit or nonprofit corporation;

      ‘(4) national or international entity;

      ‘(5) foreign country; or

      ‘(6) person.

    ‘(d) FUNDS-

      ‘(1) CONTRIBUTIONS- Funds available to carry out this section shall include funds deposited by any cooperating organization or person into a special account of the Treasury established for this purpose.

      ‘(2) ELIGIBLE USES OF FUNDS- The funds deposited into the account, and other funds available to carry out this section, shall be available to cover the cost of any activity eligible under this section, including the cost of--

        ‘(A) promotional materials;

        ‘(B) travel;

        ‘(C) reception and representation expenses; and

        ‘(D) salaries and benefits.

      ‘(3) REIMBURSEMENTS FOR SALARIES AND BENEFITS- Reimbursements for salaries and benefits of Department of Transportation employees providing services under this section shall be credited to the account.

    ‘(e) REPORT--For each fiscal year, 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 destinations and individual trip costs of international travel conducted in carrying out activities described in this section.

‘Sec. 507. Surface transportation-environmental cooperative research program

    ‘(a) IN GENERAL- The Secretary shall establish and carry out a surface transportation-environmental cooperative research program.

    ‘(b) CONTENTS- The program carried out under this section may include research--

      ‘(1) to develop more accurate models for evaluating transportation control measures and transportation system designs that are appropriate for use by State and local governments (including metropolitan planning organizations) in designing implementation plans to meet Federal, State, and local environmental requirements;

      ‘(2) to improve understanding of the factors that contribute to the demand for transportation;

      ‘(3) to develop indicators of economic, social, and environmental performance of transportation systems to facilitate analysis of potential alternatives;

      ‘(4) to meet additional priorities as determined by the Secretary in the strategic planning process under section 508; and

      ‘(5) to refine, through the conduct of workshops, symposia, and panels, and in consultation with stakeholders (including the Department of Energy, the Environmental Protection Agency, and other appropriate Federal and State agencies and associations) the scope and research emphases of the program.

    ‘(c) PROGRAM ADMINISTRATION- The Secretary shall--

      ‘(1) administer the program established under this section; and

      ‘(2) ensure, to the maximum extent practicable, that--

        ‘(A) the best projects and researchers are selected to conduct research in the priority areas described in subsection (b)--

          ‘(i) on the basis of merit of each submitted proposal; and

          ‘(ii) through the use of open solicitations and selection by a panel of appropriate experts;

        ‘(B) a qualified, permanent core staff with the ability and expertise to manage a large multiyear budget is used;

        ‘(C) the stakeholders are involved in the governance of the program, at the executive, overall program, and technical levels, through the use of expert panels and committees; and

        ‘(D) there is no duplication of research effort between the program established under this section and the new strategic highway research program established under section 509.

    ‘(d) NATIONAL ACADEMY OF SCIENCES- The Secretary may make grants to, and enter into cooperative agreements with, the National Academy of Sciences to carry out such activities relating to the research, technology, and technology transfer activities described in subsections (b) and (c) as the Secretary determines to be appropriate.

‘Sec. 508. Surface transportation research technology deployment and strategic planning

    ‘(a) PLANNING-

      ‘(1) ESTABLISHMENT- The Secretary shall--

        ‘(A) establish, in accordance with section 306 of title 5, a strategic planning process that--

          ‘(i) enhances effective implementation of this section through the establishment in accordance with paragraph (2) of the Surface Transportation Research Technology Advisory Committee; and

          ‘(ii) focuses on surface transportation research funded through paragraphs (1), (2), (4), and (5) of section 2001(a) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, taking into consideration national surface transportation system needs and intermodality requirements;

        ‘(B) coordinate Federal surface transportation research, technology development, and deployment activities;

        ‘(C) at such intervals as are appropriate and practicable, measure the results of those activities and the ways in which the activities affect the performance of the surface transportation systems of the United States; and

        ‘(D) ensure, to the maximum extent practicable, that planning and reporting activities carried out under this section are coordinated with all other surface transportation planning and reporting requirements.

      ‘(2) SURFACE TRANSPORTATION RESEARCH TECHNOLOGY ADVISORY COMMITTEE-

        ‘(A) ESTABLISHMENT- Not later than 90 days after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Secretary shall establish a committee to be known as the ‘Surface Transportation Research Technology Advisory Committee’ (referred to in this section as the ‘Committee’).

        ‘(B) MEMBERSHIP- The Committee shall be composed of 12 members appointed by the Secretary--

          ‘(i) each of which shall have expertise in a particular area relating to Federal surface transportation programs, including--

            ‘(I) safety;

            ‘(II) operations;

            ‘(III) infrastructure (including pavements and structures);

            ‘(IV) planning and environment;

            ‘(V) policy; and

            ‘(VI) asset management; and

          ‘(ii) of which--

            ‘(I) 3 members shall be individuals representing the Federal Government;

            ‘(II) 3 members--

‘(aa) shall be exceptionally qualified to serve on the Committee, as determined by the Secretary, based on education, training, and experience; and

‘(bb) shall not be officers or employees of the United States;

            ‘(III) 3 members--

‘(aa) shall represent the transportation industry (including the pavement industry); and

‘(bb) shall not be officers or employees of the United States; and

            ‘(IV) 3 members shall represent State transportation departments from 3 different geographical regions of the United States.

        ‘(C) MEETINGS- The advisory subcommittees shall meet on a regular basis, but not less than twice each year.

        ‘(D) DUTIES- The Committee shall provide to the Secretary, on a continuous basis, advice and guidance relating to--

          ‘(i) the determination of surface transportation research priorities;

          ‘(ii) the improvement of the research planning and implementation process;

          ‘(iii) the design and selection of research projects;

          ‘(iv) the review of research results;

          ‘(v) the planning and implementation of technology transfer activities and

          ‘(vi) the formulation of the surface transportation research and technology deployment and deployment strategic plan required under subsection (c).

        ‘(E) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this paragraph $200,000 for each fiscal year.

    ‘(b) IMPLEMENTATION- The Secretary shall--

      ‘(1) provide for the integrated planning, coordination, and consultation among the operating administrations of the Department of Transportation, all other Federal agencies with responsibility for surface transportation research and technology development, State and local governments, institutions of higher education, industry, and other private and public sector organizations engaged in surface transportation-related research and development activities; and

      ‘(2) ensure that the surface transportation research and technology development programs of the Department do not duplicate other Federal, State, or private sector research and development programs.

    ‘(c) SURFACE TRANSPORTATION RESEARCH AND TECHNOLOGY DEPLOYMENT STRATEGIC PLAN-

      ‘(1) IN GENERAL- After receiving, and based on, extensive consultation and input from stakeholders representing the transportation community and the Surface Transportation Research Advisory Committee, the Secretary shall, not later than 1 year after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, complete, and shall periodically update thereafter, a strategic plan for each of the core surface transportation research areas, including--

        ‘(A) safety;

        ‘(B) operations;

        ‘(C) infrastructure (including pavements and structures);

        ‘(D) planning and environment;

        ‘(E) policy; and

        ‘(F) asset management.

      ‘(2) COMPONENTS- The strategic plan shall specify--

        ‘(A) surface transportation research objectives and priorities;

        ‘(B) specific surface transportation research projects to be conducted;

        ‘(C) recommended technology transfer activities to promote the deployment of advances resulting from the surface transportation research conducted; and

        ‘(D) short- and long-term technology development and deployment activities.

      ‘(3) REVIEW AND SUBMISSION OF FINDINGS- The Secretary shall enter into a contract with the Transportation Research Board of the National Academy of Sciences, on behalf of the Research and Technology Coordinating Committee of the National Research Council, under which--

        ‘(A) the Transportation Research Board shall--

          ‘(i) review the research and technology planning and implementation process used by Federal Highway Administration; and

          ‘(ii) evaluate each of the strategic plans prepared under this subsection--

            ‘(I) to ensure that sufficient stakeholder input is being solicited and considered throughout the preparation process; and

            ‘(II) to offer recommendations relevant to research priorities, project selection, and deployment strategies; and

        ‘(B) the Secretary shall ensure that the Research and Technology Coordinating Committee, in a timely manner, informs the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives of the findings of the review and evaluation under subparagraph (A).

      ‘(4) RESPONSES OF SECRETARY- Not later than 60 days after the date of completion of the strategic plan under this subsection, 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 written responses to each of the recommendations of the Research and Technology Coordinating Committee under paragraph (3)(A)(ii)(II).

    ‘(d) CONSISTENCY WITH GOVERNMENT PERFORMANCE AND RESULTS ACT OF 1993- The plans and reports developed under this section shall be consistent with and incorporated as part of the plans developed under section 306 of title 5 and sections 1115 and 1116 of title 31.

‘Sec. 509. New strategic highway research program

    ‘(a) IN GENERAL- The National Research Council shall establish and carry out, through fiscal year 2009, a new strategic highway research program.

    ‘(b) BASIS; PRIORITIES- With respect to the program established under subsection (a)--

      ‘(1) the program shall be based on--

        ‘(A) National Research Council Special Report No. 260, entitled ‘Strategic Highway Research’; and

        ‘(B) the results of the detailed planning work subsequently carried out to scope the research areas through National Cooperative Research Program Project 20-58.

      ‘(2) the scope and research priorities of the program shall--

        ‘(A) be refined through stakeholder input in the form of workshops, symposia, and panels; and

        ‘(B) include an examination of--

          ‘(i) the roles of highway infrastructure, drivers, and vehicles in fatalities on public roads;

          ‘(ii) high-risk areas and activities associated with the greatest numbers of highway fatalities;

          ‘(iii) the roles of various levels of government agencies and non-governmental organizations in reducing highway fatalities (including recommendations for methods of strengthening highway safety partnerships);

          ‘(iv) measures that may save the greatest number of lives in the short- and long-term;

          ‘(v) renewal of aging infrastructure with minimum impact on users of facilities;

          ‘(vi) driving behavior and likely crash causal factors to support improved countermeasures;

          ‘(vii) reduction in congestion due to nonrecurring congestion;

          ‘(viii) planning and designing of new road capacity to meet mobility, economic, environmental, and community needs;

      ‘(3) the program shall consider, at a minimum, the results of studies relating to the implementation of the Strategic Highway Safety Plan prepared by the American Association of State Highway and Transportation Officials; and

      ‘(4) the research results of the program, expressed in terms of technologies, methodologies, and other appropriate categorizations, shall be disseminated to practicing engineers as soon as practicable for their use.

    ‘(c) PROGRAM ADMINISTRATION- In carrying out the program under this section, the National Research Council shall ensure, to the maximum extent practicable, that--

      ‘(1) the best projects and researchers are selected to conduct research for the program and priorities described in subsection (b)--

        ‘(A) on the basis of the merit of each submitted proposal; and

        ‘(B) through the use of open solicitations and selection by a panel of appropriate experts;

      ‘(2) the National Research Council acquires a qualified, permanent core staff with the ability and expertise to manage a large research program and multiyear budget;

      ‘(3) the stakeholders are involved in the governance of the program, at the executive, overall program, and technical levels, through the use of expert panels and committees; and

      ‘(4) there is no duplication of research effort between the program established under this section and the surface transportation-environment cooperative research program established under section 507 or any other research effort of the Department.

    ‘(d) NATIONAL ACADEMY OF SCIENCES- The Secretary may make grants to, and enter into cooperative agreements with, the National Academy of Sciences to carry out such activities relating to research, technology, and technology transfer described in subsections (b) and (c) as the Secretary determines to be appropriate.

    ‘(e) REPORT ON IMPLEMENTATION OF RESULTS-

      ‘(1) IN GENERAL- Not later than October 1, 2007, the Secretary shall enter into a contract with the Transportation Research Board of the National Academy of Sciences under which the Transportation Research Board shall complete a report on the strategies and administrative structure to be used for implementation of the results of new strategic highway research program.

      ‘(2) COMPONENTS- The report under paragraph (1) shall include, with respect to the new strategic highway research program--

        ‘(A) an identification of the most promising results of research under the program (including the persons most likely to use the results);

        ‘(B) a discussion of potential incentives for, impediments to, and methods of, implementing those results;

        ‘(C) an estimate of costs that would be incurred in expediting implementation of those results; and

        ‘(D) recommendations for the way in which implementation of the results of the program under this section should be conducted, coordinated, and supported in future years, including a discussion of the administrative structure and organization best suited to carry out those responsibilities.

      ‘(3) CONSULTATION- In developing the report, the Transportation Research Board shall consult with a wide variety of stakeholders, including--

        ‘(A) the American Association of State highway Officials;

        ‘(B) the Federal Highway Administration; and

        ‘(C) the Surface Transportation Research Technology Advisory Committee.

      ‘(4) SUBMISSION- Not later than February 1, 2009, 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 the report under this subsection.

‘Sec. 510. University transportation centers

    ‘(a) CENTERS-

      ‘(1) IN GENERAL- During fiscal year 2004, the Secretary shall provide grants to 40 nonprofit institutions of higher learning (or consortia of institutions of higher learning) to establish centers to address transportation design, management, research, development, and technology matters, especially the education and training of greater numbers of individuals to enter into the professional field of transportation.

      ‘(2) DISTRIBUTION OF CENTERS- Not more than 1 university transportation center (or lead university in a consortia of institutions of higher learning), other than a center or university selected through a competitive process, may be located in any State.

      ‘(3) IDENTIFICATION OF CENTERS- The university transportation centers established under this section shall--

        ‘(A) comply with applicable requirements under subsection (c); and

        ‘(B) be located at the institutions of higher learning specified in paragraph (4).

      ‘(4) IDENTIFICATION OF GROUPS- For the purpose of making grants under this subsection, the following grants are identified:

        ‘(A) GROUP A- Group A shall consist of the 10 regional centers selected under subsection (b).

        ‘(B) GROUP B- Group B shall consist of the following:

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          ‘(ii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(iii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

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          ‘(v) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(vi) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(vii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(viii) [Struck out->][ XXXXXXXXX ][<-Struck out]

          ‘(ix) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(x) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(xi) [Struck out->][ XXXXXXXXX ][<-Struck out] .

        ‘(C) GROUP C- Group C shall consist of the following:

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          ‘(ii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(iii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(iv) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(v) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(vi) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(vii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(viii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(ix) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(x) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(xi) [Struck out->][ XXXXXXXXX ][<-Struck out] .

        ‘(D) GROUP D- Group D shall consist of the following:

          ‘(i) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(ii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(iii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(iv) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(v) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(vi) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(vii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

          ‘(viii) [Struck out->][ XXXXXXXXX ][<-Struck out] .

    ‘(b) REGIONAL CENTERS-

      ‘(1) IN GENERAL- Not later than September 30, 2004, the Secretary shall provide to nonprofit institutions of higher learning (or consortia of institutions of higher learning) grants to be used during the period of fiscal years 2005 through 2009 to establish and operate 1 university transportation center in each of the 10 Federal regions that comprise the Standard Federal Regional Boundary System.

      ‘(2) SELECTION OF REGIONAL CENTERS-

        ‘(A) PROPOSALS- In order to be eligible to receive a grant under this subsection, an institution described in paragraph (1) shall submit to the Secretary a proposal, in response to any request for proposals that shall be made by the Secretary, that is in such form and contains such information as the Secretary shall prescribe.

        ‘(B) REQUEST SCHEDULE- The Secretary shall request proposals once for the period of fiscal years 2004 through 2006 and once for the period of fiscal years 2007 through 2009.

        ‘(C) ELIGIBILITY- Any institution of higher learning (or consortium of institutions of higher learning) that meets the criteria described in subsection (c) (including any institution identified in subsection (a)(4)) may apply for a grant under this subsection.

        ‘(D) SELECTION CRITERIA- The Secretary shall select each recipient of a grant under this subsection through a competitive process on the basis of--

          ‘(i) the location of the center within the Federal region to be served;

          ‘(ii) the demonstrated research capabilities and extension resources available to the recipient to carry out this section;

          ‘(iii) the capability of the recipient to provide leadership in making national and regional contributions to the solution of immediate and long-range transportation problems;

          ‘(iv) the demonstrated ability of the recipient to disseminate results of transportation research and education programs through a statewide or regionwide continuing education program; and

          ‘(v) the strategic plan that the recipient proposes to carry out using funds from the grant.

        ‘(E) SELECTION PROCESS- In selecting the recipients of grants under this subsection, the Secretary shall consult with, and consider the advice of--

          ‘(i) the Research and Special Programs Administration;

          ‘(ii) the Federal Highway Administration; and

          ‘(iii) the Federal Transit Administration.

    ‘(c) CENTER REQUIREMENTS-

      ‘(1) IN GENERAL- With respect to a university transportation center established under subsection (a) or (b), the institution or consortium that receives a grant to establish the center--

        ‘(A) shall annually contribute at least $250,000 to the operation and maintenance of the center, except that payment by the institution or consortium of the salary required for transportation-related faculty and staff for a period greater than 90 days may not be counted against that contribution;

        ‘(B) shall have established, as of the date of receipt of the grant, undergraduate or graduate programs in--

          ‘(i) civil engineering;

          ‘(ii) transportation engineering;

          ‘(iii) transportation systems management and operations; or

          ‘(iv) any other field significantly related to surface transportation systems, as determined by the Secretary; and

        ‘(C) not later than 120 days after the date on which the institution or consortium receives notice of selection as a site for the establishment of a university transportation center under this section, shall submit to the Secretary a 6-year program plan for the university transportation center that includes, with respect to the center--

          ‘(i) a description of the purposes of programs to be conducted by the center;

          ‘(ii) a description of the undergraduate and graduate transportation education efforts to be carried out by the center;

          ‘(iii) a description of the nature and scope of research to be conducted by the center;

          ‘(iv) a list of personnel, including the roles and responsibilities of those personnel within the center; and

          ‘(v) a detailed budget, including the amount of contributions by the institution or consortium to the center; and

        ‘(D) shall establish an advisory committee that--

          ‘(i) is composed of a representative from each of the State transportation department of the State in which the institution or consortium is located, the Department of Transportation, and the institution or consortia, as appointed by those respective entities;

          ‘(ii) in accordance with paragraph (2), shall review and approve or disapprove the plan of the institution or consortium under subparagraph (C); and

          ‘(iii) shall, to the maximum extent practicable, ensure that the proposed research to be carried out by the university transportation center will contribute to the national highway research and technology agenda, as periodically updated by the Secretary, in consultation with stakeholders representing the highway community.

      ‘(2) PEER REVIEW-

        ‘(A) IN GENERAL- The Secretary shall require peer review for each report on research carried out using funds made available for this section.

        ‘(B) PURPOSES OF PEER REVIEW- Peer review of a report under this section shall be carried out to evaluate--

          ‘(i) the relevance of the research described in the report with respect to the strategic plan under, and the goals of, this section;

          ‘(ii) the research covered by the report, and to recommend modifications to individual project plans;

          ‘(iii) the results of the research before publication of those results; and

          ‘(iv) the overall outcomes of the research.

        ‘(C) INTERNET AVAILABILITY- Each report under this section that is received by the Secretary shall be published--

          ‘(i) by the Secretary, on the Internet website of the Department of Transportation; and

          ‘(ii) by the University Transportation Center.

      ‘(3) APPROVAL OF PLANS--A plan of an institution or consortium described in paragraph (1)(C) shall not be submitted to the Secretary until such time as the advisory committee established under paragraph (1)(D) reviews and approves the plan.

      ‘(4) FAILURE TO COMPLY- If a recipient of a grant under this subsection fails to submit a program plan acceptable to the Secretary and in accordance with paragraph (1)(C)--

        ‘(A) the recipient shall forfeit the grant and the selection of the recipient as a site for the establishment of a university transportation center; and

        ‘(B) the Secretary shall select a replacement recipient for the forfeited grant.

      ‘(5) APPLICABILITY- This subsection does not apply to any research funds received in accordance with a competitive contract offered and entered into by the Federal Highway Administration.

    ‘(d) OBJECTIVES- Each university transportation center established under subsection (a) or (b) shall carry out--

      ‘(1) undergraduate or graduate education programs that include--

        ‘(A) multidisciplinary coursework; and

        ‘(B) opportunities for students to participate in research;

      ‘(2) basic and applied research, the results and products of which shall be judged by peers or other experts in the field so as to advance the body of knowledge in transportation; and

      ‘(3) an ongoing program of technology transfer that makes research results available to potential users in such form as will enable the results to be implemented, used, or otherwise applied.

    ‘(e) MAINTENANCE OF EFFORT- To be eligible to receive a grant under this section, an applicant shall--

      ‘(1) enter into an agreement with the Secretary to ensure that the applicant will maintain total expenditures from all other sources to establish and operate a university transportation center and related educational and research activities at a level that is at least equal to the average level of those expenditures during the 2 fiscal years before the date on which the grant is provided;

      ‘(2) provide the annual institutional contribution required under subsection (c)(1); and

      ‘(3) submit to the Secretary, in a timely manner, for use by the Secretary in the preparation of the annual research report under section 508(c)(5) of title 23, an annual report on the projects and activities of the university transportation center for which funds are made available under section 2001 of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 that contains, at a minimum, for the fiscal year covered by the report, a description of--

        ‘(A) the goals of the center;

        ‘(B) the educational activities carried out by the center (including a detailed summary of the budget for those educational activities);

        ‘(C) teaching activities of faculty at the center;

        ‘(D) each research project carried out by the center, including--

          ‘(i) the identity and location of each investigator working on a research project;

          ‘(ii) the overall funding amount for each research project (including the amounts expended for the project as of the date of the report);

          ‘(iii) the current schedule for each research project; and

          ‘(iv) the results of each research project through the date of submission of the report, with particular emphasis on results for the fiscal year covered by the report; and

        ‘(E) overall technology transfer and implementation efforts of the center.

    ‘(f) PROGRAM COORDINATION- The Secretary shall--

      ‘(1) coordinate the research, education, training, and technology transfer activities carried out by recipients of grants under this section; and

      ‘(2) establish and operate a clearinghouse for, and disseminate, the results of those activities.

    ‘(g) FUNDING-

      ‘(1) NUMBER AND AMOUNT OF GRANTS- The Secretary shall make the following grants under this subsection:

        ‘(A) GROUP A- For each of fiscal years 2004 through 2009, the Secretary shall make a grant in the amount of $20,000,000 to each of the institutions in group A (as described in subsection (a)(4)(A)).

        ‘(B) GROUP B- The Secretary shall make a grant to each of the institutions in group B (as described in subsection (a)(4)(B)) in the amount of--

          ‘(i) $4,000,000 for each of fiscal years 2004 and 2005; and

          ‘(ii) $6,000,000 for each of fiscal years 2006 and 2007.

        ‘(C) GROUP C- For each of fiscal years 2004 through 2007, the Secretary shall make a grant in the amount of $10,000,000 to each of the institutions in group C (as described in subsection (a)(4)(C)).

        ‘(D) GROUP D- For each of fiscal years 2004 through 2009, the Secretary shall make a grant in the amount of $25,000,000 to each of the institutions in group D (as described in subsection (a)(4)(D)).

        ‘(E) LIMITED GRANTS FOR GROUPS B AND C- For each of fiscal years 2008 and 2009, of the institutions classified in groups B and C (as described in subsection (a)(4)(B)), the Secretary shall select and make a grant in the amount of $10,000,000 to each of not more than 15 institutions.

      ‘(2) USE OF FUNDS--

        ‘(A) IN GENERAL- Of the funds made available for a fiscal year to a university transportation center established under subsection (a) or (b)--

          ‘(i) not less than $250,000 shall be used to establish and maintain new faculty positions for the teaching of undergraduate, transportation-related courses;

          ‘(ii) not more than $500,000 for the fiscal year, or $1,000,000 in the aggregate, may be used to construct or improve transportation-related laboratory facilities; and

          ‘(iii) not more than $300,000 for the fiscal year may be used for student internships of not more than 180 days in duration to enable students to gain experience by working on transportation projects as interns with design or construction firms.

        ‘(B) FACILITIES AND ADMINISTRATION FEE- Not more than 10 percent of any grant made available to a university transportation center (or any institution or consortium that establishes such a center) for a fiscal year may be used to pay to the appropriate nonprofit institution of higher learning any administration and facilities fee (or any similar overhead fee) for the fiscal year.

      ‘(3) LIMITATION ON AVAILABILITY OF FUNDS- Funds made available under this subsection shall remain available for obligation for a period of 2 years after September 30 of the fiscal year for which the funds are authorized.

‘Sec. 511. Multistate corridor operations and management

    ‘(a) IN GENERAL- The Secretary shall encourage multistate cooperative agreements, coalitions, or other arrangements to promote regional cooperation, planning, and shared project implementation for programs and projects to improve transportation system management and operations.

    ‘(b) Interstate Route I-95 Corridor Coalition Transportation Systems Management and Operations-

      ‘(1) IN GENERAL- The Secretary shall make grants under this subsection to States to continue intelligent transportation system management and operations in the Interstate Route I-95 corridor coalition region initiated under the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240).

      ‘(2) FUNDING- Of the amounts made available under section 2001(a)(4) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Secretary shall use to carry out this subsection--

        ‘(A) $8,000,000 for fiscal year 2004;

        ‘(B) $10,000,000 for fiscal year 2005;

        ‘(C) $12,000,000 for fiscal year 2006;

        ‘(D) $12,000,000 for fiscal year 2007;

        ‘(E) $12,000,000 for fiscal year 2008; and

        ‘(F) $12,000,000 for fiscal year 2009.

‘Sec. 512. Transportation analysis simulation system

    ‘(a) CONTINUATION OF TRANSIMS DEVELOPMENT-

      ‘(1) IN GENERAL- The Secretary shall continue the deployment of the advanced transportation model known as the ‘Transportation Analysis Simulation System’ (referred to in this section as ‘TRANSIMS’) developed by the Los Alamos National Laboratory.

      ‘(2) REQUIREMENTS AND CONSIDERATIONS- In carrying out paragraph (1), the Secretary shall--

        ‘(A) further improve TRANSIMS to reduce the cost and complexity of using the TRANSIMS;

        ‘(B) continue development of TRANSIMS for applications to facilitate transportation planning, regulatory compliance, and response to natural disasters and other transportation disruptions; and

        ‘(C) assist State transportation departments and metropolitan planning organizations, especially smaller metropolitan planning organizations, in the implementation of TRANSIMS by providing training and technical assistance.

    ‘(b) ELIGIBLE ACTIVITIES- The Secretary shall use funds made available to carry out this section--

      ‘(1) to further develop TRANSIMS for additional applications, including--

        ‘(A) congestion analyses;

        ‘(B) major investment studies;

        ‘(C) economic impact analyses;

        ‘(D) alternative analyses;

        ‘(E) freight movement studies;

        ‘(F) emergency evacuation studies;

        ‘(G) port studies; and

        ‘(H) airport access studies;

      ‘(2) provide training and technical assistance with respect to the implementation and application of TRANSIMS to States, local governments, and metropolitan planning organizations with responsibility for travel modeling;

      ‘(3) develop methods to simulate the national transportation infrastructure as a single, integrated system for the movement of individuals and goods;

      ‘(4) provide funding to State transportation departments and metropolitan planning organizations for implementation of TRANSIMS.

    ‘(c) ALLOCATION OF FUNDS- Of the funds made available to carry out this section for each fiscal year, not less than 15 percent shall be allocated for activities described in subsection (b)(3).

    ‘(d) FUNDING- Of the amounts made available under section 2001(a) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 for each of fiscal years 2004 through 2009, the Secretary shall use $1,000,000 to carry out this section.

    ‘(e) AVAILABILITY OF FUNDS- Funds made available under this section shall be available to the Secretary through the Transportation Planning, Research, and Development Account of the Office of the Secretary.’.

    (b) OTHER UNIVERSITY FUNDING- No university (other than university transportation centers specified in section 510 of title 23, United States Code (as added by subsection (a)) shall receive funds made available under section 2001 to carry out research unless the university is selected to receive the funds--

      (1) through a competitive process that incorporates merit-based peer review; and

      (2) based on a proposal submitted to the Secretary by the university in response to a request for proposals issued by the Secretary.

    (c) CONFORMING AMENDMENT- Section 5505 of title 49, United States Code, is repealed.

SEC. 2102. STUDY OF DATA COLLECTION AND STATISTICAL ANALYSIS EFFORTS.

    (a) DEFINITIONS- In this section:

      (1) ADMINISTRATION- The term ‘Administration’ means the Federal Highway Administration.

      (2) BOARD- The term ‘Board’ means the Transportation Research Board of the National Academy of Sciences.

      (3) BUREAU- The term ‘Bureau’ means the Bureau of Transportation Statistics.

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

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

    (b) PRIORITY AREAS OF EFFORT-

      (1) STATISTICAL STANDARDS- The Secretary shall direct the Bureau to assume the role of the lead agency in working with other agencies of the Department to establish, by not later the date that is 1 year after the date of enactment of this Act, statistical standards for the Department.

      (2) STATISTICAL ANALYSIS EFFORT-

        (A) IN GENERAL- The Bureau shall provide to the Secretary, on an annual basis, an overview of the level of effort expended on statistical analyses by each agency within the Department.

        (B) DUTY OF AGENCIES- Each agency of the Department shall provide to the Bureau such information as the Bureau may require in carrying out subparagraph (A).

      (3) NATIONAL SECURITY- The Bureau shall--

        (A) conduct a study of the ways in which transportation statistics are and may be used for the purpose of national security; and

        (B) submit to the Transportation Security Administration recommendations for means by which the use of transportation statistics for the purpose of national security may be improved.

      (4) MODERNIZATION- The Bureau shall develop new protocols for adapting data collection and delivery efforts in existence as of the date of enactment of this Act to deliver information in a more timely and frequent fashion.

    (c) STUDY-

      (1) IN GENERAL- Not later than 90 days after the date of enactment of this Act, the Secretary shall provide a grant to, or enter into a cooperative agreement or contract with, the Board for the conduct of a study of the data collection and statistical analysis efforts of the Department with respect to the modes of surface transportation for which funds are made available under this Act.

      (2) PURPOSE- The purpose of the study shall be to provide to the Department information for use by agencies of the Department in providing to surface transportation agencies and individuals engaged in the surface transportation field higher quality, and more relevant and timely, data, statistical analyses, and products.

      (3) CONTENT- The study shall include--

        (A) an examination and analysis of the efforts, analyses, and products (with respect to usefulness and policy relevance) of the Bureau as of the date of the study, as compared with the duties of the Bureau specified in subsections (c) through (f) of section 111 of title 49, United States Code;

        (B) an examination and analysis of data collected by, methods of data collection of, and analyses performed by, agencies within the Department; and

        (C) recommendations relating to--

          (i) the future efforts of the Department in the area of surface transportation with respect to--

            (I) types of data collected;

            (II) methods of data collection;

            (III) types of analyses performed; and

            (IV) products made available by the Secretary to the transportation community and Congress;

          (ii) the means by which the Department may cooperate with State transportation departments to provide technical assistance in the use of data collected by traffic operations centers; and

          (iii) duplication of efforts within the Department, including ways in which--

            (I) the duplication may be reduced or eliminated; and

            (II) each agency of the Department may cooperate with, and complement the efforts of, the others.

      (4) CONSULTATION- In conducting the study, the Board shall consult with such stakeholders, agencies, and other entities as the Board considers to be appropriate.

      (5) REPORT- Not later than 1 year after the date on which a grant is provided, or a cooperative agreement or contract is entered into, for a study under paragraph (1)--

        (A) the Board shall submit to the Secretary, 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 on the results of the study; and

        (B) the results of the study shall be published--

          (i) by the Secretary, on the Internet website of the Department; and

          (ii) by the Board, on the Internet website of the Board.

      (6) IMPLEMENTATION OF RESULTS- The Bureau shall, to the maximum extent practicable, implement any recommendations made with respect to the results of the study under this subsection.

      (7) COMPLIANCE-

        (A) IN GENERAL- The Comptroller General of the United States shall conduct a review of the study under this subsection.

        (B) NONCOMPLIANCE- If the Comptroller General of the United States determines that the Bureau failed to conduct the study under this subsection, the Bureau shall be ineligible to receive funds from the Highway Trust Fund until such time as the Bureau conducts the study under this subsection.

    (d) CONFORMING AMENDMENTS-

      (1) Section 111 of title 49, United States Code, is amended--

        (A) by redesignating subsection (k) as subsection (m);

        (B) by inserting after subsection (j) the following:

    ‘(k) ANNUAL REPORT-

      ‘(1) IN GENERAL- For fiscal year 2005 and each fiscal year thereafter, the Bureau shall prepare and submit to the Secretary an annual report that--

        ‘(A) describes progress made in responding to study recommendations for the fiscal year; and

        ‘(B) summarizes the activities and expenditure of funds by the Bureau for the fiscal year.

      ‘(2) AVAILABILITY- The Bureau shall--

        ‘(A) make the report described in paragraph (1) available to the public; and

        ‘(B) publish the report on the Internet website of the Bureau.

      ‘(3) COMBINATION OF REPORTS- The report required under paragraph (1) may be included in or combined with the Transportation Statistics Annual Report required by subsection (j).

    ‘(l) EXPENDITURE OF FUNDS- Funds from the Highway Trust Fund (other than the Mass Transit Account) that are authorized to be appropriated, and made available, in accordance with section 2001(a)(3) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 shall be used only for the collection and statistical analysis of information relating to surface transportation systems.’; and

        (C) in subsection (m) (as redesignated by subparagraph (A)), by inserting ‘surface transportation’ after ‘sale of’.

      (2) The analysis for chapter 55 of title 49, United States Code, is amended by striking the item relating to section 5505 and inserting the following:

      ‘5505. University transportation centers.’.

SEC. 2103. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.

    (a) ESTABLISHMENT- The Secretary shall establish the centers for surface transportation excellence described in subsection (b) to promote high-quality outcomes in support of strategic national programs and activities, including--

      (1) the environment;

      (2) operations;

      (3) surface transportation safety;

      (4) project finance; and

      (5) asset management.

    (b) CENTERS- The centers for surface transportation excellence referred to in subsection (a) are--

      (1) a Center for Environmental Excellence to provide technical assistance, information sharing of best practices, and training in the use of tools and decision-making processes to assist States in planning and delivering environmentally-sound surface transportation projects;

      (2) a Center for Operations Excellence to provide support for an integrated and coordinated national program for implementing operations in planning and management (including standards development) for the transportation system in the United States;

      (3) a Center for Excellence in Surface Transportation Safety to implement a program of support for State transportation departments, including--

        (A) the maintenance of an Internet site to provide critical information on safety programs;

        (B) the provision of technical assistance to support a lead State transportation department for each of the safety emphasis areas (as identified by the Secretary); and

        (C) the provision of training and education to enhance knowledge of personnel of State transportation departments in support of safety highway goals;

      (4) a Center for Excellence in Project Finance--

        (A) to provide support to State transportation departments in the development of finance plans and project oversight tools; and

        (B) to develop and offer training in state-of-the-art financing methods to advance projects and leverage funds; and

      (5) a Center for Excellence in Asset Management to develop and conduct research, provide training and education, and disseminate information on the benefits and tools for asset management.

    (c) PROGRAM ADMINISTRATION-

      (1) IN GENERAL- Before funds authorized under this section for fiscal years 2005 through 2009 are obligated, the Secretary shall review and approve a multiyear strategic plan to be submitted by each of the centers.

      (2) TIMING- The plan shall be submitted before the beginning of fiscal year 2005 and, subsequently, shall be annually updated.

      (3) CONTENT- The plan shall include--

        (A) a list of research and technical assistance projects and objectives; and

        (B) a description of any other technology transfer activities, including a summary of training efforts.

      (4) COOPERATION AND COMPETITION-

        (A) IN GENERAL- The Secretary shall carry out this section by making grants to, or entering into contracts, cooperative agreements, and other transactions with--

          (i) the National Academy of Sciences;

          (ii) the American Association of State Highway and Transportation Officials;

          (iii) planning organizations;

          (iv) a Federal laboratory;

          (v) a State agency;

          (vi) an authority, association, institution, or organization; or

          (vii) a for-profit or nonprofit corporation.

        (B) COMPETITION; REVIEW- All parties entering into contracts, cooperative agreements, or other transactions with the Secretary, or receiving grants, to perform research or provide technical assistance under this section shall be selected, to the maximum extent practicable--

          (i) on a competitive basis; and

          (ii) on the basis of the results of peer review of proposals submitted to the Secretary.

      (5) NONDUPLICATION- The Secretary shall ensure that activities conducted by each of the centers do not duplicate, and to the maximum extent practicable, are integrated and coordinated with similar activities conducted by the Federal Highway Administration, the local technical assistance program, university transportation centers, and other research efforts supported with funds authorized by this title.

    (d) ALLOCATIONS-

      (1) IN GENERAL- For each of fiscal years 2004 through 2009, of the funds made available under section 2001(a)(1)(A), the Secretary shall set aside $10,000,000 to carry out this section.

      (2) ALLOCATION OF FUNDS- Of the funds made available under paragraph (1)--

        (A) 20 percent shall be allocated to the Center for Environmental Excellence established under subsection (b)(1);

        (B) 30 percent shall be allocated to the Center for Operations Excellence established under subsection (b)(2);

        (C) 20 percent shall be allocated to the Center for Excellence in Surface Transportation Safety established under subsection (b)(3);

        (D) 10 percent shall be allocated to the Center for Excellence in Project Finance established under subsection (b)(4); and

        (E) 20 percent shall be allocated to the Center for Excellence in Asset Management established under subsection (b)(5).

      (3) APPLICABILITY OF TITLE 23- Funds made available under this section shall be available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, except that the Federal share shall be 100 percent.

SEC. 2104. MOTORCYCLE CRASH CAUSATION STUDY GRANTS.

    (a) GRANTS- The Secretary shall provide grants for the purpose of conducting a comprehensive, in-depth motorcycle crash causation study that employs the common international methodology for in-depth motorcycle accident investigation of the Organization for Economic Cooperation and Development.

    (b) FUNDING- Of the amounts made available under section 2001(a)(3), $1,500,000 for each of fiscal years 2004 and 2005 shall be available to carry out this section.

SEC. 2105. TRANSPORTATION TECHNOLOGY INNOVATION AND DEMONSTRATION PROGRAM.

    (a) IN GENERAL- Section 5117(b)(3) of the Transportation Equity Act for the 21st Century (112 Stat. 449; 112 Stat. 864; 115 Stat. 2330) is amended--

      (1) in subparagraph (B)--

        (A) in clause (i)--

          (i) in the first sentence--

            (I) by striking ‘Build an’ and inserting ‘Build or integrate an’; and

            (II) by striking ‘$2,000,000’ and inserting ‘$2,500,000’; and

          (ii) in the second sentence--

            (I) by striking ‘300,000 and that’ and inserting ‘300,000,’; and

            (II) by inserting before the period at the end the following: ‘, and includes major transportation corridors serving that metropolitan area’;

        (B) in clause (ii), by striking all that follows ‘will be’ and inserting ‘reinvested in the intelligent transportation infrastructure system.’;

        (C) by striking clause (iii); and

        (D) by redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively;

      (2) in subparagraph (C)(ii), by striking ‘July 1, 2002’ and inserting ‘the date that is 180 days after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003’;

      (3) in subparagraph (E), by striking clause (ii) and inserting the following:

          ‘(ii) The term ‘follow-on deployment areas’ means the metropolitan areas of Albany, Atlanta, Austin, Baltimore, Birmingham, Boston, Burlington Vermont, Charlotte, Chicago, Cleveland, Columbus, Dallas/Ft. Worth, Denver, Detroit, Greensboro, Hartford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Los Angeles, Louisville, Miami, Milwaukee, Minneapolis-St. Paul, Nashville, New Orleans, New York/Northern New Jersey, Norfolk, Northern Kentucky/Cincinnati, Oklahoma City, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Providence, Raleigh, Richmond, Sacramento, Salt Lake, San Diego, San Francisco, San Jose, St. Louis, Seattle, Tampa, Tucson, Tulsa, and Washington, District of Columbia.’;

      (4) in subparagraph (F)--

        (A) by striking ‘Of the amounts’ and inserting the following:

          ‘(i) THIS ACT- Of the amounts’; and

        (B) by adding at the end the following:

          ‘(ii) SAFETEA- There are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account) $5,000,000 for each fiscal year to carry out this paragraph.

          ‘(iii) AVAILABILITY; NO REDUCTION OR SETASIDE- Amounts made available by this subparagraph--

            ‘(I) shall remain available until expended; and

            ‘(II) shall not be subject to any reduction or setaside.’; and

      (5) by adding at the end the following:

        ‘(H) USE OF RIGHTS-OF-WAY-

          ‘(i) IN GENERAL- An intelligent transportation system project described in paragraph (3) or (6) that involves privately owned intelligent transportation system components and is carried out using funds made available from the Highway Trust Fund shall not be subject to any law (including a regulation) of a State or political subdivision of a State prohibiting or regulating commercial activities in the rights-of-way of a highway for which Federal-aid highway funds have been used for planning, design, construction, or maintenance, if the Secretary determines that such use is in the public interest.

          ‘(ii) EFFECT OF SUBPARAGRAPH- Nothing in this subparagraph affects the authority of a State or political subdivision of a State to regulate highway safety.’.

    (b) CONFORMING AMENDMENT- Section 5204 of the Transportation Equity Act for the 21st Century (112 Stat. 453) is amended by striking subsection (k) (112 Stat. 2681-478).

Subtitle C--Intelligent Transportation System Research

SEC. 2201. INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND TECHNICAL ASSISTANCE PROGRAM.

    (a) IN GENERAL- Chapter 5 of title 23, United States Code (as amended by section 2101), is amended by adding at the end the following:

‘SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND TECHNICAL ASSISTANCE PROGRAM

‘Sec. 521. Finding

    ‘Congress finds that continued investment in architecture and standards development, research, technical assistance for State and local governments, and systems integration is needed to accelerate the rate at which intelligent transportation systems--

      ‘(1) are incorporated into the national surface transportation network; and

      ‘(2) as a result of that incorporation, improve transportation safety and efficiency and reduce costs and negative impacts on communities and the environment.

‘Sec. 522. Goals and purposes

    ‘(a) GOALS- The goals of the intelligent transportation system research and technical assistance program include--

      ‘(1) enhancement of surface transportation efficiency and facilitation of intermodalism and international trade--

        ‘(A) to meet a significant portion of future transportation needs, including public access to employment, goods, and services; and

        ‘(B) to reduce regulatory, financial, and other transaction costs to public agencies and system users;

      ‘(2) the acceleration of the use of intelligent transportation systems to assist in the achievement of national transportation safety goals, including the enhancement of safe operation of motor vehicles and nonmotorized vehicles, with particular emphasis on decreasing the number and severity of collisions;

      ‘(3) protection and enhancement of the natural environment and communities affected by surface transportation, with particular emphasis on assisting State and local governments in achieving national environmental goals;

      ‘(4) accommodation of the needs of all users of surface transportation systems, including--

        ‘(A) operators of commercial vehicles, passenger vehicles, and motorcycles;

        ‘(B) users of public transportation users (with respect to intelligent transportation system user services); and

        ‘(C) individuals with disabilities; and

      ‘(5)(A) improvement of the ability of the United States to respond to emergencies and natural disasters; and

      ‘(B) enhancement of national security and defense mobility.

    ‘(b) PURPOSES- The Secretary shall carry out activities under the intelligent transportation system research and technical assistance program to, at a minimum--

      ‘(1) assist in the development of intelligent transportation system technologies;

      ‘(2) ensure that Federal, State, and local transportation officials have adequate knowledge of intelligent transportation systems for full consideration in the transportation planning process;

      ‘(3) improve regional cooperation, interoperability, and operations for effective intelligent transportation system performance;

      ‘(4) promote the innovative use of private resources;

      ‘(5) assist State transportation departments in developing a workforce capable of developing, operating, and maintaining intelligent transportation systems;

      ‘(6) maintain an updated national ITS architecture and consensus-based standards while ensuring an effective Federal presence in the formulation of domestic and international ITS standards;

      ‘(7) advance commercial vehicle operations components of intelligent transportation systems--

        ‘(A) to improve the safety and productivity of commercial vehicles and drivers; and

        ‘(B) to reduce costs associated with commercial vehicle operations and Federal and State commercial vehicle regulatory requirements;

      ‘(8) evaluate costs and benefits of intelligent transportation systems projects;

      ‘(9) improve, as part of the Archived Data User Service and in cooperation with the Bureau of Transportation Statistics, the collection of surface transportation system condition and performance data through the use of intelligent transportation system technologies; and

      ‘(10) ensure access to transportation information and services by travelers of all ages.

‘Sec. 523. Definitions

    ‘In this subchapter:

      ‘(1) COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS- The term ‘commercial vehicle information systems and networks’ means the information systems and communications networks that support commercial vehicle operations.

      ‘(2) COMMERCIAL VEHICLE OPERATIONS-

        ‘(A) IN GENERAL- The term ‘commercial vehicle operations’ means motor carrier operations and motor vehicle regulatory activities associated with the commercial movement of goods (including hazardous materials) and passengers.

        ‘(B) INCLUSIONS- The term ‘commercial vehicle operations’, with respect to the public sector, includes--

          ‘(i) the issuance of operating credentials;

          ‘(ii) the administration of motor vehicle and fuel taxes; and

          ‘(iii) roadside safety and border crossing inspection and regulatory compliance operations.

      ‘(3) INTELLIGENT TRANSPORTATION INFRASTRUCTURE- The term ‘intelligent transportation infrastructure’ means fully integrated public sector intelligent transportation system components, as defined by the Secretary.

      ‘(4) INTELLIGENT TRANSPORTATION SYSTEM- The term ‘intelligent transportation system’ means electronics, communications, or information processing used singly or in combination to improve the efficiency or safety of a surface transportation system.

      ‘(5) NATIONAL ITS ARCHITECTURE- The term ‘national ITS architecture’ means the common framework for interoperability adopted by the Secretary that defines--

        ‘(A) the functions associated with intelligent transportation system user services;

        ‘(B) the physical entities or subsystems within which the functions reside;

        ‘(C) the data interfaces and information flows between physical subsystems; and

        ‘(D) the communications requirements associated with the information flows.

      ‘(6) STANDARD- The term ‘standard’ means a document that--

        ‘(A) contains technical specifications or other precise criteria for intelligent transportation systems that are to be used consistently as rules, guidelines, or definitions of characteristics so as to ensure that materials, products, processes, and services are fit for their purposes; and

        ‘(B) may--

          ‘(i) support the national ITS architecture; and

          ‘(ii) promote--

            ‘(I) the widespread use and adoption of intelligent transportation system technology as a component of the surface transportation systems of the United States; and

            ‘(II) interoperability among intelligent transportation system technologies implemented throughout the States.

‘Sec. 524. General authorities and requirements

    ‘(a) SCOPE- Subject to this subchapter, the Secretary shall carry out an ongoing intelligent transportation system research program--

      ‘(1) to research, develop, and operationally test intelligent transportation systems; and

      ‘(2) to provide technical assistance in the nationwide application of those systems as a component of the surface transportation systems of the United States.

    ‘(b) POLICY- Intelligent transportation system operational tests and projects funded under this subchapter shall encourage, but not displace, public-private partnerships or private sector investment in those tests and projects.

    ‘(c) COOPERATION WITH GOVERNMENTAL, PRIVATE, AND EDUCATIONAL ENTITIES- The Secretary shall carry out the intelligent transportation system research and technical assistance program in cooperation with--

      ‘(1) State and local governments and other public entities;

      ‘(2) the private sector;

      ‘(3) Federal laboratories (as defined in section 501); and

      ‘(4) colleges and universities, including historically black colleges and universities and other minority institutions of higher education.

    ‘(d) CONSULTATION WITH FEDERAL OFFICIALS- In carrying out the intelligent transportation system research program, the Secretary, as appropriate, shall consult with--

      ‘(1) the Secretary of Commerce;

      ‘(2) the Secretary of the Treasury;

      ‘(3) the Administrator of the Environmental Protection Agency;

      ‘(4) the Director of the National Science Foundation; and

      ‘(5) the Secretary of Homeland Security.

    ‘(e) TECHNICAL ASSISTANCE, TRAINING, AND INFORMATION- The Secretary may provide technical assistance, training, and information to State and local governments seeking to implement, operate, maintain, or evaluate intelligent transportation system technologies and services.

    ‘(f) TRANSPORTATION PLANNING- The Secretary may provide funding to support adequate consideration of transportation system management and operations (including intelligent transportation systems) within metropolitan and statewide transportation planning processes.

    ‘(g) INFORMATION CLEARINGHOUSE- The Secretary shall--

      ‘(1) maintain a repository for technical and safety data collected as a result of federally sponsored projects carried out under this subchapter; and

      ‘(2) on request, make that information (except for proprietary information and data) readily available to all users of the repository at an appropriate cost.

    ‘(h) ADVISORY COMMITTEES-

      ‘(1) IN GENERAL- In carrying out this subchapter, the Secretary--

        ‘(A) may use 1 or more advisory committees; and

        ‘(B) shall designate a public-private organization, the members of which participate in on-going research, planning, standards development, deployment, and marketing of ITS programs, products, and services, and coordinate the development and deployment of intelligent transportation systems in the United States, as the Federal advisory committee authorized by section 5204(h) of the Transportation Equity Act for the 21st Century (112 Stat. 454).

      ‘(2) FUNDING- Of the amount made available to carry out this subchapter, the Secretary may use $1,500,000 for each fiscal year for advisory committees described in paragraph (1).

      ‘(3) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT- Any advisory committee described in paragraph (1) shall be subject to the Federal Advisory Committee Act (5 U.S.C. App.).

    ‘(i) PROCUREMENT METHODS- The Secretary shall develop and provide appropriate technical assistance and guidance to assist State and local agencies in evaluating and selecting appropriate methods of deployment and procurement for intelligent transportation system projects carried out using funds made available from the Highway Trust Fund, including innovative and nontraditional methods such as Information Technology Omnibus Procurement (as developed by the Secretary).

    ‘(j) EVALUATIONS-

      ‘(1) GUIDELINES AND REQUIREMENTS-

        ‘(A) IN GENERAL- The Secretary shall issue revised guidelines and requirements for the evaluation of operational tests and other intelligent transportation system projects carried out under this subchapter.

        ‘(B) OBJECTIVITY AND INDEPENDENCE- The guidelines and requirements issued under subparagraph (A) shall include provisions to ensure the objectivity and independence of the evaluator so as to avoid any real or apparent conflict of interest or potential influence on the outcome by--

          ‘(i) parties to any such test; or

          ‘(ii) any other formal evaluation carried out under this subchapter.

        ‘(C) FUNDING- The guidelines and requirements issued under subparagraph (A) shall establish evaluation funding levels based on the size and scope of each test that ensure adequate evaluation of the results of the test or project.

      ‘(2) SPECIAL RULE- Any survey, questionnaire, or interview that the Secretary considers necessary to carry out the evaluation of any test or program assessment activity under this subchapter shall not be subject to chapter 35 of title 44.

‘Sec. 525. National ITS Program Plan

    ‘(a) IN GENERAL-

      ‘(1) UPDATES- Not later than 1 year after the date of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Secretary, in consultation with interested stakeholders (including State transportation departments) shall develop a 5-year National ITS Program Plan.

      ‘(2) SCOPE- The National ITS Program Plan shall--

        ‘(A) specify the goals, objectives, and milestones for the research and deployment of intelligent transportation systems in the contexts of--

          ‘(i) major metropolitan areas;

          ‘(ii) smaller metropolitan and rural areas; and

          ‘(iii) commercial vehicle operations;

        ‘(B) specify the manner in which specific programs and projects will achieve the goals, objectives, and milestones referred to in subparagraph (A), including consideration of a 5-year timeframe for the goals and objectives;

        ‘(C) identify activities that provide for the dynamic development, testing, and necessary revision of standards and protocols to promote and ensure interoperability in the implementation of intelligent transportation system technologies, including actions taken to establish standards; and

        ‘(D) establish a cooperative process with State and local governments for--

          ‘(i) determining desired surface transportation system performance levels; and

          ‘(ii) developing plans for accelerating the incorporation of specific intelligent transportation system capabilities into surface transportation systems.

    ‘(b) REPORTING- The National ITS Program Plan shall be transmitted and biennially updated as part of the surface transportation research and technology development strategic plan developed under section 508(c).

‘Sec. 526. National ITS architecture and standards

    ‘(a) IN GENERAL-

      ‘(1) DEVELOPMENT, IMPLEMENTATION, AND MAINTENANCE- In accordance with section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783), the Secretary shall develop, implement, and maintain a national ITS architecture and supporting standards and protocols to promote the widespread use and evaluation of intelligent transportation system technology as a component of the surface transportation systems of the United States.

      ‘(2) INTEROPERABILITY AND EFFICIENCY- To the maximum extent practicable, the national ITS architecture shall promote interoperability among, and efficiency of, intelligent transportation system technologies implemented throughout the United States.

      ‘(3) USE OF STANDARDS DEVELOPMENT ORGANIZATIONS- In carrying out this section, the Secretary shall use the services of such standards development organizations as the Secretary determines to be appropriate.

    ‘(b) PROVISIONAL STANDARDS-

      ‘(1) IN GENERAL- If the Secretary finds that the development or selection of an intelligent transportation system standard jeopardizes the timely achievement of the objectives identified in subsection (a), the Secretary may establish a provisional standard--

        ‘(A) after consultation with affected parties; and

        ‘(B) by using, to the maximum extent practicable, the work product of appropriate standards development organizations.

      ‘(2) CRITICAL STANDARDS- If a standard identified by the Secretary as critical has not been adopted and published by the appropriate standards development organization by the date of enactment of this subchapter, the Secretary shall establish a provisional standard--

        ‘(A) after consultation with affected parties; and

        ‘(B) by using, to the maximum extent practicable, the work product of appropriate standards development organizations.

      ‘(3) PERIOD OF EFFECTIVENESS- A provisional standard established under paragraph (1) or (2) shall--

        ‘(A) be published in the Federal Register; and

        ‘(B) remain in effect until such time as the appropriate standards development organization adopts and publishes a standard.

    ‘(c) WAIVER OF REQUIREMENT TO ESTABLISH PROVISIONAL CRITICAL STANDARD-

      ‘(1) IN GENERAL- The Secretary may waive the requirement under subsection (b)(2) to establish a provisional standard if the Secretary determines that additional time would be productive in, or that establishment of a provisional standard would be counterproductive to, the timely achievement of the objectives identified in subsection (a).

      ‘(2) NOTICE- The Secretary shall publish in the Federal Register a notice that describes--

        ‘(A) each standard for which a waiver of the provisional standard requirement is granted under paragraph (1);

        ‘(B) the reasons for and effects of granting the waiver; and

        ‘(C) an estimate as to the date on which the standard is expected to be adopted through a process consistent with section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783).

      ‘(3) WITHDRAWAL OF WAIVER-

        ‘(A) IN GENERAL- The Secretary may withdraw a waiver granted under paragraph (1) at any time.

        ‘(B) NOTICE- On withdrawal of a waiver, the Secretary shall publish in the Federal Register a notice that describes--

          ‘(i) each standard for which the waiver has been withdrawn; and

          ‘(ii) the reasons for withdrawing the waiver.

    ‘(d) CONFORMITY WITH NATIONAL ITS ARCHITECTURE-

      ‘(1) IN GENERAL- Except as provided in paragraphs (2) and (3), the Secretary shall ensure that intelligent transportation system projects carried out using funds made available from the Highway Trust Fund conform to the national ITS architecture, applicable standards or provisional standards, and protocols developed under subsection (a).

      ‘(2) DISCRETION OF SECRETARY- The Secretary may authorize exceptions to paragraph (1) for projects designed to achieve specific research objectives outlined in--

        ‘(A) the National ITS Program Plan under section 525; or

        ‘(B) the surface transportation research and technology development strategic plan developed under section 508(c).

      ‘(3) EXCEPTIONS- Paragraph (1) shall not apply to funds used for operation or maintenance of an intelligent transportation system in existence on the date of enactment of this subchapter.

‘Sec. 527. Commercial vehicle information systems and networks deployment

    ‘(a) DEFINITIONS- In this section:

      ‘(1) COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS- The term ‘commercial vehicle information systems and networks’ means the information systems and communications networks that provide the capability to--

        ‘(A) improve the safety of commercial vehicle operations;

        ‘(B) increase the efficiency of regulatory inspection processes to reduce administrative burdens by advancing technology to facilitate inspections and increase the effectiveness of enforcement efforts;

        ‘(C) advance electronic processing of registration information, driver licensing information, fuel tax information, inspection and crash data, and other safety information;

        ‘(D) enhance the safe passage of commercial vehicles across the United States and across international borders; and

        ‘(E) promote the communication of information among the States and encourage multistate cooperation and corridor development.

      ‘(2) COMMERCIAL VEHICLE OPERATIONS-

        ‘(A) IN GENERAL- The term ‘commercial vehicle operations’ means motor carrier operations and motor vehicle regulatory activities associated with the commercial movement of goods (including hazardous materials) and passengers.

        ‘(B) INCLUSIONS- The term ‘commercial vehicle operations’, with respect to the public sector, includes--

          ‘(i) the issuance of operating credentials;

          ‘(ii) the administration of motor vehicle and fuel taxes; and

          ‘(iii) the administration of roadside safety and border crossing inspection and regulatory compliance operations.

      ‘(3) CORE DEPLOYMENT- The term ‘core deployment’ means the deployment of systems in a State necessary to provide the State with--

        ‘(A) safety information exchange to--

          ‘(i) electronically collect and transmit commercial vehicle and driver inspection data at a majority of inspection sites;

          ‘(ii) connect to the Safety and Fitness Electronic Records system for access to--

            ‘(I) interstate carrier and commercial vehicle data;

            ‘(II) summaries of past safety performance; and

            ‘(III) commercial vehicle credentials information; and

          ‘(iii) exchange carrier data and commercial vehicle safety and credentials information within the State and connect to Safety and Fitness Electronic Records system for access to interstate carrier and commercial vehicle data;

        ‘(B) interstate credentials administration to--

          ‘(i)(I) perform end-to-end (including carrier application) jurisdiction application processing, and credential issuance, of at least the International Registration Plan and International Fuel Tax Agreement credentials; and

          ‘(II) extend the processing to other credentials, including intrastate, titling, oversize or overweight requirements, carrier registration, and hazardous materials;

          ‘(ii) connect to the International Registration Plan and International Fuel Tax Agreement clearinghouses; and

          ‘(iii)(I) have at least 10 percent of the transaction volume handled electronically; and

          ‘(II) have the capability to add more carriers and to extend to branch offices where applicable; and

        ‘(C) roadside electronic screening to electronically screen transponder-equipped commercial vehicles at a minimum of 1 fixed or mobile inspection site and to replicate the screening at other sites.

      ‘(4) EXPANDED DEPLOYMENT- The term ‘expanded deployment’ means the deployment of systems in a State that--

        ‘(A) exceed the requirements of a core deployment of commercial vehicle information systems and networks;

        ‘(B) improve safety and the productivity of commercial vehicle operations; and

        ‘(C) enhance transportation security.

    ‘(b) PROGRAM- The Secretary shall carry out a commercial vehicle information systems and networks program to--

      ‘(1) improve the safety and productivity of commercial vehicles and drivers; and

      ‘(2) reduce costs associated with commercial vehicle operations and Federal and State commercial vehicle regulatory requirements.

    ‘(c) PURPOSE- It is the purpose of the program to advance the technological capability and promote the deployment of intelligent transportation system applications for commercial vehicle operations, including commercial vehicle, commercial driver, and carrier-specific information systems and networks.

    ‘(d) CORE DEPLOYMENT GRANTS-

      ‘(1) IN GENERAL- The Secretary shall make grants to eligible States for the core deployment of commercial vehicle information systems and networks.

      ‘(2) ELIGIBILITY- To be eligible for a core deployment grant under this subsection, a State shall--

        ‘(A) have a commercial vehicle information systems and networks program plan and a top level system design approved by the Secretary;

        ‘(B) certify to the Secretary that the commercial vehicle information systems and networks deployment activities of the State (including hardware procurement, software and system development, and infrastructure modifications)--

          ‘(i) are consistent with the national intelligent transportation systems and commercial vehicle information systems and networks architectures and available standards; and

          ‘(ii) promote interoperability and efficiency, to the maximum extent practicable; and

        ‘(C) agree to execute interoperability tests developed by the Federal Motor Carrier Safety Administration to verify that the systems of the State conform with the national intelligent transportation systems architecture, applicable standards, and protocols for commercial vehicle information systems and networks.

      ‘(3) AMOUNT OF GRANTS- The maximum aggregate amount a State may receive under this subsection for the core deployment of commercial vehicle information systems and networks may not exceed $2,500,000, including funds received under section 2001(a) of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004 for the core deployment of commercial vehicle information systems and networks.

      ‘(4) USE OF FUNDS-

        ‘(A) IN GENERAL- Subject to subparagraph (B), funds from a grant under this subsection may only be used for the core deployment of commercial vehicle information systems and networks.

        ‘(B) REMAINING FUNDS- An eligible State that has completed the core deployment of commercial vehicle information systems and networks, or completed the deployment before core deployment grant funds are expended, may use the remaining core deployment grant funds for the expanded deployment of commercial vehicle information systems and networks in the State.

    ‘(e) EXPANDED DEPLOYMENT GRANTS-

      ‘(1) IN GENERAL- For each fiscal year, from the funds remaining after the Secretary has made core deployment grants under subsection (d), the Secretary may make grants to each eligible State, on request, for the expanded deployment of commercial vehicle information systems and networks.

      ‘(2) ELIGIBILITY- Each State that has completed the core deployment of commercial vehicle information systems and networks shall be eligible for an expanded deployment grant.

      ‘(3) AMOUNT OF GRANTS- Each fiscal year, the Secretary may distribute funds available for expanded deployment grants equally among the eligible States in an amount that does not exceed $1,000,000 for each State.

      ‘(4) USE OF FUNDS- A State may use funds from a grant under this subsection only for the expanded deployment of commercial vehicle information systems and networks.

    ‘(f) FEDERAL SHARE- The Federal share of the cost of a project payable from funds made available to carry out this section shall be the share applicable under section 120(b), as adjusted under subsection (d) of that section.

    ‘(g) FUNDING- Funds authorized to be appropriated to carry out this section shall be available for obligation in the same manner and to the same extent as if the funds were apportioned under chapter 1, except that the funds shall remain available until expended.

‘Sec. 528. Research and development

    ‘(a) IN GENERAL- The Secretary shall carry out a comprehensive program of intelligent transportation system research, development, and operational tests of intelligent vehicles and intelligent infrastructure systems, and other similar activities that are necessary to carry out this subchapter.

    ‘(b) PRIORITY AREAS- Under the program, the Secretary shall give priority to funding projects that--

      ‘(1) assist in the development of an interconnected national intelligent transportation system network that--

        ‘(A) improves the reliability of the surface transportation system;

        ‘(B) supports national security;

        ‘(C) reduces, by at least 20 percent, the cost of manufacturing, deploying, and operating intelligent transportation systems network components;

        ‘(D) could assist in deployment of the Armed Forces in response to a crisis; and

        ‘(E) improves response to, and evacuation of the public during, an emergency situation;

      ‘(2) address traffic management, incident management, transit management, toll collection traveler information, or highway operations systems with goals of--

        ‘(A) reducing metropolitan congestion by 5 percent by 2010;

        ‘(B) ensuring that a national, interoperable 511 system, along with a national traffic information system that includes a user-friendly, comprehensive website, is fully implemented for use by travelers throughout the United States by September 30, 2010; and

        ‘(C)(i) improving incident management response, particularly in rural areas, so that rural emergency response times are reduced by an average of 10 minutes; and

        ‘(ii) subject to subsection (d), improving communication between emergency care providers and trauma centers;

      ‘(3) address traffic management, incident management, transit management, toll collection, traveler information, or highway operations systems;

      ‘(4) conduct operational tests of the integration of at least 3 crash-avoidance technologies in passenger vehicles;

      ‘(5) incorporate human factors research, including the science of the driving process;

      ‘(6) facilitate the integration of intelligent infrastructure, vehicle, and control technologies;

      ‘(7) incorporate research on the impact of environmental, weather, and natural conditions on intelligent transportation systems, including the effects of cold climates;

      ‘(8) as determined by the Secretary, will improve the overall safety performance of vehicles and roadways, including the use of real-time setting of speed limits through the use of speed management technology;

      ‘(9) examine--

        ‘(A) the application to intelligent transportation systems of appropriately modified existing technologies from other industries; and

        ‘(B) the development of new, more robust intelligent transportation systems technologies and instrumentation;

      ‘(10) develop and test communication technologies that--

        ‘(A) are based on an assessment of the needs of officers participating in a motor carrier safety program funded under section 31104 of title 49;

        ‘(B) take into account the effectiveness and adequacy of available technology;

        ‘(C) address systems integration, connectivity, and interoperability challenges; and

        ‘(D) provide the means for officers participating in a motor carrier safety program funded under section 31104 of title 49 to directly assess, without an intermediary, current and accurate safety and regulatory information on motor carriers, commercial motor vehicles and drivers at roadside or mobile inspection facilities;

      ‘(11) enhance intermodal use of intelligent transportation systems for diverse groups, including for emergency and health-related services;

      ‘(12) improve sensing and wireless communications that provide real-time information regarding congestion and incidents;

      ‘(13) develop and test high-accuracy, lane-level, real-time accessible digital map architectures that can be used by intelligent vehicles and intelligent infrastructure elements to facilitate safety and crash avoidance (including establishment of national standards for an open-architecture digital map of all public roads that is compatible with electronic 9-1-1 services);

      ‘(14) encourage the dual-use of intelligent transportation system technologies (such as wireless communications) for--

        ‘(A) emergency services;

        ‘(B) road pricing; and

        ‘(C) local economic development; and

      ‘(15) advance the use of intelligent transportation systems to facilitate high-performance transportation systems, such as through--

        ‘(A) congestion-pricing;

        ‘(B) real-time facility management;

        ‘(C) rapid-emergency response; and

        ‘(D) just-in-time transit.

    ‘(c) OPERATIONAL TESTS- Operational tests conducted under this section shall be designed for--

      ‘(1) the collection of data to permit objective evaluation of the results of the tests;

      ‘(2) the derivation of cost-benefit information that is useful to others contemplating deployment of similar systems; and

      ‘(3) the development and implementation of standards.

    ‘(d) FEDERAL SHARE- The Federal share of the costs of operational tests under subsection (a) shall not exceed 80 percent.

‘Sec. 529. Use of funds

    ‘(a) IN GENERAL- For each fiscal year, not more than $5,000,000 of the funds made available to carry out this subchapter shall be used for intelligent transportation system outreach, public relations, displays, tours, and brochures.

    ‘(b) APPLICABILITY- Subsection (a) shall not apply to intelligent transportation system training, scholarships, or the publication or distribution of research findings, technical guidance, or similar documents.’.

    (b) CONFORMING AMENDMENT- Title V of the Transportation Equity Act for the 21st Century is amended by striking subtitle C (23 U.S.C. 502 note; 112 Stat. 452).

TITLE III--PUBLIC TRANSPORTATION

SEC. 3001. SHORT TITLE.

    This title may be cited as the ‘Federal Public Transportation Act of 2004’.

SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES CODE; UPDATED TERMINOLOGY.

    (a) AMENDMENTS TO TITLE 49- Except as otherwise specifically provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision of law, the reference shall be considered to be made to a section or other provision of title 49, United States Code.

    (b) UPDATED TERMINOLOGY- Except for sections 5301(f), 5302(a)(7), and 5315, chapter 53, including the chapter analysis, is amended by striking ‘mass transportation’ each place it appears and inserting ‘public transportation’.

SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

    (a) DEVELOPMENT AND REVITALIZATION OF PUBLIC TRANSPORTATION SYSTEMS- Section 5301(a) is amended to read as follows:

    ‘(a) DEVELOPMENT AND REVITALIZATION OF PUBLIC TRANSPORTATION SYSTEMS- It is in the economic interest of the United States to foster the development and revitalization of public transportation systems, which are coordinated with other modes of transportation, that maximize the efficient, secure, and safe mobility of individuals and minimize environmental impacts.’.

    (b) GENERAL FINDINGS- Section 5301(b)(1) is amended--

      (1) by striking ‘70 percent’ and inserting ‘two-thirds’; and

      (2) by striking ‘urban areas’ and inserting ‘urbanized areas’.

    (c) PRESERVING THE ENVIRONMENT- Section 5301(e) is amended--

      (1) by striking ‘an urban’ and inserting ‘a’; and

      (2) by striking ‘under sections 5309 and 5310 of this title’.

    (d) GENERAL PURPOSES- Section 5301(f) is amended--

      (1) in paragraph (1)--

        (A) by striking ‘improved mass’ and inserting ‘improved public’; and

        (B) by striking ‘public and private mass transportation companies’ and inserting ‘public transportation companies and private companies engaged in public transportation’;

      (2) in paragraph (2)--

        (A) by striking ‘urban mass’ and inserting ‘public’; and

        (B) by striking ‘public and private mass transportation companies’ and inserting ‘public transportation companies and private companies engaged in public transportation’;

      (3) in paragraph (3)--

        (A) by striking ‘urban mass’ and inserting ‘public’; and

        (B) by striking ‘public or private mass transportation companies’ and inserting ‘public transportation companies or private companies engaged in public transportation’; and

      (4) in paragraph (5), by striking ‘urban mass’ and inserting ‘public’.

SEC. 3004. DEFINITIONS.

    Section 5302(a) is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (G)(i), by inserting ‘including the intercity bus and intercity rail portions of such facility or mall,’ after ‘transportation mall,’;

        (B) in subparagraph (G)(ii), by inserting ‘, except for the intercity bus portion of intermodal facilities or malls,’ after ‘commercial revenue-producing facility’;

        (C) in subparagraph (H)--

          (i) by striking ‘and’ after ‘innovative’ and inserting ‘or’; and

          (ii) by striking ‘or’ after the semicolon at the end;

        (D) in subparagraph (I), by striking the period at the end and inserting a semicolon; and

        (E) by adding at the end the following:

        ‘(J) crime prevention and security, including--

          ‘(i) projects to refine and develop security and emergency response plans; or

          ‘(ii) projects to detect chemical or biological agents in public transportation;

          ‘(K) conducting emergency response drills with public transportation agencies and local first response agencies or security training for public transportation employees, except for expenses relating to operations; or

          ‘(L) 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.’;

      (2) by striking paragraph (16);

      (3) by redesignating paragraphs (8) through (15) as paragraphs (9) through (16), respectively;

      (4) by striking paragraph (7) and inserting the following:

      ‘(7) MASS TRANSPORTATION- The term ‘mass transportation’ means public transportation.

      ‘(8) MOBILITY MANAGEMENT- The term ‘mobility management’ means a short-range planning or management activity or project that does not include operating public transportation services and--

        ‘(A) improves coordination among public transportation providers, including private companies engaged in public transportation;

        ‘(B) addresses customer needs by tailoring public transportation services to specific market niches; or

        ‘(C) manages public transportation demand.’;

      (5) by amending paragraph (11), as redesignated, to read as follows:

      ‘(11) PUBLIC TRANSPORTATION- The term ‘public transportation’ means transportation by a conveyance that provides local regular and continuing general or special transportation to the public, but does not include school bus, charter bus, intercity bus or passenger rail, or sightseeing transportation.’;

      (6) in subparagraphs (A) and (E) of paragraph (16), as redesignated, by striking ‘and’ each place it appears and inserting ‘or’; and

      (7) by amending paragraph (17) to read as follows:

      ‘(17) 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. 3005. METROPOLITAN TRANSPORTATION PLANNING.

    Section 5303 is amended to read as follows:

‘Sec. 5303. Metropolitan transportation planning

    ‘(a) DEFINITIONS- As used in this section and in section 5304, the following definitions shall apply:

      ‘(1) CONSULTATION- A ‘consultation’ occurs when 1 party--

        ‘(A) confers with another identified party in accordance with an established process;

        ‘(B) prior to taking action, considers the views of the other identified party; and

        ‘(C) periodically informs that party about action taken.

      ‘(2) METROPOLITAN PLANNING AREA- The term ‘metropolitan planning area’ means the geographic area determined by agreement between the metropolitan planning organization and the Governor under subsection (d).

      ‘(3) METROPOLITAN PLANNING ORGANIZATION- The term ‘metropolitan planning organization’ means the Policy Board of the organization designated under subsection (c).

      ‘(4) NONMETROPOLITAN AREA- The term ‘nonmetropolitan area’ means any geographic area outside all designated metropolitan planning areas.

      ‘(5) NONMETROPOLITAN LOCAL OFFICIAL- The term ‘nonmetropolitan local official’ means any elected or appointed official of general purpose local government located in a nonmetropolitan area who is responsible for transportation services for such local government.

    ‘(b) GENERAL REQUIREMENTS-

      ‘(1) DEVELOPMENT OF PLANS AND PROGRAMS- To accomplish the objectives described in section 5301(a), each metropolitan planning organization, in cooperation with the State and public transportation operators, shall develop transportation plans and programs for metropolitan planning areas of the State in which it is located.

      ‘(2) CONTENTS- The plans and programs developed under paragraph (1) for each metropolitan planning area shall provide for the development and integrated management and operation of transportation systems and facilities (including pedestrian walkways and bicycle transportation facilities) that will function as an intermodal transportation system for the metropolitan planning area and as an integral part of an intermodal transportation system for the State and the United States.

      ‘(3) PROCESS OF DEVELOPMENT- The process for developing the plans and programs shall provide for consideration of all modes of transportation and shall be continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation problems to be addressed.

      ‘(4) PLANNING AND PROJECT DEVELOPMENT- The metropolitan planning organization, the State Department of Transportation, and the appropriate public transportation provider shall agree upon the approaches that will be used to evaluate alternatives and identify transportation improvements that address the most complex problems and pressing transportation needs in the metropolitan area.

    ‘(c) DESIGNATION OF METROPOLITAN PLANNING ORGANIZATIONS-

      ‘(1) IN GENERAL- To carry out the transportation planning process under this section, a metropolitan planning organization shall be designated for each urbanized area--

        ‘(A) by agreement between the Governor and units of general purpose local government that combined represent not less than 75 percent of the affected population (including the incorporated city or cities named by the Bureau of the Census in designating the urbanized area); or

        ‘(B) in accordance with procedures established by applicable State or local law.

      ‘(2) STRUCTURE- Each metropolitan planning organization designated under paragraph (1) that serves an area identified as a transportation management area shall consist of--

        ‘(A) local elected officials;

        ‘(B) officials of public agencies that administer or operate major modes of transportation in the metropolitan area; and

        ‘(C) appropriate State officials.

      ‘(3) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in this subsection shall be construed to interfere with the authority, under any State law in effect on December 18, 1991, of a public agency with multimodal transportation responsibilities--

        ‘(A) to develop plans and programs for adoption by a metropolitan planning organization; and

        ‘(B) to develop long-range capital plans, coordinate transit services and projects, and carry out other activities pursuant to State law.

      ‘(4) CONTINUING DESIGNATION- The designation of a metropolitan planning organization under this subsection or any other provision of law shall remain in effect until the metropolitan planning organization is redesignated under paragraph (5).

      ‘(5) REDESIGNATION PROCEDURES- A metropolitan planning organization may be redesignated by agreement between the Governor and units of general purpose local government that combined represent not less than 75 percent of the existing planning area population (including the incorporated city or cities named by the Bureau of the Census in designating the urbanized area) as appropriate to carry out this section.

      ‘(6) DESIGNATION OF MORE THAN 1 METROPOLITAN PLANNING ORGANIZATION- More than 1 metropolitan planning organization may be designated within an existing metropolitan planning area only if the Governor and the existing metropolitan planning organization determine that the size and complexity of the existing metropolitan planning area make designation of more than 1 metropolitan planning organization for the area appropriate.

    ‘(d) METROPOLITAN PLANNING AREA BOUNDARIES-

      ‘(1) IN GENERAL- For the purposes of this section, the boundaries of a metropolitan planning area shall be determined by agreement between the metropolitan planning organization and the Governor.

      ‘(2) INCLUDED AREA- Each metropolitan planning area--

        ‘(A) shall encompass at least the existing urbanized area and the contiguous area expected to become urbanized within a 20-year forecast period for the transportation plan; and

        ‘(B) may encompass the entire metropolitan statistical area or consolidated metropolitan statistical area, as defined by the Office of Management and Budget.

      ‘(3) IDENTIFICATION OF NEW URBANIZED AREAS WITHIN EXISTING PLANNING AREA BOUNDARIES- The designation by the Bureau of the Census of new urbanized areas within an existing metropolitan planning area shall not require the redesignation of the existing metropolitan planning organization.

      ‘(4) EXISTING METROPOLITAN PLANNING AREAS IN NONATTAINMENT- Notwithstanding paragraph (2), in the case of an urbanized area designated as a nonattainment area for ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), the boundaries of the metropolitan planning area in existence as of the date of enactment of the Federal Public Transportation Act of 2004 shall be retained, except that the boundaries may be adjusted by agreement of the Governor and affected metropolitan planning organizations in accordance with paragraph (5).

      ‘(5) NEW METROPOLITAN PLANNING AREAS IN NONATTAINMENT- If an urbanized area is designated after the date of enactment of this paragraph in a nonattainment area for ozone or carbon monoxide, the boundaries of the metropolitan planning area--

        ‘(A) shall be established in accordance with subsection (c)(1);

        ‘(B) shall encompass the areas described in paragraph (2)(A);

        ‘(C) may encompass the areas described in paragraph (2)(B); and

        ‘(D) may address any nonattainment identified under the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or carbon monoxide.

    ‘(e) 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) INTERSTATE COMPACTS- States are authorized--

        ‘(A) to enter into agreements or compacts with other States, which agreements or compacts are not in conflict with any law of the United States, for cooperative efforts and mutual assistance in support of activities authorized under this section as the activities pertain to interstate areas and localities within the States; and

        ‘(B) to establish such agencies, joint or otherwise, as the States may determine desirable for making the agreements and compacts effective.

      ‘(3) LAKE TAHOE REGION-

        ‘(A) DEFINITION- In this paragraph, the term ‘Lake Tahoe region’ has the meaning given the term ‘region’ in subdivision (a) of article II of the Tahoe Regional Planning Compact, as set forth in the first section of Public Law 96-551 (94 Stat. 3234).

        ‘(B) TRANSPORTATION PLANNING PROCESS- The Secretary shall--

          ‘(i) establish with the Federal land management agencies that have jurisdiction over land in the Lake Tahoe region a transportation planning process for the region; and

          ‘(ii) coordinate the transportation planning process with the planning process required of State and local governments under this section and section 5304.

        ‘(C) INTERSTATE COMPACT-

          ‘(i) IN GENERAL- Subject to clause (ii) and notwithstanding subsection (c), to carry out the transportation planning process required by this section, California and Nevada may designate a metropolitan planning organization for the Lake Tahoe region, by agreement between the Governor of the State of California, the Governor of the State of Nevada, and units of general purpose local government that combined represent not less than 75 percent of the affected population (including the incorporated city or cities named by the Bureau of the Census in designating the urbanized area), or in accordance with procedures established by applicable State or local law.

          ‘(ii) INVOLVEMENT OF FEDERAL LAND MANAGEMENT AGENCIES-

            ‘(I) REPRESENTATION- The policy board of a metropolitan planning organization designated under clause (i) shall include a representative of each Federal land management agency that has jurisdiction over land in the Lake Tahoe region.

            ‘(II) FUNDING- In addition to funds made available to the metropolitan planning organization under other provisions of title 23 and this chapter, not more than 1 percent of the funds allocated under section 202 of title 23 may be used to carry out the transportation planning process for the Lake Tahoe region under this subparagraph.

        ‘(D) ACTIVITIES- Highway projects included in transportation plans developed under this paragraph--

          ‘(i) shall be selected for funding in a manner that facilitates the participation of the Federal land management agencies that have jurisdiction over land in the Lake Tahoe region; and

          ‘(ii) may, in accordance with chapter 2 of title 23, be funded using funds allocated under section 202 of title 23.

    ‘(f) COORDINATION OF METROPOLITAN PLANNING ORGANIZATIONS-

      ‘(1) NONATTAINMENT AREAS- If more than 1 metropolitan planning organization has authority within a metropolitan area or an area which is designated as a nonattainment area for ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), each metropolitan planning organization shall consult with the other metropolitan planning organizations designated for such area and the State in the coordination of plans required by this section.

      ‘(2) TRANSPORTATION IMPROVEMENTS LOCATED IN MULTIPLE METROPOLITAN PLANNING AREAS- If a transportation improvement funded from the highway trust fund is located within the boundaries of more than 1 metropolitan planning area, the metropolitan planning organizations shall coordinate plans regarding the transportation improvement.

      ‘(3) INTERREGIONAL AND INTERSTATE PROJECT IMPACTS- Planning for National Highway System, commuter rail projects, or other projects with substantial impacts outside a single metropolitan planning area or State shall be coordinated directly with the affected, contiguous, metropolitan planning organizations and States.

      ‘(4) COORDINATION WITH OTHER PLANNING PROCESSES-

        ‘(A) IN GENERAL- The Secretary shall encourage each metropolitan planning organization to coordinate its planning process, to the maximum extent practicable, with those officials responsible for other types of planning activities that are affected by transportation, including State and local land use planning, economic development, environmental protection, airport operations, housing, and freight.

        ‘(B) OTHER CONSIDERATIONS- The metropolitan planning process shall develop transportation plans with due consideration of, and in coordination with, other related planning activities within the metropolitan area. This should include the design and delivery of transportation services within the metropolitan area that are provided by--

          ‘(i) recipients of assistance under this chapter;

          ‘(ii) governmental 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

          ‘(iii) recipients of assistance under section 204 of title 23.

    ‘(g) SCOPE OF PLANNING PROCESS-

      ‘(1) IN GENERAL- The goals and objectives developed through the metropolitan planning process for a metropolitan planning area under this section shall address, in relation to the performance of the metropolitan area transportation systems--

        ‘(A) supporting the economic vitality of the metropolitan area, especially by enabling global competitiveness, productivity, and efficiency, including through services provided by public and private operators;

        ‘(B) increasing the safety of the transportation system for motorized and nonmotorized users;

        ‘(C) increasing the security of the transportation system for motorized and nonmotorized users;

        ‘(D) increasing the accessibility and mobility of people and for freight, including through services provided by public and private operators;

        ‘(E) protecting and enhancing the environment (including the protection of habitat, water quality, and agricultural and forest land, while minimizing invasive species), promoting energy conservation, and promoting consistency between transportation improvements and State and local land use planning and economic development patterns (including minimizing adverse health effects from mobile source air pollution and promoting the linkage of the transportation and development goals of the metropolitan area);

        ‘(F) enhancing the integration and connectivity of the transportation system, across and between modes, for people and freight, including through services provided by public and private operators;

        ‘(G) promoting efficient system management and operation; and

        ‘(H) emphasizing the preservation and efficient use of the existing transportation system, including services provided by public and private operators.

      ‘(2) SELECTION OF FACTORS- After soliciting and considering any relevant public comments, the metropolitan planning organization shall determine which of the factors described in paragraph (1) are most appropriate to consider.

      ‘(3) FAILURE TO CONSIDER FACTORS- The failure to consider any factor specified in paragraph (1) shall not be reviewable by any court under title 23, this title, subchapter II of chapter 5 of title 5, or chapter 7 of title 5 in any matter affecting a transportation plan, a transportation improvement plan, a project or strategy, or the certification of a planning process.

    ‘(h) DEVELOPMENT OF TRANSPORTATION PLAN-

      ‘(1) IN GENERAL-

        ‘(A) REQUIREMENT- Each metropolitan planning organization shall develop a transportation plan for its metropolitan planning area in accordance with this subsection, and update such plan--

          ‘(i) not less frequently than once every 4 years in areas designated as nonattainment, as defined in section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)), and in areas that were nonattainment that have been redesignated as attainment, in accordance with paragraph (3) of such section, with a maintenance plan under section 175A of the Clean Air Act (42 U.S.C. 7505a); or

          ‘(ii) not less frequently than once every 5 years in areas designated as attainment, as defined in section 107(d) of the Clean Air Act.

        ‘(B) COORDINATION FACTORS- In developing the transportation plan under this section, each metropolitan planning organization shall consider the factors described in subsection (f) over a 20-year forecast period.

        ‘(C) FINANCIAL ESTIMATES- For the purpose of developing the transportation plan, the metropolitan planning organization, transit operator, and State shall cooperatively develop estimates of funds that will be available to support plan implementation.

      ‘(2) MITIGATION ACTIVITIES-

        ‘(A) IN GENERAL- A transportation plan under this subsection shall include a discussion of--

          ‘(i) types of potential habitat, hydrological, and environmental mitigation activities that may assist in compensating for loss of habitat, wetland, and other environmental functions; and

          ‘(ii) potential areas to carry out these activities, including a discussion of areas that may have the greatest potential to restore and maintain the habitat types and hydrological or environmental functions affected by the plan.

        ‘(B) CONSULTATION- The discussion described in subparagraph (A) shall be developed in consultation with Federal and State tribal wildlife, land management, and regulatory agencies.

      ‘(3) CONTENTS- A transportation plan under this subsection shall be in a form that the Secretary determines to be appropriate and shall contain--

        ‘(A) an identification of transportation facilities, including major roadways, transit, multimodal and intermodal facilities, intermodal connectors, and other relevant facilities identified by the metropolitan planning organization, which should function as an integrated metropolitan transportation system, emphasizing those facilities that serve important national and regional transportation functions;

        ‘(B) a financial plan that--

          ‘(i) demonstrates how the adopted transportation plan can be implemented;

          ‘(ii) indicates resources from public and private sources that are reasonably expected to be made available to carry out the plan;

          ‘(iii) recommends any additional financing strategies for needed projects and programs; and

          ‘(iv) may include, for illustrative purposes, additional projects that would be included in the adopted transportation plan if approved by the Secretary and reasonable additional resources beyond those identified in the financial plan were available;

        ‘(C) operational and management strategies to improve the performance of existing transportation facilities to relieve vehicular congestion and maximize the safety and mobility of people and goods;

        ‘(D) capital investment and other strategies to preserve the existing metropolitan transportation infrastructure and provide for multimodal capacity increases based on regional priorities and needs; and

        ‘(E) proposed transportation and transit enhancement activities.

      ‘(4) CONSULTATION-

        ‘(A) IN GENERAL- In each metropolitan area, the metropolitan planning organization shall consult, as appropriate, with State and local agencies responsible for land use management, natural resources, environmental protection, conservation, and historic preservation concerning the development of a long-range transportation plan.

        ‘(B) ISSUES- The consultation shall involve--

          ‘(i) comparison of transportation plans with State conservation plans or with maps, if available;

          ‘(ii) comparison of transportation plans to inventories of natural or historic resources, if available; or

          ‘(iii) consideration of areas where wildlife crossing structures may be needed to ensure connectivity between wildlife habitat linkage areas.

      ‘(5) COORDINATION WITH CLEAN AIR ACT AGENCIES- In metropolitan areas in nonattainment for ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), the metropolitan planning organization 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.

      ‘(6) APPROVAL OF THE TRANSPORTATION PLAN- Each transportation plan prepared by a metropolitan planning organization shall be--

        ‘(A) approved by the metropolitan planning organization; and

        ‘(B) submitted to the Governor for information purposes at such time and in such manner as the Secretary may reasonably require.

    ‘(i) PARTICIPATION BY INTERESTED PARTIES-

      ‘(1) DEVELOPMENT OF PARTICIPATION PLAN- Not less frequently than every 4 years, each metropolitan planning organization shall develop and adopt a plan for participation in the process for developing the metropolitan transportation plan and programs by--

        ‘(A) citizens;

        ‘(B) affected public agencies;

        ‘(C) representatives of public transportation employees;

        ‘(D) freight shippers;

        ‘(E) providers of freight transportation services;

        ‘(F) private providers of transportation;

        ‘(G) representatives of users of public transit;

        ‘(H) representatives of users of pedestrian walkways and bicycle transportation facilities; and

        ‘(I) other interested parties.

      ‘(2) CONTENTS OF PARTICIPATION PLAN- The participation plan--

        ‘(A) shall be developed in a manner the Secretary determines to be appropriate;

        ‘(B) shall be developed in consultation with all interested parties; and

        ‘(C) shall provide that all interested parties have reasonable opportunities to comment on--

          ‘(i) the process for developing the transportation plan; and

          ‘(ii) the contents of the transportation plan.

      ‘(3) METHODS- The participation plan shall provide that the metropolitan planning organization shall, to the maximum extent practicable--

        ‘(A) hold any public meetings at convenient and accessible locations and times;

        ‘(B) employ visualization techniques to describe plans; and

        ‘(C) make public information available in electronically accessible format and means, such as the World Wide Web.

      ‘(4) CERTIFICATION- Before the metropolitan planning organizations approve a transportation plan or program, each metropolitan planning organization shall certify that it has complied with the requirements of the participation plan it has adopted.

    ‘(j) TRANSPORTATION IMPROVEMENT PROGRAM-

      ‘(1) DEVELOPMENT AND UPDATE-

        ‘(A) IN GENERAL- In cooperation with the State and affected operators of public transportation, a metropolitan planning organization designated for a metropolitan planning area shall develop a transportation improvement program for the area.

        ‘(B) PARTICIPATION- In developing the transportation improvement program, the metropolitan planning organization, in cooperation with the Governor and any affected operator of public transportation, shall provide an opportunity for participation by interested parties in the development of the program, in accordance with subsection (i).

        ‘(C) UPDATES- The transportation improvement program shall be updated not less than once every 4 years and shall be approved by the metropolitan planning organization and the Governor.

        ‘(D) FUNDING ESTIMATE- In developing the transportation improvement program, the metropolitan planning organization, operators of public transportation, and the State shall cooperatively develop estimates of funds that are reasonably expected to be available to support program implementation.

        ‘(E) PROJECT ADVANCEMENT- Projects listed in the transportation improvement program may be selected for advancement consistent with the project selection requirements.

        ‘(F) MAJOR AMENDMENTS- Major amendments to the list described in subparagraph (E), including the addition, deletion, or concept and scope change of a regionally significant project, may not be advanced without--

          ‘(i) appropriate public involvement;

          ‘(ii) financial planning;

          ‘(iii) transportation conformity analyses; and

          ‘(iv) a finding by the Federal Highway Administration and Federal Transit Administration that the amended plan was produced in a manner consistent with this section.

      ‘(2) INCLUDED PROJECTS-

        ‘(A) PROJECTS UNDER CHAPTER 1 OF TITLE 23 AND THIS CHAPTER- A transportation improvement program developed under this section for a metropolitan area shall include the projects and strategies within the metropolitan area that are proposed for funding under chapter 1 of title 23 and this chapter.

        ‘(B) PROJECTS UNDER CHAPTER 2 OF TITLE 23-

          ‘(i) REGIONALLY SIGNIFICANT PROJECTS- Regionally significant projects proposed for funding under chapter 2 of title 23 shall be identified individually in the metropolitan transportation improvement program.

          ‘(ii) OTHER PROJECTS- Projects proposed for funding under chapter 2 of title 23 that are not regionally significant shall be grouped in 1 line item or identified individually in the metropolitan transportation improvement program.

      ‘(3) SELECTION OF PROJECTS-

        ‘(A) IN GENERAL- Except as otherwise provided under subsection (k)(4), the selection of federally funded projects in metropolitan planning areas shall be carried out, from the approved transportation plan--

          ‘(i) by the State, in the case of projects under chapter 1 of title 23 or section 5308, 5310, 5311, or 5317 of this title;

          ‘(ii) by the designated recipient, in the case of projects under section 5307; and

          ‘(iii) in cooperation with the metropolitan planning organization.

        ‘(B) MODIFICATIONS TO PROJECT PRIORITY- Notwithstanding any other provision of law, a project may be advanced from the transportation improvement program in place of another project in the same transportation improvement program without the approval of the Secretary.

      ‘(4) PUBLICATION REQUIREMENTS-

        ‘(A) PUBLICATION OF TRANSPORTATION IMPROVEMENT PROGRAM- A transportation improvement program involving Federal participation shall be 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 World Wide Web.

        ‘(B) PUBLICATION OF ANNUAL LISTINGS OF PROJECTS- An annual listing of projects, including investments in pedestrian walkways and bicycle transportation facilities, for which Federal funds have been obligated in the preceding 4 years shall be published or otherwise made available for public review by the cooperative effort of the State, transit operator, and the metropolitan planning organization. This listing shall be consistent with the funding categories identified in the transportation improvement program.

        ‘(C) RULEMAKING- Not later than 120 days after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall issue regulations specifying--

          ‘(i) the types of data to be included in the list described in subparagraph (B), including--

            ‘(I) the name, type, purpose, and geocoded location of each project;

            ‘(II) the Federal, State, and local identification numbers assigned to each project;

            ‘(III) amounts obligated and expended on each project, sorted by funding source and transportation mode, and the date on which each obligation was made; and

            ‘(IV) the status of each project; and

          ‘(ii) the media through which the list described in subparagraph (B) will be made available to the public, including written and visual components for each of the projects listed.

    ‘(k) TRANSPORTATION MANAGEMENT AREAS-

      ‘(1) REQUIRED IDENTIFICATION- The Secretary shall identify each urbanized area with a population of more than 200,000 individuals as a transportation management area.

      ‘(2) TRANSPORTATION PLANS AND PROGRAMS- Transportation plans and programs for a metropolitan planning area serving a transportation management area shall be based on a continuing and comprehensive transportation planning process carried out by the metropolitan planning organization in cooperation with the State and transit operators.

      ‘(3) CONGESTION MANAGEMENT SYSTEM-

        ‘(A) IN GENERAL- The transportation planning process under this section shall address congestion management through a process that provides for effective management and operation, based on a cooperatively developed and implemented metropolitan-wide strategy, of new and existing transportation facilities eligible for funding under title 23 and this chapter through the use of travel demand reduction and operational management strategies.

        ‘(B) PHASE-IN SCHEDULE- The Secretary shall establish a phase-in schedule that provides for full compliance with the requirements of this section not later than 1 year after the identification of transportation management areas under paragraph (1).

      ‘(4) SELECTION OF PROJECTS-

        ‘(A) IN GENERAL- All federally funded projects carried out within the boundaries of a metropolitan planning area serving a transportation management area under title 23 (except for projects carried out on the National Highway System and projects carried out under the bridge program or the interstate maintenance program) or under this chapter shall be selected for implementation from the approved transportation improvement program by the metropolitan planning organization designated for the area in consultation with the State and any affected public transit operator.

        ‘(B) NATIONAL HIGHWAY SYSTEM PROJECTS- Projects on the National Highway System carried out within the boundaries of a metropolitan planning area serving a transportation management area and projects carried out within such boundaries under the bridge program or the interstate maintenance program under title 23 shall be selected for implementation from the approved transportation improvement program by the State in cooperation with the metropolitan planning organization designated for the area.

      ‘(5) CERTIFICATION-

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

          ‘(i) ensure that the metropolitan planning process of a metropolitan planning organization serving a transportation management area is being carried out in accordance with Federal law; and

          ‘(ii) subject to subparagraph (B), certify, not less frequently than once every 4 years in nonattainment and maintenance areas (as defined under the Clean Air Act) and not less frequently than once every 5 years in attainment areas (as defined under such Act), that the requirements of this paragraph are met with respect to the metropolitan planning process.

        ‘(B) REQUIREMENTS FOR CERTIFICATION- The Secretary may make the certification under subparagraph (A) if--

          ‘(i) the transportation planning process complies with the requirements of this section and all other applicable Federal law; and

          ‘(ii) a transportation plan and a transportation improvement program for the metropolitan planning area have been approved by the metropolitan planning organization and the Governor.

        ‘(C) PENALTY FOR FAILING TO CERTIFY-

          ‘(i) WITHHOLDING PROJECT FUNDS- If the metropolitan planning process of a metropolitan planning organization serving a transportation management area is not certified, the Secretary may withhold any funds otherwise available to the metropolitan planning area for projects funded under title 23 and this chapter.

          ‘(ii) RESTORATION OF WITHHELD FUNDS- Any funds withheld under clause (i) shall be restored to the metropolitan planning area when the metropolitan planning process is certified by the Secretary.

        ‘(D) REVIEW OF CERTIFICATION- In making a certification under this paragraph, the Secretary shall provide for public involvement appropriate to the metropolitan area under review.

    ‘(l) ABBREVIATED PLANS FOR CERTAIN AREAS-

      ‘(1) IN GENERAL- Subject to paragraph (2), in the case of a metropolitan area not designated as a transportation management area under this section, the Secretary may provide for the development of an abbreviated transportation plan and transportation improvement program for the metropolitan planning area that the Secretary determines is appropriate to achieve the purposes of this section, after considering the complexity of transportation problems in the area.

      ‘(2) NONATTAINMENT AREAS- The Secretary may not permit abbreviated plans for a metropolitan area that is in nonattainment for ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.).

    ‘(m) ADDITIONAL REQUIREMENTS FOR CERTAIN NONATTAINMENT AREAS-

      ‘(1) IN GENERAL- Notwithstanding any other provisions of title 23 or this chapter, Federal funds may not be advanced for transportation management areas classified as nonattainment for ozone or carbon monoxide pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.) for any highway project that will result in a significant increase in carrying capacity for single-occupant vehicles unless the project is addressed through a congestion management process.

      ‘(2) APPLICABILITY- This subsection applies to any nonattainment area within the metropolitan planning area boundaries determined under subsection (d).

    ‘(n) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in this section shall be construed to confer on a metropolitan planning organization the authority to impose legal requirements on any transportation facility, provider, or project that is not eligible under title 23 or this chapter.

    ‘(o) AVAILABILITY OF FUNDS- Funds set aside under section 104(f) of title 23 or section 5308 of this title shall be available to carry out this section.

    ‘(p) CONTINUATION OF CURRENT REVIEW PRACTICE- Any decision by the Secretary concerning a plan or program described in this section 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.).’.

SEC. 3006. STATEWIDE TRANSPORTATION PLANNING.

    Section 5304 is amended to read as follows:

‘Sec. 5304. Statewide transportation planning

    ‘(a) GENERAL REQUIREMENTS-

      ‘(1) DEVELOPMENT OF PLANS AND PROGRAMS- To support the policies described in section 5301(a), each State shall develop a statewide transportation plan (referred to in this section as a ‘Plan’) and a statewide transportation improvement program (referred to in this section as a ‘Program’) for all areas of the State subject to section 5303.

      ‘(2) CONTENTS- The Plan and the Program developed for each State shall provide for the development and integrated management and operation of transportation systems and facilities (including pedestrian walkways and bicycle transportation facilities) that will function as an intermodal transportation system for the State and an integral part of an intermodal transportation system for the United States.

      ‘(3) PROCESS OF DEVELOPMENT- The process for developing the Plan and the Program shall--

        ‘(A) provide for the consideration of all modes of transportation and the policies described in section 5301(a); and

        ‘(B) be continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation problems to be addressed.

    ‘(b) COORDINATION WITH METROPOLITAN PLANNING; STATE IMPLEMENTATION PLAN- Each State shall--

      ‘(1) coordinate planning under this section with--

        ‘(A) the transportation planning activities under section 5303 for metropolitan areas of the State; and

        ‘(B) other related statewide planning activities, including trade and economic development and related multistate planning efforts; and

      ‘(2) develop the transportation portion of the State implementation plan, as required by the Clean Air Act (42 U.S.C. 7401 et seq.).

    ‘(c) INTERSTATE AGREEMENTS- States may enter into agreements or compacts with other States for cooperative efforts and mutual assistance in support of activities authorized under this section related to interstate areas and localities in the States and establishing authorities the States consider desirable for making the agreements and compacts effective.

    ‘(d) SCOPE OF PLANNING PROCESS-

      ‘(1) IN GENERAL- Each State shall carry out a statewide transportation planning process that provides for the consideration of projects, strategies, and implementing projects and services that will--

        ‘(A) support the economic vitality of the United States, the States, nonmetropolitan areas, and metropolitan areas, especially by enabling global competitiveness, 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 people and freight;

        ‘(E) protect and enhance the environment (including the protection of habitat, water quality, and agricultural and forest land, while minimizing invasive species), promote energy conservation, promote consistency between transportation improvements and State and local land use planning and economic development patterns, and improve the quality of life (including minimizing adverse health effects from mobile source air pollution and promoting the linkage of the transportation and development goals of the State);

        ‘(F) enhance the integration and connectivity of the transportation system, across and between modes throughout the State, for people and freight;

        ‘(G) promote efficient system management and operation; and

        ‘(H) emphasize the preservation and efficient use of the existing transportation system.

      ‘(2) SELECTION OF PROJECTS AND STRATEGIES- After soliciting and considering any relevant public comments, the State shall determine which of the projects and strategies described in paragraph (1) are most appropriate.

      ‘(3) MITIGATION ACTIVITIES-

        ‘(A) IN GENERAL- A transportation plan under this subsection shall include a discussion of--

          ‘(i) types of potential habitat, hydrological, and environmental mitigation activities that may assist in compensating for loss of habitat, wetland, and other environmental functions; and

          ‘(ii) potential areas to carry out these activities, including a discussion of areas that may have the greatest potential to restore and maintain the habitat types and hydrological or environmental functions affected by the plan.

        ‘(B) CONSULTATION- The discussion described in subparagraph (A) shall be developed in consultation with Federal and State tribal wildlife, land management, and regulatory agencies.

      ‘(4) FAILURE TO CONSIDER FACTORS- The failure to consider any factor described in paragraph (1) shall not be reviewable by any court under title 23, this title, subchapter II of chapter 5 of title 5, or chapter 7 of title 5 in any matter affecting a Plan, a Program, a project or strategy, or the certification of a planning process.

    ‘(e) ADDITIONAL REQUIREMENTS- In carrying out planning under this section, each State shall consider--

      ‘(1) with respect to nonmetropolitan areas, the concerns of affected local officials with responsibility for transportation;

      ‘(2) the concerns of Indian tribal governments and Federal land management agencies that have jurisdiction over land within the boundaries of the State; and

      ‘(3) coordination of Plans, Programs, and planning activities with related planning activities being carried out outside of metropolitan planning areas and between States.

    ‘(f) STATEWIDE TRANSPORTATION PLAN-

      ‘(1) DEVELOPMENT- Each State shall develop a Plan, with a minimum 20-year forecast period for all areas of the State, that provides for the development and implementation of the intermodal transportation system of the State.

      ‘(2) CONSULTATION WITH GOVERNMENTS-

        ‘(A) METROPOLITAN PLANNING AREAS- The Plan shall be developed for each metropolitan planning area in the State in cooperation with the metropolitan planning organization designated for the metropolitan planning area under section 5303.

        ‘(B) NONMETROPOLITAN AREAS- With respect to nonmetropolitan areas, the statewide transportation plan shall be developed in consultation with affected nonmetropolitan officials with responsibility for transportation. The consultation process shall not require the review or approval of the Secretary.

        ‘(C) INDIAN TRIBAL AREAS- With respect to each area of the State under the jurisdiction of an Indian tribal government, the Plan shall be developed in consultation with the tribal government and the Secretary of the Interior.

        ‘(D) CONSULTATION, COMPARISON, AND CONSIDERATION-

          ‘(i) IN GENERAL- The Plan shall be developed, as appropriate, in consultation with State and local agencies responsible for--

            ‘(I) land use management;

            ‘(II) natural resources;

            ‘(III) environmental protection;

            ‘(IV) conservation; and

            ‘(V) historic preservation.

          ‘(ii) COMPARISON AND CONSIDERATION- Consultation under clause (i) shall involve--

            ‘(I) comparison of transportation plans to State conservation plans or maps, if available;

            ‘(II) comparison of transportation plans to inventories of natural or historic resources, if available; or

            ‘(III) consideration of areas where wildlife crossing structures may be needed to ensure connectivity between wildlife habitat linkage areas.

      ‘(3) PARTICIPATION BY INTERESTED PARTIES- In developing the Plan, the State shall--

        ‘(A) provide citizens, affected public agencies, representatives of public transportation employees, freight shippers, private providers of transportation, representatives of users of public transportation, representatives of users of pedestrian walkways and bicycle transportation facilities, providers of freight transportation services, and other interested parties with a reasonable opportunity to comment on the proposed Plan; and

        ‘(B) to the maximum extent practicable--

          ‘(i) hold any public meetings at convenient and accessible locations and times;

          ‘(ii) employ visualization techniques to describe plans; and

          ‘(iii) make public information available in electronically accessible format and means, such as the World Wide Web.

      ‘(4) MITIGATION ACTIVITIES-

        ‘(A) IN GENERAL- A Plan shall include a discussion of--

          ‘(i) types of potential habitat, hydrological, and environmental mitigation activities that may assist in compensating for loss of habitat, wetlands, and other environmental functions; and

          ‘(ii) potential areas to carry out these activities, including a discussion of areas that may have the greatest potential to restore and maintain the habitat types and hydrological or environmental functions affected by the plan.

        ‘(B) CONSULTATION- The discussion described in subparagraph (A) shall be developed in consultation with Federal and State tribal wildlife, land management, and regulatory agencies.

      ‘(5) TRANSPORTATION STRATEGIES- A Plan shall identify transportation strategies necessary to efficiently serve the mobility needs of people.

      ‘(6) FINANCIAL PLAN- The Plan may include a financial plan that--

        ‘(A) demonstrates how the adopted Plan can be implemented;

        ‘(B) indicates resources from public and private sources that are reasonably expected to be made available to carry out the Plan;

        ‘(C) recommends any additional financing strategies for needed projects and programs; and

        ‘(D) may include, for illustrative purposes, additional projects that would be included in the adopted Plan if reasonable additional resources beyond those identified in the financial plan were available.

      ‘(7) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST- A State shall not be required to select any project from the illustrative list of additional projects described in paragraph (6)(D).

      ‘(8) EXISTING SYSTEM- The Plan should include capital, operations and management strategies, investments, procedures, and other measures to ensure the preservation and most efficient use of the existing transportation system.

      ‘(9) PUBLICATION OF LONG-RANGE TRANSPORTATION PLANS- Each Plan prepared by a State shall be published or otherwise made available, including, to the maximum extent practicable, in electronically accessible formats and means, such as the World Wide Web.

    ‘(g) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM-

      ‘(1) DEVELOPMENT- Each State shall develop a Program for all areas of the State.

      ‘(2) CONSULTATION WITH GOVERNMENTS-

        ‘(A) METROPOLITAN PLANNING AREAS- With respect to each metropolitan planning area in the State, the Program shall be developed in cooperation with the metropolitan planning organization designated for the metropolitan planning area under section 5303.

        ‘(B) NONMETROPOLITAN AREAS- With respect to each nonmetropolitan area in the State, the Program shall be developed in consultation with affected nonmetropolitan local officials with responsibility for transportation. The consultation process shall not require the review or approval of the Secretary.

        ‘(C) INDIAN TRIBAL AREAS- With respect to each area of the State under the jurisdiction of an Indian tribal government, the Program shall be developed in consultation with the tribal government and the Secretary of the Interior.

      ‘(3) PARTICIPATION BY INTERESTED PARTIES- In developing the Program, the State shall provide citizens, affected public agencies, representatives of public transportation employees, freight shippers, private providers of transportation, providers of freight transportation services, representatives of users of public transit, representatives of users of pedestrian walkways and bicycle transportation facilities, and other interested parties with a reasonable opportunity to comment on the proposed Program.

      ‘(4) INCLUDED PROJECTS-

        ‘(A) IN GENERAL- A Program developed under this subsection for a State shall include federally supported surface transportation expenditures within the boundaries of the State.

        ‘(B) LISTING OF PROJECTS-

          ‘(i) IN GENERAL- The Program shall cover a minimum of 4 years, identify projects by year, be fiscally constrained by year, and be updated not less than once every 4 years.

          ‘(ii) PUBLICATION- An annual listing of projects for which funds have been obligated in the preceding 4 years in each metropolitan planning area shall be published or otherwise made available by the cooperative effort of the State, transit operator, and the metropolitan planning organization for public review. The listing shall be consistent with the funding categories identified in each metropolitan transportation improvement program.

      ‘(C) INDIVIDUAL IDENTIFICATION-

          ‘(i) REGIONALLY SIGNIFICANT PROJECTS- Regionally significant projects proposed for funding under chapter 2 of title 23 shall be identified individually in the transportation improvement program.

          ‘(ii) OTHER PROJECTS- Projects proposed for funding under chapter 2 of title 23 that are not determined to be regionally significant shall be grouped in 1 line item or identified individually.

        ‘(D) CONSISTENCY WITH STATEWIDE TRANSPORTATION PLAN- Each project included in the list described in subparagraph (B) shall be--

          ‘(i) consistent with the Plan developed under this section for the State;

          ‘(ii) identical to the project or phase of the project as described in each year of the approved metropolitan transportation improvement program; and

          ‘(iii) in conformance with the applicable State air quality implementation plan developed under the Clean Air Act (42 U.S.C. 7401 et seq.), if the project is carried out in an area designated as nonattainment for ozone or carbon monoxide under that Act.

        ‘(E) REQUIREMENT OF ANTICIPATED FULL FUNDING- The Program shall not include a project, or an identified phase of a project, unless full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.

        ‘(F) FINANCIAL PLAN- The Program may include a financial plan that--

          ‘(i) demonstrates how the approved Program can be implemented;

          ‘(ii) indicates resources from public and private sources that are reasonably expected to be made available to carry out the Program;

          ‘(iii) recommends any additional financing strategies for needed projects and programs; and

          ‘(iv) may include, for illustrative purposes, additional projects that would be included in the adopted transportation plan if reasonable additional resources beyond those identified in the financial plan were available.

        ‘(G) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST-

          ‘(i) NO REQUIRED SELECTION- Notwithstanding subparagraph (F), a State shall not be required to select any project from the illustrative list of additional projects described in subparagraph (F)(iv).

          ‘(ii) REQUIRED APPROVAL BY THE SECRETARY- A State shall not include any project from the illustrative list of additional projects described in subparagraph (F)(iv) in an approved Program without the approval of the Secretary.

        ‘(H) PRIORITIES- The Program shall reflect the priorities for programming and expenditures of funds, including transportation and transit enhancement activities, required by title 23 and this chapter, and transportation control measures included in the State’s air quality implementation plan.

      ‘(5) PROJECT SELECTION FOR AREAS WITH FEWER THAN 50,000 INDIVIDUALS-

        ‘(A) IN GENERAL- Each State, in cooperation with the affected nonmetropolitan local officials with responsibility for transportation, shall select projects to be carried out in areas with fewer than 50,000 individuals from the approved Program (excluding projects carried out under the National Highway System, the bridge program, or the interstate maintenance program under title 23 or sections 5310 and 5311 of this title).

        ‘(B) CERTAIN PROGRAMS- Each State, in consultation with the affected nonmetropolitan local officials with responsibility for transportation, shall select, from the approved Program, projects to be carried out in areas with fewer than 50,000 individuals under the National Highway System, the bridge program, or the Interstate maintenance program under title 23 or under sections 5310 and 5311 of this title.

      ‘(6) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL- A Program developed under this subsection shall be reviewed and based on a current planning finding approved by the Secretary not less frequently than once every 4 years.

      ‘(7) PLANNING FINDING- Not less frequently than once every 4 years, the Secretary shall determine whether the transportation planning process through which Plans and Programs are developed are consistent with this section and section 5303.

      ‘(8) MODIFICATIONS TO PROJECT PRIORITY- Notwithstanding any other provision of law, a project included in the approved Program may be advanced in place of another project in the program without the approval of the Secretary.

    ‘(h) FUNDING- Funds set aside pursuant to section 104(i) of title 23 and 5308 of this title shall be available to carry out this section.

    ‘(i) TREATMENT OF CERTAIN STATE LAWS AS CONGESTION MANAGEMENT SYSTEMS- For purposes of this section and section 5303, State laws, rules, or regulations pertaining to congestion management systems or programs may constitute the congestion management system under section 5303(i)(3) if the Secretary determines that the State laws, rules, or regulations are consistent with, and fulfill the intent of, the purposes of section 5303.

    ‘(j) CONTINUATION OF CURRENT REVIEW PRACTICE- Any decision by the Secretary under this section, regarding a metropolitan or statewide transportation plan or the 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.).’.

SEC. 3007. TRANSPORTATION MANAGEMENT AREAS.

    Section 5305 is repealed.

SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

    Section 5306 is amended--

      (1) in subsection (a)--

        (A) by striking ‘5305 of this title’ and inserting ‘5308’; and

        (B) by inserting ‘, as determined by local policies, criteria, and decision making,’ after ‘feasible’;

      (2) in subsection (b) by striking ‘5303-5305 of this title’ and inserting ‘5303, 5304, and 5308’; and

      (3) by adding at the end the following:

    ‘(c) REGULATIONS- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall issue regulations describing how the requirements under this chapter relating to subsection (a) shall be enforced.’.

SEC. 3009. URBANIZED AREA FORMULA GRANTS.

    (a) TECHNICAL AMENDMENTS- Section 5307 is amended--

      (1) by striking subsections (h), (j) and (k); and

      (2) by redesignating subsections (i), (l), (m), and (n) as subsections (h), (i), (j), and (k), respectively.

    (b) DEFINITIONS- Section 5307(a) is amended--

      (1) by amending paragraph (2)(A) to read as follows:

        ‘(A) an entity designated, in accordance with the planning process under sections 5303, 5304, and 5306, by the chief executive officer of a State, responsible local officials, and publicly owned operators of public transportation, to receive and apportion amounts under sections 5336 and 5337 that are attributable to transportation management areas designated under section 5303; or’; and

      (2) by adding at the end the following:

      ‘(3) SUBRECIPIENT- The term ‘subrecipient’ means a State or local governmental authority, a nonprofit organization, or a private operator of public transportation service that may receive a Federal transit program grant indirectly through a recipient, rather than directly from the Federal Government.’.

    (c) GENERAL AUTHORITY- Section 5307(b) is amended--

      (1) by amending paragraph (1) to read as follows:

      ‘(1) IN GENERAL- The Secretary of Transportation may award grants under this section for--

        ‘(A) capital projects, including associated capital maintenance items;

        ‘(B) planning, including mobility management;

        ‘(C) transit enhancements;

        ‘(D) operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of less than 200,000; and

        ‘(E) operating costs of equipment and facilities for use in public transportation in a portion or portions of an urbanized area with a population of at least 200,000, but not more than 225,000, if--

          ‘(i) the urbanized area includes parts of more than 1 State;

          ‘(ii) the portion of the urbanized area includes only 1 State;

          ‘(iii) the population of the portion of the urbanized area is less than 30,000; and

          ‘(iv) the grants will not be used to provide public transportation outside of the portion of the urbanized area.’;

      (2) by amending paragraph (2) to read as follows:

      ‘(2) Special rule for fiscal years 2004 through 2006--

        ‘(A) INCREASED FLEXIBILITY- The Secretary may award grants under this section, from funds made available to carry out this section for each of the fiscal years 2004 through 2006, to finance the operating cost of equipment and facilities for use in mass transportation in an urbanized area with a population of at least 200,000, as determined by the 2000 decennial census of population if--

          ‘(i) the urbanized area had a population of less than 200,000, as determined by the 1990 decennial census of population;

          ‘(ii) a portion of the urbanized area was a separate urbanized area with a population of less than 200,000, as determined by the 1990 decennial census of population;

          ‘(iii) the area was not designated as an urbanized area, as determined by the 1990 decennial census of population; or

          ‘(iv) a portion of the area was not designated as an urbanized area, as determined by the 1990 decennial census, and received assistance under section 5311 in fiscal year 2002.

        ‘(B) MAXIMUM AMOUNTS IN FISCAL YEAR 2004- In fiscal year 2004--

          ‘(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;

          ‘(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than the amount apportioned to the urbanized area under this section for fiscal year 2003; and

          ‘(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than the amount the portion of the area received under section 5311 for fiscal year 2002.

        ‘(C) MAXIMUM AMOUNTS IN FISCAL YEAR 2005- In fiscal year 2005--

          ‘(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than 50 percent of the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;

          ‘(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than 50 percent of the amount apportioned to the urbanized area under this section for fiscal year 2003; and

          ‘(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less 50 percent of the amount the portion of the area received under section 5311 for fiscal year 2002.

        ‘(D) MAXIMUM AMOUNTS IN FISCAL YEAR 2006- In fiscal year 2006--

          ‘(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than 25 percent of the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;

          ‘(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than 25 percent of the amount apportioned to the urbanized area under this section for fiscal year 2003; and

          ‘(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than 25 percent of the amount the portion of the area received under section 5311 in fiscal year 2002.’; and

      (3) by striking paragraph (4).

    (d) PUBLIC PARTICIPATION REQUIREMENTS- Section 5307(c)(5) is amended by striking ‘section 5336’ and inserting ‘sections 5336 and 5337’.

    (e) GRANT RECIPIENT REQUIREMENTS- Section 5307(d)(1) is amended--

      (1) in subparagraph (A), by inserting ‘, including safety and security aspects of the program’ after ‘program’;

      (2) in subparagraph (E), by striking ‘section’ and all that follows and inserting ‘section, the recipient will comply with sections 5323 and 5325;’;

      (3) in subparagraph (H), by striking ‘sections 5301(a) and (d), 5303-5306, and 5310(a)-(d) of this title’ and inserting ‘subsections (a) and (d) of section 5301 and sections 5303 through 5306’;

      (4) in subparagraph (I) by striking ‘and’ at the end;

      (5) in subparagraph (J), by striking the period at the end and inserting ‘; and’; and

      (6) by adding at the end the following:

        ‘(K) if located in an urbanized area with a population of at least 200,000, will expend not less than 1 percent of the amount the recipient receives each fiscal year under this section for transit enhancement activities described in section 5302(a)(15).’.

    (f) GOVERNMENT’S SHARE OF COSTS- Section 5307(e) is amended--

      (1) by striking the first sentence and inserting the following:

      ‘(1) CAPITAL PROJECTS- A grant for a capital project under this section shall cover 80 percent of the net project cost.’;

      (2) by striking ‘A grant for operating expenses’ and inserting the following:

      ‘(2) OPERATING EXPENSES- A grant for operating expenses’;

      (3) by striking the fourth sentence and inserting the following:

      ‘(3) REMAINING COSTS- The remainder of the net project cost shall be provided in cash from non-Federal sources or revenues derived from the sale of advertising and concessions and amounts received under a service agreement with a State or local social service agency or a private social service organization.’; and

      (4) by adding at the end the following: ‘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 the remainder.’.

    (g) UNDERTAKING PROJECTS IN ADVANCE- Section 5307(g) is amended by striking paragraph (4).

    (h) RELATIONSHIP TO OTHER LAWS- Section 5307(k), as redesignated, is amended to read as follows:

    ‘(k) RELATIONSHIP TO OTHER LAWS-

      ‘(1) APPLICABLE PROVISIONS- Sections 5301, 5302, 5303, 5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 5330, 5331, 5332, 5333 and 5335 apply to this section and to any grant made under this section.

      ‘(2) INAPPLICABLE PROVISIONS-

        ‘(A) IN GENERAL- Except as provided under this section, no other provision of this chapter applies to this section or to a grant made under this section.

        ‘(B) TITLE 5- The provision of assistance under this chapter shall not be construed as bringing within the application of chapter 15 of title 5, any nonsupervisory employee of a public transportation system (or any other agency or entity performing related functions) to which such chapter is otherwise inapplicable.’.

SEC. 3010. PLANNING PROGRAMS.

    (a) IN GENERAL- Section 5308 is amended to read as follows:

‘Sec. 5308. Planning programs

    ‘(a) GRANTS AUTHORIZED- Under criteria established by the Secretary, the Secretary may award grants to States, authorities of the States, metropolitan planning organizations, and local governmental authorities, make agreements with other departments, agencies, or instrumentalities of the Government, or enter into contracts with private nonprofit or for-profit entities to--

      ‘(1) develop transportation plans and programs;

      ‘(2) plan, engineer, design, and evaluate a public transportation project; or

      ‘(3) conduct technical studies relating to public transportation, including--

        ‘(A) studies related to management, planning, operations, capital requirements, and economic feasibility;

        ‘(B) evaluations of previously financed projects;

        ‘(C) peer reviews and exchanges of technical data, information, assistance, and related activities in support of planning and environmental analyses among metropolitan planning organizations and other transportation planners; and

        ‘(D) other similar and related activities preliminary to, and in preparation for, constructing, acquiring, or improving the operation of facilities and equipment.

    ‘(b) PURPOSE- To the extent practicable, the Secretary shall ensure that amounts appropriated pursuant to section 5338 to carry out this section and sections 5303, 5304, and 5306 are used to support balanced and comprehensive transportation planning that considers the relationships among land use and all transportation modes, without regard to the programmatic source of the planning amounts.

    ‘(c) METROPOLITAN PLANNING PROGRAM-

      ‘(1) ALLOCATIONS TO STATES-

        ‘(A) IN GENERAL- The Secretary shall allocate 80 percent of the amount made available under subsection (g)(3)(A) to States to carry out sections 5303 and 5306 in a ratio equal to the population in urbanized areas in each State, divided by the total population in urbanized areas in all States, as shown by the latest available decennial census of population.

        ‘(B) MINIMUM ALLOCATION- Each State shall receive not less than 0.5 percent of the total amount allocated under this paragraph.

      ‘(2) AVAILABILITY OF FUNDS- A State receiving an allocation under paragraph (1) shall promptly distribute such funds to metropolitan planning organizations in the State under a formula--

        ‘(A) developed by the State in cooperation with the metropolitan planning organizations;

        ‘(B) approved by the Secretary of Transportation;

        ‘(C) that considers population in urbanized areas; and

        ‘(D) that provides an appropriate distribution for urbanized areas to carry out the cooperative processes described in this section.

      ‘(3) SUPPLEMENTAL ALLOCATIONS-

        ‘(A) IN GENERAL- The Secretary shall allocate 20 percent of the amount made available under subsection (g)(3)(A) to States to supplement allocations made under paragraph (1) for metropolitan planning organizations.

        ‘(B) ALLOCATION FORMULA- Amounts under this paragraph shall be allocated under a formula that reflects the additional cost of carrying out planning, programming, and project selection responsibilities in complex metropolitan planning areas under sections 5303, 5304, and 5306.

    ‘(d) STATE PLANNING AND RESEARCH PROGRAM-

      ‘(1) IN GENERAL- The Secretary shall allocate amounts made available pursuant to subsection (g)(3)(B) to States for grants and contracts to carry out sections 5304, 5306, 5315, and 5322 so that each State receives an amount equal to the ratio of the population in urbanized areas in that State, divided by the total population in urbanized areas in all States, as shown by the latest available decennial census.

      ‘(2) MINIMUM ALLOCATION- Each State shall receive not less than 0.5 percent of the amount allocated under this subsection.

      ‘(3) REALLOCATION- A State may authorize part of the amount made available under this subsection to be used to supplement amounts available under subsection (c).

    ‘(e) PLANNING CAPACITY BUILDING PROGRAM-

      ‘(1) ESTABLISHMENT- The Secretary shall establish a Planning Capacity Building Program (referred to in this subsection as the ‘Program’) to support and fund innovative practices and enhancements in transportation planning.

      ‘(2) PURPOSE- The purpose of the Program shall be to promote activities that support and strengthen the planning processes required under this section and sections 5303 and 5304.

      ‘(3) ADMINISTRATION- The Program shall be administered by the Federal Transit Administration in cooperation with the Federal Highway Administration.

      ‘(4) USE OF FUNDS-

        ‘(A) IN GENERAL- Appropriations authorized under subsection (g)(1) to carry out this subsection may be used--

          ‘(i) to provide incentive grants to States, metropolitan planning organizations, and public transportation operators; and

          ‘(ii) to conduct research, disseminate information, and provide technical assistance.

        ‘(B) GRANTS, CONTRACTS, COOPERATIVE AGREEMENTS- In carrying out the activities described in subparagraph (A), the Secretary may--

          ‘(i) expend appropriated funds directly; or

          ‘(ii) award grants to, or enter into contracts, cooperative agreements, and other transactions with, a Federal agency, State agency, local governmental authority, association, nonprofit or for-profit entity, or institution of higher education.

    ‘(f) GOVERNMENT’S SHARE OF COSTS- Amounts made available to carry out subsections (c), (d), and (e) may not exceed 80 percent of the costs of the activity unless the Secretary of Transportation determines that it is in the interest of the Government not to require State or local matching funds.

    ‘(g) ALLOCATION OF FUNDS- Of the amounts made available under section 5338(b)(2)(B) for fiscal year 2005 and each fiscal year thereafter to carry out this section--

      ‘(1) $5,000,000 shall be allocated for the Planning Capacity Building Program established under subsection (e);

      ‘(2) $20,000,000 shall be allocated for grants under subsection (a)(2) for alternatives analyses required by section 5309(e)(2)(A); and

      ‘(3) of the remaining amount--

        ‘(A) 82.72 percent shall be allocated for the metropolitan planning program described in subsection (d); and

        ‘(B) 17.28 percent shall be allocated to carry out subsection (b).

    ‘(h) REALLOCATIONS- Any amount allocated under this section that has not been used 3 years after the end of the fiscal year in which the amount was allocated shall be reallocated among the States.’.

    (b) CONFORMING AMENDMENT- The item relating to section 5308 in the table of sections for chapter 53 is amended to read as follows:

      ‘5308. Planning programs.’.

SEC. 3011. CAPITAL INVESTMENT PROGRAM.

    (a) SECTION HEADING- The section heading of section 5309 is amended to read as follows:

‘Sec. 5309. Capital investment grants’.

    (b) GENERAL AUTHORITY- Section 5309(a) is amended--

      (1) in paragraph (1)--

        (A) by striking ‘(1) The Secretary of Transportation may make grants and loans’ and inserting the following:

      ‘(1) GRANTS AUTHORIZED- The Secretary may award grants’;

        (B) in subparagraph (A), by striking ‘alternatives analysis related to the development of systems,’;

        (C) by striking subparagraphs (B), (C), (D), and (G);

        (D) by redesignating subparagraphs (E), (F), and (H) as subparagraphs (B), (C), and (D), respectively;

        (E) in subparagraph (C), as redesignated, by striking the semicolon at the end and inserting ‘, including programs of bus and bus-related projects for assistance to subrecipients which are public agencies, private companies engaged in public transportation, or private nonprofit organizations; and’; and

        (F) in subparagraph (D), as redesignated--

          (i) by striking ‘to support fixed guideway systems’; and

          (ii) by striking ‘dedicated bus and high occupancy vehicle’;

      (2) by amending paragraph (2) to read as follows:

      ‘(2) GRANTEE REQUIREMENTS-

        ‘(A) GRANTEE IN URBANIZED AREA- The Secretary shall require that any grants awarded under this section to a recipient or subrecipient located in an urbanized area shall be subject to all terms, conditions, requirements, and provisions that the Secretary determines to be necessary or appropriate for the purposes of this section, including requirements for the disposition of net increases in the value of real property resulting from the project assisted under this section.

        ‘(B) GRANTEE NOT IN URBANIZED AREA- The Secretary shall require that any grants awarded under this section to a recipient or subrecipient not located in an urbanized area shall be subject to the same terms, conditions, requirements, and provisions as a recipient or subrecipient of assistance under section 5311.

        ‘(C) SUBRECIPIENT- The Secretary shall require that any private, nonprofit organization that is a subrecipient of a grant awarded under this section shall be subject to the same terms, conditions, requirements, and provisions as a subrecipient of assistance under section 5310.

        ‘(D) STATEWIDE TRANSIT PROVIDER GRANTEES- A statewide transit provider that receives a grant under this section shall be subject to the terms, conditions, requirements, and provisions of this section or section 5311, consistent with the scope and purpose of the grant and the location of the project.’; and

      (3) by adding at the end the following:

      ‘(3) 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 findings required under this subsection.’.

    (c) DEFINED TERM- Section 5309(b) is amended to read as follows:

    ‘(b) DEFINED TERM- As used in this section, the term ‘alternatives analysis’ means a study conducted as part of the transportation planning process required under sections 5303 and 5304, which includes--

      ‘(1) an assessment of a wide range of public transportation alternatives designed to address a transportation problem in a corridor or subarea;

      ‘(2) sufficient information to enable the Secretary to make the findings of project justification and local financial commitment required under this section;

      ‘(3) the selection of a locally preferred alternative; and

      ‘(4) the adoption of the locally preferred alternative as part of the long-range transportation plan required under section 5303.’.

    (d) GRANT REQUIREMENTS- Section 5309(d) is amended to read as follows:

    ‘(d) GRANT REQUIREMENTS- The Secretary may not approve a grant for a project under this section unless the Secretary determines that--

      ‘(1) the project is part of an approved transportation plan and program of projects required under sections 5303, 5304, and 5306; and

      ‘(2) the applicant has, or will have--

        ‘(A) the legal, financial, and technical capacity to carry out the project, including safety and security aspects of the project;

        ‘(B) satisfactory continuing control over the use of the equipment or facilities; and

        ‘(C) the capability and willingness to maintain the equipment or facilities.’.

    (e) MAJOR CAPITAL INVESTMENT PROJECTS OF $75,000,000 OR MORE- Section 5309(e) is amended to read as follows:

    ‘(e) MAJOR CAPITAL INVESTMENT PROJECTS OF $75,000,000 OR MORE-

      ‘(1) FULL FUNDING GRANT AGREEMENT- The Secretary shall enter into a full funding grant agreement, based on the evaluations and ratings required under this subsection, with each grantee receiving not less than $75,000,000 under this subsection for a new fixed guideway capital project that--

        ‘(A) is authorized for final design and construction; and

        ‘(B) has been rated as medium, medium-high, or high, in accordance with paragraph (5)(B).

      ‘(2) DETERMINATIONS- The Secretary may not award a grant under this subsection for a new fixed guideway capital project unless the Secretary determines that the proposed project is--

        ‘(A) based on the results of an alternatives analysis and preliminary engineering;

        ‘(B) justified based on a comprehensive review of its mobility improvements, environmental benefits, cost-effectiveness, operating efficiencies, economic development effects, and public transportation supportive land use patterns and policies; and

        ‘(C) supported by an acceptable degree of local financial commitment, including evidence of stable and dependable financing sources to construct the project, and maintain and operate the entire public transportation system, while ensuring that the extent and quality of existing public transportation services are not degraded.

      ‘(3) EVALUATION OF PROJECT JUSTIFICATION- In making the determinations under paragraph (2)(B) for a major capital investment grant, the Secretary shall analyze, evaluate, and consider--

        ‘(A) the results of the alternatives analysis and preliminary engineering for the proposed project;

        ‘(B) the reliability of the forecasts of costs and utilization made by the recipient and the contractors to the recipient;

        ‘(C) the direct and indirect costs of relevant alternatives;

        ‘(D) factors such as--

          ‘(i) congestion relief;

          ‘(ii) improved mobility;

          ‘(iii) air pollution;

          ‘(iv) noise pollution;

          ‘(v) energy consumption; and

          ‘(vi) all associated ancillary and mitigation costs necessary to carry out each alternative analyzed;

        ‘(E) reductions in local infrastructure costs achieved through compact land use development and positive impacts on the capacity, utilization, or longevity of other surface transportation assets and facilities;

        ‘(F) the cost of suburban sprawl;

        ‘(G) the degree to which the project increases the mobility of the public transportation dependent population or promotes economic development;

        ‘(H) population density and current transit ridership in the transportation corridor;

        ‘(I) the technical capability of the grant recipient to construct the project;

        ‘(J) any adjustment to the project justification necessary to reflect differences in local land, construction, and operating costs; and

        ‘(K) other factors that the Secretary determines to be appropriate to carry out this chapter.

      ‘(4) EVALUATION OF LOCAL FINANCIAL COMMITMENT-

        ‘(A) IN GENERAL- In evaluating a project under paragraph (2)(C), the Secretary shall require that--

          ‘(i) the proposed project plan provides for the availability of contingency amounts that the Secretary determines to be reasonable to cover unanticipated cost increases;

          ‘(ii) each proposed local source of capital and operating financing is stable, reliable, and available within the proposed project timetable; and

          ‘(iii) local resources are available to recapitalize and operate the overall proposed public transportation system, including essential feeder bus and other services necessary to achieve the projected ridership levels, while ensuring that the extent and quality of existing public transportation services are not degraded.

        ‘(B) EVALUATION CRITERIA- In assessing the stability, reliability, and availability of proposed sources of local financing under paragraph (2)(C), the Secretary shall consider--

          ‘(i) the reliability of the forecasts of costs and utilization made by the recipient and the contractors to the recipient;

          ‘(ii) existing grant commitments;

          ‘(iii) the degree to which financing sources are dedicated to the proposed purposes;

          ‘(iv) any debt obligation that exists, or is proposed by the recipient, for the proposed project or other public transportation purpose; and

          ‘(v) the extent to which the project has a local financial commitment that exceeds the required non-Federal share of the cost of the project, provided that if the Secretary gives priority to financing projects that include more than the non-Federal share required under subsection (h), the Secretary shall give equal consideration to differences in the fiscal capacity of State and local governments.

      ‘(5) PROJECT ADVANCEMENT AND RATINGS-

        ‘(A) PROJECT ADVANCEMENT- A proposed project under this subsection shall not advance from alternatives analysis to preliminary engineering or from preliminary engineering to final design and construction unless the Secretary determines that the project meets the requirements of this section and there is a reasonable likelihood that the project will continue to meet such requirements.

        ‘(B) RATINGS- In making a determination under subparagraph (A), the Secretary shall evaluate and rate the project on a 5-point scale (high, medium-high, medium, medium-low, or low) based on the results of the alternatives analysis, the project justification criteria, and the degree of local financial commitment, as required under this subsection. In rating the projects, the Secretary shall provide, in addition to the overall project rating, individual ratings for each of the criteria established by regulation.

      ‘(6) APPLICABILITY- This subsection shall not apply to projects for which the Secretary has issued a letter of intent or entered into a full funding grant agreement before the date of enactment of the Federal Public Transportation Act of 2004.

      ‘(7) RULEMAKING- Not later than 240 days after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall issue regulations on the manner by which the Secretary shall evaluate and rate projects based on the results of alternatives analysis, project justification, and local financial commitment, in accordance with this subsection.

      ‘(8) POLICY GUIDANCE-

        ‘(A) PUBLICATION- The Secretary shall publish policy guidance regarding the new starts project review and evaluation process--

          ‘(i) not later than 120 days after the date of enactment of the Federal Public Transportation Act of 2004; and

          ‘(ii) each time significant changes are made by the Secretary to the new starts project review and evaluation process and criteria, but not less frequently than once every 2 years.

        ‘(B) PUBLIC COMMENT AND RESPONSE- The Secretary shall--

          ‘(i) invite public comment to the policy guidance published under subparagraph (A); and

          ‘(ii) publish a response to the comments received under clause (i).’.

    (f) MAJOR CAPITAL INVESTMENT PROJECTS OF LESS THAN $75,000,000- Section 5309(f) is amended to read as follows:

    ‘(f) Major Capital Investment Projects of Less Than $75,000,000-

      ‘(1) PROJECT CONSTRUCTION GRANT AGREEMENT-

        ‘(A) IN GENERAL- The Secretary shall enter into a project construction grant agreement, based on evaluations and ratings required under this subsection, with each grantee receiving less than $75,000,000 under this subsection for a new fixed guideway or corridor improvement capital project that--

          ‘(i) is authorized by law; and

          ‘(ii) has been rated as medium, medium-high, or high, in accordance with paragraph (3)(B).

        ‘(B) CONTENTS-

          ‘(i) IN GENERAL- An agreement under this paragraph shall specify--

            ‘(I) the scope of the project to be constructed;

            ‘(II) the estimated net cost of the project;

            ‘(III) the schedule under which the project shall be constructed;

            ‘(IV) the maximum amount of funding to be obtained under this subsection;

            ‘(V) the proposed schedule for obligation of future Federal grants; and

            ‘(VI) the sources of non-Federal funding.

          ‘(ii) ADDITIONAL FUNDING- The agreement may include a commitment on the part of the Secretary to provide funding for the project in future fiscal years.

        ‘(C) FULL FUNDING GRANT AGREEMENT- An agreement under this paragraph shall be considered a full funding grant agreement for the purposes of subsection (g).

      ‘(2) SELECTION PROCESS-

        ‘(A) SELECTION CRITERIA- The Secretary may not award a grant under this subsection for a proposed project unless the Secretary determines that the project is--

          ‘(i) based on the results of planning and alternatives analysis;

          ‘(ii) justified based on a review of its public transportation supportive land use policies, cost effectiveness, and effect on local economic development; and

          ‘(iii) supported by an acceptable degree of local financial commitment.

        ‘(B) PLANNING AND ALTERNATIVES- In evaluating a project under subparagraph (A)(i), the Secretary shall analyze and consider the results of planning and alternatives analysis for the project.

        ‘(C) PROJECT JUSTIFICATION- In making the determinations under subparagraph (A)(ii), the Secretary shall--

          ‘(i) determine the degree to which local land use policies are supportive of the public transportation project and the degree to which the project is likely to achieve local developmental goals;

          ‘(ii) determine the cost effectiveness of the project at the time of the initiation of revenue service;

          ‘(iii) determine the degree to which the project will have a positive effect on local economic development;

          ‘(iv) consider the reliability of the forecasts of costs and ridership associated with the project; and

          ‘(v) consider other factors that the Secretary determines to be appropriate to carry out this subsection.

        ‘(D) LOCAL FINANCIAL COMMITMENT- For purposes of subparagraph (A)(iii), the Secretary shall require that each proposed local source of capital and operating financing is stable, reliable, and available within the proposed project timetable.

      ‘(3) ADVANCEMENT OF PROJECT TO DEVELOPMENT AND CONSTRUCTION-

        ‘(A) IN GENERAL- A proposed project under this subsection may not advance from the planning and alternatives analysis stage to project development and construction unless--

          ‘(i) the Secretary finds that the project meets the requirements of this subsection and there is a reasonable likelihood that the project will continue to meet such requirements; and

          ‘(ii) the metropolitan planning organization has adopted the locally preferred alternative for the project into the long-range transportation plan.

        ‘(B) EVALUATION- In making the findings under subparagraph (A), the Secretary shall evaluate and rate the project as high, medium-high, medium, medium-low, or low, based on the results of the analysis of the project justification criteria and the degree of local financial commitment, as required under this subsection.

      ‘(4) IMPACT REPORT-

        ‘(A) IN GENERAL- Not later than 240 days after the date of enactment of the Federal Public Transportation Act of 2004, the Federal Transit Administration shall submit a report on the methodology to be used in evaluating the land use and economic development impacts of non-fixed guideway or partial fixed guideway projects to--

          ‘(i) the Committee on Banking, Housing, and Urban Affairs of the Senate; and

          ‘(ii) the Committee on Transportation and Infrastructure of the House of Representatives.

        ‘(B) CONTENTS- The report submitted under subparagraph (A) shall address any qualitative and quantitative differences between fixed guideway and non-fixed guideway projects with respect to land use and economic development impacts.

      ‘(5) REGULATIONS- Not later than 120 days after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall issue regulations establishing an evaluation and rating process for proposed projects under this subsection that is based on the results of project justification and local financial commitment, as required under this subsection.’.

    (g) FULL FUNDING GRANT AGREEMENTS- Section 5309(g)(2) is amended by adding at the end the following:

    ‘(C) BEFORE AND AFTER STUDY-

      ‘(i) IN GENERAL- Each full funding grant agreement shall require the applicant to conduct a study that--

        ‘(I) describes and analyzes the impacts of the new start project on transit services and transit ridership;

        ‘(II) evaluates the consistency of predicted and actual project characteristics and performance; and

        ‘(III) identifies sources of differences between predicted and actual outcomes.

      ‘(ii) INFORMATION COLLECTION AND ANALYSIS PLAN-

        ‘(I) SUBMISSION OF PLAN- Applicants seeking a full funding grant agreement shall submit a complete plan for the collection and analysis of information to identify the impacts of the new start 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) the collection of data on the current transit system regarding transit 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 transit system 2 years after the opening of the new start project, including analogous information on transit service levels and ridership patterns and information on the as-built scope and capital costs of the new start project; and

          ‘(dd) analysis of the consistency of predicted project characteristics with the after data.

    ‘(D) COLLECTION OF DATA ON CURRENT SYSTEM- To be eligible for a full funding grant agreement, recipients shall have collected data on the current system, according to the plan required, before the beginning of construction of the proposed new start project. Collection of this data shall be included in the full funding grant agreement as an eligible activity.

    ‘(E) PUBLIC PRIVATE PARTNERSHIP PILOT PROGRAM-

      ‘(i) AUTHORIZATION- The Secretary may establish a pilot program to demonstrate the advantages of public-private partnerships for certain fixed guideway systems development projects.

      ‘(ii) IDENTIFICATION OF QUALIFIED PROJECTS- The Secretary shall identify qualified public-private partnership projects as permitted by applicable State and local enabling laws and work with project sponsors to enhance project delivery and reduce overall costs.’.

    (h) FEDERAL SHARE OF NET PROJECT COST- Section 5309(h) is amended to read as follows:

    ‘(h) FEDERAL SHARE OF ADJUSTED NET PROJECT COST-

      ‘(1) IN GENERAL- The Secretary shall estimate the net project cost based on engineering studies, studies of economic feasibility, and information on the expected use of equipment or facilities.

      ‘(2) ADJUSTMENT FOR COMPLETION UNDER BUDGET- The Secretary may adjust the final net project cost of a major capital investment project evaluated under subsections (e) and (f) 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 FEDERAL SHARE-

        ‘(A) IN GENERAL- A grant for the project shall be for 80 percent of the net project cost, or the net project cost as adjusted under paragraph (2), unless the grant recipient requests a lower grant percentage.

        ‘(B) EXCEPTIONS- The Secretary may provide a higher grant percentage than requested by the grant recipient if--

          ‘(i) the Secretary determines that the net project cost of the project is not more than 10 percent higher than the net project cost estimated at the time the project was approved for advancement into preliminary engineering; and

          ‘(ii) 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 preliminary engineering.

      ‘(4) OTHER SOURCES- The costs not funded by a grant under this section may be funded from--

        ‘(A) an undistributed cash surplus;

        ‘(B) a replacement or depreciation cash fund or reserve; or

        ‘(C) new capital, including any Federal funds that are eligible to be expended for transportation.

      ‘(5) PLANNED EXTENSION TO FIXED GUIDEWAY SYSTEM- In addition to amounts allowed under paragraph (1), a planned extension to a fixed guideway system may include the cost of rolling stock previously purchased if the Secretary determines that only non-Federal funds were used and that the purchase was made for use on the extension. A refund or reduction of the costs not funded by a grant under this section may be made only if a refund of a proportional amount of the grant is made at the same time.

      ‘(6) EXCEPTION- 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 amounts allowed under paragraph (4).’.

    (i) LOAN PROVISIONS AND FISCAL CAPACITY CONSIDERATIONS- Section 5309 is amended--

      (1) by striking subsections (i), (j), (k), and (l);

      (2) by redesignating subsections (m) and (n) as subsections (i) and (j), respectively;

      (3) by striking subsection (o) (as added by section 3009(i) of the Federal Transit Act of 1998); and

      (4) by redesignating subsections (o) and (p) as subsections (k) and (l), respectively.

    (j) ALLOCATING AMOUNTS- Section 5309(i), as redesignated, is amended to read as follows:

    ‘(i) ALLOCATING AMOUNTS-

      ‘(1) FISCAL YEAR 2004- Of the amounts made available or appropriated for fiscal year 2004 under section 5338(a)(3)--

        ‘(A) $1,315,983,615 shall be allocated for projects of not less than $75,000,000 for major capital projects for new fixed guideway systems and extensions of such systems under subsection (e) and projects for new fixed guideway or corridor improvement capital projects under subsection (f);

        ‘(B) $1,199,387,615 shall be allocated for capital projects for fixed guideway modernization; and

        ‘(C) $603,617,520 shall be allocated for capital projects for buses and bus-related equipment and facilities.

      ‘(2) IN GENERAL- Of the amounts made available or appropriated for fiscal year 2005 and each fiscal year thereafter for grants under this section pursuant to subsections (b)(4) and (c) of section 5338--

        ‘(A) the amounts appropriated under section 5338(c) shall be allocated for major capital projects for--

          ‘(i) new fixed guideway systems and extensions of not less than $75,000,000, in accordance with subsection (e); and

          ‘(ii) projects for new fixed guideway or corridor improvement capital projects, in accordance with subsection (f); and

        ‘(B) the amounts made available under section 5338(b)(4) shall be allocated for capital projects for buses and bus-related equipment and facilities.

      ‘(3) FIXED GUIDEWAY MODERNIZATION- The amounts made available for fixed guideway modernization under section 5338(b)(2)(K) for fiscal year 2005 and each fiscal year thereafter shall be allocated in accordance with section 5337.

      ‘(4) PRELIMINARY ENGINEERING- Not more that 8 percent of the allocation described in paragraphs (1)(A) and (2)(A) may be expended on preliminary engineering.

      ‘(5) FUNDING FOR FERRY BOATS- Of the amounts described in paragraphs (1)(A) and (2)(A), $10,400,000 shall be available in each of the fiscal years 2004 through 2009 for capital projects in Alaska and Hawaii for new fixed guideway systems and extension projects utilizing ferry boats, ferry boat terminals, or approaches to ferry boat terminals.

      ‘(6) BUS AND BUS FACILITY GRANTS-

        ‘(A) CONSIDERATIONS- In making grants under paragraphs (1)(C) and (2)(B), the Secretary shall consider the age and condition of buses, bus fleets, related equipment, and bus-related facilities.

        ‘(B) PROJECTS NOT IN URBANIZED AREAS- Of the amounts made available under paragraphs (1)(C) and (2)(B), not less than 5.5 percent shall be available in each fiscal year for projects that are not in urbanized areas.

        ‘(C) INTERMODAL TERMINALS- Of the amounts made available under paragraphs (1)(C) and (2)(B), not less than $75,000,000 shall be available in each fiscal year for intermodal terminal projects, including the intercity bus portion of such projects.’.

    (k) REPORTS- Section 5309 is amended by inserting at the end the following:

    ‘(m) REPORTS-

      ‘(1) ANNUAL REPORT ON FUNDING RECOMMENDATIONS-

        ‘(A) IN GENERAL- Not later than the first Monday of February of each year, the Secretary shall submit a report on funding recommendations to--

          ‘(i) the Committee on Transportation and Infrastructure of the House of Representatives;

          ‘(ii) the Committee on Banking, Housing, and Urban Affairs of the Senate;

          ‘(iii) the Subcommittee on Transportation of the Committee on Appropriations of the House of Representatives; and

          ‘(iv) the Subcommittee on Transportation of the Committee on Appropriations of the Senate.

        ‘(B) CONTENTS- The report submitted under subparagraph (A) shall contain--

          ‘(i) a proposal on the allocation of amounts to finance grants for capital investment projects among grant applicants;

          ‘(ii) a recommendation of projects to be funded based on--

            ‘(I) the evaluations and ratings determined under subsection (e) and (f); and

            ‘(II) existing commitments and anticipated funding levels for the subsequent 3 fiscal years; and

          ‘(iii) detailed ratings and evaluations on each project recommended for funding.

      ‘(2) TRIENNIAL REPORTS ON PROJECT RATINGS-

        ‘(A) IN GENERAL- Not later than the first Monday of February, the first Monday of June, and the first Monday of October of each year, the Secretary shall submit a report on project ratings to--

          ‘(i) the Committee on Transportation and Infrastructure of the House of Representatives;

          ‘(ii) the Committee on Banking, Housing, and Urban Affairs of the Senate;

          ‘(iii) the Subcommittee on Transportation of the Committee on Appropriations of the House of Representatives; and

          ‘(iv) the Subcommittee on Transportation of the Committee on Appropriations of the Senate.

        ‘(B) CONTENTS- Each report submitted under subparagraph (A) shall contain--

          ‘(i) a summary of the ratings of all capital investment projects for which funding was requested under this section;

          ‘(ii) detailed ratings and evaluations on the project of each applicant that had significant changes to the finance or project proposal or has completed alternatives analysis or preliminary engineering since the date of the latest report; and

          ‘(iii) all relevant information supporting the evaluation and rating of each updated project, including a summary of the financial plan of each updated project.

      ‘(3) BEFORE AND AFTER STUDY REPORTS- Not later than the first Monday of August of each year, the Secretary shall submit a report containing a summary of the results of the studies conducted under subsection (g)(2) to--

        ‘(A) the Committee on Transportation and Infrastructure of the House of Representatives;

        ‘(B) the Committee on Banking, Housing, and Urban Affairs of the Senate;

        ‘(C) the Subcommittee on Transportation of the Committee on Appropriations of the House of Representatives; and

        ‘(D) the Subcommittee on Transportation of the Committee on Appropriations of the Senate.

      ‘(4) CONTRACTOR PERFORMANCE ASSESSMENT REPORT-

        ‘(A) IN GENERAL- Not later than 180 days after the enactment of the Federal Public Transportation Act of 2004, and each year thereafter, the Secretary shall submit a report analyzing the consistency and accuracy of cost and ridership estimates made by each contractor to public transportation agencies developing major investment projects to the committees and subcommittees listed under paragraph (3).

        ‘(B) CONTENTS- The report submitted under subparagraph (A) shall compare the cost and ridership estimates made at the time projects are approved for entrance into preliminary engineering with--

          ‘(i) estimates made at the time projects are approved for entrance into final design;

          ‘(ii) costs and ridership when the project commences revenue operation; and

          ‘(iii) costs and ridership when the project has been in operation for 2 years.

      ‘(5) ANNUAL GENERAL ACCOUNTING OFFICE REVIEW-

        ‘(A) REVIEW- The Comptroller General of the United States shall conduct an annual review of the processes and procedures for evaluating and rating projects and recommending projects and the Secretary’s implementation of such processes and procedures.

        ‘(B) REPORT- Not later than 90 days after the submission of each report required under paragraph (1), the Comptroller General shall submit a report to Congress that summarizes the results of the review conducted under subparagraph (A).

      ‘(6) CONTRACTOR PERFORMANCE INCENTIVE REPORT- Not later than 180 days after the enactment of the Federal Public Transportation Act of 2004, the Secretary shall submit a report to the committees and subcommittees listed under paragraph (3) on the suitability of allowing contractors to public transportation agencies that undertake major capital investments under this section to receive performance incentive awards if a project is completed for less than the original estimated cost.’.

SEC. 3012. NEW FREEDOM FOR ELDERLY PERSONS AND PERSONS WITH DISABILITIES.

    (a) IN GENERAL- Section 5310 is amended to read as follows:

‘Sec. 5310. New freedom for elderly persons and persons with disabilities

    ‘(a) GENERAL AUTHORITY-

      ‘(1) AUTHORIZATION- The Secretary may award grants to a State for capital public transportation projects that are planned, designed, and carried out to meet the needs of elderly individuals and individuals with disabilities, with priority given to the needs of these individuals to access necessary health care.

      ‘(2) ACQUISITION OF PUBLIC TRANSPORTATION SERVICES- A capital public transportation project under this section may include acquiring public transportation services as an eligible capital expense.

      ‘(3) ADMINISTRATIVE COSTS- A State may use not more than 15 percent of the amounts received under this section to administer, plan, and provide technical assistance for a project funded under this section.

    ‘(b) ALLOTMENTS AMONG STATES-

      ‘(1) IN GENERAL- From amounts made available or appropriated in each fiscal year under subsections (a)(1)(C)(iv) and (b)(2)(D) of section 5338 for grants under this section, the Secretary shall allot amounts to each State under a formula based on the number of elderly individuals and individuals with disabilities in each State.

      ‘(2) TRANSFER OF FUNDS- Any funds allotted to a State under paragraph (1) may be transferred by the State to the apportionments made under sections 5311(c) and 5336 if such funds are only used for eligible projects selected under this section.

      ‘(3) REALLOCATION OF FUNDS- A State receiving a grant under this section may reallocate such grant funds to--

        ‘(A) a private nonprofit organization;

        ‘(B) a public transportation agency or authority; or

        ‘(C) a governmental authority that--

          ‘(i) has been approved by the State to coordinate services for elderly individuals and individuals with disabilities;

          ‘(ii) certifies that nonprofit organizations are not readily available in the area that can provide the services described under this subsection; or

          ‘(iii) will provide services to persons with disabilities that exceed those services required by the Americans with Disabilities Act.

    ‘(c) FEDERAL SHARE-

      ‘(1) MAXIMUM-

        ‘(A) IN GENERAL- A grant for a capital project under this section may not exceed 80 percent of the net capital costs of the project, as determined by the Secretary.

        ‘(B) EXCEPTION- A State described in section 120(d) of title 23 shall receive an increased Federal share in accordance with the formula under that section.

      ‘(2) REMAINING COSTS- The costs of a capital project under this section that are not funded through a grant under this section--

        ‘(A) may be funded 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 to or made available to any Federal agency (other than the Department of Transportation, except for Federal Lands Highway funds) that are eligible to be expended for transportation.

      ‘(3) EXCEPTION- For purposes of paragraph (2), 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.

    ‘(d) GRANT REQUIREMENTS-

      ‘(1) IN GENERAL- A grant recipient under this section shall be subject to the requirements of a grant recipient under section 5307 to the extent the Secretary determines to be appropriate.

      ‘(2) CERTIFICATION REQUIREMENTS-

        ‘(A) FUND TRANSFERS- A grant recipient under this section that transfers funds to a project funded under section 5336 in accordance with subsection (b)(2) shall certify that the project for which the funds are requested has been coordinated with private nonprofit providers of services under this section.

        ‘(B) PROJECT SELECTION AND PLAN DEVELOPMENT- Each grant recipient under this section shall certify that--

          ‘(i) the projects selected were derived from a locally developed, coordinated public transit-human services transportation plan; and

          ‘(ii) the plan was developed through a process that included representatives of public, private, and nonprofit transportation and human services providers and participation by the public.

        ‘(C) ALLOCATIONS TO SUBRECIPIENTS- Each grant recipient under this section shall certify that allocations of the grant to subrecipients, if any, are distributed on a fair and equitable basis.

    ‘(e) STATE PROGRAM OF PROJECTS-

      ‘(1) SUBMISSION TO SECRETARY- Each State shall annually submit a program of transportation projects to the Secretary for approval with an assurance that the program provides for maximum feasible coordination between transportation services funded under this section and transportation services assisted by other Federal sources.

      ‘(2) USE OF FUNDS- Each State may use amounts made available to carry out this section to provide transportation services for elderly individuals and individuals with disabilities if such services are included in an approved State program of projects.

    ‘(f) LEASING VEHICLES- Vehicles acquired under this section may be leased to local governmental authorities to improve transportation services designed to meet the needs of elderly individuals and individuals with disabilities.

    ‘(g) MEAL DELIVERY FOR HOMEBOUND INDIVIDUALS- Public transportation service providers receiving 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.

    ‘(h) TRANSFERS OF FACILITIES AND EQUIPMENT- With the consent of the recipient in possession of a facility or equipment acquired with a grant 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.

    ‘(i) FARES NOT REQUIRED- This section does not require that elderly individuals and individuals with disabilities be charged a fare.’.

    (b) CONFORMING AMENDMENT- The item relating to section 5310 in the table of sections for chapter 53 is amended to read as follows:

      ‘5310. New freedom for elderly persons and persons with disabilities.’.

SEC. 3013. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

    (a) DEFINITIONS- Section 5311(a) is amended to read as follows:

    ‘(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 Federal Government.

      ‘(2) SUBRECIPIENT- The term ‘subrecipient’ means a State or local governmental authority, a nonprofit organization, or a private operator of public transportation or intercity bus service that receives Federal transit program grant funds indirectly through a recipient.’.

    (b) GENERAL AUTHORITY- Section 5311(b) is amended--

      (1) by amending paragraph (1) to read as follows:

      ‘(1) GRANTS AUTHORIZED- Except as provided under paragraph (2), the Secretary may award grants under this section to recipients located in areas other than urbanized areas for--

        ‘(A) public transportation capital projects;

        ‘(B) operating costs of equipment and facilities for use in public transportation; and

        ‘(C) the acquisition of public transportation services.’;

      (2) by redesignating paragraph (2) as paragraph (3);

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

      ‘(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 annually submit the program described in subparagraph (A) to the Secretary.

        ‘(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; 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.’;

      (4) in paragraph (3), as redesignated--

        (A) by striking ‘(3) The Secretary of Transportation’ and inserting the following:

      ‘(3) RURAL TRANSPORTATION ASSISTANCE PROGRAM-

        ‘(A) ESTABLISHMENT- The Secretary’;

        (B) by striking ‘make’ and inserting ‘use not more than 2 percent of the amount made available to carry out this section to award’; and

        (C) by adding at the end the following:

        ‘(B) DATA COLLECTION-

          ‘(i) REPORT- Each grantee 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--

            ‘(I) total annual revenue;

            ‘(II) sources of revenue;

            ‘(III) total annual operating costs;

            ‘(IV) total annual capital costs;

            ‘(V) fleet size and type, and related facilities;

            ‘(VI) revenue vehicle miles; and

            ‘(VII) ridership.’; and

      (5) by adding after paragraph (3) the following:

      ‘(4) Of the amount made available to carry out paragraph (3)--

        ‘(A) not more than 15 percent may be used to carry out projects of a national scope; and

        ‘(B) any amounts not used under subparagraph (A) shall be allocated to the States.’.

    (c) APPORTIONMENTS- Section 5311(c) is amended to read as follows:

    ‘(c) APPORTIONMENTS-

      ‘(1) PUBLIC TRANSPORTATION ON INDIAN RESERVATIONS- Of the amounts made available or appropriated for each fiscal year pursuant to subsections (a)(1)(C)(v) and (b)(2)(F) of section 5338, the following amounts shall be apportioned 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) $6,000,000 for fiscal year 2005.

        ‘(B) $8,000,000 for fiscal year 2006.

        ‘(C) $10,000,000 for fiscal year 2007.

        ‘(D) $12,000,000 for fiscal year 2008.

        ‘(E) $15,000,000 for fiscal year 2009.

      ‘(2) REMAINING AMOUNTS- Of the amounts made available or appropriated for each fiscal year pursuant to subsections (a)(1)(C)(v) and (b)(2)(F) of section 5338 that are not apportioned under paragraph (1)--

        ‘(A) 20 percent shall be apportioned to the States in accordance with paragraph (3); and

        ‘(B) 80 percent shall be apportioned to the States in accordance with paragraph (4).

      ‘(3) APPORTIONMENTS BASED ON LAND AREA IN NONURBANIZED AREAS-

        ‘(A) IN GENERAL- Subject to subparagraph (B), each State shall receive an amount that is equal to the amount apportioned under paragraph (2)(A) 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.

        ‘(B) MAXIMUM APPORTIONMENT- No State shall receive more than 5 percent of the amount apportioned under this paragraph.

      ‘(4) APPORTIONMENTS BASED ON POPULATION IN NONURBANIZED AREAS- Each State shall receive an amount equal to the amount apportioned under paragraph (2)(B) multiplied by the ratio of the population of areas other than urbanized areas in that State 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.’.

    (d) USE FOR ADMINISTRATIVE, PLANNING, AND TECHNICAL ASSISTANCE- Section 5311(e) is amended--

      (1) by striking ‘AND TECHNICAL ASSISTANCE- (1) The Secretary of Transportation’ and inserting ‘, PLANNING, AND TECHNICAL ASSISTANCE- The Secretary’;

      (2) by striking ‘to a recipient’; and

      (3) by striking paragraph (2).

    (e) INTERCITY BUS TRANSPORTATION- Section 5311(f) is amended--

      (1) in paragraph (1)--

        (A) by striking ‘(1)’ and inserting the following:

      ‘(1) IN GENERAL- ’; and

        (B) by striking ‘after September 30, 1993,’; and

      (2) in paragraph (2)--

        (A) by striking ‘A State’ and inserting ‘After consultation with affected intercity bus service providers, a State’; and

        (B) by striking ‘of Transportation’.

    (f) FEDERAL SHARE OF COSTS- Section 5311(g) is amended to read as follows:

    ‘(g) FEDERAL SHARE OF COSTS-

      ‘(1) MAXIMUM FEDERAL SHARE-

        ‘(A) CAPITAL PROJECTS-

          ‘(i) IN GENERAL- Except as provided under clause (ii), a grant awarded under this section for any purpose other than operating assistance may not exceed 80 percent of the net capital costs of the project, as determined by the Secretary.

          ‘(ii) EXCEPTION- A State described in section 120(d) of title 23 shall receive a Federal share of the net capital costs in accordance with the formula under that section.

        ‘(B) OPERATING ASSISTANCE-

          ‘(i) IN GENERAL- Except as provided under clause (ii), 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.

          ‘(ii) EXCEPTION- A State described in section 120(d) of title 23 shall receive a Federal share of the net operating costs equal to 62.5 percent of the Federal share provided for under subparagraph (A)(ii).

      ‘(2) OTHER FUNDING SOURCES- Funds for a project under this section that are not provided for by a grant under this section--

        ‘(A) may be provided from--

          ‘(i) an undistributed cash surplus;

          ‘(ii) a replacement or depreciation cash fund or reserve;

          ‘(iii) a service agreement with a State or local social service agency or a private social service organization; or

          ‘(iv) new capital; and

        ‘(B) may be derived from amounts appropriated to or made available to a Federal agency (other than the Department of Transportation, except for Federal Land Highway funds) that are eligible to be expended for transportation.

      ‘(3) USE OF FEDERAL GRANT- A State carrying out a program of operating assistance under this section may not limit the level or extent of use of the Federal grant for the payment of operating expenses.

      ‘(4) EXCEPTION- For purposes of paragraph (2)(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.’.

    (g) WAIVER CONDITION- Section 5311(j)(1) is amended by striking ‘but the Secretary of Labor may waive the application of section 5333(b)’ and inserting ‘if the Secretary of Labor utilizes a Special Warranty that provides a fair and equitable arrangement to protect the interests of employees’.

SEC. 3014. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT PROJECTS.

    (a) IN GENERAL- Section 5312 is amended--

      (1) by amending subsection (a) to read as follows:

    ‘(a) RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROJECTS-

      ‘(1) IN GENERAL- The Secretary may make grants, contracts, cooperative agreements, or other transactions (including agreements with departments, agencies, and instrumentalities of the United States Government) for research, development, demonstration or deployment projects, or evaluation of technology of national significance to public transportation that the Secretary determines will improve public transportation service or help public transportation service meet the total transportation needs at a minimum cost.

      ‘(2) INFORMATION- The Secretary may request and receive appropriate information from any source.

      ‘(3) SAVINGS PROVISION- This subsection does not limit the authority of the Secretary under any other law.’;

      (2) by striking subsections (b) and (c);

      (3) by redesignating subsections (d) and (e) as (b) and (c), respectively.

      (4) in subsection (b), as redesignated--

        (A) in paragraph (2), by striking ‘other agreements’ and inserting ‘other transactions’; and

        (B) in paragraph (5), by striking ‘within the Mass Transit Account of the Highway Trust Fund’; and

      (5) in subsection (c), as redesignated--

        (A) in paragraph (2), by striking ‘public and private’ and inserting ‘public or private’; and

        (B) in paragraph (3), by striking ‘within the Mass Transit Account of the Highway Trust Fund’ .

    (b) CONFORMING AMENDMENTS-

      (1) SECTION HEADING- The heading of section 5312 is amended to read as follows:

‘Sec. 5312. Research, development, demonstration, and deployment projects’.

      (2) TABLE OF SECTIONS- The item relating to section 5312 in the table of sections for chapter 53 is amended to read as follows:

      ‘5312. Research, development, demonstration, and deployment projects.’.

SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM.

    (a) IN GENERAL- Section 5313 is amended--

      (1) by striking subsection (b);

      (2) in subsection (a)--

        (A) in paragraph (1), by striking ‘(1) The amounts made available under paragraphs (1) and (2)C)(ii) of section 5338(c) of this title’ and inserting ‘The amounts made available under subsections (a)(5)(C)(iii) and (b)(2)(G)(i) of section 5338’; and

        (B) in paragraph (2), by striking ‘(2)’ and inserting the following:

    ‘(b) FEDERAL ASSISTANCE- ’; and

      (3) by amending subsection (c) to read as follows:

    ‘(c) FEDERAL SHARE- If there would be a clear and direct financial benefit to an entity under a grant or contract financed under this section, the Secretary shall establish a Federal share consistent with such benefit.’.

    (b) CONFORMING AMENDMENTS-

      (1) SECTION HEADING- The heading of section 5313 is amended to read as follows:

‘Sec. 5313. Transit cooperative research program’.

      (2) TABLE OF SECTIONS- The item relating to section 5313 in the table of sections for chapter 53 is amended to read as follows:

      ‘5313. Transit cooperative research program.’.

SEC. 3016. NATIONAL RESEARCH PROGRAMS.

    (a) IN GENERAL- Section 5314 is amended--

      (1) in subsection (a)--

        (A) by amending paragraph (1) to read as follows:

      ‘(1) AVAILABILITY OF FUNDS- The Secretary may use amounts made available under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv) of section 5338 for grants, contracts, cooperative agreements, or other transactions for the purposes described in sections 5312, 5315, and 5322.’;

        (B) in paragraph (2), by striking ‘(2) Of’ and inserting the following:

      ‘(2) ADA COMPLIANCE- From’;

        (C) by amending paragraph (3) to read as follows:

      ‘(3) SPECIAL DEMONSTRATION INITIATIVES- The Secretary may use not more than 25 percent of the amounts made available under paragraph (1) for special demonstration initiatives, subject to terms that the Secretary determines to be consistent with this chapter. For a nonrenewable grant of not more than $100,000, the Secretary shall provide expedited procedures for complying with the requirements of this chapter.’;

        (D) in paragraph (4)--

          (i) by striking subparagraph (B); and

          (ii) by redesignating subparagraph (C) as subparagraph (B); and

        (E) by adding at the end the following:

      ‘(6) MEDICAL TRANSPORTATION DEMONSTRATION GRANTS-

        ‘(A) GRANTS AUTHORIZED- The Secretary may award demonstration grants, from funds made available under paragraph (1), to eligible entities to provide transportation services to individuals to access dialysis treatments and other medical treatments for renal disease.

        ‘(B) ELIGIBLE ENTITIES- An entity shall be eligible to receive a grant under this paragraph if the entity--

          ‘(i) meets the conditions described in section 501(c)(3) of the Internal Revenue Code of 1986; or

          ‘(ii) is an agency of a State or unit of local government.

        ‘(C) USE OF FUNDS- Grant funds received under this paragraph may be used to provide transportation services to individuals to access dialysis treatments and other medical treatments for renal disease.

        ‘(D) APPLICATION-

          ‘(i) IN GENERAL- Each eligible entity desiring a grant under this paragraph shall submit an application to the Secretary at such time, at such place, and containing such information as the Secretary may reasonably require.

          ‘(ii) SELECTION OF GRANTEES- In awarding grants under this paragraph, the Secretary shall give preference to eligible entities from communities with--

            ‘(I) high incidence of renal disease; and

            ‘(II) limited access to dialysis facilities.

        ‘(E) RULEMAKING- The Secretary shall issue regulations to implement and administer the grant program established under this paragraph.

        ‘(F) REPORT- The Secretary shall submit a report on the results of the demonstration projects funded under this paragraph to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.’; and

      (2) by amending subsection (b) to read as follows:

    ‘(b) FEDERAL SHARE- If there would be a clear and direct financial benefit to an entity under a grant, contract, cooperative agreement, or other transaction financed under subsection (a) or section 5312, 5313, 5315, or 5322, the Secretary shall establish a Federal share consistent with such benefit.’.

    (c) NATIONAL TECHNICAL ASSISTANCE CENTER FOR SENIOR TRANSPORTATION; ALTERNATIVE FUELS STUDY- Section 5314 is amended by adding at the end the following:

    ‘(c) NATIONAL TECHNICAL ASSISTANCE CENTER FOR SENIOR TRANSPORTATION-

      ‘(1) ESTABLISHMENT- The Secretary shall award grants to a national not-for-profit organization for the establishment and maintenance of a national technical assistance center.

      ‘(2) ELIGIBILITY- An organization shall be eligible to receive the grant under paragraph (1) if the organization--

        ‘(A) focuses significantly on serving the needs of the elderly;

        ‘(B) has demonstrated knowledge and expertise in senior transportation policy and planning issues;

        ‘(C) has affiliates in a majority of the States;

        ‘(D) has the capacity to convene local groups to consult on operation and development of senior transportation programs; and

        ‘(E) has established close working relationships with the Federal Transit Administration and the Administration on Aging.

      ‘(3) USE OF FUNDS- The national technical assistance center established under this section shall--

        ‘(A) gather best practices from throughout the country and provide such practices to local communities that are implementing senior transportation programs;

        ‘(B) work with teams from local communities to identify how they are successfully meeting the transportation needs of senior and any gaps in services in order to create a plan for an integrated senior transportation program;

        ‘(C) provide resources on ways to pay for senior transportation services;

        ‘(D) create a web site to publicize and circulate information on senior transportation programs;

        ‘(E) establish a clearinghouse for print, video, and audio resources on senior mobility; and

        ‘(F) administer the demonstration grant program established under paragraph (4).

      ‘(4) GRANTS AUTHORIZED-

        ‘(A) IN GENERAL- The national technical assistance center established under this section, in consultation with the Federal Transit Administration, shall award senior transportation demonstration grants to--

          ‘(i) local transportation organizations;

          ‘(ii) State agencies;

          ‘(iii) units of local government; and

          ‘(iv) nonprofit organizations.

        ‘(B) USE OF FUNDS- Grant funds received under this paragraph may be used to--

          ‘(i) evaluate the state of transportation services for senior citizens;

          ‘(ii) recognize barriers to mobility that senior citizens encounter in their communities;

          ‘(iii) establish partnerships and promote coordination among community stakeholders, including public, not-for-profit, and for-profit providers of transportation services for senior citizens;

          ‘(iv) identify future transportation needs of senior citizens within local communities; and

          ‘(v) establish strategies to meet the unique needs of healthy and frail senior citizens.

        ‘(C) SELECTION OF GRANTEES- The Secretary shall select grantees under this subsection based on a fair representation of various geographical locations throughout the United States.

      ‘(5) ALLOCATIONS- From the funds made available for each fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv) of section 5338, $3,000,000 shall be allocated to carry out this subsection.

    ‘(d) ALTERNATIVE FUELS STUDY-

      ‘(1) STUDY- The Secretary shall conduct a study of the actions necessary to facilitate the purchase of increased volumes of alternative fuels (as defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211)) for use in public transit vehicles

      ‘(2) SCOPE OF STUDY- The study conducted under this subsection shall focus on the incentives necessary to increase the use of alternative fuels in public transit vehicles, including buses, fixed guideway vehicles, and ferries.

      ‘(3) CONTENTS- The study shall consider--

        ‘(A) the environmental benefits of increased use of alternative fuels in transit vehicles;

        ‘(B) existing opportunities available to transit system operators that encourage the purchase of alternative fuels for transit vehicle operation;

        ‘(C) existing barriers to transit system operators that discourage the purchase of alternative fuels for transit vehicle operation, including situations where alternative fuels that do not require capital improvements to transit vehicles are disadvantaged over fuels that do require such improvements; and

        ‘(D) the necessary levels and type of support necessary to encourage additional use of alternative fuels for transit vehicle operation.

      ‘(4) RECOMMENDATIONS- The study shall recommend regulatory and legislative alternatives that will result in the increased use of alternative fuels in transit vehicles.

      ‘(5) REPORT- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall submit the study completed under this subsection to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives’.

    (c) CONFORMING AMENDMENTS-

      (1) SECTION HEADING- The heading for section 5314 is amended to read as follows:

‘Sec. 5314. National research programs’.

      (2) TABLE OF SECTIONS- The item relating to section 5314 in the table of sections for chapter 53 is amended to read as follows:

      ‘5314. National research programs.’.

SEC. 3017. NATIONAL TRANSIT INSTITUTE.

    (a) Section 5315 is amended--

      (1) by striking subsections (a) and (b) and inserting the following:

    ‘(a) ESTABLISHMENT- The Secretary shall award a grant to Rutgers University to conduct a national transit institute.

    ‘(b) DUTIES-

      ‘(1) IN GENERAL- In cooperation with the Federal Transit Administration, State transportation departments, public transportation authorities, and national and international entities, the institute established pursuant to subsection (a) shall develop and conduct training programs for Federal, State, and local transportation employees, United States citizens, and foreign nationals engaged or to be engaged in Government-aid public transportation work.

      ‘(2) TRAINING PROGRAMS- The training programs developed under paragraph (1) may include courses in recent developments, techniques, and procedures related to--

        ‘(A) intermodal and public transportation planning;

        ‘(B) management;

        ‘(C) environmental factors;

        ‘(D) acquisition and joint use rights of way;

        ‘(E) engineering and architectural design;

        ‘(F) procurement strategies for public transportation systems;

        ‘(G) turnkey approaches to delivering public transportation systems;

        ‘(H) new technologies;

        ‘(I) emission reduction technologies;

        ‘(J) ways to make public transportation accessible to individuals with disabilities;

        ‘(K) construction, construction management, insurance, and risk management;

        ‘(L) maintenance;

        ‘(M) contract administration;

        ‘(N) inspection;

        ‘(O) innovative finance;

        ‘(P) workplace safety; and

        ‘(Q) public transportation security.’; and

      (2) in subsection (d), by striking ‘mass’ each place it appears.

SEC. 3018. BUS TESTING FACILITY.

    Section 5318 is amended--

      (1) in subsection (a)--

        (A) by striking ‘ESTABLISHMENT- The Secretary of Transportation shall establish one facility’ and inserting ‘IN GENERAL- The Secretary shall maintain 1 facility’; and

        (B) by striking ‘established by renovating’ and inserting ‘maintained at’; and

      (2) in subsection (d), by striking ‘section 5309(m)(1)(C) of this title’ and inserting ‘paragraphs (1)(C) and (2)(B) of section 5309(i)’.

SEC. 3019. BICYCLE FACILITIES.

    Section 5319 is amended by striking ‘5307(k)’ and inserting ‘5307(d)(1)(K)’.

SEC. 3020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

    Section 5320 is repealed.

SEC. 3021. CRIME PREVENTION AND SECURITY.

    Section 5321 is repealed.

SEC. 3022. GENERAL PROVISIONS ON ASSISTANCE.

    Section 5323 is amended--

      (1) in subsection (a)--

        (A) by amending paragraph (1) to read as follows:

      ‘(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, 5304, and 5306;

        ‘(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.’; and

        (B) in paragraph (2), by striking ‘(2)’ and inserting the following:

      ‘(2) LIMITATION- ’;

      (2) by amending subsection (b) to read as follows:

    ‘(b) NOTICE AND PUBLIC HEARING-

      ‘(1) IN GENERAL- An application for a grant under this chapter for a capital project that will substantially affect a community, or the public transportation service of a community, shall include, in the environmental record for the project, evidence that the applicant has--

        ‘(A) provided an adequate opportunity for public review and comment on the project;

        ‘(B) held a public hearing on the project if the project affects significant economic, social, or environmental interests;

        ‘(C) considered the economic, social, and environmental effects of the project; and

        ‘(D) found that the project is consistent with official plans for developing the urban area.

      ‘(2) CONTENTS OF NOTICE- Notice of a hearing under this subsection--

        ‘(A) shall include a concise description of the proposed project; and

        ‘(B) shall be published in a newspaper of general circulation in the geographic area the project will serve.’;

      (3) by amending subsection (c) to read as follows:

    ‘(c) NEW TECHNOLOGY- A grant for financial assistance under this chapter for new technology, including innovative or improved products, techniques, or methods, shall be subject to the requirements of section 5309 to the extent the Secretary determines to be appropriate.’;

      (4) by amending subsection (d) to read as follows:

    ‘(d) CONDITIONS ON BUS TRANSPORTATION SERVICE- Financial assistance under this chapter may be used to buy or operate a bus only if the recipient agrees to comply with the following conditions on bus transportation service:

      ‘(1) CHARTER BUS SERVICE-

        ‘(A) IN GENERAL- Except as provided under subparagraph (B), a recipient may provide incidental charter bus service only within its lawful service area if--

          ‘(i) the recipient annually publishes, by electronic and other appropriate means, a notice--

            ‘(I) indicating its intent to offer incidental charter bus service within its lawful service area; and

            ‘(II) soliciting notices from private bus operators that wish to appear on a list of carriers offering charter bus service in that service area;

          ‘(ii) the recipient provides private bus operators with an annual opportunity to notify the recipient of its desire to appear on a list of carriers offering charter bus service in such service area;

          ‘(iii) upon receiving a request for charter bus service, the recipient electronically notifies the private bus operators listed as offering charter service in that service area with the name and contact information of the requestor and the nature of the charter service request; and

          ‘(iv) the recipient does not offer to provide charter bus service unless no private bus operator indicates that it is willing and able to provide the service within a 72-hour period after the receipt of such notice.

        ‘(B) EXCEPTION- A recipient that operates 2,000 or fewer vehicles in fixed-route peak hour service may provide incidental charter bus transportation directly to --

          ‘(i) local governments; and

          ‘(ii) social service entities with limited resources.

        ‘(C) IRREGULARLY SCHEDULED EVENTS- Service, other than commuter service, by a recipient to irregularly scheduled events, where the service is conducted in whole or in part outside the service area of the recipient, regardless of whether the service is contracted for individually with passengers, is subject to a rebuttable presumption that such service is charter service.

      ‘(2) VIOLATION OF AGREEMENTS-

        ‘(A) COMPLAINTS- A complaint regarding the violation of a charter bus service agreement shall be submitted to the Regional Administrator of the Federal Transit Administration, who shall--

          ‘(i) provide a reasonable opportunity for the recipient to respond to the complaint;

          ‘(ii) provide the recipient with an opportunity for an informal hearing; and

          ‘(iii) issue a written decision not later than 60 days after the parties have completed their submissions.

        ‘(B) APPEALS-

          ‘(i) IN GENERAL- A decision by the Regional Administrator may be appealed to a panel comprised of the Federal Transit Administrator, personnel in the Office of the Secretary of Transportation, and other persons with expertise in surface passenger transportation issues.

          ‘(ii) STANDARD OF REVIEW- The panel described in clause (i) shall consider the complaint de novo on all issues of fact and law.

          ‘(iii) WRITTEN DECISION- The appeals panel shall issue a written decision on an appeal not later than 60 days after the completion of submissions. This decision shall be the final order of the agency and subject to judicial review in district court.

        ‘(C) CORRECTION- If the Secretary determines that a violation of an agreement relating to the provision of charter service has occurred, the Secretary shall correct the violation under terms of the agreement.

        ‘(D) REMEDIES- The Secretary may issue orders to recipients to cease and desist in actions that violate the agreement, and such orders shall be binding upon the parties. In addition to any remedy spelled out in the agreement, if a recipient has failed to correct a violation within 60 days after the receipt of a notice of violation from the Secretary, the Secretary shall withhold from the recipient the lesser of--

          ‘(i) 5 percent of the financial assistance available to the recipient under this chapter for the next fiscal year; or

          ‘(ii) $200,000.

      ‘(3) REGULATIONS- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall issue amended regulations that--

        ‘(A) implement this subsection, as revised by such Act; and

        ‘(B) impose restrictions, procedures, and remedies in connection with sightseeing service by a recipient.

      ‘(4) PUBLIC NOTICE- The Secretary shall make all written decisions, guidance, and other pertinent materials relating to the procedures in this subsection available to the public in electronic and other appropriate formats in a timely manner.’;

      (5) by striking subsection (e);

      (6) by redesignating subsection (f) as subsection (e);

      (7) in subsection (e), as redesignated--

        (A) by striking ‘(1)’ and inserting the following:

      ‘(1) IN GENERAL- ’;

        (B) by striking paragraph (2);

        (C) by striking ‘This subsection’ and inserting the following:

      ‘(2) EXCEPTIONS- This subsection; and

        (D) by adding at the end the following:

      ‘(3) PENALTY- If the Secretary determines that an applicant, governmental authority, or publicly owned operator has violated the agreement required under paragraph (1), the Secretary shall bar the applicant, authority, or operator from receiving Federal transit assistance in an amount the Secretary determines to be appropriate.’;

      (8) by inserting after subsection (e) the following:

    ‘(f) BOND PROCEEDS ELIGIBLE FOR LOCAL SHARE-

      ‘(1) IN GENERAL- Notwithstanding any other provision of law, a recipient of assistance under section 5307 or 5309, may use the proceeds from the issuance of revenue bonds as part of the local matching funds for a capital project.

      ‘(2) REIMBURSEMENT BY SECRETARY- The Secretary may reimburse an eligible recipient for deposits of bond proceeds in a debt service reserve that the recipient established pursuant to section 5302(a)(1)(K) from amounts made available to the recipient under section 5307 or 5309.’;

      (9) in subsection (g)--

        (A) by striking ‘(f)’ each place it appears and inserting ‘(e)’; and

        (B) by striking ‘103(e)(4) and 142 (a) or (c)’ each place it appears and inserting ‘133 and 142’;

      (10) by amending subsection (h) to read as follows:

    ‘(h) TRANSFER OF LANDS OR INTERESTS IN LANDS OWNED BY THE UNITED STATES-

      (1) REQUEST BY SECRETARY- If the Secretary determines that any part of the lands or interests in lands owned by the United States and made available as a result of a military base closure is necessary for transit purposes eligible under this chapter, including corridor preservation, the Secretary shall submit a request to the head of the Federal agency supervising the administration of such lands or interests in lands. Such request shall include a map showing the portion of such lands or interests in lands, which is desired to be transferred for public transportation purposes.

      ‘(2) TRANSFER OF LAND- If 4 months after submitting a request under paragraph (1), the Secretary does not receive a response from the Federal agency described in paragraph (1) that certifies that the proposed appropriation of land is contrary to the public interest or inconsistent with the purposes for which such land has been reserved, or if the head of such agency agrees to the utilization or transfer under conditions necessary for the adequate protection and utilization of the reserve, such land or interests in land may be utilized or transferred to a State, local governmental authority, or public transportation operator for such purposes and subject to the conditions specified by such agency.

      ‘(3) REVERSION- If at any time the lands or interests in land utilized or transferred under paragraph (2) are no longer needed for public transportation purposes, the State, local governmental authority, or public transportation operator that received the land shall notify to the Secretary, and such lands shall immediately revert to the control of the head of the Federal agency from which the land was originally transferred.’;

      (11) in subsection (j)(5), by striking ‘Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240, 105 Stat. 1914)’ and inserting ‘Federal Public Transportation Act of 2004’;

      (12) by amending subsection (l) to read as follows:

    ‘(l) RELATIONSHIP TO OTHER LAWS- 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 transit program.’;

      (13) in subsection (m), by inserting at the end the following: ‘Requirements to perform preaward and postdelivery reviews of rolling stock purchases to ensure compliance with subsection (j) shall not apply to private nonprofit organizations or to grantees serving urbanized areas with a population of fewer than 1,000,000.’;

      (14) in subsection (o), by striking ‘the Transportation Infrastructure Finance and Innovation Act of 1998’ and inserting ‘sections 181 through 188 of title 23’; and

      (15) by adding at the end the following:

    ‘(p) PROHIBITED USE OF FUNDS- Grant funds received under this chapter may not be used to pay ordinary governmental or nonproject operating expenses.’.

SEC. 3023. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

    (a) IN GENERAL- Section 5324 is amended to read as follows:

‘Sec. 5324. Special provisions for capital projects

    ‘(a) REAL PROPERTY AND RELOCATION SERVICES- Whenever real property is acquired or furnished as a required contribution incident to a project, the Secretary shall not approve the application for financial assistance unless the applicant has made all payments and provided all assistance and assurances that are required of a State agency under sections 210 and 305 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4630 and 4655). The Secretary must be advised of specific references to any State law that are believed to be an exception to section 301 or 302 of such Act (42 U.S.C. 4651 and 4652).

    ‘(b) ADVANCE REAL PROPERTY ACQUISITIONS-

      (1) IN GENERAL- The Secretary may participate in the acquisition of real property for any project that may use the property if the Secretary determines that external market forces are jeopardizing the potential use of the property for the project and if--

        ‘(A) there are offers on the open real estate market to convey that property for a use that is incompatible with the project under study;

        ‘(B) there is an imminent threat of development or redevelopment of the property for a use that is incompatible with the project under study;

        ‘(C) recent appraisals reflect a rapid increase in the fair market value of the property;

        ‘(D) the property, because it is located near an existing transportation facility, is likely to be developed and to be needed for a future transportation improvement; or

        ‘(E) the property owner can demonstrate that, for health, safety, or financial reasons, retaining ownership of the property poses an undue hardship on the owner in comparison to other affected property owners and requests the acquisition to alleviate that hardship.

      ‘(2) ENVIRONMENTAL REVIEWS- Property acquired in accordance with this subsection may not be developed in anticipation of the project until all required environmental reviews for the project have been completed.

      ‘(3) LIMITATION- The Secretary shall limit the size and number of properties acquired under this subsection as necessary to avoid any prejudice to the Secretary’s objective evaluation of project alternatives.

      ‘(4) EXEMPTION- An acquisition under this section shall be considered an exempt project under section 176 of the Clean Air Act (42 U.S.C. 7506).

    ‘(c) RAILROAD CORRIDOR PRESERVATION-

      ‘(1) IN GENERAL- The Secretary may assist an applicant to acquire railroad 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- Railroad 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.

    ‘(d) CONSIDERATION OF ECONOMIC, SOCIAL, AND ENVIRONMENTAL INTERESTS-

      ‘(1) IN GENERAL- The Secretary may not approve an application for financial assistance for a capital project under this chapter unless the Secretary determines that the project has been developed in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). The Secretary’s findings under this paragraph shall be made a matter of public record.

      ‘(2) COOPERATION AND CONSULTATION- In carrying out section 5301(e), 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.’.

    (b) CONFORMING AMENDMENT- The item relating to section 5324 in the table of sections for chapter 53 is amended to read as follows:

      ‘5324. Special provisions for capital projects.’.

SEC. 3024. CONTRACT REQUIREMENTS.

    (a) IN GENERAL- Section 5325 is amended to read as follows:

‘Sec. 5325. Contract requirements

    ‘(a) COMPETITION- Recipients of assistance under this chapter shall conduct all procurement transactions in a manner that provides full and open competition as determined by the Secretary.

    ‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN CONTRACTS-

      ‘(1) IN GENERAL- A contract or requirement for program management, architectural engineering, construction management, a feasibility study, and preliminary engineering, design, architectural, engineering, surveying, mapping, or related services for a project for which Federal assistance is provided under this chapter shall be awarded in the same manner as a contract for architectural and engineering services is negotiated under chapter 11 of title 40, or an equivalent qualifications-based requirement of a State. This subsection does not apply to the extent a State has adopted or adopts by law a formal procedure for procuring those services.

      ‘(2) ADDITIONAL REQUIREMENTS- When awarding a contract described in paragraph (1), recipients of assistance under this chapter shall comply with the following requirements:

        ‘(A) Any contract or subcontract awarded under this chapter shall be performed and audited in compliance with cost principles contained in part 31 of title 48, Code of Federal Regulations (commonly known as the Federal Acquisition Regulation).

        ‘(B) A recipient of funds under a contract or subcontract awarded under this chapter shall accept indirect cost rates established in accordance with the Federal Acquisition Regulation for 1-year applicable accounting periods by a cognizant Federal or State government agency, if such rates are not currently under dispute.

        ‘(C) After a firm’s indirect cost rates are accepted under subparagraph (B), the recipient of the funds shall apply such rates for the purposes of contract estimation, negotiation, administration, reporting, and contract payment, and shall not be limited by administrative or de facto ceilings.

        ‘(D) A recipient requesting or using the cost and rate data described in subparagraph (C) shall notify any affected firm before such request or use. Such data shall be confidential and shall not be accessible or provided by the group of agencies sharing cost data under this subparagraph, except by written permission of the audited firm. If prohibited by law, such cost and rate data shall not be disclosed under any circumstances.

    ‘(c) EFFICIENT PROCUREMENT- A recipient may award a procurement contract under this chapter to other than the lowest bidder if the award furthers an objective consistent with the purposes of this chapter, including improved long-term operating efficiency and lower long-term costs.

    ‘(d) DESIGN-BUILD PROJECTS-

      ‘(1) DEFINED TERM- As used in this subsection, the term ‘design-build project’--

        ‘(A) means a project under which a recipient enters into a contract with a seller, firm, or consortium of firms to design and build an operable segment of a public transportation system that meets specific performance criteria; and

        ‘(B) may include an option to finance, or operate for a period of time, the system or segment or any combination of designing, building, operating, or maintaining such system or segment.

      ‘(2) FINANCIAL ASSISTANCE FOR CAPITAL COSTS- Federal financial assistance under this chapter may be provided for the capital costs of a design-build project after the recipient complies with Government requirements.

    ‘(e) ROLLING STOCK-

      ‘(1) ACQUISITION- A recipient of financial assistance under this chapter may enter into a contract to expend that assistance to acquire rolling stock--

        ‘(A) with a party selected through a competitive procurement process; or

        ‘(B) based on--

          ‘(i) initial capital costs; or

          ‘(ii) performance, standardization, life cycle costs, and other factors.

      ‘(2) MULTIYEAR CONTRACTS- A recipient procuring rolling stock with Federal financial assistance under this chapter may make a multiyear contract, including options, to buy not more than 5 years of requirements for rolling stock and replacement parts. The Secretary shall allow a recipient to act on a cooperative basis to procure rolling stock under this paragraph and in accordance with other Federal procurement requirements.

    ‘(f) EXAMINATION OF RECORDS- Upon request, the Secretary and the Comptroller General, or any of their representatives, shall have access to and the right to examine and inspect all records, documents, and papers, including contracts, related to a project for which a grant is made under this chapter.

    ‘(g) GRANT PROHIBITION- A grant awarded under this chapter may not be used to support a procurement that uses an exclusionary or discriminatory specification.

    ‘(h) BUS DEALER REQUIREMENTS- No State law requiring buses to be purchased through in-State dealers shall apply to vehicles purchased with a grant under this chapter.

    ‘(i) AWARDS TO RESPONSIBLE CONTRACTORS-

      ‘(1) IN GENERAL- Federal financial assistance under this chapter may be provided for contracts only if a recipient awards such contracts to responsible contractors possessing the ability to successfully perform under the terms and conditions of a proposed procurement.

      ‘(2) CRITERIA- Before making an award to a contractor under paragraph (1), a recipient shall consider--

        ‘(A) the integrity of the contractor;

        ‘(B) the contractor’s compliance with public policy;

        ‘(C) the contractor’s past performance, including the performance reported in the Contractor Performance Assessment Reports required under section 5309(m)(4); and

        ‘(D) the contractor’s financial and technical resources.’.

    (b) CONFORMING AMENDMENTS- Chapter 53 is amended by striking section 5326.

SEC. 3025. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

    (a) PROJECT MANAGEMENT PLAN REQUIREMENTS- Section 5327(a) is amended--

      (1) in paragraph (11), by striking ‘and’ at the end;

      (2) in paragraph (12), by striking the period at the end and inserting ‘; and’; and

      (3) by adding at the end the following:

      ‘(13) safety and security management.’.

    (b) LIMITATIONS ON USE OF AVAILABLE AMOUNTS- Section 5327(c) is amended--

      (1) by amending paragraph (1) to read as follows:

      ‘(1) IN GENERAL- The Secretary may not use more than 1 percent of amounts made available for a fiscal year to carry out any of sections 5307 through 5311, 5316, or 5317, or a project under the National Capital Transportation Act of 1969 (Public Law 91-143) to make a contract to oversee the construction of major projects under any of sections 5307 through 5311, 5316, or 5317 or under that Act.’;

      (2) in paragraph (2)--

        (A) by striking ‘(2)’ and inserting the following:

      ‘(2) OTHER ALLOWABLE USES- ’; and

        (B) by inserting ‘and security’ after ‘safety’; and

      (3) in paragraph (3), by striking ‘(3) The Government shall’ and inserting the following:

      ‘(3) FEDERAL SHARE- Federal funds shall be used to’.

SEC. 3026. PROJECT REVIEW.

    Section 5328 is amended--

      (1) in subsection (a)--

        (A) in paragraph (1) by striking ‘(1) When the Secretary of Transportation allows a new fixed guideway project to advance into the alternatives analysis stage of project review, the Secretary shall cooperate with the applicant’ and inserting the following:

      ‘(1) ALTERNATIVES ANALYSIS- The Secretary shall cooperate with an applicant undertaking an alternatives analysis under subsections (e) and (f) of section 5309’;

        (B) in paragraph (2)--

          (i) by striking ‘(2)’ and inserting the following:

      ‘(2) ADVANCEMENT TO PRELIMINARY ENGINEERING STAGE- ’; and

          (ii) by striking ‘is consistent with’ and inserting ‘meets the requirements of’;

        (C) in paragraph (3)--

          (i) by striking ‘(3)’ and inserting the following:

      ‘(3) RECORD OF DECISION- ’;

          (ii) by striking ‘of construction’; and

          (iii) by adding before the period at the end the following: ‘if the Secretary determines that the project meets the requirements of subsection (e) or (f) of section 5309’; and

        (D) by striking paragraph (4); and

      (2) by striking subsection (c).

SEC. 3027. INVESTIGATIONS OF SAFETY AND SECURITY RISK.

    (a) IN GENERAL- Section 5329 is amended to read as follows:

‘Sec. 5329. Investigation of safety hazards and security risks

    ‘(a) IN GENERAL- The Secretary may conduct investigations into safety hazards and security risks associated with a condition in equipment, a facility, or an operation financed under this chapter to establish the nature and extent of the condition and how to eliminate, mitigate, or correct it.

    ‘(b) SUBMISSION OF CORRECTIVE PLAN- If the Secretary establishes that a safety hazard or security risk warrants further protective measures, the Secretary shall require the local governmental authority receiving amounts under this chapter to submit a plan for eliminating, mitigating, or correcting it.

    ‘(c) WITHHOLDING OF FUNDS- Financial assistance under this chapter, in an amount to be determined by the Secretary, may be withheld until a plan is approved and carried out.

    ‘(d) PUBLIC TRANSPORTATION SECURITY-

      ‘(1) IN GENERAL- Not later than 90 days after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall enter into a memorandum of understanding with the Secretary of Homeland Security to define and clarify the respective roles and responsibilities of the Department of Transportation and the Department of Homeland Security relating to public transportation security.

      ‘(2) CONTENTS- The memorandum of understanding described in paragraph (1) shall--

        ‘(A) establish national security standards for public transportation agencies;

        ‘(B) establish funding priorities for grants from the Department of Homeland Security to public transportation agencies;

        ‘(C) create a method of coordination with public transportation agencies on security matters; and

        ‘(D) address any other issues determined to be appropriate by the Secretary and the Secretary of Homeland Security.’.

    (b) CONFORMING AMENDMENT- The item relating to section 5329 in the table of sections for chapter 53 is amended to read as follows:

      ‘5329. Investigation of safety hazards and security risks.’.

SEC. 3028. STATE SAFETY OVERSIGHT.

    (a) IN GENERAL- Section 5330 is amended--

      (1) by amending the heading to read as follows:

‘Sec. 5330. Withholding amounts for noncompliance with State safety oversight requirements’;

      (2) by amending subsection (a) to read as follows:

    ‘(a) APPLICATION- This section shall only apply to--

      ‘(1) States that have rail fixed guideway public transportation systems that are not subject to regulation by the Federal Railroad Administration; and

      ‘(2) States that are designing rail fixed guideway public transportation systems that will not be subjected to regulation by the Federal Railroad Administration.’;

      (3) in subsection (d), by striking ‘affected States’ and inserting the following: ‘affected States--

      ‘(1) shall ensure uniform safety standards and enforcement; or

      ‘(2) may designate’; and

      (4) in subsection (f), by striking ‘Not later than December 18, 1992, the’ and inserting ‘The’.

    (b) CONFORMING AMENDMENT- The item relating to section 5330 in the table of sections for chapter 53 is amended to read as follows:

      ‘5330. Withholding amounts for noncompliance with State safety oversight requirements.’.

SEC. 3029. SENSITIVE SECURITY INFORMATION.

    Section 40119(b) is amended--

      (1) in paragraph (1)(C), by inserting ‘, transportation facilities or infrastructure, or transportation employees’ before the period at the end; and

      (2) by adding at the end the following:

    ‘(3) A State or local government may not enact, enforce, prescribe, issue, or continue in effect any law, regulation, standard, or order to the extent it is inconsistent with this section or regulations prescribed under this section.’.

SEC. 3030. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE AGAINST PUBLIC TRANSPORTATION SYSTEMS.

    (a) IN GENERAL- Section 1993 of title 18, United States Code, is amended--

      (1) by striking ‘mass’ each place it appears and inserting ‘public’;

      (2) in subsection (a)(5), by inserting ‘controlling,’ after ‘operating’; and

      (3) in subsection (c)(5), by striking ‘5302(a)(7) of title 49, United States Code,’ and inserting ‘5302(a) of title 49,’.

    (b) CONFORMING AMENDMENT- The table of contents for chapter 97 of title 18, United States Code is amended by amending the item related to section 1993 to read as follows:

      ‘1993. Terrorist attacks and other acts of violence against public transportation systems.’.

SEC. 3031. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

    Section 5331 is amended--

      (1) in subsection (a)(3), by inserting before the period at the end the following: ‘or sections 2303a, 7101(i), or 7302(e) of title 46. The Secretary may also decide that a form of public transportation is covered adequately, for employee alcohol and controlled substances testing purposes, under the alcohol and controlled substance statutes or regulations of an agency within the Department of Transportation or other Federal agency’; and

      (2) in subsection (f), by striking paragraph (3).

SEC. 3032. EMPLOYEE PROTECTIVE ARRANGEMENTS.

    Section 5333(b) is amended--

      (1) in paragraph (3), by striking the period at the end and inserting ‘: Provided, That--

      ‘(A) the protective period shall not exceed 4 years; and

      ‘(B) the separation allowance shall not exceed 12 months.’; and

      (2) by adding at the end the following:

    ‘(4) An arrangement under this subsection shall not guarantee continuation of employment as a result of a change in private contractors through competitive bidding unless such continuation is otherwise required under subparagraph (A), (B), or (D) of paragraph (2).

    ‘(5) Fair and equitable arrangements to protect the interests of employees utilized by the Secretary of Labor for assistance to purchase like-kind equipment or facilities, and amendments to existing assistance agreements, shall be certified without referral.

    ‘(6) Nothing in this subsection shall affect the level of protection provided to freight railroad employees.’.

SEC. 3033. ADMINISTRATIVE PROCEDURES.

    Section 5334 is amended--

      (1) in subsection (a)--

        (A) in paragraph (1), by striking ‘5309-5311 of this title’ and all that follows and inserting ‘5309 through 5311;’;

        (B) in paragraph (9), by striking ‘and’ at the end;

        (C) in paragraph (10), by striking the period at the end and inserting ‘; and’; and

        (D) by inserting at the end the following:

      ‘(11) issue regulations as necessary to carry out the purposes of this chapter.’;

      (2) by redesignating subsections (b), (c), (d), (e), (f), (g), (h), (i), and (j) as subsections (c), (d), (e), (f), (g), (h), (i), (j), and (k), respectively;

      (3) by adding after subsection (a) the following:

    ‘(b) PROHIBITIONS AGAINST REGULATING OPERATIONS AND CHARGES-

      ‘(1) IN GENERAL- Except as directed by the President for purposes of national defense or in the event of a national or regional emergency, the Secretary may not regulate--

        ‘(A) the operation, routes, or schedules of a public transportation system for which a grant is made under this chapter; or

        ‘(B) the rates, fares, tolls, rentals, or other charges prescribed by any public or private transportation provider.

      ‘(2) COMPLIANCE WITH AGREEMENT- Nothing in this subsection shall prevent the Secretary from requiring a recipient of funds under this chapter to comply with the terms and conditions of its Federal assistance agreement.’; and

      (4) in subsection (j)(1), as redesignated, by striking ‘carry out section 5312(a) and (b)(1) of this title’ and inserting ‘advise and assist the Secretary in carrying out section 5312(a)’.

SEC. 3034. REPORTS AND AUDITS.

    Section 5335 is amended--

      (1) by striking subsection (b); and

      (2) in subsection (a)--

        (A) in paragraph (1), by striking ‘(1)’; and

        (B) in paragraph (2), by striking ‘(2) The Secretary may make a grant under section 5307 of this title’ and inserting the following:

    ‘(b) REPORTING AND UNIFORM SYSTEMS- The Secretary may award a grant under section 5307 or 5311’.

SEC. 3035. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA GRANTS.

    Section 5336 is amended--

      (1) by striking subsection (d);

      (2) by striking subsection (h);

      (3) by striking subsection (k);

      (4) by redesignating subsections (a) through (c) as subsections (b) through (d), respectively;

      (5) by adding before subsection (b), as redesignated, the following:

    ‘(a) APPORTIONMENTS- Of the amounts made available for each fiscal year under subsections (a)(1)(C)(vi) and (b)(2)(L) of section 5338--

      ‘(1) there shall be apportioned, in fiscal year 2005 and each fiscal year thereafter, $35,000,000 to certain urbanized areas with populations of less than 200,000 in accordance with subsection (k); and

      ‘(2) any amount not apportioned under paragraph (1) shall be apportioned to urbanized areas in accordance with subsections (b) through (d).’;

      (6) in subsection (b), as redesignated--

        (A) by striking ‘Of the amount made available or appropriated under section 5338(a) of this title’ and inserting ‘Of the amount apportioned under subsection (a)(3)’; and

        (B) in paragraph (2), by striking ‘subsections (b) and (c) of this section’ and inserting ‘subsections (c) and (d)’;

      (7) in subsection (c)(2), as redesignated, by striking ‘subsection (a)(2) of this section’ and inserting ‘subsection (b)(2)’;

      (8) in subsection (d), as redesignated, by striking ‘subsection (a)(2) of this section’ and inserting ‘subsection (b)(2)’;

      (9) in subsection (e)(1), by striking ‘subsections (a) and (h)(2) of section 5338 of this title’ and inserting ‘subsections (a) and (b) of section 5338’;

      (10) in subsection (g), by striking ‘subsection (a)(1) of this section’ each place it appears and inserting ‘subsection (b)(1)’; and

      (11) by adding at the end the following:

    ‘(k) SMALL TRANSIT INTENSIVE CITIES FACTORS- The amount apportioned under subsection (a)(1) shall be apportioned to urbanized areas as follows:

      ‘(1) The Secretary shall calculate a factor equal to the sum of revenue vehicle hours operated within urbanized areas with a population of between 200,000 and 1,000,000 divided by the sum of the population of all such urbanized areas.

      ‘(2) The Secretary shall designate as eligible for an apportionment under this subsection all urbanized areas with a population of under 200,000 for which the number of revenue vehicle hours operated within the urbanized area divided by the population of the urbanized area exceeds the factor calculated under paragraph (1).

      ‘(3) For each urbanized area qualifying for an apportionment under paragraph (2), the Secretary shall calculate an amount equal to the product of the population of that urbanized area and the factor calculated under paragraph (1).

      ‘(4) For each urbanized area qualifying for an apportionment under paragraph (2), the Secretary shall calculate an amount equal to the difference between the number of revenue vehicle hours within that urbanized area less the amount calculated in paragraph (3).

      ‘(5) Each urbanized area qualifying for an apportionment under paragraph (2) shall receive an amount equal to the amount to be apportioned under this subsection multiplied by the amount calculated for that urbanized area under paragraph (4) divided by the sum of the amounts calculated under paragraph (4) for all urbanized areas qualifying for an apportionment under paragraph (2).

    ‘(l) STUDY ON INCENTIVES IN FORMULA PROGRAMS-

      ‘(1) STUDY- The Secretary shall conduct a study to assess the feasibility and appropriateness of developing and implementing an incentive funding system under sections 5307 and 5311 for operators of public transportation.

      ‘(2) REPORT-

        ‘(A) IN GENERAL- Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2004, the Secretary shall submit a report on the results of the study conducted under paragraph (1) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.

        ‘(B) CONTENTS- The report submitted under subparagraph (A) shall include--

          ‘(i) an analysis of the availability of appropriate measures to be used as a basis for the distribution of incentive payments;

          ‘(ii) the optimal number and size of any incentive programs;

          ‘(iii) what types of systems should compete for various incentives;

          ‘(iv) how incentives should be distributed; and

          ‘(v) the likely effects of the incentive funding system.’.

SEC. 3036. APPORTIONMENTS FOR FIXED GUIDEWAY MODERNIZATION.

    Section 5337 is amended--

      (1) in subsection (a), by striking ‘for each of fiscal years 1998 through 2003’; and

      (2) by striking ‘section 5336(b)(2)(A)’ each place it appears and inserting ‘section 5336(c)(2)(A)’.

SEC. 3037. AUTHORIZATIONS.

    Section 5338 is amended to read as follows:

‘Sec. 5338. Authorizations

    ‘(a) Fiscal Year 2004-

      ‘(1) FORMULA GRANTS-

        ‘(A) TRUST FUND- For fiscal year 2004, $3,053,079,920 shall be available from the Mass Transit Account of the Highway Trust Fund to carry out sections 5307, 5309, 5310, and 5311 of this chapter and section 3038 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note).

        ‘(B) GENERAL FUND- In addition to the amounts made available under subparagraph (A), there are authorized to be appropriated $763,269,980 for fiscal year 2004 to carry out sections 5307, 5309, 5310, and 5311 of this chapter and section 3038 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note).

        ‘(C) ALLOCATION OF FUNDS- Of the amounts made available or appropriated under this paragraph--

          ‘(i) $4,821,335 shall be available to the Alaska Railroad for improvements to its passenger operations under section 5307;

          ‘(ii) $6,908,995 shall be available to provide over-the-road bus accessibility grants under section 3038 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note);

          ‘(iii) $90,117,950 shall be available to provide transportation services to elderly individuals and individuals with disabilities under section 5310;

          ‘(iv) $239,188,058 shall be available to provide financial assistance for other than urbanized areas under section 5311;

          ‘(v) $3,425,608,562 shall be available to provide financial assistance for urbanized areas under section 5307; and

          ‘(vi) $49,705,000 shall be available to provide financial assistance for buses and bus facilities under section 5309..

      ‘(2) JOB ACCESS AND REVERSE COMMUTE-

        ‘(A) TRUST FUND- For fiscal year 2004, $99,410,000 shall be available from the Mass Transit Account of the Highway Trust Fund to carry out section 3037 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5309 note).

        ‘(B) GENERAL FUND- In addition to the amounts made available under paragraph (A), there are authorized to be appropriated $24,852,500 for fiscal year 2004 to carry out section 3037 of the Transportation Equity Act of the 21st Century (49 U.S.C. 5309 note).

      ‘(3) CAPITAL PROGRAM GRANTS-

        ‘(A) TRUST FUND- For fiscal year 2004, $2,495,191,000 shall be available from the Mass Transit Account of the Highway Trust Fund to carry out section 5309.

        ‘(B) GENERAL FUND- In addition to the amounts made available under subparagraph (A), there are authorized to be appropriated $623,797,750 for fiscal year 2004 to carry out section 5309.

      ‘(4) PLANNING-

        ‘(A) TRUST FUND- For fiscal year 2004, $58,254,260 shall be available from the Mass Transit Account of the Highway Trust Fund to carry out section 5308.

        ‘(B) GENERAL FUND- In addition to the amounts made available under subparagraph (A), there are authorized to be appropriated $14,315,040 for fiscal year 2004 to carry out section 5308.

        ‘(C) ALLOCATION OF FUNDS- Of the amounts made available or appropriated under this paragraph--

          ‘(i) 82.72 percent shall be allocated for metropolitan planning under section 5308(c); and

          ‘(ii) 17.28 percent shall be allocated for State planning under section 5308(d).

      ‘(5) RESEARCH-

        ‘(A) TRUST FUND- For fiscal year 2004, $41,951,020 shall be available from the Mass Transit Account of the Highway Trust Fund to carry out sections 5311(b), 5312, 5313, 5314, 5315, and 5322.

        ‘(B) GENERAL FUND- In addition to the amounts made available under subparagraph (A), there are authorized to be appropriated $10,736,280 for fiscal year 2004 to carry out sections 5311(b), 5312, 5313, 5314, 5315, and 5322.

        ‘(C) ALLOCATION OF FUNDS- Of the funds made available or appropriated under this paragraph--

          ‘(i) not less than $3,976,400 shall be available to carry out programs of the National Transit Institute under section 5315;

          ‘(ii) not less than $5,219,025 shall be available to carry out section 5311(b)(2);

          ‘(iii) not less than $8,201,325 shall be available to carry out section 5313; and

          ‘(iv) the remainder shall be available to carry out national research and technology programs under sections 5312, 5314, and 5322.

      ‘(6) UNIVERSITY TRANSPORTATION RESEARCH-

        ‘(A) TRUST FUND- For fiscal year 2004, $4,771,680 shall be available from the Mass Transit Account of the Highway Trust Fund to carry out sections 5505 and 5506.

        ‘(B) GENERAL FUND- In addition to amounts made available under subparagraph (A), there are authorized to be appropriated $1,192,920 for fiscal year 2004 to carry out sections 5505 and 5506.

        ‘(C) ALLOCATION OF FUNDS- Of the amounts made available or appropriated under this paragraph--

          ‘(i) $1,988,200 shall be available for grants under 5506(f)(5) to the institution identified in section 5505(j)(3)(E), as in effect on the day before the date of enactment of the Federal Public Transportation Act of 2004;

          ‘(ii) $1,988,200 shall be available for grants under section 5505(d) to the institution identified in section 5505(j)(4)(A), as in effect on the date specified in clause (i); and

          ‘(iii) $1,988,200 shall be available for grants under section 5505(d) to the institution identified in section 5505(j)(4)(F), as in effect on the date specified in subclause (I).

        ‘(C) SPECIAL RULE- Nothing in this paragraph shall be construed to limit the transportation research conducted by the centers receiving financial assistance under this section.

      ‘(7) ADMINISTRATION-

        ‘(A) TRUST FUND- For fiscal year 2004, $60,043,640 shall be available from the Mass Transit Account of the Highway Trust Fund to carry out section 5334.

      ‘(B) GENERAL FUND- In addition to amounts made available under subparagraph (A), there are authorized to be appropriated $15,010,910 for fiscal year 2004 to carry out section 5334.

      ‘(8) GRANTS AS CONTRACTUAL OBLIGATIONS-

      ‘(A) GRANTS FINANCED FROM HIGHWAY TRUST FUND- A grant or contract that is approved by the Secretary and financed with amounts made available under paragraph (1)(A), (2)(A), (3)(A), (4)(A), (5)(A), (6)(A), or (7)(A) is a contractual obligation of the United States Government to pay the Federal share of the cost of the project.

        ‘(B) GRANTS FINANCED FROM GENERAL FUND- A grant or contract that is approved by the Secretary and financed with amounts appropriated in advance under paragraph (1)(B), (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), or (7)(B) is a contractual obligation of the United States Government to pay the Federal share of the cost of the project only to the extent that amounts are appropriated for such purpose by an Act of Congress.

      ‘(9) AVAILABILITY OF AMOUNTS- Amounts made available or appropriated under paragraphs (1) through (6) shall remain available until expended.’.

    ‘(b) FORMULA GRANTS AND RESEARCH-

      ‘(1) IN GENERAL- There shall be available from the Mass Transit Account of the Highway Trust Fund to carry out sections 5307, 5308, 5309, 5310 through 5316, 5322, 5335, 5340, and 5505 of this title, and sections 3037 and 3038 of the Federal Transit Act of 1998 (112 Stat. 387 et seq.)--

        ‘(A) $6,262,600,000 for fiscal year 2005;

        ‘(B) $6,577,629,000 for fiscal year 2006;

        ‘(C) $6,950,400,000 for fiscal year 2007;

        ‘(D) $7,594,760,000 for fiscal year 2008; and

        ‘(E) $8,275,320,000 for fiscal year 2009.

      ‘(2) ALLOCATION OF FUNDS- Of the amounts made available under paragraph (1) for each fiscal year--

        ‘(A) 0.092 percent shall be available for grants to the Alaska Railroad under section 5307 for improvements to its passenger operations;

        ‘(B) 1.75 percent shall be available to carry out section 5308;

        ‘(C) 2.05 percent shall be available to provide financial assistance for job access and reverse commute projects under section 3037 of the Federal Transit Act of 1998 (49 U.S.C. 5309 note);

        ‘(D) 3.00 percent shall be available to provide financial assistance for services for elderly persons and persons with disabilities under section 5310;

        ‘(E) 0.125 percent shall be available to carry out section 3038 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note);

        ‘(F) 6.25 percent shall be available to provide financial assistance for other than urbanized areas under section 5311;

        ‘(G) 0.89 percent shall be available to carry out transit cooperative research programs under section 5313, the National Transit Institute under section 5315, university research centers under section 5505, and national research programs under sections 5312, 5313, 5314, and 5322, of which--

          ‘(i) 17.0 percent shall be allocated to carry out transit cooperative research programs under section 5313;

          ‘(ii) 7.5 percent shall be allocated to carry out programs under the National Transit Institute under section 5315, including not more than $1,000,000 to carry out section 5315(a)(16);

          ‘(iii) 11.0 percent shall be allocated to carry out the university centers program under section 5505; and

          ‘(iv) any funds made available under this subparagraph that are not allocated under clauses (i) through (iii) shall be allocated to carry out national research programs under sections 5312, 5313, 5314, and 5322;

        ‘(H) $25,000,000 shall be available for each of the fiscal years 2005 through 2009 to carry out section 5316;

        ‘(I) there shall be available to carry out section 5335--

          ‘(i) $3,700,000 in fiscal year 2005;

          ‘(ii) $3,900,000 in fiscal year 2006;

          ‘(iii) $4,200,000 in fiscal year 2007;

          ‘(iv) $4,600,000 in fiscal year 2008; and

          ‘(v) $5,000,000 in fiscal year 2009;

        ‘(J) 6.25 percent 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; and

        ‘(K) 22.0 percent shall be allocated in accordance with section 5337 to provide financial assistance under section 5309(i)(3); and

        ‘(L) any amounts not made available under subparagraphs (A) through (K) shall be allocated in accordance with section 5336 to provide financial assistance for urbanized areas under section 5307.

      ‘(3) UNIVERSITY CENTERS PROGRAM-

        ‘(A) ALLOCATION- Of the amounts allocated under paragraph (2)(G)(iii), $1,000,000 shall be available in each of the fiscal years 2005 through 2009 for Morgan State University to provide transportation research, training, and curriculum development.

        ‘(B) REQUIREMENTS- The university specified under subparagraph (A) shall be considered a University Transportation Center under section 510 of title 23, and shall be subject to the requirements under subsections (c), (d), (e), and (f) of such section.

        ‘(C) REPORT- In addition to the report required under section 510(e)(3) of title 23, the university specified under subparagraph (A) shall annually submit a report to the Secretary that describes the university’s contribution to public transportation.

      ‘(4) BUS GRANTS- In addition to the amounts made available under paragraph (1), there shall be available from the Mass Transit Account of the Highway Trust Fund to carry out section 5309(i)(2)(B)--

        ‘(A) $839,829,000 for fiscal year 2005;

        ‘(B) $882,075,000 for fiscal year 2006;

        ‘(C) $932,064,000 for fiscal year 2007;

        ‘(D) $1,018,474,000 for fiscal year 2008; and

        ‘(E) $1,109,739,000 for fiscal year 2009.

    ‘(c) MAJOR CAPITAL INVESTMENT GRANTS- There are authorized to be appropriated to carry out section 5309(i)(2)(A)--

      ‘(1) $1,461,072,000 for fiscal year 2005;

      ‘(2) $1,534,568,000 for fiscal year 2006;

      ‘(3) $1,621,536,000 for fiscal year 2007;

      ‘(4) $1,771,866,000 for fiscal year 2008; and

      ‘(5) $1,930,641,000 for fiscal year 2009.

    ‘(d) ADMINISTRATION- There shall be available from the Mass Transit Account of the Highway Trust Fund to carry out section 5334--

      ‘(1) $86,500,000 for fiscal year 2005;

      ‘(2) $90,851,000 for fiscal year 2006;

      ‘(3) $96,000,000 for fiscal year 2007;

      ‘(4) $104,900,000 for fiscal year 2008; and

      ‘(5) $114,300,000 for fiscal year 2009.

    ‘(e) GRANTS AS CONTRACTUAL OBLIGATIONS-

      ‘(1) MASS TRANSIT ACCOUNT FUNDS- A grant or contract approved by the Secretary that is financed with amounts made available under subsection (b)(1) or (d) is a contractual obligation of the United States Government to pay the Federal share of the cost of the project.

      ‘(2) APPROPRIATED FUNDS- A grant or contract approved by the Secretary that is financed with amounts made available under subsection (b)(2) or (c) is a contractual obligation of the United States Government to pay the Federal share of the cost of the project only to the extent that amounts are appropriated in advance for such purpose by an Act of Congress.

    ‘(f) AVAILABILITY OF AMOUNTS- Amounts made available by or appropriated under subsections (b) and (c) shall remain available until expended.’.

SEC. 3038. APPORTIONMENTS BASED ON GROWING STATES FORMULA FACTORS.

    (a) IN GENERAL- Chapter 53 is amended by adding at the end the following:

‘Sec. 5340. Apportionments based on growing States and high density State formula factors

    ‘(a) ALLOCATION- Of the amounts made available for each fiscal year under section 5338(b)(2)(J), the Secretary shall apportion--

      ‘(1) 50 percent to States and urbanized areas in accordance with subsection (b); and

      ‘(2) 50 percent to States and urbanized areas in accordance with subsection (c).

    ‘(b) GROWING STATE APPORTIONMENTS-

      ‘(1) APPORTIONMENT AMONG STATES- The amounts apportioned under paragraph (a)(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 subsection (b)(2)(A) so that each urbanized area receives an amount equal to the amount apportioned under subsection (b)(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.

    ‘(c) HIGH DENSITY STATE APPORTIONMENTS- Amounts to be apportioned under subsection (a)(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 the product of the urban land area of urbanized areas in the State times 370 persons per square mile.

      ‘(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 BETWEEN URBANIZED AREAS AND OTHER THAN URBANIZED AREAS IN EACH STATE-

        ‘(A) IN GENERAL- The Secretary shall apportion amounts apportioned to each State under paragraph (4) 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 population of all urbanized areas in that State divided by the total population of that State.

        ‘(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.

      ‘(6) APPORTIONMENTS AMONG URBANIZED AREAS IN EACH STATE- The Secretary shall apportion amounts made available to urbanized areas in each State under subsection (c)(5)(A) so that each urbanized area receives an amount equal to the amount apportioned under subsection (c)(5)(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.’.

    (b) CONFORMING AMENDMENT- The table of sections for chapter 53 is amended by adding at the end the following:

      ‘5340. Apportionments based on growing States and high density States formula factors.’.

SEC. 3039. JOB ACCESS AND REVERSE COMMUTE GRANTS.

    Section 3037 of the Federal Transit Act of 1998 (49 U.S.C. 5309 note) is amended--

      (1) in subsection (b)--

        (A) in paragraph (1)--

          (i) by striking ‘means an individual’ and inserting the following: ‘means--

        ‘(A) an individual’; and

          (ii) by striking the period at the end and inserting ‘; or

        ‘(B) an individual who is eligible for assistance under the State program of Temporary Assistance to Needy Families funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et. seq.) in the State in which the recipient of a grant under this section is located.’; and

        (B) in paragraph (2), by striking ‘development of’ each place it appears and inserting ‘development and provision of’;

      (2) in subsection (i), by amending paragraph (2) to read as follows:

      ‘(2) COORDINATION-

        ‘(A) IN GENERAL- The Secretary shall coordinate activities under this section with related activities under programs of other Federal departments and agencies.

        ‘(B) CERTIFICATION- A recipient of funds under this section shall certify that--

          ‘(i) the project has been derived from a locally developed, coordinated public transit human services transportation plan; and

          ‘(ii) the plan was developed through a process that included representatives of public, private, and nonprofit transportation and human services providers and participation by the public.’;

      (3) by amending subsection (j) to read as follows:

    ‘(j) GRANT REQUIREMENTS-

      ‘(1) IN GENERAL-

        ‘(A) URBANIZED AREAS- A grant awarded under this section to a public agency or private company engaged in public transportation in an urbanized area shall be subject to the all of the terms and conditions to which a grant awarded under section 5307 of title 49, United States Code, is subject, to the extent the Secretary considers appropriate.

        ‘(B) OTHER THAN URBANIZED AREAS- A grant awarded under this section to a public agency or a private company engaged in public transportation in an area other than urbanized areas shall be subject to all of the terms and conditions to which a grant awarded under section 5311 of title 49, United States Code, is subject, to the extent the Secretary considers appropriate.

        ‘(C) NONPROFIT ORGANIZATIONS- A grant awarded under this section to a private nonprofit organization shall be subject to all of the terms and conditions to which a grant made under section 5310 of title 49, United States Code, is subject, to the extent the Secretary considers appropriate.

      ‘(2) SPECIAL WARRANTY-

        ‘(A) IN GENERAL- Section 5333(b) of title 49, United States Code, shall apply to grants under this section if the Secretary of Labor utilizes a Special Warranty that provides a fair and equitable arrangement to protect the interests of employees.

        ‘(B) WAIVER- The Secretary may waive the applicability of the Special Warranty under subparagraph (A) for private non-profit recipients on a case-by-case basis as the Secretary considers appropriate.’; and

      (4) by striking subsections (k) and (l).

SEC. 3040. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.

    (a) SECTION HEADING- The section heading for section 3038 of the Federal Transit Act of 1998 (49 U.S.C. 5310 note), is amended to read as follows:

‘SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.’.

    (b) FUNDING- Section 3038(g) of the Federal Transit Act of 1998 (49 U.S.C. 5310 note) is amended to read as follows:

    ‘(g) FUNDING- Of the amounts made available for each fiscal year under subsections (a)(1)(C)(iii) and (b)(2)(E) of section 5338 of title 49, United States Code--

      ‘(1) 75 percent shall be available, and shall remain available until expended, for operators of over-the-road buses, used substantially or exclusively in intercity, fixed-route over-the-road bus service, to finance the incremental capital and training costs of the Department of Transportation’s final rule regarding accessibility of over-the-road buses; and

      ‘(2) 25 percent shall be available, and shall remain available until expended, for operators of over-the-road bus service not described in paragraph (1), to finance the incremental capital and training costs of the Department of Transportation’s final rule regarding accessibility of over-the-road buses.’.

    (b) CONFORMING AMENDMENT- The item relating to section 3038 in the table of contents for the Transportation Equity Act for the 21st Century (Public Law 105-178) is amended to read as follows:

      ‘Sec. 3038. Over-the-road bus accessibility program.’.

SEC. 3041. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC LANDS.

    (a) IN GENERAL- Chapter 53 is amended by inserting after section 5315 the following:

‘Sec. 5316. Alternative transportation in parks and public lands

    ‘(a) IN GENERAL-

      ‘(1) AUTHORIZATION-

        ‘(A) IN GENERAL- The Secretary, in consultation with the Secretary of the Interior, may award a grant or enter into a contract, cooperative agreement, interagency agreement, intraagency agreement, or other transaction to carry out a qualified project under this section to enhance the protection of America’s National Parks and public lands and increase the enjoyment of those visiting the parks and public lands by ensuring access to all, including persons with disabilities, improving conservation and park and public land opportunities in urban areas through partnering with state and local governments, and improving park and public land transportation infrastructure.

        ‘(B) CONSULTATION WITH OTHER AGENCIES- To the extent that projects are proposed or funded in eligible areas that are not within the jurisdiction of the Department of the Interior, the Secretary of the Interior shall consult with the heads of the relevant Federal land management agencies in carrying out the responsibilities under this section.

      ‘(2) USE OF FUNDS- A grant, cooperative agreement, interagency agreement, intraagency agreement, or other transaction for a qualified project under this section shall be available to finance the leasing of equipment and facilities for use in public transportation, subject to any regulation that the Secretary may prescribe limiting the grant or agreement to leasing arrangements that are more cost-effective than purchase or construction.

    ‘(b) DEFINITIONS- As used in this section, the following definitions shall apply:

      ‘(1) ELIGIBLE AREA- The term ‘eligible area’ means any federally owned or managed park, refuge, or recreational area that is open to the general public, including--

        ‘(A) a unit of the National Park System;

        ‘(B) a unit of the National Wildlife Refuge System;

        ‘(C) a recreational area managed by the Bureau of Land Management; and

        ‘(D) a recreation area managed by the Bureau of Reclamation.

      ‘(2) FEDERAL LAND MANAGEMENT AGENCY- The term ‘Federal land management agency’ means a Federal agency that manages an eligible area.

      ‘(3) ALTERNATIVE TRANSPORTATION- The term ‘alternative transportation’ means transportation by bus, rail, or any other publicly or privately owned conveyance that provides to the public general or special service on a regular basis, including sightseeing service.

      ‘(4) QUALIFIED PARTICIPANT- The term ‘qualified participant’ means--

        ‘(A) a Federal land management agency; or

        ‘(B) a State, tribal, or local governmental authority with jurisdiction over land in the vicinity of an eligible area acting with the consent of the Federal land management agency, alone or in partnership with a Federal land management agency or other Governmental or nongovernmental participant.

      ‘(5) QUALIFIED PROJECT- The term ‘qualified project’ means a planning or capital project in or in the vicinity of an eligible area that--

        ‘(A) is an activity described in section 5302, 5303, 5304, 5308, or 5309(a)(1)(A);

        ‘(B) involves--

          ‘(i) the purchase of rolling stock that incorporates clean fuel technology or the replacement of buses of a type in use on the date of enactment of this section with clean fuel vehicles; or

          ‘(ii) the deployment of alternative transportation vehicles that introduce innovative technologies or methods;

        ‘(C) relates to the capital costs of coordinating the Federal land management agency public transportation systems with other public transportation systems;

        ‘(D) provides a nonmotorized transportation system (including the provision of facilities for pedestrians, bicycles, and nonmotorized watercraft);

        ‘(E) provides waterborne access within or in the vicinity of an eligible area, as appropriate to and consistent with this section; or

        ‘(F) is any other alternative transportation project that--

          ‘(i) enhances the environment;

          ‘(ii) prevents or mitigates an adverse impact on a natural resource;

          ‘(iii) improves Federal land management agency resource management;

          ‘(iv) improves visitor mobility and accessibility and the visitor experience;

          ‘(v) reduces congestion and pollution (including noise pollution and visual pollution); or

          ‘(vi) conserves a natural, historical, or cultural resource (excluding rehabilitation or restoration of a non-transportation facility).

    ‘(c) FEDERAL AGENCY COOPERATIVE ARRANGEMENTS- The Secretary shall develop cooperative arrangements with the Secretary of the Interior that provide for--

      ‘(1) technical assistance in alternative transportation;

      ‘(2) interagency and multidisciplinary teams to develop Federal land management agency alternative transportation policy, procedures, and coordination; and

      ‘(3) the development of procedures and criteria relating to the planning, selection, and funding of qualified projects and the implementation and oversight of the program of projects in accordance with this section.

    ‘(d) LIMITATION ON USE OF AVAILABLE AMOUNTS-

      ‘(1) IN GENERAL- The Secretary, in consultation with the Secretary of the Interior, may use not more than 10 percent of the amount made available for a fiscal year under section 5338(a)(2)(I) to carry out planning, research, and technical assistance under this section, including the development of technology appropriate for use in a qualified project.

      ‘(2) ADDITIONAL AMOUNTS- Amounts made available under this subsection are in addition to amounts otherwise available to the Secretary to carry out planning, research, and technical assistance under this title or any other provision of law.

      ‘(3) MAXIMUM AMOUNT- No qualified project shall receive more than 12 percent of the total amount made available to carry out this section under section 5338(a)(2)(I) for any fiscal year.

    ‘(e) PLANNING PROCESS- In undertaking a qualified project under this section,

      ‘(1) if the qualified participant is a Federal land management agency--

        ‘(A) the Secretary, in cooperation with the Secretary of the Interior, shall develop transportation planning procedures that are consistent with--

          ‘(i) the metropolitan planning provisions under section 5303 of this title;

          ‘(ii) the statewide planning provisions under section 5304 of this title; and

          ‘(iii) the public participation requirements under section 5307(e); and

        ‘(B) in the case of a qualified project that is at a unit of the National Park system, the planning process shall be consistent with the general management plans of the unit of the National Park system; and

      ‘(2) if the qualified participant is a State or local governmental authority, or more than one State or local governmental authority in more than one State, the qualified participant shall--

        ‘(A) comply with the metropolitan planning provisions under section 5303 of this title;

        ‘(B) comply with the statewide planning provisions under section 5304 of this title;

        ‘(C) comply with the public participation requirements under section 5307(e) of this title; and

        ‘(D) consult with the appropriate Federal land management agency during the planning process.

    ‘(f) COST SHARING-

      ‘(1) The Secretary, in cooperation with the Secretary of the Interior, shall establish the agency share of net project cost to be provided under this section to a qualified participant.

      ‘(2) In establishing the agency share of net project cost to be provided under this section, the Secretary shall consider--

        ‘(A) visitation levels and the revenue derived from user fees in the eligible area in which the qualified project is carried out;

        ‘(B) the extent to which the qualified participant coordinates with a public transportation authority or private entity engaged in public transportation;

        ‘(C) private investment in the qualified project, including the provision of contract services, joint development activities, and the use of innovative financing mechanisms;

        ‘(D) the clear and direct benefit to the qualified participant; and

        ‘(E) any other matters that the Secretary considers appropriate to carry out this section.

      ‘(3) Notwithstanding any other provision of law, Federal funds appropriated to any Federal land management agency may be counted toward the non-agency share of the net project cost of a qualified project.

    ‘(g) SELECTION OF QUALIFIED PROJECTS-

      ‘(1) The Secretary of the Interior, after consultation with and in cooperation with the Secretary, shall determine the final selection and funding of an annual program of qualified projects in accordance with this section.

      ‘(2) In determining whether to include a project in the annual program of qualified projects, the Secretary of the Interior shall consider--

        ‘(A) the justification for the qualified project, including the extent to which the qualified project would conserve resources, prevent or mitigate adverse impact, and enhance the environment;

        ‘(B) the location of the qualified project, to ensure that the selected qualified projects--

          ‘(i) are geographically diverse nationwide; and

          ‘(ii) include qualified projects in eligible areas located in both urban areas and rural areas;

        ‘(C) the size of the qualified project, to ensure that there is a balanced distribution;

        ‘(D) the historical and cultural significance of a qualified project;

        ‘(E) safety;

        ‘(F) the extent to which the qualified project would-

          ‘(i) enhance livable communities;

          ‘(ii) reduce pollution (including noise pollution, air pollution, and visual pollution);

          ‘(iii) reduce congestion; and

          ‘(iv) improve the mobility of people in the most efficient manner; and

        ‘(G) any other matters that the Secretary considers appropriate to carry out this section, including--

          ‘(i) visitation levels;

          ‘(ii) the use of innovative financing or joint development strategies; and

          ‘(iii) coordination with gateway communities.

    ‘(h) QUALIFIED PROJECTS CARRIED OUT IN ADVANCE-

      ‘(1) When a qualified participant carries out any part of a qualified project without assistance under this section in accordance with all applicable procedures and requirements, the Secretary, in consultation with the Secretary of the Interior, may pay the share of the net capital project cost of a qualified project if--

        ‘(A) the qualified participant applies for the payment;

        ‘(B) the Secretary approves the payment; and

        ‘(C) before carrying out that part of the qualified project, the Secretary approves the plans and specifications in the same manner as plans and specifications are approved for other projects assisted under this section.

      ‘(2)(A) The cost of carrying out part of a qualified project under paragraph (1) includes the amount of interest earned and payable on bonds issued by a State or local governmental authority, to the extent that proceeds of the bond are expended in carrying out that part.

      ‘(B) The rate of interest under this paragraph may not exceed the most favorable rate reasonably available for the qualified project at the time of borrowing.

      ‘(C) The qualified participant shall certify, in a manner satisfactory to the Secretary, that the qualified participant has exercised reasonable diligence in seeking the most favorable interest rate.

    ‘(i) RELATIONSHIP TO OTHER LAWS-

      ‘(1) SECTION 5307- A qualified participant under this section shall be subject to the requirements of sections 5307 and 5333(a) to the extent the Secretary determines to be appropriate.

      ‘(2) OTHER REQUIREMENTS- A qualified participant under this section is subject to any other terms, conditions, requirements, and provisions that the Secretary determines to be appropriate to carry out this section, including requirements for the distribution of proceeds on disposition of real property and equipment resulting from a qualified project assisted under this section.

      ‘(3) PROJECT MANAGEMENT PLAN- If the amount of assistance anticipated to be required for a qualified project under this section is not less than $25,000,000--

        ‘(A) the qualified project shall, to the extent the Secretary considers appropriate, be carried out through a full funding grant agreement, in accordance with section 5309(g); and

        ‘(B) the qualified participant shall prepare a project management plan in accordance with section 5327(a).

    ‘(i) ASSET MANAGEMENT- The Secretary, in consultation with the Secretary of the Interior, may transfer the interest of the Department of Transportation in, and control over, all facilities and equipment acquired under this section to a qualified participant for use and disposition in accordance with any property management regulations that the Secretary determines to be appropriate.

    ‘(j) COORDINATION OF RESEARCH AND DEPLOYMENT OF NEW TECHNOLOGIES-

      ‘(1) The Secretary, in cooperation with the Secretary of the Interior, may undertake, or make grants, cooperative agreements, contracts (including agreements with departments, agencies, and instrumentalities of the Federal Government) or other transactions for research, development, and deployment of new technologies in eligible areas that will--

        ‘(A) conserve resources;

        ‘(B) prevent or mitigate adverse environmental impact;

        ‘(C) improve visitor mobility, accessibility, and enjoyment; and

        ‘(D) reduce pollution (including noise pollution and visual pollution).

      ‘(2) The Secretary may request and receive appropriate information from any source.

      ‘(3) Grants, cooperative agreements, contracts or other transactions under paragraph (1) shall be awarded from amounts allocated under subsection (c)(1).

    ‘(k) INNOVATIVE FINANCING- A qualified project receiving financial assistance under this section shall be eligible for funding through a state infrastructure bank or other innovative financing mechanism available to finance an eligible project under this chapter.

    ‘(l) REPORTS-

      ‘(1) IN GENERAL- The Secretary, in consultation with the Secretary of the Interior, shall annually submit a report on the allocation of amounts made available to assist qualified projects under this section to--

        ‘(A) the Committee on Banking, Housing, and Urban Affairs of the Senate; and

        ‘(B) the Committee on Transportation and Infrastructure of the House of Representatives.

      ‘(2) ANNUAL AND SUPPLEMENTAL REPORTS- The report required under paragraph (1) shall be included in the report submitted under section 5309(m).’.

    (b) CONFORMING AMENDMENTS- The table of sections for chapter 53 is amended by inserting after the item relating to section 5315 the following:

      ‘5316. Alternative transportation in parks and public lands.’.

SEC. 3042. OBLIGATION CEILING.

    Notwithstanding any other provision of law, the total of all obligations from amounts made available from the Mass Transit Account of the Highway Trust Fund by, and amounts appropriated under, subsections (a) through (c) of section 5338 of title 49, United States Code, shall not exceed--

      (1) $7,265,876,900 for fiscal year 2004;

      (2) $8,650,000,000 for fiscal year 2005;

      (3) $9,085,123,000 for fiscal year 2006;

      (4) $9,600,000,000 for fiscal year 2007;

      (5) $10,490,000,000 for fiscal year 2008; and

      (6) $11,430,000,000 for fiscal year 2009.

SEC. 3043. ADJUSTMENTS FOR THE SURFACE TRANSPORTATION EXTENSION ACT OF 2003.

    (a) IN GENERAL- Notwithstanding any other provision of law, the Secretary shall reduce the total apportionments and allocations made for fiscal year 2004 to each grant recipient under section 5338 of title 49, United States Code, by the amount apportioned to that recipient pursuant to section 8 of the Surface Transportation Extension Act of 2003 (117 Stat. 1121).

    (b) FIXED GUIDEWAY MODERNIZATION ADJUSTMENT- In making the apportionments described in subsection (a), the Secretary shall adjust the amount apportioned for fiscal year 2004 to each urbanized area for fixed guideway modernization to reflect the apportionment method set forth in 5337(a) of title 49, United States Code.

SEC. 3044. DISADVANTAGED BUSINESS ENTERPRISE.

    Section 1101(b) of the Transportation Equity Act of the 21st Century shall apply to all funds authorized or otherwise made available under this title.

SEC. 3045. INTERMODAL PASSENGER FACILITIES.

    (a) IN GENERAL- Chapter 55 of title 49, United States Code, is amended by adding at the end the following:

‘SUBCHAPTER III--INTERMODAL PASSENGER FACILITIES

Sec. 5571. Policy and purposes

    ‘(a) DEVELOPMENT AND ENHANCEMENT OF INTERMODAL PASSENGER FACILITIES- It is in the economic interest of the United States to improve the efficiency of public surface transportation modes by ensuring their connection with and access to intermodal passenger terminals, thereby streamlining the transfer of passengers among modes, enhancing travel options, and increasing passenger transportation operating efficiencies.

    ‘(b) GENERAL PURPOSES- The purposes of this subchapter are to accelerate intermodal integration among North America’s passenger transportation modes through--

      ‘(1) ensuring intercity public transportation access to intermodal passenger facilities;

      ‘(2) encouraging the development of an integrated system of public transportation information; and

      ‘(3) providing intercity bus intermodal passenger facility grants.

Sec. 5572. Definitions

    ‘In this subchapter--

      ‘(1) ‘capital project’ means a project for--

        ‘(A) acquiring, constructing, improving, or renovating an intermodal facility that is related physically and functionally to intercity bus service and establishes or enhances coordination between intercity bus service and transportation, including aviation, commuter rail, intercity rail, public transportation, seaports, and the National Highway System, such as physical infrastructure associated with private bus operations at existing and new intermodal facilities, including special lanes, curb cuts, ticket kiosks and counters, baggage and package express storage, employee parking, office space, security, and signage; and

        ‘(B) establishing or enhancing coordination between intercity bus service and transportation, including aviation, commuter rail, intercity rail, public transportation, and the National Highway System through an integrated system of public transportation information.

      ‘(2) ‘commuter service’ means service designed primarily to provide daily work trips within the local commuting area.

      ‘(3) ‘intercity bus service’ means regularly scheduled bus service for the general public which operates with limited stops over fixed routes connecting two or more urban areas not in close proximity, which has the capacity for transporting baggage carried by passengers, and which makes meaningful connections with scheduled intercity bus service to more distant points, if such service is available and may include package express service, if incidental to passenger transportation, but does not include air, commuter, water or rail service.

      ‘(4) ‘intermodal passenger facility’ means passenger terminal that does, or can be modified to, accommodate several modes of transportation and related facilities, including some or all of the following: intercity rail, intercity bus, commuter rail, intracity rail transit and bus transportation, airport limousine service and airline ticket offices, rent-a-car facilities, taxis, private parking, and other transportation services.

      ‘(5) ‘local governmental authority’ includes--

        ‘(A) a political subdivision of a State;

        ‘(B) an authority of at least one State or political subdivision of a State;

        ‘(C) an Indian tribe; and

        ‘(D) a public corporation, board, or commission established under the laws of the State.

      ‘(6) ‘owner or operator of a public transportation facility’ means an owner or operator of intercity-rail, intercity-bus, commuter-rail, commuter-bus, rail-transit, bus-transit, or ferry services.

      ‘(7) ‘recipient’ means a State or local governmental authority or a nonprofit organization that receives a grant to carry out this section directly from the Federal government.

      ‘(8) ‘Secretary’ means the Secretary of Transportation.

      ‘(9) ‘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.

      ‘(10) ‘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.

‘Sec. 5573. Assurance of access to intermodal passenger facilities

    ‘Intercity buses and other modes of transportation shall, to the maximum extent practicable, have access to publicly funded intermodal passenger facilities, including those passenger facilities seeking funding under section 5574.

‘Sec. 5574. Intercity bus intermodal passenger facility grants

    ‘(a) GENERAL AUTHORITY- The Secretary of Transportation may make grants under this section to recipients in financing a capital project only if the Secretary finds that the proposed project is justified and has adequate financial commitment.

    ‘(b) COMPETITIVE GRANT SELECTION- The Secretary shall conduct a national solicitation for applications for grants under this section. Grantees shall be selected on a competitive basis.

    ‘(c) SHARE OF NET PROJECT COSTS- A grant shall not exceed 50 percent of the net project cost, as determined by the Secretary.

    ‘(d) REGULATIONS- The Secretary may promulgate such regulations as are necessary to carry out this section.

‘Sec. 5575. Funding

    ‘(a) HIGHWAY ACCOUNT-

      ‘(1) There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this subchapter $10,000,000 for each of fiscal years 2005 through 2009.

      ‘(2) The funding made available under paragraph (1) shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23 and shall be subject to any obligation limitation imposed on funds for Federal-aid highways and highway safety construction programs.

    ‘(b) PERIOD OF AVAILABILITY- Amounts made available under subsection (a) shall remain available until expended.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 55 of title 49, United States Code, is amended by adding at the end the following:

‘SUBCHAPTER III--INTERMODAL PASSENGER FACILITIES

      Sec.

      ‘5571. Policy and Purposes.

      ‘5572. Definitions.

      ‘5573. Assurance of access to intermodal facilities.

      ‘5574. Intercity bus intermodal facility grants.

      ‘5575. Funding.’.

TITLE IV--SURFACE TRANSPORTATION SAFETY

SEC. 4001. SHORT TITLE.

    This title may be cited as the ‘Surface Transportation Safety Reauthorization Act of 2004’.

Subtitle A--Highway Safety

PART I--HIGHWAY SAFETY GRANT PROGRAM

SEC. 4101. SHORT TITLE; AMENDMENT OF TITLE 23, UNITED STATES CODE.

    (a) SHORT TITLE- This subpart may be cited as the ‘Highway Safety Grant Program Reauthorization Act of 2004’.

    (b) Amendment of Title 23, United States Code- Except as otherwise expressly provided, whenever in this subpart an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 23, United States Code.

SEC. 4102. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amounts for Fiscal Years 2004 Through 2009- There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to the Secretary of Transportation for the National Highway Traffic Safety Administration the following:

      (1) To carry out the Highway Safety Programs under section 402 of title 23, United States Code, $170,000,000 in fiscal year 2004, $174,000,000 in fiscal year 2005, $179,000,000 in fiscal year 2006, $185,000,000 in fiscal year 2007, $204,000,000 in fiscal year 2008, and $207,000,000 in fiscal year 2009.

      (2) To carry out the Highway Safety Research and Outreach Programs under section 403 of title 23, United States Code, $110,000,000 in fiscal year 2004, $112,000,000 in fiscal year 2005, $114,000,000 in fiscal year 2006, $116,000,000 in fiscal year 2007, $118,000,000 in fiscal year 2008, and $120,000,000 in fiscal year 2009.

      (3) To carry out the Occupant Protection Programs under section 405 of title 23, United States Code, $120,000,000 in fiscal year 2004, $122,000,000 in fiscal year 2005, $124,000,000 in fiscal year 2006, $126,000,000 in fiscal year 2007, $128,000,000 in fiscal year 2008, and $130,000,000 in fiscal year 2009.

      (4) To carry out the Emergency Medical Services Program under section 407A of title 23, United States Code, $5,000,000 in each of fiscal years 2004 through 2009.

      (5) To carry out the Impaired Driving Program under section 410 of title 23, United States Code, $85,000,000 in fiscal year 2004, $89,000,000 in fiscal year 2005, $93,000,000 in fiscal year 2006, $110,000,000 in fiscal year 2007, $126,000,000 in fiscal year 2008, and $130,000,000 in fiscal year 2009.

      (6) To carry out the State Traffic Safety Information System Improvements under section 412 of title 23, United States Code, $45,000,000 in each of fiscal years 2004 through 2009.

      (7) To carry out chapter 303 of title 49, United States Code, $4,000,000 for each of fiscal years 2004 through 2009.

    (b) PROHIBITION ON OTHER USES- Except as otherwise provided in this subtitle, the amounts allocated from the Highway Trust Fund for programs provided for in chapter 4 of title 23, United States Code, shall only be used for such programs and may not be used by States or local governments for construction purposes.

    (c) EFFECT OF REVENUE DEFICIENCY- If revenue to the Highway Trust Fund for a given fiscal year is lower than the amounts authorized by this subpart, any subsequent reductions in the overall funding for highway and transit programs shall not affect the highway safety programs provided for in chapter 4 of title 23, United States Code.

    (d) PROPORTIONAL INCREASES- For each fiscal year from 2004 through 2009, if revenue to the Highway Trust Fund increases above the amounts for each such fiscal year set forth in the fiscal year 2004 joint budget resolution, then the amounts made available in such year for the programs in sections 402, 405, and 410 shall increase by the same percentage.

SEC. 4103. HIGHWAY SAFETY PROGRAMS.

    (a) PROGRAMS TO BE INCLUDED-

      (1) MOTOR VEHICLE AIRBAGS PUBLIC AWARENESS- Section 402(a)(2) is amended by striking‘ vehicles and to increase public awareness of the benefit of motor vehicles equipped with airbags’ and inserting ‘vehicles,’.

      (2) AGRESSIVE DRIVING- Section 402(a) is further amended--

        (A) by redesignating clause (6) as clause (8);

        (B) by inserting after ‘involving school buses,’ at the end of clause (5) the following: ‘(6) to reduce aggressive driving and to educate drivers about defensive driving, (7) to reduce accidents resulting from fatigued and distracted drivers, including distractions arising from the use of electronic devices in vehicles,’; and

        (C) by inserting ‘aggressive driving, distracted driving,’ after ‘school bus accidents,’.

    (b) APPORTIONMENT-

      (1) TRIBAL GOVERNMENT PROGRAMS- Section 402(c) is amended by striking ‘three-fourths of 1 percent’ and inserting ‘2 percent’.

    (c) EXTRA FUNDING FOR OCCUPANT PROTECTION AND IMPAIRED DRIVING PROGRAMS- Section 402 is amended by inserting after subsection (g) the following:

    ‘(h) GRANTS- Funds available to States under this section may be used for making grants of financial assistance for programs and initiatives authorized by sections 405 and 410 of this title.’.

    (d) LAW ENFORCEMENT CHASE TRAINING- Section 402 is amended by adding at the end the following:

    ‘(l) LIMITATION RELATING TO LAW ENFORCEMENT VEHICULAR PURSUIT TRAINING- No State may receive any funds available for fiscal years after fiscal year 2004 for programs under this chapter until the State submits to the Secretary a written statement that the State actively encourages all relevant law enforcement agencies in that State to follow the guidelines established for police chases issued by the International Association of Chiefs of Police that are in effect on the date of enactment of the Highway Safety Grant Program Reauthorization Act of 2004, or as revised and in effect after that date as determined by the Secretary.

    ‘(m) CONSOLIDATION OF GRANT APPLICATIONS- The Secretary shall establish an approval process by which a State may apply for all grants included under this chapter through a single application with a single annual deadline. The Bureau of Indian Affairs shall establish a similarly simplified process for applications from Indian tribes.

    ‘(n) ADMINISTRATIVE EXPENSES- Funds authorized to be appropriated to carry out this section shall be subject to a deduction of not to exceed 5 percent for the necessary costs of administering the provisions of this section, section 405, section 407A, section 410, and 413 of this chapter.’.

SEC. 4104. HIGHWAY SAFETY RESEARCH AND OUTREACH PROGRAMS.

    (a) REVISED AUTHORITY AND REQUIREMENTS- Section 403 is amended to read as follows:

‘Sec. 403. Highway safety research and development

    ‘(a) AUTHORITY OF THE SECRETARY- The Secretary is authorized to use funds appropriated to carry out this section to--

      ‘(1) conduct research on all phases of highway safety and traffic conditions, including accident causation, highway or driver characteristics, communications, and emergency care;

      ‘(2) conduct ongoing research into driver behavior and its effect on traffic safety;

      ‘(3) conduct research on, and launch initiatives to counter, fatigued driving by drivers of motor vehicles and distracted driving in such vehicles, including the effect that the use of electronic devices and other factors deemed relevant by the Secretary have on driving;

      ‘(4) conduct training or education programs in cooperation with other Federal departments and agencies, States, private sector persons, highway safety personnel, and law enforcement personnel;

      ‘(5) conduct research on, and evaluate the effectiveness of, traffic safety countermeasures, including seat belts and impaired driving initiatives; and

      ‘(6) conduct demonstration projects.

    ‘(b) SPECIFIC RESEARCH PROGRAMS-

      ‘(1) REQUIRED PROGRAMS- The Secretary shall conduct research on the following:

        ‘(A) EFFECTS OF USE OF CONTROLLED SUBSTANCES- A study on the effects of the use of controlled substances on driver behavior to determine--

          ‘(i) methodologies for measuring driver impairment resulting from use of the most common controlled substances (including the use of such substances in combination with alcohol); and

          ‘(ii) effective and efficient methods for training law enforcement personnel to detect or measure the level of impairment of a driver who is under the influence of a controlled substance by the use of technology or otherwise.

        ‘(B) ON-SCENE MOTOR VEHICLE COLLISION CAUSATION- A nationally representative study to collect on-scene motor vehicle collision data, and to determine crash causation, for which the Secretary shall enter into a contract with the National Academy of Sciences to conduct a review of the research, design, methodology, and implementation of the study.

        ‘(C) TOLL FACILITIES WORKPLACE SAFETY- A study on the safety of highway toll collection facilities, including toll booths, conducted in cooperation with State and local highway safety organizations to determine the safety of highway toll collection facilities for the toll collectors who work in and around such facilities and to develop best practices that would be of benefit to State and local highway safety organizations. The study shall consider--

          ‘(i) any problems resulting from design or construction of facilities that contribute to the occurrence of vehicle collisions with the facilities;

          ‘(ii) the safety of crosswalks used by toll collectors in transit to and from toll booths;

          ‘(iii) the extent of the enforcement of speed limits at and in the vicinity of toll facilities;

          ‘(iv) the use of warning devices, such as vibration and rumble strips, to alert drivers approaching toll facilities;

          ‘(v) the use of cameras to record traffic violations in the vicinity of toll facilities;

          ‘(vi) the use of traffic control arms in the vicinity of toll facilities;

          ‘(vii) law enforcement practices and jurisdictional issues that affect safety at and in the vicinity of toll facilities; and

          ‘(viii) data (which shall be collected in conducting the research) regarding the incidence of accidents and injuries at and around toll booth facilities.

      ‘(2) TIME FOR COMPLETION OF STUDIES- The studies conducted in subparagraphs (A), (B), and (C) of paragraph (1) may be conducted in concert with other Federal departments and agencies with relevant expertise. The Secretary shall submit an annual report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the progress of each study conducted under this subsection.

      ‘(3) ONGOING STUDIES- The studies under subparagraphs (A) and (B) of paragraph (1) shall be conducted on an ongoing basis.

      ‘(4) REPORTS-

        ‘(A) ONE-TIME STUDY- Not later than 2 years after the date of enactment of the Highway Safety Grant Program Reauthorization Act of 2004, the Secretary shall submit a final report on the study referred to in paragraph (1)(C) to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.

        ‘(B) ONGOING STUDIES- The Secretary shall submit a report on the studies referred to in paragraph (3) to the Committees of Congress referred to in subparagraph (A) not later than December 31, 2005, and shall submit additional reports on such studies to such committees every 2 years. Such additional reports shall contain the findings, progress, remaining challenges, research objectives, and other relevant data relating to the ongoing studies.

      ‘(5) RESEARCH ON DISTRACTED, INATTENTIVE, AND FATIGUED DRIVERS- In conducting research under subsection (a)(3), the Secretary shall carry out not less than 5 demonstration projects to evaluate new and innovative means of combatting traffic system problems caused by distracted, inattentive, or fatigued drivers. The demonstration projects shall be in addition to any other research carried out under this subsection.

    ‘(c) NATIONWIDE TRAFFIC SAFETY CAMPAIGNS-

      ‘(1) REQUIREMENT FOR CAMPAIGNS- The Administrator of the National Highway Traffic Safety Administration shall establish and administer a program under which 3 high-visibility traffic safety law enforcement campaigns will be carried out for the purposes specified in paragraph (2) in each of years 2004 through 2009.

      ‘(2) PURPOSE- The purpose of each law enforcement campaign is to achieve either or both of the following objectives:

        ‘(A) Reduce alcohol-impaired or drug-impaired operation of motor vehicles.

        ‘(B) Increase use of seat belts by occupants of motor vehicles.

      ‘(3) ADVERTISING- The Administrator may use, or authorize the use of, funds available under this section to pay for the development, production, and use of broadcast and print media advertising in carrying out traffic safety law enforcement campaigns under this subsection. Consideration shall be given to advertising directed at non-English speaking populations, including those who listen, read, or watch nontraditional media.

      ‘(4) COORDINATION WITH STATES- The Administrator shall coordinate with the States in carrying out the traffic safety law enforcement campaigns under this subsection, including advertising funded under paragraph (3), with a view to--

        ‘(A) relying on States to provide the law enforcement resources for the campaigns out of funding available under this section and sections 402, 405, and 410 of this title; and

        ‘(B) providing out of National Highway Traffic Safety Administration resources most of the means necessary for national advertising and education efforts associated with the law enforcement campaigns.

      ‘(5) ANNUAL EVALUATION- The Secretary shall conduct an annual evaluation of the effectiveness of such initiatives.

      ‘(6) FUNDING- The Secretary shall use $24,000,000 in each of fiscal years 2004 through 2009 for advertising and educational initiatives to be carried out nationwide in support of the campaigns under this section.

    ‘(d) IMPROVING OLDER DRIVER SAFETY-

      ‘(1) IN GENERAL- Of the funds made available under this section, the Secretary shall allocate $2,000,000 in each of fiscal years 2004 through 2009 to conduct a comprehensive research and demonstration program to improve traffic safety pertaining to older drivers. The program shall--

        ‘(A) provide information and guidelines to assist physicians and other related medical personnel, families, licensing agencies, enforcement officers, and various public and transit agencies in enhancing the safety and mobility of older drivers;

        ‘(B) improve the scientific basis of medical standards and screenings strategies used in the licensing of all drivers in a non-discriminatory manner;

        ‘(C) conduct field tests to assess the safety benefits and mobility impacts of different driver licensing strategies and driver assessment and rehabilitation methods;

        ‘(D) assess the value and improve the safety potential of driver retraining courses of particular benefit to older drivers; and

        ‘(E) conduct other activities to accomplish the objectives of this action.

      ‘(2) FORMULATION OF PLAN- After consultation with affected parties, the Secretary shall formulate an older driver traffic safety plan to guide the design and implementation of this program. The plan shall be submitted to the House of Representatives Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and Transportation within 180 days after the date of enactment of the Highway Safety Grant Program Reauthorization Act of 2004.

    ‘(e) LAW ENFORCEMENT TRAINING-

      ‘(1) REQUIREMENT FOR PROGRAM- The Administrator of the National Highway Traffic Safety Administration shall carry out a program to train law enforcement personnel of each State and political subdivision thereof in police chase techniques that are consistent with the police chase guidelines issued by the International Association of Chiefs of Police.

      ‘(2) AMOUNT FOR PROGRAM- Of the amount available for a fiscal year to carry out this section, $200,000 shall be available for carrying out this subsection.

    ‘(f) INTERNATIONAL COOPERATION-

      ‘(1) AUTHORITY- The Administrator of the National Highway Traffic Safety Administration may participate and cooperate in international activities to enhance highway safety.

      ‘(2) AMOUNT FOR PROGRAM- Of the amount available for a fiscal year to carry out this section, $200,000 may be used for activities authorized under paragraph (1).’.

    (b) STUDY ON REFUSAL OF INTOXICATION TESTING-

      (1) REQUIREMENT FOR STUDY- In addition to studies under section 403 of title 23, United States Code, the Secretary of Transportation shall carry out a study of the frequency with which persons arrested for the offense of operating a motor vehicle under the influence of alcohol and persons arrested for the offense of operating a motor vehicle while intoxicated refuse to take a test to determine blood alcohol concentration levels and the effect such refusals have on the ability of States to prosecute such persons for those offenses.

      (2) CONSULTATION- In carrying out the study under this section, the Secretary shall consult with the Governors of the States, the States’ Attorneys General, and the United States Sentencing Commission.

      (3) REPORT-

        (A) REQUIREMENT FOR REPORT- Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report on the results of the study to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.

        (B) CONTENT- The report shall include any recommendation for legislation, including any recommended model State legislation, and any other recommendations that the Secretary considers appropriate for implementing a program designed to decrease the occurrence refusals by arrested persons to submit to a test to determine blood alcohol concentration levels.

SEC. 4105. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE TECHNICAL CORRECTION.

    Section 404(d) is amended by striking ‘Commerce’ and inserting ‘Transportation’.

SEC. 4106. OCCUPANT PROTECTION GRANTS.

    Section 405 is amended--

      (1) by striking the second sentence of subsection (a)(1);

      (2) by striking ‘Transportation Equity Act for the 21st Century.’ in subsection (a)(2) and inserting ‘Highway Safety Grant Program Reauthorization Act of 2004.’;

      (3) by striking subsections (a)(3) and (4), (b), (c), and (d) and redesignating subsections (e) and (f) as subsections (d) and (e), respectively; and

      (4) by inserting after subsection (a) the following:

    ‘(b) OCCUPANT PROTECTION GRANTS-

      ‘(1) IN GENERAL- In addition to the grants authorized by subsection (a), the Secretary shall make grants in accordance with this subsection.

      ‘(2) SAFETY BELT PERFORMANCE GRANTS-

        ‘(A) PRIMARY SAFETY BELT USE LAW-

          ‘(i) For fiscal years 2004 and 2005, the Secretary shall make a grant to each State that enacted, and is enforcing, a primary safety belt use law for all passenger motor vehicles that became effective by December 31, 2002.

          ‘(ii) For each of fiscal years 2004 through 2009, the Secretary shall, after making grants under clause (i) of this subparagraph, make a one-time grant to each State that either enacts for the first time after December 31, 2002, and has in effect a primary safety belt use law for all passenger motor vehicles, or, in the case of a State that does not have such a primary safety belt use law, has a State safety belt use rate in the preceding fiscal year of at least 90 percent, as measured under criteria determined by the Secretary.

          ‘(iii) Of the funds authorized for grants under this subsection, $100,000,000 in each of fiscal years 2004 through 2009 shall be available for grants under this paragraph. The amount of a grant available to a State in each of fiscal years 2004 and 2005 under clause (i) of this subparagraph shall be equal to 1/2 of the amount of funds apportioned to the State under section 402(c) for fiscal year 2003. The amount of a grant available to a State in fiscal year 2004 or in a subsequent fiscal year under clause (ii) of this subparagraph shall be equal to 5 times the amount apportioned to the State for fiscal year 2003 under section 402(c). A State that receives a grant under clause (ii) of this subparagraph is ineligible to receive funding under subparagraph (B) for that fiscal year and the following fiscal year. The Federal share payable for grants under this subparagraph shall be 100 percent. If the total amount of grants under clause (ii) of this subparagraph for a fiscal year exceeds the amount of funds available in the fiscal year, grants shall be made to each eligible State, in the order in which its primary safety belt use law became effective or its safety belt use rate reached 90 percent, until the funds for the fiscal year are exhausted. A State that does not receive a grant for which it is eligible in a fiscal year shall receive the grant in the succeeding fiscal year so long as its law remains in effect or its safety belt use rate remains at or above 90 percent. If the total amount of grants under this subparagraph for a fiscal year is less than the amount available in the fiscal year, the Secretary shall use any funds that exceed the total amount for grants under subparagraph (B) of this paragraph.

        ‘(B) SAFETY BELT USE RATE-

          ‘(i) For each fiscal year, from 2004 through 2009, the funds authorized for a grant under this subparagraph shall be awarded to States that increase their measured safety belt use rate, as determined by the Secretary, by decreasing the proportion of non-users of safety belts by 10 percent, as compared to the proportion of non-users, in the preceding fiscal year.

          ‘(ii) Each State that meets the requirement of clause (i) of this subparagraph shall be apportioned an amount of funds that is equal to the amount available under this subparagraph for the relevant fiscal year multiplied by the ratio that the funds apportioned to the State under section 402 for such fiscal year bear to the funds apportioned under section 402 for such fiscal year to all states that qualify for a grant for such fiscal year.

          ‘(iii) Of the funds authorized for grants under this subsection, $20,000,000 for fiscal year 2004, $22,000,000 for fiscal year 2005, $24,000,000 for fiscal year 2006, $26,000,000 for fiscal year 2007, $28,000,000 for fiscal year 2008, and $30,000,000 for fiscal year 2009 shall be available for safety belt use rate grants under this subparagraph.

          ‘(iv) The Federal share payable for grants under this subparagraph shall be 100 percent.

    ‘(c) USE OF GRANTS- A State allocated an amount for a grant under subparagraph (A) or (B) of subsection (b)(2) may use the amount for activities eligible for assistance under sections 402, 405, and 410 of this title.’.

SEC. 4107. SCHOOL BUS DRIVER TRAINING.

    Section 406(c) is amended by striking the first, second, and third sentences.

SEC. 4108. EMERGENCY MEDICAL SERVICES.

    (a) FEDERAL COORDINATION AND ENHANCED SUPPORT OF EMERGENCY MEDICAL SERVICES- Chapter 4 is amended by inserting after section 407 the following:

‘Sec. 407A. Federal coordination and enhanced support of emergency medical services

    ‘(a) FEDERAL INTERAGENCY COMMITTEE ON EMERGENCY MEDICAL SERVICES-

      ‘(1) ESTABLISHMENT- The Secretary of Transportation and the Secretary of Homeland Security, through the Under Secretary for Emergency Preparedness and Response, shall establish a Federal Interagency Committee on Emergency Medical Services. In establishing the Interagency Committee, the Secretary of Transportation and the Secretary of Homeland Security through the Under Secretary for Emergency Preparedness and Response shall consult with the Secretary of Health and Human Services.

      ‘(2) MEMBERSHIP- The Interagency Committee shall consist of the following officials, or their designees:

        ‘(A) The Administrator, National Highway Traffic Safety Administration.

        ‘(B) The Director, Preparedness Division, Emergency Preparedness and Response Directorate, Department of Homeland Security.

        ‘(C) The Administrator, Health Resources and Services Administration, Department of Health and Human Services.

        ‘(D) The Director, Centers for Disease Control and Prevention, Department of Health and Human Services.

        ‘(E) The Administrator, United States Fire Administration, Emergency Preparedness and Response Directorate, Department of Homeland Security.

        ‘(F) The Director, Center for Medicare and Medicaid Services, Department of Health and Human Services.

        ‘(G) The Undersecretary of Defense for Personnel and Readiness.

        ‘(H) The Director, Indian Health Service, Department of Health and Human Services.

        ‘(I) The Chief, Wireless Telecom Bureau, Federal Communications Commission.

        ‘(J) A representative of any other Federal agency identified by the Secretary of Transportation or the Secretary of Homeland Security through the Under Secretary for Emergency Preparedness and Response, in consultation with the Secretary of Health and Human Services, as having a significant role in relation to the purposes of the Interagency Committee.

      ‘(3) PURPOSES- The purposes of the Interagency Committee are as follows:

        ‘(A) To ensure coordination among the Federal agencies involved with State, local, tribal, or regional emergency medical services and 9-1-1 systems.

        ‘(B) To identify State, local, tribal, or regional emergency medical services and 9-1-1 needs.

        ‘(C) To recommend new or expanded programs, including grant programs, for improving State, local, tribal, or regional emergency medical services and implementing improved emergency medical services communications technologies, including wireless 9-1-1.

        ‘(D) To identify ways to streamline the process through which Federal agencies support State, local, tribal or regional emergency medical services.

        ‘(E) To assist State, local, tribal or regional emergency medical services in setting priorities based on identified needs.

        ‘(F) To advise, consult, and make recommendations on matters relating to the implementation of the coordinated State emergency medical services programs.

      ‘(4) ADMINISTRATION- The Administrator of the National Highway Traffic Safety Administration, in cooperation with the Director, Preparedness Division, Emergency Preparedness and Response Directorate, Department of Homeland Security, shall provide administrative support to the Interagency Committee, including scheduling meetings, setting agendas, keeping minutes and records, and producing reports.

      ‘(5) LEADERSHIP- The members of the Interagency Committee shall select a chairperson of the Committee annually.

      ‘(6) MEETINGS- The Interagency Committee shall meet as frequently as is determined necessary by the chairperson of the Committee.

      ‘(7) ANNUAL REPORTS- The Interagency Committee shall prepare an annual report to Congress on the Committee’s activities, actions, and recommendations.

    ‘(b) COORDINATED NATIONWIDE EMERGENCY MEDICAL SERVICES PROGRAM-

      ‘(1) PROGRAM REQUIREMENT- The Secretary of Transportation, acting through the Administrator of the National Highway Traffic Safety Administration, shall coordinate with officials of other Federal departments and agencies, and may assist State and local governments and emergency medical services organizations (whether or not a firefighter organization), private industry, and other interested parties, to ensure the development and implementation of a coordinated nationwide emergency medical services program that is designed to strengthen transportation safety and public health and to implement improved emergency medical services communication systems, including 9-1-1.

      ‘(2) COORDINATED STATE EMERGENCY MEDICAL SERVICES PROGRAM- Each State shall establish a program, to be approved by the Secretary, to coordinate the emergency medical services and resources deployed throughout the State, so as to ensure--

        ‘(A) improved emergency medical services communication systems, including 9-1-1;

        ‘(B) utilization of established best practices in system design and operations;

        ‘(C) implementation of quality assurance programs; and

        ‘(D) incorporation of data collection and analysis programs that facilitate system development and data linkages with other systems and programs useful to emergency medical services.

      ‘(3) ADMINISTRATION OF STATE PROGRAMS- The Secretary may not approve a coordinated State emergency medical services program under this subsection unless the program--

        ‘(A) provides that the Governor of the State is responsible for its administration through a State office of emergency medical services that has adequate powers and is suitably equipped and organized to carry out such program and coordinates such program with the highway safety office of the State; and

        ‘(B) authorizes political subdivisions of the State to participate in and receive funds under such program, consistent with a goal of achieving statewide coordination of emergency medical services and 9-1-1 activities.

      ‘(4) FUNDING-

        ‘(A) USE OF FUNDS- Funds authorized to be appropriated to carry out this subsection shall be used to aid the States in conducting coordinated emergency medical services and 9-1-1 programs as described in paragraph (2).

        ‘(B) APPORTIONMENT-

          ‘(i) APPORTIONMENT FORMULA- The funds shall be apportioned as follows: 75 percent in the ratio that the population of each State bears to the total population of all the States, as shown by the latest available Federal census, and 25 percent in the ratio that the public road mileage in each State bears to the total public road mileage in all States. For the purpose of this subparagraph, a ‘public road’ means any road under the jurisdiction of and maintained by a public authority and open to public travel. Public road mileage as used in this subsection shall be determined as of the end of the calendar year prior to the year in which the funds are apportioned and shall be certified by the Governor of the State and subject to approval by the Secretary.

          ‘(ii) MINIMUM APPORTIONMENT- The annual apportionment to each State shall not be less than 1/2 of 1 percent of the total apportionment, except that the apportionment to the Secretary of the Interior on behalf of Indian tribes shall not be less than 3/4 of 1 percent of the total apportionment, and the apportionments to the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands shall not be less than 1/4 of 1 percent of the total apportionment.

      ‘(5) APPLICABILITY OF CHAPTER 1- Section 402(d) of this title shall apply in the administration of this subsection.

      ‘(6) FEDERAL SHARE- The Federal share of the cost of a project or program funded under this subsection shall be 80 percent.

      ‘(7) APPLICATION IN INDIAN COUNTRY-

        ‘(A) USE OF TERMS- For the purpose of application of this subsection in Indian country, the terms ‘State’ and ‘Governor of the State’ include the Secretary of the Interior and the term ‘political subdivisions of the State’ includes an Indian tribe.

        ‘(B) INDIAN COUNTRY DEFINED- In this subsection, the term ‘Indian country’ means--

          ‘(i) all land within the limits of any Indian reservation under the jurisdiction of the United States, notwithstanding the issuance of any patent and including rights-of-way running through the reservation;

          ‘(ii) all dependent Indian communities within the borders of the United States, whether within the original or subsequently acquired territory thereof and whether within or without the limits of a State; and

          ‘(iii) all Indian allotments, the Indian titles to which have not been extinguished, including rights-of-way running through such allotments.

    ‘(c) STATE DEFINED- In this section, the term ‘State’ means each of the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Secretary of the Interior on behalf of Indian tribes.

    ‘(d) CONSTRUCTION WITH RESPECT TO DISTRICT OF COLUMBIA- In the administration of this section with respect to the District of Columbia, a reference in this section to the Governor of a State shall refer to the Mayor of the District of Columbia.’.

    (b) CLERICAL AMENDMENT- The chapter analysis for chapter 4 is amended by inserting after the item relating to section 407 the following:

      ‘407A. Federal coordination and enhanced support of emergency medical services.’.

SEC. 4109. REPEAL OF AUTHORITY FOR ALCOHOL TRAFFIC SAFETY PROGRAMS.

    (a) REPEAL- Section 408 is repealed.

    (b) CLERICAL AMENDMENT- The chapter analysis for chapter 4 is amended by striking the item relating to section 408.

SEC. 4110. IMPAIRED DRIVING PROGRAM.

    (a) MAINTENANCE OF EFFORT- Section 410(a)(2) is amended by striking ‘the Transportation Equity Act for the 21st Century’ and inserting ‘the Highway Safety Grant Program Reauthorization Act of 2004’.

    (b) REVISED GRANT AUTHORITY- Section 410 is amended--

      (1) by striking paragraph (3) of subsection (a) and redesignating paragraph (4) as paragraph (3); and

      (2) by striking subsections (b) through (f) and inserting the following:

    ‘(b) PROGRAM-RELATED ELIGIBILITY REQUIREMENTS- To be eligible for a grant under this section, a State shall--

      ‘(1) carry out each of the programs and activities required under subsection (c);

      ‘(2) comply with the additional requirements set forth in subsection (d) with respect to such programs and activities; and

      ‘(3) comply with any additional requirements of the Secretary.

    ‘(c) REQUIRED STATE PROGRAMS AND ACTIVITIES- For the purpose of subsection (b)(1), a State must meet the requirements of 4 of the following 6 criteria in order to receive a grant under this section:

      ‘(1) CHECK-POINT, SATURATION PATROL PROGRAM-

        ‘(A) A State program to conduct of a series of high-visibility, Statewide law enforcement campaigns in which law enforcement personnel monitor for impaired driving, either through use of check-points or saturation patrols, on a nondiscriminatory, lawful basis for the purpose of determining whether the operators of the motor vehicles are driving while under the influence of alcohol or controlled substances that meets the requirements of subparagraphs (B) and (C).

        ‘(B) A program meets the requirements of this subparagraph only if a State organizes the campaigns in cooperation with related national campaigns organized by the National Highway Traffic Safety Administration, but this subparagraph does not preclude a State from initiating high-visibility, Statewide law enforcement campaigns independently of the cooperative efforts.

        ‘(C) A program meets the requirements of this subparagraph only if, for each fiscal year, a State demonstrates to the Secretary that the State and the political subdivisions of the State that receive funds under this section have increased, in the aggregate, the total number of impaired driving law enforcement activities, as described in subparagraph (A) (or any other similar activity approved by the Secretary), initiated in such State during the preceding fiscal year by a factor that the Secretary determines meaningful for the State over the number of such activities initiated in such State during the preceding fiscal year, which shall not be less than 5 percent.

      ‘(2) PROSECUTION AND ADJUDICATION PROGRAM- For grants made during fiscal years after fiscal year 2004, a State prosecution and adjudication program under which--

        ‘(A) judges and prosecutors are actively encouraged to prosecute and adjudicate cases of defendants who repeatedly commit impaired driving offenses by reducing the use of State diversion programs, or other means that have the effect of avoiding or expunging a permanent record of impaired driving in such cases;

        ‘(B) the courts in a majority of the judicial jurisdictions of the State are monitored on the courts’ adjudication of cases of impaired driving offenses; or

        ‘(C) annual Statewide outreach is provided for judges and prosecutors on innovative approaches to the prosecution and adjudication of cases of impaired driving offenses that have the potential for significantly improving the prosecution and adjudication of such cases.

      ‘(3) IMPAIRED OPERATOR INFORMATION SYSTEM-

        ‘(A) A State impaired operator information system that--

          ‘(i) tracks drivers who are arrested or convicted for violation of laws prohibiting impaired operation of motor vehicles;

          ‘(ii) includes information about each case of an impaired driver beginning at the time of arrest through case disposition, including information about any trial, plea, plea agreement, conviction or other disposition, sentencing or other imposition of sanctions, and substance abuse treatment;

          ‘(iii) provides--

            ‘(I) accessibility to the information for law enforcement personnel Statewide and for United States law enforcement personnel; and

            ‘(II) linkage for the sharing of the information and of the information in State traffic record systems among jurisdictions and appropriate agencies, court systems and offices of the States;

          ‘(iv) shares information with the National Highway Traffic Safety Administration for compilation and use for the tracking of impaired operators of motor vehicles who move from State to State; and

          ‘(v) meets the requirements of subparagraphs (B), (C), and (D) of this paragraph, as applicable.

        ‘(B) A program meets the requirements of this subparagraph only if, during fiscal years 2004 and 2005, a State--

          ‘(i) assesses the system used by the State for tracking drivers who are arrested or convicted for violation of laws prohibiting impaired operation of motor vehicles;

          ‘(ii) identifies ways to improve the system, as well as to enhance the capability of the system to provide information in coordination with impaired operator information systems of other States; and

          ‘(iii) develops a strategic plan that sets forth the actions to be taken and the resources necessary to achieve the identified improvements and to enhance the capability for coordination with the systems of other States.

        ‘(C) A program meets the requirements of this subparagraph only if, in each of fiscal years 2006, 2007, and 2008, a State demonstrates to the Secretary that the State has made substantial and meaningful progress in improving the State’s impaired operator information system, and makes public a report on the progress of the information system.

        ‘(D) A program meets the requirements of this subparagraph only if, in fiscal year 2009, a State demonstrates to the Secretary that the State’s impaired operator information system meets the basic standards for such systems as determined by the Secretary.

      ‘(4) IMPAIRED DRIVING PERFORMANCE- The percentage of fatally-injured drivers with 0.08 percent or greater blood alcohol concentration in the State has decreased in each of the 2 most recent calendar years.

      ‘(5) IMPAIRED DRIVING TASK FORCE- (A) Establishment of an impaired driving task force that involves all relevant State, tribal, and local agencies responsible for reducing alcohol impairment and impaired driving and meets the requirements of subparagraphs (B), (C), and (D). The purpose of the task force is to oversee efforts to reduce impaired driving by strengthening applicable laws, regulations, programs, and policies, and to coordinate impaired driving resources and programs among different jurisdictions. The impaired driving task force shall include State, Tribal, and local law enforcement, motor carrier safety agencies, and State alcohol and drug abuse prevention agencies, State and local court systems, State drivers licensing agencies, the State highway safety office, and State parole and probation agencies.

      ‘(B) In fiscal year 2004 and fiscal year 2005, the State shall establish a statewide impaired driving task force to assess the State’s impaired driving system, identify the opportunities for improvements in the system, and develop a strategic plan that outlines the steps and resources necessary to improve the system and enhance coordination among State and local agencies responsible for reducing impaired driving.

      ‘(C) In each subsequent fiscal year, the State demonstrates progress in the implementation of top priorities of the strategic plan.

      ‘(D) The State provides the Secretary a copy of the strategic plan developed under subparagraph and in subsequent years, a report detailing the progress of the strategic plan. The Secretary shall make available for public viewing each strategic plan and progress report.

      ‘(6) IMPAIRED DRIVING COURTS-

        ‘(A) IN GENERAL- A program to consolidate and coordinate impaired driving cases into courts that specialize in impaired driving cases, with the emphasis on tracking and processing offenders of impaired driving laws, (hereinafter referred to as DWI courts) that meets the requirements of this paragraph.

        ‘(B) CHARACTERISTICS- A DWI Court is a distinct function performed by a court system for the purpose of changing the behavior of alcohol or drug dependent offenders arrested for driving while impaired. A DWI Court can be a dedicated court with dedicated personnel, including judges, prosecutors and probation officers. A DWI court may be an existing court system that serves the following essential DWI Court functions:

          ‘(i) A DWI Court performs an assessment of high-risk offenders utilizing a team headed by the judge and including all criminal justice stakeholders (prosecutors, defense attorneys, probations officers, law enforcement personnel and others) along with alcohol/drug treatment professionals.

          ‘(ii) The DWI Court team recommends a specific plea agreement or contract for each offender that can include incarceration, treatment, and close community supervision. The agreement maximizes the probability of rehabilitation and minimizes the likelihood of recidivism.

          ‘(iii) Compliance with the agreement is verified with thorough monitoring and frequent alcohol testing. Periodic status hearings assess offender progress and allow an opportunity for modifying the sentence if necessary.

        ‘(C) ASSESSMENT- In the first year of operation, the States shall assess the number of court systems in its jurisdiction that are consistently performing the DWI Court functions.

        ‘(D) PLAN- In the second year of operation, the State shall develop a strategic plan for increasing the number of courts performing the DWI function.

        ‘(E) PROGRESS- In subsequent years of operation, the State shall demonstrate progress in increasing the number of DWI Courts and in increasing the number of high-risk offenders participating in and successfully completing DWI Court agreements.

    ‘(d) USES OF GRANTS- Grants made under this section may be used for programs and activities described in subsection (c) and to defray the following costs:

      ‘(1) Labor costs, management costs, and equipment procurement costs for the high-visibility, Statewide law enforcement campaigns under subsection (c)(1).

      ‘(2) The costs of the training of law enforcement personnel and the procurement of technology and equipment, such as and including video equipment and passive alcohol sensors, to counter directly impaired operation of motor vehicles.

      ‘(3) The costs of public awareness, advertising, and educational campaigns that publicize use of sobriety check points or increased law enforcement efforts to counter impaired operation of motor vehicles.

      ‘(4) The costs of public awareness, advertising, and educational campaigns that target impaired operation of motor vehicles by persons under 34 years of age.

      ‘(5) The costs of the development and implementation of a State impaired operator information system described in subsection (c)(3).

      ‘(6) The costs of operating programs that impound the vehicle of an individual arrested as an impaired operator of a motor vehicle for not less than 12 hours after the operator is arrested.

    ‘(e) ADDITIONAL AUTHORITIES FOR CERTAIN AUTHORIZED USES-

      ‘(1) COMBINATION OF GRANT PROCEEDS- Grant funds used for a campaign under subsection (d)(3) may be combined, or expended in coordination, with proceeds of grants under section 402 of this title.

      ‘(2) COORDINATION OF USES- Grant funds used for a campaign under paragraph (3) or (4) of subsection (d) may be expended--

        ‘(A) in coordination with employers, schools, entities in the hospitality industry, and nonprofit traffic safety groups; and

        ‘(B) in coordination with sporting events and concerts and other entertainment events.

    ‘(f) FUNDING-

      ‘(1) IN GENERAL- Except as provided in paragraph (2), grant funding under this section shall be allocated among eligible States on the basis of the apportionment formula that applies for apportionments under section 402(c) of this title.

      ‘(2) HIGH FATALITY-RATE STATES- The amount of the grant funds allocated under this subsection to each of the 10 States with the highest impaired driving-related fatality rate for the most recent fiscal year for which the data is available preceding the fiscal year of the allocation shall be twice the amount that, except for this subparagraph, would otherwise be allocated to the State under paragraph (1).

    ‘(g) USE OF FUNDS BY HIGH FATALITY-RATE STATES-

      ‘(1) REQUIRED USES- At least 1/2 of the amounts allocated to States under subsection (f)(2) shall be used for the program described in subsection (c)(1).

      ‘(2) REQUIREMENT FOR PLAN- A State receiving an allocation of grant funds under subsection (f)(2) shall expend those funds only after consulting with the Administrator of the National Highway Traffic Safety Administration regarding such expenditures.

    ‘(h) DEFINITIONS- In this section:

      ‘(1) IMPAIRED OPERATOR- The term ‘impaired operator’ means a person who, while operating a motor vehicle--

        ‘(A) has a blood alcohol content of 0.08 percent or higher; or

        ‘(B) is under the influence of a controlled substance.

      ‘(2) IMPAIRED DRIVING-RELATED FATALITY RATE- The term ‘impaired driving-related fatality rate’ means the rate of the fatal accidents that involve impaired drivers while operating motor vehicles, as calculated in accordance with regulations which the Administrator of the National Highway Traffic Safety Administration shall prescribe.’.

    (c) NHTSA TO ISSUE REGULATIONS- Not later than 12 months after the date of enactment of the Highway Safety Grant Program Reauthorization Act of 2004, the National Highway Traffic Safety Administration shall issue guidelines to the States specifying the types and formats of data that States should collect relating to drivers who are arrested or convicted for violation of laws prohibiting the impaired operation of motor vehicles.

SEC. 4111. STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.

    (a) GRANT PROGRAM AUTHORITY- Chapter 4 is amended by adding at the end the following:

‘Sec. 412. State traffic safety information system improvements

    ‘(a) GRANT AUTHORITY- Subject to the requirements of this section, the Secretary shall make grants of financial assistance to eligible States to support the development and implementation of effective programs by such States to--

      ‘(1) improve the timeliness, accuracy, completeness, uniformity, integration, and accessibility of the safety data of the State that is needed to identify priorities for national, State, and local highway and traffic safety programs;

      ‘(2) evaluate the effectiveness of efforts to make such improvements;

      ‘(3) link the State data systems, including traffic records, with other data systems within the State, such as systems that contain medical, roadway, and economic data; and

      ‘(4) improve the compatibility and interoperability of the data systems of the State with national data systems and data systems of other States and enhance the ability of the Secretary to observe and analyze national trends in crash occurrences, rates, outcomes, and circumstances.

    ‘(b) FIRST-YEAR GRANTS-

      ‘(1) ELIGIBILITY- To be eligible for a first-year grant under this section in a fiscal year, a State shall demonstrate to the satisfaction of the Secretary that the State has--

        ‘(A) established a highway safety data and traffic records coordinating committee with a multidisciplinary membership that includes, among others, managers, collectors, and users of traffic records and public health and injury control data systems; and

        ‘(B) developed a multiyear highway safety data and traffic records system strategic plan that addresses existing deficiencies in the State’s highway safety data and traffic records system, is approved by the highway safety data and traffic records coordinating committee, and--

          ‘(i) specifies how existing deficiencies in the State’s highway safety data and traffic records system were identified;

          ‘(ii) prioritizes, on the basis of the identified highway safety data and traffic records system deficiencies, the highway safety data and traffic records system needs and goals of the State, including the activities under subsection (a);

          ‘(iii) identifies performance-based measures by which progress toward those goals will be determined; and

          ‘(iv) specifies how the grant funds and any other funds of the State are to be used to address needs and goals identified in the multiyear plan.

      ‘(2) GRANT AMOUNT- Subject to subsection (d)(3), the amount of a first-year grant to a State for a fiscal year shall the higher of--

        ‘(A) the amount determined by multiplying--

          ‘(i) the amount appropriated to carry out this section for such fiscal year, by

          ‘(ii) the ratio that the funds apportioned to the State under section 402 of this title for fiscal year 2003 bears to the funds apportioned to all States under such section for fiscal year 2003; or

        ‘(B) $300,000.

    ‘(c) SUCCESSIVE YEAR GRANTS-

      ‘(1) ELIGIBILITY- A State shall be eligible for a grant under this subsection in a fiscal year succeeding the first fiscal year in which the State receives a grant under subsection (b) if the State, to the satisfaction of the Secretary--

        ‘(A) submits an updated multiyear plan that meets the requirements of subsection (b)(1)(B);

        ‘(B) certifies that its highway safety data and traffic records coordinating committee continues to operate and supports the multiyear plan;

        ‘(C) specifies how the grant funds and any other funds of the State are to be used to address needs and goals identified in the multiyear plan;

        ‘(D) demonstrates measurable progress toward achieving the goals and objectives identified in the multiyear plan; and

        ‘(E) includes a current report on the progress in implementing the multiyear plan.

      ‘(2) GRANT AMOUNT- Subject to subsection (d)(3), the amount of a year grant made to a State for a fiscal year under this subsection shall equal the higher of--

        ‘(A) the amount determined by multiplying--

          ‘(i) the amount appropriated to carry out this section for such fiscal year, by

          ‘(ii) the ratio that the funds apportioned to the State under section 402 of this title for fiscal year 2003 bears to the funds apportioned to all States under such section for fiscal year 2003; or

        ‘(B) $500,000.

    ‘(d) ADDITIONAL REQUIREMENTS AND LIMITATIONS-

      ‘(1) MODEL DATA ELEMENTS- The Secretary, in consultation with States and other appropriate parties, shall determine the model data elements that are useful for the observation and analysis of State and national trends in occurrences, rates, outcomes, and circumstances of motor vehicle traffic accidents. In order to be eligible for a grant under this section, a State shall submit to the Secretary a certification that the State has adopted and uses such model data elements, or a certification that the State will use grant funds provided under this section toward adopting and using the maximum number of such model data elements as soon as practicable.

      ‘(2) DATA ON USE OF ELECTRONIC DEVICES- The model data elements required under paragraph (1) shall include data elements, as determined appropriate by the Secretary in consultation with the States and with appropriate elements of the law enforcement community, on the impact on traffic safety of the use of electronic devices while driving.

      ‘(3) MAINTENANCE OF EFFORT- No grant may be made to a State under this section in any fiscal year unless the State enters into such agreements with the Secretary as the Secretary may require to ensure that the State will maintain its aggregate expenditures from all other sources for highway safety data programs at or above the average level of such expenditures maintained by such State in the 2 fiscal years preceding the date of enactment of the Highway Safety Grant Program Reauthorization Act of 2003.

      ‘(4) FEDERAL SHARE- The Federal share of the cost of adopting and implementing in a fiscal year a State program described in subsection (a) may not exceed 80 percent.

      ‘(5) LIMITATION ON USE OF GRANT PROCEEDS- A State may use the proceeds of a grant received under this section only to implement the program described in subsection (a) for which the grant is made.

    ‘(e) APPLICABILITY OF CHAPTER 1- Section 402(d) of this title shall apply in the administration of this section.’.

    (b) CLERICAL AMENDMENT- The chapter analysis for chapter 4 is amended by adding at the end the following:

      ‘412. State traffic safety information system improvements.’.

SEC. 4112. NHTSA ACCOUNTABILITY.

    (a) IN GENERAL- Chapter 4, as amended by section 4111, is amended by adding at the end the following:

‘Sec. 413. Agency accountability

    ‘(a) TRIENNIAL STATE MANAGEMENT REVIEWS- At least once every 3 years the National Highway Traffic Safety Administration shall conduct a review of each State highway safety program. The review shall include a management evaluation of all grant programs partially or fully funded under this title. The Administrator shall provide review-based recommendations on how each State may improve the management and oversight of its grant activities and may provide a management and oversight plan.

    ‘(b) RECOMMENDATIONS BEFORE SUBMISSION- In order to provide guidance to State highway safety agencies on matters that should be addressed in the State highway safety program goals and initiatives as part of its highway safety plan before the plan is submitted for review, the Administrator shall provide non-binding data-based recommendations to each State at least 90 days before the date on which the plan is to be submitted for approval.

    ‘(c) STATE PROGRAM REVIEW- The Administrator shall--

      ‘(1) conduct a program improvement review of any State that does not make substantial progress over a 3-year period in meeting its priority program goals; and

      ‘(2) provide technical assistance and safety program recommendations to the State for any goal not achieved.

    ‘(d) REGIONAL HARMONIZATION- The Administration and the Inspector General of the Department of Transportation shall undertake a State grant administrative review of the practices and procedures of the management reviews and program reviews conducted by Administration regional offices and formulate a report of best practices to be completed within 180 days after the date of enactment of the Highway Safety Grant Program Reauthorization Act of 2004.

    ‘(e) BEST PRACTICES GUIDELINES-

      ‘(1) UNIFORM GUIDELINES- The Administration shall issue uniform management review and program review guidelines based on the report under subsection (d). Each regional office shall use the guidelines in executing its State administrative review duties.

      ‘(2) PUBLICATION- The Administration shall make the following documents available via the Internet upon their completion:

        ‘(A) The Administration’s management review and program review guidelines.

        ‘(B) State highway safety plans.

        ‘(C) State annual accomplishment reports.

        ‘(D) The Administration’s State management reviews.

        ‘(E) The Administration’s State program improvement plans.

      ‘(3) REPORTS TO STATE HIGHWAY SAFETY AGENCIES- The Administrator may not make a plan, report, or review available under paragraph (2) that is directed to a State highway safety agency until after it has been submitted to that agency.

    ‘(f) GENERAL ACCOUNTING OFFICE REVIEW- The General Accounting Office shall analyze the effectiveness of the National Highway Traffic Safety Administration’s oversight of traffic safety grants by seeking to determine the usefulness of the Administration’s advice to the States regarding grants administration and State activities, the extent to which the States incorporate the Administration’s recommendation into their highway safety plans and programs, and improvements that result in a State’s highway safety program that may be attributable to the Administration’s recommendations. Based on this analysis, the General Accounting Office shall submit a report by not later than the end of fiscal year 2008 to the House of Representatives Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and Transportation.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 4, as amended by section 4111, is amended by inserting after the item relating to section 412 the following:

      ‘413. Agency accountability.’.

PART II--SPECIFIC VEHICLE SAFETY-RELATED RULINGS

SEC. 4151. AMENDMENT OF TITLE 49, UNITED STATES CODE.

    Except as otherwise specifically provided, whenever in this subpart an amendment is expressed in terms of an amendment to a section or other provision of law, the reference shall be considered to be made to a section or other provision of title 49, United States Code.

SEC. 4152. VEHICLE CRASH EJECTION PREVENTION.

    (a) IN GENERAL- Subchapter II of chapter 301 is amended by adding at the end the following:

‘Sec. 30128. Vehicle accident ejection protection

    ‘(a) IN GENERAL- The Secretary of Transportation shall prescribe a safety standard under this chapter or upgrade existing Federal motor vehicle safety standards to reduce complete and partial occupant ejection from motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds that are involved in accidents that present a risk of occupant ejection. In formulating the safety standard, the Secretary shall consider the ejection-mitigation capabilities of safety technologies, such as advanced side glazing, side curtains, and side impact air bags.

    ‘(b) DOOR LOCK AND RETENTION STANDARD- The Secretary shall upgrade Federal Motor Vehicle Safety Standard No. 206 to require manufacturers of new motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds that are distributed in commerce for sale in the United States to make such modifications to door locks, door latches, and retention components of doors in such vehicles as the Secretary determines to be necessary to reduce occupant ejection from such vehicles in motor vehicle accidents.’.

    (b) Rulemaking Deadlines-

      (1) RULEMAKING- The Secretary of Transportation shall issue--

        (A) a notice of a proposed rulemaking under section 30128 of title 49, United States Code, not later than June 30, 2006; and

        (B) a final rule under that section not later than 18 months after the publication of the notice of proposed rulemaking.

      (2) EFFECTIVE DATE OF REQUIREMENTS- In the final rule, the Secretary shall set forth effective dates for the requirements contained in the rule.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation $500,000 for each of fiscal years 2004 and 2005 to promulgate rules under section 30128 of title 49, United States Code.

    (d) CONFORMING AMENDMENT- The chapter analysis for chapter 301 is amended by inserting after the item relating to section 30127 the following:

      ‘30128. Vehicle accident ejection protection.’.

SEC. 4153. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY.

    (a) IN GENERAL- The Administrator of the National Highway Traffic Safety Administration shall conduct a study of effective methods for reducing the incidence of injury and death outside of parked passenger motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds attributable to movement of such vehicles. The Administrator shall complete the study within 1 year after the date of enactment of this Act and report its findings to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce not later than 5 months after the date of enactment of this Act.

    (b) SPECIFIC ISSUES TO BE COVERED- The study required by subsection (a) shall--

      (1) include an analysis of backover prevention technology;

      (2) identify, evaluate, and compare the available technologies for detecting people or objects behind a motor vehicle with a gross vehicle weight rating of not more than 10,000 pounds for their accuracy, effectiveness, cost, and feasibility for installation; and

      (3) provide an estimate of cost savings that would result from widespread use of backover prevention devices and technologies in motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds, including savings attributable to the prevention of--

        (A) injuries and fatalities; and

        (B) damage to bumpers and other motor vehicle parts and damage to other objects.

SEC. 4154. VEHICLE BACKOVER DATA COLLECTION.

    In conjunction with the study required in section 4153, the National Highway Traffic Safety Administration may establish a method to collect and maintain data on the number and types of injuries and deaths involving motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds in non-traffic, non-accident incidents to assist in the analysis required in section 4153 of this Act regarding the inclusion of backover prevention technologies in motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds.

SEC. 4155. AGGRESSIVITY AND INCOMPATIBILITY REDUCTION STANDARD.

    (a) IN GENERAL- Subchapter II of chapter 301, as amended by section 4152, is amended by adding at the end the following:

‘Sec. 30129. Vehicle incompatibility and aggressivity reduction standard

    ‘(a) IN GENERAL- The Secretary of Transportation shall issue motor vehicle safety standards to reduce vehicle incompatibility and aggressivity for motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds. In formulating the standards, the Secretary shall consider factors such as bumper height, weight, and any other design characteristics necessary to ensure better management of crash forces in frontal and side impact crashes among different types, sizes, and weights of motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds in order to reduce occupant deaths and injuries.

    ‘(b) STANDARDS- The Secretary shall develop a standard rating metric to evaluate compatibility and aggressivity among motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds.

    ‘(c) PUBLIC INFORMATION- The Secretary shall create a public information program that includes vehicle ratings based on risks posed by vehicle incompatibility and aggressivity to occupants, risks posed by vehicle incompatibility and agressivity to other motorists, and combined risks posed by vehicle incompatibility and agressivity by vehicle make and model.’.

    (b) Rulemaking Deadlines-

      (1) RULEMAKING- The Secretary of Transportation shall issue--

        (A) a notice of a proposed rulemaking under section 30129 of title 49, United States Code, not later than January 31, 2007; and

        (B) a final rule under that section not later than 18 months after the publication of the notice of proposed rulemaking.

      (2) EFFECTIVE DATE OF REQUIREMENTS- In the final rule, the Secretary shall set forth effective dates for the requirements contained in the rule.

    (c) CONFORMING AMENDMENT- The chapter analysis for chapter 301 is amended by inserting after the item relating to section 30128 the following:

      ‘30129. Vehicle incompatibility and aggressivity reduction standard.’.

SEC. 4156. IMPROVED CRASHWORTHINESS.

    (a) IMPROVED CRASHWORTHINESS- Subchapter II of chapter 301, as amended by section 4155, is amended by adding at the end the following:

‘Sec. 30130. Improved crashworthiness of motor vehicles

    ‘(a) Rollovers-

      ‘(1) IN GENERAL- The Secretary of Transportation shall prescribe a motor vehicle safety standard under this chapter for rollover crashworthiness standards for motor vehicles with a gross weight rating of not more than 10,000 pounds. In formulating the safety standard, the Secretary shall consider the prescription of a roof strength standard based on dynamic tests that realistically duplicate the actual forces transmitted to a passenger motor vehicle during an on-roof rollover crash, and shall consider safety technologies and design improvements such as--

        ‘(A) improved seat structure and safety belt design, including seat belt pretensioners;

        ‘(B) side impact head protection airbags; and

        ‘(C) roof injury protection measures.

      ‘(2) ROLLOVER RESISTANCE STANDARD- The Secretary shall prescribe a motor vehicle safety standard under this chapter to improve on the basic design characteristics of motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds to increase their resistance to rollover. The Secretary shall also consider additional technologies to improve the handling of motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds and thereby reduce the likelihood of vehicle instability and rollovers.

      ‘(3) STUDY- The Secretary shall conduct a study on electronic stability control systems and other technologies designed to improve the handling of motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds and shall report the results of that study to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure by December 31, 2005.

    ‘(b) Frontal Impact Standards and Crash Tests-

      ‘(1) IN GENERAL- The Secretary shall prescribe a motor vehicle safety standard under this chapter or upgrade existing Federal motor vehicle safety standards to improve the protection of occupants in frontal impact crashes involving motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds.

      ‘(2) TEST METHODOLOGY- In determining the standard under paragraph (1), the Secretary shall--

        ‘(A) evaluate additional test barriers and measurements of occupant head impact and neck injuries; and

        ‘(B) review frontal impact criteria, including consideration of criteria established by the Insurance Institute for Highway Safety.

    ‘(c) Side Impact Standards and Crash Tests-

      ‘(1) IN GENERAL- The Secretary shall prescribe a motor vehicle safety standard under this chapter or upgrade existing Federal motor vehicle safety standards to improve the protection afforded to occupants in side impact crashes involving motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds.

      ‘(2) TEST METHODOLOGY- In prescribing the standard under paragraph (1), the Secretary shall--

        ‘(A) evaluate additional test barriers and measurements of occupant head impact and neck injuries;

        ‘(C) consider the need for additional and new crash test dummies that represent the full range of occupant sizes and weights; and

        ‘(D) review side impact criteria, including consideration of criteria established by the Insurance Institute for Highway Safety.’.

    (b) Rulemaking Deadlines-

      (1) RULEMAKING- The Secretary of Transportation shall--

        (A) issue a notice of a proposed rulemaking under section 30130 of title 49, United States Code, not later than June 30, 2006; and

        (B) issue a final rule not later than 18 months after publication of the notice of proposed rulemaking.

      (2) EFFECTIVE DATE OF REQUIREMENTS- In the final rule, the Secretary shall set forth effective dates for the requirements contained in this rule.

    (c) CONFORMING AMENDMENT- The chapter analysis for chapter 301 is amended by inserting after the item relating to section 30129 the following:

      ‘30130. Improved crashworthiness of passenger motor vehicles.’.

SEC. 4157. 15-PASSENGER VANS.

    (a) IN GENERAL- The Secretary of Transportation shall initiate a rulemaking and issue a final regulation not later than September 31, 2005, to include all 15-passenger vans with a gross vehicle weight rating of not more than 10,000 pounds in the National Highway Traffic Safety Administration’s dynamic rollover testing program and require such vans to comply with all existing and prospective Federal Motor Vehicle Safety Standards for occupant protection and vehicle crash avoidance that are relevant to such vehicles.

    (b) NEW CAR ASSESSMENT PROGRAM- The Secretary shall initiate a rulemaking and issue a final regulation not later than September 31, 2005, to include all 15-passenger vans with a gross vehicle weight of not more than 10,000 pounds in the Administration’s New Car Assessment Program rollover resistance program.

    (c) Vehicle Control Technology for 15-Passenger Vans- The National Highway Traffic Safety Administration shall evaluate and test the potential of technological systems, particularly electronic stability control systems and rollover warning systems, to assist drivers in maintaining control of 15-passenger vans with a gross vehicle weight rating of not more than 10,000 pounds.

    (d) CERTAIN SPECIALIZED VEHICLES EXCLUDED- In this section, the term ‘15-passenger van’ does not include an ambulance, tow truck, or other vehicle designed primarily for the transportation of property or special purpose equipment.

SEC. 4158. ADDITIONAL SAFETY PERFORMANCE CRITERIA FOR TIRES.

    (a) STRENGTH AND ROAD HAZARD PROTECTION- The Secretary of Transportation shall issue a final rule to upgrade Federal Motor Vehicle Safety Standard No. 139 to include strength and road hazard protection safety performance criteria for light vehicle tires, which are criteria that were not addressed in the June 2003 final rule mandated by the Transportation Recall Enhancement, Accountability, and Documentation Act of 2000.

    (b) RESISTANCE TO BEAD UNSEATING AND AGING- The Secretary of Transportation shall issue a final rule to upgrade Federal Motor Vehicle Safety Standard No. 139 to include resistance to bead unseating and aging safety performance criteria for passenger motor vehicle tires, which are criteria that were not addressed in the June, 2003, final rule mandated by the Transportation Recall Enhancement, Accountability, and Documentation Act of 2000.

    (c) RULEMAKING DEADLINES- The Secretary of Transportation shall--

      (1) issue a notice of proposed rulemaking under subsection (a) not later than June 30, 2005, and under subsection(b) not later than December 31, 2005; and

      (2) issue a final rule relating to subsection (a) not later than 18 months after June 30, 2005, and a final rule under subsection (b) not later than 18 months after December 31, 2005.

    (d) TECHNOLOGY USE AND REPORT- The Secretary shall reconsider the use of shearography analysis, on a sampling basis, for regulatory compliance and the Administrator of the National Highway Traffic Safety Administration shall report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the most cost effective methods of using such technology within 2 years after the date of enactment of the Highway Safety Grant Program Reauthorization Act of 2004.

SEC. 4159. SAFETY BELT USE REMINDERS.

    (a) NOTICE OF PROPOSED RULES TO ENCOURAGE MORE SEAT BELT USE- Not later than 12 months after the date of enactment of this Act, the Secretary of Transportation shall issue a Notice of Proposed Rulemaking to amend the Federal Motor Vehicle Safety Standard No. 208 for motor vehicles with a gross vehicle weight rating of not more than 10,000 pounds to encourage increased seat belt usage by drivers and passengers. The proposed rulemaking shall take into account the potential safety benefits and public acceptability of alternative means to encourage increased seat belt usage, including intermittent or continuous audible or visual reminders when a driver or passenger is not wearing a seat belt, features to prevent operation of convenience or entertainment features of the vehicle when a driver or passenger is not wearing a seat belt, and shall consider technology, including but not limited to technology identified by the National Academy of Sciences in its study of the potential benefits of seat belt usage reminder technologies.

    (b) FINAL RULE- Not later than 24 months after the date of enactment of this Act, the Secretary shall issue the final rule required by subsection (a).

    (c) BUZZER LAW-

      (1) IN GENERAL- Section 30124 is amended--

        (A) by striking ‘not’ the first place it appears; and

        (B) by striking ‘except’ and inserting ‘including’.

      (2) CONFORMING AMENDMENT- Section 30122 is amended by striking subsection (d).

SEC. 4160. MISSED DEADLINES REPORTS.

    (a) IN GENERAL- If the Secretary of Transportation fails to meet any rulemaking deadline established in this subtitle, the Secretary shall transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure within 90 days after missing the deadline--

      (1) explaining why the Secretary failed to meet the deadline; and

      (2) setting forth a date by which the Secretary anticipates that the rulemaking will be made.

    (b) CONSIDERATION OF EFFECTS- The Secretary of Transportation shall consider and report the potential consequences, in terms of the number of deaths and the number and severity of injuries, that may result from not meeting any such deadline.

SEC. 4161. GRANTS FOR IMPROVING CHILD PASSENGER SAFETY PROGRAMS.

    (a) IN GENERAL- Chapter 4 of title 23, United States Code, as amended by section 4112 of this Act, is amended by adding at the end the following:

‘Sec. 414. Booster seat incentive grants

    ‘(a) IN GENERAL- The Secretary of Transportation shall make a grant under this section to any eligible State.

    ‘(b) ELIGIBILITY REQUIREMENTS-

      ‘(1) IN GENERAL- The Secretary shall make a grant to each State that, as determined by the Secretary, enacts or has enacted, and is enforcing a law requiring that children riding in passenger motor vehicles (as defined in section 405(d)(4)) who are too large to be secured in a child safety seat be secured in a child restraint (as defined in section 7(1) of Anton’s Law (49 U.S.C. 30127 note)) that meets requirements prescribed by the Secretary under section 3 of Anton’s Law.

      ‘(2) Year in which first eligible-

        ‘(A) EARLY QUALIFICATION- A State that has enacted a law described in paragraph (1) that is in effect before October 1, 2005, is first eligible to receive a grant under subsection (a) in fiscal year 2006.

        ‘(B) SUBSEQUENT QUALIFICATION- A State that enacts a law described in paragraph (1) that takes effect after September 30, 2005, is first eligible to receive a grant under subsection (a) in the first fiscal year beginning after the date on which the law is enacted.

      ‘(3) CONTINUING ELIGIBILITY- A State that is eligible under paragraph (1) to receive a grant may receive a grant during each fiscal year listed in subsection (f) in which it is eligible.

      ‘(4) MAXIMUM NUMBER OF GRANTS- A State may not receive more than 4 grants under this section.

    ‘(c) GRANT AMOUNT- Amounts available for grants under this section in any fiscal year shall be apportioned among the eligible States on the basis of population.

    ‘(d) USE OF GRANT AMOUNTS-

      ‘(1) IN GENERAL- Of the amounts received by a State under this section for any fiscal year--

        ‘(A) 50 percent shall be used for the enforcement of, and education to promote public awareness of, State child passenger protection laws; and

        ‘(B) 50 percent shall be used to fund programs that purchase and distribute child booster seats, child safety seats, and other appropriate passenger motor vehicle child restraints to indigent families without charge.

      ‘(2) REPORT- Within 60 days after the State fiscal year in which a State receives a grant under this section, the State shall transmit to the Secretary a report documenting the manner in which grant amounts were obligated or expended and identifying the specific programs supports by grant funds. The report shall be in a form prescribed by the Secretary and may be combined with other State grant reporting requirements under this chapter.

    ‘(e) DEFINITION OF CHILD SAFETY SEAT- The term ‘child safety seat’ means any device (except safety belts (as such term is defined in section 405(d)(5)), designed for use in a motor vehicle (as such term is defined in section 405(d)(1)) to restrain, seat, or position a child who weighs 50 pounds or less.

    ‘(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation, out of the Highway Trust Fund--

      ‘(1) $18,000,000 for fiscal year 2006;

      ‘(2) $20,000,000 for fiscal year 2007;

      ‘(3) $25,000,000 for fiscal year 2008; and

      ‘(4) $30,000,000 for fiscal year 2009.’.

    (b) CLERICAL AMENDMENT- The chapter analysis for chapter 4 of title 23, United States Code, is amended by inserting after the item relating to section 411 the following:

      ‘414. Booster seat incentive grants.’.

SEC. 4162. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of Transportation to carry out this subtitle and chapter 301 of title 49, United States Code--

      (1) $130,500,000 for fiscal year 2004;

      (2) $133,500,000 for fiscal year 2005;

      (3) $133,600,000 for fiscal year 2006;

      (4) $134,500,000 for fiscal year 2007;

      (5) $138,000,000 for fiscal year 2008; and

      (6) $141,000,000 for fiscal year 2009.

PART III--MISCELLANEOUS PROVISIONS

SEC. 4171. DRIVER LICENSING AND EDUCATION.

    (a) NATIONAL OFFICE OF DRIVER LICENSING AND EDUCATION- Section 105 of title 49, United States Code, is amended by adding at the end the following new subsection:

    ‘(f)(1) There is a National Office of Driver Licensing and Education in the National Highway Traffic Safety Administration.

    ‘(2) The head of the National Office of Driver Licensing and Education is the Director.

    ‘(3) The functions of the National Office of Driver Licensing and Education are as follows:

      ‘(A) To provide States with services for coordinating the motor vehicle driver training and licensing programs of the States.

      ‘(B) To develop and make available to the States a recommended comprehensive model for motor vehicle driver education and graduated licensing that incorporates the best practices in driver education and graduated licensing, including best practices with respect to--

        ‘(i) vehicle handling and crash avoidance;

        ‘(ii) driver behavior and risk reduction;

        ‘(iii) roadway features and associated safety implications;

        ‘(iv) roadway interactions involving all types of vehicles and road users, such as car-truck and pedestrian-car interactions;

        ‘(v) parent education; and

        ‘(vi) other issues identified by the Director.

      ‘(C) To carry out such research (pursuant to cooperative agreements or otherwise) and undertake such other activities as the Director determines appropriate to develop and, on an ongoing basis, improve the recommended comprehensive model.

      ‘(D) To provide States with technical assistance for the implementation and deployment of the motor vehicle driver education and licensing comprehensive model recommended under subparagraph (B).

      ‘(E) To develop and recommend to the States methods for harmonizing the presentation of motor vehicle driver education and licensing with the requirements of multistage graduated licensing systems, including systems described in section 410(c)(4) of title 23, and to demonstrate and evaluate the effectiveness of those methods in selected States.

      ‘(F) To assist States with the development and implementation of programs to certify driver education instructors, including the development and implementation of proposed uniform certification standards.

      ‘(G) To provide States with financial assistance under section 412 of title 23 for--

        ‘(i) the implementation of the motor vehicle driver education and licensing comprehensive model recommended under subparagraph (B);

        ‘(ii) the establishment or improved administration of multistage graduated licensing systems; and

        ‘(iii) the support of other improvements in motor vehicle driver education and licensing programs.

      ‘(H) To evaluate the effectiveness of the comprehensive model recommended under subparagraph (B).

      ‘(I) To examine different options for delivering driver education in the States.

      ‘(J) To perform such other functions relating to motor vehicle driver education or licensing as the Secretary may require.

    ‘(4) Not later than 42 months after the date of the enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004, the Director shall submit to Congress a report on the progress made by the National Office of Driver Licensing and Education with respect to the functions under paragraph (3).’.

    (b) GRANT PROGRAM FOR IMPROVEMENT OF DRIVER EDUCATION AND LICENSING-

      (1) AUTHORITY-

        (A) IN GENERAL- Chapter 4 of title 23, United States Code, is amended by adding at the end the following new section:

‘SEC. 412. DRIVER EDUCATION AND LICENSING.

    ‘(a) AUTHORITY-

      ‘(1) IN GENERAL- The Secretary shall carry out a program to provide States, by grant, with financial assistance to support the improvement of motor vehicle driver education programs and the establishment and improved administration of graduated licensing systems, including systems described in section 410(c)(4) of this title.

      ‘(2) ADMINISTRATIVE OFFICE- The Secretary shall administer the program under this section through the Director of the National Office of Driver Licensing and Education.

    ‘(b) ELIGIBILITY REQUIREMENTS-

      ‘(1) REGULATIONS- The Secretary shall prescribe in regulations the eligibility requirements, application and approval procedures and standards, and authorized uses of grant proceeds for the grant program under this section. The regulations shall, at a minimum, authorize use of grant proceeds for the following activities:

        ‘(A) Quality assurance testing, including follow-up testing to monitor the effectiveness of--

          ‘(i) driver licensing and education programs;

          ‘(ii) instructor certification testing; and

          ‘(iii) other statistical research designed to evaluate the performance of driver education and licensing programs.

        ‘(B) Improvement of motor vehicle driver education curricula.

        ‘(C) Training of instructors for motor vehicle driver education programs.

        ‘(D) Testing and evaluation of motor vehicle driver performance.

        ‘(E) Public education and outreach regarding motor vehicle driver education and licensing.

        ‘(F) Improvements with respect to State graduated licensing programs, as well as related enforcement activities.

      ‘(2) CONSULTATION REQUIREMENT- In prescribing the regulations, the Secretary shall consult with the following:

        ‘(A) The Administrator of the National Highway Traffic Safety Administration.

        ‘(B) The heads of such other departments and agencies of the United States as the Secretary considers appropriate on the basis of relevant interests or expertise.

        ‘(C) Appropriate officials of the governments of States and political subdivisions of States.

        ‘(D) Other relevant experts.

    ‘(c) MAXIMUM AMOUNT OF GRANT- The maximum amount of a grant of financial assistance for a program, project, or activity under this section may not exceed 75 percent of the total cost of such program, project, or activity.’.

        (B) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      ‘412. Driver education and licensing.’.

      (2) TIME FOR PROMULGATION OF REGULATIONS- The Secretary of Transportation shall promulgate the regulations under section 412(b) of title 23, United States Code (as added by paragraph (1)), not later than October 1, 2005.

    (c) GRANT PROGRAM FOR PUBLIC AWARENESS OF ORGAN DONATION THROUGH DRIVER LICENSING PROGRAMS-

      (1) AUTHORITY-

        (A) IN GENERAL- Chapter 4 of title 23, United States Code (as amended by subsection (b)), is further amended by adding at the end the following new section:

‘SEC. 413. ORGAN DONATION THROUGH DRIVER LICENSING.

    ‘(a) AUTHORITY-

      ‘(1) IN GENERAL- The Secretary shall carry out a program to provide eligible recipients, by grant, with financial assistance to carry out campaigns to increase public awareness of, and training on, authority and procedures under State law to provide for the donation of organs through a declaration recorded on a motor vehicle driver license.

      ‘(2) ADMINISTRATIVE OFFICE- The Secretary shall administer the program under this section through the Director of the National Office of Driver Licensing and Education.

    ‘(b) ELIGIBILITY REQUIREMENTS-

      ‘(1) REGULATIONS- The Secretary shall prescribe in regulations the eligibility requirements, application and approval procedures and standards, and authorized uses of grant proceeds for the grant program under this section.

      ‘(2) CONSULTATION REQUIREMENT- In prescribing the regulations, the Secretary shall consult with the following:

        ‘(A) The Administrator of the National Highway Traffic Safety Administration.

        ‘(B) The heads of such other departments and agencies of the United States as the Secretary considers appropriate on the basis of relevant interests or expertise.

        ‘(C) Appropriate officials of the governments of States and political subdivisions of States.

        ‘(D) Representatives of private sector organizations recognized for relevant expertise.’.

        (B) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      ‘413. Organ donation through driver licensing.’.

      (2) TIME FOR PROMULGATION OF REGULATIONS- The Secretary of Transportation shall promulgate the regulations under section 413(b) of title 23, United States Code (as added by paragraph (1)), not later than October 1, 2005.

    (d) STUDY OF NATIONAL DRIVER EDUCATION STANDARDS-

      (1) REQUIREMENT FOR STUDY- The Secretary of Transportation shall carry out a study to determine whether the establishment and imposition of nationwide minimum standards of motor vehicle driver education would improve national highway traffic safety or the performance and legal compliance of novice drivers.

      (2) TIME FOR COMPLETION OF STUDY- The Secretary shall complete the study not later than 2 years after the date of the enactment of this Act.

      (3) REPORT- The Secretary shall publish a report on the results of the study under this section not later than 2 years after the study is completed.

    (e) AUTHORIZATION OF APPROPRIATIONS- Of the amounts available to carry out section 403 of title 23, United States Code, for each of the fiscal years 2005 through 2010, $5,000,000 may be made available for each such fiscal year to carry out sections 412 and 413 of title 23, United States Code (as added by subsections (b) and (c), respectively).

SEC. 4172. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE ACT.

    (a) SAFETY LABELING REQUIREMENT- Section 3 of the Automobile Information Disclosure Act (15 U.S.C. 1232) is amended by adding at the end the following:

    ‘(g) if one or more safety ratings for such automobile have been assigned and formally published or released by the National Highway Traffic Safety Administration under the New Car Assessment Program, information about safety ratings that--

      ‘(1) includes a graphic depiction of the number of stars that corresponds to each such assigned safety rating displayed in a clearly differentiated fashion from stars indicating the unattained safety rating;

      ‘(2) refers to frontal impact crash tests, side impact crash tests, and rollover resistance tests (whether or not such automobile has been assigned a safety rating for such tests), including statements that--

        ‘(A) frontal impact crash test ratings are based on risk of head and chest injury;

        ‘(B) side impact crash test ratings are based on risk of chest injury; and

        ‘(C) rollover resistance ratings are based on risk of rollover in the event of a single automobile crash;

      ‘(3) is presented in a legible, visible, and prominent fashion and covers at least--

        ‘(A) 8 percent of the total area of the label; or

        ‘(B) an area with a minimum length of 4 1/2 inches and a minimum height of 3 1/2 inches; and

      ‘(4) contains a heading titled ‘Government Safety Information’ and a disclaimer including the following text: ‘Star ratings for frontal impact crash tests can only be compared to other vehicles in the same weight class and those plus or minus 250 pounds. Side impact and rollover ratings can be compared across all vehicle weights and classes. For more information on safety and testing, please visit http://www.nhtsa.dot.gov’; and

    ‘(h) if an automobile has not been tested by the National Highway Traffic Safety Administration under the New Car Assessment Program, or safety ratings for such automobile have not been assigned in one or more rating categories, a statement to that effect.’.

    (b) REGULATIONS- Not later than January 1, 2005, the Secretary of Transportation shall prescribe regulations to implement the labeling requirements under subsections (g) and (h) of section 3 of such Act (as added by subsection (a)).

    (c) CONFORMING AND TECHNICAL AMENDMENTS- Section 3 of such Act is further amended--

      (1) in subsection (e), by striking ‘and’ after the semicolon; and

      (2) in subsection (f)--

        (A) by adding ‘and’ at the end of paragraph (3); and

        (B) by striking the period at the end and inserting a semicolon.

    (d) APPLICABILITY- The labeling requirements under subsections (g) and (h) of section 3 of such Act (as added by subsection (a)), and the regulations prescribed under subsection (b), shall apply to new automobiles delivered on or after--

      (1) September 1, 2005, if the regulations under subsection (b) are prescribed not later than August 31, 2004; or

      (2) September 1, 2006, if the regulations under subsection (b) are prescribed after August 31, 2004.

SEC. 4173. CHILD SAFETY.

    (a) INCORPORATION OF CHILD DUMMIES IN SAFETY TESTS-

      (1) RULEMAKING REQUIRED- Not later than 2 years after the date of the enactment of this Act, the Administrator of the National Highway Traffic Safety Administration shall conduct a rulemaking to increase utilization of child dummies, including Hybrid-III child dummies, in motor vehicle safety tests, including crash tests, conducted by the Administration.

      (2) CRITERIA- In conducting the rulemaking under subsection (a), the Administrator shall select motor vehicle safety tests in which the inclusion of child dummies will lead to--

        (A) increased understanding of crash dynamics with respect to children; and

        (B) measurably improved child safety.

      (3) REPORT- Not later than one year after the date of the enactment of this Act, the Secretary of Transportation shall publish a report regarding the implementation of this section.

    (b) CHILD SAFETY IN ROLLOVER CRASHES-

      (1) CONSUMER INFORMATION PROGRAM- Not later than 2 years after the date of the enactment of this Act, the Secretary of Transportation shall implement a consumer information program relating to child safety in rollover crashes. The Secretary shall make information related to the program available to the public following completion of the program.

      (2) CHILD DUMMY DEVELOPMENT-

        (A) IN GENERAL- The Administrator of the National Highway Traffic Safety Administration shall initiate the development of a biofidelic child crash test dummy capable of measuring injury forces in a simulated rollover crash.

        (B) REPORTS- The Secretary shall submit to Congress a report on progress related to such development--

          (i) not later than 1 year after the date of the enactment of this Act; and

          (ii) not later than 3 years after the date of the enactment of this Act.

    (c) REPORT ON ENHANCED VEHICLE SAFETY TECHNOLOGIES- Not later than 2 years after the date of the enactment of this Act, the Secretary of Transportation shall submit to Congress a report that describes, evaluates, and determines the relative effectiveness of--

      (1) currently available and emerging technologies, including auto-reverse functions and child-safe window switches, that are designed to prevent and reduce the number of injuries and deaths to children left unattended inside parked motor vehicles, including injuries and deaths that result from hyperthermia or are related to power windows or power sunroofs; and

      (2) currently available and emerging technologies that are designed to improve the performance of safety belts with respect to the safety of occupants aged between 4 and 8 years old.

    (d) COMPLETION OF RULEMAKING REGARDING POWER WINDOWS- Not later than 180 days after the date of the enactment of this Act, the Secretary of Transportation shall--

      (1) complete the rulemaking initiated by the National Highway Traffic Safety Administration that is ongoing on the date of the enactment of this Act and relates to a requirement that window switches be designed to reduce the accidental closing by children of power windows; and

      (2) issue performance-based regulations to take effect not later than September 1, 2006, requiring that window switches or related technologies be designed to prevent the accidental closing by children of power windows.

    (e) DATABASE ON INJURIES AND DEATHS IN NONTRAFFIC, NONCRASH EVENTS-

      (1) IN GENERAL- The Secretary of Transportation shall establish a new database of, and collect data regarding, injuries and deaths in nontraffic, noncrash events involving motor vehicles. The database shall include information regarding--

        (A) the number, types, and proximate causes of injuries and deaths resulting from such events;

        (B) the characteristics of motor vehicles involved in such events;

        (C) the characteristics of the motor vehicle operators and victims involved in such events; and

        (D) the presence or absence in motor vehicles involved in such events of advanced technologies designed to prevent such injuries and deaths.

      (2) RULEMAKING- The Secretary shall conduct a rulemaking regarding how to structure and compile the database.

      (3) AVAILABILITY- The Secretary shall make the database available to the public.

SEC. 4174. SAFE INTERSECTIONS.

    (a) IN GENERAL- Chapter 2 of title 18, United States Code, is amended by adding at the end the following:

‘Sec. 39. Traffic signal preemption transmitters

    ‘(a) OFFENSES-

      ‘(1) SALE- A person who provides for sale to unauthorized users a traffic signal preemption transmitter in or affecting interstate or foreign commerce shall be fined not more than $10,000, imprisoned not more than 1 year, or both.

      ‘(2) POSSESSION- A person who is an unauthorized user in possession of a traffic signal preemption transmitter in or affecting interstate or foreign commerce shall be fined not more than $10,000, imprisoned not more than 6 months, or both.

    ‘(b) DEFINITIONS- In this section, the following definitions apply:

      ‘(1) TRAFFIC SIGNAL PREEMPTION TRANSMITTER- The term ‘traffic signal preemption transmitter’ means any device or mechanism that can change a traffic signal’s phase.

      ‘(2) UNAUTHORIZED USER- The term ‘unauthorized user’ means a user of a traffic signal preemption transmitter who is not a government approved user.’.

    (b) CHAPTER ANALYSIS- The chapter analysis for chapter 2 of title 18, United States Code, is amended by adding at the end the following:

      ‘39. Traffic signal preemption transmitters.’.

SEC. 4175. STUDY ON INCREASED SPEED LIMITS.

    (a) STUDY-

      (1) IN GENERAL- Not later than 2 years after the date of enactment of this Act, the Secretary shall conduct a study to examine the effects of increased speed limits enacted by States after 1995.

      (2) REQUIREMENTS- The study shall collect empirical data regarding--

        (A) increases or decreases in driving speeds on Interstate highways since 1995;

        (B) correlations between changes in driving speeds and accident, injury, and fatality rates;

        (C) correlations between posted speed limits and observed driving speeds;

        (D) the overall impact on motor vehicle safety resulting from the repeal of the national maximum speed limit in 1995; and

        (E) such other matters as the Secretary determines to be appropriate.

    (b) REPORT- Not later than 1 year after the date of completion of the study under subsection (a), the Secretary shall submit to Congress a report that describes the results of the study.

Subtitle B--Motor Carrier Safety and Unified Carrier Registration

PART I--ADMINISTRATIVE MATTERS

SEC. 4201. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES CODE.

    (a) SHORT TITLE- This subtitle may be cited as the ‘Motor Carrier Safety Reauthorization Act of 2004’.

    (b) AMENDMENT OF TITLE 49, UNITED STATES CODE- Except as otherwise specifically provided, whenever in this subtitle an amendment is expressed in terms of an amendment to a section or other provision of law, the reference shall be considered to be made to a section or other provision of title 49, United States Code.

SEC. 4202. REQUIRED COMPLETION OF OVERDUE REPORTS, STUDIES, AND RULEMAKINGS.

    (a) REQUIREMENT FOR COMPLETION- By no later than 36 months after the date of enactment of this Act, the Secretary of Transportation shall complete all reports, studies, and rulemaking proceedings to issue regulations which Congress directed the Secretary to complete in previous laws and which are not yet completed, including the following:

      (1) Commercial Vehicle Driver Biometric Identifier, section 9105, Truck and Bus Safety and Regulatory Reform Act of 1988.

      (2) General Transportation of HAZMAT, section 8(b), Hazardous Materials Transportation Uniform Safety Act of 1990.

      (3) Nationally Uniform System of Permits for Interstate Motor Carrier Transport of HAZMAT, section 22, Hazardous Materials Transportation Uniform Safety Act of 1990.

      (4) Training for Entry-Level Drivers of Commercial Motor Vehicles, section 4007 (a), Intermodal Surface Transportation Efficiency Act of 1991.

      (5) Minimum Training Requirements for Operators and for Training Instructors of Multiple Trailer Combination Vehicles, section 4007(b)(2), Intermodal Surface Transportation Efficiency Act of 1991.

      (6) Railroad-Highway Grade Crossing Safety, section 112, Hazardous Materials Transportation Authorization Act of 1994.

      (7) Safety Performance History of New Drivers, section 114, Hazardous Materials Transportation Authorization Act of 1994.

      (8) Motor Carrier Replacement Information and Registration System, section 103, ICC Termination Act of 1995.

      (9) General Jurisdiction Over Freight Forwarder Service, section 13531, ICC Termination Act of 1995.

      (10) Waivers, Exemptions, and Pilot Programs, section 4007, Transportation Equity Act for the Twenty-First Century.

      (11) Safety Performance History of New Drivers, section 4014, Transportation Equity Act for the Twenty-First Century.

      (12) Performance-based CDL Testing, section 4019, Transportation Equity Act for the Twenty-First Century.

      (13) Improved Flow of Driver History Pilot Program, section 4022, Transportation Equity Act for the Twenty-First Century.

      (14) Employee Protections, section 4023, Transportation Equity Act for the Twenty-First Century.

      (15) Improved Interstate School Bus Safety, section 4024, Transportation Equity Act for the Twenty-First Century.

      (16) Federal Motor Carrier Safety Administration 2010 Strategy, section 104, Motor Carrier Safety Improvement Act of 1999.

      (17) New Motor Carrier Entrant Requirements, section 210, Motor Carrier Safety Improvement Act of 1999.

      (18) Certified Motor Carrier Safety Auditors, section 211, Motor Carrier Safety Improvement Act of 1999.

      (19) Medical Certificate, section 215, Motor Carrier Safety Improvement Act of 1999.

      (20) Report on Any Pilots Undertaken to Develop Innovative Methods of Improving Motor Carrier Compliance with Traffic Laws, section 220, Motor Carrier Safety Improvement Act of 1999.

      (21) Status Report on the Implementation of Electronic Transmission of Data State-to-State on Convictions for All Motor Vehicle Control Law Violations for CDL Holders, section 221, Motor Carrier Safety Improvement Act of 1999.

      (22) Assessment of Civil Penalties, section 222, Motor Carrier Safety Improvement Act of 1999.

      (23) Truck Crash Causation Study, section 224, Motor Carrier Safety Improvement Act of 1999.

      (24) Drug Test Results Study, section 226, Motor Carrier Safety Improvement Act of 1999.

    (b) FINAL RULE REQUIRED- Unless specifically permitted by law, rulemaking proceedings shall be considered completed for purposes of this section only when the Secretary has issued a final rule and the docket for the rulemaking proceeding is closed.

    (c) SCHEDULE FOR COMPLETION- No fewer than one-third of the reports, studies, and rulemaking proceedings in subsection (a) shall be completed every 12 months after the date of enactment of this Act. The Inspector General of the Department of Transportation shall make an annual determination as to whether this schedule has been met.

    (d) FAILURE TO COMPLY- If the Secretary fails to complete the required number of reports, studies, and rulemaking proceedings according to the schedule set forth in subsection (c) during any fiscal year, the Secretary shall allocate to the States $3,000,000 from the amount authorized by section 31104(i)(1) of title 49, United States Code, for administrative expenses of the Federal Motor Carrier Safety Administration to conduct additional compliance reviews under section 31102 of that title instead of obligating or expending such amount for those administrative expenses.

    (e) AMENDMENTS TO THE LISTED REPORTS, STUDIES, AND RULEMAKING PROCEEDINGS- In addition to completing the reports, studies and rulemaking proceedings listed in subsection (c), the Secretary shall--

      (1) amend the Interim Final Rule addressing New Motor Carrier Entrant Requirements to require that a safety audit be immediately converted to a compliance review and appropriate enforcement actions be taken if the safety audit discloses acute safety violations by the new entrant; and

      (2) eliminate a proposed provision in the rulemaking proceeding addressing Commercial Van Operations Transporting Nine to Fifteen Passengers which exempts commercial van operations that operate within a 75-mile radius.

    (f) COMPLETION OF NEW RULEMAKING PROCEEDINGS- Nothing in this section delays or changes the deadlines specified for new reports, studies, or rulemaking mandates contained in this title.

    (g) REPORT OF OTHER AGENCY ACTIONS- Within 12 months after the date of enactment of this Act, the Secretary shall submit to the Senate Committee on Commerce, Science, and Transportation and to the House Committee on Transportation and Infrastructure a report on the status of the following projects:

      (1) Rescinding the current regulation which prohibits truck and bus drivers from viewing television and monitor screens while operating commercial vehicles.

      (2) Incorporating Out-Of-Service Criteria regulations enforced by the Federal Motor Carrier Safety Administration.

      (3) Revision of the safety fitness rating system of motor carriers.

      (4) Amendment of Federal Motor Carrier Safety Administration rules of practice for conducting motor carrier administrative proceedings, investigations, disqualifications, and for issuing penalties.

      (5) Requiring commercial drivers to have a sufficient functional speaking and reading comprehension of the English language.

      (6) Inspection, repair and maintenance of intermodal container chassis and trailers.

SEC. 4203. CONTRACT AUTHORITY.

    Authorizations from the Highway Trust Fund (other than the Mass Transit Account) to carry out this subtitle shall be available for obligation on the date of their apportionment or allocation or on October 1 of the fiscal year for which they are authorized, whichever occurs first. Approval by the Secretary of a grant with funds made available under this title imposes upon the United States Government a contractual obligation for payment of the Government’s share of costs incurred in carrying out the objectives of the grant.

PART II--MOTOR CARRIER SAFETY

SEC. 4221. MINIMUM GUARANTEE.

    There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) not less than 1.21 percent of the total amounts made available in any fiscal year from the Highway Trust Fund for purposes of this part.

SEC. 4222. AUTHORIZATION OF APPROPRIATIONS.

    (a) ADMINISTRATIVE EXPENSES- Section 31104 is amended by adding at the end the following:

    ‘(i) ADMINISTRATIVE EXPENSES-

      ‘(1) There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) for the Secretary of Transportation to pay administrative expenses of the Federal Motor Carrier Safety Administration--

        ‘(A) $202,900,000 for fiscal year 2004;

        ‘(B) $206,200,000 for fiscal year 2005;

        ‘(C) $211,400,000 for fiscal year 2006;

        ‘(D) $217,500,000 for fiscal year 2007;

        ‘(E) $222,600,000 for fiscal year 2008; and

        ‘(F) $228,500,000 for fiscal year 2009.

      ‘(2) The funds authorized by this subsection shall be used for personnel costs; administrative infrastructure; rent; information technology; programs for research and technology, information management, regulatory development (including a medical review board and rules for medical examiners), performance and registration information system management, and outreach and education; other operating expenses and similar matters; and such other expenses as may from time to time become necessary to implement statutory mandates not funded from other sources.

      ‘(3) From the funds authorized by this section, the Secretary shall ensure that compliance reviews are completed on the motor carriers that have demonstrated through performance data that they pose the highest safety risk. At a minimum, compliance reviews shall be conducted within 6 months after whenever a carrier is rated as category A or B.

      ‘(4) The amounts made available under this section shall remain available until expended.

      ‘(5) Of the funds authorized by paragraph (1), $6,750,000 in each of fiscal years 2004 through 2009 shall be used to carry out the medical program under section 31149.’.

    (b) Amendment to Apportionment Provision of Title 23- Section 104(a) of title 23, United States Code, is amended--

      (1) by striking ‘exceed--’ and so much of subparagraph (A) as precedes clause (i) and inserting ‘exceed 1 1/6 percent of all sums so made available, as the Secretary determines necessary--’;

      (2) by redesignating clause (i) and (ii) of subparagraph (A) as subparagraphs (A) and (B), and indenting such clauses, as so redesignated, 2 em spaces; and

      (3) by striking ‘system; and’ in subparagraph (B) as so redesignated, and all that follows through ‘research.’ and inserting ‘system.’.

    (c) GRANT PROGRAMS- There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) for the following Federal Motor Carrier Safety Administration programs:

      (1) Border enforcement grants under section 31107 of title 49, United States Code--

        (A) $32,000,000 for fiscal year 2004;

        (B) $33,000,000 for fiscal year 2005;

        (C) $33,000,000 for fiscal year 2006;

        (D) $34,000,000 for fiscal year 2007;

        (E) $35,000,000 for fiscal year 2008; and

        (F) $36,000,000 for fiscal year 2009.

      (2) Performance and registration information system management grant program under 31109 of title 49, United States Code--

        (A) $4,000,000 for fiscal year 2004;

        (B) $4,000,000 for fiscal year 2005;

        (C) $4,000,000 for fiscal year 2006;

        (D) $4,000,000 for fiscal year 2007;

        (E) $4,000,000 for fiscal year 2008; and

        (F) $4,000,000 for fiscal year 2009.

      (3) Commercial driver’s license and driver improvement program grants under section 31318 of title 49, United States Code--

        (A) $22,000,000 for fiscal year 2004;

        (B) $22,000,000 for fiscal year 2005;

        (C) $23,000,000 for fiscal year 2006;

        (D) $23,000,000 for fiscal year 2007;

        (E) $24,000,000 for fiscal year 2008; and

        (F) $25,000,000 for fiscal year 2009.

      (4) Deployment of the Commercial Vehicle Informations Systems and Networks established under section 4241 of this title, $25,000,000 for each of fiscal years 2004 through 2009.

    (d) MOTOR CARRIER SAFETY ACCOUNT- Funds made available under subsection (c) shall be administered in the account established in the Treasury entitled ‘Motor Carrier Safety 69-8055-0-7-401’.

    (e) PERIOD OF AVAILABILITY- The amounts made available under subsection (c) of this section shall remain available until expended.

SEC. 4223. MOTOR CARRIER SAFETY GRANTS.

    (a) MOTOR CARRIER SAFETY ASSISTANCE PROGRAM-

      (1) Section 31102 is amended--

        (A) by striking ‘activities by fiscal year 2000;’ in subsection (b)(1)(A) and inserting ‘activities for commercial motor vehicles of passengers and freight;’;

        (B) by striking ‘years before December 18, 1991;’ in subsection (b)(1)(E) and inserting ‘years’;

        (C) by striking ‘and’ after the semicolon in subsection (b)(1)(S);

        (D) by striking ‘personnel.’ in subsection (b)(1)(T) and inserting ‘personnel;’;

        (E) adding at the end of subsection (b)(1) the following:

      ‘(U) ensures that inspections of motor carriers of passengers are conducted at stations, terminals, border crossings, or maintenance facilities, except in the case of an imminent or obvious safety hazard;

      ‘(V) provides that the State will include in the training manual for the licensing examination to drive a non-commercial motor vehicle and a commercial motor vehicle, information on best practices for driving safely in the vicinity of commercial motor vehicles and in the vicinity of non-commercial vehicles, respectively; and

      ‘(W) provides that the State will enforce the registration requirements of section 13902 by suspending the operation of any vehicle discovered to be operating without registration or beyond the scope of its registration.’; and

        (F) by striking subsection (c) and inserting the following:

    ‘(c) USE OF GRANTS TO ENFORCE OTHER LAWS- A State may use amounts received under a grant under subsection (a) of this section for the following activities:

      ‘(1) If the activities are carried out in conjunction with an appropriate inspection of the commercial motor vehicle to enforce Government or State commercial motor vehicle safety regulations--

        ‘(A) enforcement of commercial motor vehicle size and weight limitations at locations other than fixed weight facilities, at specific locations such as steep grades or mountainous terrains where the weight of a commercial motor vehicle can significantly affect the safe operation of the vehicle, or at ports where intermodal shipping containers enter and leave the United States; and

        ‘(B) detection of the unlawful presence of a controlled substance (as defined under section 102 of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 802)) in a commercial motor vehicle or on the person of any occupant (including the operator) of the vehicle.

      ‘(2) Documented enforcement of State traffic laws and regulations designed to promote the safe operation of commercial motor vehicles, including documented enforcement of such laws and regulations against non-commercial motor vehicles when necessary to promote the safe operation of commercial motor vehicles.’.

      (2) Section 31103(b) is amended--

        (A) by inserting ‘(1)’ after ‘ACTIVITIES- ’; and

        (B) by adding at the end the following:

      ‘(2) NEW ENTRANT MOTOR CARRIER AUDIT FUNDS- From the amounts designated under section 31104(f)(4), the Secretary may allocate new entrant motor carrier audit funds to States and local governments without requiring a matching contribution from such States or local governments.’.

      (3) Section 31104(a) is amended to read as follows:

    ‘(a) IN GENERAL- There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out section 31102:

      ‘(1) Not more than $186,100,000 for fiscal year 2004.

      ‘(2) Not more than $189,800,000 for fiscal year 2005.

      ‘(3) Not more than $193,600,000 for fiscal year 2006.

      ‘(4) Not more than $197,500,000 for fiscal year 2007.

      ‘(5) Not more than $201,400,000 for fiscal year 2008.

      ‘(6) Not more than $205,500,000 for fiscal year 2009.’.

      (4) Section 31104(f) is amended by striking paragraph (2) and inserting the following:

      ‘(2) HIGH-PRIORITY ACTIVITIES- The Secretary may designate up to 5 percent of amounts available for allocation under paragraph (1) for States, local governments, and organizations representing government agencies or officials for carrying out high priority activities and projects that improve commercial motor vehicle safety and compliance with commercial motor vehicle safety regulations, including activities and projects that are national in scope, increase public awareness and education, or demonstrate new technologies. The amounts designated under this paragraph shall be allocated by the Secretary to State agencies, local governments, and organizations representing government agencies or officials that use and train qualified officers and employees in coordination with State motor vehicle safety agencies. At least 80 percent of the amounts designated under this paragraph shall be awarded to State agencies and local government agencies.

      ‘(3) SAFETY-PERFORMANCE INCENTIVE PROGRAMS- The Secretary may designate up to 10 percent of the amounts available for allocation under paragraph (1) for safety performance incentive programs for States. The Secretary shall establish safety performance criteria to be used to distribute incentive program funds. Such criteria shall include, at a minimum, reduction in the number and rate of fatal accidents involving commercial motor vehicles. Allocations under this paragraph do not require a matching contribution from a State.

      ‘(4) NEW ENTRANT AUDITS- The Secretary shall designate up to $29,000,000 of the amounts available for allocation under paragraph (1) for audits of new entrant motor carriers conducted pursuant to 31144(f). The Secretary may withhold such funds from a State or local government that is unable to use government employees to conduct new entrant motor carrier audits, and may instead utilize the funds to conduct audits in those jurisdictions.’.

    (b) GRANTS TO STATES FOR BORDER ENFORCEMENT- Section 31107 is amended to read as follows:

‘Sec. 31107. Border enforcement grants

    ‘(a) GENERAL AUTHORITY- From the funds authorized by section 4222(c)(1) of the Motor Carrier Safety Reauthorization Act of 2004, the Secretary may make a grant in a fiscal year to a State that shares a border with another country for carrying out border commercial motor vehicle safety programs and related enforcement activities and projects.

    ‘(b) MAINTENANCE OF EXPENDITURES- The Secretary may make a grant to a State under this section only if the State agrees that the total expenditure of amounts of the State and political subdivisions of the State, exclusive of United States Government amounts, for carrying out border commercial motor vehicle safety programs and related enforcement activities and projects will be maintained at a level at least equal to the average level of that expenditure by the State and political subdivisions of the State for the last 2 State or Federal fiscal years before October 1, 2003.’.

    (c) GRANTS TO STATES FOR COMMERCIAL DRIVER’S LICENSE IMPROVEMENTS- Chapter 313 is amended by adding at the end the following:

‘Sec. 31318. Grants for commercial driver’s license program improvements

    ‘(a) GENERAL AUTHORITY- From the funds authorized by section 4222(c)(3) of the Motor Carrier Safety Reauthorization Act of 2004, the Secretary may make a grant to a State, except as otherwise provided in subsection (e), in a fiscal year to improve its implementation of the commercial driver’s license program, providing the State is in substantial compliance with the requirements of section 31311 and this section. The Secretary shall establish criteria for the distribution of grants and notify the States annually of such criteria.

    ‘(b) CONDITIONS- Except as otherwise provided in subsection (e), a State may use a grant under this section only for expenses directly related to its commercial driver’s license program, including, but not limited to, computer hardware and software, publications, testing, personnel, training, and quality control. The grant may not be used to rent, lease, or buy land or buildings. The Secretary shall give priority to grants that will be used to achieve compliance with the requirements of the Motor Carrier Safety Improvement Act of 1999. The Secretary may allocate the funds appropriated for such grants in a fiscal year among the eligible States whose applications for grants have been approved, under criteria established by the Secretary.

    ‘(c) MAINTENANCE OF EXPENDITURES- Except as otherwise provided in subsection (e), the Secretary may make a grant to a State under this section only if the State agrees that the total expenditure of amounts of the State and political subdivisions of the State, exclusive of United States Government amounts, for the operation of the commercial driver’s license program will be maintained at a level at least equal to the average level of that expenditure by the State and political subdivisions of the State for the last 2 fiscal years before October 1, 2003.

    ‘(d) GOVERNMENT SHARE- Except as otherwise provided in subsection (e), the Secretary shall reimburse a State, from a grant made under this section, an amount that is not more than 80 percent of the costs incurred by the State in a fiscal year in implementing the commercial driver’s license improvements described in subsection (b). In determining those costs, the Secretary shall include in-kind contributions by the State.

    ‘(e) HIGH-PRIORITY ACTIVITIES-

      ‘(1) The Secretary may make a grant to a State agency, local government, or organization representing government agencies or officials for the full cost of research, development, demonstration projects, public education, or other special activities and projects relating to commercial driver licensing and motor vehicle safety that are of benefit to all jurisdictions or designed to address national safety concerns and circumstances.

      ‘(2) The Secretary may designate up to 10 percent of the amounts made available under section 4222(c)(3) of the Motor Carrier Safety Reauthorization Act of 2004 in a fiscal year for high-priority activities under subsection (e)(1).

    ‘(f) EMERGING ISSUES- The Secretary may designate up to 10 percent of the amounts made available under section 4222(c)(3) of the Motor Carrier Safety Reauthorization Act of 2004 in a fiscal year for allocation to a State agency, local government, or other person at the discretion of the Secretary to address emerging issues relating to commercial driver’s license improvements.

    ‘(g) APPORTIONMENT- Except as otherwise provided in subsections (e) and (f), all amounts available in a fiscal year to carry out this section shall be apportioned to States according to a formula prescribed by the Secretary.

    ‘(h) DEDUCTION FOR ADMINISTRATIVE EXPENSES- On October 1 of each fiscal year or as soon after that date as practicable, the Secretary may deduct, from amounts made available under section 4222(c)(3) of the Motor Carrier Safety Reauthorization Act of 2004 for that fiscal year, up to 0.75 percent of those amounts for administrative expenses incurred in carrying out this section in that fiscal year.’.

    (d) NONCOMPLIANCE WITH CDL REQUIREMENTS- Section 31314 is amended by striking subsections (a) and (b) and inserting the following:

    ‘(a) FIRST FISCAL YEAR- The Secretary of Transportation shall withhold up to 5 percent of the amount required to be apportioned to a State under section 104(b)(1), (3), and (4) of title 23 on the first day of the fiscal year after the first fiscal year beginning after September 30, 1992, throughout which the State does not comply substantially with a requirement of section 31311(a) of this title.

    ‘(b) SECOND FISCAL YEAR- The Secretary shall withhold up to 10 percent of the amount required to be apportioned to a State under section 104(b)(1), (3), and (4) of title 23 on the first day of each fiscal year after the second fiscal year beginning after September 30, 1992, throughout which the State does not comply substantially with a requirement of section 31311(a) of this title.’.

    (e) CONFORMING AMENDMENTS- (1) The chapter analysis for chapter 311 is amended--

      (A) by striking the item relating to Subchapter I, and inserting the following:

‘SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS’;

    and

      (B) by striking the item relating to section 31107, and inserting the following:

      ‘31107. Border enforcement grants.’.

    (2) Subchapter I of chapter 311 is amended by striking the subchapter heading and inserting the following:

‘SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS’

    (3) The chapter analysis for chapter 313 is amended by inserting the following after the item relating to section 31317:

      ‘31318. Grants for commercial driver’s license program improvements.’.

SEC. 4224. CDL WORKING GROUP.

    (a) IN GENERAL- The Secretary of Transportation shall convene a working group to study and address current impediments and foreseeable challenges to the commercial driver’s license program’s effectiveness and measures needed to realize the full safety potential of the commercial driver’s license program. The working group shall address such issues as State enforcement practices, operational procedures to detect and deter fraud, needed improvements for seamless information sharing between States, effective methods for accurately sharing electronic data between States, updated technology, and timely notification from judicial bodies concerning traffic and criminal convictions of commercial driver’s license holders.

    (b) MEMBERSHIP- Members of the working group should include State motor vehicle administrators, organizations representing government agencies or officials, members of the Judicial Conference, representatives of the trucking industry, representatives of labor organizations, safety advocates, and other significant stakeholders.

    (c) REPORT- Within 2 years after the date of enactment of this Act, the Secretary, on behalf of the working group, shall complete a report of the working group’s findings and recommendations for legislative, regulatory, and enforcement changes to improve the commercial driver’s license program. The Secretary shall promptly transmit the report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure.

    (d) FUNDING- From the funds authorized by section 4222(c)(3) of this title, $200,000 shall be made available for each of fiscal years 2004 and 2005 to carry out this section.

SEC. 4225. CDL LEARNER’S PERMIT PROGRAM.

    (a) IN GENERAL- Chapter 313 is amended--

      (1) by striking ‘time.’ in section 31302 and inserting ‘license, and may have only 1 learner’s permit at any time.’;

      (2) by inserting ‘and learners’ permits’ after ‘licenses’ the first place it appears in section 31308;

      (3) by striking ‘licenses.’ in section 31308 and inserting ‘licenses and permits.’;

      (4) by redesignating paragraphs (2) and (3) of section 31308 as paragraphs (3) and (4), respectively, and inserting after paragraph (1) the following:

      ‘(2) before a commercial driver’s license learner’s permit can be issued to an individual, the individual must pass a written test on the operation of a commercial motor vehicle that complies with the minimum standards prescribed by the Secretary under section 31305(a) of this title;’;

      (5) by inserting ‘or learner’s permit’ after ‘license’ each place it appears in paragraphs (3) and (4), as redesignated, of section 31308; and

      (6) by inserting ‘or learner’s permit’ after ‘license’ each place it appears in section 31309(b).

    (b) CONFORMING AMENDMENTS-

      (1) Section 31302 is amended by inserting ‘and learner’s permits’ in the section caption.

      (2) Sections 31308 and 31309 are each amended by inserting ‘and learner’s permit’ after ‘license’ in the section captions.

      (3) The chapter analysis for chapter 313 is amended by striking the item relating to section 31302 and inserting the following:

      ‘31302. Limitation on the number of driver’s licenses and learner’s permits.’.

      (4) The chapter analysis for chapter 313 is amended by striking the items relating to sections 31308 and 31309 and inserting the following:

      ‘31308. Commercial driver’s license and learner’s permit.

      ‘31309. Commercial driver’s license and learner’s permit information system.’.

SEC. 4226. HOBBS ACT.

    (a) Section 2342(3)(A) of title 28, United States Code, is amended to read as follows:

        ‘(A) the Secretary of Transportation issued pursuant to section 2, 9, 37, or 41 of the Shipping Act, 1916 (46 U.S.C. App. 802, 803, 808, 835, 839, and 841a) or pursuant to Part B or C of subtitle IV of title 49 or pursuant to subchapter III of chapter 311, chapter 313, and chapter 315 of Part B of subtitle VI of title 49; and’.

    (b) Section 351(a) is amended to read as follows:

    ‘(a) JUDICIAL REVIEW- An action of the Secretary of Transportation in carrying out a duty or power transferred under the Department of Transportation Act (Public Law 89-670; 80 Stat. 931), or an action of the Administrator of the Federal Railroad Administration, Federal Motor Carrier Safety Administration, or the Federal Aviation Administration in carrying out a duty or power specifically assigned to the Administrator by that Act, may be reviewed judicially to the same extent and in the same way as if the action had been an action by the department, agency, or instrumentality of the United States Government carrying out the duty or power immediately before the transfer or assignment.’.

    (c) Section 352 is amended to read as follows:

‘Sec. 352. Authority to carry out certain transferred duties and powers

    ‘In carrying out a duty or power transferred under the Department of Transportation Act (Public Law 89-670; 80 Stat. 931), the Secretary of Transportation and the Administrators of the Federal Railroad Administration, the Federal Motor Carrier Safety Administration, and the Federal Aviation Administration have the same authority that was vested in the department, agency, or instrumentality of the United States Government carrying out the duty or power immediately before the transfer. An action of the Secretary or Administrator in carrying out the duty or power has the same effect as when carried out by the department, agency, or instrumentality.’.

SEC. 4227. PENALTY FOR DENIAL OF ACCESS TO RECORDS.

    Section 521(b)(2) is amended by adding at the end the following:

    ‘(E) COPYING OF RECORDS AND ACCESS TO EQUIPMENT, LANDS, AND BUILDINGS- A motor carrier subject to chapter 51 of subtitle III, a motor carrier, broker, or freight forwarder subject to part B of subtitle IV, or the owner or operator of a commercial motor vehicle subject to part B of subtitle VI of this title who fails to allow the Secretary, or an employee designated by the Secretary, promptly upon demand to inspect and copy any record or inspect and examine equipment, lands, buildings and other property in accordance with sections 504(c), 5121(c), and 14122(b) of this title shall be liable to the United States for a civil penalty not to exceed $500 for each offense, and each day the Secretary is denied the right to inspect and copy any record or inspect and examine equipment, lands, buildings and other property shall constitute a separate offense, except that the total of all civil penalties against any violator for all offenses related to a single violation shall not exceed $5,000. It shall be a defense to such penalty that the records did not exist at the time of the Secretary’s request or could not be timely produced without unreasonable expense or effort. Nothing herein amends or supersedes any remedy available to the Secretary under sections 502(d), 507(c), or other provision of this title.’.

SEC. 4228. MEDICAL PROGRAM.

    (a) IN GENERAL- Subchapter III of chapter 311 is amended by adding at the end the following:

‘Sec. 31149. Medical program

    ‘(a) MEDICAL REVIEW BOARD-

      ‘(1) ESTABLISHMENT AND FUNCTION- The Secretary of Transportation shall establish a Medical Review Board to serve as an advisory committee to provide the Federal Motor Carrier Safety Administration with medical advice and recommendations on driver qualification medical standards and guidelines, medical examiner education, and medical research.

      ‘(2) COMPOSITION- The Medical Review Board shall be appointed by the Secretary and shall consist of 5 members selected from medical institutions and private practice. The membership shall reflect expertise in a variety of specialties relevant to the functions of the Federal Motor Carrier Safety Administration.

    ‘(b) CHIEF MEDICAL EXAMINER- The Secretary shall appoint a chief medical examiner for the Federal Motor Carrier Safety Administration.

    ‘(c) MEDICAL STANDARDS AND REQUIREMENTS- The Secretary, with the advice of the Medical Review Board and the chief medical examiner, shall--

      ‘(1) establish, review, and revise--

        ‘(A) medical standards for applicants for and holders of commercial driver’s licenses that will ensure that the physical condition of operators of commercial motor vehicles is adequate to enable them to operate the vehicles safely;

        ‘(B) requirements for periodic physical examinations of such operators performed by medical examiners who have received training in physical and medical examination standards and are listed on a national registry maintained by the Department of Transportation; and

        ‘(C) requirements for notification of the chief medical examiner if such an applicant or holder--

          ‘(i) fails to meet the applicable standards; or

          ‘(ii) is found to have a physical or mental disability or impairment that would interfere with the individual’s ability to operate a commercial motor vehicle safely;

      ‘(2) require each holder of a commercial driver’s license or learner’s permit to have a current valid medical certificate;

      ‘(3) issue such certificates to such holders and applicants who are found, upon examination, to be physically qualified to operate a commercial motor vehicle and to meet applicable medical standards; and

      ‘(4) develop, as appropriate, specific courses and materials for medical examiners listed in the national registry established under this section, and require those medical examiners to complete specific training, including refresher courses, to be listed in the registry.

    ‘(d) NATIONAL REGISTRY OF MEDICAL EXAMINERS- The Secretary, through the Federal Motor Carrier Safety Administration--

      ‘(1) shall establish and maintain a current national registry of medical examiners who are qualified to perform examination, testing, inspection, and issuance of a medical certificate;

      ‘(2) shall delegate to those examiners the authority to issue such certificates if the Medical Review Board develops a system to identify the medical examination forms uniquely and track them; and

      ‘(3) shall remove from the registry the name of any medical examiner that fails to meet the qualifications established by the Secretary for being listed in the registry.

    ‘(e) CONSULTATION AND COOPERATION WITH FAA-

      ‘(1) IN GENERAL- The Administrator of the Federal Motor Carrier Safety Administration shall consult the Administrator of the Federal Aviation Administration with respect to examinations, the issuance of certificates, standards, and procedures under this section in order to take advantage of such aspects of the Federal Aviation Administration’s airman certificate program under chapter 447 of this title as the Administrator deems appropriate for carrying out this section.

      ‘(2) USE OF FAA-QUALIFIED EXAMINERS- The Administrator of the Federal Motor Carrier Safety Administration and the Administrator of the Federal Aviation Administration are authorized and encouraged to execute a memorandum of understanding under which individuals holding or applying for a commercial driver’s license or learner’s permit may be examined, for purposes of this section, by medical examiners who are qualified to administer medical examinations for airman certificates under chapter 447 of this title and the regulations thereunder--

        ‘(A) until the national registry required by subsection (d) is fully established; and

        ‘(B) to the extent that the Administrators determine appropriate, after that registry is established.

    ‘(f) REGULATIONS- The Secretary is authorized to promulgate such regulations as may be necessary to carry out this section.’.

    (b) MEDICAL EXAMINERS- Section 31136(a)(3) is amended to read as follows:

      ‘(3) the physical condition of operators of commercial motor vehicles is adequate to enable them to operate the vehicles safely, and the periodic physical examinations required of such operators are performed by medical examiners who have received training in physical and medical examination standards and are listed on a national registry maintained by the Department of Transportation; and’.

    (c) DEFINITION OF MEDICAL EXAMINER- Section 31132 is amended--

      (1) by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively; and

      (2) by inserting after paragraph (5) the following:

      ‘(6) ‘medical examiner’ means an individual licensed, certified, or registered in accordance with regulations issued by the Federal Motor Carrier Safety Administration as a medical examiner.’.

    (d) CONFORMING AMENDMENT- The chapter analysis for chapter 311 is amended by inserting after the item relating to section 31148 the following:

      ‘31149. Medical program.’.

    (e) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect 1 year after the date of enactment of this Act.

SEC. 4229. OPERATION OF COMMERCIAL MOTOR VEHICLES BY INDIVIDUALS WHO USE INSULIN TO TREAT DIABETES MELLITUS.

    (a) REVISION OF FINAL RULE- Not later than 90 days after the date of the enactment of this Act, the Secretary shall revise the final rule to allow individuals who use insulin to treat their diabetes to operate commercial motor vehicles in interstate commerce. The revised final rule shall provide for the individual assessment of applicants who use insulin to treat their diabetes and who are, except for their use of insulin, otherwise qualified under the Federal Motor Carrier Safety Regulations. The revised final rule shall be consistent with the criteria described in section 4018 of the Transportation Equity Act for the 21st Century (49 U.S.C. 31305 note) and shall conclude the rulemaking process in the Federal Motor Carrier Safety Administration docket relating to qualifications of drivers with diabetes.

    (b) NO HISTORY OF DRIVING WHILE USING INSULIN REQUIRED FOR QUALIFICATION- The Secretary may not require individuals to have experience operating commercial motor vehicles while using insulin in order to qualify to operate a commercial motor vehicle in interstate commerce.

    (c) HISTORY OF DIABETES CONTROL- The Secretary may require an individual to have used insulin for a minimum period of time and demonstrated stable control of diabetes in order to qualify to operate a commercial motor vehicle in interstate commerce. Any such requirement, including any requirement with respect to the duration of such insulin use, shall be consistent with the findings of the expert medical panel reported in July 2000 in ‘A Report to Congress on the Feasibility of a Program to Qualify Individuals with Insulin-Treated Diabetes Mellitus to Operate Commercial Motor Vehicles in Interstate Commerce as Directed by the Transportation Equity Act for the 21st Century’.

    (d) APPLICABLE STANDARD- The Secretary shall ensure that individuals who use insulin to treat their diabetes are not held to a higher standard than other qualified commercial drivers, except to the extent that limited operating, monitoring, or medical requirements are deemed medically necessary by experts in the field of diabetes medicine.

SEC. 4230. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR CARRIERS.

    (a) TRANSPORTATION OF PASSENGERS-

      (1) Section 31138(a) is amended to read as follows:

    ‘(a) GENERAL REQUIREMENT- The Secretary of Transportation shall prescribe regulations to require minimum levels of financial responsibility sufficient to satisfy liability amounts established by the Secretary covering public liability and property damage for the transportation of passengers by motor vehicle in the United States between a place in a State and--

      ‘(1) a place in another State;

      ‘(2) another place in the same State through a place outside of that State; or

      ‘(3) a place outside the United States.’.

      (2) Section 31138(c) is amended by adding at the end the following:

      ‘(4) The Secretary may require a person, other than a motor carrier as defined in section 13102(12) of this title, transporting passengers by motor vehicle to file with the Secretary the evidence of financial responsibility specified in subsection (c)(1) of this section in an amount not less than that required by this section, and the laws of the State or States in which the person is operating, to the extent applicable. The extent of the financial responsibility must be sufficient to pay, not more than the amount of the financial responsibility, for each final judgment against the person for bodily injury to, or death of, an individual resulting from the negligent operation, maintenance, or use of motor vehicles, or for loss or damage to property, or both.’.

    (b) TRANSPORTATION OF PROPERTY- Section 31139 is amended--

      (1) by striking so much of subsection (b) as precedes paragraph (2) and inserting the following:

    ‘(b) GENERAL REQUIREMENTS AND MINIMUM AMOUNT-

      ‘(1) The Secretary of Transportation shall prescribe regulations to require minimum levels of financial responsibility sufficient to satisfy liability amounts established by the Secretary covering public liability, property damage, and environmental restoration for the transportation of property by motor vehicle in the United States between a place in a State and--

        ‘(A) a place in another State;

        ‘(B) another place in the same State through a place outside of that State; or

        ‘(C) a place outside the United States.’;

      (2) by aligning the left margin of paragraph (2) of subsection (b) with the left margin of paragraph (1) of that subsection (as amended by paragraph (1) of this subsection); and

      (3) by redesignating subsection (c) through (g) as subsections (d) through (h), respectively, and inserting after subsection (b) the following:

    ‘(c) FILING OF EVIDENCE OF FINANCIAL RESPONSIBILITY- The Secretary may require a motor private carrier, as defined in section 13102 of this title, to file with the Secretary the evidence of financial responsibility specified in subsection (b) of this section in an amount not less than that required by this section, and the laws of the State or States in which the motor private carrier is operating, to the extent applicable. The amount of the financial responsibility must be sufficient to pay, not more than the amount of the financial responsibility, for each final judgment against the motor private carrier for bodily injury to, or death of, an individual resulting from negligent operation, maintenance, or use of motor vehicles, or for loss or damage to property, or both.’.

SEC. 4231. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS AND FALSE RECORDS.

    (a) Section 521(b)(2)(B) is amended to read as follows:

      ‘(B) RECORDKEEPING AND REPORTING VIOLATIONS- A person required to make a report to the Secretary, answer a question, or make, prepare, or preserve a record under section 504 of this title or under any regulation issued by the Secretary pursuant to subchapter III of chapter 311 (except sections 31138 and 31139) or section 31502 of this title about transportation by motor carrier, motor carrier of migrant workers, or motor private carrier, or an officer, agent, or employee of that person--

        ‘(i) who does not make that report, does not specifically, completely, and truthfully answer that question in 30 days from the date the Secretary requires the question to be answered, or does not make, prepare, or preserve that record in the form and manner prescribed by the Secretary, shall be liable to the United States for a civil penalty in an amount not to exceed $1,000 for each offense, and each day of the violation shall constitute a separate offense, except that the total of all civil penalties assessed against any violator for all offenses related to any single violation shall not exceed $10,000; or

        ‘(ii) who knowingly falsifies, destroys, mutilates, or changes a required report or record, knowingly files a false report with the Secretary, knowingly makes or causes or permits to be made a false or incomplete entry in that record about an operation or business fact or transaction, or knowingly makes, prepares, or preserves a record in violation of a regulation or order of the Secretary, shall be liable to the United States for a civil penalty in an amount not to exceed $10,000 for each violation, if any such action can be shown to have misrepresented a fact that constitutes a violation other than a reporting or recordkeeping violation.’.

    (b) Section 31310(i)(2) is amended to read as follows:

      ‘(2) The Secretary shall prescribe regulations establishing sanctions and penalties related to violations of out-of-service orders by individuals operating commercial motor vehicles. The regulations shall require at least that--

        ‘(A) an operator of a commercial motor vehicle found to have committed a first violation of an out-of-service order shall be disqualified from operating such a vehicle for at least 180 days and liable for a civil penalty of at least $2,500;

        ‘(B) an operator of a commercial motor vehicle found to have committed a second violation of an out-of-service order shall be disqualified from operating such a vehicle for at least 2 years and not more than 5 years and liable for a civil penalty of at least $5,000;

        ‘(C) an employer that knowingly allows or requires an employee to operate a commercial motor vehicle in violation of an out-of-service order shall be liable for a civil penalty of not more than $25,000; and

        ‘(D) an employer that knowingly and willfully allows or requires an employee to operate a commercial motor vehicle in violation of an out-of-service order shall, upon conviction, be subject for each offense to imprisonment for a term not to exceed 1 year or a fine under title 18, United States Code, or both.’.

SEC. 4232. ELIMINATION OF COMMODITY AND SERVICE EXEMPTIONS.

    (a) Section 13506(a) is amended--

      (1) by striking paragraphs (6), (11), (12), (13), and (15);

      (2) by redesignating paragraphs (7), (8), (9), (10), and (14) as paragraphs (6), (7), (8), (9) and (10), respectively;

      (3) by inserting ‘or’ after the semicolon in paragraph (9), as redesignated; and

      (4) striking ‘13904(d); or’ in paragraph (1), as redesignated, and inserting ‘14904(d).’.

    (b) Section 13507 is amended by striking ‘(6), (8), (11), (12), or (13)’ and inserting ‘(6)’.

SEC. 4233. INTRASTATE OPERATIONS OF INTERSTATE MOTOR CARRIERS.

    (a) Subsection (a) of section 31144 is amended to read as follows:

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

      ‘(1) determine whether an owner or operator is fit to operate safely commercial motor vehicles, utilizing among other things the accident record of an owner or operator operating in interstate commerce and the accident record and safety inspection record of such owner or operator in operations that affect interstate commerce;

      ‘(2) periodically update such safety fitness determinations;

      ‘(3) make such final safety fitness determinations readily available to the public; and

      ‘(4) prescribe by regulation penalties for violations of this section consistent with section 521.’.

    (b) Subsection (c) of section 31144 is amended by adding at the end the following:

      ‘(5) TRANSPORTATION AFFECTING INTERSTATE COMMERCE- Owners or operators of commercial motor vehicles prohibited from operating in interstate commerce pursuant to paragraphs (1) through (3) of this section may not operate any commercial motor vehicle that affects interstate commerce until the Secretary determines that such owner or operator is fit.’.

    (c) Section 31144 is amended by redesignating subsections (d), (e), and the second subsection (c) as subsections (e), (f), and (g), respectively, and inserting after subsection (c) the following:

    ‘(d) DETERMINATION OF UNFITNESS BY A STATE- If a State that receives Motor Carrier Safety Assistance Program funds pursuant to section 31102 of this title determines, by applying the standards prescribed by the Secretary under subsection (b) of this section, that an owner or operator of commercial motor vehicles that has its principal place of business in that State and operates in intrastate commerce is unfit under such standards and prohibits the owner or operator from operating such vehicles in the State, the Secretary shall prohibit the owner or operator from operating such vehicles in interstate commerce until the State determines that the owner or operator is fit.’.

SEC. 4234. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.

    (a) IN GENERAL- Chapter 2 of title 18, United States Code, is amended by adding at the end the following:

‘Sec. 38. Commercial motor vehicles required to stop for inspections

    ‘(a) A driver of a commercial motor vehicle, as defined in section 31132(1) of title 49, shall stop and submit to inspection of the vehicle, driver, cargo, and required records when directed to do so by an authorized employee of the Federal Motor Carrier Safety Administration, Department of Transportation, at or in the vicinity of an inspection site. The driver shall not leave the inspection site until authorized to do so by an authorized employee.

    ‘(b) A driver of a commercial motor vehicle, as defined in subsection (a), who knowingly fails to stop for inspection when directed to do so by an authorized employee of the Federal Motor Carrier Safety Administration at or in the vicinity of an inspection site, or leaves the inspection site without authorization, shall be fined under this title or imprisoned not more than 1 year, or both.’.

    (b) AUTHORITY OF FMCSA- Chapter 203 of title 18, United States Code, is amended by adding at the end the following:

‘Sec. 3064. Powers of Federal Motor Carrier Safety Administration

    ‘Authorized employees of the Federal Motor Carrier Safety Administration may direct a driver of a commercial motor vehicle, as defined in 49 U.S.C. 31132(1), to stop for inspection of the vehicle, driver, cargo, and required records at or in the vicinity of an inspection site.’.

    (c) CONFORMING AMENDMENTS-

      (1) The chapter analysis for chapter 2 of title 18, United States Code, is amended by inserting after the item relating to section 37 the following:

      ‘38. Commercial motor vehicles required to stop for inspections.’.

      (2) The chapter analysis for chapter 203 of title 18, United States Code, is amended by inserting after the item relating to section 3063 the following:

      ‘3064. Powers of Federal Motor Carrier Safety Administration.’.

SEC. 4235. REVOCATION OF OPERATING AUTHORITY.

    Section 13905(e) is amended--

      (1) by striking paragraph (1) and inserting the following:

      ‘(1) PROTECTION OF SAFETY- Notwithstanding subchapter II of chapter 5 of title 5, the Secretary--

        ‘(A) may suspend the registration of a motor carrier, a freight forwarder, or a broker for failure to comply with requirements of the Secretary pursuant to section 13904(c) or 13906 of this title, or an order or regulation of the Secretary prescribed under those sections; and

        ‘(B) shall revoke the registration of a motor carrier that has been prohibited from operating in interstate commerce for failure to comply with the safety fitness requirements of section 31144 of this title.’;

      (2) by striking ‘may suspend a registration’in paragraph (2) and inserting ‘shall revoke the registration’; and

      (3) by striking paragraph (3) and inserting the following:

      ‘(3) NOTICE; PERIOD OF SUSPENSION- The Secretary may suspend or revoke under this subsection the registration only after giving notice of the suspension or revocation to the registrant. A suspension remains in effect until the registrant complies with the applicable sections or, in the case of a suspension under paragraph (2), until the Secretary revokes the suspension.’.

SEC. 4236. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER MANAGEMENT.

    (a) IN GENERAL- Section 31135 is amended--

      (1) by inserting ‘(a) IN GENERAL- ’ before ‘Each’; and

      (2) by adding at the end the following:

    ‘(b) PATTERN OF NON-COMPLIANCE- If an officer of a motor carrier engages in a pattern or practice of avoiding compliance, or masking or otherwise concealing non-compliance, with regulations on commercial motor vehicle safety prescribed under this subchapter, the Secretary may suspend, amend, or revoke any part of the motor carrier’s registration under section 13905 of this title.

    ‘(c) LIST OF PROPOSED OFFICERS- Each person seeking registration as a motor carrier under section 13902 of this title shall submit a list of the proposed officers of the motor carrier. If the Secretary determines that any of the proposed officers has previously engaged in a pattern or practice of avoiding compliance, or masking or otherwise concealing non-compliance, with regulations on commercial motor vehicle safety prescribed under this chapter, the Secretary may deny the person’s application for registration as a motor carrier under section 13902(a)(3).

    ‘(d) REGULATIONS- The Secretary shall by regulation establish standards to implement subsections (b) and (c).

    ‘(e) DEFINITIONS- In this section:

      ‘(1) MOTOR CARRIER- The term motor carrier has the meaning given the term in section 13102(12) of this title; and

      ‘(2) OFFICER- The term officer means an owner, chief executive officer, chief operating officer, chief financial officer, safety director, vehicle maintenance supervisor and driver supervisor of a motor carrier, regardless of the title attached to those functions.’.

    (b) REGISTRATION OF CARRIERS- Section 13902(a)(1)(B) is amended to read as follows:

      ‘(B) any safety regulations imposed by the Secretary, the duties of employers and employees established by the Secretary under section 31135, and the safety fitness requirements established by the Secretary under section 31144; and’.

SEC. 4237. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.

    (a) IN GENERAL- Section 31108 is amended to read as follows:

‘Sec. 31108. Motor carrier research and technology program

    ‘(a) RESEARCH, TECHNOLOGY, AND TECHNOLOGY TRANSFER ACTIVITIES-

      ‘(1) The Secretary of Transportation shall establish and carry out a motor carrier and motor coach research and technology program. The Secretary may carry out research, development, technology, and technology transfer activities with respect to--

        ‘(A) the causes of accidents, injuries and fatalities involving commercial motor vehicles; and

        ‘(B) means of reducing the number and severity of accidents, injuries and fatalities involving commercial motor vehicles.

      ‘(2) The Secretary may test, develop, or assist in testing and developing any material, invention, patented article, or process related to the research and technology program.

      ‘(3) The Secretary may use the funds appropriated to carry out this section for training or education of commercial motor vehicle safety personnel, including, but not limited to, training in accident reconstruction and detection of controlled substances or other contraband, and stolen cargo or vehicles.

      ‘(4) The Secretary may carry out this section--

        ‘(A) independently;

        ‘(B) in cooperation with other Federal departments, agencies, and instrumentalities and Federal laboratories; or

        ‘(C) by making grants to, or entering into contracts, cooperative agreements, and other transactions with, any Federal laboratory, State agency, authority, association, institution, for-profit or non-profit corporation, organization, foreign country, or person.

      ‘(5) The Secretary shall use funds made available to carry out this section to develop, administer, communicate, and promote the use of products of research, technology, and technology transfer programs under this section.

    ‘(b) COLLABORATIVE RESEARCH AND DEVELOPMENT-

      ‘(1) To advance innovative solutions to problems involving commercial motor vehicle and motor carrier safety, security, and efficiency, and to stimulate the deployment of emerging technology, the Secretary may carry out, on a cost-shared basis, collaborative research and development with--

        ‘(A) non-Federal entities, including State and local governments, foreign governments, colleges and universities, corporations, institutions, partnerships, and sole proprietorships that are incorporated or established under the laws of any State; and

        ‘(B) Federal laboratories.

      ‘(2) In carrying out this subsection, the Secretary may enter into cooperative research and development agreements (as defined in section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a)).

      ‘(3)(A) The Federal share of the cost of activities carried out under a cooperative research and development agreement entered into under this subsection shall not exceed 50 percent, except that if there is substantial public interest or benefit, the Secretary may approve a greater Federal share.

      ‘(B) All costs directly incurred by the non-Federal partners, including personnel, travel, and hardware or software development costs, shall be credited toward the non-Federal share of the cost of the activities described in subparagraph (A).

      ‘(4) The research, development, or use of a technology under a cooperative research and development agreement entered into under this subsection, including the terms under which the technology may be licensed and the resulting royalties may be distributed, shall be subject to the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.).

      ‘(5) Section 5 of title 41, United States Code, shall not apply to a contract or agreement entered into under this section.

    ‘(c) AVAILABILITY OF AMOUNTS- The amounts made available under section 4222(a) of the Motor Carrier Safety Reauthorization Act of 2004 to carry out this section shall remain available until expended.

    ‘(d) CONTRACT AUTHORITY- Approval by the Secretary of a grant with funds made available under section 4222(a) of the Motor Carrier Safety Reauthorization Act of 2004 to carry out this section imposes upon the United States Government a contractual obligation for payment of the Government’s share of costs incurred in carrying out the objectives of the grant.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 311 is amended by striking the item relating to section 31108, and inserting the following:

      ‘31108. Motor carrier research and technology program.’.

SEC. 4238. REVIEW OF COMMERCIAL ZONE EXEMPTION PROVISION.

    (a) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall complete a review of part 372 of title 49, Code of Federal Regulations, as it pertains to commercial zone exemptions (excluding border commercial zones) from Department of Transportation and Surface Transportation Board regulations governing interstate commerce. The Secretary shall determine whether such exemptions should continue to apply as written, should undergo revision, or should be revoked. The Secretary shall submit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a report of the review not later than 14 months after such date of enactment.

    (b) NOTICE- The Secretary shall publish notice of the review required by subsection (a) and provide and opportunity for the public to submit comments on the effect of continuing, revising, or revoking the commercial zone exemptions in part 372 of title 49, Code of Federal Regulations.

SEC. 4239. INTERNATIONAL COOPERATION.

    (a) IN GENERAL- Chapter 311 is amended by inserting at the end the following:

‘Subchapter IV--Miscellaneous

‘Sec. 31161. International cooperation

    ‘The Secretary is authorized to use funds appropriated under section 31104(i) of this title to participate and cooperate in international activities to enhance motor carrier, commercial motor vehicle, driver, and highway safety by such means as exchanging information, conducting research, and examining needs, best practices, and new technology.’.

    (b) CLERICAL AMENDMENT- The chapter analysis for chapter 311 is amended by adding at the end the following:

‘SUBCHAPTER IV--MISCELLANEOUS

      ‘31161. International cooperation.’.

SEC. 4240. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM MANAGEMENT.

    (a) IN GENERAL- Section 31106(b) is amended--

      (1) by striking paragraphs (2) and (3) and inserting the following:

      ‘(2) DESIGN- The program shall link Federal motor carrier safety information systems with State commercial vehicle registration and licensing systems and shall be designed to enable a State to--

        ‘(A) determine the safety fitness of a motor carrier or registrant when licensing or registering the registrant or motor carrier or while the license or registration is in effect; and

        ‘(B) deny, suspend, or revoke the commercial motor vehicle registrations of a motor carrier or registrant that has been issued an operations out-of-service order by the Secretary.

      ‘(3) CONDITIONS FOR PARTICIPATION- The Secretary shall require States, as a condition of participation in the program, to--

        ‘(A) comply with the uniform policies, procedures, and technical and operational standards prescribed by the Secretary under subsection (a)(4);

        ‘(B) possess the authority to impose sanctions relating to commercial motor vehicle registration on the basis of a Federal safety fitness determination; and

        ‘(C) cancel the motor vehicle registration and seize the registration plates of an employer found liable under section 31310(i)(2)(C) of this title for knowingly allowing or requiring an employee to operate a commercial motor vehicle in violation of an out-of-service order.’; and

      (2) by striking paragraph (4).

    (b) PERFORMANCE AND REGISTRATION INFORMATION SYSTEM MANAGEMENT GRANTS-

      (1) Subchapter I of chapter 311, as amended by this title, is further amended by adding at the end the following:

‘Sec. 31109. Performance and Registration Information System Management

    ‘(a) IN GENERAL- From the funds authorized by section 4222(c)(2) of the Motor Carrier Safety Reauthorization Act of 2004, the Secretary may make a grant in a fiscal year to a State to implement the performance and registration information system management requirements of section 31106(b).

    ‘(b) AVAILABILITY OF AMOUNTS- Amounts made available to a State under section 4222(c)(2) of the Motor Carrier Safety Reauthorization Act of 2004 to carry out this section shall remain available until expended.

    ‘(c) SECRETARY’S APPROVAL- Approval by the Secretary of a grant to a State under section 4222(c)(2) of the Motor Carrier Safety Reauthorization Act of 2004 to carry out this section is a contractual obligation of the Government for payment of the amount of the grant.’.

      (2) CONFORMING AMENDMENT- The chapter analysis for chapter 311 is amended by inserting after the item relating to section 31108 the following:

      ‘31109. Performance and Registration Information System Management.’.

SEC. 4241. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS DEPLOYMENT.

    (a) IN GENERAL- The Secretary shall carry out a commercial vehicle information systems and networks program to--

      (1) improve the safety and productivity of commercial vehicles; and

      (2) reduce costs associated with commercial vehicle operations and Federal and State commercial vehicle regulatory requirements.

    (b) PURPOSE- The program shall advance the technological capability and promote the deployment of intelligent transportation system applications for commercial vehicle operations, including commercial vehicle, commercial driver, and carrier-specific information systems and networks.

    (c) CORE DEPLOYMENT GRANTS-

      (1) IN GENERAL- The Secretary shall make grants to eligible States for the core deployment of commercial vehicle information systems and networks.

      (2) ELIGIBILITY- To be eligible for a core deployment grant under this section, a State--

        (A) shall have a commercial vehicle information systems and networks program plan and a top level system design approved by the Secretary;

        (B) shall certify to the Secretary that its commercial vehicle information systems and networks deployment activities, including hardware procurement, software and system development, and infrastructure modifications, are consistent with the national intelligent transportation systems and commercial vehicle information systems and networks architectures and available standards, and promote interoperability and efficiency to the extent practicable; and

        (C) shall agree to execute interoperability tests developed by the Federal Motor Carrier Safety Administration to verify that its systems conform with the national intelligent transportation systems architecture, applicable standards, and protocols for commercial vehicle information systems and networks.

      (3) AMOUNT OF GRANTS- The maximum aggregate amount a State may receive under this section for the core deployment of commercial vehicle information systems and networks may not exceed $2,500,000.

      (4) USE OF FUNDS- Funds from a grant under this subsection may only be used for the core deployment of commercial vehicle information systems and networks. Eligible States that have either completed the core deployment of commercial vehicle information systems and networks or completed such deployment before core deployment grant funds are expended may use the remaining core deployment grant funds for the expanded deployment of commercial vehicle information systems and networks in their State.

    (d) EXPANDED DEPLOYMENT GRANTS-

      (1) IN GENERAL- For each fiscal year, from the funds remaining after the Secretary has made core deployment grants under subsection (c) of this section, the Secretary may make grants to each eligible State, upon request, for the expanded deployment of commercial vehicle information systems and networks.

      (2) ELIGIBILITY- Each State that has completed the core deployment of commercial vehicle information systems and networks is eligible for an expanded deployment grant.

      (3) AMOUNT OF GRANTS- Each fiscal year, the Secretary may distribute funds available for expanded deployment grants equally among the eligible States, but not to exceed $1,000,000 per State.

      (4) USE OF FUNDS- A State may use funds from a grant under this subsection only for the expanded deployment of commercial vehicle information systems and networks.

    (e) FEDERAL SHARE- The Federal share of the cost of a project payable from funds made available to carry out this section shall not exceed 50 percent. The total Federal share of the cost of a project payable from all eligible sources shall not exceed 80 percent.

    (f) Applicability of Title 23, United States Code- Funds authorized to be appropriated under section 4222(c)(4) shall be available for obligation in the same manner and to the same extent as if such funds were apportioned under chapter 1 of title 23, United States Code, except that such funds shall remain available until expended.

    (g) DEFINITIONS- In this section:

      (1) COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS- The term ‘commercial vehicle information systems and networks’ me