[Congressional Record Volume 143, Number 139 (Wednesday, October 8, 1997)]
[Senate]
[Pages S10661-S10711]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               THE INTERMODAL TRANSPORTATION ACT OF 1997

                                 ______
                                 

                        LOTT AMENDMENT NO. 1317

  Mr. LOTT proposed an amendment to the instructions to the motion to 
recommit the bill, S. 1173, supra; as follows:

       At the end of the instructions add the following:

[[Page S10662]]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Intermodal 
     Surface Transportation Efficiency Act of 1997''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition.

                    TITLE I--SURFACE TRANSPORTATION

Sec. 1001. Short title.

                     Subtitle A--General Provisions

Sec. 1101. Authorizations.
Sec. 1102. Apportionments.
Sec. 1103. Obligation ceiling.
Sec. 1104. Obligation authority under surface transportation program.
Sec. 1105. Emergency relief.
Sec. 1106. Federal lands highways program.
Sec. 1107. Recreational trails program.
Sec. 1108. Value pricing pilot program.
Sec. 1109. Highway use tax evasion projects.
Sec. 1110. Bicycle transportation and pedestrian walkways.
Sec. 1111. Disadvantaged business enterprises.
Sec. 1112. Federal share payable.
Sec. 1113. Studies and reports.
Sec. 1114. Definitions.
Sec. 1115. Cooperative Federal Lands Transportation Program.
Sec. 1116. Trade corridor and border crossing planning and border 
              infrastructure.
Sec. 1117. Appalachian development highway system.
Sec. 1118. Interstate 4R and bridge discretionary program.
Sec. 1119. Magnetic levitation transportation technology deployment 
              program.
Sec. 1120. Woodrow Wilson Memorial Bridge.
Sec. 1121. National Highway System components.
Sec. 1122. Highway bridge replacement and rehabilitation.
Sec. 1123. Congestion mitigation and air quality improvement program.
Sec. 1124. Safety belt use law requirements.
Sec. 1125. Sense of the Senate concerning reliance on private 
              enterprise.
Sec. 1126. Study of use of uniformed police officers on Federal-aid 
              highway construction projects.
Sec. 1127. Contracting for engineering and design services.

            Subtitle B--Program Streamlining and Flexibility

                     Chapter 1--General Provisions

Sec. 1201. Administrative expenses.
Sec. 1202. Real property acquisition and corridor preservation.
Sec. 1203. Availability of funds.
Sec. 1204. Payments to States for construction.
Sec. 1205. Proceeds from the sale or lease of real property.
Sec. 1206. Metric conversion at State option.
Sec. 1207. Report on obligations.
Sec. 1208. Terminations.
Sec. 1209. Interstate maintenance.

                      Chapter 2--Project Approval

Sec. 1221. Transfer of highway and transit funds.
Sec. 1222. Project approval and oversight.
Sec. 1223. Surface transportation program.
Sec. 1224. Design-build contracting.
Sec. 1225. Integrated decisionmaking process.

                 Chapter 3--Eligibility and Flexibility

Sec. 1231. Definition of operational improvement.
Sec. 1232. Eligibility of ferry boats and ferry terminal facilities.
Sec. 1233. Flexibility of safety programs.
Sec. 1234. Eligibility of projects on the National Highway System.
Sec. 1235. Eligibility of projects under the surface transportation 
              program.
Sec. 1236. Design flexibility.

                          Subtitle C--Finance

                     Chapter 1--General Provisions

Sec. 1301. State infrastructure bank program.

    Chapter 2--Transportation Infrastructure Finance and Innovation

Sec. 1311. Short title.
Sec. 1312. Findings.
Sec. 1313. Definitions.
Sec. 1314. Determination of eligibility and project selection.
Sec. 1315. Secured loans.
Sec. 1316. Lines of credit.
Sec. 1317. Project servicing.
Sec. 1318. Office of Infrastructure Finance.
Sec. 1319. State and local permits.
Sec. 1320. Regulations.
Sec. 1321. Funding.
Sec. 1322. Report to Congress.

                           Subtitle D--Safety

Sec. 1401. Operation lifesaver.
Sec. 1402. Railway-highway crossing hazard elimination in high speed 
              rail corridors.
Sec. 1403. Railway-highway crossings.
Sec. 1404. Hazard elimination program.
Sec. 1405. Minimum penalties for repeat offenders for driving while 
              intoxicated or driving under the influence.
Sec. 1406. Safety incentive grants for use of seat belts.
Sec. 1407. Automatic crash protection unbelted testing standard.

                        Subtitle E--Environment

Sec. 1501. National scenic byways program.
Sec. 1502. Public-private partnerships.
Sec. 1503. Wetland restoration pilot program.

                          Subtitle F--Planning

Sec. 1601. Metropolitan planning.
Sec. 1602. Statewide planning.
Sec. 1603. Advanced travel forecasting procedures program.
Sec. 1604. Transportation and community and system preservation pilot 
              program.

                   Subtitle G--Technical Corrections

Sec. 1701. Federal-aid systems.
Sec. 1702. Miscellaneous technical corrections.
Sec. 1703. Nondiscrimination.
Sec. 1704. State transportation department.

                  Subtitle H--Miscellaneous Provisions

Sec. 1801. Designation of portion of State Route 17 in New York and 
              Pennsylvania as Interstate Route 86.

                   TITLE II--RESEARCH AND TECHNOLOGY

                   Subtitle A--Research and Training

Sec. 2001. Strategic research plan.
Sec. 2002. Multimodal Transportation Research and Development Program.
Sec. 2003. National university transportation centers.
Sec. 2004. Bureau of Transportation Statistics.
Sec. 2005. Research and technology program.
Sec. 2006. Advanced research program.
Sec. 2007. Long-term pavement performance program.
Sec. 2008. State planning and research program.
Sec. 2009. Education and training.
Sec. 2010. International highway transportation outreach program.
Sec. 2011. National technology deployment initiatives and partnerships 
              program.
Sec. 2012. Infrastructure investment needs report.
Sec. 2013. Innovative bridge research and construction program.
Sec. 2014. Use of Bureau of Indian Affairs administrative funds.
Sec. 2015. Study of future strategic highway research program.
Sec. 2016. Joint partnerships for advanced vehicles, components, and 
              infrastructure program.
Sec. 2017. Transportation and environment cooperative research program.
Sec. 2018. Conforming amendments.

             Subtitle B--Intelligent Transportation Systems

Sec. 2101. Short title.
Sec. 2102. Findings.
Sec. 2103. Intelligent transportation systems.
Sec. 2104. Conforming amendment.

                          Subtitle C--Funding

Sec. 2201. Funding.

     SEC. 2. DEFINITION.

       In this Act, the term ``Secretary'' means the Secretary of 
     Transportation.
                    TITLE I--SURFACE TRANSPORTATION

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``Surface Transportation Act 
     of 1997''.
                     Subtitle A--General Provisions

     SEC. 1101. AUTHORIZATIONS.

       For the purpose of carrying out title 23, United States 
     Code, the following sums shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account):
       (1) Interstate and national highway system program.--For 
     the Interstate and National Highway System program under 
     section 103 of that title $11,979,000,000 for fiscal year 
     1998, $11,808,000,000 for fiscal year 1999, $11,819,000,000 
     for fiscal year 2000, $11,916,000,000 for fiscal year 2001, 
     $12,242,000,000 for fiscal year 2002, and $12,776,000,000 for 
     fiscal year 2003, of which--
       (A) $4,600,000,000 for fiscal year 1998, $4,609,000,000 for 
     fiscal year 1999, $4,637,000,000 for fiscal year 2000, 
     $4,674,000,000 for fiscal year 2001, $4,773,000,000 for 
     fiscal year 2002, and $4,918,000,000 for fiscal year 2003 
     shall be available for the Interstate maintenance component; 
     and
       (B) $1,400,000,000 for fiscal year 1998, $1,403,000,000 for 
     fiscal year 1999, $1,411,000,000 for fiscal year 2000, 
     $1,423,000,000 for fiscal year 2001, $1,453,000,000 for 
     fiscal year 2002, and $1,497,000,000 for fiscal year 2003 
     shall be available for the Interstate bridge component.
       (2) Surface transportation program.--For the surface 
     transportation program under section 133 of that title 
     $7,000,000,000 for fiscal year 1998, $7,014,000,000 for 
     fiscal year 1999, $7,056,000,000 for fiscal year 2000, 
     $7,113,000,000 for fiscal year 2001, $7,263,000,000 for 
     fiscal year 2002, and $7,484,000,000 for fiscal year 2003.
       (3) Congestion mitigation and air quality improvement 
     program.--For the congestion mitigation and air quality 
     improvement program under section 149 of that title 
     $1,150,000,000 for fiscal year 1998, $1,152,000,000 for 
     fiscal year 1999, $1,159,000,000 for fiscal year 2000, 
     $1,169,000,000 for fiscal year 2001, $1,193,000,000 for 
     fiscal year 2002, and $1,230,000,000 for fiscal year 2003.
       (4) Federal lands highways program.--
       (A) Indian reservation roads.--For Indian reservation roads 
     under section 204 of that title $200,000,000 for each of 
     fiscal years 1998 through 2003.
       (B) Parkways and park roads.--For parkways and park roads 
     under section 204 of that title $90,000,000 for each of 
     fiscal years 1998 through 2003.

[[Page S10663]]

       (C) Public lands highways.--For public lands highways under 
     section 204 of that title $172,000,000 for each of fiscal 
     years 1998 through 2003.
       (D) Cooperative federal lands transportation program.--For 
     the Cooperative Federal Lands Transportation Program under 
     section 207 of that title $74,000,000 for each of fiscal 
     years 1998 through 2003.

     SEC. 1102. APPORTIONMENTS.

       (a) In General.--Section 104 of title 23, United States 
     Code, is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Apportionments.--On October 1 of each fiscal year, 
     the Secretary, after making the deduction authorized by 
     subsection (a) and the set-asides authorized by subsection 
     (f), shall apportion the remainder of the sums authorized to 
     be appropriated for expenditure on the National Highway 
     System, the congestion mitigation and air quality improvement 
     program, and the surface transportation program, for that 
     fiscal year, among the States in the following manner:
       ``(1) Interstate and national highway system program.--
       ``(A) Interstate maintenance component.--For resurfacing, 
     restoring, rehabilitating, and reconstructing the Interstate 
     System--
       ``(i) 50 percent in the ratio that--

       ``(I) the total lane miles on Interstate System routes 
     designated under--

       ``(aa) section 103;
       ``(bb) section 139(a) before March 9, 1984 (other than 
     routes on toll roads not subject to a Secretarial agreement 
     under section 105 of the Federal-Aid Highway Act of 1978 (92 
     Stat. 2692)); and
       ``(cc) section 139(c) (as in effect on the day before the 
     date of enactment of the Intermodal Surface Transportation 
     Efficiency Act of 1997);

     in each State; bears to

       ``(II) the total of all such lane miles in all States; and

       ``(ii) 50 percent in the ratio that--

       ``(I) the total vehicle miles traveled on lanes on 
     Interstate System routes designated under--

       ``(aa) section 103;
       ``(bb) section 139(a) before March 9, 1984 (other than 
     routes on toll roads not subject to a Secretarial agreement 
     under section 105 of the Federal-Aid Highway Act of 1978 (92 
     Stat. 2692)); and
       ``(cc) section 139(c) (as in effect on the day before the 
     date of enactment of the Intermodal Surface Transportation 
     Efficiency Act of 1997);

     in each State; bears to
       ``(II) the total of all such vehicle miles traveled in all 
     States.

       ``(B) Interstate bridge component.--For resurfacing, 
     restoring, rehabilitating, and reconstructing bridges on the 
     Interstate System, in the ratio that--
       ``(i) the total square footage of structurally deficient 
     and functionally obsolete bridges on the Interstate System 
     (other than bridges on toll roads not subject to a 
     Secretarial agreement under section 105 of the Federal-Aid 
     Highway Act of 1978 (92 Stat. 2692)) in each State; bears to
       ``(ii) the total square footage of structurally deficient 
     and functionally obsolete bridges on the Interstate System 
     (other than bridges on toll roads not subject to a 
     Secretarial agreement under section 105 of the Federal-Aid 
     Highway Act of 1978 (92 Stat. 2692)) in all States.
       ``(C) Other national highway system component.--
       ``(i) In general.--For the National Highway System 
     (excluding funds apportioned under subparagraph (A) or (B)), 
     $36,400,000 for each fiscal year to the Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of Northern Mariana 
     Islands and the remainder apportioned as follows:

       ``(I) 20 percent of the apportionments in the ratio that--

       ``(aa) the total lane miles of principal arterial routes 
     (excluding Interstate System routes) in each State; bears to
       ``(bb) the total lane miles of principal arterial routes 
     (excluding Interstate System routes) in all States.

       ``(II) 29 percent of the apportionments in the ratio that--

       ``(aa) the total vehicle miles traveled on lanes on 
     principal arterial routes (excluding Interstate System 
     routes) in each State; bears to
       ``(bb) the total vehicle miles traveled on lanes on 
     principal arterial routes (excluding Interstate System 
     routes) in all States.

       ``(III) 18 percent of the apportionments in the ratio 
     that--

       ``(aa) the total square footage of structurally deficient 
     and functionally obsolete bridges on principal arterial 
     routes (excluding bridges on Interstate System routes (other 
     than bridges on toll roads not subject to a Secretarial 
     agreement under section 105 of the Federal-Aid Highway Act of 
     1978 (92 Stat. 2692))) in each State; bears to
       ``(bb) the total square footage of structurally deficient 
     and functionally obsolete bridges on principal arterial 
     routes (excluding bridges on Interstate System routes (other 
     than bridges on toll roads not subject to a Secretarial 
     agreement under section 105 of the Federal-Aid Highway Act of 
     1978 (92 Stat. 2692))) in all States.

       ``(IV) 24 percent of the apportionments in the ratio that--

       ``(aa) the total diesel fuel used on highways in each 
     State; bears to
       ``(bb) the total diesel fuel used on highways in all 
     States.

       ``(V) 9 percent of the apportionments in the ratio that--

       ``(aa) the quotient obtained by dividing the total lane 
     miles on principal arterial highways in each State by the 
     total population of the State; bears to
       ``(bb) the quotient obtained by dividing the total lane 
     miles on principal arterial highways in all States by the 
     total population of all States.
       ``(ii) Data.--Each calculation under clause (i) shall be 
     based on the latest available data.
       ``(D) Minimum apportionment.--Notwithstanding subparagraphs 
     (A) through (C), each State shall receive a minimum of \1/2\ 
     of 1 percent of the funds apportioned under this paragraph.
       ``(2) Congestion mitigation and air quality improvement 
     program.--
       ``(A) In general.--For the congestion mitigation and air 
     quality improvement program, in the ratio that--
       ``(i) the total of all weighted nonattainment and 
     maintenance area populations in each State; bears to
       ``(ii) the total of all weighted nonattainment and 
     maintenance area populations in all States.
       ``(B) Calculation of weighted nonattainment and maintenance 
     area population.--Subject to subparagraph (C), for the 
     purpose of subparagraph (A), the weighted nonattainment and 
     maintenance area population shall be calculated by 
     multiplying the population of each area in a State that was a 
     nonattainment area or maintenance area as described in 
     section 149(b) for ozone or carbon monoxide by a factor of--
       ``(i) 0.8 if--

       ``(I) at the time of the apportionment, the area is a 
     maintenance area; or
       ``(II) at the time of the apportionment, the area is 
     classified as a submarginal ozone nonattainment area under 
     the Clean Air Act (42 U.S.C. 7401 et seq.);

       ``(ii) 1.0 if, at the time of the apportionment, the area 
     is classified as a marginal ozone nonattainment area 
     under subpart 2 of part D of title I of the Clean Air Act 
     (42 U.S.C. 7511 et seq.);
       ``(iii) 1.1 if, at the time of the apportionment, the area 
     is classified as a moderate ozone nonattainment area under 
     that subpart;
       ``(iv) 1.2 if, at the time of the apportionment, the area 
     is classified as a serious ozone nonattainment area under 
     that subpart;
       ``(v) 1.3 if, at the time of the apportionment, the area is 
     classified as a severe ozone nonattainment area under that 
     subpart;
       ``(vi) 1.4 if, at the time of the apportionment, the area 
     is classified as an extreme ozone nonattainment area under 
     that subpart; or
       ``(vii) 1.0 if, at the time of the apportionment, the area 
     is not a nonattainment or maintenance area as described in 
     section 149(b) for ozone, but is classified under subpart 3 
     of part D of title I of that Act (42 U.S.C. 7512 et seq.) as 
     a nonattainment area described in section 149(b) for carbon 
     monoxide.
       ``(C) Additional adjustment for carbon monoxide areas.--
       ``(i) Carbon monoxide nonattainment areas.--If, in addition 
     to being classified as a nonattainment or maintenance area 
     for ozone, the area was also classified under subpart 3 of 
     part D of title I of that Act (42 U.S.C. 7512 et seq.) as a 
     nonattainment area described in section 149(b) for carbon 
     monoxide, the weighted nonattainment or maintenance area 
     population of the area, as determined under clauses (i) 
     through (vi) of subparagraph (B), shall be further multiplied 
     by a factor of 1.2.
       ``(ii) Carbon monoxide maintenance areas.--If, in addition 
     to being classified as a nonattainment or maintenance area 
     for ozone, the area was at one time also classified under 
     subpart 3 of part D of title I of that Act (42 U.S.C. 7512 et 
     seq.) as a nonattainment area described in section 149(b) for 
     carbon monoxide but has been redesignated as a maintenance 
     area, the weighted nonattainment or maintenance area 
     population of the area, as determined under clauses (i) 
     through (vi) of subparagraph (B), shall be further multiplied 
     by a factor of 1.1.
       ``(D) Minimum apportionment.--Notwithstanding any other 
     provision of this paragraph, each State shall receive a 
     minimum of \1/2\ of 1 percent of the funds apportioned under 
     this paragraph.
       ``(E) Determinations of population.--In determining 
     population figures for the purposes of this paragraph, the 
     Secretary shall use the latest available annual estimates 
     prepared by the Secretary of Commerce.
       ``(3) Surface transportation program.--
       ``(A) In general.--For the surface transportation program, 
     in accordance with the following formula:
       ``(i) 20 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) 30 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) 25 percent of the apportionments in the ratio 
     that--

       ``(I) the total square footage of structurally deficient 
     and functionally obsolete bridges on Federal-aid highways 
     (excluding

[[Page S10664]]

     bridges described in subparagraphs (B) and (C)(i)(III) of 
     paragraph (1)) in each State; bears to
       ``(II) the total square footage of structurally deficient 
     and functionally obsolete bridges on Federal-aid highways 
     (excluding bridges described in subparagraphs (B) and 
     (C)(i)(III) of paragraph (1)) in all States.

       ``(iv) 25 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) Data.--Each calculation under subparagraph (A) shall 
     be based on the latest available data.
       ``(C) Minimum apportionment.--Notwithstanding subparagraph 
     (A), each State shall receive a minimum of \1/2\ of 1 percent 
     of the funds apportioned under this paragraph.''.
       (b) Effect of Certain Amendments.--Section 104 of title 23, 
     United States Code, is amended by striking subsection (h) and 
     inserting the following:
       ``(h) Effect of Certain Amendments.--Notwithstanding any 
     other provision of law, deposits into the Highway Trust Fund 
     resulting from the amendments made by section 901 of the 
     Taxpayer Relief Act of 1997 shall not be taken into account 
     in determining the apportionments and allocations that any 
     State shall be entitled to receive under the Intermodal 
     Surface Transportation Efficiency Act of 1997 and this title 
     .''.
       (c) ISTEA Transition.--
       (1) In general.--For each of fiscal years 1998 through 
     2003, the Secretary shall determine, with respect to each 
     State--
       (A) the total apportionments for the fiscal year under 
     section 104 of title 23, United States Code, for the 
     Interstate and National Highway System program, the surface 
     transportation program, metropolitan planning, and the 
     congestion mitigation and air quality improvement program;
       (B) the annual average of the total apportionments during 
     the period of fiscal years 1992 through 1997 for all Federal-
     aid highway programs (as defined in section 101 of title 23, 
     United States Code), excluding apportionments for the Federal 
     lands highways program under section 204 of that title;
       (C) the annual average of the total apportionments during 
     the period of fiscal years 1992 through 1997 for all Federal-
     aid highway programs (as defined in section 101 of title 23, 
     United States Code), excluding--
       (i) apportionments authorized under section 104 of that 
     title for construction of the Interstate System;
       (ii) apportionments for the Interstate substitute program 
     under section 103(e)(4) of that title (as in effect on the 
     day before the date of enactment of this Act);
       (iii) apportionments for the Federal lands highways program 
     under section 204 of that title; and
       (iv) adjustments to sums apportioned under section 104 of 
     that title due to the hold harmless adjustment under section 
     1015(a) of the Intermodal Surface Transportation Efficiency 
     Act of 1991 (23 U.S.C. 104 note; 105 Stat. 1943);
       (D) the product obtained by multiplying--
       (i) the annual average of the total apportionments 
     determined under subparagraph (B); by
       (ii) the applicable percentage determined under paragraph 
     (2); and
       (E) the product obtained by multiplying--
       (i) the annual average of the total apportionments 
     determined under subparagraph (C); by
       (ii) the applicable percentage determined under paragraph 
     (2).
       (2) Applicable percentages.--
       (A) Fiscal year 1998.--For fiscal year 1998--
       (i) the applicable percentage referred to in paragraph 
     (1)(D)(ii) shall be 145 percent; and
       (ii) the applicable percentage referred to in paragraph 
     (1)(E)(ii) shall be 107 percent.
       (B) Fiscal years thereafter.--For each of fiscal years 1999 
     through 2003, the applicable percentage referred to in 
     paragraph (1)(D)(ii) or (1)(E)(ii), respectively, shall be 
     a percentage equal to the product obtained by 
     multiplying--
       (i) the percentage specified in clause (i) or (ii), 
     respectively, of subparagraph (A); by
       (ii) the percentage that--

       (I) the total contract authority made available under this 
     Act and title 23, United States Code, for Federal-aid highway 
     programs for the fiscal year; bears to
       (II) the total contract authority made available under this 
     Act and title 23, United States Code, for Federal-aid highway 
     programs for fiscal year 1998.

       (3) Maximum transition.--
       (A) In general.--For each of fiscal years 1998 through 
     2003, in the case of each State with respect to which the 
     total apportionments determined under paragraph (1)(A) is 
     greater than the product determined under paragraph (1)(D), 
     the Secretary shall reduce proportionately the apportionments 
     to the State under section 104 of title 23, United States 
     Code, for the National Highway System component of the 
     Interstate and National Highway System program, the surface 
     transportation program, and the congestion mitigation and air 
     quality improvement program so that the total of the 
     apportionments is equal to the product determined under 
     paragraph (1)(D).
       (B) Redistribution of funds.--
       (i) In general.--Subject to clause (ii), funds made 
     available under subparagraph (A) shall be redistributed 
     proportionately under section 104 of title 23, United States 
     Code, for the Interstate and National Highway System program, 
     the surface transportation program, and the congestion 
     mitigation and air quality improvement program, to States not 
     subject to a reduction under subparagraph (A).
       (ii) Limitation.--The ratio that--

       (I) the total apportionments to a State under section 104 
     of title 23, United States Code, for the Interstate and 
     National Highway System program, the surface transportation 
     program, metropolitan planning, and the congestion mitigation 
     and air quality improvement program, after the application of 
     clause (i); bears to
       (II) the annual average of the total apportionments 
     determined under paragraph (1)(B) with respect to the State;

     may not exceed, in the case of fiscal year 1998, 145 percent, 
     and, in the case of each of fiscal years 1999 through 2003, 
     145 percent as adjusted in the manner described in paragraph 
     (2)(B).
       (4) Minimum transition.--
       (A) In general.--For each of fiscal years 1998 through 
     2003, the Secretary shall apportion to each State such 
     additional amounts as are necessary to ensure that--
       (i) the total apportionments to the State under section 104 
     of title 23, United States Code, for the Interstate and 
     National Highway System program, the surface transportation 
     program, metropolitan planning, and the congestion mitigation 
     and air quality improvement program, after the application of 
     paragraph (3); is equal to
       (ii) the greater of--

       (I) the product determined with respect to the State under 
     paragraph (1)(E); or
       (II) the total apportionments to the State for fiscal year 
     1997 for all Federal-aid highway programs, excluding--

       (aa) apportionments for the Federal lands highways program 
     under section 204 of title 23, United States Code;
       (bb) adjustments to sums apportioned under section 104 of 
     that title due to the hold harmless adjustment under section 
     1015(a) of the Intermodal Surface Transportation Efficiency 
     Act of 1991 (23 U.S.C. 104 note; 105 Stat. 1943); and
       (cc) demonstration projects under the Intermodal 
     Surface Transportation Efficiency Act of 1991 (Public Law 
     102-240).
       (B) Obligation.--Amounts apportioned under subparagraph 
     (A)--
       (i) shall be considered to be sums made available for 
     expenditure on the surface transportation program, except 
     that--

       (I) the amounts shall not be subject to paragraphs (1) and 
     (2) of section 133(d) of title 23, United States Code; and
       (II) 50 percent of the amounts shall be subject to section 
     133(d)(3) of that title;

       (ii) shall be available for any purpose eligible for 
     funding under section 133 of that title; and
       (iii) shall remain available for obligation for a period of 
     3 years after the last day of the fiscal year for which the 
     amounts are apportioned.
       (C) Authorization of contract authority.--
       (i) In general.--There shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account) such sums as 
     are necessary to carry out this paragraph.
       (ii) Contract authority.--Funds authorized under this 
     subparagraph shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code.
       (d) Minimum Guarantee.--
       (1) In general.--Section 105 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 105. Minimum guarantee

       ``(a) Adjustment.--
       ``(1) In general.--In fiscal year 1998 and each fiscal year 
     thereafter on October 1, or as soon as practicable 
     thereafter, the Secretary shall allocate among the States 
     amounts sufficient to ensure that--
       ``(A) the ratio that--
       ``(i) each State's percentage of the total apportionments 
     for the fiscal year--

       ``(I) under section 104 for the Interstate and National 
     Highway System program, the surface transportation program, 
     metropolitan planning, and the congestion mitigation and air 
     quality improvement program; and
       ``(II) under this section and section 1102(c) of the 
     Intermodal Surface Transportation Efficiency Act of 1997 for 
     ISTEA transition; bears to

       ``(ii) each State's percentage 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 latest fiscal year for which data are available;
     is not less than 0.90; and
       ``(B) in the case of a State specified in paragraph (2), 
     the State's percentage of the total apportionments for the 
     fiscal year described in subclauses (I) and (II) of 
     subparagraph (A)(i) is--
       ``(i) not less than the percentage specified for the State 
     in paragraph (2); but
       ``(ii) not greater than the product determined for the 
     State under section 1102(c)(1)(D) of the Intermodal Surface 
     Transportation Efficiency Act of 1997 for the fiscal year.

[[Page S10665]]

       ``(2) State percentages.--The percentage referred to in 
     paragraph (1)(B) for a specified State shall be determined in 
     accordance with the following table:

``State                                                      Percentage
    Alaska....................................................1.24 ....

    Arkansas..................................................1.33 ....

    Delaware..................................................0.47 ....

    Hawaii....................................................0.55 ....

    Idaho.....................................................0.82 ....

    Montana...................................................1.06 ....

    Nevada....................................................0.73 ....

    New Hampshire.............................................0.52 ....

    New Jersey................................................2.41 ....

    New Mexico................................................1.05 ....

    North Dakota..............................................0.73 ....

    Rhode Island..............................................0.58 ....

    South Dakota..............................................0.78 ....

    Vermont...................................................0.47 ....

    Wyoming...................................................0.76.....

       ``(b) Treatment of Allocations.--
       ``(1) Obligation.--Amounts allocated under subsection (a)--
       ``(A) shall be available for obligation when allocated and 
     shall remain available for obligation for a period of 3 years 
     after the last day of the fiscal year for which the amounts 
     are allocated; and
       ``(B) shall be available for any purpose eligible for 
     funding under this title.
       ``(2) Set-aside.--Fifty percent of the amounts allocated 
     under subsection (a) shall be subject to section 133(d)(3).
       ``(c) Treatment of Withheld Apportionments.--For the 
     purpose of subsection (a), any funds that, but for section 
     158(b) or any other provision of law under which Federal-aid 
     highway funds are withheld from apportionment, would be 
     apportioned to a State for a fiscal year under a section 
     referred to in subsection (a) shall be treated as being 
     apportioned in that fiscal year.
       ``(d) Authorization of Contract Authority.--There shall be 
     available from the Highway Trust Fund (other than the Mass 
     Transit Account) such sums as are necessary to carry out this 
     section.''.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 105 and inserting the following:

``105. Minimum guarantee.''.
       (e) Audits of Highway Trust Fund.--Section 104 of title 23, 
     United States Code, is amended by striking subsection (i) and 
     inserting the following:
       ``(i) Audits of Highway Trust Fund.--From available 
     administrative funds deducted under subsection (a), the 
     Secretary may reimburse the Office of Inspector General of 
     the Department of Transportation for the conduct of annual 
     audits of financial statements in accordance with section 
     3521 of title 31.''.
       (f) Technical Amendments.--Section 104 of title 23, United 
     States Code, is amended--
       (1) in subsection (e)--
       (A) by inserting ``Notification to States.--'' after 
     ``(e)'';
       (B) in the first sentence--
       (i) by striking ``(other than under subsection (b)(5) of 
     this section)''; and
       (ii) by striking ``and research'';
       (C) by striking the second sentence; and
       (D) in the last sentence, by striking ``, except that'' and 
     all that follows through ``such funds''; and
       (2) in subsection (f)--
       (A) by striking ``(f)(1) On'' and inserting the following:
       ``(f) Metropolitan Planning.--
       ``(1) Set-aside.--On'';
       (B) by striking ``(2) These'' and inserting the following:
       ``(2) Apportionment to states of set-aside funds.--These'';
       (C) by striking ``(3) The'' and inserting the following:
       ``(3) Use of funds.--The''; and
       (D) by striking ``(4) The'' and inserting the following:
       ``(4) Distribution of funds within states.--The''.
       (g) Conforming Amendments.--
       (1) Section 146(a) of title 23, United States Code, is 
     amended in the first sentence by striking ``, 104(b)(2), and 
     104(b)(6)'' and inserting ``and 104(b)(2)''.
       (2)(A) Section 150 of title 23, United States Code, is 
     repealed.
       (B) The analysis for chapter 1 of title 23, United States 
     Code, is amended by striking the item relating to section 
     150.
       (3) Section 158 of title 23, United States Code, is 
     amended--
       (A) in subsection (a)--
       (i) by striking paragraph (1);
       (ii) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively;
       (iii) in paragraph (1) (as so redesignated)--

       (I) by striking ``After the first year'' and inserting ``In 
     general''; and
       (II) by striking ``, 104(b)(2), 104(b)(5), and 104(b)(6)'' 
     and inserting ``and 104(b)(2)''; and

       (iv) in paragraph (2) (as redesignated by clause (ii)), by 
     striking ``paragraphs (1) and (2) of this subsection'' and 
     inserting ``paragraph (1)''; and
       (B) by striking subsection (b) and inserting the following:
       ``(b) Effect of Withholding of Funds.--No funds withheld 
     under this section from apportionment to any State after 
     September 30, 1988, shall be available for apportionment to 
     that State.''.
       (4)(A) Section 157 of title 23, United States Code, is 
     repealed.
       (B) The analysis for chapter 1 of title 23, United States 
     Code, is amended by striking the item relating to section 
     157.
       (5)(A) Section 115(b)(1) of title 23, United States Code, 
     is amended by striking ``or 104(b)(5), as the case may be,''.
       (B) Section 137(f)(1) of title 23, United States Code, is 
     amended by striking ``section 104(b)(5)(B) of this title'' 
     and inserting ``section 104(b)(1)(A)''.
       (C) Section 141(c) of title 23, United States Code, is 
     amended by striking ``section 104(b)(5) of this title'' each 
     place it appears and inserting ``section 104(b)(1)(A)''.
       (D) Section 142(c) of title 23, United States Code, is 
     amended by striking ``(other than section 104(b)(5)(A))''.
       (E) Section 159 of title 23, United States Code, is 
     amended--
       (i) by striking ``(5) of'' each place it appears and 
     inserting ``(5) (as in effect on the day before the date of 
     enactment of the Intermodal Surface Transportation Efficiency 
     Act of 1997) of''; and
       (ii) in subsection (b)--
       (I) in paragraphs (1)(A)(i) and (3)(A), by striking 
     ``section 104(b)(5)(A)'' each place it appears and inserting 
     ``section 104(b)(5)(A) (as in effect on the day before the 
     date of enactment of the Intermodal Surface Transportation 
     Efficiency Act of 1997)'';
       (II) in paragraph (1)(A)(ii), by striking ``section 
     104(b)(5)(B)'' and inserting ``section 104(b)(5)(B) (as in 
     effect on the day before the date of enactment of the 
     Intermodal Surface Transportation Efficiency Act of 1997)'';
       (III) in paragraph (3)(B), by striking ``(5)(B)'' and 
     inserting ``(5)(B) (as in effect on the day before the date 
     of enactment of the Intermodal Surface Transportation 
     Efficiency Act of 1997)''; and
       (IV) in paragraphs (3) and (4), by striking ``section 
     104(b)(5)'' each place it appears and inserting ``section 
     104(b)(5) (as in effect on the day before the date of 
     enactment of the Intermodal Surface Transportation Efficiency 
     Act of 1997)''.
       (F) Section 161(a) of title 23, United States Code, is 
     amended by striking ``paragraphs (1), (3), and (5)(B) of 
     section 104(b)'' each place it appears and inserting 
     ``paragraphs (1) and (3) of section 104(b)''.
       (6)(A) Section 104(g) of title 23, United States Code, is 
     amended--
       (i) in the first sentence, by striking ``sections 130, 144, 
     and 152 of this title'' and inserting ``subsection (b)(1)(B) 
     and sections 130 and 152'';
       (ii) in the first and second sentences--
       (I) by striking ``section'' and inserting ``provision''; 
     and
       (II) by striking ``such sections'' and inserting ``those 
     provisions''; and
       (iii) in the third sentence--
       (I) by striking ``section 144'' and inserting ``subsection 
     (b)(1)(B)''; and
       (II) by striking ``subsection (b)(1)'' and inserting 
     ``subsection (b)(1)(C)''.
       (B) Section 115 of title 23, United States Code, is 
     amended--
       (i) in subsection (a)(1)(A)(i), by striking ``104(b)(2), 
     104(b)(3), 104(f), 144,'' and inserting ``104(b)(1)(B), 
     104(b)(2), 104(b)(3), 104(f),''; and
       (ii) in subsection (c), by striking ``144,,''.
       (C) Section 120(e) of title 23, United States Code, is 
     amended in the last sentence by striking ``and in section 144 
     of this title''.
       (D) Section 151(d) of title 23, United States Code, is 
     amended by striking ``section 104(a), section 307(a), and 
     section 144 of this title'' and inserting ``subsections (a) 
     and (b)(1)(B) of section 104 and section 307(a)''.
       (E) Section 204(c) of title 23, United States Code, is 
     amended in the first sentence by striking ``or section 144 of 
     this title''.
       (F) Section 303(g) of title 23, United States Code, is 
     amended by striking ``section 144 of this title'' and 
     inserting ``section 104(b)(1)(B)''.

     SEC. 1103. OBLIGATION CEILING.

       (a) General Limitations.--Subject to the other provisions 
     of this section and notwithstanding any other provision of 
     law, the total amount of all obligations for Federal-aid 
     highways and highway safety construction programs shall not 
     exceed--
       (1) $21,800,000,000 for fiscal year 1998;
       (2) $22,802,000,000 for fiscal year 1999;
       (3) $22,939,000,000 for fiscal year 2000;
       (4) $23,183,000,000 for fiscal year 2001;
       (5) $23,699,000,000 for fiscal year 2002; and
       (6) $24,548,000,000 for fiscal year 2003.
       (b) Exceptions.--
       (1) In general.--The limitations under subsection (a) shall 
     not apply to obligations of funds under--
       (A) section 105(a) of title 23, United States Code (but, 
     for each of fiscal years 1998 through 2003, only in an amount 
     equal to the amount included for section 157 of title 23, 
     United States Code, in the baseline determined by the 
     Congressional Budget Office for the fiscal year 1998 budget), 
     excluding amounts allocated under section 105(a)(1)(B) of 
     that title;
       (B) section 125 of that title;
       (C) section 157 of that title (as in effect on the day 
     before the date of enactment of this Act);
       (D) section 147 of the Surface Transportation Assistance 
     Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
       (E) section 9 of the Federal-Aid Highway Act of 1981 (95 
     Stat. 1701);
       (F) subsections (b) and (j) of section 131 of the Surface 
     Transportation Assistance Act of 1982 (96 Stat. 2119);
       (G) subsections (b) and (c) of section 149 of the Surface 
     Transportation and Uniform Relocation Assistance Act of 1987 
     (101 Stat. 198); and
       (H) sections 1103 through 1108 of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (105 Stat. 2027).
       (2) Effect of other law.--A provision of law establishing a 
     limitation on obligations

[[Page S10666]]

     for Federal-aid highways and highway safety construction 
     programs may not amend or limit the applicability of this 
     subsection, unless the provision specifically amends or 
     limits that applicability.
       (c) Applicability to Transportation Research Programs.--
     Obligation limitations for Federal-aid highways and highway 
     safety construction programs established by subsection (a) 
     shall apply to transportation research programs carried out 
     under chapter 5 of title 23, United States Code.
       (d) Obligation Authority.--Section 118 of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(g) Obligation Authority.--
       ``(1) Distribution.--For each fiscal year, the Secretary 
     shall--
       ``(A) distribute the total amount of obligation authority 
     for Federal-aid highways and highway safety construction 
     programs made available for the fiscal year by allocation in 
     the ratio that--
       ``(i) the total of the sums made available for Federal-aid 
     highways and highway safety construction programs that are 
     apportioned or allocated to each State for the fiscal year; 
     bears to
       ``(ii) the total of the sums made available for Federal-aid 
     highways and highway safety construction programs that are 
     apportioned or allocated to all States for the fiscal year;
       ``(B) provide all States with authority sufficient to 
     prevent lapses of sums authorized to be appropriated for 
     Federal-aid highways that have been apportioned to a State; 
     and
       ``(C) notwithstanding subparagraphs (A) and (B), not 
     distribute--
       ``(i) amounts deducted under section 104(a) for 
     administrative expenses;
       ``(ii) amounts set aside under section 104(k) for 
     Interstate 4R and bridge projects;
       ``(iii) amounts made available under sections 143, 164, 
     165, 204, 206, 207, and 322;
       ``(iv) amounts made available under section 111 of title 
     49;
       ``(v) amounts made available under section 201 of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. 
     App.);
       ``(vi) amounts made available under section 1012(b) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (23 
     U.S.C. 149 note; 105 Stat. 1938);
       ``(vii) amounts made available under sections 1503, 1603, 
     and 1604 of the Intermodal Surface Transportation Efficiency 
     Act of 1997;
       ``(viii) amounts made available under section 149(d) of the 
     Surface Transportation and Uniform Relocation Assistance Act 
     of 1987 (101 Stat. 201);
       ``(ix) amounts made available under section 105(a)(1)(A) to 
     the extent that the amounts are subject to any obligation 
     limitation under section 1103(a) of the Intermodal Surface 
     Transportation Efficiency Act of 1997;
       ``(x) amounts made available for implementation of programs 
     under chapter 5 of this title and sections 5222, 5232, and 
     5241 of title 49; and
       ``(xi) amounts made available under section 412 of the 
     Woodrow Wilson Memorial Bridge Authority Act of 1995.
       ``(2) Redistribution.--Notwithstanding paragraph (1), the 
     Secretary shall, after August 1 of each of fiscal years 1998 
     through 2003--
       ``(A) revise a distribution of the funds made available 
     under paragraph (1) for the fiscal year if a State will not 
     obligate the amount distributed during the fiscal year; and
       ``(B) redistribute sufficient amounts to those States able 
     to obligate amounts in addition to the amounts previously 
     distributed during the fiscal year, giving priority to those 
     States that have large unobligated balances of funds 
     apportioned under section 104 and under section 144 (as in 
     effect on the day before the date of enactment of this 
     subparagraph).''.
       (e) Applicability of Obligation Limitations.--An obligation 
     limitation established by a provision of any other Act shall 
     not apply to obligations under a program funded under this 
     Act or title 23, United States Code, unless--
       (1) the provision specifically amends or limits the 
     applicability of this subsection; or
       (2) an obligation limitation is specified in this Act with 
     respect to the program.

     SEC. 1104. OBLIGATION AUTHORITY UNDER SURFACE TRANSPORTATION 
                   PROGRAM.

       Section 133 of title 23, United States Code, is amended by 
     striking subsection (f) and inserting the following:
       ``(f) Obligation Authority.--
       ``(1) In general.--A State that is required to obligate in 
     an urbanized area with an urbanized area population of over 
     200,000 individuals under subsection (d) funds apportioned to 
     the State under section 104(b)(3) shall make available during 
     the 3-fiscal year period of 1998 through 2000, and the 3-
     fiscal year period of 2001 through 2003, an amount of 
     obligation authority distributed to the State for Federal-aid 
     highways and highway safety construction programs for use in 
     the area that is equal to the amount obtained by 
     multiplying--
       ``(A) the aggregate amount of funds that the State is 
     required to obligate in the area under subsection (d) during 
     each such period; by
       ``(B) the ratio that--
       ``(i) the aggregate amount of obligation authority 
     distributed to the State for Federal-aid highways and highway 
     safety construction programs during the period; bears to
       ``(ii) the total of the sums apportioned to the State for 
     Federal-aid highways and highway safety construction programs 
     (excluding sums not subject to an obligation limitation) 
     during the period.
       ``(2) Joint responsibility.--Each State, each affected 
     metropolitan planning organization, and the Secretary shall 
     jointly ensure compliance with paragraph (1).''.

     SEC. 1105. EMERGENCY RELIEF.

       (a) Federal Share.--Section 120(e) of title 23, United 
     States Code, is amended in the first sentence by striking 
     ``highway system'' and inserting ``highway''.
       (b) Eligibility and Funding.--Section 125 of title 23, 
     United States Code, is amended--
       (1) by striking subsection (a);
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (d), (e), and (f), respectively;
       (3) by inserting after the section heading the following:
       ``(a) General Eligibility.--Subject to this section and 
     section 120, an emergency fund is authorized for expenditure 
     by the Secretary for the repair or reconstruction of 
     highways, roads, and trails, in any part of the United 
     States, including Indian reservations, that the Secretary 
     finds have suffered serious damage as a result of--
       ``(1) natural disaster over a wide area, such as by a 
     flood, hurricane, tidal wave, earthquake, severe storm, or 
     landslide; or
       ``(2) catastrophic failure from any external cause.
       ``(b) Restriction on Eligibility.--In no event shall funds 
     be used pursuant to this section for the repair or 
     reconstruction of bridges that have been permanently closed 
     to all vehicular traffic by the State or responsible local 
     official because of imminent danger of collapse due to a 
     structural deficiency or physical deterioration.
       ``(c) Funding.--Subject to the following limitations, there 
     are hereby authorized to be appropriated from the Highway 
     Trust Fund (other than the Mass Transit Account) such sums as 
     may be necessary to establish the fund authorized by this 
     section and to replenish it on an annual basis:
       ``(1) Not more than $100,000,000 is authorized to be 
     obligated in any 1 fiscal year commencing after September 30, 
     1980, to carry out the provisions of this section, except 
     that, if in any fiscal year the total of all obligations 
     under this section is less than the amount authorized to 
     be obligated in such fiscal year, the unobligated balance 
     of such amount shall remain available until expended and 
     shall be in addition to amounts otherwise available to 
     carry out this section each year.
       ``(2) Pending such appropriation or replenishment, the 
     Secretary may obligate from any funds heretofore or hereafter 
     appropriated for obligation in accordance with this title, 
     including existing Federal-aid appropriations, such sums as 
     may be necessary for the immediate prosecution of the work 
     herein authorized, provided that such funds are reimbursed 
     from the appropriations authorized in paragraph (1) of this 
     subsection when such appropriations are made.'';
       (4) in subsection (d) (as so redesignated), by striking 
     ``subsection (c)'' both places it appears and inserting 
     ``subsection (e)''; and
       (5) in subsection (e) (as so redesignated), by striking 
     ``on any of the Federal-aid highway systems'' and inserting 
     ``Federal-aid highways''.
       (c) San Mateo County, California.--Notwithstanding any 
     other provision of law, a project to repair or reconstruct 
     any portion of a Federal-aid primary route in San Mateo 
     County, California, that--
       (1) was destroyed as a result of a combination of storms in 
     the winter of 1982-1983 and a mountain slide; and
       (2) until its destruction, served as the only reasonable 
     access route between 2 cities and as the designated emergency 
     evacuation route of 1 of the cities;

     shall be eligible for assistance under section 125(a) of 
     title 23, United States Code, if the project complies with 
     the local coastal plan.

     SEC. 1106. FEDERAL LANDS HIGHWAYS PROGRAM.

       (a) Federal Share Payable.--Section 120 of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(j) Use of Federal Land Management Agency Funds.--
     Notwithstanding any other provision of law, the funds 
     appropriated to any Federal land management agency may be 
     used to pay the non-Federal share of the cost of any Federal-
     aid highway project the Federal share of which is funded 
     under section 104.
       ``(k) Use of Federal Lands Highways Program Funds.--
     Notwithstanding any other provision of law, the funds made 
     available to carry out the Federal lands highways program 
     under section 204 may be used to pay the non-Federal share of 
     the cost of any project that is funded under section 104 and 
     that provides access to or within Federal or Indian lands.''.
       (b) Availability of Funds.--Section 203 of title 23, United 
     States Code, is amended by adding at the end the following: 
     ``Notwithstanding any other provision of law, the 
     authorization by the Secretary of engineering and related 
     work for a Federal lands highways program project, or the 
     approval by the Secretary of plans, specifications, and 
     estimates for construction of a Federal lands highways 
     program project, shall be deemed to constitute a contractual 
     obligation of the Federal Government to the pay the Federal 
     share of the cost of the project.''.
       (c) Planning and Agency Coordination.--Section 204 of title 
     23, United States Code, is amended--

[[Page S10667]]

       (1) by striking subsection (a) and inserting the following:
       ``(a) Establishment.--
       ``(1) In general.--Recognizing the need for all Federal 
     roads that are public roads to be treated under uniform 
     policies similar to the policies that apply to Federal-aid 
     highways, there is established a coordinated Federal lands 
     highways program that shall apply to public lands highways, 
     park roads and parkways, and Indian reservation roads and 
     bridges.
       ``(2) Transportation planning procedures.--In consultation 
     with the Secretary of each appropriate Federal land 
     management agency, the Secretary shall develop, by rule, 
     transportation planning procedures that are consistent with 
     the metropolitan and statewide planning processes required 
     under sections 134 and 135.
       ``(3) Approval of transportation improvement program.--The 
     transportation improvement program developed as a part of the 
     transportation planning process under this section shall be 
     approved by the Secretary.
       ``(4) Inclusion in other plans.--All regionally significant 
     Federal lands highways program projects--
       ``(A) shall be developed in cooperation with States and 
     metropolitan planning organizations; and
       ``(B) shall be included in appropriate Federal lands 
     highways program, State, and metropolitan plans and 
     transportation improvement programs.
       ``(5) Inclusion in state programs.--The approved Federal 
     lands highways program transportation improvement program 
     shall be included in appropriate State and metropolitan 
     planning organization plans and programs without further 
     action on the transportation improvement program.
       ``(6) Development of systems.--The Secretary and the 
     Secretary of each appropriate Federal land management agency 
     shall, to the extent appropriate, develop safety, bridge, 
     pavement, and congestion management systems for roads funded 
     under the Federal lands highways program.'';
       (2) in subsection (b), by striking the first 3 sentences 
     and inserting the following: ``Funds available for public 
     lands highways, park roads and parkways, and Indian 
     reservation roads shall be used by the Secretary and the 
     Secretary of the appropriate Federal land management agency 
     to pay for the cost of transportation planning, research, 
     engineering, and construction of the highways, roads, and 
     parkways, or of transit facilities within public lands, 
     national parks, and Indian reservations. In connection with 
     activities under the preceding sentence, the Secretary and 
     the Secretary of the appropriate Federal land management 
     agency may enter into construction contracts and other 
     appropriate contracts with a State or civil subdivision of a 
     State or Indian tribe.'';
       (3) in the first sentence of subsection (e), by striking 
     ``Secretary of the Interior'' and inserting ``Secretary of 
     the appropriate Federal land management agency'';
       (4) in subsection (h), by adding at the end the following:
       ``(8) A project to build a replacement of the federally 
     owned bridge over the Hoover Dam in the Lake Mead National 
     Recreation Area between Nevada and Arizona.'';
       (5) by striking subsection (i) and inserting the following:
       ``(i) Transfers of Costs to Secretaries of Federal Land 
     Management Agencies.--
       ``(1) Administrative costs.--The Secretary shall transfer 
     to the appropriate Federal land management agency from 
     amounts made available for public lands highways such amounts 
     as are necessary to pay necessary administrative costs of the 
     agency in connection with public lands highways.
       ``(2) Transportation planning costs.--The Secretary shall 
     transfer to the appropriate Federal land management agency 
     from amounts made available for public lands highways such 
     amounts as are necessary to pay the cost to the agency to 
     conduct necessary transportation planning for Federal lands, 
     if funding for the planning is not otherwise provided under 
     this section.''; and
       (6) in subsection (j), by striking the second sentence and 
     inserting the following: ``The Indian tribal government, in 
     cooperation with the Secretary of the Interior, and as 
     appropriate, with a State, local government, or metropolitan 
     planning organization, shall carry out a transportation 
     planning process in accordance with subsection (a).''.

     SEC. 1107. RECREATIONAL TRAILS PROGRAM.

       (a) In General.--Chapter 2 of title 23, United States Code, 
     is amended by inserting after section 205 the following:

     ``Sec. 206. Recreational trails program

       ``(a) Definitions.--
       ``(1) Motorized recreation.--The term `motorized 
     recreation' means off-road recreation using any motor-powered 
     vehicle, except for a motorized wheelchair.
       ``(2) Recreational trail; trail.--The term `recreational 
     trail' or `trail' means a thoroughfare or track across land 
     or snow, used for recreational purposes such as--
       ``(A) pedestrian activities, including wheelchair use;
       ``(B) skating or skateboarding;
       ``(C) equestrian activities, including carriage driving;
       ``(D) nonmotorized snow trail activities, including skiing;
       ``(E) bicycling or use of other human-powered vehicles;
       ``(F) aquatic or water activities; and
       ``(G) motorized vehicular activities, including all-terrain 
     vehicle riding, motorcycling, snowmobiling, use of off-road 
     light trucks, or use of other off-road motorized vehicles.
       ``(b) Program.--In accordance with this section, the 
     Secretary, in consultation with the Secretary of the Interior 
     and the Secretary of Agriculture, shall carry out a program 
     to provide and maintain recreational trails (referred to in 
     this section as the `program').
       ``(c) State Responsibilities.--To be eligible for 
     apportionments under this section--
       ``(1) a State may use apportionments received under this 
     section for construction of new trails crossing Federal lands 
     only if the construction is--
       ``(A) permissible under other law;
       ``(B) necessary and required by a statewide comprehensive 
     outdoor recreation plan required by the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.);
       ``(C) approved by the administering agency of the State 
     designated under paragraph (2); and
       ``(D) approved by each Federal agency charged with 
     management of the affected lands, which approval shall be 
     contingent on compliance by the Federal agency with all 
     applicable laws, including the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.), the Forest and 
     Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 
     1600 et seq.), and the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1701 et seq.);
       ``(2) the Governor of a State shall designate the State 
     agency or agencies that will be responsible for administering 
     apportionments received under this section; and
       ``(3) the State shall establish within the State a State 
     trail advisory committee that represents both motorized and 
     nonmotorized trail users.
       ``(d) Use of Apportioned Funds.--
       ``(1) In general.--Funds made available under this section 
     shall be obligated for trails and trail-related projects 
     that--
       ``(A) have been planned and developed under the laws, 
     policies, and administrative procedures of each State; and
       ``(B) are identified in, or further a specific goal of, a 
     trail plan or trail plan element included or referenced in a 
     metropolitan transportation plan required under section 134 
     or a statewide transportation plan required under section 
     135, consistent with the statewide comprehensive outdoor 
     recreation plan required by the Land and Water Conservation 
     Fund Act of 1965 (16 U.S.C. 460l-4 et seq.).
       ``(2) Permissible uses.--Permissible uses of funds made 
     available under this section include--
       ``(A) maintenance and restoration of existing trails;
       ``(B) development and rehabilitation of trailside and 
     trailhead facilities and trail linkages;
       ``(C) purchase and lease of trail construction and 
     maintenance equipment;
       ``(D) construction of new trails;
       ``(E) acquisition of easements and fee simple title to 
     property for trails or trail corridors;
       ``(F) payment of costs to the State incurred in 
     administering the program, but in an amount not to exceed 7 
     percent of the apportionment received by the State for a 
     fiscal year; and
       ``(G) operation of educational programs to promote safety 
     and environmental protection as these objectives relate to 
     the use of trails.
       ``(3) Use of apportionments.--
       ``(A) In general.--Except as provided in subparagraphs (B), 
     (C), and (D), of the apportionments received for a fiscal 
     year by a State under this section--
       ``(i) 40 percent shall be used for trail or trail-related 
     projects that facilitate diverse recreational trail use 
     within a trail corridor, trailside, or trailhead, regardless 
     of whether the project is for diverse motorized use, for 
     diverse nonmotorized use, or to accommodate both motorized 
     and nonmotorized recreational trail use;
       ``(ii) 30 percent shall be used for uses relating to 
     motorized recreation; and
       ``(iii) 30 percent shall be used for uses relating to 
     nonmotorized recreation.
       ``(B) Small state exclusion.--Any State with a total land 
     area of less than 3,500,000 acres, and in which nonhighway 
     recreational fuel use accounts for less than 1 percent of all 
     such fuel use in the United States, shall be exempted from 
     the requirements of subparagraph (A) upon application to the 
     Secretary by the State demonstrating that the State meets the 
     conditions of this subparagraph.
       ``(C) Waiver authority.--Upon the request of a State trail 
     advisory committee established under subsection (c)(3), the 
     Secretary may waive, in whole or in part, the requirements of 
     subparagraph (A) with respect to the State if the State 
     certifies to the Secretary that the State does not have 
     sufficient projects to meet the requirements of subparagraph 
     (A).
       ``(D) State administrative costs.--State administrative 
     costs eligible for funding under paragraph (2)(F) shall be 
     exempt from the requirements of subparagraph (A).
       ``(e) Environmental Benefit or Mitigation.--To the extent 
     practicable and consistent with the other requirements of 
     this section, a State should give consideration to project 
     proposals that provide for the redesign, reconstruction, 
     nonroutine maintenance, or relocation of trails to benefit 
     the

[[Page S10668]]

     natural environment or to mitigate and minimize the impact to 
     the natural environment.
       ``(f) Federal Share.--
       ``(1) In general.--Subject to the other provisions of this 
     subsection, the Federal share of the cost of a project under 
     this section shall not exceed 80 percent.
       ``(2) Federal agency project sponsor.--Notwithstanding any 
     other provision of law, a Federal agency that sponsors a 
     project under this section may contribute additional Federal 
     funds toward the cost of a project, except that--
       ``(A) the share attributable to the Secretary of 
     Transportation may not exceed 80 percent; and
       ``(B) the share attributable to the Secretary and the 
     Federal agency jointly may not exceed 95 percent.
       ``(3) Use of funds from federal programs to provide non-
     federal share.--Notwithstanding any other provision of law, 
     amounts made available by the Federal Government under any 
     Federal program 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;
     may be credited toward the non-Federal share of the cost of 
     the project.
       ``(4) Programmatic non-federal share.--A State may allow 
     adjustments to the non-Federal share of an individual project 
     under this section if the Federal share of the cost of all 
     projects carried out by the State under the program 
     (excluding projects funded under paragraph (2) or (3)) using 
     funds apportioned to the State for a fiscal year does not 
     exceed 80 percent.
       ``(5) State administrative costs.--The Federal share of the 
     administrative costs of a State under this subsection shall 
     be determined in accordance with section 120(b).
       ``(g) Uses Not Permitted.--A State may not obligate funds 
     apportioned under this section for--
       ``(1) condemnation of any kind of interest in property;
       ``(2) construction of any recreational trail on National 
     Forest System land for any motorized use unless--
       ``(A) the land has been apportioned for uses other than 
     wilderness by an approved forest land and resource management 
     plan or has been released to uses other than wilderness by an 
     Act of Congress; and
       ``(B) the construction is otherwise consistent with the 
     management direction in the approved forest land and resource 
     management plan;
       ``(3) construction of any recreational trail on Bureau of 
     Land Management land for any motorized use unless the land--
       ``(A) has been apportioned for uses other than wilderness 
     by an approved Bureau of Land Management resource management 
     plan or has been released to uses other than wilderness by an 
     Act of Congress; and
       ``(B) the construction is otherwise consistent with the 
     management direction in the approved management plan; or
       ``(4) upgrading, expanding, or otherwise facilitating 
     motorized use or access to trails predominantly used by 
     nonmotorized trail users and on which, as of May 1, 1991, 
     motorized use is prohibited or has not occurred.
       ``(h) Project Administration.--
       ``(1) Credit for donations of funds, materials, services, 
     or new right-of-way.--
       ``(A) In general.--Nothing in this title or other law shall 
     prevent a project sponsor from offering to donate funds, 
     materials, services, or a new right-of-way for the purposes 
     of a project eligible for assistance under this section. Any 
     funds, or the fair market value of any materials, services, 
     or new right-of-way, may be donated by any project sponsor 
     and shall be credited to the non-Federal share in accordance 
     with subsection (f).
       ``(B) Federal project sponsors.--Any funds or the fair 
     market value of any materials or services may be provided by 
     a Federal project sponsor and shall be credited to the 
     Federal agency's share in accordance with subsection (f).
       ``(2) Recreational purpose.--A project funded under this 
     section is intended to enhance recreational opportunity and 
     is not subject to section 138 of this title or section 303 of 
     title 49.
       ``(3) Continuing recreational use.--At the option of each 
     State, funds made available under this section may be treated 
     as Land and Water Conservation Fund apportionments for the 
     purposes of section 6(f)(3) of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l-8(f)(3)).
       ``(4) Cooperation by private persons.--
       ``(A) Written assurances.--As a condition of making 
     available apportionments for work on recreational trails that 
     would affect privately owned land, a State shall obtain 
     written assurances that the owner of the land will cooperate 
     with the State and participate as necessary in the activities 
     to be conducted.
       ``(B) Public access.--Any use of the apportionments to a 
     State under this section on privately owned land must be 
     accompanied by an easement or other legally binding agreement 
     that ensures public access to the recreational trail 
     improvements funded by the apportionments.
       ``(i) Apportionment.--
       ``(1) Definition of eligible state.--In this subsection, 
     the term `eligible State' means a State that meets the 
     requirements of subsection (c).
       ``(2) Apportionment.--Subject to subsection (j), for each 
     fiscal year, the Secretary shall apportion--
       ``(A) 50 percent of the amounts made available to carry out 
     this section equally among eligible States; and
       ``(B) 50 percent of the amounts made available to carry out 
     this section among eligible States in proportion to the 
     quantity of nonhighway recreational fuel used in each 
     eligible State during the preceding year.
       ``(j) Administrative Costs.--
       ``(1) In general.--Whenever an apportionment is made under 
     subsection (i) of the amounts made available to carry out 
     this section, the Secretary shall first deduct an amount, not 
     to exceed 1 percent of the authorized amounts, to pay the 
     costs to the Secretary for administration of, and research 
     authorized under, the program.
       ``(2) Use of contracts.--To carry out research funded under 
     paragraph (1), the Secretary may--
       ``(A) enter into contracts with for-profit organizations; 
     and
       ``(B) enter into contracts, partnerships, or cooperative 
     agreements with other government agencies, institutions of 
     higher learning, or nonprofit organizations.
       ``(k) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $17,000,000 for fiscal year 1998, 
     $20,000,000 for fiscal year 1999, $22,000,000 for fiscal year 
     2000, $23,000,000 for fiscal year 2001, $24,000,000 for 
     fiscal year 2002, and $25,000,000 for fiscal year 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that the Federal share of the cost of a project under 
     this section shall be determined in accordance with this 
     section.''.
       (b) Conforming Amendments.--
       (1) The Intermodal Surface Transportation Efficiency Act of 
     1991 is amended by striking part B of title I (16 U.S.C. 1261 
     et seq.).
       (2) The analysis for chapter 2 of title 23, United States 
     Code, is amended by striking the item relating to section 206 
     and inserting the following:

``206. Recreational trails program.''.

     SEC. 1108. VALUE PRICING PILOT PROGRAM.

       (a) In General.--Section 1012(b) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (23 U.S.C. 149 note; 
     105 Stat. 1938) is amended--
       (1) in the subsection heading, by striking ``Congestion'' 
     and inserting ``Value''; and
       (2) in paragraph (1), by striking ``congestion'' each place 
     it appears and inserting ``value''.
       (b) Increased Number of Projects.--Section 1012(b)(1) of 
     the Intermodal Surface Transportation Efficiency Act of 1991 
     (23 U.S.C. 149 note; 105 Stat. 1938) is amended in the second 
     sentence by striking ``5'' and inserting ``15''.
       (c) Eligibility of Preimplementation Costs.-- Section 
     1012(b)(2) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (23 U.S.C. 149 note; 105 Stat. 1938) 
     is amended in the second sentence--
       (1) by inserting after ``Secretary shall fund'' the 
     following: ``all preimplementation costs and project design, 
     and''; and
       (2) by inserting after ``Secretary may not fund'' the 
     following: ``the implementation costs of''.
       (d) Tolling.--Section 1012(b)(4) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (23 U.S.C. 149 note; 
     105 Stat. 1938) is amended by striking ``a pilot program 
     under this section, but not on more than 3 of such programs'' 
     and inserting ``any value pricing pilot program under this 
     subsection''.
       (e) HOV Passenger Requirements.--Section 1012(b) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (23 
     U.S.C. 149 note; 105 Stat. 1938) is amended by striking 
     paragraph (6) and inserting the following:
       ``(6) HOV passenger requirements.--Notwithstanding section 
     146(c) of title 23, United States Code, a State may permit 
     vehicles with fewer than 2 occupants to operate in high 
     occupancy vehicle lanes if the vehicles are part of a value 
     pricing pilot program under this subsection.''.
       (f) Funding.--Section 1012(b) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (23 U.S.C. 149 note; 
     105 Stat. 1938) is amended by adding at the end the 
     following:
       ``(7) Authorization of contract authority.--
       ``(A) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this subsection $8,000,000 for each of fiscal years 
     1998 through 2003.
       ``(B) Availability.--
       ``(i) In general.--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 are 
     authorized.
       ``(ii) Use of unallocated funds.--If the total amount of 
     funds made available from the Highway Trust Fund under this 
     subsection but not allocated exceeds $8,000,000 as of 
     September 30 of any year, the excess amount--

       ``(I) shall be apportioned in the following fiscal year by 
     the Secretary to all States in accordance with section 
     104(b)(3) of title 23, United States Code;

[[Page S10669]]

       ``(II) shall be considered to be a sum made available for 
     expenditure on the surface transportation program, except 
     that the amount shall not be subject to section 133(d) of 
     that title; and
       ``(III) shall be available for any purpose eligible for 
     funding under section 133 of that title.

       ``(C) Contract authority.--Funds authorized under this 
     paragraph 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 any project under this subsection and the 
     availability of funds authorized by this paragraph shall 
     be determined in accordance with this subsection.''.
       (g) Conforming Amendments.--Section 1012(b) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (23 
     U.S.C. 149 note; 105 Stat. 1938) is amended--
       (1) in paragraph (1), by striking ``projects'' each place 
     it appears and inserting ``programs''; and
       (2) in paragraph (5)--
       (A) by striking ``projects'' and inserting ``programs''; 
     and
       (B) by striking ``traffic, volume'' and inserting ``traffic 
     volume''.

     SEC. 1109. HIGHWAY USE TAX EVASION PROJECTS.

       (a) In General.--Section 143 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 143. Highway use tax evasion projects

       ``(a) Definition of State.--In this section, the term 
     `State' means the 50 States and the District of Columbia.
       ``(b) Projects.--
       ``(1) In general.--The Secretary shall use funds made 
     available under paragraph (7) to carry out highway use tax 
     evasion projects in accordance with this subsection.
       ``(2) Allocation of funds.--The funds may be allocated to 
     the Internal Revenue Service and the States at the discretion 
     of the Secretary.
       ``(3) Conditions on funds allocated to internal revenue 
     service.--The Secretary shall not impose any condition on the 
     use of funds allocated to the Internal Revenue Service under 
     this subsection.
       ``(4) Limitation on use of funds.--Funds made available 
     under paragraph (7) shall be used only--
       ``(A) to expand efforts to enhance motor fuel tax 
     enforcement;
       ``(B) to fund additional Internal Revenue Service staff, 
     but only to carry out functions described in this paragraph;
       ``(C) to supplement motor fuel tax examinations and 
     criminal investigations;
       ``(D) to develop automated data processing tools to monitor 
     motor fuel production and sales;
       ``(E) to evaluate and implement registration and reporting 
     requirements for motor fuel taxpayers;
       ``(F) to reimburse State expenses that supplement existing 
     fuel tax compliance efforts; and
       ``(G) to analyze and implement programs to reduce tax 
     evasion associated with other highway use taxes.
       ``(5) Maintenance of effort.--The Secretary may not make an 
     allocation to a State under this subsection for a fiscal year 
     unless the State certifies that the aggregate expenditure of 
     funds of the State, exclusive of Federal funds, for motor 
     fuel tax enforcement activities will be maintained at a level 
     that does not fall below the average level of such 
     expenditure for the preceding 2 fiscal years of the State.
       ``(6) Federal share.--The Federal share of the cost of a 
     project carried out under this subsection shall be 100 
     percent.
       ``(7) Authorization of contract authority.--
       ``(A) In general.--There shall be available to the 
     Secretary from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out this subsection $5,000,000 for 
     each of fiscal years 1998 through 2003.
       ``(B) Availability of funds.--Funds authorized under this 
     paragraph shall remain available for obligation for a period 
     of 1 year after the last day of the fiscal year for which the 
     funds are authorized.
       ``(c) Excise Fuel Reporting System.--
       ``(1) In general.--Not later than April 1, 1998, the 
     Secretary shall enter into a memorandum of understanding with 
     the Commissioner of the Internal Revenue Service for the 
     purposes of the development and maintenance by the Internal 
     Revenue Service of an excise fuel reporting system (referred 
     to in this subsection as the `system').
       ``(2) Elements of memorandum of understanding.--The 
     memorandum of understanding shall provide that--
       ``(A) the Internal Revenue Service shall develop and 
     maintain the system through contracts;
       ``(B) the system shall be under the control of the Internal 
     Revenue Service; and
       ``(C) the system shall be made available for use by 
     appropriate State and Federal revenue, tax, or law 
     enforcement authorities, subject to section 6103 of the 
     Internal Revenue Code of 1986.
       ``(3) Authorization of appropriations from highway trust 
     fund.--There are authorized to be appropriated to the 
     Secretary from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out this subsection--
       ``(A) $8,000,000 for development of the system; and
       ``(B) $2,000,000 for each of fiscal years 1998 through 2003 
     for operation and maintenance of the system.''.
       (b) Conforming Amendments.--
       (1) The analysis for chapter 1 of title 23, United States 
     Code, is amended by striking the item relating to section 143 
     and inserting the following:

``143. Highway use tax evasion projects.''.

       (2) Section 1040 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1992) 
     is repealed.
       (3) Section 8002 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 2203) 
     is amended--
       (A) in the first sentence of subsection (g), by striking 
     ``section 1040 of this Act'' and inserting ``section 143 of 
     title 23, United States Code,''; and
       (B) by striking subsection (h).

     SEC. 1110. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

       Section 217 of title 23, United States Code, is amended--
       (1) in subsection (b)--
       (A) by inserting ``pedestrian walkways and'' after 
     ``construction of''; and
       (B) by striking ``(other than the Interstate System)'';
       (2) in subsection (e), by striking ``, other than a highway 
     access to which is fully controlled,'';
       (3) by striking subsection (g) and inserting the following:
       ``(g) Planning and Design.--
       ``(1) In general.--Bicyclists and pedestrians shall be 
     given consideration in the comprehensive transportation plans 
     developed by each metropolitan planning organization and 
     State in accordance with sections 134 and 135, respectively.
       ``(2) Construction.--Bicycle transportation facilities and 
     pedestrian walkways shall be considered, where appropriate, 
     in conjunction with all new construction and reconstruction 
     of transportation facilities, except where bicycle and 
     pedestrian use are not permitted.
       ``(3) Safety and contiguous routes.--Transportation plans 
     and projects shall provide consideration for safety and 
     contiguous routes for bicyclists and pedestrians.'';
       (4) in subsection (h)--
       (A) by striking ``No motorized vehicles shall'' and 
     inserting ``Motorized vehicles may not''; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) wheelchairs that are powered; and''; and
       (5) by striking subsection (j) and inserting the following:
       ``(j) Definitions.--In this section:
       ``(1) Bicycle transportation facility.--The term `bicycle 
     transportation facility' means a new or improved lane, path, 
     or shoulder for use by bicyclists or a traffic control 
     device, shelter, or parking facility for bicycles.
       ``(2) Pedestrian.--The term `pedestrian' means any person 
     traveling by foot or any mobility impaired person using a 
     wheelchair.
       ``(3) Wheelchair.--The term `wheelchair' means a mobility 
     aid, usable indoors, and designed for and used by individuals 
     with mobility impairments, whether operated manually or 
     powered.''.

     SEC. 1111. 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 and II of this 
     Act shall be expended with small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals.
       (b) Definitions.--For purposes of this section, the 
     following definitions apply:
       (1) Small business concern.--The term ``small business 
     concern'' has the meaning such term has under section 3 of 
     the Small Business Act (15 U.S.C. 632); except that such term 
     shall not include any concern or group of concerns controlled 
     by the same socially and economically disadvantaged 
     individual or individuals which has average annual gross 
     receipts over the preceding 3 fiscal years in excess of 
     $16,600,000, as adjusted by the Secretary for inflation.
       (2) Socially and economically disadvantaged individuals.--
     The term ``socially and economically disadvantaged 
     individuals'' has the meaning such term has under section 
     8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
     relevant subcontracting regulations promulgated pursuant 
     thereto; except that women shall be presumed to be socially 
     and economically disadvantaged individuals for 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 but not 
     be limited to 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.

[[Page S10670]]

     SEC. 1112. FEDERAL SHARE PAYABLE.

       Section 120 of title 23, United States Code (as amended by 
     section 1106(a)), is amended--
       (1) in each of subsections (a) and (b), by adding at the 
     end the following: ``In the case of any project subject to 
     this subsection, a State may determine a lower Federal share 
     than the Federal share determined under the preceding 
     sentences of this subsection.''; and
       (2) by adding at the end the following:
       ``(l) Credit for Non-Federal Share.--
       ``(1) Eligibility.--A State may use as a credit toward the 
     non-Federal share requirement for any program under the 
     Intermodal Surface Transportation Efficiency Act of 1991 
     (Public Law 102-240) or this title, other than the emergency 
     relief program authorized by section 125, toll revenues that 
     are generated and used by public, quasi-public, and private 
     agencies to build, improve, or maintain, without the use of 
     Federal funds, highways, bridges, or tunnels that serve the 
     public purpose of interstate commerce.
       ``(2) Maintenance of effort.--
       ``(A) In general.--The credit toward any non-Federal share 
     under paragraph (1) shall not reduce nor replace State funds 
     required to match Federal funds for any program under this 
     title.
       ``(B) Conditions on receipt of credit.--
       ``(i) Agreement with the secretary.--To receive a credit 
     under paragraph (1) for a fiscal year, a State shall enter 
     into such agreements as the Secretary may require to ensure 
     that the State will maintain its non-Federal transportation 
     capital expenditures at or above the average level of such 
     expenditures for the preceding 3 fiscal years.
       ``(ii) Exception.--Notwithstanding clause (i), a State may 
     receive a credit under paragraph (1) for a fiscal year if, 
     for any 1 of the preceding 3 fiscal years, the non-Federal 
     transportation capital expenditures of the State were at a 
     level that was greater than 30 percent of the average level 
     of such expenditures for the other 2 of the preceding 3 
     fiscal years.
       ``(3) Treatment.--
       ``(A) In general.--Use of the credit toward a non-Federal 
     share under paragraph (1) shall not expose the agencies from 
     which the credit is received to additional liability, 
     additional regulation, or additional administrative 
     oversight.
       ``(B) Chartered multistate agencies.--When credit is 
     applied from a chartered multistate agency under paragraph 
     (1), the credit shall be applied equally to all charter 
     States.
       ``(C) No additional standards.--A public, quasi-public, or 
     private agency from which the credit for which the non-
     Federal share is calculated under paragraph (1) shall not be 
     subject to any additional Federal design standards or laws 
     (including regulations) as a result of providing the credit 
     beyond the standards and laws to which the agency is already 
     subject.''.

     SEC. 1113. STUDIES AND REPORTS.

       (a) Highway Economic Requirement System.--
       (1) Methodology.--
       (A) Evaluation.--The Comptroller General of the United 
     States shall conduct an evaluation of the methodology used by 
     the Department of Transportation to determine highway needs 
     using the highway economic requirement system (referred to in 
     this subsection as the ``model'').
       (B) Required element.--The evaluation shall include an 
     assessment of the extent to which the model estimates an 
     optimal level of highway infrastructure investment, including 
     an assessment as to when the model may be overestimating or 
     underestimating investment requirements.
       (C) Report to congress.--Not later than 2 years after the 
     date of enactment of this Act, the Comptroller General shall 
     submit a report to Congress on the results of the evaluation.
       (2) State investment plans.--
       (A) Study.--In consultation with State transportation 
     departments and other appropriate State and local officials, 
     the Comptroller General of the United States shall conduct a 
     study on the extent to which the highway economic requirement 
     system of the Federal Highway Administration can be used to 
     provide States with useful information for developing State 
     transportation investment plans and State infrastructure 
     investment projections.
       (B) Required elements.--The study shall--
       (i) identify any additional data that may need to be 
     collected beyond the data submitted, prior to the date of 
     enactment of this Act, to the Federal Highway Administration 
     through the highway performance monitoring system; and
       (ii) identify what additional work, if any, would be 
     required of the Federal Highway Administration and the States 
     to make the model useful at the State level.
       (C) Report to congress.--Not later than 3 years after the 
     date of enactment of this Act, the Comptroller General shall 
     submit a report to Congress on the results of the study.
       (b) International Roughness Index.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study on the international roughness index 
     that is used as an indicator of pavement quality on the 
     Federal-aid highway system.
       (2) Required elements.--The study shall specify the extent 
     of usage of the index and the extent to which the 
     international roughness index measurement is reliable across 
     different manufacturers and types of pavement.
       (3) Report to congress.--Not later than 2 years after the 
     date of enactment of this Act, the Comptroller General shall 
     submit a report to Congress on the results of the study.
       (c) Reporting of Rates of Obligation.--Section 104 of title 
     23, United States Code, is amended--
       (1) by redesignating subsection (j) as subsection (m); and
       (2) by inserting after subsection (i) the following:
       ``(j) Reporting of Rates of Obligation.--On an annual 
     basis, the Secretary shall publish or otherwise report rates 
     of obligation of funds apportioned or set aside under this 
     section and sections 103 and 133 according to--
       ``(1) program;
       ``(2) funding category or subcategory;
       ``(3) type of improvement;
       ``(4) State; and
       ``(5) sub-State geographic area, including urbanized and 
     rural areas, on the basis of the population of each such 
     area.''.

     SEC. 1114. DEFINITIONS.

       (a) Federal-Aid Highway Funds and Program.--
       (1) In general.--Section 101(a) of title 23, United States 
     Code, is amended by inserting before the undesignated 
     paragraph defining ``Federal-aid highways'' the following:
       ``The term `Federal-aid highway funds' means funds made 
     available to carry out the Federal-aid highway program.
       ``The term `Federal-aid highway program' means all programs 
     authorized under chapters 1, 3, and 5.''.
       (2) Conforming amendments.--
       (A) Section 101(d) of title 23, United States Code, is 
     amended by striking ``the construction of Federal-aid 
     highways or highway planning, research, or development'' and 
     inserting ``the Federal-aid highway program''.
       (B) Section 104(m)(1) of title 23, United States Code (as 
     redesignated by section 1113(c)(1)), is amended by striking 
     ``Federal-aid highways and the highway safety construction 
     programs'' and inserting ``the Federal-aid highway program''.
       (C) Section 107(b) of title 23, United States Code, is 
     amended in the second sentence by striking ``Federal-aid 
     highways'' and inserting ``the Federal-aid highway program''.
       (b) Alphabetization of Definitions.--Section 101(a) of 
     title 23, United States Code, is amended by reordering the 
     undesignated paragraphs so that they are in alphabetical 
     order.

     SEC. 1115. COOPERATIVE FEDERAL LANDS TRANSPORTATION PROGRAM.

       (a) In General.--Chapter 2 of title 23, United States Code 
     (as amended by section 1107(a)), is amended by inserting 
     after section 206 the following:

     ``Sec. 207. Cooperative Federal Lands Transportation Program

       ``(a) In General.--There is established the Cooperative 
     Federal Lands Transportation Program (referred to in this 
     section as the `program'). Funds available for the program 
     may be used for projects, or portions of projects, on 
     highways that are owned or maintained by States or political 
     subdivisions of States and that cross, are adjacent to, or 
     lead to federally owned land or Indian reservations 
     (including Army Corps of Engineers reservoirs), as determined 
     by the State. Such projects shall be proposed by a State and 
     selected by the Secretary. A project proposed by a State 
     under this section shall be on a highway or bridge owned or 
     maintained by the State, or 1 or more political subdivisions 
     of the State, and may be a highway or bridge construction or 
     maintenance project eligible under this title or any project 
     of a type described in section 204(h).
       ``(b) Distribution of Funds for Projects.--
       ``(1) In general.--
       ``(A) In general.--The Secretary--
       ``(i) after consultation with the Administrator of General 
     Services, the Secretary of the Interior, and other agencies 
     as appropriate (including the Army Corps of Engineers), shall 
     determine the percentage of the total land in each State that 
     is owned by the Federal Government or that is held by the 
     Federal Government in trust;
       ``(ii) shall determine the sum of the percentages 
     determined under clause (i) for States with respect to which 
     the percentage is 4.5 or greater; and
       ``(iii) shall determine for each State included in the 
     determination under clause (ii) the percentage obtained by 
     dividing--

       ``(I) the percentage for the State determined under clause 
     (i); by
       ``(II) the sum determined under clause (ii).

       ``(B) Adjustment.--The Secretary shall--
       ``(i) reduce any percentage determined under subparagraph 
     (A)(iii) that is greater than 7.5 percent to 7.5 percent; and
       ``(ii) redistribute the percentage points equal to any 
     reduction under clause (i) among other States included in the 
     determination under subparagraph (A)(ii) in proportion to the 
     percentages for those States determined under subparagraph 
     (A)(iii).
       ``(2) Availability to states.--Except as provided in 
     paragraph (3), for each fiscal year, the Secretary shall make 
     funds available to carry out eligible projects in a State in 
     an amount equal to the amount obtained by multiplying--
       ``(A) the percentage for the State, if any, determined 
     under paragraph (1); by
       ``(B) the funds made available for the program for the 
     fiscal year.
       ``(3) Selection of projects.--The Secretary may establish 
     deadlines for States to submit proposed projects for funding 
     under this section, except that in the case of fiscal

[[Page S10671]]

     year 1998 the deadline may not be earlier than January 1, 
     1998. For each fiscal year, if a State does not have pending, 
     by that deadline, applications for projects with an estimated 
     cost equal to at least 3 times the amount for the State 
     determined under paragraph (2), the Secretary may distribute, 
     to 1 or more other States, at the Secretary's discretion, \1/
     3\ of the amount by which the estimated cost of the State's 
     applications is less than 3 times the amount for the State 
     determined under paragraph (2).
       ``(c) Transfers.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a State and the Secretary may agree to transfer amounts 
     made available to a State under this section to the 
     allocations of the State under section 202 for use in 
     carrying out projects on any Federal lands highway that is 
     located in the State.
       ``(2) Special rule.--This paragraph applies to a State that 
     contains a national park that was visited by more than 
     2,500,000 people in 1996 and comprises more than 3,000 square 
     miles of land area, including surface water, that is located 
     in the State. For such a State, 50 percent of the amount that 
     would otherwise be made available to the State for each 
     fiscal year under the program shall be made available only 
     for eligible highway uses in the national park and within the 
     borders of the State. For the purpose of making allocations 
     under section 202(c), the Secretary may not take into account 
     the past or future availability, for use on park roads and 
     parkways in a national park, of funds made available for use 
     in a national park by this paragraph.
       ``(d) Rights-of-Way Across Federal Land.--Nothing in this 
     section affects any claim for a right-of-way across Federal 
     land.
       ``(e) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $74,000,000 for each of fiscal years 
     1998 through 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1.''.
       (b) Conforming Amendment.--The analysis for chapter 2 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 207 and inserting the following:

``207. Cooperative Federal Lands Transportation Program.''.

     SEC. 1116. TRADE CORRIDOR AND BORDER CROSSING PLANNING AND 
                   BORDER INFRASTRUCTURE.

       (a) Definitions.--In this section:
       (1) Border region.--The term ``border region'' means--
       (A) the region located within 60 miles of the United States 
     border with Mexico; and
       (B) the region located within 60 miles of the United States 
     border with Canada.
       (2) Border state.--The term ``border State'' means a State 
     of the United States that--
       (A) is located along the border with Mexico; or
       (B) is located along the border with Canada.
       (3) Border station.--The term ``border station'' means a 
     controlled port of entry into the United States located in 
     the United States at the border with Mexico or Canada, 
     consisting of land occupied by the station and the buildings, 
     roadways, and parking lots on the land.
       (4) Federal inspection agency.--The term ``Federal 
     inspection agency'' means a Federal agency responsible for 
     the enforcement of immigration laws (including regulations), 
     customs laws (including regulations), and agriculture import 
     restrictions, including the United States Customs Service, 
     the Immigration and Naturalization Service, the Animal and 
     Plant Health Inspection Service, the Food and Drug 
     Administration, the United States Fish and Wildlife Service, 
     and the Department of State.
       (5) Gateway.--The term ``gateway'' means a grouping of 
     border stations defined by proximity and similarity of trade.
       (6) Non-federal governmental jurisdiction.--The term ``non-
     Federal governmental jurisdiction'' means a regional, State, 
     or local authority involved in the planning, development, 
     provision, or funding of transportation infrastructure needs.
       (b) Border Crossing Planning Incentive Grants.--
       (1) In general.--The Secretary shall make incentive grants 
     to States and to metropolitan planning organizations 
     designated under section 134 of title 23, United States Code.
       (2) Use of grants.--The grants shall be used to encourage 
     joint transportation planning activities and to improve 
     people and vehicle movement into and through international 
     gateways as a supplement to statewide and metropolitan 
     transportation planning funding made available under other 
     provisions of this Act and under title 23, United States 
     Code.
       (3) Condition of grants.--As a condition of receiving a 
     grant under paragraph (1), a State transportation department 
     or a metropolitan planning organization shall certify to the 
     Secretary that it commits to be engaged in joint planning 
     with its counterpart agency in Mexico or Canada.
       (4) Limitation on amount.--Each State transportation 
     department or metropolitan planning organization may receive 
     not more than $100,000 under this subsection for any fiscal 
     year.
       (5) Authorization of contract authority.--
       (A) In general.--There shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this subsection $1,400,000 for each of fiscal years 1998 
     through 2003.
       (B) Contract authority.--Funds authorized under this 
     subsection 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 under this subsection shall be 
     determined in accordance with subsection (f).
       (c) Trade Corridor Planning Incentive Grants.--
       (1) Grants.--
       (A) In general.--The Secretary shall make grants to States 
     to encourage, within the framework of the statewide 
     transportation planning process of the State under section 
     135 of title 23, United States Code, cooperative multistate 
     corridor analysis of, and planning for, the safe and 
     efficient movement of goods along and within international or 
     interstate trade corridors of national importance.
       (B) Identification of corridors.--Each corridor referred to 
     in subparagraph (A) shall be cooperatively identified by the 
     States along the corridor.
       (2) Corridor plans.--
       (A) In general.--As a condition of receiving a grant under 
     paragraph (1), a State shall enter into an agreement with the 
     Secretary that specifies that, in cooperation with the other 
     States along the corridor, the State will submit a plan for 
     corridor improvements to the Secretary not later than 2 years 
     after receipt of the grant.
       (B) Coordination of planning.--Planning with respect to a 
     corridor under this subsection shall be coordinated with 
     transportation planning being carried out by the States and 
     metropolitan planning organizations along the corridor and, 
     to the extent appropriate, with transportation planning being 
     carried out by Federal land management agencies, by tribal 
     governments, or by government agencies in Mexico or Canada.
       (3) Multistate agreements for trade corridor planning.--The 
     consent of Congress is granted to any 2 or more States--
       (A) to enter into multistate agreements, not in conflict 
     with any law of the United States, for cooperative efforts 
     and mutual assistance in support of interstate trade corridor 
     planning activities; and
       (B) to establish such agencies, joint or otherwise, as the 
     States may determine desirable to make the agreements 
     effective.
       (4) Authorization of contract authority.--
       (A) In general.--There shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this subsection $3,000,000 for each of fiscal years 1998 
     through 2003.
       (B) Contract authority.--Funds authorized under this 
     subsection 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 under this subsection shall be 
     determined in accordance with subsection (f).
       (d) Federal Assistance for Trade Corridors and Border 
     Infrastructure Safety and Congestion Relief.--
       (1) Applications for grants.--The Secretary shall make 
     grants to States or metropolitan planning organizations that 
     submit an application that--
       (A) demonstrates need for assistance in carrying out 
     transportation projects that are necessary to relieve traffic 
     congestion or improve enforcement of motor carrier safety 
     laws; and
       (B) includes strategies to involve both the public and 
     private sectors in the proposed project.
       (2) Selection of states, metropolitan planning 
     organizations, and projects to receive grants.--In selecting 
     States, metropolitan planning organizations, and projects to 
     receive grants under this subsection, the Secretary shall 
     consider--
       (A) the annual volume of commercial vehicle traffic at the 
     border stations or ports of entry of each State as compared 
     to the annual volume of commercial vehicle traffic at the 
     border stations or ports of entry of all States;
       (B) the extent to which commercial vehicle traffic in each 
     State has grown since the date of enactment of the North 
     American Free Trade Agreement Implementation Act (Public Law 
     103-182) as compared to the extent to which that traffic has 
     grown in each other State;
       (C) the extent of border transportation improvements 
     carried out by each State since the date of enactment of that 
     Act;
       (D) the reduction in commercial and other travel time 
     through a major international gateway expected as a result of 
     the project;
       (E) the extent of leveraging of Federal funds provided 
     under this subsection, including--
       (i) use of innovative financing;
       (ii) combination with funding provided under other sections 
     of this Act and title 23, United States Code; and
       (iii) combination with other sources of Federal, State, 
     local, or private funding;
       (F) improvements in vehicle and highway safety and cargo 
     security in and through the gateway concerned;
       (G) the degree of demonstrated coordination with Federal 
     inspection agencies;
       (H) the extent to which the innovative and problem solving 
     techniques of the proposed

[[Page S10672]]

     project would be applicable to other border stations or ports 
     of entry;
       (I) demonstrated local commitment to implement and sustain 
     continuing comprehensive border planning processes and 
     improvement programs; and
       (J) other factors to promote transport efficiency and 
     safety, as determined by the Secretary.
       (3) Use of grants.--
       (A) In general.--A grant under this subsection shall be 
     used to develop project plans, and implement coordinated and 
     comprehensive programs of projects, to improve efficiency and 
     safety.
       (B) Type of plans and programs.--The plans and programs may 
     include--
       (i) improvements to transport and supporting 
     infrastructure;
       (ii) improvements in operational strategies, including 
     electronic data interchange and use of telecommunications to 
     expedite vehicle and cargo movement;
       (iii) modifications to regulatory procedures to expedite 
     vehicle and cargo flow;
       (iv) new infrastructure construction;
       (v) purchase, installation, and maintenance of weigh-in-
     motion devices and associated electronic equipment in Mexico 
     or Canada if real time data from the devices is provided to 
     the nearest border station and to State commercial vehicle 
     enforcement facilities that serve the border station; and
       (vi) other institutional improvements, such as coordination 
     of binational planning, programming, and border operation, 
     with special emphasis on coordination with--

       (I) Federal inspection agencies; and
       (II) their counterpart agencies in Mexico and Canada.

       (4) Construction of transportation infrastructure for law 
     enforcement purposes.--At the request of the Administrator of 
     General Services, in consultation with the Attorney General, 
     the Secretary may transfer, during the period of fiscal years 
     1998 through 2001, not more than $10,000,000 of the amounts 
     made available under paragraph (5) to the Administrator of 
     General Services for the construction of transportation 
     infrastructure necessary for law enforcement in border 
     States.
       (5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $125,000,000 
     for each of fiscal years 1998 through 2003.
       (e) Coordination of Planning.--
       (1) Planning and development of border stations.--The 
     General Services Administration shall be the coordinating 
     Federal agency in the planning and development of new or 
     expanded border stations.
       (2) Cooperative activities.--In carrying out paragraph (1), 
     the Administrator of General Services shall cooperate with 
     Federal inspection agencies and non-Federal governmental 
     jurisdictions to ensure that--
       (A) improvements to border station facilities take into 
     account regional and local conditions, including the 
     alignment of highway systems and connecting roadways; and
       (B) all facility requirements, associated costs, and 
     economic impacts are identified.
       (f) Cost Sharing.--A grant under this section shall be used 
     to pay the Federal share of the cost of a project. The 
     Federal share shall not exceed 80 percent.
       (g) Use of Unallocated Funds.--If the total amount of funds 
     made available from the Highway Trust Fund under this section 
     but not allocated exceeds $4,000,000 as of September 30 of 
     any year, the excess amount--
       (1) shall be apportioned in the following fiscal year by 
     the Secretary to all States in accordance with section 
     104(b)(3) of title 23, United States Code;
       (2) shall be considered to be a sum made available for 
     expenditure on the surface transportation program, except 
     that the amount shall not be subject to section 133(d) of 
     that title; and
       (3) shall be available for any purpose eligible for funding 
     under section 133 of that title.

     SEC. 1117. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

       (a) Availability, Release, and Reallocation of Funds.--
     Section 201(a) of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended--
       (1) in the second sentence, by inserting before the period 
     at the end the following: ``, except that each allocation to 
     a State shall remain available for expenditure in the State 
     for the fiscal year in which the allocation is allocated and 
     for the 3 following fiscal years''; and
       (2) by inserting after the second sentence the following: 
     ``Funds authorized under this section for fiscal year 1998 or 
     a fiscal year thereafter, and not expended by a State during 
     the 4 fiscal years referred to in the preceding sentence, 
     shall be released to the Commission for reallocation and 
     shall remain available until expended.''.
       (b) Substitute Corridor.--Section 201(b) of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is 
     amended--
       (1) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively;
       (2) by striking ``(b) The Commission'' and inserting the 
     following:
       ``(b) Designations.--
       ``(1) In general.--The Commission''; and
       (3) by adding at the end the following:
       ``(2) Substitute corridor.--In lieu of Corridor H in 
     Virginia, the Appalachian development highway system shall 
     include the Virginia portion of the segment identified in 
     section 1105(c)(29) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (109 Stat. 597).''.
       (c) Federal Share for Prefinanced Projects.--Section 
     201(h)(1) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App.) is amended by striking ``70 per centum'' and 
     inserting ``80 percent''.
       (d) Authorization of Contract Authority.--Section 201 of 
     the Appalachian Regional Development Act of 1965 (40 U.S.C. 
     App.) is amended by striking subsection (g) and inserting the 
     following:
       ``(g) Authorization of Contract Authority.--
       ``(1) In general.--
       ``(A) Fiscal years 1998 through 2003.--For the continued 
     construction of the Appalachian development highway system 
     approved as of September 30, 1996, in accordance with this 
     section, there shall be available from the Highway Trust Fund 
     (other than the Mass Transit Account) $40,000,000 for each of 
     fiscal years 1998 through 2000, $50,000,000 for fiscal year 
     2001, $60,000,000 for fiscal year 2002, and $70,000,000 for 
     fiscal year 2003.
       ``(B) Obligation authority.--The Secretary shall provide 
     equivalent amounts of obligation authority for the funds 
     authorized under subparagraph (A).
       ``(2) Contract authority.--Funds authorized under this 
     subsection 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 determined in accordance with this section and the 
     funds shall remain available in accordance with subsection 
     (a).''.

     SEC. 1118. INTERSTATE 4R AND BRIDGE DISCRETIONARY PROGRAM.

       (a) In General.--Section 104 of title 23, United States 
     Code (as amended by section 1113(c)(1)), is amended by 
     inserting after subsection (j) the following:
       ``(k) Set-Aside for Interstate 4R and Bridge Projects.--
       ``(1) In general.--For each of fiscal years 1998 through 
     2003, before any apportionment is made under subsection 
     (b)(1), the Secretary shall set aside $70,000,000 from 
     amounts to be apportioned under subsection (b)(1)(A), and 
     $70,000,000 from amounts to be apportioned under subsection 
     (b)(1)(B), for allocation by the Secretary--
       ``(A) for projects for resurfacing, restoring, 
     rehabilitating, or reconstructing any route or portion of a 
     route on the Interstate System (other than any highway 
     designated as a part of the Interstate System under section 
     103(c)(4) and any toll road on the Interstate System that is 
     not subject to an agreement under section 119(e) (as in 
     effect on December 17, 1991) or an agreement under section 
     129(a));
       ``(B) for projects for a highway bridge the replacement, 
     rehabilitation, or seismic retrofit cost of which is more 
     than $10,000,000; and
       ``(C) for projects for a highway bridge the replacement, 
     rehabilitation, or seismic retrofit cost of which is less 
     than $10,000,000 if the cost is at least twice the amount 
     reserved under section 144(c) by the State in which the 
     bridge is located for the fiscal year in which application is 
     made for an allocation for the bridge under this subsection.
       ``(2) Required allocation.--
       ``(A) In general.--Subject to subparagraph (B), for each of 
     fiscal years 1998 through 2003, the Secretary shall allocate 
     on October 1, for use for highway bridge projects, at least 
     $20,000,000 of the amounts set aside under paragraph (1) to 
     any State that--
       ``(i) is apportioned for fiscal year 1998 under paragraphs 
     (1)(B), (1)(C)(i)(III), and (3)(A)(iii) of subsection (b) an 
     amount that is less than the amount apportioned to the State 
     for the highway bridge replacement and rehabilitation program 
     under section 144 for fiscal year 1997; and
       ``(ii) was apportioned for that program for fiscal year 
     1997 an amount greater than $125,000,000.
       ``(B) Exception.--A State that transferred funds from the 
     highway bridge replacement and rehabilitation program during 
     any of fiscal years 1995 through 1997 in an amount greater 
     than 10 percent of the apportionments for that program for 
     the fiscal year shall not be eligible for an allocation under 
     subparagraph (A).
       ``(C) Additional allocation.--An allocation to a State 
     under subparagraph (A) shall be in addition to any allocation 
     to the State under paragraph (1).
       ``(3) Availability to states of interstate 4r funds.--The 
     Secretary may grant the application of a State for funds made 
     available for a fiscal year for a project described in 
     paragraph (1)(A) if the Secretary determines that--
       ``(A) the State has obligated or demonstrates that it will 
     obligate for the fiscal year all of the apportionments to the 
     State under subparagraphs (A) and (B) of subsection (b)(1) 
     other than an amount that, by itself, is insufficient to pay 
     the Federal share of the cost of a project described in 
     paragraph (1)(A) that has been submitted by the State to the 
     Secretary for approval; and
       ``(B) the State is willing and able to--
       ``(i) obligate the funds within 1 year after the date on 
     which the funds are made available;
       ``(ii) apply the funds to a project that is ready to be 
     commenced; and
       ``(iii) in the case of construction work, begin work within 
     90 days after the date of obligation of the funds.
       ``(4) Eligibility of certain bridges.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, any bridge that is

[[Page S10673]]

     owned and operated by an agency that does not have taxing 
     powers and whose functions include operating a federally 
     assisted public transit system subsidized by toll revenues 
     shall be eligible for assistance under this subsection.
       ``(B) Limitation.--The amount of assistance under 
     subparagraph (A) shall not exceed the cumulative amount that 
     the agency has expended for capital and operating costs to 
     subsidize the transit system.
       ``(C) Determination by the secretary.--Before authorizing 
     an expenditure of funds under this paragraph, the Secretary 
     shall make a determination that the applicant agency has 
     insufficient reserves, surpluses, and projected revenues 
     (over and above those required for bridge and transit capital 
     and operating costs) to fund the necessary bridge 
     replacement, seismic retrofitting, or rehabilitation project.
       ``(D) Crediting of non-federal funds.--Any non-Federal 
     funds expended for the seismic retrofit of the bridge may be 
     credited toward the non-Federal share required as a condition 
     of receipt of any Federal funds for seismic retrofit of the 
     bridge made available after the date of expenditure.
       ``(5) Period of availability of discretionary funds.--
     Amounts made available under this subsection shall remain 
     available until expended.''.
       (b) Conforming Amendment.--Section 118 of title 23, United 
     States Code, is amended by striking subsection (c).

     SEC. 1119. MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY 
                   DEPLOYMENT PROGRAM.

       (a) In General.--Chapter 3 of title 23, United States Code, 
     is amended by inserting after section 321 the following:

     ``Sec. 322. Magnetic levitation transportation technology 
       deployment program

       ``(a) Definitions.--In this section:
       ``(1) Eligible project costs.--The term `eligible project 
     costs' means the capital cost of the fixed guideway 
     infrastructure of a MAGLEV project, including land, piers, 
     guideways, propulsion equipment and other components attached 
     to guideways, power distribution facilities (including 
     substations), control and communications facilities, access 
     roads, and storage, repair, and maintenance facilities, but 
     not including costs incurred for a new station.
       ``(2) Full project costs.--The term `full project costs' 
     means the total capital costs of a MAGLEV project, including 
     eligible project costs and the costs of stations, vehicles, 
     and equipment.
       ``(3) MAGLEV.--The term `MAGLEV' means transportation 
     systems employing magnetic levitation that would be capable 
     of safe use by the public at a speed in excess of 240 miles 
     per hour.
       ``(4) Partnership potential.--The term `partnership 
     potential' has the meaning given the term in the commercial 
     feasibility study of high-speed ground transportation 
     conducted under section 1036 of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240; 
     105 Stat. 1978).
       ``(b) Assistance.--
       ``(1) In general.--The Secretary shall make available 
     financial assistance to provide the Federal share of full 
     project costs of eligible projects selected under this 
     section.
       ``(2) Federal share.--The Federal share of full project 
     costs under paragraph (1) shall be not more than \2/3\.
       ``(3) Use of assistance.--Financial assistance provided 
     under paragraph (1) shall be used only to pay eligible 
     project costs of projects selected under this section.
       ``(c) Solicitation of Applications for Assistance.--Not 
     later than 180 days after the date of enactment of the 
     Intermodal Surface Transportation Efficiency Act of 1997, the 
     Secretary shall solicit 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.
       ``(d) Project Eligibility.--To be eligible to receive 
     financial assistance under subsection (b), a project shall--
       ``(1) involve a segment or segments of a high-speed ground 
     transportation corridor that exhibit partnership potential;
       ``(2) require an amount of Federal funds for project 
     financing that will not exceed the sum of--
       ``(A) the amounts made available under subsection 
     (h)(1)(A); and
       ``(B) the amounts made available by States under subsection 
     (h)(4);
       ``(3) result in an operating transportation facility that 
     provides a revenue producing service;
       ``(4) be undertaken through a public and private 
     partnership, with at least \1/3\ of full project costs paid 
     using non-Federal funds;
       ``(5) satisfy applicable statewide and metropolitan 
     planning requirements;
       ``(6) be approved by the Secretary based on an application 
     submitted to the Secretary by a State or authority designated 
     by 1 or more States;
       ``(7) to the extent that non-United States MAGLEV 
     technology is used within the United States, be carried out 
     as a technology transfer project; and
       ``(8) be carried out using materials at least 70 percent of 
     which are manufactured in the United States.
       ``(e) Project Selection Criteria.--Prior to soliciting 
     applications, the Secretary shall establish criteria for 
     selecting which eligible projects under subsection (d) will 
     receive financial assistance under subsection (b). The 
     criteria shall include the extent to which--
       ``(1) a project is nationally significant, including the 
     extent to which the project will demonstrate the feasibility 
     of deployment of MAGLEV technology throughout the United 
     States;
       ``(2) timely implementation of the project will reduce 
     congestion in other modes of transportation and reduce the 
     need for additional highway or airport construction;
       ``(3) States, regions, and localities financially 
     contribute to the project;
       ``(4) implementation of the project will create new jobs in 
     traditional and emerging industries;
       ``(5) the project will augment MAGLEV networks identified 
     as having partnership potential;
       ``(6) financial assistance would foster public and private 
     partnerships for infrastructure development and attract 
     private debt or equity investment;
       ``(7) financial assistance would foster the timely 
     implementation of a project; and
       ``(8) life-cycle costs in design and engineering are 
     considered and enhanced.
       ``(f) Project Selection.--Not later than 90 days after a 
     deadline established by the Secretary for the receipt of 
     applications, the Secretary shall evaluate the eligible 
     projects in accordance with the selection criteria and select 
     1 eligible project for financial assistance.
       ``(g) Joint Ventures.--A project undertaken by a joint 
     venture of United States and non-United States persons 
     (including a project involving the deployment of non-United 
     States MAGLEV technology in the United States) shall be 
     eligible for financial assistance under this section if the 
     project is eligible under subsection (d) and selected under 
     subsection (f).
       ``(h) Funding.--
       ``(1) In general.--
       ``(A) Authorization of contract authority.--
       ``(i) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $10,000,000 for fiscal year 1999 and 
     $20,000,000 for fiscal year 2000.
       ``(ii) Contract authority.--Funds authorized under this 
     subparagraph shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that--

       ``(I) the Federal share of the cost of a project carried 
     out under this section shall be determined in accordance with 
     subsection (b); and
       ``(II) the availability of the funds shall be determined in 
     accordance with paragraph (2).

       ``(B) Authorization of appropriations.--There are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account) to carry out this 
     section $200,000,000 for each of fiscal years 2000 and 2001, 
     $250,000,000 for fiscal year 2002, and $300,000,000 for 
     fiscal year 2003.
       ``(2) Availability of funds.--Funds made available under 
     paragraph (1) shall remain available until expended.
       ``(3) Other federal funds.--Notwithstanding any other 
     provision of law, funds made available to a State to carry 
     out the surface transportation program under section 133 and 
     the congestion mitigation and air quality improvement program 
     under section 149 may be used by the State to pay a portion 
     of the full project costs of an eligible project selected 
     under this section, without requirement for non-Federal 
     funds.
       ``(4) Other assistance.--Notwithstanding any other 
     provision of law, an eligible project selected under this 
     section shall be eligible for other forms of financial 
     assistance provided under this title and the Transportation 
     Infrastructure Finance and Innovation Act of 1997, including 
     loans, loan guarantees, and lines of credit.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by inserting after 
     the item relating to section 321 the following:

``322. Magnetic levitation transportation technology deployment 
              program.''.

     SEC. 1120. WOODROW WILSON MEMORIAL BRIDGE.

       (a) Definitions.--Section 404 of the Woodrow Wilson 
     Memorial Bridge Authority Act of 1995 (109 Stat. 628) is 
     amended--
       (1) in paragraph (3), by striking ``, including approaches 
     thereto''; and
       (2) in paragraph (5), by striking ``to be determined under 
     section 407. Such'' and all that follows and inserting the 
     following: ``as described in the record of decision executed 
     by the Secretary in compliance with the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
     The term includes ongoing short-term rehabilitation and 
     repairs to the Bridge.''.
       (b) Ownership of Bridge.--
       (1) Conveyance by the secretary.--Section 407(a)(1) of the 
     Woodrow Wilson Memorial Bridge Authority Act of 1995 (109 
     Stat. 630) is amended by inserting ``or any Capital Region 
     jurisdiction'' after ``Authority'' each place it appears.
       (2) Agreement.--Section 407 of the Woodrow Wilson Memorial 
     Bridge Authority Act of 1995 (109 Stat. 630) is amended by 
     striking subsection (c) and inserting the following:
       ``(c) Agreement.--
       ``(1) In general.--The agreement referred to in subsection 
     (a) is an agreement concerning the Project that is executed 
     by the Secretary and the Authority or any Capital Region 
     jurisdiction that accepts ownership of the Bridge.

[[Page S10674]]

       ``(2) Terms of the agreement.--The agreement shall--
       ``(A) identify whether the Authority or a Capital Region 
     jurisdiction will accept ownership of the Bridge;
       ``(B) contain a financial plan satisfactory to the 
     Secretary, which shall be prepared before the execution of 
     the agreement, that specifies--
       ``(i) the total cost of the Project, including any cost-
     saving measures;
       ``(ii) a schedule for implementation of the Project, 
     including whether any expedited design and construction 
     techniques will be used; and
       ``(iii) the sources of funding that will be used to cover 
     any costs of the Project not funded from funds made available 
     under section 412; and
       ``(C) contain such other terms and conditions as the 
     Secretary determines to be appropriate.''.
       (c) Federal Contribution.--The Woodrow Wilson Memorial 
     Bridge Authority Act of 1995 (109 Stat. 627) is amended by 
     adding at the end the following:

     ``SEC. 412. FEDERAL CONTRIBUTION.

       ``(a) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) 
     $100,000,000 for fiscal year 1998, $100,000,000 for fiscal 
     year 1999, $125,000,000 for fiscal year 2000, $175,000,000 
     for fiscal year 2001, $200,000,000 for fiscal year 2002, and 
     $200,000,000 for fiscal year 2003, to pay the costs of 
     planning, preliminary engineering and design, final 
     engineering, acquisition of rights-of-way, and construction 
     of the Project, except that the costs associated with the 
     Bridge shall be given priority over other eligible costs, 
     other than design costs, of the Project.
       ``(2) Contract authority.--Funds authorized 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--
       ``(A) the funds shall remain available until expended;
       ``(B) the Federal share of the cost of the Bridge component 
     of the Project shall not exceed 100 percent; and
       ``(C) the Federal share of the cost of any other component 
     of the Project shall not exceed 80 percent.
       ``(b) Use of Apportioned Funds.--Nothing in this title 
     limits the authority of any Capital Region jurisdiction to 
     use funds apportioned to the jurisdiction under paragraph (1) 
     or (3) of section 104(b) of title 23, United States Code, in 
     accordance with the requirements for such funds, to pay any 
     costs of the Project.
       ``(c) Availability of Apportioned Funds.--None of the funds 
     made available under this section shall be available before 
     the execution of the agreement described in section 407(c), 
     except that the Secretary may fund the maintenance and 
     rehabilitation of the Bridge and the design of the 
     Project.''.
       (d) Conforming Amendment.--Section 405(b)(1) of the Woodrow 
     Wilson Memorial Bridge Authority Act of 1995 (109 Stat. 629) 
     is amended by striking ``the Signatories as to the Federal 
     share of the cost of the Project and the terms and conditions 
     related to the timing of the transfer of the Bridge to''.

     SEC. 1121. NATIONAL HIGHWAY SYSTEM COMPONENTS.

       The National Highway System consists of the routes and 
     transportation facilities depicted on the map submitted by 
     the Secretary to Congress with the report entitled ``Pulling 
     Together: The National Highway System and its Connections to 
     Major Intermodal Terminals'' and dated May 24, 1996.

     SEC. 1122. HIGHWAY BRIDGE REPLACEMENT AND REHABILITATION.

       (a) In General.--Section 144 of title 23, United States 
     Code, is amended--
       (1) in the section heading, by striking ``program'';
       (2) by striking subsections (a) through (n), (p), and (q);
       (3) by inserting after the section heading the following:
       ``(a) Definition of Rehabilitate.--In this section, the 
     term `rehabilitate' (in any of its forms), with respect to a 
     bridge, means to carry out major work necessary--
       ``(1) to address the structural deficiencies, functional 
     obsolescence, or physical deterioration of the bridge; or
       ``(2) to correct a major safety defect of the bridge, 
     including seismic retrofitting.
       ``(b) Bridge Inventory.--
       ``(1) In general.--In consultation with the States, the 
     Secretary shall--
       ``(A) annually inventory all highway bridges on public 
     roads that cross waterways, other topographical barriers, 
     other highways, and railroads;
       ``(B) classify each such bridge according to 
     serviceability, safety, and essentiality for public use; and
       ``(C) assign each such bridge a priority for replacement or 
     rehabilitation based on the classification under subparagraph 
     (B).
       ``(2) Consultation.--In preparing an inventory of highway 
     bridges on Indian reservation roads and park roads under 
     paragraph (1), the Secretary shall consult with the Secretary 
     of the Interior and the States.
       ``(3) Inventory of historical bridges.--At the request of a 
     State, the Secretary may inventory highway bridges on public 
     roads for historical significance.
       ``(c) Certification by the State.--Not later than 180 days 
     after the end of each fiscal year beginning with fiscal year 
     1998, each State shall certify to the Secretary, either 
     that--
       ``(1) the State has reserved, from funds apportioned to the 
     State for the preceding fiscal year, to carry out bridge 
     projects eligible under sections 103(b)(5), 119, and 133(b), 
     an amount that is not less than the amount apportioned to the 
     State under this section for fiscal year 1997; or
       ``(2) the amount that the State will reserve, from funds 
     apportioned to the State for the period consisting of fiscal 
     years 1998 through 2001, to carry out bridge projects 
     eligible under sections 103(b)(5), 119, and 133(b), will be 
     not less than 4 times the amount apportioned to the State 
     under this section for fiscal year 1997.
       ``(d) Use of Reserved Funds.--A State may use funds 
     reserved under subsection (c) to replace, rehabilitate, 
     reconstruct, seismically retrofit, paint, apply calcium 
     magnesium acetate to, apply sodium acetate/formate deicer to, 
     or install scour countermeasures on a highway bridge on a 
     public road that crosses a waterway, other topographical 
     barrier, other highway, or railroad.
       ``(e) Off-System Bridges.--
       ``(1) Required expenditure.--For each fiscal year, an 
     amount equal to not less than 15 percent of the amount 
     apportioned to a State under this section for fiscal year 
     1997 shall be expended by the State for projects to replace, 
     rehabilitate, reconstruct, seismically retrofit, paint, apply 
     calcium magnesium acetate to, apply sodium acetate/formate 
     deicer to, or install scour countermeasures on highway 
     bridges located on public roads that are functionally 
     classified as local roads or rural minor collectors.
       ``(2) Use of funds to meet required expenditure.--Funds 
     reserved under subsection (c) and funds made available under 
     section 104(b)(1) for the National Highway System or under 
     section 104(b)(3) for the surface transportation program may 
     be used to meet the requirement for expenditure under 
     paragraph (1).
       ``(3) Reduction of required expenditure.--After 
     consultation with local and State officials in a State, the 
     Secretary may, with respect to the State, reduce the 
     requirement for expenditure under paragraph (1) if the 
     Secretary determines that the State has inadequate needs to 
     justify the expenditure.
       ``(f) Federal Share.--The Federal share of the cost of a 
     project under this section shall be as determined under 
     section 120(b).
       ``(g) Bridge Permit Exemption.--
       ``(1) In general.--Subject to paragraph (2), 
     notwithstanding any other provision of law, the General 
     Bridge Act of 1946 (33 U.S.C. 525 et seq.) shall apply to 
     each bridge authorized to be replaced, in whole or in part, 
     under this section.
       ``(2) Exception.--Section 502(b) of the General Bridge Act 
     of 1946 (33 U.S.C. 525(b)) and section 9 of the Act of March 
     3, 1899 (30 Stat. 1151, chapter 425; 33 U.S.C. 401), shall 
     not apply to any bridge constructed, reconstructed, 
     rehabilitated, or replaced with assistance under this title 
     if the bridge is over waters that are--
       ``(A) not used and not susceptible to use in their natural 
     condition or by reasonable improvement as a means to 
     transport interstate or foreign commerce; and
       ``(B)(i) not tidal; or
       ``(ii) tidal but used only by recreational boating, 
     fishing, and other small vessels that are less than 21 feet 
     in length.
       ``(h) Indian Reservation Road Bridges.--
       ``(1) Nationwide priority program.--The Secretary shall 
     establish a nationwide priority program for improving 
     deficient Indian reservation road bridges.
       ``(2) Reservation of funds.--
       ``(A) In general.--Of the amounts authorized for Indian 
     reservation roads for each fiscal year, the Secretary, in 
     cooperation with the Secretary of the Interior, shall reserve 
     not less than $9,000,000 for projects to replace, 
     rehabilitate, seismically retrofit, paint, apply calcium 
     magnesium acetate to, apply sodium acetate/formate deicer to, 
     or install scour countermeasures for deficient Indian 
     reservation road bridges, including multiple-pipe culverts.
       ``(B) Eligible bridges.--To be eligible to receive funding 
     under this subsection, a bridge described in subparagraph (A) 
     must--
       ``(i) have an opening of 20 feet or more;
       ``(ii) be on an Indian reservation road;
       ``(iii) be unsafe because of structural deficiencies, 
     physical deterioration, or functional obsolescence; and
       ``(iv) be recorded in the national bridge inventory 
     administered by the Secretary under subsection (b).
       ``(3) Approval requirement.--Funds to carry out Indian 
     reservation road bridge projects under this subsection shall 
     be made available only on approval of plans, specifications, 
     and estimates by the Secretary.'';
       (4) by redesignating subsection (o) as subsection (i); and
       (5) in subsection (i) (as so redesignated)--
       (A) in paragraph (1), by inserting ``for alternative 
     transportation purposes (including bikeway and walkway 
     projects eligible for funding under this title)'' after 
     ``adaptive reuse'';
       (B) in paragraph (3)--
       (i) by inserting ``(regardless of whether the intended use 
     is for motorized vehicular traffic or for alternative public 
     transportation purposes)'' after ``intended use''; and
       (ii) by inserting ``or for alternative public 
     transportation purposes'' after ``no longer used for 
     motorized vehicular traffic''; and
       (C) in the second sentence of paragraph (4)--

[[Page S10675]]

       (i) by inserting ``for motorized vehicles, alternative 
     vehicular traffic, or alternative public transportation'' 
     after ``historic bridge''; and
       (ii) by striking ``up to an amount not to exceed the cost 
     of demolition''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 144 and inserting the following:

``144. Highway bridge replacement and rehabilitation.''.

     SEC. 1123. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT 
                   PROGRAM.

       (a) Established Program.--Section 149(a) of title 23, 
     United States Code, is amended by striking ``Establishment.--
     The Secretary shall establish'' and inserting ``In General.--
     The Secretary shall carry out''.
       (b) Eligible Projects.--Section 149(b) of title 23, United 
     States Code, is amended in the first sentence--
       (1) by striking ``that was designated as a nonattainment 
     area under section 107(d) of the Clean Air Act (42 U.S.C. 
     7407(d)) during any part of fiscal year 1994'' and inserting 
     ``that is designated as a nonattainment area under section 
     107(d) of the Clean Air Act (42 U.S.C. 7407(d)) or classified 
     as a submarginal ozone nonattainment area under that Act, or 
     if the project or program is for a maintenance area,'';
       (2) in paragraph (1)--
       (A) in subparagraph (A), by striking ``clauses (xii) and'' 
     and inserting ``clause''; and
       (B) in subparagraph (B), by striking ``such section'' and 
     inserting ``section 108(f)(1)(A) (other than clause (xvi)) of 
     the Clean Air Act (42 U.S.C. 7408(f)(1)(A))'';
       (3) in paragraph (2), by inserting ``or maintenance'' after 
     ``State implementation'';
       (4) in paragraph (3), by inserting ``or maintenance of the 
     standard'' after ``standard''; and
       (5) in paragraph (4), by inserting ``or maintenance'' after 
     ``attainment''.
       (c) States Receiving Minimum Apportionment.--Section 149 of 
     title 23, United States Code, is amended by striking 
     subsection (c) and inserting the following:
       ``(c) States Receiving Minimum Apportionment.--
       ``(1) States without a nonattainment area.--If a State does 
     not have, and never has had, a nonattainment area designated 
     under the Clean Air Act (42 U.S.C. 7401 et seq.), the State 
     may use funds apportioned to the State under section 
     104(b)(2) for any project eligible under the surface 
     transportation program under section 133.
       ``(2) States with a nonattainment area.--If a State has a 
     nonattainment area or maintenance area and receives funds 
     under section 104(b)(2)(D) above the amount of funds that the 
     State would have received based on its nonattainment and 
     maintenance area population under subparagraphs (B) and (C) 
     of section 104(b)(2), the State may use that portion of the 
     funds not based on its nonattainment and maintenance area 
     population under subparagraphs (B) and (C) of section 
     104(b)(2) for any project in the State eligible under section 
     133.''.
       (d) Federal Share.--Section 120(c) of title 23, United 
     States Code, is amended in the first sentence by striking 
     ``The'' and inserting ``Except in the case of a project 
     funded from sums apportioned under section 104(b)(2), the''.
       (e) Conforming Amendments.--
       (1) Section 101(a) of title 23, United States Code, is 
     amended by inserting after the undesignated paragraph 
     defining ``maintenance'' the following:
       ``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)).''.
       (2) Section 149(b)(1)(A)(ii) of title 23, United States 
     Code, is amended by striking ``an area'' and all that follows 
     and inserting ``a maintenance area; or''.

     SEC. 1124. SAFETY BELT USE LAW REQUIREMENTS.

       Section 355 of the National Highway System Designation Act 
     of 1995 (109 Stat. 624) is amended--
       (1) in the section heading, by striking ``AND MAINE'';
       (2) in subsection (a)--
       (A) by striking ``States of New Hampshire and Maine shall 
     each'' and inserting ``State of New Hampshire shall''; and
       (B) in paragraph (1), by striking ``and 1996'' and 
     inserting ``through 2000''; and
       (3) by striking ``or Maine'' each place it appears.

     SEC. 1125. SENSE OF THE SENATE CONCERNING RELIANCE ON PRIVATE 
                   ENTERPRISE.

       (a) In General.--It is the sense of the Senate that each 
     agency authorized to expend funds made available under this 
     Act, or an amendment made by this Act, or a recipient of any 
     form of a grant or other Federal assistance under this Act, 
     or an amendment made by this Act--
       (1) should, in expending the funds or assistance, rely on 
     entities in the private enterprise system to provide such 
     goods and services as are reasonably and expeditiously 
     available through ordinary business channels; and
       (2) shall not duplicate or compete with entities in the 
     private enterprise system.
       (b) Procedures.--The Secretary should provide procedures to 
     inform each agency that administers this Act and each 
     recipient of a grant or other Federal assistance of the sense 
     of the Senate expressed in subsection (a).

     SEC. 1126. STUDY OF USE OF UNIFORMED POLICE OFFICERS ON 
                   FEDERAL-AID HIGHWAY CONSTRUCTION PROJECTS.

       (a) In General.--In consultation with the States and State 
     transportation departments, the Secretary shall conduct a 
     study on the extent and effectiveness of use by States of 
     uniformed police officers on Federal-aid highway construction 
     projects.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study conducted under 
     subsection (a), including any legislative and administrative 
     recommendations of the Secretary.

     SEC. 1127. CONTRACTING FOR ENGINEERING AND DESIGN SERVICES.

       Section 112(b)(2) of title 23, United States Code, is 
     amended--
       (1) in subparagraph (B)(i), by striking ``, except to'' and 
     all that follows through ``services'';
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Selection, performance, and audits.--
       ``(i) In general.--All requirements for architectural, 
     engineering, and related services at any phase of a highway 
     project funded in whole or in part with Federal-aid highway 
     funds shall be performed by a contract awarded in accordance 
     with subparagraph (A).
       ``(ii) Prohibition on state restriction.--A State shall not 
     impose any overhead restriction that would preclude any 
     qualified firm from being eligible to compete for contracts 
     awarded in accordance with subparagraph (A).
       ``(iii) Compliance with federal acquisition regulations.--
     The process for selection, award, performance, 
     administration, and audit of the resulting contracts shall 
     comply with the cost principles and cost accounting 
     principles of the Federal Acquisition Regulations, including 
     parts 30, 31, and 36 of the Regulations.''; and
       (3) by adding at the end the following:
       ``(H) Compliance.--
       ``(i) In general.--A State shall comply with the 
     qualifications-based selection process, contracting based on 
     the Federal Acquisition Regulations, and the single audit 
     procedures required under this paragraph, or with an existing 
     State law or a statute enacted in accordance with the 
     legislative session exemption under subparagraph (G), with 
     respect to any architecture, engineering, or related service 
     contract for any phase of a Federal-aid highway project.
       ``(ii) States with alternative process.--Any State that, 
     after November 28, 1995, enacted legislation to establish an 
     alternative State process as a substitute for the contract 
     administration and audit procedures required under this 
     paragraph or was granted a waiver under subparagraph (G) 
     shall submit the legislation to the Secretary, not later than 
     60 days after the date of enactment of this subparagraph, for 
     certification that the State legislation is in compliance 
     with the statutory timetable and substantive criteria 
     specified in subparagraph (G).''.
            Subtitle B--Program Streamlining and Flexibility

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 1201. ADMINISTRATIVE EXPENSES.

       Section 104 of title 23, United States Code, is amended by 
     striking subsection (a) and inserting the following:
       ``(a) Administrative Expenses.--
       ``(1) In general.--Whenever an apportionment is made of the 
     sums made available for expenditure on the surface 
     transportation program under section 133, the congestion 
     mitigation and air quality improvement program under section 
     149, or the Interstate and National Highway System program 
     under section 103, the Secretary shall deduct a sum, in an 
     amount not to exceed 1\1/2\ percent of all sums so made 
     available, as the Secretary determines necessary to 
     administer the provisions of law to be financed from 
     appropriations for the Federal-aid highway program and 
     programs authorized under chapter 2.
       ``(2) Consideration of unobligated balances.--In making the 
     determination described in paragraph (1), the Secretary shall 
     take into account the unobligated balance of any sums 
     deducted under this subsection in prior fiscal years.
       ``(3) Availability.--The sum deducted under paragraph (1) 
     shall remain available until expended.''.

     SEC. 1202. REAL PROPERTY ACQUISITION AND CORRIDOR 
                   PRESERVATION.

       (a) Advance Acquisition of Real Property.--Section 108 of 
     title 23, United States Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 108. Advance acquisition of real property'';

     and
       (2) by striking subsection (a) and inserting the following:
       ``(a) In General.--
       ``(1) Availability of funds.--For the purpose of 
     facilitating the timely and economical acquisition of real 
     property for a transportation improvement eligible for 
     funding under this title, the Secretary, upon the request of 
     a State, may make available, for the acquisition of real 
     property, such funds apportioned to the State as may be 
     expended

[[Page S10676]]

     on the transportation improvement, under such rules and 
     regulations as the Secretary may issue.
       ``(2) Construction.--The agreement between the Secretary 
     and the State for the reimbursement of the cost of the real 
     property shall provide for the actual construction of the 
     transportation improvement within a period not to exceed 20 
     years following the fiscal year for which the request is 
     made, unless the Secretary determines that a longer period is 
     reasonable.''.
       (b) Credit for Acquired Lands.--Section 323(b) of title 23, 
     United States Code, is amended--
       (1) in the subsection heading, by striking ``Donated'' and 
     inserting ``Acquired'';
       (2) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) In general.--Notwithstanding any other provision of 
     this title, the State share of the cost of a project with 
     respect to which Federal assistance is provided from the 
     Highway Trust Fund (other than the Mass Transit Account) may 
     be credited in an amount equal to the fair market value of 
     any land that--
       ``(A) is obtained by the State, without violation of 
     Federal law; and
       ``(B) is incorporated into the project.
       ``(2) Establishment of fair market value.--The fair market 
     value of land incorporated into a project and credited under 
     paragraph (1) shall be established in the manner determined 
     by the Secretary, except that--
       ``(A) the fair market value shall not include any increase 
     or decrease in the value of donated property caused by the 
     project; and
       ``(B) the fair market value of donated land shall be 
     established as of the earlier of--
       ``(i) the date on which the donation becomes effective; or
       ``(ii) the date on which equitable title to the land vests 
     in the State.'';
       (3) by striking paragraph (3);
       (4) in paragraph (4), by striking ``to which the donation 
     is applied''; and
       (5) by redesignating paragraph (4) as paragraph (3).
       (c) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 108 and inserting the following:

``108. Advance acquisition of real property.''.

     SEC. 1203. AVAILABILITY OF FUNDS.

       Section 118 of title 23, United States Code, is amended by 
     striking subsection (e) and inserting the following:
       ``(e) Availability of Funds.--
       ``(1) In general.--Any Federal-aid highway funds released 
     by the final payment on a project, or by the modification of 
     a project agreement, shall be credited to the same program 
     funding category for which the funds were previously 
     apportioned and shall be immediately available for 
     obligation.
       ``(2) Transfer of interstate construction funds.--Any 
     Federal-aid highway funds apportioned to a State under 
     section 104(b)(5)(A) (as in effect on the day before the date 
     of enactment of this paragraph) and credited under paragraph 
     (1) may be transferred by the Secretary in accordance with 
     section 103(d).''.

     SEC. 1204. PAYMENTS TO STATES FOR CONSTRUCTION.

       Section 121 of title 23, United States Code, is amended--
       (1) in subsection (a), by striking the second and third 
     sentences and inserting the following: ``The payments may 
     also be made for the value of such materials as--
       ``(1) have been stockpiled in the vicinity of the 
     construction in conformity to plans and specifications for 
     the projects; and
       ``(2) are not in the vicinity of the construction if the 
     Secretary determines that because of required fabrication at 
     an off-site location the materials cannot be stockpiled in 
     the vicinity.'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Project Agreements.--
       ``(1) Payments.--A payment under this chapter may be made 
     only for a project covered by a project agreement.
       ``(2) Source of payments.--After completion of a project in 
     accordance with the project agreement, a State shall be 
     entitled to payment, out of the appropriate sums apportioned 
     or allocated to the State, of the unpaid balance of the 
     Federal share of the cost of the project.'';
       (3) by striking subsections (c) and (d); and
       (4) by redesignating subsection (e) as subsection (c).

     SEC. 1205. PROCEEDS FROM THE SALE OR LEASE OF REAL PROPERTY.

       (a) In General.--Section 156 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 156. Proceeds from the sale or lease of real property

       ``(a) Minimum Charge.--Subject to section 142(f), a State 
     shall charge, at a minimum, fair market value for the sale, 
     use, lease, or lease renewal (other than for utility use and 
     occupancy or for a transportation project eligible for 
     assistance under this title) of real property acquired with 
     Federal assistance made available from the Highway Trust Fund 
     (other than the Mass Transit Account).
       ``(b) Exceptions.--The Secretary may grant an exception to 
     the requirement of subsection (a) for a social, 
     environmental, or economic purpose.
       ``(c) Use of Federal Share of Income.--The Federal share of 
     net income from the revenues obtained by a State under 
     subsection (a) shall be used by the State for projects 
     eligible under this title.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 156 and inserting the following:

``156. Proceeds from the sale or lease of real property.''.

     SEC. 1206. METRIC CONVERSION AT STATE OPTION.

       Section 205(c)(2) of the National Highway System 
     Designation Act of 1995 (23 U.S.C. 109 note; 109 Stat. 577) 
     is amended by striking ``Before September 30, 2000, the'' and 
     inserting ``The''.

     SEC. 1207. REPORT ON OBLIGATIONS.

       Section 104(m) of title 23, United States Code (as 
     redesignated by section 1113(c)(1)), is amended--
       (1) by inserting ``Report to Congress.--'' before ``The 
     Secretary'';
       (2) by striking ``not later than'' and all that follows 
     through ``a report'' and inserting ``a report for each fiscal 
     year'';
       (3) in paragraph (1), by striking ``preceding calendar 
     month'' and inserting ``preceding fiscal year'';
       (4) by striking paragraph (2);
       (5) in paragraph (3), by striking ``such preceding month'' 
     and inserting ``that preceding fiscal year''; and
       (6) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.

     SEC. 1208. TERMINATIONS.

       (a) Right-of-Way Revolving Fund.--Section 108 of title 23, 
     United States Code, is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Termination of Right-of-Way Revolving Fund.--
       ``(1) In general.--Funds apportioned and advanced to a 
     State by the Secretary from the right-of-way revolving fund 
     established by this section prior to the date of enactment of 
     the Intermodal Surface Transportation Efficiency Act of 1997 
     shall remain available to the State for use on the projects 
     for which the funds were advanced for a period of 20 years 
     from the date on which the funds were advanced.
       ``(2) Credit to highway trust fund.--With respect to a 
     project for which funds have been advanced from the right-of-
     way revolving fund, upon the termination of the 20-year 
     period referred to in paragraph (1), when actual construction 
     is commenced, or upon approval by the Secretary of the plans, 
     specifications, and estimates for the actual construction of 
     the project on the right-of-way, whichever occurs first--
       ``(A) the Highway Trust Fund shall be credited with an 
     amount equal to the Federal share of the funds advanced, as 
     provided in section 120, out of any Federal-aid highway funds 
     apportioned to the State in which the project is located and 
     available for obligation for projects of the type funded; and
       ``(B) the State shall reimburse the Secretary in an amount 
     equal to the non-Federal share of the funds advanced for 
     deposit in, and credit to, the Highway Trust Fund.''.
       (b) Pilot Toll Collection Program.--Section 129 of title 
     23, United States Code, is amended by striking subsection 
     (d).
       (c) National Recreational Trails Advisory Committee.--As 
     soon as practicable after the date of enactment of this Act, 
     the Secretary shall take such action as is necessary for the 
     termination of the National Recreational Trails Advisory 
     Committee established by section 1303 of the Intermodal 
     Surface Transportation Efficiency Act of 1991 (16 U.S.C. 
     1262) (as in effect on the day before the date of enactment 
     of this Act).
       (d) Congressional Bridge Commissions.--Public Law 87-441 
     (76 Stat. 59) is repealed.

     SEC. 1209. INTERSTATE MAINTENANCE.

       (a) Interstate Funds.--Section 119 of title 23, United 
     States Code, is amended--
       (1) in subsection (a), by striking the second sentence;
       (2) by striking subsection (d); and
       (3) by striking subsection (f) and inserting the following:
       ``(f) Transferability of Funds.--
       ``(1) Unconditional.--A State may transfer an amount not to 
     exceed 30 percent of the sums apportioned to the State under 
     subparagraphs (A) and (B) of section 104(b)(1) to the 
     apportionment of the State under paragraphs (1)(C) and (3) of 
     section 104(b).
       ``(2) Upon acceptance of certification.--If a State 
     certifies to the Secretary that any part of the sums 
     apportioned to the State under subparagraphs (A) and (B) of 
     section 104(b)(1) is in excess of the needs of the State for 
     resurfacing, restoring, rehabilitating, or reconstructing 
     routes and bridges on the Interstate System in the State and 
     that the State is adequately maintaining the routes and 
     bridges, and the Secretary accepts the certification, the 
     State may transfer, in addition to the amount authorized to 
     be transferred under paragraph (1), an amount not to exceed 
     20 percent of the sums apportioned to the State under 
     subparagraphs (A) and (B) of section 104(b)(1) to the 
     apportionment of the State under paragraphs (1)(C) and (3) of 
     section 104(b).''.
       (b) Eligibility.--Section 119 of title 23, United States 
     Code, is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``and rehabilitating'' and inserting ``, rehabilitating, and 
     reconstructing'';
       (2) by striking subsections (b), (c), (e), and (g);
       (3) by inserting after subsection (a) the following:
       ``(b) Eligible Activities.--
       ``(1) In general.--A State--
       ``(A) may use funds apportioned under subparagraph (A) or 
     (B) of section 104(b)(1) for

[[Page S10677]]

     resurfacing, restoring, rehabilitating, and reconstructing 
     routes on the Interstate System, including--
       ``(i) resurfacing, restoring, rehabilitating, and 
     reconstructing bridges, interchanges, and overcrossings;
       ``(ii) acquiring rights-of-way; and
       ``(iii) intelligent transportation system capital 
     improvements that are infrastructure-based to the extent that 
     they improve the performance of the Interstate System; but
       ``(B) may not use the funds for construction of new travel 
     lanes other than high-occupancy vehicle lanes or auxiliary 
     lanes.
       ``(2) Expansion of capacity.--
       ``(A) Using transferred funds.--Notwithstanding paragraph 
     (1), funds transferred under subsection (c)(1) may be used 
     for construction to provide for expansion of the capacity of 
     an Interstate System highway (including a bridge).
       ``(B) Using funds not transferred.--
       ``(i) In general.--In lieu of transferring funds under 
     subsection (c)(1) and using the transferred funds for the 
     purpose described in subparagraph (A), a State may use an 
     amount of the sums apportioned to the State under 
     subparagraph (A) or (B) of section 104(b)(1) for the purpose 
     described in subparagraph (A).
       ``(ii) Limitation.--The sum of the amount used under clause 
     (i) and any amount transferred under subsection (c)(1) by a 
     State may not exceed 30 percent of the sums apportioned to 
     the State under subparagraphs (A) and (B) of section 
     104(b)(1).''; and
       (4) by redesignating subsection (f) as subsection (c).
       (c) Conforming Amendments.--
       (1) Section 119(a) of title 23, United States Code, is 
     amended in the first sentence by striking ``; except that the 
     Secretary may only approve a project pursuant to this 
     subsection on a toll road if such road is subject to a 
     Secretarial agreement provided for in subsection (e)''.
       (2) Section 1009(c)(2) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (23 U.S.C. 119 note; 
     105 Stat. 1934) is amended by striking ``section 119(f)(1)'' 
     and inserting ``section 119(c)(1)''.

                      CHAPTER 2--PROJECT APPROVAL

     SEC. 1221. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

       Section 104 of title 23, United States Code (as amended by 
     section 1118), is amended by inserting after subsection (k) 
     the following:
       ``(l) Transfer of Highway and Transit Funds.--
       ``(1) Transfer of highway funds.--Funds made available 
     under this title and transferred for transit projects shall 
     be administered by the Secretary in accordance with 
     chapter 53 of title 49, except that the provisions of this 
     title relating to the non-Federal share shall apply to the 
     transferred funds.
       ``(2) Transfer of transit funds.--Funds made available 
     under chapter 53 of title 49 and transferred for highway 
     projects shall be administered by the Secretary in accordance 
     with this title, except that the provisions of that chapter 
     relating to the non-Federal share shall apply to the 
     transferred funds.
       ``(3) Transfer to amtrak and publicly-owned passenger rail 
     lines.--Funds made available under this title or chapter 53 
     of title 49 and transferred to the National Railroad 
     Passenger Corporation or to any publicly-owned intercity or 
     intracity passenger rail line shall be administered by the 
     Secretary in accordance with subtitle V of title 49, except 
     that the provisions of this title or chapter 53 of title 49, 
     as applicable, relating to the non-Federal share shall apply 
     to the transferred funds.
       ``(4) Transfer of obligation authority.--Obligation 
     authority provided for projects described in paragraphs (1) 
     through (3) shall be transferred in the same manner and 
     amount as the funds for the projects are transferred.''.

     SEC. 1222. PROJECT APPROVAL AND OVERSIGHT.

       (a) In General.--Section 106 of title 23, United States 
     Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 106. Project approval and oversight'';

       (2) by redesignating subsections (e) and (f) as subsections 
     (g) and (h), respectively;
       (3) by striking subsections (a) through (d) and inserting 
     the following:
       ``(a) In General.--Except as otherwise provided in this 
     section, the State transportation department shall submit to 
     the Secretary for approval such plans, specifications, and 
     estimates for each proposed project as the Secretary may 
     require. The Secretary shall act upon such plans, 
     specifications, and estimates as soon as practicable after 
     they have been submitted, and shall enter into a formal 
     project agreement with the State transportation department 
     formalizing the conditions of the project approval. The 
     execution of such project agreement shall be deemed a 
     contractual obligation of the Federal Government for the 
     payment of its proportional contribution thereto. In taking 
     such action, the Secretary shall be guided by the provisions 
     of section 109 of this title.
       ``(b) Project Agreement.--The project agreement shall make 
     provision for State funds required for the State's pro rata 
     share of the cost of construction of the project and for the 
     maintenance of the project after completion of construction. 
     The Secretary may rely upon representations made by the State 
     transportation department with respect to the arrangements or 
     agreements made by the State transportation department and 
     appropriate local officials where a part of the project is to 
     be constructed at the expense of, or in cooperation with, 
     local subdivisions of the State.
       ``(c) Special Rules for Project Oversight.--
       ``(1) NHS projects.--Except as otherwise provided in 
     subsection (d) of this section, the Secretary may discharge 
     to the State any of the Secretary's responsibilities for the 
     design, plans, specifications, estimates, contract awards, 
     and inspection of projects under this title on the National 
     Highway System. Before discharging responsibilities to the 
     State, the Secretary shall reach agreement with the State as 
     to the extent to which the State may assume the 
     responsibilities of the Secretary under this subsection. The 
     Secretary may not assume any greater responsibility than the 
     Secretary is permitted under this title as of September 30, 
     1997, except upon agreement by the Secretary and the State.
       ``(2) Non-nhs projects.--For all projects under this title 
     that are off the National Highway System, the State may 
     request that the Secretary no longer review and approve the 
     design, plans, specifications, estimates, contract awards, 
     and inspection of projects under this title. After receiving 
     any such request, the Secretary shall undertake project 
     review only as requested by the State.
       ``(d) Responsibilities of the Secretary.--
       ``(1) In general.--Subject to paragraph (2), nothing in 
     this section, section 133, or section 149 shall affect or 
     discharge any responsibility or obligation of the Secretary 
     under any Federal law other than this title.
       ``(2) Limitation.--Any responsibility or obligation of the 
     Secretary under sections 113 and 114 of this title shall not 
     be affected and may not be discharged under this section, 
     section 133, or section 149.
       ``(e) Value Engineering Analysis.--In such cases as the 
     Secretary determines advisable, plans, specifications, and 
     estimates for proposed projects on any Federal-aid highway 
     shall be accompanied by a value engineering or other cost 
     reduction analysis.
       ``(f) Financial Plan.--The Secretary shall require a 
     financial plan to be prepared for any project with an 
     estimated total cost of $1,000,000,000 or more.''.
       (b) Standards.--
       (1) Elimination of guidelines and annual certification 
     requirements.--Section 109 of title 23, United States Code, 
     is amended--
       (A) by striking subsection (m); and
       (B) by redesignating subsections (n) through (q) as 
     subsections (m) through (p), respectively.
       (2) Safety standards.--Section 109 of title 23, United 
     States Code (as amended by paragraph (1)), is amended by 
     adding at the end the following:
       ``(q) Phase Construction.--Safety considerations for a 
     project under this title may be met by phase construction.''.
       (c) Programs; Project Agreements; Certification 
     Acceptance.--Sections 110 and 117 of title 23, United States 
     Code, are repealed.
       (d) Conforming Amendments.--
       (1) The analysis for chapter 1 of title 23 is amended--
       (A) by striking the item relating to section 106 and 
     inserting the following:

``106. Project approval and oversight.'';
     and
       (B) by striking the items relating to sections 110 and 117.
       (2) Section 101(a) of title 23, United States Code, is 
     amended in the undesignated paragraph defining ``project 
     agreement'' by striking ``the provisions of subsection (a) of 
     section 110 of this title'' and inserting ``section 106''.
       (3) Section 114(a) of title 23, United States Code, is 
     amended in the second sentence by striking ``section 117 of 
     this title'' and inserting ``section 106''.

     SEC. 1223. SURFACE TRANSPORTATION PROGRAM.

       (a) Transportation Enhancement Activities.--Section 133 of 
     title 23, United States Code, is amended--
       (1) in subsection (d)--
       (A) in paragraph (2), by striking ``10'' and inserting 
     ``8''; and
       (B) in the first sentence of paragraph (3)(A), by striking 
     ``80'' and inserting ``82''; and
       (2) in subsection (e)--
       (A) in paragraph (3)(B)(i), by striking ``if the 
     Secretary'' and all that follows through ``activities''; and
       (B) in paragraph (5), by adding at the end the following:
       ``(C) Innovative financing.--
       ``(i) In general.--For each fiscal year, the average annual 
     non-Federal share of the total cost of all projects to carry 
     out transportation enhancement activities in a State shall be 
     not less than the non-Federal share authorized for the State 
     under section 120(b).
       ``(ii) Exception.--Subject to clause (i), notwithstanding 
     section 120, in the case of projects to carry out 
     transportation enhancement activities--

       ``(I) funds from other Federal agencies, and other 
     contributions that the Secretary determines are of value, may 
     be credited toward the non-Federal share of project costs;
       ``(II) the non-Federal share may be calculated on a 
     project, multiple-project, or program basis; and
       ``(III) the Federal share of the cost of an individual 
     project subject to subclause (I) or (II) may be equal to 100 
     percent.''.

       (b) Program Approval.--Section 133(e) of title 23, United 
     States Code, is amended by

[[Page S10678]]

     striking paragraph (2) and inserting the following:
       ``(2) Program approval.--
       ``(A) Submission of project agreement.--For each fiscal 
     year, each State shall submit a project agreement that--
       ``(i) certifies that the State will meet all the 
     requirements of this section; and
       ``(ii) notifies the Secretary of the amount of obligations 
     needed to carry out the program under this section.
       ``(B) Request for adjustments of amounts.--As necessary, 
     each State shall request from the Secretary adjustments to 
     the amount of obligations referred to in subparagraph 
     (A)(ii).
       ``(C) Effect of approval by the secretary.--Approval by the 
     Secretary of a project agreement under subparagraph (A) shall 
     be deemed a contractual obligation of the United States to 
     pay surface transportation program funds made available under 
     this title.''.
       (c) Payments.--Section 133(e)(3)(A) of title 23, United 
     States Code, is amended by striking the second sentence.

     SEC. 1224. DESIGN-BUILD CONTRACTING.

       (a) Authority.--Section 112(b) of title 23, United States 
     Code, is amended--
       (1) in the first sentence of paragraph (1), by striking 
     ``paragraph (2)'' and inserting ``paragraphs (2) and (3)'';
       (2) in paragraph (2)(A), by striking ``Each'' and inserting 
     ``Subject to paragraph (3), each''; and
       (3) by adding at the end the following:
       ``(3) Design-build contracting.--
       ``(A) In general.--A State transportation department may 
     award a contract for the design and construction of a 
     qualified project described in subparagraph (B) using 
     competitive selection procedures approved by the Secretary.
       ``(B) Qualified projects.--A qualified project referred to 
     in subparagraph (A) is a project under this chapter that 
     involves installation of an intelligent transportation system 
     or that consists of a usable project segment and for which--
       ``(i) the Secretary has approved the use of design-build 
     contracting described in subparagraph (A) under criteria 
     specified in regulations promulgated by the Secretary; and
       ``(ii) the total costs are estimated to exceed--

       ``(I) in the case of a project that involves installation 
     of an intelligent transportation system, $5,000,000; and
       ``(II) in the case of a usable project segment, 
     $50,000,000.''.

       (b) Competitive Bidding Defined.--Section 112 of title 23, 
     United States Code, is amended by striking subsection (f) and 
     inserting the following:
       ``(f) Competitive Bidding Defined.--In this section, the 
     term `competitive bidding' means the procedures used to award 
     contracts for engineering and design services under 
     subsection (b)(2) and design-build contracts under subsection 
     (b)(3).''.
       (c) Regulations.--
       (1) In general.--Not later than the effective date 
     specified in subsection (e), the Secretary shall promulgate 
     regulations to carry out the amendments made by this section.
       (2) Contents.--The regulations shall--
       (A) identify the criteria to be used by the Secretary in 
     approving the use by a State transportation department of 
     design-build contracting; and
       (B) establish the procedures to be followed by a State 
     transportation department for obtaining the Secretary's 
     approval of the use of design-build contracting by the 
     department and the selection procedures used by the 
     department.
       (d) Effect on Experimental Program.--Nothing in this 
     section or the amendments made by this section affects the 
     authority to carry out, or any project carried out under, any 
     experimental program concerning design-build contracting that 
     is being carried out by the Secretary as of the date of 
     enactment of this Act.
       (e) Effective Date for Amendments.--The amendments made by 
     this section take effect 2 years after the date of enactment 
     of this Act.

     SEC. 1225. INTEGRATED DECISIONMAKING PROCESS.

       (a) In General.--Subchapter III of chapter 3 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 354. Integrated decisionmaking process

       ``(a) Definitions.--In this section:
       ``(1) Integrated decisionmaking process.--The term 
     `integrated decisionmaking process' means the integrated 
     decisionmaking process established with respect to a surface 
     transportation project under subsection (b).
       ``(2) NEPA process.--The term `NEPA process' means the 
     process of complying with the requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to a surface transportation project.
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(4) Surface transportation project.--The term `surface 
     transportation project' means--
       ``(A) a highway construction project that is subject to the 
     approval of the Secretary under title 23; and
       ``(B) a capital project (as defined in section 5302(a)(1)).
       ``(b) Establishment of Integrated Decisionmaking Processes 
     for Surface Transportation Projects.--The Secretary shall--
       ``(1) establish an integrated decisionmaking process for 
     surface transportation projects that designates major 
     decision points likely to have significant environmental 
     effects and conflicts; and
       ``(2) integrate the requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with the requirements established by the Secretary for 
     transportation planning and decisionmaking.
       ``(c) Integrated Decisionmaking Goals.--The integrated 
     decisionmaking process for surface transportation projects 
     should, to the maximum extent practicable, accomplish the 
     following major goals:
       ``(1) Integrate the NEPA process with the planning, 
     predesign stage, and decisionmaking for surface 
     transportation projects at the earliest possible time.
       ``(2) Integrate all applicable Federal, State, tribal, and 
     local permitting requirements.
       ``(3) Integrate national transportation, social, safety, 
     economic, and environmental goals with State, tribal, and 
     local land use and growth management initiatives.
       ``(4) Consolidate Federal, State, tribal, and local 
     decisionmaking to achieve the best overall public interest 
     according to an agreed schedule.
       ``(d) Streamlining.--
       ``(1) Avoidance of delays, prevention of conflicts, and 
     elimination of unnecessary duplication.--The Secretary shall 
     design the integrated decisionmaking process to avoid delays 
     in decisionmaking, prevent conflicts between cooperating 
     agencies and members of the public, and eliminate unnecessary 
     duplication of review and decisionmaking relating to surface 
     transportation projects.
       ``(2) Integration; comprehensive process.--The NEPA 
     process--
       ``(A) shall be integrated with the transportation planning 
     and decisionmaking of the Federal, State, tribal, and local 
     transportation agencies; and
       ``(B) serve as a comprehensive decisionmaking process.
       ``(3) Other requirements.--
       ``(A) In general.--The Secretary shall--
       ``(i) establish a concurrent transportation and 
     environmental coordination process to reduce paperwork, 
     combine review documents, and eliminate duplicative reviews;
       ``(ii) develop interagency agreements to streamline and 
     improve interagency coordination and processing time;
       ``(iii) apply strategic and programmatic approaches to 
     better integrate and expedite the NEPA process and 
     transportation decisionmaking; and
       ``(iv) ensure, in appropriate cases, by conducting 
     concurrent reviews whenever possible, that any analyses and 
     reviews conducted by the Secretary consider the needs of 
     other reviewing agencies.
       ``(B) Time schedules.--To comply with subparagraph (A)(ii), 
     time schedules shall be consistent with sections 1501.8 and 
     1506.10 of title 40, Code of Federal Regulations (or any 
     successor regulations).
       ``(4) Concurrent processing.--
       ``(A) In general.--The integrated decisionmaking process 
     shall, to the extent practicable, include a procedure to 
     provide for concurrent (rather than sequential) processing of 
     all Federal, State, tribal, and local reviews and decisions 
     emanating from those reviews.
       ``(B) Inconsistency with other requirements.--Subparagraph 
     (A) does not require concurrent review if concurrent review 
     would be inconsistent with other statutory or regulatory 
     requirements.
       ``(e) Interagency Cooperation.--
       ``(1) Lead and cooperating agency concepts.--The lead and 
     cooperating agency concepts of section 1501 of title 40, Code 
     of Federal Regulations (or any successor regulation), shall 
     be considered essential elements to ensure integration of 
     transportation decisionmaking.
       ``(2) Responsibilities.--The Secretary shall--
       ``(A) not later than 60 days after the date on which a 
     surface transportation project is selected for study by a 
     State, identify each Federal agency that may be required to 
     participate in the integrated decisionmaking process relating 
     to the surface transportation project and notify the agency 
     of the surface transportation project;
       ``(B) afford State, regional, tribal, and local governments 
     with decisionmaking authority on surface transportation 
     projects the opportunity to serve as cooperating agencies;
       ``(C) provide cooperating agencies the results of any 
     analysis or other information related to a surface 
     transportation project;
       ``(D) host an early scoping meeting for Federal agencies 
     and, when appropriate, conduct field reviews, as soon as 
     practicable in the environmental review process;
       ``(E) solicit from each cooperating agency as early as 
     practicable the data and analyses necessary to facilitate 
     execution of the duties of each cooperating agency;
       ``(F) use, to the maximum extent possible, scientific, 
     technical, and environmental data and analyses previously 
     prepared by or for other Federal, State, tribal, or local 
     agencies, after an independent evaluation by the Secretary of 
     the data and analyses;
       ``(G) jointly, with the cooperating agencies, host public 
     meetings and other community participation processes; and
       ``(H) ensure that the NEPA process and documentation 
     provide all necessary information for the cooperating agency 
     to--
       ``(i) discharge the responsibilities of the cooperating 
     agency under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) and other law; and

[[Page S10679]]

       ``(ii) grant approvals, permits, licenses, and clearances.
       ``(f) Enhanced Scoping Process.--During the scoping process 
     for a surface transportation project, in addition to other 
     statutory and regulatory requirements, the Secretary shall, 
     to the extent practicable--
       ``(1) provide the public with clearly understandable 
     milestones that occur during an integrated decisionmaking 
     process;
       ``(2) ensure that all agencies with jurisdiction by law or 
     with special expertise have sufficient information and data 
     to discharge their responsibilities;
       ``(3) ensure that all agencies with jurisdiction by law or 
     with special expertise, and the public, are invited to 
     participate in the initial scoping process;
       ``(4) coordinate with other agencies to ensure that the 
     agencies provide to the Secretary, not later than 30 days 
     after the first interagency scoping meeting, any preliminary 
     concerns about how the proposed project may affect matters 
     within their jurisdiction or special expertise based on 
     information available at the time of the scoping meeting; and
       ``(5) in cooperation with all cooperating agencies, develop 
     a schedule for conducting all necessary environmental and 
     other review processes.
       ``(g) Use of Title 23 Funds.--
       ``(1) Use by states.--A State may use funds made available 
     under section 104(b) or 105 of title 23 or section 1102(c) of 
     the Intermodal Surface Transportation Efficiency Act of 1997 
     to provide resources to Federal or State agencies involved in 
     the review or permitting process for a surface transportation 
     project in order to meet a time schedule established under 
     this section.
       ``(2) Use at secretary's discretion.--At the request of 
     another Federal agency involved in the review or permitting 
     process for a surface transportation project, the Secretary 
     may provide funds under chapter 1 of title 23 to the agency 
     to provide resources necessary to meet the time schedules 
     established under this section.
       ``(2) Amount.--Funds may be provided under paragraph (1) in 
     the amount by which the cost to complete a environmental 
     review in accordance with a time schedule established under 
     this section exceeds the cost that would be incurred if there 
     were no such time schedule.
       ``(3) Not final agency action.--The provision of funds 
     under paragraph (1) does not constitute a final agency 
     action.
       ``(h) State Role.--
       ``(1) In general.--For any project eligible for assistance 
     under chapter 1 of title 23, a State may require, by law or 
     agreement coordinating with all related State agencies, that 
     all State agencies that--
       ``(A) have jurisdiction by Federal or State law over 
     environmental, growth management, or land-use related issues 
     that may be affected by a surface transportation project; or
       ``(B) have responsibility for issuing any environment 
     related reviews, analyses, opinions, or determinations;

     be subject to the coordinated environmental review process 
     provided under this section in issuing any analyses or 
     approvals or taking any other action relating to the project.
       ``(2) All agencies.--If a State requires that any State 
     agency participate in a coordinated environmental review 
     process, the State shall require all affected State agencies 
     to participate.
       ``(i) Early Action Regarding Potentially Insurmountable 
     Obstacles.--If, at any time during the integrated 
     decisionmaking process for a proposed surface transportation 
     project, a cooperating agency determines that there is any 
     potentially insurmountable obstacle associated with any of 
     the alternative transportation projects that might be 
     undertaken to address the obstacle, the Secretary shall--
       ``(1) convene a meeting among the cooperating agencies to 
     address the obstacle;
       ``(2) initiate conflict resolution efforts under subsection 
     (j); or
       ``(3) eliminate from consideration the alternative 
     transportation project with which the obstacle is associated.
       ``(j) Conflict Resolution.--
       ``(1) Forum.--The NEPA process shall be used as a forum to 
     coordinate the actions of Federal, State, regional, tribal, 
     and local agencies, the private sector, and the public to 
     develop and shape surface transportation projects.
       ``(2) Approaches.--Collaborative, problem solving, and 
     consensus building approaches shall be used (and, when 
     appropriate, mediation may be used) to implement the 
     integrated decisionmaking process with a goal of 
     appropriately considering factors relating to transportation 
     development, economic prosperity, protection of public health 
     and the environment, community and neighborhood preservation, 
     and quality of life for present and future generations.
       ``(3) Unresolved issues.--
       ``(A) Notification.--If, before the final transportation 
     NEPA document is approved--
       ``(i) an issue remains unresolved between the lead Federal 
     agency and the cooperating agency; and
       ``(ii) efforts have been exhausted to resolve the issue at 
     the field levels of each agency--

       ``(I) within the applicable timeframe of the interagency 
     schedule established under subsection (f)(5); or
       ``(II) if no timeframe is established, within 90 days;

     the field level officer of the lead agency shall notify the 
     field level officer of the cooperating agency that the field 
     level officer of the lead agency intends to bring the issue 
     to the personal attention of the heads of the agencies.
       ``(B) Efforts by the agency heads.--The head of the lead 
     agency shall contact the head of the cooperating agency and 
     attempt to resolve the issue within 30 days after 
     notification by the field level officer of the unresolved 
     issue.
       ``(C) Consultation with ceq.--The heads of the agencies are 
     encouraged to consult with the Chair of the Council on 
     Environmental Quality during the 30-day period under 
     subparagraph (B).
       ``(D) Failure to resolve.--If the heads of the agencies do 
     not resolve the issue within the time specified in 
     subparagraph (B), the referral process under part 1504 of 
     title 40, Code of Federal Regulations (or any successor 
     regulation), shall be initiated with respect to the issue.
       ``(k) Judicial Review.--Nothing in this section affects the 
     reviewability of any final agency action in a district court 
     of the United States or any State court.
       ``(l) Statutory Construction.--Nothing in this section 
     affects--
       ``(1) the applicability of the requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or 
     any other statute; or
       ``(2) the responsibility of any Federal, State, tribal, or 
     local officer to comply with or enforce any statute or 
     regulation.''.
       (b) Timetable; Report to Congress.--The Secretary, in 
     consultation with the Chair of the Council on Environmental 
     Quality and after notice and opportunity for public comment--
       (1) not later than 180 days after the date of enactment of 
     this Act, shall design the integrated decisionmaking process 
     required by the amendment made by subsection (a);
       (2) not later than 1 year after the date of enactment of 
     this Act, shall promulgate a regulation governing 
     implementation of an integrated decisionmaking process in 
     accordance with the amendment made by subsection (a); and
       (3) not later than 2 years after the date of enactment of 
     this Act, shall submit to Congress a report identifying any 
     additional legislative or other solutions that would further 
     enhance the integrated decisionmaking process.
       (c) Conforming Amendment.--The analysis for subchapter III 
     of chapter 3 of title 49, United States Code, is amended by 
     adding at the end the following:

``354. Integrated decisionmaking process.''.

                 CHAPTER 3--ELIGIBILITY AND FLEXIBILITY

     SEC. 1231. DEFINITION OF OPERATIONAL IMPROVEMENT.

       Section 101(a) of title 23, United States Code, is amended 
     by striking the undesignated paragraph defining ``operational 
     improvement'' and inserting the following:
       ``The term `operational improvement' means the 
     installation, operation, or maintenance, in accordance with 
     subchapter II of chapter 5, of public infrastructure to 
     support intelligent transportation systems and includes the 
     installation or operation of any traffic management activity, 
     communication system, or roadway weather information and 
     prediction system, and any other improvement that the 
     Secretary may designate that enhances roadway safety and 
     mobility during adverse weather.''.

     SEC. 1232. ELIGIBILITY OF FERRY BOATS AND FERRY TERMINAL 
                   FACILITIES.

       (a) In General.--Section 129(c) of title 23, United States 
     Code, is amended by inserting ``in accordance with sections 
     103, 133, and 149,'' after ``toll or free,''.
       (b) National Highway System.--Section 103(b)(5) of title 
     23, United States Code (as amended by section 1234), is 
     amended by adding at the end the following:
       ``(R) Construction of ferry boats and ferry terminal 
     facilities, if the conditions described in section 129(c) are 
     met.''.
       (c) Surface Transportation Program.--Section 133(b) of 
     title 23, United States Code, is amended by adding at the end 
     the following:
       ``(12) Construction of ferry boats and ferry terminal 
     facilities, if the conditions described in section 129(c) are 
     met.''.
       (d) Congestion Mitigation and Air Quality Improvement 
     Program.--Section 149(b) of title 23, United States Code, is 
     amended--
       (1) in paragraph (3), by striking ``or'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting ``; or''; and
       (3) by inserting after paragraph (4) the following:
       ``(5) if the project or program is to construct a ferry 
     boat or ferry terminal facility and if the conditions 
     described in section 129(c) are met.''.

     SEC. 1233. FLEXIBILITY OF SAFETY PROGRAMS.

       Section 133(d) of title 23, United States Code, is amended 
     by striking paragraph (1) and inserting the following:
       ``(1) Safety programs.--
       ``(A) In general.--With respect to funds apportioned for 
     each of fiscal years 1998 through 2003--
       ``(i) an amount equal to 2 percent of the amount 
     apportioned to a State under section 104(b)(3) shall be 
     available only to carry out activities eligible under section 
     130;
       ``(ii) an amount equal to 2 percent of the amount 
     apportioned to a State under section 104(b)(3) shall be 
     available only to carry out activities eligible under section 
     152; and

[[Page S10680]]

       ``(iii) an amount equal to 6 percent of the amount 
     apportioned to a State under section 104(b)(3) shall be 
     available only to carry out activities eligible under section 
     130 or 152.
       ``(B) Transfer of funds.--If a State certifies to the 
     Secretary that any part of the amount set aside by the State 
     under subparagraph (A)(i) is in excess of the needs of the 
     State for activities under section 130 and the Secretary 
     accepts the certification, the State may transfer that excess 
     part to the set-aside of the State under subparagraph 
     (A)(ii).
       ``(C) Transfers to other safety programs.--A State may 
     transfer funds set aside under subparagraph (A)(iii) to the 
     apportionment of the State under section 402 or the 
     allocation of the State under section 31104 of title 49.''.

     SEC. 1234. ELIGIBILITY OF PROJECTS ON THE NATIONAL HIGHWAY 
                   SYSTEM.

       Section 103(b) of title 23, United States Code (as amended 
     by section 1701(a)), is amended by adding at the end the 
     following:
       ``(5) Eligible projects for nhs.--Subject to approval by 
     the Secretary, funds apportioned to a State under section 
     104(b)(1)(C) for the National Highway System may be obligated 
     for any of the following:
       ``(A) Construction, reconstruction, resurfacing, 
     restoration, and rehabilitation of segments of the National 
     Highway System.
       ``(B) Operational improvements for segments of the National 
     Highway System.
       ``(C) Construction of, and operational improvements for, a 
     Federal-aid highway not on the National Highway System, 
     construction of a transit project eligible for assistance 
     under chapter 53 of title 49, and capital improvements to any 
     National Railroad Passenger Corporation passenger rail line 
     or any publicly-owned intercity passenger rail line, if--
       ``(i) the highway, transit, or rail project is in the same 
     corridor as, and in proximity to, a fully access-controlled 
     highway designated as a part of the National Highway System;
       ``(ii) the construction or improvements will improve the 
     level of service on the fully access-controlled highway 
     described in clause (i) and improve regional traffic flow; 
     and
       ``(iii) the construction or improvements are more cost-
     effective than an improvement to the fully access-controlled 
     highway described in clause (i).
       ``(D) Highway safety improvements for segments of the 
     National Highway System.
       ``(E) Transportation planning in accordance with sections 
     134 and 135.
       ``(F) Highway research and planning in accordance with 
     chapter 5.
       ``(G) Highway-related technology transfer activities.
       ``(H) Capital and operating costs for traffic monitoring, 
     management, and control facilities and programs.
       ``(I) Fringe and corridor parking facilities.
       ``(J) Carpool and vanpool projects.
       ``(K) Bicycle transportation and pedestrian walkways in 
     accordance with section 217.
       ``(L) Development, establishment, and implementation of 
     management systems under section 303.
       ``(M) In accordance with all applicable Federal law 
     (including regulations), participation in natural habitat and 
     wetland mitigation efforts related to projects funded under 
     this title, which may include participation in natural 
     habitat and wetland mitigation banks, contributions to 
     statewide and regional efforts to conserve, restore, enhance, 
     and create natural habitats and wetland, and development of 
     statewide and regional natural habitat and wetland 
     conservation and mitigation plans, including any such banks, 
     efforts, and plans authorized under the Water Resources 
     Development Act of 1990 (Public Law 101-640) (including 
     crediting provisions). Contributions to the mitigation 
     efforts described in the preceding sentence may take place 
     concurrent with or in advance of project construction, except 
     that contributions in advance of project construction may 
     occur only if the efforts are consistent with all applicable 
     requirements of Federal law (including regulations) and State 
     transportation planning processes.
       ``(N) Publicly-owned intracity or intercity passenger rail 
     or bus terminals, including terminals of the National 
     Railroad Passenger Corporation and publicly-owned intermodal 
     surface freight transfer facilities, other than seaports and 
     airports, if the terminals and facilities are located on or 
     adjacent to National Highway System routes or connections to 
     the National Highway System selected in accordance with 
     paragraph (2).
       ``(O) Infrastructure-based intelligent transportation 
     systems capital improvements.
       ``(P) In the Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, any project 
     eligible for funding under section 133, any airport, and any 
     seaport.
       ``(Q) Publicly owned components of magnetic levitation 
     transportation systems.''.

     SEC. 1235. ELIGIBILITY OF PROJECTS UNDER THE SURFACE 
                   TRANSPORTATION PROGRAM.

       Section 133(b) of title 23, United States Code (as amended 
     by section 1232(c)), is amended--
       (1) in paragraph (2), by striking ``and publicly owned 
     intracity or intercity bus terminals and facilities'' and 
     inserting ``, including vehicles and facilities, whether 
     publicly or privately owned, that are used to provide 
     intercity passenger service by bus or rail'';
       (2) in paragraph (3)--
       (A) by striking ``and bicycle'' and inserting ``bicycle''; 
     and
       (B) by inserting before the period at the end the 
     following: ``, and the modification of public sidewalks to 
     comply with the Americans with Disabilities Act of 1990 (42 
     U.S.C. 12101 et seq.)'';
       (3) in paragraph (4)--
       (A) by inserting ``, publicly owned passenger rail,'' after 
     ``Highway'';
       (B) by inserting ``infrastructure'' after ``safety''; and
       (C) by inserting before the period at the end the 
     following: ``, and any other noninfrastructure highway safety 
     improvements'';
       (4) in the first sentence of paragraph (11)--
       (A) by inserting ``natural habitat and'' after 
     ``participation in'' each place it appears;
       (B) by striking ``enhance and create'' and inserting 
     ``enhance, and create natural habitats and''; and
       (C) by inserting ``natural habitat and'' before ``wetlands 
     conservation''; and
       (5) by adding at the end the following:
       ``(13) Publicly owned intercity passenger rail 
     infrastructure, including infrastructure owned by the 
     National Railroad Passenger Corporation.
       ``(14) Publicly owned passenger rail vehicles, including 
     vehicles owned by the National Railroad Passenger 
     Corporation.
       ``(15) Infrastructure-based intelligent transportation 
     systems capital improvements.
       ``(16) Publicly owned components of magnetic levitation 
     transportation systems.
       ``(17) Environmental restoration and pollution abatement 
     projects (including the retrofit or construction of storm 
     water treatment systems) to address water pollution or 
     environmental degradation caused or contributed to by 
     transportation facilities, which projects shall be carried 
     out when the transportation facilities are undergoing 
     reconstruction, rehabilitation, resurfacing, or restoration; 
     except that the expenditure of funds under this section for 
     any such environmental restoration or pollution abatement 
     project shall not exceed 20 percent of the total cost of the 
     reconstruction, rehabilitation, resurfacing, or restoration 
     project.''.

     SEC. 1236. DESIGN FLEXIBILITY.

       Section 109 of title 23, United States Code, is amended by 
     striking subsection (a) and inserting the following:
       ``(a) In General.--
       ``(1) Requirements for facilities.--The Secretary shall 
     ensure that the plans and specifications for each proposed 
     highway project under this chapter provide for a facility 
     that will--
       ``(A) adequately serve the existing traffic of the highway 
     in a manner that is conducive to safety, durability, and 
     economy of maintenance; and
       ``(B) be designed and constructed in accordance with 
     criteria best suited to accomplish the objectives described 
     in subparagraph (A) and to conform to the particular needs of 
     each locality.
       ``(2) Consideration of planned future traffic demands.--In 
     carrying out paragraph (1), the Secretary shall ensure the 
     consideration of the planned future traffic demands of the 
     facility.''.
                          Subtitle C--Finance

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 1301. STATE INFRASTRUCTURE BANK PROGRAM.

       (a) In General.--Chapter 1 of title 23, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 162. State infrastructure bank program

       ``(a) Definitions.--In this section:
       ``(1) Other assistance.--The term `other assistance' 
     includes any use of funds in an infrastructure bank--
       ``(A) to provide credit enhancements;
       ``(B) to serve as a capital reserve for bond or debt 
     instrument financing;
       ``(C) to subsidize interest rates;
       ``(D) to ensure the issuance of letters of credit and 
     credit instruments;
       ``(E) to finance purchase and lease agreements with respect 
     to transit projects;
       ``(F) to provide bond or debt financing instrument 
     security; and
       ``(G) to provide other forms of debt financing and methods 
     of leveraging funds that are approved by the Secretary and 
     that relate to the project with respect to which the 
     assistance is being provided.
       ``(2) State.--The term `State' has the meaning given the 
     term under section 401.
       ``(b) Cooperative Agreements.--
       ``(1) In general.--
       ``(A) Purpose of agreements.--Subject to this section, the 
     Secretary may enter into cooperative agreements with States 
     for the establishment of State infrastructure banks and 
     multistate infrastructure banks for making loans and 
     providing other assistance to public and private entities 
     carrying out or proposing to carry out projects eligible for 
     assistance under this section.
       ``(B) Contents of agreements.--Each cooperative agreement 
     shall specify procedures and guidelines for establishing, 
     operating, and providing assistance from the infrastructure 
     bank.
       ``(2) Interstate compacts.--If 2 or more States enter into 
     a cooperative agreement under paragraph (1) with the 
     Secretary for the establishment of a multistate 
     infrastructure bank, Congress grants consent to those States 
     to enter into an interstate compact establishing the bank in 
     accordance with this section.
       ``(c) Funding.--
       ``(1) Contribution.--Notwithstanding any other provision of 
     law, the Secretary may

[[Page S10681]]

     allow, subject to subsection (h)(1), a State that enters into 
     a cooperative agreement under this section to contribute to 
     the infrastructure bank established by the State not to 
     exceed--
       ``(A)(i) the total amount of funds apportioned to the State 
     under each of paragraphs (1) and (3) of section 104(b), 
     excluding funds set aside under paragraphs (1) and (2) of 
     section 133(d); and
       ``(ii) the total amount of funds allocated to the State 
     under section 105 and under section 1102 of the Intermodal 
     Surface Transportation Efficiency Act of 1997;
       ``(B) the total amount of funds made available to the State 
     or other Federal transit grant recipient for capital projects 
     (as defined in section 5302 of title 49) under sections 5307, 
     5309, and 5311 of title 49; and
       ``(C) the total amount of funds made available to the State 
     under subtitle V of title 49.
       ``(2) Capitalization grant.--For the purposes of this 
     section, Federal funds contributed to the infrastructure bank 
     under this subsection shall constitute a capitalization grant 
     for the infrastructure bank.
       ``(3) Special rule for urbanized areas of over 200,000.--
     Funds that are apportioned or allocated to a State under 
     section 104(b)(3) and attributed to urbanized areas of a 
     State with a population of over 200,000 individuals under 
     section 133(d)(2) may be used to provide assistance from an 
     infrastructure bank under this section with respect to 
     a project only if the metropolitan planning organization 
     designated for the area concurs, in writing, with the 
     provision of the assistance.
       ``(d) Forms of Assistance From Infrastructure Banks.--
       ``(1) In general.--An infrastructure bank established under 
     this section may make loans or provide other assistance to a 
     public or private entity in an amount equal to all or part of 
     the cost of carrying out a project eligible for assistance 
     under this section.
       ``(2) Subordination of loans.--The amount of any loan or 
     other assistance provided for the project may be subordinated 
     to any other debt financing for the project.
       ``(3) Initial assistance.--Initial assistance provided with 
     respect to a project from Federal funds contributed to an 
     infrastructure bank under this section shall not be made in 
     the form of a grant.
       ``(e) Qualifying Projects.--
       ``(1) In general.--Subject to paragraph (2), funds in an 
     infrastructure bank established under this section may be 
     used only to provide assistance with respect to projects 
     eligible for assistance under this title, for capital 
     projects (as defined in section 5302 of title 49), or for any 
     other project that the Secretary determines to be 
     appropriate.
       ``(2) Interstate funds.--Funds contributed to an 
     infrastructure bank from funds apportioned to a State under 
     subparagraph (A) or (B) of section 104(b)(1) may be used only 
     to provide assistance with respect to projects eligible for 
     assistance under those subparagraphs.
       ``(3) Rail program funds.--Funds contributed to an 
     infrastructure bank from funds made available to a State 
     under subtitle V of title 49 shall be used in a manner 
     consistent with any project description specified under the 
     law making the funds available to the State.
       ``(f) Infrastructure Bank Requirements.--
       ``(1) In general.--Subject to paragraph (2), in order to 
     establish an infrastructure bank under this section, each 
     State establishing such a bank shall--
       ``(A) contribute, at a minimum, to the bank from non-
     Federal sources an amount equal to 25 percent of the amount 
     of each capitalization grant made to the State and 
     contributed to the bank under subsection (c);
       ``(B) ensure that the bank maintains on a continuing basis 
     an investment grade rating on its debt issuances and its 
     ability to pay claims under credit enhancement programs of 
     the bank;
       ``(C) ensure that investment income generated by funds 
     contributed to the bank will be--
       ``(i) credited to the bank;
       ``(ii) available for use in providing loans and other 
     assistance to projects eligible for assistance from the bank; 
     and
       ``(iii) invested in United States Treasury securities, bank 
     deposits, or such other financing instruments as the 
     Secretary may approve to earn interest to enhance the 
     leveraging of projects assisted by the bank;
       ``(D) ensure that any loan from the bank will bear interest 
     at or below market rates, as determined by the State, to make 
     the project that is the subject of the loan feasible;
       ``(E) ensure that repayment of the loan from the bank will 
     commence not later than 5 years after the project has been 
     completed or, in the case of a highway project, the facility 
     has opened to traffic, whichever is later;
       ``(F) ensure that the term for repaying any loan will not 
     exceed the lesser of--
       ``(i) 35 years after the date of the first payment on the 
     loan under subparagraph (E); or
       ``(ii) the useful life of the investment; and
       ``(G) require the bank to make a biennial report to the 
     Secretary and to make such other reports as the Secretary may 
     require in guidelines.
       ``(2) Waivers by the secretary.--The Secretary may waive a 
     requirement of any of subparagraphs (C) through (G) of 
     paragraph (1) with respect to an infrastructure bank if the 
     Secretary determines that the waiver is consistent with the 
     objectives of this section.
       ``(g) Limitation on Repayments.--Notwithstanding any other 
     provision of law, the repayment of a loan or other assistance 
     provided from an infrastructure bank under this section may 
     not be credited toward the non-Federal share of the cost 
     of any project.
       ``(h) Secretarial Requirements.--In administering this 
     section, the Secretary shall--
       ``(1) ensure that Federal disbursements shall be at an 
     annual rate of not more than 20 percent of the amount 
     designated by the State for State infrastructure bank 
     capitalization under subsection (c)(1), except that the 
     Secretary may disburse funds to a State in an amount needed 
     to finance a specific project; and
       ``(2) revise cooperative agreements entered into with 
     States under section 350 of the National Highway System 
     Designation Act of 1995 (Public Law 104-59) to comply with 
     this section.
       ``(i) Applicability of Federal Law.--
       ``(1) In general.--The requirements of this title or title 
     49 that would otherwise apply to funds made available under 
     that title and projects assisted with those funds shall apply 
     to--
       ``(A) funds made available under that title and contributed 
     to an infrastructure bank established under this section, 
     including the non-Federal contribution required under section 
     (f); and
       ``(B) projects assisted by the bank through the use of the 
     funds;

     except to the extent that the Secretary determines that any 
     requirement of that title (other than sections 113 and 114 of 
     this title and section 5333 of title 49) is not consistent 
     with the objectives of this section.
       ``(2) Repayments.--The requirements of this title or title 
     49 shall not apply to repayments from non-Federal sources to 
     an infrastructure bank from projects assisted by the bank. 
     Such a repayment shall not be considered to be Federal funds.
       ``(j) United States Not Obligated.--
       ``(1) In general.--The contribution of Federal funds to an 
     infrastructure bank established under this section shall not 
     be construed as a commitment, guarantee, or obligation on the 
     part of the United States to any third party. No third party 
     shall have any right against the United States for payment 
     solely by virtue of the contribution.
       ``(2) Statement.--Any security or debt financing instrument 
     issued by the infrastructure bank shall expressly state that 
     the security or instrument does not constitute a commitment, 
     guarantee, or obligation of the United States.
       ``(k) Management of Federal Funds.--Sections 3335 and 6503 
     of title 31, United States Code, shall not apply to funds 
     contributed under this section.
       ``(l) Program Administration.--
       ``(1) In general.--A State may expend not to exceed 2 
     percent of the Federal funds contributed to an infrastructure 
     bank established by the State under this section to pay the 
     reasonable costs of administering the bank.
       ``(2) Non-federal funds.--The limitation described in 
     paragraph (1) shall not apply to non-Federal funds.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by adding at the end 
     the following:

``162. State infrastructure bank program.''.

    CHAPTER 2--TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION

     SEC. 1311. SHORT TITLE.

       This chapter may be cited as the ``Transportation 
     Infrastructure Finance and Innovation Act of 1997''.

     SEC. 1312. FINDINGS.

       Congress finds that--
       (1) a well-developed system of transportation 
     infrastructure is critical to the economic well-being, 
     health, and welfare of the people of the United States;
       (2) traditional public funding techniques such as grant 
     programs are unable to keep pace with the infrastructure 
     investment needs of the United States because of budgetary 
     constraints at the Federal, State, and local levels of 
     government;
       (3) major transportation infrastructure facilities that 
     address critical national needs, such as intermodal 
     facilities, border crossings, and multistate trade corridors, 
     are of a scale that exceeds the capacity of Federal and State 
     assistance programs in effect on the date of enactment of 
     this Act;
       (4) new investment capital can be attracted to 
     infrastructure projects that are capable of generating their 
     own revenue streams through user charges or other dedicated 
     funding sources; and
       (5) a Federal credit program for projects of national 
     significance can complement existing funding resources by 
     filling market gaps, thereby leveraging substantial private 
     co-investment.

     SEC. 1313. DEFINITIONS.

       In this chapter:
       (1) Eligible project costs.--The term ``eligible project 
     costs'' means amounts substantially all of which are paid by, 
     or for the account of, an obligor in connection with a 
     project, including the cost of--
       (A) development phase activities, including planning, 
     feasibility analysis, revenue forecasting, environmental 
     review, permitting, preliminary engineering and design work, 
     and other preconstruction activities;
       (B) construction, reconstruction, rehabilitation, 
     replacement, and acquisition of real

[[Page S10682]]

     property (including land related to the project and 
     improvements to land), environmental mitigation, construction 
     contingencies, and acquisition of equipment; and
       (C) interest during construction, reasonably required 
     reserve funds, capital issuance expenses, and other carrying 
     costs during construction.
       (2) Federal credit instrument.--The term ``Federal credit 
     instrument'' means a secured loan, loan guarantee, or line of 
     credit authorized to be made available under this chapter 
     with respect to a project.
       (3) Lender.--The term ``lender'' means any non-Federal 
     qualified institutional buyer (as defined in section 
     230.144A(a) of title 17, Code of Federal Regulations (or any 
     successor regulation), known as Rule 144A(a) of the 
     Securities and Exchange Commission and issued under the 
     Securities Act of 1933 (15 U.S.C. 77a et seq.)), including--
       (A) a qualified retirement plan (as defined in section 
     4974(c) of the Internal Revenue Code of 1986) that is a 
     qualified institutional buyer; and
       (B) a governmental plan (as defined in section 414(d) of 
     the Internal Revenue Code of 1986) that is a qualified 
     institutional buyer.
       (4) Line of credit.--The term ``line of credit'' means an 
     agreement entered into by the Secretary with an obligor under 
     section 1316 to provide a direct loan at a future date upon 
     the occurrence of certain events.
       (5) Loan guarantee.--The term ``loan guarantee'' means any 
     guarantee or other pledge by the Secretary to pay all or part 
     of the principal of and interest on a loan or other debt 
     obligation issued by an obligor and funded by a lender.
       (6) Local servicer.--The term ``local servicer'' means--
       (A) a State infrastructure bank established under title 23, 
     United States Code; or
       (B) a State or local government or any agency of a State or 
     local government that is responsible for servicing a Federal 
     credit instrument on behalf of the Secretary.
       (7) Obligor.--The term ``obligor'' means a party primarily 
     liable for payment of the principal of or interest on a 
     Federal credit instrument, which party may be a corporation, 
     partnership, joint venture, trust, or governmental entity, 
     agency, or instrumentality.
       (8) Project.--The term ``project'' means any surface 
     transportation project eligible for Federal assistance under 
     title 23 or chapter 53 of title 49, United States Code.
       (9) Project obligation.--The term ``project obligation'' 
     means any note, bond, debenture, or other debt obligation 
     issued by an obligor in connection with the financing of a 
     project, other than a Federal credit instrument.
       (10) Secured loan.--The term ``secured loan'' means a 
     direct loan or other debt obligation issued by an obligor and 
     funded by the Secretary in connection with the financing of a 
     project under section 1315.
       (11) State.--The term ``State'' has the meaning given the 
     term in section 101 of title 23, United States Code.
       (12) Substantial completion.--The term ``substantial 
     completion'' means the opening of a project to vehicular or 
     passenger traffic.

     SEC. 1314. DETERMINATION OF ELIGIBILITY AND PROJECT 
                   SELECTION.

       (a) Eligibility.--To be eligible to receive financial 
     assistance under this chapter, a project shall meet the 
     following criteria:
       (1) Inclusion in transportation plans and programs.--The 
     project--
       (A) shall be included in the State transportation plan 
     required under section 135 of title 23, United States Code; 
     and
       (B) at such time as an agreement to make available a 
     Federal credit instrument is entered into under this chapter, 
     shall be included in the approved State transportation 
     improvement program required under section 134 of that title.
       (2) Application.--A State, a local servicer identified 
     under section 1317(a), or the entity undertaking the project 
     shall submit a project application to the Secretary.
       (3) Eligible project costs.--
       (A) In general.--Except as provided in subparagraph (B), to 
     be eligible for assistance under this chapter, a project 
     shall have eligible project costs that are reasonably 
     anticipated to equal or exceed the lesser of--
       (i) $100,000,000; or
       (ii) 50 percent of the amount of Federal-aid highway funds 
     apportioned for the most recently-completed fiscal year under 
     title 23, United States Code, to the State in which the 
     project is located.
       (B) Intelligent transportation system projects.--In the 
     case of a project involving the installation of an 
     intelligent transportation system, eligible project costs 
     shall be reasonably anticipated to equal or exceed 
     $30,000,000.
       (4) Dedicated revenue sources.--Project financing shall be 
     repayable in whole or in part by user charges or other 
     dedicated revenue sources.
       (5) Public sponsorship of private entities.--In the case of 
     a project that is undertaken by an entity that is not a State 
     or local government or an agency or instrumentality of a 
     State or local government, the project that the entity is 
     undertaking shall be publicly sponsored as provided in 
     paragraphs (1) and (2).
       (b) Selection Among Eligible Projects.--
       (1) Establishment.--The Secretary shall establish criteria 
     for selecting among projects that meet the eligibility 
     criteria specified in subsection (a).
       (2) Selection criteria.--The selection criteria shall 
     include the following:
       (A) The extent to which the project is nationally or 
     regionally significant, in terms of generating economic 
     benefits, supporting international commerce, or otherwise 
     enhancing the national transportation system.
       (B) The creditworthiness of the project, including a 
     determination by the Secretary that any financing for the 
     project has appropriate security features, such as a rate 
     covenant, to ensure repayment. The Secretary shall require 
     each project applicant to provide a preliminary rating 
     opinion letter from a nationally recognized bond rating 
     agency.
       (C) The extent to which assistance under this chapter would 
     foster innovative public-private partnerships and attract 
     private debt or equity investment.
       (D) The likelihood that assistance under this chapter would 
     enable the project to proceed at an earlier date than the 
     project would otherwise be able to proceed.
       (E) The extent to which the project uses new technologies, 
     including intelligent transportation systems, that enhance 
     the efficiency of the project.
       (F) The amount of budget authority required to fund the 
     Federal credit instrument made available under this chapter.
       (c) Federal Requirements.--The following provisions of law 
     shall apply to funds made available under this chapter and 
     projects assisted with the funds:
       (1) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.).
       (2) The National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (3) The Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

     SEC. 1315. SECURED LOANS.

       (a) In General.--
       (1) Agreements.--Subject to paragraphs (2) and (3), the 
     Secretary may enter into agreements with 1 or more obligors 
     to make secured loans, the proceeds of which shall be used--
       (A) to finance eligible project costs; or
       (B) to refinance interim construction financing of eligible 
     project costs;

     of any project selected under section 1314.
       (2) Limitation on refinancing of interim construction 
     financing.--A loan under paragraph (1) shall not refinance 
     interim construction financing under paragraph (1)(B) later 
     than 1 year after the date of substantial completion of the 
     project.
       (3) Authorization period.--The Secretary may enter into a 
     loan agreement during any of fiscal years 1998 through 2003.
       (b) Terms and Limitations.--
       (1) In general.--A secured loan under this section with 
     respect to a project shall be on such terms and conditions 
     and contain such covenants, representations, warranties, and 
     requirements (including requirements for audits) as the 
     Secretary determines appropriate.
       (2) Maximum amount.--The amount of the secured loan shall 
     not exceed 33 percent of the reasonably anticipated eligible 
     project costs.
       (3) Payment.--The secured loan--
       (A) shall be payable, in whole or in part, from revenues 
     generated by any rate covenant, coverage requirement, or 
     similar security feature supporting the project obligations 
     or from a dedicated revenue stream; and
       (B) may have a lien on revenues described in subparagraph 
     (A) subject to any lien securing project obligations.
       (4) Interest rate.--The interest rate on the secured loan 
     shall be equal to the yield on marketable United States 
     Treasury securities of a similar maturity to the maturity of 
     the secured loan on the date of execution of the loan 
     agreement.
       (5) Maturity date.--The final maturity date of the secured 
     loan shall be not later than 35 years after the date of 
     substantial completion of the project.
       (6) Nonsubordination.--The secured loan shall not be 
     subordinated to the claims of any holder of project 
     obligations in the event of bankruptcy, insolvency, or 
     liquidation of the obligor.
       (7) Fees.--The Secretary may establish fees at a level 
     sufficient to cover the costs to the Federal Government of 
     making a secured loan under this section.
       (c) Repayment.--
       (1) Schedule.--The Secretary shall establish a repayment 
     schedule for each secured loan under this section based on 
     the projected cash flow from project revenues and other 
     repayment sources.
       (2) Commencement.--Scheduled loan repayments of principal 
     or interest on a secured loan under this section shall 
     commence not later than 5 years after the date of substantial 
     completion of the project.
       (3) Sources of repayment funds.--The sources of funds for 
     scheduled loan repayments under this section shall include 
     tolls, user fees, or other dedicated revenue sources.
       (4) Deferred payments.--
       (A) Authorization.--If, at any time during the 10 years 
     after the date of substantial completion of the project, the 
     project is unable to generate sufficient revenues to pay 
     scheduled principal and interest on the secured loan, the 
     Secretary may, pursuant to established criteria for the 
     project agreed to by the entity undertaking the project and 
     the Secretary, allow the obligor to add unpaid principal and 
     interest to the outstanding balance of the secured loan.
       (B) Interest.--Any payment deferred under subparagraph (A) 
     shall--

[[Page S10683]]

       (i) continue to accrue interest in accordance with 
     subsection (b)(4) until fully repaid; and
       (ii) be scheduled to be amortized over the remaining term 
     of the loan beginning not later than 10 years after the date 
     of substantial completion of the project in accordance with 
     paragraph (1).
       (5) Prepayment.--
       (A) Use of excess revenues.--Any excess revenues that 
     remain after satisfying scheduled debt service requirements 
     on the project obligations and secured loan and all deposit 
     requirements under the terms of any trust agreement, bond 
     resolution, or similar agreement securing project obligations 
     may be applied annually to prepay the secured loan without 
     penalty.
       (B) Use of proceeds of refinancing.--The secured loan may 
     be prepaid at any time without penalty from the proceeds of 
     refinancing from non-Federal funding sources.
       (d) Sale of Secured Loans.--As soon as practicable after 
     substantial completion of a project, the Secretary shall sell 
     to another entity or reoffer into the capital markets a 
     secured loan for the project if the Secretary determines that 
     the sale or reoffering can be made on favorable terms.
       (e) Loan Guarantees.--
       (1) In general.--The Secretary may provide a loan guarantee 
     to a lender in lieu of making a secured loan if the Secretary 
     determines that the budgetary cost of the loan guarantee is 
     substantially the same as that of a secured loan.
       (2) Terms.--The terms of a guaranteed loan shall be 
     consistent with the terms set forth in this section for a 
     secured loan, except that the rate on the guaranteed loan and 
     any prepayment features shall be negotiated between the 
     obligor and the lender, with the consent of the Secretary.

     SEC. 1316. LINES OF CREDIT.

       (a) In General.--
       (1) Agreements.--The Secretary may enter into agreements to 
     make available lines of credit to 1 or more obligors in the 
     form of direct loans to be made by the Secretary at future 
     dates on the occurrence of certain events for any project 
     selected under section 1314.
       (2) Use of proceeds.--The proceeds of a line of credit made 
     available under this section shall be available to pay debt 
     service on project obligations issued to finance eligible 
     project costs, extraordinary repair and replacement costs, 
     operation and maintenance expenses, and costs associated with 
     unexpected Federal or State environmental restrictions.
       (b) Terms and Limitations.--
       (1) In general.--A line of credit under this section with 
     respect to a project shall be on such terms and conditions 
     and contain such covenants, representations, warranties, and 
     requirements (including requirements for audits) as the 
     Secretary determines appropriate.
       (2) Maximum amounts.--
       (A) Total amount.--The total amount of the line of credit 
     shall not exceed 33 percent of the reasonably anticipated 
     eligible project costs.
       (B) One-year draws.--The amount drawn in any 1 year shall 
     not exceed 20 percent of the total amount of the line of 
     credit.
       (3) Draws.--Any draw on the line of credit shall represent 
     a direct loan and shall be made only if net revenues from the 
     project (including capitalized interest, any debt service 
     reserve fund, and any other available reserve) are 
     insufficient to pay the costs specified in subsection (a)(2).
       (4) Interest rate.--The interest rate on a direct loan 
     resulting from a draw on the line of credit shall be not less 
     than the yield on 30-year marketable United States Treasury 
     securities as of the date on which the line of credit is 
     obligated.
       (5) Security.--The line of credit--
       (A) shall be made available only in connection with a 
     project obligation secured, in whole or in part, by a rate 
     covenant, coverage requirement, or similar security feature 
     or from a dedicated revenue stream; and
       (B) may have a lien on revenues described in subparagraph 
     (A) subject to any lien securing project obligations.
       (6) Period of availability.--The line of credit shall be 
     available during the period beginning on the date of 
     substantial completion of the project and ending not later 
     than 10 years after that date.
       (7) Rights of third party creditors.--
       (A) Against federal government.--A third party creditor of 
     the obligor shall not have any right against the Federal 
     Government with respect to any draw on the line of credit.
       (B) Assignment.--An obligor may assign the line of credit 
     to 1 or more lenders or to a trustee on the lenders' behalf.
       (8) Nonsubordination.--A direct loan under this section 
     shall not be subordinated to the claims of any holder of 
     project obligations in the event of bankruptcy, insolvency, 
     or liquidation of the obligor.
       (9) Fees.--The Secretary may establish fees at a level 
     sufficient to cover the costs to the Federal Government of 
     providing a line of credit under this section.
       (10) Relationship to other credit instruments.--A line of 
     credit under this section shall not be issued for a project 
     with respect to which another Federal credit instrument under 
     this chapter is made available.
       (c) Repayment.--
       (1) Schedule.--The Secretary shall establish a repayment 
     schedule for each direct loan under this section based on the 
     projected cash flow from project revenues and other repayment 
     sources.
       (2) Timing.--All scheduled repayments of principal or 
     interest on a direct loan under this section shall commence 
     not later than 5 years after the end of the period of 
     availability specified in subsection (b)(6) and be fully 
     repaid, with interest, by the date that is 25 years after the 
     end of the period of availability specified in subsection 
     (b)(6).
       (3) Sources of repayment funds.--The sources of funds for 
     scheduled loan repayments under this section shall include 
     tolls, user fees, or other dedicated revenue sources.

     SEC. 1317. PROJECT SERVICING.

       (a) Requirement.--The State in which a project that 
     receives financial assistance under this chapter is located 
     may identify a local servicer to assist the Secretary in 
     servicing the Federal credit instrument made available under 
     this chapter.
       (b) Agency; Fees.--If a State identifies a local servicer 
     under subsection (a), the local servicer--
       (1) shall act as the agent for the Secretary; and
       (2) may receive a servicing fee, subject to approval by the 
     Secretary.
       (c) Liability.--A local servicer identified under 
     subsection (a) shall not be liable for the obligations of the 
     obligor to the Secretary or any lender.
       (d) Assistance From Expert Firms.--The Secretary may retain 
     the services of expert firms in the field of municipal and 
     project finance to assist in the underwriting and servicing 
     of Federal credit instruments.

     SEC. 1318. OFFICE OF INFRASTRUCTURE FINANCE.

       (a) Duties of the Secretary.--Section 301 of title 49, 
     United States Code, is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(9) develop and coordinate Federal policy on financing 
     transportation infrastructure, including the provision of 
     direct Federal credit assistance and other techniques used to 
     leverage Federal transportation funds.''.
       (b) Office of Infrastructure Finance.--
       (1) In general.--Chapter 1 of title 49, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 113. Office of Infrastructure Finance

       ``(a) Establishment.--The Secretary of Transportation shall 
     establish within the Office of the Secretary an Office of 
     Infrastructure Finance.
       ``(b) Director.--The Office shall be headed by a Director 
     who shall be appointed by the Secretary not later than 180 
     days after the date of enactment of this section.
       ``(c) Functions.--The Director shall be responsible for--
       ``(1) carrying out the responsibilities of the Secretary 
     described in section 301(9);
       ``(2) carrying out research on financing transportation 
     infrastructure, including educational programs and other 
     initiatives to support Federal, State, and local government 
     efforts; and
       ``(3) providing technical assistance to Federal, State, and 
     local government agencies and officials to facilitate the 
     development and use of alternative techniques for financing 
     transportation infrastructure.''.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 49, United States Code, is amended by adding at the end 
     the following:

``113. Office of Infrastructure Finance.''.

     SEC. 1319. STATE AND LOCAL PERMITS.

       The provision of financial assistance under this chapter 
     with respect to a project shall not--
       (1) relieve any recipient of the assistance of any 
     obligation to obtain any required State or local permit or 
     approval with respect to the project;
       (2) limit the right of any unit of State or local 
     government to approve or regulate any rate of return on 
     private equity invested in the project; or
       (3) otherwise supersede any State or local law (including 
     any regulation) applicable to the construction or operation 
     of the project.

     SEC. 1320. REGULATIONS.

       The Secretary may issue such regulations as the Secretary 
     determines appropriate to carry out this chapter and the 
     amendments made by this chapter.

     SEC. 1321. FUNDING.

       (a) Authorization of Contract Authority.--
       (1) In general.--There shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this chapter--
       (A) $60,000,000 for fiscal year 1998;
       (B) $60,000,000 for fiscal year 1999;
       (C) $90,000,000 for fiscal year 2000;
       (D) $90,000,000 for fiscal year 2001;
       (E) $115,000,000 for fiscal year 2002; and
       (F) $115,000,000 for fiscal year 2003.
       (2) Administrative costs.--From funds made available under 
     paragraph (1), the Secretary may use, for the administration 
     of this chapter, not more than $2,000,000 for each of fiscal 
     years 1998 through 2003.
       (3) 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 chapter

[[Page S10684]]

     shall be deemed to be acceptance by the United States of a 
     contractual obligation to fund the Federal credit instrument.
       (2) Availability.--Amounts authorized under this section 
     for a fiscal year shall be available for obligation on 
     October 1 of the fiscal year.
       (c) Limitations on Credit Amounts.--For each of fiscal 
     years 1998 through 2003, principal amounts of Federal credit 
     instruments made available under this chapter shall be 
     limited to the amounts specified in the following table:

                                                         Maximum amount
Fiscal year:                                                 of credit:
  1998..................................................$1,200,000,000 
  1999..................................................$1,200,000,000 
  2000..................................................$1,800,000,000 
  2001..................................................$1,800,000,000 
  2002..................................................$2,000,000,000 
  2003..................................................$2,000,000,000.

       (d) Limitations on Obligations.--Notwithstanding any other 
     provision of law, the total amount of all obligations under 
     subsection (a) shall not exceed--
       (1) $60,000,000 for fiscal year 1998;
       (2) $60,000,000 for fiscal year 1999;
       (3) $90,000,000 for fiscal year 2000;
       (4) $90,000,000 for fiscal year 2001;
       (5) $115,000,000 for fiscal year 2002; and
       (6) $115,000,000 for fiscal year 2003.

     SEC. 1322. REPORT TO CONGRESS.

       Not later than 4 years after the date of enactment of this 
     Act, the Secretary shall submit to Congress a report 
     summarizing the financial performance of the projects that 
     are receiving, or have received, assistance under this 
     chapter, including a recommendation as to whether the 
     objectives of this chapter are best served--
       (1) by continuing the program under the authority of the 
     Secretary;
       (2) by establishing a Government corporation or Government-
     sponsored enterprise to administer the program; or
       (3) by phasing out the program and relying on the capital 
     markets to fund the types of infrastructure investments 
     assisted by this chapter without Federal participation.
                           Subtitle D--Safety

     SEC. 1401. OPERATION LIFESAVER.

       Section 104 of title 23, United States Code (as amended by 
     section 1102(a)), is amended--
       (1) in the matter preceding paragraph (1) of subsection 
     (b), by striking ``subsection (f)'' and inserting 
     ``subsections (d) and (f)''; and
       (2) in subsection (d), by striking paragraph (1) and 
     inserting the following:
       ``(1) Operation lifesaver.--Before making an apportionment 
     of funds under subsection (b)(3) for a fiscal year, the 
     Secretary shall set aside $500,000 of the funds authorized to 
     be appropriated for the surface transportation program for 
     the fiscal year to carry out a public information and 
     education program to help prevent and reduce motor vehicle 
     accidents, injuries, and fatalities and to improve driver 
     performance at railway-highway crossings.''.

     SEC. 1402. RAILWAY-HIGHWAY CROSSING HAZARD ELIMINATION IN 
                   HIGH SPEED RAIL CORRIDORS.

       Section 104(d) of title 23, United States Code, is amended 
     by striking paragraphs (2) and (3) and inserting the 
     following:
       ``(2) Railway-highway crossing hazard elimination in high 
     speed rail corridors.--
       ``(A) In general.--Before making an apportionment of funds 
     under subsection (b)(3) for a fiscal year, the Secretary 
     shall set aside $5,000,000 of the funds authorized to be 
     appropriated for the surface transportation program for the 
     fiscal year for elimination of hazards of railway-highway 
     crossings.
       ``(B) Eligible corridors.--Funds made available under 
     subparagraph (A) shall be expended for projects in--
       ``(i) 5 railway corridors selected by the Secretary in 
     accordance with this subsection (as in effect on the day 
     before the date of enactment of this clause); and
       ``(ii) 3 railway corridors selected by the Secretary in 
     accordance with subparagraphs (C) and (D).
       ``(C) Required inclusion of high speed rail lines.--A 
     corridor selected by the Secretary under subparagraph (B) 
     shall include rail lines where railroad speeds of 90 miles or 
     more per hour are occurring or can reasonably be expected to 
     occur in the future.
       ``(D) Considerations in corridor selection.--In selecting 
     corridors under subparagraph (B), the Secretary shall 
     consider--
       ``(i) projected rail ridership volume in each corridor;
       ``(ii) the percentage of each corridor over which a train 
     will be capable of operating at its maximum cruise speed 
     taking into account such factors as topography and other 
     traffic on the line;
       ``(iii) projected benefits to nonriders such as congestion 
     relief on other modes of transportation serving each corridor 
     (including congestion in heavily traveled air passenger 
     corridors);
       ``(iv) the amount of State and local financial support that 
     can reasonably be anticipated for the improvement of the line 
     and related facilities; and
       ``(v) the cooperation of the owner of the right-of-way that 
     can reasonably be expected in the operation of high speed 
     rail passenger service in each corridor.''.

     SEC. 1403. RAILWAY-HIGHWAY CROSSINGS.

       Section 130 of title 23, United States Code, is amended--
       (1) in the first sentence of subsection (a)--
       (A) by striking ``structures, and'' and inserting 
     ``structures,''; and
       (B) by inserting after ``grade crossings,'' the following: 
     ``trespassing countermeasures in the immediate vicinity of a 
     public railway-highway grade crossing, railway-highway 
     crossing safety education, enforcement of traffic laws 
     relating to railway-highway crossing safety, and projects at 
     privately owned railway-highway crossings if each such 
     project is publicly sponsored and the Secretary determines 
     that the project would serve a public benefit,'';
       (2) in subsection (d), by adding at the end the following: 
     ``In a manner established by the Secretary, each State shall 
     submit a report that describes completed railway-highway 
     crossing projects funded under this section to the Department 
     of Transportation for inclusion in the National Grade 
     Crossing Inventory prepared by the Department of 
     Transportation and the Association of American Railroads.''; 
     and
       (3) by striking subsection (e).

     SEC. 1404. HAZARD ELIMINATION PROGRAM.

       (a) In General.--Section 152 of title 23, United States 
     Code, is amended--
       (1) in subsection (a), by inserting ``, bicyclists,'' after 
     ``motorists'';
       (2) in subsection (b), by striking ``highway safety 
     improvement project'' and inserting ``safety improvement 
     project, including a project described in subsection (a)''; 
     and
       (3) in subsection (c), by striking ``on any public road 
     (other than a highway on the Interstate System).'' and 
     inserting the following: ``on--
       ``(1) any public road;
       ``(2) any public transportation vehicle or facility, any 
     publicly owned bicycle or pedestrian pathway or trail, or any 
     other facility that the Secretary determines to be 
     appropriate; or
       ``(3) any traffic calming measure.''.
       (b) Conforming Amendments.--
       (1) Section 101(a) of title 23, United States Code, is 
     amended--
       (A) in the undesignated paragraph defining ``highway safety 
     improvement project'', by striking ``highway safety'' and 
     inserting ``safety''; and
       (B) by moving that undesignated paragraph to appear before 
     the undesignated paragraph defining ``Secretary''.
       (2) Section 152 of title 23, United States Code, is amended 
     in subsections (f) and (g) by striking ``highway safety 
     improvement projects'' each place it appears and inserting 
     ``safety improvement projects''.

     SEC. 1405. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING 
                   WHILE INTOXICATED OR DRIVING UNDER THE 
                   INFLUENCE.

       (a) In General.--Chapter 1 of title 23, United States Code 
     (as amended by section 1301(a)), is amended by adding at the 
     end the following:

     ``Sec. 163. Minimum penalties for repeat offenders for 
       driving while intoxicated or driving under the influence

       ``(a) Definitions.--In this section:
       ``(1) Alcohol concentration.--The term `alcohol 
     concentration' means grams of alcohol per 100 milliliters of 
     blood or grams of alcohol per 210 liters of breath.
       ``(2) Driving while intoxicated; driving under the 
     influence.--The terms `driving while intoxicated' and 
     `driving under the influence' mean driving or being in actual 
     physical control of a motor vehicle while having an alcohol 
     concentration above the permitted limit as established by 
     each State.
       ``(3) License suspension.--The term `license suspension' 
     means the suspension of all driving privileges.
       ``(4) Motor vehicle.--The term `motor vehicle' means a 
     vehicle driven or drawn by mechanical power and manufactured 
     primarily for use on public highways, but does not include a 
     vehicle operated solely on a rail line or a commercial 
     vehicle.
       ``(5) Repeat intoxicated driver law.--The term `repeat 
     intoxicated driver law' means a State law that provides, as a 
     minimum penalty, that an individual convicted of a second or 
     subsequent offense for driving while intoxicated or driving 
     under the influence within 5 years after a conviction for 
     that offense whose alcohol concentration with respect to the 
     second or subsequent offense was determined on the basis of a 
     chemical test to be equal to or greater than 0.15 shall 
     receive--
       ``(A) a license suspension for not less than 1 year;
       ``(B) an assessment of the individual's degree of abuse of 
     alcohol and treatment as appropriate; and
       ``(C) either--
       ``(i) an assignment of 30 days of community service; or
       ``(ii) 5 days of imprisonment.
       ``(b) Transfer of Funds.--
       ``(1) Fiscal years 2001 and 2002.--
       ``(A) In general.--On October 1, 2000, and October 1, 2001, 
     if a State has not enacted or is not enforcing a repeat 
     intoxicated driver law, the Secretary shall transfer an 
     amount equal to 1\1/2\ percent of the funds apportioned to 
     the State on that date under paragraphs (1) and (3) of 
     section 104(b) to the apportionment of the State under 
     section 402 to be used for alcohol-impaired driving programs.
       ``(B) Derivation of amount to be transferred.--An amount 
     transferred under subparagraph (A) may be derived--
       ``(i) from the apportionment of the State under section 
     104(b)(1);
       ``(ii) from the apportionment of the State under section 
     104(b)(3); or
       ``(iii) partially from the apportionment of the State under 
     section 104(b)(1) and partially from the apportionment of the 
     State under section 104(b)(3).

[[Page S10685]]

       ``(2) Fiscal year 2003 and fiscal years thereafter.--On 
     October 1, 2002, and each October 1 thereafter, if a State 
     has not enacted or is not enforcing a repeat intoxicated 
     driver law, the Secretary shall transfer 3 percent of the 
     funds apportioned to the State on that date under each of 
     paragraphs (1) and (3) of section 104(b) to the apportionment 
     of the State under section 402 to be used for alcohol-
     impaired driving programs.
       ``(3) Federal share.--The Federal share of the cost of a 
     project carried out under section 402 with funds transferred 
     under paragraph (1) or (2) shall be 100 percent.
       ``(4) Transfer of obligation authority.--
       ``(A) In general.--If the Secretary transfers under this 
     subsection any funds to the apportionment of a State under 
     section 402 for a fiscal year, the Secretary shall transfer 
     an amount, determined under subparagraph (B), of obligation 
     authority distributed for the fiscal year to the State for 
     Federal-aid highways and highway safety construction programs 
     for carrying out projects under section 402.
       ``(B) Amount.--The amount of obligation authority referred 
     to in subparagraph (A) shall be determined by multiplying--
       ``(i) the amount of funds transferred under subparagraph 
     (A) to the apportionment of the State under section 402 for 
     the fiscal year; by
       ``(ii) the ratio that--

       ``(I) the amount of obligation authority distributed for 
     the fiscal year to the State for Federal-aid highways and 
     highway safety construction programs; bears to
       ``(II) the total of the sums apportioned to the State for 
     Federal-aid highways and highway safety construction programs 
     (excluding sums not subject to any obligation limitation) for 
     the fiscal year.

       ``(5) Limitation on applicability of highway safety 
     obligations.--Notwithstanding any other provision of law, no 
     limitation on the total of obligations for highway safety 
     programs under section 402 shall apply to funds transferred 
     under this subsection to the apportionment of a State under 
     that section.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code (as amended by section 1301(b)), 
     is amended by adding at the end the following:

``163. Minimum penalties for repeat offenders for driving while 
              intoxicated or driving under the influence.''.

     SEC. 1406. SAFETY INCENTIVE GRANTS FOR USE OF SEAT BELTS.

       (a) In General.--Chapter 1 of title 23, United States Code 
     (as amended by section 1405(a)), is amended by adding at the 
     end the following:

     ``Sec. 164. Safety incentive grants for use of seat belts

       ``(a) Definitions.--In this section:
       ``(1) Motor vehicle.--The term `motor vehicle' means a 
     vehicle driven or drawn by mechanical power and manufactured 
     primarily for use on public highways, but does not include a 
     vehicle operated solely on a rail line.
       ``(2) Multipurpose passenger motor vehicle.--The term 
     `multipurpose passenger motor vehicle' means a motor vehicle 
     with motive power (except a trailer), designed to carry not 
     more than 10 individuals, that is constructed on a truck 
     chassis or is constructed with special features for 
     occasional off-road operation.
       ``(3) National average seat belt use rate.--The term 
     `national average seat belt use rate' means, in the case of 
     each of calendar years 1995 through 2001, the national 
     average seat belt use rate for that year, as determined by 
     the Secretary.
       ``(4) Passenger car.--The term `passenger car' means a 
     motor vehicle with motive power (except a multipurpose 
     passenger motor vehicle, motorcycle, or trailer) designed to 
     carry not more than 10 individuals.
       ``(5) Passenger motor vehicle.--The term `passenger motor 
     vehicle' means a passenger car or a multipurpose passenger 
     motor vehicle.
       ``(6) Savings to the federal government.--The term `savings 
     to the Federal Government' means the amount of Federal budget 
     savings relating to Federal medical costs (including savings 
     under the medicare and medicaid programs under titles XVIII 
     and XIX of the Social Security Act (42 U.S.C. 1395 et seq.)), 
     as determined by the Secretary.
       ``(7) Seat belt.--The term `seat belt' means--
       ``(A) with respect to an open-body passenger motor vehicle, 
     including a convertible, an occupant restraint system 
     consisting of a lap belt or a lap belt and a detachable 
     shoulder belt; and
       ``(B) with respect to any other passenger motor vehicle, an 
     occupant restraint system consisting of integrated lap and 
     shoulder belts.
       ``(8) State seat belt use rate.--The term `State seat belt 
     use rate' means the rate of use of seat belts in passenger 
     motor vehicles in a State, as measured and submitted to the 
     Secretary--
       ``(A) for each of calendar years 1995 through 1997, by the 
     State, as adjusted by the Secretary to ensure national 
     consistency in methods of measurement (as determined by the 
     Secretary); and
       ``(B) for each of calendar years 1998 through 2001, by the 
     State in a manner consistent with the criteria established by 
     the Secretary under subsection (e).
       ``(b) Determinations by the Secretary.--Not later than 30 
     days after the date of enactment of this section, and not 
     later than September 1 of each calendar year thereafter 
     through September 1, 2002, the Secretary shall determine--
       ``(1)(A) which States had, for each of the previous 
     calendar years (referred to in this subsection as the 
     `previous calendar year') and the year preceding the previous 
     calendar year, a State seat belt use rate greater than the 
     national average seat belt use rate for that year; and
       ``(B) in the case of each State described in subparagraph 
     (A), the amount that is equal to the savings to the Federal 
     Government due to the amount by which the State seat belt use 
     rate for the previous calendar year exceeds the national 
     average seat belt use rate for that year; and
       ``(2) in the case of each State that is not a State 
     described in paragraph (1)(A)--
       ``(A) the base seat belt use rate of the State, which shall 
     be equal to the highest State seat belt use rate for the 
     State for any calendar year during the period of 1995 through 
     the calendar year preceding the previous calendar year; and
       ``(B) the amount that is equal to the savings to the 
     Federal Government due to any increase in the State seat belt 
     use rate for the previous calendar year over the base seat 
     belt use rate determined under subparagraph (A).
       ``(c) Allocations.--
       ``(1) States with greater than the national average seat 
     belt use rate.--Not later than 30 days after the date of 
     enactment of this section, and not later than each October 1 
     thereafter through October 1, 2002, the Secretary shall 
     allocate to each State described in subsection (b)(1)(A) an 
     amount equal to the amount determined for the State under 
     subsection (b)(1)(B).
       ``(2) Other states.--Not later than 30 days after the date 
     of enactment of this section, and not later than each October 
     1 thereafter through October 1, 2002, the Secretary shall 
     allocate to each State described in subsection (b)(2) an 
     amount equal to the amount determined for the State under 
     subsection (b)(2)(B).
       ``(d) Use of Funds.--For each fiscal year, each State that 
     is allocated an amount under this section shall use the 
     amount for projects eligible for assistance under this title.
       ``(e) Criteria.--Not later than 180 days after the date of 
     enactment of the Intermodal Surface Transportation Efficiency 
     Act of 1997, the Secretary shall establish criteria for the 
     measurement of State seat belt use rates by States to ensure 
     that the measurements are accurate and representative.
       ``(f) Funding.--
       ``(1) Authorization of contract authority.--There shall be 
     available from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out this section $60,000,000 for 
     fiscal year 1998, $70,000,000 for fiscal year 1999, 
     $80,000,000 for fiscal year 2000, $90,000,000 for fiscal year 
     2001, and $100,000,000 for each of fiscal years 2002 and 
     2003.
       ``(2) Proportionate adjustment.--If the total amounts to be 
     allocated under subsection (c) for any fiscal year would 
     exceed the amounts authorized for the fiscal year under 
     paragraph (1), the allocation to each State under subsection 
     (c) shall be reduced proportionately.
       ``(3) Use of unallocated funds.--To the extent that the 
     amounts made available for any fiscal year under paragraph 
     (1) exceed the total amounts to be allocated under subsection 
     (c) for the fiscal year, the excess amounts--
       ``(A) shall be apportioned in accordance with section 
     104(b)(3);
       ``(B) shall be considered to be sums made available for 
     expenditure on the surface transportation program, except 
     that the amounts shall not be subject to section 133(d); and
       ``(C) shall be available for any purpose eligible for 
     funding under section 133.
       ``(4) Administrative expenses.--Not more than 2 percent of 
     the funds made available to carry out this section may be 
     used to pay the necessary administrative expenses incurred in 
     carrying out this section.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code (as amended by section 1405(b)), 
     is amended by adding at the end the following:

``164. Safety incentive grants for use of seat belts.''.

     SEC. 1407. AUTOMATIC CRASH PROTECTION UNBELTED TESTING 
                   STANDARD.

       (a) In General.--
       (1) Testing with simultaneous use.--Beginning on the date 
     of enactment of this Act, for the purpose of certification 
     under section 30115 of title 49, United States Code, of 
     compliance with the motor vehicle safety standards under 
     section 30111 of that title, a manufacturer or distributor of 
     a motor vehicle shall be deemed to be in compliance with 
     applicable performance standards for occupant crash 
     protection if the motor vehicle meets the applicable 
     requirements for testing with the simultaneous use of both an 
     automatic restraint system and a manual seat belt.
       (2) Prohibition.--In no case shall a manufacturer or 
     distributor use, for the purpose of the certification 
     referred to in paragraph (1), testing that provides for the 
     use of an automatic restraint system without the use of a 
     manual seat belt.
       (b) Revision of Standards.--The Secretary shall issue such 
     revised standards under section 30111 of title 49, United 
     States Code, as are necessary to conform to subsection (a).

[[Page S10686]]

                        Subtitle E--Environment

     SEC. 1501. NATIONAL SCENIC BYWAYS PROGRAM.

       (a) In General.--Chapter 1 of title 23, United States Code 
     (as amended by section 1406(a)) is amended by adding at the 
     end the following:

     ``Sec. 165. National scenic byways program

       ``(a) Designation of Roads.--
       ``(1) In general.--The Secretary shall carry out a national 
     scenic byways program that recognizes roads having 
     outstanding scenic, historic, cultural, natural, 
     recreational, and archaeological qualities by designating the 
     roads as National Scenic Byways or All-American Roads.
       ``(2) Criteria.--The Secretary shall designate roads to be 
     recognized under the national scenic byways program in 
     accordance with criteria developed by the Secretary.
       ``(3) Nomination.--To be considered for the designation, a 
     road must be nominated by a State or a Federal land 
     management agency and must first be designated as a State 
     scenic byway or, in the case of a road on Federal land, as a 
     Federal land management agency byway.
       ``(b) Grants and Technical Assistance.--
       ``(1) In general.--The Secretary shall make grants and 
     provide technical assistance to States to--
       ``(A) implement projects on highways designated as National 
     Scenic Byways or All-American Roads, or as State scenic 
     byways; and
       ``(B) plan, design, and develop a State scenic byway 
     program.
       ``(2) Priorities.--In making grants, the Secretary shall 
     give priority to--
       ``(A) each eligible project that is associated with a 
     highway that has been designated as a National Scenic Byway 
     or All-American Road and that is consistent with the corridor 
     management plan for the byway;
       ``(B) each eligible project along a State-designated scenic 
     byway that is consistent with the corridor management plan 
     for the byway, or is intended to foster the development of 
     such a plan, and is carried out to make the byway eligible 
     for designation as a National Scenic Byway or All-American 
     Road; and
       ``(C) each eligible project that is associated with the 
     development of a State scenic byway program.
       ``(c) Eligible Projects.--The following are projects that 
     are eligible for Federal assistance under this section:
       ``(1) An activity related to the planning, design, or 
     development of a State scenic byway program.
       ``(2) Development and implementation of a corridor 
     management plan to maintain the scenic, historical, 
     recreational, cultural, natural, and archaeological 
     characteristics of a byway corridor while providing for 
     accommodation of increased tourism and development of related 
     amenities.
       ``(3) Safety improvements to a State scenic byway, National 
     Scenic Byway, or All-American Road to the extent that the 
     improvements are necessary to accommodate increased traffic 
     and changes in the types of vehicles using the highway as a 
     result of the designation as a State scenic byway, National 
     Scenic Byway, or All-American Road.
       ``(4) Construction along a scenic byway of a facility for 
     pedestrians and bicyclists, rest area, turnout, highway 
     shoulder improvement, passing lane, overlook, or interpretive 
     facility.
       ``(5) An improvement to a scenic byway that will enhance 
     access to an area for the purpose of recreation, including 
     water-related recreation.
       ``(6) Protection of scenic, historical, recreational, 
     cultural, natural, and archaeological resources in an area 
     adjacent to a scenic byway.
       ``(7) Development and provision of tourist information to 
     the public, including interpretive information about a scenic 
     byway.
       ``(8) Development and implementation of a scenic byways 
     marketing program.
       ``(d) Limitation.--The Secretary shall not make a grant 
     under this section for any project that would not protect the 
     scenic, historical, recreational, cultural, natural, and 
     archaeological integrity of a highway and adjacent areas.
       ``(e) Federal Share.--The Federal share of the cost of 
     carrying out a project under this section shall be 80 
     percent, except that, in the case of any scenic byways 
     project along a public road that provides access to or within 
     Federal or Indian land, a Federal land management agency may 
     use funds authorized for use by the agency as the non-Federal 
     share.
       ``(f) Authorization of Contract Authority.--There shall be 
     available from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out this section $17,000,000 for 
     fiscal year 1998, $17,000,000 for fiscal year 1999, 
     $19,000,000 for fiscal year 2000, $19,000,000 for fiscal year 
     2001, $21,000,000 for fiscal year 2002, and $23,000,000 for 
     fiscal year 2003.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code (as amended by section 1406(b)), 
     is amended by adding at the end the following:

``165. National scenic byways program.''.

     SEC. 1502. PUBLIC-PRIVATE PARTNERSHIPS.

       Section 149 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(e) Partnerships With Nongovernmental Entities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title and in accordance with this subsection, a 
     metropolitan planning organization, State transportation 
     department, or other project sponsor may enter into an 
     agreement with any public, private, or nonprofit entity to 
     cooperatively implement any project carried out under this 
     section.
       ``(2) Forms of participation by entities.--Participation by 
     an entity under paragraph (1) may consist of--
       ``(A) ownership or operation of any land, facility, 
     vehicle, or other physical asset associated with the project;
       ``(B) cost sharing of any project expense;
       ``(C) carrying out of administration, construction 
     management, project management, project operation, or any 
     other management or operational duty associated with the 
     project; and
       ``(D) any other form of participation approved by the 
     Secretary.
       ``(3) Allocation to entities.--A State may allocate funds 
     apportioned under section 104(b)(2) to an entity described in 
     paragraph (1).
       ``(4) Alternative fuel projects.--In the case of a project 
     that will provide for the use of alternative fuels by 
     privately owned vehicles or vehicle fleets, activities 
     eligible for funding under this subsection--
       ``(A) may include the costs of vehicle refueling 
     infrastructure and other capital investments associated with 
     the project; and
       ``(B) shall--
       ``(i) include only the incremental cost of an alternative 
     fueled vehicle compared to a conventionally fueled vehicle 
     that would otherwise be borne by a private party; and
       ``(ii) apply other governmental financial purchase 
     contributions in the calculation of net incremental cost.
       ``(5) Prohibition on federal participation with respect to 
     required activities.--A Federal participation payment under 
     this subsection may not be made to an entity to fund an 
     obligation imposed under the Clean Air Act (42 U.S.C. 7401 et 
     seq.) or any other Federal law.''.

     SEC. 1503. WETLAND RESTORATION PILOT PROGRAM.

       (a) Findings.--Congress finds that--
       (1) surface transportation has unintended but negative 
     consequences for wetlands and other water resources;
       (2) in almost every State, construction and other highway 
     activities have reduced or eliminated wetland functions and 
     values, such as wildlife habitat, ground water recharge, 
     flood control, and water quality benefits;
       (3) the United States has lost more than \1/2\ of the 
     estimated 220,000,000 acres of wetlands that existed during 
     colonial times; and
       (4) while the rate of human-induced destruction and 
     conversion of wetlands has slowed in recent years, the United 
     States has suffered unacceptable wetland losses as a result 
     of highway projects.
       (b) Establishment.--The Secretary shall establish a 
     national wetland restoration pilot program (referred to in 
     this section as the ``program'') to fund mitigation projects 
     to offset the degradation of wetlands, or the loss of 
     functions and values of the aquatic resource, resulting from 
     projects carried out before December 27, 1977, under title 
     23, United States Code (or similar projects as determined by 
     the Secretary), for which mitigation has not been performed.
       (c) Applications.--To be eligible for funding under the 
     program, a State shall submit an application to the Secretary 
     that includes--
       (1) a description of the wetland proposed to be restored by 
     a mitigation project described in subsection (b) (referred to 
     in this section as a ``wetland restoration project'') under 
     the program (including the size and quality of the wetland);
       (2) such information as is necessary to establish a nexus 
     between--
       (A) a project carried out under title 23, United States 
     Code (or a similar project as determined by the Secretary); 
     and
       (B) the wetland values and functions proposed to be 
     restored by the wetland restoration project;
       (3) a description of the benefits expected from the 
     proposed wetland restoration project (including improvement 
     of water quality, improvement of wildlife habitat, ground 
     water recharge, and flood control);
       (4) a description of the State's level of commitment to the 
     proposed wetland restoration project (including the monetary 
     commitment of the State and any development of a State or 
     regional conservation plan that includes the proposed wetland 
     restoration); and
       (5) the estimated total cost of the wetland restoration 
     project.
       (d) Selection of Wetland Restoration Projects.--
       (1) Interagency council.--In consultation with the 
     Secretary of the Army, the Secretary of the Interior, the 
     Secretary of Agriculture, and the Administrator of the 
     Environmental Protection Agency, the Secretary shall 
     establish an interagency advisory council to--
       (A) review the submitted applications that meet the 
     requirements of subsection (c); and
       (B) not later than 60 days after the application deadline, 
     select wetland restoration projects for funding under the 
     program.
       (2) Selection criteria for priority wetland restoration 
     projects.--In consultation with the Secretary of the Army, 
     the Secretary of the Interior, the Secretary of Agriculture, 
     and the Administrator of the

[[Page S10687]]

     Environmental Protection Agency, the Secretary shall give 
     priority in funding under this section to wetland restoration 
     projects that--
       (A) provide for long-term monitoring and maintenance of 
     wetland resources;
       (B) are managed by an entity, such as a nature conservancy, 
     with expertise in the long-term monitoring and protection of 
     wetland resources; and
       (C) have a high likelihood of success.
       (e) Reports.--Not later than April 1, 2000, and April 1, 
     2003, the Secretary shall submit a report to Congress on the 
     results of the program.
       (f) Authorization of Contract Authority.--
       (1) In general.--There shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this section $12,000,000 for fiscal year 1998, $13,000,000 
     for fiscal year 1999, $14,000,000 for fiscal year 2000, 
     $17,000,000 for fiscal year 2001, $20,000,000 for fiscal year 
     2002, and $24,000,000 for fiscal year 2003.
       (2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code.
                          Subtitle F--Planning

     SEC. 1601. METROPOLITAN PLANNING.

       (a) In General.--Section 134 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 134. Metropolitan planning

       ``(a) General Requirements.--
       ``(1) Findings.--Congress finds that it is in the national 
     interest to encourage and promote the safe and efficient 
     management, operation, and development of surface 
     transportation systems that will serve the mobility needs of 
     people and freight within and through urbanized areas, while 
     minimizing transportation-related fuel consumption and air 
     pollution.
       ``(2) Development of plans and programs.--To accomplish the 
     objective stated in paragraph (1), metropolitan planning 
     organizations designated under subsection (b), in cooperation 
     with the State and public transit operators, shall develop 
     transportation plans and programs for urbanized areas of the 
     State.
       ``(3) Contents.--The plans and programs for each 
     metropolitan 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 area 
     and as an integral part of an intermodal transportation 
     system for the State and the United States.
       ``(4) Process.--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.
       ``(b) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process required by this section, a metropolitan planning 
     organization shall be designated for each urbanized area with 
     a population of more than 50,000 individuals--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that together represent at 
     least 75 percent of the affected population (including the 
     central city or cities as defined by the Bureau of the 
     Census); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Redesignation.--A metropolitan planning organization 
     may be redesignated by agreement between the Governor and 
     units of general purpose local government that together 
     represent at least 75 percent of the affected population 
     (including the central city or cities as defined by the 
     Bureau of the Census) as appropriate to carry out this 
     section.
       ``(3) 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.
       ``(4) Structure.--Each policy board of a metropolitan 
     planning organization that serves an area designated as a 
     transportation management area, when designated or 
     redesignated under this subsection, shall consist of--
       ``(A) local elected officials;
       ``(B) officials of public agencies that administer or 
     operate major modes of transportation in the metropolitan 
     area (including all transportation agencies included in the 
     metropolitan planning organization as of June 1, 1991); and
       ``(C) appropriate State officials.
       ``(5) Other authority.--Nothing in this subsection 
     interferes with the authority, under any State law in effect 
     on December 18, 1991, of a public agency with multimodal 
     transportation responsibilities to--
       ``(A) develop plans and programs for adoption by a 
     metropolitan planning organization; or
       ``(B) develop long-range capital plans, coordinate transit 
     services and projects, and carry out other activities under 
     State law.
       ``(c) 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; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Bureau of the Census.
       ``(3) Existing metropolitan planning areas in 
     nonattainment.--Notwithstanding paragraph (2), in the case of 
     an 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 Intermodal 
     Surface Transportation Efficiency Act of 1997, shall be 
     retained, except that the boundaries may be adjusted by 
     agreement of the affected metropolitan planning organizations 
     and Governors in the manner described in subsection (b)(2).
       ``(4) New metropolitan planning areas in nonattainment.--In 
     the case of an urbanized area designated after the date of 
     enactment of the Intermodal Surface Transportation Efficiency 
     Act of 1997 as a nonattainment area for ozone or carbon 
     monoxide, the boundaries of the metropolitan planning area--
       ``(A) shall be established by agreement between the 
     appropriate units of general purpose local government 
     (including the central city) and the Governor;
       ``(B) shall encompass at least the urbanized area and the 
     contiguous area expected to become urbanized within a 20-year 
     forecast period;
       ``(C) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Bureau of the Census; and
       ``(D) may address any nonattainment area identified under 
     the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or 
     carbon monoxide.
       ``(d) 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.--The consent of Congress is 
     granted to any 2 or more States--
       ``(A) to enter into agreements or compacts, 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.
       ``(e) Coordination of Metropolitan Planning 
     Organizations.--If more than 1 metropolitan planning 
     organization has authority within a metropolitan planning 
     area or an area that is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act (42 
     U.S.C. 7401 et seq.), each such metropolitan planning 
     organization shall consult with the other metropolitan 
     planning organizations designated for the area and the State 
     in the development of plans and programs required by this 
     section.
       ``(f) Scope of Planning Process.--The metropolitan 
     transportation planning process for a metropolitan area under 
     this section shall consider the following:
       ``(1) Supporting the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency.
       ``(2) Increasing the safety and security of the 
     transportation system for motorized and nonmotorized users.
       ``(3) Increasing the accessibility and mobility options 
     available to people and for freight.
       ``(4) Protecting and enhancing the environment, promoting 
     energy conservation, and improving quality of life through 
     land use planning.
       ``(5) Enhancing the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight.
       ``(6) Promoting efficient system management and operation.
       ``(7) Emphasizing the preservation of the existing 
     transportation system.
       ``(g) Development of Long-Range Transportation Plan.--
       ``(1) In general.--
       ``(A) Development.--In accordance with this subsection, 
     each metropolitan planning organization shall develop, and 
     update periodically, according to a schedule that the 
     Secretary determines to be appropriate, a long-range 
     transportation plan for its metropolitan area.
       ``(B) Forecast period.--In developing long-range 
     transportation plans, the metropolitan planning process shall 
     address--
       ``(i) the considerations under subsection (f); and
       ``(ii) any State or local goals developed within the 
     cooperative metropolitan planning process;


[[Page S10688]]


     as they relate to a 20-year forecast period and to other 
     forecast periods as determined by the participants in the 
     planning process.
       ``(C) Funding estimates.--For the purpose of developing the 
     long-range transportation plan, the State shall consult with 
     the metropolitan planning organization and each public 
     transit agency in developing estimates of funds that are 
     reasonably expected to be available to support plan 
     implementation.
       ``(2) Long-range transportation plan.--A long-range 
     transportation plan under this subsection shall, at a 
     minimum, contain--
       ``(A) an identification of transportation facilities 
     (including major roadways and transit, multimodal, and 
     intermodal facilities) that should function as a future 
     integrated transportation system, giving emphasis to those 
     facilities that serve important national, regional, and 
     metropolitan transportation functions;
       ``(B) an identification of transportation strategies 
     necessary to--
       ``(i) ensure preservation, including requirements for 
     management, operation, modernization, and rehabilitation, of 
     the existing and future transportation system; and
       ``(ii) make the most efficient use of existing 
     transportation facilities to relieve congestion, to 
     efficiently serve the mobility needs of people and goods, and 
     to enhance access within the metropolitan planning area; and
       ``(C) a financial plan that demonstrates how the long-range 
     transportation plan can be implemented, indicates total 
     resources from public and private sources that are reasonably 
     expected to be available to carry out the plan (without any 
     requirement for indicating project-specific funding sources), 
     and recommends any additional financing strategies for needed 
     projects and programs.
       ``(3) Coordination with clean air act agencies.--In 
     metropolitan areas that are 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 long-range transportation 
     plan with the process for development of the transportation 
     control measures of the State implementation plan required by 
     that Act.
       ``(4) Participation by interested parties.--Before adopting 
     a long-range transportation plan, each metropolitan planning 
     organization shall provide citizens, affected public 
     agencies, representatives of transportation agency employees, 
     freight shippers, private providers of transportation, and 
     other interested parties with a reasonable opportunity to 
     comment on the long-range transportation plan.
       ``(5) Publication of long-range transportation plan.--Each 
     long-range transportation plan prepared by a metropolitan 
     planning organization shall be--
       ``(A) published or otherwise made readily available for 
     public review; and
       ``(B) submitted for information purposes to the Governor at 
     such times and in such manner as the Secretary shall 
     establish.
       ``(h) Metropolitan Transportation Improvement Program.--
       ``(1) Development.--
       ``(A) In general.--In cooperation with the State and any 
     affected public transit operator, the metropolitan planning 
     organization designated for a metropolitan area shall develop 
     a transportation improvement program for the area for which 
     the organization is designated.
       ``(B) Opportunity for comment.--In developing the program, 
     the metropolitan planning organization, in cooperation with 
     the State and any affected public transit operator, shall 
     provide citizens, affected public agencies, representatives 
     of transportation agency employees, other affected employee 
     representatives, freight shippers, private providers of 
     transportation, and other interested parties with a 
     reasonable opportunity to comment on the proposed program.
       ``(C) Funding estimates.--For the purpose of developing the 
     transportation improvement program, the metropolitan planning 
     organization, public transit agency, and State shall 
     cooperatively develop estimates of funds that are reasonably 
     expected to be available to support program implementation.
       ``(D) Updating and approval.--The program shall be updated 
     at least once every 2 years and shall be approved by the 
     metropolitan planning organization and the Governor.
       ``(2) Contents.--The transportation improvement program 
     shall include--
       ``(A) a list, in order of priority, of proposed federally 
     supported projects and strategies to be carried out within 
     each 3-year-period after the initial adoption of the 
     transportation improvement program; and
       ``(B) a financial plan that--
       ``(i) demonstrates how the transportation improvement 
     program can be implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be available to carry out the 
     program (without any requirement for indicating project-
     specific funding sources); and
       ``(iii) identifies innovative financing techniques to 
     finance projects, programs, and strategies (without any 
     requirement for indicating project-specific funding sources).
       ``(3) Included projects.--
       ``(A) Chapter 1 and chapter 53 projects.--A transportation 
     improvement program developed under this subsection for a 
     metropolitan area shall include the projects and strategies 
     within the area that are proposed for funding under chapter 1 
     of this title and chapter 53 of title 49.
       ``(B) Chapter 2 projects.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     this title shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of this title that are not determined to 
     be regionally significant shall be grouped in 1 line item 
     or identified individually in the transportation 
     improvement program.
       ``(C) Consistency with long-range transportation plan.--
     Each project shall be consistent with the long-range 
     transportation plan developed under subsection (g) for the 
     area.
       ``(D) Requirement of anticipated full funding.--The program 
     shall include a project, or an identified phase of a project, 
     only if full funding can reasonably be anticipated to be 
     available for the project within the time period contemplated 
     for completion of the project.
       ``(4) Notice and comment.--Before approving a 
     transportation improvement program, a metropolitan planning 
     organization shall, in cooperation with the State and any 
     affected public transit operator, provide citizens, affected 
     public agencies, representatives of transportation agency 
     employees, private providers of transportation, and other 
     interested parties with reasonable notice of and an 
     opportunity to comment on the proposed program.
       ``(5) Selection of projects.--
       ``(A) In general.--Except as otherwise provided in 
     subsection (i)(4) and in addition to the transportation 
     improvement program development required under paragraph (1), 
     the selection of federally funded projects for implementation 
     in metropolitan areas shall be carried out, from the approved 
     transportation improvement program--
       ``(i) by--

       ``(I) in the case of projects under chapter 1, the State; 
     and
       ``(II) in the case of projects under chapter 53 of title 
     49, the designated transit funding recipients; and

       ``(ii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved 
     transportation improvement program in place of another 
     project of higher priority in the program.
       ``(i) Transportation Management Areas.--
       ``(1) Designation.--
       ``(A) Required designations.--The Secretary shall designate 
     as a transportation management area each urbanized area with 
     a population of over 200,000 individuals.
       ``(B) Designations on request.--The Secretary shall 
     designate any additional area as a transportation management 
     area on the request of the Governor and the metropolitan 
     planning organization designated for the area.
       ``(2) Transportation plans and programs.--Within a 
     transportation management area, transportation plans and 
     programs shall be based on a continuing and comprehensive 
     transportation planning process carried out by the 
     metropolitan planning organization in cooperation with the 
     State and any affected public transit operator.
       ``(3) Congestion management system.--Within a 
     transportation management area, the transportation planning 
     process under this section shall include a congestion 
     management system that provides for effective management of 
     new and existing transportation facilities eligible for 
     funding under this title and chapter 53 of title 49 through 
     the use of travel demand reduction and operational management 
     strategies.
       ``(4) Selection of projects.--
       ``(A) In general.--In addition to the transportation 
     improvement program development required under subsection 
     (h)(1), all federally funded projects carried out within the 
     boundaries of a transportation management area under this 
     title (excluding projects carried out on the National Highway 
     System) or under chapter 53 of title 49 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 carried 
     out within the boundaries of a transportation management area 
     on the National Highway System 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 in each 
     transportation management area is being carried out in 
     accordance with applicable provisions of Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less often 
     than once every 3 years, that the requirements of this 
     paragraph are met with respect to the transportation 
     management area.
       ``(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 other applicable 
     requirements of Federal law; and

[[Page S10689]]

       ``(ii) there is a transportation improvement program for 
     the area that has been approved by the metropolitan planning 
     organization and the Governor.
       ``(C) Effect of failure to certify.--
       ``(i) Withholding of funds.--If a metropolitan planning 
     process is not certified, the Secretary may withhold up to 20 
     percent of the apportioned funds attributable to the 
     transportation management area under this title and chapter 
     53 of title 49.
       ``(ii) Restoration of withheld funds.--The withheld 
     apportionments shall be restored to the metropolitan area at 
     such time as the metropolitan planning organization is 
     certified by the Secretary.
       ``(iii) Feasibility of private enterprise participation.--
     The Secretary shall not withhold certification under this 
     paragraph based on the policies and criteria established by a 
     metropolitan planning organization or transit grant recipient 
     for determining the feasibility of private enterprise 
     participation in accordance with section 5306(a) of title 49.
       ``(j) Abbreviated Plans and Programs 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 metropolitan 
     transportation plan and program that the Secretary determines 
     is appropriate to achieve the purposes of this section, 
     taking into account the complexity of transportation problems 
     in the area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans or programs 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.).
       ``(k) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title or chapter 53 of title 49, in the case of a 
     transportation management area classified as nonattainment 
     for ozone or carbon monoxide under the Clean Air Act (42 
     U.S.C. 7401 et seq.), Federal funds may not be programmed in 
     the area for any highway project that will result in a 
     significant increase in carrying capacity for single occupant 
     vehicles unless the project results from an approved 
     congestion management system.
       ``(2) Applicability.--This subsection applies to a 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (c).
       ``(l) Limitation.--Nothing in this section confers on a 
     metropolitan planning organization the authority to impose 
     any legal requirement on any transportation facility, 
     provider, or project not eligible for assistance under this 
     title or chapter 53 of title 49.
       ``(m) Funding.--
       ``(1) In general.--Funds set aside under section 104(f) of 
     this title and section 5303 of title 49 shall be available to 
     carry out this section.
       ``(2) Unused funds.--Any funds that are not used to carry 
     out this section may be made available by the metropolitan 
     planning organization to the State to fund activities under 
     section 135.''.
       (b) Technical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 134 and inserting the following:

``134. Metropolitan planning.''.

     SEC. 1602. STATEWIDE PLANNING.

       Section 135 of title 23, United States Code, is amended to 
     read as follows:

     ``Sec. 135. Statewide planning

       ``(a) General Requirements.--
       ``(1) Findings.--It is in the national interest to 
     encourage and promote the safe and efficient management, 
     operation, and development of surface transportation systems 
     that will serve the mobility needs of people and freight 
     throughout each State.
       ``(2) Development of plans and programs.--Subject to 
     section 134 of this title and sections 5303 through 5305 of 
     title 49, each State shall develop transportation plans and 
     programs for all areas of the State.
       ``(3) Contents.--The plans and programs for each State 
     shall provide for the development and integrated management 
     and operation of transportation systems (including pedestrian 
     walkways and bicycle transportation facilities) that will 
     function as an intermodal State transportation system and an 
     integral part of the intermodal transportation system of the 
     United States.
       ``(4) 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.
       ``(b) Scope of Planning Process.--Each State shall carry 
     out a transportation planning process that shall consider the 
     following:
       ``(1) Supporting the economic vitality of the United 
     States, the States, and metropolitan areas, especially by 
     enabling global competitiveness, productivity, and 
     efficiency.
       ``(2) Increasing the safety and security of the 
     transportation system for motorized and nonmotorized users.
       ``(3) Increasing the accessibility and mobility options 
     available to people and for freight.
       ``(4) Protecting and enhancing the environment, promoting 
     energy conservation, and improving quality of life through 
     land use planning.
       ``(5) Enhancing the integration and connectivity of the 
     transportation system, across and between modes throughout 
     the State, for people and freight.
       ``(6) Promoting efficient system management and operation.
       ``(7) Emphasizing the preservation of the existing 
     transportation system.
       ``(c) Coordination With Metropolitan Planning; State 
     Implementation Plan.--In carrying out planning under this 
     section, a State shall--
       ``(1) coordinate the planning with the transportation 
     planning activities carried out under section 134 for 
     metropolitan areas of the State; and
       ``(2) carry out the responsibilities of the State for the 
     development of the transportation portion of the State air 
     quality implementation plan to the extent required by the 
     Clean Air Act (42 U.S.C. 7401 et seq.).
       ``(d) Additional Requirements.--In carrying out planning 
     under this section, each State shall, at a minimum, 
     consider--
       ``(1) with respect to nonmetropolitan areas, the concerns 
     of local elected officials representing units of general 
     purpose local government;
       ``(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 transportation plans, programs, and 
     planning activities with related planning activities being 
     carried out outside of metropolitan planning areas.
       ``(e) Long-Range Transportation Plan.--
       ``(1) Development.--Each State shall develop a long-range 
     transportation 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 areas.--With respect to each 
     metropolitan area in the State, the plan shall be developed 
     in cooperation with the metropolitan planning organization 
     designated for the metropolitan area under section 134 of 
     this title and section 5305 of title 49.
       ``(B) Nonmetropolitan areas.--With respect to each 
     nonmetropolitan area, the plan shall be developed in 
     consultation with local elected officials representing units 
     of general purpose local government.
       ``(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.
       ``(3) Participation by interested parties.--In developing 
     the plan, the State shall--
       ``(A) provide citizens, affected public agencies, 
     representatives of transportation agency employees, other 
     affected employee representatives, freight shippers, private 
     providers of transportation, and other interested parties 
     with a reasonable opportunity to comment on the proposed 
     plan; and
       ``(B) identify transportation strategies necessary to 
     efficiently serve the mobility needs of people.
       ``(f) State Transportation Improvement Program.--
       ``(1) Development.--
       ``(A) In general.--The State shall develop a transportation 
     improvement program for all areas of the State.
       ``(B) Consultation with governments.--
       ``(i) Metropolitan areas.--With respect to each 
     metropolitan area in the State, the program shall be 
     developed in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 134 of this title and section 5305 of title 49.
       ``(ii) Nonmetropolitan areas.--With respect to each 
     nonmetropolitan area in the State, the program shall be 
     developed in consultation with units of general purpose local 
     government.
       ``(iii) 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.
       ``(C) Participation by interested parties.--In developing 
     the program, the Governor shall provide citizens, affected 
     public agencies, representatives of transportation agency 
     employees, other affected employee representatives, freight 
     shippers, private providers of transportation, and other 
     interested parties with a reasonable opportunity to comment 
     on the proposed program.
       ``(2) Included projects.--
       ``(A) In general.--A transportation improvement program 
     developed under this subsection for a State shall include 
     federally supported surface transportation expenditures 
     within the boundaries of the State.
       ``(B) Chapter 2 projects.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 
     shall be identified individually.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 that are not determined to be regionally 
     significant shall be grouped in 1 line item or identified 
     individually.
       ``(C) Consistency with long-range transportation plan.--
     Each project shall--
       ``(i) be consistent with the long-range transportation plan 
     developed under this section for the State;

[[Page S10690]]

       ``(ii) be identical to the project as described in an 
     approved metropolitan transportation improvement program; and
       ``(iii) be 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.
       ``(D) Requirement of anticipated full funding.--
       ``(i) In general.--The program shall include a project, or 
     an identified phase of a project, only if full funding can 
     reasonably be anticipated to be available for the project 
     within the time period contemplated for completion of the 
     project.
       ``(ii) Limitation.--Clause (i) does not require the 
     indication of project-specific funding sources.
       ``(E) Priorities.--The program shall reflect the priorities 
     for programming and expenditures of funds, including 
     transportation enhancements, required by this title.
       ``(3) Project selection for areas of less than 50,000 
     population.--
       ``(A) In general.--Projects carried out in areas with 
     populations of less than 50,000 individuals (excluding 
     projects carried out on the National Highway System) shall be 
     selected, from the approved statewide transportation 
     improvement program, by the State in cooperation with the 
     affected local officials.
       ``(B) National highway system projects.--Projects carried 
     out in areas described in subparagraph (A) on the National 
     Highway System shall be selected, from the approved statewide 
     transportation improvement program, by the State in 
     consultation with the affected local officials.
       ``(4) Biennial review and approval.--A transportation 
     improvement program developed under this subsection shall be 
     reviewed and, on a finding that the planning process through 
     which the program was developed is consistent with this 
     section and section 134, approved not less frequently than 
     biennially by the Secretary.
       ``(5) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved 
     statewide transportation improvement program in place of 
     another project of higher priority in the program.
       ``(g) Funding.--Funds set aside under section 505 of this 
     title and section 5313(b) of title 49 shall be available to 
     carry out this section.
       ``(h) Continuation of Current Review Practice.--Since plans 
     and programs described in this section or section 134 are 
     subject to a reasonable opportunity for public comment, since 
     individual projects included in the plans and programs are 
     subject to review under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.), and since decisions by the 
     Secretary concerning plans and programs described in this 
     section have not been reviewed under that Act as of January 
     1, 1997, any decision by the Secretary concerning a plan or 
     program described in this section or section 134 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. 1603. ADVANCED TRAVEL FORECASTING PROCEDURES PROGRAM.

       (a) Establishment.--The Secretary shall establish an 
     advanced travel forecasting procedures program--
       (1) to provide for completion of the advanced 
     transportation model developed under the Transportation 
     Analysis Simulation System (referred to in this section as 
     ``TRANSIMS''); and
       (2) to provide support for early deployment of the advanced 
     transportation modeling computer software and graphics 
     package developed under TRANSIMS and the program established 
     under this section to States, local governments, and 
     metropolitan planning organizations with responsibility for 
     travel modeling.
       (b) Eligible Activities.--The Secretary shall use funds 
     made available under this section to--
       (1) provide funding for completion of core development of 
     the advanced transportation model;
       (2) develop user-friendly advanced transportation modeling 
     computer software and graphics packages;
       (3) provide training and technical assistance with respect 
     to the implementation and application of the advanced 
     transportation model to States, local governments, and 
     metropolitan planning organizations with responsibility for 
     travel modeling; and
       (4) allocate funds to not more than 12 entities described 
     in paragraph (3), representing a diversity of populations and 
     geographic regions, for a pilot program to enable 
     transportation management areas designated under section 
     134(i) of title 23, United States Code, to convert from the 
     use of travel forecasting procedures in use by the areas as 
     of the date of enactment of this Act to the use of the 
     advanced transportation model.
       (c) Authorization of Contract Authority.--
       (1) In general.--There shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this section $4,000,000 for fiscal year 1998, $3,000,000 for 
     fiscal year 1999, $6,500,000 for fiscal year 2000, $5,000,000 
     for fiscal year 2001, $4,000,000 for fiscal year 2002, and 
     $2,500,000 for fiscal year 2003.
       (2) Allocation of funds.--
       (A) Fiscal years 1998 and 1999.--For each of fiscal years 
     1998 and 1999, 100 percent of the funds made available under 
     paragraph (1) shall be allocated to activities in described 
     in paragraphs (1), (2), and (3) of subsection (b).
       (B) Fiscal years 2000 through 2003.--For each of fiscal 
     years 2000 through 2003, not more than 50 percent of the 
     funds made available under paragraph (1) may be allocated to 
     activities described in subsection (b)(4).
       (3) Contract authority.--Funds authorized under this 
     subsection 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) any activity described in paragraph (1), (2), or (3) of 
     subsection (b) shall not exceed 100 percent; and
       (B) any activity described in subsection (b)(4) shall not 
     exceed 80 percent.

     SEC. 1604. TRANSPORTATION AND COMMUNITY AND SYSTEM 
                   PRESERVATION PILOT PROGRAM.

       (a) Establishment.--In cooperation with appropriate State, 
     regional, and local governments, the Secretary shall 
     establish a comprehensive initiative to investigate and 
     address the relationships between transportation and 
     community and system preservation.
       (b) Research.--
       (1) In general.--In cooperation with appropriate Federal 
     agencies, State, regional, and local governments, and other 
     entities eligible for assistance under subsection (d), the 
     Secretary shall carry out a comprehensive research program to 
     investigate the relationships between transportation, 
     community preservation, and the environment.
       (2) Required elements.--The program shall provide for 
     monitoring and analysis of projects carried out with funds 
     made available to carry out subsections (c) and (d).
       (c) Planning.--
       (1) In general.--The Secretary shall allocate funds made 
     available to carry out this subsection to States, 
     metropolitan planning organizations, and local governments to 
     plan, develop, and implement strategies to integrate 
     transportation and community and system preservation plans 
     and practices.
       (2) Purposes.--The purposes of the allocations shall be--
       (A) to improve the efficiency of the transportation system;
       (B) to reduce the impacts of transportation on the 
     environment;
       (C) to reduce the need for costly future investments in 
     public infrastructure; and
       (D) to provide efficient access to jobs, services, and 
     centers of trade.
       (3) Criteria.--In allocating funds made available to carry 
     out this subsection, the Secretary shall give priority to 
     applicants that--
       (A) propose projects for funding that address the purposes 
     described in paragraph (2);
       (B) demonstrate a commitment to public involvement, 
     including involvement of nontraditional partners in the 
     project team; and
       (C) demonstrate a commitment of non-Federal resources to 
     the proposed projects.
       (d) 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 title 23 and chapter 53 of 
     title 49, United States Code; and
       (ii) are--

       (I) coordinated with adopted preservation or development 
     plans; or
       (II) intended to promote cost-effective and strategic 
     investments in transportation infrastructure that minimize 
     adverse impacts on the environment;

       (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; and
       (D) propose projects for funding that address the purposes 
     described in subsection (c)(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.

[[Page S10691]]

       (B) Types of projects.--The allocation of funds shall be 
     available for obligation for--
       (i) any project eligible for funding under title 23 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.

       (e) Authorization of Contract Authority.--
       (1) In general.--There shall be available from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this section $20,000,000 for each of fiscal years 1998 
     through 2003.
       (2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code.
                   Subtitle G--Technical Corrections

     SEC. 1701. FEDERAL-AID SYSTEMS.

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

     ``Sec. 103. Federal-aid systems

       ``(a) In General.--For the purposes of this title, the 
     Federal-aid systems are the Interstate System and the 
     National Highway System.
       ``(b) National Highway System.--
       ``(1) Description.--The National Highway System consists of 
     an interconnected system of major routes and connectors 
     that--
       ``(A) serve major population centers, international border 
     crossings, ports, airports, public transportation facilities, 
     and other intermodal transportation facilities and other 
     major travel destinations;
       ``(B) meet national defense requirements; and
       ``(C) serve interstate and interregional travel.
       ``(2) Components.--The National Highway System consists of 
     the following:
       ``(A) The Interstate System described in subsection (c).
       ``(B) Other urban and rural principal arterial routes.
       ``(C) Other connector highways (including toll facilities) 
     that provide motor vehicle access between arterial routes on 
     the National Highway System and a major intermodal 
     transportation facility.
       ``(D) A strategic highway network consisting of a network 
     of highways that are important to the United States strategic 
     defense policy and that provide defense access, continuity, 
     and emergency capabilities for the movement of personnel, 
     materials, and equipment in both peacetime and wartime. The 
     highways may be highways on or off the Interstate System and 
     shall be designated by the Secretary in consultation with 
     appropriate Federal agencies and the States.
       ``(E) Major strategic highway network connectors consisting 
     of highways that provide motor vehicle access between major 
     military installations and highways that are part of the 
     strategic highway network. The highways shall be designated 
     by the Secretary in consultation with appropriate Federal 
     agencies and the States.
       ``(3) Maximum mileage.--The mileage of highways on the 
     National Highway System shall not exceed 178,250 miles.
       ``(4) Modifications to nhs.--
       ``(A) In general.--The Secretary may make any modification, 
     including any modification consisting of a connector to a 
     major intermodal terminal, to the National Highway System 
     that is proposed by a State or that is proposed by a State 
     and revised by the Secretary if the Secretary determines that 
     the modification--
       ``(i) meets the criteria established for the National 
     Highway System under this title; and
       ``(ii) enhances the national transportation characteristics 
     of the National Highway System.
       ``(B) Cooperation.--
       ``(i) In general.--In proposing a modification under this 
     paragraph, a State shall cooperate with local and regional 
     officials.
       ``(ii) Urbanized areas.--In an urbanized area, the local 
     officials shall act through the metropolitan planning 
     organization designated for the area under section 134.
       ``(c) Interstate System.--
       ``(1) Description.--
       ``(A) In general.--The Dwight D. Eisenhower National System 
     of Interstate and Defense Highways within the United States 
     (including the District of Columbia and Puerto Rico), 
     consists of highways--
       ``(i) designed--

       ``(I) in accordance with the standards of section 109(b); 
     or
       ``(II) in the case of highways in Alaska and Puerto Rico, 
     in accordance with such geometric and construction standards 
     as are adequate for current and probable future traffic 
     demands and the needs of the locality of the highway; and

       ``(ii) located so as--

       ``(I) to connect by routes, as direct as practicable, the 
     principal metropolitan areas, cities, and industrial centers;
       ``(II) to serve the national defense; and
       ``(III) to the maximum extent practicable, to connect at 
     suitable border points with routes of continental importance 
     in Canada and Mexico.

       ``(B) Selection of routes.--To the maximum extent 
     practicable, each route of the Interstate System shall be 
     selected by joint action of the State transportation agencies 
     of the State in which the route is located and the adjoining 
     States, in cooperation with local and regional officials, and 
     subject to the approval of the Secretary.
       ``(2) Maximum mileage.--The mileage of highways on the 
     Interstate System shall not exceed 43,000 miles, exclusive of 
     designations under paragraph (4).
       ``(3) Modifications.--The Secretary may approve or require 
     modifications to the Interstate System in a manner consistent 
     with the policies and procedures established under this 
     subsection.
       ``(4) Interstate system designations.--
       ``(A) Additions.--If the Secretary determines that a 
     highway on the National Highway System meets all standards of 
     a highway on the Interstate System and that the highway is a 
     logical addition or connection to the Interstate System, the 
     Secretary may, upon the affirmative recommendation of the 
     State or States in which the highway is located, designate 
     the highway as a route on the Interstate System.
       ``(B) Designations as future interstate system routes.--
       ``(i) In general.--If the Secretary determines that a 
     highway on the National Highway System would be a logical 
     addition or connection to the Interstate System and would 
     qualify for designation as a route on the Interstate System 
     under subparagraph (A), the Secretary may, upon the 
     affirmative recommendation of the State or States in which 
     the highway is located, designate the highway as a future 
     Interstate System route.
       ``(ii) Written agreement of states.--A designation under 
     clause (i) shall be made only upon the written agreement of 
     the State or States described in that clause that the highway 
     will be constructed to meet all standards of a highway on the 
     Interstate System by the date that is 12 years after the date 
     of the agreement.
       ``(iii) Removal of designation.--

       ``(I) In general.--If the State or States described in 
     clause (i) have not substantially completed the construction 
     of a highway designated under this subparagraph within the 
     time provided for in the agreement between the Secretary and 
     the State or States under clause (ii), the Secretary shall 
     remove the designation of the highway as a future Interstate 
     System route.
       ``(II) Effect of removal.--Removal of the designation of a 
     highway under subclause (I) shall not preclude the Secretary 
     from designating the highway as a route on the Interstate 
     System under subparagraph (A) or under any other provision of 
     law providing for addition to the Interstate System.

       ``(iv) Prohibition on referral as interstate system 
     route.--No law, rule, regulation, map, document, or other 
     record of the United States, or of any State or political 
     subdivision of a State, shall refer to any highway designated 
     as a future Interstate System route under this subparagraph, 
     nor shall any such highway be signed or marked, as a highway 
     on the Interstate System until such time as the highway is 
     constructed to the geometric and construction standards for 
     the Interstate System and has been designated as a route 
     on the Interstate System.
       ``(C) Financial responsibility.--
       ``(i) In general.--Except as provided in clause (ii), the 
     designation of a highway under this paragraph shall create no 
     additional Federal financial responsibility with respect to 
     the highway.
       ``(ii) Certain highways.--Subject to section 119(b)(1)(B), 
     a State may use funds available to the State under paragraphs 
     (1) and (3) of section 104(b) for the resurfacing, 
     restoration, rehabilitation, and reconstruction of a 
     highway--

       ``(I) designated before March 9, 1984, as a route on the 
     Interstate System under subparagraph (A) or as a future 
     Interstate System route under subparagraph (B); or
       ``(II) designated under subparagraph (A) and located in 
     Alaska or Puerto Rico.

       ``(d) Transfer of Interstate Construction Funds.--
       ``(1) Interstate construction funds not in surplus.--
       ``(A) In general.--Upon application by a State and approval 
     by the Secretary, the Secretary may transfer to the 
     apportionment of the State under section 104(b)(1) any amount 
     of funds apportioned to the State under section 104(b)(5)(A) 
     (as in effect on the day before the date of enactment of the 
     Intermodal Surface Transportation Efficiency Act of 1997), if 
     the amount does not exceed the Federal share of the costs of 
     construction of segments of the Interstate System in the 
     State included in the most recent Interstate System cost 
     estimate.
       ``(B) Effect of transfer.--Upon transfer of an amount under 
     subparagraph (A), the construction on which the amount is 
     based, as included in the most recent Interstate System cost 
     estimate, shall be ineligible for funding under section 
     104(b)(5)(A) (as in effect on the day before the date of 
     enactment of the Intermodal Surface Transportation Efficiency 
     Act of 1997) or 104(k).
       ``(2) Surplus interstate construction funds.--Upon 
     application by a State and approval by the Secretary, the 
     Secretary may transfer to the apportionment of the State 
     under section 104(b)(1) any amount of surplus funds 
     apportioned to the State under section 104(b)(5)(A) (as in 
     effect on the day before the date of enactment of the 
     Intermodal Surface Transportation Efficiency Act of 1997), if 
     the State has fully financed all work eligible

[[Page S10692]]

     under the most recent Interstate System cost estimate.
       ``(3) Applicability of certain laws.--Funds transferred 
     under this subsection shall be subject to the laws (including 
     regulations, policies, and procedures) relating to the 
     apportionment to which the funds are transferred.
       ``(e) Unobligated Balances of Interstate Substitute 
     Funds.--Unobligated balances of funds apportioned to a State 
     under section 103(e)(4)(H) (as in effect on the day before 
     the date of enactment of the Intermodal Surface 
     Transportation Efficiency Act of 1997) shall be available for 
     obligation by the State under the law (including regulations, 
     policies, and procedures) relating to the obligation and 
     expenditure of the funds in effect on that date.''.
       (b) Conforming Amendments.--
       (1)(A) Section 101(a) of title 23, United States Code, is 
     amended in the undesignated paragraph defining ``Interstate 
     System'' by striking ``subsection (e) of section 103 of this 
     title'' and inserting ``section 103(c)''.
       (B) Section 104(f)(1) of title 23, United States Code, is 
     amended by striking ``, except that'' and all that follows 
     through ``programs''.
       (C) Section 115(a) of title 23, United States Code, is 
     amended--
       (i) in the subsection heading, by striking ``Substitute,''; 
     and
       (ii) in paragraph (1)(A)(i), by striking ``103(e)(4)(H),'';
       (D) Section 118 of title 23, United States Code (as amended 
     by section 1118(b)), is amended--
       (i) by striking subsection (d); and
       (ii) by redesignating subsections (e), (f), and (g) (as 
     added by section 1103(d)) as subsections (c), (d), and (e), 
     respectively.
       (E) Section 129(b) of title 23, United States Code, is 
     amended in the first sentence by striking ``which has been'' 
     and all that follows through ``and has not'' and inserting 
     ``which is a public road and has not''.
       (2)(A) Section 139 of title 23, United States Code, is 
     repealed.
       (B) The analysis for chapter 1 of title 23, United States 
     Code, is amended by striking the item relating to section 
     139.
       (C) Section 119(a) of title 23, United States Code, is 
     amended in the first sentence--
       (i) by striking ``sections 103 and 139(c) of this title'' 
     and inserting ``section 103(c)(1) and, in Alaska and Puerto 
     Rico, under section 103(c)(4)(A)''; and
       (ii) by striking ``section 139 (a) and (b) of this title'' 
     and inserting ``subparagraphs (A) and (B) of section 
     103(c)(4)''.
       (D) Section 127(f) of title 23, United States Code, is 
     amended by striking ``section 139(a)'' and inserting 
     ``section 103(c)(4)(A)''.
       (E) Section 1105(e)(5) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (109 Stat. 597) is 
     amended by striking subparagraph (B) and inserting the 
     following:
       ``(B) Treatment of segments.--Subject to subparagraph (C), 
     segments designated as parts of the Interstate System under 
     this paragraph shall be treated in the same manner as 
     segments designated under section 103(c)(4)(A) of title 23, 
     United States Code.''.

     SEC. 1702. MISCELLANEOUS TECHNICAL CORRECTIONS.

       (a) Definitions and Declaration of Policy.--
       (1) Creation of policy section.--Section 102 of title 23, 
     United States Code, is amended--
       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 102. Declaration of policy'';

       (B) by redesignating subsection (a) as subsection (c) and 
     moving that subsection to the end of section 146; and
       (C) by redesignating subsection (b) as subsection (f) and 
     moving that subsection to the end of section 118 (as amended 
     by section 1701(b)(1)(D)(ii)).
       (2) Transfer of policy provisions.--Section 101 of title 
     23, United States Code, is amended--
       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 101. Definitions'';

       (B) in subsection (a), by striking ``(a)'';
       (C) by striking subsection (b); and
       (D) by redesignating subsections (c) through (e) as 
     subsections (a) through (c), respectively, and moving those 
     subsections to section 102 (as amended by paragraph (1)).
       (3) Conforming amendments.--
       (A) The analysis for chapter 1 of title 23, United States 
     Code, is amended by striking the items relating to sections 
     101 and 102 and inserting the following:

``101. Definitions.
``102. Declaration of policy.''.
       (B) Section 47107(j)(1)(B) of title 49, United States Code, 
     is amended by striking ``section 101(a)'' and inserting 
     ``section 101''.
       (b) Advance Construction.--Section 115 of title 23, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) by striking ``Projects'' and all that follows through 
     ``When a State'' and inserting ``Projects.--When a State'';
       (B) by striking paragraphs (2) and (3); and
       (C) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively, and indenting 
     appropriately;
       (2) by striking subsection (c);
       (3) in subsection (d), by striking ``section 135(f)'' and 
     inserting ``section 135''; and
       (4) by redesignating subsection (d) as subsection (c).
       (c) Maintenance.--Section 116 of title 23, United States 
     Code, is amended--
       (1) in subsection (a), by striking the second sentence;
       (2) by striking subsection (b);
       (3) in subsection (c)--
       (A) in the first sentence, by striking ``he'' and inserting 
     ``the Secretary''; and
       (B) in the second sentence, by striking ``further 
     projects'' and inserting ``further expenditure of Federal-aid 
     highway program funds''; and
       (4) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (d) Interstate Maintenance Program.--Section 119(a) of 
     title 23, United States Code, is amended in the first 
     sentence by striking ``the date of enactment of this 
     sentence'' and inserting ``March 9, 1984''.
       (e) Advances to States.--Section 124 of title 23, United 
     States Code, is amended--
       (1) by striking ``(a)''; and
       (2) by striking subsection (b).
       (f) Diversion.--
       (1) In general.--Section 126 of title 23, United States 
     Code, is repealed.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 126.
       (g) Railway-Highway Crossings.--Section 130(f) of title 23, 
     United States Code, is amended by striking ``Apportionment'' 
     and all that follows through the first sentence and inserting 
     ``Federal Share.--''.
       (h) Surface Transportation Program.--Section 133(a) of 
     title 23, United States Code, is amended by striking 
     ``Establishment.--The Secretary shall establish'' and 
     inserting ``In General.--The Secretary shall carry out''.
       (i) Control of Junkyards.--Section 136 of title 23, United 
     States Code, is amended by striking subsection (m) and 
     inserting the following:
       ``(m) Primary System Defined.--For purposes of this 
     section, the term `primary system' means the Federal-aid 
     primary system in existence on June 1, 1991, and any highway 
     which is not on such system but which is on the National 
     Highway System.''.
       (j) 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''.
       (k) Nondiscrimination.--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 
     106(a),'';
       (B) by striking ``he'' each place it appears and inserting 
     ``the Secretary'';
       (C) in the second sentence, by striking ``He'' and 
     inserting ``The Secretary'';
       (D) in the third sentence, by striking ``In approving 
     programs for projects on any of the Federal-aid systems,'' 
     and inserting ``Before approving any project under section 
     106(a),''; and
       (E) in the last sentence, by striking ``him'' and inserting 
     ``the Secretary'';
       (2) by striking subsection (b);
       (3) in the subsection heading of subsection (d), by 
     striking ``and Contracting''; and
       (4) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (l) Priority Primary Routes.--
       (1) In general.--Section 147 of title 23, United States 
     Code, is repealed.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 147.
       (m) Development of a National Scenic and Recreational 
     Highway.--
       (1) In general.--Section 148 of title 23, United States 
     Code, is repealed.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 148.
       (n) Hazard Elimination Program.--Section 152(e) of title 
     23, United States Code, is amended by striking ``apportioned 
     to'' in the first sentence and all that follows through 
     ``shall be'' in the second sentence.
       (o) Access Highways to Public Recreation Areas on Certain 
     Lakes.--
       (1) In general.--Section 155 of title 23, United States 
     Code, is repealed.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 155.

     SEC. 1703. NONDISCRIMINATION.

       (a) In General.--Section 324 of title 23, United States 
     Code, is amended--
       (1) by inserting ``(d) Prohibition of Discrimination on the 
     Basis of Sex.--'' before ``No person''; and
       (2) by moving subsection (d) (as designated by paragraph 
     (1)) to the end of section 140 (as amended by section 
     1702(k)).
       (b) Conforming Amendments.--
       (1) Section 324 of title 23, United States Code, is 
     repealed.
       (2) The analysis for chapter 3 of title 23, United States 
     Code, is amended by striking the item relating to section 
     324.

     SEC. 1704. STATE TRANSPORTATION DEPARTMENT.

       (a) In General.--Section 302 of title 23, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``(a)'';
       (B) by striking the second sentence; and
       (C) by adding at the end the following: ``Compliance with 
     this section shall have no effect on the eligibility of 
     costs.''; and
       (2) by striking subsection (b).
       (b) Conforming Amendments.--

[[Page S10693]]

       (1) Title 23, United States Code, is amended--
       (A) by striking ``State highway department'' each place it 
     appears and inserting ``State transportation department''; 
     and
       (B) by striking ``State highway departments'' each place it 
     appears and inserting ``State transportation departments''.
       (2) The analysis for chapter 3 of title 23, United States 
     Code, is amended in the item relating to section 302 by 
     striking ``highway'' and inserting ``transportation''.
       (3) Section 302 of title 23, United States Code, is amended 
     in the section heading by striking ``highway'' and inserting 
     ``transportation''.
       (4) Section 410(h)(5) of title 23, United States Code, is 
     amended in the paragraph heading by striking ``highway'' and 
     inserting ``transportation''.
       (5) Section 201(b) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App.) is amended in the second 
     sentence by striking ``State highway department'' and 
     inserting ``State transportation department''.
       (6) Section 138(c) of the Surface Transportation Assistance 
     Act of 1978 (40 U.S.C. App. note to section 201 of the 
     Appalachian Regional Development Act of 1965; Public Law 95-
     599) is amended in the first sentence by striking ``State 
     highway department'' and inserting ``State transportation 
     department''.
                  Subtitle H--Miscellaneous Provisions

     SEC. 1801. DESIGNATION OF PORTION OF STATE ROUTE 17 IN NEW 
                   YORK AND PENNSYLVANIA AS INTERSTATE ROUTE 86.

       (a) In General.--Subject to subsection (b)(2), 
     notwithstanding section 103(c), the portion of State Route 17 
     located between the junction of State Route 17 and Interstate 
     Route 87 in Harriman, New York, and the junction of State 
     Route 17 and Interstate Route 90 near Erie, Pennsylvania, is 
     designated as Interstate Route 86.
       (b) Substandard Features.--
       (1) Upgrading.--Each segment of State Route 17 described in 
     subsection (a) that does not substantially meet the 
     Interstate System design standards under section 109(b) of 
     title 23, United States Code, in effect on the date of 
     enactment of this Act shall be upgraded in accordance with 
     plans and schedules developed by the applicable State.
       (2) Designation.--Each segment of State Route 17 that on 
     the date of enactment of this Act is not at least 4 lanes 
     wide, separated by a median, access-controlled, and grade-
     separated shall--
       (A) be designated as a future Interstate System route; and
       (B) become part of Interstate Route 86 at such time as the 
     Secretary determines that the segment substantially meets the 
     Interstate System design standards described in paragraph 
     (1).
       (c) Treatment of Route.--
       (1) Mileage limitation.--The mileage of Interstate Route 86 
     designated under subsection (a) shall not be charged against 
     the limitation established by section 103(c)(2) of title 23, 
     United States Code.
       (2) Federal financial responsibility.--
       (A) In general.--Subject to subparagraph (B), the 
     designation of Interstate Route 86 under subsection (a) shall 
     not create increased Federal financial responsibility with 
     respect to the designated Route.
       (B) Use of certain funds.--A State may use funds available 
     to the State under paragraphs (1) and (3) of section 104(b) 
     of title 23, United States Code, to eliminate substandard 
     features of, and to resurface, restore, rehabilitate, or 
     reconstruct, any portion of the designated Route.
                   TITLE II--RESEARCH AND TECHNOLOGY
                   Subtitle A--Research and Training

     SEC. 2001. STRATEGIC RESEARCH PLAN.

       Subtitle III of title 49, United States Code, is amended--
       (1) in the table of chapters, by inserting after the item 
     relating to chapter 51 the following:

RESEARCH AND DEVELOPMENT........................................5201'';
     and
       (2) by inserting after chapter 51 the following:

                 ``CHAPTER 52--RESEARCH AND DEVELOPMENT

``Sec.
``5201. Definitions.

         ``SUBCHAPTER I--GENERAL AND ADMINISTRATIVE PROVISIONS

``5211. Transactional authority.

                  ``SUBCHAPTER II--STRATEGIC PLANNING

``5221. Strategic planning.
``5222. Authorization of contract authority.

 ``SUBCHAPTER III--MULTIMODAL TRANSPORTATION RESEARCH AND DEVELOPMENT 
                                PROGRAM

``5231. Multimodal Transportation Research and Development Program.
``5232. Authorization of contract authority.

      ``SUBCHAPTER IV--NATIONAL UNIVERSITY TRANSPORTATION CENTERS

``5241. National university transportation centers.

     ``Sec. 5201. Definitions

       ``In this chapter:
       ``(1) Department.--The term `Department' means the 
     Department of Transportation.
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.

         ``SUBCHAPTER I--GENERAL AND ADMINISTRATIVE PROVISIONS

     ``Sec. 5211. Transactional authority

       ``To further the objectives of this chapter, the Secretary 
     may make grants to, and enter into contracts, cooperative 
     agreements, and other transactions with--
       ``(1) any person or any agency or instrumentality of the 
     United States;
       ``(2) any unit of State or local government;
       ``(3) any educational institution; and
       ``(4) any other entity.

                  ``SUBCHAPTER II--STRATEGIC PLANNING

     ``Sec. 5221. Strategic planning

       ``(a) Authority.--The Secretary shall establish a strategic 
     planning process to--
       ``(1) determine national transportation research, 
     development, and technology deployment priorities, 
     strategies, and milestones over the next 5 years;
       ``(2) coordinate Federal transportation research, 
     development, and technology deployment activities; and
       ``(3) measure the impact of the research, development, and 
     technology investments described in paragraph (2) on the 
     performance of the transportation system of the United 
     States.
       ``(b) Criteria.--In developing strategic plans for 
     intermodal, multimodal, and mode-specific research, 
     development, and technology deployment, the Secretary shall 
     consider the need to--
       ``(1) coordinate and integrate Federal, regional, State, 
     and metropolitan planning research, development, and 
     technology activities in urban and rural areas;
       ``(2) promote standards that facilitate a seamless and 
     interoperable transportation system;
       ``(3) encourage innovation;
       ``(4) identify and facilitate initiatives and partnerships 
     to deploy technology with the potential for improving 
     transportation systems during the next 5-year and 10-year 
     periods;
       ``(5) identify core research to support the long-term 
     transportation technology and system needs of urban and rural 
     areas of the United States, including safety;
       ``(6) ensure the ability of the United States to compete on 
     a global basis; and
       ``(7) provide a means of assessing the impact of Federal 
     research and technology investments on the performance of the 
     transportation system of the United States.
       ``(c) Implementation.--
       ``(1) In general.--In carrying out subsection (a), the 
     Secretary shall adopt such policies and procedures as are 
     appropriate--
       ``(A) to provide for integrated planning, coordination, and 
     consultation among the Administrators of the operating 
     administrations of the Department and other Federal officials 
     with responsibility for research, development, and technology 
     transfer important to national transportation needs;
       ``(B) to promote the exchange of information on 
     transportation-related research and development activities 
     among the operating elements of the Department, other Federal 
     departments and agencies, State and local governments, 
     colleges and universities, industry, and other private and 
     public sector organizations engaged in the activities;
       ``(C) to ensure that the research and development programs 
     of the Department do not duplicate other Federal and, to the 
     maximum extent practicable, private sector research and 
     development programs; and
       ``(D) to ensure that the research and development 
     activities of the Department--
       ``(i) make appropriate use of the talents, skills, and 
     abilities at the Federal laboratories; and
       ``(ii) leverage, to the maximum extent practicable, the 
     research, development, and technology transfer capabilities 
     of institutions of higher education and private industry.
       ``(2) Consultation.--The procedures and policies adopted 
     under paragraph (1) shall include consultation with State 
     officials and members of the private sector.
       ``(d) Reports.--
       ``(1) In general.--Concurrent with the submission to 
     Congress of the budget of the President 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 on the strategic plans, goals, and 
     milestones developed under subsections (a) and (b) to help 
     guide research, development, and technology transfer 
     activities during the 5-year period beginning on the date of 
     the report.
       ``(2) Comparison to previous report.--The report shall 
     include a delineation of the progress made with respect to 
     each of the plans, goals, and milestones specified in the 
     previous report.
       ``(3) Prohibition on obligation for failure to submit 
     report.--Beginning on the date of the submission to Congress 
     of the budget of the President for fiscal year 2000, and on 
     the date of the submission for each fiscal year thereafter, 
     none of the funds made available under this chapter or 
     chapter 5 of title 23 may be obligated until the report 
     required under paragraph (1) for that fiscal year is 
     submitted.

     ``Sec. 5222. Authorization of contract authority

       ``(a) In General.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this subchapter $1,500,000 for each of fiscal years 
     1998 through 2003.
       ``(b) Contract Authority.--Funds authorized under this 
     section shall be available for

[[Page S10694]]

     obligation in the same manner as if the funds were 
     apportioned under chapter 1 of title 23, except that--
       ``(1) any Federal share of the cost of an activity under 
     this subchapter shall be determined in accordance with this 
     subchapter; and
       ``(2) the funds shall remain available for obligation for a 
     period of 2 years after the last day of the fiscal year for 
     which the funds are authorized.
       ``(c) Use of Unallocated Funds.--To the extent that the 
     amounts made available for any fiscal year under subsection 
     (a) exceed the amounts used to carry out section 5221 for the 
     fiscal year, the excess amounts--
       ``(1) shall be apportioned in accordance with section 
     104(b)(3) of title 23;
       ``(2) shall be considered to be sums made available for 
     expenditure on the surface transportation program, except 
     that the amounts shall not be subject to section 133(d) of 
     that title; and
       ``(3) shall be available for any purpose eligible for 
     funding under section 133 of that title.''.

     SEC. 2002. MULTIMODAL TRANSPORTATION RESEARCH AND DEVELOPMENT 
                   PROGRAM.

       Chapter 52 of title 49, United States Code (as added by 
     section 2001), is amended by adding at the end the following:

 ``SUBCHAPTER III--MULTIMODAL TRANSPORTATION RESEARCH AND DEVELOPMENT 
                                PROGRAM

     ``Sec. 5231. Multimodal Transportation Research and 
       Development Program

       ``(a) Establishment.--The Secretary shall establish a 
     program to be known as the `Multimodal Transportation 
     Research and Development Program'.
       ``(b) Purposes.--The purposes of the Multimodal 
     Transportation Research and Development Program are to--
       ``(1) enhance the capabilities of Federal agencies to meet 
     national transportation needs, as defined by the missions of 
     the agencies, through support for long-term and applied 
     research and development that would benefit the various modes 
     of transportation, including research and development in 
     safety, security, mobility, energy and the environment, 
     information and physical infrastructure, and industrial 
     design;
       ``(2) identify and apply innovative research performed by 
     the Federal Government, academia, and the private sector to 
     the intermodal and multimodal transportation research, 
     development, and deployment needs of the Department and the 
     transportation enterprise of the United States;
       ``(3) identify and leverage research, technologies, and 
     other information developed by the Federal Government for 
     national defense and nondefense purposes for the benefit of 
     the public, commercial, and defense transportation sectors; 
     and
       ``(4) share information and analytical and research 
     capabilities among the Federal Government, State and local 
     governments, colleges and universities, and private 
     organizations to advance their ability to meet their 
     transportation research, development, and deployment needs.
       ``(c) Process for Consultation.--To advise the Secretary in 
     establishing priorities within the Program, the Secretary 
     shall establish a process for consultation among the 
     Administrators of the operating administrations of the 
     Department and other Federal officials with responsibility 
     for research.

     ``Sec. 5232. Authorization of contract authority

       ``(a) In General.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this subchapter $2,500,000 for each of fiscal years 
     1998 through 2003.
       ``(b) Contract Authority.--Funds authorized under this 
     section shall be available for obligation in the same manner 
     as if the funds were apportioned under chapter 1 of title 23, 
     except that--
       ``(1) any Federal share of the cost of an activity under 
     this subchapter shall be determined in accordance with this 
     subchapter; and
       ``(2) the funds shall remain available for obligation for a 
     period of 2 years after the last day of the fiscal year for 
     which the funds are authorized.''.

     SEC. 2003. NATIONAL UNIVERSITY TRANSPORTATION CENTERS.

       (a) In General.--Chapter 52 of title 49, United States Code 
     (as amended by section 2002), is amended by adding at the end 
     the following:

      ``SUBCHAPTER IV--NATIONAL UNIVERSITY TRANSPORTATION CENTERS

     ``Sec. 5241. National university transportation centers

       ``(a) In General.--The Secretary shall make grants to, or 
     enter into contracts with, the nonprofit institutions of 
     higher learning selected under section 5317 (as in effect on 
     the day before the date of enactment of this section)--
       ``(1) to operate 1 university transportation center in each 
     of the 10 Federal administrative regions that comprise the 
     Standard Federal Regional Boundary System; and
       ``(2) to continue operation of university transportation 
     centers at the Mack-Blackwell National Rural Transportation 
     Study Center, the National Center for Transportation and 
     Industrial Productivity, the Institute for Surface 
     Transportation Policy Studies, the Urban Transit Institute at 
     the University of South Florida, the National Center for 
     Advanced Transportation Technology, and the University of 
     Alabama Transportation Research Center.
       ``(b) Additional Centers.--
       ``(1) In general.--The Secretary may make grants to 
     nonprofit institutions of higher learning to establish and 
     operate not more than 4 additional university transportation 
     centers to address--
       ``(A) transportation management, research, and development, 
     with special attention to increasing the number of highly 
     skilled minority individuals and women entering the 
     transportation workforce;
       ``(B) transportation and industrial productivity;
       ``(C) rural transportation;
       ``(D) advanced transportation technology;
       ``(E) international transportation policy studies;
       ``(F) transportation infrastructure technology;
       ``(G) urban transportation research;
       ``(H) transportation and the environment;
       ``(I) surface transportation safety; or
       ``(J) infrastructure finance studies.
       ``(2) Selection criteria.--
       ``(A) Application.--A nonprofit institution of higher 
     learning that desires to receive a grant under paragraph (1) 
     shall submit an application to the Secretary in such manner 
     and containing such information as the Secretary may require.
       ``(B) Selection of recipients.--The Secretary shall select 
     each grant recipient under paragraph (1) on the basis of--
       ``(i) the demonstrated research and extension resources 
     available to the recipient to carry out this section;
       ``(ii) the capability of the recipient to provide 
     leadership in making national and regional contributions to 
     the solution of immediate and long-term transportation 
     problems;
       ``(iii) the establishment by the recipient of a surface 
     transportation program that encompasses several modes of 
     transportation;
       ``(iv) the demonstrated ability of the recipient to 
     disseminate results of transportation research and education 
     programs through a statewide or regionwide continuing 
     education program;
       ``(v) the strategic plan that the recipient proposes to 
     carry out using the grant funds; and
       ``(vi) the extent to which private funds have been 
     committed to a university and public-private partnerships 
     established to fulfill the objectives specified in paragraph 
     (1).
       ``(c) Objectives.--Each university transportation center 
     shall use grant funds under subsection (a) or (b) to carry 
     out--
       ``(1) multimodal basic and applied research, the products 
     of which are judged by peers or other experts in the field to 
     advance the body of knowledge in transportation;
       ``(2) an education program that includes multidisciplinary 
     course work and participation in research; and
       ``(3) an ongoing program of technology transfer that makes 
     research results available to potential users in a form that 
     can be readily implemented, used, or otherwise applied.
       ``(d) Maintenance of Effort.--Before making a grant under 
     subsection (a) or (b), the Secretary shall require the grant 
     recipient to enter into an agreement with the Secretary to 
     ensure that the recipient will maintain, during the period of 
     the grant, a level of total expenditures from all other 
     sources for establishing and operating a university 
     transportation center and carrying out related research 
     activities that is at least equal to the average level of 
     those expenditures in the 2 fiscal years of the recipient 
     prior to the award of a grant under subsection (a) or (b).
       ``(e) Additional Grants and Contracts.--
       ``(1) Grants or contracts.--In addition to grants under 
     subsection (a) or (b), the Secretary may make grants to, or 
     enter into contracts with, university transportation centers 
     without the need for a competitive process.
       ``(2) Use of grants or contracts.--A noncompetitive grant 
     or contract under paragraph (1) shall be used for 
     transportation research, development, education, or training 
     consistent with the strategic plan approved as part of the 
     selection process for the center.
       ``(f) Federal Share.--The Federal share of the cost of 
     establishing and operating a university transportation center 
     and carrying out related research activities under this 
     section shall be not more than 50 percent.
       ``(g) Program Coordination.--
       ``(1) In general.--The Secretary shall--
       ``(A) coordinate research, education, training, and 
     technology transfer activities carried out by grant 
     recipients under this section;
       ``(B) disseminate the results of the research; and
       ``(C) establish and operate a clearinghouse for 
     disseminating the results of the research.
       ``(2) Review and evaluation.--
       ``(A) In general.--Not less often than annually, the 
     Secretary shall review and evaluate programs carried out by 
     grant recipients under this section.
       ``(B) Notification of deficiencies.--In carrying out 
     subparagraph (A), if the Secretary determines that a 
     university transportation center is deficient in meeting the 
     objectives of this section, the Secretary shall notify the 
     grant recipient operating the center of each deficiency and 
     provide specific recommendations of measures that should be 
     taken to address the deficiency.
       ``(C) Disqualification.--If, after the end of the 180-day 
     period that begins on the date of notification to a grant 
     recipient under subparagraph (B) with respect to a center, 
     the

[[Page S10695]]

     Secretary determines that the recipient has not corrected 
     each deficiency identified under subparagraph (B), the 
     Secretary may, after notifying the Committee on Environment 
     and Public Works of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives of the determination--
       ``(i) disqualify the university transportation center from 
     further participation under this section; and
       ``(ii) make a grant for the establishment of a new 
     university transportation center, in lieu of the disqualified 
     center, under subsection (a) or (b), as applicable.
       ``(3) Funding.--The Secretary may use not more than 1 
     percent of Federal funds made available under this section to 
     carry out this subsection.
       ``(h) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $12,000,000 for each of fiscal years 
     1998 through 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be made available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, except that the Federal share of the cost of a 
     project under this section shall be determined in accordance 
     with this section.
       ``(3) Technology transfer activities.--For each fiscal 
     year, not less than 5 percent of the amounts made available 
     to carry out this section shall be available to carry out 
     technology transfer activities.
       ``(i) Limitation on Availability of Funds.--Funds 
     authorized under this section shall remain available for 
     obligation for a period of 2 years after the last day of the 
     fiscal year for which the funds are authorized.''.
       (b) Conforming Amendments.--
       (1) Sections 5316 and 5317 of title 49, United States Code, 
     are repealed.
       (2) The analysis for chapter 53 of title 49, United States 
     Code, is amended by striking the items relating to sections 
     5316 and 5317.

     SEC. 2004. BUREAU OF TRANSPORTATION STATISTICS.

       (a) In General.--Section 111 of title 49, United States 
     Code, is amended--
       (1) in subsection (b)(4), by striking the second sentence;
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (J), by striking ``and'' at the end;
       (ii) in subparagraph (K), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(L) transportation-related variables that influence 
     global competitiveness.'';
       (B) in paragraph (2)--
       (i) in the first sentence, by striking ``national 
     transportation system'' and inserting ``transportation 
     systems of the United States'';
       (ii) by striking subparagraph (A) and inserting the 
     following:
       ``(A) be coordinated with efforts to measure outputs and 
     outcomes of the Department of Transportation and the 
     transportation systems of the United States under the 
     Government Performance and Results Act of 1993 (Public Law 
     103-62) and the amendments made by that Act;''; and
       (iii) in subparagraph (C), by inserting ``, made relevant 
     to the States and metropolitan planning organizations,'' 
     after ``accuracy'';
       (C) in paragraph (3), by adding at the end the following: 
     ``The Bureau shall review and report to the Secretary of 
     Transportation on the sources and reliability of the 
     statistics proposed by the heads of the operating 
     administrations of the Department to measure outputs and 
     outcomes as required by the Government Performance and 
     Results Act of 1993 (Public Law 103-62), and the amendments 
     made by that Act, and shall carry out such other reviews of 
     the sources and reliability of other data collected by the 
     heads of the operating administrations of the Department as 
     shall be requested by the Secretary.''; and
       (D) by adding at the end the following:
       ``(7) Supporting transportation decisionmaking.--Ensuring 
     that the statistics compiled under paragraph (1) are relevant 
     for transportation decisionmaking by the Federal Government, 
     State and local governments, transportation-related 
     associations, private businesses, and consumers.'';
       (3) by redesignating subsections (d), (e), and (f) as 
     subsections (h), (i), and (j), respectively;
       (4) by striking subsection (g);
       (5) by inserting after subsection (c) the following:
       ``(d) Transportation Data Base.--
       ``(1) In general.--In consultation with the Associate 
     Deputy Secretary, the Assistant Secretaries, and the heads of 
     the operating administrations of the Department of 
     Transportation, the Director shall establish and maintain a 
     transportation data base for all modes of transportation.
       ``(2) Use.--The data base shall be suitable for analyses 
     carried out by the Federal Government, the States, and 
     metropolitan planning organizations.
       ``(3) Contents.--The data base shall include--
       ``(A) information on the volumes and patterns of movement 
     of goods, including local, interregional, and international 
     movement, by all modes of transportation and intermodal 
     combinations, and by relevant classification;
       ``(B) information on the volumes and patterns of movement 
     of people, including local, interregional, and international 
     movements, by all modes of transportation (including bicycle 
     and pedestrian modes) and intermodal combinations, and by 
     relevant classification;
       ``(C) information on the location and connectivity of 
     transportation facilities and services; and
       ``(D) a national accounting of expenditures and capital 
     stocks on each mode of transportation and intermodal 
     combination.
       ``(e) National Transportation Library.--
       ``(1) In general.--The Director shall establish and 
     maintain a National Transportation Library, which shall 
     contain a collection of statistical and other information 
     needed for transportation decisionmaking at the Federal, 
     State, and local levels.
       ``(2) Access.--The Bureau shall facilitate and promote 
     access to the Library, with the goal of improving the ability 
     of the transportation community to share information and the 
     ability of the Bureau to make statistics readily accessible 
     under subsection (c)(5).
       ``(3) Coordination.--The Bureau shall work with other 
     transportation libraries and other transportation information 
     providers, both public and private, to achieve the goal 
     specified in paragraph (2).
       ``(f) National Transportation Atlas Data Base.--
       ``(1) In general.--The Director shall develop and maintain 
     geospatial data bases that depict--
       ``(A) transportation networks;
       ``(B) flows of people, goods, vehicles, and craft over the 
     networks; and
       ``(C) social, economic, and environmental conditions that 
     affect or are affected by the networks.
       ``(2) Intermodal network analysis.--The data bases shall be 
     able to support intermodal network analysis.
       ``(g) Research and Development Grants.--The Secretary may 
     make grants to, or enter into cooperative agreements or 
     contracts with, public and nonprofit private entities 
     (including State departments of transportation, metropolitan 
     planning organizations, and institutions of higher education) 
     for--
       ``(1) investigation of the subjects specified in subsection 
     (c)(1) and research and development of new methods of data 
     collection, management, integration, dissemination, 
     interpretation, and analysis;
       ``(2) development of electronic clearinghouses of 
     transportation data and related information, as part of the 
     National Transportation Library under subsection (e); and
       ``(3) development and improvement of methods for sharing 
     geographic data, in support of the national transportation 
     atlas data base under subsection (f) and the National Spatial 
     Data Infrastructure developed under Executive Order No. 
     12906.'';
       (6) by striking subsection (i) (as redesignated by 
     paragraph (3)) and inserting the following:
       ``(i) Prohibition on Certain Disclosures.--
       ``(1) In general.--An officer or employee of the Bureau may 
     not--
       ``(A) make any disclosure in which the data provided by an 
     individual or organization under subsection (c)(2) can be 
     identified;
       ``(B) use the information provided under subsection (c)(2) 
     for a nonstatistical purpose; or
       ``(C) permit anyone other than an individual authorized by 
     the Director to examine any individual report provided under 
     subsection (c)(2).
       ``(2) Prohibition on requests for certain data.--
       ``(A) Government agencies.--No department, bureau, agency, 
     officer, or employee of the United States (except the 
     Director in carrying out this section) may require, for any 
     reason, a copy of any report that has been filed under 
     subsection (c)(2) with the Bureau or retained by an 
     individual respondent.
       ``(B) Courts.--Any copy of a report described in 
     subparagraph (A) that has been retained by an individual 
     respondent or filed with the Bureau or any of its employees, 
     contractors, or agents--
       ``(i) shall be immune from legal process; and
       ``(ii) shall not, without the consent of the individual 
     concerned, be admitted as evidence or used for any purpose in 
     any action, suit, or other judicial or administrative 
     proceeding.
       ``(C) Applicability.--This paragraph shall apply only to 
     information that permits information concerning an individual 
     or organization to be reasonably inferred by direct or 
     indirect means.
       ``(3) Data collected for nonstatistical purposes.--In a 
     case in which the Bureau is authorized by statute to collect 
     data or information for a nonstatistical purpose, the 
     Director shall clearly distinguish the collection of the data 
     or information, by rule and on the collection instrument, so 
     as to inform a respondent that is requested or required to 
     supply the data or information of the nonstatistical 
     purpose.'';
       (7) in subsection (j) (as redesignated by paragraph (3)), 
     by striking ``On or before January 1, 1994, and annually 
     thereafter, the'' and inserting ``The''; and
       (8) by adding at the end the following:
       ``(k) Study.--
       ``(1) In general.--The Director shall carry out a study--

[[Page S10696]]

       ``(A) to measure the ton-miles and value-miles of 
     international trade traffic carried by highway for each 
     State;
       ``(B) to evaluate the accuracy and reliability of such 
     measures for use in the formula for highway apportionments;
       ``(C) to evaluate the accuracy and reliability of the use 
     of diesel fuel data as a measure of international trade 
     traffic by State; and
       ``(D) to identify needed improvements in long-term data 
     collection programs to provide accurate and reliable measures 
     of international traffic for use in the formula for highway 
     apportionments.
       ``(2) Basis for evaluations.--The study shall evaluate the 
     accuracy and reliability of measures for use as formula 
     factors based on statistical quality standards developed by 
     the Bureau in consultation with the Committee on National 
     Statistics of the National Academy of Sciences.
       ``(3) Report.--Not later than 3 years after the date of 
     enactment of this subsection, the Director 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 on the results of the study 
     carried out under paragraph (1), including recommendations 
     for changes in law necessary to implement the identified 
     needs for improvements in long-term data collection programs.
       ``(l) Proceeds of Data Product Sales.--Notwithstanding 
     section 3302 of title 31, United States Code, funds received 
     by the Bureau from the sale of data products, for necessary 
     expenses incurred, may be credited to the Highway Trust Fund 
     (other than the Mass Transit Account) for the purpose of 
     reimbursing the Bureau for the expenses.
       ``(m) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $26,000,000 for fiscal year 1998, 
     $27,000,000 for fiscal year 1999, $28,000,000 for fiscal year 
     2000, $29,000,000 for fiscal year 2001, $30,000,000 for 
     fiscal year 2002, and $31,000,000 for fiscal year 2003, 
     except that not more than $500,000 for each fiscal year may 
     be made available to carry out subsection (g).
       ``(2) Availability.--Funds authorized under this subsection 
     shall remain available for a period of 3 years after the last 
     day of the fiscal year for which the funds are authorized.
       ``(3) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23.''.
       (b) Conforming Amendments.--Section 5503 of title 49, 
     United States Code, is amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsections (e), (f), and (g) as 
     subsections (d), (e), and (f), respectively.

     SEC. 2005. RESEARCH AND TECHNOLOGY PROGRAM.

       Title 23, United States Code, is amended--
       (1) in the table of chapters, by adding at the end the 
     following:

``5. Research and Technology.................................501'';....

     and
       (2) by adding at the end the following:

                  ``CHAPTER 5--RESEARCH AND TECHNOLOGY

                 ``SUBCHAPTER I--RESEARCH AND TRAINING

``Sec.
``501. Definition of safety.
``502. Research and technology program.
``503. Advanced research program.
``504. Long-term pavement performance program.
``505. State planning and research program.
``506. Education and training.
``507. International highway transportation outreach program.
``508. National technology deployment initiatives and partnerships 
              program.
``509. Infrastructure investment needs report.
``510. Innovative bridge research and construction program.
``511. Study of future strategic highway research program.
``512. Transportation and environment cooperative research program.

          ``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEMS

``521. Purposes.
``522. Definitions.
``523. Cooperation, consultation, and analysis.
``524. Research, development, and training.
``525. Intelligent transportation system integration program.
``526. Integration program for rural areas.
``527. Commercial vehicle intelligent transportation system 
              infrastructure.
``528. Corridor development and coordination.
``529. Standards.
``530. Funding limitations.
``531. Use of innovative financing.
``532. Advisory committees.

                       ``SUBCHAPTER III--FUNDING

``541. Funding.

                 ``SUBCHAPTER I--RESEARCH AND TRAINING

     ``Sec. 501. Definition of safety

       ``In this chapter, the term `safety' includes highway and 
     traffic safety systems, research and development relating to 
     vehicle, highway, driver, passenger, bicyclist, and 
     pedestrian characteristics, accident investigations, 
     communications, emergency medical care, and transportation of 
     the injured.

     ``Sec. 502. Research and technology program

       ``(a) General Authority and Collaborative Agreements.--
       ``(1) Authority of the secretary.--
       ``(A) In general.--The Secretary--
       ``(i) shall carry out research, development, and technology 
     transfer activities with respect to--

       ``(I) motor carrier transportation;
       ``(II) all phases of transportation planning and 
     development (including construction, operation, 
     modernization, development, design, maintenance, safety, 
     financing, and traffic conditions); and

       ``(III) the effect of State laws on the activities 
     described in subclauses (I) and (II); and

       ``(ii) may test, develop, or assist in testing and 
     developing any material, invention, patented article, or 
     process.
       ``(B) Cooperation, grants, and contracts.--The Secretary 
     may carry out this section--
       ``(i) independently;
       ``(ii) in cooperation with other Federal departments, 
     agencies, and instrumentalities; or
       ``(iii) by making grants to, or entering into contracts, 
     cooperative agreements, and other transactions with, the 
     National Academy of Sciences, the American Association of 
     State Highway and Transportation Officials, or any State 
     agency, authority, association, institution, for-profit or 
     nonprofit corporation, organization, foreign country, or 
     person.
       ``(C) Technical innovation.--The Secretary shall develop 
     and carry out programs to facilitate the application of such 
     products of research and technical innovations as will 
     improve the safety, efficiency, and effectiveness of the 
     transportation system.
       ``(D) Funds.--
       ``(i) In general.--Except as otherwise specifically 
     provided in other sections of this chapter--

       ``(I) to carry out this subsection, the Secretary shall 
     use--

       ``(aa) funds made available under section 541 for research, 
     technology, and training; and
       ``(bb) such funds as may be deposited by any cooperating 
     organization or person in a special account of the Treasury 
     established for this purpose; and

       ``(II) the funds described in item (aa) shall remain 
     available for obligation for a period of 3 years after the 
     last day of the fiscal year for which the funds are 
     authorized.

       ``(ii) Use of funds.--The Secretary shall use funds 
     described in clause (i) to develop, administer, communicate, 
     and promote the use of products of research, development, and 
     technology transfer programs under this section.
       ``(2) Collaborative research and development.--
       ``(A) 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 
     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.
       ``(B) Agreements.--In carrying out this paragraph, 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)).
       ``(C) Federal share.--
       ``(i) In general.--The Federal share of the cost of 
     activities carried out under a cooperative research and 
     development agreement entered into under this paragraph shall 
     not exceed 50 percent, except that if there is substantial 
     public interest or benefit, the Secretary may approve a 
     greater Federal share.
       ``(ii) 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 
     clause (i).
       ``(D) Use of technology.--The research, development, or use 
     of a technology under a cooperative research and development 
     agreement entered into under this paragraph, 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.).
       ``(3) 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.
       ``(b) Mandatory Elements of Program.--The Secretary shall 
     include in the surface transportation research, development, 
     and technology transfer programs under this subsection and as 
     specified elsewhere in this title--
       ``(1) a coordinated long-term program of research for the 
     development, use, and dissemination of performance indicators 
     to measure the performance of the surface transportation 
     systems of the United States, including indicators for 
     productivity, efficiency, energy use, air quality, 
     congestion, safety, maintenance, and other factors that 
     reflect the overall performance of the system; and

[[Page S10697]]

       ``(2) a program to strengthen and expand surface 
     transportation infrastructure research, development, and 
     technology transfer, which shall include, at a minimum--
       ``(A) methods and materials for improving the durability of 
     surface transportation infrastructure facilities and 
     extending the life of bridge structures, including new and 
     innovative technologies to reduce corrosion;
       ``(B) a research and development program directed toward 
     the reduction of costs, and the mitigation of impacts, 
     associated with the construction of highways and mass transit 
     systems;
       ``(C) a surface transportation research program to develop 
     nondestructive evaluation equipment for use with existing 
     infrastructure facilities and with next-generation 
     infrastructure facilities that use advanced materials;
       ``(D)(i) information technology, including appropriate 
     computer programs to collect and analyze data on the status 
     of infrastructure facilities described in subparagraph (C) 
     with respect to enhancing management, growth, and capacity; 
     and
       ``(ii) dynamic simulation models of surface transportation 
     systems for--
       ``(I) predicting capacity, safety, and infrastructure 
     durability problems;
       ``(II) evaluating planned research projects; and
       ``(III) testing the strengths and weaknesses of proposed 
     revisions to surface transportation operation programs;
       ``(E) new innovative technologies to enhance and facilitate 
     field construction and rehabilitation techniques for 
     minimizing disruption during repair and maintenance of 
     structures;
       ``(F) initiatives to improve the ability of the United 
     States to respond to emergencies and natural disasters and to 
     enhance national defense mobility; and
       ``(G) an evaluation of traffic calming measures that 
     promote community preservation, transportation mode choice, 
     and safety.
       ``(c) Report on Goals, Milestones, and Accomplishments.--
     The goals, milestones, and accomplishments relevant to each 
     of the mandatory program elements described in subsection (b) 
     shall be specified in the report required under section 
     5221(d) of title 49.''.

     SEC. 2006. ADVANCED RESEARCH PROGRAM.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as added by section 2005), is amended by adding at the end 
     the following:

     ``Sec. 503. Advanced research program

       ``(a) Establishment.--
       ``(1) In general.--The Secretary shall establish an 
     advanced research program within the Federal Highway 
     Administration to address longer-term, higher-risk research 
     that shows potential benefits for improving the durability, 
     mobility, efficiency, environmental impact, productivity, and 
     safety of transportation systems.
       ``(2) Development of partnerships.--In carrying out the 
     program, the Secretary shall attempt to develop partnerships 
     with the public and private sectors.
       ``(b) Grants, Cooperative Agreements, and Contracts.--Under 
     the program, the Secretary may make grants and enter into 
     cooperative agreements and contracts for advanced research.
       ``(c) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $5,000,000 for fiscal year 1998, 
     $7,000,000 for fiscal year 1999, $9,000,000 for fiscal year 
     2000, and $10,000,000 for each of fiscal years 2001 through 
     2003.
       ``(2) Contract authority.--Funds authorized under this 
     section shall be available for obligation in the same manner 
     as if the funds were apportioned under chapter 1, except that 
     the Federal share of the cost of any activity funded under 
     this subsection shall be determined by the Secretary.''.

     SEC. 2007. LONG-TERM PAVEMENT PERFORMANCE PROGRAM.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2006), is amended by adding at the end 
     the following:

     ``Sec. 504. Long-term pavement performance program

       ``(a) Authority.--The Secretary shall complete the long-
     term pavement performance program tests initiated under the 
     strategic highway research program established under section 
     307(d) (as in effect on the day before the date of enactment 
     of this section) and continued by the Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240) 
     through the midpoint of a planned 20-year life of the long-
     term pavement performance program (referred to in this 
     section as the `program').
       ``(b) Grants, Cooperative Agreements, and Contracts.--Under 
     the program, the Secretary shall make grants and enter into 
     cooperative agreements and contracts to--
       ``(1) monitor, material-test, and evaluate highway test 
     sections in existence as of the date of the grant, agreement, 
     or contract;
       ``(2) analyze the data obtained in carrying out paragraph 
     (1); and
       ``(3) prepare products to fulfill program objectives and 
     meet future pavement technology needs.
       ``(c) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $15,000,000 for each of fiscal years 
     1998 through 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that--
       ``(A) the Federal share of the cost of any activity funded 
     under this section shall be determined by the Secretary; and
       ``(B) the funds shall remain available for obligation for a 
     period of 3 years after the last day of the fiscal year for 
     which the funds are authorized.''.

     SEC. 2008. STATE PLANNING AND RESEARCH PROGRAM.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2007), is amended by adding at the end 
     the following:

     ``Sec. 505. State planning and research program

       ``(a) In General.--
       ``(1) Availability of funds.--Two percent of the sums 
     apportioned for fiscal year 1998 and each fiscal year 
     thereafter to any State under section 104 (except section 
     104(f)) and any transfers or additions to the surface 
     transportation program under section 133 shall be available 
     for expenditure by the State transportation department, in 
     consultation with the Secretary, in accordance with this 
     section.
       ``(2) Use of funds.--The sums referred to in paragraph (1) 
     shall be available only for--
       ``(A) intermodal metropolitan, statewide, and 
     nonmetropolitan planning under sections 134 and 135;
       ``(B) development and implementation of management systems 
     referred to in section 303;
       ``(C) studies, research, development, and technology 
     transfer activities necessary for the planning, design, 
     construction, management, operation, maintenance, regulation, 
     and taxation of the use of surface transportation systems, 
     including training and accreditation of inspection and 
     testing on engineering standards and construction materials 
     for the systems; and
       ``(D) studies of the economy, safety, and convenience of 
     surface transportation usage and the desirable regulation and 
     equitable taxation of surface transportation usage.
       ``(b) Minimum Expenditures on Studies, Research, 
     Development, and Technology Transfer Activities.--
       ``(1) In general.--For each fiscal year, not less than 25 
     percent of the funds of a State that are subject to 
     subsection (a) shall be expended by the State transportation 
     department for studies, research, development, and technology 
     transfer activities described in subparagraphs (C) and (D) of 
     subsection (a)(2) unless the State certifies to the Secretary 
     for the fiscal year that the total expenditures by the State 
     transportation department for transportation planning under 
     sections 134 and 135 will exceed 75 percent of the amount of 
     the funds and the Secretary accepts the certification.
       ``(2) Exemption from small business 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 financed with funds referred to in subsection (a) 
     shall be 80 percent unless the Secretary determines that the 
     interests of the Federal-aid highway program would be best 
     served by decreasing or eliminating the non-Federal share.
       ``(d) Administration of Funds.--Funds referred to in 
     subsection (a) shall be combined and administered by the 
     Secretary as a single fund, which shall be available for 
     obligation for the same period as funds apportioned under 
     section 104(b)(1).''.

     SEC. 2009. EDUCATION AND TRAINING.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2008), is amended by adding at the end 
     the following:

     ``Sec. 506. Education and training

       ``(a) Local Technical Assistance Program.--
       ``(1) Authority.--The Secretary shall carry out a 
     transportation assistance program that will provide access to 
     modern highway technology to--
       ``(A) highway and transportation agencies in urbanized 
     areas with populations of between 50,000 and 1,000,000 
     individuals;
       ``(B) highway and transportation agencies in rural areas; 
     and
       ``(C) contractors that do work for the agencies.
       ``(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 that 
     will--
       ``(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 their expertise in road and 
     transportation areas (including pavement, bridge, safety 
     management systems, 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;

[[Page S10698]]

       ``(B) 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;
       ``(C) operate, in cooperation with State transportation 
     departments and universities--
       ``(i) local technical assistance program centers to provide 
     transportation technology transfer services to rural areas 
     and to urbanized areas with populations of between 50,000 and 
     1,000,000 individuals; and
       ``(ii) local technical assistance program centers 
     designated to provide transportation technical assistance to 
     Indian tribal governments; and
       ``(D) allow local transportation agencies and tribal 
     governments, in cooperation with the private sector, to 
     enhance new technology implementation.
       ``(3) Authorization of contract authority.--
       ``(A) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) 
     $7,000,000 for fiscal year 1998, $7,000,000 for fiscal year 
     1999, $7,000,000 for fiscal year 2000, $8,000,000 for fiscal 
     year 2001, $8,000,000 for fiscal year 2002, and $8,000,000 
     for fiscal year 2003 to be used to develop and administer the 
     program established under this section and to provide 
     technical and financial support for the centers operated 
     under paragraph (2)(C).
       ``(B) Contract authority.--Funds authorized under this 
     paragraph shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that--
       ``(i) the Federal share of the cost of any activity under 
     this subsection shall be determined by the Secretary; and
       ``(ii) the funds shall remain available for obligation for 
     a period of 3 years after the last day of the fiscal year for 
     which the funds are authorized.
       ``(b) National Highway Institute.--
       ``(1) Establishment; duties; programs.--
       ``(A) Establishment.--The Secretary shall establish and 
     operate in the Federal Highway Administration a National 
     Highway Institute (referred to in this subsection as the 
     `Institute').
       ``(B) Duties.--
       ``(i) Institute.--In cooperation with State transportation 
     departments, United States industry, and any national or 
     international entity, the Institute shall develop and 
     administer education and training programs of instruction 
     for--

       ``(I) Federal Highway Administration, State, and local 
     transportation agency employees;
       ``(II) regional, State, and metropolitan planning 
     organizations;
       ``(III) State and local police, public safety, and motor 
     vehicle employees; and
       ``(IV) United States citizens and foreign nationals engaged 
     or to be engaged in surface transportation work of interest 
     to the United States.

       ``(ii) Secretary.--The Secretary shall 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.
       ``(C) Types of programs.--Programs that the Institute may 
     develop and administer may include courses in modern 
     developments, techniques, methods, regulations, management, 
     and procedures relating to--
       ``(i) surface transportation;
       ``(ii) environmental factors;
       ``(iii) acquisition of rights-of-way;
       ``(iv) relocation assistance;
       ``(v) engineering;
       ``(vi) safety;
       ``(vii) construction;
       ``(viii) maintenance;
       ``(ix) operations;
       ``(x) contract administration;
       ``(xi) motor carrier activities;
       ``(xii) inspection; and
       ``(xiii) highway finance.
       ``(2) Set aside; federal share.--Not to exceed \1/4\ of 1 
     percent of 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 
     travel, subsistence, or salaries) in connection with the 
     education and training of employees of State and local 
     transportation agencies in accordance with this subsection.
       ``(3) 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 
     received by them unless the Secretary determines that a lower 
     cost is of critical importance to the public interest.
       ``(4) Training fellowships; cooperation.--The Institute 
     may--
       ``(A) engage in training activities authorized under this 
     subsection, including the granting of training fellowships; 
     and
       ``(B) carry out its authority independently or in 
     cooperation with any other branch of the Federal Government 
     or any State agency, authority, association, institution, 
     for-profit or nonprofit corporation, other national or 
     international entity, or other person.
       ``(5) Collection of fees.--
       ``(A) General rule.--In accordance with this subsection, 
     the Institute may assess and collect fees solely to defray 
     the costs of the Institute in developing or administering 
     education and training programs under this subsection.
       ``(B) Limitation.--Fees may be assessed and collected under 
     this subsection only in a manner that may reasonably be 
     expected to result in the collection of fees during any 
     fiscal year in an aggregate amount that does not exceed the 
     aggregate amount of the costs referred to in subparagraph (A) 
     for the fiscal year.
       ``(C) 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.
       ``(D) 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.
       ``(E) Use.--All fees collected under this subsection shall 
     be used to defray costs associated with the development or 
     administration of education and training programs authorized 
     under this subsection.
       ``(6) Funding.--
       ``(A) Authorization of contract authority.--There shall be 
     available from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out this subsection $5,000,000 for 
     fiscal year 1998, $5,000,000 for fiscal year 1999, $5,000,000 
     for fiscal year 2000, $6,000,000 for fiscal year 2001, 
     $6,000,000 for fiscal year 2002, and $6,000,000 for fiscal 
     year 2003.
       ``(B) Relation to fees.--The funds provided under this 
     paragraph may be combined with or held separate from the fees 
     collected under paragraph (5).
       ``(C) Contract authority.--Funds authorized under this 
     paragraph shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that--
       ``(i) the Federal share of the cost of any activity under 
     this subsection shall be determined by the Secretary; and
       ``(ii) the funds shall remain available for obligation for 
     a period of 1 year after the last day of the fiscal year for 
     which the funds are authorized.
       ``(7) Contracts.--Section 3709 of the Revised Statutes (41 
     U.S.C. 5) shall not apply to a contract or agreement entered 
     into under this subsection.
       ``(c) Dwight David Eisenhower Transportation Fellowship 
     Program.--
       ``(1) General authority.--The Secretary, acting 
     independently or in cooperation with other Federal 
     departments, agencies, and instrumentalities, may make grants 
     for fellowships for any purpose for which research, 
     technology, or capacity building is authorized under this 
     chapter.
       ``(2) Dwight david eisenhower transportation fellowship 
     program.--
       ``(A) In general.--The Secretary shall carry out a 
     transportation 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.
       ``(B) Types of fellowships.--The program shall offer 
     fellowships at the junior through postdoctoral levels of 
     college education.
       ``(C) Citizenship.--Each recipient of a fellowship under 
     the program shall be a United States citizen.
       ``(3) Authorization of contract authority.--
       ``(A) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this subsection $2,000,000 for each of fiscal years 
     1998 through 2003.
       ``(B) Contract authority.--Funds authorized under this 
     paragraph shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that--
       ``(i) the Federal share of the cost of any activity funded 
     under this subsection shall be determined by the Secretary; 
     and
       ``(ii) the funds shall remain available for obligation for 
     a period of 1 year after the last day of the fiscal year for 
     which the funds are authorized.
       ``(d) Highway Construction Training Programs.--
       ``(1) Use of funds by the secretary.--
       ``(A) In general.--The Secretary, in cooperation with any 
     other department or agency of the Federal Government, State 
     agency, authority, association, institution, Indian tribal 
     government, for-profit or nonprofit corporation, or other 
     organization or person, may--
       ``(i) develop, conduct, and administer highway construction 
     and technology training, including skill improvement, 
     programs; and

[[Page S10699]]

       ``(ii) develop and fund Summer Transportation Institutes.
       ``(B) 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 by the Secretary under 
     this subsection.
       ``(C) Funding.--
       ``(i) In general.--Before making apportionments under 
     section 104(b) for a fiscal year, the Secretary shall deduct 
     such sums as the Secretary determines are necessary, but not 
     to exceed $10,000,000 for each fiscal year, to carry out this 
     subsection.
       ``(ii) Availability.--Sums deducted under clause (i) shall 
     remain available until expended.
       ``(2) Use of funds apportioned to states.--Notwithstanding 
     any other provision of law, upon request of a State 
     transportation department to the Secretary, not to exceed \1/
     2\ of 1 percent of the funds apportioned to the State for a 
     fiscal year under paragraphs (1) and (3) of section 104(b) 
     may be made available to carry out this subsection.
       ``(3) Reservation of training positions for individuals 
     receiving welfare assistance.--In carrying out this 
     subsection, the Secretary and States may reserve training 
     positions for individuals who receive welfare assistance from 
     a State.''.

     SEC. 2010. INTERNATIONAL HIGHWAY TRANSPORTATION OUTREACH 
                   PROGRAM.

       (a) In General.--Title 23, United States Code, is amended--
       (1) by redesignating section 325 as section 507;
       (2) by moving that section to appear at the end of 
     subchapter I of chapter 5 (as amended by section 2009);
       (3) in subsection (a) of that section, by inserting ``, 
     goods, and services'' after ``expertise''; and
       (4) by striking subsection (c) of that section and 
     inserting the following:
       ``(c) Use of Funds.--
       ``(1) Funds deposited in special account.--Funds available 
     to carry out this section shall include funds deposited by 
     any cooperating organization or person in a special account 
     for the program established under this section with the 
     Secretary of the Treasury.
       ``(2) Use of funds.--The funds deposited in the special 
     account and other funds available to carry out this section 
     shall be available to pay the cost of any activity eligible 
     under this section, including the cost of promotional 
     materials, travel, reception and representation expenses, and 
     salaries and benefits of officers and employees of the 
     Department of Transportation.
       ``(3) Reimbursements.--Reimbursements for the salaries and 
     benefits of Federal Highway Administration employees who 
     provide services under this section shall be credited to the 
     special account.
       ``(d) Eligible Use of State Planning and Research Funds.--A 
     State, in coordination with the Secretary, may obligate funds 
     made available to carry out section 505 for any activity 
     authorized under subsection (a).''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 325.

     SEC. 2011. NATIONAL TECHNOLOGY DEPLOYMENT INITIATIVES AND 
                   PARTNERSHIPS PROGRAM.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2010), is amended by adding at the end 
     the following:

     ``Sec. 508. National technology deployment initiatives and 
       partnerships program

       ``(a) Establishment.--The Secretary shall develop and 
     administer a national technology deployment initiatives and 
     partnerships program (referred to in this section as the 
     `program').
       ``(b) Purpose.--The purpose of the program is to 
     significantly accelerate the adoption of innovative 
     technologies by the surface transportation community.
       ``(c) Deployment Goals.--
       ``(1) Establishment.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary shall establish 
     not more than 5 deployment goals to carry out subsection (a).
       ``(2) 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, or sustainability.
       ``(3) 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.
       ``(d) Continuation of SHRP Partnerships.--Under the 
     program, the Secretary shall continue the partnerships 
     established through the strategic highway research program 
     established under section 307(d) (as in effect on the day 
     before the date of enactment of this section).
       ``(e) 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, including--
       ``(1) the testing and evaluation of products of the 
     strategic highway research program;
       ``(2) the further development and implementation of 
     technology in areas such as the Superpave system and the use 
     of lithium salts to prevent and mitigate alkali silica 
     reactivity; and
       ``(3) the provision of support for long-term pavement 
     performance product implementation and technology access.
       ``(f) Reports.--Not later than 18 months after the date of 
     enactment of this section, and biennially 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 on the progress and results of 
     activities carried out under this section.
       ``(g) Funding.--
       ``(1) Authorization of contract authority.--There shall be 
     available from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out this section $50,000,000 for 
     each of fiscal years 1998 through 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that--
       ``(A) the Federal share of the cost of any activity under 
     this section shall be determined by the Secretary; and
       ``(B) the funds shall remain available for obligation for a 
     period of 3 years after the last day of the fiscal year for 
     which the funds are authorized.
       ``(3) Allocation.--To the extent appropriate to achieve the 
     goals established under subsection (c), the Secretary may 
     further allocate funds made available under this subsection 
     to States for their use.''.

     SEC. 2012. INFRASTRUCTURE INVESTMENT NEEDS REPORT.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2011), is amended by adding at the end 
     the following:

     ``Sec. 509. Infrastructure investment needs report

       ``Not later than January 31, 1999, and January 31 of every 
     second year thereafter, the Secretary shall report to the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives on estimates of the future highway 
     and bridge needs of the United States.''.

     SEC. 2013. INNOVATIVE BRIDGE RESEARCH AND CONSTRUCTION 
                   PROGRAM.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2012), is amended by adding at the end 
     the following:

     ``Sec. 510. Innovative bridge research and construction 
       program

       ``(a) In General.--The Secretary shall establish and carry 
     out a program to demonstrate the application of innovative 
     material technology in the construction of bridges and other 
     structures.
       ``(b) Goals.--The goals of the program shall include--
       ``(1) the development of new, cost-effective innovative 
     material highway bridge applications;
       ``(2) the reduction of maintenance costs and life-cycle 
     costs of bridges, including the costs of new construction, 
     replacement, or rehabilitation of deficient bridges;
       ``(3) the development of construction techniques to 
     increase safety and reduce construction time and traffic 
     congestion;
       ``(4) the development of engineering design criteria for 
     innovative products and materials for use in highway bridges 
     and structures; and
       ``(5) the development of highway bridges and structures 
     that will withstand natural disasters, including alternative 
     processes for the seismic retrofit of bridges.
       ``(c) Grants, Cooperative Agreements, and Contracts.--
       ``(1) In general.--Under the program, the Secretary shall 
     make grants to, and enter into cooperative agreements and 
     contracts with--
       ``(A) 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
       ``(B) States to pay the Federal share of the cost of 
     repair, rehabilitation, replacement, and new construction of 
     bridges or structures that demonstrates the application of 
     innovative materials.
       ``(2) Grants.--
       ``(A) Applications.--
       ``(i) Submission.--To receive a grant under this section, 
     an entity described in paragraph (1) shall submit an 
     application to the Secretary.
       ``(ii) Contents.--The application shall be in such form and 
     contain such information as the Secretary may require.
       ``(B) Approval criteria.--The Secretary shall select and 
     approve applications for grants under this section based on 
     whether the project that is the subject of the grant meets 
     the goals of the program described in subsection (b).
       ``(d) Technology and Information Transfer.--The Secretary 
     shall take such action as is necessary to ensure that the 
     information and technology resulting from research conducted 
     under subsection (c) is made available to State and local 
     transportation departments and other interested parties as 
     specified by the Secretary.

[[Page S10700]]

       ``(e) Federal Share.--The Federal share of the cost of a 
     project under this section shall be determined by the 
     Secretary.
       ``(f) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account)--
       ``(A) to carry out subsection (c)(1)(A) $1,000,000 for each 
     of fiscal years 1998 through 2003; and
       ``(B) to carry out subsection (c)(1)(B)--
       ``(i) $10,000,000 for fiscal year 1998;
       ``(ii) $15,000,000 for fiscal year 1999;
       ``(iii) $17,000,000 for fiscal year 2000; and
       ``(iv) $20,000,000 for each of fiscal years 2001 through 
     2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be made available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that the Federal share of the cost of a project under 
     this section shall be determined in accordance with this 
     section.''.

     SEC. 2014. USE OF BUREAU OF INDIAN AFFAIRS ADMINISTRATIVE 
                   FUNDS.

       Section 204(b) of title 23, United States Code, is amended 
     in the last sentence by striking ``326'' and inserting 
     ``506''.

     SEC. 2015. STUDY OF FUTURE STRATEGIC HIGHWAY RESEARCH 
                   PROGRAM.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2013), is amended by adding at the end 
     the following:

     ``Sec. 511. Study of future strategic highway research 
       program

       ``(a) Study.--
       ``(1) In general.--Not later than 120 days after the date 
     of enactment of this section, the Secretary shall make a 
     grant to, or enter into a cooperative agreement or contract 
     with, the Transportation Research Board of the National 
     Academy of Sciences (referred to in this section as the 
     `Board') to conduct a study to determine the goals, purposes, 
     research agenda and projects, administrative structure, and 
     fiscal needs for a new strategic highway research program to 
     replace the program established under section 307(d) (as in 
     effect on the day before the date of enactment of this 
     section), or a similar effort.
       ``(2) Consultation.--In conducting the study, the Board 
     shall consult with the American Association of State Highway 
     and Transportation Officials and such other entities as the 
     Board determines to be necessary to the conduct of the study.
       ``(b) Report.--Not later than 2 years after making a grant 
     or entering into a cooperative agreement or contract under 
     subsection (a), the Board shall submit a final report on the 
     results of the study 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.''.

     SEC. 2016. JOINT PARTNERSHIPS FOR ADVANCED VEHICLES, 
                   COMPONENTS, AND INFRASTRUCTURE PROGRAM.

       (a) In General.--Subchapter I of chapter 3 of subtitle I of 
     title 49, United States Code, is amended by adding at the end 
     the following:

     ``Sec. 310. Joint partnerships for advanced vehicles, 
       components, and infrastructure program

       ``(a) Purposes.--The Secretary of Transportation, in 
     coordination with other government agencies and private 
     consortia, shall encourage and promote the research, 
     development, and deployment of transportation technologies 
     that will use technological advances in multimodal vehicles, 
     vehicle components, environmental technologies, and related 
     infrastructure to remove impediments to an efficient and 
     cost-effective national transportation system.
       ``(b) Definition of Eligible Consortium.--In this section, 
     the term `eligible consortium' means a consortium that 
     receives funding under the Department of Defense 
     Appropriations Act, 1993 (Public Law 102-396; 106 Stat. 
     1876), and that comprises 2 or more of the following 
     entities:
       ``(1) Businesses incorporated in the United States.
       ``(2) Public or private educational or research 
     organizations located in the United States.
       ``(3) Entities of State or local governments in the United 
     States.
       ``(4) Federal laboratories.
       ``(c) Program.--The Secretary shall enter into contracts, 
     cooperative agreements, and other transactions as authorized 
     by section 2371 of title 10 with, and make grants to, 
     eligible consortia to promote the development and deployment 
     of innovation in transportation technology services, 
     management, and operational practices.
       ``(d) Eligibility Criteria.--To be eligible to receive 
     assistance under this section, an eligible consortium shall--
       ``(1) for a period of not less than the 3 years preceding 
     the date of a contract, cooperative agreement, or other 
     transaction, be organized on a statewide or multistate basis 
     for the purpose of designing, developing, and deploying 
     transportation technologies that address identified 
     technological impediments in the transportation field;
       ``(2) facilitate the participation in the consortium of 
     small- and medium-sized businesses, utilities, public 
     laboratories and universities, and other relevant entities;
       ``(3) be actively engaged in transportation technology 
     projects that address compliance in nonattainment areas under 
     the Clean Air Act (42 U.S.C. 7401 et seq.);
       ``(4) be designed to use Federal and State funding to 
     attract private capital in the form of grants or investments 
     to carry out this section; and
       ``(5) ensure that at least 50 percent of the funding for 
     the consortium project will be provided by non-Federal 
     sources.
       ``(e) Proposals.--The Secretary shall prescribe such terms 
     and conditions as the Secretary determines to be appropriate 
     for the content and structure of proposals submitted for 
     assistance under this section.
       ``(f) Reporting Requirements.--At least once each year, the 
     Secretary shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     report on the projects undertaken by the eligible consortia 
     and the progress made in advancing the purposes of this 
     section.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 1998 through 2003, to remain available 
     until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 3 of subtitle I of title 49, United States Code, is 
     amended by adding at the end the following:

``310. Joint partnerships for advanced vehicles, components, and 
              infrastructure program.''.

     SEC. 2017. TRANSPORTATION AND ENVIRONMENT COOPERATIVE 
                   RESEARCH PROGRAM.

       Subchapter I of chapter 5 of title 23, United States Code 
     (as amended by section 2015), is amended by adding at the end 
     the following:

     ``Sec. 512. Transportation and environment cooperative 
       research program

       ``(a) In General.--The Secretary shall establish and carry 
     out a transportation and environment cooperative research 
     program.
       ``(b) Advisory Board.--
       ``(1) Establishment.--In consultation with the Secretary of 
     Energy and the Administrator of the Environmental Protection 
     Agency, the Secretary shall establish an advisory board to 
     recommend environmental and energy conservation research, 
     technology, and technology transfer activities related to 
     surface transportation.
       ``(2) Membership.--The advisory board shall include--
       ``(A) representatives of State transportation and 
     environmental agencies;
       ``(B) transportation and environmental scientists and 
     engineers; and
       ``(C) representatives of metropolitan planning 
     organizations, transit operating agencies, and environmental 
     organizations.
       ``(3) Development of research priorities.--In developing 
     recommendations for priorities for research described in 
     paragraph (1), the advisory board shall consider the research 
     recommendations of the National Research Council report 
     entitled `Environmental Research Needs in Transportation'.
       ``(4) Applicability of federal advisory committee act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the advisory board.
       ``(c) National Academy of Sciences.--
       ``(1) In general.--The Secretary may make grants to, and 
     enter into cooperative agreements with, the National Academy 
     of Sciences to carry out such activities related to the 
     research, technology, and technology transfer activities 
     described in subsection (b)(1) as the Secretary determines to 
     be appropriate.
       ``(2) Ecosystem integrity study.--
       ``(A) In general.--The Secretary shall give priority to 
     conducting a study of, and preparing a report on, the 
     relationship between highway density and ecosystem integrity, 
     including an analysis of the habitat-level impacts of highway 
     density on the overall health of ecosystems.
       ``(B) Proposal of rapid assessment methodology.--To aid 
     transportation and regulatory agencies, the report shall 
     propose a rapid assessment methodology for determining the 
     relationship between highway density and ecosystem integrity.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 1998 through 2003.''.

     SEC. 2018. CONFORMING AMENDMENTS.

       (a) Sections 307, 321, and 326 of title 23, United States 
     Code, are repealed.
       (b) The analysis for chapter 3 of title 23, United States 
     Code, is amended by striking the items relating to sections 
     307, 321, and 326.
       (c) Section 115(a)(1)(A)(i) of title 23, United States 
     Code, is amended by striking ``or 307'' and inserting ``or 
     505''.
       (d) Section 151(d) of title 23, United States Code, is 
     amended by striking ``section 307(a),'' and inserting 
     ``section 506,''.
       (e) Section 106 of Public Law 89-564 (23 U.S.C. 403 note) 
     is amended in the third sentence by striking ``sections 307 
     and 403 of title 23, United States Code,'' and inserting 
     ``section 403 and chapter 5 of title 23, United States 
     Code,''.
             Subtitle B--Intelligent Transportation Systems

     SEC. 2101. SHORT TITLE.

       This subtitle may be cited as the ``Intelligent 
     Transportation Systems Act of 1997''.

     SEC. 2102. FINDINGS.

       Congress finds that--
       (1) numerous studies conducted on behalf of the Department 
     of Transportation document that investment in intelligent 
     transportation systems offers substantial benefits in 
     relationship to costs;

[[Page S10701]]

       (2) as a result of the investment authorized by the 
     Intelligent Transportation Systems Act of 1991 (23 U.S.C. 307 
     note; 105 Stat. 2189), progress has been made on each of the 
     goals set forth for the national intelligent transportation 
     system program in section 6052(b) of that Act; and
       (3) continued investment by the Department of 
     Transportation is needed to complete implementation of those 
     goals.

     SEC. 2103. INTELLIGENT TRANSPORTATION SYSTEMS.

       Chapter 5 of title 23, United States Code (as added by 
     section 2005), is amended by adding at the end the following:

          ``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEMS

     ``Sec. 521. Purposes

       ``The purposes of this subchapter are--
       ``(1) to expedite deployment and integration of basic 
     intelligent transportation system services for consumers of 
     passenger and freight transportation across the United 
     States;
       ``(2) to encourage the use of intelligent transportation 
     systems to enhance international trade and domestic economic 
     productivity;
       ``(3) to encourage the use of intelligent transportation 
     systems to promote the achievement of national environmental 
     goals;
       ``(4) to continue research, development, testing, and 
     evaluation activities to continually expand the state-of-the-
     art in intelligent transportation systems;
       ``(5) to provide financial and technical assistance to 
     State and local governments and metropolitan planning 
     organizations to ensure the integration of interoperable, 
     intermodal, and cost-effective intelligent transportation 
     systems;
       ``(6) to foster regional cooperation, standards 
     implementation, and operations planning to maximize the 
     benefits of integrated and coordinated intelligent 
     transportation systems;
       ``(7) to promote the consideration of intelligent 
     transportation systems in mainstream transportation planning 
     and investment decisionmaking by ensuring that Federal and 
     State transportation officials have adequate, working 
     knowledge of intelligent transportation system technologies 
     and applications and by ensuring comprehensive funding 
     eligibility for the technologies and applications;
       ``(8) to encourage intelligent transportation system 
     training for, and technology transfer to, State and local 
     agencies;
       ``(9) to promote the deployment of intelligent 
     transportation system services in rural America so as to 
     achieve safety benefits, promote tourism, and improve quality 
     of life;
       ``(10) to promote the innovative use of private resources, 
     such as through public-private partnerships or other uses of 
     private sector investment, to support the development and 
     integration of intelligent transportation systems throughout 
     the United States;
       ``(11) to complete the Federal investment in the Commercial 
     Vehicle Information Systems and Networks by September 30, 
     2003;
       ``(12) to facilitate intermodalism through deployment of 
     intelligent transportation systems, including intelligent 
     transportation system technologies for transit systems to 
     improve safety, efficiency, capacity, and utility for the 
     public;
       ``(13) to enhance the safe operation of motor vehicles, 
     including motorcycles, and nonmotorized vehicles on the 
     surface transportation systems of the United States, with a 
     particular emphasis on decreasing the number and severity of 
     collisions; and
       ``(14) to accommodate the needs of all users of the surface 
     transportation systems of the United States, including the 
     operators of commercial vehicles, passenger vehicles, and 
     motorcycles.

     ``Sec. 522. 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.--The term `commercial 
     vehicle operations'--
       ``(A) means motor carrier operations and motor vehicle 
     regulatory activities associated with the commercial movement 
     of goods, including hazardous materials, and passengers; and
       ``(B) with respect to the public sector, includes the 
     issuance of operating credentials, the administration of 
     motor vehicle and fuel taxes, and roadside safety and border 
     crossing inspection and regulatory compliance operations.
       ``(3) Completed standard.--The term `completed standard' 
     means a standard adopted and published by the appropriate 
     standards-setting organization through a voluntary consensus 
     standardmaking process.
       ``(4) Corridor.--The term `corridor' means any major 
     transportation route that includes parallel limited access 
     highways, major arterials, or transit lines.
       ``(5) 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.
       ``(6) National architecture.--The term `national 
     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.
       ``(7) Provisional standard.--The term `provisional 
     standard' means a provisional standard established by the 
     Secretary under section 529(c).
       ``(8) 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 support the national architecture and 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. 523. Cooperation, consultation, and analysis

       ``(a) Cooperation.--In carrying out this subchapter, the 
     Secretary shall--
       ``(1) foster enhanced operation and management of the 
     surface transportation systems of the United States;
       ``(2) promote the widespread deployment of intelligent 
     transportation systems; and
       ``(3) advance emerging technologies, in cooperation with 
     State and local governments and the private sector.
       ``(b) Consultation.--As appropriate, in carrying out this 
     subchapter, the Secretary shall--
       ``(1) consult with the heads of other interested Federal 
     departments and agencies; and
       ``(2) maximize the involvement of the United States private 
     sector, colleges and universities, and State and local 
     governments in all aspects of carrying out this subchapter.
       ``(c) Procurement Methods.--To meet the need for effective 
     implementation of intelligent transportation system projects, 
     the Secretary shall develop appropriate technical assistance 
     and guidance to assist State and local agencies in evaluating 
     and selecting appropriate methods of procurement for 
     intelligent transportation system projects, including 
     innovative and nontraditional methods of procurement.

     ``Sec. 524. Research, development, and training

       ``(a) In General.--The Secretary shall carry out a 
     comprehensive program of intelligent transportation system 
     research, development, operational testing, technical 
     assistance and training, national architecture activities, 
     standards development and implementation, and other similar 
     activities that are necessary to carry out the purposes of 
     this subchapter.
       ``(b) Intelligent Vehicle and Intelligent Infrastructure 
     Programs.--
       ``(1) In general.--
       ``(A) Program.--The Secretary shall carry out a program to 
     conduct research, development, and engineering designed to 
     stimulate and advance deployment of an integrated intelligent 
     vehicle program and an integrated intelligent infrastructure 
     program, consisting of--
       ``(i) projects such as crash avoidance, automated highway 
     systems, advanced vehicle controls, and roadway safety and 
     efficiency systems linked to intelligent vehicles; and
       ``(ii) projects that improve mobility and the quality of 
     the environment, including projects for traffic management, 
     incident management, transit management, toll collection, 
     traveler information, and traffic control systems.
       ``(B) Consideration of vehicle and infrastructure 
     elements.--In carrying out subparagraph (A), the Secretary 
     may consider systems that include both vehicle and 
     infrastructure elements and determine the most appropriate 
     mix of those elements.
       ``(2) National architecture.--The program carried out under 
     paragraph (1) shall be consistent with the national 
     architecture.
       ``(3) Priorities.--In carrying out paragraph (1), the 
     Secretary shall give higher priority to activities that--
       ``(A) assist motor vehicle drivers in avoiding motor 
     vehicle crashes;
       ``(B) assist in the development of an automated highway 
     system; or
       ``(C) improve the integration of air bag technology with 
     other on-board safety systems and maximize the safety 
     benefits of the simultaneous use of an automatic restraint 
     system and seat belts.
       ``(4) Cost sharing.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Federal share of the cost of a research project carried 
     out in cooperation with a non-Federal entity under a program 
     carried out under paragraph (1) shall not exceed 80 percent.
       ``(B) Innovative or high-risk research projects.--The 
     Federal share of the cost of an innovative or high-risk 
     research project described in subparagraph (A) may, at the 
     discretion of the Secretary, be 100 percent.
       ``(5) Plan.--The Secretary shall--
       ``(A) not later than 1 year after the date of enactment of 
     this subchapter, submit to

[[Page S10702]]

     Congress a 6-year plan specifying the goals, objectives, and 
     milestones to be achieved by each program carried out under 
     paragraph (1); and
       ``(B) report biennially to Congress on the progress in 
     meeting the goals, objectives, and milestones.
       ``(c) Evaluation.--
       ``(1) Guidelines and requirements.--
       ``(A) In general.--The Secretary shall establish guidelines 
     and requirements for the independent evaluation of field and 
     related operational tests, and, if necessary, deployment 
     projects, carried out under this subchapter.
       ``(B) Required provisions.--The guidelines and requirements 
     established 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 parties to any such 
     test or deployment project or by any other formal evaluation 
     carried out under this subchapter.
       ``(2) Funding.--
       ``(A) Small projects.--In the case of a test or project 
     with a cost of less than $5,000,000, the Secretary may 
     allocate not more than 15 percent of the funds made available 
     to carry out the test or project for an evaluation of the 
     test or project.
       ``(B) Moderate projects.--In the case of a test or project 
     with a cost of $5,000,000 or more, but less than $10,000,000, 
     the Secretary may allocate not more than 10 percent of the 
     funds made available to carry out the test or project for an 
     evaluation of the test or project.
       ``(C) Large projects.--In the case of a test or project 
     with a cost of $10,000,000 or more, the Secretary may 
     allocate not more than 5 percent of the funds made available 
     to carry out the test or project for an evaluation of the 
     test or project.
       ``(3) Inapplicability of paperwork reduction act.--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.
       ``(d) Information Clearinghouse.--
       ``(1) In general.--The Secretary shall--
       ``(A) maintain a repository for technical and safety data 
     collected as a result of federally sponsored projects carried 
     out under this subchapter; and
       ``(B) on request, make that information (except for 
     proprietary information and data) readily available to all 
     users of the repository at an appropriate cost.
       ``(2) Delegation of authority.--
       ``(A) In general.--The Secretary may delegate the 
     responsibility of the Secretary under this subsection, with 
     continuing oversight by the Secretary, to an appropriate 
     entity not within the Department of Transportation.
       ``(B) Federal assistance.--If the Secretary delegates the 
     responsibility, the entity to which the responsibility is 
     delegated shall be eligible for Federal assistance under this 
     section.
       ``(e) Traffic Incident Management and Response.--The 
     Secretary shall carry out a program to advance traffic 
     incident management and response technologies, strategies, 
     and partnerships that are fully integrated with intelligent 
     transportation systems.
       ``(f) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $120,000,000 for fiscal year 1998, 
     $125,000,000 for fiscal year 1999, $130,000,000 for fiscal 
     year 2000, $135,000,000 for fiscal year 2001, $140,000,000 
     for fiscal year 2002, and $150,000,000 for fiscal year 2003, 
     of which, for each fiscal year--
       ``(A) not less than $25,000,000 shall be available for 
     activities that assist motor vehicle drivers in avoiding 
     motor vehicle crashes, including activities that improve the 
     integration of air bag technology with other on-board safety 
     systems;
       ``(B) not less than $25,000,000 shall be available for 
     activities that assist in the development of an automated 
     highway system; and
       ``(C) not less than $3,000,000 shall be available for 
     traffic incident management and response.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1.

     ``Sec. 525. Intelligent transportation system integration 
       program

       ``(a) In General.--The Secretary shall conduct a 
     comprehensive program (referred to in this section as the 
     `program') to accelerate the integration and interoperability 
     of intelligent transportation systems.
       ``(b) Selection of Projects.--
       ``(1) In general.--Under the program, the Secretary shall 
     select for funding, through competitive solicitation, 
     projects that will serve as models to improve transportation 
     efficiency, promote safety, increase traffic flow, reduce 
     emissions of air pollutants, improve traveler information, or 
     enhance alternative transportation modes.
       ``(2) Priorities.--Under the program, the Secretary shall 
     give higher priority to funding projects that--
       ``(A) promote and foster integration strategies and written 
     agreements among local governments, States, and other 
     regional entities;
       ``(B) build on existing (as of the date of project 
     selection) intelligent transportation system projects;
       ``(C) deploy integrated intelligent transportation system 
     projects throughout metropolitan areas;
       ``(D) deploy integrated intelligent transportation system 
     projects that enhance safe freight movement or coordinate 
     intermodal travel, including intermodal travel at ports of 
     entry into the United States; and
       ``(E) advance intelligent transportation system deployment 
     projects that are consistent with the national architecture 
     and, as appropriate, comply with required standards as 
     described in section 529.
       ``(c) Private Sector Involvement.--In carrying out the 
     program, the Secretary shall encourage private sector 
     involvement and financial commitment, to the maximum extent 
     practicable, through innovative financial arrangements, 
     especially public-private partnerships.
       ``(d) Financing and Operations Plans.--As a condition of 
     receipt of funds under the program, a recipient participating 
     in a project shall submit to the Secretary a multiyear 
     financing and operations plan that describes how the project 
     can be cost-effectively operated and maintained.
       ``(e) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $100,000,000 for fiscal year 1998, 
     $110,000,000 for fiscal year 1999, $115,000,000 for fiscal 
     year 2000, $130,000,000 for fiscal year 2001, $135,000,000 
     for fiscal year 2002, and $145,000,000 for fiscal year 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that, in the case of a project funded under paragraph 
     (1)--
       ``(A) the Federal share of the cost of the project payable 
     from funds made available under paragraph (1) shall not 
     exceed 50 percent; and
       ``(B) the total Federal share of the cost of the project 
     payable from all eligible sources (including paragraph (1)) 
     shall not exceed 80 percent.

     ``Sec. 526. Integration program for rural areas

       ``(a) In General.--The Secretary shall conduct a 
     comprehensive program (referred to in this section as the 
     `program') to accelerate the integration or deployment of 
     intelligent transportation systems in rural areas.
       ``(b) Selection of Projects.--Under the program, the 
     Secretary shall--
       ``(1) select projects through competitive solicitation; and
       ``(2) give higher priority to funding projects that--
       ``(A) promote and foster integration strategies and 
     agreements among local governments, States, and other 
     regional entities;
       ``(B) deploy integrated intelligent transportation system 
     projects that improve mobility, enhance the safety of the 
     movement of passenger vehicles and freight, or promote 
     tourism; or
       ``(C) advance intelligent transportation system deployment 
     projects that are consistent with the national architecture 
     and comply with required standards as described in section 
     529.
       ``(c) Private Sector Involvement.--In carrying out the 
     program, the Secretary shall encourage private sector 
     involvement and financial commitment, to the maximum extent 
     practicable, through innovative financial arrangements, 
     especially public-private partnerships.
       ``(d) Financing and Operations Plans.--As a condition of 
     receipt of funds under the program, a recipient participating 
     in a project shall submit to the Secretary a multiyear 
     financing and operations plan that describes how the project 
     can be cost-effectively operated and maintained
       ``(e) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $10,000,000 for fiscal year 1998, 
     $10,000,000 for fiscal year 1999, $15,000,000 for fiscal year 
     2000, $15,000,000 for fiscal year 2001, $20,000,000 for 
     fiscal year 2002, and $20,000,000 for fiscal year 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that, in the case of a project funded under paragraph 
     (1)--
       ``(A) the Federal share of the cost of the project payable 
     from funds made available under paragraph (1) shall not 
     exceed 50 percent; and
       ``(B) the total Federal share of the cost of the project 
     payable from all eligible sources (including paragraph (1)) 
     shall not exceed 80 percent.

     ``Sec. 527. Commercial vehicle intelligent transportation 
       system infrastructure

       ``(a) In General.--The Secretary shall carry out a 
     comprehensive program--
       ``(1) to deploy intelligent transportation systems that 
     will promote the safety and productivity of commercial 
     vehicles and drivers; and
       ``(2) to reduce costs associated with commercial vehicle 
     operations and State and Federal commercial vehicle 
     regulatory requirements.
       ``(b) Elements of Program.--
       ``(1) Safety information systems and networks.--

[[Page S10703]]

       ``(A) In general.--The program shall advance the 
     technological capability and promote the deployment of 
     commercial vehicle, commercial driver, and carrier-specific 
     safety information systems and networks and other intelligent 
     transportation system technologies used to assist States in 
     identifying high-risk commercial operations and in conducting 
     other innovative safety strategies, including the Commercial 
     Vehicle Information Systems and Networks.
       ``(B) Focus of projects.--Projects assisted under the 
     program shall focus on--
       ``(i) identifying and eliminating unsafe and illegal 
     carriers, vehicles, and drivers in a manner that does not 
     unduly hinder the productivity and efficiency of safe and 
     legal commercial operations;
       ``(ii) enhancing the safe passage of commercial vehicles 
     across the United States and across international borders;
       ``(iii) reducing the numbers of violations of out-of-
     service orders; and
       ``(iv) complying with directives to address other safety 
     violations.
       ``(2) Monitoring systems.--The program shall advance on-
     board driver and vehicle safety monitoring systems, including 
     fitness-for-duty, brake, and other operational monitoring 
     technologies, that will facilitate commercial vehicle safety, 
     including inspection by motor carrier safety assistance 
     program officers and employees under chapter 311 of title 49.
       ``(c) Use of Federal Funds.--
       ``(1) In general.--Federal funds used to carry out the 
     program shall be primarily used to improve--
       ``(A) commercial vehicle safety and the effectiveness and 
     efficiency of enforcement efforts conducted under the motor 
     carrier safety assistance program under chapter 311 of title 
     49;
       ``(B) electronic processing of registration, driver 
     licensing, fuel tax, and other safety information; and
       ``(C) communication of the information described in 
     subparagraph (B) among the States.
       ``(2) Leveraging.--Federal funds used to carry out the 
     program shall, to the maximum extent practicable--
       ``(A) be leveraged with non-Federal funds; and
       ``(B) be used for activities not carried out through the 
     use of private funds.
       ``(d) Federal Share.--The Federal share of the cost of a 
     project assisted under the program shall be not more than 80 
     percent.
       ``(e) Authorization of Contract Authority.--
       ``(1) In general.--There shall be available from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this section $25,000,000 for fiscal year 1998, 
     $25,000,000 for fiscal year 1999, $25,000,000 for fiscal year 
     2000, $35,000,000 for fiscal year 2001, $35,000,000 for 
     fiscal year 2002, and $40,000,000 for fiscal year 2003.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1, 
     except that, in the case of a project funded under paragraph 
     (1)--
       ``(A) the Federal share of the cost of the project payable 
     from funds made available under paragraph (1) shall not 
     exceed 50 percent; and
       ``(B) the total Federal share of the cost of the project 
     payable from all eligible sources (including paragraph (1)) 
     shall not exceed 80 percent.

     ``Sec. 528. Corridor development and coordination

       ``(a) In General.--The Secretary shall encourage multistate 
     cooperative agreements, coalitions, or other arrangements 
     intended to promote regional cooperation, planning, and 
     shared project implementation for intelligent transportation 
     system projects.
       ``(b) Funding.--There shall be available to carry out this 
     section for each fiscal year not more than--
       ``(1) $3,000,000 of the amounts made available under 
     section 524(f); and
       ``(2) $7,000,000 of the amounts made available under 
     section 525(e).

     ``Sec. 529. Standards

       ``(a) In General.--
       ``(1) Development, implementation, and maintenance.--The 
     Secretary shall develop, implement, and maintain a national 
     architecture and supporting standards 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 standards shall promote 
     interoperability among, and efficiency of, intelligent 
     transportation system technologies implemented throughout the 
     States.
       ``(3) Use of standards-setting organizations.--In carrying 
     out this section, the Secretary may use the services of such 
     standards-setting organizations as the Secretary determines 
     appropriate.
       ``(b) Report.--
       ``(1) In general.--Not later than January 1, 1999, the 
     Secretary shall submit a report describing the status of all 
     standards.
       ``(2) Contents.--The report shall--
       ``(A) identify each standard that is needed for operation 
     of intelligent transportation systems in the United States;
       ``(B) specify the status of the development of each 
     standard;
       ``(C) provide a timetable for achieving agreement on each 
     standard as described in this section; and
       ``(D) determine which standards are critical to ensuring 
     national interoperability or critical to the development of 
     other standards.
       ``(c) Establishment of Provisional Standards.--
       ``(1) Establishment.--Subject to subsection (d), if a 
     standard determined to be critical under subsection (b)(2)(D) 
     is not adopted and published by the appropriate standards-
     setting organization by January 1, 2001, the Secretary shall 
     establish a provisional standard after consultation with 
     affected parties.
       ``(2) Period of effectiveness.--The provisional standard 
     shall--
       ``(A) be published in the Federal Register;
       ``(B) take effect not later than May 1, 2001; and
       ``(C) remain in effect until the appropriate standards-
     setting organization adopts and publishes a standard.
       ``(d) Waiver of Requirement To Establish Provisional 
     Standards.--
       ``(1) Notice.--The Secretary may waive the requirement to 
     establish a provisional standard by submitting, not later 
     than January 1, 2001, to the Committee on Environment and 
     Public Works of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, a notice that--
       ``(A) specifies the provisional standard subject to the 
     waiver;
       ``(B) describes the history of the development of the 
     standard subject to the waiver;
       ``(C) specifies the reasons why the requirement for the 
     establishment of the provisional standard is being waived;
       ``(D) describes the impacts of delaying the establishment 
     of the standard subject to the waiver, especially the impacts 
     on the purposes of this subchapter; and
       ``(E) provides specific estimates as to when the standard 
     subject to the waiver is expected to be adopted and published 
     by the appropriate standards-setting organization.
       ``(2) Progress reports.--
       ``(A) In general.--In the case of each standard subject to 
     a waiver by the Secretary under paragraph (1), the Secretary 
     shall submit, in accordance with the schedule specified in 
     subparagraph (B), a report to the Committee on Environment 
     and Public Works of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives on the progress of the adoption of a 
     completed standard.
       ``(B) Schedule of reports.--The Secretary shall submit a 
     report under subparagraph (A) with respect to a standard--
       ``(i) not later than 180 days after the date of submission 
     of the notice under paragraph (1) with respect to the 
     standard; and
       ``(ii) at the end of each 180-day period thereafter until 
     such time as a standard has been adopted and published by the 
     appropriate standards-setting organization or the waiver is 
     withdrawn under paragraph (3).
       ``(C) Consultation.--In developing each progress report 
     under subparagraph (A), the Secretary shall consult with the 
     standards-setting organizations involved in the 
     standardmaking process for the standard.
       ``(3) Withdrawal of waiver.--
       ``(A) In general.--At any time, the Secretary may, through 
     notification to the Committee on Environment and Public Works 
     of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives, withdraw a 
     notice of a waiver of the requirement to establish a 
     provisional standard.
       ``(B) Implementation.--If the Secretary submits 
     notification under subparagraph (A) with respect to a 
     provisional standard, not less than 30 days, but not more 
     than 90 days, after the date of the notification, the 
     Secretary shall implement the provisional standard, unless, 
     by the end of the 90-day period beginning on the date of the 
     notification, a standard has been adopted and published by 
     the appropriate standards-setting organization.
       ``(e) Requirement for Compliance With Standard.--
       ``(1) In general.--
       ``(A) Standard in existence.--Funds made available from the 
     Highway Trust Fund shall not be used to deploy an intelligent 
     transportation system technology if the technology does not 
     comply with each applicable provisional standard or completed 
     standard.
       ``(B) No standard in existence.--In the absence of a 
     provisional standard or completed standard, Federal funds 
     shall not be used to deploy an intelligent transportation 
     system technology if the deployment is not consistent with 
     the interfaces to ensure interoperability that are contained 
     in the national architecture.
       ``(2) Applicability.--Paragraph (1) shall not apply to--
       ``(A) the operation or maintenance of an intelligent 
     transportation system in existence on the date of enactment 
     of this subchapter; or
       ``(B) the upgrade or expansion of an intelligent 
     transportation system in existence on the date of enactment 
     of this subchapter if the Secretary determines that the 
     upgrade or expansion--
       ``(i) does not adversely affect the purposes of this 
     subchapter, especially the goal of national or regional 
     interoperability;
       ``(ii) is carried out before the end of the useful life of 
     the system; and
       ``(iii) is cost effective as compared to alternatives that 
     meet the compliance requirement of paragraph (1)(A) or the 
     consistency requirement of paragraph (1)(B).

[[Page S10704]]

       ``(f) Spectrum.--
       ``(1) Consultation.--The Secretary shall consult with the 
     Secretary of Commerce, the Secretary of Defense, and the 
     Chairman of the Federal Communications Commission to 
     determine the best means for securing the necessary spectrum 
     for the near-term establishment of a dedicated short-range 
     vehicle-to-wayside wireless standard and any other spectrum 
     that the Secretary determines to be critical to the 
     implementation of this title.
       ``(2) Progress report.--After consultation under paragraph 
     (1) and with other affected agencies, but not later than 1 
     year after the date of enactment of this subchapter, the 
     Secretary shall submit a report to Congress on the progress 
     made in securing the spectrum described in paragraph (1).
       ``(3) Deadline for securing spectrum.--Notwithstanding any 
     other provision of law, not later than 2 years after the date 
     of enactment of this subchapter, the Secretary of Commerce 
     shall release to the Federal Communications Commission, and 
     the Federal Communications Commission shall allocate, the 
     spectrum described in paragraph (1).
       ``(g) Funding.--The Secretary shall use funds made 
     available under section 524 to carry out this section.

     ``Sec. 530. Funding limitations

       ``(a) Consistency With National Architecture.--The 
     Secretary shall use funds made available under this 
     subchapter to deploy intelligent transportation system 
     technologies that are consistent with the national 
     architecture.
       ``(b) Competition With Privately Funded Projects.--To the 
     maximum extent practicable, the Secretary shall not fund any 
     intelligent transportation system operational test or 
     deployment project that competes with a similar privately 
     funded project.
       ``(c) Infrastructure Development.--Funds made available 
     under this subchapter for operational tests and deployment 
     projects--
       ``(1) shall be used primarily for the development of 
     intelligent transportation system infrastructure; and
       ``(2) to the maximum extent practicable, shall not be used 
     for the construction of physical highway and transit 
     infrastructure unless the construction is incidental and 
     critically necessary to the implementation of an intelligent 
     transportation system project.
       ``(d) Public Relations and Training.--For each fiscal year, 
     not more than $15,000,000 of the funds made available under 
     this subchapter shall be used for intelligent transportation 
     system outreach, public relations, training, mainstreaming, 
     shareholder relations, or related activities.

     ``Sec. 531. Use of innovative financing

       ``(a) In General.--The Secretary may use up to 25 percent 
     of the funds made available under this subchapter and section 
     541 to make available loans, lines of credit, and loan 
     guarantees for projects that are eligible for assistance 
     under this title and that have significant intelligent 
     transportation system elements.
       ``(b) Consistency With Other Law.--Credit assistance 
     described in subsection (a) shall be made available in a 
     manner consistent with the Transportation Infrastructure 
     Finance and Innovation Act of 1997.

     ``Sec. 532. Advisory committees

       ``(a) In General.--In carrying out this subchapter, the 
     Secretary shall use 1 or more advisory committees.
       ``(b) Applicability of Federal Advisory Committee Act.--Any 
     advisory committee so used shall be subject to the Federal 
     Advisory Committee Act (5 U.S.C. App.).''.

     SEC. 2104. CONFORMING AMENDMENT.

       The Intermodal Surface Transportation Efficiency Act of 
     1991 is amended by striking part B of title VI (23 U.S.C. 307 
     note; 105 Stat. 2189).
                          Subtitle C--Funding

     SEC. 2201. FUNDING.

       Chapter 5 of title 23, United States Code (as amended by 
     section 2103), is amended by adding at the end the following:

                       ``SUBCHAPTER III--FUNDING

     ``Sec. 541. Funding

       ``(a) Research, Technology, and Training.--There shall be 
     available from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out sections 502, 507, 509, and 511 
     $98,000,000 for fiscal year 1998, $101,000,000 for fiscal 
     year 1999, $104,000,000 for fiscal year 2000, $107,000,000 
     for fiscal year 2001, $110,000,000 for fiscal year 2002, and 
     $114,000,000 for fiscal year 2003.
       ``(b) Contract Authority.--Funds authorized under this 
     section shall be available for obligation in the same manner 
     as if the funds were apportioned under chapter 1, except 
     that--
       ``(1) any Federal share of the cost of an activity under 
     this chapter shall be determined in accordance with this 
     chapter; and
       ``(2) the funds shall remain available for obligation for a 
     period of 4 years after the last day of the fiscal year for 
     which the funds are authorized.
       ``(c) Limitations on Obligations.--Notwithstanding any 
     other provision of law, the total amount of all obligations 
     under subsection (a) shall not exceed--
       ``(1) $97,999,999 for fiscal year 1998;
       ``(2) $101,000,000 for fiscal year 1999;
       ``(3) $104,000,000 for fiscal year 2000;
       ``(4) $107,000,000 for fiscal year 2001;
       ``(5) $110,000,000 for fiscal year 2002; and
       ``(6) $114,000,000 for fiscal year 2003.''.
                                 ______
                                 

                  LOTT (AND OTHERS) AMENDMENT NO. 1318

  Mr. LOTT (for himself, Mr. Chafee, and Mr. Warner) proposed an 
amendment to amendment No. 1317 proposed by Mr. Lott to the 
instructions of the motion to recommit the bill, S. 1173, supra; as 
follows:

       On page 44, strike line 6 and insert the following:
       (e) 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) $301,905,000 for fiscal year 1998;
       (2) $301,725,000 for fiscal year 1999;
       (3) $302,055,000 for fiscal year 2000;
       (4) $303,480,000 for fiscal year 2001;
       (5) $310,470,000 for fiscal year 2002; and
       (6) $320,595,000 for fiscal year 2003.
       (f) Applicability of Obligation Limitations.--
                                 ______
                                 

                        ROTH AMENDMENT NO. 1319

  (Ordered to lie on the table.)
  Mr. ROTH submitted an amendment intended to be proposed by him to the 
bill, S. 1173, supra; as follows:

       At the end of the bill add the following:
                          TITLE ____--REVENUE

     SEC. __001. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This title may be cited as the 
     ``Intermodal Surface Transportation Revenue Act of 1997''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     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, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

     SEC. __002. EXTENSION AND MODIFICATION OF HIGHWAY-RELATED 
                   TAXES AND TRUST FUND.

       (a) Extension of Taxes and Exemptions.--
       (1) The following provisions are each amended by striking 
     ``1999'' each place it appears and inserting ``2005'':
       (A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax 
     on certain buses).
       (B) Section 4041(a)(2)(B) (relating to rate of tax on 
     special motor fuels), as amended by section 907(a)(1) of the 
     Taxpayer Relief Act of 1997.
       (C) Section 4041(m)(1)(A) (relating to certain alcohol 
     fuels), as amended by section 907(b) of the Taxpayer Relief 
     Act of 1997.
       (D) Section 4051(c) (relating to termination).
       (E) Section 4071(d) (relating to termination).
       (F) Section 4081(d)(1) (relating to termination).
       (G) Section 4221(a) (relating to certain tax-free sales).
       (H) Section 4481(e) (relating to period tax in effect).
       (I) Section 4482(c)(4) (relating to taxable period).
       (J) Section 4482(d) (relating to special rule for taxable 
     period in which termination date occurs).
       (K) Section 4483(g) (relating to termination of 
     exemptions).
       (L) Section 6156(e)(2) (relating to section inapplicable to 
     certain liabilities).
       (M) Section 6412(a) (relating to floor stocks refunds).
       (2) The following provisions are each amended by striking 
     ``2000'' each place it appears and inserting ``2007'':
       (A) Section 4041(b)(2)(C) (relating to termination).
       (B) Section 4041(k)(3) (relating to termination).
       (C) Section 4081(c)(8) (relating to termination).
       (D) Section 4091(c)(5) (relating to termination).
       (3) Section 6412(a) (relating to floor stocks refunds) is 
     amended by striking ``2000'' each place it appears and 
     inserting ``2006''.
       (4) Section 6427(f)(4) (relating to termination) is amended 
     by striking ``1999'' and inserting ``2007''.
       (5) Section 40(e)(1) (relating to termination) is amended--
       (A) by striking ``December 31, 2000'' and inserting 
     ``December 31, 2007'', and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) of any fuel for any period before January 1, 2008, 
     during which the rate of tax under section 4081(a)(2)(A) is 
     4.3 cents per gallon.''.
       (6) Headings 9901.00.50 and 9901.00.52 of the Harmonized 
     Tariff Schedule of the United States (19 U.S.C. 3007) are 
     amended in the effective period column by striking ``10/1/
     2000'' each place it appears and inserting ``10/1/2007''.
       (b) Extension and Modification of Highway Trust Fund.--
       (1) Extension.--Section 9503 (relating to Highway Trust 
     Fund) is amended--
       (A) in subsection (b)--
       (i) in paragraph (1)--

       (I) by striking ``1999'' and inserting ``2005'',
       (II) by striking subparagraph (C),
       (III) in subparagraph (D), by striking ``and tread 
     rubber'', and

[[Page S10705]]

       (IV) by redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (C), (D), and (E), respectively,

       (ii) in paragraph (2), by striking ``1999'' each place it 
     appears and inserting ``2005'' and by striking ``2000'' and 
     inserting ``2006'',
       (iii) in the heading of paragraph (2), by striking 
     ``october 1, 1999'' and inserting ``october 1, 2005'', and
       (iv) in subparagraphs (E) and (F) of paragraph (4), as 
     amended by section 901(a) of the Taxpayer Relief Act of 1997, 
     by striking ``1999'' and inserting ``2005'', and
       (B) in subsection (c)--
       (i) in paragraph (1)--

       (I) by striking ``1997'' and inserting ``2003'',
       (II) in subparagraph (C), by striking ``or'' at the end,
       (III) in subparagraph (D), by striking ``1991.'' and 
     inserting ``1991, or'',
       (IV) by inserting after subparagraph (D) the following:

       ``(E) authorized to be paid out of the Highway Trust Fund 
     under the Intermodal Surface Transportation Efficiency Act of 
     1997.'', and

       (V) by striking the last sentence and inserting the 
     following:

     ``In determining the authorizations under the Acts referred 
     to in the preceding subparagraphs, such Acts shall be applied 
     as in effect on the date of the enactment of the Intermodal 
     Surface Transportation Efficiency Act of 1997.'',
       (ii) in paragraph (2)(A)(i)--

       (I) by striking ``2000'' and inserting ``2006'',
       (II) in subclause (II), by adding ``and'' at the end,
       (III) in subclause (IV), by striking ``1999'' and inserting 
     ``2005'', and
       (IV) by striking subclause (III) and redesignating 
     subclause (IV) as subclause (III),

       (iii) in paragraph (2)(A), by striking clause (ii) and 
     inserting the following:
       ``(ii) the credits allowed under section 34 (relating to 
     credit for certain uses of fuel) with respect to fuel used 
     before October 1, 2005.'',
       (iv) in paragraph (3)--

       (I) by striking ``July 1, 2000'' and inserting ``July 1, 
     2006'', and
       (II) by striking the heading and inserting ``Floor stocks 
     refunds'',

       (v) in paragraph (4)(A)(i), by striking ``1997'' and 
     inserting ``2003'', and
       (vi) in paragraph (5), by striking ``1997'' and inserting 
     ``2003''.
       (2) Limitation on expenditures.--
       (A) In general.--Section 9503(c) (relating to expenditures 
     from Highway Trust Fund), as amended by subsection (d)(2)(A), 
     is amended by inserting after paragraph (5) the following:
       ``(6) Limitation on expenditures from highway trust fund.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     no expenditure shall be made from the Highway Trust Fund 
     unless such expenditure is permitted under a provision of 
     this title. The determination of whether an expenditure is so 
     permitted shall be made without regard to--
       ``(i) any provision of law which is not contained or 
     referenced in this title and which is not contained or 
     referenced in a revenue Act, and
       ``(ii) whether such provision of law is a subsequently 
     enacted provision or directly or indirectly seeks to waive 
     the application of this paragraph.
       ``(B) Exception for prior obligations.--Subparagraph (A) 
     shall not apply to any expenditure to liquidate any contract 
     entered into, or for any amount otherwise obligated, in 
     accordance with the provisions of this section before October 
     1, 2003.''.
       (B) Transfer of taxes to trust fund terminated if 
     expenditure limitation violated.--Section 9503(b)(4) 
     (relating to certain taxes not transferred to Highway Trust 
     Fund), as amended by subsection (b)(1)(A)(iv), is amended--
       (i) in subparagraph (E), by striking ``or'' at the end,
       (ii) in subparagraph (F), by striking the period at the end 
     and inserting ``, or'', and
       (iii) by adding at the end the following:
       ``(G) any provision described in paragraph (1) on and after 
     the date of any expenditure not permitted by subsection 
     (c)(6).''.
       (c) Modification of Subsidies for Alcohol Fuels.--
       (1) In general.--Subsection (h) of section 40 (relating to 
     alcohol used as fuel) is amended to read as follows:
       ``(h) Reduced Credit for Ethanol Blenders.--
       ``(1) In general.--In the case of any alcohol mixture 
     credit or alcohol credit with respect to any sale or use of 
     alcohol which is ethanol during calendar years 2001 through 
     2007--
       ``(A) subsections (b)(1)(A) and (b)(2)(A) shall be applied 
     by substituting `the blender amount' for `60 cents',
       ``(B) subsection (b)(3) shall be applied by substituting 
     `the low-proof blender amount' for `45 cents' and `the 
     blender amount' for `60 cents', and
       ``(C) subparagraphs (A) and (B) of subsection (d)(3) shall 
     be applied by substituting `the blender amount' for `60 
     cents' and `the low-proof blender amount' for `45 cents'.
       ``(2) Amounts.--For purposes of paragraph (1), the blender 
     amount and the low-proof blender amount shall be determined 
     in accordance with the following table:


                                                                        
                                                          The low-proof 
   In the case of any sale or use       The blender      blender amount 
       during calendar year:             amount is:            is:      
                                                                        
2001 or 2002.......................  53 cents           39.26 cents     
2003 or 2004.......................  52 cents           38.52 cents     
2005, 2006, or 2007................  51 cents           37.78 cents.''. 
                                                                        

       (2) Conforming amendments.--
       (A) Section 4041(b)(2) is amended--
       (i) in subparagraph (A)(i), by striking ``5.4 cents'' and 
     inserting ``the applicable blender rate'', and
       (ii) by redesignating subparagraph (C), as amended by 
     subsection (a)(2)(A), as subparagraph (D) and by inserting 
     after subparagraph (B) the following:
       ``(C) Applicable blender rate.--For purposes of 
     subparagraph (A)(i), the applicable blender rate is--
       ``(i) except as provided in clause (ii), 5.4 cents, and
       ``(ii) for sales or uses during calendar years 2001 through 
     2007, \1/10\ of the blender amount applicable under section 
     40(h)(2) for the calendar year in which the sale or use 
     occurs.''.
       (B) Subparagraph (A) of section 4081(c)(4) is amended to 
     read as follows:
       ``(A) General rules.--
       ``(i) Mixtures containing ethanol.--Except as provided in 
     clause (ii), in the case of a qualified alcohol mixture which 
     contains gasoline, the alcohol mixture rate is the excess of 
     the rate which would (but for this paragraph) be determined 
     under subsection (a) over--

       ``(I) in the case of 10 percent gasohol, the applicable 
     blender rate (as defined in section 4041(b)(2)(A)) per 
     gallon,
       ``(II) in the case of 7.7 percent gasohol, the number of 
     cents per gallon equal to 77 percent of such applicable 
     blender rate, and
       ``(III) in the case of 5.7 percent gasohol, the number of 
     cents per gallon equal to 57 percent of such applicable 
     blender rate.

       ``(ii) Mixtures not containing ethanol.--In the case of a 
     qualified alcohol mixture which contains gasoline and none of 
     the alcohol in which consists of ethanol, the alcohol mixture 
     rate is the excess of the rate which would (but for this 
     paragraph) be determined under subsection (a) over--

       ``(I) in the case of 10 percent gasohol, 6 cents per 
     gallon,
       ``(II) in the case of 7.7 percent gasohol, 4.62 cents per 
     gallon, and
       ``(III) in the case of 5.7 percent gasohol, 3.42 cents per 
     gallon.''.

       (C) Section 4081(c)(5) is amended by striking ``5.4 cents'' 
     and inserting ``the applicable blender rate (as defined in 
     section 4041(b)(2)(C))''.
       (D) Section 4091(c)(1) is amended by striking ``13.4 
     cents'' each place it appears and inserting ``the applicable 
     blender amount'' and by adding at the end the following new 
     sentence: ``For purposes of this paragraph, the term 
     `applicable blender amount' means 13.3 cents in the case of 
     any sale or use during 2001 or 2002, 13.2 cents in the case 
     of any sale or use during 2003 or 2004, 13.1 cents in the 
     case of any sale or use during 2005, 2006, or 2007, and 13.4 
     cents in the case of any sale or use during 2008 or 
     thereafter.''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on January 1, 2001.
       (d) Elimination of National Recreational Trails Trust 
     Fund.--
       (1) In general.--Section 9511 (relating to National 
     Recreational Trails Trust Fund) is repealed.
       (2) Conforming amendments.--
       (A) Section 9503(c) is amended by striking paragraph (6).
       (B) The table of sections for subchapter A of chapter 98 is 
     amended by striking the item relating to section 9511.
       (e) Aquatic Resources Trust Fund.--
       (1) Extension.--Section 9504(c) (relating to expenditures 
     from Boat Safety Account) is amended--
       (A) by striking ``1998'' and inserting ``2004'', and
       (B) by striking ``1988'' and inserting ``the date of the 
     enactment of the Intermodal Surface Transportation Efficiency 
     Act of 1997''.
       (2) Limitation on expenditures.--Section 9504 (relating to 
     Aquatic Resources Trust Fund) is amended by redesignating 
     subsection (d) as subsection (e) and by inserting after 
     subsection (c) the following:
       ``(d) Limitation on Expenditures from Trust Fund.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     expenditure shall be made from the Aquatics Resources Trust 
     Fund unless such expenditure is permitted under a provision 
     of this title. The determination of whether an expenditure is 
     so permitted shall be made without regard to--
       ``(A) any provision of law which is not contained or 
     referenced in this title and which is not contained or 
     referenced in a revenue Act, and
       ``(B) whether such provision of law is a subsequently 
     enacted provision or directly or indirectly seeks to waive 
     the application of this subsection.

[[Page S10706]]

       ``(2) Exception for prior obligations from the boat safety 
     account.--Paragraph (1) shall not apply to any expenditure to 
     liquidate any contract entered into, or for any amount 
     otherwise obligated, in accordance with the provisions of 
     subsection (c) before April 1, 2004.
       ``(3) Transfer of taxes to trust fund terminated if 
     expenditure limitation violated.--For purposes of the second 
     sentence of subsection (a)(2), there shall not be taken into 
     account any amount described in subsection (b)(1), section 
     9503(c)(4), or section 9503(c)(5)(A) on and after the date of 
     any expenditure not permitted by paragraph (1).''.
       (3) Conforming amendments.--Section 9504(b)(2) is amended--
       (A) in subparagraph (A), by striking ``1988'' and inserting 
     ``the date of the enactment of the Intermodal Surface 
     Transportation Efficiency Act of 1997'', and
       (B) in subparagraph (B), by striking ``1990'' and inserting 
     ``the date of the enactment of the Intermodal Surface 
     Transportation Efficiency Act of 1997''.

     SEC. __003. MASS TRANSIT ACCOUNT.

       (a) In General.--Section 9503(e)(3) (relating to 
     expenditures from Account) is amended--
       (1) by striking ``1997'' and inserting ``2003'',
       (2) in subparagraph (A), by striking ``or'' at the end,
       (3) in subparagraph (B), by adding ``or'' at the end,
       (4) by inserting after subparagraph (B) the following:
       ``(C) the Intermodal Surface Transportation Efficiency Act 
     of 1997,'', and
       (5) by striking ``Intermodal Surface Transportation 
     Efficiency Act of 1991'' the second place it appears and 
     inserting ``Intermodal Surface Transportation Efficiency Act 
     of 1997''.
       (b) Conforming Amendment.--Paragraph (4) of section 9503(e) 
     is amended to read as follows:
       ``(4) Limitation.--Rules similar to the rules of subsection 
     (d) shall apply to the Mass Transit Account.''.
       (c) Technical Correction.--
       (1) In general.--Section 9503(e)(2) is amended by striking 
     the last sentence and inserting the following: ``For purposes 
     of the preceding sentence, the term `mass transit portion' 
     means, for any fuel with respect to which tax was imposed 
     under section 4041 or 4081 and otherwise deposited into the 
     Highway Trust Fund, the amount determined at the rate of--
       ``(A) except as otherwise provided in this sentence, 2.86 
     cents per gallon,
       ``(B) 1.77 cents per gallon in the case of any partially 
     exempt methanol or ethanol fuel (as defined in section 
     4041(m)) none of the alcohol in which consists of ethanol,
       ``(C) 1.86 cents per gallon in the case of liquefied 
     natural gas,
       ``(D) 2.13 cents per gallon in the case of liquefied 
     petroleum gas, and
       ``(E) 9.71 cents per MCF (determined at standard 
     temperature and pressure) in the case of compressed natural 
     gas.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect as if included in the amendment made by 
     section 901(b) of the Taxpayer Relief Act of 1997.

     SEC. __004. TAX-EXEMPT FINANCING OF QUALIFIED HIGHWAY 
                   INFRASTRUCTURE CONSTRUCTION.

       (a) Treatment as Exempt Facility Bond.--A bond described in 
     subsection (b) shall be treated as described in section 
     141(e)(1)(A) of the Internal Revenue Code of 1986, except 
     that--
       (1) section 146 of such Code shall not apply to such bond, 
     and
       (2) section 147(c)(1) of such Code shall be applied by 
     substituting ``any portion of'' for ``25 percent or more''.
       (b) Bond Described.--
       (1) In general.--A bond is described in this subsection if 
     such bond is issued after the date of the enactment of this 
     Act as part of an issue--
       (A) 95 percent or more of the net proceeds of which are to 
     be used to provide a qualified highway infrastructure 
     project, and
       (B) to which there has been allocated a portion of the 
     allocation to the project under paragraph (2)(C)(ii) which is 
     equal to the aggregate face amount of bonds to be issued as 
     part of such issue.
       (2) Qualified highway infrastructure projects.--
       (A) In general.--For purposes of paragraph (1), the term 
     ``qualified highway infrastructure project'' means a 
     project--
       (i) for the construction or reconstruction of a highway, 
     and
       (ii) designated under subparagraph (B) as an eligible pilot 
     project.
       (B) Eligible pilot project.--
       (i) In general.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall select 
     not more than 15 highway infrastructure projects to be pilot 
     projects eligible for tax-exempt financing.
       (ii) Eligibility criteria.--In determining the criteria 
     necessary for the eligibility of pilot projects, the 
     Secretary of Transportation shall include the following:

       (I) The project must serve the general public.
       (II) The project is necessary to evaluate the potential of 
     the private sector's participation in the provision of the 
     highway infrastructure of the United States.
       (III) The project must be located on publicly-owned rights-
     of-way.
       (IV) The project must be publicly owned or the ownership of 
     the highway constructed or reconstructed under the project 
     must revert to the public.
       (V) The project must be consistent with a transportation 
     plan developed pursuant to section 134(g) or 135(e) of title 
     23, United States Code.

       (C) Aggregate face amount of tax-exempt financing.--
       (i) In general.--The aggregate face amount of bonds issued 
     pursuant to this section shall not exceed $15,000,000,000, 
     determined without regard to any bond the proceeds of which 
     are used exclusively to refund (other than to advance refund) 
     a bond issued pursuant to this section (or a bond which is a 
     part of a series of refundings of a bond so issued) if the 
     amount of the refunding bond does not exceed the outstanding 
     amount of the refunded bond.
       (ii) Allocation.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall 
     allocate the amount described in clause (i) among the 
     eligible pilot projects designated under subparagraph (B).
       (iii) Reallocation.--If any portion of an allocation under 
     clause (ii) is unused on the date which is 3 years after such 
     allocation, the Secretary of Transportation, in consultation 
     with the Secretary of the Treasury, may reallocate such 
     portion among the remaining eligible pilot projects.
       (c) Report.--
       (1) In general.--Not later than the earlier of--
       (A) 1 year after either \1/2\ of the projects authorized 
     under this section have been identified or \1/2\ of the total 
     bonds allowable for the projects under this section have been 
     issued, or
       (B) 7 years after the date of the enactment of this Act,

     the Secretary of Transportation, in consultation with the 
     Secretary of the Treasury, shall submit the report described 
     in paragraph (2) to the Committees on Finance and on 
     Environment and Public Works of the Senate and the Committees 
     on Ways and Means and on Transportation and Infrastructure of 
     the House of Representatives.
       (2) Contents.--The report under paragraph (1) shall 
     evaluate the overall success of the program conducted 
     pursuant to this section, including--
       (A) a description of each project under the program,
       (B) the extent to which the projects used new technologies, 
     construction techniques, or innovative cost controls that 
     resulted in savings in building the project, and
       (C) the use and efficiency of the Federal tax subsidy 
     provided by the bond financing.

     SEC. __005. REPEAL OF 1.25 CENT TAX RATE ON RAIL DIESEL FUEL.

       (a) In General.--Section 4041(a)(1)(C)(ii) (relating to 
     rate of tax on trains) is amended--
       (1) in subclause (II), by striking ``October 1, 1999'' and 
     inserting ``May 16, 1999'', and
       (2) in subclause (III), by striking ``September 30, 1999'' 
     and inserting ``May 15, 1999''.
       (b) Conforming Amendments.--
       (1) Section 6421(f)(3)(B) is amended--
       (A) in clause (ii), by striking ``October 1, 1999'' and 
     inserting ``May 16, 1999'', and
       (B) in clause (iii), by striking ``September 30, 1999'' and 
     inserting ``May 15, 1999''.
       (2) Section 6427(l)(3)(B) is amended--
       (A) in clause (ii), by striking ``October 1, 1999'' and 
     inserting ``May 16, 1999'', and
       (B) in clause (iii), by striking ``September 30, 1999'' and 
     inserting ``May 15, 1999''.

     SEC. __006. ELECTION TO RECEIVE TAXABLE CASH COMPENSATION IN 
                   LIEU OF NONTAXABLE QUALIFIED TRANSPORTATION 
                   FRINGE BENEFITS.

       (a) In General.-- Paragraph (4) of section 132(f) (relating 
     to qualified transportation fringe) is amended to read as 
     follows:
       ``(4) No constructive receipt.--No amount shall be included 
     in the gross income of an employee solely because the 
     employee may choose between any qualified transportation 
     fringe and compensation which would otherwise be includible 
     in gross income of such employee.''.
       (b) Increase in maximum exclusion for employer-provided 
     transit passes.--
       (1) In general.--Subparagraph (A) of section 132(f)(2) 
     (relating to limitation on exclusion) is amended by striking 
     ``$60'' and inserting ``$100''.
       (2) Inflation adjustment.--Paragraph (6) of section 132(f) 
     (relating to qualified transportation fringe) is amended to 
     read as follows:
       ``(6) Inflation adjustment.--
       ``(A) Adjustment to qualified parking limitation.--In the 
     case of any taxable year beginning in a calendar year after 
     1993, the dollar amount contained in paragraph (2)(B) shall 
     be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins.
       ``(B) Adjustment to other qualified transportation fringes 
     limitation.--In the case of any taxable year beginning in a 
     calendar year after 2003, the dollar amount contained in 
     paragraph (2)(A) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2002' for 
     `calendar year 1992'.

[[Page S10707]]

       ``(c) Rounding.--If any increase determined under 
     subparagraph (A) or (B) is not a multiple of $5, such 
     increase shall be rounded to the next lowest multiple of 
     $5.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.

     SEC. __007. TAX TREATMENT OF CERTAIN FEDERAL PARTICIPATION 
                   PAYMENTS.

       For purposes of the Internal Revenue Code of 1986, with 
     respect to any Federal participation payment to a taxpayer in 
     any taxable year made under section 149(e) of title 23, 
     United States Code, as added by section 1502, to the extent 
     such payment is not subject to tax under such Code for the 
     taxable year--
       (1) no credit or deduction (other than a deduction with 
     respect to any interest on a loan) shall be allowed to the 
     taxpayer with respect to any property placed in service or 
     other expenditure that is directly or indirectly attributable 
     to the payment, and
       (2) the basis of any such property shall be reduced by the 
     portion of the cost of the property that is attributable to 
     the payment.

  Mr. ROTH. Mr. President, I ask unanimous consent that additional 
material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   TECHNICAL EXPLANATION OF THE ``INTERMODAL SURFACE TRANSPORTATION 
   REVENUE ACT OF 1997'' RELATING TO EXTENSION OF HIGHWAY TRUST FUND 
             EXCISE TAXES AND HIGHWAY TRUST FUND PROVISIONS

                       I. Legislative Background

     Highway Trust Fund Authorizations
       S. 1173, the ``Intermodal Transportation Act of 1997,'' was 
     ordered reported by the Senate Committee on Environment and 
     Public Works on September 17, 1997, and the report was filed 
     on October 1, 1997 (S. Rept. 105-95). S. 1173 would extend 
     expenditure authorizations for the Highway Trust Fund (the 
     ``Highway Fund'') for 6 years, from October 1, 1997 through 
     September 30, 2003, and make various modifications to the 
     highway programs financed through the Highway Fund. The 
     Highway Fund is funded with amounts equivalent to revenues 
     from certain excise taxes on motor fuels and on heavy trucks 
     and tires. These excise taxes currently are scheduled to 
     expire after September 30, 1999. The provisions dedicating 
     revenues from these excise taxes to the Highway Fund, 
     relevant expenditure provisions governing the purposes for 
     which Highway Fund monies may be spent, and the period when 
     those expenditures may occur are contained in the Internal 
     Revenue Code (the ``Code''). The Highway Fund expenditure 
     authority expired after September 30, 1997.
       The Senate Committee on Banking, Housing, and Urban Affairs 
     (``Banking'') and the Committee on Commerce, Science, and 
     Transportation (``Commerce'') have been requested to approve 
     Highway Fund-related authorization provisions within their 
     respective jurisdictions. The Senate Banking Committee marked 
     up mass transit authorizations on September 25, 1997. 
     Provisions adopted by these Committees are expected to be 
     incorporated into S. 1173 when that bill is considered by the 
     Senate.
     Revenue Provisions
       The Committee on Finance has been requested to provide a 
     revenue title to S. 1173. The Committee on Finance was 
     requested to include provisions in the revenue title 
     extending the period when the highway excise taxes are 
     imposed and when Highway Fund monies can be spent, and 
     conforming the purposes for which Highway Fund monies can be 
     spent to those authorized under S. 1173.
       On October 1, 1997, the Committee on Finance marked up a 
     revenue title to be offered as an amendment (``Committee 
     amendment'') to S. 1173. The Committee amendment was approved 
     by voice vote.

                 II. Explanation of Committee Amendment


                             A. Present Law

     1. Highway Trust Fund Excise Taxes and Other Related Tax 
         Provisions
     Highway transportation excise taxes
       The current highway transportation excise taxes consist of:
       (1) taxes on gasoline, diesel fuel, kerosene, and special 
     motor fuels;
       (2) a retail sales tax imposed on trucks and trailers 
     having gross vehicle weights in excess of prescribed 
     thresholds;
       (3) a tax on manufacturers of tires designed for use on 
     heavy highway vehicles; and
       (4) an annual use tax imposed on trucks and tractors having 
     taxable gross weights in excess of prescribed thresholds.
       Special motor fuels include liquefied natural gas 
     (``LNG''), benzol, naphtha, liquefied petroleum gas (e.g., 
     propane), natural gasoline, and any other liquid (e.g., 
     ethanol and methanol) other than gasoline or diesel fuel. 
     Compressed natural gas (``CNG'') also is subject to tax as a 
     special motor fuel, but at a lower rate than other special 
     motor fuels.
       With the exception of 4.3 cents per gallon of the motor 
     fuels excise tax rates, these taxes are scheduled to expire 
     after September 30, 1999.
       Highway motor fuels taxes
       The current highway motor fuels excise tax rates are shown 
     in Table 1.

TABLE 1.--FEDERAL HIGHWAY TRUST FUND MOTOR FUELS EXCISE TAX RATES, AS OF
                             OCTOBER 1, 1997                            
                    [Rates shown in cents per gallon]                   
------------------------------------------------------------------------
                                                                   Tax  
                          Highway Fuel                             Rate 
-------------------------------------------------------------------\2\--
Gasoline \3\...................................................     18.3
Diesel fuel \4\................................................     24.3
Special motor fuels generally..................................  \5\ 18.
                                                                       3
CNG............................................................  \6\ 4.3
------------------------------------------------------------------------
\1\ The rates shown include the 4.3-cents-per-gallon tax rate which is  
  transferred to the Highway Fund beginning on October 1, 1997, pursuant
  to the Taxpayer Relief Act of 1997.                                   
\2\ Effective on October 1, 1997, an additional 0.1-cent-per-gallon rate
  is imposed on these motor fuels to finance the Leaking Underground    
  Storage Tank Trust Fund.                                              
\3\ Gasoline used in motorboats and in certain off-highway recreational 
  vehicles and small engines is subject to tax in the same manner and at
  the same rates as gasoline used in highway vehicles. 6.8 cents per    
  gallon of the revenues from the tax on gasoline used in these uses is 
  retained in the General Fund; the remaining 11.5 cents per gallon is  
  deposited in the Aquatic Resources Trust Fund (motorboat and small    
  engine gasoline), the Land and Water Conservation Fund ($1 million of 
  motorboat gasoline tax revenues), and the National Recreational Trails
  Trust Fund (the ``Trails Trust Fund'') (off-highway recreational      
  vehicles).                                                            
\4\ Kerosene is taxed at the same rate as diesel fuel.                  
\5\ The rate is 13.6 cents per gallon for propane, 11.9 cents per gallon
  for liquefied natural gas, and 11.3 cents per gallon for methanol fuel
  from natural gas, in each case based on the relative energy           
  equivalence of the fuel to gasoline.                                  
\6\ The statutory rate is 48.54 cents per thousand cubic feet (``MCF'').

       Present law includes numerous exemptions (including partial 
     exemptions for specified uses of taxable fuels or for 
     specified fuels) typically for governments or for uses not 
     involving use of (and thereby change to) the highway system. 
     Because the gasoline and diesel fuel taxes generally are 
     imposed before the end use of the fuel is known, many of 
     these exemptions are realized through refunds to end users of 
     tax paid by a party that processed the fuel earlier in the 
     distribution chain. These exempt uses and fuels include:
       (1) use in State and local government and nonprofit 
     educational organization vehicles;
       (2) use in buses engaged in transporting students and 
     employees of schools;
       (3) use in private local mass transit buses having a 
     seating capacity of at least 20 adults (not including the 
     driver) when the buses operate under contract with (or are 
     subsidized by) a State or local governmental unit;
       (4) use in private intercity buses serving the general 
     public along scheduled routes (totally exempt from the 
     gasoline tax and exempt from 17 cents per gallon of the 
     diesel tax); and
       (5) use in off-highway uses such as farming.
       LNG, propane, CNG, and methanol derived from natural gas 
     are subject to reduced tax rates based on the energy 
     equivalence of these fuels to gasoline.
       Ethanol and methanol derived from renewable sources (e.g., 
     biomass) are eligible for income tax benefits (the ``alcohol 
     fuels credit'') equal to 54 cents per gallon (ethanol) and 60 
     cents per gallon (methanol). 1 In addition, small 
     ethanol producers are eligible for a separate 10-cents-per-
     gallon credit. 2 The 54-cents-per-gallon ethanol 
     and 60-cents-per-gallon renewable source methanol tax credits 
     may be claimed through reduced excise taxes paid on gasoline 
     and special motor fuels as well as through credits against 
     income tax. 3
---------------------------------------------------------------------------
     \1\ The alcohol fuels credit is scheduled to expire after 
     December 31, 2000, or earlier, if the Highway Fund excise 
     taxes actually expire before that date.
     \2\ The small ethanol producer credit is available on up to 
     15 million gallons of ethanol produced by persons whose 
     annual production capacity does not exceed 30 million 
     gallons.
     \3\ Authority to claim the ethanol and renewable source 
     methanol tax benefits through excise tax reductions is 
     scheduled to expire after September 30, 2000 (or earlier, if 
     the underlying excise taxes actually expire before September 
     30, 2000).
---------------------------------------------------------------------------


                   Non-fuel Highway Fund excise taxes

       In addition to the highway motor fuels excise tax revenues, 
     the Highway Fund receives revenues produced by three excise 
     taxes imposed exclusively on heavy highway vehicles or tires. 
     These taxes are:
       (1) A 12-percent excise tax imposed on the first retail 
     sale of highway vehicles, tractors, and trailers (generally, 
     trucks having a gross vehicle weight in excess of 33,000 
     pounds and trailers having such a weight in excess of 26,000 
     pounds);
       (2) An excise tax imposed at graduated rates on highway 
     tires weighing more than 40 pounds; and
       (3) An annual use tax imposed on highway vehicles having a 
     taxable gross weight of 55,000 pounds or more. (The maximum 
     rate for this tax is $550 per year, imposed on vehicles 
     having a taxable gross weight over 75,000 pounds.)
     Excise tax on diesel fuel used in rail transportation
       Diesel fuel used in trains is subject to a 5.65-cents-per-
     gallon excise tax. Of this amount, 0.1 cent per gallon is 
     dedicated to the Leaking Underground Storage Tank Trust Fund; 
     this rate is scheduled to expire after March 31, 2005. The 
     remaining 5.55 cents per gallon is a General Fund tax, with 
     4.3 cents per gallon being permanently imposed and 1.25 cents 
     per gallon being imposed through September 30, 1999.
     Tax-exempt State or local government-bonds
       Present law exempts interest on State or local government 
     bonds from the regular income tax if the proceeds of the 
     bonds are used to finance governmental activities of those 
     entities and the bonds are repaid with governmental revenues. 
     Interest on bonds issued by States or local governments 
     acting as conduits to provide financing for private persons 
     is taxable unless a specific exception is provided in the 
     Code. No such exception is provided for bonds issued to 
     provide conduit financing for privately constructed and/or 
     privately operated toll roads and similar highway 
     infrastructure projects.

[[Page S10708]]

     Exclusion from income for employer-provided transportation 
         benefits
       Under present law, up to $170 per month of employer-
     provided parking is excludable from gross income and wages 
     for employment tax purposes. Effective with respect to 
     taxable years beginning after December 31, 1997, no amount is 
     includible in income or wages merely because an employer 
     offers an employee a choice between cash and employer-
     provided parking. The amount of cash offered is includible in 
     income only if the employee chooses the cash instead of 
     parking. If an employee chooses parking, the value of the 
     parking is excludable from income as under present law. 
     Employees may exclude a maximum of $65 per month from gross 
     income for the value of employer-provided transit passes or 
     vanpooling in an employer-provided vehicle. In order for the 
     exclusion to apply, the employer-provided transit passes and 
     vanpooling must be provided in addition to and not in lieu of 
     any compensation that is otherwise payable to the employee.
     2. Highway Trust Fund Expenditure Provisions
     In general
       Dedication of excise tax revenues to the Highway Fund and 
     expenditures from the Highway Fund are governed by provisions 
     of the Code (sec. 9503). 4 Under present law, 
     revenues from the highway excise taxes, as imposed through 
     September 30, 1999, are dedicated to the Highway Fund. Also, 
     the Highway Fund earns interest on its cash balances each 
     year from investments in Treasury securities. Further, the 
     Code authorizes expenditures (subject to appropriations) from 
     the Fund through September 30, 1997, for the purposes 
     provided in authorizing legislation, as in effect on the date 
     of enactment of the Intermodal Surface Transportation 
     Efficiency Act of 1991.
---------------------------------------------------------------------------
     \4\  The Highway Trust Fund statutory provisions were placed 
     in the Internal Revenue Code in 1982.
---------------------------------------------------------------------------
       Highway Fund provisions also govern transfer of 11.5 cents 
     per gallon of the revenues from the tax imposed on gasoline 
     used in motorboats, small engines, and off-highway 
     recreational vehicles. Those revenues are transferred from 
     the Highway Fund (after being received from the General Fund) 
     to the Aquatic Resources Trust Fund, the Land and Water 
     Conservation Fund, and the National Recreational Trails Trust 
     Fund, respectively, through September 30, 1997.
     Present-law Highway Fund expenditure purposes
       Overview
       The Highway Fund is divided into two accounts, a Highway 
     Account and a Mass Transit Account, each of which is the 
     funding source for specific programs.
       Highway and Mass Transit Account expenditure purposes have 
     been revised with passage of each authorization Act enacted 
     since establishment of the Highway Trust Fund in 1956. In 
     general, expenditures authorized under those Acts (as the 
     Acts were in effect on the date of enactment of the most 
     recent such authorizing Act) are approved Highway Fund 
     expenditure purposes. 5 Authority to make 
     expenditures from the Highway Fund expired after September 
     30, 1997. Thus, no Highway Fund monies may be spent for a 
     purpose not approved by the tax-writing committees of 
     Congress. Further, no Highway Fund expenditures may occur 
     after September 30, 1997, without such approval.
---------------------------------------------------------------------------
     \5\  The authorizing Acts which currently are referenced in 
     the Highway Trust Fund are the Highway Revenue Act of 1956, 
     Titles I and II of the Surface Transportation Assistance Act 
     of 1982, the Surface Transportation and Uniform Relocation 
     Act of 1987, and the Intermodal Surface Transportation 
     Efficiency Act of 1991.
---------------------------------------------------------------------------
       Highway Fund spending further is limited by two, internal 
     to the Highway Fund, anti- deficit provisions. The first of 
     these provisions limits the unfunded Highway Account 
     authorizations at the end of any fiscal year to amounts not 
     exceeding revenues projected to be collected for that Account 
     by the dedicated excise taxes during the two following fiscal 
     years. The second anti-deficit provision similarly limits 
     unfunded Mass Transit Account authorizations to the dedicated 
     excise taxes expected to be collected during the next fiscal 
     year. Because of these two provisions, the highway 
     transportation excise taxes typically are scheduled to expire 
     at least two years after current authorizing Acts. If either 
     of these provisions is violated, spending for specified 
     programs funded by the relevant Trust Fund Account is to be 
     reduced proportionately, in much the same manner as would 
     occur under a general Budget Act sequester.
       Highway Account
       The Highway Fund's Highway Account receives revenues from 
     all non-fuel highway transportation excise taxes and revenues 
     from all but 2.85 cents per gallon (2.0 cents prior to 
     October 1, 1997) of the highway motor fuels excise taxes. 
     Programs financed from the Highway Account include 
     expenditures for the following general purposes:
       (1) Federal-aid highways, including the Interstate System, 
     National Highway System, parkways and park roads, forest and 
     public lands highways, Indian reservation roads, scenic 
     highways, and certain overseas highways (includes 
     construction and planning);
       (2) Highway resurfacing and repair;
       (3) Bridge replacement and repair;
       (4) Surface transportation programs;
       (5) Congestion mitigation and air quality improvement;
       (6) Highway safety programs and research and development, 
     including a share of the cost of National Highway Traffic 
     Safety Administration (``NHTSA'') programs and university 
     research centers;
       (7) Transportation research, technology, and training;
       (8) Traffic control grants and traffic control signal 
     projects;
       (9) Intermodal urban projects and mass transit (including 
     carpool and vanpool) grants;
       (10) Magnetic levitation technology deployment;
       (11) Intelligent transportation systems;
       (12) Certain administrative costs of the Federal Highway 
     Administration and NHTSA;
       (13) Grants to the Internal Revenue Service for motor fuels 
     tax and highway use tax enforcement activities;
       (14) Wetlands and other habitat mitigation; and
       (15) Certain other highway and transit-related programs 
     (including bicycle pathways and pedestrian walkways and 
     fringe and corridor parking facilities).
       Mass Transit Account
       The Highway Fund's Mass Transit Account receives revenues 
     equivalent to 2.85 cents per gallon (2.0 cents prior to 
     October 1, 1997) of the highway motor fuels excise taxes. 
     Mass Transit Account monies are available through September 
     30, 1997, for capital and capital-related expenditures under 
     sections 5338 (a)(1) and (b)(1) of Title 49, United States 
     Code, or the Intermodal Surface Transportation Efficiency Act 
     of 1991.
       The capital and capital-related mass transit programs 
     include new rail or busway facilities, rail rolling stock, 
     buses, improvement and maintenance of existing rail and other 
     fixed guideway systems, and upgrading of bus systems.
     Transfers from Highway Fund to National Recreational Trails 
         Trust Fund
       The National Recreational Trails Trust Fund (``Trails 
     Fund'') was established in the Intermodal Surface 
     Transportation Act of 1991 (``1991 Act''). Amounts are 
     authorized to be transferred from the Highway Fund into the 
     Trails Fund equivalent to revenues received from ``nonhighway 
     recreational fuel taxes'' (not to exceed $30 million per year 
     under an obligational ceiling set in the 1991 Act), subject 
     to amounts actually being appropriated to the Trails Fund. No 
     monies have been transferred to date, since no amounts have 
     been appropriated to the Trails Fund. The authority to 
     transfer revenues to the Trails Fund expired after September 
     30, 1997.
       Nonhighway recreational fuels taxes are the taxes imposed 
     (to the extent attributable to the 11.5 cents per gallon 
     rate) on (1) fuel used in vehicles and equipment on 
     recreational trails or back country terrain, or (2) fuel used 
     in camp stoves and other outdoor recreational equipment. Such 
     revenues do not include small-engine gasoline tax revenues 
     which are transferred to the Aquatic Resources Trust Fund.
       Expenditures are authorized from the Trails Fund, subject 
     to appropriations, for allocations to States for use on 
     trails and trail-related projects as set forth in the 1991 
     Act. Authorized uses include (1) acquisition of new trails 
     and access areas, (2) maintenance and restoration of existing 
     trails, (3) State environmental protection education 
     programs, and (4) program administrative costs.


            B. Summary of S. 1173 Trust Fund Authorizations

       S. 1173 would extend authorizations for Highway Fund 
     expenditures for six years, fiscal years 1998-2003. S. 1173 
     also would modify the expenditure purposes of the Highway 
     Fund as described below. As reported by the Committee on 
     Environment and Public Works (``Environment and Public 
     Works''), S. 1173 contains no revenue provisions or other 
     Code amendments.\6\
---------------------------------------------------------------------------
     \6\ See below for mention of authorization of amounts from 
     the Highway Account for grants to the Internal Revenue 
     Service for motor fuel tax evasion projects and motor fuel 
     tax reporting system.
---------------------------------------------------------------------------
     Highway Account Authorizations Under S. 1173
       S. 1173, as reported by Environment and Public Works, would 
     provide Highway Trust Fund (Highway Account) authorizations 
     totaling $145.3 billion for the 6-year period, fiscal years 
     1998-2003.
       New Highway Account expenditure programs under S. 1173 
     include the following:
---------------------------------------------------------------------------
     \7\ A ``trail'' is a thoroughfare or track across land or 
     snow used for recreational purposes, such as pedestrian 
     activities, skating or skateboarding, equestrian activities, 
     skiing, bicycling, aquatic activities, and motorized 
     vehicular activities (including all-terrain vehicles, 
     motorcycles, snowmobiles, off-road vehicles). Eligible 
     expenses include costs of State administration of the program 
     and educational programs to promote trail safety and 
     environmental protection.
---------------------------------------------------------------------------


                              6-year total


                                                             (millions)
Recreational trails program \7\..................................$119.0
Motor fuel excise tax reporting system.............................20.0
International border crossing planning incentive grants.............8.4
International trade corridor planning incentive grants.............18.0
Infrastructure financing (loans, loan guarantees, credit lines, 
  including State infrastructure banks)...........................470.0
Safety grants for seat belt use...................................470.0

[[Page S10709]]

Wetland restoration pilot program (where mitigation has not been 
  performed)......................................................100.0
Transportation and community and system preservation pilot program 
  (research and planning regarding relationships between transportation 
  and community and environment preservation).....................120.0

       The bill would extend for 6 years (at $5 million per year) 
     the current authorization from the Highway Account for funds 
     to the Internal Revenue Service and the States for highway 
     use tax evasion projects.
       Other Highway Account safety program authorizations are to 
     be marked up by the Senate Committee on Commerce, Science, 
     and Transportation, and are expected to be offered as an 
     amendment to S. 1173 when the bill goes to the Senate Floor.
     Mass Transit Account Authorizations Under S. 1173
       The Senate Committee on Banking, Housing, and Urban Affairs 
     (``Banking'') marked up mass transit authorizations on 
     September 25, 1997. These provisions are expected to be added 
     to S. 1173, and include $31.6 billion authorized from the 
     Mass Transit Account of the Highway Fund and $4.1 billion 
     from the General Fund over the 6-year period, fiscal years 
     1998-2003.
       The Banking Committee amendment would authorize a new clean 
     fuels grant program to be financed one-half from the Mass 
     Transit Account ($100 million per year) and one-half from the 
     General Fund ($100 million per year). The clean fuels program 
     includes grants to purchase or lease clean fuel vehicles or 
     hybrid transit vehicles, construction or leasing of clean 
     fuel vehicle fueling or electrical recharging facilities and 
     equipment, improvements of existing transit facilities to 
     accommodate clean fuel vehicles, incremental costs of 
     biodiesel fuel, and projects relating to clean fuel, 
     biodiesel, hybrid electric or zero emissions technology 
     vehicles that exhibit equivalent or superior emissions 
     reductions to existing clean fuel or hybrid electric 
     technologies.


                      C. Explanation of Provisions

     1. Highway Fund provisions
       a. Extension of existing Highway Fund excise taxes
       Under the Committee amendment, the scheduled expiration 
     date of the current Highway Fund excise taxes on motor fuels 
     and heavy highway vehicles and tires is extended for six 
     years, from September 30, 1999 through September 30, 2005.
       b. Extension and modification of ethanol tax provisions
       The current tax benefits for ethanol and renewable source 
     methanol are extended for seven years from their currently 
     scheduled expiration dates; the ethanol benefits are modified 
     to reduce the benefit levels during the extension period. The 
     modified ethanol benefit levels are as follows: 2001 and 
     2002--53 cents per gallon; 2003 and 2004--52 cents per 
     gallon; and, 2005 through 2007--51 cents per gallon. The 
     extension and the modifications apply to both the alcohol 
     fuels credit and the associated excise tax provisions.
       c. Extension and modification of Highway Fund provisions 
           8
---------------------------------------------------------------------------
     \8\ S. 1173 would authorize expenditures for a Congestion 
     Mitigation and Air Quality Program (``CMAQ'') pursuant to 
     which State transportation departments (or other project 
     sponsors) would be permitted to enter into agreements with 
     public and private entities to implement certain 
     environmental projects, including programs to promote the use 
     of alternative fuels by privately owned vehicles by 
     underwriting the costs of converting vehicles to alternative 
     fuels.
     The Committee amendment provides that to the extent that 
     payments received under the program are not taxable under 
     present law when received, no credit or other deduction is 
     allowed, and a reduction in basis may be required, with 
     respect to property (or other expenditures) financed directly 
     or indirectly with the CMAQ monies. No inference is intended 
     from this provision as to the treatment of amounts received 
     under other Federal grant programs.
---------------------------------------------------------------------------
       The current September 30, 1997 expiration date of authority 
     to spend monies from the Highway Fund is extended for six 
     years, from October 1, 1997 through September 30, 2003.
       The Code provisions governing purposes for which monies in 
     the Highway Fund may be spent is updated to include the 
     purposes provided in S. 1173, as enacted.
       The anti-deficit provisions of the Mass Transit Account are 
     conformed to those of the Highway Account so that permitted 
     obligations will be determined by reference to two years of 
     projected revenues.
       Transfers of revenues on motorboat and small engine 
     gasoline from the Highway Fund to the Aquatic Resources Trust 
     Fund and the Land and Water Conservation Fund are extended 
     for six years, from September 30, 1997 through September 30, 
     2003.
       The Code provisions establishing the National Recreational 
     Trails Trust Fund (``Trails Fund'') and providing for 
     transfer of revenues to the Trails Fund are repealed, 
     effective on the date of enactment.
       Provisions are incorporated into the Highway Fund 
     clarifying that expenditures from the Highway Fund may occur 
     only as provided in the Code. Clarification is further 
     provided that the expiration date for expenditures allowed 
     from the Highway Fund does not preclude disbursements to 
     liquidate contracts which were validly entered into before 
     that date. Expenditures for contracts entered into or for 
     amounts otherwise obligated after that date (or for other 
     non-contract authority purposes permitted by non-Code 
     provisions) would not be permitted, notwithstanding the 
     provisions of any subsequently enacted authorization or 
     appropriations legislation. If any such subsequent non-tax 
     legislation provided for expenditures not provided for in the 
     Code, or if any executive agency authorized such expenditures 
     in contravention of the Code restrictions, excise tax 
     revenues otherwise to be deposited in the Highway Fund would 
     be retained in the General Fund beginning on the date of any 
     unauthorized expenditure (including an obligation of funds 
     under contract authority) pursuant to such legislation or the 
     date of such an action by an executive agency. 9 
     Similar clarifications are incorporated into the Aquatic 
     Resources Trust Fund.
---------------------------------------------------------------------------
     \9\ The Committee does not intend that tax deposits terminate 
     as a result of inadvertent administrative errors provided 
     those errors are corrected within a reasonable period and do 
     not evidence a pattern of disregard of this provisions.
---------------------------------------------------------------------------
       A technical amendment of the Taxpayer Relief Act of 1997 is 
     included clarifying that excise tax revenues attributable to 
     LNG, CNG, propane, and methanol from natural gas (all of 
     which are subject to reduced, energy equivalent rates, as 
     indicated in Table 1) are divided between the Highway and 
     Mass Transit Accounts of the Highway Fund in the same 
     proportions as gasoline tax revenues are divided between 
     those two accounts.
       A technical correction to the Taxpayer Relief Act of 1997 
     is included providing that, the amount of gasoline and diesel 
     fuel tax revenues deposited into the Mass Transit Account 
     would be 2.86 cents per gallon (rather than 2.85 cents per 
     gallon as provided in that 1997 Act).
     2. Repeal 1.25 cents per gallon of tax rate on rail diesel 
         fuel
       The Committee amendment repeals the 1.25-cents-per-gallon 
     rate on rail diesel fuel that is scheduled to expire after 
     September 30, 1999. The repeal is effective on May 16, 1999.
     3. Authorize limited tax-exempt financing for toll road and 
         certain similar highway infrastructure projects
       S. 1173 would authorize the construction of up to 15 
     highway infrastructure projects, such as toll roads involving 
     private business participation. The Committee amendment 
     provides that these projects are to be eligible for tax-
     exempt private activity bond financing. Bonds for these 
     projects generally are subject to all Code provisions 
     governing issuance of tax-exempt private activity bonds 
     except (1) the annual State volume limits (sec. 146) and (2) 
     no proceeds of these bonds may be used to finance land. In 
     lieu of the State volume limits, the aggregate amount of 
     bonds that could be issued under this pilot project is $15 
     billion (as allocated by the Department of Transportation in 
     consultation with the Department of the Treasury).
     4. Exclusion from income for employer-provided transportation 
         benefits
       The Committee amendment permits employers to offer 
     employees the option of electing cash compensation in lieu of 
     any qualified transportation benefit, or a combination of any 
     of these benefits. Qualified transportation benefits include 
     employer-provided transit passes, parking and vanpooling. 
     Thus, no amount is includible in gross income or wages merely 
     because the employee is offered the choice of cash or such 
     benefits. The amount of cash offered is includible in income 
     and wages only to the extent the employee elects cash. In 
     addition, the Committee amendment increases the exclusion for 
     transit passes and vanpooling to $100 per month for taxable 
     years beginning after December 31, 2002. The $100 amount is 
     indexed as under present law.

             III. BUDGET EFFECTS OF THE COMMITTEE AMENDMENT


                         A. Committee Estimate

       In compliance with paragraph 11(a) of Rule XXVI of the 
     Standing Rules of the Senate, the following statement is made 
     concerning the estimated budget effects of the revenue 
     provisions of the Committee amendment. (See the following 
     table.)

  ESTIMATED BUDGET EFFECTS OF AN EXTENSION OF HIGHWAY TRUST FUND EXCISE TAXES AND RELATED TRUST FUND PROVISIONS, AS APPROVED BY THE SENATE COMMITTEE ON 
                                                               FINANCE ON OCTOBER 1, 1997                                                               
                                                    [Fiscal years 1998-2007, in millions of dollars]                                                    
--------------------------------------------------------------------------------------------------------------------------------------------------------
           Provision                 Effective       1998    1999    2000    2001    2002    2003    2004    2005    2006    2007   1998-2002  1998-2007
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Extend Highway Trust Fund    10/1/99...........                                                                                                      
 excise taxes through 9/30/05.                                                                                                                          
(11)No Revenue Effect                                                                                                                                   

[[Page S10710]]

                                                                                                                                                        
2. Extend income tax credits    1/1/01............  ......  ......  ......      10      14      25      29      40      45      45         24        208
 for ethanol through 12/31/07                                                                                                                           
 and ethanol excise tax                                                                                                                                 
 exemptions through 9/30/07,                                                                                                                            
 and reduce tax subsidy from                                                                                                                            
 54 cents/gallon to 53 cents/                                                                                                                           
 gallon in 2001-2002, 52 cents/                                                                                                                         
 gallon in 2003-2004, and 51                                                                                                                            
 cents/gallon thereafter.                                                                                                                               
3. Extend Highway Trust Fund    10/1/97...........                                                                                                      
 expenditure authority through                                                                                                                          
 9/30/03.                                                                                                                                               
(11)No Revenue Effect                                                                                                                                   
4. Clarification of tax         DOE...............                                                                                                      
 treatment of environmental                                                                                                                             
 grant monies.                                                                                                                                          
(11)No Revenue Effect                                                                                                                                   
5. Repeal the 1.25 cents/       5/16/99...........  ......     -11  ......  ......  ......  ......  ......  ......  ......  ......        -11        -11
 gallon rail diesel tax.                                                                                                                                
6. Tax-exempt bonds for         bia DOE...........  ......  ......      -2      -5      -7     -10     -13     -15     -17     -18        -13        -85
 private sector highway                                                                                                                                 
 infrastructure construction.                                                                                                                           
7. Allow employees to elect     tyba 12/31/02.....  ......  ......  ......  ......  ......      -2      -3      -5      -5      -5  .........        -21
 between cash compensation,                                                                                                                             
 qualified transportation                                                                                                                               
 fringe benefits or a                                                                                                                                   
 combination of both \1\.                                                                                                                               
8. Increase employer-provided   tyba 12/31/02.....  ......  ......  ......  ......  ......      -2     -13     -17     -27     -30  .........        -89
 mass transit pass income                                                                                                                               
 exclusion to $100 \2\.                                                                                                                                 
      Net total...............  ..................  ......     -11      -2       5       7      11  ......       3      -4      -9  .........         2 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Estimate includes change in receipts to Social Security trust fund (-$13 million for 1998-2007).                                                    
\2\ Estimate includes change in receipts to Social Security trust fund (-$34 million for 1998-2007).                                                    
                                                                                                                                                        
Legend for ``Effective'' column: bia=bonds issued after; DOE=date of enactment; tyba=taxable years beginning after.                                     
                                                                                                                                                        
Note.--Details may not add to totals due to rounding.                                                                                                   
                                                                                                                                                        
Source: Joint Committee on Taxation.                                                                                                                    

                B. Budget Authority and Tax Expenditures

     Budget Authority
       In compliance with section 308(a)(1) of the Budget Act, the 
     Committee states that the revenue provisions do not involve 
     new or increased budget authority.
     Tax Expenditures
       In compliance with section 308(a)(2) of the Budget Act, the 
     Committee states that the income tax reduction provisions 
     (tax-exempt bonds for private sector highway infrastructure 
     construction, allow employees to elect between cash 
     compensation and qualified transportation fringe benefits, 
     and increase employer-provided mass transit pass income 
     exclusion) will increase tax expenditures by the amounts 
     shown in the above table. The reduction in the income tax 
     credit for ethanol fuels will reduce tax expenditures by $2 
     million. The excise tax provisions do not involve tax 
     expenditures under the current statutory definition of tax 
     expenditures.


            C. Consultation With Congressional Budget Office

       In accordance with section 403 of the Budget Act, the 
     Committee advises that the Congressional Budget Office has 
     submitted the following statement with respect to the 
     Committee amendment.

                                                    U.S. Congress,


                                  Congressional budget Office,

                                  Washington, DC, October 8, 1997.
     Hon. William V. Roth, Jr.,
     Chairman, Committee on Finance,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office and the 
     Joint Committee on Taxation (JCT) have reviewed the Committee 
     on Finance's amendment to S. 1173, the Intermodal 
     Transportation Act of 1997. The JCT estimate that this 
     amendment would decrease governmental receipts by $11 million 
     in fiscal year 1999 and have no net effect on receipts over 
     fiscal years 1998 through 2002. CBO concurs with this 
     estimate.
       The revenue effect of the Committee's amendment to S. 1173 
     are summarized in the table below. Please refer to the 
     enclosed table for a more detained estimate of the amendment.

                                            REVENUE EFFECT OF THE COMMITTEE ON FINANCE'S AMENDMENT TO S. 1173                                           
                                                        [By fiscal years in billions of dollars]                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       1998     1999     2000     2001     2002     2003     2004     2005     2006     2007   1998-2000
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proposed Changes:                                                                                                                                       
    On-Budget......................................        0      -11       -2        5        7       13        6       12        8        5         45
    Off-Budget.....................................        0        0        0        0        0       -2       -6       -9      -12      -14        -43
                                                    ----------------------------------------------------------------------------------------------------
      Total........................................        1      -11       -2        5        7       11        0        3       -4       -9          2
--------------------------------------------------------------------------------------------------------------------------------------------------------

       In accordance with the requirements of Public Law 104-4, 
     the Unfunded Mandates Reform Act of 1995, JCT has determined 
     that the Committee amendment contains no federal 
     intergovernmental mandates. States, local, and tribal 
     governments are exempt from income tax and from the motor 
     fuels excise tax.
       In addition, JCT has determined that the amendment contains 
     one federal private sector mandate. The provision to reduce 
     the tax credit or exemption from gasoline excise tax for 
     ethanol users would impose direct costs on the private sector 
     of $208 million over fiscal years 2001 through 2007. Please 
     refer to the enclosed letter for a more detailed account of 
     the mandates in the amendment.

                                                             FEDERAL PRIVATE SECTOR MANDATES                                                            
                                                        [By fiscal years, in millions of dollars]                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       1998     1999     2000     2001     2002     2003     2004     2005     2006     2007   1998-2007
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Mandate Cost.................................        0        0        0       10       14       25       29       40       45       45        208
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Section 252 of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 establishes pay-as-you-go procedures for 
     legislation affecting receipts or direct spending through 
     2007. Because the Committee amendment would affect receipts, 
     pay-as-you-go procedures would apply. These effects are 
     summarized in the table below. Changes in Social Security 
     taxes, which are off-budget, are not included.

                                                              PAY-AS-YOU-GO CONSIDERATIONS                                                              
                                                        [By fiscal years, in millions of dollars]                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       1998     1999     2000     2001     2002     2003     2004     2005     2006     2007   1998-2007
--------------------------------------------------------------------------------------------------------------------------------------------------------
Receipts...........................................        0      -11       -2        5        7       13        6       12        8        5         45
Outlays............................................                                                                                                     
(10)Not Applicable                                                                                                                                      
--------------------------------------------------------------------------------------------------------------------------------------------------------

       If you wish further details, please feel free to contact me 
     or your staff may wish to contact Alyssa Trzeszkowski at 226-
     2720.
           Sincerely,
                                                     James L. Blum
                                  (For June E. O'Neill, Director).
       Enclosure.
         
         
         
         
         
         
         
         
         
         
         

[[Page S10711]]


  ESTIMATED BUDGET EFFECTS OF AN EXTENSION OF HIGHWAY TRUST FUND EXCISE TAXES AND RELATED TRUST FUND PROVISIONS, AS APPROVED BY THE SENATE COMMITTEE ON 
                                                               FINANCE ON OCTOBER 1, 1997                                                               
                                                     [Fiscal years 1998-2007, in million of dollars]                                                    
--------------------------------------------------------------------------------------------------------------------------------------------------------
           Provision                 Effective       1998    1999    2000    2001    2002    2003    2004    2005    2006    2007   1996-2002  1998-2007
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Extend Highway Trust Fund    10/1/99...........                                                                                                      
 excise taxes through 9/30/05.                                                                                                                          
(11)No Revenue Effect                                                                                                                                   
2. Extend income tax credits    1/1/01............  ......  ......  ......      10      14      25      29      40      45      45         24        208
 for ethanol through 12/31/07                                                                                                                           
 and ethanol excise tax                                                                                                                                 
 exemptions through 9/30/07,                                                                                                                            
 and reduce tax subsidy from                                                                                                                            
 54 cents/gallon to 53 cents/                                                                                                                           
 gallon to 53 cents/gallon in                                                                                                                           
 2001-2002, 52 cents/gallon in                                                                                                                          
 2003-2004, and 51 cents/                                                                                                                               
 gallon thereafter.                                                                                                                                     
3. Extend Highway Trust Fund    10/1/97...........                                                                                                      
 expenditure authority through                                                                                                                          
 9/30/03.                                                                                                                                               
(11) No Revenue Effect                                                                                                                                  
4. Clarification of tax         DOE...............                                                                                                      
 treatment of environmental                                                                                                                             
 grant monies.                                                                                                                                          
(11)No Revenue Effect                                                                                                                                   
5. Repeal the 1.25 cents/       5/16/99...........  ......  ......     -11  ......  ......  ......  ......  ......  ......  ......        -11        -11
 gallon rail diesel tax.                                                                                                                                
6. Tax-exempt bonds for         bia DOE...........  ......  ......      -2      -5      -7     -10     -13     -15     -17     -18        -13        -85
 private sector highway                                                                                                                                 
 infrastructure construction.                                                                                                                           
7. Allow employees to elect     tyba 12/31/02.....  ......  ......  ......  ......  ......      -2      -3      -5      -5      -6  .........        -21
 between cash compensation,                                                                                                                             
 qualified transportation                                                                                                                               
 fringe benefits or a                                                                                                                                   
 combination of both \11\.                                                                                                                              
8. Increase employer-provided   tyba 12/31/02.....  ......  ......  ......  ......  ......      -2     -13     -17     -27     -30  .........        -89
 mass transit pass income                                                                                                                               
 exclusion to $100 \12\.                                                                                                                                
      Net total...............  ..................  ......     -11      -2      -5       7      11  ......       3      -4      -9  .........          2
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Estimate includes change in receipts to Social Security trust fund (-$13 million for 1998-2007).                                                    
\2\ Estimate includes change in receipts to Social Security trust fund (-$34 million for 1998-2007).                                                    
                                                                                                                                                        
Legend for ``Effective'' column: bia=bonds issued after; DOE=date of enactment; tyba=taxable years beginning after.                                     
                                                                                                                                                        
Note.--Details may not add to totals due to rounding.                                                                                                   
                                                                                                                                                        
Source: Joint Committee on Taxation.                                                                                                                    

                       IV. Vote of the Committee

        In compliance with paragraph 7(b) of Rule XXVI of the 
     Standing Rules of the Senate, the following statement is made 
     concerning the vote on the motion to approve the Committee 
     amendment.
        The Committee amendment was approved by a voice vote, with 
     a quorum present.

                 V. Regulatory Impact and Other Matters


                          A. Regulatory Impact

        Pursuant to paragraph 11(b) of Rule XXVI of the Standing 
     Rules of the Senate, the Committee makes the following 
     statement concerning the regulatory impact that might be 
     incurred in carrying out the provisions of the Committee 
     amendment.
     Impact on individuals and businesses
        The Committee amendment extends the present-law Federal 
     Highway Trust Fund excises for 6 years, October 1, 1999-
     September 30, 2005, in order to provide funding for the 6-
     year extension of the Highway Fund authorizations in S. 1173. 
     This extension of existing Highway Fund excise taxes will not 
     change the tax burden on individual or business users of the 
     Federal-aid highway system.
        The Committee amendment also extends the income tax 
     credits and partial excise tax exemptions for ethanol fuel, 
     at a reduced subsidy rate beginning in 2001. This will 
     increase the tax burden somewhat for individual and business 
     users of ethanol fuels. (See revenue table in Part IV.A., 
     above, for the estimated budget effects of this provision.)
        The Committee amendment extends the authority to make 
     expenditures from the Highway Fund for 6 years, October 1, 
     1997-September 30, 2003, and updates the purposes for which 
     Highway Fund monies may be expended to include such purposes 
     as included in S. 1173.
        The Committee amendment clarifies the income tax treatment 
     of certain environmental grant monies under a Congestion 
     Mitigation and Air Quality Program. No inference is intended 
     as to the treatment of amounts received under other Federal 
     grant programs.
        The Committee amendment repeals the 1.25 cents per gallon 
     General Fund tax rate on rail diesel fuel, effective on May 
     16, 1999.
        The Committee amendment provides that tax-exempt bonds may 
     be issued to finance up to $15 billion of highway 
     infrastructure projects, such as toll roads involving private 
     business participation.
        The Committee amendment permits employers to offer 
     employees the option of electing cash compensation in lieu of 
     any qualified transportation benefit. The amount of cash 
     offered is includible in income and wages only to the extent 
     the employees elect cash. Further, the Committee amendment 
     increases the exclusion for transit passes and vanpooling to 
     $100 per month for taxable years beginning after December 31, 
     2002.
     Impact on personal privacy and paperwork
        The Committee amendment will not affect personal privacy, 
     and should not involve any increase in paperwork above that 
     currently required of individual and business taxpayers.


                     B. Unfunded Mandates Statement

        This information is provided in accordance with section 
     423 of the Unfunded Mandates Reform Act of 1995 (P.L. 104-4).
        The Committee on Finance has reviewed the provisions of 
     the revenue title to S. 1173 (``Committee amendment'') 
     approved by the Senate Committee on Finance on October 1, 
     1997. In accordance with the requirements of Public Law 104-
     4, the Unfunded Mandates Reform Act of 1995, the Committee 
     has determined that the following provision of the Committee 
     amendment contains Federal private sector mandates: Extension 
     and reduction in ethanol tax credit/excise tax exemption
        As indicated in the revenue table (Part IV.A., above), 
     this provision is estimated to increase tax revenue by $208 
     million over fiscal years 2001-2007, which is the estimated 
     amount that the private sector will be required to spend in 
     order to comply with this Federal private sector mandate. 
     This provision will not impose a Federal intergovernmental 
     mandate on State, local, or tribal governments, as such 
     governmental entities are exempt from income tax and from the 
     motor fuels excise taxes.

                          ____________________