[Congressional Record Volume 150, Number 17 (Wednesday, February 11, 2004)]
[Senate]
[Pages S1026-S1190]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2297. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. LIMITATION ON THE APPLICATION OF THE DAVIS-BACON 
                   ACT.

       The provisions of subchapter IV of chapter 31 of title 40, 
     United States Code (40 U.S.C. 3141 et seq.), commonly known 
     as the Davis-Bacon Act, shall not apply to projects that 
     receive funding under this Act (or an amendment made by this 
     Act).
                                 ______
                                 
  SA 2298. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       In the blank in the appropriate clause in section 
     510(a)(4)(B) of title 23, United States Code (as added by 
     section 2101(a)), insert ``the Southwest Bridge Research 
     Center, comprising New Mexico State University and the 
     Oklahoma Transportation Center''.
                                 ______
                                 
  SA 2299. Mr. BINGAMAN (for himself and Mr. Craig) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 733, strike lines 6 through 10 and insert the 
     following:

     wildlife;
       ``(xvii) installation and maintenance of signs (including 
     fluorescent, yellow-green signs) at pedestrian-bicycle 
     crossings and in school zones; or
       ``(xviii) if the State in which the lanes are located 
     certifies to the Secretary that the upgrading of the lanes 
     will provide a safety benefit, upgrading to 4 lanes portions 
     of rural, 2-lane highways that have high accident rates and 
     that are on--

       ``(I) the National Highway System; or
       ``(II) a high priority corridor identified under section 
     1105(c) of the Intermodal Surface Transportation Efficiency 
     Act of 1991 (105 Stat. 2032).

                                 ______
                                 
  SA 2297. Mr. BINGAMAN (for himself, Mr. Roberts, and Mr. Domenici) 
submitted an amendment intended to be proposed by him to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SOUTHWEST PASSAGE INITIATIVE FOR REGIONAL AND 
                   INTERSTATE TRANSPORTATION.

       Section 1105(c) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2032) is amended by adding 
     at the end the following:
       ``(45) The corridor extending from the point on the border 
     between the United States and Mexico in the State of Texas at 
     which United States Route 54 begins, along United States 
     Route 54 through the States of Texas, New Mexico, Oklahoma, 
     and Kansas, and ending in Wichita, Kansas, to be known as the 
     `Southwest Passage Initiative for Regional and Interstate 
     Transportation Corridor' or `SPIRIT Corridor'.''.
                                 ______
                                 
  SA 2301. Mrs. MURRAY (for herself and Ms. Collins, Mrs. Boxer, Ms. 
Cantwell, Mrs. Clinton, Mr. Cochran, Mr. Corzine, Mr. Edwards, Mr. 
Kennedy, Ms. Mikulski, Ms. Murkowski, Mr. Schumer, Ms. Snowe, and Mr. 
Stevens) submitted an amendment intended to be proposed to amendment SA 
2285 proposed by Mr. Inhofe to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 39, line 1, strike ``$2,000,000,000'' and insert 
     ``$1,328,000,000''.
       On page 39, line 6, strike ``$38,000,000'' and insert 
     ``$150,000,000''.
       Beginning on page 80, strike line 7 and all that follows 
     through page 81, line 3, and insert the following:

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

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

     ``Sec. 147. Construction of ferry boats and ferry terminal 
       and maintenance facilities; coordination of ferry 
       construction, maintenance, and operation

       ``(a) Definitions.--In this section:
       ``(1) Institute.--The term `Institute' means the National 
     Ferry Transportation Institute established under subsection 
     (d).
       ``(2) Office.--The term `Office' means the Ferry Joint 
     Program Office established under subsection (c).
       ``(b) Construction of Ferry Boats and Ferry Terminal and 
     Maintenance Facilities.--
       ``(1) In general.--The Secretary shall carry out a program 
     for construction of ferry boats and ferry terminal and 
     maintenance facilities in accordance with section 129(c).
       ``(2) Federal share.--The Federal share of the cost of 
     construction of ferry boats and ferry terminals and 
     maintenance facilities under this subsection shall be 80 
     percent.
       ``(3) Allocation of Funds.--The Secretary shall give 
     priority in the allocation of funds under this subsection to 
     those ferry systems, and public entities responsible for 
     developing ferries, that--
       ``(A) carry the greatest number of passengers and vehicles;
       ``(B) carry the greatest number of passengers in passenger-
     only service; or
       ``(C) provide critical access to areas that are not well-
     served by other modes of surface transportation.
       ``(c) Ferry Joint Program Office.--
       ``(1) Establishment.--The Secretary shall establish an 
     office, to be known as the `Ferry Joint Program Office'--
       ``(A) to coordinate Federal programs affecting ferry boat 
     and ferry facility construction, maintenance, and operations; 
     and
       ``(B) to promote ferry service as a component of the 
     transportation system of the United States.
       ``(2) Responsibilities.--The Office shall--
       ``(A) coordinate ferry and ferry-related programs 
     (including policy)--
       ``(i) within the Department of Transportation (including 
     the Federal Highway Administration, the Federal Transit 
     Administration, the Maritime Administration, and the Bureau 
     of Transportation Statistics); and
       ``(ii) with the Department of Homeland Security and other 
     Federal and State agencies, as appropriate; and
       ``(B) with respect to the administration of ferry and 
     ferry-related programs--
       ``(i) ensure resource accountability;
       ``(ii) provide strategic leadership for ferry research, 
     development, testing, and deployment; and
       ``(iii) promote ferry transportation as a means to reduce 
     social, economic, and environmental costs associated with 
     traffic congestion.
       ``(d) National Ferry Database.--
       ``(1) In general.--Using the results of the study under 
     section 1207(c) of the Transportation Equity Act for the 21st 
     Century (23 U.S.C. 129 note; 112 Stat. 185), the Secretary 
     shall--
       ``(A) maintain a national ferry database, which shall 
     contain current information regarding--
       ``(i) ferry systems, routes, and vessels;
       ``(ii) passengers and vehicles carried;
       ``(iii) funding sources; and
       ``(iv) such other matters as the Secretary determines to be 
     appropriate; and
       ``(B) in accordance with paragraph (2), update the database 
     and results of the study, as appropriate.
       ``(2) Updated database.--The Secretary shall update the 
     national ferry database--
       ``(A) with respect to the initial updated version, not 
     later than 1 year after the date of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003; and
       ``(B) with respect to subsequent updated versions, every 2 
     years thereafter.
       ``(3) Public accessibility.--The Secretary shall ensure 
     that the national ferry database is easily accessible to the 
     public.
       ``(e) National Ferry Transportation Institute.--
       ``(1) Establishment.--Not later than 1 year after the date 
     of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the Secretary 
     shall

[[Page S1027]]

     make grants to an institution of higher education to 
     establish an institute to be known as the `National Ferry 
     Transportation Institute'.
       ``(2) Administration.--The Secretary shall develop and 
     administer the Institute in cooperation with--
       ``(A) the Department of Transportation;
       ``(B) State transportation departments and State agencies;
       ``(C) public ferry transportation authorities;
       ``(D) private ferry operators;
       ``(E) ferry boat builders;
       ``(F) ferry employees;
       ``(G) other institutions of higher education; and
       ``(H) research institutes.
       ``(3) Functions.--The Institute shall--
       ``(A) conduct research and recommend development activities 
     on methods of improving ferry transportation programs in the 
     United States, including methods of reducing wake and 
     providing alternative propulsion;
       ``(B) develop and conduct training programs for ferry 
     system employees, Federal employees, and other individuals, 
     as appropriate, on recent developments, techniques, and 
     procedures pertaining to the construction and operation of 
     ferries;
       ``(C) encourage and assist collaborative efforts by public 
     and private entities to preserve, improve, and expand the use 
     of ferries as a mode of transportation; and
       ``(D) preserve, use, and display historical information 
     about the use of ferries in the United States and in foreign 
     countries.
       ``(4) Location.--In selecting the location for the 
     Institute, the Secretary shall consider, with respect to the 
     region in which the Institute is to be located--
       ``(A) the importance of public and private ferries to the 
     transportation system of the region, including both regional 
     travel and long-range travel and service to isolated 
     communities;
       ``(B) the historical importance of ferry transportation to 
     the region;
       ``(C) the history and diversity of the maritime community 
     of the region, including ferry construction and repair and 
     other shipbuilding activities;
       ``(D) the anticipated growth of ferry service and ferry 
     boat building in the region;
       ``(E) the availability of public-private collaboration in 
     the region; and
       ``(F) the presence of nationally recognized research 
     colleges and universities in the region.
       ``(5) Report.--Not later than 1 year after the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, and annually thereafter, 
     the Secretary shall submit to Congress a report that 
     describes the activities of the Institute under, and the 
     progress in carrying out, this section.
       ``(6) Funding.--The Secretary may authorize the acceptance 
     and expenditure of funding provided to the Institute by 
     public and private entities.
       ``(f) Set-Aside.--Of the amounts made available under 
     section 1101(a)(14) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, $112,000,000 for 
     each of fiscal years 2004 through 2009 shall be made 
     available to carry out this section.''.
       (b) Conforming Amendments.--
       (1) Section 129(c) of title 23, United States Code, is 
     amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and maintenance'' after ``terminal''; and
       (B) in paragraph (3), by inserting ``or maintenance'' after 
     ``terminal'' each place it appears.
       (2) The analysis for subchapter I of chapter 1 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 147 and inserting the following:

``147. Construction of ferry boats and ferry terminal and maintenance 
              facilities.''.

       (3) Section 1064 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2005) is repealed.
                                 ______
                                 
  SA 2302. Mr. BAYH (for himself, Mr. Durbin, Mr. Lugar, Mr. Kohl, and 
Mr. Fitzgerald) submitted an amendment intended to be proposed by him 
to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ADJUSTMENT OF EQUITY BONUS PROGRAM TO REFLECT TAX 
                   PAYMENTS RELATING TO ETHANOL.

       (a) In General.--Subsection (d) of section 105 of title 23, 
     United States Code, (as amended by section 1104) is amended 
     to read as follows:
       ``(d) Limitation on Adjustments.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3) of subsection (c), no State shall receive, for any fiscal 
     year, additional amounts under subsection (a)(1) if--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceeds
       ``(B) the sum of--
       ``(i) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2); and
       ``(ii) an amount which is equivalent to--

       ``(I) the amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the excess of the tax rate applicable for a 
     gallon of gasoline over the tax rate applicable for a gallon 
     of gasohol for such years; plus
       ``(II) an amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the amount of the tax rate applicable to a 
     gallon of gasohol which is not deposited into the Highway 
     Trust Fund with respect to each such year.

       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B)(i) are--
       ``(A) for fiscal year 2004, 120 percent;
       ``(B) for fiscal year 2005, 130 percent;
       ``(C) for fiscal year 2006, 134 percent;
       ``(D) for fiscal year 2007, 137 percent;
       ``(E) for fiscal year 2008, 145 percent; and
       ``(F) for fiscal year 2009, 250 percent.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply as if made by section 1104 of this Act.
                                 ______
                                 
  SA 2303. Mr. LAUTENBERG submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       Beginning on page 175, strike line 18 and all that follows 
     through page 179, line 13, and insert the following:
       ``(4) Effect on other reviews.--
       ``(A) In general.--For the purpose of compliance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) and any other law requiring an agency that is not the 
     lead agency to determine or consider a project purpose or 
     project need, such an agency acting, permitting, or approving 
     under, or otherwise applying, Federal law with respect to a 
     project shall adopt the determination of purpose and need for 
     the project made by the lead agency.
       ``(B) Conflict.--
       ``(i) In general.--In the case of a conflict described in 
     clause (ii), the Governor of a State, the lead agency, the 
     project sponsor, or the cooperating agency shall promptly 
     convene a meeting with representatives of the relevant 
     cooperating agencies, the lead agency, the project sponsor, 
     and the Governor to resolve the conflict.
       ``(ii) Conflict situations.--A conflict in clause (i) is a 
     situation in which--

       ``(I) after the cooperating agency has commented, a 
     conflict arises between a cooperating agency and the lead 
     agency regarding the objectives in the statement of purpose 
     of, and need for, a project; and
       ``(II) the cooperating agency demonstrates that the ability 
     of the cooperating agency to enforce a law (including a 
     regulation) would be impaired if the objectives were not 
     modified.

       ``(5) Savings.--Nothing in this subsection preempts or 
     interferes with any power, jurisdiction, responsibility, or 
     authority of an agency under applicable law (including 
     regulations) with respect to a project.
       ``(6) Contents.--
       ``(A) In general.--The statement of purpose and need shall 
     include a clear statement of the objectives that the proposed 
     project is intended to achieve.
       ``(B) Effect on existing standards.--Nothing in this 
     subsection shall alter existing standards for defining the 
     purpose and need of a project.
       ``(7) Factors to consider.--The lead agency shall ensure 
     that the following factors and documents are considered in 
     determining the purpose of, and need for, a project:
       ``(A) Transportation plans and related planning documents 
     developed through the statewide and metropolitan 
     transportation planning process under sections 134 and 135.
       ``(B) Land use plans adopted by units of State, local, or 
     tribal government (or, in the case of Federal land, by the 
     applicable Federal land management agencies).
       ``(C) Economic development plans adopted by--
       ``(i) units of State, local, or tribal government; or
       ``(ii) established economic development planning 
     organizations or authorities.
       ``(D) Environmental protection plans, including plans for 
     the protection or treatment of--
       ``(i) air quality;
       ``(ii) water quality and runoff;
       ``(iii) habitat needs of plants and animals;
       ``(iv) threatened and endangered species;
       ``(v) invasive species;
       ``(vi) historic properties; and
       ``(vii) other environmental resources.
       ``(E) Any publicly available plans or policies relating to 
     the national defense, national security, or foreign policy of 
     the United States.
       ``(g) Development of Project Alternatives.--
       ``(1) In general.--With respect to the environmental review 
     process for a project, the alternatives shall be determined 
     in accordance with this subsection.
       ``(2) Authority.--The lead agency shall determine the 
     alternatives to be considered for a project.
       ``(3) Involvement of cooperating agencies and the public.--

[[Page S1028]]

       ``(A) In general.--Before determining the alternatives for 
     a project, the lead agency shall solicit for 30 days and 
     consider any relevant comments on the proposed alternatives 
     received from the public and cooperating agencies.
       ``(B) Alternatives.--The lead agency shall consider--
       ``(i) alternatives that meet the objectives in the purpose 
     and need statement for the project;
       ``(ii) alternatives that satisfy most of the objectives in 
     the purpose and need statement for the project but that are 
     more protective of public health and the environment than 
     other alternatives; and
       ``(iii) the alternative of no action.
       ``(C) Effect on existing standards.--Nothing in this 
     subsection shall alter the existing standards for determining 
     the range of alternatives.
       ``(4) Effect on other reviews.--
       ``(A) In general.--Any other agency acting under or 
     applying Federal law with respect to a project shall consider 
     only the alternatives determined by the lead agency.
       ``(B) Conflict.--
       ``(i) In general.--In the case of a conflict described in 
     clause (ii), the Governor of a State, the lead agency, the 
     project sponsor, or the cooperating agency shall promptly 
     convene a meeting with representatives of the relevant 
     cooperating agencies, the lead agency, the project sponsor, 
     and the Governor to resolve the conflict.
       ``(ii) Conflict situations.--A conflict in clause (i) is a 
     situation in which--

       ``(I) after the cooperating agency has commented, a 
     conflict arises between a cooperating agency and the lead 
     agency regarding the objectives in the statement of purpose 
     of, and need for, a project; and
       ``(II) the cooperating agency demonstrates that the ability 
     of the cooperating agency to enforce a law (including a 
     regulation) would be impaired if the objectives were not 
     modified.

       ``(5) Savings.--Nothing in this subsection preempts or 
     interferes with any power, jurisdiction, responsibility, or 
     authority of an agency under applicable law (including 
     regulations) with respect to a project.
       ``(6) Factors to consider.--The lead agency shall ensure 
     that the following factors and documents are considered in 
     determining the purpose of, and need for, a project:
                                 ______
                                 
  SA 2304. Mr. LAUTENBERG submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following new section:

     SEC.  . MULTI-STATE INTELLIGENT TRANSPORTATION SYSTEM 
                   OPERATIONS.

       (a) In General.--The Secretary shall encourage regional 
     operating organizations, in multi-state, metropolitan areas 
     having multiple metropolitan planning organizations, to 
     promote regional coordination and cooperation in the 
     efficient, safe, and secure operation of regional 
     transportation systems; and, to implement these regional 
     programs in a manner consistent with the needs of the public 
     safety community.
       (b) TRANSCOM's Intelligent Transportation System 
     Projects.--The Secretary shall make annual grants of $9 
     million to TRANSCOM for funding the capital costs as well as 
     the annual operations and maintenance costs of intelligent 
     transportation system (ITS) projects, in the New Jersey/New 
     York/Connecticut metropolitan region. These ITS projects 
     shall also assist the public safety community by providing 
     comprehensive transportation for responding to major regional 
     incidents and by supporting evacuation planning for natural 
     and man-made emergencies.
                                 ______
                                 
  SA 2305. Mr. LAUTENBERG (for himself, Mr. DeWine, Mr. Dorgan, and Mr. 
Corzine) submitted an amendment intended to be proposed to amendment SA 
2285 proposed by Mr. Inhofe to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 137, strike line 10 and insert the following:

     SEC. 1403. HIGHER-RISK IMPAIRED DRIVERS.

       On page 137, line 11, insert ``(a) License Suspension 
     Definition.--'' before ``Section''.
       On page 138, between lines 2 and 3, insert the following:
       (b) Other Definitions.--Section 164 of title 23, United 
     States Code, is further amended--
       (1) by striking subsection (a)(5) and inserting the 
     following:
       ``(5) Higher-risk impaired driver law.--
       ``(A) In general.--The term `higher-risk impaired driver 
     law' means a State law that provides, as a minimum penalty, 
     that an individual described in subparagraph (B) shall--
       ``(i) receive a driver's license suspension for not less 
     than 1 year;
       ``(ii) have the motor vehicle driven at the time of arrest 
     impounded or immobilized for not less than 90 days and for 
     the remainder of the license suspension period require the 
     installation of a certified alcohol ignition interlock device 
     on the vehicle;
       ``(iii) be subject to an assessment by a certified 
     substance abuse official of the State that assesses the 
     individual's degree of abuse of alcohol and assigned to a 
     treatment program or impaired driving education program as 
     determined by the assessment;
       ``(iv) be imprisoned for not less than 10 days, have an 
     electronic monitoring device for not less than 100 days, or 
     be assigned to a DUI/DWI specialty facility for not less than 
     30 days;
       ``(v) be fined a minimum of $1,000, with the proceeds of 
     such funds to be used by the State or local jurisdiction for 
     impaired driving related prevention, enforcement, and 
     prosecution programs, or for the development or maintenance 
     of a tracking system of offenders driving while impaired;
       ``(vi) if the arrest resulted from involvement in a crash, 
     pay court-mandated restitution to the victims of the crash;
       ``(vii) be placed on probation by the court for a period of 
     not less than 2 years;
       ``(viii) if diagnosed with a substance abuse problem, 
     during the first year of the probation period referred to in 
     clause (vii), attend a treatment program for a period of 12 
     consecutive months sponsored by a State certified substance 
     abuse treatment agency and meet with a case manager at least 
     once each month; and
       ``(ix) be required by the court to attend a victim impact 
     panel, if such a panel is available.
       ``(B) Individuals to whom penalties apply.--An individual 
     is described in this subparagraph if that individual--
       ``(i) is convicted of a second or subsequent offense for 
     driving while intoxicated or driving under the influence 
     within a minimum of 10 consecutive years;
       ``(ii) is convicted of driving while intoxicated or driving 
     under the influence with a blood alcohol concentration of 
     0.15 percent or greater; or
       ``(iii) is convicted of a driving-while-suspended offense 
     if the suspension was the result of a conviction for driving 
     under the influence.'';
       (2) by adding at the end of subsection (a) the following:
       ``(6) Special dui/dwi facility.--The term `special DUI/DWI 
     facility' means a facility that houses and treats offenders 
     arrested for driving while impaired and allows such offenders 
     to work or attend school.
       ``(7) Victim impact panel.--The term `victim impact panel' 
     means a group of impaired driving victims who speak to 
     offenders about impaired driving for the purpose of trying to 
     change attitudes and behaviors in order to deter impaired 
     driving recidivism,''; and
       (3) by striking subsection (b) and inserting the following:
       ``(b) Imposition of Higher-Risk Impaired Driving Law 
     Requirement.--
       ``(1) In general.--Notwithstanding any provision of section 
     104 to the contrary, as a condition of receiving the full 
     amount of funds apportioned to a State under paragraphs (1), 
     (3), and (4) of section 104(b), a State shall enact and 
     enforce a higher-risk impaired driver law.
       ``(2) Enforcement by withholding funds.--On October 1st of 
     the following fiscal years, the Secretary shall withhold the 
     applicable percentage of the amount required to be 
     apportioned for Federal-aid highways to a State on that date 
     under each of paragraphs (1), (3), and (4) of section 104(b) 
     if the State has not enacted or is not enforcing a higher-
     risk impaired driver law:
       ``(A) For fiscal year 2008, the applicable percentage is 2 
     percent.
       ``(B) For fiscal year 2009, the applicable percentage is 4 
     percent.
       ``(C) For fiscal year 2010, the applicable percentage is 6 
     percent.
       ``(D) For fiscal year 2011, the applicable percentage is 8 
     percent.''.
                                 ______
                                 
  SA 2306. Mr. LAUTENBERG (for himself, Mr. DeWine, and Mr. Corzine) 
submitted an amendment intended to be proposed to amendment SA 2285 
proposed by Mr. Inhofe to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. TERMINATION OF DETERMINATIONS OF GRANDFATHER RIGHTS.

       (a) In General.--Section 127 of title 23, United States 
     Code, is amended by adding at the end the following:
       ``(h) Grandfather Rights.--
       ``(1) General rule.--After the 270th day following the date 
     of enactment of this subsection, a State may not allow, on a 
     segment of the Interstate System, the operation of a vehicle 
     or combination (other than a longer combination vehicle) 
     exceeding an Interstate weight limit unless the operation is 
     specified on the list published under paragraph (2).
       ``(2) List of vehicles and combinations.--
       ``(A) Proceeding.--Not later than 60 days after the date of 
     enactment of this subsection, the Secretary shall initiate a 
     proceeding to determine and publish a list of vehicles and 
     combinations (other than longer combination vehicles), 
     otherwise exceeding an Interstate weight limit, that the 
     Department of Transportation, any other Federal agency, or a 
     State has determined on or before June 1, 2003, could be 
     lawfully operated within such State--

[[Page S1029]]

       ``(i) on July 1, 1956;
       ``(ii) in the case of the overall gross weight of any group 
     of 2 or more consecutive axles, on the date of enactment of 
     the Federal-Aid Highway Amendments of 1974; or
       ``(iii) under a special rule applicable to a State under 
     subsection (a).
       ``(B) Limitations.--
       ``(i) Actual and lawful operations required.--An operation 
     of a vehicle or combination may be included on the list 
     published under subparagraph (A) only if the vehicle or 
     combination was in actual and lawful operation in the State 
     on a regular or periodic basis on or before June 1, 2003.
       ``(ii) State authority not sufficient.--An operation of a 
     vehicle or combination may not be included on the list 
     published under subparagraph (A) on the basis that a State 
     law or regulation could have authorized the operation of the 
     vehicle or combination at some prior date by permit or 
     otherwise.
       ``(C) Publication of final list.--Not later than 270 days 
     after the date of enactment of this subsection, the Secretary 
     shall publish a final list of vehicles and combinations 
     described in subparagraph (A).
       ``(3) Limitation on statutory construction.--This 
     subsection does not prevent a State from reducing the gross 
     vehicle weight limitation, the single and tandem axle weight 
     limitations, or the overall maximum gross weight on a group 
     of 2 or more consecutive axles applicable to portions of the 
     Interstate System in the State for operations on the list 
     published under paragraph (2)(C) but in no event may any such 
     reduction result in a limitation that is less than an 
     Interstate weight limit.
       ``(4) Applicability of existing requirements.--All vehicles 
     and combinations included on the list published under 
     paragraph (2) shall be subject to all routing-specific, 
     commodity-specific, and weight-specific designations in force 
     in a State on June 1, 2003.
       ``(5) Interstate weight limit defined.--In this subsection, 
     the term `Interstate weight limit' means the 80,000 pound 
     gross vehicle weight limitation, the 20,000 pound single axle 
     weight limitation (including enforcement tolerances), the 
     34,000 pound tandem axle weight limitation (including 
     enforcement tolerances), and the overall maximum gross weight 
     (including enforcement tolerances) on a group of 2 or more 
     consecutive axles produced by application of the formula in 
     subsection (a).''.
       (b) Conforming Amendment.--The fourth sentence of section 
     127(a) of title 23, United States Code, is amended by 
     striking ``the State determines''.

     SEC.__. NONDIVISIBLE LOAD PROCEEDING.

       Section 127 of title 23, United States Code, is further 
     amended by adding at the end the following:
       ``(i) Nondivisible Loads.--
       ``(1) Proceeding.--Not later than 60 days after the date of 
     enactment of this subsection, the Secretary shall initiate a 
     proceeding to define the term `vehicles and loads which 
     cannot be easily dismantled or divided' as used in subsection 
     (a) and section 31112 of title 49.
       ``(2) List of commodities.--
       ``(A) In general.--The definition developed under paragraph 
     (1) shall include a list of commodities (or classes or types 
     of commodities) that do not qualify as nondivisible loads.
       ``(B) Limitation.--The list of commodities developed under 
     paragraph (1) shall not be interpreted to be a comprehensive 
     list of commodities that do not qualify as nondivisible 
     loads.
       ``(3) Regulations.--Not later than 270 days after the date 
     of enactment of this subsection, the Secretary shall issue 
     final regulations setting forth the determination of the 
     Secretary made under paragraph (1). The Secretary shall 
     update the regulations as necessary.
       ``(4) Applicability.--Regulations issued under paragraph 
     (2) shall apply to all vehicles and loads operating on the 
     National Highway System.
       ``(5) State requirements.--A State may establish any 
     requirement that is not inconsistent with regulations issued 
     under paragraph (2).
       ``(6) Statement of policy.--The purpose of this subsection 
     is to promote conformity with Interstate weight limits to 
     preserve publicly funded infrastructure and protect motorists 
     by limiting maximum vehicle weight on key portions of the 
     Federal-aid highway system.''.

     SEC. __. WAIVERS OF WEIGHT LIMITATIONS DURING PERIODS OF 
                   NATIONAL EMERGENCY.

       Section 127 of title 23, United States Code, is further 
     amended by adding at the end the following:
       ``(j) Waivers During Periods of National Emergency.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section or section 126, the Secretary, in consultation 
     with the Secretary of Defense, may waive or limit the 
     application of any vehicle weight limit established under 
     this section or section 126 with respect to a highway route 
     during a period of national emergency in order to respond to 
     the effects of the national emergency.
       ``(2) Applicability.--Emergency limits established under 
     paragraph (1) shall preempt any inconsistent State vehicle 
     weight limits.''.

     SEC. __. VEHICLE WEIGHT LIMITATIONS--NATIONAL HIGHWAY SYSTEM.

       (a) In General.--Title 23, United States Code, is amended 
     by inserting after section 125 the following:

     ``Sec. 126. Vehicle weight limitations--National Highway 
       System

       ``(a) Non-Interstate Highways on NHS.--
       ``(1) In general.--After the 270th day following the date 
     of enactment of this section, any Interstate weight limit 
     that applies to vehicles and combinations (other than longer 
     combination vehicles) operating on the Interstate System in a 
     State under section 127 shall also apply to vehicles and 
     combinations (other than longer combination vehicles) 
     operating on non-Interstate segments of the National Highway 
     System in such State, unless such segments are subject to 
     lower State weight limits as provided for in subsection (d).
       ``(2) Existing highways.--
       ``(A) In general.--Notwithstanding paragraph (1), in the 
     case of a non-Interstate segment of the National Highway 
     System that is open to traffic on June 1, 2003, a State may 
     allow the operation of any vehicle or combination (other than 
     a longer combination vehicle) on such segment that the 
     Secretary determines under subsection (b) could be lawfully 
     operated on such segment on June 1, 2003.
       ``(B) Applicability of state laws and regulations.--All 
     operations described in subparagraph (A) shall continue to be 
     subject to all State statutes, regulations, limitations and 
     conditions, including routing-specific, commodity-specific, 
     and configuration-specific designations and all other 
     restrictions, in force on June 1, 2003.
       ``(3) New highways.--Subject to subsection (d)(1), the 
     gross vehicle weight limitations and axle loading limitations 
     applicable to all vehicles and combinations (other than 
     longer combination vehicles) on a non-Interstate segment of 
     the National Highway System that is not open to traffic on 
     June 1, 2003, shall be the Interstate weight limit.
       ``(b) Listing of Vehicles and Combinations.--
       ``(1) In general.--The Secretary shall initiate a 
     proceeding to determine and publish a list of vehicles and 
     combinations (other than longer combination vehicles), 
     otherwise exceeding an Interstate weight limit, that could be 
     lawfully operated on a non-Interstate segment of the National 
     Highway System on June 1, 2003.
       ``(2) Requirements.--In publishing a list of vehicles and 
     combinations under paragraph (1), the Secretary shall 
     identify--
       ``(A) the gross vehicle weight limitations and axle loading 
     limitations in each State applicable, on June 1, 2003, to 
     vehicles and combinations (other than longer combination 
     vehicles) on non-Interstate segments of the National Highway 
     System; and
       ``(B) operations of vehicles and combinations (other than 
     longer combination vehicles), exceeding State gross vehicle 
     weight limitations and axle loading limitations identified 
     under subparagraph (A), which were in actual and lawful 
     operation on a regular or periodic basis (including seasonal 
     operations) on June 1, 2003.
       ``(3) Limitation.--An operation of a vehicle or combination 
     may not be included on the list published under paragraph (1) 
     on the basis that a State law or regulation could have 
     authorized such operation at some prior date by permit or 
     otherwise.
       ``(4) Publication of final list.--Not later than 270 days 
     after the date of enactment of this section, the Secretary 
     shall publish a final list of vehicles and combinations 
     described in paragraph (1).
       ``(5) Updates.--The Secretary shall update the list 
     published under paragraph (1) as necessary to reflect new 
     designations made to the National Highway System.
       ``(c) Applicability of Limitations.--The limitations 
     established by subsection (a) shall apply to any new 
     designation made to the National Highway System and remain in 
     effect on those non-Interstate highways that cease to be 
     designated as part of the National Highway System.
       ``(d) Limitations on Statutory Construction.--
       ``(1) State enforcement of more restrictive weight 
     limits.--This section does not prevent a State from 
     maintaining or imposing a weight limitation that is more 
     restrictive than the Interstate weight limit on vehicles or 
     combinations (other than longer combination vehicles) 
     operating on a non-Interstate segment of the National Highway 
     System.
       ``(2) State actions to reduce weight limits.--This section 
     does not prevent a State from reducing the State's gross 
     vehicle weight limitation, single or tandem axle weight 
     limitations, or the overall maximum gross weight on 2 or more 
     consecutive axles on any non-Interstate segment of the 
     National Highway System.
       ``(e) Longer Combination Vehicles.--
       ``(1) Prohibition.--
       ``(A) In general.--After the 270th day following the date 
     of enactment of this section, a longer combination vehicle 
     may continue to operate on a non-Interstate segment of the 
     National Highway System only if the operation of the longer 
     combination vehicle configuration type was authorized by 
     State officials pursuant to State statute or regulation on 
     June 1, 2003, and in actual and lawful operation on a regular 
     or periodic basis (including seasonal operations) on or 
     before June 1, 2003.
       ``(B) Applicability of state laws and regulations.--All 
     operations described in subparagraph (A) shall continue to be 
     subject to all State statutes, regulations, limitations and 
     conditions, including routing-specific, commodity-specific, 
     and configuration-specific designations and all other 
     restrictions, in force on June 1, 2003.

[[Page S1030]]

       ``(2) Listing of vehicles and combinations.--
       ``(A) In general.--Not later than 60 days after the date of 
     enactment of this section, the Secretary shall initiate a 
     proceeding to determine and publish a list of longer 
     combination vehicles that could be lawfully operated on non-
     Interstate segments of the National Highway System on June 1, 
     2003.
       ``(B) Limitation.--A longer combination vehicle may not be 
     included on the list published under subparagraph (A) on the 
     basis that a State law or regulation could have authorized 
     the operation of such vehicle at some prior date by permit or 
     otherwise.
       ``(C) Publication of final list.--Not later than 270 days 
     after the date of enactment of this section, the Secretary 
     shall publish a final list of longer combination vehicles 
     described in subparagraph (A).
       ``(D) Updates.--The Secretary shall update the list 
     published under subparagraph (A) as necessary to reflect new 
     designations made to the National Highway System.
       ``(3) Limitation on statutory construction.--This 
     subsection does not prevent a State from further restricting 
     in any manner or prohibiting the operation of a longer 
     combination vehicle; except that such restrictions or 
     prohibitions shall be consistent with the requirements of 
     section 127 of this title and sections 31112 through 31114 of 
     title 49, United States Code.
       ``(f) Model Schedule of Fines.--
       ``(1) In general.--The Secretary, in consultation with the 
     States, shall establish a model schedule of fines to be 
     assessed for violations of this section.
       ``(2) Purpose.--The purpose of the schedule of fines shall 
     be to ensure that fines are sufficient to deter violations of 
     the requirements of this section and to permit States to 
     recover costs associated with damages caused to the National 
     Highway System by the operation of such vehicles.
       ``(3) Adoption by states.--The Secretary shall encourage 
     but not require States to adopt the schedule of fines.
       ``(g) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Interstate weight limit.--The term `Interstate weight 
     limit' has the meaning given such term in section 127(h).
       ``(2) Longer combination vehicle.--The term `longer 
     combination vehicle' has the meaning given such term in 
     section 127(d).''.
       (b) Enforcement of Requirements.--Section 141(a) of title 
     23, United States Code, is amended--
       (1) by striking ``the Federal-aid primary system, the 
     Federal-aid urban system, and the Federal-aid secondary 
     system, including the Interstate System'' and inserting ``the 
     National Highway System, including the Interstate System,''; 
     and
       (2) by striking ``section 127'' and inserting ``sections 
     126 and 127''.
       (c) Conforming Amendment.--The analysis for title 23, 
     United States Code, is amended by inserting after the item 
     relating to section 125 the following:

``126. Vehicle weight limitations--National Highway System.''.
                                 ______
                                 
  SA 2307. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end, add the following:

               TITLE VII--MEASURES TO CONSERVE PETROLEUM

     SEC. 7001. REDUCTION OF DEPENDENCE ON IMPORTED PETROLEUM.

       (a) Report.--
       (1) In general.--Not later than February 1, 2005, and 
     annually thereafter, the President shall submit to Congress a 
     report, based on the most recent edition of the Annual Energy 
     Outlook published by the Energy Information Administration, 
     assessing the progress made by the United States toward the 
     goal of reducing dependence on imported petroleum sources by 
     2014.
       (2) Contents.--The report under subsection (a) shall--
       (A) include a description of the implementation, during the 
     previous fiscal year, of provisions under existing law 
     relating to domestic crude petroleum production;
       (B) assess the effectiveness of those provisions in meeting 
     the goal described in paragraph (1); and
       (C) describe the progress in developing and implementing 
     measures under subsection (b).
       (b) Measures To Reduce Import Dependence Through Increased 
     Domestic Petroleum Conservation.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the President shall develop and 
     implement measures to conserve petroleum in end-uses 
     throughout the economy of the United States sufficient to 
     reduce total demand for petroleum in the United States by 
     1,000,000 barrels per day from the amount projected for 
     calendar year 2014 in the reference case contained in the 
     report of the Energy Information Administration entitled 
     ``Annual Energy Outlook 2004''.
       (2) Contents.--The measures under paragraph (1) shall be 
     designed to ensure continued reliable and affordable energy 
     for consumers.
       (3) Implementation.--The measures under paragraph (1) shall 
     be implemented under existing authorities of appropriate 
     Federal executive agencies identified by the President.
                                 ______
                                 
  SA 2308. Mr. CORZINE submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 762, between lines 12 and 13 insert the following 
     new paragraph:
       ``(6) The costs of operating programs that impound the 
     vehicle of an individual arrested as an impaired operator of 
     a motor vehicle for not less than 12 hours after the operator 
     is arrested.
                                 ______
                                 
  SA 2309. Mr. CORZINE (for himself and Mr. Lautenberg) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe  to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. IMPOUNDING VEHICLES OF INTOXICATED ARRESTEES.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1814(a)), is 
     amended by adding at the end the following:

     ``Sec. 176. Impounding vehicles of intoxicated arrestees

       ``(a) Definition of Motor Vehicle.--In this section, the 
     term `motor vehicle' means a vehicle driven or drawn by 
     mechanical power and manufactured primarily for use on public 
     highways, but does not include a vehicle operated only on a 
     rail.
       ``(b) Withholding of Apportionments for Noncompliance.--
       ``(1) Fiscal year 2005.--The Secretary shall withhold 5 
     percent of the amount required to be apportioned to any State 
     under each of paragraphs (1), (3), and (4) of section 104(b) 
     on October 1, 2004, if the State does not meet the 
     requirements of paragraph (3) on that date.
       ``(2) Subsequent fiscal years.--The Secretary shall 
     withhold 10 percent of the amount required to be apportioned 
     to any State under each of paragraphs (1), (3), and (4) of 
     section 104(b) on October 1, 2005, and on October 1 of each 
     fiscal year thereafter, if the State does not meet the 
     requirements of paragraph (3) on that date.
       ``(3) Requirements.--A State meets the requirements of this 
     paragraph if the State has enacted and is enforcing a law 
     that is substantially provides for each of the following:
       ``(A) If a person has been arrested for public 
     intoxication, the arresting law enforcement agency shall 
     impound the vehicle that the person was operating at the time 
     of arrest.
       ``(B) A vehicle impounded pursuant to this subparagraph 
     shall be impounded for a period of 12 hours after the time of 
     arrest or until such later time as the arrestee claiming the 
     vehicle meets the conditions for release under subparagraph 
     (D).
       ``(C) A vehicle impounded pursuant to this subparagraph may 
     be released to a person other than the arrestee prior to the 
     end of the impoundment period only if--
       ``(i) the vehicle is not owned or leased by the person 
     under arrest and the person who owns or leases the vehicle 
     claims the vehicle and meets the conditions for release under 
     subparagraph (D); or
       ``(ii) the vehicle is owned or leased by the arrestee, the 
     arrestee gives permission to another person, who has 
     acknowledged in writing receipt of the statement to operate 
     the vehicle and the conditions for release under subparagraph 
     (D).
       ``(D) A vehicle impounded pursuant to this subparagraph 
     shall not be released unless the person claiming the 
     vehicle--
       ``(i) presents a valid operator's license, proof of 
     ownership or lawful authority to operate the vehicle, and 
     proof of valid motor vehicle insurance for that vehicle;
       ``(ii) is able to operate the vehicle in a safe manner and 
     would not be in violation driving while intoxicated laws; and
       ``(iii) meets any other conditions for release established 
     by the law enforcement agency.
       ``(E) A law enforcement agency impounding a vehicle 
     pursuant to this subparagraph is authorized to charge a 
     reasonable fee for towing and storage of the vehicle. The law 
     enforcement agency is further authorized to retain custody of 
     the vehicle until that fee is paid.
       ``(c) Period of Availability; Effect of Compliance and 
     Noncompliance.--
       ``(1) Period of availability of withheld funds.--Any funds 
     withheld under subsection (b) from apportionment to any State 
     shall remain available until the end of the fourth fiscal 
     year following the fiscal year for which the funds are 
     authorized to be appropriated.
       ``(2) Apportionment of withheld funds after compliance.--
     If, before the last day of the period for which funds 
     withheld under subsection (b) from apportionment are to 
     remain available for apportionment to a State under paragraph 
     (1), the State meets the requirements of subsection (a)(3), 
     the Secretary shall, on the first day on which the State 
     meets the requirements, apportion to

[[Page S1031]]

     the State the funds withheld under subsection (b) that remain 
     available for apportionment to the State.
       ``(3) Period of availability of subsequently apportioned 
     funds.--
       ``(A) In general.--Any funds apportioned under paragraph 
     (2) shall remain available for expenditure until the end of 
     the third fiscal year following the fiscal year in which the 
     funds are so apportioned.
       ``(B) Treatment of certain funds.--Any funds apportioned 
     under paragraph (2) that are not obligated at the end of the 
     period referred to in subparagraph (A) shall be allocated 
     equally among the States that meet the requirements of 
     subsection (a)(3).
       ``(4) Effect of noncompliance.--If, at the end of the 
     period for which funds withheld under subsection (b) from 
     apportionment are available for apportionment to a State 
     under paragraph (1), the State does not meet the requirements 
     of subsection (a)(3), the funds shall be allocated equally 
     among the States that meet the requirements of subsection 
     (a)(3).''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1814(c)), is amended by adding at the end the 
     following:

``176. Impounding vehicles of impounded arrestees.''.
                                 ______
                                 
  SA 2310. Mr. CORZINE submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. MOBILE TELEPHONE USE WHILE OPERATING MOTOR 
                   VEHICLES.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1814(a)), is 
     amended by adding at the end the following:

     ``Sec. 176. Mobile telephone use while operating motor 
       vehicles

       ``(a) Definition of Motor Vehicle.--In this section, the 
     term `motor vehicle' means a vehicle driven or drawn by 
     mechanical power and manufactured primarily for use on public 
     highways, but does not include a vehicle operated only on a 
     rail.
       ``(b) Withholding of Apportionments for Noncompliance.--
       ``(1) Fiscal year 2005.--The Secretary shall withhold 5 
     percent of the amount required to be apportioned to any State 
     under each of paragraphs (1), (3), and (4) of section 104(b) 
     on October 1, 2004, if the State does not meet the 
     requirements of paragraph (3) on that date.
       ``(2) Subsequent fiscal years.--The Secretary shall 
     withhold 10 percent of the amount required to be apportioned 
     to any State under each of paragraphs (1), (3), and (4) of 
     section 104(b) on October 1, 2005, and on October 1 of each 
     fiscal year thereafter, if the State does not meet the 
     requirements of paragraph (3) on that date.
       ``(3) Requirements.--
       ``(A) In general.--A State meets the requirements of this 
     paragraph if the State has enacted and is enforcing a law 
     that prohibits an individual from using a mobile telephone 
     (other than a mobile telephone used as described in 
     subparagraph (B)) while operating a motor vehicle, except in 
     the case of an emergency or other exceptional circumstance 
     (as determined by the State).
       ``(B) Hands-free devices.--A State law described in 
     subparagraph (A) may permit an individual operating a motor 
     vehicle to use a mobile telephone with a device that permits 
     hands-free operation of the telephone if the State determines 
     that such use does not pose a threat to public safety.
       ``(c) Period of Availability; Effect of Compliance and 
     Noncompliance.--
       ``(1) Period of availability of withheld funds.--Any funds 
     withheld under subsection (b) from apportionment to any State 
     shall remain available until the end of the fourth fiscal 
     year following the fiscal year for which the funds are 
     authorized to be appropriated.
       ``(2) Apportionment of withheld funds after compliance.--
     If, before the last day of the period for which funds 
     withheld under subsection (b) from apportionment are to 
     remain available for apportionment to a State under paragraph 
     (1), the State meets the requirements of subsection (a)(3), 
     the Secretary shall, on the first day on which the State 
     meets the requirements, apportion to the State the funds 
     withheld under subsection (b) that remain available for 
     apportionment to the State.
       ``(3) Period of availability of subsequently apportioned 
     funds.--
       ``(A) In general.--Any funds apportioned under paragraph 
     (2) shall remain available for expenditure until the end of 
     the third fiscal year following the fiscal year in which the 
     funds are so apportioned.
       ``(B) Treatment of certain funds.--Any funds apportioned 
     under paragraph (2) that are not obligated at the end of the 
     period referred to in subparagraph (A) shall be allocated 
     equally among the States that meet the requirements of 
     subsection (a)(3).
       ``(4) Effect of noncompliance.--If, at the end of the 
     period for which funds withheld under subsection (b) from 
     apportionment are available for apportionment to a State 
     under paragraph (1), the State does not meet the requirements 
     of subsection (a)(3), the funds shall be allocated equally 
     among the States that meet the requirements of subsection 
     (a)(3).''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1814(c)), is amended by adding at the end the 
     following:

``176. Mobile telephone use while operating motor vehicles.''.
                                 ______
                                 
  SA 2311. Mrs. CLINTON (for herself, Mr. Bingaman, Mr. Byrd, Mr. Dodd, 
Mr. Sarbanes, Mr. Corzine, Mr. Lieberman, Mr. Rockefeller, Mr. Harkin, 
and Ms. Stabenow) proposed an amendment to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF THE SENATE CONCERNING THE OUTSOURCING OF 
                   AMERICAN JOBS.

       (a) Findings.--The Senate finds that--
       (1) the President's Chairman of the Council of Economic 
     Advisors recently described the outsourcing of American jobs 
     overseas ``as a good thing'' and said, ``outsourcing is just 
     a new way of doing international trade'';
       (2) the President's economic policies have either failed to 
     address or exacerbated the loss of manufacturing jobs that 
     our country has experienced over the last 3 years;
       (3) American families are facing an economy with the fewest 
     jobs created since the Great Depression;
       (4) 2,900,000 private sector jobs have been lost since 
     January 2001, including 2,800,000 manufacturing jobs;
       (5) on several occasions the Senate has supported reforming 
     our tax laws to eliminate policies that make it cheaper to 
     move jobs overseas; and
       (6) job creation is essential to the economic stability of 
     the United States and the Administration should pursue 
     policies that serve as an engine for economic growth, higher 
     wage jobs, and increased productivity.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Senate should--
       (1) oppose any efforts to encourage the outsourcing of 
     American jobs overseas; and
       (2) adopt legislation providing for a manufacturing tax 
     incentive to encourage job creation in the United States and 
     oppose efforts to make it cheaper to send jobs overseas.
                                 ______
                                 
  SA 2312. Mr. CORZINE submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 724, strike line 19 and all that follows through 
     page 725, line 2, and insert the following:
       (A) by redesignating clause (6) as clause (8);
       (B) by inserting after ``involving school buses,'' at the 
     end of clause (5) the following: ``(6) to reduce aggressive 
     driving and to educate drivers about defensive driving, (7) 
     to reduce accidents resulting from fatigued and distracted 
     drivers, including distractions arising from the use of 
     electronic devices in vehicles,''; and
       (C) by inserting ``aggressive driving, distracted 
     driving,'' after ``school bus accidents,''.
       On page 731, between lines 12 and 13, insert the following:
       ``(5) Research on distracted, inattentive, and fatigued 
     drivers.--In conducting research under subsection (a)(3), the 
     Secretary shall carry out not less than 10 demonstration 
     projects to evaluate new and innovative means of combatting 
     traffic system problems caused by distracted, inattentive, or 
     fatigued drivers. The demonstration projects shall be in 
     addition to any other research carried out under this 
     subsection.
       On page 770, between lines 7 and 8, insert the following:
       ``(2) Data on use of electronic devices.--The model data 
     elements required under paragraph (1) shall include data 
     elements, as determined appropriate by the Secretary in 
     consultation with the States and with appropriate elements of 
     the law enforcement community, on the impact on traffic 
     safety of the use of electronic devices while driving.
       On page 770, line 8, strike ``(2)'' and insert ``(3)''.
       On page 770, line 19, strike ``(3)'' and insert ``(4)''.
       On page 770, line 23, strike ``(4)'' and insert ``(5)''.
                                 ______
                                 
  SA 2313. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In lieu of section 3032 insert the following:

     SEC. 3032. EMPLOYEE PROTECTIVE ARRANGEMENTS.

       Section 5333 is amended--
       (1) in subsection (a), by striking ``(a) Prevailing Wages 
     Requirement.--''; and

[[Page S1032]]

       (2) by striking subsection (b).
                                 ______
                                 
  SA 2314. Mr. CAMPBELL (for himself and Mr. Inouye) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 20, between lines 6 and 7, insert the following:
       ``(__) Indian land.--The term `Indian land' means--
       ``(A) any land located within the boundaries of an Indian 
     reservation, pueblo, or rancheria;
       ``(B) any land not located within the boundaries of an 
     Indian reservation, pueblo, or rancheria, the title to which 
     is held--
       ``(i) in trust by the United States for the benefit of an 
     Indian tribe;
       ``(ii) by an Indian tribe, subject to restriction by the 
     United States against alienation; or
       ``(iii) by a dependent Indian community; and
       ``(C) land conveyed as part of an original conveyance to a 
     Native Corporation in accordance with the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601 et seq.).
       ``(__) Indian reservation.--The term `Indian reservation' 
     includes--
       ``(A) an Indian reservation in existence as of the date of 
     enactment of the Indian Tribal Surface Transportation 
     Improvement Act of 2003;
       ``(B) a public domain Indian allotment;
       ``(C) a former reservation in the State of Oklahoma;
       ``(D) a parcel of land conveyed as part of an original 
     conveyance to a Native Corporation in accordance with the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.); 
     and
       ``(E) a dependent Indian community located within the 
     borders of the United States, regardless of whether the 
     community is located--
       ``(i) on original or acquired territory of the community; 
     or
       ``(ii) within or outside the boundaries of any particular 
     State.

       On page 20, after line 25, add the following:
       ``(__) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       On page 31, between lines 15 and 16, insert the following:
       ``(__) Tribal transportation facility.--The term `tribal 
     transportation facility' means any transportation-related 
     project, facility, or physical infrastructure for an Indian 
     tribe that is funded under this title.
       Beginning on page 321, strike line 14 and all that follows 
     through page 323, line 10, and insert the following:
       ``(B) Funding.--
       ``(i) Reservation of funds.--Notwithstanding any other 
     provision of law, there is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $15,000,000 for each of fiscal years 2004 through 2009 to 
     carry out planning, design, engineering, preconstruction, 
     construction, and inspection of projects to replace,''; and
       (B) by adding at the end the following:
       ``(ii) Availability.--Funds made available to carry out 
     this subparagraph--

       ``(I) shall be available for obligation in the same manner 
     as if the funds were apportioned under chapter 1; and
       ``(II) shall not be available to the Bureau of Indian 
     Affairs to pay administrative costs.''; and

       (5) by adding at the end the following:
       ``(f) Administration of Indian Reservation Roads.--
       ``(1) Contract authority.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, for any fiscal year, not more than 6 percent of the 
     contract authority amounts made available from the Highway 
     Trust Fund to the Bureau of Indian Affairs under this title 
     shall be used to pay the administrative expenses of the 
     Bureau for the Indian reservation roads program (including 
     the administrative expenses relating to individual projects 
     that are associated with the program).
       ``(B) Availability.--Amounts made available to pay 
     administrative expenses under subparagraph (A) shall be made 
     available to an Indian tribal government, on the request of 
     the government, to be used for the associated administrative 
     functions assumed by the Indian tribe under contracts and 
     agreements entered into under the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450b et seq.).
       ``(2) Health and safety assurances.--Notwithstanding any 
     other provision of law, an Indian tribe or tribal 
     organization may commence road and bridge construction under 
     the Transportation Equity Act for the 21st Century (Public 
     Law 105-178) or its successor Act of Congress that is funded 
     through a contract or agreement under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b et 
     seq.) if the Indian tribe or tribal organization--
       ``(A) provides assurances in the contract or agreement that 
     the construction will meet or exceed applicable health and 
     safety standards;
       ``(B) obtains the advance review of the plans and 
     specifications from a licensed professional that has 
     certified that the plans and specifications meet or exceed 
     the applicable health and safety standards; and
       ``(C) provides a copy of the certification under 
     subparagraph (B) to the Assistant Secretary for Indian 
     Affairs.''.
       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. INDIAN TRIBAL SURFACE TRANSPORTATION.

       (a) Funding for Indian Reservation Roads Program.--Section 
     1101(a)(8) of the Transportation Equity Act for the 21st 
     Century (112 Stat. 112) is amended by striking subparagraph 
     (A) and inserting the following:
       ``(A) Indian reservation roads.--
       ``(i) In general.--Subject to clause (ii), for Indian 
     reservation roads under section 204 of that title--

       ``(I) $330,000,000 for each of fiscal years 2004 through 
     2005;
       ``(II) $425,000,000 for each of fiscal years 2006 through 
     2007; and
       ``(III) $550,000,000 for each of fiscal years 2008 through 
     2009.

       ``(ii) Maintenance.--Of the amounts made available for each 
     fiscal year under clause (i), not less than $50,000,000 shall 
     be used--

       ``(I) to maintain roads on Indian land; and
       ``(II) to maintain tribal transportation facilities serving 
     Indian communities.''.

       (b) Obligation Ceiling.--Section 1102(c)(1) of the 
     Transportation Equity Act for the 21st Century (23 U.S.C. 104 
     note; 112 Stat. 116) is amended--
       (1) by striking ``distribute obligation'' and inserting the 
     following: ``distribute--
       ``(A) obligation'';
       (2) by inserting ``and'' after the semicolon at the end; 
     and
       (3) by adding at the end of the following:
       ``(B) for each of fiscal years 2004 through 2009, any 
     amount of obligation authority made available for Indian 
     reservation road bridges under section 202(d)(4), and for 
     Indian reservation roads under section 204, of title 23, 
     United States Code.''.
       (c) Tribal Contracting Demonstration Project.--
       (1) In general.--Section 202(d)(3) of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(C) Federal lands highway program demonstration 
     project.--
       ``(i) In general.--The Secretary shall establish a 
     demonstration project under which all funds made available 
     under this chapter for Indian reservation roads and for 
     highway bridges located on Indian reservation roads as 
     provided for in subparagraph (A) shall be made available, on 
     the request of an affected Indian tribal government, to the 
     Indian tribal government for use in carrying out, in 
     accordance with the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b et seq.), contracts and 
     agreements for the planning, research, engineering, and 
     construction described in that subparagraph.
       ``(ii) Exclusion of agency participation.--In accordance 
     with subparagraph (B), all funds for Indian reservation roads 
     and for highway bridges located on Indian reservation roads 
     to which clause (i) applies shall be paid without regard to 
     the organizational level at which the Federal lands highway 
     program has previously carried out the programs, functions, 
     services, or activities involved.
       ``(iii) Selection of participating tribes.--

       ``(I) Participants.--

       ``(aa) In general.--In addition to those Indian tribes or 
     tribal organizations already contracting or compacting for 
     any Indian reservation road function or program, for each 
     fiscal year, the Secretary may select up to 15 Indian tribes 
     from the applicant pool described in subclause (II) to 
     participate in the demonstration project carried out under 
     clause (i).
       ``(bb) Consortia.--Two or more Indian tribes that are 
     otherwise eligible to participate in a program or activity to 
     which this title applies may form a consortium to be 
     considered as a single Indian tribe for the purpose of 
     becoming part of the applicant pool under subclause (II).
       ``(cc) Funding.--An Indian tribe participating in the pilot 
     program under this subparagraph shall receive funding in an 
     amount equal to the sum of the funding that the Indian tribe 
     would otherwise receive in accordance with the funding 
     formula established under the other provisions of this 
     subsection, and an additional percentage of that amount equal 
     to the percentage of funds withheld during the applicable 
     fiscal year for the road program management costs of the 
     Bureau of Indian Affairs under subsection (f)(1).

       ``(II) Applicant pool.--The applicant pool described in 
     this subclause shall consist of each Indian tribe (or 
     consortium) that--

       ``(aa) has successfully completed the planning phase 
     described in subclause (IV);
       ``(bb) has requested participation in the demonstration 
     project under this subparagraph through the adoption of a 
     resolution or other official action by the tribal governing 
     body; and
       ``(cc) has demonstrated financial stability and financial 
     management capability in accordance with subclause (III) 
     during the 3-fiscal-year period immediately preceding the 
     fiscal year for which participation under this subparagraph 
     is being requested.

       ``(III) Criteria for determining financial stability and 
     financial management capacity.--For the purpose of subclause 
     (II), evidence that, during the 3-year period referred

[[Page S1033]]

     to in subclause (II)(cc), an Indian tribe had no uncorrected 
     significant and material audit exceptions in the required 
     annual audit of the Indian tribe's self-determination 
     contracts or self-governance funding agreements with any 
     Federal agency shall be conclusive evidence of the required 
     stability and capability.
       ``(IV) Planning phase.--

       ``(aa) In general.--An Indian tribe (or consortium) 
     requesting participation in the demonstration project under 
     this subparagraph shall complete a planning phase that shall 
     include legal and budgetary research and internal tribal 
     government and organization preparation.
       ``(bb) Eligibility.--A tribe (or consortium) described in 
     item (aa) shall be eligible to receive a grant under this 
     subclause to plan and negotiate participation in a project 
     described in that item.

       ``(V) Report to congress.--Not later than September 30, 
     2006, the Secretary shall prepare and submit to Congress a 
     report describing the implementation of the demonstration 
     project and any recommendations for improving the project.''.

       (2) Conforming amendments.--
       (A) Section 4 of the Indian Self-Determination andEducation 
     Assistance Act (25 U.S.C. 450b(i)) is amended by striking 
     subsection (i) and inserting the following:
       ``(i) Secretary.--Except as otherwise provided, the term 
     `Secretary' means any 1 or more of the following, as 
     appropriate:
       ``(1) The Secretary of Health and Human Services.
       ``(2) The Secretary of the Interior.
       ``(3) The Secretary of Transportation.''
       (B) Section 401 of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 458aa) is amended--
       (i) by striking ``The Secretary'' and inserting ``(a) In 
     General.--The Secretary''; and
       (ii) by adding at the end the following:
       ``(b) Secretary of Transportation.--Notwithstanding any 
     other provision of law, the Secretary of Transportation may 
     enter into self-governance compacts and annual funding 
     agreements with Indian tribes and tribal organizations to 
     carry out tribal transportation programs (including transit 
     programs) authorized under title 23 or 49, United States 
     Code, in accordance with the terms, conditions, and 
     procedures of this Act (including regulations promulgated 
     under this Act (part 1000 of title 25 Code of Federal 
     Regulations)).''.
       (d) Indian Reservation Road Planning.--Section 204(j) of 
     title 23, United States Code, is amended in the first 
     sentence by striking ``2 percent'' and inserting ``5 
     percent''.
       (e) Alaska Native Village Transportation Program.--Section 
     204 of title 23, United States Code (as amended by section 
     1816), is amended by adding at the end the following:
       ``(p) Alaska Native Village Transportation Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Commission.--The term `Commission' means the Alaska 
     Native Transportation Commission established under paragraph 
     (4)(A).
       ``(B) Native.--The term `Native' has the meaning given the 
     term in section 3 of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1602).
       ``(C) Native authority.--The term `Native authority' means 
     a governing board of a Regional Corporation, a regional 
     Native nonprofit entity, a tribal government, or an 
     alternative regional entity that is designated by the 
     Secretary as a Native regional transportation authority under 
     paragraph (3)(A).
       ``(D) Native village.--The term `Native village' has the 
     meaning given the term in section 3 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1602).
       ``(E) Program.--The term `program' means the Alaska Native 
     village transportation program established under paragraph 
     (2).
       ``(F) Region.--The term `region' means a region in the 
     State specified in section 11(b)(1) of the Alaska Native 
     Claims Settlement Act (43 U.S.C 1610(b)(1)).
       ``(G) Regional corporation.--The term `Regional 
     Corporation' has the meaning given the term in section 2 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1602).
       ``(H) State.--The term `State' means the State of Alaska.
       ``(2) Establishment.--The Secretary shall establish an 
     Alaska Native village transportation program to pay the costs 
     of planning, design, construction, and maintenance of road 
     and other surface transportation facilities identified in 
     accordance with this section.
       ``(3) Alaska native regional transportation authorities.--
       ``(A) Designation.--The Secretary shall designate a Native 
     authority for each region.
       ``(B) Responsibilities.--A Native authority shall, with 
     respect to each Native village or region, as appropriate, 
     covered by the Native authority--
       ``(i) prepare--

       ``(I) a regional transportation plan for the Native 
     village; and
       ``(II) a comprehensive transportation plan for the region;

       ``(ii) prioritize and select projects to be funded with 
     amounts made available under this section for the region;
       ``(iii) coordinate transportation planning with other 
     regions, the State, and other governmental entities; and
       ``(iv) ensure that transportation projects under this 
     section are constructed and implemented.
       ``(4) Alaska native transportation commission.--
       ``(A) Establishment.--As soon as practicable after the date 
     of enactment of this subsection, the Secretary shall 
     establish a commission, to be known as the `Statewide Alaska 
     Native Transportation Commission', consisting of 1 
     representative selected from each Native authority designated 
     by the Secretary under paragraph (3)(A).
       ``(B) Duties.--The Commission shall--
       ``(i) allocate funds made available under this section 
     among regions in accordance with paragraph (5);
       ``(ii) coordinate transportation planning among the 
     regions, the State, and other governmental entities; and
       ``(iii) facilitate transportation projects involving 2 or 
     more regions.
       ``(5) Allocation of funding.--
       ``(A) Fiscal year 2004.--Funds made available for the 
     program for fiscal year 2004 shall be allocated to each 
     region by the Secretary as follows:
       ``(i) 50 percent of the funds shall be allocated based on 
     the proportion that--

       ``(I) the Native population of Native villages in the 
     region; bears to
       ``(II) the Native population of all Native villages in the 
     State.

       ``(ii) 50 percent of the funds shall be allocated as 
     equally as practicable among all Native villages in the 
     region.
       ``(B) Fiscal year 2005 and subsequent fiscal years.--Funds 
     made available for the program for fiscal year 2005 and each 
     fiscal year thereafter shall be allocated among regions by 
     the Commission, in accordance with a formula to be developed 
     by the Commission after taking into consideration--
       ``(i) the health, safety, and economic needs of each region 
     for transportation infrastructure, as identified through the 
     regional planning process;
       ``(ii) the relative costs of construction in each region; 
     and
       ``(iii) the extent to which transportation projects for 
     each region are ready to proceed to design and construction.
       ``(6) Tribal contracting.--Funds allocated among regions 
     under this subsection may be contracted or compacted in 
     accordance with the Indian Self Determination and Education 
     Assistance Act (25 U.S.C. 450b et seq.).
       ``(7) Matching funds.--Notwithstanding any other provision 
     of law, funds made available under this subsection may be 
     used to pay a matching share required for receipt of any 
     other Federal funds that would further a purpose for which 
     allocations under this section are made.
       ``(8) Maintenance.--
       ``(A) In general.--At the request of a Native authority or 
     Native village, the Secretary may increase an amount of funds 
     provided under this subsection for a construction project by 
     an additional amount equal to 100 percent of the total cost 
     of construction of the project, as determined by the 
     Secretary.
       ``(B) Use of retained funds.--An increase in funds provided 
     under subparagraph (A) for a construction project shall be 
     retained, and used only, for future maintenance of the 
     construction project.''.
       (f) Indian Reservation Road Safety Program.--
       (1) In general.--Chapter 4 of title 23, United States Code, 
     is amended by adding at the end the following:

     ``SEC. 412. INDIAN RESERVATION ROAD SAFETY PROGRAM.

       ``(a) Program.--
       ``(1) In general.--The Secretary shall carry out a program 
     to provide to eligible Indian tribes (as determined by the 
     Secretary) competitive grants for use in establishing tribal 
     transportation safety programs on--
       ``(A) Indian reservations; and
       ``(B) other land under the jurisdiction of an Indian tribe.
       ``(2) Use of funds.--Funds from a grant provided under 
     paragraph (1) may be used to carry out a project or 
     activity--
       ``(A) to prevent the operation of motor vehicles by 
     intoxicated individuals;
       ``(B) to promote increased seat belt use rates;
       ``(C) to eliminate hazardous locations and conditions on, 
     or hazardous sections or elements of--
       ``(i) a public road;
       ``(ii) a public surface transportation facility;
       ``(iii) a publicly-owned bicycle or pedestrian pathway or 
     trail; or
       ``(iv) a traffic calming measure;
       ``(D) to eliminate hazards relating to railway-highway 
     crossings; or
       ``(E) to increase transportation safety by any other means, 
     as determined by the Secretary.
       ``(b) Federal Share.--The Federal share of the cost of 
     carrying out the program under this section shall be 100 
     percent.
       ``(c) Funding.--Notwithstanding any other provision of law, 
     there are authorized to be appropriated from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this section--
       ``(1) $6,000,000 for each of fiscal years 2004 and 2005; 
     and
       ``(2) $9,000,000 for each of fiscal years 2006 through 
     2009.''.
       (2) Conforming amendment.--The analysis for chapter 4 of 
     title 23, United States Code, is amended by inserting after 
     the item relating to section 411 the following:

``412. Indian reservation road safety program.''.

       (g) Indian Reservation Rural Transit Program.--Section 5311 
     of title 49, United

[[Page S1034]]

     States Code, is amended by adding at the end the following:
       ``(k) Indian Reservation Rural Transit Program.--
       ``(1) In general.--The Secretary shall establish and carry 
     out a program to provide competitive grants to Indian tribes 
     to establish rural transit programs on reservations or other 
     land under the jurisdiction of the Indian tribes.
       ``(2) Amount of grants.--The amount of a grant provided to 
     an Indian tribe under subparagraph (A) shall be based on the 
     need of the Indian tribe, as determined by the Secretary of 
     Transportation.
       ``(3) Authorization of funding.--For each of fiscal years 
     2004 through 2009, of the amount made available under section 
     5338, $15,000,000 shall be made available to carry out this 
     subsection.''.
       (h) Commercial Vehicle Driving Training Program.--
       (1) Definitions.--In this section:
       (A) Commercial vehicle driving.--The term ``commercial 
     vehicle driving'' means the driving of--
       (i) a vehicle that is a tractor-trailer truck; or
       (ii) any other vehicle (such as a bus or a vehicle used for 
     the purpose of construction) the driving of which requires a 
     commercial license.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
       (2) Grants.--The Secretary shall provide grants, on a 
     competitive basis, to entities described in paragraph (3)(A) 
     to support programs providing training and certificates 
     leading to the licensing of Native Americans with respect to 
     commercial vehicle driving.
       (3) Eligibility.--To be eligible to receive a grant under 
     paragraph (1), an entity shall--
       (A) be a tribal college or university (as defined in 
     section 316(b)(3) of the Higher Education Act (20 U.S.C. 
     1059(b)(3)); and
       (B) prepare and submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       (4) Priority.--In providing grants under paragraph (1), the 
     Secretary shall give priority to grant applications that--
       (A) propose training that exceeds proposed minimum 
     standards for training tractor-trailer drivers of the 
     Department of Transportation;
       (B) propose training that exceeds the entry level truck 
     driver certification standards set by the Professional Truck 
     Driver Institute; and
       (C) propose an education partnership with a private 
     trucking firm, trucking association, or similar entity in 
     order to ensure the effectiveness of the grant program under 
     this section.
       (5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for the period of fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2315. Mr. KYL submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike title V and insert the following:

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

     SEC. 5000. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This title may be cited as the ``Highway 
     Reauthorization and Excise Tax Simplification Act of 2004''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

                 Subtitle A--Trust Fund Reauthorization

     SEC. 5101. EXTENSION OF AUTHORIZATION FOR USE OF TRUST FUNDS 
                   FOR OBLIGATIONS UNDER TEA-21.

       (a) Highway Trust Fund.--
       (1) In general.--Paragraph (1) of section 9503(c) is 
     amended--
       (A) in the matter before subparagraph (A), by striking 
     ``2004'' and inserting ``2005'',
       (B) by striking ``or'' at the end of subparagraph (E),
       (C) by striking the period at the end of subparagraph (F) 
     and inserting ``, or'',
       (D) by inserting after subparagraph (F), the following new 
     subparagraph:
       ``(G) authorized to be paid out of the Highway Trust Fund 
     under the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004.'', and
       (E) in the matter after subparagraph (G), as added by 
     subparagraph (D), by striking ``Surface Transportation 
     Extension Act of 2003'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004''.
       (2) Mass transit account.--Paragraph (3) of section 9503(e) 
     is amended--
       (A) in the matter before subparagraph (A), by striking 
     ``2004'' and inserting ``2005'',
       (B) by striking ``or'' at the end of subparagraph (C),
       (C) by striking the period at the end of subparagraph (D) 
     and inserting ``, or'',
       (D) by inserting after subparagraph (D), the following new 
     subparagraph:
       ``(E) the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004,'', and
       (E) in the matter after subparagraph (E), as added by 
     subparagraph (D), by striking ``Surface Transportation 
     Extension Act of 2003'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004''.
       (3) Exception to limitation on transfers.--Subparagraph (B) 
     of section 9503(b)(5) is amended by striking ``2004'' and 
     inserting ``2005''.
       (b) Aquatic Resources Trust Fund.--
       (1) Sport fish restoration account.--Paragraph (2) of 
     section 9504(b) (relating to Sport Fish Restoration Account) 
     is amended by striking ``Surface Transportation Extension Act 
     of 2003'' each place it appears and inserting ``Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2004''.
       (2) Boat safety account.--Section 9504(c) (relating to 
     expenditures from Boat Safety Account) is amended--
       (A) by striking ``2004'' and inserting ``2005'', and
       (B) by striking ``Surface Transportation Extension Act of 
     2003'' and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2004''.
       (3) Exception to limitation on transfers.--Paragraph (2) of 
     section 9504(d) (relating to limitation on transfers to 
     Aquatic Resources Trust Fund) is amended by striking ``2004'' 
     and inserting ``2005''.
       (4) Technical correction.--The last sentence of paragraph 
     (2) of section 9504(b) is amended by striking ``subparagraph 
     (B)'', and inserting ``subparagraph (C)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
       (d) Temporary Rule Regarding Adjustments.--During the 
     period beginning on the date of the enactment of this Act and 
     ending on February 28, 2005, for purposes of making any 
     estimate under section 9503(d) of the Internal Revenue Code 
     of 1986 of receipts of the Highway Trust Fund, the Secretary 
     of the Treasury shall treat--
       (1) each expiring provision of paragraphs (1) through (4) 
     of section 9503(b) of such Code which is related to 
     appropriations or transfers to such Fund to have been 
     extended through the end of the 24-month period referred to 
     in section 9503(d)(1)(B) of such Code, and
       (2) with respect to each tax imposed under the sections 
     referred to in section 9503(b)(1) of such Code, the rate of 
     such tax during the 24-month period referred to in section 
     9503(d)(1)(B) of such Code to be the same as the rate of such 
     tax as in effect on the date of the enactment of this Act.

     SEC. 5102. TRANSFER OF CERTAIN ETHANOL TAXES INTO THE HIGHWAY 
                   TRUST FUND.

       (a) In General.--Section 9503(b)(4) is amended--
       (1) by adding ``or'' at the end of subparagraph (C),
       (2) by striking the comma at the end of subparagraph 
     (D)(iii) and inserting a period, and
       (3) by striking subparagraphs (E) and (F).
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after September 30, 2003.

     SEC. 5103. DEDICATION OF GAS GUZZLER TAX TO HIGHWAY TRUST 
                   FUND.

       (a) In General.--Section 9503(b)(1) (relating to transfer 
     to Highway Trust Fund of amounts equivalent to certain taxes) 
     is amended by redesignating subparagraphs (C), (D), and (E) 
     as subparagraphs (D), (E), and (F), respectively, and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) section 4064 (relating to gas guzzler tax),''.
       (b) Uniform Application of Tax.--Subparagraph (A) of 
     section 4064(b)(1) (defining automobile) is amended by 
     striking the second sentence.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5104. INTEREST ON UNEXPENDED BALANCES CREDITED TO TRUST 
                   FUND.

       (a) In General.--Section 9503 (relating to the Highway 
     Trust Fund) is amended by striking subsection (f).
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

                   Subtitle B--Fuel Fraud Prevention

     SEC. 5200. SHORT TITLE.

       This subtitle may be cited as the ``Fuel Fraud Prevention 
     Act of 2004''.

                       PART I--AVIATION JET FUEL

     SEC. 5211. TAXATION OF AVIATION-GRADE KEROSENE.

       (a) Rate of Tax.--
       (1) In general.--Subparagraph (A) of section 4081(a)(2) is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) in the case of aviation-grade kerosene, 21.8 cents 
     per gallon.''.
       (2) Commercial aviation.--Paragraph (2) of section 4081(a) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) Taxes imposed on fuel used in commercial aviation.--
     In the case of aviation-grade kerosene which is removed from 
     any refinery or terminal directly into the fuel tank of an 
     aircraft for use in commercial aviation, the rate of tax 
     under subparagraph (A)(iv) shall be 4.3 cents per gallon.''.

[[Page S1035]]

       (3) Nontaxable uses.--
       (A) In general.--Section 4082 is amended by redesignating 
     subsections (e) and (f) as subsections (f) and (g), 
     respectively, and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Aviation-Grade Kerosene.--In the case of aviation-
     grade kerosene which is exempt from the tax imposed by 
     section 4041(c) (other than by reason of a prior imposition 
     of tax) and which is removed from any refinery or terminal 
     directly into the fuel tank of an aircraft, the rate of tax 
     under section 4081(a)(2)(A)(iv) shall be zero.''.
       (B) Conforming amendments.--
       (i) Subsection (b) of section 4082 is amended by adding at 
     the end the following new flush sentence: ``The term 
     `nontaxable use' does not include the use of aviation-grade 
     kerosene in an aircraft.''.
       (ii) Section 4082(d) is amended by striking paragraph (1) 
     and by redesignating paragraphs (2) and (3) as paragraphs (1) 
     and (2), respectively.
       (4) Nonaircraft use of aviation-grade kerosene.--
       (A) In general.--Subparagraph (B) of section 4041(a)(1) is 
     amended by adding at the end the following new sentence: 
     ``This subparagraph shall not apply to aviation-grade 
     kerosene.''.
       (B) Conforming amendment.--The heading for paragraph (1) of 
     section 4041(a) is amended by inserting ``and kerosene'' 
     after ``diesel fuel''.
       (b) Commercial Aviation.--Section 4083 is amended 
     redesignating subsections (b) and (c) as subsections (c) and 
     (d), respectively, and by inserting after subsection (a) the 
     following new subsection:
       ``(b) Commercial Aviation.--For purposes of this subpart, 
     the term `commercial aviation' means any use of an aircraft 
     in a business of transporting persons or property for 
     compensation or hire by air, unless properly allocable to any 
     transportation exempt from the taxes imposed by section 4261 
     and 4271 by reason of section 4281 or 4282 or by reason of 
     section 4261(h).''.
       (c) Refunds.--
       (1) In general.--Paragraph (4) of section 6427(l) is 
     amended to read as follows:
       ``(4) Refunds for aviation-grade kerosene.--
       ``(A) No refund of certain taxes on fuel used in commercial 
     aviation.--In the case of aviation-grade kerosene used in 
     commercial aviation (as defined in section 4083(b)) (other 
     than supplies for vessels or aircraft within the meaning of 
     section 4221(d)(3)), paragraph (1) shall not apply to so much 
     of the tax imposed by section 4081 as is attributable to--
       ``(i) the Leaking Underground Storage Tank Trust Fund 
     financing rate imposed by such section, and
       ``(ii) so much of the rate of tax specified in section 
     4081(a)(2)(A)(iv) as does not exceed 4.3 cents per gallon.
       ``(B) Payment to ultimate, registered vendor.--With respect 
     to aviation-grade kerosene, if the ultimate purchaser of such 
     kerosene waives (at such time and in such form and manner as 
     the Secretary shall prescribe) the right to payment under 
     paragraph (1) and assigns such right to the ultimate vendor, 
     then the Secretary shall pay the amount which would be paid 
     under paragraph (1) to such ultimate vendor, but only if such 
     ultimate vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.
       (2) Time for filing claims.--Paragraph (4) of section 
     6427(i) is amended by striking ``subsection (l)(5)'' and 
     inserting ``paragraph (4)(B) or (5) of subsection (l)''.
       (3) Conforming amendment.--Subparagraph (B) of section 
     6427(l)(2) is amended to read as follows:
       ``(B) in the case of aviation-grade kerosene--
       ``(i) any use which is exempt from the tax imposed by 
     section 4041(c) other than by reason of a prior imposition of 
     tax, or
       ``(ii) any use in commercial aviation (within the meaning 
     of section 4083(b)).''.
       (d) Repeal of Prior Taxation of Aviation Fuel.--
       (1) In general.--Part III of subchapter A of chapter 32 is 
     amended by striking subpart B and by redesignating subpart C 
     as subpart B.
       (2) Conforming amendments.--
       (A) Section 4041(c) is amended to read as follows:
       ``(c) Aviation-Grade Kerosene.--
       ``(1) In general.--There is hereby imposed a tax upon 
     aviation-grade kerosene--
       ``(A) sold by any person to an owner, lessee, or other 
     operator of an aircraft for use in such aircraft, or
       ``(B) used by any person in an aircraft unless there was a 
     taxable sale of such fuel under subparagraph (A).
       ``(2) Exemption for previously taxed fuel.--No tax shall be 
     imposed by this subsection on the sale or use of any 
     aviation-grade kerosene if tax was imposed on such liquid 
     under section 4081 and the tax thereon was not credited or 
     refunded.
       ``(3) Rate of tax.--The rate of tax imposed by this 
     subsection shall be the rate of tax specified in section 
     4081(a)(2)(A)(iv) which is in effect at the time of such sale 
     or use.''.
       (B) Section 4041(d)(2) is amended by striking ``section 
     4091'' and inserting ``section 4081''.
       (C) Section 4041 is amended by striking subsection (e).
       (D) Section 4041 is amended by striking subsection (i).
       (E) Section 4041(m)(1) is amended to read as follows:
       ``(1) In general.--In the case of the sale or use of any 
     partially exempt methanol or ethanol fuel, the rate of the 
     tax imposed by subsection (a)(2) shall be--
       ``(A) after September 30, 1997, and before September 30, 
     2009--
       ``(i) in the case of fuel none of the alcohol in which 
     consists of ethanol, 9.15 cents per gallon, and
       ``(ii) in any other case, 11.3 cents per gallon, and
       ``(B) after September 30, 2009--
       ``(i) in the case of fuel none of the alcohol in which 
     consists of ethanol, 2.15 cents per gallon, and
       ``(ii) in any other case, 4.3 cents per gallon.''.
       (F) Sections 4101(a), 4103, 4221(a), and 6206 are each 
     amended by striking ``, 4081, or 4091'' and inserting ``or 
     4081''.
       (G) Section 6416(b)(2) is amended by striking ``4091 or''.
       (H) Section 6416(b)(3) is amended by striking ``or 4091'' 
     each place it appears.
       (I) Section 6416(d) is amended by striking ``or to the tax 
     imposed by section 4091 in the case of refunds described in 
     section 4091(d)''.
       (J) Section 6427(j)(1) is amended by striking ``, 4081, and 
     4091'' and inserting ``and 4081''.
       (K)(i) Section 6427(l)(1) is amended to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     subsection and in subsection (k), if any diesel fuel or 
     kerosene on which tax has been imposed by section 4041 or 
     4081 is used by any person in a nontaxable use, the Secretary 
     shall pay (without interest) to the ultimate purchaser of 
     such fuel an amount equal to the aggregate amount of tax 
     imposed on such fuel under section 4041 or 4081, as the case 
     may be, reduced by any refund paid to the ultimate vendor 
     under paragraph (4)(B).''.
       (ii) Paragraph (5)(B) of section 6427(l) is amended by 
     striking ``Paragraph (1)(A) shall not apply to kerosene'' and 
     inserting ``Paragraph (1) shall not apply to kerosene (other 
     than aviation-grade kerosene)''.
       (L) Subparagraph (B) of section 6724(d)(1) is amended by 
     striking clause (xv) and by redesignating the succeeding 
     clauses accordingly.
       (M) Paragraph (2) of section 6724(d) is amended by striking 
     subparagraph (W) and by redesignating the succeeding 
     subparagraphs accordingly.
       (N) Paragraph (1) of section 9502(b) is amended by adding 
     ``and'' at the end of subparagraph (B) and by striking 
     subparagraphs (C) and (D) and inserting the following new 
     subparagraph:
       ``(C) section 4081 with respect to aviation gasoline and 
     aviation-grade kerosene, and''.
       (O) The last sentence of section 9502(b) is amended to read 
     as follows:

     ``There shall not be taken into account under paragraph (1) 
     so much of the taxes imposed by section 4081 as are 
     determined at the rate specified in section 4081(a)(2)(B).''.
       (P) Subsection (b) of section 9508 is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) and (5) as 
     paragraphs (3) and (4), respectively.
       (Q) Section 9508(c)(2)(A) is amended by striking ``sections 
     4081 and 4091'' and inserting ``section 4081''.
       (R) The table of subparts for part III of subchapter A of 
     chapter 32 is amended to read as follows:

``Subpart A. Motor and aviation fuels.
``Subpart B. Special provisions applicable to fuels tax.''

     .  (S) The heading for subpart A of part III of subchapter A 
     of chapter 32 is amended to read as follows:

                ``Subpart A--Motor and Aviation Fuels''.

       (T) The heading for subpart B of part III of subchapter A 
     of chapter 32 is amended to read as follows:

       ``Subpart B--Special Provisions Applicable to Fuels Tax''.

       (g) Other Amendments.--
       (1) Section 4081(c) is amended by adding at the end the 
     following new flush sentence:
     ``In the case of any taxable fuel which is aviation-grade 
     kerosene, this subsection shall not apply and the rules of 
     section 4091(c) (as in effect on the day before the date of 
     the enactment of the Fuel Fraud Prevention Act of 2004) shall 
     apply.''.
       (2) For purposes of the Internal Revenue Code of 1986, any 
     reference to section 4091(c) shall be treated as a reference 
     to the rules of such section as in effect on the date before 
     the date of the enactment of this Act.
       (f) Effective Date.--The amendments made by this section 
     shall apply to aviation-grade kerosene removed, entered, or 
     sold after September 30, 2004.
       (g) Floor Stocks Tax.--
       (1) In general.--There is hereby imposed on aviation-grade 
     kerosene held on October 1, 2004, by any person a tax equal 
     to--
       (A) the tax which would have been imposed before such date 
     on such kerosene had the amendments made by this section been 
     in effect at all times before such date, reduced by
       (B) the tax imposed before such date under section 4091 of 
     the Internal Revenue Code of 1986, as in effect on the day 
     before the date of the enactment of this Act.
       (2) Liability for tax and method of payment.--
       (A) Liability for tax.--The person holding the kerosene on 
     October 1, 2004, to which the tax imposed by paragraph (1) 
     applies shall be liable for such tax.

[[Page S1036]]

       (B) Method and time for payment.--The tax imposed by 
     paragraph (1) shall be paid at such time and in such manner 
     as the Secretary of the Treasury shall prescribe, including 
     the nonapplication of such tax on de minimis amounts of 
     kerosene.
       (3) Transfer of floor stock tax revenues to trust funds.--
     For purposes of determining the amount transferred to any 
     trust fund, the tax imposed by this subsection shall be 
     treated as imposed by section 4081 of the Internal Revenue 
     Code of 1986--
       (A) at the Leaking Underground Storage Tank Trust Fund 
     financing rate under such section to the extent of 0.1 cents 
     per gallon, and
       (B) at the rate under section 4081(a)(2)(A)(iv) to the 
     extent of the remainder.
       (4) Held by a person.--For purposes of this section, 
     kerosene shall be considered as held by a person if title 
     thereto has passed to such person (whether or not delivery to 
     the person has been made).
       (5) Other laws applicable.--All provisions of law, 
     including penalties, applicable with respect to the tax 
     imposed by section 4081 of such Code shall, insofar as 
     applicable and not inconsistent with the provisions of this 
     subsection, apply with respect to the floor stock tax imposed 
     by paragraph (1) to the same extent as if such tax were 
     imposed by such section.

     SEC. 5212. TRANSFER OF CERTAIN AMOUNTS FROM THE AIRPORT AND 
                   AIRWAY TRUST FUND TO THE HIGHWAY TRUST FUND TO 
                   REFLECT HIGHWAY USE OF JET FUEL.

       (a) In General.--Section 9502(d) is amended by adding at 
     the end the following new paragraph:
       ``(7) Transfers from the trust fund to the highway trust 
     fund to reflect highway use of jet fuel.--
       ``(A) In general.--The Secretary shall pay from the Airport 
     and Airway Trust Fund into the Highway Trust Fund--
       ``(i) $395,000,000 in fiscal year 2005,
       ``(ii) $425,000,000 in fiscal year 2006,
       ``(iii) $429,000,000 in fiscal year 2007,
       ``(iv) $432,000,000 in fiscal year 2008, and
       ``(v) $435,000,000 in fiscal year 2009.
       ``(B) Amounts transferred to mass transit account.--The 
     Secretary shall transfer 11 percent of the amounts paid into 
     the Highway Trust Fund under subparagraph (A) to the Mass 
     Transit Account established under section 9503(e).''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 9503 is amended--
       (A) by striking ``appropriated or credited'' and inserting 
     ``paid, appropriated, or credited'', and
       (B) by striking ``or section 9602(b)'' and inserting ``, 
     section 9502(d)(7), or section 9602(b)''.
       (2) Subsection (e)(1) of section 9503 is amended by 
     striking ``or section 9602(b)'' and inserting ``, section 
     9502(d)(7), or section 9602(b)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                           PART II--DYED FUEL

     SEC. 5221. DYE INJECTION EQUIPMENT.

       (a) In General.--Section 4082(a)(2) (relating to exemptions 
     for diesel fuel and kerosene) is amended by inserting ``by 
     mechanical injection'' after ``indelibly dyed''.
       (b) Dye Injector Security.--Not later than June 30, 2004, 
     the Secretary of the Treasury shall issue regulations 
     regarding mechanical dye injection systems described in the 
     amendment made by subsection (a), and such regulations shall 
     include standards for making such systems tamper resistant.
       (c) Penalty for Tampering With or Failing To Maintain 
     Security Requirements for Mechanical Dye Injection Systems.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding after 
     section 6715 the following new section:

     ``SEC. 6715A. TAMPERING WITH OR FAILING TO MAINTAIN SECURITY 
                   REQUIREMENTS FOR MECHANICAL DYE INJECTION 
                   SYSTEMS.

       ``(a) Imposition of Penalty--
       ``(1) Tampering.--If any person tampers with a mechanical 
     dye injection system used to indelibly dye fuel for purposes 
     of section 4082, then such person shall pay a penalty in 
     addition to the tax (if any).
       ``(2) Failure to maintain security requirements.--If any 
     operator of a mechanical dye injection system used to 
     indelibly dye fuel for purposes of section 4082 fails to 
     maintain the security standards for such system as 
     established by the Secretary, then such operator shall pay a 
     penalty.
       ``(b) Amount of Penalty.--The amount of the penalty under 
     subsection (a) shall be--
       ``(1) for each violation described in paragraph (1), the 
     greater of--
       ``(A) $25,000, or
       ``(B) $10 for each gallon of fuel involved, and
       ``(2) for each--
       ``(A) failure to maintain security standards described in 
     paragraph (2), $1,000, and
       ``(B) failure to correct a violation described in paragraph 
     (2), $1,000 per day for each day after which such violation 
     was discovered or such person should have reasonably known of 
     such violation.
       ``(c) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by adding after the 
     item related to section 6715 the following new item:

``Sec. 6715A. Tampering with or failing to maintain security 
              requirements for mechanical dye injection systems.''.

       (d) Effective Date.--The amendments made by subsections (a) 
     and (c) shall take effect 180 days after the date on which 
     the Secretary issues the regulations described in subsection 
     (b).

     SEC. 5222. ELIMINATION OF ADMINISTRATIVE REVIEW FOR TAXABLE 
                   USE OF DYED FUEL.

       (a) In General.--Section 6715 is amended by inserting at 
     the end the following new subsection:
       ``(e) No Administrative Appeal for Third and Subsequent 
     Violations.--In the case of any person who is found to be 
     subject to the penalty under this section after a chemical 
     analysis of such fuel and who has been penalized under this 
     section at least twice after the date of the enactment of 
     this subsection, no administrative appeal or review shall be 
     allowed with respect to such finding except in the case of a 
     claim regarding--
       ``(1) fraud or mistake in the chemical analysis, or
       ``(2) mathematical calculation of the amount of the 
     penalty.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after the date of the 
     enactment of this Act.

     SEC. 5223. PENALTY ON UNTAXED CHEMICALLY ALTERED DYED FUEL 
                   MIXTURES.

       (a) In General.--Section 6715(a) (relating to dyed fuel 
     sold for use or used in taxable use, etc.) is amended by 
     striking ``or'' in paragraph (2), by inserting ``or'' at the 
     end of paragraph (3), and by inserting after paragraph (3) 
     the following new paragraph:
       ``(4) any person who has knowledge that a dyed fuel which 
     has been altered as described in paragraph (3) sells or holds 
     for sale such fuel for any use which the person knows or has 
     reason to know is not a nontaxable use of such fuel,''.
       (b) Conforming Amendment.--Section 6715(a)(3) is amended by 
     striking ``alters, or attempts to alter,'' and inserting 
     ``alters, chemically or otherwise, or attempts to so 
     alter,''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5224. TERMINATION OF DYED DIESEL USE BY INTERCITY BUSES.

       (a) In General.--Paragraph (3) of section 4082(b) (relating 
     to nontaxable use) is amended to read as follows:
       ``(3) any use described in section 
     4041(a)(1)(C)(iii)(II).''.
       (b) Ultimate Vendor Refund.--Subsection (b) of section 6427 
     is amended by adding at the end the following new paragraph:
       ``(4) Refunds for use of diesel fuel in certain intercity 
     buses.--
       ``(A) In general.--With respect to any fuel to which 
     paragraph (2)(A) applies, if the ultimate purchaser of such 
     fuel waives (at such time and in such form and manner as the 
     Secretary shall prescribe) the right to payment under 
     paragraph (1) and assigns such right to the ultimate vendor, 
     then the Secretary shall pay the amount which would be paid 
     under paragraph (1) to such ultimate vendor, but only if such 
     ultimate vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).
       ``(B) Credit cards.--For purposes of this paragraph, if the 
     sale of such fuel is made by means of a credit card, the 
     person extending credit to the ultimate purchaser shall be 
     deemed to be the ultimate vendor.''.
       (c) Payment of Refunds.--Subparagraph (A) of section 
     6427(i)(4), as amended by section 5211 of this Act, is 
     amended by inserting ``subsections (b)(4) and'' after ``filed 
     under''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel sold after September 30, 2004.

       PART III--MODIFICATION OF INSPECTION OF RECORDS PROVISIONS

     SEC. 5231. AUTHORITY TO INSPECT ON-SITE RECORDS.

       (a) In General.--Section 4083(d)(1)(A) (relating to 
     administrative authority), as amended by section 5211 of this 
     Act, is amended by striking ``and'' at the end of clause (i) 
     and by inserting after clause (ii) the following new clause:
       ``(iii) inspecting any books and records and any shipping 
     papers pertaining to such fuel, and''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5232. ASSESSABLE PENALTY FOR REFUSAL OF ENTRY.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5221 of this Act, is amended by adding at the end the 
     following new section:

[[Page S1037]]

     ``SEC. 6717. REFUSAL OF ENTRY.

       ``(a) In General.--In addition to any other penalty 
     provided by law, any person who refuses to admit entry or 
     refuses to permit any other action by the Secretary 
     authorized by section 4083(d)(1) shall pay a penalty of 
     $1,000 for such refusal.
       ``(b) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (b) Conforming Amendments.--
       (1) Section 4083(d)(3), as amended by section 5211 of this 
     Act, is amended--
       (A) by striking ``entry.--The penalty'' and inserting: 
     ``entry.--
       ``(A) Forfeiture.--The penalty'', and
       (B) by adding at the end the following new subparagraph:
       ``(B) Assessable penalty.--For additional assessable 
     penalty for the refusal to admit entry or other refusal to 
     permit an action by the Secretary authorized by paragraph 
     (1), see section 6717.''.
       (2) The table of sections for part I of subchapter B of 
     chapter 68, as amended by section 5221 of this Act, is 
     amended by adding at the end the following new item:

``Sec. 6717. Refusal of entry.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

            PART IV--REGISTRATION AND REPORTING REQUIREMENTS

     SEC. 5241. REGISTRATION OF PIPELINE OR VESSEL OPERATORS 
                   REQUIRED FOR EXEMPTION OF BULK TRANSFERS TO 
                   REGISTERED TERMINALS OR REFINERIES.

       (a) In General.--Section 4081(a)(1)(B) (relating to 
     exemption for bulk transfers to registered terminals or 
     refineries) is amended--
       (1) by inserting ``by pipeline or vessel'' after 
     ``transferred in bulk'', and
       (2) by inserting ``, the operator of such pipeline or 
     vessel,'' after ``the taxable fuel''.
       (b) Civil Penalty for Carrying Taxable Fuels by 
     Nonregistered Pipelines or Vessels.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5232 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6718. CARRYING TAXABLE FUELS BY NONREGISTERED 
                   PIPELINES OR VESSELS.

       ``(a) Imposition of Penalty.--If any person knowingly 
     transfers any taxable fuel (as defined in section 4083(a)(1)) 
     in bulk pursuant to section 4081(a)(1)(B) to an unregistered, 
     such person shall pay a penalty in addition to the tax (if 
     any).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amount of the penalty under subsection (a) on each act shall 
     be an amount equal to the greater of--
       ``(A) $10,000, or
       ``(B) $1 per gallon.
       ``(2) Multiple violations.--In determining the penalty 
     under subsection (a) on any person, paragraph (1) shall be 
     applied by increasing the amount in paragraph (1) by the 
     product of such amount and the number of prior penalties (if 
     any) imposed by this section on such person (or a related 
     person or any predecessor of such person or related person).
       ``(c) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.
       ``(d) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5232 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6718. Carrying taxable fuels by nonregistered pipelines or 
              vessels.''.

       (c) Publication of Registered Persons.--Not later than June 
     30, 2004, the Secretary of the Treasury shall publish a list 
     of persons required to be registered under section 4101 of 
     the Internal Revenue Code of 1986.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2004.

     SEC. 5242. DISPLAY OF REGISTRATION.

       (a) In General.--Subsection (a) of section 4101 (relating 
     to registration) is amended--
       (1) by striking ``Every'' and inserting the following:
       ``(1) In general.--Every'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Display of registration.--Every operator of a vessel 
     required by the Secretary to register under this section 
     shall display proof of registration through an electronic 
     identification device prescribed by the Secretary on each 
     vessel used by such operator to transport any taxable 
     fuel.''.
       (b) Civil Penalty for Failure to Display Registration.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5241 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6719. FAILURE TO DISPLAY REGISTRATION OF VESSEL.

       ``(a) Failure to Display Registration.--Every operator of a 
     vessel who fails to display proof of registration pursuant to 
     section 4101(a)(2) shall pay a penalty of $500 for each such 
     failure. With respect to any vessel, only one penalty shall 
     be imposed by this section during any calendar month.
       ``(b) Multiple Violations.--In determining the penalty 
     under subsection (a) on any person, subsection (a) shall be 
     applied by increasing the amount in subsection (a) by the 
     product of such amount and the number of prior penalties (if 
     any) imposed by this section on such person (or a related 
     person or any predecessor of such person or related person).
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5241 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6719. Failure to display registration of vessel.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5243. REGISTRATION OF PERSONS WITHIN FOREIGN TRADE 
                   ZONES, ETC..

       (a) In General.--Section 4101(a), as amended by section 
     5242 of this Act, is amended by redesignating paragraph (2) 
     as paragraph (3), and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Registration of persons within foreign trade zones, 
     etc..--The Secretary shall require registration by any person 
     which--
       ``(A) operates a terminal or refinery within a foreign 
     trade zone or within a customs bonded storage facility, or
       ``(B) holds an inventory position with respect to a taxable 
     fuel in such a terminal.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5244. PENALTIES FOR FAILURE TO REGISTER AND FAILURE TO 
                   REPORT.

       (a) Increased Penalty.--Subsection (a) of section 7272 
     (relating to penalty for failure to register) is amended by 
     inserting ``($10,000 in the case of a failure to register 
     under section 4101)'' after ``$50''.
       (b) Increased Criminal Penalty.--Section 7232 (relating to 
     failure to register under section 4101, false representations 
     of registration status, etc.) is amended by striking 
     ``$5,000'' and inserting ``$10,000''.
       (c) Assessable Penalty for Failure to Register.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5242 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6720. FAILURE TO REGISTER.

       ``(a) Failure to Register.--Every person who is required to 
     register under section 4101 and fails to do so shall pay a 
     penalty in addition to the tax (if any).
       ``(b) Amount of Penalty.--The amount of the penalty under 
     subsection (a) shall be--
       ``(1) $10,000 for each initial failure to register, and
       ``(2) $1,000 for each day thereafter such person fails to 
     register.
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5242 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6720. Failure to register.''.

       (d) Assessable Penalty for Failure to Report.--
       (1) In general.--Part II of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding at 
     the end the following new section:

     ``SEC. 6725. FAILURE TO REPORT INFORMATION UNDER SECTION 
                   4101.

       ``(a) In General.--In the case of each failure described in 
     subsection (b) by any person with respect to a vessel or 
     facility, such person shall pay a penalty of $10,000 in 
     addition to the tax (if any).
       ``(b) Failures Subject to Penalty.--For purposes of 
     subsection (a), the failures described in this subsection 
     are--
       ``(1) any failure to make a report under section 4101(d) on 
     or before the date prescribed therefor, and
       ``(2) any failure to include all of the information 
     required to be shown on such report or the inclusion of 
     incorrect information.

[[Page S1038]]

       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part II 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6725. Failure to report information under section 4101.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to failures pending or occurring after September 
     30, 2004.

     SEC. 5245. INFORMATION REPORTING FOR PERSONS CLAIMING CERTAIN 
                   TAX BENEFITS.

       (a) In General.--Subpart C of part III of subchapter A of 
     chapter 32 is amended by adding at the end the following new 
     section:

     ``SEC. 4104. INFORMATION REPORTING FOR PERSONS CLAIMING 
                   CERTAIN TAX BENEFITS.

       ``(a) In General.--The Secretary shall require any person 
     claiming tax benefits--
       ``(1) under the provisions of section 34, 40, and 40A to 
     file a return at the time such person claims such benefits 
     (in such manner as the Secretary may prescribe), and
       ``(2) under the provisions of section 4041(b)(2), 6426, or 
     6427(e) to file a monthly return (in such manner as the 
     Secretary may prescribe).
       ``(b) Contents of Return.--Any return filed under this 
     section shall provide such information relating to such 
     benefits and the coordination of such benefits as the 
     Secretary may require to ensure the proper administration and 
     use of such benefits.
       ``(c) Enforcement.--With respect to any person described in 
     subsection (a) and subject to registration requirements under 
     this title, rules similar to rules of section 4222(c) shall 
     apply with respect to any requirement under this section.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 32 is 
     amended by adding at the end the following new item:

``Sec. 4104. Information reporting for persons claiming certain tax 
              benefits.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                            PART V--IMPORTS

     SEC. 5251. TAX AT POINT OF ENTRY WHERE IMPORTER NOT 
                   REGISTERED.

       (a) Tax at Point of Entry Where Importer Not Registered.--
       (1) In general.--Subpart C of part III of subchapter A of 
     chapter 31, as amended by section 5245 of this Act, is 
     amended by adding at the end the following new section:

     ``SEC. 4105. TAX AT ENTRY WHERE IMPORTER NOT REGISTERED.

       ``(a) In General.--Any tax imposed under this part on any 
     person not registered under section 4101 for the entry of a 
     fuel into the United States shall be imposed at the time and 
     point of entry.
       ``(b) Enforcement of Assessment.--If any person liable for 
     any tax described under subsection (a) has not paid the tax 
     or posted a bond, the Secretary may--
       ``(1) seize the fuel on which the tax is due, or
       ``(2) detain any vehicle transporting such fuel,
     until such tax is paid or such bond is filed.
       ``(c) Levy of Fuel.--If no tax has been paid or no bond has 
     been filed within 5 days from the date the Secretary seized 
     fuel pursuant to subsection (b), the Secretary may sell such 
     fuel as provided under section 6336.''.
       (2) Conforming amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 31 of the 
     Internal Revenue Code of 1986, as amended by section 5245 of 
     this Act, is amended by adding after the last item the 
     following new item:

``Sec. 4105. Tax at entry where importer not registered.''.

       (b) Denial of Entry Where Tax Not Paid.--The Secretary of 
     Homeland Security is authorized to deny entry into the United 
     States of any shipment of a fuel which is taxable under 
     section 4081 of the Internal Revenue Code of 1986 if the 
     person entering such shipment fails to pay the tax imposed 
     under such section or post a bond in accordance with the 
     provisions of section 4105 of such Code.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5252. RECONCILIATION OF ON-LOADED CARGO TO ENTERED 
                   CARGO.

       (a) In General.--Subsection (a) of section 343 of the Trade 
     Act of 2002 is amended by inserting at the end the following 
     new paragraph:
       ``(4) In General.--Subject to paragraphs (2) and (3), not 
     later than 1 year after the enactment of this paragraph, the 
     Secretary of Homeland Security, together with the Secretary 
     of the Treasury, shall promulgate regulations providing for 
     the transmission to the Internal Revenue Service, through an 
     electronic data interchange system, of information pertaining 
     to cargo of taxable fuels (as defined in section 4083 of the 
     Internal Revenue Code of 1986) destined for importation into 
     the United States prior to such importation.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

                   PART VI--MISCELLANEOUS PROVISIONS

     SEC. 5261. TAX ON SALE OF DIESEL FUEL WHETHER SUITABLE FOR 
                   USE OR NOT IN A DIESEL-POWERED VEHICLE OR 
                   TRAIN.

       (a) In General.--Section 4083(a)(3) is amended--
       (1) by striking ``The term'' and inserting the following:
       ``(A) In general.--The term'', and
       (2) by inserting at the end the following new subparagraph:
       ``(B) Liquid sold as diesel fuel.--The term `diesel fuel' 
     includes any liquid which is sold as or offered for sale as a 
     fuel in a diesel-powered highway vehicle or a diesel-powered 
     train.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5262. MODIFICATION OF ULTIMATE VENDOR REFUND CLAIMS WITH 
                   RESPECT TO FARMING.

       (a) In General.--
       (1) Refunds.--Section 6427(l) is amended by adding at the 
     end the following new paragraph:
       ``(6) Registered vendors permitted to administer certain 
     claims for refund of diesel fuel and kerosene sold to 
     farmers.--
       ``(A) In general.--In the case of diesel fuel or kerosene 
     used on a farm for farming purposes (within the meaning of 
     section 6420(c)), paragraph (1) shall not apply to the 
     aggregate amount of such diesel fuel or kerosene if such 
     amount does not exceed 500 gallons (as determined under 
     subsection (i)(5)(A)(iii)).
       ``(B) Payment to ultimate vendor.--The amount which would 
     (but for subparagraph (A)) have been paid under paragraph (1) 
     with respect to any fuel shall be paid to the ultimate vendor 
     of such fuel, if such vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.
       (2) Filing of claims.--Section 6427(i) is amended by 
     inserting at the end the following new paragraph:
       ``(5) Special rule for vendor refunds with respect to 
     farmers.--
       ``(A) In general.--A claim may be filed under subsection 
     (l)(6) by any person with respect to fuel sold by such person 
     for any period--
       ``(i) for which $200 or more ($100 or more in the case of 
     kerosene) is payable under subsection (l)(6),
       ``(ii) which is not less than 1 week, and
       ``(iii) which is for not more than 500 gallons for each 
     farmer for which there is a claim.
     Notwithstanding subsection (l)(1), paragraph (3)(B) shall 
     apply to claims filed under the preceding sentence.
       ``(B) Time for filing claim.--No claim filed under this 
     paragraph shall be allowed unless filed on or before the last 
     day of the first quarter following the earliest quarter 
     included in the claim.''.
       (3) Conforming amendments.--
       (A) Section 6427(l)(5)(A) is amended to read as follows:
       ``(A) In general.--Paragraph (1) shall not apply to diesel 
     fuel or kerosene used by a State or local government.''.
       (B) The heading for section 6427(l)(5) is amended by 
     striking ``farmers and''.
       (b) Section 6427(i)(3) is amended--
       (1) by adding at the end of subparagraph (A) the following 
     new flush sentence:
     ``In the case of an electronic claim, this subparagraph shall 
     be applied without regard to clause (i).'', and
       (2) by striking ``20 days of the date of the filing of such 
     claim'' in subparagraph (B) and inserting ``45 days of the 
     date of the filing of such claim (20 days in the case of an 
     electronic claim)'', and
       (c) Effective Date.--The amendment made by this section 
     shall apply to fuels sold for nontaxable use after the date 
     of the enactment of this Act.

     SEC. 5263. TAXABLE FUEL REFUNDS FOR CERTAIN ULTIMATE VENDORS.

       (a) In General.--Paragraph (4) of section 6416(a) (relating 
     to abatements, credits, and refunds) is amended to read as 
     follows:
       ``(4) Registered ultimate vendor to administer credits and 
     refunds of gasoline tax.--
       ``(A) In general.--For purposes of this subsection, if an 
     ultimate vendor purchases any gasoline on which tax imposed 
     by section 4081 has been paid and sells such gasoline to an 
     ultimate purchaser described in subparagraph (C) or (D) of 
     subsection (b)(2) (and such gasoline is for a use described 
     in such subparagraph), such ultimate vendor shall be treated 
     as the person (and the only person) who paid such tax, but 
     only if such ultimate vendor is registered under section 
     4101. For purposes of this subparagraph, if the sale of 
     gasoline is made by means of a credit card, the person 
     extending the credit to the ultimate purchaser shall be 
     deemed to be the ultimate vendor.
       ``(B) Timing of claims.--The procedure and timing of any 
     claim under subparagraph (A) shall be the same as for claims 
     under section 6427(i)(4), except that the rules of section 
     6427(i)(3)(B) regarding electronic claims shall not apply 
     unless the ultimate vendor has certified to the Secretary for 
     the most recent quarter of the taxable year that all ultimate 
     purchasers of the vendor are certified and entitled to a 
     refund under subparagraph (C) or (D) of subsection (b)(2).''.
       (b) Credit Card Purchases of Diesel Fuel or Kerosene by 
     State and Local Governments.--Section 6427(l)(5)(C) (relating 
     to nontaxable uses of diesel fuel, kerosene, and aviation 
     fuel), as amended by section 5252 of this Act, is amended by 
     adding at the end

[[Page S1039]]

     the following new sentence: ``For purposes of this 
     subparagraph, if the sale of diesel fuel or kerosene is made 
     by means of a credit card, the person extending the credit to 
     the ultimate purchaser shall be deemed to be the ultimate 
     vendor.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5264. TWO-PARTY EXCHANGES.

       (a) In General.--Subpart C of part III of subchapter A of 
     chapter 32, as amended by section 5251 of this Act, is 
     amended by adding at the end the following new section:

     ``SEC. 4106. TWO-PARTY EXCHANGES.

       ``(a) In General.--In a two-party exchange, the delivering 
     person shall not be liable for the tax imposed under of 
     section 4081(a)(1)(A)(ii).
       ``(b) Two-Party Exchange.--The term `two-party exchange' 
     means a transaction, other than a sale, in which taxable fuel 
     is transferred from a delivering person registered under 
     section 4101 as a taxable fuel registrant to a receiving 
     person who is so registered where all of the following occur:
       ``(1) The transaction includes a transfer from the 
     delivering person, who holds the inventory position for 
     taxable fuel in the terminal as reflected in the records of 
     the terminal operator.
       ``(2) The exchange transaction occurs before or 
     contemporaneous with completion of removal across the rack 
     from the terminal by the receiving person.
       ``(3) The terminal operator in its books and records treats 
     the receiving person as the person that removes the product 
     across the terminal rack for purposes of reporting the 
     transaction to the Secretary.
       ``(4) The transaction is the subject of a written 
     contract.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 32, as 
     amended by section 5251 of this Act, is amended by adding 
     after the last item the following new item:

``Sec. 4106. Two-party exchanges.''.

       (c) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5265. MODIFICATIONS OF TAX ON USE OF CERTAIN VEHICLES.

       (a) No Proration of Tax Unless Vehicle Is Destroyed or 
     Stolen.--
       (1) In general.--Section 4481(c) (relating to proration of 
     tax) is amended to read as follows:
       ``(c) Proration of Tax Where Vehicle Sold, Destroyed, or 
     Stolen.--
       ``(1) In general.--If in any taxable period a highway motor 
     vehicle is sold, destroyed, or stolen before the first day of 
     the last month in such period and not subsequently used 
     during such taxable period, the tax shall be reckoned 
     proportionately from the first day of the month in such 
     period in which the first use of such highway motor vehicle 
     occurs to and including the last day of the month in which 
     such highway motor vehicle was sold, destroyed, or stolen.
       ``(2) Destroyed.--For purposes of paragraph (1), a highway 
     motor vehicle is destroyed if such vehicle is damaged by 
     reason of an accident or other casualty to such an extent 
     that it is not economic to rebuild.''.
       (2) Conforming amendments.--
       (A) Section 6156 (relating to installment payment of tax on 
     use of highway motor vehicles) is repealed.
       (B) The table of sections for subchapter A of chapter 62 is 
     amended by striking the item relating to section 6156.
       (b) Display of Tax Certificate.--Paragraph (2) of section 
     4481(d) (relating to one tax liability for period) is amended 
     to read as follows:
       ``(2) Display of tax certificate.--Every taxpayer which 
     pays the tax imposed under this section with respect to a 
     highway motor vehicle shall, not later than 1 month after the 
     due date of the return of tax with respect to each taxable 
     period, receive and display on such vehicle an electronic 
     identification device prescribed by the Secretary.''.
       (c) Electronic filing.--Section 4481 is amended by 
     redesignating subsection (e) as subsection (f) and by 
     inserting after subsection (d) the following new subsection:
       ``(e) Electronic filing.--Any taxpayer who files a return 
     under this section with respect to 25 or more vehicles for 
     any taxable period shall file such return electronically.''.
       (d) Repeal of reduction in tax for certain trucks.--Section 
     4483 of the Internal Revenue Code of 1986 is amended by 
     striking subsection (f).
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable 
     periods beginning after the date of the enactment of this 
     Act.
       (2) Subsection (b).--The amendment made by subsection (b) 
     shall take effect on October 1, 2005.

     SEC. 5266. DEDICATION OF REVENUES FROM CERTAIN PENALTIES TO 
                   THE HIGHWAY TRUST FUND.

       (a) In General.--Subsection (b) of section 9503 (relating 
     to transfer to Highway Trust Fund of amounts equivalent to 
     certain taxes), as amended by section 5101 of this Act, is 
     amended by redesignating paragraph (5) as paragraph (6) and 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Certain penalties.--There are hereby appropriated to 
     the Highway Trust Fund amounts equivalent to the penalties 
     assessed under sections 6715, 6715A, 6717, 6718, 6719, 6720, 
     6725, 7232, and 7272 (but only with regard to penalties under 
     such section related to failure to register under section 
     4101).''.
       (b) Conforming Amendments.--
       (1) The heading of subsection (b) of section 9503 is 
     amended by inserting ``and Penalties'' after ``Taxes''.
       (2) The heading of paragraph (1) of section 9503(b) is 
     amended by striking ``In general'' and inserting ``Certain 
     taxes''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to penalties assessed after October 1, 2004.

     SEC. 5267. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF 
                   FUEL TO MOTOR VEHICLES REMOVED FROM UNITED 
                   STATES.

       (a) In General.--Section 4221(d)(2) (defining export) is 
     amended by adding at the end the following new sentence: 
     ``Such term does not include the delivery of a taxable fuel 
     (as defined in section 4083(a)(1)) into a fuel tank of a 
     motor vehicle which is shipped or driven out of the United 
     States.''.
       (b) Conforming Amendments.--
       (1) Section 4041(g) (relating to other exemptions) is 
     amended by adding at the end the following new sentence: 
     ``Paragraph (3) shall not apply to the sale for delivery of a 
     liquid into a fuel tank of a motor vehicle which is shipped 
     or driven out of the United States.''.
       (2) Clause (iv) of section 4081(a)(1)(A) (relating to tax 
     on removal, entry, or sale) is amended by inserting ``or at a 
     duty-free sales enterprise (as defined in section 555(b)(8) 
     of the Tariff Act of 1930)'' after ``section 4101''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales or deliveries made after the date of the 
     enactment of this Act.

                     PART VII--TOTAL ACCOUNTABILITY

     SEC. 5271. TOTAL ACCOUNTABILITY.

       (a) Taxation of Reportable Liquids.--
       (1) In general.--Section 4081(a), as amended by this Act, 
     is amended--
       (A) by inserting ``or reportable liquid'' after ``taxable 
     fuel'' each place it appears, and
       (B) by inserting ``such liquid'' after ``such fuel'' in 
     paragraph (1)(A)(iv).
       (2) Rate of tax.--Subparagraph (A) of section 4081(a)(2), 
     as amended by section 5211 of this Act, is amended by 
     striking ``and'' at the end of clause (iii), by striking the 
     period at the end of clause (iv) and inserting ``, and'', and 
     by adding at the end the following new clause:
       ``(v) in the case of reportable liquids, the rate 
     determined under section 4083(c)(2).''.
       (3) Exemption.--Section 4081(a)(1) is amended by adding at 
     the end the following new subparagraph:
       ``(C) Exemption for registered transfers of reportable 
     liquids.--The tax imposed by this paragraph shall not apply 
     to any removal, entry, or sale of a reportable liquid if--
       ``(i) such removal, entry, or sale is to a registered 
     person who certifies that such liquid will not be used as a 
     fuel or in the production of a fuel, or
       ``(ii) the sale is to the ultimate purchaser of such 
     liquid.''.
       (4) Reportable liquids.--Section 4083, as amended by this 
     Act, is amended by redesignating subsections (c) and (d) (as 
     redesignated by section 5211 of this Act) as subsections (d) 
     and (e), respectively, and by inserting after subsection (b) 
     the following new section:
       ``(c) Reportable liquid.--For purposes of this subpart--
       ``(1) In general.--The term `reportable liquid' means any 
     petroleum-based liquid other than a taxable fuel.
       ``(2) Taxation.--
       ``(A) Gasoline blend stocks and additives.--Gasoline blend 
     stocks and additives which are reportable liquids (as defined 
     in paragraph (1)) shall be subject to the rate of tax under 
     clause (i) of section 4081(a)(2)(A).
       ``(B) Other reportable liquids.--Any reportable liquid (as 
     defined in paragraph (1)) not described in subparagraph (A) 
     shall be subject to the rate of tax under clause (iii) of 
     section 4081(a)(2)(A).''.
       (5) Conforming amendments.--
       (A) Section 4081(e) is amended by inserting ``or reportable 
     liquid'' after ``taxable fuel''.
       (B) Section 4083(d) (relating to certain use defined as 
     removal), as redesignated by paragraph (4), is amended by 
     inserting ``or reportable liquid'' after ``taxable fuel''.
       (C) Section 4083(e)(1) (relating to administrative 
     authority), as redesignated by paragraph (4), is amended--
       (i) in subparagraph (A)--

       (I) by inserting ``or reportable liquid'' after ``taxable 
     fuel'', and
       (II) by inserting ``or such liquid'' after ``such fuel'' 
     each place it appears, and

       (ii) in subparagraph (B), by inserting ``or any reportable 
     liquid'' after ``any taxable fuel''.
       (D) Section 4101(a)(2), as added by section 5243 of this 
     Act, is amended by inserting ``or a reportable liquid'' after 
     ``taxable fuel''.
       (E) Section 4101(a)(3), as added by section 5242 of this 
     Act and redesignated by section 5243 of this Act, is amended 
     by inserting ``or any reportable liquid'' before the period 
     at the end.
       (F) Section 4102 is amended by inserting ``or any 
     reportable liquid'' before the period at the end.
       (G)(i) Section 6718, as added by section 5241 of this Act, 
     is amended--
       (I) in subsection (a), by inserting ``or any reportable 
     liquid (as defined in section 4083(c)(1))'' after `` section 
     4083(a)(1))'', and

[[Page S1040]]

       (II) in the heading, by inserting ``or reportable liquids'' 
     after ``taxable fuel''.
       (ii) The item relating to section 6718 in table of sections 
     for part I of subchapter B of chapter 68, as added by section 
     5241 of this Act, is amended by inserting ``or reportable 
     liquids'' after ``taxable fuels''.
       (H) Section 6427(h) is amended to read as follows:
       ``(h) Gasoline Blend Stocks or Additives and Reportable 
     Liquids.--Except as provided in subsection (k)--
       ``(1) if any gasoline blend stock or additive (within the 
     meaning of section 4083(a)(2)) is not used by any person to 
     produce gasoline and such person establishes that the 
     ultimate use of such gasoline blend stock or additive is not 
     to produce gasoline, or
       ``(2) if any reportable liquid (within the meaning of 
     section 4083(c)(1)) is not used by any person to produce a 
     taxable fuel and such person establishes that the ultimate 
     use of such reportable liquid is not to produce a taxable 
     fuel,
     then the Secretary shall pay (without interest) to such 
     person an amount equal to the aggregate amount of the tax 
     imposed on such person with respect to such gasoline blend 
     stock or additive or such reportable fuel.''.
       (I) Section 7232, as amended by this Act, is amended by 
     inserting ``or reportable liquid (within the meaning of 
     section 4083(c)(1))'' after ``section 4083)''.
       (J) Section 343 of the Trade Act of 2002, as amended by 
     section 5252 of this Act, is amended by inserting ``and 
     reportable liquids (as defined in section 4083(c)(1) of such 
     Code)'' after ``Internal Revenue Code of 1986)''.
       (b) Dyed Diesel.--Section 4082(a) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``and'', and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) which is removed, entered, or sold by a person 
     registered under section 4101.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to reportable liquids (as defined in section 
     4083(c) of the Internal Revenue Code) and fuel sold or used 
     after September 30, 2004.

     SEC. 5272. EXCISE TAX REPORTING.

       (a) In General.--Part II of subchapter A of chapter 61 is 
     amended by adding at the end the following new subpart:


                   ``Subpart E--Excise Tax Reporting

     ``SEC. 6025. RETURNS RELATING TO FUEL TAXES.

       ``(a) In General.--The Secretary shall require any person 
     liable for the tax imposed under Part III of subchapter A of 
     chapter 32 to file a return of such tax on a monthly basis.
       ``(b) Information Included with Return.--The Secretary 
     shall require any person filing a return under subsection (a) 
     to provide information regarding any refined product (whether 
     or not such product is taxable under this title) removed from 
     a terminal during the period for which such return 
     applies.''.
       (b) Conforming Amendment.--The table of parts for 
     subchapter A of chapter 61 is amended by adding at the end 
     the following new item:

``Subpart E--Excise Tax Reporting''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after September 30, 2004.

     SEC. 5273. INFORMATION REPORTING.

       (a) In General.--Section 4101(d) is amended by adding at 
     the end the following new flush sentence:
     ``The Secretary shall require reporting under the previous 
     sentence with respect to taxable fuels removed, entered, or 
     transferred from any refinery, pipeline, or vessel which is 
     registered under this section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply on October 1, 2004.
                                 ______
                                 
  SA 2316. Mr. KYL submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike title V and insert the following:

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

     SEC. 5000. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This title may be cited as the ``Highway 
     Reauthorization and Excise Tax Simplification Act of 2004''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this 
     title is as follows:

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

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

                 Subtitle A--Trust Fund Reauthorization

Sec. 5001. Extension of Highway Trust Fund and Aquatic Resources Trust 
              Fund expenditure authority and related taxes.
Sec. 5002. Full accounting of funds received by the Highway Trust Fund.
Sec. 5003. Modification of adjustments of apportionments.

                Subtitle B--Biodiesel Income Tax Credit

Sec. 5101. Biodiesel income tax credit.

                   Subtitle C--Fuel Fraud Prevention

Sec. 5200. Short title.

                       Part I--Aviation Jet Fuel

Sec. 5211. Taxation of aviation-grade kerosene.
Sec. 5212. Transfer of certain amounts from the Airport and Airway 
              Trust Fund to the Highway Trust Fund to reflect highway 
              use of jet fuel.

                           Part II--Dyed Fuel

Sec. 5221. Dye injection equipment.
Sec. 5222. Elimination of administrative review for taxable use of dyed 
              fuel. 
Sec. 5223. Penalty on untaxed chemically altered dyed fuel mixtures.
Sec. 5224. Termination of dyed diesel use by intercity buses.

       Part III--Modification of Inspection of Records Provisions

Sec. 5231. Authority to inspect on-site records.
Sec. 5232. Assessable penalty for refusal of entry.

            Part IV--Registration and Reporting Requirements

Sec. 5241. Registration of pipeline or vessel operators required for 
              exemption of bulk transfers to registered terminals or 
              refineries.
Sec. 5242. Display of registration.
Sec. 5243. Registration of persons within foreign trade zones.
Sec. 5244. Penalties for failure to register and failure to report.
Sec. 5245. Information reporting for persons claiming certain tax 
              benefits.

                            Part V--Imports

Sec. 5251. Tax at point of entry where importer not registered.
Sec. 5252. Reconciliation of on-loaded cargo to entered cargo.

                   Part VI--Miscellaneous Provisions

Sec. 5261. Tax on sale of diesel fuel whether suitable for use or not 
              in a diesel-powered vehicle or train.
Sec. 5262. Modification of ultimate vendor refund claims with respect 
              to farming.
Sec. 5263. Taxable fuel refunds for certain ultimate vendors.
Sec. 5264. Two-party exchanges.
Sec. 5265. Modifications of tax on use of certain vehicles.
Sec. 5266. Dedication of revenues from certain penalties to the Highway 
              Trust Fund.
Sec. 5267. Nonapplication of export exemption to delivery of fuel to 
              motor vehicles removed from United States.

                     Part VII--Total Accountability

Sec. 5271. Total accountability.
Sec. 5272. Excise tax reporting.
Sec. 5273. Information reporting.

               Subtitle D--Definition of Highway Vehicle

Sec. 5301. Exemption from certain excise taxes for mobile machinery.
Sec. 5302. Modification of definition of off-highway vehicle.

            Subtitle E--Excise Tax Reform and Simplification

                      Part I--Highway Excise Taxes

Sec. 5401. Dedication of gas guzzler tax to Highway Trust Fund.
Sec. 5402. Repeal certain excise taxes on rail diesel fuel and inland 
              waterway barge fuels.

                     Part II--Aquatic Excise Taxes

Sec. 5411. Elimination of Aquatic Resources Trust Fund and 
              transformation of Sport Fish Restoration Account.
Sec. 5412. Exemption of LED devices from sonar devices suitable for 
              finding fish.
Sec. 5413. Repeal of harbor maintenance tax on exports.
Sec. 5414. Cap on excise tax on certain fishing equipment.
Sec. 5415. Reduction in rate of tax on portable aerated bait 
              containers.

                     Part III--Aerial Excise Taxes

Sec. 5421. Clarification of excise tax exemptions for agricultural 
              aerial applicators and exemption for fixed-wing aircraft 
              engaged in forestry operations.
Sec. 5422. Modification of rural airport definition.
Sec. 5423. Exemption from ticket taxes for transportation provided by 
              seaplanes.
Sec. 5424. Certain sightseeing flights exempt from taxes on air 
              transportation.

                Part IV--Alcoholic Beverage Excise Taxes

Sec. 5431. Repeal of special occupational taxes on producers and 
              marketers of alcoholic beverages.
Sec. 5432. Suspension of limitation on rate of rum excise tax cover 
              over to Puerto Rico and Virgin Islands.

                       Part V--Sport Excise Taxes

Sec. 5441. Custom gunsmiths.

[[Page S1041]]

Sec. 5442. Modified taxation of imported archery products.
Sec. 5443. Treatment of tribal governments for purposes of Federal 
              wagering excise and occupational taxes.

                       Part VI--Other Provisions

Sec. 5451. Income tax credit for distilled spirits wholesalers and for 
              distilled spirits in control State bailment warehouses 
              for costs of carrying Federal excise taxes on bottled 
              distilled spirits.
Sec. 5452. Credit for taxpayers owning commercial power takeoff 
              vehicles.
Sec. 5453. Credit for auxiliary power units installed on diesel-powered 
              trucks.

                  Subtitle F--Miscellaneous Provisions

Sec. 5501. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 5502. National Surface Transportation Infrastructure Financing 
              Commission.
Sec. 5503. Treasury study of fuel tax compliance and interagency 
              cooperation.
Sec. 5504. Expansion of Highway Trust Fund expenditure purposes to 
              include funding for studies of supplemental or 
              alternative financing for the Highway Trust Fund.
Sec. 5505. Treasury study of highway fuels used by trucks for non-
              transportation purposes.
Sec. 5506. Delta regional transportation plan.
Sec. 5507. Treatment of employer-provided transit and van pooling 
              benefits.
Sec. 5508. Study of incentives for production of biodiesel.
Sec. 5509. Reduction of expenditures from the Highway Trust Fund.

                      Subtitle G--Revenue Offsets

     Part I--Limitation on Expensing Certain Passengers Automobiles

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

            Part II--Provision To Replenish the General Fund

Sec. 5611. Modification to corporate estimated tax requirements.

                 Subtitle A--Trust Fund Reauthorization

     SEC. 5001. EXTENSION OF HIGHWAY TRUST FUND AND AQUATIC 
                   RESOURCES TRUST FUND EXPENDITURE AUTHORITY AND 
                   RELATED TAXES.

       (a) Highway Trust Fund Expenditure Authority.--
       (1) Highway account.--Paragraph (1) of section 9503(c) 
     (relating to transfers from Highway Trust Fund for certain 
     repayments and credits) is amended--
       (A) in the matter before subparagraph (A), by striking 
     ``March 1, 2004'' and inserting ``October 1, 2009'',
       (B) by striking ``or'' at the end of subparagraph (E),
       (C) by striking the period at the end of subparagraph (F) 
     and inserting ``, or'',
       (D) by inserting after subparagraph (F), the following new 
     subparagraph:
       ``(G) authorized to be paid out of the Highway Trust Fund 
     under the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004.'', and
       (E) in the matter after subparagraph (G), as added by 
     subparagraph (D), by striking ``Surface Transportation 
     Extension Act of 2003'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004''.
       (2) Mass transit account.--Paragraph (3) of section 9503(e) 
     (relating to establishment of Mass Transit Account) is 
     amended--
       (A) in the matter before subparagraph (A), by striking 
     ``March 1, 2004'' and inserting ``October 1, 2009'',
       (B) by striking ``or'' at the end of subparagraph (C),
       (C) by striking the period at the end of subparagraph (D) 
     and inserting ``, or'',
       (D) by inserting after subparagraph (D), the following new 
     subparagraph:
       ``(E) the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004,'', and
       (E) in the matter after subparagraph (E), as added by 
     subparagraph (D), by striking ``Surface Transportation 
     Extension Act of 2003'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004''.
       (3) Exception to limitation on transfers.--Subparagraph (B) 
     of section 9503(b)(5) (relating to limitation on transfers to 
     Highway Trust Fund) is amended by striking ``March 1, 2004'' 
     and inserting ``October 1, 2009''.
       (b) Aquatic Resources Trust Fund Expenditure Authority.--
       (1) Sport fish restoration account.--Paragraph (2) of 
     section 9504(b) (relating to Sport Fish Restoration Account) 
     is amended by striking ``Surface Transportation Extension Act 
     of 2003'' each place it appears and inserting ``Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2004''.
       (2) Boat safety account.--Section 9504(c) (relating to 
     expenditures from Boat Safety Account) is amended--
       (A) by striking ``March 1, 2004'' and inserting ``October 
     1, 2009'', and
       (B) by striking ``Surface Transportation Extension Act of 
     2003'' and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2004''.
       (3) Exception to limitation on transfers.--Paragraph (2) of 
     section 9504(d) (relating to limitation on transfers to 
     Aquatic Resources Trust Fund) is amended by striking ``March 
     1, 2004'' and inserting ``October 1, 2009''.
       (4) Technical correction.--The last sentence of paragraph 
     (2) of section 9504(b) is amended by striking ``subparagraph 
     (B)'', and inserting ``subparagraph (C)''.
       (c) Extension of Taxes.--
       (1) In general.--The following provisions are each amended 
     by striking ``2005'' each place it appears and inserting 
     ``2009'':
       (A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax 
     on certain buses).
       (B) Section 4041(a)(2)(B) (relating to rate of tax on 
     special motor fuels).
       (C) Section 4041(m)(1)(A) (relating to certain alcohol 
     fuels produced from natural gas).
       (D) Section 4051(c) (relating to termination of tax on 
     heavy trucks and trailers).
       (E) Section 4071(d) (relating to termination of tax on 
     tires).
       (F) Section 4081(d)(1) (relating to termination of tax on 
     gasoline, diesel fuel, and kerosene).
       (G) Section 4481(e) (relating to period tax in effect).
       (H) Section 4482(c)(4) (relating to taxable period).
       (I) Section 4482(d) (relating to special rule for taxable 
     period in which termination date occurs).
       (2) Floor stocks refunds.--Section 6412(a)(1) (relating to 
     floor stocks refunds) is amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2009'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2010''.
       (d) Extension of Certain Exemptions.--The following 
     provisions are each amended by striking ``2005'' and 
     inserting ``2009'':
       (1) Section 4221(a) (relating to certain tax-free sales).
       (2) Section 4483(g) (relating to termination of exemptions 
     for highway use tax).
       (e) Extension of Deposits Into, and Certain Transfers From, 
     Trust Fund.--
       (1) In general.--Subsections (b), (c)(2), (c)(3), 
     (c)(4)(A)(i), and (c)(5)(A) of section 9503 (relating to the 
     Highway Trust Fund) are amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2009'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2010''.
       (2) Conforming amendments to land and water conservation 
     fund.--Section 201(b) of the Land and Water Conservation Fund 
     Act of 1965 (16 U.S.C. 460l-11(b)) is amended--
       (A) by striking ``2003'' and inserting ``2007'', and
       (B) by striking ``2004'' each place it appears and 
     inserting ``2008''.
       (f) Extension of Tax Benefits for Qualified Methanol and 
     Ethanol Fuel Produced From Coal.--Section 4041(b)(2) 
     (relating to qualified methanol and ethanol fuel) is 
     amended--
       (1) by striking ``2007'' in subparagraph (C)(ii) and 
     inserting ``2010'', and
       (2) by striking ``October 1, 2007'' in subparagraph (D) and 
     inserting ``January 1, 2011''.
       (g) Prohibition on Use of Highway Account for Rail 
     Projects.--Section 9503(c) (relating to transfers from 
     Highway Trust Fund for certain repayments and credits) is 
     amended by adding at the end the following new paragraph:
       ``(6) Prohibition on use of highway account for rail 
     projects.--With respect to projects beginning after the date 
     of the enactment of this paragraph, no amount shall be 
     available from the Highway Account (as defined in subsection 
     (e)(5)(B)) for any rail project.''.
       (h) Highway Trust Fund Expenditures for Highway Use Tax 
     Evasion Projects.--From amounts available in the Highway 
     Trust Fund, there is authorized to be expended such sums as 
     are necessary for highway use tax evasion projects.
       (i) Effective Date.--The amendments made by and provisions 
     of this section shall take effect on the date of the 
     enactment of this Act.

     SEC. 5002. FULL ACCOUNTING OF FUNDS RECEIVED BY THE HIGHWAY 
                   TRUST FUND.

       (a) In General.--Section 9503(c) (relating to transfers 
     from Highway Trust Fund for certain repayments and credits), 
     as amended by section 5001 of this Act, is amended by 
     striking paragraph (2) and redesignating paragraphs (3), (4), 
     (5), and (6) as paragraphs (2), (3), (4), and (5), 
     respectively.
       (b) Interest on Unexpended Balances Credited to Trust 
     Fund.--Section 9503 (relating to the Highway Trust Fund) is 
     amended by striking subsection (f).
       (c) Conforming Amendments.--
       (1) Section 9503(b)(4)(D) is amended by striking 
     ``paragraph (4)(D) or (5)(B)'' and inserting ``paragraph 
     (3)(D) or (4)(B)''.
       (2) Paragraph (2) of section 9503(c) (as redesignated by 
     subsection (a)) is amended by adding at the end the following 
     new sentence: ``The amounts payable from the Highway Trust 
     Fund under this paragraph shall be determined by taking into 
     account only the portion of the taxes which are deposited 
     into the Highway Trust Fund.''.
       (3) Section 9504(a)(2) is amended by striking ``section 
     9503(c)(4), section 9503(c)(5)'' and inserting ``section 
     9503(c)(3), section 9503(c)(4)''.
       (4) Paragraph (2) of section 9504(b), as amended by section 
     5001 of this Act, is amended by striking ``section 
     9503(c)(5)'' and inserting ``section 9503(c)(4)''.

[[Page S1042]]

       (5) Section 9504(e) is amended by striking ``section 
     9503(c)(4)'' and inserting ``section 9503(c)(3)''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to amounts paid 
     for which no transfer from the Highway Trust Fund has been 
     made before April 1, 2004.
       (2) Interest credited.--The amendment made by subsection 
     (b) shall take effect on the date of the enactment of this 
     Act.

     SEC. 5003. MODIFICATION OF ADJUSTMENTS OF APPORTIONMENTS.

       (a) In General.--Section 9503(d) (relating to adjustments 
     for apportionments) is amended--
       (1) by striking ``24-month'' in paragraph (1)(B) and 
     inserting ``48-month'', and
       (2) by striking ``2 years''' in the heading for paragraph 
     (3) and inserting ``4 years'''.
       (b) Measurement of Net Highway Receipts.--Section 9503(d) 
     is amended by redesignating paragraph (6) as paragraph (7) 
     and by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) Measurement of net highway receipts.--For purposes of 
     making any estimate under paragraph (1) of net highway 
     receipts for periods ending after the date specified in 
     subsection (b)(1), the Secretary shall treat--
       ``(A) each expiring provision of subsection (b) which is 
     related to appropriations or transfers to the Highway Trust 
     Fund to have been extended through the end of the 48-month 
     period referred to in paragraph (1)(B), and
       ``(B) with respect to each tax imposed under the sections 
     referred to in subsection (b)(1), the rate of such tax during 
     the 48-month period referred to in paragraph (1)(B) to be the 
     same as the rate of such tax as in effect on the date of such 
     estimate.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

                Subtitle B--Biodiesel Income Tax Credit

     SEC. 5101. BIODIESEL INCOME TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by inserting after section 40 the following new section:

     ``SEC. 40A. BIODIESEL USED AS FUEL.

       ``(a) General Rule.--For purposes of section 38, the 
     biodiesel fuels credit determined under this section for the 
     taxable year is an amount equal to the sum of--
       ``(1) the biodiesel mixture credit, plus
       ``(2) the biodiesel credit.
       ``(b) Definition of Biodiesel Mixture Credit and Biodiesel 
     Credit.--For purposes of this section--
       ``(1) Biodiesel mixture credit.--
       ``(A) In general.--The biodiesel mixture credit of any 
     taxpayer for any taxable year is 50 cents for each gallon of 
     biodiesel used by the taxpayer in the production of a 
     qualified biodiesel mixture.
       ``(B) Qualified biodiesel mixture.--The term `qualified 
     biodiesel mixture' means a mixture of biodiesel and diesel 
     fuel (as defined in section 4083(a)(3)), determined without 
     regard to any use of kerosene, which--
       ``(i) is sold by the taxpayer producing such mixture to any 
     person for use as a fuel, or
       ``(ii) is used as a fuel by the taxpayer producing such 
     mixture.
       ``(C) Sale or use must be in trade or business, etc.--
     Biodiesel used in the production of a qualified biodiesel 
     mixture shall be taken into account--
       ``(i) only if the sale or use described in subparagraph (B) 
     is in a trade or business of the taxpayer, and
       ``(ii) for the taxable year in which such sale or use 
     occurs.
       ``(D) Casual off-farm production not eligible.--No credit 
     shall be allowed under this section with respect to any 
     casual off-farm production of a qualified biodiesel mixture.
       ``(2) Biodiesel credit.--
       ``(A) In general.--The biodiesel credit of any taxpayer for 
     any taxable year is 50 cents for each gallon of biodiesel 
     which is not in a mixture with diesel fuel and which during 
     the taxable year--
       ``(i) is used by the taxpayer as a fuel in a trade or 
     business, or
       ``(ii) is sold by the taxpayer at retail to a person and 
     placed in the fuel tank of such person's vehicle.
       ``(B) User credit not to apply to biodiesel sold at 
     retail.--No credit shall be allowed under subparagraph (A)(i) 
     with respect to any biodiesel which was sold in a retail sale 
     described in subparagraph (A)(ii).
       ``(3) Credit for agri-biodiesel.--In the case of any 
     biodiesel which is agri-biodiesel, paragraphs (1)(A) and 
     (2)(A) shall be applied by substituting `$1.00' for `50 
     cents'.
       ``(4) Certification for biodiesel.--No credit shall be 
     allowed under this section unless the taxpayer obtains a 
     certification (in such form and manner as prescribed by the 
     Secretary) from the producer or importer of the biodiesel 
     which identifies the product produced and the percentage of 
     biodiesel and agri-biodiesel in the product.
       ``(c) Coordination With Credit Against Excise Tax.--The 
     amount of the credit determined under this section with 
     respect to any biodiesel shall be properly reduced to take 
     into account any benefit provided with respect to such 
     biodiesel solely by reason of the application of section 6426 
     or 6427(e).
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Biodiesel.--The term `biodiesel' means the monoalkyl 
     esters of long chain fatty acids derived from plant or animal 
     matter which meet--
       ``(A) the registration requirements for fuels and fuel 
     additives established by the Environmental Protection Agency 
     under section 211 of the Clean Air Act (42 U.S.C. 7545), and
       ``(B) the requirements of the American Society of Testing 
     and Materials D6751.
       ``(2) Agri-biodiesel.--The term `agri-biodiesel' means 
     biodiesel derived solely from virgin oils, including esters 
     derived from virgin vegetable oils from corn, soybeans, 
     sunflower seeds, cottonseeds, canola, crambe, rapeseeds, 
     safflowers, flaxseeds, rice bran, and mustard seeds, and from 
     animal fats.
       ``(3) Mixture or biodiesel not used as a fuel, etc.--
       ``(A) Mixtures.--If--
       ``(i) any credit was determined under this section with 
     respect to biodiesel used in the production of any qualified 
     biodiesel mixture, and
       ``(ii) any person--

       ``(I) separates the biodiesel from the mixture, or

       ``(II) without separation, uses the mixture other than as a 
     fuel,

     then there is hereby imposed on such person a tax equal to 
     the product of the rate applicable under subsection (b)(1)(A) 
     and the number of gallons of such biodiesel in such mixture.
       ``(B) Biodiesel.--If--
       ``(i) any credit was determined under this section with 
     respect to the retail sale of any biodiesel, and
       ``(ii) any person mixes such biodiesel or uses such 
     biodiesel other than as a fuel,
     then there is hereby imposed on such person a tax equal to 
     the product of the rate applicable under subsection (b)(2)(A) 
     and the number of gallons of such biodiesel.
       ``(C) Applicable laws.--All provisions of law, including 
     penalties, shall, insofar as applicable and not inconsistent 
     with this section, apply in respect of any tax imposed under 
     subparagraph (A) or (B) as if such tax were imposed by 
     section 4081 and not by this chapter.
       ``(4) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(e) Termination.--This section shall not apply to any 
     sale or use after December 31, 2006.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit) is 
     amended by striking ``plus'' at the end of paragraph (14), by 
     striking the period at the end of paragraph (15) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(16) the biodiesel fuels credit determined under section 
     40A(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d) is amended by adding at the end the 
     following new paragraph:
       ``(11) No carryback of biodiesel fuels credit before 
     effective date.--No portion of the unused business credit for 
     any taxable year which is attributable to the biodiesel fuels 
     credit determined under section 40A may be carried back to a 
     taxable year ending on or before September 30, 2004.''.
       (2)(A) Section 87 is amended to read as follows:

     ``SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS.

       ``Gross income includes--
       ``(1) the amount of the alcohol fuels credit determined 
     with respect to the taxpayer for the taxable year under 
     section 40(a), and
       ``(2) the biodiesel fuels credit determined with respect to 
     the taxpayer for the taxable year under section 40A(a).''.
       (B) The item relating to section 87 in the table of 
     sections for part II of subchapter B of chapter 1 is amended 
     by striking ``fuel credit'' and inserting ``and biodiesel 
     fuels credits''.
       (3) Section 196(c) is amended by striking ``and'' at the 
     end of paragraph (9), by striking the period at the end of 
     paragraph (10) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(11) the biodiesel fuels credit determined under section 
     40A(a).''.
       (4) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding after the item 
     relating to section 40 the following new item:

``Sec. 40A. Biodiesel used as fuel.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel produced, and sold or used, after 
     September 30, 2004, in taxable years ending after such date.

                   Subtitle C--Fuel Fraud Prevention

     SEC. 5200. SHORT TITLE.

       This subtitle may be cited as the ``Fuel Fraud Prevention 
     Act of 2004''.

                       PART I--AVIATION JET FUEL

     SEC. 5211. TAXATION OF AVIATION-GRADE KEROSENE.

       (a) Rate of Tax.--
       (1) In general.--Subparagraph (A) of section 4081(a)(2) is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) in the case of aviation-grade kerosene, 21.8 cents 
     per gallon.''.
       (2) Commercial aviation.--Paragraph (2) of section 4081(a) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) Taxes imposed on fuel used in commercial aviation.--
     In the case of aviation-grade kerosene which is removed from 
     any refinery or terminal directly into the fuel

[[Page S1043]]

     tank of an aircraft for use in commercial aviation, the rate 
     of tax under subparagraph (A)(iv) shall be 4.3 cents per 
     gallon.''.
       (3) Nontaxable uses.--
       (A) In general.--Section 4082 is amended by redesignating 
     subsections (e) and (f) as subsections (f) and (g), 
     respectively, and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Aviation-Grade Kerosene.--In the case of aviation-
     grade kerosene which is exempt from the tax imposed by 
     section 4041(c) (other than by reason of a prior imposition 
     of tax) and which is removed from any refinery or terminal 
     directly into the fuel tank of an aircraft, the rate of tax 
     under section 4081(a)(2)(A)(iv) shall be zero.''.
       (B) Conforming amendments.--
       (i) Subsection (b) of section 4082 is amended by adding at 
     the end the following new flush sentence: ``The term 
     `nontaxable use' does not include the use of aviation-grade 
     kerosene in an aircraft.''.
       (ii) Section 4082(d) is amended by striking paragraph (1) 
     and by redesignating paragraphs (2) and (3) as paragraphs (1) 
     and (2), respectively.
       (4) Nonaircraft use of aviation-grade kerosene.--
       (A) In general.--Subparagraph (B) of section 4041(a)(1) is 
     amended by adding at the end the following new sentence: 
     ``This subparagraph shall not apply to aviation-grade 
     kerosene.''.
       (B) Conforming amendment.--The heading for paragraph (1) of 
     section 4041(a) is amended by inserting ``and kerosene'' 
     after ``diesel fuel''.
       (b) Commercial Aviation.--Section 4083 is amended 
     redesignating subsections (b) and (c) as subsections (c) and 
     (d), respectively, and by inserting after subsection (a) the 
     following new subsection:
       ``(b) Commercial Aviation.--For purposes of this subpart, 
     the term `commercial aviation' means any use of an aircraft 
     in a business of transporting persons or property for 
     compensation or hire by air, unless properly allocable to any 
     transportation exempt from the taxes imposed by section 4261 
     and 4271 by reason of section 4281 or 4282 or by reason of 
     section 4261(h).''.
       (c) Refunds.--
       (1) In general.--Paragraph (4) of section 6427(l) is 
     amended to read as follows:
       ``(4) Refunds for aviation-grade kerosene.--
       ``(A) No refund of certain taxes on fuel used in commercial 
     aviation.--In the case of aviation-grade kerosene used in 
     commercial aviation (as defined in section 4083(b)) (other 
     than supplies for vessels or aircraft within the meaning of 
     section 4221(d)(3)), paragraph (1) shall not apply to so much 
     of the tax imposed by section 4081 as is attributable to--
       ``(i) the Leaking Underground Storage Tank Trust Fund 
     financing rate imposed by such section, and
       ``(ii) so much of the rate of tax specified in section 
     4081(a)(2)(A)(iv) as does not exceed 4.3 cents per gallon.
       ``(B) Payment to ultimate, registered vendor.--With respect 
     to aviation-grade kerosene, if the ultimate purchaser of such 
     kerosene waives (at such time and in such form and manner as 
     the Secretary shall prescribe) the right to payment under 
     paragraph (1) and assigns such right to the ultimate vendor, 
     then the Secretary shall pay the amount which would be paid 
     under paragraph (1) to such ultimate vendor, but only if such 
     ultimate vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.
       (2) Time for filing claims.--Paragraph (4) of section 
     6427(i) is amended by striking ``subsection (l)(5)'' and 
     inserting ``paragraph (4)(B) or (5) of subsection (l)''.
       (3) Conforming amendment.--Subparagraph (B) of section 
     6427(l)(2) is amended to read as follows:
       ``(B) in the case of aviation-grade kerosene--
       ``(i) any use which is exempt from the tax imposed by 
     section 4041(c) other than by reason of a prior imposition of 
     tax, or
       ``(ii) any use in commercial aviation (within the meaning 
     of section 4083(b)).''.
       (d) Repeal of Prior Taxation of Aviation Fuel.--
       (1) In general.--Part III of subchapter A of chapter 32 is 
     amended by striking subpart B and by redesignating subpart C 
     as subpart B.
       (2) Conforming amendments.--
       (A) Section 4041(c) is amended to read as follows:
       ``(c) Aviation-Grade Kerosene.--
       ``(1) In general.--There is hereby imposed a tax upon 
     aviation-grade kerosene--
       ``(A) sold by any person to an owner, lessee, or other 
     operator of an aircraft for use in such aircraft, or
       ``(B) used by any person in an aircraft unless there was a 
     taxable sale of such fuel under subparagraph (A).
       ``(2) Exemption for previously taxed fuel.--No tax shall be 
     imposed by this subsection on the sale or use of any 
     aviation-grade kerosene if tax was imposed on such liquid 
     under section 4081 and the tax thereon was not credited or 
     refunded.
       ``(3) Rate of tax.--The rate of tax imposed by this 
     subsection shall be the rate of tax specified in section 
     4081(a)(2)(A)(iv) which is in effect at the time of such sale 
     or use.''.
       (B) Section 4041(d)(2) is amended by striking ``section 
     4091'' and inserting ``section 4081''.
       (C) Section 4041 is amended by striking subsection (e).
       (D) Section 4041 is amended by striking subsection (i).
       (E) Section 4041(m)(1) is amended to read as follows:
       ``(1) In general.--In the case of the sale or use of any 
     partially exempt methanol or ethanol fuel, the rate of the 
     tax imposed by subsection (a)(2) shall be--
       ``(A) after September 30, 1997, and before September 30, 
     2009--
       ``(i) in the case of fuel none of the alcohol in which 
     consists of ethanol, 9.15 cents per gallon, and
       ``(ii) in any other case, 11.3 cents per gallon, and
       ``(B) after September 30, 2009--
       ``(i) in the case of fuel none of the alcohol in which 
     consists of ethanol, 2.15 cents per gallon, and
       ``(ii) in any other case, 4.3 cents per gallon.''.
       (F) Sections 4101(a), 4103, 4221(a), and 6206 are each 
     amended by striking ``, 4081, or 4091'' and inserting ``or 
     4081''.
       (G) Section 6416(b)(2) is amended by striking ``4091 or''.
       (H) Section 6416(b)(3) is amended by striking ``or 4091'' 
     each place it appears.
       (I) Section 6416(d) is amended by striking ``or to the tax 
     imposed by section 4091 in the case of refunds described in 
     section 4091(d)''.
       (J) Section 6427(j)(1) is amended by striking ``, 4081, and 
     4091'' and inserting ``and 4081''.
       (K)(i) Section 6427(l)(1) is amended to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     subsection and in subsection (k), if any diesel fuel or 
     kerosene on which tax has been imposed by section 4041 or 
     4081 is used by any person in a nontaxable use, the Secretary 
     shall pay (without interest) to the ultimate purchaser of 
     such fuel an amount equal to the aggregate amount of tax 
     imposed on such fuel under section 4041 or 4081, as the case 
     may be, reduced by any refund paid to the ultimate vendor 
     under paragraph (4)(B).''.
       (ii) Paragraph (5)(B) of section 6427(l) is amended by 
     striking ``Paragraph (1)(A) shall not apply to kerosene'' and 
     inserting ``Paragraph (1) shall not apply to kerosene (other 
     than aviation-grade kerosene)''.
       (L) Subparagraph (B) of section 6724(d)(1) is amended by 
     striking clause (xv) and by redesignating the succeeding 
     clauses accordingly.
       (M) Paragraph (2) of section 6724(d) is amended by striking 
     subparagraph (W) and by redesignating the succeeding 
     subparagraphs accordingly.
       (N) Paragraph (1) of section 9502(b) is amended by adding 
     ``and'' at the end of subparagraph (B) and by striking 
     subparagraphs (C) and (D) and inserting the following new 
     subparagraph:
       ``(C) section 4081 with respect to aviation gasoline and 
     aviation-grade kerosene, and''.
       (O) The last sentence of section 9502(b) is amended to read 
     as follows:
     ``There shall not be taken into account under paragraph (1) 
     so much of the taxes imposed by section 4081 as are 
     determined at the rate specified in section 4081(a)(2)(B).''.
       (P) Subsection (b) of section 9508 is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) and (5) as 
     paragraphs (3) and (4), respectively.
       (Q) Section 9508(c)(2)(A) is amended by striking ``sections 
     4081 and 4091'' and inserting ``section 4081''.
       (R) The table of subparts for part III of subchapter A of 
     chapter 32 is amended to read as follows:

``Subpart A. Motor and aviation fuels.
``Subpart B. Special provisions applicable to fuels tax.''.
       (S) The heading for subpart A of part III of subchapter A 
     of chapter 32 is amended to read as follows:

                ``Subpart A--Motor and Aviation Fuels''.

       (T) The heading for subpart B of part III of subchapter A 
     of chapter 32 is amended to read as follows:

       ``Subpart B--Special Provisions Applicable to Fuels Tax''.

       (g) Other Amendments.--
       (1) Section 4081(c) is amended by adding at the end the 
     following new flush sentence:
     ``In the case of any taxable fuel which is aviation-grade 
     keorsene, this subsection shall not apply and the rules of 
     section 4091(c) (as in effect on the day before the date of 
     the enactment of the Fuel Fraud Prevention Act of 2004) shall 
     apply.''.
       (2) For purposes of the Internal Revenue Code of 1986, any 
     reference to section 4091(c) shall be treated as a reference 
     to the rules of such section as in effect on the date before 
     the date of the enactment of this Act.
       (f) Effective Date.--The amendments made by this section 
     shall apply to aviation-grade kerosene removed, entered, or 
     sold after September 30, 2004.
       (g) Floor Stocks Tax.--
       (1) In general.--There is hereby imposed on aviation-grade 
     kerosene held on October 1, 2004, by any person a tax equal 
     to--
       (A) the tax which would have been imposed before such date 
     on such kerosene had the amendments made by this section been 
     in effect at all times before such date, reduced by
       (B) the tax imposed before such date under section 4091 of 
     the Internal Revenue Code of 1986, as in effect on the day 
     before the date of the enactment of this Act.
       (2) Liability for tax and method of payment.--
       (A) Liability for tax.--The person holding the kerosene on 
     October 1, 2004, to which the

[[Page S1044]]

     tax imposed by paragraph (1) applies shall be liable for such 
     tax.
       (B) Method and time for payment.--The tax imposed by 
     paragraph (1) shall be paid at such time and in such manner 
     as the Secretary of the Treasury shall prescribe, including 
     the nonapplication of such tax on de minimis amounts of 
     kerosene.
       (3) Transfer of floor stock tax revenues to trust funds.--
     For purposes of determining the amount transferred to any 
     trust fund, the tax imposed by this subsection shall be 
     treated as imposed by section 4081 of the Internal Revenue 
     Code of 1986--
       (A) at the Leaking Underground Storage Tank Trust Fund 
     financing rate under such section to the extent of 0.1 cents 
     per gallon, and
       (B) at the rate under section 4081(a)(2)(A)(iv) to the 
     extent of the remainder.
       (4) Held by a person.--For purposes of this section, 
     kerosene shall be considered as held by a person if title 
     thereto has passed to such person (whether or not delivery to 
     the person has been made).
       (5) Other laws applicable.--All provisions of law, 
     including penalties, applicable with respect to the tax 
     imposed by section 4081 of such Code shall, insofar as 
     applicable and not inconsistent with the provisions of this 
     subsection, apply with respect to the floor stock tax imposed 
     by paragraph (1) to the same extent as if such tax were 
     imposed by such section.

     SEC. 5212. TRANSFER OF CERTAIN AMOUNTS FROM THE AIRPORT AND 
                   AIRWAY TRUST FUND TO THE HIGHWAY TRUST FUND TO 
                   REFLECT HIGHWAY USE OF JET FUEL.

       (a) In General.--Section 9502(d) is amended by adding at 
     the end the following new paragraph:
       ``(7) Transfers from the trust fund to the highway trust 
     fund to reflect highway use of jet fuel.--
       ``(A) In general.--The Secretary shall pay from the Airport 
     and Airway Trust Fund into the Highway Trust Fund--
       ``(i) $395,000,000 in fiscal year 2005,
       ``(ii) $425,000,000 in fiscal year 2006,
       ``(iii) $429,000,000 in fiscal year 2007,
       ``(iv) $432,000,000 in fiscal year 2008, and
       ``(v) $435,000,000 in fiscal year 2009.
       ``(B) Amounts transferred to mass transit account.--The 
     Secretary shall transfer 11 percent of the amounts paid into 
     the Highway Trust Fund under subparagraph (A) to the Mass 
     Transit Account established under section 9503(e).''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 9503 is amended--
       (A) by striking ``appropriated or credited'' and inserting 
     ``paid, appropriated, or credited'', and
       (B) by striking ``or section 9602(b)'' and inserting ``, 
     section 9502(d)(7), or section 9602(b)''.
       (2) Subsection (e)(1) of section 9503 is amended by 
     striking ``or section 9602(b)'' and inserting ``, section 
     9502(d)(7), or section 9602(b)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                           PART II--DYED FUEL

     SEC. 5221. DYE INJECTION EQUIPMENT.

       (a) In General.--Section 4082(a)(2) (relating to exemptions 
     for diesel fuel and kerosene) is amended by inserting ``by 
     mechanical injection'' after ``indelibly dyed''.
       (b) Dye Injector Security.--Not later than June 30, 2004, 
     the Secretary of the Treasury shall issue regulations 
     regarding mechanical dye injection systems described in the 
     amendment made by subsection (a), and such regulations shall 
     include standards for making such systems tamper resistant.
       (c) Penalty for Tampering With or Failing To Maintain 
     Security Requirements for Mechanical Dye Injection Systems.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding after 
     section 6715 the following new section:

     ``SEC. 6715A. TAMPERING WITH OR FAILING TO MAINTAIN SECURITY 
                   REQUIREMENTS FOR MECHANICAL DYE INJECTION 
                   SYSTEMS.

       ``(a) Imposition of Penalty--
       ``(1) Tampering.--If any person tampers with a mechanical 
     dye injection system used to indelibly dye fuel for purposes 
     of section 4082, then such person shall pay a penalty in 
     addition to the tax (if any).
       ``(2) Failure to maintain security requirements.--If any 
     operator of a mechanical dye injection system used to 
     indelibly dye fuel for purposes of section 4082 fails to 
     maintain the security standards for such system as 
     established by the Secretary, then such operator shall pay a 
     penalty.
       ``(b) Amount of Penalty.--The amount of the penalty under 
     subsection (a) shall be--
       ``(1) for each violation described in paragraph (1), the 
     greater of--
       ``(A) $25,000, or
       ``(B) $10 for each gallon of fuel involved, and
       ``(2) for each--
       ``(A) failure to maintain security standards described in 
     paragraph (2), $1,000, and
       ``(B) failure to correct a violation described in paragraph 
     (2), $1,000 per day for each day after which such violation 
     was discovered or such person should have reasonably known of 
     such violation.
       ``(c) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by adding after the 
     item related to section 6715 the following new item:

``Sec. 6715A. Tampering with or failing to maintain security 
              requirements for mechanical dye injection systems.''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (c) shall take effect 180 days after the date on which 
     the Secretary issues the regulations described in subsection 
     (b).

     SEC. 5222. ELIMINATION OF ADMINISTRATIVE REVIEW FOR TAXABLE 
                   USE OF DYED FUEL.

       (a) In General.--Section 6715 is amended by inserting at 
     the end the following new subsection:
       ``(e) No Administrative Appeal for Third and Subsequent 
     Violations.--In the case of any person who is found to be 
     subject to the penalty under this section after a chemical 
     analysis of such fuel and who has been penalized under this 
     section at least twice after the date of the enactment of 
     this subsection, no administrative appeal or review shall be 
     allowed with respect to such finding except in the case of a 
     claim regarding--
       ``(1) fraud or mistake in the chemical analysis, or
       ``(2) mathematical calculation of the amount of the 
     penalty.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after the date of the 
     enactment of this Act.

     SEC. 5223. PENALTY ON UNTAXED CHEMICALLY ALTERED DYED FUEL 
                   MIXTURES.

       (a) In General.--Section 6715(a) (relating to dyed fuel 
     sold for use or used in taxable use, etc.) is amended by 
     striking ``or'' in paragraph (2), by inserting ``or'' at the 
     end of paragraph (3), and by inserting after paragraph (3) 
     the following new paragraph:
       ``(4) any person who has knowledge that a dyed fuel which 
     has been altered as described in paragraph (3) sells or holds 
     for sale such fuel for any use which the person knows or has 
     reason to know is not a nontaxable use of such fuel,''.
       (b) Conforming Amendment.--Section 6715(a)(3) is amended by 
     striking ``alters, or attempts to alter,'' and inserting 
     ``alters, chemically or otherwise, or attempts to so 
     alter,''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5224. TERMINATION OF DYED DIESEL USE BY INTERCITY BUSES.

       (a) In General.--Paragraph (3) of section 4082(b) (relating 
     to nontaxable use) is amended to read as follows:
       ``(3) any use described in section 
     4041(a)(1)(C)(iii)(II).''.
       (b) Ultimate Vendor Refund.--Subsection (b) of section 6427 
     is amended by adding at the end the following new paragraph:
       ``(4) Refunds for use of diesel fuel in certain intercity 
     buses.--
       ``(A) In general.--With respect to any fuel to which 
     paragraph (2)(A) applies, if the ultimate purchaser of such 
     fuel waives (at such time and in such form and manner as the 
     Secretary shall prescribe) the right to payment under 
     paragraph (1) and assigns such right to the ultimate vendor, 
     then the Secretary shall pay the amount which would be paid 
     under paragraph (1) to such ultimate vendor, but only if such 
     ultimate vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).
       ``(B) Credit cards.--For purposes of this paragraph, if the 
     sale of such fuel is made by means of a credit card, the 
     person extending credit to the ultimate purchaser shall be 
     deemed to be the ultimate vendor.''.
       (c) Payment of Refunds.--Subparagraph (A) of section 
     6427(i)(4), as amended by section 5211 of this Act, is 
     amended by inserting ``subsections (b)(4) and'' after ``filed 
     under''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel sold after September 30, 2004.

       PART III--MODIFICATION OF INSPECTION OF RECORDS PROVISIONS

     SEC. 5231. AUTHORITY TO INSPECT ON-SITE RECORDS.

       (a) In General.--Section 4083(d)(1)(A) (relating to 
     administrative authority), as amended by section 5211 of this 
     Act, is amended by striking ``and'' at the end of clause (i) 
     and by inserting after clause (ii) the following new clause:
       ``(iii) inspecting any books and records and any shipping 
     papers pertaining to such fuel, and''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5232. ASSESSABLE PENALTY FOR REFUSAL OF ENTRY.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5221 of this Act, is amended by adding at the end the 
     following new section:

[[Page S1045]]

     ``SEC. 6717. REFUSAL OF ENTRY.

       ``(a) In General.--In addition to any other penalty 
     provided by law, any person who refuses to admit entry or 
     refuses to permit any other action by the Secretary 
     authorized by section 4083(d)(1) shall pay a penalty of 
     $1,000 for such refusal.
       ``(b) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (b) Conforming Amendments.--
       (1) Section 4083(d)(3), as amended by section 5211 of this 
     Act, is amended--
       (A) by striking ``entry.--The penalty'' and inserting: 
     ``entry.--
       ``(A) Forfeiture.--The penalty'', and
       (B) by adding at the end the following new subparagraph:
       ``(B) Assessable penalty.--For additional assessable 
     penalty for the refusal to admit entry or other refusal to 
     permit an action by the Secretary authorized by paragraph 
     (1), see section 6717.''.
       (2) The table of sections for part I of subchapter B of 
     chapter 68, as amended by section 5221 of this Act, is 
     amended by adding at the end the following new item:

``Sec. 6717. Refusal of entry.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

            PART IV--REGISTRATION AND REPORTING REQUIREMENTS

     SEC. 5241. REGISTRATION OF PIPELINE OR VESSEL OPERATORS 
                   REQUIRED FOR EXEMPTION OF BULK TRANSFERS TO 
                   REGISTERED TERMINALS OR REFINERIES.

       (a) In General.--Section 4081(a)(1)(B) (relating to 
     exemption for bulk transfers to registered terminals or 
     refineries) is amended--
       (1) by inserting ``by pipeline or vessel'' after 
     ``transferred in bulk'', and
       (2) by inserting ``, the operator of such pipeline or 
     vessel,'' after ``the taxable fuel''.
       (b) Civil Penalty for Carrying Taxable Fuels by 
     Nonregistered Pipelines or Vessels.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5232 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6718. CARRYING TAXABLE FUELS BY NONREGISTERED 
                   PIPELINES OR VESSELS.

       ``(a) Imposition of Penalty.--If any person knowingly 
     transfers any taxable fuel (as defined in section 4083(a)(1)) 
     in bulk pursuant to section 4081(a)(1)(B) to an unregistered, 
     such person shall pay a penalty in addition to the tax (if 
     any).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amount of the penalty under subsection (a) on each act shall 
     be an amount equal to the greater of--
       ``(A) $10,000, or
       ``(B) $1 per gallon.
       ``(2) Multiple violations.--In determining the penalty 
     under subsection (a) on any person, paragraph (1) shall be 
     applied by increasing the amount in paragraph (1) by the 
     product of such amount and the number of prior penalties (if 
     any) imposed by this section on such person (or a related 
     person or any predecessor of such person or related person).
       ``(c) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.
       ``(d) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5232 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6718. Carrying taxable fuels by nonregistered pipelines or 
              vessels.''.
       (c) Publication of Registered Persons.--Not later than June 
     30, 2004, the Secretary of the Treasury shall publish a list 
     of persons required to be registered under section 4101 of 
     the Internal Revenue Code of 1986.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2004.

     SEC. 5242. DISPLAY OF REGISTRATION.

       (a) In General.--Subsection (a) of section 4101 (relating 
     to registration) is amended--
       (1) by striking ``Every'' and inserting the following:
       ``(1) In general.--Every'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Display of registration.--Every operator of a vessel 
     required by the Secretary to register under this section 
     shall display proof of registration through an electronic 
     identification device prescribed by the Secretary on each 
     vessel used by such operator to transport any taxable 
     fuel.''.
       (b) Civil Penalty for Failure to Display Registration.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5241 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6719. FAILURE TO DISPLAY REGISTRATION OF VESSEL.

       ``(a) Failure to Display Registration.--Every operator of a 
     vessel who fails to display proof of registration pursuant to 
     section 4101(a)(2) shall pay a penalty of $500 for each such 
     failure. With respect to any vessel, only one penalty shall 
     be imposed by this section during any calendar month.
       ``(b) Multiple Violations.--In determining the penalty 
     under subsection (a) on any person, subsection (a) shall be 
     applied by increasing the amount in subsection (a) by the 
     product of such amount and the number of prior penalties (if 
     any) imposed by this section on such person (or a related 
     person or any predecessor of such person or related person).
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5241 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6719. Failure to display registration of vessel.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5243. REGISTRATION OF PERSONS WITHIN FOREIGN TRADE 
                   ZONES, ETC..

       (a) In General.--Section 4101(a), as amended by section 
     5242 of this Act, is amended by redesignating paragraph (2) 
     as paragraph (3), and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Registration of persons within foreign trade zones, 
     etc..--The Secretary shall require registration by any person 
     which--
       ``(A) operates a terminal or refinery within a foreign 
     trade zone or within a customs bonded storage facility, or
       ``(B) holds an inventory position with respect to a taxable 
     fuel in such a terminal.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5244. PENALTIES FOR FAILURE TO REGISTER AND FAILURE TO 
                   REPORT.

       (a) Increased Penalty.--Subsection (a) of section 7272 
     (relating to penalty for failure to register) is amended by 
     inserting ``($10,000 in the case of a failure to register 
     under section 4101)'' after ``$50''.
       (b) Increased Criminal Penalty.--Section 7232 (relating to 
     failure to register under section 4101, false representations 
     of registration status, etc.) is amended by striking 
     ``$5,000'' and inserting ``$10,000''.
       (c) Assessable Penalty for Failure to Register.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5242 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6720. FAILURE TO REGISTER.

       ``(a) Failure to Register.--Every person who is required to 
     register under section 4101 and fails to do so shall pay a 
     penalty in addition to the tax (if any).
       ``(b) Amount of Penalty.--The amount of the penalty under 
     subsection (a) shall be--
       ``(1) $10,000 for each initial failure to register, and
       ``(2) $1,000 for each day thereafter such person fails to 
     register.
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5242 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6720. Failure to register.''.
       (d) Assessable Penalty for Failure to Report.--
       (1) In general.--Part II of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding at 
     the end the following new section:

     ``SEC. 6725. FAILURE TO REPORT INFORMATION UNDER SECTION 
                   4101.

       ``(a) In General.--In the case of each failure described in 
     subsection (b) by any person with respect to a vessel or 
     facility, such person shall pay a penalty of $10,000 in 
     addition to the tax (if any).
       ``(b) Failures Subject to Penalty.--For purposes of 
     subsection (a), the failures described in this subsection 
     are--
       ``(1) any failure to make a report under section 4101(d) on 
     or before the date prescribed therefor, and
       ``(2) any failure to include all of the information 
     required to be shown on such report or the inclusion of 
     incorrect information.

[[Page S1046]]

       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part II 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6725. Failure to report information under section 4101.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to failures pending or occurring after September 
     30, 2004.

     SEC. 5245. INFORMATION REPORTING FOR PERSONS CLAIMING CERTAIN 
                   TAX BENEFITS.

       (a) In General.--Subpart C of part III of subchapter A of 
     chapter 32 is amended by adding at the end the following new 
     section:

     ``SEC. 4104. INFORMATION REPORTING FOR PERSONS CLAIMING 
                   CERTAIN TAX BENEFITS.

       ``(a) In General.--The Secretary shall require any person 
     claiming tax benefits--
       ``(1) under the provisions of section 34, 40, and 40A to 
     file a return at the time such person claims such benefits 
     (in such manner as the Secretary may prescribe), and
       ``(2) under the provisions of section 4041(b)(2), 6426, or 
     6427(e) to file a monthly return (in such manner as the 
     Secretary may prescribe).
       ``(b) Contents of Return.--Any return filed under this 
     section shall provide such information relating to such 
     benefits and the coordination of such benefits as the 
     Secretary may require to ensure the proper administration and 
     use of such benefits.
       ``(c) Enforcement.--With respect to any person described in 
     subsection (a) and subject to registration requirements under 
     this title, rules similar to rules of section 4222(c) shall 
     apply with respect to any requirement under this section.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 32 is 
     amended by adding at the end the following new item:

``Sec. 4104. Information reporting for persons claiming certain tax 
              benefits.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                            PART V--IMPORTS

     SEC. 5251. TAX AT POINT OF ENTRY WHERE IMPORTER NOT 
                   REGISTERED.

       (a) Tax at Point of Entry Where Importer Not Registered.--
       (1) In general.--Subpart C of part III of subchapter A of 
     chapter 31, as amended by section 5245 of this Act, is 
     amended by adding at the end the following new section:

     ``SEC. 4105. TAX AT ENTRY WHERE IMPORTER NOT REGISTERED.

       ``(a) In General.--Any tax imposed under this part on any 
     person not registered under section 4101 for the entry of a 
     fuel into the United States shall be imposed at the time and 
     point of entry.
       ``(b) Enforcement of Assessment.--If any person liable for 
     any tax described under subsection (a) has not paid the tax 
     or posted a bond, the Secretary may--
       ``(1) seize the fuel on which the tax is due, or
       ``(2) detain any vehicle transporting such fuel,
     until such tax is paid or such bond is filed.
       ``(c) Levy of Fuel.--If no tax has been paid or no bond has 
     been filed within 5 days from the date the Secretary seized 
     fuel pursuant to subsection (b), the Secretary may sell such 
     fuel as provided under section 6336.''.
       (2) Conforming amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 31 of the 
     Internal Revenue Code of 1986, as amended by section 5245 of 
     this Act, is amended by adding after the last item the 
     following new item:

``Sec. 4105. Tax at entry where importer not registered.''.
       (b) Denial of Entry Where Tax Not Paid.--The Secretary of 
     Homeland Security is authorized to deny entry into the United 
     States of any shipment of a fuel which is taxable under 
     section 4081 of the Internal Revenue Code of 1986 if the 
     person entering such shipment fails to pay the tax imposed 
     under such section or post a bond in accordance with the 
     provisions of section 4105 of such Code.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5252. RECONCILIATION OF ON-LOADED CARGO TO ENTERED 
                   CARGO.

       (a) In General.--Subsection (a) of section 343 of the Trade 
     Act of 2002 is amended by inserting at the end the following 
     new paragraph:
       ``(4) In General.--Subject to paragraphs (2) and (3), not 
     later than 1 year after the enactment of this paragraph, the 
     Secretary of Homeland Security, together with the Secretary 
     of the Treasury, shall promulgate regulations providing for 
     the transmission to the Internal Revenue Service, through an 
     electronic data interchange system, of information pertaining 
     to cargo of taxable fuels (as defined in section 4083 of the 
     Internal Revenue Code of 1986) destined for importation into 
     the United States prior to such importation.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

                   PART VI--MISCELLANEOUS PROVISIONS

     SEC. 5261. TAX ON SALE OF DIESEL FUEL WHETHER SUITABLE FOR 
                   USE OR NOT IN A DIESEL-POWERED VEHICLE OR 
                   TRAIN.

       (a) In General.--Section 4083(a)(3) is amended--
       (1) by striking ``The term'' and inserting the following:
       ``(A) In general.--The term'', and
       (2) by inserting at the end the following new subparagraph:
       ``(B) Liquid sold as diesel fuel.--The term `diesel fuel' 
     includes any liquid which is sold as or offered for sale as a 
     fuel in a diesel-powered highway vehicle or a diesel-powered 
     train.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5262. MODIFICATION OF ULTIMATE VENDOR REFUND CLAIMS WITH 
                   RESPECT TO FARMING.

       (a) In General.--
       (1) Refunds.--Section 6427(l) is amended by adding at the 
     end the following new paragraph:
       ``(6) Registered vendors permitted to administer certain 
     claims for refund of diesel fuel and kerosene sold to 
     farmers.--
       ``(A) In general.--In the case of diesel fuel or kerosene 
     used on a farm for farming purposes (within the meaning of 
     section 6420(c)), paragraph (1) shall not apply to the 
     aggregate amount of such diesel fuel or kerosene if such 
     amount does not exceed 500 gallons (as determined under 
     subsection (i)(5)(A)(iii)).
       ``(B) Payment to ultimate vendor.--The amount which would 
     (but for subparagraph (A)) have been paid under paragraph (1) 
     with respect to any fuel shall be paid to the ultimate vendor 
     of such fuel, if such vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.
       (2) Filing of claims.--Section 6427(i) is amended by 
     inserting at the end the following new paragraph:
       ``(5) Special rule for vendor refunds with respect to 
     farmers.--
       ``(A) In general.--A claim may be filed under subsection 
     (l)(6) by any person with respect to fuel sold by such person 
     for any period--
       ``(i) for which $200 or more ($100 or more in the case of 
     kerosene) is payable under subsection (l)(6),
       ``(ii) which is not less than 1 week, and
       ``(iii) which is for not more than 500 gallons for each 
     farmer for which there is a claim.
     Notwithstanding subsection (l)(1), paragraph (3)(B) shall 
     apply to claims filed under the preceding sentence.
       ``(B) Time for filing claim.--No claim filed under this 
     paragraph shall be allowed unless filed on or before the last 
     day of the first quarter following the earliest quarter 
     included in the claim.''.
       (3) Conforming amendments.--
       (A) Section 6427(l)(5)(A) is amended to read as follows:
       ``(A) In general.--Paragraph (1) shall not apply to diesel 
     fuel or kerosene used by a State or local government.''.
       (B) The heading for section 6427(l)(5) is amended by 
     striking ``farmers and''.
       (b) Section 6427(i)(3) is amended--
       (1) by adding at the end of subparagraph (A) the following 
     new flush sentence:
     ``In the case of an electronic claim, this subparagraph shall 
     be applied without regard to clause (i).'', and
       (2) by striking ``20 days of the date of the filing of such 
     claim'' in subparagraph (B) and inserting ``45 days of the 
     date of the filing of such claim (20 days in the case of an 
     electronic claim)'', and
       (c) Effective Date.--The amendment made by this section 
     shall apply to fuels sold for nontaxable use after the date 
     of the enactment of this Act.

     SEC. 5263. TAXABLE FUEL REFUNDS FOR CERTAIN ULTIMATE VENDORS.

       (a) In General.--Paragraph (4) of section 6416(a) (relating 
     to abatements, credits, and refunds) is amended to read as 
     follows:
       ``(4) Registered ultimate vendor to administer credits and 
     refunds of gasoline tax.--
       ``(A) In general.--For purposes of this subsection, if an 
     ultimate vendor purchases any gasoline on which tax imposed 
     by section 4081 has been paid and sells such gasoline to an 
     ultimate purchaser described in subparagraph (C) or (D) of 
     subsection (b)(2) (and such gasoline is for a use described 
     in such subparagraph), such ultimate vendor shall be treated 
     as the person (and the only person) who paid such tax, but 
     only if such ultimate vendor is registered under section 
     4101. For purposes of this subparagraph, if the sale of 
     gasoline is made by means of a credit card, the person 
     extending the credit to the ultimate purchaser shall be 
     deemed to be the ultimate vendor.
       ``(B) Timing of claims.--The procedure and timing of any 
     claim under subparagraph (A) shall be the same as for claims 
     under section 6427(i)(4), except that the rules of section 
     6427(i)(3)(B) regarding electronic claims shall not apply 
     unless the ultimate vendor has certified to the Secretary for 
     the most recent quarter of the taxable year that all ultimate 
     purchasers of the vendor are certified and entitled to a 
     refund under subparagraph (C) or (D) of subsection (b)(2).''.
       (b) Credit Card Purchases of Diesel Fuel or Kerosene by 
     State and Local Governments.--Section 6427(l)(5)(C) (relating 
     to nontaxable uses of diesel fuel, kerosene, and aviation 
     fuel), as amended by section 5252 of this Act, is amended by 
     adding at the end

[[Page S1047]]

     the following new sentence: ``For purposes of this 
     subparagraph, if the sale of diesel fuel or kerosene is made 
     by means of a credit card, the person extending the credit to 
     the ultimate purchaser shall be deemed to be the ultimate 
     vendor.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5264. TWO-PARTY EXCHANGES.

       (a) In General.--Subpart C of part III of subchapter A of 
     chapter 32, as amended by section 5251 of this Act, is 
     amended by adding at the end the following new section:

     ``SEC. 4106. TWO-PARTY EXCHANGES.

       ``(a) In General.--In a two-party exchange, the delivering 
     person shall not be liable for the tax imposed under of 
     section 4081(a)(1)(A)(ii).
       ``(b) Two-Party Exchange.--The term `two-party exchange' 
     means a transaction, other than a sale, in which taxable fuel 
     is transferred from a delivering person registered under 
     section 4101 as a taxable fuel registrant to a receiving 
     person who is so registered where all of the following occur:
       ``(1) The transaction includes a transfer from the 
     delivering person, who holds the inventory position for 
     taxable fuel in the terminal as reflected in the records of 
     the terminal operator.
       ``(2) The exchange transaction occurs before or 
     contemporaneous with completion of removal across the rack 
     from the terminal by the receiving person.
       ``(3) The terminal operator in its books and records treats 
     the receiving person as the person that removes the product 
     across the terminal rack for purposes of reporting the 
     transaction to the Secretary.
       ``(4) The transaction is the subject of a written 
     contract.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 32, as 
     amended by section 5251 of this Act, is amended by adding 
     after the last item the following new item:

``Sec. 4106. Two-party exchanges.''.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5265. MODIFICATIONS OF TAX ON USE OF CERTAIN VEHICLES.

       (a) No Proration of Tax Unless Vehicle Is Destroyed or 
     Stolen.--
       (1) In general.--Section 4481(c) (relating to proration of 
     tax) is amended to read as follows:
       ``(c) Proration of Tax Where Vehicle Sold, Destroyed, or 
     Stolen.--
       ``(1) In general.--If in any taxable period a highway motor 
     vehicle is sold, destroyed, or stolen before the first day of 
     the last month in such period and not subsequently used 
     during such taxable period, the tax shall be reckoned 
     proportionately from the first day of the month in such 
     period in which the first use of such highway motor vehicle 
     occurs to and including the last day of the month in which 
     such highway motor vehicle was sold, destroyed, or stolen.
       ``(2) Destroyed.--For purposes of paragraph (1), a highway 
     motor vehicle is destroyed if such vehicle is damaged by 
     reason of an accident or other casualty to such an extent 
     that it is not economic to rebuild.''.
       (2) Conforming amendments.--
       (A) Section 6156 (relating to installment payment of tax on 
     use of highway motor vehicles) is repealed.
       (B) The table of sections for subchapter A of chapter 62 is 
     amended by striking the item relating to section 6156.
       (b) Display of Tax Certificate.--Paragraph (2) of section 
     4481(d) (relating to one tax liability for period) is amended 
     to read as follows:
       ``(2) Display of tax certificate.--Every taxpayer which 
     pays the tax imposed under this section with respect to a 
     highway motor vehicle shall, not later than 1 month after the 
     due date of the return of tax with respect to each taxable 
     period, receive and display on such vehicle an electronic 
     identification device prescribed by the Secretary.''.
       (c) Electronic filing.--Section 4481, as amended by section 
     5001 of this Act, is amended by redesignating subsection (e) 
     as subsection (f) and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Electronic filing.--Any taxpayer who files a return 
     under this section with respect to 25 or more vehicles for 
     any taxable period shall file such return electronically.''.
       (d) Repeal of reduction in tax for certain trucks.--Section 
     4483 of the Internal Revenue Code of 1986 is amended by 
     striking subsection (f).
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable 
     periods beginning after the date of the enactment of this 
     Act.
       (2) Subsection (b).--The amendment made by subsection (b) 
     shall take effect on October 1, 2005.

     SEC. 5266. DEDICATION OF REVENUES FROM CERTAIN PENALTIES TO 
                   THE HIGHWAY TRUST FUND.

       (a) In General.--Subsection (b) of section 9503 (relating 
     to transfer to Highway Trust Fund of amounts equivalent to 
     certain taxes), as amended by section 5001 of this Act, is 
     amended by redesignating paragraph (5) as paragraph (6) and 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Certain penalties.--There are hereby appropriated to 
     the Highway Trust Fund amounts equivalent to the penalties 
     assessed under sections 6715, 6715A, 6717, 6718, 6719, 6720, 
     6725, 7232, and 7272 (but only with regard to penalties under 
     such section related to failure to register under section 
     4101).''.
       (b) Conforming Amendments.--
       (1) The heading of subsection (b) of section 9503 is 
     amended by inserting ``and Penalties'' after ``Taxes''.
       (2) The heading of paragraph (1) of section 9503(b) is 
     amended by striking ``In general'' and inserting ``Certain 
     taxes''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to penalties assessed after October 1, 2004.

     SEC. 5267. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF 
                   FUEL TO MOTOR VEHICLES REMOVED FROM UNITED 
                   STATES.

       (a) In General.--Section 4221(d)(2) (defining export) is 
     amended by adding at the end the following new sentence: 
     ``Such term does not include the delivery of a taxable fuel 
     (as defined in section 4083(a)(1)) into a fuel tank of a 
     motor vehicle which is shipped or driven out of the United 
     States.''.
       (b) Conforming Amendments.--
       (1) Section 4041(g) (relating to other exemptions) is 
     amended by adding at the end the following new sentence: 
     ``Paragraph (3) shall not apply to the sale for delivery of a 
     liquid into a fuel tank of a motor vehicle which is shipped 
     or driven out of the United States.''.
       (2) Clause (iv) of section 4081(a)(1)(A) (relating to tax 
     on removal, entry, or sale) is amended by inserting ``or at a 
     duty-free sales enterprise (as defined in section 555(b)(8) 
     of the Tariff Act of 1930)'' after ``section 4101''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales or deliveries made after the date of the 
     enactment of this Act.

                     PART VII--TOTAL ACCOUNTABILITY

     SEC. 5271. TOTAL ACCOUNTABILITY.

       (a) Taxation of Reportable Liquids.--
       (1) In general.--Section 4081(a), as amended by this Act, 
     is amended--
       (A) by inserting ``or reportable liquid'' after ``taxable 
     fuel'' each place it appears, and
       (B) by inserting ``such liquid'' after ``such fuel'' in 
     paragraph (1)(A)(iv).
       (2) Rate of tax.--Subparagraph (A) of section 4081(a)(2), 
     as amended by section 5211 of this Act, is amended by 
     striking ``and'' at the end of clause (iii), by striking the 
     period at the end of clause (iv) and inserting ``, and'', and 
     by adding at the end the following new clause:
       ``(v) in the case of reportable liquids, the rate 
     determined under section 4083(c)(2).''.
       (3) Exemption.--Section 4081(a)(1) is amended by adding at 
     the end the following new subparagraph:
       ``(C) Exemption for registered transfers of reportable 
     liquids.--The tax imposed by this paragraph shall not apply 
     to any removal, entry, or sale of a reportable liquid if--
       ``(i) such removal, entry, or sale is to a registered 
     person who certifies that such liquid will not be used as a 
     fuel or in the production of a fuel, or
       ``(ii) the sale is to the ultimate purchaser of such 
     liquid.''.
       (4) Reportable liquids.--Section 4083, as amended by this 
     Act, is amended by redesignating subsections (c) and (d) (as 
     redesignated by section 5211 of this Act) as subsections (d) 
     and (e), respectively, and by inserting after subsection (b) 
     the following new section:
       ``(c) Reportable liquid.--For purposes of this subpart--
       ``(1) In general.--The term `reportable liquid' means any 
     petroleum-based liquid other than a taxable fuel.
       ``(2) Taxation.--
       ``(A) Gasoline blend stocks and additives.--Gasoline blend 
     stocks and additives which are reportable liquids (as defined 
     in paragraph (1)) shall be subject to the rate of tax under 
     clause (i) of section 4081(a)(2)(A).
       ``(B) Other reportable liquids.--Any reportable liquid (as 
     defined in paragraph (1)) not described in subparagraph (A) 
     shall be subject to the rate of tax under clause (iii) of 
     section 4081(a)(2)(A).''.
       (5) Conforming amendments.--
       (A) Section 4081(e) is amended by inserting ``or reportable 
     liquid'' after ``taxable fuel''.
       (B) Section 4083(d) (relating to certain use defined as 
     removal), as redesignated by paragraph (4), is amended by 
     inserting ``or reportable liquid'' after ``taxable fuel''.
       (C) Section 4083(e)(1) (relating to administrative 
     authority), as redesignated by paragraph (4), is amended--
       (i) in subparagraph (A)--

       (I) by inserting ``or reportable liquid'' after ``taxable 
     fuel'', and
       (II) by inserting ``or such liquid'' after ``such fuel'' 
     each place it appears, and

       (ii) in subparagraph (B), by inserting ``or any reportable 
     liquid'' after ``any taxable fuel''.
       (D) Section 4101(a)(2), as added by section 5243 of this 
     Act, is amended by inserting ``or a reportable liquid'' after 
     ``taxable fuel''.
       (E) Section 4101(a)(3), as added by section 5242 of this 
     Act and redesignated by section 5243 of this Act, is amended 
     by inserting ``or any reportable liquid'' before the period 
     at the end.
       (F) Section 4102 is amended by inserting ``or any 
     reportable liquid'' before the period at the end.
       (G)(i) Section 6718, as added by section 5241 of this Act, 
     is amended--
       (I) in subsection (a), by inserting ``or any reportable 
     liquid (as defined in section 4083(c)(1))'' after `` section 
     4083(a)(1))'', and

[[Page S1048]]

       (II) in the heading, by inserting ``or reportable liquids'' 
     after ``taxable fuel''.
       (ii) The item relating to section 6718 in table of sections 
     for part I of subchapter B of chapter 68, as added by section 
     5241 of this Act, is amended by inserting ``or reportable 
     liquids'' after ``taxable fuels''.
       (H) Section 6427(h) is amended to read as follows:
       ``(h) Gasoline Blend Stocks or Additives and Reportable 
     Liquids.--Except as provided in subsection (k)--
       ``(1) if any gasoline blend stock or additive (within the 
     meaning of section 4083(a)(2)) is not used by any person to 
     produce gasoline and such person establishes that the 
     ultimate use of such gasoline blend stock or additive is not 
     to produce gasoline, or
       ``(2) if any reportable liquid (within the meaning of 
     section 4083(c)(1)) is not used by any person to produce a 
     taxable fuel and such person establishes that the ultimate 
     use of such reportable liquid is not to produce a taxable 
     fuel,
     then the Secretary shall pay (without interest) to such 
     person an amount equal to the aggregate amount of the tax 
     imposed on such person with respect to such gasoline blend 
     stock or additive or such reportable fuel.''.
       (I) Section 7232, as amended by this Act, is amended by 
     inserting ``or reportable liquid (within the meaning of 
     section 4083(c)(1))'' after ``section 4083)''.
       (J) Section 343 of the Trade Act of 2002, as amended by 
     section 5252 of this Act, is amended by inserting ``and 
     reportable liquids (as defined in section 4083(c)(1) of such 
     Code)'' after ``Internal Revenue Code of 1986)''.
       (b) Dyed Diesel.--Section 4082(a) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``and'', and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) which is removed, entered, or sold by a person 
     registered under section 4101.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to reportable liquids (as defined in section 
     4083(c) of the Internal Revenue Code) and fuel sold or used 
     after September 30, 2004.

     SEC. 5272. EXCISE TAX REPORTING.

       (a) In General.--Part II of subchapter A of chapter 61 is 
     amended by adding at the end the following new subpart:


                   ``Subpart E--Excise Tax Reporting

     ``SEC. 6025. RETURNS RELATING TO FUEL TAXES.

       ``(a) In General.--The Secretary shall require any person 
     liable for the tax imposed under Part III of subchapter A of 
     chapter 32 to file a return of such tax on a monthly basis.
       ``(b) Information Included with Return.--The Secretary 
     shall require any person filing a return under subsection (a) 
     to provide information regarding any refined product (whether 
     or not such product is taxable under this title) removed from 
     a terminal during the period for which such return 
     applies.''.
       (b) Conforming Amendment.--The table of parts for 
     subchapter A of chapter 61 is amended by adding at the end 
     the following new item:

``Subpart E--Excise Tax Reporting''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after September 30, 2004.

     SEC. 5273. INFORMATION REPORTING.

       (a) In General.--Section 4101(d) is amended by adding at 
     the end the following new flush sentence:
     ``The Secretary shall require reporting under the previous 
     sentence with respect to taxable fuels removed, entered, or 
     transferred from any refinery, pipeline, or vessel which is 
     registered under this section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply on October 1, 2004.

               Subtitle D--Definition of Highway Vehicle

     SEC. 5301. EXEMPTION FROM CERTAIN EXCISE TAXES FOR MOBILE 
                   MACHINERY.

       (a) Exemption From Tax on Heavy Trucks and Trailers Sold at 
     Retail.--
       (1) In general.--Section 4053 (relating to exemptions) is 
     amended by adding at the end the following new paragraph:
       ``(8) Mobile machinery.--Any vehicle which consists of a 
     chassis--
       ``(A) to which there has been permanently mounted (by 
     welding, bolting, riveting, or other means) machinery or 
     equipment to perform a construction, manufacturing, 
     processing, farming, mining, drilling, timbering, or similar 
     operation if the operation of the machinery or equipment is 
     unrelated to transportation on or off the public highways,
       ``(B) which has been specially designed to serve only as a 
     mobile carriage and mount (and a power source, where 
     applicable) for the particular machinery or equipment 
     involved, whether or not such machinery or equipment is in 
     operation, and
       ``(C) which, by reason of such special design, could not, 
     without substantial structural modification, be used as a 
     component of a vehicle designed to perform a function of 
     transporting any load other than that particular machinery or 
     equipment or similar machinery or equipment requiring such a 
     specially designed chassis.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect on the day after the date of the enactment 
     of this Act.
       (b) Exemption From Tax on Use of Certain Vehicles.--
       (1) In general.--Section 4483 (relating to exemptions) is 
     amended by redesignating subsection (g) as subsection (h) and 
     by inserting after subsection (f) the following new 
     subsection:
       ``(g) Exemption for Mobile Machinery.--No tax shall be 
     imposed by section 4481 on the use of any vehicle described 
     in section 4053(8).''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on the day after the date of the enactment 
     of this Act.
       (d) Exemption From Fuel Taxes.--
       (1) In general.--Section 6421(e)(2) (defining off-highway 
     business use) is amended by adding at the end the following 
     new subparagraph:
       ``(C) Uses in mobile machinery.--
       ``(i) In general.--The term `off-highway business use' 
     shall include any use in a vehicle which meets the 
     requirements described in clause (ii).
       ``(ii) Requirements for mobile machinery.--The requirements 
     described in this clause are--

       ``(I) the design-based test, and
       ``(II) the use-based test.

       ``(iii) Design-based test.--For purposes of clause (ii)(I), 
     the design-based test is met if the vehicle consists of a 
     chassis--

       ``(I) to which there has been permanently mounted (by 
     welding, bolting, riveting, or other means) machinery or 
     equipment to perform a construction, manufacturing, 
     processing, farming, mining, drilling, timbering, or similar 
     operation if the operation of the machinery or equipment is 
     unrelated to transportation on or off the public highways,
       ``(II) which has been specially designed to serve only as a 
     mobile carriage and mount (and a power source, where 
     applicable) for the particular machinery or equipment 
     involved, whether or not such machinery or equipment is in 
     operation, and
       ``(III) which, by reason of such special design, could not, 
     without substantial structural modification, be used as a 
     component of a vehicle designed to perform a function of 
     transporting any load other than that particular machinery or 
     equipment or similar machinery or equipment requiring such a 
     specially designed chassis.

       ``(iv) Use-based test.--For purposes of clause (ii)(II), 
     the use-based test is met if the use of the vehicle on public 
     highways was less than 5,000 miles during the taxpayer's 
     taxable year.
       ``(v) Special rule for use by certain tax-exempt 
     organizations.--In the case of any use in a vehicle by an 
     organization which is described in section 501(c) and exempt 
     from tax under section 501(a), clause (ii) shall be applied 
     without regard to subclause (II) thereof.''.
       (2) Annual refund of tax paid.--Section 6427(i)(2) 
     (relating to exceptions) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Nonapplication of paragraph.--This paragraph shall 
     not apply to any fuel used in any off-highway business use 
     described in section 6421(e)(2)(C).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5302. MODIFICATION OF DEFINITION OF OFF-HIGHWAY VEHICLE.

       (a) In General.--Section 7701(a) (relating to definitions) 
     is amended by adding at the end the following new paragraph:
       ``(48) Off-highway vehicles.--
       ``(A) Off-highway transportation vehicles.--
       ``(i) In general.--A vehicle shall not be treated as a 
     highway vehicle if such vehicle is specially designed for the 
     primary function of transporting a particular type of load 
     other than over the public highway and because of this 
     special design such vehicle's capability to transport a load 
     over the public highway is substantially limited or impaired.
       ``(ii) Determination of vehicle's design.--For purposes of 
     clause (i), a vehicle's design is determined solely on the 
     basis of its physical characteristics.
       ``(iii) Determination of substantial limitation or 
     impairment.--For purposes of clause (i), in determining 
     whether substantial limitation or impairment exists, account 
     may be taken of factors such as the size of the vehicle, 
     whether such vehicle is subject to the licensing, safety, and 
     other requirements applicable to highway vehicles, and 
     whether such vehicle can transport a load at a sustained 
     speed of at least 25 miles per hour. It is immaterial that a 
     vehicle can transport a greater load off the public highway 
     than such vehicle is permitted to transport over the public 
     highway.
       ``(B) Nontransportation trailers and semitrailers.--A 
     trailer or semitrailer shall not be treated as a highway 
     vehicle if it is specially designed to function only as an 
     enclosed stationary shelter for the carrying on of an off-
     highway function at an off-highway site.''.
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendment made by this section shall take effect on the date 
     of the enactment of this Act.
       (2) Fuel taxes.--With respect to taxes imposed under 
     subchapter B of chapter 31 and part III of subchapter A of 
     chapter 32, the amendment made by this section shall apply

[[Page S1049]]

     to taxable periods beginning after the date of the enactment 
     of this Act.

            Subtitle E--Excise Tax Reform and Simplification

                      PART I--HIGHWAY EXCISE TAXES

     SEC. 5401. DEDICATION OF GAS GUZZLER TAX TO HIGHWAY TRUST 
                   FUND.

       (a) In General.--Section 9503(b)(1) (relating to transfer 
     to Highway Trust Fund of amounts equivalent to certain taxes) 
     is amended by redesignating subparagraphs (C), (D), and (E) 
     as subparagraphs (D), (E), and (F), respectively, and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) section 4064 (relating to gas guzzler tax),''.
       (b) Uniform Application of Tax.--Subparagraph (A) of 
     section 4064(b)(1) (defining automobile) is amended by 
     striking the second sentence.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5402. REPEAL CERTAIN EXCISE TAXES ON RAIL DIESEL FUEL 
                   AND INLAND WATERWAY BARGE FUELS.

       (a) Taxes on Trains.--
       (1) In general.--Subparagraph (A) of section 4041(a)(1) is 
     amended by striking ``or a diesel-powered train'' each place 
     it appears and by striking ``or train''.
       (2) Conforming amendments.--
       (A) Subparagraph (C) of section 4041(a)(1), as amended by 
     section 5001 of this Act, is amended by striking clause (ii) 
     and by redesignating clause (iii) as clause (ii).
       (B) Subparagraph (C) of section 4041(b)(1) is amended by 
     striking all that follows ``section 6421(e)(2)'' and 
     inserting a period.
       (C) Subsection (d) of section 4041 is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Diesel fuel used in trains.--There is hereby imposed 
     a tax of 0.1 cent per gallon on any liquid other than 
     gasoline (as defined in section 4083)--
       ``(A) sold by any person to an owner, lessee, or other 
     operator of a diesel-powered train for use as a fuel in such 
     train, or
       ``(B) used by any person as a fuel in a diesel-powered 
     train unless there was a taxable sale of such fuel under 
     subparagraph (A).
     No tax shall be imposed by this paragraph on the sale or use 
     of any liquid if tax was imposed on such liquid under section 
     4081.''.
       (D) Subsection (f) of section 4082 is amended by striking 
     ``section 4041(a)(1)'' and inserting ``subsections (d)(3) and 
     (a)(1) of section 4041, respectively''.
       (E) Subparagraphs (A) and (B) of section 4083(a)(3), as 
     amended by section 5261 of this Act, are amended by striking 
     ``or a diesel-powered train''.
       (F) Paragraph (3) of section 6421(f) is amended to read as 
     follows:
       ``(3) Gasoline used in trains.--In the case of gasoline 
     used as a fuel in a train, this section shall not apply with 
     respect to the Leaking Underground Storage Tank Trust Fund 
     financing rate under section 4081.''.
       (G) Paragraph (3) of section 6427(l) is amended to read as 
     follows:
       ``(3) Refund of certain taxes on fuel used in diesel-
     powered trains.--For purposes of this subsection, the term 
     `nontaxable use' includes fuel used in a diesel-powered 
     train. The preceding sentence shall not apply to the tax 
     imposed by section 4041(d) and the Leaking Underground 
     Storage Tank Trust Fund financing rate under section 4081 
     except with respect to fuel sold for exclusive use by a State 
     or any political subdivision thereof.''.
       (b) Fuel Used on Inland Waterways.--
       (1) In general.--Paragraph (1) of section 4042(b) is 
     amended by adding ``and'' at the end of subparagraph (A), by 
     striking ``, and'' at the end of subparagraph (B) and 
     inserting a period, and by striking subparagraph (C).
       (2) Conforming amendment.--Paragraph (2) of section 4042(b) 
     is amended by striking subparagraph (C).
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                     PART II--AQUATIC EXCISE TAXES

     SEC. 5411. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND 
                   TRANSFORMATION OF SPORT FISH RESTORATION 
                   ACCOUNT.

       (a) Simplification of Funding for Boat Safety Account.--
       (1) In general.--Section 9503(c)(3) (relating to transfers 
     from Trust Fund for motorboat fuel taxes), as redesignated by 
     section 5002 of this Act, is amended--
       (A) by striking ``Fund--'' and all that follows through 
     ``shall be transferred'' in subparagraph (B) and inserting 
     ``Fund which is attributable to motorboat fuel taxes shall be 
     transferred'', and
       (B) by striking subparagraph (A), and
       (C) by redesignating subparagraphs (B) through (E) as 
     subparagraphs (A) through (D), respectively.
       (2) Conforming amendments.--
       (A) Section 9503(b)(4) is amended by striking subparagraph 
     (D).
       (B) Subparagraph (B) of section 9503(c)(3), as redesignated 
     by section 5002 of this Act and subsection (a)(3), is 
     amended--
       (i) by striking ``account'' in the heading and inserting 
     ``trust fund'',
       (ii) by striking ``or (B)'' in clause (ii), and
       (iii) by striking ``Account in the Aquatic Resources''.
       (C) Subparagraph (C) of section 9503(c)(3), as redesignated 
     by section 5002 of this Act and subsection (a)(3), is amended 
     by striking ``, but only to the extent such taxes are 
     deposited into the Highway Trust Fund''.
       (D) Paragraph (4) of section 9503(c), as redesignated by 
     section 5002 of this Act, is amended--
       (i) by striking ``Account in the Aquatic Resources'' in 
     subparagraph (A), and
       (ii) by striking ``, but only to the extent such taxes are 
     deposited into the Highway Trust Fund'' in subparagraph (B).
       (b) Merging of Accounts.--
       (1) In general.--Subsection (a) of section 9504 is amended 
     to read as follows:
       ``(a) Creation of Trust Fund.--There is hereby established 
     in the Treasury of the United States a trust fund to be known 
     as the `Sport Fish Restoration Trust Fund'. Such Trust Fund 
     shall consist of such amounts as may be appropriated, 
     credited, or paid to it as provided in this section, section 
     9503(c)(3), section 9503(c)(4), or section 9602(b).''.
       (2) Conforming amendments.--
       (A) Subsection (b) of section 9504 is amended--
       (i) by striking ``Account'' in the heading and inserting 
     ``Trust Fund'',
       (ii) by striking ``Account'' both places it appears in 
     paragraphs (1) and (2) and inserting ``Trust Fund'', and
       (iii) by striking ``account'' both places it appears in the 
     headings for paragraphs (1) and (2) and inserting ``trust 
     fund''.
       (B) Subsection (d) of section 9504, as amended by section 
     5001 of this Act, is amended--
       (i) by striking ``Aquatic Resources'' in the heading,
       (ii) by striking ``any Account in the Aquatic Resources'' 
     in paragraph (1) and inserting ``the Sports Fish 
     Restoration'', and
       (iii) by striking ``any such Account'' in paragraph (1) and 
     inserting ``such Trust Fund''.
       (C) Subsection (e) of section 9504, as amended by section 
     5002 of this Act, is amended by striking ``Boat Safety 
     Account and Sport Fish Restoration Account'' and inserting 
     ``Sport Fish Restoration Trust Fund''.
       (D) Section 9504 is amended by striking ``AQUATIC 
     RESOURCES'' in the heading and inserting ``SPORT FISH 
     RESTORATION''.
       (E) The item relating to section 9504 in the table of 
     sections for subchapter A of chapter 98 is amended by 
     striking ``aquatic resources'' and inserting ``sport fish 
     restoration''.
       (c) Phaseout of Boat Safety Account.--Subsection (c) of 
     section 9504 is amended to read as follows:
       ``(c) Expenditures From Boat Safety Account.--Amounts 
     remaining in the Boat Safety Account on October 1, 2004, and 
     amounts thereafter credited to the Account under section 
     9602(b), shall be available, as provided by appropriation 
     Acts, for making expenditures before October 1, 2009, to 
     carry out the purposes of section 13106 of title 46, United 
     States Code (as in effect on the date of the enactment of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004).''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5412. EXEMPTION OF LED DEVICES FROM SONAR DEVICES 
                   SUITABLE FOR FINDING FISH.

       (a) In General.--Section 4162(b) (defining sonar device 
     suitable for finding fish) is amended by striking ``or'' at 
     the end of paragraph (3), by striking the period at the end 
     of paragraph (4) and inserting ``, or'', and by adding at the 
     end the following new paragraph:
       ``(5) an LED display.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after September 30, 2004.

     SEC. 5413. REPEAL OF HARBOR MAINTENANCE TAX ON EXPORTS.

       (a) In General.--Subsection (d) of section 4462 (relating 
     to definitions and special rules) is amended to read as 
     follows:
       ``(d) Nonapplicability of Tax to Exports.--The tax imposed 
     by section 4461(a) shall not apply to any port use with 
     respect to any commercial cargo to be exported from the 
     United States.''.
       (b) Conforming Amendments.--
       (1) Section 4461(c)(1) is amended by adding ``or'' at the 
     end of subparagraph (A), by striking subparagraph (B), and by 
     redesignating subparagraph (C) as subparagraph (B).
       (2) Section 4461(c)(2) is amended by striking ``imposed--'' 
     and all that follows through ``in any other case,'' and 
     inserting ``imposed''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect before, on, and after the date of the 
     enactment of this Act.

     SEC. 5414. CAP ON EXCISE TAX ON CERTAIN FISHING EQUIPMENT.

       (a) In General.--Paragraph (1) of section 4161(a) (relating 
     to sport fishing equipment) is amended to read as follows:
       ``(1) Imposition of tax.--
       ``(A) In general.--There is hereby imposed on the sale of 
     any article of sport fishing equipment by the manufacturer, 
     producer, or importer a tax equal to 10 percent of the price 
     for which so sold.
       ``(B) Limitation on tax imposed on fishing rods and 
     poles.--The tax imposed by subparagraph (A) on any fishing 
     rod or pole shall not exceed $10.''.
       (b) Conforming Amendments.--Section 4161(a)(2) is amended 
     by striking ``paragraph

[[Page S1050]]

     (1)'' both places it appears and inserting ``paragraph 
     (1)(A)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after September 30, 2004.

     SEC. 5415. REDUCTION IN RATE OF TAX ON PORTABLE AERATED BAIT 
                   CONTAINERS.

       (a) In General.--Section 4161(a)(2)(A) (relating to 3 
     percent rate of tax for electric outboard motors and sonar 
     devices suitable for finding fish) is amended by inserting 
     ``or a portable aerated bait container'' after ``fish''.
       (b) Conforming Amendment.--The heading of section 
     4161(a)(2) is amended by striking ``electric outboard motors 
     and sonar devices suitable for finding fish'' and inserting 
     ``certain sport fishing equipment''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after September 30, 2004.

                     PART III--AERIAL EXCISE TAXES

     SEC. 5421. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR 
                   AGRICULTURAL AERIAL APPLICATORS AND EXEMPTION 
                   FOR FIXED-WING AIRCRAFT ENGAGED IN FORESTRY 
                   OPERATIONS.

       (a) No Waiver by Farm Owner, Tenant, or Operator 
     Necessary.--Subparagraph (B) of section 6420(c)(4) (relating 
     to certain farming use other than by owner, etc.) is amended 
     to read as follows:
       ``(B) if the person so using the gasoline is an aerial or 
     other applicator of fertilizers or other substances and is 
     the ultimate purchaser of the gasoline, then subparagraph (A) 
     of this paragraph shall not apply and the aerial or other 
     applicator shall be treated as having used such gasoline on a 
     farm for farming purposes.''.
       (b) Exemption Includes Fuel Used Between Airfield and 
     Farm.--Section 6420(c)(4), as amended by subsection (a), is 
     amended by adding at the end the following new flush 
     sentence:
     ``For purposes of this paragraph, in the case of an aerial 
     applicator, gasoline shall be treated as used on a farm for 
     farming purposes if the gasoline is used for the direct 
     flight between the airfield and 1 or more farms.''.
       (c) Exemption from Tax on Air Transportation of Persons for 
     Forestry Purposes Extended to Fixed-Wing Aircraft.--
     Subsection (f) of section 4261 (relating to tax on air 
     transportation of persons) is amended to read as follows:
       ``(f) Exemption for Certain Uses.--No tax shall be imposed 
     under subsection (a) or (b) on air transportation--
       ``(1) by helicopter for the purpose of transporting 
     individuals, equipment, or supplies in the exploration for, 
     or the development or removal of, hard minerals, oil, or gas, 
     or
       ``(2) by helicopter or by fixed-wing aircraft for the 
     purpose of the planting, cultivation, cutting, or 
     transportation of, or caring for, trees (including logging 
     operations),
     but only if the helicopter or fixed-wing aircraft does not 
     take off from, or land at, a facility eligible for assistance 
     under the Airport and Airway Development Act of 1970, or 
     otherwise use services provided pursuant to section 44509 or 
     44913(b) or subchapter I of chapter 471 of title 49, United 
     States Code, during such use. In the case of helicopter 
     transportation described in paragraph (1), this subsection 
     shall be applied by treating each flight segment as a 
     distinct flight.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel use or air transportation after the date 
     of the enactment of this Act.

     SEC. 5422. MODIFICATION OF RURAL AIRPORT DEFINITION.

       (a) In General.--Section 4261(e)(1)(B) (defining rural 
     airport) is amended--
       (1) by inserting ``(in the case of any airport described in 
     clause (ii)(III), on flight segments of at least 100 miles)'' 
     after ``by air'' in clause (i), and
       (2) by striking the period at the end of subclause (II) of 
     clause (ii) and inserting ``, or'', and by adding at the end 
     of clause (ii) the following new subclause:

       ``(III) is not connected by paved roads to another 
     airport.''.

       (b) Effective Date.--The amendments made by this section 
     shall take effect on April 1, 2004.

     SEC. 5423. EXEMPTION FROM TICKET TAXES FOR TRANSPORTATION 
                   PROVIDED BY SEAPLANES.

       (a) In General.--Section 4261 (relating to imposition of 
     tax) is amended by redesignating subsection (i) as subsection 
     (j) and by inserting after subsection (h) the following new 
     subsection:
       ``(i) Exemption for Seaplanes.--No tax shall be imposed by 
     this section or section 4271 on any air transportation by a 
     seaplane with respect to any segment consisting of a takeoff 
     from, and a landing on, water, but only if the places at 
     which such takeoff and landing occur have not received and 
     are not receiving financial assistance from the Airport and 
     Airways Trust Fund.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transportation beginning after March 31, 2004.

     SEC. 5424. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES ON 
                   AIR TRANSPORTATION.

       (a) In General.--Section 4281 (relating to small aircraft 
     on nonestablished lines) is amended by adding at the end the 
     following new sentence: ``For purposes of this section, an 
     aircraft shall not be considered as operated on an 
     established line if such aircraft is operated on a flight the 
     sole purpose of which is sightseeing.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to transportation beginning on or 
     after the date of the enactment of this Act, but shall not 
     apply to any amount paid before such date for such 
     transportation.

                PART IV--ALCOHOLIC BEVERAGE EXCISE TAXES

     SEC. 5431. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON PRODUCERS 
                   AND MARKETERS OF ALCOHOLIC BEVERAGES.

       (a) Repeal of Occupational Taxes.--
       (1) In general.--The following provisions of part II of 
     subchapter A of chapter 51 (relating to occupational taxes) 
     are hereby repealed:
       (A) Subpart A (relating to proprietors of distilled spirits 
     plants, bonded wine cellars, etc.).
       (B) Subpart B (relating to brewer).
       (C) Subpart D (relating to wholesale dealers) (other than 
     sections 5114 and 5116).
       (D) Subpart E (relating to retail dealers) (other than 
     section 5124).
       (E) Subpart G (relating to general provisions) (other than 
     sections 5142, 5143, 5145, and 5146).
       (2) Nonbeverage domestic drawback.--Section 5131 is amended 
     by striking ``, on payment of a special tax per annum,''.
       (3) Industrial use of distilled spirits.--Section 5276 is 
     hereby repealed.
       (b) Conforming Amendments.--
       (1)(A) The heading for part II of subchapter A of chapter 
     51 and the table of subparts for such part are amended to 
     read as follows:

                  ``PART II--MISCELLANEOUS PROVISIONS

``Subpart A. Manufacturers of stills.
``Subpart B. Nonbeverage domestic drawback claimants.
``Subpart C. Recordkeeping by dealers.
``Subpart D. Other provisions.''.
       (B) The table of parts for such subchapter A is amended by 
     striking the item relating to part II and inserting the 
     following new item:

``Part II. Miscellaneous provisions.''.
       (2) Subpart C of part II of such subchapter (relating to 
     manufacturers of stills) is redesignated as subpart A.
       (3)(A) Subpart F of such part II (relating to nonbeverage 
     domestic drawback claimants) is redesignated as subpart B and 
     sections 5131 through 5134 are redesignated as sections 5111 
     through 5114, respectively.
       (B) The table of sections for such subpart B, as so 
     redesignated, is amended--
       (i) by redesignating the items relating to sections 5131 
     through 5134 as relating to sections 5111 through 5114, 
     respectively, and
       (ii) by striking ``and rate of tax'' in the item relating 
     to section 5111, as so redesignated.
       (C) Section 5111, as redesignated by subparagraph (A), is 
     amended--
       (i) by striking ``and rate of tax'' in the section heading,
       (ii) by striking the subsection heading for subsection (a), 
     and
       (iii) by striking subsection (b).
       (4) Part II of subchapter A of chapter 51 is amended by 
     adding after subpart B, as redesignated by paragraph (3), the 
     following new subpart:

                 ``Subpart C--Recordkeeping by Dealers

``Sec. 5121. Recordkeeping by wholesale dealers.
``Sec. 5122. Recordkeeping by retail dealers.
``Sec. 5123. Preservation and inspection of records, and entry of 
              premises for inspection.''.
       (5)(A) Section 5114 (relating to records) is moved to 
     subpart C of such part II and inserted after the table of 
     sections for such subpart.
       (B) Section 5114 is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

     ``SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.'',

     and
       (ii) by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Wholesale Dealers.--For purposes of this part--
       ``(1) Wholesale dealer in liquors.--The term `wholesale 
     dealer in liquors' means any dealer (other than a wholesale 
     dealer in beer) who sells, or offers for sale, distilled 
     spirits, wines, or beer, to another dealer.
       ``(2) Wholesale dealer in beer.--The term `wholesale dealer 
     in beer' means any dealer who sells, or offers for sale, 
     beer, but not distilled spirits or wines, to another dealer.
       ``(3) Dealer.--The term `dealer' means any person who 
     sells, or offers for sale, any distilled spirits, wines, or 
     beer.
       ``(4) Presumption in case of sale of 20 wine gallons or 
     more.--The sale, or offer for sale, of distilled spirits, 
     wines, or beer, in quantities of 20 wine gallons or more to 
     the same person at the same time, shall be presumptive 
     evidence that the person making such sale, or offer for sale, 
     is engaged in or carrying on the business of a wholesale 
     dealer in liquors or a wholesale dealer in beer, as the case 
     may be. Such presumption may be overcome by evidence 
     satisfactorily showing that such sale, or offer for sale, was 
     made to a person other than a dealer.''.
       (C) Paragraph (3) of section 5121(d), as so redesignated, 
     is amended by striking ``section 5146'' and inserting 
     ``section 5123''.
       (6)(A) Section 5124 (relating to records) is moved to 
     subpart C of part II of subchapter

[[Page S1051]]

     A of chapter 51 and inserted after section 5121.
       (B) Section 5124 is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

     ``SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.'',

       (ii) by striking ``section 5146'' in subsection (c) and 
     inserting ``section 5123'', and
       (iii) by redesignating subsection (c) as subsection (d) and 
     inserting after subsection (b) the following new subsection:
       ``(c) Retail Dealers.--For purposes of this section--
       ``(1) Retail dealer in liquors.--The term `retail dealer in 
     liquors' means any dealer (other than a retail dealer in beer 
     or a limited retail dealer) who sells, or offers for sale, 
     distilled spirits, wines, or beer, to any person other than a 
     dealer.
       ``(2) Retail dealer in beer.--The term `retail dealer in 
     beer' means any dealer (other than a limited retail dealer) 
     who sells, or offers for sale, beer, but not distilled 
     spirits or wines, to any person other than a dealer.
       ``(3) Limited retail dealer.--The term `limited retail 
     dealer' means any fraternal, civic, church, labor, 
     charitable, benevolent, or ex-servicemen's organization 
     making sales of distilled spirits, wine or beer on the 
     occasion of any kind of entertainment, dance, picnic, bazaar, 
     or festival held by it, or any person making sales of 
     distilled spirits, wine or beer to the members, guests, or 
     patrons of bona fide fairs, reunions, picnics, carnivals, or 
     other similar outings, if such organization or person is not 
     otherwise engaged in business as a dealer.
       ``(4) Dealer.--The term `dealer' has the meaning given such 
     term by section 5121(c)(3).''.
       (7) Section 5146 is moved to subpart C of part II of 
     subchapter A of chapter 51, inserted after section 5122, and 
     redesignated as section 5123.
       (8) Part II of subchapter A of chapter 51 is amended by 
     inserting after subpart C the following new subpart:

                     ``Subpart D--Other Provisions

``Sec. 5131. Packaging distilled spirits for industrial uses.
``Sec. 5132. Prohibited purchases by dealers.''.
       (9) Section 5116 is moved to subpart D of part II of 
     subchapter A of chapter 51, inserted after the table of 
     sections, redesignated as section 5131, and amended by 
     inserting ``(as defined in section 5121(c))'' after 
     ``dealer'' in subsection (a).
       (10) Subpart D of part II of subchapter A of chapter 51 is 
     amended by adding at the end thereof the following new 
     section:

     ``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.

       ``(a) In General.--Except as provided in regulations 
     prescribed by the Secretary, it shall be unlawful for a 
     dealer to purchase distilled spirits for resale from any 
     person other than a wholesale dealer in liquors who is 
     required to keep the records prescribed by section 5121.
       ``(b) Limited Retail Dealers.--A limited retail dealer may 
     lawfully purchase distilled spirits for resale from a retail 
     dealer in liquors.
       ``(c) Penalty and Forfeiture.--

  ``For penalty and forfeiture provisions applicable to violations of 
subsection (a), see sections 5687 and 7302.''.

       (11) Subsection (b) of section 5002 is amended--
       (A) by striking ``section 5112(a)'' and inserting ``section 
     5121(c)(3)'',
       (B) by striking ``section 5112'' and inserting ``section 
     5121(c)'',
       (C) by striking ``section 5122'' and inserting ``section 
     5122(c)''.
       (12) Subparagraph (A) of section 5010(c)(2) is amended by 
     striking ``section 5134'' and inserting ``section 5114''.
       (13) Subsection (d) of section 5052 is amended to read as 
     follows:
       ``(d) Brewer.--For purposes of this chapter, the term 
     `brewer' means any person who brews beer or produces beer for 
     sale. Such term shall not include any person who produces 
     only beer exempt from tax under section 5053(e).''.
       (14) The text of section 5182 is amended to read as 
     follows:
       ``For provisions requiring recordkeeping by wholesale 
     liquor dealers, see section 5121, and by retail liquor 
     dealers, see section 5122.''.
       (15) Subsection (b) of section 5402 is amended by striking 
     ``section 5092'' and inserting ``section 5052(d)''.
       (16) Section 5671 is amended by striking ``or 5091''.
       (17)(A) Part V of subchapter J of chapter 51 is hereby 
     repealed.
       (B) The table of parts for such subchapter J is amended by 
     striking the item relating to part V.
       (18)(A) Sections 5142, 5143, and 5145 are moved to 
     subchapter D of chapter 52, inserted after section 5731, 
     redesignated as sections 5732, 5733, and 5734, respectively, 
     and amended by striking ``this part'' each place it appears 
     and inserting ``this subchapter''.
       (B) Section 5732, as redesignated by subparagraph (A), is 
     amended by striking ``(except the tax imposed by section 
     5131)'' each place it appears.
       (C) Paragraph (2) of section 5733(c), as redesignated by 
     subparagraph (A), is amended by striking ``liquors'' both 
     places it appears and inserting ``tobacco products and 
     cigarette papers and tubes''.
       (D) The table of sections for subchapter D of chapter 52 is 
     amended by adding at the end thereof the following:

``Sec. 5732. Payment of tax.
``Sec. 5733. Provisions relating to liability for occupational taxes.
``Sec. 5734. Application of State laws.''.
       (E) Section 5731 is amended by striking subsection (c) and 
     by redesignating subsection (d) as subsection (c).
       (19) Subsection (c) of section 6071 is amended by striking 
     ``section 5142'' and inserting ``section 5732''.
       (20) Paragraph (1) of section 7652(g) is amended--
       (A) by striking ``subpart F'' and inserting ``subpart B'', 
     and
       (B) by striking ``section 5131(a)'' and inserting ``section 
     5111''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2004, but shall not apply to 
     taxes imposed for periods before such date.

     SEC. 5432. SUSPENSION OF LIMITATION ON RATE OF RUM EXCISE TAX 
                   COVER OVER TO PUERTO RICO AND VIRGIN ISLANDS.

       (a) In General.--Section 7652(f)(1) (relating to limitation 
     on cover over of tax on distilled spirits) is amended by 
     striking ``January 1, 2004'' and inserting ``October 1, 2004, 
     and $13.50 in the case of distilled spirits brought into the 
     United States after September 30, 2004, and before January 1, 
     2006''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to articles containing distilled spirits brought into 
     the United States after December 31, 2003.
       (2) Special rule.--
       (A) In general.--After September 30, 2004, the treasury of 
     Puerto Rico shall make a Conservation Trust Fund transfer 
     within 30 days from the date of each cover over payment to 
     such treasury under section 7652(e) of the Internal Revenue 
     Code of 1986.
       (B) Conservation trust fund transfer.--
       (i) In general.--For purposes of this paragraph, the term 
     ``Conservation Trust Fund transfer'' means a transfer to the 
     Puerto Rico Conservation Trust Fund of an amount equal to 50 
     cents per proof gallon of the taxes imposed under section 
     5001 or section 7652 of such Code on distilled spirits that 
     are covered over to the treasury of Puerto Rico under section 
     7652(e) of such Code.
       (ii) Treatment of transfer.--Each Conservation Trust Fund 
     transfer shall be treated as principal for an endowment, the 
     income from which to be available for use by the Puerto Rico 
     Conservation Trust Fund for the purposes for which the Trust 
     Fund was established.
       (iii) Result of nontransfer.--

       (I) In general.--Upon notification by the Secretary of the 
     Interior that a Conservation Trust Fund transfer has not been 
     made by the treasury of Puerto Rico, the Secretary of the 
     Treasury shall, except as provided in subclause (II), deduct 
     and withhold from the next cover over payment to be made to 
     the treasury of Puerto Rico under section 7652(e) of such 
     Code an amount equal to the appropriate Conservation Trust 
     Fund transfer and interest thereon at the underpayment rate 
     established under section 6621 of such Code as of the due 
     date of such transfer. The Secretary of the Treasury shall 
     transfer such amount deducted and withheld, and the interest 
     thereon, directly to the Puerto Rico Conservation Trust Fund.
       (II) Good cause exception.--If the Secretary of the 
     Interior finds, after consultation with the Governor of 
     Puerto Rico, that the failure by the treasury of Puerto Rico 
     to make a required transfer was for good cause, and notifies 
     the Secretary of the Treasury of the finding of such good 
     cause before the due date of the next cover over payment 
     following the notification of nontransfer, then the Secretary 
     of the Treasury shall not deduct the amount of such 
     nontransfer from any cover over payment.

       (C) Puerto rico conservation trust fund.--For purposes of 
     this paragraph, the term ``Puerto Rico Conservation Trust 
     Fund'' means the fund established pursuant to a Memorandum of 
     Understanding between the United States Department of the 
     Interior and the Commonwealth of Puerto Rico, dated December 
     24, 1968.

                       PART V--SPORT EXCISE TAXES

     SEC. 5441. CUSTOM GUNSMITHS.

       (a) Small Manufacturers Exempt From Firearms Excise Tax.--
     Section 4182 (relating to exemptions) is amended by 
     redesignating subsection (c) as subsection (d) and by 
     inserting after subsection (b) the following new subsection:
       ``(c) Small Manufacturers, Etc.--
       ``(1) In general.--The tax imposed by section 4181 shall 
     not apply to any article described in such section if 
     manufactured, produced, or imported by a person who 
     manufactures, produces, and imports less than 50 of such 
     articles during the calendar year.
       ``(2) Controlled groups.--All persons treated as a single 
     employer for purposes of subsection (a) or (b) of section 52 
     shall be treated as one person for purposes of paragraph 
     (1).''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to articles sold by the manufacturer, producer, or 
     importer on or after the date which is the first day of the 
     month beginning at least 2 weeks after the date of the 
     enactment of this Act.
       (2) No inference.--Nothing in the amendments made by this 
     section shall be construed to create any inference with 
     respect to the proper tax treatment of any sales before the 
     effective date of such amendments.

[[Page S1052]]

     SEC. 5442. MODIFIED TAXATION OF IMPORTED ARCHERY PRODUCTS.

       (a) Bows.--Paragraph (1) of section 4161(b) (relating to 
     bows) is amended to read as follows:
       ``(1) Bows.--
       ``(A) In general.--There is hereby imposed on the sale by 
     the manufacturer, producer, or importer of any bow which has 
     a peak draw weight of 30 pounds or more, a tax equal to 11 
     percent of the price for which so sold.
       ``(B) Archery equipment.--There is hereby imposed on the 
     sale by the manufacturer, producer, or importer--
       ``(i) of any part or accessory suitable for inclusion in or 
     attachment to a bow described in subparagraph (A), and
       ``(ii) of any quiver or broadhead suitable for use with an 
     arrow described in paragraph (2),
     a tax equal to 11 percent of the price for which so sold.''.
       (b) Arrows.--Subsection (b) of section 4161 (relating to 
     bows and arrows, etc.) is amended by redesignating paragraph 
     (3) as paragraph (4) and inserting after paragraph (2) the 
     following:
       ``(3) Arrows.--
       ``(A) In general.--There is hereby imposed on the sale by 
     the manufacturer, producer, or importer of any arrow, a tax 
     equal to 12 percent of the price for which so sold.
       ``(B) Exception.--In the case of any arrow of which the 
     shaft or any other component has been previously taxed under 
     paragraph (1) or (2)--
       ``(i) section 6416(b)(3) shall not apply, and
       ``(ii) the tax imposed by subparagraph (A) shall be an 
     amount equal to the excess (if any) of--

       ``(I) the amount of tax imposed by this paragraph 
     (determined without regard to this subparagraph), over
       ``(II) the amount of tax paid with respect to the tax 
     imposed under paragraph (1) or (2) on such shaft or 
     component.

       ``(C) Arrow.--For purposes of this paragraph, the term 
     `arrow' means any shaft described in paragraph (2) to which 
     additional components are attached.''.
       (c) Conforming Amendments.--Section 4161(b)(2) is amended--
       (1) by inserting ``(other than broadheads)'' after 
     ``point'', and
       (2) by striking ``Arrows.--'' in the heading and inserting 
     ``Arrow components.--''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after the date of the enactment of this Act.

     SEC. 5443. TREATMENT OF TRIBAL GOVERNMENTS FOR PURPOSES OF 
                   FEDERAL WAGERING EXCISE AND OCCUPATIONAL TAXES.

       (a) In General.--Subsection (a) of section 7871 (relating 
     to Indian tribal governments treated as States for certain 
     purposes) is amended by striking ``and'' at the end of 
     paragraph (6), by striking the period at the end of paragraph 
     (7) and inserting ``; and'', and by adding at the end the 
     following new paragraph:
       ``(8) for purposes of chapter 35 (relating to taxes on 
     wagering).''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2004, but shall not apply to 
     taxes imposed for periods before such date.

                       PART VI--OTHER PROVISIONS

     SEC. 5451. INCOME TAX CREDIT FOR DISTILLED SPIRITS 
                   WHOLESALERS AND FOR DISTILLED SPIRITS IN 
                   CONTROL STATE BAILMENT WAREHOUSES FOR COSTS OF 
                   CARRYING FEDERAL EXCISE TAXES ON BOTTLED 
                   DISTILLED SPIRITS.

       (a) In General.--Subpart A of part I of subchapter A of 
     chapter 51 (relating to gallonage and occupational taxes) is 
     amended by adding at the end the following new section:

     ``SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF CARRYING 
                   EXCISE TAX.

       ``(a) In General.--For purposes of section 38, the amount 
     of the distilled spirits credit for any taxable year is the 
     amount equal to the product of--
       ``(1) in the case of--
       ``(A) any eligible wholesaler--
       ``(i) the number of cases of bottled distilled spirits--

       ``(I) which were bottled in the United States, and
       ``(II) which are purchased by such wholesaler during the 
     taxable year directly from the bottler of such spirits, or

       ``(B) any person which is subject to section 5005 and which 
     is not an eligible wholesaler, the number of cases of bottled 
     distilled spirits which are stored in a warehouse operated 
     by, or on behalf of, a State, or agency or political 
     subdivision thereof, on which title has not passed on an 
     unconditional sale basis, and
       ``(2) the average tax-financing cost per case for the most 
     recent calendar year ending before the beginning of such 
     taxable year.
       ``(b) Eligible Wholesaler.--For purposes of this section, 
     the term `eligible wholesaler' means any person which holds a 
     permit under the Federal Alcohol Administration Act as a 
     wholesaler of distilled spirits which is not a State, or 
     agency or political subdivision thereof.
       ``(c) Average Tax-Financing Cost.--
       ``(1) In general.--For purposes of this section, the 
     average tax-financing cost per case for any calendar year is 
     the amount of interest which would accrue at the deemed 
     financing rate during a 60-day period on an amount equal to 
     the deemed Federal excise tax per case.
       ``(2) Deemed financing rate.--For purposes of paragraph 
     (1), the deemed financing rate for any calendar year is the 
     average of the corporate overpayment rates under paragraph 
     (1) of section 6621(a) (determined without regard to the last 
     sentence of such paragraph) for calendar quarters of such 
     year.
       ``(3) Deemed federal excise tax per case.--For purposes of 
     paragraph (1), the deemed Federal excise tax per case is 
     $25.68.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Case.--The term `case' means 12 80-proof 750 
     milliliter bottles.
       ``(2) Number of cases in lot.--The number of cases in any 
     lot of distilled spirits shall be determined by dividing the 
     number of liters in such lot by 9.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit), as 
     amended by section 5101 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (15), by striking the period 
     at the end of paragraph (16) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(17) the distilled spirits credit determined under 
     section 5011(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d), as amended by section 5101 of this Act, 
     is amended by adding at the end the following new paragraph:
       ``(12) No carryback of section 5011 credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 5011(a) may be carried back to a taxable year 
     beginning before the date of the enactment of section 
     5011.''.
       (2) The table of sections for subpart A of part I of 
     subchapter A of chapter 51 is amended by adding at the end 
     the following new item:

``Sec. 5011. Income tax credit for average cost of carrying excise 
              tax.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5452. CREDIT FOR TAXPAYERS OWNING COMMERCIAL POWER 
                   TAKEOFF VEHICLES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45G. COMMERCIAL POWER TAKEOFF VEHICLES CREDIT.

       ``(a) General Rule.--For purposes of section 38, the amount 
     of the commercial power takeoff vehicles credit determined 
     under this section for the taxable year is $250 for each 
     qualified commercial power takeoff vehicle owned by the 
     taxpayer as of the close of the calendar year in which or 
     with which the taxable year of the taxpayer ends.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified commercial power takeoff vehicle.--The term 
     `qualified commercial power takeoff vehicle' means any 
     highway vehicle described in paragraph (2) which is propelled 
     by any fuel subject to tax under section 4041 or 4081 if such 
     vehicle is used in a trade or business or for the production 
     of income (and is licensed and insured for such use).
       ``(2) Highway vehicle described.--A highway vehicle is 
     described in this paragraph if such vehicle is--
       ``(A) designed to engage in the daily collection of refuse 
     or recyclables from homes or businesses and is equipped with 
     a mechanism under which the vehicle's propulsion engine 
     provides the power to operate a load compactor, or
       ``(B) designed to deliver ready mixed concrete on a daily 
     basis and is equipped with a mechanism under which the 
     vehicle's propulsion engine provides the power to operate a 
     mixer drum to agitate and mix the product en route to the 
     delivery site.
       ``(c) Exception for Vehicles Used by Governments, Etc.--No 
     credit shall be allowed under this section for any vehicle 
     owned by any person at the close of a calendar year if such 
     vehicle is used at any time during such year by--
       ``(1) the United States or an agency or instrumentality 
     thereof, a State, a political subdivision of a State, or an 
     agency or instrumentality of one or more States or political 
     subdivisions, or
       ``(2) an organization exempt from tax under section 501(a).
       ``(d) Termination.--This section shall not apply with 
     respect to any calendar year after 2006.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit), as 
     amended by section 5451 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (16), by striking the period 
     at the end of paragraph (17) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(18) the commercial power takeoff vehicles credit under 
     section 45G(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d), as amended by section 5451 of this Act, 
     is amended by adding at the end the following new paragraph:

[[Page S1053]]

       ``(13) No carryback of section 45g credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 45G(a) may be carried back to a taxable year 
     beginning on or before the date of the enactment of section 
     45G.''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 45G. Commercial power takeoff vehicles credit.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5453. CREDIT FOR AUXILIARY POWER UNITS INSTALLED ON 
                   DIESEL-POWERED TRUCKS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits), as amended 
     by section 5452 of this Act, is amended by adding at the end 
     the following new section:

     ``SEC. 45H. AUXILIARY POWER UNIT CREDIT.

       ``(a) General Rule.--For purposes of section 38, the amount 
     of the auxiliary power unit credit determined under this 
     section for the taxable year is $250 for each qualified 
     auxiliary power unit--
       ``(1) purchased by the taxpayer, and
       ``(2) installed or caused to be installed by the taxpayer 
     on a qualified heavy-duty highway vehicle during such taxable 
     year.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified auxiliary power unit.--The term `qualified 
     auxiliary power unit' means any integrated system which--
       ``(A) provides heat, air conditioning, engine warming, and 
     electricity to the factory installed components on a 
     qualified heavy-duty highway vehicle as if the main drive 
     engine of such vehicle was in operation,
       ``(B) is employed to reduce long-term idling of the diesel 
     engine on such a vehicle, and
       ``(C) is certified by the Environmental Protection Agency 
     as meeting emission standards in regulations in effect on the 
     date of the enactment of this section.
       ``(2) Qualified heavy-duty highway vehicle.--The term 
     `qualified heavy-duty highway vehicle' means any highway 
     vehicle weighing more than 12,500 pounds and powered by a 
     diesel engine.
       ``(c) Termination.--This section shall not apply with 
     respect to any installation occurring after December 31, 
     2006.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit), as 
     amended by section 5452 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (17), by striking the period 
     at the end of paragraph (18) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(19) the auxiliary power unit credit under section 
     45H(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d), as amended by section 5452 of this Act, 
     is amended by adding at the end the following new paragraph:
       ``(14) No carryback of section 45h credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 45H(a) may be carried back to a taxable year 
     beginning on or before the date of the enactment of section 
     45H.''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by section 5452 of this 
     Act, is amended by adding at the end the following new item:

``Sec. 45H. Auxiliary power unit credit.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to auxiliary power units purchased and installed 
     for taxable years beginning after the date of the enactment 
     of this Act.

                  Subtitle F--Miscellaneous Provisions

     SEC. 5501. MOTOR FUEL TAX ENFORCEMENT ADVISORY COMMISSION.

       (a) Establishment.--There is established a Motor Fuel Tax 
     Enforcement Advisory Commission (in this section referred to 
     as the ``Commission'').
       (b) Function.--The Commission shall--
       (1) review motor fuel revenue collections, historical and 
     current;
       (2) review the progress of investigations;
       (3) develop and review legislative proposals with respect 
     to motor fuel taxes;
       (4) monitor the progress of administrative regulation 
     projects relating to motor fuel taxes;
       (5) review the results of Federal and State agency 
     cooperative efforts regarding motor fuel taxes;
       (6) review the results of Federal interagency cooperative 
     efforts regarding motor fuel taxes; and
       (7) evaluate and make recommendations regarding--
       (A) the effectiveness of existing Federal enforcement 
     programs regarding motor fuel taxes,
       (B) enforcement personnel allocation, and
       (C) proposals for regulatory projects, legislation, and 
     funding.
       (c) Membership.--
       (1) Appointment.--The Commission shall be composed of the 
     following representatives appointed by the Chairmen and the 
     Ranking Members of the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives:
       (A) At least 1 representative from each of the following 
     Federal entities: the Department of Homeland Security, the 
     Department of Transportation - Office of Inspector General, 
     the Federal Highway Administration, the Department of 
     Defense, and the Department of Justice.
       (B) At least 1 representative from the Federation of State 
     Tax Administrators.
       (C) At least 1 representative from any State department of 
     transportation.
       (D) 2 representatives from the highway construction 
     industry.
       (E) 5 representatives from industries relating to fuel 
     distribution -- refiners (2 representatives), distributors (1 
     representative), pipelines (1 representative), and terminal 
     operators (2 representatives).
       (F) 1 representative from the retail fuel industry.
       (G) 2 representatives from the staff of the Committee on 
     Finance of the Senate and 2 representatives from the staff of 
     the Committee on Ways and Means of the House of 
     Representatives.
       (2) Terms.--Members shall be appointed for the life of the 
     Commission.
       (3) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (4) Travel expenses.--Members shall serve without pay but 
     shall receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (5) Chairman.--The Chairman of the Commission shall be 
     elected by the members.
       (d) Funding.--Such sums as are necessary shall be available 
     from the Highway Trust fund for the expenses of the 
     Commission.
       (e) Consultation.--Upon request of the Commission, 
     representatives of the Department of the Treasury and the 
     Internal Revenue Service shall be available for consultation 
     to assist the Commission in carrying out its duties under 
     this section.
       (f) Obtaining Data.--The Commission may secure directly 
     from any department or agency of the United States, 
     information (other than information required by any law to be 
     kept confidential by such department or agency) necessary for 
     the Commission to carry out its duties under this section. 
     Upon request of the Commission, the head of that department 
     or agency shall furnish such nonconfidential information to 
     the Commission. The Commission shall also gather evidence 
     through such means as it may deem appropriate, including 
     through holding hearings and soliciting comments by means of 
     Federal Register notices.
       (g) Termination.--The Commission shall terminate after 
     September 30, 2009.

     SEC. 5502. NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE 
                   FINANCING COMMISSION.

       (a) Establishment.--There is established a National Surface 
     Transportation Infrastructure Financing Commission (in this 
     section referred to as the ``Commission''). The Commission 
     shall hold its first meeting within 90 days of the 
     appointment of the eighth individual to be named to the 
     Commission.
       (b) Function.--
       (1) In general.--The Commission shall--
       (A) make a thorough investigation and study of revenues 
     flowing into the Highway Trust Fund under current law, 
     including the individual components of the overall flow of 
     such revenues;
       (B) consider whether the amount of such revenues is likely 
     to increase, decline, or remain unchanged, absent changes in 
     the law, particularly by taking into account the impact of 
     possible changes in public vehicular choice, fuel use, or 
     travel alternatives that could be expected to reduce or 
     increase revenues into the Highway Trust Fund;
       (C) consider alternative approaches to generating revenues 
     for the Highway Trust Fund, and the level of revenues that 
     such alternatives would yield;
       (D) consider highway and transit needs and whether 
     additional revenues into the Highway Trust Fund, or other 
     Federal revenues dedicated to highway and transit 
     infrastructure, would be required in order to meet such 
     needs; and
       (E) study such other matters closely related to the 
     subjects described in the preceding subparagraphs as it may 
     deem appropriate.
       (2) Time frame of investigation and study.--The time frame 
     to be considered by the Commission shall extend through the 
     year 2015.
       (3) Preparation of report.--Based on such investigation and 
     study, the Commission shall develop a final report, with 
     recommendations and the bases for those recommendations, 
     indicating policies that should be adopted, or not adopted, 
     to achieve various levels of annual revenue for the Highway 
     Trust Fund and to enable the Highway Trust Fund to receive 
     revenues sufficient to meet highway and transit needs. Such 
     recommendations shall address, among other matters as the 
     Commission may deem appropriate--
       (A) what levels of revenue are required by the Federal 
     Highway Trust Fund in order for it to meet needs to--
       (i) maintain, and
       (ii) improve the condition and performance of the Nation's 
     highway and transit systems;
       (B) what levels of revenue are required by the Federal 
     Highway Trust Fund in order to ensure that Federal levels of 
     investment in highways and transit do not decline in real 
     terms; and
       (C) the extent, if any, to which the Highway Trust Fund 
     should be augmented by other mechanisms or funds as a Federal

[[Page S1054]]

     means of financing highway and transit infrastructure 
     investments.
       (c) Membership.--
       (1) Appointment.--The Commission shall be composed of 15 
     members, appointed as follows:
       (A) 7 members appointed by the Secretary of Transportation, 
     in consultation with the Secretary of the Treasury.
       (B) 2 members appointed by the Chairman of the Committee on 
     Ways and Means of the House of Representatives.
       (C) 2 members appointed by the Ranking Minority Member of 
     the Committee on Ways and Means of the House of 
     Representatives.
       (D) 2 members appointed by the Chairman of the Committee on 
     Finance of the Senate.
       (E) 2 members appointed by the Ranking Minority Member of 
     the Committee on Finance of the Senate.
       (2) Qualifications.--Members appointed pursuant to 
     paragraph (1) shall be appointed from among individuals 
     knowledgeable in the fields of public transportation finance 
     or highway and transit programs, policy, and needs, and may 
     include representatives of interested parties, such as State 
     and local governments or other public transportation 
     authorities or agencies, representatives of the 
     transportation construction industry (including suppliers of 
     technology, machinery and materials), transportation labor 
     (including construction and providers), transportation 
     providers, the financial community, and users of highway and 
     transit systems.
       (3) Terms.--Members shall be appointed for the life of the 
     Commission.
       (4) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (5) Travel expenses.--Members shall serve without pay but 
     shall receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (6) Chairman.--The Chairman of the Commission shall be 
     elected by the members.
       (d) Staff.--The Commission may appoint and fix the pay of 
     such personnel as it considers appropriate.
       (e) Funding.--Funding for the Commission shall be provided 
     by the Secretary of the Treasury and by the Secretary of 
     Transportation, out of funds available to those agencies for 
     administrative and policy functions.
       (f) Staff of Federal Agencies.--Upon request of the 
     Commission, the head of any department or agency of the 
     United States may detail any of the personnel of that 
     department or agency to the Commission to assist in carrying 
     out its duties under this section.
       (g) Obtaining Data.--The Commission may secure directly 
     from any department or agency of the United States, 
     information (other than information required by any law to be 
     kept confidential by such department or agency) necessary for 
     the Commission to carry out its duties under this section. 
     Upon request of the Commission, the head of that department 
     or agency shall furnish such nonconfidential information to 
     the Commission. The Commission shall also gather evidence 
     through such means as it may deem appropriate, including 
     through holding hearings and soliciting comments by means of 
     Federal Register notices.
       (h) Report.--Not later than 2 years after the date of its 
     first meeting, the Commission shall transmit its final 
     report, including recommendations, to the Secretary of 
     Transportation, the Secretary of the Treasury, and the 
     Committee on Ways and Means of the House of Representatives, 
     the Committee on Finance of the Senate, the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, the Committee on Environment and Public 
     Works of the Senate, and the Committee on Banking, Housing, 
     and Urban Affairs of the Senate.
       (i) Termination.--The Commission shall terminate on the 
     180th day following the date of transmittal of the report 
     under subsection (h). All records and papers of the 
     Commission shall thereupon be delivered to the Administrator 
     of General Services for deposit in the National Archives.

     SEC. 5503. TREASURY STUDY OF FUEL TAX COMPLIANCE AND 
                   INTERAGENCY COOPERATION.

       (a) In General.--Not later than January 31, 2006, the 
     Secretary of the Treasury shall submit to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives a report regarding fuel tax 
     enforcement which shall include the information and analysis 
     specified in subsections (b) and (c) and any other 
     information and recommendations the Secretary of the Treasury 
     may deem appropriate.
       (b) Audits.--With respect to audits conducted by the 
     Internal Revenue Service, the report required under 
     subsection (a) shall include--
       (1) the number and geographic distribution of audits 
     conducted annually, by fiscal year, between October 1, 2001, 
     and September 30, 2005;
       (2) the total volume involved for each of the taxable fuels 
     covered by such audits and a comparison to the annual 
     production of such fuels;
       (3) the staff hours and number of personnel devoted to the 
     audits per year; and
       (4) the results of such audits by year, including total tax 
     collected, total penalties collected, and number of referrals 
     for criminal prosecution.
       (c) Enforcement Activities.--With respect to enforcement 
     activities, the report required under subsection (a) shall 
     include--
       (1) the number and geographic distribution of criminal 
     investigations and prosecutions annually, by fiscal year, 
     between October 1, 2001, and September 30, 2005, and the 
     results of such investigations and prosecutions;
       (2) to the extent such investigations and prosecutions 
     involved other agencies, State or Federal, a breakdown by 
     agency of the number of joint investigations involved;
       (3) an assessment of the effectiveness of joint action and 
     cooperation between the Department of the Treasury and other 
     Federal and State agencies, including a discussion of the 
     ability and need to share information across agencies for 
     both civil and criminal Federal tax enforcement and 
     enforcement of State or Federal laws relating to fuels;
       (4) the staff hours and number of personnel devoted to 
     criminal investigations and prosecutions per year;
       (5) the staff hours and number of personnel devoted to 
     administrative collection of fuel taxes; and
       (6) the results of administrative collection efforts 
     annually, by fiscal year, between October 1, 2001, and 
     September 30, 2005.

     SEC. 5504. EXPANSION OF HIGHWAY TRUST FUND EXPENDITURE 
                   PURPOSES TO INCLUDE FUNDING FOR STUDIES OF 
                   SUPPLEMENTAL OR ALTERNATIVE FINANCING FOR THE 
                   HIGHWAY TRUST FUND.

       (a) In General.--From amounts available in the Highway 
     Trust Fund, there is authorized to be expended for 2 
     comprehensive studies of supplemental or alternative funding 
     sources for the Highway Trust Fund--
       (1) $1,000,000 to the Western Transportation Institute of 
     the College of Engineering at Montana State University for 
     the study and report described in subsection (b), and
       (2) $16,500,000 to the Public Policy Center of the 
     University of Iowa for the study and report described in 
     subsection (c).
       (b) Study of Funding Mechanisms.--Not later than December 
     31, 2006, the Western Transportation Institute of the College 
     of Engineering at Montana State University shall report to 
     the Secretary of the Treasury and the Secretary of 
     Transportation on a study of highway funding mechanisms of 
     other industrialized nations, an examination of the viability 
     of alternative funding proposals, including congestion 
     pricing, greater reliance on tolls, privatization of 
     facilities, and bonding for construction of added capacity, 
     and an examination of increasing the rates of motor fuels 
     taxes in effect on the date of the enactment of this Act, 
     including the indexation of such rates.
       (c) Study on Field Test of On-Board Computer Assessment of 
     Highway Use Taxes.--Not later than December 31, 2011, the 
     Public Policy Center of the University of Iowa shall direct, 
     analyze, and report to the Secretary of the Treasury and the 
     Secretary of Transportation on a long-term field test of an 
     approach to assessing highway use taxes based upon actual 
     mileage driven by a specific vehicle on specific types of 
     highways by use of an on-board computer--
       (1) which is linked to satellites to calculate highway 
     mileage traversed,
       (2) which computes the appropriate highway use tax for each 
     of the Federal, State, and local governments as the vehicle 
     makes use of the highways, and
       (3) the data from which is periodically downloaded by the 
     vehicle owner to a collection center for an assessment of 
     highway use taxes due in each jurisdiction traversed.The 
     components of the field test shall include 2 years for 
     preparation, including selection of vendors and test 
     participants, and 3-year testing period.

     SEC. 5505. TREASURY STUDY OF HIGHWAY FUELS USED BY TRUCKS FOR 
                   NON-TRANSPORTATION PURPOSES.

       (a) Study.--The Secretary of the Treasury shall conduct a 
     study regarding the use of highway motor fuel by trucks that 
     is not used for the propulsion of the vehicle. As part of 
     such study--
       (1) in the case of vehicles carrying equipment that is 
     unrelated to the transportation function of the vehicle--
       (A) the Secretary of the Treasury, in consultation with the 
     Secretary of Transportation, and with public notice and 
     comment, shall determine the average annual amount of tax 
     paid fuel consumed per vehicle, by type of vehicle, used by 
     the propulsion engine to provide the power to operate the 
     equipment attached to the highway vehicle, and
       (B) the Secretary of the Treasury shall review the 
     technical and administrative feasibility of exempting such 
     nonpropulsive use of highway fuels for the highway motor 
     fuels excise taxes,
       (2) in the case where non-transportation equipment is run 
     by a separate motor--
       (A) the Secretary of the Treasury shall determine the 
     annual average amount of fuel exempted from tax in the use of 
     such equipment by equipment type, and
       (B) the Secretary of the Treasury shall review issues of 
     administration and compliance related to the present-law 
     exemption provided for such fuel use, and
       (3) the Secretary of the Treasury shall--
       (A) estimate the amount of taxable fuel consumed by trucks 
     and the emissions of various pollutants due to the long-term 
     idling of diesel engines, and
       (B) determine the cost of reducing such long-term idling 
     through the use of plug-ins at truck stops, auxiliary power 
     units, or other technologies.
       (b) Report.--Not later than January 1, 2006, the Secretary 
     of the Treasury shall report the findings of the study 
     required under

[[Page S1055]]

     subsection (a) to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives.

     SEC. 5506. DELTA REGIONAL TRANSPORTATION PLAN.

       (a) Study.--The Delta Regional Authority shall conduct a 
     study of the transportation assets and needs in the States of 
     Alabama, Arkansas, Illinois, Kentucky, Louisiana, 
     Mississippi, Missouri, and Tennessee which comprise the Delta 
     region.
       (b) Regional Strategic Transportation Plan.--Upon 
     completion of the study required under subsection (a), the 
     Delta Regional Authority shall establish a regional strategic 
     transportation plan to achieve efficient transportation 
     systems in the Delta region. In developing the regional 
     strategic transportation plan, the Delta Regional Authority 
     shall consult with local planning and development districts, 
     local and regional governments, metropolitan planning 
     organizations, State transportation entities, and Federal 
     transportation agencies.
       (c) Elements of Study and Plan.--The study and plan under 
     this section shall include the following transportation modes 
     and systems: transit, rail, highway, interstate, bridges, 
     air, airports, waterways and ports.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Delta Regional Authority $1,000,000 
     to carry out the purposes of this section, to remain 
     available until expended.

     SEC. 5507. TREATMENT OF EMPLOYER-PROVIDED TRANSIT AND VAN 
                   POOLING BENEFITS.

       (a) In General.--Subparagraph (A) of section 132(f)(2) 
     (relating to limitation on exclusion) is amended by striking 
     ``$100'' and inserting ``$120''.
       (b) Inflation Adjustment Conforming Amendments.--The last 
     sentence of section 132(f)(6)(A) (relating to inflation 
     adjustment) is amended--
       (1) by striking ``2002'' and inserting ``2005'', and
       (2) by striking ``2001'' and inserting ``2004''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2004.

     SEC. 5508. STUDY OF INCENTIVES FOR PRODUCTION OF BIODIESEL.

       (a) Study.--The General Comptroller of the United States 
     shall conduct a study related to biodiesel fuels and the tax 
     credit for biodiesel fuels established under this Act. Such 
     study shall include--
       (1) an assessment on whether such credit provides 
     sufficient assistance to the producers of biodiesel fuel to 
     establish the fuel as a viable energy alternative in the 
     current market place,
       (2) an assessment on how long such credit or similar 
     subsidy would have to remain in effect before biodiesel fuel 
     can compete in the market place without such assistance,
       (3) a cost-benefit analysis of such credit, comparing the 
     cost of the credit in forgone revenue to the benefits of 
     lower fuel costs for consumers, increased profitability for 
     the biodiesel industry, increased farm income, reduced 
     program outlays from the Department of Agriculture, and the 
     improved environmental conditions through the use of 
     biodiesel fuel, and
       (4) an assessment on whether such credit results in any 
     unintended consequences for unrelated industries, including 
     the impact, if any, on the glycerin market.
       (b) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall report the findings of the study required under 
     subsection (a) to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives.

     SEC. 5509. REDUCTION OF EXPENDITURES FROM THE HIGHWAY TRUST 
                   FUND.

       The amount made available under titles I, II, III, and IV 
     of this Act shall be reduced on a pro rata basis, so that the 
     total of such reductions equals $214,000,000,000.

                      Subtitle G--Revenue Offsets

     PART I--LIMITATION ON EXPENSING CERTAIN PASSENGER AUTOMOBILES

     SEC. 5601. EXPANSION OF LIMITATION ON DEPRECIATION OF CERTAIN 
                   PASSENGER AUTOMOBILES.

       (a) In General.--Section 179(b) (relating to limitations) 
     is amended by adding at the end the following new paragraph:
       ``(6) Limitation on cost taken into account for certain 
     passenger vehicles.--
       ``(A) In general.--The cost of any sport utility vehicle 
     for any taxable year which may be taken into account under 
     this section shall not exceed $25,000.
       ``(B) Sport utility vehicle.--For purposes of subparagraph 
     (A)--
       ``(i) In general.--The term `sport utility vehicle' means 
     any 4-wheeled vehicle which--

       ``(I) is manufactured primarily for use on public streets, 
     roads, and highways,
       ``(II) is not subject to section 280F, and
       ``(III) is rated at not more than 14,000 pounds gross 
     vehicle weight.

       ``(ii) Certain vehicles excluded.--Such term does not 
     include any vehicle which--

       ``(I) does not have the primary load carrying device or 
     container attached,
       ``(II) has a seating capacity of more than 12 individuals,
       ``(III) is designed for more than 9 individuals in seating 
     rearward of the driver's seat,
       ``(IV) is equipped with an open cargo area, or a covered 
     box not readily accessible from the passenger compartment, of 
     at least 72.0 inches in interior length, or
       ``(V) has an integral enclosure, fully enclosing the driver 
     compartment and load carrying device, does not have seating 
     rearward of the driver's seat, and has no body section 
     protruding more than 30 inches ahead of the leading edge of 
     the windshield.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after February 2, 
     2004.

            PART II--PROVISION TO REPLENISH THE GENERAL FUND

     SEC. 5611. MODIFICATION TO CORPORATE ESTIMATED TAX 
                   REQUIREMENTS.

       The amount of any required installment of corporate 
     estimated income tax which is otherwise due under section 
     6655 of the Internal Revenue Code of 1986 after June 30, 
     2009, and before October 1, 2009, shall be 119 percent of 
     such amount.
                                 ______
                                 
  SA 2317. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1006, between lines 7 and 8, insert the following:

     SEC. 4603. SENSE OF THE SENATE

       It is the sense of the Senate that, notwithstanding 
     amendment to section 24104 of title 49, United States Code, 
     by section 4601, no amounts in excess of the amounts 
     appropriated for Amtrak for fiscal year 2004 should be 
     appropriated for any fiscal year before the enactment of a 
     law providing for comprehensive reform and restructuring of 
     Amtrak (as determined by the Secretary of Transportation).''.
                                 ______
                                 
  SA 2318. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1005, line 18, strike ``There'' and insert ``Upon 
     the enactment of a law providing for comprehensive reform and 
     restructuring of Amtrak (as determined by the Secretary of 
     Transportation), there''.
                                 ______
                                 
  SA 2319. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1005, line 21, after ``expenses.'' insert 
     ``Notwithstanding the preceding sentence, no amounts in 
     excess of the amounts appropriated for Amtrak for fiscal year 
     2004 are authorized to be appropriated for any fiscal year 
     until the enactment of a law providing for comprehensive 
     reform and restructuring of Amtrak (as determined by the 
     Secretary of Transportation),''.
                                 ______
                                 
  SA 2320. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       In section 105 of title 23, United States Code, as added by 
     section 1201 of the amendment, strike subsection (c).
                                 ______
                                 
  SA 2321. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       In section 105 of title 23, United States Code, as added by 
     section 1201 of the amendment, strike subsection (b)(1)(B).
                                 ______
                                 
  SA 2322. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       In section 105 of title 23, United States Code, as added by 
     section 1201 of the amendment, strike subsection (d).
                                 ______
                                 
  SA 2323. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize

[[Page S1056]]

funds for Federal-aid highways, highway safety programs, and transit 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       Redesignate subsection (g) of section 105 of title 23, 
     United States Code, as it would be amended by section 1104 of 
     the amendment, as subsection (h) and insert after subsection 
     (f) the following:
       ``(g) Further Adjustment.--The Secretary shall reduce any 
     funds apportioned to a State under this section by an amount 
     equal to any discretionary allocation directed in an annual 
     Appropriations Act, or its accompanying explanatory material, 
     made from a program funded from the Highway Trust Fund (other 
     than the mass transit account) or any other direct 
     appropriation from the Highway Trust Fund (other than the 
     mass transit account) received by such State, or any other 
     entity in such State, in the prior fiscal year.
                                 ______
                                 
  SA 2324. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1005, beginning with line 15, strike through line 7 
     on page 1006 and insert the following:

                     TITLE VI--RAIL TRANSPORTATION

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Rail Passenger Service 
     Restructuring, Reauthorization, and Development Act''.

     SEC. 602. TABLE OF CONTENTS; AMENDMENT OF TITLE 49, UNITED 
                   STATES CODE.

       (a) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 601. Short title.
Sec. 602. Table of contents; amendment of title 49, United States Code.

           Subtitle A--Network Restructuring and Cost-Sharing

                         Part 1--Restructuring

Sec. 611. Statement of purposes.
See. 612. Passenger rail service restructuring.
Sec. 613. Definitions.
Sec. 614. Operating grants for corridor routes.
Sec. 615. Operating grants for long distance routes
Sec. 616. Long distance route restructuring commission.
Sec. 617. Criteria for restructuring.
Sec. 618. Implementation of restructuring plan.

                       Part 2--Northeast Corridor

Sec. 621. Redemption of common stock.
Sec. 622. Retirement of preferred stock; transfer of assets.
See. 623. Real estate and asset sales; other.
See. 624. Interstate compact for the Northeast Corridor.
Sec. 625. Shut-down of commuter or freight operations.
Sec. 626. Capital grants for the Northeast Corridor.

                        Part 3--Related Matters

Sec. 631. Fair and open competition.
Sec. 632. Access to other railroads.
Sec. 633. Limitations on rail passenger transportation liability.
Sec. 634. Train operations insurance pool.
Sec. 635. Collective bargaining arrangements.

                      Subtitle B--Rail Development

See. 651. Capital assistance for intercity passenger rail service.
Sce. 652. Final regulations on applications by States for development 
              grants.
Sec. 653. Authority for interstate compacts for corridor development.

                          Subtitle C--Reforms

Sec. 671. Management of secured debt.
Sec. 672. Employee transition assistance.
Sec. 673. Termination of authority for GSA to provide services to 
              Amtrak.
Sec. 674. Amtrak reform board of directors.
See. 675. Limitations on availability of grants.
Sec. 676. Repeal of obsolete and executed provisions of law.
Sec. 677. Establishment of financial accounting system for the American 
              Passenger Railway Corporation by independent auditor.
See. 678. Restructuring of long-term debt and capital leases.
Sec. 679. Authorization of appropriations.
       (b) Amendment of Title 49.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or a repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of title 49, 
     United States Code.

           Subtitle A--Network Restructuring and Cost-Sharing

                         Part 1--Restructuring

     SEC. 611. STATEMENT OF PURPOSE OF CORPORATE RESTRUCTURING.

       Section 24101 is amended to read as follows:

     Sec. 24101. Findings, purpose, and goals

       ``(a) Findings.--
       ``(1) It is in the public interest of the United States to 
     encourage and promote the development of various modes of 
     transportation and transportation infrastructure to 
     efficiently maximize the mobility of passengers and goods.
       ``(2) Despite Federal subsidies of nearly $27 billion over 
     the past 34 years, intercity rail passenger service still 
     accounts for less than 1 percent of all intercity travel.
       ``(3) Intercity rail passenger service can be competitive 
     with other modes of transportation and achieve a significant 
     share of the travel market in short-distance corridors 
     connecting metropolitan areas.
       ``(4) Rail passenger transportation can help alleviate 
     overcrowding of airways and airports, and can provide needed 
     intermodal connections to airports, bus terminals, and mass 
     transit services.
       ``(5) Short-distance corridor trains account for 
     approximately 85 percent of Amtrak's ridership but only one-
     third of Amtrak's operating losses, excluding depreciation.
       ``(6) A number of Amtrak's long-distance routes may be more 
     efficiently operated and attract higher ridership as 
     connected corridors.
       ``(7) Service over long-distance routes that cannot be 
     restructured as connected corridors, do not receive State 
     financial support, or are not an essential link to the rest 
     of the intercity passenger rail network, should be 
     consolidated or discontinued.
       ``(8) Some States with short-distance corridor services 
     provide significant financial support for such services, 
     while other States with short-distance routes and all states 
     with long-distance routes contribute nothing for such 
     services. More equitable cost-sharing is needed to justify 
     Federal investment in intercity rail passenger service.
       ``(9) The need to invest taxpayer dollars in intercity rail 
     passenger service demands that fair and open competition be 
     permitted for the provision of such services to ensure that 
     service is provided in the most efficient manner, without 
     jeopardizing the safety of such operations.
       ``(10) A greater degree of cooperation is necessary among 
     intercity passenger service operators, freight railroads, 
     State, regional, and local governments, the private sector, 
     labor organizations, and suppliers of services and equipment 
     to achieve the performance sufficient to justify the 
     expenditure of additional public money on intercity rail 
     passenger service.
       ``(11) Transportation services provided by the private 
     freight railroads are vital to the economy and national 
     defense and should not be disadvantaged by the operation of 
     intercity passenger rail service over their rights-of-way.
       ``(12) The Northeast Corridor is a valuable resource of the 
     United States used by intercity and commuter rail passenger 
     transportation and freight transportation and should be 
     restored to a state of good repair.
       ``(b) Purpose.--The purpose of this chapter is to assist in 
     the preservation and development of conventional and high-
     speed intercity rail passenger services where such services 
     can play an important role in facilitating passenger mobility 
     in the United States.
       ``(e) Goals.--The goals of this chapter are--
       ``(1) to move toward a national network of interconnected 
     short-distance passenger rail corridor services,
       ``(2) to return the Northeast Corridor to a state of good 
     repair;
       ``(3) to establish a framework for the development of new 
     conventional and high-speed rail services;
       ``(4) to allow for train services to be operated under 
     contract to a State or group of States, with the operator of 
     the service selected by the State or group of States;
       ``(5) to establish equitable cost-sharing for capital 
     expenses and operating losses with the States; and
       ``(6) to encourage greater participation in the provision 
     of intercity rail passenger services by the private 
     sector.''.

     SEC. 612. PASSENGER RAIL SERVICE RESTRUCTURING.

       (a) In General.--Chapter 243 is amended by inserting before 
     section 24301 the following:

     ``Sec. 24300. Restructuring mandate

       ``(a) In General.--Within 6 months after the date of 
     enactment of the Rail Passenger Service Restructuring, 
     Reauthorization, and Development Act, the Amtrak Reform Board 
     shall restructure Amtrak as 2 independent entities, as 
     follows:
       ``(1) The national railroad passenger corporation.--One 
     entity shall be the National Railroad Passenger Corporation, 
     otherwise known as Amtrak, that shall provide overall 
     supervision of the restructuring of the intercity passenger 
     rail program.
       ``(2) The american passenger railway corporation.--The 
     other entity shall be a for profit corporation, to be known 
     as the American Passenger Railway Corporation, that shall be 
     responsible for conducting the passenger operations, 
     infrastructure maintenance, and related services, including 
     operation of reservation centers and ownership and management 
     of rolling stock, that were conducted by Amtrak before the 
     restructuring required by this subsection.
       ``(b) Articles of Incorporation and Other Documentation.--
     The Amtrak Reform Board shall--
       ``(1) file appropriate articles of incorporation under 
     State law for the American Passenger Railway Corporation; and

[[Page S1057]]

       ``(2) amend the articles of incorporation and bylaws of the 
     National Railroad Passenger Corporation to reflect its 
     changed functions and responsibilities.
       ``(c) Roles and responsibilities of the American Passenger 
     Railway Corporation.--
       ``(1) Railroad activities.--Consistent with the business 
     corporation law of the State of incorporation of the American 
     Passenger Railway Corporation, the Corporation shall be 
     qualified to undertake railroad activities of an operational 
     or infrastructure nature.
       ``(2) Rail operations and related functions.--The American 
     Passenger Railway Corporation--
       ``(A) shall have the exclusive right, until October 1, 
     2005, to continue to provide the intercity passenger service 
     provided by Amtrak on the date of enactment of the Rail 
     Passenger Service Restructuring, Reauthorization, and 
     Development Act;
       ``(B) shall, beginning October 1, 2005, operate intercity 
     passenger service only on a contractual basis under 
     negotiated terms an(1 conditions;
       ``(C) shall operate a national reservations system; and
       ``(D) subject to fulfillment of its contractual 
     obligations, shall have the exclusive right, until management 
     of the mainline of the Northeast Corridor between Boston, 
     Massachusetts, and Washington, District of Columbia, is 
     transferred to the interstate compact created under section 
     624 or to another entity, to continue to provide the train 
     operations, dispatching, maintenance, and infrastructure 
     services that are being provided by Amtrak on the date of 
     enactment of the Rail Passenger Service Restructuring, 
     Reauthorization, and Development Act, but may provide such 
     services beginning October 1, 2005, only on a contractual 
     basis with the National Railroad Passenger Corporation under 
     negotiated terms and conditions.
       ``(4) Status of corporation.--
       ``(A) The American Passenger Railway Corporation--
       ``(1) is a railroad carrier under section 20102(2) and 
     chapters 261 and 281 of this title;
       ``(ii) shall be operated and managed as a for-profit 
     corporation; and
       ``(iii) is not a department, agency, or instrumentality of 
     the United States Government nor a Government corporation (as 
     defined in section 103 of title 5).
       ``(B) Chapter 105 of this title does not apply to the 
     Corporation, except that laws and regulations governing 
     safety, employee representation for collective bargaining 
     purposes, the handling of disputes between carriers and 
     employees, employee retirement, annuity, and unemployment 
     systems, and other dealings with employees that apply to a 
     rail carrier providing transportation subject to chapter 105 
     apply to the Corporation.
       ``(C) Subsections (c) through (1) of section 24301 of this 
     title shall apply to the Corporation.
       ``(5) Chief executive officer.--Subject to further action 
     by the board of directors of the American Passenger Railway 
     Corporation, the president of Amtrak on the date of enactment 
     of the Rail Passenger Service Restructuring, Reauthorization, 
     and Development Act shall be offered the position of chief 
     executive officer of the American Passenger Railway 
     Corporation.''.

     Sec. 24300A. American Passenger Railway Corporation board of 
       directors

       `(a) In General.--
       ``(1) Membership.--The American Passenger Railway 
     Corporation shall be governed by a board of directors 
     consisting of 7 members appointed by the President, by and 
     with the advice and consent of the Senate. No individual who 
     is an officer or employee of the United States may serve as a 
     member of the board.
       ``(2) Term of office.--Each member shall serve for a term 
     of 5 years. An individual may not serve for more than 2 
     terms.
       ``(3) Quorum.--A majority of the board members who have 
     been lawfully appointed and qualified at any moment shall 
     constitute a quorum for the conduct of business.
       ``(b) Bylaws.--The board of directors shall adopt bylaws 
     governing the corporation consistent with the provisions of 
     this section arid its articles of incorporation, and may 
     amend, repeal, and otherwise modify the bylaws from time to 
     time as necessary or appropriate.
       ``(c) Transition Board Members.--Individuals who are 
     serving as members of the Amtrak Reform Board on the day 
     before the date on which the American Passenger Railway 
     Corporation is established, with the exception of the 
     Secretary of Transportation, shall serve as members of the 
     board of directors of the American Passenger Railway 
     Corporation until 4 members of that board have been appointed 
     and qualified.

     ``Sec. 24300B. National Railroad Passenger Corporation board 
       after restructuring

       ``(a) In General.--After the American Passenger Railway 
     Corporation is established, the Reform Board established 
     under section 24302(a) shall be dissolved, and Amtrak shall 
     be governed by a board of directors consisting of--
       ``(1) the Secretary of Transportation;
       ``(2) the Federal Railroad Administrator or another officer 
     of the United States within the Department of Transportation 
     compensated under the Executive Schedule under title 5, 
     United States Code, who is designated by the Secretary; and
       ``(3) the Federal Transit Administrator or another officer 
     of the United States within the Department of Transportation 
     compensated under the Executive Schedule under title 5, who 
     is designated by the Secretary.
       ``(b) Roles and Responsibilities.--
       ``(1) Supervision and management.--After the board of 
     directors described in subsection (a) takes office, the 
     National Railroad Passenger Corporation shall--
       ``(A) provide overall supervision of the restructuring of 
     the intercity passenger rail program;
       ``(B) provide management of residual responsibilities; and
       ``(C) retain and manage Amtrak's legal rights, including 
     it's legal right of access to other railroads, and ownership 
     of Amtrak's real property, until that property is transferred 
     to the Secretary of Transportation under section 622.
       ``(2) Contracts for service.--The National Railroad 
     Passenger Corporation shall, by contract, permit an operator 
     to provide intercity passenger rail service over routes 
     operated by Amtrak on the date prior to the date the 
     restructuring required by this Act becomes effective, at the 
     frequencies in effect on that date, on its behalf and to use 
     its right of access to any segment of rail line owned by 
     another rail carrier and needed for the operation of that 
     train. The operator may be the American Passenger Railway 
     Corporation or another operator designated by the Secretary, 
     but there shall be no more than 1 intercity passenger rail 
     operator at a time over any segment of rail line owned by 
     another rail carrier, except in terminal areas as determined 
     by the Secretary or as may otherwise be provided by agreement 
     among the National Railroad Passenger Corporation, the 
     operators, and the owner of the rail line.
       ``(3) Use of amtrak name.--
       ``(A) In general.--Amtrak shall retain all legal rights 
     pertaining to the name `Amtrak,' and may, at its option, 
     license or otherwise make the name `Amtrak' commercially 
     available in connection with intercity passenger rail and 
     related services.
       ``(B) Use by american passenger railway corporation.--
     Amtrak shall by contract, permit the American Passenger 
     Railway Corporation to market its services under the Amtrak 
     name.
       ``(4) Amtrak personnel.--All Amtrak employees shall become 
     American Passenger Railway Corporation employees unless 
     retained by the National Railroad Passenger Corporation. The 
     American Passenger Railway Corporation shall succeed to the 
     collective bargaining agreements in effect between Amtrak and 
     labor organizations that are in effect on the day before the 
     date on which that Corporation is established. An employee 
     who elects employment with National Railroad Passenger 
     Corporation shall become an employee of that Corporation, 
     with only such rights regarding pay and benefits as that 
     Corporation shall determine.
       ``(5) Freight and commuter operations.--The National 
     Railroad Passenger Corporation shall ensure that the 
     implementation of the restructuring required by section 24300 
     gives due consideration to the needs of freight and commuter 
     operations that, as of the date of enactment of the Rail 
     Passenger Service Restructuring, Reauthorization, and 
     Development Act, operate on the Northeast Corridor using 
     Amtrak rights-of-way.
       ``(6) Rolling stock.--The National Railroad Passenger 
     Corporation shall set the terms under which the American 
     Passenger Railway Corporation must make available to any 
     replacement operator the legacy equipment associated with any 
     intercity passenger rail service provided as of the date of 
     enactment of that Act.''.
       (b) Spinning-off of Reservations System.--Not later than 2 
     years after the date of enactment of the Rail Passenger 
     Service Restructuring, Reauthorization, and Development Act, 
     the American Passenger Railway Corporation shall provide to 
     the Secretary of Transportation, the Senate Committee on 
     Commerce, Science, and Transportation, and the House of 
     Representatives Committee on Transportation and 
     Infrastructure recommendations on the feasibility, 
     advantages, and disadvantages of spinning off the reservation 
     system as a private for-profit entity.
       (c) Conforming Amendment.--The chapter analysis for chapter 
     243 is amended by inserting the following after the item 
     relating to section 24309:

``24300. Restructuring mandate
``24300A. American Passenger Railway Corporation board of directors
``24300B. Amtrak board after restructuring''.

     SEC. 613. DEFINITIONS.

       Section 24102 is amended--
       (1) by striking paragraph (2) and redesignating paragraphs 
     (3) through (9) as paragraphs (2) through (8), respectively;
       (2) by redesignating paragraphs (3) through (8), as 
     redesignated, as paragraphs (4) through (9), respectively, 
     and inserting after paragraph (2) the following:
       ``(3) `corridor train' means--
       ``(A) a train route operated by Amtrak as of January 1, 
     2004, with a route length of 750 miles or less; or
       ``(B) a new conventional or high-speed route eligible for 
     funding under chapter 244 of this title.'';
       (3) by redesignating paragraphs (6) through (9), as 
     redesignated, as paragraphs (7) through (10), respectively, 
     and inserting after paragraph (5) the following:
       ``(6) `long distance train' means a train route operated by 
     Amtrak as of January 1, 2004, with a route length greater 
     than 750 miles.''.

[[Page S1058]]

     SEC. 614. OPERATING GRANTS FOR CORRIDOR ROUTES.

       (a) In General.--Chapter 243 is amended by adding at the 
     end the following:

     ``Sec. 24316. Operating grants for corridor routes

       ``(a) In General.--
       ``(1) Operating grant authority.--Beginning on October 1, 
     2005, the Secretary of Transportation may make grants to 
     States for operating assistance under the authority of this 
     section, and not under any other provision of law, to 
     reimburse operators of corridor routes over which intercity 
     passenger service was provided on the date of enactment of 
     the Rail Passenger Service Restructuring, Reauthorization, 
     and Development Act for the operating expenses incurred in 
     operating those routes or those frequencies to provide 
     intercity passenger rail transportation.
       ``(2) Conditions.--A grant under this section shall be 
     subject to the terms, conditions, requirements, and 
     provisions the Secretary decides are necessary or appropriate 
     for the purposes of this section, including limitations on 
     what operating expenses are eligible for reimbursement.
       ``(b) Federal Share of Operating Losses.--
       ``(1) Reimbursable amount.--A grant to a State under this 
     section for any fiscal year may not exceed an amount equal to 
     the lower of--
       ``(A) the applicable percentage of the Federal operating 
     subsidy for that fiscal year; or
       ``(B) the percentage of the operating subsidy for a route 
     not borne by a State during the last fiscal year ending 
     before the date of enactment of the Rail Passenger Service 
     Restructuring, Reauthorization, and Development Act.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage of the operating subsidy for a 
     fiscal year is--
       ``(A) 70 percent for fiscal year 2006;
       ``(B) 60 percent for fiscal year 2007;
       ``(C) 50 percent for fiscal year 2008;
       ``(D) 40 percent for fiscal year 2009; and
       ``(E) 30 percent for fiscal year 2010.
       ``(c) Determination of Expenses Eligible for 
     Reimbursement.--
       ``(1) Annual determination of subsidy.--On an annual basis, 
     the Inspector General for the Department of Transportation 
     shall analyze and advise the Secretary of Transportation as 
     to the operating subsidy required on corridor routes operated 
     by the American Passenger Railway Corporation under contract 
     with a State without competitive bid. The operating loss on 
     such routes shall--
       ``(A) reflect the fully allocated costs of operating the 
     route, including an appropriate share of overhead expenses, 
     including general and administrative expenses; and
       ``(B) exclude depreciation and interest expense on long-
     term debt.
       ``(2) Aggregation of northeast corridor losses.--Operating 
     losses on corridor trains operated exclusively on the 
     mainline of the Northeast Corridor extending from Washington, 
     D.C. to Boston, MA may be aggregated for purposes of 
     determining the operating subsidy required on the routes.
       ``(3) Determination with competitive bidding.--Expenses 
     eligible for Federal support pursuant to paragraph (b)(2) for 
     reimbursement for a corridor route that has been 
     competitively bid shall consist of the operating subsidy 
     agreed upon by the State, group of States, or other entity 
     and the operator.
       ``(d) Exception to Date Cost-Sharing Required.--For any 
     State whose legislature has not convened in regular session 
     after the date of enactment of the Rail Passenger Service 
     Restructuring, Reauthorization, and Development Act and 
     before October 1, 2005, the additional cost-sharing 
     requirements of this section shall become effective on 
     October 1, 2006.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section--
       ``(1) $125,000,000 for fiscal year 2006;
       ``(2) $100,000,000 for fiscal year 2007;
       ``(3) $90,000,000 for fiscal year 2008;
       ``(4) $75,000,000 for fiscal year 2009; and
       ``(5) $50,000,000 for fiscal year 2010.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     243 is amended by adding at the end the following:

``24316. Operating grants for corridor routes''.

     SEC. 615. OPERATING GRANTS FOR LONG DISTANCE ROUTES.

       (a) In General.--Chapter 243, as amended by section 614, is 
     amended by adding at the end the following:

     ``Sec. 24317. Operating grants for long distance routes

       ``(a) In General.--
       ``(1) Operating grant authority.--Beginning on October 1, 
     2005, the Secretary of Transportation may make grants to the 
     American Passenger Railway Corporation or to a State for 
     operating assistance under the authority of this section, and 
     not under any other provision of law, to reimburse operators 
     of long distance routes over which intercity passenger 
     service was provided on the date of enactment of the Rail 
     Passenger Service Restructuring, Reauthorization, and 
     Development Act, for operating subsidies required in 
     operating those routes or those frequencies to provide 
     intercity passenger rail transportation.
       ``(2) Conditions.--
       ``(A) A grant under this section shall be subject to the 
     terms, conditions, requirements, and provisions the Secretary 
     decides are necessary or appropriate for the purposes of this 
     section, including limitations on what operating expenses are 
     eligible for reimbursement.
       ``(B) The Secretary shall require the American Passenger 
     Railway Corporation, as a condition of a grant under this 
     section, to systematically reduce its fiscal year 2003 route 
     and system-wide overhead expenses by a minimum of 5 percent 
     annually through fiscal year 2010. A contract between the 
     National Railroad Passenger Corporation and the American 
     Passenger Railway Corporation for the operation of a long 
     distance route or routes must provide for reimbursement of 
     operating losses to be reduced to reflect such cost 
     reductions and productivity enhancements.
       ``(3) Annual determination of subsidy.--On an annual basis, 
     the Inspector General for the Department of Transportation 
     shall analyze and advise the Secretary of Transportation as 
     to the operating subsidy required on long distance routes 
     operated by the American Passenger Railway Corporation.
       ``(b) Federal Share of Operating Losses.--Pending 
     completion of the restructuring of long distance intercity 
     passenger rail routes required by sections 615 through 617 of 
     the Rail Passenger Service Restructuring, Reauthorization, 
     and Development Act, the Federal share for an operating grant 
     may be 100 percent of the qualifying operating subsidy for 
     the route.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of 
     Transportation to carry out this section--
       ``(1) $550,000,000 for fiscal year 2006;
       ``(2) $400,000,000 for fiscal year 2007;
       ``(3) $350,000,000 for fiscal year 2008;
       ``(4) $325,000,000 for fiscal year 2009; and
       ``(5) $300,000,000 for fiscal year 2010.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     243, as amended by section 614 of this Act, is amended by 
     adding at the end the following:

``24317. Operating grants for long distance routes

     SEC. 616. LONG DISTANCE ROUTE RESTRUCTURING COMMISSION.

       (a) Establishment.--There is established an independent 
     commission to be known as the Long Distance Route 
     Restructuring Commission.
       (b) Duty.--
       (1) In general.--The Commission shall submit a plan to 
     Congress for restructuring long distance intercity passenger 
     rail routes on a timely basis by--
       (A) retaining routes that provide a unique service that can 
     be contracted out by the National Railroad Passenger 
     Corporation on a for-profit basis;
       (B) restructuring other routes as linked corridor routes 
     between major metropolitan areas; and
       (C) consolidating or discontinuing service over remaining 
     routes.
       (2) Preservation of national network.--The restructuring 
     plan submitted by the Commission shall ensure that no 
     corridor train is completely isolated from the rest of the 
     intercity passenger rail network.
       (3) Exceptions.--
       (A) In general.--A route will be excluded from 
     consideration for restructuring, consolidation, or closure if 
     a State or group of States commits, by contractual 
     arrangement with the American Passenger Railway Corporation 
     or another operator selected through a competitive process, 
     to provide financial operating support at a level sufficient 
     to offset at least
       (i) 30 percent of the operating subsidy for fiscal year 
     2007;
       (ii) 40 percent of the operating subsidy for fiscal year 
     2008; and
       (iii) 50 percent of the operating subsidy thereafter.
       (B) Failure of support.--If a State or group of States 
     fails to provide the support to which it committed under this 
     paragraph, then service over the route shall be discontinued.
       (4) Consultation required.--In carrying out its duties, the 
     Commission shall consult with the American Passenger Railway 
     Corporation, State and local officials, freight railroads, 
     companies with expertise in intercity passenger 
     transportation, and other persons with an interest in the 
     restructuring of the long distance train routes.
       (c) Appointment.--
       (1) The Commission shall be composed of 7 members appointed 
     by the President within 6 months after the date of enactment 
     of this Act.
       (2) The Commission members shall elect 1 member to serve as 
     Chairman.
       (d) Termination.--The Commission shall terminate 90 days 
     after the Commission's recommendations for consolidation and 
     closure are submitted to Congress.
       (e) Vacancies.--A vacancy on the Commission shall be filled 
     in the same manner as the original appointment.
       (f) Detailees.--Upon the request of the Chairman of the 
     Commission, the head of any Federal department or agency may 
     detail personnel of that department or agency to the 
     Commission to assist the Commission in carrying out its 
     duties.
       (g) Compensation; Reimbursement.--Members of the Commission 
     shall serve without pay, but shall receive travel expenses, 
     including per diem in lieu of subsistence, in accordance with 
     section 5702 and 5703 of title 5, United States Code.
       (h) Other Authority.--
       (1) The Commission may procure by contract, to the extent 
     funds are available, the

[[Page S1059]]

     temporary or intermittent services of experts or consultants 
     pursuant to section 3109 of title 5, United States Code.
       (2) The Commission may lease space and acquire personal 
     property to the extent funds are available.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated for the use of the Commission in carrying 
     out its responsibilities under this section for each of 
     fiscal years 2005 and 2006, $4,000,000, such sums to remain 
     available until expended.

     SEC. 617. CRITERIA FOR RESTRUCTURING.

       (a) Restructuring as Linked Corridors.--
       (1) Prerequisite for restructuring.--A long distance route 
     or portion thereof may be recommended for restructuring as a 
     linked corridor if--
       (A) the origin-to-destination travel time of each corridor 
     link in the new route, at conventional train speeds, 
     including all station stops, will be competitive with other 
     modes of transportation;
       (B) each corridor link in the new route connects at least 2 
     major metropolitan areas or provides a link between 2 or more 
     existing corridor trains;
       (C) the restructured train can be reasonably expected to 
     attract at least 10 percent of the combined common carrier 
     market in the markets served;
       (D) the projected cash operating loss of each of the 
     restructured links does not exceed 11 cents per passenger-
     mile on a fully allocated cost basis; and
       (E) the Federal operating subsidy will not be more than 50 
     percent of the operating subsidy for the route for fiscal 
     year 2003.
       (2) Hours of operation.--In addition to the eligibility 
     criteria in paragraph (1), any long distance routes 
     recommended for restructuring as linked corridors shall be 
     designed to operate between the hours of 6:00 a.m. and 11:00 
     p.m.
       (3) Modification of routes.--With the concurrence of the 
     affected States, existing routes may be modified to improve 
     ridership and financial performance.
       (4) New capital plans.--As part of the restructuring plan 
     for reconfigured routes, the Commission shall develop a 
     capital plan, if additional capital is needed to reconfigure 
     the route as linked corridors.
       (b) Contracting-Out of Profitable Long Distance Routes and 
     Services.--The Commission shall determine which long distance 
     routes or services on such routes, including auto-ferry 
     transportation, food service, and sleeping accommodations, 
     could be contracted to a private operator on a for-profit 
     basis. In making these determinations, the Commission shall 
     solicit expressions of interest from the private sector in 
     operating long distance routes or services, including the 
     conditions under which private companies may be interested in 
     operating such services.
       (e) Consolidation and Closure.--The Commission shall make 
     recommendations to Congress for consolidating and closing 
     long distance train routes or portions of routes that cannot 
     be restructured under subsection (a) or contracted out under 
     subsection (b), to reduce the Federal operating subsidy 
     required by at least 50 percent compared to the operating 
     subsidy required in fiscal year 2003, taking into 
     consideration--
       (1) the operating loss on a fully allocated cost basis, 
     including capital costs, of the route or portion thereof;
       (2) the extent to which train service is the only available 
     public transportation to the cities and towns along the route 
     or portion;
       (3) whether an alternate route could significantly reduce 
     operating losses or increase ridership;
       (4) available capacity on the rights-of-way of the host 
     railroad or railroads; and
       (5) interest from the private sector in operating the route 
     or portion thereof on a subsidized basis.
       (d) Cooperation of American Passenger Railway 
     Corporation.--
       (1) The American Passenger Railway Corporation shall 
     cooperate and comply, subject to the agreement of the 
     Commission to protect the confidentiality of proprietary 
     information, with all requests for financial, marketing, and 
     other information affecting the routes under consideration by 
     the Commission.
       (2) The Secretary of Transportation may withhold all or 
     part of an operating or capital grant to the Corporation if 
     the Secretary determines the American Passenger Railway 
     Corporation is not cooperating with the Commission as 
     required by this Act.
       (e) Report.--The Commission shall submit its 
     recommendations for consolidation and closure to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure within 18 months after the date of enactment 
     of this Act. The report shall include a description of--
       (1) the analysis performed by the Commission to reach its 
     conclusions;
       (2) options considered in the development of a 
     restructuring plan;
       (3) the impact of the restructuring on employees of the 
     American Passenger Railway Corporation for any long distance 
     route restructured under this section; and
       (4) the costs and benefits of implementing the plan.

     SEC. 618. IMPLEMENTATION OF RESTRUCTURING PLAN.

       (a) In General.--Subject to subsection (b), the Secretary 
     of Transportation shall implement the restructuring plan 
     submitted by the Long Distance Route Restructuring Commission 
     in its report to Congress pursuant to section 617 unless a 
     joint resolution is enacted by the Congress disapproving such 
     recommendations of the Commission before the earlier of--
       (A) the end of the 45-day period beginning on the date the 
     Commission submits its report to Congress; or
       (B) the adjournment of Congress sine die for the session 
     during which such report is submitted.
       (2) For purposes of paragraph (1) of this subsection, the 
     days on which either House of Congress is not in session 
     because of an adjournment of more than 3 days to a day 
     certain shall be excluded in the computation of a period.

                       Part 2--Northeast Corridor

     SEC. 621. REDEMPTION OF COMMON STOCK.

       (a) Valuation.--The Secretary of Transportation shall 
     arrange, at the National Railroad Passenger Corporation's 
     expense, for a valuation of all Amtrak assets and liabilities 
     with an estimated value in excess of $1,000,000 as of the 
     date of enactment of this Act by the Secretary of the 
     Treasury, or by a contractor selected by the Secretary of the 
     Treasury. The valuation shall be conducted in accordance with 
     the Uniform Standards of Professional Appraisal Practice of 
     the Appraisal Foundation's Appraisal Standards Board and 
     shall be completed within 1 year after the date of enactment 
     of this Act.
       (b) Redemption.--
       (1) Prior to the transfer of assets to the Secretary 
     directed by section 622 of this Act, and within 3 months 
     after the completion of the valuation under subsection (a), 
     the National Railroad Passenger Corporation shall redeem all 
     common stock in Amtrak issued prior to the date of enactment 
     of this Act at the fair market value of such stock, based on 
     the valuation performed under subsection (a).
       (2) No provision of this Act, or amendments made by this 
     Act, provide to the owners of the common stock a priority 
     over holders of indebtedness or other stock of Amtrak.
       (c) Acquisition Through Eminent Domain.--In the event that 
     the National Railroad Passenger Corporation and the owners of 
     the Amtrak common stock have not completed the redemption of 
     such stock within 3 months after the completion of the 
     valuation under subsection (a), the National Railroad 
     Passenger Corporation shall exercise its right of eminent 
     domain under section 24311 of title 49, United States Code, 
     to acquire that stock. The value assigned to the common stock 
     under subsection (a) shall be deemed to constitute just 
     compensation except to the extent that the owners of the 
     common stock demonstrate that the valuation is less than the 
     constitutional minimum value of the stock.
       (d) Amendment of Section 24311.--Section 24311 (a) (1) is 
     amended--
       (1) by striking ``or'' at the end of subparagraph (A);
       (2) by striking ``Amtrak.'' in subparagraph (B) and 
     inserting ``Amtrak; or''; and
       (3) by adding at the end the following:
       ``(C) necessary to redeem Amtrak's common stock from any, 
     holder thereof, including a rail carrier.''.
       (e) Conversion of Preferred Stock to Common.--
       (1) Subsequent to the redemption of the common stock in the 
     corporation issued prior to the date of enactment of this 
     Act, the Secretary of Transportation shall convert the one 
     share of the preferred stock of Amtrak retained under section 
     622 of this Act for 10 shares of common stock in the National 
     Railroad Passenger Corporation.
       (2) The National Railroad Passenger Corporation may not 
     issue any other common stock, and may not issue preferred 
     stock, without the express written consent of the Secretary.
       (f) Termination of Section 24907 Note and Mortgage 
     Authority.--Section 24907 is amended by adding at the end the 
     following:
       ``(d) Termination of Authority.--The authority of the 
     Secretary to obtain a note of indebtedness from, and make a 
     mortgage agreement with, the American Passenger Railway 
     Corporation under subsection (a) is terminated as of the date 
     of the transfer of assets under section 622 of the Rail 
     Passenger Service Restructuring, Reauthorization, and 
     Development Act.''.

     SEC. 622. RETIREMENT OF PREFERRED STOCK; TRANSFER OF ASSETS.

       (a) Transfer.--Not later than 30 days after the redemption 
     or acquisition of stock under section 621 of this Act, the 
     National Railroad Passenger Corporation shall, in return for 
     the consideration specified in subsection (c), transfer to 
     the Secretary of Transportation title to--
       (1) the portions of the Northeast Corridor currently owned 
     or leased by the Corporation as well as any improvements made 
     to these assets, including the rail right-of-way, stations, 
     track, signal equipment, electric traction facilities, 
     bridges, tunnels, repair facilities, and all other 
     improvements owned by the Corporation between Boston, 
     Massachusetts, and Washington, District of Columbia 
     (including the route through Springfield, Massachusetts, and 
     the routes to Harrisburg, Pennsylvania, and Albany, New York, 
     from the Northeast Corridor mainline);
       (2) Chicago Union Station and rail-related assets in the 
     Chicago Metropolitan area; and
       (3) all other track and right-of-way, stations, repair 
     facilities, and other real property owned or leased by the 
     Corporation.

[[Page S1060]]

       (b) Existing Encumbrances.--
       (1) Assumption by federal government.--Any outstanding debt 
     on the mainline of the Northeast Corridor (other than debt 
     associated with rolling stock) shall become a debt obligation 
     of the United States as of the date of transfer of title 
     under subsection (a)(1).
       (2) Restructuring.--Except as provided in paragraph (1), 
     the obligation of the American Passenger Railway Corporation 
     or its successors or assigns to repay in full any 
     indebtedness to the United States incurred since January, 
     1990, is not affected by this Act or an amendment made by 
     this Act.
       (c) Consideration.--In consideration for the assets 
     transferred to the United States under subsection (a), the 
     Secretary shall--
       (1) deliver to the National Passenger Railroad Corporation 
     all but one share of the preferred stock of Amtrak field by 
     the Secretary and forgive Amtrak's legal obligation to pay 
     any dividends, including accrued but unpaid dividends as of 
     the date of transfer, evidenced by the preferred stock 
     certificates; and
       (2) release Amtrak from all mortgages and liens held by the 
     Secretary that were in existence on January 1, 1990.
       (d) Agreement.--Prior to accepting title to the assets 
     transferred under this section, the Secretary shall enter 
     into a contract with American Passenger Railway Corporation 
     under which American Passenger Railway Corporation w111 
     exercise care, custody, maintenance, and operational control 
     of the assets to be transferred. The term of the contract 
     shall be for 1 year, which shall be renewed annually without 
     action on the part of either party unless canceled by either 
     party with 90 days notice.
       (e) Further Transfers.--
       (1) The Secretary may, for appropriate consideration, 
     transfer title to all or part of Chicago Union Station and 
     rail-related assets in the Chicago metropolitan area acquired 
     under this section to a regional public transportation agency 
     that has significant operations in Chicago Union Station on 
     the date of enactment of this Act.
       (2) The Secretary may, for appropriate consideration, 
     transfer to the underlying States title to real estate 
     properties owned by the Corporation between Boston, 
     Massachusetts, and Washington, District of Columbia, that 
     constitute the route through Springfield, Massachusetts, and 
     the routes to Harrisburg, Pennsylvania, and Albany, New York, 
     from the Northeast Corridor mainline.
       (3) The Secretary may, for appropriate consideration, 
     transfer title to all or part of the assets acquired under 
     subsection (a)(3) to a State, a public agency, a railroad, or 
     other entity deemed appropriate by the Secretary.
       (f) Use of Proceeds.--Notwithstanding section 3302 of title 
     31, United States Code, any proceeds from the transfer of the 
     assets described in subsection (e) shall be credited as off-
     setting collection to the account that finances debt and 
     interest payments to the American Passenger Railway 
     Corporation. Funds available for corridor development under 
     chapter 244 of title 49, United States Code, shall be 
     increased by an amount equal to the amounts credited under 
     the preceding sentence.

     SEC. 623. REAL ESTATE AND ASSET SALES; OTHER.

       (a) In General.--Within 3 years after the date of enactment 
     of this Act, the Secretary of Transportation shall transfer 
     all stations, track, and other fixed facilities outside the 
     Northeast Corridor mainline to which the Secretary has 
     assumed title under section 622 of this title, other than 
     equipment repair facilities, to States, municipalities, 
     railroads, or other entities for maximum consideration.
       (b) Use of Proceeds.--Notwithstanding section 3302 of title 
     31, United States Code, any proceeds from the transfer of 
     assets under this section shall be credited as off-setting 
     collections to the account that finances debt and interest 
     payments to the American Passenger Railway Corporation. Funds 
     available for corridor development under chapter 244 of title 
     49, United States Code, shall be increased by an amount equal 
     to the amounts credited under the preceding sentence.

     SEC. 624. INTERSTATE COMPACT FOR THE NORTHEAST CORRIDOR.

       (a) Consent to Compact.--
       (1) In general.--The States and the District of Columbia 
     that constitute the Northeast Corridor, as defined in section 
     24102 of title 49, United States Code, may enter into a 
     multistate compact, not in conflict with any other law of the 
     United States, to be known as the Northeast Corridor Compact, 
     to manage railroad operations and rail service and conduct 
     related activities on the Northeast Corridor mainline between 
     Boston, Massachusetts, and Washington, District of Columbia.
       (2) Congressional approval required.--The Northeast 
     Corridor Compact shall be submitted to Congress for its 
     consent. It is the sense of the Congress that rapid consent 
     to the Compact is a priority matter for the Congress.
       (b) Compact Commission.--
       (1) In general.--There is hereby established a commission 
     to be known as the Northeast Corridor Compact Commission. The 
     Commission shall be composed of--
       (A) 2 members (or their designees), to be selected by the 
     Secretary of Transportation;
       (B) 2 members (or their designees), to be selected by 
     agreement of--
       (i) the governors of Maryland, Delaware, Pennsylvania, New 
     Jersey, New York, Connecticut, Rhode Island, and 
     Massachusetts (hereinafter referred to as the ``participating 
     States''); and
       (ii) the mayor of the District of Colombia; and
       (C) 1 member to be selected by the 4 members selected under 
     subparagraphs (A) and (B).
       (2) Administrative provisions.--
       (A) Members of the Commission shall be appointed for the 
     life of the Commission.
       (B) A vacancy in the Commission shall be filled in the 
     manner in which the original appointment was made.
       (C) Members shall serve without pay but shall receive 
     travel expenses, including per diem in lieu of subsistence, 
     in accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       (D) The Chairman of the Commission shall be elected by the 
     members.
       (E) The Commission may appoint and fix the pay of such 
     personnel as it considers appropriate.
       (F) Upon the request of the Commission, the head of any 
     department or agency of the United States may detail, on a 
     reimbursable basis, any of the personnel of that department 
     or agency to the Commission to assist it in carrying out its 
     duties under this section.
       (G) Upon the request of the Commission, the Administrator 
     of General Services shall provide to the Commission, on a 
     reimbursable basis, the administrative support services 
     necessary for the Commission to carry out its 
     responsibilities under this section.
       (c) Functions.--
       (1) The Commission shall prepare for the consideration of 
     and adoption by participating States, the District of 
     Columbia, and the Secretary of Transportation an interstate 
     compact that provides for--
       (A) full authority for 99 years to succeed to the 
     responsibilities of the American Passenger Railway 
     Corporation as operator of the Northeast Corridor, subject to 
     the provisions of a lease from the Department of 
     Transportation, including--
       (i) responsibility for Corridor maintenance and 
     improvement;
       (ii) operation of intercity passenger rail service;
       (iii) arrangements for operation of freight railroad 
     operations and commuter operations;
       (iv) authority to make use of the Corridor for non-rail 
     purposes; and
       (v) assumption of financial responsibility for Northeast 
     Corridor functions;
       (B) execution of a lease of the Northeast Corridor from the 
     Department of Transportation, for a period of 99 years, 
     subject to appropriate provisions protecting the lessor's 
     interests, including reversion of all lease interests to the 
     lessor in the event the lessee fails to meet its financial 
     obligations or otherwise assume financial responsibility for 
     Northeast Corridor functions; and
       (C) participation by the Department of Transportation, as 
     the non-voting representative of the United States.
       (2) The compact terms shall, at a minimum, conform to the 
     requirements of subsections (e) through (i) of this section.
       (d) Final Compact Proposal.--
       (1) The Commission shall submit a final compact proposal to 
     participating States, the District of Columbia, and the 
     Federal Government not later than 18 months after the date of 
     enactment of this Act.
       (2) The Commission shall terminate on the 180th day 
     following the date of transmittal of the final compact 
     proposal under this subsection.
       (e) Governance and Funding Requirements for Compact.--
       (1) The governance provisions of the compact shall provide 
     a mechanism to ensure voting representation for the 
     participating States and the District of Columbia and for 
     non-voting representation for the Secretary of Transportation 
     and a freight railroad that conducts operations on the 
     Northeast Corridor as ex officio members participating in all 
     Compact affairs.
       (2) The provisions of the compact shall establish the 
     financial obligations of each compact member and shall 
     provide for its management of rail services in the Northeast 
     Corridor.
       (f) Federal Interest Requirements for Compact.--The 
     provisions of the Compact shall hold the United States 
     Government harmless as to the actions of the Compact under 
     the lease of rights to the Northeast Corridor by the United 
     States Government.
       (g) Compact Borrowing Authority.--
       (1) The borrowing authority provisions of the Compact may 
     authorize it to issue bonds or other debt instruments from 
     time to time at its discretion for purposes that include 
     paying any part of the cost of rail service improvements, 
     construction, and rehabilitation and the acquisition of real 
     and personal property, including operating equipment, except 
     that debt issued by the Compact may be secured only by 
     revenues to the Compact and may not be a debt of a 
     participating State, the District of Columbia, or the Federal 
     Government.
       (2) The debt authorized by this subsection shall under no 
     circumstances be backed by the full faith and credit of the 
     United States, and a grant made under the authority of this 
     Act or under the authority of part C of subtitle V of title 
     49, United States Code, shall include an express 
     acknowledgement by the grantee that the debt does not 
     constitute an obligation of the United States.
       (h) Adoption of Compact; Turnover.--
       (1) In general.--The participating States and the District 
     of Columbia shall adopt a final compact agreement within 5 
     years after

[[Page S1061]]

     the date of enactment of this Act, and the Compact shall 
     thereafter assume responsibility for the Northeast Corridor 
     operations on a date that is not later than 6 months after 
     adoption of the Compact.
       (2) Operations.--Upon leasing the Northeast Corridor to the 
     Compact, the Secretary shall assign to the Compact and the 
     Compact shall assume the then-current contract for operation 
     of the Northeast Corridor. Upon the termination of that 
     contract, the Compact may make such arrangements for 
     operation of the Northeast Corridor as it sees fit consistent 
     with its lease and this Act. If the Compact chooses to use a 
     contractor to operate the Northeast Corridor, the contract 
     shall be awarded competitively.
       (3) Maintenance.--Upon leasing the Northeast Corridor to 
     the Compact, the Secretary shall assign to the Compact and 
     the Compact shall assume the then-current contract for 
     maintenance of the Northeast Corridor. Upon the termination 
     of that contract, the Compact may make such arrangements for 
     maintenance of the Northeast Corridor as it sees fit 
     consistent with its lease and this Act. If the Compact 
     chooses to use a contractor to maintain the Northeast 
     Corridor, the contract shall be awarded competitively.
       (4) Non-compact alternative.--In the event that the 
     participating States and the District of Columbia do not 
     adopt the final compact agreement and make it operational 
     under the schedule set forth in this section, the Secretary 
     of Transportation, through a competitive bidding process, may 
     contract with another public or private entity to manage the 
     Northeast Corridor, with a goal of maximizing the return to 
     the Federal government from such operations.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation to 
     carry out this section--
       (1) $3,000,000 for fiscal year 2005, and
       (2) $2,000,000 for fiscal year 2006,

     such sums to remain available until expended.

     SEC. 625. SHUT-DOWN OF COMMUTER OR FREIGHT OPERATIONS.

       (a) In General.--Section 11123 is amended by striking 
     ``National Railroad Passenger Corporation'' each place it 
     appears and inserting ``American Passenger Railway 
     Corporation''.
       (b) Authorization of Appropriations.--From the funds made 
     available for the American Passenger Railway Corporation for 
     fiscal years 2005 through 2010, the Secretary of 
     Transportation shall in each fiscal year hold in reserve such 
     sums as may be necessary to carry out directed service orders 
     issued under section 1123 of title 49, United States Code, to 
     respond to the shut-down of commuter rail operations or 
     freight operations due to a shut-down of operations by the 
     American Passenger Railway Corporation. The Secretary shall 
     make the reserved funds available through an appropriate 
     grant instrument during the fourth quarter of each fiscal 
     year to the extent that no grant orders have been issued by 
     the Surface Transportation Board during that fiscal year 
     prior to the date of transfer of the reserved funds or there 
     is a balance of reserved funds not needed by the Board to pay 
     for any directed service order in that fiscal year.
       (c) Effective Date for Subsection (a).--The amendment made 
     by subsection (a) shall take effect on the date, determined 
     by the Secretary of Transportation, on which the 
     restructuring required by sections 24300, 24300A, and 24300B 
     of title 49, United States Code, is completed.

     SEC. 626. CAPITAL GRANTS FOR NORTHEAST CORRIDOR.

       (a) In General.--Chapter 243, as amended by section 615, is 
     amended by adding at the end the following:

     ``Sec. 24318. Capital authorizations for the Northeast 
       Corridor

       ``(a) In General.--The Secretary of Transportation, in 
     consultation with State and regional transportation 
     officials, shall develop and implement a capital program to 
     restore the rail infrastructure on the mainline Northeast 
     Corridor between Boston, Massachusetts, and Washington, 
     District of Columbia, to a state of good repair.
       ``(b) Authorization of Appropriations for Capital Projects 
     on the Northeast Corridor.--There are authorized to be 
     appropriated to the Secretary of Transportation to make 
     capital grants under this section $200,000,000 for fiscal 
     year 2005 and $300,000,000 for each of fiscal years 2006 
     through 2010.
       ``(c) Achievement of State-of-Good-Repair on Northeast 
     Corridor.--
       ``(1) Use of funds.--Sums authorized for the Northeast 
     Corridor under subsection (b) may be used solely for the 
     purpose of funding deferred maintenance and safety projects, 
     including the negotiated Federal share for life-safety 
     improvements in the New York Penn Station tunnels.
       ``(2) State of good repair.--The Northeast Corridor shall 
     be considered to be in a state of good repair upon the 
     completion of the capital program developed under 
     subsection (a).''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     243, as amended by section 615, is amended by adding at the 
     end thereof the following:

``24318. Capital authorizations for the Northeast Corridor''.

                        Part 3--Related Matters

     SEC. 631. FAIR AND OPEN COMPETITION.

       (a) In General.--The Secretary of Transportation shall 
     consult with States that competitively bid intercity 
     passenger rail services to ensure that their bidding 
     processes provide for fair and open competition for all 
     bidders, including the American Passenger Railway 
     Corporation.
       (b) Use of Federal or State Funds.--The Secretary shall 
     ensure that the American Passenger Railway Corporation may 
     not use Federal or State financial support for a passenger 
     rail route to subsidize a competitive bid to operate 
     intercity passenger rail service on another route.

     SEC. 632. ACCESS TO OTHER RAILROADS.

       (a) Terms and Conditions for Access to Other Railroads.--
       (1) Existing routes and frequencies.--
       (A) In general.--The National Railroad Passenger 
     Corporation shall be responsible for negotiating the terms 
     and conditions under which the American Passenger Railway 
     Corporation, a State, or other entity may access the property 
     of any freight railroad to provide intercity passenger rail 
     service over routes operated by Amtrak on the day before the 
     date, determined by the Secretary of Transportation, on which 
     the restructuring required by sections 24300, 24300A, and 
     24300B of title 49, United States Code, is completed at the 
     frequencies in effect on that clay.
       (B) Preservation of railroad benefits.--The access and 
     liability terms and conditions of the contracts between the 
     National Railroad Passenger Corporation and railroads 
     following that restructuring shall be no less favorable to 
     the host railroads than the access and liability terms and 
     conditions under contracts in effect on the day before the 
     date, as so determined by the Secretary, on which the 
     restructuring is completed.
       (C) Incentive payments; penalties.--The Secretary shall 
     retain a system of incentive payments and performance 
     penalties in negotiating compensation payments to freight 
     railroads under subparagraph (A) that encourages on-time 
     performance.
       (3) Conditions for new routes and train frequencies.--
       (A) In general.--The terms and conditions for the operation 
     of a new intercity passenger rail route or frequency added 
     after the date of enactment of this Act shall be determined 
     by negotiation and mutual agreement between the host railroad 
     and the operator or sponsor of the route or frequency to be 
     added, with no preferential right of access.
       (B) Standard of compensation.--The standard of compensation 
     for the rental change shall be fully allocated costs, 
     excluding capital investments associated with an added route 
     or frequency.
       (C) Failure of negotiation.--If the parties cannot agree on 
     the terms and conditions of the rental charge, either party 
     may seek a prescription of appropriate terms and conditions 
     under section 24308 of title 49, United States Code.
       (b) Fitness Qualifications for passenger rail.--
       (1) In general.--No person may operate intercity passenger 
     rail service over freight railroad property unless that 
     person demonstrates to the satisfaction of the Secretary of 
     Transportation that--
       ``(A) its intercity passenger rail operations will meet all 
     applicable Federal safety rules and regulations;
       ``(B) it will operate the service on a sound financial 
     basis; and
       ``(C) it has the technical expertise to operate intercity 
     passenger rail service.''.
       (2) Minimum standards.--Within 6 months after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     by regulation establish minimum safety and financial 
     qualifications for operators of intercity passenger rail 
     service.

     SEC. 633. LIMITATIONS ON RAIL PASSENGER TRANSPORTATION 
                   LIABILITY.

       Section 28103 is amended by striking ``Amtrak shall 
     maintain a total'' in subsection (c) and inserting ``each 
     operator of intercity passenger rail service shall 
     maintain''.

     SEC. 634. TRAIN OPERATIONS INSURANCE POOL.

       (a) In general.--Chapter 281 is amended by adding at the 
     end the following:

     ``Sec. 28104. Train operations insurance pool

       ``(a) In General.--The Secretary of Transportation is 
     authorized to encourage and otherwise assist insurance 
     companies and other insurers that meet the requirements 
     prescribed under subsection (b) of this section to form, 
     associate, or otherwise join together in a pool--
       ``(1) to provide the insurance coverage required by section 
     28103; and
       ``(2) for the purpose of assuming, on such terms and 
     conditions as may be agreed upon, such financial 
     responsibility as will enable such companies and other 
     insurers to assume a reasonable proportion of responsibility 
     for the adjustment and payment of claims under section 28103.
       ``(b) Regulations To Establish Insurer Qualification 
     Requirements.--In order to promote the effective 
     administration of the intercity rail passenger program, and 
     to assure that the objectives of this chapter are furthered, 
     the Secretary is authorized to prescribe requirements for 
     insurance companies and other insurers participating in an 
     insurance pool under subsection (a), including minimum 
     requirements for capital or surplus or assets.
       (c) Authority To Collect and Pay Premiums and Other 
     Costs.--In order to provide adequate insurance coverage at 
     affordable cost to operators of intercity passenger rail 
     service at no cost to the United States, the Secretary is 
     authorized to divide the insurance premiums and all other 
     costs of forming

[[Page S1062]]

     and operating the insurance pool created pursuant to this 
     section, including the costs of any contractors or 
     consultants the Secretary may hire, among all the operators 
     of intercity passenger rail service and collect from each 
     operator of intercity passenger rail service the insurance 
     premiums and other costs the Secretary has allocated to it. 
     Notwithstanding any other provisions of law, the Secretary 
     may receive funds collected under this section directly from 
     each operator of intercity passenger rail service, credit the 
     appropriation charged for the insurance premiums and other 
     costs of forming and operating the insurance pool, and use 
     those funds to pay insurance premiums and other costs of 
     forming and operating the insurance pool, including the costs 
     of any contractors or consultants the Secretary may hire. The 
     Secretary may advance such sums as may be necessary to pay 
     insurance premiums and other costs of forming and operating 
     the insurance pool from unobligated balances available to the 
     Federal Railroad Administration for intercity passenger rail 
     service, to be reimbursed from payments received from 
     operators of intercity passenger rail service. Where the 
     Secretary is making a grant of operating funds for a route, 
     the Secretary may collect the insurance premiums and other 
     costs the Secretary has allocated to it by withholding those 
     funds from the grant and crediting them to the appropriation 
     charged for the insurance premiums and other costs of forming 
     and operating the insurance pool.

     ``Sec. 28105. Use of insurance pool, companies, or other 
       private organizations for certain payments

       ``(a) Authorization To Enter into Contracts for Certain 
     Requirements.--In order to provide for maximum efficiency in 
     the administration of the intercity rail passenger program, 
     the Secretary of 'Transportation may enter into contracts 
     with the pool formed or otherwise created under section 
     28104, or any insurance company or other private 
     organizations, for the purpose of securing performance by 
     such pool, company, or organization of any or all of the 
     following responsibilities:
       ``(1) Estimating and later determining any amounts of 
     payments to be made.
       ``(2) Receiving from the Secretary, disbursing, and 
     accounting for payments of insurance premiums.
       ``(3) Making such audits of the records of any insurance 
     company or other insurer, insurance agent or broker, or 
     insurance adjustment organization as may be necessary to 
     assure that proper payments are made.
       ``(4) Otherwise assisting in such manner as the contract 
     may provide to further the purposes of this chapter.
       ``(b) Terms and Conditions of Contract.--Any contract with 
     the pool or an insurance company or other private 
     organization under this section may contain such terms and 
     conditions as the Secretary finds necessary or appropriate 
     for carrying out responsibilities under subsection (a) of 
     this section, and may provide for payment of any costs which 
     the Secretary determines are incidental to carrying out such 
     responsibilities which are covered by the contract.
       ``(e) Competitive Bidding.--Any contract entered into under 
     subsection (a) of this section may be entered into without 
     regard to section 5 of title 41 or any other provision of law 
     requiring competitive bidding.
       ``(d) Findings of Secretary.--No contract may be entered 
     into under this section unless the Secretary finds that the 
     pool, company, or organization will perform its obligations 
     under the contract efficiently and effectively, and will meet 
     such requirements as to financial responsibility, legal 
     authority, and other matters as the Secretary finds 
     pertinent.
       ``(e) Bond; Liability of Certifying Officers and Disbursing 
     Officers.--
       ``(1) Surety bond.--Any contract entered into under 
     subsection (a) of this section may require the pool, company, 
     or organization or any of its officers or employees 
     certifying payments or disbursing funds pursuant to the 
     contract, or otherwise participating in carrying out the 
     contract, to give surety bond to the United States in such 
     amount as the Secretary may deem appropriate.
       ``(2) Personal liability for certification.--No individual 
     designated pursuant to a contract under this section to 
     certify payments shall, in the absence of gross negligence or 
     intent to defraud the United States, be liable with respect 
     to any payment certified by that individual under this 
     section.
       ``(3) Personal liability for payment.--No officer 
     disbursing funds shall in the absence of gross negligence or 
     intent to defraud the United States, be liable with respect 
     to any payment by that officer under this section if it was 
     based upon a voucher signed by an individual designated to 
     certify such payments.
       ``(f) Term of Contract; Renewals; Termination.--Any 
     contract entered into under this section shall be for a term 
     of 1 year, and may be made automatically renewable from term 
     to term in the absence of notice by either party of an 
     intention to terminate at the end of the current term; except 
     that the Secretary may terminate any such contract at any 
     time (after reasonable notice to the pool, company, or 
     organization involved) if the Secretary finds that the pool, 
     company, or organization has failed substantially to carry 
     out the contract, or is carrying out the contract in a manner 
     inconsistent with the efficient and effective administration 
     of the intercity rail passenger program.

     ``Sec. 28106. Reinsurance coverage

       ``(a) Availability for Excess Losses.--The Secretary of 
     Transportation is authorized to take such action as may be 
     necessary in order to make available, to the pool formed or 
     otherwise created under section 28104, reinsurance for losses 
     which are in excess of losses assumed by such pool in 
     accordance with the excess loss agreement entered into under 
     subsection (c) of this section.
       ``(b) Availability Pursuant to Contract, Agreement, or 
     Other Arrangement; Payment of Premium, Fee, or Other 
     Charge.--Reinsurance shall be made available pursuant to 
     contract, agreement, or any other arrangement, in 
     consideration of such payment of a premium, fee, or other 
     charge as the Secretary finds necessary to cover anticipated 
     losses and other costs of providing such reinsurance.
       ``(c) Excess Loss Agreement; Negotiation.--The Secretary is 
     authorized to negotiate an excess loss agreement, from time 
     to time, under which the amount of insurance retained by the 
     pool, after ceding reinsurance, shall be adequate to further 
     the purposes of this chapter, consistent with the objective 
     of maintaining appropriate financial participation and risk 
     sharing to the maximum extent practicable on the part of 
     participating insurance companies and other insurers.
       ``(d) Submission of Excess Losses on Portfolio Basis.--All 
     reinsurance claims for losses in excess of losses assumed by 
     the pool shall be submitted on a portfolio basis by such pool 
     in accordance with terms and conditions established by the 
     Secretary.''.
       (b) Conforming Amendments.--
       (1) Chapter 281 is amended by striking ``LAW ENFORCEMENT'' 
     in the chapter heading and inserting ``LAW ENFORCEMENT; 
     LIABILITY; INSURANCE''.
       (2) The part analysis of subtitle V is amended by striking 
     the item relating to chapter 281 and inserting, the 
     following:

``281. Law enforcement; liability; insurance...............28101''.....

       (3) The table of contents of the title is amended by 
     striking the item relating to chapter 281 and inserting the 
     following:

``281. Law enforcement; liability; insurance...............28101''.....

       (4) The chapter analysis for chapter 281 is amended by 
     adding at the end the following:

``28104. Train operations insurance pool
``28105. Use of insurance pool, companies, or other private 
              organizations for certain payments
``28106. Reinsurance coverage''.

     SEC. 635. COLLECTIVE BARGAINING ARRANGEMENTS.

       (a) Status as Employer or Carrier.--
       (1) In general.--Any entity providing intercity passenger 
     railroad transportation (within the meaning of section 20102 
     of title 49, United States Code) that begins operations after 
     the date of enactment of this Act shall be considered an 
     employer for purposes of the Railroad Retirement Act of 1974 
     (45 U.S.C. 231 et seq.) and considered a carrier for purposes 
     of the Railway Labor Act (45 U.S.C. 151 et seq.).
       (2) Collective bargaining agreement.--Any entity providing 
     intercity passenger railroad transportation (within the 
     meaning of section 20102 of title 49, United States Code) 
     that begins operations after the date of enactment of this 
     Act and replaces intercity rail passenger service that was 
     provided by another entity as of the date of enactment of 
     this Act, shall enter into an agreement with the 
     authorized bargaining agent or agents for employees of the 
     predecessor provider that--
       (A) gives each employee of the predecessor provider 
     priority in hiring according to the employee's seniority on 
     the predecessor provider for each position with the replacing 
     entity that is in the employee's craft or class and is 
     available within three years after the termination of the 
     service being replaced;
       (B) establishes a procedure for notifying such an employee 
     of such positions;
       (C) establishes a procedure for such an employee to apply 
     for such positions; and
       (D) establishes rates of pay, rules, and working 
     conditions.
       (3) Replacement of existing rail passenger service.--
       (A) Negotiations.--An entity providing replacement 
     intercity rail passenger service under paragraph (2) shall 
     give written notice of its plan to replace existing rail 
     passenger service to the authorized collective bargaining 
     agent or agents for the employees of the predecessor provider 
     at least 90 days prior to the date it plans to commence 
     service. Within 5 days after the date of receipt of such 
     written notice, negotiations between the replacing entity and 
     the collective bargaining agent or agents for the employees 
     of the predecessor provider shall commence for the purpose of 
     reaching agreement with respect to all matters set forth in 
     subparagraphs (A) through (D) of paragraph (2). The 
     negotiations shall continue for 30 days or until an agreement 
     is reached, whichever is sooner. If at the end of 30 days the 
     parties have not entered into an agreement with respect to 
     all such matters, the unresolved issues shall be submitted 
     for arbitration in accordance with the procedure set forth in 
     subparagraph (B).
       (B) Arbitration.--If an agreement has not been entered into 
     with respect to all matters set forth in subparagraphs (A) 
     through (D) of

[[Page S1063]]

     paragraph (2) as provided in subparagraph (A) of this 
     paragraph, the parties shall select an arbitrator. If the 
     parties are unable to agree upon the selection of such 
     arbitrator within 5 days, either or both parties shall notify 
     the National Mediation Board, which shall provide a list of 7 
     arbitrators with experience in arbitrating rail labor 
     protection disputes. Within 5 days after such notification, 
     the parties shall alternately strike names from the list 
     until only one name remains, and that person shall serve as 
     the neutral arbitrator. Within 45 days after selection of the 
     arbitrator, the arbitrator shall conduct a hearing on the 
     dispute and shall render a decision with respect to the 
     unresolved issues set forth in subparagraphs (A) through (D) 
     of paragraph (2). This decision shall be final, binding, and 
     conclusive upon the parties. The salary and expenses of the 
     arbitrator shall be borne equally by the parties, but all 
     other expenses shall be paid by the party incurring them.
       (C) Service commencement.--An entity providing replacement 
     intercity rail passenger service under paragraph (2) shall 
     commence service only after an agreement is entered into with 
     respect to the matters set forth in subparagraphs (A) through 
     (D) of paragraph (2) or the decision of the arbitrator has 
     been rendered.
       (b) Regulations.--Not later than 6 months after the date of 
     the enactment of this Act, the Secretary of Transportation 
     shall issue regulations for carrying out this section.

                      Subtitle B--Rail Development

     SEC. 651. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL 
                   SERVICE.

       (a) In General.--Part C of subtitle V is amended by 
     inserting after chapter 243 the following:

   ``CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL 
                               ASSISTANCE

``Sec.
``24401. Definitions
``24402. Capital investment grants to support intercity passenger rail 
              service
``24403. Project management oversight
``24404. Operating expenses
``24405. Local share and maintenance of effort
``24406. Grants for maintenance and modernization

     ``Sec. 24401. Definitions

       ``In this chapter:
       ``(1) Applicant.--The term `applicant' means a State, a 
     group of States, including an Interstate Compact formed under 
     section 410 of the Amtrak Reform and Accountability Act of 
     1997 (49 U.S.C. 24101 note), or a public corporation, board, 
     commission, or agency established by one or more 
     States designated as the lead agency of a State for 
     providing intercity passenger rail service.
       ``(2) Capital project.--The term `capital project' means a 
     project for--
       ``(A) acquiring or constructing equipment or a facility for 
     use in intercity passenger rail service, expenses incidental 
     to the acquisition or construction (including designing, 
     inspecting, supervising, engineering, location surveying, 
     mapping, environmental studies, and acquiring rights-of-way), 
     alternatives analysis related to the development of such 
     train services, capacity improvements on the property over 
     which the service will be conducted, passenger rail-related 
     intelligent transportation systems, highway-rail grade 
     crossing improvements or closures on routes used for 
     intercity passenger rail service, relocation assistance, 
     acquiring replacement housing sites, and acquiring, 
     constructing, relocating, and rehabilitating replacement 
     housing;
       ``(B) rehabilitating or remanufacturing rail rolling stock 
     and associated facilities used primarily in intercity 
     passenger rail service;
       ``(C) leasing equipment or a facility for use in intercity 
     passenger rail service, subject to regulations (to be 
     prescribed by the Secretary of Transportation) limiting such 
     leasing arrangements to arrangements that are more cost-
     effective than purchase or construction;
       ``(D) modernizing existing intercity passenger rail service 
     facilities and information systems;
       ``(E) the introduction of new technology, through 
     innovative and improved products, other than magnetic 
     levitation; or
       ``(F) defraying, with respect to new service established 
     under section 24402, the cost of rental charges to freight 
     railroads.
       ``(3) Intercity corridor passenger rail service.--The term 
     `intercity corridor passenger rail service' means the 
     transportation of passengers between major metropolitan areas 
     by rail, including high-speed rail (as defined in section 
     26105(2) of this title), in corridors of 300 miles or less in 
     length with trip times of 4 hours or less, and multiple 
     frequencies daily.
       ``(4) Net project cost.--The term `net project cost' means 
     that portion of the cost of a project than cannot be financed 
     from revenues reasonably expected to be generated by the 
     project.

     ``Sec. 24402. Capital investment grants to support new 
       intercity passenger rail service

       ``(a) General Authority.--
       ``(1) Grants.--The Secretary of Transportation may make 
     grants under this section to an applicant to assist in 
     financing capital investments for new high-speed intercity 
     passenger rail service, the establishment of new, 
     conventional services, or the expansion of existing high-
     speed or conventional service by adding additional 
     frequencies.
       ``(2) Terms and conditions.--The Secretary shall require 
     that a grant under this section be subject to the terms, 
     conditions, requirements, and pro visions the Secretary 
     decides are necessary or appropriate for the purposes of this 
     section, including requirements for the disposition of net 
     increases in value of real property resulting from the 
     project assisted under this section.
       ``(3) Application with chapter 53.--A grant under this 
     section may not be made for a project or program of projects 
     that qualifies for financial assistance under chapter 53 of 
     this title.
       ``(b) Project as Part of Approved Program.--
       ``(1) In general.--The Secretary may not approve a grant 
     for a project under this section unless the Secretary finds 
     that the project is part of an approved corridor plan and 
     program developed under section 135 of title 23 and that the 
     applicant or recipient has or will have the legal, financial, 
     and technical capacity to carry out the project (including 
     safety and security aspects of the project), satisfactory 
     continuing control over the use of the equipment or 
     facilities, and the capability and willingness to maintain 
     the equipment or facilities.
       ``(2) Eligibility information.--An applicant shall provide 
     sufficient information upon which the Secretary can make the 
     findings required by this subsection.
       ``(3) Proposed operator justification.--If an applicant has 
     not selected the proposed operator of its service 
     competitively, the applicant shall provide written 
     justification to the Secretary showing why the proposed 
     operator is the best, taking into account price and other 
     factors, and that use of the proposed operator will not 
     increase the capital cost of the project.
       ``(4) Rail agreement.--The Secretary of Transportation may 
     not approve a grant under this section unless the applicant 
     demonstrates that the railroad or railroads over which the 
     intercity passenger rail service will operate concur with the 
     applicant's operating plans and infrastructure improvement 
     requirements.
       ``(c) Criteria for Grants for Intercity Corridor Passenger 
     Rail Projects.--
       ``(1) In general.--The Secretary may approve a grant under 
     this section for a capital project only if the Secretary 
     determines that the proposed project is--
       ``(A) based on the results of an alternatives analysis and 
     preliminary engineering;
       ``(B) justified based on a comprehensive review of its 
     mobility improvements, environmental benefits, cost 
     effectiveness, and operating efficiencies; and
       ``(C) supported by an acceptable degree of State and local 
     financial commitment, including evidence of stable and 
     dependable financing sources to construct, maintain, and 
     operate the system or extension.
       ``(2) Alternatives analysis and preliminary engineering.--
     In evaluating a project under paragraph (1)(A), the Secretary 
     shall analyze and consider the results of the alternatives 
     analysis and preliminary engineering for the project.
       ``(3) Project justification.--In evaluating a project under 
     paragraph (1)(B), the Secretary shall--
       ``(A) consider the direct and indirect costs of relevant 
     alternatives;
       ``(B) consider the ability of the service to compete with 
     other modes of transportation;
       ``(C) consider the extent to which the project fills an 
     unmet transportation need;
       ``(D) consider the ability of the service to fund its 
     operating expenses from fare revenues;
       ``(E) consider population density in the corridor;
       ``(F) consider the technical capability of the grant 
     recipient to construct the project;
       ``(G) consider factors such as congestion relief, improved 
     mobility, air pollution, noise pollution, energy consumption, 
     and all associated ancillary and mitigating cost increases 
     necessary to carry out each alternative analyzed;
       ``(H) consider the level of private sector financial 
     participation and risk sharing in the project;
       ``(I) adjust the project justification to reflect 
     differences in local land, construction, and operating costs; 
     and
       ``(J) consider other factors that the Secretary determines 
     appropriate to carry out this chapter.
       ``(4) Local financial commitment.--
       ``(A) Evaluation of project.--In evaluating a project under 
     paragraph (1)(C), the Secretary shall require that--
       ``(i) the proposed project plan provides for the 
     availability of contingency amounts that the Secretary 
     determines to be reasonable to cover unanticipated cost 
     increases;
       ``(ii) each proposed State or local source of capital and 
     operating financing is stable, reliable, and available within 
     the proposed project timetable; and
       ``(iii) State or local resources are available to operate 
     the proposed service.
       ``(B) Considerations.--In assessing the stability, 
     reliability, and availability of proposed sources of local 
     financing under subparagraph (A), the Secretary shall 
     consider--
       ``(i) existing grant commitments;
       ``(ii) the degree to which financing sources are dedicated 
     to the purposes proposed;
       ``(iii) any debt obligation that exists or is proposed by 
     the applicant for the proposed project or other intercity 
     passenger rail service purpose; and
       ``(iv) the extent to which the project has a local 
     financial commitment that exceeds the required non-Federal 
     share of the cost of the project.
       ``(5) Regulations.--Not later than 120 days after the date 
     of enactment of the Rail Passenger Service Restructuring, 
     Reauthorization, and Development Act, the Secretary

[[Page S1064]]

     shall issue regulations on the manner in which the Secretary 
     will evaluate and rate the projects based on the results of 
     alternatives analysis, project justification, and the degree 
     of local financial commitment, as required under this 
     subsection.
       ``(6) Project evaluation and rating.--A proposed project 
     may advance from alternatives analysis to preliminary 
     engineering, and may advance from preliminary engineering to 
     final design and construction, only if the Secretary finds 
     that the project meets the requirements of this section 
     and there is a reasonable likelihood that the project will 
     continue to meet such requirements. In making such 
     findings, the Secretary shall evaluate and rate the 
     project as `highly recommended', `recommended', or `not 
     recommended', based on the results of alternatives 
     analysis, the project justification criteria, and the 
     degree of local financial commitment, as required under 
     this subsection. In rating the projects, the Secretary 
     shall provide, in addition to the overall project rating, 
     individual ratings for each of the criteria established 
     under the regulations issued under paragraph (5).
       ``(7) Pull funding grant agreement.--A project financed 
     under this subsection shall be carried out through a full 
     funding grant agreement. The Secretary shall enter into a 
     full funding grant agreement based on the evaluations and 
     ratings required under this subsection. The Secretary shall 
     not enter into a full funding grant agreement for a project 
     unless that project is authorized for final design and 
     construction.
       ``(d) Letters of Intent, Full Funding Grant Agreements, and 
     Early Systems Work Agreements.--
       ``(1) Letter of intent.-- 
       ``(A) The Secretary may issue a letter of intent to an 
     applicant announcing an intention to obligate, for a project 
     under this section, an amount from future available budget 
     authority specified in law that is not more than the amount 
     stipulated as the financial participation of the Secretary in 
     the project.
       ``(B) At least 60 days before issuing a letter under 
     subparagraph (A) of this paragraph or entering into a full 
     funding grant agreement, the Secretary shall notify in 
     writing the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure, and the House of 
     Representatives and Senate Committees on Appropriations of 
     the proposed letter or agreement. The Secretary shall include 
     with the notification a copy of the proposed letter or 
     agreement as well as the evaluations and ratings for the 
     project.
       ``(C) The issuance of a letter is deemed not to be an 
     obligation under sections 1108(c) and (d), 1501, and 1502(a) 
     of title 31, or an administrative commitment.
       ``(D) An obligation or administrative commitment may be 
     made only when amounts are appropriated.
       ``(2) Full funding agreement.--
       ``(A) The Secretary may make a full funding grant agreement 
     with an applicant. The agreement shall--
       ``(i) establish the terms of participation by the United 
     States Government in a project under this section;
       ``(ii) establish the maximum amount of Government financial 
     assistance for the project, which, with respect to a high-
     speed rail project, shall be sufficient to complete at least 
     an operable segment;
       ``(iii) cover the period of time for completing the 
     project, including a period extending beyond the period of an 
     authorization; and
       ``(iv) make timely and efficient management of the project 
     easier according to the law of the United States.
       ``(B) An agreement under this paragraph obligates an amount 
     of available budget authority specified in law and may 
     include a commitment, contingent on amounts to be specified 
     in law in advance for commitments under this paragraph, to 
     obligate an additional amount from future available budget 
     authority specified in law. The agreement shall state that 
     the contingent commitment is not an obligation of the 
     Government and is subject to the availability of 
     appropriations made by Federal law and to Federal laws in 
     force on or enacted after the date of the contingent 
     commitment. Interest and other financing costs of efficiently 
     carrying out a part of the project within a reasonable time 
     are a cost of carrying out the project under a full funding 
     grant agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms.
       ``(3) Early systems work agreement.--
       ``(A) The Secretary may make an early systems work 
     agreement with an applicant if a record of decision under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) has been issued on the project and the Secretary finds 
     there is reason to believe--
       ``(i) a full funding grant agreement for the project will 
     be made; and
       ``(ii) the terms of the work agreement will promote 
     ultimate completion of the project more rapidly and at less 
     cost.
       ``(B) A work agreement under this paragraph obligates an 
     amount of available budget authority specified in law and 
     shall provide for reimbursement of preliminary costs of 
     carrying out the project, including land acquisition, timely 
     procurement of system elements for which specifications are 
     decided, and other activities the Secretary decides are 
     appropriate to make efficient, long-term project management 
     easier. A work agreement shall cover the period of time the 
     Secretary considers appropriate. The period may extend beyond 
     the period of current authorization. Interest and other 
     financing costs of efficiently carrying out the work 
     agreement within a reasonable time are a cost of carrying out 
     the agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms. If 
     an applicant does not carry out the project for reasons 
     within the control of the applicant, the applicant shall 
     repay all Government payments made under the work agreement 
     plus reasonable interest and penalty charges the Secretary 
     establishes in the agreement.
       ``(4) Limit on total obligations and commitments.--The 
     total estimated amount of future obligations of the 
     Government and contingent commitments to incur obligations 
     covered by all outstanding letters of intent, full funding 
     grant agreements, and early systems work agreements under 
     this section, when combined with obligations under section 
     5309 of this title, may be not more than the amount 
     authorized under section 5338(b) of this title, less an 
     amount the Secretary reasonably estimates is necessary for 
     grants under this section not covered by a letter. The total 
     amount covered by new letters and contingent commitments 
     included in full funding grant agreements and early systems 
     work agreements may be not more than a limitation specified 
     in law.
       ``(e) Federal Share of Net Project Cost.--
       ``(1) In general.--
       ``(A) Based on engineering studies, studies of economic 
     feasibility, and information on the expected use of equipment 
     or facilities, the Secretary shall estimate the net project 
     cost.
       ``(B) A grant for the project may be for up to 50 percent 
     of the net project cost. The remainder shall be provided in 
     cash from non-Federal sources.
       ``(f) Undertaking Projects in Advance.--
       ``(1) In general.--The Secretary may pay the Federal share 
     of the net capital project cost to an applicant that carries 
     out any part of a project described in this section according 
     to all applicable procedures and requirements if--
       ``(A) the applicant applies for the payment,
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out a part of the project, the 
     Secretary approves the plans and specifications for the part 
     in the same way as other projects under this section.
       ``(2) Interest costs.--The cost of carrying out part of a 
     project includes the amount of interest earned and payable on 
     bonds issued by the applicant to the extent proceeds of the 
     bonds are expended in carrying out the part. The amount of 
     interest includable as cost under this paragraph may not be 
     more than the most favorable interest terms reasonably 
     available for the project at the time of borrowing. The 
     applicant shall certify, in a manner satisfactory to the 
     Secretary, that the applicant has shown reasonable diligence 
     in seeking the most favorable financial terms.
       ``(3) Use of cost indices.--The Secretary shall consider 
     changes in capital project cost indices when determining the 
     estimated cost under paragraph (2) of this subsection.
       ``(g) Funding.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary of 
     Transportation for purposes of this section--
       ``(A) $525,000,000 for fiscal year 2006,
       ``(B) $550,000,000 for fiscal year 2007,
       ``(C) $675,000,000 for fiscal year 2008,
       ``(D) $750,000,000 for fiscal year 2009, and
       ``(E) $800,000,000 for fiscal year 2010, such sums to 
     remain available until expended.

     ``Sec. 24403. Project management oversight

       ``(a) Project Management Plan Requirements.--To receive 
     Federal financial assistance for a major capital project 
     under this chapter, an applicant shall prepare and carry out 
     a project management plan approved by the Secretary of 
     Transportation. The plan shall provide for--
       ``(1) adequate recipient staff organization with well-
     defined reporting relationships, statements of functional 
     responsibilities, job descriptions, and job qualifications;
       ``(2) a budget covering the project management 
     organization, appropriate consultants, property acquisition, 
     utility relocation, systems demonstration staff, audits, and 
     miscellaneous payments the recipient may be prepared to 
     justify;
       ``(3) a construction schedule for the project;
       ``(4) a document control procedure and recordkeeping 
     system;
       ``(5) a change order procedure that includes a documented, 
     systematic approach to handling the construction change 
     orders;
       ``(6) organizational structures, management skills, and 
     staffing levels required throughout the construction phase;
       ``(7) quality control and quality assurance functions, 
     procedures, and responsibilities for construction, system 
     installation, and integration of system components;

[[Page S1065]]

       ``(8) material testing policies and procedures;
       ``(9) internal plan implementation and reporting 
     requirements,
       ``(10) criteria and procedures to be used for testing the 
     operational system or its major components;
       ``(11) periodic updates of the plan, especially related to 
     project budget and project schedule, financing, and ridership 
     estimates; and
       ``(12) the recipient's commitment to submit a project 
     budget and project schedule to the Secretary each month.
       ``(b) Plan Approval.--
       ``(1) 60-day decision.--The Secretary shall approve or 
     disapprove a plan not later than 60 days after it is 
     submitted. If the approval process cannot be completed within 
     60 days, the Secretary shall notify the recipient, explain 
     the reasons for the delay, and estimate the additional time 
     that will be required.
       ``(2) Explanation of disapproval.--If the Secretary 
     disapproves a plan, the Secretary shall inform the applicant 
     of the reasons for disapproval of the plan.
       ``(c) Secretarial Oversight.--
       ``(1) In general.--The Secretary may use no more than 0.5 
     percent of amounts made available in a fiscal year for 
     capital projects under this chapter to enter into contracts 
     to oversee the construction of such projects.
       ``(2) Use of funds.--The Secretary may use amounts 
     available under paragraph (1) of this subsection to make 
     contracts for safety, procurement, management, and financial 
     compliance reviews and audits of a recipient of amounts under 
     paragraph (1).
       ``(3) Federal share.--The Federal Government shall pay the 
     entire cost of carrying out a contract under this subsection.
       ``(d) Access to Sites and Records.--Each recipient of 
     assistance under this chapter shall provide the Secretary and 
     a contractor the Secretary chooses under subsection (b) of 
     this section with access to the construction sites and 
     records of the recipient when reasonably necessary.
       ``(e) Regulations.--The Secretary shall prescribe 
     regulations necessary to carry out this section. The 
     regulations shall include--
       ``(1) a definition of `major capital project' for this 
     section;
       ``(2) a requirement that oversight begin during the 
     preliminary engineering stage of a project, unless the 
     Secretary finds it more appropriate to begin oversight during 
     another stage of a project, to maximize the transportation 
     benefits and cost savings associated with project management 
     oversight; and
       ``(3) a formula based on infrastructure ownership, 
     boardings, and passenger-miles traveled in the prior fiscal 
     year by which the funds authorized for modernization of 
     existing services will be allocated among the States; and
       ``(4) a requirement that, if a State does not apply for its 
     share of formula grant funds under paragraph (3) of this 
     subsection in a timely manner, those funds will be made 
     available to other States.
       ``(f) Financial Plan.--A recipient of financial assistance 
     for a project under this section with an estimated total cost 
     of $100,000,000, or more shall submit to the Secretary an 
     annual financial plan for the project. The plan shall be 
     based on detailed annual estimates of the cost to complete 
     the remaining elements of the project and on reasonable 
     assumptions, as determined by the Secretary, of future 
     increases in the cost to complete the project.

     ``Sec. 24404. Operating expenses

       ``The Secretary of Transportation may not make grants under 
     this chapter for operating expenses.

     ``Sec. 24405. Local share and maintenance of effort

       ``(a) In General.--Notwithstanding any other provision of 
     law, a recipient of assistance under this title may use, as 
     part of the local matching funds for a capital project, the 
     proceeds from the issuance of revenue bonds.
       ``(b) Maintenance of Effort.--The Secretary of 
     Transportation shall approve the use of proceeds from the 
     issuance of revenue bonds for the non-Federal share of the 
     net project cost only if the aggregate amount of financial 
     support for intercity passenger rail service from the State 
     is not less than the average annual amount provided by the 
     State during the preceding 3 years.

     ``Sec. 24406. Grants for maintenance and modernization

       ``(a) In General.--The Secretary of Transportation may make 
     capital grants for maintenance and modernization of intercity 
     passenger rail services to--
       ``(1) the American Passenger Railway Corporation for 
     services it operates under contract with the Secretary of 
     Transportation; or
       ``(2) to States for intercity passenger rail services 
     operated under a contract with a State or group of States.
       ``(b) Use of Funds.--Grants under this section may be 
     used--
       ``(1) to purchase, lease, rehabilitate, or remanufacture 
     rolling stock and associated facilities used primarily in 
     intercity passenger rail service;
       ``(2) to modernize existing intercity passenger rail 
     service facilities and information systems; or
       ``(3) to defray the cost of rental charges to freight 
     railroads for the addition of train frequencies.
       ``(c) Federal Share.--The Federal share for a capital grant 
     under this section may be 100 percent, except that the 
     Federal share for a grant made under subsection (b)(3) may 
     not exceed 50 percent.
       ``(d) Allocation Formula.--Funds made available by this 
     section shall be allocated equitably among the States based 
     on a formula to be determined by the Secretary.
       ``(e) Sleeping and Dining Cars.--Pending the restructuring 
     of long distance routes under sections 615 through 617 of the 
     Rail Passenger Service Restructuring, Reauthorization, and 
     Development Act, grants may be made to the American Passenger 
     Railway Corporation for sleeping and dining cars only to the 
     extent necessary to maintain the equipment in good working 
     order and not for the purpose of refurbishing, rebuilding, or 
     renewing such equipment to extend the equipment's useful 
     life.
       ``(f) Long Distance Restructuring Plan.--Unless the 
     restructuring plan submitted by the Long Distance Route 
     Restructuring Commission under section 617 of the Rail 
     Passenger Service Restructuring, Reauthorization, and 
     Development Act is disapproved by Congress, from the sums 
     authorized for capital projects outside of the Northeast 
     Corridor, the Secretary may reserve up to $20,000,000 in each 
     of fiscal years 2007 through 2010 to assist in the 
     restructuring of long distance routes as linked corridors, 
     and the Federal share of such assistance shall be 100 
     percent.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of 
     Transportation $200,000,000 for each of fiscal years 2005 
     through 2010 to carry out this section.''.

     SEC. 652. FINAL REGULATIONS ON APPLICATIONS BY STATES FOR 
                   DEVELOPMENT GRANTS.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary of Transportation shall issue final 
     regulations setting forth procedures for application and 
     minimum requirements for the award of grants under chapter 
     244 of title 49, United States Code.

     SEC. 653. AUTHORITY FOR INTERSTATE COMPACTS FOR CORRIDOR 
                   DEVELOPMENT.

       (a) Consent to Compacts.--
       (1) 2 or more States with an interest in a specific form, 
     route, or corridor of intercity passenger rail service 
     (including high speed rail service) may enter into interstate 
     compacts to implement the service, including--
       (A) retaining an existing service or commencing a new 
     service;
       (B) assembling rights-of-way; and
       (C) performing capital improvements, including--
       (i) the construction and rehabilitation of maintenance 
     facilities;
       (ii) the purchase of rolling stock; and
       (iii) operational improvements, including communications, 
     signals, and other systems.
       (2) A compact entered into under the authority of this 
     section shall be submitted to Congress for its consent. It is 
     the sense of Congress that rapid consent to the Compact is a 
     priority for the Congress.
       (b) Financing.--
       (1) An interstate compact established by States under 
     subsection (a) may provide that, in order to carry out the 
     compact, the States may--
       (A) accept contributions from a unit of State or local 
     government or a person;
       (B) use any Federal or State funds made available for 
     intercity passenger rail service (except funds made available 
     for Amtrak);
       (C) on such terms and conditions as the States consider 
     advisable--
       (i) borrow money on a short-term basis and issue notes for 
     the borrowing; and
       (ii) issue bonds; and
       (D) obtain financing by other means permitted under Federal 
     or State law.
       (2) Bonds and other indebtedness incurred under the 
     authority of this subsection shall under no circumstances be 
     backed by the full faith and credit of the United States.

                       Subtitle C--Amtrak Reforms

     SEC. 671. MANAGEMENT OF SECURED DEBT.

       Except as approved by the Secretary of Transportation to 
     refinance existing secured debt, Amtrak (until the American 
     Passenger Railway Corporation is established) and the 
     American Passenger Railway Corporation thereafter, may not 
     enter into any obligation secured by assets of the 
     Corporation after the date of enactment of this Act. This 
     section does not prohibit unsecured lines of credit used for 
     working capital purposes.

     SEC. 672. EMPLOYEE ASSISTANCE.

       (a) Transition Financial Incentives.--
       (1) In general.--To reduce operating expenses in 
     preparation for competition from other rail carriers, the 
     American Passenger Railway Corporation may institute a 
     program under which it may, at its discretion, provide 
     financial incentives to employees who voluntarily terminate 
     their employment with the Corporation and relinquish any 
     legal rights to receive termination-related payments under 
     any contractual agreement with the Corporation.
       (2) Conditions for financial incentives.--As a condition 
     for receiving financial assistance grants under this section, 
     the American Passenger Railway Corporation shall certify to 
     the Secretary of Transportation that--
       (A) the financial assistance results in a net reduction in 
     the total number of employees equal to the number receiving 
     financial incentives;
       (B) the financial assistance results in a net reduction in 
     total employment expenses equivalent to the total employment 
     expenses

[[Page S1066]]

     associated with the employees receiving financial incentives; 
     and
       (C) the total number of employees eligible for termination-
     related payments will not be increased without the express 
     written consent of the Secretary.
       (3) Amount of financial incentives.--The financial 
     incentives authorized under this section may not exceed 1 
     year's base pay.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $25,000,000 for each of fiscal years 2005, 2006, and 2007 to 
     make grants to the American Passenger Railway Corporation to 
     fund financial incentive payments to employees under this 
     subsection.
       (b) Labor Protection for Employees of the American 
     Passenger Railway Corporation.--
       (1) In general.--The American Passenger Railway 
     Corporation, or other operator of intercity passenger rail 
     transportation service, shall be responsible for obligations 
     imposed by law or collective bargaining agreement for 
     compensation and benefits payable to employees terminated in 
     connection with the restructuring of passenger rail service 
     under this title and the amendments made by this title. The 
     responsibility of the Corporation and such other operator 
     under the preceding sentence, and the obligations for which 
     it is responsible under that sentence, may not be transferred 
     to any other entity in connection with such restructuring by 
     contract or otherwise.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation for the 
     use of the American Passenger Railway Corporation in meeting 
     its responsibility under paragraph (1) $75,000,000 for each 
     of fiscal years 2007 through 2010.

     SEC. 673. TERMINATION OF AUTHORITY FOR GSA TO PROVIDE 
                   SERVICES TO AMTRAK.

       Section 1110 of division A of H.R. 5666 (114 Stat. 2763A-
     202), as enacted by section 1(a)(4) of the Consolidated 
     Appropriations Act, 2001, is repealed.

     SEC. 674. AMTRAK REFORM BOARD OF DIRECTORS.

       Section 24302 is amended by adding at the end the 
     following:
       ``(d) Asset Transition Committee.--
       ``(1) In general.--The Reform Board shall form an asset 
     transition committee comprised of the Secretary or the 
     Secretary's designee, and 2 other members, or 1 other member 
     if 2 other members are not lawfully appointed.
       ``(2) Powers and duties.--In addition to other powers and 
     duties assigned by the board, the Asset Transition Committee 
     has the duty to ensure that the public interest is served in 
     board decisions and Amtrak management actions that change the 
     use of or status of--
       ``(A) the contractual right of access of Amtrak to rail 
     lines of other railroads;
       ``(B) Amtrak's secured debt;
       ``(C) Northeast Corridor real property and assets; and
       ``(D) rolling stock.
       ``(3) Approval required.--The board may not take an action 
     with regard to the assets or secured debt specified in 
     paragraph (2), or permit Amtrak management action with regard 
     to those assets, that is not approved by the asset transition 
     committee.''.

     SEC. 675. LIMITATIONS ON AVAILABILITY OF GRANTS.

       (a) In General.--Chapter 243, as amended by section 627 of 
     this Act is amended by inserting after section 24318 the 
     following:

     ``Sec. 24319. Limitations on availability of grants

       ``Grants under this title to the American Passenger Railway 
     Corporation are subject to the following conditions:
       ``(1) The Secretary of Transportation may approve funding 
     to cover operating losses or operating expenses (including 
     advance purchase orders) only after receiving and approving a 
     grant request for each specific train route to which the 
     grant relates.
       ``(2) Each such grant request shall be accompanied by a 
     detailed financial analysis, revenue projection, and capital 
     expenditure program justifying the Federal support to the 
     Secretary's satisfaction.
       ``(3) Not later than December 31st prior to each fiscal 
     year in which grants are made to the American Passenger 
     Railway Corporation, the Corporation shall transmit to the 
     Secretary of Transportation, the Committee on Commerce, 
     Science, and Transportation of the Senate, the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, and the House of Representatives and Senate 
     Committees on Appropriations a business plan for operating 
     and capital improvements to be funded in the fiscal year 
     under section 24104(a) of this title.
       ``(4) The business plan shall include--
       ``(A) targets, as applicable, for ridership, revenues, and 
     capital and operating expenses;
       ``(B) a separate accounting for such targets--
       ``(i) on the Northeast Corridor;
       ``(ii) each intercity train route;
       ``(iii) as a group for long distance trains and corridor 
     services; and
       ``(iv) commercial activities, including contract operations 
     and mail and express; and
       ``(C) a description of the work to be funded, along with 
     cost estimates and an estimated timetable for completion of 
     the projects covered by the business plan.
       ``(5) Each month of each fiscal year in which grants are 
     made to the American Passenger Railway Corporation, the 
     Corporation shall submit to the Secretary of Transportation, 
     the Committee on Commerce, Science, and Transportation of the 
     Senate, the Committee on Transportation and Infrastructure of 
     the House of Representatives, and the House of 
     Representatives and Senate Committees on Appropriations a 
     supplemental report in electronic format regarding the 
     business plan, which shall describe the work completed to 
     date, any changes to the business plan, and the reasons for 
     such changes.
       ``(6) None of the funds authorized by this subtitle or the 
     Rail Passenger Service Restructuring, Reauthorization, and 
     Development Act may be disbursed to the American Passenger 
     Railway Corporation for operating expenses, including 
     advance purchase orders and capital projects not approved 
     by the Secretary nor in the American Passenger Railway 
     Corporation's business plan.
       ``(7) The American Passenger Railway Corporation shall 
     display the business plan and all subsequent supplemental 
     plans on its website within a reasonable time after they are 
     submitted to the Secretary and the Congress under this 
     section.
       ``(8) The Secretary may not make any grant to the American 
     Passenger Railway Corporation until Amtrak agrees to continue 
     abiding by the provisions of paragraphs (1), (2), (5), (9), 
     and (11) of the summary of conditions on the direct loan 
     agreement of June 28, 2002, until the loan is repaid.
       ``(9) No grant authorized by this title shall be made to 
     the American Passenger Railway Corporation unless, within 6 
     months after the date of enactment of the Rail Passenger 
     Service Restructuring, Reauthorization, and Development Act, 
     the Corporation prepares a capital spending plan that 
     addresses capital needs, consistent with the funding levels 
     authorized to bring the Northeast Corridor capital assets to 
     a state of good repair, as defined by the Secretary, and 
     transmits that plan to the Secretary.
       ``(10) With respect to any route on which intercity 
     passenger rail service is provided on the day before the date 
     on which the restructuring required by sections 24300, 
     24300A, and 24300B is completed (as determined by the 
     Secretary), the American Passenger Railway Corporation shall 
     make available to any replacement operator the legacy 
     equipment that is associated with the service on the route.
       (11) The American Passenger Railway Corporation shall 
     provide interline reservations services to any other provider 
     of intercity passenger rail transportation on the same basis 
     and at the same rates as those services are provided to the 
     operating entities that provide passenger rail service within 
     Amtrak as of the date of enactment of the Rail Passenger 
     Service Restructuring, Reauthorization, and Development 
     Act''.
       (b) Interim Application of Section 24319.--Until the 
     restructuring required by sections 24300, 24300A, and 24300B 
     of title 49, United States Code, is completed (as determined 
     by the Secretary of Transportation), section 24319 of title 
     49, United States Code, as added by subsection (a), shall be 
     applied by substituting ``Amtrak'' for ``American Passenger 
     Railway Corporation'' or ``the Corporation'' each place it 
     appears.
       (c) Conforming Amendment.--The chapter analysis for chapter 
     243 is amended by inserting after the item relating to 
     section 24318 the following:

``24319. Limitations on availability of grants''.

     SEC. 676. REPEAL OF OBSOLETE AND EXECUTED PROVISIONS OF LAW.

       (a) In General.--The following sections are repealed:
       (1) Section 24701.
       (2) Section 24706.
       (3) Section 24901.
       (4) Section 24902.
       (5) Section 24904.
       (6) Section 24906.
       (7) Section 24909.
       (b) Amendment of Section 24305.--Section 24305 is amended--
       (1) by striking paragraph (2) of subsection (a) and 
     redesignating paragraph (3) as paragraph (2); and
       (2) by inserting ``With regard to items acquired with funds 
     provided by the Federal Government,'' before ``Amtrak'' in 
     subsection (f)(2).
       (c) Conforming Amendments.--The chapter analyses for 
     chapters 243, 247, and 249 are amended, as appropriate, by 
     striking the items relating to sections 24307, 24701, 24706, 
     24901, 24902, 24904, 24906, 24908, and 24909.

     SEC. 677. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR 
                   THE AMERICAN PASSENGER RAILWAY CORPORATION BY 
                   INDEPENDENT AUDITOR.

       (a) In General.--The Inspector General of the Department of 
     Transportation shall employ an independent financial 
     consultant--
       (1) to assess Amtrak's financial accounting and reporting 
     system and practices as of the date of enactment of this Act,
       (2) to design and assist the American Passenger Railway 
     Corporation in implementing a modern financial accounting and 
     reporting system, on the basis of the assessment, that will 
     produce accurate and timely financial information in 
     sufficient detail--
       (A) to enable the American Passenger Railway Corporation to 
     assign revenues and expenses appropriately to each of its 
     lines of business and to each major activity within each 
     line of business activity, including train operations, 
     equipment maintenance, ticketing, and reservations;
       (B) to aggregate expenses and revenues related to 
     infrastructure and distinguish them from expenses and 
     revenues related to rail operations; and

[[Page S1067]]

       (C) to provide ticketing and reservation information on a 
     real-time basis.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.
       (C) Separate Financial Statements for Northeast Corridor 
     Infrastructure.--Beginning with fiscal year 2006, the 
     American Passenger Railway Corporation shall issue separate 
     financial statements for activities related to the 
     infrastructure of the Northeast Corridor.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $2,500,000 for fiscal year 2005 to carry out subsection (a), 
     such sums to remain available until expended.

     SEC. 678. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

       (a) In General.--The Secretary of the Treasury, in 
     consultation with the Secretary of Transportation and Amtrak, 
     shall restructure Amtrak's indebtedness as of the date of 
     enactment of this Act.
       (b) Debt Redemption.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall enter 
     into negotiations with the holders of Amtrak debt, including 
     leases, that is outstanding on the date of enactment of this 
     Act for the purpose of redeeming or restructuring that debt. 
     The Secretary, in consultation with the Secretary of the 
     Treasury, shall secure agreements for repayment on such terms 
     as the Secretary deems favorable to the interests of the 
     Government. Payments for such redemption may be made after 
     October 1, 2005, in either a single payment or a series of 
     payments, but in no case shall the repayment period extend 
     beyond September 30, 2009.
       (c) Criteria.--In redeeming or restructuring Amtrak's 
     indebtedness, the Secretaries and Amtrak--
       (1) shall ensure that the restructuring imposes the least 
     practicable burden on taxpayers; and
       (2) take into consideration repayment costs, the term of 
     any loan or loans, and market conditions.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary for fiscal years 2005 through 2009 to restructure 
     or redeem Amtrak's secured debt.
       (e) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak 
     (before the date, determined by the Secretary of 
     Transportation, on which the restructuring required by 
     sections 24300, 24300A, and 24300B of title 49, United States 
     Code, is completed) and the American Passenger Railway 
     Corporation (after that date) for retirement of principal on 
     loans for capital equipment, or capital leases, not more than 
     the following amounts:
       (A) For fiscal year 2005, $110,000,000.
       (B) For fiscal year 2006, $115,000,000.
       (C) For fiscal year 2007, $205,000,000.
       (D) For fiscal year 2008, $165,000,000.
       (E) For fiscal year 2009, $155,000,000.
       (F) For fiscal year 2010, $150,000,000.
       (2) Interest on debt.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak 
     (before the date, determined by the Secretary of 
     Transportation, on which the restructuring required by 
     sections 24300, 24300A, and 24300B of title 49, United States 
     Code, is completed) and the American Passenger Railway 
     Corporation (after that date) for the payment of interest on 
     loans for capital equipment, or capital leases, the following 
     amounts:
       (A) For fiscal year 2005, $155,000,000.
       (B) For fiscal year 2006, $150,000,000.
       (C) For fiscal year 2007, $140,000,000.
       (D) For fiscal year 2008, $130,000,000.
       (E) For fiscal year 2009, $125,000,000.
       (F) For fiscal year 2010, $115,000,000.
       (3) Reductions in Authorization Levels.--Whenever action 
     taken by the Secretary of the Treasury under subsection (c) 
     results in reductions in amounts of principle and interest 
     that Amtrak must service on existing debt, Amtrak shall 
     submit to the Senate Committee on Commerce, Science and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, the Senate Committee on 
     Appropriations, and House of Representatives Committee on 
     Appropriations revised requests for amounts authorized by 
     paragraphs (1) and (2) that reflect the such reductions.
       (g) Legal Effect of Payments Under This Section.--The 
     payment of principal and interest secured debt with the 
     proceeds of grants under subsection (f) shall not--
       (1) modify the extent or nature of any indebtedness of the 
     National Railroad Passenger Corporation to the United States 
     in existence of the date of enactment of this Act;
       (2) change the private nature of Amtrak's or its 
     successors' liabilities; or
       (3) imply any Federal guarantee or commitment to amortize 
     Amtrak's outstanding indebtedness.

     SEC. 679. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Transportation for the benefit of Amtrak for fiscal year 2005 
     $750,000,000 for operating expenses.
                                 ______
                                 
  SA 2325. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 476, line 18, strike the period and the closing 
     quotation marks and insert the following:

     ``Sec. 512. Transportation Analysis Simulation System

       ``(a) Continuation of TRANSIMS Development.--
       ``(1) The Secretary shall continue the development and 
     deployment of the advanced transportation model known as the 
     `Transportation Analysis Simulation System' (referred to in 
     this section as `TRANSIMS' '' developed by the Los Alamos 
     National Laboratory.
       ``(2) Requirements and considerations.--In carrying out 
     paragraph (1), the Secretary shall--
       ``(A) further improve TRANSIMS to reduce the cost and 
     complexity of using the model;
       ``(B) continue development of TRANSIMS for applications to 
     transportation planning, regulatory compliance, and response 
     to natural disasters and other transportation disruptions; 
     and
       ``(C) assist State departments of transportation and 
     metropolitan planning organizations, especially smaller 
     metropolitan planning organizations, in the implementation of 
     TRANSIMS by providing training and technical assistance;
       ``(b) Eligible Activities.--The Secretary shall use funds 
     made available to carry out this section to--
       ``(1) further develop TRANSIMS for additional applications, 
     including congestion analyses, major investment studies, 
     economic impact analyses, alternative analyses, freight 
     movement studies, emergency evacuation studies, port studies, 
     and airport access studies;
       ``(2) provide training and technical assistance with 
     respect to the implementation and application of TRANSIMS to 
     States, local governments, and metropolitan planning 
     organizations with responsibility for travel modeling;
       ``(3) develop methods to simulate the national 
     transportation infrastructure as a single, integrated system 
     of the movement of people and goods; and
       ``(4) provide funding to state transportation departments 
     and metropolitan planning organizations for implementation of 
     TRANSIMS.
       ``(c) Allocation of Funds.--Of the funds made available to 
     carry out this section for each fiscal year, not less than 15 
     percent of the funds shall be allocated to activities in 
     subsection (b)(3).
       ``(d) Funding.--Of the amounts made available under section 
     2001(a) of the Safe, Accountable, Flexible and Efficient 
     Transportation Act of 2003 for each of fiscal years 2004 
     through 2009, the Secretary shall use $6,000,000 to carry out 
     this section.
       ``(e) Availability of Funds.--Funds made available under 
     this section shall be available to the Secretary through the 
     Transportation Planning, Research, and Development Account of 
     the Office of the Secretary of Transportation.''.
                                 ______
                                 
  SA 2326. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES 
                   WITH INDIAN RESERVATIONS.

       Section 1214(d) of the Transportation Equity Act for the 
     21st Century (23 U.S.C. 202 note; 112 Stat. 206) is amended--
       (1) in paragraph (1), by inserting ``(except Arizona)'' 
     after ``each State''; and
       (2) in paragraph (5)(A), by striking ``$1,500,000 for each 
     of fiscal years 1998 through 2003'' and inserting 
     ``$1,800,000 for each of fiscal years 2004 through 2009''.
                                 ______
                                 
  SA 2327. Mr. BOND proposed an amendment to amendment SA 2311 proposed 
by Mrs. Clinton (for herself, Mr. Bingaman, Mr. Byrd, Mr. Dodd, Mr. 
Sarbanes, Mr. Corzine, Mr. Lieberman, Mr. Rockefeller, Mr. Harkin, and 
Ms. Stabenow) to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       In lieu of the language proposed to be inserted, insert the 
     following:

[[Page S1068]]

     SEC. 1409. RENTED OR LEASED MOTOR VEHICLES.

       (a) In General.--Subchapter I of chapter 301 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 30106. Rented or leased motor vehicle safety and 
       responsibility

       ``(a) In General.--Provided that there is no negligence or 
     criminal wrongdoing on the part of the owner of a motor 
     vehicle, no such owner engaged in the trade or business of 
     renting or leasing motor vehicles may be held liable under 
     State law for harm caused by a person to himself or herself, 
     another person, or to property, which results or arises from 
     that person's use, operation, or possession of a rented or 
     leased motor vehicle, by reason of being the owner of such 
     motor vehicle.
       ``(b) Construction.--Subsection (a) shall not apply if such 
     owner does not maintain the required limits of financial 
     responsibility for such vehicle, as required by State law in 
     the State in which the vehicle is registered.
       ``(c) Applicability and Effective Date.--Notwithstanding 
     any other provision of law, this section shall apply with 
     respect to any action commenced on or after the date of 
     enactment of this section without regard to whether the harm 
     that is the subject of the action or the conduct that caused 
     the harm occurred before such date of enactment.
       ``(d) Definitions.--In this section:
       ``(1) Motor vehicle.--The term `motor vehicle' shall have 
     the meaning given the term under section 13102(14) of this 
     title.
       ``(2) Owner.--The term `owner' means a person who is--
       ``(A) a record or beneficial owner, lessor, or lessee of a 
     motor vehicle;
       ``(B) entitled to the use and possession of a motor vehicle 
     subject to a security interest in another person; or
       ``(C) a lessor, lessee, or bailee of a motor vehicle, in 
     the trade or business of renting or leasing motor vehicles, 
     having the use or possession of such motor vehicle, under a 
     lease, bailment, or otherwise.
       ``(3) Person.--The term `person' means any individual, 
     corporation, company, limited liability company, trust, 
     association, firm, partnership, society, joint stock company, 
     or any other entity.
       ``(4) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, the Northern 
     Mariana Islands, any other territory or possession of the 
     United States, or any political subdivision of any such 
     State, commonwealth, territory, or possession.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 301 of title 49, United States Code, is 
     amended by inserting after the item relating to section 30105 
     the following:

``30106. Rented or leased motor vehicle safety and responsibility.''.
                                 ______
                                 
  SA 2328. Mr. DeWINE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 792, between lines 15 and 16, insert the following:

                    Part 3--Miscellaneous Provisions

     SEC. 4171. DRIVER LICENSING AND EDUCATION.

       (a) National Office of Driver Licensing and Education.--
     Section 105 of title 49, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f)(1) There is a National Office of Driver Licensing and 
     Education in the National Highway Traffic Safety 
     Administration.
       ``(2) The head of the National Office of Driver Licensing 
     and Education is the Director.
       ``(3) The functions of the National Office of Driver 
     Licensing and Education are as follows:
       ``(A) To provide States with services for coordinating the 
     motor vehicle driver training and licensing programs of the 
     States.
       ``(B) To develop and make available to the States a 
     recommended comprehensive model for motor vehicle driver 
     education and graduated licensing that incorporates the best 
     practices in driver education and graduated licensing, 
     including best practices with respect to--
       ``(i) vehicle handling and crash avoidance;
       ``(ii) driver behavior and risk reduction;
       ``(iii) roadway features and associated safety 
     implications;
       ``(iv) roadway interactions involving all types of vehicles 
     and road users, such as car-truck and pedestrian-car 
     interactions;
       ``(v) parent education; and
       ``(vi) other issues identified by the Director.
       ``(C) To carry out such research (pursuant to cooperative 
     agreements or otherwise) and undertake such other activities 
     as the Director determines appropriate to develop and, on an 
     ongoing basis, improve the recommended comprehensive model.
       ``(D) To provide States with technical assistance for the 
     implementation and deployment of the motor vehicle driver 
     education and licensing comprehensive model recommended under 
     subparagraph (B).
       ``(E) To develop and recommend to the States methods for 
     harmonizing the presentation of motor vehicle driver 
     education and licensing with the requirements of multistage 
     graduated licensing systems, including systems described in 
     section 410(c)(4) of title 23, and to demonstrate and 
     evaluate the effectiveness of those methods in selected 
     States.
       ``(F) To assist States with the development and 
     implementation of programs to certify driver education 
     instructors, including the development and implementation of 
     proposed uniform certification standards.
       ``(G) To provide States with financial assistance under 
     section 412 of title 23 for--
       ``(i) the implementation of the motor vehicle driver 
     education and licensing comprehensive model recommended under 
     subparagraph (B);
       ``(ii) the establishment or improved administration of 
     multistage graduated licensing systems; and
       ``(iii) the support of other improvements in motor vehicle 
     driver education and licensing programs.
       ``(H) To evaluate the effectiveness of the comprehensive 
     model recommended under subparagraph (B).
       ``(I) To examine different options for delivering driver 
     education in the States.
       ``(J) To perform such other functions relating to motor 
     vehicle driver education or licensing as the Secretary may 
     require.
       ``(4) Not later than 42 months after the date of the 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004, the Director shall submit 
     to Congress a report on the progress made by the National 
     Office of Driver Licensing and Education with respect to the 
     functions under paragraph (3).''.
       (b) Grant Program for Improvement of Driver Education and 
     Licensing.--
       (1) Authority.--
       (A) In general.--Chapter 4 of title 23, United States Code, 
     is amended by adding at the end the following new section:

     ``SEC. 412. DRIVER EDUCATION AND LICENSING.

       ``(a) Authority.--
       ``(1) In general.--The Secretary shall carry out a program 
     to provide States, by grant, with financial assistance to 
     support the improvement of motor vehicle driver education 
     programs and the establishment and improved administration of 
     graduated licensing systems, including systems described in 
     section 410(c)(4) of this title.
       ``(2) Administrative office.--The Secretary shall 
     administer the program under this section through the 
     Director of the National Office of Driver Licensing and 
     Education.
       ``(b) Eligibility Requirements.--
       ``(1) Regulations.--The Secretary shall prescribe in 
     regulations the eligibility requirements, application and 
     approval procedures and standards, and authorized uses of 
     grant proceeds for the grant program under this section. The 
     regulations shall, at a minimum, authorize use of grant 
     proceeds for the following activities:
       ``(A) Quality assurance testing, including follow-up 
     testing to monitor the effectiveness of--
       ``(i) driver licensing and education programs;
       ``(ii) instructor certification testing; and
       ``(iii) other statistical research designed to evaluate the 
     performance of driver education and licensing programs.
       ``(B) Improvement of motor vehicle driver education 
     curricula.
       ``(C) Training of instructors for motor vehicle driver 
     education programs.
       ``(D) Testing and evaluation of motor vehicle driver 
     performance.
       ``(E) Public education and outreach regarding motor vehicle 
     driver education and licensing.
       ``(F) Improvements with respect to State graduated 
     licensing programs, as well as related enforcement 
     activities.
       ``(2) Consultation requirement.--In prescribing the 
     regulations, the Secretary shall consult with the following:
       ``(A) The Administrator of the National Highway Traffic 
     Safety Administration.
       ``(B) The heads of such other departments and agencies of 
     the United States as the Secretary considers appropriate on 
     the basis of relevant interests or expertise.
       ``(C) Appropriate officials of the governments of States 
     and political subdivisions of States.
       ``(D) Other relevant experts.
       ``(c) Maximum Amount of Grant.--The maximum amount of a 
     grant of financial assistance for a program, project, or 
     activity under this section may not exceed 75 percent of the 
     total cost of such program, project, or activity.''.
       (B) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``412. Driver education and licensing.''.

       (2) Time for promulgation of regulations.--The Secretary of 
     Transportation shall promulgate the regulations under section 
     412(b) of title 23, United States Code (as added by paragraph 
     (1)), not later than October 1, 2005.
       (3) Authorization of appropriations.--Of the amounts 
     available to carry out section 403 of title 23, United States 
     Code, for each of the fiscal years 2005 through 2010, 
     $5,000,000 may be made available for each such fiscal year to 
     carry out section 412 of title 23, United States Code (as 
     added by paragraph (1)).

[[Page S1069]]

       (c) Grant Program for Public Awareness of Organ Donation 
     Through Driver Licensing Programs.--
       (1) Authority.--
       (A) In general.--Chapter 4 of title 23, United States Code 
     (as amended by subsection (b)), is further amended by adding 
     at the end the following new section:

     ``SEC. 413. ORGAN DONATION THROUGH DRIVER LICENSING.

       ``(a) Authority.--
       ``(1) In general.--The Secretary shall carry out a program 
     to provide eligible recipients, by grant, with financial 
     assistance to carry out campaigns to increase public 
     awareness of, and training on, authority and procedures under 
     State law to provide for the donation of organs through a 
     declaration recorded on a motor vehicle driver license.
       ``(2) Administrative office.--The Secretary shall 
     administer the program under this section through the 
     Director of the National Office of Driver Licensing and 
     Education.
       ``(b) Eligibility Requirements.--
       ``(1) Regulations.--The Secretary shall prescribe in 
     regulations the eligibility requirements, application and 
     approval procedures and standards, and authorized uses of 
     grant proceeds for the grant program under this section.
       ``(2) Consultation requirement.--In prescribing the 
     regulations, the Secretary shall consult with the following:
       ``(A) The Administrator of the National Highway Traffic 
     Safety Administration.
       ``(B) The heads of such other departments and agencies of 
     the United States as the Secretary considers appropriate on 
     the basis of relevant interests or expertise.
       ``(C) Appropriate officials of the governments of States 
     and political subdivisions of States.
       ``(D) Representatives of private sector organizations 
     recognized for relevant expertise.''.
       (B) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``413. Organ donation through driver licensing.''.

       (2) Time for promulgation of regulations.--The Secretary of 
     Transportation shall promulgate the regulations under section 
     413(b) of title 23, United States Code (as added by paragraph 
     (1)), not later than October 1, 2005.
       (3) Authorization of expenditures.--Of the amounts 
     available under Section 412(c)(3), as amended, no more than 
     $1,000,000 may be utilized for this program annually.
       (d) Study of National Driver Education Standards.--
       (1) Requirement for study.--The Secretary of Transportation 
     shall carry out a study to determine whether the 
     establishment and imposition of nationwide minimum standards 
     of motor vehicle driver education would improve national 
     highway traffic safety or the performance and legal 
     compliance of novice drivers.
       (2) Time for completion of study.--The Secretary shall 
     complete the study not later than 2 years after the date of 
     the enactment of this Act.
       (3) Report.--The Secretary shall publish a report on the 
     results of the study under this section not later than 2 
     years after the study is completed.

     SEC. 4172. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE 
                   ACT.

       (a) Safety Labeling Requirement.--Section 3 of the 
     Automobile Information Disclosure Act (15 U.S.C. 1232) is 
     amended by adding at the end the following:
       ``(g) if one or more safety ratings for such automobile 
     have been assigned and formally published or released by the 
     National Highway Traffic Safety Administration under the New 
     Car Assessment Program, information about safety ratings 
     that--
       ``(1) includes a graphic depiction of the number of stars 
     that corresponds to each such assigned safety rating 
     displayed in a clearly differentiated fashion from stars 
     indicating the unattained safety rating;
       ``(2) refers to frontal impact crash tests, side impact 
     crash tests, and rollover resistance tests (whether or not 
     such automobile has been assigned a safety rating for such 
     tests), including statements that--
       ``(A) frontal impact crash test ratings are based on risk 
     of head and chest injury;
       ``(B) side impact crash test ratings are based on risk of 
     chest injury; and
       ``(C) rollover resistance ratings are based on risk of 
     rollover in the event of a single automobile crash;
       ``(3) is presented in a legible, visible, and prominent 
     fashion and covers at least--
       ``(A) 8 percent of the total area of the label; or
       ``(B) an area with a minimum length of 4 \1/2\ inches and a 
     minimum height of 3 \1/2\ inches; and
       ``(4) contains a heading titled `Government Safety 
     Information' and a disclaimer including the following text: 
     `Star ratings for frontal impact crash tests can only be 
     compared to other vehicles in the same weight class and those 
     plus or minus 250 pounds. Side impact and rollover ratings 
     can be compared across all vehicle weights and classes. For 
     more information on safety and testing, please visit http://
www.nhtsa.dot.gov'; and
       ``(h) if an automobile has not been tested by the National 
     Highway Traffic Safety Administration under the New Car 
     Assessment Program, or safety ratings for such automobile 
     have not been assigned in one or more rating categories, a 
     statement to that effect.''.
       (b) Regulations.--Not later than January 1, 2005, the 
     Secretary of Transportation shall prescribe regulations to 
     implement the labeling requirements added pursuant to 
     subsection (a).
       (c) Conforming and Technical Amendments.--Section 3 of such 
     Act is further amended--
       (1) in subsection (e), by striking ``and'' after the 
     semicolon; and
       (2) in subsection (f)--
       (A) by adding ``and'' at the end of paragraph (3); and
       (B) by striking the period at the end and inserting a 
     semicolon.
       (d) Effective Date.--The amendments made by subsection (a) 
     and subsection (c) shall take effect on a production year 
     basis not earlier than one year after the regulations are 
     prescribed, and no later than Sept. 1, 2006.

     SEC. 4173. CHILD SAFETY.

       (a) Incorporation of Child Dummies in Safety Tests.--
       (1) Rulemaking required.--Not later than 2 years after the 
     date of the enactment of this Act, the Administrator of the 
     National Highway Traffic Safety Administration shall conduct 
     a rulemaking to increase utilization of child dummies, 
     including Hybrid-III child dummies, in motor vehicle safety 
     tests, including crash tests, conducted by the 
     Administration.
       (2) Criteria.--In conducting the rulemaking under 
     subsection (a), the Administrator shall select motor vehicle 
     safety tests in which the inclusion of child dummies will 
     lead to--
       (A) increased understanding of crash dynamics with respect 
     to children; and
       (B) measurably improved child safety.
       (3) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Transportation shall 
     publish a report regarding the implementation of this 
     section.
       (b) Child Safety in Rollover Crashes.--
       (1) Consumer information program.--Not later than 2 years 
     after the date of the enactment of this Act, the Secretary of 
     Transportation shall implement a consumer information program 
     relating to child safety in rollover crashes. The Secretary 
     shall make information related to the program available to 
     the public following completion of the program.
       (2) Child dummy development.--
       (A) In general.--The Administrator of the National Highway 
     Traffic Safety Administration shall initiate the development 
     of a biofidelic child crash test dummy capable of measuring 
     injury forces in a simulated rollover crash.
       (B) Reports.--The Secretary shall submit to Congress a 
     report on progress related to such development--
       (i) not later than 1 year after the date of the enactment 
     of this Act; and
       (ii) not later than 3 years after the date of the enactment 
     of this Act.
       (c) Report on Enhanced Vehicle Safety Technologies.--Not 
     later than 2 years after the date of the enactment of this 
     Act, the Secretary of Transportation shall submit to Congress 
     a report that describes, evaluates, and determines the 
     relative effectiveness of--
       (1) currently available and emerging technologies, 
     including auto-reverse functions and child-safe window 
     switches, that are designed to prevent and reduce the number 
     of injuries and deaths to children left unattended inside 
     parked motor vehicles, including injuries and deaths that 
     result from hyperthermia or are related to power windows or 
     power sunroofs; and
       (2) currently available and emerging technologies that are 
     designed to improve the performance of safety belts with 
     respect to the safety of occupants aged between 4 and 8 years 
     old.
       (d) Completion of Rulemaking Regarding Power Windows.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Secretary of Transportation shall--
       (1) complete the rulemaking initiated by the National 
     Highway Traffic Safety Administration that is ongoing on the 
     date of the enactment of this Act and relates to a 
     requirement that window switches be designed to reduce the 
     accidental closing by children of power windows; and
       (2) issue performance-based regulations to take effect not 
     later than September 1, 2006, requiring that window switches 
     or related technologies be designed to prevent the accidental 
     closing by children of power windows.
       (e) Database on Injuries and Deaths in Nontraffic, Noncrash 
     Events.--
       (1) In general.--The Secretary of Transportation shall 
     establish a new database of, and collect data regarding, 
     injuries and deaths in nontraffic, noncrash events involving 
     motor vehicles. The database shall include information 
     regarding--
       (A) the number, types, and proximate causes of injuries and 
     deaths resulting from such events;
       (B) the characteristics of motor vehicles involved in such 
     events;
       (C) the characteristics of the motor vehicle operators and 
     victims involved in such events; and
       (D) the presence or absence in motor vehicles involved in 
     such events of advanced technologies designed to prevent such 
     injuries and deaths.
       (2) Rulemaking.--The Secretary shall conduct a rulemaking 
     regarding how to structure and compile the database.

[[Page S1070]]

       (3) Availability.--The Secretary shall make the database 
     available to the public.

     SEC. 4174. SAFE INTERSECTIONS.

       (a) In General.--Chapter 2 of title 18, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 39. Traffic signal preemption transmitters

       ``(a) Offenses.--
       ``(1) Sale.--A person who provides for sale to unauthorized 
     users a traffic signal preemption transmitter in or affecting 
     interstate or foreign commerce shall be fined not more than 
     $10,000, imprisoned not more than 1 year, or both.
       ``(2) Possession.--A person who is an unauthorized user in 
     possession of a traffic signal preemption transmitter in or 
     affecting interstate or foreign commerce shall be fined not 
     more than $10,000, imprisoned not more than 6 months, or 
     both.
       ``(b) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Traffic signal preemption transmitter.--The term 
     `traffic signal preemption transmitter' means any device or 
     mechanism that can change a traffic signal's phase.
       ``(2) Unauthorized user.--The term `unauthorized user' 
     means a user of a traffic signal preemption transmitter who 
     is not a government approved user.''.
       (b) Chapter Analysis.--The chapter analysis for chapter 2 
     of title 18, United States Code, is amended by adding at the 
     end the following:

``39. Traffic signal preemption transmitters.''.

     SEC. 4175. STUDY ON INCREASED SPEED LIMITS.

       (a) Study.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall conduct a study to 
     examine the effects of increased speed limits enacted by 
     States after 1995.
       (2) Requirements.--The study shall collect empirical data 
     regarding--
       (A) increases or decreases in driving speeds on Interstate 
     highways since 1995;
       (B) correlations between changes in driving speeds and 
     accident, injury, and fatality rates;
       (C) correlations between posted speed limits and observed 
     driving speeds;
       (D) the overall impact on motor vehicle safety resulting 
     from the repeal of the national maximum speed limit in 1995; 
     and
       (E) such other matters as the Secretary determines to be 
     appropriate.
       (b) Report.--Not later than 1 year after the date of 
     completion of the study under subsection (a), the Secretary 
     shall submit to Congress a report that describes the results 
     of the study.
                                 ______
                                 
  SA 2329. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 338, after line 13, insert the following:
       ``(iii) $50,000,000 to the State of California to be used 
     for the seismic retrofit and homeland security protection of 
     the Golden Gate Bridge, San Francisco, California.
                                 ______
                                 
  SA 2330. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                 TITLE VII--BORDER SECURITY PROVISIONS

     SEC. 7101. SECURE AND FAST ENTRY AT THE BORDER.

       (a) Short Title.--This section may be cited as the ``Secure 
     and Fast Entry at the Border Act of 2004'' or the ``SAFE 
     Border Act of 2004'' .
       (b) Portpass Program.--
       (1) Findings.--Congress finds the following:
       (A) Port Passenger Accelerated Service System (PortPASS) is 
     a group of pre-inspection technology programs used at ports 
     of entry to facilitate the speedy passage of low-risk 
     travelers.
       (B) Ports of entry constitute vital links in our Nation's 
     economic and social life.
       (C) Southern and northern land border inspections combined 
     comprise over 80 percent of the total number of inspections 
     performed at all ports of entry.
       (D) PortPASS programs strengthen our borders without 
     impeding legitimate traffic needed for our Nation's economic 
     health.
       (E) Secure Electronic Network for Travelers Rapid 
     Inspection (SENTRI), a PortPASS program, incorporates an 
     extensive screening process to move pre-screened, low-risk 
     travelers quickly and safely through the inspection process 
     while preserving border security. There are currently over 
     45,000 SENTRI participants.
       (F) PortPASS programs must expand their existing 
     infrastructure to meet border management issues. The success 
     and effectiveness of the programs demonstrate they are 
     deserving of increased resource allocation to meet growth and 
     security challenges.
       (2) Amendment to immigration and nationality act.--Section 
     286(q)(1)(A) of the Immigration and Nationality Act (8 U.S.C. 
     1356(q)(1)(A)) is amended adding at the end the following:
       ``(iv) The Port Passenger Accelerated Service System 
     (PortPASS) is authorized as a permanent land border 
     inspection project under this subparagraph.''.
       (3) Sentri participation approvals.--
       (A) Extension of validity of sentri approvals for 
     participation.--Notwithstanding any other provision of law, 
     and beginning not later than 30 days after the date of 
     enactment of this Act, approval shall be issued for 
     participation in the Secure Electronic Network for Travelers 
     Rapid Inspection (SENTRI), carried out by the Bureau of 
     Citizenship and Immigration Services within the Department of 
     Homeland Security, for non-commercial vehicle border 
     crossers. Such approval shall be valid for not less than 2 
     years.
       (B) Preclusion of certain persons.--Any person convicted of 
     a felony or under active criminal investigation shall be 
     prohibited from participating in the Secure Electronic 
     Network for Travelers Rapid Inspection (SENTRI) program.
       (4) Sense of congress.--It is the sense of the Congress 
     that--
       (A) the Department of Homeland Security must ensure the 
     permanence of the Port Passenger Accelerated Service System 
     (PortPASS) in the transition of PortPASS from the Department 
     of Justice to the Department of Homeland Security;
       (B) all land PortPASS programs should utilize interoperable 
     technology to offer program enrollees increased access at all 
     participating dedicated commuter lanes;
       (C) the Secretary of Homeland Security should--
       (i) appoint dedicated staff with appropriate training and 
     instruction to the Secure Electronic Network for Travelers 
     Rapid Inspection (SENTRI) program;
       (ii) increase staffing under the SENTRI program for actual 
     inspections and necessary administrative tasks; and
       (iii) allocate greater resources to the program to 
     facilitate and expedite the processing of applications for 
     SENTRI; and
       (D) the Secretary of Homeland Security should create a pre-
     inspection low-risk traveler dedicated commuter lane for 
     pedestrian land border crossers.
                                 ______
                                 
  SA 2331. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Beginning on page 460, strike line 18 and all that follows 
     through page 462, line 24, and insert the following:
       ``(2) Identification of centers.--The university 
     transportation centers established under this section shall--
       ``(A) comply with applicable requirements under subsection 
     (c); and
       ``(B) be located at the institutions of higher learning 
     specified in paragraph (3).
       ``(3) Identification of groups.--For the purpose of making 
     grants under this subsection, the following grants are 
     identified:
       ``(A) Group a.--Group A shall consist of the 10 regional 
     centers selected under subsection (b).
       ``(B) Group b.--Group B shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________]
       ``(ix) [_________].
       ``(x) [_________].
       ``(xi) [_________].
       ``(C) Group c.--Group C shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________].
       ``(ix) [_________].
       ``(x) [_________].
       ``(xi) [_________].
       ``(D) Group d.--Group D shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________].
                                 ______
                                 
  SA 2332. Mr. HARKIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 145, strike lines 13 through 23 and insert the 
     following:
       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations--

[[Page S1071]]

       (1) to decrease the probability of worker injury;
       (2) to maintain the free flow of vehicular traffic by 
     requiring workers whose duties place the workers on, or in 
     close proximity to, a Federal-aid highway (as defined in 
     section 101 of title 23, United States Code) to wear high-
     visibility clothing; and
       (3) to require such other worker-safety measures for 
     workers described in paragraph (2) as the Secretary 
     determines appropriate.
       (b) Vegetation Control.--To lower operating expenses and 
     improve safety during road construction, rehabilitation, and 
     maintenance, the Secretary shall strongly encourage State 
     departments of transportation and local transportation 
     authorities to use devices that have been approved by the 
     Federal Highway Administration to control vegetation near 
     structures in the rights-of-way of highways.
                                 ______
                                 
  SA 2333. Mr. HARKIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. PRIORITY FOR PEDESTRIAN AND BICYCLE FACILITY 
                   ENHANCEMENT PROJECTS.

       Section 133(e)(5) of title 23, United States Code, is 
     amended by adding at the end the following:
       ``(D) Priority for pedestrian and bicycle facility 
     enhancement projects.--The Secretary shall encourage States 
     to give priority to pedestrian and bicycle facility 
     enhancement projects that include a coordinated physical 
     activity or healthy lifestyles program.''.
                                 ______
                                 
  SA 2334. Mrs. CLINTON submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 893, between lines 23 and 24, insert the following:
       ``(C) Responsibility of states.--
       ``(i) In general.--Each State shall be responsible for 
     ensuring that subrecipients of Federal funds with the State 
     under this section have emission reduction strategies for 
     fleets of vehicles that are--

       ``(I) used in construction projects located in 
     nonattainment and maintenance areas; and
       ``(II) funded under this title.

       ``(ii) Requirements for strategies.--The emission reduction 
     strategies referred to in clause (i) shall be consistent with 
     guidance developed by the Administrator of the Environmental 
     Protection Agency, in consultation with the Secretary, 
     including guidance on--

       ``(I) contract preferences;
       ``(II) requirements for the use of anti-idling equipment;
       ``(III) diesel retrofits; and
       ``(IV) such other matters as the Administrator of the 
     Environmental Protection Agency, in consultation with the 
     Secretary, determine to be appropriate.

       ``(iii) Use of cmaq funds.--A State may use funds made 
     available for the congestion mitigation and air quality 
     program to ensure the deployment of the emission reduction 
     strategies described in clause (i).
                                 ______
                                 
  SA 2335. Mrs. DOLE submitted an amendment intended to be proposed by 
her to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

     SECTION 1. TAX TREATMENT OF STATE ACQUISITION OF RAILROAD 
                   REAL ESTATE INVESTMENT TRUST.

       (a) In General.--If a State acquires all of the outstanding 
     stock of a real estate investment trust which is a non-
     operating class III railroad and substantially all of the 
     activities of which consist of the ownership, leasing, and 
     operation by such trust of facilities, equipment, and other 
     property used by the trust or other persons in railroad 
     transportation, then, for purposes of section 115 of the 
     Internal Revenue Code of 1986--
       (1) such activities shall be treated as the exercise of an 
     essential governmental function, and
       (2) income derived from such activities shall be treated as 
     accruing to the State.
       (b) Gain or Loss Not Recognized on Conversion.--
     Notwithstanding section 337(d) of the Internal Revenue Code 
     of 1986, no gain or less shall be recognized under section 
     336 or 337 of such Code because of the change of status of 
     the real estate investment trust to a tax-exempt entity by 
     reason of the application of subsection (a).
       (c) Tax-Exempt Financing.--Any obligation issued by the 
     entity described in subsection (a) shall be treated as an 
     obligation of the State for purposes of applying section 103 
     and part IV of subchapter B of chapter 1 of the Internal 
     Revenue Code of 1986.
       (d) Definitions.--For purposes of this section--
       (1) Real estate investment trust.--The term ``real estate 
     investment trust'' has the meaning given such term by section 
     856(a) of the Internal Revenue Code of 1986.
       (2) Non-operating class iii railroad.--The term ``non-
     operating class III railroad'' has the meaning given such 
     term by part A of subtitle IV of title 49, United States Code 
     (49 U.S.C. 10101 et seq.) and the regulations thereunder.
       (3) State.--The term ``State'' includes--
       (A) the District of Columbia and any possession of the 
     United States, and
       (B) any authority, agency, or public corporation of a 
     State.
       (e) Applicability.--This section shall apply on and after 
     the date of any acquisition described in subsection (a).
                                 ______
                                 
  SA 2336. Mr. COLEMAN (for himself and Mr. Dayton) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end, add the following new title:

                   TITLE V--MISCELLANEOUS PROVISIONS

     SEC. 5001. REIMBURSEMENT OF CERTAIN TRANSPORTATION COSTS 
                   INCURRED BY MEMBERS OF THE UNITED STATES ARMED 
                   FORCES ON REST AND RECUPERATION LEAVE.

       The Secretary of Defense shall reimburse a member of the 
     United States Armed Forces (out of funds available for the 
     Armed Forces for operation and maintenance for the relevant 
     fiscal year) for transportation expenses incurred by such 
     member for one round trip by such member between two 
     locations within the United States in connection with leave 
     taken under the Central Command Rest and Recuperation Leave 
     Program during the period beginning on September 25, 2003, 
     and ending on December 18, 2003.
                                 ______
                                 
  SA 2337. Mr. COLEMAN (for himself and Mr. Dayton) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end, add the following new title:

                   TITLE V--MISCELLANEOUS PROVISIONS

     SEC. 5001. REIMBURSEMENT OF CERTAIN TRANSPORTATION COSTS 
                   INCURRED BY MEMBERS OF THE UNITED STATES ARMED 
                   FORCES ON REST AND RECUPERATION LEAVE.

       The Secretary of Defense shall reimburse a member of the 
     United States Armed Forces (out of funds available for the 
     Armed Forces for operation and maintenance for the relevant 
     fiscal year) for transportation expenses incurred by such 
     member for one round trip by such member between two 
     locations within the United States in connection with leave 
     taken under the Central Command Rest and Recuperation Leave 
     Program during the period beginning on September 25, 2003, 
     and ending on December 18, 2003.
                                 ______
                                 
  SA 2338. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, add the following:

     SEC. 201. ALTERNATIVE MOTOR VEHICLE CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to foreign tax credit, etc.) is amended 
     by adding at the end the following new section:

     ``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of--
       ``(1) the new qualified fuel cell motor vehicle credit 
     determined under subsection (b),
       ``(2) the new qualified hybrid motor vehicle credit 
     determined under subsection (c), and
       ``(3) the new qualified alternative fuel motor vehicle 
     credit determined under subsection (d).
       ``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified fuel cell motor vehicle credit determined under 
     this subsection with respect to a new qualified fuel cell 
     motor vehicle placed in service by the taxpayer during the 
     taxable year is--
       ``(A) $4,000, if such vehicle has a gross vehicle weight 
     rating of not more than 8,500 pounds,
       ``(B) $10,000, if such vehicle has a gross vehicle weight 
     rating of more than 8,500 pounds but not more than 14,000 
     pounds,
       ``(C) $20,000, if such vehicle has a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(D) $40,000, if such vehicle has a gross vehicle weight 
     rating of more than 26,000 pounds.

[[Page S1072]]

       ``(2) Increase for fuel efficiency.--
       ``(A) In general.--The amount determined under paragraph 
     (1)(A) with respect to a new qualified fuel cell motor 
     vehicle which is a passenger automobile or light truck shall 
     be increased by--
       ``(i) $1,000, if such vehicle achieves at least 150 percent 
     but less than 175 percent of the 2002 model year city fuel 
     economy,
       ``(ii) $1,500, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2002 model year city 
     fuel economy,
       ``(iii) $2,000, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2002 model year city 
     fuel economy,
       ``(iv) $2,500, if such vehicle achieves at least 225 
     percent but less than 250 percent of the 2002 model year city 
     fuel economy,
       ``(v) $3,000, if such vehicle achieves at least 250 percent 
     but less than 275 percent of the 2002 model year city fuel 
     economy,
       ``(vi) $3,500, if such vehicle achieves at least 275 
     percent but less than 300 percent of the 2002 model year city 
     fuel economy, and
       ``(vii) $4,000, if such vehicle achieves at least 300 
     percent of the 2002 model year city fuel economy.
       ``(B) 2002 model year city fuel economy.--For purposes of 
     subparagraph (A), the 2002 model year city fuel economy with 
     respect to a vehicle shall be determined in accordance with 
     the following tables:
       ``(i) In the case of a passenger automobile:

``If vehicle inertia weight clThe 2002 model year city fuel economy is:
1,500 or 1,750 lbs............................................45.2 mpg 
2,000 lbs.....................................................39.6 mpg 
2,250 lbs.....................................................35.2 mpg 
2,500 lbs.....................................................31.7 mpg 
2,750 lbs.....................................................28.8 mpg 
3,000 lbs.....................................................26.4 mpg 
3,500 lbs.....................................................22.6 mpg 
4,000 lbs.....................................................19.8 mpg 
4,500 lbs.....................................................17.6 mpg 
5,000 lbs.....................................................15.9 mpg 
5,500 lbs.....................................................14.4 mpg 
6,000 lbs.....................................................13.2 mpg 
6,500 lbs.....................................................12.2 mpg 
7,000 to 8,500 lbs............................................11.3 mpg.
       ``(ii) In the case of a light truck:

                                               The 2002 model year city
``If vehicle inertia weight class is:                  fuel economy is:
1,500 or 1,750 lbs............................................39.4 mpg 
2,000 lbs.....................................................35.2 mpg 
2,250 lbs.....................................................31.8 mpg 
2,500 lbs.....................................................29.0 mpg 
2,750 lbs.....................................................26.8 mpg 
3,000 lbs.....................................................24.9 mpg 
3,500 lbs.....................................................21.8 mpg 
4,000 lbs.....................................................19.4 mpg 
4,500 lbs.....................................................17.6 mpg 
5,000 lbs.....................................................16.1 mpg 
5,500 lbs.....................................................14.8 mpg 
6,000 lbs.....................................................13.7 mpg 
6,500 lbs.....................................................12.8 mpg 
7,000 to 8,500 lbs............................................12.1 mpg.

       ``(C) Vehicle inertia weight class.--For purposes of 
     subparagraph (B), the term `vehicle inertia weight class' has 
     the same meaning as when defined in regulations prescribed by 
     the Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(3) New qualified fuel cell motor vehicle.--For purposes 
     of this subsection, the term `new qualified fuel cell motor 
     vehicle' means a motor vehicle--
       ``(A) which is propelled by power derived from one or more 
     cells which convert chemical energy directly into electricity 
     by combining oxygen with hydrogen fuel which is stored on 
     board the vehicle in any form and may or may not require 
     reformation prior to use,
       ``(B) which, in the case of a passenger automobile or light 
     truck--
       ``(i) for 2002 and later model vehicles, has received a 
     certificate of conformity under the Clean Air Act and meets 
     or exceeds the equivalent qualifying California low emission 
     vehicle standard under section 243(e)(2) of the Clean Air Act 
     for that make and model year, and
       ``(ii) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds the Bin 5 Tier 
     II emission level established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(E) which is made by a manufacturer.
       ``(c) New Qualified Hybrid Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified hybrid motor vehicle credit determined under this 
     subsection with respect to a new qualified hybrid motor 
     vehicle placed in service by the taxpayer during the taxable 
     year is the credit amount determined under paragraph (2).
       ``(2) Credit amount.--
       ``(A) In general.--The credit amount determined under this 
     paragraph shall be determined in accordance with the 
     following tables:
       ``(i) In the case of a new qualified hybrid motor vehicle 
     which is a passenger automobile or light truck and which 
     provides the following percentage of the maximum available 
     power:

``If percentage of the maximum available power is:The credit amount is:
  At least 4 percent but less than 10 percent.................$250 ....

  At least 10 percent but less than 20 percent................$500 ....

  At least 20 percent but less than 30 percent................$750 ....

  At least 30 percent.......................................$1,000.....

       ``(ii) In the case of a new qualified hybrid motor vehicle 
     which is a heavy duty hybrid motor vehicle and which provides 
     the following percentage of the maximum available power:

       ``(I) If such vehicle has a gross vehicle weight rating of 
     not more than 14,000 pounds:

``If percentage of the maximum available power is:The credit amount is:
  At least 20 percent but less than 30 percent..............$1,000 ....

  At least 30 percent but less than 40 percent..............$1,750 ....

  At least 40 percent but less than 50 percent..............$2,000 ....

  At least 50 percent but less than 60 percent..............$2,250 ....

  At least 60 percent.......................................$2,500.....

       ``(II) If such vehicle has a gross vehicle weight rating of 
     more than 14,000 but not more than 26,000 pounds:

``If percentage of the maximum available power is:The credit amount is:
  At least 20 percent but less than 30 percent..............$4,000 ....

  At least 30 percent but less than 40 percent..............$4,500 ....

  At least 40 percent but less than 50 percent..............$5,000 ....

  At least 50 percent but less than 60 percent..............$5,500 ....

  At least 60 percent.......................................$6,000.....

       ``(III) If such vehicle has a gross vehicle weight rating 
     of more than 26,000 pounds:

``If percentage of the maximum available power is:The credit amount is:
  At least 20 percent but less than 30 percent..............$6,000 ....

  At least 30 percent but less than 40 percent..............$7,000 ....

  At least 40 percent but less than 50 percent..............$8,000 ....

  At least 50 percent but less than 60 percent..............$9,000 ....

  At least 60 percent......................................$10,000.....

       ``(B) Increase for fuel efficiency.--
       ``(i) Amount.--The amount determined under subparagraph 
     (A)(i) with respect to a new qualified hybrid motor vehicle 
     which is a passenger automobile or light truck shall be 
     increased by--

       ``(I) $500, if such vehicle achieves at least 125 percent 
     but less than 150 percent of the 2002 model year city fuel 
     economy,
       ``(II) $1,000, if such vehicle achieves at least 150 
     percent but less than 175 percent of the 2002 model year city 
     fuel economy,
       ``(III) $1,500, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2002 model year city 
     fuel economy,
       ``(IV) $2,000, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2002 model year city 
     fuel economy,
       ``(V) $2,500, if such vehicle achieves at least 225 percent 
     but less than 250 percent of the 2002 model year city fuel 
     economy, and
       ``(VI) $3,000, if such vehicle achieves at least 250 
     percent of the 2002 model year city fuel economy.

       ``(ii) 2002 model year city fuel economy.--For purposes of 
     clause (i), the 2002 model year city fuel economy with 
     respect to a vehicle shall be determined using the tables 
     provided in subsection (b)(2)(B) with respect to such 
     vehicle.
       ``(C) Increase for accelerated emissions performance.--The 
     amount determined under subparagraph (A)(ii) with respect to 
     an applicable heavy duty hybrid motor vehicle shall be 
     increased by the increased credit amount determined in 
     accordance with the following tables:
       ``(i) In the case of a vehicle which has a gross vehicle 
     weight rating of not more than 14,000 pounds:

``If the model year is:                 The increased credit amount is:
  2003......................................................$3,000 ....

  2004......................................................$2,500 ....

  2005......................................................$2,000 ....

  2006......................................................$1,500.....

       ``(ii) In the case of a vehicle which has a gross vehicle 
     weight rating of more than 14,000 pounds but not more than 
     26,000 pounds:

``If the model year is:                 The increased credit amount is:
  2003......................................................$7,750 ....

  2004......................................................$6,500 ....

  2005......................................................$5,250 ....

  2006......................................................$4,000.....

       ``(iii) In the case of a vehicle which has a gross vehicle 
     weight rating of more than 26,000 pounds:

The increased credit amount is:
  2003.....................................................$12,000 ....

[[Page S1073]]

  2004.....................................................$10,000 ....

  2005......................................................$8,000 ....

  2006......................................................$6,000.....

       ``(D) Definitions.--
       ``(i) Applicable heavy duty hybrid motor vehicle.--For 
     purposes of subparagraph (C), the term `applicable heavy duty 
     hybrid motor vehicle' means a heavy duty hybrid motor vehicle 
     which is powered by an internal combustion or heat engine 
     which is certified as meeting the emission standards set in 
     the regulations prescribed by the Administrator of the 
     Environmental Protection Agency for 2007 and later model year 
     diesel heavy duty engines, or for 2008 and later model year 
     ottocycle heavy duty engines, as applicable.
       ``(ii) Heavy duty hybrid motor vehicle.--For purposes of 
     this paragraph, the term `heavy duty hybrid motor vehicle' 
     means a new qualified hybrid motor vehicle which has a gross 
     vehicle weight rating of more than 10,000 pounds and draws 
     propulsion energy from both of the following onboard sources 
     of stored energy:

       ``(I) An internal combustion or heat engine using 
     consumable fuel which, for 2002 and later model vehicles, has 
     received a certificate of conformity under the Clean Air Act 
     and meets or exceeds a level of not greater than 3.0 grams 
     per brake horsepower-hour of oxides of nitrogen and 0.01 per 
     brake horsepower-hour of particulate matter.
       ``(II) A rechargeable energy storage system.

       ``(iii) Maximum available power.--

       ``(I) Passenger automobile or light truck.--For purposes of 
     subparagraph (A)(i), the term `maximum available power' means 
     the maximum power available from the rechargeable energy 
     storage system, during a standard 10 second pulse power or 
     equivalent test, divided by such maximum power and the SAE 
     net power of the heat engine.
       ``(II) Heavy duty hybrid motor vehicle.--For purposes of 
     subparagraph (A)(ii), the term `maximum available power' 
     means the maximum power available from the rechargeable 
     energy storage system, during a standard 10 second pulse 
     power or equivalent test, divided by the vehicle's total 
     traction power. The term `total traction power' means the sum 
     of the peak power from the rechargeable energy storage system 
     and the heat engine peak power of the vehicle, except that if 
     such storage system is the sole means by which the vehicle 
     can be driven, the total traction power is the peak power of 
     such storage system.

       ``(3) New qualified hybrid motor vehicle.--For purposes of 
     this subsection, the term `new qualified hybrid motor 
     vehicle' means a motor vehicle--
       ``(A) which draws propulsion energy from onboard sources of 
     stored energy which are both--
       ``(i) an internal combustion or heat engine using 
     combustible fuel, and
       ``(ii) a rechargeable energy storage system,
       ``(B) which, in the case of a passenger automobile or light 
     truck--
       ``(i) for 2002 and later model vehicles, has received a 
     certificate of conformity under the Clean Air Act and meets 
     or exceeds the equivalent qualifying California low emission 
     vehicle standard under section 243(e)(2) of the Clean Air Act 
     for that make and model year, and
       ``(ii) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds the Bin 5 Tier 
     II emission level established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(E) which is made by a manufacturer.
       ``(d) New Qualified Alternative Fuel Motor Vehicle 
     Credit.--
       ``(1) Allowance of credit.--Except as provided in paragraph 
     (5), the new qualified alternative fuel motor vehicle credit 
     determined under this subsection is an amount equal to the 
     applicable percentage of the incremental cost of any new 
     qualified alternative fuel motor vehicle placed in service by 
     the taxpayer during the taxable year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage with respect to any new 
     qualified alternative fuel motor vehicle is--
       ``(A) 40 percent, plus
       ``(B) 30 percent, if such vehicle--
       ``(i) has received a certificate of conformity under the 
     Clean Air Act and meets or exceeds the most stringent 
     standard available for certification under the Clean Air Act 
     for that make and model year vehicle (other than a zero 
     emission standard), or
       ``(ii) has received an order certifying the vehicle as 
     meeting the same requirements as vehicles which may be sold 
     or leased in California and meets or exceeds the most 
     stringent standard available for certification under the 
     State laws of California (enacted in accordance with a waiver 
     granted under section 209(b) of the Clean Air Act) for that 
     make and model year vehicle (other than a zero emission 
     standard).
       ``(3) Incremental cost.--For purposes of this subsection, 
     the incremental cost of any new qualified alternative fuel 
     motor vehicle is equal to the amount of the excess of the 
     manufacturer's suggested retail price for such vehicle over 
     such price for a gasoline or diesel fuel motor vehicle of the 
     same model, to the extent such amount does not exceed--
       ``(A) $5,000, if such vehicle has a gross vehicle weight 
     rating of not more than 8,500 pounds,
       ``(B) $10,000, if such vehicle has a gross vehicle weight 
     rating of more than 8,500 pounds but not more than 14,000 
     pounds,
       ``(C) $25,000, if such vehicle has a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(D) $40,000, if such vehicle has a gross vehicle weight 
     rating of more than 26,000 pounds.
       ``(4)New qualified alternative fuel motor vehicle.--For 
     purposes of this subsection--
       ``(A) In general.--The term `new qualified alternative fuel 
     motor vehicle' means any motor vehicle--
       ``(i) which is only capable of operating on an alternative 
     fuel,
       ``(ii) the original use of which commences with the 
     taxpayer,
       ``(iii) which is acquired by the taxpayer for use or lease, 
     but not for resale, and
       ``(iv) which is made by a manufacturer.
       ``(B) Alternative fuel.--The term `alternative fuel' means 
     compressed natural gas, liquefied natural gas, liquefied 
     petroleum gas, hydrogen, and any liquid at least 85 percent 
     of the volume of which consists of methanol.
       ``(5) Credit for mixed-fuel vehicles.--
       ``(A) In general.--In the case of a mixed-fuel vehicle 
     placed in service by the taxpayer during the taxable year, 
     the credit determined under this subsection is an amount 
     equal to--
       ``(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent 
     of the credit which would have been allowed under this 
     subsection if such vehicle was a qualified alternative fuel 
     motor vehicle, and
       ``(ii) in the case of a 90/10 mixed-fuel vehicle, 90 
     percent of the credit which would have been allowed under 
     this subsection if such vehicle was a qualified alternative 
     fuel motor vehicle.
       ``(B) Mixed-fuel vehicle.--For purposes of this subsection, 
     the term `mixed-fuel vehicle' means any motor vehicle 
     described in subparagraph (C) or (D) of paragraph (3), 
     which--
       ``(i) is certified by the manufacturer as being able to 
     perform efficiently in normal operation on a combination of 
     an alternative fuel and a petroleum-based fuel,
       ``(ii) either--

       ``(I) has received a certificate of conformity under the 
     Clean Air Act, or
       ``(II) has received an order certifying the vehicle as 
     meeting the same requirements as vehicles which may be sold 
     or leased in California and meets or exceeds the low emission 
     vehicle standard under section 88.105-94 of title 40, Code of 
     Federal Regulations, for that make and model year vehicle,

       ``(iii) the original use of which commences with the 
     taxpayer,
       ``(iv) which is acquired by the taxpayer for use or lease, 
     but not for resale, and
       ``(v) which is made by a manufacturer.
       ``(C) 75/25 mixed-fuel vehicle.--For purposes of this 
     subsection, the term `75/25 mixed-fuel vehicle' means a 
     mixed-fuel vehicle which operates using at least 75 percent 
     alternative fuel and not more than 25 percent petroleum-based 
     fuel.
       ``(D) 90/10 mixed-fuel vehicle.--For purposes of this 
     subsection, the term `90/10 mixed-fuel vehicle' means a 
     mixed-fuel vehicle which operates using at least 90 percent 
     alternative fuel and not more than 10 percent petroleum-based 
     fuel.
       ``(e) Application With Other Credits.--The credit allowed 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(1) the regular tax for the taxable year reduced by the 
     sum of the credits allowable under subpart A and sections 27, 
     29, and 30, over
       ``(2) the tentative minimum tax for the taxable year.
       ``(f) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Consumable fuel.--The term `consumable fuel' means 
     any solid, liquid, or gaseous matter which releases energy 
     when consumed by an auxiliary power unit.
       ``(2) Motor vehicle.--The term `motor vehicle' has the 
     meaning given such term by section 30(c)(2).
       ``(3) City fuel economy.--The city fuel economy with 
     respect to any vehicle shall be measured in a manner which is 
     substantially similar to the manner city fuel economy is 
     measured in accordance with procedures under part 600 of 
     subchapter Q of chapter I of title 40, Code of Federal 
     Regulations, as in effect on the date of the enactment of 
     this section.
       ``(4) Other terms.--The terms `automobile', `passenger 
     automobile', `light truck', and `manufacturer' have the 
     meanings given such terms in regulations prescribed by the 
     Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(5)  Reduction in basis.--For purposes of this subtitle, 
     the basis of any property for which a credit is allowable 
     under subsection (a) shall be reduced by the amount of such 
     credit so allowed (determined without regard to subsection 
     (e)).
       ``(6) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter--
       ``(A) for any incremental cost taken into account in 
     computing the amount of the

[[Page S1074]]

     credit determined under subsection (d) shall be reduced by 
     the amount of such credit attributable to such cost, and
       ``(B) with respect to a vehicle described under subsection 
     (b) or (c), shall be reduced by the amount of credit allowed 
     under subsection (a) for such vehicle for the taxable year.
       ``(7) Property used by tax-exempt entities.--In the case of 
     a credit amount which is allowable with respect to a motor 
     vehicle which is acquired by an entity exempt from tax under 
     this chapter, the person which sells or leases such vehicle 
     to the entity shall be treated as the taxpayer with respect 
     to the vehicle for purposes of this section and the credit 
     shall be allowed to such person, but only if the person 
     clearly discloses to the entity at the time of any sale or 
     lease the specific amount of any credit otherwise allowable 
     to the entity under this section.
       ``(8) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit (including 
     recapture in the case of a lease period of less than the 
     economic life of a vehicle).
       ``(9) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed under subsection (a) 
     with respect to any property referred to in section 50(b) or 
     with respect to the portion of the cost of any property taken 
     into account under section 179.
       ``(10) Election to not take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(11) Carryback and carryforward allowed.--
       ``(A) In general.--If the credit amount allowable under 
     subsection (a) for a taxable year exceeds the amount of the 
     limitation under subsection (e) for such taxable year (in 
     this paragraph referred to as the `unused credit year'), such 
     excess shall be allowed as a credit carryback for each of the 
     3 taxable years beginning after the date of the enactment of 
     this paragraph, which precede the unused credit year and a 
     credit carryforward for each of the 20 taxable years which 
     succeed the unused credit year.
       ``(B) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryback and credit 
     carryforward under subparagraph (A).
       ``(12) Interaction with air quality and motor vehicle 
     safety standards.--Unless otherwise provided in this section, 
     a motor vehicle shall not be considered eligible for a credit 
     under this section unless such vehicle is in compliance 
     with--
       ``(A) the applicable provisions of the Clean Air Act for 
     the applicable make and model year of the vehicle (or 
     applicable air quality provisions of State law in the case of 
     a State which has adopted such provision under a waiver under 
     section 209(b) of the Clean Air Act), and
       ``(B) the motor vehicle safety provisions of sections 30101 
     through 30169 of title 49, United States Code.
       ``(g) Regulations.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall promulgate such regulations as necessary to 
     carry out the provisions of this section.
       ``(2) Coordination in prescription of certain 
     regulations.--The Secretary of the Treasury, in coordination 
     with the Secretary of Transportation and the Administrator of 
     the Environmental Protection Agency, shall prescribe such 
     regulations as necessary to determine whether a motor vehicle 
     meets the requirements to be eligible for a credit under this 
     section.
       ``(h) Termination.--This section shall not apply to any 
     property purchased after--
       ``(1) in the case of a new qualified fuel cell motor 
     vehicle (as described in subsection (b)), December 31, 2011, 
     and
       ``(2) in the case of any other property, December 31, 
     2006.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (27), by striking the period at the end of 
     paragraph (28) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(29) to the extent provided in section 30B(f)(5).''.
       (2) Section 55(c)(2) is amended by inserting ``30B(e),'' 
     after ``30(b)(3)''.
       (3) Section 6501(m) is amended by inserting ``30B(f)(10),'' 
     after ``30(d)(4),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 30A the following new item:

``Sec. 30B. Alternative motor vehicle credit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 202. MODIFICATION OF CREDIT FOR QUALIFIED ELECTRIC 
                   VEHICLES.

       (a) Amount of Credit.--
       (1) In general.--Section 30(a) (relating to allowance of 
     credit) is amended by striking ``10 percent of''.
       (2) Limitation of credit according to type of vehicle.--
     Section 30(b) (relating to limitations) is amended--
       (A) by striking paragraphs (1) and (2) and inserting the 
     following new paragraph:
       ``(1) Limitation according to type of vehicle.--The amount 
     of the credit allowed under subsection (a) for any vehicle 
     shall not exceed the greatest of the following amounts 
     applicable to such vehicle:
       ``(A) In the case of a vehicle which conforms to the Motor 
     Vehicle Safety Standard 500 prescribed by the Secretary of 
     Transportation, as in effect on the date of the enactment of 
     the Energy Tax Incentives Act of 2003, the lesser of--
       ``(i) 10 percent of the manufacturer's suggested retail 
     price of the vehicle, or
       ``(ii) $1,500.
       ``(B) In the case of a vehicle not described in 
     subparagraph (A) with a gross vehicle weight rating not 
     exceeding 8,500 pounds--
       ``(i) $3,500, or
       ``(ii) $6,000, if such vehicle is--

       ``(I) capable of a driving range of at least 100 miles on a 
     single charge of the vehicle's rechargeable batteries as 
     measured pursuant to the urban dynamometer schedules under 
     appendix I to part 86 of title 40, Code of Federal 
     Regulations, or
       ``(II) capable of a payload capacity of at least 1,000 
     pounds.

       ``(C) In the case of a vehicle with a gross vehicle weight 
     rating exceeding 8,500 but not exceeding 14,000 pounds, 
     $10,000.
       ``(D) In the case of a vehicle with a gross vehicle weight 
     rating exceeding 14,000 but not exceeding 26,000 pounds, 
     $20,000.
       ``(E) In the case of a vehicle with a gross vehicle weight 
     rating exceeding 26,000 pounds, $40,000.'', and
       (B) by redesignating paragraph (3) as paragraph (2).
       (3) Conforming amendments.--
       (A) Section 53(d)(1)(B)(iii) is amended by striking 
     ``section 30(b)(3)(B)'' and inserting ``section 
     30(b)(2)(B)''.
       (3) Section 55(c)(2), as amended by this Act, is amended by 
     striking ``30(b)(3)'' and inserting ``30(b)(2)''.
       (b) Qualified Battery Electric Vehicle.--
       (1) In general.--Section 30(c)(1)(A) (defining qualified 
     electric vehicle) is amended to read as follows:
       ``(A) which is--
       ``(i) operated solely by use of a battery or battery pack, 
     or
       ``(ii) powered primarily through the use of an electric 
     battery or battery pack using a flywheel or capacitor which 
     stores energy produced by an electric motor through 
     regenerative braking to assist in vehicle operation,''.
       (2) Leased vehicles.--Section 30(c)(1)(C) is amended by 
     inserting ``or lease'' after ``use''.
       (3) Conforming amendments.--
       (A) Subsections (a), (b)(2), and (c) of section 30 are each 
     amended by inserting ``battery'' after ``qualified'' each 
     place it appears.
       (B) The heading of subsection (c) of section 30 is amended 
     by inserting ``Battery'' after ``Qualified''.
       (C) The heading of section 30 is amended by inserting 
     ``battery'' after ``qualified''.
       (D) The item relating to section 30 in the table of 
     sections for subpart B of part IV of subchapter A of chapter 
     1 is amended by inserting ``battery'' after ``qualified''.
       (E) Section 179A(c)(3) is amended by inserting ``battery'' 
     before ``electric''.
       (F) The heading of paragraph (3) of section 179A(c) is 
     amended by inserting ``battery'' before ``electric''.
       (c) Additional Special Rules.--Section 30(d) (relating to 
     special rules) is amended by adding at the end the following 
     new paragraphs:
       ``(5) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter for any cost taken 
     into account in computing the amount of the credit determined 
     under subsection (a) shall be reduced by the amount of such 
     credit attributable to such cost.
       ``(6) Property used by tax-exempt entities.--In the case of 
     a credit amount which is allowable with respect to a vehicle 
     which is acquired by an entity exempt from tax under this 
     chapter, the person which sells or leases such vehicle to the 
     entity shall be treated as the taxpayer with respect to the 
     vehicle for purposes of this section and the credit shall be 
     allowed to such person, but only if the person clearly 
     discloses to the entity at the time of any sale or lease the 
     specific amount of any credit otherwise allowable to the 
     entity under this section.
       ``(7) Carryback and carryforward allowed.--
       ``(A) In general.--If the credit amount allowable under 
     subsection (a) for a taxable year exceeds the amount of the 
     limitation under subsection (b)(2) for such taxable year (in 
     this paragraph referred to as the `unused credit year'), such 
     excess shall be allowed as a credit carryback for each of the 
     3 taxable years beginning after the date of the enactment of 
     this paragraph, which precede the unused credit year and a 
     credit carryforward for each of the 20 taxable years which 
     succeed the unused credit year.
       ``(B) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryback and credit 
     carryforward under subparagraph (A).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 203. CREDIT FOR INSTALLATION OF ALTERNATIVE FUELING 
                   STATIONS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to foreign tax credit, etc.), as amended 
     by this Act, is amended by adding at the end the following 
     new section:

[[Page S1075]]

     ``SEC. 30C. CLEAN-FUEL VEHICLE REFUELING PROPERTY CREDIT.

       ``(a) Credit Allowed.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to 50 percent of the amount paid or incurred 
     by the taxpayer during the taxable year for the installation 
     of qualified clean-fuel vehicle refueling property.
       ``(b) Limitation.--The credit allowed under subsection 
     (a)--
       ``(1) with respect to any retail clean-fuel vehicle 
     refueling property, shall not exceed $30,000, and
       ``(2) with respect to any residential clean-fuel vehicle 
     refueling property, shall not exceed $1,000.
       ``(c) Year Credit Allowed.--The credit allowed under 
     subsection (a) shall be allowed in the taxable year in which 
     the qualified clean-fuel vehicle refueling property is placed 
     in service by the taxpayer.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified clean-fuel vehicle refueling property.--The 
     term `qualified clean-fuel vehicle refueling property' has 
     the same meaning given such term by section 179A(d).
       ``(2) Residential clean-fuel vehicle refueling property.--
     The term `residential clean-fuel vehicle refueling property' 
     means qualified clean-fuel vehicle refueling property which 
     is installed on property which is used as the principal 
     residence (within the meaning of section 121) of the 
     taxpayer.
       ``(3) Retail clean-fuel vehicle refueling property.--The 
     term `retail clean-fuel vehicle refueling property' means 
     qualified clean-fuel vehicle refueling property which is 
     installed on property (other than property described in 
     paragraph (2)) used in a trade or business of the taxpayer.
       ``(e) Application With Other Credits.--The credit allowed 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(1) the regular tax for the taxable year reduced by the 
     sum of the credits allowable under subpart A and sections 27, 
     29, 30, and 30B, over
       ``(2) the tentative minimum tax for the taxable year.
       ``(f) Basis Reduction.--For purposes of this title, the 
     basis of any property shall be reduced by the portion of the 
     cost of such property taken into account under subsection 
     (a).
       ``(g) No Double Benefit.--No deduction shall be allowed 
     under section 179A with respect to any property with respect 
     to which a credit is allowed under subsection (a).
       ``(h) Refueling Property Installed for Tax-Exempt 
     Entities.--In the case of qualified clean-fuel vehicle 
     refueling property installed on property owned or used by an 
     entity exempt from tax under this chapter, the person which 
     installs such refueling property for the entity shall be 
     treated as the taxpayer with respect to the refueling 
     property for purposes of this section (and such refueling 
     property shall be treated as retail clean-fuel vehicle 
     refueling property) and the credit shall be allowed to such 
     person, but only if the person clearly discloses to the 
     entity in any installation contract the specific amount of 
     the credit allowable under this section.
       ``(i) Carryforward Allowed.--
       ``(1) In general.--If the credit amount allowable under 
     subsection (a) for a taxable year exceeds the amount of the 
     limitation under subsection (e) for such taxable year 
     (referred to as the `unused credit year' in this subsection), 
     such excess shall be allowed as a credit carryforward for 
     each of the 20 taxable years following the unused credit 
     year.
       ``(2) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryforward under 
     paragraph (1).
       ``(j) Special Rules.--Rules similar to the rules of 
     paragraphs (4) and (5) of section 179A(e) shall apply.
       ``(k) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(l) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (b) Modifications to Extension of Deduction for Certain 
     Refueling Property.--
       (1) In general.--Subsection (f) of section 179A is amended 
     to read as follows:
       ``(f) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (2) Extension of phaseout.--Section 179A(b)(1)(B), as 
     amended by section 606(a) of the Job Creation and Worker 
     Assistance Act of 2002, is amended--
       (A) by striking ``calendar year 2004'' in clause (i) and 
     inserting ``calendar years 2004 and 2005 (calendar years 2004 
     through 2009 in the case of property relating to hydrogen) 
     '',
       (B) by striking ``2005'' in clause (ii) and inserting 
     ``2006 (calendar year 2010 in the case of property relating 
     to hydrogen)'', and
       (C) by striking ``2006'' in clause (iii) and inserting 
     ``2007 (calendar year 2011 in the case of property relating 
     to hydrogen)''.
       (c) Incentive for Production of Hydrogen at Qualified 
     Clean-Fuel Vehicle Refueling Property.--Section 179A(d) 
     (defining qualified clean-fuel vehicle refueling property) is 
     amended by adding at the end the following new flush 
     sentence:

     ``In the case of clean-burning fuel which is hydrogen 
     produced from another clean-burning fuel, paragraph (3)(A) 
     shall be applied by substituting `production, storage, or 
     dispensing' for `storage or dispensing' both places it 
     appears.''.
       (d) Conforming Amendments.--(1) Section 1016(a), as amended 
     by this Act, is amended by striking ``and'' at the end of 
     paragraph (28), by striking the period at the end of 
     paragraph (29) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(30) to the extent provided in section 30C(f).''.
       (2) Section 55(c)(2), as amended by this Act, is amended by 
     inserting ``30C(e),'' after ``30B(e)''.
       (3) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by inserting after the item relating to section 30B the 
     following new item:

``Sec. 30C. Clean-fuel vehicle refueling property credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 204. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS AS 
                   MOTOR VEHICLE FUEL.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by inserting after section 40 the following new section:

     ``SEC. 40A. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS AS 
                   MOTOR VEHICLE FUEL.

       ``(a) General Rule.--For purposes of section 38, the 
     alternative fuel retail sales credit for any taxable year is 
     the applicable amount for each gasoline gallon equivalent of 
     alternative fuel sold at retail by the taxpayer during such 
     year as a fuel to propel any qualified motor vehicle.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Applicable amount.--The term `applicable amount' 
     means the amount determined in accordance with the following 
     table:

``In the case of any taxable year ending in--The applicable amount is--
  2003........................................................30 cents 
  2004........................................................40 cents 
  2005 and 2006...............................................50 cents.
       ``(2) Alternative fuel.--The term `alternative fuel' means 
     compressed natural gas, liquefied natural gas, liquefied 
     petroleum gas, hydrogen, and any liquid at least 85 percent 
     of the volume of which consists of methanol or ethanol.
       ``(3) Gasoline gallon equivalent.--The term `gasoline 
     gallon equivalent' means, with respect to any alternative 
     fuel, the amount (determined by the Secretary) of such fuel 
     having a Btu content of 114,000.
       ``(4) Qualified motor vehicle.--The term `qualified motor 
     vehicle' means any motor vehicle (as defined in section 
     30(c)(2)) which meets any applicable Federal or State 
     emissions standards with respect to each fuel by which such 
     vehicle is designed to be propelled.
       ``(5) Sold at retail.--
       ``(A) In general.--The term `sold at retail' means the 
     sale, for a purpose other than resale, after manufacture, 
     production, or importation.
       ``(B) Use treated as sale.--If any person uses alternative 
     fuel (including any use after importation) as a fuel to 
     propel any qualified alternative fuel motor vehicle (as 
     defined in section 30B(d)(4)) before such fuel is sold at 
     retail, then such use shall be treated in the same manner as 
     if such fuel were sold at retail as a fuel to propel such a 
     vehicle by such person.
       ``(c) No Double Benefit.--The amount of any deduction or 
     other credit allowable under this chapter for any fuel taken 
     into account in computing the amount of the credit determined 
     under subsection (a) shall be reduced by the amount of such 
     credit attributable to such fuel.
       ``(d) Pass-Thru in the Case of Estates and Trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(e) Termination.--This section shall not apply to any 
     fuel sold at retail after December 31, 2006.''.
       (b) Credit Treated as Business Credit.--Section 38(b) 
     (relating to current year business credit) is amended by 
     striking ``plus'' at the end of paragraph (14), by striking 
     the period at the end of paragraph (15) and inserting ``, 
     plus'', and by adding at the end the following new paragraph:
       ``(16) the alternative fuel retail sales credit determined 
     under section 40A(a).''.
       (c) Transitional Rule.--Section 39(d) (relating to 
     transitional rules) is amended by adding at the end the 
     following new paragraph:
       ``(11) No carryback of section 40a credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the alternative fuel 
     retail sales credit determined under section 40A(a) may be 
     carried back to a taxable year ending on or before the date 
     of the enactment of such section.''.

[[Page S1076]]

       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 40 the following 
     new item:

``Sec. 40A. Credit for retail sale of alternative fuels as motor 
              vehicle fuel.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to fuel sold at retail after the date of the 
     enactment of this Act, in taxable years ending after such 
     date.
                                 ______
                                 
  SA 2339. Mr. KYL submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike section 5442.
                                 ______
                                 
  SA 2342. Mr. TALENT (for himself, Mr. Wyden, Mr. Corzine, and Mr. 
Coleman) submitted an amendment intended to be proposed by him to the 
bill S. 1072, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 1298, after line 24, add the following:

                    Subtitle H--Build America Bonds

     SEC. 5671. SHORT TITLE; ETC.

       (a) Short Title.--This subtitle may be cited as the ``Build 
     America Bonds Act of 2004''.
       (b) References to Internal Revenue Code of 1986.--Except as 
     otherwise expressly provided, whenever in this subtitle an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Internal Revenue Code of 1986.

     SEC. 5672. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Our Nation's highways, public transportation systems, 
     and rail systems drive our economy, enabling all industries 
     to achieve growth and productivity that makes America strong 
     and prosperous.
       (2) The establishment, maintenance, and improvement of the 
     national transportation network is a national priority, for 
     economic, environmental, energy, security, and other reasons.
       (3) The ability to move people and goods is critical to 
     maintaining State, metropolitan, rural, and local economies.
       (4) The construction of infrastructure requires the skills 
     of numerous occupations, including those in the contracting, 
     engineering, planning and design, materials supply, 
     manufacturing, distribution, and safety industries.
       (5) Investing in transportation infrastructure creates 
     long-term capital assets for the Nation that will help the 
     United States address its enormous infrastructure needs and 
     improve its economic productivity.
       (6) Investment in transportation infrastructure creates 
     jobs and spurs economic activity to put people back to work 
     and stimulate the economy.
       (7) Every billion dollars in transportation investment has 
     the potential to create up to 47,500 jobs.
       (8) Every dollar invested in the Nation's transportation 
     infrastructure yields at least $5.70 in economic benefits 
     because of reduced delays, improved safety, and reduced 
     vehicle operating costs.
       (9) The proposed increases to the Transportation Equity Act 
     for the 21st Century (TEA-21) will not be sufficient to 
     compensate for the Nation's transportation infrastructure 
     deficit.
       (b) Purpose.--The purpose of this subtitle is to provide 
     financing for long-term infrastructure capital investments 
     that are not currently being met by existing transportation 
     and infrastructure investment programs, including mega-
     projects, projects of national significance and high priority 
     projects, multi-State transportation corridors, intermodal 
     transportation facilities, replacement and reconstruction of 
     deficient and obsolete bridges, interstate highways, public 
     transportation systems, and rail systems.

     SEC. 5673. CREDIT TO HOLDERS OF BUILD AMERICA BONDS.

       (a) In General.--Part IV of subchapter A of chapter 1 
     (relating to credits against tax) is amended by adding at the 
     end the following new subpart:

  ``Subpart H--Nonrefundable Credit for Holders of Build America Bonds

``Sec. 54. Credit to holders of Build America bonds.

     ``SEC. 54. CREDIT TO HOLDERS OF BUILD AMERICA BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a Build America bond on a credit allowance date of such 
     bond which occurs during the taxable year, there shall be 
     allowed as a credit against the tax imposed by this chapter 
     for such taxable year an amount equal to the sum of the 
     credits determined under subsection (b) with respect to 
     credit allowance dates during such year on which the taxpayer 
     holds such bond.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a Build America bond is 25 percent of the annual 
     credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any Build America bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate with respect to an issue is 
     the rate equal to an average market yield (as of the day 
     before the date of sale of the issue) on outstanding long-
     term corporate debt obligations (determined in such manner as 
     the Secretary prescribes).
       ``(4) Credit allowance date.--For purposes of this section, 
     the term `credit allowance date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.
     Such term includes the last day on which the bond is 
     outstanding.
       ``(5) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year.
       ``(d) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(e) Build America Bond.--For purposes of this part, the 
     term `Build America bond' means any bond issued as part of an 
     issue if--
       ``(1) the net spendable proceeds from the sale of such 
     issue are to be used--
       ``(A) for expenditures incurred after the date of the 
     enactment of this section for any qualified project, or
       ``(B) for deposit in the Build America Trust Account for 
     repayment of Build America bonds at maturity,
       ``(2) the bond is issued by the Transportation Finance 
     Corporation, is in registered form, and meets the Build 
     America bond limitation requirements under subsection (g),
       ``(3) the Transportation Finance Corporation certifies that 
     it meets the State contribution requirement of subsection (k) 
     with respect to such project, as in effect on the date of 
     issuance,
       ``(4) the Transportation Finance Corporation certifies that 
     the State in which an approved qualified project is located 
     meets the requirement described in subsection (l),
       ``(5) except for bonds issued in accordance with subsection 
     (g)(6), the term of each bond which is part of such issue 
     does not exceed 30 years,
       ``(6) the payment of principal with respect to such bond is 
     the obligation of the Transportation Finance Corporation, and
       ``(7) with respect to bonds described in paragraph (1)(A), 
     the issue meets the requirements of subsection (h) (relating 
     to arbitrage).
       ``(f) Qualified Project.--For purposes of this section--
       ``(1) In general.--The term `qualified project' means any--
       ``(A) qualified highway project,
       ``(B) qualified public transportation project, and
       ``(C) congestion relief project,
     proposed by 1 or more States and approved by the 
     Transportation Finance Corporation.
       ``(2) Qualified highway project.--The term `qualified 
     highway project' means a project for highway facilities or 
     other facilities which are eligible for assistance under 
     title 23, United States Code.
       ``(3) Qualified public transportation project.--The term 
     `qualified public transportation project' means a project for 
     public transportation facilities or other facilities which 
     are eligible for assistance under chapter 53 of title 49, 
     United States Code.
       ``(4) Congestion relief project.--The term `congestion 
     relief project' means an intermodal freight transfer 
     facility, freight rail facility, freight movement corridor, 
     intercity passenger rail or facility, intercity bus vehicle 
     or facility, border crossing facility, or other public or 
     private facility approved as a congestion relief project by 
     the Secretary of Transportation. In making such

[[Page S1077]]

     approvals, the Secretary of Transportation shall--
       ``(A) consider the economic, environmental, mobility, and 
     national security improvements to be realized through the 
     project, and
       ``(B) give preference to projects with national or regional 
     significance, including any projects sponsored by a coalition 
     of States or a combination of States and private sector 
     entities, in terms of generating economic benefits, 
     supporting international commerce, or otherwise enhancing the 
     national transportation system.
       ``(g) Limitation on Amount of Bonds Designated; Allocation 
     of Bond Proceeds.--
       ``(1) National limitation.--There is a Build America bond 
     limitation for each calendar year. Such limitation is--
       ``(A) with respect to bonds described in subsection 
     (e)(1)(A),
       ``(i) $11,000,000,000 for 2004,
       ``(ii) $16,000,000,000 for 2005,
       ``(iii) $16,000,000,000 for 2006,
       ``(iv) $6,000,000,000 for 2007,
       ``(v) $3,500,000,000 for 2008,
       ``(vi) $3,500,000,000 for 2009, and
       ``(vii) except as provided in paragraph (5), zero 
     thereafter, plus
       ``(B) with respect to bonds described in subsection 
     (e)(1)(B), such amount each calendar year as determined 
     necessary by the Transportation Finance Corporation to 
     provide funds in the Build America Trust Account for the 
     repayment of Build America bonds at maturity.
       ``(2) Congestion relief projects.--From Build America bonds 
     issued under the annual limitation in paragraph (1)(A), 
     $1,000,000,000 of net spendable proceeds shall be reserved 
     for each of the calendar years 2004, 2005, 2006, 2007, 2008, 
     and 2009 for allocation to congestion relief projects.
       ``(3) Allocation of bonds for highway and public 
     transportation purposes.--Except with respect to qualified 
     projects described in subsection (j)(3), and subject to 
     paragraphs (2) and (4)--
       ``(A) Qualified highway projects.--From Build America bonds 
     issued under the annual limitation in paragraph (1)(A), the 
     Transportation Finance Corporation shall allocate 80 percent 
     of the net spendable proceeds to the States for qualified 
     highway projects in the following manner:
       ``(i) 50 percent of such allocation shall be in accordance 
     with the formulas for apportioning funds under sections 
     104(b) and 144 of title 23, United States Code.
       ``(ii) 50 percent of such allocation shall be for projects, 
     including projects of national significance and high priority 
     projects, designated by law.
       ``(B) Qualified public transportation projects.--From Build 
     America bonds issued under the annual limitation in paragraph 
     (1)(A), the Transportation Finance Corporation shall allocate 
     20 percent of the net spendable proceeds to the States for 
     qualified public transportation projects in the following 
     manner:
       ``(i) 50 percent of such allocation shall be in accordance 
     with the distribution of public transportation formula grants 
     under sections 5307, 5308, 5310, 5311, and 5327 of title 49, 
     United States Code.
       ``(ii) 50 percent of such allocation shall be for projects, 
     including projects of national significance and high priority 
     projects, designated by law.
       ``(4) Minimum allocations to states.--In making allocations 
     for each calendar year under paragraph (3), the 
     Transportation Finance Corporation shall ensure that the 
     amount allocated for qualified projects located in each State 
     for such calendar year is not less than 1 percent of the 
     total amount allocated for such year.
       ``(5) Carryover of unused issuance limitation.--If for any 
     calendar year the limitation amount imposed by paragraph (1) 
     exceeds the amount of Build America bonds issued during such 
     year, such excess shall be carried forward to one or more 
     succeeding calendar years as an addition to the limitation 
     imposed by paragraph (1) and until used by issuance of Build 
     America bonds.
       ``(6) Issuance of small denomination bonds.--From the Build 
     America bond limitation for each year, the Transportation 
     Finance Corporation shall issue a limited quantity of Build 
     America bonds in small denominations suitable for purchase as 
     gifts by individual investors wishing to show their support 
     for investing in America's infrastructure.
       ``(h) Special Rules Relating to Arbitrage.--
       ``(1) In general.--Subject to paragraph (2), an issue shall 
     be treated as meeting the requirements of this subsection if 
     as of the date of issuance, the Transportation Finance 
     Corporation reasonably expects--
       ``(A) to spend at least 85 percent of the net spendable 
     proceeds from the sale of the issue for 1 or more qualified 
     projects within the 5-year period beginning on such date,
       ``(B) to incur a binding commitment with a third party to 
     spend at least 10 percent of the net spendable proceeds from 
     the sale of the issue, or to commence construction, with 
     respect to such projects within the 12-month period beginning 
     on such date, and
       ``(C) to proceed with due diligence to complete such 
     projects and to spend the net spendable proceeds from the 
     sale of the issue.
       ``(2) Spent proceeds.--Net spendable proceeds are 
     considered spent by the Transportation Finance Corporation 
     when a sponsor of a qualified project obtains a reimbursement 
     from the Transportation Finance Corporation for eligible 
     project costs.
       ``(3) Rules regarding continuing compliance after 5-year 
     determination.--If at least 85 percent of the net spendable 
     proceeds from the sale of the issue is not expended for 1 or 
     more qualified projects within the 5-year period beginning on 
     the date of issuance, but the requirements of paragraph (1) 
     are otherwise met, an issue shall be treated as continuing to 
     meet the requirements of this subsection if the 
     Transportation Finance Corporation uses all unspent net 
     spendable proceeds from the sale of the issue to redeem bonds 
     of the issue within 90 days after the end of such 5-year 
     period.
       ``(4) Reallocation.--In the event the recipient of an 
     allocation under subsection (g) fails to demonstrate to the 
     satisfaction of the Transportation Finance Corporation that 
     its actions will allow the Transportation Finance Corporation 
     to meet the requirements under this subsection, the 
     Transportation Finance Corporation may redistribute the 
     allocation meant for such recipient to other recipients.
       ``(i) Recapture of Portion of Credit Where Cessation of 
     Compliance.--
       ``(1) In general.--If any bond which when issued purported 
     to be a Build America bond ceases to be such a qualified 
     bond, the Transportation Finance Corporation shall pay to the 
     United States (at the time required by the Secretary) an 
     amount equal to the sum of--
       ``(A) the aggregate of the credits allowable under this 
     section with respect to such bond (determined without regard 
     to subsection (c)) for taxable years ending during the 
     calendar year in which such cessation occurs and the 2 
     preceding calendar years, and
       ``(B) interest at the underpayment rate under section 6621 
     on the amount determined under subparagraph (A) for each 
     calendar year for the period beginning on the first day of 
     such calendar year.
       ``(2) Failure to pay.--If the Transportation Finance 
     Corporation fails to timely pay the amount required by 
     paragraph (1) with respect to such bond, the tax imposed by 
     this chapter on each holder of any such bond which is part of 
     such issue shall be increased (for the taxable year of the 
     holder in which such cessation occurs) by the aggregate 
     decrease in the credits allowed under this section to such 
     holder for taxable years beginning in such 3 calendar years 
     which would have resulted solely from denying any credit 
     under this section with respect to such issue for such 
     taxable years.
       ``(3) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (2) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     paragraph (2) shall not be treated as a tax imposed by this 
     chapter for purposes of determining--
       ``(i) the amount of any credit allowable under this part, 
     or
       ``(ii) the amount of the tax imposed by section 55.
       ``(j) Build America Trust Account.--
       ``(1) In general.--The following amounts shall be held in a 
     Build America Trust Account by the Transportation Finance 
     Corporation:
       ``(A) The proceeds from the sale of all bonds issued under 
     this section.
       ``(B) The amount of any matching contributions with respect 
     to such bonds.
       ``(C) The investment earnings on proceeds from the sale of 
     such bonds.
       ``(D) Any earnings on any amounts described in subparagraph 
     (A), (B), or (C).
       ``(2) Use of funds.--Amounts in the Build America Trust 
     Account may be used only to pay costs of qualified projects, 
     redeem Build America bonds, and fund the operations of the 
     Transportation Finance Corporation, except that amounts 
     withdrawn from the Build America Trust Account to pay costs 
     of qualified projects may not exceed the aggregate proceeds 
     from the sale of Build America bonds described in subsection 
     (e)(1)(A).
       ``(3) Use of remaining funds in build america trust 
     account.--Upon the redemption of all Build America bonds 
     issued under this section, any remaining amounts in the Build 
     America Trust Account shall be available to the 
     Transportation Finance Corporation to pay the costs of any 
     qualified project.
       ``(4) Costs of qualified projects.--For purposes of this 
     section, the costs of qualified projects which may be funded 
     by amounts in the Build America Trust Account may only relate 
     to capital investments in depreciable assets and may not 
     include any costs relating to operations, maintenance, or 
     rolling stock.
       ``(5) Applicability of federal law.--The requirements of 
     any Federal law, including titles 23, 40, and 49 of the 
     United States Code, which would otherwise apply to projects 
     to which the United States is a party or to funds made 
     available under such law and projects assisted with those 
     funds shall apply to--
       ``(A) funds made available under the Build America Trust 
     Account for similar qualified projects, including 
     contributions required under subsection (k), and
       ``(B) similar qualified projects assisted by the 
     Transportation Finance Corporation through the use of such 
     funds.
       ``(6) Investment.--It shall be the duty of the 
     Transportation Finance Corporation to invest in investment 
     grade obligations such portion of the Build America Trust 
     Account

[[Page S1078]]

     as is not, in the judgment of the Board of Directors of the 
     Transportation Finance Corporation, required to meet current 
     withdrawals. Such investments may be made in State and local 
     transportation bonds.
       ``(k) State Contribution Requirements.--
       ``(1) In general.--For purposes of subsection (e)(3), the 
     State contribution requirement of this subsection is met with 
     respect to any qualified project if the Transportation 
     Finance Corporation has received from 1 or more States, not 
     later than the date of issuance of the bond, written 
     commitments for matching contributions of not less than 20 
     percent of the cost of the qualified project.
       ``(2) State matching contributions may not include federal 
     funds.--For purposes of this subsection, State matching 
     contributions shall not be derived, directly or indirectly, 
     from Federal funds, including any transfers from the Highway 
     Trust Fund under section 9503.
       ``(l) Utilization of Updated Construction Technology for 
     Qualified Projects.--For purposes of subsection (e)(4), the 
     requirement of this subsection is met if the appropriate 
     State agency relating to the qualified project has updated 
     its accepted construction technologies to match a list 
     prescribed by the Secretary of Transportation and in effect 
     on the date of the approval of the project as a qualified 
     project.
       ``(m) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Administrative costs.--The term `administrative 
     costs' shall only include costs of issuance of Build America 
     bonds and operation costs of the Transportation Corporation.
       ``(2) Bond.--The term `bond' includes any obligation.
       ``(3) Net spendable proceeds.--The term `net spendable 
     proceeds' means the proceeds from the sale of any Build 
     America bond issued under this section reduced by not more 
     than 5 percent of such proceeds for administrative costs.
       ``(4) State.--The term `State' shall have the meaning given 
     such term by section 101 of title 23, United States Code.
       ``(5) Treatment of changes in use.--For purposes of 
     subsection (e)(1)(A), the net spendable proceeds from the 
     sale of an issue shall not be treated as used for a qualified 
     project to the extent that the Transportation Finance 
     Corporation takes any action within its control which causes 
     such proceeds not to be used for a qualified project. The 
     Secretary shall specify remedial actions which may be taken 
     (including conditions to taking such remedial actions) to 
     prevent an action described in the preceding sentence from 
     causing a bond to fail to be a Build America bond.
       ``(6) Partnership; s corporation; and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, rules similar to the 
     rules of section 41(g) shall apply with respect to the credit 
     allowable under subsection (a).
       ``(7) Bonds held by regulated investment companies.--If any 
     Build America bond is held by a regulated investment company, 
     the credit determined under subsection (a) shall be allowed 
     to shareholders of such company under procedures prescribed 
     by the Secretary.
       ``(8) Credits may be stripped.--Under regulations 
     prescribed by the Secretary--
       ``(A) In general.--There may be a separation (including at 
     issuance) of the ownership of a Build America bond and the 
     entitlement to the credit under this section with respect to 
     such bond. In case of any such separation, the credit under 
     this section shall be allowed to the person who on the credit 
     allowance date holds the instrument evidencing the 
     entitlement to the credit and not to the holder of the bond.
       ``(B) Certain rules to apply.--In the case of a separation 
     described in subparagraph (A), the rules of section 1286 
     shall apply to the Build America bond as if it were a 
     stripped bond and to the credit under this section as if it 
     were a stripped coupon.
       ``(9) Credits may be transferred.--Nothing in any law or 
     rule of law shall be construed to limit the transferability 
     of the credit or bond allowed by this section through sale 
     and repurchase agreements.
       ``(10) Reporting.--The Transportation Finance Corporation 
     shall submit reports similar to the reports required under 
     section 149(e).
       ``(11) Prohibition on Use of Highway Trust Fund.--
     Notwithstanding any other provision of law, no funds derived 
     from the Highway Trust Fund established under section 9503 
     shall be used to pay costs associated with the Build America 
     bonds issued under this section.''.
       (b) Amendments to Other Code Sections.--
       (1) Reporting.--Subsection (d) of section 6049 (relating to 
     returns regarding payments of interest) is amended by adding 
     at the end the following new paragraph:
       ``(8) Reporting of credit on build america bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(d) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(b)(4)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A), subsection (b)(4) shall be 
     applied without regard to subparagraphs (A), (H), (I), (J), 
     (K), and (L)(i) of such subsection.
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (2) Treatment for estimated tax purposes.--
       (A) Individual.--Section 6654 (relating to failure by 
     individual to pay estimated income tax) is amended by 
     redesignating subsection (m) as subsection (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Special Rule for Holders of Build America Bonds.--For 
     purposes of this section, the credit allowed by section 54 to 
     a taxpayer by reason of holding a Build America bond on a 
     credit allowance date shall be treated as if it were a 
     payment of estimated tax made by the taxpayer on such 
     date.''.
       (B) Corporate.--Subsection (g) of section 6655 (relating to 
     failure by corporation to pay estimated income tax) is 
     amended by adding at the end the following new paragraph:
       ``(5) Special rule for holders of build america bonds.--For 
     purposes of this section, the credit allowed by section 54 to 
     a taxpayer by reason of holding a Build America bond on a 
     credit allowance date shall be treated as if it were a 
     payment of estimated tax made by the taxpayer on such 
     date.''.
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Subpart H. Nonrefundable Credit for Holders of Build America 
              Bonds.''.

       (2) Section 6401(b)(1) is amended by striking ``and G'' and 
     inserting ``G, and H''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 5674. TRANSPORTATION FINANCE CORPORATION.

       (a) Establishment and Status.--There is established a body 
     corporate to be known as the ``Transportation Finance 
     Corporation'' (hereafter in this section referred to as the 
     ``Corporation''). The Corporation is not a department, 
     agency, or instrumentality of the United States Government, 
     and shall not be subject to title 31, United States Code.
       (b) Principal Office; Application of Laws.--The principal 
     office and place of business of the Corporation shall be in 
     the District of Columbia, and, to the extent consistent with 
     this section, the District of Columbia Business Corporation 
     Act (D.C. Code 29-301 et seq.) shall apply.
       (c) Functions of Corporation.--The Corporation shall--
       (1) issue Build America bonds for the financing of 
     qualified projects as required under section 54 of the 
     Internal Revenue Code of 1986,
       (2) establish and operate the Build America Trust Account 
     as required under section 54(j) of such Code,
       (3) act as a centralized entity to provide financing for 
     qualified projects,
       (4) leverage resources and stimulate public and private 
     investment in transportation infrastructure,
       (5) encourage States to create additional opportunities for 
     the financing of transportation infrastructure and to provide 
     technical assistance to States, if needed,
       (6) perform any other function the sole purpose of which is 
     to carry out the financing of qualified projects through 
     Build America bonds, and
       (7) not later than February 15 of each year submit a report 
     to Congress--
       (A) describing the activities of the Corporation for the 
     preceding year, and
       (B) specifying whether the amounts deposited and expected 
     to be deposited in the Build America Trust Account are 
     sufficient to fully repay at maturity the principal of any 
     outstanding Build America bonds issued pursuant to such 
     section 54.
       (d) Powers of Corporation.--The Corporation--
       (1) may sue and be sued, complain and defend, in its 
     corporate name, in any court of competent jurisdiction,
       (2) may adopt, alter, and use a seal, which shall be 
     judicially noticed,
       (3) may prescribe, amend, and repeal such rules and 
     regulations as may be necessary for carrying out the 
     functions of the Corporation,
       (4) may make and perform such contracts and other 
     agreements with any individual, corporation, or other private 
     or public entity however designated and wherever situated, as 
     may be necessary for carrying out the functions of the 
     Corporation,
       (5) may determine and prescribe the manner in which its 
     obligations shall be incurred and its expenses allowed and 
     paid,
       (6) may, as necessary for carrying out the functions of the 
     Corporation, employ and fix the compensation of employees and 
     officers,
       (7) may lease, purchase, or otherwise acquire, own, hold, 
     improve, use, or otherwise deal in and with such property 
     (real, personal, or mixed) or any interest therein, wherever 
     situated, as may be necessary for carrying out the functions 
     of the Corporation,
       (8) may accept gifts or donations of services or of 
     property (real, personal, or mixed), tangible or intangible, 
     in furtherance of the purposes of this Act, and
       (9) shall have such other powers as may be necessary and 
     incident to carrying out this Act.

[[Page S1079]]

       (e) Nonprofit Entity; Restriction on Use of Moneys; 
     Conflict of Interests; Audits.--
       (1) Nonprofit entity.--The Corporation shall be a nonprofit 
     corporation and shall have no capital stock.
       (2) Restriction.--No part of the Corporation's revenue, 
     earnings, or other income or property shall inure to the 
     benefit of any of its directors, officers, or employees, and 
     such revenue, earnings, or other income or property shall 
     only be used for carrying out the purposes of this Act.
       (3) Conflict of interests.--No director, officer, or 
     employee of the Corporation shall in any manner, directly or 
     indirectly participate in the deliberation upon or the 
     determination of any question affecting his or her personal 
     interests or the interests of any corporation, partnership, 
     or organization in which he or she is directly or indirectly 
     interested.
       (4) Audits.--
       (A) Audits by independent certified public accountants.--
       (i) In general.--The Corporation's financial statements 
     shall be audited annually in accordance with generally 
     accepted auditing standards by independent certified public 
     accountants that are certified by a regulatory authority of a 
     State or other political subdivision of the United States. 
     The audits shall be conducted at the place or places where 
     the accounts of the Corporation are normally kept. All books, 
     accounts, financial records, reports, files, and all other 
     papers, things, or property belonging to or in use by the 
     Corporation and necessary to facilitate the audit shall be 
     made available to the person or persons conducting the 
     audits, and full facilities for verifying transactions with 
     the balances or securities held by depositories, fiscal 
     agents, and custodians shall be afforded to such person or 
     persons.
       (ii) Reporting requirements.--The report of each annual 
     audit described in clause (i) shall be included in the annual 
     report required by subsection (c)(8).
       (B) Record keeping requirements.--The Corporation shall 
     ensure that each recipient of assistance from the Corporation 
     keeps--
       (i) separate accounts with respect to such assistance,
       (ii) such records as may be reasonably necessary to fully 
     disclose--

       (I) the amount and the disposition by such recipient of the 
     proceeds of such assistance,
       (II) the total cost of the project or undertaking in 
     connection with which such assistance is given or used, and 
     the extent to which such costs are for a qualified project, 
     and
       (III) the amount and nature of that portion of the cost of 
     the project or undertaking supplied by other sources, and

       (iii) such other records as will facilitate an effective 
     audit.
       (C) Audit and examination of books.--The Corporation shall 
     ensure that the Corporation, or any of the Corporation's duly 
     authorized representatives, shall have access for the purpose 
     of audit and examination to any books, documents, papers, and 
     records of any recipient of assistance from the Corporation 
     that are pertinent to such assistance.
       (f) Exemption From Taxes.--
       (1) In general.--The Corporation, including its franchise, 
     capital, reserves, surplus, sinking funds, mortgages or other 
     security holdings, and income, shall be exempt from all 
     taxation now or hereafter imposed by the United States, by 
     any territory, dependency, or possession thereof, or by any 
     State, county, municipality, or local taxing authority, 
     except that any real property of the Corporation shall be 
     subject to State, territorial, county, municipal, or local 
     taxation to the same extent according to its value as other 
     real property is taxed.
       (2) Financial obligations.--Build America bonds or other 
     obligations issued by the Corporation and the interest on or 
     tax credits with respect to its bonds or other obligations 
     shall not be subject to taxation by any State, county, 
     municipality, or local taxing authority.
       (g) Assistance for Transportation Purposes.--
       (1) In general.--In order to carry out the corporate 
     functions described in subsection (c), the Corporation shall 
     be eligible to receive discretionary grants, contracts, 
     gifts, contributions, or technical assistance from any 
     Federal department or agency, to the extent permitted by law.
       (2) Agreement.--In order to receive any assistance 
     described in this subsection, the Corporation shall enter 
     into an agreement with the Federal department or agency 
     providing such assistance, under which the Corporation 
     agrees--
       (A) to use such assistance to provide funding and technical 
     assistance only for activities which the Board of Directors 
     of the Corporation determines are consistent with the 
     corporate functions described in subsection (c), and
       (B) to review the activities of State transportation 
     agencies and other entities receiving assistance from the 
     Corporation to assure that the corporate functions described 
     in subsection (c) are carried out.
       (3) Construction.--Nothing in this section shall be 
     construed to establish the Corporation as a department, 
     agency, or instrumentality of the United States Government, 
     or to establish the members of the Board of Directors of the 
     Corporation, or the officers and employees of the 
     Corporation, as officers or employees of the United States 
     Government.
       (h) Management of Corporation.--
       (1) Board of directors; membership; designation of 
     chairperson and vice chairperson; appointment considerations; 
     term; vacancies.--
       (A) Board of directors.--The management of the Corporation 
     shall be vested in a board of directors composed of 15 
     members appointed by the President, by and with the advice 
     and consent of the Senate.
       (B) Chairperson and vice chairperson.--The President shall 
     designate 1 member of the Board to serve as Chairperson of 
     the Board and 1 member to serve as Vice Chairperson of the 
     Board.
       (C) Individuals from private life.--Eleven members of the 
     Board shall be appointed from private life.
       (D) Federal officers and employees.--Four members of the 
     Board shall be appointed from among officers and employees of 
     agencies of the United States concerned with infrastructure 
     development.
       (E) Appointment considerations.--All members of the Board 
     shall be appointed on the basis of their understanding of and 
     sensitivity to infrastructure development processes. Members 
     of the Board shall be appointed so that not more than 8 
     members of the Board are members of any 1 political party.
       (F) Terms.--Members of the Board shall be appointed for 
     terms of 3 years, except that of the members first appointed, 
     as designated by the President at the time of their 
     appointment, 5 shall be appointed for terms of 1 year and 5 
     shall be appointed for terms of 2 years.
       (G) Vacancies.--A member of the Board appointed to fill a 
     vacancy occurring before the expiration of the term for which 
     that member's predecessor was appointed shall be appointed 
     only for the remainder of that term. Upon the expiration of a 
     member's term, the member shall continue to serve until a 
     successor is appointed and is qualified.
       (2) Compensation, actual, necessary, and transportation 
     expenses.--Members of the Board shall serve without 
     additional compensation, but may be reimbursed for actual and 
     necessary expenses not exceeding $100 per day, and for 
     transportation expenses, while engaged in their duties on 
     behalf of the Corporation.
       (3) Quorum.--A majority of the Board shall constitute a 
     quorum.
       (4) President of corporation.--The Board of Directors shall 
     appoint a president of the Corporation on such terms as the 
     Board may determine.
                                 ______
                                 
  SA 2341. Mr. TALENT (for himself, and Mr. Wyden) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 1005, line 22, strike all through page 
     1020, line 9, and insert the following:

     SEC. 4602. ESTABLISHMENT OF BUILD AMERICA CORPORATION.

       There is established a nonprofit corporation, to be known 
     as the ``Build America Corporation''. The Build America 
     Corporation is not an agency or establishment of the United 
     States Government. The purpose of the Corporation is to 
     support qualified projects described in section 4603(c)(2) 
     through the issuance of Build America bonds. The Corporation 
     shall be subject, to the extent consistent with this section, 
     to the laws of the State of Delaware applicable to 
     corporations not for profit.

     SEC. 4603. FEDERAL BONDS FOR TRANSPORTATION INFRASTRUCTURE.

       (a) Use of Bond Proceeds.--The proceeds from the sale of--
       (1) any bonds authorized, issued, or guaranteed by the 
     Federal Government that are available to fund passenger rail 
     projects pursuant to any Federal law (enacted before, on, or 
     after the date of the enactment of this Act), and
       (2) any Build America bonds issued by the Build America 
     Corporation as authorized by section 4602,
     may be used to fund a qualified project if the Secretary of 
     Transportation determines that the qualified project is a 
     more cost-effective alternative for efficiently maximizing 
     mobility of individuals and goods than a passenger rail 
     project.
       (b) Compliance of Beneficiaries With Certain Standards.--A 
     recipient of proceeds of a grant, loan, Federal tax-credit 
     bonds, or any other form of financial assistance provided 
     under this title shall comply with the standards described in 
     section 24312 of title 49, United States Code, as in effect 
     on June 25, 2003, with respect to any qualified project 
     described in subsection (c)(1) in the same manner that the 
     National Passenger Railroad Corporation is required to comply 
     with such standards for construction work financed under an 
     agreement entered into under section 24308(a) of such title.
       (c) Qualified Project Defined.--In this section--
       (1) In general.--Except as provided in paragraph (2), the 
     term ``qualified project'' means any transportation 
     infrastructure project of any governmental unit or other 
     person that is proposed by a State, including a highway 
     project, a transit system project, a railroad project, an 
     airport project, a port project, and an inland waterways 
     project.

[[Page S1080]]

       (2) Build america corporation projects.--
       (A) In general.--With respect to any Build America bonds 
     issued by the Build America Corporation as authorized by 
     section 4602, the term ``qualified project'' means any--
       (i) qualified highway project,
       (ii) qualified public transportation project, and
       (iii) congestion relief project,
     proposed by 1 or more States and approved by the Build 
     America Corporation, which meets the requirements under 
     clauses (i), (ii), and (iii) of subparagraph (D).
       (B) Qualified highway project.--The term ``qualified 
     highway project'' means a project for highway facilities or 
     other facilities which are eligible for assistance under 
     title 23, United States Code.
       (C) Qualified public transportation project.--The term 
     ``qualified public transportation project'' means a project 
     for public transportation facilities or other facilities 
     which are eligible for assistance under chapter 53 of title 
     49, United States Code.
       (D) Congestion relief project.--The term ``congestion 
     relief project'' means an intermodal freight transfer 
     facility, freight rail facility, freight movement corridor, 
     intercity passenger rail or facility, intercity bus vehicle 
     or facility, border crossing facility, or other public or 
     private facility approved as a congestion relief project by 
     the Secretary of Transportation. In making such approvals, 
     the Secretary of Transportation shall--
       (i) consider the economic, environmental, mobility, and 
     national security improvements to be realized through the 
     project, and
       (ii) give preference to projects with national or regional 
     significance, including any projects sponsored by a coalition 
     of States or a combination of States and private sector 
     entities, in terms of generating economic benefits, 
     supporting international commerce, or otherwise enhancing the 
     national transportation system.
       (D) Additional requirements for qualified projects.--For 
     purposes of subparagraph (A)--
       (i) Costs of qualified projects.--The requirement of this 
     clause is met if the costs of the qualified project funded by 
     Build America bonds only relate to capital investments in 
     depreciable assets and do not include any costs relating to 
     operations, maintenance, or rolling stock.
       (ii) Applicability of federal law.--The requirement of this 
     clause is met if the requirements of any Federal law, 
     including titles 23, 40, and 49 of the United States Code, 
     which would otherwise apply to projects to which the United 
     States is a party or to funds made available under such law 
     and projects assisted with those funds are applied to--

       (I) funds made available under Build America bonds for 
     similar qualified projects, and
       (II) similar qualified projects assisted by the Build 
     America Corporation through the use of such funds.

       (iii) Utilization of updated construction technology for 
     qualified projects.--The requirement of this clause is met if 
     the appropriate State agency relating to the qualified 
     project has updated its accepted construction technologies to 
     match a list prescribed by the Secretary of Transportation 
     and in effect on the date of the approval of the project as a 
     qualified project.

                  Part 2--Railroad Track Modernization

     SEC. 4631. SHORT TITLE.

       This part may be cited as the ``Railroad Track 
     Modernization Act of 2004''.

     SEC. 4632. CAPITAL GRANTS FOR RAILROAD TRACK.

       (a) Authority.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroad track (including 
     roadbed, bridges, and related track structures) of class II 
     and class III railroads. Such grants shall be for 
     rehabilitating, preserving, or improving track used primarily 
     for freight transportation to a standard ensuring that the 
     track can be operated safely and efficiently, including 
     grants for rehabilitating, preserving, or improving track to 
     handle 286,000 pound rail cars. Grants may be provided under 
     this chapter--
       ``(A) directly to the class II or class III railroad; or
       ``(B) with the concurrence of the class II or class III 
     railroad, to a State or local government.
       ``(2) State cooperation.--Class II and class III railroad 
     applicants for a grant under this chapter are encouraged to 
     utilize the expertise and assistance of State transportation 
     agencies in applying for and administering such grants. State 
     transportation agencies are encouraged to provide such 
     expertise and assistance to such railroads.
       ``(3) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant to a railroad on 
     reasonable assurances by the railroad that the facilities to 
     be rehabilitated and improved will be economically and 
     efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services by the 
     railroad to which the grant is to be awarded;
       ``(iii) ensure that consideration is given to projects that 
     are part of a State-sponsored rail plan; and
       ``(iv) ensure that all such grants are awarded on a 
     competitive basis.
       ``(b) Maximum Federal Share.--The maximum Federal share for 
     carrying out a project under this section shall be 80 percent 
     of the project cost. The non-Federal share may be provided by 
     any non-Federal source in cash, equipment, or supplies. Other 
     in-kind contributions may be approved by the Secretary on a 
     case by case basis consistent with this chapter.
       ``(c) Project Eligibility.--For a project to be eligible 
     for assistance under this section the track must have been 
     operated or owned by a class II or class III railroad as of 
     the date of the enactment of the Railroad Track Modernization 
     Act of 2004.
       ``(d) Use of Funds.--Grants provided under this section 
     shall be used to implement track capital projects as soon as 
     possible. In no event shall grant funds be contractually 
     obligated for a project later than the end of the third 
     Federal fiscal year following the year in which the grant was 
     awarded. Any funds not so obligated by the end of such fiscal 
     year shall be returned to the Secretary for reallocation.
       ``(e) Additional Purpose.--In addition to making grants for 
     projects as provided in subsection (a), the Secretary may 
     also make grants to supplement direct loans or loan 
     guarantees made under title V of the Railroad Revitalization 
     and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)), for 
     projects described in the last sentence of section 502(d) of 
     such title. Grants made under this subsection may be used, in 
     whole or in part, for paying credit risk premiums, lowering 
     rates of interest, or providing for a holiday on principal 
     payments.
       ``(f) Employee Protection.--The Secretary shall require as 
     a condition of any grant made under this section that the 
     recipient railroad provide a fair arrangement at least as 
     protective of the interests of employees who are affected by 
     the project to be funded with the grant as the terms imposed 
     under section 11326(a), as in effect on the date of the 
     enactment of the Railroad Track Modernization Act of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

``223. CAPITAL GRANTS FOR RAILROAD TRACK.......................22301''.

     SEC. 4633. REGULATIONS.

       (a) Regulations.--The Secretary of Transporation shall 
     prescribe under subsection (a)(3) of section 22301 of title 
     49, United States Code (as added by section 4601), interim 
     and final regulations for the administration of the grant 
     program under such section as follows:
       (1) Interim regulations.--The Secretary shall prescribe the 
     interim regulations to implement the program not later than 
     December 31, 2003.
       (2) Final regulations.--The Secretary shall prescribe the 
     final regulations not later than October 1, 2004.
       (b) Inapplicability of Rulemaking Procedure to Interim 
     Regulations.--Subchapter II of chapter 5 of title 5, United 
     States Code, shall not apply to the issuance of an interim 
     regulation or to any amendment of such an interim regulation.
       (c) Criteria.--The requirement for the establishment of 
     criteria under subparagraph (B) of section 22301(a)(3) of 
     title 49, United States Code, applies to the interim 
     regulations as well as to the final regulations.

     SEC. 4634. STUDY OF GRANT-FUNDED PROJECTS.

       (a) Requirement for Study.--The Secretary of Transportation 
     shall conduct a study of the projects carried out with grant 
     assistance under section 22301 of title 49, United States 
     Code (as added by section 4601), to determine the public 
     interest benefits associated with the light density railroad 
     networks in the States and their contribution to a multimodal 
     transportation system.
       (b) Report.--Not later than March 31, 2004, the Secretary 
     shall submit to Congress a report on the results of the study 
     under subsection (a). The report shall include any 
     recommendations that the Secretary considers appropriate 
     regarding the eligibility of light density rail networks for 
     Federal infrastructure financing.

[[Page S1081]]

     SEC. 4635. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Transportation $350,000,000 for each of fiscal years 2004, 
     2005, and 2006 for carrying out section 22301 of title 49, 
     United States Code (as added by section 4601).

          Part 3--Other Rail Transportation-related Provisions

     SEC. 4661. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS.

       (a) Establishment of Program.--
       (1) Program requirements.--Chapter 201 of title 49, United 
     States Code, is amended by adding at the end of subchapter II 
     the following:

     ``Sec. 20154. Capital grants for rail line relocation 
       projects

       ``(a) Establishment of Program.--The Secretary of 
     Transportation shall carry out a grant program to provide 
     financial assistance for local rail line relocation projects.
       ``(b) Eligibility.--A State is eligible for a grant under 
     this section for any project for the improvement of the route 
     or structure of a rail line passing through a municipality of 
     the State that--
       ``(1) is carried out for the purpose of mitigating the 
     adverse effects of rail traffic on safety, motor vehicle 
     traffic flow, or economic development in the municipality;
       ``(2) involves a lateral or vertical relocation of any 
     portion of the rail line within the municipality to avoid a 
     closing of a grade crossing or the construction of a road 
     underpass or overpass; and
       ``(3) meets the costs-benefits requirement set forth in 
     subsection (c).
       ``(c) Costs-Benefits Requirement.--A grant may be awarded 
     under this section for a project for the relocation of a rail 
     line only if the benefits of the project for the period equal 
     to the estimated economic life of the relocated rail line 
     exceed the costs of the project for that period, as 
     determined by the Secretary considering the following 
     factors:
       ``(1) The effects of the rail line and the rail traffic on 
     motor vehicle and pedestrian traffic, safety, and area 
     commerce if the rail line were not so relocated.
       ``(2) The effects of the rail line, relocated as proposed, 
     on motor vehicle and pedestrian traffic, safety, and area 
     commerce.
       ``(3) The effects of the rail line, relocated as proposed, 
     on the freight and passenger rail operations on the rail 
     line.
       ``(d) Considerations for Approval of Grant Applications.--
     In addition to considering the relationship of benefits to 
     costs in determining whether to award a grant to an eligible 
     State under this section, the Secretary shall consider the 
     following factors:
       ``(1) The capability of the State to fund the rail line 
     relocation project without Federal grant funding.
       ``(2) The requirement and limitation relating to allocation 
     of grant funds provided in subsection (e).
       ``(3) Equitable treatment of the various regions of the 
     United States.
       ``(e) Allocation Requirements.--
       ``(1) Grants not greater than $20,000,000.--At least 50 
     percent of all grant funds awarded under this section out of 
     funds appropriated for a fiscal year shall be provided as 
     grant awards of not more than $20,000,000 each.
       ``(2) Limitation per project.--Not more than 25 percent of 
     the total amount available for carrying out this section for 
     a fiscal year may be provided for any 1 project in that 
     fiscal year.
       ``(f) Federal Share.--The total amount of a grant awarded 
     under this section for a rail line relocation project shall 
     be 90 percent of the shared costs of the project, as 
     determined under subsection (g)(4).
       ``(g) State Share.--
       ``(1) Percentage.--A State shall pay 10 percent of the 
     shared costs of a project that is funded in part by a grant 
     awarded under this section.
       ``(2) Forms of contributions.--The share required by 
     paragraph (1) may be paid in cash or in kind.
       ``(3) In-kind contributions.--The in-kind contributions 
     that are permitted to be counted under paragraph (2) for a 
     project for a State are as follows:
       ``(A) A contribution of real property or tangible personal 
     property (whether provided by the State or a person for the 
     State).
       ``(B) A contribution of the services of employees of the 
     State, calculated on the basis of costs incurred by the State 
     for the pay and benefits of the employees, but excluding 
     overhead and general administrative costs.
       ``(C) A payment of any costs that were incurred for the 
     project before the filing of an application for a grant for 
     the project under this section, and any in-kind contributions 
     that were made for the project before the filing of the 
     application, if and to the extent that the costs were 
     incurred or in-kind contributions were made, as the case may 
     be, to comply with a provision of a statute required to be 
     satisfied in order to carry out the project.
       ``(4) Costs not shared.--
       ``(A) In general.--For the purposes of subsection (f) and 
     this subsection, the shared costs of a project in a 
     municipality do not include any cost that is defrayed with 
     any funds or in-kind contribution that a source other than 
     the municipality makes available for the use of the 
     municipality without imposing at least 1 of the following 
     conditions:
       ``(i) The condition that the municipality use the funds or 
     contribution only for the project.
       ``(ii) The condition that the availability of the funds or 
     contribution to the municipality is contingent on the 
     execution of the project.
       ``(B) Determinations of the secretary.--The Secretary shall 
     determine the amount of the costs, if any, that are not 
     shared costs under this paragraph and the total amount of the 
     shared costs. A determination of the Secretary shall be 
     final.
       ``(h) Multistate Agreements To Combine Amounts.--Two or 
     more States (not including political subdivisions of States) 
     may, pursuant to an agreement entered into by the States, 
     combine any part of the amounts provided through grants for a 
     project under this section if--
       ``(1) the project will benefit each of the States entering 
     into the agreement; and
       ``(2) the agreement is not a violation of a law of any such 
     State.
       ``(i) Regulations.--The Secretary shall prescribe 
     regulations for carrying out this section.
       ``(j) State Defined.--In this section, the term `State' 
     includes, except as otherwise specifically provided, a 
     political subdivision of a State.
       ``(k) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary for use in 
     carrying out this section $350,000,000 for each of the fiscal 
     years 2004 through 2008.''.
       (2) Clerical amendment.--The chapter analysis for such 
     chapter is amended by adding at the end the following:

``20154. Capital grants for rail line relocation projects.''.

       (b) Regulations.--
       (1) Interim regulations.--Not later than October 1, 2003, 
     the Secretary of Transportation shall issue temporary 
     regulations to implement the grant program under section 
     20154 of title 49, United States Code, as added by subsection 
     (a). Subchapter II of chapter 5 of title 5, United States 
     Code, shall not apply to the issuance of a temporary 
     regulation under this subsection or of any amendment of such 
     a temporary regulation.
       (2) Final regulations.--Not later than April 1, 2004, the 
     Secretary shall issue final regulations implementing the 
     program.
                                 ______
                                 
  SA 2342. Mr. TALENT (for himself, Mr. Allen, and Mr. Burns) submitted 
an amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 908, after line 23, add the following:

     SEC. 4304A. DEFINITION OF INDIVIDUAL SHIPPER.

       Section 13102 is amended--
       (1) by redesignating paragraphs (12) through (24) as 
     paragraphs (13) through (25), respectively; and
       (2) by inserting after paragraph (11) the following new 
     paragraph (12):
       ``(12) Individual shipper.--The term `individual shipper' 
     means any person who is the shipper consignor or consignee of 
     a household goods shipment, that is identified as either the 
     shipper, consignor, or consignee on the face of the bill of 
     lading, who owns the goods being or to be transported, and 
     who pays his or her own tariff transportation charges. The 
     term applies only to Cash-On-Deliver shippers of household 
     goods.''.
       On page 910, strike lines 3 through 13 and insert the 
     following:
       ``(C) Additional transportation services.--
       ``(i) In general.--Clauses (i) and (ii) of subparagraph (A) 
     shall not apply to tariff transportation charges for 
     transportation services made necessary by impracticable 
     operations, as defined in the applicable carrier tariff, or 
     for additional services requested by the shipper that are not 
     included in the estimate.
       ``(ii) Responsibility for payment.--A shipper shall be 
     responsible to pay a carrier for charges described in clause 
     (i), in full either by cash or certified funds, before the 
     carrier shall be required to relinquish possession of the 
     household goods shipment.
       ``(iii) Payment by credit card.--Notwithstanding clause 
     (ii) or any payment arrangement between a shipper and a 
     carrier before the date of the delivery of a household goods 
     shipment, a shipper shall, upon pre-approval from a 
     recognized credit institution, be allowed to pay by credit 
     card for tariff transportation charges described in clause 
     (i).
       ``(D) Failure to make payment.--
       ``(i) In general.--If a shipper is not able to pay tariff 
     transportation charges described in subparagraph (C)(i) in 
     full before the carrier shall be required to relinquish 
     possession of the household goods shipment, the carrier may 
     relinquish possession of the household goods shipment for 
     payment of an amount equal to 100 percent of the binding 
     estimated charges or 110 percent of the non-binding estimated 
     charges.
       ``(ii) Continuing refusal.--If a shipper refuses to pay the 
     balance of the tariff transportation charges described in 
     subparagraph (C)(i), or the additional charges that exceed 
     the estimated charges provided for under clauses (i) and (ii) 
     of subparagraph (A), under this subparagraph within 30 days 
     of the date of delivery of the household goods shipment, the 
     carrier is required to institute litigation to collect such 
     charges, and the carrier is successful in such litigation, 
     the shipper shall be liable to the carrier for its reasonable 
     attorney fees in such litigation. If the

[[Page S1082]]

     carrier is not successful in such litigation, the carrier 
     shall be responsible for the reasonable attorney fees of the 
     shipper in such litigation.''.
       On page 911, beginning on line 16, strike ``. Before the 
     execution'' and all that follows through ``provide the 
     shipper'' and insert ``and''.
       On page 912, line 1, strike ``The written'' and insert 
     ``Unless waived in writing by the shipper, the written''.
       On page 912, beginning on line 4, strike ``of the 
     location'' and all that follows through ``preparing the 
     estimate.'' and insert ``, or within a one-hour driving 
     radius, whichever is less, of the location of the carrier's 
     disclosed household goods agent preparing the estimate.''.
       On page 912, line 11, strike ``(e)'' and insert ``(d)''.
       On page 912, strike line 14 and all that follows through 
     page 913, line 3.
       On page 913, line 4, strike ``(d)'' and insert ``(c)''.
       On page 915, strike lines 5 through 9 and insert the 
     following:
       (2) by striking ``shippers of household goods concerning 
     damage or loss to the household goods transported.'' and 
     inserting ``individual shippers of household goods concerning 
     damage or loss to the household goods transported, concerning 
     disputes over tariff transportation charges, or concerning 
     the delay of delivery of the household goods transported.''; 
     and
       On page 915, strike line 21 and all that follows through 
     page 916, line 21.
       On page 916, line 22, strike ``(c)'' and insert ``(b)''.
       On page 917, line 20, strike ``(d)'' and insert ``(c)''.
       On page 920, strike line 3 and all that follows through 
     page 923, in the matter following line 14, and insert the 
     following:

     ``Sec. 14710. Enforcement of Federal regulations by State 
       attorneys general

       ``(a) In General.--A State, as parens patriae, may bring a 
     civil action on behalf of its residents in an appropriate 
     district court of the United States--
       ``(1) to enforce a regulation or order of the Secretary or 
     Board protecting an individual shipper of household goods, 
     but only if such regulation or order governs the delivery of 
     such household goods; or
       ``(2) to impose civil penalties authorized by section 14915 
     of this title whenever the attorney general of the State has 
     reason to believe that the interests of its residents have 
     been or are being threatened or adversely affected by--
       ``(A) a carrier or broker providing transportation of 
     household goods subject to jurisdiction under subchapter I or 
     III of chapter 135 of this title by a pattern of violations 
     of section 14915 of this title; or
       ``(B) a foreign motor carrier providing transportation 
     registered under section 13902 of this title that is engaged 
     in household goods transportation on behalf of individuals by 
     a pattern of violations of section 14915 of this title.
       ``(b) Exception.--A State, as parens patriae, may not 
     initiate a class civil action on behalf of its residents to 
     enforce a regulation or order of the Secretary or the Board.
       ``(c) Enforcement of State Law.--Nothing in this section 
     shall prohibit an authorized State official from proceeding 
     in State court to enforce a criminal statute of such 
     State.''.
       (2) Conforming amendment.--The analysis for chapter 147 is 
     amended by inserting after the item relating to section 14709 
     the following new item:
``14710. Enforcement of Federal regulations by State attorneys 
              general.''.
       On page 923, beginning on line 23, strike ``and Federal and 
     local law enforcement officials'' and insert ``Federal and 
     local law enforcement officials, and industries involved in 
     the transportation of household goods''.
       On page 924, strike lines 7 through 9 and insert ``the 
     working group shall consult with the public and other 
     interested parties.''.
       On page 925, strike line 18 and all that follows through 
     page 927, line 20, and insert the following:
       ``The Secretary shall--
       ``(1) establish a system to file and log complaints made by 
     shippers that relate to motor carrier transportation of 
     household goods;
       ``(2) establish a database of such complaints; and
       ``(3) develop procedures--
       ``(A) to forward such a complaint to the motor carrier 
     named in such complaint;
       ``(B) to permit motor carriers to challenge information in 
     the database; and
       ``(C) to provide, for each motor carrier named in 
     complaints in the database, the percentage of such complaints 
     disputed by such motor carrier.''.
       On page 928, line 15, insert ``and'' after the semicolon.
       On page 928, strike lines 19 through 21 and insert the 
     following:
     goods.
                                 ______
                                 
  SA 2343. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1310, after line 4, insert the following:

                TITLE VII--BUY AMERICAN ACT IMPROVEMENTS

     SEC. 7001. SHORT TITLE.

       This title may be cited as the ``Buy American Improvement 
     Act of 2003''.

     SEC. 7002. REQUIREMENTS FOR WAIVERS.

       (a) In General.--Section 2 of the Buy American Act (41 
     U.S.C. 10a) is amended--
       (1) by striking ``Notwithstanding'' and inserting the 
     following:
        ``(a) In General.--Notwithstanding''; and
       (2) by adding at the end the following:
       ``(b) Special Rules.--The following rules shall apply in 
     carrying out the provisions of subsection (a):
       ``(1) Public interest waiver.--A determination that it is 
     not in the public interest to enter into a contract in 
     accordance with this Act may not be made after a notice of 
     solicitation of offers for the contract is published in 
     accordance with section 18 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 416) and section 8(e) of 
     the Small Business Act (15 U.S.C. 637(e)).
       ``(2) Domestic bidder.--A Federal agency entering into a 
     contract shall give preference to a company submitting an 
     offer on the contract that manufactures in the United States 
     the article, material, or supply for which the offer is 
     solicited, if--
       ``(A) that company's offer is substantially the same as an 
     offer made by a company that does not manufacture the 
     article, material, or supply in the United States; or
       ``(B) that company is the only company that manufactures in 
     the United States the article, material, or supply for which 
     the offer is solicited.
       ``(3) Use outside the united states.--
       ``(A) In general.--Subsection (a) shall apply without 
     regard to whether the articles, materials, or supplies to be 
     acquired are for use outside the United States if the 
     articles, materials, or supplies are not needed on an urgent 
     basis or if they are acquired on a regular basis.
       ``(B) Cost analysis.--In any case where the articles, 
     materials, or supplies are to be acquired for use outside the 
     United States and are not needed on an urgent basis, before 
     entering into a contract an analysis shall be made of the 
     difference in the cost for acquiring the articles, materials, 
     or supplies from a company manufacturing the articles, 
     materials, or supplies in the United States (including the 
     cost of shipping) and the cost for acquiring the articles, 
     materials, or supplies from a company manufacturing the 
     articles, materials, or supplies outside the United States 
     (including the cost of shipping).
       ``(4) Domestic availability.--The head of a Federal agency 
     may not make a determination under subsection (a) that an 
     article, material, or supply is not mined, produced, or 
     manufactured, as the case may be, in the United States in 
     sufficient and reasonably available commercial quantities and 
     of satisfactory quality, unless the head of the agency has 
     conducted a study and, on the basis of such study, determined 
     that--
       ``(A) domestic production cannot be initiated to meet the 
     procurement needs; and
       ``(B) a comparable article, material, or supply is not 
     available from a company in the United States.
       ``(c) Reports.--
       ``(1) In general.--Not later than 60 days after the end of 
     each fiscal year, the head of each Federal agency shall 
     submit to Congress a report on the acquisitions that were 
     made of articles, materials, or supplies by the agency in 
     that fiscal year from entities that manufacture the articles, 
     materials, or supplies outside the United States.
       ``(2) Content of report.--The report for a fiscal year 
     under paragraph (1) shall separately indicate the following 
     information:
       ``(A) The dollar value of any articles, materials, or 
     supplies that were manufactured outside the United States.
       ``(B) An itemized list of all waivers granted with respect 
     to such articles, materials, or supplies under this Act.
       ``(C) A summary of--
       ``(i) the total procurement funds expended on articles, 
     materials, and supplies manufactured inside the United 
     States; and
       ``(ii) the total procurement funds expended on articles, 
     materials, and supplies manufactured outside the United 
     States.
       ``(3) Public availability.--The head of each Federal agency 
     submitting a report under paragraph (1) shall make the report 
     publicly available by posting on an Internet website.''.
       (b) Definitions.--Section 1 of the Buy American Act (41 
     U.S.C. 10c) is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Federal Agency.--The term `Federal agency' means any 
     executive agency (as defined in section 4(1) of the Federal 
     Procurement Policy Act (41 U.S.C. 403(1))) or any 
     establishment in the legislative or judicial branch of the 
     Government.''.
       (c) Conforming Amendments.--
       (1) Section 2 of the Buy American Act (41 U.S.C. 10a) is 
     amended by striking ``department or independent 
     establishment'' and inserting ``Federal agency''.
       (2) Section 3 of such Act (41 U.S.C. 10b) is amended--
       (A) by striking ``department or independent establishment'' 
     in subsection (a), and inserting ``Federal agency''; and
       (B) by striking ``department, bureau, agency, or 
     independent establishment'' in subsection (b) and inserting 
     ``Federal agency''.
       (3) Section 633 of the National Military Establishment 
     Appropriations Act, 1950 (41

[[Page S1083]]

     U.S.C. 10d) is amended by striking ``department or 
     independent establishment'' and inserting ``Federal agency''.

     SEC. 7003. GAO REPORT AND RECOMMENDATIONS.

       (a) Requirement for Report.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall report to Congress recommendations for 
     determining, for purposes of applying the waiver provision of 
     section 2(a) of the Buy American Act--
       (A) unreasonable cost; and
       (B) inconsistent with the public interest.
       (2) Report to include recommended definitions.--The report 
     shall include recommendations for a statutory definition of 
     unreasonable cost and standards for determining inconsistency 
     with the public interest.
       (b) Waiver Procedures.--The report described in subsection 
     (a) shall also include recommendations for establishing 
     procedures for applying the waiver provisions of the Buy 
     American Act that can be consistently applied.

     SEC. 7004. DUAL-USE TECHNOLOGIES.

       The head of a Federal agency (as defined in section 1(c) of 
     the Buy American Act (as amended by section 7002)) may not 
     enter into a contract, nor permit a subcontract under a 
     contract of the Federal agency, with a foreign entity that 
     involves giving the foreign entity plans, manuals, or other 
     information that would facilitate the manufacture of a dual-
     use item on the Commerce Control List unless approval for 
     providing such plans, manuals, or information has been 
     obtained in accordance with the provisions of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) and 
     the Export Administration Regulations (15 C.F.R. part 730 et 
     seq.).
                                 ______
                                 
  SA 2344. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 1815. RURAL ROAD SAFETY PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1814(a)), is 
     amended by adding at the end the following:

     ``Sec. 176. Rural road safety program

       ``(a) Findings.--Congress finds that it is in the vital 
     interest of the Nation that a rural road safety program be 
     established to ensure that the safety of the traveling public 
     is enhanced on rural two-lane highways.
       ``(b) Establishment.--The Secretary shall establish and 
     implement a rural road safety program in accordance with this 
     section.
       ``(c) Apportionments.--
       ``(1) In general.--On October 1 of each fiscal year, the 
     Secretary shall apportion to each State to carry out this 
     section an amount in the ratio of the percentage of the 
     centerline mileage of two-lane roads in rural areas 
     functionally classified as minor and major collectors and 
     arterials in each State bears to the total centerline mileage 
     of two-lane roads in rural areas functionally classified as 
     minor and major collectors and arterials in all the States.
       ``(2) Allocation of apportioned funds.--Within each State, 
     funds for the rural road safety program for each fiscal year 
     shall be allocated among State, county, city, and other 
     levels of government commensurate with each entity's 
     ownership ratio of eligible two-lane road mileage of two-lane 
     roads in rural areas functionally classified as minor and 
     major collectors and arterials.
       ``(d) Location of Projects.--Funds authorized to carry out 
     this section shall be available for expenditure only for 
     activities described in subsection (g).
       ``(e) Obligation of Funds.--Funds authorized to be 
     appropriated to carry out this section shall be available for 
     obligation in the same manner and the same extent as if such 
     funds were apportioned under section 104(b) of title 23, 
     United States Code, except that the Secretary is authorized 
     to waive provisions that the Secretary considers inconsistent 
     with the purposes of this section.
       ``(f) Cost Sharing.--The Federal share of a project under 
     this section shall be 80 percent of the total cost for such 
     project.
       ``(g) Transferability.--Notwithstanding any other provision 
     of law no portion of a State's apportionment allocated for 
     the rural road safety program may be transferred to any other 
     apportionment of the State for such fiscal year.
       ``(h) Use of Funds.--A State that receives an apportionment 
     under this section may use funds--
       ``(1) to improve horizontal and vertical alignment;
       ``(2) to eliminate wheel lane rutting, increase skid 
     resistance, and smooth roadways;
       ``(3) to improve sight distances;
       ``(4) to widen lanes and shoulders;
       ``(5) to install dedicated turn lanes;
       ``(6) to install and upgrade guardrails, traffic barriers, 
     crash cushions, protective devices, and rumblestrips;
       ``(7) to install traffic and safety lights, improve signage 
     and pavement markings; and
       ``(8) to implement other safety activities designated by 
     the Secretary.
       ``(i) Program.--Not later than 180 days after the date of 
     enactment of this Act, each State that receives an 
     apportionment under this section shall conduct and 
     systematically maintain an engineering survey of all two-lane 
     rural roads classified as minor and major collectors and 
     minor arterials--
       ``(1) to identify dangerous locations, sections, and 
     elements, including roadside obstacles and unmarked or poorly 
     marked roads, which may constitute a danger to motorists, 
     bicyclists, pedestrians, impaired, and ``older'' drivers;
       ``(2) to assign priorities for the correction of such 
     locations, sections, and elements; and
       ``(3) establish and implement a schedule of projects for 
     improvement of such roads.
       ``(j) Evaluation.--
       ``(1) In general.--Each State shall establish an evaluation 
     process approved by the Secretary to analyze and assess 
     results achieved by safety improvement projects carried out 
     in accordance with the procedures and criteria established by 
     this section.
       ``(2) Priorities.--Such evaluation process shall develop 
     cost-benefit data for various types of corrections and 
     treatments, which shall be used in setting priorities for 
     safety improvement projects.
       ``(k) Reporting.--
       ``(1) In general.--Each State shall report to the Secretary 
     not later than December 30 of each year, regarding the 
     progress of implementing safety improvement projects for 
     danger elimination and the effectiveness of such 
     improvements.
       ``(2) State assessment.--Each State report shall contain an 
     assessment of the cost of, and safety benefits derived from, 
     the various means and methods used to mitigate or eliminate 
     dangers and the previous and subsequent accident experience 
     at dangerous locations.
       ``(3) Secretary's report.--The Secretary shall submit a 
     report to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives not later than 
     April 1 of each year regarding the progress of the States in 
     implementing the rural road safety program. The report 
     shall--
       ``(A) include the number of projects undertaken, their 
     distribution by cost range, road system, means and methods 
     used, the previous and subsequent accident experience at 
     improved locations and a cost-benefit analysis; and
       ``(B) analyze and evaluate each State's program, identify 
     any State found not to be in compliance with the schedule of 
     improvements required by subsection (a), and include 
     recommendations for future implementation of the rural road 
     safety program.
       ``(l) Definition of Rural Road.--In this section, the term 
     ``rural road'' means all roads in rural areas.
       ``(m) Authorization of Appropriations Rural Road Safety 
     Program.--To carry out the rural road safety program under 
     this section there are authorized to be appropriated 
     $1,000,000,000 for each of fiscal years 2004 through 2009.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter I of title 23, United States Code (as amended by 
     section 1814(c)), is amended by adding at the end the 
     following:

``176. Rural road safety program.''.
                                 ______
                                 
  SA 2345. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 16__. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND 
                   BIODIESEL PURCHASING REQUIREMENT.

       Title III of the Energy Policy Act of 1992 is amended by 
     striking section 306 (42 U.S.C. 13215) and inserting the 
     following:

     ``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND 
                   BIODIESEL PURCHASING REQUIREMENT.

       ``(a) Ethanol-Blended Gasoline.--The head of each Federal 
     agency shall ensure that, in areas in which ethanol-blended 
     gasoline is readily available at a generally competitive 
     price, the Federal agency purchases ethanol-blended gasoline 
     containing at least 10 percent ethanol rather than 
     nonethanol-blended gasoline, for use in vehicles used by the 
     agency.
       ``(b) Biodiesel.--
       ``(1) Definition of biodiesel.--In this subsection, the 
     term `biodiesel' has the meaning given the term in section 
     312(f).
       ``(2) Requirement.--The head of each Federal agency shall 
     ensure that the Federal agency purchases, for use in fueling 
     fleet vehicles that use diesel fuel used by the Federal 
     agency at the location at which fleet vehicles of the Federal 
     agency are centrally fueled, in areas in which the biodiesel-
     blended diesel fuel described in subparagraphs (A) and (B) is 
     available at a generally competitive price--
       ``(A) as of the date that is 5 years after the date of 
     enactment of this section, biodiesel-blended diesel fuel that 
     contains at least 2 percent biodiesel, rather than 
     nonbiodiesel-blended diesel fuel; and
       ``(B) as of the date that is 10 years after the date of 
     enactment of this section, biodiesel-blended diesel fuel that 
     contains at least 20 percent biodiesel, rather than 
     nonbiodiesel-blended diesel fuel, for use in vehicles used by 
     the agency.

[[Page S1084]]

       ``(3) Requirement of federal law.--This subsection does not 
     constitute a requirement of Federal law for the purposes of 
     section 312.
       ``(c) Exemption.--This section does not apply to fuel used 
     in vehicles described in subparagraphs (A) through (H) of 
     section 301(9).''.
                                 ______
                                 
  SA 2346. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1-7, between lines 17 and 18, insert the following:
       (17) Weather-related repair program.--For the weather-
     related repair program established under section 1204--
       (A) $1,000,000,000 for each of fiscal years 2004 through 
     2005; and
       (B) $1,500,000,000 for each of fiscal years 2006 through 
     2009.
       On page 2-19, after the matter following line 13, insert 
     the following:

     SEC. 1204. WEATHER-RELATED REPAIR PROGRAM.

       (a) Definitions.--In this section:
       (1) Cold state.--The term ``cold State'' means any State in 
     which the average temperature in the preceding year was below 
     the average temperature for all States in the preceding year.
       (2) Warm state.--The term ``warm State'' means any State in 
     which the average temperature in the preceding year was above 
     the average temperature for all States in the preceding year.
       (b) Establishment.--The Secretary shall establish a 
     weather-related repair program.
       (c) Eligible Projects.--A State may obligate funds 
     apportioned to the State under subsection (d) only for repair 
     projects for the National Highway System that will--
       (1) repair damage to pavement, bridges, or drainage systems 
     that would not have been damaged but for weather conditions; 
     and
       (2) construct replacement facilities--
       (A) to replace facilities that would other- wise have been 
     subject to continuous repair because of weather conditions; 
     and
       (B) that would be less costly to maintain than the 
     facilities being replaced because of the protection from 
     inclement weather provided by the replacement facilities.
       (c) Apportionment.--Of the amounts made available to carry 
     out this section--
       (1) at least 0.5 percent shall be set aside for warm 
     States; and
       (2) with respect to cold States--
       (A) 50 percent shall be allocated based on the ratio that--
       (i) the vehicle miles traveled on National Highway System 
     routes in the State; bears to
       (ii) the vehicle miles traveled on National Highway System 
     routes in all cold States;
       (B) 25 percent shall be allocated based on the ratio that--
       (i) the amount of precipitation in the cold State; bears to
       (ii) the precipitation in all cold States; and
       (C) 25 percent shall be allocated based on the ratio that--
       (i) the difference between the average temperature in the 
     cold State and the average temperature for all cold States; 
     bears to
       (ii) the average temperature for all cold States.
                                 ______
                                 
  SA 2347. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 841, strike line 19 and all that follows 
     through page 849, line 19, and insert the following:
       (a) Repeal.--Section 1216(b) of the Transportation Equity 
     Act for the 21st Century (23 U.S.C. 129 note; 112 Stat. 212) 
     is repealed.
       (b) Limitations on Tolling.--
       (1) In general.--Chapter 3 of title 23 is amended by 
     striking section 301 and inserting the following:

     ``Sec. 301. Limitations on tolling

       ``(a) In General.--Except as provided in subsection (b), 
     there shall be no limitations on the imposition and 
     collection of tolls with respect to highways constructed 
     under this title.
       ``(b) Exceptions.--Notwithstanding subsection (a)--
       ``(1) the Secretary--
       ``(A) shall approve or disapprove any proposal to toll 
     National Highway System roads that are not currently subject 
     to a toll; and
       ``(B) in deciding whether to approve such a proposal, shall 
     consider whether--
       ``(i) the proposed toll could negatively impact interstate 
     commerce; and
       ``(ii) the proposed toll is likely to reduce congestion;
       ``(2) any toll program must attempt to mitigate congestion; 
     and
       ``(3) any revenues from tolling shall be used to improve, 
     maintain, or construct surface transportation.''.
       (2) Conforming amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by striking the 
     matter relating to section 301 and inserting the following:

``301. Limitations on tolling.''.
                                 ______
                                 
  SA 2348. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table as follows:

       On page 690, between lines 9 and 10, insert the following:
       ``(J) a vital part of determining the future of the surface 
     transportation system in the United States is determining the 
     future financing of the system.''
       On page 694, on line 1, insert the following:
       (L) the future of financing the surface transportation 
     system in the United States and the Highway Trust Fund over 
     at least the next 30 years, including assessment of--
       (i) the advantages and disadvantages of alternative revenue 
     sources to meet anticipated Federal surface transportation 
     financial requirements;
       (ii) practicable recommendations for the most promising 
     revenues to support long-term Federal surface transportation 
     financing;
       (iii) the impact of other Federal policies on the funds 
     available for surface transportation;
       (iv) the barriers to transportation investment created by 
     the modal structure of transportation financing existing as 
     of the date of enactment of this Act; and
       (v) coordination of the Federal transportation program with 
     other Federal programs to maximize the use of all revenue 
     sources.
                                 ______
                                 
  SA 2349. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 693, between lines 16 and 17, insert the following:
       (J) the impacts of transportation investments on low-income 
     communities;
       On page 693, line 17, strike ``(J)'' and insert ``(K)''.
       On page 2-10, line 22, strike ``(K)'' and insert ``(L)''.
                                 ______
                                 
  SA 2350. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 765, line 19, strike ``and'' at the end.
       On page 765, strike line 22 and insert the following: 
     ``means, such as the World Wide Web; and
       ``(iv) develop a publicly available plan for involving 
     economically disadvantaged populations.''.
                                 ______
                                 
  SA 2351. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 971, line 13, strike ``Code--'' and insert ``Code, 
     and section 2105 of this Act--''.
       On page 1061, after line 15, add the following:

     SEC. 2104. TRANSPORTATION EQUITY COOPERATIVE RESEARCH 
                   PROGRAM.

       (a) In General.--The Secretary shall carry out a 
     transportation equity cooperative research program.
       (b) Eligibility.--To be eligible to receive a grant under 
     the program, a person shall be engaged in collaborative 
     research efforts with community-based organizations, which 
     may be based anywhere in the United States.
       (c) Research Activities.--The program shall include 
     research designed to--
       (1) improve analysis of the distribution of transportation 
     funding in the statewide and metropolitan transportation 
     planning process and the impact of funding decisions on low-
     income communities (including tribal and Alaska Native 
     communities), with a particular emphasis on health and 
     economic impacts;
       (2) improve the analysis of the distribution of 
     transportation funding in the statewide and metropolitan 
     transportation planning process and the impact of funding 
     decisions on transit-dependent populations in urban, 
     suburban, and rural communities;
       (3) better understand effective mechanisms for public 
     involvement, engagement, and control in the statewide, 
     metropolitan, and local transportation planning and project 
     delivery process;
       (4) develop indicators of economic, social, and 
     environmental performance of transportation systems, with an 
     emphasis on the needs of low-income communities (including 
     tribal and Alaska Native communities) and on the needs of 
     transit-dependent populations in urban and rural areas, to 
     facilitate the analysis of potential alternatives; and
       (5) meet additional priorities as determined by the 
     advisory board established under subsection (d).
       (d) Advisory Board.--

[[Page S1085]]

       (1) Establishment.--In consultation with the Secretary of 
     Health and Human Services, the Administrator of the 
     Environmental Protection Agency, and the heads of other 
     appropriate Federal agencies, the Secretary shall establish 
     an advisory board to--
       (A) recommend research under this section relating to 
     surface transportation and community impacts; and
       (B) advise, monitor, and coordinate research efforts 
     undertaken by recipients of grants under the program under 
     subsection (a).
       (2) Membership.--The advisory board shall include--
       (A) representatives of environmental, justice, civil 
     rights, and community-based organizations;
       (B) researchers in the field of transportation equity and 
     environmental justice; and
       (C) representatives of State transportation agencies, 
     metropolitan planning organizations, transit operating 
     agencies, and local government.
       (e) Number and Amount of Grants.--For each of fiscal years 
     2004, 2005, 2006, 2007, 2008 and 2009, the Secretary shall 
     make grants under the program of not more than $750,000 to 
     each of 4 research centers.
                                 ______
                                 
  SA 2352. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 976, strike lines 7 through 12 and insert the 
     following:

(6) Commercial vehicle intelligent transportation system infrastructure 
 program.--Of the amounts made available under subsection (a)(4), not 
     less than $40,000,000 for each of fiscal years 2004 and 2005, 
$45,000,000 for each of fiscal years 2006 and 2007, and $50,000,000 for 
  each of fiscal years 2008 and 2009 shall be available to carry out 
              section 527 of title 23, United States Code.

       On page 1079, line 18, insert ``permits'' after 
     ``information''.
       On page 1079, lines 25 and 26, insert ``, including the 
     exchange among the States of data that are not protected by 
     taxpayer policy and the interoperability of systems among the 
     States'' after ``development''.
       On page 1081, line 22, strike ``intrastate,''.
       On page 1081, line 23, strike ``requirements'' and insert 
     ``permits''.
       On page 1081, line 24, insert ``, including intrastate 
     activities'' after ``materials''.
       Beginning on page 1083, strike line 15 and all that follows 
     through page 1086, line 13, and insert the following:
       ``(d) Apportionments.--
       ``(1) In general.--The Secretary shall make funds available 
     to all States for development, deployment, and operations and 
     maintenance of commercial vehicle information systems and 
     networks.
       ``(2) Eligibility.--To be eligible to receive funds under 
     this section, a State shall--
       ``(A) have a commercial vehicle information systems and 
     networks program plan and a top-level system design approved 
     by the Secretary;
       ``(B) certify to the Secretary that the commercial vehicle 
     information systems and networks deployment activities of the 
     State, including hardware procurement, software and system 
     development, and infrastructure modifications--
       ``(i) are consistent with the national intelligent 
     transportation systems architecture, commercial vehicle 
     information systems and networks architectures, and available 
     standards; and
       ``(ii) promote interoperability and efficiency to the 
     extent practicable;
       ``(C) agree to execute interoperability tests developed by 
     the Federal Motor Carrier Safety Administration to verify 
     that the systems in the State conform with the national 
     intelligent transportation systems architecture, protocols 
     for commercial vehicle information systems and networks, and 
     applicable standards; and
       ``(D) limit the use of funds provided under this section to 
     core deployment until the date on which all elements of core 
     deployment are completed.
       ``(3) Amount of grants.--
       ``(A) In general.--Subject to subparagraph (B), for each 
     fiscal year, the Secretary shall distribute available funds 
     equally among eligible States.
       ``(B) Limit.--For each fiscal year, no State shall receive 
     an amount greater than $3,650,000.''.
                                 ______
                                 
  SA 2353. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 931, line 9, strike ``Multistate'' and insert 
     ``High priority''.
       On page 931, between lines 11 and 12, insert the following:
       ``(1) plan, develop, and construct high priority corridors 
     identified in section 1105 (c) of the Intermodal Surface 
     Transportation Act of 1991 (105 Stat. 2032);''.
       On page 931, line 12, strike ``(1)'' and insert ``(2)''.
       On page 931, line 14, strike ``(2)'' and insert ``(3)''.
       On page 931, strike lines 20 through 22 and insert the 
     following:
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under this program for coordinated planning, 
     design, and construction of--
       ``(1) high priority corridors identified in section 1105 
     (c) of the Intermodal Surface Transportation Act of 1991 (105 
     Stat. 2032); and
       ``(2) multistate corridors.''.
       On page 932, line 4, insert ``for multistate corridors,'' 
     after ``program''.
                                 ______
                                 
  SA 2354. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 678, between lines 5 and 6, insert the following:
       (16) Congestion reduction reward fund.--For the congestion 
     reduction reward fund established under section 129 of title 
     23, United States Code, $1,000,000,000 for the period of 
     fiscal years 2004 through 2009.
       On page 6-39, line 5, strike the closing quotation marks 
     and the following period.
       On page 6-39, between lines 5 and 6, insert the following:
       ``(5) Congestion reduction reward fund.--
       ``(A) Establishment of fund.--There is established in the 
     Treasury of the United States a congestion reduction reward 
     fund (referred to in this paragraph as the `Fund') to carry 
     out subparagraph (B), consisting of such amounts as are 
     appropriated to the Fund under section 1101(17) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003.
       ``(B) Grants.--
       ``(i) In general.--The Secretary may use amounts in the 
     Fund to make competitive grants to States that implement a 
     variable pricing program under this subsection.
       ``(ii) Application.--States shall submit to the Secretary 
     applications for grants under clause (i).
       ``(iii) Selection.--From among applications submitted under 
     clause (ii), the Secretary shall provide grants to applicants 
     based on--
       ``(I) the size of the measurable reduction in congestion as 
     a result of the variable pricing program;
       ``(II) the percentage reduction in congestion as a result 
     of the variable pricing program;
       ``(III) the innovativeness of the variable pricing program;
       ``(IV) whether the variable pricing program addressed 
     concerns relating to the social equity of the program; and
       ``(V) any other criteria that demonstrably improve the 
     surface transportation system.
       ``(iv) Use of Funds.--Any amounts provided in the form of 
     grants under this subparagraph may be used for any 
     transportation projects that the grant recipients determine 
     to be appropriate.
       ``(v) Number of grants.--The number of grants the Secretary 
     provides under this subparagraph shall be determined by the 
     Secretary, but the Secretary shall distribute all amounts 
     available for grants to applicants selected under clause 
     (iii).
       ``(vi) Redistribution.--If no State implements a variable 
     pricing program, any amounts in the congestion reduction 
     reward fund shall be distributed in accordance with section 
     133.''.
                                 ______
                                 
  SA 2355. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 934, strike line 6 and all that follows 
     through page 942, line 5, and insert the following:

     SEC. 1812. COORDINATED BORDER INFRASTRUCTURE PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1811(a)), is 
     amended by adding at the end the following:

     ``Sec. 172 Coordinated border infrastructure program

       ``(a) Definitions.--In this section:
       ``(1) Border region.--The term ``border region'' means the 
     portion of a border State that is located within 100 
     kilometers of a land border crossing with Canada or Mexico.
       ``(2) Border state.--The term ``border State'' means any 
     State that has a boundary in common with Canada or Mexico.
       ``(3) Commercial vehicle.--The term ``commercial vehicle'' 
     means a vehicle that has the primary purpose of transporting 
     cargo in international or interstate commercial trade.
       ``(4) Passenger vehicle.--The term ``passenger vehicle'' 
     means a vehicle that has the primary purpose of transporting 
     individuals.
       ``(b) Program.--The Secretary shall establish and implement 
     a coordinated border infrastructure program under which the 
     Secretary shall make allocations to border States for 
     projects within a border region to improve the safe movement 
     of people and

[[Page S1086]]

     goods at or across the border between the United States and 
     Canada and the border between the United States and Mexico.
       ``(c) Eligible Uses.--A State may use an allocations under 
     this section in a border region only for--
       ``(1) improvements to transportation and supporting 
     infrastructure that facilitate cross-border vehicle and cargo 
     movements;
       ``(2) construction of highways and related safety and 
     safety enforcement facilities that facilitate vehicle and 
     cargo movements relating to international trade;
       ``(3) operational improvements, including improvements 
     relating to electronic data interchange and use of 
     telecommunications, to expedite cross-border vehicle and 
     cargo movement;
       ``(4) international coordination of planning, programming, 
     and border operation with Canada and Mexico relating to 
     expediting cross-border vehicle and cargo movements;
       ``(5) projects in Canada or Mexico proposed by 1 or more 
     border States that directly and predominantly facilitate 
     cross-border vehicle and commercial cargo movements at the 
     international gateways or ports of entry into a border 
     region; and
       ``(6) planning and environmental studies relating to 
     projects eligible under this section.
       ``(d) Mandatory and Discretionary Programs.--
       ``(1) Mandatory program.--
       ``(A) In general.--For each fiscal year, the Secretary 
     shall allocate among border States, in accordance with the 
     formula described in subparagraph (B), funds to be used in 
     accordance with subsection (c).
       ``(B) Formula.--Subject to subparagraph (C), the Secretary 
     shall allocate funds to a border State under this paragraph 
     as follows:
       ``(i) 25 percent shall be allocated in the ratio, as 
     determined by the Secretary using data collected by the 
     Bureau of Transportation Statistics Transborder Surface 
     Freight Dataset and based on an average of the 3 most recent 
     years for which data are available, that--
       ``(I) the weight in short tons of all cargo entering the 
     border State by commercial vehicle across the international 
     border with Canada or Mexico; bears to
       ``(II) the weight in short tons of all cargo entering the 
     all border States by commercial vehicle across the 
     international borders with Canada and Mexico.
       ``(ii) 25 percent shall be allocated in the ratio, as 
     determined by the Secretary using data collected by the 
     Bureau of Transportation Statistics Transborder Surface 
     Freight Dataset and based on an average of the 3 most recent 
     years for which data are available, that--
       ``(I) the trade value of all cargo entering the border 
     State by commercial vehicle and all cargo exiting the border 
     State by commercial vehicle across the international border 
     with Canada or Mexico; bears to
       ``(II) the trade value of all cargo entering all border 
     States by commercial vehicle and all cargo exiting the border 
     States by commercial vehicle across the international borders 
     with Canada and Mexico.
       ``(iii) 25 percent shall be allocated in the ratio, as 
     determined by the Secretary using data collected by the 
     Bureau of Transportation Statistics Transborder Surface 
     Freight Dataset and based on an average of the 3 most recent 
     years for which data are available, that--
       ``(I) the number of commercial vehicles annually entering 
     the border State across the international border with Canada 
     or Mexico; bears to
       ``(II) the number of all commercial vehicles annually 
     entering all border States across the international borders 
     with Canada and Mexico.
       ``(iv) 25 percent shall be allocated in the ratio, as 
     determined by the Secretary using data collected by the 
     Bureau of Transportation Statistics Transborder Surface 
     Freight Dataset and based on an average of the 3 most recent 
     years for which data are available, that--
       ``(I) the number of passenger vehicles annually entering 
     the border State across the international border with Canada 
     or Mexico; bears to
       ``(II) the number of all passenger vehicles annually 
     entering all border States across the international borders 
     with Canada and Mexico.
       ``(C) Minimum allocation.--Notwithstanding subparagraph 
     (B), for each fiscal year, each border State shall receive at 
     least half of 1 percent of the funds made available for 
     allocation under this paragraph for the fiscal year.
       ``(2) Other factors.--
       ``(A) In general.--In addition to funds allocated under 
     paragraph (1), the Secretary shall make allocations to border 
     States under this paragraph based on the factors described in 
     subparagraph (B).
       ``(B) Factors.--The factors in subparagraph (A) are, with 
     respect to a project carried out under this section in a 
     border State--
       ``(i) any expected reduction in commercial and other motor 
     vehicle travel time through an international border crossing 
     as a result of the project;
       ``(ii) strategies to increase the use of underused border 
     crossing facilities and approaches;
       ``(iii) leveraging of Federal funds provided under this 
     section, including--
       ``(I) the use of innovative financing;
       ``(II) the combination of Federal funds provided under this 
     section with funding provided for other provisions of this 
     title; and
       ``(III) the combination of Federal funds provided under 
     this section with funds from other Federal, State, local, or 
     private sources;
       ``(iv)(I) the degree of multinational involvement in the 
     project; and
       ``(II) demonstrated coordination with other Federal 
     agencies responsible for the inspection of vehicles, cargo, 
     and persons crossing international borders and counterpart 
     agencies in Canada and Mexico;
       ``(v) the degree of demonstrated coordination with Federal 
     inspection agencies;
       ``(vi) the extent to which the innovative and problem-
     solving techniques of the proposed project would be 
     applicable to other border stations or ports of entry;
       ``(vii) demonstrated local commitment to implement and 
     sustain continuing comprehensive border or affected port of 
     entry planning processes and improvement programs; and
       ``(viii) such other factors as the Secretary determines to 
     be appropriate to promote border transportation efficiency 
     and safety.
       ``(3) Equity bonus.--Each of the mandatory programs under 
     paragraph (1) and the discretionary program under paragraph 
     (2) shall be included in the calculation of the minimum 
     guarantee and equity bonus under section 105.
       ``(e) Cost Sharing.--The Federal share of the cost of a 
     project carried out using funds allocated under this section 
     shall not exceed 80 percent.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1811(b)), is amended by adding at the end the 
     following:

``172. Coordinated border infrastructure program.''.

     SEC. 1813. PUERTO RICO HIGHWAY PROGRAM.

                                 ______
                                 
  SA 2356. Mr. CORNYN (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 82, between lines 21 and 22, insert the following:

     SEC. 12__. MULTIMODAL TRANSPORTATION PROJECT DEMONSTRATION 
                   PROGRAM.

       (a) Definition of Multimodal Transportation Project.--In 
     this section, the term ``multimodal transportation project'' 
     means a project under chapter 1 of title 23, United States 
     Code, that--
       (1) is located in the State of Texas;
       (2) is within a network of interconnected corridors;
       (3) is privately financed, in whole or in part; and
       (4) contains multiple surface transportation modes, 
     including highway and rail and utility corridors.
       (b) Establishment of Program.--
       (1) In general.--The Secretary shall establish and 
     implement in the State of Texas a demonstration program under 
     which the Secretary, notwithstanding any other provision of 
     law, may permit the State transportation department or a 
     local transportation agency in the State of Texas to 
     authorize a consultant under a contract for a multimodal 
     transportation project to prepare an environmental impact 
     assessment or analysis (including an environmental impact 
     statement) relating to a segment of the project of less than 
     independent utility and without logical termini.
       (2) Contract terms.--A contract for a multimodal 
     transportation project under this subsection may provide for 
     the simultaneous--
       (A) design and construction of a segment of the project for 
     which the environmental assessment or analysis has been 
     completed; and
       (B) environmental assessment or analysis of an adjoining 
     segment of the project.
       (c) Limitation on Work To Be Performed by Consultant.--
       (1) In general.--The work of the consultant under 
     subsection (b) shall be performed under the direction of, and 
     subject to oversight by, the State transportation department 
     or local transportation agency.
       (2) Review.--The State transportation department or local 
     transportation agency shall conduct a review that assesses 
     the objectivity of the environmental assessment, 
     environmental analysis, or environmental impact statement 
     prepared under subsection (b) before its submission to the 
     Secretary.
       (d) Funding.--Notwithstanding any other provision of law--
       (1) funds made available to the State of Texas under title 
     23, United States Code, to carry out the demonstration 
     program authorized under this section may be used by the 
     State of Texas to pay the costs of an eligible project under 
     this section, without requirement for non-Federal funds; and
       (2) an eligible project under this section shall be 
     eligible for other forms of financial assistance available 
     under that title, including loans, loan guarantees, and lines 
     of credit.
       (e) Regulations.--The Secretary shall promulgate 
     regulations that--
       (1) provide guidelines regarding procedures to be followed 
     by the State transportation

[[Page S1087]]

     department or a coal transportation agency in the State of 
     Texas in their direction of and oversight over any 
     environmental impact assessments or analyses for a multimodal 
     transportation project which are to be prepared by the 
     contractor or its affiliates; and
       (2) establish criteria for approving deviations from 
     procedures established in regulations issued by the Secretary 
     of Transportation implementing the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       (f) Implementation by Other Federal Agencies.--Each Federal 
     agency that--
       (1) has jurisdiction by law over environment-related issues 
     that may be affected by a project described in this section 
     and the analysis of which would be part of any environmental 
     document required by the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.); or
       (2) may be required by Federal law to independently--
       (A) conduct an environment-related review or analysis for a 
     project described in this section;
       (B) determine whether to issue a permit, license, or 
     approval for the project; or
       (C) render an opinion or recommendation on the 
     environmental impact of the project;
     shall promulgate regulations providing for the expedited 
     processing of, and approval of deviations from, the project 
     by the agency.
       (g) Reports and Secretarial Review.--
       (1) State of texas report.--
       (A) In general.--Not later than 3 years after the date of 
     enactment of this section, the State of Texas shall submit to 
     the Secretary a report summarizing the use of the procedures 
     authorized under this section.
       (B) Contents.--The report shall--
       (i) describe the time and cost savings resulting from the 
     use of those procedures as compared to the construction of 
     surface transportation projects using the existing procedures 
     authorized under the Federal-aid highway program and Federal 
     law; and
       (ii) recommend revisions necessary to further streamline 
     and accelerate the construction of surface transportation 
     projects.
       (2) Report to congress.--Not later than 180 days after the 
     date of receipt of the report under paragraph (1), the 
     Secretary shall submit to Congress a report that--
       (A) evaluates the demonstration program conducted under 
     this section and the ability of the program to streamline and 
     accelerate the construction of surface transportation 
     projects; and
       (B) contains recommendations of the Secretary concerning 
     whether the program should be expanded or made a part of the 
     Federal-aid highway program.
                                 ______
                                 
  SA 2357. Mr. CORNYN (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe  to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. INNOVATIVE FINANCE DEMONSTRATION PROGRAM.

       (a) In General.--The Secretary shall establish and 
     implement in the State of Texas an innovative finance 
     demonstration program under which the Secretary, 
     notwithstanding any provision of title 23, United States 
     Code, may permit entities in the State of Texas to obtain 
     credit assistance under the Transportation Infrastructure 
     Finance and Innovation Act of 1998 (23 U.S.C. 181 et seq.), 
     and permit the State of Texas to administer the State 
     infrastructure bank established by the State of Texas, under 
     the conditions and using the procedures authorized under this 
     section.
       (b) Applicability of Federal Requirements.--
       (1) Eligible project costs.--Compliance with Federal-aid 
     procurement requirements shall not be a condition to 
     eligibility of project costs and eligibility to receive 
     financial assistance under subchapter II of chapter 1 of 
     title 23, United States Code (23 U.S.C. 181 et seq.), 
     provided that if a procurement does not involve adequate 
     price competition, as determined by the Secretary, 
     eligibility of costs under the contract resulting from such 
     procurement shall be determined based on a price 
     reasonableness analysis or cost analysis, as appropriate.
       (2) Applicability of federal law to repayments.--The 
     requirements of titles 23 and 49, United States Code, shall 
     not apply to repayments from non-Federal sources to the State 
     infrastructure bank established by the State of Texas from 
     projects assisted by the infrastructure bank. Such a 
     repayment shall not be considered to be Federal funds.
       (c) Investment-Grade Rating Requirement.--The requirement 
     that a project's senior obligations receive an investment-
     grade rating in order to receive financial assistance under 
     sections 183 and 184 of title 23, United States Code, shall 
     not apply to obligations issued to a project contractor as 
     payment for its work.
       (d) Nonsubordination of Loans.--The prohibition against 
     subordinating loans made under sections 183 and 184 of title 
     23, United States Code, to the claims of any holder of 
     project obligations shall only apply in the event of 
     bankruptcy, insolvency, or liquidation of the obligor that 
     results in the abandonment, liquidation, or dissolution of 
     the project.
       (e) Regulations.--The regulations issued by the Secretary 
     under section 187 of title 23, United States Code shall--
       (1) prescribe criteria for determining if the procurement 
     relating to a project receiving financial assistance under 
     subchapter II of chapter 1 of title 23, United States Code 
     (23 U.S.C. 181 et seq.), involves adequate price competition; 
     and
       (2) provide guidelines regarding procedures to be followed 
     in performing a price reasonableness analysis or cost 
     analysis of proposals submitted under such a procurement.
       (f) Reports.--
       (1) Report to secretary.--
       (A) In general.--Not later than 3 years after the date of 
     enactment of this section, the Governor of the State of Texas 
     shall submit to the Secretary a report summarizing the use of 
     the innovative finance procedures authorized under this 
     section.
       (B) Requirements.--The report submitted under subparagraph 
     (A) shall describe the time and cost savings resulting from 
     the use of those procedures as compared to the construction 
     of surface transportation projects using the existing 
     procedures authorized under the Federal-aid highway program, 
     and shall recommend revisions necessary to further streamline 
     and accelerate the construction of surface transportation 
     projects.
       (2) Report to congress.--Not later than 6 months after 
     receipt of the report submitted under paragraph (1), the 
     Secretary shall submit to Congress a report--
       (A) evaluating the demonstration program conducted under 
     this section and the ability of such program to streamline 
     and accelerate the construction of surface transportation 
     projects; and
       (B) containing recommendations of the Secretary as to 
     whether the program should be expanded or made a part of the 
     Federal-aid highway program.
                                 ______
                                 
  SA 2358. Mr. CORNYN (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe  to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 389, between line 15 and line 16, insert the 
     following:

     SEC. 18__. INNOVATIVE CONTRACTING PRACTICES DEMONSTRATION 
                   PROGRAM.

       (a) Establishment and Implementation.--The Secretary shall 
     establish and implement in the State of Texas an innovative 
     contracting practices demonstration program under which the 
     Secretary, notwithstanding any provision of title 23, United 
     States Code, may permit the State transportation department 
     or a local transportation agency in the State of Texas to use 
     a design-build contract for the development of projects under 
     chapter 1 of title 23, United States Code, that is awarded 
     using any procurement process permitted by applicable State 
     and local law.
       (b) Limitation on Work To Be Performed Under Design-Build 
     Contracts.--Construction of permanent improvements shall not 
     commence under a design-build contract described in 
     subsection (a) before compliance with section 102 of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4332). 
     The scope of the contractor's work may include assistance in 
     the environmental review process for the project, including 
     preparation of environmental impact assessments and analyses, 
     provided that such work is performed under the direction of, 
     and subject to oversight by, the State transportation 
     department or local transportation agency, and the State 
     transportation department or local transportation agency 
     conducts a review that assesses the objectivity of the 
     environmental assessment, environmental analysis, or 
     environmental impact statement prior to its submission to the 
     Secretary of Transportation.
       (c) Project Approval.--If a design-build contract is to be 
     awarded prior to compliance with section 102 of the National 
     Environmental Policy Act of 1969, upon request by the State 
     transportation department or local transportation agency, the 
     Secretary shall concur in issuance of the procurement 
     documents and any amendments thereto and in award of the 
     contract and any amendments thereto. Such concurrence shall 
     be considered a preliminary action that does not affect the 
     environment. Project approval shall be provided only after 
     compliance with section 102 of the National Environmental 
     Policy Act of 1969.
       (d) Design-Build Contract Defined.--In this section, the 
     term ``design-build contract'' means an agreement that 
     provides for design and construction of a project by a 
     contractor, regardless of whether the agreement is in the 
     form of a design-build contract, a franchise agreement, or 
     any other form of contract approved by the Secretary.
       (e) Funding.--
       (1) Use.--Notwithstanding any other provision of law, funds 
     made available to the State of Texas under title 23, United 
     States Code, to carry out the demonstration program 
     authorized under this section may be used by the State of 
     Texas to pay the costs of an eligible project under this 
     section, without requirement for non-Federal funds.
       (2) Availability of other funding.--Notwithstanding any 
     other provision of law, an

[[Page S1088]]

     eligible project under this section shall be eligible for 
     other forms of financial assistance available under title 23, 
     United States Code, including loans, loan guarantees, and 
     lines of credit.
       (f) Regulations.--The regulations authorized by section 
     1307(c) of Transportation Equity Act for the 21st Century (23 
     U.S.C. 112 note) shall apply in the following manner:
       (1) Such regulations shall allow the State transportation 
     department or a local transportation agency in the State of 
     Texas to use any procurement process permitted by applicable 
     State and local law in awarding design-build contracts, 
     including allowing unsolicited proposals, negotiated 
     procurements and multiple requests for final proposals. The 
     Secretary may require reasonable justification to be provided 
     for any sole source procurement. The preceding sentences 
     shall not preclude the Secretary from providing ``best 
     practices'' guidelines in the regulations.
       (2) Such regulations shall not preclude the State 
     transportation department and local transportation agencies 
     in the State of Texas from allowing proposers to include 
     alternative technical concepts in their ``base'' proposals.
       (3) Such regulations shall not preclude the State 
     transportation department and local transportation agencies 
     in the State of Texas from issuing a Request for Proposals 
     document, proceeding with award of a design-build contract, 
     or issuing a notice to proceed with preliminary design work 
     under such a contract, prior to compliance with section 102 
     of the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332), provided that the design-build contractor may not 
     proceed with construction of permanent improvements prior to 
     such compliance.
       (4) Such regulations shall provide guidelines regarding 
     procedures to be followed by the State transportation 
     department or a local transportation agency in the State of 
     Texas in their direction of and oversight over any 
     environmental impact assessments or analyses for the project 
     which are to be prepared by the contractor or its affiliates.
       (g) Reports.--
       (1) State of texas report.--Not later than 3 years after 
     the date of enactment of this section, the State of Texas 
     shall submit to the Secretary a report summarizing the use of 
     the innovative contracting procedures authorized under this 
     section. The report shall describe the time and cost savings 
     resulting from the use of those procedures as compared to the 
     construction of surface transportation projects using the 
     existing procedures authorized under the Federal-aid highway 
     program, and shall recommend revisions necessary to further 
     streamline and accelerate the construction of surface 
     transportation projects.
       (2) Report by secretary.--Not later than 6 months after 
     receipt of the report submitted under paragraph (1), the 
     Secretary shall submit to Congress a report--
       (A) evaluating the demonstration program conducted under 
     this section and the ability of such program to streamline 
     and accelerate the construction of surface transportation 
     projects; and
       (B) containing recommendations of the Secretary as to 
     whether the program should be expanded or made a part of the 
     Federal-aid highway program.
                                 ______
                                 
  SA 2359. Mr. CORNYN (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe  to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. LA ENTRADA AL PACIFICO CORRIDOR.

       Section 1105(c) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (Public Law 102-240; 105 Stat 2032) is 
     amended by adding at the end the following:
       ``(45) In the State of Texas, the La Entrada al Pacifico 
     Corridor consisting of any portion of a highway in a corridor 
     on 2 miles of either side of the center line of the highway 
     and--
       ``(A) State Route 349 from Lamesa to the point on that 
     highway that is closest to 32 degrees, 7 minutes, north 
     latitude, by 102 degrees, 6 minutes, west longitude;
       ``(B) the segment or any roadway extending from the point 
     described in subparagraph (A) to the point on Farm-to-Market 
     Road 1788 closest to 32 degrees, 0 minutes, north latitude, 
     by 102 degrees, 16 minutes, west longitude;
       ``(C) Farm-to-Market Road 1788 from the point described by 
     subparagraph (B) to its intersection with Interstate Route 
     20;
       ``(D) Interstate Route 20 from its intersection with Farm-
     to-Market Road 1788 to its intersection with United States 
     Route 385;
       ``(E) United States Route 385 from Odessa to Fort Stockton, 
     including those portions that parallel United States Route 67 
     and Interstate Route 10; and
       ``(F) United States Route 67 from Fort Stockton to 
     Presidio, including the portions that parallel Interstate 
     Route 10 and United States Route 90.''.
                                 ______
                                 
  SA 2360. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 255, between lines 17 and 18, insert the following:
       (c) Toll Credit for Non-Federal Share.--
       (1) Eligibility.--Section 120(j)(1) of title 23, United 
     States Code, is amended by striking the last sentence and 
     inserting the following: ``The amount of the credit that is 
     attributable to expenditures by such public, quasi-public, or 
     private agencies to build, improve, or maintain facilities in 
     which a portion of the costs are paid for with Federal funds 
     shall be limited to the amount of non-Federal funds that are 
     used to pay the costs of such facilities, except that such 
     amount of the credit shall be increased to include the amount 
     of Federal loans or other financial assistance that will be 
     repaid by such public, quasi-public, or private agencies.''.
       (2) Maintenance of Effort Calculation.--Section 120(j) of 
     title 23, United States Code, is amended--
       (A) by striking paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2).
                                 ______
                                 
  SA 2361. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 389, between line 15 and line 16, insert the 
     following:

     SEC. 18__. TOLLING PILOT PROGRAM.

       (a) Establishment and Implementation.--The Secretary shall 
     establish and implement in the State of Texas a tolling pilot 
     program under which the Secretary, notwithstanding any 
     provision of title 23, United States Code, may permit--
       (1) the State of Texas to collect tolls on a highway, 
     bridge, or tunnel on the Interstate system; and
       (2) the State transportation department or a local 
     transportation agency in the State of Texas to use toll 
     revenues received from the operation of a toll facility 
     authorized under this section or under section 129 of title 
     23, United States Code, for any transportation related 
     purpose permitted by applicable State and local law.
       (b) Repayment of Federal Share.--
       (1) In general.--Notwithstanding any provision of title 23, 
     United States Code, the total amount of funds paid from the 
     Highway Account of the Highway Trust Fund to the State of 
     Texas for construction of a highway, bridge, or tunnel within 
     the boundaries of the State of Texas may be repaid to the 
     Secretary.
       (2) Deposit of credit.--The Secretary of Transportation 
     shall deposit amounts repaid by the State of Texas pursuant 
     to paragraph (1) into the Highway Account and credit such 
     amount to the unobligated balance of Federal-aid highway 
     funds available to the State of Texas for the same class of 
     funds last apportioned or allocated to the State of Texas for 
     construction of the highway, bridge, or tunnel. The amount so 
     credited shall be in addition to all other funds then 
     apportioned or allocated to the State of Texas during the 
     fiscal year for which the credit is received and shall be 
     available for expenditure by the State of Texas in accordance 
     with the provisions of title 23, United States Code.
       (3) Deregulation.--Upon the repayment under this subsection 
     of all Federal-aid highway funds received by the State of 
     Texas for construction of a highway, bridge, or tunnel, the 
     highway, bridge, or tunnel--
       (A) shall be removed by the Secretary from all Federal-aid 
     highway programs;
       (B) shall not be subject to any other provision of title 
     23, United States Code, including any regulation issued to 
     carry out that title; and
       (C) may be operated and maintained by a public authority 
     having jurisdiction over the highway, bridge, or tunnel under 
     applicable State or local law.
       (c) Funding.--
       (1) Use.--Notwithstanding any other provision of law, funds 
     made available to the State of Texas under title 23, United 
     States Code to carry out the pilot program authorized under 
     this section may be used by the State of Texas to pay the 
     costs of an eligible project under this section, the same 
     class of funds last apportioned or allocated to the State of 
     Texas without requirement for non-Federal funds.
       (2) Availability of other funding.--Notwithstanding any 
     other provision of law, an eligible project under this 
     section shall be eligible for other forms of financial 
     assistance available under title 23, United States Code, 
     including loans, loan guarantees, and lines of credit.
       (d) Reports.--
       (1) State of texas report.--Not later than 3 years after 
     the date of enactment of this section, the State of Texas 
     shall submit to the Secretary a report summarizing the 
     construction, maintenance, and operation of projects and the 
     use of toll revenue under this section. The report shall 
     describe the time and cost savings resulting from the use of 
     procedures authorized in this section as compared to the 
     construction of surface transportation projects using the 
     existing

[[Page S1089]]

     procedures authorized under the Federal-aid highway program, 
     and shall recommend revisions necessary to further streamline 
     and accelerate the construction of surface transportation 
     projects.
       (2) Report by secretary.--Not later than 6 months after 
     receipt of the report submitted under paragraph (1), the 
     Secretary of Transportation shall submit to Congress a 
     report--
       (A) evaluating the demonstration program conducted under 
     this section and the ability of such program to streamline 
     and accelerate the construction of surface transportation 
     projects; and
       (B) containing recommendations of the Secretary of 
     Transportation as to whether the program should be expanded 
     or made a part of the Federal-aid highway program.
                                 ______
                                 
  SA 2362. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 461, line 13, strike the period and insert the 
     following: ``of which the current Southwest Regional 
     Transportation Center (Texas A&M, the University of Texas at 
     Austin, and Texas Southern University) shall be one.''
                                 ______
                                 
  SA 2363. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 39, between lines 22 and 23, insert the following:
       (17) FINISH program.--For the FINISH program under section 
     178 of that title, for each of fiscal years 2004 through 
     2009, an amount equal to 6.4 percent of the amounts received 
     in the Highway Trust Fund (other than the Mass Transit 
     Account) for the fiscal year under section 9503(b) of the 
     Internal Revenue Code of 1986.

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. FINISH PROGRAM.

       (a) In General.--Subtitle I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. FINISH program

       ``(a) In General.--The Secretary shall establish and carry 
     out a program, to be known as the `FINISH program', under 
     which the Secretary shall apportion funds to States for use 
     in the acceleration and completion of coordinated planning, 
     design, and construction of internationally significant 
     highway projects, as determined by the Secretary.
       ``(b) Eligible Projects.--The Secretary shall apportion 
     funds under this section for highway projects described in 
     subsection (a) that are located on any of the high priority 
     corridors described in paragraphs (1) and (37), (18) and 
     (20), (23), (26), (38), or (44) of section 1105(c) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (105 
     Stat. 2032), as determined by the applicable State and 
     approved by the Secretary.
       ``(c) Apportionment.--For each of fiscal years 2004 through 
     2009, the Secretary shall apportion funds made available 
     under this section for the fiscal year to each State in the 
     proportion that, as determined by the applicable State and 
     approved by the Secretary--
       ``(1) the estimated amount that may be obligated in the 
     fiscal year for the completion of the eligible projects 
     described in subsection (b) in the State; bears to
       ``(2) the total estimated amount that may be obligated in 
     the fiscal year for the completion of eligible projects 
     described in subsection (b) in all States.
       ``(d) Authorization of Appropriations.--For each of fiscal 
     years 2004 through 2009, there is authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out this section an amount equal to 
     6.4 percent of the amounts received in the Highway Trust Fund 
     (other than the Mass Transit Account) for the fiscal year 
     under section 9503(b) of the Internal Revenue Code of 
     1986.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. FINISH program.''.
                                 ______
                                 
  SA 2364. Mr. SCHUMER submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike section 5507 and insert the following:

     SEC. 5507. UNIFORM DOLLAR LIMITATION FOR ALL TYPES OF 
                   TRANSPORTATION FRINGE BENEFITS; CLARIFICATION 
                   OF FEDERAL EMPLOYEE BENEFITS.

       (a) Uniform Dollar Limitation For All Types of 
     Transportation Fringe Benefits.--
       (1) In general.--Section 132(f)(2) of the Internal Revenue 
     Code of 1986 (relating to limitation on exclusion) is 
     amended--
       (A) by striking ``$100'' in subparagraph (A) and inserting 
     ``$190'', and
       (B) by striking ``$175'' in subparagraph (B) and inserting 
     ``$190''.
       (2) Inflation adjustment conforming amendments.--
     Subparagraph (A) of section 132(f)(6) of the Internal Revenue 
     Code of 1986 (relating to inflation adjustment) is amended--
       (A) by striking the last sentence,
       (B) by striking ``1999'' and inserting ``2003'', and
       (C) by striking ``1998'' and inserting ``2002''.
       (3) Effective Date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2003.
       (b) Clarification of Federal Employee Benefits.--Section 
     7905 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(C) by inserting ``and'' after the 
     semicolon;
       (B) in paragraph (3) by striking ``; and'' and inserting a 
     period; and
       (C) by striking paragraph (4); and
       (2) in subsection (b)(2)(A) by amending subparagraph (A) to 
     read as follows:
       ``(A) a qualified transportation fringe as defined in 
     section 132(f)(1) of the Internal Revenue Code of 1986;''.
                                 ______
                                 
  SA 2365. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert:

     SEC. __. TAX TREATMENT OF CONTROLLED FOREIGN CORPORATIONS 
                   ESTABLISHED IN TAX HAVENS.

       (a) In General.--Subchapter C of chapter 80 (relating to 
     provisions affecting more than one subtitle), as amended by 
     this Act, is amended by adding at the end the following new 
     section:

     ``SEC. __. 7875. CONTROLLED FOREIGN CORPORATIONS IN TAX 
                   HAVENS TREATED AS DOMESTIC CORPORATIONS.

       ``(a) General Rule.--If a controlled foreign corporation is 
     a tax-haven CFC, then, notwithstanding section 7701(a)(4), 
     such corporation shall be treated for purposes of this title 
     as a domestic corporation.
       ``(b) Tax-Haven CFC.--For purposes of this section--
       ``(1) In general.--The term `tax-haven CFC' means, with 
     respect to any taxable year, a foreign corporation which--
       ``(A) was created or organized under the laws of a tax-
     haven country, and
       ``(B) is a controlled foreign corporation (determined 
     without regard to this section) for an uninterrupted period 
     of 30 days or more during the taxable year.
       ``(2) Exception.--The term `tax-haven CFC' does not include 
     a foreign corporation for any taxable year if substantially 
     all of its income for the taxable year is derived from the 
     active conduct of trades or businesses within the country 
     under the laws of which the corporation was created or 
     organized.
       ``(c) Tax-Haven Country.--For purposes of this section--
       ``(1) In general.--The term `tax-haven country' means any 
     of the following:

Andorra                   Gibraltar                 Netherlands
                                                    Antilles
Anguilla                  Grenada                   Niue
Antigua and Barbuda       Guernsey                  Panama
Aruba                     Isle of Man               Samoa
Commonwealth of the       Jersey                    San Marino
Bahamas
Bahrain                   Liberia                   Federation of
                                                    Saint Christopher
                                                    and Nevis
Barbados                  Principality of           Saint Lucia
                          Liechtenstein
Belize                    Republic of the           Saint Vincent
                          Maldives                  and the Grenadines
Bermuda                   Malta                     Republic of the
                                                    Seychelles
British Virgin Islands    Republic of the           Tonga
                          Marshall Islands
Cayman Islands            Mauritius                 Turks and Caicos
Cook Islands              Principality of Monaco    Republic of
                                                    Vanuatu
Cyprus                    Montserrat
Commonwealth of the       Republic of Nauru
Dominica
 

       ``(2) Secretarial authority.--The Secretary may remove or 
     add a foreign jurisdiction from the list of tax-haven 
     countries under paragraph (1) if the Secretary determines 
     such removal or addition is consistent with the purposes of 
     this section.''
       (b) Conforming Amendment.--The table of sections for 
     subchapter C of chapter 80 is amended by adding at the end 
     the following new item:

``Sec 7875. Controlled foreign corporations in tax havens treated as 
              domestic corporations.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.
                                 ______
                                 
  SA 2366. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which

[[Page S1090]]

was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. __. EXTENSION AND EXPANSION OF CREDIT FOR ELECTRICITY 
                   PRODUCED FROM CERTAIN RENEWABLE RESOURCES.

       (a) Expansion of Qualified Energy Resources.--Subsection 
     (c) of section 45 of the Internal Revenue Code of 1986 
     (relating to electricity produced from certain renewable 
     resources) is amended to read as follows:
       ``(c) Qualified Energy Resources.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified energy resources' 
     means--
       ``(A) wind,
       ``(B) closed-loop biomass,
       ``(C) open-loop biomass,
       ``(D) geothermal energy,
       ``(E) solar energy,
       ``(F) small irrigation power, and
       ``(G) municipal solid waste.
       ``(2) Closed-loop biomass.--The term `closed-loop biomass' 
     means any organic material from a plant which is planted 
     exclusively for purposes of being used at a qualified 
     facility to produce electricity.
       ``(3) Open-loop biomass.--
       ``(A) In general.--The term `open-loop biomass' means--
       ``(i) any agricultural livestock waste nutrients, or
       ``(ii) any solid, nonhazardous, cellulosic waste material 
     which is segregated from other waste materials and which is 
     derived from--

       ``(I) any of the following forest-related resources: mill 
     and harvesting residues, precommercial thinnings, slash, and 
     brush,
       ``(II) solid wood waste materials, including waste pallets, 
     crates, dunnage, manufacturing and construction wood wastes 
     (other than pressure-treated, chemically-treated, or painted 
     wood wastes), and landscape or right-of-way tree trimmings, 
     but not including municipal solid waste, gas derived from the 
     biodegradation of solid waste, or paper which is commonly 
     recycled, or
       ``(III) agriculture sources, including orchard tree crops, 
     vineyard, grain, legumes, sugar, and other crop by-products 
     or residues.

     Such term shall not include closed-loop biomass.
       ``(B) Agricultural livestock waste nutrients.--
       ``(i) In general.--The term `agricultural livestock waste 
     nutrients' means agricultural livestock manure and litter, 
     including wood shavings, straw, rice hulls, and other bedding 
     material for the disposition of manure.
       ``(ii) Agricultural livestock.--The term `agricultural 
     livestock' includes bovine, swine, poultry, and sheep.
       ``(4) Geothermal energy.--The term `geothermal energy' 
     means energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2)).
       ``(5) Small irrigation power.--The term `small irrigation 
     power' means power--
       ``(A) generated without any dam or impoundment of water 
     through an irrigation system canal or ditch, and
       ``(B) the nameplate capacity rating of which is not less 
     than 150 kilowatts but is less than 5 megawatts.
       ``(6) Municipal solid waste.--The term `municipal solid 
     waste' has the meaning given the term `solid waste' under 
     section 2(27) of the Solid Waste Disposal Act (42 U.S.C. 
     6903).''.
       (b) Extension and Expansion of Qualified Facilities.--
       (1) In general.--Section 45 of the Internal Revenue Code of 
     1986 is amended by redesignating subsection (d) as subsection 
     (e) and by inserting after subsection (c) the following new 
     subsection:
       ``(d) Qualified Facilities.--For purposes of this section--
       ``(1) Wind facility.--In the case of a facility using wind 
     to produce electricity, the term `qualified facility' means 
     any facility owned by the taxpayer which is originally placed 
     in service after December 31, 1993, and before January 1, 
     2007.
       ``(2) Closed-loop biomass facility.--
       ``(A) In general.--In the case of a facility using closed-
     loop biomass to produce electricity, the term `qualified 
     facility' means any facility--
       ``(i) owned by the taxpayer which is originally placed in 
     service after December 31, 1992, and before January 1, 2007, 
     or
       ``(ii) owned by the taxpayer which before January 1, 2007, 
     is originally placed in service and modified to use closed-
     loop biomass to co-fire with coal, with other biomass, or 
     with both, but only if the modification is approved under the 
     Biomass Power for Rural Development Programs or is part of a 
     pilot project of the Commodity Credit Corporation as 
     described in 65 Fed. Reg. 63052.
       ``(B) Special rules.--In the case of a qualified facility 
     described in subparagraph (A)(ii)--
       ``(i) the 10-year period referred to in subsection (a) 
     shall be treated as beginning no earlier than January 1, 
     2004,
       ``(ii) the amount of the credit determined under subsection 
     (a) with respect to the facility shall be an amount equal to 
     the amount determined without regard to this clause 
     multiplied by the ratio of the thermal content of the closed-
     loop biomass used in such facility to the thermal content of 
     all fuels used in such facility, and
       ``(iii) if the owner of such facility is not the producer 
     of the electricity, the person eligible for the credit 
     allowable under subsection (a) shall be the lessee or the 
     operator of such facility.
       ``(3) Open-loop biomass facilities.--
       ``(A) In general.--In the case of a facility using open-
     loop biomass to produce electricity, the term `qualified 
     facility' means any facility owned by the taxpayer which--
       ``(i) in the case of a facility using agricultural 
     livestock waste nutrients--

       ``(I) is originally placed in service after December 31, 
     2003, and before January 1, 2007, and
       ``(II) the nameplate capacity rating of which is not less 
     than 150 kilowatts, and

       ``(ii) in the case of any other facility, is originally 
     placed in service before January 1, 2007.
       ``(B) Credit eligibility.--In the case of any facility 
     described in subparagraph (A), if the owner of such facility 
     is not the producer of the electricity, the person eligible 
     for the credit allowable under subsection (a) shall be the 
     lessee or the operator of such facility.
       ``(4) Geothermal or solar energy facility.--In the case of 
     a facility using geothermal or solar energy to produce 
     electricity, the term `qualified facility' means any facility 
     owned by the taxpayer which is originally placed in service 
     after December 31, 2003, and before January 1, 2007. Such 
     term shall not include any property described in section 
     48(a)(3) the basis of which is taken into account by the 
     taxpayer for purposes of determining the energy credit under 
     section 48.
       ``(5) Small irrigation power facility.--In the case of a 
     facility using small irrigation power to produce electricity, 
     the term `qualified facility' means any facility owned by the 
     taxpayer which is originally placed in service after December 
     31, 2003, and before January 1, 2007.
       ``(6) Landfill gas facilities.--In the case of a facility 
     producing electricity from gas derived from the 
     biodegradation of municipal solid waste, the term `qualified 
     facility' means any facility owned by the taxpayer which is 
     originally placed in service after December 31, 2003, and 
     before January 1, 2007.
       ``(7) Trash combustion facilities.--In the case of a 
     facility which burns municipal solid waste to produce 
     electricity, the term `qualified facility' means any facility 
     owned by the taxpayer which is originally placed in service 
     after December 31, 2003, and before January 1, 2007.''.
       (2) Conforming amendment.--Section 45(e) of such Code, as 
     so redesignated, is amended by striking ``subsection 
     (c)(3)(A)'' in paragraph (7)(A)(i) and inserting ``subsection 
     (d)(1)''.
       (c) Special Credit Rate and Period for Electricity Produced 
     and Sold After Enactment Date.--Section 45(b) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(4) Credit rate and period for electricity produced and 
     sold from certain facilities.--
       ``(A) Credit rate.--In the case of electricity produced and 
     sold after the date of the enactment of this paragraph at any 
     qualified facility described in paragraph (3), (5), (6), or 
     (7) of subsection (d), the amount in effect under subsection 
     (a)(1) for any calendar year beginning with the calendar year 
     in which such date occurs (determined before the application 
     of the last sentence of paragraph (2) of this subsection) 
     shall be reduced by one-third.
       ``(B) Credit period.--
       ``(i) In general.--Except as provided in clause (ii), in 
     the case of any facility described in paragraph (3), (4), 
     (5), (6), or (7) of subsection (d), the 5-year period 
     beginning on the date the facility was originally placed in 
     service shall be substituted for the 10-year period in 
     subsection (a)(2)(A)(ii).
       ``(ii) Certain open-loop biomass facilities.--In the case 
     of any facility described in subsection (d)(3)(A)(ii) placed 
     in service before January 1, 2004, the 5-year period 
     beginning on January 1, 2004, shall be substituted for the 
     10-year period in subsection (a)(2)(A)(ii).''.
       (d) Coordination With Section 48.--Section 48(a)(3) of the 
     Internal Revenue Code of 1986 (defining energy property) is 
     amended by adding at the end the following new sentence: 
     ``Such term shall not include any property which is part of a 
     facility the production from which is allowed as a credit 
     under section 45 for the taxable year or any prior taxable 
     year.''.
       (e) Elimination of Certain Credit Reductions.--Section 
     45(b)(3) of the Internal Revenue Code of 1986 (relating to 
     credit reduced for grants, tax-exempt bonds, subsidized 
     energy financing, and other credits) is amended--
       (1) by inserting ``the lesser of \1/2\ or'' before ``a 
     fraction'' in the matter preceding subparagraph (A), and
       (2) by adding at the end the following new sentence: ``This 
     paragraph shall not apply with respect to any facility 
     described in subsection (d)(2)(A)(ii).''.
       (f) Credit Allowed Against Regular and Minimum Tax.--
       (1) In general.--Subsection (c) of section 38 of the 
     Internal Revenue Code of 1986 (relating to limitation based 
     on amount of tax) is amended by redesignating paragraph (4) 
     as paragraph (5) and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Special rules for wind energy credit.--
       ``(A) In general.--In the case of any wind energy credit--

[[Page S1091]]

       ``(i) this section and section 39 shall be applied 
     separately with respect to such credit, and
       ``(ii) in applying paragraph (1) to such credit--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the wind 
     energy credit).

       ``(B) Wind energy credit.--For purposes of this subsection, 
     the term `wind energy credit' means the credit determined 
     under section 45 to the extent that such credit is 
     attributable to electricity produced--
       ``(i) at a facility which is originally placed in service 
     after the date of the enactment of this paragraph, and
       ``(ii) during the 4-year period beginning on the date that 
     such facility was originally placed in service.''.
       (2) Conforming amendments.--
       (A) Paragraph (2)(A)(ii)(II) of section 38(c) of such Code 
     is amended by striking ``or'' and inserting a comma and by 
     inserting ``, and the wind energy credit'' after ``employee 
     credit''.
       (B) Paragraph (3)(A)(ii)(II) of section 38(c) of such Code 
     is amended by inserting ``and the wind energy credit'' after 
     ``employee credit''.
       (g) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to electricity produced and sold after December 31, 2003, in 
     taxable years ending after such date.
       (2) Certain biomass facilities.--With respect to any 
     facility described in section 45(d)(3)(A)(ii) of the Internal 
     Revenue Code of 1986, as added by subsection (b)(1), which is 
     placed in service before January 1, 2004, the amendments made 
     by this section shall apply to electricity produced and sold 
     after December 31, 2003, in taxable years ending after such 
     date.
       (3) Credit rate and period for new facilities.--The 
     amendments made by subsection (c) shall apply to electricity 
     produced and sold after the date of the enactment of this 
     Act, in taxable years ending after such date.
       (4) Nonapplication of amendments to preeffective date 
     poultry waste facilities.--The amendments made by this 
     section shall not apply with respect to any poultry waste 
     facility (within the meaning of section 45(c)(3)(C), as in 
     effect on the day before the date of the enactment of this 
     Act) placed in service before January 1, 2004.
       (5) Wind credit allowed against regular and minimum tax.--
     The amendments made by subsection (f) shall apply to taxable 
     years ending after the date of the enactment of this Act.
       (h) GAO Study.--The Comptroller General of the United 
     States shall conduct a study on the market viability of 
     producing electricity from resources with respect to which 
     credit is allowed under section 45 of the Internal Revenue 
     Code of 1986 but without such credit. In the case of open-
     loop biomass and municipal solid waste resources, the study 
     should take into account savings associated with not having 
     to dispose of such resources. In conducting such study, the 
     Comptroller shall estimate the dollar value of the 
     environmental impact of producing electricity from such 
     resources relative to producing electricity from fossil fuels 
     using the latest generation of technology. Not later than 
     June 30, 2006, the Comptroller shall report on such study to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate.
       (i) Extension of Customs User Fees.--Section 13031(j)(3) of 
     the Consolidated Omnibus Budget Reconciliation Act of 1985 
     (19 U.S.C. 58c(j)(3)) is amended by striking ``March 31, 
     2004'' and inserting ``December 31, 2013''.
                                 ______
                                 
  SA 2367. Mr. AKAKA submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 715, strike line 1 and insert the following:

     SEC. 3044. MEDICAL TRANSPORTATION DEMONSTRATION GRANTS.

       (a) In General.--Chapter 53 is amended by adding at the end 
     the following:

     ``Sec. 5341. Medical transportation demonstration grants

       ``(a) Grants Authorized.--
       ``(1) In general.--The Secretary may award demonstration 
     grants to eligible entities to provide transportation 
     services to individuals to access dialysis treatments and 
     other medical treatments for diabetes or renal disease.
       ``(2) Eligible entities.--An entity shall be eligible to 
     receive a grant under this section if the entity--
       ``(A) meets the conditions described in section 501(c)(3) 
     of the Internal Revenue Code of 1986; or
       ``(B) is an agency of a State or unit of local government.
       ``(b) Use of Funds.--Grant funds received under this 
     section may be used to provide transportation services to 
     individuals to access dialysis treatments and other medical 
     treatments for diabetes or renal disease.
       ``(c) Application.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, at such place, and containing such 
     information as the Secretary may reasonably require.
       ``(2) Selection of grantees.--In awarding grants under this 
     section, the Secretary shall give preference to eligible 
     entities from communities with--
       ``(A) high incidence of diabetes;
       ``(B) high incidence of renal disease; and
       ``(C) limited access to dialysis facilities.
       ``(d) Rulemaking.--The Secretary shall issue regulations to 
     implement and administer the grant program established under 
     this section.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     for each of fiscal year 2005 through 2009 to carry out this 
     section, which shall remain available until expended.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 53 is amended by adding at the end the following:

``5341. Medical transportation demonstration grants.''.

     ``SEC. 3045. INTERMODAL PASSENGER FACILITIES.

                                 ______
                                 
  SA 2368. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 110, line 15, strike all through page 
     115, line 9.
                                 ______
                                 
  SA 2369. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 110, line 15, strike all through page 
     115, line 9.
                                 ______
                                 
  SA 2370. Ms. SNOWE (for herself and Ms. Collins) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of part 2 of subtitle A of title IV, add the 
     following:

     SEC. 4163. COMMERCIAL TRUCK HIGHWAY SAFETY DEMONSTRATION 
                   PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Commercial Truck Highway Safety Demonstration Program Act 
     of 2004''.
       (b) Findings.--Congress makes the following findings:
       (1) Public safety on the highways of the United States is a 
     paramount concern of all who use the highways and all who 
     prescribe public policy for the use of those highways, 
     including public policy on the operation of heavy commercial 
     trucks on highways.
       (2) Federal highway funding law effectively imposes a limit 
     of 80,000 pounds on the weight of vehicles permitted to use 
     Interstate System highways.
       (3) The administration of this law in Maine has forced 
     heavy tractor-trailer and tractor-semitrailer combination 
     vehicles traveling into Maine from neighboring States and 
     Canada to divert onto small State and local roads where 
     higher vehicle weight limits apply under Maine law.
       (4) The diversion of those vehicles onto such roads causes 
     significant economic hardships and safety challenges for 
     small communities located along those roads.
       (5) Permitting heavy commercial vehicles, including tanker 
     trucks carrying hazardous material and fuel oil, to travel on 
     Interstate System highways in Maine--
       (A) would enhance public safety by reducing--
       (i) the number of heavy vehicles that use town and city 
     streets in Maine; and
       (ii) as a result, the number of dangerous interactions 
     between those heavy vehicles and such other vehicles as 
     school buses and private vehicles; and
       (B) would reduce the net highway maintenance costs in Maine 
     because the Interstate System highways, unlike the secondary 
     roads of Maine, are built to accommodate heavy vehicles and 
     are, therefore, more durable.
       (c) Definitions.--In this section:
       (1) Covered interstate system highway.--
       (A) In general.--The term ``covered Interstate System 
     highway'' means a highway within the State of Maine that is 
     designated as a route on the Interstate System, except as 
     provided in subparagraph (B).
       (B) Exception.--The term does not include any portion of 
     highway that, as of the date of the enactment of this 
     section, is exempted from the requirements of subsection (a) 
     of section 127 of title 23, United States Code, by the last 
     sentence of such subsection.
       (2) Interstate system.--The term ``Interstate System'' has 
     the meaning given that term in section 101(a) of title 23, 
     United States Code.

[[Page S1092]]

       (d) Maine Truck Safety Demonstration Program.--The 
     Secretary of Transportation shall carry out a program, in the 
     administration of this section, to demonstrate the effects on 
     the safety of the overall highway network in the State of 
     Maine that would result from permitting vehicles described in 
     subsection (e)(2) to be operated on the Interstate System 
     highways within the State.
       (e) Waiver of Highway Funding Reduction Relating to Weight 
     of Vehicles Using Interstate System Highways.--
       (1) Prohibition relating to certain vehicles.--
     Notwithstanding section 127(a) of title 23, United States 
     Code, the total amount of funds apportioned to the State of 
     Maine under section 104(b)(1) of such title for any period 
     may not be reduced under such section 127(a) on the basis 
     that the State of Maine permits a vehicle described in 
     paragraph (2) to use a covered Interstate System highway.
       (2) Combination vehicles in excess of 80,000 pounds.--A 
     vehicle referred to in paragraph (1) is a vehicle having a 
     weight in excess of 80,000 pounds that--
       (A) consists of a 3-axle tractor unit hauling a single 
     trailer or semitrailer; and
       (B) does not exceed any vehicle weight limitation that is 
     applicable under the laws of the State of Maine to the 
     operation of such vehicle on highways in Maine not in the 
     Interstate System, as such laws are in effect on the date of 
     the enactment of this section.
       (3) Effective date and termination.--
       (A) Effective date.--
       (i) Date of satisfaction of administrative conditions by 
     maine.--The prohibition in paragraph (1) shall take effect on 
     the date on which the Secretary of Transportation notifies 
     the Commissioner of Transportation of the State of Maine in 
     writing that--

       (I) the Secretary has received the plan described in 
     subsection (f)(1); and
       (II) the Commissioner has established a highway safety 
     committee as described in subsection (f)(2) and has 
     promulgated rules and procedures for the collection of 
     highway safety data as described in subsection (f)(3).

       (ii) Permanent effect.--After taking effect, the 
     prohibition in paragraph (1) shall remain in effect unless 
     terminated under subparagraph (B).
       (B) Contingent termination.--The prohibition in paragraph 
     (1) shall terminate 3 years after the effective date 
     applicable under subparagraph (A) if, before the end of such 
     3-year period, the Secretary of Transportation--
       (i) determines that--

       (I) operation of vehicles described in paragraph (2) on 
     covered Interstate System highways in Maine has adversely 
     affected safety on the overall highway network in Maine; or
       (II) the Commissioner of Transportation of the State of 
     Maine has failed faithfully to use the highway safety 
     committee as described in subsection (f)(2)(A) or to collect 
     data as described in subsection (f)(3); and

       (ii) publishes the determination, together with the date of 
     the termination of the prohibition, in the Federal Register.
       (4) Consultation regarding termination for safety.--In 
     making a determination under paragraph (3)(B)(i)(I), the 
     Secretary of Transportation shall consult with the highway 
     safety committee established by the Commissioner in 
     accordance with subsection (f).
       (f) Responsibilities of the State of Maine.--For the 
     purposes of subsection (e), the State of Maine satisfies the 
     conditions of this subsection if the Commissioner of 
     Transportation of the State of Maine--
       (1) submits to the Secretary of Transportation a plan for 
     satisfying the conditions set forth in paragraphs (2) and 
     (3);
       (2) establishes and chairs a highway safety committee 
     that--
       (A) the Commissioner uses to review the data collected 
     pursuant to paragraph (3); and
       (B) consists of representatives of--
       (i) agencies of the State of Maine that have 
     responsibilities related to highway safety;
       (ii) municipalities of the State of Maine;
       (iii) organizations that have evaluation or promotion of 
     highway safety among their principal purposes; and
       (iv) the commercial trucking industry; and
       (3) collects data on the net effects that the operation of 
     vehicles described in subsection (e)(2) on covered Interstate 
     System highways have on the safety of the overall highway 
     network in Maine, including the net effects on single-vehicle 
     and multiple-vehicle collision rates for such vehicles.
                                 ______
                                 
  SA 2371. Ms. SNOWE (for herself and Ms. Collins) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1020, between lines 9 and 10, insert the following:

     SEC. 4663. USE OF CONGESTION MITIGATION AND AIR QUALITY 
                   IMPROVEMENT FUNDS FOR BOSTON TO PORTLAND 
                   PASSENGER RAIL SERVICE.

       Notwithstanding any other provision of law, funds 
     authorized to be appropriated under section 1101(5) that are 
     made available to the State of Maine may be used to support, 
     through September 30, 2009, the operation of passenger rail 
     service between Boston, Massachusetts, and Portland, Maine, 
     including any extension of such service.
                                 ______
                                 
  SA 2372. Ms. SNOWE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of subtitle A of title IV, add the following:

                Part 3--Miscellaneous Safety Provisions

     SEC. 4171. PROHIBITION ON PURCHASE, RENTAL, LEASE, OR USE OF 
                   NONCOMPLYING 15-PASSENGER VANS FOR USE AS 
                   SCHOOL BUSES.

       (a) Prohibition.--Section 30112(a) of title 49, United 
     States Code, is amended--
       (1) by inserting ``(1)'' before ``Except as provided in 
     this section''; and
       (2) by adding at the end the following:
       ``(2) Except as provided in this section, sections 30113 
     and 30114 of this title, and subchapter III of this chapter, 
     a person may not, after September 30, 2008, purchase, rent, 
     lease, or use any motor vehicle designed or used to transport 
     9 to 15 passengers that the person knows or reasonably should 
     know will be used to a significant extent to transport 
     preschool, primary, and secondary school students to or from 
     school or an event related to school, unless the motor 
     vehicle complies with the motor vehicle standards prescribed 
     for school buses under section 30125 of this title.''.
       (b) Enforcement.--Section 113(f) of title 49, United States 
     Code, is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) the enforcement of the prohibition under section 
     30112(a)(2) of this title; and''.
       (c) Limitation on Application.--The prohibition under 
     section 30112(a)(2) of title 49, United States Code, as added 
     by subsection (a), shall not apply to any purchase, rental, 
     lease, or use of a motor vehicle required under a contract 
     that was entered into before the date of enactment of this 
     Act.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the prohibition under section 30112(a)(2) of title 49, United 
     States Code, as added by subsection (a).

     SEC. 4172. FEDERAL OUTREACH EFFORTS.

       Between the date of enactment of this Act and October 1, 
     2008, the Secretary of Transportation, in consultation with 
     the Administrator of the National Highway Traffic Safety 
     Administration and the Administrator of the Federal Motor 
     Carrier Safety Administration, shall conduct an aggressive 
     outreach campaign regarding the use of motor vehicles 
     designed or used to transport 9 to 15 passengers as school 
     buses. The outreach campaign shall be designed to ensure the 
     broadest practicable dissemination of outreach campaign 
     information to--
       (1) State departments of transportation;
       (2) State departments of education;
       (3) local school districts;
       (4) public and private school principals and 
     administrators; and
       (5) public and private child care providers.

     SEC. 4173. PENALTY.

       Section 30165(a)(1) of title 49, United States Code, is 
     amended--
       (1) by striking ``A'' before ``person'' and inserting ``(A) 
     Except as provided in subparagraph (B) of this paragraph, 
     a''; and
       (2) by adding at the end the following:
       ``(B) The maximum amount of a civil penalty under this 
     paragraph shall be $25,000, in the case of--
       ``(i) the manufacture, sale, offer for sale, introduction 
     or delivery for introduction into interstate commerce, or 
     importation of a schoolbus or schoolbus equipment (as those 
     terms are defined in section 30125(a) of this title) in 
     violation of section 30112(a)(1) of this title; or
       ``(ii) a violation of section 30112(a)(2) of this title.
       ``(C) Subparagraph (B) shall not affect the maximum penalty 
     that may be imposed under subparagraph (A) for a related 
     series of violations.
       ``(D) Notwithstanding section 3302(b) of title 31, 
     penalties collected under subparagraph (B)--
       ``(i) shall be credited as offsetting collections to the 
     account that funds the enforcement of subparagraph (B);
       ``(ii) shall be available for expenditure only to pay the 
     costs of such enforcement; and
       ``(iii) shall remain available until expended.''.
                                 ______
                                 
  SA 2373. Ms. SNOWE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of title III add the following new section:

     SEC. 3045. FUNDS FOR CAPITAL INVESTMENT FOR PUBLIC 
                   TRANSPORTATION.

       (a) Repeal of Authority to Make Loans.--Section 5309(a) is 
     amended--

[[Page S1093]]

       (1) in paragraph (1), by striking ``and loans''; and
       (2) in paragraph (2), by striking ``and loans''.
       (b) Grants for Ferryboat Projects.--Paragraph (1)(F) of 
     such section is amended to read as follows:
       ``(F) capital projects to replace, rehabilitate, and 
     purchase buses, ferryboats, and related equipment and to 
     construct bus-related and ferryboat-related facilities;''.
       (c) Repeal of Authority to Make Loans for Real Property 
     Interests.--Section 5309(b) is repealed.
                                 ______
                                 
  SA 2374. Ms. SNOWE (for herself, Mr. Nelson of Florida, Ms. Collins, 
Mr. Graham of Florida, and Mr. Johnson) submitted an amendment intended 
to be proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill 
S. 1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of part 1 of subtitle B of title IV, add the 
     following:

     SEC. 4251. INCREASED MCSAP PARTICIPATION IMPACT STUDY.

       (a) In General.--If a State that did not receive its full 
     allocation of funding under the Motor Carrier Safety 
     Assistance Program during fiscal year 2003 agrees to enter 
     into a cooperative agreement with the Secretary of 
     Transportation to evaluate the safety impact, costs, and 
     benefits of allowing such State to continue to participate 
     fully in the Motor Carrier Safety Assistance Program, then 
     the Secretary of Transportation shall allocate to that State 
     the full amount of funds to which it would otherwise be 
     entitled for fiscal years 2004, 2005, 2006, 2007, 2008, and 
     2009. The Secretary of Transportation may not add conditions 
     to the cooperative agreement other than those directly 
     relating to the accurate and timely collection of inspection 
     and crash data sufficient to ascertain the safety and 
     effectiveness of such State's program.
       (b) Requirements.--
       (1) Report.--The State shall annually submit to the 
     Secretary of Transportation, the results of the safety 
     evaluations described in subsection (a).
       (2) Termination by secretary.--If the Secretary of 
     Transportation finds that a cooperative agreement entered 
     into under this section is not in the public interest based 
     on the results of the annual evaluations after 2 years of 
     full participation by the State, the Secretary of 
     Transportation may terminate the cooperative agreement.
       (c) Prohibition of Adoption of Lesser Standards.--No State 
     may enact or implement motor carrier safety regulations that 
     are determined by the Secretary of Transportation to be less 
     strict than those in effect as of September 30, 2003.
                                 ______
                                 
  SA 2375. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1062, beginning with line 11, strike through line 2 
     on page 1064.
                                 ______
                                 
  SA 2376. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 115, between lines 9 and 10, insert the following:

     SEC. 1309. USE OF PROCEEDS FROM CERTAIN REAL PROPERTY SALES.

       Subsection (c) of section 156 of title 23, United States, 
     is amended to read as follows:
       ``(c) Use of Federal Share of Income.--The Federal share of 
     net proceeds obtained by a State under subsection (a) shall 
     be treated as Federal funds and applied by the State to meet 
     the Federal share for projects eligible to receive funding 
     under this title.''.
                                 ______
                                 
  SA 2377. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In section 139 of title 23, United States Code, as added by 
     section 1201 of the amendment--
       (1) strike ``Set-aside.--'' in subsection (b)(2) and insert 
     ``Funding.--'';
       (2) strike ``of the amounts made available'' in subsection 
     (b)(2) and insert ``the amounts made available'';
       (3) strike ``$439,000,000'' in subsection (b)(2);
       (4) strike ``allocated'' in subsection (c)(1)(A) and insert 
     ``apportioned'';
       (5) strike ``subsection (d).'' in subsection (c)(1)(B) and 
     insert ``subsection (e).'';
       (6) redesignate subsections (d) and (e) as subsections (e) 
     and (f), respectively, and insert the following after 
     subsection (c):
       ``(d) Distribution of Funds.--On October 1 of each fiscal 
     year, the Secretary shall apportion the funds available for 
     allocation under this section among the several States 
     according to the ratio that--
       ``(1) the total funds apportioned to each State under the 
     Federal-aid Highway Program, bears to
       ``(2) the total funds apportioned to all States under the 
     Federal-aid Highway Program.''; and
       (7) strike subsection (e), as redesignated, and insert the 
     following:
       ``(e) Redistribution of Allocated Funds and Obligation 
     Authority.--On the date that is 180 days after the date of 
     apportionment, or as soon thereafter as practicable, for each 
     fiscal year, the Secretary shall--
       ``(1) withdraw--
       ``(A) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(B) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(2) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(A) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(B) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.''.
       ``(f) Distribution of Funds.--
       ``(1) Infrastructure performance and maintenance program 
     distribution.--Notwithstanding section 1101(13) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2004, and in lieu of the amounts authorized by that 
     section, there are authorized to be appropriated out of the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     carrying out the infrastructure performance and maintenance 
     program under this section--
       ``(A) $2,000,000,000 for each of fiscal years 2004 and 
     2005; and
       ``(B) $1,750,000,000 for each of fiscal years 2006, 2007, 
     and 2008.
                                 ______
                                 
  SA 2378. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In section 139 of title 23, United States Code, as added by 
     section 1201 of the amendment--
       (1) strike ``Set-aside.--'' in subsection (b)(2) and insert 
     ``Funding.--'';
       (2) strike ``of the amounts made available'' in subsection 
     (b)(2) and insert ``the amounts made available'';
       (3) strike ``$439,000,000'' in subsection (b)(2);
       (4) strike ``allocated'' in subsection (c)(1)(A) and insert 
     ``apportioned'';
       (5) strike ``subsection (d).'' in subsection (c)(1)(B) and 
     insert ``subsection (e).'';
       (6) redesignate subsections (d) and (e) as subsections (e) 
     and (f), respectively, and insert the following after 
     subsection (c):
       (d) Distribution of Funds.--On October 1 of each fiscal 
     year, the Secretary shall apportion the funds available for 
     allocation under this section among the several States 
     according to the ratio that--
       ``(1) the percentage of tax payments attributable to 
     highway users in each State paid into the Highway Trust Fund 
     (other than the Mass Transit Account), bears to
       ``(2) the 100 percent of tax payments attributable to 
     highway users in all States paid into the Highway Trust Fund 
     (other than the Mass Transit Account).''; and
       (7) strike subsection (e), as redesignated, and insert the 
     following:
       ``(e) Redistribution of Allocated Funds and Obligation 
     Authority.--On the date that is 180 days after the date of 
     apportionment, or as soon thereafter as practicable, for each 
     fiscal year, the Secretary shall--
       ``(1) withdraw--
       ``(A) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(B) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(2) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(A) have fully obligated all amounts, allocated under 
     this section for the fiscal year; and
       ``(B) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(f) Application With Section 105.--Notwithstanding 
     section 105(a)(2)(H) of this title, section 105(a) shall not 
     apply to funds apportioned under this section.''.
       ``(g) Distribution of Funds.--
       ``(1) Infrastructure performance and maintenance program 
     distribution.--Notwithstanding section 1101(13) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2004, and in lieu of the amounts authorized by that 
     section, there are authorized to be appropriated out of the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     carrying out the infrastructure performance and maintenance 
     program under this section--

[[Page S1094]]

       ``(A) $2,000,000,000 for each of fiscal years 2004 and 
     2005; and
       ``(B) $1,750,000,000 for each of fiscal years 2006, 2007, 
     and 2008.
                                 ______
                                 
  SA 2379. Mr. McCAIN (for himself and Mr. Hollings) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 299, strike lines 2 through 8.
                                 ______
                                 
  SA 2380. Mr. McCAIN (for himself and Mr. Hollings) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 508, beginning with line 1, strike through line 25 
     on page 515.
                                 ______
                                 
  SA 2381. Mr. McCAIN (for himself and Mr. Hollings) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highways safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 287, beginning with line 12, strike through line 2 
     on page 288.
                                 ______
                                 
  SA 2382. Mr. McCAIN (for himself and Mr. Hollings) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highways safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 79, beginning with line 11, strike through line 3 
     on page 80.
                                 ______
                                 
  SA 2383. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highways safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike section 4601.
                                 ______
                                 
  SA 2384. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highways safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1005, beginning with line 13, strike through line 9 
     on page 1020 and insert the following:

                   Subtitle F--Amtrak Reauthorization

     SEC. 4601. AUTHORIZATION OF APPROPRIATIONS.

       The text of section 24104 of title 49, United States Code, 
     is amended to read as follows:
       ``There are authorized to be appropriated to the Secretary 
     of Transportation $2,000,000,000 for each of fiscal years 
     2004, 2005, 2006, 2007, 2008, and 2009 for the benefit of 
     intercity rail passenger service for operating and capital 
     expenses.''.
                                 ______
                                 
  SA 2385. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In section 139 of title 23, United States Code, as added by 
     section 1201 of the amendment--
       (1) strike ``Set-aside.--'' in subsection (b)(2) and insert 
     ``Funding.--'';
       (2) strike ``of the amounts made available'' in subsection 
     (b)(2) and insert ``the amounts made available'';
       (3) strike ``$439,000,000'' in subsection (b)(2);
       (4) strike ``allocated'' in subsection (c)(1)(A) and insert 
     ``apportioned'';
       (5) strike ``subsection (d).'' in subsection (c)(1)(B) and 
     insert ``subsection (e).'';
       (6) redesignate subsections (d) and (e) as subsections (e) 
     and (f), respectively, and insert the following after 
     subsection (c):
       ``(d) Distribution of Funds.--On October 1 of each fiscal 
     year, the Secretary shall apportion the funds available for 
     allocation under this section among the several States 
     according to the ratio that--
       ``(1) the total funds apportioned to each State under the 
     Federal-aid Highway Program, bears to
       ``(2) the total funds apportioned to all States under the 
     Federal-aid Highway Program.''; and
       (7) strike subsection (e), as redesignated, and insert the 
     following:
       ``(e) Redistribution of Allocated Funds and Obligation 
     Authority.--On the date that is 180 days after the date of 
     apportionment, or as soon thereafter as practicable, for each 
     fiscal year, the Secretary shall--
       ``(1) withdraw--
       ``(A) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(B) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(2) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(A) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(B) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.''.
                                 ______
                                 
  SA 2386. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In section 139 of title 23, United States Code, as added by 
     section 1201 of the amendment--
       (1) strike ``Set-Aside.--'' in subsection (b)(2) and insert 
     ``Funding.--'';
       (2) strike ``of the amounts made available'' in subsection 
     (b)(2) and insert ``the amounts made available'';
       (3) strike ``$439,000,000'' in subsection (b)(2);
       (4) strike ``allocated'' in subsection (c)(1)(A) and insert 
     ``apportioned'';
       (5) strike ``subsection (d).'' in subsection (c)(1)(B) and 
     insert ``subsection (e).'';
       (6) redesignate subsections (d) and (e) as subsections (e) 
     and (f), respectively, and insert the following after 
     subsection (c):
       ``(d) Distribution of Funds.--On October 1 of each fiscal 
     year, the Secretary shall apportion the funds available for 
     allocation under this section among the several States 
     according to the ratio that--
       ``(1) the percentage of tax payments attributable to 
     highway users in each State paid into the Highway Trust Fund 
     (other than the Mass Transit Account), bears to
       ``(2) the 100 percent of tax payments attributable to 
     highway users in all States paid into the Highway Trust Fund 
     (other than the Mass Transit Account).''; and
       (7) strike subsection (e), as redesignated, and insert the 
     following:
       ``(e) Redistribution of Allocated Funds and Obligation 
     Authority.--On the date that is 180 days after the date of 
     apportionment, or as soon thereafter as practicable, for each 
     fiscal year, the Secretary shall--
       ``(1) withdraw--
       ``(A) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(B) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(2) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(A) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(B) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(f) Application With Section 105.--Notwithstanding 
     section 105(a)(2)(H) of this title, section 105(a) shall not 
     apply to funds apportioned under this section.''.
                                 ______
                                 
  SA 2387. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highways safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

     SEC. 1104. EQUITY PROVISION.

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

     ``Sec. 105. Equity provision

       ``(a) General Rule.--For each of fiscal years 2004 through 
     2009, the Secretary shall ensure that the percentage of 
     apportionments of each State is sufficient to ensure that, 
     based on the percentage of tax payments attributable to 
     highway users in each State paid into the Highway Trust Fund 
     (other than the Mass Transit Account) in the latest fiscal 
     year for which data are available, no State's percentage 
     return from the Highway Trust Fund is less than 100 percent.
       ``(b) Apportionments.--In making an apportionment described 
     in subsection (a) for a fiscal year, the Secretary shall 
     ensure that the rate of return of each State from the Highway 
     Trust Fund includes the total apportionments made for the 
     fiscal year for--
       ``(1) the Interstate maintenance program under section 119;

[[Page S1095]]

       ``(2) the National Highway System under section 103;
       ``(3) the bridge program under section 144;
       ``(4) the surface transportation program under section 133;
       ``(5) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(6) the highway safety improvement program under section 
     148;
       ``(7) the Appalachian development highway system program 
     under section 170;
       ``(8) the recreational trails program under section 206;
       ``(9) the metropolitan planning program under section 
     104(f);
       ``(10) the safe routes to school program under section 150; 
     and
       ``(11) the railway-highway crossings under section 130.
       ``(c) Adjustments.--
       ``(1) In general.--If in any of fiscal years 2004 through 
     2009, the total of the amounts authorized under (a) and (b) 
     is more than the amounts listed in paragraph (2), then the 
     Secretary shall proportionally reduce the amounts apportioned 
     under paragraphs (1) through (6) so that the total equals the 
     amount listed under paragraph (2). In making such reductions, 
     the Secretary shall ensure that no State's percentage return 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) is less than 100 percent.
       ``(2) Amounts.--The amount listed in this paragraph is as 
     follows:
       ``(A) the amount for 2004 is $35,419,162,743.
       ``(B) the amount for 2005 is $38,142,851,998.
       ``(C) the amount for 2006 is $39,323,247,546.
       ``(D) the amount for 2007 is $39,084,010,054.
       ``(E) the amount for 2008 is $39,386,404,896.
       ``(F) the amount for 2009 is $44,789,782,206.
       ``(3) Negative amounts.--If the reduction required by 
     paragraph (1) for any fiscal year would result in zero or a 
     negative number, then the Secretary shall apportion the 
     amount for that fiscal year set forth in paragraph (2) among 
     the several States using the formula in subsection (a).
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated out of the Highway Trust Fund 
     (other than the Mass Transit Account) such sums as may be 
     necessary to carry out this section for each of fiscal years 
     2004 through 2009.
       ``(e) Programmatic Distribution of Funds.--
       ``(1) Initial distribution.--The Secretary shall apportion 
     $2,500,000,000 of the amounts made available under this 
     section to each State in accordance with section 119.
       ``(2) Remainder distribution.--The Secretary shall 
     apportion the remainder of the amounts made available under 
     this section so that the amount apportioned to each State for 
     each program referred to in paragraphs (1) through (6) of 
     subsection (b) is equal to the amount determined by 
     multiplying the amount to be apportioned under this paragraph 
     by the ratio that--
       (A) the amount of funds apportioned to each State for each 
     program referred to in those paragraphs for a fiscal year, 
     bears to
       (B) the total amount of funds apportioned to each State for 
     such program for that fiscal year.''.
       (b) Conforming Amendments.--
       (1) Section 104(b) of title 23, United States Code, is 
     amended--
       (A) by inserting ``50 percent of'' after ``Highway, and'' 
     in paragraph (1)(A);
       (B) by redesignating subparagraph (B) of paragraph (1) as 
     subparagraph (C) and inserting the following after 
     subparagraph (A):
       ``(B) The remaining 50 percent of the funds apportioned 
     under subparagraph (A) shall be apportioned in the ratio 
     described in paragraph (3)(A).'';
       (C) by striking paragraph (3)(A) and inserting the 
     following:
       ``(A) In general.--For the surface transportation program, 
     in the ratio that--
       ``(i) the estimated tax payments attributable to highway 
     users in each State paid into the Highway Trust fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available, bears to
       ``(ii) the estimated tax payments attributable to highway 
     users in all States paid into the Highway Trust fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available.'';
       (D) by striking ``For'' in paragraph (4) and inserting 
     ``Fifty percent of the funds for''; and
       (E) by adding at the end of paragraph (4) the following:
       ``(The remaining 50 percent of such funds shall be 
     apportioned in the ratio described in paragraph (3)(A).''.
       (2) The chapter analysis for chapter 1 of title 23, United 
     States Code, is amended by striking the item relating to 
     section 105 and inserting the following:

``105. Equity provision''.

       Strike paragraph (13) of section 1101 of the amendment and 
     redesignate paragraphs (14) and (15) as paragraphs (13) and 
     (14), respectively.
                                 ______
                                 
  SA 2388. Mrs. HUTCHISON (for herself, Mr. Kyl, Mr. Levin, Mr. Graham 
of Florida, Mr. McCain, Ms. Stabenow, and Mrs. Feinstein) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       In section 139 of title 23, United States Code, as added by 
     section 1201 of the amendment--
       (1) strike ``Set-aside.--'' in subsection (b)(2) and insert 
     ``Funding.--''
       (2) strike ``of the amounts made available'' in subsection 
     (b)(2) and insert ``the amounts made available'';
       (3) strike ``$439,000,000'' in subsection (b)(2);
       (4) strike ``allocated'' in subsection (c)(1)(A) and insert 
     ``apportioned'';
       (5) strike ``subsection (d).'' in subsection (c)(1)(B) and 
     insert ``subsection (e).'';
       (6) redesignate subsections (d) and (e) as subsections (e) 
     and (f), respectively, and insert the following after 
     subsection (c):
       ``(d) Distribution of Funds.--
       ``(1) Infrastructure performance and maintenance program 
     distribution.--Nothwithstanding subsection 1101(13) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004, and in lieu of the amounts authorized by 
     that section, there are authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     for carrying out the infrastructure performance and 
     maintenance program under this section--
       ``(A) $2,000,000,000 for each of fiscal years 2004 and 
     2005; and
       ``(B) $1,750,000,000 for each of fiscal years 2006, 2007, 
     and 2008.
       ``(2) Equity distribution.--On October 1 of each fiscal 
     year, the Secretary shall reserve a sufficient amount of the 
     funding available to carry out this section to provide a 
     final equity adjustment, after making the apportionment under 
     section 105 of this title, for each State to increase the 
     percentage return of all highway apportionments, as compared 
     to the tax payments attributable to the States paid into the 
     Highway Trust Fund (other than the Mass Transit Account), 
     to--
       ``(A) for fiscal year 2005, 91 percent;
       ``(B) for fiscal year 2006, 92 percent;
       ``(C) for fiscal year 2007, 93 percent;
       ``(D) for fiscal year 2008, 94 percent;
       ``(E) for fiscal year 2009, 95 percent.
       ``(3) Remainder distribution.--On October 1 of each fiscal 
     year, the Secretary shall apportion the funds available for 
     allocation under this section among the several States, after 
     the application of paragraph (1), according to the ratio 
     that--
       ``(1) the percentage of tax payments attributable to 
     highway users in each State paid into the Highway Trust Fund 
     (other than the Mass Transit Account), bears to
       ``(2) 100 percent of tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account).''; and
       (7) strike subsection (e), as redesignated, and insert the 
     following:
       ``(e) Redistribution of Allocated Funds and Obligation 
     Authority.--On the date that is 180 days after the date of 
     apportionment, or as soon thereafter as practicable, for each 
     fiscal year, the Secretary shall--
       ``(1) withdraw--
       ``(A) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(B) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(13) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(2) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(A) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(B) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(f) Application with Section 105.--Notwithstanding 
     section 105(a)(2)(H) of this title, section 105(a) shall not 
     apply to funds apportioned under this section.''.
                                 ______
                                 
  SA 2389. Mrs. HUTCHISON submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title IV, add the following:

     SEC. 4663. AMTRAK CAPITAL EXPENDITURES NORTHEAST CORRIDOR 
                   LIMIT.

       Notwithstanding any other provision of law, Amtrak may not 
     expend more than 50 percent of its total expenditures for 
     capital projects in any fiscal year for such projects on any 
     one Corridor.
                                 ______
                                 
  SA 2390. Mrs. HUTCHISON submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ------. SECTION 49(F) POLICY ON LANDS, WILDLIFE AND 
                   WATERFOWL REFUGES, AND HISTORIC SITES.

       (a) In General.--Section 138 of title 23, United States 
     Code, and section 303 of title

[[Page S1096]]

     49, United States Code, are each amended by adding at the end 
     the following matter with appropriate subsection designation:
       ``(  ) Treatment of Historic Sites.--The requirements of 
     this section are deemed to be satisfied where the treatment 
     of an historic site (other than a National Historic Landmark) 
     has been agreed upon in accordance with section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f). The 
     Secretary, in consultation with the Advisory Council on 
     Historic Preservation, shall develop administrative 
     procedures to review the implementation of this subsection to 
     ensure that the objectives of the National Historic 
     Preservation Act are being met.''.
       (b) Administration.--
       (1) Approval of state requests for funds.--The Secretary of 
     Transportation may approve a request by a State to provide 
     funds made available under chapter 1 of title 23, United 
     States Code, to a State historic preservation office, Tribal 
     historic preservation office, or to the Advisory Council on 
     Historic Preservation to provide the resources necessary to 
     expedite the historic preservation review and consultation 
     process under section 138 of title 23, section 303 of title 
     49, and under section 470f of title 16, United States Code.
       (2) State funding.--The Secretary shall encourage States to 
     provide such funding to State historic preservation officers, 
     Tribal historic preservation officers or the Advisory Council 
     on Historic Preservation where the investment of such funds 
     will accelerate completion of a project or classes of 
     projects or programs by reducing delays in historic 
     preservation review and consultation.
       (3) Additional amounts.--The Secretary may approve requests 
     under paragraph (1) only--
       (A) for the additional amounts that the Secretary 
     determines are necessary for a State historic preservation 
     office, Tribal historic preservation office, or the Advisory 
     Council on Historic Preservation to expedite the review and 
     consultation process; and
       (B) only where the Secretary determines that such 
     additional amounts will permit completion of the historic 
     preservation process in less than the time customarily 
     required for such process.
                                 ______
                                 
  SA 2391. Mrs. HUTCHISON submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of title IV, add the following:

     SEC. 4663. AMTRAK EXPENDITURES NORTHEAST CORRIDOR LIMIT.

       Notwithstanding any other provision of law, Amtrak may not 
     expend more than 50 percent of its total expenditures for 
     capital projects and operations in any fiscal year for such 
     projects and operations on any one Corridor.
                                 ______
                                 
  SA 2392. Mr. BURNS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 487, after line 23, insert the following:

     SEC. 2105. WIDEBAND MULTI-BAND MOBILE PILOT PROJECTS.

       (a) In General.--The Secretary shall make grants for 
     wideband multi-media mobile pilot projects to demonstrate 
     emergency communications systems that provide wideband, two-
     way information transfer capabilities utilizing the public 
     safety spectrum made available by the Federal Communications 
     Commission in the 700 MHz radio frequency band and that are 
     compliant with the public safety wideband data standard TIA-
     902 as recommended as the wideband data interoperability 
     standard by the Public Safety National Coordinating Committee 
     to the Federal Communications Commission.
       (b) Locations.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall establish 
     locations for pilot projects under this section. In 
     determining pilot project locations, the Secretary shall 
     certify that pilot project locations awarded grants have 
     spectrum available for public safety purposes and are in the 
     700 MHz band pursuant to the Federal Communications 
     Commission's rules.
       (c) Limit on Time.--Grants under this section shall be 
     awarded not later than 12 months after the date of enactment 
     of this Act.
       (d) Funding.--Of amounts made available under section 
     2001(a)(4), $40,000,000 shall be available to carry out this 
     section.
                                 ______
                                 
  SA 2393. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 764, between lines 4 and 5, insert the following 
     new subsection:
       ``(i) Minimum Apportionment and Criteria.--
       ``(1) Minimum apportionment.--Notwithstanding any other 
     provision of this section, the Secretary shall grant to any 
     State that qualifies under paragraph (2) and has not 
     received, as a result of other provisions of this section, at 
     least \1/2\ of 1 percent of the total funds authorized for a 
     fiscal year for grants under this section, such additional 
     funds as are necessary to result in such State receiving \1/
     2\ of 1 percent of the total funds authorized for grants 
     under this section for that fiscal year. Funds for grants 
     under this subsection shall be derived from pro-rata 
     reduction of grant amounts that otherwise would be awarded 
     pursuant to other subsections of this section.
       ``(2) Criteria.--To qualify for a grant under this 
     subsection, a State--
       ``(A) shall meet the requirements of subsection (a)(2) of 
     this section; and
       ``(B) shall--
       ``(i) meet 4 of the 7 criteria for qualifying for grants 
     under subsection (b)(1) of this section (as that subsection 
     was as in effect for fiscal year 2003 funding);
       ``(ii) for the most recent year for which data is 
     available, have an alcohol-related fatality rate per 100 
     million vehicle miles traveled that is either lower than the 
     national average for that year or lower than the rate in that 
     State in the second most recent year for which data is 
     available; or
       ``(iii) for the most recent 3 years for which data is 
     available, have an average alcohol-related fatality rate per 
     100 million vehicle miles traveled that is either lower than 
     the average of the national rate for those 3 years or lower 
     than the average of such rate in that State for the fourth, 
     fifth, and sixth most recent years for which data is 
     available.
       ``(3) Uses of funds.--Grants under this subsection may be 
     used for--
       ``(A) any activity that was an eligible use of grants under 
     this section for fiscal year 2003;
       ``(B) any activity otherwise eligible under this section; 
     and
       ``(C) any other activity undertaken by the State for the 
     purpose of reducing impaired driving unless disapproved by 
     the Secretary on the basis that it bears no relation to that 
     objective.''
                                 ______
                                 
  SA 2394. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, add the following:

     SEC. 1106. ADDITIONAL FUNDING.

       (a) In General.--In addition to the funds made available 
     for each surface transportation program by this Act and 
     amendments made by this Act, there shall be available for 
     each such program for the period beginning on the date of 
     enactment of this Act and ending September 30, 2009, from the 
     general fund of the Treasury, an amount equal to the 
     difference between--
       (1) the amount of funds made available for the program 
     under this Act (other than this section) and amendments made 
     by this Act; and
       (2) the amount of funds made available for the program 
     under the Transportation Equity Act for the 21st Century 
     (Public Law 105-178) and amendments made by that Act.
       (b) Administrative Action.--
       (1) In general.--Not later than 2 business days after the 
     date of enactment of this Act, the Secretary of the Treasury 
     shall transfer to the Secretary the total amount made 
     available for Federal-aid highway programs by subsection (a).
       (2) Receipt, acceptance, and treatment of funds.--The 
     Secretary shall--
       (A) be entitled to receive, and shall accept, the funds 
     transferred under paragraph (1), without further 
     appropriation; and
       (B) apportion, allocate, deduct, or set aside, as the case 
     may be, in accordance with title 23, United States Code (as 
     in effect on the day before the date of enactment of this 
     Act), the funds transferred under paragraph (1).
       (c) Obligation Authority.--Funds made available by this 
     section shall be available for obligation in the same manner 
     as if the funds were apportioned under chapter 1 of title 23, 
     United States Code.
                                 ______
                                 
  SA 2395. Mr. McCAIN (for himself and Mr. Hollings) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1020, between lines 9 and 10, insert the following:

                Subtitle C--Intermodal Equipment Safety

     SEC. 181. FINDINGS.

       The Congress finds the following:
       (1) Promoting the safety of our Nation's highways is a 
     national priority. The Department of Transportation has 
     promulgated the Federal Motor Carrier Safety Regulations to 
     further this purpose. The systematic maintenance, repair, and 
     inspection of equipment

[[Page S1097]]

     traveling in interstate and foreign commerce are an integral 
     part of the safety regime.
       (2) Motor carriers and their drivers that receive 
     intermodal chassis and trailers from others, generally do not 
     have an opportunity to perform the systematic maintenance of 
     such equipment.
       (3) Available evidence indicates that intermodal chassis 
     and trailers operated on the highways in interstate and 
     foreign commerce are sometimes out of compliance with the 
     Federal Motor Carrier Safety Regulations, but no party is 
     clearly held responsible for the systematic maintenance of 
     the intermodal chassis and trailers prior to operation on the 
     highways.
       (4) Responsibility for compliance with the Federal Motor 
     Carrier Safety Regulations must be shared between the owners 
     or others that make intermodal chassis and trailers available 
     for transport and the motor carriers that transport such 
     equipment.

     SEC. 182. DEFINITIONS.

       Section 31132 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(11) `Intermodal equipment' means equipment that is 
     commonly used in the intermodal transportation of freight 
     over public highways as an instrumentality of interstate or 
     foreign commerce, including trailers, chassis, and any 
     similar devices.
       ``(12) `Intermodal equipment interchange agreement' means a 
     written document executed by an intermodal equipment provider 
     or its agent and a motor carrier or its agent, whose primary 
     purpose it is to which establish the responsibilities and 
     liabilities of both parties with respect to the interchange 
     of the intermodal equipment.
       ``(13) `Intermodal equipment provider' means any party with 
     any legal right, title, interest, or contractual obligation 
     in intermodal equipment that interchanges such equipment to a 
     motor carrier and registers such equipment with the United 
     States Department of Transportation pursuant to this 
     subtitle.
       ``(14) `Interchange' means the act of providing intermodal 
     equipment to a motor carrier for the purpose of transporting 
     the equipment for loading or unloading by any party or 
     repositioning the equipment for the benefit of the equipment 
     provider. Such term does not mean the leasing of equipment to 
     a motor carrier for use in the motor carrier's over-the-road 
     freight hauling operations.''.

     SEC. 183. JURISDICTION OVER EQUIPMENT PROVIDERS; PROHIBITION 
                   ON RETALIATION.

       Section 31136 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(g) Inspection, Repair, and Maintenance of Intermodal 
     Equipment.--
       ``(1) Authority to regulate.--The term `commercial motor 
     vehicle' as defined in section 31132(1) of this title 
     includes intermodal equipment commonly used in the road 
     transportation of intermodal freight, including trailers, 
     chassis and associated devices. The Secretary, or an employee 
     designated by the Secretary, may on demand and display of 
     proper credentials to inspect intermodal equipment and 
     inspect and copy related maintenance and repair records.
       ``(2) Responsibility for maintenance, repair, and 
     inspection.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     notwithstanding any provision in an intermodal equipment 
     interchange agreement to the contrary, an intermodal 
     equipment provider shall be responsible for the 
     systematic inspection, maintenance, and repair of 
     intermodal equipment interchanged, or intended for 
     interchange, to ensure that such equipment complies with 
     all applicable Federal Motor Carrier Safety Regulations.
       ``(B) Motor carrier leases.--Notwithstanding subparagraph 
     (A), a motor carrier that leases intermodal equipment from an 
     intermodal equipment provider shall be responsible for the 
     systematic maintenance, repair, and inspection of such 
     equipment for the duration of the lease.
       ``(3) Negligence; willful misconduct.--Notwithstanding 
     paragraph (2), an intermodal equipment provider shall not be 
     responsible for noncompliance with the Federal Motor Carrier 
     Safety Regulations caused by the negligence or willful 
     misconduct of a motor carrier or its agent to which 
     intermodal equipment has been interchanged.
       ``(h) Prohibition on Retaliation.--An intermodal equipment 
     provider may not take any action to threaten, coerce, 
     discipline, discriminate, or otherwise retaliate against a 
     driver or motor carrier in response to a report or complaint 
     made by a driver or motor carrier that the maintenance or 
     repair of intermodal equipment intended for interchange, or 
     actually interchanged, failed to comply with the applicable 
     Federal Motor Carrier Safety Regulations. It shall not be a 
     violation of this subsection for an intermodal equipment 
     provider to refuse to interchange intermodal equipment to a 
     driver or motor carrier for legitimate business reasons, as 
     determine by the Secretary, including a driver's or motor 
     carrier's failure to pay debts owed to an intermodal 
     equipment provider.''.

     SEC. 184. PREEMPTION OF STATE LAWS.

       (a) Compatibility.--
       (1) The first sentence of section 31141(c)(1) of title 49, 
     United States Code, is amended to read as follows: ``Except 
     as provided by subsection (h) of this section, the Secretary 
     shall review State laws and regulations on commercial motor 
     vehicle safety.''.
       (2) Section 31141 of title 49, United States Code, is 
     amended by adding at the end the following:
       ``(h) Preemption Generally.--Except as otherwise authorized 
     by Federal law, a law, regulation, order or other requirement 
     of a State, a political subdivision of a State, or a tribal 
     organization, is preempted if compliance with such law, 
     regulation, order, or other requirement would exceed or 
     otherwise be inconsistent with a requirement imposed under or 
     pursuant to this chapter.''.

     SEC. 185. IMPLEMENTING REGULATIONS.

       (a) Regulations.--the Secretary of Transportation, after 
     notice and opportunity for comment, shall issue regulations 
     implementing the provisions of section 31136(g) of title 49, 
     United States Code. The regulations shall be issued as part 
     of the Federal Motor Carrier Safety Regulations of the 
     Department of Transportation and shall include--
       (1) a requirement to identify providers of intermodal 
     equipment that is interchanged or intended for interchange to 
     motor carriers in intermodal transportation;
       (2) a requirement to match such intermodal equipment 
     readily to the intermodal equipment provider through a unique 
     identifying number;
       (3) a requirement to ensure that each intermodal equipment 
     provider maintains a system of maintenance and repair records 
     for such equipment;
       (4) a requirement to evaluate the compliance of intermodal 
     equipment providers with the applicable Federal Motor Carrier 
     Safety Regulations;
       (5) a provision that--
       (A) establishes a civil penalty structure consistent with 
     section 521(b) of title 49, United States Code, for 
     intermodal equipment providers that fail to attain 
     satisfactory compliance with applicable Federal Motor Carrier 
     Safety Regulations; and
       (B) prohibits intermodal equipment providers from placing 
     intermodal equipment on the public highways if such providers 
     are found to be unfit under section 31144 of this title;
       (6) a process by which motor carriers and agents of motor 
     carriers may confidentially petition the Federal Motor 
     Carrier Safety Administration to undertake an investigation 
     of noncompliant intermodal equipment provider;
       (7) a process by which an equipment provider or its agent 
     may confidentially petition the Federal Motor Carrier Safety 
     Administration to undertake an investigation of noncompliant 
     motor carriers;
       (8) a process by which drivers or motor carriers would be 
     required to report any damage or defect in intermodal 
     equipment at the time the equipment is returned to the 
     equipment provider; and
       (9) an inspection and audit program of intermodal equipment 
     providers.
       (b) Time for Issuing Regulations.--The regulations required 
     under subsection (a) shall be developed pursuant to a 
     rulemaking proceeding initiated not later than 120 days after 
     the date of enactment of this Act and shall be issued not 
     later than 1 year after such date of enactment.

     SEC. 186. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Federal 
     Motor Carrier Safety Administration $1,500,000 for the 
     establishment and implementation of the inspection program 
     described in section 185(a)(7) of this subtitle.
                                 ______
                                 
  SA 2396. Mr. DeWINE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 792, between lines 15 and 16, insert the following:

                    Part 3--Miscellaneous Provisions

     SEC. 4171. DRIVER LICENSING AND EDUCATION.

       (a) National Office of Driver Licensing and Education.--
     Section 105 of title 49, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f)(1) There is a National Office of Driver Licensing and 
     Education in the National Highway Traffic Safety 
     Administration.
       ``(2) The head of the National Office of Driver Licensing 
     and Education is the Director.
       ``(3) The functions of the National Office of Driver 
     Licensing and Education are as follows:
       ``(A) To provide States with services for coordinating the 
     motor vehicle driver training and licensing programs of the 
     States.
       ``(B) To develop and make available to the States a 
     recommended comprehensive model for motor vehicle driver 
     education and graduated licensing that incorporates the best 
     practices in driver education and graduated licensing, 
     including best practices with respect to--
       ``(i) vehicle handling and crash avoidance;
       ``(ii) driver behavior and risk reduction;
       ``(iii) roadway features and associated safety 
     implications;
       ``(iv) roadway interactions involving all types of vehicles 
     and road users, such as car-truck and pedestrian-car 
     interactions;
       ``(v) parent education; and
       ``(vi) other issues identified by the Director.
       ``(C) To carry out such research (pursuant to cooperative 
     agreements or otherwise) and undertake such other activities 
     as the Director determines appropriate to develop and, on an 
     ongoing basis, improve the recommended comprehensive model.
       ``(D) To provide States with technical assistance for the 
     implementation and deployment of the motor vehicle driver 
     education and licensing comprehensive model recommended under 
     subparagraph (B).

[[Page S1098]]

       ``(E) To develop and recommend to the States methods for 
     harmonizing the presentation of motor vehicle driver 
     education and licensing with the requirements of multistage 
     graduated licensing systems, including systems described in 
     section 410(c)(4) of title 23, and to demonstrate and 
     evaluate the effectiveness of those methods in selected 
     States.
       ``(F) To assist States with the development and 
     implementation of programs to certify driver education 
     instructors, including the development and implementation of 
     proposed uniform certification standards.
       ``(G) To provide States with financial assistance under 
     section 412 of title 23 for--
       ``(i) the implementation of the motor vehicle driver 
     education and licensing comprehensive model recommended under 
     subparagraph (B);
       ``(ii) the establishment or improved administration of 
     multistage graduated licensing systems; and
       ``(iii) the support of other improvements in motor vehicle 
     driver education and licensing programs.
       ``(H) To evaluate the effectiveness of the comprehensive 
     model recommended under subparagraph (B).
       ``(I) To examine different options for delivering driver 
     education in the States.
       ``(J) To perform such other functions relating to motor 
     vehicle driver education or licensing as the Secretary may 
     require.
       ``(4) Not later than 42 months after the date of the 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004, the Director shall submit 
     to Congress a report on the progress made by the National 
     Office of Driver Licensing and Education with respect to the 
     functions under paragraph (3).''.
       (b) Grant Program for Improvement of Driver Education and 
     Licensing.--
       (1) Authority.--
       (A) In general.--Chapter 4 of title 23, United States Code, 
     is amended by adding at the end the following new section:

     ``SEC. 412. DRIVER EDUCATION AND LICENSING.

       ``(a) Authority.--
       ``(1) In general.--The Secretary shall carry out a program 
     to provide States, by grant, with financial assistance to 
     support the improvement of motor vehicle driver education 
     programs and the establishment and improved administration of 
     graduated licensing systems, including systems described in 
     section 410(c)(4) of this title.
       ``(2) Administrative office.--The Secretary shall 
     administer the program under this section through the 
     Director of the National Office of Driver Licensing and 
     Education.
       ``(b) Eligibility Requirements.--
       ``(1) Regulations.--The Secretary shall prescribe in 
     regulations the eligibility requirements, application and 
     approval procedures and standards, and authorized uses of 
     grant proceeds for the grant program under this section. The 
     regulations shall, at a minimum, authorize use of grant 
     proceeds for the following activities:
       ``(A) Quality assurance testing, including follow-up 
     testing to monitor the effectiveness of--
       ``(i) driver licensing and education programs;
       ``(ii) instructor certification testing; and
       ``(iii) other statistical research designed to evaluate the 
     performance of driver education and licensing programs.
       ``(B) Improvement of motor vehicle driver education 
     curricula.
       ``(C) Training of instructors for motor vehicle driver 
     education programs.
       ``(D) Testing and evaluation of motor vehicle driver 
     performance.
       ``(E) Public education and outreach regarding motor vehicle 
     driver education and licensing.
       ``(F) Improvements with respect to State graduated 
     licensing programs, as well as related enforcement 
     activities.
       ``(2) Consultation requirement.--In prescribing the 
     regulations, the Secretary shall consult with the following:
       ``(A) The Administrator of the National Highway Traffic 
     Safety Administration.
       ``(B) The heads of such other departments and agencies of 
     the United States as the Secretary considers appropriate on 
     the basis of relevant interests or expertise.
       ``(C) Appropriate officials of the governments of States 
     and political subdivisions of States.
       ``(D) Other relevant experts.
       ``(c) Maximum Amount of Grant.--The maximum amount of a 
     grant of financial assistance for a program, project, or 
     activity under this section may not exceed 75 percent of the 
     total cost of such program, project, or activity.''.
       (B) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``412. Driver education and licensing.''.

       (2) Time for promulgation of regulations.--The Secretary of 
     Transportation shall promulgate the regulations under section 
     412(b) of title 23, United States Code (as added by paragraph 
     (1)), not later than October 1, 2005.
       (c) Grant Program for Public Awareness of Organ Donation 
     Through Driver Licensing Programs.--
       (1) Authority.--
       (A) In general.--Chapter 4 of title 23, United States Code 
     (as amended by subsection (b)), is further amended by adding 
     at the end the following new section:

     ``SEC. 413. ORGAN DONATION THROUGH DRIVER LICENSING.

       ``(a) Authority.--
       ``(1) In general.--The Secretary shall carry out a program 
     to provide eligible recipients, by grant, with financial 
     assistance to carry out campaigns to increase public 
     awareness of, and training on, authority and procedures under 
     State law to provide for the donation of organs through a 
     declaration recorded on a motor vehicle driver license.
       ``(2) Administrative office.--The Secretary shall 
     administer the program under this section through the 
     Director of the National Office of Driver Licensing and 
     Education.
       ``(b) Eligibility Requirements.--
       ``(1) Regulations.--The Secretary shall prescribe in 
     regulations the eligibility requirements, application and 
     approval procedures and standards, and authorized uses of 
     grant proceeds for the grant program under this section.
       ``(2) Consultation requirement.--In prescribing the 
     regulations, the Secretary shall consult with the following:
       ``(A) The Administrator of the National Highway Traffic 
     Safety Administration.
       ``(B) The heads of such other departments and agencies of 
     the United States as the Secretary considers appropriate on 
     the basis of relevant interests or expertise.
       ``(C) Appropriate officials of the governments of States 
     and political subdivisions of States.
       ``(D) Representatives of private sector organizations 
     recognized for relevant expertise.''.
       (B) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``413. Organ donation through driver licensing.''.

       (2) Time for promulgation of regulations.--The Secretary of 
     Transportation shall promulgate the regulations under section 
     413(b) of title 23, United States Code (as added by paragraph 
     (1)), not later than October 1, 2005.
       (d) Study of National Driver Education Standards.--
       (1) Requirement for study.--The Secretary of Transportation 
     shall carry out a study to determine whether the 
     establishment and imposition of nationwide minimum standards 
     of motor vehicle driver education would improve national 
     highway traffic safety or the performance and legal 
     compliance of novice drivers.
       (2) Time for completion of study.--The Secretary shall 
     complete the study not later than 2 years after the date of 
     the enactment of this Act.
       (3) Report.--The Secretary shall publish a report on the 
     results of the study under this section not later than 2 
     years after the study is completed.
       (e) Authorization of Appropriations.--Of the amounts 
     available to carry out section 403 of title 23, United States 
     Code, for each of the fiscal years 2005 through 2010, 
     $5,000,000 may be made available for each such fiscal year to 
     carry out sections 412 and 413 of title 23, United States 
     Code (as added by subsections (b) and (c), respectively).

     SEC. 4172. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE 
                   ACT.

       (a) Safety Labeling Requirement.--Section 3 of the 
     Automobile Information Disclosure Act (15 U.S.C. 1232) is 
     amended by adding at the end the following:
       ``(g) if one or more safety ratings for such automobile 
     have been assigned and formally published or released by the 
     National Highway Traffic Safety Administration under the New 
     Car Assessment Program, information about safety ratings 
     that--
       ``(1) includes a graphic depiction of the number of stars 
     that corresponds to each such assigned safety rating 
     displayed in a clearly differentiated fashion from stars 
     indicating the unattained safety rating;
       ``(2) refers to frontal impact crash tests, side impact 
     crash tests, and rollover resistance tests (whether or not 
     such automobile has been assigned a safety rating for such 
     tests), including statements that--
       ``(A) frontal impact crash test ratings are based on risk 
     of head and chest injury;
       ``(B) side impact crash test ratings are based on risk of 
     chest injury; and
       ``(C) rollover resistance ratings are based on risk of 
     rollover in the event of a single automobile crash;
       ``(3) is presented in a legible, visible, and prominent 
     fashion and covers at least--
       ``(A) 8 percent of the total area of the label; or
       ``(B) an area with a minimum length of 4 \1/2\ inches and a 
     minimum height of 3 \1/2\ inches; and
       ``(4) contains a heading titled `Government Safety 
     Information' and a disclaimer including the following text: 
     `Star ratings for frontal impact crash tests can only be 
     compared to other vehicles in the same weight class and those 
     plus or minus 250 pounds. Side impact and rollover ratings 
     can be compared across all vehicle weights and classes. For 
     more information on safety and testing, please visit http://
www.nhtsa.dot.gov'; and
       ``(h) if an automobile has not been tested by the National 
     Highway Traffic Safety Administration under the New Car 
     Assessment Program, or safety ratings for such automobile 
     have not been assigned in one or more rating categories, a 
     statement to that effect.''.
       (b) Regulations.--Not later than January 1, 2005, the 
     Secretary of Transportation shall prescribe regulations to 
     implement the labeling requirements under subsections (g)

[[Page S1099]]

     and (h) of section 3 of such Act (as added by subsection 
     (a)).
       (c) Conforming and Technical Amendments.--Section 3 of such 
     Act is further amended--
       (1) in subsection (e), by striking ``and'' after the 
     semicolon; and
       (2) in subsection (f)--
       (A) by adding ``and'' at the end of paragraph (3); and
       (B) by striking the period at the end and inserting a 
     semicolon.
       (d) Applicability.--The labeling requirements under 
     subsections (g) and (h) of section 3 of such Act (as added by 
     subsection (a)), and the regulations prescribed under 
     subsection (b), shall apply to new automobiles delivered on 
     or after--
       (1) September 1, 2005, if the regulations under subsection 
     (b) are prescribed not later than August 31, 2004; or
       (2) September 1, 2006, if the regulations under subsection 
     (b) are prescribed after August 31, 2004.

     SEC. 4173. CHILD SAFETY.

       (a) Incorporation of Child Dummies in Safety Tests.--
       (1) Rulemaking required.--Not later than 2 years after the 
     date of the enactment of this Act, the Administrator of the 
     National Highway Traffic Safety Administration shall conduct 
     a rulemaking to increase utilization of child dummies, 
     including Hybrid-III child dummies, in motor vehicle safety 
     tests, including crash tests, conducted by the 
     Administration.
       (2) Criteria.--In conducting the rulemaking under 
     subsection (a), the Administrator shall select motor vehicle 
     safety tests in which the inclusion of child dummies will 
     lead to--
       (A) increased understanding of crash dynamics with respect 
     to children; and
       (B) measurably improved child safety.
       (3) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Transportation shall 
     publish a report regarding the implementation of this 
     section.
       (b) Child Safety in Rollover Crashes.--
       (1) Consumer information program.--Not later than 2 years 
     after the date of the enactment of this Act, the Secretary of 
     Transportation shall implement a consumer information program 
     relating to child safety in rollover crashes. The Secretary 
     shall make information related to the program available to 
     the public following completion of the program.
       (2) Child dummy development.--
       (A) In general.--The Administrator of the National Highway 
     Traffic Safety Administration shall initiate the development 
     of a biofidelic child crash test dummy capable of measuring 
     injury forces in a simulated rollover crash.
       (B) Reports.--The Secretary shall submit to Congress a 
     report on progress related to such development--
       (i) not later than 1 year after the date of the enactment 
     of this Act; and
       (ii) not later than 3 years after the date of the enactment 
     of this Act.
       (c) Report on Enhanced Vehicle Safety Technologies.--Not 
     later than 2 years after the date of the enactment of this 
     Act, the Secretary of Transportation shall submit to Congress 
     a report that describes, evaluates, and determines the 
     relative effectiveness of--
       (1) currently available and emerging technologies, 
     including auto-reverse functions and child-safe window 
     switches, that are designed to prevent and reduce the number 
     of injuries and deaths to children left unattended inside 
     parked motor vehicles, including injuries and deaths that 
     result from hyperthermia or are related to power windows or 
     power sunroofs; and
       (2) currently available and emerging technologies that are 
     designed to improve the performance of safety belts with 
     respect to the safety of occupants aged between 4 and 8 years 
     old.
       (d) Completion of Rulemaking Regarding Power Windows.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Secretary of Transportation shall--
       (1) complete the rulemaking initiated by the National 
     Highway Traffic Safety Administration that is ongoing on the 
     date of the enactment of this Act and relates to a 
     requirement that window switches be designed to reduce the 
     accidental closing by children of power windows; and
       (2) issue performance-based regulations to take effect not 
     later than September 1, 2006, requiring that window switches 
     or related technologies be designed to prevent the accidental 
     closing by children of power windows.
       (e) Database on Injuries and Deaths in Nontraffic, Noncrash 
     Events.--
       (1) In general.--The Secretary of Transportation shall 
     establish a new database of, and collect data regarding, 
     injuries and deaths in nontraffic, noncrash events involving 
     motor vehicles. The database shall include information 
     regarding--
       (A) the number, types, and proximate causes of injuries and 
     deaths resulting from such events;
       (B) the characteristics of motor vehicles involved in such 
     events;
       (C) the characteristics of the motor vehicle operators and 
     victims involved in such events; and
       (D) the presence or absence in motor vehicles involved in 
     such events of advanced technologies designed to prevent such 
     injuries and deaths.
       (2) Rulemaking.--The Secretary shall conduct a rulemaking 
     regarding how to structure and compile the database.
       (3) Availability.--The Secretary shall make the database 
     available to the public.

     SEC. 4174. SAFE INTERSECTIONS.

       (a) In General.--Chapter 2 of title 18, United States Code, 
     is amended by adding at the end the following:

     ``Sec.  39. Traffic signal preemption transmitters

       ``(a) Offenses.--
       ``(1) Sale.--A person who provides for sale to unauthorized 
     users a traffic signal preemption transmitter in or affecting 
     interstate or foreign commerce shall be fined not more than 
     $10,000, imprisoned not more than 1 year, or both.
       ``(2) Possession.--A person who is an unauthorized user in 
     possession of a traffic signal preemption transmitter in or 
     affecting interstate or foreign commerce shall be fined not 
     more than $10,000, imprisoned not more than 6 months, or 
     both.
       ``(b) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Traffic signal preemption transmitter.--The term 
     `traffic signal preemption transmitter' means any device or 
     mechanism that can change a traffic signal's phase.
       ``(2) Unauthorized user.--The term `unauthorized user' 
     means a user of a traffic signal preemption transmitter who 
     is not a government approved user.''.
       (b) Chapter Analysis.--The chapter analysis for chapter 2 
     of title 18, United States Code, is amended by adding at the 
     end the following:

``39. Traffic signal preemption transmitters.''.

     SEC. 4175. STUDY ON INCREASED SPEED LIMITS.

       (a) Study.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall conduct a study to 
     examine the effects of increased speed limits enacted by 
     States after 1995.
       (2) Requirements.--The study shall collect empirical data 
     regarding--
       (A) increases or decreases in driving speeds on Interstate 
     highways since 1995;
       (B) correlations between changes in driving speeds and 
     accident, injury, and fatality rates;
       (C) correlations between posted speed limits and observed 
     driving speeds;
       (D) the overall impact on motor vehicle safety resulting 
     from the repeal of the national maximum speed limit in 1995; 
     and
       (E) such other matters as the Secretary determines to be 
     appropriate.
       (b) Report.--Not later than 1 year after the date of 
     completion of the study under subsection (a), the Secretary 
     shall submit to Congress a report that describes the results 
     of the study.
                                 ______
                                 
  SA 2397. Mr. CAMPBELL (for himself and Mr. Inouye) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 20, strike line 7 and all that follows 
     through page 31, line 15, and insert the following:
       ``(13) Indian land.--The term `Indian land' means--
       ``(A) any land located within the boundaries of an Indian 
     reservation, pueblo, or rancheria;
       ``(B) any land not located within the boundaries of an 
     Indian reservation, pueblo, or rancheria, the title to which 
     is held--
       ``(i) in trust by the United States for the benefit of an 
     Indian tribe;
       ``(ii) by an Indian tribe, subject to restriction by the 
     United States against alienation; or
       ``(iii) by a dependent Indian community; and
       ``(C) land conveyed as part of an original conveyance to a 
     Native Corporation in accordance with the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601 et seq.).
       ``(14) Indian reservation.--The term `Indian reservation' 
     includes--
       ``(A) an Indian reservation in existence as of the date of 
     enactment of the Indian Tribal Surface Transportation 
     Improvement Act of 2003;
       ``(B) a public domain Indian allotment;
       ``(C) a former reservation in the State of Oklahoma;
       ``(D) a parcel of land conveyed as part of an original 
     conveyance to a Native Corporation in accordance with the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.); 
     and
       ``(E) a dependent Indian community located within the 
     borders of the United States, regardless of whether the 
     community is located--
       ``(i) on original or acquired territory of the community; 
     or
       ``(ii) within or outside the boundaries of any particular 
     State.
       ``(15) Indian reservation road.--
       ``(A) In general.--The term `Indian reservation road' means 
     a public road that is located within or provides access to an 
     area described in subparagraph (B) on which or in which 
     reside Indians or Alaskan Natives that, as determined by the 
     Secretary of the Interior, are eligible for services 
     generally available to Indians under Federal laws 
     specifically applicable to Indians.

[[Page S1100]]

       ``(B) Areas.--The areas referred to in subparagraph (A) 
     are--
       ``(i) an Indian reservation;
       ``(ii) Indian trust land or restricted Indian land that is 
     not subject to fee title alienation without the approval of 
     the Federal Government; and
       ``(16) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(17) Interstate system.--The term `Interstate System' 
     means the Dwight D. Eisenhower National System of Interstate 
     and Defense Highways described in section 103(c).
       ``(18) Maintenance.--
       ``(A) In general.--The term `maintenance' means the 
     preservation of a highway.
       ``(B) Inclusions.--The term `maintenance' includes the 
     preservation of--
       ``(i) the surface, shoulders, roadsides, and structures of 
     a highway; and
       ``(ii) such traffic-control devices as are necessary for 
     safe, secure, and efficient use of a highway.
       ``(19) Maintenance area.--The term `maintenance area' means 
     an area that was designated as a nonattainment area, but was 
     later redesignated by the Administrator of the Environmental 
     Protection Agency as an attainment area, under section 107(d) 
     of the Clean Air Act (42 U.S.C. 7407(d)).
       ``(20) National forest system road or trail.--The term 
     `National Forest System road or trail' means a forest road or 
     trail that is under the jurisdiction of the Forest Service.
       ``(21) National highway system.--The term `National Highway 
     System' means the Federal-aid highway system described in 
     section 103(b).
       ``(22) Operating costs for traffic monitoring, management, 
     and control.--The term `operating costs for traffic 
     monitoring, management, and control' includes--
       ``(A) labor costs;
       ``(B) administrative costs;
       ``(C) costs of utilities and rent;
       ``(D) costs incurred by transportation agencies for 
     technology to monitor critical transportation infrastructure 
     for security purposes; and
       ``(E) other costs associated with transportation systems 
     management and operations and the continuous operation of 
     traffic control, such as--
       ``(i) an integrated traffic control system;
       ``(ii) an incident management program; and
       ``(iii) a traffic control center.
       ``(23) Operational improvement.--
       ``(A) In general.--The term `operational improvement' 
     means--
       ``(i) a capital improvement for installation or 
     implementation of--

       ``(I) a transportation system management and operations 
     program;
       ``(II) traffic and transportation security surveillance and 
     control equipment;
       ``(III) a computerized signal system;
       ``(IV) a motorist information system;
       ``(V) an integrated traffic control system;
       ``(VI) an incident management program;
       ``(VII) equipment and programs for transportation response 
     to manmade and natural disasters; or
       ``(VIII) a transportation demand management facility, 
     strategy, or program; and

       ``(ii) such other capital improvements to a public road as 
     the Secretary may designate by regulation.
       ``(B) Exclusions.--The term `operational improvement' does 
     not include--
       ``(i) a resurfacing, restorative, or rehabilitative 
     improvement;
       ``(ii) construction of an additional lane, interchange, or 
     grade separation; or
       ``(iii) construction of a new facility on a new location.
       ``(24) Park road.--The term `park road' means a public road 
     (including a bridge built primarily for pedestrian use, but 
     with capacity for use by emergency vehicles) that is located 
     within, or provides access to, an area in the National Park 
     System with title and maintenance responsibilities vested in 
     the United States.
       ``(25) Parkway.--The term `parkway' means a parkway 
     authorized by an Act of Congress on land to which title is 
     vested in the United States.
       ``(26) Project.--The term `project' means--
       ``(A)(i) an undertaking to construct a particular portion 
     of a highway; or
       ``(ii) if the context so implies, a particular portion of a 
     highway so constructed; and
       ``(B) any other undertaking eligible for assistance under 
     this title.
       ``(27) Project agreement.--The term `project agreement' 
     means the formal instrument to be executed by the Secretary 
     and recipient of funds under this title.
       ``(28) Public authority.--The term `public authority' means 
     a Federal, State, county, town, or township, Indian tribe, 
     municipal or other local government or instrumentality with 
     authority to finance, build, operate, or maintain toll or 
     toll-free facilities.
       ``(29) Public forest service road.--The term `public Forest 
     Service road' means a classified forest road--
       ``(A) that is open to public travel;
       ``(B) for which title and maintenance responsibility is 
     vested in the Federal Government; and
       ``(C) that has been designated a public road by the Forest 
     Service.
       ``(30) Public lands development roads and trails.--The term 
     `public lands development roads and trails' means roads and 
     trails that the Secretary of the Interior determines are of 
     primary importance for the development, protection, 
     administration, and use of public lands and resources under 
     the control of the Secretary of the Interior.
       ``(31) Public lands highway.--The term `public lands 
     highway' means--
       ``(A) a forest road that is--
       ``(i) under the jurisdiction of, and maintained by, a 
     public authority; and
       ``(ii) open to public travel; and
       ``(B) any highway through unappropriated or unreserved 
     public land, nontaxable Indian land, or any other Federal 
     reservation (including a main highway through such land or 
     reservation that is on the Federal-aid system) that is--
       ``(i) under the jurisdiction of, and maintained by, a 
     public authority; and
       ``(ii) open to public travel.
       ``(32) Public road.--The term `public road' means any road 
     or street that is--
       ``(A) under the jurisdiction of, and maintained by, a 
     public authority; and
       ``(B) open to public travel.
       ``(33) Recreational road.--The term `recreational road' 
     means a public road--
       ``(A) that provides access to a museum, lake, reservoir, 
     visitors center, gateway to a major wilderness area, public 
     use area, or recreational or historic site; and
       ``(B) for which title is vested in the Federal Government.
       ``(34) Refuge road.--The term `refuge road' means a public 
     road--
       ``(A) that provides access to or within a unit of the 
     National Wildlife Refuge System or a national fish hatchery; 
     and
       ``(B) for which title and maintenance responsibility is 
     vested in the United States Government.
       ``(35) Rural area.--The term `rural area' means an area of 
     a State that is not included in an urban area.
       ``(36) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(37) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) the Commonwealth of Puerto Rico.
       ``(38) State funds.--The term `State funds' includes funds 
     that are--
       ``(A) raised under the authority of the State (or any 
     political or other subdivision of a State); and
       ``(B) made available for expenditure under the direct 
     control of the State transportation department.
       ``(39) State transportation department.--The term `State 
     transportation department' means the department, agency, 
     commission, board, or official of any State charged by the 
     laws of the State with the responsibility for highway 
     construction.
       ``(40) Territorial highway system.--The term `territorial 
     highway system' means the system of arterial highways, 
     collector roads, and necessary interisland connectors in 
     American Samoa, the Commonwealth of the Northern Mariana 
     Islands, Guam, and the United States Virgin Islands that have 
     been designated by the appropriate Governor or chief 
     executive officer of a territory, and approved by the 
     Secretary, in accordance with section 215.
       ``(41) Transportation enhancement activity.--The term 
     `transportation enhancement activity' means, with respect to 
     any project or the area to be served by the project, any of 
     the following activities as the activities relate to surface 
     transportation:
       ``(A) Provision of facilities for pedestrians and bicycles.
       ``(B) Provision of safety and educational activities for 
     pedestrians and bicyclists.
       ``(C) Acquisition of scenic easements and scenic or 
     historic sites (including historic battlefields).
       ``(D) Scenic or historic highway programs (including the 
     provision of tourist and welcome center facilities).
       ``(E) Landscaping and other scenic beautification.
       ``(F) Historic preservation.
       ``(G) Rehabilitation and operation of historic 
     transportation buildings, structures, or facilities 
     (including historic railroad facilities and canals).
       ``(H) Preservation of abandoned railway corridors 
     (including the conversion and use of the corridors for 
     pedestrian or bicycle trails).
       ``(I) Control and removal of outdoor advertising.
       ``(J) Archaeological planning and research.
       ``(K) Environmental mitigation--
       ``(i) to address water pollution due to highway runoff; or
       ``(ii) reduce vehicle-caused wildlife mortality while 
     maintaining habitat connectivity.
       ``(L) Establishment of transportation museums.
       ``(42) Transportation systems management and operations.--
       ``(A) In general.--The term `transportation systems 
     management and operations' means an integrated program to 
     optimize the performance of existing infrastructure through 
     the implementation of multimodal and intermodal, cross-
     jurisdictional systems, services, and projects designed to 
     preserve capacity and improve security, safety, and 
     reliability of the transportation system.
       ``(B) Inclusions.--The term `transportation systems 
     management and operations' includes--
       ``(i) regional operations collaboration and coordination 
     activities between transportation and public safety agencies; 
     and

[[Page S1101]]

       ``(ii) improvements to the transportation system such as 
     traffic detection and surveillance, arterial management, 
     freeway management, demand management, work zone management, 
     emergency management, electronic toll collection, automated 
     enforcement, traffic incident management, roadway weather 
     management, traveler information services, commercial vehicle 
     operations, traffic control, freight management, and 
     coordination of highway, rail, transit, bicycle, and 
     pedestrian operations.
       ``(43) Tribal transportation facility.--The term `tribal 
     transportation facility' means any transportation-related 
     project, facility, or physical infrastructure for an Indian 
     tribe that is funded under this title.
                                 ______
                                 
  SA 2398. Mr. CAMPBELL (for himself and Mr. Inouye) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       

       Beginning on page 321, strike line 14 and all that follows 
     through page 334, line 14, and insert the following:
       ``(B) Funding.--
       ``(i) Reservation of funds.--Notwithstanding any other 
     provision of law, there is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $15,000,000 for each of fiscal years 2004 through 2009 to 
     carry out planning, design, engineering, preconstruction, 
     construction, and inspection of projects to replace,''; and
       (B) by adding at the end the following:
       ``(ii) Availability.--Funds made available to carry out 
     this subparagraph--

       ``(I) shall be available for obligation in the same manner 
     as if the funds were apportioned under chapter 1; and
       ``(II) shall not be available to the Bureau of Indian 
     Affairs to pay administrative costs.''; and

       (5) by adding at the end the following:
       ``(f) Administration of Indian Reservation Roads.--
       ``(1) Contract authority.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, for any fiscal year, not more than 6 percent of the 
     contract authority amounts made available from the Highway 
     Trust Fund to the Bureau of Indian Affairs under this title 
     shall be used to pay the administrative expenses of the 
     Bureau for the Indian reservation roads program (including 
     the administrative expenses relating to individual projects 
     that are associated with the program).
       ``(B) Availability.--Amounts made available to pay 
     administrative expenses under subparagraph (A) shall be made 
     available to an Indian tribal government, on the request of 
     the government, to be used for the associated administrative 
     functions assumed by the Indian tribe under contracts and 
     agreements entered into under the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450b et seq.).
       ``(2) Health and safety assurances.--Notwithstanding any 
     other provision of law, an Indian tribe or tribal 
     organization may commence road and bridge construction under 
     the Transportation Equity Act for the 21st Century (Public 
     Law 105-178) or its successor Act of Congress that is funded 
     through a contract or agreement under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b et 
     seq.) if the Indian tribe or tribal organization--
       ``(A) provides assurances in the contract or agreement that 
     the construction will meet or exceed applicable health and 
     safety standards;
       ``(B) obtains the advance review of the plans and 
     specifications from a licensed professional that has 
     certified that the plans and specifications meet or exceed 
     the applicable health and safety standards; and
       ``(C) provides a copy of the certification under 
     subparagraph (B) to the Assistant Secretary for Indian 
     Affairs.''.
       (d) Planning and Agency Coordination.--Section 204 of title 
     23, United States Code, is amended--
       (1) in subsection (a)(1), by inserting ``refuge roads, 
     recreation roads,'' after ``parkways,'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Use of Funds.--
       ``(1) In general.--Funds available for public lands 
     highways, recreation roads, park roads and parkways, forest 
     highways, and Indian reservation roads shall be used by the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency to pay the cost of transportation planning, 
     research, engineering, operation and maintenance of transit 
     facilities, and construction of the highways, roads, 
     parkways, forest highways, and transit facilities located on 
     public land, national parks, and Indian reservations.
       ``(2) Contract.--In connection with an activity described 
     in paragraph (1), the Secretary and the Secretary of the 
     appropriate Federal land management agency may enter into a 
     construction contract or other appropriate agreement with--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) an Indian tribe.
       ``(3) Indian reservation roads.--In the case of an Indian 
     reservation road--
       ``(A) Indian labor may be used, in accordance with such 
     rules and regulations as may be promulgated by the Secretary 
     of the Interior, to carry out any construction or other 
     activity described in paragraph (1); and
       ``(B) funds made available to carry out this section may be 
     used to pay bridge preconstruction costs (including planning, 
     design, and engineering).
       ``(4) Federal employment.--No maximum on Federal employment 
     shall be applicable to construction or improvement of Indian 
     reservation roads.
       ``(5) Availability of funds.--Funds available under this 
     section for each class of Federal lands highway shall be 
     available for any kind of transportation project eligible for 
     assistance under this title that is within or adjacent to, or 
     that provides access to, the areas served by the particular 
     class of Federal lands highway.
       ``(6) Reservation of funds.--The Secretary of the Interior 
     may reserve funds from administrative funds of the Bureau of 
     Indian Affairs that are associated with the Indian 
     reservation road program to finance the Indian technical 
     centers authorized under section 504(b).''; and
       (3) in subsection (k)(1)--
       (A) in subparagraph (B)--
       (i) by striking ``(2), (5),'' and inserting ``(2), (3), 
     (5),''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) maintenance of public roads in national fish 
     hatcheries under the jurisdiction of the United States Fish 
     and Wildlife Service;
       ``(E) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within a wildlife refuge; and
       ``(F) maintenance and improvement of recreational trails 
     (except that expenditures on trails under this subparagraph 
     shall not exceed 5 percent of available funds for each fiscal 
     year).''.
       (e) Safety.--
       (1) Allocations.--Section 202 of title 23, United States 
     Code (as amended by subsection (c)(5)), is amended by adding 
     at the end the following:
       ``(g) Safety.--Subject to paragraph (2), on October 1 of 
     each fiscal year, the Secretary shall allocate the sums 
     authorized to be appropriated for the fiscal year for safety 
     as follows:
       ``(1) 12 percent to the Bureau of Reclamation.
       ``(2) 18 percent to the Bureau of Indian Affairs.
       ``(3) 17 percent to the Bureau of Land Management.
       ``(4) 17 percent to the Forest Service.
       ``(5) 7 percent to the United States Fish and Wildlife 
     Service.
       ``(6) 17 percent to the National Park Service.
       ``(7) 12 percent to the Corps of Engineers.''.
       (2) Availability of funds.--Section 203 of title 23, United 
     States Code, is amended by inserting ``safety projects or 
     activities,'' after ``refuge roads,'' each place it appears.
       (3) Use of funding.--Section 204 of title 23, United States 
     Code, is amended by adding at the end the following:
       ``(l) Safety Activities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, funds made available for safety under this title 
     shall be used by the Secretary and the head of the 
     appropriate Federal land management agency only to pay the 
     costs of carrying out--
       ``(A) transportation safety improvement activities;
       ``(B) activities to eliminate high-accident locations;
       ``(C) projects to implement protective measures at, or 
     eliminate, at-grade railway-highway crossings;
       ``(D) collection of safety information;
       ``(E) transportation planning projects or activities;
       ``(F) bridge inspection;
       ``(G) development and operation of safety management 
     systems;
       ``(H) highway safety education programs; and
       ``(I) other eligible safety projects and activities 
     authorized under chapter 4.
       ``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency may enter into contracts or agreements 
     with--
       ``(A) a State;
       ``(B) a political subdivision of a State; or
       ``(C) an Indian tribe.
       ``(3) Exception.--The cost sharing requirements under the 
     Federal Water Project Recreation Act (16 U.S.C. 460l-12 et 
     seq.) shall not apply to funds made available to the Bureau 
     of Reclamation under this subsection.''.
       (f) Recreation Roads.--
       (1) Authorizations.--Section 201 of title 23, United States 
     Code, is amended in the first sentence by inserting 
     ``recreation roads,'' after ``public lands highways,''.
       (2) Allocations.--Section 202 of title 23, United States 
     Code (as amended by subsection (e)(1)), is amended by adding 
     at the end the following:
       ``(h) Recreation Roads.--
       ``(1) In general.--Subject to paragraphs (2) and (3), on 
     October 1 of each fiscal year, the Secretary, after 
     completing the transfer under subsection 204(i), shall 
     allocate the

[[Page S1102]]

     sums authorized to be appropriated for the fiscal year for 
     recreation roads as follows:
       ``(A) 8 percent to the Bureau of Reclamation.
       ``(B) 9 percent to the Corps of Engineers.
       ``(C) 13 percent to the Bureau of Land Management.
       ``(D) 70 percent to the Forest Service.
       ``(2) Allocation within agencies.--Recreation road funds 
     allocated to a Federal agency under paragraph (1) shall be 
     allocated for projects and activities of the Federal agency 
     according to the relative needs of each area served by 
     recreation roads under the jurisdiction of the Federal 
     agency, as indicated in the approved transportation 
     improvement program for each Federal agency.''.
       (3) Availability of funds.--Section 203 of title 23, United 
     States Code, is amended--
       (A) in the first sentence, by inserting ``recreation 
     roads,'' after ``Indian reservation roads,''; and
       (B) in the fourth sentence, by inserting ``, recreation 
     roads,'' after ``Indian roads''.
       (4) Use of funding.--Section 204 of title 23, United States 
     Code (as amended by subsection (e)(3)), is amended by adding 
     at the end the following:
       ``(m) Recreation Roads.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, funds made available for recreation roads under 
     this title shall be used by the Secretary and the Secretary 
     of the appropriate Federal land management agency only to pay 
     the cost of--
       ``(A) maintenance or improvements of existing recreation 
     roads;
       ``(B) maintenance and improvements of eligible projects 
     described in paragraph (1), (2), (3), (5), or (6) of 
     subsection (h) that are located in or adjacent to Federal 
     land under the jurisdiction of--
       ``(i) the Department of Agriculture; or
       ``(ii) the Department of the Interior;
       ``(C) transportation planning and administrative activities 
     associated with those maintenance and improvements; and
       ``(D) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within Federal land described in 
     subparagraph (B).
       ``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency may enter into contracts or agreements 
     with--
       ``(A) a State;
       ``(B) a political subdivision of a State; or
       ``(C) an Indian tribe.
       ``(3) New roads.--No funds made available under this 
     section shall be used to pay the cost of the design or 
     construction of new recreation roads.
       ``(4) Compliance with other environmental laws.--A 
     maintenance or improvement project that is funded under this 
     subsection, and that is consistent with or has been 
     identified in a land use plan for an area under the 
     jurisdiction of a Federal agency, shall not require any 
     additional environmental reviews or assessments under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) if--
       ``(A) the Federal agency that promulgated the land use plan 
     analyzed the specific proposal for the maintenance or 
     improvement project under that Act; and
       ``(B) as of the date on which the funds are to be expended, 
     there are--
       ``(i) no significant changes to the proposal bearing on 
     environmental concerns; and
       ``(ii) no significant new information.
       ``(5) Exception.--The cost sharing requirements under the 
     Federal Water Project Recreation Act (16 U.S.C. 460l-12 et 
     seq.) shall not apply to funds made available to the Bureau 
     of Reclamation under this subsection.''.
       (g) Conforming Amendments.--
       (1) Sections 120(e) and 125(e) of title 23, United States 
     Code, are amended by striking ``public lands highways,'' each 
     place it appears and inserting ``public lands highways, 
     recreation roads,''.
       (2) Sections 120(e), 125(e), 201, 202(a), and 203 of title 
     23, United States Code, are amended by striking ``forest 
     development roads'' each place it appears and inserting 
     ``National Forest System roads''.
       (3) Section 202(e) of title 23, United States Code, is 
     amended by striking ``Refuge System,'' and inserting ``Refuge 
     System and the various national fish hatcheries,''.
       (4) Section 204 of title 23, United States Code, is 
     amended--
       (A) in subsection (a)(1), by striking ``public lands 
     highways,'' and inserting ``public lands highways, recreation 
     roads, forest highways,''; and
       (B) in subsection (i), by striking ``public lands 
     highways'' each place it appears and inserting ``public lands 
     highways, recreation roads, and forest highways''.
       (5) Section 205 of title 23, United States Code, is 
     amended--
       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 205. National Forest System roads and trails'';

     and
       (B) in subsections (a) and (d), by striking ``forest 
     development roads'' each place it appears and inserting 
     ``National Forest System roads''.
       (6) The analysis for chapter 2 of title 23, United States 
     Code, is amended by striking the item relating to section 205 
     and inserting the following:

``205. National Forest System roads and trails.''.

       (7) Section 217(c) of title 23, United States Code, is 
     amended by inserting ``refuge roads,'' after ``Indian 
     reservation roads,''.

     SEC. 18__. INDIAN TRIBAL SURFACE TRANSPORTATION.

       (a) Funding for Indian Reservation Roads Program.--Section 
     1101(a)(8) of the Transportation Equity Act for the 21st 
     Century (112 Stat. 112) is amended by striking subparagraph 
     (A) and inserting the following:
       ``(A) Indian reservation roads.--
       ``(i) In general.--Subject to clause (ii), for Indian 
     reservation roads under section 204 of that title--

       ``(I) $330,000,000 for each of fiscal years 2004 through 
     2005;
       ``(II) $425,000,000 for each of fiscal years 2006 through 
     2007; and
       ``(III) $550,000,000 for each of fiscal years 2008 through 
     2009.

       ``(ii) Maintenance.--Of the amounts made available for each 
     fiscal year under clause (i), not less than $50,000,000 shall 
     be used--

       ``(I) to maintain roads on Indian land; and
       ``(II) to maintain tribal transportation facilities serving 
     Indian communities.''.

       (b) Obligation Ceiling.--Section 1102(c)(1) of the 
     Transportation Equity Act for the 21st Century (23 U.S.C. 104 
     note; 112 Stat. 116) is amended--
       (1) by striking ``distribute obligation'' and inserting the 
     following: ``distribute--
       ``(A) obligation'';
       (2) by inserting ``and'' after the semicolon at the end; 
     and
       (3) by adding at the end of the following:
       ``(B) for each of fiscal years 2004 through 2009, any 
     amount of obligation authority made available for Indian 
     reservation road bridges under section 202(d)(4), and for 
     Indian reservation roads under section 204, of title 23, 
     United States Code.''.
       (c) Tribal Contracting Demonstration Project.--
       (1) In general.--Section 202(d)(3) of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(C) Federal lands highway program demonstration 
     project.--
       ``(i) In general.--The Secretary shall establish a 
     demonstration project under which all funds made available 
     under this chapter for Indian reservation roads and for 
     highway bridges located on Indian reservation roads as 
     provided for in subparagraph (A) shall be made available, on 
     the request of an affected Indian tribal government, to the 
     Indian tribal government for use in carrying out, in 
     accordance with the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b et seq.), contracts and 
     agreements for the planning, research, engineering, and 
     construction described in that subparagraph.
       ``(ii) Exclusion of agency participation.--In accordance 
     with subparagraph (B), all funds for Indian reservation roads 
     and for highway bridges located on Indian reservation roads 
     to which clause (i) applies shall be paid without regard to 
     the organizational level at which the Federal lands highway 
     program has previously carried out the programs, functions, 
     services, or activities involved.
       ``(iii) Selection of participating tribes.--

       ``(I) Participants.--

       ``(aa) In general.--In addition to those Indian tribes or 
     tribal organizations already contracting or compacting for 
     any Indian reservation road function or program, for each 
     fiscal year, the Secretary may select up to 15 Indian tribes 
     from the applicant pool described in subclause (II) to 
     participate in the demonstration project carried out under 
     clause (i).
       ``(bb) Consortia.--Two or more Indian tribes that are 
     otherwise eligible to participate in a program or activity to 
     which this title applies may form a consortium to be 
     considered as a single Indian tribe for the purpose of 
     becoming part of the applicant pool under subclause (II).
       ``(cc) Funding.--An Indian tribe participating in the pilot 
     program under this subparagraph shall receive funding in an 
     amount equal to the sum of the funding that the Indian tribe 
     would otherwise receive in accordance with the funding 
     formula established under the other provisions of this 
     subsection, and an additional percentage of that amount equal 
     to the percentage of funds withheld during the applicable 
     fiscal year for the road program management costs of the 
     Bureau of Indian Affairs under subsection (f)(1).

       ``(II) Applicant pool.--The applicant pool described in 
     this subclause shall consist of each Indian tribe (or 
     consortium) that--

       ``(aa) has successfully completed the planning phase 
     described in subclause (IV);
       ``(bb) has requested participation in the demonstration 
     project under this subparagraph through the adoption of a 
     resolution or other official action by the tribal governing 
     body; and
       ``(cc) has demonstrated financial stability and financial 
     management capability in accordance with subclause (III) 
     during the 3-fiscal-year period immediately preceding the 
     fiscal year for which participation under this subparagraph 
     is being requested.

       ``(III) Criteria for determining financial stability and 
     financial management capacity.--For the purpose of subclause 
     (II), evidence that, during the 3-year period referred to in 
     subclause (II)(cc), an Indian tribe had no uncorrected 
     significant and material audit exceptions in the required 
     annual audit of the Indian tribe's self-determination 
     contracts or self-governance funding agreements with any 
     Federal agency shall be conclusive

[[Page S1103]]

     evidence of the required stability and capability.
       ``(IV) Planning phase.--

       ``(aa) In general.--An Indian tribe (or consortium) 
     requesting participation in the demonstration project under 
     this subparagraph shall complete a planning phase that shall 
     include legal and budgetary research and internal tribal 
     government and organization preparation.
       ``(bb) Eligibility.--A tribe (or consortium) described in 
     item (aa) shall be eligible to receive a grant under this 
     subclause to plan and negotiate participation in a project 
     described in that item.

       ``(V) Report to congress.--Not later than September 30, 
     2006, the Secretary shall prepare and submit to Congress a 
     report describing the implementation of the demonstration 
     project and any recommendations for improving the project.''.

       (2) Conforming amendments.--
       (A) Section 4 of the Indian Self-Determination andEducation 
     Assistance Act (25 U.S.C. 450b(i)) is amended by striking 
     subsection (i) and inserting the following:
       ``(i) Secretary.--Except as otherwise provided, the term 
     `Secretary' means any 1 or more of the following, as 
     appropriate:
       ``(1) The Secretary of Health and Human Services.
       ``(2) The Secretary of the Interior.
       ``(3) The Secretary of Transportation.''
       (B) Section 401 of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 458aa) is amended--
       (i) by striking ``The Secretary'' and inserting ``(a) In 
     General.--The Secretary''; and
       (ii) by adding at the end the following:
       ``(b) Secretary of Transportation.--Notwithstanding any 
     other provision of law, the Secretary of Transportation may 
     enter into self-governance compacts and annual funding 
     agreements with Indian tribes and tribal organizations to 
     carry out tribal transportation programs (including transit 
     programs) authorized under title 23 or 49, United States 
     Code, in accordance with the terms, conditions, and 
     procedures of this Act (including regulations promulgated 
     under this Act (part 1000 of title 25 Code of Federal 
     Regulations)).''.
       (d) Indian Reservation Road Planning.--Section 204(j) of 
     title 23, United States Code, is amended in the first 
     sentence by striking ``2 percent'' and inserting ``5 
     percent''.
       (e) Alaska Native Village Transportation Program.--Section 
     204 of title 23, United States Code (as amended by section 
     1816), is amended by adding at the end the following:
       ``(p) Alaska Native Village Transportation Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Commission.--The term `Commission' means the Alaska 
     Native Transportation Commission established under paragraph 
     (4)(A).
       ``(B) Native.--The term `Native' has the meaning given the 
     term in section 3 of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1602).
       ``(C) Native authority.--The term `Native authority' means 
     a governing board of a Regional Corporation, a regional 
     Native nonprofit entity, a tribal government, or an 
     alternative regional entity that is designated by the 
     Secretary as a Native regional transportation authority under 
     paragraph (3)(A).
       ``(D) Native village.--The term `Native village' has the 
     meaning given the term in section 3 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1602).
       ``(E) Program.--The term `program' means the Alaska Native 
     village transportation program established under paragraph 
     (2).
       ``(F) Region.--The term `region' means a region in the 
     State specified in section 11(b)(1) of the Alaska Native 
     Claims Settlement Act (43 U.S.C 1610(b)(1)).
       ``(G) Regional corporation.--The term `Regional 
     Corporation' has the meaning given the term in section 2 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1602).
       ``(H) State.--The term `State' means the State of Alaska.
       ``(2) Establishment.--The Secretary shall establish an 
     Alaska Native village transportation program to pay the costs 
     of planning, design, construction, and maintenance of road 
     and other surface transportation facilities identified in 
     accordance with this section.
       ``(3) Alaska native regional transportation authorities.--
       ``(A) Designation.--The Secretary shall designate a Native 
     authority for each region.
       ``(B) Responsibilities.--A Native authority shall, with 
     respect to each Native village or region, as appropriate, 
     covered by the Native authority--
       ``(i) prepare--

       ``(I) a regional transportation plan for the Native 
     village; and
       ``(II) a comprehensive transportation plan for the region;

       ``(ii) prioritize and select projects to be funded with 
     amounts made available under this section for the region;
       ``(iii) coordinate transportation planning with other 
     regions, the State, and other governmental entities; and
       ``(iv) ensure that transportation projects under this 
     section are constructed and implemented.
       ``(4) Alaska native transportation commission.--
       ``(A) Establishment.--As soon as practicable after the date 
     of enactment of this subsection, the Secretary shall 
     establish a commission, to be known as the `Statewide Alaska 
     Native Transportation Commission', consisting of 1 
     representative selected from each Native authority designated 
     by the Secretary under paragraph (3)(A).
       ``(B) Duties.--The Commission shall--
       ``(i) allocate funds made available under this section 
     among regions in accordance with paragraph (5);
       ``(ii) coordinate transportation planning among the 
     regions, the State, and other governmental entities; and
       ``(iii) facilitate transportation projects involving 2 or 
     more regions.
       ``(5) Allocation of funding.--
       ``(A) Fiscal year 2004.--Funds made available for the 
     program for fiscal year 2004 shall be allocated to each 
     region by the Secretary as follows:
       ``(i) 50 percent of the funds shall be allocated based on 
     the proportion that--

       ``(I) the Native population of Native villages in the 
     region; bears to
       ``(II) the Native population of all Native villages in the 
     State.

       ``(ii) 50 percent of the funds shall be allocated as 
     equally as practicable among all Native villages in the 
     region.
       ``(B) Fiscal year 2005 and subsequent fiscal years.--Funds 
     made available for the program for fiscal year 2005 and each 
     fiscal year thereafter shall be allocated among regions by 
     the Commission, in accordance with a formula to be developed 
     by the Commission after taking into consideration--
       ``(i) the health, safety, and economic needs of each region 
     for transportation infrastructure, as identified through the 
     regional planning process;
       ``(ii) the relative costs of construction in each region; 
     and
       ``(iii) the extent to which transportation projects for 
     each region are ready to proceed to design and construction.
       ``(6) Tribal contracting.--Funds allocated among regions 
     under this subsection may be contracted or compacted in 
     accordance with the Indian Self Determination and Education 
     Assistance Act (25 U.S.C. 450b et seq.).
       ``(7) Matching funds.--Notwithstanding any other provision 
     of law, funds made available under this subsection may be 
     used to pay a matching share required for receipt of any 
     other Federal funds that would further a purpose for which 
     allocations under this section are made.
       ``(8) Maintenance.--
       ``(A) In general.--At the request of a Native authority or 
     Native village, the Secretary may increase an amount of funds 
     provided under this subsection for a construction project by 
     an additional amount equal to 100 percent of the total cost 
     of construction of the project, as determined by the 
     Secretary.
       ``(B) Use of retained funds.--An increase in funds provided 
     under subparagraph (A) for a construction project shall be 
     retained, and used only, for future maintenance of the 
     construction project.''.
       (f) Indian Reservation Road Safety Program.--
       (1) In general.--Chapter 4 of title 23, United States Code, 
     is amended by adding at the end the following:

     ``SEC. 412. INDIAN RESERVATION ROAD SAFETY PROGRAM.

       ``(a) Program.--
       ``(1) In general.--The Secretary shall carry out a program 
     to provide to eligible Indian tribes (as determined by the 
     Secretary) competitive grants for use in establishing tribal 
     transportation safety programs on--
       ``(A) Indian reservations; and
       ``(B) other land under the jurisdiction of an Indian tribe.
       ``(2) Use of funds.--Funds from a grant provided under 
     paragraph (1) may be used to carry out a project or 
     activity--
       ``(A) to prevent the operation of motor vehicles by 
     intoxicated individuals;
       ``(B) to promote increased seat belt use rates;
       ``(C) to eliminate hazardous locations and conditions on, 
     or hazardous sections or elements of--
       ``(i) a public road;
       ``(ii) a public surface transportation facility;
       ``(iii) a publicly-owned bicycle or pedestrian pathway or 
     trail; or
       ``(iv) a traffic calming measure;
       ``(D) to eliminate hazards relating to railway-highway 
     crossings; or
       ``(E) to increase transportation safety by any other means, 
     as determined by the Secretary.
       ``(b) Federal Share.--The Federal share of the cost of 
     carrying out the program under this section shall be 100 
     percent.
       ``(c) Funding.--Notwithstanding any other provision of law, 
     there are authorized to be appropriated from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this section--
       ``(1) $6,000,000 for each of fiscal years 2004 and 2005; 
     and
       ``(2) $9,000,000 for each of fiscal years 2006 through 
     2009.''.
       (2) Conforming amendment.--The analysis for chapter 4 of 
     title 23, United States Code, is amended by inserting after 
     the item relating to section 411 the following:

``412. Indian reservation road safety program.''.

       (g) Indian Reservation Rural Transit Program.--Section 5311 
     of title 49, United States Code, is amended by adding at the 
     end the following:
       ``(k) Indian Reservation Rural Transit Program.--
       ``(1) In general.--The Secretary shall establish and carry 
     out a program to provide

[[Page S1104]]

     competitive grants to Indian tribes to establish rural 
     transit programs on reservations or other land under the 
     jurisdiction of the Indian tribes.
       ``(2) Amount of grants.--The amount of a grant provided to 
     an Indian tribe under subparagraph (A) shall be based on the 
     need of the Indian tribe, as determined by the Secretary of 
     Transportation.
       ``(3) Authorization of funding.--For each of fiscal years 
     2004 through 2009, of the amount made available under section 
     5338, $15,000,000 shall be made available to carry out this 
     subsection.''.
       (h) Commercial Vehicle Driving Training Program.--
       (1) Definitions.--In this section:
       (A) Commercial vehicle driving.--The term ``commercial 
     vehicle driving'' means the driving of--
       (i) a vehicle that is a tractor-trailer truck; or
       (ii) any other vehicle (such as a bus or a vehicle used for 
     the purpose of construction) the driving of which requires a 
     commercial license.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
       (2) Grants.--The Secretary shall provide grants, on a 
     competitive basis, to entities described in paragraph (3)(A) 
     to support programs providing training and certificates 
     leading to the licensing of Native Americans with respect to 
     commercial vehicle driving.
       (3) Eligibility.--To be eligible to receive a grant under 
     paragraph (1), an entity shall--
       (A) be a tribal college or university (as defined in 
     section 316(b)(3) of the Higher Education Act (20 U.S.C. 
     1059(b)(3)); and
       (B) prepare and submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       (4) Priority.--In providing grants under paragraph (1), the 
     Secretary shall give priority to grant applications that--
       (A) propose training that exceeds proposed minimum 
     standards for training tractor-trailer drivers of the 
     Department of Transportation;
       (B) propose training that exceeds the entry level truck 
     driver certification standards set by the Professional Truck 
     Driver Institute; and
       (C) propose an education partnership with a private 
     trucking firm, trucking association, or similar entity in 
     order to ensure the effectiveness of the grant program under 
     this section.
       (5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for the period of fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2399. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Section 5212 is amended to read as follows:

     SEC. 5212. TRANSFER OF CERTAIN AMOUNTS FROM THE AIRPORT AND 
                   AIRWAY TRUST FUND TO THE HIGHWAY TRUST FUND TO 
                   REFLECT HIGHWAY USE OF JET FUEL.

       (a) In General.--Section 9502(d) is amended by adding at 
     the end the following new paragraph:
       ``(7) Transfers from the trust fund to the highway trust 
     fund.--
       ``(A) In general.--The Secretary shall pay annually from 
     the Airport and Airway Trust Fund into the Highway Trust Fund 
     an amount (as determined by him) equivalent to amounts 
     received in the Airport and Airway Trust Fund which are 
     attributable to fuel that is used primarily for highway 
     transportation purposes.
       ``(B) Amounts transferred to mass transit account.--The 
     Secretary shall transfer 11 percent of the amounts paid into 
     the Highway Trust Fund under subparagraph (A) to the Mass 
     Transit Account established under section 9503(e).''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 9503 is amended--
       (A) by striking ``appropriated or credited'' and inserting 
     ``paid, appropriated, or credited'', and
       (B) by striking ``or section 9602(b)'' and inserting ``, 
     section 9502(d)(7), or section 9602(b)''.
       (2) Subsection (e)(1) of section 9503 is amended by 
     striking ``or section 9602(b)'' and inserting ``, section 
     9502(d)(7), or section 9602(b)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.
                                 ______
                                 
  SA 2400. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Part IV of subtitle C of title V is amended by inserting at 
     the end the following new section:

     SEC. 5246. ELECTRONIC REPORTING.

       (a) In General.--Section 4101(d), as amended by section 
     5273 of this Act, is amended by adding at the end the 
     following new sentence: ``Any person who is required to 
     report under this subsection and who has 25 or more 
     reportable transactions in a month shall file such report in 
     electronic format.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply on October 1, 2004.
                                 ______
                                 
  SA 2401. Mr. STEVENS (for himself and Mr. Inouye) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 717, line 10, strike ``transportation,'' and insert 
     ``transportation (and, in Alaska and Hawaii, includes 
     regularly scheduled intrastate bus service for the general 
     public),''.
                                 ______
                                 
  SA 2402. Mr. THOMAS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 321, line 7, strike ``and'' and all that follows 
     through line 13, and insert the following:
       (C) in paragraph (3)(A), by striking ``under this title'' 
     and inserting ``under this chapter and section 125(e)''; and
       (D) in paragraph (4)--
       (i) in subparagraph (B)--
       (I) by striking ``(B) Reservation.--Of the amounts'' and 
     all that follows through ``to replace,'' and inserting the 
     following:
                                 ______
                                 
  SA 2403. Mr. HOLLINGS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 539, line 12 strike ``airport operations''.
                                 ______
                                 
  SA 2404. Mr. HOLLINGS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 818, beginning in line 11, strike ``Federal 
     Railroad Administration, Federal Motor Carrier Safety 
     Administration, or the Federal Aviation Administration'' and 
     insert the following, ``Federal Railroad Administration or 
     the Motor Carrier Safety Administration''.
                                 ______
                                 
  SA 2405. Mr. HOLLINGS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 819, beginning in line 1, strike ``Federal Railroad 
     Administration, the Federal Motor Carrier Safety 
     Administration, and the Federal Aviation Administration'' and 
     insert the following: ``Federal Railroad Administration and 
     the Motor Carrier Safety Administration.''.
                                 ______
                                 
  SA 2406. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 321, strike line 7 and all that follows 
     through page 326, line 12 and insert the following:
     Secretary.'';
       (C) in paragraph (3)--
       (i) in subparagraph (A), by striking ``under this title'' 
     and inserting ``under this chapter and section 125(e)''; and
       (ii) by adding at the end the following:
       ``(C) Federal lands highway program demonstration 
     project.--
       ``(i) In general.--The Secretary shall establish a 
     demonstration project under which all funds made available 
     under this chapter for Indian reservation roads and for 
     highway bridges located on Indian reservation roads as 
     provided for in subparagraph (A) shall be made available, on 
     the request of an affected Indian tribal government, to the 
     Indian tribal government for use in carrying out, in 
     accordance with the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b et seq.), contracts and 
     agreements for the planning, research, engineering, and 
     construction described in that subparagraph.
       ``(ii) Exclusion of agency participation.--In accordance 
     with subparagraph (B),

[[Page S1105]]

     all funds for Indian reservation roads and for highway 
     bridges located on Indian reservation roads to which clause 
     (i) applies shall be paid without regard to the 
     organizational level at which the Federal lands highway 
     program has previously carried out the programs, functions, 
     services, or activities involved.
       ``(iii) Selection of participating tribes.--

       ``(I) Participants.--

       ``(aa) In general.--In addition to Indian tribes or tribal 
     organizations that, as of the date of enactment of this 
     subparagraph, are contracting or compacting for any Indian 
     reservation road function or program, for each fiscal year, 
     the Secretary may select up to 15 Indian tribes from the 
     applicant pool described in subclause (II) to participate in 
     the demonstration project carried out under clause (i).
       ``(bb) Consortia.--Two or more Indian tribes that are 
     otherwise eligible to participate in a program or activity to 
     which this title applies may form a consortium to be 
     considered as a single Indian tribe for the purpose of 
     becoming part of the applicant pool under subclause (II).
       ``(cc) Funding.--An Indian tribe participating in the pilot 
     program under this subparagraph shall receive funding in an 
     amount equal to the sum of the funding that the Indian tribe 
     would otherwise receive in accordance with the funding 
     formula established under the other provisions of this 
     subsection, and an additional percentage of that amount equal 
     to the percentage of funds withheld during the applicable 
     fiscal year for the road program management costs of the 
     Bureau of Indian Affairs under subsection (f)(1).

       ``(II) Applicant pool.--The applicant pool described in 
     this subclause shall consist of each Indian tribe (or 
     consortium) that--

       ``(aa) has successfully completed the planning phase 
     described in subclause (IV);
       ``(bb) has requested participation in the demonstration 
     project under this subparagraph through the adoption of a 
     resolution or other official action by the tribal governing 
     body; and
       ``(cc) has demonstrated financial stability and financial 
     management capability in accordance with subclause (III) 
     during the 3-fiscal-year period immediately preceding the 
     fiscal year for which participation under this subparagraph 
     is being requested.

       ``(III) Criteria for determining financial stability and 
     financial management capacity.--For the purpose of subclause 
     (II), evidence that, during the 3-year period referred to in 
     subclause (II)(cc), an Indian tribe had no uncorrected 
     significant and material audit exceptions in the required 
     annual audit of the Indian tribe's self-determination 
     contracts or self-governance funding agreements with any 
     Federal agency shall be conclusive evidence of the required 
     stability and capability.
       ``(IV) Planning phase.--

       ``(aa) In general.--An Indian tribe (or consortium) 
     requesting participation in the demonstration project under 
     this subparagraph shall complete a planning phase that shall 
     include legal and budgetary research and internal tribal 
     government and organization preparation.
       ``(bb) Eligibility.--An Indian tribe (or consortium) 
     described in item (aa) shall be eligible to receive a grant 
     under this subclause to plan and negotiate participation in a 
     project described in that item.

       ``(V) Report to congress.--Not later than September 30, 
     2006, the Secretary shall submit to Congress a report 
     describing the implementation of the demonstration project 
     and any recommendations for improving the project.''; and

       (D) in paragraph (4)--
       (i) in subparagraph (B)--

       (I) by striking ``(B) Reservation.--Of the amounts'' and 
     all that follows through ``to replace,'' and inserting the 
     following:

       ``(B) Funding.--
       ``(i) Reservation of funds.--Of the amounts authorized to 
     be appropriated for Indian reservation roads for each fiscal 
     year, the Secretary, in cooperation with the Secretary of the 
     Interior, shall reserve not less than $15,000,000 for each of 
     fiscal years 2004 through 2009 to carry out planning, design, 
     engineering, preconstruction, construction, and inspection of 
     projects to replace,''; and

       (II) by adding at the end the following:

       ``(ii) Availability.--Funds made available to carry out 
     this subparagraph shall be available for obligation in the 
     same manner as if the funds were apportioned under chapter 
     1.''; and
       (ii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Approval requirement.--
       ``(i) In general.--Subject to clause (ii), on request by an 
     Indian tribe or the Secretary of the Interior, the Secretary 
     may make funds available under this subsection for 
     preliminary engineering for Indian reservation road bridge 
     projects.
       ``(ii) Construction and construction engineering.--The 
     Secretary may make funds available under clause (i) for 
     construction and construction engineering only after approval 
     by the Secretary of applicable plans, specifications, and 
     estimates.''; and
       (5) by adding at the end the following:
       ``(f) Administration of Indian Reservation Roads.--
       ``(1) Contract authority.--Notwithstanding any other 
     provision of law, for any fiscal year, not more than 6 
     percent of the contract authority amounts made available from 
     the Highway Trust Fund to the Bureau of Indian Affairs under 
     this title shall be used to pay the expenses incurred by the 
     Bureau in administering the Indian reservation roads program 
     (including the administrative expenses relating to individual 
     projects associated with the Indian reservation roads 
     program).
       ``(2) Health and safety assurances.--Notwithstanding any 
     other provision of law, an Indian tribe or tribal 
     organization may commence road and bridge construction under 
     the Transportation Equity Act for the 21st Century (Public 
     Law 105-178) or the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2004 that is funded 
     through a contract or agreement under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b et 
     seq.) if the Indian tribe or tribal organization--
       ``(A) provides assurances in the contract or agreement that 
     the construction will meet or exceed applicable health and 
     safety standards;
       ``(B) obtains the advance review of the plans and 
     specifications from a licensed professional that has 
     certified that the plans and specifications meet or exceed 
     the applicable health and safety standards; and
       ``(C) provides a copy of the certification under 
     subparagraph (B) to the Assistant Secretary for Indian 
     Affairs.''.
       (d) Planning and Agency Coordination.--Section 204 of title 
     23, United States Code, is amended--
       (1) in subsection (a)(1), by inserting ``refuge roads, 
     recreation roads,'' after ``parkways,'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Use of Funds.--
       ``(1) In general.--Funds available for public lands 
     highways, recreation roads, park roads and parkways, forest 
     highways, and Indian reservation roads shall be used by the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency to pay the cost of transportation planning, 
     research, engineering, operation and maintenance of transit 
     facilities, and construction of the highways, roads, 
     parkways, forest highways, and transit facilities located on 
     public land, national parks, and Indian reservations.
       ``(2) Contract.--In connection with an activity described 
     in paragraph (1), the Secretary and the Secretary of the 
     appropriate Federal land management agency may enter into a 
     construction contract or other appropriate agreement with--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) an Indian tribe.
       ``(3) Indian reservation roads.--In the case of an Indian 
     reservation road--
       ``(A) Indian labor may be used, in accordance with such 
     rules and regulations as may be promulgated by the Secretary 
     of the Interior, to carry out any construction or other 
     activity described in paragraph (1); and
       ``(B) funds made available to carry out this section may be 
     used to pay bridge preconstruction costs (including planning, 
     design, and engineering).
       ``(4) Federal employment.--No maximum on Federal employment 
     shall be applicable to construction or improvement of Indian 
     reservation roads.
       ``(5) Availability of funds.--Funds available under this 
     section for each class of Federal lands highway shall be 
     available for any kind of transportation project eligible for 
     assistance under this title that is within or adjacent to, or 
     that provides access to, the areas served by the particular 
     class of Federal lands highway.
       ``(6) Reservation of funds.--The Secretary of the Interior 
     may reserve funds from administrative funds of the Bureau of 
     Indian Affairs that are associated with the Indian 
     reservation road program to finance the Indian technical 
     centers authorized under section 504(b).''; and
       (3) in subsection (k)(1)--
       (A) in subparagraph (B)--
       (i) by striking ``(2), (5),'' and inserting ``(2), (3), 
     (5),''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) maintenance of public roads in national fish 
     hatcheries under the jurisdiction of the United States Fish 
     and Wildlife Service;
       ``(E) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within a wildlife refuge; and
       ``(F) maintenance and improvement of recreational trails 
     (except that expenditures on trails under this subparagraph 
     shall not exceed 5 percent of available funds for each fiscal 
     year).''.
       (e) Maintenance of Indian Reservation Roads.--Section 
     204(c) of title 23, United States Code, is amended by 
     striking the second and third sentences and inserting the 
     following: ``Notwithstanding any other provision of this 
     title, of the amount of funds apportioned for Indian 
     reservation roads from the Highway Trust Fund, an Indian 
     tribe may expend for the purpose of maintenance not more than 
     the greater of $250,000 or 25 percent of the apportioned 
     amount. The Bureau of Indian Affairs shall continue to retain 
     primary responsibility, including annual funding request 
     responsibility, for road maintenance programs on Indian 
     reservations. The Secretary shall ensure that funding made 
     available under this subsection for maintenance of Indian 
     reservation roads for each fiscal year is supplementary to 
     and not

[[Page S1106]]

     in lieu of any obligation of funds by the Bureau of Indian 
     Affairs for road maintenance programs on Indian 
     reservations.''.
       (f) Authorization of Contract Authority for States With 
     Indian Reservations.--Section 1214(d)(5)(A) of the 
     Transportation Equity Act for the 21st Century (23 U.S.C. 202 
     note; 112 Stat. 206) is amended by striking ``$1,500,000 for 
     each of fiscal years 1998 through 2003'' and inserting 
     ``$1,800,000 for each of fiscal years 2004 through 2009''.
       (g) Indian Reservation Rural Transit Program.--Section 5311 
     of title 49, United States Code, is amended by adding at the 
     end the following:
       ``(k) Indian Reservation Rural Transit Program.--
       ``(1) In general.--The Secretary shall establish and carry 
     out a program to provide competitive grants to Indian tribes 
     to establish rural transit programs on reservations or other 
     land under the jurisdiction of the Indian tribes.
       ``(2) Amount of grants.--The amount of a grant provided to 
     an Indian tribe under subparagraph (A) shall be based on the 
     need of the Indian tribe, as determined by the Secretary of 
     Transportation.
       ``(3) Authorization of funding.--For each of fiscal years 
     2004 through 2009, of the amount made available under section 
     5338, $15,000,000 shall be made available to carry out this 
     subsection.''.
                                 ______
                                 
  SA 2407. Mr. KYL submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

         TITLE __SURFACE TRANSPORTATION AND TRANSIT EMPOWERMENT

     SEC. __1. SHORT TITLE.

       This title may be cited as the ``Surface Transportation and 
     Transit Empowerment Act''.

     SEC. __2. DEFINITIONS.

       In this title, the following definitions apply:
       (1) Core highway programs.--The term ``core highway 
     programs'' means the following programs:
       (A) The Interstate maintenance program under section 119 of 
     title 23, United States Code.
       (B) Highway bridge replacement and rehabilitation 
     (excluding off-System bridges) under section 144 of that 
     title.
       (C)(i) Indian reservation roads under section 204 of that 
     title.
       (ii) Public lands highways under section 204 of that title.
       (iii) Parkways and park roads under section 204 of that 
     title.
       (D) Highway safety programs under section 402 of that 
     title.
       (E) Highway safety research and development under section 
     403 of that title.
       (F) Motor carrier safety grants under section 31104 of 
     title 49, United States Code.
       (G) Metropolitan planning under section 104(f) of title 23, 
     United States Code.
       (H) National defense highways under section 311 of that 
     title.
       (I) Emergency relief under section 125 of that title.
       (2) Core program state.--The term ``core program State'' 
     means a State which makes an election under section __3.
       (3) Election period.--The term ``election period'' means 
     the period beginning with the fiscal year determined under 
     section __3(b) and ending not later than with fiscal year 
     2009.
       (4) Future investment account.--The term ``Future 
     Investment Account'' means the Future Investment Account 
     established under section 9503(f) of the Internal Revenue 
     Code of 1986.
       (5) Highway account.--The term ``Highway Account'' means 
     the portion of the Highway Trust Fund established under 
     section 9503 of the Internal Revenue Code of 1986 which is 
     not the Mass Transit Account or the Future Investment 
     Account.
       (6) Mass transit account.--The term ``Mass Transit 
     Account'' means the Mass Transit Account established under 
     section 9503(e) of the Internal Revenue Code of 1986.
       (7) Surface transportation.--The term ``surface 
     transportation'' includes mass transit and rail.
       (8) Tier i core program state.--The term ``tier I core 
     program State'' means a core program State that is eligible 
     for a core highway programs payment and a non-core highway 
     programs block grant under section __3.
       (9) Tier ii core program state.--The term ``tier II core 
     program State'' means a core program State that is eligible 
     for a core highway programs payment under section __3 and 
     that elects under section __3(e) to reduce its Federal fuel 
     tax rate with a corresponding reduction in its non-core 
     highway programs block grant.
       (10) Tier i mass transit state.--The term ``tier I mass 
     transit State'' means a State that is eligible for a mass 
     transit block grant under section __4.
       (11) Tier ii mass transit state.--The term ``tier II mass 
     transit State'' means a State that elects under section 
     __4(c) to eliminate its mass transit fuel tax rate with a 
     corresponding elimination of its mass transit block grant.

     SEC. __3. FUNDING OF HIGHWAY PROGRAMS IN CORE PROGRAM STATES.

       (a) Election To Become a Core Program State.--Each State 
     which makes an election described in subsection (b) shall be 
     eligible with respect to each fiscal year during the State's 
     election period for--
       (1) a core highway programs payment; and
       (2) a non-core highway programs block grant,
     in lieu of any other payment from the Highway Account and the 
     Future Highway Investment Sub Account of the Future 
     Investment Account.
       (b) Requirements for Election.--An election is described in 
     this subsection if--
       (1) such election is made by a State at least 180 days 
     before the first fiscal year with respect to which the 
     election applies;
       (2) such election is made by a State that certifies that 
     such State has a metropolitan planning organization 
     established under section 134 of title 23, United States 
     Code, and that such organization will maintain a system for 
     processing funds received by the State under this Act 
     throughout the election period; and
       (3) such election is submitted to the Secretary in such 
     form and manner as the Secretary prescribes.
       (c) Determination and Use of Core Highway Programs 
     Payment.--
       (1) Determination of amount of payment.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     shall determine for each fiscal year the payment necessary to 
     meet the commitments of core highway programs for each core 
     program State.
       (B) Limitations.--
       (i) General rule.--Any payment under subparagraph (A) for 
     any fiscal year for any particular core highway program for a 
     core program State shall be subject to--

       (I) except with respect to core highway programs described 
     in subparagraphs (G), (H), and (I) of section __2(1), the 
     funding level for such program for such year under clause 
     (ii) in lieu of the funding level for such program for such 
     year under any other provision of law, and
       (II) the annual obligation limitation for such program for 
     such year imposed under any provision of law.

       (ii) Special funding levels.--For purposes of clause (i), 
     the funding levels for core highway programs are as follows:

       (I) For the Interstate maintenance program, $5,500,000,000 
     for fiscal year 2004, $6,300,000,000 for fiscal year 2005, 
     $6,550,000,000 for fiscal year 2006, $6,650,000,000 for 
     fiscal year 2007, $7,650,000,000 for fiscal year 2008, and 
     $7,950,000,000 for fiscal year 2009.
       (II) For highway bridge replacement and rehabilitation, 
     $4,650,754,076 for fiscal year 2004, $5,507,287,150 for 
     fiscal year 2005, $5,713,860,644 for fiscal year 2006, 
     $5,730,266,418 for fiscal year 2007, $6,016,042,650 for 
     fiscal year 2008, and $6,103,714,622 for fiscal year 2009.
       (III)(aa) For Indian reservation roads, $300,000,000 for 
     fiscal year 2004, $325,000,000 for fiscal year 2005, 
     $350,000,000 for fiscal year 2006, $375,000,000 for fiscal 
     year 2007, $400,000,000 for fiscal year 2008, and 
     $425,000,000 for fiscal year 2009.
       (bb) For public lands highways, $300,000,000 each of fiscal 
     years 2004 through 2009.
       (cc) For parkways and park roads, $300,000,000 for fiscal 
     year 2004, $310,000,000 for fiscal year 2005, and 
     $320,000,000 for each of fiscal years 2006 through 2009.
       (IV) For highway safety programs, $171,000,000 for each of 
     fiscal years 1998 through 2003.
       (V) For highway safety research and development, 
     $44,000,000 for each of fiscal years 1998 through 2003.
       (VI) For motor carrier safety grants, not more than 
     $90,000,000 for each of fiscal years 1998 through 2003.

       (2) Use of payment.--
       (A) In general.--The core highway programs payment for any 
     core program State shall be available, as provided by 
     appropriation Acts, to the State for any core highway program 
     purpose in such State.
       (B) Transferability of funds.--To the extent that a core 
     program State determines that funds made available under this 
     subsection to the State for a purpose are in excess of the 
     needs of the State for that purpose, the State may transfer 
     the excess funds to, and use the excess funds for, any 
     surface transportation purpose in the State.
       (d) Determination and Use of Non-Core Highway Programs 
     Block Grant.--
       (1) Determination of amount of block grant.--Subject to 
     subsection (e), the amount of the non-core highway programs 
     block grant for any tier I core program State for any fiscal 
     year is equal to the excess of--
       (A) the amount of taxes transferred to the Highway Account 
     and the Future Highway Investment Sub Account of the Future 
     Investment Account for such fiscal year which is attributable 
     to highway users in that State as determined by the Secretary 
     of the Treasury (taking into account proper reductions for 
     uses of such taxes for purposes other than the Federal-aid 
     highway program); over
       (B) the core highway programs payment to such State for 
     such fiscal year, as determined under subsection (c).
       (2) Use of block grant.--The non-core highway programs 
     block grant for any tier I core program State shall be 
     available, as provided by appropriation Acts, to the State 
     for any surface transportation purpose in such State. Any 
     project carrying out such a purpose shall be exempt from any 
     Federal

[[Page S1107]]

     regulation other than with respect to health and safety 
     standards and practices.
       (e) Election To Reduce Federal Fuel Tax Rate With 
     Corresponding Reduction in Block Grant.--
       (1) In general.--With respect to fiscal years beginning 
     after the satisfaction year and ending with the termination 
     of the election period, a core program State may notify the 
     Secretary (in the same manner as the election described in 
     subsection (b)) of an election to become a tier II core 
     program State and to have imposed on highway users in the 
     State the State's core highway programs financing rate with 
     respect to the taxes transferred to the Highway Account and 
     the Future Highway Investment Sub Account of the Future 
     Investment Account which are attributable to such highway 
     users in lieu of the tax rates otherwise established in the 
     Internal Revenue Code of 1986 for such fiscal years.
       (2) Determination of core highway programs financing 
     rate.--
       (A) In general.--Upon notification by the Secretary of an 
     election by a State under paragraph (1), the Secretary of the 
     Treasury shall determine for each subsequent fiscal year such 
     State's core highway programs financing rate, taking into 
     account--
       (i) the amount of taxes necessary to fund that State's core 
     highway programs payment for such fiscal year;
       (ii) the uses of the taxes described in paragraph (1) for 
     purposes other than the Federal-aid highway program for such 
     fiscal year;
       (iii) any adjustments necessary as a result of a 
     determination under this paragraph for a preceding fiscal 
     year; and
       (iv) the rates with respect to such taxes otherwise imposed 
     under the Internal Revenue Code of 1986 for such fiscal year.
       (B) Report.--Not later than August 1, the Secretary of the 
     Treasury shall submit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate, a report that describes the determination 
     required under subparagraph (A).
       (C) Congressional approval required.--The Secretary of the 
     Treasury shall not implement the determination required to be 
     included in the report submitted under subparagraph (B) 
     unless a joint resolution is enacted, in accordance with 
     subparagraph (D), approving such determination before the 
     following October 1.
       (D) Congressional consideration.--
       (i) Terms of the resolution.--For purposes of subparagraph 
     (C), the term ``joint resolution'' means only a joint 
     resolution that is introduced before October 1 and--

       (I) that does not have a preamble;
       (II) the matter after the resolving clause of which is as 
     follows: ``That Congress approves the determination of the 
     Secretary of the Treasury regarding the imposition of the 
     core highway programs rate for the State of __ submitted on 
     __'', the blank spaces being filled in with the appropriate 
     State and date, respectively; and
       (III) the title of which is as follows: ``Joint resolution 
     approving the determination of the Secretary of the Treasury 
     regarding the imposition of a core highway programs rate.''.

       (ii) Referral.--A resolution described in clause (i) that 
     is introduced--

       (I) in the House of Representatives, shall be referred to 
     the Committee on Ways and Means; and
       (II) in the Senate, shall be referred to the Committee on 
     Finance.

       (iii) Discharge.--If a committee to which a resolution 
     described in clause (i) is referred has not reported such 
     resolution by the end of the 30-day period beginning on the 
     date on which the Secretary of the Treasury submits the 
     report required under subparagraph (B), such committee shall 
     be, at the end of such period, discharged from further 
     consideration of such resolution, and such resolution shall 
     be placed on the appropriate calendar of the House involved.
       (iv) Consideration.--Within 30 days after the date on which 
     the committee to which a resolution described in clause (i) 
     has reported, or has been discharged from further 
     consideration of such resolution, such resolution shall be 
     considered in the same manner as a resolution is considered 
     under subsections (d), (e), and (f) of section 2908 of the 
     Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 
     2687 note).
       (3) Satisfaction year.--For purposes of paragraph (1), the 
     term ``satisfaction year'' means the fiscal year during which 
     all Federal non-core highway program obligations of a core 
     program State payable from the Highway Account and the Future 
     Highway Investment Sub Account of the Future Investment 
     Account existing on the date of the election by such State 
     described in subsection (a) are paid.

     SEC. __4. FUNDING OF TRANSIT PROGRAMS IN MASS TRANSIT BLOCK 
                   GRANT STATES.

       (a) Election To Become a Mass Transit Block Grant State.--A 
     core program State or any other State may notify the 
     Secretary (in the same manner as the election described in 
     section __3(b)) of an election to receive with respect to 
     each fiscal year during the State's election period a mass 
     transit block grant, in lieu of any other payment from the 
     Mass Transit Account and the Future Transit Investment Sub 
     Account of the Future Investment Account. An election under 
     this subsection shall not affect a State's continued 
     eligibility for revenues provided through the general fund of 
     the Treasury for transit programs.
       (b) Determination and Use of Mass Transit Block Grant.--
       (1) Determination of amount of block grant.--Subject to 
     subsection (c), the amount of the mass transit block grant 
     for any tier I mass transit State for any fiscal year is 
     equal to the amount of taxes transferred to the Mass Transit 
     Account and the Future Transit Investment Sub Account of the 
     Future Investment Account for such fiscal year which is 
     attributable to highway users in that State as determined by 
     the Secretary of the Treasury.
       (2) Use of block grant.--The mass transit block grant for 
     any tier I mass transit State shall be available, as provided 
     by appropriation Acts, to the State for any surface 
     transportation purpose in such State. Any project carrying 
     out such a purpose shall be exempt from any Federal 
     regulation other than with respect to health and safety 
     standards and practices.
       (c) Election To Eliminate Mass Transit Fuel Tax Rate With 
     Corresponding Elimination of Block Grant.--
       (1) In general.--With respect to fiscal years beginning 
     after the satisfaction year and ending with the termination 
     of the election period, a State which has made an election 
     under subsection (a) may notify the Secretary (in the same 
     manner as such an election) of an election to become a tier 
     II mass transit State and to eliminate the financing rate 
     with respect to the taxes transferred to the Mass Transit 
     Account and the Future Transit Investment Sub Account of the 
     Future Investment Account which are attributable to the 
     highway users of the State in lieu of the mass transit block 
     grant for such fiscal years.
       (2) Elimination of mass transit fuel tax rate.--
       (A) In general.--Upon notification by the Secretary of an 
     election by a State under paragraph (1), the Secretary of the 
     Treasury shall, not later than August 1, submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate, a report that 
     notifies the committees of such an election.
       (B) Congressional approval required.--The Secretary of the 
     Treasury shall not implement the election included in the 
     report submitted under paragraph (1) unless a joint 
     resolution is enacted, in accordance with paragraph (3), 
     approving such election before the following October 1.
       (3) Congressional consideration.--
       (A) Terms of the resolution.--For purposes of paragraph 
     (2), the term ``joint resolution'' means only a joint 
     resolution that is introduced before October 1 and--
       (i) that does not have a preamble;
       (ii) the matter after the resolving clause of which is as 
     follows: ``That Congress approves the elimination of the mass 
     transit fuel tax rate for the State of __ submitted on __'', 
     the blank spaces being filled in with the appropriate State 
     and date, respectively; and
       (iii) the title of which is as follows: ``Joint resolution 
     approving the elimination of the mass transit fuel tax 
     rate.''.
       (B) Consideration.--A resolution described in subparagraph 
     (A) shall be considered in the same manner as a resolution is 
     considered under clauses (ii), (iii), and (iv) of section 
     __3(e)(2)(D).
       (4) Satisfaction year.--For purposes of this section, the 
     term ``satisfaction year'' means the fiscal year during which 
     all Federal transit program obligations of a State payable 
     from the Mass Transit Account and the Future Transit 
     Investment Sub Account of the Future Investment Account 
     existing on the date of the election by such State described 
     in subsection (a) are paid.

     SEC. __5. ENFORCEMENT.

       If the Secretary determines that a core program State (or 
     any other State under section __4(b)(2)) has used funds under 
     this Act for a purpose that is not a surface transportation 
     purpose, the amount of the improperly used funds shall be 
     deducted from any amount the State would otherwise receive 
     from the Highway Account for the fiscal year that begins 
     after the date of the determination.

     SEC. __6. REPORTS.

       (a) Annual State Assessment.--A core program State shall--
       (1) assess the operation of the State surface 
     transportation program funded under this Act in each fiscal 
     year, including the status of the core highway programs in 
     the State; and
       (2) report to the Secretary, by January 1 following the end 
     of the fiscal year, on the result of the assessment.
       (b) Report of the Secretary.--The Secretary shall submit to 
     the appropriate committees of Congress an annual report and 
     evaluation of the State surface transportation programs 
     funded under this Act based on the State assessments and 
     reports submitted under subsection (a). Such report shall 
     include any conclusions and recommendations that the 
     Secretary considers appropriate.

     SEC. __7. INTERSTATE SURFACE TRANSPORTATION COMPACTS.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Infrastructure bank.--The term ``infrastructure bank'' 
     means a surface transportation infrastructure bank 
     established under an interstate compact under subsection 
     (b)(5) and described in subsection (d).
       (2) Participating states.--The term ``participating 
     States'' means the States that are

[[Page S1108]]

     parties to an interstate compact entered into under 
     subsection (b).
       (3) Surface transportation project.--The term ``surface 
     transportation project'' means a surface transportation 
     project, program, or activity described in subsection (b).
       (b) Consent of Congress.--In order to increase public 
     investment, attract needed private investment, and promote an 
     intermodal transportation network, Congress grants consent to 
     States to enter into interstate compacts to--
       (1) promote the continuity, quality, and safety of the 
     Interstate System (as defined in section 101 of title 23, 
     United States Code);
       (2) develop programs to promote and fund surface 
     transportation safety initiatives and establish surface 
     transportation safety standards for the participating States;
       (3) conduct long-term planning for surface transportation 
     infrastructure in the participating States;
       (4) develop design and construction standards for 
     infrastructure described in paragraph (3) to be used by the 
     participating States; and
       (5) establish surface transportation infrastructure banks 
     to promote regional or other multistate investment in 
     infrastructure described in paragraph (3).
       (c) Financing.--An interstate compact established by 
     participating States under subsection (b) to carry out a 
     surface transportation project may provide that, in order to 
     carry out the compact, the participating States may--
       (1) accept contributions from a unit of State or local 
     government or a person;
       (2) use any Federal or State funds made available for that 
     type of surface transportation project;
       (3) on such terms and conditions as the participating 
     States consider advisable--
       (A) borrow money on a short-term basis and issue notes for 
     the borrowing; and
       (B) issue bonds; and
       (4) obtain financing by other means permitted under Federal 
     or State law, including surface transportation infrastructure 
     banks under subsection (d).
       (d) Infrastructure Banks.--
       (1) In general.--An infrastructure bank may--
       (A) make loans;
       (B) under the joint or separate authority of the 
     participating States with respect to the infrastructure bank, 
     issue such debt as the infrastructure bank and the 
     participating States determine appropriate; and
       (C) provide other assistance to public or private entities 
     constructing, or proposing to construct or initiate, surface 
     transportation projects.
       (2) Forms of assistance.--
       (A) In general.--An infrastructure bank may make a loan or 
     provide other assistance described in subparagraph (C) to a 
     public or private entity in an amount equal to all or part of 
     the construction cost, capital cost, or initiation cost of a 
     surface transportation project.
       (B) Subordination of assistance.--The amount of any loan or 
     other assistance described in subparagraph (C) that is 
     received for a surface transportation project under this 
     section may be subordinated to any other debt financing for 
     the surface transportation project.
       (C) Other assistance.--Other assistance referred to in 
     subparagraphs (A) and (B) includes any use of funds for the 
     purpose of--
       (i) credit enhancement;
       (ii) a capital reserve for bond or debt instrument 
     financing;
       (iii) bond or debt instrument financing issuance costs;
       (iv) bond or debt issuance financing insurance;
       (v) subsidization of interest rates;
       (vi) letters of credit;
       (vii) any credit instrument;
       (viii) bond or debt financing instrument security; and
       (ix) any other form of debt financing that relates to the 
     qualifying surface transportation project.
       (3) No obligation of united states.--
       (A) In general.--The establishment under this section of an 
     infrastructure bank does not constitute a commitment, 
     guarantee, or obligation on the part of the United States to 
     any third party with respect to any security or debt 
     financing instrument issued by the bank. No third party shall 
     have any right against the United States for payment solely 
     by reason of the establishment.
       (B) Statement on instrument.--Any security or debt 
     financing instrument issued by an infrastructure bank shall 
     expressly state that the security or instrument does not 
     constitute a commitment, guarantee, or obligation of the 
     United States.

     SEC. __8. FEDERAL-AID FACILITY PRIVATIZATION.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Executive agency.--The term ``Executive agency'' has 
     the meaning provided in section 105 of title 5, United States 
     Code.
       (2) Privatization.--The term ``privatization'' means the 
     disposition or transfer of a transportation infrastructure 
     asset, whether by sale, lease, or similar arrangement, from a 
     State or local government to a private party.
       (3) State or local government.--The term ``State or local 
     government'' means the government of--
       (A) any State;
       (B) the District of Columbia;
       (C) any commonwealth, territory, or possession of the 
     United States;
       (D) any county, municipality, city, town, township, local 
     public authority, school district, special district, 
     intrastate district, regional or interstate government 
     entity, council of governments, or agency or instrumentality 
     of a local government; or
       (E) any federally recognized Indian tribe.
       (4) Transportation infrastructure asset.--
       (A) In general.--The term ``transportation infrastructure 
     asset'' means any surface-transportation-related asset 
     financed in whole or in part by the Federal Government, 
     including a road, tunnel, bridge, or mass-transit-related or 
     rail-related asset.
       (B) Exclusion.--The term does not include any 
     transportation-related asset on the Interstate System (as 
     defined in section 101 of title 23, United States Code).
       (b) Privatization initiatives by state and local 
     governments.--The head of each Executive agency shall--
       (1) assist State and local governments in efforts to 
     privatize the transportation infrastructure assets of the 
     State and local governments; and
       (2) subject to subsection (c), approve requests from State 
     and local governments to privatize transportation 
     infrastructure assets and waive or modify any condition 
     relating to the original Federal program that funded the 
     asset.
       (c) Criteria.--The head of an Executive agency shall 
     approve a request described in subsection (b)(2) if--
       (1) the State or local government demonstrates that a 
     market mechanism, legally enforceable agreement, or 
     regulatory mechanism will ensure that the transportation 
     infrastructure asset will continue to be used for the general 
     objectives of the original Federal program that funded the 
     asset (which shall not be considered to include every 
     condition required for the recipient of Federal funds to have 
     obtained the original Federal funds), so long as needed for 
     those objectives; and
       (2) the private party purchasing or leasing the 
     transportation infrastructure asset agrees to comply with all 
     applicable conditions of the original Federal program.
       (d) Lack of Obligation To Repay Federal Funds.--A State or 
     local government shall have no obligation to repay to any 
     agency of the Federal Government any Federal funds received 
     by the State or local government in connection with a 
     transportation infrastructure asset that is privatized under 
     this section.
       (e) Use of proceeds.--
       (1) In general.--Subject to paragraph (2), a State or local 
     government may use proceeds from the privatization of a 
     transportation infrastructure asset to the extent permitted 
     under applicable conditions of the original Federal program.
       (2) Recovery of certain costs.--Notwithstanding any other 
     provision of law, the State or local government shall be 
     permitted to recover from the privatization of a 
     transportation infrastructure asset--
       (A) the capital investment in the transportation 
     infrastructure asset made by the State or local government;
       (B) an amount equal to the unreimbursed operating expenses 
     in the transportation infrastructure asset paid by the State 
     or local government; and
       (C) a reasonable rate of return on the investment made 
     under subparagraph (A) and expenses paid under subparagraph 
     (B).

     SEC. __9. ESTABLISHMENT OF FUTURE INVESTMENT ACCOUNT.

       Section 9503 of the Internal Revenue Code of 1986 (relating 
     to Highway Trust Fund), as amended by this Act, is amended by 
     adding at the end the following:
       ``(f) Establishment of Future Investment Account.--
       ``(1) Creation of account.--There is established in the 
     Highway Trust Fund a separate account to be known as the 
     `Future Investment Account', consisting of such amounts as 
     may be transferred or credited to the Future Highway 
     Investment Sub Account and the Future Transit Investment Sub 
     Account of the Future Investment Account as provided in this 
     subsection or section 9602(b).
       ``(2) Transfers to future investment account.--
       ``(A) In general.--The Secretary of the Treasury shall 
     transfer to the Future Highway Investment Sub Account the 
     future highway investment portion and to the Future Transit 
     Investment Sub Account the future transit investment portion 
     of the amounts appropriated to the Highway Trust Fund under 
     subsection (b) which are attributable to taxes under sections 
     4041 and 4081 imposed after September 30, [1997].
       ``(B) Future investment portions.--For purposes of 
     subparagraph (A)--
       ``(i) the term `future highway investment portion' means an 
     amount determined at the rate of 3.44 cents for each gallon 
     with respect to which tax was imposed under section 4041 or 
     4081, and
       ``(ii) the term `future transit investment portion' means 
     an amount determined at the rate of .86 cent for each gallon 
     with respect to which tax was so imposed.
       ``(3) Expenditures from account.--Amounts in the Future 
     Investment Account shall be available, as provided by 
     appropriation Acts, in a Federal budget neutral manner, for 
     making expenditures after October 1, 2003--
       ``(A) in the case of the Future Highway Investment Sub 
     Account, in accordance with elections made under section 
     __3(a) of the Surface Transportation and Transit Empowerment 
     Act, and

[[Page S1109]]

       ``(B) in the case of the Future Transit Investment Sub 
     Account, in accordance with elections made under section 
     __4(a) of the Surface Transportation and Transit Empowerment 
     Act.''.

     SEC. __10. EFFECTIVE DATE CONTINGENT UPON CERTIFICATION OF 
                   DEFICIT NEUTRALITY.

       (a) Purpose.--The purpose of this section is to ensure 
     that--
       (1) this Act will become effective only if the Director of 
     the Office of Management and Budget (referred to in this 
     section as the ``Director'') certifies that this Act is 
     deficit neutral;
       (2) discretionary spending limits are reduced to capture 
     the savings realized in devolving transportation functions to 
     the State level pursuant to this Act; and
       (3) the tax reduction made by this Act is not scored under 
     pay-as-you-go and does not inadvertently trigger a 
     sequestration.
       (b) Effective date contingency.--Notwithstanding any other 
     provision of this Act, this Act shall take effect only if--
       (1) the Director submits the report as required in 
     subsection (c); and
       (2) the report contains a certification by the Director 
     that, based on the required estimates, the reduction in 
     discretionary outlays resulting from the reduction in 
     contract authority is at least as great as the reduction in 
     revenues for each fiscal year through fiscal year 2009.
       (c) OMB estimates and report.--
       (1) Requirements.--Not later than 5 calendar days after the 
     date of notification by the Secretary of any election 
     described in section __3(b), the Director shall--
       (A) estimate the net change in revenues resulting from this 
     Act for each fiscal year through fiscal year 2009;
       (B) estimate the net change in discretionary outlays 
     resulting from the reduction in contract authority under this 
     Act for each fiscal year through fiscal year 2009;
       (C) determine, based on those estimates, whether the 
     reduction in discretionary outlays is at least as great as 
     the reduction in revenues for each fiscal year through fiscal 
     year 2009; and
       (D) submit to the Congress a report setting forth the 
     estimates and determination.
       (2) Applicable assumptions and guidelines.--
       (A) Revenue estimates.--The revenue estimates required 
     under paragraph (1)(B) shall be predicated on the same 
     economic and technical assumptions and scorekeeping 
     guidelines that would be used for estimates made pursuant to 
     section 252(d) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 902(d)).
       (B) Outlay estimates.--The outlay estimates required under 
     paragraph (1)(B) shall be determined by comparing the level 
     of discretionary outlays resulting from this Act with the 
     corresponding level of discretionary outlays projected in the 
     baseline under section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
       (d) Conforming Adjustment to Discretionary Spending 
     Limits.--Upon compliance with the requirements specified in 
     subsection (b), the Director shall adjust the adjusted 
     discretionary spending limits for each fiscal year through 
     fiscal year 2009 under section 601(a)(2) of the Congressional 
     Budget Act of 1974 (2 U.S.C. 665(a)(2)) by the estimated 
     reductions in discretionary outlays under subsection (a)(2).
       (e) Paygo interaction.--Upon compliance with the 
     requirements specified in subsection (b), no changes in 
     revenues estimated to result from the enactment of this Act 
     shall be counted for the purposes of section 252(d) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 902(d)).
                                 ______
                                 
  SA 2408. Mr. FITZGERALD (for himself and Mr. Durbin) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 738, strike lines 5 through 12 and insert the 
     following:

     motor vehicles that became effective by December 31, 2002.
       ``(ii) For each of fiscal years 2004 through 2009, the 
     Secretary shall, after making grants under clause (i) of this 
     subparagraph, make a one-time grant to each State that either 
     enacts for the first time after December 31, 2002, and has in 
     effect
                                 ______
                                 
  SA 2409. Mrs. BOXER (for herself, Mr. Dodd, and Mrs. Feinstein) 
submitted an amendment intended to be proposed to amendment SA 2285 
proposed by Mr. Inhofe to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Beginning on page 267, line 2, strike all through page 268, 
     line 6.
                                 ______
                                 
  SA 2410. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1109, after line 22, add the following:

     SEC. __. MODIFICATIONS TO GAS GUZZLERS TAX TO ENCOURAGE 
                   GREATER AUTO FUEL EFFICIENCY.

       (a) Increase in Tax Rate.--Subsection (a) of section 4064 
     (relating to gas guzzlers tax) is amended to read as follows:
       ``(a) Imposition of Tax.--
       ``(1) In general.--There is hereby imposed on the sale by 
     the manufacturer of each automobile a tax determined in 
     accordance with the following table:

If the fuel economy for the model year of the model type in which the 
  automobile falls is:                                      The tax is:
  Less than 5 mpg below the applicable fuel economy standard........$0 
  At least 5 but less than 6 mpg below such standard.............1,000 
  At least 6 but less than 7 mpg below such standard.............1,500 
  At least 7 but less than 8 mpg below such standard.............2,000 
  At least 8 but less than 9 mpg below such standard.............2,500 
  At least 9 but less than 10 mpg below such standard............3,100 
  At least 10 but less than 11 mpg below such standard...........3,800 
  At least 11 but less than 12 mpg below such standard...........4,600 
  At least 12 but less than 13 mpg below such standard...........5,500 
  At least 13 but less than 14 mpg below such standard...........6,500 
  At least 14 mpg below such standard............................7,700.
       ``(2) Inflation Adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2005, each dollar amount referred to in 
     paragraph (1) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section (1)(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `2004' for `1992'.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $100, such amount shall 
     be rounded to the next lowest multiple of $50.''.
       (b) Expansion of Definition of Automobile.--
       (1) Increase in weight.--Section 4064(b)(1)(A)(ii) 
     (defining automobile) is amended by striking ``6,000 pounds'' 
     and inserting ``12,000 pounds''.
       (2) Inclusion of certain vehicles.--Subparagraph (B) of 
     section 4064(b)(1) is amended to read as follows:
       ``(B) Inclusion of certain vehicles.--The term `automobile' 
     includes any sport utility vehicle. For purposes of the 
     preceding sentence, the term `sport utility vehicle' does not 
     include--
       ``(i) a vehicle which does not have a primary load carrying 
     device or container attached or which is an incomplete truck 
     (as defined in 40 C.F.R. 86.1803-01),
       ``(ii) a vehicle which has a seating capacity of more than 
     12 persons,
       ``(iii) a vehicle which has a seating capacity of more than 
     9 persons behind the driver's seat, or
       ``(iv) a vehicle which is equipped with a cargo area of at 
     least 6 feet in interior length which is an open area or is 
     designed for use as an open area but is enclosed by a cap and 
     is not readily accessible directly from the passenger 
     compartment.''.
       (c) Additional Definitions.--Section 4064(b) (relating to 
     definitions) is amended by adding at the end the following 
     new paragraphs:
       ``(8) Applicable fuel economy standard.--The term 
     `applicable fuel economy standard' means, with respect to any 
     model year--
       ``(A) in the case of automobiles not exceeding 6,000 pounds 
     in unloaded gross vehicle weight, the average fuel economy 
     standard as defined in section 32902 of title 49, United 
     States Code, for passenger automobiles for such model year, 
     and
       ``(B) in the case of automobiles exceeding 6,000 pounds in 
     unloaded gross vehicle weight, such automobiles shall be 
     considered to be 8,400 pounds in unloaded gross vehicle 
     weight for the purposes of determining the average fuel 
     economy standard as defined in such section 32902, for such 
     model year.
       ``(9) Mpg.--The term `mpg' means miles per gallon.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to sales after October 31, 2005.

     SEC. __. HIGHLY FUEL-EFFICIENT AUTOMOBILE CREDIT.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 36 as 
     section 37 and by inserting after section 35 the following 
     new section:

     ``SEC. 36. HIGHLY FUEL-EFFICIENT AUTOMOBILE CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this subtitle for the 
     taxable year an amount equal to the new highly fuel-efficient 
     automobile credit determined under subsection (b).
       ``(b) New Highly Fuel-Efficient Automobile Credit.--For 
     purposes of subsection

[[Page S1110]]

     (a), the new highly fuel-efficient automobile credit with 
     respect to any new automobile placed in service by the 
     taxpayer during the taxable year is determined in accordance 
     with the following tables:

If the fuel economy for the model year of the model type in which the 
  passenger automobile falls is:                         The credit is:
  Less than 5 mpg above the applicable fuel economy standard........$0 
  At least 5 but less than 6 mpg above such standard...............200 
  At least 6 but less than 7 mpg above such standard...............250 
  At least 7 but less than 8 mpg above such standard...............300 
  At least 8 but less than 9 mpg above such standard...............350 
  At least 9 but less than 10 mpg above such standard..............500 
  At least 10 but less than 11 mpg above such standard...........1,000 
  At least 11 but less than 12 mpg above such standard...........1,500 
  At least 12 but less than 13 mpg above such standard...........2,000 
  At least 13 but less than 14 mpg above such standard...........2,500 
  At least 14 mpg above such standard............................3,000.

If the fuel economy for the model year of the model type in which the 
  non-passenger automobile falls is:                     The credit is:
  Less than 5 mpg above the applicable fuel economy standard........$0 
  At least 5 but less than 6 mpg above such standard...............200 
  At least 6 but less than 7 mpg above such standard...............250 
  At least 7 but less than 8 mpg above such standard...............300 
  At least 8 but less than 9 mpg above such standard...............350 
  At least 9 but less than 10 mpg above such standard..............500 
  At least 10 but less than 11 mpg above such standard...........1,000 
  At least 11 but less than 12 mpg above such standard...........1,500 
  At least 12 but less than 13 mpg above such standard...........2,000 
  At least 13 but less than 14 mpg above such standard...........2,500 
  At least 14 mpg above such standard............................3,000.
       ``(c) New Automobile.--For purposes of this section, the 
     term `new automobile' means a passenger automobile or non-
     passenger automobile--
       ``(1) the original use of which commences with the 
     taxpayer,
       ``(2) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(3) which is made by a manufacturer.
       ``(d) Passenger Automobile; Non-Passenger Automobile.--For 
     purposes of this section--
       ``(1) Passenger automobile.--The term `passenger 
     automobile' has the meaning given the term `automobile' by 
     section 4064(b)(1).
       ``(2) Non-passenger automobile.--
       ``(A) In general.--The term `non-passenger automobile' 
     means any automobile (as defined in section 4064(b)(1)(A)), 
     but only if such automobile is described in subparagraph (B).
       ``(B) Non-passenger automobiles described.--An automobile 
     is described in this subparagraph if such automobile is--
       ``(i) a vehicle which does not have a primary load carrying 
     device or container attached,
       ``(ii) a vehicle which has a seating capacity of more than 
     12 persons,
       ``(iii) a vehicle which has a seating capacity of more than 
     9 persons behind the driver's seat, or
       ``(iv) a vehicle which is equipped with a cargo area of at 
     least 6 feet in interior length which does not extend beyond 
     the frame of the vehicle and which is an open area or is 
     designed for use as an open area but is enclosed by a cap and 
     is not readily accessible directly from the passenger 
     compartment.
       ``(e) Other Definitions.--Except as provided in subsection 
     (d), for purposes of this section, any term used in this 
     section and also in section 4064 shall have the meaning given 
     such term by section 4064.
       ``(f) Special Rules.--For purposes of this section--
       ``(1)  Reduction in basis.--For purposes of this subtitle, 
     the basis of any property for which a credit is allowable 
     under subsection (a) shall be reduced by the amount of such 
     credit so allowed.
       ``(2) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter with respect to an 
     automobile described under subsection (b), shall be reduced 
     by the amount of credit allowed under subsection (a) for such 
     automobile for the taxable year.
       ``(3) Property used by tax-exempt entities.--In the case of 
     a credit amount which is allowable with respect to an 
     automobile which is acquired by an entity exempt from tax 
     under this chapter, the person which sells or leases such 
     automobile to the entity shall be treated as the taxpayer 
     with respect to the automobile for purposes of this section 
     and the credit shall be allowed to such person, but only if 
     the person clearly discloses to the entity at the time of any 
     sale or lease the specific amount of any credit otherwise 
     allowable to the entity under this section.
       ``(4) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit (including 
     recapture in the case of a lease period of less than the 
     economic life of an automobile).
       ``(5) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed under subsection (a) 
     with respect to any property referred to in section 50(b) or 
     with respect to the portion of the cost of any property taken 
     into account under section 179.
       ``(6) Election to not take credit.--No credit shall be 
     allowed under subsection (a) for any automobile if the 
     taxpayer elects to not have this section apply to such 
     automobile.
       ``(7) Interaction with air quality and motor vehicle safety 
     standards.--Unless otherwise provided in this section, an 
     automobile shall not be considered eligible for a credit 
     under this section unless such automobile is in compliance 
     with--
       ``(A) the applicable provisions of the Clean Air Act for 
     the applicable make and model year of the automobile (or 
     applicable air quality provisions of State law in the case of 
     a State which has adopted such provision under a waiver under 
     section 209(b) of the Clean Air Act), and
       ``(B) the motor vehicle safety provisions of sections 30101 
     through 30169 of title 49, United States Code.
       ``(g) Regulations.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall promulgate such regulations as necessary to 
     carry out the provisions of this section.
       ``(2) Coordination in prescription of certain 
     regulations.--The Secretary of the Treasury, in coordination 
     with the Secretary of Transportation and the Administrator of 
     the Environmental Protection Agency, shall prescribe such 
     regulations as necessary to determine whether an automobile 
     meets the requirements to be eligible for a credit under this 
     section.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (27), by striking the period at the end of 
     paragraph (28) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(29) to the extent provided in section 36(f)(1).''.
       (2) Section 6501(m) is amended by inserting ``36(f)(6),'' 
     after ``30(d)(4),''.
       (3) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``, or 
     from section 36 of such Code''.
       (4) The table of sections for subpart C of part IV of 
     chapter 1 is amended by striking the last item and inserting 
     the following new items:

``Sec. 36. Highly fuel-efficient automobile credit.
``Sec. 37. Overpayments of tax.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after October 31, 
     2005, in taxable years ending after such date.
                                 ______
                                 
  SA 2411. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       In section 139 of title 23, United States Code, as added by 
     section 1201 of the amendment--
       (1) strike ``Set-aside.--'' in subsection (b)(2) and insert 
     ``Funding.--'';
       (2) strike ``of the amounts made available'' in subsection 
     (b)(2) and insert ``the amounts made available'';
       (3) strike ``$439,000,000'' in subsection (b)(2);
       (4) strike ``allocated'' in subsection (c)(1)(A) and insert 
     ``apportioned'';
       (5) strike ``subsection (d),'' in subsection (c)(1)(B) and 
     insert ``subsection (e).'';
       (6) redesignate subsections (d) and (e) as subsections (e) 
     and (f), respectively, and insert the following after 
     subsection (c):
       ``(d) Distribution of Funds.--
       ``(1) Infrastructure performance and maintenance program 
     distribution.--Notwithstanding section 1101(13) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2004, and in lieu of the amounts authorized by that 
     section, there are authorized to be appropriated out of the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     carrying out the infrastructure performance and maintenance 
     program under this section--
       ``(A) $2,000,000,000 for each of fiscal years 2004 and 
     2005; and
       ``(B) $1,750,000,000 for each of fiscal years 2006, 2007, 
     and 2008.
       ``(2) Equity distribution.--On October 1 of each fiscal 
     year, the Secretary shall reserve a sufficient amount of the 
     funding available to carry out this section to provide a 
     final equity adjustment, after making the apportionment under 
     section 105 of this title, for each State to increase the 
     percentage return of all highway apportionments, as compared 
     to the tax payments attributable to the States paid into the 
     Highway Trust Fund (other than the Mass Transit Account), 
     to--
       ``(A) for fiscal year 2005, 91 percent;

[[Page S1111]]

       ``(B) for fiscal year 2006, 92 percent;
       ``(C) for fiscal year 2007, 93 percent;
       ``(D) for fiscal year 2008, 94 percent; and
       ``(E) for fiscal year 2009, 95 percent.
       ``(3) Remainder distribution.--On October 1 of each fiscal 
     year, the Secretary shall apportion the funds available for 
     allocation under this section among the several States, after 
     the application of paragraph (1), according to the ratio 
     that--
       ``(1) the percentage of tax payments attributable to 
     highway users in each State paid into the Highway Trust Fund 
     (other than the Mass Transit Account), bears to
       ``(2) 100 percent of tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account).''; and
       (7) strike subsection (e), as redesignated, and insert the 
     following:
       ``(e) Redistribution of Allocated Funds and Obligation 
     Authority.--On the date that is 180 days after the date of 
     apportionment, or as soon thereafter as practicable, for each 
     fiscal year, the Secretary shall--

       ``(1) withdraw--
       ``(A) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(B) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(13) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(2) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(A) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(B) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(f) Application With Section 105.--Nothwithstanding 
     section 105(a)(2)(H) of this title, section 105(a) shall not 
     apply to funds apportioned under this section.''.
       (e) Funding Cap From Highway Trust Fund.--Prior to making 
     any apportionments or allocations under Chapter 1 of USC 23 
     for fiscal year 2009, the Secretary shall compare the sum of 
     all apportionments and allocations for fiscal years 2004 
     through 2008 plus the projected apportionments and 
     allocations for fiscal year 2009 to the funding cap of 
     $255,000,000,000. If the total sum of such apportionments and 
     allocations exceeds the funding cap of $255,000,000,000, the 
     Secretary shall proportionally reduce all apportionments and 
     allocations for fiscal year 2009 so the total sum equals 
     $255,000,000,000.
                                 ______
                                 
  SA 2412. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of section 4522, insert the following:
       (b) Conforming Amendments.--
       (1) In general.--Section 3 of the Dingell-Johnson Sport 
     Fish Restoration Act (16 U.S.C. 777b) is amended--
       (A) by striking ``Sport Fish Restoration Account'' and 
     inserting ``Sport Fish Restoration Trust Fund''; and
       (B) by striking ``that Account'' and inserting ``that Trust 
     Fund, except as provided in section 9504(c) of the Internal 
     Revenue Code of 1986''.
       (2) Effective date.--The amendments made by paragraph (1) 
     take effect on October 1, 2004.
                                 ______
                                 
  SA 2413. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 115, between lines 9 and 10, insert the following:

     SEC. 13__. HIGHWAY USE TAX EVASION PROJECTS.

       (a) Projects.--Section 143(b) of title 23, United States 
     Code, is amended--
       (1) in paragraph (2), by inserting before the period at the 
     end the following: ``, except that, for each of fiscal years 
     2004 through 2009, $2,000,000 shall be available only to 
     carry out intergovernmental enforcement efforts, including 
     research and training'';
       (2) in paragraph (3), by inserting before the period at the 
     end the following: ``, except as otherwise provided in this 
     section'';
       (3) in paragraph (4)--
       (A) in subparagraph (F), by striking ``and'' at the end;
       (B) in subparagraph (G), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(H) to support efforts between States and Indian tribes 
     to address issues relating to State motor fuel taxes; and
       ``(I) to analyze and implement programs to reduce tax 
     evasion associated with foreign imported fuel.''; and
       (4) by adding at the end the following:
       ``(9) Reports.--
       ``(A) In general.--The Commissioner of the Internal Revenue 
     Service and participating States shall submit to the 
     Secretary annual reports that describe the projects, 
     examinations, and criminal investigations funded by and 
     carried out under this section.
       ``(B) Yield.--The reports shall specify the annual yield 
     estimated for each project funded under this section.''.
       (b) Excise Summary Terminal Activity Reporting System.--
     Section 143(c) of title 23, United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``Not later than August 1, 1998,'' and 
     inserting ``Not later than 90 days after the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004,'';
       (B) by striking ``development'' and inserting ``completion, 
     operation,'';
       (C) by striking ``an excise fuel reporting system'' and 
     inserting ``the excise summary terminal activity reporting 
     system''; and
       (D) by striking ``(in this subsection referred to as the 
     `system')'';
       (2) in paragraph (2)--
       (A) by striking ``the system'' each place it appears and 
     inserting ``the excise summary terminal activity reporting 
     system'';
       (B) in subparagraph (A), by striking ``develop'' and 
     inserting ``complete, operate,'';
       (C) in subparagraph (B), by striking ``and'' at the end;
       (D) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (E) by adding at the end the following:
       ``(D) the Commissioner of the Internal Revenue Service 
     shall submit to the Secretary, and the Secretary shall 
     approve, a budget and project plan for the completion, 
     operation, and maintenance of the excise summary terminal 
     activity reporting system.''; and
       (3) by striking paragraph (3) and inserting the following:
       ``(3) Funding.--Of the amounts made available to carry out 
     this section for each of fiscal years 2004 through 2009, the 
     Secretary shall make funds available to the Internal Revenue 
     Service to complete, operate, and maintain the excise summary 
     terminal activity reporting system in accordance with this 
     subsection.''.
       (c) Registration System and Electronic Database.--Section 
     143 of title 23, United States Code, is amended by adding at 
     the end the following:
       ``(d) Pipeline, Vessel, and Barge Registration System.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004, the Secretary shall enter 
     into a memorandum of understanding with the Commissioner of 
     the Internal Revenue Service for the purposes of the 
     development, operation, and maintenance of a registration 
     system for pipelines, vessels, and barges, and operators of 
     the pipelines, vessels, and barges, that make bulk transfers 
     of taxable fuel.
       ``(2) Elements of memorandum of understanding.--The 
     memorandum of understanding shall provide that--
       ``(A) the Internal Revenue Service shall develop, operate, 
     and maintain the registration system through contracts;
       ``(B) the Commissioner of the Internal Revenue Service 
     shall submit to the Secretary, and the Secretary shall 
     approve, a budget and project plan for development, 
     operation, and maintenance of the registration system;
       ``(C) the registration system shall be under the control of 
     the Internal Revenue Service; and
       ``(D) the registration system shall be made available for 
     use by appropriate State and Federal revenue, tax, and law 
     enforcement authorities, subject to section 6103 of the 
     Internal Revenue Code of 1986.
       ``(3) Funding.--Of the amounts made available to carry out 
     this section for each of fiscal years 2004 through 2009, the 
     Secretary shall make funds available to the Internal Revenue 
     Service to complete, operate, and maintain in accordance with 
     this subsection the registration system described in 
     paragraph (1).
       ``(e) Heavy Vehicle Use Tax Payment Database.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004, the Secretary shall enter 
     into a memorandum of understanding with the Commissioner of 
     the Internal Revenue Service for the purposes of the 
     development, operation, and maintenance of an electronic 
     database for heavy vehicle highway use tax payments.
       ``(2) Elements of memorandum of understanding.--The 
     memorandum of understanding shall provide that--
       ``(A) the Internal Revenue Service shall develop, operate, 
     and maintain the electronic database through contracts;
       ``(B) the Commissioner of the Internal Revenue Service 
     shall submit and the Secretary shall approve a budget and 
     project plan for establishment, operation, and maintenance of 
     the electronic database;
       ``(C) the electronic database shall be under the control of 
     the Internal Revenue Service; and
       ``(D) the electronic database shall be made available for 
     use by appropriate State and Federal revenue, tax, and law 
     enforcement authorities, subject to section 6103 of the 
     Internal Revenue Code of 1986.
       ``(3) Funding.--Of the amounts made available to carry out 
     this section for each of fiscal years 2004 through 2009, the 
     Secretary shall make funds available to the Internal Revenue 
     Service to establish, operate, and maintain in accordance 
     with this subsection

[[Page S1112]]

     the electronic database described in paragraph (1).
       ``(f) Reports.--Not later than March 30 and September 30 of 
     each year, the Internal Revenue Service shall submit to the 
     Secretary reports on the status of the Internal Revenue 
     Service projects funded under this section relating to--
       ``(1) the excise summary terminal activity reporting system 
     under subsection (c);
       ``(2) the pipeline, vessel, and barge registration system 
     under subsection (d); and
       ``(3) the heavy vehicle use tax electronic database under 
     subsection (e).''.
       (d) Allocations.--Of the amounts made available under 
     section 104(a)(1) of title 23, United States Code, there 
     shall made available for highway use tax evasion projects the 
     following amounts:
       (1) For each of fiscal years 2004 through 2009, $4,500,000 
     shall be allocated to the States.
       (2) For fiscal year 2004, $20,050,000 shall be allocated to 
     the Internal Revenue Service, of which $10,500,000 shall be 
     used for the excise summary terminal activity reporting 
     system.
       (3) For each of fiscal years 2005 and 2006, $48,000,000 
     shall be allocated to the Internal Revenue Service, of which 
     $4,500,000 shall be used for the excise summary terminal 
     activity reporting system.
       (4) For fiscal year 2007, $38,000,000 shall be allocated to 
     the Internal Revenue Service, of which $4,500,000 shall be 
     used for the excise summary terminal activity reporting 
     system.
       (5) For each of fiscal years 2008 and 2009, $4,500,000 
     shall be allocated to the Internal Revenue Service, which 
     shall be used for the excise summary terminal activity 
     reporting system.
                                 ______
                                 
  SA 2414. Mr. NICKLES submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1298, strike lines 16 through 24, and insert:

                        PART IV--SENSE OF SENATE

       It is the sense of the Senate that highway spending should 
     not be funded using a shift in corporate estimated tax 
     receipts.
                                 ______
                                 
  SA 2415. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 737, between lines 17 and 18, insert the following 
     new paragraph:
       (4) by inserting after subsection (e), as redesignated, the 
     following:
       ``(f) Minimum Apportionment and Criteria.--
       ``(1) Minimum apportionment.--Notwithstanding any other 
     provision of this section, the Secretary shall grant to any 
     State that qualifies under paragraph (2) and has not 
     received, as a result of other provisions of this section, at 
     least \1/2\ of 1 percent of the total funds authorized for a 
     fiscal year for grants under this section, such additional 
     funds as are necessary to result in such State receiving \1/
     2\ of 1 percent of the total funds authorized for grants 
     under this section for that fiscal year. Funds for grants 
     under this subsection shall be derived from pro-rata 
     reduction of grant amounts that otherwise would be awarded 
     pursuant to other subsections of this section.
       ``(2) Criteria.--To qualify for a grant under this 
     subsection, a State--
       ``(A) shall meet the requirements of subsection (a)(2) of 
     this section; and
       ``(B) shall--
       ``(i) meet 3 of the 6 criteria for qualifying for grants 
     under this section (as this section was in effect for fiscal 
     year 2003 funding); or
       ``(ii) for the most recent year for which data is 
     available, have a seat belt utilization rate that is either 
     higher than the national average for that year or higher than 
     the utilization rate in that State in the second most recent 
     year for which data is available.
       ``(3) Uses of funds.--Grants under this subsection may be 
     used for--
       ``(A) any activity that was an eligible use of grants under 
     this section for fiscal year 2003;
       ``(B) any activity otherwise eligible under this section, 
     other than activities that are made eligible only for those 
     States that meet the criteria set forth in subparagraph 
     (b)(2)(A) of this section; and
       ``(C) any other activity undertaken by the State for the 
     purpose of increasing seat belt utilization unless 
     disapproved by the Secretary on the basis that it bears no 
     relation to that objective.''.
                                 ______
                                 
  SA 2416. Mr. BAYH (for himself, Mr. Lugar, and Mrs. Clinton) 
submitted an amendment intended to be proposed to amendment SA 2285 
proposed by Mr. Inhofe  to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 393, after line 19, add the following:

                     Subtitle J--Clean School Buses

     SEC. 1911. DEFINITIONS.

       In this subtitle:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Alternative fuel.--The term ``alternative fuel'' means 
     liquefied natural gas, compressed natural gas, liquefied 
     petroleum gas, hydrogen, propane, or methanol or ethanol at 
     no less than 85 percent by volume.
       (3) Alternative fuel school bus.--The term ``alternative 
     fuel school bus'' means a school bus that meets all of the 
     requirements of this subtitle and is operated solely on an 
     alternative fuel.
       (4) Emissions control retrofit technology.--The term 
     ``emissions control retrofit technology'' means a particulate 
     filter or other emissions control equipment that is verified 
     or certified by the Administrator or the California Air 
     Resources Board as an effective emission reduction technology 
     when installed on an existing school bus.
       (5) Idling.--The term ``idling'' means operating an engine 
     while remaining stationary for more than approximately 15 
     minutes, except that the term does not apply to routine 
     stoppages associated with traffic movement or congestion.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (7) Ultra-low sulfur diesel fuel.--The term ``ultra-low 
     sulfur diesel fuel'' means diesel fuel that contains sulfur 
     at not more than 15 parts per million.
       (8) Ultra-low sulfur diesel fuel school bus.--The term 
     ``ultra-low sulfur diesel fuel school bus'' means a school 
     bus that meets all of the requirements of this subtitle and 
     is operated solely on ultra-low sulfur diesel fuel.

     SEC. 1912. PROGRAM FOR REPLACEMENT OF CERTAIN SCHOOL BUSES 
                   WITH CLEAN SCHOOL BUSES.

       (a) Establishment.--The Administrator, in consultation with 
     the Secretary and other appropriate Federal departments and 
     agencies, shall establish a program for awarding grants on a 
     competitive basis to eligible entities for the replacement of 
     existing school buses manufactured before model year 1991 
     with alternative fuel school buses and ultra-low sulfur 
     diesel fuel school buses.
       (b) Requirements.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall establish and 
     publish in the Federal Register grant requirements on 
     eligibility for assistance, and on implementation of the 
     program established under subsection (a), including 
     instructions for the submission of grant applications and 
     certification requirements to ensure compliance with this 
     subtitle.
       (2) Application deadlines.--The requirements established 
     under paragraph (1) shall require submission of grant 
     applications not later than--
       (A) in the case of the first year of program 
     implementation, the date that is 180 days after the 
     publication of the requirements in the Federal Register; and
       (B) in the case of each subsequent year, June 1 of the 
     year.
       (c) Eligible Recipients.--A grant shall be awarded under 
     this section only--
       (1) to 1 or more local or State governmental entities 
     responsible for providing school bus service to 1 or more 
     public school systems or responsible for the purchase of 
     school buses;
       (2) to 1 or more contracting entities that provide school 
     bus service to 1 or more public school systems, if the grant 
     application is submitted jointly with the 1 or more school 
     systems to be served by the buses, except that the 
     application may provide that buses purchased using funds 
     awarded shall be owned, operated, and maintained exclusively 
     by the 1 or more contracting entities; or
       (3) to a nonprofit school transportation association 
     representing private contracting entities, if the association 
     has notified and received approval from the 1 or more school 
     systems to be served by the buses.
       (d) Award Deadlines.--
       (1) In general.--Subject to paragraph (2), the 
     Administrator shall award a grant made to a qualified 
     applicant for a fiscal year--
       (A) in the case of the first fiscal year of program 
     implementation, not later than the date that is 90 days after 
     the application deadline established under subsection (b)(2); 
     and
       (B) in the case of each subsequent fiscal year, not later 
     than August 1 of the fiscal year.
       (2) Insufficient number of qualified grant applications.--
     If the Administrator does not receive a sufficient number of 
     qualified grant applications to meet the requirements of 
     subsection (i)(1) for a fiscal year, the Administrator shall 
     award a grant made to a qualified applicant under subsection 
     (i)(2) not later than September 30 of the fiscal year.
       (e) Types of Grants.--
       (1) In general.--A grant under this section shall be used 
     for the replacement of school buses manufactured before model 
     year 1991 with alternative fuel school buses and ultra-low 
     sulfur diesel fuel school buses.
       (2) No economic benefit.--Other than the receipt of the 
     grant, a recipient of a grant under this section may not 
     receive any economic benefit in connection with the receipt 
     of the grant.

[[Page S1113]]

       (3) Priority of grant applications.--The Administrator 
     shall give priority to applicants that propose to replace 
     school buses manufactured before model year 1977.
       (f) Conditions of Grant.--A grant provided under this 
     section shall include the following conditions:
       (1) School bus fleet.--All buses acquired with funds 
     provided under the grant shall be operated as part of the 
     school bus fleet for which the grant was made for a minimum 
     of 5 years.
       (2) Use of funds.--Funds provided under the grant may only 
     be used--
       (A) to pay the cost, except as provided in paragraph (3), 
     of new alternative fuel school buses or ultra-low sulfur 
     diesel fuel school buses, including State taxes and contract 
     fees associated with the acquisition of such buses; and
       (B) to provide--
       (i) up to 20 percent of the price of the alternative fuel 
     school buses acquired, for necessary alternative fuel 
     infrastructure if the infrastructure will only be available 
     to the grant recipient; and
       (ii) up to 25 percent of the price of the alternative fuel 
     school buses acquired, for necessary alternative fuel 
     infrastructure if the infrastructure will be available to the 
     grant recipient and to other bus fleets.
       (3) Grant recipient funds.--The grant recipient shall be 
     required to provide at least--
       (A) in the case of a grant recipient described in paragraph 
     (1) or (3) of subsection (c), the lesser of--
       (i) an amount equal to 15 percent of the total cost of each 
     bus received; or
       (ii) $15,000 per bus; and
       (B) in the case of a grant recipient described in 
     subsection (c)(2), the lesser of--
       (i) an amount equal to 20 percent of the total cost of each 
     bus received; or
       (ii) $20,000 per bus.
       (4) Ultra-low sulfur diesel fuel.--In the case of a grant 
     recipient receiving a grant for ultra-low sulfur diesel fuel 
     school buses, the grant recipient shall be required to 
     provide documentation to the satisfaction of the 
     Administrator that diesel fuel containing sulfur at not more 
     than 15 parts per million is available for carrying out the 
     purposes of the grant, and a commitment by the applicant to 
     use such fuel in carrying out the purposes of the grant.
       (5) Timing.--All alternative fuel school buses, ultra-low 
     sulfur diesel fuel school buses, or alternative fuel 
     infrastructure acquired under a grant awarded under this 
     section shall be purchased and placed in service as soon as 
     practicable.
       (g) Buses.--
       (1) In general.--Except as provided in paragraph (2), 
     funding under a grant made under this section for the 
     acquisition of new alternative fuel school buses or ultra-low 
     sulfur diesel fuel school buses shall only be used to acquire 
     school buses--
       (A) with a gross vehicle weight of greater than 14,000 
     pounds;
       (B) that are powered by a heavy duty engine;
       (C) in the case of alternative fuel school buses 
     manufactured in model years 2004 through 2006, that emit not 
     more than 1.8 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter; and
       (D) in the case of ultra-low sulfur diesel fuel school 
     buses manufactured in model years 2004 through 2006, that 
     emit not more than 2.5 grams per brake horsepower-hour of 
     nonmethane hydrocarbons and oxides of nitrogen and .01 grams 
     per brake horsepower-hour of particulate matter.
       (2) Limitations.--A bus shall not be acquired under this 
     section that emits nonmethane hydrocarbons, oxides of 
     nitrogen, or particulate matter at a rate greater than the 
     best performing technology of the same class of ultra-low 
     sulfur diesel fuel school buses commercially available at the 
     time the grant is made.
       (h) Deployment and Distribution.--The Administrator shall--
       (1) seek, to the maximum extent practicable, to achieve 
     nationwide deployment of alternative fuel school buses and 
     ultra-low sulfur diesel fuel school buses through the program 
     under this section; and
       (2) ensure a broad geographic distribution of grant awards, 
     with a goal of no State receiving more than 10 percent of the 
     grant funding made available under this section for a fiscal 
     year.
       (i) Allocation of Funds.--
       (1) In general.--Subject to paragraph (2), of the amount of 
     grant funding made available to carry out this section for 
     any fiscal year, the Administrator shall use--
       (A) 70 percent for the acquisition of alternative fuel 
     school buses or supporting infrastructure; and
       (B) 30 percent for the acquisition of ultra-low sulfur 
     diesel fuel school buses.
       (2) Insufficient number of qualified grant applications.--
     After the first fiscal year in which this program is in 
     effect, if the Administrator does not receive a sufficient 
     number of qualified grant applications to meet the 
     requirements of subparagraph (A) or (B) of paragraph (1) for 
     a fiscal year, effective beginning on August 1 of the fiscal 
     year, the Administrator shall make the remaining funds 
     available to other qualified grant applicants under this 
     section.
       (j) Reduction of School Bus Idling.--Each local educational 
     agency (as defined in section 9101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7801)) that 
     receives Federal funds under the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.) is encouraged 
     to develop a policy, consistent with the health, safety, and 
     welfare of students and the proper operation and maintenance 
     of school buses, to reduce the incidence of unnecessary 
     school bus idling at schools when picking up and unloading 
     students.
       (k) Annual Report.--
       (1) In general.--Not later than January 31 of each year, 
     the Administrator shall transmit to Congress a report 
     evaluating implementation of the programs under this section 
     and section 1913.
       (2) Components.--The reports shall include a description 
     of--
       (A) the total number of grant applications received;
       (B) the number and types of alternative fuel school buses, 
     ultra-low sulfur diesel fuel school buses, and retrofitted 
     buses requested in grant applications;
       (C) grants awarded and the criteria used to select the 
     grant recipients;
       (D) certified engine emission levels of all buses purchased 
     or retrofitted under the programs under this section and 
     section 1913;
       (E) an evaluation of the in-use emission level of buses 
     purchased or retrofitted under the programs under this 
     section and section 1913; and
       (F) any other information the Administrator considers 
     appropriate.
       (l) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator to carry out this 
     section, to remain available until expended--
       (1) $45,000,000 for fiscal year 2005;
       (2) $65,000,000 for fiscal year 2006;
       (3) $90,000,000 for fiscal year 2007; and
       (4) such sums as are necessary for each of fiscal years 
     2008 and 2009.

     SEC. 1913. DIESEL RETROFIT PROGRAM.

       (a) Establishment.--The Administrator, in consultation with 
     the Secretary, shall establish a program for awarding grants 
     on a competitive basis to entities for the installation of 
     retrofit technologies for diesel school buses.
       (b) Eligible Recipients.--A grant shall be awarded under 
     this section only--
       (1) to a local or State governmental entity responsible for 
     providing school bus service to 1 or more public school 
     systems;
       (2) to 1 or more contracting entities that provide school 
     bus service to 1 or more public school systems, if the grant 
     application is submitted jointly with the 1 or more school 
     systems that the buses will serve, except that the 
     application may provide that buses purchased using funds 
     awarded shall be owned, operated, and maintained exclusively 
     by the 1 or more contracting entities; or
       (3) to a nonprofit school transportation association 
     representing private contracting entities, if the association 
     has notified and received approval from the 1 or more school 
     systems to be served by the buses.
       (c) Awards.--
       (1) In general.--The Administrator shall seek, to the 
     maximum extent practicable, to ensure a broad geographic 
     distribution of grants under this section.
       (2) Preferences.--In making awards of grants under this 
     section, the Administrator shall give preference to proposals 
     that--
       (A) will achieve the greatest reductions in emissions of 
     nonmethane hydrocarbons, oxides of nitrogen, or particulate 
     matter per proposal or per bus; or
       (B) involve the use of emissions control retrofit 
     technology on diesel school buses that operate solely on 
     ultra-low sulfur diesel fuel.
       (d) Conditions of Grant.--A grant shall be provided under 
     this section on the conditions that--
       (1) buses on which retrofit emissions-control technology 
     are to be demonstrated--
       (A) will operate on ultra-low sulfur diesel fuel where such 
     fuel is reasonably available or required for sale by State or 
     local law or regulation;
       (B) were manufactured in model year 1991 or later; and
       (C) will be used for the transportation of school children 
     to and from school for a minimum of 5 years;
       (2) grant funds will be used for the purchase of emission 
     control retrofit technology, including State taxes and 
     contract fees; and
       (3) grant recipients will provide at least 15 percent of 
     the total cost of the retrofit, including the purchase of 
     emission control retrofit technology and all necessary labor 
     for installation of the retrofit.
       (e) Verification.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall publish in the 
     Federal Register procedures to verify--
       (1) the retrofit emissions-control technology to be 
     demonstrated;
       (2) that buses powered by ultra-low sulfur diesel fuel on 
     which retrofit emissions-control technology are to be 
     demonstrated will operate on diesel fuel containing not more 
     than 15 parts per million of sulfur; and
       (3) that grants are administered in accordance with this 
     section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator to carry out this 
     section, to remain available until expended--
       (1) $20,000,000 for fiscal year 2005;
       (2) $35,000,000 for fiscal year 2006;
       (3) $45,000,000 for fiscal year 2007; and
       (4) such sums as are necessary for each of fiscal years 
     2008 and 2009.

[[Page S1114]]

                                 ______
                                 
  SA 2417. Mr. HARKIN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 730, strike line 18 and insert the following:
       ``(4) Use of simulation technology.--The Secretary shall 
     use simulation studies to better understand the human factors 
     involved in the research areas described in paragraph (1) and 
     to find possible accident reducing methods where practical.
       ``(5) Reports.--
       On page 734, line 8, insert ``, including simulation 
     studies,'' after ``activities''.
                                 ______
                                 
  SA 2418. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 527, line 1, strike ``intercity passenger rail,''.
                                 ______
                                 
  SA 2419. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 524, line 16, insert ``and intercity rail'' after 
     ``intercity bus''.
                                 ______
                                 
  SA 2420. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 522, line 21, insert ``, which are coordinated with 
     other modes of transportation,'' after ``systems''.
                                 ______
                                 
  SA 2421. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 590, strike line 9, and insert the following:
     subrecipient of assistance under section 5310.
       ``(D) Statewide transit provider grantees.--A statewide 
     transit provider that receives a grant under this section 
     shall be subject to the terms, conditions, requirements, and 
     provisions of this section or section 5311, consistent with 
     the scope and purpose of the grant and the location of the 
     project.'';
                                 ______
                                 
  SA 2422. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 594, strike lines 15 through 17, and insert the 
     following:
       ``(E) reductions in local infrastructure costs achieved 
     through compact land use development and positive impacts on 
     the capacity, utilization, or longevity of other surface 
     transportation assets and facilities;
                                 ______
                                 
  SA 2423. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 542, strike line 24 and all that follows 
     through page 543, line 6, and insert the following:
       ``(A) an identification of transportation facilities, 
     including major roadways, transit, multimodal and intermodal 
     facilities, intermodal connectors, and other relevant 
     facilities identified by the metropolitan planning 
     organization, which should function as an integrated 
     metropolitan transportation system, emphasizing those 
     facilities that serve important national and regional 
     transportation functions;
                                 ______
                                 
  SA 2424. Mr. ROCKEFELLER submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike section 4152 and insert the following:

     SEC. 4152. VEHICLE CRASH EJECTION PREVENTION.

       (a) In General.--Subchapter II of chapter 301 is amended by 
     adding at the end the following:

     ``Sec. 30128. Vehicle accident ejection protection

       ``(a) In General.--The Secretary shall issue a safety 
     standard to reduce complete and partial ejection from 
     passenger motor vehicles with a gross vehicle weight rating 
     of up to 10,000 pounds that are involved in accidents that 
     present a risk of occupant ejection. The reduction in such 
     ejections shall be based on the combined ejection-mitigation 
     capabilities of safety technologies, such as advanced side 
     glazing, side curtains, and side impact air bags.
       ``(b) Door Lock and Retention Standard.--The Secretary 
     shall issue a rule to require manufacturers of new passenger 
     motor vehicles distributed in commerce for sale in the United 
     States to make such modifications to door locks, door 
     latches, and retention components of doors in such vehicles 
     as the Secretary determines to be necessary to prevent 
     occupant ejection in vehicle accidents.''.
       (b) Rulemaking Deadlines.--
       (1) Rulemaking.--The Secretary of Transportation shall 
     issue--
       (A) a notice of a proposed rulemaking under section 30128 
     of title 49, United States Code, not later than June 30, 
     2005; and
       (B) a final rule under that section not later than June 30, 
     2006.
       (2) Effective date of requirements.--Any requirement 
     imposed under the final rule issued under paragraph (1) shall 
     become fully effective no later than December 31, 2008.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $500,000 for each of fiscal years 2004 and 2005 to promulgate 
     rules under section 30128 of title 49, United States Code.
       (d) Conforming Amendment.--The chapter analysis for chapter 
     301 is amended by inserting after the item relating to 
     section 30127 the following:

``30128. Vehicle accident ejection protection.''.
                                 ______
                                 
  SA 2425. Mr. LOTT submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. MULTISTATE INTERNATIONAL CORRIDOR DEVELOPMENT 
                   PROGRAM.

       (a) Establishment.--The Secretary shall establish a program 
     to develop international trade corridors to facilitate the 
     movement of freight from international ports of entry through 
     and to the interior of the United States.
       (b) Eligible Recipients.--State transportation departments 
     and metropolitan planning organizations shall be eligible to 
     receive and administer funds provided under the program.
       (c) Eligible Activities.--The Secretary shall make 
     allocations under this program for any activity eligible for 
     funding under title 23, United States Code, including 
     multistate highway and multistate multimodal planning and 
     project construction.
       (d) Other Provisions Regarding Eligibility.--All activities 
     funded under this program shall be consistent with the 
     continuing, cooperative, and comprehensive planning processes 
     required by sections 134 and 135 of title 23, United States 
     Code.
       (e) Selection Criteria.--The Secretary shall only select 
     projects for corridors--
       (1) that have significant levels or increases in truck and 
     traffic volume relating to international freight movement;
       (2) connect to at least 1 international terminus;
       (3) traverse at least 3 States; and
       (4) are identified by section 115(c) of the Intermodal 
     Transportation Efficiency Act of 1991 (Public Law 102-240; 
     105 Stat. 2032).
       (f) Program Priorities.--In administering the program, the 
     Secretary shall--
       (1) encourage and enable States and other jurisdictions to 
     work together to develop plans for multimodal and 
     multijurisdictional transportation decisionmaking; and
       (2) give priority to studies that emphasize multimodal 
     planning, including planning for operational improvements 
     that increase mobility, freight productivity, access to 
     marine ports, safety, and security while enhancing the 
     environment.
       (g) Federal Share.--The Federal share required for any 
     study carried out under this section shall be available for 
     obligation in the same manner as if the funds were 
     apportioned under chapter I of title 23, United States Code.
                                 ______
                                 
  SA 2426. Mr. DASCHLE submitted an amendment intended to be proposed 
to

[[Page S1115]]

amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

         At the appropriate place, insert the following:

     SEC. ____. SENIOR TRANSPORTATION DEMONSTRATION PROJECT 
                   GRANTS.

       (a) Definitions.--As used in this section, the following 
     definitions shall apply:
       (1) Eligible entity.--The term ``eligible entity'' 
     includes--
       (A) States;
       (B) units of local government;
       (C) local transportation organizations;
       (D) nonprofit organizations;
       (E) Indian tribes; and
       (F) institutions of higher learning.
       (2) Senior citizen.--The term ``senior citizen'' means any 
     individual who has reached 65 years of age.
       (b) Grants Authorized.--The Secretary of Transportation 
     shall award demonstration project grants to 10 eligible 
     entities to establish mass transportation assistance pilot 
     programs to plan and provide adequate and appropriate 
     transportation for senior citizens.
       (c) Use of Funds.--Grant funds received under this section 
     may be used to--
       (1) evaluate the state of transportation services for 
     senior citizens;
       (2) recognize barriers to mobility that senior citizens 
     encounter in their communities;
       (3) establish partnerships and promote coordination among 
     community stakeholders, including public, not-for-profit, and 
     for-profit providers of transportation services for senior 
     citizens;
       (4) identify future transportation needs of senior citizens 
     within local communities;
       (5) establish strategies to meet the unique needs of 
     healthy and frail senior citizens; and
       (6) facilitate funding for operating expenses under section 
     5310 of title 49, United States Code.
       (d) Application.--
       (1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, at such place, and containing such 
     information as the Secretary may reasonably require.
       (2) Selection of grantees.--
       (A) In general.--The Secretary shall establish a committee, 
     comprised of transportation providers, transportation 
     planners, academicians, and consumers, who are interested in 
     and knowledgeable of senior transportation issues, to select 
     the eligible entities that will receive planning and direct 
     service transportation demonstration project grants under 
     this section.
       (B) Geographical representation.--Except as provided under 
     subparagraph (C), the committee described in subparagraph (A) 
     shall base its selection of grantees based on a fair 
     representation of various geographical locations throughout 
     the United States.
       (C) Pilot program states.--Not less than 1 grant shall be 
     awarded to eligible entities within each of the following 
     States:
       (i) Connecticut.
       (ii) South Dakota.
       (iii) Alabama.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated $10,000,000 for fiscal year 2005 to carry 
     out this section, which shall remain available until 
     expended.
                                 ______
                                 
  SA 2427. Mr. DASCHLE submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 36, strikes lines 11 through 20 and insert the 
     following:
       (i) $325,000,000 for fiscal year 2004;
       (ii) $350,000,000 for fiscal year 2005;
       (iii) $375,000,000 for fiscal year 2006;
       (iv) $400,000,000 for fiscal year 2007;
       (v) $425,000,000 for fiscal year 2008; and
       (vi) $425,000,000 for fiscal year 2009.
                                 ______
                                 
  SA 2428. Mr. DASCHLE submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 48, between lines 16 and 17, insert the following:
       (k) Amount of Obligation Limitation for Indian Reservation 
     Roads.--The amount of any obligation limitation for the 
     Indian reservation roads program shall be equal to the total 
     amount of contract authority made available for the Indian 
     reservation roads program for fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2429. Mr. DASCHLE submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 398 at the appropriate place insert the following:
       (H) $2,000,000 for fiscal year 2005 shall remain available 
     until expended for asphalt and asphalt-related reclamation 
     research at the South Dakota School of Mines.
                                 ______
                                 
  SA 2430. Mr. DORGAN submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 147, after the item following line 24, add the 
     following:

     SEC. 1409. OPEN CONTAINER REQUIREMENTS.

       Section 154 of title 23, United States Code, is amended by 
     striking subsection (c) and inserting the following:
       ``(c) Transfer of Funds.--
       ``(1) In general.--The Secretary shall withhold the 
     applicable percentage for the fiscal year of the amount 
     required to be apportioned for Federal-aid highways to any 
     State under each of paragraphs (1), (3), and (4) of section 
     104(b), if a State has not enacted or is not enforcing a 
     provision described in subsection (b), as follows:

``For:                                    The applicable percentage is:
Fiscal year 2008.............................................2 percent.
Fiscal year 2009.............................................2 percent.
Fiscal year 2010.............................................2 percent.
Fiscal year 2011 and each subsequent fiscal year.............2 percent.
       ``(2) Restoration.--If (during the 4-year period beginning 
     on the date the apportionment for any State is reduced in 
     accordance with this subsection) the Secretary determines 
     that the State has enacted and is enforcing a provision 
     described in subsection (b), the apportionment of the State 
     shall be increased by an amount equal to the amount of the 
     reduction made during the 4-year period.''.
                                 ______
                                 
  SA 2431. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 56, strike line 16 and all that follows 
     through page 57, line 2, and insert the following:
       ``(3) Minimum share of tax payments.--
       ``(A) In general.--Notwithstanding subsection (d), for each 
     fiscal year, the Secretary shall allocate among the States 
     amounts sufficient to ensure that no State receives a 
     percentage of apportionments for the fiscal year for the 
     programs specified in subsection (a)(2) that is less than the 
     applicable percentage under subparagraph (B) of estimated tax 
     payments attributable to highway users in the State paid into 
     the Highway Trust Fund (other than the Mass Transit Account) 
     in the most recent fiscal year for which data are available.
       ``(B) Minimum percentages.--The percentage referred to in 
     subparagraph (A) shall be--
       ``(i) for fiscal year 2004, 90.5 percent;
       ``(ii) for fiscal year 2005, 91 percent;
       ``(iii) for fiscal year 2006, 92 percent;
       ``(iv) for fiscal year 2007, 93 percent;
       ``(v) for fiscal year 2008, 94 percent; and
       ``(vi) for fiscal year 2009, 95 percent.
       ``(C) Adjustment.--Funding for the programs under 
     subsection (a)(2) shall be adjusted proportionately so that 
     the total funding proportioned complies with the obligation 
     limitations under section 1102 of the Safe, Accountable, 
     Flexible, and Efficient Equity Act of 2003.
                                 ______
                                 
  SA 2432. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe, to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       Beginning on page 52, strike line 1 and all that follows 
     through page 58, line 21, and insert the following:
       ``(1) In general.--Subject to subsections (c) and (e), for 
     each of fiscal years 2004 through 2009, the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a percentage of the total apportionments 
     for the fiscal year for the programs specified in paragraph 
     (2) that is less than the percentage calculated under 
     subsection (b).
       ``(2) Specific programs.--The programs referred to in 
     subsection (a) are--
       ``(A) the Interstate maintenance program under section 119;
       ``(B) the national highway system program under section 
     103;
       ``(C) the bridge program under section 144;
       ``(D) the surface transportation program under section 133;
       ``(E) the highway safety improvement program under section 
     148;
       ``(F) the congestion mitigation and air quality improvement 
     program under section 149;

[[Page S1116]]

       ``(G) metropolitan planning programs under section 104(f) 
     (other than planning programs funded by amounts provided 
     under the equity bonus program under this section);
       ``(H) the infrastructure performance and maintenance 
     program under section 139;
       ``(I) the equity bonus program under this section;
       ``(J) the Appalachian development highway system program 
     under subtitle IV of title 40;
       ``(K) the recreational trails program under section 206;
       ``(L) the safe routes to schools program under section 150; 
     and
       ``(M) the rail-highway grade crossing program under section 
     130.
       ``(b) State Percentage.--
       ``(1) In general.--The percentage referred to in subsection 
     (a) for each State shall be--
       ``(A) 95 percent of the quotient obtained by dividing--
       ``(i) the estimated tax payments attributable to highway 
     users in the State paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the most recent fiscal year 
     for which data are available; by
       ``(ii) the estimated tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account) for the fiscal year; or
       ``(B) for a State with a total population density of less 
     than 20 persons per square mile, as reported in the decennial 
     census conducted by the Federal Government in 2000, a total 
     population of less than 1,000,000, as reported in that 
     decennial census, or a median household income of less than 
     $35,000, as reported in that decennial census, the greater 
     of--
       ``(i) the percentage under paragraph (1); or
       ``(ii) the average percentage of the State's share of total 
     apportionments for the period of fiscal years 1998 through 
     2003 for the programs specified in paragraph (2).
       ``(2) Specific programs.--The programs referred to in 
     paragraph (1)(B)(ii) are (as in effect on the day before the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2004)--
       ``(A) the Interstate maintenance program under section 119;
       ``(B) the national highway system program under section 
     103;
       ``(C) the bridge program under section 144;
       ``(D) the surface transportation program under section 133;
       ``(E) the recreational trails program under section 206;
       ``(F) the high priority projects program under section 117;
       ``(G) the minimum guarantee provided under this section;
       ``(H) revenue aligned budget authority amounts provided 
     under section 110;
       ``(I) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(J) the Appalachian development highway system program 
     under subtitle IV of title 40; and
       ``(K) metropolitan planning programs under section 104(f).
       ``(c) Special Rules.--
       ``(1) Minimum combined allocation.--For each fiscal year, 
     before making the allocations under subsection (a)(1), the 
     Secretary shall allocate among the States amounts sufficient 
     to ensure that no State receives a combined total of amounts 
     allocated under subsection (a)(1), apportionments for the 
     programs specified in subsection (a)(2), and amounts 
     allocated under this subsection, that is less than 110 
     percent of the average for fiscal years 1998 through 2003 of 
     the annual apportionments for the State for all programs 
     specified in subsection (b)(2).
       ``(2) No negative adjustment.--Notwithstanding subsection 
     (e), no negative adjustment shall be made under subsection 
     (a)(1) to the apportionment of any State.
       ``(3) Minimum share of tax payments.--Notwithstanding 
     subsection (e), for each fiscal year, the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a percentage of apportionments for the 
     fiscal year for the programs specified in subsection (a)(2) 
     that is less than 90.5 percent of the percentage share of the 
     State of estimated tax payments attributable to highway users 
     in the State paid into the Highway Trust Fund (other than the 
     Mass Transit Account) in the most recent fiscal year for 
     which data are available.
       ``(d) Final Equity Bonus.--A final equity adjustment shall 
     be made for all States to raise the percentage return of all 
     highway apportionments and allocations, as compared with the 
     tax payments attributable to that State paid into the Highway 
     Trust Fund (other than the Mass Transit Account), to the 
     following percentages:
       ``(1) Fiscal year 2005, 91 percent.
       ``(2) Fiscal year 2006, 92 percent.
       ``(3) Fiscal year 2007, 93 percent.
       ``(4) Fiscal year 2008, 94 percent.
       ``(5) Fiscal year 2009, 95 percent.
       ``(e) Limitation on Adjustments.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3) of subsection (c), no State shall receive, for any fiscal 
     year, additional amounts under subsection (a)(1) if--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceed
       ``(B) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2).
       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B) are--
       ``(A) for fiscal year 2004, 120 percent;
       ``(B) for fiscal year 2005, 130 percent;
       ``(C) for fiscal year 2006, 134 percent;
       ``(D) for fiscal year 2007, 137 percent;
       ``(E) for fiscal year 2008, 145 percent; and
       ``(F) for fiscal year 2009, 250 percent.
       ``(f) Programmatic Distribution of Funds.--The Secretary 
     shall apportion the amounts made available under this section 
     so that the amount apportioned to each State under this 
     section for each program referred to in subparagraphs (A) 
     through (G) of subsection (a)(2) is equal to the amount 
     determined by multiplying the amount to be apportioned under 
     this section by the proportion that--
       ``(1) the amount of funds apportioned to each State for 
     each program referred to in subparagraphs (A) through (G) of 
     subsection (a)(2) for a fiscal year; bears to
       ``(2) the total amount of funds apportioned to each State 
     for all such programs for the fiscal year.
       ``(g) Metro Planning Set Aside.--Notwithstanding section 
     104(f), no set aside provided for under that section shall 
     apply to funds allocated under this section.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account) such sums as are 
     necessary to carry out this section for each of fiscal years 
     2004 through 2009.''.
                                 ______
                                 
  SA 2433. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe, to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       Beginning on page 63, strike line 23 and all that follows 
     through page 64, line 2, and insert the following:
       ``(2) Equity bonus.--A sufficient amount of funding 
     available to carry out this section shall be reserved to 
     provide a final equity adjustment for each State to increase 
     the percentage return of all highway apportionments and 
     allocations, as compared to the tax payments attributable to 
     the State paid into the Highway Trust Fund (other than the 
     Mass Transit Account), to--
       ``(A) for fiscal year 2005, 91 percent;
       ``(B) for fiscal year 2006, 92 percent;
       ``(C) for fiscal year 2007, 93 percent;
       ``(D) for fiscal year 2008, 94 percent; and
       ``(E) for fiscal year 2009, 95 percent.
                                 ______
                                 
  SA 2435. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe, to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 57, strike line 6 and all that follows through line 
     23 and insert the following:
     receive, for any of fiscal years 2004 through 2008, 
     additional amounts under subsection (a)(1) if--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceed
       ``(B) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2).
       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B) are--
       ``(A) for fiscal year 2004, 120 percent;
       ``(B) for fiscal year 2005, 130 percent;
       ``(C) for fiscal year 2006, 134 percent;
       ``(D) for fiscal year 2007, 137 percent; and
       ``(E) for fiscal year 2008, 145 percent.
                                 ______
                                 
  SA 2431. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1030, after line 21, add the following:

     SEC. 5004. INCREASE IN HIGHWAY FUELS TAX RATE.

       (a) In General.--Section 4081(a)(2)(A) (relating to rates 
     of tax) is amended--
       (1) by striking ``18.3 cents'' in clause (i) and inserting 
     ``23.1 cents'', and
       (2) by striking ``24.3 cents'' in clause (ii) and inserting 
     ``30.7 cents''.
       (b) Secretarial Adjustment.--Notwithstanding any provision 
     of the Internal Revenue Code of 1986 to the contrary, not 
     later than 30 days before the tax increase date (as defined 
     in subsection (d)(3)(F)), the Secretary of the Treasury shall 
     determine and provide for the proper rate, exemption, and 
     credit adjustments necessary to maintain a comparable rate 
     reduction to the rate imposed such date on gasoline, diesel 
     fuel, or kerosene under section 4081 of the Internal Revenue 
     Code of 1986 for any fuel, fuel mixture, or fuel use with 
     respect to which such a reduction is in effect on such date.
       (c) Floor Stocks Tax.--
       (1) In general.--There is hereby imposed on highway fuel 
     held on a tax increase date, by any person a tax equal to--
       (A) the tax which would have been imposed on the day before 
     such date on such fuel had

[[Page S1117]]

     the amendments made by this section been in effect at all 
     times before such date, reduced by
       (B) the tax imposed before such date under section 4081 of 
     the Internal Revenue Code of 1986, as in effect on the day 
     before such tax increase date.
       (2) Liability for tax and method of payment.--
       (A) Liability for tax.--A person holding gasoline, diesel 
     fuel, or kerosene on a tax increase date, to which the tax 
     imposed by paragraph (1) applies shall be liable for such 
     tax.
       (B) Method of payment.--The tax imposed by paragraph (1) 
     shall be paid in such manner as the Secretary shall 
     prescribe.
       (C) Time for payment.--The tax imposed by paragraph (1) 
     shall be paid on or before the date which is 3 months after 
     the tax increase date.
       (3) Definitions.--For purposes of this subsection--
       (A) Held by a person.--Highway fuel shall be considered as 
     ``held by a person'' if title thereto has passed to such 
     person (whether or not delivery to the person has been made).
       (B) Highway fuel.--The term ``highway fuel'' means 
     gasoline, diesel fuel, and kerosene.
       (C) Gasoline.--The term ``gasoline'' has the meaning given 
     such term by section 4083(a)(2) of such Code.
       (D) Diesel fuel.--The term ``diesel fuel'' has the meaning 
     given such term by section 4083(a)(3) of such Code.
       (E) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the Secretary's delegate.
       (F) Tax increase date.--The term ``tax increase date'' 
     means July 1, 2004.
       (4) Exception for exempt uses.--The tax imposed by 
     paragraph (1) shall not apply to highway fuel held by any 
     person exclusively for any use to the extent a credit or 
     refund of the tax imposed by section 4081 of such Code, as 
     the case may be, is allowable for such use.
       (5) Exception for fuel held in vehicle tank.--No tax shall 
     be imposed by paragraph (1) on highway fuel held in the tank 
     of a motor vehicle, motorboat, train, or aircraft.
       (6) Other law applicable.--All provisions of law, including 
     penalties, applicable with respect to the taxes imposed by 
     section 4081 of such Code shall, insofar as applicable and 
     not inconsistent with the provisions of this subsection, 
     apply with respect to the floor stock taxes imposed by 
     paragraph (1) to the same extent as if such taxes were 
     imposed by such section 4081.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2004.
                                 ______
                                 
  SA 2436. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1030, after line 21, add the following:

     SEC. 5004. INCREASE IN HIGHWAY FUELS TAX RATE.

       (a) In General.--Section 4081(a)(2)(A) (relating to rates 
     of tax) is amended--
       (1) by striking ``18.3 cents'' in clause (i) and inserting 
     ``22 cents'', and
       (2) by striking ``24.3 cents'' in clause (ii) and inserting 
     ``29.2 cents''.
       (b) Inflation Adjustment.--Section 4081(a) is amended by 
     adding at the end the following new paragraph:
       ``(3) Inflation adjustment of highway motor fuels excise 
     tax rates.--In the case of any calendar year beginning after 
     2004, each of the rates of tax specified in clauses (i) and 
     (ii) of paragraph (2)(A) shall be increased by an amount 
     equal to--
       ``(1) such rate of tax, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, by substituting 
     `calendar year 2003' for `calendar year 1992' in subparagraph 
     (B) thereof.''.
       (c) Secretarial Adjustment.--Notwithstanding any provision 
     of the Internal Revenue Code of 1986 to the contrary, not 
     later than 30 days before any tax increase date (as defined 
     in subsection (d)(3)(F)), the Secretary of the Treasury shall 
     determine and provide for the proper rate, exemption, and 
     credit adjustments necessary to maintain a comparable rate 
     reduction to the rate imposed such date on gasoline, diesel 
     fuel, or kerosene under section 4081 of the Internal Revenue 
     Code of 1986 for any fuel, fuel mixture, or fuel use with 
     respect to which such a reduction is in effect on such date.
       (d) Floor Stocks Tax.--
       (1) In general.--There is hereby imposed on highway fuel 
     held on a tax increase date, by any person a tax equal to--
       (A) the tax which would have been imposed on the day before 
     such date on such fuel had the amendments made by this 
     section been in effect at all times before such date, reduced 
     by
       (B) the tax imposed before such date under section 4081 of 
     the Internal Revenue Code of 1986, as in effect on the day 
     before such tax increase date.
       (2) Liability for tax and method of payment.--
       (A) Liability for tax.--A person holding gasoline, diesel 
     fuel, or kerosene on a tax increase date, to which the tax 
     imposed by paragraph (1) applies shall be liable for such 
     tax.
       (B) Method of payment.--The tax imposed by paragraph (1) 
     shall be paid in such manner as the Secretary shall 
     prescribe.
       (C) Time for payment.--The tax imposed by paragraph (1) 
     shall be paid on or before the date which is 3 months after 
     the tax increase date.
       (3) Definitions.--For purposes of this subsection--
       (A) Held by a person.--Highway fuel shall be considered as 
     ``held by a person'' if title thereto has passed to such 
     person (whether or not delivery to the person has been made).
       (B) Highway fuel.--The term ``highway fuel'' means 
     gasoline, diesel fuel, and kerosene.
       (C) Gasoline.--The term ``gasoline'' has the meaning given 
     such term by section 4083(a)(2) of such Code.
       (D) Diesel fuel.--The term ``diesel fuel'' has the meaning 
     given such term by section 4083(a)(3) of such Code.
       (E) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the Secretary's delegate.
       (F) Tax increase date.--The term ``tax increase date'' 
     means July 1, 2004, and January 1 of each calendar year 
     beginning after 2004.
       (4) Exception for exempt uses.--The tax imposed by 
     paragraph (1) shall not apply to highway fuel held by any 
     person exclusively for any use to the extent a credit or 
     refund of the tax imposed by section 4081 of such Code, as 
     the case may be, is allowable for such use.
       (5) Exception for fuel held in vehicle tank.--No tax shall 
     be imposed by paragraph (1) on highway fuel held in the tank 
     of a motor vehicle, motorboat, train, or aircraft.
       (6) Other law applicable.--All provisions of law, including 
     penalties, applicable with respect to the taxes imposed by 
     section 4081 of such Code shall, insofar as applicable and 
     not inconsistent with the provisions of this subsection, 
     apply with respect to the floor stock taxes imposed by 
     paragraph (1) to the same extent as if such taxes were 
     imposed by such section 4081.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2004.
                                 ______
                                 
  SA 2437. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 346, line 13, strike ``and Washington'' and insert 
     ``Washington, and any State with a seaport affected by 
     increased trade volume due to the North American Free Trade 
     Agreement''.
                                 ______
                                 
  SA 2438. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 288, strike line 16 and all that follows through 
     page 289, line 18.

       On page 293, after the matter following line 22, add the 
     following:
       (d) Traffic Incident Management Program.--
       (1) In general.--Subchapter I of chapter 1 of title 23, 
     United States Code, as amended by this Act, is further 
     amended by adding at the end the following new section:

     ``Sec. 168a. Traffic incident management program

       ``(a) In General.--The Secretary shall establish and 
     implement a traffic incident management program in accordance 
     with this section to assist States and localities in--
       ``(1) regional traffic incident management program 
     planning; and
       ``(2) carrying out projects to mitigate the effects of 
     traffic delays due to accidents, breakdowns, and other non-
     recurring incidents on highways.
       ``(b) Use of Funds.--Funds apportioned to a State under 
     this section may be used for--
       ``(1) regional collaboration and coordination activities 
     that lead to regional traffic incident management policies, 
     programs, plans, procedures, and agreements;
       ``(2) purchase or lease of telecommunications equipment for 
     first responders as part of the development of a regional 
     traffic incident management program;
       ``(3) purchase or lease of equipment to support the 
     clearance of traffic incidents;
       ``(4) payments to contractors for towing and recovery 
     services as part of a regional traffic incident management 
     program;
       ``(5) rental of vehicle storage or staging areas 
     immediately adjacent to roadways as part of a regional 
     traffic incident management program;
       ``(6) traffic service patrols as part of a regional traffic 
     incident management program;
       ``(7) enhanced hazardous materials incident response;
       ``(8) traffic management systems in support of traffic 
     incident management;
       ``(9) traffic incident management training;
       ``(10) crash investigation equipment;

[[Page S1118]]

       ``(11) other activities under a regional traffic incident 
     management plan; and
       ``(12) Statewide incident reporting systems as described in 
     section 169.
       ``(c) Regional Traffic Incident Management Plan.--
       ``(1) In general.--Funds apportioned under this section may 
     not be obligated for an urbanized area with a population 
     greater than 200,000 until a regional traffic incident 
     management plan is developed for such urbanized area.
       ``(2) Plan development.--
       ``(A) Collaboration.--Any urbanized area described in 
     paragraph (1) that receives funds apportioned under this 
     section shall engage in regional collaboration and 
     coordination activities to develop the regional traffic 
     incident management plan required for such area under that 
     paragraph.
       ``(B) Plan elements.--The regional traffic incident 
     management plan for an urbanized area under paragraph (1) 
     shall include--
       ``(i) a strategy, adopted by transportation, public safety, 
     and appropriate private sector participants, for funding, 
     implementing, managing, operating, and evaluating the traffic 
     incident management program initiatives and activities for 
     the urbanized area in manner that ensures regional 
     coordination of such initiatives and activities;
       ``(ii) an estimate of the impact of the plan on traffic 
     delays; and
       ``(iii) a description of the means by which traffic 
     incident management information will be shared among 
     operators, service providers, public safety officials, and 
     the general public.
       ``(C) Availability of funds.--The development of a regional 
     traffic incident management plan shall constitute regional 
     collaboration and coordination activities for purposes of 
     subsection (b)(1) for which funds apportioned under this 
     section may be obligated.
       ``(d) Funding.--
       ``(1) In general.--There is hereby made available from the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     obligation without further appropriation, $500,000,000 for 
     each of fiscal years 2004 through 2009 to carry out this 
     section.
       ``(2) Apportionment among states.--Funds made available 
     under paragraph (1) shall be apportioned among the States 
     according to the ratio by which the aggregate population of 
     each State, or part thereof, in urbanized areas with a 
     population greater than 200,000 bears to the total population 
     of all States, or parts thereof, in such urbanized areas.
       ``(3) Distribution within states.--Funds apportioned to a 
     State under paragraph (2) shall be made available to carry 
     out projects and activities under regional traffic incident 
     managements plans in each urbanized area in the State with a 
     population greater than 200,000 according to the ratio by 
     which the population of such urbanized area, or part thereof, 
     in the State bears to the total population of all such 
     urbanized areas in the State.
       ``(e) Determination of Populations.--For purposes of 
     determining populations of areas under this section, the 
     Secretary shall use information from the most current 
     decennial census, as supplied by the Secretary of 
     Commerce.''.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 23, United States Code, as amended by this Act, is 
     further amended by inserting after the item relating to 
     section 168 the following new item:

``168a. Traffic incident management program.''.

       (3) Equity bonus.--Section 105(a)(2) of title 23, United 
     States Code, as amended by section 1104 of this Act, is 
     further amended--
       (A) in subparagraph (L), by striking ``and'' at the end;
       (B) in subparagraph (M), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(N) the traffic incident management program under section 
     168a.''.
       (4) Offset.--The amount available for the infrastructure 
     performance and maintenance plan required by section 139 of 
     title 23, United States Code, as added by section 1201, is 
     hereby reduced by $3,000,000,000 in order to provide an 
     offset for the costs of the traffic incident management 
     program required by section 168a of title 23, United States 
     Code, as added by paragraph (1).

       On page 295, beginning on line 4, strike ``section 
     1701(c)(1))'' and insert ``section 1701(d)(1))''.
                                 ______
                                 
  SA 2439. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 460, strike lines 18 through 23.
                                 ______
                                 
  SA 2440. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 186, between lines 7 and 8, insert the following:
       (c) Savings Provision.--
       (1) No effect on existing environmental review processes.--
     Nothing in this section--
       (A) affects any environmental review process developed and 
     approved under section 1309 of the Transportation Equity Act 
     for the 21st Century (112 Stat. 232), as in effect on the day 
     before the date of enactment of this Act; or
       (B) prevents the Secretary, with the concurrence of any 
     cooperating agencies, from developing environmental review 
     processes that are consistent with the provisions of that 
     section.
       (2) Eligibility for assistance.--Agencies that participated 
     in an environmental review process under section 1309 of the 
     Transportation Equity Act for the 21st Century that is 
     continued under section 326 of title 23, United States Code, 
     shall be eligible for assistance under subsection (j) of the 
     latter section.
                                 ______
                                 
  SA 2441. Ms. STABENOW (for herself and Mr. Levin) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 611, strike line 21 and all that follows through 
     page 613, line 9, and insert the following:
       ``(B)(i) $101,800,000 of the amounts made available under 
     section 5338(b)(4) shall be allocated for the Bus Transit 
     Equity Subaccount, established under paragraph (7); and
       ``(i) the remaining amounts made available under section 
     5338(b)(4) shall be allocated for capital projects for buses 
     and bus-related equipment and facilities.
       ``(3) Fixed guideway modernization.--The amounts made 
     available for fixed guideway modernization under section 
     5338(b)(2)(K) for fiscal year 2005 and each fiscal year 
     thereafter shall be allocated in accordance with section 
     5337.
       ``(4) Preliminary engineering.--Not more that 8 percent of 
     the allocation described in paragraphs (1)(A) and (2)(A) may 
     be expended on preliminary engineering.
       ``(5) Funding for ferry boats.--Of the amounts described in 
     paragraphs (1)(A) and (2)(A), $10,400,000 shall be available 
     in each of the fiscal years 2004 through 2009 for capital 
     projects in Alaska and Hawaii for new fixed guideway systems 
     and extension projects utilizing ferry boats, ferry boat 
     terminals, or approaches to ferry boat terminals.
       ``(6) Bus and bus facility grants.--
       ``(A) Considerations.--In making grants under paragraphs 
     (1)(C) and (2)(B), the Secretary shall consider the age and 
     condition of buses, bus fleets, related equipment, and bus-
     related facilities.
       ``(B) Projects not in urbanized areas.--Of the amounts made 
     available under paragraphs (1)(C) and (2)(B), not less than 
     5.5 percent shall be available in each fiscal year for 
     projects that are not in urbanized areas.
       ``(C) Intermodal terminals.--Of the amounts made available 
     under paragraphs (1)(C) and (2)(B), not less than $75,000,000 
     shall be available in each fiscal year for intermodal 
     terminal projects, including the intercity bus portion of 
     such projects.
       ``(7) Bus transit equity subaccount.--
       ``(A) Establishment.--There is established a Bus Transit 
     Equity Subaccount within the Mass Transit Account of the 
     Highway Trust Fund.
       ``(B) Eligibility.--Any of the 50 States shall be eligible 
     for funding under the Bus Transit Equity Subaccount if the 
     State--
       ``(i) is otherwise scheduled to receive under sections 
     5307, 5309, 5310, and 5311, for fiscal years 2004 through 
     2009, an amount that is less than 175 percent of the amount 
     the State received under sections 5307, 5309, 5310, and 5311, 
     for fiscal years 1998 through 2003; and
       ``(ii) received less than 1.25 percent of the total amount 
     allocated to the 50 States in fiscal year 2002 for fixed 
     guideways modernization and new starts.
       ``(C) Allocation.--Each eligible State under subparagraph 
     (B) shall be allocated from the Bus Transit Equity 
     Subaccount, for each of the fiscal years 2005 through 2009, 
     an amount that is equal to 20 percent of the difference 
     between the amount the State is otherwise scheduled to 
     receive under sections 5307, 5309, 5310, and 5311, for fiscal 
     years 2004 through 2009, and the amount which is equal to 175 
     percent of the amount the State received under sections 5307, 
     5309, 5310, and 5311 for fiscal years 1998 through 2003.''.
                                 ______
                                 
  SA 2442. Mr. SARBANES (for himself, Ms. Mikulski, and Mr. Allen) 
submitted an amendment intended to be proposed by him to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 1168, insert between lines 16 and 17 the following:

     SEC. 5507A. FEDERAL EMPLOYEE COMMUTER BENEFITS.

       (a) Short Title.--This section may be cited as the 
     ``Federal Employee Commuter Benefits Act of 2004''.

[[Page S1119]]

       (b) Transit Pass Transportation Fringe Benefits.--
       (1) In general.--Effective as of the first day of the next 
     fiscal year beginning after the date of the enactment of this 
     Act, each covered agency shall implement a program under 
     which all qualified Federal employees serving in or under 
     such agency shall be offered transit pass transportation 
     fringe benefits, as described in paragraph (2).
       (2) Benefits described.--The benefits described in this 
     paragraph are, as of any given date, the transit pass 
     transportation fringe benefits which, under section 2 of 
     Executive Order 13150, are then currently required to be 
     offered by Federal agencies in the National Capital Region.
       (3) Definitions.--In this subsection--
       (A) the term ``covered agency'' means any agency, to the 
     extent of its facilities in the National Capital Region;
       (B) the term ``agency'' means any agency (as defined by 
     7905(a)(2) of title 5, United States Code) not otherwise 
     covered by section 2 of Executive Order 13150, the United 
     States Postal Service, the Postal Rate Commission, and the 
     Smithsonian Institution;
       (C) the term ``National Capital Region'' includes the 
     District of Columbia and every county or other geographic 
     area covered by section 2 of Executive Order 13150;
       (D) the term ``Executive Order 13150'' refers to Executive 
     Order 13150 (5 U.S.C. 7905 note);
       (E) the term ``Federal agency'' is used in the same way as 
     under section 2 of Executive Order 13150; and
       (F) any determination as to whether or not one is a 
     ``qualified Federal employee'' shall be made applying the 
     same criteria as would apply under section 2 of Executive 
     Order 13150.
       (4) Rule of construction.--Nothing in this subsection shall 
     be considered to require that a covered agency--
       (A) terminate any program or benefits in existence on the 
     date of the enactment of this Act, or postpone any plans to 
     implement (before the effective date referred to in paragraph 
     (1)) any program or benefits permitted or required under any 
     other provision of law; or
       (B) discontinue (on or after the effective date referred to 
     in paragraph (1)) any program or benefits referred to in 
     subparagraph (A), so long as such program or benefits satisfy 
     the requirements of paragraphs (1) through (3).
       (c) Authority To Use Government Vehicles to Transport 
     Federal Employees Between Their Place of Employment and Mass 
     Transit Facilities.--
       (1) In general.--Section 1344 of title 31, United States 
     Code, is amended--
       (A) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (B) by inserting after subsection (f) the following:
       ``(g)(1) A passenger carrier may be used to transport an 
     officer or employee of a Federal agency between the officer's 
     or employee's place of employment and a mass transit facility 
     (whether or not publicly owned) in accordance with succeeding 
     provisions of this subsection.
       ``(2) Notwithstanding section 1343, a Federal agency that 
     provides transportation services under this subsection 
     (including by passenger carrier) shall absorb the costs of 
     such services using any funds available to such agency, 
     whether by appropriation or otherwise.
       ``(3) In carrying out this subsection, a Federal agency 
     shall--
       ``(A) to the maximum extent practicable, use alternative 
     fuel vehicles to provide transportation services;
       ``(B) to the extent consistent with the purposes of this 
     subsection, provide transportation services in a manner that 
     does not result in additional gross income for Federal income 
     tax purposes; and
       ``(C) coordinate with other Federal agencies to share, and 
     otherwise avoid duplication of, transportation services 
     provided under this subsection.
       ``(4) For purposes of any determination under chapter 81 of 
     title 5, an individual shall not be considered to be in the 
     `performance of duty' by virtue of the fact that such 
     individual is receiving transportation services under this 
     subsection.
       ``(5)(A) The Administrator of General Services, after 
     consultation with the National Capital Planning Commission 
     and other appropriate agencies, shall prescribe any 
     regulations necessary to carry out this subsection.
       ``(B) Transportation services under this subsection shall 
     be subject neither to the last sentence of subsection (d)(3) 
     nor to any regulations under the last sentence of subsection 
     (e)(1).
       ``(6) In this subsection, the term `passenger carrier' 
     means a passenger motor vehicle, aircraft, boat, ship, or 
     other similar means of transportation that is owned or leased 
     by the United States Government or the government of the 
     District of Columbia.''.
       (2) Funds for maintenance, repair, etc.--Subsection (a) of 
     section 1344 of title 31, United States Code, is amended by 
     adding at the end the following:
       ``(3) For purposes of paragraph (1), the transportation of 
     an individual between such individual's place of employment 
     and a mass transit facility pursuant to subsection (g) is 
     transportation for an official purpose.''.
       (3) Coordination.--The authority to provide transportation 
     services under section 1344(g) of title 31, United States 
     Code (as amended by paragraph (1)) shall be in addition to 
     any authority otherwise available to the agency involved.
                                 ______
                                 
  SA 2443. Mr. DODD (for himself and Mr. Lieberman) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 58, strike line 17 and insert the following:
       ``(g) High Population Density Equity Adjustment.--
       ``(1) In general.--In addition to other amounts received 
     under this section and section 1101 of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004, 
     the Secretary shall allocate to each State (other than the 
     District of Columbia) with a population density of greater 
     than 250 individuals per square mile, as determined by the 
     2000 decennial census, a high density State bonus in the 
     proportion that--
       ``(A) the average population density of the State; bears to
       ``(B) the average population density all such States.
       ``(2) Funding.--
       ``(A) In general.--There shall be made available to the 
     Secretary to carry out this subsection, from amounts made 
     available to carry out section 139, $500,000,000 for each of 
     fiscal years 2004 through 2009.
       ``(B) Apportionment.--Funds made available to carry out 
     this subsection shall be apportioned in accordance with 
     section 104(b).
       ``(3) No effect on equity bonus.--The calculation and 
     distribution of funds under other provisions of this section 
     shall not be adjusted as a result of the allocation of funds 
     under this subsection.
       ``(h) Authorization of Appropriations.--There
                                 ______
                                 
  SA 2444. Mr. DODD (for himself and Mr. Lieberman) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of section 105 of title 23, United States Code 
     (as amended by section 1104), add the following:
       ``(_) Special Rules.--For each fiscal year, before making 
     the allocations under subsection (a)(1), the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a combined total of amounts allocated under 
     subsection (a)(1), apportionments for the programs specified 
     in subsection (a)(2), and amounts allocated under this 
     subsection, that is less than 125 percent of the average for 
     fiscal years 1998 through 2003 of the annual apportionments 
     for the State for all programs specified in subsection 
     (b)(2).''.
                                 ______
                                 
  SA 2445. Mr. DODD (for himself and Mr. Lieberman) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 61, strike line 2 and all that follows 
     through the matter following line 8 on page 64, and insert 
     the following:

     SEC. 1201. HIGH TRAFFIC DENSITY EQUITY ADJUSTMENT PROGRAM.

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

     ``Sec. 139. High traffic density equity adjustment program

       ``(a) Establishment of Program.--The Secretary shall 
     establish and implement a high traffic density equity 
     adjustment program in accordance with this section.
       ``(b) Eligible Projects.--
       ``(1) In general.--A State may obligate funds allocated to 
     the State under this section only for projects eligible under 
     the Interstate maintenance program under section 119, the 
     National Highway System program under section 103, the 
     surface transportation program under section 133, the highway 
     safety improvement program under section 148, the highway 
     bridge replacement and rehabilitation program under section 
     144, and the congestion mitigation and air quality 
     improvement program under section 149 that will--
       ``(A) preserve, maintain, or otherwise extend, in a cost-
     effective manner, the useful life of existing highway 
     infrastructure elements; or
       ``(B) provide operational improvements (including traffic 
     management and intelligent transportation system strategies 
     and limited capacity enhancements) at points of recurring 
     highway congestion.
       ``(2) Set-aside.--Notwithstanding any other provision of 
     law, of the amounts made available under section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, $439,000,000 shall be 
     available for obligation to carry out this section without 
     further appropriation.
       ``(3) High traffic density equity adjustment program.--

[[Page S1120]]

       ``(A) In general.--The Secretary shall allocate the amounts 
     made available under paragraph (2) in the ratio that--
       ``(i) the ratio of annual vehicle miles traveled to lane 
     miles of each State greater than the ratio of total vehicle 
     miles traveled to total lane miles of all States; bears to
       ``(ii) the ratio of total vehicle miles traveled to total 
     lane miles of all States.
       ``(B) Determination of annual vehicle miles travel.--In 
     determining annual vehicle miles per lane mile for purposes 
     of this paragraph, the Secretary shall use the latest 
     available annual estimates prepared by the Secretary of 
     Transportation.
       ``(c) Period of Availability.--
       ``(1) Obligation within 180 days.--
       ``(A) In general.--Funds allocated to a State under this 
     section shall be obligated by the State not later than 180 
     days after the date of apportionment.
       ``(B) Unobligated funds.--Any amounts that remain 
     unobligated at the end of that period shall be allocated in 
     accordance with subsection (d).
       ``(2) Obligation by end of fiscal year.--
       ``(A) In general.--All funds allocated or reallocated under 
     this section shall remain available for obligation until the 
     last day of the fiscal year for which the funds are 
     apportioned.
       ``(B) Unobligated funds.--Any amounts allocated that remain 
     unobligated at the end of the fiscal year shall lapse.
       ``(d) Redistribution of Allocated Funds and Obligation 
     Authority.--
       ``(1) In general.--On the date that is 180 days after the 
     date of allocation, or as soon thereafter as practicable, for 
     each fiscal year, the Secretary shall -
       ``(A) withdraw--
       ``(i) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(ii) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(B) reallocate the funds and redistribute the obligation 
     authority to States that--
       ``(i) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       (ii) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(2) Equity bonus.--The calculation and distribution of 
     funds under section 105 shall not be adjusted as a result of 
     the allocation of funds under this subsection.
       ``(e) Federal Share Payable.--The Federal share payable for 
     a project funded under this section shall be determined in 
     accordance with section 120.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     1 of title 23, United States Code, is amended by adding after 
     the item relating to section 138 the following:

``139. High traffic density equity adjustment program.''.
                                 ______
                                 
  SA 2446. Mr. STEVENS (for himself and Mr. Inouye) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning with line 21 on page 71, strike through the 
     matter between lines 6 and 7 on page 80 and insert the 
     following:

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

       (a) Freight Transportation Gateways.--Chapter 3 of title 
     23, United States Code, is amended by adding at the end the 
     following:

     ``Sec. 325. Freight transportation gateways

       ``(a) In General.--
       ``(1) Establishment.--The Secretary shall establish a 
     freight transportation gateways program to improve 
     productivity, security, and safety of freight transportation 
     gateways, while mitigating congestion and community impacts 
     in the area of the gateways.
       ``(2) Purposes.--The purposes of the freight transportation 
     gateways program shall be--
       ``(A) to facilitate and support multimodal freight 
     transportation initiatives at the State and local levels in 
     order to improve freight transportation gateways and mitigate 
     the impact of congestion on the environment in the area, of 
     the gateways;
       ``(B) to provide capital funding to address infrastructure 
     and freight operational needs at freight transportation 
     gateways;
       ``(C) to encourage adoption of new financing strategies to 
     leverage State, local, and private investment in freight 
     transportation gateways;
       ``(D) to facilitate access to intermodal freight transfer 
     facilities; and
       ``(E) to increase economic efficiency by facilitating the 
     movement of goods.
       ``(b) State Responsibilities.--
       ``(1) Project Development Process.--Each State, in 
     coordination with metropolitan planning organizations, shall 
     ensure that intermodal freight transportation, trade 
     facilitation, and economic development needs are adequately 
     considered and fully integrated into the project development 
     process, including transportation planning through final 
     design and construction of freight-related transportation 
     projects.
       ``(2) Freight Transportation Coordinator.--
       ``(A) In General.--Each State shall designate a freight 
     transportation coordinator and, where appropriate, a maritime 
     transportation system coordinator.
       ``(B) Duties.--Each coordinator shall--
       ``(i) foster public and private sector collaboration needed 
     to implement complex solutions to freight transportation and 
     the facilitation of transportation throughout the maritime 
     transportation system, including--
       ``(I) coordination of metropolitan and statewide 
     transportation activities with trade and economics interests;
       ``(II) coordination with other States, agencies, and 
     organizations to find regional solutions to freight 
     transportation problems; and
       ``(III) coordination with local officials of the Department 
     of Defense and the Department of Homeland Security, and with 
     other organizations, to develop regional solutions to 
     military and homeland security transportation needs; and
       ``(ii) promote programs that build professional capacity to 
     better plan, coordinate, integrate, and understand freight 
     transportation needs for the State.
       ``(c) MARAD Responsibilities.--
       ``(1) Purposes.--The purposes of the maritime 
     transportation system enhancements implemented under this 
     section are--
       ``(A) to develop a clearly defined freight program to 
     implement a comprehensive program of intermodal solutions to 
     freight needs;
       ``(B) to promote efficiencies in the transportation of 
     intermodal freight by increasing the awareness of the 
     economic importance of freight;
       ``(C) to create a national intermodal planning and 
     development initiative to provide for strategic investments 
     that need to be made for transportation projects of national 
     significance;
       ``(D) to create a gateways of national significance program 
     by restructuring the TEA-21 corridors and borders program to 
     distribute funds where cohesive regional planning groups are 
     already in place with plans to address infrastructure 
     transportation infrastructure choke points;
       ``(E) to improve productivity of freight terminals by 
     connecting those terminals to the nation's transportation 
     infrastructure and dedicating resources to the efficiencies 
     of these connectors;
       ``(F) to enhance productivity and efficiency of the United 
     States economy through infrastructure improvements that 
     facilitate just-in-time delivery and eliminate surface 
     transportation congestion;
       ``(G) to improve air quality and transportation safety; and
       ``(H) to enhance freight movement security.
       ``(2) Duties.--The Maritime Administration shall prepare 
     and maintain a national maritime transportation system and 
     shall--
       ``(1) recognize designated State marine transportation 
     system coordinators to foster public and private 
     collaboration and coordinate regional solutions to freight 
     transportation and gateway issues, and require States with 
     port facilities, marine terminals, and viable commercial 
     inland waterway systems to ensure that the coordinators 
     duties include the consideration of comprehensive intermodal 
     transportation needs in the planning process and coordinate 
     with adjacent states to ensure intermodal solutions that 
     maximize water transportation options in the movement of 
     freight;
       ``(2) review and comment on each State marine 
     transportation system submitted to the Secretary under this 
     section;
       ``(3) compile all State plans and incorporate them into the 
     national marine transportation system plan;
       ``(4) evaluate, every 2 years, marine transportation system 
     enhancements to address freight movement congestion, 
     security, and safety through the increased use of water 
     transportation alternatives;
       ``(5) prioritize short sea shipping projects and programs 
     in accordance with a national evaluation study and analysis 
     of infrastructure needs and forecasted increases in trade 
     demand;
       ``(6) integrate short sea shipping services with existing 
     surface transportation projects;
       ``(7) foster the utilization of container-on-barge as a 
     means of alleviating congestion in and around congested 
     metropolitan areas;
       ``(8) foster brownfield development for the expansion of 
     marine transportation system capacity to augment the limited 
     amount of sustainable land available for competing 
     transportation related uses;
       ``(9) support improvements to landside infrastructure that 
     connects highways and railways to the marine transportation 
     system;
       ``(10) promote accident prevention and protection of the 
     environment as top marine transportation system priorities;
       ``(11) develop methods of streamlining project-planning 
     processes to eliminate delays in marine transportation system 
     improvements;
       ``(12) develop a coherent environmental regulatory process 
     to streamline permitting; and
       ``(13) promote the increased use of on-dock and near-dock 
     rail usage.
       ``(d) Innovative Finance Strategies.--
       ``(1) In general.--States and localities are encouraged to 
     adopt innovative financing strategies for freight 
     transportation gateway improvements, including--

[[Page S1121]]

       ``(A) new user fees;
       ``(B) modifications to existing user fees, including trade 
     facilitation charges;
       ``(C) revenue options that incorporate private sector 
     investment; and
       ``(D) a blending of Federal-aid and innovative finance 
     programs.
       ``(2) Technical assistance.--The Secretary shall provide 
     technical assistance to States and localities with respect to 
     the strategies.
       ``(e) Intermodal Freight Transportation Projects.--
       ``(1) Use of surface transportation program funds.--A State 
     may obligate funds apportioned to the State under section 
     104(b)(3) for publicly-owned intermodal freight 
     transportation projects that provide community and highway 
     benefits by addressing economic, congestion, system 
     reliability, security, safety, or environmental issues 
     associated with freight transportation gateways.
       ``(2) Eligible projects.--A project eligible for funding 
     under this section--
       ``(A) may include publicly-owned intermodal freight 
     transfer facilities, access to the facilities, and 
     operational improvements for the facilities (including 
     capital investment for intelligent transportation systems), 
     except that projects located within the boundaries of port 
     terminals shall only include the transportation 
     infrastructure modifications necessary to facilitate direct 
     intermodal interchange, transfer, and access into and out of 
     the port; and
       ``(B) may involve the combining of private andd public 
     funds.''.
       (b) Eligibility for Surface Transportation Program Funds.--
     Section 133(b) of title 23, United States Code, is amended by 
     inserting after paragraph (11) the following:
       ``(12) Intermodal freight transportation projects in 
     accordance with section 325(e)(2).'.
       (c) Freight Intermodal Connections to NHS.--Section 103(b) 
     of title 23, United States Code, is amended by adding at the 
     end the following:
       ``(7) Freight intermodal connections to the nhs.--
       ``(A) Funding set-aside.--Of the funds apportioned to a 
     State for each fiscal year under section 104(b)(1), an amount 
     determined in accordance with subparagraph (B) shall only be 
     available to the State to be obligated for projects on--
       ``(1) National Highway System routes connecting to 
     intermodal freight terminals identified according to criteria 
     specified in the report to Congress entitled `Pulling 
     Together: The National Highway System and its Connections to 
     Major Intermodal Terminals' dated May 24, 1996, referred to 
     in paragraph (1), and any modifications to the connections 
     that are consistent with paragraph (4);
       ``(ii) strategic. highway network connectors to strategic 
     military deployment ports;
       ``(iii) projects to eliminate railroad crossings or make 
     railroad crossing improvements; and
       ``(iv) any intermodal project in the State of Alaska, or 
     Hawaii that, the State determines to be vital to State 
     transportation needs.
       ``(B) Determination of amount.--The amount of funds for 
     each State for a fiscal year that shall be set aside under 
     subparagraph (A) shall be equal to the greater of--
       ``(i) the product obtained by multiplying--
       ``(I) the total amount of funds apportioned to the State 
     under section 104(b)(1); by
       ``(II) the percentage of miles that routes specified in 
     subparagraph (A) constitute of the total miles on the 
     National Highway System in the State; or
       ``(ii) 2 percent of the annual apportionment to the State 
     of funds under 104(b)(1).
       ``(C) Exemption from set-aside.--For any fiscal year, a 
     State may obligate the funds otherwise set aside by this 
     paragraph for any project that is eligible under paragraph 
     (6) and is located in the State on a segment of the National 
     Highway System specified in paragraph (2), if the State 
     certifies and the Secretary concurs that--
       ``(1) the designated National Highway System intermodal 
     connectors described in subparagraph (A) are in good 
     condition and provide an adequate level of service for 
     military vehicle and civilian commercial vehicle use; and
       ``(ii) significant needs on the designated National Highway 
     System intermodal connectors are being met or do not exist.
        ``(D) Flexibility.---Port projects eligible for funding 
     under this section may be transferred and administered by the 
     Administrator of the Maritime Administration under the terms 
     and conditions provided in section 626 of the Consolidated 
     Appropriations Resolution, 2003.''.
       (d) Federal Share Payable.--Section 120 of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(m) Increased Federal Share for Connectors.--In the case 
     of a project to support a National Highway System intermodal 
     freight connection or strategic highway network connector to 
     a strategic military deployment port described in section 
     103(b)(7), the Federal share of the total cost of the project 
     shall be 90 percent.''.
       (e) Length Limitations.--Section 31111(e) of title 49, 
     United States Code, is amended--
       (1) by striking ``The'' and inserting the following:
       ``(1) In general.--The''; and
       (2) by adding at the end the following:
       ``(2) Length limitations.--In the interests of economic 
     competitiveness, security, and intermodal connectivity, not 
     later than 3 years after the date of enactment of this 
     paragraph, States shall update the list of Federal-aid system 
     highways to include--
       ``(A) strategic highway network connectors to strategic 
     military deployment ports; and
       ``(B) National Highway System intermodal freight 
     connections serving military and commercial truck traffic 
     going to major intermodal terminals as described in section 
     103(b)(7)(A)(i).''.
       (f) Conforming Amendment.--The analysis of chapter 3 of 
     title 23, United States Code, is amended by adding at the end 
     the following:
``325. Freight transportation gateways.''.
                                 ______
                                 
  SA 2447. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 420, line 23, strike ``enhanced'' and insert 
     ``integrated, interoperable emergency''.
                                 ______
                                 
  SA 2448. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 120, line 18, after ``elements'' insert ``, 
     including integrated, interoperable emergency 
     communications,''.
                                 ______
                                 
  SA 2449. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 118, line 3, before ``equipment'' insert 
     ``intergrated, interoperable emergency communications,''.
                                 ______
                                 
  SA 2450. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 404, line 7, before ``communication'' insert 
     ``integrated, interoperable emergency''.
                                 ______
                                 
  SA 2451. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 260, after line 9, insert the following:
       ``(7) if the project or program involves the purchase of 
     integrated, interoperable emergency communications 
     equipment.''.
                                 ______
                                 
  SA 2452. Mr. CONRAD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 923, strike lines 8 through 10 and insert the 
     following:
       (a) Funding.--Section 125(c)(1) of title 23, United States 
     Code, is amended by striking ``$100,000,000'' and inserting 
     ``$300,000,000''.
       (b) Roads in Closed Basins.--Section 125 of title 23, 
     United States Code, is amended by adding at the end the 
     following:
       ``(g) Roads in Closed Basins.--
       ``(1) Definition of construction.--In this subsection, the 
     term `construction' includes--
       ``(A) monitoring, studies, evaluations, design, or 
     preliminary engineering relating to construction; and
       ``(B) monitoring and evaluations relating to proposed 
     construction.
       ``(2) Funding.--Subject to paragraph (3), the Secretary 
     shall use amounts made available to carry out this section, 
     through advancement or reimbursement, without further 
     emergency declaration, for construction--
       ``(A) necessary for the continuation of roadway services 
     and the impoundment of water, as the Secretary determines to 
     be appropriate, in accordance with--
       ``(i) options and needs identified in the report of the 
     Devils Lake Surface Transportation Task Force, Federal 
     Highway Administration, entitled `Roadways Serving as Water 
     Barriers' and dated May 4, 2000 (referred to in this 
     subsection as the `report'); and

[[Page S1122]]

       ``(ii) any needs identified after publication of the 
     report; or
       ``(B) for a grade raise to permanently restore a roadway 
     identified in the report the use of which is lost or reduced, 
     or could be lost or reduced, as a result of an actual or 
     predicted water level that is within 3 feet of causing 
     inundation of the roadway.
       ``(3) Requirement.--To be eligible for funding under 
     paragraph (1), construction or a grade raise shall be carried 
     out in an area that has been the subject of an emergency 
     declaration issued during or after 1993.''.
                                 ______
                                 
  SA 2453. Mr. LEVIN submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1298, after line 24, add the following:

               PART VI--TAX SHELTER AND TAX HAVEN REFORMS

     SEC. 5671. PENALTY FOR PROMOTING ABUSIVE TAX SHELTERS.

       (a) Penalty for Promoting Abusive Tax Shelters.--Section 
     6700 (relating to promoting abusive tax shelters, etc.) is 
     amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (d) and (e), respectively,
       (2) by striking ``a penalty'' and all that follows through 
     the period in the first sentence of subsection (a) and 
     inserting ``a penalty determined under subsection (b)'', and
       (3) by inserting after subsection (a) the following new 
     subsections:
       ``(b) Amount of Penalty; Calculation of Penalty; Liability 
     for Penalty.--
       ``(1) Amount of penalty.--The amount of the penalty imposed 
     by subsection (a) shall not exceed the greater of--
       ``(A) 150 percent of the gross income derived (or to be 
     derived) from such activity by the person or persons subject 
     to such penalty, and
       ``(B) if readily subject to calculation, the total amount 
     of underpayment by the taxpayer (including penalties, 
     interest, and taxes) in connection with such activity.
       ``(2) Calculation of penalty.--The penalty amount 
     determined under paragraph (1) shall be calculated with 
     respect to each instance of an activity described in 
     subsection (a), each instance in which income was derived by 
     the person or persons subject to such penalty, and each 
     person who participated in such an activity.
       ``(3) Liability for penalty.--If more than 1 person is 
     liable under subsection (a) with respect to such activity, 
     all such persons shall be jointly and severally liable for 
     the penalty under such subsection.
       ``(c) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to activities after the date of the enactment of 
     this Act.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5626 of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5672. PENALTY FOR AIDING AND ABETTING THE UNDERSTATEMENT 
                   OF TAX LIABILITY.

       (a) In General.--Section 6701(a) (relating to imposition of 
     penalty) is amended--
       (1) by inserting ``the tax liability or'' after ``respect 
     to,'' in paragraph (1),
       (2) by inserting ``aid, assistance, procurement, or advice 
     with respect to such'' before ``portion'' both places it 
     appears in paragraphs (2) and (3), and
       (3) by inserting ``instance of aid, assistance, 
     procurement, or advice or each such'' before ``document'' in 
     the matter following paragraph (3).
       (b) Amount of Penalty.--Subsection (b) of section 6701 
     (relating to penalties for aiding and abetting understatement 
     of tax liability) is amended to read as follows:
       ``(b) Amount of Penalty; Calculation of Penalty; Liability 
     for Penalty.--
       ``(1) Amount of penalty.--The amount of the penalty imposed 
     by subsection (a) shall not exceed the greater of--
       ``(i) 150 percent of the gross income derived (or to be 
     derived) from such aid, assistance, procurement, or advice 
     provided by the person or persons subject to such penalty, 
     and
       ``(ii) if readily subject to calculation, the total amount 
     of underpayment by the taxpayer (including penalties, 
     interest, and taxes) in connection with the understatement of 
     the liability for tax.
       ``(2) Calculation of penalty.--The penalty amount 
     determined under paragraph (1) shall be calculated with 
     respect to each instance of aid, assistance, procurement, or 
     advice described in subsection (a), each instance in which 
     income was derived by the person or persons subject to such 
     penalty, and each person who made such an understatement of 
     the liability for tax.
       ``(3) Liability for penalty.--If more than 1 person is 
     liable under subsection (a) with respect to providing such 
     aid, assistance, procurement, or advice, all such persons 
     shall be jointly and severally liable for the penalty under 
     such subsection.''.
       (c) Penalty Not Deductible.--Section 6701 is amended by 
     adding at the end the following new subsection:
       ``(g) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to activities after the date of the enactment of 
     this Act.

     SEC. 5673. PENALTY FOR FAILURE TO REGISTER TAX SHELTER.

       (a) In General.--Section 6707 (relating to failure to 
     furnish information regarding tax shelters) is amended to 
     read as follows:

     ``SEC. 6707. FAILURE TO FURNISH INFORMATION ON POTENTIALLY 
                   ABUSIVE TAX SHELTER OR LISTED TRANSACTION.

       ``(a) In General.--If a person who is required to file a 
     return under section 6111 with respect to any potentially 
     abusive tax shelter--
       ``(1) fails to file such return on or before the date 
     prescribed therefor, or
       ``(2) files false or incomplete information with the 
     Secretary with respect to such shelter,

     such person shall pay a penalty with respect to such return 
     in the amount determined under subsection (b).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     penalty imposed under subsection (a) with respect to any 
     failure shall be not less than $50,000 and not more than 
     $100,000.
       ``(2) Listed transactions.--The penalty imposed under 
     subsection (a) with respect to any listed transaction shall 
     be an amount equal to the greater of--
       ``(A) $200,000, or
       ``(B) 100 percent of the gross income derived by such 
     person for providing aid, assistance, procurement, advice, or 
     other services with respect to the listed transaction before 
     the date the return including the transaction is filed under 
     section 6111.

     Subparagraph (B) shall be applied by substituting `150 
     percent' for `100 percent' in the case of an intentional 
     failure or act described in subsection (a).
       ``(c) Certain Rules To Apply.--The provisions of section 
     6707A(d) allowing the Commissioner of Internal Revenue to 
     rescind a penalty under certain circumstances shall apply to 
     any penalty imposed under this section.
       ``(d) Potentially Abusive Tax Shelters and Listed 
     Transactions.--The terms `potentially abusive tax shelter' 
     and `listed transaction' have the respective meanings given 
     to such terms by section 6707A(c).
       ``(e) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (b) Clerical Amendment.--The item relating to section 6707 
     in the table of sections for part I of subchapter B of 
     chapter 68 is amended by striking ``regarding tax shelters'' 
     and inserting ``on potentially abusive tax shelter or listed 
     transaction''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns the due date for which is after the 
     date of the enactment of this Act.
       (d) Prior Section To Have No Effect.--Notwithstanding 
     section 5618(c) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5674. PENALTY FOR FAILING TO MAINTAIN CLIENT LIST.

       (a) In General.--Subsection (a) of section 6708 (relating 
     to failure to maintain lists of investors in potentially 
     abusive tax shelters) is amended to read as follows:
       ``(a) Imposition of Penalty.--
       ``(1) In general.--If any person who is required to 
     maintain a list under section 6112(a) fails to make such list 
     available upon written request to the Secretary in accordance 
     with section 6112(b)(1)(A) within 20 business days after the 
     date of the Secretary's request, such person shall pay a 
     penalty of $10,000 for each day of such failure after such 
     20th day. If such person makes available an incomplete list 
     upon such request, such person shall pay a penalty of $100 
     per each omitted name for each day of such omission after 
     such 20th day.
       ``(2) Good cause exception.--No penalty shall be imposed by 
     paragraph (1) with respect to the failure on any day if, in 
     the judgment of the Secretary, such failure is due to good 
     cause.''.
       (b) Penalty Not Deductible.--Section 6708 is amended by 
     adding at the end the following new subsection:
       ``(c) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to requests made by the Secretary of the Treasury 
     after the date of the enactment of this Act.
       (d) Prior Section To Have No Effect.--Notwithstanding 
     section 5619(b) of this Act,

[[Page S1123]]

     such section, and the amendments made by such section, shall 
     not take effect.

     SEC. 5675. PENALTY FOR FAILING TO DISCLOSE POTENTIALLY 
                   ABUSIVE TAX SHELTER.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by inserting 
     after section 6707 the following new section:

     ``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE POTENTIALLY 
                   ABUSIVE TAX SHELTER INFORMATION WITH RETURN OR 
                   STATEMENT.

       ``(a) Imposition of Penalty.--Any person who fails to 
     include on any return or statement any information with 
     respect to a potentially abusive tax shelter which is 
     required under section 6011 to be included with such return 
     or statement shall pay a penalty in the amount determined 
     under subsection (b).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the amount of the penalty under subsection (a) shall be 
     $50,000.
       ``(2) Listed transaction.--Except as provided in paragraph 
     3, the amount of the penalty under subsection (a) with 
     respect to a listed transaction shall be $100,000.
       ``(3) Increase in penalty for intentional nondisclosure.--
     In the case of an intentional failure by any person under 
     subsection (a), the penalty under paragraph (1) shall be 
     $100,000 and the penalty under paragraph (2) shall be 
     $200,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Potentially abusive tax shelter.--The term 
     `potentially abusive tax shelter' means any transaction with 
     respect to which information is required to be included with 
     a return or statement, because the Secretary has determined 
     by regulation or otherwise that such transaction has a 
     potential for tax avoidance or evasion.
       ``(2) Listed transaction.--Except as provided in 
     regulations, the term `listed transaction' means a 
     potentially abusive tax shelter which is the same as, or 
     substantially similar to, a transaction specifically 
     identified by the Secretary as a tax avoidance transaction 
     for purposes of section 6011.
       ``(d) Authority To Rescind Penalty.--
       ``(1) In general.--The Commissioner of Internal Revenue may 
     rescind all or any portion of a penalty imposed by this 
     section with respect to any violation if--
       ``(A) the violation is with respect to a potentially 
     abusive tax shelter other than a listed transaction,
       ``(B) the person on whom the penalty is imposed has a 
     history of complying with the requirements of this title,
       ``(C) it is shown that the violation is due to an 
     unintentional mistake of fact,
       ``(D) imposing the penalty would be against equity and good 
     conscience, and
       ``(E) rescinding the penalty would promote compliance with 
     the requirements of this title and effective tax 
     administration.
       ``(2) Discretion.--The exercise of authority under 
     paragraph (1) shall be at the sole discretion of the 
     Commissioner and may be delegated only to the head of the 
     Office of Tax Shelter Analysis. The Commissioner, in the 
     Commissioner's sole discretion, may establish a procedure to 
     determine if a penalty should be referred to the Commissioner 
     or the head of such Office for a determination under 
     paragraph (1).
       ``(3) No appeal.--Notwithstanding any other provision of 
     law, any determination under this subsection may not be 
     reviewed in any administrative or judicial proceeding.
       ``(4) Records.--If a penalty is rescinded under paragraph 
     (1), the Commissioner shall place in the file in the Office 
     of the Commissioner the opinion of the Commissioner or the 
     head of the Office of Tax Shelter Analysis with respect to 
     the determination, including--
       ``(A) the facts and circumstances of the transaction,
       ``(B) the reasons for the rescission, and
       ``(C) the amount of the penalty rescinded.
     A copy of such opinion shall be provided upon written request 
     to the Committee on Ways and Means of the House of 
     Representatives, the Committee on Finance of the Senate, the 
     Joint Committee on Taxation, or the General Accounting 
     Office.
       ``(5) Report.--The Commissioner shall each year report to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate--
       ``(A) a summary of the total number and aggregate amount of 
     penalties imposed, and rescinded, under this section, and
       ``(B) a description of each penalty rescinded under this 
     subsection and the reasons therefor.
       ``(e) Penalty Reported to SEC.--In the case of a person--
       ``(1) which is required to file periodic reports under 
     section 13 or 15(d) of the Securities Exchange Act of 1934 or 
     is required to be consolidated with another person for 
     purposes of such reports, and
       ``(2) which--
       ``(A) is required to pay a penalty under this section with 
     respect to a listed transaction,
       ``(B) is required to pay a penalty under section 6662A with 
     respect to any potentially abusive tax shelter at a rate 
     prescribed under section 6662A(c), or
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction,

     the requirement to pay such penalty shall be disclosed in 
     such reports filed by such person for such periods as the 
     Secretary shall specify. Failure to make a disclosure in 
     accordance with the preceding sentence shall be treated as a 
     failure to which the penalty under subsection (b)(2) applies.
       ``(f) Penalty in Addition to Other Penalties.--The penalty 
     imposed by this section shall be in addition to any other 
     penalty provided by law.
       ``(g) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (b) Conforming Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by inserting after 
     the item relating to section 6707 the following:

``Sec. 6707A. Penalty for failure to include potentially abusive tax 
              shelter information with return or statement.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to returns and statements the due date for which 
     is after the date of the enactment of this Act.
       (d) Prior Section To Have No Effect.--Notwithstanding 
     section 5612(c) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5676. IMPROVED DISCLOSURE OF POTENTIALLY ABUSIVE TAX 
                   SHELTERS.

       (a) In General.--Section 6111 (relating to registration of 
     tax shelters) is amended to read as follows:

     ``SEC. 6111. DISCLOSURE OF POTENTIALLY ABUSIVE TAX SHELTERS.

       ``(a) In General.--Each material advisor with respect to 
     any potentially abusive tax shelter shall make a return (in 
     such form as the Secretary may prescribe) setting forth--
       ``(1) information identifying and describing such shelter,
       ``(2) information describing any potential tax benefits 
     expected to result from the shelter, and
       ``(3) such other information as the Secretary may 
     prescribe.

     Such return shall be filed not later than the date which is 
     30 days before the date on which the first sale of such 
     shelter occurs or on any other date specified by the 
     Secretary.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Material advisor.--
       ``(A) In general.--The term `material advisor' means any 
     person--
       ``(i) who provides any material aid, assistance, or advice 
     with respect to designing, organizing, managing, promoting, 
     selling, implementing, or carrying out any potentially 
     abusive tax shelter, and
       ``(ii) who directly or indirectly derives gross income in 
     excess of the threshold amount for such aid, assistance, or 
     advice.
       ``(B) Threshold amount.--For purposes of subparagraph (A), 
     the threshold amount is--
       ``(i) $50,000 in the case of a potentially abusive tax 
     shelter substantially all of the tax benefits from which are 
     provided to natural persons, and
       ``(ii) $100,000 in any other case.
       ``(2) Potentially abusive tax shelter.--The term 
     `potentially abusive tax shelter' has the meaning given to 
     such term by section 6707A(c).
       ``(c) Regulations.--The Secretary may prescribe regulations 
     which provide--
       ``(1) that only 1 person shall be required to meet the 
     requirements of subsection (a) in cases in which 2 or more 
     persons would otherwise be required to meet such 
     requirements,
       ``(2) exemptions from the requirements of this section, and
       ``(3) such rules as may be necessary or appropriate to 
     carry out the purposes of this section.''.
       (b) Conforming Amendments.--
       (1) The item relating to section 6111 in the table of 
     sections for subchapter B of chapter 61 is amended to read as 
     follows:

``Sec. 6111. Disclosure of potentially abusive tax shelters.''.

       (2)(A) So much of section 6112 as precedes subsection (c) 
     thereof is amended to read as follows:

     ``SEC. 6112. MATERIAL ADVISORS OF POTENTIALLY ABUSIVE TAX 
                   SHELTERS MUST KEEP CLIENT LISTS.

       ``(a) In General.--Each material advisor (as defined in 
     section 6111) with respect to any potentially abusive tax 
     shelter (as defined in section 6707A(c)) shall maintain, in 
     such manner as the Secretary may by regulations prescribe, a 
     list--
       ``(1) identifying each person with respect to whom such 
     advisor acted as such a material advisor with respect to such 
     shelter, and
       ``(2) containing such other information as the Secretary 
     may by regulations require.

     This section shall apply without regard to whether a material 
     advisor is required to file a return under section 6111 with 
     respect to such transaction.''.
       (B) Section 6112 is amended by redesignating subsection (c) 
     as subsection (b).
       (C) Section 6112(b), as redesignated by subparagraph (B), 
     is amended--
       (i) by inserting ``written'' before ``request'' in 
     paragraph (1)(A), and
       (ii) by striking ``shall prescribe'' in paragraph (2) and 
     inserting ``may prescribe''.
       (D) The item relating to section 6112 in the table of 
     sections for subchapter B of chapter 61 is amended to read as 
     follows:


[[Page S1124]]


``Sec. 6112. Material advisors of potentially abusive tax shelters must 
              keep client lists.''.

       (3)(A) The heading for section 6708 is amended to read as 
     follows:

     ``SEC. 6708. FAILURE TO MAINTAIN CLIENT LISTS WITH RESPECT TO 
                   POTENTIALLY ABUSIVE TAX SHELTERS.''.

       (B) The item relating to section 6708 in the table of 
     sections for part I of subchapter B of chapter 68 is amended 
     to read as follows:

``Sec. 6708. Failure to maintain client lists with respect to 
              potentially abusive tax shelters.''.

       (c) Required Disclosure Not Subject to Claim of 
     Confidentiality.--Section 6112(b)(1), as redesignated by 
     subsection (b)(2)(B), is amended by adding at the end the 
     following new flush sentence:

     ``For purposes of this section, the identity of any person on 
     such list shall not be privileged.''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to transactions 
     with respect to which material aid, assistance, or advice 
     referred to in section 6111(b)(1)(A)(i) of the Internal 
     Revenue Code of 1986 (as added by this section) is provided 
     after the date of the enactment of this Act.
       (2) No claim of confidentiality against disclosure.--The 
     amendment made by subsection (c) shall take effect as if 
     included in the amendments made by section 142 of the Deficit 
     Reduction Act of 1984.
       (e) Prior Section To Have No Effect.--Notwithstanding 
     section 5617(d) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5677. EXTENSION OF STATUTE OF LIMITATIONS FOR 
                   UNDISCLOSED TAX SHELTER.

       (a) In General.--Section 6501(c) (relating to exceptions) 
     is amended by adding at the end the following new paragraph:
       ``(10) Potentially abusive tax shelters.--If a taxpayer 
     fails to include on any return or statement for any taxable 
     year any information with respect to a potentially abusive 
     tax shelter (as defined in section 6707A(c)) which is 
     required under section 6011 to be included with such return 
     or statement, the time for assessment of any tax imposed by 
     this title with respect to such transaction shall not expire 
     before the date which is 2 years after the earlier of--
       ``(A) the date on which the Secretary is furnished the 
     information so required; or
       ``(B) the date that a material advisor (as defined in 
     section 6111) meets the requirements of section 6112 with 
     respect to a request by the Secretary under section 6112(b) 
     relating to such transaction with respect to such 
     taxpayer.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years with respect to which the period 
     for assessing a deficiency did not expire before the date of 
     the enactment of this Act.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5626(b) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5678. PENALTY FOR FAILING TO REPORT INTERESTS IN FOREIGN 
                   FINANCIAL ACCOUNTS.

       (a) In General.--Section 5321(a)(5) of title 31, United 
     States Code, is amended to read as follows:
       ``(5) Foreign financial agency transaction violation.--
       ``(A) Penalty authorized.--The Secretary of the Treasury 
     may impose a civil money penalty on any person who violates, 
     or causes any violation of, any provision of section 5314.
       ``(B) Amount of penalty.--
       ``(i) In general.--Except as provided in subparagraph (C), 
     the amount of any civil penalty imposed under subparagraph 
     (A) shall not exceed $10,000.
       ``(ii) Reasonable cause exception.--No penalty shall be 
     imposed under subparagraph (A) with respect to any violation 
     if--

       ``(I) such violation was due to reasonable cause, and
       ``(II) the amount of the transaction or the balance in the 
     account at the time of the transaction was properly reported.

       ``(C) Willful violations.--In the case of any person 
     willfully violating, or willfully causing any violation of, 
     any provision of section 5314, the amount of the civil 
     penalty imposed under subparagraph (A) shall be--
       ``(i) not less than $5,000,
       ``(ii) not more than 50 percent of the amount determined 
     under subparagraph (D), and
       ``(iii) subparagraph (B)(ii) shall not apply.
       ``(D) Amount.--The amount determined under this 
     subparagraph is--
       ``(i) in the case of a violation involving a transaction, 
     the amount of the transaction, or
       ``(ii) in the case of a violation involving a failure to 
     report the existence of an account or any identifying 
     information required to be provided with respect to an 
     account, the balance in the account at the time of the 
     violation.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to violations occurring after the date of the 
     enactment of this Act.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5622(b) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5679. CENSURE, CIVIL FINES, AND TAX OPINION STANDARDS 
                   FOR TAX PRACTITIONERS.

       (a) Censure; Imposition of Monetary Penalty.--
       (1) In general.--Section 330(b) of title 31, United States 
     Code, is amended--
       (A) by inserting ``, or censure,'' after ``Department'', 
     and
       (B) by adding at the end the following new flush sentence:

     ``The Secretary may impose a monetary penalty on any 
     representative described in the preceding sentence. If the 
     representative was acting on behalf of an employer or any 
     firm or other entity in connection with the conduct giving 
     rise to such penalty, the Secretary may impose a monetary 
     penalty on such employer, firm, or entity if it knew, or 
     reasonably should have known, of such conduct. Such penalty 
     may be in addition to, or in lieu of, any suspension, 
     disbarment, or censure of the representative.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to actions taken after the date of the enactment 
     of this Act.
       (b) Tax Opinion Standards.--Section 330 of such title 31 is 
     amended by adding at the end the following new subsection:
       ``(d) The Secretary of the Treasury shall impose standards 
     applicable to the rendering of written advice with respect to 
     any potentially abusive tax shelter or any entity, plan, 
     arrangement, or transaction which has a potential for tax 
     avoidance or evasion. Such standards shall address, but not 
     be limited to, the following issues:
       ``(1) Independence of the practitioner issuing such written 
     advice from persons promoting, marketing, or recommending the 
     subject of the advice.
       ``(2) Collaboration among practitioners, or between a 
     practitioner and other party, which could result in such 
     collaborating parties having a joint financial interest in 
     the subject of the advice.
       ``(3) Avoidance of conflicts of interest which would impair 
     auditor independence.
       ``(4) For written advice issued by a firm, standards for 
     reviewing the advice and ensuring the consensus support of 
     the firm for positions taken.
       ``(5) Reliance on reasonable factual representations by the 
     taxpayer and other parties.
       ``(6) Appropriateness of the fees charged by the 
     practitioner for the written advice.''.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5624(a)(2) of this Act, such section, and the 
     amendments made by such section, shall not take effect.

     SEC. 5680. PREVENTING CORPORATE EXPATRIATION TO AVOID UNITED 
                   STATES INCOME TAX.

       (a) In General.--Paragraph (4) of section 7701(a) (defining 
     domestic) is amended to read as follows:
       ``(4) Domestic.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `domestic' when applied to a corporation or 
     partnership means created or organized in the United States 
     or under the law of the United States or of any State unless, 
     in the case of a partnership, the Secretary provides 
     otherwise by regulations.
       ``(B) Certain corporations treated as domestic.--
       ``(i) In general.--The acquiring corporation in a corporate 
     expatriation transaction shall be treated as a domestic 
     corporation.
       ``(ii) Corporate expatriation transaction.--For purposes of 
     this subparagraph, the term `corporate expatriation 
     transaction' means any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly 
     substantially all of the properties held directly or 
     indirectly by a domestic corporation, and
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation.

       ``(iii) Lower stock ownership requirement in certain 
     cases.--Subclause (II) of clause (ii) shall be applied by 
     substituting `50 percent' for `80 percent' with respect to 
     any nominally foreign corporation if--

       ``(I) such corporation does not have substantial business 
     activities (when compared to the total business activities of 
     the expanded affiliated group) in the foreign country in 
     which or under the law of which the corporation is created or 
     organized, and
       ``(II) the stock of the corporation is publicly traded and 
     the principal market for the public trading of such stock is 
     in the United States.

       ``(iv) Partnership transactions.--The term `corporate 
     expatriation transaction' includes any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly properties 
     constituting a trade or business of a domestic partnership,
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former partners of the domestic 
     partnership or related foreign partnerships (determined 
     without regard to stock of the acquiring corporation which is 
     sold in a public offering related to the transaction), and
       ``(III) the acquiring corporation meets the requirements of 
     subclauses (I) and (II) of clause (iii).

[[Page S1125]]

       ``(v) Special rules.--For purposes of this subparagraph--

       ``(I) a series of related transactions shall be treated as 
     1 transaction, and
       ``(II) stock held by members of the expanded affiliated 
     group which includes the acquiring corporation shall not be 
     taken into account in determining ownership.

       ``(vi) Other definitions.--For purposes of this 
     subparagraph--

       ``(I) Nominally foreign corporation.--The term `nominally 
     foreign corporation' means any corporation which would (but 
     for this subparagraph) be treated as a foreign corporation.
       ``(II) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group (as defined in 
     section 1504(a) without regard to section 1504(b)).
       ``(III) Related foreign partnership.--A foreign partnership 
     is related to a domestic partnership if they are under common 
     control (within the meaning of section 482), or they shared 
     the same trademark or tradename.''

       (b) Effective Dates.--
       (1) In general.--The amendment made by this section shall 
     apply to corporate expatriation transactions completed after 
     September 11, 2001.
       (2) Special rule.--The amendment made by this section shall 
     also apply to corporate expatriation transactions completed 
     on or before September 11, 2001, but only with respect to 
     taxable years of the acquiring corporation beginning after 
     December 31, 2003.
       (c) Prior Section To Have No Effect.--Section 5651(a)(2) of 
     this Act, and the amendments made by such section, shall not 
     take effect.
                                 ______
                                 
  SA 2454. Mr. LEVIN (for himself and Ms. Stabenow) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1298, after line 24, add the following:

         Subtitle H--Incentives for Alternative Motor Vehicles

                           PART I--INCENTIVES

     SEC. 5671. ALTERNATIVE MOTOR VEHICLE CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to foreign tax credit, etc.) is amended 
     by adding at the end the following new section:

     ``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of--
       ``(1) the new qualified fuel cell motor vehicle credit 
     determined under subsection (b),
       ``(2) the new qualified hybrid motor vehicle credit 
     determined under subsection (c), and
       ``(3) the new qualified advanced lean burn technology motor 
     vehicle credit determined under subsection (f).
       ``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified fuel cell motor vehicle credit determined under 
     this subsection with respect to a new qualified fuel cell 
     motor vehicle placed in service by the taxpayer during the 
     taxable year is--
       ``(A) $4,000, if such vehicle has a gross vehicle weight 
     rating of not more than 8,500 pounds, and
       ``(B) $10,000, if such vehicle has a gross vehicle weight 
     rating of more than 8,500 pounds but not more than 14,000 
     pounds.
       ``(2) Increase for fuel efficiency.--
       ``(A) In general.--The amount determined under paragraph 
     (1)(A) with respect to a new qualified fuel cell motor 
     vehicle which is a passenger automobile or light truck shall 
     be increased by--
       ``(i) $1,000, if such vehicle achieves at least 150 percent 
     but less than 175 percent of the 2002 model year city fuel 
     economy,
       ``(ii) $1,500, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2002 model year city 
     fuel economy,
       ``(iii) $2,000, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2002 model year city 
     fuel economy,
       ``(iv) $2,500, if such vehicle achieves at least 225 
     percent but less than 250 percent of the 2002 model year city 
     fuel economy,
       ``(v) $3,000, if such vehicle achieves at least 250 percent 
     but less than 275 percent of the 2002 model year city fuel 
     economy,
       ``(vi) $3,500, if such vehicle achieves at least 275 
     percent but less than 300 percent of the 2002 model year city 
     fuel economy, and
       ``(vii) $4,000, if such vehicle achieves at least 300 
     percent of the 2002 model year city fuel economy.
       ``(B) 2002 model year city fuel economy.--For purposes of 
     subparagraph (A), the 2002 model year city fuel economy with 
     respect to a vehicle shall be determined in accordance with 
     the following tables:
       ``(i) In the case of a passenger automobile:
``If vehicle inertia weight clThe 2002 model year city fuel economy is:
  1,500 or 1,750 lbs..........................................45.2 mpg 
  2,000 lbs...................................................39.6 mpg 
  2,250 lbs...................................................35.2 mpg 
  2,500 lbs...................................................31.7 mpg 
  2,750 lbs...................................................28.8 mpg 
  3,000 lbs...................................................26.4 mpg 
  3,500 lbs...................................................22.6 mpg 
  4,000 lbs...................................................19.8 mpg 
  4,500 lbs...................................................17.6 mpg 
  5,000 lbs...................................................15.9 mpg 
  5,500 lbs...................................................14.4 mpg 
  6,000 lbs...................................................13.2 mpg 
  6,500 lbs...................................................12.2 mpg 
  7,000 to 8,500 lbs..........................................11.3 mpg.
       ``(ii) In the case of a light truck:

``If vehicle inertia weight clThe 2002 model year city fuel economy is:
  1,500 or 1,750 lbs..........................................39.4 mpg 
  2,000 lbs...................................................35.2 mpg 
  2,250 lbs...................................................31.8 mpg 
  2,500 lbs...................................................29.0 mpg 
  2,750 lbs...................................................26.8 mpg 
  3,000 lbs...................................................24.9 mpg 
  3,500 lbs...................................................21.8 mpg 
  4,000 lbs...................................................19.4 mpg 
  4,500 lbs...................................................17.6 mpg 
  5,000 lbs...................................................16.1 mpg 
  5,500 lbs...................................................14.8 mpg 
  6,000 lbs...................................................13.7 mpg 
  6,500 lbs...................................................12.8 mpg 
  7,000 to 8,500 lbs..........................................12.1 mpg.
       ``(C) Vehicle inertia weight class.--For purposes of 
     subparagraph (B), the term `vehicle inertia weight class' has 
     the same meaning as when defined in regulations prescribed by 
     the Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(3) New qualified fuel cell motor vehicle.--For purposes 
     of this subsection, the term `new qualified fuel cell motor 
     vehicle' means a motor vehicle--
       ``(A) which is propelled by power derived from 1 or more 
     cells which convert chemical energy directly into electricity 
     by combining oxygen with hydrogen fuel which is stored on 
     board the vehicle in any form and may or may not require 
     reformation prior to use,
       ``(B) which, in the case of a passenger automobile or light 
     truck for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds the Bin 5 Tier 
     II emission level established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(E) which is made by a manufacturer.
       ``(c) New Qualified Hybrid Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified hybrid motor vehicle credit determined under this 
     subsection with respect to a new qualified hybrid motor 
     vehicle placed in service by the taxpayer during the taxable 
     year is the credit amount determined under paragraph (2).
       ``(2) Credit amount.--
       ``(A) In general.--The credit amount determined under this 
     paragraph shall be determined in accordance with the 
     following table:
       ``In the case of a new qualified hybrid motor vehicle which 
     is a passenger automobile, medium duty passenger vehicle, or 
     light truck and which provides the following percentage of 
     the maximum available power:

``If percentage of the maximum available power is:The credit amount is:
  At least 4 percent but less than 10 percent.................$350 ....

  At least 10 percent but less than 20 percent................$600 ....

  At least 20 percent but less than 30 percent................$850 ....

  At least 30 percent.......................................$1,100.....

       ``(B) Increase for fuel efficiency.--
       ``(i) Amount.--The amount determined under subparagraph (A) 
     with respect to a new qualified hybrid motor vehicle which is 
     a passenger automobile or light truck shall be increased by--

       ``(I) $600, if such vehicle achieves at least 125 percent 
     but less than 150 percent of the 2002 model year city fuel 
     economy,
       ``(II) $1,100, if such vehicle achieves at least 150 
     percent but less than 175 percent of the 2002 model year city 
     fuel economy,
       ``(III) $1,600, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2002 model year city 
     fuel economy,
       ``(IV) $2,100, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2002 model year city 
     fuel economy,
       ``(V) $2,600, if such vehicle achieves at least 225 percent 
     but less than 250 percent of the 2002 model year city fuel 
     economy, and
       ``(VI) $3,100, if such vehicle achieves at least 250 
     percent of the 2002 model year city fuel economy.

       ``(ii) 2002 model year city fuel economy.--For purposes of 
     clause (i), the 2002 model year city fuel economy with 
     respect to a vehicle shall be determined on a gasoline gallon 
     equivalent basis as determined by the Administrator of the 
     Environmental Protection Agency using the tables provided in 
     subsection (b)(2)(B) with respect to such vehicle.
       ``(iii) Option to use like vehicle.--For purposes of clause 
     (i), at the option of the vehicle manufacturer, the increase 
     for fuel efficiency may be calculated by comparing the new 
     qualified hybrid motor vehicle to a `like vehicle'.
       ``(C) Conservation credit.--
       ``(i) Amount.--The amount determined under subparagraph (A) 
     with respect to a

[[Page S1126]]

     passenger automobile, medium duty passenger vehicle, or light 
     truck shall be increased by--

       ``(I) $350, if such vehicle achieves a lifetime fuel 
     savings of at least 1,200 but less than 1,800 gallons of 
     gasoline,
       ``(II) $600, if such vehicle achieves a lifetime fuel 
     savings of at least 1,800 but less than 2,400 gallons of 
     gasoline,
       ``(III) $850, if such vehicle achieves a lifetime fuel 
     savings of at least 2,400 but less than 3,000 gallons of 
     gasoline, and
       ``(IV) $1,100, if such vehicle achieves a lifetime fuel 
     savings of at least 3,000 gallons of gasoline.

       ``(ii) Lifetime fuel savings for like vehicle.--For 
     purposes of clause (i), at the option of the vehicle 
     manufacturer, the lifetime fuel savings fuel may be 
     calculated by comparing the new qualified hybrid motor 
     vehicle to a `like vehicle'.
       ``(D) Definitions relating to credit amount.--
       ``(i) Maximum available power.--For purposes of 
     subparagraph (A), the term `maximum available power' means 
     the maximum power available from the rechargeable energy 
     storage system, during a standard 10 second pulse power or 
     equivalent test, divided by such maximum power and the SAE 
     net power of the heat engine.
       ``(ii) Like vehicle.--For purposes of subparagraph 
     (B)(iii), the term `like vehicle' for a new qualified hybrid 
     motor vehicle derived from a conventional production vehicle 
     produced in the same model year means a model that is 
     equivalent in the following areas:

       ``(I) Body style (2-door or 4-door).
       ``(II) Transmission (automatic or manual).
       ``(III) Acceleration performance ( 0.05 seconds).
       ``(IV) Drivetrain (2-wheel drive or 4-wheel drive).
       ``(V) Certification by the Administrator of the 
     Environmental Protection Agency.

       ``(iii) Lifetime fuel savings.--For purposes of 
     subparagraph (C), the term `lifetime fuel savings' shall be 
     calculated by dividing 120,000 by the difference between the 
     2002 model year city fuel economy for the vehicle inertia 
     weight class (as defined in subsection (b)(2)(C)) and the 
     city fuel economy for the new qualified hybrid motor vehicle.
       ``(3) New qualified hybrid motor vehicle.--For purposes of 
     this subsection--
       ``(A) In general.--The term `new qualified hybrid motor 
     vehicle' means a motor vehicle--
       ``(i) which draws propulsion energy from onboard sources of 
     stored energy which are both--

       ``(I) an internal combustion or heat engine using 
     consumable fuel, and
       ``(II) a rechargeable energy storage system,

       ``(ii) which, in the case of a passenger automobile, medium 
     duty passenger vehicle, or light truck--

       ``(I) for 2002 and later model vehicles, has received a 
     certificate of conformity under the Clean Air Act and meets 
     or exceeds the equivalent qualifying California low emission 
     vehicle standard under section 243(e)(2) of the Clean Air Act 
     for that make and model year, and
       ``(II) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds the Bin 5 Tier 
     II emission level established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle,

       ``(iii) the original use of which commences with the 
     taxpayer,
       ``(iv) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(v) which is made by a manufacturer.
       ``(B) Consumable fuel.--For purposes of subparagraph 
     (A)(i)(I), the term `consumable fuel' means any solid, 
     liquid, or gaseous matter which releases energy when consumed 
     by an auxiliary power unit.
       ``(d) New Qualified Advanced Lean Burn Technology Motor 
     Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified advanced lean burn technology motor vehicle credit 
     determined under this subsection with respect to a new 
     qualified advanced lean burn technology motor vehicle placed 
     in service by the taxpayer during the taxable year is the 
     credit amount determined under paragraph (2).
       ``(2) Credit amount.--
       ``(A) Increase for fuel efficiency.--The credit amount 
     determined under this paragraph shall be--
       ``(i) $350, if such vehicle achieves at least 125 percent 
     but less than 150 percent of the 2002 model year city fuel 
     economy,
       ``(ii) $600, if such vehicle achieves at least 150 percent 
     but less than 175 percent of the 2002 model year city fuel 
     economy,
       ``(iii) $850, if such vehicle achieves at least 175 percent 
     but less than 200 percent of the 2002 model year city fuel 
     economy, and
       ``(iv) $1,100, if such vehicle achieves at least 200 
     percent of the 2002 model year city fuel economy.

     For purposes of clause (i), the 2002 model year city fuel 
     economy with respect to a vehicle shall be determined using 
     the tables provided in subsection (b)(2)(B) with respect to 
     such vehicle.
       ``(B) Conservation credit.--The amount determined under 
     subparagraph (A) with respect to a new qualified advanced 
     lean burn technology motor vehicle shall be increased by--
       ``(i) $350, if such vehicle achieves a lifetime fuel 
     savings of at least 1,200 but less than 1,800 gallons of 
     gasoline,
       ``(ii) $600, if such vehicle achieves a lifetime fuel 
     savings of at least 1,800 but less than 2,400 gallons of 
     gasoline,
       ``(iii) $850, if such vehicle achieves a lifetime fuel 
     savings of at least 2,400 but less than 3,000 gallons of 
     gasoline, and
       ``(iv) $1,100, if such vehicle achieves a lifetime fuel 
     savings of at least 3,000 gallons of gasoline.
       ``(C) Option to use like vehicle.--At the option of the 
     vehicle manufacturer, the increase for fuel efficiency and 
     conservation credit may be calculated by comparing the new 
     qualified advanced lean burn technology motor vehicle to a 
     like vehicle.
       ``(3) Definitions.--For purposes of this subsection--
       ``(A) New qualified advanced lean burn technology motor 
     vehicle.--The term `new qualified advanced lean burn 
     technology motor vehicle' means a motor vehicle with an 
     internal combustion engine--
       ``(i) which is designed to operate primarily using more air 
     than is necessary for complete combustion of the fuel,
       ``(ii) which incorporates direct injection,
       ``(iii) which achieves at least 125 percent of the 2002 
     model year city fuel economy,
       ``(iv) which, for 2005 and later model vehicles, has 
     received a certificate that such vehicle meets or exceeds the 
     Bin 5 Tier II emission levels for passenger vehicles 
     established in regulations prescribed by the Administrator of 
     the Environmental Protection Agency under section 202(i) of 
     the Clean Air Act for that make and model year vehicle, 
     except any manufacturer may provide not to exceed 5,000 
     passenger vehicles per year which are Tier II compliant,
       ``(v) the original use of which commences with the 
     taxpayer,
       ``(vi) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(vii) which is made by a manufacturer.
       ``(B) Like vehicle.--The term `like vehicle' for a new 
     qualified advanced lean burn technology motor vehicle derived 
     from a conventional production vehicle produced in the same 
     model year means a model that is equivalent in the following 
     areas:
       ``(i) Body style (2-door or 4-door),
       ``(ii) Transmission (automatic or manual),
       ``(iii) Acceleration performance ( 0.05 seconds).
       ``(iv) Drivetrain (2-wheel drive or 4-wheel drive).
       ``(v) Certification by the Administrator of the 
     Environmental Protection Agency.
       ``(C) Lifetime fuel savings.--The term `lifetime fuel 
     savings' shall be calculated by dividing 120,000 by the 
     difference between the 2002 model year city fuel economy for 
     the vehicle inertia weight class (as defined in subsection 
     (b)(2)(C)) and the city fuel economy for the new qualified 
     hybrid motor vehicle.
       ``(e) Application With Other Credits.--The credit allowed 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(1) the regular tax for the taxable year reduced by the 
     sum of the credits allowable under subpart A and sections 27, 
     29, and 30, over
       ``(2) the tentative minimum tax for the taxable year.
       ``(f) Limitation on Number of New Qualified Hybrid and 
     Advanced Lean-Burn Technology Vehicles Eligible for Credit.--
       ``(1) In general.--In the case of a qualified vehicle sold 
     during the phaseout period, only the applicable percentage of 
     the credit otherwise allowable under subsection (c) or (d) 
     shall be allowed.
       ``(2) Phaseout period.--For purposes of this subsection, 
     the phaseout period is the period beginning with the second 
     calendar quarter following the calendar quarter which 
     includes the first date on which the number of qualified 
     vehicles manufactured by the manufacturer of the vehicle 
     referred to in paragraph (1) sold for use in the United 
     States after the date of the enactment of this section is at 
     least 80,000.
       ``(3) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 50 percent for the first 2 calendar quarters of the 
     phaseout period,
       ``(B) 25 percent for the 3d and 4th calendar quarters of 
     the phaseout period, and
       ``(C) 0 percent for each calendar quarter thereafter.
       ``(4) Controlled groups.--
       ``(A) In general.--For purposes of this subsection, all 
     persons treated as a single employer under subsection (a) or 
     (b) of section 52 or subsection (m) or (o) of section 414 
     shall be treated as a single manufacturer.
       ``(B) Inclusion of foreign corporations.--For purposes of 
     subparagraph (A), in applying subsections (a) and (b) of 
     section 52 to this section, section 1563 shall be applied 
     without regard to subsection (b)(2)(C) thereof.
       ``(5) Qualified vehicle.--For purposes of this subsection, 
     the term `qualified vehicle' means any new qualified hybrid 
     motor vehicle and any new advanced lean burn technology motor 
     vehicle.
       ``(g) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Motor vehicle.--The term `motor vehicle' has the 
     meaning given such term by section 30(c)(2).
       ``(2) City fuel economy.--The city fuel economy with 
     respect to any vehicle shall be measured in a manner which is 
     substantially similar to the manner city fuel economy is 
     measured in accordance with procedures under part 600 of 
     subchapter Q of chapter I of

[[Page S1127]]

     title 40, Code of Federal Regulations, as in effect on the 
     date of the enactment of this section.
       ``(3) Other terms.--The terms `automobile', `passenger 
     automobile', `medium duty passenger vehicle', `light truck', 
     and `manufacturer' have the meanings given such terms in 
     regulations prescribed by the Administrator of the 
     Environmental Protection Agency for purposes of the 
     administration of title II of the Clean Air Act (42 U.S.C. 
     7521 et seq.).
       ``(4)  Reduction in basis.--For purposes of this subtitle, 
     the basis of any property for which a credit is allowable 
     under subsection (a) shall be reduced by the amount of such 
     credit so allowed (determined without regard to subsection 
     (e)).
       ``(5) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter with respect to a 
     vehicle described under subsection (b) or (c), shall be 
     reduced by the amount of credit allowed under subsection (a) 
     for such vehicle for the taxable year.
       ``(6) Property used by tax-exempt entities.--In the case of 
     a credit amount which is allowable with respect to a motor 
     vehicle which is acquired by an entity exempt from tax under 
     this chapter, the person which sells or leases such vehicle 
     to the entity shall be treated as the taxpayer with respect 
     to the vehicle for purposes of this section and the credit 
     shall be allowed to such person, but only if the person 
     clearly discloses to the entity at the time of any sale or 
     lease the specific amount of any credit otherwise allowable 
     to the entity under this section.
       ``(7) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit (including 
     recapture in the case of a lease period of less than the 
     economic life of a vehicle).
       ``(8) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed under subsection (a) 
     with respect to any property referred to in section 50(b) or 
     with respect to the portion of the cost of any property taken 
     into account under section 179.
       ``(9) Election to not take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(10) Carryback and carryforward allowed.--
       ``(A) In general.--If the credit allowable under subsection 
     (a) for a taxable year exceeds the amount of the limitation 
     under subsection (e) for such taxable year (in this paragraph 
     referred to as the `unused credit year'), such excess shall 
     be a credit carryback to each of the 3 taxable years 
     preceding the unused credit year and a credit carryforward to 
     each of the 20 taxable years following the unused credit 
     year, except that no excess may be carried to a taxable year 
     beginning before the date of the enactment of this paragraph.
       ``(B) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryback and credit 
     carryforward under subparagraph (A).
       ``(11) Interaction with air quality and motor vehicle 
     safety standards.--Unless otherwise provided in this section, 
     a motor vehicle shall not be considered eligible for a credit 
     under this section unless such vehicle is in compliance 
     with--
       ``(A) the applicable provisions of the Clean Air Act for 
     the applicable make and model year of the vehicle (or 
     applicable air quality provisions of State law in the case of 
     a State which has adopted such provision under a waiver under 
     section 209(b) of the Clean Air Act), and
       ``(B) the motor vehicle safety provisions of sections 30101 
     through 30169 of title 49, United States Code.
       ``(h) Regulations.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall promulgate such regulations as necessary to 
     carry out the provisions of this section.
       ``(2) Coordination in prescription of certain 
     regulations.--The Secretary of the Treasury, in coordination 
     with the Secretary of Transportation and the Administrator of 
     the Environmental Protection Agency, shall prescribe such 
     regulations as necessary to determine whether a motor vehicle 
     meets the requirements to be eligible for a credit under this 
     section.
       ``(i) Application of Section.--This section shall apply 
     to----
       ``(1) any new qualified fuel cell motor vehicle (as 
     described in subsection (b)) placed in service after December 
     31, 2004, and purchased before January 1, 2015, and
       ``(2) any new qualified hybrid motor vehicle (as described 
     in subsection (c)) or new qualified advanced lean burn 
     technology motor vehicle (as described in subsection (d)) 
     placed in service after December 31, 2004, and purchased 
     before January 1, 2010.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (27), by striking the period at the end of 
     paragraph (28) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(29) to the extent provided in section 30B(g)(4).''.
       (2) Section 55(c)(2) is amended by inserting ``30B(e),'' 
     after ``30(b)(3),''.
       (3) Section 6501(m) is amended by inserting ``30B(g)(9),'' 
     after ``30(d)(4),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 30A the following new item:

``Sec. 30B. Alternative motor vehicle credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 5672. CREDIT FOR INSTALLATION OF ALTERNATIVE FUELING 
                   STATIONS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to foreign tax credit, etc.), as amended 
     by this Act, is amended by adding at the end the following 
     new section:

     ``SEC. 30C. CLEAN-FUEL VEHICLE REFUELING PROPERTY CREDIT.

       ``(a) Credit Allowed.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to 50 percent of the amount paid or incurred 
     by the taxpayer during the taxable year for the installation 
     of qualified clean-fuel vehicle refueling property.
       ``(b) Limitation.--The credit allowed under subsection 
     (a)--
       ``(1) with respect to any retail clean-fuel vehicle 
     refueling property, shall not exceed $30,000, and
       ``(2) with respect to any residential clean-fuel vehicle 
     refueling property, shall not exceed $1,000.
       ``(c) Year Credit Allowed.--Notwithstanding subsection (a), 
     no credit shall be allowed under subsection (a) with respect 
     to any qualified clean-fuel vehicle refueling property before 
     the taxable year in which the property is placed in service 
     by the taxpayer.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified clean-fuel vehicle refueling property.--The 
     term `qualified clean-fuel vehicle refueling property' has 
     the same meaning given such term by section 179A(d).
       ``(2) Residential clean-fuel vehicle refueling property.--
     The term `residential clean-fuel vehicle refueling property' 
     means qualified clean-fuel vehicle refueling property which 
     is installed on property which is used as the principal 
     residence (within the meaning of section 121) of the 
     taxpayer.
       ``(3) Retail clean-fuel vehicle refueling property.--The 
     term `retail clean-fuel vehicle refueling property' means 
     qualified clean-fuel vehicle refueling property which is 
     installed on property (other than property described in 
     paragraph (2)) used in a trade or business of the taxpayer.
       ``(e) Application With Other Credits.--The credit allowed 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(1) the regular tax for the taxable year reduced by the 
     sum of the credits allowable under subpart A and sections 27, 
     29, 30, and 30B, over
       ``(2) the tentative minimum tax for the taxable year.
       ``(f) Basis Reduction.--For purposes of this title, the 
     basis of any property shall be reduced by the portion of the 
     cost of such property taken into account under subsection 
     (a).
       ``(g) No Double Benefit.--
       ``(1) Coordination with other deductions and credits.--
     Except as provided in paragraph (2), the amount of any 
     deduction or other credit allowable under this chapter for 
     any cost taken into account in computing the amount of the 
     credit determined under subsection (a) shall be reduced by 
     the amount of such credit attributable to such cost.
       ``(2) No deduction allowed under section 179a.--No 
     deduction shall be allowed under section 179A with respect to 
     any property with respect to which a credit is allowed under 
     subsection (a).
       ``(h) Refueling Property Installed for Tax-Exempt 
     Entities.--In the case of qualified clean-fuel vehicle 
     refueling property installed on property owned or used by an 
     entity exempt from tax under this chapter, the person which 
     installs such refueling property for the entity shall be 
     treated as the taxpayer with respect to the refueling 
     property for purposes of this section (and such refueling 
     property shall be treated as retail clean-fuel vehicle 
     refueling property) and the credit shall be allowed to such 
     person, but only if the person clearly discloses to the 
     entity in any installation contract the specific amount of 
     the credit allowable under this section.
       ``(i) Carryforward Allowed.--
       ``(1) In general.--If the credit allowable under subsection 
     (a) for a taxable year exceeds the amount of the limitation 
     under subsection (e) for such taxable year, such excess shall 
     be a credit carryforward to each of the 20 taxable years 
     following such taxable year.
       ``(2) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryforward under 
     paragraph (1).
       ``(j) Special Rules.--Rules similar to the rules of 
     paragraphs (4) and (5) of section 179A(e) shall apply.
       ``(k) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(l) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (b) Modifications to Extension of Deduction for Certain 
     Refueling Property.--

[[Page S1128]]

       (1) Increase in deduction for hydrogen infrastructure.--
     Section 179A(b)(2)(A)(i) is amended by inserting ``($200,000 
     in the case of property relating to hydrogen)'' after 
     ``$100,000''.
       (2) Extension of deduction.--Subsection (f) of section 179A 
     is amended to read as follows:
       ``(f) Termination.--This section shall not apply to any 
     property placed in service--
       ``(1) in the case of property relating to hydrogen, after 
     December 31, 2011, and
       ``(2) in the case of any other property, after December 31, 
     2007.''.
       (3) Extension of phaseout.--Section 179A(b)(1)(B) is 
     amended--
       (A) by striking ``calendar year 2004'' in clause (i) and 
     inserting ``calendar years 2004 and 2005 (calendar years 2004 
     through 2009 in the case of property relating to hydrogen)'',
       (B) by striking ``2005'' in clause (ii) and inserting 
     ``2006 (calendar year 2010 in the case of property relating 
     to hydrogen)'', and
       (C) by striking ``2006'' in clause (iii) and inserting 
     ``2007 (calendar year 2011 in the case of property relating 
     to hydrogen)''.
       (c) Incentive for Production of Hydrogen at Qualified 
     Clean-Fuel Vehicle Refueling Property.--Section 179A(d) 
     (defining qualified clean-fuel vehicle refueling property) is 
     amended by adding at the end the following new flush 
     sentence:

     ``In the case of clean-burning fuel which is hydrogen 
     produced from another clean-burning fuel, paragraph (3)(A) 
     shall be applied by substituting `production, storage, or 
     dispensing' for `storage or dispensing' both places it 
     appears.''.
       (d) Conforming Amendments.--
       (1) Section 1016(a), as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (28), by striking 
     the period at the end of paragraph (29) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(30) to the extent provided in section 30C(f).''.
       (2) Section 55(c)(2), as amended by this Act, is amended by 
     inserting ``30C(e),'' after ``30B(e),''.
       (3) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by inserting after the item relating to section 30B the 
     following new item:

``Sec. 30C. Clean-fuel vehicle refueling property credit.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 5673. BIODIESEL CREDIT EXPANSION.

       Section 312(b) of the Energy Policy Act of 1992 (42 U.S.C. 
     13220(b)) is amended--
       (1) by striking ``Credits.--'' and all that follows through 
     ``At the request'' and inserting ``Credits.--At the 
     request''; and
       (2) by striking paragraph (2).

                      PART II--REVENUE PROVISIONS

     SEC. 5675. PENALTY FOR PROMOTING ABUSIVE TAX SHELTERS.

       (a) Penalty for Promoting Abusive Tax Shelters.--Section 
     6700 (relating to promoting abusive tax shelters, etc.) is 
     amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (d) and (e), respectively,
       (2) by striking ``a penalty'' and all that follows through 
     the period in the first sentence of subsection (a) and 
     inserting ``a penalty determined under subsection (b)'', and
       (3) by inserting after subsection (a) the following new 
     subsections:
       ``(b) Amount of Penalty; Calculation of Penalty; Liability 
     for Penalty.--
       ``(1) Amount of penalty.--The amount of the penalty imposed 
     by subsection (a) shall not exceed the greater of--
       ``(A) 150 percent of the gross income derived (or to be 
     derived) from such activity by the person or persons subject 
     to such penalty, and
       ``(B) if readily subject to calculation, the total amount 
     of underpayment by the taxpayer (including penalties, 
     interest, and taxes) in connection with such activity.
       ``(2) Calculation of penalty.--The penalty amount 
     determined under paragraph (1) shall be calculated with 
     respect to each instance of an activity described in 
     subsection (a), each instance in which income was derived by 
     the person or persons subject to such penalty, and each 
     person who participated in such an activity.
       ``(3) Liability for penalty.--If more than 1 person is 
     liable under subsection (a) with respect to such activity, 
     all such persons shall be jointly and severally liable for 
     the penalty under such subsection.
       ``(c) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to activities after the date of the enactment of 
     this Act.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5625 of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5676. PENALTY FOR AIDING AND ABETTING THE UNDERSTATEMENT 
                   OF TAX LIABILITY.

       (a) In General.--Section 6701(a) (relating to imposition of 
     penalty) is amended--
       (1) by inserting ``the tax liability or'' after ``respect 
     to,'' in paragraph (1),
       (2) by inserting ``aid, assistance, procurement, or advice 
     with respect to such'' before ``portion'' both places it 
     appears in paragraphs (2) and (3), and
       (3) by inserting ``instance of aid, assistance, 
     procurement, or advice or each such'' before ``document'' in 
     the matter following paragraph (3).
       (b) Amount of Penalty.--Subsection (b) of section 6701 
     (relating to penalties for aiding and abetting understatement 
     of tax liability) is amended to read as follows:
       ``(b) Amount of Penalty; Calculation of Penalty; Liability 
     for Penalty.--
       ``(1) Amount of penalty.--The amount of the penalty imposed 
     by subsection (a) shall not exceed the greater of--
       ``(i) 150 percent of the gross income derived (or to be 
     derived) from such aid, assistance, procurement, or advice 
     provided by the person or persons subject to such penalty, 
     and
       ``(ii) if readily subject to calculation, the total amount 
     of underpayment by the taxpayer (including penalties, 
     interest, and taxes) in connection with the understatement of 
     the liability for tax.
       ``(2) Calculation of penalty.--The penalty amount 
     determined under paragraph (1) shall be calculated with 
     respect to each instance of aid, assistance, procurement, or 
     advice described in subsection (a), each instance in which 
     income was derived by the person or persons subject to such 
     penalty, and each person who made such an understatement of 
     the liability for tax.
       ``(3) Liability for penalty.--If more than 1 person is 
     liable under subsection (a) with respect to providing such 
     aid, assistance, procurement, or advice, all such persons 
     shall be jointly and severally liable for the penalty under 
     such subsection.''.
       (c) Penalty Not Deductible.--Section 6701 is amended by 
     adding at the end the following new subsection:
       ``(g) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to activities after the date of the enactment of 
     this Act.

     SEC. 5677. PENALTY FOR FAILURE TO REGISTER TAX SHELTER.

       (a) In General.--Section 6707 (relating to failure to 
     furnish information regarding tax shelters) is amended to 
     read as follows:

     ``SEC. 6707. FAILURE TO FURNISH INFORMATION ON POTENTIALLY 
                   ABUSIVE TAX SHELTER OR LISTED TRANSACTION.

       ``(a) In General.--If a person who is required to file a 
     return under section 6111 with respect to any potentially 
     abusive tax shelter--
       ``(1) fails to file such return on or before the date 
     prescribed therefor, or
       ``(2) files false or incomplete information with the 
     Secretary with respect to such shelter,

     such person shall pay a penalty with respect to such return 
     in the amount determined under subsection (b).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     penalty imposed under subsection (a) with respect to any 
     failure shall be not less than $50,000 and not more than 
     $100,000.
       ``(2) Listed transactions.--The penalty imposed under 
     subsection (a) with respect to any listed transaction shall 
     be an amount equal to the greater of--
       ``(A) $200,000, or
       ``(B) 100 percent of the gross income derived by such 
     person for providing aid, assistance, procurement, advice, or 
     other services with respect to the listed transaction before 
     the date the return including the transaction is filed under 
     section 6111.
     Subparagraph (B) shall be applied by substituting `150 
     percent' for `100 percent' in the case of an intentional 
     failure or act described in subsection (a).
       ``(c) Certain Rules To Apply.--The provisions of section 
     6707A(d) allowing the Commissioner of Internal Revenue to 
     rescind a penalty under certain circumstances shall apply to 
     any penalty imposed under this section.
       ``(d) Potentially Abusive Tax Shelters and Listed 
     Transactions.--The terms `potentially abusive tax shelter' 
     and `listed transaction' have the respective meanings given 
     to such terms by section 6707A(c).
       ``(e) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (b) Clerical Amendment.--The item relating to section 6707 
     in the table of sections for part I of subchapter B of 
     chapter 68 is amended by striking ``regarding tax shelters'' 
     and inserting ``on potentially abusive tax shelter or listed 
     transaction''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns the due date for which is after the 
     date of the enactment of this Act.
       (d) Prior Section To Have No Effect.--Notwithstanding 
     section 5618(c) of this Act,

[[Page S1129]]

     such section, and the amendments made by such section, shall 
     not take effect.

     SEC. 5678. PENALTY FOR FAILING TO MAINTAIN CLIENT LIST.

       (a) In General.--Subsection (a) of section 6708 (relating 
     to failure to maintain lists of investors in potentially 
     abusive tax shelters) is amended to read as follows:
       ``(a) Imposition of Penalty.--
       ``(1) In general.--If any person who is required to 
     maintain a list under section 6112(a) fails to make such list 
     available upon written request to the Secretary in accordance 
     with section 6112(b)(1)(A) within 20 business days after the 
     date of the Secretary's request, such person shall pay a 
     penalty of $10,000 for each day of such failure after such 
     20th day. If such person makes available an incomplete list 
     upon such request, such person shall pay a penalty of $100 
     per each omitted name for each day of such omission after 
     such 20th day.
       ``(2) Good cause exception.--No penalty shall be imposed by 
     paragraph (1) with respect to the failure on any day if, in 
     the judgment of the Secretary, such failure is due to good 
     cause.''.
       (b) Penalty Not Deductible.--Section 6708 is amended by 
     adding at the end the following new subsection:
       ``(c) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to requests made by the Secretary of the Treasury 
     after the date of the enactment of this Act.
       (d) Prior Section To Have No Effect.--Notwithstanding 
     section 5619(b) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5679. PENALTY FOR FAILING TO DISCLOSE POTENTIALLY 
                   ABUSIVE TAX SHELTER.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by inserting 
     after section 6707 the following new section:

     ``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE POTENTIALLY 
                   ABUSIVE TAX SHELTER INFORMATION WITH RETURN OR 
                   STATEMENT.

       ``(a) Imposition of Penalty.--Any person who fails to 
     include on any return or statement any information with 
     respect to a potentially abusive tax shelter which is 
     required under section 6011 to be included with such return 
     or statement shall pay a penalty in the amount determined 
     under subsection (b).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the amount of the penalty under subsection (a) shall be 
     $50,000.
       ``(2) Listed transaction.--Except as provided in paragraph 
     3, the amount of the penalty under subsection (a) with 
     respect to a listed transaction shall be $100,000.
       ``(3) Increase in penalty for intentional nondisclosure.--
     In the case of an intentional failure by any person under 
     subsection (a), the penalty under paragraph (1) shall be 
     $100,000 and the penalty under paragraph (2) shall be 
     $200,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Potentially abusive tax shelter.--The term 
     `potentially abusive tax shelter' means any transaction with 
     respect to which information is required to be included with 
     a return or statement, because the Secretary has determined 
     by regulation or otherwise that such transaction has a 
     potential for tax avoidance or evasion.
       ``(2) Listed transaction.--Except as provided in 
     regulations, the term `listed transaction' means a 
     potentially abusive tax shelter which is the same as, or 
     substantially similar to, a transaction specifically 
     identified by the Secretary as a tax avoidance transaction 
     for purposes of section 6011.
       ``(d) Authority To Rescind Penalty.--
       ``(1) In general.--The Commissioner of Internal Revenue may 
     rescind all or any portion of a penalty imposed by this 
     section with respect to any violation if--
       ``(A) the violation is with respect to a potentially 
     abusive tax shelter other than a listed transaction,
       ``(B) the person on whom the penalty is imposed has a 
     history of complying with the requirements of this title,
       ``(C) it is shown that the violation is due to an 
     unintentional mistake of fact,
       ``(D) imposing the penalty would be against equity and good 
     conscience, and
       ``(E) rescinding the penalty would promote compliance with 
     the requirements of this title and effective tax 
     administration.
       ``(2) Discretion.--The exercise of authority under 
     paragraph (1) shall be at the sole discretion of the 
     Commissioner and may be delegated only to the head of the 
     Office of Tax Shelter Analysis. The Commissioner, in the 
     Commissioner's sole discretion, may establish a procedure to 
     determine if a penalty should be referred to the Commissioner 
     or the head of such Office for a determination under 
     paragraph (1).
       ``(3) No appeal.--Notwithstanding any other provision of 
     law, any determination under this subsection may not be 
     reviewed in any administrative or judicial proceeding.
       ``(4) Records.--If a penalty is rescinded under paragraph 
     (1), the Commissioner shall place in the file in the Office 
     of the Commissioner the opinion of the Commissioner or the 
     head of the Office of Tax Shelter Analysis with respect to 
     the determination, including--
       ``(A) the facts and circumstances of the transaction,
       ``(B) the reasons for the rescission, and
       ``(C) the amount of the penalty rescinded.

     A copy of such opinion shall be provided upon written request 
     to the Committee on Ways and Means of the House of 
     Representatives, the Committee on Finance of the Senate, the 
     Joint Committee on Taxation, or the General Accounting 
     Office.
       ``(5) Report.--The Commissioner shall each year report to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate--
       ``(A) a summary of the total number and aggregate amount of 
     penalties imposed, and rescinded, under this section, and
       ``(B) a description of each penalty rescinded under this 
     subsection and the reasons therefor.
       ``(e) Penalty Reported to SEC.--In the case of a person--
       ``(1) which is required to file periodic reports under 
     section 13 or 15(d) of the Securities Exchange Act of 1934 or 
     is required to be consolidated with another person for 
     purposes of such reports, and
       ``(2) which--
       ``(A) is required to pay a penalty under this section with 
     respect to a listed transaction,
       ``(B) is required to pay a penalty under section 6662A with 
     respect to any potentially abusive tax shelter at a rate 
     prescribed under section 6662A(c), or
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction,

     the requirement to pay such penalty shall be disclosed in 
     such reports filed by such person for such periods as the 
     Secretary shall specify. Failure to make a disclosure in 
     accordance with the preceding sentence shall be treated as a 
     failure to which the penalty under subsection (b)(2) applies.
       ``(f) Penalty in Addition to Other Penalties.--The penalty 
     imposed by this section shall be in addition to any other 
     penalty provided by law.
       ``(g) Penalty Not Deductible.--The payment of any penalty 
     imposed under this section or the payment of any amount to 
     settle or avoid the imposition of such penalty shall not be 
     considered an ordinary and necessary expense in carrying on a 
     trade or business for purposes of this title and shall not be 
     deductible by the person who is subject to such penalty or 
     who makes such payment.''.
       (b) Conforming Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by inserting after 
     the item relating to section 6707 the following:

``Sec. 6707A. Penalty for failure to include potentially abusive tax 
              shelter information with return or statement.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns and statements the due date for which 
     is after the date of the enactment of this Act.
       (d) Prior Section To Have No Effect.--Notwithstanding 
     section 5612(c) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5680. IMPROVED DISCLOSURE OF POTENTIALLY ABUSIVE TAX 
                   SHELTERS.

       (a) In General.--Section 6111 (relating to registration of 
     tax shelters) is amended to read as follows:

     ``SEC. 6111. DISCLOSURE OF POTENTIALLY ABUSIVE TAX SHELTERS.

       ``(a) In General.--Each material advisor with respect to 
     any potentially abusive tax shelter shall make a return (in 
     such form as the Secretary may prescribe) setting forth--
       ``(1) information identifying and describing such shelter,
       ``(2) information describing any potential tax benefits 
     expected to result from the shelter, and
       ``(3) such other information as the Secretary may 
     prescribe.

     Such return shall be filed not later than the date which is 
     30 days before the date on which the first sale of such 
     shelter occurs or on any other date specified by the 
     Secretary.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Material advisor.--
       ``(A) In general.--The term `material advisor' means any 
     person--
       ``(i) who provides any material aid, assistance, or advice 
     with respect to designing, organizing, managing, promoting, 
     selling, implementing, or carrying out any potentially 
     abusive tax shelter, and
       ``(ii) who directly or indirectly derives gross income in 
     excess of the threshold amount for such aid, assistance, or 
     advice.
       ``(B) Threshold amount.--For purposes of subparagraph (A), 
     the threshold amount is--
       ``(i) $50,000 in the case of a potentially abusive tax 
     shelter substantially all of the tax benefits from which are 
     provided to natural persons, and
       ``(ii) $100,000 in any other case.
       ``(2) Potentially abusive tax shelter.--The term 
     `potentially abusive tax shelter' has the meaning given to 
     such term by section 6707A(c).
       ``(c) Regulations.--The Secretary may prescribe regulations 
     which provide--
       ``(1) that only 1 person shall be required to meet the 
     requirements of subsection (a) in cases in which 2 or more 
     persons would otherwise be required to meet such 
     requirements,

[[Page S1130]]

       ``(2) exemptions from the requirements of this section, and
       ``(3) such rules as may be necessary or appropriate to 
     carry out the purposes of this section.''.
       (b) Conforming Amendments.--
       (1) The item relating to section 6111 in the table of 
     sections for subchapter B of chapter 61 is amended to read as 
     follows:

``Sec. 6111. Disclosure of potentially abusive tax shelters.''.
       (2)(A) So much of section 6112 as precedes subsection (c) 
     thereof is amended to read as follows:

     ``SEC. 6112. MATERIAL ADVISORS OF POTENTIALLY ABUSIVE TAX 
                   SHELTERS MUST KEEP CLIENT LISTS.

       ``(a) In General.--Each material advisor (as defined in 
     section 6111) with respect to any potentially abusive tax 
     shelter (as defined in section 6707A(c)) shall maintain, in 
     such manner as the Secretary may by regulations prescribe, a 
     list--
       ``(1) identifying each person with respect to whom such 
     advisor acted as such a material advisor with respect to such 
     shelter, and
       ``(2) containing such other information as the Secretary 
     may by regulations require.

     This section shall apply without regard to whether a material 
     advisor is required to file a return under section 6111 with 
     respect to such transaction.''.
       (B) Section 6112 is amended by redesignating subsection (c) 
     as subsection (b).
       (C) Section 6112(b), as redesignated by subparagraph (B), 
     is amended--
       (i) by inserting ``written'' before ``request'' in 
     paragraph (1)(A), and
       (ii) by striking ``shall prescribe'' in paragraph (2) and 
     inserting ``may prescribe''.
       (D) The item relating to section 6112 in the table of 
     sections for subchapter B of chapter 61 is amended to read as 
     follows:

``Sec. 6112. Material advisors of potentially abusive tax shelters must 
              keep client lists.''.
       (3)(A) The heading for section 6708 is amended to read as 
     follows:

     ``SEC. 6708. FAILURE TO MAINTAIN CLIENT LISTS WITH RESPECT TO 
                   POTENTIALLY ABUSIVE TAX SHELTERS.''.

       (B) The item relating to section 6708 in the table of 
     sections for part I of subchapter B of chapter 68 is amended 
     to read as follows:

``Sec. 6708. Failure to maintain client lists with respect to 
              potentially abusive tax shelters.''.
       (c) Required Disclosure Not Subject to Claim of 
     Confidentiality.--Section 6112(b)(1), as redesignated by 
     subsection (b)(2)(B), is amended by adding at the end the 
     following new flush sentence:

     ``For purposes of this section, the identity of any person on 
     such list shall not be privileged.''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to transactions 
     with respect to which material aid, assistance, or advice 
     referred to in section 6111(b)(1)(A)(i) of the Internal 
     Revenue Code of 1986 (as added by this section) is provided 
     after the date of the enactment of this Act.
       (2) No claim of confidentiality against disclosure.--The 
     amendment made by subsection (c) shall take effect as if 
     included in the amendments made by section 142 of the Deficit 
     Reduction Act of 1984.
       (e) Prior Section To Have No Effect.--Notwithstanding 
     section 5617(d) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5681. EXTENSION OF STATUTE OF LIMITATIONS FOR 
                   UNDISCLOSED TAX SHELTER.

       (a) In General.--Section 6501(c) (relating to exceptions) 
     is amended by adding at the end the following new paragraph:
       ``(10) Potentially abusive tax shelters.--If a taxpayer 
     fails to include on any return or statement for any taxable 
     year any information with respect to a potentially abusive 
     tax shelter (as defined in section 6707A(c)) which is 
     required under section 6011 to be included with such return 
     or statement, the time for assessment of any tax imposed by 
     this title with respect to such transaction shall not expire 
     before the date which is 2 years after the earlier of--
       ``(A) the date on which the Secretary is furnished the 
     information so required; or
       ``(B) the date that a material advisor (as defined in 
     section 6111) meets the requirements of section 6112 with 
     respect to a request by the Secretary under section 6112(b) 
     relating to such transaction with respect to such 
     taxpayer.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years with respect to which the period 
     for assessing a deficiency did not expire before the date of 
     the enactment of this Act.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5626(b) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5682. PENALTY FOR FAILING TO REPORT INTERESTS IN FOREIGN 
                   FINANCIAL ACCOUNTS.

       (a) In General.--Section 5321(a)(5) of title 31, United 
     States Code, is amended to read as follows:
       ``(5) Foreign financial agency transaction violation.--
       ``(A) Penalty authorized.--The Secretary of the Treasury 
     may impose a civil money penalty on any person who violates, 
     or causes any violation of, any provision of section 5314.
       ``(B) Amount of penalty.--
       ``(i) In general.--Except as provided in subparagraph (C), 
     the amount of any civil penalty imposed under subparagraph 
     (A) shall not exceed $10,000.
       ``(ii) Reasonable cause exception.--No penalty shall be 
     imposed under subparagraph (A) with respect to any violation 
     if--

       ``(I) such violation was due to reasonable cause, and
       ``(II) the amount of the transaction or the balance in the 
     account at the time of the transaction was properly reported.

       ``(C) Willful violations.--In the case of any person 
     willfully violating, or willfully causing any violation of, 
     any provision of section 5314, the amount of the civil 
     penalty imposed under subparagraph (A) shall be--
       ``(i) not less than $5,000,
       ``(ii) not more than 50 percent of the amount determined 
     under subparagraph (D), and
       ``(iii) subparagraph (B)(ii) shall not apply.
       ``(D) Amount.--The amount determined under this 
     subparagraph is--
       ``(i) in the case of a violation involving a transaction, 
     the amount of the transaction, or
       ``(ii) in the case of a violation involving a failure to 
     report the existence of an account or any identifying 
     information required to be provided with respect to an 
     account, the balance in the account at the time of the 
     violation.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to violations occurring after the date of the 
     enactment of this Act.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5622(b) of this Act, such section, and the amendments 
     made by such section, shall not take effect.

     SEC. 5683. CENSURE, CIVIL FINES, AND TAX OPINION STANDARDS 
                   FOR TAX PRACTITIONERS.

       (a) Censure; Imposition of Monetary Penalty.--
       (1) In general.--Section 330(b) of title 31, United States 
     Code, is amended--
       (A) by inserting ``, or censure,'' after ``Department'', 
     and
       (B) by adding at the end the following new flush sentence:

     ``The Secretary may impose a monetary penalty on any 
     representative described in the preceding sentence. If the 
     representative was acting on behalf of an employer or any 
     firm or other entity in connection with the conduct giving 
     rise to such penalty, the Secretary may impose a monetary 
     penalty on such employer, firm, or entity if it knew, or 
     reasonably should have known, of such conduct. Such penalty 
     may be in addition to, or in lieu of, any suspension, 
     disbarment, or censure of the representative.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to actions taken after the date of the enactment 
     of this Act.
       (b) Tax Opinion Standards.--Section 330 of such title 31 is 
     amended by adding at the end the following new subsection:
       ``(d) The Secretary of the Treasury shall impose standards 
     applicable to the rendering of written advice with respect to 
     any potentially abusive tax shelter or any entity, plan, 
     arrangement, or transaction which has a potential for tax 
     avoidance or evasion. Such standards shall address, but not 
     be limited to, the following issues:
       ``(1) Independence of the practitioner issuing such written 
     advice from persons promoting, marketing, or recommending the 
     subject of the advice.
       ``(2) Collaboration among practitioners, or between a 
     practitioner and other party, which could result in such 
     collaborating parties having a joint financial interest in 
     the subject of the advice.
       ``(3) Avoidance of conflicts of interest which would impair 
     auditor independence.
       ``(4) For written advice issued by a firm, standards for 
     reviewing the advice and ensuring the consensus support of 
     the firm for positions taken.
       ``(5) Reliance on reasonable factual representations by the 
     taxpayer and other parties.
       ``(6) Appropriateness of the fees charged by the 
     practitioner for the written advice.''.
       (c) Prior Section To Have No Effect.--Notwithstanding 
     section 5624(a)(2) of this Act, such section, and the 
     amendments made by such section, shall not take effect.

     SEC. 5684. PREVENTING CORPORATE EXPATRIATION TO AVOID UNITED 
                   STATES INCOME TAX.

       (a) In General.--Paragraph (4) of section 7701(a) (defining 
     domestic) is amended to read as follows:
       ``(4) Domestic.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `domestic' when applied to a corporation or 
     partnership means created or organized in the United States 
     or under the law of the United States or of any State unless, 
     in the case of a partnership, the Secretary provides 
     otherwise by regulations.
       ``(B) Certain corporations treated as domestic.--
       ``(i) In general.--The acquiring corporation in a corporate 
     expatriation transaction shall be treated as a domestic 
     corporation.
       ``(ii) Corporate expatriation transaction.--For purposes of 
     this subparagraph, the term `corporate expatriation 
     transaction' means any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such

[[Page S1131]]

     transaction, directly or indirectly substantially all of the 
     properties held directly or indirectly by a domestic 
     corporation, and
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation.

       ``(iii) Lower stock ownership requirement in certain 
     cases.--Subclause (II) of clause (ii) shall be applied by 
     substituting `50 percent' for `80 percent' with respect to 
     any nominally foreign corporation if--

       ``(I) such corporation does not have substantial business 
     activities (when compared to the total business activities of 
     the expanded affiliated group) in the foreign country in 
     which or under the law of which the corporation is created or 
     organized, and
       ``(II) the stock of the corporation is publicly traded and 
     the principal market for the public trading of such stock is 
     in the United States.

       ``(iv) Partnership transactions.--The term `corporate 
     expatriation transaction' includes any transaction if--

       ``(I) a nominally foreign corporation (referred to in this 
     subparagraph as the `acquiring corporation') acquires, as a 
     result of such transaction, directly or indirectly properties 
     constituting a trade or business of a domestic partnership,
       ``(II) immediately after the transaction, more than 80 
     percent of the stock (by vote or value) of the acquiring 
     corporation is held by former partners of the domestic 
     partnership or related foreign partnerships (determined 
     without regard to stock of the acquiring corporation which is 
     sold in a public offering related to the transaction), and
       ``(III) the acquiring corporation meets the requirements of 
     subclauses (I) and (II) of clause (iii).

       ``(v) Special rules.--For purposes of this subparagraph--

       ``(I) a series of related transactions shall be treated as 
     1 transaction, and
       ``(II) stock held by members of the expanded affiliated 
     group which includes the acquiring corporation shall not be 
     taken into account in determining ownership.

       ``(vi) Other definitions.--For purposes of this 
     subparagraph--

       ``(I) Nominally foreign corporation.--The term `nominally 
     foreign corporation' means any corporation which would (but 
     for this subparagraph) be treated as a foreign corporation.
       ``(II) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group (as defined in 
     section 1504(a) without regard to section 1504(b)).
       ``(III) Related foreign partnership.--A foreign partnership 
     is related to a domestic partnership if they are under common 
     control (within the meaning of section 482), or they shared 
     the same trademark or tradename.''

       (b) Effective Dates.--
       (1) In general.--The amendment made by this section shall 
     apply to corporate expatriation transactions completed after 
     September 11, 2001.
       (2) Special rule.--The amendment made by this section shall 
     also apply to corporate expatriation transactions completed 
     on or before September 11, 2001, but only with respect to 
     taxable years of the acquiring corporation beginning after 
     December 31, 2003.
       (c) Prior Section To Have No Effect.--Section 5651(a)(2) of 
     this Act, and the amendments made by such section, shall not 
     take effect.
                                 ______
                                 
  SA 2455. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Transportation Infrastructure Finance and Innovation 
     Act.--Notwithstanding section 188(a) of title 23, United 
     States Code, the amount authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     to carry out subchapter II of chapter I of that title shall 
     be $85,000,000 for each of fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2456. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal year 2004.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, shall be reduced by $270,000,000 for fiscal year 
     2004.
                                 ______
                                 
  SA 2457. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr.

[[Page S1132]]

Inhofe  to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Emergency Relief.--Notwithstanding an other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$255,000,000''.
                                 ______
                                 
  SA 2458. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 10.1 percent.
                                 ______
                                 
  SA 2459. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$277,000,000''.

[[Page S1133]]

       (d) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 5 percent.
                                 ______
                                 
  SA 2460. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;
       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$170,000,000''.
                                 ______
                                 
  SA 2461. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal year 2004.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by $780,000,000 for fiscal 
     year 2004.
                                 ______
                                 
  SA 2462. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;

[[Page S1134]]

       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by $330,000,000 for fiscal 
     year 2004.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``225,000,000''.
                                 ______
                                 
  SA 2463. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;
       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Transportation Infrastructure Finance and Innovation 
     Act.--Notwithstanding section 188(a) of title 23, United 
     States Code, the amount authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     to carry out subchapter II of chapter I of that title shall 
     be $110,000,000 for each of fiscal years 2004 through 2009.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$210,000,000''.
       (e) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2464. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;
       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Emergency Relief.--Notwithstanding any other provisions 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$190,000,000''.
       (d) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2465. Mr. BYRD submitted an amendment intended to be proposed to

[[Page S1135]]

amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $150,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;
       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$150,000,000''.
                                 ______
                                 
  SA 2466. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal year 2004.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by $900,000,000 for fiscal 
     year 2004.
                                 ______
                                 
  SA 2467. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $300,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;
       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--

[[Page S1136]]

       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by 300,000,000 for fiscal year 
     2004.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``180,000,000'' for fiscal 
     years 2005 through 2009.
                                 ______
                                 
  SA 2468. Mr. BYRD submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $150,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;
       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Transportation Infrastructure Finance and Innovation 
     Act.--Notwithstanding section 188(a) of title 23, United 
     States Code, the amount authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     to carry out subchapter II of chapter I of that title shall 
     be $100,000,000 for each of fiscal years 2004 through 2009.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$200,000,000''.
       (e) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2469. Mr. BOND submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, between the matter following line 6 and line 
     7, insert the following:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1815(a)), is 
     amended by adding at the end the following:

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $150,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;
       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$170,000,000''.
       (d) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2470. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which

[[Page S1137]]

was ordered to lie on the table; as follows:

       On page 677 of the Committee substitute, between the lines 
     12 and 13, insert the following:
       ``(ii) $4,821,335 shall be available to the personal rapid 
     transit system in Morgantown, West Virginia for improvements 
     to its passengers operations under section 5307;''
                                 ______
                                 
  SA 2471. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

                     TITLE __--SOLID WASTE DISPOSAL

     SEC. __01. INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
                   FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT 
                   OF CEMENT OR CONCRETE.

       (a) Amendment.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) is amended by adding at the end the 
     following new section:


  ``increased use of recovered mineral component in federally funded 
          projects involving procurement of cement or concrete

       ``Sec. 6005. (a) Definitions.--In this section:
       ``(1) Agency head.--The term `agency head' means--
       ``(A) the Secretary of Transportation; and
       ``(B) the head of each other Federal agency that on a 
     regular basis procures, or provides Federal funds to pay or 
     assist in paying the cost of procuring, material for cement 
     or concrete projects.
       ``(2) Cement or concrete project.--The term `cement or 
     concrete project' means a project for the construction or 
     maintenance of a highway or other transportation facility or 
     a Federal, State, or local government building or other 
     public facility that--
       ``(A) involves the procurement of cement or concrete; and
       ``(B) is carried out in whole or in part using Federal 
     funds.
       ``(3) Recovered mineral component.--The term `recovered 
     mineral component' means--
       ``(A) ground granulated blast furnace slag;
       ``(B) coal combustion fly ash; and
       ``(C) any other waste material or byproduct recovered or 
     diverted from solid waste that the Administrator, in 
     consultation with an agency head, determines should be 
     treated as recovered mineral component under this section for 
     use in cement or concrete projects paid for, in whole or in 
     part, by the agency head.
       ``(b) Implementation of Requirements.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator and each agency 
     head shall take such actions as are necessary to implement 
     fully all procurement requirements and incentives in effect 
     as of the date of enactment of this section (including 
     guidelines under section 6002) that provide for the use of 
     cement and concrete incorporating recovered mineral component 
     in cement or concrete projects.
       ``(2) Priority.--In carrying out paragraph (1) an agency 
     head shall give priority to achieving greater use of 
     recovered mineral component in cement or concrete projects 
     for which recovered mineral components historically have not 
     been used or have been used only minimally.
       ``(3) Conformance.--The Administrator and each agency head 
     shall carry out this subsection in accordance with section 
     6002.
       ``(c) Full Implementation Study.--
       ``(1) In general.--The Administrator, in cooperation with 
     the Secretary of Transportation and the Secretary of Energy, 
     shall conduct a study to determine the extent to which 
     current procurement requirements, when fully implemented in 
     accordance with subsection (b), may realize energy savings 
     and environmental benefits attainable with substitution of 
     recovered mineral component in cement used in cement or 
     concrete projects.
       ``(2) Matters to be addressed.--The study shall--
       ``(A) quantify the extent to which recovered mineral 
     components are being substituted for Portland cement, 
     particularly as a result of current procurement requirements, 
     and the energy savings and environmental benefits associated 
     with that substitution;
       ``(B) identify all barriers in procurement requirements to 
     greater realization of energy savings and environmental 
     benefits, including barriers resulting from exceptions from 
     current law; and
       ``(C)(i) identify potential mechanisms to achieve greater 
     substitution of recovered mineral component in types of 
     cement or concrete projects for which recovered mineral 
     components historically have not been used or have been used 
     only minimally;
       ``(ii) evaluate the feasibility of establishing guidelines 
     or standards for optimized substitution rates of recovered 
     mineral component in those cement or concrete projects; and
       ``(iii) identify any potential environmental or economic 
     effects that may result from greater substitution of 
     recovered mineral component in those cement or concrete 
     projects.
       ``(3) Report.--Not later than 30 months after the date of 
     enactment of this section, the Administrator shall submit to 
     Congress a report on the study.
       ``(d) Additional Procurement Requirements.--Unless the 
     study conducted under subsection (c) identifies any effects 
     or other problems described in subsection (c)(2)(C)(iii) that 
     warrant further review or delay, the Administrator and each 
     agency head shall, not later than 1 year after the release of 
     the report in accordance with subsection (c)(3), take 
     additional actions authorized under this Act to establish 
     procurement requirements and incentives that provide for the 
     use of cement and concrete with increased substitution of 
     recovered mineral component in the construction and 
     maintenance of cement or concrete projects, so as to--
       ``(1) realize more fully the energy savings and 
     environmental benefits associated with increased 
     substitution; and
       ``(2) eliminate barriers identified under subsection (c).
       ``(e) Effect of Section.--Nothing in this section affects 
     the requirements of section 6002 (including the guidelines 
     and specifications for implementing those requirements).''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Solid Waste Disposal Act is amended by adding after the 
     item relating to section 6004 the following new item:

``Sec. 6005. Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.''.

     SEC. __02. USE OF GRANULAR MINE TAILINGS.

       (a) Amendment.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) (as amended by section __01(a)) is 
     amended by adding at the end the following:

     ``SEC. 6006. USE OF GRANULAR MINE TAILINGS.

       ``(a) Mine Tailings.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Administrator, in 
     consultation with the Secretary of Transportation and heads 
     of other Federal agencies, shall establish criteria 
     (including an evaluation of whether to establish a numerical 
     standard for concentration of lead and other hazardous 
     substances) for the safe and environmentally protective use 
     of granular mine tailings from the Tar Creek, Oklahoma Mining 
     District, known as `chat', for--
       ``(A) cement or concrete projects; and
       ``(B) transportation construction projects (including 
     transportation construction projects involving the use of 
     asphalt) that are carried out, in whole or in part, using 
     Federal funds.
       ``(2) Requirements.--In establishing criteria under 
     paragraph (1), the Administrator shall consider--
       ``(A) the current and previous uses of granular mine 
     tailings as an aggregate for asphalt; and
       ``(B) any environmental and public health risks and 
     benefits derived from the removal, transportation, and use in 
     transportation projects of granular mine tailings.
       ``(3) Public participation.--In establishing the criteria 
     under paragraph (1), the Administrator shall solicit and 
     consider comments from the public.
       ``(4) Applicability of criteria.--On the establishment of 
     the criteria under paragraph (1), any use of the granular 
     mine tailings described in paragraph (1) in a transportation 
     project that is carried out, in whole or in part, using 
     Federal funds, shall meet the criteria established under 
     paragraph (1).
       ``(b) Effect of Sections.--Nothing in this section or 
     section 6005 affects any requirement of any law (including a 
     regulation) in effect on the date of enactment of this 
     section.''.
       (b) Conforming Amendment.--The table of contents of the 
     Solid Waste Disposal Act (42 U.S.C. prec. 6901) (as amended 
     by section __01(b)) is amended by adding at the end of the 
     items relating to subtitle F the following:

``Sec. 6006. Use of granular mine tailings.''.

                                 ______
                                 
  SA 2472. Mr. CHAFEE submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 715, strike line 1, and insert the following:

     SEC. 3044. HUMAN RESOURCE PROGRAMS.

       Section 5322 is amended--
       (1) by striking ``The Secretary of Transportation'' and 
     inserting the following:
       ``(a) In General.--The Secretary''; and
       (2) by adding at the end the following:
       ``(b) Nationwide Transit Employee Job Training Partnership 
     Program.--
       ``(1) Establishment.--The Secretary shall contract with a 
     national non-profit organization to establish a nationwide 
     transit employee job training partnership program to respond 
     to technological changes in the industry, with emphasis given 
     to maintenance.
       ``(2) Requirement.--The non-profit organization referred to 
     in paragraph (1) shall have demonstrated the capacity to 
     develop and provide career ladder training programs.
       ``(3) Allocation.--From the amounts made available under 
     section 5314(a), the Secretary shall make available not less 
     than $2,000,000 to carry out the provisions in this 
     subsection.''.

[[Page S1138]]

     SEC. 3045. INTERMODAL PASSENGER FACILITIES.

                                 ______
                                 
  SA 2473. Mr. KYL submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike title V and insert the following:

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

     SEC. 5000. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This title may be cited as the ``Highway 
     Reauthorization and Excise Tax Simplification Act of 2004''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this 
     title is as follows:

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

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

                 Subtitle A--Trust Fund Reauthorization

Sec. 5001. Extension of Highway Trust Fund and Aquatic Resources Trust 
              Fund expenditure authority and related taxes.
Sec. 5002. Full accounting of funds received by the Highway Trust Fund.
Sec. 5003. Modification of adjustments of apportionments.

                Subtitle B--Biodiesel Income Tax Credit

Sec. 5101. Biodiesel income tax credit.

                   Subtitle C--Fuel Fraud Prevention

Sec. 5200. Short title.

                       Part I--Aviation Jet Fuel

Sec. 5211. Taxation of aviation-grade kerosene.
Sec. 5212. Transfer of certain amounts from the Airport and Airway 
              Trust Fund to the Highway Trust Fund to reflect highway 
              use of jet fuel.

                           Part II--Dyed Fuel

Sec. 5221. Dye injection equipment.
Sec. 5222. Elimination of administrative review for taxable use of dyed 
              fuel. 
Sec. 5223. Penalty on untaxed chemically altered dyed fuel mixtures.
Sec. 5224. Termination of dyed diesel use by intercity buses.

       Part III--Modification of Inspection of Records Provisions

Sec. 5231. Authority to inspect on-site records.
Sec. 5232. Assessable penalty for refusal of entry.

            Part IV--Registration and Reporting Requirements

Sec. 5241. Registration of pipeline or vessel operators required for 
              exemption of bulk transfers to registered terminals or 
              refineries.
Sec. 5242. Display of registration.
Sec. 5243. Registration of persons within foreign trade zones.
Sec. 5244. Penalties for failure to register and failure to report.
Sec. 5245. Information reporting for persons claiming certain tax 
              benefits.

                            Part V--Imports

Sec. 5251. Tax at point of entry where importer not registered.
Sec. 5252. Reconciliation of on-loaded cargo to entered cargo.

                   Part VI--Miscellaneous Provisions

Sec. 5261. Tax on sale of diesel fuel whether suitable for use or not 
              in a diesel-powered vehicle or train.
Sec. 5262. Modification of ultimate vendor refund claims with respect 
              to farming.
Sec. 5263. Taxable fuel refunds for certain ultimate vendors.
Sec. 5264. Two-party exchanges.
Sec. 5265. Modifications of tax on use of certain vehicles.
Sec. 5266. Dedication of revenues from certain penalties to the Highway 
              Trust Fund.
Sec. 5267. Nonapplication of export exemption to delivery of fuel to 
              motor vehicles removed from United States.

                     Part VII--Total Accountability

Sec. 5271. Total accountability.
Sec. 5272. Excise tax reporting.
Sec. 5273. Information reporting.

               Subtitle D--Definition of Highway Vehicle

Sec. 5301. Exemption from certain excise taxes for mobile machinery.
Sec. 5302. Modification of definition of off-highway vehicle.

            Subtitle E--Excise Tax Reform and Simplification

                      Part I--Highway Excise Taxes

Sec. 5401. Dedication of gas guzzler tax to Highway Trust Fund.
Sec. 5402. Repeal certain excise taxes on rail diesel fuel and inland 
              waterway barge fuels.

                     Part II--Aquatic Excise Taxes

Sec. 5411. Elimination of Aquatic Resources Trust Fund and 
              transformation of Sport Fish Restoration Account.
Sec. 5412. Exemption of LED devices from sonar devices suitable for 
              finding fish.
Sec. 5413. Repeal of harbor maintenance tax on exports.
Sec. 5414. Cap on excise tax on certain fishing equipment.
Sec. 5415. Reduction in rate of tax on portable aerated bait 
              containers.

                     Part III--Aerial Excise Taxes

Sec. 5421. Clarification of excise tax exemptions for agricultural 
              aerial applicators and exemption for fixed-wing aircraft 
              engaged in forestry operations.
Sec. 5422. Modification of rural airport definition.
Sec. 5423. Exemption from ticket taxes for transportation provided by 
              seaplanes.
Sec. 5424. Certain sightseeing flights exempt from taxes on air 
              transportation.

                Part IV--Alcoholic Beverage Excise Taxes

Sec. 5431. Repeal of special occupational taxes on producers and 
              marketers of alcoholic beverages.
Sec. 5432. Suspension of limitation on rate of rum excise tax cover 
              over to Puerto Rico and Virgin Islands.

                       Part V--Sport Excise Taxes

Sec. 5441. Custom gunsmiths.
Sec. 5442. Modified taxation of imported archery products.
Sec. 5443. Treatment of tribal governments for purposes of Federal 
              wagering excise and occupational taxes.

                       Part VI--Other Provisions

Sec. 5451. Income tax credit for distilled spirits wholesalers and for 
              distilled spirits in control State bailment warehouses 
              for costs of carrying Federal excise taxes on bottled 
              distilled spirits.
Sec. 5452. Credit for taxpayers owning commercial power takeoff 
              vehicles.
Sec. 5453. Credit for auxiliary power units installed on diesel-powered 
              trucks.

                  Subtitle F--Miscellaneous Provisions

Sec. 5501. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 5502. National Surface Transportation Infrastructure Financing 
              Commission.
Sec. 5503. Treasury study of fuel tax compliance and interagency 
              cooperation.
Sec. 5504. Expansion of Highway Trust Fund expenditure purposes to 
              include funding for studies of supplemental or 
              alternative financing for the Highway Trust Fund.
Sec. 5505. Treasury study of highway fuels used by trucks for non-
              transportation purposes.
Sec. 5506. Delta regional transportation plan.
Sec. 5507. Treatment of employer-provided transit and van pooling 
              benefits.
Sec. 5508. Study of incentives for production of biodiesel.
Sec. 5509. Reduction of expenditures from the Highway Trust Fund.

                      Subtitle G--Revenue Offsets

     Part I--Limitation on Expensing Certain Passengers Automobiles

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

            Part II--Provision To Replenish the General Fund

Sec. 5611. Modification to corporate estimated tax requirements.

                 Subtitle A--Trust Fund Reauthorization

     SEC. 5001. EXTENSION OF HIGHWAY TRUST FUND AND AQUATIC 
                   RESOURCES TRUST FUND EXPENDITURE AUTHORITY AND 
                   RELATED TAXES.

       (a) Highway Trust Fund Expenditure Authority.--
       (1) Highway account.--Paragraph (1) of section 9503(c) 
     (relating to transfers from Highway Trust Fund for certain 
     repayments and credits) is amended--
       (A) in the matter before subparagraph (A), by striking 
     ``March 1, 2004'' and inserting ``October 1, 2009'',
       (B) by striking ``or'' at the end of subparagraph (E),
       (C) by striking the period at the end of subparagraph (F) 
     and inserting ``, or'',
       (D) by inserting after subparagraph (F), the following new 
     subparagraph:
       ``(G) authorized to be paid out of the Highway Trust Fund 
     under the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004.'', and
       (E) in the matter after subparagraph (G), as added by 
     subparagraph (D), by striking ``Surface Transportation 
     Extension Act of 2003'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004''.
       (2) Mass transit account.--Paragraph (3) of section 9503(e) 
     (relating to establishment of Mass Transit Account) is 
     amended--
       (A) in the matter before subparagraph (A), by striking 
     ``March 1, 2004'' and inserting ``October 1, 2009'',
       (B) by striking ``or'' at the end of subparagraph (C),

[[Page S1139]]

       (C) by striking the period at the end of subparagraph (D) 
     and inserting ``, or'',
       (D) by inserting after subparagraph (D), the following new 
     subparagraph:
       ``(E) the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004,'', and
       (E) in the matter after subparagraph (E), as added by 
     subparagraph (D), by striking ``Surface Transportation 
     Extension Act of 2003'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004''.
       (3) Exception to limitation on transfers.--Subparagraph (B) 
     of section 9503(b)(5) (relating to limitation on transfers to 
     Highway Trust Fund) is amended by striking ``March 1, 2004'' 
     and inserting ``October 1, 2009''.
       (b) Aquatic Resources Trust Fund Expenditure Authority.--
       (1) Sport fish restoration account.--Paragraph (2) of 
     section 9504(b) (relating to Sport Fish Restoration Account) 
     is amended by striking ``Surface Transportation Extension Act 
     of 2003'' each place it appears and inserting ``Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2004''.
       (2) Boat safety account.--Section 9504(c) (relating to 
     expenditures from Boat Safety Account) is amended--
       (A) by striking ``March 1, 2004'' and inserting ``October 
     1, 2009'', and
       (B) by striking ``Surface Transportation Extension Act of 
     2003'' and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2004''.
       (3) Exception to limitation on transfers.--Paragraph (2) of 
     section 9504(d) (relating to limitation on transfers to 
     Aquatic Resources Trust Fund) is amended by striking ``March 
     1, 2004'' and inserting ``October 1, 2009''.
       (4) Technical correction.--The last sentence of paragraph 
     (2) of section 9504(b) is amended by striking ``subparagraph 
     (B)'', and inserting ``subparagraph (C)''.
       (c) Extension of Taxes.--
       (1) In general.--The following provisions are each amended 
     by striking ``2005'' each place it appears and inserting 
     ``2009'':
       (A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax 
     on certain buses).
       (B) Section 4041(a)(2)(B) (relating to rate of tax on 
     special motor fuels).
       (C) Section 4041(m)(1)(A) (relating to certain alcohol 
     fuels produced from natural gas).
       (D) Section 4051(c) (relating to termination of tax on 
     heavy trucks and trailers).
       (E) Section 4071(d) (relating to termination of tax on 
     tires).
       (F) Section 4081(d)(1) (relating to termination of tax on 
     gasoline, diesel fuel, and kerosene).
       (G) Section 4481(e) (relating to period tax in effect).
       (H) Section 4482(c)(4) (relating to taxable period).
       (I) Section 4482(d) (relating to special rule for taxable 
     period in which termination date occurs).
       (2) Floor stocks refunds.--Section 6412(a)(1) (relating to 
     floor stocks refunds) is amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2009'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2010''.
       (d) Extension of Certain Exemptions.--The following 
     provisions are each amended by striking ``2005'' and 
     inserting ``2009'':
       (1) Section 4221(a) (relating to certain tax-free sales).
       (2) Section 4483(g) (relating to termination of exemptions 
     for highway use tax).
       (e) Extension of Deposits Into, and Certain Transfers From, 
     Trust Fund.--
       (1) In general.--Subsections (b), (c)(2), (c)(3), 
     (c)(4)(A)(i), and (c)(5)(A) of section 9503 (relating to the 
     Highway Trust Fund) are amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2009'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2010''.
       (2) Conforming amendments to land and water conservation 
     fund.--Section 201(b) of the Land and Water Conservation Fund 
     Act of 1965 (16 U.S.C. 460l-11(b)) is amended--
       (A) by striking ``2003'' and inserting ``2007'', and
       (B) by striking ``2004'' each place it appears and 
     inserting ``2008''.
       (f) Extension of Tax Benefits for Qualified Methanol and 
     Ethanol Fuel Produced From Coal.--Section 4041(b)(2) 
     (relating to qualified methanol and ethanol fuel) is 
     amended--
       (1) by striking ``2007'' in subparagraph (C)(ii) and 
     inserting ``2010'', and
       (2) by striking ``October 1, 2007'' in subparagraph (D) and 
     inserting ``January 1, 2011''.
       (g) Prohibition on Use of Highway Account for Rail 
     Projects.--Section 9503(c) (relating to transfers from 
     Highway Trust Fund for certain repayments and credits) is 
     amended by adding at the end the following new paragraph:
       ``(6) Prohibition on use of highway account for rail 
     projects.--With respect to projects beginning after the date 
     of the enactment of this paragraph, no amount shall be 
     available from the Highway Account (as defined in subsection 
     (e)(5)(B)) for any rail project.''.
       (h) Highway Trust Fund Expenditures for Highway Use Tax 
     Evasion Projects.--From amounts available in the Highway 
     Trust Fund, there is authorized to be expended such sums as 
     are necessary for highway use tax evasion projects.
       (i) Effective Date.--The amendments made by and provisions 
     of this section shall take effect on the date of the 
     enactment of this Act.

     SEC. 5002. FULL ACCOUNTING OF FUNDS RECEIVED BY THE HIGHWAY 
                   TRUST FUND.

       (a) In General.--Section 9503(c) (relating to transfers 
     from Highway Trust Fund for certain repayments and credits), 
     as amended by section 5001 of this Act, is amended by 
     striking paragraph (2) and redesignating paragraphs (3), (4), 
     (5), and (6) as paragraphs (2), (3), (4), and (5), 
     respectively.
       (b) Interest on Unexpended Balances Credited to Trust 
     Fund.--Section 9503 (relating to the Highway Trust Fund) is 
     amended by striking subsection (f).
       (c) Conforming Amendments.--
       (1) Section 9503(b)(4)(D) is amended by striking 
     ``paragraph (4)(D) or (5)(B)'' and inserting ``paragraph 
     (3)(D) or (4)(B)''.
       (2) Paragraph (2) of section 9503(c) (as redesignated by 
     subsection (a)) is amended by adding at the end the following 
     new sentence: ``The amounts payable from the Highway Trust 
     Fund under this paragraph shall be determined by taking into 
     account only the portion of the taxes which are deposited 
     into the Highway Trust Fund.''.
       (3) Section 9504(a)(2) is amended by striking ``section 
     9503(c)(4), section 9503(c)(5)'' and inserting ``section 
     9503(c)(3), section 9503(c)(4)''.
       (4) Paragraph (2) of section 9504(b), as amended by section 
     5001 of this Act, is amended by striking ``section 
     9503(c)(5)'' and inserting ``section 9503(c)(4)''.
       (5) Section 9504(e) is amended by striking ``section 
     9503(c)(4)'' and inserting ``section 9503(c)(3)''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to amounts paid 
     for which no transfer from the Highway Trust Fund has been 
     made before April 1, 2004.
       (2) Interest credited.--The amendment made by subsection 
     (b) shall take effect on the date of the enactment of this 
     Act.

     SEC. 5003. MODIFICATION OF ADJUSTMENTS OF APPORTIONMENTS.

       (a) In General.--Section 9503(d) (relating to adjustments 
     for apportionments) is amended--
       (1) by striking ``24-month'' in paragraph (1)(B) and 
     inserting ``48-month'', and
       (2) by striking ``2 years''' in the heading for paragraph 
     (3) and inserting ``4 years'''.
       (b) Measurement of Net Highway Receipts.--Section 9503(d) 
     is amended by redesignating paragraph (6) as paragraph (7) 
     and by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) Measurement of net highway receipts.--For purposes of 
     making any estimate under paragraph (1) of net highway 
     receipts for periods ending after the date specified in 
     subsection (b)(1), the Secretary shall treat--
       ``(A) each expiring provision of subsection (b) which is 
     related to appropriations or transfers to the Highway Trust 
     Fund to have been extended through the end of the 48-month 
     period referred to in paragraph (1)(B), and
       ``(B) with respect to each tax imposed under the sections 
     referred to in subsection (b)(1), the rate of such tax during 
     the 48-month period referred to in paragraph (1)(B) to be the 
     same as the rate of such tax as in effect on the date of such 
     estimate.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

                Subtitle B--Biodiesel Income Tax Credit

     SEC. 5101. BIODIESEL INCOME TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by inserting after section 40 the following new section:

     ``SEC. 40A. BIODIESEL USED AS FUEL.

       ``(a) General Rule.--For purposes of section 38, the 
     biodiesel fuels credit determined under this section for the 
     taxable year is an amount equal to the sum of--
       ``(1) the biodiesel mixture credit, plus
       ``(2) the biodiesel credit.
       ``(b) Definition of Biodiesel Mixture Credit and Biodiesel 
     Credit.--For purposes of this section--
       ``(1) Biodiesel mixture credit.--
       ``(A) In general.--The biodiesel mixture credit of any 
     taxpayer for any taxable year is 50 cents for each gallon of 
     biodiesel used by the taxpayer in the production of a 
     qualified biodiesel mixture.
       ``(B) Qualified biodiesel mixture.--The term `qualified 
     biodiesel mixture' means a mixture of biodiesel and diesel 
     fuel (as defined in section 4083(a)(3)), determined without 
     regard to any use of kerosene, which--
       ``(i) is sold by the taxpayer producing such mixture to any 
     person for use as a fuel, or
       ``(ii) is used as a fuel by the taxpayer producing such 
     mixture.
       ``(C) Sale or use must be in trade or business, etc.--
     Biodiesel used in the production of a qualified biodiesel 
     mixture shall be taken into account--
       ``(i) only if the sale or use described in subparagraph (B) 
     is in a trade or business of the taxpayer, and
       ``(ii) for the taxable year in which such sale or use 
     occurs.
       ``(D) Casual off-farm production not eligible.--No credit 
     shall be allowed under this section with respect to any 
     casual off-farm production of a qualified biodiesel mixture.
       ``(2) Biodiesel credit.--
       ``(A) In general.--The biodiesel credit of any taxpayer for 
     any taxable year is 50 cents

[[Page S1140]]

     for each gallon of biodiesel which is not in a mixture with 
     diesel fuel and which during the taxable year--
       ``(i) is used by the taxpayer as a fuel in a trade or 
     business, or
       ``(ii) is sold by the taxpayer at retail to a person and 
     placed in the fuel tank of such person's vehicle.
       ``(B) User credit not to apply to biodiesel sold at 
     retail.--No credit shall be allowed under subparagraph (A)(i) 
     with respect to any biodiesel which was sold in a retail sale 
     described in subparagraph (A)(ii).
       ``(3) Credit for agri-biodiesel.--In the case of any 
     biodiesel which is agri-biodiesel, paragraphs (1)(A) and 
     (2)(A) shall be applied by substituting `$1.00' for `50 
     cents'.
       ``(4) Certification for biodiesel.--No credit shall be 
     allowed under this section unless the taxpayer obtains a 
     certification (in such form and manner as prescribed by the 
     Secretary) from the producer or importer of the biodiesel 
     which identifies the product produced and the percentage of 
     biodiesel and agri-biodiesel in the product.
       ``(c) Coordination With Credit Against Excise Tax.--The 
     amount of the credit determined under this section with 
     respect to any biodiesel shall be properly reduced to take 
     into account any benefit provided with respect to such 
     biodiesel solely by reason of the application of section 6426 
     or 6427(e).
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Biodiesel.--The term `biodiesel' means the monoalkyl 
     esters of long chain fatty acids derived from plant or animal 
     matter which meet--
       ``(A) the registration requirements for fuels and fuel 
     additives established by the Environmental Protection Agency 
     under section 211 of the Clean Air Act (42 U.S.C. 7545), and
       ``(B) the requirements of the American Society of Testing 
     and Materials D6751.
       ``(2) Agri-biodiesel.--The term `agri-biodiesel' means 
     biodiesel derived solely from virgin oils, including esters 
     derived from virgin vegetable oils from corn, soybeans, 
     sunflower seeds, cottonseeds, canola, crambe, rapeseeds, 
     safflowers, flaxseeds, rice bran, and mustard seeds, and from 
     animal fats.
       ``(3) Mixture or biodiesel not used as a fuel, etc.--
       ``(A) Mixtures.--If--
       ``(i) any credit was determined under this section with 
     respect to biodiesel used in the production of any qualified 
     biodiesel mixture, and
       ``(ii) any person--

       ``(I) separates the biodiesel from the mixture, or

       ``(II) without separation, uses the mixture other than as a 
     fuel,

     then there is hereby imposed on such person a tax equal to 
     the product of the rate applicable under subsection (b)(1)(A) 
     and the number of gallons of such biodiesel in such mixture.
       ``(B) Biodiesel.--If--
       ``(i) any credit was determined under this section with 
     respect to the retail sale of any biodiesel, and
       ``(ii) any person mixes such biodiesel or uses such 
     biodiesel other than as a fuel,

     then there is hereby imposed on such person a tax equal to 
     the product of the rate applicable under subsection (b)(2)(A) 
     and the number of gallons of such biodiesel.
       ``(C) Applicable laws.--All provisions of law, including 
     penalties, shall, insofar as applicable and not inconsistent 
     with this section, apply in respect of any tax imposed under 
     subparagraph (A) or (B) as if such tax were imposed by 
     section 4081 and not by this chapter.
       ``(4) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(e) Termination.--This section shall not apply to any 
     sale or use after December 31, 2006.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit) is 
     amended by striking ``plus'' at the end of paragraph (14), by 
     striking the period at the end of paragraph (15) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(16) the biodiesel fuels credit determined under section 
     40A(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d) is amended by adding at the end the 
     following new paragraph:
       ``(11) No carryback of biodiesel fuels credit before 
     effective date.--No portion of the unused business credit for 
     any taxable year which is attributable to the biodiesel fuels 
     credit determined under section 40A may be carried back to a 
     taxable year ending on or before September 30, 2004.''.
       (2)(A) Section 87 is amended to read as follows:

     ``SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS.

       ``Gross income includes--
       ``(1) the amount of the alcohol fuels credit determined 
     with respect to the taxpayer for the taxable year under 
     section 40(a), and
       ``(2) the biodiesel fuels credit determined with respect to 
     the taxpayer for the taxable year under section 40A(a).''.
       (B) The item relating to section 87 in the table of 
     sections for part II of subchapter B of chapter 1 is amended 
     by striking ``fuel credit'' and inserting ``and biodiesel 
     fuels credits''.
       (3) Section 196(c) is amended by striking ``and'' at the 
     end of paragraph (9), by striking the period at the end of 
     paragraph (10) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(11) the biodiesel fuels credit determined under section 
     40A(a).''.
       (4) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding after the item 
     relating to section 40 the following new item:

``Sec. 40A. Biodiesel used as fuel.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel produced, and sold or used, after 
     September 30, 2004, in taxable years ending after such date.

                   Subtitle C--Fuel Fraud Prevention

     SEC. 5200. SHORT TITLE.

       This subtitle may be cited as the ``Fuel Fraud Prevention 
     Act of 2004''.

                       PART I--AVIATION JET FUEL

     SEC. 5211. TAXATION OF AVIATION-GRADE KEROSENE.

       (a) Rate of Tax.--
       (1) In general.--Subparagraph (A) of section 4081(a)(2) is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) in the case of aviation-grade kerosene, 21.8 cents 
     per gallon.''.
       (2) Commercial aviation.--Paragraph (2) of section 4081(a) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) Taxes imposed on fuel used in commercial aviation.--
     In the case of aviation-grade kerosene which is removed from 
     any refinery or terminal directly into the fuel tank of an 
     aircraft for use in commercial aviation, the rate of tax 
     under subparagraph (A)(iv) shall be 4.3 cents per gallon.''.
       (3) Nontaxable uses.--
       (A) In general.--Section 4082 is amended by redesignating 
     subsections (e) and (f) as subsections (f) and (g), 
     respectively, and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Aviation-Grade Kerosene.--In the case of aviation-
     grade kerosene which is exempt from the tax imposed by 
     section 4041(c) (other than by reason of a prior imposition 
     of tax) and which is removed from any refinery or terminal 
     directly into the fuel tank of an aircraft, the rate of tax 
     under section 4081(a)(2)(A)(iv) shall be zero.''.
       (B) Conforming amendments.--
       (i) Subsection (b) of section 4082 is amended by adding at 
     the end the following new flush sentence: ``The term 
     `nontaxable use' does not include the use of aviation-grade 
     kerosene in an aircraft.''.
       (ii) Section 4082(d) is amended by striking paragraph (1) 
     and by redesignating paragraphs (2) and (3) as paragraphs (1) 
     and (2), respectively.
       (4) Nonaircraft use of aviation-grade kerosene.--
       (A) In general.--Subparagraph (B) of section 4041(a)(1) is 
     amended by adding at the end the following new sentence: 
     ``This subparagraph shall not apply to aviation-grade 
     kerosene.''.
       (B) Conforming amendment.--The heading for paragraph (1) of 
     section 4041(a) is amended by inserting ``and kerosene'' 
     after ``diesel fuel''.
       (b) Commercial Aviation.--Section 4083 is amended 
     redesignating subsections (b) and (c) as subsections (c) and 
     (d), respectively, and by inserting after subsection (a) the 
     following new subsection:
       ``(b) Commercial Aviation.--For purposes of this subpart, 
     the term `commercial aviation' means any use of an aircraft 
     in a business of transporting persons or property for 
     compensation or hire by air, unless properly allocable to any 
     transportation exempt from the taxes imposed by section 4261 
     and 4271 by reason of section 4281 or 4282 or by reason of 
     section 4261(h).''.
       (c) Refunds.--
       (1) In general.--Paragraph (4) of section 6427(l) is 
     amended to read as follows:
       ``(4) Refunds for aviation-grade kerosene.--
       ``(A) No refund of certain taxes on fuel used in commercial 
     aviation.--In the case of aviation-grade kerosene used in 
     commercial aviation (as defined in section 4083(b)) (other 
     than supplies for vessels or aircraft within the meaning of 
     section 4221(d)(3)), paragraph (1) shall not apply to so much 
     of the tax imposed by section 4081 as is attributable to--
       ``(i) the Leaking Underground Storage Tank Trust Fund 
     financing rate imposed by such section, and
       ``(ii) so much of the rate of tax specified in section 
     4081(a)(2)(A)(iv) as does not exceed 4.3 cents per gallon.
       ``(B) Payment to ultimate, registered vendor.--With respect 
     to aviation-grade kerosene, if the ultimate purchaser of such 
     kerosene waives (at such time and in such form and manner as 
     the Secretary shall prescribe) the right to payment under 
     paragraph (1) and assigns such right to the ultimate vendor, 
     then the Secretary shall pay the amount which would be paid 
     under paragraph (1) to such ultimate vendor, but only if such 
     ultimate vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.
       (2) Time for filing claims.--Paragraph (4) of section 
     6427(i) is amended by striking ``subsection (l)(5)'' and 
     inserting ``paragraph (4)(B) or (5) of subsection (l)''.
       (3) Conforming amendment.--Subparagraph (B) of section 
     6427(l)(2) is amended to read as follows:
       ``(B) in the case of aviation-grade kerosene--

[[Page S1141]]

       ``(i) any use which is exempt from the tax imposed by 
     section 4041(c) other than by reason of a prior imposition of 
     tax, or
       ``(ii) any use in commercial aviation (within the meaning 
     of section 4083(b)).''.
       (d) Repeal of Prior Taxation of Aviation Fuel.--
       (1) In general.--Part III of subchapter A of chapter 32 is 
     amended by striking subpart B and by redesignating subpart C 
     as subpart B.
       (2) Conforming amendments.--
       (A) Section 4041(c) is amended to read as follows:
       ``(c) Aviation-Grade Kerosene.--
       ``(1) In general.--There is hereby imposed a tax upon 
     aviation-grade kerosene--
       ``(A) sold by any person to an owner, lessee, or other 
     operator of an aircraft for use in such aircraft, or
       ``(B) used by any person in an aircraft unless there was a 
     taxable sale of such fuel under subparagraph (A).
       ``(2) Exemption for previously taxed fuel.--No tax shall be 
     imposed by this subsection on the sale or use of any 
     aviation-grade kerosene if tax was imposed on such liquid 
     under section 4081 and the tax thereon was not credited or 
     refunded.
       ``(3) Rate of tax.--The rate of tax imposed by this 
     subsection shall be the rate of tax specified in section 
     4081(a)(2)(A)(iv) which is in effect at the time of such sale 
     or use.''.
       (B) Section 4041(d)(2) is amended by striking ``section 
     4091'' and inserting ``section 4081''.
       (C) Section 4041 is amended by striking subsection (e).
       (D) Section 4041 is amended by striking subsection (i).
       (E) Section 4041(m)(1) is amended to read as follows:
       ``(1) In general.--In the case of the sale or use of any 
     partially exempt methanol or ethanol fuel, the rate of the 
     tax imposed by subsection (a)(2) shall be--
       ``(A) after September 30, 1997, and before September 30, 
     2009--
       ``(i) in the case of fuel none of the alcohol in which 
     consists of ethanol, 9.15 cents per gallon, and
       ``(ii) in any other case, 11.3 cents per gallon, and
       ``(B) after September 30, 2009--
       ``(i) in the case of fuel none of the alcohol in which 
     consists of ethanol, 2.15 cents per gallon, and
       ``(ii) in any other case, 4.3 cents per gallon.''.
       (F) Sections 4101(a), 4103, 4221(a), and 6206 are each 
     amended by striking ``, 4081, or 4091'' and inserting ``or 
     4081''.
       (G) Section 6416(b)(2) is amended by striking ``4091 or''.
       (H) Section 6416(b)(3) is amended by striking ``or 4091'' 
     each place it appears.
       (I) Section 6416(d) is amended by striking ``or to the tax 
     imposed by section 4091 in the case of refunds described in 
     section 4091(d)''.
       (J) Section 6427(j)(1) is amended by striking ``, 4081, and 
     4091'' and inserting ``and 4081''.
       (K)(i) Section 6427(l)(1) is amended to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     subsection and in subsection (k), if any diesel fuel or 
     kerosene on which tax has been imposed by section 4041 or 
     4081 is used by any person in a nontaxable use, the Secretary 
     shall pay (without interest) to the ultimate purchaser of 
     such fuel an amount equal to the aggregate amount of tax 
     imposed on such fuel under section 4041 or 4081, as the case 
     may be, reduced by any refund paid to the ultimate vendor 
     under paragraph (4)(B).''.
       (ii) Paragraph (5)(B) of section 6427(l) is amended by 
     striking ``Paragraph (1)(A) shall not apply to kerosene'' and 
     inserting ``Paragraph (1) shall not apply to kerosene (other 
     than aviation-grade kerosene)''.
       (L) Subparagraph (B) of section 6724(d)(1) is amended by 
     striking clause (xv) and by redesignating the succeeding 
     clauses accordingly.
       (M) Paragraph (2) of section 6724(d) is amended by striking 
     subparagraph (W) and by redesignating the succeeding 
     subparagraphs accordingly.
       (N) Paragraph (1) of section 9502(b) is amended by adding 
     ``and'' at the end of subparagraph (B) and by striking 
     subparagraphs (C) and (D) and inserting the following new 
     subparagraph:
       ``(C) section 4081 with respect to aviation gasoline and 
     aviation-grade kerosene, and''.
       (O) The last sentence of section 9502(b) is amended to read 
     as follows:

     ``There shall not be taken into account under paragraph (1) 
     so much of the taxes imposed by section 4081 as are 
     determined at the rate specified in section 4081(a)(2)(B).''.
       (P) Subsection (b) of section 9508 is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) and (5) as 
     paragraphs (3) and (4), respectively.
       (Q) Section 9508(c)(2)(A) is amended by striking ``sections 
     4081 and 4091'' and inserting ``section 4081''.
       (R) The table of subparts for part III of subchapter A of 
     chapter 32 is amended to read as follows:

``Subpart A. Motor and aviation fuels.
``Subpart B. Special provisions applicable to fuels tax.''.
       (S) The heading for subpart A of part III of subchapter A 
     of chapter 32 is amended to read as follows:

                ``Subpart A--Motor and Aviation Fuels''.

       (T) The heading for subpart B of part III of subchapter A 
     of chapter 32 is amended to read as follows:

       ``Subpart B--Special Provisions Applicable to Fuels Tax''.

       (g) Other Amendments.--
       (1) Section 4081(c) is amended by adding at the end the 
     following new flush sentence:

     ``In the case of any taxable fuel which is aviation-grade 
     keorsene, this subsection shall not apply and the rules of 
     section 4091(c) (as in effect on the day before the date of 
     the enactment of the Fuel Fraud Prevention Act of 2004) shall 
     apply.''.
       (2) For purposes of the Internal Revenue Code of 1986, any 
     reference to section 4091(c) shall be treated as a reference 
     to the rules of such section as in effect on the date before 
     the date of the enactment of this Act.
       (f) Effective Date.--The amendments made by this section 
     shall apply to aviation-grade kerosene removed, entered, or 
     sold after September 30, 2004.
       (g) Floor Stocks Tax.--
       (1) In general.--There is hereby imposed on aviation-grade 
     kerosene held on October 1, 2004, by any person a tax equal 
     to--
       (A) the tax which would have been imposed before such date 
     on such kerosene had the amendments made by this section been 
     in effect at all times before such date, reduced by
       (B) the tax imposed before such date under section 4091 of 
     the Internal Revenue Code of 1986, as in effect on the day 
     before the date of the enactment of this Act.
       (2) Liability for tax and method of payment.--
       (A) Liability for tax.--The person holding the kerosene on 
     October 1, 2004, to which the tax imposed by paragraph (1) 
     applies shall be liable for such tax.
       (B) Method and time for payment.--The tax imposed by 
     paragraph (1) shall be paid at such time and in such manner 
     as the Secretary of the Treasury shall prescribe, including 
     the nonapplication of such tax on de minimis amounts of 
     kerosene.
       (3) Transfer of floor stock tax revenues to trust funds.--
     For purposes of determining the amount transferred to any 
     trust fund, the tax imposed by this subsection shall be 
     treated as imposed by section 4081 of the Internal Revenue 
     Code of 1986--
       (A) at the Leaking Underground Storage Tank Trust Fund 
     financing rate under such section to the extent of 0.1 cents 
     per gallon, and
       (B) at the rate under section 4081(a)(2)(A)(iv) to the 
     extent of the remainder.
       (4) Held by a person.--For purposes of this section, 
     kerosene shall be considered as held by a person if title 
     thereto has passed to such person (whether or not delivery to 
     the person has been made).
       (5) Other laws applicable.--All provisions of law, 
     including penalties, applicable with respect to the tax 
     imposed by section 4081 of such Code shall, insofar as 
     applicable and not inconsistent with the provisions of this 
     subsection, apply with respect to the floor stock tax imposed 
     by paragraph (1) to the same extent as if such tax were 
     imposed by such section.

     SEC. 5212. TRANSFER OF CERTAIN AMOUNTS FROM THE AIRPORT AND 
                   AIRWAY TRUST FUND TO THE HIGHWAY TRUST FUND TO 
                   REFLECT HIGHWAY USE OF JET FUEL.

       (a) In General.--Section 9502(d) is amended by adding at 
     the end the following new paragraph:
       ``(7) Transfers from the trust fund to the highway trust 
     fund to reflect highway use of jet fuel.--
       ``(A) In general.--The Secretary shall pay from the Airport 
     and Airway Trust Fund into the Highway Trust Fund--
       ``(i) $395,000,000 in fiscal year 2005,
       ``(ii) $425,000,000 in fiscal year 2006,
       ``(iii) $429,000,000 in fiscal year 2007,
       ``(iv) $432,000,000 in fiscal year 2008, and
       ``(v) $435,000,000 in fiscal year 2009.
       ``(B) Amounts transferred to mass transit account.--The 
     Secretary shall transfer 11 percent of the amounts paid into 
     the Highway Trust Fund under subparagraph (A) to the Mass 
     Transit Account established under section 9503(e).''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 9503 is amended--
       (A) by striking ``appropriated or credited'' and inserting 
     ``paid, appropriated, or credited'', and
       (B) by striking ``or section 9602(b)'' and inserting ``, 
     section 9502(d)(7), or section 9602(b)''.
       (2) Subsection (e)(1) of section 9503 is amended by 
     striking ``or section 9602(b)'' and inserting ``, section 
     9502(d)(7), or section 9602(b)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                           PART II--DYED FUEL

     SEC. 5221. DYE INJECTION EQUIPMENT.

       (a) In General.--Section 4082(a)(2) (relating to exemptions 
     for diesel fuel and kerosene) is amended by inserting ``by 
     mechanical injection'' after ``indelibly dyed''.
       (b) Dye Injector Security.--Not later than June 30, 2004, 
     the Secretary of the Treasury shall issue regulations 
     regarding mechanical dye injection systems described in the 
     amendment made by subsection (a), and such regulations shall 
     include standards for making such systems tamper resistant.
       (c) Penalty for Tampering With or Failing To Maintain 
     Security Requirements for Mechanical Dye Injection Systems.--

[[Page S1142]]

       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding after 
     section 6715 the following new section:

     ``SEC. 6715A. TAMPERING WITH OR FAILING TO MAINTAIN SECURITY 
                   REQUIREMENTS FOR MECHANICAL DYE INJECTION 
                   SYSTEMS.

       ``(a) Imposition of Penalty--
       ``(1) Tampering.--If any person tampers with a mechanical 
     dye injection system used to indelibly dye fuel for purposes 
     of section 4082, then such person shall pay a penalty in 
     addition to the tax (if any).
       ``(2) Failure to maintain security requirements.--If any 
     operator of a mechanical dye injection system used to 
     indelibly dye fuel for purposes of section 4082 fails to 
     maintain the security standards for such system as 
     established by the Secretary, then such operator shall pay a 
     penalty.
       ``(b) Amount of Penalty.--The amount of the penalty under 
     subsection (a) shall be--
       ``(1) for each violation described in paragraph (1), the 
     greater of--
       ``(A) $25,000, or
       ``(B) $10 for each gallon of fuel involved, and
       ``(2) for each--
       ``(A) failure to maintain security standards described in 
     paragraph (2), $1,000, and
       ``(B) failure to correct a violation described in paragraph 
     (2), $1,000 per day for each day after which such violation 
     was discovered or such person should have reasonably known of 
     such violation.
       ``(c) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by adding after the 
     item related to section 6715 the following new item:

``Sec. 6715A. Tampering with or failing to maintain security 
              requirements for mechanical dye injection systems.''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (c) shall take effect 180 days after the date on which 
     the Secretary issues the regulations described in subsection 
     (b).

     SEC. 5222. ELIMINATION OF ADMINISTRATIVE REVIEW FOR TAXABLE 
                   USE OF DYED FUEL.

       (a) In General.--Section 6715 is amended by inserting at 
     the end the following new subsection:
       ``(e) No Administrative Appeal for Third and Subsequent 
     Violations.--In the case of any person who is found to be 
     subject to the penalty under this section after a chemical 
     analysis of such fuel and who has been penalized under this 
     section at least twice after the date of the enactment of 
     this subsection, no administrative appeal or review shall be 
     allowed with respect to such finding except in the case of a 
     claim regarding--
       ``(1) fraud or mistake in the chemical analysis, or
       ``(2) mathematical calculation of the amount of the 
     penalty.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after the date of the 
     enactment of this Act.

     SEC. 5223. PENALTY ON UNTAXED CHEMICALLY ALTERED DYED FUEL 
                   MIXTURES.

       (a) In General.--Section 6715(a) (relating to dyed fuel 
     sold for use or used in taxable use, etc.) is amended by 
     striking ``or'' in paragraph (2), by inserting ``or'' at the 
     end of paragraph (3), and by inserting after paragraph (3) 
     the following new paragraph:
       ``(4) any person who has knowledge that a dyed fuel which 
     has been altered as described in paragraph (3) sells or holds 
     for sale such fuel for any use which the person knows or has 
     reason to know is not a nontaxable use of such fuel,''.
       (b) Conforming Amendment.--Section 6715(a)(3) is amended by 
     striking ``alters, or attempts to alter,'' and inserting 
     ``alters, chemically or otherwise, or attempts to so 
     alter,''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5224. TERMINATION OF DYED DIESEL USE BY INTERCITY BUSES.

       (a) In General.--Paragraph (3) of section 4082(b) (relating 
     to nontaxable use) is amended to read as follows:
       ``(3) any use described in section 
     4041(a)(1)(C)(iii)(II).''.
       (b) Ultimate Vendor Refund.--Subsection (b) of section 6427 
     is amended by adding at the end the following new paragraph:
       ``(4) Refunds for use of diesel fuel in certain intercity 
     buses.--
       ``(A) In general.--With respect to any fuel to which 
     paragraph (2)(A) applies, if the ultimate purchaser of such 
     fuel waives (at such time and in such form and manner as the 
     Secretary shall prescribe) the right to payment under 
     paragraph (1) and assigns such right to the ultimate vendor, 
     then the Secretary shall pay the amount which would be paid 
     under paragraph (1) to such ultimate vendor, but only if such 
     ultimate vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).
       ``(B) Credit cards.--For purposes of this paragraph, if the 
     sale of such fuel is made by means of a credit card, the 
     person extending credit to the ultimate purchaser shall be 
     deemed to be the ultimate vendor.''.
       (c) Payment of Refunds.--Subparagraph (A) of section 
     6427(i)(4), as amended by section 5211 of this Act, is 
     amended by inserting ``subsections (b)(4) and'' after ``filed 
     under''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel sold after September 30, 2004.

       PART III--MODIFICATION OF INSPECTION OF RECORDS PROVISIONS

     SEC. 5231. AUTHORITY TO INSPECT ON-SITE RECORDS.

       (a) In General.--Section 4083(d)(1)(A) (relating to 
     administrative authority), as amended by section 5211 of this 
     Act, is amended by striking ``and'' at the end of clause (i) 
     and by inserting after clause (ii) the following new clause:
       ``(iii) inspecting any books and records and any shipping 
     papers pertaining to such fuel, and''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5232. ASSESSABLE PENALTY FOR REFUSAL OF ENTRY.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5221 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6717. REFUSAL OF ENTRY.

       ``(a) In General.--In addition to any other penalty 
     provided by law, any person who refuses to admit entry or 
     refuses to permit any other action by the Secretary 
     authorized by section 4083(d)(1) shall pay a penalty of 
     $1,000 for such refusal.
       ``(b) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (b) Conforming Amendments.--
       (1) Section 4083(d)(3), as amended by section 5211 of this 
     Act, is amended--
       (A) by striking ``entry.--The penalty'' and inserting: 
     ``entry.--
       ``(A) Forfeiture.--The penalty'', and
       (B) by adding at the end the following new subparagraph:
       ``(B) Assessable penalty.--For additional assessable 
     penalty for the refusal to admit entry or other refusal to 
     permit an action by the Secretary authorized by paragraph 
     (1), see section 6717.''.
       (2) The table of sections for part I of subchapter B of 
     chapter 68, as amended by section 5221 of this Act, is 
     amended by adding at the end the following new item:

``Sec. 6717. Refusal of entry.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

            PART IV--REGISTRATION AND REPORTING REQUIREMENTS

     SEC. 5241. REGISTRATION OF PIPELINE OR VESSEL OPERATORS 
                   REQUIRED FOR EXEMPTION OF BULK TRANSFERS TO 
                   REGISTERED TERMINALS OR REFINERIES.

       (a) In General.--Section 4081(a)(1)(B) (relating to 
     exemption for bulk transfers to registered terminals or 
     refineries) is amended--
       (1) by inserting ``by pipeline or vessel'' after 
     ``transferred in bulk'', and
       (2) by inserting ``, the operator of such pipeline or 
     vessel,'' after ``the taxable fuel''.
       (b) Civil Penalty for Carrying Taxable Fuels by 
     Nonregistered Pipelines or Vessels.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5232 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6718. CARRYING TAXABLE FUELS BY NONREGISTERED 
                   PIPELINES OR VESSELS.

       ``(a) Imposition of Penalty.--If any person knowingly 
     transfers any taxable fuel (as defined in section 4083(a)(1)) 
     in bulk pursuant to section 4081(a)(1)(B) to an unregistered, 
     such person shall pay a penalty in addition to the tax (if 
     any).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amount of the penalty under subsection (a) on each act shall 
     be an amount equal to the greater of--
       ``(A) $10,000, or
       ``(B) $1 per gallon.
       ``(2) Multiple violations.--In determining the penalty 
     under subsection (a) on any person, paragraph (1) shall be 
     applied by increasing the amount in paragraph (1) by the 
     product of such amount and the number of prior penalties (if 
     any) imposed by this section on such person (or a related 
     person or

[[Page S1143]]

     any predecessor of such person or related person).
       ``(c) Joint and Several Liability.--
       ``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       ``(2) Affiliated groups.--If a business entity described in 
     paragraph (1) is part of an affiliated group (as defined in 
     section 1504(a)), the parent corporation of such entity shall 
     be jointly and severally liable with such entity for the 
     penalty imposed under this section.
       ``(d) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5232 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6718. Carrying taxable fuels by nonregistered pipelines or 
              vessels.''.
       (c) Publication of Registered Persons.--Not later than June 
     30, 2004, the Secretary of the Treasury shall publish a list 
     of persons required to be registered under section 4101 of 
     the Internal Revenue Code of 1986.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2004.

     SEC. 5242. DISPLAY OF REGISTRATION.

       (a) In General.--Subsection (a) of section 4101 (relating 
     to registration) is amended--
       (1) by striking ``Every'' and inserting the following:
       ``(1) In general.--Every'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Display of registration.--Every operator of a vessel 
     required by the Secretary to register under this section 
     shall display proof of registration through an electronic 
     identification device prescribed by the Secretary on each 
     vessel used by such operator to transport any taxable 
     fuel.''.
       (b) Civil Penalty for Failure to Display Registration.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5241 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6719. FAILURE TO DISPLAY REGISTRATION OF VESSEL.

       ``(a) Failure to Display Registration.--Every operator of a 
     vessel who fails to display proof of registration pursuant to 
     section 4101(a)(2) shall pay a penalty of $500 for each such 
     failure. With respect to any vessel, only one penalty shall 
     be imposed by this section during any calendar month.
       ``(b) Multiple Violations.--In determining the penalty 
     under subsection (a) on any person, subsection (a) shall be 
     applied by increasing the amount in subsection (a) by the 
     product of such amount and the number of prior penalties 
     (if any) imposed by this section on such person (or a 
     related person or any predecessor of such person or 
     related person).
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5241 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6719. Failure to display registration of vessel.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5243. REGISTRATION OF PERSONS WITHIN FOREIGN TRADE 
                   ZONES, ETC..

       (a) In General.--Section 4101(a), as amended by section 
     5242 of this Act, is amended by redesignating paragraph (2) 
     as paragraph (3), and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Registration of persons within foreign trade zones, 
     etc..--The Secretary shall require registration by any person 
     which--
       ``(A) operates a terminal or refinery within a foreign 
     trade zone or within a customs bonded storage facility, or
       ``(B) holds an inventory position with respect to a taxable 
     fuel in such a terminal.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5244. PENALTIES FOR FAILURE TO REGISTER AND FAILURE TO 
                   REPORT.

       (a) Increased Penalty.--Subsection (a) of section 7272 
     (relating to penalty for failure to register) is amended by 
     inserting ``($10,000 in the case of a failure to register 
     under section 4101)'' after ``$50''.
       (b) Increased Criminal Penalty.--Section 7232 (relating to 
     failure to register under section 4101, false representations 
     of registration status, etc.) is amended by striking 
     ``$5,000'' and inserting ``$10,000''.
       (c) Assessable Penalty for Failure to Register.--
       (1) In general.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties), as amended by section 
     5242 of this Act, is amended by adding at the end the 
     following new section:

     ``SEC. 6720. FAILURE TO REGISTER.

       ``(a) Failure to Register.--Every person who is required to 
     register under section 4101 and fails to do so shall pay a 
     penalty in addition to the tax (if any).
       ``(b) Amount of Penalty.--The amount of the penalty under 
     subsection (a) shall be--
       ``(1) $10,000 for each initial failure to register, and
       ``(2) $1,000 for each day thereafter such person fails to 
     register.
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part I 
     of subchapter B of chapter 68, as amended by section 5242 of 
     this Act, is amended by adding at the end the following new 
     item:

``Sec. 6720. Failure to register.''.
       (d) Assessable Penalty for Failure to Report.--
       (1) In general.--Part II of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding at 
     the end the following new section:

     ``SEC. 6725. FAILURE TO REPORT INFORMATION UNDER SECTION 
                   4101.

       ``(a) In General.--In the case of each failure described in 
     subsection (b) by any person with respect to a vessel or 
     facility, such person shall pay a penalty of $10,000 in 
     addition to the tax (if any).
       ``(b) Failures Subject to Penalty.--For purposes of 
     subsection (a), the failures described in this subsection 
     are--
       ``(1) any failure to make a report under section 4101(d) on 
     or before the date prescribed therefor, and
       ``(2) any failure to include all of the information 
     required to be shown on such report or the inclusion of 
     incorrect information.
       ``(c) Reasonable Cause Exception.--No penalty shall be 
     imposed under this section with respect to any failure if it 
     is shown that such failure is due to reasonable cause.''.
       (2) Clerical amendment.--The table of sections for part II 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6725. Failure to report information under section 4101.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to failures pending or occurring after September 
     30, 2004.

     SEC. 5245. INFORMATION REPORTING FOR PERSONS CLAIMING CERTAIN 
                   TAX BENEFITS.

       (a) In General.--Subpart C of part III of subchapter A of 
     chapter 32 is amended by adding at the end the following new 
     section:

     ``SEC. 4104. INFORMATION REPORTING FOR PERSONS CLAIMING 
                   CERTAIN TAX BENEFITS.

       ``(a) In General.--The Secretary shall require any person 
     claiming tax benefits--
       ``(1) under the provisions of section 34, 40, and 40A to 
     file a return at the time such person claims such benefits 
     (in such manner as the Secretary may prescribe), and
       ``(2) under the provisions of section 4041(b)(2), 6426, or 
     6427(e) to file a monthly return (in such manner as the 
     Secretary may prescribe).
       ``(b) Contents of Return.--Any return filed under this 
     section shall provide such information relating to such 
     benefits and the coordination of such benefits as the 
     Secretary may require to ensure the proper administration and 
     use of such benefits.
       ``(c) Enforcement.--With respect to any person described in 
     subsection (a) and subject to registration requirements under 
     this title, rules similar to rules of section 4222(c) shall 
     apply with respect to any requirement under this section.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 32 is 
     amended by adding at the end the following new item:

``Sec. 4104. Information reporting for persons claiming certain tax 
              benefits.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                            PART V--IMPORTS

     SEC. 5251. TAX AT POINT OF ENTRY WHERE IMPORTER NOT 
                   REGISTERED.

       (a) Tax at Point of Entry Where Importer Not Registered.--
       (1) In general.--Subpart C of part III of subchapter A of 
     chapter 31, as amended by section 5245 of this Act, is 
     amended by adding at the end the following new section:

     ``SEC. 4105. TAX AT ENTRY WHERE IMPORTER NOT REGISTERED.

       ``(a) In General.--Any tax imposed under this part on any 
     person not registered under section 4101 for the entry of a 
     fuel into the United States shall be imposed at the time and 
     point of entry.
       ``(b) Enforcement of Assessment.--If any person liable for 
     any tax described under subsection (a) has not paid the tax 
     or posted a bond, the Secretary may--
       ``(1) seize the fuel on which the tax is due, or
       ``(2) detain any vehicle transporting such fuel,
     until such tax is paid or such bond is filed.
       ``(c) Levy of Fuel.--If no tax has been paid or no bond has 
     been filed within 5 days from the date the Secretary seized 
     fuel pursuant to subsection (b), the Secretary may sell such 
     fuel as provided under section 6336.''.
       (2) Conforming amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 31 of the 
     Internal Revenue Code of 1986, as amended by section 5245 of 
     this Act, is amended by adding after the last item the 
     following new item:


[[Page S1144]]


``Sec. 4105. Tax at entry where importer not registered.''.
       (b) Denial of Entry Where Tax Not Paid.--The Secretary of 
     Homeland Security is authorized to deny entry into the United 
     States of any shipment of a fuel which is taxable under 
     section 4081 of the Internal Revenue Code of 1986 if the 
     person entering such shipment fails to pay the tax imposed 
     under such section or post a bond in accordance with the 
     provisions of section 4105 of such Code.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5252. RECONCILIATION OF ON-LOADED CARGO TO ENTERED 
                   CARGO.

       (a) In General.--Subsection (a) of section 343 of the Trade 
     Act of 2002 is amended by inserting at the end the following 
     new paragraph:
       ``(4) In General.--Subject to paragraphs (2) and (3), not 
     later than 1 year after the enactment of this paragraph, the 
     Secretary of Homeland Security, together with the Secretary 
     of the Treasury, shall promulgate regulations providing for 
     the transmission to the Internal Revenue Service, through an 
     electronic data interchange system, of information pertaining 
     to cargo of taxable fuels (as defined in section 4083 of the 
     Internal Revenue Code of 1986) destined for importation into 
     the United States prior to such importation.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

                   PART VI--MISCELLANEOUS PROVISIONS

     SEC. 5261. TAX ON SALE OF DIESEL FUEL WHETHER SUITABLE FOR 
                   USE OR NOT IN A DIESEL-POWERED VEHICLE OR 
                   TRAIN.

       (a) In General.--Section 4083(a)(3) is amended--
       (1) by striking ``The term'' and inserting the following:
       ``(A) In general.--The term'', and
       (2) by inserting at the end the following new subparagraph:
       ``(B) Liquid sold as diesel fuel.--The term `diesel fuel' 
     includes any liquid which is sold as or offered for sale as a 
     fuel in a diesel-powered highway vehicle or a diesel-powered 
     train.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5262. MODIFICATION OF ULTIMATE VENDOR REFUND CLAIMS WITH 
                   RESPECT TO FARMING.

       (a) In General.--
       (1) Refunds.--Section 6427(l) is amended by adding at the 
     end the following new paragraph:
       ``(6) Registered vendors permitted to administer certain 
     claims for refund of diesel fuel and kerosene sold to 
     farmers.--
       ``(A) In general.--In the case of diesel fuel or kerosene 
     used on a farm for farming purposes (within the meaning of 
     section 6420(c)), paragraph (1) shall not apply to the 
     aggregate amount of such diesel fuel or kerosene if such 
     amount does not exceed 500 gallons (as determined under 
     subsection (i)(5)(A)(iii)).
       ``(B) Payment to ultimate vendor.--The amount which would 
     (but for subparagraph (A)) have been paid under paragraph (1) 
     with respect to any fuel shall be paid to the ultimate vendor 
     of such fuel, if such vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.
       (2) Filing of claims.--Section 6427(i) is amended by 
     inserting at the end the following new paragraph:
       ``(5) Special rule for vendor refunds with respect to 
     farmers.--
       ``(A) In general.--A claim may be filed under subsection 
     (l)(6) by any person with respect to fuel sold by such person 
     for any period--
       ``(i) for which $200 or more ($100 or more in the case of 
     kerosene) is payable under subsection (l)(6),
       ``(ii) which is not less than 1 week, and
       ``(iii) which is for not more than 500 gallons for each 
     farmer for which there is a claim.
     Notwithstanding subsection (l)(1), paragraph (3)(B) shall 
     apply to claims filed under the preceding sentence.
       ``(B) Time for filing claim.--No claim filed under this 
     paragraph shall be allowed unless filed on or before the last 
     day of the first quarter following the earliest quarter 
     included in the claim.''.
       (3) Conforming amendments.--
       (A) Section 6427(l)(5)(A) is amended to read as follows:
       ``(A) In general.--Paragraph (1) shall not apply to diesel 
     fuel or kerosene used by a State or local government.''.
       (B) The heading for section 6427(l)(5) is amended by 
     striking ``farmers and''.
       (b) Section 6427(i)(3) is amended--
       (1) by adding at the end of subparagraph (A) the following 
     new flush sentence:
     ``In the case of an electronic claim, this subparagraph shall 
     be applied without regard to clause (i).'', and
       (2) by striking ``20 days of the date of the filing of such 
     claim'' in subparagraph (B) and inserting ``45 days of the 
     date of the filing of such claim (20 days in the case of an 
     electronic claim)'', and
       (c) Effective Date.--The amendment made by this section 
     shall apply to fuels sold for nontaxable use after the date 
     of the enactment of this Act.

     SEC. 5263. TAXABLE FUEL REFUNDS FOR CERTAIN ULTIMATE VENDORS.

       (a) In General.--Paragraph (4) of section 6416(a) (relating 
     to abatements, credits, and refunds) is amended to read as 
     follows:
       ``(4) Registered ultimate vendor to administer credits and 
     refunds of gasoline tax.--
       ``(A) In general.--For purposes of this subsection, if an 
     ultimate vendor purchases any gasoline on which tax imposed 
     by section 4081 has been paid and sells such gasoline to an 
     ultimate purchaser described in subparagraph (C) or (D) of 
     subsection (b)(2) (and such gasoline is for a use described 
     in such subparagraph), such ultimate vendor shall be treated 
     as the person (and the only person) who paid such tax, but 
     only if such ultimate vendor is registered under section 
     4101. For purposes of this subparagraph, if the sale of 
     gasoline is made by means of a credit card, the person 
     extending the credit to the ultimate purchaser shall be 
     deemed to be the ultimate vendor.
       ``(B) Timing of claims.--The procedure and timing of any 
     claim under subparagraph (A) shall be the same as for claims 
     under section 6427(i)(4), except that the rules of section 
     6427(i)(3)(B) regarding electronic claims shall not apply 
     unless the ultimate vendor has certified to the Secretary for 
     the most recent quarter of the taxable year that all ultimate 
     purchasers of the vendor are certified and entitled to a 
     refund under subparagraph (C) or (D) of subsection (b)(2).''.
       (b) Credit Card Purchases of Diesel Fuel or Kerosene by 
     State and Local Governments.--Section 6427(l)(5)(C) (relating 
     to nontaxable uses of diesel fuel, kerosene, and aviation 
     fuel), as amended by section 5252 of this Act, is amended by 
     adding at the end the following new sentence: ``For purposes 
     of this subparagraph, if the sale of diesel fuel or kerosene 
     is made by means of a credit card, the person extending the 
     credit to the ultimate purchaser shall be deemed to be the 
     ultimate vendor.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5264. TWO-PARTY EXCHANGES.

       (a) In General.--Subpart C of part III of subchapter A of 
     chapter 32, as amended by section 5251 of this Act, is 
     amended by adding at the end the following new section:

     ``SEC. 4106. TWO-PARTY EXCHANGES.

       ``(a) In General.--In a two-party exchange, the delivering 
     person shall not be liable for the tax imposed under of 
     section 4081(a)(1)(A)(ii).
       ``(b) Two-Party Exchange.--The term `two-party exchange' 
     means a transaction, other than a sale, in which taxable fuel 
     is transferred from a delivering person registered under 
     section 4101 as a taxable fuel registrant to a receiving 
     person who is so registered where all of the following occur:
       ``(1) The transaction includes a transfer from the 
     delivering person, who holds the inventory position for 
     taxable fuel in the terminal as reflected in the records of 
     the terminal operator.
       ``(2) The exchange transaction occurs before or 
     contemporaneous with completion of removal across the rack 
     from the terminal by the receiving person.
       ``(3) The terminal operator in its books and records treats 
     the receiving person as the person that removes the product 
     across the terminal rack for purposes of reporting the 
     transaction to the Secretary.
       ``(4) The transaction is the subject of a written 
     contract.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart C of part III of subchapter A of chapter 32, as 
     amended by section 5251 of this Act, is amended by adding 
     after the last item the following new item:

``Sec. 4106. Two-party exchanges.''.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5265. MODIFICATIONS OF TAX ON USE OF CERTAIN VEHICLES.

       (a) No Proration of Tax Unless Vehicle Is Destroyed or 
     Stolen.--
       (1) In general.--Section 4481(c) (relating to proration of 
     tax) is amended to read as follows:
       ``(c) Proration of Tax Where Vehicle Sold, Destroyed, or 
     Stolen.--
       ``(1) In general.--If in any taxable period a highway motor 
     vehicle is sold, destroyed, or stolen before the first day of 
     the last month in such period and not subsequently used 
     during such taxable period, the tax shall be reckoned 
     proportionately from the first day of the month in such 
     period in which the first use of such highway motor vehicle 
     occurs to and including the last day of the month in which 
     such highway motor vehicle was sold, destroyed, or stolen.
       ``(2) Destroyed.--For purposes of paragraph (1), a highway 
     motor vehicle is destroyed if such vehicle is damaged by 
     reason of an accident or other casualty to such an extent 
     that it is not economic to rebuild.''.
       (2) Conforming amendments.--
       (A) Section 6156 (relating to installment payment of tax on 
     use of highway motor vehicles) is repealed.
       (B) The table of sections for subchapter A of chapter 62 is 
     amended by striking the item relating to section 6156.
       (b) Display of Tax Certificate.--Paragraph (2) of section 
     4481(d) (relating to one tax liability for period) is amended 
     to read as follows:
       ``(2) Display of tax certificate.--Every taxpayer which 
     pays the tax imposed under this section with respect to a 
     highway motor

[[Page S1145]]

     vehicle shall, not later than 1 month after the due date of 
     the return of tax with respect to each taxable period, 
     receive and display on such vehicle an electronic 
     identification device prescribed by the Secretary.''.
       (c) Electronic Filing.--Section 4481, as amended by section 
     5001 of this Act, is amended by redesignating subsection (e) 
     as subsection (f) and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Electronic Filing.--Any taxpayer who files a return 
     under this section with respect to 25 or more vehicles for 
     any taxable period shall file such return electronically.''.
       (d) Repeal of Reduction in Tax For Certain Trucks.--Section 
     4483 of the Internal Revenue Code of 1986 is amended by 
     striking subsection (f).
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable 
     periods beginning after the date of the enactment of this 
     Act.
       (2) Subsection (b).--The amendment made by subsection (b) 
     shall take effect on October 1, 2005.

     SEC. 5266. DEDICATION OF REVENUES FROM CERTAIN PENALTIES TO 
                   THE HIGHWAY TRUST FUND.

       (a) In General.--Subsection (b) of section 9503 (relating 
     to transfer to Highway Trust Fund of amounts equivalent to 
     certain taxes), as amended by section 5001 of this Act, is 
     amended by redesignating paragraph (5) as paragraph (6) and 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Certain penalties.--There are hereby appropriated to 
     the Highway Trust Fund amounts equivalent to the penalties 
     assessed under sections 6715, 6715A, 6717, 6718, 6719, 6720, 
     6725, 7232, and 7272 (but only with regard to penalties under 
     such section related to failure to register under section 
     4101).''.
       (b) Conforming Amendments.--
       (1) The heading of subsection (b) of section 9503 is 
     amended by inserting ``and Penalties'' after ``Taxes''.
       (2) The heading of paragraph (1) of section 9503(b) is 
     amended by striking ``In general'' and inserting ``Certain 
     taxes''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to penalties assessed after October 1, 2004.

     SEC. 5267. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF 
                   FUEL TO MOTOR VEHICLES REMOVED FROM UNITED 
                   STATES.

       (a) In General.--Section 4221(d)(2) (defining export) is 
     amended by adding at the end the following new sentence: 
     ``Such term does not include the delivery of a taxable fuel 
     (as defined in section 4083(a)(1)) into a fuel tank of a 
     motor vehicle which is shipped or driven out of the United 
     States.''.
       (b) Conforming Amendments.--
       (1) Section 4041(g) (relating to other exemptions) is 
     amended by adding at the end the following new sentence: 
     ``Paragraph (3) shall not apply to the sale for delivery of a 
     liquid into a fuel tank of a motor vehicle which is shipped 
     or driven out of the United States.''.
       (2) Clause (iv) of section 4081(a)(1)(A) (relating to tax 
     on removal, entry, or sale) is amended by inserting ``or at a 
     duty-free sales enterprise (as defined in section 555(b)(8) 
     of the Tariff Act of 1930)'' after ``section 4101''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales or deliveries made after the date of the 
     enactment of this Act.

                     PART VII--TOTAL ACCOUNTABILITY

     SEC. 5271. TOTAL ACCOUNTABILITY.

       (a) Taxation of Reportable Liquids.--
       (1) In general.--Section 4081(a), as amended by this Act, 
     is amended--
       (A) by inserting ``or reportable liquid'' after ``taxable 
     fuel'' each place it appears, and
       (B) by inserting ``such liquid'' after ``such fuel'' in 
     paragraph (1)(A)(iv).
       (2) Rate of tax.--Subparagraph (A) of section 4081(a)(2), 
     as amended by section 5211 of this Act, is amended by 
     striking ``and'' at the end of clause (iii), by striking the 
     period at the end of clause (iv) and inserting ``, and'', and 
     by adding at the end the following new clause:
       ``(v) in the case of reportable liquids, the rate 
     determined under section 4083(c)(2).''.
       (3) Exemption.--Section 4081(a)(1) is amended by adding at 
     the end the following new subparagraph:
       ``(C) Exemption for registered transfers of reportable 
     liquids.--The tax imposed by this paragraph shall not apply 
     to any removal, entry, or sale of a reportable liquid if--
       ``(i) such removal, entry, or sale is to a registered 
     person who certifies that such liquid will not be used as a 
     fuel or in the production of a fuel, or
       ``(ii) the sale is to the ultimate purchaser of such 
     liquid.''.
       (4) Reportable Liquids.--Section 4083, as amended by this 
     Act, is amended by redesignating subsections (c) and (d) (as 
     redesignated by section 5211 of this Act) as subsections (d) 
     and (e), respectively, and by inserting after subsection (b) 
     the following new section:
       ``(c) Reportable liquid.--For purposes of this subpart--
       ``(1) In general.--The term `reportable liquid' means any 
     petroleum-based liquid other than a taxable fuel.
       ``(2) Taxation.--
       ``(A) Gasoline blend stocks and additives.--Gasoline blend 
     stocks and additives which are reportable liquids (as defined 
     in paragraph (1)) shall be subject to the rate of tax under 
     clause (i) of section 4081(a)(2)(A).
       ``(B) Other reportable liquids.--Any reportable liquid (as 
     defined in paragraph (1)) not described in subparagraph (A) 
     shall be subject to the rate of tax under clause (iii) of 
     section 4081(a)(2)(A).''.
       (5) Conforming amendments.--
       (A) Section 4081(e) is amended by inserting ``or reportable 
     liquid'' after ``taxable fuel''.
       (B) Section 4083(d) (relating to certain use defined as 
     removal), as redesignated by paragraph (4), is amended by 
     inserting ``or reportable liquid'' after ``taxable fuel''.
       (C) Section 4083(e)(1) (relating to administrative 
     authority), as redesignated by paragraph (4), is amended--
       (i) in subparagraph (A)--

       (I) by inserting ``or reportable liquid'' after ``taxable 
     fuel'', and
       (II) by inserting ``or such liquid'' after ``such fuel'' 
     each place it appears, and

       (ii) in subparagraph (B), by inserting ``or any reportable 
     liquid'' after ``any taxable fuel''.
       (D) Section 4101(a)(2), as added by section 5243 of this 
     Act, is amended by inserting ``or a reportable liquid'' after 
     ``taxable fuel''.
       (E) Section 4101(a)(3), as added by section 5242 of this 
     Act and redesignated by section 5243 of this Act, is amended 
     by inserting ``or any reportable liquid'' before the period 
     at the end.
       (F) Section 4102 is amended by inserting ``or any 
     reportable liquid'' before the period at the end.
       (G)(i) Section 6718, as added by section 5241 of this Act, 
     is amended--
       (I) in subsection (a), by inserting ``or any reportable 
     liquid (as defined in section 4083(c)(1))'' after `` section 
     4083(a)(1))'', and
       (II) in the heading, by inserting ``or reportable liquids'' 
     after ``taxable fuel''.
       (ii) The item relating to section 6718 in table of sections 
     for part I of subchapter B of chapter 68, as added by section 
     5241 of this Act, is amended by inserting ``or reportable 
     liquids'' after ``taxable fuels''.
       (H) Section 6427(h) is amended to read as follows:
       ``(h) Gasoline Blend Stocks or Additives and Reportable 
     Liquids.--Except as provided in subsection (k)--
       ``(1) if any gasoline blend stock or additive (within the 
     meaning of section 4083(a)(2)) is not used by any person to 
     produce gasoline and such person establishes that the 
     ultimate use of such gasoline blend stock or additive is not 
     to produce gasoline, or
       ``(2) if any reportable liquid (within the meaning of 
     section 4083(c)(1)) is not used by any person to produce a 
     taxable fuel and such person establishes that the ultimate 
     use of such reportable liquid is not to produce a taxable 
     fuel,

     then the Secretary shall pay (without interest) to such 
     person an amount equal to the aggregate amount of the tax 
     imposed on such person with respect to such gasoline blend 
     stock or additive or such reportable fuel.''.
       (I) Section 7232, as amended by this Act, is amended by 
     inserting ``or reportable liquid (within the meaning of 
     section 4083(c)(1))'' after ``section 4083)''.
       (J) Section 343 of the Trade Act of 2002, as amended by 
     section 5252 of this Act, is amended by inserting ``and 
     reportable liquids (as defined in section 4083(c)(1) of such 
     Code)'' after ``Internal Revenue Code of 1986)''.
       (b) Dyed Diesel.--Section 4082(a) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``and'', and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) which is removed, entered, or sold by a person 
     registered under section 4101.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to reportable liquids (as defined in section 
     4083(c) of the Internal Revenue Code) and fuel sold or used 
     after September 30, 2004.

     SEC. 5272. EXCISE TAX REPORTING.

       (a) In General.--Part II of subchapter A of chapter 61 is 
     amended by adding at the end the following new subpart:


                   ``Subpart E--Excise Tax Reporting

     ``SEC. 6025. RETURNS RELATING TO FUEL TAXES.

       ``(a) In General.--The Secretary shall require any person 
     liable for the tax imposed under Part III of subchapter A of 
     chapter 32 to file a return of such tax on a monthly basis.
       ``(b) Information Included with Return.--The Secretary 
     shall require any person filing a return under subsection (a) 
     to provide information regarding any refined product (whether 
     or not such product is taxable under this title) removed from 
     a terminal during the period for which such return 
     applies.''.
       (b) Conforming Amendment.--The table of parts for 
     subchapter A of chapter 61 is amended by adding at the end 
     the following new item:

``Subpart E--Excise Tax Reporting''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after September 30, 2004.

     SEC. 5273. INFORMATION REPORTING.

       (a) In General.--Section 4101(d) is amended by adding at 
     the end the following new flush sentence:

     ``The Secretary shall require reporting under the previous 
     sentence with respect to taxable fuels removed, entered, or 
     transferred from

[[Page S1146]]

     any refinery, pipeline, or vessel which is registered under 
     this section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply on October 1, 2004.

               Subtitle D--Definition of Highway Vehicle

     SEC. 5301. EXEMPTION FROM CERTAIN EXCISE TAXES FOR MOBILE 
                   MACHINERY.

       (a) Exemption From Tax on Heavy Trucks and Trailers Sold at 
     Retail.--
       (1) In general.--Section 4053 (relating to exemptions) is 
     amended by adding at the end the following new paragraph:
       ``(8) Mobile machinery.--Any vehicle which consists of a 
     chassis--
       ``(A) to which there has been permanently mounted (by 
     welding, bolting, riveting, or other means) machinery or 
     equipment to perform a construction, manufacturing, 
     processing, farming, mining, drilling, timbering, or similar 
     operation if the operation of the machinery or equipment is 
     unrelated to transportation on or off the public highways,
       ``(B) which has been specially designed to serve only as a 
     mobile carriage and mount (and a power source, where 
     applicable) for the particular machinery or equipment 
     involved, whether or not such machinery or equipment is in 
     operation, and
       ``(C) which, by reason of such special design, could not, 
     without substantial structural modification, be used as a 
     component of a vehicle designed to perform a function of 
     transporting any load other than that particular machinery or 
     equipment or similar machinery or equipment requiring such a 
     specially designed chassis.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect on the day after the date of the enactment 
     of this Act.
       (b) Exemption From Tax on Use of Certain Vehicles.--
       (1) In general.--Section 4483 (relating to exemptions) is 
     amended by redesignating subsection (g) as subsection (h) and 
     by inserting after subsection (f) the following new 
     subsection:
       ``(g) Exemption for Mobile Machinery.--No tax shall be 
     imposed by section 4481 on the use of any vehicle described 
     in section 4053(8).''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on the day after the date of the enactment 
     of this Act.
       (d) Exemption From Fuel Taxes.--
       (1) In general.--Section 6421(e)(2) (defining off-highway 
     business use) is amended by adding at the end the following 
     new subparagraph:
       ``(C) Uses in mobile machinery.--
       ``(i) In general.--The term `off-highway business use' 
     shall include any use in a vehicle which meets the 
     requirements described in clause (ii).
       ``(ii) Requirements for mobile machinery.--The requirements 
     described in this clause are--

       ``(I) the design-based test, and
       ``(II) the use-based test.

       ``(iii) Design-based test.--For purposes of clause (ii)(I), 
     the design-based test is met if the vehicle consists of a 
     chassis--

       ``(I) to which there has been permanently mounted (by 
     welding, bolting, riveting, or other means) machinery or 
     equipment to perform a construction, manufacturing, 
     processing, farming, mining, drilling, timbering, or similar 
     operation if the operation of the machinery or equipment is 
     unrelated to transportation on or off the public highways,
       ``(II) which has been specially designed to serve only as a 
     mobile carriage and mount (and a power source, where 
     applicable) for the particular machinery or equipment 
     involved, whether or not such machinery or equipment is in 
     operation, and
       ``(III) which, by reason of such special design, could not, 
     without substantial structural modification, be used as a 
     component of a vehicle designed to perform a function of 
     transporting any load other than that particular machinery or 
     equipment or similar machinery or equipment requiring such a 
     specially designed chassis.

       ``(iv) Use-based test.--For purposes of clause (ii)(II), 
     the use-based test is met if the use of the vehicle on public 
     highways was less than 5,000 miles during the taxpayer's 
     taxable year.
       ``(v) Special rule for use by certain tax-exempt 
     organizations.--In the case of any use in a vehicle by an 
     organization which is described in section 501(c) and exempt 
     from tax under section 501(a), clause (ii) shall be applied 
     without regard to subclause (II) thereof.''.
       (2) Annual refund of tax paid.--Section 6427(i)(2) 
     (relating to exceptions) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Nonapplication of paragraph.--This paragraph shall 
     not apply to any fuel used in any off-highway business use 
     described in section 6421(e)(2)(C).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5302. MODIFICATION OF DEFINITION OF OFF-HIGHWAY VEHICLE.

       (a) In General.--Section 7701(a) (relating to definitions) 
     is amended by adding at the end the following new paragraph:
       ``(48) Off-highway vehicles.--
       ``(A) Off-highway transportation vehicles.--
       ``(i) In general.--A vehicle shall not be treated as a 
     highway vehicle if such vehicle is specially designed for the 
     primary function of transporting a particular type of load 
     other than over the public highway and because of this 
     special design such vehicle's capability to transport a load 
     over the public highway is substantially limited or impaired.
       ``(ii) Determination of vehicle's design.--For purposes of 
     clause (i), a vehicle's design is determined solely on the 
     basis of its physical characteristics.
       ``(iii) Determination of substantial limitation or 
     impairment.--For purposes of clause (i), in determining 
     whether substantial limitation or impairment exists, account 
     may be taken of factors such as the size of the vehicle, 
     whether such vehicle is subject to the licensing, safety, and 
     other requirements applicable to highway vehicles, and 
     whether such vehicle can transport a load at a sustained 
     speed of at least 25 miles per hour. It is immaterial that a 
     vehicle can transport a greater load off the public highway 
     than such vehicle is permitted to transport over the public 
     highway.
       ``(B) Nontransportation trailers and semitrailers.--A 
     trailer or semitrailer shall not be treated as a highway 
     vehicle if it is specially designed to function only as an 
     enclosed stationary shelter for the carrying on of an off-
     highway function at an off-highway site.''.
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendment made by this section shall take effect on the date 
     of the enactment of this Act.
       (2) Fuel taxes.--With respect to taxes imposed under 
     subchapter B of chapter 31 and part III of subchapter A of 
     chapter 32, the amendment made by this section shall apply to 
     taxable periods beginning after the date of the enactment of 
     this Act.

            Subtitle E--Excise Tax Reform and Simplification

                      PART I--HIGHWAY EXCISE TAXES

     SEC. 5401. DEDICATION OF GAS GUZZLER TAX TO HIGHWAY TRUST 
                   FUND.

       (a) In General.--Section 9503(b)(1) (relating to transfer 
     to Highway Trust Fund of amounts equivalent to certain taxes) 
     is amended by redesignating subparagraphs (C), (D), and (E) 
     as subparagraphs (D), (E), and (F), respectively, and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) section 4064 (relating to gas guzzler tax),''.
       (b) Uniform Application of Tax.--Subparagraph (A) of 
     section 4064(b)(1) (defining automobile) is amended by 
     striking the second sentence.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5402. REPEAL CERTAIN EXCISE TAXES ON RAIL DIESEL FUEL 
                   AND INLAND WATERWAY BARGE FUELS.

       (a) Taxes on Trains.--
       (1) In general.--Subparagraph (A) of section 4041(a)(1) is 
     amended by striking ``or a diesel-powered train'' each place 
     it appears and by striking ``or train''.
       (2) Conforming amendments.--
       (A) Subparagraph (C) of section 4041(a)(1), as amended by 
     section 5001 of this Act, is amended by striking clause (ii) 
     and by redesignating clause (iii) as clause (ii).
       (B) Subparagraph (C) of section 4041(b)(1) is amended by 
     striking all that follows ``section 6421(e)(2)'' and 
     inserting a period.
       (C) Subsection (d) of section 4041 is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Diesel fuel used in trains.--There is hereby imposed 
     a tax of 0.1 cent per gallon on any liquid other than 
     gasoline (as defined in section 4083)--
       ``(A) sold by any person to an owner, lessee, or other 
     operator of a diesel-powered train for use as a fuel in such 
     train, or
       ``(B) used by any person as a fuel in a diesel-powered 
     train unless there was a taxable sale of such fuel under 
     subparagraph (A).
     No tax shall be imposed by this paragraph on the sale or use 
     of any liquid if tax was imposed on such liquid under section 
     4081.''.
       (D) Subsection (f) of section 4082 is amended by striking 
     ``section 4041(a)(1)'' and inserting ``subsections (d)(3) and 
     (a)(1) of section 4041, respectively''.
       (E) Subparagraphs (A) and (B) of section 4083(a)(3), as 
     amended by section 5261 of this Act, are amended by striking 
     ``or a diesel-powered train''.
       (F) Paragraph (3) of section 6421(f) is amended to read as 
     follows:
       ``(3) Gasoline used in trains.--In the case of gasoline 
     used as a fuel in a train, this section shall not apply with 
     respect to the Leaking Underground Storage Tank Trust Fund 
     financing rate under section 4081.''.
       (G) Paragraph (3) of section 6427(l) is amended to read as 
     follows:
       ``(3) Refund of certain taxes on fuel used in diesel-
     powered trains.--For purposes of this subsection, the term 
     `nontaxable use' includes fuel used in a diesel-powered 
     train. The preceding sentence shall not apply to the tax 
     imposed by section 4041(d) and the Leaking Underground 
     Storage Tank Trust Fund financing rate under section 4081 
     except with respect to fuel sold for exclusive use by a State 
     or any political subdivision thereof.''.
       (b) Fuel Used on Inland Waterways.--
       (1) In general.--Paragraph (1) of section 4042(b) is 
     amended by adding ``and'' at the end of subparagraph (A), by 
     striking ``, and''

[[Page S1147]]

     at the end of subparagraph (B) and inserting a period, and by 
     striking subparagraph (C).
       (2) Conforming amendment.--Paragraph (2) of section 4042(b) 
     is amended by striking subparagraph (C).
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

                     PART II--AQUATIC EXCISE TAXES

     SEC. 5411. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND 
                   TRANSFORMATION OF SPORT FISH RESTORATION 
                   ACCOUNT.

       (a) Simplification of Funding for Boat Safety Account.--
       (1) In general.--Section 9503(c)(3) (relating to transfers 
     from Trust Fund for motorboat fuel taxes), as redesignated by 
     section 5002 of this Act, is amended--
       (A) by striking ``Fund--'' and all that follows through 
     ``shall be transferred'' in subparagraph (B) and inserting 
     ``Fund which is attributable to motorboat fuel taxes shall be 
     transferred'', and
       (B) by striking subparagraph (A), and
       (C) by redesignating subparagraphs (B) through (E) as 
     subparagraphs (A) through (D), respectively.
       (2) Conforming amendments.--
       (A) Section 9503(b)(4) is amended by striking subparagraph 
     (D).
       (B) Subparagraph (B) of section 9503(c)(3), as redesignated 
     by section 5002 of this Act and subsection (a)(3), is 
     amended--
       (i) by striking ``account'' in the heading and inserting 
     ``trust fund'',
       (ii) by striking ``or (B)'' in clause (ii), and
       (iii) by striking ``Account in the Aquatic Resources''.
       (C) Subparagraph (C) of section 9503(c)(3), as redesignated 
     by section 5002 of this Act and subsection (a)(3), is amended 
     by striking ``, but only to the extent such taxes are 
     deposited into the Highway Trust Fund''.
       (D) Paragraph (4) of section 9503(c), as redesignated by 
     section 5002 of this Act, is amended--
       (i) by striking ``Account in the Aquatic Resources'' in 
     subparagraph (A), and
       (ii) by striking ``, but only to the extent such taxes are 
     deposited into the Highway Trust Fund'' in subparagraph (B).
       (b) Merging of Accounts.--
       (1) In general.--Subsection (a) of section 9504 is amended 
     to read as follows:
       ``(a) Creation of Trust Fund.--There is hereby established 
     in the Treasury of the United States a trust fund to be known 
     as the `Sport Fish Restoration Trust Fund'. Such Trust Fund 
     shall consist of such amounts as may be appropriated, 
     credited, or paid to it as provided in this section, section 
     9503(c)(3), section 9503(c)(4), or section 9602(b).''.
       (2) Conforming amendments.--
       (A) Subsection (b) of section 9504 is amended--
       (i) by striking ``Account'' in the heading and inserting 
     ``Trust Fund'',
       (ii) by striking ``Account'' both places it appears in 
     paragraphs (1) and (2) and inserting ``Trust Fund'', and
       (iii) by striking ``account'' both places it appears in the 
     headings for paragraphs (1) and (2) and inserting ``trust 
     fund''.
       (B) Subsection (d) of section 9504, as amended by section 
     5001 of this Act, is amended--
       (i) by striking ``Aquatic Resources'' in the heading,
       (ii) by striking ``any Account in the Aquatic Resources'' 
     in paragraph (1) and inserting ``the Sports Fish 
     Restoration'', and
       (iii) by striking ``any such Account'' in paragraph (1) and 
     inserting ``such Trust Fund''.
       (C) Subsection (e) of section 9504, as amended by section 
     5002 of this Act, is amended by striking ``Boat Safety 
     Account and Sport Fish Restoration Account'' and inserting 
     ``Sport Fish Restoration Trust Fund''.
       (D) Section 9504 is amended by striking ``AQUATIC 
     RESOURCES'' in the heading and inserting ``SPORT FISH 
     RESTORATION''.
       (E) The item relating to section 9504 in the table of 
     sections for subchapter A of chapter 98 is amended by 
     striking ``aquatic resources'' and inserting ``sport fish 
     restoration''.
       (c) Phaseout of Boat Safety Account.--Subsection (c) of 
     section 9504 is amended to read as follows:
       ``(c) Expenditures From Boat Safety Account.--Amounts 
     remaining in the Boat Safety Account on October 1, 2004, and 
     amounts thereafter credited to the Account under section 
     9602(b), shall be available, as provided by appropriation 
     Acts, for making expenditures before October 1, 2009, to 
     carry out the purposes of section 13106 of title 46, United 
     States Code (as in effect on the date of the enactment of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004).''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.

     SEC. 5412. EXEMPTION OF LED DEVICES FROM SONAR DEVICES 
                   SUITABLE FOR FINDING FISH.

       (a) In General.--Section 4162(b) (defining sonar device 
     suitable for finding fish) is amended by striking ``or'' at 
     the end of paragraph (3), by striking the period at the end 
     of paragraph (4) and inserting ``, or'', and by adding at the 
     end the following new paragraph:
       ``(5) an LED display.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after September 30, 2004.

     SEC. 5413. REPEAL OF HARBOR MAINTENANCE TAX ON EXPORTS.

       (a) In General.--Subsection (d) of section 4462 (relating 
     to definitions and special rules) is amended to read as 
     follows:
       ``(d) Nonapplicability of Tax to Exports.--The tax imposed 
     by section 4461(a) shall not apply to any port use with 
     respect to any commercial cargo to be exported from the 
     United States.''.
       (b) Conforming Amendments.--
       (1) Section 4461(c)(1) is amended by adding ``or'' at the 
     end of subparagraph (A), by striking subparagraph (B), and by 
     redesignating subparagraph (C) as subparagraph (B).
       (2) Section 4461(c)(2) is amended by striking ``imposed--'' 
     and all that follows through ``in any other case,'' and 
     inserting ``imposed''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect before, on, and after the date of the 
     enactment of this Act.

     SEC. 5414. CAP ON EXCISE TAX ON CERTAIN FISHING EQUIPMENT.

       (a) In General.--Paragraph (1) of section 4161(a) (relating 
     to sport fishing equipment) is amended to read as follows:
       ``(1) Imposition of tax.--
       ``(A) In general.--There is hereby imposed on the sale of 
     any article of sport fishing equipment by the manufacturer, 
     producer, or importer a tax equal to 10 percent of the price 
     for which so sold.
       ``(B) Limitation on tax imposed on fishing rods and 
     poles.--The tax imposed by subparagraph (A) on any fishing 
     rod or pole shall not exceed $10.''.
       (b) Conforming Amendments.--Section 4161(a)(2) is amended 
     by striking ``paragraph (1)'' both places it appears and 
     inserting ``paragraph (1)(A)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after September 30, 2004.

     SEC. 5415. REDUCTION IN RATE OF TAX ON PORTABLE AERATED BAIT 
                   CONTAINERS.

       (a) In General.--Section 4161(a)(2)(A) (relating to 3 
     percent rate of tax for electric outboard motors and sonar 
     devices suitable for finding fish) is amended by inserting 
     ``or a portable aerated bait container'' after ``fish''.
       (b) Conforming Amendment.--The heading of section 
     4161(a)(2) is amended by striking ``electric outboard motors 
     and sonar devices suitable for finding fish'' and inserting 
     ``certain sport fishing equipment''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after September 30, 2004.

                     PART III--AERIAL EXCISE TAXES

     SEC. 5421. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR 
                   AGRICULTURAL AERIAL APPLICATORS AND EXEMPTION 
                   FOR FIXED-WING AIRCRAFT ENGAGED IN FORESTRY 
                   OPERATIONS.

       (a) No Waiver by Farm Owner, Tenant, or Operator 
     Necessary.--Subparagraph (B) of section 6420(c)(4) (relating 
     to certain farming use other than by owner, etc.) is amended 
     to read as follows:
       ``(B) if the person so using the gasoline is an aerial or 
     other applicator of fertilizers or other substances and is 
     the ultimate purchaser of the gasoline, then subparagraph (A) 
     of this paragraph shall not apply and the aerial or other 
     applicator shall be treated as having used such gasoline on a 
     farm for farming purposes.''.
       (b) Exemption Includes Fuel Used Between Airfield and 
     Farm.--Section 6420(c)(4), as amended by subsection (a), is 
     amended by adding at the end the following new flush 
     sentence:
     ``For purposes of this paragraph, in the case of an aerial 
     applicator, gasoline shall be treated as used on a farm for 
     farming purposes if the gasoline is used for the direct 
     flight between the airfield and 1 or more farms.''.
       (c) Exemption from Tax on Air Transportation of Persons for 
     Forestry Purposes Extended to Fixed-Wing Aircraft.--
     Subsection (f) of section 4261 (relating to tax on air 
     transportation of persons) is amended to read as follows:
       ``(f) Exemption for Certain Uses.--No tax shall be imposed 
     under subsection (a) or (b) on air transportation--
       ``(1) by helicopter for the purpose of transporting 
     individuals, equipment, or supplies in the exploration for, 
     or the development or removal of, hard minerals, oil, or gas, 
     or
       ``(2) by helicopter or by fixed-wing aircraft for the 
     purpose of the planting, cultivation, cutting, or 
     transportation of, or caring for, trees (including logging 
     operations),

     but only if the helicopter or fixed-wing aircraft does not 
     take off from, or land at, a facility eligible for assistance 
     under the Airport and Airway Development Act of 1970, or 
     otherwise use services provided pursuant to section 44509 or 
     44913(b) or subchapter I of chapter 471 of title 49, United 
     States Code, during such use. In the case of helicopter 
     transportation described in paragraph (1), this subsection 
     shall be applied by treating each flight segment as a 
     distinct flight.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel use or air transportation after the date 
     of the enactment of this Act.

     SEC. 5422. MODIFICATION OF RURAL AIRPORT DEFINITION.

       (a) In General.--Section 4261(e)(1)(B) (defining rural 
     airport) is amended--

[[Page S1148]]

       (1) by inserting ``(in the case of any airport described in 
     clause (ii)(III), on flight segments of at least 100 miles)'' 
     after ``by air'' in clause (i), and
       (2) by striking the period at the end of subclause (II) of 
     clause (ii) and inserting ``, or'', and by adding at the end 
     of clause (ii) the following new subclause:

       ``(III) is not connected by paved roads to another 
     airport.''.

       (b) Effective Date.--The amendments made by this section 
     shall take effect on April 1, 2004.

     SEC. 5423. EXEMPTION FROM TICKET TAXES FOR TRANSPORTATION 
                   PROVIDED BY SEAPLANES.

       (a) In General.--Section 4261 (relating to imposition of 
     tax) is amended by redesignating subsection (i) as subsection 
     (j) and by inserting after subsection (h) the following new 
     subsection:
       ``(i) Exemption for Seaplanes.--No tax shall be imposed by 
     this section or section 4271 on any air transportation by a 
     seaplane with respect to any segment consisting of a takeoff 
     from, and a landing on, water, but only if the places at 
     which such takeoff and landing occur have not received and 
     are not receiving financial assistance from the Airport and 
     Airways Trust Fund.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transportation beginning after March 31, 2004.

     SEC. 5424. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES ON 
                   AIR TRANSPORTATION.

       (a) In General.--Section 4281 (relating to small aircraft 
     on nonestablished lines) is amended by adding at the end the 
     following new sentence: ``For purposes of this section, an 
     aircraft shall not be considered as operated on an 
     established line if such aircraft is operated on a flight the 
     sole purpose of which is sightseeing.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to transportation beginning on or 
     after the date of the enactment of this Act, but shall not 
     apply to any amount paid before such date for such 
     transportation.

                PART IV--ALCOHOLIC BEVERAGE EXCISE TAXES

     SEC. 5431. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON PRODUCERS 
                   AND MARKETERS OF ALCOHOLIC BEVERAGES.

       (a) Repeal of Occupational Taxes.--
       (1) In general.--The following provisions of part II of 
     subchapter A of chapter 51 (relating to occupational taxes) 
     are hereby repealed:
       (A) Subpart A (relating to proprietors of distilled spirits 
     plants, bonded wine cellars, etc.).
       (B) Subpart B (relating to brewer).
       (C) Subpart D (relating to wholesale dealers) (other than 
     sections 5114 and 5116).
       (D) Subpart E (relating to retail dealers) (other than 
     section 5124).
       (E) Subpart G (relating to general provisions) (other than 
     sections 5142, 5143, 5145, and 5146).
       (2) Nonbeverage domestic drawback.--Section 5131 is amended 
     by striking ``, on payment of a special tax per annum,''.
       (3) Industrial use of distilled spirits.--Section 5276 is 
     hereby repealed.
       (b) Conforming Amendments.--
       (1)(A) The heading for part II of subchapter A of chapter 
     51 and the table of subparts for such part are amended to 
     read as follows:

                  ``PART II--MISCELLANEOUS PROVISIONS

``Subpart A. Manufacturers of stills.
``Subpart B. Nonbeverage domestic drawback claimants.
``Subpart C. Recordkeeping by dealers.
``Subpart D. Other provisions.''.

       (B) The table of parts for such subchapter A is amended by 
     striking the item relating to part II and inserting the 
     following new item:

``Part II. Miscellaneous provisions.''.

       (2) Subpart C of part II of such subchapter (relating to 
     manufacturers of stills) is redesignated as subpart A.
       (3)(A) Subpart F of such part II (relating to nonbeverage 
     domestic drawback claimants) is redesignated as subpart B and 
     sections 5131 through 5134 are redesignated as sections 5111 
     through 5114, respectively.
       (B) The table of sections for such subpart B, as so 
     redesignated, is amended--
       (i) by redesignating the items relating to sections 5131 
     through 5134 as relating to sections 5111 through 5114, 
     respectively, and
       (ii) by striking ``AND RATE OF TAX'' in the item relating 
     to section 5111, as so redesignated.
       (C) Section 5111, as redesignated by subparagraph (A), is 
     amended--
       (i) by striking ``AND RATE OF TAX'' in the section heading,
       (ii) by striking the subsection heading for subsection (a), 
     and
       (iii) by striking subsection (b).
       (4) Part II of subchapter A of chapter 51 is amended by 
     adding after subpart B, as redesignated by paragraph (3), the 
     following new subpart:

                 ``Subpart C--Recordkeeping by Dealers

``Sec. 5121. Recordkeeping by wholesale dealers.
``Sec. 5122. Recordkeeping by retail dealers.
``Sec. 5123. Preservation and inspection of records, and entry of 
              premises for inspection.''.

       (5)(A) Section 5114 (relating to records) is moved to 
     subpart C of such part II and inserted after the table of 
     sections for such subpart.
       (B) Section 5114 is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

     ``SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.'',

     and
       (ii) by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Wholesale Dealers.--For purposes of this part--
       ``(1) Wholesale dealer in liquors.--The term `wholesale 
     dealer in liquors' means any dealer (other than a wholesale 
     dealer in beer) who sells, or offers for sale, distilled 
     spirits, wines, or beer, to another dealer.
       ``(2) Wholesale dealer in beer.--The term `wholesale dealer 
     in beer' means any dealer who sells, or offers for sale, 
     beer, but not distilled spirits or wines, to another dealer.
       ``(3) Dealer.--The term `dealer' means any person who 
     sells, or offers for sale, any distilled spirits, wines, or 
     beer.
       ``(4) Presumption in case of sale of 20 wine gallons or 
     more.--The sale, or offer for sale, of distilled spirits, 
     wines, or beer, in quantities of 20 wine gallons or more to 
     the same person at the same time, shall be presumptive 
     evidence that the person making such sale, or offer for sale, 
     is engaged in or carrying on the business of a wholesale 
     dealer in liquors or a wholesale dealer in beer, as the case 
     may be. Such presumption may be overcome by evidence 
     satisfactorily showing that such sale, or offer for sale, was 
     made to a person other than a dealer.''.
       (C) Paragraph (3) of section 5121(d), as so redesignated, 
     is amended by striking ``section 5146'' and inserting 
     ``section 5123''.
       (6)(A) Section 5124 (relating to records) is moved to 
     subpart C of part II of subchapter A of chapter 51 and 
     inserted after section 5121.
       (B) Section 5124 is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

     ``SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.'',

       (ii) by striking ``section 5146'' in subsection (c) and 
     inserting ``section 5123'', and
       (iii) by redesignating subsection (c) as subsection (d) and 
     inserting after subsection (b) the following new subsection:
       ``(c) Retail Dealers.--For purposes of this section--
       ``(1) Retail dealer in liquors.--The term `retail dealer in 
     liquors' means any dealer (other than a retail dealer in beer 
     or a limited retail dealer) who sells, or offers for sale, 
     distilled spirits, wines, or beer, to any person other than a 
     dealer.
       ``(2) Retail dealer in beer.--The term `retail dealer in 
     beer' means any dealer (other than a limited retail dealer) 
     who sells, or offers for sale, beer, but not distilled 
     spirits or wines, to any person other than a dealer.
       ``(3) Limited retail dealer.--The term `limited retail 
     dealer' means any fraternal, civic, church, labor, 
     charitable, benevolent, or ex-servicemen's organization 
     making sales of distilled spirits, wine or beer on the 
     occasion of any kind of entertainment, dance, picnic, bazaar, 
     or festival held by it, or any person making sales of 
     distilled spirits, wine or beer to the members, guests, or 
     patrons of bona fide fairs, reunions, picnics, carnivals, or 
     other similar outings, if such organization or person is not 
     otherwise engaged in business as a dealer.
       ``(4) Dealer.--The term `dealer' has the meaning given such 
     term by section 5121(c)(3).''.
       (7) Section 5146 is moved to subpart C of part II of 
     subchapter A of chapter 51, inserted after section 5122, and 
     redesignated as section 5123.
       (8) Part II of subchapter A of chapter 51 is amended by 
     inserting after subpart C the following new subpart:

                     ``Subpart D--Other Provisions

``Sec. 5131. Packaging distilled spirits for industrial uses.
``Sec. 5132. Prohibited purchases by dealers.''.

       (9) Section 5116 is moved to subpart D of part II of 
     subchapter A of chapter 51, inserted after the table of 
     sections, redesignated as section 5131, and amended by 
     inserting ``(as defined in section 5121(c))'' after 
     ``dealer'' in subsection (a).
       (10) Subpart D of part II of subchapter A of chapter 51 is 
     amended by adding at the end thereof the following new 
     section:

     ``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.

       ``(a) In General.--Except as provided in regulations 
     prescribed by the Secretary, it shall be unlawful for a 
     dealer to purchase distilled spirits for resale from any 
     person other than a wholesale dealer in liquors who is 
     required to keep the records prescribed by section 5121.
       ``(b) Limited Retail Dealers.--A limited retail dealer may 
     lawfully purchase distilled spirits for resale from a retail 
     dealer in liquors.
       ``(c) Penalty and Forfeiture.--

  ``For penalty and forfeiture provisions applicable to violations of 
subsection (a), see sections 5687 and 7302.''.

       (11) Subsection (b) of section 5002 is amended--
       (A) by striking ``section 5112(a)'' and inserting ``section 
     5121(c)(3)'',
       (B) by striking ``section 5112'' and inserting ``section 
     5121(c)'',
       (C) by striking ``section 5122'' and inserting ``section 
     5122(c)''.

[[Page S1149]]

       (12) Subparagraph (A) of section 5010(c)(2) is amended by 
     striking ``section 5134'' and inserting ``section 5114''.
       (13) Subsection (d) of section 5052 is amended to read as 
     follows:
       ``(d) Brewer.--For purposes of this chapter, the term 
     `brewer' means any person who brews beer or produces beer for 
     sale. Such term shall not include any person who produces 
     only beer exempt from tax under section 5053(e).''.
       (14) The text of section 5182 is amended to read as 
     follows:
       ``For provisions requiring recordkeeping by wholesale 
     liquor dealers, see section 5121, and by retail liquor 
     dealers, see section 5122.''.
       (15) Subsection (b) of section 5402 is amended by striking 
     ``section 5092'' and inserting ``section 5052(d)''.
       (16) Section 5671 is amended by striking ``or 5091''.
       (17)(A) Part V of subchapter J of chapter 51 is hereby 
     repealed.
       (B) The table of parts for such subchapter J is amended by 
     striking the item relating to part V.
       (18)(A) Sections 5142, 5143, and 5145 are moved to 
     subchapter D of chapter 52, inserted after section 5731, 
     redesignated as sections 5732, 5733, and 5734, respectively, 
     and amended by striking ``this part'' each place it appears 
     and inserting ``this subchapter''.
       (B) Section 5732, as redesignated by subparagraph (A), is 
     amended by striking ``(except the tax imposed by section 
     5131)'' each place it appears.
       (C) Paragraph (2) of section 5733(c), as redesignated by 
     subparagraph (A), is amended by striking ``liquors'' both 
     places it appears and inserting ``tobacco products and 
     cigarette papers and tubes''.
       (D) The table of sections for subchapter D of chapter 52 is 
     amended by adding at the end thereof the following:

``Sec. 5732. Payment of tax.
``Sec. 5733. Provisions relating to liability for occupational taxes.
``Sec. 5734. Application of State laws.''.

       (E) Section 5731 is amended by striking subsection (c) and 
     by redesignating subsection (d) as subsection (c).
       (19) Subsection (c) of section 6071 is amended by striking 
     ``section 5142'' and inserting ``section 5732''.
       (20) Paragraph (1) of section 7652(g) is amended--
       (A) by striking ``subpart F'' and inserting ``subpart B'', 
     and
       (B) by striking ``section 5131(a)'' and inserting ``section 
     5111''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2004, but shall not apply to 
     taxes imposed for periods before such date.

     SEC. 5432. SUSPENSION OF LIMITATION ON RATE OF RUM EXCISE TAX 
                   COVER OVER TO PUERTO RICO AND VIRGIN ISLANDS.

       (a) In General.--Section 7652(f)(1) (relating to limitation 
     on cover over of tax on distilled spirits) is amended by 
     striking ``January 1, 2004'' and inserting ``October 1, 2004, 
     and $13.50 in the case of distilled spirits brought into the 
     United States after September 30, 2004, and before January 1, 
     2006''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to articles containing distilled spirits brought into 
     the United States after December 31, 2003.
       (2) Special rule.--
       (A) In general.--After September 30, 2004, the treasury of 
     Puerto Rico shall make a Conservation Trust Fund transfer 
     within 30 days from the date of each cover over payment to 
     such treasury under section 7652(e) of the Internal Revenue 
     Code of 1986.
       (B) Conservation trust fund transfer.--
       (i) In general.--For purposes of this paragraph, the term 
     ``Conservation Trust Fund transfer'' means a transfer to the 
     Puerto Rico Conservation Trust Fund of an amount equal to 50 
     cents per proof gallon of the taxes imposed under section 
     5001 or section 7652 of such Code on distilled spirits that 
     are covered over to the treasury of Puerto Rico under section 
     7652(e) of such Code.
       (ii) Treatment of transfer.--Each Conservation Trust Fund 
     transfer shall be treated as principal for an endowment, the 
     income from which to be available for use by the Puerto Rico 
     Conservation Trust Fund for the purposes for which the Trust 
     Fund was established.
       (iii) Result of nontransfer.--

       (I) In general.--Upon notification by the Secretary of the 
     Interior that a Conservation Trust Fund transfer has not been 
     made by the treasury of Puerto Rico, the Secretary of the 
     Treasury shall, except as provided in subclause (II), deduct 
     and withhold from the next cover over payment to be made to 
     the treasury of Puerto Rico under section 7652(e) of such 
     Code an amount equal to the appropriate Conservation Trust 
     Fund transfer and interest thereon at the underpayment rate 
     established under section 6621 of such Code as of the due 
     date of such transfer. The Secretary of the Treasury shall 
     transfer such amount deducted and withheld, and the interest 
     thereon, directly to the Puerto Rico Conservation Trust Fund.
       (II) Good cause exception.--If the Secretary of the 
     Interior finds, after consultation with the Governor of 
     Puerto Rico, that the failure by the treasury of Puerto Rico 
     to make a required transfer was for good cause, and notifies 
     the Secretary of the Treasury of the finding of such good 
     cause before the due date of the next cover over payment 
     following the notification of nontransfer, then the Secretary 
     of the Treasury shall not deduct the amount of such 
     nontransfer from any cover over payment.

       (C) Puerto rico conservation trust fund.--For purposes of 
     this paragraph, the term ``Puerto Rico Conservation Trust 
     Fund'' means the fund established pursuant to a Memorandum of 
     Understanding between the United States Department of the 
     Interior and the Commonwealth of Puerto Rico, dated December 
     24, 1968.

                       PART V--SPORT EXCISE TAXES

     SEC. 5441. CUSTOM GUNSMITHS.

       (a) Small Manufacturers Exempt From Firearms Excise Tax.--
     Section 4182 (relating to exemptions) is amended by 
     redesignating subsection (c) as subsection (d) and by 
     inserting after subsection (b) the following new subsection:
       ``(c) Small Manufacturers, Etc.--
       ``(1) In general.--The tax imposed by section 4181 shall 
     not apply to any article described in such section if 
     manufactured, produced, or imported by a person who 
     manufactures, produces, and imports less than 50 of such 
     articles during the calendar year.
       ``(2) Controlled groups.--All persons treated as a single 
     employer for purposes of subsection (a) or (b) of section 52 
     shall be treated as one person for purposes of paragraph 
     (1).''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to articles sold by the manufacturer, producer, or 
     importer on or after the date which is the first day of the 
     month beginning at least 2 weeks after the date of the 
     enactment of this Act.
       (2) No inference.--Nothing in the amendments made by this 
     section shall be construed to create any inference with 
     respect to the proper tax treatment of any sales before the 
     effective date of such amendments.

     SEC. 5442. MODIFIED TAXATION OF IMPORTED ARCHERY PRODUCTS.

       (a) Bows.--Paragraph (1) of section 4161(b) (relating to 
     bows) is amended to read as follows:
       ``(1) Bows.--
       ``(A) In general.--There is hereby imposed on the sale by 
     the manufacturer, producer, or importer of any bow which has 
     a peak draw weight of 30 pounds or more, a tax equal to 11 
     percent of the price for which so sold.
       ``(B) Archery equipment.--There is hereby imposed on the 
     sale by the manufacturer, producer, or importer--
       ``(i) of any part or accessory suitable for inclusion in or 
     attachment to a bow described in subparagraph (A), and
       ``(ii) of any quiver or broadhead suitable for use with an 
     arrow described in paragraph (2),

     a tax equal to 11 percent of the price for which so sold.''.
       (b) Arrows.--Subsection (b) of section 4161 (relating to 
     bows and arrows, etc.) is amended by redesignating paragraph 
     (3) as paragraph (4) and inserting after paragraph (2) the 
     following:
       ``(3) Arrows.--
       ``(A) In general.--There is hereby imposed on the sale by 
     the manufacturer, producer, or importer of any arrow, a tax 
     equal to 12 percent of the price for which so sold.
       ``(B) Exception.--In the case of any arrow of which the 
     shaft or any other component has been previously taxed under 
     paragraph (1) or (2)--
       ``(i) section 6416(b)(3) shall not apply, and
       ``(ii) the tax imposed by subparagraph (A) shall be an 
     amount equal to the excess (if any) of--

       ``(I) the amount of tax imposed by this paragraph 
     (determined without regard to this subparagraph), over
       ``(II) the amount of tax paid with respect to the tax 
     imposed under paragraph (1) or (2) on such shaft or 
     component.

       ``(C) Arrow.--For purposes of this paragraph, the term 
     `arrow' means any shaft described in paragraph (2) to which 
     additional components are attached.''.
       (c) Conforming Amendments.--Section 4161(b)(2) is amended--
       (1) by inserting ``(other than broadheads)'' after 
     ``point'', and
       (2) by striking ``Arrows.--'' in the heading and inserting 
     ``Arrow components.--''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after the date of the enactment of this Act.

     SEC. 5443. TREATMENT OF TRIBAL GOVERNMENTS FOR PURPOSES OF 
                   FEDERAL WAGERING EXCISE AND OCCUPATIONAL TAXES.

       (a) In General.--Subsection (a) of section 7871 (relating 
     to Indian tribal governments treated as States for certain 
     purposes) is amended by striking ``and'' at the end of 
     paragraph (6), by striking the period at the end of paragraph 
     (7) and inserting ``; and'', and by adding at the end the 
     following new paragraph:
       ``(8) for purposes of chapter 35 (relating to taxes on 
     wagering).''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2004, but shall not apply to 
     taxes imposed for periods before such date.

[[Page S1150]]

                       PART VI--OTHER PROVISIONS

     SEC. 5451. INCOME TAX CREDIT FOR DISTILLED SPIRITS 
                   WHOLESALERS AND FOR DISTILLED SPIRITS IN 
                   CONTROL STATE BAILMENT WAREHOUSES FOR COSTS OF 
                   CARRYING FEDERAL EXCISE TAXES ON BOTTLED 
                   DISTILLED SPIRITS.

       (a) In General.--Subpart A of part I of subchapter A of 
     chapter 51 (relating to gallonage and occupational taxes) is 
     amended by adding at the end the following new section:

     ``SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF CARRYING 
                   EXCISE TAX.

       ``(a) In General.--For purposes of section 38, the amount 
     of the distilled spirits credit for any taxable year is the 
     amount equal to the product of--
       ``(1) in the case of--
       ``(A) any eligible wholesaler--
       ``(i) the number of cases of bottled distilled spirits--

       ``(I) which were bottled in the United States, and
       ``(II) which are purchased by such wholesaler during the 
     taxable year directly from the bottler of such spirits, or

       ``(B) any person which is subject to section 5005 and which 
     is not an eligible wholesaler, the number of cases of bottled 
     distilled spirits which are stored in a warehouse operated 
     by, or on behalf of, a State, or agency or political 
     subdivision thereof, on which title has not passed on an 
     unconditional sale basis, and
       ``(2) the average tax-financing cost per case for the most 
     recent calendar year ending before the beginning of such 
     taxable year.
       ``(b) Eligible Wholesaler.--For purposes of this section, 
     the term `eligible wholesaler' means any person which holds a 
     permit under the Federal Alcohol Administration Act as a 
     wholesaler of distilled spirits which is not a State, or 
     agency or political subdivision thereof.
       ``(c) Average Tax-Financing Cost.--
       ``(1) In general.--For purposes of this section, the 
     average tax-financing cost per case for any calendar year is 
     the amount of interest which would accrue at the deemed 
     financing rate during a 60-day period on an amount equal to 
     the deemed Federal excise tax per case.
       ``(2) Deemed financing rate.--For purposes of paragraph 
     (1), the deemed financing rate for any calendar year is the 
     average of the corporate overpayment rates under paragraph 
     (1) of section 6621(a) (determined without regard to the last 
     sentence of such paragraph) for calendar quarters of such 
     year.
       ``(3) Deemed federal excise tax per case.--For purposes of 
     paragraph (1), the deemed Federal excise tax per case is 
     $25.68.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Case.--The term `case' means 12 80-proof 750 
     milliliter bottles.
       ``(2) Number of cases in lot.--The number of cases in any 
     lot of distilled spirits shall be determined by dividing the 
     number of liters in such lot by 9.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit), as 
     amended by section 5101 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (15), by striking the period 
     at the end of paragraph (16) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(17) the distilled spirits credit determined under 
     section 5011(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d), as amended by section 5101 of this Act, 
     is amended by adding at the end the following new paragraph:
       ``(12) No carryback of section 5011 credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 5011(a) may be carried back to a taxable year 
     beginning before the date of the enactment of section 
     5011.''.
       (2) The table of sections for subpart A of part I of 
     subchapter A of chapter 51 is amended by adding at the end 
     the following new item:

``Sec. 5011. Income tax credit for average cost of carrying excise 
              tax.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5452. CREDIT FOR TAXPAYERS OWNING COMMERCIAL POWER 
                   TAKEOFF VEHICLES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45G. COMMERCIAL POWER TAKEOFF VEHICLES CREDIT.

       ``(a) General Rule.--For purposes of section 38, the amount 
     of the commercial power takeoff vehicles credit determined 
     under this section for the taxable year is $250 for each 
     qualified commercial power takeoff vehicle owned by the 
     taxpayer as of the close of the calendar year in which or 
     with which the taxable year of the taxpayer ends.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified commercial power takeoff vehicle.--The term 
     `qualified commercial power takeoff vehicle' means any 
     highway vehicle described in paragraph (2) which is propelled 
     by any fuel subject to tax under section 4041 or 4081 if such 
     vehicle is used in a trade or business or for the production 
     of income (and is licensed and insured for such use).
       ``(2) Highway vehicle described.--A highway vehicle is 
     described in this paragraph if such vehicle is--
       ``(A) designed to engage in the daily collection of refuse 
     or recyclables from homes or businesses and is equipped with 
     a mechanism under which the vehicle's propulsion engine 
     provides the power to operate a load compactor, or
       ``(B) designed to deliver ready mixed concrete on a daily 
     basis and is equipped with a mechanism under which the 
     vehicle's propulsion engine provides the power to operate a 
     mixer drum to agitate and mix the product en route to the 
     delivery site.
       ``(c) Exception for Vehicles Used by Governments, Etc.--No 
     credit shall be allowed under this section for any vehicle 
     owned by any person at the close of a calendar year if such 
     vehicle is used at any time during such year by--
       ``(1) the United States or an agency or instrumentality 
     thereof, a State, a political subdivision of a State, or an 
     agency or instrumentality of one or more States or political 
     subdivisions, or
       ``(2) an organization exempt from tax under section 501(a).
       ``(d) Termination.--This section shall not apply with 
     respect to any calendar year after 2006.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit), as 
     amended by section 5451 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (16), by striking the period 
     at the end of paragraph (17) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(18) the commercial power takeoff vehicles credit under 
     section 45G(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d), as amended by section 5451 of this Act, 
     is amended by adding at the end the following new paragraph:
       ``(13) No carryback of section 45g credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 45G(a) may be carried back to a taxable year 
     beginning on or before the date of the enactment of section 
     45G.''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 45G. Commercial power takeoff vehicles credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5453. CREDIT FOR AUXILIARY POWER UNITS INSTALLED ON 
                   DIESEL-POWERED TRUCKS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits), as amended 
     by section 5452 of this Act, is amended by adding at the end 
     the following new section:

     ``SEC. 45H. AUXILIARY POWER UNIT CREDIT.

       ``(a) General Rule.--For purposes of section 38, the amount 
     of the auxiliary power unit credit determined under this 
     section for the taxable year is $250 for each qualified 
     auxiliary power unit--
       ``(1) purchased by the taxpayer, and
       ``(2) installed or caused to be installed by the taxpayer 
     on a qualified heavy-duty highway vehicle during such taxable 
     year.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified auxiliary power unit.--The term `qualified 
     auxiliary power unit' means any integrated system which--
       ``(A) provides heat, air conditioning, engine warming, and 
     electricity to the factory installed components on a 
     qualified heavy-duty highway vehicle as if the main drive 
     engine of such vehicle was in operation,
       ``(B) is employed to reduce long-term idling of the diesel 
     engine on such a vehicle, and
       ``(C) is certified by the Environmental Protection Agency 
     as meeting emission standards in regulations in effect on the 
     date of the enactment of this section.
       ``(2) Qualified heavy-duty highway vehicle.--The term 
     `qualified heavy-duty highway vehicle' means any highway 
     vehicle weighing more than 12,500 pounds and powered by a 
     diesel engine.
       ``(c) Termination.--This section shall not apply with 
     respect to any installation occurring after December 31, 
     2006.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit), as 
     amended by section 5452 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (17), by striking the period 
     at the end of paragraph (18) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(19) the auxiliary power unit credit under section 
     45H(a).''.
       (c) Conforming Amendments.--
       (1) Section 39(d), as amended by section 5452 of this Act, 
     is amended by adding at the end the following new paragraph:
       ``(14) No carryback of section 45h credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 45H(a) may be carried back to a taxable year 
     beginning on or before the date of the enactment of section 
     45H.''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by section 5452 of this 
     Act, is amended by adding at the end the following new item:

``Sec. 45H. Auxiliary power unit credit.''.


[[Page S1151]]


       (d) Effective Date.--The amendments made by this section 
     shall apply to auxiliary power units purchased and installed 
     for taxable years beginning after the date of the enactment 
     of this Act.

                  Subtitle F--Miscellaneous Provisions

     SEC. 5501. MOTOR FUEL TAX ENFORCEMENT ADVISORY COMMISSION.

       (a) Establishment.--There is established a Motor Fuel Tax 
     Enforcement Advisory Commission (in this section referred to 
     as the ``Commission'').
       (b) Function.--The Commission shall--
       (1) review motor fuel revenue collections, historical and 
     current;
       (2) review the progress of investigations;
       (3) develop and review legislative proposals with respect 
     to motor fuel taxes;
       (4) monitor the progress of administrative regulation 
     projects relating to motor fuel taxes;
       (5) review the results of Federal and State agency 
     cooperative efforts regarding motor fuel taxes;
       (6) review the results of Federal interagency cooperative 
     efforts regarding motor fuel taxes; and
       (7) evaluate and make recommendations regarding--
       (A) the effectiveness of existing Federal enforcement 
     programs regarding motor fuel taxes,
       (B) enforcement personnel allocation, and
       (C) proposals for regulatory projects, legislation, and 
     funding.
       (c) Membership.--
       (1) Appointment.--The Commission shall be composed of the 
     following representatives appointed by the Chairmen and the 
     Ranking Members of the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives:
       (A) At least 1 representative from each of the following 
     Federal entities: the Department of Homeland Security, the 
     Department of Transportation - Office of Inspector General, 
     the Federal Highway Administration, the Department of 
     Defense, and the Department of Justice.
       (B) At least 1 representative from the Federation of State 
     Tax Administrators.
       (C) At least 1 representative from any State department of 
     transportation.
       (D) 2 representatives from the highway construction 
     industry.
       (E) 5 representatives from industries relating to fuel 
     distribution -- refiners (2 representatives), distributors (1 
     representative), pipelines (1 representative), and terminal 
     operators (2 representatives).
       (F) 1 representative from the retail fuel industry.
       (G) 2 representatives from the staff of the Committee on 
     Finance of the Senate and 2 representatives from the staff of 
     the Committee on Ways and Means of the House of 
     Representatives.
       (2) Terms.--Members shall be appointed for the life of the 
     Commission.
       (3) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (4) Travel expenses.--Members shall serve without pay but 
     shall receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (5) Chairman.--The Chairman of the Commission shall be 
     elected by the members.
       (d) Funding.--Such sums as are necessary shall be available 
     from the Highway Trust fund for the expenses of the 
     Commission.
       (e) Consultation.--Upon request of the Commission, 
     representatives of the Department of the Treasury and the 
     Internal Revenue Service shall be available for consultation 
     to assist the Commission in carrying out its duties under 
     this section.
       (f) Obtaining Data.--The Commission may secure directly 
     from any department or agency of the United States, 
     information (other than information required by any law to be 
     kept confidential by such department or agency) necessary for 
     the Commission to carry out its duties under this section. 
     Upon request of the Commission, the head of that department 
     or agency shall furnish such nonconfidential information to 
     the Commission. The Commission shall also gather evidence 
     through such means as it may deem appropriate, including 
     through holding hearings and soliciting comments by means of 
     Federal Register notices.
       (g) Termination.--The Commission shall terminate after 
     September 30, 2009.

     SEC. 5502. NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE 
                   FINANCING COMMISSION.

       (a) Establishment.--There is established a National Surface 
     Transportation Infrastructure Financing Commission (in this 
     section referred to as the ``Commission''). The Commission 
     shall hold its first meeting within 90 days of the 
     appointment of the eighth individual to be named to the 
     Commission.
       (b) Function.--
       (1) In general.--The Commission shall--
       (A) make a thorough investigation and study of revenues 
     flowing into the Highway Trust Fund under current law, 
     including the individual components of the overall flow of 
     such revenues;
       (B) consider whether the amount of such revenues is likely 
     to increase, decline, or remain unchanged, absent changes in 
     the law, particularly by taking into account the impact of 
     possible changes in public vehicular choice, fuel use, or 
     travel alternatives that could be expected to reduce or 
     increase revenues into the Highway Trust Fund;
       (C) consider alternative approaches to generating revenues 
     for the Highway Trust Fund, and the level of revenues that 
     such alternatives would yield;
       (D) consider highway and transit needs and whether 
     additional revenues into the Highway Trust Fund, or other 
     Federal revenues dedicated to highway and transit 
     infrastructure, would be required in order to meet such 
     needs; and
       (E) study such other matters closely related to the 
     subjects described in the preceding subparagraphs as it may 
     deem appropriate.
       (2) Time frame of investigation and study.--The time frame 
     to be considered by the Commission shall extend through the 
     year 2015.
       (3) Preparation of report.--Based on such investigation and 
     study, the Commission shall develop a final report, with 
     recommendations and the bases for those recommendations, 
     indicating policies that should be adopted, or not adopted, 
     to achieve various levels of annual revenue for the Highway 
     Trust Fund and to enable the Highway Trust Fund to receive 
     revenues sufficient to meet highway and transit needs. Such 
     recommendations shall address, among other matters as the 
     Commission may deem appropriate--
       (A) what levels of revenue are required by the Federal 
     Highway Trust Fund in order for it to meet needs to--
       (i) maintain, and
       (ii) improve the condition and performance of the Nation's 
     highway and transit systems;
       (B) what levels of revenue are required by the Federal 
     Highway Trust Fund in order to ensure that Federal levels of 
     investment in highways and transit do not decline in real 
     terms; and
       (C) the extent, if any, to which the Highway Trust Fund 
     should be augmented by other mechanisms or funds as a Federal 
     means of financing highway and transit infrastructure 
     investments.
       (c) Membership.--
       (1) Appointment.--The Commission shall be composed of 15 
     members, appointed as follows:
       (A) 7 members appointed by the Secretary of Transportation, 
     in consultation with the Secretary of the Treasury.
       (B) 2 members appointed by the Chairman of the Committee on 
     Ways and Means of the House of Representatives.
       (C) 2 members appointed by the Ranking Minority Member of 
     the Committee on Ways and Means of the House of 
     Representatives.
       (D) 2 members appointed by the Chairman of the Committee on 
     Finance of the Senate.
       (E) 2 members appointed by the Ranking Minority Member of 
     the Committee on Finance of the Senate.
       (2) Qualifications.--Members appointed pursuant to 
     paragraph (1) shall be appointed from among individuals 
     knowledgeable in the fields of public transportation finance 
     or highway and transit programs, policy, and needs, and may 
     include representatives of interested parties, such as State 
     and local governments or other public transportation 
     authorities or agencies, representatives of the 
     transportation construction industry (including suppliers of 
     technology, machinery and materials), transportation labor 
     (including construction and providers), transportation 
     providers, the financial community, and users of highway and 
     transit systems.
       (3) Terms.--Members shall be appointed for the life of the 
     Commission.
       (4) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (5) Travel expenses.--Members shall serve without pay but 
     shall receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (6) Chairman.--The Chairman of the Commission shall be 
     elected by the members.
       (d) Staff.--The Commission may appoint and fix the pay of 
     such personnel as it considers appropriate.
       (e) Funding.--Funding for the Commission shall be provided 
     by the Secretary of the Treasury and by the Secretary of 
     Transportation, out of funds available to those agencies for 
     administrative and policy functions.
       (f) Staff of Federal Agencies.--Upon request of the 
     Commission, the head of any department or agency of the 
     United States may detail any of the personnel of that 
     department or agency to the Commission to assist in carrying 
     out its duties under this section.
       (g) Obtaining Data.--The Commission may secure directly 
     from any department or agency of the United States, 
     information (other than information required by any law to be 
     kept confidential by such department or agency) necessary for 
     the Commission to carry out its duties under this section. 
     Upon request of the Commission, the head of that department 
     or agency shall furnish such nonconfidential information to 
     the Commission. The Commission shall also gather evidence 
     through such means as it may deem appropriate, including 
     through holding hearings and soliciting comments by means of 
     Federal Register notices.
       (h) Report.--Not later than 2 years after the date of its 
     first meeting, the Commission shall transmit its final 
     report, including recommendations, to the Secretary of 
     Transportation, the Secretary of the Treasury, and the 
     Committee on Ways and Means of the House of Representatives, 
     the Committee on Finance of the Senate, the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, the Committee on

[[Page S1152]]

     Environment and Public Works of the Senate, and the Committee 
     on Banking, Housing, and Urban Affairs of the Senate.
       (i) Termination.--The Commission shall terminate on the 
     180th day following the date of transmittal of the report 
     under subsection (h). All records and papers of the 
     Commission shall thereupon be delivered to the Administrator 
     of General Services for deposit in the National Archives.

     SEC. 5503. TREASURY STUDY OF FUEL TAX COMPLIANCE AND 
                   INTERAGENCY COOPERATION.

       (a) In General.--Not later than January 31, 2006, the 
     Secretary of the Treasury shall submit to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives a report regarding fuel tax 
     enforcement which shall include the information and analysis 
     specified in subsections (b) and (c) and any other 
     information and recommendations the Secretary of the Treasury 
     may deem appropriate.
       (b) Audits.--With respect to audits conducted by the 
     Internal Revenue Service, the report required under 
     subsection (a) shall include--
       (1) the number and geographic distribution of audits 
     conducted annually, by fiscal year, between October 1, 2001, 
     and September 30, 2005;
       (2) the total volume involved for each of the taxable fuels 
     covered by such audits and a comparison to the annual 
     production of such fuels;
       (3) the staff hours and number of personnel devoted to the 
     audits per year; and
       (4) the results of such audits by year, including total tax 
     collected, total penalties collected, and number of referrals 
     for criminal prosecution.
       (c) Enforcement Activities.--With respect to enforcement 
     activities, the report required under subsection (a) shall 
     include--
       (1) the number and geographic distribution of criminal 
     investigations and prosecutions annually, by fiscal year, 
     between October 1, 2001, and September 30, 2005, and the 
     results of such investigations and prosecutions;
       (2) to the extent such investigations and prosecutions 
     involved other agencies, State or Federal, a breakdown by 
     agency of the number of joint investigations involved;
       (3) an assessment of the effectiveness of joint action and 
     cooperation between the Department of the Treasury and other 
     Federal and State agencies, including a discussion of the 
     ability and need to share information across agencies for 
     both civil and criminal Federal tax enforcement and 
     enforcement of State or Federal laws relating to fuels;
       (4) the staff hours and number of personnel devoted to 
     criminal investigations and prosecutions per year;
       (5) the staff hours and number of personnel devoted to 
     administrative collection of fuel taxes; and
       (6) the results of administrative collection efforts 
     annually, by fiscal year, between October 1, 2001, and 
     September 30, 2005.

     SEC. 5504. EXPANSION OF HIGHWAY TRUST FUND EXPENDITURE 
                   PURPOSES TO INCLUDE FUNDING FOR STUDIES OF 
                   SUPPLEMENTAL OR ALTERNATIVE FINANCING FOR THE 
                   HIGHWAY TRUST FUND.

       (a) In General.--From amounts available in the Highway 
     Trust Fund, there is authorized to be expended for 2 
     comprehensive studies of supplemental or alternative funding 
     sources for the Highway Trust Fund--
       (1) $1,000,000 to the Western Transportation Institute of 
     the College of Engineering at Montana State University for 
     the study and report described in subsection (b), and
       (2) $16,500,000 to the Public Policy Center of the 
     University of Iowa for the study and report described in 
     subsection (c).
       (b) Study of Funding Mechanisms.--Not later than December 
     31, 2006, the Western Transportation Institute of the College 
     of Engineering at Montana State University shall report to 
     the Secretary of the Treasury and the Secretary of 
     Transportation on a study of highway funding mechanisms of 
     other industrialized nations, an examination of the viability 
     of alternative funding proposals, including congestion 
     pricing, greater reliance on tolls, privatization of 
     facilities, and bonding for construction of added capacity, 
     and an examination of increasing the rates of motor fuels 
     taxes in effect on the date of the enactment of this Act, 
     including the indexation of such rates.
       (c) Study on Field Test of On-Board Computer Assessment of 
     Highway Use Taxes.--Not later than December 31, 2011, the 
     Public Policy Center of the University of Iowa shall direct, 
     analyze, and report to the Secretary of the Treasury and the 
     Secretary of Transportation on a long-term field test of an 
     approach to assessing highway use taxes based upon actual 
     mileage driven by a specific vehicle on specific types of 
     highways by use of an on-board computer--
       (1) which is linked to satellites to calculate highway 
     mileage traversed,
       (2) which computes the appropriate highway use tax for each 
     of the Federal, State, and local governments as the vehicle 
     makes use of the highways, and
       (3) the data from which is periodically downloaded by the 
     vehicle owner to a collection center for an assessment of 
     highway use taxes due in each jurisdiction traversed.The 
     components of the field test shall include 2 years for 
     preparation, including selection of vendors and test 
     participants, and 3-year testing period.

     SEC. 5505. TREASURY STUDY OF HIGHWAY FUELS USED BY TRUCKS FOR 
                   NON-TRANSPORTATION PURPOSES.

       (a) Study.--The Secretary of the Treasury shall conduct a 
     study regarding the use of highway motor fuel by trucks that 
     is not used for the propulsion of the vehicle. As part of 
     such study--
       (1) in the case of vehicles carrying equipment that is 
     unrelated to the transportation function of the vehicle--
       (A) the Secretary of the Treasury, in consultation with the 
     Secretary of Transportation, and with public notice and 
     comment, shall determine the average annual amount of tax 
     paid fuel consumed per vehicle, by type of vehicle, used by 
     the propulsion engine to provide the power to operate the 
     equipment attached to the highway vehicle, and
       (B) the Secretary of the Treasury shall review the 
     technical and administrative feasibility of exempting such 
     nonpropulsive use of highway fuels for the highway motor 
     fuels excise taxes,
       (2) in the case where non-transportation equipment is run 
     by a separate motor--
       (A) the Secretary of the Treasury shall determine the 
     annual average amount of fuel exempted from tax in the use of 
     such equipment by equipment type, and
       (B) the Secretary of the Treasury shall review issues of 
     administration and compliance related to the present-law 
     exemption provided for such fuel use, and
       (3) the Secretary of the Treasury shall--
       (A) estimate the amount of taxable fuel consumed by trucks 
     and the emissions of various pollutants due to the long-term 
     idling of diesel engines, and
       (B) determine the cost of reducing such long-term idling 
     through the use of plug-ins at truck stops, auxiliary power 
     units, or other technologies.
       (b) Report.--Not later than January 1, 2006, the Secretary 
     of the Treasury shall report the findings of the study 
     required under subsection (a) to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives.

     SEC. 5506. DELTA REGIONAL TRANSPORTATION PLAN.

       (a) Study.--The Delta Regional Authority shall conduct a 
     study of the transportation assets and needs in the States of 
     Alabama, Arkansas, Illinois, Kentucky, Louisiana, 
     Mississippi, Missouri, and Tennessee which comprise the Delta 
     region.
       (b) Regional Strategic Transportation Plan.--Upon 
     completion of the study required under subsection (a), the 
     Delta Regional Authority shall establish a regional strategic 
     transportation plan to achieve efficient transportation 
     systems in the Delta region. In developing the regional 
     strategic transportation plan, the Delta Regional Authority 
     shall consult with local planning and development districts, 
     local and regional governments, metropolitan planning 
     organizations, State transportation entities, and Federal 
     transportation agencies.
       (c) Elements of Study and Plan.--The study and plan under 
     this section shall include the following transportation modes 
     and systems: transit, rail, highway, interstate, bridges, 
     air, airports, waterways and ports.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Delta Regional Authority $1,000,000 
     to carry out the purposes of this section, to remain 
     available until expended.

     SEC. 5507. TREATMENT OF EMPLOYER-PROVIDED TRANSIT AND VAN 
                   POOLING BENEFITS.

       (a) In General.--Subparagraph (A) of section 132(f)(2) 
     (relating to limitation on exclusion) is amended by striking 
     ``$100'' and inserting ``$120''.
       (b) Inflation Adjustment Conforming Amendments.--The last 
     sentence of section 132(f)(6)(A) (relating to inflation 
     adjustment) is amended--
       (1) by striking ``2002'' and inserting ``2005'', and
       (2) by striking ``2001'' and inserting ``2004''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2004.

     SEC. 5508. STUDY OF INCENTIVES FOR PRODUCTION OF BIODIESEL.

       (a) Study.--The General Comptroller of the United States 
     shall conduct a study related to biodiesel fuels and the tax 
     credit for biodiesel fuels established under this Act. Such 
     study shall include--
       (1) an assessment on whether such credit provides 
     sufficient assistance to the producers of biodiesel fuel to 
     establish the fuel as a viable energy alternative in the 
     current market place,
       (2) an assessment on how long such credit or similar 
     subsidy would have to remain in effect before biodiesel fuel 
     can compete in the market place without such assistance,
       (3) a cost-benefit analysis of such credit, comparing the 
     cost of the credit in forgone revenue to the benefits of 
     lower fuel costs for consumers, increased profitability for 
     the biodiesel industry, increased farm income, reduced 
     program outlays from the Department of Agriculture, and the 
     improved environmental conditions through the use of 
     biodiesel fuel, and
       (4) an assessment on whether such credit results in any 
     unintended consequences for unrelated industries, including 
     the impact, if any, on the glycerin market.
       (b) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall report the findings of the study required under 
     subsection (a) to the Committee on Finance of the Senate and 
     the

[[Page S1153]]

     Committee on Ways and Means of the House of Representatives.

     SEC. 5509. REDUCTION OF EXPENDITURES FROM THE HIGHWAY TRUST 
                   FUND.

       The amount made available under titles I, II, III, and IV 
     of this Act shall be reduced on a pro rata basis, so that the 
     total of such reductions equals $214,000,000,000.

                      Subtitle G--Revenue Offsets

     PART I--LIMITATION ON EXPENSING CERTAIN PASSENGER AUTOMOBILES

     SEC. 5601. EXPANSION OF LIMITATION ON DEPRECIATION OF CERTAIN 
                   PASSENGER AUTOMOBILES.

       (a) In General.--Section 179(b) (relating to limitations) 
     is amended by adding at the end the following new paragraph:
       ``(6) Limitation on cost taken into account for certain 
     passenger vehicles.--
       ``(A) In general.--The cost of any sport utility vehicle 
     for any taxable year which may be taken into account under 
     this section shall not exceed $25,000.
       ``(B) Sport utility vehicle.--For purposes of subparagraph 
     (A)--
       ``(i) In general.--The term `sport utility vehicle' means 
     any 4-wheeled vehicle which--

       ``(I) is manufactured primarily for use on public streets, 
     roads, and highways,
       ``(II) is not subject to section 280F, and
       ``(III) is rated at not more than 14,000 pounds gross 
     vehicle weight.

       ``(ii) Certain vehicles excluded.--Such term does not 
     include any vehicle which--

       ``(I) does not have the primary load carrying device or 
     container attached,
       ``(II) has a seating capacity of more than 12 individuals,
       ``(III) is designed for more than 9 individuals in seating 
     rearward of the driver's seat,
       ``(IV) is equipped with an open cargo area, or a covered 
     box not readily accessible from the passenger compartment, of 
     at least 72.0 inches in interior length, or
       ``(V) has an integral enclosure, fully enclosing the driver 
     compartment and load carrying device, does not have seating 
     rearward of the driver's seat, and has no body section 
     protruding more than 30 inches ahead of the leading edge of 
     the windshield.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after February 2, 
     2004.
       Sec. 5612. Section 9053(b) is amended by adding at the end 
     the following new paragraph:
       ``(6) The Secretary shall transfer to the Highway Trust 
     Fund an amount equal to $6 billion total to terminate at the 
     end of fiscal year 2009.''
                                 ______
                                 
  SA 2474. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROHIBITION OF ISSUANCE OF DRIVER'S LICENSES TO 
                   ILLEGAL ALIENS.

       (a) Withholding of Funds for Noncompliance.--The Secretary 
     of Transportation shall withhold 1 per cent of the amount 
     required to be apportioned to any State under this Act on the 
     first day of each fiscal year after the second fiscal year 
     beginning after September 30, 2004, if such State does not 
     prohibit by statute, regulation, or executive order issuance 
     of a State driver's license or identification card to aliens 
     who do not present valid documentation of lawful presence in 
     the United States as determined by the Immigration and 
     Nationality Act (8 U.S.C. 1001 et seq.).
       (b) Effect of Withholding of Funds.--Any funds recovered 
     due to a reduction in State funding in accordance with 
     subsection (a) shall be redistributed amongst the States that 
     are in compliance with this section in accordance with the 
     formulas set forth in this Act, calculated without taking 
     into account the States that have violated this section.
       (c) The Bureau of Immigration and Customs Enforcement of 
     the Department of Homeland Security shall issue a list of 
     documents or combination of documents establishing legal 
     presence in the United States by September 30, 2004. The 
     Secretary shall utilize such list for the purpose of 
     determinations of compliance with subsection (a).
                                 ______
                                 
  SA 2475. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of title IV, add the following:

               Subtitle G--Immigration Related Provisions

     SEC. 4701. PROHIBITION OF EMPLOYMENT OF ILLEGAL ALIENS ON 
                   FEDERALLY FUNDED TRANSPORTATION PROJECTS.

       (a) In General.--No funds authorized to be appropriated by 
     this Act may be used to hire, retain, or compensate any alien 
     who is not in lawful status, as determined under the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.), for 
     performing work on any projects authorized or funded by this 
     Act.
       (b) Enforcement.--
       (1) Fine.--Any person or entity who violates subsection (a) 
     shall be subject to a fine of $100,000 per violation.
       (2) Exception.--No person or entity may be fined in 
     accordance with paragraph (1) if that person or entity 
     utilizes the basic pilot program for employment eligibility 
     confirmation established by title IV of Public Law 104-208 (8 
     U.S.C. 1324a note) to confirm the eligibility of the alien 
     for employment and the employment eligibility confirmation 
     system reports represent that the alien is eligible for 
     employment.
       (3) Immigration enforcement account.--Any fines collected 
     under paragraph (1) shall be deposited in the Immigration 
     Enforcement Account established under section 280(b) of the 
     Immigration and Nationality Act (8 U.S.C. 1330(b)) and made 
     available for immigration enforcement activities described in 
     clauses (i) and (ii) of section 280(b)(3)(A) of that Act (8 
     U.S.C. 1330(b)(3)(A)(i) and (ii)) within the interior of the 
     United States and for the costs of operation and 
     modernization of the employment eligibility confirmation 
     pilot programs established by title IV of Public Law 104-208 
     (8 U.S.C. 1324a note).
       (4) Effective date.--This subsection shall take effect in a 
     State on the date on which the operation of the basic pilot 
     program for employment eligibility confirmation referred to 
     in paragraph (2) is expanded to such State.
                                 ______
                                 
  SA 2476. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROHIBITION OF ISSUANCE OF DRIVERS LICENSES TO 
                   ILLEGAL ALIENS.

       (a) Withholding of Funds for Noncompliance.--The Secretary 
     of Transportation shall withhold 1 per cent of the amount 
     required to be apportioned to any State under this Act on the 
     first day of each fiscal year after the second fiscal year 
     beginning after September 30, 2004, if such State does not 
     prohibit by statute, regulation, or executive order issuance 
     of a State driver's license or identification card to aliens 
     who do not present valid documentation of lawful presence in 
     the United States as determined by the Immigration and 
     Nationality Act (8 U.S.C. 1101 et seq.).
       (b) Effect of Withholding of Funds.--Any funds recovered 
     due to a reduction in State funding in accordance with 
     subsection (a) shall be redistributed amongst the States that 
     are in compliance with this section in accordance with the 
     formulas set forth in this Act, calculated without taking 
     into account the States that have violated this section.
       (c) The Bureau of Immigration and Customs Enforcement of 
     the Department of Homeland Security shall issue a list of 
     documents or combinations of documents establishing a legal 
     presence in the United States by September 30, 2004. The 
     Secretary shall utilize such list for the purpose of 
     determining compliance with subsection (a).

     SEC. __. PROHIBITION OF EMPLOYMENT OF ILLEGAL ALIENS ON 
                   FEDERALLY FUNDED TRANSPORTATION PROJECTS.

       (a) In General.--No funds authorized to be appropriated by 
     this Act may be used to hire, retain, or compensate any alien 
     who is not in lawful status, as determined under the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.), for 
     performing work on any projects authorized or funded by this 
     Act.
       (b) Enforcement.--
       (1) Fine.--Any person or entity who violates subsection (a) 
     shall be subject to a fine of $100,000 per violation.
       (2) Exception.--No person or entity may be fined in 
     accordance with paragraph (1) if that person or entity 
     utilizes the basic pilot program for employment eligibility 
     confirmation established by title IV of Public Law 104-208 (8 
     U.S.C. 1324a note) to confirm the eligibility of the alien 
     for employment and the employment eligibility confirmation 
     system reports represent that the alien is eligible for 
     employment.
       (3) Immigration enforcement account.--Any fines collected 
     under paragraph (1) shall be deposited in the Immigration 
     Enforcement Account established under section 280(b) of the 
     Immigration and Nationality Act (8 U.S.C. 1330(b)) and made 
     available for immigration enforcement activities described in 
     clauses (i) and (ii) of section 280(b)(3)(A) of that Act (8 
     U.S.C. 1330(b)(3)(A)(i) and (ii)) within the interior of the 
     United States and for the costs of operation and 
     modernization of the employment eligibility confirmation 
     pilot programs established by title IV of Public Law 104-208 
     (8 U.S.C. 1324a note).
       (4) Effective date.--This subsection shall take effect in a 
     State on the date on which the operation of the basic pilot 
     program for employment eligibility confirmation referred to 
     in paragraph (2) is expanded to such State.
                                 ______
                                 
  SA 2477. Mr. SESSIONS submitted an amendment intended to be proposed 
to

[[Page S1154]]

amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of title IV, add the following:

               Subtitle G--Immigration Related Provisions

     SEC. 4701. PROHIBITION OF ISSUANCE OF DRIVERS LICENSES TO 
                   ILLEGAL ALIENS.

       (a) Withholding of Funds for Noncompliance.--The Secretary 
     of Transportation shall withhold 1 per cent of the amount 
     required to be apportioned to any State under this Act on the 
     first day of each fiscal year after the second fiscal year 
     beginning after September 30, 2004, if such State permits by 
     statute, regulation, or executive order issuance of a State's 
     driver's license or identification card to aliens who do not 
     present valid documentation of lawful presence in the United 
     States as determined by the Immigration and Nationality Act 
     (8 U.S.C. 1101 et seq.).
       (b) Effect of Withholding of Funds.--Any funds recovered 
     due to a reduction in State funding in accordance with 
     subsection (a) shall be redistributed amongst the States that 
     are in compliance with this section in accordance with the 
     formulas set forth in this Act, calculated without taking 
     into account the States that have violated this section.
       (c) The Bureau of Immigration and Customs Enforcement of 
     the Department of Homeland Security shall issue a list of 
     documents or combinations of documents establishing legal 
     presence in the United States by September 30, 2004. The 
     Secretary shall utilize such list for the purpose of 
     determinations of compliance with subsection (a).

     SEC. 4702. PROHIBITION OF EMPLOYMENT OF ILLEGAL ALIENS ON 
                   FEDERALLY FUNDED TRANSPORTATION PROJECTS.

       (a) In General.--No funds authorized to be appropriated by 
     this Act may be used to hire, retain, or compensate any alien 
     who is not in lawful status, as determined under the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.), for 
     performing work on any projects authorized or funded by this 
     Act.
       (b) Enforcement.--
       (1) Fine.--Any person or entity who violates subsection (a) 
     shall be subject to a fine of $100,000 per violation.
       (2) Exception.--No person or entity may be fined in 
     accordance with paragraph (1) if that person or entity 
     utilizes the basic pilot program for employment eligibility 
     confirmation established by title IV of Public Law 104-208 (8 
     U.S.C. 1324a note) to confirm the eligibility of the alien 
     for employment and the employment eligibility confirmation 
     system reports represent that the alien is eligible for 
     employment.
       (3) Immigration enforcement account.--Any fines collected 
     under paragraph (1) shall be deposited in the Immigration 
     Enforcement Account established under section 280(b) of the 
     Immigration and Nationality Act (8 U.S.C. 1330(b)) and made 
     available for immigration enforcement activities described in 
     clauses (i) and (ii) of section 280(b)(3)(A) of that Act (8 
     U.S.C. 1330(b)(3)(A)(i) and (ii)) within the interior of the 
     United States and for the costs of operation and 
     modernization of the employment eligibility confirmation 
     pilot programs established by title IV of Public Law 104-208 
     (8 U.S.C. 1324a note).
       (4) Effective date.--This subsection shall take effect in a 
     State on the date on which the operation of the basic pilot 
     program for employment eligibility confirmation referred to 
     in paragraph (2) is expanded to such State.
                                 ______
                                 
  SA 2478. Mr. BOND submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of subtitle D of title I, add the following:

     SEC. 1409. RENTED OR LEASED MOTOR VEHICLES.

       (a) In General.--Subchapter I of chapter 301 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 30106. Rented or leased motor vehicle safety and 
       responsibility

       ``(a) In General.--Provided that there is no negligence or 
     criminal wrongdoing on the part of the owner of a motor 
     vehicle, no such owner engaged in the trade or business of 
     renting or leasing motor vehicles may be held liable under 
     State law for harm caused by a person to himself or herself, 
     another person, or to property, which results or arises from 
     that person's use, operation, or possession of a rented or 
     leased motor vehicle, by reason of being the owner of such 
     motor vehicle.
       ``(b) Construction.--Subsection (a) shall not apply if such 
     owner does not maintain the required limits of financial 
     responsibility for such vehicle, as required by State law in 
     the State in which the vehicle is registered.
       ``(c) Applicability and Effective Date.--Notwithstanding 
     any other provision of law, this section shall apply with 
     respect to any action commenced on or after the date of 
     enactment of this section without regard to whether the harm 
     that is the subject of the action or the conduct that caused 
     the harm occurred before such date of enactment.
       ``(d) Definitions.--In this section:
       ``(1) Motor vehicle.--The term `motor vehicle' shall have 
     the meaning given the term under section 13102(14) of this 
     title.
       ``(2) Owner.--The term `owner' means a person who is--
       ``(A) a record or beneficial owner, lessor, or lessee of a 
     motor vehicle;
       ``(B) entitled to the use and possession of a motor vehicle 
     subject to a security interest in another person; or
       ``(C) a lessor, lessee, or bailee of a motor vehicle, in 
     the trade or business of renting or leasing motor vehicles, 
     having the use or possession of such motor vehicle, under a 
     lease, bailment, or otherwise.
       ``(3) Person.--The term `person' means any individual, 
     corporation, company, limited liability company, trust, 
     association, firm, partnership, society, joint stock company, 
     or any other entity.
       ``(4) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, the Northern 
     Mariana Islands, any other territory or possession of the 
     United States, or any political subdivision of any such 
     State, commonwealth, territory, or possession.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 301 of title 49, United States Code, is 
     amended by inserting after the item relating to section 30105 
     the following:

``30106. Rented or leased motor vehicle safety and responsibility.''.
                                 ______
                                 
  SA 2479. Mr. REED submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:
       (1) Not later than 90 days after enactment, the Secretary 
     of Homeland Security shall enter into a memorandum of 
     understanding with the Secretary to define and clarify the 
     roles and responsibilities of the department of 
     Transportation and Homeland Security as they relate to public 
     transportation security. Such memorandum of understanding 
     shall:
       (a) establish national security standards for public 
     transportation agencies;
       (b) establish funding priorities for Department of Homeland 
     Security grants to public transportation agencies; and
       (c) create a method of coordination with public 
     transportation agencies on security matters.
                                 ______
                                 
  SA 2480. Mrs. LINCOLN (for herself and Mr. Miller) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. __. SPECIAL EXEMPTION FOR VEHICLE WEIGHT LIMITS FOR 
                   SEASONAL SEED COTTON HAULERS.

       Section 127(a) of title 23, United States Code, is amended 
     by striking ``not to exceed 100 days annually.'' and 
     inserting the following: ``not to exceed 100 days annually. 
     States may allow, by special permit, the operation of 
     vehicles with a gross vehicle weight of up to 80,000 pounds 
     for the hauling of seed cotton during the harvest season, not 
     to exceed 180 days annually.''.
                                 ______
                                 
  SA 2481. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of subtitle F of title V, insert the following:

     SEC. __. CREDIT FOR MAINTENANCE OF RAILROAD TRACK;

       (a) Credit for Maintenance of Railroad Track.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45I. RAILROAD TRACK MAINTENANCE CREDIT.

       ``(a) General Rule.--For purposes of section 38, the 
     railroad track maintenance credit determined under this 
     section for the taxable year is 50 percent of the amount of 
     qualified railroad track maintenance expenditures paid or 
     incurred by an eligible taxpayer during the taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     shall not exceed the product of--
       ``(1) $20,000, and
       ``(2) the number of miles of railroad track owned or leased 
     by the taxpayer as of the close of the taxable year.

[[Page S1155]]

       ``(c) Qualified Railroad Track Maintenance Expenditures.--
     For purposes of this section, the term `qualified railroad 
     track maintenance expenditures' means expenditures (whether 
     or not otherwise chargeable to capital account) for 
     maintaining railroad track (including roadbed, bridges, and 
     related track structures) owned or leased as of January 1, 
     2004, by the taxpayer of Class II or Class III railroads (as 
     determined by the Surface Transportation Board).
       ``(d) Controlled Groups.--For purposes of subsection (b), 
     rules similar to the rules of paragraph (1) of section 41(f) 
     shall apply for purposes of this subsection.
       ``(e) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     railroad track, the basis of such track shall be reduced by 
     the amount of the credit so allowed.
       ``(f) Application of Section.--This section shall apply to 
     qualified railroad track maintenance expenditures paid or 
     incurred during taxable years beginning after December 31, 
     2003, and before January 1, 2009.
       ``(g) Eligible Taxpayer.--For purposes of this subsection, 
     the term `eligible taxpayer' means--
       ``(1) any person who transports property using the rail 
     facilities of the taxpayer or who furnishes railroad-related 
     property or services to the taxpayer, and
       ``(2) any Class II or Class III railroad.''.
       (2) Limitation on carryback.--Section 39(d) (relating to 
     transition rules), as amended by section 5453, is amended by 
     adding at the end the following new paragraph:
       ``(14) No carryback of railroad track maintenance credit 
     before effective date.--No portion of the unused business 
     credit for any taxable year which is attributable to the 
     railroad track maintenance credit determined under section 
     45G may be carried to a taxable year beginning before January 
     1, 2004.''.
       (3) Conforming amendments.--
       (A) Section 38(b) (relating to general business credit), as 
     amended by section 5253 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (18), by striking the period 
     at the end of paragraph (19) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(20) the railroad track maintenance credit determined 
     under section 45I(a).''.
       (B) Subsection (a) of section 1016 is amended by striking 
     ``and'' at the end of paragraph (27), by striking the period 
     at the end of paragraph (28) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(29) in the case of railroad track with respect to which 
     a credit was allowed under section 45I, to the extent 
     provided in section 45I(e).''.
       (4) Clerical amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by this 
     Act, is amended by inserting after the item relating to 
     section 45H the following new item:

``Sec. 45I. Railroad track maintenance credit.''.
       (5) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
       (b) Railroad Revitalization and Security Investment 
     Credit.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45J. RAILROAD REVITALIZATION AND SECURITY INVESTMENT 
                   CREDIT.

       ``(a) General Rule.--For purposes of section 38, the 
     railroad revitalization and security investment credit 
     determined under this section for the taxable year is the 
     amount of qualified project expenditures paid or incurred by 
     an eligible taxpayer during the taxable year.
       ``(b) Qualified Project Expenditures.--For purposes of this 
     section, the term `qualified project expenditures' means 
     expenditures (whether or not otherwise chargeable to capital 
     account) with respect to rail lines which are included in a 
     State rail plan (within the meaning of section 22101 of title 
     49, United States Code) for--
       ``(A) planning and environmental review,
       ``(B) rail line rehabilitation,
       ``(C) upgrades and development of rail lines,
       ``(D) projects for safety and security with respect to rail 
     lines,
       ``(E) passenger equipment acquisition with respect to rail 
     lines,
       ``(F) rail station improvement, and
       ``(G) intermodal facilities development.
     An expenditure shall not be a qualified project expenditure 
     unless there is a written agreement between a State and the 
     owner of the infrastructure improved by the expenditures 
     regarding the use and ownership of such infrastructure, 
     including compensation for such use and assurances regarding 
     the capacity of such infrastructure.
       ``(c) Limitations.--
       ``(1) In general.--The credit allowed under subsection (a) 
     shall not exceed 50 percent of the amount allocated to such 
     project under this subsection.
       ``(2) National limitation.--There is a railroad 
     revitalization and security investment credit limitation of 
     $167,000,000 for each calendar year.
       ``(3) Allocation of limitation.--The limitation under 
     paragraph (2) shall be allocated by the Secretary to each 
     State with a State rail plan (within the meaning of section 
     22101 of title 49, United States Code) based on the following 
     considerations:
       ``(A) the number of rail miles in active use in the State;
       ``(B) the number of rail cars loaded in the State;
       ``(C) the number of railroad and public road grade 
     crossings in the State;
       ``(D) the number of intercity passenger rail miles; and
       ``(E) the number of intercity passenger embarkations.
       ``(d) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means a taxpayer who is an employer 
     for purposes of the Railroad Retirement Act of 1974 and who 
     is a carrier for purposes of the Railway Labor Act (unless 
     such person is a commuter rail passenger transportation (as 
     defined in section 24102 of title 49, United States Code) 
     operator of a State or local authority (as defined in section 
     5302 of such title) or an Alaska railroad or it contractor).
       ``(e) Controlled Groups.--For purposes of subsection (b), 
     rules similar to the rules of paragraph (1) of section 41(f) 
     shall apply for purposes of this subsection.
       ``(f) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     railroad track, the basis of such track shall be reduced by 
     the amount of the credit so allowed.
       ``(g) Application of Section.--This section shall apply to 
     qualified railroad track maintenance expenditures paid or 
     incurred during taxable years beginning after December 31, 
     2003, and before January 1, 2009.
       ``(h) Credit Transferability.--
       ``(1) In general.--Any credit allowable under this section 
     may be transferred (but not more than once) as provided by 
     the Secretary, and the determination as to whether the credit 
     is allowable shall be made without regard to the tax-exempt 
     status of the transferor.
       ``(2) Minimum price for transfer.--No transfer shall be 
     allowed under this subsection unless the transferor receives 
     compensation for the credit transfer equal to at least 50 
     percent of the amount of credit transferred. The excess of 
     the amount of credit transferred over the compensation 
     received by the transferor for such transfer shall be 
     included in the gross income of the transferee.''.
       (2) Limitation on carryback.--Section 39(d) (relating to 
     transition rules), as amended by subsection (a), is amended 
     by adding at the end the following new paragraph:
       ``(16) No carryback of section 45j credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 45J(a) may be carried back to a taxable year 
     beginning on or before the date of the enactment of section 
     45J.''.
       (3) Conforming amendments.--
       (A) Section 38(b) (relating to general business credit), as 
     amended by subsection (a), is amended by striking ``plus'' at 
     the end of paragraph (19), by striking the period at the end 
     of paragraph (20) and inserting ``, plus'', and by adding at 
     the end the following new paragraph:
       ``(21) the railroad revitalization and security investment 
     credit determined under section 45J(a).''.
       (B) Subsection (a) of section 1016 is amended by striking 
     ``and'' at the end of paragraph (28), by striking the period 
     at the end of paragraph (29) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(30) in the case of qualified projects with respect to 
     which a credit was allowed under section 45J, to the extent 
     provided in section 45J(f).''.
       (4) Clerical amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by 
     subsection (a), is amended by inserting after the item 
     relating to section 45I the following new item:

``Sec. 45J. Railroad revitalization and security investment credit.''.
       (5) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.

     SEC. __. CONSISTENT AMORTIZATION OF PERIODS FOR INTANGIBLES.

       (a) Start-Up Expenditures.--
       (1) Allowance of deduction.--Paragraph (1) of section 
     195(b) (relating to start-up expenditures) is amended to read 
     as follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection with respect to any start-up 
     expenditures--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the active trade or business begins in 
     an amount equal to the lesser of--
       ``(i) the amount of start-up expenditures with respect to 
     the active trade or business, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such start-up expenditures exceed $50,000, and
       ``(B) the remainder of such start-up expenditures shall be 
     allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the active trade or 
     business begins.''.
       (2) Conforming amendment.--Subsection (b) of section 195 is 
     amended by striking ``Amortize'' and inserting ``Deduct'' in 
     the heading.
       (b) Organizational Expenditures.--Subsection (a) of section 
     248 (relating to organizational expenditures) is amended to 
     read as follows:
       ``(a) Election to Deduct.--If a corporation elects the 
     application of this subsection (in

[[Page S1156]]

     accordance with regulations prescribed by the Secretary) with 
     respect to any organizational expenditures--
       ``(1) the corporation shall be allowed a deduction for the 
     taxable year in which the corporation begins business in an 
     amount equal to the lesser of--
       ``(A) the amount of organizational expenditures with 
     respect to the taxpayer, or
       ``(B) $5,000, reduced (but not below zero) by the amount by 
     which such organizational expenditures exceed $50,000, and
       ``(2) the remainder of such organizational expenditures 
     shall be allowed as a deduction ratably over the 180-month 
     period beginning with the month in which the corporation 
     begins business.''.
       (c) Treatment of Organizational and Syndication Fees or 
     Partnerships.--
       (1) In general.--Section 709(b) (relating to amortization 
     of organization fees) is amended by redesignating paragraph 
     (2) as paragraph (3) and by amending paragraph (1) to read as 
     follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenses--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the partnership begins business in an 
     amount equal to the lesser of--
       ``(i) the amount of organizational expenses with respect to 
     the partnership, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such organizational expenses exceed $50,000, and
       ``(B) the remainder of such organizational expenses shall 
     be allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the partnership begins 
     business.
       ``(2) Dispositions before close of amortization period.--In 
     any case in which a partnership is liquidated before the end 
     of the period to which paragraph (1)(B) applies, any deferred 
     expenses attributable to the partnership which were not 
     allowed as a deduction by reason of this section may be 
     deducted to the extent allowable under section 165.''.
       (2) Conforming amendment.--Subsection (b) of section 709 is 
     amended by striking ``Amortization'' and inserting 
     ``Deduction'' in the heading.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 2482. Mr. TALENT (for himself and Mr. Wyden) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1298, after line 24, add insert the following:

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

     SEC. 5671. TAX-EXEMPT FINANCING OF HIGHWAY PROJECTS AND RAIL-
                   TRUCK TRANSFER FACILITIES.

       (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
     section 142 (relating to exempt facility bond) is amended by 
     striking ``or'' at the end of paragraph (12), by striking the 
     period at the end of paragraph (13), and by adding at the end 
     the following:
       ``(14) qualified highway facilities, or
       ``(15) qualified surface freight transfer facilities.''.
       (b) Qualified Highway Facilities and Qualified Surface 
     Freight Transfer Facilities.--Section 142 is amended by 
     adding at the end the following:
       ``(l) Qualified Highway and Surface Freight Transfer 
     Facilities.--
       ``(1) Qualified highway facilities.--For purposes of 
     subsection (a)(14), the term `qualified highway facilities' 
     means--
       ``(A) any surface transportation project which receives 
     Federal assistance under title 23, United States Code (as in 
     effect on the date of the enactment of this subsection), or
       ``(B) any project for an international bridge or tunnel for 
     which an international entity authorized under Federal or 
     State law is responsible and which receives Federal 
     assistance under such title 23.
       ``(2) Qualified surface freight transfer facilities.--For 
     purposes of subsection (a)(15), the term `qualified surface 
     freight transfer facilities' means facilities for the 
     transfer of freight from truck to rail or rail to truck 
     (including any temporary storage facilities directly related 
     to such transfers) which receives Federal assistance under 
     either title 23 or title 49, United States Code (as in effect 
     on the date of the enactment of this subsection).
       ``(3) Aggregate face amount of tax-exempt financing for 
     facilities.--
       ``(A) In general.--An issue shall not be treated as an 
     issue described in subsection (a)(14) or (a)(15) if the 
     aggregate face amount of bonds issued by any State pursuant 
     thereto (when added to the aggregate face amount of bonds 
     previously so issued) exceeds $15,000,000,000.
       ``(B) Allocation by secretary of transportation.--The 
     Secretary of Transportation shall allocate the amount 
     described in subparagraph (A) among eligible projects 
     described in subsections (a)(14) and (a)(15) in such manner 
     as the Secretary determines appropriate.''.
       (c) Exemption From General State Volume Caps.--Paragraph 
     (3) of section 146(g) of the Internal Revenue Code of 1986 
     (relating to exception for certain bonds) is amended by 
     striking ``or (13)'' and all that follows through the end of 
     the paragraph and inserting ``(13), (14), or (15) of section 
     142(a), and''.
       (d) Effective Date.--The amendments made by this section 
     apply to bonds issued after the date of the enactment of this 
     Act.

     SEC. 5672. ADDITION OF VACCINES AGAINST HEPATITIS A TO LIST 
                   OF TAXABLE VACCINES.

       (a) In General.--Section 4132(a)(1) (defining taxable 
     vaccine) is amended by redesignating subparagraphs (I), (J), 
     (K), and (L) as subparagraphs (J), (K), (L), and (M), 
     respectively, and by inserting after subparagraph (H) the 
     following new subparagraph:
       ``(I) Any vaccine against hepatitis A.''.
       (b) Conforming Amendment.--Section 9510(c)(1)(A) is amended 
     by striking ``October 18, 2000'' and inserting ``the date of 
     the enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2004''.
       (c) Effective Date.--
       (1) Sales, etc.--The amendments made by this section shall 
     apply to sales and uses on or after the first day of the 
     first month which begins more than 4 weeks after the date of 
     the enactment of this Act.
       (2) Deliveries.--For purposes of paragraph (1) and section 
     4131 of the Internal Revenue Code of 1986, in the case of 
     sales on or before the effective date described in such 
     paragraph for which delivery is made after such date, the 
     delivery date shall be considered the sale date.

     SEC. 5674. ADDITION OF VACCINES AGAINST INFLUENZA TO LIST OF 
                   TAXABLE VACCINES.

       (a) In General.--Section 4132(a)(1) (defining taxable 
     vaccine), as amended by section 5673 of this Act, is amended 
     by adding at the end the following new subparagraph:
       ``(N) Any trivalent vaccine against influenza.''.
       (b) Effective Date.--
       (1) Sales, etc.--The amendment made by this section shall 
     apply to sales and uses on or after the later of--
       (A) the first day of the first month which begins more than 
     4 weeks after the date of the enactment of this Act, or
       (B) the date on which the Secretary of Health and Human 
     Services lists any vaccine against influenza for purposes of 
     compensation for any vaccine-related injury or death through 
     the Vaccine Injury Compensation Trust Fund.
       (2) Deliveries.--For purposes of paragraph (1) and section 
     4131 of the Internal Revenue Code of 1986, in the case of 
     sales on or before the effective date described in such 
     paragraph for which delivery is made after such date, the 
     delivery date shall be considered the sale date.

     SEC. 5675. EXTENSION OF AMORTIZATION OF INTANGIBLES TO SPORTS 
                   FRANCHISES.

       (a) In General.--Section 197(e) (relating to exceptions to 
     definition of section 197 intangible) is amended by striking 
     paragraph (6) and by redesignating paragraphs (7) and (8) as 
     paragraphs (6) and (7), respectively.
       (b) Conforming Amendments.--
       (1)(A) Section 1056 (relating to basis limitation for 
     player contracts transferred in connection with the sale of a 
     franchise) is repealed.
       (B) The table of sections for part IV of subchapter O of 
     chapter 1 is amended by striking the item relating to section 
     1056.
       (2) Section 1245(a) (relating to gain from disposition of 
     certain depreciable property) is amended by striking 
     paragraph (4).
       (3) Section 1253 (relating to transfers of franchises, 
     trademarks, and trade names) is amended by striking 
     subsection (e).
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     acquired after the date of the enactment of this Act.
       (2) Section 1245.--The amendment made by subsection (b)(2) 
     shall apply to franchises acquired after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 2483. Mr. LEIBERMAN submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 54 line 11, insert after the word census, ``vehicle 
     miles traveled per lane mile in excess of 4,000 in the year 
     2001.''
                                 ______
                                 
  SA 2484. Mr. LIEBERMAN (for himself and Mr. Dodd) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. HIGH LEVEL OF SERVICE BONUS.

       (a) In General.--Amounts made available for projects under 
     sections 103, 133, 144, and 149 of title 23, United States 
     Code, shall be apportioned to the States as follows:

[[Page S1157]]

       (1) \1/3\ in the ratio that--
       (A) the population density of each State that has a 
     population of over 250 residents per square mile; bears to
       (B) the population density of a State that has a population 
     of 250 residents per square mile;
       (2) \1/3\ in the ratio that--
       (A) the vehicle miles traveled per lane mile in each State 
     in which such ratio exceeds the ratio of total vehicle miles 
     traveled for the States to the total lane miles of the 
     States; bears to
       (B) the ration of total vehicle miles traveled for the 
     States to the total lane miles of the States; and
       (3) \1/3\ in the ratio that--
       (A) the funding apportioned to each State for projects 
     eligible under section 144 of title 23, United States Code, 
     that exceeds the average of such funds apportioned; bears to
       (B) the total of such funds apportioned to the States.
       (b) Minimum State Share.--The minimum share apportioned to 
     a State under paragraphs (1) and (2) of subsection (a) shall 
     be at least \1/2\ of 1 percent.
       (c) Maximum Federal Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     maximum Federal share payable for projects funded under this 
     program shall not exceed 80 percent.
       (2) Exception.--The maximum Federal share payable for 
     projects on the Interstate system shall not exceed 90 
     percent.
       (d) Equity Bonus.--The calculation and distribution of 
     funds under section 105 shall not be adjusted as a result of 
     the allocations of funds under this section.
       (e) Funding.--There is authorized to be appropriated to 
     carry out this section $1,000,000,000 for each fiscal year.
                                 ______
                                 
  SA 2485. Mr. HOLLINGS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 780, lines 21 and 22, strike ``shall consider the 
     prescription of'' and insert ``shall prescribe''.
                                 ______
                                 
  SA 2486. Mr. LIEBERMAN (for himself and Mr. Dodd) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. LEVEL OF SERVICE BONUS.

       (a) In General.--Amounts made available for projects under 
     sections 103, 133, 144, and 149 of title 23, United States 
     Code, shall be apportioned to the States as follows:
       (1) \1/3\ in the ratio that--
       (A) the population density of each State; bears to
       (B) the population density of the State with the least 
     population density;
       (2) \1/3\ in the ratio that--
       (A) the vehicle miles traveled per lane mile in each State; 
     bears to
       (B) the State with the least such ratio; and
       (3) \1/3\ in the ratio that--
       (A) the funding apportioned to each State for projects 
     eligible under section 144 of title 23, United States Code; 
     bears to
       (B) the total of such funds apportioned to the States.
       (b) Minimum State Share.--The minimum share apportioned to 
     a State under paragraphs (1) and (2) of subsection (a) shall 
     be at least \1/2\ of 1 percent.
       (c) Maximum Federal Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     maximum Federal share payable for projects funded under this 
     program shall not exceed 80 percent.
       (2) Exception.--The maximum Federal share payable for 
     projects on the Interstate system shall not exceed 90 
     percent.
       (d) Equity Bonus.--The calculation and distribution of 
     funds under section 105 shall not be adjusted as a result of 
     the allocations of funds under this section.
       (e) Funding.--There is authorized to be appropriated to 
     carry out this section $1,000,000,000 for each fiscal year.
                                 ______
                                 
  SA 2487. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 489, after line 23, add the following:

     SEC. 21__. TRANSPORTATION TECHNOLOGY INNOVATION AND 
                   DEMONSTRATION PROGRAM.

       (a) In General.--Section 5117(b)(3) of the Transportation 
     Equity Act for the 21st Century (112 Stat. 449; 112 Stat. 
     864; 115 Stat. 2330) is amended--
       (1) in subparagraph (B)--
       (A) in clause (i)--
       (i) in the first sentence--

       (I) by striking ``Build an'' and inserting ``Build or 
     integrate an''; and
       (II) by striking ``2,000,000'' and inserting ``2,500,000''; 
     and

       (ii) in the second sentence--

       (I) by striking ``300,000 and that'' and inserting 
     ``300,000,''; and
       (II) by inserting before the period at the end the 
     following: ``, and includes major transportation corridors 
     serving that metropolitan area'';

       (B) in clause (ii), by striking all that follows ``will 
     be'' and inserting ``reinvested in the intelligent 
     transportation infrastructure system.'';
       (C) by striking clause (iii); and
       (D) by redesignating clauses (iv) and (v) as clauses (iii) 
     and (iv), respectively;
       (2) in subparagraph (C)(ii), by striking ``July 1, 2002'' 
     and inserting ``the date that is 180 days after the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003'';
       (3) in subparagraph (E), by striking clause (ii) and 
     inserting the following:
       ``(ii) The term ``follow-on deployment areas'' means the 
     metropolitan areas of Albany, Atlanta, Austin, Baltimore, 
     Birmingham, Boston, Charlotte, Chicago, Cleveland, Columbus, 
     Dallas/Ft. Worth, Denver, Detroit, Greensboro, Hartford, 
     Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, 
     Los Angeles, Louisville, Miami, Milwaukee, Minneapolis-St. 
     Paul, Nashville, New Orleans, New York/Northern New Jersey, 
     Norfolk, Northern Kentucky/Cincinnati, Oklahoma City, 
     Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, 
     Providence, Raleigh, Richmond, Sacramento, Salt Lake, San 
     Diego, San Francisco, San Jose, St. Louis, Seattle, Tampa, 
     Tucson, Tulsa, and Washington, District of Columbia.'';
       (4) in subparagraph (F)--
       (A) by striking ``Of the amounts'' and inserting the 
     following:
       ``(i) This act.--Of the amounts''; and
       (B) by adding at the end the following:
       ``(ii) SAFETEA.--Of the amounts made available by section 
     1101(5) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003 for fiscal years 2004 
     through 2009, $5,000,000 for each fiscal year shall be made 
     available by the Secretary to carry out this paragraph.
       ``(iii) Availability; no reduction or setaside.--Amounts 
     made available by this subparagraph--

       ``(I) shall remain available until expended; and
       ``(II) shall not be subject to any reduction or 
     setaside.''; and

       (5) by adding at the end the following:
       ``(H) Use of rights-of-way.--
       ``(i) In general.--An intelligent transportation system 
     project described in paragraph (3) or (6) that involves 
     privately owned intelligent transportation system components 
     and is carried out using funds made available from the 
     Highway Trust Fund shall not be subject to any law (including 
     a regulation) of a State or political subdivision of a State 
     prohibiting or regulating commercial activities in the 
     rights-of-way of a highway for which Federal-aid highway 
     funds have been used for planning, design, construction, or 
     maintenance, if the Secretary of Transportation determines 
     that such use is in the public interest.
       ``(ii) Effect of subparagraph.--Nothing in this 
     subparagraph affects the authority of a State or political 
     subdivision of a State to regulate highway safety.''.
       (b) Conforming Amendment.--Section 5204(k) of the 
     Transportation Equity Act for the 21st Century (112 Stat. 
     453) is amended by striking subsection (k) (112 Stat. 2681-
     478).
                                 ______
                                 
  SA 2488. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 396, line 4, strike ``$40,000,000'' and insert 
     ``$50,000,000''.
       On page 396, line 5, strike ``$45,000,000'' and insert 
     ``$55,000,000''.

       On page 403, in the analysis for chapter 5 of title 23, 
     United States Code (as added by section 2101(a)), strike the 
     item relating to section 511 and insert the following:
``511. University bridge research centers.
``512. Multistate corridor operations and management.

       On page 475, strike lines 15 and 16 and insert the 
     following:

     ``Sec. 511. University bridge research centers

       ``(a) In General.--The Secretary shall establish and 
     implement a university bridge research center program in 
     accordance with this section.
       ``(b) Purposes.--The Secretary, in coordination with 
     nonprofit institutions of higher learning, shall encourage 
     and promote specific research on--
       ``(1) advanced highway bridge materials and systems for 
     economical, rapid, and durable repair, replacement, and 
     protection of highway bridges; and
       ``(2) technology to monitor and evaluate bridge damage and 
     deterioration to significantly extend the useful life of 
     highway bridges.
       ``(c) Bridge Centers.--The Secretary shall make grants to 
     nonprofit institutions of

[[Page S1158]]

     higher learning to establish and operate university bridge 
     research centers.
       ``(d) Selection of Grant Recipients.--
       ``(1) Applications.--To be eligible to receive a grant 
     under this section, a nonprofit institution of higher 
     learning shall submit to the Secretary an application in such 
     form and containing such information as the Secretary may 
     require.
       ``(2) Selection criteria.--
       ``(A) In general.--Except as otherwise provided by 
     subparagraph (B), the Secretary shall select each recipient 
     of a grant under this section through a competitive process 
     on the basis of--
       ``(i) the demonstrated research and development resources 
     available to the recipient to carry out this section;
       ``(ii) the capability of the recipient to provide 
     leadership in making national and regional contributions to 
     the solution of immediate and long-range bridge deterioration 
     and structure problems;
       ``(iii) the demonstrated commitment by the recipient of at 
     least $200,000 in regularly budgeted institutional amounts 
     each year to support ongoing bridge research and education 
     programs;
       ``(iv) the demonstrated ability of the recipient to 
     disseminate results of bridge transportation research and 
     education programs through a statewide or regionwide program;
       ``(v) the demonstrated ability of the recipient to partner 
     with other institutions that have highway bridge research 
     expertise;
       ``(vi) the demonstrated ability of the recipient to conduct 
     analysis, laboratory testing, and field verification of 
     bridge design through a record of demonstration projects with 
     State transportation departments and private, public and 
     quasi-public bridge authorities;
       ``(vii) the demonstrated record of the recipient in 
     transferring technology to practitioners;
       ``(viii) the demonstrated record of the recipient in 
     testing full-scale bridge components in laboratory facilities 
     and implementing results in design changes and field 
     verification; and
       ``(ix) the strategic plan that the recipient proposes to 
     carry out under the grant.
       ``(B) Preference.--Preference shall be given to nonprofit 
     institutions of higher learning located in the 10 States with 
     the worst deficiencies in highway bridges, as ranked by the 
     2002 Federal Highway Administration National Bridge 
     Inventory.
       ``(e) Activities.--A Federal Highway Administration 
     university bridge transportation center that receives a grant 
     under this section shall conduct--
       ``(1) basic and applied bridge research, the products of 
     which are judged by peers or other experts in the field to 
     advance the body of knowledge in bridge longevity;
       ``(2) an education program that includes multidisciplinary 
     course work and student participation in research; and
       ``(3) an ongoing program of technology transfer that makes 
     research results available to potential users in a form that 
     can be implemented, used, or otherwise applied.
       ``(f) Federal Share.--
       ``(1) In general.--The Federal share of the costs of 
     activities carried out using a grant made under this section 
     shall be 50 percent.
       ``(2) Non-federal share.--The non-Federal share may include 
     funds provided to a recipient under section 503, 504(b), or 
     505 of title 23.
       ``(g) Program Coordination.--
       ``(1) Coordination.--The Secretary shall--
       ``(A) coordinate the research, education, training, and 
     technology transfer activities that grant recipients carry 
     out under this section; and
       ``(B) establish a clearinghouse for dissemination of the 
     results of the research.
       ``(2) Annual review and evaluation.--At least annually the 
     Secretary shall review and evaluate programs carried out by 
     grant recipients.
       ``(3) Funding limitation.--The Secretary shall use not more 
     than 1 percent of amounts made available from Government 
     sources to carry out this subsection.
       ``(h) Limitation on Availability of Funds.--Funds made 
     available to carry out this section shall remain available 
     for obligation for 2 years after the last day of the fiscal 
     year for which the funds are made available.
       ``(i) Number and Amount of Grants.--For each of fiscal 
     years 2005, 2006, 2007, 2008, and 2009, the Secretary shall 
     make a grant of $2,000,000 to each of 5 nonprofit 
     institutions of higher education to conduct bridge 
     transportation research.

     ``Sec. 512. Multistate corridor operations and management

                                 ______
                                 
  SA 2489. Mr. WARNER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 346, before line 1, insert the following:
       (c) Addition.--
       (1) Designation.--There is designated as an addition to the 
     Appalachian development highway system under section 14501 of 
     title 40, United States Code, Segment B of the Coalfields 
     Expressway from Corridor B near Pound to Clintwood in 
     Virginia.
       (2) Conforming amendment.--Section 14501 of title 40, 
     United States Code, is amended in the second sentence by 
     striking ``not be more than'' and all that follows through 
     the period and insert ``not be more than 3,102 miles.''.
                                 ______
                                 
  SA 2490. Mr. WARNER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 346, before line 1, insert the following:
       (c) Addition.--
       (1) Designation.--There is designated as an addition to the 
     Appalachian development highway system under section 14501 of 
     title 40, United States Code, Segment B of the Coalfields 
     Expressway from Corridor B near Pound to Clintwood in 
     Virginia.
       (2) Subtraction.--The portion of Corridor H in Virginia 
     from the West Virginia State line to Interstate 81--
       (A) shall be subtracted from Corridor H; and
       (B) may be included on a map of that system only for the 
     purpose of continuity.
       (3) Conforming amendment.--Section 14501 of title 40, 
     United States Code, is amended in the second sentence by 
     striking ``not be more than'' and all that follows through 
     the period and insert ``not be more than 3,102 miles.''.
                                 ______
                                 
  SA 2491. Mrs. MURRAY (for herself, Ms. Collins, Mrs. Boxer, Ms. 
Cantwell, Mrs. Clinton, Mr. Cochran, Mr. Corzine, Mr. Edwards, Mrs. 
Feinstein, Mr. Kennedy, Mr. Lautenberg, Ms. Mikulski, Mr. Schumer, Ms. 
Snowe, and Mr. Stevens) submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 38, strike line 22 and all that follows 
     through page 39, line 6, and insert the following:
       (13) Infrastructure performance and maintenance program.--
     For carrying out the infrastructure performance and 
     maintenance program under section 139 of that title 
     $1,328,000,000 for fiscal year 2004.
       (14) Construction of ferry boats and ferry terminal 
     facilities.--For construction of ferry boats and ferry 
     terminal facilities under section 147 of that title, 
     $$150,000,000 for each of fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2492. Mrs. MURRAY (for herself, Ms. Collins, Mrs. Boxer, Ms. 
Cantwell, Mrs. Clinton, Mr. Cochran, Mr. Corzine, Mr. Edwards, Mrs. 
Feinstein, Mr. Kennedy, Mr. Lautenberg, Ms. Mikulski, Ms. Murkowski, 
Mr. Schumer, Ms. Snowe, and Mr. Stevens) submitted an amendment 
intended to be proposed by her to the bill S. 1072, to authorize funds 
for Federal-aid highways, highway safety programs, and transit 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       Beginning on page 80, strike line 7 and all that follows 
     through page 81, line 3, and insert the following:

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

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

     ``Sec. 147. Construction of ferry boats and ferry terminal 
       and maintenance facilities

       ``(a) In General.--The Secretary shall carry out a program 
     for construction of ferry boats and ferry terminal and 
     maintenance facilities in accordance with section 129(c).
       ``(b) Federal Share.--The Federal share of the cost of 
     construction of ferry boats and ferry terminals and 
     maintenance facilities under this section shall be 80 
     percent.
       ``(c) Allocation of Funds.--The Secretary shall give 
     priority in the allocation of funds under this section to 
     those ferry systems, and public entities responsible for 
     developing ferries, that--
       ``(1) carry the greatest number of passengers and vehicles;
       ``(2) carry the greatest number of passengers in passenger-
     only service; or
       ``(3) provide critical access to areas that are not well-
     served by other modes of surface transportation.
       ``(d) Set-Aside.--Of the amounts made available under 
     section 1101(a)(14) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, $112,000,000 for 
     each of fiscal years 2004 through 2009 shall be made 
     available to carry out this section.
       ``(e) Rule of Construction.--Notwithstanding any other 
     provision of law--
       ``(1) paragraph (13) of section 1101(a) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 shall be applied by substituting `$1,328,000,000' 
     for `$2,000,000,000'; and

[[Page S1159]]

       ``(2) paragraph (14) of section 1101(a) of that Act shall 
     be applied by substituting `$150,000,000' for 
     `$38,000,000'.''.
       (b) Conforming Amendments.--
       (1) Section 129(c) of title 23, United States Code, is 
     amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and maintenance'' after ``terminal''; and
       (B) in paragraph (3), by inserting ``or maintenance'' after 
     ``terminal'' each place it appears.
       (2) The analysis for subchapter I of chapter 1 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 147 and inserting the following:

``147. Construction of ferry boats and ferry terminal and maintenance 
              facilities.''.
       (3) Section 1064 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2005) is repealed.
                                 ______
                                 
  SA 2493. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 588, strike line 21 and all that follows 
     through page 589, line 2, and insert the following:
       (E) by amending subparagraph (C), as redesignated, to read 
     as follows:
       ``(C) capital projects to replace, rehabilitate, and 
     purchase buses and related equipment, including the 
     differential cost of purchasing alternative fuels (as defined 
     in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
     13211)), not to exceed the difference in purchasing costs 
     between conventional bus fuels and such alternative fuels, 
     and to construct bus-related facilities, including programs 
     of bus and bus-related projects for assistance to 
     subrecipients that are public agencies, private companies 
     engaged in public transportation, or private nonprofit 
     organizations; and''; and
                                 ______
                                 
  SA 2494. Mr. REED submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In subsection (b)(1)(B) of section 105 of title 23, United 
     States Code (as added by section 1104(a)), strike 
     ``1,000,000'' and insert ``1,100,000''.
                                 ______
                                 
  SA 2495. Mr. LIEBERMAN submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 61, strike line 4 and all that follows 
     through line 8 on page 64, and insert the following:

     SEC. 1201. HIGH TRAFFIC DENSITY EQUITY ADJUSTMENT PROGRAM.

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

     ``Sec. 139. High traffic density equity adjustment program

       ``(a) Establishment of Program.--The Secretary shall 
     establish and implement a high traffic density equity 
     adjustment program in accordance with this section.
       ``(b) Eligible Projects.--
       ``(1) In general.--A State may obligate funds allocated to 
     the State under this section only for projects eligible under 
     the Interstate maintenance program under section 119, the 
     National Highway System program under section 103, the 
     surface transportation program under section 133, the highway 
     safety improvement program under section 148, the highway 
     bridge replacement and rehabilitation program under section 
     144, and the congestion mitigation and air quality 
     improvement program under section 149 that will--
       ``(A) preserve, maintain, or otherwise extend, in a cost-
     effective manner, the useful life of existing highway 
     infrastructure elements; or
       ``(B) provide operational improvements (including traffic 
     management and intelligent transportation system strategies 
     and limited capacity enhancements) at points of recurring 
     highway congestion.
       ``(2) Set-aside.--Notwithstanding any other provision of 
     law, of the amounts made available under section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, $439,000,000 shall be 
     available for obligation to carry out this section without 
     further appropriation.
       ``(3) High traffic density equity adjustment program.--
       ``(A) In general.--The Secretary shall allocate the amounts 
     made available under paragraph (2) for a fiscal year to each 
     State in the proportion that--
       ``(i) the excess, if any, of the number of annual vehicle 
     miles per lane mile in the State over the average of that 
     number for all of the States; bears to
       ``(ii) the average of that number for all of the States.
       ``(B) Determination of annual vehicle miles travel.--In 
     determining annual vehicle miles per lane mile for purposes 
     of this paragraph, the Secretary shall use the latest 
     available annual estimates prepared by the Secretary of 
     Transportation.
       ``(c) Period of Availability.--
       ``(1) Obligation within 180 days.--
       ``(A) In general.--Funds allocated to a State under this 
     section shall be obligated by the State not later than 180 
     days after the date of apportionment.
       ``(B) Unobligated funds.--Any amounts that remain 
     unobligated at the end of that period shall be allocated in 
     accordance with subsection (d).
       ``(2) Obligation by end of fiscal year.--
       ``(A) In general.--All funds allocated or reallocated under 
     this section shall remain available for obligation until the 
     last day of the fiscal year for which the funds are 
     apportioned.
       ``(B) Unobligated funds.--Any amounts allocated that remain 
     unobligated at the end of the fiscal year shall lapse.
       ``(d) Redistribution of Allocated Funds and Obligation 
     Authority.--
       ``(1) In general.--On the date that is 180 days after the 
     date of allocation, or as soon thereafter as practicable, for 
     each fiscal year, the Secretary shall -
       ``(A) withdraw--
       ``(i) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(ii) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(B) reallocate the funds and redistribute the obligation 
     authority to States that--
       ``(i) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       (ii) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(2) Equity bonus.--The calculation and distribution of 
     funds under section 105 shall not be adjusted as a result of 
     the allocation of funds under this subsection.
       ``(e) Federal Share Payable.--The Federal share payable for 
     a project funded under this section shall be determined in 
     accordance with section 120.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     1 of title 23, United States Code, is amended by adding after 
     the item relating to section 138 the following:

``139. High traffic density equity adjustment program.''.
                                 ______
                                 
  SA 2496. Mr. LIEBERMAN submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 61, strike line 4 and all that follows 
     through page 64, line 23 and insert the following:
       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code, is amended by inserting after section 138 
     the following:

     ``SEC. 139. HIGH TRAFFIC DENSITY APPORTIONMENT PROGRAM.

       ``(a) Establishment.--The Secretary shall establish and 
     implement a high traffic density apportionment program in 
     accordance with this section.
       ``(b) Eligible Projects.--
       ``(1) In general.--A State may obligate funds allocated to 
     the State under this section only for projects eligible under 
     the Interstate maintenance program under section 119, the 
     National Highway System program under section 103, the 
     surface transportation program under section 133, the highway 
     safety improvement program under section 148, the highway 
     bridge replacement and rehabilitation program under section 
     144, and the congestion mitigation and air quality 
     improvement program under section 149 that will--
       ``(A) preserve, maintain, or otherwise extend, in a cost-
     effective manner, the useful life of existing highway 
     infrastructure elements; or
       ``(B) provide operational improvements (including traffic 
     management and intelligent transportation system strategies 
     and limited capacity enhancements) at points of recurring 
     highway congestion.
       ``(2) Set-aside.--Notwithstanding any other provision of 
     law, of the amounts made available under section 1101(13) of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2003, $1,000,000,000 shall be available for 
     obligation to carry out this section without further 
     appropriation.
       ``(3) High traffic density apportionment program.--
       ``(A) In general.--The Secretary shall allocate the amounts 
     made available under paragraph (2) for a fiscal year to each 
     State in the proportion that--
       ``(i) the excess, if any, of the number of annual vehicle 
     miles traveled per lane mile of each State-owned public road 
     in the State over the average of that number for all of the 
     States; bears to

[[Page S1160]]

       ``(ii) the number of daily vehicle miles traveled per the 
     total lane miles of all State-owned public roads in the 
     State.
       ``(B) Determination of annual vehicle miles traveled.--In 
     determining annual vehicle miles per lane mile for purposes 
     of this paragraph, the Secretary shall use the latest 
     available annual estimates prepared by the Secretary.
       ``(c) Period of Availability.--
       ``(1) Obligation within 180 Days.--
       ``(A) In general.--Funds allocated to a State under this 
     section shall be obligated by the State not later than 180 
     days after the date of apportionment.
       ``(B) Unobligated funds.--Any amounts that remain 
     unobligated at the end of that period shall be allocated in 
     accordance with subsection (d).
       ``(2) Obligation by end of fiscal year.--
       ``(A) In general.--All funds allocated or reallocated under 
     this section shall remain available for obligation until the 
     last day of the fiscal year for which the funds are 
     apportioned.
       ``(B) Unobligated funds.--Any amounts allocated that remain 
     unobligated at the end of the fiscal year shall lapse.
       ``(d) Redistribution of Allocated Funds and Obligation 
     Authority.--
       ``(1) In general.--On the date that is 180 days after the 
     date of allocation, or as soon thereafter as practicable, for 
     each fiscal year, the Secretary shall--
       ``(A) withdraw--
       ``(i) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(ii) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(13) of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2003; and
       ``(B) reallocate the funds and redistribute the obligation 
     authority to States that--
       ``(i) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(ii) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(2) Equity bonus.--The calculation and distribution of 
     funds under section 105 shall not be adjusted as a result of 
     the allocation of funds under this subsection.
       ``(e) Federal Share Payable.--The Federal share payable for 
     a project funded under this section shall be determined in 
     accordance with section 120.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     adding after the item relating the section 138 the following:

``105. High traffic density apportionment program.''.

     SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

                                 ______
                                 
  SA 2497. Mr. LIEBERMAN (for himself and Mr. Dodd) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 61, strike line 4 and all that follows 
     through page 64, line 8 and insert the following:
       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code, is amended by inserting after section 138 
     the following:

     ``SEC. 139. WEIGHTED HIGH TRAFFIC DENSITY APPORTIONMENT 
                   PROGRAM.

       ``(a) Establishment.--The Secretary shall establish and 
     implement a weighted high traffic density apportionment 
     program in accordance with this section.
       ``(b) Eligible Projects.--
       ``(1) In general.--A State may obligate funds allocated to 
     the State under this section only for projects eligible under 
     the Interstate maintenance program under section 119, the 
     National Highway System program under section 103, the 
     surface transportation program under section 133, the highway 
     safety improvement program under section 148, the highway 
     bridge replacement and rehabilitation program under section 
     144, and the congestion mitigation and air quality 
     improvement program under section 149 that will--
       ``(A) preserve, maintain, or otherwise extend, in a cost-
     effective manner, the useful life of existing highway 
     infrastructure elements; or
       ``(B) provide operational improvements (including traffic 
     management and intelligent transportation system strategies 
     and limited capacity enhancements) at points of recurring 
     highway congestion.
       ``(2) Set-aside.--Notwithstanding any other provision of 
     law, of the amounts made available under section 1101(13) of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2003, $1,000,000,000 shall be available for 
     obligation to carry out this section without further 
     appropriation.
       ``(3) Weighted high traffic density apportionment 
     program.--
       ``(A) In general.--Of amounts made available under 
     paragraph (2) for a fiscal year to each State--
       ``(i) the Secretary shall allocate \1/3\ in the proportion 
     that--

       ``(I) the excess, if any, of the number of annual daily 
     vehicle miles traveled per lane mile of State-owned rural 
     public roads in the State over the average of that number for 
     all of the States; bears to
       ``(II) the total of those numbers for all of the States; 
     and

       ``(ii) the Secretary shall allocate \2/3\ in the proportion 
     that--

       ``(I) the excess, if any, of the number of annual daily 
     vehicle miles traveled per lane mile of State-owned urban 
     public roads in the State over the average of that number for 
     all of the States; bears to
       ``(II) the total of those numbers for all of the States.

       ``(B) Determination of annual vehicle miles traveled.--In 
     determining annual vehicle miles per lane mile for purposes 
     of this paragraph, the Secretary shall use the latest 
     available annual estimates prepared by the Secretary.
       ``(c) Period of Availability.--
       ``(1) Obligation within 180 Days.--
       ``(A) In general.--Funds allocated to a State under this 
     section shall be obligated by the State not later than 180 
     days after the date of apportionment.
       ``(B) Unobligated funds.--Any amounts that remain 
     unobligated at the end of that period shall be allocated in 
     accordance with subsection (d).
       ``(2) Obligation by end of fiscal year.--
       ``(A) In general.--All funds allocated or reallocated under 
     this section shall remain available for obligation until the 
     last day of the fiscal year for which the funds are 
     apportioned.
       ``(B) Unobligated funds.--Any amounts allocated that remain 
     unobligated at the end of the fiscal year shall lapse.
       ``(d) Redistribution of Allocated Funds and Obligation 
     Authority.--
       ``(1) In general.--On the date that is 180 days after the 
     date of allocation, or as soon thereafter as practicable, for 
     each fiscal year, the Secretary shall--
       ``(A) withdraw--
       ``(i) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(ii) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(13) of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2003; and
       ``(B) reallocate the funds and redistribute the obligation 
     authority to States that--
       ``(i) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(ii) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(2) Equity bonus.--The calculation and distribution of 
     funds under section 105 shall not be adjusted as a result of 
     the allocation of funds under this subsection.
       ``(e) Federal Share Payable.--The Federal share payable for 
     a project funded under this section shall be determined in 
     accordance with section 120.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     adding after the item relating the section 138 the following:

``105. Weighted high traffic density apportionment program.''.

     SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

                                 ______
                                 
  SA 2498. Ms. MURKOWSKI (for herself and Mr. Stevens) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 39, between lines 22 and 23, insert the following:
       (17) Denali access system.--For the Denali Access System 
     under section 309 of the Denali Commission Act of 1998 (42 
     U.S.C. 3121 note; Public Law 105-277), $50,000,000 for each 
     of fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2499. Ms. MURKOWSKI (for herself and Mr. Stevens) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. DENALI ACCESS SYSTEM.

       (a) In General.--The Denali Commission Act of 1998 (42 
     U.S.C. 3121 note; Public Law 105-277) is amended--
       (1) by redesignating section 309 as section 310; and
       (2) by inserting after section 308 the following:

     ``SEC. 309. DENALI ACCESS SYSTEM.

       ``(a) Purpose.--It is the purpose of this section to fund 
     the construction of roads necessary to connect isolated rural 
     communities to a road system and to construct essential 
     access routes within isolated communities.
       ``(b) Definitions.--In this section:
       ``(1) State.--The term `State' means the State of Alaska.

[[Page S1161]]

       ``(2) System.--The term `System' means the Denali Access 
     System constructed under subsection (c).
       ``(c) Program.--The Secretary shall establish a program 
     that provides for the transfer to the Commission of funds for 
     the costs of construction (including the costs of planning, 
     design, engineering, permitting, right-of-way acquisition, 
     utility relocation, project management, and maintenance) of 
     segments of the System in the State.
       ``(d) Designation of System by Commission.--The Commission 
     shall submit to the Secretary--
       ``(1) designations by the Commission of the general 
     location and description of segments comprising the System;
       ``(2) priorities for construction of segments of the 
     System; and
       ``(3) other criteria applicable to the program established 
     under this section.
       ``(e) Connecting Infrastructure.--In carrying out this 
     section, the Commission may construct such access 
     infrastructure as the Commission determines to be necessary 
     to provide for adequate surface, water, or air access for 
     communities and regions in the State.
       ``(f) Design Standards.--Each project carried out under 
     this section shall use technology and design standards 
     determined by the Commission to be appropriate for the 
     associated segments of the System.
       ``(g) Addition to Public Transportation Systems.--At the 
     request of the Governor of the State, each completed segment 
     of the System may be added to the National Highway System or 
     other public transportation system, as appropriate, under the 
     conditions applicable to other segments of that system in the 
     State.
       ``(h) Preference to Alaska Materials and Products.--In the 
     construction of the System under this section, the 
     Commission--
       ``(1) shall, to the maximum extent practicable, encourage 
     the use of employees and businesses that are residents of the 
     State; and
       ``(2) may give preference--
       ``(A) to the use of materials and products produced in the 
     State; and
       ``(B) with respect to construction projects in the State, 
     to local residents and firms.
       ``(i) Matching Funds.--Notwithstanding any other provision 
     of law--
       ``(1) funds made available under this section may be used 
     as matching shares for any other Federal funds; and
       ``(2) Federal funds from any other source may be used as 
     matching funds for funds made available under this section if 
     the use of those Federal funds would contribute to the 
     purposes for which funds are made available under this 
     section, as determined by the State.
       ``(j) Lead Agency.--The Secretary shall delegate authority 
     to the Commission to serve as the lead agency in determining 
     the purpose of and need for, and in developing and 
     implementing all segments of, the System.
       ``(k) Obligation of Funds.--Funds made available to carry 
     out this section shall be available for obligation in the 
     same manner as if the funds were apportioned under chapter 1 
     of title 23, United States Code.''.
       (b) Authorization of Appropriations.--Section 310 of the 
     Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public 
     Law 105-277) (as redesignated by subsection (a)) is amended 
     by striking subsection (a) and inserting the following:
       ``(a) In General.--There are authorized to be appropriated 
     to the Commission--
       ``(1) to carry out the duties of the Commission under this 
     title (other than section 309), and in accordance with the 
     work plan approved under section 304, such sums as are 
     necessary for each fiscal year; and
       ``(2) to carry out section 309, $50,000,000 for each of 
     fiscal years 2004 through 2009.''.
                                 ______
                                 
  SA 2500. Ms. MURKOWSKI (for herself, Mr. Inhofe, Mr. Stevens, and Mr. 
Campbell) submitted an amendment intended to be proposed to amendment 
SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to authorize funds 
for Federal-aid highways, highway safety programs, and transit 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       Beginning on page 119, strike line 6 and all that follows 
     through page 129, line 18, and insert the following:

     highway safety matters (including motorcyclist safety); or
       ``(ii) enforce highway safety laws.
       ``(4) State highway safety improvement program.--The term 
     `State highway safety improvement program' means projects or 
     strategies included in the State strategic highway safety 
     plan carried out as part of the State transportation 
     improvement program under section 135(f).
       ``(5) State strategic highway safety plan.--The term `State 
     strategic highway safety plan' means a plan developed by the 
     State transportation department that--
       ``(A) is developed after consultation with--
       ``(i) a highway safety representative of the Governor of 
     the State;
       ``(ii) regional transportation planning organizations and 
     metropolitan planning organizations, if any;
       ``(iii) representatives of major modes of transportation 
     (including motorcycling);
       ``(iv) State and local traffic enforcement officials;
       ``(v) persons responsible for administering section 130 at 
     the State level;
       ``(vi) representatives conducting Operation Lifesaver;
       ``(vii) representatives conducting a motor carrier safety 
     program under section 31104 or 31107 of title 49;
       ``(viii) motor vehicle administration agencies; and
       ``(ix) other major State and local safety stakeholders;
       ``(B) analyzes and makes effective use of State, regional, 
     or local crash data;
       ``(C) addresses engineering, management, operation, 
     education, enforcement, and emergency services elements of 
     highway safety as key factors in evaluating highway projects;
       ``(D) considers safety needs of, and high-fatality segments 
     of, public roads;
       ``(E) considers the results of State, regional, or local 
     transportation and highway safety planning processes;
       ``(F) describes a program of projects or strategies to 
     reduce or eliminate safety hazards;
       ``(G) is approved by the Governor of the State or a 
     responsible State agency; and
       ``(H) is consistent with the requirements of section 
     135(f).
       ``(b) Program.--
       ``(1) In general.--The Secretary shall carry out a highway 
     safety improvement program.
       ``(2) Purpose.--The purpose of the highway safety 
     improvement program shall be to achieve a significant 
     reduction in traffic fatalities and serious injuries on 
     public roads.
       ``(c) Eligibility.--
       ``(1) In general.--To obligate funds apportioned under 
     section 104(b)(5) to carry out this section, a State shall 
     have in effect a State highway safety improvement program 
     under which the State--
       ``(A) develops and implements a State strategic highway 
     safety plan that identifies and analyzes highway safety 
     problems and opportunities as provided in paragraph (2);
       ``(B) produces a program of projects or strategies to 
     reduce identified safety problems;
       ``(C) evaluates the plan on a regular basis to ensure the 
     accuracy of the data and priority of proposed improvements; 
     and
       ``(D) submits to the Secretary an annual report that--
       ``(i) describes, in a clearly understandable fashion, not 
     less than 5 percent of locations determined by the State, 
     using criteria established in accordance with paragraph 
     (2)(B)(ii), as exhibiting the most severe safety needs; and
       ``(ii) contains an assessment of--

       ``(I) potential remedies to hazardous locations identified;
       ``(II) estimated costs associated with those remedies; and
       ``(III) impediments to implementation other than cost 
     associated with those remedies.

       ``(2) Identification and analysis of highway safety 
     problems and opportunities.--As part of the State strategic 
     highway safety plan, a State shall--
       ``(A) have in place a crash data system with the ability to 
     perform safety problem identification and countermeasure 
     analysis;
       ``(B) based on the analysis required by subparagraph (A)--
       ``(i) identify hazardous locations, sections, and elements 
     (including roadside obstacles, railway-highway crossing 
     needs, and unmarked or poorly marked roads) that constitute a 
     danger to motorists (including motorcyclists), bicyclists, 
     pedestrians, and other highway users; and
       ``(ii) using such criteria as the State determines to be 
     appropriate, establish the relative severity of those 
     locations, in terms of accidents, injuries, deaths, traffic 
     volume levels, and other relevant data;
       ``(C) adopt strategic and performance-based goals that--
       ``(i) address traffic safety, including behavioral and 
     infrastructure problems and opportunities on all public 
     roads;
       ``(ii) focus resources on areas of greatest need; and
       ``(iii) are coordinated with other State highway safety 
     programs;
       ``(D) advance the capabilities of the State for traffic 
     records data collection, analysis, and integration with other 
     sources of safety data (such as road inventories) in a manner 
     that--
       ``(i) complements the State highway safety program under 
     chapter 4 and the commercial vehicle safety plan under 
     section 31102 of title 49;
       ``(ii) includes all public roads;
       ``(iii) identifies hazardous locations, sections, and 
     elements on public roads that constitute a danger to 
     motorists (including motorcyclists), bicyclists, pedestrians, 
     and other highway users; and
       ``(iv) includes a means of identifying the relative 
     severity of hazardous locations described in clause (iii) in 
     terms of accidents, injuries, deaths, and traffic volume 
     levels;
       ``(E)(i) determine priorities for the correction of 
     hazardous road locations, sections, and elements (including 
     railway-highway crossing improvements), as identified through 
     crash data analysis;
       ``(ii) identify opportunities for preventing the 
     development of such hazardous conditions; and
       ``(iii) establish and implement a schedule of highway 
     safety improvement projects for hazard correction and hazard 
     prevention; and
       ``(F)(i) establish an evaluation process to analyze and 
     assess results achieved by highway safety improvement 
     projects carried out

[[Page S1162]]

     in accordance with procedures and criteria established by 
     this section; and
       ``(ii) use the information obtained under clause (i) in 
     setting priorities for highway safety improvement projects.
       ``(d) Eligible Projects.--
       ``(1) In general.--A State may obligate funds apportioned 
     to the State under section 104(b)(5) to carry out--
       ``(A) any highway safety improvement project on any public 
     road or publicly owned bicycle or pedestrian pathway or 
     trail; or
       ``(B) as provided in subsection (e), for other safety 
     projects.
       ``(2) Use of other funding for safety.--
       ``(A) Effect of section.--Nothing in this section prohibits 
     the use of funds made available under other provisions of 
     this title for highway safety improvement projects.
       ``(B) Use of other funds.--States are encouraged to address 
     the full scope of their safety needs and opportunities by 
     using funds made available under other provisions of this 
     title (except a provision that specifically prohibits that 
     use).
       ``(e) Flexible Funding for States With a Strategic Highway 
     Safety Plan.--
       ``(1) In general.--To further the implementation of a State 
     strategic highway safety plan, a State may use up to 25 
     percent of the amount of funds made available under this 
     section for a fiscal year to carry out safety projects under 
     any other section as provided in the State strategic highway 
     safety plan.
       ``(2) Other transportation and highway safety plans.--
     Nothing in this subsection requires a State to revise any 
     State process, plan, or program in effect on the date of 
     enactment of this section.
       ``(f) Reports.--
       ``(1) In general.--A State shall submit to the Secretary a 
     report that--
       ``(A) describes progress being made to implement highway 
     safety improvement projects under this section;
       ``(B) assesses the effectiveness of those improvements; and
       ``(C) describes the extent to which the improvements funded 
     under this section contribute to the goals of--
       ``(i) reducing the number of fatalities on roadways;
       ``(ii) reducing the number of roadway-related injuries;
       ``(iii) reducing the occurrences of roadway-related 
     crashes;
       ``(iv) mitigating the consequences of roadway-related 
     crashes; and
       ``(v) reducing the occurrences of roadway-railroad grade 
     crossing crashes.
       ``(2) Contents; schedule.--The Secretary shall establish 
     the content and schedule for a report under paragraph (1).
       ``(3) Transparency.--The Secretary shall make reports under 
     paragraph (1) available to the public through--
       ``(A) the Internet site of the Department; and
       ``(B) such other means as the Secretary determines to be 
     appropriate.
       ``(4) Discovery and admission into evidence of certain 
     reports, surveys, and information.--Notwithstanding any other 
     provision of law, no report, survey, schedule, list, or other 
     data compiled or collected for any purpose directly relating 
     to paragraph (1) or subsection (c)(1)(D), or published by the 
     Secretary in accordance with paragraph (3), shall be--
       ``(A) subject to discovery or admitted into evidence in any 
     Federal or State judicial proceeding; or
       ``(B) considered for any other purpose in any action for 
     damages arising from an occurrence at a location identified 
     or addressed in the report, survey, schedule, list, or other 
     collection of data.
       ``(g) Federal Share of Highway Safety Improvement 
     Projects.--Except as provided in sections 120 and 130, the 
     Federal share of the cost of a highway safety improvement 
     project carried out with funds made available under this 
     section shall be 90 percent.
       ``(h) Funds for Bicycle and Pedestrian Safety.--A State 
     shall allocate for bicycle and pedestrian improvements in the 
     State a percentage of the funds remaining after 
     implementation of sections 130(e) and 150, in an amount that 
     is equal to or greater than the percentage of all fatal 
     crashes in the States involving bicyclists and pedestrians.
       ``(i) Roadway Safety Improvements for Older Drivers and 
     Pedestrians.--For each of fiscal years 2004 through 2009, 
     $25,000,000 is authorized to be appropriated out of the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     projects in all States to improve traffic signs and pavement 
     markings in a manner consistent with the recommendations 
     included in the publication of the Federal Highway 
     Administration entitled `Guidelines and Recommendations to 
     Accommodate Older Drivers and Pedestrians (FHWA-RD-01-103)' 
     and dated October 2001.''.
       (2) Motorcyclist safety--
       (A) Motorcyclist safety training and motorist awareness 
     programs.--
       (i) In general.--Chapter 4 of title 23, United States Code, 
     is amended--

       (I) by redesignating section 413 (as added by section 
     4161(a)) as section 414; and
       (II) by adding after section 414 (as redesignated by 
     subparagraph (A)) the following:

     ``Sec. 415. Motorcyclist safety training and motorist 
       awareness programs

       ``(a) Definitions.--In this section:
       ``(1) Motorcyclist safety training.--The term `motorcyclist 
     safety training' means any formal program of instruction 
     that--
       ``(A) provides accident avoidance and other safety-oriented 
     operational skills to motorcyclists, including innovative 
     training opportunities to meet unique regional needs; and
       ``(B) is approved for use in a State by the designated 
     State authority having jurisdiction over motorcyclist safety 
     issues, which may include the State Motorcycle Safety 
     Administrator or a motorcycle advisory council appointed by 
     the Governor of the State.
       ``(2) Motorist awareness.--The term `motorist awareness' 
     means individual or collective motorist awareness of--
       ``(A) the presence of motorcycles on or near roadways; and
       ``(B) safe driving practices that avoid injury to 
     motorcyclists, bicyclists, and pedestrians.
       ``(3) Motorist awareness program.--The term `motorist 
     awareness program' means any informational or public 
     awareness program designed to enhance motorist awareness that 
     is developed by or in coordination with the designated State 
     authority having jurisdiction over motorcyclist safety 
     issues, which may include the State Motorcycle Safety 
     Administrator or, in the absence of a State Administrator, a 
     motorcycle advisory council appointed by a Governor of the 
     State.
       ``(4) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) the Commonwealth of Puerto Rico.
       ``(b) Eligibility.--Not later than 90 days after the date 
     of enactment of this section, on September 1, 2004, and on 
     September 1 of each fiscal year thereafter, and based on a 
     letter of certification provided by the Governor of each 
     State, the Secretary shall develop and publish a list of 
     States that, as of the date of publication of the list, have 
     established motorcyclist safety training programs and 
     motorist awareness programs, including information that 
     indicates--
       ``(1) the level of base funding provided for each such 
     program for the applicable fiscal year; and
       ``(2) whether the level of base funding provided for each 
     such program for the applicable fiscal year was increased, 
     decreased, or maintained from the level of funding provided 
     for the program for the previous fiscal year.
       ``(c) Allocation.--Not later than 120 days after the date 
     of enactment of this section, on October 1, 2004, and on 
     October 1 of each fiscal year thereafter, the Secretary shall 
     allocate to each State for which the base funding allocated 
     for motorcyclist safety training and motorist awareness 
     programs was not less than the amount allocated for the 
     previous year, not less than $100,000, to be used only for 
     motorcyclist safety training and motorist awareness programs, 
     including--
       ``(1) improvements to motorcyclist safety training 
     curricula;
       ``(2) improvements in program delivery to both urban and 
     rural areas, including--
       ``(A) procurement or repair of practice motorcycles;
       ``(B) instructional aides;
       ``(C) mobile training units; and
       ``(D) leasing or purchase of facilities for classroom 
     instruction and closed-course skill training;
       ``(3) an increase in the recruitment or retention of 
     motorcyclist safety training instructors certified by a State 
     Motorcycle Safety Administrator or motorcycle advisory 
     council appointed by the Governor; and
       ``(4) public awareness, public service announcements, and 
     other outreach programs to enhance motorist awareness.
       ``(d) Contracts With Organizations.--The Secretary may 
     enter into an agreement with an organization that is 
     recommended by and represents the interests of State 
     Motorcycle Safety Administrators to review, determine, and 
     disseminate a description of best practices in motorcycle 
     safety training and motorist awareness, and to recommend such 
     practices, to State administrators, governors, State 
     legislative bodies, and chief licensing officers of States.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section from the Highway 
     Trust Fund (other than the Mass Transit Account) $5,200,000 
     for each of fiscal years 2004 through 2009.''.
       (ii) Conforming amendment.--The analysis for chapter 4 of 
     title 23, United States Code, is amended--

       (I) by redesignating the item relating to section 413 (as 
     added by section 4161(b)) as relating to section 414; and
       (II) by adding at the end the following:

``415. Motorcyclist safety training and motorist awareness programs.''.

       (B) Reduction of crashes involving motorcycles.--Section 
     402 of title 23, United States Code, is amended by inserting 
     after subsection (h) (as added by section 4103(c)) the 
     following:
       ``(i) Reduction of Crashes Involving Motorcycles.--
       ``(1) In general.--As part of the program carried out under 
     this section, the Secretary shall make annual grants to 
     States to pay the Federal share of expanding programs to 
     reduce single- and multiple-vehicle crashes involving 
     motorcycles.
       ``(2) Eligibility.--To be eligible for a grant under this 
     subsection, a State shall demonstrate to the Secretary that 
     for each of fiscal years 2004 and 2005, at least 1, for 
     fiscal years 2006 and 2007, at least 2, and for fiscal

[[Page S1163]]

     years 2008 and 2009, at least 3, of the programs or 
     conditions described in the following subparagraphs apply to 
     the State:
       ``(A) Drivers license suspension or revocation system.--The 
     State has implemented a statewide drivers license suspension 
     or revocation system that suspends a drivers license for at 
     least 1 year for an individual who operates a motor vehicle 
     in a reckless or negligent manner that causes--
       ``(i) an accident with a motorcycle or other motor vehicle; 
     and
       ``(ii) injury or death to an individual.
       ``(B) Reduction of crash rate involving motorcycles.--The 
     State demonstrates to the Secretary that, for the year 
     following receipt of a grant under this section, there has 
     been a reduction in the crash rate of motor vehicles 
     involving motorcycles in the State (expressed as a function 
     of crashes per 10,000 motorcycle registrations as compared to 
     the previous year).
       ``(C) Motorcycle rider training courses.--The State 
     demonstrates to the Secretary that, between the fiscal year 
     for which a grant is received under this section and the 
     preceding fiscal year, there has been no reduction in the 
     number of individuals enrolled in motorcycle rider training 
     based on a course of instruction approved for the State by 
     the State Motorcycle Safety Administrator or, in the absence 
     of a State Administrator, by a motorcycle advisory council 
     appointed by the Governor of the State.
       ``(D) Motorist awareness.--The State--
       ``(i) has implemented a statewide program to enhance 
     motorist awareness of motorcyclists; and
       ``(ii) demonstrates to the Secretary that, between each 
     fiscal year for which a grant is received under this section 
     and the preceding fiscal year, there has been a reduction in 
     the rate of multiple-vehicle collisions in the State 
     involving motorcycles (expressed as a function of crashes per 
     10,000 motorcycle registrations).
       ``(E) Impaired motorcycle operation.--The State--
       ``(i) has implemented a statewide program to reduce 
     impaired motorcycle operation; and
       ``(ii) demonstrates to the Secretary that, between each 
     fiscal year for which a grant is received under this section 
     and the preceding fiscal year, there has been a reduction in 
     the rate of reported accidents involving alcohol- or drug-
     impaired motorcycle operators (expressed as a function of 
     10,000 motorcycle registrations).
       ``(F) Motorcyclist training.--The State--
       ``(i) has implemented a statewide program to expedite 
     delivery of motorcyclist training to urban and rural areas; 
     and
       ``(ii) demonstrates to the Secretary that, between each 
     fiscal year for which a grant is received under this section 
     and the preceding fiscal year, there has been a reduction in 
     the rate of reported accidents involving motorcyclists with 
     improper licenses or lacking a motorcycle endorsement 
     (expressed as a function of 10,000 motorcycle registrations).
       ``(3) Federal share.--The Federal share of the cost of 
     implementing and enforcing a program described in paragraph 
     (2) for a fiscal year shall not exceed (as determined by the 
     Secretary)--
       ``(A) for the first 3 years for which a State receives a 
     grant under this subsection, 50 percent; and
       ``(B) for each additional year for which a State receives a 
     grant under this subsection, 25 percent.
       ``(4) Maintenance of effort.--No grant may be made to a 
     State under this subsection for any fiscal year unless the 
     State enters into such agreement with the Secretary as the 
     Secretary may require to ensure that the State will maintain 
     the aggregate expenditures of the State from all other 
     sources for motorcycle safety programs at a level that is at 
     or above the average level of such expenditures for each of 
     the 2 fiscal years preceding the date of enactment of this 
     section, as determined by the Secretary.
       ``(5) Funding.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall use funds authorized to be appropriated to 
     carry out this section for a fiscal year to carry out this 
     subsection for the fiscal year.
       ``(B) Limitation.--The amount of a grant made to a State 
     under this subsection for a fiscal year shall not exceed 10 
     percent of the amount apportioned to the State under this 
     section for fiscal year 2002.''.
                                 ______
                                 
  SA 2501. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 384, strike line 21 and all that follows 
     through page 386, line 19, and insert the following:

     SEC. 1818. HIGH-SPEED MAGNETIC LEVITATION SYSTEM DEPLOYMENT 
                   PROGRAM.

       (a) In General.--Section 322 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 322. High-speed magnetic levitation system deployment 
       program

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Railroad Administration.
       ``(2) Eligible project costs.--
       ``(A) In general.--The term `eligible project costs' means 
     the capital cost of the fixed guideway infrastructure of a 
     MAGLEV project, including land, piers, guideways, propulsion 
     equipment and other components attached to guideways, power 
     distribution facilities (including substations), control and 
     communications facilities, access roads, and storage, repair, 
     and maintenance facilities.
       ``(B) Inclusion.--The term `eligible project costs' 
     includes the costs of preconstruction planning activities.
       ``(C) Exclusion.--The term `eligible project costs' does 
     not include costs incurred for a new station.
       ``(3) Full project costs.--The term `full project costs' 
     means the total capital costs of a MAGLEV project, including 
     eligible project costs and the costs of stations, vehicles, 
     and equipment.
       ``(4) MAGLEV.--
       ``(A) In general.--The term `MAGLEV' means transportation 
     systems in revenue service employing magnetic levitation that 
     would be capable of safe use by the public at a speed in 
     excess of 240 miles per hour.
       ``(B) Inclusion.--The term `MAGLEV' includes power, 
     control, and communication facilities required for the safe 
     operation of the vehicles within a system described in 
     subparagraph (A).
       ``(b) Phase I--Preconstruction Planning.--
       ``(1) In general.--A State, State-designated authority, 
     multi-State-designated authority, or special purpose entity 
     may apply to the Administrator for grants to conduct 
     preconstruction planning for proposed new MAGLEV projects, or 
     extensions to MAGLEV systems planned, studied, or deployed 
     under this or any other program.
       ``(2) Applications.--An application for a grant under this 
     subsection shall include a description of the proposed MAGLEV 
     project, including, at a minimum--
       ``(A) a description of the purpose and need for the 
     proposed project;
       ``(B) a description of the travel market to be served;
       ``(C) a description of the technology selected for the 
     project;
       ``(D) forecasts of ridership and revenues;
       ``(E) a description of preliminary engineering that is 
     sufficient to provide a reasonable estimate of the capital 
     cost of constructing, operating, and maintaining the project;
       ``(F) a realistic schedule for construction and equipment 
     for the project;
       ``(G) an environmental assessment;
       ``(H) a preliminary identification of the 1 or more 
     organizations that will construct and operate the project; 
     and
       ``(I) a cost-benefit analysis and tentative financial plan 
     for construction and operation of the project.
       ``(3) Deadline for applications.--The Administrator shall 
     establish an annual deadline for receipt of applications 
     under this subsection.
       ``(4) Evaluation.--The Administrator shall evaluate all 
     applications received by the annual deadline to determine 
     whether the applications meet criteria established by the 
     Administrator.
       ``(5) Selection.--The Administrator shall select for 
     Federal support for preconstruction planning any project that 
     the Administrator determines meets the criteria.
       ``(c) Phase II--Environmental Impact Studies.--
       ``(1) In general.--A State, State-designated authority, 
     multi-State-designated authority, or special purpose entity 
     that has conducted (under this section or any other provision 
     of law) 1 or more studies that address each of the 
     requirements of subsection (b)(2) may submit the studies to 
     the Administrator, to support an application for Federal 
     funding to assist in--
       ``(A) preparing an environmental impact statement or 
     similar analysis required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
       ``(B) planning for construction, operation, and maintenance 
     of a MAGLEV project.
       ``(2) Environmental impact statement.--The final 
     environmental impact statement or analysis described in 
     paragraph (1)(A) shall--
       ``(A) identify a preferred alternative; and
       ``(B) describe the organization that will own, plan, 
     finance, construct, equip, operate, and maintain the proposed 
     project.
       ``(3) Deadline for applications.--
       ``(A) In general.--The Administrator shall--
       ``(i) establish an annual deadline for receipt of Phase II 
     applications; and
       ``(ii) evaluate all applications received by that deadline 
     in accordance with criteria established under subparagraph 
     (B).
       ``(B) Criteria.--The Administrator shall establish criteria 
     to evaluate applications that include whether--
       ``(i) the technology selected is available for deployment 
     at the time of the application;
       ``(ii) operating revenues combined with known and dedicated 
     sources of other revenues in any year will exceed annual 
     operation and maintenance costs;
       ``(iii) over the life of the MAGLEV project, total project 
     benefits will exceed total project costs; and
       ``(iv) the proposed capital financing plan is realistic and 
     does not assume Federal assistance that is greater than the 
     maximums specified in clause (ii).
       ``(C) Projects selected.--If the Administrator determines 
     that a MAGLEV project meets the criteria established under 
     subparagraph (B), the Administrator shall--

[[Page S1164]]

       ``(i) select that project for Federal Phase II support; and
       ``(ii) publish in the Federal Register a notice of intent 
     to prepare an environmental impact statement or similar 
     analysis required under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.).
       ``(d) Phase III--Deployment.--
       ``(1) In general.--A proposed owner of a MAGLEV project 
     that has initiated a final environmental impact statement or 
     similar analysis required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has refined 
     planning for the construction, operation, and maintenance of 
     the MAGLEV project, under this or any other program, may 
     submit an application to the Administrator for Federal 
     funding of a portion of the capital costs of planning, 
     financing, constructing, and equipping the preferred 
     alternative identified in the final environmental impact 
     statement or analysis.
       ``(2) Record of decision.--
       ``(A) In general.--The Administrator shall publish a record 
     of decision for each application, based on the information 
     provided in the application and the environmental impact 
     statement or similar analysis required under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       ``(B) Decision to construct.--The Administrator shall issue 
     a record of decision to construct for a project determined by 
     the Administrator--
       ``(i) to have a high probability of being financed, 
     constructed, equipped, and operated by the proposed owners; 
     and
       ``(ii) to meet other criteria established by the 
     Administrator.
       ``(C) Federal funding.--To the extent that funds are 
     available, the Administrator shall negotiate a Federal 
     funding agreement for each project that is recommended for 
     deployment in the record of decision.
       ``(e) Financial Assistance.--
       ``(1) In general.--The Secretary shall make available 
     financial assistance to pay the Federal share of the full 
     project costs of projects selected under this section.
       ``(2) Prevailing wage and buy america requirements.--
     Sections 5333(a) and 5323(j) of title 49 shall apply to 
     financial assistance made available under this section and 
     projects funded with that assistance.
       ``(3) Federal share.--
       ``(A) Phase I and phase II.--For Phase I--preconstruction 
     planning and Phase II--environmental impact studies carried 
     out under subsections (b) and (c), respectively, the Federal 
     share of the costs of the planning and studies shall be not 
     more than \2/3\ of the full cost of the planning and studies.
       ``(B) Phase III.--For Phase III--deployment projects 
     carried out under subsection (d), not more than \2/3\ of the 
     full capital cost of such a project shall be made available 
     from funds appropriated for this program.
       ``(4) Funding.--
       ``(A) Contract authority; authorization of 
     appropriations.--
       ``(i) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) for fiscal years 2004 through 2009 to carry out this 
     section--

       ``(I) $10,000,000 for Phase I--preconstruction planning 
     studies;
       ``(II) $20,000,000 for Phase II--environmental impact 
     studies; and
       ``(III) $60,000,000 for Phase III--deployment projects.

       ``(ii) Obligation authority.--Funds authorized by this 
     subparagraph shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter I, 
     except that--

       ``(I) the Federal share of the cost of the project shall be 
     in accordance with paragraph (2); and
       ``(II) the availability of the funds shall be in accordance 
     with subsection (f).

       ``(B) Noncontract authority authorization of 
     appropriations.--
       ``(i) Phase I.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out Phase I--preconstruction planning 
     studies under subsection (b)--

       ``(I) $12,000,000 for fiscal year 2004;
       ``(II) $6,000,000 for fiscal year 2005; and
       ``(III) $2,000,000 for each of fiscal years 2006 through 
     2009.

       ``(ii) Phase II.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out Phase II--environmental impact studies 
     under subsection (c)--

       ``(I) $5,000,000 for fiscal year 2004;
       ``(II) $5,000,000 for fiscal year 2005;
       ``(III) $5,000,000 for fiscal year 2006;
       ``(IV) $5,000,000 for fiscal year 2007; and
       ``(V) $5,000,000 for fiscal year 2008.

       ``(iii) Phase III.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out Phase III--deployment projects under 
     subsection (d)--

       ``(I) $355,500,000 for fiscal year 2004;
       ``(II) $376,000,000 for fiscal year 2005;
       ``(III) $392,000,000 for fiscal year 2006;
       ``(IV) $410,000,000 for fiscal year 2007;
       ``(V) $423,000,000 for fiscal year 2008; and
       ``(VI) $443,000,000 for fiscal year 2009.

       ``(iv) Program administration.--There are authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out administration of this 
     program--

       ``(I) $2,500,000 for fiscal year 2004;
       ``(II) $13,000,000 for fiscal year 2005;
       ``(III) $16,000,000 for fiscal year 2006;
       ``(IV) $8,000,000 for fiscal year 2007; and
       ``(V) $5,000,000 for each of fiscal years 2008 and 2009.

       ``(v) Research and development.--There is authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out research and development 
     activities to reduce MAGLEV deployment costs $4,000,000 for 
     each of fiscal years 2004 through 2009.
       ``(f) Availability of Funds.--Funds made available under 
     subsection (e) shall remain available until expended.
       ``(g) Other Federal Funds.--Funds made available to a State 
     to carry out the surface transportation program under section 
     133 and the congestion mitigation and air quality improvement 
     programs under section 149 may be used by any State to pay a 
     portion of the full project costs of an eligible project 
     selected under this section, without requirement for non-
     Federal funds.
       ``(h) Other Federal Funds.--A project selected for funding 
     under this section shall be eligible for other forms of 
     financial assistance provided by this title and title V of 
     the Railroad Revitalization and Regulatory Reform Act of 1976 
     (45 U.S.C. 821 et seq.), including loans, loan guarantees, 
     and lines of credit.
       ``(i) Mandatory Additional Selection.--
       ``(1) In general.--Subject to paragraph 2, in selecting 
     projects for preconstruction planning, deployment, and 
     financial assistance, the Administrator may only provide 
     funds to MAGLEV projects that meet the criteria established 
     under subsection (b)(4).
       ``(2) Priority funding.--The Administrator shall give 
     priority funding to a MAGLEV project that--

     Has received funding prior to the date of enactment of this 
     section as a result of evaluation and contracting procedures 
     for MAGLEV transportation, to the extent that the project 
     continues to fulfill the requirements of this section;
       ``(B) to the maximum extent practicable, has met safety 
     guidelines established by the Administrator to protect the 
     health and safety of the public;
       ``(C) is based on designs that ensure the greatest life 
     cycle advantages for the project;
       ``(D) contains domestic content of at least 70 percent; and
       ``(E) Those projects eligible for (d) Phase III--Deployment 
     which were developed through a public-private partnership 
     shall be implemented through the efforts of such a public-
     private partnership with the private sector taking a 
     leadership position with regard to design, development and 
     deployment those private sector industry participants 
     involved throughout the development of the various projects 
     under TEA-21 Section 1218, shall continue to participate in 
     the Phase III-Deployment effort, if the private sector 
     industry participants so choose.
                                 ______
                                 
  SA 2502. Mr. BOND submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Beginning on page 876, strike line 12 and all that follows 
     through the matter between lines 6 and 7 on page 880.
                                 ______
                                 
  SA 2503. Mr. BROWNBACK submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike section 1609.
                                 ______
                                 
  SA 2504. Ms. MURKOWSKI submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, add the following:

     SEC.  . NATIONAL TRIBAL ROADS INVENTORY.

       (a) In General.--Chapter 2 of title 23, United States Code 
     (as amended by 
     section  ), is amended by adding at the end the following:

     ``Sec.   . National tribal roads inventory

       ``(a) Definitions.--In this section:
       ``(1) Inventory.--The term `inventory' means the 
     comprehensive national tribal roads inventory completed under 
     subsection (b).
       ``(2) Native village.--The term `Native village' has the 
     meaning given the term in section 3 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1602).
       ``(3) Primary access route.--
       ``(A) In general.--The term `primary access route' means, 
     as determined by a Native village in accordance with the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), 
     a route within the boundaries of land held or managed by a 
     Village Corporation for the Native village that--
       ``(i) is most commonly used;

[[Page S1165]]

       ``(ii)(I) is a community street; or
       ``(II) provides access to the center of the Native village 
     by the shortest practicable route; or
       ``(iii) in the case of a proposed route, is the shortest 
     practicable route connecting 2 points.
       ``(B) Inclusions.--The term `primary access route' includes 
     a road or trail that--
       ``(i) connects 2 villages (including a bridge over water);
       ``(ii) leads to a landfill;
       ``(iii) leads to a drinking water source;
       ``(iv) leads to a natural resource identified for economic 
     development; and
       ``(v) provides access to an intermodal terminus such as an 
     airport, harbor, or boat landing.
       ``(4) Village corporation.--The term `Village Corporation' 
     has the meaning given the term in section 3 of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602).
       ``(b) Inventory.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this section, the Secretary, in conjunction with 
     the Secretary of the Interior, shall complete a comprehensive 
     national tribal roads inventory.
       ``(2) Inclusions.--The Secretary shall include in the 
     inventory--
       ``(A) routes previously included in any similar inventory; 
     and
       ``(B) primary access routes.
       ``(c) Availability of Activities, Functions, and 
     Services.--All activities, functions, and services relating 
     to or associated with the inventory shall be available to 
     Indian tribes and tribal organizations in accordance with the 
     contracting and compacting provisions of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b et 
     seq.).
       ``(d) Report.--Not later than January 1, 2006, the 
     Secretary shall submit to Congress a report that includes the 
     data gathered in completing, and the results of, the 
     inventory.''.
       (b) Conforming Amendment.--The analysis for chapter 2 of 
     title 23, United States Code (as amended by section   ), is 
     amended by adding at the end the following:

``  . National tribal roads inventory.''.
                                 ______
                                 
  SA 2505. Mr. BUNNING submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike section 1406.
                                 ______
                                 
  SA 2506. Mr. BUNNING submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. GRANTS IN AID FOR AIRPORTS.

       (a) Appropriations Transfer.--Title I of Division I of the 
     Consolidated Appropriations Resolution, 2003 (Public Law 108-
     7) is amended--
       (1) under the heading ``Grants-in-Aid for Airports''--
       (A) by striking ``$3,100,000,000'' and inserting 
     ``$3,100,500,000''; and
       (B) by striking ``$3,400,000,000'' and inserting 
     ``$3,400,500,000''; and
       (2) under the heading ``Capital Investment Grants'', by 
     striking ``$607,200,000'' each place it appears and inserting 
     ``$606,700,000''.
       (b) Earmark Adjustment.--
       (1) Increase.--Page 1258 of House Conference Report 108-10 
     is deemed to be amended by increasing the amount earmarked 
     for Grants-in-Aid for Airports, high priority projects by 
     $500,000, which is reserved for various improvements to the 
     Henderson City-County, Kentucky Airport.
       (2) Offset.--Page 1297 of House Conference Report 108-10 is 
     deemed to be amended by striking the line that earmarks 
     $500,000 for the Henderson County, Kentucky bus facility.
                                 ______
                                 
  SA 2507. Mr. PRYOR (for himself and Mrs. Lincoln) submitted an 
amendment intended to be proposed to amendment SA 2285 proposed by Mr. 
Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 389, between lines 15 and 16, insert the following:

     SEC. 1823. DEPARTEE CREEK WATERSHED PROJECT.

       Pursuant to Subpart 505D of the National Watershed Manual, 
     the Committee on Environment and Public Works of the Senate 
     approves of the watershed plan and environmental impact 
     statement submitted by the Departee Creek Watershed Project 
     in Independence and Jackson Counties, Arkansas.
                                 ______
                                 
  SA 2508. Mr. SMITH submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1148, between lines 6 and 7, insert the following:

     SEC. 5454. CREDIT FOR MAINTENANCE OF RAILROAD TRACK.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business-related credits), as amended by section 5453 of this 
     Act, is further amended by adding at the end the following 
     new section:

     ``SEC. 45I. RAILROAD TRACK MAINTENANCE CREDIT.

       ``(a) General Rule.--For purposes of section 38, the 
     railroad track maintenance credit determined under this 
     section for the taxable year is the amount of qualified 
     railroad track maintenance expenditures paid or incurred by 
     the taxpayer during the taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     shall not exceed the product of--
       ``(1) $10,000, and
       ``(2) the number of miles of railroad track owned or leased 
     by the taxpayer as of the close of the taxable year.
       ``(c) Qualified Railroad Track Maintenance Expenditures.--
     For purposes of this section, the term `qualified railroad 
     track maintenance expenditures' means expenditures (whether 
     or not otherwise chargeable to capital account) for 
     maintaining railroad track (including roadbed, bridges, and 
     related track structures) owned or leased by the taxpayer of 
     Class II or Class III railroads (as determined by the Surface 
     Transportation Board).
       ``(d) Controlled Groups.--For purposes of subsection (b), 
     rules similar to the rules of paragraph (1) of section 41(f) 
     shall apply for purposes of this subsection.
       ``(e) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     railroad track, the basis of such track shall be reduced by 
     the amount of the credit so allowed.
       ``(f) Application of Section.--This section shall apply to 
     qualified railroad track maintenance expenditures paid or 
     incurred during taxable years beginning after December 31, 
     2003, and before January 1, 2009.
       ``(g) Credit Transferability.--
       ``(1) In general.--Any credit allowable under this section 
     may be transferred as provided in this subsection, and the 
     determination as to whether the credit is allowable shall be 
     made without regard to the tax-exempt status of the 
     transferor.
       ``(2) Transfer to eligible taxpayer.--Any credit 
     transferred under paragraph (1) shall be transferred to an 
     eligible taxpayer. Any credit so transferred shall be allowed 
     to the transferee, but the transferee may not assign such 
     credit to any other person.
       ``(3) Eligible taxpayer.--For purposes of this subsection, 
     the term `eligible taxpayer' means--
       ``(A) any person who transports property using the rail 
     facilities of the taxpayer or who furnishes railroad-related 
     property or services to the taxpayer, and
       ``(B) any Class II or Class III railroad.
       ``(4) Minimum price for transfer.--No transfer shall be 
     allowed under this subsection unless the transferor receives 
     compensation for the credit transfer equal to at least 50 
     percent of the amount of credit transferred. The excess of 
     the amount of credit transferred over the compensation 
     received by the transferor for such transfer shall be 
     included in the gross income of the transferee.''.
       (b) Limitation on Carryback.--Section 39(d) of the Internal 
     Revenue Code of 1986 (relating to transition rules) is 
     amended by adding at the end the following new paragraph:
       ``(11) No carryback of railroad track maintenance credit 
     before effective date.--No portion of the unused business 
     credit for any taxable year which is attributable to the 
     railroad track maintenance credit determined under section 
     45I may be carried to a taxable year beginning before January 
     1, 2004.''.
       (c) Conforming Amendments.--
       (1) Section 38(b) of the Internal Revenue Code of 1986 
     (relating to general business credit) is amended by striking 
     ``plus'' at the end of paragraph (14), by striking the period 
     at the end of paragraph (15) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(16) the railroad track maintenance credit determined 
     under section 45I(a).''.
       (2) Subsection (a) of section 1016 of such Code is amended 
     by striking ``and'' at the end of paragraph (27), by striking 
     the period at the end of paragraph (28) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(29) in the case of railroad track with respect to which 
     a credit was allowed under section 45G, to the extent 
     provided in section 45I(e).''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986, as amended by section 5453 of this Act, 
     is further amended by inserting after the item relating to 
     section 45H the following new item:

``Sec. 45I. Railroad track maintenance credit.''.


[[Page S1166]]


       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
                                 ______
                                 
  SA 2509. Mr. SMITH submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 91 (of the Committee Print for the proposed Federal 
     Public Transportation Act of 2004), line 22 in Sec. 3012(a)'s 
     proposed Sec. 5310(a)(1), insert a comma and the following 
     phrase after the words ``transportation projects'': ``and 
     operating costs associated with public transportation capital 
     projects,''
       On page 93, in Sec. 3012(a)'s proposed Sec. 5310(c)(1), 
     replace the words ``IN GENERAL'' with ``CAPITAL PROJECTS'' at 
     line 17, and add the following subparagraph after line 24:
       ``(C) Operating assistance.--A grant made under this 
     section for operating assistance may not exceed 50 percent of 
     the net operating costs of the project, as determined by the 
     Secretary.
                                 ______
                                 
  SA 2510. Mr. GRAHAM of Florida (for himself and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by him to the 
bill S. 1072, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 389, after line 15, insert the following:

     SEC. __. HIGH PRIORITY CORRIDORS.

       Section 1105(c) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2032) is amended by adding 
     at the end the following:
       ``(45) The Corridor consisting of I-95 from the border with 
     Canada to the terminus of I-95 in the State of Florida.
       ``(46) The Corridor consisting of I-75 in the State of 
     Florida.
       ``(47) The Corridor consisting of I-4 in the State of 
     Florida.
       ``(48) United States Route 1 from Maine to its terminus in 
     Florida.
       ``(49) Interstate Route 10 from Jacksonville, Florida, to 
     Los Angeles, California.''.
                                 ______
                                 
  SA 2511. Mr. DASCHLE submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 321, strike lines 15 through 22 and insert the 
     following:
       ``(i) Reservation of funds.--In addition to any other funds 
     made available for Indian reservation roads for each fiscal 
     year, there is authorized to be appropriated from the Highway 
     Trust Fund (other than the Mass Transit Account) $15,000,000 
     for each of fiscal years 2004 through 2009 to carry out 
     planning, design, engineering, for bridges located on Native 
     American lands.
                                 ______
                                 
  SA 2512. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 60, after line 25, add the following:

     SEC. 1106. FUNDING FORMULA.

       Notwithstanding any other provision of this Act, all 
     transportation funding shall be determined using the formula 
     under the Transportation Equity Act for the 21st Century 
     (Public Law 105-178) as in effect before the date of 
     enactment of this Act.
                                 ______
                                 
  SA 2513. Mr. BROWNBACK submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle F of title V, insert the following:

     SEC. __. CREDIT FOR MAINTENANCE OF RAILROAD TRACK;

       (a) Credit for Maintenance of Railroad Track.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45I. RAILROAD TRACK MAINTENANCE CREDIT.

       ``(a) General Rule.--For purposes of section 38, the 
     railroad track maintenance credit determined under this 
     section for the taxable year is 50 percent of the amount of 
     qualified railroad track maintenance expenditures paid or 
     incurred by an eligible taxpayer during the taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     shall not exceed the product of--
       ``(1) $20,000, and
       ``(2) the number of miles of railroad track owned or leased 
     by the taxpayer as of the close of the taxable year.
       ``(c) Qualified Railroad Track Maintenance Expenditures.--
     For purposes of this section, the term `qualified railroad 
     track maintenance expenditures' means expenditures (whether 
     or not otherwise chargeable to capital account) for 
     maintaining railroad track (including roadbed, bridges, and 
     related track structures) owned or leased as of January 1, 
     2004, by the taxpayer of Class II or Class III railroads (as 
     determined by the Surface Transportation Board).
       ``(d) Controlled Groups.--For purposes of subsection (b), 
     rules similar to the rules of paragraph (1) of section 41(f) 
     shall apply for purposes of this subsection.
       ``(e) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     railroad track, the basis of such track shall be reduced by 
     the amount of the credit so allowed.
       ``(f) Application of Section.--This section shall apply to 
     qualified railroad track maintenance expenditures paid or 
     incurred during taxable years beginning after December 31, 
     2003, and before January 1, 2009.
       ``(g) Eligible Taxpayer.--For purposes of this subsection, 
     the term `eligible taxpayer' means--
       ``(1) any person who transports property using the rail 
     facilities of the taxpayer or who furnishes railroad-related 
     property or services to the taxpayer, and
       ``(2) any Class II or Class III railroad.''.
       (2) Limitation on carryback.--Section 39(d) (relating to 
     transition rules), as amended by section 5453, is amended by 
     adding at the end the following new paragraph:
       ``(14) No carryback of railroad track maintenance credit 
     before effective date.--No portion of the unused business 
     credit for any taxable year which is attributable to the 
     railroad track maintenance credit determined under section 
     45G may be carried to a taxable year beginning before January 
     1, 2004.''.
       (3) Conforming Amendments.--
       (A) Section 38(b) (relating to general business credit), as 
     amended by section 5253 of this Act, is amended by striking 
     ``plus'' at the end of paragraph (18), by striking the period 
     at the end of paragraph (19) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(20) the railroad track maintenance credit determined 
     under section 45I(a).''.
       (B) Subsection (a) of section 1016 is amended by striking 
     ``and'' at the end of paragraph (27), by striking the period 
     at the end of paragraph (28) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(29) in the case of railroad track with respect to which 
     a credit was allowed under section 45I, to the extent 
     provided in section 45I(e).''.
       (4) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by this 
     Act, is amended by inserting after the item relating to 
     section 45H the following new item:

``Sec. 45I. Railroad track maintenance credit.''.

       (5) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
       (b) Railroad Revitalization and Security Investment 
     Credit.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45J. RAILROAD REVITALIZATION AND SECURITY INVESTMENT 
                   CREDIT.

       ``(a) General Rule.--For purposes of section 38, the 
     railroad revitalization and security investment credit 
     determined under this section for the taxable year is the 
     amount of qualified project expenditures paid or incurred by 
     an eligible taxpayer during the taxable year.
       ``(b) Qualified Project Expenditures.--For purposes of this 
     section, the term `qualified project expenditures' means 
     expenditures (whether or not otherwise chargeable to capital 
     account) with respect to rail lines which are included in a 
     State rail plan (within the meaning of section 22101 of title 
     49, United States Code) for--
       ``(A) planning and environmental review,
       ``(B) rail line rehabilitation,
       ``(C) upgrades and development of rail lines,
       ``(D) projects for safety and security with respect to rail 
     lines,
       ``(E) passenger equipment acquisition with respect to rail 
     lines,
       ``(F) rail station improvement, and
       ``(G) intermodal facilities development.

     An expenditure shall not be a qualified project expenditure 
     unless there is a written agreement between a State and the 
     owner of the infrastructure improved by the expenditures 
     regarding the use and ownership of such infrastructure, 
     including compensation for such use and assurances regarding 
     the capacity of such infrastructure.
       ``(c) Limitations.--
       ``(1) In general.--The credit allowed under subsection (a) 
     shall not exceed 50 percent of the amount allocated to such 
     project under this subsection.
       ``(2) National limitation.--There is a railroad 
     revitalization and security investment credit limitation of 
     $167,000,000 for each calendar year.

[[Page S1167]]

       ``(3) Allocation of limitation.--The limitation under 
     paragraph (2) shall be allocated by the Secretary to each 
     State with a State rail plan (within the meaning of section 
     22101 of title 49, United States Code) based on the following 
     considerations:
       ``(A) the number of rail miles in active use in the State;
       ``(B) the number of rail cars loaded in the State;
       ``(C) the number of railroad and public road grade 
     crossings in the State;
       ``(D) the number of intercity passenger rail miles; and
       ``(E) the number of intercity passenger embarkations.
       ``(d) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means a taxpayer who is an employer 
     for purposes of the Railroad Retirement Act of 1974 and who 
     is a carrier for purposes of the Railway Labor Act (unless 
     such person is a commuter rail passenger transportation (as 
     defined in section 24102 of title 49, United States Code) 
     operator of a State or local authority (as defined in section 
     5302 of such title) or an Alaska railroad or it contractor).
       ``(e) Controlled Groups.--For purposes of subsection (b), 
     rules similar to the rules of paragraph (1) of section 41(f) 
     shall apply for purposes of this subsection.
       ``(f) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     railroad track, the basis of such track shall be reduced by 
     the amount of the credit so allowed.
       ``(g) Application of Section.--This section shall apply to 
     qualified railroad track maintenance expenditures paid or 
     incurred during taxable years beginning after December 31, 
     2003, and before January 1, 2009.
       ``(h) Credit Transferability.--
       ``(1) In general.--Any credit allowable under this section 
     may be transferred (but not more than once) as provided by 
     the Secretary, and the determination as to whether the credit 
     is allowable shall be made without regard to the tax-exempt 
     status of the transferor.
       ``(2) Minimum price for transfer.--No transfer shall be 
     allowed under this subsection unless the transferor receives 
     compensation for the credit transfer equal to at least 50 
     percent of the amount of credit transferred. The excess of 
     the amount of credit transferred over the compensation 
     received by the transferor for such transfer shall be 
     included in the gross income of the transferee.''.
       (2) Limitation on carryback.--Section 39(d) (relating to 
     transition rules), as amended by subsection (a), is amended 
     by adding at the end the following new paragraph:
       ``(16) No carryback of section 45j credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit determined 
     under section 45J(a) may be carried back to a taxable year 
     beginning on or before the date of the enactment of section 
     45J.''.
       (3) Conforming Amendments.--
       (A) Section 38(b) (relating to general business credit), as 
     amended by subsection (a), is amended by striking ``plus'' at 
     the end of paragraph (19), by striking the period at the end 
     of paragraph (20) and inserting ``, plus'', and by adding at 
     the end the following new paragraph:
       ``(21) the railroad revitalization and security investment 
     credit determined under section 45J(a).''.
       (B) Subsection (a) of section 1016 is amended by striking 
     ``and'' at the end of paragraph (28), by striking the period 
     at the end of paragraph (29) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(30) in the case of qualified projects with respect to 
     which a credit was allowed under section 45J, to the extent 
     provided in section 45J(f).''.
       (4) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by 
     subsection (a), is amended by inserting after the item 
     relating to section 45I the following new item:

``Sec. 45J. Railroad revitalization and security investment credit.''.

       (5) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.

     SEC. __. CONSISTENT AMORTIZATION OF PERIODS FOR INTANGIBLES.

       (a) Start-Up Expenditures.--
       (1) Allowance of deduction.--Paragraph (1) of section 
     195(b) (relating to start-up expenditures) is amended to read 
     as follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection with respect to any start-up 
     expenditures--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the active trade or business begins in 
     an amount equal to the lesser of--
       ``(i) the amount of start-up expenditures with respect to 
     the active trade or business, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such start-up expenditures exceed $50,000, and
       ``(B) the remainder of such start-up expenditures shall be 
     allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the active trade or 
     business begins.''.
       (2) Conforming amendment.--Subsection (b) of section 195 is 
     amended by striking ``Amortize'' and inserting ``Deduct'' in 
     the heading.
       (b) Organizational Expenditures.--Subsection (a) of section 
     248 (relating to organizational expenditures) is amended to 
     read as follows:
       ``(a) Election to Deduct.--If a corporation elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenditures--
       ``(1) the corporation shall be allowed a deduction for the 
     taxable year in which the corporation begins business in an 
     amount equal to the lesser of--
       ``(A) the amount of organizational expenditures with 
     respect to the taxpayer, or
       ``(B) $5,000, reduced (but not below zero) by the amount by 
     which such organizational expenditures exceed $50,000, and
       ``(2) the remainder of such organizational expenditures 
     shall be allowed as a deduction ratably over the 180-month 
     period beginning with the month in which the corporation 
     begins business.''.
       (c) Treatment of Organizational and Syndication Fees or 
     Partnerships.--
       (1) In general.--Section 709(b) (relating to amortization 
     of organization fees) is amended by redesignating paragraph 
     (2) as paragraph (3) and by amending paragraph (1) to read as 
     follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenses--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the partnership begins business in an 
     amount equal to the lesser of--
       ``(i) the amount of organizational expenses with respect to 
     the partnership, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such organizational expenses exceed $50,000, and
       ``(B) the remainder of such organizational expenses shall 
     be allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the partnership begins 
     business.
       ``(2) Dispositions before close of amortization period.--In 
     any case in which a partnership is liquidated before the end 
     of the period to which paragraph (1)(B) applies, any deferred 
     expenses attributable to the partnership which were not 
     allowed as a deduction by reason of this section may be 
     deducted to the extent allowable under section 165.''.
       (2) Conforming amendment.--Subsection (b) of section 709 is 
     amended by striking ``Amortization'' and inserting 
     ``Deduction'' in the heading.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 2514. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1027, strike lines 14 through 18, and insert the 
     following:
       (h) Highway Trust Fund Expenditures for Highway Use Tax 
     Evasion Projects.--Section 9503(c), as amended by this Act, 
     is amended to add at the end the following new paragraph:
       ``(5) Highway use tax evasion projects.--From amounts 
     available in the Highway Trust Fund, there is authorized to 
     be expended--
       ``(A) for each fiscal year after 2003 to the Internal 
     Revenue Service--
       ``(i) $30,000,000 for enforcement of fuel tax compliance, 
     including the per-certification of tax-exempt users,
       ``(ii) $10,000,000 for Xstars, and
       ``(iii) $10,000,000 for xfirs, and
       ``(B) for each fiscal year after 2003 to the Federal 
     Highway Administration, $50,000,000 to be allocated 
     $1,000,000 to each State to combat fuel tax evasion on the 
     State level.''.
                                 ______
                                 
  SA 2515. Mr. KENNEDY submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, please insert the following:

     SEC.  . SENSE OF THE SENATE CONCERNING THE NEED FOR THE 
                   MAXIMUM POSSIBLE AMOUNT OF SURFACE 
                   TRANSPORTATION INVESTMENT OVER THE NEXT SIX 
                   YEARS.

       (a) Findings--The Senate finds that--
       (1) The U.S. Department of Transportation estimates that 
     simply to maintain the current physical conditions and 
     congestion levels of the nation's highway and transit network 
     an annual federal surface transportation investment of $53.6 
     billion is necessary, and that improving the system would 
     require $75 billion in annual federal investment in highways 
     and transit;
       (2) the Senate Environment and Public Works Committee, the 
     Senate Banking, Housing, and Urban Affairs Committee, the 
     Senate Finance Committee, and the Senate Commerce Committee 
     have authorized a substitute amendment that provides $318 
     billion

[[Page S1168]]

     over six years to help address these considerable surface 
     transportation infrastructure needs; and
       (3) the United States Department of Transportation 
     estimates that each $1 billion in surface transportation 
     investment supports more than 47,000 jobs.
       (b) Sense of the Senate.--It is the Sense of the Senate 
     that the Senate should insist that the conference report on 
     S. 1072 provide for a six-year federal investment in highway, 
     transit, and rail infrastructure totaling at least $318 
     billion.
                                 ______
                                 
  SA 2516. Mr. MILLER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 120, line 18, after ``elements'' insert ``, 
     including integrated, interoperable emergency 
     communications,''.
                                 ______
                                 
  SA 2517. Mr. MILLER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 404, line 7, before ``communication'' insert 
     ``integrated, interoperable emergency''.
                                 ______
                                 
  SA 2518. Mr. MILLER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 260, after line 9, insert the following:
       ``(7) if the project or program involves the purchase of 
     integrated, interoperable emergency communications 
     equipment.''.
                                 ______
                                 
  SA 2519. Mr. MILLER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 423, line 14, before ``reliability'' insert 
     ``mobile communications,''.
                                 ______
                                 
  SA 2520. Mr. MILLER submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 423, line 14, before ``reliability'' insert 
     ``mobile communications,''.
                                 ______
                                 
  SA 2521. Mr. MILLER submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 489, after line 23, insert the following:

     SEC. 2105. WIDEBAND MULTI-BAND MOBILE PILOT PROJECTS.

       (a) In General.--The Secretary shall make grants for 
     wideband multi-media mobile pilot projects to demonstrate 
     emergency communications systems that provide wideband, two-
     way information transfer capabilities utilizing the public 
     safety spectrum made available by the Federal Communications 
     Commission in the 700 MHz radio frequency band and that are 
     compliant with the public safety wideband data standard TIA-
     902 as recommended as the wideband data interoperability 
     standard by the Public Safety National Coordinating Committee 
     to the Federal Communications Commission.
       (b) Locations.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall establish 
     locations for pilot projects under this section. In 
     determining pilot project locations, the Secretary shall 
     certify that pilot project locations awarded grants have 
     spectrum available for public safety purposes and are in the 
     700 MHz band pursuant to the Federal Communications 
     Commission's rules.
       (c) Limit on Time.--Grants under this section shall be 
     awarded not later than 12 months after the date of enactment 
     of this Act.
                                 ______
                                 
  SA 2522. Mr. KOHL submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning on page 55, strike line 25 and all that follows 
     through page 57, line 23, and insert the following:
       ``(c) Special Rules.--
       ``(1) Minimum combined allocation.--For each fiscal year, 
     before making the allocations under subsection (a)(1), the 
     Secretary shall allocate among the States amounts sufficient 
     to ensure that no State receives a combined total of amounts 
     allocated under subsection (a)(1), apportionments for the 
     programs specified in subsection (a)(2), and amounts 
     allocated under this subsection, that is less than 110 
     percent of the sum of--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceeds
       ``(B) the sum of--
       ``(i) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2); and
       ``(ii) an amount which is equivalent to--

       ``(I) the amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the excess of the tax rate applicable for a 
     gallon of gasoline over the tax rate applicable for a gallon 
     of gasohol for such years; plus
       ``(II) an amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the amount of the tax rate applicable to a 
     gallon of gasohol which is not deposited into the Highway 
     Trust Fund with respect to each such year.

       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B)(i) are--
       ``(A) for fiscal year 2004, 120 percent;
       ``(B) for fiscal year 2005, 130 percent;
       ``(C) for fiscal year 2006, 134 percent;
       ``(D) for fiscal year 2007, 137 percent;
       ``(E) for fiscal year 2008, 145 percent; and
       ``(F) for fiscal year 2009, 250 percent.''.
       ``(3) No negative adjustment.--Notwithstanding subsection 
     (d), no negative adjustment shall be made under subsection 
     (a)(1) to the apportionment of any State.
       ``(4) Minimum share of tax payments.--Notwithstanding 
     subsection (d), for each fiscal year, the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a percentage of apportionments for the 
     fiscal year for the programs specified in subsection (a)(2) 
     that is less than 90.5 percent of the percentage share of the 
     State of estimated tax payments attributable to highway users 
     in the State paid into the Highway Trust Fund (other than the 
     Mass Transit Account) in the most recent fiscal year for 
     which data are available.
       ``(d) Limitation on Adjustments.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3) of subsection (c), no State shall receive, for any fiscal 
     year, additional amounts under subsection (a)(1) if--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceeds
       ``(B) the sum of--
       ``(i) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2); and
       ``(ii) an amount which is equivalent to--

       ``(I) the amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the excess of the tax rate applicable for a 
     gallon of gasoline over the tax rate applicable for a gallon 
     of gasohol for such years; plus
       ``(II) an amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the amount of the tax rate applicable to a 
     gallon of gasohol which is not deposited into the Highway 
     Trust Fund with respect to each such year.

       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B)(i) are--
       ``(A) for fiscal year 2004, 120 percent;
       ``(B) for fiscal year 2005, 130 percent;
       ``(C) for fiscal year 2006, 134 percent;
       ``(D) for fiscal year 2007, 137 percent;
       ``(E) for fiscal year 2008, 145 percent; and
       ``(F) for fiscal year 2009, 250 percent.''.
                                 ______
                                 
  SA 2523. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1310, line 4, insert the following:
       Vermont Wildlife and Transportation Demonstration 
     Project.--Under the Highways Safety Improvement Program, 
     there is $5,000,000 available to the State of Vermont to 
     research, design and construct connectivity infrastructure to 
     facilitate wildlife movement and improve transportation 
     safety at significant wildlife habitat areas.
                                 ______
                                 
  SA 2524. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr.

[[Page S1169]]

Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1310, line 4, insert the following:
       Wildlife Connectors Research Program.--Under the Highway 
     Research and Technology Program, $15 million is authorized 
     for the Department to work with states to conduct research 
     and data collection to improve the design and placement of 
     connectivity infrastructure to facilitate wildlife movement 
     and improve transportation safety at significant wildlife 
     habitat areas.
                                 ______
                                 
  SA 2525. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

         On page 288, between lines 2 and 3, insert the following:

     SEC. 1622. AIR QUALITY PLANNING INITIATIVE.

       Section 104 of title 23, United States Code (as amended by 
     section 1607(b)), is amended by adding at the end the 
     following:
       ``(o) Air Quality Planning Initiative.--
       ``(1) In general.--The Secretary, in cooperation with the 
     Administrator of the Environmental Protection Agency, shall 
     establish an air quality planning initiative to support State 
     and local governments, or groups of such governments 
     organized to protect air quality in a specific region, in--
       ``(A) developing the technical capacity to perform 
     transportation air quality conformity analysis, including 
     carbon monoxide and particulate matter hot spot analysis;
       ``(B) providing training in areas such as modeling, 
     monitoring, and data collection and synthesis to support air 
     quality planning and analysis;
       ``(C) developing materials and systems to convey air 
     quality information to decisionmakers and the public;
       ``(D) enhancing mobile source monitoring and emission 
     inventorying capabilities; and
       ``(E) carrying out other activities necessary to assist 
     State, regional, and local governments in achieving the 
     national ambient air quality standards.
       ``(2) Use of funds.--
       ``(A) In general.--Funds authorized to be appropriated to 
     carry out this subsection may be used for activities and 
     purposes consistent with paragraph (1), such as--
       ``(i) research;
       ``(ii) program and computer systems development;
       ``(iii) information collection and dissemination;
       ``(iv) technical assistance; and
       ``(v) training.
       ``(B) Cooperation.--To carry out this subsection, the 
     Secretary may, with the concurrence of the Administrator of 
     the Environmental Protection Agency--
       ``(i) use funds under this section independently; or
       ``(ii) make grants to enter into contracts or cooperative 
     agreements with--

       ``(I) Federal, State, and local agencies;
       ``(II) federally-recognized Indian tribal governments and 
     tribal consortia;
       ``(III) associations of State or local governments; and
       ``(IV) nonprofit organizations, research institutions, or 
     institutions of higher education.

       ``(3) Funding.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this subsection 
     $20,000,000 for the period of fiscal years 2004 through 2009, 
     to remain available until expended.
       ``(B) Federal share.--The Federal share of the cost of a 
     project or activity carried out using funds made available 
     under subparagraph (A) shall not exceed 100 percent.''.
                                 ______
                                 
  SA 2526. Mr. JOHNSON submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

         On page 619, strike line 1 and all that follows through 
     page 621, line 8, and insert the following:
       ``(1) Authorization.--The Secretary may award grants to a 
     State for capital public transportation projects that are 
     planned, designed, and carried out to meet the needs of 
     elderly individuals and individuals with disabilities, and 
     for operating costs of equipment and facilities for use in 
     such projects, with priority given to the needs of these 
     individuals to access necessary health care.
       ``(2) Acquisition of public transportation services.--A 
     capital public transportation project under this section may 
     include acquiring public transportation services as an 
     eligible capital expense.
       ``(3) Administrative costs.--A State may use not more than 
     15 percent of the amounts received under this section to 
     administer, plan, and provide technical assistance for a 
     project funded under this section.
       ``(b) Allotments Among States.--
       ``(1) In general.--From amounts made available or 
     appropriated in each fiscal year under subsections 
     (a)(1)(C)(iv) and (b)(2)(D) of section 5338 for grants under 
     this section, the Secretary shall allot amounts to each State 
     under a formula based on the number of elderly individuals 
     and individuals with disabilities in each State.
       ``(2) Transfer of funds.--Any funds allotted to a State 
     under paragraph (1) may be transferred by the State to the 
     apportionments made under sections 5311(c) and 5336 if such 
     funds are only used for eligible projects selected under this 
     section.
       ``(3) Reallocation of funds.--A State receiving a grant 
     under this section may reallocate such grant funds to--
       ``(A) a private nonprofit organization;
       ``(B) a public transportation agency or authority; or
       ``(C) a governmental authority that--
       ``(i) has been approved by the State to coordinate services 
     for elderly individuals and individuals with disabilities;
       ``(ii) certifies that nonprofit organizations are not 
     readily available in the area that can provide the services 
     described under this subsection; or
       ``(iii) will provide services to persons with disabilities 
     that exceed those services required by the Americans with 
     Disabilities Act.
       ``(c) Federal Share.--
       ``(1) Maximum.--
       ``(A) In general.--A grant for a capital project under this 
     section may not exceed 80 percent of the net capital costs of 
     the project, as determined by the Secretary.
       ``(B) Operating costs.--Grant funds for operating costs 
     under this section may not exceed 50 percent of the net 
     operating costs of the project, as determined by the 
     Secretary.
       ``(C) Exception.--A State described in section 120(d) of 
     title 23 shall receive an increased Federal share under 
     subparagraph (A) in accordance with the formula under that 
     section.
                                 ______
                                 
       SA 2527. Mr. HOLLINGS submitted an amendment intended to be 
     proposed to amendment SA 2285 proposed by Mr. Inhofe to the 
     bill S. 1072, to authorize funds for Federal-aid highways, 
     highway safety programs, and transit programs, and for other 
     purposes; which was ordered to lie on the table; as follows:

       Beginning with line 18 on page 1006, strike through lines 
     20 on page 1009 and insert the following:

                    Subtitle F--Rail Transportation

                  Part 1--Railroad Track Modernization

     SEC. 4601. SHORT MILE.

       This part may be cited as the ``Railroad Track 
     Modernization Act of 2004''.

     SEC. 4602. CAPITAL GRANTS FOR RAILROAD TRACK.

       (a) Authority.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec. 22301. Capital grants for railroad track.

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--``(1) Establishment.--The 
     Secretary of Transportation shall establish a program of 
     capital grants for the rehabilitation, preservation, or 
     improvement of railroads. Such grants shall be for rail 
     transportation and ensuring that track can be operated safely 
     and efficiently, including grants for rehabilitating, 
     preserving, or improving track. Grants may be provided under 
     this chapter to a State or a group of States for, or in 
     connection with, 1 or more rail capital projects that--
       ``(A) in accordance with section 634(a)(5) of this title, 
     are listed in a State rail plan approved for such State under 
     chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.

[[Page S1170]]

       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635, there are authorized to be appropriated to the 
     Secretary of Transportation $2,000,000,000 for each of the 
     fiscal years 2005, 2006, 2007, 2008, 2009, 2010 to carry out 
     this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for re-approval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-range Service and Investment Program.--
       ``(1) Program Content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(5) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project List Content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for Project List.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact. .
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``22306. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     Sec. Definitions

       In this chapter:
       ``(1) Private benefit.---The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.

     SEC. 4603. STANDARDS AND CONDITIONS.

       (a) Operators Deemed Rail Carriers and Employers for 
     Certain Purposes.--A person that conducts rail operations 
     over rail infrastructure constructed or improved with funding 
     provided in whole or in part in a grant made under this 
     title--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     SEC. 4604. GRANT PROGRAM FUNDING.

       (a) In General.--Section 250(c)(4) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     900(c)(4)) is amended by adding at the end the following:
       ``(D) Rail infrastructure category.--The term `rail 
     infrastructure category' means discretionary appropriations 
     to the Secretary of Transportation for the provision of 
     grants to States for railroad infrastructure investment 
     activities subject to the obligation limitations on contract 
     authority provided under division B of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004 or 
     for which appropriations are provided in accordance with 
     authorizations contained in that division.''.
       (b) Budget Authority; Outlays.--For purposes of section 
     251(c) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 (2 U.S.C. 901(b)):
       (1) Budget authority.--The budget authority for the rail 
     infrastructure category shall be--
       (A) $300,000,000 for fiscal year 2005;
       (B) $600,000,000 for fiscal year 2006;
       (C) $900,000,000 for fiscal year 2007;
       (D) $1,200,000,000 for fiscal year 2008;
       (E) $1,500,000,000 for fiscal year 2009; and
       (F) $1,500,000,000 for fiscal year 2010.
       (2) Outlays.--The level of outlays for the rail 
     infrastructure category is--
       (A) $60,000,000 for fiscal year 2005;
       (B) $180,000,000 for fiscal year 2006;
       (C) $360,000,000 for fiscal year 2007;
       (D) $480,000,000 for fiscal year 2008;
       (E) $900,000,000 for fiscal year 2009; and
       (F) $1,140,000,000 for fiscal year 2010.
       (c) Applicable Percent.--From funds appropriated to carry 
     out the grant programs authorized by sections 651 and 652, 
     the Secretary of Transportation shall reserve--
       (1) 50 percent for the intercity passenger rail development 
     grant program under section 651; and
       (2) 50 percent for the freight infrastructure development 
     grant program under section 652.
                                 ______
                                 
  SA 2528. Mr. HOLLINGS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which

[[Page S1171]]

was ordered to lie on the table; as follows:

       Beginning with line 18 on page 1006, strike through lines 
     20 on page 1009 and insert the following:

                    Subtitle F--Rail Transportation

                  Part 1--Railroad Track Modernization

     SEC. 4601. SHORT TITLE.

       This part may be cited as the ``Railroad Track 
     Modernization Act of 2004''.

     SEC. 4602. CAPITAL GRANTS FOR RAILROAD TRACK.

       (a) Authority.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) in accordance with section 634(a)(5) of this title, 
     are listed in a State rail plan approved for such State under 
     chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In General.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635, there are authorized to be appropriated to the 
     Secretary of Transportation $2,000,000,000 for each of the 
     fiscal years 2005, 2006, 2007, 2008, 2009, 2010 to carry out 
     this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(5) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22306. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. Definitions

       ``In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and

[[Page S1172]]

       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.

     SEC. 4603. STANDARDS AND CONDITIONS.

       (a) Operators Deemed Rail Carriers and Employers for 
     Certain Purposes.--A person that conducts rail operations 
     over rail infrastructure constructed or improved with funding 
     provided in whole or in part in a grant made under this 
     title--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).
                                 ______
                                 
  SA 2529. Mr. HOLLINGS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Beginning with line 18 on page 1006, strike through lines 
     20 on page 1009 and insert the following:

                    SUBTITLE F--RAIL TRANSPORTATION

                  Part 1--Railroad Track Modernization

     SEC. 4601. SHORT TITLE.

       This part may be cited as the ``Railroad Track 
     Modernization Act of 2004''.

     SEC. 4602. CAPITAL GRANTS FOR RAILROAD TRACK.

       (a) Authority.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) in accordance with section 634(a)(5) of this title, 
     are listed in a State rail plan approved for such State under 
     chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635, there are authorized to be appropriated to the 
     Secretary of Transportation $2,000,000,000 for each of the 
     fiscal years 2005, 2006, 2007, 2008, 2009, 2010 to carry out 
     this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(5) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(1) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22306. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. Definitions

       In this chapter:

[[Page S1173]]

       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.

     SEC. 4603. STANDARDS AND CONDITIONS.

       (a) Operators Deemed Rail Carriers and Employers for 
     Certain Purposes.--A person that conducts rail operations 
     over rail infrastructure constructed or improved with funding 
     provided in whole or in part in a grant made under this 
     title--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     SEC. 4604. GRANT PROGRAM FUNDING.

       (a) In General.--Section 250(c)(4) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     900(c)(4)) is amended by adding at the end the following:
       ``(D) Rail Infrastructure Category.--The term `rail 
     infrastructure category' means discretionary appropriations 
     to the Secretary of Transportation for the provision of 
     grants to States for railroad infrastructure investment 
     activities subject to the obligation limitations on contract 
     authority provided under division B of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2004 or 
     for which appropriations are provided in accordance with 
     authorizations contained in that division.''.
       (b) Budget Authority; Outlays.--For purposes of section 
     251(c) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 (2 U.S.C. 901(b)):
       (1) Budget authority.--The budget authority for the rail 
     infrastructure category shall be--
       (A) $300,000,000 for fiscal year 2005;
       (B) $600,000,000 for fiscal year 2006;
       (C) $900,000,000 for fiscal year 2007;
       (D) $1,200,000,000 for fiscal year 2008;
       (E) $1,500,000,000 for fiscal year 2009; and
       (F) $1,500,000,000 for fiscal year 2010.
       (2) Outlays.--The level of outlays for the rail 
     infrastructure category is--
       (A) $60,000,000 for fiscal year 2005;
       (B) $180,000,000 for fiscal year 2006;
       (C) $360,000,000 for fiscal year 2007;
       (D) $480,000,000 for fiscal year 2008;
       (E) $900,000,000 for fiscal year 2009; and
       (F) $1,140,000,000 for fiscal year 2010.
       (c) Applicable Percent.--From funds appropriated to carry 
     out the grant programs authorized by sections 651 and 652, 
     the Secretary of Transportation shall reserve--
       (1) 50 percent for the intercity passenger rail development 
     grant program under section 651; and
       (2) 50 percent for the freight infrastructure development 
     grant program under section 652.

     SEC. 4605. EXTENSION OF CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``March 31, 2004,'' and inserting ``March 31, 
     2014,''.
                                 ______
                                 
  SA 2530. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike section 601 and add the following after section 662:

                   SUBTITLE D--AMTRAK AUTHORIZATIONS

     SEC. 681. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM 
                   DEFINED.

       (a) In General.--Section 24102 is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively; and
       (3) by inserting after paragraph (4) as so redesignated the 
     following:
       ``(5) `national rail passenger transportation system' 
     means--
       ``(A) the segment of the Northeast Corridor between Boston, 
     Massachusetts and Washington, D.C.;
       ``(B) rail corridors that have been designated by the 
     Secretary of Transportation as high-speed corridors, but only 
     after they have been improved to permit operation of high-
     speed service;
       ``(C) long-distance routes of more than 750 miles between 
     endpoints operated by Amtrak as of the date of enactment of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004; and
       ``(D) short-distance corridors or routes operated by 
     Amtrak.''.
       (b) Amtrak Routes with State Funding.--
       (1) In general.--Chapter 247 is amended by inserting after 
     section 24701 the following:

     ``Sec. 24702. Transportation requested by States, 
       authorities, and other persons

       ``(a) Contracts for Transportation.--Amtrak and a State, a 
     regional or local authority, or another person may enter into 
     a contract for Amtrak to operate an intercity rail service or 
     route not included in the national rail passenger 
     transportation system upon such terms as the parties thereto 
     may agree.
       ``(b) Discontinuance.--Upon termination of a contract 
     entered into under this section, or the cessation of 
     financial support under such a contract by either party, 
     Amtrak may discontinue such service or route, notwithstanding 
     any other provision of law.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     247 is amended by inserting after the item relating to 
     section 24701 the following:

``24702. Transportation requested by States, authorities, and other 
              persons''.

       (c) Amtrak To Continue To Provide Non-High-Speed 
     Services.--Nothing in this subtitle is intended to preclude 
     Amtrak from restoring, improving, or developing non-high-
     speed intercity passenger rail service.

     SEC. 682. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER 
                   CORPORATION.

       (a) In General.--The Secretary of Transportation may not 
     collect any payments of principal or interest for the direct 
     loan made to the National Railroad Passenger Corporation 
     under section 502 of the Railroad Revitalization and 
     Regulatory Reform Act of 1976 (45 U.S.C. 822). There are 
     authorized to be appropriated to the Secretary for fiscal 
     year 2005 $100,000,000 for the purpose of repaying that 
     loan to the Secretary of the Treasury. The Secretary of 
     Transportation shall waive any conditions imposed under 
     the loan.
       (b) Certain Conditions Waived.--Section 151 of the 
     Transportation, Treasury, and Independent Agencies 
     Appropriations Act, 2004, is repealed.
       (c) Federal Railroad Administration.--
       (1) In general.--Section 11123 is amended--
       (A) by striking ``failure of existing commuter rail 
     passenger transportation operations caused by a cessation of 
     service by the National Railroad Passenger Corporation,'' in 
     subsection (a);
       (B) by inserting ``or'' after the semicolon in subsection 
     (a)(3);
       (C) by striking ``permits; or'' in subsection (a)(4) and 
     inserting ``permits.'';
       (D) by striking paragraph (5) of subsection (a);
       (E) by striking ``(A) Except as provided in subparagraph 
     (B), when'' in subsection (b)(3) and inserting ``When'';
       (F) by striking subparagraph (B) of sub section (b)(3);
       (G) by striking paragraph (4) of subsection (c); and
       (H) by striking subsections (e) and (f).
       (2) Section 24301(c) is amended by striking ``11123,''.

     SEC. 683. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

       (a) In General.--The Secretary of the Treasury shall work 
     with the Secretary of Transportation and Amtrak to 
     restructure Amtrak's indebtedness as of the date of enactment 
     of this Act.
       (b) New Debt Prohibition.--Except as approved by the 
     Secretary of Transportation, Amtrak may not enter into any 
     obligation secured by assets of the Corporation after the 
     date of enactment of this Act. This section does not prohibit 
     unsecured lines of credit used by Amtrak or any subsidiary 
     for working capital purposes.
       (c) Debt Redemption.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall enter 
     into negotiations with the holders of Amtrak debt, including 
     leases, that is outstanding on the date of enactment of this 
     Act for the purpose of redeeming or restructuring that debt. 
     The Secretary, in consultation with the Secretary of the 
     Treasury, shall secure agreements for repayment on such terms 
     as the Secretary deems favorable to the interests of the 
     Government. Payments for such redemption may be made after 
     October 1, 2005, in either a single payment or a series of 
     payments, but in no case shall the repayment period extend 
     beyond September 30, 2010.
       (d) Criteria.--In redeeming or restructuring Amtrak's 
     indebtedness, the Secretaries and Amtrak--
       (1) shall ensure that the restructuring imposes the least 
     practicable burden on taxpayers; and
       (2) take into consideration repayment costs, the term of 
     any loan or loans, and market conditions.
       (e) Authorization.--There are authorized to be appropriated 
     to the Secretary such sums as may be necessary for fiscal 
     years 2005 through 2010 to restructure or redeem Amtrak's 
     secured debt.
       (f) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     in its entirety or redeem the debt, there are authorized to 
     be appropriated to the Secretary of

[[Page S1174]]

     Transportation for the use of Amtrak for retirement of 
     principal on loans for capital equipment, or capital leases, 
     not more than the following amounts:
       (A) For fiscal year 2005, $109,500,000.
       (B) For fiscal year 2006, $114,700,000.
       (C) For fiscal year 2007, $202,900,000.
       (D) For fiscal year 2008, $164,300,000.
       (E) For fiscal year 2009, $155,800,000.
       (F) For fiscal year 2010, $203,500,000.
       (2) Interest on debt.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     the payment of interest on loans for capital equipment, or 
     capital leases, the following amounts:
       (A) For fiscal year 2005, $151,300,000.
       (B) For fiscal year 2006, $146,300,000.
       (C) For fiscal year 2007, $137,500,000.
       (D) For fiscal year 2008, $125,300,000.
       (E) For fiscal year 2009, $117,100,000.
       (F) For fiscal year 2010, $107,800,000.
       (3) Reductions in authorization levels.--Whenever action 
     taken by the Secretary of the Treasury under subsection (c) 
     results in reductions in amounts of principle and interest 
     that Amtrak must service on existing debt, Amtrak shall 
     submit to the Senate Committee on Commerce, Science and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, the Senate Committee on 
     Appropriations, and House of Representatives Committee on 
     Appropriations revised requests for amounts authorized by 
     paragraphs (1) and (2) that reflect such reductions.

     SEC. 684. GENERAL AMTRAK AUTHORIZATIONS.

       (a) Repeal of Self-Sufficiency Requirements.--
       (1) Title 49 amendments.--Chapter 241 is amended--
       (A) by striking the last sentence of section 24101(d); and
       (B) by striking the last sentence of section 24104(a).
       (2) Amtrak reform and accountability act amendments.--Title 
     II of the Amtrak Reform and Accountability Act of 1997 (49 
     U.S.C. 24101 nt) is amended by striking sections 204 and 205.
       (3) Common stock redemption date.--Section 415 of the 
     Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 
     nt) is amended by striking subsection (b).
       (b) Lease Arrangements.--Amtrak may obtain services from 
     the Administrator of General Services, and the Administrator 
     may provide services to Amtrak, under section 201(b) and 
     211(b) of the Federal Property and Administrative Service Act 
     of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal 
     years 2005 through 2009.
       (c) Financial Powers.--Section 415(d) of the Amtrak Reform 
     and Accountability Act of 1997 by adding at the end the 
     following:
       ``(3) This section does not affect the applicability of 
     section 3729 of title 31, United States Code, to claims made 
     against Amtrak.''.
       (d) Amtrak Reports.--Section 24315 is amended--
       (1) by striking ``February 15'' in subsection (a) and 
     inserting ``January 31st'';
       (2) by striking subparagraph (B) of subsection (a)(1) and 
     inserting the following:
       ``(B) the route profitability survey data, excluding 
     interest and depreciation costs, or any other route cost 
     allocation or profitability analysis that Amtrak develops;'';
       (3) by striking subparagraph (D) of subsection (a)(1) and 
     inserting the following:
       ``(D) the total revenue-to-total cost ratio;'';
       (4) by striking subparagraphs (C), (F), and (G) of 
     subsection (a)(1), and redesignating subparagraphs (D), (E), 
     and (H) as subparagraphs (C), (D), and (E), respectively; and
       (5) by striking ``February 15'' in subsection (b) and 
     inserting ``January 31st''.

     SEC. 685. EXCESS RAILROAD RETIREMENT.

       Beginning in fiscal year 2005, the Secretary of the 
     Treasury each year shall pay to the Railroad Retirement 
     Account an amount equal to the amount Amtrak must pay under 
     section 3221 of the Internal Revenue Code of 1986 in fiscal 
     years that is more than the amount needed for benefits for 
     individuals who retire from Amtrak and for their 
     beneficiaries. There are authorized to be appropriated such 
     sums as may be necessary in each fiscal year beginning after 
     fiscal year 2005 through 2010 for these payments.

     SEC. 686. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND 
                   STATION IMPROVEMENTS.

       (a) Environmental Compliance.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak in order to comply with environmental regulations 
     the following amounts:
       (A) For fiscal year 2005, $18,800,000.
       (B) For fiscal year 2006, $21,700,000.
       (C) For fiscal year 2007, $22,300,000.
       (D) For fiscal year 2008, $15,100,000.
       (E) For fiscal year 2009, $15,900,000.
       (F) For fiscal year 2010, $16,000,000.
       (b) Capital Improvements to Stations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Transportation for the use of Amtrak for 
     capital improvements to stations, including an initial 
     assessment of the full set of accessibility needs across the 
     national rail passenger transportation system and improved 
     accessibility for the elderly and people with disabilities 
     and in Amtrak facilities and stations, the following amounts:
       (A) For fiscal year 2005, $17,100,000.
       (B) For fiscal year 2006, $19,800,000.
       (C) For fiscal year 2007, $19,800,000.
       (D) For fiscal year 2008, $19,000,000.
       (E) For fiscal year 2009, $19,000,000.
       (F) For fiscal year 2010, $19,000,000.
       (2) Study of compliance requirements at existing intercity 
     rail stations.--Amtrak shall evaluate the improvements 
     necessary to make all existing stations it serves readily 
     accessible to and usable by individuals with disabilities, as 
     required by section 242(e)(2) of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The 
     evaluation shall include the estimated cost of the 
     improvements necessary, the identification of the responsible 
     person (as defined in section 241(5) of that Act (42 U.S.C. 
     12161(5))), and the earliest practicable date when such 
     improvements can be made. Amtrak shall submit the survey to 
     the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the National Council 
     on Disability by September 30, 2005, along with 
     recommendations for funding the necessary improvements.

     SEC. 687. TUNNEL LIFE SAFETY.

       (a) Life Safety Needs.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for fiscal year 2005:
       (1) $677,000,000 for the 6 New York tunnels built in 1910 
     to provide ventilation, electrical, and fire safety 
     technology upgrades, emergency communication and lighting 
     systems, and emergency access and egress for passengers.
       (2) $57,000,000 for the Baltimore & Potomac tunnel built in 
     1872 to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades.
       (3) $40,000,000 for the Washington, D.C., Union Station 
     tunnels built in 1904 under the Supreme Court and House and 
     Senate Office Buildings to improve ventilation, 
     communication, lighting, and passenger egress upgrades.
       (b) Infrastructure Upgrades.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak $3,000,000 for fiscal year 2005 for the preliminary 
     design of options for a new tunnel on a different alignment 
     to augment the capacity of the existing Baltimore tunnels.
       (c) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all life safety portions of the tunnel projects 
     described in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other rail carriers toward the costs 
     of the projects; and
       (3) obtain financial contributions or commitments from such 
     other rail carriers if feasible.
       (d) Availability of Funds.--Amounts appropriated pursuant 
     to this section shall remain available until expended.

     SEC. 688. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

       (a) Operating Expenses.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for operating costs the following amounts:
       (1) For fiscal year 2005, $581,400,000.
       (2) For fiscal year 2006, $566,700,000.
       (3) For fiscal year 2007, $557,700,000.
       (4) For fiscal year 2008, $528,500,000.
       (5) For fiscal year 2009, $522,000,000.
       (6) For fiscal year 2010, $522,000,000.
       (b) Capital Backlog and Upgrades.--There are authorized to 
     be appropriated to the Secretary of Transportation for the 
     use of Amtrak for capital expenses, the following amounts:
       (1) For fiscal year 2005, $741,500,000.
       (2) For fiscal year 2006, $835,200,000.
       (3) For fiscal year 2007, $760,800,000.
       (4) For fiscal year 2008, $733,600,000.
       (5) For fiscal year 2009, $774,300,000.
       (6) For fiscal year 2010, $874,300,000.
       (c) Replacement Equipment.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for the purchase of replacement passenger rail 
     equipment the following amounts:
       (1) For fiscal year 2006, $250,000,000.
       (2) For fiscal year 2007, $250,000,000.
       (3) For fiscal year 2008, $350,000,000.
       (4) For fiscal year 2009, $350,000,000.
       (5) For fiscal year 2010, $350,000,000.

     SEC. 689. GRANTS NOT CONSIDERED TO REPLACE FEDERAL OPERATING 
                   OR CAPITAL SUPPORT.

       Grants or assistance provided directly to a State or group 
     of States by the Secretary under this title for rail 
     infrastructure investments shall not be considered to reduce 
     or replace the authorizations or the need for annual Federal 
     appropriations for the National Railroad Passenger 
     Corporation.

     SEC. 690. ESTABLISHMENT OF GRANT PROCESS.

       (a) Grant Requests.--Amtrak shall submit grant requests to 
     the Secretary of Transportation for funds authorized to be 
     appropriated to the Secretary for the use of Amtrak under 
     sections 686, 687, and 688.
       (b) Procedures for Grant Requests.--The Secretary shall 
     establish substantive and procedural requirements, including 
     schedules, for grant requests under this section not later 
     than 30 days after the date of enactment of this Act and 
     shall transmit copies to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.
       (c) Review and Approval.--

[[Page S1175]]

       (1) 30-day process.--The Secretary shall complete the 
     review of a grant request and approve or disapprove the 
     request within 30 days after the date on which Amtrak submits 
     the grant request.
       (2) Incomplete or deficient requests.--If the Secretary 
     disapproves the request or determines that the request is 
     incomplete or deficient, the Secretary shall immediately 
     notify Amtrak of the reason for disapproval or the incomplete 
     items or deficiencies. Within 15 days after receiving 
     notification from the Secretary under the preceding sentence, 
     Amtrak shall submit a modified request for the Secretary's 
     review.
       (3) Revised requests.--Within 15 days after receiving a 
     modified request from Amtrak, the Secretary shall either 
     approve the modified request, or, if the Secretary finds that 
     the request is still incomplete or deficient, the Secretary 
     shall identify in writing to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure the remaining deficiencies and recommend a 
     process for resolving the outstanding portions of the 
     request.

     SEC. 691. STATE-SUPPORTED ROUTES.

       The Board of Directors of Amtrak, in consultation with the 
     Secretary of Transportation and the chief executive officer 
     of each State and the District of Columbia, shall develop a 
     formula for funding the operating costs of trains operating 
     on routes not in excess of 750 miles in length that--
       (1) is equitable and fair; and
       (2) ensures, within 5 years after the date of enactment of 
     this Act, equal treatment of all States (and the District of 
     Columbia) and groups of States (including the District of 
     Columbia).

     SEC. 692. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY 
                   COMMITTEE.

       (a) Re-establishment of Northeast Corridor Safety 
     Committee.--The Secretary of Transportation shall re-
     establish the Northeast Corridor Safety Committee authorized 
     by section 24905(b) of title 49, United States Code.
       (b) Termination Date.--Section 24905(b)(4) is amended by 
     striking ``January 1, 1999,'' and inserting ``January 1, 
     2009,''.

     SEC. 693. AMTRAK BOARD OF DIRECTORS.

       Section 24302 is amended to read as follows:

     ``Sec. 24302. Board of directors

       ``(a) Composition and Terms.--
       ``(1) The board of directors of Amtrak is composed of the 
     following 9 directors, each of whom must be a citizen of the 
     United States:
       ``(A) The President of Amtrak.
       ``(B) The Secretary of Transportation.
       ``(C) 7 individuals appointed by the President of the 
     United States, by and with the advice and consent of the 
     Senate, with experience and qualifications in or directly 
     related to rail transportation, including representatives of 
     freight and passenger rail transportation, travel, 
     hospitality, cruise line, and passenger air transportation 
     businesses, consumers of passenger rail transportation, and 
     State government.
       ``(2) In selecting individuals described in paragraph (1) 
     for nominations for appointments to the Board, the President 
     shall consult with the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate and should ensure adequate and 
     balanced representation of the major geographic regions of 
     the United States.
       ``(3) Each member shall be appointed for a term of 5 years 
     and until the individual's successor is appointed and 
     qualified. Not more than 4 individuals appointed under 
     paragraph (1)(C) may be members of the same political party.
       ``(4) The board shall elect a chairman and a vice chairman 
     from among its membership. The vice chairman shall serve as 
     chairman in the absence of the chairman.
       ``(5) The Secretary may be represented at board meetings by 
     the Secretary's designee.
       ``(b) Pay and Expenses.--Each director not employed by the 
     United States Government is entitled to $300 a day when 
     performing board duties and powers. Each director is 
     entitled to reimbursement for necessary travel, reasonable 
     secretarial and professional staff support, and 
     subsistence expenses incurred in attending board meetings.
       ``(c) Vacancies.--A vacancy on the board is filled in the 
     same way as the original selection, except that an individual 
     appointed by the President of the United States under 
     subsection (a)(1)(C) of this section to fill a vacancy 
     occurring before the end of the term for which the 
     predecessor of that individual was appointed is appointed for 
     the remainder of that term. A vacancy required to be filled 
     by appointment under subsection (a)(1)(C) must be filled not 
     later than 120 days after the vacancy occurs.
       ``(d) Bylaws.--The board may adopt and amend bylaws 
     governing the operation of Amtrak. The bylaws shall be 
     consistent with this part and the articles of 
     incorporation.''.

     SEC. 694. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR 
                   AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

       (a) In General.--The Inspector General of the Department of 
     Transportation shall employ an independent financial 
     consultant with experience in railroad accounting--
       (1) to assess Amtrak's financial accounting and reporting 
     system and practices;
       (2) to design and assist Amtrak in implementing a modern 
     financial accounting and reporting system, on the basis of 
     the assessment, that will produce accurate and timely 
     financial information in sufficient detail--
       (A) to enable Amtrak to assign revenues and expenses 
     appropriately to each of its lines of business and to each 
     major activity within each line of business activity, 
     including train operations, equipment maintenance, ticketing, 
     and reservations;
       (B) to aggregate expenses and revenues related to 
     infrastructure and distinguish them from expenses and 
     revenues related to rail operations; and
       (C) to provide ticketing and reservation information on a 
     real-time basis.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $2,500,000 for fiscal year 2005 to carry out subsection (a), 
     such sums to remain available until expended.

     SEC. 695. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

       (a) Development of 5-Year Financial Plan.--The Amtrak board 
     of directors shall submit an annual budget for Amtrak, and a 
     5-year financial plan for the fiscal year to which that 
     budget relates and the subsequent 4 years, prepared in 
     accordance with this section, to the Secretary of 
     Transportation and the Inspector General of the Department of 
     Transportation no later than--
       (1) the first day of each fiscal year beginning after the 
     date of enactment of this Act; or
       (2) the date that is 60 days after the date of enactment of 
     an appropriation Act for the fiscal year, if later.
       (b) Contents of 5-Year Financial Plan.--The 5-year 
     financial plan for Amtrak shall include, at a minimum--
       (1) all projected revenues and expenditures for Amtrak, 
     including governmental funding sources,
       (2) projected ridership levels for all Amtrak passenger 
     operations;
       (3) revenue and expenditure forecasts for nonpassenger 
     operations;
       (4) capital funding requirements and expenditures necessary 
     to maintain passenger service which will accommodate 
     predicted ridership levels and predicted sources of capital 
     funding;
       (5) operational funding needs, if any, to maintain current 
     and projected levels of passenger service, including state-
     supported routes and predicted funding sources;
       (6) projected capital and operating requirements, 
     ridership, and revenue for any new passenger service 
     operations or service expansions;
       (7) an assessment of the continuing financial stability of 
     Amtrak, as indicated by factors such as: the ability of the 
     federal government to adequately meet capital and operating 
     requirements, Amtrak's access to long-term and short-term 
     capital markets, Amtrak's ability to efficiently manage its 
     workforce, and Amtrak's ability to effectively provide 
     passenger train service.
       (8) lump sum expenditures of $10,000,000 or more and 
     sources of funding.
       (9) estimates of long-term and short-term debt and 
     associated principle and interest payments (both current and 
     anticipated);
       (10) annual cash flow forecasts; and
       (11) a statement describing methods of estimation and 
     significant assumptions.
       (C) Standards to Promote Financial Stability.--In meeting 
     the requirements of subsection (b) with respect to a 5-year 
     financial plan, Amtrak shall--
       (1) apply sound budgetary practices, including reducing 
     costs and other expenditures, improving productivity, 
     increasing revenues, or combinations of such practices; and
       (2) use the categories specified in the financial 
     accounting and reporting system developed under section 652 
     when preparing its 5-year financial plan.
       (d) Assessment by DOT Inspector General.--
       (1) In general.--The Inspector General of the Department of 
     Transportation shall assess the 5-year financial plans 
     prepared by Amtrak under this section to determine whether 
     they meet the requirements of subsection (b), and may suggest 
     revisions to any components thereof that do not meet those 
     requirements.
       (2) Assessment to be furnished to the congress.--The 
     Inspector General shall furnish to the House of 
     Representatives Committee on Appropriations, the Senate 
     Committee on Appropriations, the House of Representatives 
     Committee on Transportation and Infrastructure, and the 
     Senate Committee on Commerce, Science, and Transportation--
       (A) an assessment of the annual budget within 90 days after 
     receiving it from Amtrak; and
       (B) an assessment of the remaining 4 years of the 5-year 
     financial plan within 180 days after receiving it from 
     Amtrak.

     SEC. 696. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR 
                   AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

       (a) Review.--The Secretary of Transportation shall, in 
     consultation with the Federal Railroad Administration, 
     execute a contract to obtain the services of an independent 
     auditor or consultant to research

[[Page S1176]]

     and define Amtrak's past and current methodologies for 
     determining intercity passenger rail routes and services.
       (b) Recommendations.--The independent auditor or consultant 
     shall recommend objective methodologies for determining such 
     routes and services, including the establishment of new 
     routes, the elimination of existing routes, and the 
     contraction or expansion of services or frequencies over such 
     routes.
       (c) Submittal to Congress.--The Secretary shall submit 
     recommendations received under subsection (b) to Amtrak, the 
     House of Representatives Committee on Transportation and 
     Infrastructure, and the Senate Committee on Commerce, 
     Science, and Transportation.
       (d) Authorization of Appropriations.--There are authorized 
     to be made available to the Secretary of Transportation, out 
     of any amounts authorized by this title to be appropriated 
     for the benefit of Amtrak and not otherwise obligated or 
     expended, such sums as may be necessary to carry out this 
     section.

     SEC. 697. METRICS AND STANDARDS.

       The Administrator of the Federal Railroad Administration 
     shall, in consultation with Amtrak and host railroads, 
     develop new or improve existing metrics and minimum standards 
     for measuring the service quality of intercity train 
     operations, including on-time performance, on-board services, 
     stations, facilities, equipment, and other services.

     SEC. 698. ON-TIME PERFORMANCE.

       Section 24308 is amended by adding at the end the 
     following:
       ``(f) On-Time Performance and Other Standards.--If the on-
     time performance of any intercity passenger train averages 
     less than 80 percent for any consecutive 6-month period, or 
     the service quality of intercity train operations for which 
     minimum standards are established under section 697 of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 Act fails to meet those standards, Amtrak 
     may petition the Surface Transportation Board to investigate 
     whether, and to what extent, delays or failure to achieve 
     minimum standards are due to causes that could reasonably be 
     addressed by a rail carrier over the tracks of which the 
     intercity passenger train operates, or by a regional 
     authority providing commuter service, if any. In carrying out 
     such an investigation, the Surface Transportation Board shall 
     obtain information from all parties involved and make 
     recommendations regarding reasonable measures to improve the 
     service, quality, and on-time performance of the train.''.

     SEC. 699. RAIL COOPERATIVE RESEARCH PROGRAM.

       (a) Requirement for Program.--
       (1) Establishment and content.--Chapter 249 is amended by 
     adding at the end the following:

     ``Sec. 24910. Rail cooperative research program

       ``(a) In General.--The Secretary shall establish and carry 
     out a rail cooperative research program. The program shall--
       ``(1) address, among other matters, intercity rail 
     passenger services, including existing rail passenger 
     technologies and speeds, incrementally enhanced rail systems 
     and infrastructure, and new high-speed wheel-on-rail systems 
     and rail security;
       ``(2) consider research on the interconnectedness of 
     commuter rail, passenger rail, and other rail networks; and
       ``(3) give consideration to regional concerns regarding 
     rail passenger transportation, including meeting research 
     needs common to designated high speed corridors, long-
     distance rail services, and regional intercity rail 
     corridors, projects, and entities.
       ``(b) Content.--The program to be carried out under this 
     section shall include research designed--
       ``(1) to identify the unique aspects and attributes of rail 
     passenger service;
       ``(2) to develop more accurate models for evaluating the 
     impact of rail passenger service, including the effects on 
     highway and airport and airway congestion, environmental 
     quality, and energy consumption;
       ``(3) to develop a better understanding of modal choice as 
     it affects rail passenger transportation, including 
     development of better models to predict utilization;
       ``(4) to recommend priorities for technology demonstration 
     and development;
       ``(5) to meet additional priorities as determined by the 
     advisory board established under subsection (c), including 
     any recommendations made by the National Research Council;
       ``(6) to explore improvements in management, financing, and 
     institutional structures;
       ``(7) to address rail capacity constraints that affect 
     passenger rail service through a wide variety of options, 
     ranging from operating improvements to dedicated new 
     infrastructure, taking into account the impact of such 
     options on operations;
       ``(8) to improve maintenance, operations, customer service, 
     or other aspects of intercity rail passenger service;
       ``(9) to recommend objective methodologies for determining 
     intercity passenger rail routes and services, including the 
     establishment of new routes, the elimination of existing 
     routes, and the contraction or expansion of services or 
     frequencies over such routes;
       ``(10) to review the impact of equipment and operational 
     safety standards on the further development of high speed 
     passenger rail operations connected to or integrated with 
     non-high speed freight or passenger rail operations; and
       ``(11) to recommend any legislative or regulatory changes 
     necessary to foster further development and implementation of 
     high speed passenger rail operations while ensuring the 
     safety of such operations that are connected to or integrated 
     with non-high speed freight or passenger rail operations.
       ``(c) Advisory Board.--
       ``(1) Establishment.--In consultation with the heads of 
     appropriate Federal departments and agencies, the Secretary 
     shall establish an advisory board to recommend research, 
     technology, and technology transfer activities related to 
     rail passenger and freight transportation.
       ``(2) Membership.--The advisory board shall include--
       ``(A) representatives of State transportation agencies;
       ``(B) transportation and environmental economists, 
     scientists, and engineers; and
       ``(C) representatives of Amtrak, the Alaska Railroad, 
     transit operating agencies, intercity rail passenger 
     agencies, railway labor organizations, and environmental 
     organizations.
       ``(d) National Academy of Sciences.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     National Academy of Sciences to carry out such activities 
     relating to the research, technology, and technology transfer 
     activities described in subsection (b) as the Secretary deems 
     appropriate.''.
       (2) Clerical Amendment.--The chapter analysis for chapter 
     249 is amended by adding at the end the following:

``24910. Rail cooperative research program''.

       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $5,000,000 for each of fiscal years 2005 through 2010 to 
     carry out the rail cooperative research program under section 
     24910 of title 49, United States Code.
       Strike section 4601 and add the following after section 
     4662:

                     PART 4--AMTRAK AUTHORIZATIONS

     SEC. 4681. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM 
                   DEFINED.

       (a) In General.--Section 24102 is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively; and
       (3) by inserting after paragraph (4) as so redesignated the 
     following:
       ``(5) `national rail passenger transportation system' 
     means--
       ``(A) the segment of the Northeast Corridor between Boston, 
     Massachusetts and Washington, D.C.;
       ``(B) rail corridors that have been designated by the 
     Secretary of Transportation as high-speed corridors, but only 
     after they have been improved to permit operation of high-
     speed service;
       ``(C) long-distance routes of more than 750 miles between 
     endpoints operated by Amtrak as of the date of enactment of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004; and
       ``(D) short-distance corridors or routes operated by 
     Amtrak.''.
       (b) Amtrak Routes With State Funding.--
       (1) In general.--Chapter 247 is amended by 1 inserting 
     after section 24701 the following:

     ``24702. Transportation requested by States, authorities, and 
       other persons

       ``(a) Contracts for, Transportation.--Amtrak and a State, a 
     regional or local authority, or another person may enter into 
     a contract for Amtrak to operate an intercity rail service or 
     route not included in the national rail passenger 
     transportation system upon such terms as the parties thereto 
     may agree.
       ``(b) Discontinuance.--Upon termination of a contract 
     entered into under this section, or the cessation of 
     financial support under such a contract by either party, 
     Amtrak may discontinue such service or route, notwithstanding 
     any other provision of law.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     247 is amended by inserting after the item relating to 
     section 24701 the following:

``24702. Transportation requested by States, authorities, and other 
              persons''.

       (c) Amtrak To Continue To Provide Non-High-speed 
     Services.--Nothing in this subtitle is intended to preclude 
     Amtrak from restoring, improving, or developing non-high-
     speed intercity passenger rail service.

     SEC. 4682. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER 
                   CORPORATION.

       (a) In General.--The Secretary of Transportation may not 
     collect any payments of principal or interest for the direct 
     loan made to the National Railroad Passenger Corporation 
     under section 502 of the Railroad Revitalization and 
     Regulatory Reform Act of 1976 (45 U.S.C. 822). There are 
     authorized to be appropriated to the Secretary for fiscal 
     year 2005 $100,000,000 for the purpose of repaying that loan 
     to the Secretary of the Treasury. The Secretary of 
     Transportation shall waive any conditions imposed under the 
     loan.
       (b) Certain Conditions Waived.--Section 151 of the 
     Transportation, Treasury, and Independent Agencies 
     Appropriations Act, 2004, is repealed.
       (c) Federal Railroad Administration.--
       (1) In general--Section 11123 is amended--
       (A) by striking ``failure of existing commuter rail 
     passenger transportation operations caused by a cessation of 
     service by the

[[Page S1177]]

     National Railroad Passenger Corporation,'' in subsection (a);
       (B) by inserting ``or'' after the semicolon in subsection 
     (a)(3);
       (C) by striking ``permits; or'' in subsection (a)(4) and 
     inserting ``permits.'';
       (D) by striking paragraph (5) of subsection (a);
       (E) by striking ``(A) Except as provided in subparagraph 
     (B), when'' in subsection (b)(3) and inserting ``When'';
       (F) by striking subparagraph (B) of subsection (b)(3);
       (G) by striking paragraph (4) of subsection (c); and
       (H) by striking subsections (e) and (f).
       (2) Section 24301(c) is amended by striking ``11123,''.

     SEC. 4683. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL 
                   LEASES.

       (a) In General.--The Secretary of the Treasury shall work 
     with the Secretary of Transportation and Amtrak to 
     restructure Amtrak's indebtedness as of the date of enactment 
     of this Act.
       (b) New Debt Prohibition.--Except as approved by the 
     Secretary of Transportation, Amtrak may not enter into any 
     obligation secured by assets of the Corporation after the 
     date of enactment of this Act. This section does not prohibit 
     unsecured lines of credit used by Amtrak or any subsidiary 
     for working capital purposes.
       (c) Debt Redemption.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall enter 
     into negotiations with the holders of Amtrak debt, including 
     leases, that is outstanding on the date of enactment of this 
     Act for the purpose of redeeming or restructuring that debt. 
     The Secretary, in consultation with the Secretary of the 
     Treasury, shall secure agreements for repayment on such terms 
     as the Secretary deems favorable to the interests of the 
     Government. Payments for such redemption may be made after 
     October 1, 2005, in either a single payment or a series of 
     payments, but in no case shall the repayment period extend 
     beyond September 30, 2010.
       (d) Criteria.--In redeeming or restructuring Amtrak's 
     indebtedness, the Secretaries and Amtrak--
       (1) shall ensure that the restructuring imposes the least 
     practicable burden on taxpayers; and
       (2) take into consideration repayment costs, the term of 
     any loan or loans, and market conditions.
       (e) Authorization.--There are authorized to be appropriated 
     to the Secretary such sums as may be necessary for fiscal 
     years 2005 through 2010 to restructure or redeem Amtrak's 
     secured debt.
       (f) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     in its entirety or redeem the debt, there are authorized to 
     be appropriated to the Secretary of Transportation for the 
     use of Amtrak for retirement of principal on loans for 
     capital equipment, or capital leases, not more than the 
     following amounts:
       (A) For fiscal year 2005, $109,500,000.
       (B) For fiscal year 2006, $114,700,000.
       (C) For fiscal year 2007, $202,900,000.
       (D) For fiscal year 2008, $164,300,000.
       (E) For fiscal year 2009, $155,800,000.
       (F) For fiscal year 2010, $203,500,000.
       (2) Interest on debt.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     the payment of interest on loans for capital equipment, or 
     capital leases, the following amounts:
       (A) For fiscal year 2005, $151,300,000.
       (B) For fiscal year 2006, $146,300,000.
       (C) For fiscal year 2007, $137,500,000.
       (D) For fiscal year 2008, $125,300,000.
       (E) For fiscal year 2009, $117,100,000.
       (F) For fiscal year 2010, $107,800,000.
       (3) Reductions in authorization on levels.--Whenever action 
     taken by the Secretary of the Treasury under subsection (c) 
     results in reductions in amounts of principle and interest 
     that Amtrak must service on existing debt, Amtrak shall 
     submit to the Senate Committee on Commerce, Science and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, the Senate Committee on 
     Appropriations, and House of Representatives Committee on 
     Appropriations revised requests for amounts authorized by 
     paragraphs (1) and (2) that reflect the such reductions.

     SEC. 4684. GENERAL AMTRAK AUTHORIZATIONS.

       (a) Repeal of Self-Sufficiency Requirements.
       (1) Title 49 amendments.--Chapter 241 is amended--
       (A) by striking the last sentence of section 24101(d); and
       (B) by striking the last sentence of section 24104(a).
       (2) Amtrak reform and accountability act amendments.--Title 
     II of the Amtrak Reform and Accountability Act of 1997 (49 
     U.S.C. 24101 nt) is amended by striking sections 204 and 205.
       (3) Common stock redemption date.--Section 415 of the 
     Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 
     nt) is amended by striking subsection (b).
       (b) Lease Arrangements.--Amtrak may obtain services from 
     the Administrator of General Services, and the Administrator 
     may provide services to Amtrak, under section 201(b) and 
     211(b) of the Federal Property and Administrative Service Act 
     of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal 
     years 2005 through 2009.
       (c) Financial Powers.--Section 415(d) of the Amtrak Reform 
     and Accountability Act of 1997 by adding at the end the 
     following:
       ``(3) This section does not affect the applicability of 
     section 3729 of title 31, United States Code, to claims made 
     against Amtrak.''.
       (d) Amtrak Reports.--Section 24315 is amended--
       (1) by striking ``February 15'' in subsection (a) and 
     inserting ``January 31st'';
       (2) by striking subparagraph (B) of subsection (a)(1) and 
     inserting the following:
       ``(B) the route profitability survey data, excluding 
     interest and depreciation costs, or any other route cost 
     allocation or profitability analysis that Amtrak develops;'';
       (3) by striking subparagraph (D) of subsection (a)(1) and 
     inserting the following:
       ``(D) the total revenue-to-total cost ratio;'';
       (4) by striking subparagraphs (C), (F), and (G) of 
     subsection (a)(1), and redesignating subparagraphs (D), (E), 
     and (H) as subparagraphs (C), (D), and (E), respectively; and
       (5) by striking ``February 15'' in subsection (b) and 
     inserting ``January 31st''.

     SEC. 4685. EXCESS RAILROAD RETIREMENT.

       Beginning in fiscal year 2005, the Secretary of the 
     Treasury each year shall pay to the Railroad Retirement 
     Account an amount equal to the amount Amtrak must pay under 
     section 3221 of the Internal Revenue Code of 1986 in fiscal 
     years that is more than the amount needed for benefits for 
     individuals who retire from Amtrak and for their 
     beneficiaries. There are authorized to be appropriated such 
     sums as may be necessary in each fiscal year beginning after 
     fiscal year 2005 through 2010 for these payments.

     SEC. 4686. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND 
                   STATION IMPROVEMENTS.

       (a) Environmental Compliance.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak in order to comply with environmental regulations 
     the following amounts:
       (A) For fiscal year 2005, $18,800,000.
       (B) For fiscal year 2006, $21,700,000.
       (C) For fiscal year 2007, $22,300,000.
       (D) For fiscal year 2008, $15,100,000.
       (E) For fiscal year 2009, $15,900,000.
       (F) For fiscal year 2010, $16,000,000.
       (b) Capital Improvements to Stations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Transportation for the use of Amtrak for 
     capital improvements to stations, including an initial 
     assessment of the full set of accessibility needs across the 
     national rail passenger transportation system and improved 
     accessibility for the elderly and people with disabilities 
     and in Amtrak facilities and stations, the following amounts:
       (A) For fiscal year 2005, $17,100,000.
       (B) For fiscal year 2006, $19,800,000.
       (C) For fiscal year 2007, $19,800,000.
       (D) For fiscal year 2008, $19,000,000.
       (E) For fiscal year 2009, $19,000,000.
       (F) For fiscal year 2010, $19,000,000.
       (2) Study of compliance requirements at existing intercity 
     rail stations.--Amtrak shall evaluate the improvements 
     necessary to make all existing stations it serves readily 
     accessible to and usable by individuals with disabilities, as 
     required by section 242(e)(2) of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The 
     evaluation shall include the estimated cost of the 
     improvements necessary, the identification of the responsible 
     person (as defined in section 241(5) of that Act (42 U.S.C. 
     12161(5))), and the earliest practicable date when such 
     improvements can be made. Amtrak shall submit the survey to 
     the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the National Council 
     on Disability by September 30, 2005, along with 
     recommendations for funding the necessary improvements.

     SEC. 4687. TUNNEL LIFE SAFETY.

       (a) Life Safety Needs.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for fiscal year 2005:
       (1) $677,000,000 for the 6 New York tunnels built in 1910 
     to provide ventilation, electrical, and fire safety 
     technology upgrades, emergency communication and lighting 
     systems, and emergency access and egress for passengers.
       (2) $57,000,000 for the Baltimore & Potomac tunnel built in 
     1872 to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades.
       (3) $40,000,000 for the Washington, D.C., Union Station 
     tunnels built in 1904 under the Supreme Court and House and 
     Senate Office Buildings to improve ventilation, 
     communication, lighting, and passenger egress upgrades.
       (b) Infrastructure Upgrades.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak $3,000,000 for fiscal year 2005 for the preliminary 
     design of options for a new tunnel on a different alignment 
     to augment the capacity of the existing Baltimore tunnels.
       (d) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all life safety portions of the tunnel projects 
     described in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other rail carriers toward the costs 
     of the projects; and
       (3) obtain financial contributions or commitments from such 
     other rail carriers if feasible.

[[Page S1178]]

       (e) Availability of Funds.--Amounts appropriated pursuant 
     to this section shall remain available until expended.

     SEC. 4688. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

       (a) Operating Expenses.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for operating costs the following amounts:
       (1) For fiscal year 2005, $581,400,000.
       (2) For fiscal year 2006, $566,700,000.
       (3) For fiscal year 2007, $557,700,000.
       (4) For fiscal year 2008; $528,500,000.
       (5) For fiscal year 2009, $522,000,000.
       (6) For fiscal year 2010, $522,000,000.
       (b) Capital Backlog and Upgrades.--There are authorized to 
     be appropriated to the Secretary of Transportation for the 
     use of Amtrak for capital expenses, the following amounts:
       (1) For fiscal year 2005, $741,500,000.
       (2) For fiscal year 2006, $835,200,000.
       (3) For fiscal year 2007, $760,800,000.
       (4) For fiscal year 2008, $733,600,000.
       (5) For fiscal year 2009, $774,300,000.
       (6) For fiscal year 2010, $874,300,000.
       (c) Replacement Equipment.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for the purchase of replacement passenger rail 
     equipment the following amounts:
       (1) For fiscal year 2006, $250,000,000.
       (2) For fiscal year 2007, $250,000,000.
       (3) For fiscal year 2008, $350,000,000.
       (4) For fiscal year 2009, $350,000,000.
       (5) For fiscal year 2010, $350,000,000.

     SEC. 4689. GRANTS NOT CONSIDERED TO REPLACE FEDERAL OPERATING 
                   OR CAPITAL SUPPORT.

       Grants or assistance provided directly to a State or group 
     of States by the Secretary under this title for rail 
     infrastructure investments shall not be considered to reduce 
     or replace the authorizations or the need for annual Federal 
     appropriations for the National Railroad Passenger 
     Corporation.

     SEC. 4690. ESTABLISHMENT OF GRANT PROCESS.

       (a) Grant Requests.--Amtrak shall submit grant requests to 
     the Secretary of Transportation for funds authorized to be 
     appropriated to the Secretary for the use of Amtrak under 
     sections 686, 687, and 688.
       (b) Procedures for Grant Requests.--The Secretary shall 
     establish substantive and procedural requirements, including 
     schedules, for grant requests under this section not later 
     than 30 days after the date of enactment of this Act and 
     shall transmit copies to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.
       (c) Review and Approval.--
       (1) 30-Day process.--The Secretary shall complete the 
     review of a grant request and approve or disapprove the 
     request within 30 days after the date on which Amtrak submits 
     the grant request.
       (2) Incomplete or deficient requests.--If the Secretary 
     disapproves the request or determines that the request is 
     incomplete or deficient, the Secretary shall immediately 
     notify Amtrak of the reason for disapproval or the incomplete 
     items or deficiencies. Within 15 days after receiving 
     notification from the Secretary under the preceding 
     sentence, Amtrak shall submit a modified request for the 
     Secretary's review.
       (3) Revised requests.--Within 15 days after receiving a 
     modified request from Amtrak, the Secretary shall either 
     approve the modified request, or, if the Secretary finds that 
     the request is still incomplete or deficient, the Secretary 
     shall identify in writing to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure the remaining deficiencies and recommend a 
     process for resolving the outstanding portions of the 
     request.

     SEC. 4691. STATE-SUPPORTED ROUTES.

       The Board of Directors of Amtrak, in consultation with the 
     Secretary of Transportation and the chief executive officer 
     of each State and the District of Columbia, shall develop a 
     formula for funding the operating costs of trains operating 
     on routes not in excess of 750 miles in length that--
       (1) is equitable and fair; and
       (2) ensures, within 5 years after the date of enactment of 
     this Act, equal treatment of all States (and the District of 
     Columbia) and groups of States (including the District of 
     Columbia).

     SEC. 4692. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY 
                   COMMITTEE.

       (a) Re-establishment of Northeast Corridor Safety 
     Committee.--The Secretary of Transportation shall re-
     establish the Northeast Corridor Safety Committee authorized 
     by section 24905(b) of title 49, United States Code.
       (b) Termination Date.--Section 24905(b)(4) is amended by 
     striking ``January 1, 1999,'' and inserting ``January 1, 
     2009,''.

     SEC. 4693. AMTRAK BOARD OF DIRECTORS.

       Section 24302 is amended to read as follows:

     ``Sec. 24302. Board of directors

       ``(a) Composition and Terms.--
       ``(1) The board of directors of Amtrak is composed of the 
     following 9 directors, each of whom must be a citizen of the 
     United States:
       ``(A) The President of Amtrak.
       ``(B) The Secretary of Transportation.
       ``(C) 7 individuals appointed by the President of the 
     United States, by and with the advice and consent of the 
     Senate, with experience and qualifications in or directly 
     related to rail transportation, including representatives of 
     freight and passenger rail transportation, travel, 
     hospitality, cruise line, and passenger air transportation 
     businesses, consumers of passenger rail transportation, and 
     State government.
       ``(2) In selecting individuals described in paragraph (1) 
     for nominations for appointments to the Board, the President 
     shall consult with the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate and should ensure adequate and 
     balanced representation of the major geographic regions of 
     the United States.
       ``(3) Each member shall be appointed for a term of 5 years 
     and until the individual's successor is appointed and 
     qualified. Not more than 4 individuals appointed under 
     paragraph (1)(C) may be members of the same political party.
       ``(4) The board shall elect a chairman and a vice chairman 
     from among its membership. The vice chairman shall serve as 
     chairman in the absence of the chairman.
       ``(5) The Secretary may be represented at board meetings by 
     the Secretary's designee.
       ``(b) Pay and Expenses.--Each director not employed by the 
     United States Government is entitled to $300 a day when 
     performing board duties and powers. Each director is entitled 
     to reimbursement for necessary travel, reasonable secretarial 
     and professional staff support, and subsistence expenses 
     incurred in attending board meetings.
       ``(c) Vacancies.--A vacancy on the board is filled in the 
     same way as the original selection, except that an individual 
     appointed by the President of the United States under 
     subsection (a)(1)(C) of this section to fill a vacancy 
     occurring before the end of the term for which the 
     predecessor of that individual was appointed is appointed for 
     the remainder of that term. A vacancy required to be filled 
     by appointment under subsection (a)(1)(C) must be filled not 
     later than 120 days after the vacancy occurs.
       ``(d) Bylaws.--The board may adopt and amend bylaws 
     governing the operation of Amtrak. The bylaws shall be 
     consistent with this part and the articles of 
     incorporation.''.

     SEC. 4694. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR 
                   AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

       (a) In General.--The Inspector General of the Department of 
     Transportation shall employ an independent financial 
     consultant with experience in railroad accounting--
       (1) to assess Amtrak's financial accounting and reporting 
     system and practices;
       (2) to design and assist Amtrak in implementing a modern 
     financial accounting and reporting system, on the basis of 
     the assessment, that will produce accurate and timely 
     financial information in sufficient detail--
       (A) to enable Amtrak to assign revenues and expenses 
     appropriately to each of its lines of business and to each 
     major activity within each line of business activity, 
     including train operations, equipment maintenance, ticketing, 
     and reservations;
       (B) to aggregate expenses and revenues related to 
     infrastructure and distinguish them from expenses and 
     revenues related to rail operations; and
       (C) to provide ticketing and reservation information on a 
     real-time basis.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $2,500,000 for fiscal year 2005 to carry out subsection (a), 
     such sums to remain available until expended.

     SEC. 4695. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

       (a) Development of 5-year, Financial Plan.--The Amtrak 
     board of directors shall submit an annual budget for Amtrak, 
     and a 5-year financial plan for the fiscal year to which that 
     budget relates and the subsequent 4 years, prepared in 
     accordance with this section, to the Secretary of 
     Transportation and the Inspector General of the Department of 
     Transportation no later than--
       (1) the first day of each fiscal year beginning after the 
     date of enactment of this Act; or
       (2) the date that is 60 days after the date of enactment of 
     an appropriation Act for the fiscal year, if later.
       (b) Contents of 5-year Financial Plan.--The 5-year 
     financial plan for Amtrak shall include, at a minimum--
       (1) all projected revenues and expenditures for Amtrak, 
     including governmental funding sources;
       (2) projected ridership levels for all Amtrak passenger 
     operations;
       (3) revenue and expenditure forecasts for nonpassenger 
     operations;
       (4) capital funding requirements and expenditures necessary 
     to maintain passenger service which will accommodate 
     predicted ridership levels and predicted sources of capital 
     funding;
       (5) operational funding needs, if any, to maintain current 
     and projected levels of passenger service, including state-
     supported routes and predicted funding sources;

[[Page S1179]]

       (6) projected capital and operating requirements, 
     ridership, and revenue for any new passenger service 
     operations or service expansions;
       (7) an assessment of the continuing financial stability of 
     Amtrak, as indicated by factors such as: the ability of the 
     federal government to adequately meet capital and operating 
     requirements, Amtrak's access to long-term and short-term 
     capital markets, Amtrak's ability to efficiently manage its 
     workforce, and Amtrak's ability to effectively provide 
     passenger train service;
       (8) lump sum expenditures of $10,000,000 or more and 
     sources of funding;
       (9) estimates of long-term and short-term debt and 
     associated principle and interest payments (both current and 
     anticipated);
       (10) annual cash flow forecasts; and
       (11) a statement describing methods of estimation and 
     significant assumptions.
       (c) Standards To Promote Financial Stability.--In meeting 
     the requirements of subsection (b) with respect to a 5-year 
     financial plan, Amtrak shall--
       (1) apply sound budgetary practices, including reducing 
     costs and other expenditures, improving productivity, 
     increasing revenues, or combinations of such practices; and
       (2) use the categories specified in the financial 
     accounting and reporting system developed under section 4652 
     when preparing its 5-year financial plan.
       (d) Assessment by DOT Inspector General.--
       (1) In general.--The Inspector General of the Department of 
     Transportation shall assess the 5-year financial plans 
     prepared by Amtrak under this section to determine whether 
     they meet the requirements of subsection (b), and may suggest 
     revisions to any components thereof that do not meet those 
     requirements.
       (2) Assessment to be furnished to the congress.--The 
     Inspector General shall furnish to the House of 
     Representatives Committee on Appropriations, the Senate 
     Committee on Appropriations, the House of Representatives 
     Committee on Transportation and Infrastructure, and the 
     Senate Committee on Commerce, Science, and Transportation--
       (A) an assessment of the annual budget within 90 days after 
     receiving it from Amtrak; and
       (B) an assessment of the remaining 4 years of the 5-year 
     financial plan within 180 days after receiving it from 
     Amtrak.

     SEC. 4696. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR 
                   AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

       (a) Review.--The Secretary of Transportation shall, in 
     consultation with the Federal Railroad Administration, 
     execute a contract to obtain the services of an independent 
     auditor or consultant to research and define Amtrak's past 
     and current methodologies for determining intercity passenger 
     rail routes and services.
       (b) Recommendations.--The independent auditor or consultant 
     shall recommend objective methodologies for determining such 
     routes and services, including the establishment of new 
     routes, the elimination of existing routes, and the 
     contraction or expansion of services or frequencies over such 
     routes.
       (c) Submittal to Congress.--The Secretary shall submit 
     recommendations received under subsection (b) to Amtrak, the 
     House of Representatives Committee on Transportation and 
     Infrastructure, and the Senate Committee on Commerce, 
     Science, and Transportation.
       (d) Authorization of Appropriations.--There are authorized 
     to be made available to the Secretary of Transportation, out 
     of any amounts authorized by this title to be appropriated 
     for the benefit of Amtrak and not otherwise obligated or 
     expended, such sums as may be necessary to carry out this 
     section.

     SEC. 4697. METRICS AND STANDARDS.

       The Administrator of the Federal Railroad Administration 
     shall, in consultation with Amtrak and host railroads, 
     develop new or improve existing metrics and minimum standards 
     for measuring the service quality of intercity train 
     operations, including on-time performance, onboard services, 
     stations, facilities, equipment, and other services.

     SEC. 4698. ON-TIME PERFORMANCE.

       Section 24308 is amended by adding at the end the 
     following:
       ``(f) On-Time Performance and Other Standards.--If the on-
     time performance of any intercity passenger train averages 
     less than 80 percent for any consecutive 6-month period, or 
     the service quality of intercity train operations for which 
     minimum standards are established under section 4697 of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 Act fails to meet those standards, Amtrak 
     may petition the Surface Transportation Board to investigate 
     whether, and to what extent, delays or failure to achieve 
     minimum standards are due to causes that could reasonably be 
     addressed by a rail carrier over the tracks of which the 
     intercity passenger train operates, or by a regional 
     authority providing commuter service, if any. In carrying out 
     such an investigation, the Surface Transportation Board shall 
     obtain information from all parties involved and make 
     recommendations regarding reasonable measures to improve the 
     service, quality, and on-time performance of the train.''.

     SEC. 4699. RAIL COOPERATIVE RESEARCH PROGRAM.

       (a) Requirement for Program.--
       (1) Establishment and content.--Chapter 249 is amended by 
     adding at the end the following:

     ``24910. Rail cooperative research program

       ``(a) In General.--The Secretary shall establish and carry 
     out a rail cooperative research program. The program shall--
       ``(1) address, among other matters, intercity rail 
     passenger services, including existing rail passenger 
     technologies and speeds, incrementally enhanced rail systems 
     and infrastructure, and new high-speed wheel-on-rail systems 
     and rail security;
       ``(2) consider research on the interconnectedness of 
     commuter rail, passenger rail, and other rail networks; and
       ``(3) give consideration to regional concerns regarding 
     rail passenger transportation, including meeting research 
     needs common to designated high speed corridors, long-
     distance rail services, and regional intercity rail 
     corridors, projects, and entities.
       ``(b) Content.--The program to be carried out finder this 
     section shall include research designed--
       ``(1) to identify the unique aspects and attributes of rail 
     passenger service;
       ``(2) to develop more accurate models for evaluating the 
     impact of rail passenger service, including the effects on 
     highway and airport and airway congestion, environmental 
     quality, and energy consumption;
       ``(3) to develop a better understanding of modal choice as 
     it affects rail passenger transportation, including 
     development of better models to predict utilization;
       ``(4) to recommend priorities for technology demonstration 
     and development;
       ``(5) to meet additional priorities as determined by the 
     advisory board established under subsection (c), including 
     any recommendations made by the National Research Council;
       ``(6) to explore improvements in management, financing, and 
     institutional structures;
       ``(7) to address rail capacity constraints that affect 
     passenger rail service through a wide variety of options, 
     ranging from operating improvements to dedicated new 
     infrastructure, taking into account the impact of such 
     options on operations;
       ``(8) to improve maintenance, operations, customer service, 
     or other aspects of intercity rail passenger service;
       ``(9) to recommend objective methodologies for determining 
     intercity passenger rail routes and services, including the 
     establishment of new routes, the elimination of existing 
     routes, and the contraction or expansion of services or 
     frequencies over such routes;
       ``(10) to review the impact of equipment and operational 
     safety standards on the further development of high speed 
     passenger rail operations connected to or integrated with 
     non-high speed freight or passenger rail operations; and
       ``(11) to recommend any legislative or regulatory changes 
     necessary to foster further development and implementation of 
     high speed passenger rail operations while ensuring the 
     safety of such operations that are connected to or integrated 
     with non-high speed freight or passenger rail operations.
       ``(c) Advisory Board.--
       ``(1) Establishment.--In consultation with the heads of 
     appropriate Federal departments and agencies, the Secretary 
     shall establish an advisory board to recommend research, 
     technology, and technology transfer activities related to 
     rail passenger and freight transportation.
       ``(2) Membership.--The advisory board shall include--
       ``(A) representatives of State transportation agencies;
       ``(B) transportation and environmental economists, 
     scientists, and engineers; and
       ``(C) representatives of Amtrak, the Alaska Railroad, 
     transit operating agencies, intercity rail passenger 
     agencies, railway labor organizations, and environmental 
     organizations.
       ``(d) National Academy of Sciences.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     National Academy of Sciences to carry out such activities 
     relating to the research, technology, and technology transfer 
     activities described in subsection (b) as the Secretary deems 
     appropriate.''.
       (2) Clerical Amendment.--The chapter analysis for chapter 
     249 is amended by adding at the end the following:

``24910. Rail cooperative research program''.

       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $5,000,000 for each of fiscal years 2005 through 2010 to 
     carry out the rail cooperative research program under section 
     24910 of title 49, United States Code.
                                 ______
                                 
  SA 2531. Mr. CRAPO (for himself, Mr. Thomas, and Mr. Enzi) submitted 
an amendment intended to be proposed to amendment SA 2285 proposed by 
Mr. Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 51, between lines 20 and 21, insert the following:
       (d) Flexibility in Meeting Set Aside Requirements.--Section 
     104(b) of title 23,

[[Page S1180]]

     United States Code (as amended by section 1401(b)(2)), is 
     amended by adding at the end the following:
       ``(6) Flexibility in meeting set aside requirements.--
       ``(A) In general.--Subject to subparagraph (B), any 
     provision of this title that establishes a requirement on or 
     after the date of enactment of this paragraph that a portion 
     of funds apportioned to a State under paragraph (1), (3), or 
     (4) be reserved or obligated for a particular purpose, on an 
     annual basis, shall be considered satisfied if the State sets 
     aside or obligates, as applicable, over the 6-year period of 
     fiscal years 2004 through 2009, the sum of the individual 
     annual requirements over the 6-year period.
       ``(B) Requirement.--The flexibility provided by 
     subparagraph (A) does not permit a State to have set aside or 
     obligated, as of the end of a fiscal year, with respect to a 
     requirement, an amount less than--
       ``(i) the sum of the individual annual requirements for 
     each of fiscal years 2004 through the fiscal year; less
       ``(ii) the sum obtained by adding the individual 
     requirement for fiscal year 2004 and an amount equal to 50 
     percent of the requirement for fiscal year 2005.''.
                                  ____

  SA 2532. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows;

       At the appropriate place, insert:

      ``SEC.  . THE DELTA REGIONAL AUTHORITY.

        (1) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1814(a), is amended 
     by adding at the end the following:

``178. Delta Region transportation development program

       ``(a) In General.--The Secretary shall carry out a program 
     to--
       ``(1) support and encourage multistate transportation 
     planning and corridor development;
        ``(2) provide for transportation project development;
        ``(3) facilitate transportation decisionmaking; and
        ``(4) support transportation construction.
        ``(b) Eligible Recipients.--A State transportation 
     department or metropolitan planning organization may receive 
     and administer funds provided under the program.
        ``(c) Eligible Activities.--The Secretary shall make 
     allocations under the program for multistate highway and 
     transit planning, development, and construction projects.
        ``(d) Other Provisions Regarding Eligibility.--All 
     activities funded under this program shall be consistent with 
     the continuing, cooperative, and comprehensive planning 
     processes required by section 134 and 135.
        ``(e) Selection Criteria.--The Secretary shall select 
     projects to be carried out under the program based on--
        ``(1) whether the project is located--
        ``(A) in an area that is part of the Delta Regional 
     Authority; and
        ``(B) on the Federal-aid system;
        ``(2) endorsement of the project by the State department 
     of transportation; and
        ``(3) evidence of the ability to complete the project.
        ``(f) Program Priorities.--In administering the program, 
     the Secretary shall--
        ``(1) encourage State and local officials to work together 
     to develop plans for multimodal and multijurisdictional 
     transportation decisionmaking; and
        ``(2) give priority to projects that emphasize multimodal 
     planning, including planning for operational improvements 
     that--
        ``(A) increase the mobility of people and goods;
        ``(B) improve the safety of the transportation system with 
     respect to catastrophic--
        ``(i) natural disasters; or
        ``(ii) disasters caused by human activity; and
        ``(C) contribute to the economic vitality of the area in 
     which the project is being carried out.
        ``(g) Federal Share.--Amounts provided by the Delta 
     Regional Authority to carry out a project under this section 
     shall be applied to the non-Federal share required by section 
     120.
        ``(h) Availability of Funds.--Amounts made available to 
     carry out this section shall remain available until 
     expended.''.
        (b) Conforming Amendment.--The analysis for chapter I of 
     title 23, United States Code (as amended by section 1841(b)), 
     is amended by adding at the end the following:

`'178. Delta Region transportation development program.''.''

        On page 678, after line 5, insert:
        (16) Delta Region Transportation Development Program.--For 
     planning and construction activities authorized under the 
     Delta Regional Authority, $400,000,000 for each of fiscal 
     years 2004 through 2009.
                                 ______
                                 
  SA 2533. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Sec.  . Section 201(b) of the Appalachian Regional 
     Development Act of 1965 is amended by striking ``and'' before 
     (4) and inserting after ``section'' the following:
       ``, and an estimate of the cost to construct highways and 
     access roads for the Appalachian development highway system 
     every 24 months.''
                                 ______
                                 
  SA 2534. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 930, line 6 insert the following:
       ``(3) Cost to complete study.--The Appalachian Regional 
     Commission shall prepare an estimate of the cost to construct 
     highways and access roads for the Appalachian development 
     highway system every 24 months.''
                                 ______
                                 
  SA 2535. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 255, strike line 18 and insert the following:
       (c) Pay-As-You-Drive-And-You-Save (PAYDAYS) Grant 
     Program.--Section 129 of title 23, United States Code (as 
     amended by subsection (b)), is amended by adding at the end 
     the following:
       ``(f) Pay-As-You-Drive-And-You-Save (PAYDAYS) Grant 
     Program.--
       ``(1) Establishment.--The Secretary shall establish a Pay-
     As-You-Drive-And-You-Save (PAYDAYS) grant program to fund 
     pilot and related activities that convert fixed driving costs 
     and general taxes that support transportation to vehicle use 
     charges.
       ``(2) Special requirements.--
       ``(A) In general.--Beginning not later than 60 days after 
     the date of enactment of this subsection and continuing each 
     October 1 (or first subsequent business day) of each of 
     fiscal years 2004 through 2009, a $10,000,000 grant in the 
     form of a single payment shall be made by the Secretary to 1 
     designated university or other institutional partner 
     (referred to in this subsection as the `designated partner').
       ``(B) Grant purpose.--A grant under subparagraph (A) shall 
     be available for soliciting and underwriting applications 
     from governmental, university, and other institutional 
     entities, and public-private partnerships to--
       ``(i) design, test, implement, and evaluate innovative 
     mileage and parking pricing strategies; and
       ``(ii) forge partnerships between private sector entities 
     and consumers to offer innovative mileage and variable 
     parking pricing products.
       ``(C) Subgrants, loans, and revenue and loss guarantees.--
     In consultation with the Secretary, the designated partner 
     shall, using at least 92.5 percent of the funding made 
     available for the grant, provide subgrants, loans, and 
     revenue and loss guarantees to, and enter into contracts 
     with, the governmental, university, and other institutional 
     entities, and public-private partnerships to meet the 
     objectives of this section.
       ``(D) Limitation on use.--Not more than 7.5 percent of the 
     grant funds provided for the program shall be available to be 
     spent directly by the designated partner to--
       ``(i) solicit applications;
       ``(ii) oversee grant activities; and
       ``(iii) conduct research and outreach.
       ``(E) Federal share.--
       ``(i) In general.--The Federal share of the costs of 
     activities carried out with a grant to the designated partner 
     under this section shall be 100 percent.
       ``(ii) Matching funds.--The designated partner shall 
     require a subgrantee to provide matching funds.
       ``(F) Minimum funding guarantees.--Funds provided under 
     this section shall be excluded when calculating minimum 
     funding guarantees under section 105.
       ``(3) Reporting.--
       ``(A) In general.--The designated partner, in cooperation 
     with the Secretary and subgrant recipients, shall--
       ``(i) publish performance goals for the PAYDAYS grant 
     program and for each project; and
       ``(ii) monitor and, at least every 2 years after the 
     enactment of this subsection, submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives a report that assesses the effects of 
     projects on the achievement of those goals.
       ``(B) Performance goals.--Performance goals shall include--
       ``(i) traffic volumes and congestion;
       ``(ii) air quality;
       ``(iii) safety;
       ``(iv) use of alternative transportation modes; and
       ``(v) equity.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this subsection 
     $10,000,000 in contract authority

[[Page S1181]]

     funding for each of fiscal years 2004 through 2009, not 
     subject to obligation limitations.''.
       (d) Conforming Amendments.--
                                 ______
                                 
  SA 2536. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 255, strike line 18 and insert the following:
       (c) Pay-As-You-Drive-And-You-Save (PAYDAYS) Grant 
     Program.--Section 129 of title 23, United States Code (as 
     amended by subsection (b)), is amended by adding at the end 
     the following:
       ``(f) Pay-As-You-Drive-And-You-Save (PAYDAYS) Grant 
     Program.--
       ``(1) Establishment.--The Secretary shall establish a Pay-
     As-You-Drive-And-You-Save (PAYDAYS) grant program to fund 
     pilot and related activities that convert fixed driving costs 
     and general taxes that support transportation to vehicle use 
     charges.
       ``(2) Special requirements.--
       ``(A) In general.--Beginning not later than 60 days after 
     the date of enactment of this subsection and continuing each 
     October 1 (or first subsequent business day) of each of 
     fiscal years 2004 through 2009, a $10,000,000 grant in the 
     form of a single payment shall be made by the Secretary to 1 
     designated university or other institutional partner 
     (referred to in this subsection as the `designated partner').
       ``(B) Grant purpose.--A grant under subparagraph (A) shall 
     be available for soliciting and underwriting applications 
     from governmental, university, and other institutional 
     entities, and public-private partnerships to--
       ``(i) design, test, implement, and evaluate innovative 
     mileage and parking pricing strategies; and
       ``(ii) forge partnerships between private sector entities 
     and consumers to offer innovative mileage and variable 
     parking pricing products.
       ``(C) Subgrants, loans, and revenue and loss guarantees.--
     In consultation with the Secretary, the designated partner 
     shall, using at least 92.5 percent of the funding made 
     available for the grant, provide subgrants, loans, and 
     revenue and loss guarantees to, and enter into contracts 
     with, the governmental, university, and other institutional 
     entities, and public-private partnerships to meet the 
     objectives of this section.
       ``(D) Limitation on use.--Not more than 7.5 percent of the 
     grant funds provided for the program shall be available to be 
     spent directly by the designated partner to--
       ``(i) solicit applications;
       ``(ii) oversee grant activities; and
       ``(iii) conduct research and outreach.
       ``(E) Federal share.--
       ``(i) In general.--The Federal share of the costs of 
     activities carried out with a grant to the designated partner 
     under this section shall be 100 percent.
       ``(ii) Matching funds.--The designated partner shall 
     require a subgrantee to provide matching funds.
       ``(F) Minimum funding guarantees.--Funds provided under 
     this section shall be excluded when calculating minimum 
     funding guarantees under section 105.
       ``(3) Reporting.--
       ``(A) In general.--The designated partner, in cooperation 
     with the Secretary and subgrant recipients, shall--
       ``(i) publish performance goals for the PAYDAYS grant 
     program and for each project; and
       ``(ii) monitor and, at least every 2 years after the 
     enactment of this subsection, submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives a report that assesses the effects of 
     projects on the achievement of those goals.
       ``(B) Performance goals.--Performance goals shall include--
       ``(i) traffic volumes and congestion;
       ``(ii) air quality;
       ``(iii) safety;
       ``(iv) use of alternative transportation modes; and
       ``(v) equity.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this subsection 
     $10,000,000 in contract authority funding for each of fiscal 
     years 2004 through 2009, not subject to obligation 
     limitations.''.
       (d) Conforming Amendments.--
                                 ______
                                 
  SA 2537. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 255, strike line 18 and insert the following:
       (c) Pay-As-You-Drive-And-You-Save (PAYDAYS) Grant 
     Program.--Section 129 of title 23, United States Code (as 
     amended by subsection (b)), is amended by adding at the end 
     the following:
       ``(f) Pay-As-You-Drive-And-You-Save (PAYDAYS) Grant 
     Program.--
       ``(1) Establishment.--The Secretary shall establish a Pay-
     As-You-Drive-And-You-Save (PAYDAYS) grant program to fund 
     pilot and related activities that convert fixed driving costs 
     and general taxes that support transportation to vehicle use 
     charges.
       ``(2) Special requirements.--
       ``(A) In general.--Beginning not later than 60 days after 
     the date of enactment of this subsection and continuing each 
     October 1 (or first subsequent business day) of each of 
     fiscal years 2004 through 2009, a $10,000,000 grant in the 
     form of a single payment shall be made by the Secretary to 1 
     designated university or other institutional partner 
     (referred to in this subsection as the `designated partner').
       ``(B) Grant purpose.--A grant under subparagraph (A) shall 
     be available for soliciting and underwriting applications 
     from governmental, university, and other institutional 
     entities, and public-private partnerships to--
       ``(i) design, test, implement, and evaluate innovative 
     mileage and parking pricing strategies; and
       ``(ii) forge partnerships between private sector entities 
     and consumers to offer innovative mileage and variable 
     parking pricing products.
       ``(C) Subgrants, loans, and revenue and loss guarantees.--
     In consultation with the Secretary, the designated partner 
     shall, using at least 92.5 percent of the funding made 
     available for the grant, provide subgrants, loans, and 
     revenue and loss guarantees to, and enter into contracts 
     with, the governmental, university, and other institutional 
     entities, and public-private partnerships to meet the 
     objectives of this section.
       ``(D) Limitation on use.--Not more than 7.5 percent of the 
     grant funds provided for the program shall be available to be 
     spent directly by the designated partner to--
       ``(i) solicit applications;
       ``(ii) oversee grant activities; and
       ``(iii) conduct research and outreach.
       ``(E) Federal share.--
       ``(i) In general.--The Federal share of the costs of 
     activities carried out with a grant to the designated partner 
     under this section shall be 100 percent.
       ``(ii) Matching funds.--The designated partner shall 
     require a subgrantee to provide matching funds.
       ``(F) Minimum funding guarantees.--Funds provided under 
     this section shall be excluded when calculating minimum 
     funding guarantees under section 105.
       ``(3) Reporting.--
       ``(A) In general.--The designated partner, in cooperation 
     with the Secretary and subgrant recipients, shall--
       ``(i) publish performance goals for the PAYDAYS grant 
     program and for each project; and
       ``(ii) monitor and, at least every 2 years after the 
     enactment of this subsection, submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives a report that assesses the effects of 
     projects on the achievement of those goals.
       ``(B) Performance goals.--Performance goals shall include--
       ``(i) traffic volumes and congestion;
       ``(ii) air quality;
       ``(iii) safety;
       ``(iv) use of alternative transportation modes; and
       ``(v) equity.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this subsection 
     $10,000,000 in contract authority funding for each of fiscal 
     years 2004 through 2009, not subject to obligation 
     limitations.''.
       (d) Conforming Amendments.--
                                 ______
                                 
  SA 2538. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 638, before line 16, insert the following:
       (c) National Technical Assistance Center for Senior 
     Transportation.--Section 5314 is amended by adding at the end 
     the following:
       ``(c) National Technical Assistance Center for Senior 
     Transportation.--
       ``(1) Establishment.--The Secretary, in consultation with 
     the Federal Transit Administration, shall award a grant of 
     $2,500,000 to a national not-for-profit organization for the 
     establishment and maintenance of a national technical 
     assistance center.
       ``(2) Eligibility.--An organization shall be eligible to 
     receive the grant under paragraph (1) if the organization--
       ``(A) focuses significantly on serving the needs of the 
     elderly;
       ``(B) has demonstrated knowledge and expertise in senior 
     transportation policy and planning issues;
       ``(C) has affiliates in a majority of the States;
       ``(D) has the capacity to convene local groups to consult 
     on operation and development of senior transportation 
     programs; and

[[Page S1182]]

       ``(E) has established close working relationships with the 
     Federal Transit Administration and the Administration on 
     Aging.
       ``(3) Use of funds.--The national technical assistance 
     center established under this section shall--
       ``(A) gather best practices from throughout the country and 
     provide such practices to local communities that are 
     implementing senior transportation programs;
       ``(B) work with teams from local communities to identify 
     how they are successfully meeting the transportation needs of 
     senior and any gaps in services in order to create a plan for 
     an integrated senior transportation program;
       ``(C) provide resources on ways to pay for senior 
     transportation services;
       ``(D) create a web site to publicize and circulate 
     information on senior transportation programs;
       ``(E) establish a clearinghouse for print, video, and audio 
     resources on senior mobility; and
       ``(F) administer the demonstration grant program 
     established under paragraph (4).
       ``(4) Grants authorized.--
       ``(A) In general.--The national technical assistance center 
     established under this section, in consultation with the 
     Federal Transit Administration, shall award senior 
     transportation demonstration grants to--
       ``(i) local transportation organizations;
       ``(ii) State agencies;
       ``(iii) units of local government; and
       ``(iv) nonprofit organizations.
       ``(B) Use of funds.--Grant funds received pursuant to 
     subparagraph (A) may be used to create model programs to--
       ``(i) provide direct transportation services to senior 
     citizens; and
       ``(ii) demonstrate effective mechanisms for establishing 
     community-based plans for senior transportation.
       ``(5) Allocations.--From the funds made available for each 
     fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv) 
     of section 5338--
       ``(A) $2,500,000 shall be allocated to carry out the 
     provisions of paragraphs (1) through (3); and
       ``(B) $2,500,000 shall be allocated to carry out the 
     provisions of paragraph (4).''.
                                 ______
                                 
  SA 2539. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 638, before line 16, insert the following:
       (c) National Technical Assistance Center for Senior 
     Transportation.--Section 5314 is amended by adding at the end 
     the following:
       ``(c) National Technical Assistance Center for Senior 
     Transportation.--
       ``(1) Establishment.--The Secretary, in consultation with 
     the Federal Transit Administration, shall award a grant of 
     $2,500,000 to a national not-for-profit organization for the 
     establishment and maintenance of a national technical 
     assistance center.
       ``(2) Eligibility.--An organization shall be eligible to 
     receive the grant under paragraph (1) if the organization--
       ``(A) focuses significantly on serving the needs of the 
     elderly;
       ``(B) has demonstrated knowledge and expertise in senior 
     transportation policy and planning issues;
       ``(C) has affiliates in a majority of the States;
       ``(D) has the capacity to convene local groups to consult 
     on operation and development of senior transportation 
     programs; and
       ``(E) has established close working relationships with the 
     Federal Transit Administration and the Administration on 
     Aging.
       ``(3) Use of funds.--The national technical assistance 
     center established under this section shall--
       ``(A) gather best practices from throughout the country and 
     provide such practices to local communities that are 
     implementing senior transportation programs;
       ``(B) work with teams from local communities to identify 
     how they are successfully meeting the transportation needs of 
     senior and any gaps in services in order to create a plan for 
     an integrated senior transportation program;
       ``(C) provide resources on ways to pay for senior 
     transportation services;
       ``(D) create a web site to publicize and circulate 
     information on senior transportation programs;
       ``(E) establish a clearinghouse for print, video, and audio 
     resources on senior mobility; and
       ``(F) administer the demonstration grant program 
     established under paragraph (4).
       ``(4) Grants authorized.--
       ``(A) In general.--The national technical assistance center 
     established under this section, in consultation with the 
     Federal Transit Administration, shall award senior 
     transportation demonstration grants to--
       ``(i) local transportation organizations;
       ``(ii) State agencies;
       ``(iii) units of local government; and
       ``(iv) nonprofit organizations.
       ``(B) Use of funds.--Grant funds received pursuant to 
     subparagraph (A) may be used to create model programs to--
       ``(i) provide direct transportation services to senior 
     citizens; and
       ``(ii) demonstrate effective mechanisms for establishing 
     community-based plans for senior transportation.
       ``(5) Allocations.--From the funds made available for each 
     fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv) 
     of section 5338--
       ``(A) $2,500,000 shall be allocated to carry out the 
     provisions of paragraphs (1) through (3); and
       ``(B) $2,500,000 shall be allocated to carry out the 
     provisions of paragraph (4).''.
                                 ______
                                 
  SA 2540. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 638, before line 16, insert the following:
       (c) National Technical Assistance Center for Senior 
     Transportation.--Section 5314 is amended by adding at the end 
     the following:
       ``(c) National Technical Assistance Center for Senior 
     Transportation.--
       ``(1) Establishment.--The Secretary, in consultation with 
     the Federal Transit Administration, shall award a grant of 
     $2,500,000 to a national not-for-profit organization for the 
     establishment and maintenance of a national technical 
     assistance center.
       ``(2) Eligibility.--An organization shall be eligible to 
     receive the grant under paragraph (1) if the organization--
       ``(A) focuses significantly on serving the needs of the 
     elderly;
       ``(B) has demonstrated knowledge and expertise in senior 
     transportation policy and planning issues;
       ``(C) has affiliates in a majority of the States;
       ``(D) has the capacity to convene local groups to consult 
     on operation and development of senior transportation 
     programs; and
       ``(E) has established close working relationships with the 
     Federal Transit Administration and the Administration on 
     Aging.
       ``(3) Use of funds.--The national technical assistance 
     center established under this section shall--
       ``(A) gather best practices from throughout the country and 
     provide such practices to local communities that are 
     implementing senior transportation programs;
       ``(B) work with teams from local communities to identify 
     how they are successfully meeting the transportation needs of 
     senior and any gaps in services in order to create a plan for 
     an integrated senior transportation program;
       ``(C) provide resources on ways to pay for senior 
     transportation services;
       ``(D) create a web site to publicize and circulate 
     information on senior transportation programs;
       ``(E) establish a clearinghouse for print, video, and audio 
     resources on senior mobility; and
       ``(F) administer the demonstration grant program 
     established under paragraph (4).
       ``(4) Grants authorized.--
       ``(A) In general.--The national technical assistance center 
     established under this section, in consultation with the 
     Federal Transit Administration, shall award senior 
     transportation demonstration grants to--
       ``(i) local transportation organizations;
       ``(ii) State agencies;
       ``(iii) units of local government; and
       ``(iv) nonprofit organizations.
       ``(B) Use of funds.--Grant funds received pursuant to 
     subparagraph (A) may be used to create model programs to--
       ``(i) provide direct transportation services to senior 
     citizens; and
       ``(ii) demonstrate effective mechanisms for establishing 
     community-based plans for senior transportation.
       ``(5) Allocations.--From the funds made available for each 
     fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv) 
     of section 5338--
       ``(A) $2,500,000 shall be allocated to carry out the 
     provisions of paragraphs (1) through (3); and
       ``(B) $2,500,000 shall be allocated to carry out the 
     provisions of paragraph (4).''.
                                 ______
                                 
  SA 2541. Mr. SMITH submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe  to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 619, strike line 1 and all that follows through 
     page 621, line 8, and insert the following:
       ``(1) Authorization.--The Secretary may award grants to a 
     State for public transportation capital projects, and 
     operating costs associated with public transportation capital 
     projects, that are planned, designed, and carried out to meet 
     the needs of elderly individuals and individuals with 
     disabilities, with priority given to the needs of these 
     individuals to access necessary health care.
       ``(2) Acquisition of public transportation services.--A 
     capital public transportation

[[Page S1183]]

     project under this section may include acquiring public 
     transportation services as an eligible capital expense.
       ``(3) Administrative costs.--A State may use not more than 
     15 percent of the amounts received under this section to 
     administer, plan, and provide technical assistance for a 
     project funded under this section.
       ``(b) Allotments Among States.--
       ``(1) In general.--From amounts made available or 
     appropriated in each fiscal year under subsections 
     (a)(1)(C)(iv) and (b)(2)(D) of section 5338 for grants under 
     this section, the Secretary shall allot amounts to each State 
     under a formula based on the number of elderly individuals 
     and individuals with disabilities in each State.
       ``(2) Transfer of funds.--Any funds allotted to a State 
     under paragraph (1) may be transferred by the State to the 
     apportionments made under sections 5311(c) and 5336 if such 
     funds are only used for eligible projects selected under this 
     section.
       ``(3) Reallocation of funds.--A State receiving a grant 
     under this section may reallocate such grant funds to--
       ``(A) a private nonprofit organization;
       ``(B) a public transportation agency or authority; or
       ``(C) a governmental authority that--
       ``(i) has been approved by the State to coordinate services 
     for elderly individuals and individuals with disabilities;
       ``(ii) certifies that nonprofit organizations are not 
     readily available in the area that can provide the services 
     described under this subsection; or
       ``(iii) will provide services to persons with disabilities 
     that exceed those services required by the Americans with 
     Disabilities Act.
       ``(c) Federal Share.--
       ``(1) Maximum.--
       ``(A) Capital projects.--A grant for a capital project 
     under this section may not exceed 80 percent of the net 
     capital costs of the project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(d) of 
     title 23 shall receive an increased Federal share in 
     accordance with the formula under that section.
       ``(C) Operating costs.--Grant funds for operating costs 
     under this section may not exceed 50 percent of the net 
     operating costs of the project, as determined by the 
     Secretary.''
                                 ______
                                 
  SA 2542. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Insert the following before equipment in Section 
     148(a)(2)(B)(xiv): ``integrated, interoperable emergency 
     communications''.
                                 ______
                                 
  SA 2543. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Insert the following after elements in Section 
     148(a)(5)(C): ``, including integrated, interoperable 
     emergency communications,''.
                                 ______
                                 
  SA 2544. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Insert the following before communications in Section 
     501(2): ``integrated, interoperable emergency''.
                                 ______
                                 
  SA 2545. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Insert the following before communications in Section 
     501(2)(C): ``integrated, interoperable emergency''.
                                 ______
                                 
  SA 2546. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

       Strike enhanced and insert the following in Section 
     502(h)(2)(iii): ``integrated, interoperable emergency''.
                                 ______
                                 
  SA 2547. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Add new paragraph (7) to Section 149(b): ``If the project 
     or program involves the purchase of integrated, interoperable 
     emergency communications equipment.''
                                 ______
                                 
  SA 2548. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Insert the following before reliability in Section 
     503(a)(3)(B): ``, mobile communications,''.
                                 ______
                                 
  SA 2549. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 1027, strike lines 3 through 13, and insert the 
     following:
       (g) Prohibition on Use of Highway Account for Rail Projects 
     Under New Programs.--Section 9503(c) (relating to transfers 
     from Highway Trust Fund for certain repayments and credits) 
     is amended by adding at the end the following new paragraph:
       ``(6) Prohibition on use of highway account for certain 
     rail projects.--With respect to rail projects under programs 
     beginning after the date of the enactment of this paragraph, 
     no amount shall be available from the Highway Account (as 
     defined in subsection (e)(5)(B)).''.
                                 ______
                                 
  SA 2550. Mr. THOMAS submitted an amendment intended to be proposed to 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:
       (a) Amendment to 23 U.S.C. 306.--Section 23 U.S.C. 306 is 
     amended as follows:

     SEC. 306.--MAPPING.

       (a) In General.----
       In carrying out the provisions of this title, the Secretary 
     may, wherever practicable, authorize the use of 
     photogrammetric methods in mapping, and the utilization of 
     commercial enterprise for such services.
       (b) Regulations.--
       The Secretary shall issue regulations to require States to 
     utilize, to the maximum extent practicable, private sector 
     sources for surveying and mapping services for projects under 
     this title. In carrying out this subsection, the Secretary 
     shall recommend appropraite roles for States and private 
     mapping and surveying activities, including--
       (1) State participation in--
       (i) Preparation of standards and specifications;
       (ii) research in surveying and mapping instrumentation and 
     procedures and technology transfer to the private sector; and
       (iii) providing technical guidance, coordination, and 
     administration of State surveying and mapping activities; and
       (2) private sector participations in--
       (i) performance of surveying and mapping activities, to 
     include but not be limited to such activities as measuring, 
     locating and preparing maps, charts, surveys, aerial 
     photographs, satellite images, or other graphical or digital 
     presentations depicting natural or manmade physical features, 
     phenomena, and legal boundaries of the Earth.
       (c) The Secretary shall implement a program to assure that 
     States implement this section in such a manner as to assure 
     that government agencies do not complete with its citizens 
     and that such agencies not start or carry on any activity to 
     provide a commercial surveying and mapping product or service 
     if the product or service can be procured more economically 
     from the commercial sources to supply the surveying and 
     mapping products and services the government needs.
                                 ______
                                 
  SA 2551. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of title IV, add the following:

               Subtitle G--Immigration Related Provisions

     SEC. 4701. PROHIBITION OF ISSUANCE OF DRIVER'S LICENSES TO 
                   ILLEGAL ALIENS.

       (a) Withholding of Funds for Noncompliance.--The Secretary 
     of Transportation shall withhold 10 per cent of the amount 
     required to be apportioned to any State under this Act on the 
     first day of each fiscal year after the second fiscal year 
     beginning after September 30, 2004, if such State permits by 
     statute, regulation, or executive order the issuance of a 
     State Driver's license or identification card to aliens who 
     do not present valid documentation of lawful presence in the 
     United States as determined by the Immigration and 
     Nationality Act (8 U.S.C. 1101).

[[Page S1184]]

       (b) Effect of Withholding of Funds.--Any funds recovered 
     due to a reduction in State funding in accordance with 
     subsection (a) shall be redistributed amongst the States that 
     are in compliance with this section in accordance with the 
     formulas set forth in this Act, calculated without taking 
     into account the States that have violated this section.
       (c) The Bureau of Immigration and Customs Enforcement of 
     the Department of Homeland Security shall issue a list of 
     documents or combinations of documents establishing legal 
     presence in the United States by September 30, 2004. The 
     Secretary shall utilize such list for the purpose of 
     determinations of compliance with subsection (a).
                                 ______
                                 
  SA 2552. Mr. WYDEN (for himself and Mr. Talent) submitted an 
amendment intended to be proposed to amendment SA 2341 submitted by Mr. 
Talent (for himself and Mr. Wyden) and intended to be proposed to the 
bill S. 1072, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

       Strike all after the first word and insert the following:

          4602. ESTABLISHMENT OF BUILD AMERICA CORPORATION.

       There is established a nonprofit corporation, to be known 
     as the ``Build America Corporation''. The Build America 
     Corporation is not an agency or establishment of the United 
     States Government. The purpose of the Corporation is to 
     support qualified projects described in section 4603(c)(2) 
     through the issuance of Build America bonds. The Corporation 
     shall be subject, to the extent consistent with this section, 
     to the laws of the State of Delaware applicable to 
     corporations not for profit.

     SEC. 4603. FEDERAL BONDS FOR TRANSPORTATION INFRASTRUCTURE.

       (a) Use of Bond Proceeds.--The proceeds from the sale of--
       (1) any bonds authorized, issued, or guaranteed by the 
     Federal Government that are available to fund passenger rail 
     projects pursuant to any Federal law (enacted before, on, or 
     after the date of the enactment of this Act), and
       (2) any Build America bonds issued by the Build America 
     Corporation as authorized by section 4602,

     may be used to fund a qualified project if the Secretary of 
     Transportation determines that the qualified project is a 
     cost-effective alternative for efficiently maximizing 
     mobility of individuals and goods.
       (b) Compliance of Beneficiaries With Certain Standards.--A 
     recipient of proceeds of a grant, loan, Federal tax-credit 
     bonds, or any other form of financial assistance provided 
     under this title shall comply with the standards described in 
     section 24312 of title 49, United States Code, as in effect 
     on June 25, 2003, with respect to any qualified project 
     described in subsection (c)(1) in the same manner that the 
     National Passenger Railroad Corporation is required to comply 
     with such standards for construction work financed under an 
     agreement entered into under section 24308(a) of such title.
       (c) Qualified Project Defined.--In this section--
       (1) In general.--Except as provided in paragraph (2), the 
     term ``qualified project'' means any transportation 
     infrastructure project of any governmental unit or other 
     person that is proposed by a State, including a highway 
     project, a transit system project, a railroad project, an 
     airport project, a port project, and an inland waterways 
     project.
       (2) Build america corporation projects.--
       (A) In general.--With respect to any Build America bonds 
     issued by the Build America Corporation as authorized by 
     section 4602, the term ``qualified project'' means any--
       (i) qualified highway project,
       (ii) qualified public transportation project, and
       (iii) congestion relief project,

     proposed by 1 or more States and approved by the Build 
     America Corporation, which meets the requirements under 
     clauses (i), (ii), and (iii) of subparagraph (D).
       (B) Qualified highway project.--The term ``qualified 
     highway project'' means a project for highway facilities or 
     other facilities which are eligible for assistance under 
     title 23, United States Code.
       (C) Qualified public transportation project.--The term 
     ``qualified public transportation project'' means a project 
     for public transportation facilities or other facilities 
     which are eligible for assistance under chapter 53 of title 
     49, United States Code.
       (D) Congestion relief project.--The term ``congestion 
     relief project'' means an intermodal freight transfer 
     facility, freight rail facility, freight movement corridor, 
     intercity passenger rail or facility, intercity bus vehicle 
     or facility, border crossing facility, or other public or 
     private facility approved as a congestion relief project by 
     the Secretary of Transportation. In making such approvals, 
     the Secretary of Transportation shall--
       (i) consider the economic, environmental, mobility, and 
     national security improvements to be realized through the 
     project, and
       (ii) give preference to projects with national or regional 
     significance, including any projects sponsored by a coalition 
     of States or a combination of States and private sector 
     entities, in terms of generating economic benefits, 
     supporting international commerce, or otherwise enhancing the 
     national transportation system.
       (D) Additional requirements for qualified projects.--For 
     purposes of subparagraph (A)--
       (i) Costs of qualified projects.--The requirement of this 
     clause is met if the costs of the qualified project funded by 
     Build America bonds only relate to capital investments in 
     depreciable assets and do not include any costs relating to 
     operations, maintenance, or rolling stock.
       (ii) Applicability of federal law.--The requirement of this 
     clause is met if the requirements of any Federal law, 
     including titles 23, 40, and 49 of the United States Code, 
     which would otherwise apply to projects to which the United 
     States is a party or to funds made available under such law 
     and projects assisted with those funds are applied to--

       (I) funds made available under Build America bonds for 
     similar qualified projects, and
       (II) similar qualified projects assisted by the Build 
     America Corporation through the use of such funds.

       (iii) Utilization of updated construction technology for 
     qualified projects.--The requirement of this clause is met if 
     the appropriate State agency relating to the qualified 
     project has updated its accepted construction technologies to 
     match a list prescribed by the Secretary of Transportation 
     and in effect on the date of the approval of the project as a 
     qualified project.

                  Part 2--Railroad Track Modernization

     SEC. 4631. SHORT TITLE.

       This part may be cited as the ``Railroad Track 
     Modernization Act of 2004''.

     SEC. 4632. CAPITAL GRANTS FOR RAILROAD TRACK.

       (a) Authority.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroad track (including 
     roadbed, bridges, and related track structures) of class II 
     and class III railroads. Such grants shall be for 
     rehabilitating, preserving, or improving track used primarily 
     for freight transportation to a standard ensuring that the 
     track can be operated safely and efficiently, including 
     grants for rehabilitating, preserving, or improving track to 
     handle 286,000 pound rail cars. Grants may be provided under 
     this chapter--
       ``(A) directly to the class II or class III railroad; or
       ``(B) with the concurrence of the class II or class III 
     railroad, to a State or local government.
       ``(2) State cooperation.--Class II and class III railroad 
     applicants for a grant under this chapter are encouraged to 
     utilize the expertise and assistance of State transportation 
     agencies in applying for and administering such grants. State 
     transportation agencies are encouraged to provide such 
     expertise and assistance to such railroads.
       ``(3) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant to a railroad on 
     reasonable assurances by the railroad that the facilities to 
     be rehabilitated and improved will be economically and 
     efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services by the 
     railroad to which the grant is to be awarded;
       ``(iii) ensure that consideration is given to projects that 
     are part of a State-sponsored rail plan; and
       ``(iv) ensure that all such grants are awarded on a 
     competitive basis.
       ``(b) Maximum Federal Share.--The maximum Federal share for 
     carrying out a project under this section shall be 80 percent 
     of the project cost. The non-Federal share may be provided by 
     any non-Federal source in cash, equipment, or supplies. Other 
     in-kind contributions may be approved by the Secretary on a 
     case by case basis consistent with this chapter.
       ``(c) Project Eligibility.--For a project to be eligible 
     for assistance under this section the track must have been 
     operated or owned by a class II or class III railroad as of 
     the date of the enactment of the Railroad Track Modernization 
     Act of 2004.
       ``(d) Use of Funds.--Grants provided under this section 
     shall be used to implement track capital projects as soon as 
     possible. In no event shall grant funds be contractually 
     obligated for a project later than the end of the third 
     Federal fiscal year following the year in which the grant was 
     awarded. Any funds not so obligated by the end of such fiscal 
     year shall be returned to the Secretary for reallocation.
       ``(e) Additional Purpose.--In addition to making grants for 
     projects as provided in subsection (a), the Secretary may 
     also make

[[Page S1185]]

     grants to supplement direct loans or loan guarantees made 
     under title V of the Railroad Revitalization and Regulatory 
     Reform Act of 1976 (45 U.S.C. 822(d)), for projects described 
     in the last sentence of section 502(d) of such title. Grants 
     made under this subsection may be used, in whole or in part, 
     for paying credit risk premiums, lowering rates of interest, 
     or providing for a holiday on principal payments.
       ``(f) Employee Protection.--The Secretary shall require as 
     a condition of any grant made under this section that the 
     recipient railroad provide a fair arrangement at least as 
     protective of the interests of employees who are affected by 
     the project to be funded with the grant as the terms imposed 
     under section 11326(a), as in effect on the date of the 
     enactment of the Railroad Track Modernization Act of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

``223. Capital grants for railroad track.......................22301''.

     SEC. 4633. REGULATIONS.

       (a) Regulations.--The Secretary of Transporation shall 
     prescribe under subsection (a)(3) of section 22301 of title 
     49, United States Code (as added by section 4601), interim 
     and final regulations for the administration of the grant 
     program under such section as follows:
       (1) Interim regulations.--The Secretary shall prescribe the 
     interim regulations to implement the program not later than 
     December 31, 2003.
       (2) Final regulations.--The Secretary shall prescribe the 
     final regulations not later than October 1, 2004.
       (b) Inapplicability of Rulemaking Procedure to Interim 
     Regulations.--Subchapter II of chapter 5 of title 5, United 
     States Code, shall not apply to the issuance of an interim 
     regulation or to any amendment of such an interim regulation.
       (c) Criteria.--The requirement for the establishment of 
     criteria under subparagraph (B) of section 22301(a)(3) of 
     title 49, United States Code, applies to the interim 
     regulations as well as to the final regulations.

     SEC. 4634. STUDY OF GRANT-FUNDED PROJECTS.

       (a) Requirement for Study.--The Secretary of Transportation 
     shall conduct a study of the projects carried out with grant 
     assistance under section 22301 of title 49, United States 
     Code (as added by section 4601), to determine the public 
     interest benefits associated with the light density railroad 
     networks in the States and their contribution to a multimodal 
     transportation system.
       (b) Report.--Not later than March 31, 2004, the Secretary 
     shall submit to Congress a report on the results of the study 
     under subsection (a). The report shall include any 
     recommendations that the Secretary considers appropriate 
     regarding the eligibility of light density rail networks for 
     Federal infrastructure financing.

     SEC. 4635. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Transportation $350,000,000 for each of fiscal years 2004, 
     2005, and 2006 for carrying out section 22301 of title 49, 
     United States Code (as added by section 4601).

          Part 3--Other Rail Transportation-related Provisions

     SEC. 4661. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS.

       (a) Establishment of Program.--
       (1) Program requirements.--Chapter 201 of title 49, United 
     States Code, is amended by adding at the end of subchapter II 
     the following:

     ``Sec. 20154. Capital grants for rail line relocation 
       projects

       ``(a) Establishment of Program.--The Secretary of 
     Transportation shall carry out a grant program to provide 
     financial assistance for local rail line relocation projects.
       ``(b) Eligibility.--A State is eligible for a grant under 
     this section for any project for the improvement of the route 
     or structure of a rail line passing through a municipality of 
     the State that--
       ``(1) is carried out for the purpose of mitigating the 
     adverse effects of rail traffic on safety, motor vehicle 
     traffic flow, or economic development in the municipality;
       ``(2) involves a lateral or vertical relocation of any 
     portion of the rail line within the municipality to avoid a 
     closing of a grade crossing or the construction of a road 
     underpass or overpass; and
       ``(3) meets the costs-benefits requirement set forth in 
     subsection (c).
       ``(c) Costs-Benefits Requirement.--A grant may be awarded 
     under this section for a project for the relocation of a rail 
     line only if the benefits of the project for the period equal 
     to the estimated economic life of the relocated rail line 
     exceed the costs of the project for that period, as 
     determined by the Secretary considering the following 
     factors:
       ``(1) The effects of the rail line and the rail traffic on 
     motor vehicle and pedestrian traffic, safety, and area 
     commerce if the rail line were not so relocated.
       ``(2) The effects of the rail line, relocated as proposed, 
     on motor vehicle and pedestrian traffic, safety, and area 
     commerce.
       ``(3) The effects of the rail line, relocated as proposed, 
     on the freight and passenger rail operations on the rail 
     line.
       ``(d) Considerations for Approval of Grant Applications.--
     In addition to considering the relationship of benefits to 
     costs in determining whether to award a grant to an eligible 
     State under this section, the Secretary shall consider the 
     following factors:
       ``(1) The capability of the State to fund the rail line 
     relocation project without Federal grant funding.
       ``(2) The requirement and limitation relating to allocation 
     of grant funds provided in subsection (e).
       ``(3) Equitable treatment of the various regions of the 
     United States.
       ``(e) Allocation Requirements.--
       ``(1) Grants not greater than $20,000,000.--At least 50 
     percent of all grant funds awarded under this section out of 
     funds appropriated for a fiscal year shall be provided as 
     grant awards of not more than $20,000,000 each.
       ``(2) Limitation per project.--Not more than 25 percent of 
     the total amount available for carrying out this section for 
     a fiscal year may be provided for any 1 project in that 
     fiscal year.
       ``(f) Federal Share.--The total amount of a grant awarded 
     under this section for a rail line relocation project shall 
     be 90 percent of the shared costs of the project, as 
     determined under subsection (g)(4).
       ``(g) State Share.--
       ``(1) Percentage.--A State shall pay 10 percent of the 
     shared costs of a project that is funded in part by a grant 
     awarded under this section.
       ``(2) Forms of contributions.--The share required by 
     paragraph (1) may be paid in cash or in kind.
       ``(3) In-kind contributions.--The in-kind contributions 
     that are permitted to be counted under paragraph (2) for a 
     project for a State are as follows:
       ``(A) A contribution of real property or tangible personal 
     property (whether provided by the State or a person for the 
     State).
       ``(B) A contribution of the services of employees of the 
     State, calculated on the basis of costs incurred by the State 
     for the pay and benefits of the employees, but excluding 
     overhead and general administrative costs.
       ``(C) A payment of any costs that were incurred for the 
     project before the filing of an application for a grant for 
     the project under this section, and any in-kind contributions 
     that were made for the project before the filing of the 
     application, if and to the extent that the costs were 
     incurred or in-kind contributions were made, as the case may 
     be, to comply with a provision of a statute required to be 
     satisfied in order to carry out the project.
       ``(4) Costs not shared.--
       ``(A) In general.--For the purposes of subsection (f) and 
     this subsection, the shared costs of a project in a 
     municipality do not include any cost that is defrayed with 
     any funds or in-kind contribution that a source other than 
     the municipality makes available for the use of the 
     municipality without imposing at least 1 of the following 
     conditions:
       ``(i) The condition that the municipality use the funds or 
     contribution only for the project.
       ``(ii) The condition that the availability of the funds or 
     contribution to the municipality is contingent on the 
     execution of the project.
       ``(B) Determinations of the secretary.--The Secretary shall 
     determine the amount of the costs, if any, that are not 
     shared costs under this paragraph and the total amount of the 
     shared costs. A determination of the Secretary shall be 
     final.
       ``(h) Multistate Agreements To Combine Amounts.--Two or 
     more States (not including political subdivisions of States) 
     may, pursuant to an agreement entered into by the States, 
     combine any part of the amounts provided through grants for a 
     project under this section if--
       ``(1) the project will benefit each of the States entering 
     into the agreement; and
       ``(2) the agreement is not a violation of a law of any such 
     State.
       ``(i) Regulations.--The Secretary shall prescribe 
     regulations for carrying out this section.
       ``(j) State Defined.--In this section, the term `State' 
     includes, except as otherwise specifically provided, a 
     political subdivision of a State.
       ``(k) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary for use in 
     carrying out this section $350,000,000 for each of the fiscal 
     years 2004 through 2008.''.
       (2) Clerical amendment.--The chapter analysis for such 
     chapter is amended by adding at the end the following:

``20154. Capital grants for rail line relocation projects.''.

       (b) Regulations.--

[[Page S1186]]

       (1) Interim regulations.--Not later than October 1, 2003, 
     the Secretary of Transportation shall issue temporary 
     regulations to implement the grant program under section 
     20154 of title 49, United States Code, as added by subsection 
     (a). Subchapter II of chapter 5 of title 5, United States 
     Code, shall not apply to the issuance of a temporary 
     regulation under this subsection or of any amendment of such 
     a temporary regulation.
       (2) Final regulations.--Not later than March 31, 2004, the 
     Secretary shall issue final regulations implementing the 
     program.
                                 ______
                                 
  SA 2553. Mr. WYDEN (for himself and Mr. Talent) submitted an 
amendment intended to be proposed to amendment SA 2340 submitted by Mr. 
Talent (for himself, Mr. Wyden, Mr. Corzine, and Mr. Coleman) and 
intended to be proposed to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike all after the first word and insert the following:

                    Subtitle H--Build America Bonds

     SEC. 5671. SHORT TITLE; ETC.

       (a) Short Title.--This subtitle may be cited as the ``Build 
     America Bonds Act of 2004''.
       (b) References to Internal Revenue Code of 1986.--Except as 
     otherwise expressly provided, whenever in this subtitle an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Internal Revenue Code of 1986.

     SEC. 5672. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Our Nation's highways, public transportation systems, 
     and rail systems drive our economy, enabling all industries 
     to achieve growth and productivity that makes America strong 
     and prosperous.
       (2) The establishment, maintenance, and improvement of the 
     national transportation network is a national priority, for 
     economic, environmental, energy, security, and other reasons.
       (3) The ability to move people and goods is critical to 
     maintaining State, metropolitan, rural, and local economies.
       (4) The construction of infrastructure requires the skills 
     of numerous occupations, including those in the contracting, 
     engineering, planning and design, materials supply, 
     manufacturing, distribution, and safety industries.
       (5) Investing in transportation infrastructure creates 
     long-term capital assets for the Nation that will help the 
     United States address its enormous infrastructure needs and 
     improve its economic productivity.
       (6) Investment in transportation infrastructure creates 
     jobs and spurs economic activity to put people back to work 
     and stimulate the economy.
       (7) Every billion dollars in transportation investment has 
     the potential to create up to 47,500 jobs.
       (8) Every dollar invested in the Nation's transportation 
     infrastructure yields at least $5.70 in economic benefits 
     because of reduced delays, improved safety, and reduced 
     vehicle operating costs.
       (9) The proposed increases to the Transportation Equity Act 
     for the 21st Century (TEA-21) will not be sufficient to 
     compensate for the Nation's transportation infrastructure 
     deficit.
       (b) Purpose.--The purpose of this subtitle is to provide 
     financing for long-term infrastructure capital investments 
     that are not currently being met by existing transportation 
     and infrastructure investment programs, including mega-
     projects, projects of national significance and high priority 
     projects, multi-State transportation corridors, intermodal 
     transportation facilities, replacement and reconstruction of 
     deficient and obsolete bridges, interstate highways, public 
     transportation systems, and rail systems.

     SEC. 5673. CREDIT TO HOLDERS OF BUILD AMERICA BONDS.

       (a) In General.--Part IV of subchapter A of chapter 1 
     (relating to credits against tax) is amended by adding at the 
     end the following new subpart:

  ``Subpart H--Nonrefundable Credit for Holders of Build America Bonds

``Sec. 54. Credit to holders of Build America bonds.

     ``SEC. 54. CREDIT TO HOLDERS OF BUILD AMERICA BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a Build America bond on a credit allowance date of such 
     bond which occurs during the taxable year, there shall be 
     allowed as a credit against the tax imposed by this chapter 
     for such taxable year an amount equal to the sum of the 
     credits determined under subsection (b) with respect to 
     credit allowance dates during such year on which the taxpayer 
     holds such bond.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a Build America bond is 25 percent of the annual 
     credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any Build America bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate with respect to an issue is 
     the rate equal to an average market yield (as of the day 
     before the date of sale of the issue) on outstanding long-
     term corporate debt obligations (determined in such manner as 
     the Secretary prescribes).
       ``(4) Credit allowance date.--For purposes of this section, 
     the term `credit allowance date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.

     Such term includes the last day on which the bond is 
     outstanding.
       ``(5) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year.
       ``(d) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(e) Build America Bond.--For purposes of this part, the 
     term `Build America bond' means any bond issued as part of an 
     issue if--
       ``(1) the net spendable proceeds from the sale of such 
     issue are to be used--
       ``(A) for expenditures incurred after the date of the 
     enactment of this section for any qualified project, or
       ``(B) for deposit in the Build America Trust Account for 
     repayment of Build America bonds at maturity,
       ``(2) the bond is issued by the Transportation Finance 
     Corporation, is in registered form, and meets the Build 
     America bond limitation requirements under subsection (g),
       ``(3) the Transportation Finance Corporation certifies that 
     it meets the State contribution requirement of subsection (k) 
     with respect to such project, as in effect on the date of 
     issuance,
       ``(4) the Transportation Finance Corporation certifies that 
     the State in which an approved qualified project is located 
     meets the requirement described in subsection (l),
       ``(5) except for bonds issued in accordance with subsection 
     (g)(6), the term of each bond which is part of such issue 
     does not exceed 30 years,
       ``(6) the payment of principal with respect to such bond is 
     the obligation of the Transportation Finance Corporation, and
       ``(7) with respect to bonds described in paragraph (1)(A), 
     the issue meets the requirements of subsection (h) (relating 
     to arbitrage).
       ``(f) Qualified Project.--For purposes of this section--
       ``(1) In general.--The term `qualified project' means any--
       ``(A) qualified highway project,
       ``(B) qualified public transportation project, and
       ``(C) congestion relief project,

     proposed by 1 or more States and approved by the 
     Transportation Finance Corporation.
       ``(2) Qualified highway project.--The term `qualified 
     highway project' means a project for highway facilities or 
     other facilities which are eligible for assistance under 
     title 23, United States Code.
       ``(3) Qualified public transportation project.--The term 
     `qualified public transportation project' means a project for 
     public transportation facilities or other facilities which 
     are eligible for assistance under chapter 53 of title 49, 
     United States Code.
       ``(4) Congestion relief project.--The term `congestion 
     relief project' means an intermodal freight transfer 
     facility, freight rail facility, freight movement corridor, 
     intercity passenger rail or facility, intercity bus vehicle 
     or facility, border crossing facility, or other public or 
     private facility approved as a congestion relief project by 
     the Secretary of Transportation. In making such approvals, 
     the Secretary of Transportation shall--
       ``(A) consider the economic, environmental, mobility, and 
     national security improvements to be realized through the 
     project, and
       ``(B) give preference to projects with national or regional 
     significance, including any

[[Page S1187]]

     projects sponsored by a coalition of States or a combination 
     of States and private sector entities, in terms of generating 
     economic benefits, supporting international commerce, or 
     otherwise enhancing the national transportation system.
       ``(g) Limitation on Amount of Bonds Designated; Allocation 
     of Bond Proceeds.--
       ``(1) National limitation.--There is a Build America bond 
     limitation for each calendar year. Such limitation is--
       ``(A) with respect to bonds described in subsection 
     (e)(1)(A),
       ``(i) $11,000,000,000 for 2004,
       ``(ii) $16,000,000,000 for 2005,
       ``(iii) $16,000,000,000 for 2006,
       ``(iv) $6,000,000,000 for 2007,
       ``(v) $3,500,000,000 for 2008,
       ``(vi) $3,500,000,000 for 2009, and
       ``(vii) except as provided in paragraph (5), zero 
     thereafter, plus
       ``(B) with respect to bonds described in subsection 
     (e)(1)(B), such amount each calendar year as determined 
     necessary by the Transportation Finance Corporation to 
     provide funds in the Build America Trust Account for the 
     repayment of Build America bonds at maturity.
       ``(2) Congestion relief projects.--From Build America bonds 
     issued under the annual limitation in paragraph (1)(A), 
     $1,000,000,000 of net spendable proceeds shall be reserved 
     for each of the calendar years 2004, 2005, 2006, 2007, 2008, 
     and 2009 for allocation to congestion relief projects.
       ``(3) Allocation of bonds for highway and public 
     transportation purposes.--Except with respect to qualified 
     projects described in subsection (j)(3), and subject to 
     paragraphs (2) and (4)--
       ``(A) Qualified highway projects.--From Build America bonds 
     issued under the annual limitation in paragraph (1)(A), the 
     Transportation Finance Corporation shall allocate 80 percent 
     of the net spendable proceeds to the States for qualified 
     highway projects in the following manner:
       ``(i) 50 percent of such allocation shall be in accordance 
     with the formulas for apportioning funds under sections 
     104(b) and 144 of title 23, United States Code.
       ``(ii) 50 percent of such allocation shall be for projects, 
     including projects of national significance and high priority 
     projects, designated by law.
       ``(B) Qualified public transportation projects.--From Build 
     America bonds issued under the annual limitation in paragraph 
     (1)(A), the Transportation Finance Corporation shall allocate 
     20 percent of the net spendable proceeds to the States for 
     qualified public transportation projects in the following 
     manner:
       ``(i) 50 percent of such allocation shall be in accordance 
     with the distribution of public transportation formula grants 
     under sections 5307, 5308, 5310, 5311, and 5327 of title 49, 
     United States Code.
       ``(ii) 50 percent of such allocation shall be for projects, 
     including projects of national significance and high priority 
     projects, designated by law.
       ``(4) Minimum allocations to states.--In making allocations 
     for each calendar year under paragraph (3), the 
     Transportation Finance Corporation shall ensure that the 
     amount allocated for qualified projects located in each State 
     for such calendar year is not less than 1 percent of the 
     total amount allocated for such year.
       ``(5) Carryover of unused issuance limitation.--If for any 
     calendar year the limitation amount imposed by paragraph (1) 
     exceeds the amount of Build America bonds issued during such 
     year, such excess shall be carried forward to one or more 
     succeeding calendar years as an addition to the limitation 
     imposed by paragraph (1) and until used by issuance of Build 
     America bonds.
       ``(6) Issuance of small denomination bonds.--From the Build 
     America bond limitation for each year, the Transportation 
     Finance Corporation shall issue a limited quantity of Build 
     America bonds in small denominations suitable for purchase as 
     gifts by individual investors wishing to show their support 
     for investing in America's infrastructure.
       ``(h) Special Rules Relating to Arbitrage.--
       ``(1) In general.--Subject to paragraph (2), an issue shall 
     be treated as meeting the requirements of this subsection if 
     as of the date of issuance, the Transportation Finance 
     Corporation reasonably expects--
       ``(A) to spend at least 85 percent of the net spendable 
     proceeds from the sale of the issue for 1 or more qualified 
     projects within the 5-year period beginning on such date,
       ``(B) to incur a binding commitment with a third party to 
     spend at least 10 percent of the net spendable proceeds from 
     the sale of the issue, or to commence construction, with 
     respect to such projects within the 12-month period beginning 
     on such date, and
       ``(C) to proceed with due diligence to complete such 
     projects and to spend the net spendable proceeds from the 
     sale of the issue.
       ``(2) Spent proceeds.--Net spendable proceeds are 
     considered spent by the Transportation Finance Corporation 
     when a sponsor of a qualified project obtains a reimbursement 
     from the Transportation Finance Corporation for eligible 
     project costs.
       ``(3) Rules regarding continuing compliance after 5-year 
     determination.--If at least 85 percent of the net spendable 
     proceeds from the sale of the issue is not expended for 1 or 
     more qualified projects within the 5-year period beginning on 
     the date of issuance, but the requirements of paragraph (1) 
     are otherwise met, an issue shall be treated as continuing to 
     meet the requirements of this subsection if the 
     Transportation Finance Corporation uses all unspent net 
     spendable proceeds from the sale of the issue to redeem bonds 
     of the issue within 90 days after the end of such 5-year 
     period.
       ``(4) Reallocation.--In the event the recipient of an 
     allocation under subsection (g) fails to demonstrate to the 
     satisfaction of the Transportation Finance Corporation that 
     its actions will allow the Transportation Finance Corporation 
     to meet the requirements under this subsection, the 
     Transportation Finance Corporation may redistribute the 
     allocation meant for such recipient to other recipients.
       ``(i) Recapture of Portion of Credit Where Cessation of 
     Compliance.--
       ``(1) In general.--If any bond which when issued purported 
     to be a Build America bond ceases to be such a qualified 
     bond, the Transportation Finance Corporation shall pay to the 
     United States (at the time required by the Secretary) an 
     amount equal to the sum of--
       ``(A) the aggregate of the credits allowable under this 
     section with respect to such bond (determined without regard 
     to subsection (c)) for taxable years ending during the 
     calendar year in which such cessation occurs and the 2 
     preceding calendar years, and
       ``(B) interest at the underpayment rate under section 6621 
     on the amount determined under subparagraph (A) for each 
     calendar year for the period beginning on the first day of 
     such calendar year.
       ``(2) Failure to pay.--If the Transportation Finance 
     Corporation fails to timely pay the amount required by 
     paragraph (1) with respect to such bond, the tax imposed by 
     this chapter on each holder of any such bond which is part of 
     such issue shall be increased (for the taxable year of the 
     holder in which such cessation occurs) by the aggregate 
     decrease in the credits allowed under this section to such 
     holder for taxable years beginning in such 3 calendar years 
     which would have resulted solely from denying any credit 
     under this section with respect to such issue for such 
     taxable years.
       ``(3) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (2) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     paragraph (2) shall not be treated as a tax imposed by this 
     chapter for purposes of determining--
       ``(i) the amount of any credit allowable under this part, 
     or
       ``(ii) the amount of the tax imposed by section 55.
       ``(j) Build America Trust Account.--
       ``(1) In general.--The following amounts shall be held in a 
     Build America Trust Account by the Transportation Finance 
     Corporation:
       ``(A) The proceeds from the sale of all bonds issued under 
     this section.
       ``(B) The amount of any matching contributions with respect 
     to such bonds.
       ``(C) The investment earnings on proceeds from the sale of 
     such bonds.
       ``(D) Any earnings on any amounts described in subparagraph 
     (A), (B), or (C).
       ``(2) Use of funds.--Amounts in the Build America Trust 
     Account may be used only to pay costs of qualified projects, 
     redeem Build America bonds, and fund the operations of the 
     Transportation Finance Corporation, except that amounts 
     withdrawn from the Build America Trust Account to pay costs 
     of qualified projects may not exceed the aggregate proceeds 
     from the sale of Build America bonds described in subsection 
     (e)(1)(A).
       ``(3) Use of remaining funds in build america trust 
     account.--Upon the redemption of all Build America bonds 
     issued under this section, any remaining amounts in the Build 
     America Trust Account shall be available to the 
     Transportation Finance Corporation to pay the costs of any 
     qualified project.
       ``(4) Costs of qualified projects.--For purposes of this 
     section, the costs of qualified projects which may be funded 
     by amounts in the Build America Trust Account may only relate 
     to capital investments in depreciable assets and may not 
     include any costs relating to operations, maintenance, or 
     rolling stock.
       ``(5) Applicability of federal law.--The requirements of 
     any Federal law, including titles 23, 40, and 49 of the 
     United States Code, which would otherwise apply to projects 
     to which the United States is a party or to funds made 
     available under such law and projects assisted with those 
     funds shall apply to--
       ``(A) funds made available under the Build America Trust 
     Account for similar qualified projects, including 
     contributions required under subsection (k), and
       ``(B) similar qualified projects assisted by the 
     Transportation Finance Corporation through the use of such 
     funds.
       ``(6) Investment.--It shall be the duty of the 
     Transportation Finance Corporation to invest in investment 
     grade obligations such portion of the Build America Trust 
     Account as is not, in the judgment of the Board of Directors 
     of the Transportation Finance Corporation, required to meet 
     current withdrawals. Such investments may be made in State 
     and local transportation bonds.
       ``(k) State Contribution Requirements.--

[[Page S1188]]

       ``(1) In general.--For purposes of subsection (e)(3), the 
     State contribution requirement of this subsection is met with 
     respect to any qualified project if the Transportation 
     Finance Corporation has received from 1 or more States, not 
     later than the date of issuance of the bond, written 
     commitments for matching contributions of not less than 20 
     percent of the cost of the qualified project.
       ``(2) State matching contributions may not include federal 
     funds.--For purposes of this subsection, State matching 
     contributions shall not be derived, directly or indirectly, 
     from Federal funds, including any transfers from the Highway 
     Trust Fund under section 9503.
       ``(l) Utilization of Updated Construction Technology for 
     Qualified Projects.--For purposes of subsection (e)(4), the 
     requirement of this subsection is met if the appropriate 
     State agency relating to the qualified project has updated 
     its accepted construction technologies to match a list 
     prescribed by the Secretary of Transportation and in effect 
     on the date of the approval of the project as a qualified 
     project.
       ``(m) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Administrative costs.--The term `administrative 
     costs' shall only include costs of issuance of Build America 
     bonds and operation costs of the Transportation Corporation.
       ``(2) Bond.--The term `bond' includes any obligation.
       ``(3) Net spendable proceeds.--The term `net spendable 
     proceeds' means the proceeds from the sale of any Build 
     America bond issued under this section reduced by not more 
     than 5 percent of such proceeds for administrative costs.
       ``(4) State.--The term `State' shall have the meaning given 
     such term by section 101 of title 23, United States Code.
       ``(5) Treatment of changes in use.--For purposes of 
     subsection (e)(1)(A), the net spendable proceeds from the 
     sale of an issue shall not be treated as used for a qualified 
     project to the extent that the Transportation Finance 
     Corporation takes any action within its control which causes 
     such proceeds not to be used for a qualified project. The 
     Secretary shall specify remedial actions which may be taken 
     (including conditions to taking such remedial actions) to 
     prevent an action described in the preceding sentence from 
     causing a bond to fail to be a Build America bond.
       ``(6) Partnership; s corporation; and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, rules similar to the 
     rules of section 41(g) shall apply with respect to the credit 
     allowable under subsection (a).
       ``(7) Bonds held by regulated investment companies.--If any 
     Build America bond is held by a regulated investment company, 
     the credit determined under subsection (a) shall be allowed 
     to shareholders of such company under procedures prescribed 
     by the Secretary.
       ``(8) Credits may be stripped.--Under regulations 
     prescribed by the Secretary--
       ``(A) In general.--There may be a separation (including at 
     issuance) of the ownership of a Build America bond and the 
     entitlement to the credit under this section with respect to 
     such bond. In case of any such separation, the credit under 
     this section shall be allowed to the person who on the credit 
     allowance date holds the instrument evidencing the 
     entitlement to the credit and not to the holder of the bond.
       ``(B) Certain rules to apply.--In the case of a separation 
     described in subparagraph (A), the rules of section 1286 
     shall apply to the Build America bond as if it were a 
     stripped bond and to the credit under this section as if it 
     were a stripped coupon.
       ``(9) Credits may be transferred.--Nothing in any law or 
     rule of law shall be construed to limit the transferability 
     of the credit or bond allowed by this section through sale 
     and repurchase agreements.
       ``(10) Reporting.--The Transportation Finance Corporation 
     shall submit reports similar to the reports required under 
     section 149(e).
       ``(11) Prohibition on Use of Highway Trust Fund.--
     Notwithstanding any other provision of law, no funds derived 
     from the Highway Trust Fund established under section 9503 
     shall be used to pay costs associated with the Build America 
     bonds issued under this section.''.
       (b) Amendments to Other Code Sections.--
       (1) Reporting.--Subsection (d) of section 6049 (relating to 
     returns regarding payments of interest) is amended by adding 
     at the end the following new paragraph:
       ``(8) Reporting of credit on build america bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(d) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(b)(4)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A), subsection (b)(4) shall be 
     applied without regard to subparagraphs (A), (H), (I), (J), 
     (K), and (L)(i) of such subsection.
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (2) Treatment for estimated tax purposes.--
       (A) Individual.--Section 6654 (relating to failure by 
     individual to pay estimated income tax) is amended by 
     redesignating subsection (m) as subsection (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Special Rule for Holders of Build America Bonds.--For 
     purposes of this section, the credit allowed by section 54 to 
     a taxpayer by reason of holding a Build America bond on a 
     credit allowance date shall be treated as if it were a 
     payment of estimated tax made by the taxpayer on such 
     date.''.
       (B) Corporate.--Subsection (g) of section 6655 (relating to 
     failure by corporation to pay estimated income tax) is 
     amended by adding at the end the following new paragraph:
       ``(5) Special rule for holders of build america bonds.--For 
     purposes of this section, the credit allowed by section 54 to 
     a taxpayer by reason of holding a Build America bond on a 
     credit allowance date shall be treated as if it were a 
     payment of estimated tax made by the taxpayer on such 
     date.''.
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Subpart H. Nonrefundable Credit for Holders of Build America 
              Bonds.''.

       (2) Section 6401(b)(1) is amended by striking ``and G'' and 
     inserting ``G, and H''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the day after the 
     date of the enactment of this Act.

     SEC. 5674. TRANSPORTATION FINANCE CORPORATION.

       (a) Establishment and Status.--There is established a body 
     corporate to be known as the ``Transportation Finance 
     Corporation'' (hereafter in this section referred to as the 
     ``Corporation''). The Corporation is not a department, 
     agency, or instrumentality of the United States Government, 
     and shall not be subject to title 31, United States Code.
       (b) Principal Office; Application of Laws.--The principal 
     office and place of business of the Corporation shall be in 
     the District of Columbia, and, to the extent consistent with 
     this section, the District of Columbia Business Corporation 
     Act (D.C. Code 29-301 et seq.) shall apply.
       (c) Functions of Corporation.--The Corporation shall--
       (1) issue Build America bonds for the financing of 
     qualified projects as required under section 54 of the 
     Internal Revenue Code of 1986,
       (2) establish and operate the Build America Trust Account 
     as required under section 54(j) of such Code,
       (3) act as a centralized entity to provide financing for 
     qualified projects,
       (4) leverage resources and stimulate public and private 
     investment in transportation infrastructure,
       (5) encourage States to create additional opportunities for 
     the financing of transportation infrastructure and to provide 
     technical assistance to States, if needed,
       (6) perform any other function the sole purpose of which is 
     to carry out the financing of qualified projects through 
     Build America bonds, and
       (7) not later than February 15 of each year submit a report 
     to Congress--
       (A) describing the activities of the Corporation for the 
     preceding year, and
       (B) specifying whether the amounts deposited and expected 
     to be deposited in the Build America Trust Account are 
     sufficient to fully repay at maturity the principal of any 
     outstanding Build America bonds issued pursuant to such 
     section 54.
       (d) Powers of Corporation.--The Corporation--
       (1) may sue and be sued, complain and defend, in its 
     corporate name, in any court of competent jurisdiction,
       (2) may adopt, alter, and use a seal, which shall be 
     judicially noticed,
       (3) may prescribe, amend, and repeal such rules and 
     regulations as may be necessary for carrying out the 
     functions of the Corporation,
       (4) may make and perform such contracts and other 
     agreements with any individual, corporation, or other private 
     or public entity however designated and wherever situated, as 
     may be necessary for carrying out the functions of the 
     Corporation,
       (5) may determine and prescribe the manner in which its 
     obligations shall be incurred and its expenses allowed and 
     paid,
       (6) may, as necessary for carrying out the functions of the 
     Corporation, employ and fix the compensation of employees and 
     officers,
       (7) may lease, purchase, or otherwise acquire, own, hold, 
     improve, use, or otherwise deal in and with such property 
     (real, personal, or mixed) or any interest therein, wherever 
     situated, as may be necessary for carrying out the functions 
     of the Corporation,
       (8) may accept gifts or donations of services or of 
     property (real, personal, or mixed), tangible or intangible, 
     in furtherance of the purposes of this Act, and
       (9) shall have such other powers as may be necessary and 
     incident to carrying out this Act.
       (e) Nonprofit Entity; Restriction on Use of Moneys; 
     Conflict of Interests; Audits.--
       (1) Nonprofit entity.--The Corporation shall be a nonprofit 
     corporation and shall have no capital stock.

[[Page S1189]]

       (2) Restriction.--No part of the Corporation's revenue, 
     earnings, or other income or property shall inure to the 
     benefit of any of its directors, officers, or employees, and 
     such revenue, earnings, or other income or property shall 
     only be used for carrying out the purposes of this Act.
       (3) Conflict of interests.--No director, officer, or 
     employee of the Corporation shall in any manner, directly or 
     indirectly participate in the deliberation upon or the 
     determination of any question affecting his or her personal 
     interests or the interests of any corporation, partnership, 
     or organization in which he or she is directly or indirectly 
     interested.
       (4) Audits.--
       (A) Audits by independent certified public accountants.--
       (i) In general.--The Corporation's financial statements 
     shall be audited annually in accordance with generally 
     accepted auditing standards by independent certified public 
     accountants that are certified by a regulatory authority of a 
     State or other political subdivision of the United States. 
     The audits shall be conducted at the place or places where 
     the accounts of the Corporation are normally kept. All books, 
     accounts, financial records, reports, files, and all other 
     papers, things, or property belonging to or in use by the 
     Corporation and necessary to facilitate the audit shall be 
     made available to the person or persons conducting the 
     audits, and full facilities for verifying transactions with 
     the balances or securities held by depositories, fiscal 
     agents, and custodians shall be afforded to such person or 
     persons.
       (ii) Reporting requirements.--The report of each annual 
     audit described in clause (i) shall be included in the annual 
     report required by subsection (c)(8).
       (B) Record keeping requirements.--The Corporation shall 
     ensure that each recipient of assistance from the Corporation 
     keeps--
       (i) separate accounts with respect to such assistance,
       (ii) such records as may be reasonably necessary to fully 
     disclose--

       (I) the amount and the disposition by such recipient of the 
     proceeds of such assistance,
       (II) the total cost of the project or undertaking in 
     connection with which such assistance is given or used, and 
     the extent to which such costs are for a qualified project, 
     and
       (III) the amount and nature of that portion of the cost of 
     the project or undertaking supplied by other sources, and

       (iii) such other records as will facilitate an effective 
     audit.
       (C) Audit and examination of books.--The Corporation shall 
     ensure that the Corporation, or any of the Corporation's duly 
     authorized representatives, shall have access for the purpose 
     of audit and examination to any books, documents, papers, and 
     records of any recipient of assistance from the Corporation 
     that are pertinent to such assistance.
       (f) Exemption From Taxes.--
       (1) In general.--The Corporation, including its franchise, 
     capital, reserves, surplus, sinking funds, mortgages or other 
     security holdings, and income, shall be exempt from all 
     taxation now or hereafter imposed by the United States, by 
     any territory, dependency, or possession thereof, or by any 
     State, county, municipality, or local taxing authority, 
     except that any real property of the Corporation shall be 
     subject to State, territorial, county, municipal, or local 
     taxation to the same extent according to its value as other 
     real property is taxed.
       (2) Financial obligations.--Build America bonds or other 
     obligations issued by the Corporation and the interest on or 
     tax credits with respect to its bonds or other obligations 
     shall not be subject to taxation by any State, county, 
     municipality, or local taxing authority.
       (g) Assistance for Transportation Purposes.--
       (1) In general.--In order to carry out the corporate 
     functions described in subsection (c), the Corporation shall 
     be eligible to receive discretionary grants, contracts, 
     gifts, contributions, or technical assistance from any 
     Federal department or agency, to the extent permitted by law.
       (2) Agreement.--In order to receive any assistance 
     described in this subsection, the Corporation shall enter 
     into an agreement with the Federal department or agency 
     providing such assistance, under which the Corporation 
     agrees--
       (A) to use such assistance to provide funding and technical 
     assistance only for activities which the Board of Directors 
     of the Corporation determines are consistent with the 
     corporate functions described in subsection (c), and
       (B) to review the activities of State transportation 
     agencies and other entities receiving assistance from the 
     Corporation to assure that the corporate functions described 
     in subsection (c) are carried out.
       (3) Construction.--Nothing in this section shall be 
     construed to establish the Corporation as a department, 
     agency, or instrumentality of the United States Government, 
     or to establish the members of the Board of Directors of the 
     Corporation, or the officers and employees of the 
     Corporation, as officers or employees of the United States 
     Government.
       (h) Management of Corporation.--
       (1) Board of directors; membership; designation of 
     chairperson and vice chairperson; appointment considerations; 
     term; vacancies.--
       (A) Board of directors.--The management of the Corporation 
     shall be vested in a board of directors composed of 15 
     members appointed by the President, by and with the advice 
     and consent of the Senate.
       (B) Chairperson and vice chairperson.--The President shall 
     designate 1 member of the Board to serve as Chairperson of 
     the Board and 1 member to serve as Vice Chairperson of the 
     Board.
       (C) Individuals from private life.--Eleven members of the 
     Board shall be appointed from private life.
       (D) Federal officers and employees.--Four members of the 
     Board shall be appointed from among officers and employees of 
     agencies of the United States concerned with infrastructure 
     development.
       (E) Appointment considerations.--All members of the Board 
     shall be appointed on the basis of their understanding of and 
     sensitivity to infrastructure development processes. Members 
     of the Board shall be appointed so that not more than 8 
     members of the Board are members of any 1 political party.
       (F) Terms.--Members of the Board shall be appointed for 
     terms of 3 years, except that of the members first appointed, 
     as designated by the President at the time of their 
     appointment, 5 shall be appointed for terms of 1 year and 5 
     shall be appointed for terms of 2 years.
       (G) Vacancies.--A member of the Board appointed to fill a 
     vacancy occurring before the expiration of the term for which 
     that member's predecessor was appointed shall be appointed 
     only for the remainder of that term. Upon the expiration of a 
     member's term, the member shall continue to serve until a 
     successor is appointed and is qualified.
       (2) Compensation, actual, necessary, and transportation 
     expenses.--Members of the Board shall serve without 
     additional compensation, but may be reimbursed for actual and 
     necessary expenses not exceeding $100 per day, and for 
     transportation expenses, while engaged in their duties on 
     behalf of the Corporation.
       (3) Quorum.--A majority of the Board shall constitute a 
     quorum.
       (4) President of corporation.--The Board of Directors shall 
     appoint a president of the Corporation on such terms as the 
     Board may determine.
                                 ______
                                 
  SA 2554. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place insert:
       ``(a) Study.--The Secretary of Transportation shall, in 
     consultation with State and local government officials, 
     conduct a study of the impact of blocked highway-railroad 
     grade crossings on the ability of emergency responders to 
     perform public safety and security duties.
       (b) Report on the Impact of Blocked Highway-Railroad Grade 
     Crossings on Emergency Responders.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     submit the results of the study and recommendations for 
     reducing the impact of blocked crossings on emergency 
     response to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure.''
                                 ______
                                 
  SA 2555. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place insert:
       ``(a) Notification Procedures.--
       (1) Regulations.--The Secretary of Transportation shall 
     prescribe regulations setting forth procedures for a railroad 
     to immediately notify first responders in communities that 
     lie in the path of a runaway train.
       (2) Time for issuance of regulations.--The Secretary shall 
     issue the final regulations under this section not later than 
     120 days after the date of enactment of this Act.
       (3) Definitions.-- In this section, the term `runaway 
     train' means a locomotive, train, rail car, or other item of 
     railroad equipment that, at a particular moment in time, is 
     rolling on tracks outside the operations limits of a railroad 
     and is not under the control of the railroad.
       (b) Response Procedures.--Not later than 60 days after the 
     Secretary prescribes the regulations under subsection (a), 
     each railroad shall submit to the Department of 
     Transportation for the Secretary's approval the procedures 
     proposed by the railroad for providing the notice described 
     in such subsection.
       (c) Reporting of Incidents Required.--The Secretary shall 
     require railroads to report to the Department of 
     Transportation each incident of a runaway train.''
                                 ______
                                 
  SA 2556. Mr. KOHL submitted an amendment intended to be proposed to 
amendment SA 2302 submitted by Mr. Bayh (for himself, Mr. Durbin, Mr. 
Lugar, Mr. Kohl, and Mr. Fitzgerald) and intended to be proposed to the 
bill S. 1072, to authorize funds for Federal-

[[Page S1190]]

aid highways, highway safety programs, and transit programs, and for 
other purposes; which was ordered to lie on the table; as follows:

       Beginning on page 55, strike line 25 and all that follows 
     through page 57, line 23, and insert the following:
       ``(c) Special Rules.--
       ``(1) Minimum combined allocation.--For each fiscal year, 
     before making the allocations under subsection (a)(1), the 
     Secretary shall allocate among the States amounts sufficient 
     to ensure that no State receives a combined total of amounts 
     allocated under subsection (a)(1), apportionments for the 
     programs specified in subsection (a)(2), and amounts 
     allocated under this subsection, that is less than 110 
     percent of the sum of--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceeds
       ``(B) the sum of--
       ``(i) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2); and
       ``(ii) an amount which is equivalent to--

       ``(I) the amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the excess of the tax rate applicable for a 
     gallon of gasoline over the tax rate applicable for a gallon 
     of gasohol for such years; plus
       ``(II) an amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the amount of the tax rate applicable to a 
     gallon of gasohol which is not deposited into the Highway 
     Trust Fund with respect to each such year.

       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B)(i) are--
       ``(A) for fiscal year 2004, 120 percent;
       ``(B) for fiscal year 2005, 130 percent;
       ``(C) for fiscal year 2006, 134 percent;
       ``(D) for fiscal year 2007, 137 percent;
       ``(E) for fiscal year 2008, 145 percent; and
       ``(F) for fiscal year 2009, 250 percent.''.
       ``(3) No negative adjustment.--Notwithstanding subsection 
     (d), no negative adjustment shall be made under subsection 
     (a)(1) to the apportionment of any State.
       ``(4) Minimum share of tax payments.--Notwithstanding 
     subsection (d), for each fiscal year, the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a percentage of apportionments for the 
     fiscal year for the programs specified in subsection (a)(2) 
     that is less than 90.5 percent of the percentage share of the 
     State of estimated tax payments attributable to highway users 
     in the State paid into the Highway Trust Fund (other than the 
     Mass Transit Account) in the most recent fiscal year for 
     which data are available.
       ``(d) Limitation on Adjustments.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3) of subsection (c), no State shall receive, for any fiscal 
     year, additional amounts under subsection (a)(1) if--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceeds
       ``(B) the sum of--
       ``(i) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2); and
       ``(ii) an amount which is equivalent to--

       ``(I) the amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the excess of the tax rate applicable for a 
     gallon of gasoline over the tax rate applicable for a gallon 
     of gasohol for such years; plus
       ``(II) an amount equal to the number of gallons of gasohol 
     sold within the State during fiscal years 1996 through 2001 
     multiplied by the amount of the tax rate applicable to a 
     gallon of gasohol which is not deposited into the Highway 
     Trust Fund with respect to each such year.

       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B)(i) are--
       ``(A) for fiscal year 2004, 120 percent;
       ``(B) for fiscal year 2005, 130 percent;
       ``(C) for fiscal year 2006, 134 percent;
       ``(D) for fiscal year 2007, 137 percent;
       ``(E) for fiscal year 2008, 145 percent; and
       ``(F) for fiscal year 2009, 250 percent.''.
                                 ______
                                 
  SA 2557. Ms. STABENOW (for herself and Mr. Levin) submitted an 
amendment intended to be proposed to amendment SA 2441 submitted by Ms. 
Stabenow (for herself and Mr. Levin) and intended to be proposed to the 
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:
       ``(B)(i) $101,800,000 of the amounts made available under 
     section 5338(b)(4) shall be allocated for the Bus Transit 
     Equity Subaccount established under paragraph (7); and
       ``(ii) the remaining amounts made available under section 
     5338(b)(4) shall be allocated for capital projects for buses 
     and bus-related equipment and facilities.
       ``(3) Fixed guideway modernization.--The amounts made 
     available for fixed guideway modernization under section 
     5338(b)(2)(K) for fiscal year 2005 and each fiscal year 
     thereafter shall be allocated in accordance with section 
     5337.
       ``(4) Preliminary engineering.--Not more that 8 percent of 
     the allocation described in paragraphs (1)(A) and (2)(A) may 
     be expended on preliminary engineering.
       ``(5) Funding for ferry boats.--Of the amounts described in 
     paragraphs (1)(A) and (2)(A), $10,400,000 shall be available 
     in each of the fiscal years 2004 through 2009 for capital 
     projects in Alaska and Hawaii for new fixed guideway systems 
     and extension projects utilizing ferry boats, ferry boat 
     terminals, or approaches to ferry boat terminals.
       ``(6) Bus and bus facility grants.--
       ``(A) Considerations.--In making grants under paragraphs 
     (1)(C) and (2)(B), the Secretary shall consider the age and 
     condition of buses, bus fleets, related equipment, and bus-
     related facilities.
       ``(B) Projects not in urbanized areas.--Of the amounts made 
     available under paragraphs (1)(C) and (2)(B), not less than 
     5.5 percent shall be available in each fiscal year for 
     projects that are not in urbanized areas.
       ``(C) Intermodal terminals.--Of the amounts made available 
     under paragraphs (1)(C) and (2)(B), not less than $75,000,000 
     shall be available in each fiscal year for intermodal 
     terminal projects, including the intercity bus portion of 
     such projects.
       ``(7) Bus transit equity subaccount.--
       ``(A) Establishment.--There is established a Bus Transit 
     Equity Subaccount within the Mass Transit Account of the 
     Highway Trust Fund.
       ``(B) Eligibility.--Any of the 50 States shall be eligible 
     for funding under the Bus Transit Equity Subaccount if the 
     State--
       ``(i) is otherwise scheduled to receive under sections 
     5303, 5307, 5309, 5310, 5311, 5313(b), 5336, and 5340 for 
     fiscal years 2004 through 2009, an amount that is less than 
     175 percent of the amount the State received under sections 
     5303, 5307, 5309, 5310, 5311, 5313(b), and 5336 for fiscal 
     years 1998 through 2003; and
       ``(ii) received less than 1.25 percent of the total amount 
     allocated to the 50 States in fiscal year 2002 for fixed 
     guideways modernization and new starts.
       ``(C) Allocation.--Each eligible State under subparagraph 
     (B) shall be allocated from the Bus Transit Equity 
     Subaccount, for each of the fiscal years 2005 through 2009, 
     an amount that is equal to 20 percent of the difference 
     between the amount the State is otherwise scheduled to 
     receive under sections 5303, 5307, 5309, 5310, 5311, 5313(b), 
     5336, and 5340 for fiscal years 2004 through 2009, and the 
     amount which is equal to 175 percent of the amount the State 
     received under sections 5303, 5307, 5309, 5310, 5311, 
     5313(b), and 5336 for fiscal years 1998 through 2003.''.

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