[Congressional Record Volume 144, Number 142 (Saturday, October 10, 1998)]
[House]
[Pages H10479-H10509]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SUBMISSION OF EXTRANEOUS MATTER EXCEEDING 2 PAGES OF THE CONGRESSIONAL 
                                 RECORD

  Mr. SHUSTER. Mr. Speaker, I ask unanimous consent to insert in the 
Record updated explanatory materials relating to the Transportation 
Equity Act for the 21st Century, commonly known as ISTEA, and to extend 
my remarks in the Record and to include therein extraneous material not 
withstanding the fact that it exceeds 2 pages and is estimated by the 
Public Printer to cost $9,376. This material will serve as a useful 
record for interpreting this important legislation.
  The SPEAKER pro tempore (Mr. Calvert). Is there objection to the 
request of the gentleman from Pennsylvania?
  There was no objection.
  The SPEAKER pro tempore. Without objection, and notwithstanding the 
cost, the gentleman may insert extraneous material in the Record, but 
that material does not constitute a revised joint statement of managers 
to accompany a conference report previously filed.
  There was no objection.

           Introductory Note to Updated Explanatory Materials

       The House Conferees from the Committee on Transportation 
     and Infrastructure on the Transportation Equity Act for the 
     21st Century (TEA 21) are pleased to published the 
     accompanying updated explanatory materials related to TEA 21. 
     These materials reflect what we intended the legislative 
     history of TEA 21 to be, had there been adequate time to 
     develop a complete report.
       TEA 21 is comprehensive surface transportation legislation 
     that reauthorized the Federal highway, transit, highway 
     safety grant and surface transportation research programs for 
     Fiscal Years 1998 through 2003. It also contains legislation 
     extending the Highway Trust Fund and its taxes, changes to 
     the Balanced Budget and Emergency Deficit Control Act of 1985 
     that ensure the trust fund revenues are spent, budgetary 
     offsets to pay for the increased levels of funding 
     authorized, provisions related to ozone and particulate 
     matter standards, the National Highway Traffic Safety 
     Administration Act of 1998, provisions related to rail 
     programs, comprehensive ``one-call'' notification programs, 
     and the Sportfishing and Boating Safety Act of 1998.
       The Conference Report on TEA 21 (House Report 105-550) 
     passed the House of Representatives and the Senate on May 22, 
     1998, and was signed into law by the President on June 9, 
     1998, as Public Law 105-178.
       Several important provisions agreed to by the House and 
     Senate Conferees were inadvertently omitted from the version 
     of TEA 21 that passed the Congress and that was signed into 
     law. It also contained several technical errors. To restore 
     these omissions and correct the errors, Congress subsequently 
     passed the TEA 21 Restoration Act as Title IX of the Internal 
     Revenue Service Restructuring and Reform Act of 1998. The 
     President signed it into law on July 22, 1998, as Public Law 
     105-206. The attached version of TEA 21 reflects the changes 
     made by the TEA 21 Restoration Act.
       Due to the tight schedule for finalizing the TEA 21 
     Conference, the Statement of Managers accompanying TEA 21 
     contained technical errors and omissions relating to Title I 
     (Federal-aid Highways) and Title V (Transportation Research). 
     The attached version corrects these errors and contains more 
     extensive descriptions of many TEA 21 provisions.
       We hope that upcoming Committee Print of TEA 21 and the 
     accompanying explanatory materials will be a useful document 
     for interpreting TEA 21 since it was extensively amended soon 
     after being signed into law, and since the original Statement 
     of Managers did not properly reflect the legislation that was 
     signed into law.
             TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY


                     UPDATED EXPLANATORY MATERIALS

                     TITLE I--FEDERAL-AID HIGHWAYS

                Subtitle A--Authorizations and Programs

                 Sec. 1. Short Title, Table of Contents

     House bill
       Section 1 provides that the title of the House bill is the 
     ``Building Efficient Surface Transportation And Equity Act of 
     1998,'' or ``BESTEA.'' Section 1 also includes a table of 
     contents.
     Senate amendment
       Section 1 provides that the title of the Senate bill is the 
     ``Intermodal Surface Transportation Efficiency Act of 1998,'' 
     or ``ISTEA II.'' Section 1 also includes a table of contents 
     for the bill.
     Conference substitute
       The Conference adopts a substitute provision as the title 
     of the Act. This title is ``Transportation Equity Act for the 
     21st Century'' or ``TEA 21.'' The subsection also includes a 
     table of contents for the Act.

                          Sec. 2. Definitions

     House bill
       Secton 2 provides that, as used in the House bill, the term 
     ``Interstate System'' has the meaning given the term by 
     section 101 of title 23, United States Code, and the term 
     ``Secretary'' means the Secretary of Transportation.
     Senate amendment
       Section 2 provides that, as used in the Senate bill, the 
     term ``Secretary'' means the Secretary of Transportation.
     Conference substitute
       The Conference adopts the House provision.


                             savings clause

     House bill
       Section 3 provides that amendments made by this Act shall 
     not affect any apportionment or allocation of any funds that 
     occurred before the date of enactment of this

[[Page H10480]]

     Act unless the bill specifically directs that the allocation 
     or apportionment be modified.
     Senate amendment
       The Senate bill contained no comparable provision.
     Conference substitute
       The Conference does not adopt the House provision.


                         amendments to title 23

     House bill
       Section 101 directs that each amendment in the bill, or 
     repeal of a section or other provision of law, is an 
     amendment to title 23 of the United States Code unless the 
     bill states otherwise.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference does not adopt the House provision.


                        short title for title I

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1001 includes a short title for the first title of 
     the bill covering highway programs. This title may be cited 
     as the ``Surface Transportation Act of 1998''.
     Conference substitute
       The Conference does not adopt the Senate provision.

               Sec. 1101. Authorization of Appropriations

     House bill
       Subsection 102(a) authorizes funds from the Highway Trust 
     Fund (HTF) (other than the Mass Transit Account) for major 
     Federal-aid highway programs and the Federal lands highways 
     program for fiscal years 1998 through 2003.
       Subsection 102(b) continues the Disadvantaged Business 
     Enterprise program. It also allows an entity or person that 
     is prevented under Federal court order from complying with 
     the DBE provision to continue to be eligible to receive 
     Federal funds. The Comptroller General is required to conduct 
     a study of the DBE program within three years of the date of 
     enactment of this Act. Recent court decisions have 
     established new standards for review of the constitutionality 
     of programs such as the DBE provisions enacted in prior 
     surface transportation acts and the courts are now 
     determining whether the DBE programs comply with those 
     standards. The Department of Transportation is reviewing the 
     DBE program in light of recent court rulings and has proposed 
     new regulations to ensure that the program withstands 
     constitutional muster. Subsection 102(b) of the reported bill 
     makes no changes to these provisions, preferring to let the 
     courts resolve these reviews. However, the Committee will 
     continue to monitor DOT's administration of this program and 
     gauge the impact of court decisions on these provisions.
       This provision is intended to ensure that grant recipients 
     under this Act will continue to be eligible to receive 
     Federal funds even if a Federal court has entered a final 
     order finding the DBE program to be unconstitutional.
       The possibility of legal challenges may affect a limited 
     number of States or transit agencies. This provision is 
     intended to ensure that any affected recipients will not be 
     unfairly penalized for complying with a final order of a 
     Federal court finding the DBE program to be unconstitutional.
     Senate amendment
       Section 1101(a) provides contract authority from the 
     Highway Trust Fund for each of fiscal years 1998 through 2003 
     for the Interstate and National Highway System (NHS) Program, 
     the Surface Transportation Program, the Congestion Mitigation 
     and Air Quality Improvement Program, and the Federal lands 
     highways program.
       Section 1111 continues the provisions in current law 
     regarding the disadvantaged business enterprise (DBE) 
     program. The DBE program, which originated in the Surface 
     Transportation Assistance Act of 1982, requires that 10 
     percent of the funds provided under titles I, II, and V of 
     this Act be expended with small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals, except to the extent that the Secretary of 
     Transportation determines otherwise.
       In 1995, the Supreme Court decided Adarand v Pena, which 
     heightened the standard of judicial review applicable to 
     Federal affirmative action programs. The case involved a 
     Caucasian subcontractor who submitted a low bid on a Federal 
     lands highway construction contract, but lost to a company 
     that was certified as ``disadvantaged.'' Adarand filed suit, 
     alleging that he was denied the equal protection guaranteed 
     by the Fifth amendment. The Court agreed in a 5-4 decision 
     that Federal race classifications, such as the DBE program, 
     must be subject to strict scrutiny. In other words, the 
     program must: (1) serve a compelling government interest, and 
     (2) be narrowly tailored to address that compelling interest, 
     which in this case is fighting discrimination.
       It is important to note that the Supreme Court did not 
     strike down the DBE program or any other Federal affirmative 
     action program. That means that if the program in question 
     meets the new test outlined by the Court, it is 
     Constitutional and may continue to exist. In the case of the 
     DBE program, the Department of Transportation has determined 
     that the Constitutional concerns can be addressed through 
     changes in the Department's regulations. To that end, the 
     Department has proposed a number of regulations intended to 
     address the ``narrow tailoring'' requirements of ``strict 
     scrutiny'' by (1) giving priority to race-neutral measures in 
     meeting program goals, and (2) limiting the potential adverse 
     effects of the program on other parties.
     Conference substitute
       Subsection 1101(a) authorizes funds from the Highway Trust 
     Fund (other than the Mass Transit Account) for each of fiscal 
     years 1998 through 2003 for the following programs and 
     projects: the Interstate maintenance program, the National 
     Highway System program, the bridge program, the surface 
     transportation program, the congestion mitigation and air 
     quality improvement program, the recreational trails program, 
     the Federal lands highways program, the construction of ferry 
     boats and ferry terminal facilities, the national scenic 
     byways program, high priority projects, highway use tax 
     evasion projects, and the highway program of the Commonwealth 
     of Puerto Rico. Subsection 1101(a) also authorizes funds from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     for each of fiscal years 1999 through 2003 for the following 
     programs: the Appalachian development highway system, the 
     national corridor planning and development and coordinated 
     border infrastructure programs, and the value pricing pilot 
     program.
       The Conference contains the Senate provision continuing the 
     Disadvantaged Business Enterprise program in TEA 21. This 
     provision is substantially identical to the existing DBE 
     provision contained in the ISTEA bill. The provision adopted 
     by the conference is also operationally identical to the 
     provision contained in the House bill. The Conference has 
     continued the program without change from prior law. Courts 
     will make a final determination as to whether the statute, as 
     implemented by the Department of Transportation, is 
     constitutional under the Supreme Court's Adarand decision.
       The possibility of legal challenges to the DBE program was 
     of concern to the Conferees. Therefore, the provision is 
     intended to ensure that grant recipients under this Act will 
     continue to receive Federal funds even if a Federal court has 
     entered a final order finding the DBE program to be 
     unconstitutional.

                     Sec. 1102. Obligation Ceiling

     House bill
       Subsection 103(a) sets the annual obligation limitation for 
     the Federal-aid highway program for fiscal years 1998 through 
     2003.
       Subsection 103(b) lists the programs that are exempt from 
     the annual obligation ceiling for the Federal-aid highway 
     program. These programs are emergency relief, minimum 
     allocation, demonstration projects authorized in prior 
     surface transportation bills, and high priority projects.
       Subsection 103(c) directs the Secretary to distribute the 
     annual obligation authority to the States in the manner 
     specified. All formula and allocated programs share 
     proportionally in the obligation authority.
       Subsection 103(d) directs the Secretary to redistribute, 
     after August 1 of each fiscal year, the obligation authority 
     made available under subsection (c) from States that will be 
     unable to use their obligation authority by the end of the 
     fiscal year to those States able to obligate the unused 
     obligation authority.
       Subsection 103(c) clarifies that the programs carried out 
     under chapter 3 of title 23, United States Code, and title VI 
     of this Act are subject to the obligation limitation.
       Subsection 103(f) directs that funds that will not be 
     allocated to the States and that are unavailable in any 
     fiscal year due to the imposition of an obligation limitation 
     be distributed to the States.
     Senate amendment
       Section 1103 sets the annual obligation limitation for the 
     Federal-aid highway program, specifies the programs that are 
     exempt from the obligation limitation, and sets forth the 
     process for distributing the annual obligation limitation.
       Consistent with current law, this section continues the 
     exemptions for programs that were exempt from the obligation 
     limitation under ISTEA. This exemption includes the emergency 
     relief program, unobligated balances for demonstration 
     projects that were already exempt from the limitation in 
     ISTEA, and funds apportioned under subsection (a) of the 
     minimum guarantee adjustment.
       This section also continues the practices that directs the 
     Secretary to distribute the annual obligation limitation 
     imposed on the Federal-aid highway program. Consistent with 
     current law, the Secretary shall distribute the annual 
     obligation authority to the States in the ratio that the 
     total of Federal-aid highway funds and highway safety funds 
     for each State bears to the total of Federal-aid highway 
     funds and highway safety funds for all the States. After 
     August 1 of each fiscal year, the Secretary is required to 
     distribute the additional obligation authority from States 
     unable to use their obligation authority by the end of the 
     fiscal year to those States able to obligate the unused 
     obligation authority.
     Conference substitute
       The Conference adopts the House provision, with the 
     following modifications.

[[Page H10481]]

       Subsection 1102(a) sets the annual obligation limitation 
     for Federal-aid highway and highway safety construction 
     programs for each of fiscal years 1998 through 2003. The 
     annual obligation limitations is tied to Highway Trust Fund 
     tax revenues for the previous fiscal year and will change as 
     such revenues change, in accordance with subsection 1102(h).
       Subsection 1102(b) of the Conference provision modifies the 
     list of programs that are exempt from the annual obligation 
     ceiling for Federal-aid highways and highway safety 
     construction programs. Exempt programs are emergency relief, 
     demonstration projects authorized in prior surface 
     transportation bills, minimum allocation funds, and a portion 
     of minimum guarantee funds.
       Paragraph 1102(c)(1) of the Conference provision provides 
     that the Secretary not distribute obligation authority for 
     certain programs, including administrative expenses.
       Paragraph 1102(c)(2) of the Conference provision provides 
     an amount of obligation authority equal to the amount of the 
     unobligated balance of amounts made available in previous 
     fiscal years for those Federal-aid highway and highway safety 
     programs for which funds are allocated by the Secretary.
       Paragraph 1102(c)(3) of the Conference provision 
     establishes how the Secretary is to calculate certain ratios 
     used to distribute the obligation authority.
       Paragraph 1102(c)(4) of the Conference provision states 
     that each high priority project, the Appalachian development 
     highway system, and funding for the Woodrow Wilson Memorial 
     Bridge Authority Act under this Act shall receive the same 
     proportional distribution of obligation authority to budget 
     authority as virtually all other Federal-aid highway programs 
     do under section 1102, and that $2 billion of minimum 
     guarantee funds shall receive an equal amount of obligation 
     limitation. Sections 1601 (codified at 23 U.S.C. 117) and 
     1602, which authorize the high priority projects, reinforce 
     the intent of the Conferees in paragraph 1102(c)(4) that each 
     high priority project receive the same proportion of 
     obligation authority to budget authority as every other 
     Federal-aid highway program, and that such obligation 
     authority is tied to each individual project. Subsection 
     117(g) directs that `[o]bligation authority attributable to 
     funds made available to carry out this section shall only be 
     available for the purposes of this section. . . .'' 
     Subsection 117(a) directs the Secretary to make available 
     budget authority `to carry out each project [authorized in 
     TEA 21 in] the amount listed for such project in such 
     section.'' The effect of these two provisions in section 117 
     is to require that obligation authority attributable to the 
     budget authority provided for each project shall only be 
     available for each such project. Section 117, in expressly 
     stating that the budget authority for high priority projects 
     is made available only for individual projects, articulates 
     Congress' intent that each individual project be funded. In 
     this respect, the provisions authorizing high priority 
     projects are distinctly different that the provisions 
     authorizing other Federal-aid highway programs for which 
     States receive a lump sum of obligation authority each year.
       Paragraphs 1102(c)(5) and (6) of the Conference provision 
     describe how certain amounts of the obligation authority are 
     to be distributed.
       Subsection 1102(d) of the Conference provision provides for 
     the redistribution of unused obligation authority at the end 
     of the Fiscal Year. This provision is commonly called the 
     ``August Redistribution.''
       Subsection 1102(e) of the Conference provision provides 
     that obligation authority set aside for the transportation 
     research programs be available for three years.
       Subsection 1102(f) directs the Secretary to annually 
     redistribute any budget authority the Secretary determines 
     will not be allocated and will not be available for 
     obligation, due to the imposition of any obligation 
     limitation. This distribution of budget authority to the 
     States shall be made in the same ratio as the distribution of 
     obligation authority under paragraph (c)(6), and such funds 
     shall be available for any eligible purpose under 23 U.S.C. 
     133(b). The Secretary shall not redistribute any budget 
     authority made available in this Act for high priority 
     projects or for the Woodrow Wilson Memorial Bridge Authority 
     Act.
       Subsection 1102(g) states that the obligation limitation 
     provided in paragraph (c)(4) for high priority projects, the 
     Appalachian development highway system, the Woodrow Wilson 
     Memorial Bridge Authority Act, and $2 billion in minimum 
     guarantee funds is available until used and is in addition to 
     the amount of any obligation limitation imposed for Federal-
     aid highway and highway safety construction programs in 
     future fiscal years.
       Subsection 1102(h) provides that the obligation limitation 
     imposed in subsection (a) shall be increased by an amount 
     equal to the amount of funds determined pursuant to section 
     251(b)(1)(B)(I)(cc) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 for such fiscal year, and such 
     increase in obligation authority shall be distributed in 
     accordance with this section.
       In subsection 1102(i), the Conference adopts the Senate 
     provision imposing a separate limitation on obligations for 
     the expenses of administering the provisions of law for 
     Federal-aid highway and highway safety construction programs 
     and the Appalachian development highway system.

                       Sec. 1103. Apportionments

     House bill
       Subsection 104(a) directs the Secretary to deduct, from 
     funds authorized to be appropriated for certain major 
     Federal-aid highway programs and the Federal lands highways 
     program, a sum not to exceed 1 percent of such funds for the 
     purpose of administering the Federal-aid highway program.
       Subsection 104(b) directs the Secretary to apportion 
     amounts available to the States for the National Highway 
     System, congestion mitigation and air quality improvement 
     program, surface transportation program, high risk road 
     safety improvement program, and Interstate maintenance 
     according to specified formulas.
       Subsection 104(c) increases funding for Operation Lifesaver 
     and the High Speed Rail Corridors grade crossing program. 
     Funding for Operation Lifesaver is increased from $300,000 to 
     $500,000 annually. Funding for the High Speed Rail Corridors 
     grade crossing program is increased to $5.25 million per 
     year. In addition, the subsection specifically designates the 
     Minneapolis/St. Paul, Minnesota, to Chicago, Illinois, 
     segment as a part of the Midwest High Speed Rail Corridor 
     (also known as the Chicago Hub). The Minnesota, Wisconsin, 
     and Illinois Departments of Transportation have completed 
     preliminary feasibility studies on the Minneapolis/St. Paul-
     Chicago segment and the Federal Railroad Administration has 
     provided funding for the segment under the Next Generation 
     High Speed Rail Corridor Program.
       Regarding the High Speed Rail Corridors Program established 
     in section 1010 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (ISTEA), the Committee would draw 
     attention to an additional corridor it believes worthy of 
     inclusion. This rail corridor, in Pennsylvania, extends from 
     Philadelphia through Harrisburg to Pittsburgh. It is a 
     logical connecting route between the high speed northeast 
     corridor and points west in Pennsylvania, offering 
     significant mobility and economic benefits. There is a 
     substantial and rapidly growing exchange of passengers 
     between the northeast corridor and this cross-state corridor, 
     particularly on the ``Keystone'' portion from Philadelphia to 
     Harrisburg. The Committee recommends assistance to this 
     corridor under this section as a prelude to consideration of 
     eligibility for costs related to feasibility studies, design, 
     and construction of this corridor for high speed rail.
       Subsection 104(d) makes technical corrections to 23 U.S.C. 
     104(e) and directs the Secretary to transmit to Congress 
     within the first 21 days of each fiscal year a written 
     statement setting forth the reason for not making an 
     apportionment in a timely manner. This subsection has been 
     included in response to the withholding of apportionments in 
     fiscal year 1997. The apportionments were held up for several 
     months due to an error in crediting receipts into the Highway 
     Trust Fund. Ultimately, a correction was made resulting in 
     the redistribution of nearly $1 billion in Federal-aid 
     highway funds. The withholding was done administratively. 
     This amendment would require a written explanation of any 
     withholding in the future.
       Subsection 104(e) amends the metropolitan planning set-
     aside provision in 23 U.S.C. 104(f) by deleting the 
     references to outdated funding programs and providing that 
     the set-aside shall not be deducted from funds made available 
     for the recreational trails program.
       Subsection 104(f) directs the Secretary to apportion to the 
     States the sums authorized for the recreational trails 
     program as follows: 50 percent equally among eligible States 
     and 50 percent in amounts proportionate to the degree of non-
     highway recreational fuel use in each such eligible State. 
     This subsection also directs the Secretary to set-aside 3 
     percent of recreational trails program funds for the 
     administrative and research costs of the program.
       Subsection 104(g) makes several corrections to cross 
     references in title 23 to conform to this section.
       Subsection 104(h) provides the table referenced in the NHS 
     apportionment formula.
       Subsection 104(i) requires that up-to-date data be used for 
     formulas.
       Subsection 104(j) provides the mechanism for adjustments to 
     programs in fiscal year 1998 to take into consideration the 
     Surface Transportation Extension Act of 1997 (STEA) which 
     provided funds from the Highway Trust Fund for a portion of 
     fiscal year 1998. The STEA requires that the Secretary deduct 
     any funds received under that Act from any apportionments 
     made by this Act for fiscal year 1998. Subsection (j) also 
     requires that the Secretary ensure that the total 
     apportionments to each State under this Act be reduced by 
     the amount apportioned to each such State under the STEA.
     Senate amendment
       Subsection 1101(b) sets forth the process by which the 
     Secretary is required to reduce the amounts made available 
     under this Act for fiscal year 1998 by the amounts made 
     available under the Surface Transportation Extension Act of 
     1997.
       Section 1102 provides the basis for distributing 
     apportioned funds among the States. It includes provisions 
     for apportioning funds to the following programs: Interstate 
     and National Highway System, the congestion mitigation and 
     air quality improvement program, the surface transportation 
     program, and other apportionment adjustments, using current 
     indicators to measure the needs, extent, use, and condition 
     of the Federal-aid highway system, and air quality severity 
     in nonattainment and maintenance areas.

[[Page H10482]]

       Subsection 1102(a) replaces the apportionment formulas 
     provided in ISTEA with apportionments based on current 
     transportation measurements in each state. By contrast, ISTEA 
     apportioned a majority of funds to the States based on each 
     State's historical share of apportionments received in 1987 
     through 1991.
       To ensure an efficient and competitive transportation 
     system into the 21st century, this section provides for the 
     use of indicators that measure the needs, condition, extent, 
     and use of the Nation's transportation network today. Many 
     apportionment factors used in this section draw upon the 
     suggested alternatives of the General Accounting Office 
     report, ``Highway Funding, Alternatives for Distributing 
     Federal Funds,'' November 1995.
       The Interstate and National Highway System (INHS) program 
     funds are apportioned in three components. The Interstate 
     maintenance component of INHS is apportioned based on a 
     State's share of total Interstate land miles and total 
     Interstate vehicle miles traveled within the State. The 
     Interstate bridge component is distributed according to the 
     State's share of total square footage of structurally 
     deficient and functionally obsolete Interstate bridges within 
     the State. The National Highway System component is 
     distributed based on a State's share of: (1) total lane miles 
     of principal arterial routes (excluding Interstate lane 
     miles), (2) total vehicle miles traveled on principal 
     arterials (excluding Interstate lane miles), (3) total square 
     footage of deficient bridges on principal arterials 
     (excluding Interstate routes), (4) diesel fuel use, and (5) 
     total lane miles of principal arterials per capita. Each 
     State is guaranteed a minimum of \1/2\ of 1 percent of funds 
     apportioned under the INHS program.
       This section also preserves the basic structure of the 
     current formula for the congestion mitigation and air quality 
     improvement (CMAQ) program, using population and the severity 
     of air pollution as the apportionment factors. The 
     apportionment formula for CMAQ adds a weighting for carbon 
     monoxide nonattainment and maintenance areas, ozone 
     maintenance areas, and submarginal ozone nonattainment areas. 
     These areas were added because they are required under the 
     Clean Air Act to adhere to maintenance plans in meeting air 
     quality requirements. As in current law, each state is 
     guaranteed a minimum share of \1/2\ of 1 percent of total 
     annual CMAQ apportionments.
       The surface transportation program (STP) funds are 
     apportioned based on a State's share of the following: (1) 
     total Federal-aid highway lane miles, (2) total vehicle miles 
     traveled on Federal-aid highways, (3) total square footage of 
     deficient bridges on Federal-aid highways (excluding 
     deficient bridges on the Interstate and other principal 
     arterials); and (4) contributions into the Highway Account of 
     the Highway Trust Fund. Each State is guaranteed a minimum of 
     \1/2\ of 1 percent of funds apportioned under the STP 
     program.
       Subsection 1102(b) provides that deposits into the Highway 
     Trust Fund as a result of section 901(e) of the Taxpayer 
     Relief Act of 1997 shall not be taken into account in 
     determining any State's apportionments or allocations under 
     title 23, United States Code, or this Act.
       In all cases, the factors to be used in the apportionment 
     formulas are to be based on the latest available data and are 
     to be updated each year.
       Subsection 1102(e) amends 23 U.S.C. 104(i) to authorize the 
     Secretary to use administrative funds to reimburse the Office 
     of the Inspector General of the Department of Transportation 
     for annual audits of financial statements in accordance with 
     31 U.S.C. 3521.
       Subsection 1102(f) makes technical changes to 23 U.S.C. 
     104(e) concerning notification to States and to 23 U.S.C. 
     104(f) concerning the metropolitan planning set-aside. The 
     purpose of the set-aside for metropolitan planning is to 
     assist metropolitan areas with the metropolitan planning 
     requirements continued from current law.
       Subsection 1102(g) makes numerous conforming amendments to 
     title 23, United States Code to correct references therein to 
     23 U.S.C. 104, and to delete several outdated sections in 
     title 23.
       In section 1107, which recodifies the recreational trails 
     program, subsection 23 U.S.C. 206(i) directs the Secretary to 
     apportion to the States the sums authorized for the 
     Recreational Trails program as follows: 50 percent equally 
     among eligible States and 50 percent in amounts proportionate 
     to the degree of non-highway recreational fuel use in each 
     such eligible State. This subsection also provides that the 
     amount the Secretary may deduct to pay the costs for 
     administration of the program is reduced from three percent 
     to one percent.
       Paragraph 1112(b)(2) makes a conforming amendment to 23 
     U.S.C. 104(f)(3) concerning the Federal share of project 
     costs for metropolitan planning projects.
       Subsection 1113(c) requires the Secretary to report 
     annually on the rates of obligation of funds for programs for 
     which funds are apportioned or set-aside under 23 U.S.C. 104 
     and 133. The reports shall include information regarding 
     funding category or subcategory, type of improvement, 
     and substate geographic area. Section 1207 amends 23 
     U.S.C. 104(m) to require the Secretary to submit to 
     Congress an annual, rather than monthly, report on States' 
     obligation amounts and unobligated balances for Federal-
     aid highway and highway safety construction programs.
       Section 1131 authorizes an amount not to exceed $16 million 
     per year for fiscal year 1998 through 2003 from the 
     Interstate maintenance component for the reconstruction of a 
     highway or portion of highway outside of the United States 
     that is important to national defense.
       Section 1201 amends subsection 23 U.S.C. 104(a) by reducing 
     the maximum percentage of certain Federal-aid highway 
     apportionments the Secretary is authorized to deduct to 
     administer the Federal-aid highway program from 3\3/4\ 
     percent to 1\1/2\ percent. The reduction reflects that this 
     Act provides funding from other sources for certain non-
     administrative items, such as research and intelligent 
     transportation system activities, that were formerly funded 
     from the administrative takedown.
       Section 1207 amends 23 U.S.C. 104 to require the Secretary 
     to submit to Congress an annual, rather than monthly, report 
     on States' obligations and unobligated balances of funds 
     authorized for Federal-aid highway and highway safety 
     construction programs.
       Section 1221 adds a new subsection to 23 U.S.C. 104 to 
     provide for the program-wide, rather than project-by-project, 
     transfer and administration of transit funds made available 
     for highway projects and highway funds made available for 
     transit projects. This revision will streamline the 
     administration of highway and transit funds by State 
     departments of transportation. This provision also requires 
     the Secretary to administer funds made available under title 
     23 or chapter 53 of title 49 and transferred to Amtrak in 
     accordance with Subtitle V of title 49. Funds made available 
     under title 23 or chapter 53 of title 49 and transferred to 
     other eligible passenger rail projects and activities shall 
     be administered as the Secretary determines appropriate. The 
     non-Federal share provisions in title 23 or chapter 53 of 
     title 49 will continue to apply to the transferred funds.
       Section 1401 amends 23 U.S.C. 104(d) to fund Operation 
     Lifesaver as a set-aside from the surface transportation 
     program, rather than from the administrative takedown for the 
     Federal-aid highway program. This section also increases the 
     funding for Operation Lifesaver from $300,000 to $500,000 for 
     each of fiscal years 1998 through 2003. The funds shall be 
     used for public education programs designed to reduce the 
     number of accidents, deaths and injuries at highway-rail 
     intersections and with railroad rights-of-way.
       Section 1402 authorizes $5 million to be set aside from 
     surface transportation program funds in each of fiscal years 
     1998 to 2003 to be allocated by the Secretary to address 
     railway-highway crossing hazards in five existing high speed 
     rail passenger corridors and authorizes the Secretary to 
     select three additional corridors. The Secretary is to 
     consider ridership volume, maximum speeds, benefits to 
     nonriders such as congestion relief, State and local 
     financial support, and the cooperation of the owner of the 
     right-of-way.
       The previously selected rail corridors under the program 
     are: (1) San Diego to Sacramento, CA; (2) Detroit, MI to 
     Milwaukee, WI; (3) Miami to Tampa, FL; (4) Washington, D.C. 
     to Charlotte, NC; (5) Vancouver, B.C. to Eugene, OR. The New 
     York City-Albany-Buffalo high speed Empire Corridor is an 
     example of a project that meets the intent of this section 
     because of its current travel at high rates of speed and its 
     level of ridership. Section 1402 also requires the Secretary 
     to expend funds under the railway-highway crossing hazard 
     elimination in high speed rail corridors program for a Gulf 
     Cost high speed railway corridor.
     Conference substitute
       In subsection 1103(a), the Conference adopts the Senate 
     provision concerning the percentage of the administrative 
     takedown for the Federal-aid highway program.
       In subsection 1103(b), the Conference adopts a substitute 
     provision which contains portions of both the House and 
     Senate apportionment formulas, with several modifications. 
     The Conference adopts a combination of the House formula and 
     a modified Senate formula for apportioning National Highway 
     System funds. After setting aside $36.4 million for each of 
     fiscal years 1998 through 2003 for the territories and $18.8 
     million for each of fiscal years 1999 through 2003 for the 
     Alaska Highway, the remaining NHS funds shall be apportioned 
     as follows: 25 percent based on each State's share of total 
     lane miles of principal arterials, excluding Interstate 
     routes; 35 percent based on each State's share of total 
     vehicle miles traveled on lanes of principal arterials, 
     excluding Interstate routes; 30 percent based on each State's 
     share of total diesel fuel used on highways; and 10 percent 
     based on each State's share of: total lane miles on principal 
     arterials in the State divided by the State's total 
     population. The conference adopts the Senate formula for 
     apportioning congestion mitigation and air quality 
     improvement program funds, apportioning such funds based on 
     each State's share of the total of all weighted nonattainment 
     and maintenance area populations. The Conference adopts the 
     House formula for apportioning surface transportation program 
     funds, apportioning such funds as follows: 25 percent based 
     on each State's share of total lane miles of Federal-aid 
     highways, 40 percent based on each State's share of total 
     vehicle miles traveled on lanes on Federal-aid highways, and 
     35 percent based on each State's share of estimated tax 
     payments attributable to highway users paid into the Highway 
     Trust Fund (other than the Mass Transit Account). The 
     Conference adopts a combination of the

[[Page H10483]]

     House and Senate formulas for apportioning Interstate 
     maintenance (IM) funds (retaining a separate IM formulas, as 
     in the House bill) and apportions such funds as follows: 
     33\1/3\ percent based on each State's share of total lane 
     miles on Interstate routes open to traffic, 33\1/3\ percent 
     based on each State's share of vehicle miles traveled on 
     certain designated Interstate System routes, and 33\1/3\ 
     percent based on each State's share of annual contributions 
     to the Highway Trust Fund (other than the Mass Transit 
     Account) attributable to commercial vehicles.
       In subsection 1103(c), the Conference adopts the Senate 
     provision and most of the House provision on Operation 
     Lifesaver and High Speed Rail Corridors. The conference 
     adopts the House's $5.25 million funding level for the High 
     Speed Rail Corridors program, includes funding under the 
     program for site-specific corridors that were included in 
     both the Senate and the House bills and reports, includes the 
     Senate bill's criteria for the Secretary to consider in 
     selecting corridors, and authorizes $15 million to be 
     appropriated for each of fiscal years 1999 through 2003 to 
     carry out this subsection. The conference substitute also 
     includes the House provision of $250,000 in funding 
     improvements to the Minneapolis/St. Paul-Chicago segment to 
     the Midwest High Speed Rail Corridor.
       In subsection 1103(d), the Conference adopts the House 
     provision concerning certification of apportionments and 
     notice to the House and Senate by the Secretary when 
     apportionments are not made in a timely manner.
       In subsection 1103(e), the Conference adopts the House 
     provision amending the exception clause in the metropolitan 
     planning set-aside provision in 23 U.S.C. 104(f) and the 
     Senate provision technically amending 104(f)(3) concerning 
     the Federal share.
       In subsection 1103(f), the Conference adopts the House 
     provision authorizing an administrative takedown for the 
     recreational trails program, with a modification. The 
     Conference provision changes the maximum permissible 
     percentage the Secretary can deduct for administration, 
     research, and technical assistance costs from 3 percent to 
     1\1/2\ percent. The House and Senate provisions apportioning 
     Recreational Trails program funds are the same, and this 
     apportionment formula is adopted in subsection 1103(f).
       In subsection 1103(g), the Conference adopts the Senate 
     provision concerning audits of the Highway Trust Fund.
       In subsection 1103(h), the Conference adopts the two Senate 
     provisions concerning reports on obligations, with a 
     modification to combine both provisions in a single 
     subsection in 23 U.S.C. 104.
       In subsection 1103(i), the Conference adopts the Senate 
     provision concerning the transfer of highway and transit 
     funds, with a modification. Transferability to Amtrak or to 
     any publicly-owned intercity or intracity passenger rail line 
     is not adopted.
       In subsection 1103(j), the Conference adopts the Senate 
     provision concerning the effect of certain delay in deposits 
     into the Highway Trust Fund.
       In subsection 1103(k), the Conference adopts the Senate 
     provision making technical amendments to 23 U.S.C. 104(f), 
     with a modification striking the clause in 104(f) excluding 
     certain programs from the metropolitan planning set-aside.
       In subsection 1103(l), the Conference adopts the majority 
     of the Senate provisions making conforming amendments to 
     title 23, United States Code, to correct references therein 
     to 23 U.S.C. 104 and the Senate provision repealing 23 U.S.C. 
     150, which is out of date.
       In subsection 1103(m), the Conference adopts the House 
     provision on adjustments for the Surface Transportation 
     Extension Act of 1997 (STEA), with a modification providing 
     that STEA obligation authority shall be considered to be an 
     amount of obligation authority made available for fiscal year 
     1998 under this Act, and excluding Massachusetts from the 
     provision offsetting the State's STEA funds from the State's 
     fiscal year 1998 authorizations under this Act.
       Subsection 1103(n), provides that for purposes of 
     apportioning funds for Federal-aid highway programs under 23 
     U.S.C. 104, 105, 144, and 206, the term ``State'' means any 
     of the 50 States and the District of Columbia. This 
     definition differs from the definition used in U.S.C. 23 in 
     that it does not include the Commonwealth of Puerto Rico.
       Subsection 1103(o) makes several technical corrections to 
     23 U.S.C. 104.

                      Sec. 1104. Minimum Guarantee

     House bill
       Subsection 111(a) amends 23 U.S.C. 157 to direct the 
     Secretary to allocate minimum allocation funds for fiscal 
     year 1998 and thereafter, and it specifies the programs that 
     are subject to the minimum allocation calculation in such 
     fiscal years. It also provides that a State is guaranteed a 
     ninety-five percent return in its formula program funds 
     compared to its percentage contribution to the Highway Trust 
     Fund, rather than the current ninety percent.
       Subsection 111(b) provides that a State may use funds it 
     receives under the minimum allocation program for any purpose 
     eligible under the surface transportation program.
       Subsection 111(c) makes conforming amendments to 23 U.S.C. 
     157.
       Subsection 111(d) ensures that no State that is a net donor 
     to the Highway Trust Fund receives a percentage of total 
     Federal-aid highway program funds that is less than the 
     percentage it received in the last year of ISTEA.
       Subsection 111(e) ensures that after making all the prior 
     calculations under 23 U.S.C. 157, no State shall receive a 
     final Highway Trust Fund return of less than ninety percent.
     Senate amendment
       Subsections 1102 (c) and (d) replace the existing five 
     apportionment adjustments with two apportionment adjustments, 
     the ISTEA transition and the minimum guarantee. The ISTEA 
     transition adjustment provides a ceiling (a ``maximum 
     transition'') and a floor (a ``minimum transition'') for this 
     adjustment. The maximum transition provides that a State's 
     apportionments under this section may not increase by more 
     than a specified percentage (e.g., 45 percent in 1998) over 
     its ISTEA average funding level. The minimum transition 
     adjustment ensures that a State's apportioned funds will 
     either: (1) increase by a specified percentage (e.g., at 
     least 7 percent in fiscal year 1998) from the average of its 
     apportioned programs under ISTEA (excluding funds apportioned 
     for Interstate Construction, Interstate Substitution, the so-
     called ``Hold Harmless'' program, and the Federal lands 
     highways program), or (2) be equal to at least the amount 
     that a State received in fiscal year 1997 from all 
     apportioned programs in ISTEA, excluding Hold Harmless and 
     demonstration projects.
       The other apportionment adjustment provides a minimum 
     guarantee based on total apportioned funds. This minimum 
     guarantee is divided into two components. The first component 
     provides that a State will receive a minimum share of total 
     apportioned funds equal to 90 percent of its share of 
     contributions into the Highway Account of the Highway Trust 
     Fund. Although similar to the 90 percent minimum allocation 
     program under current law, it differs in several significant 
     ways from current law.
       First, the minimum guarantee applies to 100 percent of 
     apportioned funds rather than to only a portion of 
     apportioned funds. The minimum allocation under current law 
     only applied to less than 80 percent of apportioned funds in 
     ISTEA, leaving some States to receive a percentage equal to 
     70-80 percent of their share of contributions. Second, the 
     calculation is reformed so that the 90 percent guarantee is 
     actually achieved. Even if the current minimum allocation 
     calculation was modified to apply to all apportioned funds, 
     States will come close to reaching a 90 percent guarantee, 
     but will not reach a 90 percent guarantee, because the 90 
     percent minimum allocation received by one State dilutes the 
     percentage for all other States. The 90 percent guarantee 
     calculation in ISTEA II eliminates this problem and achieves 
     at least a 90 percent guarantee for all States.
       The amount apportioned to each State under the first 
     component of the minimum guarantee calculation will vary as 
     each State's share of contributions varies from year to year.
       The second component of the minimum guarantee provides a 
     minimum share for States listed in the table in the new 
     section 105(a)(2) of title 23, United States Code. This 
     calculation applies to States with unique characteristics 
     such as low population density or small land areas.
     Conference substitute
       In section 1104, the Conference adopts the Senate's minimum 
     guarantee provision, with several modifications. First, the 
     Conference substitute contains a single minimum guarantee 
     component, which provides additional funds to ensure that 
     each State's percentage of total apportionments for the 
     Interstate maintenance program, the National Highway System, 
     the bridge program, the congestion mitigation and air quality 
     improvement program, the surface transportation program, 
     metropolitan planning, minimum guarantee, high priority 
     projects, Appalachian development highway system, and 
     recreational trails programs shall be at least 90.5 percent 
     and shall equal the percentage for each such State listed in 
     the table in 23 U.S.C. 105(b). Beginning in FY 1999, these 
     percentages in the table shall be adjusted annually to ensure 
     that each State's percentage return on its percentage 
     contributions to the Highway Trust Fund in the latest fiscal 
     year for which data is available is at least 90.5 percent. 
     After adjusting the percentage for any State falling below 
     90.5 percent, the Secretary shall normalize the remaining 
     percentages to ensure that the total of the percentages is 
     equal to 100 percent. No State shall receive less than $1 
     million annually in minimum guarantee funding.
       Second, the Conference provision states that the first $2.8 
     billion of minimum guarantee funds shall be available to the 
     States for any project eligible under the surface 
     transportation. The amount of minimum guarantee funds in 
     excess of $2.8 billion flow back to the States as Interstate 
     maintenance, National Highway System, surface transportation 
     program, bridge, and congestion mitigation and air quality 
     improvement program funds in amounts proportional to the each 
     program's share of the total apportionments to each State for 
     each fiscal year and are added to each State's formula 
     apportionment for such program.
       The new minimum guarantee provision is codified at 23 
     U.S.C. 105, replacing the current section 105.

              Sec. 1105. Revenue Aligned Budget Authority

     House bill
       The House bill contains no comparable provision.

[[Page H10484]]

     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       In section 1105, the Conference adopts a provision that 
     adds a new section 110 to title 23, United States Code, 
     (thereby repealing current section 110, relating to project 
     agreements) to annually adjust highway funding up or down to 
     correspond with the latest data on Highway Trust Fund 
     receipts. Subsection 110(a) provides that, in fiscal year 
     2000 and each fiscal year thereafter, the Secretary shall 
     allocate an amount of funds equal to any additional amount of 
     discretionary highway spending made available under section 
     8101 of this Act related to the budget firewall for HTF 
     spending. If the annual discretionary highway spending limit 
     decreases under section 8101 for fiscal year 2000 or any 
     fiscal year thereafter, the Secretary, in the succeeding 
     fiscal year, shall proportionately reduce the amounts 
     authorized to carry out the Federal-aid highway and highway 
     safety construction programs (other than the emergency relief 
     program) by an amount equal to the amount of such spending 
     decrease.
       Under subsection 110(b), any additional funds made 
     available under this section shall be distributed in two 
     parts: one to allocated programs and the other to apportioned 
     programs. As to allocated programs, the amount to be 
     distributed is determined by multiplying the total amount of 
     additional funds made available under this section by the 
     ratio of funds authorized for all allocated programs to funds 
     authorized to be appropriated from the Highway Trust Fund for 
     all Federal-aid highway and highway safety construction 
     programs. Such amount shall then be distributed to each 
     allocated program in proportion to each program's share of 
     total HTF authorizations. The remaining amount shall be 
     distributed to each State in proportion to each such State's 
     share of total HTF apportionments. Subsection 110(c) provides 
     that the amount made available for apportioned programs shall 
     be distributed to each State for its Interstate and NHS, 
     bridge, STP, and CMAQ programs in the same ratio that each 
     State is apportioned funds for such programs.

                     Sec. 1106. Federal-Aid Systems

     House bill
       Subsection 106(a) amends 23 U.S.C. 103 to strike existing 
     provisions for the interim eligibility and approval of the 
     National Highway System made unnecessary after its adoption 
     in the National Highway System Designation Act of 1995.
       Subsection 106(b) strikes language for the designation of 
     the National Highway System made unnecessary after its 
     adoption in 1995. The total mileage of National Highway 
     System may not exceed 155,000 miles, except that the 
     Secretary may increase or decrease the mileage by no more 
     than 15 percent.
       Subsection 106(c) modifies the National Highway System to 
     include intermodal connectors on the map submitted to 
     Congress by the Secretary on May 24, 1996.
       Subsection 106(d) allows the National Highway System to be 
     modified to accommodate changes in the Strategic Highway 
     Network (STRAHNET).
       Subsection 106(e) makes several technical and conforming 
     amendments to section 103(b) of title 23, United States Code.
       Subsection 106(f) makes technical amendments to 22 U.S.C. 
     103.
       Subsection 106(g) states that amendments made by this 
     section shall not affect apportionments made under 23 U.S.C. 
     104 before the date of enactment of this Act.
       Subsection 106(h) directs the Secretary to report to 
     Congress not later than 24 months after the date of enactment 
     of this Act on the condition of and the improvements made to 
     connectors on the National Highway System that serve 
     intermodal freight transportation facilities.
       Subsection 106(i) directs the Secretary to conduct a 
     national competition among children under the age of 14 to 
     design a logo sign for the National Highway System.
       Subsection 106(j) designates certain routes as part of the 
     National Highway System.
       The House bill makes no changes to existing NHS 
     eligibility.
       The Committee encourages the Commonwealth of Virginia to 
     work with Fairfax County, Virginia, to fund right-of-way and 
     preliminary engineering costs associated with the NHS segment 
     for the Fairfax County Parkway. In addition, the Commonwealth 
     should work with the County to ensure that funding for the 
     Fairfax County Parkway does not adversely affect other County 
     projects under the secondary six-year plan.
       The Committee encourages the State of Michigan to designate 
     State Route M-6, commonly known as the South Belt Freeway, as 
     the Paul B. Henry freeway. This designation would acknowledge 
     the contribution that former Congressman Paul B. Henry made 
     to this project and others while serving the Grand Rapids, 
     Michigan, area as a county official, state legislator, and 
     U.S. Representative.
       The Committee encourages the State of California to 
     designate an appropriate State Route in honor of the late 
     Congressman Walter H. Capps.
       There has been strong Federal support for the access road 
     to the Northwest Arkansas Regional Airport, as recently 
     demonstrated with the enactment of section 310(d) of the 
     National Highway System Designation Act of 1995, and the 
     Committee urges the State to advance the project as 
     expeditiously as possible.
       The Committee has approved funds under this Act to continue 
     the Lafayette, Indiana Railroad Relocation Project. The 
     Committee encourages the Indiana Department of Transportation 
     to work with the local sponsors in identifying innovative 
     financing opportunities to complete this project in an 
     expeditious manner.
     Senate amendment
       Section 1121 provides that the National Highway System 
     consists of those routes and transportation facilities 
     depicted on maps submitted by the Secretary with the report 
     ``Pulling Together: The National Highway System and its 
     Connections to Major Terminals.''
       Section 1234 amends 23 U.S.C. 103 to include publicly owned 
     intracity or intercity passenger rail capital projects, 
     including Amtrak, as an eligible activity for National 
     Highway System program funds under the same criteria that 
     apply currently to transit and non-NHS highway projects. NHS 
     funding eligibility is amended also to include natural 
     habitat mitigation and encourage the use of approved private-
     sector mitigation banks for wetlands lost through highway 
     construction. Preference is given, to the extent practicable, 
     to banks if they are in accordance with Federal guidelines on 
     mitigation banking and are within the service area of the 
     impacted wetland.
       This section also adds the following new items to the list 
     of projects eligible for NHS funding: (1) publicly owned 
     intracity or intercity passenger rail or bus terminals, 
     including those owned by Amtrak; (2) publicly owned 
     intermodal surface freight transfer facilities, other than 
     seaports and airports located at, or adjacent to, the NHS or 
     connections to the NHS; (3) infrastructure-based Intelligent 
     Transportation Systems capital improvements; and (4) publicly 
     owned components of magnetic levitation (MAGLEV) systems.
       This section also adds to the list of eligible NHS projects 
     a paragraph applicable only to projects on the Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands, permitting these territories to use 
     their NHS apportionments for any STP-eligible project, any 
     airport, and any seaport.
       Subsection 1001(a) amends 23 U.S.C. 103 to reflect that the 
     National Highway System has been designated by Congress. It 
     consolidates several sections of title 23 regarding 
     Interstate system designations and the process for adding 
     segments to the Interstate. This section addresses 
     Interstate construction funds and unobligated balances of 
     Interstate substitute funds, as these programs no longer 
     exist.
       The NHS consists of an interconnected system of principal 
     arterial routes that serve major population centers and 
     intermodal transportation facilities. Its components include 
     the Interstate System and other urban and rural principal 
     arterials and highways (including toll facilities) that 
     provide motor vehicle access between major population 
     centers, border crossings, intermodal transportation 
     facilities, and routes important to defense within the United 
     States. The mileage of the NHS is limited to 178,250 miles. 
     This mileage is equal to the base amount of 155,000 miles, 
     established in current law, plus the 15 percent increase 
     permitted under current law. The Secretary may make 
     modifications to the NHS routes proposed by a State if the 
     Secretary determines that the modification meets the same 
     criteria established under current law. Modification 
     proposals must be coordinated among the State, local, and 
     regional officials.
       An Interstate System route is to 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. The mileage of the Interstate 
     System is limited to 43,000, an increase from the 41,000 mile 
     limit under current law.
     Conference substitute
       In subsection 1106(a), the Conference directs the Secretary 
     to implement the National Highway System program and the 
     Interstate maintenance program as a combined program, for the 
     purpose of providing States with optimal flexibility in 
     implementing these provisions.
       In subsection 1106(b), [note: there are two subsections 
     1106(b)] the Conference adopts the Senate provisions amending 
     23 U.S.C. 103 concerning (1) the description, components, 
     maximum mileage of and modifications to the National Highway 
     System; (2) the description, design, maximum mileage, and 
     designations of and modifications to the Interstate System; 
     and (3) the treatment of Interstate construction and 
     Interstate substitute funds, with a few modifications. The 
     Conference modifies the Senate provision concerning the 
     description of the NHS to make clear that the system includes 
     the highway routes and connections to transportation 
     facilities, rather than the facilities themselves. The 
     Conference adopts the Senate provision concerning NHS 
     eligibility, with a modification. The substitute does not 
     include eligibility for intracity and intercity passenger 
     rail under this program.
       In subsection 1106(b), [note: the second subsection 
     1106(b)] the Conference adopts a provision allowing to use 
     Interstate Substitute funds under the rules in effect on the 
     day before the enactment of TEA 21.
       In subsection 1106(c), the Conference makes amendments to 
     several sections in title 23,

[[Page H10485]]

     United States Code, to conform those sections to the changes 
     made by section 1106.
       In subsection 1106(d), the Conference adopts the House 
     provision on the intermodal freight connectors study with 
     modifications to clarify that the purpose of the report is to 
     identify impediments to improving intermodal connectors 
     including impediments related to the planning process, 
     availability of funding, and other issues identified by the 
     Secretary.

               Sec. 1107. Interstate Maintenance Program

     House bill
       Section 105 of the House bill amends 23 U.S.C. 119 to 
     modify the Interstate maintenance program to restore 
     reconstruction of segments of the Interstate as an eligible 
     activity. It also eliminates the annual certification 
     requirement, and it updates the listing of routes eligible 
     for funding under the program.
       Section 113 establishes a new program to fund major 
     reconstruction or improvement projects on the Interstate 
     system. In order to be eligible, a project must cost over 
     $200 million or cost more than 50 percent of a State's 
     Federal-aid highway apportionments; it must be ready to go to 
     construction; the State must agree to not transfer funds 
     apportioned under the Interstate maintenance program; and the 
     funds must be obligated within one year. Two thirds of the 
     funds are allocated to the States in the ratio that each 
     State's cost of eligible projects bears to the total national 
     cost of eligible projects. For the years 1998 through 2003, 
     however, those funds are to be distributed based on the 
     Interstate maintenance program formula. The remainder of the 
     funds are allocated on a discretionary basis. If funds cannot 
     be used in any given fiscal year, the extra funds are 
     apportioned to all States as Interstate maintenance funds. 
     Projects must be included within the planning process. The 
     Secretary is required to report on the expected future need 
     to reconstruct the Interstate System and to recommend methods 
     for apportioning the funds.
     Senate amendment
       Section 1118 amends 23 U.S.C. 104 to direct the Secretary 
     to set aside a total of $140 million from the Interstate 
     maintenance and Interstate bridge components of the INHS 
     apportionment, to be obligated at the discretion of the 
     Secretary to States for the resurfacing, restoration, 
     rehabilitation, or reconstruction of any route on the 
     Interstate system or for the replacement, rehabilitation, or 
     seismic retrofit of a highway bridge.
       Section 1118 adds a new paragraph 104(k)(3) to title 23, 
     United States Code, which provides that the Secretary may 
     award funds under this program for Interstate 4R projects to 
     those States the Secretary determines (1) will obligate funds 
     provided under the Interstate maintenance and Interstate 
     bridge components of the INHS apportionment in the fiscal 
     year for which a grant application is submitted, and (2) are 
     willing and able to obligate such funds within a year, apply 
     the funds to a ready-to-commence project, and begin 
     construction work within 90 days after obligation of the 
     funds.
       Section 1118 adds a new paragraph 104(k)(5), in which the 
     Secretary is directed to allocate $10 million in Interstate 
     maintenance component funds set aside under this section to 
     eligible States for Interstate 4R and bridge projects. An 
     eligible State is a State (1) that ranks among the lowest 10 
     percent of all States in per capita personal income, (2) 
     where the ratio of its percentage of total Federal-aid 
     highway program apportionments for fiscal years 1998 through 
     2003 to its percentage of estimated contributions to the 
     highway account of the Highway Trust Fund for the same period 
     is less than 1.00, and (3) where its percentage of total 
     Federal-aid highway program apportionments for fiscal years 
     1998 through 2003 is less than its percentage of total 
     Federal-aid highway program apportionments and allocations 
     under sections 1103 through 1108 of ISTEA and under the 
     Federal lands highways program for fiscal years 1992 
     through 1997.
       Section 1209 amends 23 U.S.C. 119 to (1) change the 
     eligible uses of funds apportioned for the Interstate 
     maintenance component of the INHS program and (2) change the 
     rules regarding the ability to transfer these funds to other 
     Federal-aid highway programs and to use a portion of these 
     funds for the construction of single occupant vehicle lanes.
       Current law allows a State to transfer up to 20 percent of 
     its Interstate Maintenance apportionment to other program 
     categories without the Secretary's approval. Transfers above 
     the 20 percent amount need to be approved by the Secretary. 
     Section 1209 would increase the percentage of funds that a 
     State may transfer from the Interstate components of the INHS 
     program to 30 percent. Section 1209 also provides that if a 
     State certifies to the Secretary that the sums apportioned to 
     it for the Interstate maintenance and Interstate bridge 
     components of the INHS program are in excess of its 
     Interstate needs, it may transfer an additional 20 percent of 
     these Interstate component funds to its apportionments under 
     the NHS or STP program.
       This section lists the activities eligible for funds 
     apportioned under the Interstate maintenance and Interstate 
     bridge components of the INHS formula, which include 
     intelligent transportation systems (ITS) capital 
     improvements.
       In general, this section continues the prohibition against 
     using apportionments provided under the Interstate components 
     of the INHS program for the construction of new travel lanes 
     that are not high occupancy vehicle (HOV) lanes. This section 
     does allow, however, a State to use 30 percent of its funds 
     apportioned on single-occupant vehicle capacity expansion. 
     States are permitted to use a total of 30 percent of their 
     funds apportioned under the Interstate components of the INHS 
     program for new capacity projects, or these funds may be 
     transferred to other program categories. This provision was 
     added to allow Interstate reconstruction projects that may 
     involve increased capacity to be managed as one contract 
     rather than as two separate contracts, as may be required 
     under some cases in current law.
     Conference substitute
       In subsection 1107(a), the Conference provision adopts 
     language that was included in both the House and Senate bills 
     to expand IM program eligibility to include projects to 
     reconstruct routes on the Interstate system. The Conference 
     also adopts the House provisions updating the listing of 
     routes eligible for Interstate maintenance funds and 
     eliminating the annual certification requirement.
       In subsection 1107(b), the Conference provision amends 23 
     U.S.C. 118 to revise and update the current Interstate 
     discretionary program. Subsection 1107(b) directs the 
     Secretary to set aside $50 million for fiscal year 1998 and 
     $100 million for each of fiscal years 1999 through 2003 
     before apportioning Interstate maintenance funds for 
     resurfacing, restoring, rehabilitating, and reconstructing 
     Interstate routes and toll roads on the Interstate. The 
     provision retains the current provisions in section 118 
     concerning selection criteria, priority consideration for 
     certain routes, and period of availability of discretionary 
     funds.
       Subsection 1107(c) directs the Secretary to work with 
     States and affected metropolitan planning organizations 
     (MPOs) to study the expected condition of the Interstate 
     system over the next 10 years, the needs of States and MPOs 
     in reconstructing and improving their Interstates, and the 
     resources and means to address these needs.
       Subsection 1107(d) makes technical amendments to 23 U.S.C. 
     119.
       The Conference does not adopt the House provision 
     establishing a High Cost Interstate Program.

               Sec. 1108. Surface Transportation Program

     House bill
       Subsection 108(a) clarifies that the Secretary is to 
     implement the surface transportation program.
       Subsection 108(b) makes certain anti-icing and de-icing 
     compositions used on bridges eligible under the surface 
     transportation program.
       Subsection 108(c) makes programs that reduce motor vehicle 
     emissions that are caused by extreme cold start conditions 
     eligible under the surface transportation program.
       Subsection 108(d) makes certain environmental and pollution 
     abatement projects as part of a highway project eligible 
     under the surface transportation program.
       Subsection 108(e) allows up to 15 percent of surface 
     transportation program funds apportioned for areas of less 
     than 5,000 in population to be used on minor collectors.
       Subsection 108(f) changes the program approval process for 
     the surface transportation program from a quarterly to an 
     annual basis.
       Subsection 108(g) extends the current provision requiring 
     the proportional obligation of funds made available for urban 
     areas over the 6-year term of the bill.
       Subsection 108(h) encourages the use of youth corps to 
     perform transportation enhancement projects.
     Senate amendment
       Section 1104 continues the current procedure in subsection 
     23 U.S.C. 133(f) regarding the suballocation of STP funds to 
     urbanized areas. The purpose of this requirement is to ensure 
     that the obligation rate of STP funds for urbanized areas 
     within a State is consistent with the larger obligation rate 
     for all Federal-aid highway apportionments within the State. 
     This section amends current law to require States to comply 
     with obligation rates over two equal 3-year periods, as 
     opposed to the existing requirement of complying over a 
     single 6-year period.
       Subsection 1223(a) amends 23 U.S.C. 133 to require States 
     to set aside 8 percent of their STP funds for transportation 
     enhancement activities. This is a reduction from current law 
     which requires a 10 percent set-aside. This subsection also 
     allows the Secretary to advance transportation enhancement 
     funds without a State's certification of its public outreach 
     involvement process associated with transportation 
     enhancement projects. This provision codifies the Department 
     of Transportation's current administrative policy regarding 
     innovative financing mechanisms applicable to transportation 
     enhancement projects. It gives States additional flexibility 
     by allowing them to calculate the non-Federal share for 
     enhancements projects in several ways: on a project, multiple 
     project, or program basis. A State's average annual non-
     Federal share of transportation enhancement projects must be 
     at least 20 percent; however, because of the new provision, 
     it is feasible for a single project to have a 100 percent 
     Federal share.
       Subsection 1223(b) reduces the current quarterly, project-
     by-project State certification and notification requirements 
     to annual, program-wide approval of each State's project 
     agreement.

[[Page H10486]]

       Subsection 1223(c) eliminates the current requirement in 23 
     U.S.C. 133(e)(3)(A) that payments made by the Secretary to 
     the States under section 133 cannot exceed the Federal share 
     of costs incurred as of the date the State requested payment. 
     Striking this requirement (1) conforms the current provisions 
     of section 133 to the changes made to section 133 by 
     subsection 1223(a) to increase States' flexibility in 
     calculating the non-Federal share of transportation 
     enhancements projects, and (2) permits States to use the same 
     type of flexible non-Federal matching share for STP projects 
     as they are currently permitted to use for Federal transit 
     projects.
       Section 1235 amends 23 U.S.C. 133 to clarify that the 
     eligibility for publicly or privately owned vehicles and 
     facilities used to provide intercity passenger service by bus 
     or rail under the STP program parallels the eligibility of 
     such vehicles and facilities under chapter 53 of title 49, 
     U.S.C. as revised by this Act. It clarifies that the current 
     eligibility under the STP program of highway and transit 
     safety improvements includes noninfrastructure highway safety 
     improvements. This section also amends paragraph 133(b)(3) to 
     make clear that STP funds may be used to fund the 
     modification of existing public sidewalks to comply with the 
     requirements of the Americans with Disabilities Act.
       Section 1235 also adds the following new items to the list 
     of projects eligible for STP funds: (1) publicly owned 
     intercity passenger rail infrastructure, including Amtrak; 
     (2) publicly or privately owned passenger rail vehicles, 
     including Amtrak; (3) infrastructure-based intelligent 
     transportation systems capital improvements; (4) programs to 
     address extreme cold starts; (5) publicly owned magnetic 
     levitation transportation systems; and, (6) environmental 
     restoration and pollution abatement projects carried out as 
     part of transportation projects. This section also expands 
     STP funding eligibility to include natural habitat mitigation 
     under the same circumstances in which wetlands mitigation is 
     currently eligible for STP funds, and establishes a 
     preference for the use of mitigation banking.
       ISTEA was a landmark law in that it gave the States 
     unprecedented flexibility in spending their Federal-aid 
     highway funds. This section increases the flexibility of the 
     original ISTEA by allowing States to use their STP funds on 
     publicly or privately owned passenger rail, including Amtrak, 
     intermodal freight transfer facilities, natural habitat 
     mitigation, capital costs of ITS improvements, and publicly 
     owned components of magnetic levitation (MAGLEV) systems.
       Section 1235 recognizes the diversity and uniqueness of the 
     Nation and all of its transportation needs. The demands of 
     the various regions throughout the United States are 
     different. In the South and Southwest, the sharp growth in 
     population continues to put a strain on that area's 
     transportation infrastructure. In the Northwest United 
     States, older infrastructure and acute congestion increases 
     the need for non-highway modes such as transit and Amtrak. 
     Many of the Western States, by contrast, with their low 
     population density and the great distances involved in 
     travel, rely on highways as their major mode of 
     transportation. The flexibility provided in this section will 
     permit States to use transportation funds to meet their 
     diverse needs.
       Subsection 1806(b) of the Senate bill makes the use on 
     bridges of anti-icing and de-icing compositions that are 
     agriculturally derived, environmentally acceptable, and 
     minimally corrosive eligible for funding under the surface 
     transportation program.
     Conference substitute
       In subsection 1108(a), the Conference provision expands STP 
     eligibility by adopting the provision in both the House and 
     Senate bills on anti-icing and deicing compositions (deleting 
     the requirement that such compositions be agriculturally 
     derived) and extreme cold starts, and adopting several Senate 
     provisions expanding STP eligibility, with some 
     modifications. With respect to the Senate provisions amending 
     STP eligibility, the Conference adopts the provisions on 
     publicly or privately owned vehicles and facilities used to 
     provide intercity passenger service by bus, but excludes the 
     Senate's rail and magnetic levitation system eligibility 
     provisions. Subsection 1108(a) also includes the Senate 
     provisions on modifications to public sidewalks, natural 
     habitat mitigation, infrastructure-based ITS improvements, 
     and environmental runoff and pollution. The Conference does 
     not adopt the Senate's provisions expanding STP eligibility 
     to include unspecified non-infrastructure highway safety 
     improvements.
       In subsection 1108(b), the Conference adopts the Senate 
     provisions (1) allowing the Secretary to advance 
     transportation enhancement funds without States certifying 
     their public outreach involvement process for transportation 
     enhancement projects, and (2) granting States additional 
     flexibility in calculating the non-Federal share of 
     transportation enhancement projects. Subsection 1108(b) also 
     modifies the noncontiguous States exemption from the 
     suballocation requirement of 23 U.S.C. 133(d)(3)(A).
       The Conference finds that the House and Senate provisions 
     that reduce the current quarterly, project-by-project 
     approval process for the surface transportation program to an 
     annual process are  substantively equivalent, and the 
     Conference adopts the Senate language on this subject in 
     subsection 1108(c).
       In subsection 1108(d), the Conference adopts the Senate 
     provision eliminating the voucher-by-voucher 80/20 matching 
     requirement and permitting a more flexible non-Federal match.
       In subsection 1108(e), the Conference adopts the Senate 
     provision regarding surface transportation program 
     allocations in urbanized areas.
       In subsection 1108(f), the Conference adopts the House 
     provision allowing up to 15 percent of STP funds to be used 
     on minor collectors in rural areas, with the modification 
     that the Secretary may suspend the application of this 
     provision upon determining that it is being used excessively.
       In subsection 1108(g), the Conference adopts the House 
     provision encouraging the use of youth corps to perform 
     transportation enhancement projects.
       The Conference does not adopt the Senate provision reducing 
     the percentage of STP funds set-aside for transportation 
     enhancement activities.

                   Sec. 1109. Highway Bridge Program

     House bill
       Subsection 107(a) amends the bridge program apportionment 
     formula to reduce apportionments by taking into account funds 
     transferred from the bridge program to other purposes. This 
     is a reform to help ensure that States do not receive funding 
     to correct bridge deficiencies and then transfer those 
     apportionments to another funding category, and continue to 
     receive annual apportionments to correct such bridges.
       Subsection 107(b) provides that the funds set aside for the 
     discretionary bridge program under section 127(a)(1) of this 
     Act for fiscal years 1998 through 2003 shall be available at 
     the discretion of the Secretary, and that, for fiscal year 
     1998, 25 percent of the discretionary bridge program funds 
     are required to be spent for the seismic retrofit of the 
     Golden Gate Bridge in California, and that, for each of 
     fiscal years 1999 through 2003, not to exceed 25 percent of 
     such funds shall be available only for the seismic retrofit 
     of bridges, including projects in the New Madrid fault 
     region.
       Although the Golden Gate Bridge in California is on the 
     National Highway System, it has generally been the 
     beneficiary of Federal highway assistance only on projects of 
     an extraordinary cost. The seismic retrofit of the Bridge is 
     one such project. The Committee retains its interest in 
     completion of this project and provides funding for the 
     seismic retrofit of the Golden Gate Bridge.
       The Committee notes the catastrophic potential for 
     earthquake damage in the multi-state region affected by the 
     New Madrid Fault and commends the States for intending to 
     incorporate existing innovative, effective, and economical 
     technologies, such as composite materials, in seismic 
     retrofit projects in order to reduce costs and enhance 
     performance.
       The Committee notes the importance of the replacement of 
     the nearly 75-year-old bridge over the Missouri River at 
     Yankton, South Dakota, and encourages the Secretary to 
     consider making funds available for this project under this 
     section.
       Subsection 107(c) extends the off-system bridge set-aside 
     through fiscal year 2003.
       Subsection 107(d) makes the use on bridges of 
     agriculturally derived, environmentally acceptable, and 
     minimally corrosive anti-icing and de-icing compositions 
     eligible for funding under the bridge program.
       Subsection 107(e) technically amends 23 U.S.C. 144(n) to 
     conform to changes made by subsection 107(c).
       The Committee has become aware of the need to increase 
     technical knowledge about the environmental effects of paints 
     and coatings used in transportation projects. It is concerned 
     that limitations might be imposed to reduce the use of 
     certain such paints and coating which would potentially have 
     an adverse effect on the transportation infrastructure. The 
     Secretary is encouraged to ensure that the transportation 
     benefits of these paints and coatings be considered as 
     regulatory actions are taken.
     Senate amendment
       Section 1118 amends 23 U.S.C. 104 to direct the Secretary 
     to set aside a total of $140 million from the Interstate 
     maintenance and Interstate bridge components of the INHS 
     apportionment, to be obligated at the discretion of the 
     Secretary of States for the resurfacing, restoration, 
     rehabilitation, or reconstruction of any route on the 
     Interstate system or for the replacement, rehabilitation, or 
     seismic retrofit of a highway bridge.
       Section 1118 adds a new paragraph 104(k)(1) to title 23, 
     United States Code, which defines the eligible uses of the 
     $140 million set-aside to include bridge projects that exceed 
     $10 million in costs or represent costs that exceed twice the 
     amount of funds that States are required to reserve under 23 
     U.S.C. 144(c).
       Section 1118 also adds a new paragraph 104(k)(2), in which 
     the Secretary is required to set aside $20 million each 
     fiscal year from the I-4R program and allocate it to any 
     State that (1) receives less funding under the bridge 
     apportionment factors used in the Interstate and National 
     Highway System program and the Surface Transportation Program 
     compared with the funds the State received under the bridge 
     program in 1997, and (2) was apportioned at least $125 
     million in bridge funds in 1997. These funds shall be 
     available for highway bridge projects. States that have 
     transferred more than 10 percent of the funds apportioned 
     under the bridge

[[Page H10487]]

     program in 1995 through 1997 to other Federal-aid 
     transportation projects are not eligible for an allocation 
     from this set-aside. New paragraph 104(k)(2) also requires 
     the Secretary to set aside $15 million each fiscal year 
     from the I-4R program and allocate it to any State with 
     bridges having an average life exceeding 46 years as of 
     the date of enactment of this Act.
       Section 1118 also adds a new paragraph 104(k)(4), which 
     provides that, notwithstanding any other provision of law, 
     the Golden Gate Bridge in California is eligible for 
     assistance under the Interstate 4R and bridge discretionary 
     programs.
       Under new paragraph 104(k)(5), as added by section 1118, 
     the Secretary is also directed to allocate $10 million in 
     Interstate maintenance component funds set aside under this 
     section to eligible States for Interstate 4R and bridge 
     projects. An eligible State is a State (1) that ranks among 
     the lowest 10 percent of all States in per capita personal 
     income, (2) where the ratio of its percentage of total 
     Federal-aid highway program apportionments for fiscal years 
     1998 through 2003 to its percentage of estimated 
     contributions to the highway account of the Highway Trust 
     Fund for the same period is less than 1.00, and (3) where the 
     State's percentage of total Federal-aid highway program 
     apportionments for fiscal years 1998 through 2003 is less 
     than its percentage of total Federal-aid highway program 
     apportionments and allocations under section 1103 through 
     1108 of ISTEA and under the Federal lands highways program 
     for fiscal years 1992 through 1997.
       Section 1122 amends 23 U.S.C. 144 to address highway bridge 
     replacement and rehabilitation requirements. While the bridge 
     program authorized in ISTEA is eliminated in the bill, it is 
     replaced with a requirement that States maintain their 
     current funding levels for bridges on the Federal-aid system. 
     States must spend at least an amount equivalent to the 
     funding a State received under the bridge program in fiscal 
     year 1997 for bridges on either the Interstate, the National 
     Highway System, or other Federal-aid roads. States may meet 
     this ``level-of-effort'' requirement annually or over a 4-
     year period. This requirement is extended to off-system 
     bridges as well. An amount equivalent to at least 15 percent 
     of a State's fiscal year 1997 bridge apportionment must be 
     expended on bridges off the Federal-aid system.
       This section also makes eligible the cost to convert an 
     historic bridge for alternative transportation purposes.
       This section defines bridge rehabilitation to include work 
     necessary to address structural deficiencies, functional 
     limitations, and safety defects, including seismic 
     deficiencies.
       Section 1122 also requires the Secretary, in consultation 
     with the States, to inventory all bridges on public roads, 
     including historic bridges on Indian reservation roads and 
     park roads; classify bridges based on safety an 
     serviceability; and assign each bridge a priority for 
     replacement or rehabilitation.
       Section 1122 provides that States are not required to meet 
     the spending requirements of revised 23 U.S.C. 144 by 
     expending certain levels on any particular functional 
     classification of bridges other than the spending requirement 
     for the bridges off the Federal-aid system. Funds expended by 
     a State on Interstate, NHS or Federal-aid system bridges will 
     be credited toward the State's level of effort requirement. 
     States may meet this requirement on a cumulative basis, 
     including the spending requirement for off-system bridges.
       Subsection 1806(a) of the Senate bill makes the use on 
     bridges of agriculturally derived, environmentally 
     acceptable, and minimally corrosive anti-icing and de-icing 
     compositions eligible for funding under the bridge program.
     Conference substitute
       In section 1109, the Conference adopts the House provision 
     amending 23 U.S.C. 144, with the following modifications. For 
     the discretionary bridge program in fiscal year 1998, the 
     Conference substitute sets aside $25 million of bridge 
     program apportionments and provides that such funds shall be 
     available only for the seismic retrofit of the Golden Gate 
     Bridge in California. For each of fiscal years 1999 through 
     2003, the Conference substitute sets aside $100 million of 
     bridge program apportionments and provides that not to exceed 
     $25 million of such funds shall only be available for 
     projects for the seismic retrofit of bridges, including 
     projects in the New Madrid fault region.
       In expanding bridge program eligibility to include anti-
     icing and de-icing compositions, the Conference substitute 
     deletes the reference to agriculturally-derived compositions; 
     environmentally acceptable compositions in general are 
     eligible.
       The Conference does not adopt the Senate provisions in 
     section 1118 further suballocating three specific amounts of 
     funds set aside for I-4R and bridge discretionary projects to 
     States meeting certain eligibility requirements.

  Sec. 1110. Congestion Mitigation and Air Quality Improvement Program

     House bill
       Subsection 110(a) of the House bill clarifies that the 
     Secretary is to implement the CMAQ program.
       Subsection 110(b) makes various changes to 23 U.S.C. 149(b) 
     relating to eligible projects. It makes programs that reduce 
     motor vehicle emissions that are caused by extreme cold start 
     conditions eligible under the CMAQ program and it codifies 
     currently eligible activities under the CMAQ program.
       Subsection 110(c) permits States, metropolitan planning 
     organizations, or other sponsors of CMAQ projects to enter 
     into an agreement with any public, private, or nonprofit 
     entity to cooperatively implement such projects, and to 
     allocate CMAQ funds to such entities. This subsection also 
     defines eligible alternative fuel projects.
       Subsection 110(d) requires the National Academy of Sciences 
     to conduct a study on the effectiveness of the CMAQ program 
     in improving the air quality in nonattainment areas. This 
     subsection makes $500,000 in CMAQ funds available for each of 
     fiscal years 1998 and 1999 for this study. The final report 
     to Congress on this study shall include recommendations for 
     modifications to the program in light of the study results.
       The Committee recognizes the important security, economic, 
     and environmental benefits that are derived from the 
     increased use of renewable fuels. Therefore, the Committee 
     strongly supports the continued use of renewable fuels as a 
     key component of our nation's transportation policy. The 
     Committee encourages the use of a variety of transportation 
     approaches to clean air problems. Urban areas should consider 
     the variety of options available to them, such as the use of 
     vehicles that use alternative fuels (including innovative 
     fuels such as bio-diesel) and to use CMAQ funds to support 
     the infrastructure needed for such vehicles.
     Senate amendment
       Section 1123 of the Senate bill amends 23 U.S.C. 149 to 
     continue the CMAQ program and maintains the basic eligibility 
     criteria for this program. As in current law, only those 
     projects or programs that the Secretary, in consultation with 
     the EPA Administrator, determines are likely to contribute to 
     the attainment of a national ambient air quality standard or 
     the maintenance of such a standard are eligible for CMAQ 
     funds.
       Subsection 1123(a) technically amends subsection 149(a) to 
     reflect that, since the CMAQ program is already established, 
     the Secretary is to implement the program.
       Subsection 1123(b) amends current section 149(b) to extend 
     the eligibility for CMAQ funding to include carbon monoxide 
     nonattainment areas, (2) all carbon monoxide and ozone 
     maintenance areas, (3) areas classified as submarginal ozone 
     nonattainment areas, and (4) extreme cold start programs.
       Subsection 1123(c) strikes current section 149(c) and 
     inserts a new section that modifies the eligible uses of CMAQ 
     funds. A State with a nonattainment area or maintenance area 
     that received the minimum apportionment under 23 U.S.C. 
     104(b)(2) can use that amount of its apportionment that is 
     not attributable to its nonattainment or maintenance area 
     population on any project in the State eligible for STP 
     funds. Consistent with current law, a State that does not 
     have and never has had a nonattainment area may use its CMAQ 
     funds for any project eligible for STP funds.
       Subsection 1123(d) amends 23 U.S.C. 120(c) to exclude 
     projects funded with CMAQ apportionments from the list of 
     safety projects eligible for 100 percent Federal 
     participation. As a result, the standard Federal share 
     provisions of 23 U.S.C. 120(a) and (b) that apply to all 
     other CMAQ projects would apply to these projects as well.
       Section 1502 permits States, metropolitan planning 
     organizations, or other sponsors of CMAQ projects to enter 
     into an agreement with any public, private, or nonprofit 
     entity to cooperatively implement such projects, and to 
     allocate CMAQ funds to such entities. This section also 
     defines eligible alternative fuel projects.
     Conference substitute
       The Conference substitute adopts provisions from both the 
     House and Senate bills.
       In subsection 1110(a) the Conference adopts the provision 
     included in both the House and Senate bills clarifying that 
     the Secretary's role is to implement the CMAQ program.
       In subsection 1110(b), the Conference adopts the House and 
     Senate provisions amending 23 U.S.C. 149(b) regarding CMAQ 
     eligibility to include programs that reduce motor vehicle 
     emissions caused by extreme cold start conditions and adopts 
     the House eligibility provision for projects that were 
     eligible under section 149 on the day before the date of 
     enactment of new paragraph 149(b)(6). The Conference 
     substitute also provides that projects or programs that 
     improve traffic flow are eligible for CMAQ funds.
       In subsection 1110(c), the Conference adopts the Senate 
     provision regarding the eligible uses of CMAQ funds by States 
     receiving the minimum CMAQ apportionment.
       In subsection 1110(d), the Conference adopts the provisions 
     in both the House and Senate bills regarding partnerships 
     with nongovernmental entities and alternative fuel projects, 
     with a modification that directs the Secretary to determine 
     whether certain water-phased hydrocarbon fuel emulsion 
     technologies reduce emissions of hydrocarbon, particulate 
     matter, carbon monoxide, or nitrogen oxide, from motor 
     vehicles.
       In subsection 1110(e), the Conference adopts the House 
     provision regarding the study of the effectiveness of the 
     CMAQ program, with the following modifications: (1) the 
     Administrator of the Environmental Protection Agency shall 
     participate in the study; and (2) the elements to be examined 
     in the study are expanded to include (a) an evaluation of the 
     air quality impacts of emissions from motor vehicles, (b) an 
     evaluation of the negative effects of traffic congestion, (c) 
     a comparison of the costs of

[[Page H10488]]

     achieving air pollution emissions reductions under the 
     program to the costs that would be incurred if similar 
     reductions were achieved by other measures, and (d) 
     recommendations to expand the scope of the program to address 
     traffic-related improvements not currently covered by the 
     program.

                        Sec. 1111. Federal Share

     House bill
       Subsection 120(a) amends 23 U.S.C. 120(c) to provide that 
     the Federal share of the cost of priority control systems for 
     transit vehicles at signalized intersections may be 100 
     percent.
       Subsection 120(b) amends title 23 to allow a State to use 
     revenues generated through tolls as its non-Federal matching 
     share of projects costs funded under title 23 (other than 
     emergency relief projects) or projects under chapter 53 of 
     title 49, United States Code. A State may do so only if it 
     agrees to enter into an agreement with the Secretary to 
     ensure that the State maintains its non-Federal capital 
     expenditures at or above the average level for the previous 
     three years. This is a continuation of a program established 
     by ISTEA.
       Subsection 134(c) technically amends the Federal share 
     provisions of 23 U.S.C. 120(a) and (b) to move from a strict 
     percentage to a limitation. This change allows for an 
     increased non-Federal share at a State's option. It does not 
     allow the Secretary to impose a lower Federal matching share. 
     This change also conforms the Federal share language of 
     section 120 to the revised, more flexible language in 23 
     U.S.C. 121 (as amended by section 1302 of the Conference 
     substitute) concerning payments to States for construction.
     Senate amendment
       Subscetion 1112(a) amends 23 U.S.C. 120 to allow a State, 
     if it chooses, to reduce the Federal share of a Federal-aid 
     highway project. This change will give States the flexibility 
     to carry out more projects than would be possible with a 
     straight 20 percent non-Federal share. Nothing in this 
     section is intended to require a State to lower the Federal 
     share payable on any project funded under this title. Section 
     1112(a) also codifies in 23 U.S.C. 120 a provision 
     established in section 1044 of ISTEA which allows States to 
     apply all revenues used for specified capital improvements to 
     their non-Federal share requirement for title 23 projects 
     (other than emergency relief projects). To receive this 
     credit, a State must meet a maintenance of effort test, and 
     therefore, must maintain its average non-Federal 
     transportation capital expenditure at or above the level of 
     such expenditures for the preceding three fiscal years. The 
     provision allows a State to drop a ``high year'' from the 
     three year maintenance of effort test, if that year is at 
     least 130 percent greater than the average for the 2 other 
     preceding years.
       Paragraph 1112(b)(1) makes conforming amendments to 23 
     U.S.C. 130 concerning railway highway grade crossing 
     projects.
     Conference substitute
       In subsection 111(a), the Conference adopts the Senate 
     provision giving States the option to determine a lower 
     Federal share for a project than the one determined under 23 
     U.S.C. 120(a) and (b). The Conference does not adopt the 
     House provision technically amending the Federal share 
     provisions in 23 U.S.C. 120(a) and (b).
       In subsection 1111(b), the Conference adopts the House 
     provision permitting an increased Federal share of project 
     costs for priority control systems for transit vehicles under 
     23 U.S.C. 120(c).
       In subsection 1111(c), the Conference adopts the nearly-
     identical House and Senate provisions concerning States using 
     toll revenues as a credit for the non-Federal share of 
     project costs, with modifications. The Conference provision 
     includes the Senate bill's exception from the standard 
     maintenance of effort test for States where any one of the 
     preceding 3 fiscal years' non-Federal transportation capital 
     expenditures were more than 30 percent above the average 
     level of such expenditures for the remaining 2 preceding 
     fiscal years. The Conference provision also clarifies that 
     payments made by the State for issuance of transportation 
     related bonds are considered non-Federal transportation 
     capital expenditures.
       In subsection 1111(d), the Conference adopts the Senate's 
     conforming amendments to 23 U.S.C. 130 concerning railway 
     highway grade crossing projects.

                 Sec. 1112. Recreational Trails Program

     House bill
       Section 114 codifies the Recreational Trails program 
     authorized in ISTEA as 23 U.S.C. 206. The program distributes 
     to States a portion of gas tax revenues attributable to non-
     highway uses for trail projects. The Secretary is required to 
     administer this program for the purpose of providing and 
     maintaining recreational trails. The Federal share of the 
     cost of any recreational trails project under this section 
     shall not exceed 50 percent of project costs, but States are 
     given the flexibility to meet this requirement on a program-
     wide basis, Federal agency project sponsors may pay up to 30 
     percent of project costs, and certain other Federal programs 
     can be used as matching funds. Eligible costs include 
     educational programs, the development, construction and 
     rehabilitation of trails, and the acquisition of easements.
       The 30 percent figures under the Assured Access to Funds 
     requirement and the 40 percent figure under the Diversified 
     Trail Use requirement are minimum requirements that can be 
     exceeded. States should not treat their projects as if they 
     were meeting three mutually exclusive categories. There can 
     be overlap between the Diversified Trail Use requirement and 
     the Assured Access to Funds requirement. There should be 
     diversified motorized use projects, diversified non-motorized 
     use projects, and projects that benefit both motorized and 
     non-motorized use simultaneously.
       Subsection 114(c) repeals the existing Recreational Trails 
     program section in ISTEA.
       Subsction 114(d) terminates the Recreational Trail Advisory 
     Committee by the end of fiscal year 2000.
       Subsection 114(e) directs the Secretary to encourage States 
     to use qualified youth conservation or service corps to 
     construct and maintain recreational trail projects.
     Senate amendment
       Section 1107 continues the existing Recreational Trails 
     Program. Under this provision, the Recreational Trails 
     program is to be funded through contract authority from the 
     Highway Trust Fund. The annual contract authority is as 
     follows: $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. The provision of 
     current law relating to National Recreational Trails funding 
     is repealed.
       The Federal share payable for projects under the 
     Recreational Trails program is increased from 50 percent to 
     80 percent. In addition to the Department of Transportation, 
     other Federal agencies may contribute additional funds for a 
     Recreational Trails project. However, the Federal share, 
     using Recreational Trails funds, for any individual project 
     may not exceed 80 percent; the combined share of all Federal 
     agencies may not exceed 95 percent. The Federal share for 
     this program is consistent with the Federal share available 
     for other Federal-aid highway projects.
       This section retains the current requirement regarding the 
     States' use of annual apportionments: at least 30 percent of 
     Federal funds must be used to facilitate non-motorized 
     recreation; another 30 percent of the funds must be used for 
     motorized recreational purposes. A State must use the 
     remaining amount of funds for diverse recreational purposes, 
     including both motorized and nonmotorized recreational trail 
     use. Experience with implementing Recreational Trail projects 
     in the past has shown that project sponsors for nonmotorized 
     trail projects were significantly disadvantaged in meeting 
     the higher non-Federal matching requirements.
       To the extent practicable and consistent with other 
     requirements, States are to give consideration to projects 
     that benefit the natural environment or mitigate and minimize 
     impacts to the environment.
       The amount that the Secretary may deduct to pay the costs 
     for administration of the program is reduced from three 
     percent to one percent; see section 1102 of the Act.
       Subsection 1208(c) directs the Secretary to terminate the 
     National Recreational Trails Advisory Committee as soon as is 
     practicable. The Advisory Committee was established in ISTEA 
     and directed to (1) review the allocation and utilization of 
     moneys under the Recreational Trails program; (2) establish 
     review criteria for trail-side and trail-head facilities; and 
     (3) recommend changes in Federal policy to advance the 
     purposes of the program. The Advisory Committee has completed 
     these tasks and is no longer necessary. This provision does 
     not affect the State advisory committees that are responsible 
     for implementing the Recreational Trails program.
     Conference substitute
       The Conference substitute adopts the Senate language with 
     several modifications. The substitute clarifies that a State 
     may use funds appropriated under this section for 
     construction on new trails only if the construction is 
     permissible under some other law or is otherwise required by 
     a statewide comprehensive outdoor recreational plan (SCORP) 
     that is in effect. Due to a lack of funding over the past 
     several years, some States may not have updated SCORPs in 
     effect; so the requirement that projects be included in a 
     SCORP would apply only to those States that have a current 
     updated SCORP in effect. This provision also places a cap on 
     the amount that a state can expend on educational programs to 
     promote safety and environmental protection at 5 percent of 
     annual apportionments.
       The substitute provision also modifies existing law to 
     exclude all small States with a total land area of less than 
     3,500,000 acres from the requirement to expend annual 
     apportionments for trails and trails related projects at a 
     minimum of 30 percent for motorized recreation and 30 percent 
     for nonmotorized recreation. The substitute further provides 
     that a State trail advisory committee may waive the 
     motorized/nonmotorized use requirement if the State notifies 
     the Secretary that the State does not have sufficient 
     projects to meet the diversity requirements.
       It includes a modified House provision which allows States 
     to make grants under section 104(h) to private organizations, 
     municipal, county, State and Federal governmental entities 
     after considering guidance from the recreational advisory 
     committee for uses consistent with this section.

[[Page H10489]]

       In subsection 1112(d) the Conference adopts the House 
     provision terminating the Recreational Trails Advisory 
     Committee on September 30, 2000.
       In subsection 1112(e), the Conference adopts the House 
     provision encouraging the use of youth conservation or 
     service corps to perform recreational trails projects.

                      Sec. 1113. Emergency Relief

     House bill
       Paragraph 117(a)(1) of the House bill makes two technical 
     corrections to the Federal share provision for the Emergency 
     Relief (ER) program.
     Senate amendment
       Section 1105 restates the eligibility for highway and 
     bridge projects and the funding requirements for the ER 
     program. ER funds can be used only for emergency repairs done 
     to restore essential highway traffic, to minimize the extent 
     of damage resulting from a natural disaster or catastrophic 
     failure, or to protect the remaining facility. The Secretary 
     is authorized to borrow amounts necessary from any program 
     under title 23 for emergency relief work. Any additional 
     funds used shall be reimbursed with future ER appropriations. 
     The purpose of allowing the Secretary to borrow funds from 
     title 23 programs is to provide a ``cushion'' to allow 
     project work to continue if all ER program funds are used. 
     This section also amends current law, which limits the 
     availability of ER funds to two years, to make them available 
     until expended.
     Conference substitute
       The Conference adopts the House and Senate provisions, with 
     some modifications. The Conference provision includes the two 
     House corrections to the Federal share provisions in 23 
     U.S.C. 120(e) governing the ER program, but provides that the 
     100 percent Federal share provision for ER projects shall 
     apply to repairs accomplished within 180 days, rather than 
     120 days, after the occurrence of the disaster.

              Sec. 1114. Highway Use Tax Evasion Projects

     House bill
       Subsection 122(a) amends section 1040 of ISTEA to specify 
     that all funds provided for the highway use tax evasion 
     program are contract authority. Subsection 122(b) requires 
     funding provided under this section to be used to create an 
     automated fuel reporting system to improve the tracking of 
     motor fuels subject to Federal and State excise taxes. 
     Subsection 122(c) makes a technical amendment to subsection 
     1040(a) of ISTEA to delete an incorrect reference.
     Senate amendment
       Section 1109 eliminates two obsolete tax evasion study 
     requirements in current law. It eliminates the annual report 
     on motor fuel tax enforcement and the report on the 
     feasibility and desirability of using dye and markers to aid 
     in motor fuel tax enforcement activities.
       This section codifies at 23 U.S.C. 143 and expands the 
     successful tax evasion program in section 1040 of ISTEA. It 
     provides $5 million in contract authority for each of fiscal 
     years 1998 through 2003 to continue joint Federal Highway 
     Administration/Internal Revenue Service (IRS)/State motor 
     fuel tax compliance projects across the Nation, as 
     established in section 1040 of ISTEA. In addition, this 
     section permits each State to use up to \1/4\ of 1 percent of 
     its Surface Transportation Program apportionments for 
     programs to halt fuel tax evasion. All costs of tax evasion 
     projects are to be paid by the Federal government.
       This section also authorizes an additional $8 million for 
     the Secretary to complete the development of an excise fuel 
     reporting system, as well as $2 million annually for the 
     operation and maintenance of the system. This system will 
     provide essential information regarding data on import and 
     refinery production of motor fuel to compare with terminal 
     fuel receipts and fuel deliveries. This new program, along 
     with the continuing program, is necessary to help ensure that 
     the successful, coordinated regional and national approach to 
     combat fuel tax fraud can continue and improve.
     Conference substitute
       The Conference provision adopts the Senate provision with 
     some modifications. The Conference substitute expressly 
     provides the excise fuel reporting system with contract 
     authority, authorizes a single, annual lump sum amount of 
     funding for fuel tax evasion projects each year ($10 million 
     in fiscal year 1998 and $5 million for each of fiscal years 
     1999 through 2003), and provides that priority as to the use 
     of such funds shall be given to the establishment and 
     operation of an automated fuel reporting system by the IRS.

                Sec. 1115. Federal Lands Highway Program

     House bill
       Subsection 117(a) amends 23 U.S.C. 120 to enable Federal 
     land managing agencies to pay the non-Federal share of any 
     Federal-aid highway project. Similarly, Federal lands 
     highways program funds may be used as the non-Federal share 
     of any Federal-aid project providing access to or within 
     Federal or Indian lands.
       Subsection 117(b) amends 23 U.S.C. 202 to provide for 
     separate allocations for public lands highways and for forest 
     highways. ISTEA established them as one program with 
     different methods of distribution. This subsection 
     reconstitutes them as separate programs and sets forth the 
     method of allocating funds for the two programs. The public 
     lands funds are allocated through an administrative formula. 
     The forest highway program allocation is based on a statutory 
     formula. This subsection also provides that, for fiscal year 
     2000 and thereafter, all Indian reservation roads funds shall 
     be allocated in accordance with a formula established in 
     regulations development under a negotiated rulemaking 
     procedure.
       Subsection 117(c) amends 23 U.S.C. 203 to clarify what 
     constitutes the point of obligation of funds (at which the 
     Federal government is contractually obligated to pay its 
     contribution to project costs) under the Federal lands 
     highways program.
       Subsection 117(d) amends 23 U.S.C. 204 to reflect the new, 
     separate public lands and forest highways programs and to 
     increase the flexibility of transportation planning with 
     respect to Federal lands highways projects. It requires that 
     only regionally significant transportation projects funded 
     from the Federal lands highways program be coordinated with 
     States and metropolitan planning organizations (MPOs), and 
     that, once the Federal lands highways program transportation 
     improvement program (TIP) is approved by the Secretary, the 
     TIP shall be included in the appropriate State and 
     metropolitan planning organization plans without further 
     action by the States or MPOs. Subsection 117(d) also revises 
     23 U.S.C. 204(i) to authorize the Secretary to transfer 
     public lands highways funds to the appropriate Federal land 
     managing agency to cover both the administrative and 
     transportation planning costs of such agency. Subsection 
     117(d) also requires that up to 1 percent of Indian 
     reservation roads funds be set aside for transportation-
     related administrative expenses of Indian tribal governments, 
     and it directs the Secretary to establish a pilot program to 
     permit no more than 10 Indian tribes to apply directly to the 
     Secretary for authority to conduct Indian reservation roads 
     projects.
     Senate amendment
       Section 1106 retains the structure of the Federal lands 
     highways program (FLHP). The process for inclusion of FLHP 
     projects in the Statewide and Metropolitan planning process 
     has been streamlined.
       Section 1106 also allows Federal land management agencies 
     to sue their program funds to provide the non-Federal share 
     of FLHP projects. FLHP project funds may be used to provide 
     the non-Federal share for other title 23 projects undertaken 
     on projects providing access to Federal lands. The 
     streamlining of the planning process under this section 
     should be implemented through the notice, and comment 
     rulemaking process. Because many FLHP projects are 
     constructed, improved on, or maintained by the States, the 
     views of the States are to be considered in this process. 
     Eligibility of FLHP funds is extended to expressly include 
     transit facilities found within public lands. This expanded 
     eligibility is important, as bus systems can reduce 
     congestion an other negative impacts of passenger vehicle 
     traffic within our national parks and other Federal lands.
       Section 1122, the current requirement that States with 
     Indian reservations reserve 1 percent of their bridge program 
     funds for Indian reservation bridges is replaced with a $9 
     million national program to fund improvements to Indian 
     bridges as a set-aside from Indian Reservation Roads funds.
     Conference substitute
       The Conference finds that the House and Senate provisions 
     concerning the use of Federal land management agency and 
     Federal lands highways program funds to apply the non-Federal 
     share of certain projects are substantively equivalent. The 
     Conference adopts the Senate language on this subject in 
     subsection 1115(a).
       In subsection 1115(b), the Conference adopts the House 
     provision amending 23 U.S.C. 202(d) concerning the allocation 
     of Indian Reservation Roads funds in accordance with a 
     formula established by regulation developed through 
     negotiated rulemaking. The Conference provision also replaces 
     the House bill's Indian Reservation Roads pilot program with 
     a requirement that, upon the request of any Indian tribe, all 
     funds authorized for Indian reservation road and bridge 
     projects shall be made available to Indian tribal governments 
     to carry out such projects, in accordance with the Indian 
     Self-Determination and Education Assistance Act. In this 
     subsection, the Conference also adopts the Senate provision 
     replacing the current 1 percent set-aside from States' bridge 
     apportionments with an annual set-aside of Indian Reservation 
     Roads funds as the funding source for Indian reservation road 
     bridges, increasing the amount set aside from $9 million to 
     $13 million.
       The Conference finds that the House and Senate provisions 
     clarifying the point of obligation for Federal lands highways 
     program projects are substantively equivalent. The Conference 
     adopts the Senate language on this subject in subsection 
     1115(c).
       The Conference finds that the house and Senate provisions 
     on streamlined transportation planning and agency 
     coordination are substantively equivalent. The Conference 
     adopts the Senate language on this subject in subsection 
     1115(d). The Conference also adopts the Senate provision 
     expanding the eligible uses of Federal lands highways program 
     funds to include a project to replace the federally-owned 
     bridge over the Hoover Dam and the provision in both the 
     house and Senate bills authorizing the Secretary to transfer 
     public lands highways funds to the

[[Page H10490]]

     appropriate Federal land management agencies for 
     transportation planning for Federal lands.
       In subsection 1115(e), the Conference adopts a Senate 
     proposal to establish a refuge roads program as part of the 
     Federal lands highways program, allocating $20 million for 
     each of fiscal years 1999 through 2003 based on the relative 
     needs of the various refuges in the National Wildlife Refuge 
     System to fund projects to maintain and improve refuge roads 
     and certain other eligible Federal lands highways program 
     projects located in or adjacent to wildlife refuges.
       Subsection 1115(f) makes several amendments to title 23 to 
     conform the provisions of that title to the changes made by 
     this section.

               Sec. 1116. Woodrow Wilson Memorial Bridge

     House bill
       Section 128 amends the National Highway System Designation 
     Act of 1995 to transfer title of the Woodrow Wilson Bridge to 
     the Commonwealth of Virginia, the State of Maryland, and the 
     District of Columbia. This section further provides that the 
     bridge shall not be eligible for high cost Interstate System 
     reconstruction and improvement program funds until such time 
     as the three jurisdictions accept ownership of the bridge.
     Senate amendment
       Section 1120 amends title IV of the National Highway System 
     Designation Act of 1995 (i.e., the Woodrow Wilson Memorial 
     Bridge Authority Act of 1995) to require the Secretary to 
     execute an agreement with the Woodrow Wilson Memorial Bridge 
     Authority or any Capital Region jurisdiction (Virginia, 
     Maryland or the District of Columbia) before funds made 
     available under this section are available for construction 
     of the replacement bridge.
       The agreement is must identify whether the Authority or a 
     Capital Region jurisdiction will accept ownership of the new 
     facility and must include a financial plan that identifies 
     the total cost, schedule, and source of funds necessary to 
     complete the project. The agreement must also (1) require 
     that the project include not more than 12 traffic lanes, 
     including 2 HOV, express bus, or rail transit lanes; (2) 
     include all provisions described in the environmental impact 
     statement or record of decision to mitigate the environmental 
     and other impacts of the project; and (3) require the 
     Authority and Capital Region jurisdictions to fully involve 
     affected local governments in all aspects of the project. The 
     Secretary is authorized to use the funds made available under 
     this section for rehabilitation of the existing Woodrow 
     Wilson Bridge and for the engineering, design, and 
     construction of the replacement bridge.
       The definition of the project is modified to require that 
     the replacement bridge will be the preferred alternative 
     identified in the record of decision in compliance with the 
     National Environmental Policy Act.
       Section 1120 authorizes $100 million for each of fiscal 
     years 1998 and 1999; $125 million for fiscal year 2000; $175 
     million for fiscal year 2001; and, $200 million for each of 
     fiscal years 2002 and 2003 to carry out this section.
     Conference substitute
       In section 1116, the Conference adopts the Senate 
     provision, but modifies the annual authorizations for the 
     project to provide a greater portion of the total $900 
     million authorized for the bridge in the latter years of the 
     6-year authorization period of this Act. Section 1116 also 
     modifies the eligible uses of such funds: none of the funds 
     made available under this section shall be available for 
     construction of the Project before an agreement is executed 
     by the Secretary and the bridge authority and any Capital 
     Region jurisdiction that accepts ownership of the bridge. 
     Prior to the execution of such agreement transferring 
     ownership of the bridge, such funds may be used for pre-
     construction activities for the Project, including right-of-
     way acquisition and early acquisition of construction staging 
     areas, and the maintenance and rehabilitation of the Bridge. 
     Subsection 1120(e) also makes necessary technical corrections 
     to sections 404 and 407 of the Woodrow Wilson Memorial Bridge 
     Authority Act of 1995 to clarify references to any record of 
     decision for the project.

           Sec. 1117. Appalachian Development Highway System

     House bill
       Subsection 112(a) establishes that funds for the 
     Appalachian development highway system (ADHS) shall be 
     allocated to the States based on the latest cost to complete 
     estimate, although no State is to receive less than $1 
     million. This method of distribution can be adjusted by the 
     Appalachian Regional Commission.
       Subsection 112(b) specifies that funds for the ADHS are 
     contract authority.
       Subsection 112(c) changes the Federal share for reimbursing 
     States that have pre-financed segments of the ADHS from 70 to 
     80 percent.
       Subsection 112(d) allows for the deduction, from the funds 
     authorized to carry out this section, of administrative 
     expenses of the Appalachian Regional Commission associated 
     with the ADHS.
       Subsection 112(e) provides for local consultation before 
     certain ADHS corridors in Ohio can be redesignated.
       Senate amendment
       Subsection 1117 provides funds to assist with the continued 
     construction of the Appalachian development highway system 
     located in regions of the 13 States that comprise the 
     Appalachian Regional Commission. A total of $40 million for 
     each of fiscal years 1998 though 2000, $50 million for fiscal 
     year 2001, $60 million for fiscal year 2002, and $70 million 
     for 2003 in contract authority is authorized to carry out 
     this section.
       The Federal share payable for pre-financing costs for 
     Appalachian development highway system projects is increased 
     from 70 percent to 80 percent.
       The Appalachian development highway system map is revised 
     to substitute the Virginia portion of Corridor H with the 
     Virginia portion of the Coalfields Expressway authorize in 
     the National Highway System Designation Act of 1995.
     Conference substitute
       In subsection 1117(a), the Conference adopts the House 
     provision making funds authorized for the Appalachian 
     development highway system available to the 13 Appalachian 
     States based on the latest cost to complete estimate, with a 
     modification deleting the option for the Appalachian Regional 
     Commission to develop an alternative method for distributing 
     such funds. This subsection provides that such funds shall be 
     available to construct highways and access roads in 
     accordance with section 201 of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App. 201.)
       Subsection 1117(b) adopts the provision in both the House 
     and Senate bills providing that the funds authorized to carry 
     out this section are contract authority.
       Subsection 1117(c) adopts the provision in both the House 
     and Senate bills increasing the Federal share of project 
     costs prefinanced by a State from 70 percent to 80 percent, 
     thereby bringing the Federal share for prefinanced projects 
     up to the same level as the standard Federal share for 
     Appalachian development highway system projects.
       Subsection 1117(d) makes alterations to the segments 
     constituting Corridor O in Pennsylvania and provides that the 
     addition to Corridor O designated in this subsection shall 
     not affect estimates of the cost to complete the segment and 
     that the segment substracted from Corridor O in this section 
     may be included on a map of the Appalachian Development 
     Highway System for purposes of continuity only.

     Sec. 1118. National Corridor Planning and Development Program

     House bill
       Subsection 115(a) establishes the National Corridor 
     Planning and Development Program, the purpose of which is to 
     assist States in planning, developing, and constructing 
     highway corridors.
       Subsection 115(b) establishes that eligible corridors are 
     those designated in law as high priority corridors. In fiscal 
     years 1998 through 2000, the Secretary may make, on an 
     interim basis pending identification by Congress as a high 
     priority corridor, allocations to other regional or 
     multistate highway corridors the Secretary determines are 
     likely to improve international or interregional trade, 
     facilitate mobility, or encourage eonomic growth and 
     development in areas underserved by existing highway 
     infrastructure.
       Subsection 115(d) describes activities that are eligible 
     for funding under the program. These include feasibility 
     studies, design activities, corridor planning, location and 
     routing studies, environmental review, coordination 
     activities, and construction.
       Subsection 115(d) requires that any State receiving funds 
     under this program must develop a corridor development and 
     management plan and it lists several elements the plan must 
     contain.
       Subsection 115(e) specifies that the funds authorized in 
     this Act for the corridor program are contract authority.
       Subsection 115(f) defines State to have the meaning such 
     term has under 23 U.S.C. 101.
     Senate amendment
       Section 1116 of the Senate bill establishes three grant 
     programs: (1) border crossing planning incentive grants, (2) 
     trade corridor planning incentive grants, and (3) trade 
     corridor and border infrastructure safety and congestion 
     relief grants. The Federal share of the cost of any project 
     carried out under these grant programs shall not exceed 80 
     percent.
       Under subsection 1116(c), the Secretary is directed to make 
     grants to States to encourage cooperative corridor analysis 
     of and planning for the safe and efficient movement of goods 
     along and within trade corridors and ports of entry. Within 2 
     years of receiving a grant under this subsection, a State 
     shall submit a plan for corridor and port of entry 
     improvements that has been coordinated with the 
     transportation planning activities of other States and 
     metropolitan planning organizations along the corridor. This 
     subsection also $3 million in contract authority for each of 
     fiscal years 1998 through 2003 to carry out this provision.
       In subsection 1116(d), the Secretary is directed to make 
     grants to States or metropolitan planning organizations for 
     transportation projects to relieve traffic congestion or 
     improve enforcement of motor carrier safety laws, provide for 
     continued planning and development of trade corridors, or 
     provide for the safe and efficient movement of goods along 
     trade corridors. In selecting the projects to receive 
     grants under this subsection, the Secretary is directed to 
     consider eleven factors, including the extent to which 
     international truckborne commodities move

[[Page H10491]]

     through each State, the degree of leveraging of Federal 
     funds provided under this section, and the value of the 
     cargo carried by commercial vehicle traffic. $125 million 
     for each of fiscal years 1998 through 2003 is authorized 
     to carry out this program.
       Subsection 1116(g) provides that if the total amount of 
     funds authorized but unallocated for the three grant programs 
     under this section exceeds $4 million at the end of any 
     fiscal year, the amount in excess of $4 million shall be 
     apportioned to all States as STP funds and shall be available 
     for any purpose eligible for funds under the STP program.
     Conference substitute
       The Conference adopts the House provision, with several 
     modifications.
       First, subsection 1118(b) of the Conference provision 
     creates two categories of corridors eligible for funding. The 
     first category is those corridors identified by Congress as 
     high priority corridors in section 1105(c) of the Intermodal 
     Surface Transportation Efficiency Act (ISTEA). The second 
     category consists of corridors selected by the Secretary 
     after considering 6 factors listed. Those factors address: 
     changes in commercial traffic due to the enactment of NAFTA, 
     the extent of international truck-borne commodity movement, a 
     proposed project's potential impact on commercial and other 
     travel time, the extent of leveraging of the Federal grant 
     funds provided under this subsection, and the value of 
     commercial cargo. These factors only apply to the second 
     category of corridors selected by the Secretary.
       Second, in subsection 1118(c), the Conference provision 
     conditions the use of grant funds for environmental review 
     and construction on the Secretary's review of a corridor 
     development and management plan. The plan is intended to 
     ensure that funds be used for projects that have, to the 
     extent possible, completed environmental and financial 
     analyses and therefore are ready to proceed. The plan will 
     also ensure that the corridor program be used to finance 
     useable segments and not result in the construction of 
     corridors unconnected to existing transportation facilities. 
     However, the plan need only be reviewed, not approved by the 
     Secretary.
       Third, the Conference adopts the Senate provision requiring 
     that the corridor planning carried out under this section be 
     coordinated with transportation planning carried out by other 
     States and metropolitan planning organizations along the 
     corridor, and, to the extent appropriate, with the 
     transportation planning activities of Federal land management 
     agencies and tribal, Mexican, and Canadian governments.

          Sec. 1119. Coordinated Border Infrastructure Program

     House bill
       Subsection 116(a) establishes the coordinated border 
     infrastructure and safety program, the purpose of which is to 
     improve the movement of people and goods across the Nation's 
     land borders.
       Subsection 116(b) identified eligible uses for funds under 
     the program. They include construction of facilities, 
     operational improvements, modifying regulatory procedures, 
     and international planning and coordination.
       Subsection 116(c) establishes eight criteria that are to be 
     considered by the Secretary when allocating funds for 
     projects.
       Subsection 116(d) requires that a certain amount of the 
     funds provided for the program be used to construct State 
     motor vehicle safety inspection facilities.
       Subsection 116(e) requires that at least 40 percent of 
     funds are used on projects on the U.S./Canadian border and at 
     least 40 percent of funds are used on projects on the U.S./
     Mexico border; at least 2 projects on each border shall be 
     located at high volume ports of entry.
       Subsection 116(f) specifies that funds made available for 
     this program are contract authority.
       Subsection 116(g) defines ``border region'' and ``border 
     State.''
     Senate amendment
       Section 1116 of the Senate bill establishes three grant 
     programs: (1) border crossing planning incentive grants, (2) 
     trade corridor planning incentive grants, and (3) trade 
     corridor and border infrastructure safety and congestion 
     relief grants. The Federal share of the cost of any project 
     carried out under these grant programs shall not exceed 80 
     percent.
       In subsection 1116(b), the Secretary is directed to make 
     grants to States or MPOs that have certified they are engaged 
     in joint planning with their counterparts in Mexico and 
     Canada for joint planning activities and to improve the 
     movement of people and vehicles through international 
     gateways. This subsection provides $1.4 million in contract 
     authority for each of fiscal years 1998 through 2003 to carry 
     out this grant program.
       In subsection 1116(d), the Secretary is directed to make 
     grants to States or MPOs for projects to relieve traffic 
     congestion; improve enforcement of motor carrier safety laws; 
     or provide for continued planning and development of, and 
     safe movement of goods along, trade corridors. The subseciton 
     includes 11 grant selection factors, including the extent to 
     which commercial vehicle travel has increased at border 
     stations and within States since the enactment of NAFTA, the 
     extent of transportation improvements at the border or ports 
     of entry since the enactment of NAFTA, the expected reduction 
     in travel time at the gateway or port of entry as a result of 
     the proposed project, and the degree of demonstrated 
     coordination with Federal inspection agencies. $125 million 
     is authorized for each of fiscal years 1998 through 2003 to 
     carry out this program.
       Subsections 1116(d) and (e) provide that the General 
     Services Administration (GSA) is the lead Federal agency in 
     the planning and development of border stations. The 
     Secretary, upon receiving a request from the Administrator of 
     GSA and the U.S. Attorney General, is authorized to transfer 
     up to $10 million in each of fiscal years 1998 through 2001 
     to the GSA for the purposes of constructing transportation 
     facilities that are necessary for law enforcement in border 
     States.
       Subsection 1116(g) provides that if the total amount of 
     funds authorized but unallocated for the three grant programs 
     under this section exceeds $4 million at the end of any 
     fiscal year, the amount in excess of $4 million shall be 
     apportioned to all States as STP funds and shall be available 
     for any purpose eligible for funding under the STP program
     Conference substitute
       The Conference adopts the majority of the House section, 
     with several modifications. First, in subsection 1119(b), the 
     Conference provision adds, to the list of eligible uses of 
     funds under this section, the activities of Federal 
     inspection agencies. Second, in subsection 1119(c), the 
     Conference provision (1) adds a new selection criterion from 
     the Senate bill on the degree of demonstrated coordination 
     with Federal inspection agencies and (2) adopts a Senate 
     provision that expands the House criterion examining 
     improvements in vehicle and highway safety and cargo security 
     to be broader than just improvements related to motor 
     vehicles and to encompass highway safety cargo and security 
     in and through gateways and ports of entry.
       The Conference does not adopt the House provisions setting 
     aside funds for State motor vehicle safety inspection 
     facilities or suballocating funding for projects at our 
     borders with Canada and Mexico and for projects at ports of 
     entry with high traffic volume.
       In subsection 1119(d), the Conference adopts the Senate 
     provision permitting the Secretary to transfer no more than 
     $10 million in funding made available to carry out this 
     section and section 1118 to the Administrator of GSA to 
     construct transportation infrastructure necessary for law 
     enforcement in border States.


               high risk road safety improvement program

     House bill
       Subsection 110(a) creates a new program within the Federal-
     aid highway program to fund construction and operational 
     projects that improve the safety of high risk roads. States 
     are to allocate funds under this program to those projects 
     that have the highest benefit. Up to fifty percent of funds 
     under this program can be transferred to each State's 
     National Highway System or Surface Transportation Program 
     apportionments.
       Subsection 110(b) includes a conforming amendment to 
     include the title of this section in the table of sections of 
     title 23, United States Code.
       Subsection 110(c) authorizes a roadway safety awareness and 
     improvement program funded from the high risk road safety 
     program. the activities of the program should be carried out 
     cooperatively between the Department of Transportation, 
     States, and other safety organizations.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference does not adopt the House provision.


                   cooperative federal lands program

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1115 establishes a new section 207 in chapter 2 of 
     title 23, United States Code, which provides a funding source 
     for public roads or bridges owned by States or their 
     political subdivisions that cross, are adjacent to, or 
     provide access to, Federal lands and Indian reservations 
     (including reservoirs owned by the Army Corps of Engineers). 
     The purpose of this program is to supplement the efforts of 
     the Federal government in developing and maintaining roads or 
     bridges that serve federally owned land and Indian 
     reservations (including reservoirs owned by the Army Corps of 
     Engineers).
       The Cooperative Federal Lands Transportation Program 
     ensures that funding will be provided for projects in States 
     where greater than 4.5 percent of the land within the State 
     borders is held in trust or owned by the Federal government. 
     Funds are provided directly to these States for projects that 
     provide access to Federal lands and Indian reservations. This 
     section provides $74 million in contract authority per year 
     from the Highway Trust Fund.
     Conference substitute
       The Conference does not adopt the Senate provision.

[[Page H10492]]

                       performance bonus program

     House bill
       Subsection 123(a) requires the Secretary to develop 
     performance-based criteria for distributing up to 5 percent 
     of Interstate maintenance, bridge program, high risk road 
     safety improvement program, Surface Transportation Program, 
     and Congestion Mitigation and Air Quality Improvement program 
     funds.
       Subsection 123(b) establishes the factors the Secretary 
     shall assess in developing the performance-based criteria.
       Subsection 123(c) requires the Secretary to submit to 
     Congress the criteria developed under this section.
       The mid-course correction legislation provided for under 
     section 508 would include a provision to approve a system of 
     performance bonuses to States pursuant to section 123.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference does not adopt the House provision.


          new york avenue transportation development authority

     House bill
       Section 142 establishes a New York Avenue Development 
     Authority to develop an improvement plan for the New York 
     Avenue Corridor in the District of Columbia. The authority is 
     eligible to receive funding under the National Corridor 
     Planning and Development program.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference does not adopt the House provision.



  Subtitle B--General Provisions

                         Sec. 1201. Definitions

     House bill
       Section 143 organizes the definitions for title 23 
     alphabetically and makes minor technical corrections to the 
     definitions.
       Section 143 also amends the definition of ``transportation 
     enhancement activities.'' It specifies that a transportation 
     enhancement activity must have a direct link to surface 
     transportation. It also expands the definition to allow the 
     removal of graffiti and litter among the list of eligible 
     activities, as well as environmental mitigation to reduce 
     vehicle-caused wildlife mortality while maintaining habitat 
     connectivity. In addition, it adds construction of tourist 
     and welcome centers as an eligible activity.
     Senate amendment
       Section 1114 provides definitions for the terms ``Federal-
     aid highway funds'' and ``Federal-aid highway program.'' 
     These phrases are used throughout title 23, but are not 
     defined in current law. The addition of these clarifying 
     definitions is not intended to change the implementation of 
     any section under current law. The section also reorganizes 
     the definitions for title 23 alphabetically and makes minor 
     technical corrections to the definitions.
       Subsection 1123(e) adds a definition of ``maintenance 
     area'' to 23 U.S.C. 101(a) and makes a conforming amendment 
     to section 149.
       Subsection 1223(d) amends the definition of 
     ``transportation enhancement activities'' in 23 U.S.C. 101(a) 
     to expressly provide that tourist and welcome center 
     facilities associated with scenic or historic highway 
     programs are eligible transportation enhancement projects.
       Section 1231 revises the definition of ``operational 
     improvement'' in 23 U.S.C. 101(a) to include the 
     installation, operation, or maintenance of certain 
     Intelligent Transportation Systems infrastructure projects. 
     The installation, operation or maintenance of communications 
     systems, roadway weather information and prediction systems, 
     and other improvements designated by the Secretary that 
     enhance roadway safety during adverse weather are also 
     incorporated into the revised definition.
       Subparagraph 1404(b)(1)(A) changes the term ``highway 
     safety improvement project'' in 23 U.S.C. 101(a) by deleting 
     the reference to ``highway''.
     Conference substitute
       In section 1201, the Conference provision recognizes the 
     definitions in 23 U.S.C. 101(a) alphabetically and makes 
     minor technical corrections to the definitions.
       The Conference does not adopt the Senate provision defining 
     ``Federal-aid highway funds'' and ``Federal-aid highway 
     program.''
       The Conference adopts the Senate provision amending the 
     term ``highway safety improvement project'' and makes a 
     minor, technical modification to the definition. In carrying 
     out this provision, States should minimize any negative 
     impact on safety and access for bicyclists and pedestrians in 
     accordance with 23 U.S.C. 217.
       The Conference adopts the Senate provision defining 
     ``maintenance area.''
       The Conference does not adopt the Senate provision amending 
     the definition of ``operational improvement.''
       The Conference defines ``refuge road'' as a public road 
     providing access to or within a unit of the National Wildlife 
     Refuge System and for which title and maintenance 
     responsibility is vested in the U.S. Government.
       The Conference also adopts the House provision defining 
     ``transportation enhancement activities,'' with 
     modifications. The substitute requires that transportation 
     enhancement activities relate to, rather than have a direct 
     link to, surface transportation. It does not include the 
     House provision adding graffiti and litter removal as 
     eligible activities. It retains the Senate provision 
     regarding eligibility of tourist and welcome centers. In 
     order to be eligible under the enhancement program, the 
     tourist or welcome center (whether a new facility or existing 
     facility) does not have to be on a designated scenic or 
     historic byway, but there must be a clear link to scenic or 
     historical sites. It also adds the establishment of 
     transportation museums as an eligible activity.

       Sec. 1202. Bicycle Transportation and Pedestrian Walkways

     House bill
       Section 137 amends 23 U.S.C. 217 to make a number of 
     clarifying changes, to require that bicyclists and 
     pedestrians be included in the planning process, and to allow 
     electric bicycles on trails when State or local regulations 
     permit. The provision clarifies the requirements under 23 
     U.S.C. 109(n) related to the impact on non-motorized 
     transportation of a Federal-aid highway project. It also 
     requires that bicycle safety be taken into account when 
     States undertake rail-highway crossing projects under 23 
     U.S.C. 130. Such safety devices shall include installation 
     and maintenance of audible traffic signal and audible signs. 
     This section also requires the Secretary and AASHTO to study 
     design standards for bicycle projects, establishes national 
     bicycle safety education curricula, and requires the 
     Secretary, AASHTO, the Institute of Transportation Engineers, 
     and other interested organizations to issue design guidance 
     for accommodating bicycles and pedestrians.
     Senate amendment
       Section 1110 builds on ISTEA by expanding the amount of 
     funds available to be used to encourage bicycling and walking 
     as alternative modes of transportation. This provision amends 
     23 U.S.C. 217 to include the construction of pedestrian 
     walkways as an eligible use of a State's National Highway 
     System apportionments under the same criteria by which 
     bicycle transportation facilities currently are eligible. 
     This section eliminates the restriction on the use of NHS 
     funds for the construction of bicycle transportation 
     facilities on land adjacent to the Interstate System and 
     amends current law to allow the safe accommodation of 
     bicycles on highway bridges located on fully access-
     controlled highways, if the bridge is being replaced or 
     rehabilitated with Federal funds. The Department is 
     encouraged to work with the States to ensure that bicycling 
     and pedestrian interests are represented in State and MPO 
     decisionmaking.
       This section also provides that bicyclists and pedestrians 
     shall be given consideration in the comprehensive Statewide 
     and metropolitan planning processes, and that the inclusion 
     of bicycle and pedestrian facilities shall be considered, 
     where appropriate, in conjunction with all new construction 
     and reconstruction of transportation facilties.
     Conference substitute
       The Conference adopts the House provision with 
     modifications. The substitute clarifies that safety devices 
     such as installation of audible traffic signals and audible 
     signs shall be considered where appropriate. It also retains 
     the provision in current law, 23 U.S.C. 217(i), which 
     clarifies that eligible bicycle projects must be principally 
     for transportation, rather than recreation, purposes. The 
     Conference provision also adopts the House provision 
     requiring design guidance, with two modifications. First, the 
     substitute clarifies that the guidance must include 
     recommendations to amend and update AASHTO policies relating 
     to highway and street design standards. Second, it extends 
     the deadline for issuance of the guidance to 18 months. The 
     Conference does not adopt the House provision requiring a 
     study of highway and street design standards.

                    Sec. 1203. Metropolitan Planning

     House bill
       Section 124 amends 23 U.S.C. 134 by setting seven general 
     goals and objectives that may be considered in the planning 
     process. They include: supporting economic vitality; 
     increasing safety and security; increasing accessibility and 
     mobility; protecting the environment; integrating the 
     transportation system; promoting efficiency; and preserving 
     existing facilities. These replace the existing list of 
     nineteen planning factors. The language also includes 
     fostering economic growth and development to the list of 
     reasons that is in the national interest to encourage 
     metropolitan planning.
       The section makes a number of technical changes to 
     subsection 134(g) regarding long range plans. It also allows 
     metropolitan planning organizations to include projects that 
     would be funded if additional resources were available. The 
     inclusion of such projects is for illustrative purposes only. 
     The bill requires that a TIP be updated at least every three 
     years. It also allows the metropolitan planning organizations 
     to include projects that they would advance if additional 
     resources were available.
     Senate amendment
       Section 1601 retains the current structure and most of the 
     metropolitan planning provisions found in 23 U.S.C. 134. It 
     retains the

[[Page H10493]]

     current project selection process set forth in ISTEA.
       This section makes the following substantive changes to 
     current law. First, this section streamlines the 16 
     metropolitan planning factors found in current law into seven 
     issues to be considered in the planning process. Second, it 
     gives States flexibility to move projects within a 3-year 
     Transportation Improvement Program without FHWA approval if 
     the Governor and metropolitan planning organization agree. 
     Third, it eliminates the requirement that transportation 
     improvement programs identify the source of funds for 
     individual projects by Federal funding category. Fourth, this 
     section adds freight shippers to the list of stakeholders to 
     be given opportunities to comment on plans and transportation 
     improvement programs (TIPSs). Finally, it provides that, for 
     urbanized areas designated after the enactment of this Act, 
     metropolitan planning area boundaries shall cover at least 
     the urbanized area and the area expected to become urbanized 
     within the 20-year forecast period and shall require the 
     agreement of the Governor and MPO. Such boundaries are not 
     required to include the entire ozone or carbon monoxide 
     nonattaiment areas, as identified under the Clean Air Act.
       Section 1602 reaffirms that the requirements of the 
     National Environmental Policy Act do not apply to State plans 
     and programs developed pursuant to 23 U.S.C. 134 and 135.
     Conference substitute
       The Conference substitute adopts a combination of both the 
     Senate and House provisions. The substitute retains the basic 
     current metropolitan planning structure and processes. As 
     included in both bills, the 16 planning factors are 
     streamlined to seven general factors to be considered in the 
     planning process. In considering the relationship between 
     transportation and quality of life, metropolitan planning 
     organizations are encouraged to consider the interaction 
     between transportation decisions and local land use decisions 
     appropriate to each area. The language clarifies that the 
     failure to consider any specific factor in formulating plans, 
     projects, programs, strategies, and certification of planning 
     processes is not reviewable in court. The Conference 
     substitute also adopts the House provision including economic 
     growth and development as a general requirement in 
     metropolitan planning.
       As included in both bills, freight shippers and providers 
     of freight transportation services are included on the list 
     of persons to be given opportunities to comment on 
     metropolitan long-range plans and programs (TIPs) along with 
     the addition of representatives of users of public transit. 
     The Conference substitute also adopts the House provision 
     allowing MPOs to include an illustrative list of projects 
     that would be included on the TIP if additional resources 
     were available. The illustrative list does not affect the 
     fiscal constraint requirement of the TIP.
       The Conference substitute clarifies that the expansion or 
     designation of existing or new metropolitan planning 
     organization boundaries due to the imposition of any new air 
     quality standards will not automatically occur, and such 
     boundaries will be determined by agreement of the Governor 
     and the affected local governments.
       In subsection 1203(m), the Conference substitute also 
     adopts the Senate provision reaffirming that NEPA does not 
     apply to plans and programs developed pursuant to 23 U.S.C. 
     134. This provision is consistent with current law and 
     practice. To date, State transportation plans and programs 
     developed under section 134 or 135 of title 23, United States 
     Code, and decisions by the Secretary regarding those plans or 
     programs, have not been considered to be Federal actions for 
     purposes of NEPA. Nothing in this provision, however, is 
     intended to prohibit a State from applying NEPA early in the 
     decisionmaking making process for surface transportation 
     projects, including at the planning stage, if it so chooses. 
     Individual projects included in plans or programs continue to 
     be subject to NEPA.

                     Sec. 1204. Statewide Planning

     House bill
       Section 125 amends 23 U.S.C. 135 by setting the scope of 
     the planning process. States, to the extent they determine 
     appropriate, may consider goals and objectives in the 
     planning process, including supporting economic vitality, 
     increasing safety and security, increasing accessibility ad 
     mobility, protecting the environment, integrating the 
     transportation system, promoting efficiency, and preserving 
     existing facilities. These considerations replace the 
     existing planning factors.
       Freight shippers and freight providers are added to the 
     list of groups that shall be allowed a reasonable opportunity 
     to comment on the proposed long-range plan and on the 
     proposed State transportation improvement plan. It requires 
     that in rural areas, the transportation program be developed 
     by the State in cooperation with local elected officials. It 
     also allows the State to include projects that it would fund 
     if additional resources were available. Projects undertaken 
     pursuant to the high risk road safety program are added to 
     the list of projects that must be selected by the State in 
     consultation with affected local officials.
       This section also includes a provision to study the 
     effectiveness of local planning.
     Senate amendment
       Section 1602 retains the current structure and most of the 
     statewide planning provisions found in 23 U.S.C. 135. It 
     retains the current project selection process set forth in 
     ISTEA. This section makes the following substantive changes 
     to current law. First, it streamlines the 20 statewide 
     planning factors found in current law into seven broader 
     issues to be considered in the planning process. Second, it 
     gives States flexibility to move projects within a 3-year 
     transportation improvement program (TIP) without FHWA 
     approval or action if the Governor and metropolitan planning 
     organization agree. Third, it eliminates the requirement that 
     transportation improvement programs must identify the source 
     of funds for individual projects by Federal funding category. 
     Finally, this section adds freight shippers to the list of 
     stakeholders to be given opportunities to comment on plans 
     and statewide transportation improvement programs (STIPs).
       Section 1602 also reaffirms that the requirements of the 
     National Environmental Policy Act do not apply to plans and 
     programs developed pursuant to 23 U.S.C. 134 and 135.
     Conference substitute
       The Conference substitute adopts a combination of both the 
     Senate and House provisions. The substitute retains the basic 
     statewide planning structure and processes. As included in 
     both bills the 20 planning factors are streamlined to seven 
     general factors to be considered in the state planning 
     process. The language clarifies that the failure to consider 
     any specific factor in formulating plans, projects, programs, 
     strategies and certification of planning processes is not 
     reviewable in court.
       As included in both bills, freight shippers and providers 
     of freight transportation services are included on the list 
     of persons to be given opportunities to comment on statewide 
     long-range plans and programs (TIPs), along with the addition 
     of representatives of users of public transit. The Conference 
     substitute also adopts the House provision allowing States to 
     include an illustrative list of projects that would be 
     included in the TIP if additional resources were available. 
     The illustrative list does not affect the fiscal constraint 
     requirements of the TIP.
       The Conference substitute adopts the Senate provision 
     allowing States flexibility to move projects within a three-
     year transportation improvement program without separate 
     approval or action by the Federal Highway Administration if 
     the MPO concurs. The substitute also includes a provision 
     requiring States to consult with local officials with 
     responsibility for transportation when formulating plans and 
     programs.
       The Conference substitute provides for enhanced 
     consultation between local officials and States when 
     compiling the State transportation improvement programs. This 
     consultation may occur through a variety of mechanisms, 
     including, where appropriate, regional development 
     organizations. In certain areas, regional development 
     organizations may serve to ensure the participation of local 
     officials and the public in the planning process in a 
     coordinated manner.
       In subsection 1204(h), the Conference substitute also 
     adopts the Senate provision reaffirming that NEPA does not 
     apply to State plans and programs developed pursuant to 23 
     U.S.C. 135. This provision is consistent with current law and 
     practice. To date, State transportation plans and programs 
     developed under section 134 and 135 of title 23, United 
     States Code, and decisions by the Secretary regarding those 
     plans or programs, have not been considered to be Federal 
     actions for purposes of NEPA. Nothing in this provision, 
     however, is intended to prohibit a State from applying NEPA 
     early in the decisionmaking making process for surface 
     transportation projects, including at the planning stage, if 
     it so chooses. Individual projects included in plans or 
     programs continue to be subject to NEPA.

       Sec. 1205. Contracting for Engineering and Design Services

     House bill
       Subsection 140(a) amends 23 U.S.C. 112 to clarify that 
     quality based selection process requirements for design and 
     engineering services and other contracting procedures will 
     apply unless a State has in the past adopted alternative 
     procedures to increase competition. Requirements must be met 
     for any phase of a project funded in whole or in part with 
     Federal funds. Subsection 140(b) allows a State to procure 
     consultant services under one contract for the preparation of 
     any environmental analysis as well for subsequent engineering 
     and design services if the State has conducted a review of 
     the objectivity of the analysis.
     Senate amendment
       Section 1127 amends 23 U.S.C. 112(b)(2) to promote 
     competition and provide the greatest value for Federal-aid 
     highway projects. It clarifies that the time period for 
     States to have legislatively enacted alternative requirements 
     to Qualifications Based Selection (QBS) Procedures for 
     obtaining engineering and design services has ended. 
     Additionally, it requires that the Federal Acquisition 
     Regulations (FAR) be used for consistent and equitable 
     contract administration, accounting, and audits while 
     providing for the use of FAR QBS simplified acquisition 
     procedures for contracts under $100,000. Finally, 
     clarification is provided that requires the Secretary to 
     establish a certification procedure

[[Page H10494]]

     to ensure that any legislation enacted by a State since 
     November 28, 1995, to exercise its option complies with the 
     time frames and substantive criteria contained in Section 307 
     of the National Highway System Designation Act of 1995.
       Subsection 1225(a) allows a State to procure consultant 
     services under a single contract for preparation of both the 
     environmental analysis and subsequent engineering and design 
     services if the State has conducted an independent multi-
     disciplined review of the objectivity of the analysis.
     Conference substitute
       In section 1205, the Conference adopts a substitute 
     provision, which includes (1) the House and Senate provision 
     striking language from 23 U.S.C. 112(b)(2)(B)(i) and (ii) on 
     the process for adopting alternative requirements to QBS 
     procedures, clarifying that the time for adopting such 
     alternative procedures has passed, and (2) the House 
     provision authorizing and stating the terms under which a 
     State may procure the services of a consultant under a single 
     contract for both environment analyses and engineering/design 
     work for a project.

                    Sec. 1206. Access of Motorcycles

     House bill
       Section 135 specifies that State or local governments may 
     not restrict access of motorcycles to any highway facility 
     for which Federal-aid funds were used.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       In section 1206, the Conference adopts the House provision 
     with modifications to clarify that this provision only 
     applies to Federally-assisted highways open to traffic and to 
     laws that apply only to motorcycles and the primary purpose 
     of which is to restrict access of motorcycles. This provision 
     does not override or affect the applicability of any local 
     jurisdiction's safety laws or such jurisdiction's authority 
     to regulate safety.

  Sec. 1207. Construction of Ferry Boats and Ferry Terminal Facilities

       Subsection 121(a) provides that the funds made available 
     under section 127(a)(3)(C) of the House bill to carry out the 
     ferry boat and ferry terminal program authorized in section 
     1064 of ISTEA shall be available until expended.
       Subsection 121(b) requires the Secretary to conduct a study 
     of ferry transportation in the United States, including the 
     territories, to identify existing ferry operations and to 
     identify potential domestic ferry routes. The provision 
     requires the study to be submitted to Congress.
       Subsection 121(c) amends 23 U.S.C. 129(c) to expand the 
     conditions in which Federal funds may be used in ferry 
     construction to include publicly operated ferry boats and 
     terminal facilities and to permit federally-funded ferries to 
     be leased without the approval of the Secretary.
     Senate amendment
       Subsection 1232 clarifies that the construction of ferry 
     boats and ferry terminal facilities are eligible uses of 
     National Highway System, Surface Transportation Program, and 
     Congestion Mitigation and Air Quality Improvement program 
     funds. This simply clarifies how the program is currently 
     administered and does not amend or weaken any of the 
     underlying eligiblity requirements of the NHS, STP, or CMAQ 
     programs.
       Section 1816 reauthorizes the ferry boat and ferry terminal 
     program in section 1064 of ISTEA.
       Subsection 1817 requires the Secretary to conduct a study 
     of ferry transportation in the United States, including the 
     territories, to identify existing ferry operations and 
     develop information on the ferry routes. The Secretary is 
     required to submit the study to Congress within one year of 
     enactment of this Act.
     Conference substitute
       Subsection 1207(a) amends 23 U.S.C. 129(c) to expand the 
     eligible uses of Federal funds in ferry construction to 
     include publicly operated or majority publicly owned ferry 
     boats and terminal facilities, if the Secretary determines 
     that a majority publicly ferry boart or facility provides 
     substantial public benefits. In subsection 1207(b), the 
     Conference reauthorizes the ferry boat and ferry terminal 
     facilities program in section 1064 of ISTEA, provides that 
     the funds made available to the program shall remain 
     available until expended, and establishes a $20 million 
     annual set-aside for ferry boats, ferry terminal facilities, 
     and approaches to such facilities within marine highway 
     systems that are part of the NHS and as designed for Alaska, 
     New Jersey, and Washington state.
       In subsection 1207(c) the Conference adopts the House 
     provision requiring a study of ferry transportation, with 
     modifications. The substitute adds language to ensure the 
     study includes identification of the potential for high 
     speed and alternative-fueled ferry services. It also 
     requires that the study be submitted to the Committee on 
     the Environment and Public Works of the United States 
     Senate, rather than the Commerce, Science and 
     Transportation Committee.
       The Conference does not adopt the Senate language 
     concerning ferry boat and ferry terminal facility eligibility 
     for NHS, STP, and CMAQ funds.

                          Sec. 1208. Training

     House bill
       Subsection 129(a) amends section 140(a) of title 23 to 
     allow a State to reserve training positions for persons who 
     receive welfare assistance, except that such placement shall 
     not adversely impact current employees or positions.
       Subsection 129(b) expands the list of eligible activities 
     under the training program to include summer transportation 
     institutes and training in highway technology.
     Senate amendment
       Subsection 2009 moves the highway construction training 
     provisions of 23 U.S.C. 140(b) to 23 U.S.C. 506(d) to 
     consolidate the highway education and training provisions in 
     the research subtitle. Proposed subsection 506(d) continues 
     to allow the Secretary to develop and administer highway 
     construction and technology training programs and to develop 
     and fund summer transportation institutes. This section 
     allows the Secretary to deduct up to $10 million each year 
     before making apportionments under section 104(b) for these 
     programs. In developing and administering these training 
     programs, the Secretary may reserve training positions for 
     individuals who receive welfare assistance from a State.
       Subsection 1702 makes a conforming amendment to strike 23 
     U.S.C. 140(b).
     Conference substitute
       In section 1208, the Conference adopts a substitute 
     provision. In subsection 1208(a), the Conference adopts the 
     House provision to permit the Secretary to reserve training 
     slots for welfare recipients, with a modification that any 
     such reservation of training slots shall not preclude workers 
     participating in an apprenticeship, skill improvement, or 
     other upgrading program from being referred to or hired on to 
     highway projects. In subsection 1208(a), the Conference 
     adopts the provision included in both the Senate and House 
     bills to include highway technology training and the 
     development and funding of summer transportation institutes 
     as eligible activities under 23 U.S.C. 140(b). Subsections 
     1208(b) and (c) amend section 140 to clarify the 
     apportionments from which funds may be deducted for highway 
     training and supportive services.

    Sec. 1209. Use of HOV Lanes By Inherently Low-Emission Vehicles

     House bill
       Section 145 authorizes States to permit an electric vehicle 
     with fewer than 2 occupants certified as an Inherently Low 
     Emission Vehicle to operate in high occupancy vehicle lanes 
     until September 30, 2003, and authorizes the State to revoke 
     this permission if the State determines it is necessary.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference adopts the House provision, with a 
     modification eliminating the requirement that the low-
     emission vehicle be only an electric vehicle.

       Sec. 1210. Advanced Travel Forecasting Procedures Program

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1603 establishes a new program, the purpose of 
     which is to provide for the completion of Advanced Travel 
     Forecasting Procedures (ATFP), formerly known as the 
     Transportation Analysis Simulation System (TRANSIMS), and to 
     provide support for early deployment of ATFP programs to 
     State governments, metropolitan planning organizations, and 
     other transportation management areas. The ATFP model is a 
     large-scale travel simulation that will provide a practical 
     mechanism for transportation planning, particularly with 
     respect to congestion, air quality, and safety, including 
     crash prevention. A total of $4 million for fiscal year 1998; 
     $3 million for fiscal year 1999; $6.5 million for fiscal year 
     2000; $5 million for fiscal year 2001; $4 million for fiscal 
     year 2002; and $2.5 million for fiscal year 2003 in contract 
     authority is provided for this section.
     Conference substitute
       The Conference adopts the Senate provision.

       Sec. 1211. Amendments to Prior Surface Transportation Laws

     House bill
       Subsection 134(h) repeals a requirement that the Federal 
     government oversee certain bridge commissions created by 
     Congress in Public Law 87-441. Such duties would be assumed 
     by State and local governments.
       Subsection 136(a) makes certain changes and additions to 
     Section 1105(c) of ISTEA relating to high priority corridors.
       This subsection clarifies that all of ISTEA High Priority 
     Corridor 18 and that portion of High Priority Corridor 20 
     from the vicinity of Carthage, Texas, to Laredo, Texas, at 
     the Mexican border together are part of Interstate Route I-
     69. It also directs States to erect Interstate Route I-69 
     signs along segments that are at Interstate standards and 
     connect to existing Interstates and specifically, along U.S. 
     59 in the Houston area. The National Highway System 
     Designation Act of 1995 designated Corridors 18 and 20 as 
     future Interstates and gave States the authority to erect 
     signs designating them as future Interstates. It is the 
     intent of the Committee

[[Page H10495]]

     that States have the authority to erect signs specifically 
     designating future Interstate Route I-69 along all of 
     Corridor 18 and along the designated portions of Corridor 20.
       As the New York State Department of Transportation submits 
     its plans for the development of Route 219, the Federal 
     Highway Administration is encouraged to consider, as one of 
     the benefits of the project, the economic development 
     opportunities that would be afforded the Seneca Indian Nation 
     located at the junction of Route 219 and Route 17. For 
     example, the design and construction of a facility that 
     included a welcome center that provided traveler and tourist 
     information would be a valuable economic development 
     initiative.
     Senate amendment
       Section 1124 modifies section 355 of the National Highway 
     System Designation Act of 1995 to permit New Hampshire to 
     meet the safety belt use law required under 23 U.S.C. 153 
     through a performance requirement. Through the end of fiscal 
     year 2000, New Hampshire's is deemed to have met the safety 
     belt use requirements of section 153 upon certification by 
     the Secretary that the State has achieved: (1) a safety belt 
     use rate in each of fiscal years 1997 through 2000 of not 
     less than 50 percent; and (2) a safety belt use rate in each 
     succeeding fiscal year thereafter of not less than the 
     national average safety belt use rate.
       Seciton 1206 amends section 205 of the National Highway 
     System Designation Act of 1995 which states that the 
     Secretary shall not require States to use or plan to use the 
     metric system before September 30, 2000. The amendment made 
     by section 1206 allows States to choose when and if to 
     implement the metric system with respect to designing, 
     advertising, or preparing plans, specifications, timetables, 
     or other documents, for a Federal-aid highway project. This 
     section does not require any State to modify its current use 
     of the metric system for Federal-aid highway projects.
       Subsection 1208(a) terminates the right-of-way revolving 
     fund established in 23 U.S.C. 108(c) and provides a closeout 
     period for obligations already authorized from the fund. This 
     program was terminated as a revolving loan fund because of 
     the new rules required of all credit programs in the Credit 
     Reform Act of 1990. Credits based on conversion or 
     reimbursements are to be applied to the Highway Trust Fund 
     rather than to the revolving fund. Twenty-three States 
     currently have active right-of-way revolving fund projects. 
     This section provides for a 20-year close out period from the 
     date that right-of-way funds were advanced to give these 
     States sufficient time to complete these unfinished projects.
       Subseciton 1208(b) terminates a tolling pilot program that 
     has accomplished its intended purpose. Pilot toll agreements 
     that were executed under 23 U.S.C. 129(k) are still valid.
       Subseciton 1208(d) repeals the 1962 Bridge Commission Act, 
     Pub. L. 87-441. This Act relates to bridge commissions and 
     authorities created by an act of Congress. It provides for 
     Federal approval of such commissions' memberships and 
     requires annual audits. A commission ceases to exist by 
     transferring ownership of the bridge to the States. 
     Initially, five bridge commissions were subject to the Act. 
     Today, only one commission remains, the White Country Bridge 
     Commission, which operates the New Harmony Bridge across the 
     Wabash River between Indiana and Illinois. While under the 
     1962 Bridge Commission Act, the FHWA has the authority to 
     appoint commissioners and review the commission's financial 
     operations, these actions could be administered more 
     effectively and efficiently at the State or local level. This 
     provision removes this unnecessary Federal oversight of the 
     White County Bridge Commission.
       Section 1802 amends subsection 1105(c) of ISTEA to modify a 
     high priority corridor route in Louisiana.
       Section 1810 allows the Secretary of Transportation, the 
     Federal Railroad Administrator, and their designees to serve 
     as ex-officio members of the Board of Directors of the 
     Pennsylvania Station Redevelopment Corporation.
       Seciton 1811 allows the Secretary of Transportation, the 
     Federal Railroad Administrator, and their designees to serve 
     as ex-officio members of the Board of Directors of the Union 
     Station Redevelopment Corporation.
       Section 1814 amends paragraph 1105(c)(18) of ISTEA to 
     modify a high priority corridor.
     Conference substitute
       In subsection 1211(a), the Conference adopts the Senate 
     provision on the Pennsylvania Station Redevelopment 
     Corporation.
       In subsection 1211(b), the Conference adopts the Senate 
     provision on the Union Station Redevelopment Corporation.
       In subsection 1211(c), the Conference adopts the Senate 
     provision on safety belt use law requirements, with a minor 
     technical amendment.
       In subsection 1211(d), the Conference adopts the Senate 
     provision permitting metric conversion at the States' option.
       In subsection 1211(e), the Conference adopts the Senate 
     provision terminating the right-of-way revolving fund.
       In subsection 1211(f), the Conference adopts the Senate 
     provision terminating the pilot toll collection program.
       In subsection 1211(g), the Conference finds that provisions 
     in both the House and Senate bills repealing a 1962 bridge 
     commission act to be substantially equivalent and adopts the 
     Senate language.
       In subsection 1211(h), the Conference adopts the House and 
     Senate provisions making changes and additions to subsection 
     1105(c) of ISTEA concerning high priority corridor routes, 
     with several modifications.
       Subsection 1211(i) directs the Secretary to conduct a 
     feasibility study for a certain future corridor segment and 
     direct consideration of Highway 99 in I-69 studies.
       Subsection 1211(j) modifies the scope of a project 
     authorized under the Surface Transportation and Uniform 
     Relocation Assistance Act of 1987.
       In subsection 1211(k), the Conference adopts the House 
     provision repealing section 146 of the Surface Transportation 
     Assistance Act of 1982 relating to lane restrictions.
       Subsection 1211(l) amends section 1045 of ISTEA relating to 
     a substitute project in Wisconsin.

                        Sec. 1212. Miscellaneous

     House bill
       Subsection 129(c) establishes a motor carrier operator 
     training facility in Minnesota.
       Subsection 129(d) establishes a motor carrier operator 
     training facility in Pennsylvania.
       Subsection 132(a) authorizes the Secretary to fund the 
     production of a documentary about infrastructure to promote 
     infrastructure awareness. A total of $1 million in contract 
     authority is authorized for each of fiscal years 1998 through 
     2000 from the Highway Trust Fund, other than the Mass Transit 
     Account, to carry out this project.
       Subsection 134(g) amends 23 U.S.C. 302 to clarify that 
     section 302 does not limit reimbursement of eligible indirect 
     costs to State and local governments. This will make the 
     Federal-aid highway program consistent with other Federal 
     programs, reducing an administrative burden caused by 
     requiring States to develop separate accounting systems.
       Subsection 134(i) amends section 1023 of ISTEA to extend an 
     axle weight limitation exemption for mass transportation 
     buses. This subsection also amends the vehicle weight 
     provisions in 23 U.S.C. 127 with respect to certain cargo in 
     the States of Colorado and Louisiana and with respect to 
     certain highways in New Hampshire and Maine.
     Senate amendment
       Section 1410 directs the Secretary to analyze the safety, 
     infrastructure, cost recovery, environmental, and economic 
     implications of the operation of heavier weight vehicles on 
     Interstate Route 95 in Maine and New Hampshire and 
     establishes a temporary moratorium on the withholding of 
     funds from Maine and New Hampshire under 23 U.S.C. 127.
       Section 1704 makes technical corrections to 23 U.S.C. 302. 
     It changes the term ``State highway department'' to ``State 
     transportation department'' to emphasize and reflect the 
     intermodal focus of these departments. It eliminates the 
     requirement for a secondary road unit as there is no longer a 
     secondary system and secondary plans have been eliminated. It 
     also establishes that compliance with section 302, as revised 
     by this section shall have no effect on the eligibility of 
     costs. This subsection eliminates 302(b) regarding the 
     construction of projects on the secondary system.
     Conference substitute
       In subsection 1212(a), the Conference adopts the Senate 
     provision amending 23 U.S.C. 302, concerning State 
     transportation departments.
       In subsection 1212(b), the Conference adopts the House 
     provision concerning an infrastructure awareness documentary, 
     with modifications. The substitute states that a total of 60 
     percent of the total project cost of $4.8 million will be 
     provided from the Highway Trust Fund and the remaining 40 
     percent is required to be provided by the private sector. 
     Credit is given for funds received to date. The substitute 
     provides a total of $880,000 for fiscal year 1998 and $1 
     million for each of fiscal years 1999 and 2000, and $800,000 
     for fiscal year 2000 from the Highway Trust Fund, other than 
     the Mass Transit Account, for this project.
       In subsection 1212(c), the Conference adopts the House 
     provision concerning the axle weight limitation for mass 
     transportation buses.
       In subsection 1212(d), the Conference adopts the House 
     provision concerning vehicle weight limitations in Colorado, 
     Louisiana, Maine, and New Hampshire, with a modification 
     based on the Senate vehicle weight study provision requiring 
     each State to conduct a study analyzing the economic, safety, 
     and infrastructure impacts of the exemptions provided in this 
     subsection, including the impact of not having such an 
     exemption. $200,000 is provided to each State for the study.
       In subsection 1212(e), the Conference authorizes $2.5 
     million for each of fiscal years 1999 through 2001 for grants 
     to a driver training and safety center.
       In subsection 1212(f), the Conference authorizes funding 
     for grants to establish a welcome center in Point Pleasant, 
     West Virginia.
       In subsection 1212(g), the Conference provides that 
     Minnesota may obligate funds that have been allocated under 
     23 U.S.C. 117 for a project in the State for any other 
     project in the State for which funds are so allocated.
       In subsection 1212(h), the Conference provides that the 
     Federal share of the cost of a

[[Page H10496]]

     project on the Baltimore Washington Parkway shall be 100 
     percent.
       In subsection 1212(i), the Conference directs the Secretary 
     to make grants to a not-for-profit organization engaged in 
     promoting bicycle and pedestrian safety to operate a 
     clearinghouse and establish educational programs on improving 
     bicycle and pedestrian safety.
       In subsection 1212(j), the Conference adopts the House 
     provision establishing a motor carrier operator training 
     facility in Minnesota.
       In subsection 1212(k), the Conference adopts the House 
     provision establishing a motor carrier operator training 
     facility in Pennsylvania.
       In subsection 1212(l), the Conference authorizes funding in 
     fiscal years 1999 and 2000 for the High Priority Las Vegas 
     Intermodal Center.
       In subsection 1212(m), the Conference authorizes funding in 
     fiscal year 1999 for several seismic design, engineering, and 
     deployment projects.
       In subsection 1212(n), the Conference deauthorizes a 
     segment of a navigation project in Biloxi Harbor, 
     Mississippi.
       In subsection 1212(o), the Conference provides a complete 
     waiver from the application of federal environmental statutes 
     to a specified project on Corridor O of the Appalachian 
     development highway system in Pennsylvania.
       The scope of the waiver in the provision, which states that 
     ``the Secretary shall approve and the Commonwealth of 
     Pennsylvania is authorized to proceed with final design, 
     engineering and construction'', means that notwithstanding 
     all federal statutes not otherwise determined in the 
     provision to apply, the state may proceed with all remaining 
     phases of the project. No other federal agency approval or 
     permit is required unless such approval or permit is 
     specified in the provision.
       The phrase ``the Secretary shall approve'' means that the 
     Secretary of Transportation may only approve the plans, 
     specifications and engineering for the project and release 
     funding for the project. The phrase was included to ensure 
     that the Secretary would approve any application for 
     releasing a request for funding for the project since he has 
     a unique responsibility among all federal agencies with 
     respect to a highway project to approve funding. It should 
     not be read to give other federal agencies authority over the 
     project indirectly by any authority they might otherwise have 
     with respect to decisions of the Secretary, nor should the 
     phrase in any way be construed to permit other federal 
     agencies authority over the project since their involvement 
     in the project is waived unless specifically reserved.
       Finally, the provision provides that environmental reviews 
     already performed by the Commonwealth of Pennsylvania satisfy 
     all Federal environmental laws. Any analysis and mitigation 
     measures provided in those reviews, but no others, must 
     remain in effect.
       In subsection 1212(p), the Conference amends the Act of 
     October 21, 1978 (Pub. L. 95-495) regarding the boundary 
     waters canoe area.
       In subsection 1212(q), the Conference authorizes funding 
     from the General Fund for three projects in New York.
       In subsection 1212(r), the Conference provides for the 
     transfer of ownership by the Secretary of the Army of a 
     bridge on U.S. Route 13 in the vicinity of St. Georges, 
     Delaware.
       In subsection 1212(s), the Conference conditions the use of 
     Federal-aid highway funds for a project in Georgia.
       In subsection 1212(t), the Conference directs the Secretary 
     to designate a segment of State Route 26 in Pennsylvania as 
     the Nittany Parkway.

                     Sec. 1213. Studies and Reports

     House bill
       Subsection 133(h) requires the Secretary to conduct a study 
     to determine the practices in the States for specific service 
     food signs.
       Subsection 134(j) requires a study of the impact of truck 
     weight standards on specialized hauling vehicles.
       Subsection 139(b) requires the General Accounting Office 
     (GAO) to evaluate procurement practices and project delivery. 
     The study shall access the impact a utility company's failure 
     to relocate in a timely manner has on the delivery and cost 
     of Federal-aid highway and bridge projects.
       Section 141 directs the Transportation Research Board to 
     conduct a study on the current laws, regulations, and 
     practices regarding truck sizes and weights and to make 
     recommendations, taking into account impacts on the economy, 
     safety, environment and service to communities.
       Section 412 directs the Secretary to conduct a study on the 
     effectiveness and deterrent value of State laws and 
     regulations pertaining to penalties for violations of 
     commercial motor vehicle weight laws. The Secretary shall 
     issue a report to Congress not later than two years after the 
     date of enactment of this Act.
     Senate amendment.
       Subsection 1113(a) requires the GAO to report to Congress 
     on the Department's methodology for determining highway needs 
     using the Highway Economic Requirement System (HERS), a 
     computer program developed to use economic criteria and 
     engineering criteria in estimating highway investment 
     requirements. The GAO is required to provide to Congress, 
     within 3 years of enactment of this Act, an assessment of the 
     extent to which the model is useful in estimating an optimal 
     level of highway infrastructure investment.
       Subsection 1113(b) requires the Comptroller General to 
     submit a report to the Congress on the International 
     Roughness Index (IRI), an index that is being used to measure 
     the pavement quality of the Federal-aid highway system. The 
     IRI is a data input used in the HERS model. Concerns have 
     been raised as to the reliability of the IRI measurement 
     across different manufacturers and types of pavements and 
     this study shall indicate the extent to which the IRI 
     measurement is reliable.
       Subsection 1113(d) requires the GAO to conduct a study on 
     Federal-aid highway procurement practices and project 
     delivery. The study shall access the impact that a utility 
     company's failure to relocate in a timely manner has on the 
     delivery and cost of Federal-aid highway and bridge projects.
       Section 1126 requires the Secretary to conduct a study on 
     the extent and effectiveness of the use by various States of 
     uniformed policy officers on Federal-aid highway construction 
     projects. Some States use police officers extensively on 
     their highway construction projects, while other States use 
     virtually no police officers for work zone traffic control. 
     Work zone safety has been a high priority issue for the FHWA, 
     traffic engineering professionals, and highway agencies. This 
     section requires the Department of Transportation to submit a 
     report to Congress on the results of the study not later than 
     2 years after the effective date of this section.
       Section 1813 requires the Secretary to conduct a 
     comprehensive assessment of the state of transportation 
     infrastructure on the southwest border between the United 
     States and Mexico. The Secretary is required to submit the 
     report to Congress one year after the date of enactment of 
     this Act.
     Conference substitute
       In subsection 1213(a) the Conference adopts the Senate 
     provision concerning the Highway Economic Requirement System.
       In subsection 1213(b), the Conference adopts the Senate 
     provision on the International Roughness Index.
       In subsection 1213(c), the Conference adopts the Senate 
     provision concerning the study of the use of uniformed police 
     officers, with a modification to require that the study be 
     conducted in consultation with law enforcement organizations.
       In subsection 1213(d), the Conference adopts the Senate 
     provision on assessing the state of transportation 
     infrastructure on the southwest border, with a modification 
     to ensure that the assessment of the adequacy of law 
     enforcement and narcotics abatement activities include their 
     relationship to infrastructure in the border area.
       In subsection 1213(e), the Conference adopts the House 
     provision concerning the study of procurement practices and 
     project delivery.
       In subsection 1213(f), the Conference adopts the House 
     provision on specialized hauling vehicles, with a 
     modification to require the study include, but not be limited 
     to, an analysis of the economic, safety, and infrastructure 
     impacts of truck weight standards.
       In subsection 1213(g), the Conference adopts the House 
     provision on specific service food signs, with modifications. 
     The substitute provides language to clarify that 
     recommendations for modifications to the Manual on Uniform 
     Traffic Control Devices for Street and Highways that result 
     from this study should be made only if appropriate.
       In subsection 1213(h), the Conference adopts the House 
     provision on the study of State motor vehicle weight 
     penalties.
       In subsection 1213(i), the Conference adopts the House 
     provision on the study regarding the regulation of weights, 
     lengths, and widths of commercial motor vehicles.
       In subsection 1213(j), the Conference directs the Secretary 
     to work with the State of Oklahoma to carry out a traffic 
     analysis regarding a trade processing center.
       In subsection 1213(k), the Conference directs the Secretary 
     to study the feasibility of providing high speed rail 
     passenger service from Atlanta, Georgia, to Charleston, South 
     Carolina.

                     Sec. 1214. Federal Activities

     House bill
       Subsection 117(e) requires the Secretary, in cooperation 
     with the District of Columbia, the John F. Kennedy Center for 
     the Performing Arts, and the Department of the Interior, and 
     in consultation with other interested persons, to conduct a 
     study of methods to improve pedestrian and vehicular access 
     to the John F. Kennedy Center for the Performing Arts. The 
     subsection authorizes $500,000 for fiscal year 1998 for the 
     study and directs the Secretary to report to Congress on the 
     results of the study by September 30, 1999.
       Subsection 117(f) provides funding to the Smithsonian 
     Institution for transportation-related activities, including 
     exhibitions and educational outreach programs, the 
     acquisition of transportation-related artifacts, and 
     transportation-related research programs, and authorizes $5 
     million annually to carry out these activities.
       Subsection 117(g) directs the secretary to set aside 
     parkways and park highways funds in fiscal years 1998 through 
     2000 for the planning, design, and construction of a visitors 
     center.
     Senate amendment
       The Senate bill contains no comparable provision.

[[Page H10497]]

     Conference substitute
       In subsection 1214(a), the Conference adopts the House 
     provision to study methods to improve pedestrian and 
     vehiclular access to the Kennedy Center.
       In subsection 1214(b), the Conference adopts the House 
     provision funding transportation-related exhibits, artifacts, 
     and research at the Smithsonian Institution, but reduces the 
     annual authorization for these activities from $5 million to 
     $1 million.
       In subsection 1214(c), the Conference adopts the House 
     provision funding the New River Visitors Center.
       In subsection 1214(d), the Conference authorizes and 
     provides for the allocation of $1.5 million in additional 
     contract authority for each of fiscal years 1998 through 2003 
     for each State that has within its boundaries part or all of 
     an Indian reservation having a land area of 10 million acres 
     or more.
       In subsection 1214(e), the Conference directs the Secretary 
     to make an annual $1 million grant to the Minnesota 
     Historical Society for the establishment of the Minnesota 
     Transportation History Network.
       In subsection 1214(f), the Conference authorizes $200,000 
     for fiscal year 1999 for the U.S. Fish and Wildlife Service 
     to resurface the entrance road to the Sachuest Point National 
     Wildlife Refuge.
       In subsection 1214(g), the Conference authorizes $300,000 
     for fiscal year 1999 for the U.S. Fish and Wildlife Service 
     to remove asphalt runways at Ninigret National Wildlife 
     Refuge and $5 million for each of fiscal years 1999 through 
     2003 for the State of Rhode Island to make improvements to 
     the T.F. Green Intermodal Facility.
       In subsection 1214(h), the Conference authorizes $500,000 
     for fiscal year 1999 for the U.S. Fish and Wildlife Service 
     for the Middletown visitor center at Sachuest Point National 
     Wildlife Refuge.
       In subsection 1214(i), the Conference authorizes $75,000 
     for fiscal year 1999 for the U.S. Fish and Wildlife Service 
     to pave the entrance road to the Ninigret National Wildlife 
     Refuge.
       In subsection 1214(j), the Conference authorizes $1 million 
     for each of fiscal years 1999 through 2003 for the U.S. Fish 
     and Wildlife Service for the education center at the Rhode 
     Island National Wildlife Refuge complex.
       In subsection 1214(k), the Conference authorizes $1 million 
     for fiscal year 1999 for the National Park Service to 
     revitalize the Tredegar Iron Works as a visitor center for 
     Richmond National Battlefield Park.
       In subsection 1214(l), the Conference authorizes $800,000 
     for each of fiscal years 1999 through 2003 to the Corps of 
     Engineers for the State of Missouri to use to resurface and 
     maintain city and county roads that provide access to Corps 
     of Engineers reservoirs.
       In subsection 1214(m), the Conference authorizes $250,000 
     for each of fiscal years 1999 and 2000 to the Department of 
     the Interior for the Shenandoah Valley Battlefield National 
     Historic District Commission to use to develop a Civil War 
     battlefield plan for the Shenandoah Valley.
       In subsection 1214(n), the Conference provides that the 
     Administrator of the General Services Administration shall 
     seek the approval of the Senate Committee on Environment and 
     Public Works and the House Committee on Transportation and 
     Infrastructure before taking any action that leads to 
     government ownership of the Department of Transportation's 
     headquarters facility.
       In subsection 1214(o), the Conference authorizes $3 million 
     for each of fiscal years 1999 and 2000 for the environmental 
     review, planning, design, and construction of a historical 
     and cultural visitors center and museum at Fort Peck, 
     Montana.
       In subsection 1214(p), the Conference authorizes $5 million 
     in fiscal year 1999 for the State of Mississippi to use to 
     replace and widen the box bridges on the Natchez Trace 
     Parkway.
       In subsection 1214(q), the Conference authorizes $2.943 
     million in fiscal year 1999 for the Lolo Pass Visitor Center 
     in Idaho.
       In subsection 1214(r), the Conference provides funding for 
     the Puerto Rico highway program for each of fiscal years 1998 
     through 2003. This subsection specifics how such funds shall 
     be administered and states that the amounts treated as being 
     apportioned to Puerto Rico shall be deemed to be required to 
     be apportioned to Puerto Rico for purposes of the imposition 
     of any penalty provisions in titles 23 and 49, United States 
     Code.

      Sec. 1215. Designated Transportation Enhancement Activities

     House bill
       Subsection 117(h) authorizes $400,000 for each of fiscal 
     years 1998 and 1999 for the restoration of the Gettysburg, 
     Pennsylvania, train station.
       Subsection 118(c) authorizes $1.5 million for each of 
     fiscal years 1998 through 2003 to establish a center for 
     national scenic byways in Duluth, Minnesota. This center 
     would provide technical communications and network support 
     for nationally designated scenic byway routes.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       In subsection 1215(a), the Conference adopts the House 
     provision for the restoration of the Gettysburg, 
     Pennsylvania, train station.
       In subsection 1215(b), the Conference adopts the House 
     provision on the scenic byways center in Duluth, Minnesota. 
     It is the Conferees' intent that the Center for National 
     Scenic Byways be staffed by the regional planning agency 
     located in northeastern Minnesota. The regional planning 
     agency located in Northeastern Minnesota has experience in 
     transportation planning, tourism planning, resource planning, 
     economic development, and community planning. The regional 
     planning agency has demonstrated its ability to manage scenic 
     byway projects, develop a technical information network, and 
     provide national leadership in supporting the National Scenic 
     Byways Program.
       In subsection 1215(c), the Conference authorizes $2 million 
     for each of fiscal years 1999 through 2001 for the State of 
     West Virginia to use for the Coal Heritage Scenic Byway for 
     any purpose eligible under 23 U.S.C. 204(h).
       In subsection 1215(d), the Conference authorizes $5 million 
     for fiscal year 1999 and $2 million for each of fiscal years 
     2000 through 2003 to implement traffic calming measures on 
     Route 50 in Fauquier and Loudoun Counties, Virginia.
       In subsection 1215(e), the Conference authorizes $1 million 
     for fiscal year 1999 for a pedestrian bridge over U.S. route 
     29 in Charlottesville, Virginia.
       In subsection 1215(f), the Conference authorizes $600,000 
     for fiscal year 1999 for construction of the Virginia Blue 
     Ridge Parkway interpretive center.
       In subsection 1215(g), the Conference authorizes $2 million 
     for fiscal year 1999 for renovating and preserving the 
     Missouri Route 66 Chain of Rocks Bridge.
       In subsection 1215(h), the Conference directs the Secretary 
     to approve the use of National Highway System and Surface 
     Transportation Program apportionments for the construction of 
     Type II noise barriers on a route in Dekalb County, Georgia.

     Sec. 1216. Innovative Surface Transportation Financing Methods

     House bill
       Section 119 establishes a variable pricing pilot program. 
     The Secretary may enter into cooperative agreements with up 
     to 15 States to conduct and monitor the pilot projects. The 
     Federal share for a pilot program is 80 percent of the total 
     cost of the program, although the Federal share for any 
     portion of a project may be up to 100 percent. The provision 
     authorizes full Federal participation in the start-up, 
     development, and pre-implementation costs associated with a 
     pilot program for up to three years. Single occupancy 
     vehicles that are part of a pilot program may operate in high 
     occupancy vehicle (HOV) lanes. Pilot programs must include an 
     analysis of how the program affects low income drivers.
       Subsection 120(c) creates an Interstate System 
     Reconstruction and Rehabilitation Pilot Program. This program 
     allows up to three facilities to be tolled, provided the toll 
     revenues are used to improve that facility. Any State wishing 
     to participate in the pilot program must enter into an 
     agreement with the Secretary to ensure that no toll revenues 
     are diverted to another facility or purpose. The provision 
     also specifies eligibility and selection criteria for the 
     program.
     Senate amendment
       Section 1108 renames the congestion pricing pilot program 
     as the value pricing pilot program and codifies the program 
     in title 23, United States Code.
       A number of States and local governments have used funds 
     provided under ISTEA to complete feasibility studies and 
     implementation of value pricing projects. This section 
     provides funding and additional flexibility to allow States 
     to continue to implement these projects. In addition, it 
     expands the program, increasing the number of pilot programs 
     eligible for funding from five to 15, and lifting the 
     restriction that only three projects can be conducted on the 
     Interstate System. Funds available under this section may be 
     used for all pre-implementation and design costs to give 
     States more flexibility to study options for different types 
     of value pricing projects.
       This section also includes an exemption from the HOV 
     requirement of 23 U.S.C. 102(b) to permit single occupancy 
     vehicles to operate in HOV lanes if the vehicles are part of 
     a value pricing program.
       It is expected that each value pricing project will include 
     a thorough evaluation of the project's effects, including its 
     impacts on congestion, air quality, transit use, and other 
     social and economic effects.
     Conference substitute
       In subsection 1216(a), the Conference adopts the Senate 
     provision on the value pricing pilot program, with two 
     modifications. First, it prohibits Federal funding of pre-
     implementation, development and startup costs after three 
     years, as provided in the House bill. Second, includes the 
     House provision requiring each pilot program to include, 
     where appropriate, an analysis of the impact of the program 
     on low income drivers. Paragraph 1101(a)(12) authorizes $7 
     million for fiscal year 1999 and $11 million for each of 
     fiscal years 2000 through 2003 for the value pricing pilot 
     program.
       In subsection 1216(b), the Conference adopts the House 
     provision establishing an Interstate System Reconstruction 
     and Rehabilitation Pilot Program.

                         Sec. 1217. Eligibility

     House bill
       Subsection 133(a) makes the improvements and facilities 
     necessary to connect the Ambassador Bridge in Detroit, 
     Michigan, to the

[[Page H10498]]

     Interstate System eligible for funds apportioned for the 
     National Highway System and the Surface Transportation 
     Program.
       Subsection 133(b) makes the Cuyahoga River Bridge in Ohio 
     eligible to receive funds apportioned under the congestion 
     mitigation and air quality improvement program.
       Subsection 133(c) gives the State of Connecticut 
     flexibility in the use of Interstate Construction fund 
     balances. It also gives the State additional obligation 
     authority to use these funds.
       Subsection 133(e) clarifies that private entity 
     expenditures for construction of specific toll roads in 
     Southern California may be credited to the State's non-
     Federal share.
       Subsection 133(f) permits the continued collection of tolls 
     on the International Bridge, Sault Ste. Marie, Michigan.
       Subsection 133(g) makes certain food services eligible to 
     be listed on current logo signs.
     Senate amendment
       Subsection 1105(c) clarifies eligibility under the ER 
     program for a 600-foot bypass for Route 1, south of San 
     Francisco, in San Mateo County, which was and is still 
     subject to periodic landslides and closures.
       Section 1129 provides eligibility for the Ambassador Bridge 
     in Detroit, Michigan, under the surface transportation 
     program and the National Highway System program.
       Section 1804 permits the continued collection of tolls on 
     the International Bridge, Sault Ste. Marie, Michigan.
       Section 1809 requires the Secretary to allow the 
     continuance of commercial operations at certain service 
     plazas on Interstate 95 in Maryland.
     Conference substitute
       In subsection 1217(a), the Conference adopts the Senate 
     provision concerning a project in San Mateo County, 
     California.
       In subsection 1217(b), the Conference adopts the Senate 
     provision on the Ambassador Bridge.
       In subsection 1217(c), the Conference adopts the House 
     provision on the Cuyahoga River Bridge, with a modification. 
     The bridge is eligible to receive funds from the surface 
     transportation program.
       In subsection 1217(d), the Conference adopts the House 
     provision giving Connecticut flexibility in the use of its 
     Interstate Construction funds.
       The Conference finds that the House and Senate provision 
     concerning the collection of tolls on the International 
     Bridge at Sault Ste. Marie, Michigan, are substantively 
     equivalent and adopts the Senate language at 1217(e).
       In subsection 1217(f), the Conference adopts the House 
     provision concerning food service businesses eligible to be 
     included on logo signs.
       In subsection 1217(g), the Conference adopts the Senate 
     provision concerning commercial operations at certain service 
     plazas in Maryland.
       In subsection 1217(h), the Conference directs the Secretary 
     to permit the State of Georgia to conduct a welcome center 
     pilot project in Cobb County, Georgia.
       In subsection 1217(i), the Conference adopts the House 
     provision concerning State matching share credits for two 
     toll road projects in Southern California.
       In subsection 1217(j), the Conference prohibits the 
     collection of tolls on a segment of the Pennsylvania Turnpike 
     for 6 years.
       In subsection 1217(k), the Conference provides that funds 
     authorized in this Act for transportation projects in 
     Mississippi may be used to construct, reconstruct, or 
     rehabilitate rail lines in the vicinity of Vicksburg and 
     Jackson, Mississippi.

 Sec. 1218. Magnetic Levitation Transportation Technology Development 
                                Program

     House bill
       Subsection 312(d) provides $5,000,000 per year for the 
     years 1998 through 2003 for grants for the development of low 
     speed magnetic levitation technology for public 
     transportation purposes in urban areas.
     Senate amendment
       Section 1119 establishes the magnetic levitation technology 
     deployment program (MAGLEV) to: (1) provide financial 
     assistance to conduct pre-construction planning activities 
     for a number of selected projects which meet the eligibility 
     requirements established by the legislation, including 
     involvement in a corridor that exhibits partnership 
     potential; and (2) select one of the planned projects for 
     Federal participation in the costs of design, construction 
     and deployment in revenue service. MAGLEV is defined as 
     systems capable of safe use at a speed in excess of 240 miles 
     per hour.
       Within 180 days of enactment the Secretary is required to 
     solicit applications for financial assistance for eligible 
     projects. The projects selected for financial assistance in 
     this phase of the program must meet stringent eligibility 
     requirements established by the legislation. Project 
     selection will be on the basis of criteria established by the 
     Secretary prior to solicitation of applications.
       Following pre-construction planning activities for selected 
     projects, the Secretary is required to select a single 
     project for Federal participation in the cost of final 
     design, engineering and construction of a segment of the 
     project that can be operated in revenue service. The Federal 
     share of full project costs (including total capital costs of 
     guide ways, stations, vehicles and equipment) shall not 
     exceed 2/3 of total project cost. The use of Federal funds 
     will be restricted to the capital costs of the guide way 
     (excluding stations, vehicles and equipment). The non-Federal 
     share of pre-construction planning activities shall be at 
     least 20 percent.
       This section provides $10 million for fiscal year 1999 and 
     $20 million for fiscal year 2000 in contract authority from 
     the Highway Trust Fund to conduct pre-construction activities 
     for selected projects and other necessary purposes. It also 
     authorizes appropriations from the Highway Trust Fund of $200 
     million for each of fiscal years 2000 and 2001; $250 million 
     for fiscal year 2002; and $300 million for fiscal year 2003. 
     A State is authorized to allocate a portion of its Federal-
     aid highway apportionments under the CMAQ Program or the STP 
     Program to supplement the assistance received under this 
     section or to use the innovative financing provisions of 
     Chapter 2 of this Act.
     Conference substitute
       The Conference adopts the Senate provision with 
     modifications. The substitute increases the contract 
     authority for the program to $15 million for fiscal year 
     1999, $20,000,000 for fiscal year 2000, and $25,000,000 for 
     fiscal year 2001, and it is intended that a portion of these 
     funds can be used for project evaluation. It requires that $5 
     million be made available for grants for research and 
     development of low-speed superconductivity magnetic 
     levitation technology for public transportation purposes.
       The Conference adopts the House provision in title II of 
     the Act.

               Sec. 1219. National Scenic Byways Program

     House bill
       Section 118 directs the Secretary to carry out a National 
     Scenic Byways program and codifies the program at 23 U.S.C. 
     162. To be eligible for the program, a road must be nominated 
     by a State or a Federal land management agency. Funds are 
     available for technical assistance, including planning, 
     development of management plans, and safety improvements. The 
     Federal share is the same as for other Federal-aid highway 
     projects. This program is the continuation of a similar 
     program established by ISTEA.
     Senate amendment
       Section 1501 codifies the National Scenic Byways program at 
     23 U.S.C. 165. Subsection 165(a) directs the Secretary to 
     carry out the National Scenic Byways program and designate 
     roads having outstanding scenic, historic, cultural, natural 
     or archaeological qualities as National Scenic Byways or All-
     American Roads. Criteria for designation have been defined in 
     an FHWA interim policy notice, which was published in the 
     Federal Register in May 1995.
       Subsection 165(b) directs the Secretary to make grants and 
     provide technical assistance to the States to implement 
     National Scenic Byways, State scenic byways, and All-American 
     Roads projects and to plan, design, and develop State scenic 
     byways programs. Subsection 165(c) lists the eight categories 
     of projects eligible for scenic byways funding under this 
     section. Subsection 165(d) allows the Secretary to authorize 
     scenic byways funds only for projects that protect the 
     scenic, historic, recreational, cultural, natural, and 
     archaeological integrity of a highway and adjacent areas.
       Subsection 165(e) provides that the Federal share payable 
     on account of any project under this section shall be 80 
     percent, except that, for projects on Federal or Indian 
     Lands, a Federal land management agency may contribute the 
     non-Federal share payable on such projects. Subsection 165(f) 
     provides contract authority from the Highway Trust Fund of 
     $17 million in each of fiscal years 1998 and 1999; $19 
     million for each of fiscal years 2000 and 2001; $21 million 
     for fiscal year 2002; and $23 million for fiscal year 2003.
     Conference substitute
       In section 1219, the Conference adopts the Senate 
     provision, with a modification to include the House savings 
     clause language, providing that the Secretary shall not 
     withhold a grant or condition receipt of a grant or technical 
     assistance to a State for any scenic byway unless such action 
     is consistent with the authority provided in chapter 1 of 
     title 23. Section 1219 codifies this program at 23 U.S.C. 
     162.
       Paragraph 1101(a)(11) authorizes $23.5 million for each of 
     fiscal years 1998 and 1999, $24.5 million for each of fiscal 
     years 2000 and 2001, $25.5 million for fiscal year 2002, and 
     $26.5 million for fiscal year 2003 for the National Scenic 
     Byways program.

       Sec. 1220. Elimination of Regional Office Responsibilities

     House bill
       Section 507 requires that the Secretary eliminate 
     programmatic responsibility of regional offices of the 
     Federal Highway Administration (FHWA) as part of the agency's 
     efforts to restructure its field offices, including 
     elimination of regional offices, creation of technical 
     resources centers, and delegation to State offices. The 
     Secretary shall begin implementation of a restructuring plan 
     submitted to Congress not later than December 31, 1998.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       In section 1220, the Conference adopts the House provision, 
     with modifications. The Conference substitute permits the 
     Federal

[[Page H10499]]

     Highway Administration to retain programmatic decisionmaking 
     authority at the regional offices for the motor carrier 
     safety program. It also requires the Secretary to give 
     preference to sites that now house FHWA regional offices and 
     that are in locations that minimize the travel distance 
     between technical resource centers and the FHWA division 
     offices they will serve.

 Sec. 1221. Transportation and Community and System Preservation Pilot 
                                Program

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1604 authorizes a new Transportation and Community 
     and System Preservation Pilot Program to investigate and 
     address the relationships between transportation projects, 
     community preservation, and the environment. The pilot 
     program consists of three parts: (1) a comprehensive research 
     program; (2) a planning assistance program to provide funding 
     to States, metropolitan planning organizations (MPOs), and 
     local governments that want to begin integrating their 
     transportation planning with community preservation, 
     environmental protection, and land use policies; and (3) an 
     implementation assistance program to provide funding to 
     States, MPOs, and local governments that have developed 
     state-of-the-art approaches to integrate their transportation 
     plans and programs with their community preservation and 
     environmental planning programs.
       The research program established by subsection 1604(b) 
     examines the experiences of communities in uniting 
     transportation, community preservation, and environmental 
     goals with decisionmaking processes. As part of this 
     research, projects carried out with planning or 
     implementation assistance funds made available by this 
     section shall be monitored and analyzed.
       The planning assistance authorized in subsection 1604(c) is 
     intended to provide financial resources to States and 
     communities that wish to explore integrating their 
     transportation programs with community preservation and 
     environmental programs. In providing this planning 
     assistance, the Secretary is directed to give priority 
     consideration to applicants that demonstrate commitments to 
     public involvement and to bring non-Federal resources to the 
     proposed projects.
       The implementation assistance authorized in subsection 
     1604(d) provides financial resources to States and 
     communities that have established community preservation 
     programs to enable them to carry out projects that address 
     transportation efficiency while meeting community 
     preservation and environmental goals. Any activities eligible 
     for funding under title 23 or chapter 53 of title 49 are 
     eligible for assistance under this program, including 
     corridor preservation activities necessary to carry out 
     transit-oriented development plans or traffic calming 
     measures.
       Subsection 1604(d) authorizes $20 million for each of 
     fiscal years 1998 through 2003 to carry out this program.
     Conference substitute
       In section 1221, the Conference adopts the Senate 
     provision, with some modifications. First, the Conference 
     provision expands the research and planning elements of this 
     program to include (1) the consideration of the role of the 
     private sector in shaping the relationships between 
     transportation, community preservation, and the environment 
     and (2) the examination of ways to encourage private sector 
     development patterns to achieve the program's goals. Second, 
     the Conference provision modifies the funding authorized to 
     carry out this program by authorizing $20 million for fiscal 
     year 1999 and $25 million for fiscal years 2000 through 2003.

               Sec. 1222. Additions to Appalachian Region

     House bill
       Subsection 112(f) adds Elbert and Hart counties in Georgia 
     to the Appalachian region.
     Senate amendment
       Section 1812 amends section 403 of the Appalachian Regional 
     Development Act of 1965 to add Hale county in Alabama, Elbert 
     and Hart counties in Georgia, Yalobusha county in 
     Mississippi, and Montgomery and Rockbridge counties in 
     Virginia to the Appalachian region.
     Conference substitute
       The Conference adopts the Senate provision with 
     modifications adding Macon county in Alabama to the 
     Appalachian region and technically amending section 405 of 
     the Appalachian Regional Development Act to ensure that 
     section 403 of such Act is still in effect.

        Sec. 1223. Transportation Assistance for Olympic Cities

     House bill
       Subsection 130(a) states the purpose of this section is to 
     assist and support States and local governments with surface 
     and aviation-related transportation issues necessary to host 
     international quadrennial Olympic and paralympic events in 
     the United States.
       Subsection 130(b) authorizes the Secretary to give priority 
     to transportation projects related to Olympic events from 
     certain highway and transit discretionary accounts.
       Subsection 130(c) authorizes the Secretary to participate 
     in State and metropolitan planning activities related to 
     Olympic events.
       Subsection 130(d) authorizes the Secretary to provide 
     assistance from funds provided for the general operating 
     expenses of the Federal Highway Administration for the 
     development of an Olympic and Paralympic transportation 
     management plan.
       Subsection 130(e) authorizes the Secretary to provide funds 
     to States and local governments for carrying out 
     transportation projects related to an international 
     quadrennial Olympics. It also establishes the Federal share 
     of the cost of such projects at 80 percent.
       Subsection 130(f) defines State or local government 
     eligibility for Federal funds under this section.
       Subsection 130(g) authorizes the Secretary to give 
     preference in aviation programs for projects that are 
     Olympics related.
     Senate amendment
       Section 1130 authorizes the Secretary to provide assistance 
     to State and local governments with surface transportation 
     planning and projects relating to international quadrennial 
     Olympic or Paralympic events. Subsection 1130(b) provides 
     that the Secretary may give preference, in allocating 
     Interstate and bridge discretionary funds, to transportation 
     projects relating to Olympic or Paralympic events. Subsection 
     1130(c) authorizes the Secretary to participate in 
     transportation planning with States and MPOs on 
     transportation projects relating to Olympic or Paralympic 
     events. Subsection 1130(d) provides that funds made available 
     for highway research, technology, and training programs may 
     be used to develop an Olympic and a Paralympic transportation 
     management plan. Subsection 1130(e) authorizes the Secretary 
     to provide funding to States and local governments for 
     transportation projects relating to an Olympic or Paralympic 
     event, and provides that the Federal share of the cost of 
     each such project shall be 80 percent. Subsection 1130(f) 
     defines State or local government eligibility for Federal 
     funds under this program. Subsection 1130(g) authorizes to be 
     appropriated such sums as are necessary for each of fiscal 
     years 1998 through 2003 to carry out this section.
     Conference substitute
       The Conference adopts the Senate language with a 
     modification expanding the program to include assistance for 
     the Special Olympics International movement.

        Sec. 1224. National Historic Covered Bridge Preservation

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1132 authorizes a new grant program that provides 
     funds to assist the States in their efforts to rehabilitate 
     or repair and to preserve the Nation's historic covered 
     bridges.
       Subsection 1132(a) defines the term ``covered bridge'' as a 
     roofed bridge that is primarily made of wood and includes the 
     roof, flooring, trusses, joints, walls, piers, footings, 
     walkways, support structures, arch systems, and underlying 
     land. It defines the term ``historic covered bridge'' as a 
     covered bridge that is at least fifty years old or is listed 
     on the National Register of Historic Places.
       Subsection 1132(b) directs the Secretary to development and 
     maintain a list of historic covered bridges and collect and 
     disseminate information concerning historic covered bridges. 
     It also directs the Secretary to foster educational programs 
     relating to the history, construction techniques, and 
     contribution to society of historic covered bridges. It also 
     directs the Secretary to sponsor or conduct research on the 
     history of covered bridges. It also directs the Secretary to 
     sponsor or conduct research, and study techniques, on 
     protecting covered bridges from rot, fire, natural disasters, 
     or weight-related damage.
       Subsection 1132(c) directs the Secretary to make a grant, 
     subject to availability, to a State that submits an 
     application. A grant may be made for a project to 
     rehabilitate or repair or preserve a historic covered bridge. 
     It may be made only if, to the maximum extent possible, the 
     project is carried out in the most historically appropriate 
     manner and preserves that existing structure of the bridge, 
     and the project provides for the replacement of wooden 
     components with wooden components.
     Conference substitute
       The Conference adopts Senate amendment.

                     Sec. 1225. Substitute Project

     House bill
       Subsection 144(a) authorizes the Secretary to approve 
     substitute highway and transit projects under the Interstate 
     substitute program in 23 U.S.C. 103(e)(4) in lieu of the 
     Barney Circle Freeway project in the District of Columbia. 
     Subsection 144(b) provides that, upon such approval, the 
     Barney Circle project shall not be eligible for funds under 
     subsection 108(b) of the Federal-aid Highway Act of 1956 and 
     the substitute projects shall be funded from the District of 
     Columbia's unexpended Interstate apportionments and 
     allocations that are not subject to lapse. Subsection 144(c) 
     specifies the Federal share payable on any substitute project 
     approved under this section. Subsection 144(d) requires that 
     any approved substitute project must be under contract for 
     construction, or construction must have commenced, within 4 
     years of the date of enactment of this section.

[[Page H10500]]

     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference adopts the House provision.

        Sec. 1226. Fiscal, Administrative, and Other Amendments

     House bill
       Subsection 134(a) removes three obsolete provisions from 23 
     U.S.C. 115(b). They are a provision related to bond interest 
     on Interstate projects under construction on January 1, 1983, 
     a limitation in the repayment of interest on Interstate and 
     National Highway System projects, and a requirement that the 
     Secretary approve an advance construction project for it to 
     be considered completed.
       Subsection 134(b) removes an outdated provision at 23 
     U.S.C. 118(e) regarding total payments to a State in any 
     fiscal year. In its place, it reinstates a provision that was 
     once in title 23 but was inadvertently omitted when amended 
     by ISTEA. This reinstated provision permits obligations 
     incurred in prior fiscal years that are released in a current 
     fiscal year to be made available for reobligation in such 
     current year.
       Subsection 134(f) strikes an outdated provision at 23 
     U.S.C. 124(b) concerning the construction of toll routes 
     necessary to complete the Interstate System. The provision is 
     no longer needed since the Interstate is complete.
       Subsection 134(e) strikes an outdated provision at 23 
     U.S.C. 126 concerning the use of motor vehicles taxes to fund 
     highway construction projects.
     Senate amendment
       Section 1203 removes an outdated provision from 23 U.S.C. 
     118 and replaces it with a provision that permits obligations 
     incurred in prior fiscal years and released in a current 
     fiscal year to be made available for re-obligation.
       Subsection 1702(a) technically amends title 23, United 
     States Code, to move the title's declarations of policy and 
     definitions to their own sections within title 23.
       Subsection 1702(b) amends 23 U.S.C. 115(b) to strike three 
     out-of-date provisions concerning bond interest and 
     completion of advance construction projects.
       Subsection 1702(c) amends 23 U.S.C. 116 to clarify when a 
     State's duty to maintain a Federal-aid highway shall cease, 
     but does not impose any additional requirement on the State 
     to maintain a highway nor does it relieve any maintenance 
     requirements in current law. It simply clarifies existing 
     policy.
       Subsection 1702(d) technically amends 23 U.S.C. 119(a) 
     concerning Secretarial approval of projects on the Interstate 
     System.
       Subsection 1702(e) amends 23 U.S.C. 124 to strike an out-
     of-date provision on construction of toll roads necessary to 
     complete the Interstate System.
       Subsection 1702(f) strikes 23 U.S.C. 126, an out-of-date 
     provision on the use of motor vehicle and fuel taxes for 
     highway projects.
       Subsection 1702(i) revises 23 U.S.C. 136(m) to provide a 
     definition of ``primary system.''
       Subsection 1702(j) corrects an out-of-date reference to the 
     Federal-aid urban system in 23 U.S.C. 137(a) concerning 
     fringe and corridor parking facilities.
       Subsection 1702(k) makes technical amendments to 23 U.S.C. 
     140 concerning nondiscrimination.
       Subsection 1702(l) technically amends 23 U.S.C. 142(a)(2) 
     concerning Secretarial approval of certain STP projects.
       Subsection 1702(m) strikes an out-of-date provision, 23 
     U.S.C. 147, on priority primary routes.
       Subsection 1702(n) strikes an out-of-date provision, 23 
     U.S.C. 148, on development of a national scenic and 
     recreational highway.
       Subsection 1702(o) strikes out-of-date language from 23 
     U.S.C. 152(e) concerning the apportionment of hazard 
     elimination funds.
       Subsection 1702(p) strikes an out-of-date provision, 23 
     U.S.C. 155, concerning access highways to public recreation 
     areas on certain lakes.
     Conference substitute
       In subsection 1226(a), the Conference finds that the House 
     and Senate provisions striking three out-of-date provisions 
     from 23 U.S.C. 115 are substantively equivalent and the 
     Conference adopts the Senate language with a purely technical 
     modification.
       In subsection 1226(b), the Conference adopts the House 
     provision amending 23 U.S.C. 118 concerning the effect of the 
     release of Federal-aid highway funds.
       In subsection 1226(c), the Conference finds that the House 
     and Senate provisions striking out-of-date language from 23 
     U.S.C. 124(b) on the construction of toll roads are 
     substantively equivalent and the Conference adopts the 
     provision.
       In subsection 1226(d), the Conference finds that the House 
     and Senate provisions striking 23 U.S.C. 126 concerning the 
     use of motor vehicle and fuel taxes for highway construction 
     projects are substantively equivalent and the Conference 
     adopts the House language.


                           nondiscrimination

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1703 amends section 324 of title 23, U.S.C. by 
     moving the provision on discrimination on the basis of sex to 
     section 140 as subsection (d). Under current law, both of 
     these sections address discrimination.
     Conference substitute
       The Conference does not adopt the Senate provision.


                   Wetland Restoration Pilot Program

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1503 authorizes the Secretary to establish a 
     national wetland restoration pilot program. This 
     discretionary pilot program shall fund restoration projects 
     to offset the degradation of wetlands resulting from highway 
     construction projects carried out before December 27, 1977. 
     The Secretary is required to submit a report on the results 
     of the program every three years. This provision provides 
     contract authority in the amount of $12 million for fiscal 
     year 1998; $13 million for fiscal year 1999; $14 million for 
     fiscal year 2000; $17 million for fiscal year 2001; $20 
     million for fiscal year 2002; and $24 million for fiscal year 
     2003 to carry out this program.
       This section is devoted to historic losses of wetlands 
     only. Funds provided in this program are not intended to 
     reward State departments of transportation for knowingly 
     degrading wetlands through highway construction. Therefore, 
     the funds provided in this section are not to be used to 
     mitigate wetlands losses from current and future highway 
     projects or from projects carried out after December 1977.
     Conference substitute
       The Conference does not adopt the Senate provision.

            Subtitle C--Program Streamlining and Flexibility

     Sec. 1301. Real Property Acquisition and Corridor Preservation

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1202 amends sections 108 and 323 of title 23, 
     United States Code, to expand the flexibility provided to 
     State and local governments to compete for land resources. It 
     provides for the advanced acquisition of real property not 
     only for highway projects, but for all transportation 
     improvements under title 23. This section removes restrictive 
     language and outdated programs, revises language, and adds 
     opportunities for States and local governments to utilize 
     early property acquisition when necessary, while retaining 
     maximum flexibility to leverage the use of Federal funds.
       The provision provides an alternative means of leveraging 
     Federal funds apportioned to each State by providing a credit 
     based on the value of publicly-owned lands incorporated 
     within a federally funded project. This provision is 
     consistent with the credits already permitted for donated 
     real property and services. The provisions added by this 
     section expand the choices available to State and local 
     governments in fashioning financial strategies to best serve 
     their transportation objectives.
     Conference substitute
       The Conference adopts the Senate provision with a 
     modification to clarify that costs of services are not 
     eligible as a credit for non-Federal share.

             Sec. 1302. Payments to States for Construction

     House bill
       Subsection 134(d) amends 23 U.S.C. 121 to remove a 
     restriction which applies the Federal/non-Federal matching 
     rate to each payment that a State receives. This amendment 
     will make the Federal-aid highway program more like other 
     Federal programs, including the Federal transit program, and 
     will give the State greater flexibility in managing their 
     funds.
     Senate amendment
       Section 1204 amends 23 U.S.C. 121 to remove a restriction 
     that applies the Federal/non-Federal matching share 
     requirement to each payment a State receives. The revised 
     section 121 makes the requirement applicable to total project 
     costs rather than to individual voucher payments. The 
     increased flexibility provided by these changes will result 
     in a simplified program that is easier for State departments 
     of transportation to administer. The changes recognize that 
     the important restriction is that the total project meets the 
     Federal share requirement. The changes also make the Federal-
     aid-highway program more compatible with other Federal 
     programs, particularly the Federal mass transportation 
     program; projects are often administered jointly by FHWA and 
     the Federal Transit Administration.
     Conference substitute
       The Conference adopts the House provision, making only 
     technical modifications and retaining the provision as a 
     separate section, as in the Senate bill.

      Sec. 1303. Proceeds from the Sale or Lease of Real Property

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 156 of title 23, United States Code, requires 
     States to change fair market value

[[Page H10501]]

     for the use of airspace acquired in connection with a 
     federally funded project. Section 1205 expands the 
     requirement in section 156 to apply to the net income 
     generated by a State's lease, sale, or other use of all real 
     property acquired with Federal financial assistance from the 
     highway account of the Highway Trust Fund. The revised 
     section 156 applies the same standard to all real property 
     interests acquired with Federal-aid highway funds. As in 
     current law, the Secretary may grant exceptions for social, 
     environmental, or economic purposes.
     Conference substitute
       The Conference adopts the Senate provision with the 
     inclusion of the following clarifying report language. The 
     purpose of the exception retained in this provision is to 
     give the States (with the Secretary's approval) the 
     flexibility to charge less than fair market value for lands 
     bought with Highway Trust Fund dollars if the lands, once 
     sold or leased, would be used for some purpose of public 
     benefit that would outweigh the general desire to receive 
     fair market value for the property, such as if the lands 
     would be used as parkland or as a recreation area.

               Sec. 1304. Engineering Cost Reimbursement

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1210 amends 23 U.S.C. 102(b) to provide an 
     exception to the requirement that a State commence 
     construction or acquisition of right-of-way on a project 
     within 10 years after using Federal funds for preliminary 
     engineering for such project. The exception requires the 
     State, before the expiration of the 10-year period, to 
     request a longer time period and for the Secretary to 
     determine that the request is reasonable.
     Conference substitute
       The Conference adopts the Senate provision, with a 
     modification requiring that the State commerce construction 
     or acquisition of right-of-way within 10 years or such longer 
     period as the State requests and the Secretary determines to 
     be reasonable.

               Sec. 1305. Project Approval and Oversight

     House bill
       Subsection 139(a) amends 23 U.S.C. 106 to require life 
     cycle costs analysis on each usable project segment on the 
     National Highway System and requires the analysis to conform 
     with Executive Order 12893 on infrastructure investment.
       Section 501 consolidates and codifies the current practices 
     used by the Secretary to approve and oversee Federal-aid 
     highway projects and further streamlines that process. This 
     section requires that for projects on the NHS (including the 
     Interstate system), the Secretary and each State will enter 
     into an agreement as to the appropriate level of Federal 
     oversight. The Secretary may not assume a greater degree of 
     responsibility than under current law. For all non-NHS 
     projects, the States will assume all of the Secretary's 
     current responsibilities for design, plans, specifications, 
     estimates, the awarding of contracts, and the inspection of 
     projects. For projects on the NHS but not on the Interstate 
     system, a State shall assume all of the Secretary's current 
     responsibilities for design, plans, specifications, 
     estimates, the awarding of contracts, and the inspection of 
     projects unless the State or the Secretary determines that 
     such assumption is not appropriate.
       Section 504 requires the preparation of a financial plan 
     for any highway or transit project costing over $1 billion 
     that is proposed to be funded with Federal funds, and 
     requires that the plan be based on detailed annual estimates 
     (including reasonable assumptions of future increases) of the 
     cost to complete the project.
     Senate amendment
       Subsection 1222(a) amends 23 U.S.C. 106, which addresses 
     Federal and State responsibilities for surface transportation 
     projects. This section permits the Secretary to discharge to 
     the State with their approval the Secretary's 
     responsibilities under title 23 for the design, plans, 
     specifications, estimates, contract awards, and inspection of 
     projects on the National Highway System. For non-NHS 
     projects, a State may request that the Secretary no longer 
     review and approve the design, plans, specifications, 
     estimates, contract awards, and inspection of projects under 
     title 23.
       Subsection 1222(a) also requires the Secretary to prepare a 
     financial plan for any projects with an estimated total cost 
     of $1 billion or more.
     Conference substitute
       In subsection 1305(a), the Conference adopts a substitute 
     project approval and oversight provision. The substitute 
     requires that the State shall assume the Secretary's 
     responsibilities under this title for design, plans, 
     specifications, estimates, contract awards and inspection of 
     projects that are not on the National Highway System unless 
     the State determines that such assumption is not appropriate. 
     In addition, the State may assume responsibility for projects 
     on the NHS but not on the Interstate system unless the State 
     or Secretary determines that such assumption is not 
     appropriate.
       In any case where States must meet surface quality 
     regulations set forth by the Federal Highway Administration, 
     they may look for leadership to a private Midwestern 
     engineering institute which has served as a State certifying 
     contractor for the past eleven years. The FHWA may work with 
     this institution in carrying out this National certification 
     program and use the existing expertise in the area.
       In subsection 1305(b), the Conference adopts the House 
     provision concerning financial plans, with a modification 
     codifying the provision at 23 U.S.C. 106(h).
       In subsection 1305(c) the Conference adopts the House life-
     cycle cost provision with modifications. This provision 
     eliminates the mandate that States conduct life-cycle 
     costing procedures on each usable project segment of $25 
     million or more on the National Highway System. Instead, 
     it provides that the Secretary shall develop a set of 
     procedures to be issued as recommendations to the States 
     for conducting analyses of the life-cycle costs for 
     projects on the National Highway System. In making a 
     recommendation, the Secretary shall consult with AASHTO, 
     and such recommendations shall be based on the principles 
     identified in Executive Order 12893.
       Life-cycle cost analysis is a process to reduce costs and 
     improve quality and performance. In order to achieve these 
     goals, the Secretary's recommendations shall suggest a 
     uniform analysis period and uniform discount rates as 
     established in OMB Circular A-94 for all Fedeal-aid National 
     Highway System projects. The recommendation shall incorporate 
     factors such as a documented, vigorous maintenance schedule, 
     user costs, and the life of the project. The States are 
     encouraged to use the recommendations to the maximum extent 
     possible on National Highway System projects.

                          Sec. 1306. Standards

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Subsection 1222(b) eliminates the requirement that the 
     Secretary issue Interstate maintenance guidelines and adds 
     that safety considerations of a project may be met by phase 
     construction.
     Conference substitute
       In section 1306, the Conference adopts the Senate provision 
     with a modification. The conference provision language 
     clarifies that the safety considerations are to be consistent 
     with an operative safety management system or a statewide 
     transportation improvement program approved by the Secretary.

                  Sec. 1307. Design-Build Contracting

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1224 provides authority, two years after the date 
     of enactment of this Act, for State transportation 
     departments to use the design-build approach for construction 
     of eligible title 23 project segments. Design-build is an 
     innovative method of highway contracting that is only allowed 
     on an experimental basis under current law. It differs from 
     traditional contracting in that it combines, rather than 
     separates, responsibility for the design and construction 
     phases of a highway project. This section allows States to 
     use their State design-build contracting procedures in 
     statute or procedures authorized under section 303M of the 
     Federal Property and Administrative Services Act of 1949.
       The benefits of the design-build approach include greater 
     accountability for quality and costs, less time spent 
     coordinating designer and builder activities, firmer 
     knowledge of project costs, and a reduced burden in 
     administering contracts. Design-build is particularly 
     advantageous for accelerating project delivery. For example, 
     a study of 11 design-build projects in Florida found that 
     this innovative contracting method produced significant 
     improvements in project performance as compared to non 
     design-build projects. The average design-build construction 
     time was 21.1 percent shorter than the average for non 
     design-build projects. In addition, actual design-build 
     procurement times were 54 percent less than the normal design 
     procurement time allocated for projects using traditional 
     contracting methods. The design-build projects also produced 
     a 4.7 percent reduction in after-bid changes to the contract.
       Despite the potential advantages of design-build, it may 
     not be an appropriate method for carrying out every highway 
     project. Therefore, this section provides minimum cost 
     requirements for potential design-build projects. To qualify 
     for the award of a design-build contract, the cost of each 
     usable segment of a highway project must be at least 
     $50,000,000. In the case of an Intelligent Transportation 
     Systems project, the total cost of the project must exceed 
     $10,000,000.
     Conference substitute
       In section 1307, the Conference adopts the Senate provision 
     with the following modifications. Subsection 1307(a) allows a 
     State to award a design-build contract for a project using 
     any procurement process permitted by applicable State and 
     local law. Subsection 1307(c) requires the Secretary to 
     consult with the American Association of State Highway and 
     Transportation Officials and affected industry 
     representatives before issuing regulations to carry out this 
     section. Subsection 1307(e) provides that the design-build 
     amendments made in this section shall take effect 3 years 
     after the date of enactment of this Act and provides that, 
     during the 3-year transition period, the Secretary may 
     approve design-build contracts to be awarded using any 
     procees permitted by applicable State and local law. 
     Subsection

[[Page H10502]]

     1307(f) requires the Secretary to submit a report to Congress 
     within 5 years after the date of enactment of this Act. The 
     report shall analyze the effectiveness of design-build 
     contracting procedures.

             Sec. 1308. Major Investment Study Integration

     House bill
       Section 503 requires the Secretary to issue new regulations 
     to eliminate the major investment study (MIS) requirement as 
     a separate requirement and integrate this requirement, which 
     is a requirement in the planning regulations, into the 
     environmental review process for transportation projects. The 
     two processes are currently not integrated, although many of 
     their requirements and purposes overlap and are similar.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference adopts the House provision, with a 
     modification to require that the new regulations promulgated 
     under this section integrate the MIS requirement as part of 
     the analyses required to be undertaken pursuant to the 
     planning provisions of title 23 and chapter 53 of title 49, 
     United States Code, and the National Environmental Policy Act 
     of 1969 for Federal-aid highway and transit projects. The 
     Conference provision also specifically limits the scope of 
     such regulations; they shall be no broader than the scope of 
     the current MIS requirement in 23 CFR 450.318.

                 Sec. 1309. Environmental Streamlining

     House bill
       Section 502 establishes a coordinated environmental review 
     process for highway construction projects so that whenever 
     practicable, all environmental reviews, analyses, opinions 
     and any permits, licenses, or approvals that must be issued 
     by a Federal agency are conducted concurrently and within 
     cooperatively established time periods. The time periods must 
     be consistent with those established by the Council on 
     Environmental Quality (CEQ) in implementing the National 
     Environmental Policy Act (NEPA). Agreed upon time periods may 
     be extended by the Secretary, if, upon good cause shown, the 
     Secretary and the Federal agency determine that an extension 
     is necessary as a result of new information that could not 
     reasonably have been anticipated when the time periods for 
     review were established. In the event that an agency fails to 
     complete its review or analysis within an agreed upon time 
     period, the Secretary may close the record.
       The House bill further directs the Secretary, in 
     consultation with CEQ, to establish a State environmental 
     review delegation pilot demonstration program to allow a 
     limited number of States to assume responsibility for 
     implementing NEPA for highway projects. The pilot program is 
     authorized for three years.
     Senate amendment
       Section 1225 requires the Secretary to develop an 
     integrated decisionmaking process for surface transportation 
     projects. Using the environmental review process under NEPA, 
     the section establishes a mechanism to coordinate the 
     permitting process for surface transportation projects, 
     encouraging consolidation of Federal, State, local and Tribal 
     decisionmaking to maximum extent practicable, and early 
     consideration of environmental impacts. The section further 
     encourages the use of collaborative, problem solving and 
     consensus building approaches to implement the integrated 
     process.
     Conference substitute
       The Conference adopts the House language with the following 
     three modifications. First, the provisions establishing a 
     pilot program to delegate responsibility for compliance with 
     the requirements of NEPA to up to eight States is deleted. 
     Second, the language directing agencies to provide due 
     consideration to the determination of the Secretary with 
     respect to the purpose and need of a highway project is 
     deleted. Third, the conference substitute clarifies that the 
     authority of the Secretary to close the record in the event 
     that another agency fails to meet an agreed-upon deadline for 
     completing its environmental review of a proposed project is 
     limited to the record with respect to the matter before the 
     Secretary.
       Both the House and Senate bills seek to address the same 
     concerns: the delays, unnecessary duplication of effort, and 
     added costs often associated with the current process for 
     reviewing and approving surface transportation projects. The 
     U.S. Department of Transportation has, through its 
     administrative initiatives, attempted to address some of 
     these problems. Legislation is appropriate, however, to 
     further improve the integration and coordination of decisions 
     relating to highway projects. Better and earlier coordination 
     among the agencies involved in the decisionmaking process for 
     highway projects should help reduce conflicts and their 
     associated delays and costs.
       The fundamental goals of the environmental streamlining 
     provisions are to establish an integrated review and 
     permitting process that identifies key decision points and 
     potential conflicts as early as possible; integrates the NEPA 
     process as early as possible; encourages full and early 
     participation by all relevant agencies that must review a 
     highway construction project or issue a permit, license, 
     approval or opinion relating to the project; and establishes 
     coordinated time schedules for agencies to act on a project.
       To accomplish these goals, the Conference substitute adopts 
     the House provision encouraging the Secretary to enter into 
     memoranda of agreement (MOAs) with the agencies responsible 
     for reviewing the environmental documents prepared under NEPA 
     or for conducting other environmental review, analyses, 
     opinions or issuing any license, permits or approvals 
     relating to a project. It is expected that Federal, State and 
     other agencies involved in reviewing and approving a project, 
     or components of a project, will use the MOA process to 
     establish cooperatively determined time periods to complete 
     their work and, more generally, to describe how, and the 
     extent to which, the various permitting requirements and 
     environmental reviews relating to the project will be 
     integrated. MOAs may include a variety of interagency 
     agreements. In order to avoid subsequent conflicts and delays 
     on a project, agencies are encouraged to solicit early public 
     input in the development of an MOA.
       The Conference substitute retains the House provisions 
     regarding the joint development of time periods for each 
     agency involved in the review and approval of a project to 
     complete its review. The language further provides that any 
     environmental review, including those required under NEPA, 
     conducted with respect to a project shall generally be done 
     concurrently unless conducting a concurrent review would 
     result in a significant adverse effect on the environment, 
     would substantively alter Federal law, or would not be 
     possible without information developed during the review 
     process. This last exception is intended to ensure that 
     agencies are not put in the position of having to complete 
     environmental reviews before they have sufficient information 
     to conduct a meaningful review.
       The provisions relating to the Secretary's authority to 
     close the record have been modified to clarify the extent of 
     the Secretary's authority to issue a record of decision for a 
     project in the event that another agency fails to meet the 
     agreed upon deadline for completing its review of any 
     environmental documents required for the project under NEPA. 
     The Secretary's authority to close the record authority does 
     not extend to reviews, analyses, opinions or decisions 
     conducted by another agency on any permit, license or 
     approval issued by that agency. For example, if a project 
     requires the Corps of Engineers to issue a permit under 
     section 404 of the Clean Water Act, the Secretary may not 
     restrict the Corps' review with respect to its decision to 
     issue the 404 permit, even if the Corps fails to meet a 
     deadline set forth in a MOA with the Secretary. Therefore, 
     the conference substitute includes language affirming that 
     the Secretary's authority to close the record is limited to 
     the record on the matter pending before the Secretary. This 
     still allows the Secretary to issue a record of decision on a 
     highway project, even if other agencies have not completed 
     their review of the environmental documents required under 
     NEPA for the project.
       The conference substitute allows the additional costs 
     associated with Federal agencies complying with this 
     streamlined process to be considered eligible project 
     expenses under the Federal-aid highway program. Such costs 
     may only be for the additional amount the Secretary 
     determines are necessary to Federal agencies to meet the time 
     periods for environmental review where such time periods are 
     less than the customary time for such review.
       For purposes of this section, the term Federal agency 
     includes any Federal agency or State agency carrying out 
     affected responsibilities by operation of Federal law.
       These provisions make a number of significant procedural 
     changes and improvements to the process for reviewing and 
     approving highway projects. It is expected that the Secretary 
     will publish regulations, after public notice and comment, to 
     implement these new procedures.

    Sec. 1310. Uniform Transferability of Federal-Aid Highway Funds

     House bill
       Section 505 creates a new uniform transferability of 
     Federal-aid highway funds and codifies this provision at 23 
     U.S.C. 110. (This creates a second section 110 in title 23, 
     because section 1105 of this Act codified the revenue aligned 
     budget authority provision at 23 U.S.C. 110.)
       Subsection 505(a) applies to any highway program or set-
     aside within a program which does not allow at least 50 
     percent of the apportioned or set-aside funds to be 
     transferred to another category. The provision allows any 
     State to transfer up to 50 percent of any funds apportioned 
     to it, as well as any funds within that apportionment that 
     have special requirements or constitute a set aside, to any 
     other category of funds.
       Subsection 505(b) sets rules for the transferability of 
     certain funds set aside within the Surface Transportation 
     Program. STP funds set aside at the 1991 funding levels for 
     the hazard elimination and rail-highway grade crossing 
     programs, metropolitan planning funds, and the sub-State 
     suballocation may not be transferred. For funds set aside for 
     transportation enhancements, up to 50 percent of the 
     difference between the amount set aside for enhancements for 
     the fiscal year and the amount of the sub-State suballocation 
     in fiscal year 1996 can be transferred. For funds apportioned 
     for the CMAQ program, a State may transfer up to 50 percent 
     of the difference between its CMAQ funding for the fiscal 
     year and its fiscal year 1997 CMAQ apportionment.

[[Page H10503]]

     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference adopts the House provision, with several 
     modifications. The conference substitute provides that the 
     maximum amount a State may transfer of its STP enhancements 
     and safety set-aside flexible funds is 25 percent of the 
     difference between the increase in each such set-aside over 
     the fiscal year 1997 amount of each such set-aside. This 
     modification (1) reduces the maximum percent a State may 
     transfer from 50 to 25, (2) permits flexible safety set-aside 
     funds to be transferred, but retains the prohibition against 
     transferring hazard elimination and rail-road highway grade 
     crossing funds, and (3) changes the comparison year from 
     fiscal year 1996 to fiscal year 1997. The Conference 
     substitute also changes the comparison year for determining 
     CMAQ transferability; under this provision, a State may 
     transfer 50 percent of the difference between the amount of 
     its CMAQ apportionment for the fiscal year and the amount 
     such apportionment would be had the CMAQ program been funded 
     at $1.35 billion.

     Sec. 1311. Discretionary Grant Selection Criteria and Process

     House bill
       Section 506 requires that the Secretary establish and 
     publish the criteria used for the awarding of discretionary 
     grants, that such criteria conform to Executive Order 12893 
     (relating to infrastructure investment) to the extent 
     practicable, and that preference be given to donor States 
     when considering equal applications for grants. It also 
     requires that the Secretary submit to Congress 14 days before 
     awarding a discretionary grant an explanation of how the 
     selected projects conform to the published guidelines.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference adopts the House provision, with several 
     modifications. First, the Conference provision does not 
     include the requirement that preference be given to donor 
     States. Second, rather than requiring explanations to be 
     submitted 14 days before awards of discretionary grants, the 
     Conference provision requires the Secretary to submit to 
     Congress at least quarterly a list of the projects selected 
     under the discretionary grant projects for programs listed in 
     subsection (c) of this section, along with an explanation of 
     how such projects were selected using the criteria required 
     under this section. Third, the Conference provision modifies 
     the list of the programs covered by this provision.


                           design flexibility

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1236 clarifies 23 U.S.C. 109 regarding the 
     Secretary's responsibilities regarding planned future traffic 
     needs and the Secretary's responsibilities in reviewing State 
     plans for proposed highway projects. This modification 
     eliminates the requirement that the Secretary ensure that a 
     State plan for a highway project must accompany future 
     traffic demands. As revised, subsection 109(a) only requires 
     that the Secretary ensure that future traffic needs were 
     considered.
     Conference substitute
       The Conference does not adopt the Senate provision.


                          midcourse correction

     House bill
       Section 508 directs the Secretary to withhold certain funds 
     for fiscal 2001 until August 1, 2001 unless Congress enacts a 
     law making midcourse corrections to the highway and transit 
     programs. At a minimum, the midcourse correction must include 
     a funding distribution for the high cost interstate program, 
     approve a system of performance bonuses, approve an 
     Appalachian development highway system program, and approve 
     projects within the transit capital program.
     Senate amendment
       The Senate bill contains no comparable provision.
     Conference substitute
       The Conference does not adopt the House provision.

                           Subtitle D--Safety

                 Sec. 1401. Hazard Elimination Program

     House bill
       Section 138 amends 23 U.S.C. 152 to require that hazards to 
     bicyclists be included in the hazardous locations inventory. 
     This section also directs States to carry out hazard 
     elimination projects so as to minimize any negative impact on 
     safety and access for bicyclists and pedestrians. This 
     section also authorizes the Secretary to approve any safety 
     improvement project described in 23 U.S.C. 152(a) and makes 
     conforming amendments to subsections 152(f) and (g).
     Senate amendment
       Section 1404 expands the eligibility of the current hazard 
     elimination program to include a full range of safety 
     improvements for bicyclists and pedestrians, including 
     multimodal and community safety programs; spot improvement 
     programs for rapid-response of low costs hazards such as 
     potholes, roadway and trail debris, and unsafe drainage gates 
     are eligible for funding under this program. This section 
     also makes traffic calming measures eligible for hazard 
     elimination funds. The prohibition on States using hazard 
     elimination funds to correct hazards on routes on the 
     Interstate system is eliminated. This section also revises 
     the reference to ``Highway safety improvement project'' in 
     subsection 152(b) to read ``safety improvement project'' to 
     reflect the multimodal focus of the hazard elimination 
     program.
     Conference substitute
       The Conference adopts the Senate provision with 
     modifications. It clarifies that to be eligible under this 
     section, a project must be related to a public surface 
     transportation facility. The Conference substitute does not 
     adopt the Senate language making public transportation 
     vehicles and any public transportation facility that the 
     Secretary determines to be appropriate eligible for hazard 
     elimination funds. The Conference provision also makes 
     technical and conforming amendments to 23 U.S.C. 152. In 
     carrying out this section, States should minimize any 
     negative impact on safety and access for bicyclists and 
     pedestrians in accordance with 23 U.S.C. 217.

                Sec. 1402. Roadside Safety Technologies

     House bill
       Subsection 126(a) requires the issuance of guidance to the 
     States on the proper uses of various types of crash cushions. 
     The States shall use such guidance to evaluate the use of 
     such crash cushions and whether the cushions or other safety 
     appurtenances should be installed at specific highway 
     locations.
       Subsection 126(b) requires the Secretary to (1) study the 
     means of improving safety and road capacity through the use 
     of movable road barrier (positive separation) technologies, 
     (2) report to Congress within one year after the date of 
     enactment of this Act on the results of such study, and (3) 
     provide the report to States for their use on appropriate 
     projects on Federal-aid highways.
     Senate amendment
       Section 3107 requires the Secretary to issue guidance 
     regarding the benefits and safety performance of redirective 
     and nonredirective crash cushions. States are required to use 
     this guidance in evaluating the safety and cost-effectiveness 
     of using different crash cushion designs or other safety 
     appurtenances.
     Conference substitute
       The Conference adopts the House provision with a 
     modification to extend the report deadline to 18 months after 
     enactment, rather than one year.

        Sec. 1403. Safety Incentive Grants for Use of Seat Belts

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1406 establishes a new program to encourage States 
     to promote and increase seat belt usage in passenger motor 
     vehicles. This new program provides incentive grants to 
     States that either obtain a State seat belt use rate above 
     the national average, or increase the State seat belt usage. 
     The  Secretary shall determine annually: (1) those States 
     that achieved a usage rate higher than the national 
     average, and the amount of Federal government budget 
     savings from Federal medical insurance programs associated 
     with the higher seat belt usage rate; and (2) those States 
     that realized an increase in the seat belt rate compared 
     with the State's base rate, and the resulting Federal 
     government budget savings from Federal medical insurance 
     programs.
       Under this section, the Secretary is required to allocate 
     to each State in fiscal years 1999 through 2003, the amount 
     of Federal medical savings that resulted from either 
     increases in seat belt usage over the national average or 
     increases over the State's base rate. States may use such 
     funds for any project eligible for assistance under title 23, 
     United States Code. This section provides $60 million for 
     fiscal year 1998; $70 million for fiscal year 1999; $80 
     million for fiscal year 2000; $90 million for fiscal year 
     2001; and $100 million for fiscal years 2002 and 2003.
     Conference substitute
       The Conference adopts the Senate provision, with 
     modifications increasing authorizations for the programs and 
     providing that, for fiscal year 1999, any unallocated funds 
     under this section shall be apportioned to the States as STP 
     funds, and for fiscal years 2000 through 2003, the Secretary 
     shall use any unallocated funds authorized under this section 
     to make allocations to States that have developed plans to 
     carry out innovative projects to promote increased seat belt 
     use rates.

Sec. 1404. Safety Incentives to Prevent Operation of Motor Vehicles by 
                          Intoxicated Persons

     House bill
       Section 209 directs the Comptroller General to conduct a 
     study to evaluate the effectiveness of State 0.08 and 0.02 
     blood alcohol content (BAC) laws in reducing the number and 
     severity of alcohol-related crashes. This section requires 
     the Comptroller General to report to the Congress within two 
     years with the results of the BAC study.

[[Page H10504]]

     Senate amendment
       Section 1408 directs the Secretary to withhold 5 percent of 
     a State's Interstate Maintenance, National Highway System, 
     and Surface Transportation Program apportionments in fiscal 
     year 2002 and 10 percent of such apportionments in fiscal 
     year 2003 and thereafter if the State has failed to enact and 
     enforce a law providing that an individual with an alcohol 
     concentration of 0.08 percent or greater while operating a 
     motor vehicle has committed the offense of driving while 
     intoxicated. The section also provides that if a State has 
     funds withheld from apportionment under this section on or 
     before September 30, 2003, and then comes into compliance 
     with this section within 3 years, the Secretary shall 
     apportion to the States the withheld funds. If a State fails 
     to come into compliance within the 3-year period, the 
     withheld funds shall lapse.
     Conference substitute
       In section 1404, the Conference adopts a substitute 
     provision authorizing a total of $500 million for incentive 
     grants. The Conference substitute directs the Secretary to 
     apportion the funds authorized to carry out this section to 
     any State that has enacted and is enforcing a law providing 
     that an individual with an alcohol concentration of 0.08 
     percent or greater while operating a motor vehicle shall be 
     deemed to have committed a per se offense of driving while 
     intoxicated. States may obligate funds apportioned under this 
     section for any project eligible for assistance under title 
     23, United States Code, and the Federal share of such project 
     shall be 100 percent.
       The Conference adopts the House provision in title II of 
     the Act.

                     Sec. 1405. Open Container Laws

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1409 directs the Secretary to withhold 5 percent of 
     a State's Interstate Maintenance, National Highway System, 
     and Surface Transportation Program apportionments in fiscal 
     year 2002 and 10 percent of such apportionments in fiscal 
     year 2003 and thereafter if the State fails to have in effect 
     a law prohibiting any open alcoholic beverage container or 
     the consumption of any alcoholic beverage in the passenger 
     area of a motor vehicle located on a public highway. The 
     section also provides that if a State has funds withheld from 
     apportionment under this section on or before September 30, 
     2003, and then comes into compliance with this section within 
     3 years, the Secretary shall apportion to the States the 
     withheld funds. If a State fails to come into compliance 
     within the 3-year period, the withheld funds shall lapse.
     Conference substitute
       The Conference adopts the Senate provision, with a 
     modification providing for the transfer, rather than the 
     withholding, of a State's IM, NHS, and/or STP funds. For 
     fiscal years 2001 and 2002, States that have failed to enact 
     or enforce an open container law shall have 1\1/2\ percent of 
     their IM, NHS, and/or STP funds transferred to their Section 
     402 program to fund alcohol-impaired driving countermeasures 
     and law enforcement activities to prevent drunk driving. In 
     addition, the State may elect to use all or a portion of the 
     transferred funds for the State's hazard elimination program. 
     For fiscal year 2003 and thereafter, States that have failed 
     to enact or enforce an open container law shall have 3 
     percent of their IM, NHS and/or STP funds transferred to 
     their Section 402 program to fund alcohol-impaired driving 
     countermeasures or law enforcement activities to prevent 
     drunk driving, with the State able to use all or a portion of 
     the transferred funds for the State's hazard elimination 
     program.

  Sec. 1406. Minimum Penalties for Repeat Offenders for Driving While 
               Intoxicated or Driving Under the Influence

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1405 establishes a new program to address the 
     growing problem of repeat, hard core drunk drivers with high 
     alcohol concentrations by requiring States to enact repeat 
     intoxicated driver laws or else have a percentage of their 
     highway construction funds transferred to their Section 402 
     highway safety program. The section requires States to enact 
     and enforce penalties for drunk drivers who have an alcohol 
     concentration of .15 or greater, and who have been convicted 
     of a second or subsequent drunk driving offense within 5 
     years. Minimum penalties shall include a license suspension 
     of not less than 1 year, an assessment of the individual's 
     abuse of alcohol and recommended treatment regimes as 
     appropriate, and either an assignment of 30 days community 
     service or 5 days imprisonment.
       For fiscal years 2001 and 2002, States failing to enact or 
     enforce the described minimum penalties for repeat drunk 
     drivers with high alcohol concentrations shall have 1\1/2\ 
     percent of their INHS and/or STP funds transferred to their 
     Section 402 program to fund alcohol-impaired driving 
     countermeasures and law enforcement activities to prevent 
     drunk driving. For fiscal year 2003 and thereafter, States 
     that have failed to enact or enforce a repeat intoxicated 
     driver law will have 3 percent of their INHS and STP funds 
     transferred to their Section 402 program.
     Conference substitute
       The Conference adopts the Senate provision with a 
     modification to provide that States may use all or a part of 
     the transferred funds for the State's hazard elimination 
     program.


                       railway-highway crossings

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1403 amends 23 U.S.C. 130 to expand the eligibility 
     of railway-highway funds to include trespassing 
     countermeasures in the vicinity of the crossing, safety 
     education, enforcement of traffic laws and publicly sponsored 
     projects at privately owned railway-highway crossings. States 
     are required to report to the Department on completed 
     crossing projects funded under this subsection for inclusion 
     in the DOT/American Association of Railroads National Grade 
     Crossing Inventory.
       This section eliminates the requirement that half the funds 
     authorized under section 130 be available for installation of 
     protective devices at railway-highway crossings. These 
     activities, however, remain eligible for funding under this 
     section.
     Conference substitute
       The Conference does not adopt the Senate provision.


                     flexibility of safety programs

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1233 gives States additional flexibility with 
     respect to safety set-aside requirements. This provision 
     requires each State to set aside 2 percent of its surface 
     transportation program apportionment for railway-highway 
     crossings; 2 percent of its STP funds for hazard elimination 
     activities; and 6 percent of its STP funds for railway-
     highway crossings or hazard elimination activities.
       Additional discretion is given to each State to transfer up 
     to 100 percent of its 6 percent STP safety set-aside funds to 
     its section 402 safety program or to its motor carrier safety 
     program allocation. The requirement that half the funds 
     authorized and expended under section 130 be available for 
     installation of protective devices at railway-highway 
     crossings is eliminated. The revised section, however, 
     retains this use as an eligible activity.
     Conference substitute
       The Conference does not adopt the Senate provision.

                          Subtitle E--Finance

        Chapter 1--Transportation Infrastructure and Innovation

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Subtitle C, Chapter 2, establishes a Federal credit 
     assistance program for major surface transportation projects 
     under the Transportation Infrastructure Finance and 
     Innovation Act of 1998 (TIFIA).
     Conference substitute
       In sections 1501 through 1504, the Conference adopts the 
     Senate provision, with certain modifications. The TIFIA 
     program is designed to assist major surface transportation 
     projects with their own revenue streams, which can attract 
     substantial private capital with a limited Federal 
     investment. This program offers the sponsors of large 
     transportation projects a new tool to leverage limited 
     Federal resources, stimulate additional investment in our 
     Nation's infrastructure, and encourage greater private 
     sector participation in meeting our transportation needs.
       Eligible projects for TIFIA assistance include any projects 
     eligible under title 23 (highway and transit capital 
     projects) as well as international bridges and tunnels, 
     inter-city passenger bus and rail facilities and vehicles 
     (including Amtrak and magnetic levitation systems), and 
     publicly-owned intermodal freight facilities. Examples of the 
     types of projects which may benefit from this program are the 
     Woodrow Wilson Bridge, the Farley/Pennsylvania Station 
     project in New York City and the State of Florida's proposed 
     high-speed rail project between Miami, Orlando and Tampa. 
     Project sponsors may be governmental units, private entities, 
     or public-private partnerships. The Conferees wish to 
     reiterate language concerning the Florida high-speed rail 
     project in the Senate committee report section on TIFIA. This 
     project represents an effort by the State of Florida to bring 
     a new technology to the United States by using an innovative 
     public-private partnership that does not rely on Federal 
     grant support. The State of Florida's request for a Federal 
     loan equal to 1/3 of project costs should receive favorable 
     consideration from the Department of Transportation, provided 
     it meets the program criteria.
       To be eligible for credit assistance, a project must meet 
     certain threshold criteria. It must cost at least $100 
     million or 50 percent of a State's annual apportionment of 
     Federal-aid funds, whichever is less. (For intelligent 
     transportation system projects, the minimum cost is $30 
     million, due to the substantial capacity enhancements 
     attainable

[[Page H10505]]

     with but a limited investment.) The project also must have 
     the potential to be self-supporting from user charges or 
     other non-Federal dedicated funding sources, be on a State's 
     transportation plan and, at the time of funding, be on a 
     fiscally-constrained State transportation improvement 
     program. An application for credit assistance may be 
     submitted by a State or local government or other entity. The 
     Secretary will select among potential candidates based on 
     various criteria, including the project's regional or 
     national significance, its potential economic benefits, its 
     credit-worthiness, the degree of private sector 
     participation, and other factors.
       Forms of assistance that can be provided under this program 
     consist of direct loans, loan guarantees, and lines of 
     credit. In all cases the Federal role will be that of a 
     minority investor, with Federal participation limited to not 
     more than 33 percent of total project costs. The Secretary is 
     authorized to enter into agreements with project sponsors of 
     containing terms and conditions designed to assist the 
     projects in leveraging additional funds, while ensuring that 
     the program operates in a fiscally-prudent manner. The State 
     in which a project is located may identify a State or local 
     government entity to assist the Secretary in servicing the 
     Federal credit instrument.
       The Secretary may provide credit assistance to demonstrate 
     to the capital markets the viability of making transportation 
     infrastructure investments where returns depend on residual 
     project cash flows after serving senior municipal revenue 
     bonds or other capital markets debt. An objective of the 
     program is to help the financial markets develop the 
     capability ultimately to supplant the role of the Federal 
     government in helping finance the costs of large projects of 
     national significance. That is why loan guarantees are 
     limited to major institutional lenders, such as defined 
     benefit pension funds, which may be potential providers in 
     the future of supplemental and subordinate capital for 
     projects. The Conference would like the Secretary to 
     encourage Federal borrowers to prepay their direct loans or 
     guaranteed loans as soon as practicable from excess revenues 
     or the proceeds of municipal or other capital market debt 
     obligations. The Secretary also may sell off direct loans to 
     third parties or into the capital markets, if such 
     transactions can be arranged upon favorable terms.
       The Conference recognizes that the Congress enacted the 
     Deficit Reduction Act of 1984 provision prohibiting the 
     combination of Federal guarantees with tax-exempt debt, 
     because of concerns that such a double-subsidy could result 
     in the creation of an ``AAA'' rated security superior to U.S. 
     Treasury obligations. Accordingly, any project loan backed by 
     a loan guarantee as provided in TIFIA must be issued on a 
     taxable basis.
       The Conference wants to ensure that projects receiving 
     TIFIA assistance are financially sound. Each project, at the 
     time of its application for assistance, is required to 
     furnish a preliminary rating opinion letter from one of the 
     bond rating agencies identified by the Securities and 
     Exchange Commission as a ``Nationally Recognized Statistical 
     Rating Organization,'' indicating that the project's senior 
     debt obligations have the potential to achieve an investment-
     grade bond rating. The Secretary shall consult with the 
     Office of Management and Budget, each rating agency providing 
     such an opinion letter, and any other financial experts the 
     Secretary deems necessary, in order to determine the credit 
     instrument's appropriate subsidy cost (capital reserve) 
     pursuant to the Federal Credit Reform Act of 1990. Until such 
     time as a formal investment-grade rating is assigned, the 
     Secretary shall not extend credit in an amount exceeding the 
     estimated subsidy cost. The Conference believes that 
     analytical techniques that are widely-accepted by the capital 
     markets, such as those used by the rating agencies to 
     evaluate the financial stability of municipal bond insurance 
     companies, should be drawn upon to estimate the appropriate 
     subsidy cost.
       TIFIA expressly requires that projects adhere to Title VI 
     of the Civil Rights Act, the National Environmental Policy 
     Act, and the Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act. The Conference also recognizes that 
     highway and transit capital projects assisted under TIFIA 
     will retain adequate protections for labor in terms of 
     prevailing wages, as required under title 23 provisions.
       The bill provides $530 million of contract authority, 
     funded from the Highway Trust Fund, to fund the budgetary or 
     subsidy costs of the Federal credit instruments between 
     fiscal years 1999-2003: $80 million in fiscal year 1999; $90 
     million in fiscal year 2000; $110 million in fiscal year 
     2001; $120 million in fiscal year 2002; and $130 million in 
     fiscal year 2003. (As with other Federal credit programs, the 
     non-budgetary or financing costs of the Federal credit 
     instruments will be funded from the General Fund.) The bill 
     caps the nominal amount of credit instruments supported by 
     this contract authority at $1.2 billion for each of fiscal 
     years 1998 and 1999; $1.8 billion for fiscal years 2000 and 
     2001; and $2.3 billion for each of fiscal years 2002 and 
     2003.
       The Conferees are aware that present Federal income tax law 
     prohibits the use of direct or indirect Federal guarantees in 
     combination with tax-exempt debt (section 149(b)) of the 
     Internal Revenue Code of 1986. The TIFIA provisions of the 
     conference agreement do not override or otherwise modify this 
     provision of the Code.
       The Conference finds that developing, implementing, and 
     evaluating financial assistance programs such as TIFIA is a 
     critical mission of the Department of Transportation. To 
     ensure the financial and programmatic success of TIFIA, the 
     conference strongly encourages the Secretary to establish an 
     organizational structure within the Department in which 
     financial assistance activities and programs can be closely 
     coordinated and monitored.
       In order to evaluate the effectiveness of this program, the 
     Secretary is required to submit a report to Congress within 
     four years of the date of enactment of this bill. The report 
     should summarize the program's financial performance to date 
     and recommend whether the objectives of the program would be 
     best met by continuing the program under the authority of the 
     Secretary, establishing a Government corporation or 
     Government-sponsored enterprise to administer the program, 
     or by relying upon the capital markets to fund projects of 
     regional and national significance without Federal 
     participation.

           Chapter 2--State Infrastructure Bank Pilot Program

           Sec. 1511. State Infrastructure Bank Pilot Program

     House bill
       The House bill contains no comparable provision.
     Senate amendment
       Section 1301 codifies the State Infrastructure Bank (SIB) 
     Pilot Program authorized in the NHS Designation Act of 1995. 
     This section includes modifications to increase the 
     flexibility of the SIB program. The current 10-State limit on 
     the number of participants in the SIB program is eliminated, 
     thus enabling any State to establish a State Infrastructure 
     Bank. The percentage limitation regarding funds a State can 
     transfer to use in State infrastructure banks is eliminated. 
     The 10-State limit unnecessarily restricted States from 
     pursuing this financial mechanism and the percentage 
     limitation unnecessarily limits the States' use of this 
     mechanism. The need to maintain separate highway and transit 
     accounts also imposed an accounting burden on States that was 
     inconsistent with financial flexibility desired in a 
     financing entity such as a State Infrastructure Bank and was 
     therefore eliminated.
     Conference substitute
       In section 1511, the Conference adopts a substitute 
     provision, retaining most of the Senate provision, but with 
     some significant modifications. First, the Conference adopts 
     a four-State pilot program. Rather than permitting every 
     State to establish a SIB under this section, the Conference 
     provision states that the participating States under this 
     section are California, Florida, Missouri, and Rhode Island. 
     Second, the Conference provision modifies the Senate language 
     by expressly providing, in paragraph 1511(i)(2), that the 
     requirements of titles 23 and 49, United States Code, shall 
     apply to repayments from non-Federal sources to a SIB from 
     projects assisted by the SIB, and that such repayments shall 
     be considered to the Federal funds.

                   Subtitle F--High Priority Projects

                   Sec. 1601. High Priority Projects

     House bill
       Subsection 127(b) authorizes the high priority projects 
     program as subsection (j) of section 104 of title 23. Funds 
     for this program are exempt from the obligation limitation 
     imposed on the Federal-aid highway program. Subsection 
     127(b)(2) authorizes a State in carrying out a project with 
     Federal funds to divide or segment the project provided that 
     the division or segmentation complies with the requirements 
     of the National Environmental Policy Act of 1969.
     Senate amendment
       The Senate amendment contains no comparable provision.
     Conference substitute
       The Conference adopts the House provision with 
     modifications. Subsection 1601(a) establishes the program of 
     high priority projects in section 117 of title 23. The 
     provision is very clear that it is establishing a program of 
     projects, not a series of individual programs. In fact, 23 
     U.S.C. 117(a) provides that any unallocated funds are 
     available to the Secretary. Although this program is now 
     subject to an overall obligation limitation, it is the intent 
     of the Conference that this program functionally operate, to 
     the extent possible, as if this program were exempt from the 
     obligation limitation.
       In subsection (h) of section 117, it provides that 
     ``[f]unds allocated to a State in accordance with this 
     section shall be treated as amounts in addition to amounts a 
     State is apportioned under sections 104, 105, and 144 for 
     programmatic purposes.'' (emphasis added) The aim of this 
     provision is to ensure that high priority project funding is 
     treated as additive to the National Highway System, 
     Interstate maintenance, surface transportation program, 
     congestion mitigation and air quality improvement, bridge, 
     and minimum guarantee funds that the State would otherwise 
     receive. In fact, this provision was specifically added to 
     give guidance to states with internal formulas for the 
     distribution of federal-aid funds.
       In addition, section 1601 provides, in new 23 U.S.C. 
     117(g), that ``[o]bligation authority attributable to funds 
     made available to carry out this section shall only be 
     available for

[[Page H10506]]

     the purposes of this section and shall remain available until 
     obligated . . . .'' This means that the obligation authority 
     provided for high priority projects is reserved solely for 
     such project funds and cannot be used for any other Federal-
     aid highway program or project. Further, section 1102 of TEA 
     21, which directs the distribution of obligation authority 
     for all Federal-aid highway programs, provides in subsection 
     1102(g) that obligation authority distributed for a fiscal 
     year for high priority projects ``shall be in addition to the 
     amount of any limitation imposed on obligations for Federal-
     aid highway and highway safety construction programs for 
     future fiscal years.'' The treatment of obligation authority 
     for high priority projects under these two provisions further 
     articulates the intent of Congress that high priority project 
     funds and obligation authority shall be separate from and in 
     addition to a State's regular Federal-aid highway 
     apportionments.
       Furthermore, including high priority projects in the 
     minimum guarantee calculation serves the separate purpose of 
     ensuring that the distribution of Federal-aid highway funds 
     between the States is as equitable as possible. It does not 
     mean that each State's high priority projects were funded 
     from what would have been the State's regular formula 
     apportionments, and therefore provides no support for the 
     position that project funds should be offset from a 
     district's allocation of Federal-aid highway formula funds. 
     This interpretation is contrary to the express language of 
     section 1601, as cited above.
       Subsection 1601(b) clarifies that by listing high priority 
     projects in section 1602 of this Act and similar projects in 
     previous legislation, Congress is establishing the limits of 
     the projects for purposes of eligibility for associated 
     Federal-aid highway funding. The listing or identification of 
     a project is not intended to define the scope of the project 
     for purposes of complying with all Federal requirements, 
     including those of the National Environmental Policy Act 
     (NEPA). As the associated Federal-aid highway funding for 
     these projects typically is not sufficient to finance the 
     Federal share of all improvements within the project limits, 
     Congress recognizes that a State needs the flexibility to 
     advance logical segments of the overall project. Any segment 
     of a project must still have to connect logical termini, have 
     independent utility, and not restrict consideration of 
     alternatives for other reasonably foreseeable transportation 
     improvements. This provision does not waive safety or 
     contracting requirements for the underlying segment.
       In the case of the South Lawrence Trafficway in Kansas, the 
     State may advance the segment between U.S. 59 and Kansas 
     Route 10 as a non-Federally funded project without triggering 
     NEPA.
       Subsection 1601(c) makes conforming amendments to the table 
     of contents for title 23.

                   Sec. 1602. High Priority Projects

     House bill
       Subsection 127(c) establishes the high priority projects 
     for 1998 through 2003.
     Senate amendment
       The Senate amendment contains no comparable provision.
     Conference substitute
       Section 1602 establishes the high priority projects for 
     1998 through 2003.

                        Sec. 1603. Special Rule

     House bill
       Contains no comparable provision.
     Senate amendment
       The Senate amendment contains no comparable provision.
     Conference substitute
       Section 1603 provides how projects are included in certain 
     calculations.

                    TITLE V--TRANSPORTATION RESEARCH

                          Subtitle A--Funding


             Section 5001. Authorization of appropriations

     Senate bill
       Section 2201 of the Senate bill provides contract authority 
     for fiscal years 1998 through 2003 to carry out the research 
     and technology programs, the international highway 
     transportation outreach program, the infrastructure 
     investment needs report, and the study of the future 
     strategic highway program.
     House bill
       Subparagraphs 127(a)(3)(F),(G), and (H) authorize funding 
     for discretionary highway research programs; transportation 
     education, professional training, and technology deployment; 
     and the transportation technology innovation and 
     demonstration program for fiscal years 1998 through 2003.
       Section 625 of the House bill allocates the funds made 
     available under subparagraph 127(a)(3)(G) of the bill for the 
     National Highway Institute, the local technical assistance 
     program, the Eisenhower Fellowship Program, the national 
     technology deployment initiative program, and university 
     transportation centers.
     Conference substitute
       Subsection 5001(a) and (b) of the Conference substitute 
     provide contract authority for fiscal years 1998 through 2003 
     for the following research programs: surface transportation 
     research under 23 U.S.C. 502, 506, 507, and 508, and section 
     5112 of this Act; the technology deployment program; training 
     and education; the Bureau of Transportation Statistics; and 
     university transportation research.
       Subsection 5001(c) suballocates certain research funds for 
     specific projects and programs, such as long term pavement 
     performance, innovative bridge research and construction, the 
     National Highway Institute, and commercial vehicle ITS 
     infrastructure.
       Subsection 5001(d) authorizes the Secretary to transfer up 
     to 10 percent of the funds allocated within each paragraph of 
     subsection (c) for any other project or program within that 
     paragraph.


                    Section 5002. Obligation ceiling

     Senate bill
       Subsection 2201(c) of the Senate bill establishes a 
     limitation on obligations for the research and technology 
     program, the international highway transportation outreach 
     program, the infrastructure investment needs report, and the 
     study of the future strategic highway program.
     House bill
       Subsection 103(e) of the House bill provides that the 
     general obligation limitation for Federal-aid highway 
     programs established in subsection 103(a) applies to 
     transportation research programs carried out under chapter 3 
     of title 23, United States Code, and title VI of the House 
     bill.
     Conference substitute
       Section 5002 of the Conference substitute establishes, for 
     each of fiscal years 1998 through 2003, an annual limitation 
     on obligations of amounts made available under subsection 
     5001(a) for research programs.


                          section 5003. Notice

     Senate bill
       The Senate bill contains no similar provision.
     House bill
       Whenever funds authorized under this title or amendments 
     thereto are subject to a reprogramming notice the House and 
     Senate Committees on Appropriations, Section 604 requires 
     concurrent notice to the Committees on Transportation and 
     Infrastructure and on Science of the House of Representatives 
     and to the Committees on Environment and Public Works and on 
     Commerce, Science, and Transportation of the Senate. The 
     section also requires the Secretary to provide notice to 
     these committees of any major reorganization of programs, 
     projects, or activities of the Department for which funds are 
     authorized by this Title at least 15 days prior to the 
     reorganization's effective date.
     Conference substitute
       The Conference adopts the House provision with a 
     modification to strike reference to the Senate Committee on 
     Commerce, Science, and Transportation.

                  Subtitle B--Research and Technology


             section 5101. Research and technology program

     Senate bill
       Section 2005 amends the table of chapters in title 23 by 
     adding a new chapter, ``Chapter 5--Research and Technology,'' 
     and provides definitions for their terms ``safety'' and 
     ``federal laboratory''.
     House bill
       The House bill contains no comparable provision.
     Conference substitute
       The Conference adopts this Senate provision.


             section 5102. Surface transportation research

     Senate bill
       Section 2005 revises and recodifies 23 U.S.C. 307 at 23 
     U.S.C. 502 and authorizes the Secretary to carry out 
     research, development, and technology transfer activities 
     with respect to motor carrier transportation and all phases 
     of highway planning and development. It requires the 
     Secretary to develop and carry out programs to facilitate the 
     application of products that will improve the safety, 
     efficiency, and effectiveness of the Nation's transportation 
     system. Mandatory elements of the research program are 
     delineated and appropriate reporting requirements are 
     specified. Section 2006 establishes an advanced research 
     program, Section 2007 requires the Secretary to continue the 
     long-term pavement performance program (LTPP), and Section 
     2012 requires the Secretary to make a report to Congress on 
     the Nation's infrastructure investment needs.
     House bill
       Section 611 amends 23 U.S.C. 307 by requiring the Secretary 
     to continue research on the long term performance of 
     pavements (LTPP) and advanced long term highway research. The 
     section changes the existing seismic research program to 
     include all surface transportation modes and requires a 
     biennial report on the condition of the Nation's highways and 
     bridges. The section also requires research into several 
     specific areas, including research on the use of recycle 
     materials such as paper and plastic fiber reinforcement 
     systems.
     Conference substitute
       The Conference adopts the House provision after blending a 
     number of Senate provisions into the final text including the 
     provision from Section 2005 recodifying the general research 
     provision in Chapter 5 of title 23 U.S.C. and provisions from 
     Sections 2006, 2007 and 2012.


                  section 5103. technology deployment

     Senate bill
       Section 2011 directs the Secretary to develop and 
     administer a national technology

[[Page H10507]]

     deployment initiatives (NTDI) program to significantly 
     accelerate the adoption of innovative technologies by the 
     surface transportation community to increase the efficiency 
     and durability and improve the safety of the Nation's 
     transportation system. The Secretary shall continue 
     deployment partnerships established through the strategic 
     highway research program (SHRP). Section 2013 requires the 
     Secretary to establish and carryout an innovative bridge 
     research and construction program.
     House bill
       Section 622 establishes a new national technology 
     deployment initiative. The initiative's purpose is to 
     increase the use of research results by the transportation 
     community. The initiative is to be conducted in cooperation 
     with interested parties and coordinated with other technology 
     transfer activities.
     Conference substitute
       The Conference substitute blends the House and Senate 
     provisions and includes the innovative bridge program within 
     the technology deployment initiative. The provision also 
     includes a directive that the Secretary integrate programs 
     under this section with other technology transfer efforts.


                  section 5104. training and education

     Senate bill
       Section 2009 moves the highway construction and training 
     provisions of 23 U.S.C. 140 into Chapter 5 of title 23 and 
     requires the Secretary to continue to operate the National 
     Highway Institute (NHI) within the FHWA along with the Local 
     Technical Assistance Program (LTAP) and the Eisenhower 
     Fellowship Program.
     House bill
       Section 621 continues the NHI while Section 623 continues 
     the Eisenhower Fellowship Program and the LTAP program. The 
     LTAP program is modified to include industry advancements in 
     the area of concrete and concrete structures in LTAP program 
     activities.
     Conference substitute
       The Conference adopts the Senate provision, but does not 
     move the highway construction and training provisions of 23 
     U.S.C. 140 into Chapter 5 of title 23. The substitute 
     increases the percentage of certain Federal-aid highway funds 
     a State may use for education and training of State and local 
     transportation agency employees.


               section 5105. State planning and research

     Senate bill
       Section 2008 continues the provision under current law that 
     directs 2 percent of certain categories of funds apportioned 
     to the States for each fiscal year to be available to fund 
     state planning and research, including statewide planning 
     under Section 135 of title 23, U.S.C.
     House bill
       Section 612 continues the provision under current law and 
     adds a new Highway Noise Research Center.
     Conference Substitute
       The Conference adopts the House provision.


  section 5106. International highway transportation outreach program

     Senate bill
       Section 2010 continues the current activities aimed at 
     improving U.S. firms access to foreign markets. This section 
     also adds a new provision to enable States to use their State 
     Planning and Research Program funds for international highway 
     transportation activities.
     House bill
       Section 613 expands and broadens the purposes of this 
     program to include the promotion of U.S.highway 
     transportation goods and services and expands the list of 
     eligible activities to include the gathering and 
     dissemination of information on foreign transportation 
     markets and industries. The section allows the Secretary to 
     accept funds from cooperating organizations to reimburse 
     the FHWA for salaries and expenses and allows States to 
     use their State planning and research funds to participate 
     in the International program.
     Conference substitute
       The Conference incorporates both the House and Senate 
     provisions.


 section 5107. surface transportation-environment cooperative research 
                                program

     Senate bill
       Section 2017 establishes in Title 23 a Transportation and 
     Environment Cooperative Research Program as well as an 
     advisory board to recommend environmental and energy 
     conservation research, technology and technology transfer 
     activities related to surface transportation. The Secretary 
     of Transportation may contract or make grants to the National 
     Academy of Sciences to carryout the research and technology 
     activities of this program. The section also calls for the 
     Secretary to conduct a study and prepare a report on the 
     relationship between highway density and ecosystem integrity.
     House bill
       Section 633(a) of the House bill establishes the program in 
     Title 49 and requires that the program include research 
     designed to develop more accurate models for evaluating 
     transportation measures as well as transportation system 
     designs which are usable by State and local governments, to 
     better understand factors contributing to demand for 
     transportation, and to develop indicators of economic, social 
     and environmental performance of transportation systems to 
     facilitate analysis of potential alternatives.
     Conference substitute
       The Conference adopts the House language as 23 U.S.C. 507, 
     adding the Senate study of the relationship between highway 
     density and ecosystem integrity and additional priorities as 
     determined by the Advisory Board to the research program 
     under this section.


    Section 5108. Surface transportation research strategic planning

     Senate bill
       Section 2001 requires the Secretary to establish a 
     strategic planning process to determine national priorities 
     for transportation research and development, coordinate 
     federal activities in the area, and evaluate the impact of 
     Federal investment in research. The Secretary is also 
     required to submit to Congress a report on strategic plans, 
     goals and milestones to help guide research, development and 
     technology transfer activities during a five year period.
     House bill
       Seciton 633 requires the Secretary to establish a 
     performance-based strategic planning process consistent with 
     the Government Performance and Results Act of 1993. The 
     strategic planning process shall address deficiencies in the 
     current program, as identified by the General Accounting 
     Office, Transportation Research Board, and other 
     transportation research and development stakeholders, by 
     setting a strategic direction, defining national priorities, 
     coordinating federal efforts and evaluating the impact of the 
     federal investment in surface transportation R&D. As 
     envisioned by the Results Act, a strategic plan shall be 
     developed to include review and comment from outside sources, 
     the National Research Council and other advisory boards. The 
     plan shall be submitted and updated as required by the 
     Results Act. Under this section, the Secretary is also 
     required to submit a report describing the Department's 
     efforts to establish competitive merit review procedures for 
     programs covered by the strategic plan required under this 
     section. It is the Conferees' expectation, in the absence of 
     more specific legislative instructions, that applications for 
     research and development funding from the Department will be 
     evaluated, to the extent feasible, by academic peers and that 
     strict procedures to ensure that only the most meritorious of 
     applicants will be funded. Consistent with the Results Act, 
     the Secretary is also expected to develop performance 
     measurement procedures for evaluating the programs so that 
     programs are designed with specific goals in mind and 
     evaluated on how well those goals are achieved.
     Conference substitute
       The conference adopts the House provision.


           Section 5109. Bureau of Transportation Statistics

     Senate bill
       Section 2004 expands the list of topics to be covered by 
     the Bureau of Transportation Statistics (BTS) to include 
     transportation related variables influencing global 
     competitiveness, the impact of international trade on the 
     nation's economy and on domestic transportation facilities 
     and services, and transportation's impact on the ability of 
     domestic U.S. businesses to reach foreign markets. This 
     section also requires the BTS Director to coordinate 
     responsibilities for long-term data collection with other 
     efforts to implement the Government Performance and Results 
     Act (GPRA). This section codifies the following existing BTS 
     initiatives: (1) the BTS' Transportation Data Base, including 
     various data on competing and complementary modes of 
     transportation, intermodal combinations, international 
     movement, and local and intercity movements; (2) the BTS' 
     National Transportation Library; and (3) the general content 
     of the BTS' National Transportation Atlas Data Base (NTAD). 
     This section requires the Director of BTS to study freight 
     factors, such as diesel fuel data and miles of international 
     trade traffic. The BTS Director also is required to 
     recommend to Congress what improvements are needed in such 
     data collection for use in the highway apportionment 
     formula. This section authorizes the BTS to establish 
     grants and enter into cooperative agreements with public 
     and nonprofit organizations to conduct research and 
     development for BTS' major activities.
     House bill
       Section 631 makes certain changes to the purposes and 
     authorities of the Bureau of Transportation statistics and 
     provides funding for the Bureau. It requires the 
     establishment of a national transportation library, an atlas 
     database, and an intermodal transportation data base. The 
     Bureau is authorized to make research and development grants. 
     Provisions are included ensuring that certain proprietary or 
     private information that is gathered by the Bureau in the 
     course of its work is not disclosed. The Bureau is given 
     certain responsibilities under the Government Performance and 
     Results Act of 1993.
     Conference substitute
       The Conference adopts the Senate provisions without the 
     study requirements and all related provisions.

[[Page H10508]]

            SECTION 5110. UNIVERSITY TRANSPORTATION RESEARCH

     Senate bill
       Section 2003 directs the Secretary to make grants to or 
     contract with non-profit institutions of higher learning to 
     establish one university transportation center in each of the 
     10 Federal administrative regions that comprise the Standard 
     Federal Regional Boundary Systems. This section also directs 
     the Secretary to make grants to not more than 4 additional 
     university transportation centers to address advanced 
     transportation issues. It outlines the selection criterion 
     and eligibility requirements for the above grants, and limits 
     the Federal share of the cost of establishing and operating a 
     university transportation center and carrying out related 
     research activities under this section to not more than 50 
     percent.
     House bill
       Subsection 624(a) establishes the University Transportation 
     Research program in Chapter 55 of Title 49 consolidating the 
     existing University Transportation Centers and University 
     Research Institutes. The program consists of ten center 
     representing each Federal region and an additional ten 
     centers selected at large. The selection criteria, objectives 
     of the program, and other requirements are established. Any 
     university receiving a grant under this program for FY 1997 
     will receive grants in FY 1998 and FY 1999. The subsection 
     lists universities and consortia the Secretary shall consider 
     along with other applicants, when selecting grant recipients.
       Subsection 624(b) conforms the table of sections for 
     chapter 55 of Title 49.
       Subsection 624(c) establishes and funds the Appalachian 
     Transportation Institute.
       Subsection 624(d) continues and funds the ITS Institute.
     Conference substitute
       The Conference finds that the House and Senate provisions 
     are similar and adopts the House provisions with 
     modifications. In section 5110, the conference continues the 
     10 regional university transportation centers (designated as 
     group A) and establishes a new program to fund additional 
     centers (designated as groups B, C, and D). The institutions 
     in each category are enumerated in 49 U.S.C. 5505(j). All 
     institutions listed in groups A through D receive a grant in 
     fiscal years 1998 and 1999. Beginning in fiscal year 2000, 
     special rules apply for making grants within each group based 
     on specified selection criteria. The conference includes the 
     requirement contained in both bills that establishes the 
     Federal match as 50 percent.


          SECTION 5111. ADVANCED VEHICLE TECHNOLOGIES PROGRAM

     Senate bill
       Section 2016 directs the Secretary to encourage and promote 
     the research, development and deployment of transportation 
     technologies that will use technological advances in 
     multmodal vehicles, vehicle components, environmental 
     technologies, and related infrastructure to remove 
     impediments to an efficient and cost-effective national 
     transportation system. It defines the term ``eligible 
     consortium'' and the conditions that need to be fulfilled in 
     order to receive assistance under this section. It requires 
     the Secretary to report to the Committee on Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate on 
     the projects undertaken by the eligible consortia and the 
     progress made in advancing the purposes of this section.
     House bill
       Seciton 312(b) enables the Secretary to make grants and 
     enter into contracts and cooperative agreements to promote 
     the development and early deployment of innovation in mass 
     transportation technology, services, management, or 
     operational practices. It defines the eligibility criteria 
     for funding under this section as well as ``eligible 
     consortium''. This section limits the Federal share of costs 
     from these programs to 50 percent of the net project costs.
     Conference substitute
       The Conference adopts the Senate provision with the 
     modification that the Secretary include the House Committee 
     on Science to the list of legislative committees receiving 
     the report.


    section 5112. study of future strategic highway research program

     Senate bill
       Section 2015 directs the Secretary to enter into a 
     cooperative agreement with the Transportation Research Board 
     of the National Academy of Sciences (referred to as the 
     `Board' in this section) 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 23 
     U.S.C. section 307(d). It directs the Board to consult with 
     the American Association of State Highway and Transportation 
     Officials in the implementation of this study. This section 
     instructs the Board to submit a final report on the results 
     of this 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.
     House bill
       Section 611(e) is substantially the same as the Senate 
     version but requires the results of the study additionally to 
     be sent to the Committee on Science of the House of 
     Representatives.
     Conference substitute
       The Conferees adopt the House provision.


     section 5113. commercial remote sensing projects and spatial 
                        information technologies

     Senate bill
       Section 2020 authorizes $10 million each year from FY 1999-
     2004 for the Secretary to establish a remote sensing program 
     to optimize highway routing through favorable terrain. The 
     Secretary is to carry out this section in cooperation with 
     the National Aeronautic and Space Administration and a 
     consortium of university research centers.
       House bill
       Section 611 encourages the Secretary to develop a program 
     to study the use of remove sensing and spatial information 
     systems. The Secretary is to consult with other federal 
     agencies and universities experienced in this area to carry 
     out the program.
     Conference substitute
       The Conference adopts the Senate provision as modified to 
     specify that the program should utilize commercial remote 
     sensing products. This is consistent with long-standing space 
     policy of utilizing commercial resources wherever possible, 
     both to save taxpayer money and to support the burgeoning 
     commercial remove sensing industry.


        section 5114. Sense of Congress on the year 2000 problem

     Senate bill
       The Senate bill contains no comparable provision.
     House bill
       Section 605 expresses a sense of Congress that the 
     Department of Transportation should give high priority to 
     making sure that all of its computer systems are reprogrammed 
     to ensure effective operation in the year 2000 and beyond. 
     The Department needs to assess immediately the risk of year 
     2000 problem present for its systems and to develop a plan 
     and a budget to correct Year 2000 problems for its mission-
     critical programs. The Department also need to begin 
     consideration of contingency plans, in the event that certain 
     systems are unable to be corrected in time.
     Conference substitute
       The Conference adopts the House provision.


               Section 5115. International trade traffic

     Senate bill
       Section 2004 of the Senate bill includes a provision 
     directly the Bureau of Transportation Statistics to conduct a 
     study of international trade traffic, including measures of 
     international trade that could be used as formula factors, 
     and to submit the results of this study to Congress within 3 
     years of the date of the enactment of this Act.
     House bill
       The House bill contains no comparable provision.
     Conference substitute
       The conference adopts the Senate study provision in section 
     5115.


                    section 5116. University grants

     Senate bill
       The Senate bill contains no comparable provision
     House bill
       Subsection 211(a) of the House bill directs the Secretary 
     to make grants to establish and maintain a center for 
     transportation injury research at the State University of New 
     York at Buffalo. $2 million in each of fiscal years 1998 
     through 2003 is authorized for this research. This funding 
     shall be use by the Calspan University of Buffalo Research 
     Center to conduct research and testing of invehicle systems 
     and infrastructure-based technology to improve emergency 
     notification, crash characterization, dispatching and 
     delivery of medical and other services to crash victims.
       Subsection 211(b) directs the Secretary to make grants to 
     the Neuroscience Center for Excellence at Louisiana State 
     University and the Virginia Transportation Research Institute 
     at George Washington University for research and technology 
     development relating to head and spinal cord injuries. 
     $500,000 in each of fiscal years 1999 through 2003 is 
     authorized for this research.
     Conference substitute
       Subsection 5116(a) directs the Secretary to make grants to 
     the University of California at San Diego to upgrade 
     earthquake simulation facilities at the University and 
     authorizes $1 million for each of fiscal years 1999 through 
     2002 for such grants.
       Subsection 5116(b) directs the Secretary to make grants to 
     the University of Alabama at Huntsville for global climate 
     research and authorizes $200,000 for each of fiscal years 
     1999 through 2003 of such grants.
       Subsection 5116(c) directs the Secretary to make grants to 
     Auburn University for asphalt research and authorizes 
     $250,000 for each of fiscal years 1999 and 2000 for such 
     grants.
       Subsection 5116(d) directs the Secretary to make grants to 
     the University of Alabama at Tuscaloosa for advanced vehicle 
     research and authorizes $400,000 for each of fiscal years 
     1999 through 2003 for such grants.
       Subsection 5116(e) directs the Secretary to make grants to 
     Oklahoma State University for the Geothermal Heat Pump Smart 
     Bridge Program, and authorizes $1 million for each

[[Page H10509]]

     of fiscal years 1999 through 2001 and $500,000 for fiscal 
     year 2002 for such grants.
       Subsection 5116(f) directs the Secretary to make grants to 
     the University of Oklahoma for the Intelligent Stiffener for 
     Bridge Stress Reduction and authorizes $1 million for each of 
     fiscal years 1999 and 2000 and $500,000 for fiscal year 2001 
     for such grants.
       Subsection 5116(g) directs the Secretary to make grants to 
     the University of Alabama for the study of advanced trauma 
     care and authorizes $750,000 for each of fiscal years 1999 
     through 2003 for such grants.
       In subsection 5116(h), the Conference adopts the House 
     provision on the center for transportation injury research.
       In subsection 5116(i), the Conference adopts the House 
     provision on head and spinal cord injury research.


 section 5117. Transportation technology innovation and demonstration 
                                program

     Senate bill
       The Senate bill contains no similar provision.
     House bill
       Section 632 directs the Secretary to carry out a 
     transportation technology innovation and demonstration 
     program. This section directs the program to develop or 
     improve systems for the use of concrete pavement, motor 
     vehicle safety, asphalt pavement, hazardous materials 
     monitoring, motor carrier advanced sensor control, outreach 
     and technology transfer activities, transportation economic 
     and land use system, intelligent transportation 
     infrastructure, and corrosion control and prevention. It 
     directs the Secretary to make grants to the Texas 
     Transportation Institute to continue the Translink Research 
     program and to continue research into the fundamental 
     properties of asphalts and modified asphalts. It establishes 
     a national center for transportation management and research 
     and development, as well as an infrasture technology 
     institute.
     Conference substitute
       The Conference adopts the House provision with 
     modifications such that the Secretary is directed to study 
     corrosion control and prevention and develop transportation 
     economic and land use systems. The Secretary is further 
     directed to continue research into the fundamental properties 
     of asphalts and asphalts. This section also establishes an 
     Advanced Traffic Monitoring and Response Center, and a 
     Recycled Materials Resource Center.


  section 5118. drexel university intelligent infrastructure institute

     Senate bill
       The Senate bill contains no similar provision.
     House bill
       The House bill contains no comparable provision.
     Conference substitute
       The Conference adopts a provision to establish the 
     Intelligent Infrastructure Institute at Drexel University in 
     Pennsylvania to advance infrastructure research.


                  Section 5119. Conforming amendments

     Senate bill
       Section 2019 of the Senate bill contains a series of 
     amendments to title 23 U.S.C. to conform the title to the 
     changes made by this act.
     House bill
       The House bill contains no comparable provision.
     Conference substitute
       The Conference adopts the conforming amendments.


       Multimodal Transportation Research and Development Program

     Senate bill
       Section 2002 establishes the program to conduct research 
     and technology development for intermodal and multimodal 
     projects. The Secretary shall consult among the 
     Administrators of the operating administrations of the 
     Department and other federal officials with research 
     responsibilities to establish program priorities.
     House bill
       The House bill contains no comparable provision.
     Conference substitute
       The Conference does not adopt the Senate provision.

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