[Congressional Record Volume 151, Number 105 (Thursday, July 28, 2005)]
[House]
[Pages H7043-H7550]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

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                        House of Representatives

  CONFERENCE REPORT ON H.R. 3, SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT 
             TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS

  Mr. YOUNG of Alaska submitted the following conference report and 
statement on the bill (H.R. 3) to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes:

                  Conference Report (H. Rept. 109-203)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3), to authorize funds for Federal-aid highways, highway 
     safety programs, and transit programs, and for other 
     purposes, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users'' or ``SAFETEA-LU''.
       (b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. General definitions.

                     TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorization of Programs

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Equity bonus program.
Sec. 1105. Revenue aligned budget authority.
Sec. 1106. Future Interstate System routes.
Sec. 1107. Metropolitan planning.
Sec. 1108.  Transfer of highway and transit funds.
Sec. 1109.  Recreational trails.
Sec. 1110. Temporary traffic control devices.
Sec. 1111.  Set-asides for Interstate discretionary projects.
Sec. 1112.  Emergency relief.
Sec. 1113.  Surface transportation program.
Sec. 1114. Highway bridge program.
Sec. 1115. Highway use tax evasion projects.
Sec. 1116.  Appalachian development highway system.
Sec. 1117. Transportation, community, and system preservation program.
Sec. 1118. Territorial highway program.
Sec. 1119. Federal lands highways.
Sec. 1120. Puerto Rico highway program.
Sec. 1121. HOV facilities.
Sec. 1122. Definitions.

                     Subtitle B--Congestion Relief

Sec. 1201.  Real-time system management information program.

                  Subtitle C--Mobility and Efficiency

Sec. 1301.  Projects of national and regional significance.
Sec. 1302.  National corridor infrastructure improvement program.
Sec. 1303. Coordinated border infrastructure program.
Sec. 1304.  High priority corridors on the National Highway System.
Sec. 1305.  Truck parking facilities.
Sec. 1306.  Freight intermodal distribution pilot grant program.
Sec. 1307. Deployment of magnetic levitation transportation projects.
Sec. 1308. Delta region transportation development program.
Sec. 1309. Extension of public transit vehicle exemption from axle 
              weight restrictions.
Sec. 1310. Interstate oasis program.

                       Subtitle D--Highway Safety

Sec. 1401. Highway safety improvement program.
Sec. 1402. Worker injury prevention and free flow of vehicular traffic.
Sec. 1403. Toll facilities workplace safety study.
Sec. 1404.  Safe routes to school program.
Sec. 1405.  Roadway safety improvements for older drivers and 
              pedestrians.
Sec. 1406.  Safety incentive grants for use of seat belts.
Sec. 1407.  Safety incentives to prevent operation of motor vehicles by 
              intoxicated persons.
Sec. 1408.  Improvement or replacement of highway features on National 
              Highway System.
Sec. 1409.  Work zone safety grants.
Sec. 1410.  National Work Zone Safety Information Clearinghouse.
Sec. 1411. Roadway safety.
Sec. 1412. Idling reduction facilities in Interstate rights-of-way.

            Subtitle E--Construction and Contract Efficiency

Sec. 1501.  Program efficiencies.
Sec. 1502.  Highways for LIFE pilot program.
Sec. 1503. Design build.

                          Subtitle F--Finance

Sec. 1601.  Transportation Infrastructure Finance and Innovation Act 
              amendments.
Sec. 1602.  State infrastructure banks.
Sec. 1603. Use of excess funds and funds for inactive projects.
Sec. 1604. Tolling.

                   Subtitle G--High Priority Projects

Sec. 1701. High Priority Projects program.
Sec. 1702. Project authorizations.
Sec. 1703.  Technical amendments to transportation projects.

                        Subtitle H--Environment

Sec. 1801.  Construction of ferry boats and ferry terminal facilities.
Sec. 1802.  National Scenic Byways Program.
Sec. 1803. America's Byways Resource Center.
Sec. 1804. National historic covered bridge preservation.
Sec. 1805. Use of debris from demolished bridges and overpasses.
Sec. 1806. Additional authorization of contract authority for States 
              with Indian reservations.
Sec. 1807.  Nonmotorized transportation pilot program.
Sec. 1808.  Addition to CMAQ-eligible projects.

                       Subtitle I--Miscellaneous

Sec. 1901.  Inclusion of requirements for signs identifying funding 
              sources in title 23.
Sec. 1902.  Donations and credits.
Sec. 1903. Inclusion of Buy America requirements in title 23.
Sec. 1904. Stewardship and oversight.
Sec. 1905. Transportation development credits.
Sec. 1906.  Grant program to prohibit racial profiling.
Sec. 1907.  Pavement marking systems demonstration projects.
Sec. 1908.  Inclusion of certain route segments on Interstate System 
              and NHS.
Sec. 1909. Future of surface transportation system.
Sec. 1910.  Motorist information concerning full service restaurants.
Sec. 1911. Approval and funding for certain construction projects.
Sec. 1912. Lead agency designation.

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Sec. 1913. Bridge construction, North Dakota.
Sec. 1914. Motorcyclist Advisory Council.
Sec. 1915. Loan forgiveness.
Sec. 1916. Treatment of off ramp.
Sec. 1917.  Opening of Interstate ramps.
Sec. 1918. Credit to State of Louisiana for State matching funds.
Sec. 1919. Road user fees.
Sec. 1920.  Transportation and local workforce investment.
Sec. 1921.  Update of obsolete text.
Sec. 1922.  Technical amendments to nondiscrimination section.
Sec. 1923.  Transportation assets and needs of Delta region.
Sec. 1924.  Alaska Way Viaduct study.
Sec. 1925. Community enhancement study.
Sec. 1926.  Budget justification.
Sec. 1927.  14th Amendment Highway and 3rd Infantry Division Highway.
Sec. 1928. Sense of Congress regarding Buy America.
Sec. 1929.  Designation of Daniel Patrick Moynihan Interstate Highway.
Sec. 1930.  Designation of Thomas P. ``Tip'' O'Neill, Jr. Tunnel.
Sec. 1931. Richard Nixon Parkway, California.
Sec. 1932. Amo Houghton Bypass.
Sec. 1933. Billy Tauzin Energy Corridor.
Sec. 1934. Transportation improvements.
Sec. 1935. Project flexibility.
Sec. 1936. Advances.
Sec. 1937. Roads in closed basins.
Sec. 1938. Technology.
Sec. 1939. BIA Indian Road Program.
Sec. 1940. Going-to-the-Sun Road, Glacier National Park, Montana.
Sec. 1941. Beartooth Highway, Montana.
Sec. 1942. Opening of airfield at Malmstrom Air Force Base, Montana.
Sec. 1943. Great Lakes ITS implementation.
Sec. 1944. Transportation construction and remediation, Ottawa County, 
              Oklahoma.
Sec. 1945. Infrastructure awareness program.
Sec. 1946. Gateway rural improvement pilot program.
Sec. 1947. Eligible safety improvements.
Sec. 1948. Emergency service route.
Sec. 1949. Knik Arm Bridge funding clarification.
Sec. 1950. Lincoln Parish, LA/I-20 Transportation Corridor Program.
Sec. 1951. Bonding assistance program.
Sec. 1952. Congestion relief.
Sec. 1953. Authorization of appropriations.
Sec. 1954. Bicycle transportation and pedestrian walkways.
Sec. 1955. Conveyance to the City of Ely, Nevada.
Sec. 1956. Brownfields grants.
Sec. 1957. Traffic circle construction, Clarendon, Vermont.
Sec. 1958. Limitation on project approval.
Sec. 1959. Cross harbor freight movement project.
Sec. 1960. Denali access system program.
Sec. 1961. I-95/Contee Road interchange study.
Sec. 1962. Multimodal facility improvements.
Sec. 1963. Apollo Theater leases.
Sec. 1964. Project Federal share.

                        TITLE II--HIGHWAY SAFETY

Sec. 2001. Authorization of appropriations.
Sec. 2002. Highway safety programs.
Sec. 2003.  Highway safety research and outreach programs.
Sec. 2004. Occupant protection incentive grants.
Sec. 2005. Grants for primary safety belt use laws.
Sec. 2006. State traffic safety information system improvements.
Sec. 2007. Alcohol-impaired driving countermeasures.
Sec. 2008. NHTSA accountability.
Sec. 2009. High visibility enforcement program.
Sec. 2010. Motorcyclist safety.
Sec. 2011. Child safety and child booster seat incentive grants.
Sec. 2012.  Safety data.
Sec. 2013.  Drug-impaired driving enforcement.
Sec. 2014.  First responder vehicle safety program.
Sec. 2015. Driver performance study.
Sec. 2016. Rural State emergency medical services optimization pilot 
              program.
Sec. 2017. Older driver safety; law enforcement training.
Sec. 2018. Safe intersections.
Sec. 2019. National Highway Safety Advisory Committee technical 
              correction.
Sec. 2020.  Presidential Commission on Alcohol-Impaired Driving.
Sec. 2021. Sense of the Congress in support of increased public 
              awareness of blood alcohol concentration levels and 
              dangers of alcohol-impaired driving.
Sec. 2022. Effective date.

                    TITLE III--PUBLIC TRANSPORTATION

Sec. 3001. Short title.
Sec. 3002. Amendments to title 49, United States Code; updated 
              terminology.
Sec. 3003. Policies, findings, and purposes.
Sec. 3004. Definitions.
Sec. 3005. Metropolitan transportation planning.
Sec. 3006. Statewide transportation planning.
Sec. 3007. Planning programs.
Sec. 3008. Private enterprise participation.
Sec. 3009. Urbanized area formula grants.
Sec. 3010. Clean fuels grant program.
Sec. 3011. Capital investment grants.
Sec. 3012. Formula grants for special needs of elderly individuals and 
              individuals with disabilities.
Sec. 3013. Formula grants for other than urbanized areas.
Sec. 3014. Research, development, demonstration, and deployment 
              projects.
Sec. 3015. Transit cooperative research program.
Sec. 3016. National research and technology programs.
Sec. 3017. National Transit Institute.
Sec. 3018. Job access and reverse commute formula grants.
Sec. 3019. New Freedom Program.
Sec. 3020. Bus testing facility.
Sec. 3021. Alternative transportation in parks and public lands.
Sec. 3022. Human resources programs.
Sec. 3023. General provisions on assistance.
Sec. 3024. Special provisions for capital projects.
Sec. 3025. Contract requirements.
Sec. 3026. Project management oversight and review.
Sec. 3027. Project review.
Sec. 3028. Investigations of safety hazards and security risks.
Sec. 3029. State safety oversight.
Sec. 3030. Controlled substances and alcohol misuse testing.
Sec. 3031. Employee protective arrangements.
Sec. 3032. Administrative procedures.
Sec. 3033. National transit database.
Sec. 3034. Apportionments of formula grants.
Sec. 3035. Apportionments based on fixed guideway factors.
Sec. 3036. Authorizations.
Sec. 3037. Alternatives analysis program.
Sec. 3038. Apportionments based on growing States formula factors.
Sec. 3039. Over-the-road bus accessibility program.
Sec. 3040. Obligation ceiling.
Sec. 3041. Adjustments for fiscal year 2005.
Sec. 3042. Terrorist attacks and other acts of violence against public 
              transportation systems.
Sec. 3043. Project authorizations for new fixed guideway capital 
              projects.
Sec. 3044. Projects for bus and bus-related facilities and clean fuels 
              grant program.
Sec. 3045. National fuel cell bus technology development program.
Sec. 3046. Allocations for national research and technology programs.
Sec. 3047. Forgiveness of grant agreement.
Sec. 3048. Cooperative procurement.
Sec. 3049. Transportation fringe benefits.
Sec. 3050. Commuter rail.
Sec. 3051. Paratransit service in Illinois.

                     TITLE IV--MOTOR CARRIER SAFETY

Sec. 4001. Short title.

              Subtitle A--Commercial Motor Vehicle Safety

Sec. 4101. Authorization of appropriations.
Sec. 4102. Increased penalties for out-of-service violations and false 
              records.
Sec. 4103. Penalty for denial of access to records.
Sec. 4104. Revocation of operating authority.
Sec. 4105. State laws relating to vehicle towing.
Sec. 4106. Motor carrier safety grants.
Sec. 4107. High priority activities and new entrants audits.
Sec. 4108. Data quality improvement.
Sec. 4109. Performance and registration information system management.
Sec. 4110. Border enforcement grants.
Sec. 4111. Motor carrier research and technology program.
Sec. 4112. Nebraska custom harvesters length exemption.
Sec. 4113. Pattern of safety violations by motor carrier management.
Sec. 4114.  Intrastate operations of interstate motor carriers.
Sec. 4115. Transfer provision.
Sec. 4116. Medical program.
Sec. 4117.  Safety performance history screening.
Sec. 4118. Roadability.
Sec. 4119. International cooperation.
Sec. 4120. Financial responsibility for private motor carriers.
Sec. 4121. Deposit of certain civil penalties into Highway Trust Fund.
Sec. 4122. CDL learner's permit program.
Sec. 4123. Commercial driver's license information system 
              modernization.
Sec. 4124. Commercial driver's license improvements.
Sec. 4125. Hobbs Act.
Sec. 4126. Commercial vehicle information systems and networks 
              deployment.
Sec. 4127. Outreach and education.
Sec. 4128. Safety data improvement program.
Sec. 4129. Operation of commercial motor vehicles by individuals who 
              use insulin to treat diabetes mellitus.
Sec. 4130. Operators of vehicles transporting agricultural commodities 
              and farm supplies.
Sec. 4131. Maximum hours of service for operators of ground water well 
              drilling rigs.
Sec. 4132. Hours of service for operators of utility service vehicles.
Sec. 4133. Hours of service rules for operators providing 
              transportation to movie production sites.
Sec. 4134. Grant program for commercial motor vehicle operators.
Sec. 4135. CDL task force.
Sec. 4136. Interstate van operations.
Sec. 4137. Decals.
Sec. 4138. High risk carrier compliance reviews.
Sec. 4139. Foreign commercial motor vehicles.
Sec. 4140. School bus driver qualifications and endorsement knowledge 
              test.
Sec. 4141. Driveaway saddlemount vehicles.
Sec. 4142. Registration of motor carriers and freight forwarders.
Sec. 4143. Authority to stop commercial motor vehicles.
Sec. 4144. Motor Carrier Safety Advisory Committee.
Sec. 4145. Technical corrections.
Sec. 4146. Exemption during harvest periods.
Sec. 4147. Emergency condition requiring immediate response.

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Sec. 4148. Substance abuse professionals.
Sec. 4149. Office of intermodalism.

               Subtitle B--Household Goods Transportation

Sec. 4201. Short title.
Sec. 4202. Definitions; application of provisions.
Sec. 4203. Payment of rates.
Sec. 4204. Additional registration requirements for motor carriers of 
              household goods.
Sec. 4205. Household goods carrier operations.
Sec. 4206. Enforcement of regulations related to transportation of 
              household goods.
Sec. 4207. Liability of carriers under receipts and bills of lading.
Sec. 4208. Arbitration requirements.
Sec. 4209. Civil penalties relating to household goods brokers and 
              unauthorized transportation.
Sec. 4210. Penalties for holding household goods hostage.
Sec. 4211. Consumer handbook on DOT web site.
Sec. 4212. Release of household goods broker information.
Sec. 4213. Working group for development of practices and procedures to 
              enhance Federal-State relations.
Sec. 4214. Consumer complaint information.
Sec. 4215. Review of liability of carriers.
Sec. 4216. Application of State consumer protection laws to certain 
              household goods carriers.

          Subtitle C--Unified Carrier Registration Act of 2005

Sec. 4301. Short title.
Sec. 4302. Relationship to other laws.
Sec. 4303. Inclusion of motor private and exempt carriers.
Sec. 4304. Unified Carrier Registration System.
Sec. 4305. Registration of motor carriers by States.
Sec. 4306. Identification of vehicles.
Sec. 4307. Use of UCR Agreement revenues as matching funds.
Sec. 4308. Regulations.

                  Subtitle D--Miscellaneous Provisions

Sec. 4401. Technical adjustment.
Sec. 4402. Transfer.
Sec. 4403. Extension of assistance.
Sec. 4404. Designations.
Sec. 4405. Limited exception.
Sec. 4406. Airport land amendment.
Sec. 4407. Rights-of-way.
Sec. 4408. Rialto Municipal Airport.
Sec. 4409. Conforming amendments.
Sec. 4410. Ralph M. Bartholomew Veterans' Memorial Bridge.
Sec. 4411. Don Young's Way.
Sec. 4412.  Quality bank adjustments.
Sec. 4413. Technical amendment.

                           TITLE V--RESEARCH

                          Subtitle A--Funding

Sec. 5101. Authorization of appropriations.
Sec. 5102. Obligation ceiling.
Sec. 5103. Findings.

            Subtitle B--Research, Technology, and Education

Sec. 5201. Research, technology, and education.
Sec. 5202. Long-term bridge performance program; innovative bridge 
              research and deployment program.
Sec. 5203. Technology deployment.
Sec. 5204. Training and education.
Sec. 5205. State planning and research.
Sec. 5206. International highway transportation outreach program.
Sec. 5207. Surface transportation environment and planning cooperative 
              research program.
Sec. 5208. Transportation research and development strategic planning.
Sec. 5209. National cooperative freight transportation research 
              program.
Sec. 5210. Future strategic highway research program.
Sec. 5211. Multistate corridor operations and management.

         Subtitle C--Intelligent Transportation System Research

Sec. 5301. National ITS program plan.
Sec. 5302. Use of funds.
Sec. 5303. Goals and purposes.
Sec. 5304. Infrastructure development.
Sec. 5305. General authorities and requirements.
Sec. 5306. Research and development.
Sec. 5307. National architecture and standards.
Sec. 5308. Road weather research and development program.
Sec. 5309. Centers for surface transportation excellence.
Sec. 5310. Definitions.

      Subtitle D--University Transportation Research; Scholarship 
                             Opportunities

Sec. 5401. National university transportation centers.
Sec. 5402. University transportation research.

                       Subtitle E--Other Programs

Sec. 5501. Transportation safety information management system project.
Sec. 5502. Surface transportation congestion relief solutions research 
              initiative.
Sec. 5503. Motor carrier efficiency study.
Sec. 5504. Center for Transportation Advancement and Regional 
              Development.
Sec. 5505. Transportation scholarship opportunities program.
Sec. 5506. Commercial remote sensing products and spatial information 
              technologies.
Sec. 5507. Rural interstate corridor communications study.
Sec. 5508. Transportation technology innovation and demonstration 
              program.
Sec. 5509. Repeal.
Sec. 5510. Notice.
Sec. 5511. Motorcycle crash causation study grants.
Sec. 5512. Advanced travel forecasting procedures program.
Sec. 5513. Research grants.
Sec. 5514. Competition for specification of alternative types of 
              culvert pipes.

            Subtitle F--Bureau of Transportation Statistics

Sec. 5601. Bureau of Transportation Statistics.

         TITLE VI--TRANSPORTATION PLANNING AND PROJECT DELIVERY

Sec. 6001. Transportation planning.
Sec. 6002. Efficient environmental reviews for project decisionmaking.
Sec. 6003. State assumption of responsibilities for certain programs 
              and projects.
Sec. 6004. State assumption of responsibility for categorical 
              exclusions.
Sec. 6005. Surface transportation project delivery pilot program.
Sec. 6006. Environmental restoration and pollution abatement; control 
              of noxious weeds and aquatic noxious weeds and 
              establishment of native species.
Sec. 6007. Exemption of Interstate System.
Sec. 6008. Integration of natural resource concerns into transportation 
              project planning.
Sec. 6009. Parks, recreation areas, wildlife and waterfowl refuges, and 
              historic sites.
Sec. 6010. Environmental review of activities that support deployment 
              of intelligent transportation systems.
Sec. 6011. Transportation conformity.
Sec. 6012. Federal Reference Method.
Sec. 6013. Air quality monitoring data influenced by exceptional 
              events.
Sec. 6014. Federal procurement of recycled coolant.
Sec. 6015.  Clean school bus program.
Sec. 6016. Special designation.
Sec. 6017.  Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.
Sec. 6018.  Use of granular mine tailings.

             TITLE VII--HAZARDOUS MATERIALS TRANSPORTATION

Sec. 7001. Short title.
Sec. 7002. Amendment of title 49, United States Code.

    Subtitle A--General Authorities on Transportation of Hazardous 
                               Materials

Sec. 7101. Findings and purpose.
Sec. 7102. Definitions.
Sec. 7103. General regulatory authority.
Sec. 7104. Limitation on issuance of hazmat licenses.
Sec. 7105. Background checks for drivers hauling hazardous materials.
Sec. 7106. Representation and tampering.
Sec. 7107. Technical amendments.
Sec. 7108. Training of certain employees.
Sec. 7109. Registration.
Sec. 7110. Shipping papers and disclosure.
Sec. 7111. Rail tank cars.
Sec. 7112. Unsatisfactory safety ratings.
Sec. 7113. Training curriculum for the public sector.
Sec. 7114. Planning and training grants; Hazardous Materials Emergency 
              Preparedness Fund.
Sec. 7115. Special permits and exclusions.
Sec. 7116. Uniform forms and procedures.
Sec. 7117. International uniformity of standards and requirements.
Sec. 7118. Administrative authority.
Sec. 7119. Enforcement.
Sec. 7120. Civil penalty.
Sec. 7121. Criminal penalty.
Sec. 7122. Preemption.
Sec. 7123. Judicial review.
Sec. 7124. Relationship to other laws.
Sec. 7125. Authorization of appropriations.
Sec. 7126. References to the Secretary of Transportation.
Sec. 7127. Criminal matters.
Sec. 7128. Additional civil and criminal penalties.
Sec. 7129. Hazardous material transportation plan requirement.
Sec. 7130. Determining amount of undeclared shipments of hazardous 
              materials entering the United States.
Sec. 7131. Hazardous materials research projects.
Sec. 7132. National first responder transportation incident response 
              system.
Sec. 7133. Common carrier pipeline system.

                Subtitle B--Sanitary Food Transportation

Sec. 7201. Short title.
Sec. 7202. Responsibilities of Secretary of Health and Human Services.
Sec. 7203. Department of Transportation requirements.
Sec. 7204. Effective date.

     Subtitle C--Research and Innovative Technology Administration

Sec. 7301. Administrative authority.

      TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE

Sec. 8001. Discretionary spending limits for the highway and mass 
              transit categories.
Sec. 8002. Adjustments to align highway spending with revenues.
Sec. 8003. Level of obligation limitations.
Sec. 8004. Enforcement of guarantee.
Sec. 8005. Transfer of Federal transit administrative expenses.

                     TITLE IX--RAIL TRANSPORTATION

Sec. 9001. High-speed rail corridor development.
Sec. 9002. Capital grants for rail line relocation projects.
Sec. 9003. Rehabilitation and improvement financing.
Sec. 9004. Report regarding impact on public safety of train travel in 
              communities without grade separation.
Sec. 9005. Welded rail and tank car safety improvements.

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Sec. 9006. Alaska Railroad.
Sec. 9007. Study of rail transportation and regulation.
Sec. 9008. Hawaii port infrastructure expansion program.

                   TITLE X--MISCELLANEOUS PROVISIONS

        Subtitle A--Sportfishing and recreational boating safety

Sec. 10101. Short title.

    Chapter 1--Dingell-Johnson Sport Fish Restoration Act amendments

Sec. 10111. Amendment of Dingell-Johnson Sport Fish Restoration Act.
Sec. 10112. Authorization of appropriations.
Sec. 10113. Division of annual appropriations.
Sec. 10114. Maintenance of projects.
Sec. 10115. Boating infrastructure.
Sec. 10116. Requirements and restrictions concerning use of amounts for 
              expenses for Administration.
Sec. 10117. Payments of funds to and cooperation with Puerto Rico, the 
              District of Columbia, Guam, American Samoa, the 
              Commonwealth of the Northern Mariana Islands, and the 
              Virgin Islands.
Sec. 10118. Multistate conservation grant program.
Sec. 10119. Expenditure of remaining balance in Boat Safety Account.

             Chapter 2--Clean Vessel Act of 1992 amendments

Sec. 10131. Grant program.

       Chapter 3--Recreational boating safety program amendments

Sec. 10141. Technical correction.
Sec. 10142. Availability of allocations.
Sec. 10143. Authorization of appropriations for State recreational 
              boating safety programs.

               Subtitle B--Other Miscellaneous Provisions

Sec. 10201.  Notice regarding participation of small business concerns.
Sec. 10202.  Emergency medical services.
Sec. 10203.  Hubzone program.
Sec. 10204. Catastrophic hurricane evacuation plans.
Sec. 10205.  Intermodal transportation facility expansion.
Sec. 10206.  Eligibility to participate in western Alaska community 
              development quota program.
Sec. 10207. Rail rehabilitation and bridge repair.
Sec. 10208. Rented or leased motor vehicles.
Sec. 10209. Midway Island.
Sec. 10210. Demonstration of digital project simulation.
Sec. 10211. Environmental programs.
Sec. 10212. Rescission of unobligated balances.
Sec. 10213. Tribal land.

          Subtitle C--Specific vehicle safety-related rulings

Sec. 10301. Vehicle rollover prevention and crash mitigation.
Sec. 10302. Side-impact crash protection rulemaking.
Sec. 10303. Tire research.
Sec. 10304. Vehicle backover avoidance technology study.
Sec. 10305. Nontraffic incident data collection.
Sec. 10306. Study of safety belt use technologies.
Sec. 10307. Amendment of Automobile Information Disclosure Act.
Sec. 10308. Power window switches.
Sec. 10309. 15-Passenger van safety.
Sec. 10310. Authorization of appropriations.

    TITLE XI--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

Sec. 1100. Amendment of 1986 Code.

                 Subtitle A--Trust fund reauthorization

Sec. 1101. Extension of highway-related taxes and trust funds.
Sec. 1102. Modification of adjustments of apportionments.

            Subtitle B--Excise tax reform and simplification

                      Part 1--Highway excise taxes

Sec. 1111. Modification of gas guzzler tax.
Sec. 1112. Exclusion for tractors weighing 19,500 pounds or less from 
              Federal excise tax on heavy trucks and trailers.
Sec. 1113. Volumetric excise tax credit for alternative fuels.

                      Part 2--Aquatic excise taxes

Sec. 1115. Elimination of Aquatic Resources Trust Fund and 
              transformation of Sport Fish Restoration Account.
Sec. 1116. Repeal of harbor maintenance tax on exports.
Sec. 1117. Cap on excise tax on certain fishing equipment.

                      Part 3--Aerial excise taxes

Sec. 1121. Clarification of excise tax exemptions for agricultural 
              aerial applicators and exemption for Fixed-Wing aircraft 
              engaged in forestry operations.
Sec. 1122. Modification of rural airport definition.
Sec. 1123. Exemption from taxes on transportation provided by 
              seaplanes.
Sec. 1124. Certain sightseeing flights exempt from taxes on air 
              transportation.

                   Part 4--Taxes relating to alcohol

Sec. 1125. Repeal of special occupational taxes on producers and 
              marketers of alcoholic beverages.
Sec. 1126. 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. 1127. Quarterly excise tax filing for small alcohol excise 
              taxpayers.

                       Part 5--Sport excise taxes

Sec. 1131. Custom gunsmiths.

                  Subtitle C--Miscellaneous provisions

Sec. 1141. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 1142. National Surface Transportation Infrastructure Financing 
              Commission.
Sec. 1143. Tax-exempt financing of highway projects and rail-truck 
              transfer facilities.
Sec. 1144. Treasury study of highway fuels used by trucks for non-
              transportation purposes.
Sec. 1145. Diesel fuel tax evasion report.
Sec. 1146. Tax treatment of State ownership of railroad real estate 
              investment trust.
Sec. 1147. Limitation on transfers to the Leaking Underground Storage 
              Tank Trust Fund.

           Subtitle D--Highway-Related technical corrections

Sec. 1151. Highway-related technical corrections.

                   Subtitle E--Preventing fuel fraud

Sec. 1161. Treatment of kerosene for use in aviation.
Sec. 1162. Repeal of ultimate vendor refund claims with respect to 
              farming.
Sec. 1163. Refunds of excise taxes on exempt sales of fuel by credit 
              card.
Sec. 1164. Reregistration in event of change in ownership.
Sec. 1165. Reconciliation of on-loaded cargo to entered cargo.
Sec. 1166. Treatment of deep-draft vessels.
Sec. 1167. Penalty with respect to certain adulterated fuels.

     SEC. 2. GENERAL DEFINITIONS.

       In this Act, the following definitions apply:
       (1) Department.--The term ``Department'' means the 
     Department of Transportation.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
                     TITLE I--FEDERAL-AID HIGHWAYS
                 Subtitle A--Authorization of Programs

     SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Interstate maintenance program.--For the Interstate 
     maintenance program under section 119 of title 23, United 
     States Code--
       (A) $4,883,759,623 for fiscal year 2005;
       (B) $4,960,788,917 for fiscal year 2006;
       (C) $5,039,058,556 for fiscal year 2007;
       (D) $5,118,588,513 for fiscal year 2008; and
       (E) $5,199,399,081 for fiscal year 2009.
       (2) National highway system.--For the National Highway 
     System under section 103 of such title--
       (A) $5,911,200,104 for fiscal year 2005;
       (B) $6,005,256,569 for fiscal year 2006;
       (C) $6,110,827,556 for fiscal year 2007;
       (D) $6,207,937,450 for fiscal year 2008; and
       (E) $6,306,611,031 for fiscal year 2009.
       (3) Bridge program.--For the bridge program under section 
     144 of such title--
       (A) $4,187,708,821 for fiscal year 2005;
       (B) $4,253,530,131 for fiscal year 2006;
       (C) $4,320,411,313 for fiscal year 2007;
       (D) $4,388,369,431 for fiscal year 2008; and
       (E) $4,457,421,829 for fiscal year 2009.
       (4) Surface transportation program.--For the surface 
     transportation program under section 133 of such title--
       (A) $6,860,096,662 for fiscal year 2005;
       (B) $6,269,833,394 for fiscal year 2006;
       (C) $6,370,469,775 for fiscal year 2007;
       (D) $6,472,726,628 for fiscal year 2008; and
       (E) $6,576,630,046 for fiscal year 2009.
       (5) Congestion mitigation and air quality improvement 
     program.--For the congestion mitigation and air quality 
     improvement program under section 149 of such title--
       (A) $1,667,255,304 for fiscal year 2005;
       (B) $1,694,101,866 for fiscal year 2006;
       (C) $1,721,380,718 for fiscal year 2007;
       (D) $1,749,098,821 for fiscal year 2008; and
       (E) $1,777,263,247 for fiscal year 2009.
       (6) Highway safety improvement program.--For the highway 
     safety improvement program under section 148 of such title--
       (A) $1,235,810,000 for fiscal year 2006;
       (B) $1,255,709,322 for fiscal year 2007;
       (C) $1,275,929,067 for fiscal year 2008; and
       (D) $1,296,474,396 for fiscal year 2009.
       (7) Appalachian development highway system program.--For 
     the Appalachian development highway system program under 
     subtitle IV of title 40, United States Code, $470,000,000 for 
     each of fiscal years 2005 through 2009.
       (8) Recreational trails program.--For the recreational 
     trails program under section 206 of title 23, United States 
     Code--
       (A) $60,000,000 for fiscal year 2005;
       (B) $70,000,000 for fiscal year 2006;
       (C) $75,000,000 for fiscal year 2007;
       (D) $80,000,000 for fiscal year 2008; and
       (E) $85,000,000 for fiscal year 2009.
       (9) Federal lands highways program.--
       (A) Indian reservation roads.--For Indian reservation roads 
     under section 204 of such title--
       (i) $300,000,000 for fiscal year 2005;
       (ii) $330,000,000 for fiscal year 2006;
       (iii) $370,000,000 for fiscal year 2007;
       (iv) 410,000,000 for fiscal year 2008; and
       (v) $450,000,000 for fiscal year 2009.
       (B) Park roads and parkways.--
       (i) In general.--For park roads and parkways under section 
     204 of such title--

       (I) $180,000,000 for fiscal year 2005;
       (II) $195,000,000 for fiscal year 2006;
       (III) $210,000,000 for fiscal year 2007;
       (IV) $225,000,000 for fiscal year 2008; and

[[Page H7047]]

       (V) $240,000,000 for fiscal year 2009.

       (ii) Minimum allocation to certain states.--A State 
     containing more than 50 percent of the total acreage of the 
     National Park System shall receive not less than 3 percent of 
     any funds appropriated under this subparagraph.
       (C) Refuge roads.--For refuge roads under section 204 of 
     such title, $29,000,000 for each of fiscal years 2005 through 
     2009.
       (D) Public lands highways.--For Federal lands highways 
     under section 204 of such title--
       (i) $260,000,000 for fiscal year 2005;
       (ii) $280,000,000 for fiscal year 2006;
       (iii) $280,000,000 for fiscal year 2007;
       (iv) $290,000,000 for fiscal year 2008; and
       (v) $300,000,000 for fiscal year 2009.
       (10) National corridor infrastructure improvement 
     program.--For the national corridor infrastructure 
     improvement program under section 1302 of this Act--
       (A) $194,800,000 for fiscal year 2005;
       (B) $389,600,000 for fiscal year 2006;
       (C) $487,000,000 for fiscal year 2007;
       (D) $487,000,000 for fiscal year 2008; and
       (E) $389,600,000 for fiscal year 2009.
       (11) Coordinated border infrastructure program.--For the 
     coordinated border infrastructure program under section 1303 
     of this Act--
       (A) $123,000,000 for fiscal year 2005;
       (B) $145,000,000 for fiscal year 2006;
       (C) $165,000,000 for fiscal year 2007;
       (D) $190,000,000 for fiscal year 2008; and
       (E) $210,000,000 for fiscal year 2009.
       (12) National scenic byways program.--For the national 
     scenic byways program under section 162 of such title--
       (A) $26,500,000 for fiscal year 2005;
       (B) $30,000,000 for fiscal year 2006;
       (C) $35,000,000 for fiscal year 2007;
       (D) $40,000,000 for fiscal year 2008; and
       (E) $43,500,000 for fiscal year 2009.
       (13) Construction of ferry boats and ferry terminal 
     facilities.--For construction of ferry boats and ferry 
     terminal facilities under section 147 of such title--
       (A) $38,000,000 for fiscal year 2005;
       (B) $55,000,000 for fiscal year 2006;
       (C) $60,000,000 for fiscal year 2007;
       (D) $65,000,000 for fiscal year 2008; and
       (E) $67,000,000 for fiscal year 2009.
       (14) Puerto rico highway program.--For the Puerto Rico 
     highway program under section 165 of such title--
       (A) $115,000,000 for fiscal year 2005;
       (B) $120,000,000 for fiscal year 2006;
       (C) $135,000,000 for fiscal year 2007;
       (D) $145,000,000 for fiscal year 2008; and
       (E) $150,000,000 for fiscal year 2009.
       (15) Projects of national and regional significance 
     program.--For the projects of national and regional 
     significance program under section 1301 of this Act--
       (A) $177,900,000 for fiscal year 2005;
       (B) $355,800,000 for fiscal year 2006;
       (C) $444,750,000 for fiscal year 2007;
       (D) $444,750,000 for fiscal year 2008; and
       (E) $355,800,000 for fiscal year 2009.
       (16) High priority projects program.--For the high priority 
     projects program under section 117 of title 23, United States 
     Code, $2,966,400,000 for each of fiscal years 2005 through 
     2009.
       (17) Safe routes to school program.--For the safe routes to 
     school program under section 1404 of this Act--
       (A) $54,000,000 for fiscal year 2005;
       (B) $100,000,000 for fiscal year 2006;
       (C) $125,000,000 for fiscal year 2007;
       (D) $150,000,000 for fiscal year 2008; and
       (E) $183,000,000 for fiscal year 2009.
       (18) Deployment of magnetic levitation transportation 
     projects.--For the deployment of magnetic levitation projects 
     under section 1307 of this Act--
       (A) $15,000,000 for each of fiscal years 2006 and 2007; and
       (B) $30,000,000 for each of fiscal years 2008 and 2009.
       (19) National corridor planning and development and 
     coordinated border infrastructure programs.--For the national 
     corridor planning and development and coordinated border 
     infrastructure programs under sections 1118 and 1119 of the 
     Transportation Equity Act for the 21st Century (112 Stat. 
     161, 163) $140,000,000 for fiscal year 2005.
       (20) Highways for life.--For the Highways for LIFE Program 
     under section 1502 of this Act--
       (A) $15,000,000 for fiscal year 2006; and
       (B) $20,000,000 for each of fiscal years 2007 through 2009.
       (21) Highway use tax evasion projects.--For highway use tax 
     evasion projects under section 1115 of this Act--
       (A) $5,000,000 for fiscal year 2005;
       (B) $44,800,000 for fiscal year 2006;
       (C) $53,300,000 for fiscal year 2007; and
       (D) $12,000,000 for each of fiscal years 2008 and 2009.
       (b) Disadvantaged Business Enterprises.--
       (1) Definitions.--In this subsection, the following 
     definitions apply:
       (A) Small business concern.--The term ``small business 
     concern'' has the meaning that term has under section 3 of 
     the Small Business Act (15 U.S.C. 632), except that the term 
     shall not include any concern or group of concerns controlled 
     by the same socially and economically disadvantaged 
     individual or individuals which has average annual gross 
     receipts over the preceding 3 fiscal years in excess of 
     $19,570,000, as adjusted annually by the Secretary for 
     inflation.
       (B) Socially and economically disadvantaged individuals.--
     The term ``socially and economically disadvantaged 
     individuals'' has the meaning that term has under section 
     8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
     relevant subcontracting regulations issued pursuant to that 
     Act, except that women shall be presumed to be socially and 
     economically disadvantaged individuals for purposes of this 
     subsection.
       (2) General rule.--Except to the extent that the Secretary 
     determines otherwise, not less than 10 percent of the amounts 
     made available for any program under titles I, III, and V of 
     this Act and section 403 of title 23, United States Code, 
     shall be expended through small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals.
       (3) Annual listing of disadvantaged business enterprises.--
     Each State shall annually--
       (A) survey and compile a list of the small business 
     concerns referred to in paragraph (1) and the location of the 
     concerns in the State; and
       (B) notify the Secretary, in writing, of the percentage of 
     the concerns that are controlled by women, by socially and 
     economically disadvantaged individuals (other than women), 
     and by individuals who are women and are otherwise socially 
     and economically disadvantaged individuals.
       (4) Uniform certification.--The Secretary shall establish 
     minimum uniform criteria for State governments to use in 
     certifying whether a concern qualifies for purposes of this 
     subsection. The minimum uniform criteria shall include, but 
     not be limited to, on-site visits, personal interviews, 
     licenses, analysis of stock ownership, listing of equipment, 
     analysis of bonding capacity, listing of work completed, 
     resume of principal owners, financial capacity, and type of 
     work preferred.
       (5) Compliance with court orders.--Nothing in this 
     subsection limits the eligibility of an entity or person to 
     receive funds made available under titles I, III, and V of 
     this Act and section 403 of title 23, United States Code, if 
     the entity or person is prevented, in whole or in part, from 
     complying with paragraph (1) because a Federal court issues a 
     final order in which the court finds that the requirement of 
     paragraph (1), or the program established under paragraph 
     (1), is unconstitutional.

     SEC. 1102. OBLIGATION CEILING.

       (a) General Limitation.--Subject to subsections (g) and 
     (h), and notwithstanding any other provision of law, the 
     obligations for Federal-aid highway and highway safety 
     construction programs shall not exceed--
       (1) $34,422,400,000 for fiscal year 2005;
       (2) $36,032,343,903 for fiscal year 2006;
       (3) $38,244,210,516 for fiscal year 2007;
       (4) $39,585,075,404 for fiscal year 2008; and
       (5) $41,199,970,178 for fiscal year 2009.
       (b) Exceptions.--The limitations under subsection (a) shall 
     not apply to obligations under or for--
       (1) section 125 of title 23, United States Code;
       (2) section 147 of the Surface Transportation Assistance 
     Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
       (3) section 9 of the Federal-Aid Highway Act of 1981 
     (Public Law 97-134; 95 Stat. 1701);
       (4) subsections (b) and (j) of section 131 of the Surface 
     Transportation Assistance Act of 1982 (Public Law 97-424; 96 
     Stat. 2119);
       (5) subsections (b) and (c) of section 149 of the Surface 
     Transportation and Uniform Relocation Assistance Act of 1987 
     (Public Law 100-17; 101 Stat. 198);
       (6) sections 1103 through 1108 of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240; 
     105 Stat. 2027);
       (7) section 157 of title 23, United States Code (as in 
     effect on June 8, 1998);
       (8) section 105 of title 23, United States Code (as in 
     effect for fiscal years 1998 through 2004, but only in an 
     amount equal to $639,000,000 for each of those fiscal years);
       (9) Federal-aid highway programs for which obligation 
     authority was made available under the Transportation Equity 
     Act for the 21st Century (Public Law 105-178; 112 Stat. 107) 
     or subsequent public laws for multiple years or to remain 
     available until used, but only to the extent that the 
     obligation authority has not lapsed or been used;
       (10) section 105 of title 23, United States Code (but, for 
     each of fiscal years 2005 through 2009, only in an amount 
     equal to $639,000,000 per fiscal year); and
       (11) section 1603 of this Act, to the extent that funds 
     obligated in accordance with that section were not subject to 
     a limitation on obligations at the time at which the funds 
     were initially made available for obligation.
       (c) Distribution of Obligation Authority.--For each of 
     fiscal years 2005 through 2009, the Secretary--
       (1) shall not distribute obligation authority provided by 
     subsection (a) for the fiscal year for--
       (A) amounts authorized for administrative expenses and 
     programs by section 104(a) of title 23, United States Code;
       (B) programs funded from the administrative takedown 
     authorized by section 104(a)(1) of title 23, United States 
     Code (as in effect on the date before the date of enactment 
     of this Act); and
       (C) amounts authorized for the highway use tax evasion 
     program and the Bureau of Transportation Statistics;
       (2) shall not distribute an amount of obligation authority 
     provided by subsection (a) that is equal to the unobligated 
     balance of amounts made available from the Highway Trust Fund 
     (other than the Mass Transit Account) for Federal-aid highway 
     and highway safety programs for previous fiscal years the 
     funds for which are allocated by the Secretary;
       (3) shall determine the ratio that--
       (A) the obligation authority provided by subsection (a) for 
     the fiscal year, less the aggregate of amounts not 
     distributed under paragraphs (1) and (2); bears to
       (B) the total of the sums authorized to be appropriated for 
     the Federal-aid highway and highway safety construction 
     programs (other than sums authorized to be appropriated for 
     provisions of law described in paragraphs (1) through (9) of 
     subsection (b) and sums authorized to be appropriated for 
     section 105 of title 23,

[[Page H7048]]

     United States Code, equal to the amount referred to in 
     subsection (b)(10) for the fiscal year), less the aggregate 
     of the amounts not distributed under paragraphs (1) and (2);
       (4)(A) shall distribute the obligation authority provided 
     by subsection (a) less the aggregate amounts not distributed 
     under paragraphs (1) and (2), for sections 1301, 1302, and 
     1934 of this Act, sections 117 but individual for each of 
     project numbered 1 through 3676 listed in the table contained 
     in section 1702 of this Act and 144(g) of title 23, United 
     States Code, and section 14501 of title 40, United States 
     Code, and, during fiscal year 2005, amounts for programs, 
     projects, and activities authorized by section 117 of title I 
     of division H of the Consolidated Appropriations Act, 2005 
     (Public Law 108-447; 118 Stat. 3212), so that the amount of 
     obligation authority available for each of such sections is 
     equal to the amount determined by multiplying--
       (i) the ratio determined under paragraph (3); by
       (ii) the sums authorized to be appropriated for that 
     section for the fiscal year; and
       (B) shall distribute $2,000,000,000 for section 105 of 
     title 23, United States Code;
       (5) shall distribute among the States the obligation 
     authority provided by subsection (a), less the aggregate 
     amounts not distributed under paragraphs (1) and (2), for 
     each of the programs that are allocated by the Secretary 
     under this Act and title 23, United States Code (other than 
     to programs to which paragraph (1) applies), by multiplying--
       (A) the ratio determined under paragraph (3); by
       (B) the amounts authorized to be appropriated for each such 
     program for the fiscal year; and
       (6) shall distribute the obligation authority provided by 
     subsection (a), less the aggregate amounts not distributed 
     under paragraphs (1) and (2) and the amounts distributed 
     under paragraphs (4) and (5), for Federal-aid highway and 
     highway safety construction programs (other than the amounts 
     apportioned for the equity bonus program, but only to the 
     extent that the amounts apportioned for the equity bonus 
     program for the fiscal year are greater than $2,639,000,000, 
     and the Appalachian development highway system program) that 
     are apportioned by the Secretary under this Act and title 23, 
     United States Code, in the ratio that--
       (A) amounts authorized to be appropriated for the programs 
     that are apportioned to each State for the fiscal year; bear 
     to
       (B) the total of the amounts authorized to be appropriated 
     for the programs that are apportioned to all States for the 
     fiscal year.
       (d) Redistribution of Unused Obligation Authority.--
     Notwithstanding subsection (c), the Secretary shall, after 
     August 1 of each of fiscal years 2005 through 2009--
       (1) revise a distribution of the obligation authority made 
     available under subsection (c) if an amount distributed 
     cannot be obligated during that fiscal year; and
       (2) redistribute sufficient amounts to those States able to 
     obligate amounts in addition to those previously distributed 
     during that fiscal year, giving priority to those States 
     having large unobligated balances of funds apportioned under 
     sections 104 and 144 of title 23, United States Code.
       (e) Applicability of Obligation Limitations to 
     Transportation Research Programs.--
       (1) In general.--Except as provided in paragraph (2), 
     obligation limitations imposed by subsection (a) shall apply 
     to contract authority for transportation research programs 
     carried out under--
       (A) chapter 5 of title 23, United States Code; and
       (B) title V (research title) of this Act.
       (2) Exception.--Obligation authority made available under 
     paragraph (1) shall--
       (A) remain available for a period of 3 fiscal years; and
       (B) be in addition to the amount of any limitation imposed 
     on obligations for Federal-aid highway and highway safety 
     construction programs for future fiscal years.
       (f) Redistribution of Certain Authorized Funds.--
       (1) In general.--Not later than 30 days after the date of 
     distribution of obligation authority under subsection (c) for 
     each of fiscal years 2005 through 2009, the Secretary shall 
     distribute to the States any funds that--
       (A) are authorized to be appropriated for the fiscal year 
     for Federal-aid highway programs; and
       (B) the Secretary determines will not be allocated to the 
     States, and will not be available for obligation, in the 
     fiscal year due to the imposition of any obligation 
     limitation for the fiscal year.
       (2) Ratio.--Funds shall be distributed under paragraph (1) 
     in the same ratio as the distribution of obligation authority 
     under subsection (c)(6).
       (3) Availability.--Funds distributed under paragraph (1) 
     shall be available for any purpose described in section 
     133(b) of title 23, United States Code.
       (g) Special Limitation Characteristics.--Obligation 
     authority distributed for a fiscal year under subsection 
     (c)(4) for the provision specified in subsection (c)(4) 
     shall--
       (1) remain available until used for obligation of funds for 
     that provision; and
       (2) be in addition to the amount of any limitation imposed 
     on obligations for Federal-aid highway and highway safety 
     construction programs for future fiscal years.
       (h) Adjustment in Obligation Limit.--
       (1) In general.--Subject to the last sentence of section 
     110(a)(2) of title 23, United States Code, a limitation on 
     obligations imposed by subsection (a) for a fiscal year shall 
     be adjusted by an amount equal to the amount determined in 
     accordance with section 251(b)(1)(B) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     901(b)(1)(B)) for the fiscal year.
       (2) Distribution.--An adjustment under paragraph (1) shall 
     be distributed in accordance with this section.
       (i) Special Rule for Fiscal Year 2005.--
       (1) In general.--Obligation authority distributed under 
     subsection (c)(4) for fiscal year 2005 for sections 1301, 
     1302, and 1934 of this Act and sections 117 and 144(g) of 
     title 23, United States Code, may be used in fiscal year 2005 
     for purposes of obligation authority distributed under 
     subsection (c)(6).
       (2) Restoration.--Obligation authority used as described in 
     paragraph (1) shall be restored to the original purpose on 
     the date on which obligation authority is distributed under 
     this section for fiscal year 2006.
       (j) High Priority Project Flexibility.--
       (1) In general.--Subject to paragraph (2), obligation 
     authority distributed for a fiscal year under subsection 
     (c)(4) for each project numbered 1 through 3676 listed in the 
     table contained in section 1702 of this Act may be obligated 
     for any other project in such section in the same State.
       (2) Restoration.--Obligation authority used as described in 
     paragraph (1) shall be restored to the original purpose on 
     the date on which obligation authority is distributed under 
     this section for the next fiscal year following obligation 
     under paragraph (1).
       (k) Limitation on Statutory Construction.--Nothing in this 
     section shall be construed to limit the distribution of 
     obligation authority under subsection (c)(4)(A) for each of 
     the individual projects numbered greater than 3676 listed in 
     the table contained in section 1702 of this Act.

     SEC. 1103. APPORTIONMENTS.

       (a) Administrative Expenses.--
       (1) In general.--Section 104(a) of title 23, United States 
     Code, is amended to read as follows:
       ``(a) Administrative Expenses.--
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to be made available to the Secretary for 
     administrative expenses of the Federal Highway 
     Administration--
       ``(A) $353,024,000 for fiscal year 2005;
       ``(B) $370,613,540 for fiscal year 2006;
       ``(C) $389,079,500 for fiscal year 2007;
       ``(D) $408,465,500 for fiscal year 2008; and
       ``(E) $423,717,460 for fiscal year 2009.
       ``(2) Purposes.--The funds authorized by this subsection 
     shall be used--
       ``(A) to administer the provisions of law to be financed 
     from appropriations for the Federal-aid highway program and 
     programs authorized under chapter 2; and
       ``(B) to make transfers of such sums as the Secretary 
     determines to be appropriate to the Appalachian Regional 
     Commission for administrative activities associated with the 
     Appalachian development highway system.
       ``(3) Availability.--The funds made available under 
     paragraph (1) shall remain available until expended.''.
       (2) Conforming amendments.--Section 104 of such title is 
     amended--
       (A) in the matter preceding paragraph (1) of subsection (b) 
     by striking ``the deduction authorized by subsection (a) and 
     the set-aside authorized by subsection (f)'' and inserting 
     ``the set-asides authorized by subsections (d) and (f) and 
     section 130(e)'';
       (B) in the first sentence of subsection (e)(1) by striking 
     ``, and also'' and all that follows through ``this section''; 
     and
       (C) in subsection (i) by striking ``deducted'' and 
     inserting ``made available''.
       (b) Alaska Highway.--Section 104(b)(1)(A) of such title is 
     amended by striking ``$18,800,000 for each of fiscal years 
     1998 through 2002'' and inserting ``$30,000,000 for each of 
     fiscal years 2005 through 2009''.
       (c) National Highway System Component.--Section 
     104(b)(1)(A) of such title is amended by striking 
     ``$36,400,000 for each fiscal year'' and inserting 
     ``$40,000,000 for each of fiscal years 2005 and 2006 and 
     $50,000,000 for each of fiscal years 2007 through 2009''.
       (d)  CMAQ Apportionment.--Section 104(b)(2) of such title 
     is amended--
       (1) in subparagraph (B)--
       (A) by striking clause (i) and inserting the following:
       ``(i) 1.0 if, at the time of apportionment, the area is a 
     maintenance area;'';
       (B) by striking ``or'' at the end of clause (vi);
       (C) by striking the period at the end of clause (vii) and 
     inserting ``; or''; and
       (D) by adding at the end the following:
       ``(viii) 1.0 if, at the time of apportionment, an area is 
     designated as nonattainment for ozone under subpart 1 of part 
     D of title I of such Act (42 U.S.C. 7512 et seq.).''; and
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Additional adjustment for carbon monoxide areas.--If, 
     in addition to being designated as a nonattainment or 
     maintenance area for ozone as described in section 149(b), 
     any county within the area was also classified under subpart 
     3 of part D of title I of the Clean Air Act (42 U.S.C. 7512 
     et seq.) as a nonattainment or maintenance area described in 
     section 149(b) for carbon monoxide, the weighted 
     nonattainment or maintenance area population of the county, 
     as determined under clauses (i) through (vi) or clause (viii) 
     of subparagraph (B), shall be further multiplied by a factor 
     of 1.2.''.
       (e) Report.--Section 104(j) of such title is amended by 
     striking ``submit to Congress a report'' and inserting 
     ``submit to Congress a report, and also make such report 
     available to the public in a user-friendly format via the 
     Internet,''.
       (f) Operation Lifesaver.--Section 104(d) of such title is 
     amended--

[[Page H7049]]

       (1) by striking paragraph (1) and all that follows through 
     the period at the end of paragraph (2)(A) and inserting the 
     following:
       ``(1) Operation lifesaver.--To carry out a public 
     information and education program to help prevent and reduce 
     motor vehicle accidents, injuries, and fatalities and to 
     improve driver performance at railway-highway crossings--
       ``(A) before making an apportionment under subsection 
     (b)(3) for fiscal year 2005, the Secretary shall set aside 
     $560,000 for such fiscal year; and
       ``(B) there is authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) 
     $560,000 for each of fiscal years 2006 through 2009.
       ``(2) Railway-highway crossing hazard elimination in high 
     speed rail corridors.--
       ``(A) Funding.--To carry out the elimination of hazards at 
     railway-highway crossings--
       ``(i) before making an apportionment under subsection 
     (b)(3) for fiscal year 2005, the Secretary shall set aside 
     $5,250,000 for such fiscal year; and
       ``(ii) there is authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) 
     $7,250,000 for fiscal year 2006, $10,000,000 for fiscal year 
     2007, $12,500,000 for fiscal year 2008, and $15,000,000 for 
     fiscal year 2009.''; and
       (2) in paragraph (2)(E)--
       (A) by striking ``Not less than $250,000 of such set-
     aside'' and inserting ``Of such set-aside, not less than 
     $250,000 for fiscal year 2005, $1,000,000 for fiscal year 
     2006, $1,750,000 for fiscal year 2007, $2,250,000 for fiscal 
     year 2008, and $3,000,000 for fiscal year 2009''; and
       (B) by striking ``per fiscal year''.

     SEC. 1104. EQUITY BONUS PROGRAM.

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

     ``Sec. 105. Equity bonus program

       ``(a) Program.--
       ``(1) In general.--Subject to subsections (c) and (d), for 
     each of fiscal years 2005 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 highway bridge replacement and rehabilitation 
     program under section 144;
       ``(D) the surface transportation program under section 133;
       ``(E) the highway safety improvement program under section 
     148;
       ``(F) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(G) metropolitan planning programs under section 104(f);
       ``(H) the high priority projects program under section 117;
       ``(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 school program under section 1404 
     of the SAFETEA-LU;
       ``(M) the rail-highway grade crossing program under section 
     130; and
       ``(N) the coordinated border infrastructure program under 
     section 1303 of the SAFETEA-LU.
       ``(b) State Percentage.--
       ``(1) In general.--The percentage referred to in subsection 
     (a) for each State shall be--
       ``(A) for each of fiscal years 2005 and 2006, 90.5 percent, 
     for fiscal year 2007, 91.5 percent, and for each of fiscal 
     years 2008 and 2009, 92 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 40 persons per square mile (as reported in the decennial 
     census conducted by the Federal Government in 2000) and of 
     which at least 1.25 percent of the total acreage is under 
     Federal jurisdiction, based on the report of the General 
     Services Administration entitled `Federal Real Property 
     Profile' and dated September 30, 2004, a State with a total 
     population of less than 1,000,000 (as reported in that 
     decennial census), a State with a median household income of 
     less than $35,000 (as reported in that decennial census), a 
     State with a fatality rate during 2002 on Interstate highways 
     that is greater than 1 fatality for each 100,000,000 vehicle 
     miles traveled on Interstate highways, or a State with an 
     indexed, State motor fuels excise tax rate higher than 150 
     percent of the Federal motor fuels excise tax rate as of the 
     date of enactment of the SAFETEA-LU, the greater of--
       ``(i) the applicable percentage under subparagraph (A); 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 SAFETEA-LU)--
       ``(A) the Interstate maintenance program under section 119;
       ``(B) the national highway system program under section 
     103;
       ``(C) the highway bridge replacement and rehabilitation 
     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 the 
     following percentages of the average for fiscal years 1998 
     through 2003 of the annual apportionments for the State for 
     all programs specified in subsection (b)(2):
       ``(A) For fiscal year 2005, 117 percent.
       ``(B) For fiscal year 2006, 118 percent.
       ``(C) For fiscal year 2007, 119 percent.
       ``(D) For fiscal year 2008, 120 percent.
       ``(E) For fiscal year 2009, 121 percent.
       ``(2) No negative adjustment.--No negative adjustment shall 
     be made under subsection (a)(1) to the apportionment of any 
     State.
       ``(d) Treatment of Funds.--
       ``(1) Programmatic distribution.--The Secretary shall 
     apportion the amounts made available under this section that 
     exceed $2,639,000,000 so that the amount apportioned to each 
     State under this paragraph for each program referred to in 
     subparagraphs (A) through (F) of subsection (a)(2) 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 subparagraphs (A) through (F) of 
     subsection (a)(2) for a fiscal year; bears to
       ``(B) the total amount of funds apportioned to such State 
     for all such programs for such fiscal year.
       ``(2) Remaining distribution.--The Secretary shall 
     administer the remainder of funds made available under this 
     section to the States in accordance with section 104(b)(3), 
     except that paragraphs (1) through (3) of section 133(d) 
     shall not apply to amounts administered pursuant to this 
     paragraph.
       ``(e) Metro Planning Set Aside.--Notwithstanding section 
     104(f), no set aside provided for under that section shall 
     apply to funds allocated under this section.
       ``(f) 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 
     2005 through 2009.''.
       (b) Clerical Amendment.--The analysis for subchapter I of 
     chapter 1 of such title is amended by striking the item 
     relating to section 105 and inserting the following:

``105. Equity bonus program.''.

     SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

       (a) Allocation.--Section 110(a)(1) of title 23, United 
     States Code, is amended--
       (1) by striking ``2000'' and inserting ``2007'';
       (2) by inserting after ``such fiscal year'' the first place 
     it appears: ``and the succeeding fiscal year''.
       (b) Reduction.--Section 110(a)(2) of such title is 
     amended--
       (1) by striking ``2000'' and inserting ``2007'';
       (2) by striking ``October 1 of the succeeding'' and 
     inserting ``October 15 of such'';
       (3) by inserting after ``Account)'' the following: ``for 
     such fiscal year and the succeeding fiscal year''; and
       (4) by adding at the end the following: ``No reduction 
     under this paragraph and no reduction under section 1102(h), 
     and no reduction under title VIII or any amendment made by 
     title VIII, of the SAFETEA-LU shall be made for a fiscal year 
     if, as of October 1 of such fiscal year the balance in the 
     Highway Trust Fund (other than the Mass Transit Account) 
     exceeds $6,000,000,000.''.
       (c) General Distribution.--Section 110(b)(1)(A) of such 
     title is amended--
       (1) by striking ``minimum guarantee'' and inserting 
     ``equity bonus''; and
       (2) by striking ``Transportation Equity Act for the 21st 
     Century'' and inserting ``SAFETEA-LU''.
       (d) Addition of Highway Safety Improvement Program.--
     Section 110(c) of such title is amended by inserting ``the 
     highway safety improvement program,'' after ``the surface 
     transportation program,''.
       (e) Technical Amendment.--Section 110(b)(1)(A) of such 
     title is amended by striking ``for'' the second place it 
     appears.
       (f) Special Rule.--If the amount available pursuant to 
     section 110 of title 23, United States Code, for fiscal year 
     2007 is greater than zero, the Secretary shall--
       (1) determine the total amount necessary to increase each 
     State's rate of return (as determined under section 
     105(b)(1)(A) of title 23, United States Code) to 92 percent, 
     excluding amounts provided under this paragraph;
       (2) allocate to each State the lesser of--
       (A) the amount computed for that State under paragraph (1); 
     or

[[Page H7050]]

       (B) an amount determined by multiplying the total amount 
     calculated under section 110 of title 23, United States Code, 
     for fiscal year 2007 by the ratio that--
       (i) the amount determined for such State under paragraph 
     (1); bears to
       (ii) the total amount computed for all States in paragraph 
     (1); and
       (3) allocate amounts remaining in excess of the amounts 
     allocated in paragraph (2) to all States in accordance with 
     section 110 of title 23, United States Code.

     SEC. 1106. FUTURE INTERSTATE SYSTEM ROUTES.

       (a) Extension of Date.--Section 103(c)(4)(B)(ii) of title 
     23, United States Code, is amended by striking ``12'' and 
     inserting ``25''.
       (b) Removal of Designation.--Section 103(c)(4)(B)(iii) of 
     such title is amended--
       (1) in subclause (I) by striking ``in the agreement between 
     the Secretary and the State or States''; and
       (2) by adding at the end the following:

       ``(III) Existing agreements.--An agreement described in 
     clause (ii) that is entered into before the date of enactment 
     of this subclause shall be deemed to include the 25-year time 
     limitation described in that clause, regardless of any 
     earlier construction completion date in the agreement.''.

     SEC. 1107. METROPOLITAN PLANNING.

       Section 104(f) of title 23, United States Code, is 
     amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Set-aside.--On October 1 of each fiscal year, the 
     Secretary shall set aside 1.25 percent of the funds 
     authorized to be appropriated for the Interstate maintenance, 
     national highway system, surface transportation, congestion 
     mitigation and air quality improvement, and highway bridge 
     replacement and rehabilitation programs authorized under this 
     title to carry out the requirements of section 134.'';
       (2) in paragraph (2) by striking ``per centum'' and 
     inserting ``percent'';
       (3) in paragraph (3)--
       (A) by striking ``The funds'' and inserting the following:
       ``(A) In general.--The funds''; and
       (B) by striking ``These funds'' and all that follows and 
     inserting the following:
       ``(B) Unused funds.--Any funds that are not used to carry 
     out section 134 may be made available by a metropolitan 
     planning organization to the State to fund activities under 
     section 135.''; and
       (4) in paragraph (4)--
       (A) by striking ``The distribution'' and inserting the 
     following:
       ``(A) In general.--The distribution''; and
       (B) by adding at the end the following:
       ``(B) Reimbursement.--Not later than 30 days after the date 
     of receipt by a State of a request for reimbursement of 
     expenditures made by a metropolitan planning organization for 
     carrying out section 134, the State shall reimburse, from 
     funds distributed under this paragraph to the metropolitan 
     planning organization by the State, the metropolitan planning 
     organization for those expenditures.''.

     SEC. 1108. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

       Section 104(k) of title 23, United States Code, is amended 
     to read as follows:
       ``(k) Transfer of Highway and Transit Funds.--
       ``(1) Transfer of highway funds for transit projects.--
       ``(A) In general.--Subject to subparagraph (B), funds made 
     available for transit projects or transportation planning 
     under this title may be transferred to and administered by 
     the Secretary in accordance with chapter 53 of title 49.
       ``(B) Non-federal share.--The provisions of this title 
     relating to the non-Federal share shall apply to the funds 
     transferred under subparagraph (A).
       ``(2) Transfer of transit funds for highway projects.--
       ``(A) In general.--Subject to subparagraph (B), funds made 
     available for highway projects or transportation planning 
     under chapter 53 of title 49 may be transferred to and 
     administered by the Secretary in accordance with this title.
       ``(B) Non-federal share.--The provisions of chapter 53 of 
     title 49 relating to the non-Federal share shall apply to 
     funds transferred under subparagraph (A).
       ``(3) Transfer of funds among states or to federal highway 
     administration.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     the Secretary may, at the request of a State, transfer funds 
     apportioned or allocated under this title to the State to 
     another State, or to the Federal Highway Administration, for 
     the purpose of funding 1 or more projects that are eligible 
     for assistance with funds so apportioned or allocated.
       ``(B) Apportionment.--The transfer shall have no effect on 
     any apportionment of funds to a State under this section or 
     section 105 or 144.
       ``(C) Surface transportation program.--Funds that are 
     apportioned or allocated to a State under subsection (b)(3) 
     and attributed to an urbanized area of a State with a 
     population of over 200,000 individuals under section 
     133(d)(3) may be transferred under this paragraph only if the 
     metropolitan planning organization designated for the area 
     concurs, in writing, with the transfer request.
       ``(4) Transfer of obligation authority.--Obligation 
     authority for funds transferred under this subsection shall 
     be transferred in the same manner and amount as the funds for 
     the projects that are transferred under this subsection.''.

     SEC. 1109. RECREATIONAL TRAILS.

       (a) Recreational Trails Program Formula.--Section 104(h) of 
     title 23, United States Code, is amended--
       (1) in paragraph (1) by striking the first sentence and 
     inserting the following: ``Before apportioning sums 
     authorized to be appropriated to carry out the recreational 
     trails program under section 206, the Secretary shall deduct 
     for administrative, research, technical assistance, and 
     training expenses for such program $840,000 for each of 
     fiscal years 2005 through 2009.''; and
       (2) in paragraph (2) by striking ``After'' and all that 
     follows through ``remainder of the sums'' and inserting ``The 
     Secretary shall apportion the sums''.
       (b) Permissible Uses.--Section 206(d)(2) of such title is 
     amended to read as follows:
       ``(2) Permissible uses.--Permissible uses of funds 
     apportioned to a State for a fiscal year to carry out this 
     section include--
       ``(A) maintenance and restoration of existing recreational 
     trails;
       ``(B) development and rehabilitation of trailside and 
     trailhead facilities and trail linkages for recreational 
     trails;
       ``(C) purchase and lease of recreational trail construction 
     and maintenance equipment;
       ``(D) construction of new recreational trails, except that, 
     in the case of new recreational trails crossing Federal 
     lands, construction of the trails shall be--
       ``(i) permissible under other law;
       ``(ii) necessary and recommended by a statewide 
     comprehensive outdoor recreation plan that is required by the 
     Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
     4 et seq.) and that is in effect;
       ``(iii) approved by the administering agency of the State 
     designated under subsection (c)(1); and
       ``(iv) approved by each Federal agency having jurisdiction 
     over the affected lands under such terms and conditions as 
     the head of the Federal agency determines to be appropriate, 
     except that the approval shall be contingent on compliance by 
     the Federal agency with all applicable laws, including the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), the Forest and Rangeland Renewable Resources Planning 
     Act of 1974 (16 U.S.C. 1600 et seq.), and the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.);
       ``(E) acquisition of easements and fee simple title to 
     property for recreational trails or recreational trail 
     corridors;
       ``(F) assessment of trail conditions for accessibility and 
     maintenance;
       ``(G) development and dissemination of publications and 
     operation of educational programs to promote safety and 
     environmental protection, (as those objectives relate to 1 or 
     more of the use of recreational trails, supporting non-law 
     enforcement trail safety and trail use monitoring patrol 
     programs, and providing trail-related training), but in an 
     amount not to exceed 5 percent of the apportionment made to 
     the State for the fiscal year; and
       ``(H) payment of costs to the State incurred in 
     administering the program, but in an amount not to exceed 7 
     percent of the apportionment made to the State for the fiscal 
     year.''.
       (c) Use of Apportionments.--Section 206(d)(3) of such title 
     is amended--
       (1) by striking subparagraph (C);
       (2) by redesignating subparagraph (D) as subparagraph (C); 
     and
       (3) in subparagraph (C) (as so redesignated) by striking 
     ``(2)(F)'' and inserting ``(2)(H)''.
       (d) Federal Share.--Section 206(f) of such title is 
     amended--
       (1) in paragraph (1)--
       (A) by inserting ``and the Federal share of the 
     administrative costs of a State'' after ``project''; and
       (B) by striking ``not exceed 80 percent'' and inserting 
     ``be determined in accordance with section 120(b)'';
       (2) in paragraph (2)(A) by striking ``80 percent of'' and 
     inserting ``the amount determined in accordance with section 
     120(b) for'';
       (3) in paragraph (2)(B) by inserting ``sponsoring the 
     project'' after ``Federal agency'';
       (4) by striking paragraph (5);
       (5) by redesignating paragraph (4) as paragraph (5);
       (6) in paragraph (5) (as so redesignated) by striking ``80 
     percent'' and inserting ``the Federal share as determined in 
     accordance with section 120(b)''; and
       (7) by inserting after paragraph (3) the following:
       ``(4) Use of recreational trails program funds to match 
     other federal program funds.--Notwithstanding any other 
     provision of law, funds made available under this section may 
     be used toward the non-Federal matching share for other 
     Federal program funds that are--
       ``(A) expended in accordance with the requirements of the 
     Federal program relating to activities funded and populations 
     served; and
       ``(B) expended on a project that is eligible for assistance 
     under this section.''.
       (e) Planning and Environmental Assessment Costs Incurred 
     Prior to Project Approval.--Section 206(h)(1) of such title 
     is amended by adding at the end the following:
       ``(C) Planning and environmental assessment costs incurred 
     prior to project approval.--The Secretary may allow 
     preapproval planning and environmental compliance costs to be 
     credited toward the non-Federal share of the cost of a 
     project described in subsection (d)(2) (other than 
     subparagraph (H)) in accordance with subsection (f), limited 
     to costs incurred less than 18 months prior to project 
     approval.''.
       (f) Encouragement of Use of Youth Conservation or Service 
     Corps.--The Secretary shall encourage the States to enter 
     into contracts and cooperative agreements with qualified 
     youth conservation or service corps to perform construction 
     and maintenance of recreational trails under section 206 of 
     title 23, United States Code.

[[Page H7051]]

     SEC. 1110. TEMPORARY TRAFFIC CONTROL DEVICES.

       (a) Standards.--Section 109(e) of title 23, United States 
     Code, is amended--
       (1) by striking ``(e) No funds'' and inserting the 
     following:
       ``(e) Installation of Safety Devices.--
       ``(1) Highway and railroad grade crossings and 
     drawbridges.--No funds''; and
       (2) by adding at the end the following:
       ``(2) Temporary traffic control devices.--No funds shall be 
     approved for expenditure on any Federal-aid highway, or 
     highway affected under chapter 2, unless proper temporary 
     traffic control devices to improve safety in work zones will 
     be installed and maintained during construction, utility, and 
     maintenance operations on that portion of the highway with 
     respect to which such expenditures are to be made. 
     Installation and maintenance of the devices shall be in 
     accordance with the Manual on Uniform Traffic Control 
     Devices.''.
       (b) Letting of Contracts.--Section 112 of such title is 
     amended--
       (1) by striking subsection (f);
       (2) by redesignating subsection (g) as subsection (f); and
       (3) by adding at the end the following:
       ``(g) Temporary Traffic Control Devices.--
       ``(1) Issuance of regulations.--The Secretary, after 
     consultation with appropriate Federal and State officials, 
     shall issue regulations establishing the conditions for the 
     appropriate use of, and expenditure of funds for, uniformed 
     law enforcement officers, positive protective measures 
     between workers and motorized traffic, and installation and 
     maintenance of temporary traffic control devices during 
     construction, utility, and maintenance operations.
       ``(2) Effects of regulations.--Based on regulations issued 
     under paragraph (1), a State shall--
       ``(A) develop separate pay items for the use of uniformed 
     law enforcement officers, positive protective measures 
     between workers and motorized traffic, and installation and 
     maintenance of temporary traffic control devices during 
     construction, utility, and maintenance operations; and
       ``(B) incorporate such pay items into contract provisions 
     to be included in each contract entered into by the State 
     with respect to a highway project to ensure compliance with 
     section 109(e)(2).
       ``(3) Limitation.--Nothing in the regulations shall 
     prohibit a State from implementing standards that are more 
     stringent than those required under the regulations.
       ``(4) Positive protective measures defined.--In this 
     subsection, the term `positive protective measures' means 
     temporary traffic barriers, crash cushions, and other 
     strategies to avoid traffic accidents in work zones, 
     including full road closures.''.
       (c) Clarification of Date.--Section 109(g) of such title is 
     amended in the first sentence by striking ``The Secretary'' 
     and all that follows through ``of 1970'' and inserting ``Not 
     later than January 30, 1971, the Secretary shall issue''.

     SEC. 1111. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS.

       (a) In General.--Section 118(c)(1) of title 23, United 
     States Code, is amended by striking ``$50,000,000'' and all 
     that follows through ``2003'' and inserting ``$100,000,000 
     for each of fiscal years 2005 through 2009''.
       (b) Technical Amendments.--
       (1) Section 116.--Section 116(b) of such title is amended 
     by striking ``highway department'' and inserting 
     ``transportation department''.
       (2) Section 120.--Section 120(e) of such title is amended 
     in the first sentence by striking ``such system'' and 
     inserting ``such highway''.
       (3) Section 127.--Section 127(a) of such title is amended 
     by striking ``118(b)(1)'' and inserting ``118(b)(2)''.
       (4) Bicycle and pedestrian safety grants.--Section 1212(i) 
     of the Transportation Equity Act for the 21st Century (112 
     Stat. 196-197) is amended by redesignating subparagraphs (D) 
     and (E) as paragraphs (2) and (3), respectively, and moving 
     such paragraphs 2 ems to the left.

     SEC. 1112. EMERGENCY RELIEF.

       There are authorized to be appropriated for each fiscal 
     year such sums as may be necessary for allocations by the 
     Secretary described in subsections (a) and (b) of section 125 
     of title 23, United States Code, if the total of those 
     allocations in such fiscal year are in excess of 
     $100,000,000.

     SEC. 1113. SURFACE TRANSPORTATION PROGRAM.

       (a) Program Eligibility.--Section 133(b) of title 23, 
     United States Code, is amended--
       (1) in paragraph (6) by inserting ``, including advanced 
     truck stop electrification systems'' before the period at the 
     end; and
       (2) by inserting after paragraph (11) the following:
       ``(12) Projects relating to intersections that--
       ``(A) have disproportionately high accident rates;
       ``(B) have high levels of congestion, as evidenced by--
       ``(i) interrupted traffic flow at the intersection; and
       ``(ii) a level of service rating that is not better than 
     `F' during peak travel hours, calculated in accordance with 
     the Highway Capacity Manual issued by the Transportation 
     Research Board; and
       ``(C) are located on a Federal-aid highway.''.
       (b) Repeal of Safety Programs Set-aside.--
       (1) Repeal.--Section 133(d)(1) of such title is repealed.
       (2) Technical amendments.--Section 133(d) of such title is 
     amended--
       (A) in the first sentence of paragraph (3)(A)--
       (i) by striking ``subparagraphs (C) and (D)'' and inserting 
     ``subparagraph (C)''; and
       (ii) by striking ``80 percent'' and inserting ``90 
     percent'';
       (B) in paragraph (3)(B) by striking ``tobe'' and inserting 
     ``to be''; and
       (C) in paragraph (3)--
       (i) by striking subparagraph (C);
       (ii) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively; and
       (iii) in subparagraph (C) (as redesignated by clause (ii)) 
     by adding a period at the end.
       (3) Effective date.--Paragraph (1) and paragraph (2)(A)(ii) 
     of this subsection shall take effect October 1, 2005.
       (c) Transportation Enhancement Activities.--Effective 
     October 1, 2005, section 133(d)(2) of such title is amended 
     by striking ``10 percent'' and all that follows through 
     ``section 104(b)(3) for a fiscal year'' and inserting the 
     following: ``In a fiscal year, the greater of 10 percent of 
     the funds apportioned to a State under section 104(b)(3) for 
     such fiscal year, or the amount set aside under this 
     paragraph with respect to the State for fiscal year 2005,''.
       (d) Obligation Authority.--Section 133(f)(1) of such title 
     is amended--
       (1) by striking ``1998 through 2000'' and inserting ``2004 
     through 2006''; and
       (2) by striking ``2001 through 2003'' and inserting ``2007 
     through 2009''.
       (e) Technical Correction.--Effective June 9, 1998, section 
     1108(e) of the Transportation Equity Act for the 21st Century 
     (112 Stat. 140) is amended by striking ``Section 133'' and 
     inserting ``Section 133(f)''.

     SEC. 1114. HIGHWAY BRIDGE PROGRAM.

       (a) Finding and Declaration.--Section 144(a) of title 23, 
     United States Code, is amended to read as follows:
       ``(a) Finding and Declaration.--Congress finds and declares 
     that it is in the vital interest of the United States that a 
     highway bridge program be carried out to enable States to 
     improve the condition of their highway bridges over 
     waterways, other topographical barriers, other highways, and 
     railroads through replacement and rehabilitation of bridges 
     that the States and the Secretary determine are structurally 
     deficient or functionally obsolete and through systematic 
     preventive maintenance of bridges.''.
       (b) Participation.--Section 144(d) of such title is amended 
     to read as follows:
       ``(d) Participation.--
       ``(1) Bridge replacement and rehabilitation.--On 
     application by a State or States to the Secretary for 
     assistance for a highway bridge that has been determined to 
     be eligible for replacement or rehabilitation under 
     subsection (b) or (c), the Secretary may approve Federal 
     participation in--
       ``(A) replacing the bridge with a comparable facility; or
       ``(B) rehabilitating the bridge.
       ``(2) Types of assistance.--On application by a State or 
     States to the Secretary, the Secretary may approve Federal 
     assistance for any of the following activities for a highway 
     bridge that has been determined to be eligible for 
     replacement or rehabilitation under subsection (b) or (c):
       ``(A) Painting.
       ``(B) Seismic retrofit.
       ``(C) Systematic preventive maintenance.
       ``(D) Installation of scour countermeasures.
       ``(E) Application of calcium magnesium acetate, sodium 
     acetate/formate, or other environmentally acceptable, 
     minimally corrosive anti-icing and de-icing compositions.
       ``(3) Basis for determination.--The Secretary shall 
     determine the eligibility of highway bridges for replacement 
     or rehabilitation for each State based on structurally 
     deficient and functionally obsolete highway bridges in the 
     State.
       ``(4) Special rule for preventive maintenance.--
     Notwithstanding any other provision of this subsection, a 
     State may carry out a project under paragraph (2)(B), (2)(C), 
     or (2)(D) for a highway bridge without regard to whether the 
     bridge is eligible for replacement or rehabilitation under 
     this section.''.
       (c) Apportionment of Funds.--Section 144(e) of such title 
     is amended--
       (1) in the third sentence by striking ``square footage'' 
     and inserting ``deck area'';
       (2) in the fourth sentence by striking ``the total cost of 
     deficient bridges in a State and in all States shall be 
     reduced by the total cost of any highway bridges constructed 
     under subsection (m) in such State, relating to replacement 
     of destroyed bridges and ferryboat services, and,''; and
       (3) in the seventh sentence by striking ``for the same 
     period as funds apportioned for projects on the Federal-aid 
     primary system under this title'' and inserting ``for the 
     period specified in section 118(b)(2)''.
       (d) Off-System Bridges.--Section 144(g)(3) of such title is 
     amended to read as follows:
       ``(3) Off-system bridges.--
       ``(A) In general.--Not less than 15 percent of the amount 
     apportioned to each State in each of fiscal years 2005 
     through 2009 shall be expended for projects to replace, 
     rehabilitate, paint, perform systematic preventive 
     maintenance or seismic retrofit of, or apply calcium 
     magnesium acetate, sodium acetate/formate, or other 
     environmentally acceptable, minimally corrosive anti-icing 
     and de-icing compositions to, or install scour 
     countermeasures to, highway bridges located on public roads, 
     other than those on a Federal-aid highway, or to complete the 
     Warwick Intermodal Station (including the construction of a 
     people mover between the Station and the T.F. Green Airport).
       ``(B) Reduction of expenditures.--The Secretary, after 
     consultation with State and local officials, may reduce the 
     requirement for expenditure for bridges not on a Federal-aid 
     highway under subparagraph (A) with respect to the State if 
     the Secretary determines that the State

[[Page H7052]]

     has inadequate needs to justify the expenditure.''.
       (e) Bridge Set-aside.--
       (1) Fiscal year 2005.--Section 144(g)(1)(C) of such title 
     is amended--
       (A) in the subsection heading by striking ``2003''and 
     inserting ``2005''; and
       (B) in the first sentence by striking ``2003'' and 
     inserting ``2005''.
       (2) Fiscal years 2006 through 2009.--Effective October 1, 
     2005, section 144(g) of such title (as amended by subsection 
     (d) of this section) is amended--
       (A) by striking the subsection designation and all that 
     follows through the period at the end of paragraph (2) and 
     inserting the following:
       ``(g) Bridge Set-asides.--
       ``(1) Designated projects.--
       ``(A) In general.--Of the amounts authorized to be 
     appropriated to carry out the bridge program under this 
     section for each of the fiscal years 2006 through 2009, all 
     but $100,000,000 shall be apportioned as provided in 
     subsection (e). Such $100,000,000 shall be available as 
     follows:
       ``(i) $12,500,000 per fiscal year for the Golden Gate 
     Bridge.
       ``(ii) $18,750,000 per fiscal year for the construction of 
     a bridge joining the Island of Gravina to the community of 
     Ketchikan in Alaska.
       ``(iii) $12,500,000 per fiscal year to the State of Nevada 
     for construction of a replacement of the federally owned 
     bridge over the Hoover Dam in the Lake Mead National 
     Recreation Area.
       ``(iv) $12,500,000 per fiscal year to the State of Missouri 
     for construction of a structure over the Mississippi River to 
     connect the city of St. Louis, Missouri, to the State of 
     Illinois.
       ``(v) $12,500,000 per fiscal year for replacement and 
     reconstruction of State maintained bridges in the State of 
     Oklahoma.
       ``(vi) $4,500,000 per fiscal year for replacement of the 
     Missisquoi Bay Bridge, Vermont.
       ``(vii) $8,000,000 per fiscal year for replacement and 
     reconstruction of State-maintained bridges in the State of 
     Vermont.
       ``(viii) $8,750,000 per fiscal year for design, planning, 
     and right-of-way acquisition for the Interstate Route 74 
     bridge from Bettendorf, Iowa, to Moline, Illinois.
       ``(ix) $10,000,000 per fiscal year for replacement and 
     reconstruction of State-maintained bridges in the State of 
     Oregon.
       ``(B) Gravina access scoring.--The project described in 
     subparagraph (A)(ii) shall not be counted for purposes of the 
     reduction set forth in the fourth sentence of subsection (e).
       ``(C) Period of availability.--Amounts made available to a 
     State under this paragraph shall remain available until 
     expended.'';
       (B) by striking paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2).
       (f) Continuation of Report; Federal Share.--Section 144 of 
     such title is amended by adding at the end the following:
       ``(r) Annual Materials Report on New Bridge Construction 
     and Bridge Rehabilitation.--Not later than 1 year after the 
     date of enactment of this subsection, and annually 
     thereafter, the Secretary shall publish in the Federal 
     Register a report describing construction materials used in 
     new Federal-aid bridge construction and bridge rehabilitation 
     projects.
       ``(s) Federal Share.--
       ``(1) In general.--Except as provided under paragraph (2), 
     the Federal share of the cost of a project payable from funds 
     made available to carry out this section shall be determined 
     under section 120(b).
       ``(2) Interstate system.--The Federal share of the cost of 
     a project on the Interstate System payable from funds made 
     available to carry out this section shall be determined under 
     section 120(a).''.
       (g) Technical Amendment.--Section 144(i) of such title is 
     amended by striking ``at the same time'' and all that follows 
     through ``Congress''.

     SEC. 1115. HIGHWAY USE TAX EVASION PROJECTS.

       (a) Eligible Activities.--
       (1) Intergovernmental enforcement efforts.--Section 
     143(b)(2) of title 23, United States Code, is amended by 
     inserting before the period the following: ``; except that of 
     funds so made available for each of fiscal years 2005 through 
     2009, $2,000,000 shall be available only to carry out 
     intergovernmental enforcement efforts, including research and 
     training''.
       (2) Conditions on funds allocated to internal revenue 
     service.--Section 143(b)(3) of such title is amended by 
     striking ``The'' and inserting ``Except as otherwise provided 
     in this section, the''.
       (3) Limitation on use of funds.--Section 143(b)(4) of such 
     title is amended--
       (A) by striking ``and'' at the end of subparagraph (F);
       (B) by striking the period at the end of subparagraph (G) 
     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.''.
       (4) Reports.--Section 143(b) of such title is amended by 
     adding at the end the following:
       ``(9) Reports.--The Commissioner of the Internal Revenue 
     Service and each State shall submit to the Secretary an 
     annual report that describes the projects, examinations, and 
     criminal investigations funded by and carried out under this 
     section. Such report shall specify the estimated annual yield 
     from such projects, examinations, and criminal 
     investigations.''.
       (b) Excise Fuel Reporting System.--Section 143(c) of such 
     title is amended to read as follows:
       ``(c) Excise Tax Fuel Reporting.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of the SAFETEA-LU, the Secretary shall enter into a 
     memorandum of understanding with the Commissioner of the 
     Internal Revenue Service for the purposes of--
       ``(A) the additional development of capabilities needed to 
     support new reporting requirements and databases established 
     under such Act and the American Jobs Creation Act of 2004 
     (P.L. 108-357), and such other reporting requirements and 
     database development as may be determined by the Secretary, 
     in consultation with the Commissioner of the Internal Revenue 
     Service, to be useful in the enforcement of fuel excise 
     taxes, including provisions recommended by the Fuel Tax 
     Enforcement Advisory Committee;
       ``(B) the completion of requirements needed for the 
     electronic reporting of fuel transactions from carriers and 
     terminal operators,
       ``(C) the operation and maintenance of an excise summary 
     terminal activity reporting system and other systems used to 
     provide strategic analyses of domestic and foreign motor fuel 
     distribution trends and patterns,
       ``(D) the collection, analysis, and sharing of information 
     on fuel distribution and compliance or noncompliance with 
     fuel taxes, and
       ``(E) the development, completion, operation, and 
     maintenance of an electronic claims filing system and 
     database and an electronic database of heavy vehicle highway 
     use payments.
       ``(2) Elements of memorandum of understanding.--The 
     memorandum of understanding shall provide that--
       ``(A) the Internal Revenue Service shall develop and 
     maintain any system under paragraph (1) through contracts,
       ``(B) any system under paragraph (1) shall be under the 
     control of the Internal Revenue Service, and
       ``(C) any system under paragraph (1) 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 2005 through 2009, the 
     Secretary shall make available to the Internal Revenue 
     Service such funds as may be necessary to complete, operate, 
     and maintain the systems under paragraph (1) in accordance 
     with this subsection.
       ``(4) Reports.--Not later than September 30 of each year, 
     the Commissioner of the Internal Revenue Service shall 
     provide reports to the Secretary on the status of the 
     Internal Revenue Service projects funded under this 
     subsection.''.
       (c) Allocations.--Of the amounts authorized to be 
     appropriated under section 1101(a)(21) of this Act for 
     highway use tax evasion projects for each of the fiscal years 
     2005 through 2009, the following amounts shall be allocated 
     to the Internal Revenue Service to carry out section 143 of 
     title 23, United States Code:
       (1) $5,000,000 for fiscal year 2005.
       (2) $44,800,000 for fiscal year 2006.
       (3) $53,300,000 for fiscal year 2007.
       (4) $12,000,000 for each of fiscal years 2008 and 2009.

     SEC. 1116. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

       (a) Apportionment.--The Secretary shall apportion funds 
     made available by section 1101(a)(7) of this Act for fiscal 
     years 2005 through 2009 among the States based on the latest 
     available cost to complete estimate for the Appalachian 
     development highway system under section 14501 of title 40, 
     United States Code.
       (b) Applicability of Title 23.--Funds made available by 
     section 1101(a)(7) of this Act for the Appalachian 
     development highway system shall be available for obligation 
     in the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; except that the 
     Federal share of the cost of any project under this section 
     shall be determined in accordance with section 14501 of title 
     40, United States Code, and such funds shall be available to 
     construct highways and access roads under such section and 
     shall remain available until expended.
       (c) Use of Toll Credits.--Section 120(j)(1) of title 23, 
     United States Code, is amended by inserting ``and the 
     Appalachian development highway system program under section 
     14501 of title 40'' after ``section 125''.

     SEC. 1117. TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION 
                   PROGRAM.

       (a) Establishment.--In cooperation with appropriate State, 
     tribal, regional, and local governments, the Secretary shall 
     establish a comprehensive program to address the 
     relationships among transportation, community, and system 
     preservation plans and practices and identify private sector-
     based initiatives to improve such relationships.
       (b) Purpose.--Through the program under this section, the 
     Secretary shall facilitate the planning, development, and 
     implementation of strategies to integrate transportation, 
     community, and system preservation plans and practices that 
     address 1 or more of the following:
       (1) Improve the efficiency of the transportation system of 
     the United States.
       (2) Reduce the impacts of transportation on the 
     environment.
       (3) Reduce the need for costly future investments in public 
     infrastructure.
       (4) Provide efficient access to jobs, services, and centers 
     of trade.
       (5) Examine community development patterns and identify 
     strategies to encourage private sector development that 
     achieves the purposes identified in paragraphs (1) through 
     (4).
       (c) General Authority.--The Secretary shall allocate funds 
     made available to carry out this section to States, 
     metropolitan planning organizations, local governments, and 
     tribal governments to carry out eligible projects to 
     integrate transportation, community, and system preservation 
     plans and practices.

[[Page H7053]]

       (d) Eligibility.--A project described in subsection (c) is 
     an eligible project under this section if the project--
       (1) is eligible for assistance under title 23 or chapter 53 
     of title 49, United States Code; or
       (2) is to conduct any other activity relating to 
     transportation, community, and system preservation that the 
     Secretary determines to be appropriate, including corridor 
     preservation activities that are necessary to implement 1 or 
     more of the following:
       (A) Transit-oriented development plans.
       (B) Traffic calming measures.
       (C) Other coordinated transportation, community, and system 
     preservation practices.
       (e) Criteria.--In allocating funds made available to carry 
     out this section, the Secretary shall give priority 
     consideration to applicants that--
       (1) have instituted preservation or development plans and 
     programs that--
       (A) are coordinated with State and local preservation or 
     development plans, including transit-oriented development 
     plans;
       (B) promote cost-effective and strategic investments in 
     transportation infrastructure that minimize adverse impacts 
     on the environment; or
       (C) promote innovative private sector strategies;
       (2) have instituted other policies to integrate 
     transportation, community, and system preservation practices, 
     such as--
       (A) spending policies that direct funds to high-growth 
     areas;
       (B) urban growth boundaries to guide metropolitan 
     expansion;
       (C) ``green corridors'' programs that provide access to 
     major highway corridors for areas targeted for efficient and 
     compact development; or
       (D) other similar programs or policies as determined by the 
     Secretary;
       (3) have preservation or development policies that include 
     a mechanism for reducing potential impacts of transportation 
     activities on the environment;
       (4) demonstrate a commitment to public and private 
     involvement, including the involvement of nontraditional 
     partners in the project team; and
       (5) examine ways to encourage private sector investments 
     that address the purposes of this section.
       (f) Equitable Distribution.--In allocating funds to carry 
     out this section, the Secretary shall ensure the equitable 
     distribution of funds to a diversity of populations and 
     geographic regions.
       (g) Funding.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $25,000,000 for fiscal 
     year 2005 and $61,250,000 for each of fiscal years 2006, 
     2007, 2008, and 2009.
       (2) Contract authority.--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; except that such funds shall 
     not be transferable, and the Federal share for projects and 
     activities carried out with such funds shall be determined in 
     accordance with section 120(b) of title 23, United States 
     Code.
       (h) Conforming Amendment.--Section 1221 of the 
     Transportation Equity Act for the 21st Century (23 U.S.C. 101 
     note; 112 Stat. 221) is repealed.

     SEC. 1118. TERRITORIAL HIGHWAY PROGRAM.

       (a) In General.--Chapter 2 of title 23, United States Code, 
     is amended by striking section 215 and inserting the 
     following:

     ``Sec. 215. Territorial highway program

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Program.--The term `program' means the territorial 
     highway program established under subsection (b).
       ``(2) Territory.--The term `territory' means the any of the 
     following territories of the United States:
       ``(A) American Samoa.
       ``(B) The Commonwealth of the Northern Mariana Islands.
       ``(C) Guam.
       ``(D) The United States Virgin Islands.
       ``(b) Program.--
       ``(1) In general.--Recognizing the mutual benefits that 
     will accrue to the territories and the United States from the 
     improvement of highways in the territories, the Secretary may 
     carry out a program to assist each government of a territory 
     in the construction and improvement of a system of arterial 
     and collector highways, and necessary inter-island 
     connectors, that is--
       ``(A) designated by the Governor or chief executive officer 
     of each territory; and
       ``(B) approved by the Secretary.
       ``(2) Federal share.--The Federal share of Federal 
     financial assistance provided to territories under this 
     section shall be in accordance with section 120(h).
       ``(c) Technical Assistance.--
       ``(1) In general.--To continue a long-range highway 
     development program, the Secretary may provide technical 
     assistance to the governments of the territories to enable 
     the territories to, on a continuing basis--
       ``(A) engage in highway planning;
       ``(B) conduct environmental evaluations;
       ``(C) administer right-of-way acquisition and relocation 
     assistance programs; and
       ``(D) design, construct, operate, and maintain a system of 
     arterial and collector highways, including necessary inter-
     island connectors.
       ``(2) Form and terms of assistance.--Technical assistance 
     provided under paragraph (1), and the terms for the sharing 
     of information among territories receiving the technical 
     assistance, shall be included in the agreement required by 
     subsection (e).
       ``(d) Nonapplicability of Certain Provisions.--
       ``(1) In general.--Except to the extent that provisions of 
     chapter 1 are determined by the Secretary to be inconsistent 
     with the needs of the territories and the intent of the 
     program, chapter 1 (other than provisions of chapter 1 
     relating to the apportionment and allocation of funds) shall 
     apply to funds authorized to be appropriated for the program.
       ``(2) Applicable provisions.--The agreement required by 
     subsection (e) for each territory shall identify the sections 
     of chapter 1 that are applicable to that territory and the 
     extent of the applicability of those sections.
       ``(e) Agreement.--
       ``(1) In general.--Except as provided in paragraph (4), 
     none of the funds made available for the program shall be 
     available for obligation or expenditure with respect to any 
     territory until the chief executive officer of the territory 
     enters into an agreement with the Secretary (not later than 1 
     year after the date of enactment of SAFETEA-LU), providing 
     that the government of the territory shall--
       ``(A) implement the program in accordance with applicable 
     provisions of chapter 1 and subsection (d);
       ``(B) design and construct a system of arterial and 
     collector highways, including necessary inter-island 
     connectors, in accordance with standards that are--
       ``(i) appropriate for each territory; and
       ``(ii) approved by the Secretary;
       ``(C) provide for the maintenance of facilities constructed 
     or operated under this section in a condition to adequately 
     serve the needs of present and future traffic; and
       ``(D) implement standards for traffic operations and 
     uniform traffic control devices that are approved by the 
     Secretary.
       ``(2) Technical assistance.--The agreement required by 
     paragraph (1) shall--
       ``(A) specify the kind of technical assistance to be 
     provided under the program;
       ``(B) include appropriate provisions regarding information 
     sharing among the territories; and
       ``(C) delineate the oversight role and responsibilities of 
     the territories and the Secretary.
       ``(3) Review and revision of agreement.--The agreement 
     entered into under paragraph (1) shall be reevaluated and, as 
     necessary, revised, at least every 2 years.
       ``(4) Existing agreements.--With respect to an agreement 
     under the section between the Secretary and the chief 
     executive officer of a territory that is in effect as of the 
     date of enactment of the SAFETEA-LU--
       ``(A) the agreement shall continue in force until replaced 
     by an agreement entered into in accordance with paragraph 
     (1); and
       ``(B) amounts made available for the program under the 
     existing agreement shall be available for obligation or 
     expenditure so long as the agreement, or the existing 
     agreement entered into under paragraph (1), is in effect.
       ``(f) Permissible Uses of Funds.--
       ``(1) In general.--Funds made available for the program may 
     be used only for the following projects and activities 
     carried out in a territory:
       ``(A) Eligible surface transportation program projects 
     described in section 133(b).
       ``(B) Cost-effective, preventive maintenance consistent 
     with section 116(d).
       ``(C) Ferry boats, terminal facilities, and approaches, in 
     accordance with subsections (b) and (c) of section 129.
       ``(D) Engineering and economic surveys and investigations 
     for the planning, and the financing, of future highway 
     programs.
       ``(E) Studies of the economy, safety, and convenience of 
     highway use.
       ``(F) The regulation and equitable taxation of highway use.
       ``(G) Such research and development as are necessary in 
     connection with the planning, design, and maintenance of the 
     highway system.
       ``(2) Prohibition on use of funds for routine 
     maintenance.--None of the funds made available for the 
     program shall be obligated or expended for routine 
     maintenance.
       ``(g) Location of Projects.--Territorial highway projects 
     (other than those described in paragraphs (1), (3), and (4) 
     of section 133(b)) may not be undertaken on roads 
     functionally classified as local.''.
       (b) Conforming Amendments.--
       (1) Eligible projects.--Section 103(b) of such title is 
     amended--
       (A) in the heading for paragraph (6) by striking 
     ``Eligible'' and inserting ``State eligible'';
       (B) in paragraph (6) by striking subparagraph (P) ; and
       (C) by adding at the end the following:
       ``(7) Territory eligible projects.--Subject to approval by 
     the Secretary, funds set aside for this program under section 
     104(b)(1) for the National Highway System may be obligated 
     for projects eligible for assistance under the territorial 
     highway program under section 215.''.
       (2) Funding.--Section 104(b)(1)(A) of such title is amended 
     by striking ``to the Virgin Islands, Guam, American Samoa, 
     and the Commonwealth of Northern Mariana Islands'' and 
     inserting ``for the territorial highway program under section 
     215''.
       (3) Clerical amendment.--The analysis for chapter 2 of such 
     title is amended by striking the item relating to section 215 
     and inserting the following:

``215. Territorial highway program.''.

     SEC. 1119. FEDERAL LANDS HIGHWAYS.

       (a) Federal Share Payable.--
       (1) In general.--Section 120(k) of title 23, United States 
     Code, is amended--
       (A) by striking ``Federal-aid highway''; and
       (B) by striking ``section 104'' and inserting ``this title 
     or chapter 53 of title 49''.
       (2) Technical references.--Section 120(l) of such title is 
     amended by striking ``section 104'' and inserting ``this 
     title or chapter 53 of title 49''.

[[Page H7054]]

       (b) Payments to Federal Agencies for Federal-Aid 
     Projects.--Section 132 of such title is amended--
       (1) by striking the first 2 sentences and inserting the 
     following:
       ``(a) In General.--In a case in which a proposed Federal-
     aid project is to be undertaken by a Federal agency in 
     accordance with an agreement between a State and the Federal 
     agency, the State may--
       ``(1) direct the Secretary to transfer the funds for the 
     Federal share of the project directly to the Federal agency; 
     or
       ``(2) make such deposit with, or payment to, the Federal 
     agency as is required to meet the obligation of the State 
     under the agreement for the work undertaken or to be 
     undertaken by the Federal agency.
       ``(b) Reimbursement.--On execution with a State of a 
     project agreement described in subsection (a), the Secretary 
     may reimburse the State, using any available funds, for the 
     estimated Federal share under this title of the obligation of 
     the State deposited or paid under subsection (a)(2).''; and
       (2) in the last sentence by striking ``Any sums'' and 
     inserting the following:
       ``(c) Recovery and Crediting of Funds.--Any sums''.
       (c)  Allocations.--Section 202 of such title is amended--
       (1) in subsection (a) by striking ``(a) On October 1'' and 
     all that follows through ``Such allocation'' and inserting 
     the following:
       ``(a) Allocation Based on Need.--
       ``(1) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate sums authorized to be appropriated 
     for the fiscal year for forest development roads and trails 
     according to the relative needs of the various national 
     forests and grasslands.
       ``(2) Planning.--The allocation under paragraph (1)'';
       (2) in subsection (d)(2)--
       (A) by adding at the end the following:
       ``(E) Transferred funds.--
       ``(i) In general.--Not later than 30 days after the date on 
     which funds are made available to the Secretary of the 
     Interior under this paragraph, the funds shall be distributed 
     to, and available for immediate use by, the eligible Indian 
     tribes, in accordance with the formula for distribution of 
     funds under the Indian reservation roads program.
       ``(ii) Use of funds.--Notwithstanding any other provision 
     of this section, funds available to Indian tribes for Indian 
     reservation roads shall be expended on projects identified in 
     a transportation improvement program approved by the 
     Secretary.''; and
       (B) in subsection (d)(3)(A) by striking ``under this 
     title'' and inserting ``under this chapter and section 
     125(e)''.
       (d) Federal Lands Highways Program.--Section 202 of such 
     title is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Allocation for Public Lands Highways.--
       ``(1) Public lands highways.--
       ``(A) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate 34 percent of the sums authorized to 
     be appropriated for that fiscal year for public lands 
     highways among those States having unappropriated or 
     unreserved public lands, nontaxable Indian lands, or other 
     Federal reservations, on the basis of need in the States, 
     respectively, as determined by the Secretary, on application 
     of the State transportation departments of the respective 
     States.
       ``(B) Preference.--In making the allocation under 
     subparagraph (A), the Secretary shall give preference to 
     those projects that are significantly impacted by Federal 
     land and resource management activities that are proposed by 
     a State that contains at least 3 percent of the total public 
     land in the United States.
       ``(2) Forest highways.--
       ``(A) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate 66 percent of the funds authorized 
     to be appropriated for public lands highways for forest 
     highways in accordance with section 134 of the Federal-Aid 
     Highway Act of 1987 (23 U.S.C. 202 note; 101 Stat. 173).
       ``(B) Public access to and within national forest system.--
     In making the allocation under subparagraph (A), the 
     Secretary shall give equal consideration to projects that 
     provide access to and within the National Forest System, as 
     identified by the Secretary of Agriculture through--
       ``(i) renewable resource and land use planning; and
       ``(ii) assessments of the impact of that planning on 
     transportation facilities.''.
       (e) BIA Administrative Expenses.--Section 202(d)(2) of such 
     title (as amended by subsection (c)(2) of this section) is 
     amended by adding at the end the following:
       ``(F) Administrative expenses.--
       ``(i) In general.--Of the funds authorized to be 
     appropriated for Indian reservation roads, $20,000,000 for 
     fiscal year 2006, $22,000,000 for fiscal year 2007, 
     $24,500,000 for fiscal year 2008, and $27,000,000 for fiscal 
     year 2009 may be used by the Secretary of the Interior for 
     program management and oversight and project-related 
     administrative expenses.
       ``(ii) Health and safety assurances.--Notwithstanding any 
     other provision of law, an Indian tribal government may 
     approve plans, specifications, and estimates and commence 
     road and bridge construction with funds made available for 
     Indian reservation roads under the Transportation Equity Act 
     for the 21st Century (Public Law 105-178) and SAFETEA-LU 
     through a contract or agreement under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b et 
     seq.) if the Indian tribal government--

       ``(I) provides assurances in the contract or agreement that 
     the construction will meet or exceed applicable health and 
     safety standards;
       ``(II) obtains the advance review of the plans and 
     specifications from a State-licensed civil engineer that has 
     certified that the plans and specifications meet or exceed 
     the applicable health and safety standards; and
       ``(III) provides a copy of the certification under 
     subclause (I) to the Deputy Assistant Secretary for Tribal 
     Government Affairs or the Assistant Secretary for Indian 
     Affairs, as appropriate.''.

       (f) National Tribal Transportation Facility Inventory.--
     Section 202(d)(2) of such title (as amended by subsection 
     (e)) is amended by adding at the end the following:
       ``(G) National tribal transportation facility inventory.--
       ``(i) In general.--Not later than 2 years after the date of 
     enactment of the SAFETEA-LU, the Secretary, in cooperation 
     with the Secretary of the Interior, shall complete a 
     comprehensive national inventory of transportation facilities 
     that are eligible for assistance under the Indian reservation 
     roads program.
       ``(ii) Transportation facilities included in the 
     inventory.--For purposes of identifying the tribal 
     transportation system and determining the relative 
     transportation needs among Indian tribes, the Secretary shall 
     include, at a minimum, transportation facilities that are 
     eligible for assistance under the Indian reservation roads 
     program that a tribe has requested, including facilities 
     that--

       ``(I) were included in the Bureau of Indian Affairs system 
     inventory for funding formula purposes in 1992 or any 
     subsequent fiscal year;
       ``(II) were constructed or reconstructed with funds from 
     the Highway Trust Funds (other than the Mass Transit Account) 
     under the Indian reservation roads program since 1983;
       ``(III) are owned by an Indian tribal government; or
       ``(IV) are community streets or bridges within the exterior 
     boundary of Indian reservations, Alaska Native villages, and 
     other recognized Indian communities (including communities in 
     former Indian reservations in Oklahoma) in which the majority 
     of residents are American Indians or Alaska Natives; or
       ``(V) are primary access routes proposed by tribal 
     governments, including roads between villages, roads to 
     landfills, roads to drinking water sources, roads to natural 
     resources identified for economic development, and roads that 
     provide access to intermodal termini, such as airports, 
     harbors, or boat landings.

       ``(iii) Limitation on primary access routes.--For purposes 
     of this subparagraph, a proposed primary access route is the 
     shortest practicable route connecting 2 points of the 
     proposed route.
       ``(iv) Additional facilities.--Nothing in this subparagraph 
     shall preclude the Secretary from including additional 
     transportation facilities that are eligible for funding under 
     the Indian reservation roads program in the inventory used 
     for the national funding allocation if such additional 
     facilities are included in the inventory in a uniform and 
     consistent manner nationally.
       ``(v) Report to congress.--Not later than 90 days after the 
     date of completion of the inventory under this subparagraph, 
     the Secretary shall prepare and submit a report to Congress 
     that includes the data gathered and the results of the 
     inventory.''.
       (g) Indian Reservation Road Bridges.--Section 202(d)(4) of 
     such title is amended--
       (1) in subparagraph (B)--
       (A) by striking ``(B) Reservation.--Of the amounts'' and 
     all that follows through ``to replace,'' and inserting the 
     following:
       ``(B) Funding.--
       ``(i) Authorization of appropriations.--In addition to any 
     other funds made available for Indian reservation roads for 
     each fiscal year, there is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $14,000,000 for each of fiscal years 2005 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 shall be available for obligation in the 
     same manner as if such funds were apportioned under chapter 
     1.'';
       (2) in subparagraph (C) by striking clause (iii) and 
     inserting the following:
       ``(iii) be structurally deficient or functionally obsolete; 
     and''; and
       (3) 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 after approval of 
     applicable plans, specifications, and estimates in accordance 
     with this title.''.
       (4) Contracts and agreements with indian tribes.--Section 
     202(d) of such title is amended by adding at the end the 
     following:
       ``(5) Contracts and agreements with indian tribes.--
       ``(A) In general.--Notwithstanding any other provision of 
     law or any interagency agreement, program guideline, manual, 
     or policy directive, all funds made available to an Indian 
     tribal government under this chapter for a highway, road, 
     bridge, parkway, or transit facility program or project that 
     is located on an Indian reservation or provides access to the 
     reservation or a community of the Indian tribe shall be made 
     available, on the request of the Indian tribal government, to 
     the Indian tribal government for use in carrying out, in 
     accordance with the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.), contracts and

[[Page H7055]]

     agreements for the planning, research, design, engineering, 
     construction, and maintenance relating to the program or 
     project.
       ``(B) Exclusion of agency participation.--In accordance 
     with subparagraph (A), all funds for a program or project to 
     which subparagraph (A) applies shall be paid to the Indian 
     tribal government without regard to the organizational level 
     at which the Department of the Interior has previously 
     carried out, or the Department of Transportation has 
     previously carried out under the Federal lands highway 
     programs, the programs, functions, services, or activities 
     involved.
       ``(C) Consortia.--Two or more Indian tribes that are 
     otherwise eligible to participate in a program or project to 
     which this chapter applies may form a consortium to be 
     considered as a single Indian tribe for the purpose of 
     participating in the project under this section.
       ``(D) Secretary as signatory.--Notwithstanding any other 
     provision of law, the Secretary is authorized to enter into a 
     funding agreement with an Indian tribal government to carry 
     out a highway, road, bridge, parkway, or transit program or 
     project under subparagraph (A) that is located on an Indian 
     reservation or provides access to the reservation or a 
     community of the Indian tribe.
       ``(E) Funding.--The amount an Indian tribal government 
     receives for a program or project under subparagraph (A) 
     shall equal the sum of the funding that the Indian tribal 
     government would otherwise receive for the program or project 
     in accordance with the funding formula established under this 
     subsection and such additional amounts as the Secretary 
     determines equal the amounts that would have been withheld 
     for the costs of the Bureau of Indian Affairs for 
     administration of the program or project.
       ``(F) Eligibility.--
       ``(i) In general.--Subject to clause (ii), funds may be 
     made available under subparagraph (A) to an Indian tribal 
     government for a program or project in a fiscal year only if 
     the Indian tribal government requesting such funds 
     demonstrates to the satisfaction of the Secretary financial 
     stability and financial management capability during the 3 
     fiscal years immediately preceding the fiscal year for which 
     the request is being made.
       ``(ii) Criteria for determining financial stability and 
     financial management capability.--An Indian tribal government 
     that had no uncorrected significant and material audit 
     exceptions in the required annual audit of the Indian tribal 
     government self-determination contracts or self-governance 
     funding agreements with any Federal agency during the 3-
     fiscal year period referred in clause (i) shall be conclusive 
     evidence of the financial stability and financial management 
     capability for purposes of clause (i).
       ``(G) Assumption of functions and duties.--An Indian tribal 
     government receiving funding under subparagraph (A) for a 
     program or project shall assume all functions and duties that 
     the Secretary of the Interior would have performed with 
     respect to a program or project under this chapter, other 
     than those functions and duties that inherently cannot be 
     legally transferred under the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450b et seq.).
       ``(H) Powers.--An Indian tribal government receiving 
     funding under subparagraph (A) for a program or project shall 
     have all powers that the Secretary of the Interior would have 
     exercised in administering the funds transferred to the 
     Indian tribal government for such program or project under 
     this section if the funds had not been transferred, except to 
     the extent that such powers are powers that inherently cannot 
     be legally transferred under the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450b et seq.).
       ``(I) Dispute resolution.--In the event of a disagreement 
     between the Secretary or the Secretary of the Interior and an 
     Indian tribe over whether a particular function, duty, or 
     power may be lawfully transferred under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b et 
     seq.), the Indian tribe shall have the right to pursue all 
     alternative dispute resolutions and appeal procedures 
     authorized by such Act, including regulations issued to carry 
     out such Act.
       ``(J) Termination of contract or agreement.--On the date of 
     the termination of a contract or agreement under this section 
     by an Indian tribal government, the Secretary shall transfer 
     all funds that would have been allocated to the Indian tribal 
     government under the contract or agreement to the Secretary 
     of the Interior to provide continued transportation services 
     in accordance with applicable law.''.
       (h) Planning and Agency Coordination.--Section 204 of such 
     title is amended--
       (1) in subsection (a)(1) by inserting ``refuge roads,'' 
     after ``parkways,''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Use of Funds.--
       ``(1) In general.--Funds made available for public lands 
     highways, park roads and parkways, and Indian reservation 
     roads shall be used by the Secretary and the Secretary of the 
     appropriate Federal land management agency to pay the cost 
     of--
       ``(A) transportation planning, research, and engineering 
     and construction of, highways, roads, parkways, and transit 
     facilities located on public lands, national parks, and 
     Indian reservations; and
       ``(B) operation and maintenance of transit facilities 
     located on public lands, 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 
     contract or other appropriate agreement with respect to 
     such activity 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 employed, in accordance with such 
     rules and regulations as may be promulgated by the Secretary 
     of the Interior, to carry out any construction or other 
     activity described in paragraph (1); 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 limitation on Federal 
     employment shall be applicable to construction or improvement 
     of Indian reservation roads.
       ``(5) Availability of funds.--Funds made available under 
     this section for each class of Federal lands highways shall 
     be available for any 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 highways.
       ``(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 roads program to finance Indian technical centers 
     under section 504(b).''.
       (i) Maintenance of Indian Reservation Roads.--Section 
     204(c) of such title 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 allocated for Indian reservation roads from 
     the Highway Trust Fund, not more than 25 percent of the funds 
     allocated to an Indian tribe may be expended for the purpose 
     of maintenance, excluding road sealing which shall not be 
     subject to any limitation. The Bureau of Indian Affairs shall 
     continue to retain primary responsibility, including annual 
     funding request responsibility, for road maintenance programs 
     on Indian reservations. The Secretary shall ensure that 
     funding made available under this subsection for maintenance 
     of Indian reservation roads for each fiscal year is 
     supplementary to and not in lieu of any obligation of funds 
     by the Bureau of Indian Affairs for road maintenance programs 
     on Indian reservations.''.
       (j) Refuge Roads.--Section 204(k)(1) of such title is 
     amended--
       (1) in subparagraph (B)--
       (A) by striking ``(2), (5),'' and inserting ``(2), (3), 
     (5),''; and
       (B) by striking ``and'' after the semicolon;
       (2) in subparagraph (C) by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(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 a wildlife refuge; and
       ``(E) 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.''.
       (k) Tribal-State Road Maintenance Agreements.--Section 204 
     of such title is amended by adding at the end the following:
       ``(l) Tribal-State Road Maintenance Agreements.--
       ``(1) In general.--An Indian tribe and a State may enter 
     into a road maintenance agreement under which an Indian tribe 
     assumes the responsibilities of the State for--
       ``(A) Indian reservation roads; and
       ``(B) roads providing access to Indian reservation roads.
       ``(2) Tribal-state agreements.--Agreements entered into 
     under paragraph (1)--
       ``(A) shall be negotiated between the State and the Indian 
     tribe; and
       ``(B) shall not require the approval of the Secretary.
       ``(3) Annual report.--Effective beginning with fiscal year 
     2005, the Secretary shall prepare and submit to Congress an 
     annual report that identifies--
       ``(A) the Indian tribes and States that have entered into 
     agreements under paragraph (1);
       ``(B) the number of miles of roads for which Indian tribes 
     have assumed maintenance responsibilities; and
       ``(C) the amount of funding transferred to Indian tribes 
     for the fiscal year under agreements entered into under 
     paragraph (1).''.
       (l) Deputy Assistant Secretary of Transportation for Tribal 
     Government Affairs.--Section 102 of title 49, United States 
     Code, is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f) Deputy Assistant Secretary for Tribal Government 
     Affairs.--
       ``(1) Establishment.--In accordance with Federal policies 
     promoting Indian self determination, the Department of 
     Transportation shall have, within the office of the 
     Secretary, a Deputy Assistant Secretary for Tribal Government 
     Affairs appointed by the President to plan, coordinate, and 
     implement the Department of Transportation policy and 
     programs serving Indian tribes and tribal organizations and 
     to coordinate tribal transportation programs and activities 
     in all offices and administrations of the Department and to 
     be a participant in any negotiated rulemaking relating to, or 
     having an impact on, projects, programs, or funding 
     associated with the tribal transportation program.
       ``(2) Reservation of trust obligations.--
       ``(A) Responsibility of secretary.--In carrying out this 
     title, the Secretary shall be responsible to exercise the 
     trust obligations of the United States to Indians and Indian 
     tribes to ensure that the rights of a tribe or individual 
     Indian are protected.

[[Page H7056]]

       ``(B) Preservation of united states responsibility.--
     Nothing in this title shall absolve the United States from 
     any responsibility to Indians and Indian tribes, including 
     responsibilities derived from the trust relationship and any 
     treaty, executive order, or agreement between the United 
     States and an Indian tribe.''.
       (m) Forest Highways.--Of the amounts made available for 
     public lands highways under section 1101--
       (1) not to exceed $20,000,000 per fiscal year may be used 
     for the maintenance of forest highways;
       (2) not to exceed $1,000,000 per fiscal year may be used 
     for signage identifying public hunting and fishing access; 
     and
       (3) not to exceed $10,000,000 per fiscal year shall be used 
     by the Secretary of Agriculture to pay the costs of 
     facilitating the passage of aquatic species beneath roads in 
     the National Forest System, including the costs of 
     constructing, maintaining, replacing, or removing culverts 
     and bridges, as appropriate.
       (n) Wildlife Vehicle Collision Reduction Study.--
       (1) In general.--The Secretary shall conduct a study of 
     methods to reduce collisions between motor vehicles and 
     wildlife (in this subsection referred to as ``wildlife 
     vehicle collisions'').
       (2) Contents.--
       (A) Areas of study.--The study shall include an assessment 
     of the causes and impacts of wildlife vehicle collisions and 
     solutions and best practices for reducing such collisions.
       (B) Methods for conducting the study.--In carrying out the 
     study, the Secretary shall--
       (i) conduct a thorough literature review; and
       (ii) survey current practices of the Department of 
     Transportation.
       (3) Consultation.--In carrying out the study, the Secretary 
     shall consult with appropriate experts in the field of 
     wildlife vehicle collisions.
       (4) Report.--
       (A) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study.
       (B) Contents.--The report shall include a description of 
     each of the following:
       (i) Causes of wildlife vehicle collisions.
       (ii) Impacts of wildlife vehicle collisions.
       (iii) Solutions to and prevention of wildlife vehicle 
     collisions.
       (5) Manual.--
       (A) Development.--Based upon the results of the study, the 
     Secretary shall develop a best practices manual to support 
     State efforts to reduce wildlife vehicle collisions.
       (B) Availability.--The manual shall be made available to 
     States not later than 1 year after the date of transmission 
     of the report under paragraph (4).
       (C) Contents.--The manual shall include, at a minimum, the 
     following:
       (i) A list of best practices addressing wildlife vehicle 
     collisions.
       (ii) A list of information, technical, and funding 
     resources for addressing wildlife vehicle collisions.
       (iii) Recommendations for addressing wildlife vehicle 
     collisions.
       (iv) Guidance for developing a State action plan to address 
     wildlife vehicle collisions.
       (6) Training.--Based upon the manual developed under 
     paragraph (5), the Secretary shall develop a training course 
     on addressing wildlife vehicle collisions for transportation 
     professionals.
       (o) Limitation on Applicability.--The requirements of the 
     January 4, 2005, Federal Highway Administration, a final rule 
     on the implementation of the Uniform Relocation Assistance 
     and Real Property Acquisition policy Act of 1970 (42 U.S.C. 
     4601 et seq.) shall not apply to the voluntary conservation 
     easement activities of the Department of Agriculture or the 
     Department of the Interior.

     SEC. 1120. PUERTO RICO HIGHWAY PROGRAM.

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

     ``Sec. 165. Puerto Rico highway program

       ``(a) In General.--The Secretary shall allocate funds made 
     available to carry out this section for each of fiscal years 
     2005 through 2009 to the Commonwealth of Puerto Rico to carry 
     out a highway program in the Commonwealth.
       ``(b) Applicability of Title.--Amounts made available by 
     section 1101(a)(14) of the SAFETEA-LU shall be available for 
     obligation in the same manner as if such funds were 
     apportioned under this chapter.
       ``(c) Treatment of Funds.--Amounts made available to carry 
     out this section for a fiscal year shall be administered as 
     follows:
       ``(1) Apportionment.--For the purpose of imposing any 
     penalty under this title or title 49, the amounts shall be 
     treated as being apportioned to Puerto Rico under sections 
     104(b) and 144, for each program funded under those sections 
     in an amount determined by multiplying--
       ``(A) the aggregate of the amounts for the fiscal year; by
       ``(B) the ratio that--
       ``(i) the amount of funds apportioned to Puerto Rico for 
     each such program for fiscal year 1997; bears to
       ``(ii) the total amount of funds apportioned to Puerto Rico 
     for all such programs for fiscal year 1997.
       ``(2) Penalty.--The amounts treated as being apportioned to 
     Puerto Rico under each section referred to in paragraph (1) 
     shall be deemed to be required to be apportioned to Puerto 
     Rico under that section for purposes of the imposition of any 
     penalty under this title or title 49.
       ``(d) Effect on Allocations and Apportionments.--Subject to 
     subsection (c)(2), nothing in this section affects any 
     allocation under section 105 and any apportionment under 
     sections 104 and 144.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of such title is amended by adding at the end the 
     following:

``165. Puerto Rico highway program.''.
       (c) Definition of State.--For the purposes of apportioning 
     funds under sections 104, 105, 130, 144, and 206 of title 23, 
     United States Code, and section 1404, relating to the safe 
     routes to school program, the term ``State'' means any of the 
     50 States and the District of Columbia.

     SEC. 1121. HOV FACILITIES.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1120 of this Act), 
     is amended by adding at the end the following:

     ``Sec. 166. HOV Facilities

       ``(a) In General.--
       ``(1) Authority of state agencies.--A State agency that has 
     jurisdiction over the operation of a HOV facility shall 
     establish the occupancy requirements of vehicles operating on 
     the facility.
       ``(2) Occupancy requirement.--Except as otherwise provided 
     by this section, no fewer than 2 occupants per vehicle may be 
     required for use of a HOV facility.
       ``(b) Exceptions.--
       ``(1) In general.--Notwithstanding the occupancy 
     requirement of subsection (a)(2), the exceptions in 
     paragraphs (2) through (5) shall apply with respect to a 
     State agency operating a HOV facility.
       ``(2) Motorcycles and bicycles.--
       ``(A) In general.--Subject to subparagraph (B), the State 
     agency shall allow motorcycles and bicycles to use the HOV 
     facility.
       ``(B) Safety exception.--
       ``(i) In general.--A State agency may restrict use of the 
     HOV facility by motorcycles or bicycles (or both) if the 
     agency certifies to the Secretary that such use would create 
     a safety hazard and the Secretary accepts the certification.
       ``(ii) Acceptance of certification.--The Secretary may 
     accept a certification under this subparagraph only after the 
     Secretary publishes notice of the certification in the 
     Federal Register and provides an opportunity for public 
     comment.
       ``(3) Public transportation vehicles.--The State agency may 
     allow public transportation vehicles to use the HOV facility 
     if the agency--
       ``(A) establishes requirements for clearly identifying the 
     vehicles; and
       ``(B) establishes procedures for enforcing the restrictions 
     on the use of the facility by the vehicles.
       ``(4) High occupancy toll vehicles.--The State agency may 
     allow vehicles not otherwise exempt pursuant to this 
     subsection to use the HOV facility if the operators of the 
     vehicles pay a toll charged by the agency for use of the 
     facility and the agency--
       ``(A) establishes a program that addresses how motorists 
     can enroll and participate in the toll program;
       ``(B) develops, manages, and maintains a system that will 
     automatically collect the toll; and
       ``(C) establishes policies and procedures to--
       ``(i) manage the demand to use the facility by varying the 
     toll amount that is charged; and
       ``(ii) enforce violations of use of the facility.
       ``(5) Low emission and energy-efficient vehicles.--
       ``(A) Inherently low emission vehicle.--Before September 
     30, 2009, the State agency may allow vehicles that are 
     certified as inherently low-emission vehicles pursuant to 
     section 88.311-93 of title 40, Code of Federal Regulations 
     (or successor regulations), and are labeled in accordance 
     with section 88.312-93 of such title (or successor 
     regulations), to use the HOV facility if the agency 
     establishes procedures for enforcing the restrictions on the 
     use of the facility by the vehicles.
       ``(B) Other low emission and energy-efficient vehicles.--
     Before September 30, 2009, the State agency may allow 
     vehicles certified as low emission and energy-efficient 
     vehicles under subsection (e), and labeled in accordance with 
     subsection (e), to use the HOV facility if the operators of 
     the vehicles pay a toll charged by the agency for use of the 
     facility and the agency--
       ``(i) establishes a program that addresses the selection of 
     vehicles under this paragraph; and
       ``(ii) establishes procedures for enforcing the 
     restrictions on the use of the facility by the vehicles.
       ``(C) Amount of tolls.--Under subparagraph (B), a State 
     agency may charge no toll or may charge a toll that is less 
     than tolls charged under paragraph (3).
       ``(c) Requirements Applicable to Tolls.--
       ``(1) In general.--Tolls may be charged under paragraphs 
     (3) and (4) of subsection (b) notwithstanding section 301 
     and, except as provided in paragraphs (2) and (3), subject to 
     the requirements of section 129.
       ``(2) HOV facilities on the interstate system.--
     Notwithstanding section 129, tolls may be charged under 
     paragraphs (3) and (4) of subsection (b) on a HOV facility on 
     the Interstate System.
       ``(3) Excess toll revenues.--If a State agency makes a 
     certification under section 129(a)(3) with respect to toll 
     revenues collected under paragraphs (3) and (4) of subsection 
     (b), the State, in the use of toll revenues under that 
     sentence, shall give priority consideration to projects for 
     developing alternatives to single occupancy vehicle travel 
     and projects for improving highway safety.
       ``(d) HOV Facility Management, Operation, Monitoring, and 
     Enforcement.--
       ``(1) In general.--A State agency that allows vehicles to 
     use a HOV facility under paragraph (3) or (4) of subsection 
     (b) in a fiscal year shall certify to the Secretary that the 
     agency will carry out the following responsibilities with 
     respect to the facility in the fiscal year:
       ``(A) Establishing, managing, and supporting a performance 
     monitoring, evaluation, and reporting program for the 
     facility that provides

[[Page H7057]]

     for continuous monitoring, assessment, and reporting on the 
     impacts that the vehicles may have on the operation of the 
     facility and adjacent highways.
       ``(B) Establishing, managing, and supporting an enforcement 
     program that ensures that the facility is being operated in 
     accordance with the requirements of this section.
       ``(C) Limiting or discontinuing the use of the facility by 
     the vehicles if the presence of the vehicles has degraded the 
     operation of the facility.
       ``(2) Degraded facility.--
       ``(A) Definition of minimum average operating speed.--In 
     this paragraph, the term `minimum average operating speed' 
     means--
       ``(i) 45 miles per hour, in the case of a HOV facility with 
     a speed limit of 50 miles per hour or greater; and
       ``(ii) not more than 10 miles per hour below the speed 
     limit, in the case of a HOV facility with a speed limit of 
     less than 50 miles per hour.
       ``(B) Standard for determining degraded facility.--For 
     purposes of paragraph (1), the operation of a HOV facility 
     shall be considered to be degraded if vehicles operating on 
     the facility are failing to maintain a minimum average 
     operating speed 90 percent of the time over a consecutive 
     180-day period during morning or evening weekday peak hour 
     periods (or both).
       ``(C) Management of low emission and energy-efficient 
     vehicles.--In managing the use of HOV lanes by low emission 
     and energy-efficient vehicles that do not meet applicable 
     occupancy requirements, a State agency may increase the 
     percentages described in subsection (f)(3)(B)(i).
       ``(e) Certification of Low Emission and Energy-Efficient 
     Vehicles.--Not later than 180 days after the date of 
     enactment of this section, the Administrator of the 
     Environmental Protection Agency shall--
       ``(1) issue a final rule establishing requirements for 
     certification of vehicles as low emission and energy-
     efficient vehicles for purposes of this section and 
     requirements for the labeling of the vehicles; and
       ``(2) establish guidelines and procedures for making the 
     vehicle comparisons and performance calculations described in 
     subsection (f)(3)(B), in accordance with section 32908(b) of 
     title 49.
       ``(f) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Alternative fuel vehicle.--The term `alternative fuel 
     vehicle' means a vehicle that is operating on--
       ``(A) methanol, denatured ethanol, or other alcohols;
       ``(B) a mixture containing at least 85 percent of methanol, 
     denatured ethanol, and other alcohols by volume with gasoline 
     or other fuels;
       ``(C) natural gas;
       ``(D) liquefied petroleum gas;
       ``(E) hydrogen;
       ``(F) coal derived liquid fuels;
       ``(G) fuels (except alcohol) derived from biological 
     materials;
       ``(H) electricity (including electricity from solar 
     energy); or
       ``(I) any other fuel that the Secretary prescribes by 
     regulation that is not substantially petroleum and that would 
     yield substantial energy security and environmental benefits, 
     including fuels regulated under section 490 of title 10, Code 
     of Federal Regulations (or successor regulations).
       ``(2) HOV facility.--The term `HOV facility' means a high 
     occupancy vehicle facility.
       ``(3) Low emission and energy-efficient vehicle.--The term 
     `low emission and energy-efficient vehicle' means a vehicle 
     that--
       ``(A) has been certified by the Administrator as meeting 
     the Tier II emission level established in regulations 
     prescribed by the Administrator under section 202(i) of the 
     Clean Air Act (42 U.S.C. 7521(i)) for that make and model 
     year vehicle; and
       ``(B)(i) is certified by the Administrator of the 
     Environmental Protection Agency, in consultation with the 
     manufacturer, to have achieved not less than a 50-percent 
     increase in city fuel economy or not less than a 25-percent 
     increase in combined city-highway fuel economy (or such 
     greater percentage of city or city-highway fuel economy as 
     may be determined by a State under subsection (d)(2)(C)) 
     relative to a comparable vehicle that is an internal 
     combustion gasoline fueled vehicle (other than a vehicle that 
     has propulsion energy from onboard hybrid sources); or
       ``(ii) is an alternative fuel vehicle.
       ``(4) Public transportation vehicle.--The term `public 
     transportation vehicle' means a vehicle that--
       ``(A) provides designated public transportation (as defined 
     in section 221 of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12141) or provides public school transportation 
     (to and from public or private primary, secondary, or 
     tertiary schools); and
       ``(B)(i) is owned or operated by a public entity;
       ``(ii) is operated under a contract with a public entity; 
     or
       ``(iii) is operated pursuant to a license by the Secretary 
     or a State agency to provide motorbus or school vehicle 
     transportation services to the public.
       ``(5) State agency.--
       ``(A) In general.--The term `State agency', as used with 
     respect to a HOV facility, means an agency of a State or 
     local government having jurisdiction over the operation of 
     the facility.
       ``(B) Inclusion.--The term `State agency' includes a State 
     transportation department.''.
       (b) Conforming Amendments.--
       (1) Program efficiencies.--Section 102 of title 23, United 
     States Code, is amended--
       (A) by striking subsection (a); and
       (B) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively.
       (2) Chapter analysis.--The analysis for such subchapter (as 
     amended by section 1120 of this Act) is amended by adding at 
     the end the following:

``166. HOV facilities.''.
       (c) Sense of Congress.--It is the sense of Congress that 
     the Secretary and the States should provide additional 
     incentives (including the use of high occupancy vehicle lanes 
     on State and Interstate highways) for the purchase and use of 
     hybrid and other fuel efficient vehicles, which have been 
     proven to minimize air emissions and decrease consumption of 
     fossil fuels.

     SEC. 1122. DEFINITIONS.

       (a) Transportation Enhancement Activity.--Section 
     101(a)(35) of title 23, United States Code, is amended to 
     read as follows:
       ``(35) 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) Inventory, 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.''.
       (b) Advanced Truck Stop Electrification System.--Such 
     section 101(a) is amended by adding at the end the following:
       ``(38) Advanced truck stop electrification system.--The 
     term `advanced truck stop electrification system' means a 
     system that delivers heat, air conditioning, electricity, or 
     communications to a heavy duty vehicle.''.
                     Subtitle B--Congestion Relief

     SEC. 1201. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

       (a) Establishment.--
       (1) In general.--The Secretary shall establish a real-time 
     system management information program to provide, in all 
     States, the capability to monitor, in real-time, the traffic 
     and travel conditions of the major highways of the United 
     States and to share that information to improve the security 
     of the surface transportation system, to address congestion 
     problems, to support improved response to weather events and 
     surface transportation incidents, and to facilitate national 
     and regional highway traveler information.
       (2) Purposes.--The purposes of the real-time system 
     management information program are to--
       (A) establish, in all States, a system of basic real-time 
     information for managing and operating the surface 
     transportation system;
       (B) identify longer range real-time highway and transit 
     monitoring needs and develop plans and strategies for meeting 
     such needs; and
       (C) provide the capability and means to share that data 
     with State and local governments and the traveling public.
       (b) Data Exchange Formats.--Not later than 2 years after 
     the date of enactment of this Act, the Secretary shall 
     establish data exchange formats to ensure that the data 
     provided by highway and transit monitoring systems, including 
     statewide incident reporting systems, can readily be 
     exchanged across jurisdictional boundaries, facilitating 
     nationwide availability of information.
       (c) Regional Intelligent Transportation System 
     Architecture.--
       (1) Addressing information needs.--As State and local 
     governments develop or update regional intelligent 
     transportation system architectures, described in section 
     940.9 of title 23, Code of Federal Regulations, such 
     governments shall explicitly address real-time highway and 
     transit information needs and the systems needed to meet such 
     needs, including addressing coverage, monitoring systems, 
     data fusion and archiving, and methods of exchanging or 
     sharing highway and transit information.
       (2) Data exchange.--States shall incorporate the data 
     exchange formats established by the Secretary under 
     subsection (b) to ensure that the data provided by highway 
     and transit monitoring systems may readily be exchanged with 
     State and local governments and may be made available to the 
     traveling public.
       (d) Eligibility.--Subject to project approval by the 
     Secretary, a State may obligate funds apportioned to the 
     State under sections 104(b)(1), 104(b)(2), and 104(b)(3) of 
     title 23, United States Code, for activities relating to the 
     planning and deployment of real-time monitoring elements that 
     advance the goals and purposes described in subsection (a).
       (e) Limitation on Statutory Construction.--Nothing in this 
     section shall be construed as altering or otherwise affecting 
     the applicability of the requirements of chapter 1 of title 
     23, United States Code (including requirements relating to 
     the eligibility of a project for

[[Page H7058]]

     assistance under the program, the location of the project, 
     and the Federal-share payable on account of the project), to 
     amounts apportioned to a State for a program under section 
     104(b) that are obligated by the State for activities and 
     projects under this section.
       (f) Statewide Incident Reporting System Defined.--In this 
     section, the term ``statewide incident reporting system'' 
     means a statewide system for facilitating the real-time 
     electronic reporting of surface transportation incidents to a 
     central location for use in monitoring the event, providing 
     accurate traveler information, and responding to the incident 
     as appropriate.
                  Subtitle C--Mobility and Efficiency

     SEC. 1301. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

       (a) Findings.--Congress finds the following:
       (1) Under current law, surface transportation programs rely 
     primarily on formula capital apportionments to States.
       (2) Despite the significant increase for surface 
     transportation program funding in the Transportation Equity 
     Act of the 21st Century, current levels of investment are 
     insufficient to fund critical high-cost transportation 
     infrastructure facilities that address critical national 
     economic and transportation needs.
       (3) Critical high-cost transportation infrastructure 
     facilities often include multiple levels of government, 
     agencies, modes of transportation, and transportation goals 
     and planning processes that are not easily addressed or 
     funded within existing surface transportation program 
     categories.
       (4) Projects of national and regional significance have 
     national and regional benefits, including improving economic 
     productivity by facilitating international trade, relieving 
     congestion, and improving transportation safety by 
     facilitating passenger and freight movement.
       (5) The benefits of projects described in paragraph (4) 
     accrue to local areas, States, and the Nation as a result of 
     the effect such projects have on the national transportation 
     system.
       (6) A program dedicated to constructing projects of 
     national and regional significance is necessary to improve 
     the safe, secure, and efficient movement of people and goods 
     throughout the United States and improve the health and 
     welfare of the national economy.
       (b) Establishment of Program.--The Secretary shall 
     establish a program to provide grants to States for projects 
     of national and regional significance.
       (c) Definitions.--In this section, the following 
     definitions apply:
       (1) Eligible project costs.--The term ``eligible project 
     costs'' means the costs of--
       (A) development phase activities, including planning, 
     feasibility analysis, revenue forecasting, environmental 
     review, preliminary engineering and design work, and other 
     preconstruction activities; and
       (B) construction, reconstruction, rehabilitation, and 
     acquisition of real property (including land related to the 
     project and improvements to land), environmental mitigation, 
     construction contingencies, acquisition of equipment, and 
     operational improvements.
       (2) Eligible project.--The term ``eligible project'' means 
     any surface transportation project eligible for Federal 
     assistance under title 23, United States Code, including 
     freight railroad projects and activities eligible under such 
     title.
       (3) State.--The term ``State'' has the meaning such term 
     has in section 101(a) of title 23, United States Code.
       (d) Eligibility.--To be eligible for assistance under this 
     section, a project shall have eligible project costs that are 
     reasonably anticipated to equal or exceed the lesser of--
       (1) $500,000,000; or
       (2) 75 percent of the amount of Federal highway assistance 
     funds apportioned for the most recently completed fiscal year 
     to the State in which the project is located.
       (e) Applications.--Each State seeking to receive a grant 
     under this section for an eligible project shall submit to 
     the Secretary an application in such form and in accordance 
     with such requirements as the Secretary shall establish.
       (f) Competitive Grant Selection and Criteria for Grants.--
       (1) In general.--The Secretary shall--
       (A) establish criteria for selecting among projects that 
     meet the eligibility criteria specified in subsection (d);
       (B) conduct a national solicitation for applications; and
       (C) award grants on a competitive basis.
       (2) Criteria for grants.--The Secretary may approve a grant 
     under this section for a project only if the Secretary 
     determines that the project--
       (A) is based on the results of preliminary engineering;
       (B) is justified based on the ability of the project--
       (i) to generate national economic benefits, including 
     creating jobs, expanding business opportunities, and 
     impacting the gross domestic product;
       (ii) to reduce congestion, including impacts in the State, 
     region, and Nation;
       (iii) to improve transportation safety, including reducing 
     transportation accidents, injuries, and fatalities;
       (iv) to otherwise enhance the national transportation 
     system; and
       (v) to garner support for non-Federal financial commitments 
     and provide evidence of stable and dependable financing 
     sources to construct, maintain, and operate the 
     infrastructure facility; and
       (C) is supported by an acceptable degree of non-Federal 
     financial commitments, including evidence of stable and 
     dependable financing sources to construct, maintain, and 
     operate the infrastructure facility.
       (3) Selection considerations.--In selecting a project under 
     this section, the Secretary shall consider the extent to 
     which the project--
       (A) leverages Federal investment by encouraging non-Federal 
     contributions to the project, including contributions from 
     public-private partnerships;
       (B) uses new technologies, including intelligent 
     transportation systems, that enhance the efficiency of the 
     project; and
       (C) helps maintain or protect the environment.
       (4) Preliminary engineering.--In evaluating a project under 
     paragraph (2)(A), the Secretary shall analyze and consider 
     the results of preliminary engineering for the project.
       (5) Non-federal financial commitment.--
       (A) Evaluation of project.--In evaluating a project under 
     paragraph (2)(C), the Secretary shall require that--
       (i) the proposed project plan provides for the availability 
     of contingency amounts that the Secretary determines to be 
     reasonable to cover unanticipated cost increases; and
       (ii) each proposed non-Federal source of capital and 
     operating financing is stable, reliable, and available within 
     the proposed project timetable.
       (B) Considerations.--In assessing the stability, 
     reliability, and availability of proposed sources of non-
     Federal financing under subparagraph (A), the Secretary shall 
     consider--
       (i) existing financial 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 
     recipient for the proposed project; and
       (iv) the extent to which the project has a non-Federal 
     financial commitment that exceeds the required non-Federal 
     share of the cost of the project.
       (6) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     on the manner in which the Secretary will evaluate and rate 
     the projects based on the results of preliminary engineering, 
     project justification, and the degree of non-Federal 
     financial commitment, as required under this subsection.
       (7) Project evaluation and rating.--
       (A) In general.--A proposed project may advance from 
     preliminary engineering to final design and construction only 
     if the Secretary finds that the project meets the 
     requirements of this subsection and there is a reasonable 
     likelihood that the project will continue to meet such 
     requirements.
       (B) Evaluation and rating.--In making such findings, the 
     Secretary shall evaluate and rate the project as ``highly 
     recommended'', ``recommended'', or ``not recommended'' based 
     on the results of preliminary engineering, the project 
     justification criteria, and the degree of non-Federal 
     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 (6).
       (g) Letters of Intent and Full Funding Grant Agreements.--
       (1) Letter of intent.--
       (A) In general.--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) Notification.--At least 60 days before issuing a letter 
     under subparagraph (A) or entering into a full funding grant 
     agreement, the Secretary shall notify in writing the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Environment and 
     Public Works of the Senate 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) Not an obligation.--The issuance of a letter is deemed 
     not to be an obligation under sections 1108(c), 1108(d), 
     1501, and 1502(a) of title 31, United States Code, or an 
     administrative commitment.
       (D) Obligation or commitment.--An obligation or 
     administrative commitment may be made only when contract 
     authority is allocated to a project.
       (2) Full funding grant agreement.--
       (A) In general.--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 
     subsection (f)(7).
       (B) Terms.--If the Secretary makes 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;
       (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 laws of the United States.
       (C) Agreement.--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. 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

[[Page H7059]]

     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) Amounts.--The total estimated amount of future 
     obligations of the Government and contingent commitments to 
     incur obligations covered by all outstanding letters of 
     intent and full funding grant agreements may be not more than 
     the greater of the amount authorized to carry out this 
     section or an amount equivalent to the last 2 fiscal years of 
     funding authorized to carry out this section 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 may be not more than a 
     limitation specified in law.
       (h) Grant Requirements.--
       (1) In general.--A grant for a project under this section 
     shall be subject to all of the requirements of title 23, 
     United States Code.
       (2) Other terms and conditions.--The Secretary shall 
     require that all grants under this section be subject to all 
     terms, conditions, and requirements that the Secretary 
     decides are necessary or appropriate for purposes of this 
     section, including requirements for the disposition of net 
     increases in value of real property resulting from the 
     project assisted under this section.
       (i) Government's Share of Project Cost.--Based on 
     engineering studies, studies of economic feasibility, and 
     information on the expected use of equipment or facilities, 
     the Secretary shall estimate the cost of a project receiving 
     assistance under this section. A grant for the project is for 
     80 percent of the project cost, unless the grant recipient 
     requests a lower grant percentage. A refund or reduction of 
     the remainder may be made only if a refund of a proportional 
     amount of the grant of the Government is made at the same 
     time.
       (j) Fiscal Capacity Considerations.--If the Secretary gives 
     priority consideration to financing projects that include 
     more than the non-Government share required under subsection 
     (i) the Secretary shall give equal consideration to 
     differences in the fiscal capacity of State and local 
     governments.
       (k) Reports.--
       (1) Annual report.--Not later than the first Monday in 
     February of each year, the Secretary shall submit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Environment and 
     Public Works of the Senate a report that includes a proposal 
     on the allocation of amounts to be made available to finance 
     grants under this section.
       (2) Recommendations on funding.--The annual report under 
     this paragraph shall include evaluations and ratings, as 
     required under subsection (f). The report shall also include 
     recommendations of projects for funding based on the 
     evaluations and ratings and on existing commitments and 
     anticipated funding levels for the next 3 fiscal years and 
     for the next 10 fiscal years based on information currently 
     available to the Secretary.
       (l) Applicability of Title 23.--Funds made available to 
     carry out this section shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; except that such 
     funds shall not be transferable and shall remain available 
     until expended and the Federal share of the cost of a project 
     under this section shall be as provided in this section.
       (m) Designated Projects.--Notwithstanding any other 
     provision of this section, the Secretary shall allocate for 
     each of fiscal years 2005 through 2009, from funds made 
     available to carry out this section, 20 percent of the 
     following amounts for grants to carry out the following 
     projects under this section:

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[[Page H7061]]

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[[Page H7062]]

     SEC. 1302. NATIONAL CORRIDOR INFRASTRUCTURE IMPROVEMENT 
                   PROGRAM.

       (a) In General.--The Secretary shall establish and 
     implement a program to make allocations to States for highway 
     construction projects in corridors of national significance 
     to promote economic growth and international or interregional 
     trade pursuant to the selection factors provided in this 
     section. A State must submit an application to the Secretary 
     in order to receive an allocation under this section.
       (b) Selection Process.--
       (1) Priority.--In the selection process under this section, 
     the Secretary shall give priority to projects in corridors 
     that are a part of, or will be designated as part of, the 
     Dwight D. Eisenhower National System of Interstate and 
     Defense Highways after completion of the work described in 
     the application received by the Secretary and to any project 
     that will be completed within 5 years of the date of the 
     allocation of funds for the project.
       (2) Selection factors.--In making allocations under this 
     section, the Secretary shall consider the following factors:
       (A) The extent to which the corridor provides a link 
     between 2 existing segments of the Interstate System.
       (B) The extent to which the project will facilitate major 
     multistate or regional mobility and economic growth and 
     development in areas underserved by existing highway 
     infrastructure.
       (C) The extent to which commercial vehicle traffic in the 
     corridor--
       (i) has increased since the date of enactment of the North 
     American Free Trade Agreement Implementation Act (16 U.S.C. 
     4401 et seq.); and
       (ii) is projected to increase in the future.
       (D) The extent to which international truck-borne 
     commodities move through the corridor.
       (E) The extent to which the project will make improvements 
     to an existing segment of the Interstate System that will 
     result in a decrease in congestion.
       (F) The reduction in commercial and other travel time 
     through a major freight corridor expected as a result of the 
     project.
       (G) The value of the cargo carried by commercial vehicle 
     traffic in the corridor and the economic costs arising from 
     congestion in the corridor.
       (H) The extent of leveraging of Federal funds provided to 
     carry out this section, including--
       (i) use of innovative financing;
       (ii) combination with funding provided under other sections 
     of this Act and title 23, United States Code; and
       (iii) combination with other sources of Federal, State, 
     local, or private funding.
       (c) Applicability of Title 23.--Funds made available by 
     section 1101(a)(10) of this Act to carry out this section 
     shall be available for obligation in the same manner as if 
     such funds were apportioned under chapter 1 of title 23, 
     United States Code; except that such funds shall remain 
     available until expended, and the Federal share of the cost 
     of a project under this section shall be determined in 
     accordance with section 120 of such title.
       (d) State Defined.--In this section, the term ``State'' has 
     the meaning such term has in section 101(a) of title 23, 
     United States Code.
       (e) Designated Projects.--The Secretary shall allocate for 
     each of fiscal years 2005 through 2009, from funds made 
     available to carry out this section, 20 percent of the 
     following amounts for grants to carry out the following 
     projects under this section:

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[[Page H7064]]

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[[Page H7065]]

     SEC. 1303. COORDINATED BORDER INFRASTRUCTURE PROGRAM.

       (a) General Authority.--The Secretary shall implement a 
     coordinated border infrastructure program under which the 
     Secretary shall distribute funds to border States to improve 
     the safe movement of motor vehicles at or across the border 
     between the United States and Canada and the border between 
     the United States and Mexico.
       (b) Eligible Uses.--Subject to subsection (d), a State may 
     use funds apportioned under this section only for--
       (1) improvements in a border region to existing 
     transportation and supporting infrastructure that facilitate 
     cross-border motor vehicle and cargo movements;
       (2) construction of highways and related safety and safety 
     enforcement facilities in a border region that facilitate 
     motor vehicle and cargo movements related to international 
     trade;
       (3) operational improvements in a border region, including 
     improvements relating to electronic data interchange and use 
     of telecommunications, to expedite cross border motor vehicle 
     and cargo movement;
       (4) modifications to regulatory procedures to expedite safe 
     and efficient cross border motor vehicle and cargo movements; 
     and
       (5) international coordination of transportation planning, 
     programming, and border operation with Canada and Mexico 
     relating to expediting cross border motor vehicle and cargo 
     movements.
       (c) Apportionment of Funds.--On October 1 of each fiscal 
     year, the Secretary shall apportion among border States sums 
     authorized to be appropriated to carry out this section for 
     such fiscal year as follows:
       (1) 20 percent in the ratio that--
       (A) the total number of incoming commercial trucks that 
     pass through the land border ports of entry within the 
     boundaries of a border State, as determined by the Secretary; 
     bears to
       (B) the total number of incoming commercial trucks that 
     pass through such ports of entry within the boundaries of all 
     the border States, as determined by the Secretary.
       (2) 30 percent in the ratio that--
       (A) the total number of incoming personal motor vehicles 
     and incoming buses that pass through land border ports of 
     entry within the boundaries of a border State, as determined 
     by the Secretary; bears to
       (B) the total number of incoming personal motor vehicles 
     and incoming buses that pass through such ports of entry 
     within the boundaries of all the border States, as determined 
     by the Secretary.
       (3) 25 percent in the ratio that--
       (A) the total weight of incoming cargo by commercial trucks 
     that pass through land border ports of entry within the 
     boundaries of a border State, as determined by the Secretary; 
     bears to
       (B) the total weight of incoming cargo by commercial trucks 
     that pass through such ports of entry within the boundaries 
     of all the border States, as determined by the Secretary.
       (4) 25 percent of the ratio that--
       (A) the total number of land border ports of entry within 
     the boundaries of a border State, as determined by the 
     Secretary; bears to
       (B) the total number of land border ports of entry within 
     the boundaries of all the border States, as determined by the 
     Secretary.
       (d) Projects in Canada or Mexico.--A project in Canada or 
     Mexico, proposed by a border State to directly and 
     predominantly facilitate cross-border motor vehicle and cargo 
     movements at an international port of entry into the border 
     region of the State, may be constructed using funds 
     apportioned to the State under this section if, before 
     obligation of those funds, Canada or Mexico, or the political 
     subdivision of Canada or Mexico that is responsible for the 
     operation of the facility to be constructed, provides 
     assurances satisfactory to the Secretary that any facility 
     constructed under this subsection will be--
       (1) constructed in accordance with standards equivalent to 
     applicable standards in the United States; and
       (2) properly maintained and used over the useful life of 
     the facility for the purpose for which the Secretary is 
     allocating such funds to the project.
       (e) Transfer of Funds to the General Services 
     Administration.--
       (1) State funds.--At the request of a border State, funds 
     apportioned to the State under this section may be 
     transferred to the General Services Administration for the 
     purpose of funding 1 or more projects described in subsection 
     (b) if--
       (A) the Secretary determines, after consultation with the 
     transportation department of the border State, that the 
     General Services Administration should carry out the project; 
     and
       (B) the General Services Administration agrees to accept 
     the transfer of, and to administer, those funds in accordance 
     with this section.
       (2) Non-federal share.--
       (A) In general.--A border State that makes a request under 
     paragraph (1) shall provide directly to the General Services 
     Administration, for each project covered by the request, the 
     non-Federal share of the cost of the project.
       (B) No augmentation of appropriations.--Funds provided by a 
     border State under subparagraph (A)--
       (i) shall not be considered to be an augmentation of the 
     appropriations made available to the General Services 
     Administration; and
       (ii) shall be--

       (I) administered, subject to paragraph (1)(B), in 
     accordance with the procedures of the General Services 
     Administration; but
       (II) available for obligation in the same manner as if the 
     funds were apportioned under chapter 1 of title 23, United 
     States Code.

       (3) Obligation authority.--Obligation authority shall be 
     transferred to the General Services Administration for a 
     project in the same manner and amount as the funds provided 
     for the project under paragraph (1).
       (4) Limitation on transfer of funds.--No State may transfer 
     to the General Services Administration under this subsection 
     an amount that is more than the lesser of--
       (A) 15 percent of the aggregate amount of funds apportioned 
     to the State under this section for such fiscal year; or
       (B) $5,000,000.
       (f) Applicability of Title 23.--Funds made available to 
     carry out this section shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; except that, 
     subject to subsection (e), such funds shall not be 
     transferable and shall remain available until expended, and 
     the Federal share of the cost of a project under this section 
     shall be determined in accordance with section 120 of such 
     title.
       (g) Definitions.--In this section, the following 
     definitions apply:
       (1) Border region.--The term ``border region'' means any 
     portion of a border State within 100 miles of an 
     international land border with Canada or Mexico.
       (2) Border state.--The term ``border State'' means any 
     State that has an international land border with Canada or 
     Mexico.
       (3) Commercial truck.--The term ``commercial truck'' means 
     a commercial motor vehicle as defined in section 31301(4) 
     (other than subparagraph (B)) of title 49, United States 
     Code.
       (4) Motor vehicle.--The term ``motor vehicle'' has the 
     meaning such term has under section 101(a) of title 23, 
     United States Code.
       (5) State.--The term ``State'' has the meaning such term 
     has in section 101(a) of such title 23.

     SEC. 1304. HIGH PRIORITY CORRIDORS ON THE NATIONAL HIGHWAY 
                   SYSTEM.

       (a) Evacuation Routes.--Section 1105(b) of the Intermodal 
     Surface Transportation Efficiency Act of 1991 (Public Law 
     102-240; 105 Stat. 2032) is amended in the first sentence by 
     inserting ``and evacuation routes'' after ``corridors'' the 
     first place it appears.
       (b) Corridors.--Section 1105(c) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (105 Stat. 2032) is 
     amended--
       (1) by striking paragraph (14) and inserting the following:
       ``(14) Heartland Expressway from Denver, Colorado, through 
     Scottsbluff, Nebraska, to Rapid City, South Dakota as 
     follows:
       ``(A) In the State of Colorado, the Heartland Expressway 
     Corridor shall generally follow--
       ``(i) Interstate 76 from Denver to Brush; and
       ``(ii) Colorado Highway 71 from Limon to the border between 
     the States of Colorado and Nebraska.
       ``(B) In the State of Nebraska, the Heartland Expressway 
     Corridor shall generally follow--
       ``(i) Nebraska Highway 71 from the border between the 
     States of Colorado and Nebraska to Scottsbluff;
       ``(ii) United States Route 26 from Scottsbluff to the 
     intersection with State Highway L62A;
       ``(iii) State Highway L62A from the intersection with 
     United States Route 26 to United States Route 385 north of 
     Bridgeport;
       ``(iv) United States Route 385 to the border between the 
     States of Nebraska and South Dakota; and
       ``(v) United States Highway 26 from Scottsbluff to the 
     border of the States of Nebraska and Wyoming.
       ``(C) In the State of Wyoming, the Heartland Expressway 
     Corridor shall generally follow United States Highway 26 from 
     the border of the States of Nebraska and Wyoming to the 
     termination at Interstate 25 at Interchange number 94.
       ``(D) In the State of South Dakota, the Heartland 
     Expressway Corridor shall generally follow--
       ``(i) United States Route 385 from the border between the 
     States of Nebraska and South Dakota to the intersection with 
     State Highway 79; and
       ``(ii) State Highway 79 from the intersection with United 
     States Route 385 to Rapid City.'';
       (2) in paragraph (23) by inserting before the period at the 
     end the following: ``and the connection from Wichita, Kansas, 
     to Sioux City, Iowa, which includes I-135 from Wichita, 
     Kansas to Salina, Kansas, United States Route 81 from Salina, 
     Kansas, to Norfolk, Nebraska, Nebraska State Route 35 from 
     Norfolk, Nebraska, to South Sioux City, Nebraska, and the 
     connection to I-29 in Sioux City, Iowa'';
       (3) in paragraph (33) by striking ``I-395'' and inserting 
     ``and including the I-395 corridor'';
       (4) by striking paragraph (34) and inserting the following:
       ``(34) The Alameda Corridor-East and Southwest Passage, 
     California. The Alameda Corridor-East is generally described 
     as the corridor from East Los Angeles (terminus of Alameda 
     Corridor) through Los Angeles, Orange, San Bernardino, and 
     Riverside Counties, to termini at Barstow in San Bernardino 
     County and Coachella in Riverside County. The Southwest 
     Passage shall follow I-10 from San Bernardino to the Arizona 
     State line.'';
       (5) by adding at the end the following:
       ``(46) Interstate Route 710 between the terminus at Long 
     Beach, California, to California State Route 60.
       ``(47) Interstate Route 87 from the Quebec border to New 
     York City.
       ``(48) The Route 50 High Plains Corridor along the United 
     States Route 50 corridor from Newton, Kansas, to Pueblo, 
     Colorado.
       ``(49) The Atlantic Commerce Corridor on Interstate Route 
     95 from Jacksonville, Florida, to Miami, Florida.
       ``(50) The East-West Corridor commencing in Watertown, New 
     York, continuing northeast through New York, Vermont, New 
     Hampshire, and Maine, and terminating in Calais, Maine.
       ``(51) The SPIRIT Corridor on United States Route 54 from 
     El Paso, Texas, through New

[[Page H7066]]

     Mexico, Texas, and Oklahoma to Wichita, Kansas.
       ``(52) The route in Arkansas running south of and parallel 
     to Arkansas State Highway 226 from the relocation of United 
     States Route 67 to the vicinity of United States Route 49 and 
     United States Route 63.
       ``(53) United States Highway Route 6 from Interstate Route 
     70 to Interstate Route 15, Utah.
       ``(54) The California Farm-to-Market Corridor, California 
     State Route 99 from south of Bakersfield to Sacramento, 
     California.
       ``(55) In Texas, Interstate Route 20 from Interstate Route 
     35E in Dallas County, east to the intersection of Interstate 
     Route 635, north to the intersection of Interstate Route 30, 
     northeast through Texarkana to Little Rock, Arkansas, 
     Interstate Route 40 northeast from Little Rock east to the 
     proposed Interstate Route 69 corridor.
       ``(56) In the State of Texas, the La Entrada al Pacifico 
     Corridor consisting of the following highways and any portion 
     of a highway in a corridor on 2 miles of either side of the 
     center line of the highway:
       ``(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 by 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.
       ``(F) United States Route 67 from Fort Stockton to 
     Presidio, including those portions that parallel Interstate 
     Route 10 and United States Route 90.
       ``(57) United States Route 41 corridor between Interstate 
     Route 94 via Interstate Route 894 and Highway 45 near 
     Milwaukee and Interstate Route 43 near Green Bay in the State 
     of Wisconsin.
       ``(58) The Theodore Roosevelt Expressway from Rapid City, 
     South Dakota, north on United States Route 85 to Williston, 
     North Dakota, west on United States Route 2 to Culbertson, 
     Montana, and north on Montana Highway 16 to the international 
     border with Canada at the port of Raymond, Montana.
       ``(59) The Central North American Trade Corridor from the 
     border between North Dakota and South Dakota, north on United 
     States Route 83 through Bismark and Minot, North Dakota, to 
     the international border with Canada.
       ``(60) The Providence Beltline Corridor beginning at 
     Interstate Route 95 in the vicinity of Hope Valley, Rhode 
     Island, traversing eastwardly intersecting and merging into 
     Interstate Route 295, continuing northeastwardly along 
     Interstate Route 95, and terminating at the Massachusetts 
     border, and including the western bypass of Providence, Rhode 
     Island, from Interstate Route 295 to the Massachusetts 
     border.
       ``(61) In the State of Missouri, the corridors consisting 
     of the following highways:
       ``(A) Interstate Route 70, from Interstate Route 29/35 to 
     United States Route 61/Avenue of the Saints.
       ``(B) Interstate Route 72/United States Route 36, from the 
     intersection with Interstate Route 29 to United States Route 
     61/Avenue of the Saints.
       ``(C) United States Route 67, from Interstate Route 55 to 
     the Arkansas State line.
       ``(D) United States Route 65, from United States Route 36/
     Interstate Route 72 to the East-West TransAmerica corridor, 
     at the Arkansas State line.
       ``(E) United States Route 63, from United States Route 36 
     and the proposed Interstate Route 72 to the East-West 
     TransAmerica corridor, at the Arkansas State line.
       ``(F) United States Route 54, from the Kansas State line to 
     United States Route 61/Avenue of the Saints.
       ``(62) The Georgia Developmental Highway System Corridors 
     identified in section 32-4-22 of the Official Code of 
     Georgia, Annotated.
       ``(63) The Liberty Corridor, a corridor in an area 
     encompassing very critical and significant transportation 
     infrastructure providing regional, national, and 
     international access through the State of New Jersey, 
     including Interstate Routes 95, 80, 287, and 78, and United 
     States Routes 1, 3, 9, 17, and 46, and portways and 
     connecting infrastructure.
       ``(64) The corridor in an area of passage in the State of 
     New Jersey serving significant interstate and regional 
     traffic, located near the cities of Camden, New Jersey, and 
     Philadelphia, Pennsylvania, and including Interstate Route 
     295, United States Route 42, United States Route 130, and 
     Interstate Route 676.
       ``(65) The Interstate Route 95 Corridor beginning at the 
     New York State line and continuing through Connecticut to the 
     Rhode Island State line.
       ``(66) The Interstate Route 91 Corridor from New Haven, 
     Connecticut, to the Massachusetts State line.
       ``(67) The Fairbanks-Yukon International Corridor 
     consisting of the portion of the Alaska Highway from the 
     international border with Canada to the Richardson Highway, 
     and the Richardson Highway from its junction with the Alaska 
     Highway to Fairbanks, Alaska.
       ``(68) The Washoe County corridor, along Interstate Route 
     580/United States Route 95/United States Route 95A, from 
     Reno, Nevada, to Las Vegas, Nevada.
       ``(69) The Cross Valley Connector connecting Interstate 
     Route 5 and State Route 14, Santa Clarita Valley, California.
       ``(70) The Economic Lifeline corridor, along Interstate 
     Route 15 and Interstate Route 40, California, Arizona, and 
     Nevada, including Interstate Route 215 South from near San 
     Bernadino, California, to Riverside, California, and State 
     Route 91 from Riverside, California, to the intersection with 
     Interstate Route 15 near Corona, California.
       ``(71) The High Desert Corridor/E-220 from Los Angeles, 
     California, to Las Vegas, Nevada, via Palmdale and 
     Victorville, California.
       ``(72) The North-South corridor, along Interstate Route 49 
     North, from Kansas City, Missouri, to Shreveport, Louisiana.
       ``(73) The Louisiana Highway corridor, along Louisiana 
     Highway 1, from Grand Isle, Louisiana, to the intersection 
     with United States Route 90.
       ``(74) The portion of United States Route 90 from 
     Interstate Route 49 in Lafayette, Louisiana, to Interstate 
     Route 10 in New Orleans, Louisiana.
       ``(75) The Louisiana 28 corridor from Fort Polk to 
     Alexandria, Louisiana.
       ``(76) The portion of Interstate Route 75 from Toledo, 
     Ohio, to Cincinnati, Ohio.
       ``(77) The portion of United States Route 24 from the 
     Indiana/Ohio State line to Toledo, Ohio.
       ``(78) The portion of Interstate Route 71 from Cincinnati, 
     Ohio, to Cleveland, Ohio.
       ``(79) Interstate Route 376 from the Pittsburgh Interchange 
     (I/C No. 56) of the Pennsylvania Turnpike, westward on 
     Interstate Route 279, United States Route 22, United States 
     Route 30, and Pennsylvania Route 60, continuing past the 
     Pittsburgh International Airport on Turnpike Route 60, to the 
     Pennsylvania Turnpike (Interstate Route 76), Interchange 10, 
     and continuing north on Pennsylvania Turnpike Route 60 and on 
     United States Route 422 to Interstate Route 80.
       ``(80) The Intercounty Connector, a new east-west 
     multimodal highway between Interstate Route 270 and 
     Interstate Route 95/United States Route 1 in Montgomery and 
     Prince George's Counties, Maryland.''; and
       (6) by aligning paragraph (45) with paragraph (46) (as 
     added by paragraph (5)).
       (c) Interstate Routes.--Section 1105(e)(5) of the 
     Intermodal Surface Transporation Efficiency Act of 1991 is 
     amended--
       (1) in subparagraph (A) by striking ``and subsection 
     (c)(45)'' and inserting ``subsection (c)(45), subsection 
     (c)(54), and subsection (c)(57)'';
       (2) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (C) through (E); and
       (3) by inserting after subparagraph (A) the following:
       ``(B) Interstate route 376.--
       ``(i) Designation of interstate route 376.--

       ``(I) In general.--The routes referred to in subsection 
     (c)(79), except the portion of Pennsylvania Turnpike Route 60 
     and United States Route 422 between Pennsylvania Turnpike 
     Interchange 10 and Interstate Route 80, shall be designated 
     as Interstate Route 376.
       ``(II) Signs.--The State of Pennsylvania shall have 
     jurisdiction over the highways described in subclause (I) 
     (except Pennsylvania Turnpike Route 60) and erect signs in 
     accordance with Interstate signing criteria that identify the 
     routes described in subclause (I) as Interstate Route 376.
       ``(III) Assistance from secretary.--The Secretary shall 
     assist the State of Pennsylvania in carrying out, not later 
     than December 31, 2008, an activity under subclause (II) 
     relating to Interstate Route 376 and in complying with 
     sections 109 and 139 of title 23, United States Code.

       ``(ii) Other segments.--The segment of the route referred 
     to in subsection (c)(79) located between the Pennsylvania 
     Turnpike, Interchange 10, and Interstate Route 80 may be 
     signed as Interstate Route 376 under clause (i)(II) if that 
     segment meets the criteria under sections 109 and 139 of 
     title 23, United States Code.''.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out, in accordance with title 23, 
     United States Code, projects on corridors identified in 
     section 1105(c) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2032) such sums as may be 
     necessary.

     SEC. 1305. TRUCK PARKING FACILITIES.

       (a) Establishment.--In cooperation with appropriate State, 
     regional, and local governments, the Secretary shall 
     establish a pilot program to address the shortage of long-
     term parking for commercial motor vehicles on the National 
     Highway System.
       (b) Allocation of Funds.--
       (1) In general.--The Secretary shall allocate funds made 
     available to carry out this section among States, 
     metropolitan planning organizations, and local governments.
       (2) Applications.--To be eligible for an allocation under 
     this section, a State (as defined in section 101(a) of title 
     23, United States Code), metropolitan planning organization, 
     or local government shall submit to the Secretary an 
     application at such time and containing such information as 
     the Secretary may require.
       (3) Eligible projects.--Funds allocated under this 
     subsection shall be used by the recipient for projects 
     described in an application approved by the Secretary. Such 
     projects shall serve the National Highway System and may 
     include the following:
       (A) Constructing safety rest areas (as defined in section 
     120(c) of title 23, United States Code) that include parking 
     for commercial motor vehicles.
       (B) Constructing commercial motor vehicle parking 
     facilities adjacent to commercial truck stops and travel 
     plazas.
       (C) Opening existing facilities to commercial motor vehicle 
     parking, including inspection and weigh stations and park-
     and-ride facilities.

[[Page H7067]]

       (D) Promoting the availability of publicly or privately 
     provided commercial motor vehicle parking on the National 
     Highway System using intelligent transportation systems and 
     other means.
       (E) Constructing turnouts along the National Highway System 
     for commercial motor vehicles.
       (F) Making capital improvements to public commercial motor 
     vehicle parking facilities currently closed on a seasonal 
     basis to allow the facilities to remain open year-round.
       (G) Improving the geometric design of interchanges on the 
     National Highway System to improve access to commercial motor 
     vehicle parking facilities.
       (4) Priority.--In allocating funds made available to carry 
     out this section, the Secretary shall give priority to 
     applicants that--
       (A) demonstrate a severe shortage of commercial motor 
     vehicle parking capacity in the corridor to be addressed;
       (B) have consulted with affected State and local 
     governments, community groups, private providers of 
     commercial motor vehicle parking, and motorist and trucking 
     organizations; and
       (C) demonstrate that their proposed projects are likely to 
     have positive effects on highway safety, traffic congestion, 
     or air quality.
       (c) Report to Congress.--Not later than 3 years after the 
     date of enactment of this Act, the Secretary shall submit to 
     Congress a report on the results of the pilot program.
       (d) Funding.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $6,250,000 for each of 
     fiscal years 2006 through 2009.
       (2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code; except that such funds shall 
     not be transferable and shall remain available until 
     expended, and the Federal share of the cost of a project 
     under this section shall be determined in accordance with 
     sections 120(b) and 120(c) of such title.
       (e) Treatment of Projects.--Notwithstanding any other 
     provision of law, projects funded under this section shall be 
     treated as projects on a Federal-aid system under chapter 1 
     of title 23, United States Code.

     SEC. 1306. FREIGHT INTERMODAL DISTRIBUTION PILOT GRANT 
                   PROGRAM.

       (a) In General.--The Secretary shall establish and 
     implement a freight intermodal distribution pilot grant 
     program.
       (b) Purposes.--The purposes of the program established 
     under subsection (a) shall be for the Secretary to make 
     grants to States--
       (1) to facilitate and support intermodal freight 
     transportation initiatives at the State and local levels to 
     relieve congestion and improve safety; and
       (2) to provide capital funding to address infrastructure 
     and freight distribution needs at inland ports and intermodal 
     freight facilities.
       (c) Eligible Projects.--Projects for which grants may be 
     made under this section shall help relieve congestion, 
     improve transportation safety, facilitate international 
     trade, and encourage public-private partnership and may 
     include projects for the development and construction of 
     intermodal freight distribution and transfer facilities at 
     inland ports.
       (d) Selection Process.--
       (1) Applications.--A State (as defined in section 101(a) of 
     title 23, United States Code) shall submit for approval by 
     the Secretary an application for a grant under this section 
     containing such information as the Secretary may require to 
     receive such a grant.
       (2) Priority.--In selecting projects for grants, the 
     Secretary shall give priority to projects that will--
       (A) reduce congestion into and out of international ports 
     located in the United States;
       (B) demonstrate ways to increase the likelihood that 
     freight container movements involve freight containers 
     carrying goods; and
       (C) establish or expand intermodal facilities that 
     encourage the development of inland freight distribution 
     centers.
       (3) Designated projects.--Subject to the provisions of this 
     section, the Secretary shall allocate for each of fiscal 
     years 2005 through 2009, from funds made available to carry 
     out this section, 20 percent of the following amounts for 
     grants to carry out the following projects under this 
     section:
       (A) Short-haul intermodal projects, Oregon, $5,000,000.
       (B) The Georgia Port Authority, $5,000,000.
       (C) The ports of Los Angeles and Long Beach, California, 
     $5,000,000.
       (D) Fairbanks, Alaska, $5,000,000.
       (E) Charlotte Douglas International Airport Freight 
     Intermodal Facility, North Carolina, $5,000,000.
       (F) South Piedmont Freight Intermodal Center, North 
     Carolina, $5,000,000.
       (e) Use of Grant Funds.--Funds made available to a 
     recipient of a grant under this section shall be used by the 
     recipient for the project described in the application of the 
     recipient approved by the Secretary.
       (f) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the pilot program carried out 
     under this section.
       (g) Funding.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $6,000,000 for each of 
     fiscal years 2005 through 2009.
       (2) Contract authority.--Funds authorized by this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code; except that such funds shall 
     not be transferable and shall remain available until 
     expended, and the Federal share of the cost of a project 
     under this section shall be determined in accordance with 
     section 120 of such title.
       (h) Treatment of Projects.--Notwithstanding any other 
     provision of law, projects for which grants are made under 
     this section shall be treated as projects on a Federal-aid 
     system under chapter 1 of title 23, United States Code.

     SEC. 1307. DEPLOYMENT OF MAGNETIC LEVITATION TRANSPORTATION 
                   PROJECTS.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Eligible project costs.--The term ``eligible project 
     costs''--
       (A) means the capital cost of the fixed guideway 
     infrastructure of a MAGLEV project, including land, piers, 
     guideways, propulsion equipment and other components attached 
     to guideways, power distribution facilities (including 
     substations), control and communications facilities, access 
     roads, and storage, repair, and maintenance facilities, but 
     not including costs incurred for a new station; and
       (B) includes the costs of preconstruction planning 
     activities.
       (2) Full project costs.--The term ``full project costs'' 
     means the total capital costs of a MAGLEV project, including 
     eligible project costs and the costs of stations, vehicles, 
     and equipment.
       (3) MAGLEV.--The term ``MAGLEV'' means transportation 
     systems employing magnetic levitation that would be capable 
     of safe use by the public at a speed in excess of 240 miles 
     per hour.
       (4) State.--The term ``State'' has the meaning such term 
     has under section 101(a) of title 23, United States Code.
       (b) In General.--
       (1) Assistance for eligible projects.--The Secretary shall 
     make available financial assistance to pay the Federal share 
     of full project costs of eligible projects authorized by this 
     section.
       (2) Use of assistance.--Financial assistance provided under 
     paragraph (1) shall be used only to pay eligible project 
     costs of projects authorized by this section.
       (3) Applicability of other laws.--Financial assistance made 
     available under this section, and projects assisted with such 
     assistance, shall be subject to section 5333(a) of title 49, 
     United States Code.
       (c) Project Eligibility.--To be eligible to receive 
     financial assistance under subsection (b), a project shall--
       (1) involve a segment or segments of a high-speed ground 
     transportation corridor;
       (2) result in an operating transportation facility that 
     provides a revenue producing service; and
       (3) be approved by the Secretary based on an application 
     submitted to the Secretary by a State or authority designated 
     by 1 or more States.
       (d) Allocation.--Of the amounts made available to carry out 
     this section for a fiscal year, the Secretary shall allocate 
     50 percent for the MAGLEV project between Las Vegas and 
     Primm, Nevada, and 50 percent for a MAGLEV project located 
     east of the Mississippi River.

     SEC. 1308. DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM.

       (a) In General.--The Secretary shall carry out a program in 
     the 8 States comprising the Delta Region (Alabama, Arkansas, 
     Illinois, Kentucky, Louisiana, Mississippi, Missouri, and 
     Tennessee) 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 in a Delta Region State 
     may receive and administer funds provided under the program.
       (c) Eligible Activities.--The Secretary shall make 
     allocations under the program for multistate highway 
     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 sections 134 and 135 of title 23, United States 
     Code.
       (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 under the authority of the Delta Regional 
     Authority; and
       (B) on a Federal-aid highway;
       (2) endorsement of the project by the State department of 
     transportation; and
       (3) evidence of the ability of the recipient of funds 
     provided under the program 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 natural disasters or 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 subsection may be 
     applied to the non-Federal share of the project required by 
     section 120 of title 23, United States Code.

[[Page H7068]]

       (h) Funding.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $10,000,000 for each of 
     fiscal years 2006 through 2009.
       (2) Contract authority.--Funds made available to carry out 
     this section shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23, United States Code; except that such funds shall 
     not be transferable and shall remain available until 
     expended.

     SEC. 1309. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM 
                   AXLE WEIGHT RESTRICTIONS.

       Section 1023(h)(1) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (23 U.S.C. 127 note; 106 Stat. 1552) 
     is amended by striking ``2005'' and inserting ``2009''.

     SEC. 1310. INTERSTATE OASIS PROGRAM.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this section, in consultation with the States 
     and other interested parties, the Secretary shall--
       (1) establish an interstate oasis program; and
       (2) after providing an opportunity for public comment, 
     develop standards for designating, as an interstate oasis, a 
     facility that--
       (A) offers--
       (i) products and services to the public;
       (ii) 24-hour access to restrooms; and
       (iii) parking for automobiles and heavy trucks; and
       (B) meets other standards established by the Secretary.
       (b) Standards for Designation.--The standards for 
     designation under subsection (a) shall include standards 
     relating to--
       (1) the appearance of a facility; and
       (2) the proximity of the facility to the Dwight D. 
     Eisenhower National System of Interstate and Defense 
     Highways.
       (c) Eligibility for Designation.--If a State (as defined in 
     section 101(a) of title 23, United States Code) elects to 
     participate in the interstate oasis program, any facility 
     meeting the standards established by the Secretary shall be 
     eligible for designation under this section.
       (d) Logo.--The Secretary shall design a logo to be 
     displayed by a facility designated under this section.
                       Subtitle D--Highway Safety

     SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

       (a) Safety Improvement.--
       (1) In general.--Section 148 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 148. Highway safety improvement program

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) High risk rural road.--The term `high risk rural 
     road' means any roadway functionally classified as a rural 
     major or minor collector or a rural local road--
       ``(A) on which the accident rate for fatalities and 
     incapacitating injuries exceeds the statewide average for 
     those functional classes of roadway; or
       ``(B) that will likely have increases in traffic volume 
     that are likely to create an accident rate for fatalities and 
     incapacitating injuries that exceeds the statewide average 
     for those functional classes of roadway.
       ``(2) Highway safety improvement program.--The term 
     `highway safety improvement program' means the program 
     carried out under this section.
       ``(3) Highway safety improvement project.--
       ``(A) In general.--The term `highway safety improvement 
     project' means a project described in the State strategic 
     highway safety plan that--
       ``(i) corrects or improves a hazardous road location or 
     feature; or
       ``(ii) addresses a highway safety problem.
       ``(B) Inclusions.--The term `highway safety improvement 
     project' includes a project for one or more of the following:
       ``(i) An intersection safety improvement.
       ``(ii) Pavement and shoulder widening (including addition 
     of a passing lane to remedy an unsafe condition).
       ``(iii) Installation of rumble strips or another warning 
     device, if the rumble strips or other warning devices do not 
     adversely affect the safety or mobility of bicyclists, 
     pedestrians, and the disabled.
       ``(iv) Installation of a skid-resistant surface at an 
     intersection or other location with a high frequency of 
     accidents.
       ``(v) An improvement for pedestrian or bicyclist safety or 
     safety of the disabled.
       ``(vi) Construction of any project for the elimination of 
     hazards at a railway-highway crossing that is eligible for 
     funding under section 130, including the separation or 
     protection of grades at railway-highway crossings.
       ``(vii) Construction of a railway-highway crossing safety 
     feature, including installation of protective devices.
       ``(viii) The conduct of a model traffic enforcement 
     activity at a railway-highway crossing.
       ``(ix) Construction of a traffic calming feature.
       ``(x) Elimination of a roadside obstacle.
       ``(xi) Improvement of highway signage and pavement 
     markings.
       ``(xii) Installation of a priority control system for 
     emergency vehicles at signalized intersections.
       ``(xiii) Installation of a traffic control or other warning 
     device at a location with high accident potential.
       ``(xiv) Safety-conscious planning.
       ``(xv) Improvement in the collection and analysis of crash 
     data.
       ``(xvi) Planning, integrated interoperable emergency 
     communications equipment, operational activities, or traffic 
     enforcement activities (including police assistance) relating 
     to workzone safety.
       ``(xvii) Installation of guardrails, barriers (including 
     barriers between construction work zones and traffic lanes 
     for the safety of motorists and workers), and crash 
     attenuators.
       ``(xviii) The addition or retrofitting of structures or 
     other measures to eliminate or reduce accidents involving 
     vehicles and wildlife.
       ``(xix) Installation and maintenance of signs (including 
     fluorescent, yellow-green signs) at pedestrian-bicycle 
     crossings and in school zones.
       ``(xx) Construction and yellow-green signs at pedestrian-
     bicycle crossings and in school zones.
       ``(xxi) Construction and operational improvements on high 
     risk rural roads.
       ``(4) Safety project under any other section.--
       ``(A) In general.--The term `safety project under any other 
     section' means a project carried out for the purpose of 
     safety under any other section of this title.
       ``(B) Inclusion.--The term `safety project under any other 
     section' includes a project to promote the awareness of the 
     public and educate the public concerning highway safety 
     matters (including motorcyclist safety) and a project to 
     enforce highway safety laws.
       ``(5) 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(g).
       ``(6) State strategic highway safety plan.--The term `State 
     strategic highway safety plan' means a plan developed by the 
     State transportation department that--
       ``(A) is developed after consultation with--
       ``(i) a highway safety representative of the Governor of 
     the State;
       ``(ii) regional transportation planning organizations and 
     metropolitan planning organizations, if any;
       ``(iii) representatives of major modes of transportation;
       ``(iv) State and local traffic enforcement officials;
       ``(v) persons responsible for administering section 130 at 
     the State level;
       ``(vi) representatives conducting Operation Lifesaver;
       ``(vii) representatives conducting a motor carrier safety 
     program under section 31102, 31106, or 31309 of title 49;
       ``(viii) motor vehicle administration agencies; and
       ``(ix) other major State and local safety stakeholders;
       ``(B) analyzes and makes effective use of State, regional, 
     or local crash data;
       ``(C) addresses engineering, management, operation, 
     education, enforcement, and emergency services elements 
     (including integrated, interoperable emergency 
     communications) of highway safety as key factors in 
     evaluating highway projects;
       ``(D) considers safety needs of, and high-fatality segments 
     of, public roads;
       ``(E) considers the results of State, regional, or local 
     transportation and highway safety planning processes;
       ``(F) describes a program of projects or strategies to 
     reduce or eliminate safety hazards;
       ``(G) is approved by the Governor of the State or a 
     responsible State agency; and
       ``(H) is consistent with the requirements of section 
     135(g).
       ``(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,

[[Page H7069]]

     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, 
     the disabled, and other highway users; and
       ``(iv) includes a means of identifying the relative 
     severity of hazardous locations described in clause (iii) in 
     terms of accidents, injuries, deaths, and traffic volume 
     levels;
       ``(E)(i) determine priorities for the correction of 
     hazardous road locations, sections, and elements (including 
     railway-highway crossing improvements), as identified through 
     crash data analysis;
       ``(ii) identify opportunities for preventing the 
     development of such hazardous conditions; and
       ``(iii) establish and implement a schedule of highway 
     safety improvement projects for hazard correction and hazard 
     prevention; and
       ``(F)(i) establish an evaluation process to analyze and 
     assess results achieved by highway safety improvement 
     projects carried out in accordance with procedures and 
     criteria established by this section; and
       ``(ii) use the information obtained under clause (i) in 
     setting priorities for highway safety improvement projects.
       ``(d) Eligible Projects.--
       ``(1) In general.--A State may obligate funds apportioned 
     to the State under section 104(b)(5) to carry out--
       ``(A) any highway safety improvement project on any public 
     road or publicly owned bicycle or pedestrian pathway or 
     trail; or
       ``(B) as provided in subsection (e), 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 10 
     percent of the amount of funds apportioned to the State under 
     section 104(b)(5) for a fiscal year to carry out safety 
     projects under any other section as provided in the State 
     strategic highway safety plan if the State certifies that--
       ``(A) the State has met needs in the State relating to 
     railway-highway crossings; and
       ``(B) the State has met the State's infrastructure safety 
     needs relating to highway safety improvement projects.
       ``(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) High Risk Rural Roads.--
       ``(1) In general.--After making an apportionment under 
     section 104(b)(5) for a fiscal year beginning after September 
     30, 2005, the Secretary shall ensure, from amounts made 
     available to carry out this section for such fiscal year, 
     that a total of $90,000,000 of such apportionment is set 
     aside by the States, proportionally according to the share of 
     each State of the total amount so apportioned, for use only 
     for construction and operational improvements on high risk 
     rural roads.
       ``(2) Special rule.--A State may use funds apportioned to 
     the State pursuant to this subsection for any project under 
     this section if the State certifies to the Secretary that the 
     State has met all of State needs for construction and 
     operational improvements on high risk rural roads.
       ``(g) 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 crashes at railway-
     highway crossings.
       ``(2) Contents; schedule.--The Secretary shall establish 
     the content and schedule for a report under paragraph (1).
       ``(3) Transparency.--The Secretary shall make reports 
     submitted under subsection (c)(1)(D) available to the public 
     through--
       ``(A) the Web site of the Department; and
       ``(B) such other means as the Secretary determines to be 
     appropriate.
       ``(4) Discovery and admission into evidence of certain 
     reports, surveys, and information.--Notwithstanding any other 
     provision of law, reports, surveys, schedules, lists, or data 
     compiled or collected for any purpose directly relating to 
     paragraph (1) or subsection (c)(1)(D), or published by the 
     Secretary in accordance with paragraph (3), shall not be 
     subject to discovery or admitted into evidence in a Federal 
     or State court proceeding or considered for other purposes in 
     any action for damages arising from any occurrence at a 
     location identified or addressed in such reports, surveys, 
     schedules, lists, or other data.
       ``(h) Federal Share of Highway Safety Improvement 
     Projects.--Except as provided in sections 120 and 130, the 
     Federal share of the cost of a highway safety improvement 
     project carried out with funds apportioned to a State under 
     section 104(b)(5) shall be 90 percent.''.
       (2) Clerical amendment.--The analysis for chapter 1 of such 
     title is amended by striking the item relating to section 148 
     and inserting the following:

``148. Highway safety improvement program.''.

       (3) Conforming amendments.--
       (A) Transfers of apportionments.--Section 104(g) of such 
     title is amended in the first sentence by striking ``sections 
     130, 144, and 152 of this title'' and inserting ``sections 
     130 and 144''.
       (B) Uniform transferability.--Section 126(a) of such title 
     is amended by inserting ``under'' after ``State's 
     apportionment''.
       (C) Other sections.--Sections 154, 164, and 409 of such 
     title are amended by striking ``152'' each place it appears 
     and inserting ``148''.
       (b) Apportionment of Highway Safety Improvement Program 
     Funds.--Section 104(b) of such title (as amended by section 
     1103 of this Act) is amended--
       (1) in the matter preceding paragraph (1) by inserting 
     after ``Improvement program,'' the following: ``the highway 
     safety improvement program,''; and
       (2) by adding at the end the following:
       ``(5) Highway safety improvement program.--
       ``(A) In general.--For the highway safety improvement 
     program, in accordance with the following formula:
       ``(i) 33\1/3\ percent of the apportionments in the ratio 
     that--

       ``(I) the total lane miles of Federal-aid highways in each 
     State; bears to
       ``(II) the total lane miles of Federal-aid highways in all 
     States.

       ``(ii) 33\1/3\ percent of the apportionments in the ratio 
     that--

       ``(I) the total vehicle miles traveled on lanes on Federal-
     aid highways in each State; bears to
       ``(II) the total vehicle miles traveled on lanes on 
     Federal-aid highways in all States.

       ``(iii) 33\1/3\ percent of the apportionments in the ratio 
     that--

       ``(I) the number of fatalities on the Federal-aid system in 
     each State in the latest fiscal year for which data are 
     available; bears to
       ``(II) the number of fatalities on the Federal-aid system 
     in all States in the latest fiscal year for which data are 
     available.

       ``(B) Minimum apportionment.--Notwithstanding subparagraph 
     (A), each State shall receive a minimum of \1/2\ of 1 percent 
     of the funds apportioned under this paragraph.''.
       (d) Elimination of Hazards Relating to Railway-Highway 
     Crossings.--
       (1) Funds for protective devices.--Section 130(e) of such 
     title is amended--
       (A) by striking ``At'' and inserting the following:
       ``(1) In general.--Before making an apportionment under 
     section 104(b)(5) for a fiscal year, the Secretary shall set 
     aside, from amounts made available to carry out the highway 
     safety improvement program under section 148 for such fiscal 
     year, at least $220,000,000 for the elimination of hazards 
     and the installation of protective devices at railway-highway 
     crossings. At''; and
       (B) by adding at the end the following:
       ``(2) Special rule.--If a State demonstrates to the 
     satisfaction of the Secretary that the State has met all its 
     needs for installation of protective devices at railway-
     highway crossings, the State may use funds made available by 
     this section for other purposes under this subsection.''.
       (2) Apportionment.--Section 130(f) of such title is amended 
     to read as follows:
       ``(f) Apportionment.--
       ``(1) Formula.--Fifty percent of the funds set aside to 
     carry out this section pursuant to subsection (e)(1) shall be 
     apportioned to the States in accordance with the formula set 
     forth in section 104(b)(3)(A), and 50 percent of such funds 
     shall be apportioned to the States in the ratio that total 
     public railway-highway crossings in each State bears to the 
     total of such crossings in all States.
       ``(2) Minimum apportionment.--Notwithstanding paragraph 
     (1), each State shall receive a minimum of \1/2\ of 1 percent 
     of the funds apportioned under paragraph (1).
       ``(3) Federal share.--The Federal share payable on account 
     of any project financed with funds set aside to carry out 
     this section shall be 90 percent of the cost thereof.''.
       (3) Biennial reports to congress.--Section 130(g) of such 
     title is amended in the third sentence--
       (A) by inserting ``and the Committee on Commerce, Science, 
     and Transportation,'' after ``Public Works''; and
       (B) by striking ``not later than April 1 of each year'' and 
     inserting ``, not later than April 1, 2006, and every 2 years 
     thereafter,''.
       (4) Expenditure of funds.--Section 130 of such title is 
     amended by adding at the end the following:
       ``(k) Expenditure of Funds.--Not more than 2 percent of 
     funds apportioned to a State to

[[Page H7070]]

     carry out this section may be used by the State for 
     compilation and analysis of data in support of activities 
     carried out under subsection (g).''.
       (e) Transition.--
       (1) Implementation.--Except as provided in paragraph (2), 
     the Secretary shall approve obligations of funds apportioned 
     under section 104(b)(5) of title 23, United States Code (as 
     added by subsection (b)) to carry out section 148 of that 
     title, only if, not later than October 1 of the second fiscal 
     year beginning after the date of enactment of this Act, a 
     State has developed and implemented a State strategic highway 
     safety plan as required pursuant to section 148(c) of that 
     title.
       (2) Interim period.--
       (A) In general.--Before October 1 of the second fiscal year 
     after the date of enactment of this Act and until the date on 
     which a State develops and implements a State strategic 
     highway safety plan, the Secretary shall apportion funds to a 
     State for the highway safety improvement program and the 
     State may obligate funds apportioned to the State for the 
     highway safety improvement program under section 148 for 
     projects that were eligible for funding under sections 130 
     and 152 of that title, as in effect on the day before the 
     date of enactment of this Act.
       (B) No strategic highway safety plan.--If a State has not 
     developed a strategic highway safety plan by October 1, 2007, 
     the State shall receive for the highway safety improvement 
     program for each subsequent fiscal year until the date of 
     development of such plan an amount that equals the amount 
     apportioned to the State for that program for fiscal year 
     2007.

     SEC. 1402. WORKER INJURY PREVENTION AND FREE FLOW OF 
                   VEHICULAR TRAFFIC.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall issue regulations to decrease the 
     likelihood of worker injury and maintain the free flow of 
     vehicular traffic by requiring workers whose duties place 
     them 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 garments. The regulations may also 
     require such other worker-safety measures for workers with 
     those duties as the Secretary determines to be appropriate.

     SEC. 1403. TOLL FACILITIES WORKPLACE SAFETY STUDY.

       (a) In General.--The Secretary shall conduct a study on the 
     safety of highway toll collection facilities, including toll 
     booths, to determine the safety of the facilities for the 
     toll collectors who work in and around the facilities, 
     including consideration of--
       (1) the effect of design or construction of the facilities 
     on the likelihood of vehicle collisions with the facilities;
       (2) the safety of crosswalks used by toll collectors in 
     transit to and from toll booths;
       (3) the extent of the enforcement of speed limits in the 
     vicinity of the facilities;
       (4) the use of warning devices, such as vibration and 
     rumble strips, to alert drivers approaching the facilities;
       (5) the use of cameras to record traffic violations in the 
     vicinity of the facilities;
       (6) the use of traffic control arms in the vicinity of the 
     facilities;
       (7) law enforcement practices and jurisdictional issues 
     that affect safety in the vicinity of the facilities; and
       (8) the incidence of accidents and injuries in the vicinity 
     of toll booths.
       (b) Data Collection.--As part of the study, the Secretary 
     shall collect data regarding the incidence of accidents and 
     injuries in the vicinity of highway toll collection 
     facilities.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Environment and 
     Public Works of the Senate a report on the results of the 
     study, together with recommendations for improving toll 
     facilities workplace safety.
       (d) Funding.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section, out of the 
     Highway Trust Fund (other than the Mass Transit Account), 
     $500,000 for fiscal year 2006.
       (2) Contract authority.--Funds authorized to be 
     appropriated by this section shall be available for 
     obligation in the same manner and to the same extent as if 
     the funds were apportioned under chapter 1 of title 23, 
     United States Code, except that the Federal share of the cost 
     of the project shall be 100 percent, and the funds shall 
     remain available until expended and shall not be 
     transferable.

     SEC. 1404. SAFE ROUTES TO SCHOOL PROGRAM.

       (a) Establishment.--Subject to the requirements of this 
     section, the Secretary shall establish and carry out a safe 
     routes to school program for the benefit of children in 
     primary and middle schools.
       (b) Purposes.--The purposes of the program shall be--
       (1) to enable and encourage children, including those with 
     disabilities, to walk and bicycle to school;
       (2) to make bicycling and walking to school a safer and 
     more appealing transportation alternative, thereby 
     encouraging a healthy and active lifestyle from an early age; 
     and
       (3) to facilitate the planning, development, and 
     implementation of projects and activities that will improve 
     safety and reduce traffic, fuel consumption, and air 
     pollution in the vicinity of schools.
       (c) Apportionment of Funds.--
       (1) In general.--Subject to paragraphs (2), (3), and (4), 
     amounts made available to carry out this section for a fiscal 
     year shall be apportioned among the States in the ratio 
     that--
       (A) the total student enrollment in primary and middle 
     schools in each State; bears to
       (B) the total student enrollment in primary and middle 
     schools in all States.
       (2) Minimum apportionment.--No State shall receive an 
     apportionment under this section for a fiscal year of less 
     than $1,000,000.
       (3) Set-aside for administrative expenses.--Before 
     apportioning under this subsection amounts made available to 
     carry out this section for a fiscal year, the Secretary shall 
     set aside not more than $3,000,000 of such amounts for the 
     administrative expenses of the Secretary in carrying out this 
     subsection.
       (4) Determination of student enrollments.--Determinations 
     under this subsection concerning student enrollments shall be 
     made by the Secretary.
       (d) Administration of Amounts.--Amounts apportioned to a 
     State under this section shall be administered by the State's 
     department of transportation.
       (e) Eligible Recipients.--Amounts apportioned to a State 
     under this section shall be used by the State to provide 
     financial assistance to State, local, and regional agencies, 
     including nonprofit organizations, that demonstrate an 
     ability to meet the requirements of this section.
       (f) Eligible Projects and Activities.--
       (1) Infrastructure-related projects.--
       (A) In general.--Amounts apportioned to a State under this 
     section may be used for the planning, design, and 
     construction of infrastructure-related projects that will 
     substantially improve the ability of students to walk and 
     bicycle to school, including sidewalk improvements, traffic 
     calming and speed reduction improvements, pedestrian and 
     bicycle crossing improvements, on-street bicycle facilities, 
     off-street bicycle and pedestrian facilities, secure bicycle 
     parking facilities, and traffic diversion improvements in the 
     vicinity of schools.
       (B) Location of projects.--Infrastructure-related projects 
     under subparagraph (A) may be carried out on any public road 
     or any bicycle or pedestrian pathway or trail in the vicinity 
     of schools.
       (2) Noninfrastructure-related activities.--
       (A) In general.--In addition to projects described in 
     paragraph (1), amounts apportioned to a State under this 
     section may be used for noninfrastructure-related activities 
     to encourage walking and bicycling to school, including 
     public awareness campaigns and outreach to press and 
     community leaders, traffic education and enforcement in the 
     vicinity of schools, student sessions on bicycle and 
     pedestrian safety, health, and environment, and funding for 
     training, volunteers, and managers of safe routes to school 
     programs.
       (B) Allocation.--Not less than 10 percent and not more than 
     30 percent of the amount apportioned to a State under this 
     section for a fiscal year shall be used for 
     noninfrastructure-related activities under this subparagraph.
       (3) Safe routes to school coordinator.--Each State 
     receiving an apportionment under this section for a fiscal 
     year shall use a sufficient amount of the apportionment to 
     fund a full-time position of coordinator of the State's safe 
     routes to school program.
       (g) Clearinghouse.--
       (1) In general.--The Secretary shall make grants to a 
     national nonprofit organization engaged in promoting safe 
     routes to schools to--
       (A) operate a national safe routes to school clearinghouse;
       (B) develop information and educational programs on safe 
     routes to school; and
       (C) provide technical assistance and disseminate techniques 
     and strategies used for successful safe routes to school 
     programs.
       (2) Funding.--The Secretary shall carry out this subsection 
     using amounts set aside for administrative expenses under 
     subsection (c)(3).
       (h) Task Force.--
       (1) In general.--The Secretary shall establish a national 
     safe routes to school task force composed of leaders in 
     health, transportation, and education, including 
     representatives of appropriate Federal agencies, to study and 
     develop a strategy for advancing safe routes to school 
     programs nationwide.
       (2) Report.--Not later than March 31, 2006, the Secretary 
     shall submit to Congress a report containing the results of 
     the study conducted, and a description of the strategy 
     developed, under paragraph (1) and information regarding the 
     use of funds for infrastructure-related and 
     noninfrastructure-related activities under paragraphs (1) and 
     (2) of subsection (f).
       (3) Funding.--The Secretary shall carry out this subsection 
     using amounts set aside for administrative expenses under 
     subsection (c)(3).
       (i) Applicability of Title 23.--Funds made available to 
     carry out this section shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; except that such 
     funds shall not be transferable and shall remain available 
     until expended, and the Federal share of the cost of a 
     project or activity under this section shall be 100 percent.
       (j) Treatment of Projects.--Notwithstanding any other 
     provision of law, projects assisted under this subsection 
     shall be treated as projects on a Federal-aid system under 
     chapter 1 of title 23, United States Code.
       (k) Definitions.--In this section, the following 
     definitions apply:
       (1) In the vicinity of schools.--The term ``in the vicinity 
     of schools'' means, with respect to a school, the area within 
     bicycling and walking distance of the school (approximately 2 
     miles).
       (2) Primary and middle schools.--The term ``primary and 
     middle schools'' means schools providing education from 
     kindergarten through eighth grade.

[[Page H7071]]

     SEC. 1405. ROADWAY SAFETY IMPROVEMENTS FOR OLDER DRIVERS AND 
                   PEDESTRIANS.

       (a) In General.--The Secretary shall carry out a program to 
     improve traffic signs and pavement markings in all States (as 
     such term is defined in section 101 of title 23, United 
     States Code) 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.
       (b) Federal Share.--The Federal share of the cost of a 
     project carried out under this section shall be determined in 
     accordance with section 120 of title 23, United States Code.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section for each of fiscal years 2005 through 2009.

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

       Section 157(g)(1) of title 23, United States Code, is 
     amended by striking ``2004, and'' and all that follows 
     through ``2005'' and inserting ``2004, and $112,000,000 for 
     fiscal year 2005''.

     SEC. 1407. SAFETY INCENTIVES TO PREVENT OPERATION OF MOTOR 
                   VEHICLES BY INTOXICATED PERSONS.

       (a) Codification of Penalty.--Section 163 of title 23, 
     United States Code, is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following:
       ``(e) Penalty.--
       ``(1) In general.--On October 1, 2003, and October 1 of 
     each fiscal year thereafter, if a State has not enacted or is 
     not enforcing a law described in subsection (a), the 
     Secretary shall withhold from amounts apportioned to the 
     State on that date under each of paragraphs (1), (3), and (4) 
     of section 104(b) an amount equal to the amount specified in 
     paragraph (2).
       ``(2) Amount to be withheld.--If a State is subject to a 
     penalty under paragraph (1), the Secretary shall withhold for 
     a fiscal year from the apportionments of the State described 
     in paragraph (1) an amount equal to a percentage of the funds 
     apportioned to the State under paragraphs (1), (3), and (4) 
     of section 104(b) for fiscal year 2003. The percentage shall 
     be as follows:
       ``(A) For fiscal year 2004, 2 percent.
       ``(B) For fiscal year 2005, 4 percent.
       ``(C) For fiscal year 2006, 6 percent.
       ``(D) For fiscal year 2007, and each fiscal year 
     thereafter, 8 percent.
       ``(3) Failure to comply.--If, within 4 years from the date 
     that an apportionment for a State is withheld in accordance 
     with this subsection, the Secretary determines that the State 
     has enacted and is enforcing a law described in subsection 
     (a), the apportionment of the State shall be increased by an 
     amount equal to the amount withheld. If, at the end of such 
     4-year period, any State has not enacted or is not enforcing 
     a law described in subsection (a) any amounts so withheld 
     from such State shall lapse.''.
       (b) Authorization of Appropriations.--Section 163(f)(1) of 
     such title (as redesignated by subsection (a)(1) of this 
     section) is amended by striking ``2004, and'' and inserting 
     ``2004, and $110,000,000 for fiscal year 2005''.
       (c) Repeal.--Section 351 of the Department of 
     Transportation and Related Agencies Appropriations Act, 2001 
     (23 U.S.C. 163 note; 114 Stat. 1356A-34) is repealed.

     SEC. 1408. IMPROVEMENT OR REPLACEMENT OF HIGHWAY FEATURES ON 
                   NATIONAL HIGHWAY SYSTEM.

       (a) Update of Implementation Guidance.--The Secretary, in 
     cooperation with the American Association of State Highway 
     and Transportation Officials, shall update as appropriate the 
     August 28, 1998, Federal Highway Administration Policy on 
     Implementation of the report of the Transportation Research 
     Board of the National Research Council entitled ``NCHRP 
     Report 350-Recommended Procedures for the Safety Performance 
     Evaluation of Highway Features''.
       (b) Guidance.--The Secretary, in cooperation with the 
     Association, shall publish updated guidance regarding the 
     conditions under which States, when choosing to improve or 
     replace highway features on the National Highway System, 
     should improve or replace such features with highway features 
     that have been tested, evaluated, and found to be acceptable 
     under the guidelines of the report referred to in subsection 
     (a).
       (c) Matters to Be Considered.--Guidance published in 
     accordance with subsection (a)--
       (1) shall address those highway features that are covered 
     by the guidelines in the report referred to in subsection 
     (b); and
       (2) shall consider types of highway features, cost-
     effectiveness, and practicality of replacement with highway 
     features that have been found to be acceptable under the 
     report guidelines to determine conditions when such features 
     should be used.

     SEC. 1409. WORK ZONE SAFETY GRANTS.

       (a) In General.--The Secretary shall establish and 
     implement a work zone safety grant program under which the 
     Secretary may make grants to nonprofit organizations and not-
     for-profit organizations to provide training to prevent or 
     reduce highway work zone injuries and fatalities.
       (b) Eligible Activities.--Grants may be made under the 
     program for the following purposes:
       (1) Training for construction craft workers on the 
     prevention of injuries and fatalities in highway and road 
     construction.
       (2) Development of guidelines for the prevention of highway 
     work zone injuries and fatalities.
       (3) Training for State and local government transportation 
     agencies and other groups implementing guidelines for the 
     prevention of highway work zone injuries and fatalities.
       (c) Funding.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $5,000,000 for each of 
     fiscal years 2006 through 2009.
       (2) Contract authority.--Funds authorized by this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code; except that such funds shall 
     not be transferable.
       (d) Construction Work in Alaska.--Section 114 of title 23, 
     United States Code, is amended by adding at the end of the 
     following:
       ``(c) Construction Work in Alaska.--
       ``(1) In general.--The Secretary shall ensure that a worker 
     who is employed on a remote project for the construction of a 
     highway or portion of a highway located on a Federal-aid 
     system in the State of Alaska and who is not a domiciled 
     resident of the locality shall receive meals and lodging.
       ``(2) Lodging.--The lodging under paragraph (1) shall be in 
     accordance with section 1910.142 of title 29, Code of Federal 
     Regulations (relating to temporary labor camp requirements).
       ``(3) Per diem.--
       ``(A) In general.--Contractors are encouraged to use 
     commercial facilities and lodges on remote projects, however, 
     when such facilities are not available, per diem in lieu of 
     room and lodging may be paid on remote Federal highway 
     projects at a basic rate of $75.00 per day or part of a day 
     the worker is employed on the project. Where the contractor 
     provides or furnishes room and lodging or pays a per diem, 
     the cost of the amount shall not be considered a part of 
     wages and shall be excluded from the calculation of wages.
       ``(B) Secretary of labor.--Such per diem rate shall be 
     adopted by the Secretary of Labor for all applicable remote 
     Federal highway projects in Alaska.
       ``(C) Exception.--Per diem shall not be allowed on any of 
     the following remote projects for the construction of a 
     highway or portion of a highway located on a Federal-aid 
     system:
       ``(i) West of Livengood on the Elliot Highway.
       ``(ii) Mile 0 on the Dalton Highway to the North Slope of 
     Alaska; north of Mile 20 on the Taylor Highway.
       ``(iii) East of Chicken on the Top of the World Highway and 
     south of Tetlin Junction to the Alaska Canadian border.
       ``(4) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Remote.--The term `remote', as used with respect to a 
     project, means that the project is 65 road miles or more from 
     the international airport in Fairbanks, Anchorage, or Juneau, 
     Alaska, as the case may be, or is inaccessible by road in a 
     2-wheel drive vehicle.
       ``(B) Resident.--The term `resident', as used with respect 
     to a project, means a person living within 65 road miles of 
     the midpoint of the project for at least 12 consecutive 
     months prior to the award of the project.''.

     SEC. 1410. NATIONAL WORK ZONE SAFETY INFORMATION 
                   CLEARINGHOUSE.

       (a) Grants.--The Secretary shall make grants for fiscal 
     years 2006 through 2009 to a national nonprofit foundation 
     for the operation of the National Work Zone Safety 
     Information Clearinghouse, authorized by section 358(b)(2) of 
     Public Law 104-59, created for the purpose of assembling and 
     disseminating, by electronic and other means, information 
     relating to improvement of roadway work zone safety.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section 
     $1,000,000 for each of fiscal years 2006 through 2009.
       (c) Contract Authority.--Funds authorized by this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code, except the Federal share of the 
     cost of activities carried out using such funds shall be 100 
     percent, and such funds shall remain available until expended 
     and shall not be transferable.

     SEC. 1411. ROADWAY SAFETY.

       (a) Road Safety.--
       (1) In general.--The Secretary shall enter into an 
     agreement to assist in the activities of a national nonprofit 
     organization that is dedicated solely to improving public 
     road safety--
       (A) by improving the quality of data pertaining to public 
     road hazards and design features that affect or increase the 
     severity of motor vehicle crashes;
       (B) by developing and carrying out a public awareness 
     campaign to educate State and local transportation officials, 
     public safety officials, and motorists regarding the extent 
     to which public road hazards and design features are a factor 
     in motor vehicle crashes; and
       (C) by promoting public road safety research and technology 
     transfer activities.
       (2) Funding.--There is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $500,000 for each of fiscal years 2006 through 2009 to carry 
     out this subsection.
       (3) Applicability of title 23.--Funds made available by 
     this subsection shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23, United States Code, except that the funds shall 
     remain available until expended.
       (b) Bicycle and Pedestrian Safety Grants.--
       (1) In general.--The Secretary shall make grants to a 
     national, not-for-profit organization

[[Page H7072]]

     engaged in promoting bicycle and pedestrian safety--
       (A) to operate a national bicycle and pedestrian 
     clearinghouse;
       (B) to develop information and educational programs; and
       (C) to disseminate techniques and strategies for improving 
     bicycle and pedestrian safety.
       (2) Funding.--There is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $300,000 for fiscal year 2005 and $500,000 for each of fiscal 
     years 2006 through 2009 to carry out this subsection.
       (3) Applicability of title 23.--Funds made available by 
     this subsection shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23, United States Code, except that the funds shall 
     remain available until expended.

     SEC. 1412. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-
                   OF-WAY.

       Section 111 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(d) Idling Reduction Facilities in Interstate Rights-of-
     Way.--
       ``(1) In general.--Notwithstanding subsection (a), a State 
     may--
       ``(A) permit electrification or other idling reduction 
     facilities and equipment, for use by motor vehicles used for 
     commercial purposes, to be placed in rest and recreation 
     areas, and in safety rest areas, constructed or located on 
     rights-of-way of the Interstate System in the State, so long 
     as those idling reduction measures do not reduce the existing 
     number of designated truck parking spaces at any given rest 
     or recreation area; and
       ``(B) charge a fee, or permit the charging of a fee, for 
     the use of those parking spaces actively providing power to a 
     truck to reduce idling.
       ``(2) Purpose.--The exclusive purpose of the facilities 
     described in paragraph (1) (or similar technologies) shall be 
     to enable operators of motor vehicles used for commercial 
     purposes--
       ``(A) to reduce idling of a truck while parked in the rest 
     or recreation area; and
       ``(B) to use installed or other equipment specifically 
     designed to reduce idling of a truck, or provide alternative 
     power for supporting driver comfort, while parked.''.
            Subtitle E--Construction and Contract Efficiency

     SEC. 1501. PROGRAM EFFICIENCIES.

       (a) Advance Construction.--Section 115 of title 23, United 
     States Code, is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) In General.--The Secretary may authorize a State to 
     proceed with a project authorized under this title--
       ``(1) without the use of Federal funds; and
       ``(2) in accordance with all procedures and requirements 
     applicable to the project other than those procedures and 
     requirements that limit the State to implementation of a 
     project--
       ``(A) with the aid of Federal funds previously apportioned 
     or allocated to the State; or
       ``(B) with obligation authority previously allocated to the 
     State.
       ``(b) Obligation of Federal Share.--The Secretary, on the 
     request of a State and execution of a project agreement, may 
     obligate all or a portion of the Federal share of a project 
     authorized to proceed under this section from any category of 
     funds for which the project is eligible.''.
       (b) Obligation and Release of Funds.--Section 118(d) of 
     such title is amended to read as follows:
       ``(d) Obligation and Release of Funds.--
       ``(1) In general.--Funds apportioned or allocated to a 
     State for a purpose for any fiscal year shall be considered 
     to be obligated if a sum equal to the total of the funds 
     apportioned or allocated to the State for that purpose for 
     that fiscal year and previous fiscal years is obligated.
       ``(2) Released funds.--Any funds released by the final 
     payment for a project, or by modifying the project agreement 
     for a project, shall be--
       ``(A) credited to the same class of funds previously 
     apportioned or allocated to the State for the project; and
       ``(B) immediately available for obligation.
       ``(3) Net obligations.--Notwithstanding any other provision 
     of law (including a regulation), obligations recorded against 
     funds made available under this subsection shall be recorded 
     and reported as net obligations.''.

     SEC. 1502. HIGHWAYS FOR LIFE PILOT PROGRAM.

       (a) Establishment.--
       (1) In general.--The Secretary shall establish and 
     implement a pilot program to be known as the ``Highways for 
     LIFE Pilot Program''.
       (2) Purpose.--The purpose of the pilot program shall be to 
     advance longer-lasting highways using innovative technologies 
     and practices to accomplish the fast construction of 
     efficient and safe highways and bridges.
       (3) Objectives.--Under the pilot program, the Secretary 
     shall provide leadership and incentives to demonstrate and 
     promote state-of-the-art technologies, elevated performance 
     standards, and new business practices in the highway 
     construction process that result in improved safety, faster 
     construction, reduced congestion from construction, and 
     improved quality and user satisfaction.
       (b) Projects.--
       (1) Applications.--To be eligible to participate in the 
     pilot program, a State shall submit to the Secretary an 
     application that is in such form and contains such 
     information as the Secretary requires. Each application shall 
     contain a description of proposed projects to be carried by 
     the State under the pilot program.
       (2) Eligibility.--A proposed project shall be eligible for 
     assistance under the pilot program if the project--
       (A) constructs, reconstructs, or rehabilitates a route or 
     connection on a Federal-aid highway eligible for assistance 
     under chapter 1 of title 23, United States Code;
       (B) uses innovative technologies, manufacturing processes, 
     financing, or contracting methods that improve safety, reduce 
     congestion due to construction, and improve quality; and
       (C) meets additional criteria as determined by the 
     Secretary.
       (3) Project proposal.--A project proposal submitted under 
     paragraph (1) shall contain--
       (A) an identification and description of the projects to be 
     delivered;
       (B) a description of how the projects will result in 
     improved safety, faster construction, reduced congestion due 
     to construction, user satisfaction, and improved quality;
       (C) a description of the innovative technologies, 
     manufacturing processes, financing, and contracting methods 
     that will be used for the proposed projects; and
       (D) such other information as the Secretary may require.
       (4) Selection criteria.--In selecting projects for approval 
     under this section, the Secretary shall ensure that the 
     projects provide an evaluation of a broad range of 
     technologies in a wide variety of project types and shall 
     give priority to the projects that--
       (A) address achieving the Highways for LIFE performance 
     standards for quality, safety, and speed of construction;
       (B) deliver and deploy innovative technologies, 
     manufacturing processes, financing, contracting practices, 
     and performance measures that will demonstrate substantial 
     improvements in safety, congestion, quality, and cost-
     effectiveness;
       (C) include innovation that will lead to change in the 
     administration of the State's transportation program to more 
     quickly construct long-lasting, high-quality, cost-effective 
     projects that improve safety and reduce congestion;
       (D) are or will be ready for construction within 1 year of 
     approval of the project proposal; and
       (E) meet such other criteria as the Secretary determines 
     appropriate.
       (5) Financial assistance.--
       (A) Funds for highways for life projects.--Out of amounts 
     made available to carry out this section for a fiscal year, 
     the Secretary may allocate to a State up to 20 percent, but 
     not more than $5,000,000, of the total cost of a project 
     approved under this section. Notwithstanding any other 
     provision of law, funds allocated to a State under this 
     subparagraph may be applied to the non-Federal share of the 
     cost of construction of a project under title 23, United 
     States Code.
       (B) Use of apportioned funds.--A State may obligate not 
     more than 10 percent of the amount apportioned to the State 
     under 1 or more of paragraphs (1), (2), (3), and (4) of 
     section 104(b) of title 23, United States Code, for a fiscal 
     year for projects approved under this section.
       (C) Increased federal share.--Notwithstanding sections 120 
     and 129 of title 23, United States Code, the Federal share 
     payable on account of any project constructed with Federal 
     funds allocated under this section, or apportioned under 
     section 104(b) of such title, to a State under such title and 
     approved under this section may amount to 100 percent of the 
     cost of construction of such project.
       (D) Limitation on statutory construction.--Except as 
     provided in subparagraph (C), nothing in this subsection 
     shall be construed as altering or otherwise affecting the 
     applicability of the requirements of chapter 1 of title 23, 
     United States Code (including requirements relating to the 
     eligibility of a project for assistance under the program and 
     the location of the project), to amounts apportioned to a 
     State for a program under section 104(b) that are obligated 
     by the State for projects approved under this subsection.
       (6) Project selections.--In the period of fiscal years 2005 
     through 2009, the Secretary, to the maximum extent possible, 
     shall approve at least 1 project in each State for 
     participation in the pilot program and for financial 
     assistance under paragraph (5) if the State submits an 
     application and the project meets the eligibility 
     requirements and selection criteria under this subsection.
       (7) Maximum number of projects.--The maximum number of 
     projects for which the Secretary may allocate funds under 
     this subsection in a fiscal year is 15.
       (c) Technology Partnerships.--
       (1) In general.--The Secretary may make grants or enter 
     into cooperative agreements or other transactions to foster 
     the development, improvement, and creation of innovative 
     technologies and facilities to improve safety, enhance the 
     speed of highway construction, and improve the quality and 
     durability of highways.
       (2) Federal share.--The Federal share of the cost of an 
     activity carried out under this subsection shall not exceed 
     80 percent.
       (d) Technology Transfer and Information Dissemination.--
       (1) In general.--The Secretary shall conduct a highways for 
     life technology transfer program.
       (2) Availability of information.--The Secretary shall 
     ensure that the information and technology used, developed, 
     or deployed under this subsection is made available to the 
     transportation community and the public.
       (e) Stakeholder Input and Involvement.--The Secretary shall 
     establish a process for stakeholder input and involvement in 
     the development, implementation, and evaluation of the 
     Highways for LIFE Pilot Program. The process may include 
     participation by representatives of State departments of 
     transportation and other interested persons.

[[Page H7073]]

       (f) Project Monitoring and Evaluation.--The Secretary shall 
     monitor and evaluate the effectiveness of any activity 
     carried out under this section.
       (g) Contract Authority.--Except as otherwise provided in 
     this section, funds authorized to be appropriated 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.
       (h) State Defined.--In this section, the term ``State'' has 
     the meaning such term has in section 101(a) of title 23, 
     United States Code.

     SEC. 1503. DESIGN BUILD.

       Section 112(b)(3) of title 23, United States Code, is 
     amended--
       (1) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Qualified projects.--A qualified project referred to 
     in subparagraph (A) is a project under this chapter 
     (including intermodal projects) for which the Secretary has 
     approved the use of design-build contracting under criteria 
     specified in regulations issued by the Secretary.
       ``(D) Regulatory process.--Not later than 90 days after the 
     date of enactment of the SAFETEA-LU, the Secretary shall 
     issue revised regulations under section 1307(c) of the 
     Transportation Equity Act for 21st Century (23 U.S.C. 112 
     note; 112 Stat. 230) that--
       ``(i) do not preclude a State transportation department or 
     local transportation agency, prior to compliance with section 
     102 of the National Environmental Policy Act of 1969 (42 
     U.S.C. 4332), from--

       ``(I) issuing requests for proposals;
       ``(II) proceeding with awards of design-build contracts; or
       ``(III) issuing notices to proceed with preliminary design 
     work under design-build contracts;

       ``(ii) require that the State transportation department or 
     local transportation agency receive concurrence from the 
     Secretary before carrying out an activity under clause (i); 
     and
       ``(iii) preclude the design-build contractor from 
     proceeding with final design or construction of any permanent 
     improvement prior to completion of the process under such 
     section 102.''.
                          Subtitle F--Finance

     SEC. 1601. TRANSPORTATION INFRASTRUCTURE FINANCE AND 
                   INNOVATION ACT AMENDMENTS.

       (a) Definitions.--Section 181 of title 23, United States 
     Code, is amended--
       (1) in paragraph (3) by striking ``category'' and ``offered 
     into the capital markets'';
       (2) by striking paragraph (7) and redesignating paragraphs 
     (8) through (15) as paragraphs (7) through (14), 
     respectively;
       (3) in paragraph (8) (as redesignated by paragraph (2) of 
     this subsection)--
       (A) in subparagraph (B) by striking the period at the end 
     and inserting a semicolon; and
       (B) by striking subparagraph (D) and inserting the 
     following:
       ``(D) a project that--
       ``(i) is a project--

       ``(I) for a public freight rail facility or a private 
     facility providing public benefit for highway users;
       ``(II) for an intermodal freight transfer facility;
       ``(III) for a means of access to a facility described in 
     subclause (I) or (II);
       ``(IV) for a service improvement for a facility described 
     in subclause (I) or (II) (including a capital investment for 
     an intelligent transportation system); or
       ``(V) that comprises a series of projects described in 
     subclauses (I) through (IV) with the common objective of 
     improving the flow of goods;

       ``(ii) may involve the combining of private and public 
     sector funds, including investment of public funds in private 
     sector facility improvements; and
       ``(iii) if located within the boundaries of a port 
     terminal, includes only such surface transportation 
     infrastructure modifications as are necessary to facilitate 
     direct intermodal interchange, transfer, and access into and 
     out of the port.''; and
       (4) in paragraph (10) (as redesignated by paragraph (2) of 
     this subsection) by striking ``bond'' and inserting 
     ``credit''.
       (b) Determination of Eligibility.--Section 182(a) of such 
     title is amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Inclusion in transportation plans and programs.--The 
     project shall satisfy the applicable planning and programming 
     requirements of sections 134 and 135 at such time as an 
     agreement to make available a Federal credit instrument is 
     entered into under this subchapter.
       ``(2) Application.--A State, local government, public 
     authority, public-private partnership, or any other legal 
     entity undertaking the project and authorized by the 
     Secretary, shall submit a project application to the 
     Secretary.'';
       (2) in paragraph (3)(A)(i) by striking ``$100,000,000'' and 
     inserting ``$50,000,000'';
       (3) in paragraph (3)(A)(ii) by striking ``50'' and 
     inserting ``33\1/3\'';
       (4) in paragraph (3)(B) by striking ``$30,000,000'' and 
     inserting ``$15,000,000''; and
       (5) in paragraph (4)--
       (A) by striking ``Project financing'' and inserting ``The 
     Federal credit instrument''; and
       (B) by inserting before the period at the end ``that also 
     secure the project obligations''.
       (c) Project Selection.--Section 182(b) of such title is 
     amended--
       (1) in paragraph (1) by striking ``criteria'' the second 
     place it appears and inserting ``requirements''; and
       (2) in paragraph (2)(B) by inserting ``, which may be the 
     Federal credit instrument,'' after ``obligations''.
       (d) Secured Loans.--
       (1) Agreements.--Section 183(a)(1) of such title is 
     amended--
       (A) in subparagraph (A) by inserting ``of any project 
     selected under section 602'' after ``costs'';
       (B) by striking the semicolon at the end of subparagraph 
     (B) and all that follows through ``under section 182.'' and 
     inserting ``of any project selected under section 602; or''; 
     and
       (C) by adding at the end the following:
       ``(C) to refinance long-term project obligations or Federal 
     credit instruments if such refinancing provides additional 
     funding capacity for the completion, enhancement, or 
     expansion of any project that--
       ``(i) is selected under section 602; or
       ``(ii) otherwise meets the requirements of section 602.''.
       (2) Investment-grade rating requirement.--Section 183(a)(4) 
     of such title is amended--
       (A) by striking ``The funding'' and inserting ``The 
     execution''; and
       (B) by striking the first comma and all that follows 
     through ``1 rating agency''.
       (3) Terms and limitations.--Section 183(b) of such title is 
     amended--
       (A) in paragraph (2)--
       (i) by inserting ``the lesser of'' after ``exceed''; and
       (ii) by inserting ``or, if the secured loan does not 
     receive an investment grade rating, the amount of the senior 
     project obligations'' after ``costs'';
       (B) in paragraph (3)(A)(i) by inserting ``that also secure 
     the senior project obligations'' after ``sources''; and
       (C) in paragraph (4) by striking ``marketable''.
       (4) Repayment.--Section 183(c) of such title is amended--
       (A) by striking paragraph (3);
       (B) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively;
       (C) in paragraph (3)(A) (as redesignated by subparagraph 
     (B) of this paragraph) by striking ``during the 10 years''; 
     and
       (D) in subparagraph (3)(B)(ii) (as so redesignated) by 
     striking ``loan'' and all that follows and inserting 
     ``loan.''.
       (e) Lines of Credit.--
       (1) Terms and limitations.--Section 184(b) of such title is 
     amended--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Maximum amounts.--The total amount of the line of 
     credit shall not exceed 33 percent of the reasonably 
     anticipated eligible project costs.'';
       (B) in paragraph (3) by striking ``, any debt service 
     reserve fund, and any other available reserve'' and inserting 
     ``but not including reasonably required financing reserves'';
       (C) in paragraph (4)--
       (i) by striking ``marketable'';
       (ii) by striking ``on which'' and inserting ``of execution 
     of''; and
       (iii) by striking ``is obligated'' and inserting 
     ``agreement'';
       (D) in paragraph (5)(A)(i) by inserting ``that also secure 
     the senior project obligations'' after ``sources''; and
       (E) in paragraph (6) by striking ``line of credit'' and 
     inserting ``full amount of the line of credit, to the extent 
     not drawn upon,''.
       (2) Repayment.--Section 184(c) of such title is amended--
       (A) in paragraph (2)--
       (i) by striking ``scheduled'';
       (ii) by inserting ``be scheduled to'' after ``shall''; and
       (iii) by striking ``be fully repaid, with interest,'' and 
     inserting ``to conclude, with full repayment of principal and 
     interest,''; and
       (B) by striking paragraph (3).
       (f) Program Administration.--Section 185 of such title is 
     amended to read as follows:

     ``Sec. 185. Program administration

       ``(a) Requirement.--The Secretary shall establish a uniform 
     system to service the Federal credit instruments made 
     available under this subchapter.
       ``(b) Fees.--
       ``(1) In general.--The Secretary may collect and spend 
     fees, contingent upon authority being provided in 
     appropriations Acts, at a level that is sufficient to cover--
       ``(A) the costs of services of expert firms retained 
     pursuant to subsection (d); and
       ``(B) all or a portion of the costs to the Federal 
     Government of servicing the Federal credit instruments.
       ``(c) Servicer.--
       ``(1) In general.--The Secretary may appoint a financial 
     entity to assist the Secretary in servicing the Federal 
     credit instruments.
       ``(2) Duties.--The servicer shall act as the agent for the 
     Secretary.
       ``(3) Fee.--The servicer shall receive a servicing fee, 
     subject to approval by the Secretary.
       ``(d) Assistance From Expert Firms.--The Secretary may 
     retain the services of expert firms, including counsel, in 
     the field of municipal and project finance to assist in the 
     underwriting and servicing of Federal credit instruments.''.
       (g) Funding.--Section 188 of such title is amended to read 
     as follows:

     ``Sec. 188. Funding

       ``(a) Funding.--
       ``(1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this subchapter $122,000,000 for each 
     of fiscal years 2005 through 2009.
       ``(2) Availability.--Amounts made available to carry out 
     this chapter shall remain available until expended.
       ``(3) Administrative costs.--From funds made available to 
     carry out this chapter, the Secretary may use, for the 
     administration of this

[[Page H7074]]

     subchapter, not more than $2,200,000 for each of fiscal years 
     2005 through 2009.
       ``(b) Contract Authority.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, approval by the Secretary of a Federal credit instrument 
     that uses funds made available under this subchapter shall 
     impose upon the United States a contractual obligation to 
     fund the Federal credit investment.
       ``(2) Availability.--Amounts authorized under this section 
     for a fiscal year shall be available for obligation on 
     October 1 of the fiscal year.''.
       (h) Dates for Submission of Reports.--Section 189 of such 
     title is amended--
       (1) by striking the section designation and heading and 
     inserting the following:

     ``Sec. 189. Reports to Congress'';

       (2) by striking ``Not later than 4 years after the date of 
     enactment of this subchapter,'' and inserting ``On June 1, 
     2006, and every 2 years thereafter,''; and
       (3) by striking ``subchapter'' each place it appears and 
     inserting ``chapter (other than section 610)''.
       (i) Clerical Amendment.--The analysis for chapter 1 of such 
     title is amended by striking the item relating to section 185 
     and inserting the following:

``185. Program administration.''.

     SEC. 1602. STATE INFRASTRUCTURE BANKS.

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

     ``Sec. 190. State infrastructure bank program

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Capital project.--The term `capital project' has the 
     meaning such term has under section 5302 of title 49.
       ``(2) Other forms of credit assistance.--The term `other 
     forms of credit assistance' includes any use of funds in an 
     infrastructure bank--
       ``(A) to provide credit enhancements;
       ``(B) to serve as a capital reserve for bond or debt 
     instrument financing;
       ``(C) to subsidize interest rates;
       ``(D) to insure or guarantee letters of credit and credit 
     instruments against credit risk of loss;
       ``(E) to finance purchase and lease agreements with respect 
     to transit projects;
       ``(F) to provide bond or debt financing instrument 
     security; and
       ``(G) to provide other forms of debt financing and methods 
     of leveraging funds that are approved by the Secretary and 
     that relate to the project with respect to which such 
     assistance is being provided.
       ``(3) State.--The term `State' has the meaning such term 
     has under section 401.
       ``(4) Capitalization.--The term `capitalization' means the 
     process used for depositing funds as initial capital into a 
     State infrastructure bank to establish the infrastructure 
     bank.
       ``(5) Cooperative agreement.--The term `cooperative 
     agreement' means written consent between a State and the 
     Secretary which sets forth the manner in which the 
     infrastructure bank established by the State in accordance 
     with this section will be administered.
       ``(6) Loan.--The term `loan' means any form of direct 
     financial assistance from a State infrastructure bank that is 
     required to be repaid over a period of time and that is 
     provided to a project sponsor for all or part of the costs of 
     the project.
       ``(7) Guarantee.--The term `guarantee' means a contract 
     entered into by a State infrastructure bank in which the bank 
     agrees to take responsibility for all or a portion of a 
     project sponsor's financial obligations for a project under 
     specified conditions.
       ``(8) Initial assistance.--The term `initial assistance' 
     means the first round of funds that are loaned or used for 
     credit enhancement by a State infrastructure bank for 
     projects eligible for assistance under this section.
       ``(9) Leverage.--The term `leverage' means a financial 
     structure used to increase funds in a State infrastructure 
     bank through the issuance of debt instruments.
       ``(10) Leveraged.--The term `leveraged', as used with 
     respect to a State infrastructure bank, means that the bank 
     has total potential liabilities that exceed the capital of 
     the bank.
       ``(b) Cooperative Agreements.--Subject to the provisions of 
     this section, the Secretary may enter into cooperative 
     agreements with States for the establishment of State 
     infrastructure banks for making loans and providing other 
     forms of credit assistance to public and private entities 
     carrying out or proposing to carry out projects eligible for 
     assistance under this section.
       ``(c) Interstate Compacts.--
       ``(1) In general.--Congress grants consent to 2 or more of 
     the States, entering into a cooperative agreement under 
     subsection (a) with the Secretary for the establishment by 
     such States of a multistate infrastructure bank in accordance 
     with this section, to enter into an interstate compact 
     establishing such bank in accordance with this section.
       ``(2) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(d) Funding.--
       ``(1) Highway account.--Subject to subsection (j), the 
     Secretary may permit a State entering into a cooperative 
     agreement under this section to establish a State 
     infrastructure bank to deposit into the highway account of 
     the bank not to exceed--
       ``(A) 10 percent of the funds apportioned to the State for 
     each of fiscal years 2005 through 2009 under each of sections 
     104(b)(1), 104(b)(3), 104(b)(4), and 144; and
       ``(B) 10 percent of the funds allocated to the State for 
     each of such fiscal years under section 105.
       ``(2) Transit account.--Subject to subsection (j), the 
     Secretary may permit a State entering into a cooperative 
     agreement under this section to establish a State 
     infrastructure bank, and any other recipient of Federal 
     assistance under section 5307, 5309, or 5311 of title 49, to 
     deposit into the transit account of the bank not to exceed 10 
     percent of the funds made available to the State or other 
     recipient in each of fiscal years 2005 through 2009 for 
     capital projects under each of such sections.
       ``(3) Rail account.--Subject to subsection (j), the 
     Secretary may permit a State entering into a cooperative 
     agreement under this section to establish a State 
     infrastructure bank, and any other recipient of Federal 
     assistance under subtitle V of title 49, to deposit into the 
     rail account of the bank funds made available to the State or 
     other recipient in each of fiscal years 2005 through 2009 for 
     capital projects under such subtitle.
       ``(4) Capital grants.--
       ``(A) Highway account.--Federal funds deposited into a 
     highway account of a State infrastructure bank under 
     paragraph (1) shall constitute for purposes of this section a 
     capitalization grant for the highway account of the bank.
       ``(B) Transit account.--Federal funds deposited into a 
     transit account of a State infrastructure bank under 
     paragraph (2) shall constitute for purposes of this section a 
     capitalization grant for the transit account of the bank.
       ``(C) Rail account.--Federal funds deposited into a rail 
     account of a State infrastructure bank under paragraph 3 
     shall constitute for purposes of this section a 
     capitalization grant for the rail account of the bank.
       ``(5) Special rule for urbanized areas of over 200,000.--
     Funds in a State infrastructure bank that are attributed to 
     urbanized areas of a State with urbanized populations of over 
     200,000 under section 133(d)(3) may be used to provide 
     assistance with respect to a project only if the metropolitan 
     planning organization designated for such area concurs, in 
     writing, with the provision of such assistance.
       ``(6) Discontinuance of funding.--If the Secretary 
     determines that a State is not implementing the State's 
     infrastructure bank in accordance with a cooperative 
     agreement entered into under subsection (b), the Secretary 
     may prohibit the State from contributing additional Federal 
     funds to the bank.
       ``(e) Forms of Assistance From Infrastructure Banks.--An 
     infrastructure bank established under this section may make 
     loans or provide other forms of credit assistance to a public 
     or private entity in an amount equal to all or a part of the 
     cost of carrying out a project eligible for assistance under 
     this section. The amount of any loan or other form of credit 
     assistance provided for the project may be subordinated to 
     any other debt financing for the project. Initial assistance 
     provided with respect to a project from Federal funds 
     deposited into an infrastructure bank under this section may 
     not be made in the form of a grant.
       ``(f) Eligible Projects.--Subject to subsection (e), funds 
     in an infrastructure bank established under this section may 
     be used only to provide assistance for projects eligible for 
     assistance under this title and capital projects defined in 
     section 5302 of title 49, and any other projects relating to 
     surface transportation that the Secretary determines to be 
     appropriate.
       ``(g) Infrastructure Bank Requirements.--In order to 
     establish an infrastructure bank under this section, the 
     State establishing the bank shall--
       ``(1) deposit in cash, at a minimum, into each account of 
     the bank from non-Federal sources an amount equal to 25 
     percent of the amount of each capitalization grant made to 
     the State and deposited into such account; except that, if 
     the deposit is into the highway account of the bank and the 
     State has a non-Federal share under section 120(b) that is 
     less than 25 percent, the percentage to be deposited from 
     non-Federal sources shall be the lower percentage of such 
     grant;
       ``(2) ensure that the bank maintains on a continuing basis 
     an investment grade rating on its debt, or has a sufficient 
     level of bond or debt financing instrument insurance, to 
     maintain the viability of the bank;
       ``(3) ensure that investment income derived from funds 
     deposited to an account of the bank are--
       ``(A) credited to the account;
       ``(B) available for use in providing loans and other forms 
     of credit assistance to projects eligible for assistance from 
     the account; and
       ``(C) invested in United States Treasury securities, bank 
     deposits, or such other financing instruments as the 
     Secretary may approve to earn interest to enhance the 
     leveraging of projects assisted by the bank;
       ``(4) ensure that any loan from the bank will bear interest 
     at or below market interest rates, as determined by the 
     State, to make the project that is the subject of the loan 
     feasible;
       ``(5) ensure that repayment of any loan from the bank will 
     commence not later than 5 years after the project has been 
     completed or, in the case of a highway project, the facility 
     has opened to traffic, whichever is later;
       ``(6) ensure that the term for repaying any loan will not 
     exceed 30 years after the date of the first payment on the 
     loan; and
       ``(7) require the bank to make an annual report to the 
     Secretary on its status no later than September 30 of each 
     year and such other reports as the Secretary may require 
     under guidelines issued to carry out this section.
       ``(h) Applicability of Federal Law.--
       ``(1) In general.--The requirements of this title and title 
     49 that would otherwise apply to funds made available under 
     this title or such title and projects assisted with those 
     funds shall apply to--

[[Page H7075]]

       ``(A) funds made available under this title or such title 
     and contributed to an infrastructure bank established under 
     this section, including the non-Federal contribution required 
     under subsection (g); and
       ``(B) projects assisted by the bank through the use of the 
     funds;
     except to the extent that the Secretary determines that any 
     requirement of such title (other than sections 113 and 114 of 
     this title and section 5333 of title 49) is not consistent 
     with the objectives of this section.
       ``(2) Repayments.--The requirements of this title and title 
     49 shall apply to repayments from non-Federal sources to an 
     infrastructure bank from projects assisted by the bank. Such 
     a repayment shall be considered to be Federal funds.
       ``(i) United States not Obligated.--The deposit of Federal 
     funds into an infrastructure bank established under this 
     section shall not be construed as a commitment, guarantee, or 
     obligation on the part of the United States to any third 
     party, nor shall any third party have any right against the 
     United States for payment solely by virtue of the 
     contribution. Any security or debt-financing instrument 
     issued by the infrastructure bank shall expressly state that 
     the security or instrument does not constitute a commitment, 
     guarantee, or obligation of the United States.
       ``(j) Management of Federal Funds.--Sections 3335 and 6503 
     of title 31 shall not apply to funds deposited into an 
     infrastructure bank under this section.
       ``(k) Program Administration.--For each of fiscal years 
     2005 through 2009, a State may expend not to exceed 2 percent 
     of the Federal funds contributed to an infrastructure bank 
     established by the State under this section to pay the 
     reasonable costs of administering the bank.''.
       (b) Preparatory Amendments.--
       (1) Section 181.--Section 181 of such title is amended--
       (A) by striking the section designator and heading and 
     inserting the following:

     ``Sec. 181. Generally applicable provisions'';

       (B) by striking ``In this subchapter'' and inserting the 
     following:
       ``(a) Definitions.--In this chapter'';
       (C) in paragraph (5) by striking ``184'' and inserting 
     ``604'';
       (D) in paragraph (11) (as redesignated by section 1601(a) 
     of this Act) by striking ``183'' and inserting ``603''; and
       (E) by adding at the end the following:
       ``(b) Treatment of Chapter.--For purposes of this title, 
     this chapter shall be treated as being part of chapter 1.''.
       (2) Section 182.--Section 182(b)(2)(A)(viii) of such title 
     is amended by inserting ``and chapter 1'' after ``this 
     chapter''.
       (3) Section 183.--Section 183(a)(3) of such title is 
     amended by striking ``182(b)(2)(B)'' and inserting 
     ``602(b)(2)(B)''.
       (4) Section 184.--Section 184 of such title is amended--
       (A) in subsection (a)(1) by striking ``182'' and inserting 
     ``602'';
       (B) in subsection (a)(3) by striking ``182(b)(2)(B)'' and 
     inserting ``602(b)(2)(B)''; and
       (C) in subsection (b)(10) by striking ``183'' and inserting 
     ``603''.
       (5) References in subchapter.--Subchapter II of chapter 1 
     of such title is amended by striking ``this subchapter'' each 
     place it appears and inserting ``this chapter''.
       (6) Subchapter headings.--Chapter 1 of such title is 
     further amended--
       (A) by striking ``SUBCHAPTER I--GENERAL PROVISIONS'' 
     preceding section 101; and
       (B) by striking ``SUBCHAPTER II--INFRASTRUCTURE FINANCE'' 
     preceding section 181.
       (c) Chapter 6.--Such title is further amended by adding at 
     the end the following:

                  ``CHAPTER 6--INFRASTRUCTURE FINANCE

``Sec.
``601. Generally applicable provisions.
``602. Determination of eligibility and project selection.
``603. Secured loans.
``604. Lines of credit.
``605. Program administration.
``606. State and local permits.
``607. Regulations.
``608. Funding.
``609. Reports to Congress.
``610. State infrastructure bank program.''.
       (d) Moving and Redesignating.--Such title is further 
     amended--
       (1) by redesignating sections 181 through 189 as sections 
     601 through 609, respectively;
       (2) by moving such sections from chapter 1 to chapter 6 (as 
     added by subsection (c)); and
       (3) by inserting such sections after the analysis for 
     chapter 6.
       (e) Analysis for Chapter 1 and Table of Chapters.--
       (1) Analysis for chapter 1.--The analysis for chapter 1 of 
     such title is amended--
       (A) by striking the headings for subchapters I and II; and
       (B) by striking the items relating to sections 181 through 
     189.
       (2) Table of chapters.--The table of chapters for such 
     title is amended by inserting after the item relating to 
     chapter 5 the following:

``6. Infrastructure Finance.....................................601.''.

     SEC. 1603. USE OF EXCESS FUNDS AND FUNDS FOR INACTIVE 
                   PROJECTS.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Eligible funds.--
       (A) In general.--The term ``eligible funds'' means excess 
     funds or inactive funds for a specific transportation project 
     or activity that were--
       (i) allocated before fiscal year 1991; and
       (ii) designated in a public law, or a report accompanying a 
     public law, for allocation for the specific surface 
     transportation project or activity.
       (B) Inclusion.--The term ``eligible funds'' includes funds 
     described in subparagraph (A) that were allocated and 
     designated for a demonstration project.
       (2) Excess funds.--The term ``excess funds'' means--
       (A) funds obligated for a specific transportation project 
     or activity that remain available for the project or activity 
     after the project or activity has been completed or canceled; 
     or
       (B) an unobligated balance of funds allocated for a 
     transportation project or activity that the State in which 
     the project or activity was to be carried out certifies are 
     no longer needed for the project or activity.
       (3) Inactive funds.--The term ``inactive funds'' means--
       (A) an obligated balance of Federal funds for an eligible 
     transportation project or activity against which no 
     expenditures have been charged during any 1-year period 
     beginning after the date of obligation of the funds; and
       (B) funds that are available to carry out a transportation 
     project or activity in a State, but, as certified by the 
     State, are unlikely to be advanced for the project or 
     activity during the 1-year period beginning on the date of 
     certification.
       (b) Availability for STP Purposes.--Eligible funds shall 
     be--
       (1) made available in accordance with this section to the 
     State that originally received the funds; and
       (2) available for obligation for any eligible purpose under 
     section 133 of title 23, United States Code.
       (c) Retention for Original Purpose.--
       (1) In general.--The Secretary may determine that eligible 
     funds identified as inactive funds shall remain available for 
     the purpose for which the funds were initially made available 
     if the applicable State certifies that the funds are 
     necessary for that initial purpose.
       (2) Report.--A certification provided by a State under 
     paragraph (1) shall include a report on the status of, and an 
     estimated completion date for, the project that is the 
     subject of the certification.
       (d) Authority to Obligate.--Notwithstanding the original 
     source or period of availability of eligible funds, the 
     Secretary may, on the request by a State--
       (1) obligate the funds for any eligible purpose under 
     section 133 of title 23, United States Code; or
       (2)(A) deobligate the funds; and
       (B) reobligate the funds for any eligible purpose under 
     that section.
       (e) Applicability.--
       (1) In general.--Subject to paragraph (2), this section 
     applies only to eligible funds.
       (2) Discretionary allocations; section 125 projects.--This 
     section does not apply to funds that are--
       (A) allocated at the discretion of the Secretary and for 
     which the Secretary has the authority to withdraw the 
     allocation for use on other projects; or
       (B) made available to carry out projects under section 125 
     of title 23, United States Code.
       (f) Period of Availability; Title 23 Requirements.--
       (1) In general.--Notwithstanding the original source or 
     period of availability of eligible funds obligated, or 
     deobligated and reobligated, under subsection (d), the 
     eligible funds--
       (A) shall remain available for obligation for a period of 3 
     fiscal years after the fiscal year in which this Act is 
     enacted; and
       (B) except as provided in paragraph (2), shall be subject 
     to the requirements of title 23, United States Code, that 
     apply to section 133 of that title, including provisions 
     relating to Federal share.
       (2) Exception.--With respect to eligible funds described in 
     paragraph (1)--
       (A) section 133(d) of title 23, United States Code, shall 
     not apply; and
       (B) the period of availability of the eligible funds shall 
     be determined in accordance with this section.
       (g) Report.--Not later than 1 year after the date of 
     enactment of this Act, and annually thereafter, the Secretary 
     shall submit to the Committee on Environment and Public Works 
     of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report 
     describing any action taken by the Secretary under this 
     section.
       (h) Sense of Congress Regarding Use of Eligible Funds.--It 
     is the sense of Congress that eligible funds made available 
     under this Act or title 23, United States Code, should be 
     available for obligation for transportation projects and 
     activities in the same geographic region for which the 
     eligible funds were initially made available.

     SEC. 1604. TOLLING.

       (a) Value Pricing Pilot Program.--Section 1012(b)(8) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (23 
     U.S.C. 149 note; 105 Stat. 1938) is amended--
       (1) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (C) and (D), respectively; and
       (2) by inserting before subparagraph (C) (as redesignated 
     by paragraph (1)) the following:
       ``(A) In general.--There are authorized to be appropriated 
     to the Secretary from the Highway Trust Fund (other than the 
     Mass Transit Account) to carry out this subsection--
       ``(i) for fiscal year 2005, $11,000,000; and
       ``(ii) for each of fiscal years 2006 through 2009, 
     $12,000,000.
       ``(B) Set-aside for projects not involving highway tolls.--
     Of the amounts made available to carry out this subsection, 
     $3,000,000 for each of fiscal years 2006 through 2009 shall 
     be available only for congestion pricing pilot projects that 
     do not involve highway tolls.''.

[[Page H7076]]

       (b) Express Lanes Demonstration Program.--
       (1) Definitions.--In this subsection, the following 
     definitions apply:
       (A) Eligible toll facility.--The term ``eligible toll 
     facility'' includes--
       (i) a facility in existence on the date of enactment of 
     this Act that collects tolls;
       (ii) a facility in existence on the date of enactment of 
     this Act that serves high occupancy vehicles;
       (iii) a facility modified or constructed after the date of 
     enactment of this Act to create additional tolled lane 
     capacity (including a facility constructed by a private 
     entity or using private funds); and
       (iv) in the case of a new lane added to a previously non-
     tolled facility, only the new lane.
       (B) Nonattainment area.--The term ``nonattainment area'' 
     has the meaning given that term in section 171 of the Clean 
     Air Act (42 U.S.C. 7501).
       (2) Demonstration program.--Notwithstanding sections 129 
     and 301 of title 23, United States Code, the Secretary shall 
     carry out 15 demonstration projects during the period of 
     fiscal years 2005 through 2009 to permit States, public 
     authorities, or a public or private entities designated by 
     States, to collect a toll from motor vehicles at an eligible 
     toll facility for any highway, bridge, or tunnel, including 
     facilities on the Interstate System--
       (A) to manage high levels of congestion;
       (B) to reduce emissions in a nonattainment area or 
     maintenance area; or
       (C) to finance the expansion of a highway, for the purpose 
     of reducing traffic congestion, by constructing 1 or more 
     additional lanes (including bridge, tunnel, support, and 
     other structures necessary for that construction) on the 
     Interstate System.
       (3) Limitation on use of revenues.--
       (A) Use.--
       (i) In general.--Toll revenues received under paragraph (2) 
     shall be used by a State, public authority, or private entity 
     designated by a State, for--

       (I) debt service;
       (II) a reasonable return on investment of any private 
     financing;
       (III) the costs necessary for proper operation and 
     maintenance of any facilities under paragraph (2) (including 
     reconstruction, resurfacing, restoration, and 
     rehabilitation); or
       (IV) if the State, public authority, or private entity 
     annually certifies that the tolled facility is being 
     adequately operated and maintained, any other purpose 
     relating to a highway or transit project carried out under 
     title 23 or 49, United States Code.

       (B) Requirements.--
       (i) Variable price requirement.--A facility that charges 
     tolls under this subsection may establish a toll that varies 
     in price according to time of day or level of traffic, as 
     appropriate to manage congestion or improve air quality.
       (ii) HOV variable pricing requirement.--The Secretary shall 
     require, for each high occupancy vehicle facility that 
     charges tolls under this subsection, that the tolls vary in 
     price according to time of day or level of traffic, as 
     appropriate to manage congestion or improve air quality.
       (iii) HOV passenger requirements.--Pursuant to section 166 
     of title 23, United States Code, a State may permit motor 
     vehicles with fewer than 2 occupants to operate in high 
     occupancy vehicle lanes as part of a variable toll pricing 
     program established under this subsection.
       (C) Agreement.--
       (i) In general.--Before the Secretary may permit a facility 
     to charge tolls under this subsection, the Secretary and the 
     applicable State, public authority, or private entity 
     designated by a State shall enter into an agreement for each 
     facility incorporating the conditions described in 
     subparagraphs (A) and (B).
       (ii) Termination.--An agreement under clause (i) shall 
     terminate with respect to a facility upon the decision of the 
     State, public authority, or private entity designated by a 
     State to discontinue the variable tolling program under this 
     subsection for the facility.
       (iii) Debt.--If there is any debt outstanding on a facility 
     at the time at which the decision is made to discontinue the 
     program under this subsection with respect to the facility, 
     the facility may continue to charge tolls in accordance with 
     the terms of the agreement until such time as the debt is 
     retired.
       (D) Limitation on federal share.--The Federal share of the 
     cost of a project on a facility tolled under this subsection, 
     including a project to install the toll collection facility 
     shall be a percentage, not to exceed 80 percent, determined 
     by the applicable State.
       (4) Eligibility.--To be eligible to participate in the 
     program under this subsection, a State, public authority, or 
     private entity designated by a State shall provide to the 
     Secretary--
       (A) a description of the congestion or air quality problems 
     sought to be addressed under the program;
       (B) a description of--
       (i) the goals sought to be achieved under the program; and
       (ii) the performance measures that would be used to gauge 
     the success made toward reaching those goals; and
       (C) such other information as the Secretary may require.
       (5) Automation.--Fees collected from motorists using an 
     express lane shall be collected only through the use of 
     noncash electronic technology that optimizes the free flow of 
     traffic on the tolled facility.
       (6) Interoperability.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate a final 
     rule specifying requirements, standards, or performance 
     specifications for automated toll collection systems 
     implemented under this section.
       (B) Development.--In developing that rule, which shall be 
     designed to maximize the interoperability of electronic 
     collection systems, the Secretary shall, to the maximum 
     extent practicable--
       (i) seek to accelerate progress toward the national goal of 
     achieving a nationwide interoperable electronic toll 
     collection system;
       (ii) take into account the use of noncash electronic 
     technology currently deployed within an appropriate 
     geographical area of travel and the noncash electronic 
     technology likely to be in use within the next 5 years; and
       (iii) seek to minimize additional costs and maximize 
     convenience to users of toll facility and to the toll 
     facility owner or operator.
       (7) Reporting.--
       (A) In general.--The Secretary, in cooperation with State 
     and local agencies and other program participants and with 
     opportunity for public comment, shall--
       (i) develop and publish performance goals for each express 
     lane project;
       (ii) establish a program for regular monitoring and 
     reporting on the achievement of performance goals, 
     including--

       (I) effects on travel, traffic, and air quality;
       (II) distribution of benefits and burdens;
       (III) use of alternative transportation modes; and
       (IV) use of revenues to meet transportation or impact 
     mitigation needs.

       (B) Reports to congress.--The Secretary shall submit to the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives--
       (i) not later than 1 year after the date of enactment of 
     this Act, and annually thereafter, a report that describes in 
     detail the uses of funds under this subsection in accordance 
     with paragraph (8)(D); and
       (ii) not later than 3 years after the date of enactment of 
     this Act, and every 3 years thereafter, a report that 
     describes any success of the program under this subsection in 
     meeting congestion reduction and other performance goals 
     established for express lane programs.
       (c) Interstate System Construction Toll Pilot Program.--
       (1) Establishment.--The Secretary shall establish and 
     implement an Interstate System construction toll pilot 
     program under which the Secretary, notwithstanding sections 
     129 and 301 of title 23, United States Code, may permit a 
     State or an interstate compact of States to collect tolls on 
     a highway, bridge, or tunnel on the Interstate System for the 
     purpose of constructing Interstate highways.
       (2) Limitation on number of facilities.--The Secretary may 
     permit the collection of tolls under this section on 3 
     facilities on the Interstate System.
       (3) Eligibility.--To be eligible to participate in the 
     pilot program, a State shall submit to the Secretary an 
     application that contains, at a minimum, the following:
       (A) An identification of the facility on the Interstate 
     System proposed to be a toll facility.
       (B) In the case of a facility that affects a metropolitan 
     area, an assurance that the metropolitan planning 
     organization designated under section 134 or 135 for the area 
     has been consulted concerning the placement and amount of 
     tolls on the facility.
       (C) An analysis demonstrating that financing the 
     construction of the facility with the collection of tolls 
     under the pilot program is the most efficient and economical 
     way to advance the project.
       (D) A facility management plan that includes--
       (i) a plan for implementing the imposition of tolls on the 
     facility;
       (ii) a schedule and finance plan for the construction of 
     the facility using toll revenues;
       (iii) a description of the public transportation agency 
     that will be responsible for implementation and 
     administration of the pilot program;
       (iv) a description of whether consideration will be given 
     to privatizing the maintenance and operational aspects of the 
     facility, while retaining legal and administrative control of 
     the portion of the Interstate route; and
       (v) such other information as the Secretary may require.
       (4) Selection criteria.--The Secretary may approve the 
     application of a State under paragraph (3) only if the 
     Secretary determines that--
       (A) the State's analysis under paragraph (3)(C) is 
     reasonable;
       (B) the State plan for implementing tolls on the facility 
     takes into account the interests of local, regional, and 
     interstate travelers;
       (C) the State plan for construction of the facility using 
     toll revenues is reasonable;
       (D) the State will develop, manage, and maintain a system 
     that will automatically collect the tolls; and
       (E) the State has given preference to the use of a public 
     toll agency with demonstrated capability to build, operate, 
     and maintain a toll expressway system meeting criteria for 
     the Interstate System.
       (5) Prohibition on noncompete agreements.--Before the 
     Secretary may permit a State to participate in the pilot 
     program, the State must enter into an agreement with the 
     Secretary that provides that the State will not enter into an 
     agreement with a private person under which the State is 
     prevented from improving or expanding the capacity of public 
     roads adjacent to the toll facility to address conditions 
     resulting from traffic diverted to such roads from the toll 
     facility, including--
       (A) excessive congestion;
       (B) pavement wear; and
       (C) an increased incidence of traffic accidents, injuries, 
     or fatalities.
       (6) Limitations on use of revenues; audits.--Before the 
     Secretary may permit a State to participate in the pilot 
     program, the State

[[Page H7077]]

     must enter into an agreement with the Secretary that provides 
     that--
       (A) all toll revenues received from operation of the toll 
     facility will be used only for--
       (i) debt service;
       (ii) reasonable return on investment of any private person 
     financing the project; and
       (iii) any costs necessary for the improvement of and the 
     proper operation and maintenance of the toll facility, 
     including reconstruction, resurfacing, restoration, and 
     rehabilitation of the toll facility; and
       (B) regular audits will be conducted to ensure compliance 
     with subparagraph (A) and the results of such audits will be 
     transmitted to the Secretary.
       (7) Limitation on use of interstate maintenance funds.--
     During the term of the pilot program, funds apportioned for 
     Interstate maintenance under section 104(b)(4) of title 23, 
     United States Code, may not be used on a facility for which 
     tolls are being collected under the program.
       (8) Program term.--The Secretary may approve an application 
     of a State for permission to collect a toll under this 
     section only if the application is received by the Secretary 
     before the last day of the 10-year period beginning on the 
     date of enactment of this Act.
       (9) Interstate system defined.--In this section, the term 
     ``Interstate System'' has the meaning such term has under 
     section 101 of title 23, United States Code.
                   Subtitle G--High Priority Projects

     SEC. 1701. HIGH PRIORITY PROJECTS PROGRAM.

       (a) Authorization of High Priority Projects.--Section 
     117(a) of title 23, United States Code, is amended to read as 
     follows:
       ``(a) Authorization of High Priority Projects.--
       ``(1) In general.--The Secretary is authorized to carry out 
     high priority projects with funds made available to carry out 
     the high priority projects program under this section.
       ``(2) Availability of funds.--
       ``(A) For tea21.--Of amounts made available to carry out 
     this section for fiscal years 1998 through 2003, the 
     Secretary, subject to subsection (b), shall make available to 
     carry out each project described in section 1602 of the 
     Transportation Equity Act for the 21st Century the amount 
     listed for such project in such section.
       ``(B) For safetea-lu.--Of amounts made available to carry 
     out this section for fiscal years 2005 through 2009, the 
     Secretary, subject to subsection (b), shall make available to 
     carry out each project described in section 1702 of the 
     SAFETEA-LU the amount listed for such project in such 
     section.
       ``(3) Availability of unallocated funds.--Any amounts made 
     available to carry out such program that are not allocated 
     for projects described in such section shall be available to 
     the Secretary, subject to subsection (b), to carry out such 
     other high priority projects as the Secretary determines 
     appropriate.''.
       (b) Allocation Percentages.--Section 117(b) of such title 
     is amended to read as follows:
       ``(b) For TEA21.--For each project to be carried out with 
     funds made available to carry out the high priority projects 
     program under this section for fiscal years 1998 through 
     2003--
       ``(1) 11 percent of such amount shall be available for 
     obligation beginning in fiscal year 1998;
       ``(2) 15 percent of such amount shall be available for 
     obligation beginning in fiscal year 1999;
       ``(3) 18 percent of such amount shall be available for 
     obligation beginning in fiscal year 2000;
       ``(4) 18 percent of such amount shall be available for 
     obligation beginning in fiscal year 2001;
       ``(5) 19 percent of such amount shall be available for 
     obligation beginning in fiscal year 2002; and
       ``(6) 19 percent of such amount shall be available for 
     obligation beginning in fiscal year 2003.
       ``(c) For SAFETEA-LU.--For each project to be carried out 
     with funds made available to carry out the high priority 
     projects program under this section for fiscal years 2005 
     through 2009--
       ``(1) 20 percent of such amount shall be available for 
     obligation beginning in fiscal year 2005;
       ``(2) 20 percent of such amount shall be available for 
     obligation beginning in fiscal year 2006;
       ``(3) 20 percent of such amount shall be available for 
     obligation beginning in fiscal year 2007;
       ``(4) 20 percent of such amount shall be available for 
     obligation beginning in fiscal year 2008; and
       ``(5) 20 percent of such amount shall be available for 
     obligation beginning in fiscal year 2009.''.
       (c) Advance Construction.--Section 117(e) of such title is 
     amended--
       (1) in paragraph (1) by inserting after ``21st Century'' 
     the following: ``or section 1701 of the SAFETEA-LU , as the 
     case may be,''; and
       (2) by striking ``section 1602 of the Transportation Equity 
     Act for the 21st Century.'' and inserting ``such section 1602 
     or 1702, as the case may be.''
       (d) Availability of Obligation Limitation.--Section 117(g) 
     of such title is amended by inserting after ``21st Century'' 
     the following: ``or section 1102(g) of the SAFETEA-LU, as the 
     case may be''.
       (e) Federal-State Relationship.--Section 145(b) of such 
     title is amended--
       (1) by inserting after ``described in'' the following: 
     ``section 1702 of the SAFETEA-LU,'';
       (2) by inserting after ``for such projects by'' the 
     following: ``section 1101(a)(16) of the SAFETEA-LU,''; and
       (3) by striking ``117 of title 23, United States Code,'' 
     and inserting ``section 117 of this title,''.

     SEC. 1702. PROJECT AUTHORIZATIONS.

       Subject to section 117 of title 23, United States Code, the 
     amount listed for each high priority project in the following 
     table shall be available (from amounts made available by 
     section 1101(a)(16) of this Act) for fiscal years 2005 
     through 2009 to carry out each such project:

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     SEC. 1703. TECHNICAL AMENDMENTS TO TRANSPORTATION PROJECTS.

       (a) TEA-21.--The table contained in section 1602 of the 
     Transportation Equity Act for the 21st Century (112 Stat. 
     257) is amended--
       (1) in item number 35 by inserting ``and for other related 
     purposes'' after ``Yard'';
       (2) in item number 78 by striking ``Third'' and all that 
     follows through ``Bridge'' and inserting ``Bayview 
     Transportation Improvements Project'';
       (3) in item number 312 by inserting ``through 
     construction'' after ``engineering'';
       (4) in item number 566 by striking ``Prunedale Bypass'' and 
     inserting ``improvements to Prunedale'';
       (5) in item number 732 by striking ``reviews and other 
     preliminary work'' and inserting ``reviews, other preliminary 
     work, and transitional construction'';
       (6) in item number 744 by striking ``Preliminary'' and all 
     that follows through ``Fitchburg'' and inserting ``Design, 
     construction or reconstruction, and right of way acquisition 
     for roadway improvements along the Route 12 corridor in 
     Leominster and Fitchburg to enhance access from Route 2 to 
     North Leominster and downtown Fitchburg'';
       (7) in item number 800 by striking ``Fairview Township'' 
     and inserting ``or other projects selected by the York 
     County, Pennsylvania MPO'';
       (8) in item number 820 by striking ``Conduct'' and all that 
     follows through ``interchange'' and inserting ``Conduct a 
     transportation needs study and make improvements to I-75 
     interchanges in the Grayling area'';
       (9) in item number 863, by adding at the end the following: 
     ``, including the Cuyahoga-Woodland Avenue Bridge'';
       (10) in item number 897 by striking ``Road upgrade'' and 
     all that follows through ``Hills'' and inserting 
     ``Engineering and construction of a new access road to a 
     development near Interstate Route 57 and 167th Street in 
     Country Club Hills'';
       (11) in item 1096 by striking ``Construct'' and all that 
     follows through ``Independence'' and inserting ``Construction 
     and improvements in Reminderville, Ohio (43 percent); 
     streetscaping, bicycle trails, and related improvements to 
     the I-90--SR 615 Interchange in Mentor, Ohio (20 percent); 
     planning and construction of a bicycle trail adjacent to such 
     Interchange (14 percent); Eastlake Stadium transit intermodal 
     facility (16 percent); and purchase of right-of-way for 
     transportation enhancement activities in Bainbridge Township, 
     Ohio (7 percent)'';
       (12) in item number 1121 by striking ``Construct'' and all 
     that follows through ``Douglaston Parkway'' and inserting 
     ``Provide landscaping along both sides of the Grand Central 
     Parkway from 188th Street to 172nd Street'';
       (13) in item number 1225 by striking ``Construct SR 9 
     bypass'' and inserting ``Study, design, and construct 
     transportation solutions for SR 9 corridor'';
       (14) in item number 1349 by inserting ``, and improvements 
     to streets and roads providing access to,'' after ``along'';
       (15) in item number 1375 by striking ``Preliminary'' and 
     all that follows through ``Emmet County'' and inserting 
     ``Petoskey area transportation needs study and trunkline 
     preservation and safety in the Petoskey area'';
       (16) in item number 1392 by striking ``Construct'' and all 
     that follows through ``multimodal center'' and inserting 
     ``Improve the ramp configuration at the I-476 PA Turnpike 
     Landsdale Interchange'';
       (17) in item number 1447 by striking ``Extend'' and all 
     that follows through ``Valparaiso'' and inserting ``Design 
     and construction of interchange at I-65 and 109th Avenue, 
     Crown Point''; and
       (18) in item number 1474 by adding at the end the 
     following: ``, widen Cuyahoga SR87, and $4,000,000 of the 
     amount authorized to construct grading separation at Front 
     Street, Berea''.
       (b) ISTEA.--Item number 32 in the table contained in 
     section 1106(a)(2) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2038) is amended by 
     striking ``Extension of 34th Street from IL Rt.15 to County 
     Road 10'' and inserting ``Extension and improvements of 34th 
     Street''.
                        Subtitle H--Environment

     SEC. 1801. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 
                   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 
       facilities

       ``(a) In General.--The Secretary shall carry out a program 
     for construction of ferry boats and ferry terminal facilities 
     in accordance with section 129(c).
       ``(b) Federal Share.--The Federal share of the cost of 
     construction of ferry boats, ferry terminals, and ferry 
     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) provide critical access to areas that are not well-
     served by other modes of surface transportation;
       ``(2) carry the greatest number of passengers and vehicles; 
     or
       ``(3) carry the greatest number of passengers in passenger-
     only service.
       ``(d) Set-Aside for Projects on NHS.--
       ``(1) In general.--$20,000,000 of the amount made available 
     to carry out this section for each of fiscal years 2005 
     through 2009 shall be obligated for the construction or 
     refurbishment of ferry boats and ferry terminal facilities 
     and approaches to such facilities within marine highway 
     systems that are part of the National Highway System.
       ``(2) Alaska.--$10,000,000 of the $20,000,000 for a fiscal 
     year made available under paragraph (1) shall be made 
     available to the State of Alaska.
       ``(3) New jersey.--$5,000,000 of the $20,000,000 for a 
     fiscal year made available under paragraph (1) shall be made 
     available to the State of New Jersey.
       ``(4) Washington.--$5,000,000 of the $20,000,000 for a 
     fiscal year made available under paragraph (1) shall be made 
     available to the State of Washington.
       ``(e) Period of Availability.--Notwithstanding section 
     118(b), funds made available to carry out this section shall 
     remain available until expended.
       ``(f) Applicability.--All provisions of this chapter that 
     are applicable to the National Highway System, other than 
     provisions relating to apportionment formula and Federal 
     share, shall apply to funds made available to carry out this 
     section, except as determined by the Secretary to be 
     inconsistent with this section.''.
       (b) Clerical Amendment.--The analysis for such subchapter 
     is amended by striking the item relating to section 147 and 
     inserting the following:

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

       (c) Conforming Repeal.--Section 1064 of the Intermodal 
     Surface Transportation Efficiency Act of 1991 (105 Stat. 
     2005) is repealed.
       (d) Authorization of Appropriations.--In addition to 
     amounts made available to carry out section 147 of title 23, 
     United States Code, by section 1101 of this Act, there are 
     authorized to be appropriated such sums as may be necessary 
     to carry out such section 147 for fiscal year 2006 and each 
     fiscal year thereafter. Such funds shall remain available 
     until expended.
       (e) National Ferry Database.--
       (1) Establishment.--The Secretary, acting through the 
     Bureau of Transportation Statistics, shall establish and 
     maintain a national ferry database.
       (2) Contents.--The database shall contain current 
     information regarding ferry systems, including information 
     regarding routes, vessels, passengers and vehicles carried, 
     funding sources and such other information as the Secretary 
     considers useful.
       (3) Update report.--Using information collected through the 
     database, the Secretary shall periodically modify as 
     appropriate the report submitted under section 1207(c) of the 
     Transportation Equity Act for the 21st Century (23 U.S.C. 129 
     note; 112 Stat. 185-186).
       (4) Requirements.--The Secretary shall--
       (A) compile the database not later than 1 year after the 
     date of enactment of this Act and update the database every 2 
     years thereafter;
       (B) ensure that the database is easily accessible to the 
     public; and
       (C) make available, from the amounts made available for the 
     Bureau of Transportation Statistics by section 5101 of this 
     Act, not more than $500,000 for each of fiscal years 2006 
     through 2009 to establish and maintain the database.
       (f) Territory Ferries.--Section 129(c)(5) of title 23, 
     United States Code, is amended by striking ``the Commonwealth 
     of Puerto Rico'' each place it appears and inserting ``any 
     territory of the United States''.

     SEC. 1802. NATIONAL SCENIC BYWAYS PROGRAM.

       (a) In General.--Section 162(a) of title 23, United States 
     Code, is amended--
       (1) in paragraph (1) by striking ``the roads as'' and all 
     that follows and inserting ``the roads as--
       ``(A) National Scenic Byways;
       ``(B) All-American Roads; or
       ``(C) America's Byways.''; and
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Nomination.--
       ``(A) In general.--To be considered for a designation, a 
     road must be nominated by a State, an Indian tribe, or a 
     Federal land management agency and must first be designated 
     as a State scenic byway, an Indian tribe scenic byway, or, in 
     the case of a road on Federal land, as a Federal land 
     management agency byway.
       ``(B) Nomination by indian tribes.--An Indian tribe may 
     nominate a road as a National Scenic Byway under subparagraph 
     (A) only if a Federal land management agency (other than the 
     Bureau of Indian Affairs), a State, or a political 
     subdivision of a State does not have--
       ``(i) jurisdiction over the road; or
       ``(ii) responsibility for managing the road.
       ``(C) Safety.--An Indian tribe shall maintain the safety 
     and quality of roads nominated by the Indian tribe under 
     subparagraph (A).
       ``(4) Reciprocal notification.--States, Indian tribes, and 
     Federal land management agencies shall notify each other 
     regarding nominations made under this subsection for roads 
     that--
       ``(A) are within the jurisdictional boundary of the State, 
     Federal land management agency, or Indian tribe; or
       ``(B) directly connect to roads for which the State, 
     Federal land management agency, or Indian tribe is 
     responsible.''.
       (b) Grants and Technical Assistance.--Section 162(b) of 
     such title is amended--
       (1) in paragraph (1) by inserting ``and Indian tribes'' 
     after ``provide technical assistance to States'';
       (2) in paragraph (1)(A) by striking ``designated as'' and 
     all that follows through ``; and'' and inserting ``designated 
     as--
       ``(i) National Scenic Byways;
       ``(ii) All-American Roads;
       ``(iii) America's Byways;
       ``(iv) State scenic byways; or
       ``(v) Indian tribe scenic byways; and''; and
       (3) in paragraph (1)(B) by inserting ``or Indian tribe'' 
     after ``State'';
       (4) in paragraph (2)(A) by striking ``Byway or All-American 
     Road'' and inserting ``Byway, All-American Road, or 1 of 
     America's Byways'';

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       (5) in paragraph (2)(B)--
       (A) by striking ``State-designated'' and inserting ``State 
     or Indian tribe''; and
       (B) by striking ``designation as a'' and all that follows 
     through ``; and'' and inserting ``designation as--
       ``(i) a National Scenic Byway;
       ``(ii) an All-American Road; or
       ``(iii) 1 of America's Byways; and''; and
       (6) in paragraph (2)(C) by inserting ``or Indian tribe'' 
     after ``State''.
       (c) Eligible Projects.--Section 162(c) of such title is 
     amended--
       (1) in paragraph (1) by inserting ``or Indian tribe'' after 
     ``State'';
       (2) in paragraph (3)--
       (A) by inserting ``Indian tribe scenic byway,'' after 
     ``improvements to a State scenic byway,''; and
       (B) by inserting ``Indian tribe scenic byway,'' after 
     ``designation as a State scenic byway,''; and
       (3) in paragraph (4) by striking ``passing lane,''.
       (d) Conforming Amendment.--Section 162(e) of such title is 
     amended by inserting ``or Indian tribe'' after ``State''.

     SEC. 1803. AMERICA'S BYWAYS RESOURCE CENTER.

       (a) In General.--The Secretary shall allocate funds made 
     available to carry out this section to the America's Byways 
     Resource Center established pursuant to section 1215(b)(1) of 
     the Transportation Equity Act for the 21st Century (112 Stat. 
     209).
       (b) Technical Support and Education.--
       (1) Use of funds.--The Center shall use funds allocated to 
     the Center under this section to continue to provide 
     technical support and conduct educational activities for the 
     national scenic byways program established under section 162 
     of title 23, United States Code.
       (2) Eligible activities.--Technical support and educational 
     activities carried out under this subsection shall provide 
     local officials and organizations associated with National 
     Scenic Byways, All-American Roads, and America's Byways with 
     proactive, technical, and on-site customized assistance, 
     including training, communications (including a public 
     awareness series), publications, conferences, on-site 
     meetings, and other assistance considered appropriate to 
     develop and sustain such byways and roads.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section 
     $1,500,000 for fiscal year 2005 and $3,000,000 for each of 
     fiscal years 2006 through 2009.
       (d) Applicability of Title 23.--Funds authorized by this 
     section shall be available for obligation in the same manner 
     as if such funds were apportioned under chapter 1 of title 
     23, United States Code; except that the Federal share of the 
     cost of any project or activity carried out under this 
     section shall be 100 percent, and such funds shall remain 
     available until expended and shall not be transferable.

     SEC. 1804. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Historic covered bridge.--The term ``historic covered 
     bridge'' means a covered bridge that is listed or eligible 
     for listing on the National Register of Historic Places.
       (2) State.--The term ``State'' has the meaning such term 
     has in section 101(a) of title 23, United States Code.
       (b) Historic Covered Bridge Preservation.--The Secretary 
     shall--
       (1) collect and disseminate information on historic covered 
     bridges;
       (2) conduct educational programs relating to the history 
     and construction techniques of historic covered bridges;
       (3) conduct research on the history of historic covered 
     bridges; and
       (4) conduct research on, and study techniques for, 
     protecting historic covered bridges from rot, fire, natural 
     disasters, or weight-related damage.
       (c) Grants.--
       (1) In general.--The Secretary shall make a grant to a 
     State that submits an application to the Secretary that 
     demonstrates a need for assistance in carrying out 1 or more 
     historic covered bridge projects described in paragraph (2).
       (2) Eligible projects.--A grant under paragraph (1) may be 
     made for a project--
       (A) to rehabilitate or repair a historic covered bridge; or
       (B) to preserve a historic covered bridge, including 
     through--
       (i) installation of a fire protection system, including a 
     fireproofing or fire detection system and sprinklers;
       (ii) installation of a system to prevent vandalism and 
     arson; or
       (iii) relocation of a bridge to a preservation site.
       (3) Authenticity requirements.--A grant under paragraph (1) 
     may be made for a project only if--
       (A) to the maximum extent practicable, the project--
       (i) is carried out in the most historically appropriate 
     manner; and
       (ii) preserves the existing structure of the historic 
     covered bridge; and
       (B) the project provides for the replacement of wooden 
     components with wooden components, unless the use of wood is 
     impracticable for safety reasons.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, out of the 
     Highway Trust Fund (other than the Mass Transit Account), 
     $10,000,000 for each of fiscal years 2006 through 2009.
       (e) Applicability of Title 23.--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; except that the 
     Federal share of the cost of any project or activity carried 
     out under this section shall be determined in accordance with 
     section 120 of such title, and such funds shall remain 
     available until expended and shall not be transferable.

     SEC. 1805. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND 
                   OVERPASSES.

       (a) In General.--Any State that demolishes a bridge or an 
     overpass that is eligible for Federal assistance under the 
     highway bridge replacement and rehabilitation program under 
     section 144 of title 23, United States Code, is directed to 
     first make the debris from the demolition of such bridge or 
     overpass available for beneficial use by a Federal, State, or 
     local government, unless such use obstructs navigation.
       (b) Recipient Responsibilities.--A recipient of the debris 
     described in subsection (a) shall--
       (1) bear the additional cost associated with having the 
     debris made available;
       (2) ensure that placement of the debris complies with 
     applicable law; and
       (3) assume all future legal responsibility arising from the 
     placement of the debris, which may include entering into an 
     agreement to hold the owner of the demolished bridge or 
     overpass harmless in any liability action.
       (c) Definition.--In this section, the term ``beneficial 
     use'' means the application of the debris for purposes of 
     shore erosion control or stabilization, ecosystem 
     restoration, and marine habitat creation.

     SEC. 1806. ADDITIONAL 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 2005 through 2009''.

     SEC. 1807. NONMOTORIZED TRANSPORTATION PILOT PROGRAM.

       (a) Establishment.--The Secretary shall establish and carry 
     out a nonmotorized transportation pilot program to construct, 
     in the following 4 communities selected by the Secretary, a 
     network of nonmotorized transportation infrastructure 
     facilities, including sidewalks, bicycle lanes, and 
     pedestrian and bicycle trails, that connect directly with 
     transit stations, schools, residences, businesses, recreation 
     areas, and other community activity centers:
       (1) Columbia, Missouri.
       (2) Marin County, California.
       (3) Minneapolis-St. Paul, Minnesota.
       (4) Sheboygan County, Wisconsin.
       (b) Purpose.--The purpose of the program shall be to 
     demonstrate the extent to which bicycling and walking can 
     carry a significant part of the transportation load, and 
     represent a major portion of the transportation solution, 
     within selected communities.
       (c) Grants.--In carrying out the program, the Secretary may 
     make a grant of $6,250,000 per fiscal year for each of the 
     communities set forth in subsection (a) to State, local, and 
     regional agencies that the Secretary determines are suitably 
     equipped and organized to carry out the objectives and 
     requirements of this section. An agency that receives a grant 
     under this section may suballocate grant funds to a nonprofit 
     organization to carry out the program under this section.
       (d) Statistical Information.--In carrying out the program, 
     the Secretary shall develop statistical information on 
     changes in motor vehicle, nonmotorized transportation, and 
     public transportation usage in communities participating in 
     the program and assess how such changes decrease congestion 
     and energy usage, increase the frequency of bicycling and 
     walking, and promote better health and a cleaner environment.
       (e) Reports.--The Secretary shall submit to Congress an 
     interim report not later than September 30, 2007, and a final 
     report not later than September 30, 2010, on the results of 
     the program.
       (f) Funding.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section, out of the 
     Highway Trust Fund (other than the Mass Transit Account), 
     $25,000,000 for each of fiscal years 2006 through 2009.
       (2) Contract authority.--Funds authorized to be 
     appropriated by this section shall be available for 
     obligation in the same manner and to the same extent as if 
     the funds were apportioned under chapter 1 of title 23, 
     United States Code; except that the Federal share of the cost 
     of the project shall be 100 percent, and the funds shall 
     remain available until expended and shall not be 
     transferable.
       (g) Treatment of Projects.--Notwithstanding any other 
     provision of law, projects assisted under this subsection 
     shall be treated as projects on a Federal-aid system under 
     chapter 1 of title 23, United States Code.

     SEC. 1808. ADDITION TO CMAQ-ELIGIBLE PROJECTS.

       (a) Former 1-Hour Maintenance Areas.--Section 149(b) of 
     title 23, United States Code, is amended in the matter 
     preceding paragraph (1)(A) by inserting ``or is required to 
     prepare, and file with the Administrator of the Environmental 
     Protection Agency, maintenance plans under the Clean Air Act 
     (42 U.S.C. 7401 et seq.)'' after ``1997,''.
       (b) Eligible Projects.--Section 149(b) of such title is 
     amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1)(A)(i) if the Secretary, after consultation with the 
     Administrator determines, on the basis of information 
     published by the Environmental Protection Agency pursuant to 
     section 108(f)(1)(A) of the Clean Air Act (other than clause 
     (xvi)) that the project or program is likely to contribute 
     to--

[[Page H7281]]

       ``(I) the attainment of a national ambient air quality 
     standard; or
       ``(II) the maintenance of a national ambient air quality 
     standard in a maintenance area; and
       ``(ii) a high level of effectiveness in reducing air 
     pollution, in cases of projects or programs where sufficient 
     information is available in the database established pursuant 
     to subsection (h) to determine the relative effectiveness of 
     such projects or programs; or,
       ``(B) in any case in which such information is not 
     available, if the Secretary, after such consultation, 
     determines that the project or program is part of a program, 
     method, or strategy described in such section 
     108(f)(1)(A);''.
       (2) in paragraph (4)--
       (A) by inserting ``, including advanced truck stop 
     electrification systems,'' after ``facility or program''; and
       (B) by striking ``or'' at the end;
       (3) in paragraph (5)--
       (A) by inserting ``improve transportation systems 
     management and operations that mitigate congestion and 
     improve air quality,'' after ``intersections,''; and
       (B) by striking the period at the end and inserting a 
     semicolon; and
       (4) by adding at the end the following:
       ``(6) if the project or program involves the purchase of 
     integrated, interoperable emergency communications equipment; 
     or
       ``(7) if the project or program is for--
       ``(A) the purchase of diesel retrofits that are--
       ``(i) for motor vehicles (as defined in section 216 of the 
     Clean Air Act (42 U.S.C. 7550)); or
       ``(ii) published in the list under subsection (f)(2) for 
     non-road vehicles and non-road engines (as defined in section 
     216 of the Clean Air Act (42 U.S.C. 7550)) that are used in 
     construction projects that are--

       ``(I) located in nonattainment or maintenance areas for 
     ozone, PM10, or PM2.5 (as defined under 
     the Clean Air Act (42 U.S.C. 7401 et seq.)); and
       ``(II) funded, in whole or in part, under this title; or

       ``(B) the conduct of outreach activities that are designed 
     to provide information and technical assistance to the owners 
     and operators of diesel equipment and vehicles regarding the 
     purchase and installation of diesel retrofits.''.
       (c) States Receiving Minimum Apportionment.--Section 149(c) 
     of such title is amended--
       (1) in paragraph (1) by striking ``for any project eligible 
     under the surface transportation program under section 133.'' 
     and inserting the following: ``for any project in the State 
     that--
       ``(A) would otherwise be eligible under this section as if 
     the project were carried out in a nonattainment or 
     maintenance area; or
       ``(B) is eligible under the surface transportation program 
     under section 133.''; and
       (2) in paragraph (2) by striking ``for any project in the 
     State eligible under section 133.'' and inserting the 
     following: ``for any project in the State that--
       ``(A) would otherwise be eligible under this section as if 
     the project were carried out in a nonattainment or 
     maintenance area; or
       ``(B) is eligible under the surface transportation program 
     under section 133.''.
       (d) Cost-Effective Emission Reduction Guidance.--Section 
     149 of such title is amended by adding at the end the 
     following:
       ``(f) Cost-Effective Emission Reduction Guidance.--
       ``(1) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(B) Diesel retrofit.--The term `diesel retrofit' means a 
     replacement, repowering, rebuilding, after treatment, or 
     other technology, as determined by the Administrator.
       ``(2) Emission reduction guidance.--The Administrator, in 
     consultation with the Secretary, shall publish a list of 
     diesel retrofit technologies and supporting technical 
     information for--
       ``(A) diesel emission reduction technologies certified or 
     verified by the Administrator, the California Air Resources 
     Board, or any other entity recognized by the Administrator 
     for the same purpose;
       ``(B) diesel emission reduction technologies identified by 
     the Administrator as having an application and approvable 
     test plan for verification by the Administrator or the 
     California Air Resources Board that is submitted not later 
     that 18 months of the date of enactment of this subsection;
       ``(C) available information regarding the emission 
     reduction effectiveness and cost effectiveness of 
     technologies identified in this paragraph, taking into 
     consideration air quality and health effects.
       ``(3) Priority.--
       ``(A) In general.--States and metropolitan planning 
     organizations shall give priority in distributing funds 
     received for congestion mitigation and air quality projects 
     and programs from apportionments derived from application of 
     sections 104(b)(2)(B) and 104(b)(2)(C) to--
       ``(i) diesel retrofits, particularly where necessary to 
     facilitate contract compliance, and other cost-effective 
     emission reduction activities, taking into consideration air 
     quality and health effects; and
       ``(ii) cost-effective congestion mitigation activities that 
     provide air quality benefits.
       ``(B) Savings.--This paragraph is not intended to disturb 
     the existing authorities and roles of governmental agencies 
     in making final project selections.
       ``(4) No effect on authority or restrictions.--Nothing in 
     this subsection modifies or otherwise affects any authority 
     or restriction established under the Clean Air Act (42 U.S.C. 
     7401 et seq.) or any other law (other than provisions of this 
     title relating to congestion mitigation and air quality).''.
       (e) Improved Interagency Consultation.--Section 149 of such 
     title (as amended by subsection (d)) is amended by adding at 
     the end the following:
       ``(g) Interagency Consultation.--The Secretary shall 
     encourage States and metropolitan planning organizations to 
     consult with State and local air quality agencies in 
     nonattainment and maintenance areas on the estimated emission 
     reductions from proposed congestion mitigation and air 
     quality improvement programs and projects.''.
       (f) Evaluation and Assessment of CMAQ Projects.--Section 
     149 of such title (as amended by subsection (e)) is amended 
     by adding at the end the following:
       ``(h) Evaluation and Assessment of Projects.--
       ``(1) In general.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     evaluate and assess a representative sample of projects 
     funded under the congestion mitigation and air quality 
     program to--
       ``(A) determine the direct and indirect impact of the 
     projects on air quality and congestion levels; and
       ``(B) ensure the effective implementation of the program.
       ``(2) Database.--Using appropriate assessments of projects 
     funded under the congestion mitigation and air quality 
     program and results from other research, the Secretary shall 
     maintain and disseminate a cumulative database describing the 
     impacts of the projects.
       ``(3) Consideration.--The Secretary, in consultation with 
     the Administrator, shall consider the recommendations and 
     findings of the report submitted to Congress under section 
     1110(e) of the Transportation Equity Act for the 21st Century 
     (112 Stat. 144), including recommendations and findings that 
     would improve the operation and evaluation of the congestion 
     mitigation and air quality improvement program.''.
       (g) Flexibility in the State of Montana.--The State of 
     Montana may use funds apportioned under section 104(b)(2) of 
     title 23, United States Code, for the operation of public 
     transit activities that serve a nonattainment or maintenance 
     area.
       (h) Availability of Funds for State of Michigan.--The State 
     of Michigan may use funds apportioned under section 104(b)(2) 
     of such title for the operation and maintenance of 
     intelligent transportation system strategies that serve a 
     nonattainment or maintenance area.
       (i) Availability of Funds for the State of Maine.--The 
     State of Maine may use funds apportioned under section 
     104(b)(2) of such title to support, through September 30, 
     2009, the operation of passenger rail service between Boston, 
     Massachusetts, and Portland, Maine.
       (j) Availability of Funds for Oregon.--The State of Oregon 
     may use funds apportioned on or before September 30, 2009, 
     under section 104(b)(2) of such title to support the 
     operation of additional passenger rail service between Eugene 
     and Portland.
       (k) Availabilty of Funds for Certain Other States.--The 
     States of Missouri, Iowa, Minnesota, Wisconsin, Illinois, 
     Indiana, and Ohio may use funds apportioned under section 
     104(b)(2) of such title to purchase alternative fuel (as 
     defined in section 301 of the Energy Policy Act of 1992 (42 
     U.S.C. 13211)) or biodiesel.
                       Subtitle I--Miscellaneous

     SEC. 1901. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING 
                   FUNDING SOURCES IN TITLE 23.

       (a) In General.--Chapter 3 of title 23, United States Code, 
     is amended by inserting after section 320--
       (1) the following:

     ``Sec. 321. Signs identifying funding sources''; and

       (2) the text of section 154 of the Federal-Aid Highway Act 
     of 1987 (23 U.S.C. 101 note).
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by inserting after the item relating to section 320 
     the following:

``321. Signs identifying funding sources.''.

       (c) Conforming Repeal.--Section 154 of the Federal-Aid 
     Highway Act of 1987 (23 U.S.C. 101 note; 101 Stat. 209) is 
     repealed.

     SEC. 1902. DONATIONS AND CREDITS.

       Section 323 of title 23, United States Code, is amended--
       (1) in the first sentence of subsection (c) by inserting 
     ``, or a local government from offering to donate funds, 
     materials, or services performed by local government 
     employees,'' after ``services''; and
       (2) by striking subsection (e).

     SEC. 1903. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23.

       (a) In General.--Chapter 3 of title 23, United States Code, 
     is amended by inserting after section 312--
       (1) the following:

     ``Sec. 313. Buy America''; and

       (2) the text of section 165 of the Highway Improvement Act 
     of 1982 (23 U.S.C. 101 note; 96 Stat. 2136).
       (b) Clerical Amendment.--The analysis for chapter 3 of such 
     title is amended by inserting after the item relating to 
     section 312 the following:

``313. Buy America.''.

       (c) Conforming Amendments.--Section 313 of such title (as 
     added by subsection (a)) is amended--
       (1) in subsection (a) by striking ``by this Act'' the first 
     place it appears and all that follows through ``of 1978'' and 
     inserting ``to carry out the Surface Transportation 
     Assistance Act of 1982 (96 Stat. 2097) or this title'';
       (2) in subsection (b) by redesignating paragraph (4) as 
     paragraph (3);
       (3) in subsection (d) by striking ``this Act,'' and all 
     that follows through ``Code, which'' and inserting ``the 
     Surface Transportation Assistance Act of 1982 (96 Stat. 2097) 
     or this title that'';

[[Page H7282]]

       (4) by striking subsection (e); and
       (5) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.
       (d) Conforming Repeal.--Section 165 of the Highway 
     Improvement Act of 1982 (23 U.S.C. 101 note; 96 Stat. 2136) 
     is repealed.

     SEC. 1904. STEWARDSHIP AND OVERSIGHT.

       (a) In General.--Section 106 of title 23, United States 
     Code, is amended--
       (1) by striking subsection (e) and inserting the following:
       ``(e) Value Engineering Analysis.--
       ``(1) Definition of value engineering analysis.--
       ``(A) In general.--In this subsection, the term `value 
     engineering analysis' means a systematic process of review 
     and analysis of a project, during the concept and design 
     phases, by a multidisciplined team of persons not involved in 
     the project, that is conducted to provide recommendations 
     such as those described in subparagraph (B) for--
       ``(i) providing the needed functions safely, reliably, and 
     at the lowest overall cost;
       ``(ii) improving the value and quality of the project; and
       ``(iii) reducing the time to complete the project.
       ``(B) Inclusions.--The recommendations referred to in 
     subparagraph (A) include, with respect to a project--
       ``(i) combining or eliminating otherwise inefficient use of 
     costly parts of the original proposed design for the project; 
     and
       ``(ii) completely redesigning the project using different 
     technologies, materials, or methods so as to accomplish the 
     original purpose of the project.
       ``(2) Analysis.--The State shall provide a value 
     engineering analysis or other cost-reduction analysis for--
       ``(A) each project on the Federal-aid system with an 
     estimated total cost of $25,000,000 or more;
       ``(B) a bridge project with an estimated total cost of 
     $20,000,000 or more; and
       ``(C) any other project the Secretary determines to be 
     appropriate.
       ``(3) Major projects.--The Secretary may require more than 
     1 analysis described in paragraph (2) for a major project 
     described in subsection (h).
       ``(4) Requirements.--Analyses described in paragraph (1) 
     for a bridge project shall--
       ``(A) include bridge substructure requirements based on 
     construction material; and
       ``(B) be evaluated--
       ``(i) on engineering and economic bases, taking into 
     consideration acceptable designs for bridges; and
       ``(ii) using an analysis of life-cycle costs and duration 
     of project construction.''; and
       (2) by striking subsections (g) and (h) and inserting the 
     following:
       ``(g) Oversight Program.--
       ``(1) Establishment.--
       ``(A) In general.--The Secretary shall establish an 
     oversight program to monitor the effective and efficient use 
     of funds authorized to carry out this title.
       ``(B) Minimum requirement.--At a minimum, the program shall 
     be responsive to all areas relating to financial integrity 
     and project delivery.
       ``(2) Financial integrity.--
       ``(A) Financial management systems.--The Secretary shall 
     perform annual reviews that address elements of the State 
     transportation departments' financial management systems that 
     affect projects approved under subsection (a).
       ``(B) Project costs.--The Secretary shall develop minimum 
     standards for estimating project costs and shall periodically 
     evaluate the practices of States for estimating project 
     costs, awarding contracts, and reducing project costs.
       ``(3) Project delivery.--The Secretary shall perform annual 
     reviews that address elements of the project delivery system 
     of a State, which elements include 1 or more activities that 
     are involved in the life cycle of a project from conception 
     to completion of the project.
       ``(4) Responsibility of the states.--
       ``(A) In general.--The States shall be responsible for 
     determining that subrecipients of Federal funds under this 
     title have--
       ``(i) adequate project delivery systems for projects 
     approved under this section; and
       ``(ii) sufficient accounting controls to properly manage 
     such Federal funds.
       ``(B) Periodic review.--The Secretary shall periodically 
     review the monitoring of subrecipients by the States.
       ``(5) Specific oversight responsibilities.--
       ``(A) Effect of section.--Nothing in this section shall 
     affect or discharge any oversight responsibility of the 
     Secretary specifically provided for under this title or other 
     Federal law.
       ``(B) Appalachian development highways.--The Secretary 
     shall retain full oversight responsibilities for the design 
     and construction of all Appalachian development highways 
     under section 14501 of title 40.
       ``(h) Major Projects.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, a recipient of Federal financial assistance for 
     a project under this title with an estimated total cost of 
     $500,000,000 or more, and recipients for such other projects 
     as may be identified by the Secretary, shall submit to the 
     Secretary for each project--
       ``(A) a project management plan; and
       ``(B) an annual financial plan.
       ``(2) Project management plan.--A project management plan 
     shall document--
       ``(A) the procedures and processes that are in effect to 
     provide timely information to the project decisionmakers to 
     effectively manage the scope, costs, schedules, and quality 
     of, and the Federal requirements applicable to, the project; 
     and
       ``(B) the role of the agency leadership and management team 
     in the delivery of the project.
       ``(3) Financial plan.--A financial plan shall--
       ``(A) be based on detailed estimates of the cost to 
     complete the project; and
       ``(B) provide for the annual submission of updates to the 
     Secretary that are based on reasonable assumptions, as 
     determined by the Secretary, of future increases in the cost 
     to complete the project.
       ``(i) Other Projects.--A recipient of Federal financial 
     assistance for a project under this title with an estimated 
     total cost of $100,000,000 or more that is not covered by 
     subsection (h) shall prepare an annual financial plan. Annual 
     financial plans prepared under this subsection shall be made 
     available to the Secretary for review upon the request of the 
     Secretary.''.
       (b) Conforming Amendments.--Section 114(a) of title 23, 
     United States Code, is amended--
       (1) in the first sentence by striking ``highways or 
     portions of highways located on a Federal-aid system'' and 
     inserting ``Federal-aid highway or a portion of a Federal-aid 
     highway''; and
       (2) by striking the second sentence and inserting ``The 
     Secretary shall have the right to conduct such inspections 
     and take such corrective action as the Secretary determines 
     to be appropriate.''.

     SEC. 1905. TRANSPORTATION DEVELOPMENT CREDITS.

       Section 120(j)(1) of title 23, United States Code, is 
     amended--
       (1) by striking ``A State'' and inserting the following:
       ``(A) In general.--A State''; and
       (2) by striking the last sentence and inserting the 
     following:
       ``(B) Special rule for use of federal funds.--If the 
     public, quasi-public, or private agency has built, improved, 
     or maintained the facility using Federal funds, the credit 
     under this paragraph shall be reduced by a percentage equal 
     to the percentage of the total cost of building, improving, 
     or maintaining the facility that was derived from Federal 
     funds.
       ``(C) Federal funds defined.--In this paragraph, the term 
     `Federal funds' does not include loans of Federal funds or 
     other financial assistance that must be repaid to the 
     Government.''.

     SEC. 1906. GRANT PROGRAM TO PROHIBIT RACIAL PROFILING.

       (a) Grants.--Subject to the requirements of this section, 
     the Secretary shall make grants to a State that--
       (1)(A) has enacted and is enforcing a law that prohibits 
     the use of racial profiling in the enforcement of State laws 
     regulating the use of Federal-aid highways; and
       (B) is maintaining and allows public inspection of 
     statistical information for each motor vehicle stop made by a 
     law enforcement officer on a Federal-aid highway in the State 
     regarding the race and ethnicity of the driver and any 
     passengers; or
       (2) provides assurances satisfactory to the Secretary that 
     the State is undertaking activities to comply with the 
     requirements of paragraph (1).
       (b) Eligible Activities.--A grant received by a State under 
     subsection (a) shall be used by the State--
       (1) in the case of a State eligible under subsection 
     (a)(1), for costs of--
       (A) collecting and maintaining of data on traffic stops;
       (B) evaluating the results of the data; and
       (C) developing and implementing programs to reduce the 
     occurrence of racial profiling, including programs to train 
     law enforcement officers; and
       (2) in the case of a State eligible under subsection 
     (a)(2), for costs of--
       (A) activities to comply with the requirements of 
     subsection (a)(1); and
       (B) any eligible activity under paragraph (1).
       (c) Racial Profiling.--
       (1) In general.--To meet the requirement of subsection 
     (a)(1), a State law shall prohibit, in the enforcement of 
     State laws regulating the use of Federal-aid highways, a 
     State or local law enforcement officer from using the race or 
     ethnicity of the driver or passengers to any degree in making 
     routine or spontaneous law enforcement decisions, such as 
     ordinary traffic stops on Federal-aid highways.
       (2) Limitation.--Nothing in this subsection shall alter the 
     manner in which a State or local law enforcement officer 
     considers race or ethnicity whenever there is trustworthy 
     information, relevant to the locality or time frame, that 
     links persons of a particular race or ethnicity to an 
     identified criminal incident, scheme, or organization.
       (d) Limitations.--
       (1) Maximum amount of grants.--The total amount of grants 
     made to a State under this section in a fiscal year may not 
     exceed 5 percent of the amount made available to carry out 
     this section in the fiscal year.
       (2) Eligibility.--A State may not receive a grant under 
     subsection (a)(2) in more than 2 fiscal years.
       (e) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $7,500,000 for each of 
     fiscal years 2005 through 2009.
       (2) Contract authority.--Funds authorized by this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code, except the Federal share of the 
     cost of activities carried out using such funds shall be 80 
     percent, and such funds shall remain available until expended 
     and shall not be transferable.

     SEC. 1907. PAVEMENT MARKING SYSTEMS DEMONSTRATION PROJECTS.

       (a) In General.--The Secretary shall conduct a 
     demonstration project in the State of Alaska,

[[Page H7283]]

     and a demonstration project in the State of Tennessee, to 
     study the safety impacts, environmental impacts, and cost 
     effectiveness of different pavement marking systems and the 
     effect of State bidding and procurement processes on the 
     quality of pavement marking material employed in highway 
     projects. The demonstration projects shall each include an 
     evaluation of the impacts and effectiveness of increasing the 
     width of pavement marking edge lines from 4 inches to 6 
     inches and an evaluation of advanced acrylic water-borne 
     pavement markings.
       (b) Report.--Not later than June 30, 2009, the Secretary 
     shall submit to Congress a report on the results of the 
     demonstration projects, together with findings and 
     recommendations on methods that will optimize the cost-
     benefit ratio of the use of Federal funds on pavement 
     marking.
       (c) Funding.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section, out of the 
     Highway Trust Fund (other than the Mass Transit Account), 
     $1,000,000 for each of fiscal years 2006 through 2009.
       (2) Contract authority.--Funds authorized to be 
     appropriated by this section shall be available for 
     obligation in the same manner and to the same extent as if 
     such funds were apportioned under chapter 1 of title 23, 
     United States Code; expect that the Federal share of the cost 
     of the demonstration projects shall be 100 percent, and such 
     funds shall remain available until expended and shall not be 
     transferable.

     SEC. 1908. INCLUSION OF CERTAIN ROUTE SEGMENTS ON INTERSTATE 
                   SYSTEM AND NHS.

       (a) Interstate System.--
       (1) Creek turnpike, oklahoma.--The Secretary shall 
     designate as part of the Interstate System (as defined in 
     section 101 of title 23, United States Code) in accordance 
     with section 103(c)(4) of such title the portion of the Creek 
     Turnpike connecting Interstate Route 44 east and west of 
     Tulsa, Oklahoma.
       (2) Certain section of interstate route 181.--The Secretary 
     shall designate as part of Interstate Route 26 the 11-mile 
     section of Interstate Route 181 lying northwest of the 
     intersection with Interstate Route 81, Tennessee.
       (3) Treatment.--The designations under paragraph (2) shall 
     be treated, for purposes of title 23, United States Code, as 
     being made under section 103(c)(4) of such title.
       (b) National Highway System.--The Secretary shall designate 
     as a component of the National Highway System in accordance 
     with section 103(b)(4) of title 23, United States Code, the 
     portion of United States Route 271 from the Arkansas State 
     line, west to the intersection with United States Route 59, 
     and northwest to the intersection with Interstate Route 40, 
     Sallisaw, Oklahoma.

     SEC. 1909. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

       (a) Declaration of Policy.--Section 101(b) of title 23, 
     United States Code, is amended--
       (1) by striking ``(b) It is hereby declared'' and all that 
     follows through the first undesignated paragraph and 
     inserting the following:
       ``(b) Declaration of Policy.--
       ``(1) Acceleration of construction of federal-aid highway 
     systems.--Congress declares that it is in the national 
     interest to accelerate the construction of Federal-aid 
     highway systems, including the Dwight D. Eisenhower National 
     System of Interstate and Defense, because many of the 
     highways (or portions of the highways) are inadequate to meet 
     the needs of local and interstate commerce for the national 
     and civil defense.'';
       (2) in the second undesignated paragraph by striking ``It 
     is hereby declared'' and all that follows through 
     ``objectives of this Act'' and inserting the following:
       ``(2) Completion of interstate system.--Congress declares 
     that the prompt and early completion of the Dwight D. 
     Eisenhower National System of Interstate and Defense Highways 
     (referred to in this section as the `Interstate System'), so 
     named because of its primary importance to the national 
     defense, is essential to the national interest''; and
       (3) by striking the third undesignated paragraph and 
     inserting the following:
       ``(3) Transportation needs of 21st century.--Congress 
     declares that--
       ``(A) it is in the national interest to preserve and 
     enhance the surface transportation system to meet the needs 
     of the United States for the 21st Century;
       ``(B) the current urban and long distance personal travel 
     and freight movement demands have surpassed the original 
     forecasts and travel demand patterns are expected to continue 
     to change;
       ``(C) continued planning for and investment in surface 
     transportation is critical to ensure the surface 
     transportation system adequately meets the changing travel 
     demands of the future;
       ``(D) among the foremost needs that the surface 
     transportation system must meet to provide for a strong and 
     vigorous national economy are safe, efficient, and reliable--
       ``(i) national and interregional personal mobility 
     (including personal mobility in rural and urban areas) and 
     reduced congestion;
       ``(ii) flow of interstate and international commerce and 
     freight transportation; and
       ``(iii) travel movements essential for national security;
       ``(E) special emphasis should be devoted to providing safe 
     and efficient access for the type and size of commercial and 
     military vehicles that access designated National Highway 
     System intermodal freight terminals;
       ``(F) the connection between land use and infrastructure is 
     significant;
       ``(G) transportation should play a significant role in 
     promoting economic growth, improving the environment, and 
     sustaining the quality of life; and
       ``(H) the Secretary should take appropriate actions to 
     preserve and enhance the Interstate System to meet the needs 
     of the 21st Century.''.
       (b) National Surface Transportation Policy and Revenue 
     Study Commission.--
       (1) Establishment.--There is established a commission to be 
     known as the ``National Surface Transportation Policy and 
     Revenue Study Commission'' (in this subsection referred to as 
     the ``Commission'').
       (2) Membership.--
       (A) Composition.--The Commission shall be composed of 12 
     members, of whom--
       (i) 1 member shall be the Secretary, who shall serve as 
     Chairperson;
       (ii) 3 members shall be appointed by the President;
       (iii) 2 members shall be appointed by the Speaker of the 
     House of Representatives;
       (iv) 2 members shall be appointed by the minority leader of 
     the House of Representatives;
       (v) 2 members shall be appointed by the majority leader of 
     the Senate; and
       (vi) 2 members shall be appointed by the minority leader of 
     the Senate.
       (B) Qualifications.--Members appointed under subparagraph 
     (A)--
       (i) shall include--

       (I) individuals representing State and local governments, 
     metropolitan planning organizations, transportation-related 
     industries, and public interest organizations involved with 
     scientific, regulatory, economic, and environmental 
     activities relating to transportation;
       (II) individuals with a background in public finance, 
     including experience in developing State and local revenue 
     resources;
       (III) individuals involved in surface transportation 
     program administration;
       (IV) individuals that have conducted academic research into 
     related issues; and
       (V) individuals that provide unique perspectives on current 
     and future requirements for revenue sources to support the 
     Highway Trust Fund and policies impacting those revenues; and

       (ii) shall be balanced geographically to the extent 
     consistent with maintaining the highest level of expertise on 
     the Commission.
       (C) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 120 days after 
     the date of establishment of the Commission.
       (D) Terms.--A member shall be appointed for the life of the 
     Commission.
       (E) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (F) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (G) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (H) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (I) Vice chairperson.--The Commission shall select a Vice 
     Chairperson from among the appointed members of the 
     Commission.
       (3) Duties.--
       (A) In general.--The Commission shall--
       (i) conduct a comprehensive study of--

       (I) the current condition and future needs of the surface 
     transportation system;
       (II) short-term sources of Highway Trust Fund revenues;
       (III) long-term alternatives to replace or supplement the 
     fuel tax as the principal revenue source to support the 
     Highway Trust Fund, including new or alternate sources of 
     revenue;
       (IV) revenue sources to fund the needs of the surface 
     transportation system over at least the 30-year period 
     beginning on the date of enactment of this Act, including new 
     or alternate sources of revenue;
       (V) revenues flowing into the Highway Trust Fund under laws 
     in existence on the date of enactment of this Act, including 
     individual components of the overall flow of the revenues; 
     and
       (VI) whether the amount of revenues described in subclause 
     (V) is likely to increase, decrease, or remain constant 
     absent any change in law, taking into consideration the 
     impact of possible changes in public vehicular choice, fuel 
     use, and travel alternatives that could be expected to reduce 
     or increase revenues into the Highway Trust Fund;

       (B) develop a conceptual plan, with alternative approaches, 
     to ensure that the surface transportation system will 
     continue to serve the needs of the United States, including 
     specific recommendations regarding design and operational 
     standards, Federal policies, and legislative changes;
       (C) consult with the Secretary of the Treasury in 
     conducting the study to ensure that the views of the 
     Secretary concerning essential attributes of Highway Trust 
     Fund revenue alternatives are considered;
       (D) consult with representatives of State departments of 
     transportation and metropolitan planning organizations and 
     other key interested stakeholders in conducting the study to 
     ensure that--
       (i) the views of the stakeholders on alternative revenue 
     sources to support State transportation improvement programs 
     are considered; and
       (ii) any recommended Federal financing strategy takes into 
     account State financial requirements; and
       (E) based on the study, make specific recommendations 
     regarding--
       (i) actions that should be taken to develop alternative 
     revenue sources to sup port the Highway Trust Fund; and
       (ii) the time frame for taking those actions.
       (4) Related work.--To the maximum extent practicable, the 
     study shall build on related work that has been completed 
     by--

[[Page H7284]]

       (A) the Secretary;
       (B) the Secretary of Energy;
       (C) the Transportation Research Board, including the 
     findings, conclusions, and recommendations of the recent 
     study conducted by the Transportation Research Board on 
     alternatives to the fuel tax to support highway program 
     financing; and
       (D) other entities and persons.
       (5) Surface transportation needs.--With respect to surface 
     transportation needs, the investigation and study shall 
     specifically address--
       (A) the current condition and performance of the Interstate 
     System (including the physical condition of bridges and 
     pavements and operational characteristics and performance), 
     relying primarily on existing data sources;
       (B) the future of the Interstate System, based on a range 
     of legislative and policy approaches for 15-, 30-, and 50-
     year time periods;
       (C) the expected demographics and business uses that impact 
     the surface transportation system;
       (D) the expected use of the surface transportation system, 
     including the effects of changing vehicle types, modes of 
     transportation, fleet size and weights, and traffic volumes;
       (E) desirable design policies and standards for future 
     improvements of the surface transportation system, including 
     additional access points;
       (F) the identification of urban, rural, national, and 
     interregional needs for the surface transportation system;
       (G) the potential for expansion, upgrades, or other changes 
     to the surface transportation system, including--
       (i) deployment of advanced materials and intelligent 
     technologies;
       (ii) critical multistate, urban, and rural corridors 
     needing capacity, safety, and operational enhancements;
       (iii) improvements to intermodal linkages;
       (iv) security and military deployment enhancements;
       (v) strategies to enhance asset preservation; and
       (vi) implementation strategies;
       (H) the improvement of emergency preparedness and 
     evacuation using the surface transportation system, 
     including--
       (i) examination of the potential use of all modes of the 
     surface transportation system in the safe and efficient 
     evacuation of citizens during times of emergency;
       (ii) identification of the location of critical 
     bottlenecks; and
       (iii) development of strategies to improve system 
     redundancy, especially in areas with a high potential for 
     terrorist attacks;
       (I) alternatives for addressing environmental concerns 
     associated with the future development of the surface 
     transportation system;
       (J) the assessment of the current and future capabilities 
     for conducting system-wide real-time performance data 
     collection and analysis, traffic monitoring, and 
     transportation systems operations and management; and
       (K) policy and legislative alternatives for addressing 
     future needs for the surface transportation system.
       (6) Financing.--With respect to financing, the study shall 
     address specifically--
       (A) the advantages and disadvantages of alternative revenue 
     sources to meet anticipated Federal surface transportation 
     financial requirements;
       (B) recommendations concerning the most promising revenue 
     sources to support long-term Federal surface transportation 
     financing requirements;
       (C) development of a broad transition strategy to move from 
     the current tax base to new funding mechanisms, including the 
     time frame for various components of the transition strategy;
       (D) recommendations for additional research that may be 
     needed to implement recommended alternatives; and
       (E) the extent to which revenues should reflect the 
     relative use of the highway system.
       (7) Financing recommendations.--
       (A) Factors for consideration.--In developing financing 
     recommendations under this subsection, the Commission shall 
     consider--
       (i) the ability to generate sufficient revenues from all 
     modes to meet anticipated long-term surface transportation 
     financing needs;
       (ii) the roles of the various levels of government and the 
     private sector in meeting future surface transportation 
     financing needs;
       (iii) administrative costs (including enforcement costs) to 
     implement each option;
       (iv) the expected increase in nontaxed fuels and the impact 
     of taxing those fuels;
       (v) the likely technological advances that could ease 
     implementation of each option;
       (vi) the equity and economic efficiency of each option;
       (vii) the flexibility of different options to allow various 
     pricing alternatives to be implemented; and
       (viii) potential compatibility issues with State and local 
     tax mechanisms under each alternative.
       (B) Need and revenue analysis.--In developing financing 
     recommendations under this subsection, the Commission shall 
     distinguish between--
       (i) the needs of, and revenues for, the surface 
     transportation system that are eligible to receive funds from 
     the Highway Trust Fund; and
       (ii) the needs for projects and programs that are not 
     eligible to receive funds from the Highway Trust Fund.
       (8) Technical advisory committee.--The Secretary shall 
     establish a technical advisory committee, in a manner 
     consistent with the Federal Advisory Committee Act (5 U.S.C. 
     App.), to collect and evaluate technical input from--
       (A) appropriate Federal, State, and local officials with 
     responsibility for transportation;
       (B) appropriate State and local elected officials;
       (C) transportation and trade associations;
       (D) emergency management officials;
       (E) freight providers;
       (F) the general public; and
       (G) other entities and persons determined to be appropriate 
     by the Secretary to ensure a diverse range of views.
       (9) Report and recommendations.--Not later than July 1, 
     2007, the Commission shall submit to Congress--
       (A) a final report that contains a detailed statement of 
     the findings and conclusions of the Commission; and
       (B) the recommendations of the Commission for such 
     legislation and administrative actions as the Commission 
     considers to be appropriate.
       (10) Powers of the commission.--
       (A) Hearings.--The Commission may hold such hearings, meet 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this section.
       (B) Information from federal agencies.--
       (i) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     necessary to carry out this section.
       (ii) Provision of information.--On request of the 
     Chairperson of the Commission, the head of a Federal agency 
     shall provide the requested information to the Commission.
       (C) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (D) Donations.--The Commission may accept, use, and dispose 
     of donations of services or property.
       (11) Commission personnel matters.--
       (A) Members.--A member of the Commission shall serve 
     without pay but shall be allowed travel expenses, including 
     per diem in lieu of subsistence, at rates authorized for an 
     employee of an agency under subchapter I of chapter 57 of 
     title 5, United States Code, while away from the home or 
     regular place of business of the member in the performance of 
     the duties of the Commission.
       (B) Contractors.--The Commission may enter into agreements 
     with an appropriate organizations, agencies, and entities to 
     conduct the study required under this section, under the 
     strategic guidance of the Commission.
       (C) Administrative support.--On the request of the 
     Commission, the Administrator of the Federal Highway 
     Administration shall provide to the Commission, on a 
     reimbursable basis, the administrative support and services 
     necessary for the Commission to carry out the duties of the 
     Commission under this section.
       (D) Detail of personnel.--
       (i) In general.--On the request of the Commission, the 
     Secretary may detail, on a reimbursable basis, any of the 
     personnel of the Department to the Commission to assist the 
     Commission in carrying out the duties of the Commission under 
     this section.
       (ii) Civil service status.--The detail of the employee 
     shall be without interruption or loss of civil service status 
     or privilege.
       (12) Cooperation.--The staff of the Secretary shall 
     cooperate with the Commission in the study required under 
     this section, including providing such nonconfidential data 
     and information as are necessary to conduct the study.
       (13) Relationship to other law.--
       (A) In general.--Except as provided in subparagraphs (B) 
     and (C), 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) Federal share.--The Federal share of the cost of the 
     study and the Commission under this section shall be 100 
     percent.
       (C) Availability.--Funds made available to carry out this 
     section shall remain available until expended.
       (14) Definition of surface transportation system.--In this 
     subsection, the term ``surface transportation system'' 
     includes--
       (A) the National Highway System, as defined in section 
     103(b) of title 23, United States Code;
       (B) congressional high priority corridors;
       (C) intermodal connectors;
       (D) intermodal freight facilities;
       (E) public transportation infrastructure and facilities; 
     and
       (F) freight and intercity passenger bus and rail 
     infrastructure and facilities.
       (15) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section 
     $1,400,000 for each of fiscal years 2006 and 2007.
       (16) Applicability of title 23.--Funds made available to 
     carry out this section shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; except that such 
     funds shall remain available until expended, and the Federal 
     share of the cost of a project under this section shall be as 
     provided in this section.
       (17) Termination.--
       (A) In general.--The Commission shall terminate on the date 
     that is 180 days after the date on which the Commission 
     submits the report of the Commission under paragraph (9).
       (B) Records.--Not later than the date of termination of the 
     Commission under subparagraph (A), all records and papers of 
     the Commission shall be delivered to the Archivist of the 
     United States for deposit in the National Archives.

     SEC. 1910. MOTORIST INFORMATION CONCERNING FULL SERVICE 
                   RESTAURANTS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary may initiate a rulemaking to determine 
     whether--

[[Page H7285]]

       (1) full service restaurants should be given priority on 
     not more than 2 panels of the camping or attractions logo-
     specific service signs in the Manual on Uniform Traffic 
     Control Devices of the Department of Transportation when the 
     food logo-specific service sign is fully used; and
       (2) full service restaurants should be given priority on 
     not more than 2 panels of the food logo-specific service 
     signs in such Manual when the camping or attractions logo 
     specific service signs are fully used.

     SEC. 1911. APPROVAL AND FUNDING FOR CERTAIN CONSTRUCTION 
                   PROJECTS.

       (a) Project Approval.--If the Secretary finds that the 
     project number STP-189-1(15)CT 3 in Gwinnett County, Georgia, 
     was not listed in the current regional transportation plan 
     because of a clerical error, such failure to be listed shall 
     not be a basis for not approving the project. The Secretary 
     shall make a final decision on the approval of the project 
     within 30 days after the date of receipt by the Secretary of 
     a construction authorization request from the department of 
     transportation for the State of Georgia.
       (b) Conformity Determination.--
       (1) In general.--Approval, funding, and implementation of 
     the project referred to in subsection (a) shall not be 
     subject to the requirements of part 93 of title 40, Code of 
     Federal Regulations (or successor regulations).
       (2) Regional emissions.--Notwithstanding paragraph (1), all 
     subsequent regional emission analyses required by section 
     93.118 or 93.119 of title 40, Code of Federal Regulations (or 
     successor regulations), shall include the project.

     SEC. 1912. LEAD AGENCY DESIGNATION.

       The public entity established under California law in 1989 
     to acquire rights-of-way in northwestern California to 
     maintain surface transportation infrastructure is designated 
     as the lead agency for the purpose of accepting Federal funds 
     authorized under item 13 of the table contained in section 
     1108(b) of the Intermodal Surface Transportation Efficiency 
     Act of 1991 (105 Stat. 2061).

     SEC. 1913. BRIDGE CONSTRUCTION, NORTH DAKOTA.

       Notwithstanding any other provision of law, and regardless 
     of the source of Federal funds, the Federal share of the 
     eligible costs of construction of a bridge between Bismarck, 
     North Dakota, and Mandan, North Dakota, shall be 90 percent.

     SEC. 1914. MOTORCYCLIST ADVISORY COUNCIL.

       (a) In General.--The Secretary, acting through the 
     Administrator of the Federal Highway Administration, in 
     consultation with the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate, 
     shall appoint a Motorcyclist Advisory Council to coordinate 
     with and advise the Administrator on infrastructure issues of 
     concern to motorcyclists, including--
       (1) barrier design;
       (2) road design, construction, and maintenance practices; 
     and
       (3) the architecture and implementation of intelligent 
     transportation system technologies.
       (b) Composition.--The Council shall consist of not more 
     than 10 members of the motorcycling community with 
     professional expertise in national motorcyclist safety 
     advocacy, including--
       (1) at least--
       (A) 1 member recommended by a national motorcyclist 
     association;
       (B) 1 member recommended by a national motorcycle riders 
     foundation;
       (C) 1 representative of the National Association of State 
     Motorcycle Safety Administrators;
       (D) 2 members of State motorcyclists' organizations;
       (E) 1 member recommended by a national organization that 
     represents the builders of highway infrastructure;
       (F) 1 member recommended by a national association that 
     represents the traffic safety systems industry; and
       (G) 1 member of a national safety organization; and
       (2) at least 1, and not more than 2, motorcyclists who are 
     traffic system design engineers or State transportation 
     department officials.

     SEC. 1915. LOAN FORGIVENESS.

       Debt outstanding as of the date of enactment of this Act 
     for project number Q-DPM-0013(001) carried out under section 
     108(c) of title 23, United States Code, is deemed satisfied.

     SEC. 1916. TREATMENT OF OFF RAMP.

       Notwithstanding any other provision of law, the New Harbor 
     Boulevard North off-ramp project along the Interstate Route 
     405 Collector-Distributor Road in Costa Mesa, California 
     (Susan Street Slip-Ramp), shall be treated for purposes of 
     title 23, United States Code, as satisfying all Federal 
     requirements, and the California State department of 
     transportation shall authorize any final environmental, 
     engineering, or design analyses necessary to approve, as 
     expeditiously as possible, construction of the project 
     consistent with applicable California State operational and 
     safety standards.

     SEC. 1917. OPENING OF INTERSTATE RAMPS.

       (a) In General.--The Maryland State highway administration 
     and the Federal Highway Administration shall work 
     cooperatively--
       (1) to expedite the project being developed as of the date 
     of enactment of this Act to improve Interstate Route 495 
     through the area of the Arena Drive interchange to allow for 
     safe exit, including improvements to the adjacent 
     interchanges upstream and downstream along Interstate Route 
     495; and
       (2) to expedite action on the Interstate access request so 
     that the Interstate Route 495/Arena Drive interchange can be 
     opened safely to all vehicles 24 hours per day, 7 days per 
     week.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the status of opening the Interstate Route 495/
     Arena Drive interchange to full-time use.

     SEC. 1918. CREDIT TO STATE OF LOUISIANA FOR STATE MATCHING 
                   FUNDS.

       (a) In General.--The Secretary may provide a credit to the 
     State of Louisiana in an amount equal to non Federal Share of 
     the cost of any planning, engineering, design, or 
     construction work carried out by the State on any project 
     that the Secretary determines is integral to the project 
     authorized by item number 202 in the table contained in 
     section 1602 of the Transportation Equity Act for the 21st 
     Century (112 Stat. 264).
       (b) Eligibility of Credit.--The credit may be used for any 
     future payment relating to the completion of the project 
     referred to in subsection (a) that is required by the State 
     under title 23, United States Code.

     SEC. 1919. ROAD USER FEES.

       (a) Study.--The Secretary shall enter into an agreement 
     with the Public Policy Center of the University of Iowa for 
     an analysis and report to the Secretary and the Secretary of 
     the Treasury on a long-term field test of an approach to 
     assessing highway use fees based upon actual mileage driven 
     by a specific vehicle on specific types of highways by use of 
     an onboard computer--
       (1) which is linked to satellites to calculate highway 
     mileage traversed;
       (2) which computes the appropriate highway use fees 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 fees due in each jurisdiction traversed; and
       (4) which includes methods of ensuring privacy of road 
     users.
       (b) Components of Field Test.--The components of the field 
     test shall include 2 years for preparation, including 
     selection of vendors and test participants, and a 3-year 
     testing period.
       (c) Reports.--The Secretary shall submit annual reports on 
     the status of the analysis and, not later than July 1, 2009, 
     a final report on the results of the analysis, together with 
     findings and recommendations. The reports shall be submitted 
     to the Secretary of the Treasury, the Committee on 
     Transportation and Infrastructure and the Committee on Ways 
     and Means of the House of Representatives, and the Committee 
     on Environment and Public Works and the Committee on Finance 
     of the Senate.
       (d) Authorization of Appropriation.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $2,000,000 fiscal year 
     2006 and $3,500,000 for each of fiscal years 2007, 2008, and 
     2009.
       (2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code; except the Federal share of the 
     cost of the analysis and report shall be 100 percent, and 
     such funds shall remain available until expended and shall 
     not be transferable.

     SEC. 1920. TRANSPORTATION AND LOCAL WORKFORCE INVESTMENT.

       (a) Findings.--Congress finds the following:
       (1) Federal-aid highway programs provide State and local 
     governments and other recipients substantial funds for 
     projects that produce significant employment and job-training 
     opportunities.
       (2) Every $1,000,000,000 in Federal infrastructure 
     investment creates an estimated 47,500 jobs.
       (3) Jobs in transportation construction, including 
     apprenticeship positions, typically pay more than twice the 
     minimum wage, and include health and other benefits.
       (4) Transportation projects provide the impetus for job 
     training and employment opportunities for low income 
     individuals residing in the area in which a transportation 
     project is planned.
       (5) Transportation projects can offer young people, 
     particularly those who are economically disadvantaged, the 
     opportunity to gain productive employment.
       (6) The Alameda Corridor, a $2,400,000,000 transportation 
     project, is an example of a transportation project that 
     included a local hiring provision resulting in a full 30 
     percent of the project jobs being filled by locally hired and 
     trained men and women.
       (b) Sense of Congress.--It is the sense of Congress that 
     Federal transportation projects should facilitate and 
     encourage the collaboration between interested persons, 
     including Federal, State, and local governments, community 
     colleges, apprentice programs, local high schools, and other 
     community-based organizations that have an interest in 
     improving the job skills of low-income individuals, to help 
     leverage scarce training and community resources and to help 
     ensure local participation in the building of transportation 
     projects.

     SEC. 1921. UPDATE OF OBSOLETE TEXT.

       Section 137(a) of title 23, United States Code, is amended 
     in the first sentence by striking ``on the Federal-aid urban 
     system'' and inserting ``on a Federal-aid highway''.

     SEC. 1922. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION.

       (a) State Assurances.--Section 140(a) of title 23, United 
     States Code, is amended--
       (1) in the first sentence by striking ``subsection (a) of 
     section 105 of this title'' and inserting ``section 135'';
       (2) in the second sentence by striking ``He'' and inserting 
     ``The Secretary'';
       (3) in the third sentence--
       (A) by striking ``shall, where he considers it necessary to 
     assure'' and inserting ``if necessary to ensure''; and
       (B) by inserting ``shall'' after ``opportunity,''; and

[[Page H7286]]

       (4) in the last sentence--
       (A) by striking ``him'' and inserting ``the Secretary'' and
       (B) by striking ``he'' and inserting ``the Secretary of 
     Transportation''.
       (b) Highway Construction and Technology Training.--Section 
     140(b) of such title is amended--
       (1) in the first sentence by striking ``highway 
     construction'' and inserting ``surface transportation''; and
       (2) in the second sentence--
       (A) by striking ``he may deem''; and
       (B) by striking ``not to exceed $2,500,000 for the 
     transition quarter ending September 30, 1976, and''.
       (c) Minority Business Training Programs.--Section 140(c) of 
     such title is amended in the second sentence--
       (1) by striking ``subsection 104(b)(3) of this title'' and 
     inserting ``section 104(b)(3)''; and
       (2) by striking ``he may deem''.
       (d) Technical Amendment.--Section 140(d) of such title is 
     amended in the subsection heading by striking ``and 
     Contracting''.

     SEC. 1923. TRANSPORTATION ASSETS AND NEEDS OF DELTA REGION.

       (a) Agreement.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall enter into an 
     agreement with the Delta Regional Authority (in this section 
     referred to as the ``DRA'') to conduct a comprehensive study 
     of transportation assets and needs for all modes of 
     transportation (including passenger and freight 
     transportation) in the 8 States comprising the Delta region 
     (Alabama, Arkansas, Illinois, Kentucky, Louisiana, 
     Mississippi, Missouri, and Tennessee).
       (b) Consultation.--Under the agreement, the DRA, in 
     conducting the study, shall consult with the Department, 
     State transportation departments, local planning and 
     development districts, local and regional governments, and 
     metropolitan planning organizations.
       (c) Report.--Under the agreement, the DRA, not later than 2 
     years after the date of entry into the agreement, shall 
     submit to the Secretary and the Committee on Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     final report on the results of the study, together with such 
     recommendations as the DRA considers to be appropriate.
       (d) Plan.--Under the agreement, the DRA, upon completion of 
     the report, shall establish a regional strategic plan to 
     implement the recommendations of the report.
       (e) Funding.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account), to carry out this section $500,000 
     for each of the fiscal years 2005 and 2006.
       (2) Contract authority.--Funds authorized by this section 
     shall be available for obligation in the same manner and to 
     the same extent as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; except that such 
     funds shall remain available until expended and shall not be 
     transferable.

     SEC. 1924. ALASKA WAY VIADUCT STUDY.

       (a) Findings.--Congress finds that--
       (1) in 2001, the Alaska Way Viaduct, a critical segment of 
     the National Highway System in Seattle, Washington, was 
     seriously damaged by the Nisqually earthquake;
       (2) an effort to address the possible repair, retrofit, or 
     replacement of the Viaduct that conforms with the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) is 
     underway; and
       (3) as a result of the efforts referred to in paragraph 
     (2), a locally preferred alternative for the Viaduct is being 
     developed.
       (b) Study.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary, in cooperation with the 
     Washington State department of transportation and the city of 
     Seattle, Washington, shall conduct a comprehensive study to 
     determine the specific damage to the Alaska Way Viaduct from 
     the Nisqually earthquake of 2001 that contribute to the 
     ongoing degradation of the Viaduct.
       (2) Requirements.--The study under paragraph (1) shall--
       (A) identify any repair, retrofit, and replacement costs 
     for the Viaduct that are eligible for additional assistance 
     from the emergency fund authorized under section 125 of title 
     23, United States Code, consistent with the emergency relief 
     manual governing eligible expenses from the emergency fund; 
     and
       (B) determine the amount of assistance from the emergency 
     fund for which the Viaduct is eligible.
       (c) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that describes the findings of the study.

     SEC. 1925. COMMUNITY ENHANCEMENT STUDY.

       (a) In General.--The Secretary shall conduct a study on--
       (1) the role of well-designed transportation projects in--
       (A) promoting economic development;
       (B) protecting public health, safety and the environment; 
     and
       (C) enhancing the architectural design and planning of 
     communities; and
       (2) the positive economic, cultural, aesthetic, scenic, 
     architectural, and environmental benefits of such projects 
     for communities.
       (b) Contents.--The study shall address the following:
       (1) The degree to which well-designed transportation 
     projects have positive economic, cultural, aesthetic, scenic, 
     architectural, and environmental benefits for communities.
       (2) The degree to which such projects protect and 
     contribute to improvements in public health and safety.
       (3) The degree to which such projects use inclusive public 
     participation processes to achieve quicker, more certain, and 
     better results.
       (4) The degree to which positive results are achieved by 
     linking transportation, design, and the implementation of 
     community visions for the future.
       (5) Facilitating the use of successful models or best 
     practices in transportation investment or development to 
     accomplish each of the following:
       (A) Enhancement of community identity.
       (B) Protection of public health and safety.
       (C) Provision of a variety of choices in housing, shopping, 
     transportation, employment, and recreation.
       (D) Preservation and enhancement of existing 
     infrastructure.
       (E) Creation of a greater sense of community through public 
     involvement.
       (c) Report.--Not later than September 20, 2007, the 
     Secretary shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     report on the results of the study.
       (d) Administration.--To carry out this section, the 
     Secretary shall make a grant to, or enter into a cooperative 
     agreement or contract with, a national organization 
     representing architects who have expertise in the design of a 
     wide range of transportation and infrastructure projects, 
     which include the design of buildings, public facilities, and 
     surrounding communities.
       (e) Authorization.--Of the amounts made available to carry 
     out the transportation, community, and system preservation 
     program by section 1117 of this Act $1,000,000 shall be 
     available for each of fiscal years 2006 and 2007 to carry out 
     this section; except that, notwithstanding section 1117(g) of 
     this Act, the Federal share of the cost of the study shall be 
     100 percent.

     SEC. 1926. BUDGET JUSTIFICATION.

       The Department of Transportation and each agency in the 
     Department shall submit to the Committee on Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     budget justification concurrently with the President's annual 
     budget submission to Congress under section 1105(a) of title 
     31, United States Code.

     SEC. 1927. 14TH AMENDMENT HIGHWAY AND 3RD INFANTRY DIVISION 
                   HIGHWAY.

       Not later than December 31, 2005, any funds made available 
     to commission studies and reports regarding construction of a 
     route linking Augusta, Georgia, Macon, Georgia, Columbus, 
     Georgia, Montgomery, Alabama, and Natchez, Mississippi and a 
     route linking through Savannah, Georgia, Augusta, Georgia, 
     and Knoxville, Tennessee, shall be provided to the Secretary 
     to--
       (1) carry out a study and submit to the appropriate 
     committees of Congress a report that describes the steps and 
     estimated funding necessary to construct a route for the 14th 
     Amendment Highway, from Augusta, Georgia, to Natchez, 
     Mississippi (formerly designated the Fall Line Freeway in the 
     State of Georgia); and
       (2) carry out a study and submit to the appropriate 
     committees of Congress a report that describes the steps and 
     estimated funding necessary to designate and construct a 
     route for the 3rd Infantry Division Highway, extending from 
     Savannah, Georgia, to Knoxville, Tennessee, by way of 
     Augusta, Georgia (formerly the Savannah River Parkway in the 
     State of Georgia).

     SEC. 1928. SENSE OF CONGRESS REGARDING BUY AMERICA.

       It is the sense of Congress that--
       (1) the Buy America test required by section 165 of the 
     Surface Transportation Assistance Act of 1982 (23 U.S.C. 101 
     note) needs to be applied to an entire bridge project and not 
     only to component parts of such project;
       (2) the law clearly states that domestic materials must be 
     used in Federal highway projects unless there is a finding 
     that the inclusion of domestic materials will increase the 
     cost of the overall project by more than 25 percent;
       (3) uncertainty regarding how to apply Buy America laws for 
     major bridge projects threatens the domestic bridge industry;
       (4) because the Nation's unemployment rate continues to 
     hover around 5.6 percent, steps are needed to protect 
     American workers and the domestic bridge building industry; 
     and
       (5) the Buy American Act (41 U.S.C. 10a et seq.) was 
     designed to ensure that, when taxpayer money is spent on 
     direct Federal Government procurement and infrastructure 
     projects, these expenditures stimulate United States 
     production and job creation.

     SEC. 1929. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE 
                   HIGHWAY.

       (a) Designation.--The portion of Interstate Route 86 in the 
     State of New York, extending from the Pennsylvania border 
     near Lake Erie through Orange County, New York, shall be 
     known and designated as the ``Daniel Patrick Moynihan 
     Interstate Highway''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     highway portion referred to in subsection (a) shall be deemed 
     to be a reference to the ``Daniel Patrick Moynihan Interstate 
     Highway''.

     SEC. 1930. DESIGNATION OF THOMAS P. ``TIP'' O'NEILL, JR. 
                   TUNNEL.

       (a) Designation.--In honor of his service to the 
     Commonwealth of Massachusetts and the United States, and in 
     recognition of his contributions toward the construction of 
     the Central Artery project in Boston, the northbound and 
     southbound tunnel of Interstate Route 93, located in the city 
     of Boston, which extends north of the intersection of 
     Interstate Route 90 and Interstate Route 93 to the Leonard P.

[[Page H7287]]

     Zakim Bunker Hill Bridge, shall be known and designated as 
     the ``Thomas P. `Tip' O'Neill, Jr. Tunnel''.
       (b) References.--Any reference in law, map, regulation, 
     document, paper, or other record of the United States to the 
     tunnel referred to in subsection (a) shall be deemed to be a 
     reference to the ``Thomas P. `Tip' O'Neill, Jr. Tunnel''.

     SEC. 1931. RICHARD NIXON PARKWAY, CALIFORNIA.

       (a) Designation.--The segment of the Imperial Highway 
     located between California State Route 91 and Esperanza Road 
     in the State of California shall be known and designated as 
     the ``Richard Nixon Parkway''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     highway segment referred to in subsection (a) shall be deemed 
     to be a reference to the ``Richard Nixon Parkway''.

     SEC. 1932. AMO HOUGHTON BYPASS.

       (a) Designation.--The 3-mile segment of Interstate Route 86 
     between its interchange with New York State Route 15 in the 
     vicinity of Painted Post, New York, and its interchange with 
     New York State Route 352 in the vicinity of Corning, New 
     York, shall be known and designated as the ``Amo Houghton 
     Bypass''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     highway segment referred to in subsection (a) shall be deemed 
     to be a reference to the ``Amo Houghton Bypass''.

     SEC. 1933. BILLY TAUZIN ENERGY CORRIDOR.

       (a) Designation.--Louisiana Route 1 shall be known and 
     designated as the ``Billy Tauzin Energy Corridor''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     highway segment referred to in subsection (a) shall be deemed 
     to be a reference to the ``Billy Tauzin Energy Corridor''.

     SEC. 1934. TRANSPORTATION IMPROVEMENTS.

       (a) Authorization of Appropriations.--
       (1) In general.--For each of fiscal years 2005 through 
     2009, there are authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) such 
     sums as are necessary to make allocations in accordance with 
     paragraph (2) to carry out each project described in the 
     table contained in subsection (c), at the amount specified 
     for each such project in that table.
       (2) Allocation percentages.--Of the total amount specified 
     for each project described in the table contained in 
     subsection (c), 10 percent for fiscal year 2005, 20 percent 
     for fiscal year 2006, 25 percent for fiscal year 2007, 25 
     percent for fiscal year 2008, and 20 percent for fiscal year 
     2009 shall be allocated to carry out each such project in 
     that table.
       (b) Contract Authority.--
       (1) In general.--Funds authorized to be appropriated to 
     carry out this subsection shall be available for obligation 
     in the same manner as if the funds were apportioned under 
     chapter 1 of title 23, United States Code, except that the 
     funds shall remain available until expended.
       (2) Federal share.--The Federal share of the cost of a 
     project under this section shall be determined in accordance 
     with section 120 of such title.
       (c) Table.--The table referred to in subsections (a) and 
     (b) is as follows:

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     SEC. 1935. PROJECT FLEXIBILITY.

       (a) In General.--Notwithstanding any other provision of 
     law, funds allocated for a project described in subsection 
     (b) in a State may be obligated for any other project in the 
     State for which funds are so allocated, except that the total 
     amount of funds authorized for any project for which funds 
     are so allocated shall not be reduced.
       (b) Projects.--The projects described in this subsection 
     are--
       (1) the projects numbered greater than 3676 listed in the 
     table contained in section 1702 of this Act;
       (2) the projects numbered greater than 18 listed in the 
     table contained in section 1301 of this Act;
       (3) the projects numbered greater than 27 listed in the 
     table contained in section 1302 of this Act; and
       (4) the projects listed in the table contained in section 
     1934 of this Act.

     SEC. 1936. ADVANCES.

       Notwithstanding any other provision of law, funds 
     apportioned to a State under section 104(b) of title 23, 
     United States Code, may be obligated to carry out a project 
     designated in any of sections 1301, 1302, 1306, and 1934 of 
     this Act and sections 117 and 144(g) of title 23, United 
     States Code, in an amount not to exceed the amount authorized 
     for that project, only from a program under which the project 
     would be eligible, except that any amounts obligated to carry 
     out the project shall be restored from funds allocated for 
     the project.

     SEC. 1937. ROADS IN CLOSED BASINS.

       (a) In General.--The Secretary shall use funds made 
     available to carry out section 125 of title 23, United States 
     Code, through advancement or reimbursement, without further 
     emergency declaration, to construct such measures as the 
     Secretary determines to be necessary for the continuation of 
     roadway services, or the impoundment of water to protect 
     roads, or both, at Devils Lake in the State of North Dakota, 
     as the Secretary determines to be appropriate.
       (b) Requirements.--The Secretary shall carry out 
     construction under subsection (a) in accordance with--
       (1) the options and needs identified in the report of the 
     Devils Lake Surface Transportation Task Force of the Federal 
     Highway Administration dated May 4, 2000, and entitled 
     ``Roadways Serving as Water Barriers'';
       (2) any needs relating to Devils Lake identified after May 
     4, 2000; and
       (3) any monitoring, study, or design or preliminary 
     engineering associated with evaluating or constructing the 
     measures.
       (c) Affected Areas.--The Secretary shall carry out 
     construction under this section in an area that has been the 
     subject of an emergency declaration issued during the period 
     beginning on January 1, 1993, and ending on the date of 
     enactment of this Act.
       (d) Funding.--
       (1) In general.--Except as provided in paragraph (2), to 
     the extent that expenditures relating to construction under 
     this section could not be made pursuant to any other 
     authority under section 125 of title 23, United States Code, 
     the expenditures shall not exceed--
       (A) $10,000,000 during any fiscal year; and
       (B) a total amount of $70,000,000.
       (2) Exception.--Nothing in paragraph (1) limits any 
     expenditure with respect to--
       (A) emergency relief in response to a development occurring 
     after the date of enactment of this Act; or
       (B) an authority under any other provision of law 
     (including section 125 of such title).
       (e) Effect of Section.--Nothing in this section authorizes 
     or provides funding for the construction, operation, or 
     maintenance of an outlet at Devils Lake in the State of North 
     Dakota.

     SEC. 1938. TECHNOLOGY.

       States are encouraged to consider using a nondestructive 
     technology able to detect cracks including sub-surface flaws 
     as small as 0.005 inches in length or depth in steel bridges.

     SEC. 1939. BIA INDIAN ROAD PROGRAM.

       (a) Limitation on Applicability of Certain Rule.--The final 
     rule effective October 1, 2004, published in the Federal 
     Register, July 19, 2004, at pages 43089, relating to the 
     Indian reservation road program administered by the Bureau of 
     Indian Affairs of the Department of the Interior, shall not 
     apply to the following Alaska villages with respect to the 
     following projects:
       (1) Craig, Alaska, Craig Community Association, Point St. 
     Nicholas Road improvements.
       (2) Cordova, Alaska, Native Village of Eyak, Shepard's 
     Point Road improvements.
       (3) Hydaburg, Alaska, Hydaburg Community Association, 
     Hydaburg community street improvements.
       (4) Healy Lake, Alaska, Healy Lake Traditional, Cummings 
     Road improvements.
       (b) Special Rule.--For the villages listed in subsection 
     (a), the Indian reservation road program shall be 
     administered by the Bureau of Indian Affairs under the rules 
     and regulations in effect before the adoption of the final 
     rule referred to in subsection (a), and the Secretary shall 
     pay, from amounts made available to carry out section 202(d) 
     of title 23, United States Code, for fiscal year 2006 each of 
     the tribal organizations referred to in subsection (a) for 
     the Federal share of the costs of the projects listed in 
     subsection (a).

     SEC. 1940. GOING-TO-THE-SUN ROAD, GLACIER NATIONAL PARK, 
                   MONTANA.

       (a) Project Authorization.--There is authorized to be 
     appropriated to the Secretary from the Highway Trust Fund 
     (other than the Mass Transit Account) to resurface, repair, 
     rehabilitate, and reconstruct the Going-to-the-Sun Road at 
     Glacier National Park, Montana, in accordance with the 
     framework identified in Alternative 3 (shared use 
     alternative) of the environmental impact statement and record 
     of decision dated 2003 and relating to the Going-to-the-Sun 
     Road, to remain available until expended--
       (1) $10,000,000 for fiscal year 2005;
       (2) $10,000,000 for fiscal year 2006;
       (3) $10,000,000 for fiscal year 2007;
       (4) $10,000,000 for fiscal year 2008; and
       (5) $10,000,000 for fiscal year 2009.
       (b) Federal Share.--The Federal share of the costs of the 
     project described in subsection (a) shall be 100 percent.

     SEC. 1941. BEARTOOTH HIGHWAY, MONTANA.

       (a) Project Authorization.--Of funds made available for the 
     State of Montana for the project for development and 
     construction of United States Route 212, Red Lodge North, 
     Montana, as described in the table contained in section 1934 
     (including amounts transferred to the project under section 
     1935), on request of the State of Montana, the Secretary 
     shall obligate such sums as are necessary to reconstruct the 
     Beartooth Highway in the State of Montana.
       (b) Reimbursement.--The amounts used for reconstruction 
     under subsection (a) shall be reimbursed to the project 
     relating to United States Route 212 described in subsection 
     (a) on the date or dates on which funding is allocated for 
     the Beartooth Highway under section 125 of title 23, United 
     States Code.
       (c) Federal Share.--The Federal share payable for funds 
     allocated for the Beartooth Highway under section 125 of such 
     title shall be 100 percent.

     SEC. 1942. OPENING OF AIRFIELD AT MALMSTROM AIR FORCE BASE, 
                   MONTANA.

       Not later than 1 day after the date of the enactment of 
     this Act, the Secretary of the Air Force shall--
       (1) open the airfield at Malmstrom Air Force Base, Montana; 
     and
       (2) enable flying operations for all fixed-wing aircraft at 
     that base.

     SEC. 1943. GREAT LAKES ITS IMPLEMENTATION.

       (a) In General.--The Secretary shall make grants to the 
     State of Wisconsin to continue intelligent transportation 
     system activities in the corridor serving the Greater 
     Milwaukee, Wisconsin, Chicago, Illinois, and Gary, Indiana, 
     areas initiated under the Intermodal Surface Transportation 
     Efficiency Act of 1991 (Public Law 102-240) and other areas 
     of the State of Wisconsin.
       (b) Funding.--There is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $2,000,000 for each of fiscal years 2006 through 2008 and 
     $3,000,000 for fiscal year 2009 to carry out this section.
       (c) Contract Authority.--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.

     SEC. 1944. TRANSPORTATION CONSTRUCTION AND REMEDIATION, 
                   OTTAWA COUNTY, OKLAHOMA.

       (a) In General.--The Secretary shall allocate to the State 
     of Oklahoma amounts made available to carry out this section 
     for the activities described in subsection (b).
       (b) Oklahoma Plan for Tar Creek.--The activities referred 
     to in subsection (a) are all activities described in the 
     Oklahoma Plan for Tar Creek, including activities under that 
     Plan that are to be carried out by involved Federal and State 
     entities.
       (c) Funding.--
       (1) Authorization of appropriations.--
       (A) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $10,000,000 for fiscal 
     year 2006.
       (B) Availability.--Funds authorized to be appropriated 
     under subparagraph (A) shall remain available until expended.
       (2) Contract authority.--Except as otherwise provided in 
     this section, funds authorized to be appropriated under this 
     section shall be available for obligation in the same manner 
     as if the funds were apportioned under chapter 1 of title 23, 
     United States Code.
       (3) Title 23 eligibility.--Activities described in 
     subsection (b) shall be considered to be eligible for funding 
     under any program for which funds are apportioned under 
     section 104(b) of such title, as in effect on the day before 
     the date of enactment of this section.

     SEC. 1945. INFRASTRUCTURE AWARENESS PROGRAM.

       (a) In General.--In cooperation with the subcontracting 
     production entity that received funds under section 1212(b) 
     of the Transportation Equity Act for the 21st Century (112 
     Stat. 193), the Secretary shall fund the production of a 
     documentary about infrastructure that demonstrates 
     advancements in Alaska, the last frontier.
       (b) Federal Share.--The Federal share of the cost of 
     production of the documentary under subsection (a) shall be 
     100 percent.
       (c) Funding.--There is authorized to be appropriated out of 
     the Highway Trust fund (other than the Mass Transit Account) 
     to carry out this section $1,500,000 for fiscal year 2005 and 
     $1,450,000 for fiscal year 2006. Such fund shall remain 
     available until expended.
       (d) Applicability of Title 23.--Funds authorized by this 
     section shall be available for obligation in the same manner 
     as if such funds were apportioned under chapter 1 of title 
     23, United State Code; except that the Federal share of the 
     cost of production of the documentary under this section 
     shall be determined in accordance with this section.

     SEC. 1946. GATEWAY RURAL IMPROVEMENT PILOT PROGRAM.

       (a) In General.--The Secretary shall establish a pilot 
     program in the State of Vermont to be known as the ``Gateway 
     Rural Improvement Pilot Program'' (referred to in this 
     section as the ``program'') to demonstrate the benefits to a 
     rural rail corridor of a freight transportation gateway 
     program.

[[Page H7308]]

       (b) Eligible Activities.--Under the program--
       (1) funding preference shall be given to selecting a 
     corridor in the State of Vermont that includes a border 
     crossing; and
       (2) individual projects shall provide community and highway 
     benefits by addressing economic, congestion, security, 
     safety, and environmental issues.
       (c) Cost Sharing.--
       (1) Federal share.--The Federal share of the cost of a 
     project under this section shall be determined in accordance 
     with section 120 of title 23, United States Code.
       (2) Non-federal share.--Project user fees may be used to 
     provide all or part of the non-Federal share of the cost of a 
     project funded under this section.
       (d) Authorization of Appropriations.--In addition to such 
     amounts as are otherwise authorized to be appropriated for 
     the Department, there are authorized to be appropriated such 
     sums as may be necessary to carry out this section.

     SEC. 1947. ELIGIBLE SAFETY IMPROVEMENTS.

       Section 120(c) of title 23, United States Code, is amended 
     in the first sentence by inserting ``traffic circles (also 
     known as `roundabouts'),'' after ``traffic control 
     signalization,''.

     SEC. 1948. EMERGENCY SERVICE ROUTE.

       Notwithstanding any Federal law, regulation, or policy to 
     the contrary, no Federal funds shall be obligated or expended 
     for the demolition of the existing Brightman Street Bridge 
     connecting Fall River and Somerset, Massachusetts, and the 
     existing Brightman Street Bridge shall be maintained for 
     pedestrian and bicycle access, and as an emergency service 
     route.

     SEC. 1949. KNIK ARM BRIDGE FUNDING CLARIFICATION.

       The Secretary shall provide to the public entity known as 
     the Knik Arm Bridge and Toll Authority, established by the 
     State of Alaska, funds provided in items 2465 and 3677 in the 
     table contained in section 1702, item 2 in the table 
     contained in section 1934, and item 14 in the table contained 
     in section 1302.

     SEC. 1950. LINCOLN PARISH, LA/I-20 TRANSPORTATION CORRIDOR 
                   PROGRAM.

       (a) In General.--The Secretary shall credit non-Federal 
     expenditures paid on or after October 23, 2000, by project 
     sponsors of the Lincoln Parish transportation and community 
     and system preservation project funded by the Department of 
     Transportation and Related Agencies Appropriations Act, 2001 
     (Public Law 106-346), and the United States Route 167/I-20 
     interchange Interstate maintenance discretionary project 
     funded by the Department of Transportation and Related 
     Agencies Appropriations Act, 2002 (Public Law 107-87), that 
     are in excess of the non-Federal matching requirements for 
     such projects as non-Federal contributions toward the non-
     Federal matching requirements for all LA/I-20 Transportation 
     Corridor Program elements between Louisiana Route 149 and 
     Louisiana Route 33.
       (b) Expiration of Authority.--The authority to provide 
     credit under subsection (a) expires on September 30, 2009.

     SEC. 1951. BONDING ASSISTANCE PROGRAM.

       Section 332 of title 49, United States Code, is amended by 
     inserting at the end the following:
       ``(e) Bonding Assistance.--
       ``(1) In general.--The Secretary, acting through the 
     Minority Resource Center established under subsection (b), 
     shall provide assistance in obtaining bid, payment, and 
     performance bonds by disadvantaged business enterprises 
     pursuant to subsection (b)(4).
       ``(2) Authorization of appropriation.--There is authorized 
     to be appropriated such sums as may be necessary for each of 
     fiscal years 2005 through 2009 to carry out activities under 
     this subsection.''.

     SEC. 1952. CONGESTION RELIEF.

       The Secretary shall conduct a design and feasibility 
     analysis to alleviate southbound traffic congestion along the 
     George Washington Parkway, Virginia, between Interstate Route 
     495 and the 14th Street Bridge and shall take appropriate 
     action in response to the results of that analysis.

     SEC. 1953. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out, in 
     accordance with title 23, United States Code, projects under 
     section 1301 and 1302 of this Act.

     SEC. 1954. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

       Section 217(c) of title 23, United States Code, is amended 
     by striking ``in conjunction with such trails, roads, 
     highways, and parkways''.

     SEC. 1955. CONVEYANCE TO THE CITY OF ELY, NEVADA.

       Notwithstanding sections 202 and 203 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1711, 1712), the 
     Secretary of Interior, acting through the Director of the 
     Bureau of Land Management, shall convey within 45 days after 
     the date of enactment of this Act to the city of Ely, Nevada, 
     subject to valid existing rights, without consideration, all 
     right, title, and interest of the United States in the land 
     located within the railroad corridor described in rights-of-
     way numbered Nev-043230, Nev-043231, Nev-043232, Nev-43240, 
     Nev-043234, ELKO-03009, ELKO-03514, and CC-05887.

     SEC. 1956. BROWNFIELDS GRANTS.

       Section 104(k)(4)(B) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9604(k)(4)(B)) is amended by adding at the end the following:
       ``(iii) Exception.--Notwithstanding clause (i)(IV), the 
     Administrator may use up to 25 percent of the funds made 
     available to carry out this subsection to make a grant or 
     loan under this subsection to eligible entities that satisfy 
     all of the elements set forth in section 101(40) to qualify 
     as a bona fide prospective purchaser, except that the date of 
     acquisition of the property was on or before January 11, 
     2002.''.

     SEC. 1957. TRAFFIC CIRCLE CONSTRUCTION, CLARENDON, VERMONT.

       (a) In General.--The State of Vermont agency of 
     transportation shall--
       (1) not later than August 1, 2005, commence planning for a 
     traffic circle at the intersection of United States Route 7 
     and Vermont Route 103 in Clarendon, Vermont; and
       (2) not later than August 1, 2007, complete construction of 
     that traffic circle.
       (b) Funding.--From amounts made available to the State of 
     Vermont by this Act, the Secretary shall provide to the State 
     of Vermont agency of transportation $1,000,000 for use in 
     carrying out this section.

     SEC. 1958. LIMITATION ON PROJECT APPROVAL.

       Notwithstanding any provision of title 23, United States 
     Code, the Secretary is prohibited from approving any Federal-
     aid highway project in Orange and Seminole Counties, Florida, 
     which provides access from Interstate Route 4 to the right-
     of-way or median of Interstate Route 4 if tolls or toll 
     facilities are used for the access to the right-of-way or 
     median.

     SEC. 1959. CROSS HARBOR FREIGHT MOVEMENT PROJECT.

       The Secretary shall provide to the public entity known as 
     the Port Authority of New York and New Jersey, established by 
     the States of New York and New Jersey, funds provided for 
     project numbered 12 in section 1301 of this Act.

     SEC. 1960. DENALI ACCESS SYSTEM PROGRAM.

       The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is 
     amended--
       (1) by redesignating section 309 as section 310; and
       (2) by inserting after section 308 the following:

     ``SEC. 309. DENALI ACCESS SYSTEM PROGRAM.

       ``(a) Establishment of the Denali Access System Program.--
     Not later than 3 months after the date of enactment of the 
     SAFETEA-LU, the Secretary of Transportation shall establish a 
     program to pay the costs of planning, designing, engineering, 
     and constructing road and other surface transportation 
     infrastructure identified for the Denali access system 
     program under this section.
       ``(b) Denali Access System Program Advisory Committee.--
       ``(1) Establishment.--Not later than 3 months after the 
     date of enactment of the SAFETEA-LU, the Denali Commission 
     shall establish a Denali Access System Program Advisory 
     Committee (referred to in this section as the `advisory 
     committee') .
       ``(2) Membership.--The advisory committee shall be composed 
     of 9 members to be appointed by the Governor of the State of 
     Alaska as follows:
       ``(A) The chairman of the Denali Commission.
       ``(B) 4 members who represent existing regional native 
     corporations, native nonprofit entities, or tribal 
     governments, including one member who is a civil engineer.
       ``(C) 4 members who represent rural Alaska regions or 
     villages, including one member who is a civil engineer.
       ``(3) Terms.--
       ``(A) In general.--Except for the chairman of the 
     Commission who shall remain a member of the advisory 
     committee, members shall be appointed to serve a term of 4 
     years.
       ``(B) Initial members.--Except for the chairman of the 
     Commission, of the 8 initial members appointed to the 
     advisory committee, 2 shall be appointed for a term of 1 
     year, 2 shall be appointed for a term of 2 years, 2 shall be 
     appointed for a term of 3 years, and 2 shall be appointed for 
     a term of 4 years. All subsequent appointments shall be for 4 
     years.
       ``(4) Responsibilities.--The advisory committee shall be 
     responsible for the following activities:
       ``(A) Advising the Commission on the surface transportation 
     needs of Alaska Native villages and rural communities, 
     including projects for the construction of essential access 
     routes within remote Alaska Native villages and rural 
     communities and for the construction of roads and facilities 
     necessary to connect isolated rural communities to a road 
     system.
       ``(B) Advising the Commission on considerations for 
     coordinated transportation planning among the Alaska Native 
     villages, Alaska rural villages, the State of Alaska, and 
     other government entities.
       ``(C) Establishing a list of transportation priorities for 
     Alaska Native village and rural community transportation 
     projects on an annual basis, including funding 
     recommendations.
       ``(D) Facilitate the Commission's work on transportation 
     projects involving more than one region.
       ``(5) FACA exemption.--The provisions of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     advisory committee.
       ``(c) Allocation of Funds.--
       ``(1) In general.--The Secretary shall allocate funding 
     authorized and made available for the Denali access system 
     program to the Commission to carry out this section.
       ``(2) Distribution of funding.--In distributing funds for 
     surface transportation projects funded under the program, the 
     Commission shall consult the list of transportation 
     priorities developed by the advisory committee.
       ``(d) Preference to Alaska Materials and Products.--To 
     construct a project under this section, the Commission shall 
     encourage, to the maximum extent practicable, the use of 
     employees and businesses that are residents of Alaska.
       ``(e) Design Standards.--Each project carried out under 
     this section shall use technology and design standards 
     determined by the Commission to be appropriate given the 
     location and the functionality of the project.
       ``(f) Maintenance.--Funding for a construction project 
     under this section may include an additional amount equal to 
     not more than 10 percent of the total cost of construction, 
     to be

[[Page H7309]]

     retained for future maintenance of the project. All such 
     retained funds shall be dedicated for maintenance of the 
     project and may not be used for other purposes.
       ``(g) Lead Agency Designation.--For purposes of projects 
     carried out under this section, the Commission shall be 
     designated as the lead agency for purposes of accepting 
     Federal funds and for purposes of carrying out this project.
       ``(h) Non-Federal Share.--Notwithstanding any other 
     provision of law, funds made available to carry out this 
     section may be used to meet the non-Federal share of the 
     cost of projects under title 23, United States Code.
       ``(i) Surface Transportation Program Transferability.--
       ``(1) Transferability.--In any fiscal year, up to 15 
     percent of the amounts made available to the State of Alaska 
     for surface transportation by section 133 of title 23, United 
     States Code, may be transferred to the Denali access system 
     program.
       ``(2) No effect on set-aside.--Paragraph (2) of section 
     133(d), United States Code, shall not apply to funds 
     transferred under paragraph (1).
       ``(j) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     out of the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $15,000,000 for each of 
     fiscal years 2006 through 2009.
       ``(2) Applicability of title 23.--Funds made available to 
     carry out this section shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; except that such 
     funds shall not be transferable and shall remain available 
     until expended, and the Federal share of the cost of any 
     project carried out using such funds shall be determined in 
     accordance with section 120(b).''.

     SEC. 1961. I-95/CONTEE ROAD INTERCHANGE STUDY.

       (a) In General.--The Secretary shall conduct a study on the 
     I-95/Contee Road relocated interchange project located in 
     Prince George's County, Maryland. The study shall assess how 
     the proposed interchange will--
       (1) leverage Federal investment in the I-95/Contee Road 
     relocated interchange project by encouraging a public-private 
     partnership between the State of Maryland and the private 
     financial interests supporting the project;
       (2) improve overall transportation efficiency in the area 
     and enhance fire, rescue, and emergency response in the area;
       (3) complement planned development in the area by providing 
     sufficient access to the Interstate System; and
       (4) otherwise provide public benefits and revenues.
       (b) Data Collection.--As part of the study, the Secretary 
     shall collect data regarding the economic impact of the 
     project, including new jobs and State and county revenues in 
     the form of real estate property taxes, retail sales taxes, 
     and income and hotel sales and occupancy taxes.
       (c) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Environment and 
     Public Works of the Senate a report on the results of the 
     study, including any recommendations of the Secretary.
       (d) Funding.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section, out of the 
     Highway Trust Fund (other than the Mass Transit Account), 
     $1,000,000 for fiscal year 2006.
       (2) Contract authority.--Funds authorized to be 
     appropriated by this section shall be available for 
     obligation in the same manner and to the same extent as if 
     such funds were apportioned under chapter 1 of title 23, 
     United States Code; except that the Federal share of the cost 
     of the project shall be 100 percent, and such funds shall 
     remain available until expended and shall not be 
     transferable.

     SEC. 1962. MULTIMODAL FACILITY IMPROVEMENTS.

       (a) Authorization of Appropriations.--The Secretary shall 
     make available from funds in the Highway Trust Fund (other 
     than the Mass Transit Account) $5,000,000 for each of fiscal 
     years 2006 through 2009 for multimodal facility improvements, 
     construction, and ferry acquisition by North Bay Ferry 
     Service, Inc., located at Port Sonoma in Petaluma, 
     California.
       (b) Contract Authority.--Funds appropriated 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, except that such funds shall 
     remain available until expended.
       (c) Limitation.--Not more than 50 percent of funds 
     appropriated to carry out this section shall be used for 
     facility improvements and construction.
       (d) Federal Share.--The Federal Share of the cost of a 
     facility improvement or construction project under this 
     section shall be 80 percent.
       (e) Requirement.--Ferries to which assistance is provided 
     under this section shall be purchased by a United States 
     company that designs and builds vessels in the United States.

     SEC. 1963. APOLLO THEATER LEASES.

       Notwithstanding the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 et seq.), or any other provision 
     of law, the Economic Development Administration shall, in 
     order to facilitate the further financing of the project, 
     approve, without compensation to the agency, a series of 
     leases of the Apollo Theater, located in Harlem, New York, to 
     be improved by Economic Development Administration project 
     numbers 01-01-7308 and 01-01-07552.

     SEC. 1964. PROJECT FEDERAL SHARE.

       (a) In General.--Notwithstanding any other provision of 
     law, only for the States of Alaska, Montana, Nevada, North 
     Dakota, Oregon, and South Dakota, the Federal share of the 
     cost of a project described in subsection (b) shall be 
     determined in accordance with section 120(b) of title 23, 
     United States Code.
       (b) Projects.--The projects described in this subsection 
     are--
       (1) the projects listed in section 1702;
       (2) the projects listed in section 1301; and
       (3) the projects listed in section 1934.

                        TITLE II--HIGHWAY SAFETY

     SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Highway safety programs.--For carrying out section 402 
     of title 23, United States Code, $163,680,000 for fiscal year 
     2005, $217,000,000 for fiscal year 2006, $220,000,000 for 
     fiscal year 2007, $225,000,000 for fiscal year 2008, and 
     $235,000,000 for fiscal year 2009.
       (2) Highway safety research and development.--For carrying 
     out section 403 of title 23, United States Code, $71,424,000 
     for fiscal year 2005, $110,000,000 for fiscal year 2006, 
     $107,750,000 for fiscal year 2007, $107,750,000 for fiscal 
     year 2008, and $105,500,000 for fiscal year 2009.
       (3) Occupant protection incentive grants.--For carrying out 
     section 405 of title 23, United States Code, $19,840,000 for 
     fiscal year 2005, $25,000,000 for fiscal year 2006, 
     $25,000,000 for fiscal year 2007, $25,000,000 for fiscal year 
     2008, and $25,000,000 for fiscal year 2009.
       (4) Safety belt performance grants.--For carrying out 
     section 406 of title 23, United States Code, $124,500,000 for 
     fiscal year 2006, $124,500,000 for fiscal year 2007, 
     $124,500,000 for fiscal year 2008, and $124,500,000 for 
     fiscal year 2009.
       (5) State traffic safety information system improvements.--
     For carrying out section 408 of title 23, United States Code, 
     $34,500,000 for fiscal year 2006, $34,500,000 for fiscal year 
     2007, $34,500,000 for fiscal year 2008, and $34,500,000 for 
     fiscal year 2009.
       (6) Alcohol-impaired driving countermeasures incentive 
     grant program.--For carrying out section 410 of title 23, 
     United States Code, $39,680,000 for fiscal year 2005, 
     $120,000,000 for fiscal year 2006, $125,000,000 for fiscal 
     year 2007, $131,000,000 for fiscal year 2008, and 
     $139,000,000 for fiscal year 2009.
       (7) National driver register.--For the National Highway 
     Traffic Safety Administration to carry out chapter 303 of 
     title 49, United States Code, $3,968,000 for fiscal year 
     2005, $4,000,000 for fiscal year 2006, $4,000,000 for fiscal 
     year 2007, $4,000,000 for fiscal year 2008, and $4,000,000 
     for fiscal year 2009.
       (8) High visibility enforcement program.--For carrying out 
     section 2009 of this title $29,000,000 for fiscal year 2006, 
     $29,000,000 for fiscal year 2007, $29,000,000 for fiscal year 
     2008, and $29,000,000 for fiscal year 2009.
       (9) Motorcyclist safety.--For carrying out section 2010 of 
     this title $6,000,000 for fiscal year 2006, $6,000,000 for 
     fiscal year 2007, $6,000,000 for fiscal year 2008, and 
     $7,000,000 for fiscal year 2009.
       (10) Child safety and child booster seat safety incentive 
     grants.--For carrying out section 2011 of this title 
     $6,000,000 for fiscal year 2006, $6,000,000 for fiscal year 
     2007, $6,000,000 for fiscal year 2008, and $7,000,000 for 
     fiscal year 2009.
       (11) Administrative expenses.--For administrative and 
     related operating expenses of the National Highway Traffic 
     Safety Administration in carrying out chapter 4 of title 23, 
     United States Code, and this title $17,500,000 for fiscal 
     year 2006, $17,750,000 for fiscal year 2007, $18,250,000 for 
     fiscal year 2008, and $18,500,000 for fiscal year 2009.
       (b) Prohibition on Other Uses.--Except as otherwise 
     provided in chapter 4 of title 23, United States Code, and 
     this title, (including the amendments made by this title), 
     the amounts made available from the Highway Trust Fund (other 
     than the Mass Transit Account) for a program under such 
     chapter shall only be used to carry out such program and may 
     not be used by States or local governments for construction 
     purposes.
       (c) Applicability of Title 23.--Except as otherwise 
     provided in chapter 4 of title 23, United States Code, and 
     this title, amounts made available under subsection (a) for 
     each of fiscal years 2005 through 2009 shall be available for 
     obligation in the same manner as if such funds were 
     apportioned under chapter 1 of title 23, United States Code.
       (d) Transfers.--In each fiscal year, the Secretary may 
     transfer any amounts remaining available under paragraph (3), 
     (5), or (6) of subsection (a) to the amounts made available 
     under any other of such paragraphs in order to ensure, to the 
     maximum extent possible, that each State receives the maximum 
     incentive funding for which the State is eligible under 
     sections 405, 408, and 410 of title 23, United States Code.
       (e) Clarifications.--The amounts made available by each of 
     subsections (a)(1) through (a)(7) shall be less any amounts 
     made available from the Highway Trust Fund (other than the 
     Mass Transit Account) by laws enacted before the date of 
     enactment of this Act for the respective programs referred to 
     in each of such subsections for fiscal year 2005. Amounts 
     authorized by such subsections are post-rescission and shall 
     not be subject to any rescission after the date of enactment 
     of this Act.

     SEC. 2002. HIGHWAY SAFETY PROGRAMS.

       (a) Programs to Be Included.--Section 402(a) of title 23, 
     United States Code, is amended--

[[Page H7310]]

       (1) in clause (2) by striking ``and to increase public 
     awareness of the benefit of motor vehicles equipped with 
     airbags'';
       (2) by redesignating clause (6) as clause (7);
       (3) by inserting after clause (5) the following: ``(6) to 
     reduce accidents resulting from unsafe driving behavior 
     (including aggressive or fatigued driving and distracted 
     driving arising from the use of electronic devices in 
     vehicles)''; and
       (4) in the 10th sentence by inserting ``aggressive driving, 
     fatigued driving, distracted driving,'' after ``school bus 
     accidents,''
       (b) Administration of State Programs.--Section 402(b)(1) of 
     such title is amended--
       (1) in subparagraph (C) by striking ``and'' at the end;
       (2) by redesignating clause (6) as clause (7);
       (3) in subparagraph (D) by striking ``State.'' and 
     inserting ``State; and''; and
       (4) by adding at the end the following:
       ``(E) provide satisfactory assurances that the State will 
     implement activities in support of national highway safety 
     goals to reduce motor vehicle related fatalities that also 
     reflect the primary data-related crash factors within a State 
     as identified by the State highway safety planning process, 
     including--
       ``(i) national law enforcement mobilizations;
       ``(ii) sustained enforcement of statutes addressing 
     impaired driving, occupant protection, and driving in excess 
     of posted speed limits;
       ``(iii) an annual statewide safety belt use survey in 
     accordance with criteria established by the Secretary for the 
     measurement of State safety belt use rates to ensure that the 
     measurements are accurate and representative; and
       ``(iv) development of statewide data systems to provide 
     timely and effective data analysis to support allocation of 
     highway safety resources.''.
       (c) Deduction Deletion.--Section 402(c) of such title is 
     amended--
       (1) by striking the second sentence; and
       (2) in the sixth sentence by striking ``three-fourths of 1 
     percent'' and inserting ``2 percent''.
       (d) Law Enforcement and Consolidation of Applications.--
     Section 402 of such title is further amended by adding at the 
     end the following:
       ``(l) Law Enforcement Vehicular Pursuit Training.--A State 
     shall actively encourage all relevant law enforcement 
     agencies in such State to follow the guidelines established 
     for vehicular pursuits issued by the International 
     Association of Chiefs of Police that are in effect on the 
     date of enactment of this subsection or as revised and in 
     effect after such date as determined by the Secretary.
       ``(m) Consolidation of Grant Applications.--The Secretary 
     shall establish an approval process by which a State may 
     apply for all grants under this chapter through a single 
     application process with one annual deadline. The Bureau of 
     Indian Affairs shall establish a similar simplified process 
     for applications for grants from Indian tribes under this 
     chapter.''.
       (e) Conforming Repeal for Administrative Expenses.--Section 
     405(d) of such title is repealed.

     SEC. 2003. HIGHWAY SAFETY RESEARCH AND OUTREACH PROGRAMS.

       (a) Revised Authority and Requirements.--Section 403(a) of 
     title 23, United States Code, is amended to read as follows:
       ``(a) Authority of the Secretary.--The Secretary is 
     authorized to use funds appropriated to carry out this 
     section to--
       ``(1) conduct research on all phases of highway safety and 
     traffic conditions, including accident causation, highway or 
     driver characteristics, communications, and emergency care;
       ``(2) conduct ongoing research into driver behavior and its 
     effect on traffic safety;
       ``(3) conduct research on, launch initiatives to counter, 
     and conduct demonstration projects on fatigued driving by 
     drivers of motor vehicles and distracted driving in such 
     vehicles, including the effect that the use of electronic 
     devices and other factors deemed relevant by the Secretary 
     have on driving;
       ``(4) conduct training or education programs in cooperation 
     with other Federal departments and agencies, States, private 
     sector persons, highway safety personnel, and law enforcement 
     personnel;
       ``(5) conduct research on, and evaluate the effectiveness 
     of, traffic safety countermeasures, including seat belts and 
     impaired driving initiatives;
       ``(6) conduct research on, evaluate, and develop best 
     practices related to driver education programs (including 
     driver education curricula, instructor training and 
     certification, program administration and delivery 
     mechanisms) and make recommendations for harmonizing driver 
     education and multistage graduated licensing systems;
       ``(7) conduct research, training, and education programs 
     related to older drivers;
       ``(8) conduct demonstration projects; and
       ``(9) conduct research, training, and programs relating to 
     motorcycle safety, including impaired driving.''
       (b) International Cooperation.--Section 403 of such title 
     is amended by adding at the end the following:
       ``(g) International Cooperation.--The Administrator of the 
     National Highway Traffic Safety Administration may 
     participate and cooperate in international activities to 
     enhance highway safety.''.
       (c) On-Scene Motor Vehicle Collision Causation.--
       (1) Study.--The Secretary shall conduct under section 403 
     of title 23, United States Code, a nationally representative 
     study to collect on-scene motor vehicle collision data and to 
     determine crash causation. The Secretary shall enter into a 
     contract with the National Academy of Sciences to conduct a 
     review of the research, design, methodology, and 
     implementation of the study.
       (2) Consultation.--The study under this subsection may be 
     conducted in consultation with other Federal departments and 
     agencies with relevant expertise.
       (3) Final report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit a report on 
     the results of the study conducted under this subsection to 
     the Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives.
       (d) Research on Distracted, Inattentive, and Fatigued 
     Drivers.--In conducting research under section 403(a)(3) of 
     title 23, United States Code, the Secretary shall carry out 
     not less than 2 demonstration projects to evaluate new and 
     innovative means of combating traffic system problems caused 
     by distracted, inattentive, or fatigued drivers. The 
     demonstration projects shall be in addition to any other 
     research carried out under such section.
       (e) Pedestrian Safety.--
       (1) In general.--The Secretary shall--
       (A) produce a comprehensive report on pedestrian safety 
     that builds on the current level of knowledge of pedestrian 
     safety countermeasures by identifying the most effective 
     advanced technology and intelligent transportation systems, 
     such as automated pedestrian detection and warning systems 
     (infrastructure-based and vehicle-based), road design, and 
     vehicle structural design that could potentially mitigate the 
     crash forces on pedestrians in the event of a crash; and
       (B) include in the report recommendations on how new 
     technological developments could be incorporated into 
     educational and enforcement efforts and how they could be 
     integrated into national design guidelines developed by the 
     American Association of State Highway and Transportation 
     Officials.
       (2) Due date.--The Secretary shall complete the report 
     under this subsection not less than 2 years after the date of 
     enactment of this Act and submit a copy of the report to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives.
       (f)  Refusal of Intoxication Testing.--
       (1) Study.--The Secretary shall carry out under section 403 
     of title 23, United States Code, a study of the frequency 
     with which persons arrested for the offense of operating a 
     motor vehicle while under the influence of alcohol and 
     persons arrested for the offense of operating a motor vehicle 
     while intoxicated refuse to take a test to determine blood 
     alcohol concentration levels and the effect such refusals 
     have on the ability of States to prosecute such persons for 
     those offenses.
       (2) Consultation.--In carrying out the study under this 
     subsection, the Secretary shall consult with the Governors of 
     the States, the States' Attorneys General, and the United 
     States Sentencing Commission.
       (3) Report.--
       (A) Requirement for report.--Not later than 2 years after 
     the date of the enactment of this Act, the Secretary shall 
     submit a report on the results of the study to the Committee 
     on Commerce, Science, and Transportation of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives.
       (B) Content.--The report shall include any recommendation 
     for legislation, including any recommended model State 
     legislation, and any other recommendations that the Secretary 
     considers appropriate for implementing a program designed to 
     decrease the occurrence of refusals by arrested persons to 
     submit to a test to determine blood alcohol concentration 
     levels.
       (g) Impaired Motorcycle Driving.--
       (1) Studying.--In conducting research under section 
     403(a)(9) of title 23, United States Code, the Secretary 
     shall conduct a study on educational, public information and 
     other activities targeted at reducing motorcycle accidents 
     and resulting fatalities and injuries, where the operator of 
     the motorcycle is impaired.
       (2) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science, 
     and Transportation of the Senate a report on the results of 
     the study, including the data collected and statistics 
     compiled and recommendations to reduce the number of 
     motorcycle accidents described in paragraph (1) and the 
     resulting fatalities and injuries.
       (h) Reducing Impaired Driving Recidivism.--
       (1) Study.--The Secretary shall conduct a study on reducing 
     the incidence of alcohol-related motor vehicle crashes and 
     fatalities through research of advanced vehicle-based alcohol 
     detection systems, including an assessment of the 
     practicability and cost effectiveness of such systems.
       (2) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science, 
     and Transportation of the Senate a report on the results of 
     the study.

     SEC. 2004. OCCUPANT PROTECTION INCENTIVE GRANTS.

       (a) General Authority.--Section 405(a) of title 23, United 
     States Code, is amended-
       (1) in paragraph (2) by striking ``Transportation Equity 
     Act for the 21st Century'' and inserting ``SAFETEA-LU'';
       (2) in paragraph (3) by striking ``1997'' and inserting 
     ``2003''; and
       (3) in each of paragraphs (4)(A), (4)(B), and (4)(C) by 
     inserting after ``years'' the following: ``beginning after 
     September 30, 2003,''.
       (c) Grant Amounts.--Section 405(c) of such title is 
     amended-

[[Page H7311]]

       (1) by striking ``25 percent'' and inserting ``100 
     percent''; and
       (2) by striking ``1997'' and inserting ``2003''.

     SEC. 2005. GRANTS FOR PRIMARY SAFETY BELT USE LAWS.

       (a) In General.--Section 406 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 406. Safety belt performance grants

       ``(a) In General.--The Secretary shall make grants to 
     States in accordance with the provisions of this section to 
     encourage the enactment and enforcement of laws requiring the 
     use of safety belts in passenger motor vehicles.
       ``(b) Grants for Enacting Primary Safety Belt Use Laws.--
       ``(1) In general.--The Secretary shall make a single grant 
     to each State that either--
       ``(A) enacts for the first time after December 31, 2002, 
     and has in effect and is enforcing a conforming primary 
     safety belt use law for all passenger motor vehicles; or
       ``(B) in the case of a State that does not have such a 
     primary safety belt use law, has after December 31, 2005, a 
     State safety belt use rate of 85 percent or more for each of 
     the 2 calendar years immediately preceding the fiscal year of 
     a grant, as measured under criteria determined by the 
     Secretary.
       ``(2) Amount.--The amount of a grant available to a State 
     in fiscal year 2006 or in a subsequent fiscal year under 
     paragraph (1) shall equal 475 percent of the amount 
     apportioned to the State under section 402(c) for fiscal year 
     2003.
       ``(3) July 1 cut-off.--For the purpose of determining the 
     eligibility of a State for a grant under paragraph (1)(A), a 
     conforming primary safety belt use law enacted after June 
     30th of any year shall--
       ``(A) not be considered to have been enacted in the Federal 
     fiscal year in which that June 30th falls; but
       ``(B) be considered as if it were enacted after October 1 
     of the next Federal fiscal year.
       ``(4) Shortfall.--If the total amount of grants provided 
     for by this subsection for a fiscal year exceeds the amount 
     of funds available for such grants for that fiscal year, the 
     Secretary shall make grants under this subsection to States 
     in the order in which--
       ``(A) the conforming primary safety belt use law came into 
     effect; or
       ``(B) the State's safety belt use rate was 85 percent or 
     more for 2 consecutive calendar years (as measured under by 
     criteria determined by the Secretary), whichever first 
     occurs.
       ``(5) Catch-up grants.--The Secretary shall make a grant to 
     any State eligible for a grant under this subsection that did 
     not receive a grant for a fiscal year because of the 
     application of paragraph (4), in the next fiscal year if the 
     State's conforming primary safety belt use law remains in 
     effect or its safety belt use rate is 85 percent or more for 
     the 2 consecutive calendar years preceding such next fiscal 
     year (subject to the condition in paragraph (4)).
       ``(c) Grants for Pre-2003 Laws.--
       ``(1) In general.--To the extent that amounts made 
     available for grants under this section for any of fiscal 
     years 2006 through 2009 exceed the total amount of grants to 
     be awarded under subsection (b) for the fiscal year, 
     including amounts to be awarded for catch-up grants under 
     subsection (b)(5), the Secretary shall make a single grant to 
     each State that enacted, has in effect, and is enforcing a 
     conforming primary safety belt use law for all passenger 
     motor vehicles that was in effect before January 1, 2003.
       ``(2) Amount; installments.--The amount of a grant 
     available to a State under this subsection shall be equal to 
     200 percent of the amount of funds apportioned to the State 
     under section 402(c) for fiscal year 2003. The Secretary may 
     award the grant in annual installments.
       ``(d) Allocation of Unallocated Funds.--
       ``(1) Additional grants.--The Secretary shall make 
     additional grants under this section of any amounts made 
     available for grants under this section that, on July 1, 
     2009, have not been allocated to States under this section.
       ``(2) Allocation.--The additional grants made under this 
     subsection shall be allocated among all States that, as of 
     that date, have enacted, have in effect, and are enforcing 
     conforming primary safety belt laws for all passenger motor 
     vehicles. The allocations shall be made in accordance with 
     the formula for apportioning funds among the States under 
     section 402(c).
       ``(e) Use of Grant Funds.--
       ``(1) In general.--Subject to paragraph (2), a State may 
     use a grant under this section for any safety purpose under 
     this title or for any project that corrects or improves a 
     hazardous roadway location or feature or proactively 
     addresses highway safety problems, including--
       ``(A) intersection improvements;
       ``(B) pavement and shoulder widening;
       ``(C) installation of rumble strips and other warning 
     devices;
       ``(D) improving skid resistance;
       ``(E) improvements for pedestrian or bicyclist safety;
       ``(F) railway-highway crossing safety;
       ``(G) traffic calming;
       ``(H) the elimination of roadside obstacles;
       ``(I) improving highway signage and pavement marking;
       ``(J) installing priority control systems for emergency 
     vehicles at signalized intersections;
       ``(K) installing traffic control or warning devices at 
     locations with high accident potential;
       ``(L) safety-conscious planning; and
       ``(M) improving crash data collection and analysis.
       ``(2) Safety activity requirement.--Notwithstanding 
     paragraph (1), the Secretary shall ensure that at least 
     $1,000,000 of amounts received by States under this section 
     are obligated for safety activities under this chapter.
       ``(3) Support activity.--The Secretary or his designee may 
     engage in activities with States and State legislators to 
     consider proposals related to safety belt use laws.
       ``(f) Carry-Forward of Excess Funds.--If the amount 
     available for grants under this section for any fiscal year 
     exceeds the sum of the grants made under this section for 
     that fiscal year, the excess amount and obligational 
     authority shall be carried forward and made available for 
     grants under this section in the succeeding fiscal year.
       ``(g) Federal Share.--The Federal share payable for grants 
     under this section shall be 100 percent.
       ``(h) Passenger Motor Vehicle Defined.--In this section, 
     the term `passenger motor vehicle' means--
       ``(1) a passenger car;
       ``(2) a pickup truck; and
       ``(3) a van, minivan, or sport utility vehicle with a gross 
     vehicle weight rating of less than 10,000 pounds.''.
       (b) Clerical Amendment.--The analysis for chapter 4 of such 
     title is amended by striking the item relating to section 406 
     and inserting the following:

``406. Safety belt performance grants.''.

     SEC. 2006. STATE TRAFFIC SAFETY INFORMATION SYSTEM 
                   IMPROVEMENTS.

       (a) In General.--Section 408 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 408. State traffic safety information system 
       improvements

       ``(a) Grant Authority.--Subject to the requirements of this 
     section, the Secretary shall make grants to eligible States 
     to support the development and implementation of effective 
     programs by such States to--
       ``(1) improve the timeliness, accuracy, completeness, 
     uniformity, integration, and accessibility of the safety data 
     of the State that is needed to identify priorities for 
     national, State, and local highway and traffic safety 
     programs;
       ``(2) evaluate the effectiveness of efforts to make such 
     improvements;
       ``(3) link the State data systems, including traffic 
     records, with other data systems within the State, such as 
     systems that contain medical, roadway, and economic data; and
       ``(4) improve the compatibility and interoperability of the 
     data systems of the State with national data systems and data 
     systems of other States and enhance the ability of the 
     Secretary to observe and analyze national trends in crash 
     occurrences, rates, outcomes, and circumstances.
       ``(b) First-Year Grants.--To be eligible for a first-year 
     grant under this section in a fiscal year, a State shall 
     demonstrate to the satisfaction of the Secretary that the 
     State has--
       ``(1) established a highway safety data and traffic records 
     coordinating committee with a multidisciplinary membership 
     that includes, among others, managers, collectors, and users 
     of traffic records and public health and injury control data 
     systems; and
       ``(2) developed a multiyear highway safety data and traffic 
     records system strategic plan--
       ``(A) that addresses existing deficiencies in the State's 
     highway safety data and traffic records system;
       ``(B) that is approved by the highway safety data and 
     traffic records coordinating committee;
       ``(C) that specifies how existing deficiencies in the 
     State's highway safety data and traffic records system were 
     identified;
       ``(D) that prioritizes, on the basis of the identified 
     highway safety data and traffic records system deficiencies 
     of the State, the highway safety data and traffic records 
     system needs and goals of the State, including the activities 
     under subsection (a);
       ``(E) that identifies performance-based measures by which 
     progress toward those goals will be determined; and
       ``(F) that specifies how the grant funds and any other 
     funds of the State are to be used to address needs and goals 
     identified in the multiyear plan.
       ``(c) Successive Year Grants.--A State shall be eligible 
     for a grant under this subsection in a fiscal year succeeding 
     the first fiscal year in which the State receives a grant 
     under subsection (b) if the State--
       ``(1) certifies to the Secretary that an assessment or 
     audit of the State's highway safety data and traffic records 
     system has been conducted or updated within the preceding 5 
     years;
       ``(2) certifies to the Secretary that its highway safety 
     data and traffic records coordinating committee continues to 
     operate and supports the multiyear plan;
       ``(3) specifies how the grant funds and any other funds of 
     the State are to be used to address needs and goals 
     identified in the multiyear plan;
       ``(4) demonstrates to the Secretary measurable progress 
     toward achieving the goals and objectives identified in the 
     multiyear plan; and
       ``(5) submits to the Secretary a current report on the 
     progress in implementing the multiyear plan.
       ``(d) Grant Amount.--Subject to subsection (e)(3), the 
     amount of a year grant made to a State for a fiscal year 
     under this section shall equal the higher of--
       ``(1) the amount determined by multiplying--
       ``(A) the amount appropriated to carry out this section for 
     such fiscal year, by
       ``(B) the ratio that the funds apportioned to the State 
     under section 402 for fiscal year 2003 bears to the funds 
     apportioned to all States under such section for fiscal year 
     2003; or
       ``(2)(A) $300,000 in the case of the first fiscal year a 
     grant is made to a State under this section after the date of 
     enactment of this subparagraph; or
       ``(B) $500,000 in the case of a succeeding fiscal year a 
     grant is made to the State under this section after such date 
     of enactment.

[[Page H7312]]

       ``(e) Additional Requirements and Limitations.--
       ``(1) Model data elements.--The Secretary, in consultation 
     with States and other appropriate parties, shall determine 
     the model data elements that are useful for the observation 
     and analysis of State and national trends in occurrences, 
     rates, outcomes, and circumstances of motor vehicle traffic 
     accidents. In order to be eligible for a grant under this 
     section, a State shall submit to the Secretary a 
     certification that the State has adopted and uses such model 
     data elements, or a certification that the State will use 
     grant funds provided under this section toward adopting and 
     using the maximum number of such model data elements as soon 
     as practicable.
       ``(2) Data on use of electronic devices.--The model data 
     elements required under paragraph (1) shall include data 
     elements, as determined appropriate by the Secretary, in 
     consultation with the States and appropriate elements of the 
     law enforcement community, on the impact on traffic safety of 
     the use of electronic devices while driving.
       ``(3) Maintenance of effort.--No grant may be made to a 
     State under this section in any fiscal year unless the State 
     enters into such agreements with the Secretary as the 
     Secretary may require to ensure that the State will maintain 
     its aggregate expenditures from all other sources for highway 
     safety data programs at or above the average level of such 
     expenditures maintained by such State in the 2 fiscal years 
     preceding the date of enactment of the SAFETEA-LU.
       ``(4) Federal share.--The Federal share of the cost of 
     adopting and implementing in a fiscal year a State program 
     described in subsection (a) may not exceed 80 percent.
       ``(5) Limitation on use of grant proceeds.--A State may use 
     the proceeds of a grant received under this section only to 
     implement the program described in subsection (a) for which 
     the grant is made.
       ``(f) Applicability of Chapter 1.--Section 402(d) of this 
     title shall apply in the administration of this section.''.
       (b) Clerical Amendment.--The analysis for chapter 4 of such 
     title is amended by striking the item relating to section 408 
     and inserting the following:

``408. State traffic safety information system improvements.''.

     SEC. 2007. ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES.

       (a) Maintenance of Effort.--Section 410(a)(2) of title 23, 
     United States Code, is amended--
       (1) by striking ``under this section'' and inserting 
     ``under this subsection''; and
       (2) by striking ``Transportation Equity Act for the 21st 
     Century'' and inserting ``SAFETEA-LU''.
       (b) Revised Grant Authority.--Section 410 of such title is 
     amended--
       (1) in subsection (a)--
       (A) by striking paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (3); and
       (C) in paragraph (3) (as so redesignated) by striking the 
     second comma following ``sixth'';
       (2) by redesignating subsections (e) and (f) as subsections 
     (h) and (i), respectively;
       (3) by striking subsections (b) through (d) and inserting 
     the following:
       ``(b) Eligibility Requirements.--To be eligible for a grant 
     under subsection (a), a State shall--
       ``(1) have an alcohol related fatality rate of 0.5 or less 
     per 100,000,000 vehicle miles traveled as of the date of the 
     grant, as determined by the Secretary using the most recent 
     Fatality Analysis Reporting System of the National Highway 
     Traffic Safety Administration; or
       ``(2)(A) for fiscal year 2006 by carrying out 3 of the 
     programs and activities under subsection (c);
       ``(B) for fiscal year 2007 by carrying out 4 of the 
     programs and activities under subsection (c); or
       ``(C) for fiscal years 2008 and 2009 by carrying out 5 of 
     the programs and activities under subsection (c).
       ``(c) State Programs and Activities.--The programs and 
     activities referred to in subsection (b) are the following:
       ``(1) Check point, saturation patrol program.--A State 
     program to conduct a series of high visibility, Statewide law 
     enforcement campaigns in which law enforcement personnel 
     monitor for impaired driving, either through the use of 
     sobriety check points or saturation patrols, on a 
     nondiscriminatory, lawful basis for the purpose of 
     determining whether the operators of the motor vehicles are 
     driving while under the influence of alcohol--
       ``(A) if the State organizes the campaigns in cooperation 
     with related periodic national campaigns organized by the 
     National Highway Traffic Safety Administration, except that 
     this subparagraph does not preclude a State from initiating 
     sustained high visibility, Statewide law enforcement 
     campaigns independently of the cooperative efforts; and
       ``(B) if, for each fiscal year, the State demonstrates to 
     the Secretary that the State and the political subdivisions 
     of the State that receive funds under this section have 
     increased, in the aggregate, the total number of impaired 
     driving law enforcement activities at high incident locations 
     (or any other similar activity approved by the Secretary) 
     initiated in such State during the preceding fiscal year by a 
     factor that the Secretary determines meaningful for the State 
     over the number of such activities initiated in such State 
     during the preceding fiscal year.
       ``(2) Prosecution and adjudication outreach program.--A 
     State prosecution and adjudication program under which--
       ``(A) the State works to reduce the use of diversion 
     programs by educating and informing prosecutors and judges 
     through various outreach methods about the benefits and 
     merits of prosecuting and adjudicating defendants who 
     repeatedly commit impaired driving offenses;
       ``(B) the courts in a majority of the judicial 
     jurisdictions of the State are monitored on the courts' 
     adjudication of cases of impaired driving offenses; or
       ``(C) annual statewide outreach is provided for judges and 
     prosecutors on innovative approaches to the prosecution and 
     adjudication of cases of impaired driving offenses that have 
     the potential for significantly improving the prosecution and 
     adjudication of such cases.
       ``(3) Testing of bac.--An effective system for increasing 
     from the previous year the rate of blood alcohol 
     concentration testing of motor vehicle drivers involved in 
     fatal accidents.
       ``(4) High risk drivers.--A law that establishes stronger 
     sanctions or additional penalties for individuals convicted 
     of operating a motor vehicle while under the influence of 
     alcohol whose blood alcohol concentration is 0.15 percent or 
     more than for individuals convicted of the same offense but 
     with a lower blood alcohol concentration. For purposes of 
     this paragraph, `additional penalties' includes--
       ``(A) a 1 year suspension of a driver's license, but with 
     the individual whose license is suspended becoming eligible 
     after 45 days of such suspension to obtain a provisional 
     driver's license that would permit the individual to drive--
       ``(i) only to and from the individual's place of employment 
     or school; and
       ``(ii) only in an automobile equipped with a certified 
     alcohol ignition interlock device; and
       ``(B) a mandatory assessment by a certified substance abuse 
     official of whether the individual has an alcohol abuse 
     problem with possible referral to counseling if the official 
     determines that such a referral is appropriate.
       ``(5) Programs for effective alcohol rehabilitation and dwi 
     courts.--A program for effective inpatient and outpatient 
     alcohol rehabilitation based on mandatory assessment and 
     appropriate treatment for repeat offenders or a program to 
     refer impaired driving cases to courts that specialize in 
     driving while impaired cases that emphasize the close 
     supervision of high-risk offenders.
       ``(6) Underage drinking program.--An effective strategy, as 
     determined by the Secretary, for preventing operators of 
     motor vehicles under age 21 from obtaining alcoholic 
     beverages and for preventing persons from making alcoholic 
     beverages available to individuals under age 21. Such a 
     strategy may include--
       ``(A) the issuance of tamper-resistant drivers' licenses to 
     individuals under age 21 that are easily distinguishable in 
     appearance from drivers' licenses issued to individuals age 
     21 or older; and
       ``(B) a program provided by a nonprofit organization for 
     training point of sale personnel concerning, at a minimum--
       ``(i) the clinical effects of alcohol;
       ``(ii) methods of preventing second party sales of alcohol;
       ``(iii) recognizing signs of intoxication;
       ``(iv) methods to prevent underage drinking; and
       ``(v) Federal, State, and local laws that are relevant to 
     such personnel; and
       ``(C) having a law in effect that creates a 0.02 percent 
     blood alcohol content limit for drivers under 21 years old.
       ``(7) Administrative license revocation.--An administrative 
     driver's license suspension or revocation system for 
     individuals who operate motor vehicles while under the 
     influence of alcohol that requires that--
       ``(A) in the case of an individual who, in any 5-year 
     period beginning after the date of enactment of the 
     Transportation Equity Act for the 21st Century, is determined 
     on the basis of a chemical test to have been operating a 
     motor vehicle while under the influence of alcohol or is 
     determined to have refused to submit to such a test as 
     proposed by a law enforcement officer, the State agency 
     responsible for administering drivers' licenses, upon receipt 
     of the report of the law enforcement officer--
       ``(i) suspend the driver's license of such individual for a 
     period of not less than 90 days if such individual is a first 
     offender in such 5-year period; except that under such 
     suspension an individual may operate a motor vehicle, after 
     the 15-day period beginning on the date of the suspension, to 
     and from employment, school, or an alcohol treatment program 
     if an ignition interlock device is installed on each of the 
     motor vehicles owned or operated, or both, by the individual; 
     and
       ``(ii) suspend the driver's license of such individual for 
     a period of not less than 1 year, or revoke such license, if 
     such individual is a repeat offender in such 5-year period; 
     except that such individual to operate a motor vehicle, after 
     the 45-day period beginning on the date of the suspension or 
     revocation, to and from employment, school, or an alcohol 
     treatment program if an ignition interlock device is 
     installed on each of the motor vehicles owned or operated, or 
     both, by the individual; and
       ``(B) the suspension and revocation referred to under 
     clause (i) take effect not later than 30 days after the date 
     on which the individual refused to submit to a chemical test 
     or received notice of having been determined to be driving 
     under the influence of alcohol, in accordance with the 
     procedures of the State.
       ``(8) Self sustaining impaired driving prevention 
     program.--A program under which a significant portion of the 
     fines or surcharges collected from individuals who are fined 
     for operating a motor vehicle while under the influence of 
     alcohol are returned to communities for comprehensive 
     programs for the prevention of impaired driving.
       ``(d) Uses of Grants.--Subject to subsection (g)(2), grants 
     made under this section may be

[[Page H7313]]

     used for all programs and activities described in subsection 
     (c), and to defray the following costs:
       ``(1) Labor costs, management costs, and equipment 
     procurement costs for the high visibility, Statewide law 
     enforcement campaigns under subsection (c)(1).
       ``(2) The costs of the training of law enforcement 
     personnel and the procurement of technology and equipment, 
     including video equipment and passive alcohol sensors, to 
     counter directly impaired operation of motor vehicles.
       ``(3) The costs of public awareness, advertising, and 
     educational campaigns that publicize use of sobriety check 
     points or increased law enforcement efforts to counter 
     impaired operation of motor vehicles.
       ``(4) The costs of public awareness, advertising, and 
     educational campaigns that target impaired operation of motor 
     vehicles by persons under 34 years of age.
       ``(5) The costs of the development and implementation of a 
     State impaired operator information system.
       ``(6) The costs of operating programs that result in 
     vehicle forfeiture or impoundment or license plate 
     impoundment.
       ``(e) Additional Authorities for Certain Authorized Uses.--
       ``(1) Combination of grant proceeds.--Grant funds used for 
     a campaign under subsection (d)(3) may be combined, or 
     expended in coordination, with proceeds of grants under 
     section 402.
       ``(2) Coordination of uses.--Grant funds used for a 
     campaign under paragraph (3) or (4) of subsection (d) may be 
     expended--
       ``(A) in coordination with employers, schools, entities in 
     the hospitality industry, and nonprofit traffic safety 
     groups; and
       ``(B) in coordination with sporting events and concerts and 
     other entertainment events.
       ``(f) Allocation.--Subject to subsection (g), funds made 
     available to carry out this section shall be allocated among 
     States that meet the eligibility criteria in subsection (b) 
     on the basis of the apportionment formula under section 
     402(c).
       ``(g) Grants to High Fatality Rate States.--
       ``(1) In general.--The Secretary shall make a separate 
     grant under this section to each state that--
       ``(A) is among the 10 States with the highest impaired 
     driving related fatalities as determined by the Secretary 
     using the most recent Fatality Analysis Reporting System of 
     the National Highway Traffic Safety Administration; and
       ``(B) prepares a plan for grant expenditures under this 
     subsection that is approved by the Administrator of the 
     National Highway Traffic Safety Administration.
       ``(2) Required uses.--At least one-half of the amounts 
     allocated to States under this subsection may only be used 
     for the program described in subsection (c)(1).
       ``(3) Allocation.--Funds made available under this 
     subsection shall be allocated among States described in 
     paragraph (1) on the basis of the apportionment formula under 
     section 402(c), except that no State shall be allocated more 
     than 30 percent of the funds made available to carry out this 
     subsection for a fiscal year.
       ``(4) Funding.--Not more than 15 percent per fiscal year of 
     amounts made available to carry out this section for a fiscal 
     year shall be made available by the Secretary for making 
     grants under this subsection.''; and
       (4) by adding at the end of subsection (i) (as redesignated 
     by paragraph (2)) the following:
       ``(4) Impaired operator.-- The term `impaired operator' 
     means a person who, while operating a motor vehicle
       ``(A) has a blood alcohol content of 0.08 percent or 
     higher; or
       ``(B) is under the influence of a controlled substance.
       ``(5) Impaired driving related fatality rate.--The term 
     `impaired driving related fatality rate' means the rate of 
     alcohol related fatalities, as calculated in accordance with 
     regulations which the Administrator of the National Highway 
     Traffic Safety Administration shall prescribe.''.
       (c) NHTSA to Issue Regulations.--Not later than 12 months 
     after the date of enactment of this Act, the National Highway 
     Traffic Safety Administration shall issue guidelines to the 
     States specifying the types and formats of data that States 
     should collect relating to drivers who are arrested or 
     convicted for violation of laws prohibiting the impaired 
     operation of motor vehicles.

     SEC. 2008. NHTSA ACCOUNTABILITY.

       (a) In General.--Chapter 4 of title 23, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 412. Agency accountability

       ``(a) Triennial State Management Reviews.--At least once 
     every 3 years the Secretary shall conduct a review of each 
     State highway safety program. The review shall include a 
     management evaluation of all grant programs funded under this 
     chapter. The Secretary shall provide review-based 
     recommendations on how each State could improve the 
     management and oversight of its grant activities and may 
     provide a management and oversight plan for such grant 
     programs.
       ``(b) Recommendations Before Submission.--In order to 
     provide guidance to State highway safety agencies on matters 
     that should be addressed in the goals and initiatives of the 
     State highway safety program before the program is submitted 
     for review, the Secretary shall provide data-based 
     recommendations to each State at least 90 days before the 
     date on which the program is to be submitted for approval.
       ``(c) State Program Review.--The Secretary shall--
       ``(1) conduct a program improvement review of a highway 
     safety program under this chapter of a State that does not 
     make substantial progress over a 3-year period in meeting its 
     priority program goals; and
       ``(2) provide technical assistance and safety program 
     requirements to be incorporated in the State highway safety 
     program for any goal not achieved.
       ``(d) Regional Harmonization.--The Secretary and the 
     Inspector General of the Department of Transportation shall 
     undertake an administrative review of the practices and 
     procedures of the management reviews and program reviews of 
     State highway safety programs under this chapter conducted by 
     the regional offices of the National Highway Traffic Safety 
     Administration and prepare a written report of best practices 
     and procedures for use by the regional offices in conducting 
     such reviews. The report shall be completed within 180 days 
     after the date of enactment of this section.
       ``(e) Best Practices Guidelines.--
       ``(1) Uniform guidelines.--The Secretary shall issue 
     uniform management review guidelines and program review 
     guidelines based on the report under subsection (d). Each 
     regional office shall use the guidelines in executing its 
     State administrative review duties under this section.
       ``(2) Publication.--The Secretary shall make publicly 
     available on the Web site (or successor electronic facility) 
     of the Administration the following documents upon their 
     completion:
       ``(A) The Secretary's management review guidelines and 
     program review guidelines.
       ``(B) All State highway safety programs submitted under 
     this chapter.
       ``(C) State annual accomplishment reports.
       ``(D) The Administration's Summary Report of findings from 
     Management Reviews and Improvement Plans.
       ``(3) Reports to state highway safety agencies.--The 
     Secretary may not make publicly available a program, report, 
     or review under paragraph (2) that is directed to a State 
     highway safety agency until after the date on which the 
     program, report, or review is submitted to that agency under 
     this chapter.
       ``(f) GAO Review.--
       ``(1) Analysis.--The Comptroller General shall analyze the 
     effectiveness of the Administration's oversight of traffic 
     safety grants under this chapter by determining the 
     usefulness of the Administration's advice to the States 
     regarding administration and State activities under this 
     chapter, the extent to which the States incorporate the 
     Administration's recommendations into their highway safety 
     programs, and the improvements that result in a State's 
     highway safety program that may be attributable to the 
     Administration's recommendations.
       ``(2) Report.--Not later than the September 30, 2008, the 
     Comptroller General shall submit a report on the results of 
     the analysis to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate..''.
       (b) Clerical Amendment.--The analysis for chapter 4 of such 
     title is amended by adding at the end the following:

``412. Agency accountability.''.

     SEC. 2009. HIGH VISIBILITY ENFORCEMENT PROGRAM.

       (a) In General.--The Administrator of the National Highway 
     Traffic Safety Administration shall establish and administer 
     a program under which at least 2 high-visibility traffic 
     safety law enforcement campaigns will be carried out for the 
     purposes specified in subsection (b) in each of years 2006 
     through 2009.
       (b) Purpose.--The purpose of each law enforcement campaign 
     under this section shall be to achieve either or both of the 
     following objectives:
       (1) Reduce alcohol-impaired or drug-impaired operation of 
     motor vehicles.
       (2) Increase use of seat belts by occupants of motor 
     vehicles.
       (c) Advertising.--The Administrator may use, or authorize 
     the use of, funds available to carry out this section to pay 
     for the development, production, and use of broadcast and 
     print media advertising in carrying out traffic safety law 
     enforcement campaigns under this section. Consideration shall 
     be given to advertising directed at non-English speaking 
     populations, including those who listen, read, or watch 
     nontraditional media.
       (d) Coordination With States.--The Administrator shall 
     coordinate with the States in carrying out the traffic safety 
     law enforcement campaigns under this section, including 
     advertising funded under subsection (c), with a view to--
       (1) relying on States to provide the law enforcement 
     resources for the campaigns out of funding available under 
     this section and sections 402, 405, 406, and 410 of title 23, 
     United States Code; and
       (2) providing out of National Highway Traffic Safety 
     Administration resources most of the means necessary for 
     national advertising and education efforts associated with 
     the law enforcement campaigns.
       (e) Use of Funds.--Funds made available to carry out this 
     section may only be used for activities described in 
     subsections (a), (c), and (f).
       (f) Annual Evaluation.--The Secretary shall conduct an 
     annual evaluation of the effectiveness of campaigns referred 
     to in subsection (a).
       (g) State Defined.--The term ``State'' has the meaning such 
     term has under section 401 of title 23, United States Code.

     SEC. 2010. MOTORCYCLIST SAFETY.

       (a) Authority to Make Grants.--Subject to the requirements 
     of this section, the Secretary shall make grants to States 
     that adopt and implement effective programs to reduce the 
     number of single- and multi-vehicle crashes involving 
     motorcyclists.
       (b) Maintenance of Effort.--No grant may be made to a State 
     under this section in a fiscal

[[Page H7314]]

     year unless the State enters into such agreements with the 
     Secretary as the Secretary may require to ensure that the 
     State will maintain its aggregate expenditures from all the 
     other sources for motorcyclist safety training programs and 
     motorcyclist awareness programs at or above the average level 
     of such expenditures in its 2 fiscal years preceding the date 
     of enactment of this Act.
       (c) Allocation.--The amount of a grant made to a State for 
     a fiscal year under this section may not be less than 
     $100,000 and may not exceed 25 percent of the amount 
     apportioned to the State for fiscal year 2003 under section 
     402 of title 23, United States Code.
       (d) Grant Eligibility.--
       (1) In general.--A State becomes eligible for a grant under 
     this section by adopting or demonstrating to the satisfaction 
     of the Secretary--
       (A) for the first fiscal year for which the State will 
     receive a grant under this section, at least 1 of the 6 
     criteria listed in paragraph (2); and
       (B) for the second, third, and fourth fiscal years for 
     which the State will receive a grant under this section, at 
     least 2 of the 6 criteria listed in paragraph (2).
       (2) Criteria.--The criteria for eligibility for a grant 
     under this section are the following:
       (A) Motorcycle rider training courses.--An effective 
     motorcycle rider training course that is offered throughout 
     the State, provides a formal program of instruction in 
     accident avoidance and other safety-oriented operational 
     skills to motorcyclists and that may include innovative 
     training opportunities to meet unique regional needs.
       (B) Motorcyclists awareness program.--An effective 
     statewide program to enhance motorist awareness of the 
     presence of motorcyclists on or near roadways and safe 
     driving practices that avoid injuries to motorcyclists.
       (C) Reduction of fatalities and crashes involving 
     motorcycles.--A reduction for the preceding calendar year in 
     the number of motorcycle fatalities and the rate of motor 
     vehicle crashes involving motorcycles in the State (expressed 
     as a function of 10,000 motorcycle registrations).
       (D) Impaired driving program.--Implementation of a 
     statewide program to reduce impaired driving, including 
     specific measures to reduce impaired motorcycle operation.
       (E) Reduction of fatalities and accidents involving 
     impaired motorcyclists.--A reduction for the preceding 
     calendar year in the number of fatalities and the rate of 
     reported crashes involving alcohol- or drug-impaired 
     motorcycle operators (expressed as a function of 10,000 
     motorcycle registrations).
       (F) Fees collected from motorcyclists.--All fees collected 
     by the State from motorcyclists for the purposes of funding 
     motorcycle training and safety programs will be used for 
     motorcycle training and safety programs.
       (e) Eligible Uses.--
       (1) In general.--A State may use funds from a grant under 
     this section only for motorcyclist safety training and 
     motorcyclist awareness programs, including--
       (A) improvements to motorcyclist safety training curricula;
       (B) improvements in program delivery of motorcycle training 
     to both urban and rural areas, including--
       (i) procurement or repair of practice motorcycles;
       (ii) instructional materials;
       (iii) mobile training units; and
       (iv) leasing or purchasing facilities for closed-course 
     motorcycle skill training;
       (C) measures designed to increase the recruitment or 
     retention of motorcyclist safety training instructors; and
       (D) public awareness, public service announcements, and 
     other outreach programs to enhance driver awareness of 
     motorcyclists, such as the ``share-the-road'' safety messages 
     developed under subsection (g).
       (2) Suballocations of funds.--An agency of a State that 
     receives a grant under this section may suballocate funds 
     from the grant to a nonprofit organization incorporated in 
     that State to carry out under this section.
       (f) Definitions.--In this section, the following 
     definitions apply:
       (1) Motorcyclist safety training.--The term ``motorcyclist 
     safety training'' means a formal program of instruction 
     that--
       (A) 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) Motorcyclist awareness.--The term ``motorcyclist 
     awareness'' means individual or collective awareness of--
       (A) the presence of motorcycles on or near roadways; and
       (B) safe driving practices that avoid injury to 
     motorcyclists.
       (3) Motorcyclist awareness program.--The term 
     ``motorcyclist awareness program'' means an informational or 
     public awareness program designed to enhance motorcyclist 
     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 a motorcycle advisory 
     council appointed by the Governor of the State.
       (4) State.--The term ``State'' has the same meaning such 
     term has in section 101(a) of title 23, United States Code.
       (g) Share-the-Road Model Language.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary, in 
     consultation with the Administrator of the National Highway 
     Traffic Safety Administration, shall develop and provide to 
     the States model language for use in traffic safety education 
     courses, driver's manuals, and other driver's training 
     materials instructing the drivers of motor vehicles on the 
     importance of sharing the roads safely with motorcyclists.

     SEC. 2011. CHILD SAFETY AND CHILD BOOSTER SEAT INCENTIVE 
                   GRANTS.

       (a) General Authority.--Subject to the requirements of this 
     section, the Secretary shall make grants to States that are 
     enforcing a law requiring that any child riding in a 
     passenger motor vehicle in the State who is too large to be 
     secured in a child safety seat be secured in a child 
     restraint that meets the requirements prescribed by the 
     Secretary under section 3 of Anton's Law (49 U.S.C. 30127 
     note; 116 Stat. 2772).
       (b) Maintenance of Effort.--No grant may be made to a State 
     under this section in a fiscal year unless the State enters 
     into such agreements with the Secretary as the Secretary may 
     require to ensure that the State will maintain its aggregate 
     expenditures from all other sources for child safety seat and 
     child restraint programs at or above the average level of 
     such expenditures in its 2 fiscal years preceding the date of 
     enactment of this Act.
       (c) Federal Share.--The Federal share of the costs of 
     activities funded using amounts from grants under this 
     section shall not exceed--
       (1) for the first 3 fiscal years for which a State receives 
     a grant under this section, 75 percent; and
       (2) for the fourth fiscal year for which a State receives a 
     grant under this section, 50 percent.
       (d) Use of Grant Amounts.--
       (1) Allocations.--Of the amounts received by a State in 
     grants under this section for a fiscal year not more than 50 
     percent shall be used to fund programs for purchasing and 
     distributing child safety seats and child restraints to low-
     income families.
       (2) Remaining amounts.--Amounts received by a State in 
     grants under this section, other than amounts subject to 
     paragraph (1), shall be used to carry out child safety seat 
     and and child restraint programs, including the following:
       (A) A program to support enforcement of child restraint 
     laws.
       (B) A program to train child passenger safety 
     professionals, police officers, fire and emergency medical 
     personnel, educators, and parents concerning all aspects of 
     the use of child safety seats and and child restraints.
       (C) A program to educate the public concerning the proper 
     use and installation of child safety seats and and child 
     restraints.
       (e) Grant Amount.--The amount of a grant to a State for a 
     fiscal year under this section may not exceed 25 percent of 
     the amount apportioned to the State for fiscal year 2003 
     under section 402 of title 23, United States Code.
       (f) Applicability of Chapter 1.--The provisions contained 
     in section 402(d) of such title shall apply to this section.
       (g) Report.--A State that receives a grant under this 
     section shall transmit to the Secretary a report documenting 
     the manner in which the grant amounts were obligated and 
     expended and identifying the specific programs carried out 
     using the grant funds. The report shall be in a form 
     prescribed by the Secretary and may be combined with other 
     State grant reporting requirements under of chapter 4 of 
     title 23, United States Code.
       (h) Definitions.--In this section, the following 
     definitions apply:
       (1) Child restraint.--The term ``child restraint'' means 
     any product designed to provide restraint to a child 
     (including booster seats and other products used with a lap 
     and shoulder belt assembly) that meets applicable Federal 
     motor vehicle safety standards prescribed by the National 
     Highway Traffic Safety Administration.
       (2) Child safety seat.--The term ``child safety seat'' has 
     the meaning such term has in section 405(f) of title 23, 
     United States Code.
       (3) Passenger motor vehicle.--The term ``passenger motor 
     vehicle'' has the meaning such term has in section 405(f) of 
     such title.
       (4) State.--The term ``State'' has the meaning such term 
     has in section 101(a) of such title.

     SEC. 2012. SAFETY DATA.

       (a) In General.--Using funds made available to carry out 
     section 403 of title 23, United States Code, for fiscal years 
     2005 through 2009, the Secretary shall collect data and 
     compile statistics on accidents involving motor vehicles 
     being backed up that result in fatalities and injuries and 
     that occur on public and nonpublic roads and residential and 
     commercial driveways and parking facilities.
       (b) Report.--Not later than January 1, 2009, the Secretary 
     shall transmit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate a report on accidents described in subsection (a), 
     including the data collected and statistics compiled under 
     subsection (a) and any recommendations regarding measures to 
     be taken to reduce the number of such accidents and the 
     resulting fatalities and injuries.

     SEC. 2013. DRUG-IMPAIRED DRIVING ENFORCEMENT.

       (a) Illicit Drug.--In this section, the term ``illicit 
     drug'' includes substances listed in schedules I through V of 
     section 112(e) of the Controlled Substances Act (21 U.S.C. 
     812) not obtained by a legal and valid prescription.
       (b) Duties.--The Secretary shall-
       (1) advise and coordinate with other Federal agencies on 
     how to address the problem of driving under the influence of 
     an illegal drug; and
       (2) conduct research on the prevention, detection, and 
     prosecution of driving under the influence of an illegal 
     drug.
       (c) Report.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary, in cooperation with the 
     National Institutes of Health, shall submit to Congress a 
     report on the problem of drug-impaired driving.

[[Page H7315]]

       (2) Contents.--The report shall include, at a minimum, the 
     following:
       (A) An assessment of methodologies and technologies for 
     measuring driver impairment resulting from use of the most 
     common illicit drugs (including the use of such drugs in 
     combination with alcohol).
       (B) Effective and efficient methods for training law 
     enforcement personnel, including drug recognition experts, to 
     detect or measure the level of impairment of a driver who is 
     under the influence of an illicit drug by the use of 
     technology or otherwise.
       (C) A description of the role of drugs as causal factor in 
     traffic crashes and the extent of the problem of drug-
     impaired driving.
       (D) A description and assessment of current State and 
     Federal laws relating to drug-impaired driving.
       (E) Recommendations for addressing the problem of drug-
     impaired driving, including recommendations on levels of 
     impairment.
       (F) Recommendations for developing a model statute relating 
     to drug-impaired driving.
       (d) Model Statute.--
       (1) In general.--The Secretary shall develop a model 
     statute for States relating to drug-impaired driving.
       (2) Contents.--Based on recommendations and findings 
     contained in the report submitted under subsection (c), the 
     model statute may include-
       (A) threshold levels of impairment for illicit drugs;
       (B) practicable methods for detecting the presence of 
     illicit drugs; and
       (C) penalties for drug impaired driving.
       (3) Date.--The model statute shall be provided to States 
     not later than 1 year after date of submission of the report 
     under subsection (c).
       (e) Research and Development.--Section 403(b) of title 23, 
     United States Code, is amended by adding at the end the 
     following:
       ``(5) Technology to detect drug use and enable States to 
     efficiently process toxicology evidence.
       ``(6) Research on the effects of illicit drugs and the 
     compound effects of alcohol and illicit drugs on 
     impairment.''.
       (f) Funding.--Out of amounts made available to carry out 
     section 403 of title 23, United States Code, for each of 
     fiscal years 2006 through 2009, the Secretary shall make 
     available $1,200,000 for such fiscal year to carry out this 
     section.

     SEC. 2014. FIRST RESPONDER VEHICLE SAFETY PROGRAM.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Administrator of the National Highway Traffic Safety 
     Administration, should--
       (1) develop and implement a comprehensive program to 
     promote compliance with State and local laws intended to 
     increase the safe and efficient operation of first responder 
     vehicles;
       (2) compile a list of best practices by State and local 
     governments to promote compliance with the laws described in 
     paragraph (1);
       (3) analyze State and local laws intended to increase the 
     safe and efficient operation of first responder vehicles; and
       (4) develop model legislation to increase the safe and 
     efficient operation of first responder vehicles.
       (b) Partnerships.--The Secretary may enter into 
     partnerships with qualified organizations to carry out this 
     section.
       (c) Public Outreach.--The Secretary shall use a variety of 
     public outreach strategies to carry out this section, 
     including public service announcements, publication of 
     informational materials, and posting information on the 
     Internet.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to carry out this section for fiscal year 2006.

     SEC. 2015. DRIVER PERFORMANCE STUDY.

       (a) In General.--Using funds made available to carry out 
     section 403 of title 23, United States Code, for fiscal year 
     2005, the Secretary shall make $1,000,000 available to 
     conduct a study on the risks associated with glare to 
     oncoming drivers, including increased risks to drivers on 2-
     lane highways, increased risks to drivers over the age of 50, 
     and the overall effects of glare on driver performance.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science, 
     and Transportation of the Senate a report on the results of 
     the study and any recommendations regarding measures to 
     reduce the risks associated with glare to oncoming drivers.

     SEC. 2016. RURAL STATE EMERGENCY MEDICAL SERVICES 
                   OPTIMIZATION PILOT PROGRAM.

       (a) In General.--From funds made available to carry out 
     section 403 of title 23, United States Code, for fiscal year 
     2006, the Secretary shall make $1,000,000 available to 
     conduct a pilot program for optimizing emergency medical 
     services in a rural State.
       (b) Collecting Data.--The pilot program shall focus on 
     collecting geo-coded data for highway accidents and resulting 
     injuries, analyzing data to develop injury patterns and 
     distributions, and improving placement and management of 
     emergency medical services resources and personnel.
       (c) Selection.--The Secretary shall enter into an agreement 
     with the State of Alaska to conduct the pilot program.
       (d) Report.--Not later than 12 months after the completion 
     of the pilot program, the Secretary shall transmit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science, 
     and Transportation of the Senate a report on the results of 
     the pilot program and recommendations for application to 
     other rural States.

     SEC. 2017. OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING.

       (a) Improving Older Driver Safety.--
       (1) In general.--Of the funds made available to carry out 
     section 403 of title 23, United States Code, the Secretary 
     shall allocate $1,700,000 for each of fiscal years 2006 
     through 2009 to conduct a comprehensive research and 
     demonstration program to improve traffic safety pertaining to 
     older drivers.
       (2) Elements of program.--The program shall--
       (A) provide information and guidelines to assist older 
     drivers, physicians, and other related medical personnel, 
     families, licensing agencies, enforcement officers, and 
     various public and transit agencies in enhancing the safety 
     of older drivers;
       (B) improve the scientific basis of medical standards and 
     screenings strategies used in the licensing of all drivers in 
     a non-discriminatory manner;
       (C) conduct field tests to assess the safety benefits and 
     mobility impacts of different driver licensing strategies and 
     driver assessment and rehabilitation methods;
       (D) assess the value and improve the safety potential of 
     driver retraining courses of particular benefit to older 
     drivers; and
       (E) conduct other activities to accomplish the objectives 
     of this section.
       (3) Formulation of plan.--After consultation with affected 
     parties, the Secretary shall formulate an older driver 
     traffic safety plan to guide the design and implementation of 
     the program.
       (4) Submision of plan to congress.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     submit the plan to the Committee on Transportation and 
     Infrastructure House of Representatives and the Committee on 
     Commerce, Science, and Transportation of the Senate.
       (b) Law Enforcement Training.--
       (1) Requirement for program.--The Secretary shall carry out 
     a program to provide guidance and support to law enforcement 
     agencies in police chase techniques that are consistent with 
     the police chase guidelines issued by the International 
     Association of Chiefs of Police.
       (2) Amount for program.--Of the funds made available to 
     carry out section 403 of title 23, United States Code, the 
     Secretary shall allocate $500,000 in each of fiscal years 
     2006 through 2009 to carry out this subsection.

     SEC. 2018. 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.--Whoever, in or affecting interstate or foreign 
     commerce, knowingly sells a traffic signal preemption 
     transmitter to a nonqualifying user shall be fined under this 
     title, or imprisoned not more than 1 year, or both.
       ``(2) Use.--Whoever, in or affecting interstate or foreign 
     commerce, being a nonqualifying user makes unauthorized use 
     of a traffic signal preemption transmitter shall be fined 
     under this title, or 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 mechanism 
     that can change or alter a traffic signal's phase time or 
     sequence.
       ``(2) Nonqualifying user.--The term `nonqualifying user' 
     means a person who uses a traffic signal preemption 
     transmitter and is not acting on behalf of a public agency or 
     private corporation authorized by law to provide fire 
     protection, law enforcement, emergency medical services, 
     transit services, maintenance, or other services for a 
     Federal, State, or local government entity, but does not 
     include a person using a traffic signal preemption 
     transmitter for classroom or instructional purposes.''.
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by adding at the end the following:

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

     SEC. 2019. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE 
                   TECHNICAL CORRECTION.

       Section 404(d) of title 23, United States Code, is amended 
     by striking ``Commerce'' and inserting ``Transportation''.

     SEC. 2020. PRESIDENTIAL COMMISSION ON ALCOHOL-IMPAIRED 
                   DRIVING.

       (a) Findings.--Congress finds that--
       (1) there has been considerable progress over the past 25 
     years in reducing the number and rate of alcohol-related 
     highway facilities;
       (2) the National Highway Traffic Safety Administration 
     projects that fatalities in alcohol-related crashes declined 
     in 2003 for the 2nd year in a row;
       (3) in spite of this progress, an estimated 17,013 
     Americans died in 2003, in alcohol-related crashes;
       (4) these fatalities comprise 40 percent of the annual 
     total highway fatalities;
       (5) about 250,000 are injured each year in alcohol-related 
     crashes;
       (6) the past 2 years of decreasing alcohol-related 
     fatalities follows a 3-year increase;
       (7) alcohol-impaired driving is the Nation's most 
     frequently committed violent crime;
       (8) the annual cost of alcohol-related crashes is over 
     $100,000,000,000, including $9,000,000,000 in costs to 
     employers;
       (9) a Presidential Commission on Alcohol Impaired Driving 
     in 1982 and 1983 helped to lead to substantial progress on 
     this issue; and
       (10) these facts point to the need to renew the national 
     commitment to preventing these deaths and injuries.

[[Page H7316]]

       (b) Sense of the Congress.--It is the sense of Congress 
     that, in an effort to further change the culture of alcohol-
     impaired driving on our Nation's highways, the President 
     should consider establishing a Presidential Commission on 
     Alcohol-Impaired Driving--
       (1) comprised of representatives of--
       (A) State and local governments, including State 
     legislators;
       (B) law enforcement;
       (C) traffic safety experts, including researchers;
       (D) victims of alcohol-related crashes;
       (E) affected industries, including the alcohol, insurance, 
     motorcycle, and auto industries;
       (F) the business community;
       (G) labor;
       (H) the medical community;
       (I) public health; and
       (J) Members of Congress; and
       (2) that not later than September 30, 2006, would--
       (A) conduct a full examination of alcohol-impaired driving 
     issues; and
       (B) make recommendations for a broad range of policy and 
     program changes that would serve to further reduce the level 
     of deaths and injuries caused by alcohol impaired driving.

     SEC. 2021. SENSE OF THE CONGRESS IN SUPPORT OF INCREASED 
                   PUBLIC AWARENESS OF BLOOD ALCOHOL CONCENTRATION 
                   LEVELS AND DANGERS OF ALCOHOL-IMPAIRED DRIVING.

       (a) Findings.--Congress finds that--
       (1) in 2003--
       (A) 17,013 Americans died in alcohol-related traffic 
     crashes;
       (B) 40 percent of the persons killed in traffic crashes 
     died in alcohol-related crashes; and
       (C) drivers with blood alcohol concentration levels over 
     0.15 were involved in 58 percent of alcohol-related traffic 
     fatalities;
       (2) research shows that 77 percent of Americans think they 
     have received enough information about alcohol-impaired 
     driving and the way in which alcohol affects individual blood 
     alcohol levels; and
       (3) only 28 percent of the American public can correctly 
     identify the legal limit of blood alcohol concentration of 
     the State in which they reside.
       (b) Sense of Congress.--It is the sense of Congress that 
     the National Highway Traffic Safety Administration should 
     work with State and local governments and independent 
     organizations to increase public awareness of--
       (1) State legal limits on blood alcohol concentration 
     levels; and
       (2) the dangers of alcohol-impaired driving.

     SEC. 2022. EFFECTIVE DATE.

       Sections 2002 through 2007 of this title (and the 
     amendments and repeals made by such sections) shall take 
     effect October 1, 2005.
                    TITLE III--PUBLIC TRANSPORTATION

     SEC. 3001. SHORT TITLE.

       This title may be cited as the ``Federal Public 
     Transportation Act of 2005''.

     SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES CODE; 
                   UPDATED TERMINOLOGY.

       (a) Amendments to Title 49.--Except as otherwise 
     specifically provided, whenever in this title an amendment or 
     repeal is expressed in terms of an amendment to, or repeal 
     of, a section or other provision of law, the reference shall 
     be considered to be made to a section or other provision of 
     title 49, United States Code.
       (b) Updated Terminology.--Chapter 53 is amended--
       (1) in the chapter heading by striking ``MASS'' and 
     inserting ``PUBLIC'';
       (2) in section 5310(h) by striking ``Mass'' and inserting 
     ``Public'';
       (3) in the subsection heading for section 5331(b) by 
     striking ``Mass'' and inserting ``Public''; and
       (4) by striking ``mass'' each place the term appears before 
     ``transportation'' and inserting ``public'', except in 
     sections 5301(f), 5302(a)(7), 5315, and 5323(a)(1).
       (c) Table of Chapters.--The table of chapters for subtitle 
     III is amended in the item relating to chapter 53 by striking 
     ``Mass'' and inserting ``Public''.

     SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

       (a) In General.--Section 5301(a) is amended to read as 
     follows:
       ``(a) Development and Revitalization of Public 
     Transportation Systems.--It is in the interest of the United 
     States, including its economic interest, to foster the 
     development and revitalization of public transportation 
     systems that--
       ``(1) maximize the safe, secure, and efficient mobility of 
     individuals;
       ``(2) minimize environmental impacts; and
       ``(3) minimize transportation-related fuel consumption and 
     reliance on foreign oil.''.
       (b) General Findings.--Section 5301(b)(1) is amended--
       (1) by striking ``70 percent'' and inserting ``two-
     thirds''; and
       (2) by striking ``urban areas'' and inserting ``urbanized 
     areas''.
       (c) Preserving the Environment.--Section 5301(e) is 
     amended--
       (1) by striking ``an urban'' and inserting ``a''; and
       (2) by striking ``under sections 5309 and 5310 of this 
     title''.
       (d) General Purposes.--Section 5301(f) is amended--
       (1) in paragraph (1)--
       (A) by striking ``mass'' the first place it appears and 
     inserting ``public''; and
       (B) by striking ``public and private mass transportation 
     companies'' and inserting ``both public transportation 
     companies and private companies engaged in public 
     transportation'';
       (2) in paragraph (2)--
       (A) by striking ``urban mass'' and inserting ``public''; 
     and
       (B) by striking ``public and private mass transportation 
     companies'' and inserting ``both public transportation 
     companies and private companies engaged in public 
     transportation'';
       (3) in paragraph (3)--
       (A) by striking ``urban mass'' and inserting ``public''; 
     and
       (B) by striking ``public or private mass transportation 
     companies'' and inserting ``public transportation companies 
     or private companies engaged in public transportation''; and
       (4) in paragraph (5) by striking ``urban mass'' and 
     inserting ``public''.

     SEC. 3004. DEFINITIONS.

       (a) Lead-in.--Section 5302(a) is amended in the matter 
     preceding paragraph (1) by striking ``In this chapter'' and 
     inserting ``Except as otherwise specifically provided, in 
     this chapter''.
       (b) Capital Project.--Section 5302(a)(1) is amended--
       (1) in subparagraph (G) by inserting ``construction, 
     renovation, and improvement of intercity bus and intercity 
     rail stations and terminals,'' before ``and the renovation 
     and improvement of historic transportation facilities,'';
       (2) in subparagraph (G)(ii) by inserting ``(other than an 
     intercity bus station or terminal)'' after ``commercial 
     revenue-producing facility'';
       (3) in subparagraph (H) by striking ``or'' at the end;
       (4) in subparagraph (I) by striking the period at the end 
     and inserting a semicolon; and
       (5) by adding at the end the following:
       ``(J) crime prevention and security--
       ``(i) including--

       ``(I) projects to refine and develop security and emergency 
     response plans;
       ``(II) projects aimed at detecting chemical and biological 
     agents in public transportation;
       ``(III) the conduct of emergency response drills with 
     public transportation agencies and local first response 
     agencies; and
       ``(IV) security training for public transportation 
     employees; but

       ``(ii) excluding all expenses related to operations, other 
     than such expenses incurred in conducting activities 
     described in clauses (i)(III) and (i)(IV);
       ``(K) establishing a debt service reserve, made up of 
     deposits with a bondholder's trustee, to ensure the timely 
     payment of principal and interest on bonds issued by a grant 
     recipient to finance an eligible project under this chapter; 
     or
       ``(L) mobility management--
       ``(i) consisting of short-range planning and management 
     activities and projects for improving coordination among 
     public transportation and other transportation service 
     providers carried out by a recipient or subrecipient through 
     an agreement entered into with a person, including a 
     governmental entity, under this chapter (other than section 
     5309); but
       ``(ii) excluding operating public transportation 
     services.''.
       (c) Individual With a Disability.--Section 5302(a)(5) is 
     amended--
       (1) in the paragraph heading by striking ``Handicapped 
     individual'' and inserting ``Individual with a disability''; 
     and
       (2) by striking ``handicapped individual'' and inserting 
     ``individual with a disability''.
       (d) Mass Transportation.--Section 5302(a)(7) is amended to 
     read as follows:
       ``(7) Mass transportation.--The term `mass transportation' 
     means public transportation.''.
       (e) Public Transportation.--Section 5302(a)(10) is amended 
     to read as follows:
       ``(10) Public transportation.--The term `public 
     transportation' means transportation by a conveyance that 
     provides regular and continuing general or special 
     transportation to the public, but does not include schoolbus, 
     charter, or intercity bus transportation or intercity 
     passenger rail transportation provided by the entity 
     described in chapter 243 (or a successor to such entity).''.
       (f) Urbanized Area.--Section 5302(a)(17) is amended to read 
     as follows:
       ``(17) Urbanized area.--The term `urbanized area' means an 
     area encompassing a population of not less than 50,000 people 
     that has been defined and designated in the most recent 
     decennial census as an `urbanized area' by the Secretary of 
     Commerce.''.
       (g) Authority to Modify Definition.--Section 5302(b) is 
     amended--
       (1) in the subsection heading by striking ``Handicapped 
     Individual'' and inserting ``Individual With a Disability''; 
     and
       (2) by striking ``handicapped individual'' and inserting 
     ``individual with a disability''.

     SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING.

       (a) In General.--Section 5303 is amended to read as 
     follows:

     ``Sec. 5303. Metropolitan transportation planning

       ``(a) Policy.--It is in the national interest to--
       ``(1) encourage and promote the safe and efficient 
     management, operation, and development of surface 
     transportation systems that will serve the mobility needs of 
     people and freight and foster economic growth and development 
     within and between States and urbanized areas, while 
     minimizing transportation-related fuel consumption and air 
     pollution through metropolitan and statewide transportation 
     planning processes identified in this chapter; and
       ``(2) encourage the continued improvement and evolution of 
     the metropolitan and statewide transportation planning 
     processes by metropolitan planning organizations, State 
     departments of transportation, and public transit operators 
     as guided by the planning factors identified in subsection 
     (h) and section 5304(d).
       ``(b) Definitions.--In this section and section 5304, the 
     following definitions apply:
       ``(1) Metropolitan planning area.--The term `metropolitan 
     planning area' means the geographic area determined by 
     agreement between

[[Page H7317]]

     the metropolitan planning organization for the area and the 
     Governor under subsection (e).
       ``(2) Metropolitan planning organization.--The term 
     `metropolitan planning organization' means the policy board 
     of an organization created as a result of the designation 
     process in subsection (d).
       ``(3) Nonmetropolitan area.--The term `nonmetropolitan 
     area' means a geographic area outside a designated 
     metropolitan planning area.
       ``(4) Nonmetropolitan local official.--The term 
     `nonmetropolitan local official' means elected and appointed 
     officials of general purpose local government in a 
     nonmetropolitan area with responsibility for transportation.
       ``(5) TIP.--The term `TIP' means a transportation 
     improvement program developed by a metropolitan planning 
     organization under subsection (j).
       ``(6) Urbanized area.--The term `urbanized area' means a 
     geographic area with a population of 50,000 or more, as 
     designated by the Bureau of the Census.
       ``(c) General Requirements.--
       ``(1) Development of long-range plans and tips.--To 
     accomplish the objectives in subsection (a), metropolitan 
     planning organizations designated under subsection (d), in 
     cooperation with the State and public transportation 
     operators, shall develop long-range transportation plans and 
     transportation improvement programs for metropolitan planning 
     areas of the State.
       ``(2) Contents.--The plans and TIPs for each metropolitan 
     area shall provide for the development and integrated 
     management and operation of transportation systems and 
     facilities (including accessible pedestrian walkways and 
     bicycle transportation facilities) that will function as an 
     intermodal transportation system for the metropolitan 
     planning area and as an integral part of an intermodal 
     transportation system for the State and the United States.
       ``(3) Process of development.--The process for developing 
     the plans and TIPs shall provide for consideration of all 
     modes of transportation and shall be continuing, cooperative, 
     and comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       ``(d) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process required by this section, a metropolitan planning 
     organization shall be designated for each urbanized area with 
     a population of more than 50,000 individuals--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that together represent at 
     least 75 percent of the affected population (including the 
     largest incorporated city (based on population) as named by 
     the Bureau of the Census); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Structure.--Each metropolitan planning organization 
     that serves an area designated as a transportation management 
     area, when designated or redesignated under this subsection, 
     shall consist of--
       ``(A) local elected officials;
       ``(B) officials of public agencies that administer or 
     operate major modes of transportation in the metropolitan 
     area; and
       ``(C) appropriate State officials.
       ``(3) Limitation on statutory construction.--Nothing in 
     this subsection shall be construed to interfere with the 
     authority, under any State law in effect on December 18, 
     1991, of a public agency with multimodal transportation 
     responsibilities to--
       ``(A) develop the plans and TIPs for adoption by a 
     metropolitan planning organization; and
       ``(B) develop long-range capital plans, coordinate transit 
     services and projects, and carry out other activities 
     pursuant to State law.
       ``(4) Continuing designation.--A designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       ``(5) Redesignation procedures.--A metropolitan planning 
     organization may be redesignated by agreement between the 
     Governor and units of general purpose local government that 
     together represent at least 75 percent of the existing 
     planning area population (including the largest incorporated 
     city (based on population) as named by the Bureau of the 
     Census) as appropriate to carry out this section.
       ``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be des ignated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and 
     complexity of the existing metropolitan planning area make 
     designation of more than 1 metropolitan planning 
     organization for the area appropriate.
       ``(e) Metropolitan Planning Area Boundaries.--
       ``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.
       ``(2) Included area.--Each metropolitan planning area--
       ``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period for the transportation plan; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Bureau of the Census.
       ``(3) Identification of new urbanized areas within existing 
     planning area boundaries.--The designation by the Bureau of 
     the Census of new urbanized areas within an existing 
     metropolitan planning area shall not require the 
     redesignation of the existing metropolitan planning 
     organization.
       ``(4) Existing metropolitan planning areas in 
     nonattainment.--Notwithstanding paragraph (2), in the case of 
     an urbanized area des ignated as a nonattainment area for 
     ozone or carbon monoxide under the Clean Air Act (42 
     U.S.C. 7401 et seq.) as of the date of enactment of the 
     Federal Public Transportation Act of 2005, the boundaries 
     of the metropolitan planning area in existence as of such 
     date of enactment shall be retained; except that the 
     boundaries may be adjusted by agreement of the Governor 
     and affected metropolitan planning organizations in the 
     manner described in subsection (d)(5).
       ``(5) New metropolitan planning areas in nonattainment.--In 
     the case of an urbanized area designated after the date of 
     enactment of the Federal Public Transportation Act of 2005 as 
     a nonattainment area for ozone or carbon monoxide, the 
     boundaries of the metropolitan planning area--
       ``(A) shall be established in the manner described in 
     subsection (d)(1);
       ``(B) shall encompass the areas described in paragraph 
     (2)(A);
       ``(C) may encompass the areas described in paragraph 
     (2)(B); and
       ``(D) may address any nonattainment area identified under 
     the Clean Air Act for ozone or carbon monoxide.
       ``(f) Coordination in Multistate Areas.--
       ``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       ``(2) Interstate compacts.--The consent of Congress is 
     granted to any 2 or more States--
       ``(A) to enter into agreements or compacts, not in conflict 
     with any law of the United States, for cooperative efforts 
     and mutual assistance in support of activities authorized 
     under this section as the activities pertain to interstate 
     areas and localities within the States; and
       ``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       ``(3) Lake tahoe region.--
       ``(A) Definition.--In this paragraph, the term `Lake Tahoe 
     region' has the meaning given the term `region' in 
     subdivision (a) of article II of the Tahoe Regional Planning 
     Compact, as set forth in the first section of Public Law 96-
     551 (94 Stat. 3234).
       ``(B) Transportation planning process.--The Secretary 
     shall--
       ``(i) establish with the Federal land management agencies 
     that have jurisdiction over land in the Lake Tahoe region a 
     transportation planning process for the region; and
       ``(ii) coordinate the transportation planning process with 
     the planning process required of State and local governments 
     under this section and section 5304.
       ``(C) Interstate compact.--
       ``(i) In general.--Subject to clause (ii), and 
     notwithstanding subsection (b), to carry out the 
     transportation planning process required by this section, the 
     consent of Congress is granted to the States of California 
     and Nevada to designate a metropolitan planning organization 
     for the Lake Tahoe region, by agreement between the Governors 
     of the States of California and Nevada and units of general 
     purpose local government that together represent at least 75 
     percent of the affected population (including the central 
     city or cities (as defined by the Bureau of the Census)), or 
     in accordance with procedures established by applicable State 
     or local law.
       ``(ii) Involvement of federal land management agencies.--

       ``(I) Representation.--The policy board of a metropolitan 
     planning organization designated under clause (i) shall 
     include a representative of each Federal land management 
     agency that has jurisdiction over land in the Lake Tahoe 
     region.
       ``(II) Funding.--In addition to funds made available to the 
     metropolitan planning organization for the Lake Tahoe region 
     under other provisions of this chapter and title 23, 1 
     percent of the funds allocated under section 202 of title 23 
     shall be used to carry out the transportation planning 
     process for the Lake Tahoe region under this subparagraph.

       ``(D) Activities.--Highway projects included in 
     transportation plans developed under this paragraph--
       ``(i) shall be selected for funding in a manner that 
     facilitates the participation of the Federal land management 
     agencies that have jurisdiction over land in the Lake Tahoe 
     region; and
       ``(ii) may, in accordance with chapter 2 of title 23, be 
     funded using funds allocated under section 202 of such title.
       ``(4) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(g) MPO Consultation in Plan and TIP Coordination.--
       ``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act, each 
     metropolitan planning organization shall consult with the 
     other metropolitan planning organizations designated for 
     such area and the State in the coordination of plans and 
     TIPs required by this section.
       ``(2) Transportation improvements located in multiple 
     mpos.--If a transportation improvement, funded from the 
     Highway Trust Fund or authorized under this chapter, is 
     located within the boundaries of more than 1 metropolitan 
     planning area, the metropolitan planning organizations shall 
     coordinate plans and TIPs regarding the transportation 
     improvement.

[[Page H7318]]

       ``(3) Relationship with other planning officials.--The 
     Secretary shall encourage each metropolitan planning 
     organization to consult with officials responsible for other 
     types of planning activities that are affected by 
     transportation in the area (including State and local planned 
     growth, economic development, environmental protection, 
     airport operations, and freight movements) or to coordinate 
     its planning process, to the maximum extent practicable, with 
     such planning activities. Under the metropolitan planning 
     process, transportation plans and TIPs shall be developed 
     with due consideration of other related planning activities 
     within the metropolitan area, and the process shall provide 
     for the design and delivery of transportation services within 
     the metropolitan area that are provided by--
       ``(A) recipients of assistance under this chapter;
       ``(B) governmental agencies and nonprofit organizations 
     (including representatives of the agencies and organizations) 
     that receive Federal assistance from a source other than the 
     Department of Transportation to provide nonemergency 
     transportation services; and
       ``(C) recipients of assistance under section 204 of title 
     23.
       ``(h) Scope of Planning Process.--
       ``(1) In general.--The metropolitan planning process for a 
     metropolitan planning area under this section shall provide 
     for consideration of projects and strategies that will--
       ``(A) support the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     for freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between transportation improvements and State and 
     local planned growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Failure to consider factors.--The failure to consider 
     any factor specified in paragraph (1) shall not be reviewable 
     by any court under this chapter, title 23, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a transportation plan, a TIP, a project or 
     strategy, or the certification of a planning process.
       ``(i) Development of Transportation Plan.--
       ``(1) In general.--Each metropolitan planning organization 
     shall prepare a transportation plan for its metropolitan 
     planning area in accordance with the requirements of this 
     subsection. The metropolitan planning organization shall 
     prepare and update such plan every 4 years (or more 
     frequently, if the metropolitan planning organization elects 
     to update more frequently) in the case of each of the 
     following:
       ``(A) Any area designated as nonattainment, as defined in 
     section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)).
       ``(B) Any area that was nonattainment and subsequently 
     designated to attainment in accordance with section 107(d)(3) 
     of that Act (42 U.S.C. 7407(d)(3)) and that is subject to a 
     maintenance plan under section 175A of that Act (42 U.S.C. 
     7505a).

     In the case of any other area required to have a 
     transportation plan in accordance with the requirements of 
     this subsection, the metropolitan planning organization shall 
     prepare and update such plan every 5 years unless the 
     metropolitan planning organization elects to update more 
     frequently.
       ``(2) Transportation plan.--A transportation plan under 
     this section shall be in a form that the Secretary determines 
     to be appropriate and shall contain, at a minimum, the 
     following:
       ``(A) Identification of transportation facilities.--An 
     identification of transportation facilities (including major 
     roadways, transit, multimodal and intermodal facilities, and 
     intermodal connectors) that should function as an integrated 
     metropolitan transportation system, giving emphasis to those 
     facilities that serve important national and regional 
     transportation functions. In formulating the transportation 
     plan, the metropolitan planning organization shall consider 
     factors described in subsection (h) as such factors relate to 
     a 20-year forecast period.
       ``(B) Mitigation activities.--
       ``(i) In general.--A long-range transportation plan shall 
     include a discussion of types of potential environmental 
     mitigation activities and potential areas to carry out these 
     activities, including activities that may have the greatest 
     potential to restore and maintain the environmental functions 
     affected by the plan.
       ``(ii) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(C) Financial plan.--A financial plan that demonstrates 
     how the adopted transportation plan can be implemented, 
     indicates resources from public and private sources that are 
     reasonably expected to be made available to carry out the 
     plan, and recommends any additional financing strategies for 
     needed projects and programs. The financial plan may include, 
     for illustrative purposes, additional projects that would be 
     included in the adopted transportation plan if reasonable 
     additional resources beyond those identified in the financial 
     plan were available. For the purpose of developing the 
     transportation plan, the metropolitan planning organization, 
     transit operator, and State shall cooperatively develop 
     estimates of funds that will be available to support plan 
     implementation.
       ``(D) Operational and management strategies.--Operational 
     and management strategies to improve the performance of 
     existing transportation facilities to relieve vehicular 
     congestion and maximize the safety and mobility of people and 
     goods.
       ``(E) Capital investment and other strategies.--Capital 
     investment and other strategies to preserve the existing and 
     projected future metropolitan transportation infrastructure 
     and provide for multimodal capacity increases based on 
     regional priorities and needs.
       ``(F) Transportation and transit enhancement activities.--
     Proposed transportation and transit enhancement activities.
       ``(3) Coordination with clean air act agencies.--In 
     metropolitan areas which are in nonattainment for ozone or 
     carbon monoxide under the Clean Air Act, the metropolitan 
     planning organization shall coordinate the development of a 
     transportation plan with the process for development of the 
     transportation control measures of the State implementation 
     plan required by the Clean Air Act.
       ``(4) Consultation.--
       ``(A) In general.--In each metropolitan area, the 
     metropolitan planning organization shall consult, as 
     appropriate, with State and local agencies responsible for 
     land use management, natural resources, environmental 
     protection, conservation, and historic preservation 
     concerning the development of a long-range transportation 
     plan.
       ``(B) Issues.--The consultation shall involve, as 
     appropriate--
       ``(i) comparison of transportation plans with State 
     conservation plans or maps, if available; or
       ``(ii) comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(5) Participation by interested parties.--
       ``(A) In general.--Each metropolitan planning organization 
     shall provide citizens, affected public agencies, 
     representatives of public transportation employees, freight 
     shippers, providers of freight transportation services, 
     private providers of transportation, representatives of users 
     of public transportation, representatives of users of 
     pedestrian walkways and bicycle transportation facilities, 
     representatives of the disabled, and other interested parties 
     with a reasonable opportunity to comment on the 
     transportation plan.
       ``(B) Contents of participation plan.--A participation 
     plan--
       ``(i) shall be developed in consultation with all 
     interested parties; and
       ``(ii) shall provide that all interested parties have 
     reasonable opportunities to comment on the contents of the 
     transportation plan.
       ``(C) Methods.--In carrying out subparagraph (A), the 
     metropolitan planning organization shall, to the maximum 
     extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford reasonable opportunity for 
     consideration of public information under subparagraph (A).
       ``(6) Publication.--A transportation plan involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review, including (to the maximum extent practicable) 
     in electronically accessible formats and means, such as the 
     World Wide Web, approved by the metropolitan planning 
     organization and submitted for information purposes to the 
     Governor at such times and in such manner as the Secretary 
     shall establish.
       ``(7) Selection of projects from illustrative list.--
     Notwithstanding paragraph (2)(C), a State or metropolitan 
     planning organization shall not be required to select any 
     project from the illustrative list of additional projects 
     included in the financial plan under paragraph (2)(C).
       ``(j) Metropolitan Tip.--
       ``(1) Development.--
       ``(A) In general.--In cooperation with the State and any 
     affected public transportation operator, the metropolitan 
     planning organization designated for a metropolitan area 
     shall develop a TIP for the area for which the organization 
     is designated.
       ``(B) Opportunity for comment.--In developing the TIP, the 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(C) Funding estimates.--For the purpose of developing the 
     TIP, the metropolitan planning organization, public 
     transportation agency, and State shall cooperatively develop 
     estimates of funds that are reasonably expected to be 
     available to support program implementation.
       ``(D) Updating and approval.--The TIP shall be updated at 
     least once every 4 years and shall be approved by the 
     metropolitan planning organization and the Governor.
       ``(2) Contents.--
       ``(A) Priority list.--The TIP shall include a priority list 
     of proposed federally supported projects and strategies to be 
     carried out within each 4-year period after the initial 
     adoption of the TIP.
       ``(B) Financial plan.--The TIP shall include a financial 
     plan that--
       ``(i) demonstrates how the TIP can be implemented;

[[Page H7319]]

       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be available to carry out the 
     program;
       ``(iii) identifies innovative financing techniques to 
     finance projects, programs, and strategies; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the approved TIP if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(C) Descriptions.--Each project in the TIP shall include 
     sufficient descriptive material (such as type of work, 
     termini, length, and other similar factors) to identify the 
     project or phase of the project.
       ``(3) Included projects.--
       ``(A) Projects under this chapter and title 23.--A TIP 
     developed under this subsection for a metropolitan area shall 
     include the projects within the area that are proposed for 
     funding under this chapter and chapter 1 of title 23.
       ``(B) Projects under chapter 2 of title 23.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually in the transportation improvement 
     program.
       ``(C) Consistency with long-range transportation plan.--
     Each project shall be consistent with the long-range 
     transportation plan developed under subsection (i) for the 
     area.
       ``(D) Requirement of anticipated full funding.--The program 
     shall include a project, or an identified phase of a project, 
     only if full funding can reasonably be anticipated to be 
     available for the project within the time period contemplated 
     for completion of the project.
       ``(4) Notice and comment.--Before approving a TIP, a 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(5) Selection of projects.--
       ``(A) In general.--Except as otherwise provided in 
     subsection (k)(4) and in addition to the TIP development 
     required under paragraph (1), the selection of federally 
     funded projects in metropolitan areas shall be carried out, 
     from the approved TIP--
       ``(i) by--

       ``(I) in the case of projects under title 23, the State; 
     and
       ``(II) in the case of projects under this chapter, the 
     designated recipients of public transportation funding; and

       ``(ii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved TIP 
     in place of another project in the program.
       ``(6) Selection of projects from illustrative list.--
       ``(A) No required selection.--Notwithstanding paragraph 
     (2)(B)(iv), a State or metropolitan planning organization 
     shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv).
       ``(B) Required action by the secretary.--Action by the 
     Secretary shall be required for a State or metropolitan 
     planning organization to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv) for inclusion in an 
     approved TIP.
       ``(7) Publication.--
       ``(A) Publication of tips.--A TIP involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review.
       ``(B) Publication of annual listings of projects.--An 
     annual listing of projects, including investments in 
     pedestrian walkways and bicycle transportation facilities, 
     for which Federal funds have been obligated in the preceding 
     year shall be published or otherwise made available by the 
     cooperative effort of the State, transit operator, and 
     metropolitan planning organization for public review. The 
     listing shall be consistent with the categories identified in 
     the TIP.
       ``(C) Rulemaking.--Not later than 180 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2005, the Secretary shall issue regulations setting standards 
     for the listing required by subparagraph (B) and specifying 
     the types of data to be included in such list, including 
     sufficient information about each project to identify its 
     type, location, and amount obligated.
       ``(k) Transportation Management Areas.--
       ``(1) Identification and designation.--
       ``(A) Required identification.--The Secretary shall 
     identify as a transportation management area each urbanized 
     area (as defined by the Bureau of the Census) with a 
     population of over 200,000 individuals.
       ``(B) Designations on request.--The Secretary shall 
     designate any additional area as a transportation management 
     area on the request of the Governor and the metropolitan 
     planning organization designated for the area.
       ``(2) Transportation plans.--In a metropolitan planning 
     area serving a transportation management area, transportation 
     plans shall be based on a continuing and comprehensive 
     transportation planning process carried out by the 
     metropolitan planning organization in cooperation with the 
     State and public transportation operators.
       ``(3) Congestion management process.--Within a metropolitan 
     planning area serving a transportation management area, the 
     transportation planning process under this section shall 
     address congestion management through a process that provides 
     for effective management and operation, based on a 
     cooperatively developed and implemented metropolitan-wide 
     strategy, of new and existing transportation facilities 
     eligible for funding under this chapter and title 23 through 
     the use of travel demand reduction and operational management 
     strategies. The Secretary shall establish an appropriate 
     phase-in schedule for compliance with the requirements of 
     this section but no sooner than one year after the 
     identification of a transportation management area.
       ``(4) Selection of projects.--
       ``(A) In general.--All federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under title 23 
     (excluding projects carried out on the National Highway 
     System and projects carried out under the bridge program or 
     the Interstate maintenance program) or under this chapter 
     shall be selected for implementation from the approved TIP by 
     the metropolitan planning organization designated for the 
     area in consultation with the State and any affected public 
     transportation operator.
       ``(B) National highway system projects.--Projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area on the National 
     Highway System and projects carried out within such 
     boundaries under the bridge program or the Interstate 
     maintenance program under title 23 shall be selected for 
     implementation from the approved TIP by the State in 
     cooperation with the metropolitan planning organization 
     designated for the area.
       ``(5) Certification.--
       ``(A) In general.--The Secretary shall--
       ``(i) ensure that the metropolitan planning process of a 
     metropolitan planning organization serving a transportation 
     management area is being carried out in accordance with 
     applicable provisions of Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less often 
     than once every 4 years, that the requirements of this 
     paragraph are met with respect to the metropolitan planning 
     process.
       ``(B) Requirements for certification.--The Secretary may 
     make the certification under subparagraph (A) if--
       ``(i) the transportation planning process complies with the 
     requirements of this section and other applicable 
     requirements of Federal law; and
       ``(ii) there is a TIP for the metropolitan planning area 
     that has been approved by the metropolitan planning 
     organization and the Governor.
       ``(C) Effect of failure to certify.--
       ``(i) Withholding of project funds.--If a metropolitan 
     planning process of a metropolitan planning organization 
     serving a transportation management area is not certified, 
     the Secretary may withhold up to 20 percent of the funds 
     attributable to the metropolitan planning area of the 
     metropolitan planning organization for projects funded under 
     this chapter and title 23.
       ``(ii) Restoration of withheld funds.--The withheld funds 
     shall be restored to the metropolitan planning area at such 
     time as the metropolitan planning process is certified by the 
     Secretary.
       ``(D) Review of certification.--In making certification 
     determinations under this paragraph, the Secretary shall 
     provide for public involvement appropriate to the 
     metropolitan area under review.
       ``(l) Abbreviated Plans for Certain Areas.--
       ``(1) In general.--Subject to paragraph (2), in the case of 
     a metropolitan area not designated as a transportation 
     management area under this section, the Secretary may provide 
     for the development of an abbreviated transportation plan and 
     TIP for the metropolitan planning area that the Secretary 
     determines is appropriate to achieve the purposes of this 
     section, taking into account the complexity of transportation 
     problems in the area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans or TIPs for a metropolitan area that is in 
     nonattainment for ozone or carbon monoxide under the Clean 
     Air Act.
       ``(m) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provisions of 
     this chapter or title 23, for transportation management areas 
     classified as nonattainment for ozone or carbon monoxide 
     pursuant to the Clean Air Act, Federal funds may not be 
     advanced in such area for any highway project that will 
     result in a significant increase in the carrying capacity for 
     single-occupant vehicles unless the project is addressed 
     through a congestion management process.
       ``(2) Applicability.--This subsection applies to a 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (e).
       ``(n) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed to confer on a metropolitan 
     planning organization the authority to impose legal 
     requirements on any transportation facility, provider, or 
     project not eligible under this chapter or title 23.
       ``(o) Funding.--Funds set aside under section 5305(g) of 
     this title or section 104(f) of title 23 shall be available 
     to carry out this section.
       ``(p) Continuation of Current Review Practice.--Since plans 
     and TIPs described in this section are subject to a 
     reasonable opportunity for public comment, since individual 
     projects included in plans and TIPs are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning

[[Page H7320]]

     plans and TIPs described in this section have not been 
     reviewed under such Act as of January 1, 1997, any decision 
     by the Secretary concerning a plan or TIP described in this 
     section shall not be considered to be a Federal action 
     subject to review under such Act.''.
       (b) Schedule for Implementation.--The Secretary shall issue 
     guidance on a schedule for implementation of the changes made 
     by this section, taking into consideration the established 
     planning update cycle for States and metropolitan planning 
     organizations. The Secretary shall not require a State or 
     metropolitan planning organization to deviate from its 
     established planning update cycle to implement changes made 
     by this section. Beginning July 1, 2007, State or 
     metropolitan planning organization plan or program updates 
     shall reflect changes made by this section.
       (c) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5303 and 
     inserting the following:

``5303. Metropolitan transportation planning.''.

     SEC. 3006. STATEWIDE TRANSPORTATION PLANNING.

       (a) In General.--Section 5304 is amended to read as 
     follows:

     ``Sec. 5304. Statewide transportation planning

       ``(a) General Requirements.--
       ``(1) Development of plans and programs.--To accomplish the 
     objectives stated in section 5303(a), each State shall 
     develop a statewide transportation plan and a statewide 
     transportation improvement program for all areas of the 
     State, subject to section 5303.
       ``(2) Contents.--The statewide transportation plan and the 
     transportation improvement program developed for each State 
     shall provide for the development and integrated management 
     and operation of transportation systems and facilities 
     (including accessible pedestrian walkways and bicycle 
     transportation facilities) that will function as an 
     intermodal transportation system for the State and an 
     integral part of an intermodal transportation system for the 
     United States.
       ``(3) Process of development.--The process for developing 
     the statewide plan and the transportation improvement program 
     shall provide for consideration of all modes of 
     transportation and the policies stated in section 5303(a), 
     and shall be continuing, cooperative, and comprehensive to 
     the degree appropriate, based on the complexity of the 
     transportation problems to be addressed.
       ``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--A State shall--
       ``(1) coordinate planning carried out under this section 
     with the transportation planning activities carried out under 
     section 5303 for metropolitan areas of the State and with 
     statewide trade and economic development planning activities 
     and related multistate planning efforts; and
       ``(2) develop the transportation portion of the State 
     implementation plan as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Interstate Agreements.--
       ``(1) In general.--The consent of Congress is granted to 2 
     or more States entering into agreements or compacts, not in 
     conflict with any law of the United States, for cooperative 
     efforts and mutual assistance in support of activities 
     authorized under this section related to interstate areas and 
     localities in the States and establishing authorities the 
     States consider desirable for making the agreements and 
     compacts effective.
       ``(2) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(d) Scope of Planning Process.--
       ``(1) In general.--Each State shall carry out a statewide 
     transportation planning process that provides for 
     consideration and implementation of projects, strategies, and 
     services that will--
       ``(A) support the economic vitality of the United States, 
     the States, nonmetropolitan areas, and metropolitan areas, 
     especially by enabling global competitiveness, productivity, 
     and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between transportation improvements and State and 
     local planned growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes throughout 
     the State, for people and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Failure to consider factors.--The failure to consider 
     any factor specified in paragraph (1) shall not be reviewable 
     by any court under this chapter, title 23, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a statewide transportation plan, the transportation 
     improvement program, a project or strategy, or the 
     certification of a planning process.
       ``(e) Additional Requirements.--In carrying out planning 
     under this section, each State shall consider, at a minimum--
       ``(1) with respect to nonmetropolitan areas, the concerns 
     of affected local officials with responsibility for 
     transportation;
       ``(2) the concerns of Indian tribal governments and Federal 
     land management agencies that have jurisdiction over land 
     within the boundaries of the State; and
       ``(3) coordination of transportation plans, the 
     transportation improvement program, and planning activities 
     with related planning activities being carried out outside of 
     metropolitan planning areas and between States.
       ``(f) Long-Range Statewide Transportation Plan.--
       ``(1) Development.--Each State shall develop a long-range 
     statewide transportation plan, with a minimum 20-year 
     forecast period for all areas of the State, that provides for 
     the development and implementation of the intermodal 
     transportation system of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--The statewide transportation 
     plan shall be developed for each metropolitan area in the 
     State in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 5303.
       ``(B) Nonmetropolitan areas.--With respect to 
     nonmetropolitan areas, the statewide transportation plan 
     shall be developed in consultation with affected 
     nonmetropolitan officials with responsibility for 
     transportation. The Secretary shall not review or approve the 
     consultation process in each State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the statewide transportation plan shall be 
     developed in consultation with the tribal government and the 
     Secretary of the Interior.
       ``(D) Consultation, comparison, and consideration.--
       ``(i) In general.--The long-range transportation plan shall 
     be developed, as appropriate, in consultation with State, 
     tribal, and local agencies responsible for land use 
     management, natural resources, environmental protection, 
     conservation, and historic preservation.
       ``(ii) Comparison and consideration.--Consultation under 
     clause (i) shall involve comparison of transportation plans 
     to State and tribal conservation plans or maps, if available, 
     and comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(3) Participation by interested parties.--
       ``(A) In general.--In developing the statewide 
     transportation plan, the State shall provide citizens, 
     affected public agencies, representatives of public 
     transportation employees, freight shippers, private providers 
     of transportation, representatives of users of public 
     transportation, representatives of users of pedestrian 
     walkways and bicycle transportation facilities, 
     representatives of the disabled, providers of freight 
     transportation services, and other interested parties with a 
     reasonable opportunity to comment on the proposed plan.
       ``(B) Methods.--In carrying out subparagraph (A), the State 
     shall, to the maximum extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford reasonable opportunity for 
     consideration of public information under subparagraph (A).
       ``(4) Mitigation activities.--
       ``(A) In general.--A long-range transportation plan shall 
     include a discussion of potential environmental mitigation 
     activities and potential areas to carry out these activities, 
     including activities that may have the greatest potential to 
     restore and maintain the environmental functions affected by 
     the plan.
       ``(B) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(5) Financial plan.--The statewide transportation plan 
     may include a financial plan that demonstrates how the 
     adopted statewide transportation plan can be implemented, 
     indicates resources from public and private sources that are 
     reasonably expected to be made available to carry out the 
     plan, and recommends any additional financing strategies for 
     needed projects and programs. The financial plan may include, 
     for illustrative purposes, additional projects that would be 
     included in the adopted statewide transportation plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(6) Selection of projects from illustrative list.--A 
     State shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan described in paragraph (5).
       ``(7) Existing system.--The statewide transportation plan 
     should include capital, operations and management strategies, 
     investments, procedures, and other measures to ensure the 
     preservation and most efficient use of the existing 
     transportation system.
       ``(8) Publication of long-range transportation plans.--Each 
     long-range transportation plan prepared by a State shall be 
     published or otherwise made available, including (to the 
     maximum extent practicable) in electronically accessible 
     formats and means, such as the World Wide Web.
       ``(g) Statewide Transportation Improvement Program.--
       ``(1) Development.--Each State shall develop a statewide 
     transportation improvement program for all areas of the 
     State. Such program shall cover a period of 4 years and be 
     updated every 4 years or more frequently if the Governor 
     elects to update more frequently.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--With respect to each 
     metropolitan area in the State, the program shall be 
     developed in cooperation with the

[[Page H7321]]

     metropolitan planning organization designated for the 
     metropolitan area under section 5303.
       ``(B) Nonmetropolitan areas.--With respect to each 
     nonmetropolitan area in the State, the program shall be 
     developed in consultation with affected nonmetropolitan local 
     officials with responsibility for transportation. The 
     Secretary shall not review or approve the specific 
     consultation process in the State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the program shall be developed in consultation 
     with the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public transportation, 
     representatives of users of pedestrian walkways and bicycle 
     transportation facilities, representatives of the disabled, 
     and other interested parties with a reasonable opportunity to 
     comment on the proposed program.
       ``(4) Included projects.--
       ``(A) In general.--A transportation improvement program 
     developed under this subsection for a State shall include 
     federally supported surface transportation expenditures 
     within the boundaries of the State.
       ``(B) Listing of projects.--An annual listing of projects 
     for which funds have been obligated in the preceding year in 
     each metropolitan planning area shall be published or 
     otherwise made available by the cooperative effort of the 
     State, transit operator, and the metropolitan planning 
     organization for public review. The listing shall be 
     consistent with the funding categories identified in each 
     metropolitan transportation improvement program.
       ``(C) Projects under chapter 2 of title 23.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually in the transportation improvement 
     program.
       ``(D) Consistency with statewide transportation plan.--Each 
     project shall be--
       ``(i) consistent with the statewide transportation plan 
     developed under this section for the State;
       ``(ii) identical to the project or phase of the project as 
     described in an approved metropolitan transportation plan; 
     and
       ``(iii) in conformance with the applicable State air 
     quality implementation plan developed under the Clean Air 
     Act, if the project is carried out in an area designated as 
     nonattainment for ozone, particulate matter, or carbon 
     monoxide under that Act.
       ``(E) Requirement of anticipated full funding.--The 
     transportation improvement program shall include a project, 
     or an identified phase of a project, only if full funding can 
     reasonably be anticipated to be available for the project 
     within the time period contemplated for completion of the 
     project.
       ``(F) Financial plan.--The transportation improvement 
     program may include a financial plan that demonstrates how 
     the approved transportation improvement program can be 
     implemented, indicates resources from public and private 
     sources that are reasonably expected to be made available to 
     carry out the transportation improvement program, and 
     recommends any additional financing strategies for needed 
     projects and programs. The financial plan may include, for 
     illustrative purposes, additional projects that would be 
     included in the adopted transportation plan if reasonable 
     additional resources beyond those identified in the financial 
     plan were available.
       ``(G) Selection of projects from illustrative list.--
       ``(i) No required selection.--Notwithstanding subparagraph 
     (F), a State shall not be required to select any project from 
     the illustrative list of additional projects included in the 
     financial plan under subparagraph (F).
       ``(ii) Required action by the secretary.--Action by the 
     Secretary shall be required for a State to select any project 
     from the illustrative list of additional projects included in 
     the financial plan under subparagraph (F) for inclusion in an 
     approved transportation improvement program.
       ``(H) Priorities.--The transportation improvement program 
     shall reflect the priorities for programming and expenditures 
     of funds, including transportation enhancement activities, 
     required by this chapter and title 23.
       ``(5) Project selection for areas of less than 50,000 
     population.--Projects carried out in areas with populations 
     of less than 50,000 individuals shall be selected, from the 
     approved transportation improvement program (excluding 
     projects carried out on the National Highway System and 
     projects carried out under the bridge program or the 
     Interstate maintenance program under title 23 or sections 
     5310, 5311, 5316, and 5317 of this title) by the State in 
     cooperation with the affected nonmetropolitan local officials 
     with responsibility for transportation. Projects carried out 
     in areas with populations of less than 50,000 individuals on 
     the National Highway System or under the bridge program or 
     the Interstate maintenance program under title 23 or sections 
     5310, 5311, 5316, and 5317 of this title shall be selected, 
     from the approved statewide transportation improvement 
     program, by the State in consultation with the affected 
     nonmetropolitan local officials with responsibility for 
     transportation.
       ``(6) Transportation improvement program approval.--Every 4 
     years, a transportation improvement program developed under 
     this subsection shall be reviewed and approved by the 
     Secretary if based on a current planning finding.
       ``(7) Planning finding.--A finding shall be made by the 
     Secretary at least every 4 years that the transportation 
     planning process through which statewide transportation plans 
     and programs are developed is consistent with this section 
     and section 5303.
       ``(8) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved 
     transportation improvement program in place of another 
     project in the program.
       ``(h) Funding.--Funds set aside pursuant to section 5305(g) 
     of this title and section 104(i) of title 23 shall be 
     available to carry out this section.
       ``(i) Treatment of Certain State Laws as Congestion 
     Management Processes.--For purposes of this section and 
     section 5303, and sections 134 and 135 of title 23, State 
     laws, rules, or regulations pertaining to congestion 
     management systems or programs may constitute the congestion 
     management process under this section and section 5303, and 
     sections 134 and 135 of title 23, if the Secretary finds that 
     the State laws, rules, or regulations are consistent with, 
     and fulfill the intent of, the purposes of this section, 
     section 5303, and sections 134 and 135 of title 23, as 
     appropriate.
       ``(j) Continuation of Current Review Practice.--Since the 
     statewide transportation plan and the transportation 
     improvement program described in this section are subject to 
     a reasonable opportunity for public comment, since individual 
     projects included in the statewide transportation plans and 
     the transportation improvement program are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning statewide transportation plans or the 
     transportation improvement program described in this section 
     have not been reviewed under such Act as of January 1, 1997, 
     any decision by the Secretary concerning a metropolitan or 
     statewide transportation plan or the transportation 
     improvement program described in this section shall not be 
     considered to be a Federal action subject to review under 
     such Act.''.
       (b) Schedule for Implementation.--The Secretary shall issue 
     guidance on a schedule for implementation of the changes made 
     by this section, taking into consideration the established 
     planning update cycle for States and metropolitan planning 
     organizations. The Secretary shall not require a State or 
     metropolitan planning organization to deviate from its 
     established planning update cycle to implement changes made 
     by this section. Beginning July 1, 2007, State or 
     metropolitan planning organization plan or program updates 
     shall reflect changes made by this section.
       (c) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5304 and 
     inserting the following:

``5304. Statewide transportation planning.''.

     SEC. 3007. PLANNING PROGRAMS.

       (a) In General.--Section 5305 is amended to read as 
     follows:

     ``Sec.  5305. Planning programs

       ``(a) State Defined.--In this section, the term `State' 
     means a State of the United States, the District of Columbia, 
     and Puerto Rico.
       ``(b) General Authority.--
       ``(1) Grants and agreements.--Under criteria established by 
     the Secretary, the Secretary may award grants to States, 
     authorities of the States, metropolitan planning 
     organizations, and local governmental authorities, and make 
     agreements with other departments, agencies, or 
     instrumentalities of the Government to--
       ``(A) develop transportation plans and programs;
       ``(B) plan, engineer, design, and evaluate a public 
     transportation project; and
       ``(C) conduct technical studies relating to public 
     transportation.
       ``(2) Eligible activities.--Activities eligible under 
     paragraph (1) include the following:
       ``(A) Studies related to management, planning, operations, 
     capital requirements, and economic feasibility.
       ``(B) Evaluating previously financed projects.
       ``(C) Peer reviews and exchanges of technical data, 
     information, assistance, and related activities in support of 
     planning and environmental analyses among metropolitan 
     planning organizations and other transportation planners.
       ``(D) Other similar and related activities preliminary to 
     and in preparation for constructing, acquiring, or improving 
     the operation of facilities and equipment.
       ``(c) Purpose.--To the extent practicable, the Secretary 
     shall ensure that amounts appropriated or made available 
     under section 5338 to carry out this section and sections 
     5303, 5304, and 5306 are used to support balanced and 
     comprehensive transportation planning that considers the 
     relationships among land use and all transportation modes, 
     without regard to the programmatic source of the planning 
     amounts.
       ``(d) Metropolitan Planning Program.--
       ``(1) Apportionment to states.--
       ``(A) In general.--The Secretary shall apportion 80 percent 
     of the amounts made available under subsection (g)(1) among 
     the States to carry out sections 5303 and 5306 in the ratio 
     that--
       ``(i) the population of urbanized areas in each State, as 
     shown by the latest available decennial census of population; 
     bears to
       ``(ii) the total population of urbanized areas in all 
     States, as shown by that census.
       ``(B) Minimum apportionment.--Notwithstanding subparagraph 
     (A), a State may not receive less than 0.5 percent of the 
     amount apportioned under this paragraph.

[[Page H7322]]

       ``(2) Allocation to mpo's.--Amounts apportioned to a State 
     under paragraph (1) shall be made available, not later than 
     30 days after the date of apportionment, to metropolitan 
     planning organizations in the State designated under this 
     section under a formula that--
       ``(A) considers population of urbanized areas;
       ``(B) provides an appropriate distribution for urbanized 
     areas to carry out the cooperative processes described in 
     this section;
       ``(C) the State develops in cooperation with the 
     metropolitan planning organizations; and
       ``(D) the Secretary approves.
       ``(3) Supplemental amounts.--
       ``(A) In general.--The Secretary shall apportion 20 percent 
     of the amounts made available under subsection (g)(1) among 
     the States to supplement allocations made under paragraph (1) 
     for metropolitan planning organizations.
       ``(B) Formula.--The Secretary shall apportion amounts 
     referred to in subparagraph (A) under a formula that reflects 
     the additional cost of carrying out planning, programming, 
     and project selection responsibilities under sections 5303 
     and 5306 in certain urbanized areas.
       ``(e) State Planning and Research Program.--
       ``(1) Apportionment to states.--
       ``(A) In general.--The Secretary shall apportion the 
     amounts made available under subsection (g)(2) among the 
     States for grants and contracts to carry out this section and 
     sections 5304, 5306, 5315, and 5322 in the ratio that--
       ``(i) the population of urbanized areas in each State, as 
     shown by the latest available decennial census; bears to
       ``(ii) the population of urbanized areas in all States, as 
     shown by that census.
       ``(B) Minimum apportionment.--Notwithstanding subparagraph 
     (A), a State may not receive less than 0.5 percent of the 
     amount apportioned under this paragraph.
       ``(2) Supplemental amounts.--A State, as the State 
     considers appropriate, may authorize part of the amount made 
     available under this subsection to be used to supplement 
     amounts made available under subsection (d).
       ``(f) Government's Share of Costs.--The Government's share 
     of the cost of an activity funded using amounts made 
     available under this section may not exceed 80 percent of the 
     cost of the activity unless the Secretary determines that it 
     is in the interests of the Government not to require a State 
     or local match.
       ``(g) Allocation of Funds.--Of the funds made available by 
     or appropriated to carry out this section under section 
     5338(c) for fiscal years 2005 through 2009--
       ``(1) 82.72 percent shall be available for the metropolitan 
     planning program under subsection (d); and
       ``(2) 17.28 percent shall be available to carry out 
     subsection (e).
       ``(h) Availability of Funds.--Funds apportioned under this 
     section to a State that have not been obligated in the 3-year 
     period beginning after the last day of the fiscal year for 
     which the funds are authorized shall be reapportioned among 
     the States.''.
       (b) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5305 and 
     inserting the following:

``5305. Planning programs.''.

     SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

       Section 5306(a) is amended by inserting ``, as determined 
     by local policies, criteria, and decisionmaking,'' after 
     ``feasible''.

     SEC. 3009. URBANIZED AREA FORMULA GRANTS.

       (a) Technical Amendments.--Section 5307 is amended--
       (1) by striking subsections (h), (j) and (k); and
       (2) by redesignating subsections (i), (l), (m), and (n) as 
     subsections (h), (i), (j), and (k), respectively.
       (b) Definitions.--
       (1) Associated capital maintenance items.--Section 
     5307(a)(1) is amended--
       (A) by striking ``means equipment, tires,'' and inserting 
     ``means--
       ``(A) equipment, tires,'';
       (B) in subparagraph (A) (as so designated) by striking the 
     period at the end and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(B) reconstruction of equipment and material, each of 
     which after reconstruction will have a fair market value of 
     at least .5 percent of the current fair market value of 
     rolling stock comparable to the rolling stock for which the 
     equipment and material will be used.''.
       (2) Designated recipient.--Section 5307(a)(2)(A) is amended 
     to read as follows:
       ``(A) an entity designated, in accordance with the planning 
     process under sections 5303, 5304, and 5306, by the chief 
     executive officer of a State, responsible local officials, 
     and publicly owned operators of public transportation, to 
     receive and apportion amounts under section 5336 that are 
     attributable to transportation management areas identified 
     under section 5303; or''.
       (c) General Authority.--Section 5307(b) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Grants.--The Secretary may make grants under this 
     section for--
       ``(A) capital projects and associated capital maintenance 
     items;
       ``(B) planning;
       ``(C) transit enhancements;
       ``(D) operating costs of equipment and facilities for use 
     in public transportation in an urbanized area with a 
     population of less than 200,000;
       ``(E) operating costs of equipment and facilities for use 
     in public transportation in a portion or portions of an 
     urbanized area with a population of at least 200,000, but not 
     more than 225,000, if--
       ``(i) the urbanized area includes parts of more than one 
     State;
       ``(ii) the portion of the urbanized area includes only one 
     State;
       ``(iii) the population of the portion of the urbanized area 
     is less than 30,000; and
       ``(iv) the grants will not be used to provide public 
     transportation outside of the portion of the urbanized area; 
     and
       ``(F) operating costs of equipment and facilities for use 
     in public transportation for local governmental authorities 
     in areas which adopted transit operating and financing plans 
     that became a part of the Houston, Texas, urbanized area as a 
     result of the 2000 decennial census of population, but lie 
     outside the service area of the principal public 
     transportation agency that serves the Houston urbanized 
     area.'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Special rule for fiscal years 2005 through 2007.--
       ``(A) Increased flexibility.--The Secretary may award 
     grants under this section, from funds made available to carry 
     out this section for each of the fiscal years 2005 through 
     2007, to finance the operating cost of equipment and 
     facilities for use in mass transportation in an urbanized 
     area with a population of at least 200,000, as determined by 
     the 2000 decennial census of population, if--
       ``(i) the urbanized area had a population of less than 
     200,000, as determined by the 1990 decennial census of 
     population;
       ``(ii) a portion of the urbanized area was a separate 
     urbanized area with a population of less than 200,000, as 
     determined by the 1990 decennial census of population;
       ``(iii) the area was not designated as an urbanized area, 
     as determined by the 1990 decennial census of population; or
       ``(iv) a portion of the area was not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and received assistance under section 5311 in fiscal year 
     2002.
       ``(B) Maximum amounts in fiscal year 2005.--In fiscal year 
     2005--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     the amount apportioned in fiscal year 2002 to the urbanized 
     area with a population of less than 200,000, as determined in 
     the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than the amount 
     apportioned to the urbanized area under this section for 
     fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than the amount the portion of the area 
     received under section 5311 for fiscal year 2002.
       ``(C) Maximum amounts in fiscal year 2006.--In fiscal year 
     2006--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     50 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 50 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less 50 percent of the amount the portion of the 
     area received under section 5311 for fiscal year 2002.
       ``(D) Maximum amounts in fiscal year 2007.--In fiscal year 
     2007--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     25 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 25 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than 25 percent of the amount the portion of 
     the area received under section 5311 in fiscal year 2002.''; 
     and
       (3) by striking paragraph (4).
       (d) Grant Recipient Requirements.--Section 5307(d)(1) is 
     amended--
       (1) in subparagraph (A) by inserting ``, including safety 
     and security aspects of the program'' after ``program'';
       (2) in subparagraph (E)--
       (A) by striking ``and'' at the end of clause (ii);
       (B) by inserting ``and'' at the end of clause (iii); and
       (C) by adding at the end the following:
       ``(iv) will comply with sections 5323 and 5325;'';
       (3) in subparagraph (H) by striking ``sections 5301(a) and 
     (d), 5303-5306, and 5310(a)-(d) of this title'' and inserting 
     ``section 5301(a), section 5301(d), and sections 5303 through 
     5306'';
       (4) in subparagraph (I) by striking ``and'' at the end;
       (5) by adding at the end the following:
       ``(K) in the case of a recipient for an urbanized area with 
     a population of at least 200,000--
       ``(i) will expend not less than 1 percent of the amount the 
     recipient receives each fiscal year under this section for 
     transit enhancements, as defined in section 5302(a); and

[[Page H7323]]

       ``(ii) will submit an annual report listing projects 
     carried out in the preceding fiscal year with those funds; 
     and''.
       (e) Government's Share of Costs.--Section 5307(e) is 
     amended to read as follows:
       ``(e) Government's Share of Costs.--
       ``(1) Capital projects.--A grant for a capital project 
     (including associated capital maintenance items) under this 
     section shall be for 80 percent of the net project cost of 
     the project. The recipient may provide additional local 
     matching amounts.
       ``(2) Operating expenses.--A grant for operating expenses 
     under this section may not exceed 50 percent of the net 
     project cost of the project.
       ``(3) Remaining costs.--Subject to paragraph (4), the 
     remainder of the net project cost shall be provided--
       ``(A) in cash from non-Government sources other than 
     revenues from providing public transportation services;
       ``(B) from revenues derived from the sale of advertising 
     and concessions;
       ``(C) from an undistributed cash surplus, a replacement or 
     depreciation cash fund or reserve, or new capital; and
       ``(D) from amounts received under a service agreement with 
     a State or local social service agency or private social 
     service organization.
       ``(4) Use of certain funds.--The prohibitions on the use of 
     funds for matching requirements under section 
     403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
     603(a)(5)(C)(vii)) shall not apply to the remainder.''.
       (f) Undertaking Projects in Advance.--Section 5307(g) is 
     amended by striking paragraph (4).
       (g) Relationship to Other Laws.--Section 5307(k) (as 
     redesignated by subsection (a)(2) of this section) is amended 
     to read as follows:
       ``(k) Relationship to Other Laws.--
       ``(1) Applicable provisions.--Sections 5301, 5302, 5303, 
     5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 
     5330, 5331, 5332, 5333, and 5335 apply to this section and to 
     any grant made under this section.
       ``(2) Inapplicable provisions.--
       ``(A) In general.--Except as provided by this section, no 
     other provision of this chapter applies to this section or to 
     a grant made under this section.
       ``(B) Title 5.--The provision of assistance under this 
     chapter shall not be construed as bringing within the 
     application of chapter 15 of title 5 any nonsupervisory 
     employee of a public transportation system (or any other 
     agency or entity performing related functions) to which such 
     chapter is otherwise inapplicable.''.
       (h) Treatment.--Section 5307 is amended by adding at the 
     end the following:
       ``(l) Treatment.--For the purposes of this section, the 
     United States Virgin Islands shall be treated as an urbanized 
     area, as defined in section 5302.''.
       (i) Contracted Paratransit Pilot.--
       (1) In general.--Notwithstanding section 5302(a)(1)(I) of 
     title 49, United States Code, for fiscal years 2005 through 
     2009, a recipient of assistance under section 5307 of such 
     title in urbanized areas with a population of 558,329 or 
     747,003 according to the 2000 decennial census of population 
     may use not more than 20 percent of such recipient's annual 
     formula apportionment under section 5307 of such title for 
     the provision of nonfixed route paratransit services in 
     accordance with section 223 of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12143), but only if the 
     grant recipient is in compliance with applicable requirements 
     of that Act, including both fixed route and demand responsive 
     service and the service is acquired by contract.
       (2) Report.--Not later than January 1, 2009, the Secretary 
     shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a report on the implementation of this subsection and 
     any recommendations of the Secretary regarding the 
     application of this subsection.

     SEC. 3010. CLEAN FUELS GRANT PROGRAM.

       (a) In General.--Section 5308 is amended to read as 
     follows:

     ``Sec. 5308. Clean fuels grant program

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Clean fuel bus.--The term `clean fuel bus' means a 
     passenger vehicle used to provide public transportation 
     that--
       ``(A) is powered by--
       ``(i) compressed natural gas;
       ``(ii) liquefied natural gas;
       ``(iii) biodiesel fuels;
       ``(iv) batteries;
       ``(v) alcohol-based fuels;
       ``(vi) hybrid electric;
       ``(vii) fuel cell;
       ``(viii) clean diesel, to the extent allowed under this 
     section; or
       ``(ix) other low or zero emissions technology; and
       ``(B) the Administrator of the Environmental Protection 
     Agency has certified sufficiently reduces harmful emissions.
       ``(2) Eligible project.--The term `eligible project'--
       ``(A) means a project in a nonattainment or maintenance 
     area described in paragraph (4)(A) for--
       ``(i) purchasing or leasing clean fuel buses, including 
     buses that employ a lightweight composite primary structure;
       ``(ii) constructing or leasing clean fuel buses or 
     electrical recharging facilities and related equipment for 
     such buses; or
       ``(iii) constructing new or improving existing public 
     transportation facilities to accommodate clean fuel buses; 
     and
       ``(B) at the discretion of the Secretary, may include a 
     project located in a nonattainment or maintenance area 
     described in paragraph (4)(A) relating to clean fuel, 
     biodiesel, hybrid electric, or zero emissions technology 
     buses that exhibit equivalent or superior emissions 
     reductions to existing clean fuel or hybrid electric 
     technologies.
       ``(3) Maintenance area.--The term `maintenance area' has 
     the meaning such term has under section 101 of title 23.
       ``(4) Recipient.--
       ``(A) In general.--The term `recipient' means a designated 
     recipient (as defined in section 5307(a)(2)) for an area 
     that, and a recipient for an urbanized area with a population 
     of less than 200,000 that--
       ``(i) is designated as a nonattainment area for ozone or 
     carbon monoxide under section 107(d) of the Clean Air Act (42 
     U.S.C. 7407(d)); or
       ``(ii) is a maintenance area for ozone or carbon monoxide.
       ``(B) Smaller urbanized areas.--In the case of an urbanized 
     area with a population of less than 200,000, the State in 
     which the area is located shall act as the recipient for the 
     area under this section.
       ``(b) Authority.--The Secretary shall make grants in 
     accordance with this section to recipients to finance 
     eligible projects.
       ``(c) Clean Diesel Buses.--Not more than 25 percent of the 
     amount made available by or appropriated under section 5338 
     in each fiscal year to carry out this section may be made 
     available to fund clean diesel buses.
       ``(d) Grant Requirements.--
       ``(1) In general.--A grant under this section shall be 
     subject to the requirements of section 5307.
       ``(2) Government's share of costs for certain projects.--
     Section 5323(i) applies to projects carried out under this 
     section.
       ``(e) Availability of Funds.--Any amount made available or 
     appropriated under this section--
       ``(1) shall remain available to a project for 2 years after 
     the fiscal year for which the amount is made available or 
     appropriated; and
       ``(2) that remains unobligated at the end of the period 
     described in paragraph (1) shall be added to the amount made 
     available in the following fiscal year.''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5308 and 
     inserting the following:

``5308. Clean fuels grant program.''.

     SEC. 3011. CAPITAL INVESTMENT GRANTS.

       (a) In General.--Section 5309 is amended to read as 
     follows:

     ``Sec. 5309. Capital investment grants

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Alternatives analysis.--The term `alternatives 
     analysis' means a study conducted as part of the 
     transportation planning process required under sections 5303 
     and 5304, which includes--
       ``(A) an assessment of a wide range of public 
     transportation alternatives designed to address a 
     transportation problem in a corridor or subarea;
       ``(B) sufficient information to enable the Secretary to 
     make the findings of project justification and local 
     financial commitment required under this section;
       ``(C) the selection of a locally preferred alternative; and
       ``(D) the adoption of the locally preferred alternative as 
     part of the long-range transportation plan required under 
     section 5303.
       ``(2) Major new fixed guideway capital project.--The term 
     `major new fixed guideway capital project' means a new fixed 
     guideway capital project for which the Federal assistance 
     provided or to be provided under this section is $75,000,000 
     or more.
       ``(3) New fixed guideway capital project.--The term `new 
     fixed guideway capital project' means a minimum operable 
     segment of a capital project for a new fixed guideway system 
     or extension to an existing fixed guideway system.
       ``(b) General Authority.--The Secretary may make grants 
     under this section to assist State and local governmental 
     authorities in financing--
       ``(1) new fixed guideway capital projects under subsections 
     (d) and (e), including the acquisition of real property, the 
     initial acquisition of rolling stock for the systems, the 
     acquisition of rights of way, and relocation, for fixed 
     guideway corridor development for projects in the advanced 
     stages of alternatives analysis or preliminary engineering;
       ``(2) capital projects to modernize existing fixed guideway 
     systems;
       ``(3) capital projects to replace, rehabilitate, and 
     purchase buses and related equipment 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
       ``(4) the development of corridors to support new fixed 
     guideway capital projects under subsections (d) and (e), 
     including protecting rights of way through acquisition, 
     construction of dedicated bus and high occupancy vehicle 
     lanes and park and ride lots, and other nonvehicular capital 
     improvements that the Secretary may decide would result in 
     increased public transportation usage in the corridor.
       ``(c) Grant Requirements.--
       ``(1) In general.--The Secretary may not approve a grant 
     for a project under this section unless the Secretary 
     determines that--
       ``(A) the project is part of an approved transportation 
     plan and program of projects required under sections 5303, 
     5304, and 5306; and
       ``(B) the applicant has, or will have--
       ``(i) the legal, financial, and technical capacity to carry 
     out the project, including safety and security aspects of the 
     project;
       ``(ii) satisfactory continuing control over the use of the 
     equipment or facilities; and

[[Page H7324]]

       ``(iii) the capability and willingness to maintain the 
     equipment or facilities.
       ``(2) Certification.--An applicant that has submitted the 
     certifications required under subparagraphs (A), (B), (C), 
     and (H) of section 5307(d)(1) shall be deemed to have 
     provided sufficient information upon which the Secretary may 
     make the determinations required under this subsection.
       ``(3) Grantee requirements.--The Secretary shall require 
     that any grant awarded under this section to a recipient be 
     subject to all terms, conditions, requirements, and 
     provisions that the Secretary determines to be necessary or 
     appropriate for the purposes of this section, including 
     requirements for the disposition of net increases in the 
     value of real property resulting from the project assisted 
     under this section.
       ``(d) Major Capital Investment Grants of $75,000,000 or 
     More.--
       ``(1) Full funding grant agreement.--
       ``(A) In general.--A major new fixed guideway capital 
     project shall be carried out through a full funding grant 
     agreement.
       ``(B) Criteria.--The Secretary shall enter into a full 
     funding grant agreement, based on the evaluations and ratings 
     required under this subsection, with each grantee receiving 
     assistance for a major new fixed guideway capital project 
     that--
       ``(i) is authorized for final design and construction; and
       ``(ii) has been rated as medium, medium-high, or high, in 
     accordance with paragraph (5)(B).
       ``(2) Approval of grants.--The Secretary may approve a 
     grant under this section for a major new fixed guideway 
     capital project only if the Secretary, based upon evaluations 
     and considerations set forth in paragraph (3), determines 
     that the project is--
       ``(A) based on the results of an alternatives analysis and 
     preliminary engineering;
       ``(B) justified based on a comprehensive review of its 
     mobility improvements, environmental benefits, cost 
     effectiveness, operating efficiencies, economic development 
     effects, and public transportation supportive land use 
     policies and future patterns; and
       ``(C) supported by an acceptable degree of local financial 
     commitment (including evidence of stable and dependable 
     financing sources) to construct, maintain, and operate the 
     system or extension, and maintain and operate the entire 
     public transportation system without requiring a reduction in 
     existing public transportation services or level of service 
     to operate the proposed project.
       ``(3) Evaluation of project justification.--In making the 
     determinations under paragraph (2)(B) for a major capital 
     investment grant, the Secretary shall analyze, evaluate, and 
     consider--
       ``(A) the results of the alternatives analysis and 
     preliminary engineering for the proposed project;
       ``(B) the reliability of the forecasting methods used to 
     estimate costs and utilization made by the recipient and the 
     contractors to the recipient;
       ``(C) the direct and indirect costs of relevant 
     alternatives;
       ``(D) factors such as--
       ``(i) congestion relief;
       ``(ii) improved mobility;
       ``(iii) air pollution;
       ``(iv) noise pollution;
       ``(v) energy consumption; and
       ``(vi) all associated ancillary and mitigation costs 
     necessary to carry out each alternative analyzed;
       ``(E) reductions in local infrastructure costs and other 
     benefits achieved through compact land use development, such 
     as positive impacts on the capacity, utilization, or 
     longevity of other surface transportation assets and 
     facilities;
       ``(F) the cost of suburban sprawl;
       ``(G) the degree to which the project increases the 
     mobility of the public transportation dependent population or 
     promotes economic development;
       ``(H) population density and current transit ridership in 
     the transportation corridor;
       ``(I) the technical capability of the grant recipient to 
     construct the project;
       ``(J) any adjustment to the project justification necessary 
     to reflect differences in local land, construction, and 
     operating costs; and
       ``(K) other factors that the Secretary determines to be 
     appropriate to carry out this subsection.
       ``(4) Evaluation of local financial commitment.--
       ``(A) In general.--In evaluating a project under paragraph 
     (2)(C), the Secretary shall require that--
       ``(i) the proposed project plan provides for the 
     availability of contingency amounts that the Secretary 
     determines to be reasonable to cover unanticipated cost 
     increases;
       ``(ii) each proposed local source of capital and operating 
     financing is stable, reliable, and available within the 
     proposed project timetable; and
       ``(iii) local resources are available to recapitalize and 
     operate the overall proposed public transportation system, 
     including essential feeder bus and other services necessary 
     to achieve the projected ridership levels without requiring a 
     reduction in existing public transportation services or level 
     of service to operate the proposed project.
       ``(B) Evaluation criteria.--In assessing the stability, 
     reliability, and availability of proposed sources of local 
     financing under paragraph (2)(C), the Secretary shall 
     consider--
       ``(i) the reliability of the forecasting methods used to 
     estimate costs and utilization made by the recipient and the 
     contractors to the recipient;
       ``(ii) existing grant commitments;
       ``(iii) the degree to which financing sources are dedicated 
     to the proposed purposes;
       ``(iv) any debt obligation that exists, or is proposed by 
     the recipient, for the proposed project or other public 
     transportation purpose; and
       ``(v) the extent to which the project has a local financial 
     commitment that exceeds the required non-Federal share of the 
     cost of the project.
       ``(C) Consideration of fiscal capacity of state and local 
     governments.--If the Secretary gives priority to financing 
     projects under this subsection that include more than the 
     non-Federal share required under subsection (h), the 
     Secretary shall give equal consideration to differences in 
     the fiscal capacity of State and local governments.
       ``(5) Project advancement and ratings.--
       ``(A) Project advancement.--A proposed project under this 
     subsection shall not advance from alternatives analysis to 
     preliminary engineering or from preliminary engineering to 
     final design and construction unless the Secretary determines 
     that the project meets the requirements of this section and 
     there is a reasonable likelihood that the project will 
     continue to meet such requirements.
       ``(B) Ratings.--In making a determination under 
     subparagraph (A), the Secretary shall evaluate and rate the 
     project on a 5-point scale (high, medium-high, medium, 
     medium-low, or low) based on the results of the alternatives 
     analysis, the project justification criteria, and the degree 
     of local financial commitment, as required under this 
     subsection. In rating the projects, the Secretary shall 
     provide, in addition to the overall project rating, 
     individual ratings for each of the criteria established by 
     regulation.
       ``(6) Policy guidance.--
       ``(A) Publication.--The Secretary shall publish policy 
     guidance regarding the new fixed guideway capital project 
     review and evaluation process and criteria--
       ``(i) not later than 120 days after the date of enactment 
     of the Federal Public Transportation Act of 2005; and
       ``(ii) each time significant changes are made by the 
     Secretary to the process and criteria, but not less 
     frequently than once every 2 years.
       ``(B) Public comment and response.--The Secretary shall--
       ``(i) invite public comment to the policy guidance 
     published under subparagraph (A); and
       ``(ii) publish a response to the comments received under 
     clause (i).
       ``(e) Capital Investment Grants Less Than $75,000,000.--
       ``(1) In general.--
       ``(A) Applicability of requirements.--Except as provided by 
     subparagraph (B), a new fixed guideway capital project shall 
     be subject to the requirements of this subsection if the 
     Federal assistance provided or to be provided under this 
     section for the project is less than $75,000,000 and the 
     total estimated net capital cost of the project is less than 
     $250,000,000.
       ``(B) Projects receiving less than $25,000,000 in federal 
     assistance.--If the assistance provided under this section 
     with respect to a new fixed guideway capital project is less 
     than $25,000,000, the requirements of this subsection shall 
     not apply to the project until such date as the final 
     regulation to be issued under paragraph (9) takes effect.
       ``(2) Selection criteria.--The Secretary may provide 
     Federal assistance under this subsection with respect to a 
     proposed project only if the Secretary finds that the project 
     is--
       ``(A) based on the results of planning and alternatives 
     analysis;
       ``(B) justified based on a review of its public 
     transportation supportive land use policies, cost 
     effectiveness, and effect on local economic development; and
       ``(C) supported by an acceptable degree of local financial 
     commitment.
       ``(3) Planning and alternatives.--In evaluating a project 
     under paragraph (2)(A), the Secretary shall analyze and 
     consider the results of planning and alternatives analysis 
     for the project.
       ``(4) Project justification.--For purposes of making the 
     finding under paragraph (2)(B), the Secretary shall--
       ``(A) determine the degree to which the project is 
     consistent with local land use policies and is likely to 
     achieve local developmental goals;
       ``(B) determine the cost effectiveness of the project at 
     the time of the initiation of revenue service;
       ``(C) determine the degree to which the project will have a 
     positive effect on local economic development;
       ``(D) consider the reliability of the forecasting methods 
     used to estimate costs and ridership associated with the 
     project; and
       ``(E) consider other factors that the Secretary determines 
     appropriate to carry out this subsection.
       ``(5) Local financial commitment.--
       ``(A) In general.--For purposes of paragraph (2)(C), the 
     Secretary shall require that each proposed local source of 
     capital and operating financing is stable, reliable, and 
     available within the proposed project timetable.
       ``(B) Consideration of fiscal capacity of state and local 
     governments.--If the Secretary gives priority to financing 
     projects under this subsection that include more than the 
     non-Federal share required under subsection (h), the 
     Secretary shall give equal consideration to differences in 
     the fiscal capacity of State and local governments.
       ``(6) Advancement of project to development and 
     construction.--
       ``(A) General rule.--A proposed project under this 
     subsection may advance from planning and alternatives 
     analysis to project development and construction only if the 
     Secretary finds that the project meets the requirements of 
     this subsection and there is a reasonable likelihood that the 
     project will continue to meet such requirements.
       ``(B) Evaluation.--In making the findings under 
     subparagraph (A), the Secretary shall

[[Page H7325]]

     evaluate and rate the project as high, medium-high, medium, 
     medium-low, or low based on the results of the analysis of 
     the project justification criteria and the degree of local 
     financial commitment, as required by this subsection.
       ``(7) Contents of project construction grant agreement.--A 
     project construction grant agreement under this subsection 
     shall specify the scope of the project to be constructed, the 
     estimated net project cost of the project, the schedule 
     under which the project shall be constructed, the maximum 
     amount of funding to be obtained under this subsection, 
     the proposed schedule for obligation of future Federal 
     grants, and the sources of funding from other than the 
     Government. The agreement may include a commitment on the 
     part of the Secretary to provide funding for the project 
     in future fiscal years.
       ``(8) Limitation on entry into construction grant 
     agreement.--The Secretary may enter into a project 
     construction grant agreement for a project under this 
     subsection only if the project is authorized for construction 
     and has been rated as high, medium-high, or medium under this 
     subsection.
       ``(9) Regulations.--Not later than 240 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2005, the Secretary shall issue regulations establishing an 
     evaluation and rating process for proposed projects under 
     this subsection that is based on the results of project 
     justification and local financial commitment, as required 
     under this subsection.
       ``(10) Fixed guideway capital project.--In this subsection, 
     the term `fixed guideway capital project' includes a 
     corridor-based bus capital project if--
       ``(A) a substantial portion of the project operates in a 
     separate right-of-way dedicated for public transit use during 
     peak hour operations; or
       ``(B) the project represents a substantial investment in a 
     defined corridor as demonstrated by features such as park-
     and-ride lots, transit stations, bus arrival and departure 
     signage, intelligent transportation systems technology, 
     traffic signal priority, off-board fare collection, advanced 
     bus technology, and other features that support the long-term 
     corridor investment.
       ``(11) Impact report.--
       ``(A) In general.--Not later than 120 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2005, the Federal Transit Administration shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives a report on the methodology 
     to be used in evaluating the land use and economic 
     development impacts of non-fixed guideway or partial fixed 
     guideway projects.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall address any qualitative and quantitative 
     differences between fixed guideway and non-fixed guideway 
     projects with respect to land use and economic development 
     impacts.
       ``(f) Previously Issued Letter of Intent or Full Funding 
     Grant Agreement.--Subsections (d) and (e) do not apply to 
     projects for which the Secretary has issued a letter of 
     intent or entered into a full funding grant agreement before 
     the date of enactment of the Federal Public Transportation 
     Act of 2005. Subsection (e) also does not apply to projects 
     for which the Secretary has received an application for final 
     design before such date of enactment.
       ``(g) Letters of Intent, Full Funding Grant Agreements, and 
     Early Systems Work Agreements.--
       ``(1) Letters of intent.--
       ``(A) Amounts intended to be obligated.--The Secretary may 
     issue a letter of intent to an applicant announcing an 
     intention to obligate, for a capital 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. When a letter is issued for fixed guideway projects, 
     the amount shall be sufficient to complete at least an 
     operable segment.
       ``(B) Treatment.--The issuance of a letter under 
     subparagraph (A) is deemed not to be an obligation under 
     sections 1108(c), 1108(d), 1501, and 1502(a) of title 31 or 
     an administrative commitment.
       ``(2) Full funding grant agreements.--
       ``(A) Terms.--The Secretary may make a full funding grant 
     agreement with an applicant. The agreement shall--
       ``(i) establish the terms of participation by the 
     Government in a project under this section;
       ``(ii) establish the maximum amount of Government financial 
     assistance for the project;
       ``(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) Special financial rules.--
       ``(i) In general.--A full funding grant agreement under 
     this paragraph obligates an amount of available budget 
     authority specified in law and may include a commitment, 
     contingent on amounts to be specified in law in advance for 
     commitments under this paragraph, to obligate an additional 
     amount from future available budget authority specified in 
     law.
       ``(ii) Statement of contingent commitment.--The agreement 
     shall state that the contingent commitment is not an 
     obligation of the Government.
       ``(iii) Interest and other financing costs.--Interest and 
     other financing costs of efficiently carrying out a part of 
     the project within a reasonable time are a cost of carrying 
     out the project under a full funding grant agreement, except 
     that eligible costs may not be more than the cost of the most 
     favorable financing terms reasonably available for the 
     project at the time of borrowing. The applicant shall 
     certify, in a way satisfactory to the Secretary, that the 
     applicant has shown reasonable diligence in seeking the most 
     favorable financing terms.
       ``(iv) Completion of operable segment.--The amount 
     stipulated in an agreement under this paragraph for a fixed 
     guideway project shall be sufficient to complete at least an 
     operable segment.
       ``(C) Before and after study.--
       ``(i) In general.--A full funding grant agreement under 
     this paragraph shall require the applicant to conduct a study 
     that--

       ``(I) describes and analyzes the impacts of the new fixed 
     guideway capital project on transit services and transit 
     ridership;
       ``(II) evaluates the consistency of predicted and actual 
     project characteristics and performance; and

       ``(III) identifies sources of differences between predicted 
     and actual outcomes.

       ``(ii) Information collection and analysis plan.--

       ``(I) Submission of plan.--Applicants seeking an agreement 
     under this paragraph shall submit a complete plan for the 
     collection and analysis of information to identify the 
     impacts of the new fixed guideway capital project and the 
     accuracy of the forecasts prepared during the development of 
     the project. Preparation of this plan shall be included in 
     the full funding grant agreement as an eligible activity.
       ``(II) Contents of plan.--The plan submitted under 
     subclause (I) shall provide for--

       ``(aa) the collection of data on the current transit system 
     regarding transit service levels and ridership patterns, 
     including origins and destinations, access modes, trip 
     purposes, and rider characteristics;
       ``(bb) documentation of the predicted scope, service 
     levels, capital costs, operating costs, and ridership of the 
     project;
       ``(cc) collection of data on the transit system 2 years 
     after the opening of the new fixed guideway capital project, 
     including analogous information on transit service levels and 
     ridership patterns and information on the as-built scope and 
     capital costs of the project; and
       ``(dd) analysis of the consistency of predicted project 
     characteristics with the after data.
       ``(D) Collection of data on current system.--To be eligible 
     for a full funding grant agreement under this paragraph, 
     recipients shall have collected data on the current system, 
     according to the plan required, before the beginning of 
     construction of the proposed new start project. Collection of 
     this data shall be included in the full funding grant 
     agreement as an eligible activity.
       ``(3) Early system work agreements.--
       ``(A) Conditions.--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) Contents.--
       ``(i) In general.--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.
       ``(ii) Period covered.--A work agreement under this 
     paragraph shall cover the period of time the Secretary 
     considers appropriate. The period may extend beyond the 
     period of current authorization.
       ``(iii) Interest and other financing costs.--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.
       ``(iv) Failure to carry out project.--If an applicant does 
     not carry out the project for reasons within the control of 
     the applicant, the applicant shall repay all Government 
     payments made under the work agreement plus reasonable 
     interest and penalty charges the Secretary establishes in the 
     agreement.
       ``(4) Limitation on amounts.--
       ``(A) Major capital investment grants contingent commitment 
     authority.--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 subsection for major new fixed guideway 
     capital projects may be not more than the greater of the 
     amount authorized under sections 5338(a)(3) and 5338(c) for 
     such projects or an amount equivalent to the last 3 fiscal 
     years of funding allocated under subsections (m)(1)(A) and 
     (m)(2)(A)(ii) for such projects, less an amount the Secretary 
     reasonably estimates is necessary for grants under this 
     section for those of such projects that are not covered by a 
     letter or agreement. The total amount covered by new letters 
     and contingent commitments included in full funding grant 
     agreements and early systems work agreements for such 
     projects may be not more than a limitation specified in law.
       ``(B) Other contingent commitment authority.--The total 
     estimated amount of future obligations of the Government and 
     contingent commitments to incur obligations covered by all

[[Page H7326]]

     project construction grant agreements and early system work 
     agreements under this subsection for small capital projects 
     described in subsection (e) may be not more than the greater 
     of the amount allocated under subsection (m)(2)(A)(i) for 
     such projects or an amount equivalent to the last fiscal year 
     of funding allocated under such subsection for such projects, 
     less an amount the Secretary reasonably estimates is 
     necessary for grants under this section for those of such 
     projects that are not covered by an agreement. The total 
     amount covered by new contingent commitments included in 
     project construction grant agreements and early systems work 
     agreements for such projects may be not more than a 
     limitation specified in law.
       ``(C) Inclusion of certain commitments.--Future obligations 
     of the Government and contingent commitments made against the 
     contingent commitment authority under section 3032(g)(2) of 
     the Intermodal Surface Transportation Efficiency Act of 1991 
     (106 Stat. 2125) for the San Francisco BART to the Airport 
     project for fiscal years 2002, 2003, 2004, 2005, and 2006 
     shall be charged against section 3032(g)(2) of that Act.
       ``(D) Appropriation required.--An obligation may be made 
     under this subsection only when amounts are appropriated for 
     the obligation.
       ``(5) Notification of congress.--At least 60 days before 
     issuing a letter of intent or entering into a full funding 
     grant agreement or project construction grant agreement under 
     this section, the Secretary shall notify, in writing, the 
     Committees on Transportation and Infrastructure and 
     Appropriations of the House of Representatives and the 
     Committees on Banking, Housing, and Urban Affairs and 
     Appropriations of the Senate 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.
       ``(h) Government's Share of Net Project Cost.--
       ``(1) In general.--Based on engineering studies, studies of 
     economic feasibility, and information on the expected use of 
     equipment or facilities, the Secretary shall estimate the net 
     project cost. A grant for the project shall be for 80 percent 
     of the net capital project cost, unless the grant recipient 
     requests a lower grant percentage.
       ``(2) Adjustment for completion under budget.--The 
     Secretary may adjust the final net project cost of a new 
     fixed guideway capital project evaluated under subsections 
     (d) and (e) to include the cost of eligible activities not 
     included in the originally defined project if the Secretary 
     determines that the originally defined project has been 
     completed at a cost that is significantly below the original 
     estimate.
       ``(3) Maximum government share.--The Secretary may provide 
     a higher grant percentage than requested by the grant 
     recipient if--
       ``(A) the Secretary determines that the net project cost of 
     the project is not more than 10 percent higher than the net 
     project cost estimated at the time the project was approved 
     for advancement into preliminary engineering; and
       ``(B) the ridership estimated for the project is not less 
     than 90 percent of the ridership estimated for the project at 
     the time the project was approved for advancement into 
     preliminary engineering.
       ``(4) Remainder of net project cost.--The remainder of net 
     project costs shall be provided from an undistributed cash 
     surplus, a replacement or depreciation cash fund or reserve, 
     or new capital.
       ``(5) Limitation on statutory construction.--Nothing in 
     this section, including paragraph (1) and subsections 
     (d)(4)(B)(v) and (e)(5), shall be construed as authorizing 
     the Secretary to require a non-Federal financial commitment 
     for a project that is more than 20 percent of the net capital 
     project cost.
       ``(6) Special rule for rolling stock costs.--In addition to 
     amounts allowed pursuant to paragraph (1), a planned 
     extension to a fixed guideway system may include the cost of 
     rolling stock previously purchased if the applicant satisfies 
     the Secretary that only amounts other than amounts of the 
     Government were used and that the purchase was made for use 
     on the extension. A refund or reduction of the remainder may 
     be made only if a refund of a proportional amount of the 
     grant of the Government is made at the same time.
       ``(7) Limitation on applicability.--This subsection does 
     not apply to projects for which the Secretary has entered 
     into a full funding grant agreement before the date of 
     enactment of the Federal Public Transportation Act of 2005.
       ``(i) Undertaking Projects in Advance.--
       ``(1) In general.--The Secretary may pay the Government's 
     share of the net capital project cost to a State or local 
     governmental authority that carries out any part of a project 
     described in this section without the aid of amounts of the 
     Government and according to all applicable procedures and 
     requirements if--
       ``(A) the State or local governmental authority applies for 
     the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out the part of the project, the 
     Secretary approves the plans and specifications for the part 
     in the same way as other projects under this section.
       ``(2) Financing costs.--
       ``(A) In general.--The cost of carrying out part of a 
     project includes the amount of interest earned and payable on 
     bonds issued by the State or local governmental authority to 
     the extent proceeds of the bonds are expended in carrying out 
     the part.
       ``(B) Limitation on amount of interest.--The amount of 
     interest under this paragraph may not be more than the most 
     favorable interest terms reasonably available for the project 
     at the time of borrowing.
       ``(C) Certification.--The applicant shall certify, in a 
     manner satisfactory to the Secretary, that the applicant has 
     shown reasonable diligence in seeking the most favorable 
     financial terms.
       ``(j) Availability of Amounts.--
       ``(1) In general.--An amount made available or appropriated 
     under section 5338(a)(3)(C)(iii), 5338(a)(3)(C)(iv), 
     5338(b)(2)(E), or 5338(c) for replacement, rehabilitation, 
     and purchase of buses and related equipment and construction 
     of bus-related facilities or for new fixed guideway capital 
     projects shall remain available for 3 fiscal years, including 
     the fiscal year in which the amount is made available or 
     appropriated. Any of such amounts that are unobligated at the 
     end of the 3-fiscal-year period may be used by the Secretary 
     for any purpose under this section.
       ``(2) Use of deobligated amounts.--An amount available 
     under this section that is deobligated may be used for any 
     purpose under this section.
       ``(k) Reports on New Starts.--
       ``(1) Annual report on funding recommendations.--Not later 
     than the first Monday in February of each year, the Secretary 
     shall submit to the Committees on Transportation and 
     Infrastructure and Appropriations of the House of 
     Representatives and the Committees on Banking, Housing, and 
     Urban Affairs and Appropriations of the Senate a report that 
     includes--
       ``(A) a proposal of allocations of amounts to be available 
     to finance grants for new fixed guideway capital projects 
     among applicants for these amounts;
       ``(B) evaluations and ratings, as required under 
     subsections (d) and (e), for each such project that is 
     authorized by the Federal Public Transportation Act of 2005; 
     and
       ``(C) recommendations of such projects for funding based on 
     the evaluations and ratings and on existing commitments and 
     anticipated funding levels for the next 3 fiscal years based 
     on information currently available to the Secretary.
       ``(2) Annual gao review.--The Comptroller General shall--
       ``(A) conduct an annual review of--
       ``(i) the processes and procedures for evaluating, rating, 
     and recommending new fixed guideway capital projects; and
       ``(ii) the Secretary's implementation of such processes and 
     procedures; and
       ``(B) report to Congress on the results of such review by 
     May 31 of each year.
       ``(l) Other Reports.--
       ``(1) Before and after study reports.--Not later than the 
     first Monday of August of each year, the Secretary shall 
     submit to the committees referred to in subsection (k)(1) a 
     report containing a summary of the results of the studies 
     conducted under subsection (g)(2)(C).
       ``(2) Contractor performance assessment report.--
       ``(A) In general.--Not later than 180 days after the 
     enactment of the Federal Public Transportation Act of 2005, 
     and each year thereafter, the Secretary shall submit to the 
     committees referred to in subsection (k)(1) a report 
     analyzing the consistency and accuracy of cost and ridership 
     estimates made by each contractor to public transportation 
     agencies developing new fixed guideway capital projects.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall compare the cost and ridership estimates made at 
     the time projects are approved for entrance into preliminary 
     engineering with--
       ``(i) estimates made at the time projects are approved for 
     entrance into final design;
       ``(ii) costs and ridership when the project commences 
     revenue operation; and
       ``(iii) costs and ridership when the project has been in 
     operation for 2 years.
       ``(C) Considerations.--In making comparisons under 
     subparagraph (B), the Secretary shall consider factors having 
     an impact on costs and ridership not under the control of the 
     contractor. The Secretary shall also consider the role taken 
     by each contractor in the development of the project.
       ``(3) Contractor performance incentive report.--Not later 
     than 180 days after the enactment of the Federal Public 
     Transportation Act of 2005, the Secretary shall submit to the 
     committees referred to in subsection (k)(1) a report on the 
     suitability of allowing contractors to public transportation 
     agencies that undertake new fixed guideway capital projects 
     under this section to receive performance incentive awards if 
     a project is completed for less than the original estimated 
     cost.
       ``(m) Allocating Amounts.--
       ``(1) Fiscal year 2005.--Of the amounts made available or 
     appropriated for fiscal year 2005 under section 5338(a)(3)--
       ``(A) $1,437,829,600 shall be allocated for new fixed 
     capital projects under subsection (d);
       ``(B) $1,204,684,800 shall be allocated for capital 
     projects for fixed guideway modernization; and
       ``(C) $669,600,000 shall be allocated for capital projects 
     for buses and bus-related equipment and facilities.
       ``(2) Fiscal years 2006 through 2009.--The amounts made 
     available or appropriated for fiscal years 2006 through 2009 
     under sections 5338(b) and 5338(c) shall be allocated as 
     follows:
       ``(A) Major capital projects.--Of the amounts appropriated 
     under section 5338(c) for major capital projects--
       ``(i) $200,000,000 for each of fiscal years 2007 through 
     2009 shall be allocated for projects for new fixed guideway 
     capital projects of less than $75,000,000 in accordance with 
     subsection (e); and
       ``(ii) the remainder shall be allocated for major new fixed 
     guideway capital projects in accordance with subsection (d).
       ``(B) Fixed guideway modernization.--The amounts made 
     available under section 5338(b)(2)(D) shall be allocated for 
     capital projects for fixed guideway modernization.

[[Page H7327]]

       ``(C) Buses and bus-related equipment and facilities.--The 
     amounts made available under section 5338(b)(2)(E) 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)(D) for fiscal year 2006 and each fiscal year 
     thereafter shall be allocated in accordance with section 
     5337.
       ``(4) Preliminary engineering and alternatives analysis.--
     Not more that 8 percent of the allocation described in 
     paragraph (1)(A) may be expended on alternatives analysis and 
     preliminary engineering.
       ``(5) Preliminary engineering.--Not more than 8 percent of 
     the allocation described in paragraph (2)(A) may be expended 
     on preliminary engineering.
       ``(6) Funding for ferry boats.--Of the amounts described in 
     paragraphs (1)(A) and (2)(A)--
       ``(A) $10,400,000 shall be available in fiscal year 2005 
     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;
       ``(B) $15,000,000 shall be available in each of fiscal 
     years 2006 through 2009 for capital projects in Alaska and 
     Hawaii for new fixed guideway ferry systems and extension 
     projects utilizing ferry boats, ferry boat terminals, or 
     approaches to ferry boat terminals; and
       ``(C) $5,000,000 shall be available for each of fiscal 
     years 2006 though 2009 for payments to the Denali Commission 
     under the terms of section 307(e) of the Denali Commission 
     Act of 1998 (42 U.S.C. 3121 note) for docks, waterfront 
     development projects, and related transportation 
     infrastructure.
       ``(7) Bus and bus facility grants.--The amounts made 
     available under paragraphs (1)(C) and (2)(C) shall be 
     allocated as follows:
       ``(A) Ferry boat systems.--$10,000,000 shall be available 
     in each of fiscal years 2006 through 2009 for ferry boats or 
     ferry terminal facilities. Of such funds, the following 
     amounts shall be set aside for each fiscal year:
       ``(i) $2,500,000 for the San Francisco Water Transit 
     Authority.
       ``(ii) $2,500,000 for the Massachusetts Bay Transportation 
     Authority Ferry System.
       ``(iii) $1,000,000 for the Camden, New Jersey Ferry System.
       ``(iv) $1,000,000 for the Governor's Island, New York Ferry 
     System
       ``(v) $1,000,000 for the Philadelphia Penn's Landing Ferry 
     Terminal.
       ``(vi) $1,000,000 for the Staten Island Ferry.
       ``(vii) $650,000 for the Maine State Ferry Service, 
     Rockland.
       ``(viii) $350,000 for the Swans Island, Maine Ferry 
     Service.
       ``(B) Fuel cell bus program.--The following amounts shall 
     be set aside for the national fuel cell bus technology 
     development program under section 3039 of the Federal Public 
     Transportation Act of 2005:
       ``(i) $11,250,000 for fiscal year 2006.
       ``(ii) $11,500,000 for fiscal year 2007.
       ``(iii) $12,750,000 for fiscal year 2008.
       ``(iv) $13,500,000 for fiscal year 2009.
       ``(C) Projects not in urbanized areas.--Not less than 5.5 
     percent shall be available in each fiscal year for projects 
     that are not in urbanized areas.
       ``(D) Intermodal terminals.--Not less than $35,000,000 
     shall be available in each fiscal year for intermodal 
     terminal projects, including the intercity bus portion of 
     such projects.
       ``(E) Bus testing.--$3,000,000 shall be available in each 
     fiscal year for bus testing under section 5318.
       ``(8) Bus and bus facility grant considerations.--In making 
     grants under paragraphs (1)(C) and (2)(C), the Secretary 
     shall consider the age and condition of buses, bus fleets, 
     related equipment, and bus-related facilities.''.
       (b) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5309 and 
     inserting the following:

``5309. Capital investment grants.''.

       (c) Public-Private Partnership Pilot Program.--
       (1) Establishment.--The Secretary may establish and 
     implement a pilot program to demonstrate the advantages and 
     disadvantages of public-private partnerships for certain new 
     fixed guideway capital projects.
       (2) Limitation on the number of facilities.--The Secretary 
     may permit the establishment of 3 public-private partnerships 
     for new fixed guideway capital projects.
       (3) Eligibility.--To be eligible to participate in the 
     public-private partnership program, a recipient shall submit 
     to the Secretary an application that contains, at a minimum, 
     the following:
       (A) An identification of the new fixed guideway capital 
     project that has not entered into a full funding grant 
     agreement or project construction grant agreement with the 
     Federal Transit Administration.
       (B) A schedule and finance plan for the construction of and 
     operation of the proposed project.
       (C) An analysis of the costs, benefits, and efficiencies of 
     the proposed public-private partnership agreement.
       (4) Selection criteria.--The Secretary may approve the 
     application of a recipient under this subsection if the 
     Secretary determines that--
       (A) State and local laws permit public-private agreements 
     for all phases of project development, construction, and 
     operation of the project;
       (B) the recipient is unable to advance the project due to 
     fiscal constraints; and
       (C) the plan implementing the public-private partnership is 
     justified.
       (5) Program term.--The Secretary may approve an application 
     of a recipient for a public-private partnership for fiscal 
     years 2006 through 2009.
       (6) Report to congress.--Not later than 2 years after the 
     date of enactment of this Act, the Secretary shall transmit 
     to the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate a report containing 
     an assessment of the costs, benefits, and efficiencies of a 
     public-private partnership program for new fixed guideway 
     capital projects.
       (d) Restrictions on Use of Bus Category Funds for Fixed 
     Guideway Projects.--Funds provided to grantees under the bus 
     and bus facility category for fixed guideway ferry and 
     gondola projects in the Department of Transportation and 
     Related Agencies Appropriations Acts for any of fiscal years 
     1998 through 2005, or accompanying committee reports, that 
     remain available and unobligated may be used for new fixed 
     guideway capital projects under section 5309 of title 49, 
     United States Code. Funds made available to the same grantees 
     for similar projects under the bus and bus facility category 
     of section 5309 of title 49, United States Code, in fiscal 
     years 2006 through 2009 may be used for fixed guideway 
     projects under that section.
       (e) Miami Metrorail.--The Secretary shall credit funds 
     provided by the Florida department of transportation for the 
     extension of the Miami Metrorail System from Earlington 
     Heights to the Miami Intermodal Center to satisfy the 
     matching requirements of section 5309(h)(4) of title 49, 
     United Stated Code, for the Miami North Corridor and Miami 
     East-West Corridor projects.
       (f) Adjustments.--The adjustments made in the Federal 
     Transit Administrator's Dear Colleague letter of April 29, 
     2005, to require a ``medium'' for the cost-effectiveness 
     rating, in order for fixed guideway projects to be 
     recommended for funding by the Federal Transit 
     Administration, shall not apply to the following:
       (1) San Francisco Muni--Third Street LRT Phase I/II.
       (2) Santa Clara Valley Transit Authority--Silicon Valley 
     Rapid Transit Corridor.
       (3) Washington County, Oregon--Wilsonville to Beaverton 
     Commuter Rail.
       (4) Dulles Corridor Metrorail Project--Extension to Wiehle 
     Avenue.

     SEC. 3012. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY 
                   INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES.

       (a) In General.--Section 5310 is amended to read as 
     follows:

     ``Sec. 5310. Formula grants for special needs of elderly 
       individuals and individuals with disabilities

       ``(a) General Authority.--
       ``(1) Grants.--The Secretary may make grants to States and 
     local governmental authorities under this section for public 
     transportation capital projects planned, designed, and 
     carried out to meet the special needs of elderly individuals 
     and individuals with disabilities.
       ``(2) Subrecipients.--A State that receives a grant under 
     this section may allocate the amounts provided under the 
     grant to--
       ``(A) a private nonprofit organization, if the public 
     transportation service provided under paragraph (1) is 
     unavailable, insufficient, or inappropriate; or
       ``(B) a governmental authority that--
       ``(i) is approved by the State to coordinate services for 
     elderly individuals and individuals with disabilities; or
       ``(ii) certifies that there are not any nonprofit 
     organizations readily available in the area to provide the 
     services described under paragraph (1).
       ``(3) Acquiring public transportation services.--A public 
     transportation capital project under this section may include 
     acquisition of public transportation services as an eligible 
     capital expense.
       ``(4) Administrative expenses.--A State or local 
     governmental authority may use not more than 10 percent of 
     the amounts apportioned to the State under this section to 
     administer, plan, and provide technical assistance for a 
     project funded under this section.
       ``(b) Apportionment and Transfers.--
       ``(1) Formula.--The Secretary shall apportion amounts made 
     available to carry out this section under a formula the 
     Secretary administers that considers the number of elderly 
     individuals and individuals with disabilities in each State.
       ``(2) Transfer of funds.--Any funds apportioned 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.
       ``(c) Government's Share of Costs.--
       ``(1) Capital projects.--
       ``(A) In general.--A grant for a capital project under this 
     section shall be for 80 percent of the net capital costs of 
     the project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(b) of 
     title 23 shall receive an increased Government share in 
     accordance with the formula under that section.
       ``(2) Remainder.--The remainder of the net project costs--
       ``(A) may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital;
       ``(B) may be derived from amounts appropriated or otherwise 
     made available to a department or agency of the Government 
     (other than the Department of Transportation) that are 
     eligible to be expended for transportation; and
       ``(C) notwithstanding subparagraph (B), may be derived from 
     amounts made available to carry out the Federal lands highway 
     program established by section 204 of title 23.

[[Page H7328]]

       ``(3) Use of certain funds.--For purposes of paragraph 
     (2)(B), the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(C)(vii) of the Social 
     Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
     Federal or State funds to be used for transportation 
     purposes.
       ``(d) Grant Requirements.--
       ``(1) In general.--A grant under this section shall be 
     subject to all requirements of a grant under section 5307 to 
     the extent the Secretary determines appropriate.
       ``(2) Certification requirements.--
       ``(A) Fund transfers.--A grant recipient under this section 
     that transfers funds to a project funded under section 5336 
     in accordance with subsection (b)(2) shall certify that the 
     project for which the funds are requested has been 
     coordinated with private nonprofit providers of services 
     under this section.
       ``(B) Project selection and plan development.--Beginning in 
     fiscal year 2007, each grant recipient under this section 
     shall certify that--
       ``(i) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       ``(ii) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.
       ``(C) Allocations to subrecipients.--Each grant recipient 
     under this section shall certify that allocations of the 
     grant to subrecipients, if any, are distributed on a fair and 
     equitable basis.
       ``(e) State Program of Projects.--
       ``(1) In general.--Amounts made available to carry out this 
     section may be used for transportation projects to assist in 
     providing transportation services for elderly individuals and 
     individuals with disabilities that are included in a State 
     program of projects.
       ``(2) Submission and approval.--A State shall submit to the 
     Secretary annually for approval a program of projects. The 
     program shall contain an assurance that the program provides 
     for maximum feasible coordination of transportation services 
     assisted under this section with transportation services 
     assisted by other Government sources.
       ``(f) Leasing Vehicles.--Vehicles acquired under this 
     section may be leased to local governmental authorities to 
     improve transportation services designed to meet the special 
     needs of elderly individuals and individuals with 
     disabilities.
       ``(g) Meal Delivery for Homebound Individuals.--Public 
     transportation service providers receiving assistance under 
     this section or section 5311(c) may coordinate and assist in 
     regularly providing meal delivery service for homebound 
     individuals if the delivery service does not conflict with 
     providing public transportation service or reduce service to 
     public transportation passengers.
       ``(h) Transfers of Facilities and Equipment.--With the 
     consent of the recipient in possession of a facility or 
     equipment acquired with a grant under this section, a State 
     may transfer the facility or equipment to any recipient 
     eligible to receive assistance under this chapter if the 
     facility or equipment will continue to be used as required 
     under this section.''.
       (b) Elderly Individuals and Individuals With Disabilities 
     Pilot Program.--
       (1) In general.--In fiscal year 2006, the Secretary shall 
     establish a pilot program that will allow Wisconsin, Alaska, 
     Minnesota, Oregon, and 3 other States selected by the 
     Secretary to use not more than 33 percent of the funds 
     apportioned to each State to carry out section 5310 of title 
     49, United States Code, for operating costs associated with 
     public transportation projects planned, designed, and carried 
     out to meet the special needs of elderly individuals and 
     individuals with disabilities under such section. The 
     Secretary may base the selection of participating States on a 
     State's exemplary coordination of public transit-human 
     services transportation. The Secretary may require 
     participants to collect data necessary to support the report 
     to Congress required by paragraph (7).
       (2) Planning coordination.--Recipients of funds made 
     available consistent with this subsection shall certify 
     that--
       (A) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       (B) the plan was developed through a process that included 
     representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.
       (3) Government's share of costs.--Operating assistance 
     under this subsection may not exceed 50 percent of the net 
     operating costs of the project, as determined by the 
     Secretary. The credit for any non-Federal share provided 
     under this subsection shall not reduce nor replace State 
     funds required to match Federal funds for formula grants for 
     the special needs of elderly individuals and individuals with 
     disabilities program authorized under section 5310 of title 
     49, United States Code.
       (4) Remainder.--The remainder of the net project costs--
       (A) may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       (B) may be derived from amounts appropriated to or made 
     available to a department or agency of the Government (other 
     than the Department of Transportation) that are eligible to 
     be expended for transportation.
       (5) Use of certain funds.--For purposes of paragraph 
     (4)(B), the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(C)(vii) of the Social 
     Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
     Federal or State funds to be used for transportation 
     purposes.
       (6) Eligible activities.--Projects eligible under the pilot 
     program may include the collection of data necessary to 
     support the report to Congress required by paragraph (7).
       (7) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate a report on the pilot program, 
     which may include--
       (A) the extent to which funds were used to subsidize 
     existing paratransit service provided in compliance with the 
     Americans with Disabilities Act of 1990;
       (B) whether States participating in the pilot program use 
     the funds to provide services to persons with disabilities 
     that exceed those services required by the Americans with 
     Disabilities Act of 1990 differently than States not in the 
     pilot program;
       (C) whether States participating in this pilot program use 
     the funds to provide services to individuals with 
     disabilities that exceed those services required by the 
     Americans with Disabilities Act of 1990 to the detriment of 
     other eligible projects;
       (D) the percentage of funds used to assist elderly 
     individuals;
       (E) the percentage of funds used to assist individuals with 
     disabilities;
       (F) the extent to which States participating in this pilot 
     program serve a wider range of elderly, low income, and 
     persons with disabilities populations;
       (G) whether the pilot program improves services to elderly 
     individuals and individuals with disabilities;
       (H) the extent to which States participating in the pilot 
     program were able to expand the range of transportation 
     alternatives available to elderly individuals and individuals 
     with disabilities; and
       (I) whether the pilot program facilitates or discourages 
     coordination with or integration of other funding sources.
       (8) Sunset.--This subsection shall cease to be effective on 
     September 30, 2009.
       (c) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5310 and 
     inserting the following:

``5310. Formula grants for special needs of elderly individuals and 
              individuals with disabilities.''.

     SEC. 3013. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

       (a) Definitions.--Section 5311(a) is amended to read as 
     follows:
       ``(a) Definitions.--As used in this section, the following 
     definitions shall apply:
       ``(1) Recipient.--The term `recipient' means a State or 
     Indian tribe that receives a Federal transit program grant 
     directly from the Federal Government.
       ``(2) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, a nonprofit organization, or 
     an operator of public transportation or intercity bus service 
     that receives Federal transit program grant funds indirectly 
     through a recipient.''.
       (b) General Authority.--Section 5311(b) is amended to read 
     as follows:
       ``(b) General Authority.--
       ``(1) Grants authorized.--Except as provided by paragraph 
     (2), the Secretary may award grants under this section to 
     recipients located in areas other than urbanized areas for--
       ``(A) public transportation capital projects;
       ``(B) operating costs of equipment and facilities for use 
     in public transportation; and
       ``(C) the acquisition of public transportation services, 
     including service agreements with private providers of public 
     transportation services.
       ``(2) State program.--
       ``(A) In general.--A project eligible for a grant under 
     this section shall be included in a State program for public 
     transportation service projects, including agreements with 
     private providers of public transportation service.
       ``(B) Submission to secretary.--Each State shall submit to 
     the Secretary annually the program described in subparagraph 
     (A).
       ``(C) Approval.--The Secretary may not approve the program 
     unless the Secretary determines that--
       ``(i) the program provides a fair distribution of amounts 
     in the State, including Indian reservations; and
       ``(ii) the program provides the maximum feasible 
     coordination of public transportation service assisted under 
     this section with transportation service assisted by other 
     Federal sources.
       ``(3) Rural transportation assistance program.--
       ``(A) In general.--The Secretary shall carry out a rural 
     transportation assistance program in other than urbanized 
     areas.
       ``(B) Grants and contracts.--In carrying out this 
     paragraph, the Secretary may use not more than 2 percent of 
     the amount made available to carry out this section to make 
     grants and contracts for transportation research, technical 
     assistance, training, and related support services in other 
     than urbanized areas.
       ``(C) Projects of a national scope.--Not more than 15 
     percent of the amounts available under subparagraph (B) may 
     be used by the Secretary to carry out projects of a national 
     scope, with the remaining balance provided to the States.
       ``(4) Data collection.--Each recipient under this section 
     shall submit an annual report to the Secretary containing 
     information on capital investment, operations, and service 
     provided with funds received under this section, including--
       ``(A) total annual revenue;
       ``(B) sources of revenue;
       ``(C) total annual operating costs;
       ``(D) total annual capital costs;
       ``(E) fleet size and type, and related facilities;

[[Page H7329]]

       ``(F) revenue vehicle miles; and
       ``(G) ridership.''.
       (c) Apportionments.--Section 5311(c) is amended to read as 
     follows:
       ``(c) Apportionments.--
       ``(1) Public transportation on indian reservations.--Of the 
     amounts made available or appropriated for each fiscal year 
     pursuant to subsections (a)(1)(C)(v) and (b)(2)(G) of section 
     5338, the following amounts shall be apportioned for grants 
     to Indian tribes for any purpose eligible under this section, 
     under such terms and conditions as may be established by the 
     Secretary:
       ``(A) $8,000,000 for fiscal year 2006.
       ``(B) $10,000,000 for fiscal year 2007.
       ``(C) $12,000,000 for fiscal year 2008.
       ``(D) $15,000,000 for fiscal year 2009.
       ``(2) Remaining amounts.--Of the amounts made available or 
     appropriated for each fiscal year pursuant to subsections 
     (a)(1)(C)(v) and (b)(2)(G) of section 5338 that are not 
     apportioned under paragraph (1)--
       ``(A) 20 percent shall be apportioned to the States in 
     accordance with paragraph (3); and
       ``(B) 80 percent shall be apportioned to the States in 
     accordance with paragraph (4).
       ``(3) Apportionments based on land area in nonurbanized 
     areas.--
       ``(A) In general.--Subject to subparagraph (B), each State 
     shall receive an amount that is equal to the amount 
     apportioned under paragraph (2)(A) multiplied by the ratio of 
     the land area in areas other than urbanized areas in that 
     State and divided by the land area in all areas other than 
     urbanized areas in the United States, as shown by the most 
     recent decennial census of population.
       ``(B) Maximum apportionment.--No State shall receive more 
     than 5 percent of the amount apportioned under this 
     paragraph.
       ``(4) Apportionments based on population in nonurbanized 
     areas.--Each State shall receive an amount equal to the 
     amount apportioned under paragraph (2)(B) multiplied by the 
     ratio of the population of areas other than urbanized areas 
     in that State divided by the population of all areas other 
     than urbanized areas in the United States, as shown by the 
     most recent decennial census of population.''.
       (d) Use for Administration, Planning, and Technical 
     Assistance.--Section 5311(e) is amended--
       (1) in the subsection heading by inserting ``, Planning,'' 
     after ``Administration'';
       (2) by striking ``(1) The Secretary'' and inserting ``The 
     Secretary'';
       (3) by striking paragraph (2); and
       (4) by striking ``recipient'' and inserting 
     ``subrecipient''.
       (e) Intercity Bus Transportation.--Section 5311(f) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``(1) A State'' and inserting the 
     following:
       ``(1) In general.--A State'';
       (B) by striking ``after September 30, 1993,''; and
       (C) by moving subparagraphs (A) through (D) 2 ems to the 
     right; and
       (2) in paragraph (2)--
       (A) by striking ``(2) A State'' and inserting the 
     following:
       ``(2) Certification.--A State''; and
       (B) by striking ``Secretary of Transportation'' and 
     inserting ``Secretary, after consultation with affected 
     intercity bus service providers,''.
       (f) Government Share of Costs.--Section 5311(g) is amended 
     to read as follows:
       ``(g) Government Share of Costs.--
       ``(1) Capital projects.--
       ``(A) In general.--Except as provided by subparagraph (B), 
     a grant awarded under this section for any purpose other than 
     operating assistance shall be for 80 percent of the net 
     capital costs of the project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(b) of 
     title 23 shall receive a Government share of the net capital 
     costs in accordance with the formula under that section.
       ``(2) Operating assistance.--
       ``(A) In general.--Except as provided by subparagraph (B), 
     a grant made under this section for operating assistance may 
     not exceed 50 percent of the net operating costs of the 
     project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(b) of 
     title 23 shall receive a Government share of the net 
     operating costs equal to 62.5 percent of the Government share 
     provided for under paragraph (1)(B).
       ``(3) Remainder.--The remainder of net project costs--
       ``(A) may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital;
       ``(B) may be derived from amounts appropriated or otherwise 
     made available to a department or agency of the Government 
     (other than the Department of Transportation) that are 
     eligible to be expended for transportation; and
       ``(C) notwithstanding subparagraph (B), may be derived from 
     amounts made available to carry out the Federal lands highway 
     program established by section 204 of title 23.
       ``(4) Use of certain funds.--For purposes of paragraph 
     (3)(B), the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(C)(vii) of the Social 
     Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
     Federal or State funds to be used for transportation 
     purposes.
       ``(5) Limitation on operating assistance.--A State carrying 
     out a program of operating assistance under this section may 
     not limit the level or extent of use of the Government grant 
     for the payment of operating expenses.''.
       (g) Relationship to Other Laws.--Section 5311 is amended--
       (1) by striking subsection (h); and
       (2) by redesignating subsections (i) and (j) as subsections 
     (h) and (i), respectively.
       (h) Waiver Condition.--Section 5311(j)(1) is amended by 
     striking ``but the Secretary of Labor may waive the 
     application of section 5333(b)'' and inserting ``if the 
     Secretary of Labor utilizes a special warranty that provides 
     a fair and equitable arrangement to protect the interests of 
     employees''.
       (i) Correction to Chapter Analysis.--The analysis for 
     chapter 53 is amended by striking the item relating to 
     section 5311 and inserting the following:

``5311. Formula grants for other than urbanized areas.''.

     SEC. 3014. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 
                   DEPLOYMENT PROJECTS.

       (a) In General.--Section 5312(a) is amended to read as 
     follows:
       ``(a) Research, Development, Demonstration, and Deployment 
     Projects.--
       ``(1) In general.--The Secretary may make grants, 
     contracts, cooperative agreements, and other agreements 
     (including agreements with departments, agencies, and 
     instrumentalities of the United States Government) for 
     research, development, demonstration, and deployment 
     projects, and evaluation of technology of national 
     significance to public transportation, that the Secretary 
     determines will improve public transportation service or help 
     public transportation service meet the total transportation 
     needs at a minimum cost.
       ``(2) Information.--The Secretary may request and receive 
     appropriate information from any source.
       ``(3) Savings provision.--This subsection does not limit 
     the authority of the Secretary under any other law.''.
       (b) Joint Partnership Program for Deployment of 
     Innovation.--Section 5312 is amended by striking subsections 
     (b) and (c) and redesignating subsections (d) and (e) as 
     subsections (b) and (c), respectively.
       (c) International Mass Transportation Program.--Section 
     5312(c)(2) (as redesignated by subsection (b) of this 
     section) is amended by striking ``public and private'' and 
     inserting ``public or private''.
       (d) Funding.--Section 5312(c)(3) (as redesignated by 
     subsection (b) of this section) is amended by striking 
     ``shall be accounted for separately within the Mass Transit 
     Account of the Highway Trust Fund and''.
       (e) Conforming Amendments.--
       (1) Section heading.--Section 5312 is amended by striking 
     the section heading and inserting the following:

     ``Sec. 5312. Research, development, demonstration, and 
       deployment projects''.

       (2) Chapter analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5312 and 
     inserting the following:

``5312. Research, development, demonstration, and deployment 
              projects.''.

     SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM.

       (a) In General.--Section 5313 is amended--
       (1) by striking subsection (b);
       (2) in subsection (a)--
       (A) in paragraph (1) by striking ``(1) The amounts made 
     available under paragraphs (1) and (2)(C)(ii) of section 
     5338(c) of this title'' and inserting ``The amounts made 
     available under subsections (a)(5)(C)(iii) and (d)(1) of 
     section 5338''; and
       (B) in paragraph (2) by striking ``(2) The Secretary'' and 
     inserting the following:
       ``(b) Federal Assistance.--The Secretary''; and
       (3) by striking subsection (c) and inserting the following:
       ``(c) Government's Share.--If there would be a clear and 
     direct financial benefit to an entity under a grant or 
     contract financed under this section, the Secretary shall 
     establish a Government share consistent with that benefit.''.
       (b) Conforming Amendments.--
       (1) Section heading.--Section 5313 is amended by striking 
     the section heading and inserting the following:

     ``Sec. 5313. Transit cooperative research program''.

       (2) Chapter analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5313 and 
     inserting the following:

``5313. Transit cooperative research program.''.

     SEC. 3016. NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS.

       (a) In General.--Section 5314 is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 5314. National research programs'';

       (2) in subsection (a)(1)--
       (A) by striking ``subsections (d) and (h)(7) of section 
     5338 of this title'' and inserting ``section 5338(d)'';
       (B) by striking ``and contracts'' and inserting ``, 
     contracts, cooperative agreements, or other agreements'';
       (C) by striking ``5303-5306,''; and
       (D) by striking ``5317,'';
       (3) in subsection (a)(2) by striking ``Of the amounts'' and 
     all that follows through ``$3,000,000 to'' and inserting 
     ``The Secretary shall'';
       (4) by striking subsection (a)(4)(B);
       (5) by redesignating subsection (a)(4)(C) as subsection 
     (a)(4)(B);
       (6) by adding at the end of subsection (a) the following:
       ``(6) Medical transportation demonstration grants.--
       ``(A) Grants authorized.--The Secretary may award 
     demonstration grants, from funds made available under 
     paragraph (1), to eligible entities to provide transportation 
     services to individuals to access dialysis treatments and 
     other medical treatments for renal disease.

[[Page H7330]]

       ``(B) Eligible entities.--An entity shall be eligible to 
     receive a grant under this paragraph if the entity--
       ``(i) meets the conditions described in section 501(c)(3) 
     of the Internal Revenue Code of 1986; or
       ``(ii) is an agency of a State or unit of local government.
       ``(C) Use of funds.--Grant funds received under this 
     paragraph may be used to provide transportation services to 
     individuals to access dialysis treatments and other medical 
     treatments for renal disease.
       ``(D) Application.--
       ``(i) In general.--Each eligible entity desiring a grant 
     under this paragraph shall submit an application to the 
     Secretary at such time, at such place, and containing such 
     information as the Secretary may reasonably require.
       ``(ii) Selection of grantees.--In awarding grants under 
     this paragraph, the Secretary shall give preference to 
     eligible entities from communities with--

       ``(I) high incidence of renal disease; and
       ``(II) limited access to dialysis facilities.

       ``(E) Rulemaking.--The Secretary shall issue regulations to 
     implement and administer the grant program established under 
     this paragraph.
       ``(F) Report.--The Secretary shall submit a report on the 
     results of the demonstration projects funded under this 
     paragraph to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives.''.
       (7) in subsection (b) by striking ``or contract'' and all 
     that follows through ``section,'' and inserting ``, contract, 
     cooperative agreement, or other agreement under subsection 
     (a) or section 5312,''; and
       (b) 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 shall award grants to a 
     national not-for-profit organization for the establishment 
     and maintenance of a national technical assistance center.
       ``(2) Eligibility.--An organization shall be eligible to 
     receive a 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 Nation and 
     provide such practices to local communities that are 
     implementing senior transportation programs;
       ``(B) work with teams from local communities to identify 
     how the communities are successfully meeting the 
     transportation needs of senior citizens and any gaps in 
     services in order to create a plan for an integrated senior 
     transportation program;
       ``(C) provide resources on ways to pay for senior 
     transportation services;
       ``(D) create a web site to publicize and circulate 
     information on senior transportation programs;
       ``(E) establish a clearinghouse for print, video, and audio 
     resources on senior mobility; and
       ``(F) administer the demonstration grant program 
     established under paragraph (4).
       ``(4) Grants authorized.--
       ``(A) In general.--The national technical assistance center 
     established under this section, in consultation with the 
     Federal Transit Administration, shall award senior 
     transportation demonstration grants to--
       ``(i) local transportation organizations;
       ``(ii) State agencies;
       ``(iii) units of local government; and
       ``(iv) nonprofit organizations.
       ``(B) Use of funds.--Grant funds received under this 
     paragraph may be used to--
       ``(i) evaluate the state of transportation services for 
     senior citizens;
       ``(ii) recognize barriers to mobility that senior citizens 
     encounter in their communities;
       ``(iii) establish partnerships and promote coordination 
     among community stakeholders, including public, not-for-
     profit, and for-profit providers of transportation services 
     for senior citizens;
       ``(iv) identify future transportation needs of senior 
     citizens within local communities; and
       ``(v) establish strategies to meet the unique needs of 
     healthy and frail senior citizens.
       ``(C) Selection of grantees.--The Secretary shall select 
     grantees under this paragraph based on a fair representation 
     of various geographical locations throughout the United 
     States.''.
       (c) Alternative Fuels Study.--
       (1) Study.--The Secretary shall conduct a study of the 
     actions necessary to facilitate the purchase of increased 
     volumes of alternative fuels (as defined in section 301 of 
     the Energy Policy Act of 1992 (42 U.S.C. 13211)) for use in 
     public transit vehicles.
       (2) Scope of study.--The study conducted under this 
     subsection shall focus on the incentives necessary to 
     increase the use of alternative fuels in public transit 
     vehicles, including buses, fixed guideway vehicles, and 
     ferries.
       (3) Contents.--The study shall consider--
       (A) the environmental benefits of increased use of 
     alternative fuels in transit vehicles;
       (B) existing opportunities available to transit system 
     operators that encourage the purchase of alternative fuels 
     for transit vehicle operation;
       (C) existing barriers to transit system operators that 
     discourage the purchase of alternative fuels for transit 
     vehicle operation, including situations where alternative 
     fuels that do not require capital improvements to transit 
     vehicles are disadvantaged over fuels that do require such 
     improvements; and
       (D) the necessary levels and type of support necessary to 
     encourage additional use of alternative fuels for transit 
     vehicle operation.
       (4) Recommendations.--The study shall recommend regulatory 
     and legislative alternatives that will result in the 
     increased use of alternative fuels in transit vehicles.
       (5) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives a report containing the 
     results of the study completed under this subsection.
       (d) Conforming Amendment.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5314 and 
     inserting the following:

``5314. National research programs.''.

     SEC. 3017. NATIONAL TRANSIT INSTITUTE.

       (a) Establishment and Duties.--Section 5315 is amended by 
     striking subsections (a) and (b) and inserting the following:
       ``(a) Establishment.--The Secretary shall award grants to 
     Rutgers University to conduct a national transit institute.
       ``(b) Duties.--
       ``(1) In general.--In cooperation with the Federal Transit 
     Administration, State transportation departments, public 
     transportation authorities, and national and international 
     entities, the institute established under subsection (a) 
     shall develop and conduct training and educational programs 
     for Federal, State, and local transportation employees, 
     United States citizens, and foreign nationals engaged or to 
     be engaged in Government-aid public transportation work.
       ``(2) Training and educational programs.--The training and 
     educational programs developed under paragraph (1) may 
     include courses in recent developments, techniques, and 
     procedures related to--
       ``(A) intermodal and public transportation planning;
       ``(B) management;
       ``(C) environmental factors;
       ``(D) acquisition and joint use rights of way;
       ``(E) engineering and architectural design;
       ``(F) procurement strategies for public transportation 
     systems;
       ``(G) turnkey approaches to delivering public 
     transportation systems;
       ``(H) new technologies;
       ``(I) emission reduction technologies;
       ``(J) ways to make public transportation accessible to 
     individuals with disabilities;
       ``(K) construction, construction management, insurance, and 
     risk management;
       ``(L) maintenance;
       ``(M) contract administration;
       ``(N) inspection;
       ``(O) innovative finance;
       ``(P) workplace safety; and
       ``(Q) public transportation security.''.
       (b) Availability of Amounts.--Section 5315(d) is amended by 
     striking ``mass'' each place it appears.

     SEC. 3018. JOB ACCESS AND REVERSE COMMUTE FORMULA GRANTS.

       (a) In General.--Chapter 53 is amended by inserting after 
     section 5315 the following:

     ``Sec. 5316. Job access and reverse commute formula grants

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Access to jobs project.--The term `access to jobs 
     project' means a project relating to the development and 
     maintenance of transportation services designed to transport 
     welfare recipients and eligible low-income individuals to and 
     from jobs and activities related to their employment, 
     including--
       ``(A) transportation projects to finance planning, capital, 
     and operating costs of providing access to jobs under this 
     chapter;
       ``(B) promoting public transportation by low-income 
     workers, including the use of public transportation by 
     workers with nontraditional work schedules;
       ``(C) promoting the use of transit vouchers for welfare 
     recipients and eligible low-income individuals; and
       ``(D) promoting the use of employer-provided 
     transportation, including the transit pass benefit program 
     under section 132 of the Internal Revenue Code of 1986.
       ``(2) Eligible low-income individual.--The term `eligible 
     low-income individual' means an individual whose family 
     income is at or below 150 percent of the poverty line (as 
     that term is defined in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)), including any 
     revision required by that section) for a family of the size 
     involved.
       ``(3) Recipient.--The term `recipient' means a designated 
     recipient (as defined in section 5307(a)(2)) and a State that 
     receives a grant under this section directly.
       ``(4) Reverse commute project.--The term `reverse commute 
     project' means a public transportation project designed to 
     transport residents of urbanized areas and other than 
     urbanized areas to suburban employment opportunities, 
     including any projects to--
       ``(A) subsidize the costs associated with adding reverse 
     commute bus, train, carpool, van routes, or service from 
     urbanized areas and other than urbanized areas to suburban 
     workplaces;

[[Page H7331]]

       ``(B) subsidize the purchase or lease by a nonprofit 
     organization or public agency of a van or bus dedicated to 
     shuttling employees from their residences to a suburban 
     workplace; or
       ``(C) otherwise facilitate the provision of public 
     transportation services to suburban employment opportunities.
       ``(5) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, nonprofit organization, or 
     operator of public transportation services that receives a 
     grant under this section indirectly through a recipient.
       ``(6) Welfare recipient.--The term `welfare recipient' 
     means an individual who has received assistance under a State 
     or tribal program funded under part A of title IV of the 
     Social Security Act at any time during the 3-year period 
     before the date on which the applicant applies for a grant 
     under this section.
       ``(b) General Authority.--
       ``(1) Grants.--The Secretary may make grants under this 
     section to a recipient for access to jobs and reverse commute 
     projects carried out by the recipient or a subrecipient.
       ``(2) Administrative expenses.--A recipient may use not 
     more than 10 percent of the amounts apportioned to the 
     recipient under this section to administer, plan, and provide 
     technical assistance for a project funded under this section.
       ``(c) Apportionments.--
       ``(1) Formula.--The Secretary shall apportion amounts made 
     available for a fiscal year to carry out this section as 
     follows:
       ``(A) 60 percent of the funds shall be apportioned among 
     designated recipients (as defined in section 5307(a)(2)) for 
     urbanized areas with a population of 200,000 or more in the 
     ratio that--
       ``(i) the number of eligible low-income individuals and 
     welfare recipients in each such urbanized area; bears to
       ``(ii) the number of eligible low-income individuals and 
     welfare recipients in all such urbanized areas.
       ``(B) 20 percent of the funds shall be apportioned among 
     the States in the ratio that--
       ``(i) the number of eligible low-income individuals and 
     welfare recipients in urbanized areas with a population of 
     less than 200,000 in each State; bears to
       ``(ii) the number of eligible low-income individuals and 
     welfare recipients in urbanized areas with a population of 
     less than 200,000 in all States.
       ``(C) 20 percent of the funds shall be apportioned among 
     the States in the ratio that--
       ``(i) the number of eligible low-income individuals and 
     welfare recipients in other than urbanized areas in each 
     State; bears to
       ``(ii) the number of eligible low-income individuals and 
     welfare recipients in other than urbanized areas in all 
     States.
       ``(2) Use of apportioned funds.--Except as provided in 
     paragraph (3)--
       ``(A) funds apportioned under paragraph (1)(A) shall be 
     used for projects serving urbanized areas with a population 
     of 200,000 or more;
       ``(B) funds apportioned under paragraph (1)(B) shall be 
     used for projects serving urbanized areas with a population 
     of less than 200,000; and
       ``(C) funds apportioned under paragraph (1)(C) shall be 
     used for projects serving other than urbanized areas.
       ``(3) Exceptions.--A State may use funds apportioned under 
     paragraphs (1)(B) and (1)(C)--
       ``(A) for projects serving areas other than the area 
     specified in paragraph (2)(B) or (2)(C), as the case may be, 
     if the Governor of the State certifies that all of the 
     objectives of this section are being met in the specified 
     area; or
       ``(B) for projects anywhere in the State if the State has 
     established a statewide program for meeting the objectives of 
     this section.
       ``(d) Competitive Process for Grants to Subrecipients.--
       ``(1) Areawide solicitations.--A recipient of funds 
     apportioned under subsection (c)(1)(A) shall conduct, in 
     cooperation with the appropriate metropolitan planning 
     organization, an areawide solicitation for applications for 
     grants to the recipient and subrecipients under this section.
       ``(2) Statewide solicitation.--A recipient of funds 
     apportioned under subsection (c)(1)(B) or (c)(1)(C) shall 
     conduct a statewide solicitation for applications for grants 
     to the recipient and subrecipients under this section.
       ``(3) Application.--Recipients and subrecipients seeking to 
     receive a grant from funds apportioned under subsection (c) 
     shall submit to the recipient an application in the form and 
     in accordance with such requirements as the recipient shall 
     establish.
       ``(4) Grant awards.--The recipient shall award grants under 
     paragraphs (1) and (2) on a competitive basis.
       ``(e) Transfers.--
       ``(1) In general.--A State may transfer any funds 
     apportioned to it under subsection (c)(1)(B) or (c)(1)(C), or 
     both, to an apportionment under section 5311(c) or 5336, or 
     both.
       ``(2) Limited to eligible projects.--Any apportionment 
     transferred under this subsection shall be made available 
     only for eligible job access and reverse commute projects as 
     described in this section.
       ``(3) Consultation.--A State may make a transfer of an 
     amount under this subsection only after consulting with 
     responsible local officials and publicly owned operators of 
     public transportation in each area for which the amount 
     originally was awarded under subsection (d)(4).
       ``(f) Grant Requirements.--
       ``(1) In general.--A grant under this section shall be 
     subject to the requirements of section 5307.
       ``(2) Fair and equitable distribution.--A recipient of a 
     grant under this section shall certify to the Secretary that 
     allocations of the grant to subrecipients are distributed on 
     a fair and equitable basis.
       ``(g) Coordination.--
       ``(1) In general.--The Secretary shall coordinate 
     activities under this section with related activities under 
     programs of other Federal departments and agencies.
       ``(2) With nonprofit providers.--A State that transfers 
     funds to an apportionment under section 5336 pursuant to 
     subsection (e) shall certify to the Secretary that any 
     project for which the funds are requested under this section 
     has been coordinated with nonprofit providers of services.
       ``(3) Project selection and planning.--A recipient of funds 
     under this section shall certify to the Secretary that--
       ``(A) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       ``(B) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.
       ``(h) Government's Share of Costs.--
       ``(1) 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.
       ``(2) 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.
       ``(3) Remainder.--The remainder of the net project costs--
       ``(A) may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to a department or agency of the Government (other 
     than the Department of Transportation) that are eligible to 
     be expended for transportation.
       ``(4) Use of certain funds.--For purposes of paragraph 
     (3)(B), the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(C)(vii) of the Social 
     Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
     Federal or State funds to be used for transportation 
     purposes.
       ``(5) Limitation on operating assistance.--A recipient 
     carrying out a program of operating assistance under this 
     section may not limit the level or extent of use of the 
     Government grant for the payment of operating expenses.
       ``(i) Program Evaluation.--
       ``(1) Comptroller general.--Beginning one year after the 
     date of enactment of the Federal Public Transportation Act of 
     2005, and every 2 years thereafter, the Comptroller General 
     shall--
       ``(A) conduct a study to evaluate the grant program 
     authorized by this section; and
       ``(B) transmit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a report describing the results of the study under 
     subparagraph (A).
       ``(2) Department of transportation.--Not later than 3 years 
     after the date of enactment of Federal Public Transportation 
     Act of 2005, the Secretary shall--
       ``(A) conduct a study to evaluate the effectiveness of the 
     grant program authorized by this section and the 
     effectiveness of recipients making grants to subrecipients 
     under this section; and
       ``(B) transmit to the committees referred to in paragraph 
     (1)(B) a report describing the results of the study under 
     subparagraph (A).''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by inserting after the item relating to section 5315 
     the following:

``5316. Job access and reverse commute formula grants.''.

       (c) Repeal.--Effective October 1, 2005, section 3037 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5309 note; 112 Stat. 387) is repealed.

     SEC. 3019. NEW FREEDOM PROGRAM.

       (a) In General.--Chapter 53 is amended by inserting after 
     section 5316 the following:

     ``Sec. 5317. New freedom program

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Recipient.--The term `recipient' means a designated 
     recipient (as defined in section 5307(a)(2)) and a State that 
     receives a grant under this section directly.
       ``(2) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, nonprofit organization, or 
     operator of public transportation services that receives a 
     grant under this section indirectly through a recipient.
       ``(b) General Authority.--
       ``(1) Grants.--The Secretary may make grants under this 
     section to a recipient for new public transportation services 
     and public transportation alternatives beyond those required 
     by the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.) that assist individuals with disabilities with 
     transportation, including transportation to and from jobs and 
     employment support services.
       ``(2) Administrative expenses.--A recipient may use not 
     more than 10 percent of the amounts apportioned to the 
     recipient under this section to administer, plan, and provide 
     technical assistance for a project funded under this section.
       ``(c) Apportionments.--
       ``(1) Formula.--The Secretary shall apportion amounts made 
     available to carry out this section as follows:
       ``(A) 60 percent of the funds shall be apportioned among 
     designated recipients (as defined in section 5307(a)(2)) for 
     urbanized areas with a population of 200,000 or more in the 
     ratio that--

[[Page H7332]]

       ``(i) the number of individuals with disabilities in each 
     such urbanized area; bears to
       ``(ii) the number of individuals with disabilities in all 
     such urbanized areas.
       ``(B) 20 percent of the funds shall be apportioned among 
     the States in the ratio that--
       ``(i) the number of individuals with disabilities in 
     urbanized areas with a population of less than 200,000 in 
     each State; bears to
       ``(ii) the number of individuals with disabilities in 
     urbanized areas with a population of less than 200,000 in all 
     States.
       ``(C) 20 percent of the funds shall be apportioned among 
     the States in the ratio that--
       ``(i) the number of individuals with disabilities in other 
     than urbanized areas in each State; bears to
       ``(ii) the number of individuals with disabilities in other 
     than urbanized areas in all States.
       ``(2) Use of apportioned funds.--Funds apportioned under 
     paragraph (1) shall be used for projects as follows:
       ``(A) Funds apportioned under paragraph (1)(A) shall be 
     used for projects serving urbanized areas with a population 
     of 200,000 or more.
       ``(B) Funds apportioned under paragraph (1)(B) shall be 
     used for projects serving urbanized areas with a population 
     of less than 200,000.
       ``(C) Funds apportioned under paragraph (1)(C) shall be 
     used for projects serving other than urbanized areas.
       ``(3) Transfers.--
       ``(A) In general.--A State may transfer any funds 
     apportioned to it under paragraph (1)(B) or (1)(C), or both, 
     to an apportionment under section 5311(c) or 5336, or both.
       ``(B) Limited to eligible projects.--Any funds transferred 
     pursuant to this paragraph shall be made available only for 
     eligible projects selected under this section.
       ``(C) Consultation.--A State may make a transfer of an 
     amount under this subsection only after consulting with 
     responsible local officials and publicly owned operators of 
     public transportation in each area for which the amount 
     originally was awarded under subsection (d)(4).
       ``(d) Competitive Process for Grants to Subrecipients.--
       ``(1) Areawide solicitations.--A recipient of funds 
     apportioned under subsection (c)(1)(A) shall conduct, in 
     cooperation with the appropriate metropolitan planning 
     organization, an areawide solicitation for applications for 
     grants to the recipient and subrecipients under this section.
       ``(2) Statewide solicitation.--A recipient of funds 
     apportioned under subsection (c)(1)(B) or (c)(1)(C) shall 
     conduct a statewide solicitation for applications for grants 
     to the recipient and subrecipients under this section.
       ``(3) Application.--Recipients and subrecipients seeking to 
     receive a grant from funds apportioned under subsection (c) 
     shall submit to the recipient an application in the form and 
     in accordance with such requirements as the recipient shall 
     establish.
       ``(4) Grant awards.--The recipient shall award grants under 
     paragraphs (1) and (2) on a competitive basis.
       ``(e) Grant Requirements.--
       ``(1) In general.--A grant under this section shall be 
     subject to all the requirements of section 5310 to the extent 
     the Secretary considers appropriate.
       ``(2) Fair and equitable distribution.--A recipient of a 
     grant under this section shall certify that allocations of 
     the grant to subrecipients are distributed on a fair and 
     equitable basis.
       ``(f) Coordination.--
       ``(1) In general.--The Secretary shall coordinate 
     activities under this section with related activities under 
     programs of other Federal departments and agencies.
       ``(2) With nonprofit providers.--A recipient that transfers 
     funds to an apportionment under section 5336 pursuant to 
     subsection (c)(2) shall certify that the project for which 
     the funds are requested under this section has been 
     coordinated with nonprofit providers of services.
       ``(3) Project selection and planning.--Beginning in fiscal 
     year 2007, a recipient of funds under this section shall 
     certify that--
       ``(A) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       ``(B) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.
       ``(g) Government's Share of Costs.--
       ``(1) 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.
       ``(2) 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.
       ``(3) Remainder.--The remainder of the net project costs--
       ``(A) may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to a department or agency of the Government (other 
     than the Department of Transportation) that are eligible to 
     be expended for transportation.
       ``(4) Use of certain funds.--For purposes of paragraph 
     (3)(B), the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(C)(vii) of the Social 
     Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
     Federal or State funds to be used for transportation 
     purposes.
       ``(5) Limitation on operating assistance.--A recipient 
     carrying out a program of operating assistance under this 
     section may not limit the level or extent of use of the 
     Government grant for the payment of operating expenses.''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by inserting after the item relating to section 5316 
     the following:

``5317. New freedom program.''.

     SEC. 3020. BUS TESTING FACILITY.

       (a) Facility.--Section 5318(a) is amended to read as 
     follows:
       ``(a) Facility.--The Secretary shall maintain one facility 
     for testing a new bus model for maintainability, reliability, 
     safety, performance (including braking performance), 
     structural integrity, fuel economy, emissions, and noise.''.
       (b) Availability of Amounts to Pay for Testing.--Section 
     5318(d) is amended by striking ``under section 5309(m)(1)(C) 
     of this title'' and inserting ``to carry out this section''.
       (c) Acquiring New Bus Models.--Section 5318(e) is amended 
     to read as follows:
       ``(e) Acquiring New Bus Models.--Amounts appropriated or 
     made available under this chapter may be obligated or 
     expended to acquire a new bus model only if a bus of that 
     model has been tested at the facility maintained by the 
     Secretary under subsection (a).''.

     SEC. 3021. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC 
                   LANDS.

       (a) In General.--Chapter 53 is amended by striking section 
     5320 and inserting the following:

     ``Sec. 5320. Alternative transportation in parks and public 
       lands

       ``(a) In General.--
       ``(1) Authorization.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, may award a grant or enter into a 
     contract, cooperative agreement, interagency agreement, 
     intraagency agreement, or other agreement to carry out a 
     qualified project under this section to enhance the 
     protection of national parks and public lands and increase 
     the enjoyment of those visiting the parks and public lands 
     by--
       ``(i) ensuring access to all, including persons with 
     disabilities;
       ``(ii) improving conservation and park and public land 
     opportunities in urban areas through partnering with State 
     and local governments; and
       ``(iii) improving park and public land transportation 
     infrastructure.
       ``(B) Consultation with other agencies.--To the extent that 
     projects are proposed or funded in eligible areas that are 
     not within the jurisdiction of the Department of the 
     Interior, the Secretary of the Interior shall consult with 
     the heads of the relevant Federal land management agencies in 
     carrying out the responsibilities under this section.
       ``(2) Use of funds.--A grant, cooperative agreement, 
     interagency agreement, intraagency agreement, or other 
     agreement for a qualified project under this section shall be 
     available to finance the leasing of equipment and facilities 
     for use in public transportation, subject to any regulation 
     that the Secretary may prescribe limiting the grant or 
     agreement to leasing arrangements that are more cost-
     effective than purchase or construction.
       ``(3) Alternative transportation facilities and services.--
     Projects receiving assistance under this section shall 
     provide alternative transportation facilities and services 
     that complement and enhance existing transportation services 
     in national parks and public lands in a manner that is 
     consistent with Department of Interior and other public land 
     management policies regarding private automobile access to 
     and in such parks and lands.
       ``(b) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Eligible area.--The term `eligible area' means any 
     federally owned or managed park, refuge, or recreational area 
     that is open to the general public, including--
       ``(A) a unit of the National Park System;
       ``(B) a unit of the National Wildlife Refuge System;
       ``(C) a recreational area managed by the Bureau of Land 
     Management;
       ``(D) a recreation area managed by the Bureau of 
     Reclamation; and
       ``(E) a unit of the National Forest System.
       ``(2) Federal land management agency.--The term `Federal 
     land management agency' means a Federal agency that manages 
     an eligible area.
       ``(3) Alternative transportation.--The term `alternative 
     transportation' means transportation by bus, rail, or any 
     other publicly or privately owned conveyance that provides to 
     the public general or special service on a regular basis, 
     including sightseeing service. Such term also includes a 
     nonmotorized transportation system (including the provision 
     of facilities for pedestrians, bicycles, and nonmotorized 
     watercraft).
       ``(4) Qualified participant.--The term `qualified 
     participant' means--
       ``(A) a Federal land management agency; or
       ``(B) a State, tribal, or local governmental authority with 
     jurisdiction over land in the vicinity of an eligible area 
     acting with the consent of the Federal land management 
     agency, alone or in partnership with a Federal land 
     management agency or other governmental or nongovernmental 
     participant.
       ``(5) Qualified project.--The term `qualified project' 
     means a planning or capital project in or in the vicinity of 
     an eligible area that--
       ``(A) is an activity described in section 5302(a)(1)(A), 
     5303, 5304, 5305, or 5309(b);
       ``(B) involves--
       ``(i) the purchase of rolling stock that incorporates clean 
     fuel technology or the replacement of buses of a type in use 
     on the date of enactment of the Federal Public Transportation 
     Act of 2005 with clean fuel vehicles; or

[[Page H7333]]

       ``(ii) the deployment of alternative transportation 
     vehicles that introduce innovative technologies or methods;
       ``(C) relates to the capital costs of coordinating the 
     Federal land management agency public transportation systems 
     with other public transportation systems;
       ``(D) provides a nonmotorized transportation system 
     (including the provision of facilities for pedestrians, 
     bicycles, and nonmotorized watercraft);
       ``(E) provides waterborne access within or in the vicinity 
     of an eligible area, as appropriate to and consistent with 
     this section; or
       ``(F) is any other alternative transportation project 
     that--
       ``(i) enhances the environment;
       ``(ii) prevents or mitigates an adverse impact on a natural 
     resource;
       ``(iii) improves Federal land management agency resource 
     management;
       ``(iv) improves visitor mobility and accessibility and the 
     visitor experience;
       ``(v) reduces congestion and pollution (including noise 
     pollution and visual pollution); or
       ``(vi) conserves a natural, historical, or cultural 
     resource (excluding rehabilitation or restoration of a non-
     transportation facility).
       ``(c) Federal Agency Cooperative Arrangements.--The 
     Secretary shall develop cooperative arrangements with the 
     Secretary of the Interior that provide for--
       ``(1) technical assistance in alternative transportation;
       ``(2) interagency and multidisciplinary teams to develop 
     Federal land management agency alternative transportation 
     policy, procedures, and coordination; and
       ``(3) the development of procedures and criteria relating 
     to the planning, selection, and funding of qualified projects 
     and the implementation and oversight of the program of 
     projects in accordance with this section.
       ``(d) Limitation on Use of Available Amounts.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, may use not more than 10 percent 
     of the amount made available for a fiscal year under section 
     5338(b)(2)(J) to carry out planning, research, and technical 
     assistance under this section, including the development of 
     technology appropriate for use in a qualified project.
       ``(2) Additional amounts.--Amounts made available under 
     this subsection are in addition to amounts otherwise 
     available to the Secretary to carry out planning, research, 
     and technical assistance under this chapter or any other 
     provision of law.
       ``(3) Maximum amount.--No qualified project shall receive 
     more than 25 percent of the total amount made available to 
     carry out this section under section 5338(b)(2)(J) for any 
     fiscal year.
       ``(e) Planning Process.--In undertaking a qualified project 
     under this section--
       ``(1) if the qualified participant is a Federal land 
     management agency--
       ``(A) the Secretary, in cooperation with the Secretary of 
     the Interior, shall develop transportation planning 
     procedures that are consistent with--
       ``(i) the metropolitan planning provisions under section 
     5303;
       ``(ii) the statewide planning provisions under section 
     5304; and
       ``(iii) the public participation requirements under section 
     5307(d); and
       ``(B) in the case of a qualified project that is at a unit 
     of the National Park System, the planning process shall be 
     consistent with the general management plans of the unit of 
     the National Park System; and
       ``(2) if the qualified participant is a State or local 
     governmental authority, or more than one State or local 
     governmental authority in more than one State, the qualified 
     participant shall--
       ``(A) comply with the metropolitan planning provisions 
     under section 5303;
       ``(B) comply with the statewide planning provisions under 
     section 5304;
       ``(C) comply with the public participation requirements 
     under section 5307(d); and
       ``(D) consult with the appropriate Federal land management 
     agency during the planning process.
       ``(f) Cost Sharing.--
       ``(1) Government's share.--The Secretary, in cooperation 
     with the Secretary of the Interior, shall establish the 
     Government's share of the net project cost to be provided to 
     a qualified participant under this section.
       ``(2) Considerations.--In establishing the Government's 
     share of the net project cost to be provided under this 
     section, the Secretary shall consider--
       ``(A) visitation levels and the revenue derived from user 
     fees in the eligible area in which the qualified project is 
     carried out;
       ``(B) the extent to which the qualified participant 
     coordinates with a public transportation authority or private 
     entity engaged in public transportation;
       ``(C) private investment in the qualified project, 
     including the provision of contract services, joint 
     development activities, and the use of innovative financing 
     mechanisms;
       ``(D) the clear and direct benefit to the qualified 
     participant; and
       ``(E) any other matters that the Secretary considers 
     appropriate to carry out this section.
       ``(3) Special rule.--Notwithstanding any other provision of 
     law, funds appropriated to any Federal land management agency 
     may be counted toward the remainder of the net project cost.
       ``(g) Selection of Qualified Projects.--
       ``(1) In general.--The Secretary of the Interior, after 
     consultation with and in cooperation with the Secretary, 
     shall determine the final selection and funding of an annual 
     program of qualified projects in accordance with this 
     section.
       ``(2) Considerations.--In determining whether to include a 
     project in the annual program of qualified projects, the 
     Secretary of the Interior shall consider--
       ``(A) the justification for the qualified project, 
     including the extent to which the qualified project would 
     conserve resources, prevent or mitigate adverse impact, and 
     enhance the environment;
       ``(B) the location of the qualified project, to ensure that 
     the selected qualified projects--
       ``(i) are geographically diverse nationwide; and
       ``(ii) include qualified projects in eligible areas located 
     in both urban areas and rural areas;
       ``(C) the size of the qualified project, to ensure that 
     there is a balanced distribution;
       ``(D) the historical and cultural significance of a 
     qualified project;
       ``(E) safety;
       ``(F) the extent to which the qualified project would--
       ``(i) enhance livable communities;
       ``(ii) reduce pollution (including noise pollution, air 
     pollution, and visual pollution);
       ``(iii) reduce congestion; and
       ``(iv) improve the mobility of people in the most efficient 
     manner; and
       ``(G) any other matters that the Secretary of the Interior 
     considers appropriate to carry out this section, including--
       ``(i) visitation levels;
       ``(ii) the use of innovative financing or joint development 
     strategies; and
       ``(iii) coordination with gateway communities.
       ``(h) Qualified Projects Carried Out in Advance.--
       ``(1) In general.--When a qualified participant carries out 
     any part of a qualified project without assistance under this 
     section in accordance with all applicable procedures and 
     requirements, the Secretary, in consultation with the 
     Secretary of the Interior, may pay the share of the net 
     capital project cost of a qualified project if--
       ``(A) the qualified participant applies for the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out that part of the qualified 
     project, the Secretary approves the plans and specifications 
     in the same manner as plans and specifications are approved 
     for other projects assisted under this section.
       ``(2) Financing costs.--
       ``(A) In general.--The cost of carrying out part of a 
     qualified project under paragraph (1) includes the amount of 
     interest earned and payable on bonds issued by a State or 
     local governmental authority, to the extent that proceeds of 
     the bond are expended in carrying out that part.
       ``(B) Limitation on amount of interest.--The rate of 
     interest under this paragraph may not exceed the most 
     favorable rate reasonably available for the qualified project 
     at the time of borrowing.
       ``(C) Certification.--The qualified participant shall 
     certify, in a manner satisfactory to the Secretary, that the 
     qualified participant has exercised reasonable diligence in 
     seeking the most favorable interest rate.
       ``(i) Relationship to Other Laws.--
       ``(1) Section 5307.--A qualified participant under this 
     section shall be subject to the requirements of sections 5307 
     and 5333(a) to the extent the Secretary determines to be 
     appropriate.
       ``(2) Other requirements.--A qualified participant under 
     this section shall be subject to any other requirements that 
     the Secretary determines to be appropriate to carry out this 
     section, including requirements for the distribution of 
     proceeds on disposition of real property and equipment 
     resulting from a qualified project assisted under this 
     section.
       ``(3) Project management plan.--If the amount of assistance 
     anticipated to be required for a qualified project under this 
     section is not less than $25,000,000--
       ``(A) the qualified project shall, to the extent the 
     Secretary considers appropriate, be carried out through a 
     full funding grant agreement in accordance with section 
     5309(g); and
       ``(B) the qualified participant shall prepare a project 
     management plan in accordance with section 5327(a).
       ``(j) Asset Management.--The Secretary, in consultation 
     with the Secretary of the Interior, may transfer the interest 
     of the Department of Transportation in, and control over, all 
     facilities and equipment acquired under this section to a 
     qualified participant for use and disposition in accordance 
     with any property management regulations that the Secretary 
     determines to be appropriate.
       ``(k) Coordination of Research and Deployment of New 
     Technologies.--
       ``(1) Grants and other assistance.--The Secretary, in 
     cooperation with the Secretary of the Interior, may 
     undertake, or make grants, cooperative agreements, contracts 
     (including agreements with departments, agencies, and 
     instrumentalities of the Federal Government) or other 
     agreements for research, development, and deployment of new 
     technologies in eligible areas that will--
       ``(A) conserve resources;
       ``(B) prevent or mitigate adverse environmental impact;
       ``(C) improve visitor mobility, accessibility, and 
     enjoyment; and
       ``(D) reduce pollution (including noise pollution and 
     visual pollution).
       ``(2) Information.--The Secretary may request and receive 
     appropriate information from any source.
       ``(3) Funding.--Grants, cooperative agreements, contracts, 
     and other agreements under paragraph (1) shall be awarded 
     from amounts allocated under subsection (d)(1).
       ``(l) Innovative Financing.--A qualified project receiving 
     financial assistance under this section shall be eligible for 
     funding through a

[[Page H7334]]

     State infrastructure bank or other innovative financing 
     mechanism available to finance an eligible project under this 
     chapter.
       ``(m) Reports.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall annually submit a report on 
     the allocation of amounts made available to assist qualified 
     projects under this section to--
       ``(A) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(B) the Committee on Transportation and Infrastructure of 
     the House of Representatives; and
       ``(C) the Committee on Resources of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate.
       ``(2) Annual reports.--The report required under paragraph 
     (1) shall be included in the report submitted under section 
     5309(k)(1).''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5320 and 
     inserting the following:

``5320. Alternative transportation in parks and public lands.''.

     SEC. 3022. HUMAN RESOURCES PROGRAMS.

       Section 5322 is amended--
       (1) by inserting ``(a) In General.--'' before ``The 
     Secretary''; and
       (2) by adding at the end the following:
       ``(b) Fellowships.--
       ``(1) Authority to make grants.--The Secretary may make 
     grants to States, local governmental authorities, and 
     operators of public transportation systems to provide 
     fellowships to train personnel employed in managerial, 
     technical, and professional positions in the public 
     transportation field.
       ``(2) Terms.--
       ``(A) Period of training.--A fellowship under this 
     subsection may be for not more than one year of training in 
     an institution that offers a program applicable to the public 
     transportation industry.
       ``(B) Selection of individuals.--A recipient of a grant for 
     a fellowship under this subsection shall select an individual 
     on the basis of demonstrated ability and for the contribution 
     the individual reasonably can be expected to make to an 
     efficient public transportation operation.
       ``(C) Amount.--A grant for a fellowship under this 
     subsection may not be more than the lesser of $65,000 or 75 
     percent of the sum of--
       ``(i) tuition and other charges to the fellowship 
     recipient;
       ``(ii) additional costs incurred by the training 
     institution and billed to the grant recipient; and
       ``(iii) the regular salary of the fellowship recipient for 
     the period of the fellowship to the extent the salary is 
     actually paid or reimbursed by the grant recipient.''.

     SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE.

       (a) Interests in Property.--Section 5323(a) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) In general.--Financial assistance provided under this 
     chapter to a State or a local governmental authority may be 
     used to acquire an interest in, or to buy property of, a 
     private company engaged in public transportation, for a 
     capital project for property acquired from a private company 
     engaged in public transportation after July 9, 1964, or to 
     operate a public transportation facility or equipment in 
     competition with, or in addition to, transportation service 
     provided by an existing public transportation company, only 
     if--
       ``(A) the Secretary determines that such financial 
     assistance is essential to a program of projects required 
     under sections 5303, 5304, and 5306;
       ``(B) the Secretary determines that the program provides 
     for the participation of private companies engaged in public 
     transportation to the maximum extent feasible; and
       ``(C) just compensation under State or local law will be 
     paid to the company for its franchise or property.''; and
       (2) in paragraph (2) by striking ``(2) A governmental 
     authority'' and inserting the following:
       ``(2) Limitation.--A governmental authority''.
       (b) Notice and Public Hearing.--Section 5323(b) is amended 
     to read as follows:
       ``(b) Notice and Public Hearing.--
       ``(1) In general.--For a capital project that will 
     substantially affect a community, or the public 
     transportation service of a community, an applicant shall--
       ``(A) provide an adequate opportunity for public review and 
     comment on the project;
       ``(B) after providing notice, hold a public hearing on the 
     project if the project affects significant economic, social, 
     or environmental interests;
       ``(C) consider the economic, social, and environmental 
     effects of the project; and
       ``(D) find that the project is consistent with official 
     plans for developing the community.
       ``(2) Notice.--Notice of a hearing under this subsection--
       ``(A) shall include a concise description of the proposed 
     project; and
       ``(B) shall be published in a newspaper of general 
     circulation in the geographic area the project will serve.
       ``(3) Application requirements.--An application for a grant 
     under this chapter for a capital project described in 
     paragraph (1) shall include--
       ``(A) a certification that the applicant has complied with 
     the requirements of this subsection; and
       ``(B) in the environmental record for the project, evidence 
     that the applicant has complied with the requirements of this 
     subsection.''.
       (c) Fares not Required.--Section 5323(c) is amended to read 
     as follows:
       ``(c) Fares not Required.--This chapter does not require 
     that elderly individuals and individuals with disabilities be 
     charged a fare.''.
       (d) Condition on Charter Bus Transportation Service.--
     Section 5323(d) is amended--
       (1) by striking ``(1) Financial assistance'' and inserting 
     the following:
       ``(1) Agreements.--Financial assistance''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Violations.--
       ``(A) Investigations.--On receiving a complaint about a 
     violation of the agreement required under paragraph (1), the 
     Secretary shall investigate and decide whether a violation 
     has occurred.
       ``(B) Enforcement of agreements.--If the Secretary decides 
     that a violation has occurred, the Secretary shall correct 
     the violation under terms of the agreement.
       ``(C) Additional remedies.--In addition to any remedy 
     specified in the agreement, the Secretary shall bar a 
     recipient or an operator from receiving Federal transit 
     assistance in an amount the Secretary considers appropriate 
     if the Secretary finds a pattern of violations of the 
     agreement.''.
       (e) Bond Proceeds Eligible for Local Share.--Section 
     5323(e) is amended to read as follows:
       ``(e) Bond Proceeds Eligible for Local Share.--
       ``(1) Use as local matching funds.--Notwithstanding any 
     other provision of law, a recipient of assistance under 
     section 5307 or 5309 may use the proceeds from the issuance 
     of revenue bonds as part of the local matching funds for a 
     capital project.
       ``(2) Maintenance of effort.--The Secretary shall approve 
     of the use of the proceeds from the issuance of revenue bonds 
     for the remainder of the net project cost only if the 
     Secretary finds that the aggregate amount of financial 
     support for public transportation in the urbanized area 
     provided by the State and affected local governmental 
     authorities during the next 3 fiscal years, as programmed in 
     the State transportation improvement program under section 
     5304, is not less than the aggregate amount provided by the 
     State and affected local governmental authorities in the 
     urbanized area during the preceding 3 fiscal years.
       ``(3) Debt service reserve.--The Secretary may reimburse an 
     eligible recipient for deposits of bond proceeds in a debt 
     service reserve that the recipient establishes pursuant to 
     section 5302(a)(1)(K) from amounts made available to the 
     recipient under section 5309.
       ``(4) Pilot program for urbanized areas.--
       ``(A) In general.--The Secretary shall establish a pilot 
     program to reimburse not to exceed 10 eligible recipients for 
     deposits of bond proceeds in a debt service reserve that the 
     recipient establishes pursuant to section 5302(a)(1)(K) from 
     amounts made available to the recipient under section 5307.
       ``(B) Report.--Not later than July 31, 2008, the Secretary 
     shall submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report on 
     the status and effectiveness of the pilot program established 
     under subparagraph (A).''.
       (f) Schoolbus Transportation.--Section 5323(f) is amended--
       (1) by striking ``(1) Financial assistance'' and inserting 
     the following:
       ``(1) Agreements.--Financial assistance'';
       (2) in paragraph (1) by moving subparagraphs (A), (B), and 
     (C) 2 ems to the right; and
       (3) by striking paragraph (2) and inserting the following:
       ``(2) Violations.--If the Secretary finds that an 
     applicant, governmental authority, or publicly owned operator 
     has violated the agreement required under paragraph (1), the 
     Secretary shall bar a recipient or an operator from receiving 
     Federal transit assistance in an amount the Secretary 
     considers appropriate.''.
       (g) Buying Buses Under Other Laws.--Section 5323(g) is 
     amended by striking ``103(e)(4) and 142(a) or (c)'' each 
     place it appears and inserting ``133 and 142''.
       (h) Government's Share of Costs for Certain Projects.--
     Section 5323(i) is amended--
       (1) in the subsection heading by striking ``Government'' 
     and inserting ``Government's'';
       (2) by striking ``A grant'' and inserting the following:
       ``(1) Equipment for ada and clean air act compliance.--A 
     grant'';
       (3) by inserting ``or facilities'' after ``equipment'' each 
     place it appears; and
       (4) by adding at the end the following:
       ``(2) Certain state owned railroads.--The Government share 
     for financial assistance under this chapter to a State-owned 
     railroad (as defined in section 603 of the Rail Safety and 
     Service Improvement Act of 1982 (45 U.S.C. 1202)) shall be 
     the same as the Government share under section 120(b) of 
     title 23 for Federal-aid highway funds apportioned to the 
     State in which the railroad operates.''.
       (i) Buy America.--
       (1) Public interest waiver.--Section 5323(j) is amended--
       (A) by redesignating paragraphs (3) through (7) as 
     paragraphs (4) through (8), respectively; and
       (B) by inserting after paragraph (2) the following:
       ``(3) Written justification for public interest waiver.--
     When issuing a waiver based on a public interest 
     determination under paragraph (2)(A), the Secretary shall 
     issue a detailed written justification as to why the waiver 
     is in the public interest. The Secretary shall publish such 
     justification in the Federal Register and provide the public 
     with a reasonable period of time for notice and comment.''.

[[Page H7335]]

       (2) Ineligibility for contracts.--Section 5323(j)(6) (as so 
     redesignated) is amended by striking ``Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240, 
     105 Stat. 1914)'' and inserting ``Federal Public 
     Transportation Act of 2005''.
       (3) Administrative review.--Section 5323(j) is amended by 
     adding at the end the following:
       ``(9) Administrative review.--A party adversely affected by 
     an agency action under this subsection shall have the right 
     to seek review under section 702 of title 5.''.
       (4) Repeal of general waiver.--Subsections (b) and (c) of 
     Appendix A of section 661.7 of title 49, Code of Federal 
     Regulations, shall cease to be in effect beginning on the 
     date of enactment of this Act.
       (5) Rulemaking.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall issue a final rule 
     on implementation of the requirements of section 5323(j) of 
     title 49, United States Code (in this paragraph referred to 
     as the ``Buy America requirements''). The purposes of the 
     regulations shall be as follows:
       (A) Microprocessor waiver.--To clarify that any waiver from 
     the Buy America requirements issued under section 5323(j)(2) 
     of such title for a microprocessor, computer, or 
     microcomputer applies only to a device used solely for the 
     purpose of processing or storing data and does not extend to 
     a product containing a microprocessor, computer, or 
     microcomputer.
       (B) Definitions.--To define the terms ``end product'', 
     ``negotiated procurement'', and ``contractor'' for purposes 
     of part 661 of title 49, Code of Federal Regulations. In 
     defining the terms, the Secretary shall develop a list of 
     representative items that are subject to the Buy America 
     requirements, and shall address the procurement of systems 
     under the definition to ensure that major system procurements 
     are not used to circumvent the Buy America requirements.
       (C) Post-award waivers.--To permit a grantee to request a 
     non-availability waiver from the Buy America requirements 
     under section 661.7c of title 49, Code of Federal 
     Regulations, after contract award in any case in which the 
     contractor has made a certification of compliance with the 
     requirements in good faith.
       (D) Certification under negotiated procurement process.--In 
     any case in which a negotiated procurement process is used, 
     compliance with the Buy America requirements shall be 
     determined on the basis of the certification submitted with 
     the final offer.
       (j) Relationship to Other Laws.--Section 5323(l) is amended 
     to read as follows:
       ``(l) Relationship to Other Laws.--Section 1001 of title 18 
     applies to a certificate, submission, or statement provided 
     under this chapter. The Secretary may terminate financial 
     assistance under this chapter and seek reimbursement 
     directly, or by offsetting amounts, available under this 
     chapter if the Secretary determines that a recipient of such 
     financial assistance has made a false or fraudulent statement 
     or related act in connection with a Federal transit 
     program.''.
       (k) Preaward and Postdelivery Review of Rolling Stock 
     Purchases.--Section 5323(m) is amended by adding at the end 
     the following: ``Rolling stock procurements of 20 vehicles or 
     fewer made for the purpose of serving other than urbanized 
     areas and urbanized areas with populations of 200,000 or 
     fewer shall be subject to the same requirements as 
     established for procurements of 10 or fewer buses under the 
     post-delivery purchaser's requirements certification process 
     under section 663.37(c) of title 49, Code of Federal 
     Regulations.''.
       (l) Grant Requirements.--Section 5323(o) is amended by 
     striking ``the Transportation Infrastructure Finance and 
     Innovation Act of 1998'' and inserting ``chapter 6 (other 
     than section 609) of title 23''.
       (m) Alternative Fueling Facilities.--Section 5323 is 
     amended by adding at the end the following:
       ``(p) Alternative Fueling Facilities.--A recipient of 
     assistance under this chapter may allow the incidental use of 
     Federally funded alternative fueling facilities and equipment 
     by nontransit public entities and private entities if--
       ``(1) the incidental use does not interfere with the 
     recipient's public transportation operations;
       ``(2) all costs related to the incidental use are fully 
     recaptured by the recipient from the nontransit public entity 
     or private entity;
       ``(3) the recipient uses revenues received from the 
     incidental use in excess of costs for planning, capital, and 
     operating expenses that are incurred in providing public 
     transportation; and
       ``(4) private entities pay all applicable excise taxes on 
     fuel.''.

     SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

       (a) In General.--Section 5324 is amended to read as 
     follows:

     ``Sec. 5324. Special provisions for capital projects

       ``(a) Relocation and Real Property Requirements.--The 
     Uniform Relocation Assistance and Real Property Acquisition 
     Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to 
     financial assistance for capital projects under this chapter.
       ``(b) Consideration of Economic, Social, and Environmental 
     Interests.--
       ``(1) Cooperation and consultation.--In carrying out the 
     policy of section 5301(e), the Secretary shall cooperate and 
     consult with the Secretary of the Interior and the 
     Administrator of the Environmental Protection Agency on each 
     project that may have a substantial impact on the 
     environment.
       ``(2) Public participation in environmental reviews.--In 
     performing environmental reviews, the Secretary shall review 
     each transcript of a hearing submitted under section 5323(b) 
     to establish that an adequate opportunity to present views 
     was given to all parties having a significant economic, 
     social, or environmental interest in the project, and that 
     the project application includes a record of--
       ``(A) the environmental impact of the proposal;
       ``(B) adverse environmental effects that cannot be avoided;
       ``(C) alternatives to the proposal; and
       ``(D) irreversible and irretrievable impacts on the 
     environment.
       ``(3) Approval of applications for assistance.--
       ``(A) Findings by the secretary.--The Secretary may approve 
     an application for financial assistance for a capital project 
     in accordance with this chapter only if the Secretary makes 
     written findings, after reviewing the application and the 
     transcript of any hearing held before a State or local 
     governmental authority under section 5323(b), that--
       ``(i) an adequate opportunity to present views was given to 
     all parties having a significant economic, social, or 
     environmental interest;
       ``(ii) the preservation and enhancement of the environment 
     and the interest of the community in which the project is 
     located were considered; and
       ``(iii) no adverse environmental effect is likely to result 
     from the project, or no feasible and prudent alternative to 
     the effect exists and all reasonable steps have been taken to 
     minimize the effect.
       ``(B) Hearing.--If a hearing has not been conducted or the 
     Secretary decides that the record of the hearing is 
     inadequate for making the findings required by this 
     subsection, the Secretary shall conduct a hearing on an 
     environmental issue raised by the application after giving 
     adequate notice to interested persons.
       ``(C) Availability of findings.--The Secretary's findings 
     under subparagraph (A) shall be made a matter of public 
     record.
       ``(c) Railroad Corridor Preservation.--
       ``(1) In general.--The Secretary may assist an applicant to 
     acquire railroad right-of-way before the completion of the 
     environmental reviews for any project that may use the right-
     of-way if the acquisition is otherwise permitted under 
     Federal law. The Secretary may establish restrictions on such 
     an acquisition as the Secretary determines to be necessary 
     and appropriate.
       ``(2) Environmental reviews.--Railroad right-of-way 
     acquired under this subsection may not be developed in 
     anticipation of the project until all required environmental 
     reviews for the project have been completed.''.
       (b) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5324 and 
     inserting the following:

``5324. Special provisions for capital projects.''.

     SEC. 3025. CONTRACT REQUIREMENTS.

       (a) In General.--Section 5325 is amended to read as 
     follows:

     ``Sec. 5325. Contract requirements

       ``(a) Competition.--Recipients of assistance under this 
     chapter shall conduct all procurement transactions in a 
     manner that provides full and open competition as determined 
     by the Secretary.
       ``(b) Architectural, Engineering, and Design Contracts.--
       ``(1) Procedures for awarding contract.--A contract or 
     requirement for program management, architectural 
     engineering, construction management, a feasibility study, 
     and preliminary engineering, design, architectural, 
     engineering, surveying, mapping, or related services for a 
     project for which Federal assistance is provided under this 
     chapter shall be awarded in the same way as a contract for 
     architectural and engineering services is negotiated under 
     chapter 11 of title 40 or an equivalent qualifications-based 
     requirement of a State.
       ``(2) Effect of state laws.--Paragraph (1) does not apply 
     to the extent a State has adopted by law, before the date of 
     enactment of the Federal Public Transportation Act of 2005, 
     an equivalent State qualifications-based requirement for 
     contracting for architectural, engineering, and design 
     services.
       ``(3) Additional requirements.--When awarding a contract 
     described in paragraph (1), recipients of assistance under 
     this chapter shall comply with the following requirements:
       ``(A) Performance of audits.--Any contract or subcontract 
     awarded under this chapter shall be performed and audited in 
     compliance with cost principles contained in part 31 of title 
     48, Code of Federal Regulations (commonly known as the 
     Federal Acquisition Regulation).
       ``(B) Indirect cost rates.--A recipient of funds under a 
     contract or subcontract awarded under this chapter shall 
     accept indirect cost rates established in accordance with the 
     Federal Acquisition Regulation for 1-year applicable 
     accounting periods by a cognizant Federal or State government 
     agency, if such rates are not currently under dispute.
       ``(C) Application of rates.--After a firm's indirect cost 
     rates are accepted under subparagraph (B), the recipient of 
     the funds shall apply such rates for the purposes of contract 
     estimation, negotiation, administration, reporting, and 
     contract payment, and shall not be limited by administrative 
     or de facto ceilings.
       ``(D) Prenotification; confidentiality of data.--A 
     recipient requesting or using the cost and rate data 
     described in subparagraph (C) shall notify any affected firm 
     before such request or use. Such data shall be confidential 
     and shall not be accessible or provided by the group of 
     agencies sharing cost data under this subparagraph, except by 
     written permission of the audited firm. If prohibited by law, 
     such cost and rate data shall not be disclosed under any 
     circumstances.
       ``(c) Efficient Procurement.--A recipient may award a 
     procurement contract under this chapter to other than the 
     lowest bidder if the award furthers an objective consistent 
     with the

[[Page H7336]]

     purposes of this chapter, including improved long-term 
     operating efficiency and lower long-term costs.
       ``(d) Design-Build Projects.--
       ``(1) Term defined.--In this subsection, the term `design-
     build project'--
       ``(A) means a project under which a recipient enters into a 
     contract with a seller, firm, or consortium of firms to 
     design and build a public transportation system, or an 
     operable segment of such system, that meets specific 
     performance criteria; and
       ``(B) may include an option to finance, or operate for a 
     period of time, the system or segment or any combination of 
     designing, building, operating, or maintaining such system or 
     segment.
       ``(2) Financial assistance for capital costs.--Federal 
     financial assistance under this chapter may be provided for 
     the capital costs of a design-build project after the 
     recipient complies with Government requirements.
       ``(e) Multiyear Rolling Stock.--
       ``(1) Contracts.--A recipient procuring rolling stock with 
     Government financial assistance under this chapter may make a 
     multiyear contract to buy the rolling stock and replacement 
     parts under which the recipient has an option to buy 
     additional rolling stock or replacement parts for not more 
     than 5 years after the date of the original contract.
       ``(2) Cooperation among recipients.--The Secretary shall 
     allow at least 2 recipients to act on a cooperative basis to 
     procure rolling stock in compliance with this subsection and 
     other Government procurement requirements.
       ``(f) Acquiring Rolling Stock.--A recipient of financial 
     assistance under this chapter may enter into a contract to 
     expend that assistance to acquire rolling stock--
       ``(1) based on--
       ``(A) initial capital costs; or
       ``(B) performance, standardization, life cycle costs, and 
     other factors; or
       ``(2) with a party selected through a competitive 
     procurement process.
       ``(g) Examination of Records.--Upon request, the Secretary 
     and the Comptroller General, or any of their representatives, 
     shall have access to and the right to examine and inspect all 
     records, documents, and papers, including contracts, related 
     to a project for which a grant is made under this chapter.
       ``(h) Grant Prohibition.--A grant awarded under this 
     chapter or the Federal Public Transportation Act of 2005 may 
     not be used to support a procurement that uses an 
     exclusionary or discriminatory specification.
       ``(i) Bus Dealer Requirements.--No State law requiring 
     buses to be purchased through in-State dealers shall apply to 
     vehicles purchased with a grant under this chapter.
       ``(j) Awards to Responsible Contractors.--
       ``(1) In general.--Federal financial assistance under this 
     chapter may be provided for contracts only if a recipient 
     awards such contracts to responsible contractors possessing 
     the ability to successfully perform under the terms and 
     conditions of a proposed procurement.
       ``(2) Criteria.--Before making an award to a contractor 
     under paragraph (1), a recipient shall consider--
       ``(A) the integrity of the contractor;
       ``(B) the contractor's compliance with public policy;
       ``(C) the contractor's past performance, including the 
     performance reported in the Contractor Performance Assessment 
     Reports required under section 5309(l)(2); and
       ``(D) the contractor's financial and technical 
     resources.''.
       (b) Conforming Amendment.--Section 5326 and the item 
     relating to section 5326 in the analysis for chapter 53 are 
     repealed.

     SEC. 3026. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

       (a) Project Management Plan Requirements.--Section 5327(a) 
     is amended--
       (1) in paragraph (11) by striking ``and'' at the end;
       (2) in paragraph (12) by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(13) safety and security management.''.
       (b) Limitations.--Section 5327(c) is amended to read as 
     follows:
       ``(c) Limitations.--
       ``(1) Limitations on use of available amounts.--Of the 
     amounts made available to carry out this chapter for a fiscal 
     year, the Secretary may use not more than the following 
     amounts to make contracts for the activities described in 
     paragraph (2):
       ``(A) 0.5 percent of amounts made available to carry out 
     section 5305.
       ``(B) 0.75 percent of amounts made available to carry out 
     section 5307.
       ``(C) 1 percent of amounts made available to carry out 
     section 5309.
       ``(D) 0.5 percent of amounts made available to carry out 
     section 5310.
       ``(E) 0.5 percent of amounts made available to carry out 
     section 5311.
       ``(F) 0.5 percent of amounts made available to carry out 
     section 5320.
       ``(2) Activities.--Paragraph (1) shall apply to the 
     following:
       ``(A) Activities to oversee the construction of a major 
     project.
       ``(B) Activities to review and audit the safety and 
     security, procurement, management, and financial compliance 
     of a recipient or subrecipient of funds under sections 5305, 
     5307, 5309, 5310, 5311, and 5320.
       ``(C) Activities to provide technical assistance to correct 
     deficiencies identified in compliance reviews and audits 
     carried out under this section.
       ``(3) Limitations on applicability.--Subsections (a), (b), 
     and (e) do not apply to contracts under this section for 
     activities described in paragraphs (2)(B) and (2)(C).
       ``(4) Government's share of costs.--The Government shall 
     pay the entire cost of carrying out a contract under this 
     subsection.
       ``(5) Availability of certain funds.--Beginning in fiscal 
     year 2006, funds available under paragraph (1)(C) shall be 
     made available to the Secretary before allocating the funds 
     appropriated to carry out any project under a full funding 
     grant agreement or project construction grant agreement.''.

     SEC. 3027. PROJECT REVIEW.

       Section 5328(a) is amended--
       (1) in paragraph (1) by striking ``(1) When the Secretary 
     of Transportation allows a new fixed guideway project to 
     advance into the alternatives analysis stage of project 
     review, the Secretary shall cooperate with the applicant in'' 
     and inserting the following:
       ``(1) Alternatives analysis.--The Secretary shall cooperate 
     with an applicant undertaking an alternatives analysis 
     required by subsections (d) and (e) of section 5309 in the''; 
     and
       (2) in paragraph (2)--
       (A) by striking ``(2) After'' and inserting the following:
       ``(2) Advancement to preliminary engineering stage.--
     After''; and
       (B) by striking ``is consistent with section 5309(e)'' and 
     inserting ``meets the requirements of subsection (d) or (e) 
     of section 5309'';
       (3) in paragraph (3)--
       (A) by striking ``(3) The Secretary'' and inserting the 
     following:
       ``(3) Record of decision.--The Secretary'';
       (B) by striking ``of construction''; and
       (C) by adding before the period at the end the following: 
     ``if the Secretary determines that the project meets the 
     requirements of subsection (d) or (e) of section 5309''; and
       (4) by striking paragraph (4) and inserting the following:
       ``(4) Funding agreements.--The Secretary shall enter into a 
     full funding grant agreement or project construction grant 
     agreement, as appropriate, between the Government and the 
     project sponsor if the Secretary determines that the project 
     meets the requirements of subsection (d) or (e) of section 
     5309.''.

     SEC. 3028. INVESTIGATIONS OF SAFETY HAZARDS AND SECURITY 
                   RISKS.

       (a) In General.--Section 5329 is amended to read as 
     follows:

     ``Sec. 5329. Investigations of safety hazards and security 
       risks

       ``(a) In General.--The Secretary may conduct investigations 
     into safety hazards and security risks associated with a 
     condition in equipment, a facility, or an operation financed 
     under this chapter to establish the nature and extent of the 
     condition and how to eliminate, mitigate, or correct it.
       ``(b) Submission of Corrective Plan.--If the Secretary 
     establishes that a safety hazard or security risk warrants 
     further protective measures, the Secretary shall require the 
     local governmental authority receiving amounts under this 
     chapter to submit a plan for eliminating, mitigating, or 
     correcting it.
       ``(c) Withholding Financial Assistance.--Financial 
     assistance under this chapter, in an amount to be determined 
     by the Secretary, may be withheld until a plan is approved 
     and carried out.''.
       (b) Public Transportation Security.--
       (1) In general.--Not later than 45 days after the date of 
     enactment of this Act, the Secretary shall execute an annex 
     to the memorandum of understanding between the Secretary and 
     the Secretary of Homeland Security, dated September 28, 2004, 
     to define and clarify the respective roles and 
     responsibilities of the Department of Transportation and the 
     Department of Homeland Security relating to public 
     transportation security.
       (2) Contents.--The annex to be executed under paragraph (1) 
     shall--
       (A) establish a process to develop security standards for 
     public transportation agencies;
       (B) create a method of direct coordination with public 
     transportation agencies on security matters;
       (C) address any other issues determined to be appropriate 
     by the Secretary and the Secretary of Homeland Security; and
       (D) include a formal and permanent mechanism to ensure 
     coordination and involvement by the Department of 
     Transportation, as appropriate, in public transportation 
     security.
       (c) Rulemaking.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary and the Secretary of 
     Homeland Security shall issue jointly final regulations to 
     establish the characteristics of and requirements for public 
     transportation security grants, including funding priorities, 
     eligible activities, methods for awarding grants, and 
     limitations on administrative expenses.
       (d) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5329 and 
     inserting the following:

``5329. Investigations of safety hazards and security risks.''.

     SEC. 3029. STATE SAFETY OVERSIGHT.

       (a) In General.--Section 5330 is amended--
       (1) by striking the section heading and all that follows 
     through subsection (a) and inserting the following:

     ``Sec. 5330. State safety oversight

       ``(a) Application.--This section shall only apply to--
       ``(1) States that have rail fixed guideway public 
     transportation systems that are not subject to regulation by 
     the Federal Railroad Administration; and
       ``(2) States that are designing rail fixed guideway public 
     transportation systems that will not be subject to regulation 
     by the Federal Railroad Administration.'';
       (2) in subsection (d) by striking ``may'' and inserting 
     ``shall ensure uniform safety standards and enforcement or 
     shall''; and

[[Page H7337]]

       (3) by striking subsection (f).
       (b) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5330 and 
     inserting the following:

``5330. State safety oversight.''.

     SEC. 3030. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

       (a) Definitions.--Section 5331(a)(3) is amended by striking 
     the period at the end and inserting the following: ``or 
     section 2303a, 7101(i), or 7302(e) of title 46. The Secretary 
     may also decide that a form of public transportation is 
     covered adequately, for employee alcohol and controlled 
     substances testing purposes, under the alcohol and controlled 
     substance statutes or regulations of an agency within the 
     Department of Transportation or the Coast Guard.''.
       (b) Technical Corrections.--Subsections (b)(1) and (g) of 
     section 5331 are each amended by striking ``or section 
     103(e)(4) of title 23''.
       (c) Regulations.--Section 5331(f) is amended by striking 
     paragraph (3).

     SEC. 3031. EMPLOYEE PROTECTIVE ARRANGEMENTS.

       Section 5333(b) is amended--
       (1) in paragraph (1) by striking ``5318(d), 5323(a)(1), 
     (b), (d), and (e), 5328, 5337, and 5338(b)'' each place it 
     appears and inserting ``5316, 5318, 5323(a)(1), 5323(b), 
     5323(d), 5328, 5337, and 5338(b)''; and
       (2) by adding at the end the following:
       ``(4) Fair and equitable arrangements to protect the 
     interests of employees utilized by the Secretary of Labor for 
     assistance to purchase like-kind equipment or facilities, and 
     grant amendments which do not materially revise or amend 
     existing assistance agreements, shall be certified without 
     referral.
       ``(5) When the Secretary is called upon to issue fair and 
     equitable determinations involving assurances of employment 
     when one private transit bus service contractor replaces 
     another through competitive bidding, such decisions shall be 
     based on the principles set forth in the Department of 
     Labor's decision of September 21, 1994, as clarified by the 
     supplemental ruling of November 7, 1994, with respect to 
     grant NV-90-X021. This paragraph shall not serve as a basis 
     for objections under section 215.3(d) of title 29, Code of 
     Federal Regulations.''.

     SEC. 3032. ADMINISTRATIVE PROCEDURES.

       Section 5334 is amended--
       (1) in subsection (a)--
       (A) in paragraph (9) by striking ``and'' at the end;
       (B) in paragraph (10) by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(11) issue regulations as necessary to carry out the 
     purposes of this chapter.'';
       (2) by striking subsection (i);
       (3) by redesignating subsections (b) through (h) as 
     subsections (c) through (i), respectively;
       (4) by inserting after subsection (a) the following:
       ``(b) Prohibitions Against Regulating Operations and 
     Charges.--
       ``(1) In general.--Except for purposes of national defense 
     or in the event of a national or regional emergency, the 
     Secretary may not regulate the operation, routes, or 
     schedules of a public transportation system for which a grant 
     is made under this chapter, nor may the Secretary regulate 
     the rates, fares, tolls, rentals, or other charges prescribed 
     by any provider of public transportation.
       ``(2) Limitation on statutory construction.--Nothing in 
     this subsection shall be construed to prevent the Secretary 
     from requiring a recipient of funds under this chapter to 
     comply with the terms and conditions of its Federal 
     assistance agreement.''; and
       (5) by striking subsection (c)(4) (as redesignated by 
     paragraph (3) of this subsection) and inserting the 
     following:
       ``(4) The Secretary of Transportation shall comply with 
     this section (except subsection (i)) and sections 5318(e), 
     5323(a)(2), 5325(a), 5325(b), and 5325(f) when proposing or 
     carrying out a regulation governing an activity under this 
     chapter, except for a routine matter or a matter with no 
     significant impact.''; and
       (6) by adding at the end the following:
       ``(k) Notification of Pending Discretionary Grants.--Not 
     less than 3 full business days before announcement of award 
     by the Secretary of any discretionary grant, letter of 
     intent, or full funding grant agreement totaling $1,000,000 
     or more, the Secretary shall notify the Committees on 
     Banking, Housing, and Urban Affairs and Appropriations of the 
     Senate and Committees on Transportation and Infrastructure 
     and Appropriations of the House of Representatives.
       ``(l) Agency Statements.--
       ``(1) In general.--The Administrator of the Federal Transit 
     Administration shall follow applicable rulemaking procedures 
     under section 553 of title 5 before the Federal Transit 
     Administration issues a statement that imposes a binding 
     obligation on recipients of Federal assistance under this 
     chapter.
       ``(2) Binding obligation defined.--In this subsection, the 
     term `binding obligation' means a substantive policy 
     statement, rule, or guidance document issued by the Federal 
     Transit Administration that grants rights, imposes 
     obligations, produces significant effects on private 
     interests, or effects a significant change in existing 
     policy.''.

     SEC. 3033. NATIONAL TRANSIT DATABASE.

       (a) In General.--Section 5335 is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 5335. National transit database'';

       (2) by striking subsection (b); and
       (3) in subsection (a)--
       (A) in paragraph (1), by striking ``(1)''; and
       (B) in paragraph (2), by striking ``(2) The Secretary may 
     make a grant under section 5307 of this title'' and inserting 
     the following:
       ``(b) Reporting and Uniform Systems.--The Secretary may 
     award a grant under section 5307 or 5311''.
       (b) Chapter Analysis.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5335 and 
     inserting the following:

``5335. National transit database.''.

     SEC. 3034. APPORTIONMENTS OF FORMULA GRANTS.

       (a) Apportionments.--Section 5336 is amended--
       (1) by striking subsections (d), (h), and (k);
       (2) by redesignating subsections (e), (f), (g), (i), and 
     (j) as subsections (d), (e), (f), (g), and (h), respectively;
       (3) by adding at the end the following:
       ``(i) Apportionments.--Of the amounts made available for 
     each fiscal year under subsections (a)(1)(C)(vi) and 
     (b)(2)(B) of section 5338--
       ``(1) one percent shall be apportioned, in fiscal year 2006 
     and each fiscal year thereafter, to certain urbanized areas 
     with populations of less than 200,000 in accordance with 
     subsection (j); and
       ``(2) any amount not apportioned under paragraph (1) shall 
     be apportioned to urbanized areas in accordance with 
     subsections (a) through (c).''; and
       (4) in subsection (a) by striking ``Of the amount made 
     available or appropriated under section 5338(a) of this 
     title'' and inserting ``Of the amount apportioned under 
     subsection (i)(2)''.
       (b) Small Transit Intensive Cities Formula.--Section 5336 
     is amended by adding at the end the following:
       ``(j) Small Transit Intensive Cities Formula.--
       ``(1) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Eligible area.--The term `eligible area' means an 
     urbanized area with a population of less than 200,000 that 
     meets or exceeds in one or more performance categories the 
     industry average for all urbanized areas with a population of 
     at least 200,000 but not more than 999,999, as determined by 
     the Secretary in accordance with subsection (c)(2).
       ``(B) Performance category.--The term `performance 
     category' means each of the following:
       ``(i) Passenger miles traveled per vehicle revenue mile.
       ``(ii) Passenger miles traveled per vehicle revenue hour.
       ``(iii) Vehicle revenue miles per capita.
       ``(iv) Vehicle revenue hours per capita.
       ``(v) Passenger miles traveled per capita.
       ``(vi) Passengers per capita.
       ``(2) Apportionment.--
       ``(A) Apportionment formula.--The amount to be apportioned 
     under subsection (i)(1) shall be apportioned among eligible 
     areas in the ratio that--
       ``(i) the number of performance categories for which each 
     eligible area meets or exceeds the industry average in 
     urbanized areas with a population of at least 200,000 but not 
     more than 999,999; bears to
       ``(ii) the aggregate number of performance categories for 
     which all eligible areas meet or exceed the industry average 
     in urbanized areas with a population of at least 200,000 but 
     not more than 999,999.
       ``(B) Data used in formula.--The Secretary shall calculate 
     apportionments under this subsection for a fiscal year using 
     data from the national transit database used to calculate 
     apportionments for that fiscal year under this section.''.
       (c) Study on Incentives in Formula Programs.--Section 5336 
     is amended by adding at the end the following:
       ``(c) Study on Incentives in Formula Programs.--
       ``(1) Study.--The Secretary shall conduct a study to assess 
     the feasibility and appropriateness of developing and 
     implementing an incentive funding system under sections 5307 
     and 5311 for operators of public transportation.
       ``(2) Report.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of the Federal Public Transportation Act of 2005, 
     the Secretary shall submit a report on the results of the 
     study conducted under paragraph (1) to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall include--
       ``(i) an analysis of the availability of appropriate 
     measures to be used as a basis for the distribution of 
     incentive payments;
       ``(ii) the optimal number and size of any incentive 
     programs;
       ``(iii) what types of systems should compete for various 
     incentives;
       ``(iv) how incentives should be distributed; and
       ``(v) the likely effects of the incentive funding 
     system.''.
       (d) Technical Amendments.--Section 5336 is amended--
       (1) in subsection (a) by striking ``of this title'' and 
     inserting ``to carry out section 5307'';
       (2) in paragraph (2) by inserting before the period at the 
     end the following: ``, except that the amount apportioned to 
     the Anchorage urbanized area under subsection (b) shall be 
     available to the Alaska Railroad for any costs related to its 
     passenger operations'';
       (3) in subsection (b)(1) by inserting ``and, beginning in 
     fiscal year 2006, 60 percent of the directional route miles 
     attributable to the Alaska Railroad passenger operations'' 
     after ``recipient''; and
       (4) in subsection (h) by striking ``a grant made under'' 
     each place it appears and inserting ``a grant made with funds 
     apportioned under''.

[[Page H7338]]

     SEC. 3035. APPORTIONMENTS BASED ON FIXED GUIDEWAY FACTORS.

       (a) In General.--Section 5337 is amended--
       (1) by striking the section designation and heading and 
     inserting the following:

     ``Sec. 5337. Apportionment based on fixed guideway factors''; 
       and

       (2) by adding at the end the following:
       ``(f) Adjustment.--For purposes of this section, an 
     urbanized area with a population of 55,997, according to the 
     most recent decennial census, shall be treated as an 
     urbanized area eligible for assistance under section 
     5336(b)(2)(A) to which amounts were apportioned under this 
     section for fiscal year 1997. For the purposes of paragraph 
     (e)(1), the number of fixed guideway revenue vehicle miles of 
     service and number of fixed guideway route miles for that 
     urbanized area as of the date of enactment of the Federal 
     Public Transportation Act of 2005 shall be considered to have 
     been used to determine apportionments for fiscal year 
     1997.''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5337 and 
     inserting the following:

``5337. Apportionment based on fixed guideway factors.''.

     SEC. 3036. AUTHORIZATIONS.

       Section 5338 is amended to read as follows:

     ``Sec. 5338. Authorizations

       ``(a) Fiscal Year 2005.--
       ``(1) Formula grants.--
       ``(A) Trust fund.--For fiscal year 2005, $3,499,927,776 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out sections 5307, 5308, 5310, 
     and 5311 and section 3038 of the Transportation Equity Act 
     for the 21st Century (49 U.S.C. 5310 note).
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there is authorized to be 
     appropriated $499,989,824 for fiscal year 2005 to carry out 
     sections 5307, 5308, 5310, and 5311 and section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note).
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $4,811,150 shall be available to the Alaska Railroad 
     for improvements to its passenger operations under section 
     5307;
       ``(ii) $5,208,000 shall be available to provide over-the-
     road bus accessibility grants under section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note) to operators of intercity, fixed-route over-the-
     road buses;
       ``(iii) $1,686,400 shall be available to provide over-the-
     road bus accessibility grants under section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note) to operators of over-the-road buses providing 
     other than intercity, fixed-route service;
       ``(iv) $94,526,689 shall be available to provide 
     transportation services to elderly individuals and 
     individuals with disabilities under section 5310;
       ``(v) $250,889,588 shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       ``(vi) $3,593,195,773 shall be available to provide 
     financial assistance for urbanized areas under section 5307; 
     and
       ``(vii) $49,600,000 shall be available to carry out the 
     clean fuels program under section 5308.
       ``(2) Job access and reverse commute.--
       ``(A) Trust fund.--For fiscal year 2005, $108,500,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 3037 of the Transportation 
     Equity Act for the 21st Century (49 U.S.C. 5309 note).
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there is authorized to be 
     appropriated $15,500,000 for fiscal year 2005 to carry out 
     section 3037 of the Transportation Equity Act of the 21st 
     Century (49 U.S.C. 5309 note).
       ``(3) Capital program grants.--
       ``(A) Trust fund.--For fiscal year 2005, $2,898,100,224 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out section 5309.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there is authorized to be 
     appropriated $414,014,176 for fiscal year 2005 to carry out 
     sections 5308, 5309, and 5318 and section 3015(b) of the 
     Transportation Equity Act for the 21st Century (112 Stat. 
     361).
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $49,600,000 shall be available to carry out the clean 
     fuels program under section 5308;
       ``(ii) $669,600,000 shall be available for capital projects 
     to replace, rehabilitate, and purchase bus and related 
     equipment and to construct bus-related facilities under 
     section 5309;
       ``(iii) $1,204,684,800 shall be available for fixed 
     guideway modernization under section 5309;
       ``(iv) $1,437,829,600 shall be available for capital 
     projects for new fixed guideway systems and extensions to 
     existing fixed guideway systems under section 5309;
       ``(v) $10,213,632 shall be available for capital projects 
     in Alaska and Hawaii under section 5309;
       ``(vi) $2,976,000 shall be available to carry out bus 
     testing under section 5318; and
       ``(vii) $4,811,200 shall be available to carry out the fuel 
     cell bus and bus facilities program under section 3015(b) of 
     the Transportation Equity Act for the 21st Century (112 Stat. 
     361).
       ``(4) Planning.--
       ``(A) Trust fund.--For fiscal year 2005, $63,364,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5303, 5304, 5305, and 
     5313(b), as in effect on the day before the date of enactment 
     of the Federal Public Transportation Act of 2005.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there is authorized to be 
     appropriated $9,052,000 for fiscal year 2005 to carry out 
     sections 5303, 5304, 5305, and 5313(b), as in effect on the 
     day before the date of enactment of the Federal Public 
     Transportation Act of 2005.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) 82.72 percent shall be allocated for metropolitan 
     planning under section 5305; and
       ``(ii) 17.28 percent shall be allocated for State planning 
     under section 5305.
       ``(5) Research.--
       ``(A) Trust fund.--For fiscal year 2005, $47,740,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5311(b)(2), 5312, 5313(a), 
     5314, 5315, and 5322.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there is authorized to be 
     appropriated $6,820,000 for fiscal year 2005 to carry out 
     sections 5311(b)(2), 5312, 5313(a), 5314, 5315, and 5322.
       ``(C) Allocation of funds.--Of the funds made available or 
     appropriated under this paragraph--
       ``(i) not less than $3,968,000 shall be available to carry 
     out programs under the National Transit Institute under 
     section 5315, of which not more than $992,000 shall be 
     available to carry out section 5315(a)(16);
       ``(ii) not less than $5,208,000 shall be available to 
     provide rural transportation assistance under section 
     5311(b)(2);
       ``(iii) not less than $8,184,000 shall be available to 
     carry out transit cooperative research programs under section 
     5313(a);
       ``(iv) not less than $2,976,000 shall be available to carry 
     out Project Action under section 5312; and
       ``(v) the remainder shall be available to carry out 
     national research and technology programs under sections 
     5312, 5314, and 5322.
       ``(6) University transportation research.--
       ``(A) Trust fund.--For fiscal year 2005, $5,208,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5505.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there is authorized to be 
     appropriated $744,000 for fiscal year 2005 to carry out 
     sections 5505.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $1,984,000 shall be available for grants under 
     section 5505(d) to the center identified in section 
     5505(j)(4)(A), as in effect on the day before the date of 
     enactment of the Federal Public Transportation Act of 2005; 
     and
       ``(ii) $1,984,000 shall be available for grants under 
     section 5505(d) to the center identified in section 
     5505(j)(4)(F), as in effect on the day before the date of 
     enactment of the Federal Public Transportation Act of 2005.
       ``(D) Special rule.--Nothing in this paragraph shall be 
     construed to limit the transportation research conducted by 
     the centers receiving financial assistance under this 
     section.
       ``(7) Administration.--
       ``(A) Trust fund.--For fiscal year 2005, $67,704,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5334.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there is authorized to be 
     appropriated $9,672,000 for fiscal year 2005 to carry out 
     section 5334.
       ``(8) Availability of amounts.--Amounts made available or 
     appropriated under paragraphs (1) through (6) shall remain 
     available until expended.
       ``(b) Formula and Bus Grants.--
       ``(1) In general.--There shall be available from the Mass 
     Transit Account of the Highway Trust Fund to carry out 
     sections 5305, 5307, 5308, 5309, 5310, 5311, 5316, 5317, 
     5320, 5335, 5339, and 5340 and section 3038 of the Federal 
     Transit Act of 1998 (112 Stat. 387 et seq.)--
       ``(A) $6,979,931,000 for fiscal year 2006;
       ``(B) $7,262,775,000 for fiscal year 2007;
       ``(C) $7,872,893,000 for fiscal year 2008; and
       ``(D) $8,360,565,000 for fiscal year 2009.
       ``(2) Allocation of funds.--Of the amounts made available 
     under paragraph (1)--
       ``(A) $95,000,000 for fiscal year 2006, $99,000,000 for 
     fiscal year 2007, $107,000,000 for fiscal year 2008, and 
     $113,500,000 for fiscal year 2009 shall be available to carry 
     out section 5305;
       ``(B) $3,466,681,000 for fiscal year 2006, $3,606,175,000 
     for fiscal year 2007, $3,910,843,000 for fiscal year 2008, 
     and $4,160,365,000 for fiscal year 2009 shall be allocated in 
     accordance with section 5336 to provide financial assistance 
     for urbanized areas under section 5307;
       ``(C) $43,000,000 for fiscal year 2006, $45,000,000 for 
     fiscal year 2007, $49,000,000 for fiscal year 2008, and 
     $51,500,000 for fiscal year 2009 shall be available to carry 
     out section 5308;
       ``(D) $1,391,000,000 for fiscal year 2006, $1,448,000,000 
     for fiscal year 2007, $1,570,000,000 for fiscal year 2008, 
     and $1,666,500,000 for fiscal year 2009 shall be allocated in 
     accordance with section 5337 to provide financial assistance 
     under section 5309(m)(2)(B); and
       ``(E) $822,250,000 for fiscal year 2006, $855,500,000 for 
     fiscal year 2007, $927,750,000 for fiscal year 2008, and 
     $984,000,000 for fiscal year 2009 shall be available to carry 
     out section 5309(m)(2)(C).
       ``(F) $112,000,000 for fiscal year 2006, $117,000,000 for 
     fiscal year 2007, $127,000,000 for fiscal year 2008, and 
     $133,500,000 for fiscal year 2009 shall be available to 
     provide financial assistance for services for elderly persons 
     and persons with disabilities under section 5310;
       ``(G) $388,000,000 for fiscal year 2006, $404,000,000 for 
     fiscal year 2007, $438,000,000 for

[[Page H7339]]

     fiscal year 2008, and $465,000,000 for fiscal year 2009 shall 
     be available to provide financial assistance for other than 
     urbanized areas under section 5311;
       ``(H) $138,000,000 for fiscal year 2006, $144,000,000 for 
     fiscal year 2007, $156,000,000 for fiscal year 2008, and 
     $164,500,000 for fiscal year 2009 shall be available to carry 
     out section 5316;
       ``(I) $78,000,000 for fiscal year 2006, $81,000,000 for 
     fiscal year 2007, $87,500,000 for fiscal year 2008, and 
     $92,500,000 for fiscal year 2009 shall be available to carry 
     out section 5317;
       ``(J) $22,000,000 for fiscal year 2006, $23,000,000 for 
     fiscal year 2007, $25,000,000 for fiscal year 2008, and 
     $26,900,000 for fiscal year 2009 shall be available to carry 
     out section 5320;
       ``(K) $3,500,000 in fiscal year 2006; $3,500,000 in fiscal 
     year 2007; $3,500,000 in fiscal year 2008; and $3,500,000 in 
     fiscal year 2009 shall be available to carry out section 
     5335;
       ``(L) $25,000,000 in fiscal year 2006; $25,000,000 in 
     fiscal year 2007; $25,000,000 in fiscal year 2008; and 
     $25,000,000 in fiscal year 2009 shall be available to carry 
     out section 5339;
       ``(M) $388,000,000 for fiscal year 2006, $404,000,000 for 
     fiscal year 2007, $438,000,000 for fiscal year 2008, and 
     $465,000,000 for fiscal year 2009 shall be allocated in 
     accordance with section 5340 to provide financial assistance 
     for urbanized areas under section 5307 and other than 
     urbanized areas under section 5311; and
       ``(N) $7,500,000 for fiscal year 2006, $7,600,000 for 
     fiscal year 2007, $8,300,000 for fiscal year 2008, and 
     $8,800,000 for fiscal year 2009 shall be available to carry 
     out section 3038 of the Transportation Equity Act for the 
     21st Century (49 U.S.C. 5310 note).
       ``(c) Major Capital Investment Grants.--There are 
     authorized to be appropriated to carry out section 
     5309(m)(2)(A)--
       ``(1) $1,503,000,000 for fiscal year 2006;
       ``(2) $1,566,000,000 for fiscal year 2007;
       ``(3) $1,700,000,000 for fiscal year 2008; and
       ``(4) $1,809,250,000 for fiscal year 2009.
       ``(d) Research and University Research Centers.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out transit cooperative research programs under 
     section 5313, the National Transit Institute under section 
     5315, university research centers under section 5506, and 
     national research programs under sections 5312, 5313, 5314, 
     and 5322 $58,000,000 for fiscal year 2006, $61,000,000 for 
     fiscal year 2007, $65,500,000 for fiscal year 2008, and 
     $69,750,000 for fiscal year 2009, of which--
       ``(A) $9,000,000 for fiscal year 2006, $9,300,000 for 
     fiscal year 2007, $9,600,000 for fiscal year 2008, and 
     $10,000,000 for fiscal year 2009 shall be allocated to carry 
     out transit cooperative research programs under section 5313;
       ``(B) $4,300,000 shall be allocated for each fiscal year to 
     carry out programs under the National Transit Institute under 
     section 5315, of which not more than $1,000,000 for each 
     fiscal year shall be used to carry out section 5315(a)(16);
       ``(C) $7,000,000 shall be allocated for each fiscal year to 
     carry out the university centers program under section 5506;
       ``(D) $3,000,000 shall be allocated for each fiscal year to 
     carry out Project Action under section 5314(a)(2);
       ``(E) $1,000,000 shall be allocated for each fiscal year to 
     carry out the National Technical Assistance Center under 
     section 5314(c); and
       ``(F) any funds made available under this paragraph that 
     are not allocated under subparagraphs (A) through (E) shall 
     be allocated to carry out national research programs under 
     sections 5312, 5313, 5314, and 5322.
       ``(2) University centers program.--
       ``(A) Allocation.--Of the amounts allocated under paragraph 
     (1)(C), the following amounts shall be available to provide 
     transportation research, training, and curriculum 
     development:
       ``(i) $2,000,000 for each of fiscal years 2006 through 2009 
     for the University of Tennessee--Knoxville National 
     Transportation Research Center.
       ``(ii) $1,500,000 for each of fiscal years 2006 through 
     2009 for Texas A&M University--Texas Transportation 
     Institute.
       ``(iii) $1,000,000 for each of fiscal years 2006 through 
     2009 for Morgan State University.
       ``(iv) $400,000 for each of fiscal years 2006 and 2007 for 
     the Small Urban & Rural Transit Center at North Dakota State 
     University.
       ``(v) $550,000 for each of fiscal years 2006 and 2007 and 
     $650,000 for each of fiscal years 2008 and 2009 for the 
     University Transportation Center at the University of 
     Alabama.
       ``(vi) $450,000 for each of fiscal years 2006 and 2007 and 
     $550,000 for each of fiscal years 2008 and 2009 for the 
     Injury Control Research Center at the University of Alabama 
     Birmingham.
       ``(vii) $550,000 for each of fiscal years 2006 and 2007 and 
     $650,000 for each of fiscal years 2008 and 2009 for the 
     Jackson State University Intermodal Transportation Institute 
     at the Jackson State University.
       ``(viii) $550,000 for each of fiscal years 2006 and 2007 
     and $650,000 for each of fiscal years 2008 and 2009 for the 
     University Transportation Center at the University of Denver/
     Mississippi State University.
       ``(B) Requirements.--The universities specified in 
     subparagraph (A) shall be considered to be university 
     transportation centers under section 5506 and shall be 
     subject to the requirements of subsections (b), (h), (i), 
     (k), (l), and (m) of such section.
       ``(e) Administration.--There is authorized to be 
     appropriated to carry out section 5334--
       ``(1) $82,000,000 for fiscal year 2006;
       ``(2) $85,000,000 for fiscal year 2007;
       ``(3) $92,500,000 for fiscal year 2008; and
       ``(4) $98,500,000 for fiscal year 2009.
       ``(f) Grants as Contractual Obligations.--
       ``(1) Grants financed from highway trust fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts made available from the Mass Transit Account of the 
     Highway Trust Fund pursuant to this section is a contractual 
     obligation of the Government to pay the Federal share of the 
     cost of the project.
       ``(2) Grants financed from general fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts appropriated in advance from the General Fund of the 
     Treasury pursuant to this section is a contractual obligation 
     of the Government to pay the Federal share of the cost of the 
     project only to the extent that amounts are appropriated for 
     such purpose by an Act of Congress.
       ``(g) Availability of Amounts.--Amounts made available by 
     or appropriated under subsections (b), (c), and (d) shall 
     remain available until expended.''.

     SEC. 3037. ALTERNATIVES ANALYSIS PROGRAM.

       (a) In General.--Section 5339 is amended to read as 
     follows:

     ``Sec. 5339. Alternatives analysis program

       ``(a) Grants and Agreements.--Under criteria established by 
     the Secretary, the Secretary may award grants to States, 
     authorities of the States, metropolitan planning 
     organizations, and local governmental authorities to develop 
     alternatives analyses as defined by section 5309(a)(1).
       ``(b) Government's Share of Costs.--The Government's share 
     of the cost of an activity funded using amounts made 
     available under this section may not exceed 80 percent of the 
     cost of the activity.
       ``(c) Availability of Funds.--An amount made available or 
     appropriated under section 5338(b)(2)(L) for this section 
     shall remain available for 3 fiscal years, including the 
     fiscal year in which the amount is made available or 
     appropriated. Any of such amounts that are unobligated at the 
     end of the 3-fiscal-year period may be used by the Secretary 
     for any purpose under this section.''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by striking the item relating to section 5339 and 
     inserting the following:

``5339. Alternatives analysis program.''.

       (c) Projects.--For each of fiscal years 2006 and 2007, of 
     the funds authorized under this section, funds shall be made 
     available to the following projects in not less than the 
     amounts specified:
       (1) Minnesota Red Rock Corridor/Rush Line/Central Corridors 
     studies, $2,000,000.
       (2) Trans-Hudson Midtown corridor study, $1,500,000.
       (3) Lane County, Oregon Bus Rapid Transit Phase II corridor 
     study, $500,000.
       (4) Portland Streetcar, Oregon corridor study, $1,500,000.
       (5) San Gabriel Valley-Gold Line Foothill Extension 
     corridor study, $1,250,000.
       (6) Monmouth-Ocean-Middlesex Counties, New Jersey corridor 
     study, $1,250,000.
       (7) Metra BNSF Naperville to Aurora corridor study, 
     $1,250,000.
       (8) Madison and Dane Counties, Wisconsin Transport 2020 
     corridor study, $750,000.
       (9) Sound Transit I-90 Long-Range Plan corridor studies, 
     $750,000.
       (10) Middle Rio Grande Coalition of governments, 
     Albuquerque to Santa Fe corridor study, $500,000.
       (11) Piedmont Authority Regional Transportation East-West 
     corridor study, $1,000,000.
       (12) Baltimore Red Line/Green Line Transit Project study, 
     $1,500,000.
       (13) Metra-West Line Extension, Elgin to Rockford study, 
     $1,000,000.
       (14) Madison-Ridgeland Transportation Commission, 
     Mississippi, Madison Light Rail Transportation Corridor 
     study, $350,000.
       (15) South Carolina Department of Transportation Light Rail 
     study, $300,000.
       (16) Provo Orem BRT study, $500,000.
       (17) Sevierville County Transportation Board, Sevier County 
     BRT study, $500,000.
       (18) New Jersey Transit Midtown Project study, $2,500,000.

     SEC. 3038. APPORTIONMENTS BASED ON GROWING STATES FORMULA 
                   FACTORS.

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

     ``Sec. 5340. Apportionments based on growing States and high 
       density States formula factors

       ``(a) Definition.--In this section, the term `State' shall 
     mean each of the 50 States of the United States.
       ``(b) Allocation.--Of the amounts made available for each 
     fiscal year under section 5338(b)(2)(M), the Secretary shall 
     apportion--
       ``(1) 50 percent to States and urbanized areas in 
     accordance with subsection (c); and
       ``(2) 50 percent to States and urbanized areas in 
     accordance with subsection (d).
       ``(c) Growing State Apportionments.--
       ``(1) Apportionment among states.--The amounts apportioned 
     under subsection (b)(1) shall provide each State with an 
     amount equal to the total amount apportioned multiplied by a 
     ratio equal to the population of that State forecast for the 
     year that is 15 years after the most recent decennial census, 
     divided by the total population of all States forecast for 
     the year that is 15 years after the most recent decennial 
     census. Such forecast shall be based on the population trend 
     for each State between the most recent decennial census and 
     the most recent estimate of population made by the Secretary 
     of Commerce.
       ``(2) Apportionments between urbanized areas and other than 
     urbanized areas in each state.--
       ``(A) In general.--The Secretary shall apportion amounts to 
     each State under paragraph (1) so that urbanized areas in 
     that State receive an amount equal to the amount apportioned 
     to that State multiplied by a ratio equal to the sum of the 
     forecast population of all urbanized areas in

[[Page H7340]]

     that State divided by the total forecast population of that 
     State. In making the apportionment under this subparagraph, 
     the Secretary shall utilize any available forecasts made by 
     the State. If no forecasts are available, the Secretary shall 
     utilize data on urbanized areas and total population from the 
     most recent decennial census.
       ``(B) Remaining amounts.--Amounts remaining for each State 
     after apportionment under subparagraph (A) shall be 
     apportioned to that State and added to the amount made 
     available for grants under section 5311.
       ``(3) Apportionments among urbanized areas in each state.--
     The Secretary shall apportion amounts made available to 
     urbanized areas in each State under paragraph (2)(A) so that 
     each urbanized area receives an amount equal to the amount 
     apportioned under paragraph (2)(A) multiplied by a ratio 
     equal to the population of each urbanized area divided by the 
     sum of populations of all urbanized areas in the State. 
     Amounts apportioned to each urbanized area shall be added to 
     amounts apportioned to that urbanized area under section 
     5336, and made available for grants under section 5307.
       ``(d) High Density State Apportionments.--Amounts to be 
     apportioned under subsection (b)(2) shall be apportioned as 
     follows:
       ``(1) Eligible states.--The Secretary shall designate as 
     eligible for an apportionment under this subsection all 
     States with a population density in excess of 370 persons per 
     square mile.
       ``(2) State urbanized land factor.--For each State 
     qualifying for an apportionment under paragraph (1), the 
     Secretary shall calculate an amount equal to--
       ``(A) the total land area of the State (in square miles); 
     multiplied by
       ``(B) 370; multiplied by
       ``(C)(i) the population of the State in urbanized areas; 
     divided by
       ``(ii) the total population of the State.
       ``(3) State apportionment factor.--For each State 
     qualifying for an apportionment under paragraph (1), the 
     Secretary shall calculate an amount equal to the difference 
     between the total population of the State less the amount 
     calculated in paragraph (2).
       ``(4) State apportionment.--Each State qualifying for an 
     apportionment under paragraph (1) shall receive an amount 
     equal to the amount to be apportioned under this subsection 
     multiplied by the amount calculated for the State under 
     paragraph (3) divided by the sum of the amounts calculated 
     under paragraph (3) for all States qualifying for an 
     apportionment under paragraph (1).
       ``(5) Apportionments among urbanized areas in each state.--
     The Secretary shall apportion amounts made available to each 
     State under paragraph (4) so that each urbanized area 
     receives an amount equal to the amount apportioned under 
     paragraph (4) multiplied by a ratio equal to the population 
     of each urbanized area divided by the sum of populations of 
     all urbanized areas in the State. Amounts apportioned to each 
     urbanized area shall be added to amounts apportioned to that 
     urbanized area under section 5336, and made available for 
     grants under section 5307.''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by adding at the end the following:

``5340. Apportionments based on growing States and high density States 
              formula factors.''.

     SEC. 3039. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.

       (a) In General.--Section 3038 of the Transportation Equity 
     Act for the 21st Century (49 U.S.C. 5310 note; 112 Stat. 392) 
     is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.'';

       (2) by striking subsection (e) and inserting the following:
       ``(e) Federal Share of Costs.--The Federal share of costs 
     under this section shall be provided from funds made 
     available to carry out this section and shall be determined 
     in accordance with section 5323(i) of title 49, United States 
     Code.''; and
       (3) by striking subsection (g) and inserting the following:
       ``(g) Funding.--
       ``(1) Intercity, fixed route over-the-road bus service.--Of 
     the amounts made available to carry out this section in each 
     fiscal year, 75 percent shall be available for operators of 
     over-the-road buses used substantially or exclusively in 
     intercity, fixed-route over-the-road bus service to finance 
     the incremental capital and training costs of the Department 
     of Transportation's final rule regarding accessibility of 
     over-the-road buses. Such amounts shall remain available 
     until expended.
       ``(2) Other over-the-road bus service.--Of the amounts made 
     available to carry out this section in each fiscal year, 25 
     percent shall be available for operators of other over-the-
     road bus service to finance the incremental capital and 
     training costs of the Department of Transportation's final 
     rule regarding accessibility of over-the-road buses. Such 
     amounts shall remain available until expended.''.
       (b) Conforming Amendments.--The table of contents contained 
     in section 1(b) of the Transportation Equity Act for the 21st 
     Century (112 Stat. 107) is amended by striking the item 
     relating to section 3038 and inserting the following:

``3038. Over-the-road bus accessibility program.''.

     SEC. 3040. OBLIGATION CEILING.

       Notwithstanding any other provision of law, the total of 
     all obligations from amounts made available from the Mass 
     Transit Account of the Highway Trust Fund by, and amounts 
     appropriated under, subsections (a) through (f) of section 
     5338 of title 49, United States Code, shall not exceed--
       (1) $7,646,336,000 for fiscal year 2005, of which not more 
     than $6,690,544,000 shall be from the Mass Transit Account;
       (2) $8,622,931,000 for fiscal year 2006, of which not more 
     than $6,979,931,000 shall be from the Mass Transit Account;
       (3) $8,974,775,000 for fiscal year 2007, of which not more 
     than $7,262,775,000 shall be from the Mass Transit Account;
       (4) $9,730,893,000 for fiscal year 2008, of which not more 
     than $7,871,895,000 shall be from the Mass Transit Account; 
     and
       (5) $10,338,065,000 for fiscal year 2009, of which not more 
     than $8,360,565,000 shall be from the Mass Transit Account.

     SEC. 3041. ADJUSTMENTS FOR FISCAL YEAR 2005.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary shall ensure that the total apportionments 
     and allocations made for fiscal year 2005 to each grant 
     recipient under the Federal Transit Administration programs 
     shall not exceed the amount made available under section 5338 
     of title 49, United States Code, as amended by this title, 
     for fiscal year 2005 plus prior year balances.
       (b) Fixed Guideway Modernization Adjustment.--In making the 
     apportionments described in subsection (a), the Secretary 
     shall adjust the amount apportioned for fiscal year 2005 to 
     each urbanized area for fixed guideway modernization to 
     reflect the apportionment method set forth in section 5337(a) 
     of title 49, United States Code.
       (c) Reconciliation.--Funds authorized by or made available 
     under section 5338, as amended by this title, for fiscal year 
     2005--
       (1) shall not be subject to the across-the-board 
     rescissions in section 122 of division J of Public Law 108-
     477;
       (2) shall be transferred or made available for the purposes 
     as indicated in division H of Public Law 108-477, as amended 
     by Public Law 109-13; and
       (3) shall be administered consistent with the applicable 
     formula authorized under Public Law 105-178, as amended.

     SEC. 3042. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE 
                   AGAINST PUBLIC TRANSPORTATION SYSTEMS.

       (a) In General.--Section 1993 of title 18, United States 
     Code, is amended--
       (1) in the section heading by striking ``mass'' and 
     inserting ``public'';
       (2) by striking ``mass'' each place the term appears and 
     inserting ``public'';
       (3) in subsection (a)(5) by inserting ``controlling,'' 
     after ``operating,''; and
       (4) in subsection (c)(5) by striking ``5302(a)(7) of title 
     49, United States Code,'' and inserting ``5302(a) of title 
     49,''.
       (b) Chapter Analysis.--The analysis for chapter 97 of title 
     18, United States Code, is amended by striking the item 
     relating to section 1993 and inserting the following:

``1993. Terrorist attacks and other acts of violence against public 
              transportation systems.''.

     SEC. 3043. PROJECT AUTHORIZATIONS FOR NEW FIXED GUIDEWAY 
                   CAPITAL PROJECTS.

       (a) Existing Full Funding Grant Agreements.--The following 
     projects are authorized for final design and construction for 
     existing full funding grant agreements in not less than the 
     amount specified for each fiscal year:
       (1) Atlanta--North Springs Extension $263,287 for fiscal 
     year 2005.
       (2) Baltimore--Central LRT Double Tracking $28,777,920 for 
     fiscal year 2005 and $12,655,664 for fiscal year 2006.
       (3) Charlotte--South Corridor LRT $29,760,000 for fiscal 
     year 2005, $55,000,000 for fiscal year 2006, and $69,405,565 
     for fiscal year 2007.
       (4) Chicago--Chicago Transit Authority Douglas Branch 
     Reconstruction $84,320,000 for fiscal year 2005 and 
     $45,825,190 for fiscal year 2006.
       (5) Chicago--Chicago Transit Authority Ravenswood Expansion 
     Project $39,680,000 for fiscal year 2005, $40,000,000 for 
     fiscal year 2006, $40,000,000 for fiscal year 2007, 
     $40,000,000 for fiscal year 2008, and $65,152,615 for fiscal 
     year 2009.
       (6) Cleveland--Euclid Corridor Transportation Project 
     $24,800,000 for fiscal year 2005 and $24,774,513 for fiscal 
     year 2006.
       (7) Denver Southeast Corridor LRT $79,360,000 for fiscal 
     year 2005, $80,000,000 for fiscal year 2006, $80,000,000 for 
     fiscal year 2007, and $77,192,758 for fiscal year 2008.
       (8) Fort Lauderdale--Tri-Rail Commuter Rail Upgrade 
     $11,210,695 for fiscal year 2005.
       (9) Los Angeles--Metro Gold Line Eastside Extension 
     $59,520,000 for fiscal year 2005, $80,000,000 for fiscal year 
     2006, $100,000,000 for fiscal year 2007, $80,000,000 for 
     fiscal year 2008, and $80,000,000 for fiscal year 2009.
       (10) Los Angeles--North Hollywood MOS-3 $663,339 in fiscal 
     year 2005. 
       (11) Metra North Central Corridor Commuter Rail $24,084,000 
     for fiscal year 2005 and $16,529,452 for fiscal year 2006.
       (12) Metra South West Corridor Commuter Rail $15,500,000 
     for fiscal year 2005 and $11,781,395 for fiscal year 2006.
       (13) Metra Union Pacific West Line Extension $12,000,000 
     for fiscal year 2005 and $14,285,749 for fiscal year 2006.
       (14) Minneapolis--Hiawatha Corridor LRT $33,111,257 for 
     fiscal year 2005.
       (15) New Jersey Urban Core--Hudson-Bergen LRT $313,896.
       (16) New Jersey Urban Core--Hudson-Bergen LRT MOS-2 
     $99,200,000 for fiscal year 2005, $100,000,000 for fiscal 
     year 2006, $100,000,000 for fiscal year 2007, and $53,202,995 
     for fiscal year 2008.
       (17) New Jersey Urban Core--Newark-Elizabeth Rail Link MOS-
     1 $1,342,076 for fiscal year 2005.

[[Page H7341]]

       (18) New Orleans MOS-1 Canal Street $16,455,206 for fiscal 
     year 2005.
       (19) Phoenix--Central Phoenix/East Valley LRT $74,400,000 
     for fiscal year 2005, $90,000,000 for fiscal year 2006, 
     $90,000,000 for fiscal year 2007, $90,000,000 for fiscal year 
     2008, and $90,000,000 for fiscal year 2009.
       (20) Pittsburgh--North Shore LRT Connector $54,560,000 in 
     fiscal year 2005, $55,000,000 in fiscal year 2006, 
     $55,000,000 in fiscal year 2007, and $14,421,944 in fiscal 
     year 2008.
       (21) Pittsburgh--Stage II LRT Reconstruction $1,120,854 for 
     fiscal year 2005.
       (22) Portland--Interstate MAX LRT Extension $23,292,160 
     fiscal year 2005 and $18,292,550 for fiscal year 2006.
       (23) St. Louis--Metrolink Extension St. Clair County, IL 
     $53,383 for fiscal year 2005.
       (24) Salt Lake City--CBD to University LRT $1,127,405 for 
     fiscal year 2005.
       (25) Salt Lake City--Medical Center $8,682,141 for fiscal 
     year 2005.
       (26) San Diego--Mission Valley East LRT Extension 
     $80,986,880 for fiscal year 2005 and $8,353,424 for fiscal 
     year 2006.
       (27) San Diego--Oceanside Escondido Rail Corridor 
     $54,560,000 fiscal year 2005 and $12,651,061 for fiscal year 
     2006.
       (28) San Francisco--BART Extension to San Francisco Airport 
     $99,200,000 fiscal year 2005 and $82,655,680 for fiscal year 
     2006.
       (29) San Juan--Tren Urbano $44,263,040 fiscal year 2005 and 
     $10,555,900 for fiscal year 2006.
       (30) Seattle--Central Link Initial Segment LRT $79,360,000 
     for fiscal year 2005, $80,000,000 for fiscal year 2006, 
     $80,000,000 for fiscal year 2007, $70,000,000 for fiscal year 
     2008, and $24,028,149 for fiscal year 2009.
       (31) Washington DC/MD--Largo Metrorail Extension 
     $75,432,887 for fiscal year 2005.
       (b) Final Design and Construction.--The following projects 
     are authorized for final design and construction for fiscal 
     years 2005 through 2009 under paragraphs (1)(A) and (2)(A) of 
     section 5309(m) of title 49, United States Code:
       (1) Baltimore--MARC Commuter Rail Improvements.
       (2) Boston--Silver Line BRT Phase III.
       (3) Central Florida Commuter Rail System.
       (4) Charlotte--South Corridor LRT.
       (5) Dallas Area Rapid Transit--Northwest-Southeast LRT 
     Extension.
       (6) Delaware--Wilmington-Newark Commuter Rail Improvements.
       (7) Denver--West Corridor LRT.
       (8) El Paso--Rapid Transit (SMART) Starter Line.
       (9) Harrisburg--Corridor One Commuter Rail (MOS-1).
       (10) Houston Advanced Transit Program Light Rail.
       (11) Kansas City, Missouri--Southtown BRT.
       (12) Las Vegas--Resort Corridor Downtown Extension Project.
       (13) Los Angeles MTA--Exposition LRT.
       (14) Miami-Dade Transit--North Corridor.
       (15) Minneapolis--North Star Corridor.
       (16) Nashua--Commuter Rail.
       (17) Nashville, Tennessee Commuter Rail.
       (18) New Britain-Hartford Busway Project.
       (19) New Orleans--Desire Corridor Streetcar.
       (20) New York--Long Island Railroad East Side Access 
     Project.
       (21) New York--Second Avenue Subway.
       (22) Norfolk Light Rail.
       (23) Northern Virginia--Dulles Corridor Extension to Wiehle 
     Avenue (Phase 1).
       (24) Orange County, California--Rapid Transit Project.
       (25) Philadelphia--Schuylkill Valley MetroRail.
       (26) Pittsburgh--North Shore Connector.
       (27) Portland, Oregon--South Corridor I-205/Portland Mall 
     LRT.
       (28) Providence--South County Commuter Rail.
       (29) Sacramento--South Corridor LRT Extension (Phase 2), 
     Meadowview to Consumnes River College.
       (30) Salt Lake City--Weber County to Salt Lake City 
     Commuter Rail.
       (31) San Diego--Mid-Coast Extension.
       (32) San Francisco Muni--Third Street LRT-Phase I/II.
       (33) San Gabriel Valley--Gold Line Foothill Extension Phase 
     I/PhaseII, Los Angeles to Montclair.
       (34) Santa Clara Valley Transit Authority--Silicon Valley 
     Rapid Transit Corridor.
       (35) Tampa Bay--Regional Rail.
       (36) Triangle Transit Authority, North Carolina--Regional 
     Rail Project.
       (37) Washington County, Oregon--Wilsonville to Beaverton 
     Commuter Rail.
       (38) Wasilla-Girdwood, Alaska--Commuter Rail.
       (c) Preliminary Engineering.--The following projects are 
     authorized for preliminary engineering for fiscal years 2005 
     through 2009 under paragraphs (1)(A) and (2)(A) of section 
     5309(m) of title 49, United States Code:
       (1) Alameda, California--Fixed Guideway Corridor Project.
       (2) Alameda, California--Transit Improvements and 
     Multimodal Center.
       (3) Albuquerque--High Capacity Corridor.
       (4) Ann Arbor/Downtown Detroit--Transit Improvement 
     Project.
       (5) Atlanta--East Line 1-20 Corridor Project.
       (6) Atlanta--MARTA Memorial Drive Bus Rapid Transit.
       (7) Atlanta--GRTA I-75 Corridor, Downtown Atlanta--Cherokee 
     County.
       (8) Atlanta--Interstate 285 Transit Corridor.
       (9) Atlanta--Georgia 400 North Line Corridor Project.
       (10) Atlanta--Belt Line C-Loop.
       (11) Atlanta--I-20 East Line I-20 Corridor Project.
       (12) Atlanta--West Line I-20 Corridor Project.
       (13) Austin--San Antonio I-35 Commuter Rail.
       (14) Austin--Rapid Bus Project.
       (15) Austin--Urban Commuter Rail.
       (16) Baltimore Red Line/Green Line Transit Project.
       (17) Baton Rouge--Bus Rapid Transit.
       (18) Bayonne, New Jersey--Hudson Bergen LRT Extension to NY 
     Harbor.
       (19) Bernalillo-Santa Fe--New Mexico Commuter Rail.
       (20) Birmingham, Alabama--Transit Corridor.
       (21) Boise--Downtown Circulator.
       (22) Boise, Idaho--Valley Regional Transit Rail Corridor 
     Preservation.
       (23) Boston--Assembly Square Orange Line Station.
       (24) Boston--Lechmere Transit Improvement to Somerville and 
     Medford.
       (25) Boston--North Shore Corridor and Blue Line Extension.
       (26) Boston--North/South Rail Link.
       (27) Boston--Urban Ring BRT.
       (28) Bridgeport, Connecticut--Bridgeport Intermodal 
     Facility.
       (29) Broward County, Florida--Bus Rapid Transit.
       (30) Camden, New Jersey--North Ferry Terminal.
       (31) Carrollton, Texas--Regional Intermodal Passenger Rail 
     Facility Project.
       (32) Cedar Rapids, Iowa--River Rail Project.
       (33) Central Phoenix--East Valley Corridor LRT Extensions.
       (34) Charlotte--Charlotte Multimodal Station.
       (35) Charlotte--North Corridor Project.
       (36) Charlotte--Northeast Corridor Project.
       (37) Charlotte--South Corridor LRT extension to Rock Hill, 
     South Carolina.
       (38) Charlotte--Southeast Corridor Project.
       (39) Charlotte--West Corridor Project.
       (40) Charlotte--Center City Streetcar Project.
       (41) Chicago--Cermack Road BRT.
       (42) Chicago CTA--Red Line Extension.
       (43) Chicago CTA--Chicago Transit Hub (Circle Line-Ogden 
     Streetcar).
       (44) Chicago CTA--Orange Line Extension (Midway Airport to 
     Ford City).
       (45) Chicago CTA--Yellow Line Extension (Dempster-Old 
     Orchard).
       (46) Chicago--Ogden Avenue Corridor.
       (47) Chicago--Pace Golf Road Bus Rapid Transit.
       (48) Chula Vista, California--Bus Rapid Transit.
       (49) Clark County, Washington--MAX Extension.
       (50) Cleveland-Akron-Canton (Northeast Ohio) Commuter Rail.
       (51) Columbia, South Carolina--Light Rail.
       (52) Columbus--North Corridor LRT Project.
       (53) Contra-Costa--BART Extension.
       (54) Corpus Christi--Downtown Rail Trolley.
       (55) Dallas Area Rapid Transit--Dallas Central Business 
     District.
       (56) Dallas Area Rapid Transit--Rowlett LRT Extension.
       (57) Dallas Area Rapid Transit--Beltline to DFW Airport.
       (58) Dayton--Aviation Heritage Corridor Streetcar Project.
       (59) Dayton--Aviation Heritage Corridor Streetcar Project 
     Phase I.
       (60) Denton County Transportation Authority, Texas--Fixed 
     Guideway Project.
       (61) Denver--Gold Line Extension to Arvada.
       (62) Denver--RR Right of Way Acquisition.
       (63) Denver--United States Route 36 Transit Corridor.
       (64) Denver--North Metro Corridor to Thornton.
       (65) Denver--East Corridor to DIA Airport.
       (66) Denver--I-225 Transit Corridor.
       (67) Denver--Southeast Corridor Extension to Lone-Tree/
     Ridgegate.
       (68) Denver--Southwest Corridor Extension to C470/Lucent 
     Boulevard.
       (69) Detroit--Center City Loop.
       (70) Detroit--Woodward Corridor.
       (71) District of Columbia--Light Rail Starter Line.
       (72) Erie, Pennsylvania--Ferry Acquisition.
       (73) Fitchburg, Massachusetts--Commuter Rail Extensions and 
     Improvements.
       (74) Florence-Myrtle Beach, South Carolina--Transit 
     Corridor.
       (75) Fort Lauderdale--Downtown Rail Link.
       (76) Fort Lauderdale--Transit Project from NW 215th and 
     79th Streets.
       (77) Fort Worth--Cottonbelt Commuter Rail to DFW.
       (78) Fort Worth--Trinity Railway Express Commuter Rail 
     Extensions.
       (79) Galveston--Rail Trolley Extension.
       (80) Glendale, California--Downtown Streetcar.
       (81) Grand Rapids--Fixed Guideway Corridor Project.
       (82) Guam--Tumon Bay-Airport Light Rail.
       (83) Harrisburg, Pennsylvania--Corridor One MOS-2 (East 
     Mechanicsburg to Carlisle).
       (84) Harrison County, Mississippi--Canal Road Intermodal 
     Connector.
       (85) Henderson-Las Vegas-North Las Vegas--Regional Fixed 
     Guideway Project.
       (86) Honolulu--Rapid Transit Project.
       (87) Houston--Commuter Rail Service in Harris & Fort Bend 
     Counties.
       (88) Houston--Advanced Transportation Technology System.
       (89) Indianapolis--System of Metropolitan Area Rapid 
     Transit.
       (90) Jacksonville--East-Southwest BRT.
       (91) Jacksonville--North-Southeast BRT.
       (92) Kansas City, Missouri-Lawrence, Kansas--Commuter Rail.
       (93) Kenosha-Racine-Milwaukee Metra Commuter Rail Extension 
     (Wisconsin).
       (94) Kenosha, Wisconsin Streetcar Expansion Project.
       (95) King County, Washington--I-405 Corridor Bus Rapid 
     Transit.
       (96) Lake Tahoe--Passenger Ferry Service.
       (97) Lakeville, Minnesota--Cedar Avenue Corridor Bus Rapid 
     Transit.
       (98) Lane County, Oregon--Bus Rapid Transit, Phase 2.

[[Page H7342]]

       (99) Las Vegas--Boulder Highway MAX Bus Rapid Transit.
       (100) Little Rock--River Rail Streetcar Extensions.
       (101) Little Rock--West Little Rock Commuter Rail.
       (102) Livermore, California--BART Rail Extension to 
     Livermore.
       (103) Long Island Railroad--Nassau Hub.
       (104) Lorain-Cleveland Commuter Rail.
       (105) LOSSAN Del Mar-San Diego--Rail Corridor Improvements.
       (106) Lovejoy to Griffin, Georgia Commuter Rail.
       (107) Madison, Wisconsin--Madison Streetcar.
       (108) Madison, Wisconsin--Light Rail Transportation.
       (109) Madison and Dane Counties, Wisconsin--Transport 2020 
     Commuter Rail.
       (110) Maryland--I-270 Corridor Cities Transitway.
       (111) Maryland--Route 5 Corridor to Waldorf.
       (112) Maryland--Silver Spring Capacity Improvements.
       (113) Massachusetts--Commuter Rail Extensions to Worcester 
     and New Bedford.
       (114) Memphis--Downtown Airport Corridor.
       (115) Memphis--Intermodal Terminal.
       (116) Memphis Regional Rail Plan.
       (117) Metra BNSF Naperville to Aurora Corridor Extension 
     and Improvements.
       (118) Metra South Suburban Airport Commuter Rail Extension.
       (119) Metra SouthEast Service Line Commuter Rail.
       (120) Metra STAR Line Inter-Suburban Commuter Rail.
       (121) Metra UP Northwest Line Core Capacity Upgrades.
       (122) Metra UP West Line Core Capacity Upgrades.
       (123) Metra-West Line Extension, Elgin to Rockford.
       (124) Miami-Dade Transit--Douglas Road Extension.
       (125) Miami-Dade Transit--East-West Corridor.
       (126) Miami-Dade Transit--Kendall Corridor.
       (127) Miami-Dade Transit--Northeast Corridor.
       (128) Miami-Dade Transit--South Dade Corridor.
       (129) Miami-Dade Transit--Miami Intermodal Center to 
     Earlington Heights.
       (130) Miami--Downtown Streetcar Project.
       (131) Middletown-South Fallsburg, New York, Passenger Rail.
       (132) Milwaukee--Downtown Dedicated Guideway Transit 
     Connector.
       (133) Minneapolis--Northwest Corridor Busway.
       (134) Minneapolis-St. Paul--Central Corridor Transit 
     Project.
       (135) Minneapolis-St. Paul-Hinckley, Minnesota--Rush Line 
     Corridor.
       (136) Missouri/Kansas--Interstate 35 Transit Corridor.
       (137) Monterey County, California--Commuter Rail.
       (138) Montgomery and Prince George's Counties, Maryland--
     Bi-County Transitway (Purple Line).
       (139) Nashua-Manchester--Commuter Rail Extension.
       (140) Nashville--Area Transit Corridors.
       (141) Nashville--Southeast Rail Corridor.
       (142) Nashville Tennessee Commuter Rail.
       (143) Nassau and Queens Counties, New York--LIRR Main Line 
     Third Track Project.
       (144) New Bedford-Fall River, Massachusetts--Commuter Rail 
     Extension.
       (145) New Haven, Connecticut-Hartford, Connecticut-
     Springfield, Massachusetts Commuter Line.
       (146) New Jersey Trans-Hudson Midtown Corridor.
       (147) New Jersey Transit--Northeast Corridor Trans-Hudson 
     Commuter Rail Improvements.
       (148) New Jersey Transit--Morris/Essex/Boonton Trans-Hudson 
     Commuter Rail Improvements.
       (149) New Jersey Transit--New York Susquehanna and Western 
     RR Commuter Extension.
       (150) New Jersey Transit--Phillipsburg Extension.
       (151) New Jersey Transit--West Trenton Line Commuter Line 
     Service Extension.
       (152) New Jersey-Pennsylvania Lackawanna Cutoff Rail 
     Restoration.
       (153) New Jersey Urban Core.
       (154) New Orleans--Airport-CBD Commuter Rail.
       (155) New Orleans--Riverfront Streetcar Downriver 
     Extension.
       (156) New Orleans--Riverfront Streetcar Upriver Extension.
       (157) New York--Governors Island Transportation Access.
       (158) New York--Long Island Sound (Long Island) Ferry 
     Service.
       (159) New York--Long Island Sound (Westchester) Ferry 
     Service.
       (160) New York--NYC Bus Rapid Transit.
       (161) New York--NYC Highline.
       (162) New York--Penn Station Access Project.
       (163) New York--Rockaway-Brooklyn Army Terminal-Manhattan 
     Ferry Service.
       (164) New York--Staten Island to Manhattan High-Speed Ferry 
     Service Extension.
       (165) New York--Stewart Airport Rail Access.
       (166) New York--Tappan Zee I-287 Corridor.
       (167) New York--West Harlem Waterfront Ferry Improvements.
       (168) Newburg, New York--LRT System.
       (169) Northern Indiana--Commuter District Line.
       (170) Northern Indiana--West Lake Commuter Rail Link (South 
     Shore Commuter Rail).
       (171) Norfolk--Naval Station Corridor.
       (172) Norfolk-Petersburg--United States Route 460 Commuter 
     Rail Project.
       (173) Northern Virginia--Crystal City Potomac Yards 
     Transit.
       (174) Northern Virginia--Columbia Pike Rapid Transit 
     Project.
       (175) Northern Virginia--Dulles Corridor Extension, Phase 
     2.
       (176) Northern Virginia--Richmond Highway (Route 1) Rapid 
     Transit Project.
       (177) Oakland--Telegraph Avenue/International Blvd/East 
     14th Street BRT.
       (178) Ogden--Intermodal-Weber State University Transit 
     Connection.
       (179) Orange County, California--Bus Rapid Transit.
       (180) Orlando-Orange County, Florida--Light Rail Project.
       (181) Ottawa, Illinois--Illinois Valley Commuter Rail 
     Extension.
       (182) Pawtucket, Rhode Island--Commuter Rail Station.
       (183) Philadelphia--Elwyn to Wawa Train Service 
     Restoration.
       (184) Philadelphia--Navy Yard Transit Extension.
       (185) Philadelphia--52nd Street City Connector Project.
       (186) Philadelphia--Route 100 Rapid Trolley Extension.
       (187) Philadelphia--Broad Street Subway Line Extension.
       (188) Piedmont Authority Regional Transportation--East-West 
     Rail Transit Corridor Project.
       (189) Pinellas Mobility Initiative Bus Rapid Transit.
       (190) Pittsburgh--Keystone West Passenger Rail Corridor in 
     Blair, Cambria, West Moreland, and Allegheny Counties.
       (191) Pittsburgh--East-West Corridor Rapid Transit.
       (192) Pittsburgh--Martin Luther King, Jr. Busway Extension.
       (193) Pittsburgh--Oakland Technology Corridor.
       (194) Portland Streetcar Extensions.
       (195) Portland-Yarmouth-Brunswick-Lewiston/Auburn Passenger 
     Rail.
       (196) Providence--South County Commuter Rail Phase II.
       (197) Provo-Orem Utah--Bus Rapid Transit.
       (198) Quakertown-Stoney Creek, Pennsylvania--Rail 
     Restoration.
       (199) Raritan Valley, New Jersey--Commuter Rail.
       (200) Reno, Nevada--Virginia Street Bus Rapid Transit 
     Project.
       (201) Riverside County, California--Perris Valley Line 
     Metrolink Extension.
       (202) Roaring Fork Valley, Colorado--Bus Rapid Transit.
       (203) Rock Island, Illinois--Quad Cities Rapid Transit 
     System.
       (204) Sacramento--Downtown Streetcar Project.
       (205) Sacramento--Regional Rail, Auburn to Oakland.
       (206) Sacramento--Downtown/Natomas Airport Transit 
     Corridor.
       (207) Salt Lake City--Airport to University LRT.
       (208) Salt Lake City--Delta Center to Gateway Intermodal 
     Center LRT Extension.
       (209) Salt Lake City--Draper to Sandy LRT Extension.
       (210) Salt Lake-Provo--Commuter Rail Extension.
       (211) Salt Lake City--TRAX Capacity Improvements.
       (212) Salt Lake City--West Valley City LRT Extension.
       (213) Salt Lake City--West Valley City 3500 South BRT.
       (214) Salt Lake City--West Jordan LRT extension.
       (215) Salt Lake City to South Davis Transit Connection.
       (216) San Antonio--Bus Rapid Transit.
       (217) San Diego--First Bus Rapid Transit.
       (218) San Diego--San Diego Imperial County Mag-Lev Rail 
     Airport Corridor Project.
       (219) San Diego--Sprinter Rail Line Extension Project.
       (220) San Francisco--BART Extension to Livermore.
       (221) San Francisco--BART Extension to Oakland 
     International Airport.
       (222) San Francisco--MUNI Geary Boulevard Bus Rapid 
     Transit.
       (223) San Francisco--Oyster Point Ferry Terminal.
       (224) San Francisco--Transbay Terminal/Caltrain Downtown 
     Extension Project.
       (225) San Joaquin, California--Regional Rail Commission 
     Central Valley Rail Service.
       (226) San Joaquin Regional Rail Commission Commuter Rail 
     (Altamont Commuter Express).
       (227) San Juan Tren Urbano--Extension from Rio Piedras to 
     Carolina.
       (228) San Juan--Tren Urbano Minillas Extension.
       (229) Santa Fe--El Dorado Rail Link.
       (230) Seattle--Monorail Project Post--Green Line 
     Extensions.
       (231) Seattle--Link LRT Extensions.
       (232) Seattle--Sound Transit Commuter Rail.
       (233) Seattle--Sound Transit Regional Express Bus.
       (234) Sevierville to Pigeon Ford, Tennessee--Bus Rapid 
     Transit.
       (235) Sonoma/Marin (SMART) Commuter Rail, California.
       (236) Southern California High Speed Regional Transit.
       (237) Southern New Jersey to Philadelphia Transit Project.
       (238) St. Louis Metro Link--Scott AFB to Mid America 
     Airport.
       (239) St. Louis--East/West Gateway.
       (240) St. Louis--Metro Link Northside Daniel Boone Project.
       (241) St. Louis--Metro South Corridor.
       (242) St. Louis--University Downtown Trolley.
       (243) St. Paul--Red Rock Corridor Commuter Rail Project.

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       (244) Stamford, Connecticut--Boston Post Road Intermodal 
     Center and Capacity Expansion Project.
       (245) Stamford, Connecticut--Urban Transitway Phase II.
       (246) Tampa--Bus Rapid Transit Improvements.
       (247) Tampa--Streetcar Extension to Downtown Tampa.
       (248) Toledo, Ohio--CBD to Zoo.
       (249) Toledo, Ohio--University Corridor.
       (250) Trenton Trolley.
       (251) Tri-Rail Dolphin Extension.
       (252) Tri-Rail Florida East Coast Commuter Rail Extension.
       (253) Tri-Rail Jupiter Extension.
       (254) Tri-Rail Scripps Corridor Extension Project.
       (255) Tucson--Old Pueblo Trolley Expansion.
       (256) Vancouver--Interstate MAX Extension to Clark County, 
     Washington.
       (257) Virginia Beach--Bus Rapid Transit.
       (258) Virginia Railway Express Capacity Improvements.
       (259) Washington, D.C.--Woodrow Wilson Bridge Transit 
     Projects.
       (260) Washington State Ferries and Ferry Facilities.
       (261) Washington State--Issaquah Valley Trolley Project.
       (262) Williamsburg-Newport News--Peninsula Rail Transit.
       (263) Wilmington, Delaware--Commuter Rail to Middletown.
       (264) Winston-Salem--Downtown Streetcar System.
       (d) Project Authorizations.--Subject to the requirements of 
     sections 5309(d) and 5309(e) of title 49, United States Code, 
     the following projects are authorized for the following 
     amounts:
       (1) Ann Arbor/Downtown Detroit Transit Improvement Project, 
     $100,000,000.
       (2) Baltimore Red Line/Green Line Transit Project, 
     $102,300,000.
       (3) Bernalillo-Santa Fe-New Mexico Commuter Rail, 
     $75,000,000.
       (4) Birmingham-Jefferson Transit Authority--I-65 South BRT, 
     $100,000,000.
       (5) Boston--Assembly Square Orange Line Station, 
     $25,000,000.
       (6) Boston--Silver Line BRT Phase II, $20,000,000.
       (7) Bridgeport, Connecticut--Bridgeport Intermodal Transit 
     Center, $28,000,000.
       (8) Dallas Area Rapid Transit--NW/SW Light Rail Transit 
     Minimal Operable Segment, $260,000,000.
       (9) Delaware--Wilmington-Newark Commuter Rail Improvements, 
     $14,000,000.
       (10) Denver Regional Transit District--West Corridor, 
     $270,000,000.
       (11) Grand Rapids--Fixed Guideway Corridor Project, 
     $14,400,000.
       (12) Harrison County, Mississippi HOV/BRT Canal Road 
     Intermodal Connector, $70,000,000.
       (13) Henderson-Las Vegas-North Las Vegas--Regional Fixed 
     Guideway Project, $32,000,000.
       (14) Houston--Advanced Transportation Technology System in 
     Harris County, $245,000,000.
       (15) Kenosha-Racine-Milwaukee Metra Commuter Rail Extension 
     (Wisconsin), $80,000,000.
       (16) Lake Tahoe--Passenger Ferry Service, $8,000,000.
       (17) Lane County, Oregon--Bus Rapid Transit, Phase 2, 
     $31,000,000.
       (18) Las Vegas--Boulder Highway MAX Bus Rapid Transit, 
     $12,000,000.
       (19) Las Vegas--Resort Corridor Downtown Extension Project, 
     $16,000,000.
       (20) Long Island Railroad--Nassau Hub, $10,000,000.
       (21) Los Angeles County Metropolitan Transportation 
     Authority (LACMTA): Mid-City/Exposition Light Rail Transit 
     Project, $11,000,000.
       (22) Metro Gold Line Foothill Extension Construction 
     Authority: Gold Line Foothill Light Rail Transit Project, 
     $6,000,000.
       (23) Miami--Downtown Streetcar Project, $50,000,000.
       (24) Minneapolis--North Star Corridor, $80,000,000.
       (25) Mississippi--I-69 HOV/BRT, $70,000,000.
       (26) Nashville--Commuter Rail, $6,200,000.
       (27) New Bedford-Fall River, Massachusetts--Commuter Rail 
     Extension, $10,000,000.
       (28) New Britain-Hartford Busway Project, $55,000,000.
       (29) New Jersey Transit--Northeast Corridor Trans-Hudson 
     Commuter Rail Improvements, $80,000,000.
       (30) New Orleans--Airport-CBD Commuter Rail, $5,000,000.
       (31) New Orleans--Desire Corridor Streetcar, $69,700,000.
       (32) New York--Penn Station Access Project, $15,000,000.
       (33) New York--Stewart Airport Rail Access, $40,000,000.
       (34) Providence--South County Commuter Rail, Phase II, 
     $60,000,000.
       (35) Providence--South County Commuter Rail, $36,000,000.
       (36) Pennsylvania--New Jersey Lackawanna Cutoff Rail 
     Restoration, $120,000,000.
       (37) Philadelphia--Schuylkill Valley Metro, $250,000,000.
       (38) Reno, Nevada--Virginia Street Bus Rapid Transit, 
     $12,000,000.
       (39) Sacramento--South Corridor LRT Extension (Phase 2), 
     Meadowview to Consumnes River College, $11,000,000.
       (40) Sacramento Regional Transit District: Downtown Natoma 
     Airport Transit Corridor, $5,000,000.
       (41) San Diego--Mid-Coast Light Rail Transit Extension, 
     $11,000,000.
       (42) San Francisco Muni Third St. Light Rail Transit-Phase 
     I/II, $15,000,000
       (43) Santa Clara Valley Transportation Authority--Silicon 
     Valley Rapid Transit Corridor Project, $11,000,000.
       (44) Santa Fe-El Dorado Rail Link, $5,400,000.
       (45) Sonoma Marin Area Rail Transit (SMART) Project, 
     $5,000,000.
       (46) St. Louis--Metro South Corridor Metrolink Light Rail 
     Extension, $135,000,000.
       (47) St. Louis--North Side and Daniel Boone Corridors 
     Metrolink Light Rail Extensions, $275,000,000.
       (48) Stamford, Connecticut Urban Transitway Phase II, 
     $22,800,000.
       (49) Tampa--Streetcar Extension to Downtown Tampa, 
     $3,000,000.
       (50) Utah--Regional Commuter Rail, $200,000,000.
       (51) Washington State Ferries, $25,000,000.
       (52) Wilmington, Delaware--Commuter Rail to Middletown, 
     $24,900,000.
       (e) Rules Relating to Funding.--
       (1) Subsection (a) projects.--
       (A) In general.--The Secretary is authorized to expend 
     funds made available under section 5309(m) of title 49, 
     United States Code, for final design and construction of 
     projects authorized by subsection (a) as existing full 
     funding grant agreements.
       (B) Minimum funding levels.--The Secretary shall make 
     available not less than the following amounts for projects 
     authorized by subsection (a): $1,157,400,426 for fiscal year 
     2005, $838,360,578 for fiscal year 2006, $614,405,565 for 
     fiscal year 2007, $424,817,697 for fiscal year 2008, and 
     $259,180,764 for fiscal year 2009.
       (2) Subsection (b) projects.--
       (A) In general.--Projects authorized by subsection (b) for 
     final design and construction are also authorized for 
     alternatives analysis and preliminary engineering.
       (B) Minimum funding levels.--The Secretary shall make 
     available not less than the following amounts for projects 
     authorized by subsection (b): $165,402,806 for fiscal year 
     2005, $544,399,422 for fiscal year 2006, $826,314,435 for 
     fiscal year 2007, $1,139,182,303 for fiscal year 2008, and 
     $1,405,329,236 for fiscal year 2009.
       (C) Priority.--In making funds available under subparagraph 
     (B), the Secretary shall first make such funds available for 
     any full funding grant agreement executed by the Secretary in 
     fiscal year 2005 after the date of enactment of this Act and 
     for any full funding grant agreement executed by the 
     Secretary in the amount indicated in fiscal years 2005 
     through 2009 in the amount indicated in the ``Schedule of 
     Federal Funds for the Project'' included in such agreement.
       (3) Subsection (c) projects.--
       (A) In general.--Effective October 1, 2007, projects 
     authorized by subsection (c) for preliminary engineering are 
     also authorized for final design and construction.
       (B) Maximum funding levels.--The Secretary shall make 
     available not more than the following amounts for projects 
     authorized by subsection (c): $115,026,368 for fiscal year 
     2005, $120,240,000 for fiscal year 2006, and $125,280,000 in 
     fiscal year 2007.
       (C) Maximum funding levels for preliminary engineering.--In 
     fiscal years 2008 and 2009, the Secretary shall make 
     available not more than the following amounts for projects 
     authorized by subsection (b), and projects authorized by 
     subsection (c), to conduct preliminary engineering 
     activities: $136,000,000 in fiscal year 2008 and $144,740,000 
     in fiscal year 2009.
       (f) New Jersey Urban Core Project.--Section 3031(d) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (112 
     Stat. 380; 105 Stat. 2122) is amended--
       (1) by striking ``associated components to and at the 
     contiguous New Jersey Meadowlands Sports Complex),'' and 
     inserting ``to and at the contiguous New Jersey Meadowlands 
     Sports Complex), including a connection to the Hudson River 
     Waterfront Transportation System, the Lackawanna Cutoff,''; 
     and
       (2) by striking ``in Lakewood to Freehold to Matawan or 
     Jamesburg, New Jersey, as described in section 3035(p) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (105 
     Stat. 2131)'' and inserting ``from Lakehurst to the Northeast 
     Corridor or the New Jersey Coast Line''.
       (g) New Jersey Trans-Hudson Midtown Corridor.--Not later 
     than 90 days after the date of enactment of this Act, the 
     Secretary shall permit New Jersey Transit to enter into 
     preliminary engineering on the New Jersey Trans-Hudson 
     Midtown Corridor project. When evaluating the local share of 
     such project in the new starts rating process, the Secretary 
     shall give consideration to project elements of the New 
     Jersey Trans-Hudson Midtown Corridor advanced with 100 
     percent non-Federal funds, including the purchase of bi-level 
     rail equipment and the New Jersey Transit Light Rail River 
     Line. Based upon the project's evaluations and ratings 
     required under section 5309(d) of title 49, United States 
     Code, the Secretary shall give strong consideration to the 
     project for a full funding grant agreement.
       (h) Houston Metro.--
       (1) Local share.--Notwithstanding any other provision of 
     law, for the purpose of calculating the non-Federal share of 
     the net project cost of any new fixed guideway capital 
     project currently included in the Advanced Transit Program 
     (``Metro Solutions Plan'') sponsored by the Metropolitan 
     Transit Authority of Harris County, Texas, the Secretary 
     shall include $324,000,000 in State and local funds expended 
     for the design and construction of the Red Line Light Rail 
     Transit system that operates in Harris County, Texas.
       (2) Special rule.--No provision of this Act shall be 
     construed to override or nullify the will of the voters who 
     approved the Metro Solutions Plan as described on the ballot 
     and in the accompanying Board resolutions, nor shall any 
     provision of this Act be construed to override or nullify the 
     terms and conditions of Metro Board Resolution No. 2003-77 or 
     any applicable provision of State law or the charter of the 
     city of

[[Page H7344]]

     Houston as in effect as of the date of enactment of this Act.
       (3) Amendment.--Section 178 of Public Law 108-447, division 
     H (118 Stat. 3230), is amended by striking ``49 USC 
     5309(e)(1)(A), 23 CFR 771.123, and 49 CFR 611.7.'' and 
     inserting ``49 U.S.C. 5309 and 49 C.F.R. 611.7: Provided, 
     That such projects shall retain their status in preliminary 
     engineering should bus rapid transit be chosen as the locally 
     preferred alternative during that phase.''.
       (i) Exemption.--The Metra BNSF Naperville to Aurora 
     Extension Project authorized under subsection (c) shall be 
     exempted from all requirements related to criteria for grants 
     for new fixed guideway capital projects under section 5309(d) 
     of title 49, United States Code, and from regulations 
     required under that section.
       (j) Rail Cars.--The project authorized by subsection 
     (a)(31) includes an additional 52 rapid rail cars and project 
     scope changes from amounts authorized by the Transportation 
     Equity Act for the 21st Century.

     SEC. 3044. PROJECTS FOR BUS AND BUS-RELATED FACILITIES AND 
                   CLEAN FUELS GRANT PROGRAM.

       (a) Projects.--Of the amounts made available to carry out 
     section 5309(m)(2)(C) of title 49, United States Code, for 
     each of fiscal years 2006 through 2009, the Secretary shall 
     make funds available for the following projects in not less 
     than the amounts specified for the fiscal year:

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       (b) Clean Fuels Grants Program Projects.--
       (1) Funding.--Notwithstanding subsection (a), the Secretary 
     shall make funds available for the projects listed in item 
     numbers 497, 517, 519, 557, 575, 578, 605, 611, 612, 614, 
     631, 638, 640, 641, 648, and 659 in the table contained in 
     subsection (a), in the amounts specified, from amounts made 
     available to carry out section 5308 of title 49, United 
     States Code.
       (2) Purchase of buses under supplemental environmental 
     project.--With respect to the project numbered 605, purchases 
     of buses procured under a supplemental environmental project 
     executed by the Rhode Island Public Transit Authority and the 
     Environmental Protection Agency are eligible for assistance 
     under section 5308 of such title.
       (c) Special Rule.--Notwithstanding any other provision of 
     law, the Secretary shall pay the Federal share of the net 
     project cost to a State or local governmental authority that 
     carries out or has carried out any part of the bus and bus-
     related facilities projects numbered 258 and 347 under 
     subsection (a).

     SEC. 3045. NATIONAL FUEL CELL BUS TECHNOLOGY DEVELOPMENT 
                   PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     national fuel cell bus technology development program (in 
     this section referred to as the ``program'') to facilitate 
     the development of commercially viable fuel cell bus 
     technology and related infrastructure.
       (b) General Authority.--The Secretary may enter into 
     grants, contracts, and cooperative agreements with no more 
     than 3 geographically diverse nonprofit organizations and 
     recipients under chapter 53 of title 49, United States Code, 
     to conduct fuel cell bus technology and infrastructure 
     projects under the program.
       (c) Grant Criteria.--In selecting applicants for grants 
     under the program, the Secretary shall consider the 
     applicant's--
       (1) ability to contribute significantly to furthering fuel 
     cell technology as it relates to transit bus operations, 
     including hydrogen production, energy storage, fuel cell 
     technologies, vehicle systems integration, and power 
     electronics technologies;
       (2) financing plan and cost share potential;
       (3) fuel cell technology to ensure that the program 
     advances different fuel cell technologies, including 
     hydrogen-fueled and methanol-powered liquid-fueled fuel cell 
     technologies, that may be viable for public transportation 
     systems; and
       (4) other criteria that the Secretary determines are 
     necessary to carry out the program.
       (d) Competitive Grant Selection.--The Secretary shall 
     conduct a national solicitation for applications for grants 
     under the program. Grant recipients shall be selected on a 
     competitive basis. The Secretary shall give priority 
     consideration to applicants that have successfully managed 
     advanced transportation technology projects, including 
     projects related to hydrogen and fuel cell public 
     transportation operations for a period of not less than 5 
     years.
       (e) Federal Share.--The Federal share of costs of the 
     program shall be provided from funds made available to carry 
     out this section. The Federal share of the cost of a project 
     carried out under the program shall not exceed 50 percent of 
     such cost. The cost of a project carried out under the 
     program shall not include the cost of a fuel cell power unit.
       (f) Grant Requirements.--A grant under this section shall 
     be subject to--
       (1) all terms and conditions applicable to a grant made 
     under section 5309 of title 49, United States Code; and
       (2) such other terms and conditions as are determined by 
     the Secretary.

     SEC. 3046. ALLOCATIONS FOR NATIONAL RESEARCH AND TECHNOLOGY 
                   PROGRAMS.

       (a) In General.--Amounts appropriated pursuant to section 
     5338(d) of title 49, United States Code, for national 
     research and technology programs under sections 5312, 5314, 
     and 5322 of such title shall be allocated by the Secretary as 
     follows:
       (1) Public transportation national security study.--
       (A) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary shall enter into an 
     agreement with the National Academy of Sciences to conduct a 
     study and evaluation of the value major public transportation 
     systems in the United States serving the 38 urbanized areas 
     that have a population of more than 1,000,000 individuals 
     provide to the Nation's security and the ability of such 
     systems to accommodate the evacuation, egress or ingress of 
     people to or from critical locations in times of emergency.
       (B) Alternative routes.--For each system described in 
     subparagraph (A) the study shall identify--
       (i) potential alternative routes for evacuation using other 
     transportation modes such as highway, air, marine, and 
     pedestrian activities; and
       (ii) transit routes that, if disrupted, do not have 
     sufficient transit alternatives available.
       (C) Report.--Not later than 24 months after the date of 
     entry into the agreement, the Academy shall submit to the 
     Secretary and the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Banking, Housing and Urban Affairs of the Senate 
     a final report on the results of the study and evaluation, 
     together with such recommendations as the Academy considers 
     appropriate.
       (D) Funding.--For each of fiscal years 2006 and 2007 
     $250,000 shall be available to carry out this paragraph.
       (2) Center for transit-oriented development.--For each of 
     fiscal years 2006 through 2009, not less than $1,000,000 
     shall be made available by the Secretary for establishment 
     and operation of the Center for Transit-Oriented 
     Development--
       (A) to develop standards and definitions for transit-
     oriented development adjacent to public transportation 
     facilities;
       (B) to develop system planning guidance, performance 
     criteria, and modeling techniques for metropolitan planning 
     agencies and public transportation agencies to maximize 
     ridership through land use planning and adjacent development; 
     and
       (C) to provide research support and technical assistance to 
     public transportation agencies, metropolitan planning 
     agencies, and other persons regarding transit-oriented 
     development.
       (3) Transportation equity research program.--For each of 
     fiscal years 2006 through 2009, not less than $1,000,000 
     shall be made available by the Secretary for research and 
     demonstration activities that focus on the impacts that 
     transportation planning, investment, and operations have on 
     low-income and minority populations that are transit 
     dependent. Such activities shall include the development of 
     strategies to advance economic and community development in 
     low-income and minority communities and the development of 
     training programs that promote the employment of low-income 
     and minority community residents on Federal-aid 
     transportation projects constructed in their communities.
       (4) Cognitive impairment study.--For fiscal year 2006, 
     $1,000,000 shall be made available by the Secretary for 
     research and demonstration activities that focus on the 
     capacity and resources of Oregon public transportation 
     systems to address the needs, barriers, and desires for 
     travel of people with cognitive impairments.
       (5) Transit career ladder training program.--For each 
     fiscal years 2006 through 2009, not less than $1,000,000 
     shall be available for a nationwide career ladder job 
     training partnership program for public transportation 
     employees to respond to technological changes in the public 
     transportation industry, especially in the area of 
     maintenance. Such program shall be carried out by the 
     Secretary through a contract with a national nonprofit 
     organization with a demonstrated capacity to develop and 
     provide such programs.
       (6) Pilot program for remote infrared audible signs.--
       (A) In general.--For each of fiscal years 2006 through 
     2009, not less than $500,000 shall be made available by the 
     Secretary to carry out a pilot program to determine the 
     benefits of remote infrared audible signage technology for 
     provision of wayfinding and information to people who are 
     visually, cognitively, or learning disabled.
       (B) Report.--
       (i) In general.--Not later than September 30, 2009, the 
     Secretary shall transmit to the Committee on Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a report on the pilot program carried out under this 
     section.
       (ii) Contents.--The report--

       (I) shall include--

       (aa) an evaluation of the effect of the pilot program on 
     multimodal accessibility in public transportation;
       (bb) an evaluation of the effect of the program on 
     operators of public transportation and their passengers;
       (cc) an evaluation of the effect of making public 
     transportation accessible to people with visual, cognitive, 
     and learning disabilities on ridership of public 
     transportation and use of paratransit; and
       (dd) an evaluation of the effect of the program on the 
     education, community integration, work life, and general 
     quality of life of the targeted populations.
       (7) Hydrogen fuel cell shuttle deployment demonstration 
     project.--To demonstrate the utility of hydrogen fuel cell 
     vehicles in daily shuttle service, $800,000 in each of fiscal 
     years 2006 and 2007 shall be provided for hydrogen fuel cell 
     employee shuttle vans, related equipment, operations, public 
     education and outreach in Allentown, Pennsylvania.
       (8) Wisconsin supplemental transportation rural assistance 
     program (strap).--
       (A) In general.--For capital projects, operations, purchase 
     or lease of vehicles, and integration, planning and 
     coordination of public transportation services in the State 
     of Wisconsin that will supplement and expand existing rural 
     and special public transportation services in that State, 
     $2,000,000 in each of fiscal years 2006, 2007, 2008, and 2009 
     shall be provided to the State of Wisconsin Department of 
     Transportation.
       (B) Purpose.--Funds received under this program may be used 
     to supplement public transportation programs for rural 
     populations for activities authorized under sections 5310, 
     5311, and 5316 of title 49, United States Code. Funds made 
     available under this program are subject to the requirements 
     of section 5311 of title 49, United States Code, except that 
     funds may be made available for up to 80 percent of net 
     operating costs. In awarding grants made available under this 
     program, the State shall consider--
       (i) rural population in the area to be served by the 
     applicant;
       (ii) extent to which the applicant demonstrates 
     coordination of existing transportation services or proposed 
     public transportation services;
       (iii) need for additional services in the area being 
     serviced by the applicant and the extent to which the 
     proposed services will address those needs and provide 
     accessibility for non-ambulatory recipients;
       (iv) extent to which the applicant demonstrates an 
     innovative approach that is responsive to the identified 
     service needs of the rural population; and
       (v) extent to which the applicant demonstrates that the 
     communities being served have been consulted in the planning 
     process.

[[Page H7378]]

       (9) Human services transportation coordination.--
       (A) In general.--For the management of a program to improve 
     and enhance the coordination of Federal resources for human 
     services transportation with those of the Department of 
     Transportation, $1,600,000 in each of fiscal years 2006, 
     2007, 2008, and 2009 shall be provided to a national non-
     profit organization that is competitively selected by the 
     Secretary. Such organization shall have demonstrated 
     expertise in issues of transportation coordination and in 
     providing technical assistance to local transportation 
     organizations.
       (B) Eligible activities.--Under this program, the 
     organization selected by the Secretary shall--
       (i) establish an advisory panel consisting of federal, 
     state and local officials and organizations;
       (ii) prepare an inventory of human service transportation 
     agencies operating in the United States;
       (iii) prepare an inventory of Federal transportation 
     spending;
       (iv) develop a program of technical assistance and training 
     for human services transportation organizations that shall 
     include on-site technical assistance, a resource 
     clearinghouse, and preparation of technical manuals;
       (v) prepare an annual report for the Secretary on 
     activities under this program and make recommendations for 
     improving coordination.
       (10) Portland, oregon streetcar prototype purchase and 
     deployment.--Not less than $1,000,000 shall be made available 
     in each of fiscal years 2006, 2007, 2008, and 2009 by the 
     Secretary to TriMet for the purchase and deployment of a 
     domestically manufactured streetcar.
       (11) Public transportation participation pilot program.--
       (A) In general.--Of the funds allocated under this section 
     for each of fiscal years 2006 through 2009, $1,000,000 for 
     each fiscal year shall be made available by the Secretary to 
     establish a pilot program to support planning and public 
     participation activities related to public transportation 
     projects.
       (B) Eligible activities.--Activities eligible to be carried 
     out under the pilot program may include the following:
       (i) Improving data collection analysis and transportation 
     access for all users of the public transportation systems.
       (ii) Supporting public participation through the project 
     development phases.
       (iii) Using innovative techniques to improve the 
     coordination of transportation alternatives.
       (iv) Enhancing the coordination of public transportation 
     benefits and services.
       (v) Contracting with stakeholders to focus on the delivery 
     of transportation plans and programs.
       (vi) Measuring and reporting on the annual performance of 
     the transportation systems.
       (12) Transportation hybrid electric vehicle and fuel cell 
     research.--$500,000 in each of fiscal years 2006 through 2009 
     for a transportation hybrid electric vehicle and fuel cell 
     research program at the University of Alabama.
       (13) Trauma care system research and development.--$500,000 
     in each of fiscal years 2006 through 2009 for trauma care 
     system research and development at the University of Alabama 
     in Birmingham.
       (14) Transportation infrastructure and logistics 
     research.--$500,000 in each of fiscal years 2006 through 2009 
     for transportation infrastructure and logistics research at 
     the University of Alabama in Huntsville.
       (15) National bus rapid transit institute.--$1,750,000 in 
     each of fiscal years 2006 though 2009 for the National Bus 
     Rapid Transit Institute at the University of South Florida.
       (16) Application of information technology to 
     transportation logistics and security.--$400,000 in each of 
     fiscal years 2006 through 2009 for research on the 
     application of information technology to transportation 
     logistics and security at the Northern Kentucky University.
       (17) Intelligent transportation system pilot project.--
     $465,000 in each of fiscal years 2006 through 2009 for an 
     intelligent transportation system pilot project with the 
     National Consortium on Remote Sensing in Transportation Flows 
     at the Ohio State University.
       (18) Regional public safety training center.--$500,000 in 
     each of fiscal years 2006 through 2009 for a regional public 
     safety training center at the Lehigh-Carbon Community 
     College.
       (19) Transit security training facility.--$750,000 in each 
     of fiscal years 2006 though 2009 for a transit security 
     training facility at the Chester County Community College.
       (20) Small urban and rural transit center.--$800,000 in 
     fiscal year 2006, $800,000 in fiscal year 2007, $1,200,000 in 
     fiscal year 2008, and $1,200,000 in fiscal year 2009 for the 
     Small Urban and Rural Transit Center at North Dakota State 
     University.
       (21) Advanced technology bus rapid transit project.-- 
     $500,000 in fiscal year 2006, $540,000 in fiscal year 2007, 
     $550,000 in fiscal year 2008, and $625,000 in fiscal year 
     2009 for the Southeastern Connecticut Advanced Technology Bus 
     Rapid Transit Project.
       (22) Greater new haven transit district fuel cell-powered 
     bus research.--$500,000 in fiscal year 2006, $540,000 in 
     fiscal year 2007, $550,000 in fiscal year 2008, and $625,000 
     in fiscal year 2009 for the Greater New Haven Transit 
     District Fuel Cell-Powered Bus Research.
       (23) Center for advanced transportation initiatives.--
     $500,000 in fiscal year 2006, $540,000 in fiscal year 2007, 
     $540,000 in fiscal year 2008, and $625,000 in fiscal year 
     2009 for the Rutgers Center for Advanced Transportation 
     Initiatives (CAIT).
       (24) Institute of technology's transportation, economic, 
     and land use system.--$500,000 in fiscal year 2006, $540,000 
     in fiscal year 2007, $540,000 in fiscal year 2008, and 
     $625,000 in fiscal year 2009 for the New Jersey Institute of 
     Technology's Transportation, Economic, and Land Use System 
     program (TELUS).
       (25) Regional transit training consortium pilot program.--
     $270,000 in fiscal year 2006, $380,000 in fiscal year 2007, 
     $380,000 in fiscal year 2008, and $450,000 in fiscal year 
     2009 for the Southern California Regional Transit Training 
     Consortium Pilot Program.
       (b) Remainder.--After making allocations under subsection 
     (a), the remainder of funds made available by section 5338(d) 
     of title 49, United States Code, for national research and 
     technology programs under sections 5312, 5314, and 5322 for a 
     fiscal year shall be allocated at the discretion of the 
     Secretary to other transit research, development, 
     demonstration and deployment projects authorized by sections 
     5312, 5314, and 5322 of such title.

     SEC. 3047. FORGIVENESS OF GRANT AGREEMENT.

       (a) Lane County Transit District.--Notwithstanding any 
     other provision of law (including any regulation), any 
     outstanding balances on the following grant agreements made 
     to the Lane County Transit District, Oregon, do not have to 
     be repaid:
       (1) Federal Contract Number OR-03-0087.
       (2) Federal Contract Number OR-90-X094.
       (b) Pee Dee Regional Transit Authority.--The debt 
     identified in the 2000 Triennial Review of the Pee Dee 
     Regional Transit Authority as owed to the Federal Transit 
     Administration by the Pee Dee Regional Transit Authority does 
     not have to be repaid.

     SEC. 3048. COOPERATIVE PROCUREMENT.

       Not later than 6 months after the date of enactment of this 
     Act, the Secretary shall undertake a 30-day review of efforts 
     to use cooperative procurement to determine whether benefits 
     are sufficient to formally incorporate cooperative 
     procurement into the mass transit program. In particular, the 
     Secretary shall review the progress made under the pilot 
     program authorized under section 166 of division F of the 
     Consolidated Appropriations Act, 2004 (49 U.S.C. 5397 note; 
     118 Stat. 309), based on experience to date in the pilot 
     program and any available reports to Congress submitted under 
     such section 166. The Secretary shall also consider 
     information gathered from grantees about cooperative 
     procurement, whether or not related to the pilot program.

     SEC. 3049. TRANSPORTATION FRINGE BENEFITS.

       (a) 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 the transit pass transportation fringe benefits 
     which, under section 2 of Executive Order 13150, are required 
     to be offered by Federal agencies in the National Capital 
     Region on the date of the enactment of this Act.
       (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), 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).
       (b) Authority 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) If and to the extent that the head of a Federal 
     agency, in his or her sole discretion, deems it appropriate, 
     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) may absorb the costs of such 
     services

[[Page H7379]]

     using any funds available to such agency, whether by 
     appropriation or otherwise.
       ``(3) In carrying out this subsection, a Federal agency, to 
     the maximum extent practicable and consistent with sound 
     budget policy, should--
       ``(A) use alternative fuel vehicles for the provision of 
     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 or chapter 171 of title 28, an individual shall not 
     be considered to be in the `performance of duty' or `acting 
     within the scope of his or her office or employment' by 
     virtue of the fact that such individual is receiving 
     transportation services under this subsection. Nor shall any 
     time during which an individual uses such services be 
     considered when calculating the hours of work or employment 
     for that individual for purposes of title 5 of the United 
     States Code, including chapter 55 of that title.
       ``(5)(A) The Administrator of General Services, after 
     consultation with the 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 or similar means of 
     transportation that is owned, leased, or provided pursuant to 
     contract by the United States Government.''.
       (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.

     SEC. 3050. COMMUTER RAIL.

       (a) In General.--The Federal Transit Administration shall 
     approve final design for the projects authorized under 
     section 3030(c)(1)(A)(xliv) of the Federal Transit Act of 
     1998 and section 1214(g) of the Transportation Equity Act for 
     the 21st Century (16 U.S.C. 668dd note) in the absence of an 
     access agreement with the owner of the railroad right of way.
       (b) Timely Resolution of Issues.--The Secretary shall 
     timely resolve any issues delaying the completion of the 
     projects authorized under section 1214(g) of the 
     Transportation Equity Act for the 21st Century (16 U.S.C. 
     668dd note) and section 3030(c)(1)(A)(xliv) of the Federal 
     Transit Act of 1998.

     SEC. 3051. PARATRANSIT SERVICE IN ILLINOIS.

       In the State of Illinois, a regional or State agency, or 
     another transit agency, may be responsible for providing the 
     complementary paratransit services that would otherwise be 
     provided by a transit agency under the Americans with 
     Disabilities Act of 1990. Where a regional or State agency, 
     or another transit agency, undertakes to provide such 
     services, either by agreement or pursuant to State 
     legislation, the Secretary may audit the paratransit services 
     provided, make recommendations, and take appropriate 
     enforcement action directed to such regional, State, or 
     transit agency providing the services, to ensure that the 
     requirements of the Americans with Disabilities Act of 1990 
     are met. Nothing in this Act shall be construed to conflict 
     with the requirements of the Americans with Disabilities Act 
     of 1990 and its implementing regulations.
                     TITLE IV--MOTOR CARRIER SAFETY

     SECTION 4001. SHORT TITLE.

       This title may be cited as the ``Motor Carrier Safety 
     Reauthorization Act of 2005''.
              Subtitle A--Commercial Motor Vehicle Safety

     SEC. 4101. AUTHORIZATION OF APPROPRIATIONS.

       (a) Motor Carrier Safety Grants.--Section 31104(a) of title 
     49, United States Code, is amended to read as follows:
       ``(a) In General.--Subject to subsection (f), there are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account) to carry out section 
     31102--
       ``(1) $188,480,000 for fiscal year 2005;
       ``(2) $188,000,000 for fiscal year 2006;
       ``(3) $197,000,000 for fiscal year 2007;
       ``(4) $202,000,000 for fiscal year 2008; and
       ``(5) $209,000,000 for fiscal year 2009.''.
       (b) Administrative Expenses.--Section 31104 of such title 
     is amended by adding the following at the end:
       ``(i) Administrative Expenses.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account) for the Secretary of 
     Transportation to pay administrative expenses of the Federal 
     Motor Carrier Safety Administration--
       ``(A) $254,849,000 for fiscal year 2005;
       ``(B) $213,000,000 for fiscal year 2006;
       ``(C) $223,000,000 for fiscal year 2007;
       ``(D) $228,000,000 for fiscal year 2008; and
       ``(E) $234,000,000 for fiscal year 2009.
       ``(2) Use of funds.--The funds authorized by this 
     subsection shall be used for personnel costs; administrative 
     infrastructure; rent; information technology; programs for 
     research and technology, information management, regulatory 
     development, the administration of the performance and 
     registration information system management, and outreach and 
     education; other operating expenses; and such other expenses 
     as may from time to time become necessary to implement 
     statutory mandates of the Administration not funded from 
     other sources.
       ``(j) Availability of Funds; Contract Authority.--
       ``(1) Period of availability.--The amounts made available 
     under this section shall remain available until expended.
       ``(2) Initial date of availability.--Authorizations from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     by this section shall be available for obligation on the date 
     of their apportionment or allocation or on October 1 of the 
     fiscal year for which they are authorized, whichever occurs 
     first.
       ``(3) Contract authority.--Approval by the Secretary of a 
     grant with funds made available under this section imposes 
     upon the United States a contractual obligation for payment 
     of the Government's share of costs incurred in carrying out 
     the objectives of the grant.''.
       (c) Grant Programs.--There are authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) the following sums for the following Federal 
     Motor Carrier Safety Administration programs:
       (1) Commercial driver's license program improvement 
     grants.--For commercial driver's license program improvement 
     grants under section 31313 of title 49, United States Code 
     $25,000,000 for each of fiscal years 2006 through 2009.
       (2) Border enforcement grants.--For border enforcement 
     grants under section 31107 of such title $32,000,000 for each 
     of fiscal years 2006, 2007, 2008, and 2009.
       (3) Performance and registration information system 
     management grant program.--For the performance and 
     registration information system management grant program 
     under section 31109 of such title $5,000,000 for each of 
     fiscal years 2006, 2007, 2008, and 2009.
       (4) Commercial vehicle information systems and networks 
     deployment.--For carrying out the commercial vehicle 
     information systems and networks deployment program under 
     section 4126 of this Act, $25,000,000 for each of fiscal 
     years 2006 through 2009.
       (5) Safety data improvement grants.--For safety data 
     improvement grants under section 4128 of this Act $2,000,000 
     for fiscal year 2006 and $3,000,000 for each of fiscal years 
     2007 through 2009.
       (d) Period of Availability.--The amounts made available 
     under subsection (b) of this section shall remain available 
     until expended.
       (e) Initial Date of Availability.--Amounts authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) by subsection (b) shall be available for 
     obligation on the date of their apportionment or allocation 
     or on October 1 of the fiscal year for which they are 
     authorized, whichever occurs first.
       (f) Contract Authority.--Approval by the Secretary of a 
     grant with funds made available under subsection (b) imposes 
     upon the United States a contractual obligation for payment 
     of the Government's share of costs incurred in carrying out 
     the objectives of the grant.

     SEC. 4102. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS 
                   AND FALSE RECORDS.

       (a) Recordkeeping and Reporting Violations.--Section 
     521(b)(2)(B) of title 49, United States Code, is amended--
       (1) in clause (i) by striking ``$500'' and inserting 
     ``$1,000''; and
       (2) by striking ``$5,000'' each place it appears and 
     inserting ``$10,000''.
       (b) Violations of Out-of-Service Orders.--Section 
     31310(i)(2) of title 49, United States Code, is amended--
       (1) by striking ``Not later than December 18, 1992, the'' 
     and inserting ``The'';
       (2) in subparagraph (A)--
       (A) by striking ``90 days'' and inserting ``180 days''; and
       (B) by striking ``$1,000'' and inserting ``$2,500'';
       (3) in subparagraph (B)--
       (A) by striking ``one year'' and inserting ``2 years''; and
       (B) by striking ``$1,000; and'' and inserting ``$5,000;'';
       (4) in subparagraph (C) by striking ``$10,000.'' and 
     inserting ``$25,000; and''; and
       (5) by adding at the end the following:
       ``(D) an employer that knowingly and willfully allows or 
     requires an employee to operate a commercial motor vehicle in 
     violation of an out-of-service order shall, upon conviction, 
     be subject for each offense to imprisonment for a term not to 
     exceed one year or a fine under title 18, or both.''.

     SEC. 4103. PENALTY FOR DENIAL OF ACCESS TO RECORDS.

       Section 521(b) of title 49, United States Code, is 
     amended--
       (1) by striking ``(b)(1)(A) If the Secretary'' and 
     inserting the following:
       ``(b) Violations Relating to Commercial Motor Vehicle 
     Safety Regulation and Operators.--
       ``(1) Notice.--
       ``(A) In general.--If the Secretary''; and
       (2) by adding at the end of paragraph (2) the following:
       ``(E) Copying of records and access to equipment, lands, 
     and buildings.--A person subject to chapter 51 or a motor 
     carrier, broker, freight forwarder, or owner or operator of a 
     commercial motor vehicle subject to part B of subtitle VI who 
     fails to allow promptly, upon demand, the Secretary (or an 
     employee designated by the Secretary) to inspect and copy any 
     record or inspect and examine equipment,

[[Page H7380]]

     lands, buildings and other property in accordance with 
     sections 504(c), 5121(c), and 14122(b) shall be liable to the 
     United States for a civil penalty not to exceed $1,000 for 
     each offense. Each day the Secretary is denied the right to 
     inspect and copy any record or inspect and examine equipment, 
     lands, buildings and other property shall constitute a 
     separate offense, except that the total of all civil 
     penalties against any violator for all offenses related to a 
     single violation shall not exceed $10,000. It shall be a 
     defense to such penalty that the records did not exist at the 
     time of the Secretary's request or could not be timely 
     produced without unreasonable expense or effort. Nothing in 
     this subparagraph amends or supersedes any remedy available 
     to the Secretary under section 502(d), section 507(c), or any 
     other provision of this title.''.

     SEC. 4104. REVOCATION OF OPERATING AUTHORITY.

       Section 13905(e) of title 49, United States Code, is 
     amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Protection of safety.--Notwithstanding subchapter II 
     of chapter 5 of title 5, the Secretary--
       ``(A) may suspend the registration of a motor carrier, a 
     freight forwarder, or a broker for failure to comply with 
     requirements of the Secretary pursuant to section 13904(c) or 
     13906 or an order or regulation of the Secretary prescribed 
     under those sections; and
       ``(B) shall revoke the registration of a motor carrier that 
     has been prohibited from operating in interstate commerce for 
     failure to comply with the safety fitness requirements of 
     section 31144.'';
       (2) in paragraph (2) by striking ``may suspend a 
     registration'' and inserting ``shall revoke the 
     registration''; and
       (3) by striking paragraph (3) and inserting the following:
       ``(3) Notice; period of suspension.--The Secretary may 
     suspend or revoke under this subsection the registration only 
     after giving notice of the suspension or revocation to the 
     registrant. A suspension remains in effect until the 
     registrant complies with the applicable sections or, in the 
     case of a suspension under paragraph (2), until the Secretary 
     revokes the suspension.''.

     SEC. 4105. STATE LAWS RELATING TO VEHICLE TOWING.

       (a) State Laws Relating to Vehicle Towing.--Section 
     14501(c) of title 49, United States Code, is amended by 
     adding at the end the following:
       ``(5) Limitation on statutory construction.--Nothing in 
     this section shall be construed to prevent a State from 
     requiring that, in the case of a motor vehicle to be towed 
     from private property without the consent of the owner or 
     operator of the vehicle, the person towing the vehicle have 
     prior written authorization from the property owner or lessee 
     (or an employee or agent thereof) or that such owner or 
     lessee (or an employee or agent thereof) be present at the 
     time the vehicle is towed from the property, or both.''.
       (b) Predatory Tow Truck Operations.--
       (1) Study.--The Secretary shall conduct a study--
       (A) to identify issues related to the protection of the 
     rights of individuals whose motor vehicles are towed;
       (B) to establish the scope and geographic reach of any 
     issues so identified, and
       (C) to identify potential remedies for those issues.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives a report on the results of 
     the study.

     SEC. 4106. MOTOR CARRIER SAFETY GRANTS.

       (a) State Plan Contents.--Section 31102(b)(1) of title 49, 
     United States Code, is amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) implements performance-based activities, including 
     deployment of technology to enhance the efficiency and 
     effectiveness of commercial motor vehicle safety programs;'';
       (2) by striking subparagraph (E) and inserting the 
     following:
       ``(E) provides that the total expenditure of amounts of the 
     State and its political subdivisions (not including amounts 
     of the Government) for commercial motor vehicle safety 
     programs for enforcement of commercial motor vehicle size and 
     weight limitations, drug interdiction, and State traffic 
     safety laws and regulations under subsection (c) of this 
     section will be maintained at a level at least equal to the 
     average level of that expenditure for the 3 full fiscal years 
     beginning after October 1 of the year 5 years prior to the 
     beginning of each Government fiscal year.'';
       (3) by striking subparagraph (Q) and inserting the 
     following:
       ``(Q) provides that the State has established a program to 
     ensure that--
       ``(i) accurate, complete, and timely motor carrier safety 
     data is collected and reported to the Secretary; and
       ``(ii) the State will participate in a national motor 
     carrier safety data correction system prescribed by the 
     Secretary;'';
       (4) by aligning subparagraph (R) with subparagraph (S);
       (5) by striking ``and'' at the end of subparagraph (S);
       (6) by striking the period at the end of subparagraph (T) 
     and inserting a semicolon; and
       (7) by adding at the end the following:
       ``(U) provides that the State will include in the training 
     manual for the licensing examination to drive a noncommercial 
     motor vehicle and a commercial motor vehicle, information on 
     best practices for driving safely in the vicinity of 
     noncommercial and commercial motor vehicles;
       ``(V) provides that the State will enforce the registration 
     requirements of section 13902 by prohibiting the operation of 
     any vehicle discovered to be operated by a motor carrier 
     without a registration issued under such section or to 
     operate beyond the scope of such registration;
       ``(W) provides that the State will conduct comprehensive 
     and highly visible traffic enforcement and commercial motor 
     vehicle safety inspection programs in high-risk locations and 
     corridors; and
       ``(X) except in the case of an imminent or obvious safety 
     hazard, ensures that an inspection of a vehicle transporting 
     passengers for a motor carrier of passengers is conducted at 
     a station, terminal, border crossing, maintenance facility, 
     destination, or other location where a motor carrier may make 
     a planned stop.''.
       (b) Use of Grants to Enforce Other Laws.--Section 31102 of 
     such title is amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) Use of Grants to Enforce Other Laws.--A State may use 
     amounts received under a grant under subsection (a)--
       ``(1) for the following activities if the activities are 
     carried out in conjunction with an appropriate inspection of 
     the commercial motor vehicle to enforce Government or State 
     commercial motor vehicle safety regulations:
       ``(A) enforcement of commercial motor vehicle size and 
     weight limitations at locations other than fixed weight 
     facilities, at specific locations such as steep grades or 
     mountainous terrains where the weight of a commercial motor 
     vehicle can significantly affect the safe operation of the 
     vehicle, or at ports where intermodal shipping containers 
     enter and leave the United States; and
       ``(B) detection of the unlawful presence of a controlled 
     substance (as defined under section 102 of the Comprehensive 
     Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
     802)) in a commercial motor vehicle or on the person of any 
     occupant (including the operator) of the vehicle; and
       ``(2) for documented enforcement of State traffic laws and 
     regulations designed to promote the safe operation of 
     commercial motor vehicles, including documented enforcement 
     of such laws and regulations relating to noncommercial motor 
     vehicles when necessary to promote the safe operation of 
     commercial motor vehicles if the number of motor carrier 
     safety activities (including roadside safety inspections) 
     conducted in the State is maintained at a level at least 
     equal to the average level of such activities conducted in 
     the State in fiscal years 2003, 2004, and 2005; except that 
     the State may not use more than 5 percent of the basic amount 
     the State receives under the grant under subsection (a) for 
     enforcement activities relating to noncommercial motor 
     vehicles described in this paragraph unless the Secretary 
     determines a higher percentage will result in significant 
     increases in commercial motor vehicle safety.''; and
       (2) by adding at the end the following:
       ``(e) Annual Report.--The Secretary shall submit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science and 
     Transportation of the Senate an annual report that--
       ``(1) analyzes commercial motor vehicle safety trends among 
     the States and documents the most effective commercial motor 
     vehicle safety programs implemented with grants under this 
     section; and
       ``(2) describes the effect of activities carried out with 
     grants made under this section on commercial motor vehicle 
     safety.''.

     SEC. 4107. HIGH PRIORITY ACTIVITIES AND NEW ENTRANTS AUDITS.

       (a) High Priority Activities.--Section 31104 of title 49, 
     United States Code (as amended by section 4101 of this Act), 
     is amended by adding at the end the following:
       ``(k) High-Priority Activities.--
       ``(1) Criteria.--The Secretary shall establish safety 
     performance criteria to be used to distribute high priority 
     program funds under this subsection.
       ``(2) Set aside.--The Secretary may set aside from amounts 
     made available by subsection (a) up to $15,000,000 for each 
     of fiscal years 2006 through 2009 for States, local 
     governments, and organizations representing government 
     agencies or officials described in paragraph (3) for carrying 
     out high priority activities and projects that improve 
     commercial motor vehicle safety and compliance with 
     commercial motor vehicle safety regulations (including 
     activities and projects that are national in scope), increase 
     public awareness and education, demonstrate new technologies, 
     and reduce the number and rate of accidents involving 
     commercial motor vehicles.
       ``(3) Description of recipients.--Amounts set aside under 
     this subsection shall be allocated by the Secretary only to 
     State agencies, local governments, and organizations 
     representing government agencies or officials that use and 
     train qualified officers and employees in coordination with 
     State motor vehicle safety agencies.
       ``(4) Limitation.--At least 90 percent of the amounts set 
     aside for a fiscal year under this subsection shall be 
     awarded in grants to State agencies and local government 
     agencies.''.
       (b) New Entrant Audits.--Section 31104 of such title is 
     amended--
       (1) by redesignating the second subsection as subsection 
     (f); and
       (2) by adding at the end of such subsection the following:
       ``(5) New entrant audits.--
       ``(A) Grants.--The Secretary may make grants to States and 
     local governments for new

[[Page H7381]]

     entrant motor carrier audits under this subsection without 
     requiring a matching contribution from such States and local 
     governments.
       ``(B) Set aside.--The Secretary shall set aside from 
     amounts made available by section 31104(a) up to $29,000,000 
     per fiscal year for audits of new entrant motor carriers 
     conducted pursuant to this paragraph.
       ``(C) Determination.--If the Secretary determines that a 
     State or local government is not able to use government 
     employees to conduct new entrant motor carrier audits, the 
     Secretary may use the funds set aside under this paragraph to 
     conduct audits for such States or local governments.''.

     SEC. 4108. DATA QUALITY IMPROVEMENT.

       (a) In General.--Section 31106(a)(3) of title 49, United 
     States Code, is amended--
       (1) by striking ``and'' at the end of subparagraph (D);
       (2) by striking the period at the end of subparagraph (E) 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(F) ensure, to the maximum extent practical, all the data 
     is complete, timely, and accurate across all information 
     systems and initiatives; and
       ``(G) establish and implement a national motor carrier 
     safety data correction system.''.
       (b) Report on Status of Safety Fitness Rating System 
     Revision.--Not later than 1 year after the date of enactment 
     of this Act, the Secretary shall submit to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives a report on the status of revision of the 
     safety fitness rating system of motor carriers.

     SEC. 4109. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM 
                   MANAGEMENT.

       (a) Design and Conditions for Participation.--Section 
     31106(b) of title 49, United States Code, is amended by 
     striking paragraphs (2), (3), and (4) and inserting the 
     following:
       ``(2) Design.--The program shall link Federal motor carrier 
     safety information systems with State commercial vehicle 
     registration and licensing systems and shall be designed to 
     enable a State to--
       ``(A) determine the safety fitness of a motor carrier or 
     registrant when licensing or registering the registrant or 
     motor carrier or while the license or registration is in 
     effect; and
       ``(B) deny, suspend, or revoke the commercial motor vehicle 
     registrations of a motor carrier or registrant that has been 
     issued an operations out-of-service order by the Secretary.
       ``(3) Conditions for participation.--The Secretary shall 
     require States, as a condition of participation in the 
     program, to--
       ``(A) comply with the uniform policies, procedures, and 
     technical and operational standards prescribed by the 
     Secretary under subsection (a)(4);
       ``(B) possess or seek the authority to possess for a time 
     period no longer than determined reasonable by the Secretary, 
     to impose sanctions relating to commercial motor vehicle 
     registration on the basis of a Federal safety fitness 
     determination; and
       ``(C) establish and implement a process to cancel the motor 
     vehicle registration and seize the registration plates of a 
     vehicle when an employer is found liable under section 
     31310(i)(2)(C) for knowingly allowing or requiring an 
     employee to operate such a commercial motor vehicle in 
     violation of an out-of-service order.
       ``(4) Grants.--From the funds authorized by section 
     31104(i), the Secretary may make a grant in a fiscal year to 
     a State to implement the performance and registration 
     information system management requirements of this 
     subsection.''.
       (b) Performance and Registration Information System 
     Management Grants.--
       (1) In general.--Subchapter I of chapter 311 of title 49, 
     United States Code, is further amended by adding at the end 
     the following:

     ``Sec. 31109. Performance and registration information System 
       management

       ``The Secretary of Transportation may make a grant to a 
     State to implement the performance and registration 
     information system management requirements of section 
     31106(b).''.
       (2) Conforming amendment.--The analysis for such subchapter 
     is amended by adding at the end the following:

``31109. Performance and registration information system management.''.

     SEC. 4110. BORDER ENFORCEMENT GRANTS.

       (a) In General.--Chapter 311 of title 49, United States 
     Code, is amended--
       (1) by striking the heading for subchapter I and inserting 
     the following:

       ``SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS''; and

       (2) by striking section 31107 and inserting the following:

     ``Sec. 31107. Border enforcement grants

       ``(a) General Authority.--The Secretary of Transportation 
     may make a grant in a fiscal year to an entity or State that 
     shares a land border with another country for carrying out 
     border commercial motor vehicle safety programs and related 
     enforcement activities and projects.
       ``(b) Maintenance of Expenditures.--The Secretary may make 
     a grant to a State under this section only if the State 
     agrees that the total expenditure of amounts of the State and 
     political subdivisions of the State, exclusive of amounts 
     from the United States, for carrying out border commercial 
     motor vehicle safety programs and related enforcement 
     activities and projects will be maintained at a level at 
     least equal to the average level of that expenditure by the 
     State and political subdivisions of the State for the last 2 
     fiscal years of the State or the Federal Government ending 
     before October 1, 2005, whichever the State designates.
       ``(c) Governments Share of Costs.--The Secretary shall 
     reimburse a State under a grant made under this section an 
     amount that is not more than 100 percent of the costs 
     incurred by the State in a fiscal year for carrying out 
     border commercial motor vehicle safety programs and related 
     enforcement activities and projects.
       ``(d) Availability and Reallocation of Amounts.--
     Allocations to a State remain available for expenditure in 
     the State for the fiscal year in which they are allocated and 
     for the next fiscal year. Amounts not expended by a State 
     during those 2 fiscal years are available to the Secretary 
     for reallocation under this section.''.
       (b) Clerical Amendments.--
       (1) Item relating to subchapter I.--The analysis for such 
     chapter is amended by striking the item relating to 
     subchapter I and inserting the following:

         ``SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS''.

       (2) Item relating to section 31107.--The analysis for such 
     chapter is amended by striking the item relating to section 
     31107 and inserting the following:

``31107. Border enforcement grants.''.

     SEC. 4111. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.

       (a) In General.--Section 31108 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 31108. Motor carrier research and technology program

       ``(a) Research, Technology, and Technology Transfer 
     Activities.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish and carry out a motor carrier and motor coach 
     research and technology program.
       ``(2) Multiyear plan.--The program must include a multi-
     year research plan that focuses on nonredundant innovative 
     research and shall be coordinated with other research 
     programs or projects ongoing or planned within the Department 
     of Transportation, as appropriate.
       ``(3) Research, development, and technology transfer 
     activities.--The Secretary may carry out under the program 
     research, development, technology, and technology transfer 
     activities with respect to--
       ``(A) the causes of accidents, injuries, and fatalities 
     involving commercial motor vehicles;
       ``(B) means of reducing the number and severity of 
     accidents, injuries, and fatalities involving commercial 
     motor vehicles;
       ``(C) improving the safety and efficiency of commercial 
     motor vehicles through technological innovation and 
     improvement;
       ``(D) improving technology used by enforcement officers 
     when conducting roadside inspections and compliance reviews 
     to increase efficiency and information transfers; and
       ``(E) increasing the safety and security of hazardous 
     materials transportation.
       ``(4) Tests and development.--The Secretary may test, 
     develop, or assist in testing and developing any material, 
     invention, patented article, or process related to the 
     research and technology program.
       ``(5) Training.--The Secretary may use the funds made 
     available to carry out this section for training or education 
     of commercial motor vehicle safety personnel, including 
     training in accident reconstruction and detection of 
     controlled substances or other contraband and stolen cargo or 
     vehicles.
       ``(6) Procedures.--The Secretary may carry out this 
     section--
       ``(A) independently;
       ``(B) in cooperation with other Federal departments, 
     agencies, and instrumentalities and Federal laboratories; or
       ``(C) by making grants to, or entering into contracts and 
     cooperative agreements with, any Federal laboratory, State 
     agency, authority, association, institution, for-profit or 
     nonprofit corporation, organization, foreign country, or 
     person.
       ``(7) Development and promotion of use of products.--The 
     Secretary shall use funds made available to carry out this 
     section to develop, administer, communicate, and promote the 
     use of products of research, technology, and technology 
     transfer programs under this section.
       ``(b) Collaborative Research and Development.--
       ``(1) In general.--To advance innovative solutions to 
     problems involving commercial motor vehicle and motor carrier 
     safety, security, and efficiency, and to stimulate the 
     deployment of emerging technology, the Secretary may carry 
     out, on a cost-shared basis, collaborative research and 
     development with--
       ``(A) non-Federal entities, including State and local 
     governments, foreign governments, colleges and universities, 
     corporations, institutions, partnerships, and sole 
     proprietorships that are incorporated or established under 
     the laws of any State; and
       ``(B) Federal laboratories.
       ``(2) Cooperative agreements.--In carrying out this 
     subsection, the Secretary may enter into cooperative research 
     and development agreements (as defined in section 12 of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a)).
       ``(3) Cost sharing.--
       ``(A) Federal share.--The Federal share of the cost of 
     activities carried out under a cooperative research and 
     development agreement entered into under this subsection 
     shall not exceed 50 percent; except that, if there is 
     substantial public interest or benefit associated with any 
     such activity, the Secretary may approve a greater Federal 
     share.
       ``(B) Treatment of directly incurred non-federal costs.--
     All costs directly incurred by the non-Federal partners, 
     including personnel, travel, and hardware or software 
     development

[[Page H7382]]

     costs, shall be credited toward the non-Federal share of the 
     cost of the activities described in subparagraph (A).
       ``(4) Use of technology.--The research, development, or use 
     of a technology under a cooperative research and development 
     agreement entered into under this subsection, including the 
     terms under which the technology may be licensed and the 
     resulting royalties may be distributed, shall be subject to 
     the Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3701 et seq.).''.
       (b) Clerical Amendment.--The analysis for chapter 311 of 
     such title is amended by striking the item relating to 
     section 31108 and inserting the following:

``31108. Motor carrier research and technology program.''.

     SEC. 4112. NEBRASKA CUSTOM HARVESTERS LENGTH EXEMPTION.

       (a) In General.--Section 31112(c) of title 49, United 
     States Code, is amended by adding at the end the following:
       ``(5) Nebraska may allow the operation of a truck tractor 
     and 2 trailers or semitrailers not in actual lawful operation 
     on a regular or periodic basis on June 1, 1991, if the length 
     of the property-carrying units does not exceed 81 feet 6 
     inches and such combination is used only to transport 
     equipment utilized by custom harvesters under contract to 
     agricultural producers to harvest one or more of wheat, 
     soybeans, and milo during the harvest months for such crops, 
     as defined by the State of Nebraska.''.
       (b) Conforming Amendment.--Such section 31112(c) is amended 
     by striking the subsection designation and heading and 
     inserting the following:
       ``(c) Special Rules for Wyoming, Ohio, Alaska, Iowa, and 
     Nebraska.--''.

     SEC. 4113. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER 
                   MANAGEMENT.

       (a) Duties of Employers and Employees.--Section 31135 of 
     title 49, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``Each''; and
       (2) by adding at the end the following:
       ``(b) Pattern of Noncompliance.--If the Secretary finds 
     that an officer of a motor carrier engages or has engaged in 
     a pattern or practice of avoiding compliance, or masking or 
     otherwise concealing noncompliance, with regulations on 
     commercial motor vehicle safety prescribed under this 
     subchapter, while serving as an officer of any motor carrier, 
     the Secretary may suspend, amend, or revoke any part of the 
     motor carrier's registration under section 13905.
       ``(c) Regulations.--Not later than 1 year after the date of 
     enactment of this subsection, the Secretary shall by 
     regulation establish standards to implement subsection (b).
       ``(d) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Motor carrier.--The term `motor carrier' has the 
     meaning such term has under section 13102.
       ``(2) Officer.--The term `officer' means an owner, 
     director, chief executive officer, chief operating officer, 
     chief financial officer, safety director, vehicle maintenance 
     supervisor, and driver supervisor of a motor carrier, 
     regardless of the title attached to those functions, and any 
     person, however designated, exercising controlling influence 
     over the operations of a motor carrier.''.
       (b) Cross Reference.--Section 13902(a)(1)(B) of such title 
     is amended to read as follows:
       ``(B)(i) any safety regulations imposed by the Secretary;
       ``(ii) the duties of employers and employees established by 
     the Secretary under section 31135; and
       ``(iii) the safety fitness requirements established by the 
     Secretary under section 31144; and''.

     SEC. 4114. INTRASTATE OPERATIONS OF INTERSTATE MOTOR 
                   CARRIERS.

       (a) In General.--Section 31144(a) of title 49, United 
     States Code, is amended to read as follows:
       ``(a) In General.--The Secretary shall--
       ``(1) determine whether an owner or operator is fit to 
     operate safely commercial motor vehicles, utilizing among 
     other things the accident record of an owner or operator 
     operating in interstate commerce and the accident record and 
     safety inspection record of such owner or operator--
       ``(A) in operations that affect interstate commerce within 
     the United States; and
       ``(B) in operations in Canada and Mexico if the owner or 
     operator also conducts operations within the United States;
       ``(2) periodically update such safety fitness 
     determinations;
       ``(3) make such final safety fitness determinations readily 
     available to the public; and
       ``(4) prescribe by regulation penalties for violations of 
     this section consistent with section 521.''.
       (b) Prohibited Transportation.--The first subsection (c) of 
     section 31144 of such title is amended by adding at the end 
     the following:
       ``(5) Transportation affecting interstate commerce.--Owners 
     or operators of commercial motor vehicles prohibited from 
     operating in interstate commerce pursuant to paragraphs (1) 
     through (3) of this section may not operate any commercial 
     motor vehicle that affects interstate commerce until the 
     Secretary determines that such owner or operator is fit.''.
       (c) Determination of Unfitness by State.--Section 31144 of 
     such title is amended--
       (1) by redesignating subsections (d), (e), and the second 
     subsection (c) as subsections (e), (f), and (g), 
     respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) Determination of Unfitness by State.--If a State that 
     receives motor carrier safety assistance program funds under 
     section 31102 determines, by applying the standards 
     prescribed by the Secretary under subsection (b), that an 
     owner or operator of a commercial motor vehicle that has its 
     principal place of business in that State and operates in 
     intrastate commerce is unfit under such standards and 
     prohibits the owner or operator from operating such vehicle 
     in the State, the Secretary shall prohibit the owner or 
     operator from operating such vehicle in interstate commerce 
     until the State determines that the owner or operator is 
     fit.''.

     SEC. 4115. TRANSFER PROVISION.

       (a) In General.--Title II of the Motor Carrier Safety 
     Improvement Act of 1999 (113 Stat. 1748-1773) is amended by 
     inserting after section 228--
       (1) the following:

     ``SEC. 229. CERTAIN EXEMPTIONS.''; AND

       (2) the text of section 345 of the National Highway System 
     Designation Act of 1995 (49 U.S.C. 31136 note).
       (b) Clerical Amendment.--The table of contents for such Act 
     is amended by inserting after the item relating to section 
     228 the following:

``Sec. 229. Certain exemptions.''.

       (c) Conforming Amendment.--Section 229 of such Act (as 
     added by this section) is amended by striking subsection (f).
       (d) Conforming Repeal.--Section 345 of the National Highway 
     System Designation Act of 1995 (49 U.S.C. 31136 note; 109 
     Stat. 613) is repealed.

     SEC. 4116. MEDICAL PROGRAM.

       (a) In General.--Subchapter III of chapter 311 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 31149. Medical program

       ``(a) Medical Review Board.--
       ``(1) Establishment and function.--The Secretary of 
     Transportation shall establish a Medical Review Board to 
     provide the Federal Motor Carrier Safety Administration with 
     medical advice and recommendations on medical standards and 
     guidelines for the physical qualifications of operators of 
     commercial motor vehicles, medical examiner education, and 
     medical research.
       ``(2) Composition.--The Medical Review Board shall be 
     appointed by the Secretary and shall consist of 5 members 
     selected from medical institutions and private practice. The 
     membership shall reflect expertise in a variety of medical 
     specialties relevant to the driver fitness requirements of 
     the Federal Motor Carrier Safety Administration.
       ``(b) Chief Medical Examiner.--The Secretary shall appoint 
     a chief medical examiner who shall be an employee of the 
     Federal Motor Carrier Safety Administration and who shall 
     hold a position under section 3104 of title 5, United States 
     Code, relating to employment of specially qualified 
     scientific and professional personnel, and shall be paid 
     under section 5376 of title 5, United States Code, relating 
     to pay for certain senior-level positions.
       ``(c) Medical Standards and Requirements.--
       ``(1) In general.--The Secretary, with the advice of the 
     Medical Review Board and the chief medical examiner, shall--
       ``(A) establish, review, and revise--
       ``(i) medical standards for operators of commercial motor 
     vehicles that will ensure that the physical condition of 
     operators of commercial motor vehicles is adequate to enable 
     them to operate the vehicles safely;
       ``(ii) requirements for periodic physical examinations of 
     such operators performed by medical examiners who have, at a 
     minimum, self-certified that they have completed training in 
     physical and medical examination standards and are listed on 
     a national registry maintained by the Department of 
     Transportation; and
       ``(B) require each such operator to have a current valid 
     medical certificate;
       ``(C) conduct periodic reviews of a select number of 
     medical examiners on the national registry to ensure that 
     proper examinations of such operators are being conducted;
       ``(D) develop, as appropriate, specific courses and 
     materials for medical examiners listed in the national 
     registry established under this section, and require those 
     medical examiners to, at a minimum, self-certify that they 
     have completed specific training, including refresher 
     courses, to be listed in the registry;
       ``(E) require medical examiners to transmit the name of the 
     applicant and numerical identifier, as determined by the 
     Administrator of the Federal Motor Carrier Safety 
     Administration, for any completed medical examination report 
     required under section 391.43 of title 49, Code of Federal 
     Regulations, electronically to the chief medical examiner on 
     monthly basis; and
       ``(F) periodically review a representative sample of the 
     medical examination reports associated with the name and 
     numerical identifiers of applicants transmitted under 
     subparagraph (E) for errors, omissions, or other indications 
     of improper certification.
       ``(2) Monitoring performance.--The Secretary shall 
     investigate patterns of errors or improper certification by a 
     medical examiner. If the Secretary finds that a medical 
     examiner has issued a medical certificate to an operator of a 
     commercial motor vehicle who fails to meet the applicable 
     standards at the time of the examination or that a medical 
     examiner has falsely claimed to have completed training in 
     physical and medical examination standards as required by 
     this section, the Secretary may remove such medical examiner 
     from the registry and may void the medical certificate of the 
     applicant or holder.
       ``(d) National Registry of Medical Examiners.--The 
     Secretary, acting through the Federal Motor Carrier Safety 
     Administration--
       ``(1) shall establish and maintain a current national 
     registry of medical examiners who are qualified to perform 
     examinations and issue medical certificates;

[[Page H7383]]

       ``(2) shall remove from the registry the name of any 
     medical examiner that fails to meet or maintain the 
     qualifications established by the Secretary for being listed 
     in the registry or otherwise does not meet the requirements 
     of this section or regulation issued under this section;
       ``(3) shall accept as valid only medical certificates 
     issued by persons on the national registry of medical 
     examiners; and
       ``(4) may make participation of medical examiners in the 
     national registry voluntary if such a change will enhance the 
     safety of operators of commercial motor vehicles.
       ``(e) Regulations.--The Secretary such regulations as may 
     be necessary to carry out this section.''.
       (b) Medical Examiners.--Section 31136(a)(3) of such title 
     is amended to read as follows:
       ``(3) the physical condition of operators of commercial 
     motor vehicles is adequate to enable them to operate the 
     vehicles safely and the periodic physical examinations 
     required of such operators are performed by medical examiners 
     who have received training in physical and medical 
     examination standards and, after the national registry 
     maintained by the Department of Transportation under section 
     31149(d) is established, are listed on such registry; and''.
       (c) Definition of Medical Examiner.--Section 31132 of such 
     title is amended--
       (1) by redesignating paragraphs (6) through (10) as 
     paragraphs (7) through (11), respectively; and
       (2) by inserting after paragraph (5) the following:
       ``(6) `medical examiner' means an individual licensed, 
     certified, or registered in accordance with regulations 
     issued by the Federal Motor Carrier Safety Administration as 
     a medical examiner.''.
       (d) Funding.--Amounts made available pursuant to section 
     31104(i) of title 49, United States Code, shall be used by 
     the Secretary to carry out section 31149 of title 49, United 
     States Code.
       (e) Clerical Amendment.--The analysis for such subchapter 
     is amended by inserting after the item relating to section 
     31148 the following:

``31149. Medical program.''.

       (f) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the 365th day following the date of 
     enactment of this Act.

     SEC. 4117. SAFETY PERFORMANCE HISTORY SCREENING.

       (a) In General.--Subchapter III of chapter 311 of title 49, 
     United States Code (as amended by section 4116 of this Act), 
     is amended by adding at the end the following:

     ``Sec. 31150. Safety performance history screening

       ``(a) In General.--The Secretary of Transportation shall 
     provide persons conducting preemployment screening services 
     for the motor carrier industry electronic access to the 
     following reports contained in the Motor Carrier Management 
     Information System:
       ``(1) Commercial motor vehicle accident reports.
       ``(2) Inspection reports that contain no driver-related 
     safety violations.
       ``(3) Serious driver-related safety violation inspection 
     reports.
       ``(b) Conditions on Providing Access.--Before providing a 
     person access to the Motor Carrier Management Information 
     System under subsection (a), the Secretary shall--
       ``(1) ensure that any information that is released to such 
     person will be in accordance with the Fair Credit Reporting 
     Act (15 U.S.C. 1681 et seq.) and all other applicable Federal 
     law;
       ``(2) ensure that such person will not conduct a screening 
     without the operator-applicant's written consent;
       ``(3) ensure that any information that is released to such 
     person will not be released to any person or entity, other 
     than the motor carrier requesting the screening services or 
     the operator-applicant, unless expressly authorized or 
     required by law; and
       ``(4) provide a procedure for the operator-applicant to 
     correct inaccurate information in the System in a timely 
     manner.
       ``(c) Design.--The process for providing access to the 
     Motor Carrier Management Information System under subsection 
     (a) shall be designed to assist the motor carrier industry in 
     assessing an individual operator's crash and serious safety 
     violation inspection history as a preemployment condition. 
     Use of the process shall not be mandatory and may only be 
     used during the preemployment assessment of an operator-
     applicant.
       ``(d) Serious Driver-Related Safety Violation Defined.--In 
     this section, the term `serious driver-related violation' 
     means a violation by an operator of a commercial motor 
     vehicle that the Secretary determines will result in the 
     operator being prohibited from continuing to operate a 
     commercial motor vehicle until the violation is corrected.''.
       (b) Clerical Amendment.--The analysis for such subchapter 
     (as amended by section 4116 of this Act) is amended by adding 
     at the end the following:

``31150. Safety performance history screening.''.

     SEC. 4118. ROADABILITY.

       (a) In General.--Subchapter III of chapter 311 of title 49, 
     United States Code (as amended by sections 4116 and 4117 of 
     this Act) is amended by adding at the end the following:

     ``Sec. 31151. Roadability

       ``(a) Inspection, Repair, and Maintenance of Intermodal 
     Equipment.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary of Transportation, 
     after providing notice and opportunity for comment, shall 
     issue regulations establishing a program to ensure that 
     intermodal equipment used to transport intermodal containers 
     is safe and systematically maintained.
       ``(2) Intermodal equipment safety regulations.--The 
     Secretary shall issue the regulations under this section as a 
     subpart of the Federal motor carry safety regulations.
       ``(3) Contents.--The regulations issued under this section 
     shall include, at a minimum--
       ``(A) a requirement to identify intermodal equipment 
     providers responsible for the inspection and maintenance of 
     intermodal equipment that is interchanged or intended for 
     interchange to motor carriers in intermodal transportation;
       ``(B) a requirement to match intermodal equipment readily 
     to an intermodal equipment provider through a unique 
     identifying number;
       ``(C) a requirement that an intermodal equipment provider 
     identified under subparagraph (A) systematically inspect, 
     repair, and maintain, or cause to be systematically 
     inspected, repaired, and maintained, intermodal equipment 
     described in subparagraph (A) that is intended for 
     interchange with a motor carrier;
       ``(D) a requirement to ensure that each intermodal 
     equipment provider identified under subparagraph (A) 
     maintains a system of maintenance and repair records for such 
     equipment;
       ``(E) requirements that--
       ``(i) a specific list of intermodal equipment components or 
     items be identified for the visual or audible inspection of 
     which a driver is responsible before operating the equipment 
     over the road; and
       ``(ii) the inspection under clause (i) be conducted as part 
     of the Federal requirement in effect on the date of enactment 
     of this Act that a driver be satisfied that the intermodal 
     equipment components are in good working order before the 
     equipment is operated over the road;
       ``(F) a requirement that a facility at which an intermodal 
     equipment provider regularly makes intermodal equipment 
     available for interchange have an operational process and 
     space readily available for a motor carrier to have an 
     equipment defect identified pursuant to subparagraph (E) 
     repaired or the equipment replaced prior to departure;
       ``(G) a program for the evaluation and audit of compliance 
     by intermodal equipment providers with applicable Federal 
     motor carrier safety regulations;
       ``(H) 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
       ``(I) a prohibition on intermodal equipment providers from 
     placing intermodal equipment in service on the public 
     highways to the extent such providers or their equipment are 
     found to pose an imminent hazard;
       ``(J) a process by which motor carriers and agents of motor 
     carriers shall be able to request the Federal Motor Carrier 
     Safety Administration to undertake an investigation of an 
     intermodal equipment provider identified under subparagraph 
     (A) that is alleged to be not in compliance with the 
     regulations under this section;
       ``(K) a process by which equipment providers and agents of 
     equipment providers shall be able to request the 
     Administration to undertake an investigation of a motor 
     carrier that is alleged to be not in compliance with the 
     regulations issued under this section;
       ``(L) a process by which a driver or motor carrier 
     transporting intermodal equipment is required to report to 
     the intermodal equipment provider or the provider's 
     designated agent any actual damage or defect in the 
     intermodal equipment of which the driver or motor carrier is 
     aware at the time the intermodal equipment is returned to the 
     intermodal equipment provider or the provider's designated 
     agent;
       ``(M) a requirement that any actual damage or defect 
     identified in the process established under subparagraph (L) 
     be repaired before the equipment is made available for 
     interchange to a motor carrier and that repairs of equipment 
     made pursuant to the requirements of this subparagraph and 
     reports made pursuant to the subparagraph (L) process be 
     documented in the maintenance records for such equipment; and
       ``(N) a procedure under which motor carriers, drivers and 
     intermodal equipment providers may seek correction of their 
     motor carrier safety records through the deletion from those 
     records of violations of safety regulations attributable to 
     deficiencies in the intermodal chassis or trailer for which 
     they should not have been held responsible.
       ``(4) Deadline for rulemaking proceeding.--Not later than 
     120 days after the date of enactment of this section, the 
     Secretary shall initiate a rulemaking proceeding for issuance 
     of the regulations under this section.
       ``(b) Inspection, Repair, and Maintenance of Intermodal 
     Equipment.--The Secretary or an employee of the Department of 
     Transportation designated by the Secretary may inspect 
     intermodal equipment, and copy related maintenance and repair 
     records for such equipment, on demand and display of proper 
     credentials.
       ``(c) Out-of-Service Until Repair.--Any intermodal 
     equipment that is determined under this section to fail to 
     comply with applicable Federal safety regulations may be 
     placed out of service by the Secretary or a Federal, State, 
     or government official designated by the Secretary and may 
     not be used on a public highway until the repairs necessary 
     to bring such equipment into compliance have been completed. 
     Repairs of equipment taken out of service shall be documented 
     in the maintenance records for such equipment.
       ``(d) Preemption Generally.--Except as provided in 
     subsection (e), a law, regulation, order, or other 
     requirement of a State, a political subdivision of a State, 
     or a tribal organization relating to commercial motor vehicle 
     safety is preempted if such law, regulation, order, or other 
     requirement exceeds or is inconsistent with a requirement 
     imposed under or pursuant to this section.
       ``(e) Pre-Existing State Requirements.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State requirement for the periodic

[[Page H7384]]

     inspection of intermodal chassis by intermodal equipment 
     providers that was in effect on January 1, 2005, shall remain 
     in effect only until the date on which requirements 
     prescribed under this section take effect.
       ``(2) Nonpreemption determinations.--
       ``(A) In general.--Notwithstanding subsection (d), a State 
     requirement described in paragraph (1) is not preempted by a 
     Federal requirement prescribed under this section if the 
     Secretary determines that the State requirement is as 
     effective as the Federal requirement and does not unduly 
     burden interstate commerce.
       ``(B) Application required.--Subparagraph (A) applies to a 
     State requirement only if the State applies to the Secretary 
     for a determination under this paragraph with respect to the 
     requirement before the date on which the regulations issued 
     under this section take effect. The Secretary shall make a 
     determination with respect to any such application within 
     6 months after the date on which the Secretary receives 
     the application.
       ``(C) Amended state requirements.--Any amendment to a State 
     requirement not preempted under this subsection because of a 
     determination by the Secretary under subparagraph (A) may not 
     take effect unless--
       ``(i) it is submitted to the Secretary before the effective 
     date of the amendment; and
       ``(ii) the Secretary determines that the amendment would 
     not cause the State requirement to be less effective than the 
     Federal requirement and would not unduly burden interstate 
     commerce.
       ``(f) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Intermodal equipment.--The term `intermodal 
     equipment' means trailing equipment that is used in the 
     intermodal transportation of containers over public highways 
     in interstate commerce, including trailers and chassis.
       ``(2) Intermodal equipment interchange agreement.--The term 
     `intermodal equipment interchange agreement' means the 
     Uniform Intermodal Interchange and Facilities Access 
     Agreement or any other written document executed by an 
     intermodal equipment provider or its agent and a motor 
     carrier or its agent, the primary purpose of which is to 
     establish the responsibilities and liabilities of both 
     parties with respect to the interchange of the intermodal 
     equipment.
       ``(3) Intermodal equipment provider.--The term `intermodal 
     equipment provider' means any person that interchanges 
     intermodal equipment with a motor carrier pursuant to a 
     written interchange agreement or has a contractual 
     responsibility for the maintenance of the intermodal 
     equipment.
       ``(4) Interchange.--The term `interchange'--
       ``(A) means the act of providing intermodal equipment to a 
     motor carrier pursuant to an intermodal equipment interchange 
     agreement for the purpose of transporting the equipment for 
     loading or unloading by any person or repositioning the 
     equipment for the benefit of the equipment provider; but
       ``(B) does not include the leasing of equipment to a motor 
     carrier for primary use in the motor carrier's freight 
     hauling operations.''.
       (b) Clerical Amendment.--The analysis for such subchapter 
     (as amended by sections 4116 and 4117 of this Act) is amended 
     by adding at the end the following:

``31151. Roadability.''.

     SEC. 4119. INTERNATIONAL COOPERATION.

       (a) In General.--Chapter 311 of title 49, United States 
     Code, is amended by adding at the end the following:

                     ``SUBCHAPTER IV--MISCELLANEOUS

     ``Sec. 31161. International cooperation

       ``The Secretary of Transportation is authorized to use 
     funds made available by section 31104(i) to participate and 
     cooperate in international activities to enhance motor 
     carrier, commercial motor vehicle, driver, and highway safety 
     by such means as exchanging information, conducting research, 
     and examining needs, best practices, and new technology.''.
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by adding at the end the following:

                     ``SUBCHAPTER IV--MISCELLANEOUS

``31161. International cooperation.''.

     SEC. 4120. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR 
                   CARRIERS.

       (a) Transportation of Passengers.--
       (1) General requirement.--Section 31138(a) of title 49, 
     United States Code, is amended--
       (A) by striking ``for compensation''; and
       (B) by inserting ``commercial'' before ``motor vehicle''.
       (2) Other persons.--Section 31138(c) of such title is 
     amended by adding at the end the following:
       ``(4) Other persons.--The Secretary may require a person, 
     other than a motor carrier (as defined in section 13102), 
     transporting passengers by commercial motor vehicle to file 
     with the Secretary the evidence of financial responsibility 
     specified in subsection (c)(1) in an amount not less than the 
     greater of the amount required by subsection (b)(1) or the 
     amount required for such person to transport passengers under 
     the laws of the State or States in which the person is 
     operating; except that the amount of the financial 
     responsibility must be sufficient to pay not more than the 
     amount of the financial responsibility for each final 
     judgment against the person for bodily injury to, or death 
     of, an individual resulting from the negligent operation, 
     maintenance, or use of the commercial motor vehicle, or for 
     loss or damage to property, or both.''.
       (b) Transportation of Property.--Section 31139 of such 
     title is amended--
       (1) in subsection (b)(1)--
       (A) by striking ``for compensation''; and
       (B) by inserting ``commercial'' before ``motor vehicle'';
       (2) by redesignating subsections (c) through (g) as 
     subsections (d) through (h), respectively; and
       (3) by inserting after subsection (b) the following:
       ``(c) Filing of Evidence of Financial Responsibility.--The 
     Secretary may require a motor private carrier (as defined in 
     section 13102) to file with the Secretary the evidence of 
     financial responsibility specified in subsection (b) in an 
     amount not less than the greater of the minimum amount 
     required by this section or the amount required for such 
     motor private carrier to transport property under the laws of 
     the State or States in which the motor private carrier is 
     operating; except that the amount of the financial 
     responsibility must be sufficient to pay not more than the 
     amount of the financial responsibility for each final 
     judgment against the motor private carrier for bodily injury 
     to, or death of, an individual resulting from negligent 
     operation, maintenance, or use of the commercial motor 
     vehicle, or for loss or damage to property, or both.''.

     SEC. 4121. DEPOSIT OF CERTAIN CIVIL PENALTIES INTO HIGHWAY 
                   TRUST FUND.

       Sections 31138(d)(5) and 31139(f)(5) of title 49, United 
     States Code, are each amended by striking ``Treasury as 
     miscellaneous receipts'' and inserting ``Highway Trust Fund 
     (other than the Mass Transit Account)''.

     SEC. 4122. CDL LEARNER'S PERMIT PROGRAM.

       Chapter 313 of title 49, United States Code, is amended--
       (1) in section 31302 by inserting ``and may have only 1 
     learner's permit at any time'' after ``time'';
       (2) in section 31308--
       (A) by inserting after ``license'' the first place it 
     appears ``and learner's permits'' ;
       (B) by striking ``licenses.'' and inserting ``licenses and 
     permits.'';
       (C) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (D) by inserting after paragraph (1) the following:
       ``(2) before a commercial driver's license learner's permit 
     may be issued to an individual, the individual must pass a 
     written test, that complies with the minimum standards 
     prescribed by the Secretary under section 31305(a), on the 
     operation of the commercial motor vehicle that the individual 
     will be operating under the permit;''; and
       (E) in paragraphs (3) and (4) of section 31308 (as so 
     redesignated) and in section 31309 (b) by inserting after 
     ``license'' each place it appears ``or learner's permit''.

     SEC. 4123. COMMERCIAL DRIVER'S LICENSE INFORMATION SYSTEM 
                   MODERNIZATION.

       (a) Modernization Plan.--Section 31309 of title 49, United 
     States Code, is amended by adding at the end the following:
       ``(e) Modernization Plan.--
       ``(1) In general.--Not later than 120 days after the date 
     of enactment of this subsection, the Secretary shall develop 
     and publish a comprehensive national plan to modernize the 
     information system under this section that--
       ``(A) complies with applicable Federal information 
     technology security standards;
       ``(B) provides for the electronic exchange of all 
     information including the posting of convictions;
       ``(C) contains self auditing features to ensure that data 
     is being posted correctly and consistently by the States;
       ``(D) integrates the commercial driver's license and the 
     medical certificate; and
       ``(E) provides a schedule for modernization of the system.
       ``(2) Consultation.--The plan shall be developed in 
     consultation with representatives of the motor carrier 
     industry, State safety enforcement agencies, and State 
     licensing agencies designated by the Secretary.
       ``(3) State funding of future efforts.--The plan shall 
     specify that States will fund future efforts to modernize the 
     commercial driver's information system.
       ``(4) Deadline for state participation.--
       ``(A) In general.--The Secretary shall establish in the 
     plan a date by which all States must be operating commercial 
     driver's license information systems that are compatible with 
     the modernized information system under this section.
       ``(B) Factors to consider.--In establishing the date under 
     subparagraph (A), the Secretary shall consider the following:
       ``(i) Availability and cost of technology and equipment 
     needed to comply with subparagraph (A).
       ``(ii) Time necessary to install, and test the operation 
     of, such technology and equipment.
       ``(5) Implementation.--The Secretary shall implement the 
     plan developed under subsection (a) and modernize the 
     information system under this section to meet the 
     requirements of the plan.
       ``(f) Funding.--At the Secretary's discretion, a State may 
     use the funds made available to the State under section 31318 
     to modernize its commercial driver's license information 
     system to be compatible with the modernized information 
     system under this section.''.
       (b) State Participations.--Section 31311(a) of such title 
     is amended--
       (1) in paragraph (15) by striking ``(g)(1)(A), and (g)(2)'' 
     and inserting ``(i)(1)(A) and (i)(2)'';
       (2) in paragraph (17) by striking ``section 31310(h)'' and 
     inserting ``as 31310(j)''; and
       (3) by adding at the end the following:
       ``(21) By the date established by the Secretary under 
     section 31309(e)(4), the State shall be operating a 
     commercial driver's license information system that is 
     compatible with the modernized commercial driver's license 
     information system under section 31309.''.

[[Page H7385]]

       (c) Grants.--
       (1) In general.--The Secretary may make a grant to a State 
     or organization representing agencies and officials of a 
     State in a fiscal year to modernize the commercial driver's 
     license information system of the State to be compatible with 
     the modernized commercial driver's license information system 
     under section 31309 of title 49, United States Code, if the 
     State is in substantial compliance with the requirements of 
     section 31311 of such title and this section, as determined 
     by the Secretary.
       (2) Criteria.--The Secretary shall establish criteria for 
     the distribution of grants and notify each State annually of 
     such criteria.
       (3) Use of grant.--A State may use a grant under this 
     subsection only to implement improvements that are consistent 
     with the modernization plan developed by the Secretary.
       (4) Government share.--A grant under this subsection to a 
     State or organization may not be for more than 80 percent of 
     the costs incurred by the State or organization in a fiscal 
     year in modernizing the commercial driver's license 
     information system of the State to be compatible with the 
     modernized commercial driver's license information system 
     under section 31309 of title 49, United States Code. In 
     determining these costs, the Secretary shall include in-kind 
     contributions of the State.
       (d) Funding.--There are authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     to carry out this section--
       (1) $5,000,000 for fiscal year 2006;
       (2) $7,000,000 for fiscal year 2007;
       (3) $8,000,000 for fiscal year 2008; and
       (4) $8,000,000 for fiscal year 2009.
       (e) Contract Authority and Availability.--
       (1) Period of availability.--The amounts made available 
     under subsection (d) shall remain available until expended.
       (2) Initial date of availability.--Amounts authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) by subsection (d) shall be available for 
     obligation on the date of their apportionment or allocation 
     or on October 1 of the fiscal year for which they are 
     authorized, whichever occurs first.
       (3) Contract authority.--Approval by the Secretary of a 
     grant with funds made available under subsection (d) imposes 
     upon the United States a contractual obligation for payment 
     of the Government's share of costs incurred in carrying out 
     the objectives of the grant.
       (f) Baseline Audit.--Not later than 1 year after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the Inspector General of the Department of Transportation, 
     shall perform a baseline audit of the information system 
     maintained under section 31309 of title 49, United States 
     Code. The audit shall include--
       (1) an assessment of the validity of data in the 
     information system on a State-by-State basis;
       (2) an assessment of the extent to which convictions are 
     validly posted on a driver's record;
       (3) recommendations to the Secretary on how to update the 
     baseline audit annually to ensure that any shortcomings in 
     the information system are addressed, and a methodology for 
     conducting the update;
       (4) identification, on a State-by-State basis, of any 
     actions that the Inspector General finds necessary to improve 
     the integrity of data collected by the system and to ensure 
     the proper posting of convictions; and
       (5) an analysis of amounts and use of the revenues derived 
     from fees charged for use of the commercial driver's license 
     information system.

     SEC. 4124. COMMERCIAL DRIVER'S LICENSE IMPROVEMENTS.

       (a) State Grants.--Chapter 313 of title 49, United States 
     Code, is amended by inserting after section 31312 the 
     following:

     ``Sec. 31313. Grants for commercial driver's license program 
       improvements

       ``(a) Grants for Commercial Driver's License Program 
     Improvements.--
       ``(1) General authority.--The Secretary of Transportation 
     may make a grant to a State in a fiscal year--
       ``(A) to comply with the requirements of section 31311; and
       ``(B) in the case of a State that is making a good faith 
     effort toward substantial compliance with the requirements of 
     section 31311 and this section, to improve its implementation 
     of its commercial driver's license program.
       ``(2) Purposes for which grants may be used.--
       ``(A) In general.--A State may use grants under paragraphs 
     (1)(A) and (1)(B) only for expenses directly related to its 
     compliance with section 31311; except that a grant under 
     paragraph (1)(B) may be used for improving implementation of 
     the State's commercial driver's license program, including 
     expenses for computer hardware and software, publications, 
     testing, personnel, training, and quality control. The grant 
     may not be used to rent, lease, or buy land or buildings.
       ``(B) Priority.--In making grants under paragraph (1)(B), 
     the Secretary shall give priority to States that will use 
     such grants to achieve compliance with the requirements of 
     the Motor Carrier Safety Improvement Act of 1999, including 
     the amendments made by such Act.
       ``(3) Application.--In order to receive a grant under this 
     section, a State shall submit an application for such grant 
     that is in such form, and contains such information, as the 
     Secretary may require. The application shall include the 
     State's assessment of its commercial drivers license program.
       ``(4) Maintenance of expenditures.--The Secretary may make 
     a grant to a State under this subsection only if the State 
     agrees that the total expenditure of amounts of the State and 
     political subdivisions of the State, exclusive of amounts 
     from the United States, for the State's commercial driver's 
     license program will be maintained at a level at least equal 
     to the average level of that expenditure by the State and 
     political subdivisions of the State for the last 2 fiscal 
     years of the State ending before the date of enactment of the 
     this section.
       ``(5) Government share.--The Secretary shall reimburse a 
     State under a grant made under this subsection an amount that 
     is not more than 100 percent of the costs incurred by the 
     State in a fiscal year in complying with section 31311 and 
     improving its implementation of its commercial driver's 
     license program. In determining such costs, the Secretary 
     shall include in-kind contributions by the State. Amounts 
     required to be expended by the State under paragraph (4) may 
     not be included as part of the non-Federal share of such 
     costs.
       ``(b) High-Priority Activities.--
       ``(1) Grants for national concerns.--The Secretary may make 
     a grant to a State agency, local government, or other person 
     for 100 percent of the costs of research, development, 
     demonstration projects, public education, and other special 
     activities and projects relating to commercial driver 
     licensing and motor vehicle safety that are of benefit to all 
     jurisdictions of the United States or are designed to address 
     national safety concerns and circumstances.
       ``(2) Funding.--The Secretary may deduct up to 10 percent 
     of the amounts made available to carry out this section for a 
     fiscal year to make grants under this subsection.
       ``(c) Emerging Issues.--The Secretary may designate up to 
     10 percent of the amounts made available to carry out this 
     section for a fiscal year for allocation to a State agency, 
     local government, or other person at the discretion of the 
     Secretary to address emerging issues relating to commercial 
     driver's license improvements.
       ``(d) Apportionment.--Except as otherwise provided in 
     subsection (c), all amounts made available to carry out this 
     section for a fiscal year shall be apportioned to States 
     according to criteria prescribed by the Secretary.''.
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by inserting after the item relating to section 31312 
     the following:

``31313. Grants for commercial driver's license program 
              improvements.''.

       (c) Amounts Withheld.--Subsections (a) and (b) of section 
     31314 of such title are each amended by inserting ``up to'' 
     after ``withhold''.

     SEC. 4125. HOBBS ACT.

       (a) Jurisdiction of Court of Appeals Over Commercial Motor 
     Vehicle Safety Regulation and Operators and Motor Carrier 
     Safety.--Section 2342(3)(A) of title 28, United States Code, 
     is amended by inserting before ``of title 49'' the following: 
     ``, subchapter III of chapter 311, chapter 313, or chapter 
     315''.
       (b) Judicial Review.--Section 351(a) of title 49, United 
     States Code, is amended by striking ``Federal Highway 
     Administration'' and inserting ``Federal Motor Carrier Safety 
     Administration''.
       (c) Authority to Carry Out Certain Transferred Duties and 
     Powers.--Section 352 of title 49, United States Code, is 
     amended by striking ``Federal Highway Administration'' and 
     inserting ``Federal Motor Carrier Safety Administration''.

     SEC. 4126. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND 
                   NETWORKS DEPLOYMENT.

       (a) In General.--The Secretary shall carry out a commercial 
     vehicle information systems and networks program to--
       (1) improve the safety and productivity of commercial 
     vehicles and drivers; and
       (2) reduce costs associated with commercial vehicle 
     operations and Federal and State commercial vehicle 
     regulatory requirements.
       (b) Purpose.--The program shall advance the technological 
     capability and promote the deployment of intelligent 
     transportation system applications for commercial vehicle 
     operations, including commercial vehicle, commercial driver, 
     and carrier-specific information systems and networks.
       (c) Core Deployment Grants.--
       (1) In general.--The Secretary shall make grants to 
     eligible States for the core deployment of commercial vehicle 
     information systems and networks.
       (2) Amount of grants.--The maximum aggregate amount the 
     Secretary may grant to a State for the core deployment of 
     commercial vehicle information systems and networks under 
     this subsection and sections 5001(a)(5) and 5001(a)(6) of 
     the Transportation Equity Act for the 21st Century (112 
     Stat. 420) may not exceed $2,500,000.
       (3) Use of funds.--Funds from a grant under this subsection 
     may only be used for the core deployment of commercial 
     vehicle information systems and networks. An eligible State 
     that has either completed the core deployment of commercial 
     vehicle information systems and networks or completed such 
     deployment before grant funds are expended under this 
     subsection may use the grant funds for the expanded 
     deployment of commercial vehicle information systems and 
     networks in the State.
       (d) Expanded Deployment Grants.--
       (1) In general.--For each fiscal year, from the funds 
     remaining after the Secretary has made grants under 
     subsection (c), the Secretary may make grants to each 
     eligible State, upon request, for the expanded deployment of 
     commercial vehicle information systems and networks.
       (2) Eligibility.--Each State that has completed the core 
     deployment of commercial vehicle information systems and 
     networks in such State is eligible for an expanded deployment 
     grant under this subsection.
       (3) Amount of grants.--Each fiscal year, the Secretary may 
     distribute funds available for expanded deployment grants 
     equally among the

[[Page H7386]]

     eligible States, but not to exceed $1,000,000 per State.
       (4) Use of funds.--A State may use funds from a grant under 
     this subsection only for the expanded deployment of 
     commercial vehicle information systems and networks.
       (e) Eligibility.--To be eligible for a grant under this 
     section, a State--
       (1) shall have a commercial vehicle information systems and 
     networks program plan approved by the Secretary that 
     describes the various systems and networks at the State level 
     that need to be refined, revised, upgraded, or built to 
     accomplish deployment of core capabilities;
       (2) shall certify to the Secretary that its commercial 
     vehicle information systems and networks deployment 
     activities, including hardware procurement, software and 
     system development, and infrastructure modifications--
       (A) are consistent with the national intelligent 
     transportation systems and commercial vehicle information 
     systems and networks architectures and available standards; 
     and
       (B) promote interoperability and efficiency to the extent 
     practicable; and
       (3) shall agree to execute interoperability tests developed 
     by the Federal Motor Carrier Safety Administration to verify 
     that its systems conform with the national intelligent 
     transportation systems architecture, applicable standards, 
     and protocols for commercial vehicle information systems and 
     networks.
       (f) Federal Share.--The Federal share of the cost of a 
     project payable from funds made available to carry out this 
     section shall not exceed 50 percent. The total Federal share 
     of the cost of a project payable from all eligible Federal 
     sources shall not exceed 80 percent.
       (g) Definitions.--In this section, the following 
     definitions apply:
       (1) Commercial vehicle information systems and networks.--
     The term ``commercial vehicle information systems and 
     networks'' means the information systems and communications 
     networks that provide the capability to--
       (A) improve the safety of commercial motor vehicle 
     operations;
       (B) increase the efficiency of regulatory inspection 
     processes to reduce administrative burdens by advancing 
     technology to facilitate inspections and increase the 
     effectiveness of enforcement efforts;
       (C) advance electronic processing of registration 
     information, driver licensing information, fuel tax 
     information, inspection and crash data, and other safety 
     information;
       (D) enhance the safe passage of commercial motor vehicles 
     across the United States and across international borders; 
     and
       (E) promote the communication of information among the 
     States and encourage multistate cooperation and corridor 
     development.
       (2) Commercial motor vehicle operations.--The term 
     ``commercial motor vehicle operations''--
       (A) means motor carrier operations and motor vehicle 
     regulatory activities associated with the commercial motor 
     vehicle movement of goods, including hazardous materials, and 
     passengers; and
       (B) with respect to the public sector, includes the 
     issuance of operating credentials, the administration of 
     motor vehicle and fuel taxes, and roadside safety and border 
     crossing inspection and regulatory compliance operations.
       (3) Core deployment.--The term ``core deployment'' means 
     the deployment of systems in a State necessary to provide the 
     State with the following capabilities:
       (A) Safety information exchange to--
       (i) electronically collect and transmit commercial motor 
     vehicle and driver inspection data at a majority of 
     inspection sites in the State;
       (ii) connect to the safety and fitness electronic records 
     system for access to interstate carrier and commercial motor 
     vehicle data, summaries of past safety performance, and 
     commercial motor vehicle credentials information; and
       (iii) exchange carrier data and commercial motor vehicle 
     safety and credentials information within the State and 
     connect to such system for access to interstate carrier and 
     commercial motor vehicle data.
       (B) Interstate credentials administration to--
       (i) perform end-to-end processing, including carrier 
     application, jurisdiction application processing, and 
     credential issuance, of at least the international 
     registration plan and international fuel tax agreement 
     credentials and extend this processing to other credentials, 
     including intrastate registration, vehicle titling, oversize 
     vehicle permits, overweight vehicle permits, carrier 
     registration, and hazardous materials permits;
       (ii) connect to such plan and agreement clearinghouses; and
       (iii) have at least 10 percent of the credentialing 
     transaction volume in the State handled electronically and 
     have the capability to add more carriers and to extend to 
     branch offices where applicable.
       (C) Roadside electronic screening to electronically screen 
     transponder-equipped commercial vehicles at a minimum of one 
     fixed or mobile inspection site in the State and to replicate 
     this screening at other sites in the State.
       (4) Expanded deployment.--The term ``expanded deployment'' 
     means the deployment of systems in a State that exceed the 
     requirements of a core deployment of commercial vehicle 
     information systems and networks, improve safety and the 
     productivity of commercial motor vehicle operations, and 
     enhance transportation security.

     SEC. 4127. OUTREACH AND EDUCATION.

       (a) In General.--The Secretary shall conduct, through any 
     combination of grants, contracts, or cooperative agreements, 
     an outreach and education program to be administered by the 
     Federal Motor Carrier Safety Administration and the National 
     Highway Traffic Safety Administration.
       (b) Program Elements.--The program shall include, at a 
     minimum, the following:
       (1) A program to promote a more comprehensive and national 
     effort to educate commercial motor vehicle drivers and 
     passenger vehicle drivers about how commercial motor vehicle 
     drivers and passenger vehicle drivers can more safely share 
     the road with each other.
       (2) A program to promote enhanced traffic enforcement 
     efforts aimed at reducing the incidence of the most common 
     unsafe driving behaviors that cause or contribute to crashes 
     involving commercial motor vehicles and passenger vehicles.
       (3) A program to establish a public-private partnership to 
     provide resources and expertise for the development and 
     dissemination of information relating to sharing the road 
     referred to in paragraphs (1) and (2) to each partner's 
     constituents and to the general public through the use of 
     brochures, videos, paid and public advertisements, the 
     Internet, and other media.
       (c) Federal Share.--The Federal share of a program or 
     activity for which a grant is made under this section shall 
     be 100 percent of the cost of such program or activity.
       (d) Annual Report.--The Secretary shall prepare and 
     transmit to Congress an annual report on the programs and 
     activities carried out under this section. The final annual 
     report shall be submitted not later than September 30, 2009.
       (e) Funding.--From amounts made available under section 
     31104(i) of title 49, United States Code, the Secretary shall 
     make available $1,000,000 to the Federal Motor Carrier Safety 
     Administration, and $3,000,000 to the National Highway 
     Traffic Safety Administration, for each of fiscal years 2006, 
     2007, 2008, and 2009 to carry out this section (other than 
     subsection (f)).
       (f) Study.--The Comptroller General shall update the 
     Government Accountability Office's evaluation of the ``Share 
     the Road Safely'' program to determine if it has achieved 
     reductions in the number and severity of commercial motor 
     vehicle crashes, including reductions in the number of deaths 
     and the severity of injuries sustained in these crashes and 
     shall report its updated evaluation to Congress no later than 
     June 30, 2006.

     SEC. 4128. SAFETY DATA IMPROVEMENT PROGRAM.

       (a) In General.--The Secretary shall make grants to States 
     for projects and activities to improve the accuracy, 
     timeliness, and completeness of commercial motor vehicle 
     safety data reported to the Secretary.
       (b) Eligibility.--A State shall be eligible for a grant 
     under this section in a fiscal year if the Secretary 
     determines that the State has--
       (1) conducted a comprehensive audit of its commercial motor 
     vehicle safety data system within the preceding 2 years;
       (2) developed a plan that identifies and prioritizes its 
     commercial motor vehicle safety data needs and goals; and
       (3) identified performance-based measures to determine 
     progress toward those goals.
       (c) Federal Share.--The Federal share of a grant under this 
     section shall be 80 percent of the cost of the activities for 
     which the grant is made.
       (d) Biennial Report.--Not later 2 years after the date of 
     enactment of this Act, and biennially thereafter, the 
     Secretary shall transmit to Congress a report on the 
     activities and results of the program carried out under this 
     section, together with any recommendations the Secretary 
     determines appropriate.

     SEC. 4129. OPERATION OF COMMERCIAL MOTOR VEHICLES BY 
                   INDIVIDUALS WHO USE INSULIN TO TREAT DIABETES 
                   MELLITUS.

       (a) Revision of Final Rule.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary shall 
     begin revising the final rule published in the Federal 
     Register on September 3, 2003, relating to persons with 
     diabetes, to allow individuals who use insulin to treat their 
     diabetes to operate commercial motor vehicles in interstate 
     commerce. The revised final rule shall provide for the 
     individual assessment of applicants who use insulin to treat 
     their diabetes and who are, except for their use of insulin, 
     otherwise qualified under the Federal motor carrier safety 
     regulations. The revised final rule shall be consistent with 
     the criteria described in section 4018 of the Transportation 
     Equity Act for the 21st Century (49 U.S.C. 31305 note) and 
     shall conclude the rulemaking process in the Federal Motor 
     Carrier Safety Administration docket relating to 
     qualifications of drivers with diabetes.
       (b) No Period of Commercial Driving While Using Insulin 
     Required for Qualification.--After the earlier of the date of 
     issuance of the revised final rule under subsection (a) or 
     the 90th day following the date of enactment of this Act, the 
     Secretary may not require individuals with insulin-treated 
     diabetes mellitus who are applying for an exemption from the 
     physical qualification standards to have experience operating 
     commercial motor vehicles while using insulin in order to be 
     exempted from the physical qualification standards to operate 
     a commercial motor vehicle in interstate commerce.
       (c) Minimum Period of Insulin Use.--Subject to subsection 
     (b), the Secretary shall require individuals with insulin-
     treated diabetes mellitus to have a minimum period of insulin 
     use to demonstrate stable control of diabetes before 
     operating a commercial motor vehicle in interstate commerce. 
     Such demonstration shall be consistent with the findings 
     reported in July 2000, by the expert medical panel 
     established by the Secretary, in ``A Report to Congress on 
     the Feasibility of a Program to Qualify Individuals with 
     Insulin-Treated Diabetes Mellitus to Operate Commercial Motor 
     Vehicles in Interstate Commerce as Directed by the 
     Transportation Equity Act for the 21st Century''. For 
     individuals

[[Page H7387]]

     who have been newly diagnosed with type 1 diabetes, the 
     minimum period of insulin use may not exceed 2 months, unless 
     directed by the treating physician. For individuals who have 
     type 2 diabetes and are converting to insulin use, the 
     minimum period of insulin use may not exceed 1 month, unless 
     directed by the treating physician.
       (d) Limitations.--Insulin-treated individuals may not be 
     held by the Secretary to a higher standard of physical 
     qualification in order to operate a commercial motor vehicle 
     in interstate commerce than other individuals applying to 
     operate, or operating, a commercial motor vehicle in 
     interstate commerce; except to the extent that limited 
     operating, monitoring, and medical requirements are deemed 
     medically necessary under regulations issued by the 
     Secretary.

     SEC. 4130. OPERATORS OF VEHICLES TRANSPORTING AGRICULTURAL 
                   COMMODITIES AND FARM SUPPLIES.

       (a) Agricultural Exemption.--Section 229(a)(1) of the 
     Federal Motor Carrier Safety Improvement Act of 1999 (as 
     added by section 4115 of this Act), is amended to read as 
     follows:
       ``(1) Transportation of agricultural commodities and farm 
     supplies.--Regulations prescribed by the Secretary under 
     sections 31136 and 31502 regarding maximum driving and on-
     duty time for drivers used by motor carriers shall not apply 
     during planting and harvest periods, as determined by each 
     State, to drivers transporting agricultural commodities or 
     farm supplies for agricultural purposes in a State if such 
     transportation is limited to an area within a 100 air mile 
     radius from the source of the commodities or the distribution 
     point for the farm supplies.''.
       (b) Review by the Secretary.--Section 229(c) of such Act is 
     amended by striking ``paragraph (2)'' and inserting 
     ``paragraph (1), (2), or (4)''.
       (c) Definitions.--Section 229(e) of such Act is amended by 
     adding at the end the following:
       ``(7) Agricultural commodity.--The term `agricultural 
     commodity' means any agricultural commodity, non-processed 
     food, feed, fiber, or livestock (including livestock as 
     defined in section 602 of the Emergency Livestock Feed 
     Assistance Act of 1988 (7 U.S.C. 1471) and insects).
       ``(8) Farm supplies for agricultural purposes.--The term 
     `farm supplies for agricultural purposes' means products 
     directly related to the growing or harvesting of agricultural 
     commodities during the planting and harvesting seasons within 
     each State, as determined by the State, and livestock feed at 
     any time of the year.''.

     SEC. 4131. MAXIMUM HOURS OF SERVICE FOR OPERATORS OF GROUND 
                   WATER WELL DRILLING RIGS.

       Section 229(a)(2) of the Motor Carrier Safety Improvement 
     Act of 1999 (as added by section 4115 of this Act), is 
     amended by adding at the end the following: ``Except as 
     required in section 395.3 of title 49, Code of Federal 
     Regulations, as in effect on the date of enactment of this 
     sentence, no additional off-duty time shall be required in 
     order to operate such vehicle.''.

     SEC. 4132. HOURS OF SERVICE FOR OPERATORS OF UTILITY SERVICE 
                   VEHICLES.

       Section 229 of the Federal Motor Carrier Safety 
     Improvements Act of 1999 (as added by section 4115 of this 
     Act), is amended--
       (1) in subsection (a) by striking paragraph (4) and 
     inserting the following:
       ``(4) Operators of utility service vehicles.--
       ``(A) Inapplicability of federal regulations.--Such 
     regulations shall not apply to a driver of a utility service 
     vehicle.
       ``(B) Prohibition on state regulations.--A State, a 
     political subdivision of a State, an interstate agency, or 
     other entity consisting of 2 or more States, shall not enact 
     or enforce any law, rule, regulation, or standard that 
     imposes requirements on a driver of a utility service vehicle 
     that are similar to the requirements contained in such 
     regulations.''; and
       (2) in subsection (b) by striking ``Nothing'' and inserting 
     ``Except as provided in subsection (a)(4), nothing''.

     SEC. 4133. HOURS OF SERVICE RULES FOR OPERATORS PROVIDING 
                   TRANSPORTATION TO MOVIE PRODUCTION SITES .

       Notwithstanding sections 31136 and 31502 of title 49, 
     United States Code, and any other provision of law, the 
     maximum daily hours of service for an operator of a 
     commercial motor vehicle providing transportation of property 
     or passengers to or from a theatrical or television motion 
     picture production site located within a 100 air mile radius 
     of the work reporting location of such operator shall be 
     those in effect under the regulations in effect under such 
     sections on April 27, 2003.

     SEC. 4134. GRANT PROGRAM FOR COMMERCIAL MOTOR VEHICLE 
                   OPERATORS.

       (a) Establishment.--The Secretary shall establish a grant 
     program for persons to train operators of commercial motor 
     vehicles (as defined in section 31301 of title 49, United 
     States Code). The purpose of the program shall be to train 
     operators and future operators in the safe use of such 
     vehicles.
       (b) Federal Share.--The Federal share of the cost for which 
     a grant is made under this section shall be 80 percent.
       (c) Funding.--From amounts made available under section 
     31104(i) of title 49, United States Code, the Secretary shall 
     make available $1,000,000 for each of fiscal years 2005 
     through 2009 to carry out this section.

     SEC. 4135. CDL TASK FORCE.

       (a) In General.--The Secretary shall convene a task force 
     to study and address current impediments and foreseeable 
     challenges to the commercial driver's license program's 
     effectiveness and measures needed to realize the full safety 
     potential of the commercial driver's license program, 
     including such issues as--
       (1) State enforcement practices;
       (2) operational procedures to detect and deter fraud;
       (3) needed improvements for seamless information sharing 
     between States;
       (4) effective methods for accurately sharing electronic 
     data between States;
       (5) adequate proof of citizenship;
       (6) updated technology; and
       (7) timely notification from judicial bodies concerning 
     traffic and criminal convictions of commercial drivers 
     license holders.
       (b) Membership.--Members of the task force should include 
     State motor vehicle administrators, organizations 
     representing government agencies or officials, members of the 
     Judicial Conference, representatives of the trucking 
     industry, representatives of labor organizations, safety 
     advocates, and other significant stakeholders.
       (c) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary, on behalf of the task 
     force, shall complete a report of the task forces findings 
     and recommendations for legislative, regulatory, and 
     enforcement changes to improve the commercial drivers license 
     program and submit such the report to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.
       (d) Funding.--From the funds amounts made available by 
     section 4101(c)(1), $200,000 shall be available for each of 
     fiscal years 2006 and 2007 to carry out this section.

     SEC. 4136. INTERSTATE VAN OPERATIONS.

       The Federal motor carrier safety regulations that apply to 
     interstate operations of commercial motor vehicles designed 
     to transport between 9 and 15 passengers (including the 
     driver) shall apply to all interstate operations of such 
     carriers regardless of the distance traveled.

     SEC. 4137. DECALS.

       The Commercial Vehicle Safety Alliance may not restrict the 
     sale of any inspection decal to the Federal Motor Carrier 
     Safety Administration unless the Administration fails to meet 
     its responsibilities under its memorandum of understanding 
     with the Alliance (other than a failure due to the 
     Administration's compliance with Federal law).

     SEC. 4138. HIGH RISK CARRIER COMPLIANCE REVIEWS.

       From the funds authorized by section 31104(i) of title 49, 
     United States Code, the Secretary shall ensure that 
     compliance reviews are completed on motor carriers that have 
     demonstrated through performance data that they pose the 
     highest safety risk. At a minimum, a compliance review shall 
     be conducted whenever a motor carrier is rated as category A 
     or B for 2 consecutive months.

     SEC. 4139. FOREIGN COMMERCIAL MOTOR VEHICLES.

       (a) Operating Authority Enforcement Assistance for 
     States.--
       (1) Training and outreach.--Not later than 180 days after 
     the date of enactment of this Act, the Administrator of the 
     Federal Motor Carrier Safety Administration shall conduct 
     outreach and provide training as necessary to State personnel 
     engaged in the enforcement of Federal motor carrier safety 
     regulations to ensure their awareness of the process to be 
     used for verification of the operating authority of motor 
     carriers, including motor carriers of passengers, and to 
     ensure proper enforcement when motor carriers are found to be 
     in violation of operating authority requirements.
       (2) Assessment.--The Inspector General of the Department of 
     Transportation may periodically assess the implementation and 
     effectiveness of the training and outreach program.
       (b) Study of Foreign Commercial Motor Vehicles.--
       (1) Review.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall conduct a 
     review to determine the degree to which Canadian and 
     Mexican commercial motor vehicles, including motor 
     carriers of passengers, currently operating or expected to 
     operate in the United States comply with the Federal motor 
     vehicle safety standards.
       (2) Reports.--Not later than 1 year after the date of 
     enactment, the Adminstrator shall submit a report to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives containing the findings and 
     conclusions of the review. Not later than 4 months after the 
     date on which the report is submitted to the Committees, the 
     Inspector General of the Department shall provide comments 
     and observations to the Committees on the scope and 
     methodology of the review.

     SEC. 4140. SCHOOL BUS DRIVER QUALIFICATIONS AND ENDORSEMENT 
                   KNOWLEDGE TEST.

       (a) Recognition of Test.--The Secretary shall recognize any 
     driver who passes a test approved by the Federal Motor 
     Carrier Safety Administration as meeting the knowledge test 
     requirement for a school bus endorsement under section 
     383.123 of title 49, Code of Federal Regulations.
       (b) Driver Qualifications.-- Section 383.123 of such title 
     (as in effect on the date of enactment of this Act) shall not 
     be in effect during the period beginning on the date of 
     enactment of this Act and ending on September 30, 2006.

     SEC. 4141. DRIVEAWAY SADDLEMOUNT VEHICLES.

       (a) Definition.--Section 31111(a) of tile 49, United States 
     Code, is amended by adding at the end of the following:
       ``(4) Drive-away saddlemount with fullmount vehicle 
     transporter combination.--The term `drive-away saddlemount 
     with fullmount vehicle transporter combination' means a 
     vehicle combination designed and specifically used to tow up 
     to 3 trucks or truck tractors, each connected by a saddle to 
     the

[[Page H7388]]

     frame or fifth-wheel of the forward vehicle of the truck or 
     truck tractor in front of it.''.
       (b) General Limitations.--Section 31111(b)(1) of such title 
     is amended
       (1) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (2) by inserting after subparagraph (C) the following:
       ``(D) imposes a vehicle length limitation of not less than 
     or more than 97 feet on a driveaway saddlemount with 
     fullmount vehicle transporter combinations;''.

     SEC. 4142. REGISTRATION OF MOTOR CARRIERS AND FREIGHT 
                   FORWARDERS.

       (a) Definitions Relating to Motor Carriers.--Paragraphs 
     (6), (7), (12), and (13) of section 13102 of title 49, United 
     States Code, are each amended by striking ``motor vehicle'' 
     and inserting ``commercial motor vehicle (as defined in 
     section 31132)''.
       (b) Freight Forwarders.--Section 13903(a) of such title is 
     amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) Household goods.--The Secretary'';
       (2) by inserting ``of household goods'' after ``freight 
     forwarder''; and
       (3) by adding at the end the following:
       ``(2) Others.--The Secretary may register a person to 
     provide service subject to jurisdiction under subchapter III 
     of chapter 135 as a freight forwarder (other than a freight 
     forwarder of household goods) if the Secretary finds that 
     such registration is needed for the protection of shippers 
     and that the person is fit, willing, and able to provide the 
     service and to comply with this part and applicable 
     regulations of the Secretary and Board.''.
       (c) Brokers.--Section 13904(a) of such title is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) Household Goods.--The Secretary'';
       (2) by inserting ``of household goods'' after ``broker''; 
     and
       (3) by adding at the end the following:
       ``(2) Others.--The Secretary may register a person to 
     provide service subject to jurisdiction under subchapter III 
     of chapter 135 as a broker (other than a broker of household 
     goods) if the Secretary finds that such registration is 
     needed for the protection of shippers and that the person is 
     fit, willing, and able to provide the service and to comply 
     with this part and applicable regulations of the Secretary 
     and Board.''.

     SEC. 4143. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.

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

     ``Sec. 39. Commercial motor vehicles required to stop for 
       inspections

       ``(a) A driver of a commercial motor vehicle (as defined in 
     section 31132 of title 49) shall stop and submit to 
     inspection of the vehicle, driver, cargo, and required 
     records when directed to do so by an authorized employee of 
     the Federal Motor Carrier Safety Administration of the 
     Department of Transportation, at or in the vicinity of an 
     inspection site. The driver shall not leave the inspection 
     site until authorized to do so by an authorized employee.
       ``(b) A driver of a commercial motor vehicle, as defined in 
     subsection (a), who knowingly fails to stop for inspection 
     when directed to do so by an authorized employee of the 
     Administration at or in the vicinity of an inspection site, 
     or leaves the inspection site without authorization, shall be 
     fined under this title or imprisoned not more than 1 year, or 
     both.''.
       (b) Authority of FMCSA.--Chapter 203 of such title is 
     amended by adding at the end the following:

     ``Sec. 3064. Powers of Federal Motor Carrier Safety 
       Administration

       ``Authorized employees of the Federal Motor Carrier Safety 
     Administration may direct a driver of a commercial motor 
     vehicle (as defined in section 31132 of title 49) to stop for 
     inspection of the vehicle, driver, cargo, and required 
     records at or in the vicinity of an inspection site.''.
       (c) Clerical Amendments.--
       (1) The analysis for chapter 2 of such title is amended by 
     inserting after the item relating to section 38 the 
     following:

       ``39. Commercial motor vehicles required to stop for 
           inspections.''.
       (2) The analysis for chapter 203 of such title is amended 
     by inserting after the item relating to section 3063 the 
     following:

       ``3064. Powers of Federal Motor Carrier Safety 
           Administration.''.

     SEC. 4144. MOTOR CARRIER SAFETY ADVISORY COMMITTEE.

       (a) Establishment and Duties.--The Secretary shall 
     establish in the Federal Motor Carrier Safety Administration 
     a motor carrier safety advisory committee. The committee 
     shall--
       (1) provide advice and recommendations to the Administrator 
     of the Federal Motor Carrier Safety Administration about 
     needs, objectives, plans, approaches, content, and 
     accomplishments of the motor carrier safety programs carried 
     out by the Administration; and
       (2) provide advice and recommendations to the Administrator 
     on motor carrier safety regulations.
       (b) Members, Chairman, Pay, and Expenses.--
       (1) In general.--The committee shall be composed of not 
     more than 20 members appointed by the Administrator from 
     among individuals who are not employees of the Administration 
     and who are specially qualified to serve on the committee 
     because of their education, training, or experience. The 
     members shall include representatives of the motor carrier 
     industry, safety advocates, and safety enforcement officials. 
     Representatives of a single enumerated interest group may not 
     constitute a majority of the members of the advisory 
     committee.
       (2) Chairman.--The Administrator shall designate the 
     chairman of the committee.
       (3) Pay.--A member of the committee shall serve without 
     pay; except that the Administrator may allow a member, when 
     attending meetings of the committee or a subcommittee of the 
     committee, expenses authorized under section 5703 of title 5, 
     relating to per diem, travel, and transportation expenses.
       (c) Support Staff, Information, and Services.--The 
     Administrator shall provide support staff for the committee. 
     On request of the committee, the Administrator shall provide 
     information, administrative services, and supplies that the 
     Administrator considers necessary for the committee to carry 
     out its duties and powers.
       (d) Termination Date.--Notwithstanding the Federal Advisory 
     Committee Act (5 U.S.C. App.), the advisory committee shall 
     terminate on September 30, 2010.

     SEC. 4145. TECHNICAL CORRECTIONS.

       (a) Intermodal Transportation Advisory Board.--Section 
     5502(b) of title 49, United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (4);
       (2) by striking the period at the end of paragraph (5) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(6) the Federal Motor Carrier Safety Administration.''.
       (b) Reference to Agency.--Section 31502(e) of such title is 
     amended--
       (1) in paragraph (2) by striking ``Regional Director of the 
     Federal Highway Administration'' and inserting ``Field 
     Administrator of the Federal Motor Carrier Safety 
     Administration''; and
       (2) in paragraph (3) by striking ``Regional Director'' and 
     inserting ``Field Administrator''.

     SEC. 4146. EXEMPTION DURING HARVEST PERIODS.

       Regulations issued by the Secretary under sections 31136 
     and 31502 of title 49, United States Code, regarding maximum 
     driving and on-duty time for a driver used by a motor 
     carrier, shall not apply, beginning on the date of enactment 
     of this Act and ending at the end of fiscal year 2009, for 
     the transportation of grapes west of Interstate 81 in the 
     State of New York if such transportation--
       (1) is during a harvesting period, as determined by the 
     State; and
       (2) is limited to a 150-air mile radius from where the 
     grapes are picked or distributed.

     SEC. 4147. EMERGENCY CONDITION REQUIRING IMMEDIATE RESPONSE.

       Section 229 of the Motor Carrier Safety Improvement Act of 
     1999 (as added and amended by section 4115 of this Act) is 
     amended by adding at the end the following:
       ``(f) Emergency Condition Requiring Immediate Response.--
       ``(1) Propane or pipeline emergency.--A regulation 
     prescribed under section 31136 or 31502 of title 49, United 
     States Code, shall not apply to a driver of a commercial 
     motor vehicle which is used primarily in the transportation 
     of propane winter heating fuel or a driver of a motor vehicle 
     used to respond to a pipeline emergency if such regulations 
     would prevent the driver from responding to an emergency 
     condition requiring immediate response.
       ``(2) Definition.--An emergency condition requiring 
     immediate response is any condition that, if left unattended, 
     is reasonably likely to result in immediate serious bodily 
     harm, death, or substantial damage to property. In the case 
     of propane such conditions shall include (but are not limited 
     to) the detection of gas odor, the activation of carbon 
     monoxide alarms, the detection of carbon monoxide poisoning, 
     and any real or suspected damage to a propane gas system 
     following a severe storm or flooding. An `emergency condition 
     requiring an immediate response' does not include requests to 
     re-fill empty gas tanks. In the case of pipelines such 
     conditions include (but are not limited to) indication of an 
     abnormal pressure event, leak, release or rupture.''.

     SEC. 4148. SUBSTANCE ABUSE PROFESSIONALS.

       The Secretary shall conduct a rulemaking to permit a State 
     licensed or certified marriage and family therapist, to act 
     as a substance abuse professional under subpart O of part 40 
     of title 49, Code of Federal Regulations.

     SEC. 4149. OFFICE OF INTERMODALISM.

       Section 5503 of title 49, United States Code, is amended--
       (1) in subsection (e) by inserting ``Amounts reserved under 
     section 5504(d) not awarded to States as grants may be used 
     by the Director to provide technical assistance under this 
     subsection.'' after ``organizations.'';
       (2) by redesignating subsection (f) as subsection (h); and
       (3) by inserting after subsection (e) the following:
       ``(f) National Intermodal System Improvement Plan.--
       ``(1) In general.--The Director, in consultation with the 
     advisory board established under section 5502 and other 
     public and private transportation interests, shall develop a 
     plan to improve the national intermodal transportation 
     system. The plan shall include--
       ``(A) an assessment and forecast of the national intermodal 
     transportation system's impact on mobility, safety, energy 
     consumption, the environment, technology, international 
     trade, economic activity, and quality of life in the United 
     States;
       ``(B) an assessment of the operational and economic 
     attributes of each passenger and freight mode of 
     transportation and the optimal role of each mode in the 
     national intermodal transportation system;
       ``(C) a description of recommended intermodal and multi-
     modal research and development projects;
       ``(D) a description of emerging trends that have an impact 
     on the national intermodal transportation system;

[[Page H7389]]

       ``(E) recommendations for improving intermodal policy, 
     transportation decision-making, and financing to maximize 
     mobility and the return on investment of Federal spending on 
     transportation;
       ``(F) an estimate of the impact of current Federal and 
     State transportation policy on the national intermodal 
     transportation system; and
       ``(G) specific near and long-term goals for the national 
     intermodal transportation system.
       ``(2) Progress reports.--The Director shall submit an 
     initial report on the plan to improve the national intermodal 
     transportation system 2 years after the date of enactment of 
     the Surface Transportation Safety Improvement Act of 2005, 
     and a follow-up report 2 years after that, to the Committee 
     on Commerce, Science, and Transportation of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives. The progress report shall--
       ``(A) describe progress made toward achieving the plan's 
     goals;
       ``(B) describe challenges and obstacles to achieving the 
     plan's goals;
       ``(C) update the plan to reflect changed circumstances or 
     new developments; and
       ``(D) make policy and legislative recommendations the 
     Director believes are necessary and appropriate to achieve 
     the goals of the plan.
       ``(3) Plan development funding.--Such sums as may be 
     necessary from the administrative expenses of the Research 
     and Innovative Technology Administration shall be reserved by 
     the Secretary of Transportation each year for the purpose of 
     completing and updating the plan to improve the national 
     intermodal transportation plan.
       ``(g) Impact Measurement Methodology; Impact Review.--The 
     Director and the Director of the Bureau of Transportation 
     Statistics shall jointly--
       ``(1) develop, in consultation with the modal 
     administrations, and State and local planning organizations, 
     common measures to compare transportation investment 
     decisions across the various modes of transportation; and
       ``(2) formulate a methodology for measuring the impact of 
     intermodal transportation on--
       ``(A) the environment;
       ``(B) public health and welfare;
       ``(C) energy consumption;
       ``(D) the operation and efficiency of the transportation 
     system;
       ``(E) congestion, including congestion at the Nation's 
     ports; and
       ``(F) the economy and employment.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Transportation such 
     sums as may be necessary for fiscal years 2006 through 2009 
     to carry out this chapter.''.
               Subtitle B--Household Goods Transportation

     SEC. 4201. SHORT TITLE.

       This subtitle may be cited as the ``Househood Goods Mover 
     Oversight Enforcement and Reform Act of 2005''

     SEC. 4202. DEFINITIONS; APPLICATION OF PROVISIONS.

       (a) Terms Used in This Chapter.--In this subtitle, the 
     terms ``carrier'', ``household goods'', ``motor carrier'', 
     ``Secretary'', and ``transportation'' have the meaning given 
     to such terms in section 13102 of title 49, United States 
     Code.
       (b) Household Goods Motor Carrier and Individual Shipper in 
     Part B of Subtitle IV of Title 49.--Section 13102 of title 
     49, United States Code (as amended by section 4141 of this 
     Act) is amended by redesignating paragraphs (12) through (24) 
     as paragraphs (14) through (26) and by inserting after 
     paragraph (11) the following:
       ``(12) Household goods motor carrier.--
       ``(A) In general.--The term `household goods motor carrier' 
     means a motor carrier that, in the ordinary course of its 
     business of providing transportation of household goods, 
     offers some or all of the following additional services:
       ``(i) Binding and nonbinding estimates.
       ``(ii) Inventorying.
       ``(iii) Protective packing and unpacking of individual 
     items at personal residences.
       ``(iv) Loading and unloading at personal residences.
       ``(B) Inclusion.--The term includes any person that is 
     considered to be a household goods motor carrier under 
     regulations, determinations, and decisions of the Federal 
     Motor Carrier Safety Administration that are in effect on the 
     date of enactment of the Household Goods Mover Oversight 
     Enforcement and Reform Act of 2005.
       ``(C) Limited service exclusion.--The term does not include 
     a motor carrier when the motor carrier provides 
     transportation of household goods in containers or trailers 
     that are entirely loaded and unloaded by an individual (other 
     than an employee or agent of the motor carrier).
       ``(13) Individual shipper.--The term `individual shipper' 
     means any person who--
       ``(A) is the shipper, consignor, or consignee of a 
     household goods shipment;
       ``(B) is identified as the shipper, consignor, or consignee 
     on the face of the bill of lading;
       ``(C) owns the goods being transported; and
       ``(D) pays his or her own tariff transportation charges.''.
       (c) Application of Certain Provisions of Law.--The 
     provisions of title 49, United States Code, and this subtitle 
     (including any amendments made by this subtitle), that relate 
     to the transportation of household goods apply only to a 
     household goods motor carrier (as defined in section 13102 of 
     title 49, United States Code).

     SEC. 4203. PAYMENT OF RATES.

       Section 13707(b) of title 49, United States Code, is 
     amended by adding at the end the following:
       ``(3) Shipments of household goods.--
       ``(A) In general.--A carrier providing transportation of a 
     shipment of household goods shall give up possession of the 
     household goods being transported at the destination upon 
     payment of--
       ``(i) 100 percent of the charges contained in a binding 
     estimate provided by the carrier;
       ``(ii) not more than 110 percent of the charges contained 
     in a nonbinding estimate provided by the carrier; or
       ``(iii) in the case of a partial delivery of the shipment, 
     the prorated percentage of the charges calculated in 
     accordance with subparagraph (B).
       ``(B) Calculation of prorated charges.--For purposes of 
     subparagraph (A)(iii), the prorated percentage of the charges 
     shall be the percentage of the total charges due to the 
     carrier as described in clause (i) or (ii) of subparagraph 
     (A) that is equal to the percentage of the weight of that 
     portion of the shipment delivered to the total weight of the 
     shipment.
       ``(C) Post-contract services.--Subparagraph (A) does not 
     apply to additional services requested by a shipper after the 
     contract of service is executed that were not included in the 
     estimate.
       ``(D) Impracticable operations.--Subparagraph (A) does not 
     apply to impracticable operations, as defined by the 
     applicable carrier tariff, except that the charges collected 
     at delivery for such operations shall not exceed 15 percent 
     of all other charges due at delivery. Any remaining charges 
     due shall be paid within 30 days after the carrier presents 
     its freight bill.''.

     SEC. 4204. ADDITIONAL REGISTRATION REQUIREMENTS FOR MOTOR 
                   CARRIERS OF HOUSEHOLD GOODS.

       Section 13902(a) of title 49, United States Code, is 
     amended--
       (1) by striking paragraphs (2) and (3);
       (2) by redesignating paragraph (4) as paragraph (5);
       (3) by inserting after paragraph (1) the following:
       ``(2) Additional registration requirements for household 
     goods motor carriers.--In addition to meeting the 
     requirements of paragraph (1), the Secretary may register a 
     person to provide transportation of household goods as a 
     household goods motor carrier only after that person--
       ``(A) provides evidence of participation in an arbitration 
     program and provides a copy of the notice of the arbitration 
     program as required by section 14708(b)(2);
       ``(B) identifies its tariff and provides a copy of the 
     notice of the availability of that tariff for inspection as 
     required by section 13702(c);
       ``(C) provides evidence that it has access to, has read, is 
     familiar with, and will observe all applicable Federal laws 
     relating to consumer protection, estimating, consumers' 
     rights and responsibilities, and options for limitations of 
     liability for loss and damage; and
       ``(D) discloses any relationship involving common stock, 
     common ownership, common management, or common familial 
     relationships between that person and any other motor 
     carrier, freight forwarder, or broker of household goods 
     within 3 years of the proposed date of registration.
       ``(3) Consideration of evidence; findings.--The Secretary 
     shall consider, and, to the extent applicable, make findings 
     on any evidence demonstrating that the registrant is unable 
     to comply with any applicable requirement of paragraph (1) 
     or, in the case of a registrant to which paragraph (2) 
     applies, paragraph (1) or (2).
       ``(4) Withholding.--If the Secretary determines that a 
     registrant under this section does not meet, or is not able 
     to meet, any requirement of paragraph (1) or, in the case of 
     a registrant to which paragraph (2) applies, paragraph (1) or 
     (2), the Secretary shall withhold registration.''; and
       (4) by adding at the end of paragraph (5) (as redesignated 
     by paragraph (2) of this section) ``In the case of a 
     registration for the transportation of household goods as a 
     household goods motor carrier, the Secretary may also hear a 
     complaint on the ground that the registrant fails or will 
     fail to comply with the requirements of paragraph (2) of this 
     subsection.''.

     SEC. 4205. HOUSEHOLD GOODS CARRIER OPERATIONS.

       Section 14104(b) of title 49, United States Code, is 
     amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Required to be in writing.--
       ``(A) In general.--Except as otherwise provided in this 
     subsection, every motor carrier providing transportation of 
     household goods described in section 13102(10)(A) as a 
     household goods motor carrier and subject to jurisdiction 
     under subchapter I of chapter 135 shall conduct a physical 
     survey of the household goods to be transported on behalf of 
     a prospective individual shipper and shall provide the 
     shipper with a written estimate of charges for the 
     transportation and all related services.
       ``(B) Waiver.--A shipper may elect to waive a physical 
     survey under this paragraph by written agreement signed by 
     the shipper before the shipment is loaded. A copy of the 
     waiver agreement must be retained as an addendum to the bill 
     of lading and shall be subject to the same record inspection 
     and preservation requirements of the Secretary as are 
     applicable to bills of lading.
       ``(C) Estimate.--
       ``(i) In general.--Notwithstanding a waiver under 
     subparagraph (B), a carrier's statement of charges for 
     transportation must be submitted to the shipper in writing 
     and must indicate whether it is binding or nonbinding. The 
     written estimate shall be based on a physical survey of the 
     household goods if the household goods are located within a 
     50-mile radius of the location of the carrier's household 
     goods agent preparing the estimate.
       ``(ii) Binding.--A binding estimate under this paragraph 
     must indicate that the carrier and

[[Page H7390]]

     shipper are bound by such charges. The carrier may impose a 
     charge for providing a written binding estimate.
       ``(iii) Nonbinding.--A nonbinding estimate under this 
     paragraph must indicate that the actual charges will be based 
     upon the actual weight of the individual shipper's shipment 
     and the carrier's lawful tariff charges. The carrier may not 
     impose a charge for providing a nonbinding estimate.
       ``(2) Other information.--At the time that a motor carrier 
     provides the written estimate required by paragraph (1), the 
     motor carrier shall provide the shipper a copy of the 
     Department of Transportation publication FMCSA-ESA-03-005 (or 
     its successor publication) entitled `Ready to Move?'. Before 
     the execution of a contract for service, the motor carrier 
     shall provide the shipper copy of the Department of 
     Transportation publication OCE 100, entitled `Your Rights and 
     Responsibilities When You Move' required by section 375.213 
     of title 49, Code of Federal Regulations (or any successor 
     regulation). ''.

     SEC. 4206. ENFORCEMENT OF REGULATIONS RELATED TO 
                   TRANSPORTATION OF HOUSEHOLD GOODS.

       (a) Nonpreemption of Intrastate Transportation of Household 
     Goods.--Section 14501(c)(2)(B) of title 49, United States 
     Code, is amended by inserting ``intrastate'' before 
     ``transportation''.
       (b) Enforcement of Federal Law With Respect to Interstate 
     Household Goods Carriers.--
       (1) In general.--Chapter 147 of such title is amended by 
     adding at the end the following:

     ``Sec. 14710. Enforcement of Federal laws and regulations 
       with respect to transportation of household goods

       ``(a) Enforcement by States.--Notwithstanding any other 
     provision of this title, a State authority may enforce the 
     consumer protection provisions of this title that apply to 
     individual shippers, as determined by the Secretary, and are 
     related to the delivery and transportation of household goods 
     in interstate commerce. Any fine or penalty imposed on a 
     carrier in a proceeding under this subsection shall be paid, 
     notwithstanding any other provision of law, to and retained 
     by the State.
       ``(b) Notice.--The State shall serve written notice to the 
     Secretary or the Board, as the case may be, of any civil 
     action under subsection (a) prior to initiating such civil 
     action. The notice shall include a copy of the complaint to 
     be filed to initiate such civil action, except that if it is 
     not feasible for the State to provide such prior notice, the 
     State shall provide the notice immediately upon instituting 
     such civil action.
       ``(c) Enforcement Assistance Outreach Plan.--The Federal 
     Motor Carrier Safety Administration shall implement an 
     outreach plan to enhance the coordination and effective 
     enforcement of Federal laws and regulations with respect to 
     transportation of household goods between and among Federal 
     and State law enforcement and consumer protection 
     authorities. The outreach shall include, as appropriate, 
     local law enforcement and consumer protection authorities.
       ``(d) State Authority Defined.--In this section, the term 
     `State authority' means an agency of a State that has 
     authority under the laws of the State to regulate the 
     intrastate movement of household goods.

     ``Sec. 14711. Enforcement 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 to enforce the consumer 
     protection provisions of this title that apply to individual 
     shippers, as determined by the Secretary, and are related to 
     the delivery and transportation of household goods by a 
     household goods motor carrier subject to jurisdiction under 
     subchapter I of chapter 135 or regulations or orders of the 
     Secretary or the Board issued under such provisions or to 
     impose the civil penalties authorized by this part or such 
     regulations or orders, whenever the attorney general of the 
     State has reason to believe that the interests of the 
     residents of the State have been or are being threatened or 
     adversely affected by a carrier or broker providing 
     transportation subject to jurisdiction under subchapter I or 
     III of chapter 135 or a foreign motor carrier providing 
     transportation that is registered under section 13902 and is 
     engaged in household goods transportation that violates this 
     part or a regulation or order of the Secretary or Board, as 
     applicable, issued under this part.
       ``(b) Notice and Consent.--
       ``(1) In general.--The State shall serve written notice to 
     the Secretary or the Board, as the case may be, of any civil 
     action under subsection (a) prior to initiating such civil 
     action. The notice shall include a copy of the complaint to 
     be filed to initiate such civil action.
       ``(2) Conditions.--The Secretary or the Board--
       ``(A) shall review the initiation of a civil action under 
     this section by a State if--
       ``(i) the carrier or broker that is the subject of the 
     action is not registered with the Department of 
     Transportation;
       ``(ii) the license of the carrier or broker for failure to 
     file proof of required bodily injury or cargo liability 
     insurance is pending, or the license has been revoked for any 
     other reason by the Department;
       ``(iii) the carrier is not rated or has received a 
     conditional or unsatisfactory safety rating by the 
     Department; or
       ``(iv) the carrier or broker has been licensed with the 
     Department for less than 5 years; and
       ``(B) may review if the carrier or broker fails to meet 
     criteria developed by the Secretary that are consistent with 
     this section.
       ``(3) Congressional notification.--The Secretary shall 
     notify the Committee on Commerce, Science, and 
     Transportation, of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representativesof any criteria developed by the Secretary 
     under paragraph (2)(B).
       ``(4) 60-day deadline.--The Secretary or the Board shall be 
     considered to have consented to any civil action of a State 
     under this section if the Secretary or the Board has taken no 
     action with respect to the notice within 60 calendar days 
     after the date on which the Secretary or the Board received 
     notice under paragraph (1).
       ``(c) Authority to Intervene.--Upon receiving the notice 
     required by subsection (b), the Secretary or board may 
     intervene in a civil action of a State under this section and 
     upon intervening--
       ``(1) be heard on all matters arising in such civil action; 
     and
       ``(2) file petitions for appeal of a decision in such civil 
     actions.
       ``(d) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this section shall--
       ``(1) convey a right to initiate or maintain a class action 
     lawsuit in the enforcement of a Federal law or regulation; or
       ``(2) prevent the attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of such State to conduct investigations or to 
     administer oaths or affirmations or to compel the attendance 
     of witnesses or the production of documentary and other 
     evidence.
       ``(e) Venue; Service of Process.--In a civil action brought 
     under subsection (a)--
       ``(1) the venue shall be a Federal judicial district in 
     which--
       ``(A) the carrier, foreign motor carrier, or broker 
     operates;
       ``(B) the carrier, foreign motor carrier, or broker was 
     authorized to provide transportation at the time the 
     complaint arose; or
       ``(C) where the defendant in the civil action is found;
       ``(2) process may be served without regard to the 
     territorial limits of the district or of the State in which 
     the civil action is instituted; and
       ``(3) a person who participated with a carrier or broker in 
     an alleged violation that is being litigated in the civil 
     action may be joined in the civil action without regard to 
     the residence of the person.
       ``(f) Enforcement of State Law.--Nothing contained in this 
     section shall prohibit an authorized State official from 
     proceeding in State court to enforce a criminal statute of 
     such State.''.
       (c) Clerical Amendment.--The analysis for such chapter 147 
     is amended by inserting after the item relating to section 
     14709 the following:

``14710. Enforcement of Federal laws and regulations with respect to 
              transportation of household goods.
``14711. Enforcement by State attorneys general.''.

     SEC. 4207. LIABILITY OF CARRIERS UNDER RECEIPTS AND BILLS OF 
                   LADING.

       Section 14706(f) of title 49, United States Code, is 
     amended--
       (1) by striking ``A carrier'' and inserting the following:
       ``(1) In general.--A carrier''; and
       (2) by adding at the end the following:
       ``(2) Full value protection obligation.--Unless the carrier 
     receives a waiver in writing under paragraph (3), a carrier's 
     maximum liability for household goods that are lost, damaged, 
     destroyed, or otherwise not delivered to the final 
     destination is an amount equal to the replacement value of 
     such goods, subject to a maximum amount equal to the declared 
     value of the shipment and to rules issued by the Surface 
     Transportation Board and applicable tariffs.
       ``(3) Application of rates.--The released rates established 
     by the Board under paragraph (1) (commonly known as `released 
     rates') shall not apply to the transportation of household 
     goods by a carrier unless the liability of the carrier for 
     the full value of such household goods under paragraph (2) is 
     waived, in writing, by the shipper.''.

     SEC. 4208. ARBITRATION REQUIREMENTS.

       (a) Offering Shippers Arbitration.--Section 14708(a) of 
     title 49, United States Code, is amended by inserting before 
     the period at the end the following: ``and to determine 
     whether carrier charges, in addition to those collected at 
     delivery, must be paid by shippers for transportation and 
     services related to transportation of household goods''.
       (b) Threshold for Binding Arbitration.--Section 14708(b)(6) 
     of such title is amended by striking ``$5,000'' each place it 
     appears and inserting ``$10,000''.
       (c) Deadline for Decision.--Section 14708(b)(8) of such 
     title is amended in last sentence--
       (1) by striking ``and''; and
       (2) by inserting after ``for damages'' the following: ``, 
     and an order requiring the payment of additional carrier 
     charges''.
       (d) Attorney's Fees to Shippers.--Section 14708(d)(3) of 
     such title is amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) by striking ``(3)(A) a decision resolving the dispute 
     was not'' and inserting the following:
       ``(3)(A) the shipper was not advised by the carrier during 
     the claim settlement process that a dispute settlement 
     program was available to resolve the dispute;
       ``(B) a decision resolving the dispute was not''.

     SEC. 4209. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS 
                   BROKERS AND UNAUTHORIZED TRANSPORTATION.

       Section 14901(d) of title 49, United States Code, is 
     amended--
       (1) by striking ``If a carrier'' and inserting the 
     following:
       ``(1) In general.--If a carrier''; and

[[Page H7391]]

       (2) by adding at the end the following:
       ``(2) Estimate of broker without carrier agreement.--If a 
     broker for transportation of household goods subject to 
     jurisdiction under subchapter I of chapter 135 makes an 
     estimate of the cost of transporting any such goods before 
     entering into an agreement with a carrier to provide 
     transportation of household goods subject to such 
     jurisdiction, the broker is liable to the United States for a 
     civil penalty of not less than $10,000 for each violation.
       ``(3) Unauthorized transportation.--If a person provides 
     transportation of household goods subject to jurisdiction 
     under subchapter I of chapter 135 or provides broker services 
     for such transportation without being registered under 
     chapter 139 to provide such transportation or services as a 
     motor carrier or broker, as the case may be, such person is 
     liable to the United States for a civil penalty of not less 
     than $25,000 for each violation.''.

     SEC. 4210. PENALTIES FOR HOLDING HOUSEHOLD GOODS HOSTAGE.

       (a) In General.--Chapter 149 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 14915. Penalties for failure to give up possession of 
       household goods

       ``(a) Civil Penalty.--
       ``(1) In general.--Whoever is found holding a household 
     goods shipment hostage is liable to the United States for a 
     civil penalty of not less than $10,000 for each violation.
       ``(2) Each day, a separate violation.--Each day a carrier 
     is found to have failed to give up possession of household 
     goods may constitute a separate violation.
       ``(3) Suspension.--If the person found holding a shipment 
     hostage is a carrier or broker, the Secretary may suspend for 
     a period of not less than 12 months nor more than 36 months 
     the registration of such carrier or broker under chapter 139. 
     The force and effect of such suspension of a carrier or 
     broker shall extend to and include any carrier or broker 
     having the same ownership or operational control as the 
     suspended carrier or broker.
       ``(b) Criminal Penalty.--Whoever has been convicted of 
     having failed to give up possession of household goods shall 
     be fined under title 18 or imprisoned for not more than 2 
     years, or both.
       ``(c) Failure to Give Up Possession of Household Goods 
     Defined.--For purposes of this section, the term `failed to 
     give up possession of household goods' means the knowing and 
     willful failure, in violation of a contract, to deliver to, 
     or unload at, the destination of a shipment of household 
     goods that is subject to jurisdiction under subchapter I or 
     III of chapter 135 of this title, for which charges have been 
     estimated by the motor carrier providing transportation of 
     such goods, and for which the shipper has tendered a payment 
     described in clause (i), (ii), or (iii) of section 
     13707(b)(3)(A).''.
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by adding at the end the following:

``14915. Penalties for failure to give up possession of household 
              goods.''.

     SEC. 4211. CONSUMER HANDBOOK ON DOT WEB SITE.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall take such action as may be necessary 
     to ensure that publication ESA 03005 of the Federal Motor 
     Carrier Safety Administration entitled ``Your Rights and 
     Responsibilities When You Move'', is prominently displayed, 
     and available in language that is readily understandable by 
     the general public, on the Web site of the Department of 
     Transportation.

     SEC. 4212. RELEASE OF HOUSEHOLD GOODS BROKER INFORMATION.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall modify the regulations contained in 
     part 375 of title 49, Code of Federal Regulations, to require 
     a broker that is subject to such regulations to provide 
     shippers with the following information whenever they have 
     contact with a shipper or potential shipper:
       (1) The Department of Transportation number of the broker.
       (2) The ESA 03005 publication referred to in section 4211 
     of this Act.
       (3) A list of all motor carriers providing transportation 
     of household goods used by the broker and a statement that 
     the broker is not a motor carrier providing transportation of 
     household goods.

     SEC. 4213. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND 
                   PROCEDURES TO ENHANCE FEDERAL-STATE RELATIONS.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall establish a 
     working group of State attorneys general, State consumer 
     protection administrators, and Federal and local law 
     enforcement officials for the purpose of developing practices 
     and procedures to enhance the Federal-State partnership in 
     enforcement efforts, exchange of information, and 
     coordination of enforcement efforts with respect to 
     interstate transportation of household goods and of making 
     legislative and regulatory recommendations to the Secretary 
     concerning such enforcement efforts.
       (b) Consultation.--In carrying out subsection (a), the 
     working group shall consult with industries involved in the 
     transportation of household goods, the public, and other 
     interested parties.
       (c) Federal Advisory Committee Act Exemption.--The Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     working group established under subsection (a).
       (d) Termination Date.--The working group shall remain in 
     effect until September 30, 2009.

     SEC. 4214. CONSUMER COMPLAINT INFORMATION.

       (a) Establishment of System.--Not later than 1 year after 
     the date of enactment of this Act, the Secretary shall--
       (1) establish (A) a system for filing and logging consumer 
     complaints relating to household goods motor carriers for the 
     purpose of compiling or linking complaint information 
     gathered by the Department of Transportation and the States 
     with regard to such carriers, (B) a database of the 
     complaints, and (C) a procedure for the public to have 
     access, subject to section 552(a) of title 5, United States 
     Code, to aggregated information and for carriers to challenge 
     duplicate or fraudulent information in the database;
       (2) issue regulations requiring each motor carrier of 
     household goods to submit on a quarterly basis a report 
     summarizing--
       (A) the number of shipments that originate and are 
     delivered for individual shippers during the reporting period 
     by the carrier;
       (B) the number and general category of complaints lodged by 
     consumers with the carrier;
       (C) the number of claims filed with the carrier for loss 
     and damage in excess of $500;
       (D) the number of such claims resolved during the reporting 
     period;
       (E) the number of such claims declined in the reporting 
     period; and
       (F) the number of such claims that are pending at the close 
     of the reporting period; and
       (3) develop a procedure to forward a complaint, including 
     the motor carrier bill of lading number, if known, related to 
     the complaint to a motor carrier named in such complaint and 
     to an appropriate State authority (as defined in section 
     14710(d) of title 49, United States Code) in the State in 
     which the complainant resides.
       (b) Use of Information.--The Secretary shall consider 
     information in the data base established under subsection (a) 
     in its household goods compliance and enforcement program.

     SEC. 4215. REVIEW OF LIABILITY OF CARRIERS.

       (a) Review.--Not later than 1 year after the date of 
     enactment of this Act, the Surface Transportation Board shall 
     complete a review of the current Federal regulations 
     regarding the level of liability protection provided by motor 
     carriers that provide transportation of household goods and 
     revise such regulations, if necessary, to provide enhanced 
     protection in the case of loss or damage.
       (b) Determinations.--The review required by subsection (a) 
     shall include a determination of--
       (1) whether the current regulations provide adequate 
     protection;
       (2) the benefits of purchase by a shipper of insurance to 
     supplement the carrier's limitations on liability; and
       (3) whether there are abuses of the current regulations 
     that leave the shipper unprotected in the event of loss and 
     damage to a shipment of household goods.

     SEC. 4216. APPLICATION OF STATE CONSUMER PROTECTION LAWS TO 
                   CERTAIN HOUSEHOLD GOODS CARRIERS.

       (a) Study.--The Comptroller General shall conduct a study 
     on the current consumer protection authorities and actions of 
     the Department of Transportation and the impact on shippers 
     and carriers of household goods involved in interstate 
     transportation of allowing State attorneys general to apply 
     State consumer protection laws to such transportation.
       (b) Matters to Be Considered.--In conducting the study, the 
     Comptroller General shall consider, at a minimum--
       (1) the level of consumer protection being provided to 
     consumers through Federal household goods regulations and how 
     household goods regulations relating to consumer protection 
     compare to regulations relating to consumer protection for 
     other modes of transportation regulated by the Department of 
     Transportation;
       (2) the history and background of State enforcement of 
     State consumer protection laws on household goods carriers 
     providing intrastate transportation and what effects such 
     laws have on the ability of intrastate household goods 
     carriers to operate;
       (3) what operational impacts, if any, would result on 
     household goods carriers engaged in interstate commerce being 
     subject to the State consumer protection laws; and
       (4) the potential for States to regulate rates or other 
     business operations if State consumer protection laws applied 
     to interstate household goods movements.
       (c) Consultation.--In conducting the study, the Comptroller 
     General shall consult with the Secretary, State attorneys 
     general, consumer protection agencies, and the household 
     goods industry.
       (d) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     to the Committee of Transportation and Infrastructure of the 
     House of Representatives and the Committee on Commerce, 
     Science and Transportation of the Senate a report on the 
     results of the study.
          Subtitle C--Unified Carrier Registration Act of 2005

     SEC. 4301. SHORT TITLE.

       This subtitle may be cited as the ``Unified Carrier 
     Registration Act of 2005''.

     SEC. 4302. RELATIONSHIP TO OTHER LAWS.

       Except as provided in section 14504 of title 49, United 
     States Code, and sections 14504a and 14506 of title 49, 
     United States Code, as added by this subtitle, this subtitle 
     is not intended to prohibit any State or any political 
     subdivision of any State from enacting, imposing, or 
     enforcing any law or regulation with respect to a motor 
     carrier, motor private carrier, broker, freight forwarder, or 
     leasing company that is not otherwise prohibited by law.

     SEC. 4303. INCLUSION OF MOTOR PRIVATE AND EXEMPT CARRIERS.

       (a) Persons Registered to Provide Transportation or Service 
     as a Motor Carrier or

[[Page H7392]]

     Motor Private Carrier.--Section 13905 of title 49, United 
     States Code, is amended--
       (1) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) Person Registered With Secretary.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     person having registered with the Secretary to provide 
     transportation or service as a motor carrier or motor private 
     carrier under this title, as in effect on January 1, 2005, 
     but not having registered pursuant to section 13902(a), shall 
     be treated, for purposes of this part, to be registered to 
     provide such transportation or service for purposes of 
     sections 13908 and 14504a.
       ``(2) Exclusively intrastate operators.--Paragraph (1) does 
     not apply to a motor carrier or motor private carrier 
     (including a transporter of waste or recyclable materials) 
     engaged exclusively in intrastate transportation 
     operations.''.
       (b) Security Requirement.--Section 13906(a) of such title 
     is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(2) Security requirement.--Not later than 120 days after 
     the date of enactment of the Unified Carrier Registration Act 
     of 2005, any person, other than a motor private carrier, 
     registered with the Secretary to provide transportation or 
     service as a motor carrier under section 13905(b) shall file 
     with the Secretary a bond, insurance policy, or other type of 
     security approved by the Secretary, in an amount not less 
     than required by sections 31138 and 31139.''.
       (c) Termination of Transition Rule.--Section 13902 of such 
     title is amended--
       (1) by adding at the end of subsection (d) the following:
       ``(3) Termination.--This subsection shall cease to be in 
     effect on the transition termination date.''; and
       (2) by redesignating subsection (f) as subsection (g), and 
     inserting after subsection (e) the following:
       ``(f) Modification of Carrier Registration.--
       ``(1) In general.--On and after the transition termination 
     date, the Secretary--
       ``(A) may not register a motor carrier under this section 
     as a motor common carrier or a motor contract carrier;
       ``(B) shall register applicants under this section as motor 
     carriers; and
       ``(C) shall issue any motor carrier registered under this 
     section after that date a motor carrier certificate of 
     registration that specifies whether the holder of the 
     certificate may provide transportation of persons, household 
     goods, other property, or any combination thereof.
       ``(2) Pre-existing certificates and permits.--The Secretary 
     shall redesignate any motor carrier certificate or permit 
     issued before the transition termination date as a motor 
     carrier certificate of registration. On and after the 
     transition termination date, any person holding a motor 
     carrier certificate of registration redesignated under this 
     paragraph may provide both contract carriage (as defined in 
     section 13102(4)(B)) and transportation under terms and 
     conditions meeting the requirements of section 13710(a)(1). 
     The Secretary may not, pursuant to any regulation or form 
     issued before or after the transition termination date, make 
     any distinction among holders of motor carrier certificates 
     of registration on the basis of whether the holder would have 
     been classified as a common carrier or as a contract carrier 
     under--
       ``(A) subsection (d) of this section, as that section was 
     in effect before the transition termination date; or
       ``(B) any other provision of this title that was in effect 
     before the transition termination date.
       ``(3) Transition termination date defined.--In this 
     section, the term `transition termination date' means the 
     first day of January occurring more than 12 months after the 
     date of enactment of the Unified Carrier Registration Act of 
     2005.''.
       (d) Clerical Amendments.--
       (1) Heading for section 13906.--Section 13906 of such title 
     is amended by striking the section designation and heading 
     and inserting the following:

     ``Sec. 13906. Security of motor carriers, motor private 
       carriers, brokers, and freight forwarders''.

       (2) Chapter analysis.--The analysis for chapter 139 of such 
     title is amended by striking the item relating to section 
     13906 and inserting the following:
``13906. Security of motor carriers, motor private carriers, brokers, 
              and freight forwarders.''.

     SEC. 4304. UNIFIED CARRIER REGISTRATION SYSTEM.

       Section 13908 of title 49, United States Code, is amended 
     to read as follows:

     ``Sec. 13908. Registration and other reforms

       ``(a) Establishment of Unified Carrier Registration 
     System.--The Secretary, in cooperation with the States, 
     representatives of the motor carrier, motor private carrier, 
     freight forwarder, and broker industries and after notice and 
     opportunity for public comment, shall issue within 1 year 
     after the date of enactment of the Unified Carrier 
     Registration Act of 2005 regulations to establish an online 
     Federal registration system, to be named the `Unified Carrier 
     Registration System', to replace--
       ``(1) the current Department of Transportation 
     identification number system, the single state registration 
     system under section 14504;
       ``(2) the registration system contained in this chapter and 
     the financial responsibility information system under section 
     13906; and
       ``(3) the service of process agent systems under sections 
     503 and 13304.
       ``(b) Role as Clearinghouse and Depository of 
     Information.--The Unified Carrier Registration System shall 
     serve as a clearinghouse and depository of information on, 
     and identification of, all foreign and domestic motor 
     carriers, motor private carriers, brokers, freight 
     forwarders, and others required to register with the 
     Department of Transportation, including information with 
     respect to a carrier's safety rating, compliance with 
     required levels of financial responsibility, and compliance 
     with the provisions of section 14504a. The Secretary shall 
     ensure that Federal agencies, States, representatives of the 
     motor carrier industry, and the public have access to the 
     Unified Carrier Registration System, including the records 
     and information contained in the System.
       ``(c) Procedures for Correcting Information.--Not later 
     than 60 days after the effective date of this section, the 
     Secretary shall prescribe regulations establishing procedures 
     that enable a motor carrier to correct erroneous information 
     contained in any part of the Unified Carrier Registration 
     System.
       ``(d) Fee System.--The Secretary shall establish, under 
     section 9701 of title 31, a fee system for the Unified 
     Carrier Registration System according to the following 
     guidelines:
       ``(1) Registration and filing evidence of financial 
     responsibility.--The fee for new registrants shall as nearly 
     as possible cover the costs of processing the registration 
     but shall not exceed $300.
       ``(2) Evidence of financial responsibility.--The fee for 
     filing evidence of financial responsibility pursuant to this 
     section shall not exceed $10 per filing. No fee shall be 
     charged for a filing for purposes of designating an agent for 
     service of process or the filing of other information 
     relating to financial responsibility.
       ``(3) Access and retrieval fees.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the fee system shall include a nominal fee for the access to 
     or retrieval of information from the Unified Carrier 
     Registration System to cover the costs of operating and 
     upgrading the System, including the personnel costs incurred 
     by the Department and the costs of administration of the 
     unified carrier registration agreement.
       ``(B) Exceptions.--There shall be no fee charged under this 
     paragraph--
       ``(i) to any agency of the Federal Government or a State 
     government or any political subdivision of any such 
     government for the access to or retrieval of information and 
     data from the Unified Carrier Registration System for its own 
     use; or
       ``(ii) to any representative of a motor carrier, motor 
     private carrier, leasing company, broker, or freight 
     forwarder (as each is defined in section 14504a) for the 
     access to or retrieval of the individual information related 
     to such entity from the Unified Carrier Registration System 
     for the individual use of such entity.
       ``(e) Application to Certain Intrastate Operations.--
     Nothing in this section requires the registration of a motor 
     carrier, a motor private carrier of property, or a 
     transporter of waste or recyclable materials operating 
     exclusively in intrastate transportation not otherwise 
     required to register with the Secretary under another 
     provision of this title.''.

     SEC. 4305. REGISTRATION OF MOTOR CARRIERS BY STATES.

       (a) Termination of Registration Provisions.--Section 14504, 
     and the item relating to such section in the analysis for 
     chapter 145, of title 49, United States Code, are repealed 
     effective on the first January 1st occurring more than 12 
     months after the date of enactment of this Act.
       (b) Unified Carrier Registration System Plan and 
     Agreement.--Chapter 145 of title 49, United States Code is 
     amended by inserting after section 14504 the following:

     ``Sec. 14504a. Unified Carrier Registration System plan and 
       agreement

       ``(a) Definitions.--In this section and section 14506, the 
     following definitions apply :
       ``(1) Commercial motor vehicle.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `commercial motor vehicle' has the meaning such term 
     has under section 31101.
       ``(B) Exception.--With respect to a motor carrier required 
     to make any filing or pay any fee to a State with respect to 
     the motor carrier's authority or insurance related to 
     operation within such State, the motor carrier shall have the 
     option to include, in addition to commercial motor vehicles 
     as defined in subparagraph (A), any self-propelled vehicle 
     used on the highway in commerce to transport passengers or 
     property for compensation regardless of the gross vehicle 
     weight rating of the vehicle or the number of passengers 
     transported by such vehicle.
       ``(2) Base-state.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `base-State' means, with respect to a unified carrier 
     registration agreement, a State--
       ``(i) that is in compliance with the requirements of 
     subsection (e); and
       ``(ii) in which the motor carrier, motor private carrier, 
     broker, freight forwarder, or leasing company to which the 
     agreement applies maintains its principal place of business.
       ``(B) Designation of base-state.--A motor carrier, motor 
     private carrier, broker, freight forwarder, or leasing 
     company may designate another State in which it maintains an 
     office or operating facility to be its base-State in the 
     event that--
       ``(i) the State in which the motor carrier, motor private 
     carrier, broker, freight forwarder, or leasing company 
     maintains its principal place of business is not in 
     compliance with the requirements of subsection (e); or
       ``(ii) the motor carrier, motor private carrier, broker, 
     freight forwarder, or leasing company

[[Page H7393]]

     does not have a principal place of business in the United 
     States.
       ``(3) Intrastate fee.--The term `intrastate fee' means any 
     fee, tax, or other type of assessment, including per vehicle 
     fees and gross receipts taxes, imposed on a motor carrier or 
     motor private carrier for the renewal of the intrastate 
     authority or insurance filings of such carrier with a State.
       ``(4) Leasing company.--The term `leasing company' means a 
     lessor that is engaged in the business of leasing or renting 
     for compensation motor vehicles without drivers to a motor 
     carrier, motor private carrier, or freight forwarder.
       ``(5) Motor carrier.--The term `motor carrier' includes all 
     carriers that are otherwise exempt from this part under 
     subchapter I of chapter 135 or exemption actions by the 
     former Interstate Commerce Commission under this title.
       ``(6) Participating state.--The term `participating State' 
     means a State that has complied with the requirements of 
     subsection (e).
       ``(7) SSRS.--The term `SSRS' means the single state 
     registration system in effect on the date of enactment this 
     section.
       ``(8) Unified carrier registration agreement.--The terms 
     `unified carrier registration agreement' and `UCR agreement' 
     mean the interstate agreement developed under the unified 
     carrier registration plan governing the collection and 
     distribution of registration and financial responsibility 
     information provided and fees paid by motor carriers, motor 
     private carriers, brokers, freight forwarders, and leasing 
     companies pursuant to this section.
       ``(9) Unified carrier registration plan.--The terms 
     `unified carrier registration plan' and `UCR plan' mean the 
     organization of State, Federal, and industry representatives 
     responsible for developing, implementing, and administering 
     the unified carrier registration agreement.
       ``(10) Vehicle registration.--The term `vehicle 
     registration' means the registration of any commercial motor 
     vehicle under the International Registration Plan (as defined 
     in section 31701) or any other registration law or regulation 
     of a jurisdiction.
       ``(b) Applicability of Provisions to Freight Forwarders.--A 
     freight forwarder that operates commercial motor vehicles and 
     is not required to register as a carrier pursuant to section 
     13903(b) shall be subject to the provisions of this section 
     as if the freight forwarder is a motor carrier.
       ``(c) Unreasonable Burden.--For purposes of this section, 
     it shall be considered an unreasonable burden upon interstate 
     commerce for any State or any political subdivision of a 
     State, or any political authority of 2 or more States--
       ``(1) to enact, impose, or enforce any requirement or 
     standards with respect to, or levy any fee or charge on, any 
     motor carrier or motor private carrier providing 
     transportation or service subject to jurisdiction under 
     subchapter I of chapter 135 (in this section referred to as 
     an `interstate motor carrier' and an `interstate motor 
     private carrier', respectively) in connection with--
       ``(A) the registration with the State of the interstate 
     operations of the motor carrier or motor private carrier;
       ``(B) the filing with the State of information relating to 
     the financial responsibility of the a motor carrier or motor 
     private carrier pursuant to sections 31138 or 31139;
       ``(C) the filing with the State of the name of the local 
     agent for service of process of the motor carrier or motor 
     private carrier pursuant to sections 503 or 13304; or
       ``(D) the annual renewal of the intrastate authority, or 
     the insurance filings, of the motor carrier or motor private 
     carrier, or other intrastate filing requirement necessary to 
     operate within the State if the motor carrier or motor 
     private carrier is--
       ``(i) registered under section 13902 or section 13905(b); 
     and
       ``(ii) in compliance with the laws and regulations of the 
     State authorizing the carrier to operate in the State in 
     accordance with section 14501(c)(2)(A); except with respect 
     to--

       ``(I) intrastate service provided by motor carriers of 
     passengers that is not subject to the preemption provisions 
     of section 14501(a);
       ``(II) motor carriers of property, motor private carriers, 
     brokers, or freight forwarders, or their services or 
     operations, that are described in subparagraphs (B) and (C) 
     of section 14501(c)(2).
       ``(III) the intrastate transportation of waste or 
     recyclable materials by any carrier; or

       ``(2) to require any interstate motor carrier or motor 
     private carrier that also performs intrastate operations to 
     pay any fee or tax which a carrier engaged exclusively in 
     interstate operations is exempt.
       ``(d) Unified Carrier Registration Plan.--
       ``(1) Board of directors.--
       ``(A) Governance of plan; establishment.--The unified 
     carrier registration plan shall have a board of directors 
     consisting of representatives of the Department of 
     Transportation, participating States, and the motor carrier 
     industry. The Secretary shall establish the board.
       ``(B) Composition.--The board shall consist of 15 directors 
     appointed by the Secretary as follows:
       ``(i) Federal motor carrier safety administration.--One 
     director from each of the Federal Motor Carrier Safety 
     Administration's 4 service areas (as those areas were defined 
     by the Federal Motor Carrier Safety Administration on January 
     1, 2005) from among the chief administrative officers of the 
     State agencies responsible for overseeing the administration 
     of the UCR agreement.
       ``(ii) State agencies.--Five directors from the 
     professional staffs of State agencies responsible for 
     overseeing the administration of the UCR agreement in their 
     respective States. Nominees for these 5 directorships shall 
     be submitted to the Secretary by the national association of 
     professional employees of the State agencies responsible for 
     overseeing the administration of the UCR agreement in their 
     respective States.
       ``(iii) Motor carrier industry.--Five directors from the 
     motor carrier industry. At least 1 of the appointees under 
     this clause shall be a representative of a national trade 
     association representing the general motor carrier of 
     property industry. At least 1 of the appointees under this 
     clause shall represent a motor carrier that falls within the 
     smallest fleet fee bracket.
       ``(iv) Department of transportation.--The Deputy 
     Administrator of the Federal Motor Carrier Safety 
     Administration, or such other presidential appointee from the 
     Department, as the Secretary may appoint.
       ``(C) Chairperson and vice-chairperson.--The Secretary 
     shall designate 1 director as chairperson and 1 director as 
     vice-chairperson of the board. The chairperson and vice-
     chairperson shall serve in such capacity for the term of 
     their appointment as directors.
       ``(D) Terms.--
       ``(i) Initial terms.--In appointing the initial board, the 
     Secretary shall designate 5 of the appointed directors for 
     initial terms of 3 years, 5 of the appointed directors for 
     initial terms of 2 years, and 5 of the appointed directors 
     for initial terms of 1 year.
       ``(ii) Thereafter.--After the initial term, all directors 
     shall be appointed for terms of 3 years; except that the term 
     of the Deputy Administrator or other individual designated by 
     the Secretary under subparagraph (B)(iv) shall be at the 
     discretion of the Secretary.
       ``(iii) Succession.--A director may be appointed to succeed 
     himself or herself.
       ``(iv) End of service.--A director may continue to serve on 
     the board until his or her successor is appointed.
       ``(2) Rules and regulations governing the ucr agreement.--
     The board of directors shall issue rules and regulations to 
     govern the UCR agreement. The rules and regulations shall--
       ``(A) prescribe uniform forms and formats, for--
       ``(i) the annual submission of the information required by 
     a base-State of a motor carrier, motor private carrier, 
     leasing company, broker, or freight forwarder;
       ``(ii) the transmission of information by a participating 
     State to the Unified Carrier Registration System;
       ``(iii) the payment of excess fees by a State to the 
     designated depository and the distribution of fees by the 
     depository to those States so entitled; and
       ``(iv) the providing of notice by a motor carrier, motor 
     private carrier, broker, freight forwarder, or leasing 
     company to the board of the intent of such entity to change 
     its base-State, and the procedures for a State to object to 
     such a change under subparagraph (C);
       ``(B) provide for the administration of the unified carrier 
     registration agreement, including procedures for amending the 
     agreement and obtaining clarification of any provision of the 
     Agreement;
       ``(C) provide procedures for dispute resolution under the 
     agreement that provide due process for all involved parties; 
     and
       ``(D) designate a depository.
       ``(3) Compensation and expenses.--
       ``(A) In general.--Except for the representative of the 
     Department appointed under paragraph (1)(B)(iv), no director 
     shall receive any compensation or other benefits from the 
     Federal Government for serving on the board or be considered 
     a Federal employee as a result of such service.
       ``(B) Expenses.--All directors shall be reimbursed for 
     expenses they incur attending meetings of the board. In 
     addition, the board may approve the reimbursement of expenses 
     incurred by members of any subcommittee or task force 
     appointed under paragraph (5) for carrying out the duties of 
     the subcommittee or task force. The reimbursement of expenses 
     to directors and subcommittee and task force members shall be 
     under subchapter II of chapter 57 of title 5, United States 
     Code, governing reimbursement of expenses for travel by 
     Federal employees.
       ``(4) Meetings.--
       ``(A) In general.--The board shall meet at least once per 
     year. Additional meetings may be called, as needed, by the 
     chairperson of the board, a majority of the directors, or the 
     Secretary.
       ``(B) Quorum.--A majority of directors shall constitute a 
     quorum.
       ``(C) Voting.--Approval of any matter before the board 
     shall require the approval of a majority of all directors 
     present at the meeting.
       ``(D) Open meetings.--Meetings of the board and any 
     subcommittees or task forces appointed under paragraph (5) 
     shall be subject to the provisions of section 552b of title 
     5.
       ``(5) Subcommittees.--
       ``(A) Industry advisory subcommittee.--The chairperson 
     shall appoint an industry advisory subcommittee. The industry 
     advisory subcommittee shall consider any matter before the 
     board and make recommendations to the board.
       ``(B) Other subcommittees.--The chairperson shall appoint 
     an audit subcommittee, a dispute resolution subcommittee, and 
     any additional subcommittees and task forces that the board 
     determines to be necessary.
       ``(C) Membership.--The chairperson of each subcommittee 
     shall be a director. The other members of subcommittees and 
     task forces may be directors or nondirectors.
       ``(D) Representation on subcommittees.--Except for the 
     industry advisory subcommittee (the membership of which shall 
     consist solely of representatives of entities subject to the 
     fee requirements of subsection (f)), each subcommittee and 
     task force shall include representatives of the participating 
     States and the motor carrier industry.
       ``(6) Delegation of authority.--The board may contract with 
     any person or any agency of

[[Page H7394]]

     a State to perform administrative functions required under 
     the unified carrier registration agreement, but may not 
     delegate its decision or policy-making responsibilities.
       ``(7) Determination of fees.--
       ``(A) Recommendation by board.--The board shall recommend 
     to the Secretary the initial annual fees to be assessed 
     carriers, leasing companies, brokers, and freight forwarders 
     under the unified carrier registration agreement. In making 
     its recommendation to the Secretary for the level of fees to 
     be assessed in any agreement year, and in setting the fee 
     level, the board and the Secretary shall consider--
       ``(i) the administrative costs associated with the unified 
     carrier registration plan and the agreement;
       ``(ii) whether the revenues generated in the previous year 
     and any surplus or shortage from that or prior years enable 
     the participating States to achieve the revenue levels set by 
     the board; and
       ``(iii) the provisions governing fees under in subsection 
     (f)(1).
       ``(B) Setting fees.--The Secretary shall set the initial 
     annual fees for the next agreement year and any subsequent 
     adjustment of those fees--
       ``(i) within 90 days after receiving the board's 
     recommendation under subparagraph (A); and
       ``(ii) after notice and opportunity for public comment.
       ``(8) Liability protections for directors.--No individual 
     appointed to serve on the board shall be liable to any other 
     director or to any other party for harm, either economic or 
     non-economic, caused by an act or omission of the individual 
     arising from the individual's service on the board if--
       ``(A) the individual was acting within the scope of his or 
     her responsibilities as a director; and
       ``(B) the harm was not caused by willful or criminal 
     misconduct, gross negligence, reckless misconduct, or a 
     conscious, flagrant indifference to the right or safety of 
     the party harmed by the individual.
       ``(9) Inapplicability of federal advisory committee act.--
     The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the unified carrier registration plan, the board, or 
     its committees.
       ``(10) Certain fees not affected.--This section does not 
     limit the amount of money a State may charge for vehicle 
     registration or the amount of any fuel use tax a State may 
     impose pursuant to the International Fuel Tax Agreement (as 
     defined in section 31701).
       ``(e) State Participation.--
       ``(1) State plan.--No State shall be eligible to 
     participate in the unified carrier registration plan or to 
     receive any revenues derived under the UCR agreement, unless 
     the State submits to the Secretary, not later than 3 years 
     after the date of enactment of the Unified Carrier 
     Registration Act of 2005, a plan--
       ``(A) identifying the State agency that has or will have 
     the legal authority, resources, and qualified personnel 
     necessary to administer the agreement in accordance with the 
     rules and regulations promulgated by the board of directors; 
     and
       ``(B) demonstrating that an amount at least equal to the 
     revenue derived by the State from the unified carrier 
     registration agreement shall be used for motor carrier safety 
     programs, enforcement, or the administration of the UCR 
     plan and UCR agreement.
       ``(2) Amended plans.--A State that submits a plan under 
     this subsection may change the agency designated in the plan 
     by filing an amended plan with the Secretary and the 
     chairperson of the board of directors.
       ``(3) Withdrawal of plan.--If a State withdraws, or 
     notifies the Secretary that it is withdrawing, the plan it 
     submitted under this subsection, the State may no longer 
     participate in the unified carrier registration agreement or 
     receive any portion of the revenues derived under the 
     agreement. The Secretary shall notify the chairperson upon 
     receiving notice from a State that it is withdrawing its plan 
     or withdrawing from the agreement, or both.
       ``(4) Termination of eligibility.--If a State fails to 
     submit a plan to the Secretary in accordance with paragraph 
     (1) or withdraws its plan under paragraph (3), the State may 
     not submit or resubmit a plan or participate in the 
     agreement.
       ``(5) Provision of plan to chairperson.--The Secretary 
     shall provide a copy of each plan submitted under this 
     subsection to the chairperson of the board of directors not 
     later than 10 days after date of submission of the plan.
       ``(f) Contents of Unified Carrier Registration Agreement.--
     The unified carrier registration agreement shall provide the 
     following:
       ``(1) Fees.--(A) Fees charged--
       ``(i) to a motor carrier, motor private carrier, or freight 
     forwarder in connection with the filing of proof of financial 
     responsibility under the UCR agreement shall be based on the 
     number of commercial motor vehicles owned or operated by the 
     motor carrier, motor private carrier, or freight forwarder; 
     and
       ``(ii) to a broker or leasing company in connection with 
     such a filing shall be equal to the smallest fee charged to a 
     motor carrier, motor private carrier, and freight forwarder 
     or under this paragraph.
       ``(B) The fees shall be determined by the Secretary based 
     upon the recommendation of the board under subsection (d)(7).
       ``(C) The board shall develop for purposes of charging fees 
     no more than 6 and no less than 4 brackets of carriers 
     (including motor private carriers) based on the size of 
     fleet.
       ``(D) The fee scale shall be progressive in the amount of 
     the fee.
       ``(E) The board may ask the Secretary to adjust the fees 
     within a reasonable range on an annual basis if the revenues 
     derived from the fees--
       ``(i) are insufficient to provide the revenues to which the 
     States are entitled under this section; or
       ``(ii) exceed those revenues.
       ``(2) Determination of ownership or operation.--For 
     purposes of this subsection, a commercial motor vehicle is 
     owned or operated by a motor carrier, motor private carrier, 
     or freight forwarder if the vehicle is registered under 
     Federal law or State law, or both, in the name of the motor 
     carrier, motor private carrier, or freight forwarder or is 
     controlled by the motor carrier, motor private carrier, or 
     freight forwarder under a long term lease during a vehicle 
     registration year.
       ``(3) Calculation of number of commercial motor vehicles 
     owned or operated.--The number of commercial motor vehicles 
     owned or operated by a motor carrier, motor private carrier, 
     or freight forwarder for purposes of paragraph (1) shall be 
     based either on the number of commercial motor vehicles the 
     motor carrier, motor private carrier, or freight forwarder 
     has indicated it operates on its most recently filed MCS-150 
     or the total number of such vehicles it owned or operated for 
     the 12-month period ending on June 30 of the year immediately 
     prior to the registration year of the Unified Carrier 
     Registration System. A motor carrier may include in the 
     calculation of its fleet size for purposes of paragraph (1) 
     any commercial motor vehicle. Motor carriers and motor 
     private carriers in the calculation of their fleet size for 
     purposes of paragraph (1) may elect not to include commercial 
     motor vehicle used exclusively in the intrastate 
     transportation of property, waste, or recyclable material.
       ``(4) Payment of fees.--Motor carriers, motor private 
     carriers, leasing companies, brokers, and freight forwarders 
     shall pay all fees required under this section to their base-
     State pursuant to the UCR Agreement.
       ``(g) Payment of Fees.--Revenues derived under the UCR 
     Agreement shall be allocated to participating States as 
     follows:
       ``(1) A State that participated in the SSRS in the last 
     registration year under the SSRS ending before the date of 
     enactment of the Unified Carrier Registration Act of 2005 and 
     complies with subsection (e) is entitled to receive under 
     this section a portion of the revenues generated under the 
     UCR agreement equivalent to the revenues it received under 
     the SSRS in such last registration year, as long as the State 
     continues to comply with subsection (e).
       ``(2) A State that collected intrastate registration fees 
     from interstate motor carriers, interstate motor private 
     carriers, or interstate exempt carriers and complies with 
     subsection (e) is entitled to receive under this section an 
     additional portion of the revenues generated under the UCR 
     agreement equivalent to the revenues it received from such 
     carriers in the last calendar year ending before the date of 
     enactment of the Unified Carrier Registration Act of 2005, as 
     long as the State continues to comply with subsection (e).
       ``(3) States that comply with subsection (e) but did not 
     participate in SSRS during such last registration year shall 
     be entitled under this section to an annual allotment not to 
     exceed $500,000 from the revenues generated under the UCR 
     agreement, as long as the State continues to comply with the 
     provisions of subsection (e).
       ``(4) The amount of revenues generated under the UCR 
     agreement to which a State is entitled under this section 
     shall be calculated by the board and approved by the 
     Secretary.
       ``(h) Distribution of UCR Agreement Revenues.--
       ``(1) Eligibility.--Each State that is in compliance with 
     subsection (e) shall be entitled under this section to a 
     portion of the revenues derived from the UCR Agreement in 
     accordance with subsection (g).
       ``(2) Entitlement to revenues.--A State that is in 
     compliance with subsection (e) may retain an amount of the 
     gross revenues it collects from motor carriers, motor private 
     carriers, brokers, freight forwarders and leasing companies 
     under the UCR agreement equivalent to the portion of revenues 
     to which the State is entitled under subsection (g). All 
     revenues a participating State collects in excess of the 
     amount to which the State is so entitled shall be forwarded 
     to the depository designated by the board under subsection 
     (d)(2)(D).
       ``(3) Distribution of funds from depository.--The excess 
     funds deposited in the depository shall be distributed by the 
     board of directors as follows:
       ``(A) On a pro rata basis to each participating State that 
     did not collect revenues under the UCR agreement equivalent 
     to the amount such State is entitled under subsection (g), 
     except that the sum of the gross revenues collected under the 
     UCR agreement by a participating State and the amount 
     distributed to it from the depository shall not exceed the 
     amount to which the State is entitled under subsection (g).
       ``(B) After all distributions under subparagraph (A) have 
     been made, to pay the administrative costs of the UCR plan 
     and the UCR agreement.
       ``(4) Retention of certain excess funds.--Any excess funds 
     held by the depository after distributions and payments under 
     paragraphs (3)(A) and (3)(B) shall be retained in the 
     depository, and the fees charged under the UCR agreement to 
     motor carriers, motor private carriers, leasing companies, 
     freight forwarders, and brokers for the next fee year shall 
     be reduced by the Secretary accordingly.
       ``(i) Enforcement.--
       ``(1) Civil actions.--Upon request by the Secretary, the 
     Attorney General may bring a civil action in the United 
     States district court described in paragraph (2) to enforce 
     an order issued to require compliance with this section and 
     with the terms of the UCR agreement.

[[Page H7395]]

       ``(2) Venue.--An action under this section may be brought 
     only in a United States district court in the State in which 
     compliance with the order is required.
       ``(3) Relief.--Subject to section 1341 of title 28, the 
     court, on a proper showing shall issue a temporary 
     restraining order or a preliminary or permanent injunction 
     requiring that the State or any person comply with this 
     section.
       ``(4) Enforcement by states.--Nothing in this section--
       ``(A) prohibits a participating State from issuing 
     citations and imposing reasonable fines and penalties 
     pursuant to the applicable laws and regulations of the State 
     on any motor carrier, motor private carrier, freight 
     forwarder, broker, or leasing company for failure to--
       ``(i) submit information documents as required under 
     subsection (d)(2); or
       ``(ii) pay the fees required under subsection (f); or
       ``(B) authorizes a State to require a motor carrier, motor 
     private carrier, or freight forwarder to display as evidence 
     of compliance any form of identification in excess of those 
     permitted under section 14506 on or in a commercial motor 
     vehicle.
       ``(j) Application to Intrastate Carriers.--Notwithstanding 
     any other provision of this section, a State may elect to 
     apply the provisions of the UCR agreement to motor carriers 
     and motor private carriers and freight forwarders subject to 
     its jurisdiction that operate solely in intrastate commerce 
     within the borders of the State.''.
       (c) Clerical Amendment.--The analysis for such chapter is 
     amended by inserting after the item relating to section 14504 
     the following:

``14504a. Unified Carrier Registration System plan and agreement.''.

     SEC. 4306. IDENTIFICATION OF VEHICLES.

       (a) In General.--Chapter 145 of title 49, United States 
     Code; is amended by adding at the end the following:

     ``Sec. 14506. Identification of vehicles

       ``(a) Restriction on Requirements.--No State, political 
     subdivision of a State, interstate agency, or other political 
     agency of 2 or more States may enact or enforce any law, 
     rule, regulation standard, or other provision having the 
     force and effect of law that requires a motor carrier, motor 
     private carrier, freight forwarder, or leasing company to 
     display any form of identification on or in a commercial 
     motor vehicle (as defined in section 14504a), other than 
     forms of identification required by the Secretary of 
     Transportation under section 390.21 of title 49, Code of 
     Federal Regulations.
       ``(b) Exception.--Notwithstanding subsection (a), a State 
     may continue to require display of credentials that are 
     required--
       ``(1) under the International Registration Plan under 
     section 31704;
       ``(2) under the International Fuel Tax Agreement under 
     section 31705;
       ``(3) under a State law regarding motor vehicle license 
     plates or other displays that the Secretary determines are 
     appropriate;
       ``(4) in connection with Federal requirements for hazardous 
     materials transportation under section 5103; or
       ``(5) in connection with the Federal vehicle inspection 
     standards under section 31136.''.
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by inserting after the item relating to section 14505 
     the following:

``14506. Identification of vehicles.''.

     SEC. 4307. USE OF UCR AGREEMENT REVENUES AS MATCHING FUNDS.

       (a) In General.--Section 31103(a) of title 49, United 
     States Code, is amended--
       (1) by striking ``31102(b)(1)(D)'' inserting 
     ``31102(b)(1)(E)''; and
       (2) by inserting ``Amounts generated under the unified 
     carrier registration agreement under section 14504a and 
     received by a State and used for motor carrier safety 
     purposes may be included as part of the State's share not 
     provided by the United States.'' after ``United States 
     Government.''.
       (b) Technical Correction.--Sections 31102(b)(3) of such 
     title is amended by striking ``paragraph (1)(D)'' and 
     inserting ``paragraph (1)(E)''.

     SEC. 4308. REGULATIONS.

       The Secretary may issue such regulations as the Secretary 
     determines are necessary to carry out this subtitle and the 
     amendments made by this subtitle.
                  Subtitle D--Miscellaneous Provisions

     SEC. 4401. TECHNICAL ADJUSTMENT.

       (a) Definitions.--In this section the following 
     definitions:
       (1) The term ``Administrator'' means the Administrator of 
     General Services.
       (2) The term ``donee'' means the corporation to which the 
     Administrator donated the vessel.
       (3) The term ``vessel'' means the vessel with Unit 
     Identification number 13862.
       (b) Transfer.--Not later than 30 days after the date of 
     enactment of this Act, the donee shall transfer all of the 
     rights, title, and interest of the donee in and to the vessel 
     to the Administrator.
       (c) Future Conveyance.--Within 30 days after the transfer 
     of the vessel under subsection (b), the Administrator shall 
     remove the vessel to a Federal facility. Within 60 days after 
     the date of the transfer of the vessel under subsection (b), 
     the Administrator shall sell the vessel for fair market 
     value. The Administrator shall require as a condition of any 
     conveyance of the vessel that the vessel shall not be used 
     within the United States, as defined in section 2101(44) of 
     title 46, United States Code, or within the territorial sea 
     of the United States as described in Presidential 
     Proclamation No. 5928 of December 27, 1988. The donee shall 
     not be required to pay any amounts for removing the vessel to 
     a Federal facility under this subsection.
       (d) Effect on Pending Lawsuits.--Nothing in this section 
     shall have any effect on any lawsuit relating to transfer or 
     use of the vessel.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary $4,000,000 for a grant to 
     the donee. The Secretary shall transfer any funds 
     appropriated under this subsection to the Secretary of the 
     Interior, who shall obligate such funds through instruments 
     and procedures that are equivalent to the instruments and 
     procedures required to be used by the Bureau of Indian 
     Affairs pursuant to title IV of the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 458aa et seq.). 
     Amounts paid to the donee under this section shall be treated 
     as revenues originating from the Alaska Native Fund for 
     purposes of section 21(a) of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1602(a)).

     SEC. 4402. TRANSFER.

       Section 407(b) of the Coast Guard Authorization Act of 1998 
     (112 Stat. 3430) is amended--
       (1) by striking ``made--'' and all that follows through 
     ``(1) subject'' and inserting ``made subject''; and
       (2) by striking ``; and'' and all that follows and 
     inserting a period.

     SEC. 4403. EXTENSION OF ASSISTANCE.

       Section 206(c) of Public Law 89-702 (16 U.S.C. 1166(c)) is 
     amended--
       (1) by striking ``for fiscal years 2001, 2002, 2003, 2004, 
     and 2005'' the first place it it appears; and
       (2) in paragraph (1) by inserting ``, for fiscal years 
     2001, 2002, 2003, 2004, 2005, 2006, and 2007'' after 
     ``subsection (a)''.

     SEC. 4404. DESIGNATIONS.

       (a) Designation.--In the States of Alaska and Hawaii, 
     members of the State legislature may serve on the policy 
     board of a metropolitan planning organization designated 
     under section 134 of title 23, United States Code, if such 
     service is allowed by State law.
       (b) Redesignation.--In the States of Alaska and Hawaii, a 
     metropolitan planning organization designated under section 
     134 of title 23, United Sates Code, may be redesignated as a 
     result of changes in State law that define new requirements 
     for the metropolitan planning organization policy board.

     SEC. 4405. LIMITED EXCEPTION.

        Section 44704(a) of title 49, United States Code is 
     amended--
       (1) in paragraph (1) by striking ``The'' the first place it 
     appears and inserting ``Issuance, investigations, and 
     tests.--The'';
       (2) in paragraph (2) by striking ``The'' and inserting 
     ``Specifications.--The'';
       (3) in paragraph (3) by striking ``If'' and inserting 
     ``Special rules for new aircraft and appliances.--Except as 
     provided in paragraph (4), if'';
       (4) by adding at the end the following:
       ``(4) Limitation for aircraft manufactured before august 5, 
     2004.--Paragraph (3) shall not apply to a person who began 
     the manufacture of an aircraft before August 5, 2004, and who 
     demonstrates to the satisfaction of the Administrator that 
     such manufacture began before August 5, 2004, if the name of 
     the holder of the type certificate for the aircraft does not 
     appear on the airworthiness certificate or identification 
     plate of the aircraft. The holder of the type certificate for 
     the aircraft shall not be responsible for the continued 
     airworthiness of the aircraft. A person may invoke the 
     exception provided by this paragraph with regard to the 
     manufacture of only one aircraft.'';
       (5) by indenting paragraph (1); and
       (6) by aligning the left margin of paragraphs (1), (2), and 
     (3) with the left margin of paragraph (4) (as added by 
     paragraph (4) of this section.)

     SEC. 4406. AIRPORT LAND AMENDMENT.

       (a) Release of Reverter Condition.--The Secretary of the 
     Interior shall execute such instruments as are necessary to 
     release the condition on a portion of land situated adjacent 
     to the community of Beaver, Alaska, conveyed pursuant to 
     Patent No. 50-69-0130 and dated August 23, 1968, requiring 
     that such land reverts to the United States if the land is 
     not used for airport purposes. The Secretary shall ensure 
     that the release executed pursuant to this subsection--
       (1) applies only to approximately 33 acres of land 
     identified as tracts II through VI of the Beaver Airport, a 
     part of U.S. Survey No. 3798, Alaska (referred to in this 
     section as the ``community expansion land'');
       (2) is without any requirement for receipt of fair market 
     value for the release and conveyance of the conditions 
     otherwise applicable to the community expansion land; and
       (3) is contingent on the conveyance by the State of Alaska 
     of the community expansion land to the Beaver Kwit'chin 
     Corporation, the Village Corporation of the village of 
     Beaver, Alaska.
       (b) Reconveyance.--The Beaver Kwit'chin Corporation--
       (1) shall reconvey to any individual who currently occupies 
     a portion of the land referred to in subsection (a) or 
     successor in interest to such an individual, all right, 
     title, and interest of the Kwit'chin Corporation in and to 
     such land as is currently occupied;
       (2) may subsequently--
       (A) convey the remaining land to other individuals or 
     persons for community expansion purposes; or
       (B) retain the remaining land in whole or in part for 
     community uses.

     SEC. 4407. RIGHTS-OF-WAY.

       Notwithstanding any other provision of law, the reciprocal 
     rights-of-way and easements identified on the map numbered 
     92337 and dated June 15, 2005, are hereby enacted into law.

     SEC. 4408. RIALTO MUNICIPAL AIRPORT.

       (a) Findings.--Congress finds that--

[[Page H7396]]

       (1) Rialto Municipal Airport/Art Scholl Memorial Airport 
     (Rialto Municipal Airport) is a general aviation airport 
     located within a 20-mile radius of 10 other general aviation 
     airports;
       (2) Rialto Municipal Airport is located approximately 8.5 
     nautical miles from the former Norton Air Force Base which 
     was selected for closure by the Base Realignment and Closure 
     Commission in 1988 and was closed in 1994;
       (3) there has been a significant decline in based aircraft 
     and aviation operations at Rialto Municipal Airport due to 
     the unexpected impact of increased capacity in the immediate 
     vicinity of the airport;
       (4) the transfer of Rialto Municipal Airport's operations, 
     assets and liabilities is supported by the general aviation 
     operators at the airport and will not compromise service or 
     safety; and
       (5) the closure of Rialto Municipal Airport shall be in 
     compliance with applicable federal laws and regulations.
       (b) In General.--Notwithstanding any law, regulation or 
     grant assurance, but subject to the requirements of this 
     section, the United States shall release all restrictions, 
     conditions, and limitations on the use, encumbrance, 
     conveyance, or closure of the Rialto Municipal Airport, in 
     Rialto, California, to the extent such restrictions, 
     conditions, and limitations are enforceable by the United 
     States.
       (c) Conditions.--A release under subsection (b) shall be 
     subject to the following conditions:
       (1) Upon conveyance of the land or transfer of any interest 
     or rights of use or occupancy of the land--
       (A) the city of Rialto will pay the United States 45 
     percent of the current fair market value of the property, and 
     this amount shall be used for projects eligible under chapter 
     471 of title 49, United States Code, at a commercial 
     airport--
       (i) for which a certificate is issued under part 139 of 
     title 14, Code of Federal Regulations;
       (ii) that is located within 10 nautical miles of Rialto 
     Municipal Airport; and
       (iii) that was included on the Department of Defense base 
     closure list of 1988;
       (B) the remaining 55 percent of the fair market value 
     referred to in subparagraph (A) shall be retained by the city 
     of Rialto;
       (C) the city shall pay to the United States 90 percent of 
     the unamortized portion of any Federal development grant for 
     airport facilities other than land, amortized over a 20-year 
     term, with interest. These funds shall be payable over a 
     period of 5 years and deposited into the Airport and Airway 
     Trust Fund and available for projects eligible under chapter 
     471 of title 49, United States Code.
       (2) The United States will not be responsible for any 
     environmental cleanup of any land with respect to which such 
     release is made.
       (3) All airport and aviation-related equipment located at 
     Rialto Municipal Airport and owned by the city of Rialto 
     before the date of the release will be transferred to a 
     commercial airport referred to in paragraph (1)(A).

     SEC. 4409. CONFORMING AMENDMENTS.

       Section 218 of title 23, United States Code, is amended--
       (1) in subsection (a) by striking ``prior to the date of 
     the enactment of the reauthorization of the Transportation 
     Equity Act for the 21st Century''; and
       (2) by adding at the end the following:
       ``(c) For purposes of this section, the term `Alaska Marine 
     Highway System' includes all existing or planned 
     transportation facilities and equipment in Alaska, including 
     the lease, purchase, or construction of vessels, terminals, 
     docks, floats, ramps, staging areas, parking lots, bridges 
     and approaches thereto, and necessary roads.''.

     SEC. 4410. RALPH M. BARTHOLOMEW VETERANS' MEMORIAL BRIDGE.

       (a) Designation.--The bridge joining the Island of Gravina 
     to the community of Ketchican, Alaska, constructed pursuant 
     to section 144(g)(1)(E) of title 23, United States Code, is 
     designated as the ``Ralph M. Bartholomew Veterans' Memorial 
     Bridge''.
       (b) References.--Any reference in law, map, regulation, 
     document, paper, or other record of the United States to the 
     bridge referred to in subsection (a) shall be deemed to be a 
     reference to the ``Ralph M. Bartholomew Veterans' Memorial 
     Bridge''.

     SEC. 4411. DON YOUNG'S WAY.

       (a) Designation.--The Knik Arm bridge in Alaska to be 
     planned, designed, and constructed pursuant to section 117 of 
     title 23, United States Code, as high priority project number 
     2465 under section 1702 of this Act, is designated as ``Don 
     Young's Way''.
       (b) References.--Any reference in law, map, regulation, 
     document, paper, or other record of the United States to the 
     bridge referred to in subsection (a) shall be deemed to be a 
     reference to ``Don Young's Way''.

     SEC. 4412. QUALITY BANK ADJUSTMENTS.

       (a) Definition of TAPS Quality Bank Adjustments.--In this 
     section, the term ``TAPS quality bank adjustments'' means 
     monetary adjustments paid by or to a shipper of oil on the 
     Trans Alaska Pipeline System through the operation of a 
     quality bank to compensate for the value of the oil of the 
     shipper that is commingled in the Pipeline.
       (b) Proceedings.--
       (1) In general.--In a proceeding commenced before the date 
     of enactment of this Act, the Federal Energy Regulatory 
     Commission may not order retroactive changes in TAPS quality 
     bank adjustments for any period before February 1, 2000.
       (2) Proceedings commenced after the date of enactment.--In 
     a proceeding commenced after the date of enactment of this 
     Act, the Commission may not order retroactive changes in TAPS 
     quality bank adjustments for any period that exceeds the 15-
     month period immediately preceding the earliest date of the 
     first order of the Federal Energy Regulatory Commission 
     imposing quality bank adjustments in the proceeding.
       (c) Deadline for Claims.--
       (1) In general.--A claim relating to a quality bank under 
     this section shall be filed with the Federal Energy 
     Regulatory Commission not later than 2 years after the date 
     on which the claim arose.
       (2) Final order.--Not later than 15 months after the date 
     on which a claim is filed under paragraph (1), the Federal 
     Energy Regulatory Commission shall issue a final order with 
     respect to the claim.

     SEC. 4413. TECHNICAL AMENDMENT.

       Section 5006(d) of Public Law 101-380 is amended by 
     inserting ``annual'' before ``amount''.
                           TITLE V--RESEARCH
                          Subtitle A--Funding

     SEC. 5101. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Surface transportation research, development, and 
     deployment program.--To carry out sections 502, 503, 506, 
     507, 509, and 510 of title 23, United States Code, and 
     sections 5201, 5203, 5204, 5309, 5501, 5502, 5503, 5504, 
     5506, 5511, 5512, 5513 of this title $196,400,000 for each of 
     fiscal years 2005 through 2009 shall be available.
       (2) Training and education.--To carry out section 504 of 
     title 23, United States Code, and section 5502 of this Act 
     $26,700,000 for each of fiscal years 2005 through 2009.
       (3) Bureau of transportation statistics.--For the Bureau of 
     Transportation Statistics to carry out section 111 of title 
     49, United States Code, $27,000,000 for each of fiscal years 
     2005 through 2009.
       (4) University transportation research.--To carry out 
     sections 5505 and 5506 of title 49, United States Code, 
     $69,700,000 for each of fiscal years 2005 through 2009.
       (5) Intelligent transportation systems (its) research.--To 
     carry out subtitle C of this title, and section 511 of title 
     23, United States Code, $110,000,000 for each of fiscal years 
     2005 through 2009.
       (6) ITS deployment.--To carry out sections 5208 and 5209 of 
     the Transportation Equity Act for the 21st Century (112 Stat. 
     458; 112 Stat. 460), $122,000,000 for fiscal year 2005.
       (b) Applicability of Title 23, United States Code.--Funds 
     authorized to be appropriated by subsection (a) shall be 
     available for obligation in the same manner as if such funds 
     were apportioned under chapter 1 of title 23, United States 
     Code; except that the Federal share of the cost of a project 
     or activity carried out using such funds shall be 50 percent, 
     unless otherwise expressly provided by this Act (including 
     the amendments made by this Act) or otherwise determined by 
     the Secretary, and such funds shall remain available until 
     expended and shall not be transferable.

     SEC. 5102. OBLIGATION CEILING.

       Notwithstanding any other provision of law, the total of 
     all obligations from amounts made available from the Highway 
     Trust Fund (other than the Mass Transit Account) by section 
     5101(a) of this Act shall be $410,888,888 for each of fiscal 
     years 2005 through 2009.

     SEC. 5103. FINDINGS.

       Congress finds the following:
       (1) Research and development are critical to developing and 
     maintaining a transportation system that meets the goals of 
     safety, mobility, economic vitality, efficiency, equity, and 
     environmental protection.
       (2) Federally sponsored surface transportation research and 
     development has produced many successes. The development of 
     rumble strips has increased safety; research on materials has 
     increased the lifespan of pavements, saving money and 
     reducing the disruption caused by construction; and 
     Geographic Information Systems have improved the management 
     and efficiency of transit fleets.
       (3) Despite these important successes, the Federal surface 
     transportation research and development investment represents 
     less than one percent of overall Government spending on 
     surface transportation.
       (4) While Congress increased funding for overall 
     transportation programs by about 40 percent in the 
     Transportation Equity Act for the 21st Century, funding for 
     transportation research and development remained relatively 
     flat.
       (5) The Federal investment in research and development 
     should be balanced between short-term applied and long-term 
     fundamental research and development. The investment should 
     also cover a wide range of research areas, including research 
     on materials and construction, research on operations, 
     research on transportation trends and human factors, and 
     research addressing the institutional barriers to deployment 
     of new technologies.
       (6) That it is in the United States interest to increase 
     the Federal investment in transportation research and 
     development, and to conduct research in critical research 
     gaps, in order to ensure that the transportation system meets 
     the goals of safety, mobility, economic vitality, efficiency, 
     equity, and environmental protection.
            Subtitle B--Research, Technology, and Education

     SEC. 5201. RESEARCH, TECHNOLOGY, AND EDUCATION.

       (a) Research, Technology, and Education.--Title 23, United 
     States Code, is amended--
       (1) in the table of chapters by striking the item relating 
     to chapter 5 and inserting the following:


[[Page H7397]]


``5. Research, Technology, and Education..........................501''

     ; and
       (2) by striking the heading for chapter 5 and inserting the 
     following:

          ``CHAPTER 5--RESEARCH, TECHNOLOGY, AND EDUCATION''.

       (b) Statement of Principles Governing Research and 
     Technology Investments.--Section 502 of such title is 
     amended--
       (1) by redesignating subsections (a) through (g) as 
     subsections (b) through (h), respectively; and
       (2) by inserting before subsection (b) (as so redesignated) 
     the following:
       ``(a) Basic Principles Governing Research and Technology 
     Investments.--
       ``(1) Coverage.--Surface transportation research and 
     technology development shall include all activities leading 
     to technology development and transfer, as well as the 
     introduction of new and innovative ideas, practices, and 
     approaches, through such mechanisms as field applications, 
     education and training, and technical support.
       ``(2) Federal responsibility.--Funding and conducting 
     surface transportation research and technology transfer 
     activities shall be considered a basic responsibility of the 
     Federal Government when the work--
       ``(A) is of national significance;
       ``(B) supports research in which there is a clear public 
     benefit and private sector investment is less than optimal;
       ``(C) supports a Federal stewardship role in assuring that 
     State and local governments use national resources 
     efficiently; or
       ``(D) presents the best means to support Federal policy 
     goals compared to other policy alternatives.
       ``(3) Role.--Consistent with these Federal 
     responsibilities, the Secretary shall--
       ``(A) conduct research;
       ``(B) support and facilitate research and technology 
     transfer activities by State highway agencies;
       ``(C) share results of completed research; and
       ``(D) support and facilitate technology and innovation 
     deployment.
       ``(4) Program content.--A surface transportation research 
     program shall include--
       ``(A) fundamental, long-term highway research;
       ``(B) research aimed at significant highway research gaps 
     and emerging issues with national implications; and
       ``(C) research related to policy and planning.
       ``(5) Stakeholder input.--Federal surface transportation 
     research and development activities shall address the needs 
     of stakeholders. Stakeholders include States, metropolitan 
     planning organizations, local governments, the private 
     sector, researchers, research sponsors, and other affected 
     parties, including public interest groups.
       ``(6) Competition and peer review.--Except as otherwise 
     provided in this chapter, the Secretary shall award, to the 
     maximum extent practicable, all grants, contracts, and 
     cooperative agreements for research and development under 
     this chapter based on open competition and peer review of 
     proposals.
       ``(7) Performance review and evaluation.--To the maximum 
     extent practicable, all surface transportation research and 
     development projects shall include a component of performance 
     measurement and evaluation. Performance measures shall be 
     established during the proposal stage of a research and 
     development project and shall, to the maximum extent 
     possible, be outcome-based. All evaluations shall be made 
     readily available to the public.
       ``(8) Technological innovation.--The programs and 
     activities carried out under this section shall be consistent 
     with the surface transportation research and technology 
     development strategic plan developed under section 508.''.
       (c) Procurement for Research, Development, and Technology 
     Transfer Activities.--Section 502(b)(3) of such title (as 
     redesignated by subsection (b) of this section) is amended to 
     read as follows:
       ``(3) Cooperation, grants, and contracts.--The Secretary 
     may carry out research, development, and technology transfer 
     activities related to transportation--
       ``(A) independently;
       ``(B) in cooperation with other Federal departments, 
     agencies, and instrumentalities and Federal laboratories; or
       ``(C) by making grants to, or entering into contracts and 
     cooperative agreements with one or more of the following: the 
     National Academy of Sciences, the American Association of 
     State Highway and Transportation Officials, any Federal 
     laboratory, Federal agency, State agency, authority, 
     association, institution, for-profit or nonprofit 
     corporation, organization, foreign country, or any other 
     person.''.
       (d) Transportation Pooled Fund Program.--Section 502(b) of 
     such title (as redesignated by subsection (b) of this 
     section) is amended by adding at the end the following:
       ``(6) Pooled funding.--
       ``(A) Cooperation.--To promote effective utilization of 
     available resources, the Secretary may cooperate with a State 
     and an appropriate agency in funding research, development, 
     and technology transfer activities of mutual interest on a 
     pooled funds basis.
       ``(B) Secretary as agent.--The Secretary may enter into 
     contracts, cooperative agreements, and grants as the agent 
     for all participating parties in carrying out such research, 
     development, or technology transfer activities.''.
       (e) Operations Elements in Research Activities.--Section 
     502 of such title is further amended--
       (1) in subsection (b)(1)(B) (as redesignated by subsection 
     (b) of this section) by inserting ``transportation system 
     management and operations,'' after ``operation,'';
       (2) in subsection (d)(5)(C) (as redesignated by subsection 
     (b) of this section) by inserting ``system management and'' 
     after ``transportation''; and
       (3) by inserting at the end of subsection (d) (as 
     redesignated by subsection (b) of this section) the 
     following:
       ``(12) Investigation and development of various operational 
     methodologies to reduce the occurrence and impact of 
     recurrent congestion and nonrecurrent congestion and increase 
     transportation system reliability.
       ``(13) Investigation of processes, procedures, and 
     technologies to secure container and hazardous material 
     transport, including the evaluation of regulations and the 
     impact of good security practices on commerce and 
     productivity.
       ``(14) Research, development, and technology transfer 
     related to asset management.''.
       (f) Facilitating Transportation Research and Technology 
     Deployment Partnerships.--Section 502(c)(2) of such title (as 
     redesignated by subsection (b) of this section) is amended to 
     read as follows:
       ``(2) Cooperation, grants, contracts, and agreements.--
     Notwithstanding any other provision of law, the Secretary may 
     directly initiate contracts, cooperative research and 
     development agreements (as defined in section 12 of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a)) to fund, and accept funds from, the Transportation 
     Research Board of the National Research Council of the 
     National Academy of Sciences, State departments of 
     transportation, cities, counties, and their agents to conduct 
     joint transportation research and technology efforts.''.
       (g) Exploratory Advanced Research Program.--Section 502(e) 
     of such title (as redesignated by subsection (b) of this 
     section) is amended to read as follows:
       ``(e) Exploratory Advanced Research.--
       ``(1) In general.--The Secretary shall establish an 
     exploratory advanced research program, consistent with the 
     surface transportation research and technology development 
     strategic plan developed under section 508 that addresses 
     longer-term, higher-risk research with potentially dramatic 
     breakthroughs for improving the durability, efficiency, 
     environmental impact, productivity, and safety (including 
     bicycle and pedestrian safety) aspects of highway and 
     intermodal transportation systems. In carrying out the 
     program, the Secretary shall strive to develop partnerships 
     with public and private sector entities.
       ``(2) Research areas.--In carrying out the program, the 
     Secretary may make grants and enter into cooperative 
     agreements and contracts in such areas of surface 
     transportation research and technology as the Secretary 
     determines appropriate, including the following:
       ``(A) Characterization of materials used in highway 
     infrastructure, including analytical techniques, 
     microstructure modeling, and the deterioration processes.
       ``(B) Assessment of the effects of transportation decisions 
     on human health.
       ``(C) Development of surrogate measures of safety.
       ``(D) Environmental research.
       ``(E) Data acquisition techniques for system condition and 
     performance monitoring.
       ``(F) System performance data and information processing 
     needed to assess the day-to-day operational performance of 
     the system in support of hour-to-hour operational 
     decisionmaking.''.
       (h) Funding.--Of the amounts made available by section 
     5101(a) of this Act, $14,000,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 
     502(e) of such title.
       (i) Long-Term Pavement Performance Program.--
       (1) In general.--Section 502(f) of such title (as 
     redesignated by subsection (b) of this section) is amended to 
     read as follows:
       ``(f) Long-Term Pavement Performance Program.--
       ``(1) Authority.--The Secretary shall continue to carry 
     out, through September 30, 2009, tests, monitoring, and data 
     analysis under the long-term pavement performance program.
       ``(2) Grants, cooperative agreements, and contracts.--Under 
     the program, the Secretary shall make grants and enter into 
     cooperative agreements and contracts to--
       ``(A) monitor, material-test, and evaluate highway test 
     sections in existence as of the date of the grant, agreement, 
     or contract;
       ``(B) analyze the data obtained under subparagraph (A); and
       ``(C) prepare products to fulfill program objectives and 
     meet future pavement technology needs.''.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $10,120,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 
     502(f) of such title.
       (j) Seismic Research.--
       (1) In general.--Section 502(g) of such title (as 
     redesignated by subsection (b) of this section) is amended to 
     read as follows:
       ``(g) Seismic Research.--The Secretary shall--
       ``(1) in consultation and cooperation with Federal agencies 
     participating in the National Earthquake Hazards Reduction 
     Program established by section 5 of the Earthquake Hazards 
     Reduction Act of 1977 (42 U.S.C. 7704), coordinate the 
     conduct of seismic research;
       ``(2) take such actions as are necessary to ensure that the 
     coordination of the research is consistent with--
       ``(A) planning and coordination activities of the National 
     Institute of Standards and Technology under section 5(b)(1) 
     of that Act (42 U.S.C. 7704(b)(1)); and
       ``(B) the plan developed by the Director of the National 
     Institute of Standards and Technology under section 8(b) of 
     that Act (42 U.S.C. 7705b(b)); and

[[Page H7398]]

       ``(3) in cooperation with the Center for Civil Engineering 
     Research at the University of Nevada, Reno, and the National 
     Center for Earthquake Engineering Research at the University 
     of Buffalo, carry out a seismic research program--
       ``(A) to study the vulnerability of the Federal-aid system 
     and other surface transportation systems to seismic activity;
       ``(B) to develop and implement cost-effective methods to 
     reduce the vulnerability; and
       ``(C) to conduct seismic research and upgrade earthquake 
     simulation facilities as necessary to carry out the 
     program.''.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $2,500,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 
     502(g) of such title.
       (k) Infrastructure Investment Needs Report.--Section 502 of 
     such title is further amended by adding at the end the 
     following:
       ``(h) Infrastructure Investment Needs Report.--
       ``(1) In general.--Not later than July 31, 2006, and July 
     31 of every second year thereafter, the Secretary shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report that 
     describes--
       ``(A) estimates of the future highway, transit, and bridge 
     needs of the United States; and
       ``(B) the backlog of current highway, transit, and bridge 
     needs.
       ``(2) Comparison with prior reports.--Each report under 
     paragraph (1) shall provide the means, including all 
     necessary information, to relate and compare the conditions 
     and service measures used in the previous biennial 
     reports.''.
       (l) Turner-Fairbank Highway Research Center.--Section 502 
     of such title is further amended by adding at the end the 
     following:
       ``(i) Turner-Fairbank Highway Research Center.--
       ``(1) In general.--The Secretary shall operate in the 
     Federal Highway Administration a Turner-Fairbank Highway 
     Research Center.
       ``(2) Uses of the center.--The Turner-Fairbank Highway 
     Research Center shall support--
       ``(A) the conduct of highway research and development 
     related to new highway technology;
       ``(B) the development of understandings, tools, and 
     techniques that provide solutions to complex technical 
     problems through the development of economical and 
     environmentally sensitive designs, efficient and quality-
     controlled construction practices, and durable materials; and
       ``(C) the development of innovative highway products and 
     practices.''.
       (m) Biobased Transportation Research.--Of the amounts made 
     available by section 5101(a)(1) of this Act, $12,500,000 for 
     each of fiscal years 2006 through 2009, equally divided and 
     available, shall be available to carry out biobased research 
     of national importance at the National Biodiesel Board and at 
     research centers identified in section 9011 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 8109).

     SEC. 5202. LONG-TERM BRIDGE PERFORMANCE PROGRAM; INNOVATIVE 
                   BRIDGE RESEARCH AND DEPLOYMENT PROGRAM.

       (a) Long-Term Bridge Performance Program.--
       (1) In general.--Section 502 of title 23, United States 
     Code, is further amended by adding at the end the following:
       ``(j) Long-Term Bridge Performance Program.--
       ``(1) Authority.--The Secretary shall establish a 20-year 
     long-term bridge performance program.
       ``(2) Grants, cooperative agreements, and contracts.--Under 
     the program, the Secretary shall make grants and enter into 
     cooperative agreements and contracts to--
       ``(A) monitor, material-test, and evaluate test bridges;
       ``(B) analyze the data obtained under subparagraph (A); and
       ``(C) prepare products to fulfill program objectives and 
     meet future bridge technology needs.''.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $7,750,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 
     502(j) of such title.
       (b) Innovative Bridge Research and Deployment Program.--
       (1) In general.--Section 503(b)(1) of such title is amended 
     to read as follows:
       ``(1) In general.--The Secretary shall establish and carry 
     out a program to promote, demonstrate, evaluate, and document 
     the application of innovative designs, materials, and 
     construction methods in the construction, repair, and 
     rehabilitation of bridges and other highway structures.''.
       (2) Goals.--Section 503(b)(2) of such title is amended to 
     read as follows:
       ``(2) Goals.--The goals of the program shall include--
       ``(A) the development of new, cost-effective, innovative 
     highway bridge applications;
       ``(B) the development of construction techniques to 
     increase safety and reduce construction time and traffic 
     congestion;
       ``(C) the development of engineering design criteria for 
     innovative products, materials, and structural systems for 
     use in highway bridges and structures;
       ``(D) the reduction of maintenance costs and life-cycle 
     costs of bridges, including the costs of new construction, 
     replacement, or rehabilitation of deficient bridges;
       ``(E) the development of highway bridges and structures 
     that will withstand natural disasters;
       ``(F) the documentation and wide dissemination of objective 
     evaluations of the performance and benefits of these 
     innovative designs, materials, and construction methods;
       ``(G) the effective transfer of resulting information and 
     technology; and
       ``(H) the development of improved methods to detect bridge 
     scour and economical bridge foundation designs that will 
     withstand bridge scour.''.
       (3) Funding.--
       (A) In general.--Of the amounts made available by section 
     5101(a)(1) of this Act, $13,100,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 
     503(b) of such title.
       (B) High performance concrete bridge technology research 
     and deployment.--The Secretary shall obligate $4,125,000 of 
     the amount described in subparagraph (A) for each of fiscal 
     years 2006 through 2009 to conduct research and deploy 
     technology related to high-performance concrete bridges.
       (c) High Performing Steel Bridge Research and Technology 
     Transfer.--
       (1) In general.--The Secretary shall carry out a program to 
     demonstrate the application of high-performing steel in the 
     construction and rehabilitation of bridges.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $4,100,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection.
       (d) Steel Bridge Testing.--
       (1) In general.--The Secretary shall carry out a program to 
     test steel bridges using a nondestructive technology that is 
     able to detect growing cracks, including subsurface flaws as 
     small as 0.010 inches in length or depth, in the bridges.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $1,250,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection.
       (3) Federal share.--The Federal share of the cost of 
     activities carried out in accordance with this subsection 
     shall be 80 percent.

     SEC. 5203. TECHNOLOGY DEPLOYMENT.

       (a) Technology Deployment Program.--Section 503(a) of title 
     23, United States Code, is amended--
       (1) in the subsection heading by striking ``Initiatives and 
     Partnerships'';
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Establishment.--The Secretary shall develop and 
     administer a national technology deployment program.'';
       (3) by striking paragraph (7) and inserting the following:
       ``(7) Grants, cooperative agreements, and contracts.--
       ``(A) In general.--Under the program, the Secretary may 
     make grants to, and enter into cooperative agreements and 
     contracts with, States, other Federal agencies, universities 
     and colleges, private sector entities, and nonprofit 
     organizations to pay the Federal share of the cost of 
     research, development, and technology transfer activities 
     concerning innovative materials.
       ``(B) Applications.--To receive a grant under this 
     subsection, an entity described in subparagraph (A) shall 
     submit an application to the Secretary. The application shall 
     be in such form and contain such information as the Secretary 
     may require. The Secretary shall select and approve an 
     application based on whether the project that is the subject 
     of the grant meets the purpose of the program described in 
     paragraph (2).''; and
       (4) by striking paragraph (8) and inserting the following:
       ``(8) Technology and information transfer.--The Secretary 
     shall ensure that the information and technology resulting 
     from research conducted under paragraph (7) is made available 
     to State and local transportation departments and other 
     interested parties as specified by the Secretary.''.
       (b) Innovative Pavement Research and Deployment Program.--
       (1) In general.--Section 503 of such title is further 
     amended by adding at the end the following:
       ``(c) Innovative Pavement Research and Deployment 
     Program.--
       ``(1) In general.--The Secretary shall establish and 
     implement a program to promote, demonstrate, support, and 
     document the application of innovative pavement technologies, 
     practices, performance, and benefits.
       ``(2) Goals.--The goals of the innovative pavement research 
     and deployment program shall include--
       ``(A) the deployment of new, cost-effective, innovative 
     designs, materials, recycled materials (including taconite 
     tailings and foundry sand), and practices to extend pavement 
     life and performance and to improve customer satisfaction;
       ``(B) the reduction of initial costs and life-cycle costs 
     of pavements, including the costs of new construction, 
     replacement, maintenance, and rehabilitation;
       ``(C) the deployment of accelerated construction techniques 
     to increase safety and reduce construction time and traffic 
     disruption and congestion;
       ``(D) the deployment of engineering design criteria and 
     specifications for innovative practices, products, and 
     materials for use in highway pavements;
       ``(E) the deployment of new nondestructive and real-time 
     pavement evaluation technologies and techniques;
       ``(F) the evaluation, refinement, and documentation of the 
     performance and benefits of innovative technologies deployed 
     to improve life, performance, cost effectiveness, safety, and 
     customer satisfaction;
       ``(G) effective technology transfer and information 
     dissemination to accelerate implementation of innovative 
     technologies and to improve life, performance, cost 
     effectiveness, safety, and customer satisfaction; and

[[Page H7399]]

       ``(H) the development of designs and materials to reduce 
     storm water runoff.
       ``(3) Research to improve nhs pavement.--The Secretary 
     shall obligate for each of fiscal years 2006 through 2009 
     from funds made available to carry out this subsection, 
     $4,100,000 to conduct research to improve asphalt pavement, 
     $4,100,000 to conduct research to improve concrete pavement, 
     $4,100,000 to conduct research to improve alternative 
     materials used in highways (including alternative materials 
     used in highway drainage applications), and $2,450,000 to 
     conduct research to improve aggregates used in highways on 
     the National Highway System.''.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $22,625,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 
     503(c) of such title.
       (c) Safety Innovation Deployment Program.--
       (1) In general.--Section 503 of such title is further 
     amended by adding at the end the following:
       ``(d) Safety Innovation Deployment Program.--
       ``(1) In general.--The Secretary shall establish and 
     implement a program to demonstrate the application of 
     innovative technologies in highway safety.
       ``(2) Goals.--The goals of the program shall include--
       ``(A) the deployment and evaluation of safety technologies 
     and innovations at State and local levels; and
       ``(B) the deployment of best practices in training, 
     management, design, and planning.
       ``(3) Grants, cooperative agreements, and contracts.--
       ``(A) In general.--Under the program, the Secretary shall 
     make grants to, and enter into cooperative agreements and 
     contracts with, States, other Federal agencies, universities 
     and colleges, private sector entities, and nonprofit 
     organizations for research, development, and technology 
     transfer for innovative safety technologies.
       ``(B) Applications.--To receive a grant under this 
     subsection, an entity described in subparagraph (A) shall 
     submit to the Secretary an application at such time and 
     containing such information as the Secretary may require. The 
     Secretary shall select and approve an application based on 
     whether the project that is the subject of the application 
     meets the goals of the program described in paragraph (2).
       ``(4) Technology and information transfer.--The Secretary 
     shall take such action as is necessary to ensure that the 
     information and technology resulting from research conducted 
     under paragraph (3) is made available to State and local 
     transportation departments and other interested parties as 
     specified by the Secretary.''.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $12,750,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 
     503(d) of such title.
       (d) Authority to Purchase Promotional Items.--Section 503 
     of such title is further amended by adding at the end the 
     following:
       ``(e) Promotional Authority.--Funds authorized to be 
     appropriated for necessary expenses for administration and 
     operation of the Federal Highway Administration shall be 
     available to purchase promotional items of nominal value for 
     use in the recruitment of individuals and to promote the 
     programs of the Federal Highway Administration.''.
       (e) Demonstration Projects and Studies.--
       (1) Wood composite materials demonstration project.--Of the 
     funds made available by section 5101(a)(1) of this Act, 
     $1,000,000 for each of fiscal years 2006 and 2007 shall be 
     made available for conducting a demonstration at the 
     University of Maine of the durability and potential 
     effectiveness of wood composite materials in multimodal 
     transportation facilities.
       (2) Asphalt reclamation study.--Of the funds made available 
     by section 5101(a)(1) of this Act, $1,500,000 for fiscal year 
     2006 shall be available for asphalt and asphalt-related 
     reclamation research at the South Dakota School of Mines.
       (3) Alkali silica reactivity.--Of the funds made available 
     by section 5101(a)(1) of this Act, $2,450,000 shall be made 
     available by the Secretary for each of fiscal years 2006 
     through 2009 for further development and deployment of 
     techniques to prevent and mitigate alkali silica reactivity.
       (4) Federal share.--The Federal share of the cost of the 
     projects--
       (A) under paragraph (1) shall be 100 percent; and
       (B) under paragraphs (2) and (3) shall be the share 
     applicable under section 120(b) of such title unless 
     otherwise specified or determined by the Secretary.
       (f) Turner-Fairbank Facility.--Of the funds made available 
     by section 5101(a)(1) of this Act, $625,000 shall be 
     available for each of fiscal years 2006 through 2009 to 
     provide for physical demonstrations of the ongoing work at 
     the Turner-Fairbank facility with respect to ultra-high 
     performance concrete with ductility.

     SEC. 5204. TRAINING AND EDUCATION.

       (a) National Highway Institute.--
       (1) Courses.--Section 504(a)(3) of title 23, United States 
     Code, is amended to read as follows:
       ``(3) Courses.--
       ``(A) In general.--The Institute shall--
       ``(i) develop or update existing courses in asset 
     management, including courses that include such components 
     as--

       ``(I) the determination of life-cycle costs;
       ``(II) the valuation of assets;
       ``(III) benefit-to-cost ratio calculations; and
       ``(IV) objective decisionmaking processes for project 
     selection; and

       ``(ii) continually develop courses relating to the 
     application of emerging technologies for--

       ``(I) transportation infrastructure applications and asset 
     management;
       ``(II) intelligent transportation systems;
       ``(III) operations (including security operations);
       ``(IV) the collection and archiving of data;
       ``(V) expediting the planning and development of 
     transportation projects; and
       ``(VI) the intermodal movement of individuals and freight.

       ``(B) Additional courses.--In addition to the courses 
     developed under subparagraph (A), the Institute, in 
     consultation with State transportation departments, 
     metropolitan planning organizations, and the American 
     Association of State Highway and Transportation Officials, 
     may develop courses relating to technology, methods, 
     techniques, engineering, construction, safety, maintenance, 
     environmental mitigation and compliance, regulations, 
     management, inspection, and finance.
       ``(C) Revision of courses offered.--The Institute shall 
     periodically--
       ``(i) review the course inventory of the Institute; and
       ``(ii) revise or cease to offer courses based on course 
     content, applicability, and need.''.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(2) of this Act, $9,600,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 
     504(a) of such title.
       (b) Local Technical Assistance Program.--Section 504(b) of 
     such title is amended to read as follows:
       ``(b) Local Technical Assistance Program.--
       ``(1) Authority.--The Secretary shall carry out a local 
     technical assistance program that will provide access to 
     surface transportation technology to--
       ``(A) highway and transportation agencies in urbanized and 
     rural areas;
       ``(B) contractors that perform work for the agencies; and
       ``(C) infrastructure security staff.
       ``(2) Grants, cooperative agreements, and contracts.--The 
     Secretary may make grants and enter into cooperative 
     agreements and contracts to provide education and training, 
     technical assistance, and related support services to--
       ``(A) assist rural, local transportation agencies and 
     tribal governments, and the consultants and construction 
     personnel working for the agencies and governments, to--
       ``(i) develop and expand expertise in road and 
     transportation areas (including pavement, bridge, concrete 
     structures, intermodal connections, safety management 
     systems, intelligent transportation systems, incident 
     response, operations, and traffic safety countermeasures);
       ``(ii) improve roads and bridges;
       ``(iii) enhance--

       ``(I) programs for the movement of passengers and freight; 
     and
       ``(II) intergovernmental transportation planning and 
     project selection; and

       ``(iv) deal effectively with special transportation-related 
     problems by preparing and providing training packages, 
     manuals, guidelines, and technical resource materials;
       ``(B) develop technical assistance for tourism and 
     recreational travel;
       ``(C) identify, package, and deliver transportation 
     technology and traffic safety information to local 
     jurisdictions to assist urban transportation agencies in 
     developing and expanding their ability to deal effectively 
     with transportation-related problems (particularly the 
     promotion of regional cooperation);
       ``(D) operate, in cooperation with State transportation 
     departments and universities--
       ``(i) local technical assistance program centers designated 
     to provide transportation technology transfer services to 
     rural areas and to urbanized areas; and
       ``(ii) local technical assistance program centers 
     designated to provide transportation technical assistance to 
     tribal governments; and
       ``(E) allow local transportation agencies and tribal 
     governments, in cooperation with the private sector, to 
     enhance new technology implementation.
       ``(3) Federal share.--The Federal share of the cost of 
     activities carried out by the tribal technical assistance 
     centers under paragraph (2)(D)(ii) shall be 100 percent. ''.
       (c) Funding.--Of the funds made available by section 
     5101(a)(2) of this Act, $11,100,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 
     504(b) of such title.
       (d) Garrett A. Morgan Technology and Transportation 
     Education Program.--
       (1) In general.--Section 504 of such title, is further 
     amended by adding at the end the following new subsection:
       ``(d) Garrett A. Morgan Technology and Transportation 
     Education Program.--
       ``(1) In general.--The Secretary shall establish the 
     Garrett A. Morgan Technology and Transportation Education 
     Program to improve the preparation of students, particularly 
     women and minorities, in science, technology, engineering, 
     and mathematics through curriculum development and other 
     activities related to transportation.
       ``(2) Authorized activities.--The Secretary shall award 
     grants under this subsection on the basis of competitive peer 
     review. Grants awarded under this subsection may be used for 
     enhancing science, technology, engineering, and mathematics 
     at the elementary and secondary school level through such 
     means as--
       ``(A) internships that offer students experience in the 
     transportation field;
       ``(B) programs that allow students to spend time observing 
     scientists and engineers in the transportation field; and
       ``(C) developing relevant curriculum that uses examples and 
     problems related to transportation.

[[Page H7400]]

       ``(3) Application and review procedures.--
       ``(A) In general.--An entity described in subparagraph (C) 
     seeking funding under this subsection shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require. 
     Such application, at a minimum, shall include a description 
     of how the funds will be used to serve the purposes described 
     in paragraph (2).
       ``(B) Priority.--In making awards under this subsection, 
     the Secretary shall give priority to applicants that will 
     encourage the participation of women and minorities.
       ``(C) Eligibility.--Local educational agencies and State 
     educational agencies, which may enter into a partnership 
     agreement with institutions of higher education, businesses, 
     or other entities, shall be eligible to apply for grants 
     under this subsection.
       ``(4) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Institution of higher education.--The term 
     `institution of higher education' has the meaning given that 
     term in section 101 of the Higher Education Act of 1965 (20 
     U.S.C. 1001).
       ``(B) Local educational agency.--The term `local 
     educational agency' has the meaning given that term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801).
       ``(C) State educational agency.--The term `State 
     educational agency' has the meaning given that term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801).''.
       (2) Funding.--Of the amounts made available by section 
     5101(a)(2) of this Act, $1,250,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 
     504(d) of such title.
       (3) Federal share.--The Federal share of the cost of 
     activities carried out in accordance with this section 504(d) 
     of such title shall be 100 percent.
       (e) Surface Transportation Workforce Development, Training, 
     and Education.--Section 504 of such title is further amended 
     by adding at the end the following:
       ``(e) Surface Transportation Workforce Development, 
     Training, and Education.--
       ``(1) Funding.--Subject to project approval by the 
     Secretary, a State may obligate funds apportioned to the 
     State under sections 104(b)(1), 104(b)(2), 104(b)(3), 
     104(b)(4), and 144(e) for surface transportation workforce 
     development, training, and education, including--
       ``(A) tuition and direct educational expenses, excluding 
     salaries, in connection with the education and training of 
     employees of State and local transportation agencies;
       ``(B) employee professional development;
       ``(C) student internships;
       ``(D) university or community college support; and
       ``(E) education activities, including outreach, to develop 
     interest and promote participation in surface transportation 
     careers.
       ``(2) Federal share.--The Federal share of the cost of 
     activities carried out in accordance with this subsection 
     shall be 100 percent.
       ``(3) Surface transportation workforce development, 
     training, and education defined.--In this subsection, the 
     term `surface transportation workforce development, training, 
     and education' means activities associated with surface 
     transportation career awareness, student transportation 
     career preparation, and training and professional development 
     for surface transportation workers, including activities for 
     women and minorities.
       ``(f) Transportation Education Development Pilot Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     program to make grants to institutions of higher education 
     that, in partnership with industry or State departments of 
     transportation, will develop, test, and revise new curricula 
     and education programs to train individuals at all levels of 
     the transportation workforce.
       ``(2) Selection of grant recipients.--In selecting 
     applications for awards under this subsection, the Secretary 
     shall consider--
       ``(A) the degree to which the new curricula or education 
     program meets the specific needs of a segment of the 
     transportation industry, States, or regions;
       ``(B) providing for practical experience and on-the-job 
     training;
       ``(C) proposals oriented toward practitioners in the field 
     rather than the support and growth of the research community;
       ``(D) the degree to which the new curricula or program will 
     provide training in areas other than engineering, such as 
     business administration, economics, information technology, 
     environmental science, and law;
       ``(E) programs or curricula in nontraditional departments 
     that train professionals for work in the transportation 
     field, such as materials, information technology, 
     environmental science, urban planning, and industrial 
     technology; and
       ``(F) the commitment of industry or a State's department of 
     transportation to the program.
       ``(3) Limitations.--The amount of a grant under this 
     subsection shall not exceed $300,000 per year. After a 
     recipient has received 3 years of Federal funding under this 
     subsection, Federal funding may equal not more than 75 
     percent of a grantee's program costs.''.
       (f) Funding.--
       (1) In general.--Of the amounts made available by section 
     5101(a)(2) of this Act, $1,875,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 
     504(f) of such title.
       (2) Federal share.--The Federal share of the cost of 
     activities carried out in accordance with section 504(f) of 
     such title shall be 100 percent.
       (g) Transportation Technology Innovations.--
       (1) Fundamental properties of asphalts and modified 
     asphalts.--The Secretary shall continue to carry out section 
     5117(b)(5) of the Transportation Equity Act for the 21st 
     Century (112 Stat. 450).
       (2) Transportation, economic, and land use system.--The 
     Secretary shall continue to carry out section 5117(b)(7) of 
     the Transportation Equity Act for the 21st Century (112 Stat. 
     450).
       (3) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, for each of fiscal years 2005 through 
     2009 $4,200,000 shall be available to carry out paragraph (1) 
     and $1,000,000 shall be available to carry out paragraph (2).
       (h) Freight Planning Capacity Building.--
       (1) In general.--Section 504 of title 23, United States 
     Code, is further amended by adding at the end the following:
       ``(g) Freight Capacity Building Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     freight planning capacity building initiative to support 
     enhancements in freight transportation planning in order to--
       ``(A) better target investments in freight transportation 
     systems to maintain efficiency and productivity; and
       ``(B) strengthen the decisionmaking capacity of State 
     transportation departments and local transportation agencies 
     with respect to freight transportation planning and systems.
       ``(2) Agreements.--The Secretary shall enter into 
     agreements to support and carry out administrative and 
     management activities relating to the governance of the 
     freight planning capacity initiative.
       ``(3) Stakeholder involvement.--In carrying out this 
     section, the Secretary shall consult with the Association of 
     Metropolitan Planning Organizations, the American Association 
     of State Highway and Transportation Officials, and other 
     freight planning stakeholders, including the other Federal 
     agencies, State transportation departments, local 
     governments, nonprofit entities, academia, and the private 
     sector.
       ``(4) Eligible activities.--The freight planning capacity 
     building initiative shall include research, training, and 
     education in the following areas:
       ``(A) The identification and dissemination of best 
     practices in freight transportation.
       ``(B) Providing opportunities for freight transportation 
     staff to engage in peer exchange.
       ``(C) Refinement of data and analysis tools used in 
     conjunction with assessing freight transportation needs.
       ``(D) Technical assistance to State transportation 
     departments and local transportation agencies reorganizing to 
     address freight transportation issues.
       ``(E) Facilitating relationship building between 
     governmental and private entities involved in freight 
     transportation.
       ``(F) Identifying ways to target the capacity of State 
     transportation departments and local transportation agencies 
     to address freight considerations in operations, security, 
     asset management, and environmental excellence in connection 
     with long-range multimodal transportation planning and 
     project implementation.
       ``(5) Federal share.--The Federal share of the cost of an 
     activity carried out under this section shall be up to 100 
     percent, and such funds shall remain available until 
     expended.
       ``(6) Use of funds.--Funds made available for the program 
     established under this subsection may be used for research, 
     program development, information collection and 
     dissemination, and technical assistance. The Secretary may 
     use such funds independently or make grants or to and enter 
     into contracts and cooperative agreements with a Federal 
     agency, State agency, local agency, federally recognized 
     Indian tribal government or tribal consortium, authority, 
     association, nonprofit or for-profit corporation, or 
     institution of higher education, to carry out the purposes of 
     this subsection.''.
       (2) Funding.--Of the amounts made available under section 
     5101(a)(2) of this Act, $875,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 
     504(g) of such title.
       (i) Eisenhower Transportation Fellowship Program.--Of the 
     amounts made available by section 5101(a)(2) of this Act, 
     $2,200,000 for each of fiscal years 2005 through 2009 shall 
     be available to carry out section 504(c)(2) of such title.

     SEC. 5205. STATE PLANNING AND RESEARCH.

       Section 505 of title 23, United States Code, is amended--
       (1) in subsection (a) by adding at the end the following--
       ``(7) The conduct of activities relating to the planning of 
     real-time monitoring elements.''; and
       (2) in subsection (d) by striking ``for the same'' and all 
     that follows through the period and inserting the following: 
     ``for the period described in section 118(b)(2).''.

     SEC. 5206. INTERNATIONAL HIGHWAY TRANSPORTATION OUTREACH 
                   PROGRAM.

       (a) In General.--Section 506 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 506. International highway transportation outreach 
       program

       ``(a) Establishment.--The Secretary may establish an 
     international highway transportation outreach program--
       ``(1) to inform the United States highway community of 
     technological innovations in foreign countries that could 
     significantly improve highway transportation in the United 
     States;
       ``(2) to promote United States highway transportation 
     expertise, goods, and services in foreign countries; and
       ``(3) to increase transfers of United States highway 
     transportation technology to foreign countries.
       ``(b) Activities.--Activities carried out under the program 
     may include--

[[Page H7401]]

       ``(1) the development, monitoring, assessment, and 
     dissemination in the United States of information about 
     highway transportation innovations in foreign countries that 
     could significantly improve highway transportation in the 
     United States;
       ``(2) research, development, demonstration, training, and 
     other forms of technology transfer and exchange;
       ``(3) the provision to foreign countries, through 
     participation in trade shows, seminars, expositions, and 
     other similar activities, of information relating to the 
     technical quality of United States highway transportation 
     goods and services;
       ``(4) the offering of technical services of the Federal 
     Highway Administration that cannot be readily obtained from 
     private sector firms in the United States for incorporation 
     into the proposals of those firms undertaking highway 
     transportation projects outside the United States, if the 
     costs of the technical services will be recovered under the 
     terms of the project;
       ``(5) the conduct of studies to assess the need for, or 
     feasibility of, highway transportation improvements in 
     foreign countries; and
       ``(6) the gathering and dissemination of information on 
     foreign transportation markets and industries.
       ``(c) Cooperation.--The Secretary may carry out this 
     section in cooperation with any appropriate--
       ``(1) Federal, State, or local agency;
       ``(2) authority, association, institution, or organization;
       ``(3) for-profit or nonprofit corporation;
       ``(4) national or international entity;
       ``(5) foreign country; or
       ``(6) person.
       ``(d) Funds.--
       ``(1) Contributions.--Funds available to carry out this 
     section shall include funds deposited by any cooperating 
     organization or person into a special account of the Treasury 
     established for this purpose.
       ``(2) Eligible uses of funds.--The funds deposited into the 
     account, and other funds available to carry out this section, 
     shall be available to cover the cost of any activity eligible 
     under this section, including the cost of--
       ``(A) promotional materials;
       ``(B) travel;
       ``(C) reception and representation expenses; and
       ``(D) salaries and benefits.
       ``(3) Reimbursements for salaries and benefits.--
     Reimbursements for salaries and benefits of Department 
     employees providing services under this section shall be 
     credited to the account.
       ``(e) Report.--For each fiscal year, the Secretary shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report that 
     describes the destinations and individual trip costs of 
     international travel conducted in carrying out activities 
     described in this section.''.
       (b) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $300,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 506 
     of such title.

     SEC. 5207. SURFACE TRANSPORTATION ENVIRONMENT AND PLANNING 
                   COOPERATIVE RESEARCH PROGRAM.

       (a) In General.--Section 507 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 507. Surface transportation-environmental cooperative 
       research program

       ``(a) In General.--The Secretary shall establish and carry 
     out a surface transportation-environmental cooperative 
     research program.
       ``(b) Contents.--The program carried out under this section 
     may include research--
       ``(1) to develop more accurate models for evaluating 
     transportation control measures and transportation system 
     designs that are appropriate for use by State and local 
     governments (including metropolitan planning organizations) 
     in designing implementation plans to meet Federal, State, and 
     local environmental requirements;
       ``(2) to improve understanding of the factors that 
     contribute to the demand for transportation;
       ``(3) to develop indicators of economic, social, and 
     environmental performance of transportation systems to 
     facilitate analysis of potential alternatives;
       ``(4) to meet additional priorities as determined by the 
     Secretary in the strategic planning process under section 
     508; and
       ``(5) to refine, through the conduct of workshops, 
     symposia, and panels, and in consultation with stakeholders 
     (including the Department of Energy, the Environmental 
     Protection Agency, and other appropriate Federal and State 
     agencies and associations) the scope and research emphases of 
     the program.
       ``(c) Program Administration.--The Secretary shall--
       ``(1) administer the program established under this 
     section; and
       ``(2) ensure, to the maximum extent practicable, that--
       ``(A) the best projects and researchers are selected to 
     conduct research in the priority areas described in 
     subsection (b)--
       ``(i) on the basis of merit of each submitted proposal; and
       ``(ii) through the use of open solicitations and selection 
     by a panel of appropriate experts;
       ``(B) a qualified, permanent core staff with the ability 
     and expertise to manage a large multiyear budget is used;
       ``(C) the stakeholders are involved in the governance of 
     the program, at the executive, overall program, and technical 
     levels, through the use of expert panels and committees; and
       ``(D) there is no duplication of research effort between 
     the program established under this section and the new 
     strategic highway research program established under section 
     510.
       ``(d) National Academy of Sciences.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     National Academy of Sciences to carry out such activities 
     relating to the research, technology, and technology transfer 
     activities described in subsections (b) and (c) as the 
     Secretary determines to be appropriate.''.
       (b) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $16,875,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 507 
     of such title.
       (c) Conforming Amendment.--The analysis for chapter 5 of 
     such title is amended by striking the item relating to 
     section 507 and inserting the following:

       ``507. Surface transportation environment and planning 
           cooperative research program.''.

     SEC. 5208. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC 
                   PLANNING.

       (a) In General.--Section 508 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 508. Transportation research and development strategic 
       planning

       ``(a) In General.--
       ``(1) Development.--Not later than 1 year after the date of 
     enactment of the SAFETEA-LU, the Secretary shall develop a 5-
     year transportation research and development strategic plan 
     to guide Federal transportation research and development 
     activities. This plan shall be consistent with section 306 of 
     title 5, sections 1115 and 1116 of title 31, and any other 
     research and development plan within the Department of 
     Transportation.
       ``(2) Contents.--The strategic plan developed under 
     paragraph (1) shall--
       ``(A) describe the primary purposes of the transportation 
     research and development program, which shall include, at a 
     minimum--
       ``(i) reducing congestion and improving mobility;
       ``(ii) promoting safety;
       ``(iii) promoting security;
       ``(iv) protecting and enhancing the environment;
       ``(v) preserving the existing transportation system; and
       ``(vi) improving the durability and extending the life of 
     transportation infrastructure;
       ``(B) for each purpose, list the primary research and 
     development topics that the Department intends to pursue to 
     accomplish that purpose, which may include the fundamental 
     research in the physical and natural sciences, applied 
     research, technology development, and social science research 
     intended for each topic; and
       ``(C) for each research and development topic, describe--
       ``(i) the anticipated annual funding levels for the period 
     covered by the strategic plan; and
       ``(ii) the additional information the Department expects to 
     gain at the end of the period covered by the strategic plan 
     as a result of the research and development in that topic 
     area.
       ``(3) Considerations.--In developing the strategic plan, 
     the Secretary shall ensure that the plan--
       ``(A) reflects input from a wide range of stakeholders;
       ``(B) includes and integrates the research and development 
     programs of all the Department's operating administrations, 
     including aviation, transit, rail, and maritime; and
       ``(C) takes into account how research and development by 
     other Federal, State, private sector, and nonprofit 
     institutions contributes to the achievement of the purposes 
     identified under paragraph (2)(A), and avoids unnecessary 
     duplication with these efforts.
       ``(4) Performance plans and reports.--In reports submitted 
     under sections 1115 and 1116 of title 31, the Secretary shall 
     include--
       ``(A) a summary of the Federal transportation research and 
     development activities for the previous fiscal year in each 
     topic area;
       ``(B) the amount of funding spent in each topic area;
       ``(C) a description of the extent to which the research and 
     development is meeting the expectations set forth in 
     paragraph (2)(C)(ii); and
       ``(D) any amendments to the strategic plan.
       ``(b) Annual Report.--The Secretary shall submit to 
     appropriate committees of Congress an annual report, in 
     conjunction with the President's annual budget request as set 
     forth in section 1105 of title 31, describing the amount 
     spent in the last completed fiscal year on transportation 
     research and development and the amount proposed in the 
     current budget for transportation research and development.
       ``(c) National Research Council Review.--The Secretary 
     shall enter into an agreement for the review by the National 
     Research Council of the details of each--
       ``(1) strategic plan under this section;
       ``(2) performance plan required under section 1115 of title 
     31; and
       ``(3) program performance report required under section 
     1116 of title 31, with respect to transportation research and 
     development.''.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     such title is amended by striking the item relating to 
     section 508 and inserting the following:

``508. Transportation research and development strategic planning.''.

     SEC. 5209. NATIONAL COOPERATIVE FREIGHT TRANSPORTATION 
                   RESEARCH PROGRAM.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 509. National cooperative freight transportation 
       research program

       ``(a) Establishment.--The Secretary shall establish and 
     support a national cooperative freight transportation 
     research program.

[[Page H7402]]

       ``(b) Agreement.--The Secretary shall enter into an 
     agreement with the National Academy of Sciences to support 
     and carry out administrative and management activities 
     relating to the governance of the national cooperative 
     freight transportation research program.
       ``(c) Advisory Committee.--The National Academy of Sciences 
     shall select an advisory committee consisting of a 
     representative cross-section of freight stakeholders, 
     including the Department of Transportation, other Federal 
     agencies, State transportation departments, local 
     governments, nonprofit entities, academia, and the private 
     sector.
       ``(d) Governance.--The national cooperative freight 
     transportation research program established under this 
     section shall include the following administrative and 
     management elements:
       ``(1) National research agenda.--The advisory committee, in 
     consultation with interested parties, shall recommend a 
     national research agenda for the program. The agenda shall 
     include a multiyear strategic plan.
       ``(2) Involvement.--Interested parties may--
       ``(A) submit research proposals to the advisory committee;
       ``(B) participate in merit reviews of research proposals 
     and peer reviews of research products; and
       ``(C) receive research results.
       ``(3) Open competition and peer review of research 
     proposals.--The National Academy of Sciences may award 
     research contracts and grants under the program through open 
     competition and merit review conducted on a regular basis.
       ``(4) Evaluation of research.--
       ``(A) Peer review.--Research contracts and grants under the 
     program may allow peer review of the research results.
       ``(B) Programmatic evaluations.--The National Academy of 
     Sciences may conduct periodic programmatic evaluations on a 
     regular basis of research contracts and grants.
       ``(5) Dissemination of research findings.--The National 
     Academy of Sciences shall disseminate research findings to 
     researchers, practitioners, and decisionmakers, through 
     conferences and seminars, field demonstrations, workshops, 
     training programs, presentations, testimony to government 
     officials, the World Wide Web, publications for the general 
     public, and other appropriate means.
       ``(e) Contents.--The national research agenda required 
     under subsection (d)(1) shall include research in the 
     following areas:
       ``(1) Techniques for estimating and quantifying public 
     benefits derived from freight transportation projects.
       ``(2) Alternative approaches to calculating the 
     contribution of truck and rail traffic to congestion on 
     specific highway segments.
       ``(3) The feasibility of consolidating origins and 
     destinations for freight movement.
       ``(4) Methods for incorporating estimates of international 
     trade into landside transportation planning.
       ``(5) The use of technology applications to increase 
     capacity of highway lanes dedicated to truck-only traffic.
       ``(6) Development of physical and policy alternatives for 
     separating car and truck traffic.
       ``(7) Ways to synchronize infrastructure improvements with 
     freight transportation demand.
       ``(8) The effect of changing patterns of freight movement 
     on transportation planning decisions relating to rest areas.
       ``(9) Other research areas to identify and address emerging 
     and future research needs related to freight transportation 
     by all modes.
       ``(f) Funding.--
       ``(1) Federal share.--The Federal share of the cost of an 
     activity carried out under this section shall be up to 100 
     percent.
       ``(2) Use of non-federal funds.--In addition to using funds 
     authorized for this section, the National Academy of Sciences 
     may seek and accept additional funding sources from public 
     and private entities capable of accepting funding from the 
     Department of Transportation, States, local governments, 
     nonprofit foundations, and the private sector.
       ``(3) Period of availability.--Amounts made available to 
     carry out this section shall remain available until 
     expended.''.
       (b) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $3,750,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out section 509 
     of such title.
       (c) Conforming Amendment.--The analysis for such chapter is 
     further amended by adding at the end the following:

``509. National cooperative freight transportation research program.''.

     SEC. 5210. FUTURE STRATEGIC HIGHWAY RESEARCH PROGRAM.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is further amended by adding at the end the following:

     ``Sec. 510. Future strategic highway research program

       ``(a) Establishment.--The Secretary, in consultation with 
     the American Association of State Highway and Transportation 
     Officials, shall establish and carry out, acting through the 
     National Research Council of the National Academy of 
     Sciences, the future strategic highway research program.
       ``(b) Cooperative Agreements.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     American Association of State Highway and Transportation 
     Officials and the National Academy of Sciences to carry out 
     such activities under this section as the Secretary 
     determines are appropriate.
       ``(c) Program Priorities.--
       ``(1) Program elements.--The program established under this 
     section shall be based on the National Research Council 
     Special Report 260, entitled `Strategic Highway Research: 
     Saving Lives, Reducing Congestion, Improving Quality of Life' 
     and the results of the detailed planning work subsequently 
     carried out in 2002 and 2003 to identify the research areas 
     through National Cooperative Research Program Project 20-58. 
     The research program shall include an analysis of the 
     following:
       ``(A) Renewal of aging highway infrastructure with minimal 
     impact to users of the facilities.
       ``(B) Driving behavior and likely crash causal factors to 
     support improved countermeasures.
       ``(C) Reducing highway congestion due to nonrecurring 
     congestion.
       ``(D) Planning and designing new road capacity to meet 
     mobility, economic, environmental, and community needs.
       ``(2) Dissemination of results.--The research results of 
     the program, expressed in terms of technologies, 
     methodologies, and other appropriate categorizations, shall 
     be disseminated to practicing engineers for their use, as 
     soon as practicable.
       ``(d) Program Administration.--In carrying out the program 
     under this section, the National Research Council shall 
     ensure, to the maximum extent practicable, that--
       ``(1) projects and researchers are selected to conduct 
     research for the program on the basis of merit and open 
     solicitation of proposals and review by panels of appropriate 
     experts;
       ``(2) State department of transportation officials and 
     other stakeholders, as appropriate, are involved in the 
     governance of the program at the overall program level and 
     technical level through the use of expert panels and 
     committees;
       ``(3) the Council acquires a qualified, permanent core 
     staff with the ability and expertise to manage the program 
     and multiyear budget; and
       ``(4) there is no duplication of research effort between 
     the program and any other research effort of the Department.
       ``(e) Report on Implementation of Results.--
       ``(1) Report.--The Transportation Research Board of the 
     National Research Council shall complete a report on the 
     strategies and administrative structure to be used for 
     implementation of the results of the future strategic highway 
     research program.
       ``(2) Components.--The report under paragraph (1) shall 
     include with respect to the program--
       ``(A) an identification of the most promising results of 
     research under the program (including the persons most likely 
     to use the results);
       ``(B) a discussion of potential incentives for, impediments 
     to, and methods of, implementing those results;
       ``(C) an estimate of costs of implementation of those 
     results; and
       ``(D) recommendations on methods by which implementation of 
     those results should be conducted, coordinated, and supported 
     in future years, including a discussion of the administrative 
     structure and organization best suited to carry out those 
     recommendations.
       ``(3) Consultation.--In developing the report, the 
     Transportation Research Board shall consult with a wide 
     variety of stakeholders, including--
       ``(A) the Federal Highway Administration;
       ``(B) the National Highway Traffic Safety Administration; 
     and
       ``(C) the American Association of State Highway and 
     Transportation Officials.
       ``(4) Submission.--Not later than February 1, 2009, the 
     report shall be submitted to the Committee on Environment and 
     Public Works of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives.
       ``(f) Funding.--
       ``(1) Federal share.--The Federal share of the cost of an 
     activity carried out using amounts made available under a 
     grant or cooperative agreement under this section shall be 
     100 percent, and such funds shall remain available until 
     expended.
       ``(2) Advance payments.--The Secretary may make advance 
     payments as necessary to carry out the program under this 
     section.
       ``(g) Limitation of Remedies.--
       ``(1) Same remedy as if united states.--The remedy against 
     the United States provided by sections 1346(b) and 2672 of 
     title 28 for injury, loss of property, personal injury, or 
     death shall apply to any claim against the National Academy 
     of Sciences for money damages for injury, loss of property, 
     personal injury, or death caused by any negligent or wrongful 
     act or omission by employees and individuals described in 
     paragraph (3) arising from activities conducted under or in 
     connection with this section. Any such claim shall be subject 
     to the limitations and exceptions which would be applicable 
     to such claim if such claim were against the United States. 
     With respect to any such claim, the Secretary shall be 
     treated as the head of the appropriate Federal agency for 
     purposes of sections 2672 and 2675 of title 28.
       ``(2) Exclusiveness of remedy.--The remedy referred to in 
     paragraph (1) shall be exclusive of any other civil action or 
     proceeding for the purpose of determining liability arising 
     from any such act or omission without regard to when the act 
     or omission occurred.
       ``(3) Treatment.--Employees of the National Academy of 
     Sciences and other individuals appointed by the president of 
     the National Academy of Sciences and acting on its behalf in 
     connection with activities carried out under this section 
     shall be treated as if they are employees of the Federal 
     Government under section 2671 of title 28 for purposes of a 
     civil action or proceeding with respect to a claim described 
     in paragraph (1). The civil action or proceeding shall 
     proceed in the same manner as any proceeding under chapter 
     171 of title 28 or action against the United States filed 
     pursuant to section 1346(b) of title 28 and shall be subject 
     to the limitations and exceptions applicable to such a 
     proceeding or action.

[[Page H7403]]

       ``(4) Sources of payments.--Payment of any award, 
     compromise, or settlement of a civil action or proceeding 
     with respect to a claim described in paragraph (1) shall be 
     paid first out of insurance maintained by the National 
     Academy of Sciences, second from funds made available to 
     carry out this section, and then from sums made available 
     under section 1304 of title 31. For purposes of such section, 
     such an award, compromise, or settlement shall be deemed to 
     be a judgment, award, or settlement payable under section 
     2414 or 2672 of title 28. The Secretary may establish a 
     reserve of funds to carry out this section for making 
     payments under this paragraph.''.
       (b) Programmatic Evaluations.--Not later than 3 years after 
     the first research and development project grants, 
     cooperative agreements, or contracts are awarded under 
     section 510 of title 23, United States Code, the Comptroller 
     General shall review the program under such section and 
     recommend improvements to the program. The review shall 
     assess the degree to which projects funded under such section 
     have addressed the research and development topics identified 
     in the Transportation Research Board Special Report 260, 
     including identifying those topics that have not yet been 
     addressed.
       (c) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $51,250,000 for each of fiscal years 
     2006 through 2009, shall be available to carry out section 
     510 of such title.
       (d) Conforming Amendment.--The analysis for chapter 5 of 
     such title is further amended by adding at the end the 
     following:

``510. Future strategic highway research program.''.

     SEC. 5211. MULTISTATE CORRIDOR OPERATIONS AND MANAGEMENT.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is further amended by adding at the end the following:

     ``Sec. 511. Multistate corridor operations and management

       ``(a) In General.--The Secretary shall encourage multistate 
     cooperative agreements, coalitions, or other arrangements to 
     promote regional cooperation, planning, and shared project 
     implementation for programs and projects to improve 
     transportation system management and operations.
       ``(b) Interstate Route 95 Corridor Coalition Transportation 
     Systems Management and Operations.--The Secretary shall make 
     grants under this subsection to States to continue 
     intelligent transportation system management and operations 
     in the Interstate Route 95 corridor coalition region 
     initiated under the Intermodal Surface Transportation 
     Efficiency Act of 1991 (Public Law 102-240).''.
       (b) Funding.--Of the amounts made available under section 
     5101(a)(5) of this Act $7,000,000 for each of fiscal years 
     2005 through 2009 shall be available to carry out section 511 
     of such title.
       (c) Conforming Amendment.--The analysis for such chapter is 
     further amended by adding at the end the following:

``511. Multistate corridor operations and management.''.
         Subtitle C--Intelligent Transportation System Research

     SEC. 5301. NATIONAL ITS PROGRAM PLAN.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is further amended by adding at the end the following:

     ``Sec. 512. National ITS program plan

       ``(a) In General.--
       ``(1) Updates.--Not later than 1 year after the date of 
     enactment of the SAFETEA-LU, the Secretary, in consultation 
     with interested stakeholders (including State transportation 
     departments) shall develop a 5-year National Intelligent 
     Transportation System (in this section referred to as `ITS') 
     program plan.
       ``(2) Scope.--The National ITS program plan shall--
       ``(A) specify the goals, objectives, and milestones for the 
     research and deployment of intelligent transportation systems 
     in the contexts of--
       ``(i) major metropolitan areas;
       ``(ii) smaller metropolitan and rural areas; and
       ``(iii) commercial vehicle operations;
       ``(B) specify the manner in which specific programs and 
     projects will achieve the goals, objectives, and milestones 
     referred to in subparagraph (A), including consideration of a 
     5-year timeframe for the goals and objectives;
       ``(C) identify activities that provide for the dynamic 
     development, testing, and necessary revision of standards and 
     protocols to promote and ensure interoperability in the 
     implementation of intelligent transportation system 
     technologies, including actions taken to establish standards; 
     and
       ``(D) establish a cooperative process with State and local 
     governments for--
       ``(i) determining desired surface transportation system 
     performance levels; and
       ``(ii) developing plans for accelerating the incorporation 
     of specific intelligent transportation system capabilities 
     into surface transportation systems.
       ``(b) Reporting.--The National ITS program plan shall be 
     submitted and biennially updated as part of the 
     transportation research and development strategic plan 
     developed under section 508.''.
       (b) Conforming Amendment.--The analysis for such chapter is 
     further amended by adding at the end the following:

``512. National ITS Program Plan.''.

     SEC. 5302. USE OF FUNDS.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is further amended by adding at the end the following:

     ``Sec. 513. Use of funds for ITS activities

       ``(a) In General.--For each fiscal year, not more than 
     $250,000 of the funds made available to carry out this 
     subtitle C of title V of the SAFETEA-LU shall be used for 
     intelligent transportation system outreach, public relations, 
     displays, tours, and brochures.
       ``(b) Applicability.--Subsection (a) shall not apply to 
     intelligent transportation system training, scholarships, or 
     the publication or distribution of research findings, 
     technical guidance, or similar documents.''.
       (b) Conforming Amendment.--The analysis for such chapter is 
     further amended by adding at the end the following:

``513. Use of funds for ITS activities.''.

     SEC. 5303. GOALS AND PURPOSES.

       (a) Goals.--The goals of the intelligent transportation 
     system program include--
       (1) enhancement of surface transportation efficiency and 
     facilitation of intermodalism and international trade to 
     enable existing facilities to meet a significant portion of 
     future transportation needs, including public access to 
     employment, goods, and services and to reduce regulatory, 
     financial, and other transaction costs to public agencies and 
     system users;
       (2) achievement of national transportation safety goals, 
     including the enhancement of safe operation of motor vehicles 
     and nonmotorized vehicles and improved emergency response to 
     a crash, with particular emphasis on decreasing the number 
     and severity of collisions;
       (3) protection and enhancement of the natural environment 
     and communities affected by surface transportation, with 
     particular emphasis on assisting State and local governments 
     to achieve national environmental goals;
       (4) accommodation of the needs of all users of surface 
     transportation systems, including operators of commercial 
     motor vehicles, passenger motor vehicles, motorcycles, 
     bicycles and pedestrians, including individuals with 
     disabilities; and
       (5) improvement of the Nation's ability to respond to 
     security-related or other manmade emergencies and natural 
     disasters and enhancement of national defense mobility.
       (b) Purposes.--The Secretary shall implement activities 
     under the intelligent system transportation program to, at a 
     minimum--
       (1) expedite, in both metropolitan and rural areas, 
     deployment and integration of intelligent transportation 
     systems for consumers of passenger and freight 
     transportation;
       (2) ensure that Federal, State, and local transportation 
     officials have adequate knowledge of intelligent 
     transportation systems for consideration in the 
     transportation planning process;
       (3) improve regional cooperation and operations planning 
     for effective intelligent transportation system deployment;
       (4) promote the innovative use of private resources;
       (5) facilitate, in cooperation with the motor vehicle 
     industry, the introduction of vehicle-based safety enhancing 
     systems;
       (6) support the application of intelligent transportation 
     systems that increase the safety and efficiency of commercial 
     motor vehicle operations;
       (7) develop a workforce capable of developing, operating, 
     and maintaining intelligent transportation systems; and
       (8) provide continuing support for operations and 
     maintenance of intelligent transportation systems.

     SEC. 5304. INFRASTRUCTURE DEVELOPMENT.

       Funds made available to carry out this subtitle for 
     operational tests--
       (1) shall be used primarily for the development of 
     intelligent transportation system infrastructure; and
       (2) to the maximum extent practicable, shall not be used 
     for the construction of physical highway and public 
     transportation infrastructure unless the construction is 
     incidental and critically necessary to the implementation of 
     an intelligent transportation system project.

     SEC. 5305. GENERAL AUTHORITIES AND REQUIREMENTS.

       (a) Scope.--Subject to the provisions of this subtitle, the 
     Secretary shall conduct an ongoing intelligent transportation 
     system program to research, develop, and operationally test 
     intelligent transportation systems and to provide technical 
     assistance in the nationwide application of those systems as 
     a component of the surface transportation systems of the 
     United States.
       (b) Policy.--Intelligent transportation system research 
     projects and operational tests funded pursuant to this 
     subtitle shall encourage and not displace public-private 
     partnerships or private sector investment in such tests and 
     projects.
       (c) Cooperation With Governmental, Private, and Educational 
     Entities.--The Secretary shall carry out the intelligent 
     transportation system program in cooperation with State and 
     local governments and other public entities, the private 
     sector firms of the United States, the Federal laboratories, 
     and colleges and universities, including historically Black 
     colleges and universities and other minority institutions of 
     higher education.
       (d) Consultation With Federal Officials.--In carrying out 
     the intelligent transportation system program, the Secretary 
     shall consult with the heads of other Federal departments and 
     agencies, as appropriate.
       (e) Technical Assistance, Training, and Information.--The 
     Secretary may provide technical assistance, training, and 
     information to State and local governments seeking to 
     implement, operate, maintain, or evaluate intelligent 
     transportation system technologies and services.
       (f) Transportation Planning.--The Secretary may provide 
     funding to support adequate consideration of transportation 
     systems management and operations, including intelligent 
     transportation systems, within metropolitan and statewide 
     transportation planning processes.

[[Page H7404]]

       (g) Information Clearinghouse.--
       (1) In general.--The Secretary shall--
       (A) maintain a repository for technical and safety data 
     collected as a result of federally sponsored projects carried 
     out under this subtitle (including the amendments made by 
     this subtitle); and
       (B) make, on request, that information (except for 
     proprietary information and data) readily available to all 
     users of the repository at an appropriate cost.
       (2) Agreement.--
       (A) In general.--The Secretary may enter into an agreement 
     with a third party for the maintenance of the repository for 
     technical and safety data under paragraph (1)(A).
       (B) Federal financial assistance.--If the Secretary enters 
     into an agreement with an entity for the maintenance of the 
     repository, the entity shall be eligible for Federal 
     financial assistance under this section.
       (3) Availability of information.--Information in the 
     repository shall not be subject to section 555 of title 5, 
     United States Code.
       (h) Advisory Committee.--
       (1) In general.--The Secretary shall establish an Advisory 
     Committee to advise the Secretary on carrying out this 
     subtitle.
       (2) Membership.--The Advisory Committee shall have no more 
     than 20 members, be balanced between metropolitan and rural 
     interests, and include, at a minimum--
       (A) a representative from a State highway department;
       (B) a representative from a local highway department who is 
     not from a metropolitan planning organization;
       (C) a representative from a State, local, or regional 
     transit agency;
       (D) a representative from a metropolitan planning 
     organization;
       (E) a private sector user of intelligent transportation 
     system technologies;
       (F) an academic researcher with expertise in computer 
     science or another information science field related to 
     intelligent transportation systems, and who is not an expert 
     on transportation issues;
       (G) an academic researcher who is a civil engineer;
       (H) an academic researcher who is a social scientist with 
     expertise in transportation issues;
       (I) a representative from a nonprofit group representing 
     the intelligent transportation system industry;
       (J) a representative from a public interest group concerned 
     with safety;
       (K) a representative from a public interest group concerned 
     with the impact of the transportation system on land use and 
     residential patterns; and
       (L) members with expertise in planning, safety, and 
     operations.
       (3) Duties.--The Advisory Committee shall, at a minimum, 
     perform the following duties:
       (A) Provide input into the development of the Intelligent 
     Transportation System aspects of the strategic plan under 
     section 508 of title 23, United States Code.
       (B) Review, at least annually, areas of intelligent 
     transportation systems research being considered for funding 
     by the Department, to determine--
       (i) whether these activities are likely to advance either 
     the state-of-the-practice or state-of-the-art in intelligent 
     transportation systems;
       (ii) whether the intelligent transportation system 
     technologies are likely to be deployed by users, and, if not, 
     to determine the barriers to deployment; and
       (iii) the appropriate roles for government and the private 
     sector in investing in the research and technologies being 
     considered.
       (4) Report.--Not later than February 1 of each year after 
     the date of enactment of this Act, the Secretary shall 
     transmit to the Congress a report including--
       (A) all recommendations made by the Advisory Committee 
     during the preceding calendar year;
       (B) an explanation of how the Secretary has implemented 
     those recommendations; and
       (C) for recommendations not implemented, the reasons for 
     rejecting the recommendations.
       (5) Applicability of federal advisory committee act.--The 
     Advisory Committee shall be subject to the Federal Advisory 
     Committee Act (5 U.S.C. App.).
       (i) Reporting.--
       (1) Guidelines and requirements.--
       (A) In general.--The Secretary shall issue guidelines and 
     requirements for the reporting and evaluation of operational 
     tests and deployment projects carried out under this 
     subtitle.
       (B) Objectivity and independence.--The guidelines and 
     requirements issued under subparagraph (A) shall include 
     provisions to ensure the objectivity and independence of the 
     reporting entity so as to avoid any real or apparent conflict 
     of interest or potential influence on the outcome by parties 
     to any such test or deployment project or by any other formal 
     evaluation carried out under this subtitle.
       (C) Funding.--The guidelines and requirements issued under 
     subparagraph (A) shall establish reporting funding levels 
     based on the size and scope of each test or project that 
     ensure adequate reporting of the results of the test or 
     project.
       (2) Special rule.--Any survey, questionnaire, or interview 
     that the Secretary considers necessary to carry out the 
     reporting of any test, deployment project, or program 
     assessment activity under this subtitle shall not be subject 
     to chapter 35 of title 44, United States Code.

     SEC. 5306. RESEARCH AND DEVELOPMENT.

       (a) In General.--The Secretary shall carry out a 
     comprehensive program of intelligent transportation system 
     research, development, and operational tests of intelligent 
     vehicles and intelligent infrastructure systems and other 
     similar activities that are necessary to carry out this 
     subtitle.
       (b) Priority Areas.--Under the program, the Secretary shall 
     give higher priority to funding projects that--
       (1) enhance mobility and productivity through improved 
     traffic management, incident management, transit management, 
     freight management, road weather management, toll collection, 
     traveler information, or highway operations systems and 
     remote sensing products;
       (2) utilize interdisciplinary approaches to develop traffic 
     management strategies and tools to address multiple impacts 
     of congestion concurrently;
       (3) address traffic management, incident management, 
     transit management, toll collection traveler information, or 
     highway operations systems with goals of--
       (A) reducing metropolitan congestion by not less than 5 
     percent by 2010;
       (B) ensuring that a national, interoperable 5-1-1 system, 
     along with a national traffic information system that 
     includes a user-friendly, comprehensive website, is fully 
     implemented for use by travelers throughout the United States 
     by September 30, 2010; and
       (C)(i) improving incident management response, particularly 
     in rural areas, so that rural emergency response times are 
     reduced by an average of 10 minutes; and
       (ii) improving communication between emergency care 
     providers and trauma centers;
       (4) incorporate research on the impact of environmental, 
     weather, and natural conditions on intelligent transportation 
     systems, including the effects of cold climates;
       (5) enhance intermodal use of intelligent transportation 
     systems for diverse groups, including for emergency and 
     health-related services;
       (6) enhance safety through improved crash avoidance and 
     protection, crash and other notification, commercial motor 
     vehicle operations, and infrastructure-based or cooperative 
     safety systems; and
       (7) facilitate the integration of intelligent 
     infrastructure, vehicle, and control technologies.
       (c) Federal Share.--The Federal share of the cost of 
     operational tests and demonstrations under subsection (a) 
     shall not exceed 80.

     SEC. 5307. NATIONAL ARCHITECTURE AND STANDARDS.

       (a) In General.--
       (1) Development, implementation, and maintenance.--
     Consistent with section 12(d) of the National Technology 
     Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110 
     Stat. 783), the Secretary shall develop, implement, and 
     maintain a national architecture and supporting standards and 
     protocols to promote the widespread use and evaluation of 
     intelligent transportation system technology as a component 
     of the surface transportation systems of the United States.
       (2) Interoperability and efficiency.--To the maximum extent 
     practicable, the national architecture shall promote 
     interoperability among, and efficiency of, intelligent 
     transportation system technologies implemented throughout the 
     United States.
       (3) Use of standards development organizations.--In 
     carrying out this section, the Secretary shall use the 
     services of such standards development organizations as the 
     Secretary determines to be appropriate.
       (4) Use of expert panel.--
       (A) Designation.--The Secretary shall designate a panel of 
     experts to recommend ways to expedite and streamline the 
     process for developing the standards and protocols to be 
     developed pursuant to paragraph (1).
       (B) Nonapplicability of advisory committee act.--The expert 
     panel shall not be subject to the Federal Advisory Committee 
     Act (5 U.S.C. App.).
       (C) Deadline for recommendation.--Not later than September 
     30, 2007, the expert panel shall provide the Secretary with a 
     recommendation relating to such standards development.
       (b) Provisional Standards.--
       (1) In general.--If the Secretary finds that the 
     development or balloting of an intelligent transportation 
     system standard jeopardizes the timely achievement of the 
     objectives identified in subsection (a), the Secretary may 
     establish a provisional standard, after consultation with 
     affected parties, using, to the extent practicable, the work 
     product of appropriate standards development 
     organizations.
       (2) Period of effectiveness.--A provisional standard 
     established under paragraph (1) shall be published in the 
     Federal Register and remain in effect until the appropriate 
     standards development organization adopts and publishes a 
     standard.
       (c) Conformity With National Architecture.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the Secretary shall ensure that intelligent 
     transportation system projects carried out using funds made 
     available from the Highway Trust Fund, including funds made 
     available under this subtitle to deploy intelligent 
     transportation system technologies, conform to the national 
     architecture, applicable standards or provisional standards, 
     and protocols developed under subsection (a).
       (2) Secretary's discretion.--The Secretary may authorize 
     exceptions to paragraph (1) for--
       (A) projects designed to achieve specific research 
     objectives outlined in the national intelligent 
     transportation system program plan or the surface 
     transportation research and development strategic plan 
     developed under section 508 of title 23, United States Code; 
     or
       (B) the upgrade or expansion of an intelligent 
     transportation system in existence on the date of enactment 
     of this Act if the Secretary determines that the upgrade or 
     expansion--
       (i) would not adversely affect the goals or purposes of 
     this subtitle;
       (ii) is carried out before the end of the useful life of 
     such system; and

[[Page H7405]]

       (iii) is cost-effective as compared to alternatives that 
     would meet the conformity requirement of paragraph (1).
       (3) Exceptions.--Paragraph (1) shall not apply to funds 
     used for operation or maintenance of an intelligent 
     transportation system in existence on the date of enactment 
     of this Act.

     SEC. 5308. ROAD WEATHER RESEARCH AND DEVELOPMENT PROGRAM.

       (a) Establishment.--The Secretary shall establish a road 
     weather research and development program to--
       (1) maximize use of available road weather information and 
     technologies;
       (2) expand road weather research and development efforts to 
     enhance roadway safety, capacity, and efficiency while 
     minimizing environmental impacts; and
       (3) promote technology transfer of effective road weather 
     scientific and technological advances.
       (b) Stakeholder Input.--In carrying out this section, the 
     Secretary shall consult with the National Oceanic and 
     Atmospheric Administration, the National Science Foundation, 
     the American Association of State Highway and Transportation 
     Officials, nonprofit organizations, and the private sector.
       (c) Contents.--The program established under this section 
     shall solely carry out research and development called for in 
     the National Research Council's report entitled ``A Research 
     Agenda for Improving Road Weather Services''. Such research 
     and development includes--
       (1) integrating existing observational networks and data 
     management systems for road weather applications;
       (2) improving weather modeling capabilities and forecast 
     tools, such as the road surface and atmospheric interface;
       (3) enhancing mechanisms for communicating road weather 
     information to users, such as transportation officials and 
     the public; and
       (4) integrating road weather technologies into an 
     information infrastructure.
       (d) Activities.--In carrying out this section, the 
     Secretary shall--
       (1) enable efficient technology transfer;
       (2) improve education and training of road weather 
     information users, such as State and local transportation 
     officials and private sector transportation contractors; and
       (3) coordinate with transportation weather research 
     programs in other modes, such as aviation.
       (e) Funding.--
       (1) In general.--In awarding funds under this section, the 
     Secretary shall give preference to applications with 
     significant matching funds from non-Federal sources.
       (2) Funds for road weather research and development.--Of 
     the amounts made available by section 5101(a)(5) of this Act, 
     $5,000,000 for each of fiscal years 2006 through 2009 shall 
     be available to carry out this section.

     SEC. 5309. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.

       (a) Establishment.--The Secretary shall establish 4 centers 
     for surface transportation excellence.
       (b) Goals.--The goals of the centers for surface 
     transportation excellence are to promote and support 
     strategic national surface transportation programs and 
     activities relating to the work of State departments of 
     transportation in the areas of environment, surface 
     transportation safety, rural safety, and project finance.
       (c) Role of Centers.--To achieve the goals set forth in 
     subsection (b), the Secretary shall establish the 4 centers 
     as follows:
       (1) Environmental excellence.--To provide technical 
     assistance, information sharing of best practices, and 
     training in the use of tools and decision-making processes 
     that can assist States in planning and delivering 
     environmentally sound surface transportation projects.
       (2) Surface transportation safety.--To develop and 
     disseminate advanced transportation safety techniques and 
     innovations in both rural areas and urban communities. The 
     center will use a controlled access highway with state of the 
     art features, to test safety devices and techniques that 
     enhance driver performance, examine advanced pavement and 
     lighting systems, and develop techniques to address older 
     driver and fatigue driver issues.
       (3) Rural safety.--To provide research, training, and 
     outreach on innovative uses of technology to enhance rural 
     safety and economic development, assess local community needs 
     to improve access to mobile emergency treatment, and develop 
     online and seminar training needs of rural transportation 
     practitioners and policy-makers.
       (4) Project finance.--To provide support to State 
     transportation departments in the development of finance 
     plans and project oversight tools and to develop and offer 
     training in state of the art financing methods to advance 
     projects and leverage funds.
       (d) Funding.--
       (1) In general.--Of the amounts made available by section 
     5101(a)(1) of this Act, $3,750,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     section.
       (2) Allocation of funds.--Of the funds made available under 
     paragraph (1) the Secretary shall use such amounts as 
     follows:
       (A) $1,250,000 to establish the Center for Environmental 
     Excellence.
       (B) $750,000 to establish the Center for Excellence in 
     Surface Transportation Safety at the Virginia Tech 
     Transportation Institute.
       (C) $875,000 to establish the Center for Excellence in 
     Rural Safety at the Hubert H. Humphrey Institute, Minnesota.
       (D) $875,000 to establish the Center for Excellence in 
     Project Finance.
       (3) Applicability of title 23.--Funds authorized by this 
     section shall be available for obligation in the same manner 
     as if such funds were apportioned under chapter 1 of title 
     23, United States Code, except that the Federal share shall 
     be 100 percent.
       (e) Program Administration.--
       (1) Competition.--A party entering into a contract, 
     cooperative agreement, or other transaction with the 
     Secretary, or receiving a grant to perform research or 
     provide technical assistance under subsections (d)(2)(A) and 
     (d)(2)(D) shall be selected on a competitive basis, to the 
     maximum extent practicable.
       (2) Strategic plan.--The Secretary shall require each 
     center to develop a multiyear strategic plan that describes--
       (A) the activities to be undertaken; and
       (B) how the work of the center is coordinated with the 
     activities of the Federal Highway Administration and the 
     various other research, development, and technology transfer 
     activities authorized by this title. Such plans shall be 
     submitted to the Secretary by January 1, 2006, and each year 
     thereafter.

     SEC. 5310. DEFINITIONS.

       In this subtitle, the following definitions apply:
       (1) Incident.--The term ``incident'' means a crash, a 
     natural disaster, workzone activity, special event, or other 
     emergency road user occurrence that adversely affects or 
     impedes the normal flow of traffic.
       (2) Intelligent transportation infrastructure.--The term 
     ``intelligent transportation infrastructure'' means fully 
     integrated public sector intelligent transportation system 
     components, as defined by the Secretary.
       (3) Intelligent transportation system.--The term 
     ``intelligent transportation system'' means electronics, 
     photonics, communications, or information processing used 
     singly or in combination to improve the efficiency or safety 
     of a surface transportation system.
       (4) National architecture.--The term ``national 
     architecture'' means the common framework for 
     interoperability that defines--
       (A) the functions associated with intelligent 
     transportation system user services;
       (B) the physical entities or subsystems within which the 
     functions reside;
       (C) the data interfaces and information flows between 
     physical subsystems; and
       (D) the communications requirements associated with the 
     information flows.
       (5) Project.--The term ``project'' means an undertaking to 
     research, develop, or operationally test intelligent 
     transportation systems or any other undertaking eligible for 
     assistance under this subtitle.
       (6) Standard.--The term ``standard'' means a document 
     that--
       (A) contains technical specifications or other precise 
     criteria for intelligent transportation systems that are to 
     be used consistently as rules, guidelines, or definitions of 
     characteristics so as to ensure that materials, products, 
     processes, and services are fit for their purposes; and
       (B) may support the national architecture and promote--
       (i) the widespread use and adoption of intelligent 
     transportation system technology as a component of the 
     surface transportation systems of the United States; and
       (ii) interoperability among intelligent transportation 
     system technologies implemented throughout the States.
       (7) State.--The term ``State'' has the meaning given the 
     term under section 101 of title 23, United States Code.
       (8) Transportation systems management and operations.--The 
     term ``transportation systems management and operations'' has 
     the meaning given the term under section 101(a) of title 23, 
     United States Code.
      Subtitle D--University Transportation Research; Scholarship 
                             Opportunities

     SEC. 5401. NATIONAL UNIVERSITY TRANSPORTATION CENTERS.

       (a) In General.--Section 5505 of title 49, United States 
     Code, is amended to read as follows:

     ``SEC. 5505. NATIONAL UNIVERSITY TRANSPORTATION CENTERS.

       ``(a) In General.--
       ``(1) Establishment and operation.--The Secretary of 
     Transportation shall make grants under this section to 
     eligible nonprofit institutions of higher learning to 
     establish and operate national university transportation 
     centers.
       ``(2) Role of centers.--The role of each center shall be to 
     advance significant transportation research on critical 
     national transportation issues and to expand the workforce of 
     transportation professionals.
       ``(b) Applicability of Requirements.--A grant received by 
     an eligible nonprofit institution of higher learning under 
     this section shall be available for the same purposes, and 
     shall be subject to the same terms and conditions, as a grant 
     made to a nonprofit institution of higher learning under 
     section 5506.
       ``(c) Eligible Nonprofit Institution of Higher Learning 
     Defined.--In this section, the term `eligible nonprofit 
     institution of higher learning' means each of the following:
       ``(1) University of Alaska.
       ``(2) Marshall University, West Virginia, on behalf of a 
     consortium of West Virginia colleges and universities.
       ``(3) University of Minnesota.
       ``(4) University of Missouri, Rolla.
       ``(5) Northwestern University.
       ``(6) Oklahoma Transportation Center.
       ``(7) Portland State University, in partnership with the 
     University of Oregon, Oregon State University, and the Oregon 
     Institute of Technology.
       ``(8) University of Vermont.
       ``(9) Western Transportation Institute at Montana State 
     University.
       ``(10) University of Wisconsin.
       ``(d) Grants.--The Secretary shall make a grant under this 
     section to each eligible nonprofit institution of higher 
     learning in an

[[Page H7406]]

     amount $2,000,000 in fiscal year 2005 and $3,500,000 in each 
     of fiscal years 2006 through 2009 to carry out this 
     section.''.
       (b) Funding.--Of the amounts made available by section 
     5101(a)(4) of this Act, $20,000,000 for fiscal year 2005 and 
     $35,000,000 for each of fiscal years 2006 through 2009 shall 
     be available to carry out section 5505 of such title.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 55 of such title is amended by striking the item 
     relating to section 5505 and inserting the following:

``5505. National university transportation centers.''.

     SEC. 5402. UNIVERSITY TRANSPORTATION RESEARCH.

       (a) In General.--Section 5506 of title 49, United States 
     Code, is amended to read as follows:

     ``SEC. 5506. UNIVERSITY TRANSPORTATION RESEARCH.

       ``(a) In General.--The Secretary of Transportation shall 
     make grants under this section to nonprofit institutions of 
     higher learning to establish and operate university 
     transportation centers.
       ``(b) Objectives.--Grants received under this section shall 
     be used by nonprofit institutions of higher learning to 
     advance significantly the state-of-the-art in transportation 
     research and expand the workforce of transportation 
     professionals through the following programs and activities:
       ``(1) Research.--Basic and applied research, the products 
     of which are judged by peers or other experts in the field of 
     transportation to advance the body of knowledge in 
     transportation.
       ``(2) Education.--An education program relating to 
     transportation that includes multidisciplinary course work 
     and participation in research.
       ``(3) Technology transfer.--An ongoing program of 
     technology transfer that makes transportation research 
     results available to potential users in a form that can be 
     implemented, utilized, or otherwise applied.
       ``(c) Regional, Tier I, and Tier II Centers.--
       ``(1) Regional and tier i centers.--For each of fiscal 
     years 2005 through 2009, the Secretary shall make grants 
     under subsection (a) to nonprofit institutions of higher 
     learning to establish and operate--
       ``(A) 10 regional university transportation centers; and
       ``(B) 10 Tier I university transportation centers.
       ``(2) Tier ii centers.--
       ``(A) For each of fiscal years 2006 through 2009, the 
     Secretary shall make grants under subsection (a) to nonprofit 
     institutions of higher learning to establish and operate 22 
     Tier II university transportation centers.
       ``(B) The tier II centers consist of the following:
       ``(i) University of Arkansas, Mack-Blackwell Rural 
     Transportation Center.
       ``(ii) University of California, Davis.
       ``(iii) California State University, San Bernardino.
       ``(iv) Cleveland State University, Work Zone Safety 
     Institute.
       ``(v) University of Connecticut.
       ``(vi) University of Delaware in Newark.
       ``(vii) University of Detroit Mercy (including the 
     coalition partners of the university).
       ``(viii) George Mason University.
       ``(ix) Hampton University, Eastern Seaboard Intermodal 
     Transportation Applications Center (ESITAC).
       ``(x) Kansas State University.
       ``(xi) Louisiana State University, LTRC-TTEC.
       ``(xii) University of Massachusetts Amherst.
       ``(xiii) Michigan Technological University.
       ``(xiv) University of Nevada Las Vegas.
       ``(xv) North Carolina State University, Center for 
     Transportation and the Environment.
       ``(xvi) Northwestern University.
       ``(xvii) Ohio Higher Education Transportation Consortium-
     University of Akron.
       ``(xviii) University of Rhode Island.
       ``(xix) University of Toledo.
       ``(xx) Utah State University.
       ``(xxi) Youngstown State University.
       ``(xxii) University of Memphis.
       ``(3) Location of regional centers.--One regional 
     university transportation center shall be located in each of 
     the 10 United States Government regions that comprise the 
     Standard Federal Regional Boundary System.
       ``(4) Limitation.--A nonprofit institution of higher 
     learning may not directly receive a grant under this section 
     for a fiscal year for more than one university transportation 
     center.
       ``(d) Competitive Selection Process.--
       ``(1) Applications.--In order to be eligible to receive a 
     grant under subsection (c)(1), a nonprofit institution of 
     higher learning shall submit to the Secretary an application 
     that is in such form and contains such information as the 
     Secretary may require.
       ``(2) General selection criteria.--Except as otherwise 
     provided by this section, the Secretary shall select each 
     recipient of a grant under subsection (c)(1) through a 
     competitive process on the basis of the following:
       ``(A) The demonstrated research and extension resources 
     available to the recipient to carry out this section.
       ``(B) The capability of the recipient to provide leadership 
     in making national and regional contributions to the solution 
     of immediate and long-range transportation problems.
       ``(C) The recipient's demonstrated commitment of at least 
     $400,000 each year in regularly budgeted institutional 
     amounts to support ongoing transportation research and 
     education programs.
       ``(D) The recipient's demonstrated ability to disseminate 
     results of transportation research and education programs 
     through a statewide or regionwide continuing education 
     program.
       ``(E) The strategic plan the recipient proposes to carry 
     out under the grant.
       ``(e) Regional University Transportation Centers.--
       ``(1) Competition.--Not later than March 31, 2006, and not 
     later than March 31st of every 4th year thereafter, the 
     Secretary shall complete a competition among nonprofit 
     institutions of higher learning for grants to establish and 
     operate the 10 regional university transportation centers 
     referred to in subsection (c)(1)(A).
       ``(2) Selection criteria.--In conducting a competition 
     under paragraph (1), the Secretary shall select a nonprofit 
     institution of higher learning on the basis of--
       ``(A) the criteria described in subsection (d)(2);
       ``(B) the location of the center within the Federal region 
     to be served; and
       ``(C) whether or not the institution (or, in the case of a 
     consortium of institutions, the lead institution) 
     demonstrates that it has a well-established, nationally 
     recognized program in transportation research and education, 
     as evidenced by--
       ``(i) not less than $2,000,000 in highway or public 
     transportation research expenditures each year for each of 
     the preceding 5 years;
       ``(ii) not less than 10 graduate degrees awarded in 
     professional fields closely related to highways and public 
     transportation each year for each of the preceding 5 years; 
     and
       ``(iii) not less than 5 tenured or tenure-track faculty 
     members who specialize on a full-time basis in professional 
     fields closely related to highways and public transportation 
     who, as a group, have published a total at least 50 refereed 
     journal publications on highway or public transportation 
     research during the preceding 5 years.
       ``(3) Grant recipients.--After selecting a nonprofit 
     institution of higher learning as a grant recipient on the 
     basis of a competition conducted under this subsection, the 
     Secretary shall make a grant to the recipient to establish 
     and operate a regional university transportation center in 
     each of the first 4 fiscal years beginning after the date of 
     the competition.
       ``(4) Special rule for fiscal years 2005 and 2006.--For 
     fiscal years 2005 and 2006, the Secretary shall make a grant 
     under this section to each of the 10 nonprofit institutions 
     of higher learning that were competitively selected for 
     grants by the Secretary under this section in July 1999 to 
     operate regional university transportation centers.
       ``(5) Amount of grants.--The Secretary shall make a grant 
     to a nonprofit institution of higher learning to establish 
     and operate a regional university transportation center of--
       ``(A) $1,000,000 for fiscal year 2005;
       ``(B) $2,000,000 for each of fiscal years 2006 through 
     2008; and
       ``(C) $2,225,000 for fiscal year 2009.
       ``(f) Tier I University Transportation Centers.--
       ``(1) Competition.--Not later than June 30, 2006, and not 
     later than June 30 of every 4th year thereafter, the 
     Secretary shall complete a competition among nonprofit 
     institutions of higher learning for grants to establish and 
     operate the 10 Tier I university transportation centers 
     referred to in subsection (c)(1)(B).
       ``(2) Selection criteria.--In conducting a competition 
     under paragraph (1), the Secretary shall select a nonprofit 
     institution of higher learning on the basis of--
       ``(A) the criteria described in subsection (d)(2); and
       ``(B) whether or not the institution (or, in the case of a 
     consortium of institutions, the lead institution) can 
     demonstrate that it has an established, recognized program in 
     transportation research and education, as evidenced by--
       ``(i) not less than $1,000,000 in highway or public 
     transportation research expenditures each year for each of 
     the preceding 5 years or not less than $6,000,000 in such 
     expenditures during the 5 preceding years;
       ``(ii) not less than 5 graduate degrees awarded in 
     professional fields closely related to highways and public 
     transportation each year for each of the preceding 5 years; 
     and
       ``(iii) not less than 3 tenured or tenure-track faculty 
     members who specialize on a full-time basis in professional 
     fields closely related to highways and public transportation 
     who, as a group, have published a total at least 20 refereed 
     journal publications on highway or public transportation 
     research during the preceding 5 years.
       ``(3) Grant recipients.--After selecting a nonprofit 
     institution of higher learning as a grant recipient on the 
     basis of a competition conducted under this subsection, the 
     Secretary shall make a grant to the recipient to establish 
     and operate a Tier I university transportation center in each 
     of the first 4 fiscal years beginning after the date of the 
     competition.
       ``(4) Special rule for fiscal years 2005 and 2006.--For 
     fiscal years 2005 and 2006, the Secretary shall make a grant 
     under this section to each of the 10 nonprofit institutions 
     of higher learning that were competitively selected for grant 
     awards by the Secretary under this section in May 2002 to 
     operate university transportation centers (other than 
     regional centers).
       ``(5) Amount of grants.--The Secretary shall make a grant 
     of $1,000,000 for each of fiscal years 2005 through 2009 to a 
     nonprofit institution of higher learning to establish and 
     operate a Tier I university transportation center.
       ``(g) Tier II University Transportation Centers.--
       ``(1) Selection.--The Secretary shall make grants to the 
     nonprofit institutions of higher learning to establish and 
     operate the 22 Tier II university transportation centers 
     referred to in subsection (c)(2)(B).
       ``(2) Amount of grants.--The Secretary shall make a grant 
     of $500,000 for each of fiscal years

[[Page H7407]]

     2006 through 2009 to a nonprofit institution of higher 
     learning to establish and operate a Tier II university 
     transportation center.
       ``(h) Support of National Strategy for Surface 
     Transportation Research.--In order to be eligible to receive 
     a grant under this section, a nonprofit institution of higher 
     learning shall provide assurances satisfactory to the 
     Secretary that the research and education activities of its 
     university transportation center will support the national 
     strategy for surface transportation research, as identified 
     by--
       ``(1) the report of the National Highway Research and 
     Technology Partnership entitled `Highway Research and 
     Technology: The Need for Greater Investment', dated April 
     2002; and
       ``(2) the programs of the National Research and Technology 
     Program of the Federal Transit Administration.
       ``(i) Maintenance of Effort.--In order to be eligible to 
     receive a grant under this section, a nonprofit institution 
     of higher learning shall enter into an agreement with the 
     Secretary to ensure that the institution will maintain total 
     expenditures from all other sources to establish and operate 
     a university transportation center and related research 
     activities at a level at least equal to the average level of 
     such expenditures in its 2 fiscal years prior to award of a 
     grant under this section.
       ``(j) Federal Share.--The Federal share of the costs of 
     activities carried out using a grant made under this section 
     shall be 50 percent of such costs. The non-Federal share may 
     include funds provided to a recipient under section 503, 
     504(b), or 505 of title 23.
       ``(k) Program Coordination.--
       ``(1) Coordination.--The Secretary shall coordinate the 
     research, education, and technology transfer activities that 
     grant recipients carry out under this section, disseminate 
     the results of the research, and establish and operate a 
     clearinghouse to disseminate the results of the research.
       ``(2) Annual review and evaluation.--At least annually, and 
     consistent with the plan developed under section 508 of title 
     23, the Secretary shall review and evaluate programs of grant 
     recipients.
       ``(3) Management and oversight.--The Secretary shall expend 
     not more than $400,000 for each of fiscal years 2005 through 
     2009 from amounts made available to carry out this section to 
     carry out management and oversight of the centers receiving 
     assistance under this section and section 5505.
       ``(l) Program Administration.--The Secretary shall carry 
     out this section acting through the Administrator of the 
     Research and Innovative Technology Administration.
       ``(m) Limitation on Availability of Funds.--Funds made 
     available to carry out this section shall remain available 
     for obligation by the Secretary for a period of 2 years after 
     the last day of the fiscal year for which such funds are 
     authorized.''.
       (b) Funding.--Of the amounts made available by section 
     5101(a)(4) of this Act, the following amounts shall be 
     available to carry out section 5506 of such title.
       (1) $20,400,000 for fiscal year 2005.
       (2) $41,400,000 for each of fiscal years 2006 through 2008.
       (3) $43,900,000 for fiscal year 2009.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 55 of such title is amended by striking the item 
     relating to section 5506 and inserting the following:

``5506. University transportation research.''.
                       Subtitle E--Other Programs

     SEC. 5501. TRANSPORTATION SAFETY INFORMATION MANAGEMENT 
                   SYSTEM PROJECT.

       (a) In General.--The Secretary shall fund and carry out a 
     project to further the development of a comprehensive 
     transportation safety information management system (in this 
     section referred to as ``TSIMS'').
       (b) Purposes.--The purpose of the TSIMS project is to 
     further the development of a software application to provide 
     for the collection, integration, management, and 
     dissemination of safety data from and for use among State and 
     local safety and transportation agencies, including driver 
     licensing, vehicle registration, emergency management system, 
     injury surveillance, roadway inventory, and motor carrier 
     databases.
       (c) Funding.--
       (1) Federal funding.--Of the amounts made available by 
     section 5101(a)(1) of this Act, $1,000,000 for fiscal years 
     2006 and 2007 shall be available to carry out the TSIMS 
     project under this section.
       (2) State contribution.--The sums authorized in paragraph 
     (1) are intended to supplement voluntary contributions to be 
     made by State departments of transportation and other State 
     safety and transportation agencies.

     SEC. 5502. SURFACE TRANSPORTATION CONGESTION RELIEF SOLUTIONS 
                   RESEARCH INITIATIVE.

       (a) Establishment.--The Secretary shall establish a surface 
     transportation congestion solutions research initiative 
     consisting of 2 independent research programs described in 
     subsections (b)(1) and (b)(2) and designed to develop 
     information to assist State transportation departments and 
     metropolitan planning organizations measure and address 
     surface transportation congestion problems.
       (b) Surface Transportation Congestion Solutions Research 
     Program.--
       (1) Improved surface transportation congestion management 
     system measures.--The purposes of the first research program 
     established under this section shall be--
       (A) to examine the effectiveness of surface transportation 
     congestion management systems since enactment of the 
     Intermodal Surface Transportation Efficiency Act of 1991 
     (Public Law 102-240);
       (B) to identify best case examples of locally designed 
     reporting methods and incorporate such methods in research on 
     national models for developing and recommending improved 
     surface transportation congestion measurement and reporting; 
     and
       (C) to incorporate such methods in the development of 
     national models and methods to monitor, measure, and report 
     surface transportation congestion information.
       (2) Analytical techniques for action on surface 
     transportation congestion.--The purposes of the second 
     research program established under this section shall be--
       (A) to analyze the effectiveness of procedures used by 
     State transportation departments and metropolitan planning 
     organizations to assess surface transportation congestion 
     problems and communicate those problems to decisionmakers; 
     and
       (B) to identify methods to ensure that the results of 
     surface transportation congestion analyses lead to the 
     targeting of funding for programs, projects, or services with 
     demonstrated effectiveness in reducing travel delay, 
     congestion, and system unreliability.
       (c) Technical Assistance and Training.--In fiscal year 
     2006, the Secretary shall develop a technical assistance and 
     training program to disseminate the results of the surface 
     transportation congestion solutions research initiative for 
     the purpose of assisting State transportation departments and 
     local transportation agencies with improving their approaches 
     to surface transportation congestion measurement, analysis, 
     and project programming.
       (d) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $9,000,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out subsections 
     (a) and (b) of this section. Of the amounts made available by 
     section 5101(a)(2), $750,000 for each of fiscal years 2006 
     through 2009 shall be available to carry out subsection (c) 
     of this subsection.

     SEC. 5503. MOTOR CARRIER EFFICIENCY STUDY.

       (a) In General.--The Secretary, in coordination with the 
     motor carrier and wireless technology industry, shall conduct 
     a study to--
       (1) identify inefficiencies in the transportation of 
     freight;
       (2) evaluate the safety, productivity, and reduced cost 
     improvements that may be achieved through the use of wireless 
     technologies to address the inefficiencies identified in 
     paragraph (1); and
       (3) conduct, as appropriate, field tests demonstrating the 
     technologies identified in paragraph (2).
       (b) Program Elements.--The program shall include, at a 
     minimum, the following:
       (1) Fuel monitoring and management systems.
       (2) Radio frequency identification technology.
       (3) Electronic manifest systems.
       (4) Cargo theft prevention.
       (c) Federal Share.--The Federal share of the cost of the 
     study under this section shall be 100 percent.
       (d) Annual Report.--The Secretary shall prepare and submit 
     to Congress an annual report on the programs and activities 
     carried out under this section.
       (e) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, the Secretary shall make available 
     $1,250,000 to the Federal Motor Carrier Safety Administration 
     for each of fiscal years 2006 through 2009 to carry out this 
     section.

     SEC. 5504. CENTER FOR TRANSPORTATION ADVANCEMENT AND REGIONAL 
                   DEVELOPMENT.

       (a) Establishment.--The Secretary shall establish a Center 
     for Transportation Advancement and Regional Development 
     (referred to in this section as the ``Center'') to assist, 
     through training, education, and research, in the 
     comprehensive development of small metropolitan and rural 
     regional transportation systems that are responsive to the 
     needs of businesses and local communities.
       (b) Activities.--In carrying out this section, the Center 
     shall--
       (1) provide training, information, and professional 
     resources for small metropolitan and rural regions to pursue 
     innovative strategies to expand the capabilities, capacity, 
     and effectiveness of a region's transportation network, 
     including activities related to freight projects, transit 
     system upgrades, roadways and bridges, and intermodal 
     transfer facilities and operations;
       (2) assist local officials, rural transportation and 
     economic development planners, officials from State 
     departments of transportation and economic development, 
     business leaders, and other stakeholders in developing 
     public-private partnerships to enhance their transportation 
     systems; and
       (3) promote the leveraging of regional transportation 
     planning with regional economic and business development 
     planning to assure that appropriate transportation systems 
     are created.
       (c) Program Administration.--To carry out this section, the 
     Secretary shall make a grant to, or enter into a cooperative 
     agreement or contract with the National Association of 
     Development Organizations.
       (d) Funding.--
       (1) In general.--Of the amounts made available by section 
     5101(a)(1) of this Act, $625,000 shall be available for each 
     of fiscal years 2006 through 2009 to carry out this section.
       (2) Federal share.--The Federal share of the cost of 
     activities carried out in accordance with this subsection 
     shall be 100 percent.

     SEC. 5505. TRANSPORTATION SCHOLARSHIP OPPORTUNITIES PROGRAM.

       (a) In General.--
       (1) Establishment of program.--The Secretary may establish 
     and implement a scholarship program for the purpose of 
     attracting qualified students for transportation-related 
     critical jobs.

[[Page H7408]]

       (2) Partnership.--The Secretary may establish the program 
     in partnership with appropriate nongovernmental institutions.
       (b) Participation.--An operating administration of the 
     Department and the Office of Inspector General may 
     participate in the scholarship program.
       (c) Funding.--Notwithstanding any other provision of law, 
     the Secretary may use funds available to an operating 
     administration or from the Office of Inspector General of the 
     Department for the purpose of carrying out this section.

     SEC. 5506. COMMERCIAL REMOTE SENSING PRODUCTS AND SPATIAL 
                   INFORMATION TECHNOLOGIES.

       (a) In General.--The Secretary shall establish and carry 
     out a program to validate commercial remote sensing products 
     and spatial information technologies for application to 
     national transportation infrastructure development and 
     construction.
       (b) Program.--
       (1) National policy.--The Secretary shall establish and 
     maintain a national policy for the use of commercial remote 
     sensing products and spatial information technologies in 
     national transportation infrastructure development and 
     construction.
       (2) Policy implementation.--The Secretary shall develop new 
     applications of commercial remote sensing products and 
     spatial information technologies for the implementation of 
     the national policy established and maintained under 
     paragraph (1).
       (c) Cooperation.--The Secretary shall carry out this 
     section in cooperation with a consortium of university 
     research centers.
       (d) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $7,750,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     section.

     SEC. 5507. RURAL INTERSTATE CORRIDOR COMMUNICATIONS STUDY.

       (a) Study.--The Secretary, in cooperation with the 
     Secretary of Commerce, State departments of transportation, 
     and other appropriate State, regional, and local officials, 
     shall conduct a study on the feasibility of installing fiber 
     optic cabling and wireless communication infrastructure along 
     multistate Interstate System route corridors for improved 
     communications services to rural communities along such 
     corridors.
       (b) Contents of Study.--In conducting the study, the 
     Secretary shall identify--
       (1) impediments to installation of the infrastructure 
     described in subsection (a) along multistate Interstate 
     System route corridors and to connecting such infrastructure 
     to the rural communities along such corridors;
       (2) the effective geographic range of such infrastructure;
       (3) potential opportunities for the private sector to fund, 
     wholly or partially, the installation of such infrastructure;
       (4) potential benefits fiber optic cabling and wireless 
     communication infrastructure may provide to rural communities 
     along such corridors, including the effects of the 
     installation of such infrastructure on economic development, 
     deployment of intelligent transportation systems technologies 
     and applications, homeland security precaution and response, 
     and education and health systems in those communities;
       (5) rural broadband access points for such infrastructure;
       (6) areas of environmental conflict with such installation;
       (7) real estate ownership issues relating to such 
     installation;
       (8) preliminary design for placement of fiber optic cable 
     and wireless towers;
       (9) monetary value of the rights-of-way necessary for such 
     installation;
       (10) applicability and transferability of the benefits of 
     such installation to other rural corridors; and
       (11) safety and other operational issues associated with 
     the installation and maintenance of fiber optic cabling and 
     wire infrastructure within Interstate System rights-of-way 
     and other publicly owned rights-of-way.
       (c) Corridor Locations.--The study required under 
     subsection (a) shall be conducted for corridors along--
       (1) Interstate Route 90 through rural Wisconsin, southern 
     Minnesota, northern Iowa, and South Dakota;
       (2) Interstate Route 20 through Alabama, Mississippi, and 
     northern Louisiana;
       (3) Interstate Route 91 through Vermont, New Hampshire, and 
     Massachusetts; and
       (4) any other rural corridor the Secretary considers 
     appropriate.
       (d) Report to Congress.--Not later than September 30, 2007, 
     the Secretary shall submit to Congress a report on the 
     results of the study, including any recommendations of the 
     Secretary.
       (e) Federal Share.--The Federal share of the cost of the 
     study shall be 100 percent.
       (f) Funding.--Of the amounts made available under section 
     5101(a)(5) of this Act, $1,000,000 shall be available for 
     fiscal year 2006, and $2,000,000 shall be available for 
     fiscal year 2007 to carry out this section.

     SEC. 5508. TRANSPORTATION TECHNOLOGY INNOVATION AND 
                   DEMONSTRATION PROGRAM.

       Section 5117(b) of the Transportation Equity Act for the 
     21st Century (112 Stat 449; 112 Stat. 864; 115 Stat. 2330) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Intelligent transportation infrastructure.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Congested area.--The term `congested area' means a 
     metropolitan area that experiences significant traffic 
     congestion, as determined by the Secretary on an annual 
     basis, including the metropolitan areas of Albany, Atlanta, 
     Austin, Burlington, Charlotte, Columbus, Greensboro, 
     Hartford, Jacksonville, Kansas City, Louisville, Milwaukee, 
     Minneapolis-St. Paul, Nashville, New Orleans, Norfolk, 
     Raleigh, Richmond, Sacramento, San Jose, Tuscson, and Tulsa.
       ``(ii) Deployment area.--The term `deployment area' means 
     any of the metropolitan areas of Baltimore, Birmingham, 
     Boston, Chicago, Cleveland, Dallas/Ft. Worth, Denver, 
     Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, 
     Miami, New York/Northern New Jersey, Northern Kentucky/
     Cincinnati, Oklahoma City, Orlando, Philadelphia, Phoenix, 
     Pittsburgh, Portland, Providence, Salt Lake, San Diego, San 
     Francisco, St. Louis, Seattle, Tampa, and Washington, 
     District of Columbia.
       ``(iii) Metropolitan area.--The term `metropolitan area', 
     including a major transportation corridor serving a 
     metropolitan area, means any area that--

       ``(I) has a population exceeding 300,000; and
       ``(II) meets criteria established by the Secretary in 
     conjunction with the intelligent vehicle highway systems 
     corridors program.

       ``(iv) Original contract.--The term `original contract' 
     means the Department of Transportation contract numbered DTTS 
     59-99-D-00445 T020013.
       ``(v) Program.--The term `program' means the 2-part 
     intelligent transportation infrastructure program carried out 
     under this paragraph.
       ``(vi) State transportation department.--The term `State 
     transportation department' means--

       ``(I) a State transportation department (as defined in 
     section 101 of title 23, United States Code); and
       ``(II) a designee of a State transportation department (as 
     so defined) for the purpose of entering into contracts.

       ``(vii) Uncommitted funds.--The term `uncommitted funds' 
     means the total amount of funds that, as of the date that is 
     180 days after the date of enactment of the SAFETEA-LU, 
     remain uncommitted under the original contract.
       ``(B) Intelligent transportation infrastructure program.--
       ``(i) In general.--The Secretary shall carry out a 2-part 
     intelligent transportation infrastructure program in 
     accordance with this paragraph to advance the deployment of 
     an operational intelligent transportation infrastructure 
     system, through measurement of various transportation system 
     activities, to simultaneously--

       ``(I) aid in transportation planning and analysis; and
       ``(II) make a significant contribution to the ITS program 
     under this title.

       ``(ii) Objectives.--The objectives of the program are--

       ``(I) to build or integrate an infrastructure of the 
     measurement of various transportation system metrics to aid 
     in planning, analysis, and maintenance of the Department of 
     Transportation, including the buildout, maintenance, and 
     operation of greater than 40 metropolitan area systems with a 
     total cost not to exceed $2,000,000 for each metropolitan 
     area;
       ``(II) to provide private technology commercialization 
     initiatives to generate revenues that will be reinvested in 
     the intelligent transportation infrastructure system;
       ``(III) to aggregate data into reports for multipoint data 
     distribution techniques; and
       ``(IV) with respect to part I of the program under 
     subparagraph (C), to use an advanced information system 
     designed and monitored by an entity with experience with the 
     Department of Transportation in the design and monitoring of 
     high-reliability, mission-critical voice and data systems.

       ``(C) Part I.--
       ``(i) In general.--In carrying out part I of the program, 
     the Secretary shall permit the entity to which the original 
     contract was awarded to use uncommitted funds to deploy 
     intelligent transportation infrastructure systems that have 
     been accepted by the Secretary--

       ``(I) in accordance with the terms of the original 
     contract; and
       ``(II) in any deployment area, with the consent of the 
     State transportation department for the deployment area.

       ``(ii) Applicable conditions.--The same asset ownership, 
     maintenance, fixed price contract, and revenue sharing model, 
     and the same competitively selected consortium leader, as 
     were used for the deployment of intelligent transportation 
     infrastructure systems under the original contract before the 
     date of enactment of the SAFETEA-LU shall apply to each 
     deployment carried out under clause (i).
       ``(iii) Deployment in congested areas.--If the entity 
     referred to in clause (i) is unable to use the uncommitted 
     funds by deploying intelligent transportation infrastructure 
     systems in deployment areas, as determined by the Secretary, 
     the entity may deploy the systems in accordance with this 
     paragraph in 1 or more congested areas, with the consent of 
     the State transportation departments for the congested areas.
       ``(D) Part II.--
       ``(i) In general.--In carrying out part II of the program, 
     the Secretary shall award, on a competitive basis, contracts 
     for the deployment of intelligent transportation 
     infrastructure systems that have been accepted by the 
     Secretary in congested areas, with the consent of the State 
     transportation departments for the congested areas.
       ``(ii) Requirements.--The Secretary shall award contracts 
     under clause (i)--

       ``(I) for individual congested areas among entities that 
     seek to deploy intelligent transportation infrastructure 
     systems in the congested areas; and
       ``(II) on the condition that the terms of each contract 
     awarded requires the entity deploying such system to ensure 
     that the deployed system is compatible (as determined by the 
     Secretary) with systems deployed in other congested areas 
     under this paragraph.

       ``(iii) Provisions in contracts.--The Secretary shall 
     require that each contract for the

[[Page H7409]]

     deployment of an intelligent transportation infrastructure 
     system under this subparagraph contain such provisions 
     relating to asset ownership, maintenance, fixed price, and 
     revenue sharing as the Secretary considers to be appropriate.
       ``(E) Use of funds for undeployed systems.--
       ``(i) In general.--If, under part I or part II of the 
     program, a State transportation department for a deployment 
     area or congested area does not consent by the later of the 
     date that is 180 days after the date of enactment of the 
     SAFETEA-LU, or another date determined jointly by the State 
     transportation department and the deployment area or 
     congested area, to participate in the deployment of an 
     intelligent transportation infrastructure system in the 
     deployment area or congested area, upon application by any 
     other deployment area or congested area that has consented by 
     that date to participate in the deployment of such a system, 
     the Secretary shall distribute any such unused funds to any 
     other deployment or congested area that has consented by that 
     date to participate in the deployment of such a system.
       ``(ii) No inclusion in cost limitation.--Costs paid using 
     funds provided through a distribution under clause (i) shall 
     not be considered in determining the limitation on maximum 
     cost described in subparagraph (F)(ii).
       ``(F) Federal share; limits on costs of systems for 
     metropolitan areas.--
       ``(i) Federal share.--Subject to clause (ii), the Federal 
     share of the cost of any project or activity carried out 
     under the program shall be 80 percent.
       ``(ii) Limit on costs of system for each metropolitan 
     area.--

       ``(I) In general.--Not more than $2,000,000 may be provided 
     under this paragraph for deployment of an intelligent 
     transportation infrastructure system for a metropolitan area.
       ``(II) Funding under each part.--A metropolitan area in 
     which an intelligent transportation infrastructure system is 
     deployed under part I or part II under subparagraphs (C) and 
     (D), respectively, including through a distribution of funds 
     under subparagraph (E), may not receive any additional 
     deployment under the other part of the program.

       ``(G) Use of rights-of-way.--
       ``(i) In general.--An intelligent transportation system 
     project described in this paragraph or paragraph (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 for the project, if the Secretary determines that 
     such use is in the public interest.
       ``(ii) Effect of subparagraph.--Nothing in this 
     subparagraph affects the authority of a State or political 
     subdivision of a State--

       ``(I) to regulate highway safety; or
       ``(II) under sections 253 and 332(c)(7) of the 
     Communications Act of 1934 (47 U.S.C. 253, 332(c)(7)).

       ``(H) Authorization of appropriations.--There is authorized 
     to be appropriated such sums as may be necessary for each of 
     fiscal years 2005 through 2009 to carry out this paragraph. 
     ''.

     SEC. 5509. REPEAL.

       Effective October 1 of 2005, sections 5208 and 5209 of 
     subtitle C of title V of The Transportation Equity Act for 
     the 21st Century (23 U.S.C. 502 note; 112 Stat. 452-463) is 
     repealed.

     SEC. 5510. NOTICE.

       (a) Notice of Reprogramming.--If any funds authorized for 
     carrying out this title or the amendments made by this title 
     are subject to a reprogramming action that requires notice to 
     be provided to the Committees on Appropriations, 
     Transportation and Infrastructure, and Science of the House 
     of Representatives and the Committees on Appropriations and 
     Environment and Public Works of the Senate, notice of that 
     action shall be concurrently provided to the Committee of 
     Transportation and Infrastructure and the Committee on 
     Science of the House of Representative and the Committee on 
     Environment and Public Works of the Senate.
       (b) Notice of Reorganization.--On or before the 15th day 
     preceding the date of any major reorganization of a program, 
     project, or activity of the Department for which funds are 
     authorized by this title or the amendments made by this 
     title, the Secretary shall provide notice of the 
     reorganization to the Committees on Transportation and 
     Infrastructure and Science of the House of Representatives 
     and the Committee on Environment and Public Works of the 
     Senate.

     SEC. 5511. MOTORCYCLE CRASH CAUSATION STUDY GRANTS.

       (a) Grants.--The Secretary shall provide grants to the 
     Oklahoma Transportation Center for the purpose of conducting 
     a comprehensive, in-depth motorcycle crash causation study 
     that employs the common international methodology for in-
     depth motorcycle accident investigation of the Organization 
     for Economic Cooperation and Development.
       (b) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $1,408,000 for each of fiscal years 
     2006 and 2007 shall be available to carry out this section.

     SEC. 5512. ADVANCED TRAVEL FORECASTING PROCEDURES PROGRAM.

       (a) Continuation and Acceleration of Transims Deployment.--
       (1) In general.--The Secretary shall accelerate the 
     deployment of the advanced transportation model known as the 
     ``Transportation Analysis Simulation System'' (in this 
     section referred to as ``TRANSIMS''), developed by the Los 
     Alamos National Laboratory.
       (2) Program appreciation.--The purpose of the program is to 
     assist State departments of transportation and metropolitan 
     planning organizations--
       (A) to implement TRANSIMS;
       (B) to develop methods for TRANSIMS applications to 
     transportation planning, air quality analysis, regulatory 
     compliance, and response to natural disasters and other 
     transportation disruptions; and
       (C) to provide training and technical assistance for the 
     implementation of TRANSIMS.
       (b) Required Activities.--The Secretary shall use funds 
     made available to carry out this section to--
       (1) provide funding to State departments of transportation 
     and metropolitan planning organizations serving 
     transportation management areas designated under chapter 52 
     of title 49, United States Code, representing a diversity of 
     populations, geographic regions, and analytic needs to 
     implement TRANSIMS;
       (2) develop methods to demonstrate a wide spectrum of 
     TRANSIMS applications to support local, metropolitan, 
     statewide transportation planning, including integrating 
     highway and transit operational considerations into the 
     transportation Planning process, and estimating the effects 
     of induced travel demand and transit ridership in making 
     transportation conformity determinations where applicable;
       (3) 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;
       (4) to further develop TRANSIMS for additional 
     applications, including--
       (A) congestion analyses;
       (B) major investment studies;
       (C) economic impact analyses;
       (D) alternative analyses;
       (E) freight movement studies;
       (F) emergency evacuation studies;
       (G) port studies; and
       (H) airport access studies;
       (I) induced demand studies; and
       (J) transit ridership analysis.
       (c) Eligible Activities.--The program may support the 
     development of methods to plan for the transportation 
     response to chemical and biological terrorism and other 
     security concerns.
       (d) Allocation of Funds.--Not more than 75 percent of the 
     funds made available to carry out this section may be 
     allocated to activities described in subsection (b)(1).
       (e) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $2,625,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     section.

     SEC. 5513. RESEARCH GRANTS.

       (a) Thermal Imaging.--
       (1) In general.--The Secretary shall make a grant to carry 
     out a demonstration project that uses a thermal imaging 
     inspection system (TIIS) that leverages state-of-the-art 
     thermal imagery technology, integrated with signature 
     recognition software, providing the capability to identify, 
     in real time, faults and failures in tires, brakes and 
     bearings mounted on commercial motor vehicles.
       (2) Use of funds.--Funds shall be used--
       (A) to employ a TIIS in a field environment, along the 
     Interstate, to further assess the system's ability to 
     identify faults in tires, brakes, and bearings mounted on 
     commercial motor vehicles;
       (B) to establish, through statistical analysis, the 
     probability of failure for each component; and
       (C) to develop and integrate a predictive tool into the 
     TIIS, which identifies an impending tire, brake, or bearing 
     failure and provides the use a time frame in which this 
     failure may occur.
       (3) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $2,000,000 in fiscal year 2006 shall 
     be available to carry out this subsection.
       (b) Transportation Injury Research.--
       (1) Grant.--The Secretary shall make a grant to maintain a 
     center for transportation injury research at the Calspan 
     University of Buffalo Research Center, through the North 
     Campus facility located in Amherst, New York, and affiliated 
     with the State University of New York at Buffalo.
       (2) Recoup costs.-- Notwithstanding current law, Federal 
     regulations, or Office of Management and Budget circulars or 
     guidance, the Center shall be permitted to recoup direct and 
     indirect costs and apply a 7 percent fee to the grant made 
     under this subsection.
       (3) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $1,250,000 in each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection.
       (c) Technology Transfer Grant.--
       (1) Grant.--The Secretary shall make grants to the Argonne 
     National Laboratory-Advanced Transportation Technology Center 
     for the purpose of conducting transportation research and 
     demonstration projects that would lead to the exchange of 
     research results with the private sector and collaboration 
     with universities at a centralized location conducive for 
     technology transfer.
       (2) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $4,000,000 in each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection.
       (d) Appalachian Regional Commission.--
       (1) Grant.--The Secretary shall make a grant to the 
     Appalachian Regional Commission to conduct a feasibility 
     study for the creation of a system of inland ports and 
     distribution centers in Appalachia.
       (2) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $500,000 in

[[Page H7410]]

     fiscal year 2006 shall be available to carry out this 
     subsection.
       (e) Automobile Accident Injury Research.--
       (1) Grants.--The Secretary shall make a grant to the 
     Forsyth Institute for research and technology development for 
     preventing and minimizing head, craniofacial, and spinal cord 
     injuries resulting from automobile accidents.
       (2) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $500,000 in each of fiscal years 2006 
     through 2009 shall be available to carry out this subsection.
       (f) Rural Transportation Research.--
       (1) Grants.--The Secretary shall make grants to the New 
     England Transportation Institute in White River Junction, 
     Vermont for rural transportation research.
       (2) Funding.--
       (A) In general.--Of the amounts made available by section 
     5101(a)(1) of this Act, $1,000,000 for fiscal year 2006 shall 
     be available to carry out this subsection and shall remain 
     available until expended.
       (B) Cost-sharing.--
       (i) Federal share.--The Federal Share of the cost of 
     activities carried out under this subsection shall be 80 
     percent.
       (ii) Non-federal share.--The fair market value of any 
     materials or services provided by the non-Federal sponsor for 
     activities under this subsection shall be credited to the 
     non-Federal share.
       (g) Rural Transportation Research Initiative.--
       (1) Grants.--For each of fiscal years 2006 through 2009, 
     the Secretary shall provide a grant to the Upper Great Plains 
     Transportation Institute at North Dakota State University for 
     use in carrying out the Rural Transportation Research 
     Initiative.
       (2) Funding.--
       (A) In general.--Of the amounts made available by section 
     5101(a)(1) of this Act, $500,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection, and shall remain available until expended.
       (B) Cost-sharing.--
       (i) Federal share.--The Federal share of the cost of the 
     activities carried out under this subsection shall be 80 
     percent.
       (ii) Non-federal share.--The fair market value of any 
     materials or services provided by the non-Federal project 
     sponsor for any activity under this subsection shall be 
     credited to the non-Federal share.
       (h) Hydrogen-Powered Transportation Research Initiative.--
       (1) Grants.--For each of fiscal years 2006 through 2009, 
     the Secretary shall provide a grant to the University of 
     Montana for use in carrying out the Hydrogen-Powered 
     Transportation Research Initiative.
       (2) Funding.--
       (A) In general.--Of the amounts made available by section 
     5101(a)(1) of this Act, $750,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection, and shall remain available until expended.
       (B) Cost-sharing.--
       (i) Federal share.--The Federal share of the cost of the 
     activities carried out under this subsection shall be 80 
     percent.
       (ii) Non-federal share.--The fair market value of any 
     materials or services provided by the non-Federal project 
     sponsor for an activity under this subsection shall be 
     credited to the non-Federal share.
       (i) Cold Region and Rural Transportation Research, 
     Maintenance, and Operations.--
       (1) Grants.--The Secretary shall provide grants to the 
     Western Transportation Institute at Montana State University, 
     for use in developing a research facility in Lewistown, 
     Montana, for basic and applied research and testing on 
     surface transportation issues facing rural and cold regions.
       (2) Funding.--
       (A) In general.--Of the amounts made available by section 
     5101(a)(1) of this Act, $1,000,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection, to remain available until expended.
       (B) Cost-sharing.--
       (i) Federal share.--The Federal share of the cost of the 
     activities carried out under this subsection shall be 80 
     percent.
       (ii) Non-federal share.--The fair market value of any 
     materials or services provided by the non-Federal project 
     sponsor for an activity under this section shall be credited 
     to the non-Federal share.
       (j) Advanced Vehicle Technology.--
       (1) Grant.--The Secretary shall make a grant to the 
     University of Kansas Transportation Research Institute for 
     research and development of advanced vehicle technology 
     concepts, focused on vehicle emissions, fuel cells and 
     catalytic processes, and intelligent transportation systems.
       (2) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $2,500,000 in each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection.
       (k) Asphalt Research Consortium.--
       (1) Grant.--The Secretary shall make a grant to the asphalt 
     research consortium lead by the Western Research Institute to 
     research flexible pavement and extending the life-cycle of 
     asphalts.
       (2) Funding.--Of the amounts made available under section 
     5101(a)(1) of this Act, $7,500,000 in each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     subsection.
       (l) Renewable Transportation Systems Research.--
       (1) Grants.--The Secretary shall make grants to the 
     University of Vermont for research, development and field 
     testing of hydrogen fuel cell and biofuel transportation 
     technology.
       (2) Funding.--
       (A) In general.--Of the amounts made available for section 
     5101(a)(1) of this Act, $1,000,000 for fiscal year 2006 to 
     remain available until expended.
       (B) Cost-sharing.--
       (i) Federal share.--The Federal Share of the cost of 
     activities carried out under this section shall be 80 
     percent.
       (ii) Non-federal share.--The fair market value of any 
     materials or services provided by the non-federal sponsor for 
     activities under this section shall be credited to the non-
     federal share.
       (m) Federal Share.--The Federal share of the cost of 
     activities carried out in accordance with this section shall 
     be 80 percent unless otherwise expressly provided by this 
     section or otherwise determined by the Secretary.

     SEC. 5514. COMPETITION FOR SPECIFICATION OF ALTERNATIVE TYPES 
                   OF CULVERT PIPES.

       Notwithstanding any contrary interpretation of appendix A 
     of subpart D of section 635.411 of volume 23, Code of Federal 
     Regulations (as in existence on the date of enactment of this 
     Act), not later than 180 days after the date of enactment of 
     this Act, the Secretary shall ensure that States provide for 
     competition with respect to the specification of alternative 
     types of culvert pipes through requirements that are 
     commensurate with competition requirements for other 
     construction materials, as determined by the Secretary.
            Subtitle F--Bureau of Transportation Statistics

     SEC. 5601. BUREAU OF TRANSPORTATION STATISTICS.

       (a) In General.--Section 111 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 111. Bureau of Transportation Statistics

       ``(a) Establishment.--There is established in the Research 
     and Innovative Technology Administration a Bureau of 
     Transportation Statistics.
       ``(b) Director.--
       ``(1) Appointment.--The Bureau shall be headed by a 
     Director who shall be appointed in the competitive service by 
     the Secretary of Transportation.
       ``(2) Qualifications.--The Director shall be appointed from 
     among individuals who are qualified to serve as the Director 
     by virtue of their training and experience in the collection, 
     analysis, and use of transportation statistics.
       ``(c) Responsibilities.--The Director of the Bureau shall 
     serve as the Secretary's senior advisor on data and 
     statistics and shall be responsible for carrying out the 
     following duties:
       ``(1) Providing data, statistics, and analysis to 
     transportation decisionmakers.--Ensuring that the statistics 
     compiled under paragraph (5) are designed to support 
     transportation decisionmaking by the Federal Government, 
     State and local governments, metropolitan planning 
     organizations, transportation-related associations, the 
     private sector (including the freight community), and the 
     public.
       ``(2) Coordinating collection of information.--Working with 
     the operating administrations of the Department to establish 
     and implement the Bureau's data programs and to improve the 
     coordination of information collection efforts with other 
     Federal agencies.
       ``(3) Data modernization.--Continually improving surveys 
     and data collection methods to improve the accuracy and 
     utility of transportation statistics.
       ``(4) Encouraging data standardization.--Encouraging the 
     standardization of data, data collection methods, and data 
     management and storage technologies for data collected by the 
     Bureau, the operating administrations of the Department of 
     Transportation, States, local governments, metropolitan 
     planning organizations, and private sector entities.
       ``(5) Transportation statistics.--Collecting, compiling, 
     analyzing, and publishing a comprehensive set of 
     transportation statistics on the performance and impacts of 
     the national transportation system, including statistics on--
       ``(A) productivity in various parts of the transportation 
     sector;
       ``(B) traffic flows for all modes of transportation;
       ``(C) other elements of the intermodal transportation 
     database established under subsection (e);
       ``(D) travel times and measures of congestion;
       ``(E) vehicle weights and other vehicle characteristics;
       ``(F) demographic, economic, and other variables 
     influencing traveling behavior, including choice of 
     transportation mode and goods movement;
       ``(G) transportation costs for passenger travel and goods 
     movement;
       ``(H) availability and use of mass transit (including the 
     number of passengers served by each mass transit authority) 
     and other forms of for-hire passenger travel;
       ``(I) frequency of vehicle and transportation facility 
     repairs and other interruptions of transportation service;
       ``(J) safety and security for travelers, vehicles, and 
     transportation systems;
       ``(K) consequences of transportation for the human and 
     natural environment;
       ``(L) the extent, connectivity, and condition of the 
     transportation system, building on the national 
     transportation atlas database developed under subsection (g); 
     and
       ``(M) transportation-related variables that influence the 
     domestic economy and global competitiveness.
       ``(6) National spatial data infrastructure.--Building and 
     disseminating the transportation layer of the National 
     Spatial Data Infrastructure developed under Executive Order 
     No. 12906, including coordinating the development of 
     transportation geospatial data standards, compiling 
     intermodal geospatial data, and collecting geospatial data 
     that is not being collected by others.

[[Page H7411]]

       ``(7) Issuing guidelines.--Issuing guidelines for the 
     collection of information by the Department required for 
     statistics to be compiled under paragraph (5) in order to 
     ensure that such information is accurate, reliable, relevant, 
     and in a form that permits systematic analysis.
       ``(8) Review sources and reliability of statistics.--
     Reviewing and reporting to the Secretary on the sources and 
     reliability of the statistics proposed by the heads of the 
     operating administrations of the Department to measure 
     outputs and outcomes as required by the Government 
     Performance and Results Act of 1993 (Public Law 103-62; 107 
     Stat. 285), and the amendments made by such Act, and carrying 
     out such other reviews of the sources and reliability of 
     other data collected or statistical information published by 
     the heads of the operating administrations of the Department 
     as shall be requested by the Secretary.
       ``(9) Making statistics accessible.--Making the statistics 
     published under this subsection readily accessible to the 
     public.
       ``(d) Information Needs Assessment.--
       ``(1) In general.--Not later than 60 days after the date of 
     enactment of the SAFETEA-LU, the Secretary shall enter into 
     an agreement with the National Research Council to develop 
     and publish a National transportation information needs 
     assessment (referred to in this subsection as the 
     `assessment'). The assessment shall be submitted to the 
     Secretary and the appropriate committees of Congress not 
     later than 24 months after such agreement is entered into.
       ``(2) Content.--The assessment shall--
       ``(A) identify, in order of priority, the transportation 
     data that is not being collected by the Bureau, operating 
     administrations of the Department, or other Federal, State, 
     or local entities, but is needed to improve transportation 
     decisionmaking at the Federal, State, and local levels and to 
     fulfill the requirements of subsection (c)(5);
       ``(B) recommend whether the data identified in subparagraph 
     (A) should be collected by the Bureau, other parts of the 
     Department, or by other Federal, State, or local entities, 
     and whether any data is of a higher priority than data 
     currently being collected;
       ``(C) identify any data the Bureau or other Federal, State, 
     or local entity is collecting that is not needed;
       ``(D) describe new data collection methods (including 
     changes in surveys) and other changes the Bureau or other 
     Federal, State, or local entity should implement to improve 
     the standardization, accuracy, and utility of transportation 
     data and statistics; and
       ``(E) estimate the cost of implementing any 
     recommendations.
       ``(3) Consultation.--In developing the assessment, the 
     National Research Council shall consult with the Department's 
     Advisory Council on Transportation Statistics and a 
     representative cross-section of transportation community 
     stakeholders as well as other Federal agencies, including the 
     Environmental Protection Agency, the Department of Energy, 
     and the Department of Housing and Urban Development.
       ``(4) Report to congress.--Not later than 180 days after 
     the date on which the National Research Council submits the 
     assessment under paragraph (1), the Secretary shall submit a 
     report to Congress that describes--
       ``(A) how the Department plans to fill the data gaps 
     identified under paragraph (2)(A);
       ``(B) how the Department plans to stop collecting data 
     identified under paragraph (2)(C);
       ``(C) how the Department plans to implement improved data 
     collection methods and other changes identified under 
     paragraph (2)(D);
       ``(D) the expected costs of implementing subparagraphs (A), 
     (B), and (C) of this paragraph;
       ``(E) any findings of the assessment under paragraph (1) 
     with which the Secretary disagrees, and why; and
       ``(F) any proposed statutory changes needed to implement 
     the findings of the assessment under paragraph (1).
       ``(e) Intermodal Transportation Database.--
       ``(1) In general.--In consultation with the Under Secretary 
     for Policy, the Assistant Secretaries, and the heads of the 
     operating administrations of the Department, the Director 
     shall establish and maintain a transportation database for 
     all modes of transportation.
       ``(2) Use.--The database shall be suitable for analyses 
     carried out by the Federal Government, the States, and 
     metropolitan planning organizations.
       ``(3) Contents.--The database shall include--
       ``(A) information on the volumes and patterns of movement 
     of goods, including local, interregional, and international 
     movement, by all modes of transportation and intermodal 
     combinations and by relevant classification;
       ``(B) information on the volumes and patterns of movement 
     of people, including local, interregional, and international 
     movements, by all modes of transportation (including bicycle 
     and pedestrian modes) and intermodal combinations and by 
     relevant classification;
       ``(C) information on the location and connectivity of 
     transportation facilities and services; and
       ``(D) a national accounting of expenditures and capital 
     stocks on each mode of transportation and intermodal 
     combination.
       ``(f) National Transportation Library.--
       ``(1) In general.--The Director shall establish and 
     maintain a National Transportation Library, which shall 
     contain a collection of statistical and other information 
     needed for transportation decisionmaking at the Federal, 
     State, and local levels.
       ``(2) Access.--The Director shall facilitate and promote 
     access to the Library, with the goal of improving the ability 
     of the transportation community to share information and the 
     ability of the Director to make statistics readily accessible 
     under subsection (c)(9).
       ``(3) Coordination.--The Director shall work with other 
     transportation libraries and transportation information 
     providers, both public and private, to achieve the goal 
     specified in paragraph (2).
       ``(g) National Transportation Atlas Database.--
       ``(1) In general.--The Director shall develop and maintain 
     a national transportation atlas database that is comprised of 
     geospatial databases that depict--
       ``(A) transportation networks;
       ``(B) flows of people, goods, vehicles, and craft over the 
     networks; and
       ``(C) social, economic, and environmental conditions that 
     affect or are affected by the networks.
       ``(2) Intermodal network analysis.--The databases shall be 
     able to support intermodal network analysis.
       ``(h) Mandatory Response Authority for Freight Data 
     Collection.--Whoever, being the owner, official, agent, 
     person in charge, or assistant to the person in charge of any 
     freight corporation, company, business, institution, 
     establishment, or organization of any nature whatsoever, 
     neglects or refuses, when requested by the Director or 
     other authorized officer, employee, or contractor of the 
     Bureau, to answer completely and correctly to the best of 
     the individual's knowledge all questions relating to the 
     corporation, company, business, institution, 
     establishment, or other organization, or to make available 
     records or statistics in the individual's official 
     custody, contained in a data collection request prepared 
     and submitted under the authority of subsection (c)(1), 
     shall be fined not more than $500; but if the individual 
     willfully gives a false answer to such a question, the 
     individual shall be fined not more than $10,000.
       ``(i) Research and Development Grants.--The Secretary may 
     make grants to, or enter into cooperative agreements or 
     contracts with, public and nonprofit private entities 
     (including State transportation departments, metropolitan 
     planning organizations, and institutions of higher education) 
     for--
       ``(1) investigation of the subjects specified in subsection 
     (c)(5) and research and development of new methods of data 
     collection, standardization, management, integration, 
     dissemination, interpretation, and analysis;
       ``(2) demonstration programs by States, local governments, 
     and metropolitan planning organizations to coordinate data 
     collection, reporting, management, storage, and archiving to 
     simplify data comparisons across jurisdictions;
       ``(3) development of electronic clearinghouses of 
     transportation data and related information, as part of the 
     National Transportation Library under subsection (f); and
       ``(4) development and improvement of methods for sharing 
     geographic data, in support of the database under subsection 
     (g) and the National Spatial Data Infrastructure.
       ``(j) Limitations on Statutory Construction.--Nothing in 
     this section shall be construed--
       ``(1) to authorize the Bureau to require any other 
     department or agency to collect data; or
       ``(2) to reduce the authority of any other officer of the 
     Department to collect and disseminate data independently.
       ``(k) Prohibition on Certain Disclosures.--
       ``(1) In general.--An officer, employee, or contractor of 
     the Bureau may not--
       ``(A) make any disclosure in which the data provided by an 
     individual or organization under subsection (c) can be 
     identified;
       ``(B) use the information provided under subsection (c) for 
     a nonstatistical purpose; or
       ``(C) permit anyone other than an individual authorized by 
     the Director to examine any individual report provided under 
     subsection (c).
       ``(2) Copies of reports.--
       ``(A) In general.--No department, bureau, agency, officer, 
     or employee of the United States (except the Director in 
     carrying out this section) may require, for any reason, a 
     copy of any report that has been filed under subsection (c) 
     with the Bureau or retained by an individual respondent.
       ``(B) Limitation on judicial proceedings.--A copy of a 
     report described in subparagraph (A) that has been retained 
     by an individual respondent or filed with the Bureau or any 
     of its employees, contractors, or agents--
       ``(i) shall be immune from legal process; and
       ``(ii) shall not, without the consent of the individual 
     concerned, be admitted as evidence or used for any purpose in 
     any action, suit, or other judicial or administrative 
     proceedings.
       ``(C) Applicability.--This paragraph shall apply only to 
     reports that permit information concerning an individual or 
     organization to be reasonably determined by direct or 
     indirect means.
       ``(3) Informing respondent of use of data.--In a case in 
     which the Bureau is authorized by statute to collect data or 
     information for a nonstatistical purpose, the Director shall 
     clearly distinguish the collection of the data or 
     information, by rule and on the collection instrument, so as 
     to inform a respondent who is requested or required to supply 
     the data or information of the nonstatistical purpose.
       ``(l) Transportation Statistics Annual Report.--The 
     Director shall submit to the President and Congress a 
     transportation statistics annual report which shall include 
     information on items referred to in subsection (c)(5), 
     documentation of methods used to obtain and ensure the 
     quality of the statistics presented in the report, and 
     recommendations for improving transportation statistical 
     information.
       ``(m) Data Access.--The Director shall have access to 
     transportation and transportation-related information in the 
     possession of any Federal agency, except information--
       ``(1) the disclosure of which to another Federal agency is 
     expressly prohibited by law; or
       ``(2) the disclosure of which the agency possessing the 
     information determines would significantly impair the 
     discharge of authorities

[[Page H7412]]

     and responsibilities which have been delegated to, or vested 
     by law, in such agency.
       ``(n) Proceeds of Data Product Sales.--Notwithstanding 
     section 3302 of title 31, funds received by the Bureau from 
     the sale of data products, for necessary expenses incurred, 
     may be credited to the Highway Trust Fund (other than the 
     Mass Transit Account) for the purpose of reimbursing the 
     Bureau for the expenses.
       ``(o) Advisory Council on Transportation Statistics.--
       ``(1) Establishment.--The Director shall establish an 
     advisory council on transportation statistics.
       ``(2) Function.--The function of the advisory council 
     established under this subsection is to--
       ``(A) advise the Director on the quality, reliability, 
     consistency, objectivity, and relevance of transportation 
     statistics and analyses collected, supported, or disseminated 
     by the Bureau and the Department;
       ``(B) provide input to and review the report to Congress 
     under subsection (d)(4); and
       ``(C) advise the Director on methods to encourage 
     cooperation and interoperability of transportation data 
     collected by the Bureau, the operating administrations of the 
     Department, States, local governments, metropolitan planning 
     organizations, and private sector entities.
       ``(3) Membership.--The advisory council established under 
     this subsection shall be composed of not fewer than 9 and not 
     more than 11 members appointed by the Director, who are not 
     officers or employees of the United States. Each member shall 
     have expertise in transportation data collection or analysis 
     or application; except that 1 member shall have expertise in 
     economics, 1 member shall have expertise in statistics, and 1 
     member shall have experience in transportation safety. At 
     least 1 member shall be a senior official of a State 
     department of transportation. Members shall include 
     representation of a cross-section of transportation community 
     stakeholders.
       ``(4) Terms of appointment.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     members of the advisory council shall be appointed to 
     staggered terms not to exceed 3 years. A member may be 
     renominated for 1 additional 3-year term.
       ``(B) Current members.--Members serving on the Advisory 
     Council on Transportation Statistics as of the date of 
     enactment of the SAFETEA-LU shall serve until the end of 
     their appointed terms.
       ``(5) Applicability of federal advisory committee act.--The 
     Federal Advisory Committee Act shall apply to the Advisory 
     Council established under this subsection, except that 
     section 14 of such Act shall not apply.''.
         TITLE VI--TRANSPORTATION PLANNING AND PROJECT DELIVERY

     SEC. 6001. TRANSPORTATION PLANNING.

       (a) In General.--Sections 134 and 135 of title 23, United 
     States Code, are amended to read as follows:

     ``Sec. 134. Metropolitan transportation planning

       ``(a) Policy.--It is in the national interest to--
       ``(1) encourage and promote the safe and efficient 
     management, operation, and development of surface 
     transportation systems that will serve the mobility needs of 
     people and freight and foster economic growth and development 
     within and between States and urbanized areas, while 
     minimizing transportation-related fuel consumption and air 
     pollution through metropolitan and statewide transportation 
     planning processes identified in this chapter; and
       ``(2) encourage the continued improvement and evolution of 
     the metropolitan and statewide transportation planning 
     processes by metropolitan planning organizations, State 
     departments of transportation, and public transit operators 
     as guided by the planning factors identified in subsection 
     (h) and section 135(d).
       ``(b) Definitions.--In this section and section 135, the 
     following definitions apply:
       ``(1) Metropolitan planning area.--The term `metropolitan 
     planning area' means the geographic area determined by 
     agreement between the metropolitan planning organization for 
     the area and the Governor under subsection (e).
       ``(2) Metropolitan planning organization.--The term 
     `metropolitan planning organization' means the policy board 
     of an organization created as a result of the designation 
     process in subsection (d).
       ``(3) Nonmetropolitan area.--The term `nonmetropolitan 
     area' means a geographic area outside designated metropolitan 
     planning areas.
       ``(4) Nonmetropolitan local official.--The term 
     `nonmetropolitan local official' means elected and appointed 
     officials of general purpose local government in a 
     nonmetropolitan area with responsibility for transportation.
       ``(5) TIP.--The term `TIP' means a transportation 
     improvement program developed by a metropolitan planning 
     organization under subsection (j).
       ``(6) Urbanized area.--The term `urbanized area' means a 
     geographic area with a population of 50,000 or more, as 
     designated by the Bureau of the Census.
       ``(c) General Requirements.--
       ``(1) Development of long-range plans and tips.--To 
     accomplish the objectives in subsection (a), metropolitan 
     planning organizations designated under subsection (d), in 
     cooperation with the State and public transportation 
     operators, shall develop long-range transportation plans and 
     transportation improvement programs for metropolitan planning 
     areas of the State.
       ``(2) Contents.--The plans and TIPs for each metropolitan 
     area shall provide for the development and integrated 
     management and operation of transportation systems and 
     facilities (including accessible pedestrian walkways and 
     bicycle transportation facilities) that will function as an 
     intermodal transportation system for the metropolitan 
     planning area and as an integral part of an intermodal 
     transportation system for the State and the United States.
       ``(3) Process of development.--The process for developing 
     the plans and TIPs shall provide for consideration of all 
     modes of transportation and shall be continuing, cooperative, 
     and comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       ``(d) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process required by this section, a metropolitan planning 
     organization shall be designated for each urbanized area with 
     a population of more than 50,000 individuals--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that together represent at 
     least 75 percent of the affected population (including the 
     largest incorporated city (based on population) as named by 
     the Bureau of the Census); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Structure.--Each metropolitan planning organization 
     that serves an area designated as a transportation management 
     area, when designated or redesignated under this subsection, 
     shall consist of--
       ``(A) local elected officials;
       ``(B) officials of public agencies that administer or 
     operate major modes of transportation in the metropolitan 
     area; and
       ``(C) appropriate State officials.
       ``(3) Limitation on statutory construction.--Nothing in 
     this subsection shall be construed to interfere with the 
     authority, under any State law in effect on December 18, 
     1991, of a public agency with multimodal transportation 
     responsibilities to--
       ``(A) develop the plans and TIPs for adoption by a 
     metropolitan planning organization; and
       ``(B) develop long-range capital plans, coordinate transit 
     services and projects, and carry out other activities 
     pursuant to State law.
       ``(4) Continuing designation.--A designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       ``(5) Redesignation procedures.--A metropolitan planning 
     organization may be redesignated by agreement between the 
     Governor and units of general purpose local government that 
     together represent at least 75 percent of the existing 
     planning area population (including the largest incorporated 
     city (based on population) as named by the Bureau of the 
     Census) as appropriate to carry out this section.
       ``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be designated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and complexity 
     of the existing metropolitan planning area make designation 
     of more than 1 metropolitan planning organization for the 
     area appropriate.
       ``(e) Metropolitan Planning Area Boundaries.--
       ``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.
       ``(2) Included area.--Each metropolitan planning area--
       ``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period for the transportation plan; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Bureau of the Census.
       ``(3) Identification of new urbanized areas within existing 
     planning area boundaries.--The designation by the Bureau of 
     the Census of new urbanized areas within an existing 
     metropolitan planning area shall not require the 
     redesignation of the existing metropolitan planning 
     organization.
       ``(4) Existing metropolitan planning areas in 
     nonattainment.--Notwithstanding paragraph (2), in the case of 
     an urbanized area designated as a nonattainment area for 
     ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 
     7401 et seq.) as of the date of enactment of the SAFETEA-LU, 
     the boundaries of the metropolitan planning area in existence 
     as of such date of enactment shall be retained; except that 
     the boundaries may be adjusted by agreement of the Governor 
     and affected metropolitan planning organizations in the 
     manner described in subsection (d)(5).
       ``(5) New metropolitan planning areas in nonattainment.--In 
     the case of an urbanized area designated after the date of 
     enactment of the SAFETEA-LU, as a nonattainment area for 
     ozone or carbon monoxide, the boundaries of the metropolitan 
     planning area--
       ``(A) shall be established in the manner described in 
     subsection (d)(1);
       ``(B) shall encompass the areas described in paragraph 
     (2)(A);
       ``(C) may encompass the areas described in paragraph 
     (2)(B); and
       ``(D) may address any nonattainment area identified under 
     the Clean Air Act for ozone or carbon monoxide.
       ``(f) Coordination in Multistate Areas.--
       ``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       ``(2) Interstate compacts.--The consent of Congress is 
     granted to any 2 or more States--
       ``(A) to enter into agreements or compacts, not in conflict 
     with any law of the United States,

[[Page H7413]]

     for cooperative efforts and mutual assistance in support of 
     activities authorized under this section as the activities 
     pertain to interstate areas and localities within the States; 
     and
       ``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       ``(3) Lake tahoe region.--
       ``(A) Definition.--In this paragraph, the term `Lake Tahoe 
     region' has the meaning given the term `region' in 
     subdivision (a) of article II of the Tahoe Regional Planning 
     Compact, as set forth in the first section of Public Law 96-
     551 (94 Stat. 3234).
       ``(B) Transportation planning process.--The Secretary 
     shall--
       ``(i) establish with the Federal land management agencies 
     that have jurisdiction over land in the Lake Tahoe region a 
     transportation planning process for the region; and
       ``(ii) coordinate the transportation planning process with 
     the planning process required of State and local governments 
     under this section and section 135.
       ``(C) Interstate compact.--
       ``(i) In general.--Subject to clause (ii), and 
     notwithstanding subsection (b), to carry out the 
     transportation planning process required by this section, the 
     consent of Congress is granted to the States of California 
     and Nevada to designate a metropolitan planning organization 
     for the Lake Tahoe region, by agreement between the Governors 
     of the States of California and Nevada and units of general 
     purpose local government that together represent at least 75 
     percent of the affected population (including the central 
     city or cities (as defined by the Bureau of the Census)), or 
     in accordance with procedures established by applicable State 
     or local law.
       ``(ii) Involvement of federal land management agencies.--

       ``(I) Representation.--The policy board of a metropolitan 
     planning organization designated under clause (i) shall 
     include a representative of each Federal land management 
     agency that has jurisdiction over land in the Lake Tahoe 
     region.
       ``(II) Funding.--In addition to funds made available to the 
     metropolitan planning organization for the Lake Tahoe region 
     under other provisions of this title and under chapter 53 of 
     title 49, 1 percent of the funds allocated under section 202 
     shall be used to carry out the transportation planning 
     process for the Lake Tahoe region under this subparagraph.

       ``(D) Activities.--Highway projects included in 
     transportation plans developed under this paragraph--
       ``(i) shall be selected for funding in a manner that 
     facilitates the participation of the Federal land management 
     agencies that have jurisdiction over land in the Lake Tahoe 
     region; and
       ``(ii) may, in accordance with chapter 2, be funded using 
     funds allocated under section 202.
       ``(4) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(g) MPO Consultation in Plan and TIP Coordination.--
       ``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act, each 
     metropolitan planning organization shall consult with the 
     other metropolitan planning organizations designated for such 
     area and the State in the coordination of plans and TIPs 
     required by this section.
       ``(2) Transportation improvements located in multiple 
     mpos.--If a transportation improvement, funded from the 
     Highway Trust Fund or authorized under chapter 53 of title 
     49, is located within the boundaries of more than 1 
     metropolitan planning area, the metropolitan planning 
     organizations shall coordinate plans and TIPs regarding the 
     transportation improvement.
       ``(3) Relationship with other planning officials.--The 
     Secretary shall encourage each metropolitan planning 
     organization to consult with officials responsible for other 
     types of planning activities that are affected by 
     transportation in the area (including State and local planned 
     growth, economic development, environmental protection, 
     airport operations, and freight movements) or to coordinate 
     its planning process, to the maximum extent practicable, with 
     such planning activities. Under the metropolitan planning 
     process, transportation plans and TIPs shall be developed 
     with due consideration of other related planning activities 
     within the metropolitan area, and the process shall provide 
     for the design and delivery of transportation services within 
     the metropolitan area that are provided by--
       ``(A) recipients of assistance under chapter 53 of title 
     49;
       ``(B) governmental agencies and nonprofit organizations 
     (including representatives of the agencies and organizations) 
     that receive Federal assistance from a source other than the 
     Department of Transportation to provide nonemergency 
     transportation services; and
       ``(C) recipients of assistance under section 204.
       ``(h) Scope of Planning Process.--
       ``(1) In general.--The metropolitan planning process for a 
     metropolitan planning area under this section shall provide 
     for consideration of projects and strategies that will--
       ``(A) support the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     for freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between transportation improvements and State and 
     local planned growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Failure to consider factors.--The failure to consider 
     any factor specified in paragraph (1) shall not be reviewable 
     by any court under this title or chapter 53 of title 49, 
     subchapter II of chapter 5 of title 5, or chapter 7 of title 
     5 in any matter affecting a transportation plan, a TIP, a 
     project or strategy, or the certification of a planning 
     process.
       ``(i) Development of Transportation Plan.--
       ``(1) In general.--Each metropolitan planning organization 
     shall prepare and update a transportation plan for its 
     metropolitan planning area in accordance with the 
     requirements of this subsection. The metropolitan planning 
     organization shall prepare and update such plan every 4 years 
     (or more frequently, if the metropolitan planning 
     organization elects to update more frequently) in the case of 
     each of the following:
       ``(A) Any area designated as nonattainment, as defined in 
     section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)).
       ``(B) Any area that was nonattainment and subsequently 
     designated to attainment in accordance with section 107(d)(3) 
     of that Act (42 U.S.C. 7407(d)(3)) and that is subject to a 
     maintenance plan under section 175A of that Act (42 U.S.C. 
     7505a).

     In the case of any other area required to have a 
     transportation plan in accordance with the requirements of 
     this subsection, the metropolitan planning organization shall 
     prepare and update such plan every 5 years unless the 
     metropolitan planning organization elects to update more 
     frequently.
       ``(2) Transportation plan.--A transportation plan under 
     this section shall be in a form that the Secretary determines 
     to be appropriate and shall contain, at a minimum, the 
     following:
       ``(A) Identification of transportation facilities.--An 
     identification of transportation facilities (including major 
     roadways, transit, multimodal and intermodal facilities, and 
     intermodal connectors) that should function as an integrated 
     metropolitan transportation system, giving emphasis to those 
     facilities that serve important national and regional 
     transportation functions. In formulating the transportation 
     plan, the metropolitan planning organization shall consider 
     factors described in subsection (h) as such factors relate to 
     a 20-year forecast period.
       ``(B) Mitigation activities.--
       ``(i) In general.--A long-range transportation plan shall 
     include a discussion of types of potential environmental 
     mitigation activities and potential areas to carry out these 
     activities, including activities that may have the greatest 
     potential to restore and maintain the environmental functions 
     affected by the plan.
       ``(ii) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(C) Financial plan.--A financial plan that demonstrates 
     how the adopted transportation plan can be implemented, 
     indicates resources from public and private sources that are 
     reasonably expected to be made available to carry out the 
     plan, and recommends any additional financing strategies for 
     needed projects and programs. The financial plan may include, 
     for illustrative purposes, additional projects that would be 
     included in the adopted transportation plan if reasonable 
     additional resources beyond those identified in the financial 
     plan were available. For the purpose of developing the 
     transportation plan, the metropolitan planning organization, 
     transit operator, and State shall cooperatively develop 
     estimates of funds that will be available to support plan 
     implementation.
       ``(D) Operational and management strategies.--Operational 
     and management strategies to improve the performance of 
     existing transportation facilities to relieve vehicular 
     congestion and maximize the safety and mobility of people and 
     goods.
       ``(E) Capital investment and other strategies.--Capital 
     investment and other strategies to preserve the existing and 
     projected future metropolitan transportation infrastructure 
     and provide for multimodal capacity increases based on 
     regional priorities and needs.
       ``(F) Transportation and transit enhancement activities.--
     Proposed transportation and transit enhancement activities.
       ``(3) Coordination with clean air act agencies.--In 
     metropolitan areas which are in nonattainment for ozone or 
     carbon monoxide under the Clean Air Act, the metropolitan 
     planning organization shall coordinate the development of a 
     transportation plan with the process for development of the 
     transportation control measures of the State implementation 
     plan required by the Clean Air Act.
       ``(4) Consultation.--
       ``(A) In general.--In each metropolitan area, the 
     metropolitan planning organization shall consult, as 
     appropriate, with State and local agencies responsible for 
     land use management, natural resources, environmental 
     protection, conservation, and historic preservation 
     concerning the development of a long-range transportation 
     plan.
       ``(B) Issues.--The consultation shall involve, as 
     appropriate--
       ``(i) comparison of transportation plans with State 
     conservation plans or maps, if available; or

[[Page H7414]]

       ``(ii) comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(5) Participation by interested parties.--
       ``(A) In general.--Each metropolitan planning organization 
     shall provide citizens, affected public agencies, 
     representatives of public transportation employees, freight 
     shippers, providers of freight transportation services, 
     private providers of transportation, representatives of users 
     of public transportation, representatives of users of 
     pedestrian walkways and bicycle transportation facilities, 
     representatives of the disabled, and other interested parties 
     with a reasonable opportunity to comment on the 
     transportation plan.
       ``(B) Contents of participation plan.--A participation 
     plan--
       ``(i) shall be developed in consultation with all 
     interested parties; and
       ``(ii) shall provide that all interested parties have 
     reasonable opportunities to comment on the contents of the 
     transportation plan.
       ``(C) Methods.--In carrying out subparagraph (A), the 
     metropolitan planning organization shall, to the maximum 
     extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford reasonable opportunity for 
     consideration of public information under subparagraph (A).
       ``(6) Publication.--A transportation plan involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review, including (to the maximum extent practicable) 
     in electronically accessible formats and means, such as the 
     World Wide Web, approved by the metropolitan planning 
     organization and submitted for information purposes to the 
     Governor at such times and in such manner as the Secretary 
     shall establish.
       ``(7) Selection of projects from illustrative list.--
     Notwithstanding paragraph (2)(C), a State or metropolitan 
     planning organization shall not be required to select any 
     project from the illustrative list of additional projects 
     included in the financial plan under paragraph (2)(C).
       ``(j) Metropolitan TIP.--
       ``(1) Development.--
       ``(A) In general.--In cooperation with the State and any 
     affected public transportation operator, the metropolitan 
     planning organization designated for a metropolitan area 
     shall develop a TIP for the area for which the organization 
     is designated.
       ``(B) Opportunity for comment.--In developing the TIP, the 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(C) Funding estimates.--For the purpose of developing the 
     TIP, the metropolitan planning organization, public 
     transportation agency, and State shall cooperatively develop 
     estimates of funds that are reasonably expected to be 
     available to support program implementation.
       ``(D) Updating and approval.--The TIP shall be updated at 
     least once every 4 years and shall be approved by the 
     metropolitan planning organization and the Governor.
       ``(2) Contents.--
       ``(A) Priority list.--The TIP shall include a priority list 
     of proposed federally supported projects and strategies to be 
     carried out within each 4-year period after the initial 
     adoption of the TIP.
       ``(B) Financial plan.--The TIP shall include a financial 
     plan that--
       ``(i) demonstrates how the TIP can be implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be available to carry out the 
     program;
       ``(iii) identifies innovative financing techniques to 
     finance projects, programs, and strategies; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the approved TIP if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(C) Descriptions.--Each project in the TIP shall include 
     sufficient descriptive material (such as type of work, 
     termini, length, and other similar factors) to identify the 
     project or phase of the project.
       ``(3) Included projects.--
       ``(A) Projects under this title and chapter 53 of title 
     49.--A TIP developed under this subsection for a metropolitan 
     area shall include the projects within the area that are 
     proposed for funding under chapter 1 of this title and 
     chapter 53 of title 49.
       ``(B) Projects under chapter 2.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 
     shall be identified individually in the transportation 
     improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 that are not determined to be regionally 
     significant shall be grouped in 1 line item or identified 
     individually in the transportation improvement program.
       ``(C) Consistency with long-range transportation plan.--
     Each project shall be consistent with the long-range 
     transportation plan developed under subsection (i) for the 
     area.
       ``(D) Requirement of anticipated full funding.--The program 
     shall include a project, or an identified phase of a project, 
     only if full funding can reasonably be anticipated to be 
     available for the project within the time period contemplated 
     for completion of the project.
       ``(4) Notice and comment.--Before approving a TIP, a 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(5) Selection of projects.--
       ``(A) In general.--Except as otherwise provided in 
     subsection (k)(4) and in addition to the TIP development 
     required under paragraph (1), the selection of federally 
     funded projects in metropolitan areas shall be carried out, 
     from the approved TIP--
       ``(i) by--

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

       ``(ii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved TIP 
     in place of another project in the program.
       ``(6) Selection of projects from illustrative list.--
       ``(A) No required selection.--Notwithstanding paragraph 
     (2)(B)(iv), a State or metropolitan planning organization 
     shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv).
       ``(B) Required action by the secretary.--Action by the 
     Secretary shall be required for a State or metropolitan 
     planning organization to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv) for inclusion in an 
     approved TIP.
       ``(7) Publication.--
       ``(A) Publication of tips.--A TIP involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review.
       ``(B) Publication of annual listings of projects.--An 
     annual listing of projects, including investments in 
     pedestrian walkways and bicycle transportation facilities, 
     for which Federal funds have been obligated in the preceding 
     year shall be published or otherwise made available by the 
     cooperative effort of the State, transit operator, and 
     metropolitan planning organization for public review. The 
     listing shall be consistent with the categories identified in 
     the TIP.
       ``(k) Transportation Management Areas.--
       ``(1) Identification and designation.--
       ``(A) Required identification.--The Secretary shall 
     identify as a transportation management area each urbanized 
     area (as defined by the Bureau of the Census) with a 
     population of over 200,000 individuals.
       ``(B) Designations on request.--The Secretary shall 
     designate any additional area as a transportation management 
     area on the request of the Governor and the metropolitan 
     planning organization designated for the area.
       ``(2) Transportation plans.--In a metropolitan planning 
     area serving a transportation management area, transportation 
     plans shall be based on a continuing and comprehensive 
     transportation planning process carried out by the 
     metropolitan planning organization in cooperation with the 
     State and public transportation operators.
       ``(3) Congestion management process.--Within a metropolitan 
     planning area serving a transportation management area, the 
     transportation planning process under this section shall 
     address congestion management through a process that provides 
     for effective management and operation, based on a 
     cooperatively developed and implemented metropolitan-wide 
     strategy, of new and existing transportation facilities 
     eligible for funding under this title and chapter 53 of title 
     49 through the use of travel demand reduction and operational 
     management strategies. The Secretary shall establish an 
     appropriate phase-in schedule for compliance with the 
     requirements of this section but no sooner than 1 year after 
     the identification of a transportation management area.
       ``(4) Selection of projects.--
       ``(A) In general.--All federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under this title 
     (excluding projects carried out on the National Highway 
     System and projects carried out under the bridge program or 
     the Interstate maintenance program) or under chapter 53 of 
     title 49 shall be selected for implementation from the 
     approved TIP by the metropolitan planning organization 
     designated for the area in consultation with the State and 
     any affected public transportation operator.
       ``(B) National highway system projects.--Projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area on the National 
     Highway System and projects carried out within such 
     boundaries under the bridge program or the Interstate 
     maintenance program under this title shall be selected for 
     implementation from the approved TIP by the State in 
     cooperation with the metropolitan planning organization 
     designated for the area.
       ``(5) Certification.--
       ``(A) In general.--The Secretary shall--
       ``(i) ensure that the metropolitan planning process of a 
     metropolitan planning organization serving a transportation 
     management area is being carried out in accordance with 
     applicable provisions of Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less often 
     than once every 4 years, that the requirements of this 
     paragraph are met with respect to the metropolitan planning 
     process.
       ``(B) Requirements for certification.--The Secretary may 
     make the certification under subparagraph (A) if--

[[Page H7415]]

       ``(i) the transportation planning process complies with the 
     requirements of this section and other applicable 
     requirements of Federal law; and
       ``(ii) there is a TIP for the metropolitan planning area 
     that has been approved by the metropolitan planning 
     organization and the Governor.
       ``(C) Effect of failure to certify.--
       ``(i) Withholding of project funds.--If a metropolitan 
     planning process of a metropolitan planning organization 
     serving a transportation management area is not certified, 
     the Secretary may withhold up to 20 percent of the funds 
     attributable to the metropolitan planning area of the 
     metropolitan planning organization for projects funded under 
     this title and chapter 53 of title 49.
       ``(ii) Restoration of withheld funds.--The withheld funds 
     shall be restored to the metropolitan planning area at such 
     time as the metropolitan planning process is certified by the 
     Secretary.
       ``(D) Review of certification.--In making certification 
     determinations under this paragraph, the Secretary shall 
     provide for public involvement appropriate to the 
     metropolitan area under review.
       ``(l) Abbreviated Plans for Certain Areas.--
       ``(1) In general.--Subject to paragraph (2), in the case of 
     a metropolitan area not designated as a transportation 
     management area under this section, the Secretary may provide 
     for the development of an abbreviated transportation plan and 
     TIP for the metropolitan planning area that the Secretary 
     determines is appropriate to achieve the purposes of this 
     section, taking into account the complexity of transportation 
     problems in the area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans or TIPs for a metropolitan area that is in 
     nonattainment for ozone or carbon monoxide under the Clean 
     Air Act.
       ``(m) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provisions of 
     this title or chapter 53 of title 49, for transportation 
     management areas classified as nonattainment for ozone or 
     carbon monoxide pursuant to the Clean Air Act, Federal funds 
     may not be advanced in such area for any highway project that 
     will result in a significant increase in the carrying 
     capacity for single-occupant vehicles unless the project is 
     addressed through a congestion management process.
       ``(2) Applicability.--This subsection applies to a 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (e).
       ``(n) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed to confer on a metropolitan 
     planning organization the authority to impose legal 
     requirements on any transportation facility, provider, or 
     project not eligible under this title or chapter 53 of title 
     49.
       ``(o) Funding.--Funds set aside under section 104(f) of 
     this title or section 5305(g) of title 49 shall be available 
     to carry out this section.
       ``(p) Continuation of Current Review Practice.--Since plans 
     and TIPs described in this section are subject to a 
     reasonable opportunity for public comment, since individual 
     projects included in plans and TIPs are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning plans and TIPs described in this section have not 
     been reviewed under such Act as of January 1, 1997, any 
     decision by the Secretary concerning a plan or TIP described 
     in this section shall not be considered to be a Federal 
     action subject to review under such Act.

     ``Sec. 135. Statewide transportation planning

       ``(a) General Requirements.--
       ``(1) Development of plans and programs.--To accomplish the 
     objectives stated in section 134(a), each State shall develop 
     a statewide transportation plan and a statewide 
     transportation improvement program for all areas of the 
     State, subject to section 134.
       ``(2) Contents.--The statewide transportation plan and the 
     transportation improvement program developed for each State 
     shall provide for the development and integrated management 
     and operation of transportation systems and facilities 
     (including accessible pedestrian walkways and bicycle 
     transportation facilities) that will function as an 
     intermodal transportation system for the State and an 
     integral part of an intermodal transportation system for the 
     United States.
       ``(3) Process of development.--The process for developing 
     the statewide plan and the transportation improvement program 
     shall provide for consideration of all modes of 
     transportation and the policies stated in section 134(a), and 
     shall be continuing, cooperative, and comprehensive to the 
     degree appropriate, based on the complexity of the 
     transportation problems to be addressed.
       ``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--A State shall--
       ``(1) coordinate planning carried out under this section 
     with the transportation planning activities carried out under 
     section 134 for metropolitan areas of the State and with 
     statewide trade and economic development planning activities 
     and related multistate planning efforts; and
       ``(2) develop the transportation portion of the State 
     implementation plan as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Interstate Agreements.--
       ``(1) In general.--The consent of Congress is granted to 2 
     or more States entering into agreements or compacts, not in 
     conflict with any law of the United States, for cooperative 
     efforts and mutual assistance in support of activities 
     authorized under this section related to interstate areas and 
     localities in the States and establishing authorities the 
     States consider desirable for making the agreements and 
     compacts effective.
       ``(2) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(d) Scope of Planning Process.--
       ``(1) In general.--Each State shall carry out a statewide 
     transportation planning process that provides for 
     consideration and implementation of projects, strategies, and 
     services that will--
       ``(A) support the economic vitality of the United States, 
     the States, nonmetropolitan areas, and metropolitan areas, 
     especially by enabling global competitiveness, productivity, 
     and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between transportation improvements and State and 
     local planned growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes throughout 
     the State, for people and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Failure to consider factors.--The failure to consider 
     any factor specified in paragraph (1) shall not be reviewable 
     by any court under this title or chapter 53 of title 49, 
     subchapter II of chapter 5 of title 5, or chapter 7 of title 
     5 in any matter affecting a statewide transportation plan, 
     the transportation improvement program, a project or 
     strategy, or the certification of a planning process.
       ``(e) Additional Requirements.--In carrying out planning 
     under this section, each State shall consider, at a minimum--
       ``(1) with respect to nonmetropolitan areas, the concerns 
     of affected local officials with responsibility for 
     transportation;
       ``(2) the concerns of Indian tribal governments and Federal 
     land management agencies that have jurisdiction over land 
     within the boundaries of the State; and
       ``(3) coordination of transportation plans, the 
     transportation improvement program, and planning activities 
     with related planning activities being carried out outside of 
     metropolitan planning areas and between States.
       ``(f) Long-Range Statewide Transportation Plan.--
       ``(1) Development.--Each State shall develop a long-range 
     statewide transportation plan, with a minimum 20-year 
     forecast period for all areas of the State, that provides for 
     the development and implementation of the intermodal 
     transportation system of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--The statewide transportation 
     plan shall be developed for each metropolitan area in the 
     State in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 134.
       ``(B) Nonmetropolitan areas.--With respect to 
     nonmetropolitan areas, the statewide transportation plan 
     shall be developed in consultation with affected 
     nonmetropolitan officials with responsibility for 
     transportation. The Secretary shall not review or approve the 
     consultation process in each State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the statewide transportation plan shall be 
     developed in consultation with the tribal government and the 
     Secretary of the Interior.
       ``(D) Consultation, comparison, and consideration.--
       ``(i) In general.--The long-range transportation plan shall 
     be developed, as appropriate, in consultation with State, 
     tribal, and local agencies responsible for land use 
     management, natural resources, environmental protection, 
     conservation, and historic preservation.
       ``(ii) Comparison and consideration.--Consultation under 
     clause (i) shall involve comparison of transportation plans 
     to State and tribal conservation plans or maps, if available, 
     and comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(3) Participation by interested parties.--
       ``(A) In general.--In developing the statewide 
     transportation plan, the State shall provide citizens, 
     affected public agencies, representatives of public 
     transportation employees, freight shippers, private providers 
     of transportation, representatives of users of public 
     transportation, representatives of users of pedestrian 
     walkways and bicycle transportation facilities, 
     representatives of the disabled, providers of freight 
     transportation services, and other interested parties with a 
     reasonable opportunity to comment on the proposed plan.
       ``(B) Methods.--In carrying out subparagraph (A), the State 
     shall, to the maximum extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford

[[Page H7416]]

     reasonable opportunity for consideration of public 
     information under subparagraph (A).
       ``(4) Mitigation activities.--
       ``(A) In general.--A long-range transportation plan shall 
     include a discussion of potential environmental mitigation 
     activities and potential areas to carry out these activities, 
     including activities that may have the greatest potential to 
     restore and maintain the environmental functions affected by 
     the plan.
       ``(B) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(5) Financial plan.--The statewide transportation plan 
     may include a financial plan that demonstrates how the 
     adopted statewide transportation plan can be implemented, 
     indicates resources from public and private sources that are 
     reasonably expected to be made available to carry out the 
     plan, and recommends any additional financing strategies for 
     needed projects and programs. The financial plan may include, 
     for illustrative purposes, additional projects that would be 
     included in the adopted statewide transportation plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(6) Selection of projects from illustrative list.--A 
     State shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan described in paragraph (5).
       ``(7) Existing system.--The statewide transportation plan 
     should include capital, operations and management strategies, 
     investments, procedures, and other measures to ensure the 
     preservation and most efficient use of the existing 
     transportation system.
       ``(8) Publication of long-range transportation plans.--Each 
     long-range transportation plan prepared by a State shall be 
     published or otherwise made available, including (to the 
     maximum extent practicable) in electronically accessible 
     formats and means, such as the World Wide Web.
       ``(g) Statewide Transportation Improvement Program.--
       ``(1) Development.--Each State shall develop a statewide 
     transportation improvement program for all areas of the 
     State. Such program shall cover a period of 4 years and be 
     updated every 4 years or more frequently if the Governor 
     elects to update more frequently.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--With respect to each 
     metropolitan area in the State, the program shall be 
     developed in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 134.
       ``(B) Nonmetropolitan areas.--With respect to each 
     nonmetropolitan area in the State, the program shall be 
     developed in consultation with affected nonmetropolitan local 
     officials with responsibility for transportation. The 
     Secretary shall not review or approve the specific 
     consultation process in the State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the program shall be developed in consultation 
     with the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public transportation, 
     representatives of users of pedestrian walkways and bicycle 
     transportation facilities, representatives of the disabled, 
     and other interested parties with a reasonable opportunity to 
     comment on the proposed program.
       ``(4) Included projects.--
       ``(A) In general.--A transportation improvement program 
     developed under this subsection for a State shall include 
     federally supported surface transportation expenditures 
     within the boundaries of the State.
       ``(B) Listing of projects.--An annual listing of projects 
     for which funds have been obligated in the preceding year in 
     each metropolitan planning area shall be published or 
     otherwise made available by the cooperative effort of the 
     State, transit operator, and the metropolitan planning 
     organization for public review. The listing shall be 
     consistent with the funding categories identified in each 
     metropolitan transportation improvement program.
       ``(C) Projects under chapter 2.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 
     shall be identified individually in the transportation 
     improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 that are not determined to be regionally 
     significant shall be grouped in 1 line item or identified 
     individually in the transportation improvement program.
       ``(D) Consistency with statewide transportation plan.--Each 
     project shall be--
       ``(i) consistent with the statewide transportation plan 
     developed under this section for the State;
       ``(ii) identical to the project or phase of the project as 
     described in an approved metropolitan transportation plan; 
     and
       ``(iii) in conformance with the applicable State air 
     quality implementation plan developed under the Clean Air 
     Act, if the project is carried out in an area designated as 
     nonattainment for ozone, particulate matter, or carbon 
     monoxide under such Act.
       ``(E) Requirement of anticipated full funding.--The 
     transportation improvement program shall include a project, 
     or an identified phase of a project, only if full funding can 
     reasonably be anticipated to be available for the project 
     within the time period contemplated for completion of the 
     project.
       ``(F) Financial plan.--The transportation improvement 
     program may include a financial plan that demonstrates how 
     the approved transportation improvement program can be 
     implemented, indicates resources from public and private 
     sources that are reasonably expected to be made available to 
     carry out the transportation improvement program, and 
     recommends any additional financing strategies for needed 
     projects and programs. The financial plan may include, for 
     illustrative purposes, additional projects that would be 
     included in the adopted transportation plan if reasonable 
     additional resources beyond those identified in the financial 
     plan were available.
       ``(G) Selection of projects from illustrative list.--
       ``(i) No required selection.--Notwithstanding subparagraph 
     (F), a State shall not be required to select any project from 
     the illustrative list of additional projects included in the 
     financial plan under subparagraph (F).
       ``(ii) Required action by the secretary.--Action by the 
     Secretary shall be required for a State to select any project 
     from the illustrative list of additional projects included in 
     the financial plan under subparagraph (F) for inclusion in an 
     approved transportation improvement program.
       ``(H) Priorities.--The transportation improvement program 
     shall reflect the priorities for programming and expenditures 
     of funds, including transportation enhancement activities, 
     required by this title and chapter 53 of title 49.
       ``(5) Project selection for areas of less than 50,000 
     population.--Projects carried out in areas with populations 
     of less than 50,000 individuals shall be selected, from the 
     approved transportation improvement program (excluding 
     projects carried out on the National Highway System and 
     projects carried out under the bridge program or the 
     Interstate maintenance program under this title or under 
     sections 5310, 5311, 5316, and 5317 of title 49), by the 
     State in cooperation with the affected nonmetropolitan local 
     officials with responsibility for transportation. Projects 
     carried out in areas with populations of less than 50,000 
     individuals on the National Highway System or under the 
     bridge program or the Interstate maintenance program under 
     this title or under sections 5310, 5311, 5316, and 5317 of 
     title 49 shall be selected, from the approved statewide 
     transportation improvement program, by the State in 
     consultation with the affected nonmetropolitan local 
     officials with responsibility for transportation.
       ``(6) Transportation improvement program approval.--Every 4 
     years, a transportation improvement program developed under 
     this subsection shall be reviewed and approved by the 
     Secretary if based on a current planning finding.
       ``(7) Planning finding.--A finding shall be made by the 
     Secretary at least every 4 years that the transportation 
     planning process through which statewide transportation plans 
     and programs are developed is consistent with this section 
     and section 134.
       ``(8) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved 
     transportation improvement program in place of another 
     project in the program.
       ``(h) Funding.--Funds set aside pursuant to section 104(f) 
     of this title and section 5305(g) of title 49, shall be 
     available to carry out this section.
       ``(i) Treatment of Certain State Laws as Congestion 
     Management Processes.--For purposes of this section and 
     section 134, and sections 5303 and 5304 of title 49, State 
     laws, rules, or regulations pertaining to congestion 
     management systems or programs may constitute the congestion 
     management process under this section and section 134, and 
     sections 5303 and 5304 of title 49, if the Secretary finds 
     that the State laws, rules, or regulations are consistent 
     with, and fulfill the intent of, the purposes of this section 
     and section 134 and sections 5303 and 5304 of title 49, as 
     appropriate.
       ``(j) Continuation of Current Review Practice.--Since the 
     statewide transportation plan and the transportation 
     improvement program described in this section are subject to 
     a reasonable opportunity for public comment, since individual 
     projects included in the statewide transportation plans and 
     the transportation improvement program are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning statewide transportation plans or the 
     transportation improvement program described in this section 
     have not been reviewed under such Act as of January 1, 1997, 
     any decision by the Secretary concerning a metropolitan or 
     statewide transportation plan or the transportation 
     improvement program described in this section shall not be 
     considered to be a Federal action subject to review under 
     such Act.''.
       (b) Schedule for Implementation.--The Secretary shall issue 
     guidance on a schedule for implementation of the changes made 
     by this section, taking into consideration the established 
     planning update cycle for States and metropolitan planning 
     organizations. The Secretary shall not require a State or 
     metropolitan planning organization to deviate from its 
     established planning update cycle to implement changes made 
     by this section. Beginning July 1, 2007, State or 
     metropolitan planning organization plan or program updates 
     shall reflect changes made by this section.
       (c) Conforming Amendment.--The analysis for chapter 1 of 
     such title is amended by striking the items relating to 
     sections 134 and 135 and inserting the following:

``134. Metropolitan transportation planning.
``135. Statewide transportation planning.''.

[[Page H7417]]

     SEC. 6002. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT 
                   DECISIONMAKING.

       (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. Efficient environmental reviews for project 
       decisionmaking

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Agency.--The term `agency' means any agency, 
     department, or other unit of Federal, State, local, or Indian 
     tribal government.
       ``(2) Environmental impact statement.--The term 
     `environmental impact statement' means the detailed statement 
     of environmental impacts required to be prepared under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       ``(3) Environmental review process.--
       ``(A) In general.--The term `environmental review process' 
     means the process for preparing for a project an 
     environmental impact statement, environmental assessment, 
     categorical exclusion, or other document prepared under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       ``(B) Inclusions.--The term `environmental review process' 
     includes the process for and completion of any environmental 
     permit, approval, review, or study required for a project 
     under any Federal law other than the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       ``(4) Lead agency.--The term `lead agency' means the 
     Department of Transportation and, if applicable, any State or 
     local governmental entity serving as a joint lead agency 
     pursuant to this section.
       ``(5) Multimodal project.--The term `multimodal project' 
     means a project funded, in whole or in part, under this title 
     or chapter 53 of title 49 and involving the participation of 
     more than one Department of Transportation administration or 
     agency.
       ``(6) Project.--The term `project' means any highway 
     project, public transportation capital project, or multimodal 
     project that requires the approval of the Secretary.
       ``(7) Project sponsor.--The term `project sponsor' means 
     the agency or other entity, including any private or public-
     private entity, that seeks approval of the Secretary for a 
     project.
       ``(8) State transportation department.--The term `State 
     transportation department' means any statewide agency of a 
     State with responsibility for one or more modes of 
     transportation.
       ``(b) Applicability.--
       ``(1) In general.--The project development procedures in 
     this section are applicable to all projects for which an 
     environmental impact statement is prepared under the National 
     Environmental Policy Act of 1969 and may be applied, to the 
     extent determined appropriate by the Secretary, to other 
     projects for which an environmental document is prepared 
     pursuant to such Act.
       ``(2) Flexibility.--Any authorities granted in this section 
     may be exercised for a project, class of projects, or program 
     of projects.
       ``(c) Lead Agencies.--
       ``(1) Federal lead agency.--The Department of 
     Transportation shall be the Federal lead agency in the 
     environmental review process for a project.
       ``(2) Joint lead agencies.--Nothing in this section 
     precludes another agency from being a joint lead agency in 
     accordance with regulations under the National Environmental 
     Policy Act of 1969.
       ``(3) Project sponsor as joint lead agency.--Any project 
     sponsor that is a State or local governmental entity 
     receiving funds under this title or chapter 53 of title 49 
     for the project shall serve as a joint lead agency with the 
     Department for purposes of preparing any environmental 
     document under the National Environmental Policy Act of 1969 
     and may prepare any such environmental document required in 
     support of any action or approval by the Secretary if the 
     Federal lead agency furnishes guidance in such preparation 
     and independently evaluates such document and the document is 
     approved and adopted by the Secretary prior to the Secretary 
     taking any subsequent action or making any approval based on 
     such document, whether or not the Secretary's action or 
     approval results in Federal funding.
       ``(4) Ensuring compliance.--The Secretary shall ensure that 
     the project sponsor complies with all design and mitigation 
     commitments made jointly by the Secretary and the project 
     sponsor in any environmental document prepared by the project 
     sponsor in accordance with this subsection and that such 
     document is appropriately supplemented if project changes 
     become necessary.
       ``(5) Adoption and use of documents.--Any environmental 
     document prepared in accordance with this subsection may be 
     adopted or used by any Federal agency making any approval to 
     the same extent that such Federal agency could adopt or use a 
     document prepared by another Federal agency.
       ``(6) Roles and responsibility of lead agency.--With 
     respect to the environmental review process for any project, 
     the lead agency shall have authority and responsibility--
       ``(A) to take such actions as are necessary and proper, 
     within the authority of the lead agency, to facilitate the 
     expeditious resolution of the environmental review process 
     for the project; and
       ``(B) to prepare or ensure that any required environmental 
     impact statement or other document required to be completed 
     under the National Environmental Policy Act of 1969 is 
     completed in accordance with this section and applicable 
     Federal law.
       ``(d) Participating Agencies.--
       ``(1) In general.--The lead agency shall be responsible for 
     inviting and designating participating agencies in accordance 
     with this subsection.
       ``(2) Invitation.--The lead agency shall identify, as early 
     as practicable in the environmental review process for a 
     project, any other Federal and non-Federal agencies that may 
     have an interest in the project, and shall invite such 
     agencies to become participating agencies in the 
     environmental review process for the project. The invitation 
     shall set a deadline for responses to be submitted. The 
     deadline may be extended by the lead agency for good cause.
       ``(3) Federal participating agencies.--Any Federal agency 
     that is invited by the lead agency to participate in the 
     environmental review process for a project shall be 
     designated as a participating agency by the lead agency 
     unless the invited agency informs the lead agency, in 
     writing, by the deadline specified in the invitation that the 
     invited agency--
       ``(A) has no jurisdiction or authority with respect to the 
     project;
       ``(B) has no expertise or information relevant to the 
     project; and
       ``(C) does not intend to submit comments on the project.
       ``(4) Effect of designation.--Designation as a 
     participating agency under this subsection shall not imply 
     that the participating agency--
       ``(A) supports a proposed project; or
       ``(B) has any jurisdiction over, or special expertise with 
     respect to evaluation of, the project.
       ``(5) Cooperating agency.--A participating agency may also 
     be designated by a lead agency as a `cooperating agency' 
     under the regulations con tained in part 1500 of title 40, 
     Code of Federal Regulations.
       ``(6) Designations for categories of projects.--The 
     Secretary may exercise the authorities granted under this 
     subsection for a project, class of projects, or program of 
     projects.
       ``(7) Concurrent reviews.--Each Federal agency shall, to 
     the maximum extent practicable--
       ``(A) carry out obligations of the Federal agency under 
     other applicable law concurrently, and in conjunction, with 
     the review required under the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.), unless doing so would 
     impair the ability of the Federal agency to carry out those 
     obligations; and
       ``(B) formulate and implement administrative, policy, and 
     procedural mechanisms to enable the agency to ensure 
     completion of the environmental review process in a timely, 
     coordinated, and environmentally responsible manner.
       ``(e) Project Initiation.--The project sponsor shall notify 
     the Secretary of the type of work, termini, length and 
     general location of the proposed project, together with a 
     statement of any Federal approvals anticipated to be 
     necessary for the proposed project, for the purpose of 
     informing the Secretary that the environmental review process 
     should be initiated.
       ``(f) Purpose and Need.--
       ``(1) Participation.--As early as practicable during the 
     environmental review process, the lead agency shall provide 
     an opportunity for involvement by participating agencies and 
     the public in defining the purpose and need for a project.
       ``(2) Definition.--Following participation under paragraph 
     (1), the lead agency shall define the project's purpose and 
     need for purposes of any document which the lead agency is 
     responsible for preparing for the project.
       ``(3) Objectives.--The statement of purpose and need shall 
     include a clear statement of the objectives that the proposed 
     action is intended to achieve, which may include--
       ``(A) achieving a transportation objective identified in an 
     applicable statewide or metropolitan transportation plan;
       ``(B) supporting land use, economic development, or growth 
     objectives established in applicable Federal, State, local, 
     or tribal plans; and
       ``(C) serving national defense, national security, or other 
     national objectives, as established in Federal laws, plans, 
     or policies.
       ``(4) Alternatives analysis.--
       ``(A) Participation.--As early as practicable during the 
     environmental review process, the lead agency shall provide 
     an opportunity for involvement by participating agencies and 
     the public in determining the range of alternatives to be 
     considered for a project.
       ``(B) Range of alternatives.--Following participation under 
     paragraph (1), the lead agency shall determine the range of 
     alternatives for consideration in any document which the lead 
     agency is responsible for preparing for the project.
       ``(C) Methodologies.--The lead agency also shall determine, 
     in collaboration with participating agencies at appropriate 
     times during the study process, the methodologies to be used 
     and the level of detail required in the analysis of each 
     alternative for a project.
       ``(D) Preferred alternative.--At the discretion of the lead 
     agency, the preferred alternative for a project, after being 
     identified, may be developed to a higher level of detail than 
     other alternatives in order to facilitate the development of 
     mitigation measures or concurrent compliance with other 
     applicable laws if the lead agency determines that the 
     development of such higher level of detail will not prevent 
     the lead agency from making an impartial decision as to 
     whether to accept another alternative which is being 
     considered in the environmental review process.
       ``(g) Coordination and Scheduling.--
       ``(1) Coordination plan.--
       ``(A) In general.--The lead agency shall establish a plan 
     for coordinating public and agency participation in and 
     comment on the environmental review process for a project or 
     category of projects. The coordination plan may be 
     incorporated into a memorandum of understanding.

[[Page H7418]]

       ``(B) Schedule.--
       ``(i) In general.--The lead agency may establish as part of 
     the coordination plan, after consultation with each 
     participating agency for the project and with the State in 
     which the project is located (and, if the State is not the 
     project sponsor, with the project sponsor), a schedule for 
     completion of the environmental review process for the 
     project.
       ``(ii) Factors for consideration.--In establishing the 
     schedule, the lead agency shall consider factors such as--

       ``(I) the responsibilities of participating agencies under 
     applicable laws;
       ``(II) resources available to the cooperating agencies;
       ``(III) overall size and complexity of the project;
       ``(IV) the overall schedule for and cost of the project; 
     and
       ``(V) the sensitivity of the natural and historic resources 
     that could be affected by the project.

       ``(C) Consistency with other time periods.--A schedule 
     under subparagraph (B) shall be consistent with any other 
     relevant time periods established under Federal law.
       ``(D) Modification.--The lead agency may--
       ``(i) lengthen a schedule established under subparagraph 
     (B) for good cause; and
       ``(ii) shorten a schedule only with the concurrence of the 
     affected cooperating agencies.
       ``(E) Dissemination.--A copy of a schedule under 
     subparagraph (B), and of any modifications to the schedule, 
     shall be--
       ``(i) provided to all participating agencies and to the 
     State transportation department of the State in which the 
     project is located (and, if the State is not the project 
     sponsor, to the project sponsor); and
       ``(ii) made available to the public.
       ``(2) Comment deadlines.--The lead agency shall establish 
     the following deadlines for comment during the environmental 
     review process for a project:
       ``(A) For comments by agencies and the public on a draft 
     environmental impact statement, a period of not more than 60 
     days after publication in the Federal Register of notice of 
     the date of public availability of such document, unless--
       ``(i) a different deadline is established by agreement of 
     the lead agency, the project sponsor, and all participating 
     agencies; or
       ``(ii) the deadline is extended by the lead agency for good 
     cause.
       ``(B) For all other comment periods established by the lead 
     agency for agency or public comments in the environmental 
     review process, a period of no more than 30 days from 
     availability of the materials on which comment is requested, 
     unless--
       ``(i) a different deadline is established by agreement of 
     the lead agency, the project sponsor, and all participating 
     agencies; or
       ``(ii) the deadline is extended by the lead agency for good 
     cause.
       ``(3) Deadlines for decisions under other laws.--In any 
     case in which a decision under any Federal law relating to a 
     project (including the issuance or denial of a permit or 
     license) is required to be made by the later of the date that 
     is 180 days after the date on which the Secretary made all 
     final decisions of the lead agency with respect to the 
     project, or 180 days after the date on which an application 
     was submitted for the permit or license, the Secretary shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives--
       ``(A) as soon as practicable after the 180-day period, an 
     initial notice of the failure of the Federal agency to make 
     the decision; and
       ``(B) every 60 days thereafter until such date as all 
     decisions of the Federal agency relating to the project have 
     been made by the Federal agency, an additional notice that 
     describes the number of decisions of the Federal agency that 
     remain outstanding as of the date of the additional notice.
       ``(4) Involvement of the public.--Nothing in this 
     subsection shall reduce any time period provided for public 
     comment in the environmental review process under existing 
     Federal law, including a regulation.
       ``(h) Issue Identification and Resolution.--
       ``(1) Cooperation.--The lead agency and the participating 
     agencies shall work cooperatively in accordance with this 
     section to identify and resolve issues that could delay 
     completion of the environmental review process or could 
     result in denial of any approvals required for the project 
     under applicable laws.
       ``(2) Lead agency responsibilities.--The lead agency shall 
     make information available to the participating agencies as 
     early as practicable in the environmental review process 
     regarding the environmental and socioeconomic resources 
     located within the project area and the general locations of 
     the alternatives under consideration. Such information may be 
     based on existing data sources, including geographic 
     information systems mapping.
       ``(3) Participating agency responsibilities.--Based on 
     information received from the lead agency, participating 
     agencies shall identify, as early as practicable, any issues 
     of concern regarding the project's potential environmental or 
     socioeconomic impacts. In this paragraph, issues of concern 
     include any issues that could substantially delay or prevent 
     an agency from granting a permit or other approval that is 
     needed for the project.
       ``(4) Issue resolution.--
       ``(A) Meeting of participating agencies.--At any time upon 
     request of a project sponsor or the Governor of a State in 
     which the project is located, the lead agency shall promptly 
     convene a meeting with the relevant participating agencies, 
     the project sponsor, and the Governor (if the meeting was 
     requested by the Governor) to resolve issues that could delay 
     completion of the environmental review process or could 
     result in denial of any approvals required for the project 
     under applicable laws.
       ``(B) Notice that resolution cannot be achieved.--If a 
     resolution cannot be achieved within 30 days following such a 
     meeting and a determination by the lead agency that all 
     information necessary to resolve the issue has been obtained, 
     the lead agency shall notify the heads of all participating 
     agencies, the project sponsor, the Governor, the Committee on 
     Environment and Public Works of the Senate, the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, and the Council on Environmental Quality, 
     and shall publish such notification in the Federal Register.
       ``(i) Performance Measurement.--The Secretary shall 
     establish a program to measure and report on progress toward 
     improving and expediting the planning and environmental 
     review process.
       ``(j) Assistance to Affected State and Federal Agencies.--
       ``(1) In general.--For a project that is subject to the 
     environmental review process established under this section 
     and for which funds are made available to a State under this 
     title or chapter 53 of title 49, the Secretary may approve a 
     request by the a State to provide funds so made available 
     under this title or such chapter 53 to affected Federal 
     agencies (including the Department of Transportation), State 
     agencies, and Indian tribes participating in the 
     environmental review process for the projects in that State 
     or participating in a State process that has been approved by 
     the Secretary for that State. Such funds may be provided only 
     to support activities that directly and meaningfully 
     contribute to expediting and improving transportation project 
     planning and delivery for projects in that State.
       ``(2) Activities eligible for funding.--Activities for 
     which funds may be provided under paragraph (1) include 
     transportation planning activities that precede the 
     initiation of the environmental review process, dedicated 
     staffing, training of agency personnel, information gathering 
     and mapping, and development of programmatic agreements.
       ``(3) Use of federal lands highway funds.--The Secretary 
     may also use funds made available under section 204 for a 
     project for the purposes specified in this subsection with 
     respect to the environmental review process for the project.
       ``(4) Amounts.--Requests under paragraph (1) may be 
     approved only for the additional amounts that the Secretary 
     determines are necessary for the Federal agencies, State 
     agencies, or Indian tribes participating in the environmental 
     review process to meet the time limits for environmental 
     review.
       ``(5) Condition.--A request under paragraph (1) to expedite 
     time limits for environmental review may be approved only if 
     such time limits are less than the customary time necessary 
     for such review.
       ``(k) Judicial Review and Savings Clause.--
       ``(1) Judicial review.--Except as set forth under 
     subsection (l), nothing in this section shall affect the 
     reviewability of any final Federal agency action in a court 
     of the United States or in the court of any State.
       ``(2) Savings clause.--Nothing in this section shall be 
     construed as superseding, amending, or modifying the National 
     Environmental Policy Act of 1969 or any other Federal 
     environmental statute or affect the responsibility of any 
     Federal officer to comply with or enforce any such statute.
       ``(3) Limitations.--Nothing in this section shall preempt 
     or interfere with--
       ``(A) any practice of seeking, considering, or responding 
     to public comment; or
       ``(B) any power, jurisdiction, responsibility, or authority 
     that a Federal, State, or local government agency, 
     metropolitan planning organization, Indian tribe, or project 
     sponsor has with respect to carrying out a project or any 
     other provisions of law applicable to projects, plans, or 
     programs.
       ``(l) Limitations on Claims.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a claim arising under Federal law seeking judicial 
     review of a permit, license, or approval issued by a Federal 
     agency for a highway or public transportation capital project 
     shall be barred unless it is filed within 180 days after 
     publication of a notice in the Federal Register announcing 
     that the permit, license, or approval is final pursuant to 
     the law under which the agency action is taken, unless a 
     shorter time is specified in the Federal law pursuant to 
     which judicial review is allowed. Nothing in this subsection 
     shall create a right to judicial review or place any limit on 
     filing a claim that a person has violated the terms of a 
     permit, license, or approval.
       ``(2) New information.--The Secretary shall consider new 
     information received after the close of a comment period if 
     the information satisfies the requirements for a supplemental 
     environmental impact statement under section 771.130 of title 
     23, Code of Federal Regulations. The preparation of a 
     supplemental environmental impact statement when required 
     shall be considered a separate final agency action and the 
     deadline for filing a claim for judicial review of such 
     action shall be 180 days after the date of publication of a 
     notice in the Federal Register announcing such action.''.
       (b) Existing Environmental Review Process.--Nothing in this 
     section affects any existing State environmental review 
     process, program, agreement, or funding arrangement approved 
     by the Secretary under section 1309 of the Transportation 
     Equity Act for the 21st Century (112 Stat. 232; 23 U.S.C. 109 
     note) as such section was in effect on the day preceding the 
     date of enactment of the SAFETEA-LU.
       (c) Conforming Amendment.--The analysis for such subchapter 
     is amended by inserting after the item relating to section 
     138 the following:


[[Page H7419]]


``139. Efficient environmental reviews for project decisionmaking.''.

       (d) Repeal.--Section 1309 of the Transportation Equity Act 
     for the 21st Century (112 Stat. 232) is repealed.

     SEC. 6003. STATE ASSUMPTION OF RESPONSIBILITIES FOR CERTAIN 
                   PROGRAMS AND PROJECTS.

       (a) In General.--Chapter 3 of title 23, United States Code, 
     is amended by inserting after section 324 the following:

     ``Sec. 325. State assumption of responsibilities for certain 
       programs and projects

       ``(a) Assumption of Secretary's Responsibilities Under 
     Applicable Federal Laws.--
       ``(1) Pilot program.--
       ``(A) Establishment.--The Secretary may establish a pilot 
     program under which States may assume the responsibilities of 
     the Secretary under any Federal laws subject to the 
     requirements of this section.
       ``(B) First 3 fiscal years.--In the first 3 fiscal years 
     following the date of enactment of the SAFETEA-LU, the 
     Secretary may allow up to 5 States to participate in the 
     pilot program.
       ``(2) Scope of program.--Under the pilot program, the 
     Secretary may assign, and a State may assume, any of the 
     Secretary's responsibilities (other than responsibilities 
     relating to federally recognized Indian tribes) for 
     environmental reviews, consultation, or decisionmaking or 
     other actions required under any Federal law as such 
     requirements apply to the following projects:
       ``(A) Projects funded under section 104(h).
       ``(B) Transportation enhancement activities under section 
     133, as such term is defined in section 101(a)(35).
       ``(b) Agreements.--
       ``(1) In general.--The Secretary shall enter into a 
     memorandum of understanding with a State participating in the 
     pilot program setting forth the responsibilities to be 
     assigned under subsection (a)(2) and the terms and conditions 
     under which the assignment is being made.
       ``(2) Certification.--Before the Secretary enters into a 
     memorandum of understanding with a State under paragraph (1), 
     the State shall certify that the State has in effect laws 
     (including regulations) applicable to projects carried out 
     and funded under this title and chapter 53 of title 49 that 
     authorize the State to carry out the responsibilities being 
     assumed.
       ``(3) Maximum duration.--A memorandum of understanding with 
     a State under this section shall be established for an 
     initial period of no more than 3 years and may be renewed by 
     mutual agreement on a periodic basis for periods of not more 
     than 3 years.
       ``(4) Compliance.--
       ``(A) In general.--After entering into a memorandum of 
     understanding under paragraph (1), the Secretary shall review 
     and determine compliance by the State with the memorandum of 
     understanding.
       ``(B) Renewals.--The Secretary shall take into account the 
     performance of a State under the pilot program when 
     considering renewal of a memorandum of understanding with the 
     State under the program.
       ``(5) Sole responsibility.--A State that assumes 
     responsibility under subsection (a)(2) with respect to a 
     Federal law shall be solely responsible and solely liable for 
     complying with and carrying out that law, and the Secretary 
     shall have no such responsibility or liability.
       ``(6) Acceptance of jurisdiction.--In a memorandum of 
     understanding, the State shall consent to accept the 
     jurisdiction of the Federal courts for the compliance, 
     discharge, and enforcement of any responsibility of the 
     Secretary that the State assumes.
       ``(c) Selection of States for Pilot Program.--
       ``(1) Application.--To be eligible to participate in the 
     pilot program, a State shall submit to the Secretary an 
     application that contains such information as the Secretary 
     may require. At a minimum, an application shall include--
       ``(A) a description of the projects or classes of projects 
     for which the State seeks to assume responsibilities under 
     subsection (a)(2); and
       ``(B) a certification that the State has the capability to 
     assume such responsibilities.
       ``(2) Public notice.--Before entering into a memorandum of 
     understanding allowing a State to participate in the pilot 
     program, the Secretary shall--
       ``(A) publish notice in the Federal Register of the 
     Secretary's intent to allow the State to participate in the 
     program, including a copy of the State's application to the 
     Secretary and the terms of the proposed agreement with the 
     State; and
       ``(B) provide an opportunity for public comment.
       ``(3) Selection criteria.--The Secretary may approve the 
     application of a State to assume responsibilities under the 
     program only if--
       ``(A) the requirements under paragraph (2) have been met; 
     and
       ``(B) the Secretary determines that the State has the 
     capability to assume the responsibilities.
       ``(4) Other federal agency views.--Before assigning to a 
     State a responsibility of the Secretary that requires the 
     Secretary to consult with another Federal agency, the 
     Secretary shall solicit the views of the Federal agency.
       ``(d) State Defined.--With respect to the recreational 
     trails program, the term `State' means the State agency 
     designated by the Governor of the State in accordance with 
     section 206(c)(1).
       ``(e) Preservation of Public Interest Consideration.--
     Nothing in this section shall be construed to limit the 
     requirements under any applicable law providing for the 
     consideration and preservation of the public interest, 
     including public participation and community values in 
     transportation decisionmaking.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by adding after the 
     item relating to section 324 the following:

``325. State assumption of responsibilities for certain programs and 
              projects.''.

     SEC. 6004. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                   EXCLUSIONS.

       (a) In General.--Chapter 3 of title 23, United States Code, 
     is further amended by inserting after section 325 the 
     following:

     ``Sec. 326. State assumption of responsibility for 
       categorical exclusions

       ``(a) Categorical Exclusion Determinations.--
       ``(1) In general.--The Secretary may assign, and a State 
     may assume, responsibility for determining whether certain 
     designated activities are included within classes of action 
     identified in regulation by the Secretary that are 
     categorically excluded from requirements for environmental 
     assessments or environmental impact statements pursuant to 
     regulations promulgated by the Council on Environmental 
     Quality under part 1500 of title 40, Code of Federal 
     Regulations (as in effect on October 1, 2003).
       ``(2) Scope of authority.--A determination described in 
     paragraph (1) shall be made by a State in accordance with 
     criteria established by the Secretary and only for types of 
     activities specifically designated by the Secretary.
       ``(3) Criteria.--The criteria under paragraph (2) shall 
     include provisions for public availability of information 
     consistent with section 552 of title 5 and the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       ``(b) Other Applicable Federal Laws.--
       ``(1) In general.--If a State assumes responsibility under 
     subsection (a), the Secretary may also assign and the State 
     may assume all or part of the responsibilities of the 
     Secretary for environmental review, consultation, or other 
     related actions required under any Federal law applicable to 
     activities that are classified by the Secretary as 
     categorical exclusions, with the exception of government-to-
     government consultation with Indian tribes, subject to the 
     same procedural and substantive requirements as would be 
     required if that responsibility were carried out by the 
     Secretary.
       ``(2) Sole responsibility.--A State that assumes 
     responsibility under paragraph (1) with respect to a Federal 
     law shall be solely responsible and solely liable for 
     complying with and carrying out that law, and the Secretary 
     shall have no such responsibility or liability.
       ``(c) Memoranda of Understanding.--
       ``(1) In general.--The Secretary and the State, after 
     providing public notice and opportunity for comment, shall 
     enter into a memorandum of understanding setting forth the 
     responsibilities to be assigned under this section and the 
     terms and conditions under which the assignments are made, 
     including establishment of the circumstances under which the 
     Secretary would reassume responsibility for categorical 
     exclusion determinations.
       ``(2) Term.--A memorandum of understanding--
       ``(A) shall have a term of not more than 3 years; and
       ``(B) shall be renewable.
       ``(3) Acceptance of jurisdiction.--In a memorandum of 
     understanding, the State shall consent to accept the 
     jurisdiction of the Federal courts for the compliance, 
     discharge, and enforcement of any responsibility of the 
     Secretary that the State assumes.
       ``(4) Monitoring.--The Secretary shall--
       ``(A) monitor compliance by the State with the memorandum 
     of understanding and the provision by the State of financial 
     resources to carry out the memorandum of understanding; and
       ``(B) take into account the performance by the State when 
     considering renewal of the memorandum of understanding.
       ``(d) Termination.--The Secretary may terminate any 
     assumption of responsibility under a memorandum of 
     understanding on a determination that the State is not 
     adequately carrying out the responsibilities assigned to the 
     State.
       ``(e) State Agency Deemed to Be Federal Agency.--A State 
     agency that is assigned a responsibility under a memorandum 
     of understanding shall be deemed to be a Federal agency for 
     the purposes of the Federal law under which the 
     responsibility is exercised.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is further amended by adding 
     after the item relating to section 325 the following:

``326. State assumption of responsibility for categorical 
              exclusions.''.

     SEC. 6005. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT 
                   PROGRAM.

       (a) In General.--Chapter 3 of title 23, United States Code, 
     is further amended by inserting after section 326 the 
     following:

     ``Sec. 327. Surface transportation project delivery pilot 
       program

       ``(a) Establishment.--
       ``(1) In general.--The Secretary shall carry out a surface 
     transportation project delivery pilot program (referred to in 
     this section as the `program').
       ``(2) Assumption of responsibility.--
       ``(A) In general.--Subject to the other provisions of this 
     section, with the written agreement of the Secretary and a 
     State, which may be in the form of a memorandum of 
     understanding, the Secretary may assign, and the State may 
     assume, the responsibilities of the Secretary with respect to 
     1 or more highway projects within the State under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       ``(B) Additional responsibility.--If a State assumes 
     responsibility under subparagraph (A)--
       ``(i) the Secretary may assign to the State, and the State 
     may assume, all or part of the responsibilities of the 
     Secretary for environmental

[[Page H7420]]

     review, consultation, or other action required under any 
     Federal environmental law pertaining to the review or 
     approval of a specific project; but
       ``(ii) the Secretary may not assign--

       ``(I) responsibility for any conformity determination 
     required under section 176 of the Clean Air Act (42 U.S.C. 
     7506); or
       ``(II) any responsibility imposed on the Secretary by 
     section 134 or 135.

       ``(C) Procedural and substantive requirements.--A State 
     shall assume responsibility under this section subject to the 
     same procedural and substantive requirements as would apply 
     if that responsibility were carried out by the Secretary.
       ``(D) Federal responsibility.--Any responsibility of the 
     Secretary not explicitly assumed by the State by written 
     agreement under this section shall remain the responsibility 
     of the Secretary.
       ``(E) No effect on authority.--Nothing in this section 
     preempts or interferes with any power, jurisdiction, 
     responsibility, or authority of an agency, other than the 
     Department of Transportation, under applicable law (including 
     regulations) with respect to a project.
       ``(b) State Participation.--
       ``(1) Number of participating states.--The Secretary may 
     permit not more than 5 States (including the States of 
     Alaska, California, Ohio, Oklahoma, and Texas) to participate 
     in the program.
       ``(2) Application.--Not later than 270 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations that establish requirements relating to 
     information required to be contained in any application of a 
     State to participate in the program, including, at a 
     minimum--
       ``(A) the projects or classes of projects for which the 
     State anticipates exercising the authority that may be 
     granted under the program;
       ``(B) verification of the financial resources necessary to 
     carry out the authority that may be granted under the 
     program; and
       ``(C) evidence of the notice and solicitation of public 
     comment by the State relating to participation of the State 
     in the program, including copies of comments received from 
     that solicitation.
       ``(3) Public notice.--
       ``(A) In general.--Each State that submits an application 
     under this subsection shall give notice of the intent of the 
     State to participate in the program not later than 30 days 
     before the date of submission of the application.
       ``(B) Method of notice and solicitation.--The State shall 
     provide notice and solicit public comment under this 
     paragraph by publishing the complete application of the State 
     in accordance with the appropriate public notice law of the 
     State.
       ``(4) Selection criteria.--The Secretary may approve the 
     application of a State under this section only if--
       ``(A) the regulatory requirements under paragraph (2) have 
     been met;
       ``(B) the Secretary determines that the State has the 
     capability, including financial and personnel, to assume the 
     responsibility; and
       ``(C) the head of the State agency having primary 
     jurisdiction over highway matters enters into a written 
     agreement with the Secretary described in subsection (c).
       ``(5) Other federal agency views.--If a State applies to 
     assume a responsibility of the Secretary that would have 
     required the Secretary to consult with another Federal 
     agency, the Secretary shall solicit the views of the Federal 
     agency before approving the application.
       ``(c) Written Agreement.--A written agreement under this 
     section shall--
       ``(1) be executed by the Governor or the top-ranking 
     transportation official in the State who is charged with 
     responsibility for highway construction;
       ``(2) be in such form as the Secretary may prescribe;
       ``(3) provide that the State--
       ``(A) agrees to assume all or part of the responsibilities 
     of the Secretary described in subsection (a);
       ``(B) expressly consents, on behalf of the State, to accept 
     the jurisdiction of the Federal courts for the compliance, 
     discharge, and enforcement of any responsibility of the 
     Secretary assumed by the State;
       ``(C) certifies that State laws (including regulations) are 
     in effect that--
       ``(i) authorize the State to take the actions necessary to 
     carry out the responsibilities being assumed; and
       ``(ii) are comparable to section 552 of title 5, including 
     providing that any decision regarding the public availability 
     of a document under those State laws is reviewable by a court 
     of competent jurisdiction; and
       ``(D) agrees to maintain the financial resources necessary 
     to carry out the responsibilities being assumed.
       ``(d) Jurisdiction.--
       ``(1) In general.--The United States district courts shall 
     have exclusive jurisdiction over any civil action against a 
     State for failure to carry out any responsibility of the 
     State under this section.
       ``(2) Legal standards and requirements.--A civil action 
     under paragraph (1) shall be governed by the legal standards 
     and requirements that would apply in such a civil action 
     against the Secretary had the Secretary taken the actions in 
     question.
       ``(3) Intervention.--The Secretary shall have the right to 
     intervene in any action described in paragraph (1).
       ``(e) Effect of Assumption of Responsibility.--A State that 
     assumes responsibility under subsection (a)(2) shall be 
     solely responsible and solely liable for carrying out, in 
     lieu of the Secretary, the responsibilities assumed under 
     subsection (a)(2), until the program is terminated as 
     provided in subsection (i).
       ``(f) Limitations on Agreements.--Nothing in this section 
     permits a State to assume any rulemaking authority of the 
     Secretary under any Federal law.
       ``(g) Audits.--
       ``(1) In general.--To ensure compliance by a State with any 
     agreement of the State under subsection (c) (including 
     compliance by the State with all Federal laws for which 
     responsibility is assumed under subsection (a)(2)), for each 
     State participating in the program under this section, the 
     Secretary shall conduct--
       ``(A) semiannual audits during each of the first 2 years of 
     State participation; and
       ``(B) annual audits during each subsequent year of State 
     participation.
       ``(2) Public availability and comment.--
       ``(A) In general.--An audit conducted under paragraph (1) 
     shall be provided to the public for comment.
       ``(B) Response.--Not later than 60 days after the date on 
     which the period for public comment ends, the Secretary shall 
     respond to public comments received under subparagraph (A).
       ``(h) Report to Congress.--The Secretary shall submit to 
     Congress an annual report that describes the administration 
     of the program.
       ``(i) Termination.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     program shall terminate on the date that is 6 years after the 
     date of enactment of this section.
       ``(2) Termination by secretary.--The Secretary may 
     terminate the participation of any State in the program if--
       ``(A) the Secretary determines that the State is not 
     adequately carrying out the responsibilities assigned to the 
     State;
       ``(B) the Secretary provides to the State--
       ``(i) notification of the determination of noncompliance; 
     and
       ``(ii) a period of at least 30 days during which to take 
     such corrective action as the Secretary determines is 
     necessary to comply with the applicable agreement; and
       ``(C) the State, after the notification and period provided 
     under subparagraph (B), fails to take satisfactory corrective 
     action, as determined by Secretary.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is further amended by adding 
     after the item relating to section 326 the following:

``327. Surface transportation project delivery pilot program.''.

     SEC. 6006. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT; 
                   CONTROL OF NOXIOUS WEEDS AND AQUATIC NOXIOUS 
                   WEEDS AND ESTABLISHMENT OF NATIVE SPECIES.

       (a) Modification to NHS/STP for Environmental Restoration, 
     Pollution Abatement, Control of Noxious Weeds and Aquatic 
     Noxious Weeds.--
       (1) Modifications to national highway system.--Section 
     103(b)(6) of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(Q) Environmental restoration and pollution abatement in 
     accordance with section 328.
       ``(R) Control of noxious weeds and aquatic noxious weeds 
     and establishment of native species in accordance with 
     section 329.''.
       (2) Modifications to surface transportation program.--
     Section 133(b) of title 23, is amended by striking paragraph 
     (14) and inserting the following:
       ``(14) Environmental restoration and pollution abatement in 
     accordance with section 328.
       ``(15) Control of noxious weeds and aquatic noxious weeds 
     and establishment of native species in accordance with 
     section 329.''.
       (b) Eligible Activities.--Chapter 3 of title 23, United 
     States Code, is further amended by adding after section 327 
     the following:

     ``Sec. 328. Eligibility for environmental restoration and 
       pollution abatement

       ``(a) In General.--Subject to subsection (b), environmental 
     restoration and pollution abatement to minimize or mitigate 
     the impacts of any transportation project funded under this 
     title (including retrofitting and construction of stormwater 
     treatment systems to meet Federal and State requirements 
     under sections 401 and 402 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1341; 1342)) may be carried out to 
     address water pollution or environmental degradation caused 
     wholly or partially by a transportation facility.
       ``(b) Maximum Expenditure.--In a case in which a 
     transportation facility is undergoing reconstruction, 
     rehabilitation, resurfacing, or restoration, the expenditure 
     of funds under this section for environmental restoration or 
     pollution abatement described in subsection (a) shall not 
     exceed 20 percent of the total cost of the reconstruction, 
     rehabilitation, resurfacing, or restoration of the facility.

     ``Sec. 329. Eligibility for control of noxious weeds and 
       aquatic noxious weeds and establishment of native species

       ``(a) In General.--In accordance with all applicable 
     Federal law (including regulations), funds made available to 
     carry out this section may be used for the following 
     activities if such activities are related to transportation 
     projects funded under this title:
       ``(1) Establishment of plants selected by State and local 
     transportation authorities to perform one or more of the 
     following functions: abatement of stormwater runoff, 
     stabilization of soil, and aesthetic enhancement.
       ``(2) Management of plants which impair or impede the 
     establishment, maintenance, or safe use of a transportation 
     system.
       ``(b) Included Activities.--The establishment and 
     management under subsection (a)(1) and (a)(2) may include--
       ``(1) right-of-way surveys to determine management 
     requirements to control Federal or State noxious weeds as 
     defined in the Plant Protection Act (7 U.S.C. 7701 et seq.) 
     or State law,

[[Page H7421]]

     and brush or tree species, whether native or nonnative, that 
     may be considered by State or local transportation 
     authorities to be a threat with respect to the safety or 
     maintenance of transportation systems;
       ``(2) establishment of plants, whether native or nonnative 
     with a preference for native to the maximum extent possible, 
     for the purposes defined in subsection (a)(1);
       ``(3) control or elimination of plants as defined in 
     subsection (a)(2);
       ``(4) elimination of plants to create fuel breaks for the 
     prevention and control of wildfires; and
       ``(5) training.
       ``(c) Contributions.--
       ``(1) In general.--Subject to paragraph (2), an activity 
     described in subsection (a) may be carried out concurrently 
     with, in advance of, or following the construction of a 
     project funded under this title.
       ``(2) Condition for activities conducted in advance of 
     project construction.--An activity described in subsection 
     (a) may be carried out in advance of construction of a 
     project only if the activity is carried out in accordance 
     with all applicable requirements of Federal law (including 
     regulations) and State transportation planning processes.''.
       (c) Conforming Amendment.--The analysis for chapter 3 of 
     title 23 is further amended by adding after the item relating 
     to section 327 the following:

``328. Eligibility for environmental restoration and pollution 
              abatement.
``329. Eligibility for control of noxious weeds and aquatic noxious 
              weeds and establishment of native species.''.

     SEC. 6007. EXEMPTION OF INTERSTATE SYSTEM.

       Section 103(c) of title 23, United States Code, is amended 
     by adding at the end the following:
       ``(5) Exemption of interstate system.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Interstate System shall not be considered to be a 
     historic site under section 303 of title 49 or section 138 of 
     this title, regardless of whether the Interstate System or 
     portions or elements of the Interstate System are listed on, 
     or eligible for listing on, the National Register of Historic 
     Places.
       ``(B) Individual elements.--Subject to subparagraph (C), 
     the Secretary shall determine, through the administrative 
     process established for exempting the Interstate System from 
     section 106 of the National Historic Preservation Act (16 
     U.S.C. 470f), those individual elements of the Interstate 
     System that possess national or exceptional historic 
     significance (such as a historic bridge or a highly 
     significant engineering feature). Such elements shall be 
     considered to be a historic site under section 303 of title 
     49 or section 138 of this title, as applicable.
       ``(C) Construction, maintenance, restoration, and 
     rehabilitation activities.--Subparagraph (B) does not 
     prohibit a State from carrying out construction, maintenance, 
     restoration, or rehabilitation activities for a portion of 
     the Interstate System referred to in subparagraph (B) upon 
     compliance with section 303 of title 49 or section 138 of 
     this title, as applicable, and section 106 of the National 
     Historic Preservation Act (16 U.S.C. 470f).''.

     SEC. 6008. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO 
                   TRANSPORTATION PROJECT PLANNING.

       Section 109(c)(2) of title 23, United States Code, is 
     amended--
       (1) by striking ``consider the results'' and inserting 
     ``consider--
       ``(A) the results'';
       (2) by striking the period at the end and inserting a 
     semicolon; and
       (3) by adding at the end the following:
       ``(B) the publication entitled `Flexibility in Highway 
     Design' of the Federal Highway Administration;
       ``(C) `Eight Characteristics of Process to Yield Excellence 
     and the Seven Qualities of Excellence in Transportation 
     Design' developed by the conference held during 1998 entitled 
     `Thinking Beyond the Pavement National Workshop on 
     Integrating Highway Development with Communities and the 
     Environment while Maintaining Safety and Performance'; and
       ``(D) any other material that the Secretary determines to 
     be appropriate.''.

     SEC. 6009. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL 
                   REFUGES, AND HISTORIC SITES.

       (a) Programs and Projects With De Minimis Impacts.--
       (1) Title 23.--Section 138 of title 23, United States Code, 
     is amended--
       (A) in the first sentence, by striking ``it is hereby'' and 
     inserting the following: ``(a) Declaration of Policy.--It 
     is''; and
       (B) by adding at the end the following:
       ``(b) De Minimis Impacts.--
       ``(1) Requirements.--
       ``(A) Requirements for historic sites.--The requirements of 
     this section shall be considered to be satisfied with respect 
     to an area described in paragraph (2) if the Secretary 
     determines, in accordance with this subsection, that a 
     transportation program or project will have a de minimis 
     impact on the area.
       ``(B) Requirements for parks, recreation areas, and 
     wildlife or waterfowl refuges.--The requirements of 
     subsection (a)(1) shall be considered to be satisfied with 
     respect to an area described in paragraph (3) if the 
     Secretary determines, in accordance with this subsection, 
     that a transportation program or project will have a de 
     minimis impact on the area. The requirements of subsection 
     (a)(2) with respect to an area described in paragraph (3) 
     shall not include an alternatives analysis.
       ``(C) Criteria.--In making any determination under this 
     subsection, the Secretary shall consider to be part of a 
     transportation program or project any avoidance, 
     minimization, mitigation, or enhancement measures that are 
     required to be implemented as a condition of approval of the 
     transportation program or project.
       ``(2) Historic sites.--With respect to historic sites, the 
     Secretary may make a finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     consultation process required under section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f), that--
       ``(i) the transportation program or project will have no 
     adverse effect on the historic site; or
       ``(ii) there will be no historic properties affected by the 
     transportation program or project;
       ``(B) the finding of the Secretary has received written 
     concurrence from the applicable State historic preservation 
     officer or tribal historic preservation officer (and from the 
     Advisory Council on Historic Preservation if the Council is 
     participating in the consultation process); and
       ``(C) the finding of the Secretary has been developed in 
     consultation with parties consulting as part of the process 
     referred to in subparagraph (A).
       ``(3) Parks, recreation areas, and wildlife or waterfowl 
     refuges.--With respect to parks, recreation areas, or 
     wildlife or waterfowl refuges, the Secretary may make a 
     finding of de minimis impact only if--
       ``(A) the Secretary has determined, after public notice and 
     opportunity for public review and comment, that the 
     transportation program or project will not adversely affect 
     the activities, features, and attributes of the park, 
     recreation area, or wildlife or waterfowl refuge eligible for 
     protection under this section; and
       ``(B) the finding of the Secretary has received concurrence 
     from the officials with jurisdiction over the park, 
     recreation area, or wildlife or waterfowl refuge.''.
       (2) Title 49.--Section 303 of title 49, United States Code, 
     is amended--
       (A) by striking ``(c) The Secretary'' and inserting the 
     following:
       ``(c) Approval of Programs and Projects.--Subject to 
     subsection (d), the Secretary''; and
       (B) by adding at the end the following:
       ``(d) De Minimis Impacts.--
       ``(1) Requirements.--
       ``(A) Requirements for historic sites.--The requirements of 
     this section shall be considered to be satisfied with respect 
     to an area described in paragraph (2) if the Secretary 
     determines, in accordance with this subsection, that a 
     transportation program or project will have a de minimis 
     impact on the area.
       ``(B) Requirements for parks, recreation areas, and 
     wildlife or waterfowl refuges.--The requirements of 
     subsection (c)(1) shall be considered to be satisfied with 
     respect to an area described in paragraph (3) if the 
     Secretary determines, in accordance with this subsection, 
     that a transportation program or project will have a de 
     minimis impact on the area. The requirements of subsection 
     (c)(2) with respect to an area described in paragraph (3) 
     shall not include an alternatives analysis.
       ``(C) Criteria.--In making any determination under this 
     subsection, the Secretary shall consider to be part of a 
     transportation program or project any avoidance, 
     minimization, mitigation, or enhancement measures that are 
     required to be implemented as a condition of approval of the 
     transportation program or project.
       ``(2) Historic sites.--With respect to historic sites, the 
     Secretary may make a finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     consultation process required under section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f), that--
       ``(i) the transportation program or project will have no 
     adverse effect on the historic site; or
       ``(ii) there will be no historic properties affected by the 
     transportation program or project;
       ``(B) the finding of the Secretary has received written 
     concurrence from the applicable State historic preservation 
     officer or tribal historic preservation officer (and from the 
     Advisory Council on Historic Preservation if the Council is 
     participating in the consultation process); and
       ``(C) the finding of the Secretary has been developed in 
     consultation with parties consulting as part of the process 
     referred to in subparagraph (A).
       ``(3) Parks, recreation areas, and wildlife or waterfowl 
     refuges.--With respect to parks, recreation areas, or 
     wildlife or waterfowl refuges, the Secretary may make a 
     finding of de minimis impact only if--
       ``(A) the Secretary has determined, after public notice and 
     opportunity for public review and comment, that the 
     transportation program or project will not adversely affect 
     the activities, features, and attributes of the park, 
     recreation area, or wildlife or waterfowl refuge eligible for 
     protection under this section; and
       ``(B) the finding of the Secretary has received concurrence 
     from the officials with jurisdiction over the park, 
     recreation area, or wildlife or waterfowl refuge.''.
       (b) Clarification of Existing Standards.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall (in consultation 
     with affected agencies and interested parties) promulgate 
     regulations that clarify the factors to be considered and the 
     standards to be applied in determining the prudence and 
     feasibility of alternatives under section 138 of title 23 and 
     section 303 of title 49, United States Code.
       (2) Requirements.--The regulations--
       (A) shall clarify the application of the legal standards to 
     a variety of different types of transportation programs and 
     projects depending on the circumstances of each case; and
       (B) may include, as appropriate, examples to facilitate 
     clear and consistent interpretation by agency decisionmakers.
       (c) Implementation Study.--

[[Page H7422]]

       (1) In general.--The Secretary shall--
       (A) conduct a study on the implementation of this section 
     and the amendments made by this section; and
       (B) commission an independent review of the study plan and 
     methodology, and any associated conclusions, by the 
     Transportation Research Board of the National Academy of 
     Sciences.
       (2) Components.--In conducting the study, the Secretary 
     shall evaluate--
       (A) the processes developed under this section and the 
     amendments made by this section and the efficiencies that may 
     result;
       (B) the post-construction effectiveness of impact 
     mitigation and avoidance commitments adopted as part of 
     projects conducted under this section and the amendments made 
     by this section; and
       (C) the quantity of projects with impacts that are 
     considered de minimis under this section and the amendments 
     made by this section, including information on the location, 
     size, and cost of the projects.
       (3) Report requirement.--The Secretary shall prepare--
       (A) not earlier than the date that is 3 years after the 
     date of enactment of this Act, a report on the results of the 
     study conducted under this subsection; and
       (B) not later than March 1, 2010, an update on the report 
     required under subparagraph (A).
       (4) Report recipients.--The Secretary shall--
       (A) submit the report, review of the report, and update 
     required under paragraph (3) to--
       (i) the appropriate committees of Congress;
       (ii) the Secretary of the Interior; and
       (iii) the Advisory Council on Historic Preservation; and
       (B) make the report and update available to the public.

     SEC. 6010. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT SUPPORT 
                   DEPLOYMENT OF INTELLIGENT TRANSPORTATION 
                   SYSTEMS.

       (a) Categorical Exclusions.--Not later than one year after 
     the date of enactment of this Act, the Secretary shall 
     initiate a rulemaking process to establish, to the extent 
     appropriate, categorical exclusions for activities that 
     support the deployment of intelligent transportation 
     infrastructure and systems from the requirement that an 
     environmental assessment or an environmental impact statement 
     be prepared under section 102 of the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4332) in compliance with the 
     standards for categorical exclusions established by that Act.
       (b) Nationwide Programmatic Agreement.--
       (1) Development.--The Secretary shall develop a nationwide 
     programmatic agreement governing the review of activities 
     that support the deployment of intelligent transportation 
     infrastructure and systems in accordance with section 106 of 
     the National Historic Preservation Act (16 U.S.C. 470f) and 
     the regulations of the Advisory Council on Historic 
     Preservation.
       (2) Consultation.--The Secretary shall develop the 
     agreement under paragraph (1) in consultation with the 
     National Conference of State Historic Preservation Officers 
     and the Advisory Council on Historic Preservation established 
     under title II of the National Historic Preservation Act (26 
     U.S.C. 470i et seq.) and after soliciting the views of other 
     interested parties.
       (c) Intelligent Transportation Infrastructure and Systems 
     Defined.--In this section, the term ``intelligent 
     transportation infrastructure and systems'' means intelligent 
     transportation infrastructure and intelligent transportation 
     systems, as such terms are defined in subtitle C of title V 
     of this Act.

     SEC. 6011. TRANSPORTATION CONFORMITY.

       (a) Conformity Redeterminations.--Section 176(c)(2) of the 
     Clean Air Act (42 U.S.C. 7506(c)) is amended by adding at the 
     end the following:
       ``(E) The appropriate metropolitan planning organization 
     shall redetermine conformity of existing transportation plans 
     and programs not later than 2 years after the date on which 
     the Administrator--
       ``(i) finds a motor vehicle emissions budget to be adequate 
     in accordance with section 93.118(e)(4) of title 40, Code of 
     Federal Regulations (as in effect on October 1, 2004);
       ``(ii) approves an implementation plan that establishes a 
     motor vehicle emissions budget if that budget has not yet 
     been determined to be adequate in accordance with clause (i); 
     or
       ``(iii) promulgates an implementation plan that establishes 
     or revises a motor vehicle emissions budget.''.
       (b) Frequency of Conformity Determination Updates.--Section 
     176(c)(4)(B)(ii) of the Clean Air Act (42 U.S.C. 
     7506(c)(4)(B)(ii)) is amended to read as follows:
       ``(ii) address the appropriate frequency for making 
     conformity determinations, but the frequency for making 
     conformity determinations on updated transportation plans and 
     programs shall be every 4 years, except in a case in which--
       ``(I) the metropolitan planning organization elects to 
     update a transportation plan or program more frequently; or
       ``(II) the metropolitan planning organization is required 
     to determine conformity in accordance with paragraph (2)(E); 
     and''.
       (c) Time Horizon for Conformity Determinations in 
     Nonattainment Areas.--Section 176(c) of the Clean Air Act (42 
     U.S.C. 7506(c)) is amended by adding at the end the 
     following:
       ``(7) Conformity horizon for transportation plans.--
       ``(A) In general.--Each conformity determination required 
     under this section for a transportation plan under section 
     134(i) of title 23, United States Code, or section 5303(i) of 
     title 49, United States Code, shall require a demonstration 
     of conformity for the period ending on either the final year 
     of the transportation plan, or at the election of the 
     metropolitan planning organization, after consultation with 
     the air pollution control agency and solicitation of public 
     comments and consideration of such comments, the longest of 
     the following periods:
       ``(i) The first 10-year period of any such transportation 
     plan.
       ``(ii) The latest year in the implementation plan 
     applicable to the area that contains a motor vehicle emission 
     budget.
       ``(iii) The year after the completion date of a regionally 
     significant project if the project is included in the 
     transportation improvement program or the project requires 
     approval before the subsequent conformity determination.
       ``(B) Regional emissions analysis.--The conformity 
     determination shall be accompanied by a regional emissions 
     analysis for the last year of the transportation plan and for 
     any year shown to exceed emission budgets by a prior 
     analysis, if such year extends beyond the applicable period 
     as determined under subparagraph (A).
       ``(C) Exception.--In any case in which an area has a 
     revision to an implementation plan under section 175A(b) and 
     the Administrator has found the motor vehicles emissions 
     budgets from that revision to be adequate in accordance with 
     section 93.118(e)(4) of title 40, Code of Federal Regulations 
     (as in effect on October 1, 2004), or has approved the 
     revision, the demonstration of conformity at the election of 
     the metropolitan planning organization, after consultation 
     with the air pollution control agency and solicitation of 
     public comments and consideration of such comments, shall be 
     required to extend only through the last year of the 
     implementation plan required under section 175A(b).
       ``(D) Effect of election.--Any election by a metropolitan 
     planning organization under this paragraph shall continue in 
     effect until the metropolitan planning organization elects 
     otherwise.
       ``(E) Air pollution control agency defined.--In this 
     paragraph, the term `air pollution control agency' means an 
     air pollution control agency (as defined in section 302(b)) 
     that is responsible for developing plans or controlling air 
     pollution within the area covered by a transportation 
     plan.''.
       (d) Substitution of Transportation Control Measures.--
     Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (as 
     amended by subsection (c)) is amended by inserting after 
     paragraph (7) the following:
       ``(8) Substitution of transportation control measures.--
       ``(A) In general.--Transportation control measures that are 
     specified in an implementation plan may be replaced or added 
     to the implementation plan with alternate or additional 
     transportation control measures--
       ``(i) if the substitute measures achieve equivalent or 
     greater emissions reductions than the control measure to be 
     replaced, as demonstrated with an emissions impact analysis 
     that is consistent with the current methodology used for 
     evaluating the replaced control measure in the implementation 
     plan;
       ``(ii) if the substitute control measures are implemented--

       ``(I) in accordance with a schedule that is consistent with 
     the schedule provided for control measures in the 
     implementation plan; or
       ``(II) if the implementation plan date for implementation 
     of the control measure to be replaced has passed, as soon as 
     practicable after the implementation plan date but not later 
     than the date on which emission reductions are necessary to 
     achieve the purpose of the implementation plan;

       ``(iii) if the substitute and additional control measures 
     are accompanied with evidence of adequate personnel and 
     funding and authority under State or local law to implement, 
     monitor, and enforce the control measures;
       ``(iv) if the substitute and additional control measures 
     were developed through a collaborative process that 
     included--

       ``(I) participation by representatives of all affected 
     jurisdictions (including local air pollution control 
     agencies, the State air pollution control agency, and State 
     and local transportation agencies);
       ``(II) consultation with the Administrator; and
       ``(III) reasonable public notice and opportunity for 
     comment; and

       ``(v) if the metropolitan planning organization, State air 
     pollution control agency, and the Administrator concur with 
     the equivalency of the substitute or additional control 
     measures.
       ``(B) Adoption.--(i) Concurrence by the metropolitan 
     planning organization, State air pollution control agency and 
     the Administrator as required by subparagraph (A)(v) shall 
     constitute adoption of the substitute or additional control 
     measures so long as the requirements of subparagraphs (A)(i), 
     (A)(ii), (A)(iii) and (A)(iv) are met.
       ``(ii) Once adopted, the substitute or additional control 
     measures become, by operation of law, part of the state 
     implementation plan and become federally enforceable.
       ``(iii) Within 90 days of its concurrence under 
     subparagraph (A)(v), the State air pollution control agency 
     shall submit the substitute or additional control measure to 
     the Administrator for incorporation in the codification of 
     the applicable implementation plan. Nothwithstanding any 
     other provision of this Act, no additional State process 
     shall be necessary to support such revision to the applicable 
     plan.
       ``(C) No requirement for express permission.--The 
     substitution or addition of a transportation control measure 
     in accordance with this paragraph and the funding or approval 
     of such a control measure shall not be contingent on the 
     existence of any provision in the applicable implementation 
     plan that expressly permits such a substitution or addition.

[[Page H7423]]

       ``(D) No requirement for new conformity determination.--The 
     substitution or addition of a transportation control measure 
     in accordance with this paragraph shall not require--
       ``(i) a new conformity determination for the transportation 
     plan; or
       ``(ii) a revision of the implementation plan.
       ``(E) Continuation of control measure being replaced.--A 
     control measure that is being replaced by a substitute 
     control measure under this paragraph shall remain in effect 
     until the substitute control measure is adopted by the State 
     pursuant to subparagraph (B).
       ``(F) Effect of adoption.--Adoption of a substitute control 
     measure shall constitute rescission of the previously 
     applicable control measure.''.
       (e) Lapse of Conformity.--Section 176(c) of the Clean Air 
     Act (42 U.S.C. 7506(c)) (as amended by subsections (c) and 
     (d)) is amended by inserting after paragraph (8) the 
     following:
       ``(9) Lapse of conformity.--If a conformity determination 
     required under this subsection for a transportation plan 
     under section 134(i) of title 23, United States Code, or 
     section 5303(i) of title 49, United States Code, or a 
     transportation improvement program under section 134(j) of 
     such title 23 or under section 5303(j) of such title 49 is 
     not made by the applicable deadline and such failure is not 
     corrected by additional measures to either reduce motor 
     vehicle emissions sufficient to demonstrate compliance with 
     the requirements of this subsection within 12 months after 
     such deadline or other measures sufficient to correct such 
     failures, the transportation plan shall lapse.
       ``(10) Lapse.--In this subsection, the term `lapse' means 
     that the conformity determination for a transportation plan 
     or transportation improvement program has expired, and thus 
     there is no currently conforming transportation plan or 
     transportation improvement program.''.
       (f) Conforming Amendments.--Section 176(c)(4) of the Clean 
     Air Act (42 U.S.C. 7506(c)(4) (as amended by subsection (b)) 
     is amended--
       (1) by redesignating subparagraphs (B), (C), and (D) as 
     subparagraphs (D), (E), and (F), respectively;
       (2) by striking ``(4)(A) No later than one year after the 
     date of enactment of the Clean Air Act Amendments of 1990, 
     the Administrator shall promulgate'' and inserting the 
     following:
       ``(4) Criteria and procedures for determining conformity.--
       ``(A) In general.--The Administrator shall promulgate, and 
     periodically update,'';
       (3) in the second sentence of subparagraph (A)--
       (A) by striking ``No later than one year after such date of 
     enactment, the Administrator, with the concurrence of the 
     Secretary of Transportation, shall promulgate'' and inserting 
     the following:
       ``(B) Transportation plans, programs, and projects.--The 
     Administrator, with the concurrence of the Secretary of 
     Transportation, shall promulgate, and periodically update,''; 
     and
       (B) in the third sentence, by striking ``A suit'' and 
     inserting the following:
       ``(C) Civil action to compel promulgation.--A civil 
     action''; and
       (4) by striking subparagraph (E) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(E) Inclusion of criteria and procedures in sip.--Not 
     later than 2 years after the date of enactment of the 
     SAFETEA-LU the procedures under subparagraph (A) shall 
     include a requirement that each State include in the State 
     implementation plan criteria and procedures for consultation 
     required by subparagraph (D)(i), and enforcement and 
     enforceability (pursuant to sections 93.125(c) and 
     93.122(a)(4)(ii) of title 40, Code of Federal Regulations) in 
     accordance with the Administrator's criteria and procedures 
     for consultation, enforcement and enforceability.''.
       (g) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency shall promulgate revised regulations to 
     implement the changes made by this section.

     SEC. 6012. FEDERAL REFERENCE METHOD.

       (a) In General.--Section 6102(e) of the Transportation 
     Equity Act for the 21st Century (42 U.S.C. 7407 note; 112 
     Stat. 464-465) is amended to read as follows:
       ``(e) Field Study.--Not later than 2 years after the date 
     of enactment of the SAFETEA-LU, the Administrator shall--
       ``(1) conduct a field study of the ability of the 
     PM2.5 Federal Reference Method to differentiate 
     those particles that are larger than 2.5 micrometers in 
     diameter;
       ``(2) develop a Federal reference method to measure 
     directly particles that are larger than 2.5 micrometers in 
     diameter without reliance on subtracting from coarse particle 
     measurements those particles that are equal to or smaller 
     than 2.5 micrometers in diameter;
       ``(3) develop a method of measuring the composition of 
     coarse particles; and
       ``(4) submit a report on the study and responsibilities of 
     the Administrator under paragraphs (1) through (3) to--
       ``(A) the Committee on Energy and Commerce of the House of 
     Representatives; and
       ``(B) the Committee on Environment and Public Works of the 
     Senate.''.

     SEC. 6013. AIR QUALITY MONITORING DATA INFLUENCED BY 
                   EXCEPTIONAL EVENTS.

       (a) In General.--Section 319 of the Clean Air Act (42 
     U.S.C. 7619) is amended--
       (1) by striking the section heading and all that follows 
     through ``after notice and opportunity for public hearing'' 
     and inserting the following:

     ``SEC. 319. AIR QUALITY MONITORING.

       ``(a) In General.--After notice and opportunity for public 
     hearing''; and
       (2) by adding at the end the following:
       ``(b) Air Quality Monitoring Data Influenced by Exceptional 
     Events.--
       ``(1) Definition of exceptional event.--In this section:
       ``(A) In general.--The term `exceptional event' means an 
     event that--
       ``(i) affects air quality;
       ``(ii) is not reasonably controllable or preventable;
       ``(iii) is an event caused by human activity that is 
     unlikely to recur at a particular location or a natural 
     event; and
       ``(iv) is determined by the Administrator through the 
     process established in the regulations promulgated under 
     paragraph (2) to be an exceptional event.
       ``(B) Exclusions.--In this subsection, the term 
     `exceptional event' does not include--
       ``(i) stagnation of air masses or meteorological 
     inversions;
       ``(ii) a meteorological event involving high temperatures 
     or lack of precipitation; or
       ``(iii) air pollution relating to source noncompliance.
       ``(2) Regulations.--
       ``(A) Proposed regulations.--Not later than March 1, 2006, 
     after consultation with Federal land managers and State air 
     pollution control agencies, the Administrator shall publish 
     in the Federal Register proposed regulations governing the 
     review and handling of air quality monitoring data influenced 
     by exceptional events.
       ``(B) Final regulations.--Not later than 1 year after the 
     date on which the Administrator publishes proposed 
     regulations under subparagraph (A), and after providing an 
     opportunity for interested persons to make oral presentations 
     of views, data, and arguments regarding the proposed 
     regulations, the Administrator shall promulgate final 
     regulations governing the review and handling or air quality 
     monitoring data influenced by an exceptional event that are 
     consistent with paragraph (3).
       ``(3) Principles and requirements.--
       ``(A) Principles.--In promulgating regulations under this 
     section, the Administrator shall follow--
       ``(i) the principle that protection of public health is the 
     highest priority;
       ``(ii) the principle that timely information should be 
     provided to the public in any case in which the air quality 
     is unhealthy;
       ``(iii) the principle that all ambient air quality data 
     should be included in a timely manner, an appropriate Federal 
     air quality database that is accessible to the public;
       ``(iv) the principle that each State must take necessary 
     measures to safeguard public health regardless of the source 
     of the air pollution; and
       ``(v) the principle that air quality data should be 
     carefully screened to ensure that events not likely to recur 
     are represented accurately in all monitoring data and 
     analyses.
       ``(B) Requirements.--Regulations promulgated under this 
     section shall, at a minimum, provide that--
       ``(i) the occurrence of an exceptional event must be 
     demonstrated by reliable, accurate data that is promptly 
     produced and provided by Federal, State, or local government 
     agencies;
       ``(ii) a clear causal relationship must exist between the 
     measured exceedances of a national ambient air quality 
     standard and the exceptional event to demonstrate that the 
     exceptional event caused a specific air pollution 
     concentration at a particular air quality monitoring 
     location;
       ``(iii) there is a public process for determining whether 
     an event is exceptional; and
       ``(iv) there are criteria and procedures for the Governor 
     of a State to petition the Administrator to exclude air 
     quality monitoring data that is directly due to exceptional 
     events from use in determinations by the Administrator with 
     respect to exceedances or violations of the national ambient 
     air quality standards.
       ``(4) Interim provision.--Until the effective date of a 
     regulation promulgated under paragraph (2), the following 
     guidance issued by the Administrator shall continue to apply:
       ``(A) Guidance on the identification and use of air quality 
     data affected by exceptional events (July 1986).
       ``(B) Areas affected by PM-10 natural events, May 30, 1996.
       ``(C) Appendices I, K, and N to part 50 of title 40, Code 
     of Federal Regulations.''.

     SEC. 6014. FEDERAL PROCUREMENT OF RECYCLED COOLANT.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the President shall conduct a review 
     of Federal procurement policy of recycled coolant.
       (b) Elements.--In conducting the review under subsection 
     (a), the President shall consider recycled coolant produced 
     from processes that--
       (1) are energy efficient;
       (2) generate no hazardous waste (as defined in section 1004 
     of the Solid Waste Disposal Act (42 U.S.C. 6903));
       (3) produce no emissions of air pollutants;
       (4) present lower health and safety risks to employees at a 
     plant or facility; and
       (5) recover at least 97 percent of the glycols from used 
     antifreeze feedstock.

     SEC. 6015. CLEAN SCHOOL BUS PROGRAM.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Alternative fuel.--The term ``alternative fuel'' 
     means--
       (A) liquefied natural gas, compressed natural gas, 
     liquefied petroleum gas, hydrogen, or propane;
       (B) methanol or ethanol at no less than 85 percent by 
     volume; or
       (C) biodiesel conforming with standards published by the 
     American Society for Testing and

[[Page H7424]]

     Materials as of the date of enactment of this Act.
       (3) Clean school bus.--The term ``clean school bus'' means 
     a school bus with a gross vehicle weight of greater than 
     14,000 pounds that--
       (A) is powered by a heavy duty engine; and
       (B) is operated solely on an alternative fuel or ultra-low 
     sulfur diesel fuel.
       (4) Eligible recipient.--
       (A) In general.--Subject to subparagraph (B), the term 
     ``eligible recipient'' means--
       (i) one or more local or State governmental entities 
     responsible for providing school bus service to one or more 
     public school systems or the purchase of school buses;
       (ii) one or more contracting entities that provide school 
     bus service to one or more public school systems; or
       (iii) a nonprofit school transportation association.
       (B) Special requirements.--In the case of eligible 
     recipients identified under clauses (ii) and (iii) of 
     subparagraph (A), the Administrator shall establish timely 
     and appropriate requirements for notice and may establish 
     timely and appropriate requirements for approval by the 
     public school systems that would be served by buses purchased 
     or retrofit using grant funds made available under this 
     section.
       (5) Retrofit technology.--The term ``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.
       (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.
       (b) Program for Retrofit or Replacement of Certain Existing 
     School Buses With Clean School Buses.--
       (1) Establishment.--
       (A) In general.--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 recipients for the replacement 
     of, retrofit (including repowering, aftertreatment, and 
     remanufactured engines) of, or purchase of alternative fuels 
     for, certain existing school buses. The awarding of grants 
     for the purchase of alternative fuels should be consistent 
     with the historic funding levels of the program for such 
     purchase.
       (B) Balancing.--In awarding grants under this section, the 
     Administrator shall achieve, to the maximum extent 
     practicable, achieve an appropriate balance between awarding 
     grants--
       (i) to replace school buses;
       (ii) to install retrofit technologies; and
       (iii) to purchase and use alternative fuel.
       (2) Priority of grant applications.--
       (A) Replacement.--In the case of grant applications to 
     replace school buses, the Administrator shall give priority 
     to applicants that propose to replace school buses 
     manufactured before model year 1977.
       (B) Retrofitting.--In the case of grant applications to 
     retrofit school buses, the Administrator shall give priority 
     to applicants that propose to retrofit school buses 
     manufactured in or after model year 1991.
       (3) Use of school bus fleet.--
       (A) In general.--All school buses acquired or retrofitted 
     with funds provided under this section shall be operated as 
     part of the school bus fleet for which the grant was made for 
     not less than 5 years.
       (B) Maintenance, operation, and fueling.--New school buses 
     and retrofit technology shall be maintained, operated, and 
     fueled according to manufacturer recommendations or State 
     requirements.
       (4) Retrofit grants.--The Administrator may award grants 
     under this section for up to 100 percent of the retrofit 
     technologies and installation costs.
       (5) Replacement grants.--
       (A) Eligibility for 50 percent grants.--The Administrator 
     may award grants under this section for replacement of school 
     buses in the amount of up to \1/2\ of the acquisition costs 
     (including fueling infrastructure) for--
       (i) clean school buses with engines manufactured in model 
     year 2005 or 2006 that emit not more than--

       (I) 1.8 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen; and
       (II) .01 grams per brake horsepower-hour of particulate 
     matter; or

       (ii) clean school buses with engines manufactured in model 
     year 2007, 2008, or 2009 that satisfy regulatory requirements 
     established by the Administrator for emissions of oxides of 
     nitrogen and particulate matter to be applicable for school 
     buses manufactured in model year 2010.
       (B) Eligibility for 25 percent grants.--The Administrator 
     may award grants under this section for replacement of school 
     buses in the amount of up to \1/4\ of the acquisition costs 
     (including fueling infrastructure) for--
       (i) clean school buses with engines manufactured in model 
     year 2005 or 2006 that emit not more than--

       (I) 2.5 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen; and
       (II) .01 grams per brake horsepower-hour of particulate 
     matter; or

       (ii) clean school buses with engines manufactured in model 
     year 2007 or thereafter that satisfy regulatory requirements 
     established by the Administrator for emissions of oxides of 
     nitrogen and particulate matter from school buses 
     manufactured in that model year.
       (6) Ultra-low sulfur diesel fuel.--
       (A) In general.--In the case of a grant recipient receiving 
     a grant for the acquisition of ultra-low sulfur diesel fuel 
     school buses with engines manufactured in model year 2005 or 
     2006, the grant recipient shall provide, to the satisfaction 
     of the Administrator--
       (i) documentation that diesel fuel containing sulfur at not 
     more than 15 parts per million is available for carrying out 
     the purposes of the grant; and
       (ii) a commitment by the applicant to use that fuel in 
     carrying out the purposes of the grant.
       (7) Deployment and distribution.--The Administrator, to the 
     maximum extent practicable, shall--
       (A) achieve nationwide deployment of clean school buses 
     through the program under this section; and
       (B) ensure a broad geographic distribution of grant awards, 
     with no State receiving more than 10 percent of the grant 
     funding made available under this section during a fiscal 
     year.
       (8) Annual report.--
       (A) In general.--Not later than January 31 of each year, 
     the Administrator shall submit to Congress a report that--
       (i) evaluates the implementation of this section; and
       (ii) describes--

       (I) the total number of grant applications received;
       (II) the number and types of alternative fuel school buses, 
     ultra-low sulfur diesel fuel school buses, and retrofitted 
     buses requested in grant applications;
       (III) grants awarded and the criteria used to select the 
     grant recipients;
       (IV) certified engine emission levels of all buses 
     purchased or retrofitted under this section;
       (V) an evaluation of the in-use emission level of buses 
     purchased or retrofitted under this section; and
       (VI) any other information the Administrator considers 
     appropriate.

       (c) Education.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall develop an 
     education outreach program to promote and explain the grant 
     program.
       (2) Coordination with stakeholders.--The outreach program 
     shall be designed and conducted in conjunction with national 
     school bus transportation associations and other 
     stakeholders.
       (3) Components.--The outreach program shall--
       (A) inform potential grant recipients on the process of 
     applying for grants;
       (B) describe the available technologies and the benefits of 
     the technologies;
       (C) explain the benefits of participating in the grant 
     program; and
       (D) include, as appropriate, information from the annual 
     report required under subsection (b)(8).
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator to carry out this 
     section, to remain available until expended--
       (1) $55,000,000 for each of fiscal years 2006 and 2007; and
       (2) such sums as are necessary for each of fiscal years 
     2008, 2009, and 2010.

     SEC. 6016. SPECIAL DESIGNATION.

       For the purpose of any applicable program under title 23, 
     United States Code, the city of Norman, Oklahoma, shall be 
     considered to be part of the Oklahoma City urbanized area.

     SEC. 6017. INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
                   FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT 
                   OF CEMENT OR CONCRETE.

       (a) In General.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
                   FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT 
                   OF CEMENT OR CONCRETE.

       ``(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 other than lead 
     slag;
       ``(B) coal combustion fly ash;
       ``(C) blast furnace slag aggregate other than lead slag 
     aggregate;
       ``(D) silica fume; and
       ``(E) 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

[[Page H7425]]

     (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 in 
     section 1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 
     6901) is amended by adding after the item relating to section 
     6004 the following:

``Sec. 6005. Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.''.

     SEC. 6018. USE OF GRANULAR MINE TAILINGS.

       (a) In General.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) (as amended by section 6017(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 in section 
     1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 6901) 
     (as amended by section 6017(b)) is amended by adding after 
     the item relating to section 6005 the following:

``Sec. 6006. Use of granular mine tailings.''.

             TITLE VII--HAZARDOUS MATERIALS TRANSPORTATION

     SEC. 7001. SHORT TITLE.

       This title may be cited as the ``Hazardous Materials 
     Transportation Safety and Security Reauthorization Act of 
     2005''.

     SEC. 7002. AMENDMENT OF TITLE 49, UNITED STATES CODE.

       Except as otherwise expressly provided, whenever in this 
     title 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--General Authorities on Transportation of Hazardous 
                               Materials

     SEC. 7101. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds with respect to hazardous 
     materials transportation that--
       (1) approximately 4,000,000,000 tons of regulated hazardous 
     materials are transported each year and approximately 
     1,200,000 movements of hazardous materials occur each day, 
     according to Department of Transportation estimates;
       (2) the movement of hazardous materials in commerce is 
     necessary to maintain economic vitality and meet consumer 
     demands and must be conducted in a safe, secure, and 
     efficient manner;
       (3) accidents involving, or unauthorized access to, 
     hazardous materials in transportation may result in a release 
     of such materials and pose a serious threat to public health 
     and safety;
       (4) because of the potential risks to life, property, and 
     the environment posed by unintentional releases of hazardous 
     materials, consistency in laws and regulations governing the 
     transportation of hazardous materials is necessary and 
     desirable; and
       (5) in order to provide reasonable, adequate, and cost-
     effective protection from the risks posed by the 
     transportation of hazardous materials, a network of well-
     trained State and local emergency response personnel and 
     hazmat employees is essential.
       (b) Purpose.--Section 5101 is amended by striking ``The 
     purpose'' and all that follows through the period at the end 
     and inserting the following: ``The purpose of this chapter is 
     to protect against the risks to life, property, and the 
     environment that are inherent in the transportation of 
     hazardous material in intrastate, interstate, and foreign 
     commerce.''.

     SEC. 7102. DEFINITIONS.

       Section 5102 is amended as follows:
       (1) Commerce.--Paragraph (1) is amended--
       (A) by striking ``or'' after the semicolon in subparagraph 
     (A);
       (B) by striking ``State.'' in subparagraph (B) and 
     inserting ``State; or''; and
       (C) by adding at the end the following:
       ``(C) on a United States-registered aircraft.''.
       (2) Hazmat employee.--Paragraph (3)(A) is amended--
       (A) by striking clause (i) and inserting the following:
       ``(i) who--

       ``(I) is employed on a full time, part time, or temporary 
     basis by a hazmat employer; or
       ``(II) is self-employed (including an owner-operator of a 
     motor vehicle, vessel, or aircraft) transporting hazardous 
     material in commerce; and'';

       (B) in clause (ii)--
       (i) by striking ``course of employment'' and inserting 
     ``course of such full time, part time, or temporary 
     employment, or such self employment,''; and
       (ii) by adding ``and'' after the semicolon;
       (C) by striking subparagraph (B) and redesignating 
     subparagraph (C) as subparagraph (B); and
       (D) in subparagraph (B), as so redesignated--
       (i) by striking ``employed by a hazmat employer,'' and 
     inserting ``employed on a full time, part time, or temporary 
     basis by a hazmat employer, or self employed,''; and
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or sold as qualified for use in 
     transporting hazardous material in commerce;''.
       (3) Hazmat employer.--Paragraph (4) is amended to read as 
     follows:
       ``(4) `hazmat employer'--
       ``(A) means a person--
       ``(i) who--

       ``(I) employs or uses at least 1 hazmat employee on a full 
     time, part time, or temporary basis; or
       ``(II) is self-employed (including an owner-operator of a 
     motor vehicle, vessel, or aircraft) transporting hazardous 
     material in commerce; and

       ``(ii) who--

       ``(I) transports hazardous material in commerce;
       ``(II) causes hazardous material to be transported in 
     commerce; or
       ``(III) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or

[[Page H7426]]

     sold as qualified for use in transporting hazardous material 
     in commerce; and

       ``(B) includes a department, agency, or instrumentality of 
     the United States Government, or an authority of a State, 
     political subdivision of a State, or Indian tribe, carrying 
     out an activity described in clause (ii).''.
       (4) Imminent hazard.--Paragraph (5) is amended by inserting 
     ``relating to hazardous material'' after ``of a condition''.
       (5) Motor carrier.--Paragraph (7) is amended to read as 
     follows:
       ``(7) `motor carrier'--
       ``(A) means a motor carrier, motor private carrier, and 
     freight forwarder as those terms are defined in section 
     13102; but
       ``(B) does not include a freight forwarder, as so defined, 
     if the freight forwarder is not performing a function 
     relating to highway transportation.''.
       (6) National response team.--Paragraph (8) is amended--
       (A) by striking ``national response team'' both places it 
     appears and inserting ``National Response Team''; and
       (B) by striking ``national contingency plan'' and inserting 
     ``National Contingency Plan''.
       (7) Person.--Paragraph (9)(A) is amended to read as 
     follows:
       ``(A) includes a government, Indian tribe, or authority of 
     a government or tribe that--
       ``(i) offers hazardous material for transportation in 
     commerce;
       ``(ii) transports hazardous material to further a 
     commercial enterprise; or
       ``(iii) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or sold as qualified for use in 
     transporting hazardous material in commerce; but''.
       (8) Secretary of transportation.--Section 5102 is further 
     amended--
       (A) by redesignating paragraphs (11), (12), and (13) as 
     paragraphs (12), (13), and (14), respectively; and
       (B) by inserting after paragraph (10) the following:
       ``(11) `Secretary' means the Secretary of Transportation 
     except as otherwise provided.''.

     SEC. 7103. GENERAL REGULATORY AUTHORITY.

       (a) Designating Material as Hazardous.--Section 5103(a) is 
     amended--
       (1) by striking ``etiologic agent'' and all that follows 
     through ``corrosive material,'' and inserting ``infectious 
     substance, flammable or combustible liquid, solid, or gas, 
     toxic, oxidizing, or corrosive material,''; and
       (2) by striking ``decides'' and inserting ``determines''.
       (b) Regulations for Safe Transportation.--Section 
     5103(b)(1)(A) is amended to read as follows:
       ``(A) apply to a person who--
       ``(i) transports hazardous material in commerce;
       ``(ii) causes hazardous material to be transported in 
     commerce;
       ``(iii) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or sold as qualified for use in 
     transporting hazardous material in commerce;
       ``(iv) prepares or accepts hazardous material for 
     transportation in commerce;
       ``(v) is responsible for the safety of transporting 
     hazardous material in commerce;
       ``(vi) certifies compliance with any requirement under this 
     chapter; or
       ``(vii) misrepresents whether such person is engaged in any 
     activity under clause (i) through (vi); and''.
       (c) Technical Amendment Regarding Consultation.--Section 
     5103 is amended--
       (1) by striking subsection (b)(1)(C); and
       (2) by adding at the end the following:
       ``(c) Consultation.--When prescribing a security regulation 
     or issuing a security order that affects the safety of the 
     transportation of hazardous material, the Secretary of 
     Homeland Security shall consult with the Secretary of 
     Transportation.''.

     SEC. 7104. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.

       (a) Covered Hazardous Materials.--Section 5103a(b) is 
     amended by striking ``with respect to--'' and all that 
     follows and inserting ``with respect to any material defined 
     as hazardous material by the Secretary for which the 
     Secretary requires placarding of a commercial motor vehicle 
     transporting that material in commerce.''.
       (b) Recommendations on Chemical or Biological Materials.--
     Section 5103a is further amended--
       (1) by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Recommendations on Chemical and Biological 
     Materials.--The Secretary of Health and Human Services shall 
     recommend to the Secretary of Transportation any chemical or 
     biological material or agent for regulation as a hazardous 
     material under section 5103(a) if the Secretary of Health and 
     Human Services determines that such material or agent poses a 
     significant risk to the health of individuals.''.
       (c) Conforming Amendment.--Section 5103a(a)(1) is amended 
     by striking ``subsection (c)(1)(B),'' and inserting 
     ``subsection (d)(1)(B),''.

     SEC. 7105. BACKGROUND CHECKS FOR DRIVERS HAULING HAZARDOUS 
                   MATERIALS.

       Section 5103a is further amended by adding at the end the 
     following:
       ``(g) Background Checks for Drivers Hauling Hazardous 
     Materials.--
       ``(1) In general.--
       ``(A) Employer notification.--Not later than 90 days after 
     the date of enactment of this subsection, the Director of the 
     Transportation Security Administration, after receiving 
     comments from interested parties, shall develop and implement 
     a process for notifying hazmat employers designated by an 
     applicant of the results of the applicant's background record 
     check, if--
       ``(i) such notification is appropriate considering the 
     potential security implications; and
       ``(ii) the Director, in a final notification of threat 
     assessment, served on the applicant determines that the 
     applicant does not meet the standards set forth in 
     regulations issued to carry out this section.
       ``(B) Relationship to other background records checks.--
       ``(i) Elimination of redundant checks.--An individual with 
     respect to whom the Transportation Security Administration--

       ``(I) has performed a security threat assessment under this 
     section; and
       ``(II) has issued a final notification of no security 
     threat,

      is deemed to have met the requirements of any other 
     background check that is required for purposes of any Federal 
     law applicable to transportation workers if that background 
     check is equivalent to, or less stringent than, the 
     background check required under this section.
       ``(ii) Determination by director.--Not later than 60 days 
     after the date of issuance of the report under paragraph (5), 
     but no later than 120 days after the date of enactment of 
     this Act, the Director shall initiate a rulemaking 
     proceeding, including notice and opportunity for comment, to 
     determine which background checks required for purposes of 
     Federal laws applicable to transportation workers are 
     equivalent to, or less stringent than, those required under 
     this section.
       ``(iii) Future rulemakings.--The Director shall make a 
     determination under the criteria established under clause 
     (ii) with respect to any rulemaking proceeding to establish 
     or modify required background checks for transportation 
     workers initiated after the date of enactment of this 
     subsection.
       ``(2) Appeals process for more stringent state 
     procedures.--If a State establishes its own standards for 
     applicants for a hazardous materials endorsement to a 
     commercial driver's license, the State shall also provide--
       ``(A) an appeals process similar to and to the same extent 
     as the process provided under part 1572 of title 49, Code of 
     Federal Regulations, by which an applicant denied a hazardous 
     materials endorsement to a commercial driver's license by 
     that State may appeal that denial; and
       ``(B) a waiver process similar to and to the same extent as 
     the process provided under part 1572 of title 49, Code of 
     Federal Regulations, by which an applicant denied a hazardous 
     materials endorsement to a commercial driver's license by 
     that State may apply for a waiver.
       ``(3) Clarification of term defined in regulations.--The 
     term `transportation security incident', as defined in part 
     1572 of title 49, Code of Federal Regulations, does not 
     include a work stoppage or other nonviolent employee-related 
     action resulting from an employer-employee dispute. Not later 
     than 30 days after the date of enactment of this subsection, 
     the Director shall modify the definition of that term to 
     reflect the preceding sentence.
       ``(4) Background check capacity.--Not later than October 1, 
     2005, the Director shall transmit to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committees on Transportation and Infrastructure and Homeland 
     Security of the House of Representatives a report on the 
     implementation of fingerprint-based security threat 
     assessments and the adequacy of fingerprinting locations, 
     personnel, and resources to accomplish the timely processing 
     of fingerprint-based security threat assessments for 
     individuals holding commercial driver's licenses who are 
     applying to renew hazardous materials endorsements.
       ``(5) Report.--
       ``(A) In general.--Not later than 60 days after the date of 
     enactment of this subsection, the Director shall transmit to 
     the committees referred to in paragraph (4) a report on the 
     Director's plans to reduce or eliminate redundant background 
     checks for holders of hazardous materials endorsements 
     performed under this section.
       ``(B) Contents.--The report shall--
       ``(i) include a list of background checks and other 
     security or threat assessment requirements applicable to 
     transportation workers under Federal laws for which the 
     Department of Homeland Security is responsible and the 
     process by which the Secretary of Homeland Security will 
     determine whether such checks or assessments are equivalent 
     to, or less stringent than, the background check performed 
     under this section; and
       ``(ii) provide an analysis of how the Director plans to 
     reduce or eliminate redundant background checks in a manner 
     that will continue to ensure the highest level of safety and 
     security.
       ``(h) Commercial Motor Vehicle Operators Registered To 
     Operate in Mexico or Canada.--
       ``(1) In general.--Beginning on the date that is 6 months 
     after the date of enactment of this subsection, a commercial 
     motor vehicle operator registered to operate in Mexico or 
     Canada shall not operate a commercial motor vehicle 
     transporting a hazardous material in commerce in the United 
     States until the operator has undergone a background records 
     check similar to the background records check required for 
     commercial motor vehicle operators licensed in the United 
     States to transport hazardous materials in commerce.
       ``(2) Extension.--The Director of the Transportation 
     Security Administration may extend the deadline established 
     by paragraph (1) for a

[[Page H7427]]

     period not to exceed 6 months if the Director determines that 
     such an extension is necessary.
       ``(3) Commercial motor vehicle defined.--In this 
     subsection, the term `commercial motor vehicle' has the 
     meaning given that term by section 31101.''.

     SEC. 7106. REPRESENTATION AND TAMPERING.

       (a) Representation.--Section 5104(a)(1) is amended--
       (1) by striking ``a container,'' and all that follows 
     through ``packaging) for'' and inserting ``a package, 
     component of a package, or packaging for''; and
       (2) by striking ``the container'' and all that follows 
     through ``packaging) meets'' and inserting ``the package, 
     component of a package, or packaging meets''.
       (b) Tampering.--Section 5104(b) is amended--
       (1) by striking ``A person may not'' and inserting ``No 
     person may''; and
       (2) in paragraph (2) by inserting ``component of a package, 
     or packaging,'' after ``package,''.

     SEC. 7107. TECHNICAL AMENDMENTS.

       Section 5105 is amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsection (e) as subsection (d).

     SEC. 7108. TRAINING OF CERTAIN EMPLOYEES.

       Section 5107 is amended--
       (1) by striking subsection (e) and inserting the following:
       ``(e) Training Grants.--
       ``(1) In general.--Subject to the availability of funds 
     under section 5128(c), the Secretary shall make grants under 
     this subsection--
       ``(A) for training instructors to train hazmat employees; 
     and
       ``(B) to the extent determined appropriate by the 
     Secretary, for such instructors to train hazmat employees.
       ``(2) Eligibility.--A grant under this subsection shall be 
     made to a nonprofit hazmat employee organization that 
     demonstrates--
       ``(A) expertise in conducting a training program for hazmat 
     employees; and
       ``(B) the ability to reach and involve in a training 
     program a target population of hazmat employees.'';
       (2) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively;
       (3) by inserting after subsection (e) the following:
       ``(f) Training of Certain Employees.--The Secretary shall 
     ensure that maintenance-of-way employees and railroad 
     signalmen receive general awareness and familiarization 
     training and safety training pursuant to section 172.704 of 
     title 49, Code of Federal Regulations.''; and
       (4) in subsection (g)(2) (as redesignated by paragraph (2) 
     of this subsection) by striking ``sections 5106, 5108(a)-
     (g)(1) and (h), and 5109 of this title'' and inserting 
     ``section 5106''.

     SEC. 7109. REGISTRATION.

       (a) Persons Required To File.--
       (1) Requirement to file.--Section 5108(a)(1)(B) is amended 
     by striking ``class A or B explosive'' and inserting 
     ``Division 1.1, 1.2, or 1.3 explosive material''.
       (2) Authority to require to file.--Section 5108(a)(2)(B) is 
     amended to read as follows:
       ``(B) a person designing, manufacturing, fabricating, 
     inspecting, marking, maintaining, reconditioning, repairing, 
     or testing a package, container, or packaging component that 
     is represented, marked, certified, or sold as qualified for 
     use in transporting hazardous material in commerce.''.
       (3) No transportation without filing.--Section 5108(a)(3) 
     is amended by striking ``manufacture,'' and all that follows 
     through ``package or'' and inserting ``design, manufacture, 
     fabricate, inspect, mark, maintain, recondition, repair, or 
     test a package, container packaging component, or''.
       (b) Form and Content of Filings.--Section 5108(b)(1)(C) is 
     amended by striking ``the activity.'' and inserting ``any of 
     the activities.''.
       (c) Filing.--Section 5108(c) is amended to read as follows:
       ``(c) Filing.--Each person required to file a registration 
     statement under subsection (a) shall file the statement in 
     accordance with regulations prescribed by the Secretary.''.
       (d) Registration.--As soon as practicable, the 
     Administrator of the Pipeline and Hazardous Materials Safety 
     Administration shall transmit to the Federal Motor Carrier 
     Safety Administration hazardous material registrant 
     information obtained before, on, or after the date of 
     enactment of this Act under section 5108 of title 49, United 
     States Code, together with any Department of Transportation 
     identification number for each registrant.
       (e) Relationship to Other Laws.--Section 5108(i)(2)(B) is 
     amended by inserting ``an Indian tribe,'' after ``subdivision 
     of a State,''.
       (f) Fees.--Section 5108(g) is amended--
       (1) in paragraph (1) by striking ``may'' and inserting 
     ``shall'';
       (2) in paragraph (2)(A) by striking ``$5,000'' and 
     inserting ``$3,000''; and
       (3) by adding at the end the following:
       ``(3) Fees on exempt persons.--Notwithstanding subsection 
     (a)(4), the Secretary shall impose and collect a fee of $25 
     from a person who is required to register under this section 
     but who is otherwise exempted by the Secretary from paying 
     any fee under this section. The fee shall be used to pay the 
     costs incurred by the Secretary in processing registration 
     statements filed by such persons.''.

     SEC. 7110. SHIPPING PAPERS AND DISCLOSURE.

       (a) Disclosure Considerations and Requirements.--Section 
     5110 is amended--
       (1) by striking ``under subsection (b) of this section.'' 
     in subsection (a) and inserting ``in regulations.'';
       (2) by striking subsection (b); and
       (3) by redesignating subsections (c), (d), and (e) as 
     subsections (b), (c), and (d), respectively.
       (b) Retention of Papers.--Subsection (d) of section 5110, 
     as redesignated by subsection (a)(3) of this section, is 
     amended to read as follows:
       ``(d) Retention of Papers.--
       ``(1) Shippers.--The person who provides the shipping paper 
     under this section shall retain the paper, or an electronic 
     format of it, for a period of 2 years after the date that the 
     shipping paper is provided to the carrier, with the paper or 
     electronic format to be accessible through the shipper's 
     principal place of business.
       ``(2) Carriers.--The carrier required to keep the shipping 
     paper under this section, shall retain the paper, or an 
     electronic format of it, for a period of 1 year after the 
     date that the shipping paper is provided to the carrier, with 
     the paper or electronic format to be accessible through the 
     carrier's principal place of business.
       ``(3) Availability to government agencies.--Any person 
     required to keep a shipping paper under this subsection 
     shall, upon request, make it available to a Federal, State, 
     or local government agency at reasonable times and 
     locations.''.

     SEC. 7111. RAIL TANK CARS.

       Section 5111, and the item relating to section 5111 in the 
     analyis for chapter 51, are repealed.

     SEC. 7112. UNSATISFACTORY SAFETY RATINGS.

       (a) In General.--The text of section 5113 is amended to 
     read as follows: ``A violation of section 31144(c)(3) shall 
     be considered a violation of this chapter, and shall be 
     subject to the penalties in sections 5123 and 5124.''.
       (b) Conforming Amendments.--The first subsection (c) of 
     section 31144, relating to prohibited transportation, is 
     amended--
       (1) in paragraph (1) by striking ``sections 521(b)(5)(A) 
     and 5113'' and inserting ``section 521(b)(5)(A)''; and
       (2) by adding at the end of paragraph (3) the following: 
     ``A violation of this paragraph by an owner or operator 
     transporting hazardous material shall be considered a 
     violation of chapter 51, and shall be subject to the 
     penalties in sections 5123 and 5124.''.
       (c) Technical Correction.--The second subsection (c) of 
     section 31144, relating to safety reviews of new operators, 
     is redesignated as subsection (f).

     SEC. 7113. TRAINING CURRICULUM FOR THE PUBLIC SECTOR.

       (a) In General.--Section 5115(a) is amended by striking the 
     subsection designation and all that follows through the 
     period at the end of the first sentence and inserting the 
     following:
       ``(a) In General.--In coordination with the Director of the 
     Federal Emergency Management Agency, the Chairman of the 
     Nuclear Regulatory Commission, the Administrator of the 
     Environmental Protection Agency, the Secretaries of Labor, 
     Energy, and Health and Human Services, and the Director of 
     the National Institute of Environmental Health Sciences, and 
     using existing coordinating mechanisms of the National 
     Response Team and, for radioactive material, the Federal 
     Radiological Preparedness Coordinating Committee, the 
     Secretary of Transportation shall maintain, and update 
     periodically, a current curriculum of courses necessary to 
     train public sector emergency response and preparedness teams 
     in matters relating to the transportation of hazardous 
     material.''.
       (b) Requirements.--Section 5115(b) is amended--
       (1) in the matter preceding paragraph (1) by striking 
     ``developed'' and inserting ``maintained and updated''; and
       (2) in paragraph (1)(C) by striking ``under other United 
     States Government grant programs, including those'' and 
     inserting ``with Federal financial assistance, including 
     programs''.
       (c) Training on Complying With Legal Requirements.--Section 
     5115(c)(3) is amended by inserting before the period at the 
     end the following: ``and such other voluntary consensus 
     standard-setting organizations as the Secretary of 
     Transportation determines appropriate''.
       (d) Distribution and Publication.--Section 5115(d) is 
     amended--
       (1) in the matter preceding paragraph (1) by striking 
     ``national response team'' and inserting ``National Response 
     Team'';
       (2) in paragraph (1) by striking ``Director of the Federal 
     Emergency Management Agency'' and inserting ``Secretary''; 
     and
       (3) in paragraph (2)--
       (A) by inserting ``and distribute'' after ``publish''; and
       (B) by striking ``programs that uses'' and all that follows 
     before the period at the end and inserting ``programs and 
     courses maintained and updated under this section and of any 
     programs utilizing such courses''.

     SEC. 7114. PLANNING AND TRAINING GRANTS; HAZARDOUS MATERIALS 
                   EMERGENCY PREPAREDNESS FUND.

       (a) Maintenance of Effort.--Sections 5116(a)(2)(A) and 
     5116(b)(2)(A) are amended by striking ``2 fiscal years'' and 
     inserting ``5 fiscal years''.
       (b) Monitoring and Technical Assistance.--Section 5116(f) 
     is amended by striking ``national response team'' and 
     inserting ``National Response Team''.
       (c) Delegation of Authority.--Section 5116(g) is amended by 
     striking ``Government grant programs'' and inserting 
     ``Federal financial assistance''.
       (d) Hazardous Materials Emergency Preparedness Fund.--
       (1) Name of fund.--Section 5116(i) is amended by inserting 
     after ``an account in the Treasury'' the following: ``(to be 
     known as the `Hazardous Materials Emergency Preparedness 
     Fund')''.
       (2) Publication of emergency response guide.--Section 
     5116(i) is further amended--
       (A) by striking ``collects under section 5108(g)(2)(A) of 
     this title and'';
       (B) by striking ``and'' after the semicolon in paragraph 
     (2);
       (C) by redesignating paragraph (3) as paragraph (4);
       (D) by inserting after paragraph (2) the following:

[[Page H7428]]

       ``(3) to publish and distribute an emergency response 
     guide; and''; and
       (E) in paragraph (4) (as redesignated by subparagraph (C) 
     of this paragraph) by striking ``10 percent'' and inserting 
     ``2 percent''.
       (3) Conforming amendment.--Section 5108(g)(2)(C) is amended 
     by striking ``the account the Secretary of the Treasury 
     establishes'' and inserting ``the Hazardous Materials 
     Emergency Preparedness Fund established''.
       (e) Reports.--Section 5116(k) is amended--
       (1) by striking the first sentence and inserting the 
     following: ``The Secretary shall submit annually to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science, 
     and Transportation of the Senate and make available to the 
     public information on the allocation and uses of the planning 
     grants allocated under subsection (a), training grants under 
     subsection (b), and grants under subsection (j) of this 
     section and under section 5107.''; and
       (2) by striking ``Such report'' in the second sentence and 
     inserting ``The report''.

     SEC. 7115. SPECIAL PERMITS AND EXCLUSIONS.

       (a) Section Heading.--
       (1) In general.--Section 5117 is amended by striking the 
     section designation and heading and inserting the following:

     ``Sec. 5117. Special permits and exclusions''.

       (2) Conforming amendment.--The item relating to section 
     5117 in the analysis for chapter 51 is amended to read as 
     follows:

``5117. Special permits and exclusions.''.
       (b) Subsection Heading.--The heading for subsection (a) of 
     section 5117 is amended by striking ``Exempt'' and inserting 
     ``Issue Special Permits''.
       (c) Authority to Issue Special Permits.--Section 5117(a)(1) 
     is amended--
       (1) by striking ``an exemption'' and inserting ``, modify, 
     or terminate a special permit authorizing a variance''; and
       (2) by striking ``transporting, or causing to be 
     transported, hazardous material'' and inserting ``performing 
     a function regulated by the Secretary under section 
     5103(b)(1)''.
       (d) Period of Special Permit.--Section 5117(a)(2) is 
     amended to read as follows:
       ``(2) A special permit issued under this section shall be 
     effective for an initial period of not more than 2 years and 
     may be renewed by the Secretary upon application for 
     successive periods of not more than 4 years each or, in the 
     case of a special permit relating to section 5112, for an 
     additional period of not more than 2 years.''.
       (e) Applications.--Sections 5117(b) is amended--
       (1) by striking ``an exemption'' each place it appears and 
     inserting ``a special permit''; and
       (2) by striking ``the exemption'' and inserting ``the 
     special permit''.
       (f) Dealing With Applications Promptly.--Section 5117(c) is 
     amended by striking ``the exemption'' each place it appears 
     and inserting ``the special permit''.
       (g) Limitation on Authority.--Section 5117(e) is amended--
       (1) by striking ``an exemption'' and inserting ``a special 
     permit''; and
       (2) by striking ``be exempt'' and inserting ``be granted a 
     variance''.
       (h) Repeal of Section 5118.--Section 5118, and the item 
     relating to such section in the analysis for chapter 51, are 
     repealed.

     SEC. 7116. UNIFORM FORMS AND PROCEDURES.

       Section 5119 is amended to read as follows:

     ``Sec. 5119. Uniform forms and procedures

       ``(a) Establishment of Working Group.--The Secretary shall 
     establish a working group of State and local government 
     officials, including representatives of the National 
     Governors' Association, the National Association of Counties, 
     the National League of Cities, the United States Conference 
     of Mayors, the National Conference of State Legislatures, and 
     the Alliance for Uniform Hazmat Transportation Procedures.
       ``(b) Purpose of Working Group.--The purpose of the working 
     group shall be to develop uniform forms and procedures for a 
     State to register, and to issue permits to, persons that 
     transport, or cause to be transported, hazardous material by 
     motor vehicle in the State.
       ``(c) Limitation on Working Group.--The working group may 
     not propose to define or limit the amount of a fee a State 
     may impose or collect.
       ``(d) Procedure.--The Secretary shall develop a procedure 
     for the working group to employ in developing recommendations 
     for the Secretary to harmonize existing State registration 
     and permit laws and regulations relating to the 
     transportation of hazardous materials, with special attention 
     paid to each State's unique safety concerns and interest in 
     maintaining strong hazmat safety standards.
       ``(e) Report of Working Group.--Not later than 18 months 
     after the date of enactment of this subsection, the working 
     group shall transmit to the Secretary a report containing 
     recommendations for establishing uniform forms and procedures 
     described in subsection (b).
       ``(f) Regulations.--Not later than 18 months after the date 
     the working group's report is delivered to the Secretary, the 
     Secretary shall issue regulations to carry out such 
     recommendations of the working group as the Secretary 
     considers appropriate. In developing such regulations, the 
     Secretary shall consider the State needs associated with the 
     transition to and implementation of a uniform forms and 
     procedures program.
       ``(g) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed as prohibiting a State from 
     voluntarily participating in a program of uniform forms and 
     procedures until such time as the Secretary issues 
     regulations under subsection (f).''.

     SEC. 7117. INTERNATIONAL UNIFORMITY OF STANDARDS AND 
                   REQUIREMENTS.

       (a) Consultation.--Section 5120(b) is amended by inserting 
     ``and requirements'' after ``standards''.
       (b) Differences With International Standards and 
     Requirements.--Section 5120(c) is amended--
       (1) in paragraph (1) by inserting ``or requirement'' after 
     ``standard'' each place it appears; and
       (2) in paragraph (2)--
       (A) by inserting ``standard or'' before ``requirement'' 
     each place it appears; and
       (B) by striking ``included in a standard''.

     SEC. 7118. ADMINISTRATIVE AUTHORITY.

       (a) General Authority.--Section 5121(a) is amended--
       (1) in the first sentence by inserting ``conduct tests,'' 
     after ``investigate,'';
       (2) in the second sentence by striking ``After'' and 
     inserting ``Except as provided in subsections (c) and (d), 
     after''; and
       (3) by striking ``regulation prescribed'' and inserting 
     ``regulation prescribed, or an order, special permit, or 
     approval issued,''.
       (b) Records, Reports, and Information.--Section 5121(b) is 
     amended--
       (1) in paragraph (1) by inserting ``and property'' after 
     ``records''; and
       (2) in paragraph (2)--
       (A) by inserting ``property,'' after ``records,'';
       (B) by inserting ``for inspection'' after ``available''; 
     and
       (C) by striking ``requests'' and inserting ``undertakes an 
     investigation or makes a request''.
       (c) Enhanced Authority To Discover Hidden Shipments of 
     Hazardous Material.--Section 5121(c) is amended to read as 
     follows:
       ``(c) Inspections and Investigations.--
       ``(1) In general.--A designated officer, employee, or agent 
     of the Secretary--
       ``(A) may inspect and investigate, at a reasonable time and 
     in a reasonable manner, records and property relating to a 
     function described in section 5103(b)(1);
       ``(B) except in the case of packaging immediately adjacent 
     to its hazardous material contents, may gain access to, open, 
     and examine a package offered for, or in, transportation when 
     the officer, employee, or agent has an objectively reasonable 
     and articulable belief that the package may contain a 
     hazardous material;
       ``(C) may remove from transportation a package or related 
     packages in a shipment offered for or in transportation for 
     which--
       ``(i) such officer, employee, or agent has an objectively 
     reasonable and articulable belief that the package may pose 
     an imminent hazard; and
       ``(ii) such officer, employee, or agent contemporaneously 
     documents such belief in accordance with procedures set forth 
     in guidance or regulations prescribed under subsection (e);
       ``(D) may gather information from the offeror, carrier, 
     packaging manufacturer or tester, or other person responsible 
     for the package, to ascertain the nature and hazards of the 
     contents of the package;
       ``(E) as necessary, under terms and conditions specified by 
     the Secretary, may order the offeror, carrier, packaging 
     manufacturer or tester, or other person responsible for the 
     package to have the package transported to, opened, and the 
     contents examined and analyzed, at a facility appropriate for 
     the conduct of such examination and analysis; and
       ``(F) when safety might otherwise be compromised, may 
     authorize properly qualified personnel to assist in the 
     activities conducted under this subsection.
       ``(2) Display of credentials.--An officer, employee, or 
     agent acting under this subsection shall display proper 
     credentials when requested.
       ``(3) Safe resumption of transportation.--In instances 
     when, as a result of an inspection or investigation under 
     this subsection, an imminent hazard is not found to exist, 
     the Secretary, in accordance with procedures set forth in 
     regulations prescribed under subsection (e), shall assist--
       ``(A) in the safe and prompt resumption of transportation 
     of the package concerned; or
       ``(B) in any case in which the hazardous material being 
     transported is perishable, in the safe and expeditious 
     resumption of transportation of the perishable hazardous 
     material.''.
       (d) Emergency Authority for Hazardous Material 
     Transportation.--Section 5121 is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (f) and (h), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) Emergency Orders.--
       ``(1) In general.--If, upon inspection, investigation, 
     testing, or research, the Secretary determines that a 
     violation of a provision of this chapter, or a regulation 
     prescribed under this chapter, or an unsafe condition or 
     practice, constitutes or is causing an imminent hazard, the 
     Secretary may issue or impose emergency restrictions, 
     prohibitions, recalls, or out-of-service orders, without 
     notice or an opportunity for a hearing, but only to the 
     extent necessary to abate the imminent hazard.
       ``(2) Written orders.--The action of the Secretary under 
     paragraph (1) shall be in a written emergency order that--
       ``(A) describes the violation, condition, or practice that 
     constitutes or is causing the imminent hazard;
       ``(B) states the restrictions, prohibitions, recalls, or 
     out-of-service orders issued or imposed; and
       ``(C) describes the standards and procedures for obtaining 
     relief from the order.
       ``(3) Opportunity for review.--After taking action under 
     paragraph (1), the Secretary shall provide for review of the 
     action under section 554 of title 5 if a petition for review 
     is filed within 20 calendar days of the date of issuance of 
     the order for the action.
       ``(4) Expiration of effectivenesss of order.--If a petition 
     for review of an action is

[[Page H7429]]

     filed under paragraph (3) and the review under that paragraph 
     is not completed by the end of the 30-day period beginning on 
     the date the petition is filed, the action shall cease to be 
     effective at the end of such period unless the Secretary 
     determines, in writing, that the imminent hazard providing a 
     basis for the action continues to exist.
       ``(5) Out of service order defined.--In this subsection, 
     the term `out-of-service order' means a requirement that an 
     aircraft, vessel, motor vehicle, train, railcar, locomotive, 
     other vehicle, transport unit, transport vehicle, freight 
     container, potable tank, or other package not be moved until 
     specified conditions have been met.
       ``(e) Regulations.--
       ``(1) Temporary regulations.--Not later than 60 days after 
     the date of enactment of the Hazardous Materials 
     Transportation Safety and Security Reauthorization Act of 
     2005, the Secretary shall issue temporary regulations to 
     carry out subsections (c) and (d). The temporary regulations 
     shall expire on the date of issuance of the regulations under 
     paragraph (2).
       ``(2) Final regulations.--Not later than 1 year after such 
     date of enactment, the Secretary shall issue regulations to 
     carry out subsections (c) and (d) in accordance with 
     subchapter II of chapter 5 of title 5.''.
       (e) Grants and Cooperative Agreements.--Section 5121 is 
     amended by inserting after subsection (f) (as redesignated by 
     subsection (d)(1) of this section) the following:
       ``(g) Grants and Cooperative Agreements.--The Secretary may 
     enter into grants and cooperative agreements with a person, 
     agency, or instrumentality of the United States, a unit of 
     State or local government, an Indian tribe, a foreign 
     government (in coordination with the Department of State), an 
     educational institution, or other appropriate entity--
       ``(1) to expand risk assessment and emergency response 
     capabilities with respect to the security of transportation 
     of hazardous material;
       ``(2) to enhance emergency communications capacity as 
     determined necessary by the Secretary, including the use of 
     integrated, interoperable emergency communications 
     technologies where appropriate;
       ``(3) to conduct research, development, demonstration, risk 
     assessment, and emergency response planning and training 
     activities; or
       ``(4) to otherwise carry out this chapter.''.
       (f) Report.--Section 5121(h) (as redesignated by subsection 
     (d)(1) of this section) is amended--
       (1) in the matter preceding paragraph (1) by striking 
     ``submit to the President for transmittal to the Congress'' 
     and inserting ``transmit to the Committee on Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate''; and
       (2) in paragraph (4) by inserting ``relating to a function 
     regulated by the Secretary under section 5103(b)(1)'' after 
     ``activities''.

     SEC. 7119. ENFORCEMENT.

       (a) In General.--Section 5122(a) is amended--
       (1) in the first sentence by striking ``chapter or a 
     regulation prescribed or order'' and inserting ``chapter or a 
     regulation prescribed or order, special permit, or 
     approval''; and
       (2) by striking the second sentence and inserting the 
     following: ``The court may award appropriate relief, 
     including a temporary or permanent injunction, punitive 
     damages, and assessment of civil penalties considering the 
     same penalty amounts and factors as prescribed for the 
     Secretary in an administrative case under section 5123.''.
       (b) Imminent Hazards.--Section 5122(b)(1)(B) is amended by 
     striking ``or ameliorate the'' and inserting ``or mitigate 
     the''.

     SEC. 7120. CIVIL PENALTY.

       (a) Penalty.--Section 5123(a) is amended--
       (1) in paragraph (1)--
       (A) by striking ``regulation prescribed or order issued'' 
     and inserting ``regulation, order, special permit, or 
     approval issued''; and
       (B) by striking ``$25,000'' and inserting ``$50,000'';
       (2) by redesignating paragraph (2) as paragraph (4); and
       (3) by inserting after paragraph (1) the following:
       ``(2) If the Secretary finds that a violation under 
     paragraph (1) results in death, serious illness, or severe 
     injury to any person or substantial destruction of property, 
     the Secretary may increase the amount of the civil penalty 
     for such violation to not more than $100,000.
       ``(3) If the violation is related to training, paragraph 
     (1) shall be applied by substituting `$450' for `$250'.''.
       (b) Hearing Requirement.--Section 5123(b) is amended by 
     striking ``regulation prescribed'' and inserting ``regulation 
     prescribed or order, special permit, or approval issued''.
       (c) Civil Actions To Collect.--Section 5123(d) is amended 
     by striking ``section.'' and inserting ``section and any 
     accrued interest on the civil penalty as calculated in 
     accordance with section 1005 of the Oil Pollution Act of 1990 
     (33 U.S.C. 2705). In the civil action, the amount and 
     appropriateness of the civil penalty shall not be subject to 
     review.''.
       (d) Effective Dates.--
       (1) Hearing requirement.--The amendment made by subsection 
     (b) shall take effect on the date of enactment of this Act, 
     and shall apply with respect to violations described in 
     section 5123(a) of title 49, United States Code (as amended 
     by this section), that occur on or after that date.
       (2) Civil actions to collect.--The amendment made by 
     subsection (c) shall apply with respect to civil penalties 
     imposed on violations described in section 5123(a) of title 
     49, United States Code (as amended by this section), that 
     occur on or after the date of enactment of this Act.

     SEC. 7121. CRIMINAL PENALTY.

       Section 5124 is amended to read as follows:

     ``Sec. 5124. Criminal penalty

       ``(a) In General.--A person knowingly violating section 
     5104(b) or willfully or recklessly violating this chapter or 
     a regulation, order, special permit, or approval issued under 
     this chapter shall be fined under title 18, imprisoned for 
     not more than 5 years, or both; except that the maximum 
     amount of imprisonment shall be 10 years in any case in which 
     the violation involves the release of a hazardous material 
     that results in death or bodily injury to any person.
       ``(b) Knowing Violations.--For purposes of this section--
       ``(1) a person acts knowingly when--
       ``(A) the person has actual knowledge of the facts giving 
     rise to the violation; or
       ``(B) a reasonable person acting in the circumstances and 
     exercising reasonable care would have that knowledge; and
       ``(2) knowledge of the existence of a statutory provision, 
     or a regulation or a requirement required by the Secretary, 
     is not an element of an offense under this section.
       ``(c) Willful Violations.--For purposes of this section, a 
     person acts willfully when--
       ``(1) the person has knowledge of the facts giving rise to 
     the violation; and
       ``(2) the person has knowledge that the conduct was 
     unlawful.
       ``(d) Reckless Violations.--For purposes of this section, a 
     person acts recklessly when the person displays a deliberate 
     indifference or conscious disregard to the consequences of 
     that person's conduct.''.

     SEC. 7122. PREEMPTION.

       (a) Substantive Differences.--Section 5125(b) is amended--
       (1) by striking subparagraph (E) of paragraph (1) and 
     inserting the following:
       ``(E) the designing, manufacturing, fabricating, 
     inspecting, marking, maintaining, reconditioning, repairing, 
     or testing a package, container, or packaging component that 
     is represented, marked, certified, or sold as qualified for 
     use in transporting hazardous material in commerce.''; and
       (2) by striking ``prescribes after November 16, 1990. 
     However, the'' in paragraph (2) and inserting ``prescribes. 
     The''.
       (b) Decisions on Preemption.--Section 5125(d)(1) is amended 
     in the first sentence by inserting before the period at the 
     end ``or section 5119(e)''.
       (c) Waiver of Preemption.--Section 5125(e) is amended in 
     the first sentence by inserting before the period at the end 
     ``or section 5119(b)''.
       (d) Standards.--Section 5125 is amended by adding at the 
     end the following:
       ``(h) Application of Each Preemption Standard.--Each 
     standard for preemption in subsection (b), (c)(1), or (d), 
     and in section 5119(b), is independent in its application to 
     a requirement of a State, political subdivision of a State, 
     or Indian tribe.
       ``(i) Non-Federal Enforcement Standards.--This section does 
     not apply to any procedure, penalty, required mental state, 
     or other standard utilized by a State, political subdivision 
     of a State, or Indian tribe to enforce a requirement 
     applicable to the transportation of hazardous material.''.

     SEC. 7123. JUDICIAL REVIEW.

       (a) Repeal.--Section 5125 (as amended by section 7122 of 
     this Act) is further amended--
       (1) by striking subsection (f);
       (2) by redesignating subsections (g), (h), and (i) as 
     subsections (f), (g), and (h), respectively; and
       (3) in subsection (f) (as so redesignated) by moving 
     paragraph (2) (including subparagraphs (A) through (D)) 2 ems 
     to the left.
       (b) Judicial Review.--Chapter 51 is amended by 
     redesignating section 5127 as section 5128 and by inserting 
     after section 5126 the following:

     ``Sec. 5127. Judicial review

       ``(a) Filing and Venue.--Except as provided in section 
     20114(c), a person adversely affected or aggrieved by a final 
     action of the Secretary under this chapter may petition for 
     review of the final action in the United States Court of 
     Appeals for the District of Columbia or in the court of 
     appeals for the United States for the circuit in which the 
     person resides or has its principal place of business. The 
     petition must be filed not more than 60 days after the 
     Secretary's action becomes final.
       ``(b) Judicial Procedures.--When a petition is filed under 
     subsection (a), the clerk of the court immediately shall send 
     a copy of the petition to the Secretary. The Secretary shall 
     file with the court a record of any proceeding in which the 
     final action was issued, as provided in section 2112 of title 
     28.
       ``(c) Authority of Court.--The court has exclusive 
     jurisdiction, as provided in subchapter II of chapter 5 of 
     title 5, to affirm or set aside any part of the Secretary's 
     final action and may order the Secretary to conduct further 
     proceedings.
       ``(d) Requirement for Prior Objection.--In reviewing a 
     final action under this section, the court may consider an 
     objection to a final action of the Secretary only if the 
     objection was made in the course of a proceeding or review 
     conducted by the Secretary or if there was a reasonable 
     ground for not making the objection in the proceeding.''.
       (c) Conforming Amendment.--The analysis for chapter 51 is 
     amended by striking the item relating to section 5127 and 
     inserting the following:

``5127. Judicial review.
``5128. Authorization of appropriations.''.

     SEC. 7124. RELATIONSHIP TO OTHER LAWS.

       Section 5126(a) is amended--
       (1) by striking ``or causes to be transported hazardous 
     material,'' and inserting ``hazardous material, or causes 
     hazardous material to be transported,'';

[[Page H7430]]

       (2) by striking ``manufactures,'' and all that follows 
     through ``or sells'' and inserting ``designs, manufactures, 
     fabricates, inspects, marks, maintains, reconditions, 
     repairs, or tests a package, container, or packaging 
     component that is represented'';
       (3) by striking ``must'' and inserting ``shall''; and
       (4) by striking ``manufacturing,'' and all that follows 
     through ``testing'' and inserting ``designing, manufacturing, 
     fabricating, inspecting, marking, maintaining, 
     reconditioning, repairing, or testing''.

     SEC. 7125. AUTHORIZATION OF APPROPRIATIONS.

       Section 5128 (as redesignated by section 7123(b) of this 
     Act) is amended to read as follows:

     ``Sec. 5128. Authorizations of appropriations

       ``(a) In General.--In order to carry out this chapter 
     (except sections 5107(e), 5108(g)(2), 5113, 5115, 5116, and 
     5119), the following amounts are authorized to be 
     appropriated to the Secretary:
       ``(1) For fiscal year 2005, $24,940,000.
       ``(2) For fiscal year 2006, $29,000,000.
       ``(3) For fiscal year 2007, $30,000,000.
       ``(4) For fiscal year 2008, $30,000,000.
       ``(b) Hazardous Materials Emergency Preparedness Fund.--
     There shall be available to the Secretary, from the account 
     established pursuant to section 5116(i), for each of fiscal 
     years 2005 through 2008 the following:
       ``(1) To carry out section 5115, $200,000.
       ``(2) To carry out sections 5116(a) and (b), $21,800,000 to 
     be allocated as follows:
       ``(A) $5,000,000 to carry out section 5116(a).
       ``(B) $7,800,000 to carry out section 5116(b).
       ``(C) Of the amount provided for by this paragraph for a 
     fiscal year in excess of the suballocations in subparagraphs 
     (A) and (B)--
       ``(i) 35 percent shall be used to carry out section 
     5116(a); and
       ``(ii) 65 percent shall be used to carry out section 
     5116(b),
     except that the Secretary may increase the proportion to 
     carry out section 5116(b) and decrease the proportion to 
     carry out section 5116(a) if the Secretary determines that 
     such reallocation is appropriate to carry out the intended 
     uses of these funds as described in the applications 
     submitted by States and Indian tribes.
       ``(3) To carry out section 5116(f), $150,000.
       ``(4) To publish and distribute the Emergency Response 
     Guidebook under section 5116(i)(3), $625,000.
       ``(5) To carry out section 5116(j), $1,000,000.
       ``(c) Hazmat Training Grants.--There shall be available to 
     the Secretary, from the account established pursuant to 
     section 5116(i), to carry out section 5107(e) $4,000,000 for 
     each of fiscal years 2005 through 2008.
       ``(d) Issuance of Hazmat Licenses.--There are authorized to 
     be appropriated for the Department of Transportation such 
     amounts as may be necessary to carry out section 5103a.
       ``(e) Credits to Appropriations.--The Secretary may credit 
     to any appropriation to carry out this chapter an amount 
     received from a State, Indian tribe, or other public 
     authority or private entity for expenses the Secretary incurs 
     in providing training to the State, authority, or entity.
       ``(f) Availability of Amounts.--Amounts made available by 
     or under this section remain available until expended.''.

     SEC. 7126. REFERENCES TO THE SECRETARY OF TRANSPORTATION.

       Chapter 51 is amended by striking ``Secretary of 
     Transportation'' each place it appears (other than the second 
     place it appears in section 5108(g)(2)(C) and in sections 
     5102(11), 5103(c), 5103a(c), 5115(a), 5115(c)(3), 5116(i), 
     and 5120(a)) and inserting ``Secretary''.

     SEC. 7127. CRIMINAL MATTERS.

       Section 845(a)(1) of title 18, United States Code, is 
     amended to read as follows:
       ``(1) aspects of the transportation of explosive materials 
     via railroad, water, highway, or air that pertain to safety, 
     including security, and are regulated by the Department of 
     Transportation or the Department of Homeland Security;''.

     SEC. 7128. ADDITIONAL CIVIL AND CRIMINAL PENALTIES.

       (a) Title 49 Penalties.--Section 46312 is amended--
       (1) by striking ``part--'' in subsection (a) and inserting 
     ``part or chapter 51--''; and
       (2) by inserting ``or chapter 51'' in subsection (b) after 
     ``under this part''.
       (b) Title 18 Penalties.--Section 3663(a)(1)(A) of title 18, 
     United States Code, is amended by inserting ``5124,'' before 
     ``46312,''.

     SEC. 7129. HAZARDOUS MATERIAL TRANSPORTATION PLAN 
                   REQUIREMENT.

       (a) In General.--Subpart I of part 172 of the Department of 
     Transportation's regulations (49 C.F.R. 172.800 et seq.), or 
     any subsequent Department of Transportation regulation in 
     pari materia, does not apply to the surface transportation 
     activities of a farmer that are--
       (1) in direct support of the farmer's farming operations; 
     and
       (2) conducted within a 150-mile radius of those operations.
       (b) Farmer Defined.--In this section, the term ``farmer'' 
     means a person--
       (1) actively engaged in the production or raising of crops, 
     poultry, livestock, or other agricultural commodities; and
       (2) whose gross receipts from the sale of such agricultural 
     commodities or products do not exceed $500,000 annually.

     SEC. 7130. DETERMINING AMOUNT OF UNDECLARED SHIPMENTS OF 
                   HAZARDOUS MATERIALS ENTERING THE UNITED STATES.

       (a) Study.--The Comptroller General shall review existing 
     options and determine additional options for discovering the 
     amount of undeclared shipments of hazardous materials (as 
     defined in section 5101 of title 49, United States Code) 
     entering the United States.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     to the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate a report on the 
     results of the study.

     SEC. 7131. HAZARDOUS MATERIALS RESEARCH PROJECTS.

       (a) In General.--The Administrator of the Pipeline and 
     Hazardous Materials Safety Administration shall enter into a 
     contract with the National Academy of Sciences to carry out 
     the 9 research projects called for in the 2005 Special Report 
     283 of the Transportation Research Board entitled 
     ``Cooperative Research for Hazardous Materials 
     Transportation: Defining the Need, Converging on Solutions''. 
     In carrying out the research projects, the National Academy 
     of Sciences shall consult with the Administrator.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science, 
     and Transportation of the Senate a report on the need to 
     establish a cooperative research program on hazardous 
     materials transportation.
       (c) Funding.--Of the amounts made available by section 
     5101(a)(1) of this Act, $1,250,000 for each of fiscal years 
     2006 through 2009 shall be available to carry out this 
     section.

     SEC. 7132. NATIONAL FIRST RESPONDER TRANSPORTATION INCIDENT 
                   RESPONSE SYSTEM.

       (a) In General.--The Secretary shall provide funding to the 
     Operation Respond Institute to design, build, and operate a 
     seamless first responder hazardous materials incident 
     detection, preparedness, and response system.
       (b) Expansion.--This system shall include an expansion of 
     the Operation Respond Emergency Information System (OREIS).
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $2,500,000 for each of fiscal years 2005 through 2008.

     SEC. 7133. COMMON CARRIER PIPELINE SYSTEM.

       (a) Study.--The Secretary shall conduct a study of the 
     economic, environmental, and homeland security advantages and 
     disadvantages of operating a common carrier pipeline system 
     in the States of Texas, Louisiana, Mississippi, and Alabama 
     for the transportation of aromatic chemicals.
       (b) Evaluation.--In conducting the study, the Secretary 
     shall evaluate the appropriateness of different Federal 
     incentives for the construction and operation of such a 
     pipeline system, including loan guarantees, other types of 
     financial assistance, and various types of tax incentives.
       (c) Report.--Not later than December 31, 2005, the 
     Secretary shall transmit to Congress a report on the results 
     of the study, including recommendations, if any, for 
     legislation.
                Subtitle B--Sanitary Food Transportation

     SEC. 7201. SHORT TITLE.

       This subtitle may be cited as the ``Sanitary Food 
     Transportation Act of 2005''.

     SEC. 7202. RESPONSIBILITIES OF SECRETARY OF HEALTH AND HUMAN 
                   SERVICES.

       (a) Unsanitary Transport Deemed Adulteration.--Section 402 
     of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342) 
     is amended by adding at the end the following:
       ``(i) If it is transported or offered for transport by a 
     shipper, carrier by motor vehicle or rail vehicle, receiver, 
     or any other person engaged in the transportation of food 
     under conditions that are not in compliance with regulations 
     promulgated under section 416.''.
       (b) Sanitary Transportation Requirements.--Chapter IV of 
     the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 416. SANITARY TRANSPORTATION PRACTICES.

       ``(a) Definitions.--In this section:
       ``(1) Bulk vehicle.--The term `bulk vehicle' includes a 
     tank truck, hopper truck, rail tank car, hopper car, cargo 
     tank, portable tank, freight container, or hopper bin, and 
     any other vehicle in which food is shipped in bulk, with the 
     food coming into direct contact with the vehicle.
       ``(2) Transportation.--The term `transportation' means any 
     movement in commerce by motor vehicle or rail vehicle.
       ``(b) Regulations.--The Secretary shall by regulation 
     require shippers, carriers by motor vehicle or rail vehicle, 
     receivers, and other persons engaged in the transportation of 
     food to use sanitary transportation practices prescribed by 
     the Secretary to ensure that food is not transported under 
     conditions that may render the food adulterated.
       ``(c) Contents.--The regulations under subsection (b) 
     shall--
       ``(1) prescribe such practices as the Secretary determines 
     to be appropriate relating to--
       ``(A) sanitation;
       ``(B) packaging, isolation, and other protective measures;
       ``(C) limitations on the use of vehicles;
       ``(D) information to be disclosed--
       ``(i) to a carrier by a person arranging for the transport 
     of food; and
       ``(ii) to a manufacturer or other person that--

       ``(I) arranges for the transportation of food by a carrier; 
     or
       ``(II) furnishes a tank vehicle or bulk vehicle for the 
     transportation of food; and

       ``(E) recordkeeping; and
       ``(2) include--
       ``(A) a list of nonfood products that the Secretary 
     determines may, if shipped in a bulk vehicle, render 
     adulterated food that is subsequently transported in the same 
     vehicle; and
       ``(B) a list of nonfood products that the Secretary 
     determines may, if shipped in a motor vehicle or rail vehicle 
     (other than a tank vehicle

[[Page H7431]]

     or bulk vehicle), render adulterated food that is 
     simultaneously or subsequently transported in the same 
     vehicle.
       ``(d) Waivers.--
       ``(1) In general.--The Secretary may waive any requirement 
     under this section, with respect to any class of persons, 
     vehicles, food, or nonfood products, if the Secretary 
     determines that the waiver--
       ``(A) will not result in the transportation of food under 
     conditions that would be unsafe for human or animal health; 
     and
       ``(B) will not be contrary to the public interest.
       ``(2) Publication.--The Secretary shall publish in the 
     Federal Register any waiver and the reasons for the waiver.
       ``(e) Preemption.--
       ``(1) In general.--A requirement of a State or political 
     subdivision of a State that concerns the transportation of 
     food is preempted if--
       ``(A) complying with a requirement of the State or 
     political subdivision and a requirement of this section, or a 
     regulation prescribed under this section, is not possible; or
       ``(B) the requirement of the State or political subdivision 
     as applied or enforced is an obstacle to accomplishing and 
     carrying out this section or a regulation prescribed under 
     this section.
       ``(2) Applicability.--This subsection applies to 
     transportation that occurs on or after the effective date of 
     the regulations promulgated under subsection (b).
       ``(f) Assistance of Other Agencies.--The Secretary of 
     Transportation, the Secretary of Agriculture, the 
     Administrator of the Environmental Protection Agency, and the 
     heads of other Federal agencies, as appropriate, shall 
     provide assistance on request, to the extent resources are 
     available, to the Secretary for the purposes of carrying out 
     this section.''.
       (c) Inspection of Transportation Records.--
       (1) Requirement.--Section 703 of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 373) is amended--
       (A) by striking the section heading and all that follows 
     through ``For the purpose'' and inserting the following:

     ``SEC. 703. RECORDS.

       ``(a) In General.--For the purpose''; and
       (B) by adding at the end the following:
       ``(b) Food Transportation Records.--A shipper, carrier by 
     motor vehicle or rail vehicle, receiver, or other person 
     subject to section 416 shall, on request of an officer or 
     employee designated by the Secretary, permit the officer 
     or employee, at reasonable times, to have access to and to 
     copy all records that the Secretary requires to be kept 
     under section 416(c)(1)(E).''.
       (2) Conforming amendment.--Subsection (a) of section 703 of 
     the Federal Food, Drug, and Cosmetic Act (as designated by 
     paragraph (1)(A)) is amended by striking ``carriers.'' and 
     inserting ``carriers, except as provided in subsection 
     (b).''.
       (d) Prohibited Acts; Records Inspection.--Section 301(e) of 
     the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 331(e)) 
     is amended by inserting ``416,'' before ``504,'' each place 
     it appears.
       (e) Unsafe Food Transportation.--Section 301 of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amended by 
     adding at the end the following:
       ``(hh) The failure by a shipper, carrier by motor vehicle 
     or rail vehicle, receiver, or any other person engaged in the 
     transportation of food to comply with the sanitary 
     transportation practices prescribed by the Secretary under 
     section 416.''.

     SEC. 7203. DEPARTMENT OF TRANSPORTATION REQUIREMENTS.

       Chapter 57 is amended to read as follows:

               ``CHAPTER 57--SANITARY FOOD TRANSPORTATION

``5701. Food Transportation safety inspections.

     ``Sec. 5701. Food transportation safety inspections

       ``(a) Inspection Procedures.--
       ``(1) In general.--The Secretary of Transportation, in 
     consultation with the Secretary of Health and Human Services 
     and the Secretary of Agriculture, shall establish procedures 
     for transportation safety inspections for the purpose of 
     identifying suspected incidents of contamination or 
     adulteration of--
       ``(A) food in violation of regulations promulgated under 
     section 416 of the Federal Food, Drug, and Cosmetic Act;
       ``(B) a carcass, part of a carcass, meat, meat food 
     product, or animal subject to detention under section 402 of 
     the Federal Meat Inspection Act (21 U.S.C. 672); and
       ``(C) poultry products or poultry subject to detention 
     under section 19 of the Poultry Products Inspection Act (21 
     U.S.C. 467a).
       ``(2) Training.--
       ``(A) In general.--The Secretary of Transportation shall 
     develop and carry out a training program to conduct 
     enforcement of this chapter and regulations prescribed under 
     this chapter or compatible State laws and regulations.
       ``(B) Conduct.--In carrying out this paragraph, the 
     Secretary of Transportation shall train inspectors, including 
     Department of Transportation personnel, State employees 
     described under subsection (c), or personnel paid with funds 
     authorized under sections 31102 and 31104, in the recognition 
     of adulteration problems associated with the transportation 
     of cosmetics, devices, drugs, food, and food additives and in 
     the procedures for obtaining assistance of the appropriate 
     departments, agencies, and instrumentalities of the 
     Government and State authorities to support the enforcement.
       ``(3) Applicability.--The procedures established under 
     paragraph (1) shall apply, at a minimum, to Department of 
     Transportation personnel that perform commercial motor 
     vehicle or railroad safety inspections.
       ``(b) Notification of Secretary of Health and Human 
     Services or Secretary of Agriculture.--The Secretary of 
     Transportation shall promptly notify the Secretary of Health 
     and Human Services or the Secretary of Agriculture, as 
     applicable, of any instances of potential food contamination 
     or adulteration of a food identified during transportation 
     safety inspections.
       ``(c) Use of State Employees.--The means by which the 
     Secretary of Transportation carries out subsection (b) may 
     include inspections conducted by State employees using funds 
     authorized to be appropriated under sections 31102 through 
     31104.''.

     SEC. 7204. EFFECTIVE DATE.

       This subtitle takes effect on October 1, 2005.
     Subtitle C--Research and Innovative Technology Administration

     SEC. 7301. ADMINISTRATIVE AUTHORITY.

       Section 112 is amended by adding at the end the following:
       ``(e) Administrative Authorities.--The Administrator may 
     enter into grants and cooperative agreements with Federal 
     agencies, State and local government agencies, other public 
     entities, private organizations, and other persons--
       ``(1) to conduct research into transportation service and 
     infrastructure assurance; and
       ``(2) to carry out other research activities of the 
     Administration.''.
      TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE

     SEC. 8001. DISCRETIONARY SPENDING LIMITS FOR THE HIGHWAY AND 
                   MASS TRANSIT CATEGORIES.

       (a) Limits.--Redesignate paragraphs (2) through (9) of 
     section 251(c) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 as paragraphs (6) through (13), 
     respectively, and strike paragraph (1) of such section 251(c) 
     and insert the following new paragraphs:
       ``(1) with respect to fiscal year 2005--
       ``(A) for the highway category: $31,277,000,000 in outlays;
       ``(B) for the mass transit category: $955,792,000 in new 
     budget authority and $6,674,000,000 in outlays;
       ``(2) with respect to fiscal year 2006--
       ``(A) for the highway category: $33,942,000,000 in outlays;
       ``(B) for the mass transit category: $1,643,000,000 in new 
     budget authority and $7,359,000,000 in outlays;
       ``(3) with respect to fiscal year 2007--
       ``(A) for the highway category: $36,960,000,000 in outlays;
       ``(B) for the mass transit category: $1,712,000,000 in new 
     budget authority and $8,120,000,000 in outlays;
       ``(4) with respect to fiscal year 2008--
       ``(A) for the highway category: $39,123,000,000 in outlays;
       ``(B) for the mass transit category: $1,858,000,000 in new 
     budget authority and $8,742,000,000 in outlays;
       ``(5) with respect to fiscal year 2009--
       ``(A) for the highway category: $40,660,000,000 in outlays;
       ``(B) for the mass transit category: $1,977,500,000 in new 
     budget authority and $9,180,000,000 in outlays;''.
       (b) Definitions.--Section 250(c)(4) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 is amended--
       (1) in subparagraph (B)--
       (A) by striking ``the Transportation Equity Act for the 
     21st Century'' and all that follows through the colon and 
     inserting: ``the Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users:''; and
       (B) by adding at the end thereof the following new clauses:
       ``(v) 69-8362-0-7-401 (National Driver Registry).
       ``(vi) 69-8159-0-7-401 (Motor Carrier Safety Operations and 
     Programs).
       ``(vii) 06-8158-0-7-401 (Motor Carrier Safety Grants).''; 
     and
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Mass transit category.--The term `mass transit 
     category' means the following budget accounts, or portions of 
     the accounts, that are subject to the obligation limitations 
     on contract authority provided in the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users or for which appropriations are provided in accordance 
     with authorizations contained in that Act:
       ``(i) 69-1120-0-1-401 (Administrative Expenses).
       ``(ii) 69-1134-0-1-401 (Capital Investment Grants).
       ``(iii) 69-8191-0-7-401 (Discretionary Grants).
       ``(iv) 69-1129-0-1-401 (Formula Grants).
       ``(v) 69-1127-0-1-401 (Interstate Transfer Grants--
     Transit).
       ``(vi) 69-1125-0-1-401 (Job Access and Reverse Commute).
       ``(vii) 69-1122-0-1-401 (Miscellaneous Expired Accounts).
       ``(viii) 69-1121-0-1-401 (Research, Training and Human 
     Resources).
       ``(ix) 69-8350-0-7-401 (Trust Fund Share of Expenses).
       ``(x) 69-1137-0-1-401 (Transit Planning and Research).
       ``(xi) 69-1136-0-1-401 (University Transportation 
     Research).
       ``(xii) 69-1128-0-1-401 (Washington Metropolitan Area 
     Transit Authority).''.

     SEC. 8002. ADJUSTMENTS TO ALIGN HIGHWAY SPENDING WITH 
                   REVENUES.

       Subparagraphs (B) through (E) of section 251(b)(1) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 are 
     amended to read as follows:
       ``(B) Adjustment to align highway spending with revenues.--
     (i) When the President

[[Page H7432]]

     submits the budget under section 1105 of title 31, United 
     States Code, OMB shall calculate and the budget shall make 
     adjustments to the highway category for the budget year and 
     each outyear as provided in clause (ii)(I)(cc).
       ``(ii)(I)(aa) OMB shall take the actual level of highway 
     receipts for the year before the current year and subtract 
     the sum of the estimated level of highway receipts in 
     subclause (II) plus any amount previously calculated under 
     item (bb) for that year.
       ``(bb) OMB shall take the current estimate of highway 
     receipts for the current year and subtract the estimated 
     level of receipts for that year.
       ``(cc) OMB shall add one-half of the sum of the amount 
     calculated under items (aa) and (bb) to the obligation 
     limitations set forth in the section 8003 of the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users and, using current estimates, calculate the 
     outlay change resulting from the change in obligations for 
     the budget year and the first outyear and the outlays flowing 
     therefrom through subsequent fiscal years. After making the 
     calculations under the preceding sentence, OMB shall adjust 
     the amount of obligations set forth in that section for the 
     budget year and the first outyear by adding one-half of the 
     sum of the amount calculated under items (aa) and (bb) to 
     each such year.
       ``(II) The estimated level of highway receipts for the 
     purposes of this clause are--
       ``(aa) for fiscal year 2005, $31,562,000,000;
       ``(bb) for fiscal year 2006, $33,712,000,000;
       ``(cc) for fiscal year 2007, $34,623,000,000
       ``(dd) for fiscal year 2008, $35,449,000,000; and
       ``(ee) for fiscal year 2009, $36,220,000,000.
       ``(III) In this clause, the term `highway receipts' means 
     the governmental receipts credited to the highway account of 
     the Highway Trust Fund.
       ``(C) In addition to the adjustment required by 
     subparagraph (B), when the President submits the budget under 
     section 1105 of title 31, United States Code, for fiscal year 
     2007, 2008, or 2009, OMB shall calculate and the budget shall 
     include for the budget year and each outyear an adjustment to 
     the limits on outlays for the highway category and the mass 
     transit category equal to--
       ``(i) the outlays for the applicable category calculated 
     assuming obligation levels consistent with the estimates 
     prepared pursuant to subparagraph (D), as adjusted, using 
     current technical assumptions; minus
       ``(ii) the outlays for the applicable category set forth in 
     the subparagraph (D) estimates, as adjusted.
       ``(D)(i) When OMB and CBO submit their final sequester 
     report for fiscal year 2006, that report shall include an 
     estimate of the outlays for each of the categories that would 
     result in fiscal years 2007 through 2010 from obligations at 
     the levels specified in section 8003 of the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users using current assumptions.
       ``(ii) When the President submits the budget under section 
     1105 of title 31, United States Code, for fiscal year 2007, 
     2008, 2009, or 2010, OMB shall adjust the estimates made in 
     clause (i) by the adjustments by subparagraphs (B) and (C).
       ``(E) OMB shall consult with the Committees on the Budget 
     and include a report on adjustments under subparagraphs (B) 
     and (C) in the preview report.''.

     SEC. 8003. LEVEL OF OBLIGATION LIMITATIONS.

       (a) Highway Category.--For the purposes of section 251(b) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, the level of obligation limitations for the highway 
     category is--
       (1) for fiscal year 2005, $35,164,292,000;
       (2) for fiscal year 2006, $37,220,843,903;
       (3) for fiscal year 2007, $39,460,710,516;
       (4) for fiscal year 2008, $40,824,075,404; and
       (5) for fiscal year 2009, $42,469,970,178.
       (b) Mass Transit Category.--For the purposes of section 
     251(b) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985, the level of obligation limitations for the mass 
     transit category is--
       (1) for fiscal year 2005, $7,646,336,000;
       (2) for fiscal year 2006, $8,622,931,000;
       (3) for fiscal year 2007, $8,974,775,000;
       (4) for fiscal year 2008, $9,730,893,000; and
       (5) for fiscal year 2009, $10,338,065,000.
     For purposes of this subsection, the term ``obligation 
     limitations'' means the sum of budget authority and 
     obligation limitations.

     SEC. 8004. ENFORCEMENT OF GUARANTEE.

       Clause 3 of rule XXI of the Rules of the House of 
     Representatives is amended--
       (1) by striking ``section 8103 of the Transportation Equity 
     Act for the 21st Century'' and inserting ``section 8003 of 
     the Safe, Accountable, Flexible, Efficient Transportation 
     Equity Act: A Legacy for Users''; and
       (2) by adding at the end the following: ``For purposes of 
     this clause, any obligation limitation relating to surface 
     transportation projects under section 1602 of the 
     Transportation Equity Act for the 21st Century and section 
     1702 of the Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users shall be 
     assumed to be administered on the basis of sound program 
     management practices that are consistent with past practices 
     of the administering agency permitting States to decide High 
     Priority Project funding priorities within State program 
     allocations.''.

     SEC. 8005. TRANSFER OF FEDERAL TRANSIT ADMINISTRATIVE 
                   EXPENSES.

       For purposes of clauses 2 and 3 of rule XXI of the House of 
     Representatives, it shall be in order to transfer funds, in 
     amounts specified in annual appropriation Acts to carry out 
     the Safe, Accountable, Flexible, Efficient Transportation 
     Equity Act: A Legacy for Users (including the amendments made 
     by that Act), from the Federal Transit Administration's 
     administrative expenses account to other mass transit budget 
     accounts under section 250(c)(4)(C) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
                     TITLE IX--RAIL TRANSPORTATION

     SEC. 9001. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT.

       (a) Corridor Development.--
       (1) Amendments.--Section 26101 of title 49, United States 
     Code, is amended--
       (A) in the section heading, by striking ``planning'' and 
     inserting ``development'';
       (B) in the heading of subsection (a), by striking 
     ``Planning'' and inserting ``Development'';
       (C) by striking ``corridor planning'' each place it appears 
     and inserting ``corridor development'';
       (D) in subsection (b)(1)--
       (i) by inserting ``, or if it is an activity described in 
     subparagraph (M)'' after ``high-speed rail improvements'';
       (ii) by striking ``and'' at the end of subparagraph (K);
       (iii) by striking the period at the end of subparagraph (L) 
     and inserting ``; and''; and
       (iv) by adding at the end the following new subparagraph:
       ``(M) the acquisition of locomotives, rolling stock, track, 
     and signal equipment.''; and
       (E) in subsection (c)(2), by striking ``planning'' and 
     inserting ``development''.
       (2) Conforming amendment.--The item relating to section 
     26101 in the table of sections of chapter 261 of title 49, 
     United States Code, is amended by striking ``planning'' and 
     inserting ``development''.
       (b) Authorization of Appropriations.--Section 26104 of 
     title 49, United States Code, is amended to read as follows:

     ``Sec. 26104. Authorization of appropriations

       ``(a) Fiscal Years 2006 Through 2013.--There are authorized 
     to be appropriated to the Secretary--
       ``(1) $70,000,000 for carrying out section 26101; and
       ``(2) $30,000,000 for carrying out section 26102,
     for each of the fiscal years 2006 through 2013.
       ``(b) Funds to Remain Available.--Funds made available 
     under this section shall remain available until expended.''.
       (c) Definition.--Section 26105(1) of title 49, United 
     States Code, is amended by striking ``and cooperative 
     agreements'' and inserting ``, cooperative agreements, and 
     other transactions''.

     SEC. 9002. 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 and 
     improvement projects.
       ``(b) Eligibility.--A State is eligible for a grant under 
     this section for any construction project for the improvement 
     of the route or structure of a rail line that either--
       ``(1) is carried out for the purpose of mitigating the 
     adverse effects of rail traffic on safety, motor vehicle 
     traffic flow, community quality of life, or economic 
     development; or
       ``(2) involves a lateral or vertical relocation of any 
     portion of the rail line.
       ``(c) Considerations for Approval of Grant Applications.--
     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 (d).
       ``(3) Equitable treatment of the various regions of the 
     United States.
       ``(4) The effects of the rail line, relocated or improved 
     as proposed, on motor vehicle and pedestrian traffic, safety, 
     community quality of life, and area commerce.
       ``(5) The effects of the rail line, relocated as proposed, 
     on the freight and passenger rail operations on the rail 
     line.
       ``(d) Allocation Requirements.--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. The $20,000,000 
     amount shall be adjusted by the Secretary to reflect 
     inflation for fiscal years beginning after fiscal year 2006.
       ``(e) Non-Federal Share.--
       ``(1) Percentage.--A State or other non-Federal entity 
     shall pay at least 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 or other non-Federal entity 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 or other non-Federal entity, calculated on the basis of 
     costs incurred by the State or other non-Federal entity 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

[[Page H7433]]

     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) Financial contribution from private entities.--
       ``(A) The Secretary shall require a State to submit a 
     description of the anticipated public and private benefits 
     associated with each rail line relocation or improvement 
     project described in subsection (a). The determination of 
     such benefits shall be developed in consultation with the 
     owner and user of the rail line being relocated or improved 
     or other private entity involved in the project.
       ``(B) The Secretary shall consider the feasibility of 
     seeking financial contributions or commitments from private 
     entities involved with the project in proportion to the 
     expected benefits determined under subparagraph (A) that 
     accrue to such entities from the project.
       ``(f) 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.
       ``(g) Regulations.--The Secretary shall prescribe 
     regulations for carrying out this section.
       ``(h) Definitions.--In this section:
       ``(1) Construction.--The term `construction' means the 
     supervising, inspecting, actual building, and incurrence of 
     all costs incidental to the construction or reconstruction of 
     a project described under subsection (b)(1) of this section, 
     including bond costs and other costs relating to the issuance 
     of bonds or other debt financing instruments and costs 
     incurred by the State in performing project related audits, 
     and includes--
       ``(A) locating, surveying, and mapping;
       ``(B) track installation, restoration, and rehabilitation;
       ``(C) acquisition of rights-of-way;
       ``(D) relocation assistance, acquisition of replacement 
     housing sites, and acquisition and rehabilitation, 
     relocation, and construction of replacement housing;
       ``(E) elimination of obstacles and relocation of utilities; 
     and
       ``(F) and other activities defined by the Secretary.
       ``(2) Quality of life.--The term `quality of life' includes 
     first responders' emergency response time, the environment, 
     noise levels, and other factors as determined by the 
     Secretary.
       ``(3) State.--The term `State' includes, except as 
     otherwise specifically provided, a political subdivision of a 
     State, and the District of Columbia.
       ``(i) 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 2006 through 2009.''.
       (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) Temporary regulations.--Not later than April 1, 2006, 
     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 October 1, 2006, the 
     Secretary shall issue final regulations implementing the 
     program.

     SEC. 9003. REHABILITATION AND IMPROVEMENT FINANCING.

       (a) Definitions.--Section 102(7) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     802(7)) is amended to read as follows:
       ``(7) `railroad' has the meaning given that term in section 
     20102 of title 49, United States Code; and''.
       (b) General Authority.--Section 502(a) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(a)) is amended to read as follows:
       ``(a) General Authority.--The Secretary shall provide 
     direct loans and loan guarantees to--
       ``(1) State and local governments;
       ``(2) interstate compacts consented to by Congress under 
     section 410(a) of the Amtrak Reform and Accountability Act of 
     1997 (49 U.S.C. 24101 nt);
       ``(3) government sponsored authorities and corporations;
       ``(4) railroads;
       ``(5) joint ventures that include at least 1 railroad; and
       ``(6) solely for the purpose of constructing a rail 
     connection between a plant or facility and a second rail 
     carrier, limited option rail freight shippers that own or 
     operate a plant or other facility that is served by no more 
     than a single railroad.''.
       (c) Priority Projects.--Section 502(c) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(c)) is amended--
       (1) by striking ``or'' after the semicolon in paragraph 
     (5);
       (2) by striking ``areas.'' in paragraph (6) and inserting 
     ``areas;''; and
       (3) by adding at the end the following:
       ``(7) enhance service and capacity in the national rail 
     system; or
       ``(8) would materially alleviate rail capacity problems 
     which degrade the provision of service to shippers and would 
     fulfill a need in the national transportation system.''.
       (d) Extent of Authority.--Section 502(d) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(d)) is amended--
       (1) by striking ``$3,500,000,000'' and inserting 
     ``$35,000,000,000'';
       (2) by striking ``$1,000,000,000'' and inserting 
     ``$7,000,000,000''; and
       (3) by adding at the end ``The Secretary shall not 
     establish any limit on the proportion of the unused amount 
     authorized under this subsection that may be used for 1 loan 
     or loan guarantee.''.
       (e) Cohorts of Loans.--Section 502(f) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(f)) is amended--
       (1) by striking ``and'' after the semicolon in subparagraph 
     (D) of paragraph (2);
       (2) by redesignating subparagraph (E) of paragraph (2) as 
     subparagraph (F);
       (3) by adding after subparagraph (D) of paragraph (2) the 
     following:
       ``(E) the size and characteristics of the cohort of which 
     the loan or loan guarantee is a member; and''; and
       (4) by adding at the end of paragraph (4) ``A cohort may 
     include loans and loan guarantees. The Secretary shall not 
     establish any limit on the proportion of a cohort that may be 
     used for 1 loan or loan guarantee.''.
       (f) Conditions of Assistance.--
       (1) Assurances.--Section 502(h) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(h)) is amended--
       (A) by inserting ``(1)'' before ``The Secretary'';
       (B) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C); and
       (C) by adding at the end the following:
       ``(2) The Secretary shall not require an applicant for a 
     direct loan or loan guarantee under this section to provide 
     collateral. Any collateral provided or thereafter enhanced 
     shall be valued as a going concern after giving effect to the 
     present value of improvements contemplated by the completion 
     and operation of the project. The Secretary shall not require 
     that an applicant for a direct loan or loan guarantee under 
     this section have previously sought the financial assistance 
     requested from another source.
       ``(3) The Secretary shall require recipients of direct 
     loans or loan guarantees under this section to comply with--
       ``(A) the standards of section 24312 of title 49, United 
     States Code, as in effect on September 1, 2002, with respect 
     to the project in the same manner that the National Railroad 
     Passenger Corporation is required to comply with such 
     standards for construction work financed under an agreement 
     made under section 24308(a) of that title; and
       ``(B) the protective arrangements established under section 
     504 of this Act, with respect to employees affected by 
     actions taken in connection with the project to be financed 
     by the loan or loan guarantee.''.
       (2) Technical correction.--Section 502 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822) is amended by striking ``offered;'' in subsection 
     (f)(2)(A) and inserting ``offered, if any;''.
       (g) Time Limit and Repayment Schedules.--Section 502 of the 
     Railroad Revitalization and Regulatory Reform Act of 1976 (45 
     U.S.C. 822) is amended by adding at the end the following:
       ``(i) Time Limit for Approval or Disapproval.--Not later 
     than 90 days after receiving a complete application for a 
     direct loan or loan guarantee under this section, the 
     Secretary shall approve or disapprove the application.
       ``(j) Repayment Schedules.--
       ``(1) In general.--The Secretary shall establish a 
     repayment schedule requiring payments to commence not later 
     than the sixth anniversary date of the original loan 
     disbursement.
       ``(2) Accrual.--Interest shall accrue as of the date of 
     disbursement, and shall be amortized over the remaining term 
     of the loan beginning at the time the payments begin.''.
       (h) Evaluation Charge.--Section 503(k) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     823(k)) is amended--
       (1) in the subsection heading, by striking 
     ``Investigation'' and inserting ``Evaluation'';
       (2) by inserting ``the cost of evaluating the application, 
     including'' after ``reasonable charge for''; and
       (3) by adding at the end the following: ``Amounts collected 
     under this subsection shall be credited directly to the 
     Safety and Operations account of the Federal Railroad 
     Administration, and shall remain available until expended to 
     pay for the evaluation costs described in this subsection.''.
       (i) Fees and Charges.--Section 503 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     823) is amended by adding at the end the following new 
     subsection:
       ``(l) Fees and Charges.--Except as provided in this title, 
     the Secretary may not assess any fees, including user fees, 
     or charges in connection with a direct loan or loan guarantee 
     provided under section 502.''.
       (j) Substantive Criteria and Standards.--Not later than 30 
     days after the date of the enactment of this Act, the 
     Secretary of Transportation shall publish in the Federal 
     Register and post on the Department of Transportation website 
     the substantive criteria and standards used by the Secretary 
     to determine whether to approve or disapprove applications 
     submitted under section 502 of the Railroad Revitalization 
     and Regulatory Reform Act of 1976 (45 U.S.C. 822). The 
     Secretary of Transportation shall ensure adequate procedures 
     and guidelines are in place to permit the filing of complete 
     applications within 30 days of such publication.

[[Page H7434]]

     SEC. 9004. REPORT REGARDING IMPACT ON PUBLIC SAFETY OF TRAIN 
                   TRAVEL IN COMMUNITIES WITHOUT GRADE SEPARATION.

       (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.

     SEC. 9005. WELDED RAIL AND TANK CAR SAFETY IMPROVEMENTS.

       (a) Track Standards.--Section 20142 of title 49, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(e) Track Standards.--
       ``(1) In general.--Within 90 days after the date of 
     enactment of this subsection, the Federal Railroad 
     Administration shall--
       ``(A) require each track owner using continuous welded rail 
     track to include procedures (in its procedures filed with the 
     Administration pursuant to section 213.119 of title 49, Code 
     of Federal Regulations) to improve the identification of 
     cracks in rail joint bars;
       ``(B) instruct Administration track inspectors to obtain 
     copies of the most recent continuous welded rail programs of 
     each railroad within the inspectors' areas of responsibility 
     and require that inspectors use those programs when 
     conducting track inspections; and
       ``(C) establish a program to review continuous welded rail 
     joint bar inspection data from railroads and Administration 
     track inspectors periodically.
       ``(2) Inspection.--Whenever the Administration determines 
     that it is necessary or appropriate, the Administration may 
     require railroads to increase the frequency of inspection, or 
     improve the methods of inspection, of joint bars in 
     continuous welded rail.''.
       (b) Tank Car Standards.--
       (1) Amendment.--Subchapter II of chapter 201 of title 49, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 20155. Tank cars

       ``(a) Standards.--The Federal Railroad Administration 
     shall--
       ``(1) validate a predictive model to quantify the relevant 
     dynamic forces acting on railroad tank cars under accident 
     conditions within 1 year after the date of enactment of this 
     section; and
       ``(2) initiate a rulemaking to develop and implement 
     appropriate design standards for pressurized tank cars within 
     18 months after the date of enactment of this section.
       ``(b) Older Tank Car Impact Resistance Analysis and 
     Report.--Within 1 year after the date of enactment of this 
     section the Federal Railroad Administration shall conduct a 
     comprehensive analysis to determine the impact resistance of 
     the steels in the shells of pressure tank cars constructed 
     before 1989. Within 6 months after completing that analysis 
     the Administration shall transmit a report, including 
     recommendations for reducing any risk of catastrophic 
     fracture and separation of such cars, to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives. ''.
       (2) Table of sections amendment.--The table of sections for 
     subchapter II of chapter 201 of title 49, United States Code, 
     is amended by adding at the end the following new item:

``20155. Tank cars.''.

     SEC. 9006. ALASKA RAILROAD.

       (a) Grants.--The Secretary shall make grants to the Alaska 
     Railroad for capital rehabilitation and improvements 
     benefiting its passenger operations.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary.

     SEC. 9007. STUDY OF RAIL TRANSPORTATION AND REGULATION.

       (a) Requirement.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     enter into an arrangement with the Transportation Research 
     Board of the National Academy of Sciences to conduct a 
     comprehensive study of the Nation's railroad transportation 
     system since the enactment of the Staggers Rail Act of 1980. 
     The study shall address and make recommendations on--
       (1) the performance of the Nation's major railroads 
     regarding service levels, service quality, and rates;
       (2) the projected demand for freight transportation over 
     the next two decades and the constraints limiting the 
     railroads' ability to meet that demand;
       (3) the effectiveness of public policy in balancing the 
     need for railroads to earn adequate returns with those of 
     shippers for reasonable rates and adequate service; and
       (4) the future role of the Surface Transportation Board in 
     regulating railroad rates, service levels, and the railroads' 
     common carrier obligations, particularly as railroads may 
     become revenue adequate.
       (b) Report to Congress.--Not later than 1 year after the 
     Secretary and the Transportation Research Board enter into 
     the arrangement for the study, the Secretary shall transmit 
     the results of the study conducted under subsection (a) to 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $1,000,000 for fiscal year 2006 and $800,000 for fiscal year 
     2007 to carry out this section. Such sums are to remain 
     available until expended.

     SEC. 9008. HAWAII PORT INFRASTRUCTURE EXPANSION PROGRAM.

       (a) In General.--Amounts appropriated or otherwise made 
     available for any fiscal year for an intermodal or marine 
     facility comprising a component of the Hawaii Port 
     Infrastructure Expansion Program, and any non-Federal 
     contributions made available for that program, shall be--
       (1) transferred to and administered by the Administrator of 
     the Maritime Administration; and
       (2) subject only to such conditions and requirements as may 
     be required by the Maritime Administration.
       (b) Intermodal Authorizations.--
       (1) Intermodal centers.--Notwithstanding any other 
     provision of law, an intermodal or marine facility described 
     in subsection (a) is eligible for funding under section 
     5309(m)(1)(C) of title 49, United States Code.
       (2) Intermodal surface freight transfer facility 
     eligibility.--Notwithstanding any other provision of law, an 
     intermodal or marine facility described in subsection (a) is 
     deemed to be eligible to be an intermodal surface freight 
     transfer facility for the purposes of section 181(9)(D) of 
     title 23, United States Code.
       (c) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Transportation such sums as may be necessary 
     to carry out this section.
       (2) No limitation.--Nothing in paragraph (1) shall be 
     construed--
       (A) to limit or prevent the transfer or administration 
     under subsection (a) of any funds appropriated or otherwise 
     made available pursuant to any other authorization of 
     appropriations or by any appropriations Act; or
       (B) to limit the application of subsection (b) to title 49, 
     United States Code.
                   TITLE X--MISCELLANEOUS PROVISIONS
        Subtitle A--Sportfishing and Recreational Boating Safety

     SEC. 10101. SHORT TITLE.

       This subtitle may be cited as the ``Sportfishing and 
     Recreational Boating Safety Act of 2005''.

    CHAPTER 1--DINGELL-JOHNSON SPORT FISH RESTORATION ACT AMENDMENTS

     SEC. 10111. AMENDMENT OF DINGELL-JOHNSON SPORT FISH 
                   RESTORATION ACT.

       Except as otherwise expressly provided, whenever in this 
     chapter 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 Dingell-Johnson Sport Fish Restoration 
     Act (16 U.S.C. 777 et seq.).

     SEC. 10112. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 3 (16 U.S.C. 777b) is amended--
       (1) by striking ``the succeeding fiscal year.'' in the 
     third sentence and inserting ``succeeding fiscal years.''; 
     and
       (2) by striking ``in carrying on the research program of 
     the Fish and Wildlife Service in respect to fish of material 
     value for sport and recreation.'' and inserting ``to 
     supplement the 57 percent of the balance of each annual 
     appropriation to be apportioned among the States, as provided 
     for in section 4(c).''.
       (b) Conforming Amendments.--
       (1) In general.--The first sentence of section 3 (16 U.S.C. 
     777b) is amended--
       (A) by striking ``Sport Fish Restoration Account'' and 
     inserting ``Sport Fish Restoration and Boating 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, 2005.

     SEC. 10113. DIVISION OF ANNUAL APPROPRIATIONS.

       Section 4 (16 U.S.C. 777c) is amended--
       (1) by striking subsections (a) through (c) and 
     redesignating subsections (d), (e), (f), and (g) as 
     subsections (b), (c), (d), and (e), respectively;
       (2) by inserting before subsection (b), as redesignated by 
     paragraph (1), the following:
       ``(a) In General.--For each of fiscal years 2006 through 
     2009, the balance of each annual appropriation made in 
     accordance with the provisions of section 3 remaining after 
     the distributions for administrative expenses and other 
     purposes under subsection (b) and for multistate conservation 
     grants under section 14 shall be distributed as follows:
       ``(1) Coastal wetlands.--An amount equal to 18.5 percent to 
     the Secretary of the Interior for distribution as provided in 
     the Coastal Wetlands Planning, Protection, and Restoration 
     Act (16 U.S.C. 3951 et seq.).
       ``(2) Boating safety.--An amount equal to 18.5 percent to 
     the Secretary of the department in which the Coast Guard is 
     operating for State recreational boating safety programs 
     under section 13106 of title 46, United States Code.
       ``(3) Clean vessel act.--An amount equal to 2.0 percent to 
     the Secretary of the Interior for qualified projects under 
     section 5604(c) of the Clean Vessel Act of 1992 (33 U.S.C. 
     1322 note).
       ``(4) Boating infrastructure.--An amount equal to 2.0 
     percent to the Secretary of the Interior for obligation for 
     qualified projects under section 7404(d) of the Sportfishing 
     and Boating Safety Act of 1998 (16 U.S.C. 777g-1(d)).
       ``(5) National outreach and communications.--An amount 
     equal to 2.0 percent to the Secretary of the Interior for the 
     National Outreach and Communications Program under section 
     8(d) of this Act. Such amounts shall remain

[[Page H7435]]

     available for 3 fiscal years, after which any portion thereof 
     that is unobligated by the Secretary for that program may be 
     expended by the Secretary under subsection (c) of this 
     section.'';
       (3) by striking (b)(1)(A), as redesignated by paragraph 
     (1), and inserting the following:
       ``(A) Set-aside for administration.--From the annual 
     appropriation made in accordance with section 3, for each of 
     fiscal years 2006 through 2009, the Secretary of the Interior 
     may use no more than the amount specified in subparagraph (B) 
     for the fiscal year for expenses for administration incurred 
     in the implementation of this Act, in accordance with this 
     section and section 9. The amount specified in subparagraph 
     (B) for a fiscal year may not be included in the amount of 
     the annual appropriation distributed under subsection (a) for 
     the fiscal year.'';
       (4) by striking ``Secretary of the Interior, after the 
     distribution, transfer, use, and deduction under subsections 
     (a), (b), (c), and (d), respectively, and after deducting 
     amounts used for grants under section 14, shall apportion the 
     remainder'' in subsection (c), as redesignated by paragraph 
     (1), and inserting ``Secretary, for each of fiscal years 2006 
     through 2009, after the distribution, transfer, use and 
     deduction under subsection (b), and after deducting amounts 
     used for grants under section 14 of this title, shall 
     apportion 57 percent of the balance'';
       (5) by striking ``per centum'' each place it appears in 
     subsection (c), as redesignated by paragraph (1), and 
     inserting ``percent'';
       (6) by striking ``subsections (a), (b)(3)(A), (b)(3)(B), 
     and (c)'' in paragraph (1) of subsection (e), as redesignated 
     by paragraph (1), and inserting ``paragraphs (1), (3), (4), 
     and (5) of subsection (a)''; and
       (7) by adding at the end the following:
       ``(f) Transfer of Certain Funds.--Amounts available under 
     paragraphs (3) and (4) of subsection (a) that are unobligated 
     by the Secretary of the Interior after 3 fiscal years shall 
     be transferred to the Secretary of the department in which 
     the Coast Guard is operating and shall be expended for State 
     recreational boating safety programs under section 13106(a) 
     of title 46, United States Code.''.

     SEC. 10114. MAINTENANCE OF PROJECTS.

       Section 8 (16 U.S.C. 777g) is amended--
       (1) by striking ``in carrying out the research program of 
     the Fish and Wildlife Service in respect to fish of material 
     value for sport or recreation.'' in subsection (b)(2) and 
     inserting ``to supplement the 57 percent of the balance of 
     each annual appropriation to be apportioned among the States 
     under section 4(c).''; and
       (2) by striking ``subsection (c) or (d)'' in subsection 
     (d)(3) and inserting ``subsection (a)(5) or subsection (b)''.

     SEC. 10115. BOATING INFRASTRUCTURE.

       Section 7404(d)(1) of the Sportfishing and Boating Safety 
     Act of 1998 (16 U.S.C. 777g-1(d)(1)) is amended by striking 
     ``section 4(b)(3)(B) of the Act entitled `An Act to provide 
     that the United States shall aid the States in fish 
     restoration and management projects, and for other purposes,' 
     approved August 9, 1950, as amended by this Act,'' and 
     inserting ``section 4(a)(4) of the Dingell-Johnson Sport Fish 
     Restoration Act''.

     SEC. 10116. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF 
                   AMOUNTS FOR EXPENSES FOR ADMINISTRATION.

       Section 9 (16 U.S.C. 777h) is amended--
       (1) by striking ``section 4(d)(1)'' in subsection (a) and 
     inserting ``section 4(b)''; and
       (2) by striking ``section 4(d)(1)'' in subsection (b)(1) 
     and inserting ``section 4(b)''.

     SEC. 10117. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO 
                   RICO, THE DISTRICT OF COLUMBIA, GUAM, AMERICAN 
                   SAMOA, THE COMMONWEALTH OF THE NORTHERN MARIANA 
                   ISLANDS, AND THE VIRGIN ISLANDS.

       Section 12 (16 U.S.C. 777k) is amended by striking ``in 
     carrying on the research program of the Fish and Wildlife 
     Service in respect to fish of material value for sport or 
     recreation.'' and inserting ``to supplement the 57 percent of 
     the balance of each annual appropriation to be apportioned 
     among the States under section 4(b) of this Act.''.

     SEC. 10118. MULTISTATE CONSERVATION GRANT PROGRAM.

       Section 14 (16 U.S.C. 777m) is amended--
       (1) by striking so much of subsection (a) as precedes 
     paragraph (2) and inserting the following:
       ``(a) In General.--
       ``(1) Amount for grants.--For each of fiscal years 2006 
     through 2009, not more than $3,000,000 of each annual 
     appropriation made in accordance with the provisions of 
     section 3 shall be distributed to the Secretary of the 
     Interior for making multistate conservation project grants in 
     accordance with this section.'';
       (2) by striking ``section 4(e)'' each place it appears in 
     subsection (a)(2)(B) and inserting ``section 4(c)''; and
       (3) by striking ``Of the balance of each annual 
     appropriation made under section 3 remaining after the 
     distribution and use under subsections (a), (b), and (c) of 
     section 4 for each fiscal year and after deducting amounts 
     used for grants under subsection (a)--'' in subsection (e) 
     and inserting ``Of amounts made available under section 4(b) 
     for each fiscal year--''.

     SEC. 10119. EXPENDITURE OF REMAINING BALANCE IN BOAT SAFETY 
                   ACCOUNT.

       The Act is amended by redesignating section 15 (16 U.S.C. 
     777 note) as section 16, and by inserting after section 14 
     the following:

     ``SEC. 15. EXPENDITURE OF REMAINING BALANCE IN BOAT SAFETY 
                   ACCOUNT.

       ``Amounts remaining in the Boat Safety Account on October 
     1, 2005, and amounts thereafter credited to the Account under 
     section 9602(b) of the Internal Revenue Code of 1986, shall 
     be available, without further appropriation, for making 
     expenditures before October 1, 2010, to carry out the 
     purposes of this section and shall be distributed as follows:
       ``(1) In fiscal year 2006, $28,155,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $11,200,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $1,245,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $1,245,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $1,245,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $12,800,000 to be added to funds available under 
     subsection (b) of that section; and
       ``(B) under section 14 of this Act, $420,000, to be added 
     to funds available under subsection (a)(1) of that section.
       ``(2) In fiscal year 2007, $22,419,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $8,075,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $713,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $713,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $713,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $11,925,000 to be added to funds available under 
     subsection (b) of this Act; and
       ``(B) under section 14 of this Act, $280,000 to be added to 
     funds available under subsection (a)(1) of that section.
       ``(3) In fiscal year 2008, $17,139,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $6,800,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $333,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $333,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $333,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $9,200,000 to be added to funds available under 
     subsection (b) of that section; and
       ``(B) under section 14 of this Act, $140,000, to be added 
     to funds available under subsection (a)(1) of that section.
       ``(4) In fiscal year 2009, $12,287,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $5,100,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $48,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $48,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $48,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $6,900,000 to be added to funds available under 
     subsection (b) of that section; and
       ``(B) under section 14 of this Act, $143,000, to be added 
     to funds available under subsection (a)(1) of that section.
       ``(5) In fiscal year 2010, all remaining funds in the 
     Account shall be distributed under section 4 of this Act in 
     the following manner:
       ``(A) one-third to be added to funds available under 
     subsection (b); and
       ``(B) two-thirds to be added to funds available under 
     subsection (h).''.

             CHAPTER 2--CLEAN VESSEL ACT OF 1992 AMENDMENTS

     SEC. 10131. GRANT PROGRAM.

       Section 5604(c)(2) of the Clean Vessel Act of 1992 (33 
     U.S.C. 1322 note) is amended--
       (1) by striking subparagraph (A);
       (2) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively; and
       (3) in subparagraph (A), as so redesignated, by striking 
     ``receptions'' and inserting ``reception''.

       CHAPTER 3--RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS

     SEC. 10141. TECHNICAL CORRECTION.

       Section 13102(a) of title 46, United States Code, is 
     amended by striking ``the Boat Safety Account'' and inserting 
     ``the Sport Fish Restoration and Boating Trust Fund''.

     SEC. 10142. AVAILABILITY OF ALLOCATIONS.

       Section 13104(a) of title 46, United States Code, is 
     amended--
       (1) by striking ``2 years'' in paragraph (1) and inserting 
     ``3 years''; and
       (2) by striking ``2-year'' in paragraph (2) and inserting 
     ``3-year''.

     SEC. 10143. AUTHORIZATION OF APPROPRIATIONS FOR STATE 
                   RECREATIONAL BOATING SAFETY PROGRAMS.

       Section 13106 of title 46, United States Code, is amended--
       (1) in subsection (a)(1) by striking ``the amount 
     appropriated from the Boat Safety Account for that fiscal 
     year'' and inserting ``the amount made available from the 
     Boat Safety Account for that fiscal year under section 10119 
     of the Sportfishing and Recreational Boating Safety Act of 
     2005'';
       (2) in subsection (a)(1) by striking ``section 4(b) of the 
     Act of August 9, 1950 (16 U.S.C. 777c(b))'' and inserting 
     ``subsection (a)(2) of section 4 of the Dingell-Johnson Sport 
     Fish Restoration Act (16 U.S.C. 777c(a)(2))'';
       (3) in subsection (a)(2) by striking ``not less than one 
     percent and'';
       (4) in subsection (c)(1)--
       (A) by striking ``Secretary of Transportation under 
     paragraph (5)(C) of section 4(b)'' and inserting ``Secretary 
     under subsection (a)(2) of section 4'';
       (B) by striking ``(16 U.S.C. 777c(b))'' and inserting ``(16 
     U.S.C. 777c(a)(2)'';
       (C) by striking ``$3,333,336'' and inserting 
     ``$4,266,666'';

[[Page H7436]]

       (D) by striking ``$1,333,336'' and inserting ``not less 
     than $2,083,333''; and
       (5) in subsection (c)(3) by striking ``until expended.'' 
     and inserting ``during the 2 succeeding fiscal years. Any 
     amount that is unexpected or unobligated at the end of the 3-
     year period during which it is available shall be withdrawn 
     by the Secretary and allocated to the States in addition to 
     any other amounts available for allocation in the fiscal year 
     in which they are withdrawn or the following fiscal year.''.
               Subtitle B--Other Miscellaneous Provisions

     SEC. 10201. NOTICE REGARDING PARTICIPATION OF SMALL BUSINESS 
                   CONCERNS.

       The Secretary shall notify each State or political 
     subdivision of a State to which the Secretary awards a grant 
     or other Federal funds of the criteria for participation by a 
     small business concern in any program or project that is 
     funded, in whole or in part, by the Federal Government under 
     section 155 of the Small Business Reauthorization and 
     Manufacturing Assistance Act of 2004 (15 U.S.C. 567g).

     SEC. 10202. EMERGENCY MEDICAL SERVICES.

       (a) Federal Interagency Committee on Emergency Medical 
     Services.--
       (1) Establishment.--The Secretary of Transportation, the 
     Secretary of Health and Human Services, and the Secretary of 
     Homeland Security, acting through the Under Secretary for 
     Emergency Preparedness and Response, shall establish a 
     Federal Interagency Committee on Emergency Medical Services.
       (2) Membership.--The Interagency Committee shall consist of 
     the following officials, or their designees:
       (A) The Administrator, National Highway Traffic Safety 
     Administration.
       (B) The Director, Preparedness Division, Directorate of 
     Emergency Preparedness and Response of the Department of 
     Homeland Security.
       (C) The Administrator, Health Resources and Services 
     Administration, Department of Health and Human Services.
       (D) The Director, Centers for Disease Control and 
     Prevention, Department of Health and Human Services.
       (E) The Administrator, United States Fire Administration, 
     Directorate of Emergency Preparedness and Response of the 
     Department of Homeland Security.
       (F) The Administrator, Centers for Medicare & Medicaid 
     Services, Department of Health and Human Services.
       (G) The Under Secretary of Defense for Personnel and 
     Readiness.
       (H) The Director, Indian Health Service, Department of 
     Health and Human Services.
       (I) The Chief, Wireless Telecommunications Bureau, Federal 
     Communications Commission.
       (J) A representative of any other Federal agency appointed 
     by the Secretary of Transportation or the Secretary of 
     Homeland Security through the Under Secretary for Emergency 
     Preparedness and Response, in consultation with the Secretary 
     of Health and Human Services, as having a significant role in 
     relation to the purposes of the Interagency Committee.
       (K) A State emergency medical services director appointed 
     by the Secretary.
       (3) Purposes.--The purposes of the Interagency Committee 
     are as follows:
       (A) To ensure coordination among the Federal agencies 
     involved with State, local, tribal, or regional emergency 
     medical services and 9-1-1 systems.
       (B) To identify State, local, tribal, or regional emergency 
     medical services and 9-1-1 needs.
       (C) To recommend new or expanded programs, including grant 
     programs, for improving State, local, tribal, or regional 
     emergency medical services and implementing improved 
     emergency medical services communications technologies, 
     including wireless 9-1-1.
       (D) To identify ways to streamline the process through 
     which Federal agencies support State, local, tribal or 
     regional emergency medical services.
       (E) To assist State, local, tribal or regional emergency 
     medical services in setting priorities based on identified 
     needs.
       (F) To advise, consult, and make recommendations on matters 
     relating to the implementation of the coordinated State 
     emergency medical services programs.
       (4) Administration.--The Administrator of the National 
     Highway Traffic Safety Administration, in cooperation with 
     the Administrator of the Health Resources and Services 
     Administration of the Department of Health and Human Services 
     and the Director of the Preparedness Division, Directorate of 
     Emergency Preparedness and Response of the Department of 
     Homeland Security, shall provide administrative support to 
     the Interagency Committee, including scheduling meetings, 
     setting agendas, keeping minutes and records, and producing 
     reports.
       (5) Leadership.--The members of the Interagency Committee 
     shall select a chairperson of the Committee each year.
       (6) Meetings.--The Interagency Committee shall meet as 
     frequently as is determined necessary by the chairperson of 
     the Committee.
       (7) Annual reports.--The Interagency Committee shall 
     prepare an annual report to Congress regarding the 
     Committee's activities, actions, and recommendations.

     SEC. 10203. HUBZONE PROGRAM.

       Section 3(p)(4)(B)(ii) of the Small Business Act (15 U.S.C. 
     632(p)(4)(B)(ii)) is amended--
       (1) in subclause (I) by striking ``or'' at the end;
       (2) in subclause (II) by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding after subclause (II) the following:

       ``(III) there is located a difficult development area, as 
     designated by the Secretary of Housing and Urban Development 
     in accordance with section 42(d)(5)(C)(iii) of the Internal 
     Revenue Code of 1986, within Alaska, Hawaii, or any territory 
     or possession of the United States outside the 48 contiguous 
     States.''.

     SEC. 10204. CATASTROPHIC HURRICANE EVACUATION PLANS.

       (a) In General.--The Secretary and the Secretary of 
     Homeland Security (referred to in this section as the 
     ``Secretaries''), in coordination with the Gulf Coast States 
     and contiguous States, shall jointly review and assess 
     Federal and State evacuation plans for catastrophic 
     hurricanes impacting the Gulf Coast Region and report its 
     findings and recommendations to Congress.
       (b) Consultation.--In carrying out this section, the 
     Secretaries shall consult with appropriate Federal, State, 
     and local transportation and emergency management agencies.
       (c) Contents.--In conducting the review, the Secretaries 
     shall consider, at a minimum--
       (1) all practical modes of transportation available for 
     evacuations;
       (2) the extent to which evacuation plans are coordinated 
     with neighboring States;
       (3) methods of communicating evacuation plans and preparing 
     citizens in advance of evacuations; and
       (4) methods of coordinating communication with evacuees 
     during plan execution.
       (d) Report.--The Secretaries shall submit to Congress a 
     report of their findings under this section and 
     recommendations not later than October 1, 2006.

     SEC. 10205. INTERMODAL TRANSPORTATION FACILITY EXPANSION.

       Any funds provided for the Federal share, and any funds 
     provided for the non-Federal share, for an intermodal 
     transportation maritime facility at the Port of Anchorage, 
     Alaska, or for access to that facility shall be transferred 
     to and administered by the Administrator of the Maritime 
     Administration.

     SEC. 10206. ELIGIBILITY TO PARTICIPATE IN WESTERN ALASKA 
                   COMMUNITY DEVELOPMENT QUOTA PROGRAM.

       A community shall be eligible to participate in the western 
     Alaska community development quota program established under 
     section 305(i) of the Magnuson-Stevens Fishery Conservation 
     and Management Act (16 U.S.C. 1855(i)) if the community--
       (1) is listed in table 7 to part 679 of title 50, Code of 
     Federal Regulations, as in effect on March 8, 2004; or
       (2) was determined to be eligible participate in such 
     program by the National Marine Fisheries Service on April 19, 
     1999.

     SEC. 10207. RAIL REHABILITATION AND BRIDGE REPAIR.

       There are authorized to be appropriated to the Secretary of 
     Transportation for rail rehabilitation and bridge repair in 
     the State of Alabama for the period encompassing fiscal years 
     2006 through 2010 such sums as may be necessary, for work 
     on--
       (1) the Luxapalila Valley Railroad from the Mississippi and 
     Alabama State line east to Belk, Alabama;
       (2) the Meridian & Bigbee Railroad from the Mississippi and 
     Alabama State line east to Burkeville, Alabama;
       (3) the Three Notch Railroad from Georgiana, Alabama, to 
     Andalusia, Alabama;
       (4) the Wiregrass Railroad in Alabama;
       (5) the Alabama & Gulf Coast Railroad from the Mississippi 
     and Alabama State line southeast to Mobile and Atmore in 
     Alabama; and
       (6) the railroad bridge that spans the Coosa River, 
     connecting the east and west sides of the City of Gadsden, 
     Alabama.

     SEC. 10208. 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.--An owner of a motor vehicle that rents 
     or leases the vehicle to a person (or an affiliate of the 
     owner) shall not be liable under the law of any State or 
     political subdivision thereof, by reason of being the owner 
     of the vehicle (or an affiliate of the owner), for harm to 
     persons or property that results or arises out of the use, 
     operation, or possession of the vehicle during the period of 
     the rental or lease, if--
       ``(1) the owner (or an affiliate of the owner) is engaged 
     in the trade or business of renting or leasing motor 
     vehicles; and
       ``(2) there is no negligence or criminal wrongdoing on the 
     part of the owner (or an affiliate of the owner).
       ``(b) Financial Responsibility Laws.--Nothing in this 
     section supersedes the law of any State or political 
     subdivision thereof--
       ``(1) imposing financial responsibility or insurance 
     standards on the owner of a motor vehicle for the privilege 
     of registering and operating a motor vehicle; or
       ``(2) imposing liability on business entities engaged in 
     the trade or business of renting or leasing motor vehicles 
     for failure to meet the financial responsibility or liability 
     insurance requirements under State law.
       ``(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, the following 
     definitions apply:
       ``(1) Affiliate.--The term `affiliate' means a person other 
     than the owner that directly or indirectly controls, is 
     controlled by, or is under common control with the owner. In 
     the preceding sentence, the term `control' means the

[[Page H7437]]

     power to direct the management and policies of a person 
     whether through ownership of voting securities or otherwise.
       ``(2) Owner.--The term `owner' means a person who is--
       ``(A) a record or beneficial owner, holder of title, 
     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 a bailee of a motor vehicle, in 
     the trade or business of renting or leasing motor vehicles, 
     having the use or possession thereof, 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.''.
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by inserting after the item relating to section 30105 
     the following:

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

     SEC. 10209. MIDWAY ISLAND.

       (a) Grants.--In order to provide for both the safety of 
     commercial and military aviation operations and the support 
     of resource management in the remote Pacific, the Commandant 
     of the Coast Guard, in consultation with the Secretary of 
     Transportation and the Undersecretary of Commerce for Oceans 
     and Atmosphere, shall develop such memoranda of understanding 
     as may be necessary, and to make grants or otherwise provide 
     funding, to provide for the operation of the Midway Airport, 
     the rightsizing of necessary infrastructure and support 
     facilities, the maintenance and development of the Airport, 
     and other related matters.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the United States Coast Guard, the 
     Department of Transportation, and the National Oceanic and 
     Atmospheric Administration such sums as may be necessary to 
     carry out this section for fiscal years 2006 through 2009.

     SEC. 10210. DEMONSTRATION OF DIGITAL PROJECT SIMULATION.

       (a) In General.--
       (1) Digital project simulation demonstration project.--The 
     Secretary shall establish a demonstration initiative using 
     digital project simulation to plan, design, and construct the 
     project listed in item 31 designated in section 1934 of the 
     SAFETEA-LU.
       (2) Cooperation.--To be eligible to receive funds made 
     available for the project referred to in paragraph (1), the 
     project sponsor, including private entities working with the 
     project sponsor on the project, and the State shall enter 
     into an agreement to work cooperatively with the Secretary to 
     use digital project simulation for such project and to 
     evaluate the effectiveness of using such simulation.
       (b) Simulation Program Development.--
       (1) In general.--In establishing the demonstration 
     initiative under subsection (a), the Secretary shall provide, 
     to the extent practicable, that--
       (A) the planning, design, and construction of the project 
     is carried out by using digital project simulation to achieve 
     savings and efficiency in investment planning, project 
     delivery coordination, and facility management; and
       (B) in constructing such project, the project sponsor use 
     digital lifecycle management techniques, including the use of 
     embedded electronics and software to monitor performance of 
     the infrastructure and provide safety and security 
     information to the project sponsor.
       (2) Collaboration.--The Secretary, the State, and the 
     project sponsor may consult with technology companies and 
     educational institutions that strive to develop and enhance 
     technologies, including digital project simulation, that save 
     money and time by using efficient methods of design, 
     construction, and operation for transportation infrastructure 
     projects.
       (c) Report.--
       (1) In general.--Not later than one year after completion 
     of the project described in subsection (a), the Secretary 
     shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     detailed report comparing the application of digital project 
     simulation for such project to more traditional approaches to 
     planning, design, and construction.
       (2) Performance measures and recommendations.--The report 
     shall also include--
       (A) a description of the performance measures applied, 
     including cost comparisons and length of construction; and
       (B) recommendations, if any, for administrative or 
     legislative action.
       (d) Definition.--For purposes of this section, the term 
     ``digital project simulation'' means computer-assisted three-
     dimensional technology and digital lifecycle management.

     SEC. 10211. ENVIRONMENTAL PROGRAMS.

       (a) Oklahoma.--Notwithstanding any other provision of law, 
     if the Administrator of the Environmental Protection Agency 
     (referred to in this section as the ``Administrator'') 
     determines that a regulatory program submitted by the State 
     of Oklahoma for approval by the Administrator under a law 
     administered by the Administrator meets applicable 
     requirements of the law, and the Administrator approves the 
     State to administer the State program under the law with 
     respect to areas in the State that are not Indian country, on 
     request of the State, the Administrator shall approve the 
     State to administer the State program in the areas of the 
     State that are in Indian country, without any further 
     demonstration of authority by the State.
       (b) Treatment as State.--Notwithstanding any other 
     provision of law, the Administrator may treat an Indian tribe 
     in the State of Oklahoma as a State under a law administered 
     by the Administrator only if--
       (1) the Indian tribe meets requirements under the law to be 
     treated as a State; and
       (2) the Indian tribe and the agency of the State of 
     Oklahoma with federally delegated program authority enter 
     into a cooperative agreement, subject to review and approval 
     of the Administrator after notice and opportunity for public 
     hearing, under which the Indian tribe and that State agency 
     agree to treatment of the Indian tribe as a State and to 
     jointly plan administer program requirements.

     SEC. 10212. RESCISSION OF UNOBLIGATED BALANCES.

       (a) In General.--On September 30, 2009, $8,543,000,000 of 
     the unobligated balances of funds apportioned before such 
     date to the States for the Interstate maintenance, national 
     highway system, bridge, congestion mitigation and air quality 
     improvement, surface transportation (other than the STP set-
     aside programs), metropolitan planning, minimum guarantee, 
     Appalachian development highway system, recreational trails, 
     safe routes to school, freight intermodal connectors, 
     coordinated border infrastructure, high risk rural road, and 
     highway safety improvement programs, and each of the STP set-
     aside programs, is rescinded.
       (b) Allocation Among States.--The Secretary shall determine 
     each State's share of the amount to be rescinded by 
     subsection (a) on September 30, 2009, by multiplying 
     $8,543,000,000 by the ratio of the aggregate amount 
     apportioned to such State for fiscal years 2004 through 2009 
     for all the programs referred to in subsection (a) to the 
     aggregate amount apportioned to all States for such fiscal 
     years for those programs.
       (c) Calculations.--To determine the allocation of the 
     amount to be rescinded for a State under subsection (b) among 
     the programs referred to in subsection (a), the Secretary 
     shall make the following calculations:
       (1) The Secretary shall multiply such amount to be 
     rescinded by the ratio that the aggregate amount of 
     unobligated funds available to the State on September 30, 
     2009, for each such program bears to the aggregate amount of 
     unobligated funds available to the State on September 30, 
     2009, for all such programs.
       (2) The Secretary shall multiply such amount to be 
     rescinded by the ratio that the aggregate of the amount 
     apportioned to the State for each such program for fiscal 
     years 2004 through 2009 bears to the aggregate amount 
     apportioned to the State for all such programs for fiscal 
     years 2004 through 2009.
       (d) Allocation Among Programs.--
       (1) In general.--The Secretary, in consultation with the 
     State, shall rescind for the State from each program referred 
     to in subsection (a) the amount determined for the program 
     under subsection (c)(1).
       (2) Special rule.--
       (A) Restoration of funds for covered programs.--If the 
     rescission calculated under subsection (c)(1) for a covered 
     program exceeds the amount calculated for the covered program 
     under subsection (c)(2), the State shall immediately restore 
     to the apportionment account for the covered program from the 
     unobligated balances of programs referred to in subsection 
     (a) (other than covered programs) the amount of funds 
     required so that the net rescission from the covered program 
     does not exceed the amount calculated for the covered program 
     under subsection (c)(2).
       (B) Treatment of restored funds.--Any funds restored under 
     subparagraph (A) shall be deemed to be the funds that were 
     rescinded for the purposes of obligation.
       (3) Covered program defined.--In paragraph (2), the term 
     ``covered program'' means a program authorized under sections 
     130 and 152 of title 23, United States Code, paragraph (2) or 
     (3) of section 133(d) of that title, section 144 of that 
     title, section 149 of that title, or section 1404 of this 
     Act.
       (e) Treatment of Safety Programs.--In making calculations 
     under subsections (c)(1), (c)(2), and (d)(2), the Secretary 
     shall treat the STP set-aside program for safety programs and 
     the highway safety improvement program as a single program.
       (f) STP Set-Aside Program Defined.--In this section, the 
     term ``STP set-aside program'' means the amount set aside 
     under section 133(d) of title 23, United States Code, for 
     each of the safety programs, transportation enhancement 
     activities, and division between urbanized areas of over 
     200,000 population and other areas.

     SEC. 10213. TRIBAL LAND.

       Section 707(a) of Public Law 106-568 (25 U.S.C. 1041e(a)) 
     is amended--
       (1) in paragraph (1) by striking ``(1) In general.--''; and
       (2) by striking paragraph (2).
          Subtitle C--Specific Vehicle Safety-related Rulings

     SEC. 10301. VEHICLE ROLLOVER PREVENTION AND CRASH MITIGATION.

       (a) In General.--Subchapter II of chapter 301 is amended by 
     adding at the end the following:

     ``Sec. 30128. Vehicle rollover prevention and crash 
       mitigation

       ``(a) In General.--The Secretary shall initiate rulemaking 
     proceedings, for the purpose of establishing rules or 
     standards that will reduce vehicle rollover crashes and 
     mitigate deaths and injuries associated with such crashes for 
     motor vehicles with a gross vehicle weight rating of not more 
     than 10,000 pounds.
       ``(b) Rollover Prevention.--One of the rulemaking 
     proceedings initiated under subsection (a) shall be to 
     establish performance criteria to reduce the occurrence of 
     rollovers consistent with stability enhancing technologies. 
     The Secretary shall issue a proposed rule in this proceeding 
     by rule by October 1, 2006, and a final rule by April 1, 
     2009.
       ``(c) Occupant Ejection Prevention.--

[[Page H7438]]

       ``(1) In general.--The Secretary shall also initiate a 
     rulemaking proceeding to establish performance standards to 
     reduce complete and partial ejections of vehicle occupants 
     from outboard seating positions. In formulating the standards 
     the Secretary shall consider various ejection mitigation 
     systems. The Secretary shall issue a final rule under this 
     paragraph no later than October 1, 2009.
       ``(2) Door locks and door retention.--The Secretary shall 
     complete the rulemaking proceeding initiated to upgrade 
     Federal Motor Vehicle Safety Standard No. 206, relating to 
     door locks and door retention, no later than 30 months after 
     the date of enactment of this section.
       ``(d) Protection of Occupants.--One of the rulemaking 
     proceedings initiated under subsection (a) shall be to 
     establish performance criteria to upgrade Federal Motor 
     Vehicle Safety Standard No. 216 relating to roof strength for 
     driver and passenger sides. The Secretary may consider 
     industry and independent dynamic tests that realistically 
     duplicate the actual forces transmitted during a rollover 
     crash. The Secretary shall issue a proposed rule by December 
     31, 2005, and a final rule by July 1, 2008.
       ``(e) Deadlines.--If the Secretary determines that the 
     deadline for a final rule under this section cannot be met, 
     the Secretary shall--
       ``(1) notify the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Energy and Commerce and explain why that deadline cannot be 
     met; and
       ``(2) establish a new deadline.''.

     SEC. 10302. SIDE-IMPACT CRASH PROTECTION RULEMAKING.

       (a) Rulemaking.--The Secretary shall complete a rulemaking 
     proceeding under chapter 301 of title 49, United States Code, 
     to establish a standard designed to enhance passenger motor 
     vehicle occupant protection, in all seating positions, in 
     side impact crashes. The Secretary shall issue a final rule 
     by July 1, 2008.
       (b) Deadlines.--If the Secretary determines that the 
     deadline for a final rule under this section cannot be met, 
     the Secretary shall--
       (1) notify the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Energy and Commerce and explain why that deadline cannot be 
     met; and
       (2) establish a new deadline.

     SEC. 10303. TIRE RESEARCH.

       Within 2 years after the date of enactment of this Act, the 
     Secretary shall transmit a report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce on research 
     conducted to address tire aging. The report shall include a 
     summary of any Federal agency findings, activities, 
     conclusions, and recommendations concerning tire aging and 
     recommendations for potential rulemaking regarding tire 
     aging.
       (a) Conforming Amendment.--The chapter analysis for chapter 
     301 is amended by inserting after the item relating to 
     section 30127 the following:

``30128. Vehicle accident ejection protection.''.

     SEC. 10304. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY.

       (a) In General.--The Administrator of the National Highway 
     Traffic Safety Administration shall conduct a study of 
     effective methods for reducing the incidence of injury and 
     death outside of parked passenger motor vehicles with a gross 
     vehicle weight rating of not more than 10,000 pounds 
     attributable to movement of such vehicles. The Administrator 
     shall complete the study within 1 year after the date of 
     enactment of this Act and report its findings to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Energy and Commerce not 
     later than 15 months after the date of enactment of this Act.
       (b) Specific Issues to Be Covered.--The study required by 
     subsection (a) shall--
       (1) include an analysis of backover prevention technology;
       (2) identify, evaluate, and compare the available 
     technologies for detecting people or objects behind a motor 
     vehicle with a gross vehicle weight rating of not more than 
     10,000 pounds for their accuracy, effectiveness, cost, and 
     feasibility for installation; and
       (3) provide an estimate of cost savings that would result 
     from widespread use of backover prevention devices and 
     technologies in motor vehicles with a gross vehicle weight 
     rating of not more than 10,000 pounds, including savings 
     attributable to the prevention of--
       (A) injuries and fatalities; and
       (B) damage to bumpers and other motor vehicle parts and 
     damage to other objects.

     SEC. 10305. NONTRAFFIC INCIDENT DATA COLLECTION.

       (a) In General.--In conjunction with the study required in 
     section 10304, the National Highway Traffic Safety 
     Administration shall establish a method to collect and 
     maintain data on the number and types of injuries and deaths 
     involving motor vehicles with a gross vehicle weight rating 
     of not more than 10,000 pounds in non-traffic incidents.
       (b) Data Collection and Publication.--The Secretary of 
     Transportation shall publish the data collected under 
     subsection (a) no less frequently than biennially.

     SEC. 10306. STUDY OF SAFETY BELT USE TECHNOLOGIES.

       The Secretary shall conduct a review of safety belt use 
     technologies to consider possible revisions in strategies for 
     achieving further gains in safety belt use. The Secretary 
     shall complete the study by July 1, 2008.

     SEC. 10307. 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--
       (1) by striking ``and'' after the semicolon in subsection 
     (e);
       (2) by inserting ``and'' after the semicolon in subsection 
     (f)(3);
       (3) by striking ``(3).'' in subsection (f)(4) and inserting 
     ``(3);''; and
       (4) by adding at the end the following:
       ``(g) if 1 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, 
     or other applicable rating, that corresponds to each such 
     assigned safety rating displayed in a clearly differentiated 
     fashion indicating the maximum possible 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);
       ``(3) contains information describing the nature and 
     meaning of the crash test data presented and a reference to 
     additional vehicle safety resources, including http://
www.safecar.gov; and
       ``(4) 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
       ``(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.--The Secretary of Transportation shall 
     issue regulations to ensure that the labeling requirements 
     under subsections (g) and (h) of section 3 of the Automobile 
     Information Disclosure Act, as added by subsection (a), are 
     implemented by September 1, 2007.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation, to 
     accelerate the testing processes and increasing the number of 
     vehicles tested under the New Car Assessment Program of the 
     National Highway Traffic Safety Administration--
       (1) $15,000,000 for fiscal year 2006;
       (2) $8,134,065 for fiscal year 2007;
       (3) $8,418,760 for fiscal year 2008;
       (4) $8,713,410 for fiscal year 2009; and
       (5) $9,018,385 for fiscal year 2010.

     SEC. 10308. POWER WINDOW SWITCHES.

       The Secretary shall upgrade Federal Motor Vehicle Safety 
     Standard 118 to require that power windows in motor vehicles 
     not in excess of 10,000 pounds have switches that raise the 
     window only when the switch is pulled up or out. The 
     Secretary shall issue a final rule implementing this section 
     by April 1, 2007.

     SEC. 10309. 15-PASSENGER VAN SAFETY.

       (a) Testing.--
       (1) In general.--The Secretary of Transportation shall 
     require the testing of 15-passenger vans as part of the 
     rollover resistance program of the National Highway Traffic 
     Safety Administration's new car assessment program.
       (2) 15-passenger van defined.--In this subsection, the term 
     ``15-passenger van'' means a vehicle that seats 10 to 14 
     passengers, not including the driver.
       (b) Prohibition of Purchase, Rental, or Lease of 
     Noncomplying 15-Passenger Vans for School Use.--Section 
     30112(a) is amended--
       (1) by inserting ``(1)'' before ``Except as provided''; 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 school or school system may not purchase or lease a new 15-
     passenger van if it will be used significantly by, or on 
     behalf of, the school or school system to transport 
     preprimary, primary, or secondary school students to or from 
     school or an event related to school, unless the 15-passenger 
     van complies with the motor vehicle standards prescribed for 
     school buses and multifunction school activity buses under 
     this title. This paragraph does not apply to the purchase or 
     lease of a 15-passenger van under a contract executed before 
     the date of enactment of this paragraph.''.
       (c) Penalty.--Section 30165(a) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) School buses.--
       ``(A) In general.--Notwithstanding paragraph (1), the 
     maximum amount of a civil penalty under this paragraph shall 
     be $10,000 in the case of--
       ``(i) the manufacture, sale, offer for sale, introduction 
     or delivery for introduction into interstate commerce, or 
     importation of a school bus or school bus 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.
       ``(B) Related series of violations.--A separate violation 
     occurs for each motor vehicle or item of motor vehicle 
     equipment and for each failure or refusal to allow or perform 
     an act required by that section. The maximum penalty under 
     this paragraph for a related series of violations is 
     $15,000,000.''.

     SEC. 10310. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary to 
     carry out this subtitle, chapter 301 of title 49, and part C 
     of subtitle VI of title 49, United States Code--

[[Page H7439]]

       (1) $136,000,000 for fiscal year 2006;
       (2) $142,800,000 for fiscal year 2007;
       (3) $149,900,000 for fiscal year 2008; and
       (4) $157,400,000 for fiscal year 2009.
    TITLE XI--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

     SEC. 1100. 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. 1101. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST 
                   FUNDS.

       (a) Extension of Taxes.--
       (1) In general.--The following provisions are each amended 
     by striking ``2005'' each place it appears and inserting 
     ``2011'':
       (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) (relating to certain alcohol fuels).
       (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).
       (2) Extension of tax, etc., on use of certain heavy 
     vehicles.--The following provisions are each amended by 
     striking ``2006'' each place it appears and inserting 
     ``2011'':
       (A) Section 4481(f) (relating to period tax in effect).
       (B) Section 4482(c)(4) (relating to taxable period).
       (C) Section 4482(d) (relating to special rule for taxable 
     period in which termination date occurs).
       (3) Floor stocks refunds.--Section 6412(a)(1) (relating to 
     floor stocks refunds) is amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2011'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2012''.
       (b) Extension of Certain Exemptions.--
       (1) Certain tax-free sales.--Section 4221(a) (relating to 
     certain tax-free sales) is amended by striking ``2005'' and 
     inserting ``2011''.
       (2) Termination of exemptions for highway use tax.--Section 
     4483(h) (relating to termination of exemptions for highway 
     use tax) is amended by striking ``2006'' and inserting 
     ``2011''.
       (c) Extension of Transfers of Certain Taxes.--
       (1) In general.--Paragraphs (1) and (2) of subsection (b), 
     and paragraphs (2) and (3) of subsection (c), of section 9503 
     (relating to the Highway Trust Fund) are each amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2011'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2012''.
       (2) Motorboat and small-engine fuel tax transfers.--
       (A) In general.--Subparagraph (A) of section 9503(c)(5) is 
     amended by striking ``2005'' and inserting ``2011''.
       (B) 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--
       (i) by striking ``2003'' and inserting ``2011'', and
       (ii) by striking ``2004'' each place it appears and 
     inserting ``2012''.
       (d) Extension and Expansion of Expenditures From Trust 
     Funds.--
       (1) Highway trust fund.--
       (A) Highway account.--Paragraph (1) of section 9503(c) of 
     such Code is amended to read as follows:
       ``(1) Federal-aid highway program.--Except as provided in 
     subsection (e), amounts in the Highway Trust Fund shall be 
     available, as provided by appropriation Acts, for making 
     expenditures before September 30, 2009 (October 1, 2009, in 
     the case of expenditures for administrative expenses), to 
     meet those obligations of the United States heretofore or 
     hereafter incurred which are authorized to be paid out of the 
     Highway Trust Fund under the Safe, Accountable, Flexible, 
     Efficient Transportation Equity Act: A Legacy for Users or 
     any other provision of law which was referred to in this 
     paragraph before the date of the enactment of such Act (as 
     such Act and provisions of law are in effect on the date of 
     the enactment of such Act).''.
       (B) Mass transit account.--Paragraph (3) of section 9503(e) 
     of such Code is amended to read as follows:
       ``(3) Expenditures from account.--Amounts in the Mass 
     Transit Account shall be available, as provided by 
     appropriation Acts, for making capital or capital related 
     expenditures (including capital expenditures for new 
     projects) before October 1, 2009, in accordance with the 
     Safe, Accountable, Flexible, Efficient Transportation Equity 
     Act: A Legacy for Users or any other provision of law which 
     was referred to in this paragraph before the date of the 
     enactment of such Act (as such Act and provisions of law are 
     in effect on the date of the enactment of such Act).''.
       (C) Exception to limitation on transfers.--Subparagraph (B) 
     of section 9503(b)(6) is amended by striking ``July 31, 
     2005'' and inserting ``September 30, 2009 (October 1, 2009, 
     in the case of expenditures for administrative expenses)''.
       (2) Aquatic resources trust fund.--
       (A) Sport fish restoration account.--Paragraph (2) of 
     section 9504(b) is amended by striking ``Surface 
     Transportation Extension Act of 2005, Part V'' each place it 
     appears and inserting ``Safe, Accountable, Flexible, 
     Efficient Transportation Equity Act: A Legacy for Users''.
       (B) Exception to limitation on transfers.--Paragraph (2) of 
     section 9504(d) is amended by striking ``July 31, 2005'' and 
     inserting ``October 1, 2009''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 1102. 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--Excise Tax Reform and Simplification

     PART 1--HIGHWAY EXCISE TAXES

     SEC. 1111. MODIFICATION OF GAS GUZZLER TAX.

       (a) Uniform Application of Tax.--Subparagraph (A) of 
     section 4064(b)(1) (defining automobile) is amended by 
     striking the second sentence.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2005.

     SEC. 1112. EXCLUSION FOR TRACTORS WEIGHING 19,500 POUNDS OR 
                   LESS FROM FEDERAL EXCISE TAX ON HEAVY TRUCKS 
                   AND TRAILERS.

       (a) In General.--Subsection (a) of section 4051 (relating 
     to imposition of tax) is amended by redesignating paragraph 
     (4) as paragraph (5) and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Exclusion for tractors weighing 19,500 pounds or 
     less.--The tax imposed by paragraph (1) shall not apply to 
     tractors of the kind chiefly used for highway transportation 
     in combination with a trailer or semitrailer if--
       ``(A) such tractor has a gross vehicle weight of 19,500 
     pounds or less (as determined by the Secretary), and
       ``(B) such tractor, in combination with a trailer or 
     semitrailer, has a gross combined weight of 33,000 pounds or 
     less (as determined by the Secretary).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to sales after September 30, 2005.

     SEC. 1113. VOLUMETRIC EXCISE TAX CREDIT FOR ALTERNATIVE 
                   FUELS.

       (a) Imposition of Tax.--
       (1) In general.--Section 4041(a)(2)(B) (relating to rate of 
     tax) is amended--
       (A) by adding ``and'' at the end of clause (i),
       (B) by striking clauses (ii) and (iii),
       (C) by striking the last sentence, and
       (D) by adding after clause (i) the following new clause:
       ``(ii) in the case of liquefied natural gas, any liquid 
     fuel (other than ethanol and methanol) derived from coal 
     (including peat), and liquid hydrocarbons derived from 
     biomass (as defined in section 29(c)(3)), 24.3 cents per 
     gallon.''.
       (2) Treatment of compressed natural gas.--Section 
     4041(a)(3) (relating to compressed natural gas) is amended--
       (A) by striking ``48.54 cents per MCF (determined at 
     standard temperature and pressure)'' in subparagraph (A) and 
     inserting ``18.3 cents per energy equivalent of a gallon of 
     gasoline'', and
       (B) by striking ``MCF'' in subparagraph (C) and inserting 
     ``energy equivalent of a gallon of gasoline''.
       (3) New reference.--The heading for paragraph (2) of 
     section 4041(a) is amended by striking ``Special motor 
     fuels'' and inserting ``Alternative fuels''.
       (b) Credit for Alternative Fuel and Alternative Fuel 
     Mixtures.--
       (1) In general.--Section 6426(a) (relating to allowance of 
     credits) is amended to read as follows:
       ``(a) Allowance of Credits.--There shall be allowed as a 
     credit--
       ``(1) against the tax imposed by section 4081 an amount 
     equal to the sum of the credits described in subsections (b), 
     (c), and (e), and
       ``(2) against the tax imposed by section 4041 an amount 
     equal to the sum of the credits described in subsection (d).
     No credit shall be allowed in the case of the credits 
     described in subsections (d) and (e) unless the taxpayer is 
     registered under section 4101.''.
       (2) Alternative fuel and alternative fuel mixture credit.--
     Section 6426 (relating to credit for alcohol fuel and 
     biodiesel mixtures) is amended by redesignating subsections 
     (d) and (e) as subsections (f) and (g) and by inserting

[[Page H7440]]

     after subsection (c) the following new subsections:
       ``(d) Alternative Fuel Credit.--
       ``(1) In general.--For purposes of this section, the 
     alternative fuel credit is the product of 50 cents and the 
     number of gallons of an alternative fuel or gasoline gallon 
     equivalents of a nonliquid alternative fuel sold by the 
     taxpayer for use as a fuel in a motor vehicle or motorboat, 
     or so used by the taxpayer.
       ``(2) Alternative fuel.--For purposes of this section, the 
     term `alternative fuel' means--
       ``(A) liquefied petroleum gas,
       ``(B) P Series Fuels (as defined by the Secretary of Energy 
     under section 13211(2) of title 42, United States Code),
       ``(C) compressed or liquefied natural gas,
       ``(D) liquefied hydrogen,
       ``(E) any liquid fuel derived from coal (including peat) 
     through the Fischer-Tropsch process, and
       ``(F) liquid hydrocarbons derived from biomass (as defined 
     in section 29(c)(3)).
     Such term does not include ethanol, methanol, or biodiesel.
       ``(3) Gasoline gallon equivalent.--For purposes of this 
     subsection, the term `gasoline gallon equivalent' means, with 
     respect to any nonliquid alternative fuel, the amount of such 
     fuel having a Btu content of 124,800 (higher heating value).
       ``(4) Termination.--This subsection shall not apply to any 
     sale or use for any period after September 30, 2009 
     (September 30, 2014, in the case of any sale or use involving 
     liquefied hydrogen).
       ``(e) Alternative Fuel Mixture Credit.--
       ``(1) In general.--For purposes of this section, the 
     alternative fuel mixture credit is the product of 50 cents 
     and the number of gallons of alternative fuel used by the 
     taxpayer in producing any alternative fuel mixture for sale 
     or use in a trade or business of the taxpayer.
       ``(2) Alternative fuel mixture.--For purposes of this 
     section, the term `alternative fuel mixture' means a mixture 
     of alternative fuel and taxable fuel (as defined in 
     subparagraph (A), (B), or (C) of section 4083(a)(1)) which--
       ``(A) is sold by the taxpayer producing such mixture to any 
     person for use as fuel, or
       ``(B) is used as a fuel by the taxpayer producing such 
     mixture.
       ``(3) Termination.--This subsection shall not apply to any 
     sale or use for any period after September 30, 2009 
     (September 30, 2014, in the case of any sale or use involving 
     liquefied hydrogen).''.
       (3) Conforming amendments.--
       (A) The section heading for section 6426 is amended by 
     striking ``alcohol fuel and biodiesel'' and inserting 
     ``alcohol fuel, biodiesel, and alternative fuel''.
       (B) The table of sections for subchapter B of chapter 65 is 
     amended by striking ``alcohol fuel and biodiesel'' in the 
     item relating to section 6426 and inserting ``alcohol fuel, 
     biodiesel, and alternative fuel''.
       (C) Section 6427(e) is amended--
       (i) by inserting ``or the alternative fuel mixture credit'' 
     after ``biodiesel mixture credit'' in paragraph (1),
       (ii) by redesignating paragraph (2) as paragraph (3) and 
     paragraph (4) as paragraph (5),
       (iii) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Alternative fuel.--If any person sells or uses an 
     alternative fuel (as defined in section 6426(d)(2)) for a 
     purpose described in section 6426(d)(1) in such person's 
     trade or business, the Secretary shall pay (without interest) 
     to such person an amount equal to the alternative fuel credit 
     with respect to such fuel.'',
       (iv) by striking ``under paragraph (1) with respect to any 
     mixture'' in paragraph (3) (as redesignated by clause (ii)) 
     and inserting ``under paragraph (1) or (2) with respect to 
     any mixture or alternative fuel'',
       (v) by inserting after paragraph (3) (as so redesignated) 
     the following new paragraph:
       ``(4) Registration requirement for alternative fuels.--The 
     Secretary shall not make any payment under this subsection to 
     any person with respect to any alternative fuel credit or 
     alternative fuel mixture credit unless the person is 
     registered under section 4101.'',
       (vi) by striking ``and'' at the end of paragraph (5)(A) (as 
     redesignated by clause (ii)),
       (vii) by striking the period at the end of paragraph (5)(B) 
     (as so redesignated) and inserting a comma,
       (viii) by adding at the end of paragraph (5) (as so 
     redesignated) the following new subparagraphs:
       ``(C) except as provided in subparagraph (D), any 
     alternative fuel or alternative fuel mixture (as defined in 
     subsection (d)(2) or (e)(3) of section 6426) sold or used 
     after September 30, 2009, and
       ``(D) any alternative fuel or alternative fuel mixture (as 
     so defined) involving liquefied hydrogen sold or used after 
     September 30, 2014.'', and
       (ix) by striking ``or Biodiesel Used to Produce Alcohol 
     Fuel and Biodiesel Mixtures'' in the heading and inserting 
     ``, Biodiesel, or Alternative Fuel''.
       (c) Additional Registration Requirements.--Section 
     4101(a)(1) (relating to registration) is amended by striking 
     ``4041(a)(1)'' and inserting ``4041(a)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to any sale or use for any period after September 
     30, 2006.

     PART 2--AQUATIC EXCISE TAXES

     SEC. 1115. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND 
                   TRANSFORMATION OF SPORT FISH RESTORATION 
                   ACCOUNT.

       (a) Simplification of Funding for Boat Safety Account.--
       (1) In general.--Paragraph (4) of section 9503(c) (relating 
     to transfers from Trust Fund for motorboat fuel taxes) is 
     amended--
       (A) by striking so much of that paragraph as precedes 
     subparagraph (D),
       (B) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively, and
       (C) by inserting before subparagraph (C) (as so 
     redesignated) the following:
       ``(4) Transfers from the trust fund for motorboat fuel 
     taxes.--
       ``(A) Transfer to land and water conservation fund.--
       ``(i) In general.--The Secretary shall pay from time to 
     time from the Highway Trust Fund into the land and water 
     conservation fund provided for in title I of the Land and 
     Water Conservation Fund Act of 1965 amounts (as determined by 
     the Secretary) equivalent to the motorboat fuel taxes 
     received on or after October 1, 2005, and before October 1, 
     2011.
       ``(ii) Limitation.--The aggregate amount transferred under 
     this subparagraph during any fiscal year shall not exceed 
     $1,000,000.
       ``(B) Excess funds transferred to sport fish restoration 
     and boating trust fund.--Any amounts in the Highway Trust 
     Fund--
       ``(i) which are attributable to motorboat fuel taxes, and
       ``(ii) which are not transferred from the Highway Trust 
     Fund under subparagraph (A),
     shall be transferred by the Secretary from the Highway Trust 
     Fund into the Sport Fish Restoration and Boating Trust 
     Fund.''.
       (2) Conforming amendment.--Paragraph (5) of section 9503(c) 
     is amended by striking ``Account in the Aquatic Resources'' 
     in subparagraph (A) and inserting ``and Boating''.
       (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 and Boating 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)(4), section 9503(c)(5), or section 
     9602(b).''.
       (2) Conforming amendments.--
       (A) Subsection (b) of section 9504, as amended by section 
     1101 of this Act, is amended--
       (i) by striking ``Account'' in the heading thereof and 
     inserting ``and Boating Trust Fund'',
       (ii) by striking ``Account'' both places it appears in 
     paragraphs (1) and (2) and inserting ``and Boating 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 
     1101 of this Act, is amended--
       (i) by striking ``Aquatic Resources'' in the heading 
     thereof,
       (ii) by striking ``any Account in the Aquatic Resources'' 
     in paragraph (1) and inserting ``the Sport Fish Restoration 
     and Boating'', and
       (iii) by striking ``any such Account'' in paragraph (1) and 
     inserting ``such Trust Fund''.
       (C) Subsection (e) of section 9504 is amended by striking 
     ``Boat Safety Account and Sport Fish Restoration Account'' 
     and inserting ``Sport Fish Restoration and Boating Trust 
     Fund''.
       (D) Section 9504 is amended by striking ``aquatic 
     resources'' in the heading thereof and inserting ``sport fish 
     restoration and boating''.
       (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 and boating''.
       (F) Paragraph (2) of section 1511(e) of the Homeland 
     Security Act of 2002 (6 U.S.C. 551(e)) is amended by striking 
     ``Aquatic Resources Trust Fund of the Highway Trust Fund'' 
     and inserting ``Sport Fish Restoration and Boating Trust 
     Fund''.
       (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, 2005, and 
     amounts thereafter credited to the Account under section 
     9602(b), shall be available, without further appropriation, 
     for making expenditures before October 1, 2010, to carry out 
     the purposes of section 15 of the Dingell-Johnson Sport Fish 
     Restoration Act (as in effect on the date of the enactment of 
     the Safe, Accountable, Flexible, Efficient Transportation 
     Equity Act: A Legacy for Users). For purposes of section 
     9602, the Boat Safety Account shall be treated as a Trust 
     Fund established by this subchapter.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2005.

     SEC. 1116. 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. 1117. 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:

[[Page H7441]]

       ``(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, 2005.

     PART 3--AERIAL EXCISE TAXES

     SEC. 1121. 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:
     ``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 September 
     30, 2005.

     SEC. 1122. 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 ``or'' at the end of subclause (I) of 
     clause (ii), 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 October 1, 2005.

     SEC. 1123. EXEMPTION FROM TAXES ON 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) Rate of Fuel Tax for Seaplanes Subject to Exemption.--
     Subsection (b) of section 4083 is amended by striking 
     ``section 4261(h)'' and inserting ``subsection (h) or (i) of 
     section 4261''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to transportation beginning after September 30, 
     2005.

     SEC. 1124. 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 at any time during which such aircraft is 
     being 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 after 
     September 30, 2005, but shall not apply to any amount paid 
     before such date for such transportation.

     PART 4--TAXES RELATING TO ALCOHOL

     SEC. 1125. 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 and Registration 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.
``Sec. 5124. Registration by dealers.''.

       (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. 5432. 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--

[[Page H7442]]

       ``(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) Subpart C of part II of subchapter A of chapter 51, as 
     amended by paragraph (7), is amended by adding at the end the 
     following new section:

     ``SEC. 5124. REGISTRATION BY DEALERS.

       ``Every dealer who is subject to the recordkeeping 
     requirements under section 5121 or 5122 shall register with 
     the Secretary such dealer's name or style, place of 
     residence, trade or business, and the place where such trade 
     or business is to be carried on. In the case of a firm or 
     company, the names of the several persons constituting the 
     same, and the places of residence, shall be so registered.''.
       (9) Section 7012 is amended by redesignating paragraphs (4) 
     and (5) as paragraphs (5) and (6), respectively, and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) For provisions relating to registration by dealers in 
     distilled spirits, wines, and beer, see section 5124.''.
       (10) 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.''.

       (11) 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).
       (12) Subpart D of part II of subchapter A of chapter 51 is 
     amended by adding at the end 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.''.

       (13) 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)'', and
       (C) by striking ``section 5122'' and inserting ``section 
     5122(c)''.
       (14) Subparagraph (A) of section 5010(c)(2) is amended by 
     striking ``section 5134'' and inserting ``section 5114''.
       (15) 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).''.
       (16) The text of section 5182 is amended to read as 
     follows:

``For provisions requiring recordkeeping by wholesale liquor dealers, 
              see section 5112, and by retail liquor dealers, see 
              section 5122.''.

       (17) Subsection (b) of section 5402 is amended by striking 
     ``section 5092'' and inserting ``section 5052(d)''.
       (18) Section 5671 is amended by striking ``or 5091''.
       (19)(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.
       (20)(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 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).
       (21) Subsection (c) of section 6071 is amended by striking 
     ``section 5142'' and inserting ``section 5732''.
       (22) 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, 2008, but shall not apply to 
     taxes imposed for periods before such date.

     SEC. 1126. 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, 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 political subdivision 
     thereof, or an agency of either, 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 
     political subdivision thereof, or an agency of either.
       ``(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) 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 distilled spirits credit determined under 
     section 5011(a).''.
       (c) Conforming Amendment.--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 September 30, 
     2005.

     SEC. 1127. QUARTERLY EXCISE TAX FILING FOR SMALL ALCOHOL 
                   EXCISE TAXPAYERS.

       (a) In General.--Subsection (d) of section 5061 (relating 
     to time for collecting tax on distilled spirits, wines, and 
     beer) is amended by redesignating paragraphs (4) and (5) as 
     paragraphs (5) and (6), respectively, and by inserting after 
     paragraph (3) the following new paragraph:
       ``(4) Taxpayers liable for taxes of not more than 
     $50,000.--
       ``(A) In general.--In the case of any taxpayer who 
     reasonably expects to be liable for not more than $50,000 in 
     taxes imposed with respect to distilled spirits, wines, and 
     beer under subparts A, C, and D and section 7652 for the 
     calendar year and who was liable for not more than $50,000 in 
     such taxes in the preceding calendar year, the last day for 
     the payment of tax on withdrawals, removals, and entries (and 
     articles brought into the United States from Puerto Rico) 
     under bond for deferred payment shall be the 14th day after 
     the last day of the calendar quarter during which the action 
     giving rise to the imposition of such tax occurs.

[[Page H7443]]

       ``(B) No application after limit exceeded.--Subparagraph 
     (A) shall not apply to any taxpayer for any portion of the 
     calendar year following the first date on which the aggregate 
     amount of tax due under subparts A, C, and D and section 7652 
     from such taxpayer during such calendar year exceeds $50,000, 
     and any tax under such subparts which has not been paid on 
     such date shall be due on the 14th day after the last day of 
     the semimonthly period in which such date occurs.
       ``(C) Calendar quarter.--For purposes of this paragraph, 
     the term `calendar quarter' means the three-month period 
     ending on March 31, June 30, September 30, or December 31.''.
       (b) Conforming Amendment.--Section 5061(d)(6), as 
     redesignated by subsection (a), is amended by striking 
     ``paragraph (4)'' and inserting ``paragraph (5)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to quarterly periods beginning on 
     and after January 1, 2006.
                       PART 5--SPORT EXCISE TAXES

     SEC. 1131. 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 pistol, revolver, or firearm described in 
     such section if manufactured, produced, or imported by a 
     person who manufactures, produces, and imports less than an 
     aggregate of 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 after September 30, 2005.
       (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.
                  Subtitle C--Miscellaneous Provisions

     SEC. 1141. 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 with respect to 
     motor fuel taxes;
       (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 to the President and 
     Congress 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) 6 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 as of the 
     close of September 30, 2009.

     SEC. 1142. 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, with respect to the 
     period beginning on the date of the enactment of this Act and 
     ending before 2016--
       (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;
       (E) consider a program that would exempt all or a portion 
     of gasoline or other motor fuels used in a State from the 
     Federal excise tax on such gasoline or other motor fuels if 
     such State elects not to receive all or a portion of Federal 
     transportation funding, including--
       (i) whether such State should be required to increase State 
     gasoline or other motor fuels taxes by the amount of the 
     decrease in the Federal excise tax on such gasoline or other 
     motor fuels;
       (ii) whether any Federal transportation funding should not 
     be reduced or eliminated for States participating in such 
     program; and
       (iii) whether there are any compliance problems related to 
     enforcement of Federal transportation-related excise taxes 
     under such program; and
       (F) study such other matters closely related to the 
     subjects described in the preceding subparagraphs as it may 
     deem appropriate.
       (2) 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 maintain 
     and 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.

[[Page H7444]]

       (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. 1143. 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 (13), by striking the 
     period at the end of paragraph (14) and inserting ``, or'', 
     and by adding at the end the following new paragraph:
       ``(15) qualified highway or surface freight transfer 
     facilities.''.
       (b) Qualified Highway or Surface Freight Transfer 
     Facilities.--Section 142 is amended by adding at the end the 
     following:
       ``(m) Qualified Highway or Surface Freight Transfer 
     Facilities.--
       ``(1) In general.--For purposes of subsection (a)(15), the 
     term `qualified highway or surface freight transfer 
     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),
       ``(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 title 23, United States Code (as so in 
     effect), or
       ``(C) any facility 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 so in effect).
       ``(2) National limitation on amount of tax-exempt financing 
     for facilities.--
       ``(A) National limitation.--The aggregate amount allocated 
     by the Secretary of Transportation under subparagraph (C) 
     shall not exceed $15,000,000,000.
       ``(B) Enforcement of national limitation.--An issue shall 
     not be treated as an issue described in subsection (a)(15) if 
     the aggregate face amount of bonds issued pursuant to such 
     issue for any qualified highway or surface freight transfer 
     facility (when added to the aggregate face amount of bonds 
     previously so issued for such facility) exceeds the amount 
     allocated to such facility under subparagraph (C).
       ``(C) Allocation by secretary of transportation.--The 
     Secretary of Transportation shall allocate the amount 
     described in subparagraph (A) among qualified highway or 
     surface freight transfer facilities in such manner as the 
     Secretary determines appropriate.
       ``(3) Expenditure of proceeds.--An issue shall not be 
     treated as an issue described in subsection (a)(15) unless at 
     least 95 percent of the net proceeds of the issue is expended 
     for qualified highway or surface freight transfer facilities 
     within the 5-year period beginning on the date of issuance. 
     If at least 95 percent of such net proceeds is not expended 
     within such 5-year period, an issue shall be treated as 
     continuing to meet the requirements of this paragraph if the 
     issuer uses all unspent proceeds of the issue to redeem bonds 
     of the issue within 90 days after the end of such 5-year 
     period. The Secretary, at the request of the issuer, may 
     extend such 5-year period if the issuer establishes that any 
     failure to meet such period is due to circumstances beyond 
     the control of the issuer.
       ``(4) Exception for current refunding bonds.--Paragraph (2) 
     shall not apply to any bond (or series of bonds) issued to 
     refund a bond issued under subsection (a)(15) if--
       ``(A) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       ``(B) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       ``(C) the refunded bond is redeemed not later than 90 days 
     after the date of the issuance of the refunding bond.
     For purposes of subparagraph (A), average maturity shall be 
     determined in accordance with section 147(b)(2)(A).''.
       (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 (14)'' and all that follows through the end of 
     the paragraph and inserting ``(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. 1144. 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 from the highway motor 
     fuels excise taxes, and, if such exemptions are technically 
     and administratively feasible, shall propose options for 
     implementing such exemptions for--
       (i) mobile machinery (as defined in section 4053(8) of the 
     Internal Revenue Code of 1986) whose nonpropulsive fuel use 
     exceeds 50 percent, and
       (ii) any highway vehicle which consumes fuel for both 
     transportation- and non-transportation-related equipment, 
     using a single motor,
       (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, 2007, 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. 1145. DIESEL FUEL TAX EVASION REPORT.

        Not later than 360 days after the date of the enactment of 
     this Act, the Commissioner of the Internal Revenue shall 
     report to the Committees on Finance and Environment and 
     Public Works of the Senate and the Committees on Ways and 
     Means and Transportation and Infrastructure of the House of 
     Representatives on--
       (1) the availability of new technologies, including 
     forensic or chemical molecular markers, that can be employed 
     to enhance collections of the excise tax on diesel fuel and 
     the plans of the Internal Revenue Service to employ such 
     technologies,
       (2) the design of a test to place forensic or chemical 
     molecular markers in any excluded liquid (as defined in 
     section 48.4081-1(b) of title 26, Code of Federal 
     Regulations),
       (3) the design of a test, in consultation with the 
     Department of Defense, to place forensic or chemical 
     molecular markers in all nonstrategic bulk fuel deliveries of 
     diesel fuel to the military, and
       (4) the design of a test to place forensic or chemical 
     molecular markers in all diesel fuel bound for export 
     utilizing the Gulf of Mexico.

     SEC. 1146. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL 
                   ESTATE INVESTMENT TRUST.

       (a) In General.--If a State owns all of the outstanding 
     stock of a corporation--
       (1) which is a real estate investment trust on the date of 
     the enactment of this Act,
       (2) which is a non-operating class III railroad, and
       (3) substantially all of the activities of which consist of 
     the ownership, leasing, and operation by such corporation of 
     facilities, equipment, and other property used by the 
     corporation or other persons for railroad transportation and 
     for economic development purposes for the benefit of the 
     State and its citizens, then, to the extent such activities 
     are of a type which are an essential governmental function 
     within the meaning of section 115 of the Internal Revenue 
     Code of 1986, income derived from such activities by the

[[Page H7445]]

     corporation shall be treated as accruing to the State for 
     purposes of section 115 of such Code.
       (b) Gain or Loss not Recognized on Conversion.--
     Notwithstanding section 337(d) of the Internal Revenue Code 
     of 1986--
       (1) no gain or loss shall be recognized under section 336 
     or 337 of such Code, and
       (2) no change in basis of the property of such corporation 
     shall occur, because of any change of status of a corporation 
     to a tax-exempt entity by reason of the application of 
     subsection (a).
       (c) Tax-Exempt Financing.--
       (1) In general.--Any obligation issued by a corporation 
     described in subsection (a) at least 95 percent of the net 
     proceeds (as defined in section 150(a) of the Internal 
     Revenue Code of 1986) of which are to be used to provide for 
     the acquisition, construction, or improvement of railroad 
     transportation infrastructure (including railroad terminal 
     facilities)--
       (A) shall be treated as a State or local bond (within the 
     meaning of section 103(c) of such Code), and
       (B) shall not be treated as a private activity bond (within 
     the meaning of section 103(b)(1) of such Code) solely by 
     reason of the ownership or use of such railroad 
     transportation infrastructure by the corporation.
       (2) No inference.--Except as provided in paragraph (1), 
     nothing in this subsection shall be construed to affect the 
     treatment of the private use of proceeds or property financed 
     with obligations issued by the corporation for purposes of 
     section 103 of the Internal Revenue Code of 1986 and part IV 
     of subchapter B of such Code.
       (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.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall apply on and after the date on which a State 
     becomes the owner of all of the outstanding stock of a 
     corporation described in subsection (a) through action of 
     such corporation's board of directors.
       (2) Exception.--This section shall not apply to any State 
     which--
       (A) becomes the owner of all of the voting stock of a 
     corporation described in subsection (a) after December 31, 
     2003, or
       (B) becomes the owner of all of the outstanding stock of a 
     corporation described in subsection (a) after December 31, 
     2006.

     SEC. 1147. LIMITATION ON TRANSFERS TO THE LEAKING UNDERGROUND 
                   STORAGE TANK TRUST FUND.

       (a) In General.--Section 9508 is amended by adding at the 
     end the following new subsection:
       ``(e) Limitation on Transfers to Leaking Underground 
     Storage Tank Trust Fund.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     amount may be appropriated to the Leaking Underground Storage 
     Tank Trust Fund on and after the date of any expenditure from 
     the Leaking Underground Storage Tank Trust Fund which is not 
     permitted by this section. The determination of whether an 
     expenditure is so permitted shall be made without regard to--
       ``(A) any provision of law which is not contained or 
     referenced in this title or in a revenue Act, and
       ``(B) whether such provision of law is a subsequently 
     enacted provision or directly or indirectly seeks to waive 
     the application of this paragraph.
       ``(2) Exception for prior obligations.--Paragraph (1) shall 
     not apply to any expenditure to liquidate any contract 
     entered into (or for any amount otherwise obligated) before 
     October 1, 2011, in accordance with the provisions of this 
     section.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.
           Subtitle D--Highway-Related Technical Corrections

     SEC. 1151. HIGHWAY-RELATED TECHNICAL CORRECTIONS.

       (a) Amendments Related to Section 301 of the American Jobs 
     Creation Act of 2004.--Section 6427 is amended--
       (1) by striking subsection (f), and
       (2) by striking subsection (o) and redesignating subsection 
     (p) as subsection (o).
       (b) Amendments Related to Section 853 of the American Jobs 
     Creation Act of 2004.--
       (1) Subparagraph (C) of section 4081(a)(2) is amended by 
     striking ``for use in commercial aviation'' and inserting 
     ``for use in commercial aviation by a person registered for 
     such use under section 4101''.
       (2) So much of paragraph (2) of section 4081(d) as precedes 
     subparagraph (A) is amended to read as follows:
       ``(2) Aviation fuels.--The rates of tax specified in 
     clauses (ii) and (iv) of subsection (a)(2)(A) shall be 4.3 
     cents per gallon--''.
       (3) Section 6421(f)(2) is amended--
       (A) by striking ``noncommercial aviation (as defined in 
     section 4041(c)(2))'' in subparagraph (A) and inserting 
     ``aviation which is not commercial aviation (as defined in 
     section 4083(b))'', and
       (B) by striking ``aviation which is not noncommercial 
     aviation'' in subparagraph (B) and inserting ``commercial 
     aviation''.
       (c) Amendment Related to Section 9005 of the Transportation 
     Equity Act for the 21st Century.--The last sentence of 
     paragraph (2) of section 9504(b) is amended by striking 
     ``subparagraph (B)'', and inserting ``subparagraph (C)''.
       (d) Amendment Related to Section 1306 of the Energy Policy 
     Act of 2005.--
       (1) Subsection (b) of section 1306 of the Energy Tax 
     Incentives Act of 2005 is amended by striking 
     ``Transportation Equity Act: A Legacy for Users'' and 
     inserting ``Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users''.
       (2) If the Energy Policy Act of 2005 is enacted before the 
     date of the enactment of this Act, for purposes of executing 
     any amendments made by the Energy Policy Act of 2005 to 
     section 38(b) of the Internal Revenue Code of 1986, the 
     amendments made by section 1126(b) of this Act shall be 
     treated as having been executed before such amendments made 
     by the Energy Policy Act of 2005.
       (e) Clerical Amendments.--
       (1) Subparagraph (A) of section 9504(b)(2) is amended by 
     striking ``the Act entitled `An Act to provide that the 
     United States shall aid the States in fish restoration and 
     management projects, and for other purposes', approved August 
     9, 1950'' and inserting ``the Dingell-Johnson Sport Fish 
     Restoration Act''.
       (2) Sections 6426(d)(2)(F) and 4041(a)(2)(B)(ii) are both 
     amended by striking ``section 29(c)(3)'' and inserting 
     ``section 45K(c)(3)''.
       (f) Effective Dates.--
       (1) American jobs creation act of 2004.--The amendments 
     made by subsections (a) and (b) shall take effect as if 
     included in the provisions of the American Jobs Creation Act 
     of 2004 to which they relate.
       (2) Transportation equity act for the 21st century.--The 
     amendment made by subsection (c) shall take effect as if 
     included in the provision of the Transportation Equity Act 
     for the 21st Century to which it relates.
       (3) Energy policy act of 2005.--The amendments made by 
     subsections (d)(1) and (e)(2) shall take effect as if 
     included in the provision of the Energy Tax Incentives Act of 
     2005 to which they relate.
                   Subtitle E--Preventing Fuel Fraud

     SEC. 1161. TREATMENT OF KEROSENE FOR USE IN AVIATION.

       (a) All Kerosene Taxed at Highest Rate.--
       (1) In general.--Section 4081(a)(2)(A) (relating to rates 
     of tax) is amended by adding ``and'' at the end of clause 
     (ii), by striking ``, and'' at the end of clause (iii) and 
     inserting a period, and by striking clause (iv).
       (2) Exception for use in aviation.--Subparagraph (C) of 
     section 4081(a)(2) is amended to read as follows:
       ``(C) Taxes imposed on fuel used in aviation.--In the case 
     of kerosene which is removed from any refinery or terminal 
     directly into the fuel tank of an aircraft for use in 
     aviation, the rate of tax under subparagraph (A)(iii) shall 
     be--
       ``(i) in the case of use for commercial aviation by a 
     person registered for such use under section 4101, 4.3 cents 
     per gallon, and
       ``(ii) in the case of use for aviation not described in 
     clause (i), 21.8 cents per gallon.''.
       (3) Applicable rate in case of certain refueler trucks, 
     tankers, and tank wagons.--Section 4081(a)(3) (relating to 
     certain refueler trucks, tankers, and tank wagons treated as 
     terminals) is amended--
       (A) by striking ``a secured area of'' in subparagraph 
     (A)(i), and
       (B) by adding at the end the following new subparagraph:
       ``(D) Applicable rate.--For purposes of paragraph (2)(C), 
     in the case of any kerosene treated as removed from a 
     terminal by reason of this paragraph--
       ``(i) the rate of tax specified in paragraph (2)(C)(i) in 
     the case of use described in such paragraph shall apply if 
     such terminal is located within a secured area of an airport, 
     and
       ``(ii) the rate of tax specified in paragraph (2)(C)(ii) 
     shall apply in all other cases.''.
       (4) Conforming amendments.--
       (A) Sections 4081(a)(3)(A) and 4082(b) are amended by 
     striking ``aviation-grade'' each place it appears.
       (B) Section 4081(a)(4) is amended by striking ``paragraph 
     (2)(C)'' and inserting ``paragraph (2)(C)(i)''.
       (C) The heading for paragraph (4) of section 4081(a) is 
     amended by striking ``aviation-grade''.
       (D) Section 4081(d)(2) is amended by striking so much as 
     precedes subparagraph (A) and inserting the following:
       ``(2) Aviation fuels.--The rates of tax specified in 
     subsections (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 
     cents per gallon--''.
       (E) Subsection (e) of section 4082 is amended--
       (i) by striking ``aviation-grade'',
       (ii) by striking ``section 4081(a)(2)(A)(iv)'' and 
     inserting ``section 4081(a)(2)(A)(iii)'',
       (iii) by adding at the end the following new sentence: 
     ``For purposes of this subsection, any removal described in 
     section 4081(a)(3)(A) shall be treated as a removal from a 
     terminal but only if such terminal is located within a secure 
     area of an airport.'', and
       (iv) by striking ``Aviation-grade Kerosene'' in the heading 
     thereof and inserting ``Kerosene Removed Into an Aircraft''.
       (b) Reduced Rate for Use of Certain Liquids in Aviation.--
       (1) In general.--Subsection (c) of section 4041 (relating 
     to imposition of tax) is amended--
       (A) by striking ``aviation-grade kerosene'' in paragraph 
     (1) and inserting ``any liquid for use as a fuel other than 
     aviation gasoline'',
       (B) by striking ``aviation-grade kerosene'' in paragraph 
     (2) and inserting ``liquid for use as a fuel other than 
     aviation gasoline'',
       (C) by striking paragraph (3) and inserting the following 
     new paragraph:

[[Page H7446]]

       ``(3) Rate of tax.--The rate of tax imposed by this 
     subsection shall be 21.8 cents per gallon (4.3 cents per 
     gallon with respect to any sale or use for commercial 
     aviation).'', and
       (D) by striking ``Aviation-grade Kerosene'' in the heading 
     thereof and inserting ``Certain Liquids Used as a Fuel in 
     Aviation''.
       (2) Partial refund of full rate.--
       (A) In general.--Paragraph (2) of section 6427(l) (relating 
     to nontaxable uses of diesel fuel, kerosene and aviation 
     fuel) is amended to read as follows:
       ``(2) Nontaxable use.--For purposes of this subsection, the 
     term `nontaxable use' means any use which is exempt from the 
     tax imposed by section 4041(a)(1) other than by reason of a 
     prior imposition of tax.''.
       (B) Refunds for noncommercial aviation.--Section 6427(l) 
     (relating to nontaxable uses of diesel fuel, kerosene and 
     aviation fuel) is amended by redesignating paragraph (5) as 
     paragraph (6) and by inserting after paragraph (4) the 
     following new paragraph:
       ``(5) Refunds for kerosene used in noncommercial 
     aviation.--
       ``(A) In general.--In the case of kerosene used in aviation 
     not described in paragraph (4)(A) (other than any use which 
     is exempt from the tax imposed by section 4041(c) other than 
     by reason of a prior imposition of tax), 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)(iii) as does not exceed the rate specified in 
     section 4081(a)(2)(C)(ii).
       ``(B) Payment to ultimate, registered vendor.--The amount 
     which would be paid under paragraph (1) with respect to any 
     kerosene shall be paid only to the ultimate vendor of such 
     kerosene. A payment shall be made to such vendor 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).''.
       (3) Conforming amendments.--
       (A) Section 4041(a)(1)(B) is amended by striking the last 
     sentence.
       (B) The heading for subsection (l) of section 6427 is 
     amended by striking ``, Kerosene and Aviation Fuel'' and 
     inserting ``and Kerosene''.
       (C) Section 4082(d)(2)(B) is amended by striking ``section 
     6427(l)(5)(B)'' and inserting ``section 6427(l)(6)(B)''.
       (D) Section 6427(i)(4)(A) is amended--
       (i) by striking ``paragraph (4)(B) or (5)'' both places it 
     appears and inserting ``paragraph (4)(B), (5), or (6)'', and
       (ii) by striking ``subsection (b)(4) and subsection 
     (l)(5)'' in the last sentence and inserting ``subsections 
     (b)(4), (l)(5), and (l)(6)''.
       (E) Paragraph (4) of section 6427(l) is amended--
       (i) by striking ``aviation-grade'' in subparagraph (A),
       (ii) by striking ``section 4081(a)(2)(A)(iv)'' and 
     inserting ``section 4081(a)(2)(iii)'',
       (iii) by striking ``aviation-grade kerosene'' in 
     subparagraph (B) and inserting ``kerosene used in commercial 
     aviation as described in subparagraph (A)'', and
       (iv) by striking ``aviation-grade kerosene'' in the heading 
     thereof and inserting ``kerosene used in commercial 
     aviation''.
       (F) Section 6427(l)(6)(B), as redesignated by paragraph 
     (2)(B), is amended by striking ``aviation-grade kerosene'' 
     and inserting ``kerosene used in aviation''.
       (c) Transfers From Highway Trust Fund of Taxes on Fuels 
     Used in Aviation to Airport and Airway Trust Fund.--
       (1) In general.--Section 9503(c) (relating to expenditures 
     from Highway Trust Fund) is amended by adding at the end the 
     following new paragraph:
       ``(7) Transfers from the trust fund for certain aviation 
     fuel taxes.--The Secretary shall pay at least monthly from 
     the Highway Trust Fund into the Airport and Airway Trust Fund 
     amounts (as determined by the Secretary) equivalent to the 
     taxes received on or after October 1, 2005, and before 
     October 1, 2011, under section 4081 with respect to so much 
     of the rate of tax as does not exceed--
       ``(A) 4.3 cents per gallon of kerosene with respect to 
     which a payment has been made by the Secretary under section 
     6427(l)(4), and
       ``(B) 21.8 cents per gallon of kerosene with respect to 
     which a payment has been made by the Secretary under section 
     6427(l)(5).

     Transfers under the preceding sentence shall be made on the 
     basis of estimates by the Secretary, and proper adjustments 
     shall be made in the amounts subsequently transferred to the 
     extent prior estimates were in excess of or less than the 
     amounts required to be transferred. Any amount allowed as a 
     credit under section 34 by reason of paragraph (4) or (5) of 
     section 6427(l) shall be treated for purposes of 
     subparagraphs (A) and (B) as a payment made by the Secretary 
     under such paragraph.''.
       (2) Conforming amendments.--
       (A) Section 9502(a) is amended by striking ``appropriated 
     or credited to the Airport and Airway Trust Fund as provided 
     in this section or section 9602(b)'' and inserting 
     ``appropriated, credited, or paid into the Airport and Airway 
     Trust Fund as provided in this section, section 9503(c)(7), 
     or section 9602(b)''.
       (B) Section 9502(b)(1) is amended--
       (i) by striking ``subsections (c) and (e) of section 4041'' 
     in subparagraph (A) and inserting ``section 4041(c)'', and
       (ii) by striking ``and aviation-grade kerosene'' in 
     subparagraph (C) and inserting ``and kerosene to the extent 
     attributable to the rate specified in section 
     4081(a)(2)(C)''.
       (C) Section 9503(b) is amended by striking paragraph (3).
       (d) Certain Refunds Not Transferred From Airport and Airway 
     Trust Fund.--
       (1) Section 9502(d)(2) (relating to transfers from Airport 
     and Airway Trust Fund on account of certain refunds) is 
     amended by inserting ``(other than subsections (l)(4) and 
     (l)(5) thereof)'' after ``or 6427 (relating to fuels not used 
     for taxable purposes)''.
       (2) The text of section 9502(d)(3) (relating to transfers 
     from Airport and Airway Trust Fund on account of certain 
     section 34 credits) is amended by inserting ``(other than 
     payments made by reason of paragraph (4) or (5) of section 
     6427(l))'' after ``section 34''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to fuels or liquids removed, entered, or sold 
     after September 30, 2005.

     SEC. 1162. REPEAL OF ULTIMATE VENDOR REFUND CLAIMS WITH 
                   RESPECT TO FARMING.

       (a) In General.--Subparagraph (A) of section 6427(l)(6) 
     (relating to registered vendors to administer claims for 
     refund of diesel fuel or kerosene sold to farmers and State 
     and local governments), as redesignated by section 1161, 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) Conforming Amendment.--The heading of paragraph (6) of 
     section 6427(l), as so redesignated, is amended by striking 
     ``farmers and''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales after September 30, 2005.

     SEC. 1163. REFUNDS OF EXCISE TAXES ON EXEMPT SALES OF FUEL BY 
                   CREDIT CARD.

       (a) Registration of Person Extending Credit on Certain 
     Exempt Sales of Fuel.--Section 4101(a) (relating to 
     registration) is amended by adding at the end the following 
     new paragraph:
       ``(4) Registration of persons extending credit on certain 
     exempt sales of fuel.--The Secretary shall require 
     registration by any person which--
       ``(A) extends credit by credit card to any ultimate 
     purchaser described in subparagraph (C) or (D) of section 
     6416(b)(2) for the purchase of taxable fuel upon which tax 
     has been imposed under section 4041 or 4081, and
       ``(B) does not collect the amount of such tax from such 
     ultimate purchaser.''.
       (b) Refunds of Tax on Gasoline.--
       (1) In general.--Paragraph (4) of section 6416(a) (relating 
     to condition to allowance) is amended--
       (A) by inserting ``except as provided in subparagraph 
     (B),'' after ``For purposes of this subsection,'' in 
     subparagraph (A),
       (B) by redesignating subparagraph (B) as subparagraph (C) 
     and by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Credit card issuer.--For purposes of this subsection, 
     if the purchase of gasoline described in subparagraph (A) 
     (determined without regard to the registration status of the 
     ultimate vendor) is made by means of a credit card issued to 
     the ultimate purchaser, paragraph (1) shall not apply and the 
     person extending the credit to the ultimate purchaser shall 
     be treated as the person (and the only person) who paid the 
     tax, but only if such person--
       ``(i) is registered under section 4101, and
       ``(ii) has established, under regulations prescribed by the 
     Secretary, that such person--

       ``(I) has not collected the amount of the tax from the 
     person who purchased such article, or
       ``(II) has obtained the written consent from the ultimate 
     purchaser to the allowance of the credit or refund, and

       ``(iii) has so established that such person--

       ``(I) has repaid or agreed to repay the amount of the tax 
     to the ultimate vendor,
       ``(II) has obtained the written consent of the ultimate 
     vendor to the allowance of the credit or refund, or
       ``(III) has otherwise made arrangements which directly or 
     indirectly provides the ultimate vendor with reimbursement of 
     such tax.

     If clause (i), (ii), or (iii) is not met by such person 
     extending the credit to the ultimate purchaser, then such 
     person shall collect an amount equal to the tax from the 
     ultimate purchaser and only such ultimate purchaser may claim 
     such credit or payment.'',
       (C) by striking ``subparagraph (A)'' in subparagraph (C), 
     as redesignated by paragraph (2), and inserting 
     ``subparagraph (A) or (B)'',
       (D) by inserting ``or credit card issuer'' after ``vendor'' 
     in subparagraph (C), as so redesignated, and
       (E) by inserting ``or credit card issuer'' after ``vendor'' 
     in the heading thereof.
       (2) Conforming amendment.--Section 6416(b)(2) is amended by 
     adding at the end the following new sentence: ``Subparagraphs 
     (C) and (D) shall not apply in the case of any tax imposed on 
     gasoline under section 4081 if the requirements of subsection 
     (a)(4) are not met.''.
       (c) Diesel Fuel or Kerosene.--Paragraph (6) of section 
     6427(l) (relating to nontaxable uses of diesel fuel and 
     kerosene), as redesignated by section 1161, is amended--
       (1) by striking ``The amount'' in subparagraph (C) and 
     inserting ``Except as provided in subparagraph (D), the 
     amount'', and
       (2) by adding at the end the following new subparagraph:
       ``(D) Credit card issuer.--For purposes of this paragraph, 
     if the purchase of any fuel described in subparagraph (A) 
     (determined without regard to the registration status of the 
     ultimate vendor) is made by means of a credit card issued to 
     the ultimate purchaser, the Secretary shall pay to the person 
     extending the credit to the ultimate purchaser the amount 
     which would have been paid under paragraph (1) (but for 
     subparagraph (A)), but only if such person meets the 
     requirements of clauses (i), (ii), and (iii) of section 
     6416(a)(4)(B). If such clause (i),

[[Page H7447]]

     (ii), or (iii) is not met by such person extending the credit 
     to the ultimate purchaser, then such person shall collect an 
     amount equal to the tax from the ultimate purchaser and only 
     such ultimate purchaser may claim such amount.''.
       (d) Conforming Penalty Amendments.--
       (1) Section 6206 (relating to special rules applicable to 
     excessive claims under sections 6420, 6421, and 6427) is 
     amended--
       (A) by striking ``Any portion'' in the first sentence and 
     inserting ``Any portion of a refund made under section 
     6416(a)(4) and any portion'',
       (B) by striking ``payments under sections 6420'' in the 
     first sentence and inserting ``refunds under section 
     6416(a)(4) and payments under sections 6420'',
       (C) by striking ``section 6420'' in the second sentence and 
     inserting ``section 6416(a)(4), 6420'', and
       (D) by striking ``SECTIONS 6420, 6421, AND 6427'' in the 
     heading thereof and inserting ``CERTAIN SECTIONS''.
       (2) Section 6675(a) is amended by inserting ``section 
     6416(a)(4) (relating to certain sales of gasoline),'' after 
     ``made under''.
       (3) Section 6675(b)(1) is amended by inserting 
     ``6416(a)(4),'' after ``under section''.
       (4) The item relating to section 6206 in the table of 
     sections for subchapter A of chapter 63 is amended by 
     striking ``sections 6420, 6421, and 6427'' and inserting 
     ``certain sections''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to sales after December 31, 2005.

     SEC. 1164. REREGISTRATION IN EVENT OF CHANGE IN OWNERSHIP.

       (a) In General.--Section 4101(a) (relating to registration) 
     is amended by adding at the end the following new paragraph:
       ``(4) Reregistration in event of change in ownership.--
     Under regulations prescribed by the Secretary, a person 
     (other than a corporation the stock of which is regularly 
     traded on an established securities market) shall be required 
     to reregister under this section if after a transaction (or 
     series of related transactions) more than 50 percent of 
     ownership interests in, or assets of, such person are held by 
     persons other than persons (or persons related thereto) who 
     held more than 50 percent of such interests or assets before 
     the transaction (or series of related transactions).''.
       (b) Conforming Amendments.--
       (1) Civil penalty.--Section 6719 (relating to failure to 
     register) is amended--
       (A) by inserting ``or reregister'' after ``register'' each 
     place it appears,
       (B) by inserting ``or Reregister'' after ``Register'' in 
     the heading for subsection (a), and
       (C) by inserting ``OR REREGISTER'' after ``REGISTER'' in 
     the heading thereof.
       (2) Criminal penalty.--Section 7232 (relating to failure to 
     register under section 4101, false representations of 
     registration status, etc.) is amended--
       (A) by inserting ``or reregister'' after ``register'',
       (B) by inserting ``or reregistration'' after 
     ``registration'', and
       (C) by inserting ``OR REREGISTER'' after ``REGISTER'' in 
     the heading thereof.
       (3) Additional civil penalty.--Section 7272 (relating to 
     penalty for failure to register) is amended--
       (A) by inserting ``or reregister'' after ``failure to 
     register'' in subsection (a),
       (B) by inserting ``OR REREGISTER'' after ``REGISTER'' in 
     the heading thereof.
       (4) Clerical amendments.--The item relating to section 6719 
     in the table of sections for part I of subchapter B of 
     chapter 68, the item relating to section 7232 in the table of 
     sections for part II of subchapter A of chapter 75, and the 
     item relating to section 7272 in the table of sections for 
     subchapter B of chapter 75 are each amended by inserting ``or 
     reregister'' after ``register''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions, or failures to act, after the date of 
     the enactment of this Act.

     SEC. 1165. 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) Transmission of data.--Pursuant to paragraph (2), not 
     later than 1 year after the date of enactment of this 
     paragraph, the Secretary of Homeland Security, after 
     consultation with the Secretary of the Treasury, shall 
     establish an electronic data interchange system through which 
     the United States Customs and Border Protection shall 
     transmit to the Internal Revenue Service information 
     pertaining to cargoes of any taxable fuel (as defined in 
     section 4083 of the Internal Revenue Code of 1986) that the 
     United States Customs and Border Protection has obtained 
     electronically under its regulations adopted in accordance 
     with paragraph (1). For this purpose, not later than 1 year 
     after the date of enactment of this paragraph, all filers of 
     required cargo information for such taxable fuels (as so 
     defined) must provide such information to the United States 
     Customs and Border Protection through such electronic data 
     interchange system.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 1166. TREATMENT OF DEEP-DRAFT VESSELS.

       (a) In General.--On and after the date of the enactment of 
     this Act, the Secretary of the Treasury shall require that a 
     vessel described in section 4042(c)(1) of the Internal 
     Revenue Code of 1986 be considered a vessel for purposes of 
     the registration of the operator of such vessel under section 
     4101 of such Code, unless such operator uses such vessel 
     exclusively for purposes of the entry of taxable fuel.
       (b) Exemption for Domestic Bulk Transfers by Deep-Draft 
     Vessels.--
       (1) In general.--Subparagraph (B) of section 4081(a)(1) 
     (relating to tax on removal, entry, or sale) is amended to 
     read as follows:
       ``(B) Exemption for bulk transfers to registered terminals 
     or refineries.--
       ``(i) In general.--The tax imposed by this paragraph shall 
     not apply to any removal or entry of a taxable fuel 
     transferred in bulk by pipeline or vessel to a terminal or 
     refinery if the person removing or entering the taxable fuel, 
     the operator of such pipeline or vessel (except as provided 
     in clause (ii)), and the operator of such terminal or 
     refinery are registered under section 4101.
       ``(ii) Nonapplication of registration to vessel operators 
     entering by deep-draft vessel.--For purposes of clause (i), a 
     vessel operator is not required to be registered with respect 
     to the entry of a taxable fuel transferred in bulk by a 
     vessel described in section 4042(c)(1).''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect on the date of the enactment of this Act.

     SEC. 1167. PENALTY WITH RESPECT TO CERTAIN ADULTERATED FUELS.

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

     ``SEC. 6720A. PENALTY WITH RESPECT TO CERTAIN ADULTERATED 
                   FUELS.

       ``(a) In General.--Any person who knowingly transfers for 
     resale, sells for resale, or holds out for resale any liquid 
     for use in a diesel-powered highway vehicle or a diesel-
     powered train which does not meet applicable EPA regulations 
     (as defined in section 45H(c)(3)), shall pay a penalty of 
     $10,000 for each such transfer, sale, or holding out for 
     resale, in addition to the tax on such liquid (if any).
       ``(b) Penalty in the Case of Retailers.--Any person who 
     knowingly holds out for sale (other than for resale) any 
     liquid described in subsection (a), shall pay a penalty of 
     $10,000 for each such holding out for sale, in addition to 
     the tax on such liquid (if any).''.
       (b) Dedication of Revenue.--Paragraph (5) of section 
     9503(b) (relating to certain penalties) is amended by 
     inserting ``6720A,'' after ``6719,''.
       (c) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6720A. Penalty with respect to certain adulterated fuels.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to any transfer, sale, or holding out for sale or 
     resale occurring after the date of the enactment of this Act.
       And the Senate agree to the same.
     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill (except title X) and the 
     Senate amendment (except title V), and modifications 
     committed to conference:
     Don Young,
     Thomas E. Petri,
     Sherwood Boehlert,
     Howard Coble,
     John J. Duncan, Jr.,
     John L. Mica,
     Pete Hoekstra,
     Steven C. LaTourette,
     Spencer Bachus,
     Richard H. Baker,
     Gary G. Miller,
     Robin Hayes,
     Rob Simmons,
     Henry E. Brown, Jr.
     Sam Graves,
     Bill Shuster,
     John Boozman,
     James L. Oberstar,
     Nick Rahall,
     Peter A. DeFazio,
     Jerry F. Costello,
     Eleanor Holmes Norton,
     Jerrold Nadler,
     Robert Menendez,
     Corrine Brown,
     Bob Filner,
     Eddie Bernice Johnson,
     Gene Taylor,
     Juanita Millender-McDonald,
     Elijah E. Cummings,
     Earl Blumenauer,
     Ellen O. Tauscher,
     From the Committee on the Budget, for consideration of secs. 
     8001-8003 of the House bill, and title III of the Senate 
     amendment, and modifications committed to conference:
     Jim Nussle,
     Mario Diaz-Balart,
     John Spratt,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 1118, 1605, 1809, 3018, and 3030 of 
     the House bill, and secs. 1304, 1819, 6013, 6031, 6038, and 
     7603 of the Senate amendment, and modifications committed to 
     conference:
     Ric Keller,
     John Barrow,
     From the Committee on Energy and Commerce, for consideration 
     of provisions in the House bill and Senate amendment relating 
     to Clean Air Act provisions of transportation planning 
     contained in secs. 6001 and 6006 of the House bill, and secs. 
     6005 and 6006 of the Senate amendment; and secs. 1210, 1824, 
     1833, 5203, and 6008 of the House bill, and secs. 1501, 1511, 
     1522, 1610-1619, 1622, 4001, 4002, 6016, 6023, 7218, 7223, 
     7251, 7252, 7256-7262, 7324, 7381, 7382, and 7384 of the 
     Senate amendment, and modifications committed to conference:
     Joe Barton,
     Chip Pickering,
     John D. Dingell,
     From the Committee on Government Reform, for consideration of 
     sec. 4205 of the

[[Page H7448]]

     House bill, and sec. 2101 of the Senate amendment, and 
     modifications committed to conference:
     Tom Davis,
     Todd R. Platts,
     From the Committee on Homeland Security, for consideration of 
     secs. 1834, 6027, 7324, and 7325 of the Senate amendment, and 
     modifications committed to conference:
     Chris Cox,
     Daniel E. Lungren,
     Bennie G. Thompson,
     From the Committee on the Judiciary, for consideration of 
     secs. 1211, 1605, 1812, 1832, 2013, 2017, 4105, 4201, 4202, 
     4214, 7018-7020, and 7023 of the House bill, and secs. 1410, 
     1512, 1513, 6006, 6029, 7108, 7113, 7115, 7338, 7340, 7343, 
     7345, 7362, 7363, 7406, 7407, and 7413 of the Senate 
     amendment, and modifications committed to conference:
     Lamar Smith,
     John Conyers,
     From the Committee on Resources, for consideration of secs. 
     1119, 3021, 6002, and 6003 of the House bill, and secs. 1501, 
     1502, 1505, 1511, 1514, 1601, 1603, 6040, and 7501-7518 of 
     the Senate amendment, and modifications committed to 
     conference:
     Greg Walden,
     Ron Kind,
     From the Committee on Rules, for consideration of secs. 8004 
     and 8005 of the House bill, and modifications committed to 
     conference:
     David Dreier,
     Shelley Moore Capito,
     Jim McGovern,
     From the Committee on Science, for consideration of secs. 
     2010, 3013, 3015, 3034, 3039, 3041, 4112, and title V of the 
     House bill, and title II and secs. 6014, 6015, 6036, 7118, 
     7212, 7214, 7361, and 7370 of the Senate amendment, and 
     modifications committed to conference:
     Vernon J. Ehlers,
     David Reichert,
     Bart Gordon,
     From the Committee on Ways and Means, for consideration of 
     title X of the House bill, and title V of the Senate 
     amendment, and modifications committed to conference:
     William M. Thomas,
     Jim McCrery,
     For consideration of the House bill and Senate amendment, and 
     modifications committed to conference:
     Tom DeLay
                                Managers on the Part of the House.

     James M. Inhofe,
     John Warner,
     Kit Bond,
     George V. Voinovich,
     Lincoln Chafee,
     Lisa Murkowski,
     John Thune,
     Jim DeMint,
     Johnny Isakson,
     David Vitter,
     Chuck Grassley,
     Orrin Hatch,
     Richard Shelby,
     Wayne Allard,
     Ted Stevens,
     Trent Lott,
     Jim Jeffords,
     Max Baucus,
     Joe Lieberman,
     Barbara Boxer,
     Tom Carper,
     Hillary Rodham Clinton,
     Frank R. Lautenberg,
     Barack Obama,
     Ken T. Conrad,
     Daniel K. Inouye,
     Jay Rockefeller,
      Paul Sarbanes,
     Jack Reed,
     Tim Johnson,
                               Managers on the Part of the Senate.

      JOINT EXPLANATORY KSTATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3), to authorize 
     funds for Federal-aid highways, highway safety programs, and 
     transit programs, and for other purposes, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The Senate amendment to the text of the bill struck all of 
     the House bill after the enacting clause and inserted a 
     substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The difference between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                     TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations of Programs


               sec. 1101. authorization of appropriations

     House Bill
       Sec. 1101.
       Subsection (a) authorizes funds out of the Highway Trust 
     Fund (other than the Mass Transit Account) for the following 
     highway programs: Interstate Maintenance Program, National 
     Highway System, Bridge Program, Highway Safety Improvements 
     Program, Surface Transportation Program, Congestion 
     Mitigation and Air Quality Improvement Program, Appalachian 
     Development Highway System Program, Recreational Trails 
     Program, Federal Lands Highways Program, National Corridor 
     Infrastructure Improvement Program, Coordinated Border 
     Infrastructure Program, Projects of National and Regional 
     Significance Program, Construction of Ferry Boats and Ferry 
     Terminal Facilities, National Scenic Byways Program, 
     Congestion Pricing Pilot Program, Deployment of 511 Traveler 
     Information Program, High Priority Projects Program, Freight 
     Intermodal Connector Program, High Risk Rural Road Safety 
     Improvement Program, Highway Use Tax Evasion Program, 
     Pedestrian and Cyclist Equity, Dedicated Truck Lanes, 
     Highways for LIFE Program, and Commonwealth of Puerto Rico 
     Program.
       Subsection (b) continues the disadvantaged business 
     enterprise (DBE) program with minor changes. The Committee 
     finds there is a continuing compelling need for the DBE 
     program. In enacting TEA 21 in 1998, Congress compiled an 
     extensive record on the effects of discrimination in 
     transportation contracting. Much of this information remains 
     valid today. We agree with those courts that have observed 
     that evidence concerning the exclusion of disadvantaged 
     groups remains relevant over a considerable period of time. 
     The Committee has relied on the information that Congress 
     used in 1998 in finding a continuing compelling need for the 
     DBE program.
       The Committee has also taken notice of data about the 
     period between 1998 and today. The data demonstrates the 
     continuing need for the program, as DBEs are still not able 
     to compete on the same basis as other businesses. First, the 
     regulation, found constitutional in a series of recent court 
     rulings, tells recipients to set overall goals. Under the 
     rules, recipients may set DBE contract goals only for that 
     portion of the overall goal that cannot be achieved by 
     completely race-neutral means. Highway and transit program 
     data for 2000-2002 shows that the overwhelming majority of 
     recipients have to set DBE contract goals to achieve all or 
     part of their overall goals. Unfortunately, race-neutral 
     means alone cannot overcome the persisting effects of 
     discrimination.
       Second, in several States for which DOT has comparative 
     2002 data, participation by minority- and women-owned 
     businesses in State-funded highway contracts to which no 
     contract goals applied fell well short both of DBE overall 
     goals and DBE participation in federally-assisted contracts. 
     If states are to ensure equal opportunity for DBEs, contract 
     goal programs remain essential. Third, DOT provided 15 
     detailed studies from states and cities that found 
     disparities between the availability and utilization of 
     minority- and women-owned businesses in government 
     contracting. The courts agree that it is fair to make an 
     inference of discriminatory exclusion from such disparities.
     Senate Bill
       Sec. 1101.
       This section authorizes sums out of the Highway Trust Fund 
     (other than Mass Transit Account) for the Interstate 
     Maintenance Program, National Highway System, Bridge Program, 
     Surface Transportation Program, Congestion Mitigation and Air 
     Quality Improvement Program, Highway Safety Improvement 
     Program, Appalachian Development Highway System Program, 
     Recreational Trails Program, Federal Lands Highway Program, 
     Multi-State Corridor Planning Program, Border, Planning, 
     Operations and Technology Program, National Scenic Byways 
     Program, Infrastructure Performance and Maintenance Program, 
     Construction of Ferry Boats and Ferry Terminal Facilities, 
     Puerto Rico Highway Program, Public-Private Partnerships 
     Pilot Program, Denali Access System, Delta Region 
     Transportation Development Program, and Intermodal Passenger 
     Facilities.
       The authorizing amounts to be appropriated are as follows:
       Interstate Maintenance Program: $5,799,188,140 for fiscal 
     year 2005, $6,032,059,334 for fiscal year 2006, 
     $6,049,378,729 for fiscal year 2007, $6,351,069,528 for 
     fiscal year 2008, and $6,443,591,248 for fiscal year 2009
       National Highway System: $7,054,146,316 for fiscal year 
     2005, $7,333,629,462 for fiscal year 2006, $7,354,650,712 for 
     fiscal year 2007, $7,720,825,041 for fiscal year 2008, and 
     $7,833,068,496 for fiscal year 2009
       Bridge Program: $4,970,732,691 for fiscal year 2005, 
     $5,157,180,500 for fiscal year 2006, $5,141,987,920 for 
     fiscal year 2007, $5,429,922,039 for fiscal year 2008, and 
     $5,509,052,458 for fiscal year 2009
       Surface Transportation: $7,318,023,129 for fiscal year 
     2005, $7,597,631,986 for fiscal year 2006, $7,619,446,491 for 
     fiscal year 2007, $7,999,438,719 for fiscal year 2008, and 
     $8,116,064,782 for fiscal year 2009
       Congestion Mitigation and Air Quality Improvement: 
     $1,979,088,016 for fiscal year 2005, $2,049,058,323 for 
     fiscal year 2006, $2,054,941,629 for fiscal year 2007, 
     $2,157,424,382 for fiscal year 2008, and $2,188,954,810 for 
     fiscal year 2009
       Highway Safety Improvement Program: $1,196,657,870 for 
     fiscal year 2005, $1,234,248,870 for fiscal year 2006, 
     $1,246,818,516 for fiscal year 2007, $1,308,999,063 for 
     fiscal year 2008, and $1,328,233,842 for fiscal year 2009
       Appalachian Development Highway System Program: 
     $532,518,499 for fiscal years 2005 through 2009
       Recreational Trails Program: $54,154,424 for fiscal years 
     2005 through 2009
       Federal Lands Highway Program Indian Reservation Roads: 
     $291,251,572 for fiscal year 2005, $312,578,616 for fiscal 
     year 2006,

[[Page H7449]]

     $334,905,660 for fiscal year 2007, $357,232,704 for fiscal 
     year 2008, and $379,559,748 for fiscal year 2009
       Recreation Roads: $44,654,088 for each fiscal years 2005 
     through 2009
       Park Roads and Parkways: $276,855,346 for fiscal year 2005, 
     and $285,786,164 for fiscal years 2006 through 2009
       Refuge Roads: $26,792,453 for fiscal years 2005 through 
     2009
       Public Lands Highways: $267,924,258 for fiscal years 2005 
     through 2009
       Safety: $35,723,270 for fiscal years 2005 through 2009
       Multi-State Corridor Planning Program: $120,566,038 for 
     fiscal year 2005, $140,660,377 for fiscal year 2006, 
     $160,754,717 for fiscal year 2007, $180,849,057 for fiscal 
     year 2008, and $200,943,396 for fiscal year 2009
       Border Planning, Operations, and Technology Program: 
     $120,566,038 for fiscal year 2005, $140,660,377 for fiscal 
     year 2006, $160,754,717 for fiscal year 2007, $180,849,057 
     for fiscal year 2008, and $200,943,396 for fiscal year 2009
       National Scenic Byways Program: $31,257,862 for fiscal year 
     2005, $32,150,943 for fiscal year 2006, $33,044,025 for 
     fiscal year 2007, and $34,830,189 for fiscal years 2008 and 
     2009
       Infrastructure Performance and Maintenance Program: $0
       Construction of Ferry Boats and Terminal Facilities 
     Program: $54,154,424 for fiscal years 2005 through 2009
       Puerto Rico Highway Program: $129,496,855 for fiscal year 
     2005, $133,069,182 for fiscal year 2006, $137,534,591 for 
     fiscal year 2007, $142,893,082 for fiscal year 2008, and 
     $145,572,327 for fiscal year 2009
       Public-Private Partnerships Pilot Program: $8,930,818 for 
     fiscal years 2005 through 2009
       Denali Access System: $26,792,453 for fiscal years 2005 
     through 2009
       Delta Region Transportation Development Program: 
     $71,446,541 for fiscal years 2005 through 2009
       Intermodal Passenger Facilities: $8,930,818 for fiscal 
     years 2005 through 2009
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications. This provision authorizes funds out of the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     the highway programs: Interstate Maintenance Program, 
     National Highway System, Bridge Program, Highway Safety 
     Improvements Program, Surface Transportation Program, 
     Congestion Mitigation and Air Quality Improvement Program, 
     Appalachian Development Highway System Program, Recreational 
     Trails Program, Federal Lands Highways Program, National 
     Corridor Infrastructure Improvement Program, Coordinated 
     Border Infrastructure Program, Projects of National and 
     Regional Significance Program, Construction of Ferry Boats 
     and Ferry Terminal Facilities, National Scenic Byways 
     Program, High Priority Projects Program, Safe Routes to 
     School Program, Highways for LIFE Program, and Puerto Rico 
     Highway Program.
       Subsection (b) continues the disadvantaged business 
     enterprise (DBE) program with minor changes. The Committee 
     finds there is a continuing compelling need for the DBE 
     program. In enacting TEA 21 in 1998, Congress compiled an 
     extensive record on the effects of discrimination in 
     transportation contracting. Much of this information remains 
     valid today. We agree with those courts that have observed 
     that evidence concerning the exclusion of disadvantaged 
     groups remains relevant over a considerable period of time. 
     The Committee has relied on the information that Congress 
     used in 1998 in finding a continuing compelling need for the 
     DBE program. Under DBE, not less than 10 percent of the funds 
     provided under titles I and II of this Act shall be expended 
     with small businesses owned and controlled by socially and 
     economically disadvantaged individuals, except to the extent 
     the Secretary of Transportation determines otherwise. The 
     provision in current law requiring a review of the program by 
     the Comptroller General of the United States has been 
     eliminated. The Comptroller General completed the required 
     review in June 2001.


                     SEC. 1102. OBLIGATION CEILING

     House Bill
       Sec. 1102.
       This section provides the obligation limitation for the 
     federal-aid highway and highway safety construction programs. 
     Subsection (b) addresses the exemptions to the obligation 
     limitation. Paragraphs 1-8 in this subsection are identical 
     to TEA 21. Paragraph (9) is added to address three year 
     obligation authority (OA) made available under TEA 21 for 
     research programs and ``no-year'' OA made available for 
     certain programs and projects under TEA 21 or in subsequent 
     appropriations acts. Subsections (c),(d),(e),(f),(g),(h), and 
     (i) address how the obligation authority is distributed, the 
     redistribution of unused obligation authority, and the 
     limitation on obligations for administrative expenses are 
     virtually identical to TEA 21.
     Senate Bill
       Sec. 1102.
       This section sets limits on obligations for spending.
       The general limitation on spending shall be as follows:
       $34,425,380,000 for fiscal year 2005,
       $37,154,999,523 for fiscal year 2006,
       $37,450,167,691 for fiscal year 2007,
       $38,816,364,417 for fiscal year 2008, and
       $40,321,257,845 for fiscal year 2009.
     Conference Substitute
       The Conference adopts provisions from both House and Senate 
     bills with modified funding levels and a funding flexibility 
     provision for fiscal year 2005. This flexibility provision 
     allows states to obligate funds from 1301 and 1302 of this 
     Act and sections 117 and 144(g) of title 23 on core formula 
     programs.


                       SEC. 1103. APPORTIONMENTS

     House Bill
       Sec. 1103.
       This section makes changes to the process by which 
     apportionments are made pursuant to Section 104 of Title 23. 
     Subsection (a) of this section amends the way administrative 
     expenses for FHWA and FMCSA are provided. These expenses were 
     formerly funded as a takedown and are now a specific 
     authorized amount.
       Subsection (b) of this section changes the set-aside amount 
     for the Alaska Highway and the set-asides for the U.S. 
     Territories under the National Highway System program 
     apportionment formula.
       Subsection (c) of this section requires the report mandated 
     by Section 104(j) of Title 23 be available on the Internet.
       Subsection (d) of this section makes a conforming amendment 
     to the metropolitan planning set-aside formula to reflect the 
     fact that administrative expenses are no longer funded as a 
     takedown.
       Subsection (e) of this section updates the reference for 
     the Puerto Rico Highway program, replacing the TEA 21 
     reference with a TEA LU reference.
     Senate Bill
       Sec. 1103.
       This section makes amendments to current apportionments. It 
     authorizes the appropriation of funds for the administrative 
     expenses of the Federal Highway Administration and details 
     the use of these funds.
       This section amends the amounts authorized for 
     administrative expenses, for specified programs to:
       $415,283,019 for fiscal year 2005,
       $428,679,245 for fiscal year 2006,
       $442,075,472 for fiscal year 2007,
       $455,471,698 for fiscal year 2008, and
       $468,867,925 for fiscal year 2009.
       Funds authorized in this section shall be used for the 
     Federal-aid highway program and programs authorized under 
     chapter 2 of title 23, USC. Such sums as the Secretary 
     determines to be appropriate shall be transferred to the 
     Appalachian Regional Commission for administrative activities 
     associated with the Appalachian highway development system.
       The bill increases the set-aside for metropolitan planning 
     to 1.5 percent from the same programs as under TEA-21 and, 
     additionally, the new Highway Safety Program and Equity Bonus 
     Program. Because the 2000 Census establishes 46 new 
     Metropolitan Planning Organizations (MPOs), an increase in 
     funding for metropolitan planning is required. Under the law, 
     each MPO is directed to assume the responsibility for 
     carrying out specific, costly and detailed Federal analysis 
     as required under NEPA, Air Quality Conformity, Long Range 
     Planning, Transportation Improvement Program planning, 
     transportation modeling, operations, and public involvement. 
     This bill further enhances MPO planning for habitat plan 
     development, freight movement, transportation security, 
     deployment of ITS systems including operating and managing 
     traffic centers and incident management programs, and 
     interacting with emergency management officials regarding 
     homeland security issues.
     Conference Substitute
       The Conference agrees to provisions from both House and 
     Senate bills with modifications. This section amends current 
     apportionments. It authorizes the appropriation of funds for 
     the administrative expenses of the Federal Highway 
     Administration and details the use of these funds.
       This provision increases the set-aside amount for the 
     Alaska Highway and the set-asides for the U.S. Territories 
     under the National Highway System program apportionment 
     formula. Changes are also made to the Operation Lifesaver 
     and High-Speed Rail Corridor programs from set-asides to 
     become individually-funded programs.
       The Conference adopts the Senate CMAQ provision with 
     modifications. The addition of a weighting factor for PM2.5 
     nonattainment areas is not included in the substitute. The 
     Senate language regarding an additional adjustment factor for 
     carbon monoxide is adopted with no modifications.
       For areas in ozone nonattainment, the Conference applies a 
     weighting factor of 1.0 for areas designated under subpart 1 
     of part D of title I of the Clean Air Act. The Conference 
     maintains the current system of varied weighting factors for 
     areas classified under subpart 2 and intends it to apply to 
     8-hour nonattainment areas in the same manner it did to 1-
     hour nonattainment areas. For example, an 8-hour ozone 
     nonattainment area that is classified by EPA as moderate 
     pursuant to subpart 2 would receive a weighting factor of 
     1.1, while an 8-hour nonattainment area classified by EPA as 
     serious pursuant to subpart 2 would receive a weighting 
     factor of 1.2.


                    SEC. 1104. EQUITY BONUS PROGRAM

     House Bill
       Sec. 1104.
       This section retains the Minimum Guarantee program that was 
     created in TEA-21.

[[Page H7450]]

     Senate Bill
       Sec. 1104.
       This section strikes and replaces the Minimum Guarantee 
     Program under Section 105 of Title 23, United States Code 
     with the Equity Bonus Program.
       The Secretary shall ensure that the percentages of 
     apportionments of each State is sufficient to ensure that no 
     State's percentage return from the Highway Trust Fund is less 
     than 92 percent in each of the fiscal years 2005-2009. The 
     rate of return shall include from each State, the total 
     apportionments made for the fiscal year for the Interstate 
     Maintenance Program, the National Highway System Program, the 
     Bridge Program, the Surface Transportation Program, the 
     Congestion Mitigation and Air Quality Improvement Program, 
     the Highway Safety Improvement Program, the Appalachian 
     Development Highway System Program, the Recreational Trails 
     Program, the Infrastructure Performance and Maintenance 
     Program, the Metropolitan Planning Program, and the Equity 
     Bonus Program.
       Special rules protect the calculations for States with a 
     population density of less than 20 persons per square mile, a 
     population less than 1 million, a median household income 
     less than $35,000, or a State with a fatality rate during 
     2002 on Interstate highways greater than 1 fatality per 100 
     million vehicle miles traveled on Interstate highways. 
     Further, no State receives apportionments less than 110 
     percent of the average annual apportionments for specified 
     programs during 1998-2003. There is a cap on the Equity Bonus 
     such that no State may receive apportionments more than a 
     specified percentage of their average for 1998-2003. The 
     scope, or percent funding included in the Equity Bonus 
     program, remains the same as TEA-21 at 92.5 percent.
     Conference Substitute
       The conference adopts the Senate structure with 
     modifications. The Secretary shall ensure that the 
     percentages of apportionments of each State is sufficient to 
     ensure that no State's percentage return from the Highway 
     Trust Fund is less than 90.5% in fiscal year 2005 and 2006, 
     91.5% in 2007, and 92% in 2008 and 2009. The rate of return 
     shall include from each State, the total apportionments made 
     for the fiscal year for the Interstate Maintenance Program, 
     the National Highway System Program, the Bridge Program, the 
     Surface Transportation Program, the Congestion Mitigation and 
     Air Quality Improvement Program, the Highway Safety 
     Improvement Program, the Appalachian Development Highway 
     System Program, the Recreational Trails Program, the Safe 
     Routes to School Program, the Metropolitan Planning Program, 
     the High Priority Project Program, the Railway-Highway 
     Crossings Program, the Coordinated Border Infrastructure 
     Program, and the Equity Bonus Program.
       Special rules protect the share of apportionments to be 
     provided to any State meeting any one or more of the 
     following criteria: total population density of less than 40 
     persons per square mile, as reported in the decennial census 
     conducted by the Federal Government in 2000, having at least 
     1.25 percent of its total acreage in Federal ownership based 
     on GSA's ``Federal Real Property Profile, as of September 30, 
     2004'' report; or a population less than 1 million as 
     reported in that census; or a median household income less 
     than $35,000 as reported in that census; or a State with a 
     fatality rate during 2002 on Interstate highways greater than 
     1 fatality per 100 million vehicle miles traveled on 
     Interstate highways; or a State with an indexed, state motor 
     fuels excise tax rate higher than 150 percent of the Federal 
     motor fuels excise tax rate on the date of enactment of this 
     Act.
       Further, no State receives apportionments less than certain 
     percentages above their TEA-21 average annual apportionments 
     for specified programs during 1998-2003. (FY 2005--117 
     percent; FY 2006--118 percent; FY 2007--119 percent; FY 
     2008--120 percent; and FY 2009--121 percent)


              SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY

     House Bill
       Sec. 1108.
       This section continues the revenue aligned budget 
     authority, but in a way that ensures greater stability in 
     program funding level adjustments.
     Senate Bill
       Sec. 1105.
       This section changes the calculation of Revenue Aligned 
     Budget Authority under Section 110 of Title 23, United States 
     Code.
       A new method of determining RABA is established in this 
     section. This provision amends section 110 of Title 23, to 
     extend the RABA provision through FY 2009. It also amends 
     section 110 to provide that if the RABA adjustment in a 
     fiscal year is negative, the amount of contract authority 
     apportioned to the States for that year shall be reduced by 
     an amount equal to the negative RABA. Under TEA-21, negative 
     adjustments were delayed until the succeeding fiscal year. 
     Under the new method, no reduction to apportionments are made 
     for RABA for a fiscal year if the cash balance of the highway 
     trust fund (other than the mass transit account) exceeds 
     $6,000,000,000 on October 1 of that fiscal year.
     Conference Substitute
       The Conference adopts concepts from both the House and 
     Senate provisions. This provision changes the calculation of 
     Revenue Aligned Budget Authority under Section 110 of Title 
     23 to ensure greater stability in program funding level 
     adjustments.
       A new method of determining RABA is established in this 
     section. This provision amends section 110 of Title 23, to 
     extend the RABA provision through FY 2009. RABA calculations 
     will be spread over 2 fiscal years, rather than in a single 
     year as in TEA-21.
       For fiscal year 2007, any positive RABA amounts will be 
     applied to increasing the minimum rate of return for donor 
     States as close to 92 percent as possible. Any remaining 
     funds are to be distributed proportionally.
       Under the new method, no reduction to apportionments are 
     made for RABA for a fiscal year if the cash balance of the 
     highway trust fund (other than the mass transit account) 
     exceeds $6,000,000,000 on October 1 of that fiscal year.


               SEC. 1106. FUTURE INTERSTATE SYSTEM ROUTES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1801.
       This section replaces the 12-year requirement with a 20-
     year requirement to provide States more time to substantially 
     complete construction of highways designated as future 
     Interstate System routes, before the States forfeit future 
     Interstate designation status. This section also extends the 
     time limitation contained in existing agreements from 12 
     years to 20 years.
     Conference Substitute
       The Conference adopts the Senate provision with a 
     modification to change the timeframes from 20 years to 25 
     years.


                    SEC. 1107. METROPOLITAN PLANNING

     House Bill
       Sec. 1816.
       This section requires the States to distribute planning 
     funds to the metropolitan planning organizations within 30 
     days of receipt of such funds from the Secretary.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification to increase the set-aside for metropolitan 
     planning funds from 1 percent to 1.25 percent.


            SEC. 1108. TRANSFER OF HIGHWAY AND TRANSIT FUNDS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1302.
       This section clarifies and authorizes the transferability 
     of funds from the Highway Trust Fund.
       This provision clarifies that Title 23 funds may be 
     transferred by the Secretary to the Federal Transit 
     Administration for other than a transit capital project, 
     provided such project is eligible for Title 23 assistance.
       This section also allows funds derived from the HTF to be 
     transferred, at the request of a State, to another State or 
     States or to a Federal agency provided that they are expended 
     on Title 23 eligible projects.
       An equal amount of obligation authority is transferred with 
     funds transferred from one State to another State. Funds may 
     only be used for the same purpose and in the same manner for 
     which they were authorized.
     Conference Substitute
       The Conference adopts the Senate provision.


                     SEC. 1109. RECREATIONAL TRAILS

     House Bill
       Sec. 1119.
       This section makes various improvements to the recreational 
     trails program established in section 206 of Title 23, U.S. 
     Code.
       Subsection (a) amends 23 USC 104(h) to permit the use of 
     administrative funds for training and deletes reference to 
     the National Recreational Trails Advisory Committee.
       Subsection (b) amends 23 USC 206(d)(2) regarding 
     permissible uses of funds to include assessment of trail 
     conditions and to clarify that new trails on Federal lands 
     must be recommended in a statewide comprehensive outdoor 
     recreation plan.
       Subsection (c) strikes 23 USC 206 (b)(3)(C), which permits 
     States to waive requirements regarding distribution of funds 
     for various types of projects.
       Subsection (d) amends 23 USC 206(f) to provide that the 
     federal share for recreational trails projects shall be 
     determined in accordance with section 120(b) of Title 23 and 
     allows recreational trails funds to be used toward the 
     Federal share of certain other Federal programs.
       Subsection (e) amends 23 USC 206(h)(1) to provide that pre-
     approval planning and environmental compliance costs can be 
     credited toward the non-Federal share of a project.
       Subsection (f) directs the Secretary to encourage the 
     States to use qualified youth conservation or service corps 
     to complete trail projects.
     Senate Bill
       Sec. 1603.
       This section allows funds to be used to provide and 
     maintain recreational trails for motorized and nonmotorized 
     recreational trail uses.

[[Page H7451]]

       The changes in section 206 of Title 23 amend the 
     permissible uses of funds apportioned to States under this 
     program. Eligible categories are added to permit trail 
     assessment for accessibility and maintenance, and to hire 
     trail crews, youth conservation, or service corps to perform 
     recreational trails activities. Non-law enforcement trail 
     safety and trail-use monitoring patrols, and trail-related 
     training are now activities eligible for Recreational Trails 
     Program (RTP) educational funds. However, funds provided 
     under this program are not intended to support routine law 
     enforcement.
       Under this section, pre-approval planning and environmental 
     compliance costs may be credited toward the non-Federal share 
     for RTP projects, limited to costs incurred less than 18 
     months prior to project approval.
       Since projects in this section are much smaller than 
     typical highway projects, this program is relieved of several 
     requirements, which, while appropriate for large highway 
     projects, are excessively burdensome for small trail 
     projects. RTP projects are not subject to sections 112, 114, 
     116, 134, 135, 138, 217, and 301, of Title 23 and section 303 
     of title 49.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification to add the Senate provision (H) under 
     ``Permissible Uses'' which allows for the development and 
     dissemination of publications and operation of educational 
     programs to promote safety and environmental protection, 
     supporting non-law enforcement trail safety and trail use 
     monitoring patrol programs, and providing trail-related 
     training. The Conferees change the administrative expenses 
     from a percentage of program funding to a specific annual 
     authorization.


              SEC. 1110. TEMPORARY TRAFFIC CONTROL DEVICES

     House Bill
       Sec. 1107.
       This section amends Section 109(e) of Title 23 and Section 
     112 of Title 23 to require that contracts for federally 
     funded highway construction projects include costs for 
     appropriate safety measures. The amendment to Section 109 
     requires that temporary traffic control devices be installed 
     and maintained during construction and maintenance projects 
     in order to provide protection for construction workers. The 
     amendment to Section 112 requires the Secretary to issue 
     regulations establishing the conditions for and the 
     appropriate use of Federal funds for uniformed law 
     enforcement officers, positive protective measures between 
     traffic and workers, and installation of temporary traffic 
     control devices during construction and maintenance 
     projects.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House position.


      SEC. 1111. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS

     House Bill
       Sec. 1115.
       This section eliminates the Interstate Maintenance 
     Discretionary program in Section 118 of Title 23. The 
     Committee does not intend to have any changes to this program 
     affect any projects that have already been funded under this 
     program.
     Senate Bill
       Sec. 1805.
       This section continues the interstate discretionary project 
     set-aside listed in section 118(c)(1) of title 23 for fiscal 
     years 2005 through 2009 and increases the amount.
     Conference Substitute
       The Conference adopts the Senate position.


                      SEC. 1112. EMERGENCY RELIEF

     House Bill
       Sec. 1110.
       This section authorizes additional amounts for this program 
     above the $100 million per year to be derived from the 
     General Fund. It is the Committee's intent that if there is a 
     need for additional funds over and above the annually 
     authorized level of $100 million that those funds be 
     appropriated from the General Fund.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House version.


               SEC. 1113. SURFACE TRANSPORTATION PROGRAM

     House Bill
       Sec. 1111.
       This section continues the requirement in Section 133(f)(1) 
     of Title 23 that States suballocate a portion of their 
     Surface Transportation Program funds to urbanized areas with 
     over 200,000 individuals.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification to add eligibility for projects relating to 
     intersections that have high accident rates or high levels of 
     congestion on the Federal-aid system.


                   SEC. 1114. HIGHWAY BRIDGE PROGRAM

     House Bill
       Sec. 1116.
       Subsection (a) retains the principles for applications for 
     and approval of Federal assistance for bridge replacement or 
     rehabilitation allowed in current law. It also includes 
     additional language to allow Federal participation in 
     preventive maintenance on a bridge, as well as, installing 
     scour countermeasures to a bridge.
       Subsection (b) continues the discretionary bridge program 
     and subsection (c) changes the lower bound for the off-system 
     set-aside from 15 percent to 20 percent.
     Senate Bill
       Sec. 1807.
       The Highway Bridge Program provides funds to assist States 
     in improving the condition of their bridges, through 
     replacement, rehabilitation, and systematic preventive 
     maintenance.
       The changes to section 144 allow the use of bridge funds 
     for: (1) preventive maintenance activities consistent with 
     the section 116(d) of the NHS Designation Act, (2) preventive 
     maintenance on off-system bridges, and (3) scour 
     countermeasures without regard to eligibility. This section 
     also increased bridge discretionary funding to $133,962,264.
     Conference Substitute
       The Conference agrees to accept the House provision with 
     modifications. The off-system bridge set-aside is to remain 
     as current law at 15 percent and the Federal share for 
     highway bridges projects is now eligible for up to 90 
     percent.


              SEC. 1115. HIGHWAY USE TAX EVASION PROJECTS

     House Bill
       Sec. 1112.
       This section continues the existing program to combat 
     highway use tax evasion and makes changes designed to reduce 
     tax evasion and increase receipts into the Highway Trust 
     Fund.
       The Highway Use Tax Evasion program supports State and 
     Federal efforts to enhance motor fuel tax enforcement. To 
     make the program more effective, this provision would amend 
     section 143 of title 23 to: (1) dedicate funding for 
     intergovernmental enforcement efforts; (2) allow projects for 
     identification of tax evasion in the area of foreign imported 
     fuel; (3) assist States and Indian Tribes in addressing 
     issues related to the collection of State motor fuel taxes; 
     and (4) provide for annual reporting on examinations, 
     criminal investigations, and audits by the States and the 
     Internal Revenue Service (IRS).
     Senate Bill
       Comparable provision in Senate finance title.
     Conference Substitute
       The Conference agrees to the House provision with funding 
     modifications.


           SEC. 1116. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM

     House Bill
       Sec. 1113.
       This section directs the Secretary to apportion funds made 
     available for the Appalachian Development Highway System 
     (ADHS) among the states on the basis of the estimated cost to 
     complete the system. It specifies that such funds are 
     subject to title 23 requirements and are available to 
     construct ADHS highways and access roads. It also 
     prohibits the use of toll revenues as non-federal match 
     for the construction, improvement, and maintenance of 
     highways, bridges, or tunnels.
     Senate Bill
       Sec. 1808.
       The Appalachian Development Highway System program provides 
     funds for the construction of the Appalachian corridor 
     highways in thirteen States and for the establishment of a 
     State-Federal framework to meet the needs of the region.
       This section prescribes how funds made available for the 
     Appalachian development highway system are to be apportioned 
     to the States in the Appalachian region. The latest cost 
     estimate is to be used as the basis for apportionments. The 
     funding shall remain available until expended and the Federal 
     share is delineated in section 201 of the Appalachian 
     Regional Development Act of 1965. This section also prohibits 
     the use of toll credits on projects funded under the 
     Appalachian development highway system program under subtitle 
     IV of title 40.
     Conference Substitute
       The Conference adopts the House version.


 SEC. 1117. TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION PROGRAM

     House Bill
       Sec. 1117.
       This section reauthorizes the program for fiscal years 2004 
     through 2009. It prohibits funds made available for this 
     program from being transferred to other programs, and 
     establishes the federal cost share for projects carried out 
     under this program in accordance with section 120(b) of title 
     23. Subsection (c) establishes a pilot program to support 
     transportation planning and public participation in decision 
     making.
     Senate Bill
       Sec. 1813.
       This section continues the Transportation and Community and 
     System Preservation (TCSP) Pilot Program, a comprehensive 
     initiative of research and implementation grants to 
     investigate the relationships between transportation and 
     community and system preservation, as well as private sector-
     based initiatives. This section also makes TCSP projects STP 
     eligible.

[[Page H7452]]

       This section requires the Secretary to establish a 
     comprehensive program to facilitate the planning, 
     development, and implementation of strategies by States, 
     metropolitan planning organizations, Federally-recognized 
     Indian tribes, and local governments to integrate 
     transportation, community, and system preservation plans and 
     practices.
     Conference Substitute
       The conference agrees to the Senate provision with 
     modifications to drop subsection (b)(18) from the Senate 
     passed bill and move (19) to an eligible activity under the 
     Surface Transportation Program. The conference also agreed to 
     not codify this program.


                 SEC. 1118. TERRITORIAL HIGHWAY PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1818.
       The changes made in section 215 of title 23 update and 
     consolidate the statutory provisions governing the 
     territorial highway program.
     Conference Substitute
       The Conference adopts the Senate provision.


                   SEC. 1119. FEDERAL LANDS HIGHWAYS

     House Bill
       Sec. 1120.
       Subsection (a) amends the contracting provisions of the 
     Indian reservation roads program in section 202(d)(3) of 
     title 23. This section was added to the United States Code in 
     TEA 21. The Committee felt at that time that the 
     congressional intent with regard to tribal contracting 
     authority was clear. Unfortunately, the Committee now 
     believes the full intent of the TEA 21 amendments has not 
     been fulfilled. This subsection aims to clarify the intent of 
     the Committee on this important point for the Indian tribes.
       The Committee is aware that certain tribes currently 
     possess the ability to carry out themselves, or contract 
     directly with outside providers, highway, bridge, and transit 
     projects that are located on Indian reservations or that 
     provide access to the reservations, including planning, 
     research, engineering, and construction activities relating 
     to such projects. Other tribes are developing their ability 
     to perform those functions.
       This amendment to section 202(d)(3) of title 23 is intended 
     to empower Indian tribes that have the ability and interest 
     to carry out the activities in-house or to contract directly 
     with outside providers for the activities consistent with the 
     Indian Self-Determination and Education Assistance Act. It 
     allows tribes to choose, on a project-by-project basis, those 
     activities that they want to perform themselves or to 
     contract directly with outside providers. At the same time, 
     existing capabilities within the Bureau of Indian Affairs are 
     retained to support tribes that do not have such ability or 
     interest. It directs that funds be paid directly by the 
     Federal Highway Administration (FHWA) to the Indian tribal 
     government when a tribe carries out, or contracts directly 
     with outside providers for a planning, research, engineering, 
     or construction activity relating to a highway, bridge, or 
     transit project located on an Indian reservation or that 
     provides access to the reservation. Furthermore, it directs 
     FHWA to determine the amount of funds for such activity and 
     project that is to be received by the Indian tribe according 
     to the funding formula established under section 202(d) of 
     title 23, without deducting from it any non-project-related 
     administrative take-down or project management costs imposed 
     by the Bureau of Indian Affairs or the Department of the 
     Interior.
     Senate Bill
       Sec. 1806.
       The Federal Lands Highway Program provides funding for a 
     coordinated program of public roads and transit facilities 
     serving Federal and Indian lands.
       Section 101 of title 23 is amended to include new 
     definitions for `recreation roads' and `public forest service 
     roads,' to reflect new classes of Federal lands highways. It 
     also changes the definitions of `forest development roads and 
     trails' and `forest road or trail' to reflect current U.S. 
     Forest Service definitions and a new class of Federal lands 
     highways.
       The Federal Lands Highways program allocation in section 
     202 of title 23, USC is amended to: (1) revise the date on 
     which the Indian Reservation Road fund distribution formula 
     regulation is published, from April 1999 to April 2004, and 
     the year in which the new formula is implemented, from 
     October 1999 to October 2004; (2) allow the use of Indian 
     Reservation Road Bridge funds to be used for design, 
     engineering and preconstruction as well as construction; (3) 
     limit the amounts that the Bureau of Indian Affairs may use 
     to pay the costs of administering the Indian reservation 
     roads program (including the administrative expenses relating 
     to individual projects associated with the Indian reservation 
     roads program) to 6 percent; (4) require not later than 30 
     days after the date on which funds are made available to the 
     Secretary of the Interior the distribution and availability 
     of such funds for immediate use by eligible Indian tribes; 
     (5) establish a demonstration program under which eligible 
     tribes may enter into contracts and agreements with the 
     Secretary of Transportation under the Indian Self-
     Determination and Education Assistance Act; (6) authorize 
     $13,396,226 annually for IRR bridge planning, design, 
     engineering, preconstruction, construction and inspection; 
     and (7) make Indian reservation road maintenance expenses 
     eligible for funding up to certain amounts.
       Section 204 of title 23 is amended to: (1) allow the 
     Secretary to enter into agreements as well as contracts, and 
     (2) expand the use of refuge road funds to be used for 
     interpretive signage, maintenance of public roads in National 
     Fish hatcheries, payment of the non-Federal share of Federal-
     aid highway and transit projects, and maintenance and 
     improvement of recreational trails. Funding used for trails 
     would be limited to 5 percent of available funding per fiscal 
     year.
       Maintenance and improvement projects on recreation roads 
     consistent with or identified in a land use plan do not need 
     any additional environmental reviews or assessments under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) if there is no new information and no significant 
     changes to the proposal bearing on environmental concerns. 
     Improvement projects include those consisting of one or more 
     of the following elements: roadway widening, adding 
     shoulders, paving of gravel roads, gravelling of earth roads, 
     rebuilding of the roadway subgrade, reshaping the roadway 
     surface, replacing culverts, rehabilitation or widening of 
     bridges, minor grade and curvature adjustments to short 
     sections of roads, and the installation of signs, pavement 
     striping, guardrails and other safety hardware.
       A safety funding category is created to provide dedicated 
     funds for transportation safety improvement projects, 
     collection of safety information, development and operation 
     of safety management systems, highway safety education 
     programs, and other eligible activities under section 402 of 
     title 23. Safety funding is distributed among the Bureau of 
     Reclamation, the Bureau of Indian Affairs, the Bureau of Land 
     Management, the Forest Service, the Fish and Wildlife 
     Service, and the Army Corps of Engineers.
       A recreation roads funding category is created to provide 
     dedicated funds for improvement projects for public roads 
     under the jurisdiction of the Bureau of Land Management, 
     Bureau of Reclamation, Forest Service, Department of Defense, 
     and Army Corps of Engineers, and that are owned by the U.S. 
     Government.
     Conference Substitute
       The conference adopts the Senate provision with several 
     modifications. New funding and eligibility categories for 
     safety and recreation roads are eliminated. Specific dollar 
     amounts are identified for program management oversight and 
     project-related administrative expenses of the Bureau of 
     Indian Affairs equaling roughly 6 percent of each year's 
     program allocation. These amounts are still subject to 
     reduction upon a tribe's request for use in carrying out 
     contracts and agreements in accordance with the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.).
       In addition to contracts and agreements currently permitted 
     under section 202(d)(3) of title 23 between tribes and the 
     Secretary of the Interior in accordance with the Indian Self-
     Determination and Education Assistance Act (ISDEAA), tribes 
     will also be able to enter into contracts and agreements in 
     accordance with ISDEAA for IRR programs or projects with the 
     Secretary of Transportation.
       Amounts authorized for Indian reservation road bridges is 
     increased to $14 million annually. Within the office of the 
     Secretary is created a new Deputy Assistant Secretary for 
     Tribal Government Affairs. The Secretary is also directed to 
     conduct a national IRR survey, and to conduct a study of 
     methods to reduce collisions between motor vehicles and 
     wildlife.


                 SEC. 1120. PUERTO RICO HIGHWAY PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1811.
       Section 173 of title 23 authorizes the continuation of the 
     Puerto Rico Highway Program to carry out a highway program in 
     the Commonwealth of Puerto Rico.
       The committee continues the requirement to distribute the 
     lump sum authorized each year to programs in the same 
     proportions that Puerto Rico received apportionments of such 
     funds in 1997. The funds are subject to the penalties under 
     titles 23 and 49 that would apply to apportionments from the 
     programs.
     Conference Substitute
       The Conference adopts the Senate language with minor 
     modifications.


                       SEC. 1121. HOV FACILITIES

     House Bill
       Sec. 1208.
       This section adds a new section 168 to title 23 that 
     authorizes the use of High Occupancy Vehicle lanes. 
     Subsection (a) of the proposed section 168 in title 23 allows 
     a state agency to establish the occupancy requirements of 
     vehicles operating on an HOV facility except that no fewer 
     than 2 occupants per vehicle may be required for use of a HOV 
     facility.
       This section also provides the exemptions for the HOV 
     occupancy requirements including motorcycles, bicycles, 
     public transportation vehicles, and High Occupancy Toll (HOT) 
     vehicles and low emission and energy-efficient vehicles.

[[Page H7453]]

       For HOT lanes the state agency must charge operators of 
     vehicles with less than the established occupancy 
     requirements a fee. The agency must also establish a program 
     that addresses how motorists can enroll and participate in 
     the toll program, automatically collects tolls, and 
     establishes policies and procedures to manage demand by 
     varying the toll, enforce violations, and permit low-income 
     drivers to pay a reduced toll.
       For inherently low emission vehicles, a state may allow the 
     use of HOV lanes even if the occupancy requirements are not 
     met so long as the vehicles are certified pursuant to section 
     88.311-93 of title 40, Code of Federal Regulations. The state 
     agency may also allow other low emission and energy efficient 
     vehicles to pay a toll to use HOV lanes even if the occupancy 
     requirements are not met if those vehicles meet the 
     certification requirements that the EPA is directed to 
     develop in subsection (e). The toll amount charged to low 
     emission vehicles not certified pursuant to the CFR and other 
     energy efficient vehicles may be less than other HOT lane 
     vehicles, or the toll may be zero.
       This section also sets requirements applicable to tolls on 
     HOV lanes. This subsection verifies that HOV facilities on 
     the interstate can be tolled pursuant to the provisions of 
     this section. The subsection also states that the state 
     agency must first use the toll revenue to repay debt and 
     provide a reasonable rate of return on investments and then 
     must give priority consideration to projects for developing 
     alternatives to single occupancy vehicle travel and projects 
     for improving highway safety, including projects that improve 
     safety by providing increased capacity.
       This section addresses HOV facility management, operation, 
     monitoring and enforcement. If a state agency allows single 
     occupancy HOV vehicles to use the facility it must ensure 
     that vehicles maintain a minimum operating speed 90 percent 
     of the time over a 6-month period during weekday peak travel 
     periods.
     Senate Bill
       Sec. 1606.
       This section amends section 102(a) of title 23 to clarify 
     existing law and provide more flexibility to State and local 
     agencies for effective management of HOV facilities.
       This section identifies the types of vehicles that are 
     exempt from meeting the minimum occupancy requirements for 
     HOV facilities. This provision also identifies the possible 
     options that responsible agencies may select from and use as 
     operational strategies to maximize the use of existing and 
     planned future HOV facilities and highway capacity, mitigate 
     congestion, and reduce fuel consumption. Motorcycles shall 
     not be considered single-occupant vehicles and shall be 
     allowed to use HOV facilities, consistent with the 
     provisions of section 163 of the Surface Transportation 
     Assistance Act of 1982.
       Responsible agencies may allow low-emission and energy-
     efficient vehicles to use HOV facilities provided that the 
     agency: (1) creates a program that defines how such 
     qualifying vehicles are selected and certified, (2) 
     establishes a method to label qualifying vehicles (3) 
     continuously monitors, evaluates, reports to the Secretary on 
     performance, (4) and imposes restrictions on the use of HOV 
     lanes by vehicles that do not meet established requirements.
       Responsible agencies are provided with the option of 
     charging vehicles a toll for the use of an HOV facility if 
     these vehicles do not meet the minimum occupancy 
     requirements, and if the requirements of section 129 of title 
     23 are met.
       A responsible agency under this section includes a State 
     department of transportation, local transportation agency, or 
     other public or private entity designated by a State to 
     collect a toll on HOV lanes.
     Conference Substitute
       The conference agrees to the House provision, with certain 
     accommodations to the Senate language, to add a new section 
     168 to title 23 that authorizes the use of HOV lanes. 
     Subsection (a) of the new section 168 in title 23 allows a 
     state agency to establish the occupancy requirements of 
     vehicles operating on an HOV facility except that no fewer 
     than 2 occupants per vehicle may be required for use of a HOV 
     facility.
       The conferees intend for this provision to provide 
     exemptions for the HOV occupancy requirements including 
     motorcycles, bicycles, public transportation vehicles, 
     inherently low emission vehicles, low emission and energy-
     efficient vehicles, and High Occupancy Toll (HOT) vehicles.
       For inherently low emission vehicles, the conferees accept 
     the House provisions that the state may allow the use of HOV 
     lanes even if the occupancy requirements are not met so long 
     as the vehicles are certified pursuant to section 88.311-93 
     of title 40, Code of Federal Regulations. The state agency 
     may also allow other low emission and energy efficient 
     vehicles to pay a toll to use HOV lanes even if the occupancy 
     requirements are not met if those vehicles meet the 
     certification requirements that the EPA is directed to 
     develop in subsection (e). The toll amount charged to low 
     emission vehicles not certified pursuant to the CFR and other 
     energy efficient vehicles may be less than other HOT lane 
     vehicles, or the toll may be zero.
       The House recedes to the Senate on the definition of low 
     emission and energy efficient vehicles. Under this language, 
     the Administrator of EPA must certify that a low emission or 
     energy efficient vehicles operating in the HOV lane with 
     fewer than 2 passengers meets Tier II emissions levels 
     established under section 202(i) of the Clean Air Act (42 
     U.S.C. 7521(i)) for that make and model vehicle. In addition 
     to meeting Tier II, a low emission or energy efficient 
     vehicles must meet one of two additional requirements: it 
     must be an alternative fuel vehicle operating on alternative 
     fuel or, if it is propelled by on-board hybrid technologies, 
     it must meet particular fuel economy performance 
     requirements.
       For the purposes of this section, Senate recedes to the 
     House on the definition of alternative fuel vehicles with one 
     clarification that such fuels include additional 
     substantially non-petroleum fuels regulated under 10 C.F.R. 
     490.
       With respect to the determination of fuel economy 
     performance requirements for a low emission or energy 
     efficient vehicle not meeting occupancy requirements that is 
     propelled by on-board hybrid technologies, the conferees have 
     agreed to accept language in the Senate-passed legislation. 
     Under this subsection, a low emission or energy efficient 
     vehicle propelled by hybrid technology may access the HOV 
     lane if the EPA certifies that it has achieved not less than 
     a 50-percent increase in city fuel economy or not less than a 
     25-percent increase in combined city-highway fuel economy. 
     The conferees also have made conforming changes to the 
     section to ensure that states have the ability to increase 
     either of these percentages as part of their HOV management 
     programs. The conferees intend to give the states broad 
     discretion to increase these percentages for individual 
     vehicles as a way of managing vehicle access, maintaining air 
     quality and preventing lane degradation.
       The conferees note that some current hybrid manufacturers 
     make hybrid versions of a vehicle and do not make a gasoline 
     counterpart. In such cases, the conferees feel that EPA and 
     the states should compare the hybrid vehicle to a group or 
     class of gasoline vehicles of similar size, weight and 
     performance.
       This section also sets requirements applicable to tolls on 
     HOV lanes. This subsection verifies that HOV facilities on 
     the Interstate can be tolled pursuant to the provisions of 
     this section. The subsection also states that the state 
     agency must first use the toll revenue to repay debt and 
     provide a reasonable rate of return on investments and then 
     must give priority consideration to projects for developing 
     alternatives to single occupancy vehicle travel and projects 
     for improving highway safety, including projects that improve 
     safety by providing increased capacity.
       This section addresses HOV facility management, operation, 
     monitoring and enforcement. If a state agency allows single 
     occupancy HOV vehicles to use the facility it must ensure 
     that vehicles maintain a minimum operating speed 90 percent 
     of the time over a 6-month period during weekday peak travel 
     periods. The conferees intend that a state agency include a 
     public authority or a public or private entity designated by 
     the state agency.


                   SEC. 1122. BIA INDIAN ROAD PROGRAM

                         SEC. 1123. DEFINITIONS

     House Bill
       This section adds ``Advanced Truck Stop Electrification 
     System'' to the definitions in section 101.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification to add an additional provision to amend the 
     definition of ``Transportation Enhancement Activity'' to 
     include the acquisition of historic battlefields and to 
     clarify that inventory for outdoor advertising is currently 
     and shall continue to be an eligible activity.
       Inventory control may include, but not be limited to, data 
     collection, acquisition and maintenance of digital aerial 
     photography, video logging, scanning and imaging of data, 
     developing and maintaining an inventory and control database, 
     and hiring of outside legal counsel.

                     Subtitle B--Congestion Releif


       SEC. 1201. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM

     House Bill
       Sec. 1203.
       This section requires the Secretary to establish a program 
     that provides to all States the capability to monitor, in 
     real-time, the traffic and travel conditions of the nation's 
     major highways and to share the information with other 
     States, local governments, and the traveling public.
       The Secretary is required to establish a steering committee 
     to provide guidance regarding the content and uniformity of 
     data exchange formats to ensure that data can be shared.
       With approval from the Secretary, States may obligate 
     certain formula funds for activities related to the planning 
     and deployment of this program.
     Senate Bill
       Sec. 1702.
       This section encourages the deployment of systems to 
     monitor the condition of key surface transportation 
     facilities.
       Changes made to 23 USC 169(c) in this section require the 
     States to establish an incident reporting system within two 
     years of enactment of this section. If a State demonstrates 
     that it cannot meet this deadline,

[[Page H7454]]

     the Secretary may extend this deadline up to 5 years after 
     date of enactment.
       The purpose of the proposed real-time system management 
     information program is to provide the nationwide capability 
     to monitor and disseminate real-time traffic and travel 
     conditions of major highways. The committee hopes this 
     program will improve the security of the surface 
     transportation system, address congestion problems, support 
     improved response to weather events, and facilitate national 
     and regional traveler information.
       Specifically, this section requires the Secretary to 
     establish data exchange formats within one year of enactment 
     of this bill. Within two years of enactment of this bill, 
     each State will be required to establish a statewide incident 
     reporting system, unless a waiver is received from the 
     Secretary that allows up to 3 additional years. In exercising 
     this discretion, the committee expects that the Secretary 
     will only provide the State the minimum extension necessary 
     to complete development of its reporting system.
       The committee expects State and local governments to 
     explicitly address real-time highway and transit needs and 
     the systems needed to meet those needs including coverage, 
     monitoring systems, data fusion and archiving, and methods of 
     information sharing and exchange within their intelligent 
     transportation system regional architecture.
       Activities related to the planning and deployment of real-
     time monitoring elements would be eligible for Surface 
     Transportation Program and National Highway System funds. 
     Under this section, a State may obligate State Planning and 
     Research funds for activities related to the planning of 
     real-time monitoring elements.
     Conference Substitute
       The Conference agrees to accept the House provision with 
     one exception in dropping the provision to establish a 
     National Steering Committee.

                  Subtitle C--Mobility and Efficiency


       SEC. 1301. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE

     House Bill
       Sec. 1304.
       This section establishes a program to finance critical, 
     high-cost transportation infrastructure that address critical 
     national economic and transportation needs. These projects of 
     national and regional significance will improve the safe, 
     secure, and efficient movement of people and goods throughout 
     the United States and improve the health and welfare of the 
     national economy by increasing economic productivity, 
     facilitating international trade, relieving transportation 
     congestion, and enhancing transportation safety.
       The program will fund the construction of high-cost surface 
     transportation projects, including freight railroad projects 
     eligible under title 23. To be eligible for assistance under 
     this program, eligible project costs must equal or exceed the 
     lesser of $500 million or 75 percent of the State's highway 
     apportionment for the prior fiscal year. The Secretary of 
     Transportation will conduct a national solicitation for 
     applications for projects of national and regional 
     significance and award grants on a competitive basis. The 
     program creates a rigorous review process for project 
     applicants similar to the Federal Transit Administration's 
     review process for transit new start projects.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference agrees to adopt the House provision.


    SEC. 1302. NATIONAL CORRIDOR INFRASTRUCTURE IMPROVEMENT PROGRAM

     House Bill
       Sec. 1301.
       This section directs the Secretary to establish and 
     implement a program to allocate funding to States for highway 
     construction projects in corridors of national significance. 
     A State must submit applications to the Secretary for funds.
       The Secretary shall give priority to corridor projects that 
     are part of, or will be designated as part of, the Dwight D. 
     Eisenhower National System of Interstate and Defense highways 
     and to any project that will be complete in five years. The 
     Secretary shall consider such factors as mobility, economic 
     growth, linking two existing segments of Interstate, 
     commercial vehicle traffic due to NAFTA, reduction of travel 
     time, value of the cargo traveling through the corridor, 
     economic costs, and the financing associated with the 
     project.
     Senate Bill
       Sec. 1809.
       The program supports and encourages multistate 
     transportation planning and facilitates both project 
     development and decision-making for multistate corridors. 
     State transportation departments or metropolitan planning 
     organizations may receive and administer the funds provided 
     under this section for multistate highway and multimodal 
     planning studies and construction.
       Freight demand is forecasted to increase significantly in 
     the coming years. The committee's goal is to meet this 
     growing demand by improving highways and intermodal 
     connections in the nation's key corridors. Funds provided by 
     the Corridor Program should supplement other public and 
     private funding to support strategic improvements, expanding 
     both capacity and efficiency.
       The Secretary shall select studies and projects to be 
     carried out under this program based on: 1) the existence and 
     significance of binding agreements; 2) the endorsement of the 
     study or project by elected representative; 3) prospects for 
     early completion; and 4) whether the study or project was 
     listed in 1105(c) of ISTEA.
       The committee expects that the Secretary will encourage 
     States and other jurisdictions to work together and shall 
     give priority to projects that increase mobility, freight 
     productivity, access to marine or inland ports, safety and 
     security, and reliability.
     Conference Substitute
       The Conference agrees to continue this program as current 
     law with a modification for the funding to be as such sums as 
     necessary out of the General Fund.


          SEC. 1303. COORDINATED BORDER INFRASTRUCTURE PROGRAM

     House Bill
       Sec. 1302.
       This section establishes a new formula program for border 
     infrastructure projects. The Secretary apportions funds to 
     the States based upon several factors: incoming commercial 
     trucks passing through land border ports of entry; the number 
     of incoming personal motor vehicles and buses passing through 
     the land border ports of entry; the weight of incoming cargo 
     by commercial trucks passing through such ports of entry; and 
     the number of land border ports of entry.
       Definitions--``Border region'' means any portion of a 
     border State within 20 miles in an international land border 
     with Canada or Mexico. ``Border State'' means any State that 
     has an international land border with Canada or Mexico. 
     ``Commercial Truck'' means a commercial motor vehicle as 
     defined in section 31301(4) (other than subparagraph (B)) of 
     title 49, U.S.C.
     Senate Bill
       Sec. 1810.
       The purpose of this program is to support the coordination 
     and improvement of bi-national transportation planning, 
     operations, efficiency, capacity, information exchange, 
     safety, and security at the international borders of the 
     United States with Canada and Mexico. The term border State 
     in this section means any of the States of Alaska, Arizona, 
     California, Idaho, Maine, Michigan, Minnesota, Montana, New 
     Hampshire, New Mexico, New York, North Dakota, Texas, 
     Vermont, and Washington.
       The committee is aware of the ever growing strain on the 
     nation's points of entry caused by the demands of a global 
     economy. As with the Corridors Program, the committee has 
     elected to expand funding for the Borders program in hopes 
     that both capacity and operational efficiency can be improved 
     to meet future freight mobility needs.
       The General Services Administration (GSA) is authorized to 
     receive funding under this section at the request of a border 
     State. The committee intends transportation improvement 
     projects undertaken with funds directly transferred by the 
     Secretary to the GSA to be designed and constructed in 
     coordination with State transportation officials. State 
     transportation departments and metropolitan planning 
     organizations at or near an international land border in a 
     border State may receive and administer funds allocated under 
     this program to carry out the eligible activities listed in 
     this section.
       For each fiscal year, the Secretary shall allocate funds 
     based on the specified formula listed in this section. In 
     choosing projects, it is the hope of the committee that 
     border States choose projects that emphasize multimodal 
     planning, improvements in infrastructure, and improvements 
     that stress both the environment and a desire to promote 
     increased safety, security, freight capacity, and highway 
     access to rail, marine, and air services.
     Conference Substitute
       The Conference agrees to the House provision with a change 
     to the definition of Border region being any portion of a 
     border State within 100 miles in an international land border 
     with Canada or Mexico. Under this section a border state may 
     use funds apportioned to it for this program for, among other 
     things, highway projects located within 100 geographic miles 
     of an international land border, and for planning and 
     environmental studies for such projects. Such projects are 
     considered to be within a border region and as facilitating 
     cross-border motor vehicle and cargo movements and motor 
     vehicle and cargo movements related to international trade. 
     The Conferees intend funding provided under this program be 
     used to improve highway infrastructure or highway safety for 
     the purpose of facilitating movement of people and goods. 
     Under the provision, various features of title 23 are 
     incorporated by reference, including the sliding scale match 
     provision of 23 USC 120.


   SEC. 1304. HIGH PRIORITY CORRIDORS ON THE NATIONAL HIGHWAY SYSTEM

     House Bill
       Sec. 1804.
       This section adds new corridor designations to the high 
     priority corridor list in ISTEA.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference agrees to House provision with modifications 
     adding additional corridors.

[[Page H7455]]

                  SEC. 1305. TRUCK PARKING FACILITIES

     House Bill
       Sec. 1306.
       This section establishes a pilot program in cooperation 
     with appropriate State, regional, and local governments to 
     address the shortage of long-term parking for commercial 
     motor vehicles on the National Highway System.
       This section allows State, regional, and local governments 
     to address the safety problem of fatigued drivers through a 
     pilot program designed to allow for the creation of new rest 
     stops, as stated in section 120(c) of title 23, addition of 
     new commercial motor vehicle parking facilities adjacent to 
     commercial truck stops or travel plazas, or opening existing 
     weigh stations or park-and-ride facilities to commercial 
     motor vehicle parking. Pilot programs may also include using 
     intelligent transportation systems, or other means, to 
     promote the availability of public or privately available 
     parking facilities.
       The Committee developed this pilot project after working 
     closely with the Administration, industry, State safety and 
     construction agencies, and truck plaza and rest stop 
     operators. It is the Committee's intent that the projects 
     funded from this pilot program only address adding parking 
     facilities in corridors with an identified truck parking 
     shortage. This pilot program is not intended to compete with 
     local businesses or commercial enterprises.
       Not later than five years after the enactment of this bill, 
     the Secretary shall transmit a report on the results of the 
     pilot programs developed under this section.
     Senate Bill
       Sec. 1814.
       This section creates the Commercial Truck Parking and the 
     Corridor and Fringe Parking Pilot Programs. This section also 
     authorizes the Secretary to appropriate funds for these 
     programs.
       The committee aims to create additional parking on the 
     National Highway System by creating two different pilot 
     programs: the Commercial Truck Parking Pilot Program and the 
     Corridor and Fringe Parking Pilot Program. The section 
     authorizes the Secretary to appropriate $8,930,818 in grants 
     from the Highway Trust Fund for each of these programs.
       The Commercial Truck Parking Pilot Program allows funds to 
     be used for construction of safety rest areas that include 
     truck parking, commercial vehicle parking facilities adjacent 
     to commercial truck stops, and projects designed to improve 
     accessibility for truck parking on or near the National 
     Highway System. The committee expects priority for these 
     funds will be given to States with a severe shortage of 
     commercial vehicle parking, as well as potential for positive 
     effects on safety, congestion, and air quality from improved 
     parking facility.
       The committee also recognized the importance of adequate 
     and accessible parking for car pooling, van pooling, ride 
     sharing, commuting, and high occupancy vehicle travel. The 
     committee notes that these practices have a definitive impact 
     on congestion, air quality and traffic safety and proposes 
     the Corridor and Fringe Parking Pilot Program to be given to 
     the States for the construction of parking facilities, costs 
     to promote public awareness of the facilities, and geometric 
     design improvement on adjoining roadways.
     Conference Substitute
       The Conference agrees to adopt the House provision.


     SEC. 1306. FREIGHT INTERMODAL DISTRIBUTION PILOT GRANT PROGRAM

     House Bill
       Sec. 1307.
       This provision establishes a pilot program to demonstrate 
     the feasibility of developing inland intermodal port 
     facilities that can accommodate short-haul rail shipments, 
     relieve traffic congestion, and improve safety at coastal 
     ports in metropolitan areas on the West Coast. Priority will 
     be given to projects that will reduce congestion into and out 
     of international ports in the U.S., reduce the need to move 
     empty containers into and out of ports, and establish or 
     expand intermodal facilities that encourage the development 
     of inland freight distribution centers. Eligible projects may 
     include developing and constructing intermodal freight 
     distribution and transfer facilities at inland ports or at 
     facilities serving inland ports.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The conference adopts the House provision with 
     modifications that eliminate the preference for West Coast 
     ports and names six projects to carry out the pilot program.


  SEC. 1307. DEPLOYMENT OF MAGNETIC LEVITATION TRANSPORTATION PROJECTS

     House Bill
       Sec. 1118.
       This section details the funding and eligibility 
     requirements for constructing fixed guideway infrastructure, 
     as well as the related components necessary for the 
     construction, but not including costs incurred for a new 
     station. Eligible projects under this section must involve a 
     segment or segments of high speed ground transportation 
     corridor, result in an operating transportation facility that 
     provides a revenue-producing service and be approved by the 
     Secretary. It is the Committee's intent for this program to 
     be administered as a new program and not the continuation of 
     any previously authorized program.
     Senate Bill
       Sec. 1819.
       This section continues the authorization of the Magnetic 
     Levitation Transportation Technology Deployment program 
     (MAGLEV) in section 322 of title 23.
       Section 322 of title 23 is amended to allow the Secretary 
     to solicit additional applications from States or authorities 
     designated by one or more States, for financial assistance 
     for planning, design, and construction of eligible MAGLEV 
     projects. Authorized from the Highway Trust Fund for this 
     program is $357,232,704 for fiscal year 2005, $370,628,931 
     for fiscal year 2006, $379,559,748 for fiscal year 2007, 
     $388,490,566 for fiscal year 2008, $401,886,792 for fiscal 
     year 2009.
     Conference Substitute
       The Conference adopts the House provision.


       SEC. 1308. DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1824.
       This section creates section 178 of title 23, the Delta 
     Regional Transportation Development Program.
       The Delta Regional Transportation Development Program is a 
     discretionary program to assist the Delta Regional Authority 
     in developing adequate transportation infrastructure in the 
     8-state region served by the authority. The committee feels 
     that this investment will remedy severe economic distress by 
     stimulating development in the region through the 
     mobilization of people and goods through a safe 
     transportation program. Funds under this program may be used 
     for multi-state highway and transit planning, development, 
     and construction.
     Conference Substitute
       The Conference adopts the Senate provision.


  SEC. 1309. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE 
                          WEIGHT RESTRICTIONS

     House Bill
       Sec. 1830.
       This section extends the exemption that public transit 
     vehicles and over-the-road buses have from axle weight 
     restrictions.
     Senate Bill
       Sec. 1404.
       This section amends section 127 of title 23, relating to 
     axle weight limitations for vehicles using the interstate 
     system.
       This section amends section 127 of title 23 to exempt any 
     over-the-road bus (as defined in section 301 of the Americans 
     With Disabilities Act of 1990) or any vehicle that is 
     regularly and exclusively used as an intrastate public agency 
     transit passenger bus using the National System of Interstate 
     and Defense Highways from the maximum gross weight 
     limitations imposed by any State.
     Conference Substitute
       The Conference adopts the House provision.


                  SEC. 1310. INTERSTATE OASIS PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1815.
       This section establishes an interstate oasis program.
       This section requires the Secretary to establish an 
     interstate oasis program for designating interstate oases 
     that provide products and services to the public, 24 hour 
     access to restroom, and parking for automobiles and heavy 
     trucks. The Secretary shall also take into account the 
     appearance of the facility as well as the proximity of the 
     system to the interstate for its designation.
     Conference Substitute
       The Conference adopts the Senate provision.

                       Subtitle D--Highway Safety


             SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM

     House Bill
       Sec. 1401.
       This section amends title 23 by eliminating the requirement 
     that States set aside 10 percent of their section 133, 
     Surface Transportation Program, funds to carry out section 
     130 of title 23, the Railway-Highway Crossing program and 
     section 152, the Hazard Elimination program. This section 
     also establishes a separate funding authorization for a 
     combined section 130 and 152 called Highway Safety 
     Improvement Program. However, the authorizing language for 
     the two programs still resides in Section 130 and Section 
     152.
       In subsection (a) the definition of Safety Improvement 
     Project as used in Section 101(a)(30) of title 23 is expanded 
     to include the installation of fluorescent, yellow-green 
     signs at pedestrian or bicycle crossings or school zones.
       Subsection (b) amends title 23 to move the set-aside for 
     Operation Lifesaver from the apportionment under the Surface 
     Transportation Program to the apportionment for Section 130. 
     It also increases the amount for this program from $500,000 
     to $600,000.

[[Page H7456]]

       Subsection (c) increases the amount of the set-aside for 
     hazard elimination in high-speed rail corridors designated 
     under 104(d)(2) of title 23 and for the Minneapolis/St. 
     Paul--Chicago segment of the Midwest High-Speed Rail 
     Corridor. The subsection also adds the Northern New England 
     High Speed Rail Corridor and expands the South Central 
     Corridor to section 104(d)(2) of title 23.
       Subsection (d) adds a special rule to allow States to use 
     funds for protective devices on other section 130 activities 
     if the State demonstrates to the Secretary that it has met 
     the needs in such State for protective devices. The 
     apportionment formula for rail highway crossings is amended 
     to distribute funds 50 percent based on the STP formula and 
     50 percent based on the number of rail highway crossings. 
     Each state shall receive at least a minimum of one half of 
     one percent. The federal share will be 90 percent. States 
     will be required to report to Congress every two years and 
     can use up to two percent of their funds for analysis and 
     data collection.
       Subsection (e) makes technical changes.
       Subsection (f) amends section 152(a)(1) of title 23 to 
     include in the state survey dangers to the disabled from 
     hazardous road conditions. It also includes a requirement 
     that States identify the roadway safety improvements for 
     hazardous locations. It also adds four new activities for 
     which the funds can be used. The Secretary will use the STP 
     apportionment formula to apportion funds to the States for 
     the Hazard Elimination program. Each State shall receive at 
     least one half of one percent from funds apportioned to the 
     States. The federal share will be 90 percent. The Secretary 
     is required to report to Congress every two years the results 
     of this program, including projects completed, the 
     effectiveness of the projects, adequacy of funding and 
     recommendation of improvements to the program.
       Subsection (g) makes the amendments in subsection (d), (e) 
     and (f) effective September 30, 2005 since there is no 
     funding for the new Highway Safety Improvement Program in 
     fiscal year 2005.
     Senate Bill
       Sec. 1401.
       This program authorizes a new core Federal-aid funding 
     program for the Highway Safety Improvement Program (HSIP) in 
     section 148 of title 23.
       The Committee heard compelling testimony that further 
     progress was needed to project the safety of the traveling 
     public. While rates of highway fatalities have decreased in 
     recent years, 42,000 Americans still lose their lives on the 
     nation's highways each year. In response, the committee has 
     elected to create and apportion funds for a new core program, 
     the Highway Safety Improvement Program. Recognizing that 
     needs and circumstances vary in each State, the committee has 
     sought to provide flexibility to the States on how the new 
     program funds are spent. To ensure that such flexibility is 
     well applied, the Committee will require each State to 
     develop a safety plan and restrict spending under the program 
     to projects or activities arising from that plan.
       Section 133 of title 23, is amended by eliminating the 
     current provision that requires States to set-aside a minimum 
     of 10% of Surface Transportation Program funds for safety 
     programs. Section 148 is subject to three set-asides: (1) 
     $178,616,352 for the elimination of hazards and the 
     installation of protective devices at railway-highway 
     crossings; (2) $22,327,044 for the improvement of traffic 
     signs and pavement markings to accommodate older drivers and 
     pedestrians, and (3) $62,515,723 for the Safe Routes to 
     Schools program under section 150 of title 23.
       Section 1401 eliminates the Hazard Elimination Program 
     under Section 152 of title 23, and incorporates it into 23 
     USC 148 the new HSIP. Additional categories eligible for 
     funding under this section have been added to what is 
     currently eligible under subsection (f) and (g) of section 
     152, title 23.
       The HSIP directs State transportation departments to 
     establish and implement a State strategic highway safety plan 
     in their State. In order to receive funds for this program, 
     States must have a process in place to analyze highway safety 
     problems and opportunities and to produce strategies to 
     mitigate identified safety problems. States must also submit 
     an annual report to the Secretary that identifies hazardous 
     locations and elements, and assesses the costs and 
     impediments to eliminating the hazards.
       States that have developed a strategic highway safety plan 
     are also permitted to use up to 25% of their section 148 
     funds on safety projects carried out under any other section 
     of title 23 as long as the project is consistent with the 
     State's strategic highway safety plan.
       The development of a strategic highway safety plan does not 
     require changes in existing planning processes, plans, or 
     programs of other State transportation or highway safety 
     agencies.
       Sec. 1402.
       This section increases the funding level for Operation 
     Lifesaver from $500,000 to $535,849 for each fiscal year and 
     moves the source of funding from the Surface Transportation 
     Program to section 148, the Highway Safety Improvement 
     Program.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications. The program set-asides within the Senate HSIP 
     structure were modified: (1) to eliminate the set-aside for 
     the Safe Routes to School program, making it a separately 
     funded program; (2) eliminating the mandatory set-aside for 
     bicycle and pedestrian improvements; (3) added a set-aside of 
     $90,000,000 annually for construction and operational 
     improvements on high risk rural roads; (4) increasing the 
     set-aside for the installation of protective devices at 
     railway-highway crossings to $220,000,000; and (5) increasing 
     the set-aside for Operation Lifesaver to $560,000.
       With regards to the State strategic highway safety plans, 
     States are given until October 1, 2007 to develop the plan. 
     If such a plan has not been developed by October 1, 2007, a 
     State's HSIP apportionment for subsequent fiscal years will 
     be frozen at fiscal year 2007 levels, until the State 
     completes development of the strategic highway safety plan. 
     States that have developed a strategic highway safety plan 
     and also certify to the Secretary that they have met their 
     State's needs relating to railway-highway crossings and 
     infrastructure highway safety improvement projects, are also 
     permitted to use up to 10% of their HSIP funds on safety 
     projects carried out under any other section of title 23 
     (e.g. section 402 Highway Safety programs), consistent with 
     the State's strategic highway safety plan. If a State 
     certifies that it has met all of its needs for installation 
     of protective devices at railway-highway crossings, the State 
     may use funds set-aside for section 130 Railway-Highway 
     Crossings to pay for any other safety projects eligible under 
     the HSIP, consistent with that State's strategic safety plan. 
     If a State certifies that it has met all of its needs for 
     construction and operational improvements on high risk rural 
     roads, the State may use funds set-aside for that purpose to 
     pay for any other safety projects eligible under the HSIP, 
     consistent with that State's strategic safety plan. The high 
     risk rural roads program requires the Secretary to ensure 
     States set aside an aggregate of $90 million a year to 
     improve the safety of rural roads. The Conferees intend for 
     the set-aside to be applied proportionally to each States' 
     share of the HSIP apportionment.
       With regards to the distribution formula used to apportion 
     funds for the HSIP program to the States, the Conference 
     abandons the Surface Transportation Program formula 
     previously used to distribute funds for sections 152 and 130. 
     Adopted in its place is the following formula for 
     distributing funds apportioned for the HSIP program: \1/3\ of 
     the funds are apportioned based on each State's percentage of 
     lane miles of Federal-aid highways; \1/3\ of the funds are 
     apportioned based on each State's percentage of vehicle miles 
     traveled on Federal-aid highways; and \1/3\ of the funds are 
     apportioned based on the each State's percentage of 
     fatalities on the Federal-aid system. Additionally, of the 
     amounts set-aside from the HSIP for the elimination of 
     hazards and the installation of protective devices at 
     railway-highway crossings under section 130(e), \1/2\ of the 
     funds are apportioned based on the formula set forth in 
     section 104(b)(3)(A) and \1/2\ of the funds are apportioned 
     based on each State's percentage of railway-highway 
     crossings.


 SEC. 1402. WORKER INJURY PREVENTION AND FREE FLOW OF VEHICULAR TRAFFIC

     House Bill
       Sec. 1402.
       The Secretary shall, within one year, issue regulations 
     requiring workers whose duties place them in close proximity 
     to a Federal-aid highway to wear high visibility garments.
     Senate Bill
       Sec. 1408.
       This section ensures increased worker safety and assists 
     with the free flow of vehicular traffic.
       This section directs the Secretary to promulgate 
     regulations recommending workers near a Federal-aid highway 
     to wear high-visibility clothing, and to recommend any other 
     worker-safety measures that the Secretary deems necessary to 
     minimize worker injuries and maintain the free flow of 
     vehicular traffic.
     Conference Substitute
       The Conference adopts the House provision and finds the 
     provisions in both the House and Senate to be substantially 
     equivalent.


           SEC. 1403. TOLL FACILITIES WORKPLACE SAFETY STUDY

     House Bill
       Sec. 1807.
       This section directs the Secretary to conduct a study to 
     determine the safety of highway toll collection facilities 
     for toll collectors who work in and around such facilities. 
     It requires the Secretary to submit within 1 year a report on 
     the results of the study and recommendations for improving 
     workplace safety at toll facilities to the congressional 
     committees of jurisdiction.
     Senate Bill
       Sec. 7214.
       This program is reauthorized for FYs 2006 through 2009 at 
     an average annual funding level of $142 million. These 
     programs focus on the research and development of safety 
     countermeasures related to impaired driving, occupant 
     protection, traffic law enforcement and criminal justice, 
     licensing, motorcycle, pedestrian, bicycle, teen drivers and 
     emergency medical services. The States use this research to 
     model their safety programs for the most impact on saving 
     lives and reducing injuries. This section also would provide 
     $24 million a year to NHTSA to launch

[[Page H7457]]

     national advertising campaigns to increase seat belt use and 
     reduce drunk driving during holiday periods. Launching these 
     advertising campaigns at the national level is much more cost 
     effective than individual States buying advertising at the 
     local level.
     Conference Substitute
       The Conference adopts the House provision. It is the intent 
     of the conference that those agencies operating such toll 
     facilities shall, at the request of the Secretary, provide 
     data as necessary to adhere to this provision.


                SEC. 1404. SAFE ROUTES TO SCHOOL PROGRAM

     House Bill
       Sec. 1122(a).
       This section establishes two new programs--a Safe Routes to 
     School Program and a Nonmotorized Transportation Pilot 
     Program.
       Subsection (a) establishes a Safe Routes to School Program 
     for the benefit of children in primary and middle schools. 
     The purposes of the program are to enable and encourage 
     children, including those with disabilities, to walk and 
     bicycle to school; to make bicycling and walking to school a 
     safer and more appealing transportation alternative, thereby 
     encouraging a healthy and active lifestyle from an early age; 
     and to facilitate the planning, development and 
     implementation of projects and activities that will improve 
     safety and reduce traffic, fuel consumption, and air 
     pollution in the vicinity of schools.
       Funding is made available by formula to state departments 
     of transportation on the basis of student enrollment in 
     primary and middle schools. No state will receive less than 
     $2 million annually. Funds will be used by the state to 
     provide financial assistance to state, local and regional 
     agencies, including nonprofit organizations, which 
     demonstrate an ability to meet the requirements of this 
     section.
       The program funds two distinct types of projects: 
     infrastructure projects and non- 
     infrastructure related activities. States should be 
     encouraged to create competitive application forms, criteria, 
     and evaluations that are appropriate for the two different 
     types of projects.
       The creation of a state level safe routes to school 
     coordinator position provides a central point of contact for 
     the program. Funding for the state level safe routes to 
     school coordinator position is not included in the 10 to 30 
     percent of funds required to be used for non-infrastructure 
     related activities under this subsection. The state 
     coordinator's position is to be funded from the balance of 
     the state's safe routes to school funds.
       The safe routes to school clearinghouse provides an 
     important opportunity to insure successful implementation of 
     the program. As a new program, states will be interested in 
     guidance on implementing the program effectively and 
     efficiently. The clearinghouse can provide case studies, 
     gather and disseminate information, track implementation, and 
     monitor the program.
       Given the broad scope of safe routes to school activities, 
     the Committee acknowledges the need to include a broad range 
     of agencies and organizations in the Task Force authorized by 
     this section. In addition to representatives from federal 
     agencies, additional task force members could include 
     representatives from state and local agencies as well as 
     relevant non-profit organizations and associations including 
     organizations or associations that represent automobile 
     drivers.
     Senate Bill
       Sec. 1405.
       This section creates a new Safe Routes to Schools Program, 
     section 150 of title 23. The Secretary shall establish and 
     carry out a safe routes to schools program for the benefit of 
     children who walk and bicycle to school.
       The Safe Routes to Schools program works towards this goal 
     by making bicycling and walking a safer and more appealing 
     transportation alternatives. For this program, the Secretary 
     shall set-aside $65,704,024 from section 148 to facilitate 
     the planning, development, and implementation of projects and 
     activities that will improve safety within two miles of 
     primary and secondary schools. The Secretary shall distribute 
     these funds using the formula established in section 148.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification to reduce the minimum state apportionment to $1 
     million.


     SEC. 1405. ROADWAY SAFETY IMPROVEMENTS FOR OLDER DRIVERS AND 
                              PEDESTRIANS

     House Bill
       No comparable provision in Senate bill.
     Senate Bill
       Sec. 1401.
       As part of the Highway Safety Improvement Program, 
     $23,465,723 is authorized for projects 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)''.
     Conference Substitute
       The Conference adopts the Senate provision with a 
     modification to authorize such sums as necessary for the 
     eligible projects.


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

     House Bill
       Sec. 1405.
       This section authorizes $112,000,000 for each of fiscal 
     years 2004 and 2005 for grants to States that have met 
     certain requirements with regards to seatbelts.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


SEC. 1407. SAFETY INCENTIVES TO PREVENT OPERATION OF MOTOR VEHICLES BY 
                          INTOXICATED PERSONS

     House Bill
       Sec. 1406.
       Subsection (a) codifies the penalty against States for not 
     enacting and enforcing a 0.08 drunk driving law. This penalty 
     was originally enacted in the 2001 DOT appropriations bill.
       Subsection (b) authorizes $110,000,000 for each of fiscal 
     years 2004 and 2005 for grants to States that have enacted 
     0.08 laws.
       Subsection (c) repeals the appropriations language that 
     enacted the penalty in 2001.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


 SEC. 1408. IMPROVEMENT OR REPLACEMENT OF HIGHWAY FEATURES ON NATIONAL 
                             HIGHWAY SYSTEM

     House Bill
       Sec. 1408.
       This section instructs the Secretary to conduct a 
     rulemaking to determine the standards to which a State should 
     replace or repair damaged highway features after they have 
     been damaged.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications. The Secretary is required to issue guidance 
     when choosing to improve or replace highway features on the 
     NHS in lieu of a rulemaking. The conferees deleted the word 
     ``repair'' that was in the House provision. Only planned 
     capital projects to ``replace'' or ``improve'' NHS features 
     are covered by the conference provision.


                   SEC. 1409. WORK ZONE SAFETY GRANTS

     House Bill
       Sec. 1809.
       This section directs the Secretary to establish a work zone 
     safety grant program to provide training to prevent or reduce 
     highway work zone injuries and fatalities.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference agrees to adopt the House provision with a 
     modification to subsection (d) Construction Work in Alaska.


     sec. 1410. national work zone safety information clearinghouse

     House Bill
       Sec. 1823.
       This section provides grants to establish and operate a 
     National Work Zone Safety Information Clearinghouse.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                       sec. 1411. roadway safety

     House Bill
       Sec. 1125.
       Subsection (a) directs the Secretary to enter into an 
     agreement with an organization to develop a public service 
     campaign to educate transportation officials, public safety 
     officials, and motorists regarding the extent to which road 
     hazards and design features are a factor in motor vehicle 
     crashes.
       Subsection (b) directs the Secretary to make grants to an 
     organization to operate a national bicycle and pedestrian 
     clearinghouse, to disseminate techniques and strategies for 
     improving bicycle and pedestrian safety, and to develop 
     information and educational programs related to pedestrian 
     activities and cycling.
     Senate Bill
       Sec. 1607.
       This section makes minor amendments to section 217 of Title 
     23.
       These changes explicitly allow the use of STP and CMAQ 
     funds for non-construction pedestrian safety programs whereby 
     current law only mentions bicycle safety. It also explicitly 
     mentions pedestrian use on bridges, whereby current law only 
     mentions bicycle use.
       The current practice of charging user fees for shared-use 
     paths is now explicitly allowed. The fees collected by a 
     State must be used for maintenance and operation of shared 
     use paths within the State. This provision restricts the 
     application of a user fee to shared-use paths not within a 
     highway right-of-way and prohibits extension of user fees to 
     sidewalks or bicycle lanes.
       In order to address concerns regarding bicycle and 
     pedestrian safety, the national bicycle and pedestrian 
     clearinghouse first authorized in section 1212(i) of TEA-21 
     is reauthorized. A new subsection (i) provides funding and 
     contract authority for these safety efforts for fiscal years 
     2004 through 2009.

[[Page H7458]]

       This section also provides that the bicycle and safety 
     grants are to be funded by a set-aside from the Surface 
     Transportation Program.
     Conference Substitute
       The Conference adopts the House provision.


   SEC. 1412. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY

     House Bill
       Sec. 1828.
       This section includes a definition for Advanced Truck Stop 
     Electrification Systems in Title 23 and clarifies that such 
     systems are eligible under CMAQ.
     Senate Bill
       Sec. 1608.
       This section creates an exception to the prohibition of the 
     placement of commercial establishments in rest and recreation 
     areas, and in safety rest areas, constructed or located on 
     rights-of-way of the Interstate System.
       The purpose of this exception allows States (either 
     directly or through contracts) to place electrification or 
     other idling reduction facilities in rest areas that can be 
     used to provide heating, air conditioning, electricity, and 
     communication to motor vehicles used for commercial purposes. 
     Through these facilities, operators of such motor vehicles 
     are able to receive these services without turning on their 
     engines, thereby reducing vehicle emissions. States, other 
     public agencies, and private entities that are already 
     allowed to operate on the Interstate System, may charge for 
     the services provided under this authority.
     Conference Substitute
       The Conference adopted both the House and Senate provision 
     with modifications.

            Subtitle E--Construction and Contract Efficiency


                    sec. 1501. program efficiencies

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1804.
       This section amends 23 U.S.C. 115, Advance construction, 
     and 23 U.S.C. 118, Availability of funds.
       Section 115 is amended to remove the restriction that a 
     State must obligate all of its allocated or apportioned 
     funds, or demonstrate that it will use all obligation 
     authority allocated to it for Federal-aid highways and 
     highway safety construction prior to approval of advance 
     construction projects.
       The revisions clarify that advance construction procedures 
     can be used for all categories of Federal-aid highway funds 
     and that when a project is converted to a regular Federal-aid 
     project, any available Federal-aid funds may be used to 
     convert the project.
       This section further modifies section 115 to remove the 
     requirement that the Secretary must first approve an 
     application of the State prior to authorizing the payment of 
     the Federal share of the cost of the project when additional 
     funds are later apportioned or allocated to the State. The 
     new provision allows the Secretary to obligate the Federal 
     share or a portion of the Federal share of cost of the 
     project by executing a project agreement.
       Section 118 of Title 23, is amended to clarify the method 
     used by FHWA to account for Federal-aid funds and determine 
     amounts subject to lapse. This revision results in no change 
     to current practice but simplifies the language to reduce 
     ambiguity.
     Conference Substitute
       The Conference adopts the Senate provision.


               sec. 1502. highways for life pilot program

     House Bill
       Sec. 1504.
       The Committee intends with this pilot program to 
     incentivize the use of innovative technologies and practices 
     in the construction of highways and bridges. The Committee 
     expects that safe, efficient highways and bridges can be 
     built faster, and with greater durability, if innovative 
     practices and technologies are utilized. This pilot 
     authorizes the Secretary to allocate funds for projects 
     deemed to satisfy the requirements of the project. The 
     selection criteria are designed to identify projects that 
     employ material and technique innovations which will produce 
     more quickly constructed, longer lasting, high-quality and 
     cost-effective projects.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference agrees to accept the House provision with a 
     modification to allow 15 projects at the most each fiscal 
     year.


                        sec. 1503. design-build

     House Bill
       Sec. 1501.
       Subsection (a) amends section 112 of title 23 with the 
     intent of clarifying and improving the design-build authority 
     provided. During the rulemaking process for the design-build 
     regulation required by section 1307 of TEA 21, which also 
     amended 23 U.S.C. 112, FHWA received several comments 
     regarding the restrictive nature of the ``qualified project'' 
     definition with respect to the project cost threshold. 
     Approximately 85 percent of the design-build projects that 
     have been evaluated under the FHWA experimental contracting 
     program (Special Experimental Project No. 14 (SEP-14--
     Innovative Contracting) are too small to meet the definition 
     of ``qualified project.'' Based on the Haw's experience with 
     design-build projects under SEP-14, there is no need to limit 
     design-build projects to those costing more than $5 million 
     in the case of a project that involves installation of an 
     intelligent transportation system and to those costing more 
     than $50 million in the case of any other project.
       Subsection (b) similarly amends section 112 of title 23 
     making clear the parameters of the authority for the use of 
     project evaluation criteria. The subsection also makes clear 
     that this amendment does not disturb any other authority that 
     the Secretary has under current law or that is being carried 
     out by the Secretary as of the date of enactment.
     Senate Bill
       Sec. 1803.
       This section amends section 112(b)(3) of title 23, to 
     include intermodal facilities in the definition of qualified 
     projects.
     Conference Substitute
       The Conference adopts the Senate provision. The Conferees 
     intend that the Secretary's required concurrence is based in 
     part on a determination that activities a state of local 
     transportation agency plans to undertake will not influence 
     the environmental review of those activities under NEPA.

                          Subtitle F--Finance


  sec. 1601. transportation infrastructure finance and innovation act 
                               amendments

     House Bill
       Sec. 1601.
       This section makes programmatic changes to the TIFIA 
     program.
       Subsection (a) makes technical changes to the definitions 
     in Section 181 of title 23.
       Subsection (b) amends section 182 of title 23 to clarify 
     the requirements regarding statewide and metropolitan 
     planning. This subsection also decreases the minimum eligible 
     project costs to $50,000,000 and to $15,000,000 for ITS 
     projects.
       Subsection (c) makes technical changes to the project 
     selection process in section 182 of title 23.
       Subsection (d) makes technical changes to section 183 of 
     Title 23. The change to section 183(a)(4) codifies a DOT 
     regulation that requires the project's senior obligations to 
     receive an investment-grade rating in order to execute a 
     secured loan agreement. The change to section 183(b)(2) 
     ensures that the amount of the TIFIA credit instrument may 
     not exceed that of the senior project obligations. The 
     elimination of section 183(c)(3) deletes the description of 
     sources of repayment funds because the subject is already 
     covered in section 183(b)(3).
       Subsection (e)(1) makes changes to section 184(b)(3) to 
     ease the restrictions on funding draws on a line of credit in 
     order to help a borrower avoid a payment default. The changes 
     to section 184(b)(4) conform the interest rate setting 
     mechanism for the line of credit with that for secured loans. 
     The change to section 184(b)(5) has the same purpose as the 
     changes to sections 183(b)(3) and 182(a)(4).
       Subsection (e)(2) makes changes to Section 184(c) to 
     clarify language regarding the scheduling of principal and 
     interest repayments. The elimination of section 184(c)(3) 
     deletes the description of sources of repayment funds because 
     the subject is already covered in section 184(b)(5)(A)(i).
       The changes to sections 185(a), 185(b), and 185(c) in 
     subsection (f) clarify that the Secretary may establish fees 
     to cover the cost of servicing TIFIA credit instruments. The 
     change to section 185(d) clarifies that the program may 
     retain outside counsel to assist in the underwriting and 
     servicing of TIFIA credit instruments.
       Subsection (g) sets the funding levels for the TIFIA 
     program, including administrative expenses and limitations on 
     credit amounts.
     Senate Bill
       Sec. 1303.
       This section makes amendments to the TIFIA program under 
     sections 181 through 189 of title 23.
       The change to section 181(8)(D), as redesignated, expands 
     the definition of freight-related projects eligible for TIFIA 
     assistance. The provision also allows for a group of such 
     related projects to be eligible, each of which individually 
     might not meet the threshold requirements to apply for TIFIA 
     credit assistance.
       The change to section 182(a)(1) clarifies the provision 
     regarding statewide and metropolitan planning requirements. 
     The existing provision contained language that could be 
     misinterpreted to constrain TIFIA assistance in the case of a 
     project with a construction timetable that extended beyond 
     the typical three-year approved State Transportation 
     Improvement Program (STIP).
       The changes to section 182(a)(3) lowers the threshold cost 
     for eligible projects to $50 million, and also allows to be 
     eligible projects that are equal to or exceed 20 percent of 
     the Federal highway funds apportioned to that State in the 
     most recently completed fiscal year.
       The change to section 183(a)(4) codifies current regulation 
     requiring a project's senior obligations to receive an 
     investment-grade rating in order to execute a secured loan 
     agreement.
       The changes to section 184(b)(4) conform the interest rate 
     setting mechanism for the

[[Page H7459]]

     line of credit with that for secured loans. This change 
     allows the Department to execute both agreements on the same 
     date at the same interest rate if a borrower utilizes both a 
     secured loan and a line of credit for the same project.
       Section 188(a)(2) allows all collected fees to be available 
     to the Secretary without further appropriation to carry out 
     this section.
       Section 188(a)(3) maintains the limit on administrative 
     costs.
     Conference Substitute
       The Conference agrees to adopt provisions from both the 
     House and Senate. This section makes programmatic changes to 
     the TIFIA program. Subsection (a) makes technical changes to 
     the definitions in Section 181 of title 23.
       The conferees eliminated section 181(7) to reflect the 
     Department's decision not to use local servicers to perform 
     the enumerated duties on behalf of the Secretary. Conferees 
     also believe that ongoing servicing of TIFIA loans should be 
     managed by a single entity as it has done so to date.
       These provisions also expand the definition of freight-
     related projects eligible for TIFIA assistance to allow 
     private rail facilities that serve a public benefit for 
     highway users. The provision also makes eligible a group of 
     such related projects, each of which separately might not 
     meet the threshold requirements, to apply for TIFIA 
     assistance.
       Subsection (b) amends Section 182 of title 23 to clarify 
     the requirements regarding statewide and metropolitan 
     planning. This subsection also decreases the minimum eligible 
     project costs to from $100 million to $50 million, 
     $50,000,000 and to $15,000,000 for ITS projects, and changes 
     clause (ii) by striking 50 and inserting 33.3 to ensure that 
     smaller states have the opportunity to benefit from this 
     program as well.
       Subsection (d) makes technical changes to Section 183 of 
     Title 23. The change to section 183(a)(4) codifies a DOT 
     regulation that requires the project's senior obligations to 
     receive an investment-grade rating in order to execute a 
     secured loan agreement. The change to section 183(b)(2) 
     ensures that the amount of the TIFIA credit instrument may 
     not exceed that of the senior project obligations. The 
     elimination of section 183(c)(3) deletes the description of 
     sources of repayment funds because the subject is already 
     covered in section 183(b)(3). It was the intent of the 
     conference to allow agreements to refinance long-term project 
     obligations or Federal credit instruments, if such 
     refinancing provides additional funding capacity for the 
     completion enhancement or expansion of any project selected 
     under section 602 or that otherwise meets the requirements of 
     section 602.
       The changes to section 184(b) conform the interest rate 
     setting mechanism for the line of credit with that for 
     secured loans. This change allows the Department to execute 
     both agreements on the same date at the same interest rate if 
     a borrower utilizes both a secured loan and a line of credit 
     for the same project. The changes to this section also 
     eliminate the 20% cap on what a borrower can draw. It is the 
     conference's understanding that the line of credit tool has 
     not been widely used and the elimination of this cap could 
     incentivize this credit instrument.
       The changes in section 185 clarify that the Secretary may 
     establish, collect and spend fees to cover the cost of 
     servicing TIFIA credit instruments. This section also 
     clarifies that the program may retain outside counsel to 
     assist in the underwriting and servicing of TIFIA credit 
     instruments.
       Sections 181-189 are redesignated to 601-609.


                 SEC. 1602. STATE INFRASTRUCTURE BANKS

     House Bill
       Sec. 1602.
       Subsection (a) of this section codifies a state 
     infrastructure bank (SIB) program in Section 189 of title 23.
       Subsection (a) of section 189 provides definitions for the 
     SIB program. Subsection (b) permits the Secretary to enter 
     into a cooperative agreement with a State for the 
     establishment of a SIB. Subsection (c) allows two or more 
     States to enter into a cooperative agreement with the 
     Secretary to establish a multi-state SIB. Subsection (d) 
     establishes funding requirements for SIBs, restricting the 
     amount of federal funding that a State can deposit in their 
     highway, transit, and rail SIB accounts. Subsection (e) 
     establishes the forms of assistance that a SIB can offer. 
     Subsection (f) describes the eligible projects that are 
     allowed to be funded by the SIB.
       Subsection (g) establishes the requirements that a State 
     must adhere to when establishing a SIB. Subsection (h) speaks 
     to the applicability of Federal law in the SIBs program. 
     Subsection (i) states that the United States is not obligated 
     by any commitment made by a state SIB. Subsection (k) limits 
     the amount of federal funds that can be used to administer 
     the state SIB to 2 percent of the federal funds contributed 
     to the SIB.
       Subsection (b), (c), (d), and (e) of Section 1602 
     establishes a new chapter 6 in title 23 for infrastructure 
     finance.
     Senate Bill
       Sec. 1306.
       This section amends 1511(b)(1)(A) of TEA-21, which named 
     the following States: Missouri, Rhode Island, California, and 
     Florida. This change extends the program to any State that 
     seeks to establish a State infrastructure bank.
       This bill reauthorizes the State Infrastructure Bank (SIB) 
     program under which all States are authorized to enter into 
     cooperative agreements with the Secretary to set up 
     infrastructure revolving funds eligible to be capitalized 
     with Federal transportation funds authorized for the FY 2005-
     2009 period.
       The SIB program gives States the capacity to increase the 
     efficiency of their transportation investment and 
     significantly leverage Federal resources by attracting non-
     Federal public and private investment. The program provides 
     greater flexibility to the States by allowing other types of 
     project assistance in addition to the traditional 
     reimbursable grant.
       SIBs provide various forms of non-grant assistance to 
     eligible projects, including at or below-market rate 
     subordinate loans, interest rate buy-downs on third party 
     loans, and guarantees and other forms of credit enhancement. 
     Any debt that the SIB issues or guarantees must be of 
     investment grade caliber.
     Conference Substitute
       The Conference adopts the House provision.


     SEC. 1603. USE OF EXCESS FUNDS AND FUNDS FOR INACTIVE PROJECTS

     House Bill
       Sec. 1106.
       This section allows states to audit projects funded with 
     apportionments under sections 104 and 144 of title 23 to 
     determine whether there are excess project funds. If the 
     audit reveals that there are excess funds, the state may 
     develop a plan for spending the apportionment for the design 
     or construction of other similar eligible projects. The state 
     must certify to the Secretary that an audit was conducted and 
     has developed a plan. Excess funds used to carry out a 
     project under this section are subject to the requirements of 
     this title that are applicable to the program for which the 
     funds were originally apportioned.
     Senate Bill
       Sec. 1106.
       This provision allows States to convert demonstration 
     projects that were designated prior to 1998 to the Surface 
     Transportation Program (STP). This section also requires 
     States to certify to the Secretary that inactive funds will 
     not be used in order to reobligate them under STP.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications. States can convert demonstration projects that 
     were designated prior to 1991 in public law or a report 
     accompanying public law and reprogram them under STP. States 
     can also convert funds from projects that have no 
     expenditures during any 1-year period or if a State certifies 
     that a project is unlikely to be advanced, it can be 
     converted to STP.
       The Secretary is required to submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives a report on what each state has reprogrammed.
       It is the Sense of the Congress that funds released from 
     demonstration projects are required to reprogram those funds 
     into the same geographic area for which they were originally 
     allocated.


                           SEC. 1604. TOLLING

       The Conference agrees to combine all tolling programs under 
     one section.
     House Bill
       Sec. 1209.
       This section amends the congestion pricing pilot program 
     established under the Intermodal Surface Transportation 
     Equity Act of 1991 to expand the authority to conduct such 
     projects to all States, although the number of congestion 
     pricing pilot projects is limited to 25. The limit of 25 
     projects includes all projects previously approved under this 
     section (prior to the enactment of TEA LU) that collect 
     tolls. This section also requires that any congestion pricing 
     toll programs include a program for low-income drivers to pay 
     a reduced toll. This section also sets aside $3 million a 
     year for congestion pricing programs that do not include 
     tolls.
     Senate Bill
       Sec. 1827.
       This section amends section 1012(b) of ISTEA by continuing 
     the program for fiscal year 2005 and each fiscal year 
     thereafter.
     Conference Substitute
       The Conference agrees to continue the 15 tolling programs 
     under current law and set aside one third of the total 
     funding for the 15 programs to go toward non-tolling 
     programs.
     House Bill
       Sec. 1603.
       This section establishes an interstate system 
     reconstruction and rehabilitation pilot program similar to 
     the one authorized in TEA 21. The new program is limited to 
     three facilities and requires states to show that tolling is 
     the most efficient and economical way to finance the project. 
     The previous program required that states prove that tolling 
     was the only way to finance the interstate reconstruction or 
     rehabilitation project. The new program also requires that 
     the state agency collect tolls electronically and that the 
     agency include a program to permit low-income drivers to pay 
     a reduced toll amount.
     Senate Bill
       This section amends section 1216(b) or TEA-21 to expand the 
     criteria by which

[[Page H7460]]

     states can apply. It is further amended by only allowing the 
     state of Virginia to be eligible for funding under this 
     program if accepted.
     Conference Substitute
       The Conference agrees to drop both provisions and continue 
     current law.
     House Bill
       Sec. 1604.
       This section establishes a new pilot program for projects 
     involving the construction of new interstate facilities. The 
     program is limited to three facilities (multi-state corridor 
     projects may be considered as one facility) and states must 
     show that tolling is the most efficient and economical way to 
     finance the project. The new program also requires that the 
     state agency collect tolls electronically and that the agency 
     include a program to permit low-income drivers to pay a 
     reduced toll amount.
       It is the Committee's intent that this program be used only 
     for the construction of new interstate facilities and that 
     the pilot program authorized in Section 1603 be used only for 
     rehabilitation and reconstruction of existing interstate 
     facilities.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference adopts the House provision.
       Sec. 1609.
     House Bill
       No comparable provision in the House bill.
     Senate Bill
       This section modifies the Interstate System Reconstruction 
     and Rehabilitation Program and establishes a new Fast and 
     Sensible Toll Lanes Program. The Interstate System 
     Reconstruction and Rehabilitation Pilot Program, established 
     in TEA-21 is amended to ease the eligibility criteria for 
     participation in the pilot program. The Fast and Sensible 
     Lanes Program replaces the Value Pricing Pilot Program under 
     TEA-21.
       The change to the Interstate System Reconstruction and 
     Rehabilitation Pilot Program eases the requirement for States 
     to demonstrate that financing the improvements through tolls 
     is the most efficient, economical, or expeditious way to 
     advance the project. It is the intent of the committee that 
     States may use variable pricing under this program. The pilot 
     program remains limited to 3 facilities in 3 different 
     States. A modification to this section designates that one of 
     the facilities be located in Virginia.
       This section also establishes the Fast and Sensible Toll 
     (FAST) Lanes program to manage congestion, reduce emissions 
     in a nonattainment or maintenance area, or to finance the 
     addition of one or more lanes to an interstate to reduce 
     congestion. The Secretary may permit a State to place tolls 
     on highway, bridge or tunnel that are facilities that 
     currently collect tolls, existing HOV facilities, or 
     facilities that are upgraded for additional tolled capacity. 
     Revenues may be used for debt service on highway or transit 
     projects, a reasonable return on investment of any private 
     financing, operational and maintenance costs, or any other 
     purpose related to highway or transit projects under titles 
     23 or 49. The program also allows for the States to vary in 
     price a toll according to time of day or level of traffic, as 
     appropriate to manage congestion or improve air quality. To 
     be eligible to participate in this program, a State must 
     provide to the Secretary a description of the congestion and 
     air quality problems to be addressed, a description of the 
     congestion and air quality problems to be addressed, and the 
     goals to be achieved. The committee realizes that commercial 
     trucks utilize more capacity on roads than other vehicles, 
     and States may toll trucks under this program to fairly 
     reflect the additional capacity that they utilize on a 
     facility. It is not the intent of the committee for States to 
     unfairly charge trucks under a variable toll pricing program.
       This section also permits any State or public authority 
     currently operating under the authority of a cooperative 
     agreement developed under the value pricing pilot program 
     from TEA-21 to continue under the terms of that agreement and 
     states that any State or public authority shall be allowed to 
     continue tolling under that authority.
     Conference Substitute
       The Conference agrees to the Senate provision with a 
     modification that this program will be a pilot program. The 
     name of this program is changed to ``EXPRESS Lanes''.

                   Subtitle G--High Priority Projects


               SEC. 1701. HIGH PRIORITY PROJECTS PROGRAM

     House Bill
       Sec. 1701.
       This section updates the current high priority projects 
     program to reflect the funding and year-by-year allocations 
     provided in TEA LU.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House version.


                   SEC. 1702. PROJECT AUTHORIZATIONS

     House Bill
       Sec. 1702.
       This section lists the State, project description, and 
     dollar amount for each high priority project.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with additional 
     projects listed.


           SEC. 1703. TECHNICAL AMENDMENTS TO TEA-21 PROJECTS

     House Bill
       Sec. 1822.
       This section makes changes to projects authorized in TEA-
     21.
     Senate Bill
       Sec. 1835, Sec. 1836.
       These sections make changes to projects authorized in TEA-
     21.
     Conference Substitute
       The Conference agrees to accept all technical changes 
     provided in the sections from both bodies.

                        Subtitle H--Environment


  SEC. 1801. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES

     House Bill
       Sec. 1114.
       Subsections (a) and (b) codify the existing Ferry Boat 
     Discretionary Program authorized in Section 1064 of ISTEA. 
     Subsection (c) requires the Secretary to establish a national 
     ferry database. It is the Committee's intent that the 
     information collected and maintained in this database will be 
     used as part of the decision making process for funding 
     allocations under this program.
     Senate Bill
       Sec. 1204.
       This bill codifies the Ferry Boat Program and requires the 
     Secretary to carry out a program for the construction of 
     ferry boats and ferry facilities in accordance with section 
     129(c). The section specifies projects to be given priority.
       In allocating these funds, the Secretary shall give 
     priority to ferry boat services that carry the greatest 
     number of passengers and vehicles, as well as those that 
     provide critical access to areas that are not well-served by 
     other modes of transportation.
     Conference Substitute
       The Conference agrees to accept and merge both provisions.


               SEC. 1802. NATIONAL SCENIC BYWAYS PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1602.
       This section amends section 162 of title 23, the National 
     Scenic Byways Program.
       Section 162 of title 23 is amended to recognize that the 
     Secretary already promotes a collection of National Scenic 
     Byways and All-American Roads as `America's Byways.' If State 
     and byway representatives reach consensus on establishing a 
     single designation category, then these amendments will 
     provide the Secretary with the authority to use any of the 
     three terms--National Scenic Byways, All-American Roads, or 
     America's Byways--as the single designation.
       A new subsection is added to authorize the Secretary to 
     form public-private partnerships to carry out technical 
     assistance, marketing, market research, and promotion with 
     respect to National Scenic Byways, All-American Roads, or 
     America's Byways. The National Scenic Byways and All-American 
     Roads currently are promoted collectively as America's 
     Byways.
     Conference Substitute
       The Conference adopts the Senate provision with the 
     modification to drop subsection (d) Research, Technical 
     Assistance, Marketing, and promotion.


              SEC. 1803. AMERICA'S BYWAYS RESOURCE CENTER

     House Bill
       Sec. 1811.
       This section reauthorizes the America's Byways Resource 
     Center. The Byways Resource Center provides technical support 
     and conducts educational activities for the National Scenic 
     Byways program. Technical support and educational activities 
     will provide local officials and organizations with 
     proactive, technical, and on-site customized assistance, 
     including training, communications (including a public 
     awareness series), publications, conferences, on-site 
     meetings, and other assistance considered appropriate to 
     develop and sustain Scenic Byways and All-American Roads.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


        SEC. 1804. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1812.
       This section authorizes the Secretary to make grants to 
     States for covered bridges that are listed or eligible for 
     listing on the National Register of Historic Places.
       Subject to the availability of appropriations, the 
     Secretary shall make grants to States demonstrating a need 
     for assistance in carrying out 1 or more historic covered 
     bridge projects described in this section.
     Conference Substitute
       The Conference adopts the Senate provision.

[[Page H7461]]

    SEC. 1805. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES

     House Bill
       Sec. 1820.
       This section specifies that any debris from a demolished 
     Federal-aid bridge or overpass can be used for beneficial 
     public use by Federal, State, and local governments.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification.


 SEC. 1806. ADDITIONAL AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES 
                        WITH INDIAN RESERVATIONS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1826.
       Section 1826 increases funding for roads that are adjacent 
     to or provide access to Indian reservations.
       This section increases funds that supplement maintenance 
     funds provided by the Bureau of Indian Affairs from 
     $1,500,000 to $1,607,547 for fiscal years 2005 through 2009. 
     The committee intends these funds to be shared equally by 
     States (except Arizona) that have Indian reservations larger 
     than 10 million acres. These funds shall be used for roads 
     that are adjacent to or provide access to Indian 
     reservations, as well as roads used by a school bus to 
     transport children to a school or Headstart program.
     Conference Substitute
       The Conference adopts the Senate provision.


          SEC. 1807. NONMOTORIZED TRANSPORTATION PILOT PROGRAM

     House Bill
       Sec. 1122(b).
       This section establishes two new programs--a Safe Routes to 
     School Program and a Nonmotorized Transportation Pilot 
     Program.
       Subsection (b) establishes a Nonmotorized Transportation 
     Pilot Program to construct a network of nonmotorized 
     transportation infrastructure facilities in four communities 
     to demonstrate the extent to which bicycling and walking can 
     carry a significant part of the transportation load. This 
     program is designed to develop the statistical information 
     necessary to properly evaluate the impact of investments in 
     nonmotorized travel and increases in pedestrian and bicycle 
     trips on congestion, energy usage, clean air and public 
     health. It recognizes that only complete, comprehensive and 
     connected networks of nonmotorized transportation facilities 
     will provide the opportunity for the pedestrian and bicycle 
     usage needed for the measurement of impacts.
       In making grants, the Secretary may select public agencies 
     that are suitably equipped and organized to carry out the 
     requirements of this subsection. An agency that receives a 
     grant under this subsection may work with and provide grant 
     funds to a nonprofit organization to assist in carrying out 
     the program.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification to name four communities to carry out the pilot 
     program. The Minnesota Department of Transportation shall 
     provide funds for the Minneapolis non-motorized pilot program 
     grant to Transit for Livable Communities.


             SEC. 1808. ADDITION TO CMAQ-ELIGIBLE PROJECTS

     House Bill
       Sec. 1210.
       This section clarifies that transportation system 
     management and operations are an eligible activity under this 
     program.
       Sec. 1833.
       This section specifies that advanced truck stop 
     electrification system is an eligible activity under CMAQ.
     Senate Bill
       Sec. 1612.
       Subsection (a) of section 1612 makes the following projects 
     and programs eligible activities under the CMAQ program: the 
     purchase of alternative fuel (as defined in the Energy Policy 
     Act of 1992) and biodiesel fuel; the purchase of integrated, 
     interoperable emergency communications equipment; diesel 
     retrofit technologies for on-road vehicles and non-road 
     vehicles and engines used in construction projects located in 
     ozone or particulate matter nonattainment or maintenance 
     areas and funded in whole or in part under Title 23; and 
     outreach activities to provide information and technical 
     assistance to the owners and operators of diesel equipment 
     and vehicles.
       Subsection (b) of this section ensures that States that 
     receive the minimum apportionment can use CMAQ money to fund 
     projects for the purpose of congestion mitgation or improving 
     air quality, instead of only being able to use CMAQ dollars 
     for projects that can be funded under the surface 
     transportation program.
       Subsection (c) of this section provides for reducing air 
     emissions from the construction equipment used in projects 
     funded under Title 23 by requiring emission reduction 
     strategies. The subsection includes requirements and 
     limitations to be applied in these strategies, but does not 
     affect a State's current authority under the Clean Air Act. 
     EPA is directed to publish guidance to support the 
     development of the strategies. Finally, the subsection 
     establishes a funding priority for diesel retrofits and other 
     cost-effective emission reduction activities identified in 
     the strategies developed under the section.
       Subsection (d) authorizes the State of Maine to use CMAQ 
     funds for the operation of passenger rail service between 
     Boston, Massachusetts, and Portland, Maine.
       Subsection (e) authorizes the State of Montana to use CMAQ 
     funds for the operation of public transit activities that 
     serve a nonattainment or maintenance area.
       Currently, CMAQ funds can be used for a wide array of 
     purposes designed to improve air quality, including 
     improvements to transit systems, capital improvements to ITS 
     projects, bicycle and pedestrian facilities, traffic flow 
     improvements, alternative fuel infrastructure, inspection and 
     maintenance programs, and shared ride services. The Clean Air 
     Act (CAA) and EPA encourage the use of alternative fuels to 
     assist areas in reducing criteria pollutants. CMAQ provisions 
     in TEA-21/ISTEA include a specific subsection authorizing the 
     use of CMAQ funds on alternative fuel infrastructure. Section 
     1612 further facilitates the use of alternative fuels by also 
     allowing purchase of alternative fuels with CMAQ funds. The 
     purchase of integrated, interoperable emergency 
     communications equipment with CMAQ funds is also authorized 
     under this subsection.
       Subsection (b) of this section remedies an oversight that 
     exists in the current law by providing States that receive 
     the minimum amount of CMAQ funding the ability to use the 
     money for air quality and congestion mitigation projects, if 
     they so choose. States that receive the minimum apportionment 
     either do not have nonattainment and maintenance areas, or 
     have a nonattainment or maintenance area with a small enough 
     population that they would only receive the guaranteed 
     minimum \1/2\ of 1 percent based on the population 
     apportionment formula. This section of the bill allows these 
     States to fund CMAQ-type projects with their CMAQ funds. It 
     allows these areas to fund projects that would otherwise be 
     eligible under section 149(b), regardless of the fact that 
     section 149(b) specifically states that the eligible projects 
     may only be funded in nonattainment or maintenance areas. 
     This change is in keeping with the overall purpose of the 
     CMAQ program.
       Just as the bill adjusts the CMAQ apportionment formula to 
     reflect the importance of reducing fine particulate matter 
     (PM2.5), section 1612(c) adjusts the list of eligible 
     activities to include cost-effective means of reducing PM2.5. 
     Specifically, this subsection addresses emissions from 
     construction equipment (both on-road and non-road) used in 
     Federally-funded highway projects. Reducing emissions from 
     long-term construction activities in the middle of a non-
     attainment area will provide great improvements to the 
     immediate non-attainment area. For example, in 2000, the 
     Massachusetts Department of Environmental Protection 
     estimated that in five years the diesel retrofit program 
     instituted at the Central Artery Tunnel Project in Boston 
     would reduce construction emissions, including PM2.5, by an 
     amount equivalent to eliminating 96 million truck miles or 
     removing 1,300 diesel-powered public buses for a year.
       These activities are also very cost-effective, particularly 
     as compared to the cost-effectiveness of other CMAQ-eligible 
     projects. For example, early estimates by the Environmental 
     Protection Agency are that retrofitting a diesel engine 
     bulldozer costs $15,000-20,000 per ton of fine particulate 
     matter reduced. In contrast, the Transportation Research 
     Board reported in its 2002 assessment of the CMAQ program 
     that traditional CMAQ activities cost significantly more per 
     ton of pollution reduced (bicycle and pedestrian facilities 
     at $84,100 per ton; telework programs at $251,800 per ton; 
     and park-and-ride lots at $43,000).
       The Senate is also aware that some confusion remains in DOT 
     and EPA field and regional offices regarding whether projects 
     to control the extended idling of vehicles, such as advanced 
     truck stop electrification projects, are eligible for CMAQ 
     funding. Such confusion has led to delays in project 
     approvals. Advanced truck stop electrification projects 
     dramatically reduce emissions, and therefore improve air 
     quality, by allowing long-haul drivers to turn off their 
     engines during extended stops (e.g., during USDOT-mandated 
     rest periods); mitigate congestion by providing drivers 
     timely information regarding road congestion and alternative 
     routes; enhance energy independence by reducing diesel fuel 
     consumption; enhance highway safety by providing drivers a 
     quieter, more restful sleep environment; and reduce noise 
     impacts to nearby neighborhoods. Furthermore, advanced truck 
     stop electrification projects can qualify for CMAQ funding, 
     whether they are implemented through public-private 
     partnerships; involve private ownership of land, project 
     facilities or other physical assets, emission reduction 
     credits and offsets; or are located on public or private land 
     or rights-of-way. Such programs are clearly authorized under 
     section 108(f)(1)(A)(xi) of the Clean Air Act (42 U.S.C. 
     7408(f)(1)(A)(xi) and associated Federal guidance (65 Fed. 
     Reg. 9040 (Feb. 23, 2000)). Therefore, the committee directs 
     the Secretary of Transportation and the Administrator of the 
     Environmental Protection Agency to issue

[[Page H7462]]

     guidance to all appropriate Federal, State and local agencies 
     that interpret and implement CMAQ and/or Clean Air Act 
     programs informing such agencies as to the foregoing.
       Section 1613 requires the Secretary to encourage States and 
     metropolitan planning organizations (MPOs) to consult with 
     State and local air quality agencies in nonattainment and 
     maintenance areas on the estimated emissions reductions from 
     proposed congestion mitigation and air quality improvement 
     programs and projects.
       The purpose of the Congestion Mitigation and Air Quality 
     Improvement program is to help States meet their air quality 
     goals of attaining or maintaining the air quality standards. 
     This section has been added to acknowledge that State and 
     local air quality agencies have valuable input with regard to 
     which projects can best serve this purpose in their 
     particular areas, and their participation in selecting 
     projects, while not mandated, is to be encouraged. States, 
     MPOs, and transit agencies, in consultation with State and 
     local air quality agencies, are encouraged to work 
     cooperatively in developing criteria for project selection 
     and in making decisions over which projects and programs 
     to fund under the CMAQ program.
       Section 1614 requires DOT to evaluate and assess a 
     representative sample of CMAQ projects in consultation with 
     EPA, maintain and disseminate a database of CMAQ projects, 
     and consider the recommendations and findings of the NAS CMAQ 
     report in consultation with EPA.
       Evaluation and information sharing are important aspects of 
     the CMAQ program, and should be used to direct CMAQ funding 
     toward the most cost-effective projects and programs. CMAQ 
     funding can be used to innovative projects that contribute to 
     improved air quality. If a particular type of project is 
     successful in achieving emissions reductions, the goals of 
     the program are furthered if that information is shared 
     widely with other nonattainment and maintenance areas. DOT, 
     in consultation with EPA, must consider the NAS report 
     recommendations and finding to improve the operation and 
     evaluation of the program. The committee's interest is to 
     ensure that the information from previous effort and expense 
     is used wisely.
     Conference Substitute
       The Conference adopts Senate provisions with additions and 
     modifications. First, the Conference includes authorization 
     to use CMAQ funds in areas that are required to prepare and 
     file with the Administrator maintenance plans under the Clean 
     Air Act. This provision is intended to benefit those areas 
     that were designated nonattainment under the 1-hour ozone 
     standard, which was revoked in June 2005, but are designated 
     attainment for the new 8-hour ozone standard. These areas 
     still must file maintenance plans for a period of time and 
     while that is a requirement, the areas will be eligible to 
     receive CMAQ funds.
       The adopted language amends the eligibility requirements to 
     limit eligibility of transportation control measures and 
     projects under section 108(f)(1)(A) of the Clean Air Act to 
     those that are likely to contribute to a high level of 
     effectiveness in reducing air pollution, where sufficient 
     information is available in the database established by this 
     section to make a determination of their relative 
     effectiveness. The language also clarifies that only 
     transportation systems management and operations that 
     mitigate congestion and improve air quality are eligible 
     activities.
       The requirement for States to develop emission reduction 
     strategies, with the accompanying considerations, limitations 
     and EPA guidance to support the strategies, is not adopted. 
     EPA is still directed to publish guidance regarding diesel 
     retrofit technologies and supporting technical information.
       The Senate language establishing a CMAQ funding priority is 
     amended to include cost-effective congestion mitigation 
     activities, in addition to diesel retrofits and other cost-
     effective emission reduction activities. The substitute 
     clarifies that the priority need only apply to funds a State 
     receives based on its population in nonattainment or 
     maintenance areas. A State receiving the minimum 
     apportionment under the program need not consider the 
     priority when determining how to distribute that portion of 
     CMAQ funds apportioned to the State to raise the State's 
     funding to the minimum apportionment level. The priority is 
     further clarified to ensure that governmental agencies retain 
     existing authorities and roles in making final project 
     selections. These clarifications to the original Senate 
     priority language are intended to retain needed flexibility 
     in utilizing CMAQ funds while providing States with direction 
     to focus on cost-effectiveness as an important consideration 
     in distributing program funds.
       The Conference retains Senate language encouraging 
     interagency consultation on the estimated emission reductions 
     from proposed CMAQ projects and requiring the Secretary, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, to evaluate and assess a representative 
     sample of CMAQ projects for their effectiveness.
       The Conference adopts several CMAQ eligibility provisions 
     for certain States authorizing: use in Montana of CMAQ funds 
     for the operation of public transit activities that serve a 
     nonattainment or maintenance area; use in Missouri, Iowa, 
     Minnesota, Wisconsin, Illinois, Indiana, and Ohio of CMAQ 
     funds for the purchase of alternative fuel (as defined in 
     section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
     13211)) or biodiesel; use in Michigan of CMAQ funds for the 
     operation and maintenance of intelligent transportation 
     system strategies that serve a nonattainment or maintenance 
     area; use in Maine of CMAQ funds to support operation of 
     passenger rail service between Boston, Massachusetts, and 
     Portland, Maine; and use in Oregon of CMAQ funds to support 
     operation of passenger rail service between Portland, Oregon 
     and Eugene, Oregon.

                       Subtitle I--Miscellaneous


  SEC. 1901. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING FUNDING 
                          SOURCES IN TITLE 23

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1903.
       Section 154 of the Federal-Aid Highway Act of 1987 (23 
     U.S.C. 101 note; 101 Stat. 209) establishes the basis for 
     erecting signs at Federally assisted highway projects 
     identifying the source and amount of funding being used. This 
     section transfers the provision to 23 U.S.C. 321 and makes a 
     needed conforming amendment.
     Conference Substitute
       The Conference adopts the Senate provision.


                    SEC. 1902. DONATIONS AND CREDITS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1820.
       Section 323 of title 23 is amended to give States and local 
     governments additional flexibility to match Federal funds and 
     expedite project implementation.
       This provision expands section 323 to include the value of 
     donated services provided by local government employees to be 
     credited to the non-Federal share for projects funded under 
     title 23 funds.
     Conference Substitute
       The Conference adopts the Senate provision.


      SEC. 1903. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1904.
       This section sets forth the ``Buy America'' provision and 
     designates it as 23 U.S.C. 321. The provision makes non-
     substantive, conforming amendments to the text needed because 
     of the transfer, simplifies the text, and deletes an executed 
     report requirement.
     Conference Substitute
       The Conference agrees with language from both the House and 
     Senate bills.


                  SEC. 1904. STEWARDSHIP AND OVERSIGHT

     House Bill
       Sec. 1105.
       This section amends the Financial Plan portion of section 
     106 of title 23 requiring states with a project that costs 
     $500 million or more to submit an annual financial plan.
     Senate Bill
       Sec. 1802.
       This section requires the Secretary to establish an 
     oversight program to monitor the effective and efficient use 
     of funds authorized under title 23, with a specific focus on 
     financial integrity and project delivery.
       The Secretary shall require the States to annually certify 
     the adequacy of their financial management systems and 
     project delivery systems to meet all requirements for 
     financial integrity. As part of the financial integrity 
     oversight, the Secretary is required to develop minimum 
     standards for estimating project costs and to periodically 
     evaluate States' practices for estimating project costs, 
     awarding contracts, and reducing project costs. States are 
     required to determine that subrecipients of Federal funds 
     have sufficient accounting controls and project delivery 
     systems.
       Under section 1802, recipients of Federal financial 
     assistance are required to prepare an annual financial plan 
     for projects that receive $100,000,000 or more in Federal 
     financial assistance and that are not subject to the 
     requirements for major projects.
       This section also mandates debarment of contractors who 
     have been convicted of fraud related to Federal-aid highway 
     or transit programs and suspension of contractors who have 
     been indicted for offenses relating to fraud. In addition, it 
     requires that portions of monetary judgments won in Federal 
     criminal and civil cases against contractors pertaining to 
     Federal-aid highway and transit program fraud be shared with 
     the State or local transit agency injured by the fraud.
       Finally, this section requires a value engineering 
     analysis, as defined in this section, for all projects over 
     $25 million and bridge projects over $20 million.
     Conference Substitute
       The Conference agrees to accept provisions from both the 
     House and Senate with modifications. The Secretary is 
     required to establish an oversight program to monitor the 
     effective and efficient use of funds with a specific focus on 
     financial integrity and project delivery. States will have to 
     annually certify their financial management systems and 
     project delivery systems to meet all requirements for 
     financial integrity.

[[Page H7463]]

       The conference adopted the House provision to require a 
     project sponsor who receives Federal financial assistance and 
     who has a total project cost of $500,000,000 or more be 
     required to submit a project management plan and an annual 
     financial plan for projects to the Secretary or for any 
     project as determined by the Secretary.
       Finally, this section requires a value engineering analysis 
     for any project on the Federal-aid system with an estimated 
     cost of $25 million or more, for bridge projects $20 million 
     or more, or for any other project the Secretary determines to 
     be appropriate.


             SEC. 1905. TRANSPORTATION DEVELOPMENT CREDITS

     House Bill
       Sec. 1841.
       This provision allows states to use toll credits toward the 
     states' match of a project.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


         SEC. 1906. GRANT PROGRAM TO PROHIBIT RACIAL PROFILING

     House Bill
       Sec. 1810.
       On February 27, 2001, in the Address to a Joint Session of 
     Congress, President George W. Bush declared that racial 
     profiling is ``wrong and we will end it in America''. The 
     President issued a Memorandum for the Attorney General that 
     directed the Attorney General to review the use of Federal 
     law enforcement authorities use of race in conducting stops, 
     searches, and other investigative procedures. In particular, 
     the President asked the Attorney General to work with 
     Congress to develop methods or mechanisms to collect any 
     relevant data from Federal law enforcement agencies and to 
     work in cooperation with state and local law enforcement 
     agencies in order to asses the extent and nature of any such 
     policies.
       In response to the efforts of the President to end the use 
     of racial profiling, this section establishes a new incentive 
     grant program to encourage states to enact and to enforce 
     laws that prohibit the use of racial profiling in the 
     enforcement of traffic laws on Federal-aid highways. The 
     incentive grant program will assist the states with the 
     compilation of data to support efforts to eliminate the use 
     of race or ethnicity as a key factor in whether to make a 
     traffic stop.
       Subsection (a) authorizes the Secretary to make a grant to 
     a State that has enacted and is enforcing a law that 
     prohibits the use of racial profiling in the enforcement of 
     traffic laws on Federal-aid highways. To be eligible for a 
     grant, a State must maintain and allow public inspection of 
     statistical information for each motor vehicle stop in the 
     state showing the race and ethnicity of the driver and any 
     passengers. Also, a State may receive a grant if the State 
     provides assurances satisfactory to the Secretary that the 
     State is undertaking activities that will lead to compliance 
     with the requirements to this section.
       Subsection (b) authorizes the eligible activities for which 
     a grant may be used by the State. In the case of a state 
     eligible for a grant under subsection (a) (1), the grant may 
     be used for: collecting and maintaining of data on traffic 
     stops; evaluating the results of the data; and developing and 
     implementing programs to reduce the occurrence of racial 
     profiling. An eligible State receiving a grant by providing 
     assurances to the Secretary that the State is undertaking 
     activities that will lead to compliance with this section may 
     use the grant for any eligible activity under this section. 
     The collection, maintenance, and evaluation of data relating 
     to traffic stops could be used to determine whether race has 
     been a key factor in motor vehicle stops. According to the 
     report published by the Comptroller General entitled Racial 
     Profiling, more information is needed to determine the extent 
     to which race, as opposed to other factors, is a key factor 
     for traffic stops.
       Subsection (c) clarifies the meaning of racial profiling as 
     it pertains to making routine or spontaneous law enforcement 
     decisions, such as ordinary traffic stops. The racial 
     profiling provisions under this section is not intended to 
     affect the ability of law enforcement officers from 
     considering race or ethnicity whenever there is trustworthy 
     information available that links persons of a particular race 
     or ethnicity to an identified criminal incident, scheme, or 
     organization.
       Subsection (d) limits the maximum amount for which a state 
     may receive a grant to not more than 5 percent of the amount 
     authorized in a fiscal year to carry out this section. A 
     state that provides assurances to the Secretary that the 
     state is undertaking activities that will lead to compliance 
     with the requirements of this section may not receive a grant 
     in more than two fiscal years.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


       SEC. 1907. PAVEMENT MARKING SYSTEMS DEMONSTRATION PROJECTS

     House Bill
       Sec. 1808.
       This section directs the Secretary to conduct demonstration 
     projects in Alaska and Tennessee to study the impacts of 
     increasing the minimum width for pavement markings from four 
     inches to six inches and report the results to Congress by 
     June 30, 2009.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


SEC. 1908. INCLUSION OF CERTAIN ROUTE SEGMENTS ON THE INTERSTATE SYSTEM 
                                AND NHS

     House Bill
       Sec. 1839.
       This section amends 1105 (e)(5) of ISTEA to designate US 41 
     in Wisconsin as I-41.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       This provision was added in conference to makes two changes 
     to section 1105 of ISTEA and to designate segments of the 
     Interstate System and routes on the National Highway System.


           SEC. 1909. FUTURE OF SURFACE TRANSPORTATION SYSTEM

     House Bill
       Sec. 1123.
       This section establishes two commissions, one to study 
     future revenue sources to support the Highway Trust Fund and 
     another to study the future of the Interstate Highway System. 
     Both commissions are established using the same criteria for 
     the selection of the members. This section also amends 
     section 101 of title 23 to include a declaration of policy 
     regarding the study of the Interstate Highway System.
       The Commission on Future Revenue Sources to Support the 
     Highway Trust Fund will study alternative short-term sources 
     of revenue for the Highway Trust Fund, as well as evaluating 
     alternative long-term sources of revenue to support the 
     Highway Trust Fund. When studying the long-term sources, the 
     Commission is directed to consider the findings, conclusions, 
     and recommendations of a recent study completed by the 
     Transportation Research Board of the National Academy of 
     Sciences on alternatives to the user fee to support highway 
     financing.
       The Commission is directed to develop ways to generate 
     revenues to accomplish the requirements of section 1125; 
     oversee a comprehensive investigation of alternatives to 
     replace the user fee as the principal source of revenue for 
     the Highway Trust Fund; consult with the Secretaries of 
     Transportation and Treasury to ensure that their views 
     concerning essential revenue alternatives are understood; 
     consider State transportation agencies views on alternative 
     revenue sources for the Highway Trust Fund; and make specific 
     recommendations regarding their findings and necessary 
     actions to Congress.
       When considering alternative sources of revenue, the 
     Commission shall address the advantages or disadvantages of 
     alternative revenue sources and identify the most promising 
     revenue sources to support long-term financing requirements. 
     The Commission shall also establish a time frame for which 
     the necessary actions must be taken and a broad transition 
     strategy to move from the current user fee base to new 
     funding mechanisms, including the time frame for the 
     transition strategy.
       Not later than September 30, 2005, the Commission shall 
     transmit to Congress a report on revenues to support actions 
     necessary to meet the requirements of section 1125. The 
     Commission has until September 30, 2006 to transmit to 
     Congress a report on the alternative long-term sources of 
     revenue for the Highway Trust Fund.
       The Commission on the Future of the Interstate Highway 
     System will study the current condition and future of the 
     Dwight D. Eisenhower National System of Interstate and 
     Defense Highways (the ``Interstate System''). The study will 
     include a conceptual plan with alternative approaches for the 
     future of the Interstate System and will assure that the 
     Interstate System will continue to serve its National needs.
       The Commission is directed to consider the views of State 
     transportation agencies and make specific recommendations 
     regarding design standards, Federal policies, and legislative 
     changes that must be made to assure that national interests 
     in meeting future needs are addressed.
       When conducting the study, the Commission is specifically 
     directed to address all issues that could impact the 
     Interstate system including, demographics; usage; natural 
     disasters; design standards; system-wide needs; potential 
     expansion, upgrades, or other changes; community values; 
     environmental issues; and system performance.
       The Commission has until September 30, 2006 to transmit to 
     Congress a report on the results of the study.
     Senate Bill
       Sec. 1202.
       Actions under this section shall address the future 
     transportation needs in the interest of preserving and 
     enhancing the surface transportation system to meet the needs 
     of the United States for the 21st Century.
       Section 101 of title 23 is amended by changing the 
     declaration of policy to include additional language to 
     support the transportation needs of the 21st century. The 
     Secretary shall conduct a complete investigation and study of 
     the current conditions and the future needs of the surface 
     transportation system. This section describes the

[[Page H7464]]

     specific issues to be addressed and what shall be reported to 
     the Committee on Environment and Public Works of the Senate 
     and the Committee on Transportation and Infrastructure of the 
     House of Representatives.
     Conference Substitute
       The Conference adopts language from both the House and 
     Senate provisions. This section establishes a 12 member 
     commission comprised of individuals with knowledge and 
     experience in the area of surface transportation policy and 
     revenue who will make recommendations to Congress about the 
     future transportation policy considerations that will need to 
     be considered in future legislation. The Commission will 
     conduct a comprehensive, thorough study of current and future 
     needs of the surface transportation system, short and long 
     term revenue sources and alternatives, other forms of revenue 
     that might be needed, and the impact changing dynamics will 
     have upon the Highway Trust Fund and other revenue sources. A 
     plan to address these needs will be presented in coordination 
     with the Secretary and other government entities across the 
     United States.


  SEC. 1910. MOTORIST INFORMATION CONCERNING FULL SERVICE RESTAURANTS

     House Bill
       Sec. 1803.
       This section requires the Secretary to do a rulemaking to 
     determine whether to give priority to full service 
     restaurants on at least two of the panels for highway food 
     service signs.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


   SEC. 1911. APPROVAL AND FUNDING FOR CERTAIN CONSTRUCTION PROJECTS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1829.
       This provision allows the State of Georgia to receive 
     project approval by the Secretary for the project stated in 
     the bill. This project was previously listed on the State's 
     Transportation Improvement Plan and was erroneously removed, 
     subsequently, not eligible for project approval.
     Conference Substitute
       The Conference adopts the Senate provision.


                   SEC. 1912. LEAD AGENCY DESIGNATION

     House Bill
       Sec. 1819.
       This section specifies that a specific agency in California 
     be the lead agency for a highway project authorized in 1991.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


              SEC. 1913. BRIDGE CONSTRUCTION, NORTH DAKOTA

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1832.
       This provision increases the Federal share for a specific 
     bridge project in North Dakota from 80 percent to 90 percent.
     Conference Substitute
       The Conference adopts the Senate provision.


                SEC. 1914. MOTORCYCLIST ADVISORY COUNCIL

     House Bill
       Sec. 1831.
       This section establishes an advisory council to address 
     relevant highway infrastructure issues as they relate to 
     motorcyclists.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                      SEC. 1915. LOAN FORGIVENESS

     House Bill
       Sec. 1818.
       This section specifies that a loan has satisfied its 
     repayment obligations.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                    SEC. 1916. TREATMENT OF OFF RAMP

     House Bill
       Sec. 1817.
       This section specifies that an off-ramp in California meets 
     the requirements of title 23 that govern the approval of the 
     placement of ramps off a Federal-aid Highway.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference agrees to the House provision. It is the 
     Committee's intent that notwithstanding any other provision 
     of law, the New Harbor Boulevard North Off-Ramp project along 
     the Interstate 405 Collector-Distributor Road in Costa Mesa, 
     California (Susan Street Slip Ramp) is hereby deemed to 
     satisfy all Federal requirements, and the California State 
     Department of Transportation shall authorize any final 
     environmental, engineering, or design analyses necessary to 
     approve, as expeditiously as possible, construction of the 
     project consistent with applicable California State 
     Operational and Safety standards.


                 SEC. 1917. OPENING OF INTERSTATE RAMPS

     House Bill
       Sec. 1212.
       This section provides for opening a ramp connecting I-495 
     and Arena Drive in the State of Maryland.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference agrees to House provision with a 
     modification to that the State DOT certifies to the Secretary 
     that the opening of this ramp does not present a safety risk.


    SEC. 1918. CREDIT TO STATE OF LOUISIANA FOR STATE MATCHING FUNDS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1828.
       This provision allows the State of Louisiana to receive a 
     credit in an amount equal to the cost of any planning, 
     engineering, design, or construction work carried out by the 
     State on any project numbered 202 under section 1602 of TEA-
     21.
     Conference Substitute
       The Conference adopts the Senate provision.


                       SEC. 1919. ROAD USER FEES

     House Bill
       Sec. 1813.
       The issue of future financing of the Highway Trust Fund is 
     a critical one that Congress must begin to address. The Trust 
     Fund is currently financed primarily through fuel excise 
     taxes and certain truck taxes. When the Trust Fund was 
     established in the 1950s, it was legitimate to have the gas 
     tax serve as a surrogate for road usage and be the basis for 
     the user-pays system of the federal highway program. But with 
     the advent of hybrid cars, alternative fuels, the potential 
     for fuel cell technology, increased fuel efficiency and other 
     technological developments, the relationship between the gas 
     tax and road usage is diminishing.
       On July 16, 2002, the Subcommittee on Highways, Transit, 
     and Pipelines held a hearing on this and related topics. 
     Testimony was received from representatives of the Public 
     Policy Center of the University of Iowa regarding research 
     that was then in progress, though now completed, to develop a 
     new approach for charging vehicles that travel on the public 
     roads. A consortium of the Federal Highway Administration and 
     15 state departments of transportation funded the study. The 
     purpose of the study was to evaluate how intelligent 
     transportation system technology (GPS and on-board computers, 
     smart cards and collection centers) can be used to assess 
     mileage-based road user charges.
       This section provides funding and authorization for the 
     Secretary to conduct a pilot project to test the technology 
     and feasibility of the system. It is contemplated that 
     various cars will be equipped with the technology in 
     different regions of the country with a diverse set of 
     drivers. An important element of the study is measuring the 
     public acceptance of such a system and to ensure that privacy 
     concerns of drivers are met.
       The finding of this study will provide useful information 
     as the Congress strives to identify a funding source to 
     finance the federal-aid highway programs that is stable, 
     accurate, fairer and more flexible than the current gas tax.
     Senate Bill
       The Senate has a comparable provision in title V of the 
     Senate passed bill.
     Conference Substitute
       The Conference adopts the House provision.


        SEC. 1920. TRANSPORTATION AND LOCAL WORKFORCE INVESTMENT

     House Bill
       Sec. 1836.
       This section expresses the sense of the Congress that 
     Federal transportation projects should facilitate and 
     encourage the collaboration between interested persons to 
     help leverage scarce training and community resources and to 
     help encourage local participation in the building of 
     transportation projects.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                   SEC. 1921. UPDATE OF OBSOLETE TEXT

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1901.
       Letting of Contracts: This amendment deletes the obsolete 
     exception.
       Fringe and Corridor Parking Facilities: The amendment would 
     substitute a meaningful reference for the obsolete term.
       Repeal of obsolete sections of title 23: This section 
     repeals obsolete sections of title 23: Priority Primary 
     Routes (23 U.S.C. 147); Development of a National Scenic and 
     Recreational Highway (23 U.S.C. 148); and Access

[[Page H7465]]

     Highways to Public Recreational Areas on Certain Lakes (23 
     U.S.C. 155).
     Conference Substitute
       The Conferees adopts the Senate provision.


      SEC. 1922. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1905.
       This section makes several technical amendments to section 
     140 of title 23.
       Technical changes made include:
       Eliminating gender-based language;
       Clarifying that funding made available to carry out this 
     section has the same broad availability as the source from 
     which the funds are made available (an STP takedown);
       Removing the $2.5 million funding cap on highway 
     construction and technology training programs established for 
     fiscal year 1976 as no longer necessary;
       Correcting a typographical error; and
       Clarifying the purpose and intent of subsection (d) by 
     modifying the title to remove the reference to Indian 
     contracting.
     Conference Substitute
       The Conference adopts the Senate provision.


       SEC. 1923. TRANSPORTATION ASSETS AND NEEDS OF DELTA REGION

     House Bill
       Sec. 1806.
       This section authorizes the Secretary to contract with the 
     Delta Regional Authority (DRA) to conduct a study on the 
     Delta region's transportation assets and needs for all modes 
     of transportation, including passenger and freight 
     transportation. This section also directs the DRA to report 
     to Congress the results of the study and establish a regional 
     strategic plan to implement the report's recommendations.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                  SEC. 1924. ALASKA WAY VIADUCT STUDY

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1831.
       This provision requires the Secretary to study and report 
     to Congress the damage of the Viaduct from the Nisqually 
     earthquake in Seattle, WA.
     Conference Substitute
       The Conference adopts the Senate provision.


                 SEC. 1925. COMMUNITY ENHANCEMENT STUDY

     House Bill
       Sec. 1835.
       This section directs the Secretary to make a grant to, or 
     enter into a cooperative agreement or contract with, a 
     national organization representing architects who have 
     expertise in the design of a wide range or transportation and 
     infrastructure projects to conduct a study on the role of 
     well-designed transportation projects in promoting community 
     enhancement.
     Senate Bill
       Sec. 1833.
       This section directs the Secretary to make a grant to, or 
     enter into a cooperative agreement or contract with, a 
     national organization who have expertise in the design of a 
     wide range or transportation and infrastructure projects to 
     conduct a study on the role of well-designed transportation 
     projects in promoting community enhancement.
     Conference Substitute
       The Conference adopts the House provision.


                    SEC. 1926. BUDGET JUSTIFICATION

     House Bill
       Sec. 1801.
       This section requires the Department of Transportation and 
     each agency therein to submit to the Committee on 
     Transportation and Infrastructure a budget justification 
     concurrently with the President's Annual Budget submission.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with a 
     modification to add the Committee on Environment and Public 
     Works to also receive a copy of the budget justification.


  SEC. 1927. 14TH AMENDMENT HIGHWAY AND 3RD INFANTRY DIVISION HIGHWAY

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1524.
       This provision requires the Secretary to conduct a study 
     and report on the construction of a route linking cities in 
     Georgia to cities in Mississippi and Tennessee.
     Conference Substitute
       The Conference adopts the Senate provision.


           SEC. 1928. SENSE OF CONGRESS REGARDING BUY AMERICA

     House Bill
       Sec. 1834.
       The Committee is concerned that the intent of Congress in 
     the original Buy America (P.L. 97-424 Sec. 165) is being 
     misinterpreted on federally funded bridge projects. The Buy 
     America provision provides that domestic iron and steel be 
     used in federal transportation projects unless its use would 
     increase the ``overall project contract'' by more than 25 
     percent. The problem that is emerging in the highway bridge 
     industry is that project managers are attempting to 
     circumvent the Buy America requirement by breaking bridge 
     projects into component parts and applying the 25% test 
     separately to each of the component parts, rather than to the 
     entire bridge project as required by law. The intent of the 
     Buy America/domestic content law was to ensure that when 
     taxpayer money is invested on direct federal government 
     procurement and infrastructure projects, these expenditures 
     stimulate U.S. production and employment. This provision is 
     intended to end any confusion or misinterpretation of the law 
     by making clear that it is the Sense of Congress that the Buy 
     America test applies to the overall bridge project.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Committee is concerned that the States are 
     inconsistently interpreting certain Buy America provisions of 
     Federally-funded highway projects. To clear up these 
     inconsistencies, we are reiterating our intent concerning the 
     proper application of the ``minimal use'' exception to Buy 
     America in these projects.
       ``Minimal use'' of foreign steel and iron materials is only 
     allowed on a project using Federal highway funds when the 
     cost of the steel and iron materials does not exceed the 
     higher of (a) 0.1 percent of the total contract cost or (b) 
     $2,500. For the purpose of determining compliance with this 
     ``minimal use'' exception, the ``combined project cost'' of 
     the materials is to be used. ``Combined project cost'' is the 
     unit cost as shown in the executed contract, multiplied by 
     the quantity of units on the project. The contractor's cost 
     of the actual material is irrelevant and is not to be 
     considered. This procedure is to be followed with respect to 
     procurements involving both prime contractors and 
     subcontractors, so that the cost to the subcontractor of 
     materials supplied to a prime contractor under a project 
     is not to be considered, but rather, the amount being 
     charged to the prime contractor by the subcontractor for 
     the materials.
       For the purpose of this provision, if a contract contains a 
     quantity of five units of a particular bid item, if even one 
     of the units is of foreign origin, the total ``combined 
     project cost'' of all five units is to be used to determine 
     compliance with the ``minimal use'' requirement. In addition, 
     if any component of a bid item is foreign, the entire bid 
     item is considered foreign. In turn, the unit cost as shown 
     in the executed contract, multiplied by the quantity of units 
     used on the project, is to be used to determine compliance 
     with the ``minimal use'' requirement.
       For the purpose of this provision, the North American Free 
     Trade Agreement (NAFTA) has no effect. Iron and steel 
     products from Canada and Mexico are considered to be of 
     foreign origin.


  SEC. 1929. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE HIGHWAY

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1205.
       This section designates Interstate Highway 86 in the State 
     of New York as the Daniel Patrick Moynihan Interstate Highway 
     and the 3 mile segment of Interstate 86 between New York 
     State Route 15 in the vicinity of Painted Post, New York and 
     State Route 352 in the vicinity of Corning, New York as the 
     Amo Houghton Bypass.
     Conference Substitute
       The Conference adopts the Senate provision with a 
     modification to provide a separate section in law for each of 
     these requests.


    SEC. 1930. DESIGNATION OF THOMAS P. ``TIP'' O'NEILL, JR. TUNNEL

     House Bill
       Sec. 1814.
       This section designates that, in honor of his service to 
     the Commonwealth of Massachusetts and to the United States, 
     and in recognition of his contributions toward the 
     construction of the Central Artery project in Boston, 
     Massachusetts, the Central Artery Tunnel should be named as 
     the ``Thomas P. 'Tip' O'Neill, Jr. Tunnel''.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


              SEC. 1931. RICHARD NIXON PARKWAY, CALIFORNIA

     House Bill
       This section designates the segment of the Imperial Highway 
     located between California State Route 91 and Esperanza Road 
     to be known and designated as the Richard Nixon Parkway.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference adopts the House provision.

[[Page H7466]]

                     SEC. 1932. AMO HOUGHTON BYPASS

     House Bill
       Sec. 1838.
       This provision designates a 3-mile segment in New York as 
     the Amo Houghton Bypass.
     Senate Bill
       Sec. 1205(b).
       This provision designates a 3-mile segment in New York as 
     the Amo Houghton Bypass. Any reference in any way to this 
     highway segment shall be deemed to be a reference to the Amo 
     Houghton Bypass.
     Conference Substitute
       The Conference adopts the Senate provision.


                 SEC. 1933. BILL TAUZIN ENERGY CORRIDOR

                 SEC. 1934. TRANSPORTATION IMPROVEMENTS

     House Bill
       No comparable provision.
     Senate Bill
       No comparable provision.
     Conference Substitute
       This provision was added in conference to provide states 
     with such sums as necessary as required in this provision in 
     order to carry out projects in the table contained in 
     subsection (c) of this program.


                     SEC. 1935. PROJECT FLEXIBILITY

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference added this provision to provide States with 
     the flexibility to transfer funds from projects allocated 
     under this section to any other project in the state so long 
     as the funding for each project in this section is not 
     ultimately reduced.


                          SEC. 1936. ADVANCES

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference added this provision to allow states to 
     obligate funds from 104(b) to carry out any project 
     designated in any of sections 1301 (Projects of National and 
     Regional Significance), 1302 (Corridors), 1306 (Freight 
     Intermodal Pilot) and 1933 (Transportation Projects) as well 
     as for sections 117 (High Priority Projects) and 144(g) 
     Bridge Discretionary of title 23. The amount authorized to 
     obligate under this section shall not exceed the amount 
     authorized for that project and it can only be funded by 
     programs by which the project would be eligible. These funds 
     must be restored from funds allocated for that project.


                   SEC. 1937. ROADS IN CLOSED BASINS

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference included this provision to require the 
     Secretary to provide advancement or reimbursement under the 
     emergency relief program to North Dakota for the State to 
     carry out the construction of necessary improvements at 
     Devils Lake. These improvements shall be in accordance with 
     the options and needs identified in the ``Roadways Serving as 
     Water Barriers'' report dated May 2000, any needs relating to 
     Devils Lake identified after May 2000, and any monitoring, 
     study, or design or preliminary engineering associated with 
     evaluating or constructing the measures.


                         SEC. 1938. TECHNOLOGY

     House Bill
       Sec. 1829.
       This section encourages states to consider using a new 
     technology to detect cracks in bridges.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                            RV-FRIENDLY LOGO

       The conference applauds the FHWA for their commitment to 
     alleviating the concerns of RV users by alerting them to 
     facilities equipped to accommodate their special needs 
     through the use of an RV-friendly logo. The conference is 
     aware that states are beginning to enact regulations 
     concerning RV-friendly signage and believes it is important 
     for the FHWA to establish uniform road signs. The conference 
     encourages the FHWA to expedite approval of the new RV-
     friendly signage by immediately issuing an interim rule and 
     completing the process by September 30, 2006.


                          SOLID WASTE DISPOSAL

       This section amends the Solid Waste Disposal to require the 
     Administrator of the Environmental Protection Agency and each 
     agency head to take necessary actions to implement fully all 
     procurement requirements and incentives that provide for the 
     use of cement and concrete incorporating recovered mineral 
     component in cement or concrete projects. An agency head is 
     required to give priority to achieving greater use of 
     recovered mineral component for which it has not been 
     historically used or used minimally. This section also 
     requires the Administrator, in cooperation with the 
     Secretaries of Transportation and Energy, to conduct a study 
     to determine the extent to which current procurement 
     requirements may realize energy savings and environmental 
     benefits attainable with the substitution of recovered 
     mineral component in cement used in cement or concrete 
     projects. Additionally, this section requires the 
     Administrator, in consultation with other agency heads, to 
     establish criteria for the safe and environmentally 
     protective use of granular mine tailings from the Tar Creek, 
     Oklahoma Mining District, known as `chat', for cement or 
     concrete projects, and transportation projects, including 
     those that use asphalt, that are carried out using Federal 
     funds. In establishing the criteria, the Administrator is 
     required to consider current and previous uses of `chat,' and 
     any environmental and public health risks and benefits 
     derived from removal, transportation and use of `chat.'


                         CLARIFICATION OF DATE.

       This section restates, as a calendar date, a date in title 
     23 that currently is expressed as a reference to a date of 
     enactment of law, making it difficult to understand. No 
     change in the actual date is made.


                         DISCRETIONARY BRIDGES

       Of the amounts appropriated to the Bridge Discretionary 
     Program Section 1114(e) for the State of Vermont, Congress 
     intends that the State shall allocate $1,000,000 for the 
     Community Center Bridge in Springfield, VT; $5,000,000 for 
     the River Street Bridge in Rutland City; $4,500,000 for 
     Bridge 4 in Tunbridge, VT; $3,000,000 for Bridge 30 
     in Stockbridge, VT; $2,100,000 for Bridge 1 in Reading, 
     VT; $6,000,000 for the bridge over the New Haven River on 
     VT RT 116 in Bristol, VT; $4,000,000 for Bridge 9 in 
     Cornwall, VT; $3,900,000 for Bridge 31 in Bethel, VT; and 
     $2,500,000 for the East Street Bridge in Huntington, VT.


                      STREETSCAPE, TRAIL AND ROAD

       Of the amounts appropriated in section 1934 for item # to 
     the State of Vermont for streetscape, multi-use trail, and 
     road improvements in Lamoille, Caledonia, Grand Isle and 
     Chittenden Counties, Congress intends that the State allocate 
     $500,000 for planning and construction of pedestrian walkways 
     in Morrisville, VT; $835,000 for construction of pedestrian 
     walkways in Stowe, VT; $1,000,000 for construction of a 
     multi-use trail in Hardwick, VT; $750,000 for streetscape 
     improvements in Jericho, VT; $330,000 for downtown street 
     improvements in Alburg, VT; and $585,000 for improvements to 
     Hogback Road in Waterville, Cambridge, and Johnson, VT.


                             SMALL BRIDGES

       Of the amounts appropriated in section 1934 for item # to 
     the State of Vermont for small bridge improvements, Congress 
     intends that the State shall allocate $500,000 for Bridge 15 
     in Granville, VT; $1,100,000 for Bridge 48 in Lincoln, VT; 
     $660,000 for Bridge 17 in Ripton, VT; $1,500,000 for Bridge 
     14 in Sunderland, VT; $940,000 for Bridge 31 in Readsboro, 
     VT; $1,600,000 for Bridge 16 and Bridge 17 in Burke, VT; 
     $770,000 for Bridge 24 in Montgomery, VT; $1,000,000 for 
     Bridge 3 in Stowe, VT; $730,000 for Bridge 30 in Albany, VT; 
     $1,290,000 for Bridge 61 in Barton, VT; $650,000 for Bridge 
     16 in Charleston, VT; $750,000 for Bridge 50 in Wallingford, 
     VT; $600,000 for Bridge 37 in Shrewsbury, VT; $730,000 for 
     Bridge 24 in Clarendon, VT; $760,000 for Bridge 37 in Cabot, 
     VT; $890,000 for Bridge 56 in Guilford, VT; $640,000 for 
     Bridge 33 in Jamaica, VT; $1,600,000 for Bridge 17 in 
     Newfane, VT; $2,700,000 for Bridge 50 in Woodstock, VT; 
     $490,000 for Bridge 8 in Barnard, VT; $2,000,000 for the 
     bridge on Bridge Street over the Stevens Branch of the 
     Winooski River in Barre Town, VT; $1,700,000 for Bridge 29 in 
     Saint Johnsbury, VT; $1,140,000 for Bridge 45 in Cavendish, 
     VT; $320,000 for Bridge 20 in Vershire, VT; $680,000 for 
     Bridge 25 in Reading, VT; $1,340,000 for Bridge 26 in New 
     Haven and Weybridge, VT; $810,000 for Bridge 63 in Chester, 
     VT; $980,000 for Bridge 34 in Corinth, VT; and $1,130,000 for 
     Bridge 22 in Bradford, VT.


                         WESTERN RAIL CORRIDOR

       Of the amounts appropriated in Section 1934 for item # to 
     the State of Vermont for improvements to the Western Rail 
     Corridor between Alburg, St Albans, Burlington, Middlebury, 
     Rutland, Manchester, Bennington and west to Hoosick Junction, 
     New York, priority shall be given to completing the 
     Middlebury Rail Spur, upgrading the rail line for passenger 
     service between Manchester, Rutland and Charlotte and 
     improving the movement of freight rail through major cities, 
     including Rutland.


                   GATEWAY RURAL IMPROVEMENT PROGRAM

       Section 1946 authorizes a new Gateway Rural Improvement 
     Program in Vermont to demonstrate the impact of a freight 
     transportation gateway program on a rural rail corridor. 
     Funding preferences shall be given to a corridor in Western 
     Vermont that includes, but is not limited to, the Middlebury 
     Rail Spur, Rutland rail improvements, St. Albans intermodal 
     facilities, and the Albany, Bennington, Rutland, Burlington & 
     Essex rail upgrades. User fees may be used to provide part or 
     all of the cost of a project under this section.


                            COVERED BRIDGES

       Of the amounts appropriated in section 1934 for item # to 
     the State of Vermont for the rehabilitation of historic 
     covered

[[Page H7467]]

     bridges, Congress intends that the State shall allocate 
     $450,000 for the Creamery/West Hill Covered Bridge in 
     Montgomery, VT; $450,000 for the Bowers Covered Bridge in 
     West Windsor, VT; $500,000 for the Quinlan Covered Bridge in 
     Charlotte, VT; $500,000 for the Gifford Covered Bridge in 
     Randolph, VT; $500,000 for the Worrall Covered Bridge in 
     Rockingham, VT; $450,000 for the Kingsbury Covered Bridge in 
     Randolph, VT; $1,500,000 for the Taftsville Covered Bridge in 
     Woodstock, VT; and $1,800,000 on the Pulp Mill Covered Bridge 
     in Middlebury-Weybridge, VT.


                      HIGHWAY DISCHARGE MITIGATION

       Of the amounts appropriated in section 1934 item # to the 
     State of Vermont, the Secretary shall allocate $3,000,000 for 
     the Vermont Local Roads Program in Colchester, VT for the 
     purpose of providing financial assistance grants to towns, 
     cities and villages in Vermont for projects to reduce water 
     pollution generated by, or directly associated with existing 
     public roads and road maintenance activities; and $3,000,000 
     for the Champlain Water District in Vermont for the purpose 
     of providing financial assistance to towns, cities and 
     villages in Chittenden County for water quality improvements 
     through projects to mitigate water pollution associated with 
     existing town roads, federal aid highways and road 
     maintenance activities.


                                TOLLING

       The provisions of the Express Lanes Program are intended to 
     give State departments of transporation maximum flexibility 
     to toll facilities on the Interstate System in order to (a) 
     manage high levels of congestion; (b) reduce emissions in 
     areas in nonattainment or maintenance for the Clean Air Act; 
     and, (c) finance the expansion of a highway, for the purpose 
     of reducing traffic congestion.


                       CMAQ EXPANDED ELIGIBILITY

       This provision provides the State of Montana with expanded 
     ability to use CMAQ funds for transit operating assistance. 
     In addition to all currently eligible projects, Montana CMAQ 
     funds may be used for the operation of public transit 
     activities that serve a nonattainment or maintenance area 
     beyond the current US Department of Transportation 
     restriction of three years. In addition, as referenced in 
     this provision, activities that serve a nonattainment or 
     maintenance area include activities that are undertaken 
     partly within and partly outside a nonattainment or 
     maintenance area.


                         GOING-TO-THE-SUN ROAD

       The $50 million in funding provided by this section for 
     work to resurface, repair, rehabilitate, and reconstruct the 
     Going to the Sun Road is intended to accelerate completion of 
     the needed reconstruction work on that important park road. 
     These funds are not sufficient to complete the project, 
     however, and these funds are intended to supplement, not 
     supplant funding from the park roads and parkways program for 
     this important project.


                           BEARTOOTH HIGHWAY

       This provision provides flexibility for the State of 
     Montana to use funds allocated for the development and 
     construction of the US 212 Red Lodge North highway in this 
     bill to first be used for the emergency repair of the 
     Beartooth Highway. The Beartooth Highway has suffered extreme 
     damage from 13 mudslides in the spring of 2005. The Montana 
     Department of Transportation has submitted and obtained 
     approval for federal Emergency Relief (ER) funding--estimated 
     to be $24 million for this project. It is intended that the 
     use of the funds on the Beartooth Highway will not require a 
     non-Federal match, as they are being applied to an emergency 
     relief project. Upon reimbursement by the Federal Highway 
     Administration, a match will be required when the funds are 
     applied to the US 212 project.
       Upon reimbursement of the ER application by the Federal 
     Highway Administration, this provision allows the reimbursed 
     funds to then be transferred to the US 212 Red Lodge North 
     project for use in the development and construction of that 
     highway.


                PRIORITIES PROVISION IN DIESEL RETROFIT

       Under new 49 USC 149(f)(3) States shall give priority to 
     certain listed items in distributing CMAQ funds apportioned 
     to them under 23 USC 104(b)(2)(B) and (C) or new 23 USC 
     104(b)(2)(D). This paragraph does not apply to the use of 
     funds apportioned under the CMAQ minimum apportionment 
     provision (former 23 USC 104(b)(2)(D)) or to the use of any 
     other funds.
       The listed priorities are: (1) cost-effective diesel 
     retrofits and other cost-effective emission reduction 
     activities, taking into consideration air quality and health 
     effects; and (2) cost-effective congestion mitigation 
     activities that provide air quality benefits. Each of these 
     items, to qualify for priority, must be ``cost-effective.'' 
     If a State determines that it does not have cost-effective 
     opportunities to undertake the listed activities, the 
     priorities do not apply. The State could then use applicable 
     CMAQ funds for other CMAQ eligible activities, such as 
     particulate reduction or transit initiatives.
       Moreover, even if a State has the opportunity to pursue 
     cost effective activities listed in this paragraph, it does 
     not mean that the State must expend all or most of its 
     applicable CMAQ funds on those activities, to the exclusion 
     of other possible uses of those funds. Conferees expect that 
     other priorities can still be pursued with applicable funds. 
     Priority is not absolute and exclusive. That is one reason 
     why the paragraph also includes language establishing that 
     this paragraph is not intended to disturb existing 
     authorities and roles in making project selections.
       In short, this new provision on CMAQ priorities is intended 
     to give more funding focus to the listed priorities while 
     continuing to provide states needed flexibility in utilizing 
     the funds that are subject to this paragraph.


                        NIGHT-TIME CONSTRUCTION

       Presently the federal government is investing more than $30 
     billion annually on roadway construction projects. This 
     significant investment is creating increased motorist 
     exposures to roadway work zones. Since 1997 the number of 
     fatalities in roadway work zones for both motorists and 
     construction workers has grown by over 70 percent. With 
     nearly 1,200 fatalities and 40,000 injuries occurring 
     annually in roadway construction zones, work zone safety is a 
     serious public health concern.
       Since most road work today involves reconstruction, 
     rehabilitation and maintenance of existing roadways, it is 
     conducted adjacent to traffic. As a result, more and more 
     jurisdictions across the country are looking to night-time 
     construction as a way to reduce motorist delay and 
     inconvenience by scheduling work when traffic is lighter.
       The Committee is concerned about the impact of night-time 
     construction on motorists, workers and communities. Current 
     information is not comprehensive or well communicated to 
     public and private entities and individuals that need it 
     most.
       The Committee directs the Federal Highway Administration to 
     conduct and compile research on many aspects of night-time 
     road construction, including:
        Comparisons between work zone-related crash rates 
     daytime and night-time construction operations;
        Rates and frequencies of incidents caused by 
     drivers under the influence of alcohol, drugs and/or other 
     substances causing driver impairment;
        Rates and frequencies of incidents caused by 
     drivers and workers who are tired or sleep deprived;
        Impacts on worker health and welfare;
        Impacts on adjacent communities;
        Impacts on construction quality and work 
     schedules; and
        General impact on roadway construction worker 
     safety.
       The Committee directs the Federal Highway Administration to 
     report to the Committee two years after passage of this 
     legislation on the results of its research.


                    CATHODIC BRIDGE PROTECTION STUDY

       The issue of the increased cost to repair/replace concrete 
     bridges due to the corrosion of steel rebar in bridges caused 
     by exposure to a chlorine environment is a critical one that 
     Congress must begin to address. The Committee directs the 
     Secretary to study the application of cathodic protection 
     technology to concrete bridges in order to extend the life of 
     the bridge and reduce future repair costs.
       The Committee also directs the Secretary to report to 
     Congress on the results of any study.


              TRAFFIC CONTROL AT HIGHWAY-RAILWAY CROSSINGS

       With respect to increasing safety at grade crossings, the 
     Committee notes that 1,431 people have been killed in 11,860 
     accidents at public crossings with crossbuck devices during 
     the past ten years. The size, weight, and design of trains 
     prevent them from being able to stop and start as quickly as 
     an automobile or truck. Given the importance of safety at 
     highway-rail crossings, the Committee urges the Secretary of 
     Transportation to revise the Manual of Uniform Traffic 
     Control Devices and such other regulations and agreements of 
     the Federal Highway Administration as may be necessary to 
     require ``yield'' signs be installed at all public highway-
     rail crossings without automatic traffic control, save for 
     those crossings which, in the judgment of the roadway 
     authority, require ``stop'' signs, together with appropriate 
     advance warning signs at all crossings.
       In October of 2004, Federal Highway Administration (FHWA) 
     was requested to issue an interim order amending the Manual 
     on Uniform Traffic Control Devices to include a standard that 
     ``yield'' signs be installed at all public crossings with 
     passive devices, except at those which the roadway authority 
     deemed to require a ``stop'' sign based on an exhaustive 
     study contained in National Cooperative Highway Research 
     Program (NCHRP) Report 470. Considering that the NCHRP Report 
     470 was completed in at the end of 2001, the Committee urges 
     the Secretary to act immediately consider appropriate changes 
     to the Manual of Uniform Traffic Control Devices.


               HIGHWAY-TRANSIT FUNDING TRANSFER AUTHORITY

       In 1991, the Intermodal Surface Transportation Efficiency 
     Act (ISTEA) provided additional authority for states to 
     transfer Federal funds between highway and transit programs. 
     In 1998, Congress continued and expanded this transfer 
     authority. Many States have actively used this authority to 
     transfer Federal funds between highway and transit programs. 
     The committee believes it is important to review how the 
     States and public transit authorities have used this transfer 
     authority and directs the Government Accountability Office to 
     report to Congress on the use of this transfer authority by 
     the

[[Page H7468]]

     States and public transit authorities, the highway and 
     transit projects funded with these funds, and the U.S. 
     Department of Transportation administrative mechanisms to 
     track the use of these transferred funds. This report should 
     be completed as soon as practicable and no later than two 
     years after the date of enactment.


                    REQUEST FOR TECHNICAL ASSISTANCE

       The Committee notes that, in the Design Standards Manual 
     for construction of Interstates and their improvement, the 
     requirements for control of access at ramp terminals in urban 
     areas is 100 feet and 300 feet in rural areas. The Committee 
     instructs the Federal Highway Administrator within 180 days 
     to provide an explanation to the Committee for the different 
     treatment of rural and urban access control at ramp 
     terminals.

                        TITLE II--HIGHWAY SAFETY


               SEC. 2001. AUTHORIZATION OF APPROPRIATIONS

     House Bill
       Sec. 2001.
       This section authorizes funds for section 402 highway 
     safety grant program; occupant protection incentive grants 
     under section 405; alcohol-impaired driving countermeasures 
     incentive grants under section 410; state traffic safety 
     information improvements under section 412; the national 
     driver register; and the high visibility enforcement program.
       The Secretary is provided the flexibility to transfer any 
     amounts remaining available under the occupant protection 
     incentive grant program, the alcohol-impaired driving 
     countermeasures program, and the state traffic safety 
     information system improvements program to ensure, to the 
     maximum extent possible, that each state receives the maximum 
     amount of incentive grants under these programs for which the 
     state is eligible.
     Senate Bill
       Sec. 7212.
       This section would authorize amounts from the Highway Trust 
     Fund for safety programs administered by NHTSA. The aggregate 
     proposed authorization is approximately $696 million for FY 
     2006, $711 million for FY 2007, $728 million for FY 2008, and 
     $746 million for FY 2009. In addition, this section provides 
     that, if revenue to the Highway Trust Fund for a given fiscal 
     year is lower than the amounts authorized in subtitle A, such 
     a reduction would not affect the highway safety programs 
     provided for in this bill. Finally, this section would 
     provide for a proportional increase for NHTSA's grant 
     programs if revenue to the Highway Trust Fund increases above 
     currently authorized amounts.
     Conference Substitute
       This section authorizes funds for section 402 highway 
     safety grant program; highway safety research and development 
     under section 403, occupant protection incentive grants under 
     section 405; safety belt performance grants under section 
     406; state traffic safety information improvements under 
     section 408; alcohol-impaired driving countermeasures 
     incentive grants under section 410; the national driver 
     register; the high visibility impaired driving and seat belt 
     enforcement program; motorcyclist safety; child safety and 
     child booster seat safety incentive grants; and 
     administrative expenses.
       The Secretary is provided the flexibility to transfer any 
     amounts remaining available under the occupant protection 
     incentive grants, alcohol-impaired driving countermeasures 
     program, and the state traffic safety information system 
     improvements program to ensure, to the maximum extent 
     possible, that each state receives the maximum amount of 
     incentive grants under these programs for which the state is 
     eligible.


                   sec. 2002. highway safety programs

     House Bill
       Sec. 2009.
       This section adds driver fatigue to the list of safety 
     factors that must be included in state highway safety 
     programs in accordance with uniform guidelines promulgated by 
     the Secretary under section 402. The Committee wishes to 
     acknowledge the contribution of ``Maggie's Law'' to its 
     deliberations on this issue.
       Sec. 2014.
       This section adds `11-15 passenger vans used for school 
     transportation purposes' to the list of safety factors that 
     must be included in state highway safety programs in 
     accordance with uniform guidelines promulgated by the 
     Secretary under section 402.
       Sec. 2016.
       This section increases the minimum State apportionments of 
     402 funds from one-half of one percent to three-quarters of 
     one percent.
     Senate Bill
       Sec. 7213.
       This program is reauthorized for FYs 2006 through 2009 at 
     an average annual funding level of $217 million, a 40 percent 
     increase from the TEA-21 level, and increases the minimum 
     share of Indian tribes through the Bureau of Indian Affairs 
     from \3/4\ of one percent to 2 percent. These grants, 
     allocated according to a formula, fund States' safety 
     programs, such as safety belts, drunk driving, motorcycle, 
     pedestrian and bicycle safety, emergency medical services, 
     traffic law enforcement and roadway safety.
     Conference Substitute
       The Conference incorporates House provisions into Senate 
     structure with modifications, including removal of ``15 
     passenger van'' language and consolidation of House and 
     Senate ``driver fatigue'' language. Senate language is also 
     modified for ``unsafe driving behavior,'' ``administration of 
     state programs,'' and ``law enforcement chase training.'' 
     Minimum 402 funding for Indian tribes and States is 
     increased.


        sec. 2003. highway safety research and outreach program

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7214.
       This program is reauthorized for FYs 2006 through 2009 at 
     an average annual funding level of $142 million. These 
     programs focus on the research and development of safety 
     countermeasures related to impaired driving, occupant 
     protection, traffic law enforcement and criminal justice, 
     licensing, motorcycle, pedestrian, bicycle, teen drivers and 
     emergency medical services. The States use this research to 
     model their safety programs for the most impact on saving 
     lives and reducing injuries. This section also would provide 
     $24 million a year to NHTSA to launch national advertising 
     campaigns to increase seat belt use and reduce drunk driving 
     during holiday periods. Launching these advertising campaigns 
     at the national level is much more cost effective than 
     individual States buying advertising at the local level.
     Conference Substitute
       The Conference adopts the Senate provision with the 
     addition of motorcycle safety to the list of research 
     priorities and moves the national advertising campaigns to a 
     new stand alone section.


            sec. 2004. occupant protection incentive grants

     House Bill
       Sec. 2002.
       This section extends the occupant protection incentive 
     grant program through the term of the legislation. A state 
     may become eligible for these grants by either having a 
     seatbelt usage rate of at least 85 percent or by implementing 
     at least four of the six safety incentives under the program.
     Senate Bill
       Sec. 7216.
       This is a new program funded at an average annual level of 
     $154 million. The program would grant money to States that 
     enact a new primary seat belt law and to States that have 
     already enacted a primary seat belt law. States that have 
     already enacted a primary seat belt law would receive a one-
     time grant over the life of the bill equal to 250 percent of 
     their FY 2003 grant from section 402. States that enact a new 
     primary seat belt law after December 31, 2002 would receive a 
     one-time grant over the life of the bill equal to 500 percent 
     of their FY 2003 grant from section 402. Most of this grant 
     money may be used for highway safety construction 
     purposes.
     Conference Substitute
       The Conference adopts elements of both the House and Senate 
     provisions by creating two seat belt related programs. This 
     provision outlines an extension of the current 405 Occupant 
     Protection Incentive Grants Program.


           sec. 2005. grants for primary safety belt use laws

     House Bill
       Sec. 2002.
       This section extends the occupant protection incentive 
     grant program through the term of the legislation. A state 
     may become eligible for these grants by either having a 
     seatbelt usage rate of at least 85 percent or by implementing 
     at least four of the six safety incentives under the program.
     Senate Bill
       Sec. 7216.
       This is a new program funded at an average annual level of 
     $154 million. The program would grant money to States that 
     enact a new primary seat belt law and to States that have 
     already enacted a primary seat belt law. States that have 
     already enacted a primary seat belt law would receive a one-
     time grant over the life of the bill equal to 250 percent of 
     their FY 2003 grant from section 402. States that enact a new 
     primary seat belt law after December 31, 2002 would receive a 
     one-time grant over the life of the bill equal to 500 percent 
     of their FY 2003 grant from section 402. Most of this grant 
     money may be used for highway safety construction purposes.
     Conference Substitute
       The Conference adopts elements of both the House and Senate 
     provisions by creating two seat belt related programs. This 
     section adopts the Senate provision for one-time grants to 
     states that pass or have passed primary seat belt laws with 
     the modification to allow a state to also become eligible for 
     the grant by demonstrating at least 85 percent seat belt use 
     rates for two consecutive years and by changing the grant 
     amounts to 200 percent for the FY 2003 section 402 grant for 
     states with existing primary belt laws and 475 percent for 
     states that enact new laws.


    sec. 2006. state traffic safety information system improvements

     House Bill
       Sec. 2004.
       This section authorizes a new section 412 program for state 
     traffic safety information

[[Page H7469]]

     system incentive grants to encourage states to adopt and 
     implement effective safety data systems. The Secretary is 
     required to determine the model data elements necessary to 
     analyze trends in crash occurrences, rates, outcomes, and 
     circumstances. To receive a grant, a state must comply with 
     safety data system requirements under this section and use 
     the grant only to implement such requirements.
     Senate Bill
       Sec. 7221.
       This is a new discretionary grant program, funded at a $45 
     million level each FY 2006 through 2009 to encourage States 
     to improve their traffic records systems by increasing the 
     efficiency and uniformity of data collection and access 
     through upgrading data collection systems. The purpose is to 
     develop a more accurate database of vehicle crash 
     characteristics that will allow traffic safety professionals 
     to better identify traffic safety problems, and develop 
     effective countermeasures on a more timely basis.
     Conference Substitute
       The Conference adopts the Senate provision modified to 
     remove the requirement for data audit/assessment as a 
     requirement for eligibility in the first year.


          sec. 2007. alcohol-impaired driving countermeasures

     House Bill
       Sec. 2003.
       This section extends the alcohol-impaired driving 
     countermeasures program over the term of the legislation. The 
     criteria for eligibility under the Basic Grant A program is 
     expanded to included states that have an alcohol-related 
     fatality rate of 0.5 or less per 100 million vehicle miles 
     traveled. The eligibility criteria for Basic Grant A is 
     amended, under the administrative license revocation 
     requirement, to permit a state to allow a first time offender 
     who has had his or her license suspended to operate a motor 
     vehicle, after a 15-day suspension period, to and from 
     employment, school, or an alcohol treatment program if an 
     ignition interlock device is installed on the vehicle. 
     Similarly, a state may allow a repeat offender who has had 
     his or her license suspended or revoked to operate a motor 
     vehicle, after a 45-day suspension or revocation period, to 
     and from employment, school, or an alcohol treatment program 
     if an ignition interlock device is installed on the vehicle.
       Under the Basic Grant A criteria, four new eligibility 
     requirements are added in lieu of eliminating the young adult 
     drinking awareness program. The new requirements are a 
     judicial and prosecutorial outreach program, a self-
     sustaining drunk driving prevention program, programs for 
     effective alcohol rehabilitation, and a program for 
     impounding vehicles of drunk drivers. States may become 
     eligible for Basic Grant A by implementing at least six 
     eligibility criteria for fiscal years 2005 and 2006 and at 
     least seven criteria for the following fiscal years.
       The criteria for the eligibility for a Basic Grant B is 
     amended to permit a state to receive a grant if its alcohol-
     related fatality rate is 0.8 or more per 100 million vehicle 
     miles traveled and the state establishes a task force to 
     evaluate and recommend changes to the state's drunk driving 
     programs. The supplemental grant program is repealed.
     Senate Bill
       Sec. 7220.
       This program is reauthorized for FYs 2006 through 2009 at 
     an average annual funding level of $132 million. States can 
     qualify for a grant by enacting four out of the following 
     seven criteria in FY 2006 and FY 2007, and by enacting five 
     out of the following seven criteria in FY 2008 and FY 2009. 
     States may choose from the following menu of policy options: 
     (1) impaired driving check points and saturation patrols; (2) 
     outreach to judges and prosecutors to improve prosecution of 
     drunk driving cases; (3) create an information system for 
     government use that tracks drunk driving arrests and 
     convictions; (4) reduce for two years in a row the percentage 
     of fatally injured drivers with a blood alcohol content of 
     0.08 percent; (5) a program that returns State and local 
     fines collected for drunk driving offenses back into drunk 
     driving prevention programs; (6) enact a law that creates 
     greater penalties for drivers convicted of driving with a 
     blood alcohol content of 0.15 percent or higher; and (7) 
     create specialized courts for handling only impaired driving 
     cases. The ten States with the highest rate of impaired 
     driving fatalities will be eligible for a separate grant.
     Conference Substitute
       The Conference combines elements from both the House and 
     Senate provisions, establishing a program whereby States are 
     eligible for grants by either achieving an alcohol- related 
     fatality rate of 0.5 or less per 100 million vehicle miles 
     traveled, or by carrying out 3 programs in 2006; 4 programs 
     in 2007, and 5 programs in 2008 and 2009. The list of 
     programs includes: check point, saturation patrol; 
     prosecution and adjudication outreach; BAC testing; high-risk 
     drivers; alcohol rehabilitation and DWI courts; underage 
     drinking; administrative license revocation; self-sustaining 
     impaired driving program. Additionally, the ten States with 
     the highest rate of impaired driving fatalities will be 
     eligible for a separate grant by implementing a plan approved 
     by the Secretary to reduce impaired driving. The grant for 
     these 10 states each year is intended to be working capital 
     to reinvigorate their impaired driving enforcement programs, 
     and for those states not already receiving the basic grant to 
     work towards eventually qualifying for the basic grant in 
     future years by reaching the fatality rate goal or 
     implementing the programs in (c).


                    SEC. 2008. NHTSA ACCOUNTABILITY

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7222.
       This section would create a framework for advancing NHTSA's 
     management of its grant programs and its program 
     recommendations to the States. It would require a review of 
     each State highway safety program at least once every three 
     years along with recommendations on how each State may 
     improve the management and oversight of its grant activities. 
     It would also develop management and program review 
     guidelines for the NHTSA Regional Offices. The General 
     Accounting Office will conduct a study on the effectiveness 
     of the advice and recommendations given to the States by 
     NHTSA. In addition, this section would increase NHTSA's 
     accountability to the public by requiring the agency to post 
     for public review on its website documents such as the NHTSA 
     management review and program review guidelines.
     Conference Substitute
       The Conference adopts the Senate provision.


             SEC. 2009. HIGH VISIBILITY ENFORCEMENT PROGRAM

     House Bill
       Sec. 2005.
       The Secretary is required to establish a program to support 
     national impaired driving mobilization and enforcement 
     efforts and national safety belt mobilization and enforcement 
     efforts, including the purchase of national paid 
     advertisements to support such efforts.
     Senate Bill
       Sec. 7214(b).
       This subsection of Section 403 would provide funding for 
     NHTSA to launch national advertising campaigns to increase 
     seat belt use and reduce drunk driving during holiday 
     periods. Launching these advertising campaigns at the 
     national level is much more cost effective than individual 
     States buying advertising at the local level.
     Conference Substitute
       The Conference adopts the Senate provision as a stand-alone 
     program, including a subsection that requires that funds only 
     be used for specified national law enforcement campaigns, 
     advertising, and annual evaluations. Nothing in this section 
     prohibits additional money later appropriated by Congress, or 
     additional funds from NHTSA, from being used for additional 
     support for the national campaigns.


                     SEC. 2010. MOTORCYCLIST SAFETY

     House Bill
       Sec. 2008.
       This section establishes a motorcycle safety incentive 
     grant program for states that adopt and implement effective 
     programs to reduce the number of single- and multi-vehicle 
     crashes involving motorcycles.
     Senate Bill
       Sec. 7224.
       This section would create a new section 414 of title 23 
     U.S.C. to provide grants to States to implement motorcycle 
     safety training programs based on specific criteria, 
     including improvements to motorcyclist safety training, 
     program delivery, public awareness.
     Conference Substitute
       The Conference adopts the House provision modified to 
     include Senate language on minimum grant amounts to eligible 
     states and a requirement for the Secretary to develop model 
     language for educating drivers on how to safely share roads 
     with motorcyclists.


       SEC. 2011. CHILD SAFETY AND BOOSTER SEAT INCENTIVE GRANTS

     House Bill
       Sec. 2007.
       This section authorizes a child safety and child booster 
     seat incentive grant program for the benefit of states that 
     enact or enforce a law requiring children riding in passenger 
     vehicles to be secured in child safety seats or child booster 
     seats. States may use grants under this section only to carry 
     out child safety seat and child booster seat programs, 
     including education, training, enforcement, and the purchase 
     and distribution of child restraints to families that cannot 
     otherwise afford them. Each state to which a grant is made 
     under this section must transmit a report to the Secretary 
     indicating how the grant funds were expended and identifying 
     the specific programs supported by the grant.
     Senate Bill
       Sec. 7223.
       This section would authorize grants to States to implement 
     Anton's Law, which is aimed at increasing the use of booster 
     seats for small children.
     Conference Substitute
       The Conference adopts the House provision with a change to 
     allow no more than 50 percent of funding to be used for 
     purchasing safety restraints. The purchase of child safety 
     restraints is directed at helping low-income families.

[[Page H7470]]

                         SEC. 2012. SAFETY DATA

     House Bill
       Sec. 2011.
       This section requires the Secretary to collect data and 
     compile statistics on accidents involving motor vehicles 
     being backed up that result in fatalities and injuries. The 
     Secretary is required to transmit a report to Congress not 
     later than January 1, 2009, on these accidents and any 
     recommendations regarding measures to be taken.
     Senate Bill
       Sec. 7254.
       This section requires NHTSA to study technologies for 
     automobiles that would reduce injuries and deaths caused by 
     cars and trucks backing up.
     Conference Substitute
       The Conference adopts the House provision.


              SEC. 2013. DRUG-IMPAIRED DRIVING ENFORCEMENT

     House Bill
       Sec. 2013.
       This section directs the Secretary to conduct a study on 
     drug impaired driving and to develop a model statute for 
     States. The section also requires the Secretary to submit a 
     report to Congress regarding the research and findings not 
     later than 18 months after enactment.
     Senate Bill
       Sec. 7214(b)(1).
       This section requires NHTSA to conduct a study on the 
     effects of controlled substances on driving.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications including the definition of ``illicit 
     substances'' and requiring the Secretary and the National 
     Institutes of Health to jointly provide a report to Congress 
     on the problem of drug-impaired driving.


           SEC. 2014. FIRST RESPONDER VEHICLE SAFETY PROGRAM

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7605.
       This section requires the Secretary to develop a program 
     and list of best practices to promote compliance with State 
     and local laws to increase the safe and efficient operation 
     of first responder vehicles.
     Conference Substitute
       The Conference adopts the Senate provision with a change 
     from the Secretary ``shall'' to ``should.''


                  SEC. 2015. DRIVER PERFORMANCE STUDY

     House Bill
       Sec. 2012.
       This section directs the Secretary to conduct a study on 
     the risks associated with glare to oncoming drivers and to 
     submit a report of findings and recommendations to Congress 
     not later than 18 months after enactment.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


 SEC. 2016. RURAL STATE EMERGENCY MEDICAL SERVICES OPTIMIZATION PILOT 
                                PROGRAM

     House Bill
       Sec. 2015.
       This section directs the Secretary to conduct a study on 
     the use of geo-coded data for highway accidents and injuries 
     in order to improve EMS resource allocation and distribution 
     in rural areas.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


        SEC. 2017. OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7217.
       This section would amend section 406 by adding an older 
     driver research and demonstration program and a law 
     enforcement training program to train law enforcement 
     personnel in police chase techniques that are consistent with 
     guidelines issued by the International Association of Chiefs 
     of Police.
     Conference Substitute
       The Conference adopts the Senate provision but makes 
     language a stand-alone provision rather than a codified 406 
     program. Language for police chase training is modified to 
     reflect that NHTSA shall provide ``guidance and support'' for 
     the training.


                     SEC. 2018. SAFE INTERSECTIONS

     House Bill
       Sec. 2017.
       This section outlines penalties for the unauthorized sale 
     or use of traffic signal preemption transmitters.
     Senate Bill
       Sec. 1410.
       This section outlines penalties for the unauthorized sale 
     or use of traffic signal preemption transmitters.
     Conference Substitute
       The Conference adopts the House provision with technical 
     modifications to make language consistent with Title 18, 
     United States Code.


    SEC. 2019. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE TECHNICAL 
                               CORRECTION

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7215.
       This section would make a minor technical correction to 
     section 404(d) of title 23 U.S.C.
     Conference Substitute
       The Conference adopts the Senate provision.


     SEC. 2020. PRESIDENTIAL COMMISSION ON ALCOHOL-IMPAIRED DRIVING

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 1411.
       Sense of the Senate in support of establishing a 
     Presidential Commission on Alcohol-Impaired Driving to 
     further change the culture of alcohol-impaired driving on our 
     Nation's highways.
     Conference Substitute
       The Conference adopts the Senate provision modified to make 
     the provision a sense of the Congress, to include the 
     motorcycle industry on the proposed Commission, and to change 
     appropriate references from ``drunk'' to ``alcohol-impaired'' 
     driving.


    SEC. 2021. SENSE OF THE CONGRESS IN SUPPORT OF INCREASED PUBLIC 
AWARENESS OF BLOOD ALCOHOL CONCENTRATION LEVELS AND DANGERS OF ALCOHOL-
                            IMPAIRED DRIVING

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 1412.
       Sense of the Senate in Support of Increased Public 
     Awareness of Blood Alcohol Concentration Levels and Dangers 
     of Alcohol-Impaired Driving.
     Conference Substitute
       The Conference adopts the Senate provision modified to make 
     the provision a sense of the Congress and to change 
     appropriate references of ``drinking and driving'' to 
     ``alcohol-impaired driving.''

           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS


                         SEC. 3001. SHORT TITLE

     House Bill
       Sec. 3001.
       Subsection (a) provides that this title be cited as the 
     Federal Public Transportation Act of 2005. Subsection (b) 
     provides that amendments in this title, unless otherwise 
     specified, are made to title 49 of the United States Code.
     Senate Bill
       Sec. 6001.
       The title to be cited as the Federal Public Transportation 
     Act of 2005.
     Conference Substitute
       Adopts Senate proposal.


    SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES CODE; UPDATED 
                              TERMINOLOGY

     House Bill
       Sec. 3001.
       Subsection (b) amends chapter 53 of title 49, United States 
     Code by striking ``mass transportation'' and replacing it 
     with ``public transportation'', reflecting the broader 
     applicability of transit services beyond urban areas.
     Senate Bill
       Sec. 6002.
       Subsection (a) provides that amendments in this title, 
     unless otherwise specified, are made to title 49 of the 
     United States Code. Subsection (b) amends chapter 53 of title 
     49, United States Code by striking ``mass transportation'' 
     and replacing it with ``public transportation.''
     Conference Substitute
       Adopts Senate proposal.


              SEC. 3003. POLICIES, FINDINGS, AND PURPOSES

     House Bill
       Sec. 3002.
       This section and subsequent sections of the bill change the 
     terminology used to describe the federal transit programs, 
     which have grown far beyond the original mission and 
     orientation of ``urban renewal'' in the Federal Transit 
     Administration's organic statute, the Urban Mass 
     Transportation Act of 1964. Today, the federal transit 
     programs also provide vital transportation services to rural 
     and other non-urban constituencies. The title change and 
     subsequent legislative changes to chapter 53, title 49 United 
     States Code in which the terms ``mass transit'' or ``mass 
     transportation'' are replaced by ``public transportation'' 
     reflect this evolution.
     Senate Bill
       Sec. 6003.
       Section 5301(a) states that it is in the economic interest 
     of the United States to encourage and promote the development 
     of transportation systems because they maximize mobility and 
     minimize transportation-related fuel consumption and air 
     pollution. The findings in section 5301(b) are updated to 
     reflect Census 2000 data. Subsection 5301(e) is amended to 
     apply current requirements to preserve the environment and 
     important historical and cultural assets throughout chapter 
     53, rather than only to capital programs

[[Page H7471]]

     carried out under sections 5309 and 5310. Terms throughout 
     the section are updated for clarity.
     Conference Substitute
       Adopts the House language in subsection 5301(a) with the 
     inclusion of economic interest. The Census updates from the 
     Senate language are adopted. The remaining provisions of the 
     section are the same in both bills.


                         SEC. 3004. DEFINITIONS

     House Bill
       Sec. 3003.
       This section includes amendments to definitions that apply 
     generally to chapter 53 of title 49, United States Code. 
     These changes include adding new eligibilities for federal 
     capital transit funding. Newly eligible uses for these 
     capital funds include: (1) acquiring, constructing, 
     relocating, and renovating intercity bus stations and 
     terminals; (2) crime prevention and security projects 
     (including security training for personnel and 
     conducting emergency response drills); (3) establishing a 
     debt service reserve fund for bond payments when such 
     bonds are used for the purpose of financing an eligible 
     transit project; and (4) mobility management activities 
     and projects. Mobility management activities and projects 
     improve the coordination among public transportation and 
     other transportation service providers through short-range 
     planning and management activities, such as buying 
     computer software that matches public transportation 
     riders and non-emergency medical and other human services 
     clients to transportation services. Directly providing 
     public transportation services is not an eligible capital 
     expense under this definition. The definition of 
     ``urbanized area'' is revised to reflect the Department of 
     Commerce's role in designating urbanized areas via the 
     decennial Census. Under current law, the terms ``mass 
     transportation,'' ``public transportation,'' and 
     ``transit'' are interchangeable. Under the changes made in 
     this section, these three terms are still synonymous. 
     However, ``public transportation'' becomes the principal 
     defined term.
     Senate Bill
       Sec. 6004.
       This section includes amendments to definitions that apply 
     generally to chapter 53 of title 49, United States Code. 
     These changes include adding new eligibilities for federal 
     capital transit funding. Newly eligible uses for these 
     capital funds include: (1) acquiring, constructing, 
     relocating, and renovating intercity bus stations and 
     terminals; (2) crime prevention and security projects 
     (including security training for personnel and conducting 
     emergency response drills); and (3) establishing a debt 
     service reserve fund for bond payments when such bonds are 
     used for the purpose of financing an eligible transit 
     project. The Senate Banking Committee believes that improved 
     integrated, interoperable, emergency communications 
     infrastructure is one way for transit operators to improve 
     the response to emergency situations, and that such 
     expenditures are eligible capital expenditures under chapter 
     53. The Senate bill includes mobility management activities 
     under the section 5307 urbanized area formula grant program. 
     As defined in this section, mobility management activities 
     and projects tailor public transportation services to 
     specific markets and manage demand for public transportation 
     to help enhance ridership in a cost-effective and efficient 
     manner. The definition of public transportation is amended to 
     codify current practice of providing transportation service 
     that serves a specific urbanized or rural area and its 
     environs. Except for specific exceptions, such as the 
     expanded eligibility of intercity bus facilities for capital 
     funding and the ongoing intercity bus service under section 
     5311(f), intercity bus or rail services are not public 
     transportation. The definition of ``urbanized area'' is 
     revised to reflect the Department of Commerce's role in 
     designating urbanized areas via the decennial Census. Under 
     current law, the terms ``mass transportation,'' ``public 
     transportation,'' and ``transit'' are interchangeable. Under 
     the changes made in this section, these three terms are still 
     synonymous. However, ``public transportation'' becomes the 
     principal defined term.
     Conference Substitute
       Adopts the House language regarding new eligibilities for 
     federal capital transit funding, including the more limited 
     definition of mobility management activities and projects as 
     being directly related to improved coordination among public 
     transportation and other transportation service providers. 
     These new capital eligibilities apply to all programs under 
     chapter 53. The conferees believe that improved integrated, 
     interoperable, emergency communications infrastructure are 
     one way for transit operators to improve the response to 
     emergency situations, and that such expenditures are eligible 
     capital expenditures under this chapter. The definition of 
     public transportation has been amended to mean transportation 
     by a conveyance that provides regular and continuing general 
     or special transportation to the public, but does not include 
     schoolbus, charter, or intercity bus transportation (except 
     under programs where intercity bus projects are made 
     specifically eligible), or intercity passenger rail 
     transportation provided by Amtrak or its successor entities. 
     The definition of ``urbanized area'' is revised to reflect 
     the Department of Commerce's role in designating urbanized 
     areas via the decennial Census. ``Public transportation,'' 
     ``mass transportation,'' and ``transit'' remain 
     interchangeable and synonymous. However, ``public 
     transportation'' becomes the principal defined term, in 
     recognition that the federal public transportation program 
     has evolved over time, and now covers rural and other non-
     urban constituencies, as well as urbanized areas.


            SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING

     House Bill
       Sec. 3004.
       The House bill consolidates current law metropolitan 
     planning provisions under sections 5303 and 5304 of title 49, 
     U.S.C. and under section 134 of title 23, U.S.C. into a 
     unified planning title for both transit and highways under 
     chapter 52 of title 49, U.S.C. For ease of reference, 
     subsection 5303(a) of title 49, U.S.C. is amended to reflect 
     that grants made under sections 5307-5311, 5316 and 5317 are 
     to be carried out in accordance with chapter 52. Subsection 
     5303(b) requires the Secretary to certify that metropolitan 
     planning organizations (MPOs) in transportation management 
     areas comply with all planning and other applicable 
     requirements in law in their transportation planning 
     activities. However, the Secretary may not withhold 
     certification of a transportation plan based on private 
     enterprise participation. This is a standing limitation in 
     existing law under section 5305(e)(3).
     Senate Bill
       Sec. 6005.
       The Senate bill consolidates all provisions for 
     metropolitan planning under section 5303 of title 49. The 
     bill maintains the requirement for separate transportation 
     plans and transportation improvement programs and requires 
     certification of the planning process every four years. The 
     Senate repeals the current law provision that allows a plan 
     to be certified by the Secretary regardless of the policies 
     and criteria an MPO or transit recipient establishes for 
     deciding the feasibility of private enterprise participation. 
     However, language is added under section 5306(a) of title 49 
     to clarify that local criteria will be the basis for such 
     decisionmaking. The current law provisions regarding the 
     scope of the planning process are amended to provide more 
     detail on how protection of the environment is to be 
     considered and adds a reference to planned growth patterns. A 
     new participation plan is established to afford parties who 
     participate in the metropolitan planning process a specific 
     opportunity to comment on the plan before its approval. MPOs 
     must certify that they have complied with their participation 
     plan before the transportation plan can be approved. A new 
     provision is added that requires the secretary to issue rules 
     regarding the publication of the projects in the 
     transportation improvement program for which funds have 
     actually been obligated. Section 5305 of title 49, U.S.C. is 
     repealed because provisions regarding Transportation 
     Management Areas are incorporated into metropolitan 
     transportation planning.
     Conference Substitute
       Adopts the Senate proposal, without the requirement that 
     MPOs must certify that they have complied with their 
     participation plan before the transportation plan can be 
     approved.


              SEC. 3006. STATEWIDE TRANSPORTATION PLANNING

     House Bill
       Sec. 3005.
       The House bill consolidates the metropolitan and statewide 
     planning provisions currently under title 23, U.S.C. and 
     chapter 53, title 49, U.S.C. into a unified planning title 
     for both transit and highways under chapter 52 of title 49, 
     U.S.C. For ease of reference, section 5304 of title 49, 
     U.S.C. is amended to reflect that grants made under sections 
     5307-5311, 5316 and 5317 are to be carried out in accordance 
     with chapter 52. Under current law (section 5323(l)), 
     statewide transit planning was subject to statewide highway 
     planning processes outlined in section 135 of title 23, 
     U.S.C.
     Senate Bill
       Sec. 6006.
       The Senate bill includes statewide planning requirements 
     explicitly under 49 U.S.C. 5304, rather than by reference to 
     section 135 of title 23 U.S.C. A new subsection (c) is added 
     to allow States to enter into compacts or agreements for the 
     purpose of formal planning cooperation and coordination for 
     projects with multi-State implications. A requirement is 
     added for States to consider the economic vitality for rural 
     areas as well as urbanized areas in statewide transportation 
     planning. The joint consideration of safety and security 
     factors in planning is broken out as separate factors, to 
     highlight heightened concerns with security at all levels of 
     Government. The current law provisions regarding the scope of 
     the planning process are amended to provide more detail on 
     how protection of the environment is to be considered. An 
     expanded publication of the statewide plan is required. 
     The update cycles for development and approval of 
     statewide transportation plans are set at 4 years.
     Conference Substitute
       Adopts the Senate proposal.


                      SEC. 3007. PLANNING PROGRAMS

     House Bill
       Sec. 3006.
       Metropolitan planning and statewide planning funding 
     provisions contained in current

[[Page H7472]]

     law sections 5303(g) and 5313(b) are moved into a unified 
     section on planning programs as the amended section 5305 of 
     49 U.S.C. The current law section 5305 pertains to 
     metropolitan planning requirements for transportation 
     management areas. These provisions are included under the 
     unified metropolitan planning sections of chapter 52.
       Subsections 5305(a), (b) and (c) establish the general 
     planning grant authority and purposes. The current law 
     definition of a State is retained (a State of the United 
     States, the District of Columbia, and Puerto Rico). 
     Subsection (d) describes the metropolitan planning grant 
     apportionment process. Subsection (e) describes the state 
     planning and research grant apportionment process. Subsection 
     (f) sets the Government's share of planning grant activity 
     costs at 80 percent. Subsection (g) describes the allocation 
     of planning funds made available under funding authorization 
     section 5338(c) between metropolitan planning and statewide 
     planning, using the same percentages set in current law 
     section 5338(c)(2)(C) (82.72 percent for metropolitan 
     planning and 17.28 percent for state planning and research). 
     In subsection (h), funds remain available for three years 
     after the fiscal year in which the funds are authorized, the 
     same period of availability as under current law.
     Senate Bill
       Sec. 6010.
       The Senate bill merges the existing Clean Fuels Formula 
     Program into the Bus and Bus Facilities Program and sets the 
     consolidated metropolitan and statewide planning grant 
     programs under 49 U.S.C. 5308. The current law limitation on 
     the definition of State is deleted, providing transportation 
     planning funds and responsibilities for the first time to the 
     U.S. Territories. A new planning capacity building program of 
     $5 million a year is established for metropolitan planning 
     organizations and transportation operators to plan, develop 
     and implement innovations and enhancements that support and 
     strengthen the planning process. This program is also 
     authorized and funded under the highway title and will be 
     carried out jointly by FTA and FHWA. The bill provides $20 
     million a year for alternatives analysis activities that are 
     now funded from the 49 U.S.C. 5309 New Starts program. The 
     Senate believes that it is inappropriate to fund alternatives 
     analysis under New Starts because that presumes that the 
     result of the locally preferred alternative will, in fact, be 
     a New Start. After these two new set-asides, the remaining 
     planning funds are distributed as by current law, with 82.72 
     percent for metropolitan planning and 17.28 percent for state 
     planning and research. The Government's share for planning 
     grant activities is set at 80 percent, and funds remain 
     available for three years after the fiscal year in which the 
     funds are authorized, the same period of availability as 
     under current law.
     Conference Substitute
       Adopts the House language restricting planning funds and 
     responsibilities to U.S. States, the District of Columbia, 
     and Puerto Rico. Adopts House language defining the prompt 
     allocation of planning funds by States to metropolitan 
     planning organizations to be made available within 30 days 
     after allocation to the State. Does not include an 
     alternatives analysis set-aside under the Planning Programs, 
     although a new stand-alone alternatives analysis program is 
     established under section 5339 of title 49, United States 
     Code. Planning funds will continue to be distributed as under 
     current law, with 82.72 percent for metropolitan planning and 
     17.28 percent for state planning.


              SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION

     House Bill
       Sec. 3007.
       This section title has been shortened to more clearly 
     reflect the provisions within. The text of section 5306 of 
     title 49, United States Code is not amended.
     Senate Bill
       Sec. 6008.
       Current language that prohibits decertification for failure 
     to meet the private sector participation requirements in 49 
     U.S.C. 5306 is not reenacted. The Senate bill adds clarifying 
     language to make clear that local criteria are to be the 
     basis for deciding on how to involve the private sector. A 
     rulemaking is required to implement all of the changes to the 
     statute made throughout the Senate bill on private sector 
     participation, including enhancements to the role of private 
     transportation providers in the planning process, changes in 
     funding eligibility, and funding allocations.
     Conference Substitute
       Adopts the Senate proposal clarifying that local criteria 
     are to be the basis for deciding how to involve the private 
     sector.


                SEC. 3009. URBANIZED AREA FORMULA GRANTS

     House Bill
       Sec. 3008.
       This section amends section 5307 of title 49, United States 
     Code, which contains provisions governing the eligibility and 
     procedures for urbanized area formula grants to transit 
     providers in areas of 50,000 and more in population. Two 
     existing law subsections are deleted. Subsection 5307(h) is 
     deleted as a technical cleanup, because streamlined 
     administrative procedures for track and signal equipment 
     certification have already been promulgated as directed in 
     the subsection. Subsection 5307(k) regarding transit 
     enhancement activities is also deleted, but the requirement 
     that one percent of urbanized area formula grant funds for 
     recipients in areas of over 200,000 be invested on 
     enhancement activities is retained, and added to the list of 
     grant recipient requirements in subsection 5307(d)(1).
       In paragraph (2), the existing extension of operating 
     flexibility in urbanized areas that were less than 200,000 
     under the 1990 Census, but increased to more than 200,000 in 
     the 2000 Census, is further extended through the end of 
     fiscal year 2004.
       Currently under subsection 5307(d), recipients are required 
     to certify that they have the legal, financial, and technical 
     capacity to carry out the program of projects for which they 
     are applying as an urbanized area formula grant. This is 
     amended in subparagraph (d)(1)(A) to additionally require 
     that recipients certify such legal, financial, and technical 
     capacity for the safety and security aspects of their program 
     of projects.
       Subsection 5307(e) regarding the Government's share of 
     costs is amended by deleting the 1985 baseline limitation on 
     local match revenues resulting from the sale of advertising 
     or concessions. Additionally, recipients are authorized to 
     use amounts received under service agreements with a State, 
     local social service agency, or private social service 
     organizations as local match. This creates an incentive to 
     transit agencies to better coordinate transportation services 
     with human service agencies that provide transportation 
     services.
       Section 5307(i) is redesignated as section 5307(h) and 
     amended to give the Secretary discretion to require annual 
     audits rather than mandate them.
       Subsection 5307(l) as redesignated, Relationship to Other 
     Laws, strikes subparagraph (1) and moves the provision 
     contained therein to the General Provisions on Assistance 
     under section 5323, to make the prohibition on making false 
     or fraudulent statements to the Government (18 U.S.C. section 
     1001) applicable to any Federal public transportation 
     grant program. A new paragraph (2) is added that exempts 
     non- supervisory transit employees from the Hatch Act 
     limitations relating to public election procedures for 
     government employees, if the Hatch Act applies only 
     because the employees' salaries are funded through Federal 
     grants under this section. This exemption will apply only 
     to employees in urbanized areas under 200,000 in 
     population, where up to 50 percent of the net project cost 
     may be derived from Federal grant funds. This codifies 
     existing Federal transit law.
       Subsection 3008(h) adds a new subsection 5307(m) regarding 
     the treatment of the United States Virgin Islands, which 
     shall be treated as an urbanized area for the purposes of 
     apportionments under section 5307.
     Senate Bill
       Sec. 6009.
       Private companies engaged in public transportation are 
     eligible subrecipients of Federal grants. Subsection 5307(a) 
     is revised to include definitions for `subrecipient,' as well 
     as `designated recipient.' A subrecipient includes any entity 
     receiving funding from the designated recipient. This will 
     facilitate private sector participation in public 
     transportation.
       Mobility management is made an eligible expense. Subsection 
     (b) is amended to state more explicitly the general authority 
     for grants under Section 5307. Eligibility is expanded to 
     include `mobility management' as defined in Subsection 
     5302(a)(7a). Paragraph (4) is struck since separate 
     eligibility for reconstructing or rehabilitating rolling 
     stock is no longer needed, since these terms have been 
     included in the definition of capital project in Subsection 
     5303(a).
       Currently, urbanized areas over 200,000 may not use funds 
     from the urbanized area formula program for operating 
     assistance. A number of urbanized areas' status changed 
     unexpectedly as a result of the 2000 census, due to changes 
     in the Census Bureau's definitions and procedures for 
     defining urbanized areas. These areas were allowed to 
     continue to use funds for operating assistance for 2003 by 
     P.L. 107-232, for 2004 by the Surface Transportation 
     Extension Act of 2003, and for the first eight months of 2005 
     by the Surface Transportation Extension Act of 2004, Part V. 
     These provisions are extended for the remainder of 2005 as 
     currently enacted. For 2006 and 2007, these provisions are 
     phased out. Urbanized areas covered by these provisions would 
     be allowed to use 50 percent of their current limits on 
     operating assistance in 2006 and 25 percent in 2007. This 
     should provide these areas with more than ample time to 
     develop and implement transition plans. The Senate strongly 
     opposes continuing these provisions beyond 2007 and believes 
     the more appropriate role for the Federal Government is in 
     capital investment.
       Section 5307(g)(4) is deleted to remove an obsolete 
     standard for setting interest rates on advance construction 
     projects. TEA-21 included a provision which required that the 
     interest rate be set based on the most favorable terms 
     available to the recipient and thus this is unnecessary.
       The eligibility requirements for local match within this 
     section are streamlined to include all advertising revenue as 
     well as contracts with social service organizations.
       Certain urbanized areas which grew to a population of over 
     200,000 can use funds for operating assistance in 2006 
     through 2007, with the amounts progressively phased down.

[[Page H7473]]

       Currently, Subsection 5307(h) requires streamlined 
     administrative procedures for track and signal improvements. 
     This subsection is deleted because separate treatment for 
     track and signal projects is no longer needed.
       Currently, Subsection 5307(j) requires that grantees submit 
     annual reports on sales of advertising and concessions. This 
     subsection is deleted because it is redundant with a similar 
     requirement of the National Transit Database.
       Transit enhancements program is administered as a 
     certification rather than as a set-aside. Subsection 5307(k) 
     dealing with `transit enhancement activities' is mainstreamed 
     into a new subparagraph (K) in Section 5307(d)(1). Currently, 
     that subsection allows for a one percent set-aside for 
     transit enhancements and requires a report listing the 
     projects. Under new subparagraph (K), a recipient with at 
     least a population of 200,000 in its urbanized area could 
     instead certify that one percent of its Section 5307 funds 
     has been expended on transit enhancements.
       Under current law, Section 5307(n)(1) states that 18 U.S.C. 
     1001, regarding false or fraudulent statements, applies only 
     to certificates or submissions provided pursuant to Section 
     5307, `Urbanized Area Formula Grants.' This paragraph is 
     moved to Section 5323, General Provisions on Assistance. 
     Under Section 5223, 18 U.S.C. 1001 applies to any Federal 
     public transportation grant program.
       A technical amendment is made to Subsection 5307(k)(2) to 
     provide a complete list of requirements with which grant 
     recipients must comply. In addition, a provision is added to 
     Subsection 5307(k) to clarify that the Hatch Act does not 
     apply to non-supervisory employees of grant recipients. This 
     provision was included in the former Section 5 of the Urban 
     Mass Transportation Act of 1964, as amended. However, it was 
     inadvertently not included in Chapter 53 when the Urban Mass 
     Transportation Act of 1964, as amended, was codified.
     Conference Substitute
       The conferees adopted the Senate language providing for a 
     phase-out of operating eligibility for urbanized areas which 
     crossed over 200,000 in population for the first time in the 
     2000 census.
       The conference agreement provides that transit enhancement 
     program will be administered as a certification, rather than 
     a set-aside, and that grant recipients must submit an annual 
     report of transit enhancement projects.
       The conferees agreed to delete the 1985 baseline limitation 
     on local match revenues resulting from the sale of 
     advertising or concessions. Additionally, the conferees 
     agreed to allow recipients to use amounts received under 
     service agreements with a State, local social service agency, 
     or private social service organizations as local match in 
     order to foster coordination with other agencies that provide 
     transportation services.
       The conferees made a number of technical changes to Section 
     5307. Subsection (b) is amended to state more explicitly the 
     general authority for grants under Section 5307. In addition, 
     the conferees agreed that recipients must certify legal, 
     financial, and technical capacity for the safety and security 
     aspects of their program of projects. The conferees agreed to 
     delete subsections (b)(4), (g)(4), (h), (j), and (k) as 
     redundant or obsolete. The definition of associated capital 
     maintenance was reorganized. A technical amendment is made to 
     Subsection 5307(k)(2) to provide a complete list of 
     requirements with which grant recipients must comply. In 
     addition, a provision is added to Subsection 5307(k) to 
     codify existing transit law which states that the Hatch Act 
     does not apply to non-supervisory employees of grant 
     recipients. The conferees deleted the reference to 18 U.S.C. 
     1001, regarding false or fraudulent statements, from Section 
     5307, because Section 5323 is amended to apply 18 U.S.C. 1001 
     to the entire federal transit program.
       The conference agreement adopts the House provision 
     regarding the treatment of the United States Virgin Islands 
     as an urbanized area for the purposes of apportionments under 
     section 5307.


                  SEC. 3010. CLEAN FUELS GRANT PROGRAM

     House Bill
       Sec. 3009.
       Section 3009 amends section 5308 of title 49, United States 
     Code, regarding the clean fuels formula grant bus procurement 
     program. Funds are apportioned to recipients in urbanized 
     areas that are designated as nonattainment areas for ozone or 
     carbon monoxide under section 107(d) of the Clean Air Act or 
     are maintenance areas for ozone or carbon monoxide. These 
     grant funds can be used to purchase or lease clean fuel 
     buses, construct or lease vehicle-related equipment 
     supporting such clean fuel buses, and construct new or 
     improve existing facilities to accommodate clean fuel buses. 
     Clean fuel buses include those powered by clean diesel, 
     compressed natural gas, liquefied natural gas, biodiesel 
     fuels, batteries, alcohol-based fuels, hybrid electric power 
     systems, fuel cells, or other low or zero emission 
     technologies. Not more than 25 percent of the funds made 
     available under the clean fuels formula grant program may be 
     used for clean diesel bus technology. The apportionment 
     formula is weighted such that two-thirds of the funds go to 
     recipients serving urbanized areas with a population of 
     1,000,000 or more and one-third of the funds go to recipients 
     serving urbanized areas of less than 1,000,000. The formula 
     is also weighted by the severity of nonattainment in the 
     urbanized area being served.
       The Committee intends that the Secretary shall encourage 
     recipients of clean fuels formula grants to adequately invest 
     in infrastructure facilities to accommodate the needs of 
     these alternatively fueled vehicles.
     Senate Bill
       No comparable provision.
     Conference Substitute
       The conference report retains the House clean fuels grant 
     program, but makes the program discretionary in nature rather 
     than a formula grant program.


                  SEC. 3011. CAPITAL INVESTMENT GRANTS

     House Bill
       Sec. 3010.
       This section amends section 5309 of title 49, United States 
     Code, which authorizes capital investment grants for new 
     fixed guideway capital projects (``new starts''), fixed 
     guideway modernization (``rail modernization''), and bus and 
     bus-related facilities. All references in the current law 
     section heading and text to ``capital investment loans'' are 
     deleted from section 5309. Historically, only capital 
     investment grants have been awarded under this section.
       Subsection 5309(c), concerning major capital investment 
     grants of $75 million or more includes the new starts program 
     requirements and FTA evaluation and rating criteria found in 
     current law subsection 5309(e). The term describing all new 
     starts and small starts projects is changed from the current 
     law ``capital project for a new fixed guideway system or 
     extension of an existing fixed guideway system'' to ``new 
     fixed guideway capital project'' for the sake of brevity. The 
     new term is defined in subsection (n) as a minimum operable 
     segment of a capital project for a new fixed guideway system 
     or extension to an existing fixed guideway system, which is 
     the same definition for new starts projects as under current 
     law subsection 5309(p). Subsection 5309(c) pertains only to 
     those new fixed guideway capital projects that will require 
     $75 million or more of Federal assistance provided under the 
     authority of Section 5309. Such projects are defined as 
     ``major'' new starts as opposed to small starts, which 
     involve less than $75 million in such funds and are 
     authorized under subsection (d).
       Major new starts projects must be carried out through a 
     full funding grant agreement with the Secretary. The full 
     funding grant agreement is based upon the evaluations and 
     ratings required under subsection 5309(c). The baseline 
     requirements for a project to secure a grant under this 
     subsection is that the project proposal must be based on the 
     results of alternatives analysis and preliminary engineering; 
     justified based on a comprehensive review of the project's 
     benefits; and supported by an acceptable degree of local 
     financial commitment. The project justification and local 
     financial commitment evaluation criteria are outlined in 
     detail, consistent with the current law criteria. In 
     assessing the local financial commitment for a new starts 
     project, the FTA is authorized to consider the extent to 
     which the project sponsor has overmatched the statutory local 
     match requirement of 20 percent. However, the authority to 
     consider a higher local match as part of the assessment of a 
     project's local financial commitment does not allow the 
     Secretary to require a higher local match than 20 percent.
       Proposed new starts projects under subsection (c) are 
     authorized to advance from alternatives analysis to 
     preliminary engineering, and from preliminary engineering to 
     final design and construction, if the Secretary finds that 
     the project meets the requirements of this section. In making 
     these findings, the Secretary is directed to evaluate and 
     rate the project as ``highly recommended'', ``recommended'', 
     or ``not recommended'' based on the results of alternatives 
     analysis, the project justification criteria, and local 
     financial commitment.
       Subsection 5309(d) regarding capital investment grants of 
     less than $75 million authorizes a new program under Capital 
     Investment Grants. These ``small starts'' fall into two 
     subcategories--those involving between $25 million and $75 
     million in funds under section 5309, and those that are less 
     than $25 million. New fixed guideway capital projects with a 
     section 5309 Federal share of less than $25 million are not 
     subject to the requirements of this subsection regarding 
     project evaluation and rating and do not enter into a long-
     term financial contract with the Secretary (called a 
     ``project construction grant agreement'' in the small starts 
     program). Under the small starts program, lower-cost fixed 
     guideway projects such as streetcars, bus rapid transit, and 
     commuter rail projects will be advanced through an expedited 
     and streamlined evaluation and rating process. As the Federal 
     Transit Administration develops administrative and regulatory 
     guidance for the implementation of the small starts program, 
     the process and procedures adopted should be representative 
     of the relative size and scope of the projects.
       Project justifications for the small starts program are 
     based on five criteria: consistency with local land use 
     policies and likelihood to achieve local developmental goals; 
     cost effectiveness of the project at the time revenue service 
     is initiated; degree of positive impact on local economic 
     development; reliability of cost and ridership forecasts; and 
     other factors the Secretary considers appropriate to carry 
     out this subsection. The Secretary is also required to 
     analyze and

[[Page H7474]]

     consider the results of planning and the alternatives 
     analysis for the project. The small starts evaluation process 
     should consider the economic benefits of the project, 
     including the level of private sector investment associated 
     with the advancement of the project. The small starts local 
     financial commitment evaluation is a streamlined version of 
     the new starts financial evaluation process. The Secretary is 
     directed to require that each proposed local source of 
     capital and operating financing is stable, reliable, and 
     available within the proposed project timetable, and that 
     there be an acceptable degree of local financial commitment. 
     This provision gives the Secretary the authority to consider 
     a higher local match as part of the assessment of a project's 
     local financial commitment, but does not allow the Secretary 
     to require a higher local match than 20 percent.
       The project development process is also simplified. The new 
     starts project development process involves four discrete 
     steps: (1) planning and alternatives analysis, (2) 
     preliminary engineering, (3) final design, and (4) entering 
     into a full funding grant agreement and construction. The 
     small starts program involves three steps: (1) planning and 
     alternatives analysis, (2) project development, and (3) 
     entering into a project construction grant agreement and 
     construction. Small starts projects may advance from planning 
     and alternatives analysis to project development and 
     construction only after the Secretary finds that the project 
     meets the requirements of this subsection and the local 
     metropolitan planning organization adopts the locally 
     preferred alternative into its long-range transportation 
     plan. Small starts projects are evaluated based on project 
     justification criteria and local financial commitment and are 
     rated as ``recommended'' or ``not recommended'' based on the 
     results of the FTA's analysis. Only small starts projects 
     that are authorized for construction and rated 
     ``recommended'' may enter into a project construction grant 
     agreement.
       Another important difference between the new starts program 
     and the small starts program is that, under the small starts 
     program, fixed guideway capital projects have a broader 
     definition that includes corridor-based public transportation 
     bus projects if the majority of the project's right-of-way is 
     dedicated alignment. However, the program is written to be 
     ``mode neutral''--any fixed guideway capital project fitting 
     the broader definition under small starts is eligible to be 
     funded under this category if it is less than $75 million in 
     section 5309 Federal funds, whether it is a bus rapid transit 
     project, a streetcar or trolley project, commuter rail, or 
     light rail. However, all small starts projects must be 
     included under the new starts authorization list in section 
     3037 of this bill to receive funds in subsequent 
     appropriations bills within this authorization period.
       Subsection 5309(g) outlines the Government's share of the 
     net project cost for all projects authorized under section 
     5309. The Administration had proposed to decrease the 
     Government's share for new start projects to 50 percent. The 
     Committee has rejected this proposal, and retains the 
     provision under subsection 5309(h) in current law that the 
     Federal share for a project shall be 80 percent, unless the 
     grant recipient requests a lower grant percentage. New 
     language is included clarifying that nothing in section 5309, 
     including the language that specifically directs the FTA to 
     consider in its evaluation of a project the extent to which a 
     project has a higher local match than required by law, shall 
     be construed as authorizing the Secretary to require a local 
     match higher than 20 percent of the net capital project cost.
       Subsection 5309(i) directs the Secretary to submit an 
     annual new starts report to the House and Senate authorizing 
     committees on the first Monday in February, which includes 
     the Administration's funding proposals for new starts 
     projects in the coming fiscal year, and evaluations and 
     ratings for all new starts projects authorized in section 
     3037 of this Act. The current law requirement under 
     subsection 5309(o)(2) regarding an August supplemental report 
     is deleted. The Committee directs that the FTA shall forward 
     letter updates to the House and Senate authorizing committees 
     when a project advances to preliminary engineering or to 
     final design after the publication of the annual new starts 
     report. In subsection 5309(i)(2), the U.S. General Accounting 
     Office is directed to conduct an annual review of FTA's 
     processes and procedures for evaluating, rating, and 
     recommending new starts projects and how the agency 
     implements such processes and procedures. This review shall 
     be submitted to the Congress by May 31 of each year.
       Subsection 5309(k), regarding bus and bus facility grants, 
     amends the existing law language under subsection 5309(m)(3). 
     The current language regarding consideration of the age of 
     buses, bus fleets, related equipment, and bus-related 
     facilities when making grants is retained. Current law 
     provisions that set aside funds for the bus testing facility 
     in Altoona, Pennsylvania and for the section 5308 Clean Fuels 
     formula program are deleted, as both these programs are now 
     funded as set-asides from formula grants.
       Subsection 5309(l) is a new provision making bus and bus 
     facilities and new starts grant funds available for three 
     fiscal years (including the year in which the amount is made 
     available or appropriated). Funds that remain unobligated 
     after three years shall be deobligated and may be used by the 
     Secretary for any purpose under this section.
       Subsection 5309(m) directs the allocation of amounts made 
     available for programs authorized under section 5309. The 
     existing formula of 40 percent for new starts, 40 percent for 
     rail modernization, and 20 percent for bus and bus facilities 
     is retained, after the funding levels authorized for small 
     starts are set aside from the total amount made available for 
     section 5309 programs. The current law set-aside of $10.4 
     million a year for ferryboats and ferry terminal facilities 
     in Alaska or Hawaii is retained. A provision is added 
     establishing a new set-aside for the national fuel cell bus 
     technology development program, and a new ferryboat and ferry 
     terminal set-aside of $10 million per year is established.
     Senate Bill
       Sec. 6011.
       The General Authority section is amended to limit the 
     program to focus on three activities: New Starts, fixed 
     guideway modernization, and buses and bus facilities. Non-
     fixed guideway corridor improvements are eligible for New 
     Starts funds for projects under $75 million. Current 
     procedures and criteria apply to New Starts projects over $75 
     million in New Starts share while simplified procedures and 
     criteria apply to New Starts projects under $75 million in 
     New Starts share. The current exemption for projects under 
     $25 million is eliminated.
       The Bus, New Starts and Fixed Guideway Modernization 
     programs continue in the Capital Investment Programs; funds 
     are split approximately 23% bus, 40% New Starts and 37% Fixed 
     Guideway Modernization.
       Bus funds going to private non-profit organizations or 
     rural transit systems as subrecipients are administered under 
     the requirements of the Elderly and Disabled and Rural 
     programs, respectively. The requirements for statewide 
     transit providers depend on where the project is located. 
     Funding for Alternatives Analysis is made available from the 
     Planning Program rather than the Capital Investment Program.
       The current three level rating system (Highly Recommended, 
     Recommended, Not Recommended) is replaced by a five level 
     system (High, Medium-High, Medium, Medium-Low, Low).
       The maximum New Starts share is retained at 80 percent. A 
     higher than requested share can be provided for projects 
     which keep cost and ridership estimates within 10 percent of 
     the forecasts used as the basis for establishing the Locally 
     Preferred Alternative.
       Grantees will be allowed to keep a portion of the cost 
     savings in the case where projects are completed under 
     budget.
       The New Starts Report and Supplemental Report are replaced 
     by reports issued three times a year focusing on changes to 
     ratings and an annual report on budget recommendations.
       References to `capital investment loans' are deleted from 
     Section 5309 since, historically, only capital investment 
     grants have been awarded pursuant to this section.
       A new Subsection 5309(e)(8) is added to require periodic 
     publication of the policies and procedures used in rating 
     projects. This will help improve the transparency and 
     predictability of the rating process.
       The Committee is seeking to identify cost drivers for 
     critical, complex, and capital intensive transit New Starts 
     projects. Public Private Partnerships (PPP) may provide an 
     important way to achieve significant savings. These 
     partnerships with qualification-based selection and 
     performance-based contracting integrate risk sharing, 
     streamline project development, engineering, and 
     construction, and preserve the integrity of the NEPA process, 
     which results in the potential for significant schedule and 
     cost advantages over traditional infrastructure development. 
     The Committee expects the Secretary to initiate the pilot 
     program as soon as practicable after enactment, in order that 
     the benefits of PPP's may be understood and potentially 
     applied to other transit New Starts projects.
       A new statutory requirement for `Before and After Studies' 
     as part of Full Funding Grant Agreements is added in Section 
     5309(g). Such studies are already required by the regulation 
     implementing Section 5309(e) and are an essential part of 
     improving the New Starts program. By better understanding the 
     actual costs and benefits of New Starts projects, especially 
     the early planning stages when the Locally Preferred 
     Alternative (LPA) is chosen, the planning process can be 
     improved, and future projects can be based on estimates of 
     costs and benefits which are more accurate. In addition, FTA 
     would be required to produce an annual report each year that 
     would summarize the results of these studies.
       Section 5309(i)(3) would continue to set aside $10,400,000 
     each year for Alaska and Hawaii ferryboats, the same amount 
     as is in TEA-21. The factors in Section 5309(i)(6) to be 
     considered by the Secretary in selecting bus and bus 
     facilities grants is expanded to include both the age and 
     condition of the buses, fleets, and facilities.
       In lieu of establishing a new program for intermodal 
     facilities as proposed by the Administration, $75 million is 
     set aside each year from the bus discretionary program for 
     these facilities. Eligibility for the intercity portion of 
     intermodal terminals is established by the amendment to 
     Section 5302.
       The Federal Transit Administration is required to issue a 
     `Contractor Performance Assessment Report' (CPAR). This 
     report will analyze the consistency and accuracy of cost and 
     ridership estimates made by contractors

[[Page H7475]]

     to public transportation agencies developing major capital 
     investments. This would provide public transportation 
     agencies with a tool to assist in choosing contractors with 
     the highest success rates in predicting cost and ridership.
     Conference Substitute
       This section amends section 5309 of title 49, United States 
     Code, which authorizes capital investment grants for new 
     fixed guideway capital projects (``new starts''), fixed 
     guideway modernization (``rail modernization''), and bus and 
     bus-related facilities. All references in the current law 
     section heading and text to ``capital investment loans'' are 
     deleted from section 5309. Historically, only capital 
     investment grants have been awarded under this section.
       Subsection 5309(d) regarding capital investment grants of 
     less than $75 million authorizes a new program under Capital 
     Investment Grants. Under the small starts program, lower-cost 
     fixed guideway and non-fixed guideway projects such as bus 
     rapid transit, streetcars, and commuter rail projects will be 
     advanced through an expedited and streamlined evaluation and 
     rating process. Non-fixed guideway corridor improvements 
     are eligible for New Starts funds for projects under $75 
     million. This can be demonstrated by a substantial fixed 
     guideway or by a substantial investment in a defined 
     corridor. Project justifications for the small starts 
     program are based on five criteria: consistency with local 
     land use policies and likelihood to achieve local 
     developmental goals; cost effectiveness of the project at 
     the time revenue service is initiated; degree of impact on 
     local economic development; reliability of cost and 
     ridership forecasts; and other factors the Secretary 
     considers appropriate to carry out this subsection. The 
     Secretary is also required to analyze and consider the 
     results of planning and the alternatives analysis for the 
     project to ensure that sufficient effort has been made to 
     perform a true exploration of alternatives analysis. The 
     small starts local financial commitment evaluation is a 
     streamlined version of the new starts financial evaluation 
     process. The Secretary is directed to require that each 
     proposed local source of capital and operating financing 
     is stable, reliable, and available within the proposed 
     project timetable, and that there be an acceptable degree 
     of local financial commitment.
       Current procedures and criteria apply to New Starts 
     projects over $75 million in New Starts share while 
     simplified procedures and criteria apply to New Starts 
     projects under $75 million in New Starts share. The current 
     exemption for projects under $25 million is eliminated, once 
     the FTA has promulgated regulations required under the small 
     starts program.
       The current three level rating system for New Starts 
     (Highly Recommended, Recommended, Not Recommended) is 
     replaced by a five level system (High, Medium-High, Medium, 
     Medium-Low, Low). The maximum New Starts share is retained at 
     80 percent.
       Grantees will be allowed to keep a portion of the cost 
     savings in the case where projects are completed under 
     budget.
       A higher than requested share can be provided for projects 
     which keep cost and ridership estimates within 10 percent of 
     the forecasts used as the basis for establishing the Locally 
     Preferred Alternative. Transit projects that make a concerted 
     effort to produce valid and reliable estimates have the 
     potential to be rewarded.
       Subsection 5309(g) outlines the Government's share of the 
     net project cost for all projects authorized under section 
     5309. The Administration had proposed to decrease the 
     Government's share for new start projects to 50 percent. The 
     Conference has rejected this proposal, and retains the 
     provision under subsection 5309(h) in current law that the 
     Federal share for a project shall be 80 percent, unless the 
     grant recipient requests a lower grant percentage. In 
     assessing the local financial commitment for a new starts 
     project, the FTA is authorized to consider the extent to 
     which the project sponsor has overmatched the statutory local 
     match requirement of 20 percent. However, the authority to 
     consider a higher local match as part of the assessment of a 
     project's local financial commitment does not allow the 
     Secretary to require a higher local match than 20 percent.
       The Conference is seeking to identify cost drivers for 
     critical, complex, and capital intensive transit New Starts 
     projects. Public Private Partnerships (PPP) may provide an 
     important way to achieve significant savings. These 
     partnerships with qualification-based selection and 
     performance-based contracting integrate risk sharing, 
     streamline project development, engineering, and 
     construction, and preserve the integrity of the NEPA process, 
     which results in the potential for significant schedule and 
     cost advantages over traditional infrastructure development. 
     The Committee expects the Secretary to initiate the pilot 
     program as soon as practicable after enactment, in order that 
     the benefits of PPP's may be understood and potentially 
     applied to other transit New Starts projects.
       In lieu of establishing a new program for intermodal 
     facilities as proposed by the Administration, $35 million is 
     set aside each year from the bus discretionary program for 
     these facilities. Eligibility for the intercity portion of 
     intermodal terminals is established by the amendment to 
     Section 5302.
       A new statutory requirement for `Before and After Studies' 
     as part of Full Funding Grant Agreements is added in Section 
     5309(g). Such studies are already required by the regulation 
     implementing Section 5309(e) and are an essential part of 
     improving the New Starts program. By better understanding the 
     actual costs and benefits of New Starts projects, especially 
     the early planning stages when the Locally Preferred 
     Alternative (LPA) is chosen, the planning process can be 
     improved, and future projects can be based on estimates of 
     costs and benefits which are more accurate. In addition, FTA 
     would be required to produce an annual report each year that 
     would summarize the results of these studies.
       The Federal Transit Administration is required to issue a 
     `Contractor Performance Assessment Report' (CPAR). This 
     report will analyze the consistency and accuracy of cost and 
     ridership estimates made by contractors to public 
     transportation agencies developing major capital investments. 
     The CPAR will provide public transportation agencies with an 
     informational tool, allowing them to better identify 
     contractors able to perform accurate estimates of cost and 
     ridership figures. Additionally, consulting the CPAR as a 
     condition of Federal assistance will help ensure the 
     reliability of estimates used in awarding FFGAs. In 
     considering the performance of individual contractors, the 
     Secretary may take into consideration extenuating factors 
     outside the control of a contractor that may have had an 
     adverse impact on the accuracy of estimates.


SEC. 3012. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND 
                     INDIVIDUALS WITH DISABILITIES.

     House Bill
       Sec. 3011.
       This section amends section 5310 of title 49, United States 
     Code, which authorizes formula grants to States for public 
     transportation projects and services that meet the special 
     needs of elderly and disabled individuals. The definition of 
     grant recipient is amended in paragraph 5310(a)(2) by adding 
     a definition for subrecipients, which is consistent with 
     current practice. A 10 percent limitation is included on the 
     amount of a State's grant funds that may be used for 
     recipient or for subrecipient administrative expenses and 
     technical assistance. This codifies current FTA 
     administrative practice.
       Subsection 5310(b) describes the apportionment and transfer 
     processes, which follows current law, except that an 
     adjustment is made to the apportionment formula for 
     particularly low density States. In low density States, 
     providing essential public transportation is particularly 
     challenging, especially to special needs populations, because 
     of the distances involved. When providing services over these 
     long distances, operating costs are higher and farebox 
     recovery is lower. This formula adjustment may enable low 
     density States to continue providing essential public 
     transportation services to a sector of the population that is 
     particularly dependent on transit--the elderly and disabled.
       Subsection (c) amends current law regarding the 
     Government's share of costs. The current Federal match of 80 
     percent for capital projects is retained, except in cases 
     where a State has a very high percentage of Federally-owned 
     public lands. In such cases, the ``sliding scale'' Federal 
     match under section 120(b) of title 23, United States Code, 
     is used. Operating expenses are also made eligible for 
     section 5310 elderly and disabled grant funding, limited to 
     50 percent of net operating costs. Two new sources of local 
     match funding are authorized: proceeds from a service 
     agreement with a State, local social service agency, or 
     private social service organization; and other Federal funds 
     from non-Department of Transportation agencies that can be 
     expended for transportation (e.g., Temporary Assistance for 
     Needy Families, Medicaid, job training program funds, or 
     Welfare to Work grants). Using these related human service 
     grants funds as a local match for transit projects leverages 
     the Federal investment and increases coordination among 
     Federal agencies that provide transportation services.
       Subsection (d) regarding grant requirements changes the 
     general applicability of requirements for the elderly and 
     disabled grant program from current law, which ties the 
     program to section 5309, to the requirements under section 
     5307, to the extent the Secretary considers appropriate. A 
     new requirement is added that, beginning in fiscal year 2007, 
     the State must certify that projects funded under this 
     section are derived from coordinated public transit-human 
     services transportation plans with public input. The current 
     law requirement that the State certify allocations of funds 
     were made on a fair and equitable basis is retained.
     Senate Bill
       Sec. 6012.
       Currently, under Section 5310, the Secretary may provide 
     grants for the special needs of elderly individuals and 
     individuals with disabilities directly (1) to a State or 
     local Government authority; or (2) to the chief executive 
     office of the State for allocation to private non-profit 
     corporations or associations when such service is unavailable 
     or insufficient, or (3) to Governmental authorities approved 
     by the State to coordinate services for these two population 
     groups, if there are no non-profit corporations readily 
     available to provide the service. Section 5310 is amended to 
     authorize grants through the States, which would then 
     allocate the funds to private non-profit organizations or 
     Governmental authorities under the same conditions required 
     in current law.

[[Page H7476]]

       Persons with disabilities are particularly in need of 
     service beyond that provided in response to the Americans 
     with Disabilities Act. The program is expanded and renamed to 
     include activities which provide access to persons with 
     disabilities, in addition to that which is necessary to meet 
     the requirements of the Americans with Disabilities Act. 
     Funding for Section 5310 is expanded and explicit eligibility 
     is provided for Governmental authorities providing services 
     in excess of that provided by the Americans with Disabilities 
     Act. This will help fulfill the goals of the President's New 
     Freedom Initiative, without creating a new program. In 
     addition, language is added to clarify that a priority of 
     Section 5310 program funds is the provision of access to 
     medical care.
       Section 5310(a)(3) allows a State to use up to 15 percent 
     of the amounts it receives under this section to administer, 
     plan, and provide technical assistance. This additional 
     authority makes this program consistent with the Section 5311 
     program, so that both state-administered programs essentially 
     have similar structures.
       Consistent with existing Section 5310, grants would be made 
     for capital public transportation projects planned, designed, 
     and carried out to meet the special needs of this population 
     and could include the acquisition of public transportation 
     services as a capital expense. The Federal share cannot 
     exceed 80 percent of the net capital costs of the projects, 
     as determined by the Secretary. The remainder of the funds 
     could be provided from a variety of other sources, including 
     undistributed cash surpluses, or from amounts appropriated or 
     made available for transportation from any other Federal 
     department or agency other than the Department of 
     Transportation, except for Federal Lands Highway funds, as 
     well as contract revenue received from human service 
     agencies. This section is also amended to allow for a sliding 
     scale approach to the match requirements for capital expenses 
     for those states that have a large percentage of public 
     lands, and as a result, have a lower tax base from which to 
     draw resources to fund the matching requirement mandated by 
     these programs. It is similar in nature to a provision 
     already in current law in the highway program.
       As is current practice, funds under Subsection (b)(1) are 
     apportioned to States based on a formula administered by the 
     Secretary. In administering this formula, the Secretary will 
     consider the number of elderly individuals and individuals 
     with disabilities in a State. Under current law, unobligated 
     Section 5310 funds available during the fourth quarter of 
     each fiscal year may be transferred to Urbanized Area or 
     Other Than Urbanized Area Formula Grant programs in order to 
     supplement funds apportioned under those sections. Subsection 
     (b)(2) allows recipients of grants under this section to 
     transfer Section 5310 funds to those programs at any time 
     provided that the funds are used for the purposes originally 
     authorized. This would eliminate the artificial fourth 
     quarter requirement since States typically budget for such 
     transfers in the beginning of each fiscal year. In addition, 
     States could make funds available to a subrecipient in a 
     single transaction that included several FTA program-funding 
     sources.
       Under Subsection (d), a recipient of a grant is subject to 
     all Section 5307 grant requirements to the extent the 
     Secretary deems appropriate. Recipients would be required to 
     certify that the projects for which funds are requested are 
     drawn from a plan for human service transportation 
     coordination. The effect of this provision and those included 
     in the non-urbanized formula program and the Jobs Access and 
     Reverse Commute Program will be to enhance coordination 
     between these programs and with programs of other 
     Departments, such as Health and Human Services, Labor, and 
     Education. The Committee expects that FTA will give grantees 
     an appropriate opportunity to develop these plans by phasing 
     in this requirement during FY 2006. Finally, recipients are 
     required to certify that allocations made to subrecipients 
     were distributed in a fair and equitable manner.
       Subsections (e) through (i) are the same as in current law.
     Conference Substitute
       The conference agreement maintains the current law program 
     for special needs of elderly individuals and individuals with 
     disabilities and does not incorporate New Freedom activities, 
     as the Senate bill did. Because of strong interest from 
     States in extending the authority to use section 5310 grant 
     funds for operating assistance, a new seven-state pilot 
     program is established for fiscal years 2006 through 2009 to 
     determine whether this expanded authority improves services 
     to elderly individuals and individuals with disabilities.


        SEC. 3013. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS

     House Bill
       Sec. 3012.
       This section amends section 5311 of title 49, United States 
     Code, regarding the apportionment of formula grant funds for 
     non-urbanized areas. Subsection (a) amends the definition 
     provisions under section 5311(a) to define an eligible 
     recipient and sub-recipient of other than urbanized area 
     funds.
       Subsection (b) amends the general authority provisions that 
     allow other than urbanized areas to use formula grant funds 
     for capital transportation projects, or operating assistance 
     projects (including the acquisition of transportation 
     services) provided the projects are contained in a state 
     program of public transportation service projects. Under 
     subsection 5311(b)(3), the rural transportation assistance 
     program (RTAP), a national technical assistance, training and 
     support program for rural public transportation providers, is 
     funded with a 2 percent set-aside of the section 5311 grant 
     funds. From the amounts made available for the RTAP 
     activities, up to 15 percent may be used by the Secretary to 
     carry out projects of a national scope to sustain ongoing 
     national activities. Under current law, the RTAP is funded 
     out of the Research program.
       Subsection 5311(c) describes the apportionment process, 
     which follows current law, except that an adjustment is made 
     to the apportionment formula for particularly low density 
     States. In low density States, providing essential public 
     transportation is particularly challenging because of the 
     distances involved. When providing services over these long 
     distances, operating costs are higher and farebox recovery is 
     lower. This formula adjustment may enable low density States 
     to provide essential public transportation services by 
     establishing a level of funding that will support a baseline 
     program.
       In subsection (e), an amendment is made to 5311(f) that 
     requires States to consult with affected intercity bus 
     service providers before certifying to the Secretary that 
     intercity bus service needs of the State are being adequately 
     met without making the 15 percent allocation of funds to such 
     services. Such consultation would help ensure the State's 
     awareness of any intercity bus service needs.
       Subsection (f) amends section 5311(g) to retain the 
     existing Federal share for any capital project at 80 percent 
     or less of the net project cost, as determined by the 
     Secretary; except in cases where a State has a very high 
     percentage of Federally owned lands. In such cases, the 
     ``sliding scale'' Federal match under section 120(b) of title 
     23, United States Code, is used. Also retained is the Federal 
     share for operating assistance at 50 percent or less of the 
     net costs of an operating project, as determined by the 
     Secretary. The remainder of the net project costs may be 
     provided from a number of different sources, including 
     amounts appropriated to or made available to a department or 
     agency of the Federal government, other than the Department 
     of Transportation (e.g., Temporary Assistance for Needy 
     Families, Medicaid, job training program funds, or Welfare to 
     Work grants). Using these related human service grants funds 
     as a local match for transit projects leverages the Federal 
     investment and increases coordination among Federal agencies 
     that provide transportation services.
     Senate Bill
       Sec. 6013.
       A new formula tier is established based on land area to 
     address the needs of low-density states. The remaining 80 
     percent of funds are to be allocated using the current 
     formula. Matching funds may come from contracts with human 
     service agencies (as in current law) or from other Federal 
     programs.
       Section 5311(a) defines an eligible recipient and 
     subrecipient of other than urbanized area program funds. 
     Indian tribes are established as direct recipients. Private 
     operators engaged in public transportation are made eligible 
     as subrecipients of 5311 funds, providing for opportunities 
     for involvement of the private sector, as was the original 
     intent when the Urban Mass Transportation Act of 1964 was 
     first enacted.
       Recipients must submit data on service levels, costs, and 
     revenues to the National Transit Database. Currently, 
     urbanized area program grant recipients must submit data on 
     service levels, costs, and revenues, in accordance with 
     requirements of the National Transit Database. Current law is 
     amended to require a simplified version of these data 
     collection requirements for the other than urbanized area 
     program. Given the large growth in funding for this program, 
     it is crucial that recipients report basic information on the 
     effectiveness of this program. The Committee expects that the 
     data collection requirements will be tailored to the smaller 
     size of the typical public transportation system in rural 
     areas, while still providing enough information to judge the 
     condition and performance of our Nation's network of rural 
     public transportation services.
       The Rural Transit Assistance Program becomes a 2 percent 
     takedown from the program. Under current law, recipients of 
     grants and contracts for transportation research, technical 
     assistance, training, or related support services, such as 
     those given under the Rural Transportation Assistance Program 
     (RTAP), must compete annually for National Planning and 
     Research funds. Section 5311(b)(3), as redesignated, provides 
     up to two percent of Section 5311 funds to carry out RTAP 
     activities. This amendment better correlates funding for RTAP 
     with the amount of funding for rural service overall, thereby 
     stabilizing the program.
       Indian tribes become eligible direct recipients of program 
     funds, with a portion of funding set aside for tribes 
     beginning in FY 2006. An increasing amount of funding is set 
     aside for Indian Tribes each fiscal year beginning in fiscal 
     year 2006. Of the remainder, eighty percent of the Section 
     5311 program amount is apportioned to States pursuant to the 
     same formula currently being used and

[[Page H7477]]

     now set forth in Section 5311(c)(3), which uses population in 
     non-urbanized areas to allocate funds. The remaining twenty 
     percent is apportioned on land area in non-urbanized areas. 
     Section 5311(f)(2) requires the State to consult with 
     affected intercity bus service providers before certifying 
     that the State's intercity bus service needs are being 
     adequately met.
       Subsection 5311(g) is amended to allow for a sliding scale 
     approach to the match requirements for capital expenses under 
     this section for those states that have a large percentage of 
     public lands, and as a result, have a lower tax base from 
     which to draw resources. It is similar in nature to a 
     provision already in current law in the highway program. The 
     match for operating assistance is set at \5/8\ of the match 
     for capital projects.
     Conference Substitute
       The conferees agreed to define eligible recipients and 
     subrecipients of Section 5311 funds. Indian tribes are added 
     as eligible recipients.
       The general authority to make grants under the 5311 program 
     is rewritten to explicitly include both capital and operating 
     grants; thus, subsection (h) is deleted as unnecessary.
       The conferees agreed to fund the rural transportation 
     assistance program (RTAP), a national technical assistance, 
     training and support program for rural public transportation 
     providers, with a 2 percent set-aside of the section 5311 
     grant funds, rather than from the Research program, as in 
     current law. The conferees adopted the House provision 
     specifying that from the amounts made available for RTAP, up 
     to 15 percent may be used by the Secretary to carry out 
     projects of a national scope to sustain ongoing national 
     activities.
       The conference report includes the Senate provision 
     requiring recipients of Section 5311 funds to submit data on 
     service levels, costs, and revenues to the National Transit 
     Database. The conferees expect that the data collection 
     requirements will be tailored to the smaller size of the 
     typical public transportation system in rural areas, while 
     still providing enough information to judge the condition and 
     performance of our Nation's network of rural public 
     transportation services.
       The conference report adopts the Senate provision setting 
     aside a portion of funding each year for Indian tribes. The 
     funds set aside for Indian tribes are not meant to replace or 
     reduce funds that Indian tribes receive from states through 
     the Section 5311 program.
       A new formula tier based on land area is established to 
     address the needs of low-density states; twenty percent of 
     Section 5311 funds are distributed through this tier. The 
     remaining 80 percent of funds are to be allocated using the 
     existing formula.
       The conferees agreed that States must consult with affected 
     intercity bus service providers before certifying to the 
     Secretary that intercity bus service needs of the State are 
     being adequately met without making the 15 percent allocation 
     of funds to such services.
       The conferees agreed to apply the sliding scale federal 
     match under section 120(b) of title 23 United States Code, 
     for cases in which a state has a very high percentage of 
     federal lands. The federal match for operating assistance is 
     set at \5/8\ of the match for capital projects. The remainder 
     of the net project costs may be provided from a number of 
     different sources, including amounts appropriated to or made 
     available to a department or agency of the Federal 
     government, other than the Department of Transportation 
     (except for Federal Lands Highway funds). The conferees 
     believe that using these related human service grants funds 
     as a local match for transit projects will increase 
     coordination among Federal agencies that provide 
     transportation services.
       The conference report adopts the Senate provision codifying 
     current practice by requiring the Secretary of Labor to use a 
     Special Warranty to comply with the requirements of Section 
     5333(b).


    SEC. 3014. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT 
                                PROJECTS

     House Bill
       Sec. 3013.
       Currently, section 5312 of title 49, United States Code 
     does not address deployment of emerging technologies, and 
     inappropriately includes training provisions. As amended, 
     section 5312 would authorize research, development, 
     demonstration, and deployment projects, and would move the 
     training provisions in subsections (b) and (c) to section 
     5322 (Human Resource Program). Under this subsection, the 
     terms ``other transactions'' is included and is used to 
     replace the terms ``other agreements'' to provide the Federal 
     government with discretion to enter into project agreements 
     under terms that would encourage private parties to 
     participate in Federally assisted projects.
     Senate Bill
       Sec. 6014.
       Currently, Section 5312 does not address deployment of 
     emerging technologies, and inappropriately includes training. 
     As amended, Section 5312 authorizes public transportation 
     service planning, and research, development, demonstration, 
     and deployment projects.
       The former University Research and Fellowships programs 
     authorized by Subsections (b) and (c) are repealed, as these 
     programs have not been funded for many years.
       Throughout the Federal Government, the term `other 
     transactions' is used to provide executive branch agencies 
     with broad discretion to enter into project agreements under 
     terms that would encourage private parties to participate in 
     Federally-assisted projects. Since the term `other 
     agreements' in Section 5312(b)(2), as redesignated, provides 
     the same authority, this section is amended to replace that 
     term with `other transactions,' for consistency.
     Conference Substitute
       Adopts the Senate language, except the term ``other 
     transactions'' is not adopted. Instead, the broader current 
     law authority for ``other agreements'' (as utilized under the 
     joint partnership program) is extended to all transit 
     research programs. The current law authority to make grants 
     for fellowships is moved to section 5322, as proposed by 
     the House.


            SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM

     House Bill
       Sec. 3014.
       Amendments made to section 5313 of title 49, United States 
     Code provide the correct authorization citation for the 
     research programs and moves subsection (b) to the state 
     planning section under Chapter 52 of title 49.
     Senate Bill
       Sec. 6015.
       The Transit Cooperative Research Program remains unchanged.
       Amendments to Section 5313 provide the correct funding 
     authorization citation. Subsection (b) is stricken and the 
     title of Section 5313 is changed to reflect the fact that 
     only the Transit Cooperative Research Program is authorized 
     by this section.
     Conference Substitute
       The Conference adopts the Senate proposal.


          SEC. 3016. NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS

     House Bill
       Sec. 3015.
       Section 5314 of title 49, United States Code is amended to 
     delete the word ``Planning'' in the heading because the focus 
     of the section is on research and to include ``Technology'' 
     in the heading to reflect the activities carried out under 
     this subsection. Other amendments under this subsection 
     correct the funding authorization citations and eliminate 
     references to the planning sections of the title. The 
     Secretary is required to continue to make funds available to 
     help public transportation providers comply with the 
     Americans With Disabilities Act of 1990. Under this section, 
     the term ``other transactions'' is included to provide the 
     Federal government with discretion to enter into project 
     agreements under terms that encourage private parties to 
     participate in federally assisted projects. The Industry 
     Technical Panel composed of transportation suppliers and 
     others involved in technology development is eliminated 
     because the panel is no longer needed.
     Senate Bill
       Sec. 6016.
       Project Action is continued at current funding levels.
       Operational demonstration contracts are allowed under 
     conditions set by the Secretary.
       Section 5314(a)(3) is amended to relieve the compliance 
     requirement with Section 5333(b).
       Current Section 5314(a)(4)(B) requires FTA to establish an 
     Industry Technical Panel composed of transportation suppliers 
     and others involved in technology development. This provision 
     is deleted.
       A new Subsection (a)(6) is added to establish a program of 
     medical transportation demonstration grants. These grants 
     will be focused on improving methods of transportation for 
     persons in need of kidney dialysis.
       A new National Technical Assistance Center for Senior 
     Transportation would be established in a new Section 5314(c). 
     Similar to Project Action, the Center would undertake 
     research, provide technical assistance, and make 
     demonstration grants on methods to improve transportation for 
     elderly individuals.
       A study is required by Section 5314(d) on how to increase 
     the use of alternative fuels in public transportation.
     Conference Substitute
       Adopts the House proposal, and changes the term ``other 
     transactions'' to ``other agreements''. The Senate's medical 
     transportation demonstration grants program, the National 
     Technical Assistance Center for Senior Transportation, and 
     the alternatives fuel study are adopted.


                 SEC. 3017. NATIONAL TRANSIT INSTITUTE

     House Bill
       Sec. 3016.
       Section 5315 of title 49, United States Code is amended by 
     striking references to mass transportation because public 
     transportation is defined to mean mass transportation under 
     the transit program.
     Senate Bill
       Sec. 6017.
       The National Transit Institute will be continued at Rutgers 
     University.
       Currently, Section 5315(a) requires establishment of the 
     National Transit Institute (NTI) at Rutgers University. This 
     subsection would continue the Institute at this location for 
     the new authorization period. The Committee is concerned 
     about the effectiveness

[[Page H7478]]

     of programs at the NTI and directs the Federal Transit 
     Administration to exercise careful oversight over its 
     operation to assure that the Institute is producing benefits 
     commensurate with the investment being made. The requirement 
     in Section 5315(b) for the Secretary to delegate all 
     authority to NTI to develop and conduct education and 
     training programs is deleted.
     Conference Substitute
       Adopts the Senate proposal.


        SEC. 3018. JOB ACCESS AND REVERSE COMMUTE FORMULA GRANTS

     House Bill
       Sec. 3017.
       This section codifies under 49 U.S.C. 5316 the Job Access 
     And Reverse Commute (JARC) program authorized under section 
     3037 of the Transportation Equity Act for the 21st Century. 
     The program was established to assist welfare recipients and 
     low-income individuals in getting to and from jobs.
       The program establishes a formula for JARC funds that 
     apportions 60 percent of the funds to designated recipients 
     in urbanized areas with a population of 200,000 or more in a 
     ratio reflecting the number of eligible low-income and 
     welfare recipients in each urbanized area with a population 
     of 200,000 or more; 20 percent of the funds are apportioned 
     among the states in a ratio reflecting the number of eligible 
     low-income and welfare recipients in urbanized areas with 
     populations of less than 200,000 in each state; and 20 
     percent of the funds are apportioned among states in a ratio 
     reflecting the number of low-income individuals and welfare 
     recipients in other than urbanized areas in each state.
       The funds must be used for eligible projects in the 
     designated areas, except funds made available in urbanized 
     areas with populations less than 200,000 and nonurbanized 
     areas may be transferred for projects anywhere in the state 
     if the state has established a statewide program for meeting 
     the objectives of this section and the Governor of the state 
     certifies that all of the objectives of this section are 
     being met in the specific area. The recipient of JARC funds 
     in an urbanized area with a population of 200,000 or more 
     must conduct a competitive process for an areawide 
     solicitation for applications for grants to the recipients 
     and subrecipients. Statewide solicitations must be 
     conducted in urbanized areas of less than 200,000 and in 
     nonurbanized areas for applications for grants to the 
     recipients and subrecipients. All grants shall be awarded 
     on a competitive basis.
       A JARC grant is subject to section 5307 formula grant 
     requirements and a recipient of a grant must certify to the 
     Secretary that allocations of the grant to subrecipients are 
     distributed on a fair and equitable basis. The Federal share 
     for capital projects may not exceed 80 percent of the net 
     capital cost and for operating assistance the Federal share 
     may not exceed 50 percent of the net operating costs. The 
     non-Federal share may be provided from a variety of sources, 
     including other Federal funds (other than from the Department 
     of Transportation). Funds made available through the Social 
     Security Act may also be used for the remainder of the cost 
     of the project.
       The Comptroller General is required to conduct a study to 
     evaluate the JARC grant program and transmit the results to 
     the Congress. The study must begin within one year after the 
     enactment of the Federal Transportation Act of 2005, and 
     every two years thereafter. Not later than three years after 
     the date of enactment of this section, the Secretary must 
     conduct a study to evaluate the effectiveness of recipients 
     making grants to subrecipients and transmit the report to 
     Congress.
     Senate Bill
       Sec. 6038.
       The JARC program continues as a competitive discretionary 
     program. The coordination requirements are amended to conform 
     to the changes made in Sections 5307, 5310, and 5311. Section 
     3037(b)(2) is amended to clarify that funds can be used for 
     the provision of service as well as the development of 
     service.
       Section 3037(b) is amended to expand the definition of 
     `eligible low-income individual' to allow States the 
     flexibility to use JARC funds to assist the same individuals 
     as assisted under the State-administered Temporary Assistance 
     to Needy Families program (TANF).
       The Senate requires projects to be drawn from a human 
     service transportation coordination plan. Section 3037(j) is 
     amended to change the terms and conditions of JARC grants to 
     match the type of recipient. Under current law, all JARC 
     grants are subject to the terms and conditions of Section 
     5307, including those to recipients in other than urbanized 
     areas, or recipients who are private non-profit 
     organizations. This represents a significant burden to these 
     recipients, since the requirements are tailored to public 
     agencies in urbanized areas.
     Conference Substitute
       Adopts the House proposal, establishing the job access and 
     reverse commute grants program as a formula program, rather 
     than a competitive discretionary grants program. Current law 
     labor protections are retained. The conferees are aware that 
     the Federal Transit Administration has recognized the 
     challenges of providing public transportation services to 
     individuals transitioning from welfare to work, particularly 
     in rural areas. The conferees expect the FTA to continue its 
     practice of providing maximum flexibility to job access 
     projects that are designed to meet the needs of individuals 
     who are not effectively served by public transportation, 
     consistent with the use of funds described in the Federal 
     Register, Volume 67 (April 8, 2002).


                     SEC. 3019. NEW FREEDOM PROGRAM

     House Bill
       Sec. 3018.
       This section authorizes a new program requested by the 
     Administration to address the transportation needs of persons 
     with disabilities at all income levels. The New Freedom 
     Program is codified as section 5317 of title 49, United 
     States Code, a section that is repealed under current law. 
     Under the New Freedom Program, the Secretary would make 
     grants to a recipient for new transportation services and 
     public transportation alternatives beyond the Americans With 
     Disabilities Act of 1990 (ADA) to assist individuals with 
     disabilities with transportation needs.
       With the passage of the ADA, it has become a civil rights 
     violation to deny access to persons with disabilities to 
     public transportation. The New Freedom formula grant program 
     was proposed by the administration and has been included in 
     this legislation to provide additional tools to overcome 
     existing barriers facing Americans with disabilities seeking 
     integration into the work force and full participation in 
     society. Lack of adequate transportation is a primary barrier 
     to work for people with disabilities. The 2000 Census showed 
     that only 60 percent of people between the ages of 16 and 64 
     with disabilities are employed. The New Freedom formula grant 
     program will expand the transportation mobility options 
     available to persons with disabilities beyond the 
     requirements of the ADA. Examples of projects and activities 
     that might be funded under the program include, but are not 
     limited to:
        Purchasing vehicles and supporting accessible 
     taxi, ride-sharing, and vanpooling programs.
        Providing paratransit services beyond minimum 
     requirements (3/4 mile to either side of a fixed route), 
     including for routes that run seasonally.
        Making accessibility improvements to transit and 
     intermodal stations not designated as key stations.
        Supporting voucher programs for transportation 
     services offered by human service providers.
        Supporting volunteer driver and aide programs.
        Supporting mobility management and coordination 
     programs among public transportation providers and other 
     human service agencies providing transportation.
       A state may use up to 10 percent of the amount it receives 
     under this section to administer, plan, and provide technical 
     assistance. Funds would be apportioned based on a formula 
     that apportions 60 percent of the funds to designated 
     recipients in urbanized areas with a population of 200,000 or 
     more in a ratio reflecting the number of individuals with 
     disabilities in each such urbanized area; 20 percent of the 
     funds are apportioned among the states in a ratio reflecting 
     the number of individuals with disabilities in urbanized 
     areas with a population of less than 200,000; and 20 percent 
     of the funds are apportioned among the states in a ratio 
     reflecting the number of individuals with disabilities in 
     non-urbanized areas in each state.
       The Secretary requires a recipient of a grant to coordinate 
     the New Freedom program activities with other related program 
     activities of other Federal agencies. Also a recipient that 
     transfers funds to the urbanized area formula grant program 
     must certify that the project for which funds are requested 
     had been coordinated with nonprofit providers of services. 
     Beginning in fiscal year 2007, a recipient will also be 
     required to certify that projects selected were derived from 
     a locally developed, coordinated public transit-human 
     services transportation plan and that the plan was developed 
     through a process that involved individuals of the public, 
     private, and nonprofit transportation and human services 
     providers.
       The Federal share for the net project capital cost of a 
     project may be up to 80 percent, and not more than 50 percent 
     of the net operating cost of a project.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       Adopts the House proposal, establishing a new formula 
     grants program that will provide funds for new transportation 
     services and public transportation alternatives beyond the 
     Americans With Disabilities Act of 1990 (ADA) to assist 
     individuals with disabilities with transportation needs. 
     Section 5333 labor protections are not extended in this new 
     program.


                    SEC. 3020. BUS TESTING FACILITY

     House Bill
       Sec. 3019.
       This section amends section 5318 of title 49, United States 
     Code, to delete the requirement for the Secretary to 
     establish one bus testing facility because the facility has 
     already been established in Altoona, Pennsylvania. The 
     Secretary is required to maintain the facility. The 
     provisions under section 5318 that establishes a revolving 
     loan fund for expenses related to operating and maintaining 
     the facility are deleted because the bus testing facility 
     relies on state resources

[[Page H7479]]

     to pay for those costs, and has never requested a loan. The 
     provision concerning the acquisition of new bus models is 
     moved to this section from section 5323(c) for clarity.
     Senate Bill
       Sec. 6018.
       Special testing requirements for `New Model' buses are 
     continued.
       Technical changes are made in the requirements for the 
     testing of new model buses.
     Conference Substitute
       Adopts the Senate provision, maintaining the current law 
     funding and requirements of the bus testing facility.


    SEC. 3021. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC LANDS

     House Bill
       Sec. 3021.
       This section establishes a new program to provide for 
     public transportation in units of the National Park System, 
     to be administered by the Secretary of Transportation in 
     consultation with the Secretary of the Interior. The 
     definition of public transportation for the pilot program 
     means general or special transportation to the public by a 
     conveyance that is publicly or privately owned. The 
     definition does not include school bus or charter 
     transportation, but does include sightseeing transportation. 
     Within 90 days after the enactment of this section, the 
     Secretary of Transportation and the Secretary of the Interior 
     must enter into a memorandum of understanding (MOU) to 
     establish a transit in the parks pilot program to encourage 
     and to promote the development of transportation systems to 
     improve visitor mobility and enjoyment, reduce pollution and 
     congestion, and enhance resource protection through the use 
     of public transportation.
       The Secretary of Transportation will administer the pilot 
     program in consultation with the Secretary of the Interior. 
     The MOU entered into between the Secretaries must be 
     consistent with the planning processes required under Chapter 
     52 of title 49 and include descriptions of programs and 
     activities eligible for assistance under the pilot program. 
     The Secretary of the Interior may carry out eligible 
     transportation projects as permitted under the interagency 
     agreements. The Government's share for any capital project or 
     activity carried out under the pilot program is 100 percent 
     of the net project costs. Operating assistance grants may not 
     exceed 50 percent of the net operating costs of the project.
     Senate Bill
       Sec. 6040.
       This section funds, for the first time, a program to 
     provide funding for public transportation in National Parks 
     and public lands at a level of $25 million per year. The 
     Departments of Transportation and Interior will work 
     cooperatively to develop and select capital projects.
       Under this program, the Departments of Transportation and 
     Interior will work cooperatively to select capital projects 
     for funding within and in the vicinity of sites in the 
     National Park System, the National Wildlife Refuges, Federal 
     recreational areas, and other public lands, including 
     National Forest System lands. This program will help the 
     parks make investments in traditional public transportation, 
     such as shuttle buses or trolleys, or other types of public 
     transportation appropriate to a park setting, such as 
     waterborne transportation or bicycle and pedestrian 
     facilities.
     Conference Substitute
       The Conference adopts the Senate proposal, with 
     modifications to make National Forest System lands explicitly 
     eligible and to add bicycle and pedestrian projects to the 
     definition of alternative transportation. In addition, 
     language was added to ensure that projects carried out under 
     this program are consistent with other transportation 
     policies of the Department of the Interior and other federal 
     land management agencies. Section 5333 labor protections are 
     not extended in this new program.


                  SEC. 3022. HUMAN RESOURCES PROGRAMS

     House Bill
       Sec. 3022.
       Sections 5312(b) and (c) regarding grants to higher 
     learning institutions and fellowships would be moved to 
     sections 5322(b) and (c) to better fit the organization of 
     the revised section 5312 of title 49, United States Code.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts House language that allows the 
     Secretary to award fellowship grants.


              SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE

     House Bill
       Sec. 3023.
       Amendments are made to section 5323 of title 49, United 
     States Code in this section.
       Subsection 3023(c) regarding conditions on charter bus 
     transportation service amends section 5323(d) by striking the 
     existing law subsection (d)(2) regarding violations of 
     agreements and inserting new language which directs the 
     Secretary to investigate all complaints about violations of 
     the charter service agreement and decide whether a violation 
     has occurred; if a violation has occurred, to correct the 
     violation; and, if a pattern of violations is found, to bar 
     the recipient from receiving funds in an amount the Secretary 
     considers appropriate. Under existing law, the Secretary did 
     not have the flexibility to adjust the amount withheld--the 
     recipient would be barred from receiving further Federal 
     assistance. This overly-broad authority was never used, 
     whereas a more flexible authority to penalize charter 
     violators will encourage a more realistic and responsive 
     approach to charter enforcement by the FTA. The Committee is 
     aware that both public transportation providers and private 
     charter bus providers have expressed strong concerns about 
     the 1987 FTA rule enforcing section 5323(d) regarding charter 
     bus service. The Committee directs the FTA to initiate a 
     rulemaking seeking public comment on the regulations 
     implementing section 5323(d), and to consider certain issues. 
     Consideration of any changes to the current regulation shall 
     not disturb the current law provisions under section 5323(f) 
     regarding school bus transportation.
       A new subsection is included that makes revenue bond 
     proceeds eligible for use as local match for federal transit 
     grants and that authorizes recipients to establish debt 
     service reserves using up to 10 percent of their federal 
     grant funds. The authority to use bond proceeds as local 
     match was established in section 3011 of the Transportation 
     Equity Act for the 21st Century (TEA 21), and FTA has 
     reported that this authority has been beneficial to transit 
     operators. This subsection also permits the Secretary to 
     reimburse recipients for deposits in a debt service reserve 
     established for the purpose of financing transit capital 
     projects, pursuant to section 5302(a)(1)(K). Such 
     reimbursements are capped at 10 percent of the recipient's 
     annual apportionment from section 5307 urbanized area formula 
     grants.
       Subsection 5323(f) regarding school bus transportation is 
     amended to allow the Federal Transit Administration to assess 
     fines and withhold grant funds if public transportation 
     agencies violate the narrowly defined conditions under which 
     public transportation providers can provide school bus 
     transportation.
       Section 5323(j) regarding Buy America is amended by adding 
     a new requirement that FTA provide a detailed written 
     justification when the agency issues a public interest 
     waiver. Additionally, a new provision is added stating that 
     parties adversely affected by FTA action on Buy America 
     decisions may seek judicial review under the Administrative 
     Procedures Act. The general regulatory waivers for Chrysler 
     15-passenger vans and wagons from the requirement that public 
     transportation vehicles be assembled in the United States are 
     repealed. Section 3023(g)(5) adds a freestanding legislative 
     provision requiring the Secretary to issue a final rule 
     within 180 days of enactment on FTA's implementation of the 
     Buy America requirements. Specifically, the agency is 
     directed to clarify that any waiver issued for microcomputer 
     equipment under the general waiver in subsection (d) of 
     Appendix A of section 661.7 of title 49, Code of Federal 
     Regulations, be applied solely to devices that are used to 
     process or store data, and not extend to products containing 
     a microprocessor, computer, or microcomputer. In directing 
     the Secretary to issue new regulations regarding 
     microprocessors, computers, or microcomputers, there is no 
     intent to change the existing regulatory treatment of 
     software or of microcomputer equipment.
       Under current law, section 5323(l) requires state-managed 
     transit grant programs be subject to State transportation 
     planning requirements in section 135 of title 23, United 
     States Code. Since all transportation planning programs are 
     now addressed under chapter 52 of title 49, U.S.C., section 
     3042 contains a new provision amending section 5323(l) that 
     broadens the applicability of section 1001 of title 18, 
     prohibiting fraudulent statements to the Government, to all 
     certificates, submissions, or statements provided to DOT 
     under Chapter 53 of Title 49. This language is intended to 
     provide a direct tie between 18 U.S.C. 1001 and the punitive 
     recourse of ending financial assistance provided for in the 
     second sentence of new subsection 5323(l). This language is 
     not intended to, and should not be construed to, exclude by 
     implication from the application of 18 U.S.C. 1001 any other 
     matter to which such section would otherwise apply.
     Senate Bill
       Sec. 6022.
       Environmental and public hearing requirements are revised 
     to conform with the applicable cross-cutting statutes.
       The provisions of Section 5323(b) are edited to mesh the 
     statutory requirements of Federal transit law more closely 
     with current practice under the National Environmental Policy 
     Act (NEPA).
       Section 5323(b) is amended to provide the same 
     consideration to comments submitted by mail or electronic 
     means, as the consideration given to comments transcribed at 
     a hearing. In addition, non-English speaking persons or 
     hearing-impaired persons are provided the opportunity to 
     comment through special arrangements.
       This section eliminates the two-step process for announcing 
     a hearing. Under the current process, the applicant announces 
     the opportunity for a hearing and then waits for a response. 
     The Senate requires that a hearing be held whenever the 
     project affects significant social, economic, or 
     environmental interests in the community, regardless of 
     whether one has been requested.
       Special terms and conditions for technology deployment 
     projects will be allowed.

[[Page H7480]]

     A new Section 5323(e) allows grants for new technology, 
     including the integration of innovative techniques, subject 
     to the requirements of Section 5309, but only to the extent 
     the Secretary deems appropriate. Revised Subsection (c) 
     strengthens and leverages private sector participation by 
     permitting the Secretary to establish appropriate terms and 
     conditions for projects involving the integration of new 
     innovative or improved products, techniques, or methods.
       Section 3011(a) of TEA-21 allows a recipient of an 
     urbanized area formula grant under Section 5307 or a major 
     capital investment grant under Section 5309 to use proceeds 
     from the issuance of revenue bonds as a local match. This 
     provision is codified in Section 5323(f)(1).
       Debt Service Reserve Funds are made an eligible project 
     activity. Under Section 5323(f)(2), the Secretary could allow 
     a recipient to use Section 5307 or 5309 dollars to reimburse 
     it for deposits made to the debt service reserve. Because 
     Federal transit funds are typically viewed as higher 
     creditworthy revenues, transit bond ratings would be 
     strengthened and interest costs reduced.
       Public transportation agencies can receive land which 
     becomes available as a result of base closures. Subsection 
     (h) is revised to provide for the transfer of lands or 
     interests in lands owned by the United States. The Department 
     of Defense regulations (32 CFR Parts 90 and 91) provide for 
     the disposition of surplus land resulting from the Defense 
     Base Closure and Realignment Act to be transferred free to 
     `grantees' that have Federal sponsors with Federal land 
     transfer statutes.
       Section 5323(m) would be amended to eliminate pre-award and 
     post-delivery audit requirements for private non-profit 
     organizations and grantees serving urbanized areas with fewer 
     than one million people. All manufacturers and suppliers 
     would have to continue to certify compliance with Buy America 
     during the bidding process, and they would remain bound by 
     their original certification. The vast majority of vehicles 
     purchased will still undergo the audits.
     Conference Substitute
       Adopts the Senate proposal regarding interests in property 
     and notice and public hearings. The current law provision 
     under section 5310 states that public transportation 
     operators are not required to charge elderly individuals and 
     individuals with disabilities a fare is expanded to apply to 
     all programs under this chapter.
       Adopts the House proposal regarding conditions on charter 
     bus transportation service. The conferees are aware that both 
     public transportation providers and private charter bus 
     providers have expressed strong concerns about the 1987 FTA 
     rule enforcing section 5323(d) regarding charter bus service. 
     The conferees direct the FTA to initiate a negotiated 
     rulemaking seeking public comment on the regulations 
     implementing section 5323(d), and to consider the issues 
     listed below:
       1. Are there potential limited conditions under which 
     public transit agencies can provide community-based charter 
     services directly to local governments and private non-profit 
     agencies that would not otherwise be served in a cost-
     effective manner by private operators?
       2. How can the administration and enforcement of charter 
     bus provisions be better communicated to the public, 
     including use of internet technology?
       3. How can the enforcement of violations of the charter bus 
     regulations be improved?
       4. How can the charter complaint and administrative appeals 
     process be improved?
       Adopts the House proposal regarding the new eligibility to 
     use bond proceeds as local matching funds, including a 
     maintenance of effort clause. New authority for section 5307 
     funds to be deposited in a debt service reserve is 
     established under a pilot program for 10 eligible recipients, 
     and is established generally for section 5309 funds and a 
     report is directed to be submitted outlining the status and 
     effectiveness of the debt service reserve pilot program.
       The House and Senate both carried identical provisions 
     regarding more effective enforcement of schoolbus 
     transportation violations. This language is adopted. The 
     general provisions regarding a 90 percent government share of 
     costs for Americans with Disabilities Act and Clean Air Act 
     related equipment is expanded to incorporate facilities.
       Adopts the House language regarding updated Buy America 
     regulations. In the final rule, the FTA is directed to define 
     the term ``end product'' for purposes of part 661 of title 
     49, CFR, and to provide that such definition include a list 
     of representative items that are subject to the Buy America 
     requirements, similar to the list of such items under the 
     rolling stock procurements regulations. The purpose of 
     developing such a list and more clearly defining the term end 
     product is to ensure that major system procurements are not 
     used to circumvent the Buy America requirements.
       Adopts the Senate language regarding relationship to other 
     laws, which broadens the applicability of section 1001 of 
     title 18, prohibiting fraudulent statements to the 
     Government, to all certificates, submissions, or statements 
     provided to DOT under Chapter 53 of Title 49.
       Amends the Senate proposal to waive preaward and 
     postdelivery audits for rolling stock to allow procurements 
     of 20 or fewer vehicles being purchased in rural and small 
     urbanized areas under 200,000 in population to be subject to 
     an expedited postdelivery process that does away with the 
     requirement to have an on-site inspector at manufacturers' 
     facilities.
       Adopts the House proposal to allow incidental use of 
     alternative fueling facilities by nontransit users as long as 
     the incidental use does not interfere with the recipient's 
     public transportation operations, and all costs are fully 
     recaptured by the recipient. Revenues under this authority 
     can be used for planning, capital or operating expenses.


           SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS

     House Bill
       Sec. 3024.
       This section makes very minor amendments to section 5324 of 
     title 49, United States Code and changes the title of the 
     section from ``Limitations on discretionary and special needs 
     grants and loans'' to ``Special provisions for capital 
     projects,'' which is more descriptive of the provisions 
     contained therein regarding relocation program requirements 
     and consideration of economic, social, and environmental 
     interests.
     Senate Bill
       Sec. 6023.
       Environmental and relocation assistance requirements are 
     revised to conform to applicable cross-cutting statutes (NEPA 
     and Uniform Relocation Assistance Act).
       Section 5324(a) is amended to reference the relevant 
     sections of the Uniform Relocation Assistance and Real 
     Property Acquisition Policies Act (`the Act'), 42 U.S.C. 4601 
     et seq., directly, rather than referencing only two of the 
     numerous conditions contained in the Act.
       Section 5324(b) continues to allow protective and hardship 
     acquisitions as defined in 23 CFR 771.117, but it also allows 
     advance acquisition where the strict requirements associated 
     with a protective acquisition are not met. This provision 
     allows for the acquisition when market forces dictate, and 
     thereby avoids multiple transactions on the same property and 
     the associated escalation in cost. A strictly limited number 
     of such advance acquisitions is allowed without prejudice to 
     the consideration of alternative locations or alternative 
     projects.
       Section 5324(c) addresses FTA's current practice of 
     allowing the acquisition of pre-existing railroad right of 
     way (ROW) in advance of any specific project decisions on how 
     the ROW will be used. Any changes in the use of the railroad 
     ROW are subject to appropriate environmental review prior to 
     the change.
       Section 5324(d) (formerly Section 5324(b)) meshes the 
     statutory requirements of Federal transit law more closely 
     with current FTA practice under NEPA, and 49 U.S.C. 303 
     (commonly called `Section 4(f)'), and other environmental 
     laws. Reference to the Secretaries of Agriculture, Health and 
     Human Services, and Housing and Urban Development are removed 
     since these agencies rarely have any interest in transit 
     projects.
       The amendment deletes Council on Environmental Quality 
     (CEQ) and substitutes the Administrator of EPA. The Council 
     on Environmental Quality has delegated its routine project 
     review responsibilities to the Environmental Protection 
     Agency (EPA). Section 5324(d) would no longer single out the 
     hearing transcript for greater attention than other valid 
     forms of public comment on a project.
     Conference Substitute
       The conference report includes a rewritten provision that 
     applies the requirements of the Uniform Relocation Assistance 
     and Real Property Acquisition Policies Act of 1970 to all 
     financial assistance for capital projects under this chapter. 
     Adopts House language regarding consideration of economic, 
     social, and environmental interests. Adopts the Senate 
     proposal to allow acquisition of railroad right-of-way before 
     the completion of environmental reviews, if the acquisition 
     is otherwise permitted under Federal law. A railroad corridor 
     purchased in advance under this authority may not be 
     developed before the project has completed all required 
     environmental reviews.


                    SEC. 3025. CONTRACT REQUIREMENTS

     House Bill
       Sec. 3025.
       This section consolidates sections 5325 ``Contract 
     Requirements'' and 5326 ``Special Procurements'' of title 49, 
     United States Code, since the provisions of section 5326 fall 
     within the scope of conditions set on contracts that utilize 
     federal funds provided under chapter 53 of title 49, United 
     States Code. Under the revised subsection 5325(a) and (b), 
     recipients of such funds are expressly required to conduct 
     procurements using full and open competition and to use 
     standard architectural, engineering, and design contract 
     award procedures. A new subsection 5325(d) is added that is 
     identical to existing law section 5326(a), except that the 
     term ``turnkey'' is replaced with the more commonly used term 
     ``design-build'', and references to design-build 
     ``demonstration projects'' are deleted, since design-build 
     contracting has matured beyond the demonstration phase. In 
     addition, design-build contracting does not necessarily 
     result in lower project costs or new technologies and, as a 
     result, this concept as expressed under section 5326(a)(2) in 
     current law is removed.

[[Page H7481]]

     Senate Bill
       Sec. 6024.
       Current provisions regarding procurement and contracts are 
     consolidated in a single section.
       Grantees must refer to the Contractor Performance 
     Assessment Report when selecting contractors to do work on 
     projects seeking FFGAs.
       Competition in all procurements is explicitly established 
     as the presumptive standard. Existing Section 5307 requires 
     the use of competitive procurement as defined or approved by 
     the Secretary in carrying out procurement under that section. 
     Section 5325(a) is amended to expressly require the use of 
     competitive procurement procedures for any procurement 
     carried out under Chapter 53. The revised language in 
     redesignated Section 5325(b)--referred to as `The Brooks 
     Act'--clarifies that program management is limited to 
     architectural, engineering, and design contracts. Also, the 
     reference to 23 U.S.C. 112(b)(2)(C) through (F), which deals 
     with performance and audit standards and indirect cost rates, 
     is removed. Instead, Subsection (b) is revised specifically 
     to include these provisions.
       TEA-21 allowed for turnkey system projects, also known as 
     design-build contracting, in Federally funded public 
     transportation projects, including demonstration projects. 
     Section 5325(d) (existing Section 5326(a)), replaces the term 
     `turnkey' with the more commonly used term `design-build.'
       Currently, FTA and the Comptroller General can inspect 
     contract records for capital projects receiving Federal 
     transit assistance, but only in cases of `noncompetitive 
     bidding.' New Subsection 5325(g), `Examination of the 
     Records,' strengthens oversight by allowing FTA or the 
     Comptroller General to inspect all contract documents. The 
     `grant prohibition' provision, dealing with contract 
     requirements, was erroneously included under Section 5323, 
     `General Provisions On Assistance,' and is relocated under 
     Section 5325(h).
       A new provision is added to Section 5325(i) to strengthen 
     the requirements that contractors to public transportation 
     agencies must have adequate technical and financial capacity 
     to carry out a proposed contract. This elevates already 
     existing FTA and OMB requirements on third-party contracting 
     to a statutory requirement.
     Conference Substitute
       Adopts the House language regarding architectural, 
     engineering, and design contracts, including the provision 
     that allows State qualifications-based requirements for 
     contracting architectural, engineering, and design services 
     to be employed in lieu of Federal contracting procedures if 
     an equivalent State qualifications-based requirement is 
     established before the date of enactment of the Federal 
     Public Transportation Act of 2005.
       Adopts the House proposal regarding design-build projects 
     and the House language regarding multiyear rolling stock. 
     Both the House and Senate bills included a provision stating 
     that no State law requiring buses to be purchased through in-
     State dealers shall apply to vehicles purchased with a grant 
     under this chapter. This provision is adopted. The Senate's 
     language strengthening the requirements that contractors to 
     public transportation agencies have adequate technical and 
     financial capacity to carry out a proposed contract is also 
     adopted.


           SEC. 3026. PROJECT MANAGEMENT OVERSIGHT AND REVIEW

     House Bill
       Sec. 3026.
       This section amends section 5327 of title 49, United States 
     Code regarding project management oversight activities. The 
     Secretary is authorized to use .5 percent of section 5311 
     funds, .75 percent of section 5307 funds, and 1 percent of 
     section 5309 funds to make contracts for oversight of major 
     transit construction projects, and to review and audit 
     recipients' compliance with federal requirements and provide 
     technical assistance to correct deficiencies identified in 
     such reviews and audits. This is an increase in the amount 
     set aside for such activities above levels set under current 
     law, which provides for .5 percent of section 5307 and 
     section 5311 funds and up to .75 percent for section 5309 
     funds. Comprehensive agency oversight, compliance review, and 
     technical assistance are necessary for all major grant 
     programs, and particularly important for major capital grants 
     such as new starts and rail modernization.
     Senate Bill
       Sec. 6025.
       The takedown for oversight is increased to 1 percent in all 
     programs.
       Given the new security concerns--and in keeping with actual 
     practice in the field--Section 5327(a) is revised to require 
     that a project management oversight (PMO) plan include 
     `safety and security management.'
       The section also provides new authority for the use of 
     oversight funds to conduct analyses which cut across multiple 
     projects. At present, oversight funds may be used only to 
     review each project in isolation. Cross-cutting analyses 
     could help identify major problems which need attention and 
     could help develop best-practice methods which could be 
     gleaned from a review of a set of similar projects.
     Conference Substitute
       Adds safety and security to PMO plans. Authorizes the 
     Secretary to use 0.5% of Section 5305 funds, 0.75% of 5307 
     funds, 1% of 5309 funds, 0.5% of Section 5310 funds, 0.5% of 
     Section 5311 funds, and 0.5% of Section 5320 funds to make 
     contracts for oversight of major transit construction 
     projects, and to review and audit recipients' compliance with 
     federal requirements and provide technical assistance to 
     correct deficiencies identified in such reviews and audits. 
     This is an increase in the amount set aside for such 
     activities above levels set under current law, which provides 
     for .5 percent of section 5307 and section 5311 funds and up 
     to .75 percent for section 5309 funds. Comprehensive agency 
     oversight, compliance review, and technical assistance are 
     necessary for all major grant programs, and particularly 
     important for major capital grants such as new starts and 
     rail modernization.


                       SEC. 3027. PROJECT REVIEW

     House Bill
       No Comparable Provision in House Bill
     Senate Bill
       Sec. 6026.
       The schedules for FTA review of projects in the New Starts 
     process are updated to clarify the relationship to the New 
     Starts process and criteria; the advancement of projects is 
     not automatic, but rather depends on meeting the requirements 
     of that section.
       The concept of Programs of Interrelated Projects is not 
     continued.
     Conference Substitute
       Adopts the Senate proposal, but retains current law 
     provision regarding programs of interrelated projects.


     SEC. 3028. INVESTIGATIONS OF SAFETY HAZARDS AND SECURITY RISKS

     House Bill
       Sec. 3027.
       This section amends section 5329 of title 49, United States 
     Code regarding the Secretary's authority to investigate 
     safety and security risks associated with public 
     transportation equipment, facilities, or operations financed 
     under chapter 53 of title 49, United States Code. The 
     Secretary may withhold any amount of a recipient's Federal 
     assistance until a plan to eliminate, mitigate, or correct 
     the hazard has been approved and carried out.
     Senate Bill
       Sec. 6027.
       FTA investigation authority is expanded expressly to 
     include security issues. Section 5329 authorizes FTA to 
     investigate `safety hazards,' but does not authorize FTA 
     expressly to investigate `security' matters. This section is 
     amended to promote active cooperation between FTA and its 
     grantees on security matters, by clarifying that FTA may 
     assist grantees on security matters and investigate security 
     concerns without notice of a specific breach of security at a 
     transit system.
       The penalty for failure to address issues is modified. The 
     existing section also contains an `all or nothing' provision 
     that authorizes the Secretary to withhold `further financial 
     assistance' upon a transit system's failure to correct a 
     safety hazard. Section 5329 allows the Secretary to determine 
     the amount of funding to be withheld.
       A new requirement is added for a Memorandum of 
     Understanding between the Departments of Transportation and 
     Homeland Security specifying the details of how the agencies 
     would cooperate on setting national security standards for 
     public transportation, would establish funding priorities for 
     DHS grants to public transportation agencies, and would 
     coordinate with each other and public transportation agencies 
     on security matters.
     Conference Substitute
       The conference report adopts a modified version of the 
     Senate provision. In addition to the original Senate security 
     provisions authorizing security and safety investigations and 
     penalties, the conference report requires an annex to the 
     memorandum of understanding signed by the Departments of 
     Transportation and Homeland Security on September 28, 2004 to 
     define and clarify the respective transit security roles and 
     responsibilities of each Department. The conference report 
     also mandates a joint rulemaking outlining the requirements 
     and characteristics of any public transportation security 
     grants, including funding priorities and eligible 
     expenditures.


                   SEC. 3029. STATE SAFETY OVERSIGHT

     House Bill
       Sec. 3028.
       This section amends section 5330 of title 49, United States 
     Code by changing the heading from ``Withholding amounts for 
     noncompliance with safety requirements'' to reflect the more 
     commonly used title of ``State safety oversight.'' Under this 
     section, a State is required to establish and carry out a 
     safety program plan for rail-based new starts projects. 
     Commuter rail systems that operate on the general railway 
     system are subject to the safety rules and oversight of the 
     Federal Railroad Administration. Amendments to subsection 
     5330(a) ensure that safety is considered well before a rail-
     based new start project begins revenue service. In subsection 
     5330(d), rail-based new start projects that operate in two or 
     more States are required to have a unified safety program 
     plan.
     Senate Bill
       Sec. 6028.
       Safety oversight is required during the design phase of New 
     Starts.
       States can designate a single agency to handle oversight of 
     systems serving more than one State.

[[Page H7482]]

       Section 5330 is amended to change the heading to 
     `Withholding Amounts for Non-Compliance with State Safety 
     Oversight Requirements' the better to reflect the 
     requirements in this section.
       Amendments to Section 5330 ensure that safety is considered 
     well before a rail fixed-guideway system begins revenue 
     service, i.e., during the design phase of the project.
     Conference Substitute
       Adopts the House proposal.


      sec. 3030. controlled substances and alcohol misuse testing

     House Bill
       Sec. 3029.
       This section amends section 5331 of title 49, United States 
     Code regarding drug and alcohol testing of public 
     transportation employees, allowing the Secretary to apply a 
     single agency's drug and alcohol testing regime if a 
     particular transportation provider is subject to more than 
     one agency's rules. Currently, section 5331 authorizes the 
     Secretary to exclude from FTA drug and alcohol testing those 
     public transportation providers that are adequately covered 
     by the Federal Motor Carrier Safety Administration or the 
     Federal Railroad Administration testing statutes. The 
     amendment to subsection 5331(a) expands the Secretary's 
     authority to exclude from FTA testing those public 
     transportation providers that are adequately covered under 
     other Federal or Departmental testing, such as the U.S. Coast 
     Guard's testing provisions applicable to ferryboat employees.
     Senate Bill
       Sec. 6030.
       Section 5331 is amended to expand the Secretary's authority 
     to exclude from FTA testing requirements, those public 
     transportation providers that are adequately covered under 
     other Federal or Departmental testing statutes or 
     regulations, such as the U.S. Coast Guard's testing 
     provisions applicable to ferryboat employees.
     Conference Substitute
       The Conference adopts the House version.


              sec. 3031. employee protective arrangements

     House Bill
       Sec. 3030.
       This section amends Section 5333 of title 49, United States 
     Code making conforming changes to ensure that all federal 
     public transportation grant programs are subject to fair 
     labor standards and employee protective arrangements.
     Senate Bill
       Sec. 6031.
       The time for severance pay and benefits for transit workers 
     is reduced to four years to comport with existing rail worker 
     protections for Class III railroads. The Senate notes that 
     this change does not alter requirements for severance pay for 
     workers covered under other laws, such as those governing the 
     rights of railroad workers or the collective bargaining 
     process.
       The Senate language harmonizes competitive bidding 
     requirements under Federal law with Federal labor law 
     governing transportation workers. This bill provides that 
     13(c) requirements do not automatically attach to newly 
     solicited contracts, or require that an identical workforce 
     or identical workplace management rules be maintained under 
     new contracts. Carrying over benefits from contractor to 
     contractor was not envisioned when Section 13(c) was enacted 
     and as such, this restores the original intent of Section 
     13(c). The bill codifies the Department of Labor's decision 
     (commonly referred to as the `Las Vegas' decision), which 
     found that a change in contractors would not extinguish 
     obligations under prior Section 5333(b) arrangements. Thus, 
     this provision is not intended to extend, expand, or contract 
     labor protection collective bargaining terms and conditions 
     applicable to subsequent contracts.
       Grants for purchase of like-kind equipment or facilities do 
     not have to be referred by the Department of Labor prior to 
     certification. In addition, the Senate language establishes 
     in law a Special Warranty now applied by administrative 
     practice in the Section 5311 program for other-than-
     urbanized-areas and applies it in the Job Access and Reverse 
     Commute Program.
       Sec. 6031.
     Conference Substitute
       The conference report adopts the Senate proposal to 
     establish in law a special warranty for Section 5311 
     programs.
       In addition, the conference report adopts the Senate 
     proposal regarding like kind grants with a modification to 
     limit the provision to certify without referral to situations 
     that do not materially revise or amend an existing assistance 
     agreement.
       The Senate bill included changes to 49 USC 5333(b) 
     regarding rights afforded to employees under this section 
     when one private contractor replaces its predecessor as a 
     result of competitive bidding. The Conferees agree that the 
     so-called contractor-to-contractor issues were addressed in 
     the Department of Labor's Las Vegas decision dated September 
     21, 1994, as clarified by the supplemental ruling dated 
     November 7, 1994. The Conferees expect that when the 
     Department of Labor (DOL) is called upon to resolve such 
     issues in similar bus transit situations, the agency shall 
     apply the principles, as applied to the facts, set forth in 
     the Department's Las Vegas rulings, without otherwise 
     affecting existing protective arrangements. This affirmation 
     of existing DOL policy shall not serve as a basis for 
     objections under 29 CFR 215.3(d).
       Finally, Section 5333(b) is not applied to the new programs 
     created in conference report, Section 5317 (New Freedom) and 
     Section 5320 (Alternative Transportation in Parks and Public 
     Lands) programs.


                  sec. 3032. administrative procedures

     House Bill
       Sec. 3031.
       This section amends section 5334 of title 49, United States 
     Code regarding the Secretary of Transportation and Federal 
     Transit Administration's authority to administer programs 
     carried out under chapter 53 of title 49, United States Code. 
     The Secretary is prohibited from regulating public 
     transportation provider's routes, schedules, and rates, 
     except in the case of a national or regional emergency. A new 
     subsection 5334(c)(5) has been added that requires the FTA to 
     subject non-regulatory substantive policy statements to a 60-
     day public review notice and comment period. Currently, 
     FTA circulars, letters, or other policy statements can be 
     issued without the benefit of the same public review and 
     comment process that is required under the regulatory 
     process. However, such documents often carry the same 
     weight and penalties as regulations. An example of this 
     ``unwritten rule'' is the $500 million per project 
     limitation FTA has placed on the Federal commitment on a 
     full funding grant agreement issued under the authority of 
     section 5309. Although such a project cost limitation 
     might be a valid policy, it has not been published in a 
     form that allows for comment from the affected transit 
     community. The provision added in subsection (c)(5) will 
     add transparency to FTA's administrative procedures and 
     provide opportunity for public review and feedback.
     Senate Bill
       Sec. 6032.
       Amends Section 5334(a) to clarify that FTA has explicit 
     authority to issue regulations.
       Current Section 5324(c), `Prohibitions Against Regulating 
     Operations and Charges,' is moved to Section 5334, 
     `Administrative Provisions,' as a new Subsection (b). It is 
     appropriate to house this prohibition in the `Administrative 
     Provisions' section and make it expressly applicable chapter-
     wide, rather than on capital projects only. While it has been 
     the practice of FTA to forego any regulation of operations or 
     charges with respect to any grant based on legislative 
     history, current law is ambiguous. Moving this provision will 
     clarify that FTA may not regulate operations or charges, 
     except in emergencies. The appropriate Federal role in public 
     transportation is to provide financial assistance only, and 
     not to regulate operations. Also, this provision is amended 
     to specify that the Secretary is prohibited from regulating a 
     recipient's routes, schedules, rates, fares, tolls, and 
     rentals, just as this provision had specified prior to the 
     recodification of the Federal Transit Act into 49 U.S.C. 
     Chapter 53 in 1994. In light of the September 11 terrorist 
     attacks, this provision is further amended to allow the 
     Secretary of Transportation, under direction by the 
     President, to regulate the operation of and charges for 
     public transportation systems for purposes of national 
     defense or in the event of a national or regional emergency.
     Conference Substitute
       Adopts the House proposal. The provision regarding 
     nonregulatory substantive policy statements is amended to 
     apply more narrowly to agency statements that impose a 
     binding obligation on recipients of Federal assistance under 
     this chapter. Such statements shall be subject to rulemaking 
     procedures under the Administrative Procedure Act.


                  sec. 3033. national transit database

     House Bill
       Sec. 3032.
       This section amends Section 5335 of title 49, United States 
     Code by striking subsection (b) regarding a transferability 
     report that was completed in 1993. The section header is 
     amended from the current law title ``Reports and audits'' to 
     ``National transit database'' to reflect the revised contents 
     of the section.
     Senate Bill
       Sec. 6033.
       Section 5335(b), requiring that the Comptroller General 
     submit `transferability reports' to Congress, is removed, as 
     the report is no longer needed on a recurring basis. 
     Information on the use of flexible funding under Title 23 is 
     readily available.
     Conference Substitute
       Adopts the Senate provision. Beginning in 2006, the 
     national transit database will be funded as a takedown from 
     the formula grants programs at $3,500,000 a year.


              sec. 3034. apportionments of formula grants

     House Bill
       Sec. 3040.
       This section establishes a new set-aside program from the 
     section 5307 urbanized area formula grants that provides a 
     small bonus grant payment to urbanized areas under 200,000 in 
     population that operate at a level of service above the 
     industry average level of service in similarly-sized 
     urbanized areas in one or more of six performance categories: 
     passenger miles traveled per vehicle revenue

[[Page H7483]]

     mile, passenger miles traveled per vehicle revenue hour, 
     vehicle revenue miles per capita, vehicle revenue hours per 
     capita, passenger miles traveled per capita, and passengers 
     per capita. These performance categories and a methodology 
     established for providing bonus grants were established in 
     the September 2000 FTA report to Congress called ``The 
     Urbanized Area Formula Program and the Needs of Small Transit 
     Intensive Cities.''
     Senate Bill
       Sec. 6034
       For basic apportionments, the existing urbanized area 
     formula continues as in current law.
       The `Transit Intensive Cities' tier would allocate funds to 
     small urbanized areas with transit service levels 
     (represented by revenue vehicle hours) per capita greater 
     than the per capita service levels in areas with population 
     of 200,000 to 1,000,000 on the basis of transit service 
     levels. Funds from this tier are available for capital 
     purposes only.
       A provision is added to require a study of incentives which 
     might be added to the urbanized area and other-than-urbanized 
     area formula programs. In light of numerous questions about 
     how such a program as proposed by the Administration would 
     work, the factors to be considered, and the manner in which 
     grants could be used, the Senate instead calls for a study of 
     the issues involved in establishing such a program. The 
     report should address the possibility of rewarding 
     improvements in ridership (as was proposed by the 
     Administration) as well as improvements in efficiency (cost 
     per unit of service provided), effectiveness (service 
     utilization per unit of service provided), and cost-
     effectiveness (cost per unit of service utilization).
     Conference Substitute
       Adopts the House version of the ``Small Transit Intensive 
     Cities'' formula program, with annual funding at one percent 
     of the total amount made available for formula programs. 
     Adopts the Senate's incentives in formula programs study and 
     provides that 60 percent of the directional route mileage of 
     the Alaska Railroad system be attributable to that system.


       sec. 3035. apportionments based on fixed guideway factors

     House Bill
       Sec. 3033.
       This section amends Section 5337 of title 49, United States 
     Code regarding apportionment formulas for the fixed guideway 
     modernization program. The provision regarding route segments 
     to be included in the apportionment formula is amended to 
     delete the ``1997 Standard'' that held eligible rail system 
     mileage to the number of miles a system reported in fiscal 
     year 1997.
     Senate Bill
       No similar provision.
     Conference Substitute
       Does not adopt the House elimination of the 1997 Standard. 
     Makes an adjustment to a small urbanized area with a fixed 
     guideway system to treat the system as a large urbanized area 
     for purposes of apportionments based on fixed guideway 
     factors.


                       sec. 3036. authorizations

     House Bill
       Sec. 3034.
       This section amends Section 5338 of title 49, United States 
     Code, making FTA program funds available on an annual basis 
     for the fiscal year 2004-2009 authorization period. The major 
     FTA programs are Formula Grants, Capital Investment Grants, 
     Planning, Research, and Administrative Expenses. A new 
     organizational structure is adopted to separate the fiscal 
     year 2004 funding, which splits every account's funding 
     between the Mass Transit Account and the general fund at an 
     80:20 ratio (current law structure), from funding for fiscal 
     years 2005-2009, which is either 100 percent trust funded or 
     100 percent general funded. The programs that will be 100 
     percent trust funded in fiscal years 2005-2009 are Formula 
     Grants and Planning, as well as the bus and bus related 
     facilities grants and the fixed guideway modernization grants 
     under Capital Investment Grants. The programs that will be 
     100 percent general funded in fiscal years 2005-2009 are 
     Research, Administration, and the new starts and small starts 
     programs under Capital Investment Grants. This restructuring 
     of the program financing will prevent an accounting problem 
     with the spending rate of the Mass Transit Account. By not 
     split-funding any programs, each program will outlay at its 
     actual spending rate.
       The Formula Grants programs comprise 54 percent of the 
     total transit programs. There are a number of allocations 
     made from the total formula grants funding for: new bus model 
     testing, grants to the Alaska Railroad, over-the-road bus 
     accessibility equipment costs, the new Transit in the Parks 
     pilot program, the transit portion of funding for the non-
     motorized transportation pilot program authorized in section 
     1121(b) of the bill, the New Freedom program, the Job Access 
     and Reverse Commute grant program, and the Clean Fuels grant 
     program. After these allocations of funds have been made, the 
     remainder of the aggregate amount is allocated in the 
     following percentages: 2.5 percent to the elderly and 
     disabled formula grant program, 8 percent to the nonurbanized 
     formula grant program, and 89.5 percent to the urbanized area 
     formula grant program. The percentage shares for the elderly 
     and disabled program grants and for the nonurbanized formula 
     grants have been increased over such shares under current 
     law.
       The Capital Investment Grants programs comprise 43 percent 
     of the total transit programs. The four Capital Investment 
     Grant programs (fixed guideway modernization, new starts, 
     small starts, and bus and bus-related facilities) receive 
     funding allocations under section 5309(m).
       Planning grant fund apportionments to metropolitan areas 
     and states are provided under subsection 5338(c). For fiscal 
     year 2004, the funding is split-funded and for fiscal years 
     2005-2009, the funding is derived from the Mass Transit 
     Account. The percentage of planning funds allocated to 
     metropolitan areas is 82.72 percent and 17.28 percent is 
     apportioned to states for state planning activities, the same 
     percentages as provided under current law.
       The Research program is funded under subsection 5338(d). 
     For fiscal year 2004, the funding is split-funded, and for 
     fiscal years 2005-2009, the funding is authorized to be 
     appropriated from the general fund. There are a number of 
     allocations made from the total formula grants funding for: 
     the transit cooperative research program, management of the 
     national transit database, the National Transit Institute 
     transit training facility at Rutgers University, and Project 
     Action, a national technical assistance program for providers 
     of transportation services to the disabled. The remainder of 
     funds under this subsection are available for the national 
     research and technology programs. In subsection 5338(e), 
     funding is authorized for university transportation research. 
     This complements funding made available for these programs 
     under the Federal-aid Highway program in Title V of the bill.
       Funding for administration of the Federal transit programs 
     is provided under subsection 5338(f). For fiscal year 2004, 
     the funding is split-funded, and for fiscal years 2005-2009, 
     the funding is authorized to be appropriated from the general 
     fund.
     Senate Bill
       Sec. 6036.
       Section 5338 authorizes amounts from the General Fund, and 
     makes available amounts from the Mass Transit Account of the 
     Highway Trust Fund, to carry out Federal public 
     transportation programs in Fiscal Years 2005 through 2009. 
     Funds from the Mass Transit Account are provided as `contract 
     authority.'
       Section 5338(a), provides funds for all programs for Fiscal 
     Year 2005 in accordance with the Consolidated Appropriations 
     Act.
       Section 5338(b) Formula Grants and Research, provides funds 
     for Fiscal Years 2006 through 2009 from the Mass Transit 
     Account to carry out Sections 5305, 5307, 5308, 5309 (bus and 
     fixed-guideway modernization), 5310-5318, 5322, 5335 and 5505 
     of Title 49, and Sections 3037 and 3038 of Pub. L. 105-178. 
     It also provides for a takedown for grants to the Alaska 
     Railroad for improvements to its passenger operations under 
     Section 5307.
       Section 5338(c), Major Capital Investment Program Grants, 
     authorizes appropriations from the General Fund in Fiscal 
     Years 2006 through 2009 to carry out Section 5309 (New 
     Starts). Section 5338(c) authorizes funds from the Trust Fund 
     for administrative expenses. Amounts available under 
     Subsections (a) and (b) remain available until expended and 
     grants financed from amounts derived from the Mass Transit 
     Account or through advance appropriations under those 
     subsections would be contract authority.
       Grants for both planning programs are mainstreamed into 49 
     U.S.C. 5308. Funding for the planning programs are authorized 
     as a takedown from the Urbanized Area Public Transportation 
     Formula Grants account.
       The bill provides that 1.75 percent of the funds are 
     available for planning in Fiscal Years 2006 through 2009. 
     This percentage represents a minimal increase over previous 
     Fiscal Years. The amount proposed in fiscal year 2005 takes 
     into account that this fiscal year will be the first year of 
     reauthorization and is based on the Consolidated 
     Appropriations Act.
       The bill provides funding for the National Transit Database 
     (NTD) authorized under Section 5335 in fiscal years 2006 
     through 2009. The NTD workload has increased substantially 
     with the advent of monthly reporting on safety and security 
     and with the new requirements for the phased in rural and 
     asset condition reporting.
     Conference Substitute
       Section 5338 authorizes amounts from the General Fund, and 
     makes available amounts from the Mass Transit Account of the 
     Highway Trust Fund, to carry out Federal public 
     transportation programs in Fiscal Years 2005 through 2009. 
     Funds from the Mass Transit Account are provided as `contract 
     authority.'
       Section 5338(a) provides funds for all programs for Fiscal 
     Year 2005 in accordance with the Consolidated Appropriations 
     Act.
       Section 5338(b), Formula and Bus Grants, provides funds for 
     Fiscal Years 2006 through 2009 from the Mass Transit Account 
     to carry out all programs except New Starts, Research 
     (including University Transportation Centers), and FTA 
     Administration. Amounts are specified for each program for 
     each fiscal year.
       The bill provides funding from the Trust Fund in Section 
     5338(b) for the National Transit Database (NTD) authorized 
     under Section 5335 in fiscal years 2006 through 2009. The NTD 
     workload has increased substantially with the advent of 
     monthly reporting

[[Page H7484]]

     on safety and security and with the new requirements for the 
     phased in rural and asset condition reporting.
       Grants for both planning programs are mainstreamed into 49 
     U.S.C. 5305. Funding for the planning programs are authorized 
     as specified amounts from the Formula Grants account.
       Section 5338(c), Major Capital Investment Grants, 
     authorizes appropriations from the General Fund in Fiscal 
     Years 2006 through 2009 to carry out New Starts, including 
     Small Starts, under Section 5309.
       Section 5338(d), Research and University Research Centers, 
     authorizes appropriations for the Research Programs, 
     including University Transportation Centers. Specific amounts 
     are provided for the Transit Cooperative Research Program, as 
     well as Project Action and the new Center for Senior 
     Transportation.
       Section 5338(e), Administration, authorizes appropriations 
     for administrative expenses.
       Amounts available under Subsections (a), (b), (c), and (d) 
     remain available until expended. Grants financed from amounts 
     derived from the Mass Transit Account under subsections (a) 
     or (b) or through advance appropriations under those 
     subsections as well as subsections (c), (d), or (e) would be 
     contract authority.


                SEC. 3037. ALTERNATIVES ANALYSIS GRANTS

     House Bill
       No provision.
     Senate Bill
       No provision.
     Conference Substitute
       Establishes a new program explicitly for grants to States, 
     metropolitan planning organizations, and local governmental 
     authorities to develop alternatives analyses. This 
     eligibility for new fixed guideway capital project planning 
     and alternatives analysis resides under section 5309 in 
     current law. Because the conferees have eliminated this 
     eligibility under the New Starts program, a stand-alone 
     program is established for such activities.


   SEC. 3038. APPORTIONMENTS BASED ON GROWING STATES FORMULA FACTORS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 6037.
       A new Section 5340 is added to allocate funds to Growing 
     and High Density States. For this section, the term `State' 
     is defined only to mean the 50 States.
       The new Section 5340 allocates funds based on the 
     population forecasts for fifteen years after the date of that 
     census. Forecasts are based on the trend between the most 
     recent decennial census and Census Bureau population 
     estimates for the most current year. Funds allocated to the 
     States are then sub-allocated to urbanized and non-urbanized 
     areas based on forecast population, where available. If 
     forecasted population data at the urbanized level is not 
     available, funds are allocated to current urbanized and non-
     urbanized areas on the basis of current population. Funds 
     allocated to urbanized areas are included in their Section 
     5307 apportionment. Funds allocated for non-urbanized areas 
     are included in the States' Section 5311 apportionments.
       For States with population densities in excess of 370 
     persons per square mile, funds are allocated based on the 
     amount by which their population exceeds the product of their 
     land area and the percentage of total State population in 
     urbanized areas as determined by the most recent Decennial 
     Census.
     Conference Substitute
       The Conference adopts Senate Proposal with a modification 
     to flow high density funds through urbanized areas. These 
     funds will be distributed to urbanized areas in their Section 
     5307 apportionments on the basis of their share of urbanized 
     population. The Conferees expect that FTA will publish single 
     urbanized and rural apportionments that show the total amount 
     for 5307 and 5311 programs that includes both apportionments 
     under 5336 and 5311 formulas together with 5340.


           SEC. 3039. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM

     House Bill
       Sec. 3035.
       This section amends Section 3038 of TEA-21 regarding the 
     over-the-road bus accessibility program, which provides 
     grants to intercity and charter bus providers for incremental 
     costs of equipment to reach compliance with the Americans 
     with Disabilities Act. The TEA-21 provision regarding Federal 
     share is amended by increasing the Federal share for such 
     project costs from 50 percent to 80 percent.
     Senate Bill
       Sec. 6039.
       Continues Over-the-Road Bus Accessibility Program.
     Conference Substitute
       Adopts the House proposal but specifies that the Federal 
     share for grants under this program is 90 percent.


                     SEC. 3040. OBLIGATION CEILING

     House Bill
       Sec. 3045
       This section sets the annual obligation ceiling for Federal 
     Transit Administration programs authorized by this Act for 
     fiscal years 2004-2009, including both amounts made available 
     from the Mass Transit Account of the Highway Trust Fund and 
     general funds from the U.S. Treasury. The total obligation 
     authority for each fiscal year is guaranteed to be provided 
     in the fiscal year for which it is set under the budgetary 
     firewalls established in section VIII of the bill.
     Senate Bill
       Sec. 6041.
       This section establishes the obligation ceiling for each 
     fiscal year, equal to the total amounts authorized.
     Conference Substitute
       Establishes the obligation ceiling for fiscal years 2006 
     through 2009, and sets a ceiling on the amount that can be 
     made available from the Mass Transit Account.


              SEC. 3041. ADJUSTMENTS FOR FISCAL YEAR 2005

     House Bill
       Sec. 3046
       This section provides for the funding reconciliation of 
     apportionments and allocations made to transit grant 
     recipients under this Act with the levels of funding already 
     made available under the Surface Transportation Extension 
     Act.
     Senate Bill
       Sec. 6042.
       This section provides that the amounts for Fiscal Year 2005 
     are in lieu of, and not in addition to, the amounts 
     authorized for the first eight months of Fiscal Year 2005 by 
     the Surface Transportation Extension Act of 2004. In 
     addition, the section provides for an adjustment to the 
     calculations of apportionments for the fixed-guideway 
     modernization program, since that formula assumes a full year 
     of funding.
     Conference Substitute
       The conference report reconciles apportionments and 
     allocations made under this Act with the funding already made 
     available under the Surface Transportation Extension Act. 
     This section also contains an adjustment to the calculation 
     of apportionments for the fixed guideway modernization 
     program.


SEC. 3042. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE AGAINST PUBLIC 
                         TRANSPORTATION SYSTEMS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 6029.
       The term `mass transportation' is changed to `public 
     transportation' throughout Chapter 53 of Title 49, U.S.C. 
     Section 1993 of Title 18 is amended to replace the term `mass 
     transportation' with `public transportation.'
       Section 1993(a)(5) makes it a Federal crime to interfere 
     with anyone `dispatching, operating, or maintaining a mass 
     transportation vehicle or ferry.' The statute does not 
     address those who `control' such vehicles, and arguably 
     excludes rail system `controllers' (central command employees 
     who control the movement of rail cars). Although such 
     controllers `operate' vehicles in some cases, and thus may 
     fall within the statute, the statute does not expressly cover 
     them. The amendment to Section 1993(a)(5) explicitly provides 
     that interference with a rail controller constitutes a 
     Federal crime.
     Conference Substitute
       The Conference adopts the Senate proposal.


   SEC. 3043. PROJECT AUTHORIZATIONS FOR NEW FIXED GUIDEWAY CAPITAL 
                                PROJECTS

     House Bill
       Sec. 3037.
       This section lists the projects that are authorized under 
     the section 5309 new starts and small starts programs for 
     fiscal years 2004-2009. Existing full funding grant 
     agreements are listed separately from projects authorized for 
     final design and construction and those authorized for 
     alternatives analysis and preliminary engineering.
       In subsection 3037(a), 26 new start projects originally 
     authorized in the Intermodal Surface Transportation 
     Efficiency Act (ISTEA) or in TEA-21 have continued 
     authorizations with the amount specified by fiscal year that 
     remains outstanding under the schedule of Federal funds for 
     the project (or ``schedule 6'') attached to each project's 
     full funding grant agreement contract with the FTA. The first 
     responsibility of the Appropriations Committees in providing 
     funds for new fixed guideway capital projects must be to 
     ensure that each project under a full funding grant agreement 
     receives the full amount specified for the fiscal year in 
     which it is programmed. Under-funding full funding grant 
     agreements is very damaging to the financial management of 
     the project and to the overall capital and operating budget 
     of the sponsoring agency, and may jeopardize private 
     financing for the local share of such project costs.
       In subsection 3037(b), new fixed guideway capital projects 
     that are ongoing projects in the new starts pipeline and are 
     currently in preliminary engineering or final design are 
     authorized for final design and construction.
       In subsection 3037(c), new fixed guideway capital projects 
     that have not yet been approved for preliminary engineering 
     by the FTA or that were not previously authorized under TEA-
     21 are authorized for alternatives analysis and preliminary 
     engineering.
       Subsection 3038(d) sets out rules relating to new starts 
     and small starts funding for the life of the authorization. 
     In general, all projects that are authorized under subsection 
     (a) may expend Federal funds only for final design and 
     construction activities.

[[Page H7485]]

     Projects that are authorized under subsection (b) may expend 
     Federal funds for final design and construction, and for 
     alternatives analysis and preliminary engineering activities. 
     Projects that are authorized under subsection (c) may expend 
     Federal funds only on alternatives analysis and preliminary 
     engineering activities. However, on October 1, 2007, projects 
     authorized under subsection (c) shall also be authorized for 
     final design and construction. Minimum funding levels are 
     established for appropriations for each fiscal year in the 
     full funding grant agreement category (subsection a) and the 
     final design and construction category (subsection b), and 
     maximum funding levels are established for each fiscal year 
     in the alternatives analysis and preliminary engineering 
     category (subsection c). Subsection 3037(b) projects 
     authorized for final design and construction that execute a 
     full funding grant agreement with FTA after the date of 
     enactment of this Act are to be given the full amount 
     indicated in the schedule of Federal funds for the project 
     for each fiscal year under the agreement.
       Subsection 3037(e) amends the project description for the 
     New Jersey Urban Core project originally authorized in 
     section 3031(d) of ISTEA. This authorization was expanded in 
     TEA-21 and is further amended in this legislation.
       Subsection 3037(f) directs that project elements of the New 
     Jersey Trans-Hudson Midtown Corridor that have been advanced 
     with 100 percent non-Federal funds shall be given 
     consideration by the FTA when evaluating the local share of 
     the project in the new starts rating process, including the 
     purchase of bi-level rail equipment.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The House proposal is adopted. In subsection (d), the 
     Senate includes authorizations for new fixed guideway 
     projects with funding amounts, subject to the requirements of 
     section 5309(d) and (e) of title 49, U.S.C.
       Bi-County Transitway.--It is the intent of the managers 
     that any alignment of the Bi-County Transitway along the 
     Georgetown Branch right of way should be designed and 
     constructed in a manner to ensure a safe and accessible 
     pedestrian-bicycle trail. The Maryland Transit Administration 
     should consider a range of options to include placing the 
     rail line underground through cut and cover.


SEC. 3044. PROJECTS FOR BUS AND BUS-RELATED FACILITIES AND CLEAN FUELS 
                             GRANT PROGRAM

     House Bill
       Sec. 3038.
       This section lists bus and bus facilities projects and 
     associated funding levels for fiscal years 2006, 2007, and 
     2008. Each year's designated funding represents one half of 
     the authorized amount for section 5309 bus and bus facility 
     projects for that fiscal year.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       This section lists bus and bus facilities projects and 
     associated funding levels for fiscal years 2006, 2007, 2008, 
     and 2009. Both the House and Senate combined amount of 
     funding for each fiscal year represents one half of the 
     authorized amount for section 5309 bus and bus facility 
     projects for that fiscal year.


    SEC. 3045. NATIONAL FUEL CELL BUS TECHNOLOGY DEVELOPMENT PROGRAM

     House Bill
       Sec. 3039.
       This section authorizes a new fuel cell bus technology 
     development program for hydrogen fuel cell and liquid 
     methanol fuel cell bus technologies, in order to facilitate 
     the development of commercially viable fuel cell bus 
     technology and related infrastructure. The program is limited 
     to three recipients, at a Federal share of 50 percent.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       Adopts the House proposal.


  SEC. 3046. ALLOCATIONS FOR NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS

     House Bill
       Sec. 3041.
       This section establishes seven specific research areas 
     within the Federal Transit Administration's national research 
     and technology program, and allocates funding levels in each 
     fiscal year of the authorization period for these research 
     areas. These research focus areas were developed through 
     conferring with the FTA and reflecting priorities established 
     in the agency's Research and Technology Strategic Plan. The 
     programmatic structure and funding floors for each research 
     area will help ensure that adequate funding is provided 
     throughout the authorization period to establish and carry 
     out meaningful programs with depth and continuity.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The conference report does not break out specific research 
     areas within the national research and technology program. 
     Program designations are made for several national research 
     projects and University Transportation Centers.


               SEC. 3047. FORGIVENESS OF GRANT AGREEMENT

     House Bill
       Sec. 3043.
       Forgives certain debts of the Lane County Transit District.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       Forgives certain debts of the Lane County Transit District 
     and the Pee Dee Regional Transit Authority.


                   SEC. 3048. COOPERATIVE PROCUREMENT

     House Bill
       Sec. 3044.
       This section directs the Secretary to review the practice 
     of cooperative procurement of transit rolling stock, such as 
     buses and rail cars. A pilot program is currently underway at 
     the Federal Transit Administration to determine the benefits 
     of encouraging cooperative procurement of major capital 
     equipment. The program consists of three competitively 
     selected grantees, consortiums of grantees, or members of the 
     private sector acting as agents of grantees, who will develop 
     cooperative specifications and conduct joint procurements. 
     For this program, the Federal share was increased from 80 
     percent to 90 percent. The Secretary is also directed to 
     consider information gathered from grantees about cooperative 
     procurement, whether or not related to the pilot program. The 
     Secretary is directed to notify the Committee on 
     Transportation and Infrastructure and the Senate Committee on 
     Banking, Housing, and Urban Affairs of the results of the 
     cooperative procurement review, and make a finding of whether 
     this program has sufficient merit to be formally incorporated 
     in the Federal public transportation program.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       Adopts the House proposal.


        SEC. 3049. TRANSIT PASS TRANSPORTATION FRINGE BENEFITS.

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 6044.
       The Senate bill includes two provisions related to 
     transportation fringe benefits. Section 6004(a) requires the 
     Secretary of Transportation to conduct a study of tax-free 
     transit benefits and ways to promote improved access to and 
     increased usage of such benefits at Federal agencies in the 
     National Capital Region (NCR). Executive Order #13150 
     requires such benefits to be offered at executive agencies in 
     the NCR, and the study is designed to determine how agencies 
     are implementing that requirement and what the impact has 
     been on congestion and pollution in the NCR.
       Section 6004(b) would remove the restriction that prohibits 
     a Federal agency from operating a shuttle service to a 
     transit facility. By improving access to commuting 
     alternatives, Federal agencies will be able to provide a 
     benefit to their employees that will also help to reduce 
     congestion and improve air quality across the nation.
     Conference Substitute
       The conferees replaced the transit benefit study from the 
     Senate bill with language codifying Executive Order #13150 
     and extending it to include the legislative and judicial 
     branches and independent agencies. As a result, all qualified 
     Federal employees in the National Capital Region will receive 
     tax-free transit benefit to cover their commuting costs up to 
     the maximum allowed by law.
       The conferees adopted the Senate provision regarding 
     shuttle service with modifications. The language was 
     clarified to make clear that the decision to provide shuttle 
     service rests with the agency head. In addition, language was 
     added to specify that an employee riding in a shuttle would 
     not be considered to be within the scope of his or her office 
     simply by virtue of the fact that the employee was using the 
     shuttle service. Finally, language was added to make clear 
     that time during which an individual uses the shuttle service 
     should not be considered when calculating the hours of work 
     or employment for that individual for purposes of Title 5 of 
     the U.S. Code, including chapter 55 of that title. However, 
     the conferees do not intend for this language or an 
     employee's use of the shuttle service to be the basis for any 
     disciplinary action.


                        SEC. 3050. COMMUTER RAIL

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 6046.
       The Senate provision is intended to ensure timely 
     completion of Rhode Island's commuter rail projects, which 
     were authorized in TEA-21. Owing to the fact that commuter 
     rail in Rhode Island is carried on Amtrak owned track, 
     progress on completion of 2 new commuter stations requires 
     Amtrak consent. The Senate bill ensures that the Secretary of 
     Transportation has the authority to ensure that the projects 
     authorized under Section 3030(c) (1)(A)(xliv) of the Federal 
     Transit Act of 1998 and section 1214(g) of the Transportation 
     Equity Act for the 21st Century (16 U.S.C. 668dd note) are 
     successfully completed.
     Conference Substitute
       The Conference adopts the Senate proposal.

[[Page H7486]]

               SEC. 3051. PARATRANSIT SERVICE IN ILLINOIS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       This provision clarifies the authority of a regional or 
     State agency in the State of Illinois to provide coordinated 
     paratransit services and for the Federal Transit 
     Administration to hold such provider accountable under the 
     requirements of the Americans with Disabilities Act. In May 
     2005, the Illinois General Assembly passed legislation that 
     will consolidate in one agency the paratransit services in 
     the six-county Chicagoland region. Because FTA regulations do 
     not contemplate that regional agencies would directly provide 
     coordinated services in the manner set forth in this new 
     State law, this provision sets forth explicit authority for 
     FTA to audit the services provided by a regional or State 
     agency, make recommendations, and take enforcement action if 
     necessary against that agency.

                     TITLE IV--MOTOR CARRIER SAFETY

              Subtitle A--Commercial Motor Vehicle Safety

       The Motor Carrier Safety Improvement Act of 1999 (MCSIA) 
     (P.L. 106-159) established the Federal Motor Carrier Safety 
     Administration (FMCSA) within the Department of 
     Transportation (DOT) on January 1, 2000. Prior to the 
     enactment of MCSIA, commercial motor vehicle-related crashes 
     resulting in fatalities and injuries had been steadily 
     climbing and it was determined that the creation of a 
     separate modal administration within the DOT would improve 
     truck and bus safety. According to data compiled by the DOT, 
     large trucks \1\ represent about three percent of registered 
     vehicles; however, they account for 7 percent of the vehicle-
     miles traveled on our Nation's highways, and are involved in 
     about 11 percent of all fatal crashes.
---------------------------------------------------------------------------
     \1\ Large truck is defined as a commercial motor vehicle with 
     a gross vehicle weight of 10,001 pounds or more.
---------------------------------------------------------------------------
       FMCSA's primary responsibility is to enforce the Federal 
     motor carrier safety and hazardous materials regulations, 
     including the requirements governing Mexico-domiciled 
     commercial motor vehicles operating in the United States. 
     FMCSA also administers the Commercial Driver's License (CDL) 
     program, oversees the interstate transportation of household 
     goods, and all aspects of hazardous materials transportation 
     via highway. FMCSA has been directed to accomplish these 
     responsibilities through increased enforcement of the safety 
     regulations, expedited completion of rulemaking proceedings, 
     scientific research, and improved commercial driver's 
     licensing programs.
       FMCSA has set a goal of reducing the rate of fatalities in 
     large truck crashes by 39 percent between 1999, the year 
     prior to the agency's creation, and 2008, from a rate of 2.7 
     fatalities per 100 million vehicle miles traveled (VMT) to a 
     rate of 1.65. The commercial motor vehicle fatality rate, 
     factoring in increases in VMT, was reduced to 2.28 in 2002, a 
     reduction of 7 percent from 2001 when the rate was 2.45. The 
     commercial motor vehicle fatality rate reduction in 2002 
     marked the fifth consecutive year the rate had been reduced. 
     While the fatality rate has improved, in 2003, 4,986 people 
     were killed in truck crashes, an increase of 47 deaths over 
     2002, and 122,000 people were injured. In addition, 723 truck 
     drivers were killed in 2003, an increase of nearly 5 percent 
     over the number of 2002 fatalities.


               SEC. 4101. AUTHORIZATION OF APPROPRIATIONS

     House Bill
       Sec. 4101.
       From the day of burro-drawn wagons moving our goods to the 
     current day intermodal, just-in-time delivery system, 
     commercial vehicles have always played an important role in 
     our Nation's economy. This section provides funding from the 
     Highway Trust Fund, other than the Mass Transit Account, for 
     FMCSA to implement safety programs for fiscal years 2005 
     through 2009. Funding for the Motor Carrier Safety Assistance 
     Program is authorized in section 4102 of this title. This 
     bill authorizes FMCSA and its programs to be funded through 
     contract authority. Under the Transportation Equity Act for 
     the 21st Century (TEA-21), the agency's administrative 
     expenses were funded through a deduction of the Federal 
     Highway Administration's (FHWA) administrative expenses. This 
     set-aside of Federal-aid funds is called a ``takedown''. The 
     Motor Carrier Safety Improvement Act of 1999 (MCSIA) (P.L. 
     106-159) amended TEA-21 by increasing the takedown to one-
     third of 1 percent from the FHWA's administrative expenses to 
     administer FMCSA activities. Other than the first year of 
     enactment, the takedown has proven to be ineffective for 
     funding the motor carrier safety program adequately. In 
     addition, the takedown has not been able to respond to 
     additional safety and program needs created with the 
     implementation of the North American Free Trade Agreement, 
     and the security improvements needed in response to the 
     terrorist attacks of September 11, 2001. Therefore, it is 
     appropriate to create new contract authority for FMCSA 
     expenses. In addition to authorizing administrative expenses, 
     this section also authorizes three grant programs for 
     commercial driver's license improvement, border enforcement, 
     and performance and registration system management, as well 
     as an authorization to carry out the commercial vehicle 
     information systems and networks development program.
     Senate Bill
       Sec. 7103.
       This section would authorize the following appropriations 
     from the Highway Trust Fund for FMCSA safety programs 
     (excluding MCSAP) for FYs 2006 through 2009.
       For administrative expenses of the Federal Motor Carrier 
     Safety Administration: FY 2006 $211,400,000; FY 2007 
     $217,500,000; FY 2008 $222,600,000; and FY 2009 $228,500,000.
       Border Enforcement Grants: FY 2006 $33,000,000; FY 2007 
     $34,000,000; FY 2008 $35,000,000; and FY 2009 $36,000,000.
       Performance and registration information system management 
     grants program: $4,000,000 for each FYs 2006 through 2009.
       Commercial driver's license and driver improvement program 
     grants: FY 2006 $23,000,000; FY 2007 $23,000,000; FY 2008 
     $24,000,000; and FY 2009 $25,000,000.
       Commercial vehicle information systems and networks 
     deployment program: $25,000,000 for each FYs 2006 through 
     2009.
     Conference Substitute
       The conference adopts authorizing funds for FMCSA and its 
     grant programs for FYs 2005 through 2009. For Motor Carrier 
     Safety Grants: FY 2005 $188,480,000; FY 2006 $188,000,000; FY 
     2007 $197,000,000; FY 2008 $202,000,000; and FY 2009 
     209,000,000.
       For administrative expenses of the Federal Motor Carrier 
     Safety Administration: FY 2005 $254,849,000; FY 2006 
     $213,000,000; FY 2007 $223,000,000; FY 2008 $228,000,000; and 
     FY 2009 $234,000,000.
       Commercial Driver's License Program Improvement Grants: 
     $25,000,000 for each FYs 2006 through 2009.
       Border Enforcement Grants: $32,000,000 for each FYs 2006 
     through 2009.
       Performance and Registration Information System Management 
     Grants Program: $5,000,000 for each FYs 2006 through 2009.
       Commercial Vehicle Information Systems and Networks 
     Deployment program: $25,000,000 for each FYs 2006 through 
     2009.


SEC. 4102. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS AND FALSE 
                                RECORDS

     House Bill
       Sec. 4108.
       Subsection (a) doubles the penalties for recordkeeping 
     violations under 49 U.S.C. 521(b)(2)(B) up to $1,000 for each 
     day the offense continues, or up to $10,000 for an offense 
     that misrepresents a non-recordkeeping violation. Subsection 
     (b) increases to a maximum of $25,000 the civil penalty for a 
     motor carrier that knowingly orders a driver to proceed 
     despite an OOS order. Subsection (b) also increases a 
     driver's penalty for a first offense to a 180-day 
     disqualification and a civil penalty of at least $2,500, and, 
     for a second offense, to a two- to five-year disqualification 
     and a civil penalty of up to $5,000.
     Senate Bill
       Sec. 7113.
       The civil penalties for recordkeeping violations are $500 
     for each day the offense continues, up to a maximum of 
     $5,000, or $5,000 for each recordkeeping violation that can 
     be shown to have misrepresented a fact constituting a non-
     recordkeeping violation. Subsection (a) would double these 
     penalties to up to $1,000 for each day the offense continues, 
     or up to $10,000 for an offense that misrepresents a non-
     recordkeeping violation. Recordkeeping violations frequently 
     have no other purpose than to conceal a safety violation, and 
     they often succeed. Higher penalties should reduce both the 
     number of recordkeeping violations and, indirectly, the 
     number of safety violations as well. The current penalties 
     for a driver who violates an out-of-service (OOS) order are, 
     for a first offense, a 90-day disqualification from operating 
     a CMV and a civil penalty of at least $1,000 and for a second 
     offense, disqualification for one to five years and a civil 
     penalty of at least $1,000. An employer who knowingly allows 
     or requires a driver to violate an OOS order is subject to a 
     civil penalty of up to $10,000. OOS orders can be issued for 
     a variety of reasons: for failure to pay civil penalties on 
     schedule; for having an unsatisfactory safety rating; for 
     violating the agency's hours-of-service or 
     equipment regulations; or because the motor carrier 
     constitutes an imminent hazard. Enforcement officers 
     cannot afford to spend hours monitoring a single OOS 
     vehicle, and tracking possible movements of an entire OOS 
     fleet is even more difficult. As a result, many OOS orders 
     are violated. One effective deterrent to violating an OOS 
     order is to raise the cost to violators. Subsection (b) 
     would increase to a maximum of $25,000 the civil penalty 
     for a motor carrier that knowingly orders a driver to 
     proceed despite an OOS order. An employer who knowingly 
     and willfully ignores OOS orders is liable to imprisonment 
     for up to a year or a fine of up to $100,000 if the 
     violation did not result in death, or up to $250,000 if it 
     did result in death, or both. The section also would 
     increase penalties for drivers who decide on their own to 
     ignore an OOS order. Subsection (b) would increase a 
     driver's penalty for a first offense to a 180-day 
     disqualification and a civil penalty of at least $2,500, 
     and, for a second offense, to a two to five year 
     disqualification and a civil penalty of up to $5,000.

[[Page H7487]]

     Conference Substitute
       The conference adopts the House approach. The conference 
     also adopts the House approach found in Sec. 4213 of the 
     House bill, which permits imprisonment, under Title 18, if an 
     employer knowingly and willfully allows an employee to 
     operate a CMV out-of-service.


           SEC. 4103. PENALTY FOR DENIAL OF ACCESS TO RECORDS

     House Bill
       Sec. 4106.
       This provision creates the new section, 521(b)(2)(E), which 
     creates a financial penalty to dissuade any uncooperative 
     carriers or shippers from denying or impeding FMCSA's 
     legitimate access to records.
     Senate Bill
       Sec. 7109.
       FMCSA investigators have broad authority to inspect and 
     copy motor carrier and shipper records and most carriers and 
     shippers readily grant access to requested records. Some, 
     however, deliberately impede the investigative process by 
     refusing to set an audit date, or, after setting a date, by 
     ordering investigators off the premises, occasionally with a 
     show of force. Others take a more subtle approach, feigning 
     illness or declaring an emergency during the audit, pleading 
     inability to produce records because of the absence of key 
     personnel, or delivering documents at a pace designed to 
     prolong the audit beyond the time available to the 
     investigator. While investigators can issue an administrative 
     subpoena for documents, refusal to comply requires the agency 
     to file an action in Federal court to enforce the subpoena. 
     This process, though effective, is relatively slow and labor-
     intensive, and the cost to a carrier or shipper who does not 
     seriously contest the action is minimal. This section would 
     create a financial penalty to dissuade uncooperative carriers 
     and shippers from denying or impeding FMCSA's legitimate 
     access to records.
     Conference Substitute
       The conference adopts the Senate approach, with the 
     inclusion of the House penalty amounts.


              SEC. 4104. REVOCATION OF OPERATING AUTHORITY

     House Bill
       No comparable provision in House bill.
     Senate Bill


                               Sec. 7116.

       This section would authorize the Secretary to suspend the 
     registration of a motor carrier, a freight forwarder, or a 
     broker for failing to comply with safety regulations 
     established by the Secretary. In addition, the Secretary 
     would be required to revoke the registration of a motor 
     carrier that has failed to comply with Federal safety fitness 
     requirements. The Secretary also would be required to revoke 
     the registration of a motor carrier whose operations are an 
     imminent hazard to public health or property. In order to 
     suspend or revoke a registration, the Secretary must give 
     prior notice to the registrant.
     Conference Substitute
       The conference adopts the Senate approach.


            SEC. 4105. STATE LAWS RELATING TO VEHICLE TOWING

     House Bill
       Sec. 4136.
       This section permits states to create laws requiring towing 
     companies to have prior written consent by the property or 
     the property owner or lessee be present at the time the 
     vehicle is towed.
     Senate Bill
       Sec. 7129.
       This section permits states to create laws requiring towing 
     companies to have prior written consent by the property or 
     the property owner or lessee be present at the time the 
     vehicle is towed. Also, the Secretary of Transportation must 
     conduct a review of Federal, State, and local regulations 
     relating to tow truck operations and conduct a study to 
     identify issues related to the protection of consumer rights 
     and identify potential remedies.
     Conference Substitute
       The conference adopts the House and Senate provisions to 
     allow states to make laws requiring towing companies to have 
     prior written consent or require the property owner or lessee 
     to be present during a tow. The conference also agreed to 
     require the Secretary of Transportation to study the issues 
     relating to consumer protection of those who are towed and 
     potential remedies.


                 SEC. 4106. MOTOR CARRIER SAFETY GRANTS

     House Bill
       Sec. 4102.
       Subsection (a) of this section reauthorizes MCSAP, with a 
     number of changes. In addition to increases in authorized 
     funding levels, the program would be amended to require the 
     States to include five new requirements in their annual 
     commercial vehicle safety plans: the implementation of 
     performance-based activities, the establishment of a program 
     ensuring accurate, complete, and timely motor carrier safety 
     data is collected, reports, and corrected if incorrect, 
     States including in their training manuals, for all drivers' 
     licensing examinations, information about best practices for 
     safely sharing the road with trucks and cars, enforcing the 
     registration requirements of section 13902, of title 49, 
     United States Code, by removing from service vehicles that 
     are unregistered or operating beyond the scope of their 
     registration, and States conducting highly visible traffic 
     enforcement programs in locations or corridors that have been 
     identified as having a high incidence of truck crashes.
       Subsection (b) of this section details the new activities, 
     such as enforcement of non-commercial motor vehicles when 
     behavior of the drivers increases the risk of crashes, which 
     States can use funds provided under the MCSAP. The Committee 
     intends this new MCSAP authority to be used in direct 
     relation to conducting highly visible roadside enforcement 
     activities in high crash corridors. Subsection (c) of this 
     section authorizes funding for the MCSAP. This funding is for 
     the basic grant program, high priority grants, and the new 
     entrant program. This bill does not continue the incentive 
     program for MCSAP.
       Subsection (d) of this section provides FMCSA the authority 
     to provide grants without a matching requirement to the 
     States to conduct safety audits of new entrant motor 
     carriers. This subsection also increases the current amount 
     of MCSAP funding available for high priority activities to 10 
     percent of the total funds authorized. In addition, this 
     subsection also allows the Secretary to use up to 
     $15,000,000 each fiscal year to conduct safety audits of 
     new entrant motor carriers described in subsection (c).
     Senate Bill
       Sec. 7107.
       This section provides language that ensures that 
     inspections on motor carriers of passengers are conducted at 
     stations, terminals, border crossings, or maintenance 
     facilities, except in the case of an imminent or obvious 
     hazard. It will provide that the training manual for the 
     licensing examination to drive a motor vehicle of the State 
     will include information on best practices for driving safely 
     in the vicinity of motor vehicles. It also provides that the 
     State will suspend the operation of any vehicle found to be 
     operating without registration or beyond the scope of its 
     registration. Under this section there are grants for 
     activities carried out in conjunction with an appropriate 
     inspection of a CMV to enforce Government or State 
     regulations, including regulating commercial motor vehicle 
     size and weight limitations at locations other than fixed 
     weight facilities, at ports, or at other specific locations 
     and for the detection of unlawful presence of controlled 
     substance in a commercial motor vehicle or on any occupant of 
     the vehicle. These grants are also for enforcement of State 
     traffic laws and regulations designed for the safe operation 
     of commercial motor vehicles. The Secretary may allocate new 
     entrant motor carrier audit funds to States and local 
     governments without requiring a matching contribution from 
     such States or local governments. This section authorizes the 
     following amounts from the Highway Trust Fund to carry out 
     section 31102:
        2006 $193,620,000
        2007 $197,490,000
        2008 $201,440,000
        2009 $205,470,000
     Conference Substitute
       The conference adopts the House section (a) State Plan 
     Contents and adds a modified version of the Senate's 
     paragraph (U) regarding the location of bus inspections. The 
     conference adopts the House section (b) Use of Grants to 
     Enforce Other Laws with a modification of paragraph (c)(2). 
     The conference agrees the states may not use more than 5% of 
     the base amount the state receives for non-commercial motor 
     vehicle enforcement. The state must maintain its level of 
     inspection effort equal to the average amount from FY 2003, 
     2004, and 2005.
       The Conference supports the use of new technologies, such 
     as the Hazmat Trucking Enforcer, that enable inspectors to 
     conduct inspections in a more effective manner. The Committee 
     notes that States must be in substantial compliance with a 
     number of requirements under 49 U.S.C. 31102 as a condition 
     of receiving MCSAP funding, including requirements to deploy 
     technology to enhance the efficiency and effectiveness of 
     commercial motor vehicle safety programs under 49 U.S.C 
     31102(b)(1)(A), as amended.


      SEC. 4107. HIGH PRIORITY ACTIVITIES AND NEW ENTRANTS AUDITS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7107.
       As under current law, up to $15,000,000 for each FY 2006 
     through 2009 of MCSAP grant funds could be set aside for high 
     priority activities that improve commercial motor vehicle 
     safety and are national in scope. The section would require 
     that at least 80 percent of funds set aside for high priority 
     projects be awarded to State and local agencies. Although DOT 
     has broad discretion to determine the details of the program, 
     the Secretary would be required, at a minimum, to focus on 
     reductions in the number and rate of fatal accidents 
     involving CMVs. The Secretary is also required to designate 
     up to $29,000,000 for audits of new entrant motor carriers 
     and can withhold these funds from a State or local government 
     that is unable to use government employees to conduct these 
     audits. Should they be unable to do so, the Secretary would 
     be authorized, but not be required, to expend the funds 
     directly to carry out new entrant audits in those 
     jurisdictions. The Secretary may also designate

[[Page H7488]]

     $2,000,000 in FY 2006 and up to $6,000,000 for FY 2007 
     through 2009 for the modernization of the commercial driver's 
     license information system. This section also would clarify 
     that funds provided for border enforcement grants are to go 
     to States that share a border with another country. Grant 
     recipients could not use Federal funds to replace State 
     funds. As a condition of receiving a border enforcement 
     grant, States would be required to maintain their own 
     expenditures at a level at least equal to the average level 
     of expenditure by the State for the two years before October 
     1, 2005.
     Conference Substitute
       The Conference adopts the Senate approach.


                  SEC. 4108. DATA QUALITY IMPROVEMENT

     House Bill
       Sec. 4115.
       This section adds language to the current information 
     systems requirements to ensure that the data FMCSA receives 
     from the States is complete, timely, and accurate.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       This section aims to ensure the safety data FMCSA receives 
     from States is complete, timely, and accurate. This section 
     was initiated because the Conferees' concern regarding the 
     quality of the safety data in the motor carrier safety status 
     measurement system (SafeStat) and the unresolved material 
     weaknesses in the SafeStat data, as confirmed in a 2004 
     report of the Department's Inspector General. In addition, 
     the Conferees are concerned that data quality issues 
     affecting the MCMIS database may constrain its usefulness for 
     certain purposes beyond general internal review and 
     screening. The Conferees urge the Secretary to revisit this 
     issue to determine if there are more accurate factors that 
     could be utilized when determining whether to issue safety 
     permits.


                SEC. 4109. PERFORMANCE AND REGISTRATION

                     INFORMATION SYSTEM MANAGEMENT

     House Bill
       Sec. 4114.
       Subsection (a) updates the current statute to more closely 
     follow how the performance and registration information 
     systems management (PRISM) program is currently administered. 
     Subsection (b) establishes a new separate grant program for 
     PRISM. These grants do not require a State match.
     Senate Bill
       Sec. 7120.
       The Performance and Registration Information System 
     Management Program (PRISM) is a voluntary program in which 
     States can participate to identify motor carriers and hold 
     them responsible for the safety of their operations. The 
     program includes two major processes: a commercial vehicle 
     registration process, through which States ensure that no 
     vehicle is plated without identifying the carrier responsible 
     for the vehicle's safety during the registration year, and a 
     motor carrier safety improvement process, designed to improve 
     the safety performance of motor carriers with demonstrated 
     poor safety performance. As of March 2004, 27 States 
     participated in the PRISM program, also the States of Alaska 
     and New York have also provided the FMCSA with a Letter of 
     Intent to implement the PRISM program. PRISM is an effective 
     enforcement tool that enables the States to deny, suspend, or 
     revoke a motor carrier's commercial motor vehicle 
     registrations when FMCSA determines that the carrier has 
     become unfit to operate CMVs safely. By itself, an out-of-
     service (OOS) order from FMCSA sometimes has little 
     effect. However, when the State simultaneously confiscates 
     the motor carrier's CMV license plates, the carrier's 
     ability to continue operating without detection is greatly 
     reduced. Grants to implement PRISM are authorized by 
     section 103 of the bill. This section would establish in 
     statute certain requirements for participation in the 
     program. In order to participate, States would have to 
     comply with uniform standards set by the Secretary and 
     have the legal authority to impose CMV registration 
     sanctions on the basis of a Federal safety fitness 
     determination. Another condition for participation in the 
     program would be that States cancel the motor vehicle 
     registration, and seize the plates, of an employer who 
     knowingly allows an employee to operate a CMV in violation 
     of an OOS order.
     Conference Substitute
       The conference adopts both the House and Senate approach. 
     The conference combined and clarified both the House and 
     Senate language in the Conditions for Participation section.


                  SEC. 4110. BORDER ENFORCEMENT GRANTS

     House Bill
       Sec. 4103.
       Subsection (a) deletes contract authority funding for 
     information systems by striking the section 31107 of title 
     49, U.S.C., where it currently is located. Funding for 
     information systems is now included in the administrative 
     expenses. Subsection (a) also creates a new grant program for 
     border enforcement activities under the same section.
       This grant program is for State enforcement activities at 
     the Canadian and Mexican borders. No Federal activity would 
     be conducted using this money. States would be authorized to 
     use the grants for virtually anything related to Commercial 
     Motor Vehicles (CMV) safety enforcement and compliance with 
     State and Federal CMV requirements involving foreign motor 
     carriers, including the purchase of land and buildings. Grant 
     recipients could not use Federal funds to replace State funds 
     and they would be required to maintain the average level of 
     border-related expenditures during fiscal years 2003-2004. It 
     is intended, and quite possible, that this money will not be 
     distributed to every State that shares a border with another 
     Country, but will only be distributed to States with an 
     identified need. These grants do not require a State match.
     Senate Bill
       Sec. 7107(b).
       This section also would clarify that funds provided for 
     border enforcement grants are to go to States that share a 
     border with another country. Grant recipients could not use 
     Federal funds to replace State funds. As a condition of 
     receiving a border enforcement grant, States would be 
     required to maintain their own expenditures at a level at 
     least equal to the average level of expenditure by the State 
     for the two years before October 1, 2005.
     Conference Substitute
       The conference adopts the House approach, and the Senate 
     approach regarding Noncompliance with CDL Requirements.


        SEC. 4111. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM

     House Bill
       Sec. 4112.
       This section authorizes a comprehensive FMCSA research and 
     technology program under section 31108 of title 49, U.S.C. 
     The Federal share of the cost of activities carried out under 
     a cooperative research and development agreement could not 
     exceed 50 percent, except if there is substantial public 
     interest or benefit, the Secretary could approve a greater 
     Federal share.
     Senate Bill
       Sec. 7118.
       This section would establish a motor carrier research and 
     technology program. The goal is to support, through 
     contracts, cooperative agreements, and grants, research 
     designed to produce innovative advances in motor carrier, 
     driver, and passenger safety. Equally critical, however, 
     would be the transfer of promising results, whether technical 
     or operational, to potential users and rapid deployment of 
     the fruits of research and development. The Federal share of 
     the cost of activities carried out under a cooperative 
     research and development agreement will not exceed 50 
     percent, except when there is substantial public interest or 
     benefit, as determined by the Secretary. Research, 
     development, or use of a technology under a cooperative 
     research and development agreement, including the terms under 
     which the technology may be licensed and the resulting 
     royalties may be distributed, would be subject to the 
     Stevenson-Wydler Technology Innovation Act of 1980.
     Conference Substitute
       The conference adopts the House approach with clarification 
     of language in the Research, Development, and Technology 
     Transfer Activities section.


         SEC. 4112. NEBRASKA CUSTOM HARVESTERS LENGTH EXEMPTION

     House Bill
       Sec. 4138.
       This section allows the State of Nebraska to permit the 
     length of commercial motor vehicles used exclusively for 
     hauling custom harvesters to 81 feet, 6 inches.
     Senate Bill
       No comparable provision in Senate bill.
     Conference
       The conference adopts the House approach.


  SEC. 4113. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER MANAGEMENT

     House Bill
       Sec. 4111.
       Some motor carrier managers and brokers order, encourage, 
     or tolerate widespread regulatory violations and, when 
     caught, declare bankruptcy, rename the company and reshuffle 
     the managers' titles, sell its assets to a pre-existing shell 
     corporation owned and managed by the same people, or 
     otherwise attempt to evade the payment of civil penalties, 
     obscure the identity of the company and thus its violation 
     record, and perpetuate a casual indifference to regulatory 
     compliance and public safety. Although the total number of 
     such managers and brokers are small, their actions create 
     risks disproportionate to their numbers.
       This section addresses these problems. It amends 49 U.S.C. 
     31135 to authorize the Secretary to suspend, amend, or revoke 
     the registration of a for-hire motor carrier if any of its 
     officers has engaged in a pattern or practice of avoiding 
     compliance, or concealing non-compliance, with Federal 
     standards. The Secretary could also deny an application to 
     register as a for-hire motor carrier if any of the proposed 
     officers of the company has engaged in a pattern of non-
     compliance. In this context, ``officer'' means owner, chief 
     executive officer, chief operating officer, chief financial 
     officer, safety director, vehicle maintenance supervisor, 
     driver supervisor, and any person exercising controlling 
     influence over operations of a motor carrier.
       This provision does not apply to all officers whose 
     companies are found to be in violation

[[Page H7489]]

     of the Federal safety rules. Rather, it is intended to 
     authorize the Secretary to force out of the industry those 
     few who have shown unusual and repeated disregard for 
     compliance.
     Senate Bill
       Sec. 7117.
       Some motor carrier managers order, encourage, or tolerate 
     widespread regulatory violations and, when caught, declare 
     bankruptcy, rename the motor carrier, and reshuffle the 
     managers' titles, sell its assets to a pre-existing shell 
     corporation owned and managed by the same people, or 
     otherwise attempt to evade the payment of civil penalties, 
     obscure the identity of the motor carrier and thus its safety 
     record. Although the total number of such managers is small, 
     their actions create a risk disproportionate to their 
     numbers. The section would address these problems by 
     authorizing the Secretary to suspend, amend, or revoke the 
     registration of a for hire motor carrier if any of its 
     officers has engaged in a pattern or practice of avoiding 
     compliance, or concealing non-compliance, with Federal motor 
     carrier safety standards. In this context, ``officer'' means 
     owner, director, chief executive officer, chief operating 
     officer, chief financial officer, safety director, vehicle 
     maintenance supervisor, and driver supervisor of a motor 
     carrier. This provision would not apply to all motor carrier 
     officers whose companies are found to be in violation of the 
     Federal safety rules. Rather, it is intended to authorize the 
     Secretary to force out of the industry those few motor 
     carrier officers who have shown unusual and repeated 
     disregard for safety compliance. It is expected that the 
     Secretary would use this authority only in the most serious 
     cases.
     Conference Substitute
       The conference adopts the House provisions without the 
     Regulations and Cross Reference paragraphs.


     SEC. 4114. INTRASTATE OPERATIONS OF INTERSTATE MOTOR CARRIERS

     House Bill
       Sec. 4110.
       In order to simplify and rationalize the analysis of 
     accident data and provide a complete picture of the safety of 
     motor carrier operations, subsection (a) requires the 
     Secretary, in the course of determining the safety fitness of 
     commercial motor vehicle (i.e., interstate) owners and 
     operators, to consider the accident and inspection record of 
     such owners and operators both on interstate and intrastate 
     trips. In addition, owners and operators of commercial motor 
     vehicles who are determined to be unfit and prohibited from 
     operating in interstate commerce, are also prohibited by 
     subsection (b) from operating commercial motor vehicles in 
     intrastate commerce until they are able to demonstrate their 
     fitness. Subsection (c) directs the Secretary to place all 
     interstate operations of a motor carrier out of service if a 
     State has placed out of service the intrastate operations of 
     a carrier that has its principal place of business in that 
     State.
       This subsection also provides the Secretary the authority 
     to make grants to the States to conduct new entrant safety 
     audits. This funding requires no State match; however, if the 
     Secretary determines that a State is unable to use government 
     employees to conduct these activities, the Secretary may 
     utilize the funding to conduct new entrant audits with 
     Federal resources.
       Sec. 4133.
       This provision permits DOT to determine whether a motor 
     carrier or operator is fit to operate a commercial motor 
     vehicle by considering their safety record while operating in 
     interstate, intrastate, and Canadian and Mexican commerce.
     Senate Bill
       Sec. 7114.
       As defined in 49 U.S.C. 31132(1), a vehicle is not a CMV 
     unless it operates in interstate commerce. One of the 
     implications of the definition is that the Secretary's 
     authority to determine the safety fitness of CMV owners and 
     operators encompasses the accident and safety inspection 
     record of such companies or individuals on interstate trips, 
     but not on intrastate trips. Most interstate motor carriers 
     also have substantial intrastate operations. For safety 
     purposes, it is artificial and counterproductive to create 
     two classes of accidents and safety inspection data (one 
     subject to Federal jurisdiction, the other not) when both 
     classes typically involve the same vehicles, drivers, 
     dispatchers, mechanics, and safety management controls, and 
     may be involved in the same kind of accidents or violations. 
     In examining a motor carrier's accident and inspection data, 
     it is often difficult, and sometimes impossible, to determine 
     whether the vehicle involved was making an interstate or 
     intrastate trip. This has produced significant variation and 
     potential for inaccuracy in the accident rates and Motor 
     Carrier Safety Status Measurement System scores calculated 
     for motor carriers, and thus in DOT's ability to hold all 
     carriers to the same standard. In order to simplify and 
     rationalize the analysis of accident data and provide a more 
     complete picture of the safety of motor carrier operations, 
     subsection (a) would require the Secretary, in the course of 
     determining the safety fitness of CMV owners and operators, 
     to consider the accident and inspection record of such owners 
     and operators both on interstate and intrastate trips. In 
     addition, owners and operators of CMVs who are determined to 
     be unfit and prohibited from operating in interstate 
     commerce, also would be prohibited from operating CMVs in 
     intrastate commerce until they are able to demonstrate their 
     fitness. There is no good reason to allow an unfit interstate 
     carrier to narrow its operations to a single State, and thus 
     visit its safety deficiencies upon the residents of that 
     State alone. Finally, the Secretary would be directed to 
     place all interstate operations of a motor carrier out of 
     service if a State has placed out of service the intrastate 
     operations of a carrier that has its principal place of 
     business in that State. A Federal safety determination that 
     an interstate motor carrier is unfit would thus halt both its 
     interstate and intrastate operations, while a State safety 
     determination that an intrastate carrier is unfit will halt 
     both its intrastate and any interstate operations.
     Conference Substitute
       The conference adopts the Senate General section and the 
     House Prohibited Transportation and Determination of 
     Unfitness by a State section.


                     SEC. 4115. TRANSFER PROVISION

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7108.
       This section codified certain motor carrier regulation 
     provisions in Title 49, United States Code.
     Conference Substitute
       The Conference adopts the Senate position with 
     modification. The Conference agreed to transfer this 
     provision to a section of the Motor Carrier Safety 
     Improvement Act of 1999.


                       SEC. 4116. MEDICAL PROGRAM

     House Bill
       Sec. 4107.
       This section requires FMCSA to establish a Medical Review 
     Board to serve as a source of up-to-date medical advice for 
     FMCSA on matters related to driver qualification rules, 
     guidelines for medical examiners, and standards for medical 
     exemptions under 49 U.S.C. 31315(b). This section also 
     includes a provision to establish a five-member Medical 
     Review Board to make recommendations on medical standards for 
     commercial drivers, medical examiner education, and medical 
     research.
     Senate Bill
       Sec. 7110.
       Section 110 would create a five-member Medical Review Board 
     to provide FMCSA medical advice and recommendations on driver 
     qualification medical standards and guidelines, medical 
     examiner education, and medical research. The Secretary, with 
     the advice of the Medical Review Board, would be required to 
     develop medical standards for CMV drivers, requirements for 
     periodic physical examinations, requirements for current 
     valid medical certificates, courses for medical examiners, 
     requirements for electronic transmittal of applicant and 
     numerical identifier for any completed medical examination 
     report, and to periodically review a representative sample of 
     the medical examinations reports. Every CMV driver would be 
     required to have a current valid medical certificate. A 
     national registry of medical examiners would be established 
     and only physicians listed on the registry could perform CMV 
     driver physical exams and issue medical certificates.
     Conference Substitute
       The Conference adopts the Senate provisions with 
     modifications. The Conference adopts the Senate provision 
     establishing the Medical Review Board and the Chief Medical 
     Officer with technical modifications. The Conference adopts 
     the Senate provision on medical standards and requirements, 
     but modifies the provision to require, at a minimum, self-
     certification by medical examiners to ensure they have 
     completed required training in the physical and medical 
     examination standards set by the Secretary of Transportation. 
     The Conference does not adopt the Senate provision requiring 
     the Secretary to issue medical certificates until such 
     authority has been delegated to qualified medical examiners. 
     The Conference adopts the Senate provisions creating the 
     National Registry of Medical Examiners with a modification 
     allowing the Secretary to make participation in the Registry 
     voluntary if such a change will enhance the safety of 
     operators of commercial motor vehicles. The Conference adopts 
     the definition of ``medical examiner''.


            SEC. 4117. SAFETY PERFORMANCE HISTORY SCREENING

     House Bill
       Sec. 4127.
       In order to improve motor carrier safety, this provision 
     requires the Secretary to provide companies conducting pre-
     employment screening services for motor carrier employers, 
     electronic access to commercial motor vehicle accident 
     reports involving a driver-applicant that are collected and 
     maintained by FMCSA in its Motor Carrier Management 
     Information System (MCMIS). The accidents reported to FMCSA 
     must meet the accident definition found in 49 CFR 390.5.
       This provision also requires the Secretary to provide 
     electronic access to roadside safety inspection reports 
     involving a driver-applicant that resulted in a serious 
     driver-related safety violation. This electronic access

[[Page H7490]]

     may be accomplished only after the prospective employer 
     obtains written consent of the driver applicant. This safety 
     compliance and performance information is unique to MCMIS 
     and, therefore, is not found on any other national database. 
     Prohibiting the release of this driver safety information 
     unless expressly authorized or required by law protects 
     driver privacy. The Secretary may require a fee from 
     companies conducting pre-employment screening services to 
     cover necessary administrative costs to implement this 
     screening service.
     Senate Bill
       Sec. 7124.
       This section requires the Secretary of Transportation to 
     provide electronic access of commercial motor vehicle 
     accident report information and all driver safety violations 
     contained in the Motor Carrier Management Information System 
     to companies conducting pre-employment screening services for 
     the motor carrier industry. The information released to these 
     companies will require the written consent of the driver 
     applicant, be in accordance with all Federal laws, and will 
     ensure the information is only made available to an 
     authorized company or individual. The use of this pre-
     screening process is not mandatory and may be used only 
     during the pre-employment assessment of a driver-applicant.
     Conference Substitute
       The conference adopts the House approach.


                         SEC. 4118. ROADABILITY

     House Bill
       Sec. 4128.
       This section directs the Secretary to initiate a rule-
     making to ensure that equipment used to transport intermodal 
     chassis are safe. The rulemaking must be completed no later 
     than 1 year after enactment of this bill and must address a 
     way to identify the equipment owner, a civil penalty 
     structure, a petition process, and an inspection system.
     Senate Bill
       Sec. 7127.
       This Senate provision would require the Secretary, not 
     later than 1 year after enactment, to issue regulations 
     establishing a program to ensure that intermodal equipment 
     used to transport intermodal containers is safe and 
     systematically maintained. The provision places the 
     maintenance responsibility on the companies that provide the 
     equipment and control the daily disposition of it. The 
     provision would require the Secretary to promulgate certain 
     regulations as a subpart of the regulations of the Federal 
     Motor Carrier Safety Administration, including identifying 
     intermodal equipment providers responsible for the inspection 
     and maintenance of intermodal equipment and a requirement to 
     match intermodal equipment to the equipment provider through 
     a unique identifying number. A rulemaking proceeding for 
     regulations under this section shall be established within 
     120 days after enactment of the Act. Under this section, any 
     intermodal equipment determined under this section that fails 
     to comply with applicable safety regulations may be placed 
     out of service and the Secretary, or an employee of the DOT 
     designated by the Secretary may inspect intermodal equipment 
     and copy related maintenance and repair records. The 
     provision preempts any law, regulation, order or other 
     requirement of a State, political subdivision of the State, 
     or tribal organization and defines several terms.
     Conference Substitute
       The conference adopts the Senate provision with technical 
     modifications.
       The conference supports an inspection system that shall 
     maximize the use of available technologies, including 
     electronically verified visual inspections, whenever 
     appropriate.


                  SEC. 4119. INTERNATIONAL COOPERATION

     House Bill
       Sec. 4113.
       This section authorizes the Secretary, and thus FMCSA, to 
     engage in international activities. This kind of authority is 
     necessary to aid in implementing the North American Free 
     Trade Agreement and to carry on discussions with U.S. trading 
     partners concerning a variety of safety issues.
     Senate Bill
       Sec. 7119.
       This section would authorize the Secretary to participate 
     in international activities to enhance motor carrier safety. 
     FMCSA needs this authority to aid in implementing the North 
     American Free Trade Agreement (NAFTA) and to carry on 
     discussions with U.S. trading partners concerning a variety 
     of safety issues.
     Conference Substitute
       The conference adopts the House approach, which has the 
     same intent as the Senate language.


     SEC. 4120. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR CARRIERS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7112.
       The section would extend to private motor carriers the 
     existing requirement for for-hire motor carriers to maintain 
     minimum levels of financial responsibility to cover public 
     liability and property damage for the transportation of 
     passengers or goods. The Secretary may require private 
     carriers to file the same evidence of financial 
     responsibility that is required of for-hire carriers.
     Conference Substitute
       The conference agrees to include not-for-hire motor 
     carriers and passenger carriers in the requirement for 
     minimum financial responsibility.


 SEC. 4121. DEPOSIT OF CERTAIN CIVIL PENALTIES INTO HIGHWAY TRUST FUND

     House Bill
       Sec. 4119.
       This section amends current law to deposit all civil 
     penalties collected from motor carriers for violations of the 
     Federal insurance requirements into the Highway Trust Fund, 
     other than the Mass Transit Account.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The conference adopts the House approach.


                SEC. 4122. CDL LEARNER'S PERMIT PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7152.
       Pursuant to recommendations made by the DOT Inspector 
     General, this section would require that individuals pass a 
     written test to obtain a CMV license learner's permit. 
     Learner's permits would be incorporated into the CDLIS 
     database.
     Conference Substitute
       The conference adopts the Senate approach.


SEC. 4123. COMMERCIAL DRIVER'S LICENSE INFORMATION SYSTEM MODERNIZATION

     House Bill
       Sec. 4125.
       This section creates a grant program to be used to 
     modernize the commercial driver's license information system 
     (CDLIS). Since the creation of CDLIS, improvements to the 
     database and operability of the system have not kept up with 
     improvements in technology. This program helps to modernize 
     the system and improve the State licensing and Federal 
     enforcement personnel's ability to access necessary 
     information.
       This section also allows the Secretary to conduct a pilot 
     project in 3 States to evaluate a program for sharing 
     information about all drivers' licenses, both commercial and 
     non-commercial, between States.
     Senate Bill
       Sec. 7154.
       This section would require the Secretary of Transportation 
     to establish an account to be known as the ``Information 
     System Modernization Account'' (ISMA). Fees in excess of the 
     costs of operating the information system collected for any 
     fiscal year beginning after FY 2006 by the Secretary of 
     Transportation, or an organization that represents the 
     interests of the States would be credited to the ISMA. These 
     funds would be available only for the purpose of modernizing 
     the information system. This section would also require the 
     Secretary to establish a comprehensive plan for modernization 
     of the information system and set a date by which each State 
     must convert to the new information system. Also, within one 
     year of enactment of this Act, the Inspector General of the 
     Department of Transportation shall perform a baseline audit 
     of the information system that includes an assessment of the 
     validity of the data in the information system, an assessment 
     of the extent to which convictions are validly posted on a 
     driver's record, recommendations to the Secretary of 
     Transportation on how to update the baseline audit annually 
     to ensure that any shortcomings in the information system are 
     addressed, and a methodology for conducting the update, and 
     any recommendations the Inspector General feels necessary to 
     improve the integrity of the data collected.
     Conference Substitute
       The conference adopts the House approach and includes 
     additional Senate criteria for the modernization plan. The 
     plan requires states to fund future efforts to modernize the 
     commercial driver's information system. The pilot program is 
     not included in the conference agreement. The Senate's 
     Baseline Audit provision is adopted.


          SEC. 4124. COMMERCIAL DRIVER'S LICENSE IMPROVEMENTS

     House Bill
       Sec. 4104.
       Subsection (a) creates a new program for commercial 
     driver's license improvement grants. These grants enable 
     States to improve the implementation of their commercial 
     driver's license programs. Unlike the border grants, these 
     funds may not be used to purchase land or buildings. In order 
     to apply for a grant, a State must first conduct a self-
     assessment and identify deficiencies in their commercial 
     driver's license program. Based on these assessments, the 
     State will then apply for the appropriate amount of funding 
     to correct these issues. The State must also maintain an 
     average level of commercial driver's license expenditures 
     during the fiscal years 2003-2004. The government share for 
     these grants is 80 percent. Five percent of these funds will 
     be set aside for high priority commercial driver's license 
     activities.
       Subsection (c) authorizes the Secretary to redirect up to 5 
     or 10 percent of the funds a State receives under this 
     program, if the State is found to be in serious non-
     compliance with the commercial driver's license

[[Page H7491]]

     program. The penalty provisions found in the CDL statutes 
     have been amended to encourage the Secretary, through more 
     flexibility, to assess penalties for non-compliance.
     Senate Bill
       Sec. 7153.
       This section would allow the Secretary to make a grant to a 
     State to improve the implementation of the commercial 
     driver's license program, providing that the State is making 
     a good faith effort toward substantial compliance with the 
     requirements made in this bill. The State may use this grant 
     for expenses related to its commercial driver's license 
     program, but the grant may not be used to rent, lease, or buy 
     land or buildings.
       The Secretary would reimburse a State for no more than 80 
     percent of the cost of the improvements and each State would 
     be required to maintain its previous level of CDL 
     expenditures. The Secretary could designate up to 10 percent 
     of the funds available under this subsection for high-
     priority grants. The Secretary could also designate up to 10 
     percent of the CDL grant funds for discretionary allocations 
     to State agencies, local governments, or other persons to 
     deal with emerging problems. Up to 0.75 percent of the funds 
     available for CDL grants could be deducted for administrative 
     expenses.
     Conference Substitute
       The Conference adopts the House approach.


                          SEC. 4125. HOBBS ACT

     House Bill
       Sec. 4105.
       Subsection (a) amends the Hobbs Act to make explicit the 
     interpretation given to that act by a series of decisions of 
     the U.S. Circuit Courts of Appeals. The Courts reviewed 
     whether an action by FMCSA pursuant to the safety authority 
     transferred in 1966 could still be reviewed by the Courts of 
     Appeal, since section 2342(3)(A) applied to the commercial 
     statutes, while section 2342(5) applied to actions of the 
     STB. Subsection (a) ensures that both of these issues would 
     be covered by inserting in section 2342(3)(A) a reference to 
     ``subchapter III of chapter 311, chapter 313, and chapter 315 
     of Part B of subtitle VI of title 49.'' FMCSA's safety 
     statutes are codified there, including statutes enacted after 
     1966. All safety statutes would thus be subject to exclusive 
     review by the Courts of Appeal.
       Subsections (b) and (c) simply replace the term ``Federal 
     Highway Administration'' with ``Federal Motor Carrier Safety 
     Administration'' in 49 U.S.C. 351(a) and 352.
     Senate Bill
       Sec. 7108.
       Subsection (a) would amend the Hobbs Act to make clear that 
     all safety statutes are subject to exclusive review by the 
     U.S. Courts of Appeal.
     Conference Substitute
       The conference adopts both the House and Senate provision 
     which clarify safety statutes and Court of Appeals 
     jurisdiction.


    SEC. 4126. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS 
                               DEPLOYMENT

     House Bill
       Sec. 4109.
       This section transfers the commercial vehicle information 
     system and networks deployment program from FHWA to FMCSA in 
     order to streamline the grant process. This streamlined 
     process is intended to ensure the completion of the core 
     deployment of commercial vehicle information systems and 
     networks. Subsection (a) provides general direction to carry 
     out the commercial vehicle information systems and networks 
     deployment program. Subsection (b) describes the overall 
     purpose of the commercial vehicle information systems and 
     networks deployment program.
       Subsection (c) requires the Secretary to make grants of up 
     to $2.5 million for the core deployment of commercial vehicle 
     information systems and networks. A State that has previously 
     received funding for the core deployment of commercial 
     vehicle information systems and networks would receive a 
     grant that has been reduced by the amount of funds previously 
     received for core deployment. States that have not previously 
     received funding for core deployment would receive a grant of 
     $2.5 million.
       Subsection (d) authorizes the Secretary to make grants to 
     States for the expanded deployment of commercial vehicle 
     information systems and networks. The amount of the grants is 
     determined by the amount of funds that remain after the core 
     deployment grants have been made and by the number of States 
     that request an expanded deployment grant. The maximum 
     expanded deployment grant that may be given to a State in a 
     fiscal year would be $1 million. Only States that have 
     completed core deployment would be eligible for an expanded 
     deployment grant. Subsection (e) describes the eligibility 
     requirements to receive these grants.
       Subsection (f) provides that the Federal share of grant 
     funds under this section is 50 percent. The Federal share for 
     funds used for commercial vehicle information systems and 
     networks from all eligible sources would be 80 percent.
     Senate Bill
       Sec. 7121.
       This section would provide State grants to complete core 
     deployment of the CVISN. The purpose of this program is to 
     provide technological advances in commercial vehicle 
     operations. ``Core deployment means the deployment of systems 
     necessary to provide safety information exchange to 
     electronically collect and transmit commercial vehicle and 
     driver inspection data at a majority of inspection sites; to 
     connect to the Safety and Fitness Electronic Records (SAFER) 
     system for access to interstate carrier and commercial 
     vehicle data, summaries of past safety performance, and 
     commercial vehicle credentials information; and to exchange 
     carrier data and commercial vehicle safety and credentials 
     information within the State and connect to SAFER for access 
     to interstate carrier and commercial vehicle data.
     Conference Substitute
       The conference adopts the House approach, with the 
     inclusion of the Senate Purpose and Federal Share provision.


                   SEC. 4127. OUTREACH AND EDUCATION

     House Bill
       Sec. 4120.
       This section authorizes the Secretary to conduct an 
     outreach and education program through the FMCSA and NHTSA to 
     promote highway safety. Elements of the program shall include 
     a comprehensive national effort to educate commercial motor 
     vehicle and passenger vehicle drivers about how to share the 
     road safely with each other, as well as an emphasis on 
     traffic enforcement aimed at reducing the most common driving 
     behaviors that cause or contribute to crashes, similar to 
     such programs as ``Click It or Ticket'' and drunk driving 
     awareness campaigns. The Secretary is required to provide an 
     annual report each year demonstrating the programs and 
     activities carried out under this section.
       The Committee has significantly increased the funding for 
     the outreach and education program currently conducted by 
     FMCSA, but with this legislation, the outreach program will 
     be jointly managed by FMCSA and NHTSA. Although the Committee 
     believes a strong enforcement program is important for 
     improving commercial motor vehicle and highway safety, 
     combining enforcement activities with a robust outreach and 
     education program is necessary to maximize the results. Also, 
     consistent with the recommendations in the U.S. General 
     Accounting Office report GAO-03-680, the Committee recommends 
     that the outreach and education activities conducted by FMCSA 
     are directly linked to the program's goal and establish a 
     systematic process for evaluating the effectiveness of the 
     program.
     Senate Bill
       Sec. 7122.
       The section would authorize FMCSA and NHTSA to undertake 
     outreach and education initiatives. The ``Share the Road 
     Safely'' program would be jointly managed by the agencies and 
     a total of $1 million would be authorized for the program for 
     FY 2004.
     Conference Substitute
       The conference adopts the House approach.


               SEC. 4128. SAFETY DATA IMPROVEMENT PROGRAM

     House Bill
       Sec. 4124.
       This section establishes a grant program to the States 
     dedicated to improving the accuracy, timeliness, and 
     completeness of the data provided to the Secretary. Prior to 
     receiving a grant under this section, the State must complete 
     an audit of its safety data system and develop a plan 
     recognizing the needs and goals for improving its safety data 
     system. The Secretary must provide a report every two years 
     on the results of the program carried out under this section.
       The Safety Data Improvement program is intended to address 
     safety data problems identified in the DOT Inspector 
     General's audit of FMSCA's database. FMSCA's limited 
     resources require focusing on the motor carriers who are 
     considered most ``at risk''. In order to do this, the data 
     FMCSA uses for selecting carriers must be accurate, and 
     timely. The Committee is concerned that without additional 
     funding, the States may have trouble improving their data 
     reporting.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House approach.


 SEC. 4129. OPERATION OF COMMERCIAL MOTOR VEHICLES BY INDIVIDUALS WHO 
                 USE INSULIN TO TREAT DIABETES MELLITUS

     House Bill
       Sec. 4121.
       This section requires the Secretary to allow individuals 
     who use insulin to treat their diabetes to operate commercial 
     motor vehicles in interstate commerce without requiring the 
     individual to have experience operating a commercial motor 
     vehicle while using insulin.
       The Committee directs FMCSA to issue a final rule to amend 
     the current exemption program to allow individuals who use 
     insulin to treat their diabetes to operate commercial motor 
     vehicles in interstate commerce that is consistent with the 
     findings of the expert medical panel report issued in July 
     2000. That report concluded that individuals could be 
     qualified to operate a commercial motor vehicle following a 
     one- to two-month period of adjustment to insulin use. This 
     provision is intended to preempt FMSCA's notice of final 
     disposition issued September 3, 2003, which requires an 
     individual to have three years of experience operating a 
     commercial motor vehicle in intrastate commerce while using 
     insulin for treatment of diabetes before the individual could 
     qualify to drive in

[[Page H7492]]

     interstate commerce. According to the American 
     Diabetes Association, approximately 20 States do not have 
     an intrastate exemption program for insulin-dependant 
     commercial drivers, therefore, these drivers would never 
     be able to meet the Federal requirement to drive in 
     interstate commerce. The Committee is concerned that by 
     issuing a notice of final disposition that is inconsistent 
     with the finding of FMCSA's own expert medical panel, 
     qualified drivers may not be able to get employed or stay 
     employed.
     Senate Bill
       Sec. 7111.
       This section would require the Secretary to issue a final 
     rule that will allow individuals who use insulin to treat 
     their diabetes to operate CMV in interstate commerce. The 
     final rule may not require that an individual have experience 
     operating a CMV while using insulin. However, the Secretary 
     may require a minimum period of insulin use, consistent with 
     the findings of FMCSA's expert medical panel made in July, 
     2000.
     Conference Substitute
       The Conference adopts the Senate's Revision of Final Rule 
     and No Period of Commercial Driving While Using Insulin 
     Required for Qualification and the House's Minimum Period of 
     Insulin Use and Limitations.


SEC. 4130. OPERATORS OF VEHICLES TRANSPORTING AGRICULTURAL COMMODITIES 
                           AND FARM SUPPLIES

     House Bill
       Sec. 4134.
       This section continues to allow for operators of vehicles 
     transporting agricultural commodities and farm supplies to 
     not be subject to federal, State, and local laws, rules, 
     regulations, or standards that limit the number of hours 
     motor vehicle operators may remain on duty. This applies to 
     operators transporting agricultural commodities during 
     planting and harvest periods within a 100 air mile radius 
     from the location of the distribution point for the farm 
     supply.
     Senate Bill
       Sec. 7128.
       This section would cause the regulations regarding maximum 
     driving and on-duty time for drivers used by motor carriers 
     to not apply during planting and harvesting periods, as 
     determined by the States, to drivers transporting 
     agricultural commodities or farm supplies for agricultural 
     purposes in a State, if the transportation is limited to an 
     area within a 100 mile radius from the source of commodities 
     or the distribution site for the farm supplies. This section 
     also provides a definition for the terms ``agricultural 
     commodity'' and ``farm supplies''.
     Conference Substitute
       The conference adopts the House language as the base for 
     this section, but uses the Senate definition of 
     ``Agricultural Commodity.''


SEC. 4131. MAXIMUM HOURS OF SERVICE FOR OPERATORS OF GROUND WATER WELL 
                             DRILLING RIGS

     House Bill
       Sec. 4126.
       For operators of commercial motor vehicles transporting 
     ground water well drilling rigs, this section preserves the 
     24-hour restart provision enacted in the NHS Designation Act 
     and provides that no additional off-duty time (greater than 
     10 hours) shall be required to operate the vehicle.
     Senate Bill
       Sec. 7140.
       The Senate bill contains a similar provision to the House 
     bill.
     Conference Substitute
       The Conference adopts the House position modified to be 
     consistent with section 4115 of the Conference Report.


 SEC. 4132. HOURS OF SERVICE FOR OPERATORS OF UTILITY SERVICE VEHICLES

     House Bill
       Sec. 4131.
       This section provides an exemption for drivers of utility 
     service vehicles from federal, State, and local laws, rules, 
     regulations, or standards that limit the number of hours 
     operators of utility service vehicles may remain on duty.
     Senate Bill
       Sec. 7128.
       The section also clarifies the regulations regarding 
     commercial motor vehicles providing transportation of 
     property or passengers to or from a theatrical or television 
     motion picture production and also for utility service 
     vehicles.
     Conference Substitute
       The conference adopts the House approach.


       SEC. 4133. HOURS OF SERVICE RULES FOR OPERATORS PROVIDING 
                TRANSPORTATION TO MOVIE PRODUCTION SITES

     House Bill
       Sec. 4135.
       This section permits operators of commercial motor vehicles 
     transporting property or passengers to or from a movie or 
     television production site to be regulated by the Hours of 
     Service regulations in effect on April 27, 2003.
     Senate Bill
       Sec. 7128.
       The section also clarifies the regulations regarding 
     commercial motor vehicles providing transportation of 
     property or passengers to or from a theatrical or television 
     motion picture production.
     Conference Substitute
       The conference adopts the identical language found in the 
     House and Senate bills.


    SEC. 4134. GRANT PROGRAM FOR COMMERCIAL MOTOR VEHICLE OPERATORS

     House Bill
       Sec. 4122.
       This section establishes a grant program to train drivers 
     and future drivers of commercial motor vehicles to operate 
     such vehicles in a safe manner.
     Senate Bill
       Sec. 1413.
       This section establishes a grant program to commercial 
     driver training schools for the purpose of providing 
     financial assistance to entry level drivers.
     Conference Substitute
       The conference adopts the House approach.


                       SEC. 4135. CDL TASK FORCE

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7151.
       This section would require the Secretary to convene a task 
     force to study and report on the need for improvements to the 
     CDL program in order to improve safety. The task force would 
     be required to address such issues as State enforcement 
     practices, operational procedures to detect and deter fraud, 
     needed improvements for seamless information-sharing between 
     States, updated technology, and timely notification from 
     judicial bodies of traffic and criminal convictions involving 
     CDL holders. The task force would be required to submit a 
     report to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure within two years following 
     enactment.
     Conference Substitute
       The conference adopts the Senate approach.


                  SEC. 4136. INTERSTATE VAN OPERATIONS

     House Bill
       Sec. 4130.
       This section directs the Secretary to extend the Federal 
     motor carrier safety regulations found in 49 Code of Federal 
     Regulations, Parts 387, 390 through 399 to all operations of 
     commercial motor vehicles designed to transport between nine 
     and fifteen passengers (including the driver), regardless of 
     their operational distance. This section amends the final 
     rule issued by the DOT on August 12, 2003.
       The Committee intends the Secretary to address this 
     situation through the rule- making process. As part of the 
     rulemaking, the Secretary shall amend the final rule 
     addressing commercial motor vehicles transporting nine to 
     fifteen passengers to specifically exempt vanpool operations 
     as defined by section 132(f) of the Internal Revenue Code. 
     The rulemaking also exempts stretch sedan limousines that are 
     designed to seat nine to fifteen passengers. The rule-making 
     does not exempt SUV stretch limousines, or super stretch 
     sedan limousines that are designed to seat sixteen or more 
     passengers (including the driver).
     Senate Bill
       Sec. 7106.
       This section requires the Secretary to require that a 
     safety audit be immediately changed to a compliance review 
     and appropriate actions be taken if there are any safety 
     violations by a new motor carrier entrant. It also ensures 
     that the Secretary enforces Federal motor carrier safety 
     regulations that apply to interstate CMVs designed to 
     transport between 9-15 passengers, regardless of distance 
     traveled.
     Conference Substitute
       The conference adopts the identical House and Senate 
     language applying the Federal Motor Carrier Safety 
     Regulations to interstate van operations. Further, the 
     conference agrees to exempt vanpool operations from this 
     regulation.


                           SEC. 4137. DECALS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7126.
       This section requires that FMCSA abide by the agreement it 
     has with the Commercial Vehicle Safety Alliance (CVSA) to the 
     extent possible in accordance with the law, that CVSA shall 
     not restrict the sale of commercial motor vehicle safety 
     inspection decals to FMCSA. CVSA and FMCSA have a long-
     standing and successful partnership in ensuring the safety of 
     commercial motor vehicles. A recent dispute regarding safety 
     inspection decals between the two entities suggests that 
     processes for resolving disputes should be improved. While 
     the Committee expects FMCSA to live up to its commitments 
     with CVSA, the Committee also believes that inspection decals 
     should not be unilaterally withheld from the Federal agency 
     responsible for ensuring motor carrier safety.
     Conference Substitute
       The conference adopts the Senate approach.

[[Page H7493]]

            SEC. 4138. HIGH RISK CARRIER COMPLIANCE REVIEWS

     House Bill
       No provision in House bill.
     Senate Bill
       Sec. 7104.
       The Senate bill requires the Secretary to ensure that 
     safety compliance reviews of motor carriers are completed for 
     carriers that have demonstrated that they pose the highest 
     safety risk. A single compliance review is required for any 
     motor carrier that is rated as category A or B for two 
     consecutive months.
     Conference Substitute
       The Conference adopts the Senate provision with a 
     modification to clarify that multiple compliance reviews are 
     not required for carriers that are rated as category A or B 
     for more than two consecutive months.


              SEC. 4139. FOREIGN COMMERCIAL MOTOR VEHICLES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7123.
       The Senate bill requires the Administrator of the Federal 
     Motor Carrier Safety Administration to conduct outreach and 
     training to state safety enforcement personnel on the 
     enforcement of operating authority requirement for motor 
     carriers. The Senate bill requires a study and a report by 
     the Administrator on the degree to which Canadian and Mexican 
     commercial motor vehicles currently expected to operate in 
     the United States comply with U.S. federal motor vehicle 
     safety standards.
     Conference Substitute
       The Conference adopts the Senate provision.


 SEC. 4140. SCHOOL BUS DRIVER QUALIFICATIONS AND ENDORSEMENT KNOWLEDGE 
                                  TEST

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7155 and Sec. 7606
       The Senate bill requires the Secretary to recognize school 
     bus drivers who pass an approved test as having met a certain 
     requirement. The Senate bill also delays the effective date 
     of a requirement for school bus drivers until September 30, 
     2006.
     Conference Substitute
       The Conference adopts the Senate provision.


                SEC. 4141. DRIVEWAY SADDLEMOUNT VEHICLES

     House Bill
       Sec. 4116.
       This section creates a new national standard for the 
     maximum length of drive-away saddlemount with fullmount 
     vehicle transporter combinations operated on the Interstate 
     Highway System.
     Senate Bill
       No provision.
     Conference Substitute
       The conference adopts the House provision.


    SEC. 4142. REGISTRATION OF MOTOR CARRIERS AND FREIGHT FORWARDERS

     House Bill
       Sec. 4118.
       This section harmonizes the jurisdictional reach of the 
     commercial and the safety statutes by eliminating the 
     requirement for motor carriers to register if they are not 
     subject to the Federal motor carrier safety regulations.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The conference adopts the House version.


         SEC. 4143. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Section 7115.
       The section would authorize FMCSA officials to order trucks 
     on the road to stop for inspection. Today, State MCSAP 
     officers, but not FMCSA officials, have such authority. With 
     the opening of the Mexican border, however, Federal 
     inspectors will play an expanded role in roadside 
     enforcement. In addition, there is no guarantee that State or 
     local police officers will always be available at border 
     facilities or at other vehicle inspection facilities 
     throughout the nation to order trucks to stop for an FMCSA 
     inspection.
     Conference Substitute
       The Conference adopts the Senate provision.


           SEC. 4144. MOTOR CARRIER SAFETY ADVISORY COMMITTEE

     House Bill
       Sec. 4123.
       This section requires the establishment of a commercial 
     motor vehicle safety advisory committee to provide advice and 
     recommendations on a range of commercial motor vehicle safety 
     issues. Members are appointed by the Secretary and include 
     representatives of industry, drivers, safety advocates, 
     manufacturers, safety enforcement officials, representatives 
     of law enforcement agencies from border States, and other 
     individuals affected by rulemakings. No one interest may 
     constitute a majority. The advisory committee should provide 
     advice to the Secretary on commercial motor vehicle safety 
     regulations and other matters relating to activities and 
     functions of FMCSA.
     Senate Bill
       No provision.
     Conference Substitute
       The conference adopts the House version with modifications.


                    sec. 4145. technical corrections

     House Bill
       Sec. 4132.
       Subsection (a) adds the Administrator as a member of the 
     Intermodal Transportation Advisory Board.
       Subsection (b) changes the reference from ``Regional 
     Director'' to ``Field Administrator'', that position's 
     correct title since the creation of the FMCSA in the Motor 
     Carrier Safety Improvement Act of 1999.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The conference adopts this clarification of the code.


              sec. 4146. exemption during harvest periods

     House Bill
       No provision.
     Senate Bill
       No provision.
     Conference Substitute
       The conference agrees the maximum driving and on-duty time 
     for a driver will not apply in the area west of Interstate 81 
     in New York during the harvest period and within 150-air mile 
     radius from where grapes are picked or distributed.


      sec. 4147. emergency condition requiring immediate response

     House Bill
       No provision.
     Senate Bill
       No provision.
     Conference Substitute
       The conference agrees regulations prescribed under 31136 or 
     31502 of 49 U.S.C. will not apply to a driver of a CMV which 
     is used to transport propane winter heating fuel or a motor 
     vehicle used to respond to a pipeline emergency if such 
     regulations would prevent the driver from responding to an 
     emergency condition requiring immediate response. ``Emergency 
     condition requiring immediate response'' is also defined.


                sec. 4148. substance abuse professionals

     House Bill
       Sec. 4129.
       This section requires the Secretary to update the current 
     regulatory definition of a substance abuse professional to 
     include State licensed or certified mental health counselors, 
     as well as individuals certified as addiction specialists by 
     the American Academy of Health Care Providers in the 
     Addictive Disorders.
     Senate Bill
       No provision.
     Conference Substitute
       The conference adopts the House provision with 
     modification.


                   sec. 4149. office of intermodalism

     House Bill
       No provision.
     Senate Bill
       Sec. 7601.
       The Senate provision allows the Director of the Office of 
     Intermodalism to use funds made available for grants to the 
     States under section 5504 of Title 49, United States Code to 
     provide technical assistance for intermodal data collection. 
     The provision also instructs the Director to develop a plan 
     to improve the national intermodal transportation system and 
     to do a progress report on such improvements. Additionally, 
     the Director, in conjunction with the Director of the Bureau 
     of Transportation Statistics, shall develop common measures 
     to compare transportation investments across modes and to 
     formulate new methodology for measuring the impacts of 
     intermodal transportation.
     Conference Substitute
       The Conference adopts the Senate position with 
     modifications.

               Subtitle B--Household Goods Transportation

       Oversight of the interstate household goods moving industry 
     had been the responsibility of the Interstate Commerce 
     Commission (ICC) prior to the ``sun-setting'' of the ICC by 
     the ICC Termination Act of 1995. Most Federal oversight 
     responsibilities for the transportation of household goods 
     were transferred to the FHWA and later transferred to FMCSA 
     upon enactment of MCSIA in 1999. FHWA, and then FMCSA, 
     focused their limited resources on its primary mission of 
     highway safety, rather than on consumer protection. The lack 
     of Federal oversight has permitted unscrupulous ``rogue'' 
     household goods movers to exploit this regulatory gap. 
     Subtitle B of title IV of this bill provides greater 
     protection to consumers shipping their household goods via 
     motor carrier. However, these provisions only relate to the 
     movement of household goods motor carriers and brokers.


                         sec. 4201. short title

     House Bill
       No comparable provision in House bill.
     Senate Bill
       This section provides a Short Title.

[[Page H7494]]

     Conference Substitute
       The Conference adopts the Senate approach.


           sec. 4202. definitions; application of provisions

     House Bill
       Sec. 4212.
       This section defines household goods motor carrier as in 
     the business of providing transportation of household goods, 
     and offering some or all of the following services: binding 
     and nonbinding estimates, inventorying, protective packing 
     and unpacking of individual items, and loading and unloading 
     at personal residences.
     Senate Bill
       Sec. 7402.
       This section provides that the terms ``carrier'', 
     ``household goods'', ``motor carrier'', ``Secretary'', and 
     ``transportation'' have the meaning specified in section 
     13102 of title 49, United States Code. This section defines 
     household goods motor carrier as in the business of providing 
     transportation of household goods, and offering some or all 
     of the following services: binding and nonbinding estimates, 
     inventorying, protective packing and unpacking of individual 
     items at personal residences, and loading and unloading at 
     personal residences. The provision applies a limited service 
     exclusion indicating a motor carrier solely providing 
     transportation of household goods entirely packed in, or 
     unpacked from, one or more containers of trailers by the 
     individual shipper of an agent thereof is excluded from this 
     definition.
     Conference Substitute
       The Conference adopts the Senate approach along with a 
     modification to the Limited Service Exclusion. This section 
     differentiates between household goods carriers and freight 
     motor carriers.


                      sec. 4203. payment of rates

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7403.
       Under current law, a carrier must give up possession of the 
     property being transported upon receipt of payment (49 U.S.C. 
     13707(a)). This section codifies existing regulations that 
     require a carrier to give up possession of the household 
     goods so long as the shipper pays the mover 100 percent of a 
     binding estimate of the charges or 110 percent of a non-
     binding estimate of the charges. Shippers are not required, 
     as a condition of delivery, to pay unforeseen additional 
     charges not included in a binding or non-binding estimate 
     that are necessary to complete the move. This section also 
     provides that a mover may only charge a prorated share of 
     charges (based on either a binding or non-binding estimate) 
     for the partial delivery of a shipment. Under current law, 
     movers may require a shipper to pay 100 percent of the 
     charges in a binding estimate or 110 percent of the charges 
     of a non-binding estimate at the time of delivery even if 
     part of the shipment is lost or destroyed. The section also 
     states that the charges collected at delivery for 
     impracticable operations can not exceed 15 percent of all 
     other charges due at delivery. Post-contract services 
     requested by a shipper after the contract is executed are not 
     covered by this provision.
     Conference Substitute
       The Conference adopts the Senate approach.


 sec. 4204. additional registration requirements for motor carriers of 
                            household goods

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7415.
       This section requires that the Secretary may only register 
     a person to provide transportation of household goods only 
     after that person has provided evidence of participation in 
     an arbitration program; identified its tariff and provided a 
     copy of the notice of the availability of that tariff for 
     inspection; provided evidence that it has access to, has 
     read, is familiar with, and will observe all laws relating to 
     consumer protection, estimating, consumers' rights and 
     responsibilities, and options for limitations of liability 
     for loss and damage; disclose any relationship involving 
     common stock, common ownership, common management, or common 
     familial relationships between that person and any other 
     motor carrier within the last 3 years.
     Conference Substitute
       The Conference adopts the Senate approach.


              sec 4205. household goods carrier operations

     House Bill
       Sec. 4210.
       This section requires household goods motor carriers to 
     provide written estimates for shipments of household goods. 
     When providing these estimates, the motor carrier must 
     conduct a physical survey of the household goods to be 
     transported. A shipper may waive the on-site survey, but a 
     copy of the waiver must accompany the estimate and remain as 
     an addendum to the bill of lading.
       This section also provides definitions of binding, and non-
     binding, estimates. The binding estimate guarantees the total 
     cost of the move based upon the quantities and services shown 
     on the estimate.
     Senate Bill
       Sec. 7404.
       This section requires that, at the time a written estimate 
     is provided, the carrier must provide the shipper a copy of 
     DOT's pamphlet ``Ready to Move?''. Further, before a contract 
     for service is executed, the carrier must provide the shipper 
     a copy of DOT's booklet ``Your Rights and Responsibilities 
     When You Move''. The written estimate may be either binding 
     or nonbinding, and must be based on a visual inspection of 
     the household goods if they are located within a 50 mile 
     radius of the location of the carrier's household goods agent 
     preparing the estimate.
     Conference Substitute
       The Conference combines the House and Senate approach for 
     the writing requirement and estimates. The Conference also 
     adopts the Senate approach of providing education material to 
     shippers and potential shippers.


  sec. 4206. enforcement of regulations related to transportation of 
                            household goods

     House Bill
       Sec. 4201.
       This section confers authority to a State attorney General 
     of any state to bring a civil action on behalf of its 
     residents in an appropriate district court of the United 
     States to compel a motor carrier to relinquish possession of 
     a household goods shipment or to pay a civil penalty assessed 
     under section 14915.
       For purposes of bringing any civil action under this 
     section, nothing in this section shall prevent a State 
     Attorney General from exercising the powers conferred on the 
     Attorney General by the laws of such State to conduct 
     investigations or to administer oaths or to compel the 
     attendance of witnesses or the production of documentary and 
     other evidence.
       Whenever a civil action has been instituted on a defendant 
     by, or on behalf of, the Secretary for violation of any 
     provision specified in this section, a State may not 
     institute a civil action under this section. A civil action 
     under this section may be brought in the district in which 
     the defendant is found, resides, or transacts business or 
     whenever venue is proper under section 1391 of title 28.
       This section allows State attorneys general to pursue civil 
     penalties in any appropriate district court of the United 
     States in cases where a ``rogue mover'' committed repeated 
     violations of holding household goods hostage. This ability 
     to enforce Federal law by State officials will be a huge step 
     towards improving the consumer protection that has been 
     lacking since the termination of the ICC, and will help 
     augment the limited Federal resources currently available. 
     Although, this additional power may be seen by some as an 
     infringement on the long-standing ``Carmack'' amendment, the 
     Committee was careful not to touch upon any more than was 
     necessary to ensure proper enforcement at the State level.
     Senate Bill
       Sec. 7407.
       This section allows a State authority that regulates the 
     intrastate movement of household goods to enforce Federal 
     laws and regulations with respect to the transportation of 
     household goods in interstate commerce. Fines or penalties 
     imposed as a result of State enforcement of Federal law would 
     accrue to the State. A State attorney general would be 
     authorized to bring a civil action in Federal court when the 
     attorney general believes the interests of the residents of 
     the State are being threatened by a carrier or broker. The 
     State would be required to give the DOT or the STB written 
     notice when an action is about to be filed. The DOT or the 
     STB would be authorized to intervene in the action and file 
     petitions for appeal. The venue for a civil action would be 
     the judicial district where the carrier or broker operates, 
     or where the carrier or broker is authorized to provide 
     transportation, or where the defendant is found. Consistent 
     with current law, nothing prohibits States from prosecuting 
     for violations of a State criminal statute. Application of 
     these provisions are limited to individual shippers, as 
     defined in this section.
     Conference Substitute
       The Conference adopts the Senate approach, except the 
     concept of substituting the Secretary of the Department of 
     Transportation for the State in Federal Court.


  SEC. 4207. LIABILITY OF CARRIERS UNDER RECEIPTS AND BILLS OF LADING

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7405.
       This section would change the standard liability for loss 
     and damage to full value protection, defined as the 
     replacement cost in the event of loss or damage up to the 
     pre-declared total value of the shipment. Movers would be 
     allowed to offer ``released rates'' only if the shipper opts 
     out, in writing, of full value protection.
     Conference Substitute
       The Conference adopts the Senate approach.


                  SEC. 4208. ARBITRATION REQUIREMENTS

     House Bill
       Sec. 4202.
       This section requires household goods carriers to offer 
     shippers arbitration on all matters related to loss and 
     damage, including

[[Page H7495]]

     disputes about charges. This section also increases the 
     threshold for binding arbitration from $5,000 to $10,000. 
     These two changes will provide the consumer with more options 
     for settling disputes when they arise.
     Senate Bill
       Sec. 7406.
       This section requires movers to offer shippers arbitration 
     and raises the threshold for bidding arbitration from the 
     current $5,000 to $10,000. Within 18 months following 
     enactment, the Secretary is required to complete a review of 
     the results and effectiveness of arbitration programs and 
     submit a report to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure. In preparing the 
     review, the Secretary is required to provide an opportunity 
     for public comment. The purpose is to investigate whether 
     arbitrators are truly independent of both parties involved in 
     a dispute.
     Conference Substitute
       The Conference adopts the House approach.


  SEC. 4209. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS BROKERS AND 
                      UNAUTHORIZED TRANSPORTATION

     House Bill
       Sec. 4203.
       This section creates civil penalties for household goods 
     brokers who provide estimates prior to entering into a 
     contract with a household goods mover. This section also 
     creates a civil penalty for anyone who transports household 
     goods in interstate commerce without having the authority to 
     conduct that activity.
     Senate Bill
       Sec. 7412.
       This section makes a broker liable for a civil penalty of 
     at least $10,000 if the broker is found to have made a cost 
     estimate for a carrier to transport household goods without 
     first entering into an agreement with the carrier to provide 
     the service. Any person found to have provided the 
     transportation of household goods or broker services without 
     being registered to provide these services would be liable 
     for a civil penalty of at least $25,000.
     Conference Substitute
       The Conference adopts the House approach.


        SEC. 4210. PENALTIES FOR HOLDING HOUSEHOLD GOODS HOSTAGE

     House Bill
       Sec. 4204.
       This section creates civil penalties for anyone who holds a 
     person's household goods hostage once full payment (up to 110 
     percent of the estimate) has been made. The civil penalty for 
     holding household goods hostage shall not be less than 
     $10,000, and if the person holding the goods hostage is a 
     motor carrier, the carrier's operating authority will be 
     suspended for 6 months.
       This legislation codifies existing regulations that require 
     a carrier to give up possession of a household goods shipment 
     provided the shipper pays the mover 100 percent of a binding 
     estimate of the charges, or 110 percent of a non-binding 
     estimate of the charges.
       One of the most important parts of Subtitle B of Title IV, 
     is the new definition and penalties for the practice of 
     holding household goods hostage. This situation arises when a 
     household goods motor carrier informs the shipper that the 
     charges for shipping or unloading the shipper's possessions 
     have doubled, tripled, or even quadrupled, and the only way 
     the carrier will unload the goods is upon payment of these 
     higher charges. These actions, conducted primarily by ``rogue 
     movers,'' have gone largely unchecked in recent years. With 
     the addition of civil penalties, Federal and State 
     enforcement personnel have tremendous powers to prosecute 
     these individuals.
       Sec. 4214.
       This section creates a criminal penalty for a household 
     goods motor carrier who knowingly and willfully holds 
     household goods hostage by falsifying documents or demanding 
     payment of charges for services that were not performed or 
     were not necessary.
     Senate Bill
       Sec. 7413.
       The section defines the term ``failed to give up possession 
     of household goods'' as willfully refusing to relinquish 
     possession of a shipment of household goods for which the 
     shipper has tendered payment described in 49 U.S.C. 13707. A 
     carrier violating this provision is subject to a civil 
     penalty of at least $10,000, for every day the shipment is 
     held hostage constituting a separate violation, as well as a 
     twelve to thirty-six month suspension of the carrier's DOT 
     registration. A carrier convicted of holding household goods 
     hostage by falsifying documents or demanding payment for 
     charges not performed is subject to a fine under Title 18, 
     imprisonment up to five years, or both.
     Conference Substitute
       The Conference adopts portions of both bills' penalty 
     structure. The Conference agrees to a civil penalty of 
     $10,000 per violation, with a separate violation for each day 
     the violation occurs. The Conference also adopts the Senate 
     position on registration requirements. The Conference adopts 
     the Senate definition of ``failure to give up possession of 
     household goods'' and the criminal penalty language, with the 
     House criminal penalty of not more than two years.


              SEC. 4211. CONSUMER HANDBOOK ON DOT WEB SITE

     House Bill
       Sec. 4206.
       This section requires the Secretary to publish a handbook 
     about consumer's rights in readily understandable language 
     and display it prominently on the DOT website.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House approach.


        SEC. 4212. RELEASE OF HOUSEHOLD GOODS BROKER INFORMATION

     House Bill
       Sec. 4207.
       This section requires the Secretary to modify the 
     regulations to require household goods brokers to provide 
     shippers, or potential shippers, with information about the 
     motor carriers the broker uses, the broker's DOT 
     identification number, the general information handbook, and 
     a statement that the broker is not a motor carrier.
       The Committee intends to deter the current practice of some 
     brokers who advertise over the Internet, providing a low 
     estimate without seeing the items to be shipped, then trying 
     to find a carrier to transport the household goods without 
     regard to the rate the broker quoted the shipper.
     Senate Bill
       Sec. 7409.
       Within one year after the date of enactment, the Secretary 
     is required to modify regulations to require household goods 
     motor carriers and brokers to maintain a website that 
     displays their DOT assigned number and the DOT publication 
     entitled ``Your Rights and Responsibilities When You Move''. 
     Brokers also have to provide a list of all motor carriers 
     used by the broker and a statement that the broker is not a 
     motor carrier.
     Conference Substitute
       The Conference adopts the House approach.


SEC. 4213. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND PROCEDURES TO 
                    ENHANCE FEDERAL-STATE RELATIONS

     House Bill
       Sec. 4205.
       This section requires the Secretary to create a working 
     group of State attorney generals, State consumer protection 
     administrators and Federal and local law enforcement 
     officials for the purpose of developing uniform enforcement 
     procedures with respect to interstate transportation of 
     household goods. Also, this working group is exempted from 
     the Federal Advisory Committee Act.
     Senate Bill
       Sec. 7408.
       This section requires the Secretary to establish a working 
     group of State Attorneys General, State authorities that 
     regulate the movement of household goods, and Federal and 
     local law enforcement officials to develop practices and 
     procedures to enhance the Federal-State partnership in 
     enforcement efforts, exchange of information, and 
     coordination of enforcement efforts, as well as to make 
     recommendations for legislative and regulatory changes. The 
     working group is required to consult with industries involved 
     in the transportation of household goods, the public, and 
     other interested parties.
     Conference Substitute
       The Conference adopts the House approach as modified with 
     Senate language to include the public and other interested 
     parties in the consultation.


               SEC. 4214. CONSUMER COMPLAINT INFORMATION

     House Bill
       Sec. 4208.
       This section requires the Secretary to establish a system 
     for logging consumer complaints about household goods movers 
     in a database accessible to the public. This section also 
     requires the Secretary to establish a way for carriers to 
     correct any incorrect information on the database. The 
     Secretary is encouraged to use this information when 
     determining which carriers should be the subject of a 
     commercial investigation.
     Senate Bill
       Sec. 7410.
       This section directs the Secretary to establish a publicly 
     accessible database of complaints related to motor carrier 
     transportation of household goods. Complaints must be 
     forwarded to the carrier involved, and the carrier is 
     afforded an opportunity to challenge the information in the 
     database. The Secretary is required to submit an annual 
     report detailing the complaints that were filed and logged 
     over that year.
     Conference Substitute
       The Conference adopts the House approach along with the 
     Senate concept of providing public access to the complaint 
     database.


               SEC. 4215. REVIEW OF LIABILITY OF CARRIERS

     House Bill
       Sec. 4209.
       This section directs the Secretary to review current 
     regulatory requirements regarding insurance coverage provided 
     by household goods motor carriers to shippers. The review 
     should determine whether the

[[Page H7496]]

     current regulations provide adequate protection, whether the 
     shipper should purchase insurance as opposed to the carrier, 
     and whether there are abuses of the current regulations that 
     leave shippers unprotected.
     Senate Bill
       Sec. 7411.
       Within one year after the date of enactment, the STB is 
     required to complete a review of the Federal regulations 
     regarding the level of liability protection provided by 
     carriers to determine if current regulations provide adequate 
     protection; whether shippers benefit from purchasing 
     supplemental insurance coverage; and whether shippers are 
     sometimes left unprotected. The STB also is required to make 
     recommendations as to whether the current limitations on 
     liability, known as the ``Carmack Amendment'', should be 
     modified with respect to household goods movers.
     Conference Substitute
       The Conference adopts the Senate approach as modified to 
     strike the review of the ``Carmack Amendment''.


  SEC. 4216. APPLICATION OF STATE CONSUMER PROTECTION LAWS TO CERTAIN 
                        HOUSEHOLD GOODS CARRIERS

     House Bill
       Sec. 4211.
       This section requires the GAO to conduct a study of the 
     impact on motor carriers and shippers of household goods if 
     State Attorneys General and consumer protection agencies were 
     allowed to enforce their State consumer protection laws and 
     regulations with respect to interstate transportation of 
     household goods. The GAO shall provide a report to Congress 
     on the results of this study within 18 months after the date 
     of enactment.
     Senate Bill
       Sec. 7414.
       Not later than one year after the date of enactment, the 
     Secretary is required to report to Congress on the progress 
     made in implementing the provisions of this title.
     Conference Substitute
       The Conference adopts the House approach.

          Subtitle C--Unified Carrier Registration Act of 2005


                         SEC. 4301. SHORT TITLE

     House Bill
       No provision.
     Senate Bill
       Sec. 7131.
       The subtitle may be cited as the ``Unified Carrier 
     Registration Act of 2005''.
     Conference Substitute
       The conference adopts the Senate provision.


                 SEC. 4302. RELATIONSHIP TO OTHER LAWS

     House Bill
       No provision.
     Senate Bill
       Sec. 7132.
       The section would clarify that the subtitle is not intended 
     to prohibit a State from enacting or enforcing any law or 
     regulation with respect to motor carriers that is not 
     otherwise prohibited by law.
     Conference Substitute
       The conference adopts the Senate provision.


       SEC. 4303. INCLUSION OF MOTOR PRIVATE AND EXEMPT CARRIERS

     House Bill
       No provision.
     Senate Bill
       Sec. 7133.
       This section would amend 49 U.S.C. 13905 to define 
     ``registration'' for purposes of the UCRS and the UCRS Plan 
     and Agreement as the filing by a carrier of a MCS Form 150 to 
     obtain a DOT identification number. Registration includes 
     those carriers who have obtained operating authority from the 
     FMCSA, as well as those carriers exempt from the provisions 
     of that chapter, such as intermodal carriers, transporters of 
     agricultural products, private carriers, freight forwarders, 
     brokers, and leasing companies. Although not affecting the 
     levels or types of insurance required by private or for-hire 
     carriers, the section extends the requirement to file 
     evidence of financial responsibility in the amounts currently 
     required by 49 U.S.C. 31138 and 31139 to all ''registered'' 
     carriers. It does not affect the levels or types of insurance 
     required by registered carriers. The section also would 
     require the Secretary to prescribe the form of evidence that 
     will be required of motor private carriers.
     Conference Substitute
       The conference adopts the Senate provision.


             SEC. 4304. UNIFIED CARRIER REGISTRATION SYSTEM

     House Bill
       Sec. 4117.
       This section repeals the single state registration system 
     and requires FMCSA to complete a rule-making for an on-line 
     registration system to replace the old registration system 
     originally administered by the Interstate Commerce 
     Commission. This rule- making must be completed within one 
     year.
     Senate Bill
       Sec. 7134.
       This section would direct the Secretary, in cooperation 
     with States and industry representatives, to develop a 
     single, on-line system, within one year following enactment, 
     containing all records of motor carriers registered with DOT, 
     including their safety data, DOT identification number (which 
     will be replacing the MC number for all motor carriers), 
     evidence of financial responsibility, and the service of 
     process agents. Federal and State agencies, carriers, 
     shippers and the public would have access to the system. The 
     UCRS would replace the SSRS. The section also would require 
     the Secretary to adopt procedures enabling a carrier to 
     correct any erroneous data contained anywhere in the UCRS and 
     sets the parameters for a fee system with respect to the 
     filing and retrieval of information from the UCRS. The fee 
     for a new registrant would be required as nearly as possible 
     to cover the costs of processing the registration and 
     conducting the safety audit or examination, if required, but 
     could not exceed $300. The fee for filing evidence of 
     financial responsibility could not exceed $10 per filing.
     Conference Substitute
       The conference adopts the Senate provision.


          SEC. 4305. REGISTRATION OF MOTOR CARRIERS BY STATES

     House Bill
       No provision.
     Senate Bill
       Sec. 7135.
       The section would make it an unreasonable burden on 
     interstate commerce for any State or political subdivision to 
     impose, enact, or enforce any requirement or levy any fee on 
     for-hire and private interstate motor carriers for: (1) 
     registering the carrier's interstate operations with a State, 
     (2) filing evidence of financial responsibility with a State, 
     (3) filing the name of the local agent for service of process 
     with a State, or (4) renewing intrastate authority, insurance 
     filings, or other filing requirements if the carrier is 
     registered with FMCSA and in compliance with other applicable 
     State laws. Item (4) would not apply to certain carrier 
     operations that are specifically exempted from preemption 
     provisions, such as purely intrastate bus operations, 
     intrastate transportation of household goods, non-consensual 
     towing, and the transportation of waste and recyclables. The 
     section would preserve the exemption for interstate carriers 
     from State sales taxes and other fees if a State provides 
     such an exemption to intrastate carriers. The section would 
     not limit State fuel taxes or vehicle registration fees. The 
     section also would establish a 15-member Board of Directors 
     comprised of the Secretary of Transportation, representatives 
     of participating States, and representatives of the trucking 
     industry to govern the new program. The Board would be 
     required to develop the rules and regulations that will 
     govern UCRS and submit the rules and regulations to the 
     Secretary for approval. States wishing to participate in UCRS 
     would be required to submit a plan to the Secretary, within 
     three years following enactment, identifying the State agency 
     that will administer UCRS and containing assurances that an 
     amount at least equal to the revenue derived from UCRS will 
     be devoted to motor carrier safety. States declining to 
     participate would lose the right to share in UCRS revenues. 
     UCRS fees would be determined by the UCRS Board of Directors 
     with the approval of the Secretary and be based on the 
     size of a carrier's commercial vehicle fleet. At least 
     four, but no more than six, ranges of fleet size could be 
     established by the Board for purposes of the fee 
     structure. Brokers, non-vehicle operating freight 
     forwarders, and leasing companies would pay the fee 
     established for smallest carrier fleet. The level of fees 
     could be adjusted if the revenues are deficient or exceed 
     those needed to cover the systems cost and the revenues to 
     which the States are entitled. Fees would be paid to the 
     carrier's base-State, generally the State in which the 
     carrier maintains its principal place of business. States 
     that currently participate in the SSRS and choose to 
     participate in UCRS would be guaranteed the revenues they 
     derived from SSRS during the last fiscal year ending prior 
     to enactment of this Act. States that did not participate 
     in SSRS but opt to join UCRS would be entitled to annual 
     revenues of not more than $500,000. The UCRS Board of 
     Directors would determine the amount of UCRS revenues to 
     which a State is entitled, with the approval of the 
     Secretary. Each participating State would be entitled to 
     retain funds equivalent to the revenues to which it is 
     entitled. Excess funds would be deposited in a designated 
     repository for distribution on a pro rata basis to those 
     States which do not collect the full amount of the 
     revenues to which they are entitled. Remaining funds would 
     be used to offset the cost of the operation of UCRS. Any 
     remaining funds after distribution to the States and 
     payment of costs would be held in the repository and the 
     next year's fees would be reduced accordingly. The section 
     would allow the Secretary to request the Attorney General 
     to bring a civil action to enforce the terms of the Plan 
     and Agreement, including injunctive relief. States could 
     impose fines and other penalties against any party that 
     does not submit the required information or pay the 
     required fees. States would be prohibited from requiring a 
     carrier from having any indicia or other document as 
     evidence of compliance. Finally, the section would allow a 
     State to elect to apply the provision of UCRS to carriers 
     that operate solely in intrastate commerce.

[[Page H7497]]

     Conference Substitute
       The conference adopts the Senate provision with 
     modifications.


                 SEC. 4306. IDENTIFICATION OF VEHICLES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7136.
       Section 7136 would prohibit a State or political 
     subdivision from requiring a motor carrier, motor private 
     carrier, or freight forwarder to display any additional form 
     of identification on or in a commercial vehicle. The 
     prohibition would not apply to credentials required under the 
     International Registration Plan or the International Fuel Tax 
     Agreement, or in connection with Federal hazardous materials 
     regulations or Federal vehicle inspection standards.
     Conference Substitute
       The conference adopts the Senate provision with 
     modifications.


       SEC. 4307. USE OF UCR AGREEMENT REVENUES AS MATCHING FUNDS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7137.
       UCRS revenues may be used to meet a State's match for MCSAP 
     funds.
     Conference Substitute
       The conference adopts the Senate provision.


                         SEC. 4308. REGULATIONS

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       This section allows the Secretary to establish regulations 
     to carry out this subtitle.
     Conference Substitute
       The conference adopts the Senate approach.

                           TITLE V--RESEARCH

                          Subtitle A--Funding


               sec. 5101. authorization of appropriations

     House Bill
       Sec. 5101.
       This section provides authorizations for the programs in 
     the Research Title. The Surface Transportation Research 
     Program and the Technology Deployment program, which were 
     separate programs in the Transportation Equity Act for the 
     21st Century (TEA 21), are now merged into one program--the 
     Surface Transportation Research, Development, and Deployment 
     Program.
     Senate Bill
       Sec. 2001.
       This section authorizes sums out of the Highway Trust Fund 
     (other than the Mass Transit Account) for Surface 
     Transportation Research, the Surface Transportation-
     Environmental Cooperative Research Program, Training and 
     Education, the Bureau of Transportation Statistics, ITS 
     Standards, Research, Operational Tests and Development, and 
     University Transportation Centers. It provides for the period 
     of availability of funds for obligation and the Federal share 
     of project cost.
     Conference Substitute
       This section reauthorizes programs in the Research title 
     including the Surface Transportation Research, Development, 
     and Deployment Program; Training and Education; Bureau of 
     Transportation Statistics; University Transportation 
     Research; and ITS Research.


                     sec. 5102. obligation ceiling

     House Bill
       Sec. 5102.
       This section establishes the obligation ceiling for fiscal 
     years 2004 through 2009.
     Senate Bill
       Sec. 2002.
       This section sets limits on obligations for spending under 
     Title II for Transportation Research.
     Conference Substitute
       This section sets the obligation ceiling for spending under 
     this Title.


                          sec. 5103. findings

     House Bill
       Sec. 5103.
       This section includes congressional findings related to the 
     importance of transportation research and development.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.

            Subtitle B--Research, Technology, and Education


             sec. 5201. research, technology and education

     House Bill
       Sec. 5201.
       This section establishes basic principles for 
     transportation research, including the federal responsibility 
     and role, stakeholder input, competition, and performance 
     review. This section provides the Secretary with authority to 
     enter into cooperative agreements and establishes a mechanism 
     to facilitate ``pooled funding'' of projects when several 
     states wish to fund a research project of common interest to 
     those states.
       One of the principles governing research and technology 
     investments directs that the Federal highway research program 
     would become more oriented toward exploratory advanced 
     research. The 20-year Long-Term Pavement Performance Program, 
     initiated in the late 1980's will be continued to its 
     conclusion in 2009. The role and function of the Turner-
     Fairbank Highway Research Center is codified in law.
     Senate Bill
       Sec. 2101. Subsection 502.
       This subsection authorizes the Secretary to carry out 
     research, development, testing, and technology transfer 
     activities. The Secretary may, independently or in 
     cooperation with others, carry out activities in research, 
     development, and technology transfer activities. In addition, 
     the Secretary may test, develop, or assist in testing and 
     developing any material, invention, patented article, or 
     process. Research activities must be consistent with the 
     strategic plan required under section 508. All parties 
     entering into contracts, cooperative agreements, or other 
     transactions with the Secretary to perform research or 
     provide technical assistance shall be selected on a 
     competitive basis and on the basis of a peer review. The 
     Federal share of the cost of activities carried out under a 
     cooperative research and development agreement shall not 
     exceed 50 percent, unless otherwise approved by the 
     Secretary.
       The subsection establishes a new Advanced Long-Term 
     Research program. Also established are a high-performance 
     concrete bridge research program, a high-performing steel 
     bridge program, and a biobased transportation research 
     program. The high-performance concrete bridge research 
     program includes funding to carry out demonstration projects 
     involving the use of ultra-high performance concrete with 
     ductility. The Seismic Research Program, Long-Term Pavement 
     Performance Program (LTPP), and the Infrastructure Investment 
     Needs Report are continued. The subsection concludes the LTPP 
     on September 30, 2009. The due dates for the infrastructure 
     needs report is changed from January 31 to July 31. This 
     subsection also requires the Secretary, in consultation with 
     the Secretary of Homeland Security, to develop a 5-year 
     strategic plan for research and technology transfer and 
     deployment activities pertaining to the security aspects of 
     highway infrastructure and operations aspects.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications and additions from the Senate provision.
       Congress encourages the Department to use the Volpe Center 
     as a source for transportation research and development and 
     related activities. The Volpe Center is uniquely positioned 
     to assist Executive Branch agencies in fulfilling 
     transportation research and development initiatives, solving 
     challenges related to integrating transportation and homeland 
     security issues and achieving the letter and intent of 
     legislative mandates associated with the continued 
     authorization of Departmental activities.


  sec. 5202. long-term bridge performance program; innovative bridge 
                    research and deployment program

     House Bill
       Sec. 5202.
       This section establishes a 20-year Long-Term Bridge 
     Performance Program, modeled on the Long-Term Pavement 
     Performance Program. An Innovative Bridge Research and 
     Deployment program to demonstrate innovative designs and 
     construction methods for the construction, repair and 
     rehabilitation of bridges is established.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with some 
     modifications and additions, including steel bridge testing. 
     Programs under Senate section 2101, including high-
     performance steel bridge research and technology transfer 
     program are added to the provision.


                    sec. 5203. technology deployment

     House Bill
       Sec. 5204.
       This section establishes an Innovative Pavement Research 
     and Deployment program to demonstrate innovative pavement 
     technologies, practices, and performance. The goals of this 
     program include new, cost-effective designs to extend 
     pavement life and performance, and the reduction of both 
     initial cost and life-cycle cost of pavements. A Safety 
     Innovation Deployment Program is established to foster the 
     deployment and evaluation of safety technologies and 
     innovations at State and local levels.
     Senate Bill
       Sec. 2101. Subsection 503.
       This subsection amends the Technology Deployment 
     Initiatives and Partnerships Program and the Innovative 
     Bridge Research and Construction Program under section 503, 
     Title 23, USC. The Technology Application Initiatives and 
     Partnerships Program is established to accelerate the 
     transportation community's adoption of innovative 
     technologies. As amended, the focus on bridge structures 
     under the Innovative Surface Transportation Infrastructure 
     Research and Construction Program is expanded to include all 
     highway structures.

[[Page H7498]]

     Conference Substitute
       The Conference adopts the House provision with some 
     modifications. Alternative materials, asphalt, and alkali 
     silica reactivity (ASR) authorized under Senate section 2001 
     are added to this section. Project and programs related to 
     ASR should further development and deployment of techniques 
     to prevent and mitigate alkali silica reactivity, including 
     lithium based techniques, and assist states in inventorying 
     existing structures for ASR.
       The Conference also provides for research on wood composite 
     materials in multi-modal transportation facilities.


                   sec. 5204. training and education

     House Bill
       Sec. 5205.
       The National Highway Institute--the training office of the 
     Federal Highway Administration--is continued and the general 
     topics for courses that it develops and administers are 
     specified. The Local Technical Assistance Program (LTAP) is 
     reauthorized. The federal share for State LTAP grant 
     recipients is up to 50 percent and the share for tribal 
     technical assistance centers is 100 percent. Federal law is 
     revised to allow states to spend NHS, IM, STP, CMAQ, and 
     Bridge funds for transportation workforce development, 
     training, and education. The federal share is 100 percent for 
     the workforce development activities. This section also 
     authorizes the Garrett A. Morgan Technology and 
     Transportation Education program.
       Sec. 5206.
       This section establishes a Freight Planning Capacity 
     Building Program to improve the capabilities of Metropolitan 
     Planning Organizations (MPOs) and other planning agencies in 
     transportation planning for freight.
     Senate Bill
       Sec. 2101. Subsection 504.
       Section 504(a)(3) of title 23 is modified to emphasize 
     asset management and the application of emerging technologies 
     as two areas in which the Institute shall develop courses. 
     The section identifies additional courses to be developed by 
     the Institute, in consultation with state departments of 
     transportation and the American Association of State Highway 
     and Transportation Officials. Also included is the 
     requirement for the Institute to periodically review courses 
     and to make revisions or cease to offer courses as necessary. 
     The cost for course development is now explicitly stated as 
     part of the cost of training and education to be paid by a 
     private entity or person, unless otherwise determined by the 
     Secretary.
       Section 504(a)(7) of title 23 is modified by removing the 
     limitation on the amount of fees that the Institute can 
     collect in any fiscal year. Funds made available to carry out 
     this section may now be combined with or held separately from 
     fees collected under memoranda of understanding, regional 
     compacts, and other similar agreements, in addition to being 
     combined with or held separately from fees collected under 
     this section as previously allowed.
       Changes to the Local Technical Assistance Program add 
     incident response and operations as areas in which the 
     Secretary can assist transportation agencies and governments 
     under grants, cooperative agreements, and contracts. Where 
     urbanized areas are cited, the qualifying definition of 
     population sizes between 50,000 and 100,000 is no longer 
     included. Finally, ``regional cooperation'' is promoted under 
     Section 504(2)(C) as an area for assisting urban 
     transportation agencies.
       The Dwight David Eisenhower Transportation Fellowship 
     Program is continued to allow the Secretary to make grants 
     for research fellowships for the purpose of attracting 
     qualified students to the field of transportation.
     Conference Substitute
       The Conference adopts the House provision with some 
     modifications to include Senate language on LTAP, 
     ``Courses,'' and definitions.


                 sec. 5205. state planning and research

     House Bill
       No comparable provision in House bill
     Senate Bill
       Sec. 2101. Subsection 505.
       This subsection amends the program of funding to States for 
     research, development, and technology transfer activities. 
     The section now provides for the sliding scale to be 
     applicable to the Federal share of the cost of a project 
     (i.e., 80% unless determined otherwise by the Secretary). 
     This subsection adds that State Planning and Research (SPR) 
     funds may be used for the purposes authorized under the 
     International Highway Transportation Outreach Program of 
     section 506.
     Conference Substitute
       The Conference adopts the Senate provision.


    sec. 5206. international highway transportation outreach program

     House Bill
       No comparable provision in House bill
     Senate Bill
       Sec. 2101. Subsection 506.
       The International Highway Transportation Outreach Program 
     under section 506, title 23 USC is continued. A new provision 
     requires that for each fiscal year, the Secretary submits a 
     report to Congress that describes the destinations and costs 
     of international travel conducted in carrying out activities 
     under this program.
     Conference Substitute
       The Conference adopts the Senate provision.


sec. 5207. surface transportation environment and planning cooperative 
                            research program

     House Bill
       Sec. 5203.
       This section establishes a new research program to study 
     the interaction between transportation and the environment. 
     The program will be managed and administered by the National 
     Academy of Sciences. An Advisory Committee, appointed by the 
     Secretary, and with a balanced membership representing 
     transportation and environmental perspectives, will recommend 
     the national research agenda for this program.
     Senate Bill
       Sec. 2101. Subsection 507.
       The Surface Transportation-Environment Cooperative Research 
     Program under title 23 is modified to include a provision for 
     the Secretary to administer the program and sharpen the focus 
     of the research through stakeholder input via workshops, 
     symposia, and expert panel.
     Conference Substitute
       The Conference adopts the Senate provision. The Conference 
     notes the need to understand the complex relationship between 
     surface transportation and the environment.


 sec. 5208. transportation research and development strategic planning

     House Bill
       Sec. 5213.
       This section directs the Secretary to develop a five-year 
     strategic plan for transportation research and development. 
     The plan will describe the primary purposes of the 
     transportation research and development program and describe 
     the topic areas the Department intends to pursue to 
     accomplish each purpose.
     Senate Bill
       Sec. 2101. Subsection 508.
       The subsection continues the requirement of the Secretary 
     to establish a strategic planning process for research and 
     adds a provision for establishing a Surface Transportation 
     Research Technology Advisory Committee to provide program 
     advice to the Secretary.
     Conference Substitute
       The Conference adopts the House provision.


sec. 5209. national cooperative freight transportation research program

     House Bill
       Sec. 5208.
       The National Academy of Sciences will manage and administer 
     a freight transportation research program. The program's 
     purpose is to discover improved ways to provide surface 
     transportation mobility for freight movement. An Advisory 
     Committee will be appointed by the Academy and will include a 
     representative cross-section of freight stakeholders. The 
     Advisory Committee is directed to recommend a national 
     research agenda for this program.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


          sec. 5210. future strategic highway research program

     House Bill
       Sec. 5209.
       This section establishes the Future Strategic Highway 
     Research Program (F-SHRP), which is to be carried out by the 
     National Academy of Sciences. F-SHRP is modeled on the 
     Strategic Highway Research Program that was established by 
     Congress in 1987. TEA 21 directed a study be conducted to 
     determine the research agenda for a new strategic highway 
     research program. F-SHRP will carry out the recommendations 
     made by the study and will focus on four specific research 
     areas--renewal of aging highway infrastructure, human factors 
     related to highway safety, reducing highway congestion, and 
     planning and designing new highway capacity. Projects and 
     researchers will be selected to conduct research for the 
     program on the basis of merit and open solicitation of 
     proposals.
       Sec. 5214.
       This section makes claims against the National Academy of 
     Sciences, for activities conducted under 510 U.S.C. 23, 
     subject to the same limitations and exceptions applicable to 
     claims against the United States.
     Senate Bill
       Sec. 2101. Subsection 509.
       This subsection establishes a new strategic highway program 
     based on the Future Strategic Highway Research Program (F-
     SHRP) recommended in TRB Special Report 260: Strategic 
     Highway Research: Saving Lives, Reducing Congestion, 
     Improving Quality of Lives. Under this program, the National 
     Research Council shall establish and carry out the strategic 
     highway program. The program shall consider, at a minimum, 
     the results of studies relating to the implementation of the 
     Strategic Highway Safety Plan prepared by the American 
     Association of State Highway and Transportation Officials 
     (AASHTO).

[[Page H7499]]

     In administering the program, the National Research Council 
     shall acquire a qualified, permanent core staff, and ensure 
     that identified stakeholders are involved in the program.
       Before October 1, 2007, the Secretary is required to enter 
     into a contract with the TRB for completing a report on 
     implementing results of the new strategic highway program. 
     The Secretary shall submit the report to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives.
     Conference Substitute
       The Conference adopts the House provision.


        SEC. 5211. MULTISTATE CORRIDOR OPERATIONS AND MANAGEMENT

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 2101. Subsection 511.
       This subsection provides for grants to the Interstate Route 
     I-95 corridor coalition for intelligent transportation system 
     management and operations.
     Conference Substitute
       The Conference adopts the Senate provision.

         Subtitle C--Intelligent Transportation System Research


                  SEC. 5301. NATIONAL ITS PROGRAM PLAN

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 2201. Subsection 525.
       This subsection continues the requirement for the Secretary 
     to develop a National Program Plan for ITS. The National ITS 
     program addresses program goals, objectives, and milestones, 
     and must be maintained and updated as necessary and submitted 
     to Congress as part of the Surface Transportation Research 
     Strategic Plan.
     Conference Substitute
       The Conference adopts the Senate provision.


                        SEC. 5302. USE OF FUNDS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 2201. Subsection 529.
       This subsection authorizes funding for ITS outreach 
     materials and items.
     Conference Substitute
       The Conference adopts the Senate provision with a reduction 
     in the authorized amount.


                     SEC. 5303. GOALS AND PURPOSES

     House Bill
       Sec. 5602.
       The goals and purposes of the Intelligent Transportation 
     Systems Program are articulated. While the wording is 
     different from TEA 21, the substance is similar.
     Senate Bill
       Sec. 2102. Subsection 522.
       This subsection modifies the goals and purposes of the ITS 
     program. New goals are added to reflect the expanded 
     interests for the program. Other modifications reflect 
     changes in emphasis for a number of program activities.
     Conference Substitute
       The Conference adopts the House provision.


                 SEC. 5304. INFRASTRUCTURE DEVELOPMENT

     House Bill
       Sec. 5606.
       This section states that funds made available in this 
     subtitle shall be used for ITS infrastructure and not for 
     conventional highway and transit infrastructure.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


            SEC. 5305. GENERAL AUTHORITIES AND REQUIREMENTS

     House Bill
       Sec. 5603.
       This section grants the Secretary authority to use an 
     advisory committee to carry out this subtitle.
     Senate Bill
       Sec. 2201. Subsection 524.
       This subsection makes changes to general authorities and 
     requirements under TEA-21 that provide ITS program scope, 
     policy, and the requirements of the Secretary. The Secretary 
     is required to consult with the Secretary of Homeland 
     Security along with other Federal officials. This subsection 
     adds requirements for the program advisory committee 
     authorized by section 5204(h) of TEA-21, and also includes 
     the amount of funding available for the committee. Also, the 
     Secretary is required to issue revised guidelines and 
     requirements for evaluating operational test and other 
     projects.
     Conference Substitute
       The Conference adopts the House provision.


                  SEC. 5306. RESEARCH AND DEVELOPMENT

     House Bill
       Sec. 5605.
       The Secretary is directed to carry out a comprehensive 
     Intelligent Transportation Systems research, development, and 
     operational test program with priority given to enhancing 
     mobility and productivity, enhancing safety, and integrating 
     vehicle and infrastructure technologies.
     Senate Bill
       Sec. 2102. Subsection 528.
       This subsection continues ITS research and development 
     program authorized under TEA-21. Under this subsection, the 
     types of projects and activities that receive funding 
     priority are greatly broadened. Changes reflect new focus 
     areas, including activities to support goals for a national 
     5-1-1 traveler information system and reducing metropolitan 
     congestion by 5 percent by 2010.
     Conference Substitute
       The Conference adopts the House provision, with the 
     inclusion of two items from the Senate priority list.


             SEC. 5307. NATIONAL ARCHITECTURE AND STANDARDS

     House Bill
       Sec. 5604.
       The Secretary is directed to develop, implement and 
     maintain a national architecture for Intelligent 
     Transportation Systems, as well as the supporting standards 
     and protocols, to promote the widespread use of Intelligent 
     Transportation Systems. The Secretary shall designate a panel 
     of experts to advise the Secretary on ways to expedite 
     development of standards. Any Intelligent Transportation 
     Systems projects that use Highway Trust Fund monies shall 
     conform to the national architecture and applicable 
     standards.
     Senate Bill
       Sec. 2102. Subsection 526.
       This subsection continues the general requirements and 
     activities related to the national architecture and 
     standards. Changes under this subsection reflect the 
     completion of several requirements specified in TEA-21. These 
     include the report to Congress on critical standards and the 
     provision for a communication spectrum for ITS. Deployment is 
     no longer emphasized as a direct activity of the Secretary. 
     Exceptions to conformity with the national ITS architecture 
     no longer include upgrades or expansions of existing systems, 
     as allowed under TEA-21.
     Conference Substitute
       The Conference adopts the House provision.


        SEC. 5308. ROAD WEATHER RESEARCH AND DEVELOPMENT PROGRAM

     House Bill
       Sec. 5607.
       This section establishes a program to enhance the 
     development and use of road weather information and 
     technologies.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


        SEC. 5309. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE

     House Bill
       Sec. 5610.
       This section directs the Secretary to establish three 
     centers for surface transportation excellence--including 
     centers for environmental excellence, rural safety, and 
     project finance--and outlines the goals, roles, and 
     administration of the centers.
     Senate Bill
       Sec. 2103.
       This section establishes five centers for surface 
     transportation excellence in areas of Environmental 
     Excellence, Operations Excellence, Excellence in Surface 
     Transportation Safety, Excellence in Project Finance, and 
     Excellence in Asset Management.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications.


                         SEC. 5310. DEFINITIONS

     House Bill
       Sec. 5608.
       This section defines key terms, including ITS, Intelligent 
     Transportation Infrastructure, National Architecture, 
     Standard, and Transportation Systems Management and 
     Operations.
     Senate Bill
       Sec. 2102.
         Subsection 523.
       This subsection deletes the word `corridor' from terms used 
     in the new subtitle to reflect the deletion of the corridor 
     development program under TEA-21. Terms relating to 
     commercial vehicle operations are moved to the subsection on 
     commercial vehicle systems.
     Conference Substitute
       The Conference adopts the House provision with the addition 
     of ``photonics'' to the ITS definitions.

      Subtitle D--University Transportation Research; Scholarship 
                             Opportunities


         SEC. 5401. NATIONAL UNIVERSITY TRANSPORTATION CENTERS

     House Bill
       Sec. 5301.
       This section provides for national university 
     transportation centers and states that

[[Page H7500]]

     the role of such centers shall be to advance significantly 
     transportation research on critical national transportation 
     issues and to expand the workforce of transportation 
     professionals.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with some 
     modifications. The number of National University 
     Transportation Centers is increased from five to ten.


             SEC. 5402. UNIVERSITY TRANSPORTATION RESEARCH

     House Bill
       Sec. 5302.
       This section provides for grants to be made to University 
     Transportation Centers (UTCs). Funding is available to ten 
     Regional University Transportation Centers, ten Tier I 
     Centers, and ten Tier II Centers. The purpose of UTCs is to 
     significantly advance the state-of-the-art in transportation 
     research and expand the workforce of transportation 
     professionals through research, education and technology 
     transfer. Regional UTCs, Tier I Centers, and Tier II Centers 
     will be subject to competitive selection every four years and 
     all institutions must meet eligibility criteria to qualify 
     for competition. The research and education activities of 
     each Center must support a national strategy for surface 
     transportation research. Each Center must match each dollar 
     of federal grant funds with one dollar of local funds.
     Senate Bill
       Sec. 2101. Subsection 510.
       This subsection modifies the existing university 
     transportation research program. Awards are increased from 
     thirty three (33) to forty (40) eligible institutions. The 
     subsection continues the establishment of one (1) regional 
     center at institutions in each of the ten (10) Federal 
     regions. A new provision allows locating no more than one 
     center (or one lead university in a consortia) in any State. 
     Regional centers are selected based on proposals requested by 
     the Secretary; the section provides for naming the remaining 
     institutions. All grantees must otherwise meet specified 
     requirements that include a 6-year program plan and annual 
     report to the Secretary on projects and activities. A peer 
     review is required for reports on research under this 
     program. The Secretary must coordinate activities of the 
     centers and operate a clearinghouse for the dissemination of 
     results from activities. Restrictions have been placed on the 
     amount of funds available to centers that can be used for 
     faculty positions, laboratory facilities, student 
     internships, and administration.
     Conference Substitute
       The Conference adopts the House provision with some 
     modifications. There will be twenty-two strategically 
     designated Tier II Centers as well as updated competition 
     dates for Regional and Tier I Centers.

                       Subtitle E--Other Programs

     SEC. 5501. TRANSPORTATION SAFETY INFORMATION MANAGEMENT 
                   SYSTEM PROJECT

     House Bill
       Sec. 5210.
       Funding is provided over two years to develop a software 
     system that will link driver licensing, vehicle registration, 
     roadway inventory, and motor carrier databases. The purpose 
     of this system is to more easily identify the cause of 
     accidents, injuries, and fatalities, so that appropriate 
     countermeasures can be developed.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


SEC. 5502. SURFACE TRANSPORTATION CONGESTION RELIEF SOLUTIONS RESEARCH 
                               INITIATIVE

     House Bill
       Sec. 5211.
       Two independent research programs are established to assist 
     State DOTs and MPOs in measuring and addressing surface 
     transportation congestion problems. These research programs 
     will focus on the effectiveness of Congestion Management 
     Systems and identify the best methods for acquiring and 
     reporting congestion information. Funding is included for 
     technical assistance and training.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


               sec. 5503. motor carrier efficiency study

     House Bill
       Sec. 5212.
       This section provides funding to study the use of wireless 
     technology to improve the safety and productivity of motor 
     carrier freight transportation. The study will assess use of 
     wireless technologies in fuel monitoring and management, 
     Radio Frequency Identification technology, electronic 
     manifest systems, and cargo theft prevention.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


     SEC. 5504. CENTER FOR TRANSPORTATION ADVANCEMENT AND REGIONAL 
                              DEVELOPMENT

     House Bill
       Sec. 5215.
       This section establishes a Center for Transportation 
     Advancement and Regional Development to assist, through 
     training and research, the development of rural and small 
     metropolitan transportation systems.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


      SEC. 5505. TRANSPORTATION SCHOLARSHIP OPPORTUNITIES PROGRAM

     House Bill
       Sec. 5303.
       This section authorizes the Secretary to establish a 
     scholarship program to attract qualified students for 
     transportation-related critical jobs.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The conference adopts the House provision.


 SEC. 5506. COMMERCIAL REMOTE SENSING PRODUCTS AND SPATIAL INFORMATION 
                              TECHNOLOGIES

     House Bill
       Sec. 5402.
       This section directs the Secretary, in cooperation with 
     NASA and a consortium of university research centers, to 
     carry out a program to validate commercial remote sensing 
     products and spatial information technologies for application 
     to transportation infrastructure.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications.


       SEC. 5507. RURAL INTERSTATE CORRIDOR COMMUNICATIONS STUDY

     House Bill
       Sec. 5609.
       This section provides funding for a study on the 
     feasibility of installing fiber optic cabling and wireless 
     communication infrastructure along Interstate route corridors 
     for improved communications services to rural communities.
     Senate Bill
       No comparable section in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


   SEC. 5508. TRANSPORTATION TECHNOLOGY INNOVATION AND DEMONSTRATION 
                                PROGRAM

     House Bill
       Sec. 5403.
       This section continues the Intelligent Transportation 
     Infrastructure demonstration initiative enacted under section 
     5117 of TEA-21.
     Senate Bill
       Sec. 2105.
       This section continues the Intelligent Transportation 
     Infrastructure demonstration initiative by authorizing 
     $4,465,409 in funds from the Highway Trust Fund for fiscal 
     years 2005 through 2009. The section also exempts ITS project 
     involved under the program that include privately-owned 
     components from State laws that regulate or prohibit 
     commercial activities on highways funded with Federal-aid 
     highways funds.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


                           SEC. 5509. REPEAL

     House Bill
       Sec. 5611.
       The Intelligent Transportation Systems subtitle in TEA 21 
     is repealed and replaced by the sections 5601-5608 described 
     above.
     Senate Bill
       Sec. 2201. Subsection 529(b).
       The Intelligent Transportation Systems subtitle in TEA 21 
     is repealed and replaced by the sections 5601-5608 described 
     above.
     Conference Substitute
       The Conference adopts the House provision.


                           SEC. 5510. NOTICE

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 2003.
       This section outlines requirements for the Department of 
     Transportation to notify the appropriate committees of 
     Congress should any reprogramming of authorized funds or 
     reorganization take place.
     Conference Substitute
       The Conference adopts the Senate provision.


           SEC. 5511. MOTORCYCLE CRASH CAUSATION STUDY GRANTS

     House Bill
       Sec. 2006.
       The Secretary is required to conduct a study of the causes 
     of motorcycle crashes and to submit a report to Congress on 
     the results of the study not later than 3 years after the 
     date of enactment of this legislation.

[[Page H7501]]

     Senate Bill
       Sec. 2104.
       This section provides the Secretary with the authority to 
     issue grants to conduct motorcycle crash causation studies.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


       SEC. 5512. ADVANCED TRAVEL FORECASTING PROCEDURES PROGRAM

     House Bill
       Sec. 5207.
       TRANSIMS is a state-of-the-art travel forecasting model 
     that will have special utility for large MPOs in areas with 
     air quality problems. Funding grants to states and MPOs will 
     support deployment of this forecasting model.
     Senate Bill
       Sec. 2101. Subsection 512.
       This subsection continues the deployment of the advanced 
     transportation model known as the ``Transportation Analysis 
     Simulation System.''
       This subsection allocates $893,082 from funds authorized 
     for surface transportation research for fiscal years 2005 
     through 2009 for the Transportation Analysis Simulation 
     System (TRANSIMS). This subsection ensures that TRANSIMS is 
     further developed for additional applications, that training 
     and technical assistance for the implementation and 
     application of the program is available for States, local 
     governments and transportation planning organizations, that a 
     method is developed to simulate the national transportation 
     infrastructure as a single integrated system, and that 
     funding is provided for the implementation of the TRANSIMS.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications.


                       SEC. 5513. RESEARCH GRANTS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference creates a provision for transportation 
     research grants.


   SEC. 5514. COMPETITION FOR SPECIFICATION OF ALTERNATIVE TYPES OF 
                             CULVERT PIPES.

     House Bill
       No comparable provision in House bill.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference creates a provision ensuring States provide 
     for relevant competition.

            Subtitle F--Bureau of Transportation Statistics


             Sec. 5601. Bureau of Transportation Statistics

     House Bill
       Sec. 5501.
       This section provides for the appointment of the Director 
     of the Bureau of Transportation Statistics (BTS) and defines 
     the Director's responsibilities. The National Transportation 
     Library is retained as part of BTS's activities. Several 
     provisions are included on the collection of freight data, 
     including a requirement for mandatory response by 
     corporations to BTS requests for data. Safeguards are 
     provided to prevent disclosure of freight data that can be 
     identified with any corporation or individual. An Advisory 
     Council on Transportation Statistics is established.
       Sec. 5502.
       This section describes uses and limits of reports produced 
     by the Bureau of Transportation Statistics.
     Senate Bill
       Sec. 2102.
       This section provides for activities of the Bureau of 
     Transportation Statistics relating to transportation data 
     collection and statistical analysis. The section requires 
     that not later than 90 days after the date of enactment of 
     this Act, the Secretary shall provide a grant to, or enter 
     into a cooperative agreement or contract with the 
     Transportation Research Board to conduct a study of data 
     collection and statistical analysis efforts. The Board shall 
     submit to the Secretary, the Committee on Environment and 
     Public Works of the Senate, and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives a final report on the results of the study. 
     The Bureau shall, to the maximum extent practicable, 
     implement recommendations included in the study. The 
     Comptroller General of the United States shall also conduct a 
     review of the study. Each year, beginning in 2004, the Bureau 
     shall prepare and submit to the Secretary an annual report on 
     progress made in response to the study recommendations.
     Conference Substitute
       The Conference adopts the House provision.

         TITLE VI--TRANSPORTATION PLANNING AND PROJECT DELIVERY


                 SECTION 6001. TRANSPORTATION PLANNING

     House Bill
       Sec. 6001.
       This section creates a new chapter 52 in title 49 to 
     address transportation planning and environmental review for 
     transportation projects. Existing planning provisions for the 
     highway (sections 134 and 135 in title 23) and transit 
     programs (sections 5303-5305 in title 49) are combined to 
     form a unified planning title. Minor adjustments are made to 
     eliminate inconsistencies and to reflect updated 
     terminologies and practices.
       The section also extends the update cycle of metropolitan 
     long-range transportation plans from 3 years under current 
     regulation to 4 years. It extends the update cycle of 
     metropolitan transportation improvement programs (TIPs) from 
     2 years under current law to 4 years. It requires MPOs to 
     include in their TIPs projects that are designed to meet the 
     set-aside requirements (for a portion of a state's annual 
     apportionments for NHS, CMAQ, STP, Interstate Maintenance, 
     and Bridge programs) for congestion relief activities as 
     mandated under section 139 of title 23.
       The section similarly extends the update cycle of state 
     transportation improvement programs from 2 years to 4 years. 
     It requires the state transportation improvement program to 
     reflect the priorities for congestion relief activities that 
     are included in the metropolitan TIPs.

                    Subchapter A--General Provisions

     Section 5201. Definitions.
       All transportation planning definitions used throughout 
     chapter 52, title 49 U.S.C. are included in this section.

                 Subchapter B--Transportation Planning

     Section 5211. Policy.
       This section is consistent with section 134 of title 23, 
     United States Code and metropolitan planning provisions in 
     sections 5303 and 5304 of title 49, United States Code.
     Section 5212. Definitions.
       Definitions from section 101(a) of title 23 and section 
     5302 are applicable to this subchapter. In subsection (b) six 
     definitions used in this subchapter are listed. These include 
     metropolitan planning area, metropolitan planning 
     organization, non-metropolitan area, non-metropolitan local 
     official, TIP, and urbanized area.
     Section 5213. Metropolitan Transportation Planning.
       Subsection (a) describes the general requirements for 
     metropolitan transportation planning. More specifically, it 
     directs MPOs, in cooperation with States and public 
     transportation operators, to develop long-range 
     transportation plans and transportation improvement programs. 
     These plans and Transportation Improvement Programs (TIPs) 
     will encompass all modes of transportation and will be 
     intermodal in nature.
       Subsection (b) specifies the method by which MPOs are 
     designated. Every urbanized area with a population of more 
     than 50,000 people will have an MPO either by agreement 
     between the Governor and local officials representing at 
     least 75 percent of the affected population or in accordance 
     with State and local law. Each MPO will consist of local 
     officials, officials of major local metropolitan 
     transportation agencies and appropriate State officials. Once 
     an MPO is designated, it will remain so designated until it 
     is redesignated under the procedures outlined in Section 
     5213(b)(5) or (6).
       Subsection (c) describes the methods for determining the 
     boundaries of metropolitan planning areas that do not cross 
     State lines. This subsection is consistent with section 
     134(c) of title 23, United States Code.
       Subsection (d) outlines methods for coordinating the 
     planning process between responsible parties in metropolitan 
     areas spanning two or more states.
       Subsection (e) involves coordination and consultation 
     between MPOs in the event of jurisdictional conflicts. This 
     must occur in cases in which more than one MPO has 
     jurisdiction over an area or an area is designated as a 
     nonattainment area for ozone or carbon monoxide under the 
     Clean Air Act. Coordination between MPOs will also occur if a 
     transportation improvement funded by the Highway Trust Fund 
     (HTF) runs through more than one MPO.
       Section 5213(e)(3) provides that when planning 
     transportation projects, the Secretary will encourage each 
     MPO to consult with officials involved in planning activities 
     that are affected by transportation in the area. These 
     affected activities include such things as State and local 
     planned growth, economic development, environmental 
     protection, airport operations, and freight movements. The 
     subsection also requires that transportation plans consider 
     other transportation services within the metropolitan area 
     that are provided by other governmental agencies and 
     nonprofit organizations, so that metropolitan transportation 
     services can be more coordinated.
       Section (f) outlines the goals and objectives MPOs should 
     strive to attain when planning area transportation projects. 
     Projects should support economic vitality, increase the 
     safety and security of the transportation system, increase 
     accessibility and mobility for both people and freight, 
     protect and enhance the environment, promote integration 
     between the various modes of transportation, as well as 
     maintaining efficiency of the current transportation system. 
     This subsection also states that failure to consider any and 
     all of the objectives described in Section 5213(f)(1) may not 
     be reviewed by any court.
       Subsection (g) details the contents of transportation plans 
     and the process MPOs must follow when developing such plans.
       Subsection (h) details the contents of metropolitan 
     transportation improvement programs (TIPs) and the process 
     MPOs must follow when developing TIPs. Included in each

[[Page H7502]]

     TIP should be a funding estimate, a priority project list, a 
     description of each project, and a financial plan. TIPs will 
     be published for public comment. Unlike current law section 
     134(h)(1)(D) of title 23, U.S.C., this subsection 
     specifically details that TIPs must be updated at least every 
     4 years, as opposed to every 2 years under current law. This 
     section requires the project description in the TIP to 
     include sufficient descriptive material, such as the ``type 
     of work, termini, length, and other similar factors'', to 
     identify the project or phase of the project. In addition, 
     the TIP shall include a listing of congestion relief 
     activities in 5213(h)(2)(D).
       Subsection (i) involves transportation management areas, 
     which are defined as urbanized areas with a population over 
     200,000. The transportation plans in these areas are based on 
     a continuing and comprehensive planning process carried out 
     by the MPO. Congestion management is achieved through the use 
     of travel demand reduction and operational management 
     strategies. Congestion relief activities under section 139 of 
     title 23 are also to be used. The Secretary must certify that 
     the planning process for each transportation management area 
     is being carried out in accordance with Federal law no less 
     often than every 4 years. This is a change from current law, 
     which mandates certification every 3 years. The Secretary has 
     the authority to withhold up to 20 percent of the funds 
     attributable to the MPO if the metropolitan planning process 
     of an MPO serving a transportation management area is not 
     certified.
       Subsection (j) gives the Secretary the authority to permit 
     an abbreviated transportation plan and a TIP for a 
     metropolitan planning area if deemed appropriate, except if 
     the metropolitan planning area is in nonattainment for ozone 
     or carbon monoxide under the Clean Air Act.
       Subsection 134(k) of 23 U.S.C. under current law, 
     concerning funds for highways and transit being transferred 
     to the Secretary in accordance with title 23, has been 
     deleted because the transferability provisions contained in 
     section 104(k) of title 23 already apply to all transfers of 
     highway funds to transit, and to the transfer of transit 
     funds to highways.
       Subsection (k) is consistent with subsection 134(l) of 
     current law and states that a metropolitan planning area 
     classified as nonattainment for ozone and carbon monoxide 
     under the Clean Air Act may not receive funds for any highway 
     project that will result in a significant increase in single-
     occupant vehicles. The only exception would be if the project 
     were addressed through a congestion management process.
       Subsection (l) is consistent with subsection 134(m) of 
     current law. This section states that MPOs do not have the 
     authority to impose legal requirements on any transportation 
     facility, provider, or project not eligible under title 23, 
     United States Code or chapter 53 of title 49, United States 
     Code.
       Subsection (m) is consistent with section 134(n) of title 
     23, United States Code and specifies that funding for the 
     metropolitan transportation planning shall be provided under 
     section 104(f) of title 23 and under section 5338(c) of title 
     49, United States Code.
       Subsection 134(n) is consistent with existing law 
     subsection 5213(n) and section 134(o) of title 23. It 
     restates current methods of review for projects included in 
     plans and programs under the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.).
     Section 5214. Statewide Transportation Planning.
       Subsection (a) requires states to develop statewide 
     transportation plans, to cover a period of 4 years and to be 
     updated every 4 years. The statewide transportation plan must 
     provide for integrated transportation facilities, including 
     accessible facilities, and be intermodal in nature.
       Subsection (b) is consistent with subsection 135(b) of 
     title 23, USC, but adds new language to recognize the 
     importance of coordinating trade and economic development 
     with transportation planning. This subsection also requires 
     the State to develop the transportation portion of the State 
     implementation plan as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.)
       Subsection (d) regarding the scope of the planning process 
     (under existing section 135(c)) is amended to reflect the 
     concept that not only projects, but also transportation 
     services, are developed through the planning process. In 
     section 5214(d)(1)(A), the term ``non-metropolitan areas'' is 
     inserted into this factor after ``States,'' to require States 
     to consider economic vitality for rural areas.
       Subsection (e) corresponds to 135(d) in title 23, and lays 
     out additional requirements for states to consider in 
     carrying out planning.
       Subsection (f) is consistent with current law provisions 
     regarding a state's development of 20-year, long-range 
     transportation plans under section 135(e) of title 23, USC.
       Subsection (g), regarding statewide transportation 
     improvement programs, is consistent with subsection 135(f) of 
     title 23, United States Code. This subsection has been 
     reorganized and it deletes some current law provisions that 
     have been superseded. Section 135(f)(1)(B)(ii)(II) required 
     that States submit to the Secretary, within one year of TEA-
     21's passage, the details of their consultation process with 
     non-metropolitan officials. This requirement has been 
     accomplished, so the provision has been eliminated.
       Subsection 5214(g)(4)(H) is a new provision to ensure that 
     the transportation improvement program reflects the 
     priorities for congestion relief required under section 139 
     of title 23, USC, as added in this Act. Subsection 5214(g)(5) 
     combines 135(f)(3)(A) and (B) of current law. This 
     subsection, concerning project selection in areas with 
     populations of less than 50,000 people, adds projects from 
     state-managed public transportation programs authorized under 
     sections 5310, 5311, 5316, and 5317 of title 49, United 
     States Code to the list of projects to be selected from the 
     TIP by the State in consultation with affected local 
     metropolitan transportation officials. Subsection 5214(g)(6) 
     states that the Secretary must approve a transportation 
     improvement program at least every 4 years, as opposed to a 
     biennial review mandated in current law.
       In subsection (h), funding for statewide transportation 
     planning is provided under subsection 104(i) of title 23 and 
     under section 5338(c) of title 49, United States Code.
       Subsections (i) and (j) are identical to existing law 
     subsections 135(h) and 135(i), respectively.
       Sec. 6005.
       This section amends section 5213(d) of title 49, U.S.C., to 
     direct that Congress must consent to interstate compacts 
     between two or more states for cooperative transportation 
     planning efforts. The Secretary will encourage Governors and 
     members of multi-state MPOs to partake in interstate compacts 
     consenting to cooperate in efforts to mutually assist 
     interstate activities as well as establishing joint 
     transportation agencies. The current law provisions regarding 
     the Lake Tahoe Regional Planning Compact are included in this 
     section.
       Sec. 6006.
       This section amends section 5213(g) of title 49, U.S.C. to 
     specify that MPOs must prepare and update their 
     transportation plans no less frequently than every 4 years. 
     (The current law update cycle is ``according to a schedule 
     that the Secretary determines to be appropriate,'' which has 
     been determined by regulation to be every 3 years in 
     nonattainment or maintenance areas and every 5 years in 
     attainment areas.)
       Sec. 6007.
       This section amends section 5214(c) of title 49, U.S.C. to 
     authorize States to enter into compacts or agreements for the 
     purpose of formal planning cooperation and coordination, 
     since some projects are multi-state in nature.
       Sec. 6008.
       This section directs the Secretary to issue regulations 
     that are consistent with the unified transportation planning 
     provisions in this title relating to the Clean Air Act.
     Senate Bill
       Sec. 1501.
       This section amends 23 U.S.C. 134(f) and 135(c) to add 
     factors that may be considered during the transportation 
     planning process. It also gives States and metropolitan 
     planning organizations (MPOs) the flexibility to determine, 
     after soliciting and considering comment from the public, 
     which of the specific factors are most appropriate for the 
     State or metropolitan area to consider. Current language in 
     the statute that bars court review of failure to consider 
     specified planning factors is retained.
       Current law requires the planning process to provide for 
     consideration of projects and strategies that will, among 
     other things, protect and enhance the environment and improve 
     quality of life. The items added by section 1501 provide 
     planners with more direction as to what those concepts mean, 
     but do not constitute a checklist with every item requiring 
     consideration by every State and MPO. Instead, the 
     legislation allows each State and MPO to decide which 
     specific factors are appropriate for consideration. Early 
     identification of potential environmental concerns may help 
     reduce or avoid delays during environmental review. The 
     Secretary is given no authority to review, for purposes of 
     planning certification, the determination of appropriate 
     factors made by a State or MPO.
       Sec. 1502.
       This section amends 23 U.S.C. 134(g) and 135(e) to require 
     MPOs and States to consult with various other agencies when 
     developing the long range transportation plan. Consultation 
     shall include comparison of the transportation plan to 
     conservation plans or maps and inventories of natural or 
     historic resources (if such plans, maps or inventories are 
     available) or consideration of areas where wildlife crossing 
     structures may be needed. The section also requires that the 
     long-range plan include a discussion of potential habitat, 
     hydrological, and environmental mitigation activities that 
     may assist in compensating for loss of habitat, wetlands and 
     other environmental functions, including areas that may have 
     the greatest potential to restore and maintain the habitat 
     types and hydrological and environmental function affected by 
     the plan.
       The requirement for transportation planners to consult with 
     appropriate resource agencies to compare transportation plans 
     with available State conservation plans or maps and available 
     inventories of natural or historic resources, as well as to 
     identify areas where wildlife crossing structures may be 
     needed, will help planners to identify and potentially avoid 
     or minimize impacts of transportation projects on these 
     resources and thereby facilitate more efficient environmental 
     reviews of individual projects.

[[Page H7503]]

     However, for various reasons including financial constraints, 
     State conservation plans or maps or inventories of natural or 
     historic resources do not exist for many areas. This 
     legislation does not require the creation of such plans, 
     maps, or inventories. Consideration of areas where wildlife 
     crossing structures may be needed is required only with 
     respect to transportation programs and strategies for the 
     future. A review of the current infrastructure is not 
     required. The discussion of potential mitigation activities 
     and areas in which to carry out those activities is intended 
     to encourage States to think strategically, particularly for 
     habitat and wetlands mitigation. The level of detail of this 
     discussion should correspond to the level of detail contained 
     in the rest of the plan. For example, a conceptual 
     transportation plan may, but is not required to, include 
     specific size or location details that would generally be 
     determined during the environmental review stage.
       Sec. 1504.
       This section amends 23 U.S.C. 134(g) and 135(e) to provide 
     that States and MPOs improve public involvement in the 
     planning process. To the maximum extent practicable, States 
     and MPOs shall hold any public meetings at convenient and 
     accessible locations and times, employ visualization 
     techniques, and provide for publication of publicly available 
     planning materials in electronically accessible formats, such 
     as the world wide web.
       Use of advancing technology to publish plans and better 
     articulate potential benefits and impacts of transportation 
     plans will improve community awareness during the planning 
     process. Early identification of community concerns may help 
     reduce or avoid delays during the environmental review stage. 
     MPOs, particularly small MPOs, and States have limited 
     resources to apply toward meeting numerous planning 
     requirements. Therefore, each MPO and State should use its 
     own discretion in allocating resources for improved 
     utilization of technology.
       Sec. 1704.
       This section amends title 23 to ensure metropolitan 
     planning in certain areas. Section 1705 supplements funding 
     for the transportation planning process with 1% of all funds 
     apportioned through the Federal Lands Highway Program to the 
     Lake Tahoe Region.
     Conference Substitute
       The Conference adopts the House provisions with several 
     modifications. First, it does not create a new chapter 52 of 
     title 49, United States Code, but rather amends title 23 and 
     chapter 53 of title 49, United States Code, to contain 
     identical planning provisions (23 U.S.C. 134 and 49 U.S.C. 
     5303 Metropolitan planning and 23 U.S.C. 135 and 49 U.S.C. 
     5304 Statewide planning).
       The House provision is modified to require metropolitan 
     plans to be updated every 5 years in areas designated 
     attainment.
       Sections 134(h)(1)(B) and (C), and 135(d)(1)(B) and (C) 
     modify existing law to give added emphasis to security and 
     safety by making each a separate planning factor.
       The Conference adopts the Senate section 1502 modified to 
     require a discussion of types of potential environmental 
     mitigation activities and potential areas to carry out such 
     activities in the plan and to require consultation, 
     including, as appropriate, comparison of transportation plans 
     with State conservation plans or maps, if available, or with 
     inventories of natural or historic resources, if available
       The Conference incorporates a modified participation plan 
     found in Senate section 6005 into the House provision. Senate 
     section 1504 on methods of public participation and 
     publication of the plan is also incorporated into the House 
     provision.
       The modified House provision retains current law section 
     134 of title 23 regarding the listing in the TIP of projects 
     funded under chapter 2 of title 23, United States Code.
       The Conference adopts a modified rulemaking requirement 
     found in Senate section 6005. The Secretary is required to 
     issue, within 180 days of enactment, regulations specifying 
     the types of data to be included in the required annual 
     listing of projects.
       The Conference also removed references to activities and 
     requirements under section 139 of title 23, United States 
     Code, as proposed in the House bill since the Conference did 
     not adopt that provision.
       The Conference adopts the Senate language on transportation 
     planning funding for the Lake Tahoe region.
       The Conference does not adopt the House language requiring 
     the Secretary to issue regulations implementing the changes 
     to transportation planning relating to the Clean Air Act.


       SECTION 6002. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT 
                             DECISIONMAKING

     House Bill
       Sec. 6002.
       Subsection (a) recognizes Enlibra principles as a sound 
     basis for interaction among Federal, state, and local 
     governments and Indian tribes. It encourages the adoption of 
     these principles in the development of highway construction 
     and transit projects. This section is intended as a statement 
     of policy. It is not intended to establish enforceable rights 
     or to modify any existing legal standards applicable to the 
     environmental review process for such projects.
       Subsection (b) creates a new Subchapter C of Chapter 52 of 
     Title 49 to address efficient environmental reviews for 
     project decisionmaking.

       Subchapter C--Efficient Environmental Reviews for Project 
                             Decisionmaking

     Section 5251. Definitions and Applicability.
       This section sets forth definitions applicable to this 
     subchapter.
     Section 5252. Project Development Procedures.
       This section establishes comprehensive project development 
     procedures for projects that require the approval of the U.S. 
     Department of Transportation. These procedures must be 
     followed for all projects that require preparation of an 
     environmental impact statement (EIS) under NEPA and may be 
     followed for any project that involves preparation of an 
     environmental assessment (EA) or categorical exclusion (CE). 
     The decision about whether to use these procedures for EA or 
     CE projects is committed to the discretion of the Secretary 
     of Transportation, acting in consultation with the project 
     sponsor.
       Subsection (a) establishes the U.S. Department of 
     Transportation as the lead agency in the environmental review 
     process for any highway, transit, or multimodal project that 
     requires the Department's approval. As the lead agency, the 
     Department is responsible for the overall direction of the 
     environmental review process. The specific responsibilities 
     of the lead agency are defined in this section. This section 
     also requires any project sponsor that is a state or local 
     government entity receiving funds under Title 23 or Title 52 
     to serve as a ``joint lead agency'' in the environmental 
     review process. The Federal lead agency and the State or 
     local agency jointly constitute the ``lead agency'' for 
     purposes of this section; accordingly, any decisions to be 
     made by the lead agency under this section must be made 
     jointly by the Federal lead agency and the State or local 
     government that serves as project sponsor. A project sponsor 
     that is not a State or local government (e.g., a project 
     sponsor that is a private company) cannot serve as a joint 
     lead agency.
       Subsection (b) establishes a new concept of a 
     ``participating agency.'' This concept is intended to be 
     distinct from, and more inclusive than, the concept of a 
     ``cooperating agency'' as established in the Council on 
     Environmental Quality (CEQ) regulations for the NEPA process. 
     The status of ``cooperating agency'' generally has been 
     assigned only to those agencies that are expected to play an 
     extensive role--in particular, an agency that has a 
     permitting responsibility with respect to a project. The term 
     ``participating agency'' is intended to be more inclusive, so 
     that it encompasses all cooperating agencies as well as any 
     other agencies that submit comments, participate in inter-
     agency review meetings, or otherwise are engaged in the 
     environmental review process. The lead agency must identify 
     agencies that may have an interest in the project and extend 
     an invitation to participate. The legislation specifically 
     states that designation as a participating agency does not 
     signify support for a project; it is simply a means of 
     identifying the universe of agency participants who must be 
     consulted by the lead agency during the process.
       Subsection (c) establishes a new requirement for a project 
     initiation notice. The purpose of this requirement is to 
     provide an opportunity for the project sponsor to identify 
     the specific highway project, transit project, or multimodal 
     project that is being proposed for evaluation in the 
     environmental review process. At the discretion of the 
     project sponsor, the project initiation notice may include a 
     general description of policies, plans, studies, legislation, 
     or other materials that relate to the proposed project. Such 
     information shall be considered by the lead agency in 
     determining the scope of review needed in the environmental 
     review process, including decisions on issues such as the 
     definition of the proposed action, the purpose and need, the 
     range of alternatives, and the approach to evaluating 
     secondary and cumulative impacts.
       Subsection (d) makes the lead agency responsible for 
     defining the purpose and need, following an opportunity for 
     involvement by other agencies and the public, and identifies 
     the types of objectives that may be included in a statement 
     of purpose and need. The level of involvement required under 
     this section shall be determined by the lead agency on a case 
     by case basis, taking into account the overall size and 
     complexity of the project. The opportunity for involvement in 
     developing the purpose and need may be combined with other 
     public involvement and agency coordination activities, 
     including involvement in developing the range of alternatives 
     to be considered. The lead agency's definition of purpose and 
     need is not binding on other agencies that have independent 
     responsibilities to comply with NEPA. However, other agencies 
     shall show substantial deference to the purpose and need as 
     defined by the lead agency as required under applicable 
     Council on Environmental Quality (CEQ) guidance, dated May 
     12, 2003; nothing in this section shall be construed to limit 
     or override the guidance provided in that memorandum, or to 
     preempt or limit any obligations to comply with the National 
     Environmental Policy Act (NEPA) and the regulations issued to 
     implement NEPA including those issued by CEQ. The list of 
     project objectives provided in this section is not intended 
     to be exhaustive; these are examples

[[Page H7504]]

     of the types of objectives that may be included in a purpose 
     and need statement for a highway, transit, or multimodal 
     project.
       Subsection (e) makes the lead agency responsible for 
     defining the range of alternatives to be considered, 
     following an opportunity for involvement by other agencies 
     and the public. The level of involvement required under this 
     section shall be determined by the lead agency on a case by 
     case basis, taking into account the overall size and 
     complexity of the project. The opportunity for involvement in 
     determining the range of alternatives may be combined with 
     other public involvement and agency coordination activities, 
     including involvement in developing the purpose and need. 
     This section also establishes that the lead agency is 
     responsible for determining the methodologies to be used in 
     evaluating alternatives, and requires that determination to 
     be made in collaboration with the participating agencies. In 
     this context, collaboration means a cooperative and 
     interactive process. It is not necessary for the lead agency 
     to reach consensus with the participating agencies on these 
     issues; the lead agency must work cooperatively with the 
     participating agencies and consider their views, but the 
     lead agency remains responsible for decisionmaking. 
     However, the intent is to require meaningful deliberation 
     about alternatives, as evidenced by the subsection 
     specifying that, should the lead agency develop a 
     preferred alternative, this must not hinder impartial 
     decisionmaking on other alternatives.
       Subsection (f) is intended to establish default comment 
     deadlines that apply in the absence of a specific decision by 
     the lead agency to allow a longer period for comments to be 
     submitted. This section establishes 60 days as the norm for 
     comments on a Draft EIS and 30 days for all other comment/
     review periods. Lead agencies should provide public notice 
     about when a comment period starts and concludes. The 
     legislation allows the lead agency the flexibility to 
     establish a shorter or longer time frame if there is good 
     cause to do so. In addition, this section allows the lead 
     agency to extend the comment deadline at any time in the 
     environmental review process; while it is preferable to 
     establish a realistic schedule as early as possible, this 
     section does not establish a specific point in the process by 
     which time extensions must be granted.
       Subsection (g) establishes a process for identifying and 
     resolving issues that have the potential to delay the 
     environmental review process or prevent an agency from 
     granting a permit or other approval that is needed for a 
     project. The participants in the environmental review process 
     are encouraged to use similar procedures, to the extent 
     practicable, to identify and resolve issues prior to 
     initiation of the environmental review process. Nothing in 
     this section is intended to preclude or limit any ongoing or 
     future efforts by individual States to adopt procedures that 
     call for agency coordination and dispute resolution efforts 
     during the pre-NEPA planning stages of a project.
       Subsection (i) is intended to allow federal highway and 
     transit funds to be provided to other State and Federal 
     agencies to support activities that directly and meaningfully 
     contribute to expediting and improving transportation project 
     delivery. These funds may be used to support activities 
     related to the review of a specific project during the 
     environmental review process, such as reviewing and 
     commenting on environmental documents or attending meetings. 
     These funds also may be used to support activities that 
     contribute to more efficient environmental reviews through 
     early coordination activities prior to initiation of the 
     environmental review (NEPA) process, and also may be used to 
     support activities that contribute to improvements at a 
     programmatic level, such as training of agency personnel, 
     information gathering and mapping, and development of 
     programmatic agreements.
       Sec. 6009.
       This section amends section 5252 of title 49, United States 
     Code, by adding new subsections (j) and (k)
       Subsection 5252(j) provides that, except as set forth under 
     subsection 5252(k), nothing in section 5252 shall affect the 
     reviewability of any final Federal agency action in a court 
     of the United States. A savings clause provides that nothing 
     in section 5252 shall be construed as superseding, amending, 
     or modifying NEPA or any other Federal environmental statute.
       Subsection 5252(k) establishes a 90-day period for filing 
     any lawsuit challenging a permit, license, or approval issued 
     by a federal agency for a highway or transit project. This 
     period starts when the lead agency gives public notice that a 
     final decision has been issued and that a 90-day period for 
     requesting judicial review has begun. This limitation is 
     intended to apply to any permit, license, or approval issued 
     by a state agency acting under authority delegated by a 
     federal agency pursuant to federal law. The purpose of this 
     limitation is to ensure that any claims challenging a highway 
     project for failure to comply with federal law are filed 
     within 90 days after the final agency action that is the 
     subject of the legal challenge.
     Senate Bill
       Sec. 1511.
       Section 1511, subsection (a), creates a new section 326 of 
     title 23, U.S.C., which authorizes the use of and sets forth 
     a process for agencies to prepare environmental review 
     documents, studies, approvals, and permits required by 
     Federal law for approval of a transportation project.
       Section 326(a) defines, for purposes of the section, the 
     terms agency, environmental impact statement, environmental 
     review process, project, project sponsor, and State 
     transportation department. Subsection (b) establishes the 
     Department as the lead agency and allows the process laid out 
     in this section to be used by the lead agency either at the 
     request of the project sponsor or with the concurrence of the 
     project sponsor; (c) lists the responsibilities of the lead 
     agency; and (d) sets out the responsibilities of the 
     cooperating agencies.
       Section 326(e) directs the lead agency to develop a 
     coordination plan, which shall include a workplan and a 
     schedule. Default deadlines are included in the case of the 
     collaborative process failing to establish comment deadlines. 
     Subsections (f) and (g) describe the process for developing 
     the project purpose and need and alternatives, respectively. 
     Current standards are left unchanged, but opportunity for 
     public comment is specifically provided.
       Section 326(h) sets out a process for resolving inter 
     agency disputes that arise during the environmental review 
     process; (i) directs the Secretary to establish a program to 
     measure and report progress toward improving and expediting 
     the planning and National Environmental Policy Act (NEPA) 
     review process; (j) continues authority for the Secretary to 
     provide funds to other agencies to assist them in carrying 
     out the environmental review process for a project; and (k) 
     clarifies that nothing in this section affects judicial 
     review or the applicability of any Federal environmental 
     statutes. Section 1511, subsection (b) repeals section 1309 
     of the Transportation Equity Act for the 21st Century (112 
     Stat. 232). Section 1511(c) clarifies that the repeal of 
     section 1309 of TEA-21 and the enactment of section 1511(a) 
     does not affect any existing State environmental review 
     process, program, agreement or funding arrangement approved 
     by the Secretary under section 1309 of TEA-21.
       Section 1309 of TEA-21 directed the Secretary of 
     Transportation to `develop and implement a coordinated 
     environmental review process for highway construction and 
     mass transit projects.' To date, regulations implementing 
     section 1309 have not been issued. Section 1511 of this 
     legislation replaces section 1309 of TEA-21 and is intended 
     to facilitate faster and more efficient completion of 
     transportation projects without diminishing environmental 
     protections contained in law.
       The process established is for complying with current 
     environmental laws, it does not amend or override any current 
     law. As in TEA-21, agencies are encouraged to conduct their 
     reviews, analyses, and studies concurrently with the review 
     required under the NEPA. Under this process, interested 
     parties will be involved in the earlier stages of the review 
     required under the NEPA.
       The Department, as the lead agency, will be responsible for 
     identifying and inviting cooperating agencies; developing an 
     agency coordination plan, including a workplan and a 
     schedule; and determining the purpose and need of a project 
     and the alternatives to be considered. Whereas current 
     practice involves cooperating agency designations for only 
     those few agencies that will play a major role in reviewing 
     the project, this process expands the meaning of the term to 
     include all agencies that have an interest in or special 
     expertise regarding the project or its potential impacts.
       Public involvement is also enhanced under this process. In 
     addition to leaving unchanged any current opportunities for 
     public comment, this process includes new opportunity for 
     public comment during the determination of project purpose 
     and need and selection of alternatives to be considered.
       Finally, the legislation leaves unchanged the authorization 
     from TEA-21 for States to use their Federal transportation 
     dollars as assistance to resource agencies in order to 
     expedite resource agency activities in the environmental 
     review process.
     Conference Substitute
       The Senate recedes to House section 6002 modified to amend 
     title 23, United States Code, instead of title 49 and with 
     the following further modifications:
       Section 6002(a). The House recedes to the Senate.
       Section 6002(b). The Senate recedes to the House.
       Section 139(a). The Senate recedes to the House. Section 
     139(b). The Senate recedes to the House. In addition, the 
     Conference substitute preserves current regulations under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with regard to agencies acting as Joint Lead Agencies 
     under this section (section 139(c)(2)). The Conference 
     substitute defines the roles and responsibilities of the Lead 
     Agency (section 139(c)). The Conference Substitute requires 
     federal agencies to the maximum extent practicable to carry 
     out concurrent reviews (section 139(d)(7)). The Conference 
     Substitute requires that for the purpose of informing the 
     Secretary that the environmental review process should be 
     initiated, the project sponsor shall notify the Secretary of 
     certain details of the proposed project (section 139(e)). The 
     Conference Substitute requires that a Lead Agency establish a 
     plan for agency participation and comment on the 
     environmental review process that may be incorporated into a 
     memorandum of understanding (section 139(g)). The Conference 
     Substitute permits the Lead Agency to establish a schedule 
     for completion of the environmental review process and 
     requires the

[[Page H7505]]

     consideration of certain factors in establishing the schedule 
     (section 139(g)(1)(B)). The Conference Substitute provides 
     for notice to the United States Senate Committee on 
     Environment and Public Works and the United States House 
     Committee on Transportation and Infrastructure of failure of 
     a Federal agency to make decisions in the environmental 
     review process (section 139(g)(3)). No provisions in this 
     section shall reduce time periods provided under existing 
     Federal law for public comment (section 139(g)(4)). The 
     Conference Substitute provides procedures for issue 
     resolution at the request of a project sponsor or Governor of 
     the state in which the project is located (section 139(h)). 
     The Conference Substitute provides for a program to measure 
     and report on progress toward improving and expediting the 
     environmental review process (section 139(i)). The Conference 
     Substitute adopts a modified version of section 1309(f) of 
     the Transportation Equity Act for the 21st Century (112 Stat. 
     232) to provide that nothing in this section shall affect the 
     reviewability of any final agency action in a court of the 
     United States or the court of any State (section 139(k)). The 
     Conference Substitute establishes a 180-day period for filing 
     any law suit challenging a permit, license or approval issued 
     by a federal agency for a highway or transit project. This 
     period starts when the lead agency gives public notice in the 
     Federal Register that a final decision has been issued 
     (section 139(l)). The Conference Substitute includes the 
     Senate provisions on repeal of section 1309 of TEA-21 and 
     preservation of existing State environmental review 
     processes, programs, agreements or funding arrangements 
     approved by the Secretary under section 1309 of TEA-21.


SECTION 6003. STATE ASSUMPTION OF RESPONSIBILITIES FOR CERTAIN PROGRAMS 
                              AND PROJECTS

     House Bill
       Sec. 1207.
       This section provides the Secretary the authority to 
     conduct a pilot program for up to five states to assume the 
     responsibilities of the Secretary for projects funded under 
     Section 104(h), transportation enhancement activities under 
     Section 133, as defined in Section 101(a)(35), and projects 
     defined in Section 101(a)(38) of title 23, and Section 5607 
     of TEA LU.
     Senate Bill
       No Comparable Provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


   SECTION 6004. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                               EXCLUSIONS

     House Bill
       No Comparable Provision in Senate bill.
     Senate Bill
       Sec. 1512.
       Section 1512 gives the Secretary authority to assign and a 
     State the ability to assume the Secretary's responsibility 
     for processing the environmental review for projects 
     classified as categorical exclusions under current Council on 
     Environmental Quality regulations.
       Categorical exclusions (CEs), according to current Council 
     on Environmental Quality regulations, are projects that `do 
     not individually or cumulatively have a significant effect on 
     the human environment'. Approximately 90% of all surface 
     transportation projects are processed as CEs. So, while CEs 
     take significantly less time to prepare than environmental 
     impact statements, a slight improvement in processing time 
     for each CE can result in a large improvement system wide.
     Conference Substitute
       The Conference adopts the Senate provision.


  SECTION 6005. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT PROGRAM

     House Bill
       No Comparable Provision in Senate bill.
     Senate Bill
       Sec. 1513.
       This section establishes a pilot program for not more than 
     five States to assume the Secretary's responsibility for 
     environmental review for a project. This delegation does not 
     extend to conformity determinations, planning requirements, 
     or rulemaking authority. Delegation of the Secretary's 
     responsibility to a State shall be governed by a written 
     agreement between the Secretary and the State. To ensure 
     compliance by a State, the Secretary shall conduct periodic 
     audits for each State participating in the program. The 
     public shall have opportunity to comment prior to the 
     submission of a State's application to participate in the 
     pilot program and following an audit of compliance with the 
     agreement.
       The legislation includes a 5-State pilot program (including 
     a pilot for the State of Oklahoma) for delegation of certain 
     of the Secretary's environmental review responsibilities for 
     transportation projects within the pilot State. The pilot 
     program is intended to provide information to the committee 
     and to the public as to whether delegation of the Secretary's 
     environmental review responsibilities will result in more 
     efficient environmental reviews that are performed according 
     to the same procedural and substantive requirements as would 
     apply if the Secretary were conducting the reviews.
     Conference Substitute
       The Conference adopts the Senate provision with the 
     addition of California, Texas, Ohio, and Alaska as states 
     participating in the pilot program.


   SECTION 6006. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT; 
CONTROL OF NOXIOUS WEEDS AND AQUATIC NOXIOUS WEEDS AND ESTABLISHMENT OF 
                             NATIVE SPECIES

     House Bill
       No Comparable Provision in House bill.
     Senate Bill
       Sec. 1601.
       This section amends title 23 to establish eligibility for 
     environmental restoration and pollution abatement, and 
     invasive species. The section makes eligible the use of NHS 
     and STP funds for activities under this section.
       Section 165 establishes the eligibility for environmental 
     restoration and pollution abatement and authorizes the use of 
     funds for projects, including retrofitting and construction 
     of stormwater treatment systems to meet Federal and State 
     requirements under sections 410 and 402 of the Federal Water 
     Pollution Control Act, which will address water pollution or 
     environmental degradation caused wholly or partially by a 
     transportation facility. The expenditure of funds is limited 
     to 20 percent of the total cost of an ongoing reconstruction, 
     rehabilitation, resurfacing or restoration project.
       Current law allows a State to use STP funds for 
     environmental restoration and pollution abatement projects 
     (including the retrofit or construction of stormwater 
     treatment systems) to address water pollution or 
     environmental degradation caused or contributed to by 
     transportation facilities. As amended, the use of STP funds 
     is now extended and the use of NHS funds is now authorized 
     for these projects, as well as mitigation projects related to 
     Federal highways but not limited to those currently 
     undergoing reconstruction, rehabilitation, resurfacing or 
     restoration.
       Section 166 establishes provisions for the control of 
     invasive plant species and the establishment of native plant 
     species. Activities carried out under this section must be 
     related to transportation projects funded under Title 23. 
     Activities to control invasive plant species or to establish 
     native species may be carried out in advance, concurrently 
     with, or following project construction. Activities carried 
     out in advance of projects are allowed if such measures are 
     consistent with Federal law and State transportation planning 
     processes.
     Conference Substitute
       The Conference adopts the Senate provision with the 
     following modifications: Invasive species has been changed to 
     noxious weeds and aquatic noxious weeds, as defined in the 
     Plant Protection Act; General activities are the 
     establishment of plants selected by state and local 
     transportation authorities to perform abatement of stormwater 
     runoff, stabilization of soil, or aesthetic enhancement, and 
     management of plants which impair or impede the 
     establishment, maintenance, or safe use of a transportation 
     system. These activities include: (1) right of way surveys to 
     determine management requirements to control noxious weeds, 
     brush or trees considered to be a threat to safety or 
     maintenance of transportation systems; (2) control or 
     elimination of plants; (3) establishment of plants, whether 
     native or non-native with a preference for native when 
     possible; (4) elimination of plants to create fuel breaks for 
     the prevention and control of wildfires; and (5) training.


              SECTION 6007. EXEMPTION OF INTERSTATE SYSTEM

     House Bill
       Sec. 6004.
       This section provides that the Interstate System itself 
     shall not be considered a historic site for purposes of 23 
     U.S.C. Sec. 138 or 49 U.S.C. Sec. 303(c)--the laws commonly 
     known as ``Section 4(f).'' This section allows individual 
     elements of the Interstate System to be considered historic 
     sites for purposes of Section 4(f), if those elements possess 
     an independent feature of historic significance.
     Senate Bill
       Sec. 1604.
       This section establishes an exemption for the Interstate 
     System from consideration under section 303 of title 49 and 
     section 138 of title 23, regardless of whether the Interstate 
     System or portions of the System may be listed on or eligible 
     for the National Register of Historic Places. A portion of 
     the Interstate System that possesses an independent feature 
     of historic significance, such as a bridge or an 
     architectural feature, shall be considered an historic site 
     under section 303 of title 49 and section 138 of title 23, as 
     applicable.
     Conference Substitute
       The Conference adopts the House provision with a technical 
     modification. The language is amended to align the exemption 
     from review under Section 4(f) with the administrative 
     exemption from review under Section 106 of the National 
     Historic Preservation Act, published in the Federal Register 
     on March 10, 2005.


      SECTION 6008. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO 
                    TRANSPORTATION PROJECT PLANNING

     House Bill
       No Comparable Provision in House bill.

[[Page H7506]]

     Senate Bill
       Sec. 1503.
       This section amends 23 U.S.C. 109(c) to direct the 
     Secretary to consider two documents regarding context 
     sensitive design when developing criteria for project design. 
     The current provision for consideration of `A Policy on 
     Geometric Design of Highways and Streets' is retained.
       Context sensitive design involves consideration of the 
     environmental context of a project and encourages design that 
     minimizes impacts on the project's surroundings. Adding 
     context sensitive design principles to the current design 
     criteria will give transportation officials the flexibility 
     to adjust to the characteristics of each specific location 
     while still ensuring sound engineering and safety measures.
       Sec. 1605.
       This section amends section 109(p) of title 23, Standards. 
     The change is made to place greater emphasis on the need to 
     consider preservation of human and natural resources as a 
     part of the decisionmaking process in developing highway 
     projects.
       Consideration of the impacts of highway projects has been 
     part of the design process for many years. However, the 
     transportation community, the traveling public, and 
     communities have demanded improvements in project delivery 
     and in the make-up of the product that is delivered. 
     Compatibility with the surrounding context, or environment, 
     and improved safety for the motorist and the pedestrian are 
     critical. The changes to this section address the need to see 
     that highway projects meet all of these goals by having a 
     project sponsor consider community preservation and community 
     concerns.
     Conference Substitute
       The Conference adopts the Senate amendment to section 
     109(c) of title 23, United States Code, but not the amendment 
     to section 109(p).


SECTION 6009. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL REFUGES, 
                           AND HISTORIC SITES

     House Bill
       Sec. 6003.
       This section amends section 303 of title 49 and section 138 
     of title 23 to provide that requirements under such 
     section(s) are deemed to be satisfied if an agreement under 
     section 106 of the National Historic Preservation Act 
     concludes that a transportation program or project will not 
     have an adverse effect on an historic site, unless the 
     Advisory Council on Historic Preservation determines that 
     using the section 106 consultation procedure to satisfy the 
     requirements of such sections is inconsistent with the 
     objectives of such Act. This section applies only to historic 
     sites. In any case in which an historic site subject to 
     section 106 includes, or is a part of a park, recreation 
     area, or wildlife and waterfowl refuge protected under the 
     sections cited above, this provision shall not apply to such 
     parks, recreation areas or refuges.
     Senate Bill
       Sec. 1514.
       Section 1514, subsection (a) amends section 138 of title 23 
     and section 303 of title 49, United States Code, to allow 
     transportation programs and projects to move forward as long 
     as the impacts are no more than de minimis impacts on 
     protected parks, recreation areas, wildlife or waterfowl 
     refuges and historic sites.
       Subsection (b) directs the Secretary to promulgate within 
     one year of enactment regulations to clarify the factors to 
     be considered and the standards to be applied in determining 
     the prudence and feasibility of alternatives under section 
     138 of title 23 and section 303 of title 49, United States 
     Code.
       Subsection (c) requires the Secretary and the 
     Transportation Board of the National Academy of Sciences 
     jointly to conduct a study on the implementation of the 
     amended sections.
       The Department of Transportation Act of 1966 prohibited the 
     approval of any transportation program or project that 
     requires the use of public parks, recreation areas, wildlife 
     or waterfowl refuges or public or private historic sites 
     unless there are no prudent and feasible alternatives and the 
     program or project includes all possible planning to minimize 
     harm to these protected resources (this provision is commonly 
     referred to as `section 4(f)').
       Subsection 1514(a) provides that section 4(f) requirements 
     are satisfied if the program or project will have only a de 
     minimis impact on the area. For historic sites, a finding of 
     de minimis impact may only occur if: (1) through the 
     consultative process under section 106 of the National 
     Historic Preservation Act (16 U.S.C. 470(f)), the Secretary 
     determines that the program or project will have no adverse 
     impact on the historic site or that there will be no historic 
     properties affected; (2) the applicable State or tribal 
     historic preservation officer provides written concurrence 
     with the Secretary's determination; and (3) the finding is 
     developed in consultation with consulting parties under the 
     section 106 process.
       For parks, recreation areas, and wildlife and waterfowl 
     refuges, a finding of de minimis impact may only occur if: 
     (1) through review required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Secretary 
     determines that the program or project will not adversely 
     affect the activities, features, and attributes of the park, 
     recreation area, or wildlife or waterfowl refuge eligible for 
     protection under section 4(f); and (2) the official(s) with 
     jurisdiction over the protected resource concurs with the 
     Secretary's finding. The purpose of the language is to 
     clarify that the portions of the resource important to 
     protect, such as playground equipment at a public park, 
     should be distinguished from areas such as parking 
     facilities. While a minor but adverse effect on the use of 
     playground equipment should not be considered a de minimis 
     impact under section 4(f), encroachment on the parking lot 
     may be deemed de minimis, as long as the public's ability to 
     access and use the site is not reduced.
       This subsection also provides that for all section 4(f)-
     protected resources, the Secretary shall consider any 
     avoidance, minimization, mitigation or enhancement measures 
     required to be implemented as a condition for approval of the 
     program or project when determining if the project will have 
     a de minimis impact. This language builds in an incentive for 
     project sponsors to incorporate environmentally protective 
     measures into a project from the beginning. The traditional 
     section 4(f) requirements will apply to all projects with 
     impacts that exceed the de minimis threshold even when 
     mitigation measures are taken into account.
       In its decision in Citizens to Preserve Overton Park v. 
     Volpe, 401 U.S. 402 (1971), the Supreme Court ruled that 
     determinations on no feasible and prudent alternatives must 
     find that there are unique problems or unusual factors 
     involved in the use of alternatives or that the cost, 
     environmental impacts, or community disruption resulting from 
     such alternatives reach extraordinary magnitudes.
       In order to address inconsistent guidance and regional 
     interpretations of the Overton Park decision, subsection 
     1514(b) directs the Secretary to issue regulations to clarify 
     the factors to be considered and the standards to be applied 
     in determining whether alternatives are `prudent and 
     feasible' under section 138 of title 23 and section 303 of 
     title 49, United States Code. The fundamental legal standard 
     contained in the Overton Park decision for evaluating the 
     prudence and feasibility of avoidance alternatives will 
     remain as the legal authority for these regulations, however, 
     the Secretary will be able to provide more detailed guidance 
     on applying these standards on a case-by-case basis.
       Subsection 1514(c) requires a study of the implementation 
     of section 4(f) as amended. The study shall include 
     evaluation of items such as any efficiencies resulting from 
     the amendments of this section; the post-construction 
     effectiveness of impact mitigation and avoidance commitments 
     adopted; and the quantity of projects with de minimis impacts 
     and information on the location, size and costs of the 
     projects.
     Conference Substitute
       The Conference adopts the Senate provision with two 
     modifications. First the language is modified so that a de 
     minimus determination with respect to a park, recreation area 
     or wildlife or waterfowl refuge satisfies the current law 
     requirement that there is no prudent and feasible 
     alternative, but the requirement to do all possible planning 
     to minimize harm to the area is retained. Compliance with 
     that requirement, however, shall not include an analysis of 
     alternatives. The second modification requires an opportunity 
     for public notice and comment prior to a de minimis 
     determination for parks, recreation areas and wildlife and 
     waterfowl refuges.


     SECTION 6010. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT SUPPORT 
            DEPLOYMENT OF INTELLIGENT TRANSPORTATION SYSTEMS

     House Bill
       Sec. 1206.
       This section requires the Secretary to conduct a rulemaking 
     within one year to establish categorical exclusions, to the 
     extent appropriate, for activities that support the 
     deployment of ITS from the requirement that an environmental 
     assessment or an environmental impact statement be prepared 
     under NEPA, in compliance with the standards for categorical 
     exclusions established by NEPA.
       The Secretary shall also develop a nationwide programmatic 
     agreement governing the review of activities that support ITS 
     deployment in accordance with the National Historic 
     Preservation Act. The agreement will be developed in 
     consultation with the National Conference of State Historic 
     Preservation Officers and the Advisory Council on Historic 
     Preservation.
     Senate Bill
       No Comparable Provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                SECTION 6011. TRANSPORTATION CONFORMITY

     House Bill
       Sec. 1824.
       Section 1824 of H.R. 3 contains changes to the conformity 
     provisions in section 176(c) of the Clean Air Act. The 
     changes, which are discussed more fully below, address the 
     following subjects: (1) frequency of conformity 
     determinations; (2) changes to time horizons; (3) 
     substitution of transportation control measures; and (4) 
     conformity lapses.
       Frequency: Subsections (a) and (b) of Section 1824 change 
     the frequency of conformity determinations for both the 
     Transportation Improvement Plan (TIP) and the long range 
     Regional Transportation Plan (RTP). Under these subsections, 
     a conformity determination would now be required for both the 
     TIP

[[Page H7507]]

     and the RTP only once every four years (Sec. 1824(b)). In the 
     event that a new motor vehicle emissions budget is found to 
     be adequate (as submitted during a State Implementation Plan 
     (SIP) revision process), or is finally approved as part of a 
     revised or new SIP, a conformity determination would be 
     required within two years of such a finding or approval 
     (Section 1824(a)). In addition, subsection (b) allows an area 
     to update its conformity determination more frequently, if it 
     so desires.
       Conformity Horizon: Subsection (c) of section 1824 
     addresses the conformity time horizon for RTPs. The time 
     horizon is the period for which conformity must be 
     demonstrated. Under current law this time horizon period is 
     20 years (or longer if the general RTP planning horizon is 
     longer). Under this proposed subsection, an area may elect to 
     reduce its time horizon for its RTP from 20 years to 10 
     years, but may do so only with the agreement of the MPO and 
     the relevant Air Pollution Control Agency (APCA), as defined 
     in section 302(b) of the Clean Air Act. In the event, 
     however, that the attainment date in the SIP is more than 10 
     years away, or the date of completion of a regionally 
     significant project is more than 10 years away, then the 
     horizon date must be the later of those two dates. In cases 
     where the SIP is revised to include adequate or approved 
     motor vehicle emissions budget, and the SIP has an attainment 
     date earlier than 10 years, the horizon may be revised to 
     reflect that earlier date, but again, only with the agreement 
     of the MPO and APCA.
       In any event, under subsection (b) a regional emissions 
     analysis is required for any years of the transportation plan 
     that extend beyond the conformity time horizon. Thus if the 
     RTP general horizon is 20 years (as is common) and the 
     conformity horizon is reduced to 10 years, a regional 
     emissions analysis is nevertheless required for the 10-to-20 
     year period. Generating this information will be helpful in 
     ensuring that conformity is maintained.
       TCMs: Subsection (d) of section 1824 allows substitution of 
     ``Transportation Control Measures'' (TCMs) in a SIP, without 
     going through a full SIP approval process or a new conformity 
     determination, so long as the substituted TCM achieves an 
     equivalent or greater emissions reduction than the TCM it 
     replaces. EPA would determine whether a TCM meets that test. 
     In addition, appropriate methodology would need to be used to 
     determine emissions impact, reasonable public notice would be 
     required, and adequate funding would be required. Finally, 
     there is no requirement that a state change its SIP for TCM 
     substitution, as indicated in the legislative language of the 
     bill with the use of ``may'' rather than ``shall.''
       Conformity Lapse Grace Period: Subsection (e) of section 
     1824 adds a new one-year grace period of 12 months before a 
     conformity lapse shall be considered to exist and the 
     consequences of a conformity lapse shall apply. A lapse is 
     defined as in current regulations. Under this provision, when 
     a nonattainment or maintenance area fails to make a 
     conformity determination by an applicable deadline, it will 
     have 12 months to make such determination. During the 12-
     month grace period, only transportation projects in the most 
     recent conforming plan and TIP could be funded or approved 
     until the required determinations are made pursuant to 
     Section 176(c) of the Clean Air Act.
     Senate Bill
       Sec. 1615.
       This section changes how often updates must be made to 
     metropolitan transportation plans and metropolitan 
     transportation improvement programs (TIPs) in nonattainment 
     and maintenance areas, and statewide TIPs. Currently, these 
     documents expire every 3 years, 2 years, and 3 years, 
     respectively. With this bill, all three of these planning 
     documents must be updated every 4 years unless a metropolitan 
     planning organization elects to update its transportation 
     improvement plan more frequently. This section also changes 
     the minimum frequency with which transportation conformity 
     must be demonstrated to every 4 years. Other changes to 
     transportation conformity include a change in the horizon of 
     the conformity determination, and a change in the projects to 
     which conformity applies. In addition, this section adds a 
     requirement for EPA's conformity regulations.
       Frequency. Section 1615 amends 23 U.S.C. 134 to require 
     that metropolitan transportation plans and metropolitan 
     transportation improvement programs (TIPs) be updated every 4 
     years in nonattainment and maintenance areas, unless a 
     metropolitan planning organization elects to update its 
     transportation improvement plan more frequently. Currently, 
     plans must be updated every 3 years, but TIPs must be updated 
     every 2 years. Attainment areas will continue to update 
     transportation plans every five years. Section 135 is also 
     amended to require that statewide TIPs be updated at least 
     every 4 years, to be consistent with metropolitan plans 
     and TIPs. The section also amends section 176 of title 42, 
     the conformity section of the Clean Air Act, to require 
     that conformity for transportation plans and TIPs be 
     determined every 4 years, unless an MPO elects to update 
     their plan or TIP more frequently, or conformity is 
     triggered by an EPA action on a SIP submission. In the 
     case where conformity is triggered by an EPA SIP action, 
     this section provides metropolitan areas with 2 years to 
     determine conformity (currently, areas have 18 months).
       The committee recognizes that there may be value to 
     transportation planners in placing the frequency of 
     metropolitan transportation plan and TIP updates and the 
     frequency of conformity determinations on the same timetable, 
     and also recognizes the benefit of giving metropolitan areas 
     more time to devote to planning. The current transportation 
     law requires TIPs to be updated at least every 2 years, and 
     current planning regulations require plans to be updated 
     every 3 years. Because conformity must be determined before 
     new TIPs or new plans are adopted, many metropolitan areas 
     were starting another TIP update as soon as transportation 
     planning and conformity requirements were met for the 
     previous one. Some witnesses testifying before the committee 
     has indicated that transportation planning will improve if 
     metropolitan areas have more time to devote to it, rather 
     than continuously creating TIP updates and determining their 
     conformity. Because conformity must still be determined 
     before an updated plan or TIP is adopted, air quality should 
     not be affected by this change; air quality impacts will 
     still be checked before any major changes to the 
     transportation network are made.
       Horizon. The section also changes the horizon of the 
     conformity determination, that is, how far into the future 
     each conformity determination must examine. Currently, a 
     conformity determination is made analyzing a 20 year period 
     of time, which is the length of time covered by a 
     transportation plan. This section changes the horizon of a 
     conformity determination to be the longest of 10 years, the 
     latest year a State air quality plan (State implementation 
     plan, or SIP) establishes a budget, or the year after a 
     regionally significant project is completed if the project 
     requires approval before the next conformity determination.
       Conformity must marry two separate planning activities: 
     transportation planning, and air quality planning. While 
     transportation plans cover a period of 20 years, SIPs, which 
     are used as the measure of conformity, generally cover a 
     period of 10 years or fewer. The committee is changing the 
     horizon of the conformity determination so that it more 
     closely matches the length of time covered by a SIP. In 
     addition, the language also ensures that the emissions 
     impacts of large projects on travel are considered before 
     Federal approvals are made. The change made to the horizon 
     does not preclude State or local agencies from examining 
     longer time periods for informational or local air quality 
     purposes, if they choose to do so.
       Projects. The section defines transportation project to 
     include only a project that is regionally significant, or a 
     project that makes a significant revision to an existing 
     project. The definition of regionally significant project 
     closely tracks the existing EPA definition in regulation. 
     Likewise, the definition of significant revision tracks the 
     existing EPA criteria for significant change in design 
     concept or scope. With the addition of this definition for 
     transportation project, conformity determinations are 
     required for regionally significant projects or projects that 
     make a significant revision to an existing project, rather 
     than for every Federal project. However, this change does not 
     affect the requirement that the emissions impacts from all 
     projects in the transportation plan and TIP must be 
     considered when determining conformity of a plan or TIP. VMT 
     from projects that are not regionally significant must still 
     be considered in a plan or TIP conformity determination.
       Requirement for Regulation. This section adds a new 
     requirement that EPA's regulations must address the effects 
     of the most recent population, economic, employment, travel, 
     transit ridership, congestion, and induced travel demand 
     information in the development and application of the latest 
     travel models. That is, this section requires that EPA adjust 
     regulations to ensure that travel models can account for the 
     effects of these elements. Currently, travel models can 
     account for the effects of most of the elements on this list, 
     because the Clean Air Act has required that conformity be 
     based on the most recent estimates of emissions since 1990, 
     and EPA's conformity regulations specify how latest 
     information regarding population, employment, travel, 
     congestion, and transit service must be incorporated into a 
     conformity determination.
       The new elements on this list are induced travel demand and 
     transit ridership information. The committee recognizes that 
     induced demand is a concept that is relatively recent and has 
     been the subject of some debate. Before changing regulations 
     in response to this section, EPA should examine the recent 
     literature regarding induced demand, including papers on the 
     topic submitted to the Transportation Research Board within 
     the last 6 years. Recent literature should inform EPA's 
     proposal on where, when, and how induced demand should be 
     included in travel models. If recent literature does not 
     include recommendations for how to incorporate induced demand 
     into travel modeling, then EPA should request input on this 
     topic from the public and the expert community prior to 
     proposing its regulations.
       Sec. 1617.
       Section 1617 reduces barriers to regions implementing 
     transportation control measures (TCMs) to improve their 
     regional air quality. The section allows an area to 
     substitute an existing TCM or add a TCM if they can show that 
     the new TCM will achieve equivalent or greater emissions 
     reductions. Substitution

[[Page H7508]]

     or addition of a TCM will not require express permission in 
     the State air quality plan (SIP), a formal revision of the 
     SIP, nor a new conformity determination.
       Transportation control measures, or TCMs, are 
     transportation-related measures that have the potential to 
     reduce emissions of criteria pollutants. Many TCMs reduce 
     emissions by reducing VMT, for example, high-occupancy 
     vehicle lanes, transit projects, park and ride lots, ride-
     share programs, and pedestrian and bicycle facilities. States 
     can include TCMs in their SIPs. However, unless the SIP 
     includes a TCM substitution mechanism, i.e., a set of 
     provisions for substituting TCMs, the SIP must be revised to 
     change a TCM that is delayed or no longer viable. The purpose 
     of this section is to allow all States to substitute TCMs 
     without a full SIP revision, regardless of whether the State 
     has its own substitution mechanism.
       TCMs can be substituted if the substitute measure achieves 
     the same or greater emission reductions as the measure being 
     replaced, based on an analysis that uses the latest planning 
     assumptions and the current models. The substitute TCMs must 
     be implemented on the same schedule as the original measure, 
     if that is possible. However, the committee recognizes that 
     it may not be possible for the substitute measure to be on 
     the original schedule; for example, a possible reason that a 
     State would want to substitute a TCM is that it has proved 
     difficult to implement in a timely way. In those cases, the 
     substitute measure must be implemented as soon as 
     practicable, but not later than the date on which the SIP is 
     supposed to achieve its purpose. For example, if the TCM is 
     included in the SIP as part of the attainment demonstration, 
     and the attainment date is 2005, the substitute TCM must be 
     implemented as soon as practicable to reduce emissions by 
     2005.
       Subparagraph (B) of this provision states that after 
     carrying out subparagraph (A), a State shall adopt the 
     substitute or additional control measure in the applicable 
     SIP. In this instance, the committee has used the word 
     `adopt' to mean that the State must record the measure as 
     being part of the SIP. The sole intent of this subparagraph 
     is to ensure that the State keeps an up-to-date list of the 
     TCMs that must be implemented, so that a member of the public 
     can review the list at any point and have the complete, 
     correct list of TCMs that are in the SIP. This subparagraph 
     is not intended to create any additional process requirements 
     than those in subparagraph (A).
       Sec. 1616.
       Section 1616 provides methods for new nonattainment areas 
     to use in determining transportation conformity to help 
     achieve the national ambient air quality standards. Many 
     areas will soon be designated nonattainment with the revised 
     national ambient air quality standards for ozone (the 8-hour 
     standard) and fine particulate matter (PM-2.5). In the case 
     of areas that have not been in nonattainment before and have 
     not been required to demonstrate transportation conformity or 
     develop an emissions budget to use in that demonstration, or 
     in the event that the agency revokes a prior standard before 
     new nonattainment areas have approved emissions budgets for a 
     revised standards, the committee has provided that those 
     areas would be able to use an emissions budget in a SIP for 
     the prior standard for the same pollutant, if one is 
     available. Areas could also use the other tests that are 
     currently available in cases where an area does not have a 
     SIP.
       This section is added because EPA designated areas for the 
     new 8-hour ozone standard in April 2004, and made 
     designations for the fine particulate matter standard (PM-
     2.5) in December 2004. Newly designated nonattainment areas 
     that have not been previously designated nonattainment for 
     the same pollutant will have a 1-year grace period before 
     conformity applies, but they have 3 years to submit SIPs to 
     EPA. SIPs include motor vehicle emissions budgets, which are 
     the total amount of each pollutant or precursor that is 
     allowable for the transportation sector. These budgets 
     serve as the measure of comparison when determining 
     conformity. Therefore, after areas are designated for an 
     air quality standard, there will be a period of time when 
     other means of determining conformity must be used.
       This section will allow areas that have been designated for 
     the new 8-hour ozone standard to use the motor vehicle 
     emissions budget from their 1-hour ozone SIP, if it exists, 
     even once EPA revokes the 1-hour standard. Rather than 
     referring specifically to the 8-hour and 1-hour ozone 
     standards, this section is written broadly to refer to any 
     standards. The committee recognizes that EPA, from time to 
     time, may revise air quality standards. Areas should be able 
     to use the budgets from the SIP that addresses the most 
     recent prior standard of the same pollutant, if one exists 
     and EPA has found its budgets adequate or has approved the 
     SIP.
       The committee did not mandate the use of the budgets from a 
     SIP for the most recent prior standard, but instead gave 
     areas the choice to do so, or use the existing tests. There 
     may be instances where the budget from a SIP addressing the 
     prior standard would not provide a good test of conformity. 
     For example, such a budget could be established for a year 
     that is many years in the past, be based on a geographic 
     boundary that is different than the boundary for the current 
     standard, or be based on information that is significantly 
     out-of-date. For these reasons, the committee believes it is 
     important to provide a choice to areas. Areas will use the 
     consultation process to determine whether budgets addressing 
     a prior standard for the same pollutant or another test or 
     tests, will be used for conformity.
       Sec. 1619.
       Section 1619 updates the language in section 176 of title 
     42 that directs EPA to write regulations. It removes 
     references to the date of enactment of the Clean Air Act 
     Amendments of 1990. It also removes the requirement for 
     States to duplicate the entire text of Federal conformity 
     regulations in their State implementation plans each time 
     there is a revision in those regulations. Instead, States 
     will be required to further amend their State implementation 
     plans only when revising conformity consultation procedures.
       Current law requires that States submit criteria and 
     procedures for assessing conformity of transportation plans, 
     TIPs, and projects. This requirement results in States having 
     to adopt the entire Federal conformity rule into their State 
     implementation plans (SIPs). States that have done so must 
     update their SIP whenever EPA updates any portion of the 
     conformity regulations, which EPA has done several times 
     since promulgating the initial rule in 1993, most recently in 
     2000, 2002 and 2004. However, only the consultation 
     procedures that exist in the regulations need to be tailored 
     to individual States. This change ensures that States must 
     submit consultation procedures, but no longer have to repeat 
     the entire Federal conformity regulations. This change will 
     reduce the paperwork burden on States with no adverse air 
     quality impact.
     Conference Substitute
       Frequency: The Conference agrees to a modified version of 
     the Senate provision. The Senate provision is modified to 
     clarify that the two-year clock for re-determining conformity 
     after the approval of new emissions budgets only starts if 
     those emissions budgets had not previously been found 
     adequate.
       Horizon: The Conference adopts the Senate provision with 
     modifications. First, the change in horizon will be at the 
     election of the metropolitan planning organization, after 
     consultation with the appropriate air pollution control 
     agency and with a period for public comment. The decision to 
     address a portion of the transportation plan rather than the 
     entire 20-year plan when demonstrating conformity only needs 
     to be made once, not each time a conformity determination is 
     made. After such election, each conformity determination will 
     address the longest of the three periods at that point in 
     time. For example, the first conformity determination 
     following such election may address 10 years of the 
     transportation plan, but the second may need to address 15 
     years because the new plan includes a regionally significant 
     project in later years of the plan. The Conference also 
     requires a conformity determination to include an 
     informational regional emissions analysis for the last year 
     of the transportation plan and any year shown to exceed 
     emissions budgets by a prior informational regional emissions 
     analysis if such year extends beyond the conformity date.
       Projects: The Conference does not adopt the Senate 
     provision.
       Conformity Lapse: The Conference adopts the House language.
       TCM Substitution: The Conference agrees to a modified 
     version of the Senate provision. The Conference clarifies the 
     meaning of ``adoption.'' Specifically, adoption occurs when 
     the MPO, state air agency and EPA concur that all four of the 
     general requirements in subparagraph (A) of the provision 
     have been fulfilled. At that point the substitute TCM becomes 
     part of the SIP and federally enforceable. The state air 
     agency is directed to send the substitute measure to EPA 
     within 90 days of adoption so that EPA may proceed with 
     incorporating the substitute measure into the codified SIP. 
     This action does not require any additional state process. 
     The conference also clarifies that evidence of adequate 
     funding for the implementation of the substitute TCM must be 
     provided.
       Requirements for Regulations: The Conference does not adopt 
     the Senate provision, but agrees to replace it with a 
     requirement in the Research title requiring the Federal 
     Highways Administration to address induced travel demand and 
     transit ridership in the development of the TRANSIMS 
     transportation model and to assist state and local 
     governments in using TRANSIMS to estimate the impact of these 
     factors when areas make conformity determinations, where 
     applicable.
       Transition to New Air Quality Standards: The Conference 
     does not adopt the Senate provision.
       Conforming Amendments: The Conference agrees to a modified 
     version of the Senate provision. The Conference clarifies 
     that states are required to incorporate three provisions from 
     the federal conformity rule into their SIPs. The three 
     provisions are related to consultation and enforcement and 
     enforceability of commitments for emission reduction or 
     mitigation measures. These are the only three provisions in 
     the federal conformity rule that states are allowed to tailor 
     when they incorporate conformity requirements into their 
     SIPs.
       Regulations: The Conference includes a provision requiring 
     EPA to revise the conformity rule within two years of the 
     enactment of the bill.

[[Page H7509]]

                 SECTION 6012. FEDERAL REFERENCE METHOD

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 1610.
       This section directs EPA to conduct a study of the ability 
     of monitors to differentiate particulate matter larger than 
     2.5 micrometers in diameter (coarse particulate matter). EPA 
     is also directed to develop a method to measure directly the 
     amount and composition of coarse particulate matter.
       This section directs EPA to conduct a study of the ability 
     of monitors to differentiate particulate matter larger than 
     2.5 micrometers in diameter (coarse particulate matter). This 
     study will give policymakers and the agency a better 
     understanding of the difficulties involved in distinguishing 
     particles that are smaller than 2.5 micrometers in size from 
     those that are larger. This knowledge will assist 
     policymakers by minimizing the potential of measurements to 
     either inflate or deflate the quantity of smaller particles, 
     or to inflate or deflate the quantity of larger particles.
       EPA is also directed to develop a method to measure 
     directly the amount and composition of coarse particulate 
     matter. This will ensure that EPA has the tools necessary so 
     that it does not need to rely on a methodology for measuring 
     coarse particles (2.5 to 10 microns in size) by measuring all 
     particles (up to 10 microns in size) and subtracting fine 
     particles (2.5 microns or less in size), as this subtraction 
     method may increase the probability of measurement error. EPA 
     is also directed to develop a method to measure different 
     kinds of particles. By developing the ability to measure 
     different types, or so-called ``species'' of particles, the 
     agency will be able to better identify those particles that 
     constitute the particles of greater concern and to identify 
     the point of origin of the emissions for purposes of 
     modeling.
     Conference Substitute
       The Conference adopts the Senate provision.


  SECTION 6013. AIR QUALITY MONITORING DATA INFLUENCED BY EXCEPTIONAL 
                                 EVENTS

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 1618.
       Section 1618 requires EPA to promulgate regulations 
     governing the handling of air quality monitoring data 
     influenced by exceptional events. These regulations would 
     allow governors to petition EPA to exclude air quality data 
     directly due to exceptional events. Events such as forest 
     fires or volcanic eruptions, should not influence whether a 
     region is meeting its Federal air quality goals. The section 
     includes requirements for demonstrating the occurrence of 
     such a natural event by reliable and accurate data, a clear 
     causal relationship between the exceptional event and a 
     national air quality standard exceedance, and a public 
     process for the determination.
       This section includes a definition of exceptional events 
     and excludes certain events from the definition. Natural 
     climatological occurrences such as stagnant air masses, high 
     temperatures, or lack of precipitation influence pollutant 
     behavior but do not themselves create pollutants. Thus, they 
     are not considered exceptional events. Likewise, air 
     pollution related to source noncompliance may not be 
     considered an exceptional event. In contrast, events which 
     are part of natural ecological processes, which generate 
     pollutants themselves that cannot be controlled, qualify as 
     exceptional events.
       The committee is concerned that the Environmental 
     Protection Agency's (EPA's) current approach for modeling 
     carbon monoxide (CO) emissions from motor vehicles may not be 
     appropriate for cold weather States, such as Alaska, that 
     must make CO attainment and maintenance demonstrations. The 
     committee therefore requests that EPA evaluate the 
     effectiveness of its MOBLIE6 model to determine if it 
     adequately accounts for the effects of cold weather on CO 
     emissions.
       EPA is directed to follow principles in promulgating 
     regulations under this section. These principles reflect the 
     requirements of the current Clean Air Act and do not 
     establish new requirements for States or EPA to meet. 
     Instead, these are principles that EPA must follow when 
     promulgating regulations under this section.
     Conference Substitute
       The Conference adopts the Senate provision.


         SECTION 6014. FEDERAL PROCUREMENT OF RECYCLED COOLANT

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       This section directs the President to conduct, within 90 
     days of enactment of this Act, a review of Federal 
     procurement policy of off-site recycled coolant, taking into 
     consideration processes that are energy efficient, generate 
     no hazardous waste, produce no emissions of air pollutants, 
     present lower health and safety risks to employees at the 
     plant or facility and recover at least 97 percent of the 
     glycols from used antifreeze feedstock.
     Conference Substitute
       The Conference adopts the Senate provision with a 
     correction to delete ``off-site''.


                 SECTION 6015. CLEAN SCHOOL BUS PROGRAM

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 1622.
       Section 1622 establishes a statutory program to authorize 
     funds to assist localities seeking to reduce emissions from 
     existing school buses. The legislation requires EPA to award 
     grants to replace pre-1977 school buses and retrofit post-
     1990 school buses, and when appropriate, purchase alternative 
     fuels.
     Conference Substitute
       The Conference adopts the Senate provision with a 
     modification to clarify that the awarding of grants for the 
     purchase of alternative fuel should be consistent with the 
     historic funding levels of the program for such purchase.


                   SECTION 6016. SPECIAL DESIGNATION

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 1704
       This section directs that the city of Norman, Oklahoma, 
     shall be considered to be part of the Oklahoma City urbanized 
     area for the purpose of any applicable program under title 
     23, United States Code.
     Conference Substitute
       The Conference adopts the Senate provision.


SECTION 6017. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
      FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 4001.
       The section amends Subtitle F of the Solid Waste Disposal 
     Act (42 U.S.C. et seq) to direct the EPA and each agency head 
     to implement procurement requirements and incentives that 
     provide for the use of cement and concrete incorporating 
     recovered mineral component in cement or concrete projects. 
     Priority is to be given to achieving greater use of recovered 
     mineral components in cement or concrete projects for which 
     recovered mineral components historically have not been used 
     or have been used minimally.
     Conference Substitute
       The Conference adopts the Senate provision with a 
     modification to exclude lead slag and lead slag aggregate 
     from the definition of ``recovered mineral component''.


              SECTION 6018. USE OF GRANULAR MINE TAILINGS

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 4002.
       This section amends the Solid Waste Disposal to require the 
     Administrator of the Environmental Protection Agency and each 
     agency head to take necessary actions to implement fully all 
     procurement requirements and incentives that provide for the 
     use of cement and concrete incorporating recovered mineral 
     component in cement or concrete projects. An agency head is 
     required to give priority to achieving greater use of 
     recovered mineral component for which it has not been 
     historically used or used minimally. This section also 
     requires the Administrator, in cooperation with the 
     Secretaries of Transportation and Energy, to conduct a study 
     to determine the extent to which current procurement 
     requirements may realize energy savings and environmental 
     benefits attainable with the substitution of recovered 
     mineral component in cement used in cement or concrete 
     projects. Additionally, this section requires the 
     Administrator, in consultation with other agency heads, to 
     establish criteria for the safe and environmentally 
     protective use of granular mine tailings from the Tar Creek, 
     Oklahoma Mining District, known as `chat', for cement or 
     concrete projects, and transportation projects, including 
     those that use asphalt, that are carried out using Federal 
     funds. In establishing the criteria, the Administrator is 
     required to consider current and previous uses of `chat,' and 
     any environmental and public health risks and benefits 
     derived from removal, transportation and use of `chat.'
     Conference Substitute
       The Conference adopts the Senate provision.

             TITLE VII--HAZARDOUS MATERIALS TRANSPORTATION


                         SEC. 7001. SHORT TITLE

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7301.
       This section provides the Short Title.
     Conference Substitute
       The Conference adopts the Senate provision.


          SEC. 7002. AMENDMENT OF TITLE 49, UNITED STATES CODE

     House Bill
       Sec. 7001.
       This section establishes that any reference to a section or 
     other provision shall be considered a section or provision of 
     title 49, United States Code, unless otherwise specified.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.

[[Page H7510]]

    Subtitle A--General Authorities on Transportation of Hazardous 
                               Materials


                    SEC. 7101. FINDINGS AND PURPOSE

     House Bill
       Sec. 7002.
       This section establishes the Congressional findings of the 
     hazardous materials title, and updates and clarifies the 
     purpose of chapter 51.
     Senate Bill
       Sec. 7301.
       This section contains the short title and table of 
     contents.
       Sec. 7321.
       This section provides the purpose of the Hazmat Title.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications.


                         SEC. 7102. DEFINITIONS

     House Bill
       Sec. 7003.
       This section modifies the definition of ``commerce'' to 
     include transportation on a U.S.-registered aircraft anywhere 
     in the world. This section also defines the term 
     ``Secretary'' as the Secretary of Transportation, except 
     where otherwise indicated.
     Senate Bill
       Sec. 7322.
       This section modifies definitions as indicated below.
       The definition of ``commerce'' is amended to provide 
     jurisdiction over hazardous materials activities being 
     conducted on a U.S.-registered aircraft anywhere in the 
     world. The purpose of this proposed provision is to clarify 
     that DOT has the authority, under Federal hazardous materials 
     transportation law (49 U.S.C. 5101-5127), to regulate 
     hazardous materials transportation on all U.S.-registered 
     aircraft.
       The definitions of ``hazmat employee'' and ``hazmat 
     employer'' is amended to clarify that the terms include the 
     self-employed, including owner-operators of motor vehicles, 
     vessels or aircraft, and temporary or part time employees.
       The definition of ``motor carrier'' would be amended by 
     clarifying that it includes a freight forwarder, as defined 
     in 49 U.S.C. 13102, only if the freight forwarder is 
     performing a function related to highway transportation. In 
     addition, the definition of ``imminent hazard'' is further 
     clarified.
       Finally, the definition of ``person'' is amended so that 
     the requirements of chapter 51 apply to additional activities 
     of government agencies and Indian tribes, and includes those 
     that design, manufacture, fabricate, inspect, mark, maintain, 
     recondition, repair, or test a package, container, or 
     packaging component for use in the transportation of 
     hazardous materials in commerce.
     Conference Substitute
       The Conference adopts the Senate provision.


                SEC. 7103. GENERAL REGULATORY AUTHORITY

     House Bill
       Sec. 7004.
       This section updates the terminology used to describe the 
     materials the Secretary should designate as hazardous, as 
     well as the terminology describing the transportation, and 
     transportation-related, activities regulated by the DOT. This 
     section amends current law to ensure that persons who design 
     and inspect packages (or components of packages) are subject 
     to the hazardous materials regulations. This section also 
     clarifies that the hazardous materials regulations apply to 
     persons who prepare or accept hazardous materials for 
     transportation in commerce.
     Senate Bill
       Sec. 7323.
       This section amends subsection 5103(a), title 49 U.S.C. to 
     update the terminology used to describe materials the 
     Secretary is required to designate as hazardous under that 
     subsection. It would also amend subsection 5103(b)(1)(A) to 
     conform with the definition changes made to section 5102.
     Conference Substitute
       The Conference adopts the Senate provision.


          SEC. 7104. LIMITATION ON ISSUANCE OF HAZMAT LICENSES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7324.
       This section requires the Secretary of Health and Human 
     Services to recommend to the Secretary of Transportation any 
     chemical or biological material or agent to be regulated as a 
     hazardous material in transportation.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


  SEC. 7105. BACKGROUND CHECKS FOR DRIVERS HAULING HAZARDOUS MATERIALS

     House Bill
       Sec. 4113.
       This section authorizes the Secretary, and thus FMCSA, to 
     engage in international activities. This kind of authority is 
     necessary to aid in implementing the North American Free 
     Trade Agreement and to carry on discussions with U.S. trading 
     partners concerning a variety of safety issues.
     Senate Bill
       Sec. 7325.
       This section requires motor carriers registered in Mexico 
     and Canada and transporting hazardous material in the U.S. be 
     subject to a background records check similar to that which 
     will apply to U.S.-licensed motor carriers. In addition, this 
     section directs the Transportation Security Administration to 
     develop a process to notify an employer if an applicant fails 
     to meet specified standards. The provision eliminates 
     redundant background checks; requires Federal Regulations 
     apply to State appeals process for certain background checks; 
     and clarifies the term ``transportation security incident''.
     Conference Substitute
       The Conference adopts the House and Senate provisions with 
     modifications.


                SEC. 7106. REPRESENTATION AND TAMPERING

     House Bill
       Sec. 7005.
       This section updates the language in current law without 
     changing the scope of the law.
     Senate Bill
       Sec. 7326.
       This section would make technical changes to section 5104 
     for purposes of clarity.
     Conference Substitute
       The Conference adopts the Senate provision.


                    SEC. 7107. TECHNICAL AMENDMENTS

     House Bill
       Sec. 7006.
       This section provides technical amendments to update the 
     terminology in current law.
     Senate Bill
       Sec. 7327.
       This section would amend section 5105 by deleting 
     subsection (d) because the required study has been completed 
     and submitted to Congress.
       Sec. 7329.
       This section makes technical changes to title 49, United 
     States Code.
     Conference Substitute
       The Conference adopts the House provision.


                SEC. 7108. TRAINING OF CERTAIN EMPLOYEES

     House Bill
       Sec. 7007.
       This section amends section 5107(f) of current law 
     (redesignated in the bill as section 5107(g)) by deleting the 
     reference to section 5108(a)-(g)(1) and (h), and section 
     5109, but retains the provision in current law that states 
     that an action of the Secretary under subsections (a)-(d) of 
     this section and section 5106 of this title is not an 
     exercise of statutory authority, under section 4(b)(1) of the 
     Occupational Safety and Health Act of 1970, to prescribe or 
     enforce standards or regulations affecting occupational 
     safety or health.
       This section also codifies the existing practice of 
     providing hazardous materials training to maintenance-of-way 
     employees and railroad signalmen.
     Senate Bill
       Sec. 7328.
       This section allows training grants for the ``Train the 
     Trainer'' program to also be made to instructors to train 
     hazmat employees, to the extent determined appropriate by the 
     Secretary.
     Conference Substitute
       The Conference adopts both the House and Senate provisions. 
     The Conference retains the provision in current law that 
     states that an action of the Secretary is not an exercise of 
     statutory authority, under section 4(b)(1) of the 
     Occupational Safety and Health Act of 1970, to prescribe or 
     enforce standards or regulations affecting occupational 
     safety or health.
       The Conference codifies the existing practice of providing 
     hazardous materials training to maintenance-of-way employees 
     and railroad signalmen.
       The Conference allows training grants for the ``Train the 
     Trainer'' program to also be made to instructors to train 
     hazmat employees, to the extent determined appropriate by the 
     Secretary.


                        SEC. 7109. REGISTRATION

     House Bill
       Sec. 7008.
       This section amends the current law to include those 
     persons who design and inspect hazardous materials packages, 
     or package components, as persons required to register with 
     the Secretary. This change is consistent with the updated 
     language in Section 7004 concerning persons who are subject 
     to the hazardous materials regulations.
       Section 5108(g) is amended to require the Secretary to 
     establish and collect a registration fee sufficient to cover 
     the costs of processing the registration and that the 
     Secretary must collect a fee at least large enough to cover 
     processing costs from all entities otherwise exempted from 
     paying the registration fee. This section reduces the maximum 
     fee the Secretary may assess from $5,000 to $3,000.
       This section also requires the Administrator of RSPA to 
     transmit the annual registration information required in 
     section 5108 for motor carriers to FMCSA. The Committee 
     intends to ensure that FMCSA has

[[Page H7511]]

     the most up-to-date information on motor carriers that 
     transport hazardous materials and expects the transmittal of 
     information to be done as expeditiously as possible.
     Senate Bill
       Sec. 7329.
       The Secretary is allowed to require a registration 
     statement from persons who design and inspect a package or 
     packaging component that is represented as qualified for use 
     in transporting hazardous materials in commerce.
       This section requires the Secretary to impose a 
     registration fee sufficient to cover administrative 
     processing costs. Indian tribes and States would be exempted 
     from the requirements to register and pay registration fees.
       This section also reduces the maximum fee that would be 
     assessed under section 5108(g)(2)(A) from $5,000 to $3,000. 
     The Secretary is directed to reinstate the fees that were 
     suspended due to regulatory action.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


               SEC. 7110. SHIPPING PAPERS AND DISCLOSURE

     House Bill
       Sec. 7009.
       This section requires that each person who prepares a 
     shipping paper must make the disclosures that the Secretary 
     prescribes by regulation.
       This section amends section 5110 to extend the time period 
     shippers and carriers are required to retain shipping papers. 
     Under current law, shippers and carriers are required to 
     retain the shipping papers for one year after the hazardous 
     material is no longer in transportation. This section 
     requires shippers and carriers to retain shipping papers for 
     two years after the shipping papers are prepared.
     Senate Bill
       Sec. 7330.
       This section requires shippers to keep their shipping 
     papers for three years in order to facilitate investigations 
     of past violations and continues to require carriers to 
     retain their shipping papers for the current one year period.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications. The bill requires shippers to keep their 
     shipping papers for two years in order to facilitate 
     investigations of past violations, and continues to require 
     carriers to retain their shipping papers for the current one 
     year period. For purposes of this section, shippers who are 
     also carriers and carriers who are also shippers must retain 
     their shipping papers for two years.


                       SEC. 7111. RAIL TANK CARS

     House Bill
       Sec. 7010.
       This section repeals section 5111, which permits a rail car 
     built before January 1, 1971, to be used for hazardous 
     materials transportation only if the air brake equipment 
     support attachments of the car comply with the standard for 
     attachments contained in 49 CFR 179.100-16 and 179.200-19.
     Senate Bill
       Sec. 7331.
       This section repeals section 5111, which permits a rail car 
     built before January 1, 1971, to be used for hazardous 
     materials transportation only if the air brake equipment 
     support attachments of the car comply with the standard for 
     attachments contained in 49 CFR 179.100-16 and 179.200-19.
     Conference Substitute
       The Conference adopts a combination of the House and Senate 
     provisions.


                SEC. 7112. UNSATISFACTORY SAFETY RATINGS

     House Bill
       Sec. 7011.
       This section amends section 5113 to provide that a motor 
     carrier owner or operator transporting hazardous materials in 
     commerce who, upon review of an unfavorable fitness 
     determination, is determined by the Secretary to be ``unfit'' 
     is subject to the civil penalties in section 5123 and the 
     criminal penalties set forth in section 5124.
     Senate Bill
       Sec. 7332.
       This section provides that an unfit owner or operator 
     transporting hazardous material in commerce, as determined by 
     the Secretary, shall be subject to the civil penalties in 
     section 5123 and the criminal penalties in section 5124.
     Conference Substitute
       The Conference adopts the Senate provision.


          SEC. 7113. TRAINING CURRICULUM FOR THE PUBLIC SECTOR

     House Bill
       Sec. 7012.
       This section updates the training curriculum to include 
     appropriate emergency response training and planning programs 
     developed with all Federal assistance, not just those under 
     Federal grant programs.
       This section also makes the Secretary responsible for 
     distribution and publication of the training curriculum.
     Senate Bill
       Sec. 7333.
       Several technical amendments are made to reflect that the 
     public-sector training curriculum has already been developed 
     and to focus the statutory provisions on maintaining, not 
     developing, the curriculum.
       The training curriculum is required to include appropriate 
     emergency response training and planning programs for public-
     sector employees developed with Federal financial assistance, 
     not just those under other Federal grant programs.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications to include the House provision ensuring that 
     the training necessary for public sector employees also 
     complies with other voluntary consensus standard-setting 
     organizations as the Secretary determines appropriate. The 
     House Distribution and Publication language is also adopted.


SEC. 7114. PLANNING AND TRAINING GRANTS; HAZARDOUS MATERIALS EMERGENCY 
                           PREPAREDNESS FUND

     House Bill
       Sec. 7013.
       This section amends section 5116(b)(4) to require the 
     Secretary to consider the report established in section 7022 
     of this bill when determining a State or Indian tribe's 
     emergency response funding needs.
       This section also establishes the Secretary of 
     Transportation as the lead for monitoring public sector 
     emergency response planning and training. It also establishes 
     a new account within the Treasury specifically for hazardous 
     materials emergency preparedness.
       This section also allows the Secretary to use funds 
     collected from the annual registration fees to publish and 
     distribute the Emergency Response Guidebook.
     Senate Bill
       Sec. 7334.
       This section eliminates the current requirement that the 
     State share of planning and training grants must be above and 
     beyond `maintenance of effort' funds. In subsection (g), the 
     phrase `government grant programs' would be broadened to 
     `Federal financial assistance programs' in order to provide 
     for more complete coordination of funding sources.
       This section also amends section 5116 to provide a name for 
     the account established under subsection 5116(i), calling it 
     the `Emergency Preparedness Fund.' Amounts collected by the 
     Secretary under subsection 5108(g)(2)(C) would be deposited 
     into the Emergency Preparedness Fund and could be used for 
     emergency planning and training grants, under subsection 
     5116(a) and (b), monitoring and technical assistance under 
     subsection 5116(f), and administrative costs of carrying out 
     sections 5116, 5108(g)(2), and section 5115. It also 
     clarifies that these amounts may be used to publish and 
     distribute the Emergency Response Guidebook. Information on 
     the allocation and uses of the grants would be made available 
     to the public on an annual basis.
     Conference Substitute
       The Conference adopts the Senate and House provisions with 
     modifications. A compromise on the Government Share of Costs 
     is also adopted.


               SEC. 7115. SPECIAL PERMITS AND EXCLUSIONS

     House Bill
       Sec. 7014.
       This section clarifies that the Secretary may issue a 
     special permit to any person who performs a function 
     regulated under section 5103(b)(1).
       This section increases the maximum renewal period of 
     special permits from two years to four years, except that 
     special permits issued related to highway routing of 
     hazardous materials are only renewable for a two-year period.
     Senate Bill
       Sec. 7335.
       This section clarifies that the Secretary may issue a 
     special permit to any person who performs a function 
     identified under section 5103(b)(1).
       In addition, this section changes the maximum initial 
     effective period of a special permit to two years, and 
     provides for the renewal of special permits for four-year 
     successive periods. This change eliminates a great deal of 
     unnecessary industry application time and government 
     processing time involved in the present two-year renewal 
     process.
       This section also repeals a requirement that the Secretary 
     maintain 30 hazardous materials safety inspectors more than 
     the number of inspectors authorized at the end of FY 1990. 
     The Pipeline and Hazardous Materials Safety Administration 
     maintains inspectors in excess of this requirement and, 
     pursuant to recommendations resulting from a department-wide 
     DOT review of the hazmat program, is requesting more 
     flexibility about how inspectors should be utilized.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications. The Conference also adopts the Senate's repeal 
     of section 5118.


                SEC. 7116. UNIFORM FORMS AND PROCEDURES

     House Bill
       Sec. 7015.
       This section requires the Secretary to establish a working 
     group to develop uniform forms and procedures for States to 
     register and issue permits to persons who transport, or cause 
     to be transported hazardous materials in the State. The 
     working group is required to develop a report of its 
     recommendations for the Secretary to consider

[[Page H7512]]

     when issuing regulations to carry out a uniform State 
     registration system. The working group is prohibited from 
     proposing to limit any fee that a State may impose or 
     collect.
     Senate Bill
       Sec. 7336.
       This section reflects the fact that the working group 
     established to formulate uniform registration and permitting 
     forms and procedures has completed its task and submitted a 
     report to Congress. The section authorizes the Secretary to 
     prescribe regulations to establish uniform forms and 
     regulations for States to: (1) register and issue permits for 
     the transportation of hazmat by motor vehicle; and (2) permit 
     the transportation of hazmat in a State. In addition, States 
     would be authorized to participate in the uniform forms and 
     procedures program recommended by the Alliance for Uniform 
     Hazmat Transportation Procedures.
     Compromise
       The Conference adopts the House provision with 
     modifications.


   SEC. 7117. INTERNATIONAL UNIFORMITY OF STANDARDS AND REQUIREMENTS

     House Bill
       Sec. 7016.
       This section amends current law to reflect that the 
     Secretary may have additional international requirements, in 
     addition to current international standards, that need to be 
     met.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


                  SEC. 7118. ADMINISTRATIVE AUTHORITY

     House Bill
       Sec. 7017.
       This section amends section 5121 to provide for enhanced 
     authority to discover hidden shipments of hazardous materials 
     and to clarify and enhance the inspection and enforcement 
     authority of DOT officials and inspection personnel, thereby 
     enabling them to more effectively identify hazardous 
     materials shipments and to determine whether those shipments 
     are made in accordance with the hazardous materials 
     regulations. This proposal would expand DOT inspection 
     authority to authorize a designated DOT officer or employee 
     to: access, open, and examine a package (except for the 
     packaging immediately adjacent to the hazardous materials 
     contents) offered for or in transportation when the officer 
     or employee has an objectively reasonable and articulable 
     belief that the package may contain a hazardous material; 
     remove from transportation a package or related packages in a 
     shipment when the officer or employee has an objectively 
     reasonable and articulable belief that the package or 
     packages may pose an imminent hazard and contemporaneously 
     documents that belief; gather information from the shipper, 
     packaging manufacturer or retester, or others responsible for 
     the package to determine the nature and hazards of the 
     contents of the package; as necessary, order the shipper, 
     packaging manufacturer or retester, or others responsible for 
     the package to have the package transported to, opened, and 
     the contents analyzed at an appropriate facility; and 
     authorize properly qualified personnel to assist in the 
     package opening and examination when safety might otherwise 
     be compromised.
       This section also amends current law to require the 
     Secretary to develop procedures to assist in the safe 
     resumption of transportation of the package and transport 
     unit when an inspection or investigation does not result in 
     discovery of an imminent hazard. This section directs the 
     Secretary to develop expedited procedures for hazardous 
     materials that are perishable.
       The Committee believes strongly that DOT officials, law 
     enforcement and inspection personnel must have the tools 
     necessary to accurately determine whether hazardous materials 
     are being transported safely and in accordance with the 
     relevant law and regulations. To that end, the Committee 
     supports the use of new technologies, such as the Hazmat 
     Trucking Enforcer, that enable inspectors to conduct 
     hazardous materials inspections in a more effective manner 
     and to respond swiftly to any incident involving hazardous 
     materials. The Committee notes that States must be in 
     substantial compliance with a number of requirements under 49 
     U.S.C. 31102 as a condition of receiving MCSAP funding, 
     including requirements to deploy technology to enhance the 
     efficiency and effectiveness of commercial motor vehicle 
     safety programs under 49 U.S.C 31102(b)(1)(A), as amended.
       This section would also repeal a requirement that the 
     Secretary maintain 30 hazardous materials safety inspectors 
     more than the number authorized at the end of fiscal year 
     1990. PHMSA currently maintains inspectors in excess of this 
     requirement.
     Senate Bill
       Sec. 7337.
       This section improves safety by clarifying and enhancing 
     the inspection and enforcement authority of DOT officials and 
     inspection personnel. Section 5121(a) is amended to expressly 
     state that the Secretary's enforcement authority includes the 
     authority to conduct tests. This section also clarifies that 
     persons subject to chapter 51 must make property, as well as 
     records, reports, and information, available to the Secretary 
     for inspection upon the Secretary's request.
       This section provides for enhanced authority for DOT 
     officials to discover hidden shipments of hazardous 
     materials. Section 5121(c) is amended to clarify and enhance 
     the inspection and enforcement authority of DOT officials and 
     inspection personnel, thereby enabling them to more 
     effectively identify hazardous materials shipments and to 
     determine whether those shipments are made in accordance with 
     the Hazardous Materials Regulations.
       The Secretary is required to develop procedures for the 
     safe resumption of transportation of a package or transport 
     unit when an inspection or investigation does not result in 
     the discovery of an imminent hazard. The Committee expects 
     that the Secretary will take in to consideration the impact 
     of these procedures on the resumption of transit for time 
     sensitive medical material such as radiopharmaceuticals and 
     radionucleides.
       In addition, this section authorizes the Secretary to issue 
     an emergency order when it is determined, by inspection, 
     investigation, testing, or research, that a violation of 
     hazardous material transportation laws, or an unsafe 
     condition or practice, is causing an imminent hazard. In 
     those situations, the Secretary is authorized to issue or 
     impose emergency restrictions, prohibitions, recalls, or out-
     of-service orders, without notice or the opportunity for a 
     hearing, but only to the extent necessary to abate the 
     imminent hazard.
       The Secretary is required to issue regulations implementing 
     the new provisions governing package inspection and emergency 
     orders.
       A new subsection (g) authorizes the Secretary to enter into 
     grants, cooperative agreements, and other transactions to 
     address security risk assessment and emergency preparedness. 
     The objectives would include research, development, 
     demonstration, risk assessment, emergency response planning, 
     program support, and training activities.
       This section requires the Secretary, through the Bureau of 
     Transportation Statistics, to submit a report at least every 
     three years on the transportation of hazardous materials 
     during the preceding three years, including a summary of 
     hazmat shipments, deliveries, and movements during the 
     period. In addition, the section would require a report every 
     two years with, among other items, an analysis of hazmat 
     accidents and incidents over the preceding two years, a list 
     and summary of special permits, regulations and orders, and 
     an evaluation of the effectiveness of enforcement activities 
     relating to the transportation of hazmat during the period.
       The Secretary would be authorized to determine whether 
     release of certain sensitive information contained in 
     government records would be contrary to national security.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications. The Conference believes strongly that DOT 
     officials, law enforcement and inspection personnel must have 
     the tools necessary to accurately determine whether hazardous 
     materials are being transported safely and in accordance with 
     the relevant law and regulations.


                         SEC. 7119. ENFORCEMENT

     House Bill
       Sec. 7018.
       This section amends section 5122 to clarify the types of 
     judicial relief, including a temporary or permanent 
     injunction, punitive damages, and assessment of civil 
     penalties, available to be granted in an action brought by 
     the Attorney General. Subsection (b) is amended for clarity 
     by changing the word ``ameliorate'' to ``mitigate.''
     Senate Bill
       Sec. 7338.
       This section clarifies the types of judicial relief, 
     including civil penalties, that may be granted in an action 
     brought by the Attorney General.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


                        SEC. 7120. CIVIL PENALTY

     House Bill
       Sec. 7019.
       This section amends section 5123 to increase the maximum 
     civil penalty from $27,500 to $50,000 for each violation of a 
     law or regulation under Chapter 51. In those cases resulting 
     in death, serious illness, severe injury to any person, or 
     substantial destruction of property, the Secretary would be 
     able to increase the maximum penalty to $100,000.
     Senate Bill
       Sec. 7339.
       This section amends the civil penalty provisions in section 
     5123 to cover violations of special permits or approvals 
     issued by DOT to ensure that appropriate enforcement action 
     can be taken against persons violating those special 
     authorities. Civil penalties for death, serious illness, or 
     severe injury would be increased to up to $100,000 to serve 
     as a deterrent against violations that could lead to such 
     outcomes. Maximum civil penalty amounts for other violations 
     are set at the current level of $32,500 and violations 
     related to employee training will be subject to a minimum 
     penalty of $450. A violator would

[[Page H7513]]

     be liable for interest that accrues on a civil penalty.
     Conference Substitute
       The Conference adopts the House provisions with a 
     modification.


                      SEC. 7121. CRIMINAL PENALTY

     House Bill
       Sec. 7020.
       Section 5124 would be revised to include a new ``reckless'' 
     standard and to define the ``knowing,'' ``reckless,'' and 
     ``willful'' mental-state standards necessary to establish a 
     criminal violation. Section 5124(a) would be amended to 
     provide that a person who knowingly, willfully, or recklessly 
     violates chapter 51 or a regulation, order, special permit, 
     or approval issued under that chapter, is subject to a fine 
     imposed under title 18 and/or imprisonment of not more than 5 
     years. In cases where a violation involves the release of a 
     hazardous material that results in death or bodily injury to 
     any person, the maximum term of imprisonment is 10 years.
       Section 5124(c) defines a ``willful'' violation as when the 
     person has knowledge of the facts giving rise to the 
     violation and the person has knowledge that the conduct was 
     unlawful.
       Section 5124(d) defines a ``reckless'' violation as when a 
     person displays a deliberate indifference or conscious 
     disregard for the consequences of his or her conduct.
     Senate Bill
       Sec. 7340.
       An increased criminal penalty of not more than twenty years 
     is applied to existing law for a person who knowingly 
     violated 49 U.S.C. 5104(b) or willfully violates chapter 51 
     or a regulation issued under that chapter, and thereby causes 
     a release of hazardous material. The section also provides 
     that a separate violation occurs for each day a violation 
     continues.
     Conference Substitute
       The Conference adopts the House provision.


                         SEC. 7122. PREEMPTION

     House Bill
       Sec. 7021.
       This section adds language to ensure that when the 
     preemption test required by this section is conducted, each 
     requirement is independent in their application to the State 
     or Indian tribe.
     Senate Bill
       Sec. 7341.
       This section would include a new subsection outlining the 
     purposes of the Secretary's current preemption authority and 
     clarifies that a person may apply to the Secretary for a 
     decision as to whether a fee imposed by a State, political 
     subdivision of a State, or an Indian tribe is preempted. 
     Further, this section deletes the requirement that the 
     Secretary publish the reason for a delay in issuing a 
     preemption determination in the Federal Register.
       Subsection 5125(j) is added to indicate that the preemption 
     standard is to be applied independently to each non-Federal 
     requirement in order to determine whether it is preempted.
       Finally, new subsection 5125(i) clarifies that the 
     Secretary's preemption authority does not apply to a 
     procedure, penalty, required mental state, or other standard 
     used by a State, political subdivision of a State, or Indian 
     tribe to enforce hazardous material transportation 
     requirements.
     Compromise
       The Conference adopts the Senate provision with 
     modifications.


                       SEC. 7123. JUDICIAL REVIEW

     House Bill
       Sec. 7023.
       This section adds a new section 5127 providing for judicial 
     review of final actions taken by the Secretary under chapter 
     51. This provision establishes the appropriate judicial forum 
     for review of final agency actions in the areas of 
     compliance, enforcement, civil penalties, rulemaking, and 
     preemption.
       Under this proposal, the U.S. Court of Appeals for the 
     District of Columbia or the U.S. Court of Appeals for the 
     U.S. circuit in which a person seeking review resides or has 
     his or her principal place of business would review the final 
     action. The petition for review must be filed within 60 days 
     after issuance of the order. The section describes judicial 
     procedures, the authority of the court, and a requirement for 
     prior objection.
     Senate Bill
       Sec. 7343.
       This section adds a new section 5127 providing for judicial 
     review of final actions taken by the Secretary under chapter 
     51. This provision establishes the appropriate judicial forum 
     for review of final agency actions in the areas of 
     compliance, enforcement, civil penalties, rulemaking, and 
     preemption.
       Under the proposal, the United States Court of Appeals for 
     the District of Columbia or for the circuit in which a person 
     seeking review resides or has his or her principal place of 
     business would review the final action. The petition for 
     review must be filed within 60 days after issuance of the 
     order.
     Conference Substitute
       The Conference adopts the House provision with 
     modifications.


                 SEC. 7124. RELATIONSHIP TO OTHER LAWS

     House Bill
       Sec. 7022.
       This section updates the language in the current law 
     without changing the scope.
     Senate Bill
       Sec. 7342.
       This section requires that a person under contract to the 
     United States government to design or inspect a packaging or 
     packaging component used for transporting hazardous materials 
     must comply with chapter 51 and the hazardous materials 
     regulations.
       Further, this section enables hazardous materials law to 
     supersede postal laws and regulations under titles 18 or 39 
     only `in case of an imminent hazard.'
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


               SEC. 7125. AUTHORIZATION OF APPROPRIATIONS

     House Bill
       Sec. 7024.
       This section provides funding for the DOT to implement the 
     programs and grants established and required in chapter 51 
     for fiscal years 2005 through 2007.
     Senate Bill
       Sec. 7344.
       This section authorizes appropriations of $24,940,000 for 
     FY 2005, $29,000,000 for FY 2006, and $30,000,000 for each of 
     FYs 2007 through 2009.
     Conference Substitute
       The Conference adopts the following structure:
        This section would authorize appropriations of 
     $24,940,000 for FY 2005, $29,000,000 for FY 2006, and 
     $30,000,000 for each of FYs 2007 and 2008.
        A new subsection (b) would authorize 
     appropriations from the Hazardous Materials Emergency 
     Preparedness Fund account to carry out certain activities:
     $4,000,000 for each of FYs 2005 through 2008 to carry out 
     section 5107(e) (training grants);
     $200,000 for each of FYs 2005 through 2008 to carry out 
     section 5115 (training curriculum for the public sector);
     $21,800,000 for each FYs 2005 through 2008 for sections 
     5116(a) and (b) to be split as follows: $5,000,000 for 
     section 5116(a); $7,800,000 for 5116(b); and 35 percent of 
     the remainder for 5116(a) and 65 percent of the remainder for 
     5116(b). The Secretary may increase the amount for 5116(b) if 
     the Secretary determines it appropriate based upon the 
     relative training and planning needs of individual 
     applicants.
     $150,000 for each of FYs 2005 through 2008 to carry out 
     section 5116(f) (monitoring and technical assistance to the 
     public sector); $1,000,000 for each of FYs 2005 through 2008 
     to carry out section 5116(j) (supplemental training grants);
     $625,000 for each of FYs 2005 through 2008 to carry out 
     section 5116(i)(3) (for publication and distribution of the 
     Emergency Response Guidebook).
     Funding for issuance of hazmat licenses is authorized to be 
     appropriated for such amounts as may be necessary to carry 
     out section 5103a.
     Administrative costs for carrying out certain programs are 
     capped at 2 percent.


        SEC. 7126. REFERENCES TO THE SECRETARY OF TRANSPORTATION

     House Bill
       Sec. 7026.
       This section designates that any reference to the 
     ``Secretary of Transportation'' in chapter 51 be simplified 
     to ``Secretary''.
     Senate Bill
       Sec. 7346.
       This section clarifies that references to the ``Secretary 
     of Transportation'' in certain sections of chapter 51 are 
     simplified to ``Secretary''.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


                      SEC. 7127. CRIMINAL MATTERS

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7363.
       This section provides for a correction to title 18 of the 
     United States Code for the transportation of explosives. It 
     makes explosives that are regulated by the DOT and the 
     Department of Homeland Security (DHS) subject to their 
     authority.
     Conference Substitute
       The Conference adopted the Senate provision with 
     modifications.


           SEC. 7128. ADDITIONAL CIVIL AND CRIMINAL PENALTIES

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7345.
       This section amends criminal penalties for violations in 
     transporting hazardous materials by air (49 U.S.C. 46312) to 
     clarify that the regulations referred to in that section 
     include the Hazardous Materials Regulations issued by the 
     Secretary under chapter 51. Consequently, violations in 
     transporting hazardous materials by air would clearly 
     constitute violations of both Federal hazardous material 
     transportation laws and the Federal Aviation Act.

[[Page H7514]]

       This section also would allow the Department of Justice to 
     seek restitution against persons convicted of a criminal 
     offense under 49 U.S.C. 5124.
     Conference Substitute
       The Conference adopted the Senate provision.


     SEC. 7129. HAZARDOUS MATERIAL TRANSPORTATION PLAN REQUIREMENT

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7368.
       This section would exempt farmers as defined in the section 
     from certain hazardous materials transportation plans for 
     local farm-related shipments within 150 miles of their farm.
     Conference Substitute
       The Conference adopts the Senate provision.


  SEC. 7130. DETERMINING AMOUNT OF UNDECLARED SHIPMENTS OF HAZARDOUS 
                  MATERIALS ENTERING THE UNITED STATES

     House Bill
       Sec. 7025.
       This section requires the GAO to conduct a study to propose 
     methods to determine the amount of undeclared shipments of 
     hazardous materials entering the United States.
     Senate Bill
       Sec. 7364.
       This section authorizes the Secretary to initiate a program 
     to randomly inspect cargo shipments at U.S. Customs ports of 
     entry to determine the extent to which undeclared hazardous 
     material is being offered for transportation in commerce. DOT 
     inspection personnel, in coordination with DHS officials, are 
     authorized to open and inspect containers at any U.S. Customs 
     port of entry. The inspections are then carried out by DOT 
     inspection personnel at U.S. Customs ports of entry where 
     they are similar to border inspections, and they would be 
     based upon random selections made by supervisory personnel 
     not present at the site of the inspections.
     Conference Substitute
       The Conference adopts the House provision.


            SEC. 7131. HAZARDOUS MATERIALS RESEARCH PROJECTS

     House Bill
       Sec. 5216.
       This section authorizes PHMSA to enter into a contract with 
     the National Academy of Science to carry out the 9 research 
     projects called for in the 2005 Special Report 283 of the 
     Transportation Research Board entitled ``Cooperative Research 
     for Hazardous Materials Transportation: Defining the Need, 
     Converging on Solutions''.
     Senate Bill
       Sec. 7370.
       This section creates a HAZMAT research cooperative through 
     the National Academy of Sciences' Transportation Research 
     Board.
     Conference Substitute
       The Conference adopts the House provision.


 SEC. 7132. NATIONAL FIRST RESPONDER TRANSPORTATION INCIDENT RESPONSE 
                                 SYSTEM

     House Bill
       Sec. 7027.
       This section authorizes $2,500,000 for each of fiscal years 
     2005 through 2007 for Operation Respond.
     Senate Bill
       Sec. 7367.
       This section would authorize $5,000,000 annually for FYs 
     2005 through 2009 for Operation Respond to update the OREIS 
     and permits the Secretary to require the Operation Respond 
     system function across multiple transportation modes.
     Conference Substitute
       The conference adopts the House provision.


               SEC. 7133. COMMON CARRIER PIPELINE SYSTEM

     House Bill
       This section requires a study to examine the economic, 
     environmental, and homeland security advantages and 
     disadvantages of operating a common carrier pipeline system 
     in Texas, Louisiana, Mississippi, and Alabama for the 
     transportation of aromatic chemicals.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference adopts the House provision.

                Subtitle B--Sanitary Food Transportation


                         SEC. 7201. SHORT TITLE

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7381.
       This section sets forth the short title for the Sanitary 
     Food Transportation Act of 2003. This title would reallocate 
     responsibilities for food transportation safety among the 
     U.S. Department of Health and Human Services, the U.S. 
     Department of Transportation, and the U.S. Department of 
     Agriculture.
     Conference Substitute
       The Conference adopts the Senate provision.


 SEC. 7202. RESPONSIBILITIES OF SECRETARY OF HEALTH AND HUMAN SERVICES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7382.
       This section amends section 402 of the Federal Food, Drug, 
     and Cosmetic Act (the Act; 21 U.S.C. 391) to provide that 
     food is adulterated if transported in violation of safe 
     transportation practices prescribed in the new section 416 of 
     the Act.
       Subsection (b) adds to the Act a new section 416 requiring 
     the Secretary of HHS to establish by regulation sanitary 
     transportation practices to be followed by shippers, 
     carriers, and others engaged in food transport. The Secretary 
     of HHS may prescribe practices relating to matters such as 
     sanitation, packaging and protective measures; limitations on 
     the use of vehicles; information sharing between shippers and 
     carriers; and record keeping, reporting, and compliance with 
     inspections.
       It also authorizes the Secretary of HHS to publish in the 
     Federal Register (and amend as needed) lists of non-food 
     products that could render food products adulterated if 
     shipped simultaneously or subsequently in the same vehicle.
       The section authorizes the Secretary of HHS to waive all or 
     part of the requirements of section 416, in appropriate 
     circumstances, with respect to particular classes of persons, 
     vehicles, food, or non-food products.
       This provision also preempts State or local laws concerning 
     transportation of food. Finally, it requires the heads of 
     other Federal agencies, including the Secretaries of 
     Transportation and the Department of Agriculture, and the 
     Administrator of the Environmental Protection Agency, to 
     assist the Secretary of HHS, upon request, in carrying out 
     this section.
       Paragraph (c) of this section would add to the Act a new 
     section requiring persons subject to these provisions to 
     cooperate with HHS inspections of records.
       Subsection (d) amends section 301 of the Act to make 
     violations of requirements added by this section prohibited 
     acts subject to the sanctions provided in chapter III of the 
     Act.
     Conference Substitute
       The Conference adopts the Senate version with 
     modifications.


          SEC. 7203. DEPARTMENT OF TRANSPORTATION REQUIREMENTS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7383.
       This section requires the Secretary, in consultation with 
     the Secretaries of HHS and the Department of Agriculture, to 
     establish inspection procedures for identifying suspected 
     incidents of contamination or adulteration of food that might 
     violate regulations issued under section 416 of the Federal 
     Food, Drug, and Cosmetic Act, and of meat and poultry 
     products subject to detention under section 402 of the 
     Federal Meat Inspection Act (21 U.S.C. 672) and section 19 of 
     the Poultry Products Inspection Act (21 U.S.C. 467a). In 
     addition, it requires the Secretary to train DOT personnel 
     who perform motor vehicle and railroad related safety 
     inspections to identify practices and conditions that could 
     pose a threat to food safety and to notify the secretaries of 
     HHS and the Department of Agriculture of any instances of 
     potential food contamination identified during those 
     inspections.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications.


                       SEC. 7204. EFFECTIVE DATE

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7384.
       This section makes the changes in law under the subtitle 
     align with the Federal fiscal year, which is particularly 
     important for the transfer of duties among different 
     agencies.
     Conference Substitute
       The Conference adopts the Senate version with 
     modifications.

     Subtitle C--Research and Innovative Technology Administration


                  SEC. 7301. ADMINISTRATIVE AUTHORITY

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7361.
       This section provides RITA necessary administrative 
     authority to conduct effective research on transportation 
     service and infrastructure assurance and to prevent security-
     sensitive information developed in the course of that 
     research from aiding persons who might want to disrupt the 
     transportation system.
     Conference Substitute
       The conference adopts the Senate version with 
     modifications.

      TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE


   SEC. 8001. DISCRETIONARY SPENDING LIMITS FOR THE HIGHWAY AND MASS 
                           TRANSIT CATEGORIES

     House Bill
       Sec. 8001.
       This section amends section 251(c) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 to continue 
     separate

[[Page H7515]]

     spending limits for the highway and mass transit categories 
     in Highway Trust Fund budget authority, new budget authority, 
     and outlays for fiscal years 2004 through 2009. The section 
     also amends section 250(c)(4) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 to reference this Act 
     instead of the Transportation Equity Act for the 21st 
     Century, and to allow for successor accounts to be 
     established in the budget accounts used to track highway and 
     transit spending.
     Senate Bill
       Sec. 3102(a) and (c).
       This section amends section 251(c) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 to continue 
     separate spending limits for the highway and mass transit 
     categories in Highway Trust Fund budget authority for fiscal 
     years 2005 through 2009. This section amends section 
     250(c)(4) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 to reference this Act instead of the 
     Transportation Equity Act for the 21st Century, and defines 
     the budget accounts to be used to track highway and transit 
     spending pursuant to this Act.
     Conference Substitute
       The Conference adopts the House version without fiscal year 
     2004.


     SEC. 8002. ADJUSTMENTS TO ALIGN HIGHWAY SPENDING WITH REVENUES

     House Bill
       Sec. 8002.
       This section amends section 251(b)(1) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 to adjust 
     obligations from the Highway Account of the Highway Trust 
     Fund to actual levels of highway receipts for fiscal years 
     2004 through 2009.
     Senate Bill
       Sec. 3102(b).
       This section amends section 251(b)(1) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 to adjust 
     obligations from the Highway Account of the Highway Trust 
     Fund to actual levels of highway receipts for fiscal years 
     2005 through 2009.
     Conference Substitute
       The Conference adopts the House version without fiscal year 
     2004.


               SEC. 8003. LEVEL OF OBLIGATION LIMITATIONS

     House Bill
       Sec. 8003.
       This section sets the obligation limitation levels for the 
     purposes of section 251(b) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 for the highway 
     category and mass transit category, including both Highway 
     Trust Funds and new budget authority, for fiscal years 2004 
     through 2009.
     Senate Bill
       Sec. 3103.
       This section sets the obligation limitation levels for the 
     purposes of section 251(b) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 for the highway 
     category and mass transit category, for fiscal years 2005 
     through 2009.
     Conference Substitute
       The Conference adopts the House version without fiscal year 
     2004.


                  SEC. 8004. ENFORCEMENT OF GUARANTEE

     House Bill
       Sec. 8004.
       This section amends clause 3 of Rule XXI of the Rules of 
     the House of Representatives to update the cite to this Act 
     and add language providing that obligation limitation 
     relating to surface transportation projects under section 
     1602 of the Transportation Equity Act for the 21st Century 
     and section 7102 of the House bill shall be assumed to be 
     administered on the basis of sound program management 
     practices allowing States to decide high priority project 
     funding priorities within State allocations.
     Senate Bill
       No comparable provision.
     Conference Substitute
       The Conference adopts the House version without fiscal year 
     2004. Also, this section conforms the cites to the new act.


     SEC. 8005. TRANSFER OF FEDERAL TRANSIT ADMINISTRATIVE EXPENSES

     House Bill
       Sec. 8005.
       This section states that it shall be in order for purposes 
     of clauses 2 and 3 of Rule XXI of the House of 
     Representatives to transfer funds in appropriations bills 
     from Federal Transit Administration administrative expenses 
     to other mass transit budget accounts under section 
     250(c)(4)(C) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985.
     Senate Bill
       No comparable provision.
     Conference Substitute
       The Conference adopts the House version without fiscal year 
     2004.

                       TITLE IX--RAIL PROVISIONS


            SEC. 9001. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT

     House Bill
       Sec. 9001.
       Section 9001 reauthorizes the Swift Rail Development Act 
     (``Swift Act'') and makes some technical amendments.
       Subsection (a) amends the Swift Act to address ``corridor 
     development'' rather than ``corridor planning.'' It also 
     authorizes the acquisition of track, signals, rail rolling 
     stock and locomotives under the program.
       Subsection (b) reauthorizes the Swift Act at $100 million 
     per year from Fiscal Year 2006 through Fiscal Year 2013. Of 
     this $100 million, $70 million is for corridor development 
     activities and $30 million is for technology development 
     activities.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference adopts the House provision.


      SEC. 9002. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7602.
       This section establishes a grant program to provide 
     financial assistance for local rail line relocation and 
     improvement projects. In order for a State to be eligible for 
     a grant for an improvement construction project, the project 
     must: mitigate the adverse effects of rail traffic on safety, 
     motor vehicle flow, community quality of life, including 
     noise mitigation, or economic development; or involve a 
     lateral or vertical relocation of any portion of the rail 
     line.
       There is $350 million for each fiscal year 2006 through 
     2009 authorized for these grants. At least half of the funds 
     awarded under this section shall not be more than $20 million 
     each and not more than twenty-five percent of the total 
     amount may be used for one project. A State, or other 
     eligible entity, will be required to pay at least ten percent 
     of the shared costs of the project, whether it be through 
     real property, a contribution of services, or previous costs 
     spent on the project before the application was filed. The 
     State may also seek financial contributions from private 
     entities benefiting from the rail line relocation or 
     improvement project. This program will be implemented no 
     later than October 1, 2006.
     Conference Substitute
       The Conference adopts the Senate provisions with 
     modifications. New language added during conference ensures 
     the Secretary considers the effects of a new rail line, or 
     improvement to an existing rail line, on motor vehicle and 
     pedestrian traffic, safety, community quality of life, and 
     area commerce, as well as freight and passenger rail 
     operations.


          SEC. 9003. REHABILITATION AND IMPROVEMENT FINANCING

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7603.
       Section 7603 changes the current Railroad Rehabilitation 
     and Improvement Financing (RRIF) program administered by the 
     Federal Railroad Administration through the Secretary of 
     Transportation. Historically, RRIF loans have taken too long 
     to process and obstacles to participation have been too high. 
     These statutory changes were made to correct past problems 
     and encourage greater utilization of the RRIF program.
       Subsection (c) adds to the list of priorities those 
     projects that would enhance service and capacity in the 
     national transportation system. The Secretary should give 
     priority consideration to applications showing an ability to 
     help achieve these goals.
       This section also increases the authorization to $6 billion 
     to ensure adequate resources are available. The Secretary may 
     not require an applicant for a direct loan or loan guarantee 
     to provide collateral. Congress seeks to encourage, not 
     discourage, major rail investment in the U.S.
       This section also provides a time limit of 90 days for the 
     Secretary's approval or disapproval of direct loan or loan 
     guarantee applications. No fees are to be charged by the 
     Secretary in connection with a direct loan or loan guarantee, 
     unless otherwise stated under section 502 of title 45. 
     Criteria outlining the Secretary's approval standards will be 
     published within thirty days of enactment.
     Conference Substitute
       The Conference adopts the Senate provisions with 
     modifications. Among the Senate features retained is the 
     legislative overruling of the a priori limits on loan size 
     and cohort composition, as well as excessive 
     collateralization requirements, contained in the existing 
     Department of Transportation-Office of Management and Budget 
     memorandum of understanding on the RRIF program. The bill 
     also retains the Senate language overruling both the 
     memorandum and DOT regulations requiring rejection by a 
     private lender before an applicant may obtain a RRIF loan 
     through DOT. To ensure that adequate resources are available, 
     the authorization level increases from the proposed $6 
     billion in the Senate language to $35 billion. Also, the 
     maximum portion that may be used for non-Class I railroad 
     loans is increased from the proposed $3 billion in the Senate 
     language to $7 billion.
       Another modification allows the Secretary to provide direct 
     loans and loan guarantees to interstate compacts formed 
     pursuant to the 1997 Amtrak reform law, and solely for the 
     purpose of constructing a rail connection between a plant or 
     facility and a second rail carrier, limited option rail 
     freight shippers

[[Page H7516]]

     that own or operate a plant or other facility that is served 
     by no more than a single railroad. Also, the Secretary is 
     required to give priority to projects that materially 
     alleviate rail capacity problems that degrade the provision 
     of service to shippers and fulfill a need in the national 
     transportation system. RRIF should be used to help improve 
     service and capacity in the national rail system wherever 
     feasible.
       A change was made to allow the Secretary to charge a 
     reasonable evaluation fee for the cost of appraisal, and for 
     making necessary determinations and findings. The amounts 
     collected under this section will be credited directly to the 
     Safety and Operations account of the Federal Railroad 
     Administration.


SEC. 9004. REPORT REGARDING IMPACT ON PUBLIC SAFETY OF TRAIN TRAVEL IN 
                  COMMUNITIES WITHOUT GRADE SEPARATION

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7604.
       The bill would require the Secretary of Transportation to 
     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 not later than one 
     year after the date of enactment of this act.
     Conference Substitute
       The Conference adopts the Senate provision.


         SEC. 9005. WELDED RAIL AND TANK CAR SAFETY IMPROVEMENT

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       Sec. 7326.
       The bill would require the Federal Railroad Administration 
     (FRA) to validate a predictive model for certain rail tank 
     car standards; initiate a rulemaking on standards and 
     complete an analysis of the impact resistance of steel used 
     in pressurized tank cars built before 1989; and, require 
     railroads to improve inspection procedures for continuous 
     welded rail track and the identification of cracks in rail 
     joint bars.
     Conference Substitute
       The Conference adopts the Senate provision with 
     modifications to what the Administration is required to do 
     with the results of the analysis.


                       SEC. 9006. ALASKA RAILROAD

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       The Conference authorizes the Secretary of Transportation 
     to make grants to the Alaska railroad for capital 
     rehabilitation and improvements benefiting its passenger 
     operation. Such sums as may be necessary are authorized to 
     carry out this section.


         SEC. 9007. STUDY OF RAIL TRANSPORTATION AND REGULATION

     House Bill
       No comparable provision in House bill.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference requires the Secretary of Transportation, 
     within 180 days of enactment of this Act, to enter into a 
     contract with the Transportation Research Board of the 
     National Academy of Sciences to conduct a comprehensive study 
     of the Nation's railroad transportation system since the 
     enactment of the Staggers Rail Act of 1980. The study shall 
     address and make recommendations on (1) the performance of 
     the Nation's major railroads regarding service levels, 
     service quality, and rates; (2) the projected demand for 
     freight transportation over the next two decades and the 
     constraints limiting the railroad's ability to meet that 
     demand; (3) the effectiveness of public policy in balancing 
     the need for railroads to earn adequate returns with those of 
     shippers for reasonable rates and adequate service; and (4) 
     the future role of the Surface Transportation Board in 
     regulating railroad rates, service levels, and the railroads' 
     common carrier obligations, particularly as railroads may 
     become revenue adequate.


        SEC. 9008. HAWAII PORT INFRASTRUCTURE EXPANSION PROGRAM

     House Bill
       No comparable provision in the House bill.
     Senate Bill
       No comparable provision in the Senate bill.
     Conference Substitute
       This provision designates MARAD as the lead federal agency 
     to transfer and administer federal funds for intermodal and 
     port improvements in the State of Hawaii.

                   TITLE X--MISCELLANEOUS PROVISIONS

        Subtitle A--Sportfishing and Recreational Boating Safety


                        SEC. 10101. SHORT TITLE

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7501.
     Conference Substitute
       The Conference adopts the Senate version.

    CHAPTER 1--DINGELL-JOHNSON SPORT FISH RESTORATION ACT AMENDMENTS


  SEC. 10111. AMENDMENT OF DINGELL-JOHNSON SPORT FISH RESTORATION ACT

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7511.
     Conference Substitute
       The Conference adopts the Senate version.


              SEC. 10112. AUTHORIZATION OF APPROPRIATIONS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7512.
     Conference Substitute
       The Conference adopts the Senate version.


             SEC. 10113. DIVISION OF ANNUAL APPROPRIATIONS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7513.
     Conference Substitute
       The Conference adopts the Senate version.


                  SEC. 10114. MAINTENANCE OF PROJECTS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7514.
     Conference Substitute
       The Conference adopts the Senate version.


                   SEC. 10115. BOATING INFRASTRUCTURE

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7515.
     Conference Substitute
       The Conference adopts the Senate version.


SEC. 10116. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF AMOUNTS FOR 
                      EXPENSES FOR ADMINISTRATION

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7516.
     Conference Substitute
       The Conference adopts the Senate version.


SEC. 10117. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO RICO, THE 
  DISTRICT OF COLUMBIA, GUAM, AMERICAN SOMOA, THE COMMONWEALTH OF THE 
            NORTHERN MARIANA ISLANDS, AND THE VIRGIN ISLANDS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7517.
     Conference Substitute
       The Conference adopts the Senate version.


           SEC. 10118. MULTISTATE CONSERVATION GRANT PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7518.
     Conference Substitute
       The Conference adopts the Senate version.


  SEC. 10119. EXPENDITURE OF REMAINING BALANCE IN BOAT SAFETY ACCOUNT

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7519.
     Conference Substitute
       The Conference adopts the Senate version.

             CHAPTER 2--CLEAN VESSEL ACT OF 1992 AMENDMENTS


                       SEC. 10131. GRANT PROGRAM

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7531.
     Conference Substitute
       The Conference adopts the Senate version.

       CHAPTER 3--RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS


                    SEC. 10141. TECHNICAL CORRECTION

     House Bill
       Sec. 1812.
       This section extinguishes all federal claims relating to 
     the donation and use of the Ex Competent (AFDM6), Unit 
     Identification Code number 13862. Further, the provision 
     gives Tanadgusix Corporation (TDX) title to the drydock free 
     and clear.
     Senate Bill
       No comparable provision.
     Conference Substitute
       The Conference adopts modified language that requires TDX 
     to transfer all rights, title and interest in and to the 
     vessel to GSA, consistent with the ruling by the 9th Circuit 
     Court of Appeals filed on April 21, 2005. GSA must then sell 
     the vessel at fair market value for use outside the United 
     States, and as a condition of that conveyance the vessel is 
     prohibited from ever operating in the United States. The 
     proposal also includes an authorization of appropriations for 
     $4,000,000. It is the intent of the Conference that nothing 
     in this section shall effect any lawsuits relating to the 
     transfer or use of the vessel, and that this section shall 
     not be applied retroactively.


                SEC. 10142. AVAILABILITY OF ALLOCATIONS

     House Bill
       No comparable provision in House bill.

[[Page H7517]]

     Senate Bill
       Sec. 7552.
     Conference Substitute
       The Conference adopts the Senate version.


  SEC. 10143. AUTHORIZATION OF APPROPRIATIONS FOR STATE RECREATIONAL 
                        BOATING SAFETY PROGRAMS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7553.
     Conference Substitute
       The Conference adopts the Senate version.

               Subtitle B--Other Miscellaneous Provisions


 SEC. 10201. NOTICE REGARDING PARTICIPATION OF SMALL BUSINESS CONCERNS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1830
       This provision requires the Secretary to give notice to 
     each State or political subdivisions of States to which he 
     awards a grant or other Federal funds of the criteria for 
     participation by a small business concern in any program or 
     project that is fund in any way by the Federal Government 
     under section 155 of the Small Business Reauthorization and 
     Manufacturing Assistance Act of 2004.
     Conference Substitute
       The Conference adopts the Senate provision.


                 SEC. 10202. EMERGENCY MEDICAL SERVICES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7218.
       This section would create a new section 407(a) of title 23 
     U.S.C. directing the Secretary of Transportation and the 
     Secretary of Homeland Security to establish jointly a Federal 
     Interagency Committee on Emergency Medical Services 
     (Interagency Committee). The purposes of the Interagency 
     Committee would be to, among other things, ensure 
     coordination among the Federal agencies involved with State, 
     local, tribal, or regional emergency medical services and 9-
     1-1 systems. This section also would provide funding to aid 
     the States in conducting coordinated emergency medical 
     services and 9-1-1 programs as described in this section.
       Conference Substitute
       The Conference adopts the Senate version with these 
     modifications: it does not create a new 407(a) section of 
     title 23, U.S.C. and does not provide funding for State 
     emergency medical services and 9-1-1 programs. It also adds 
     the Secretary of Health and Human Services as one of the 
     coordinators of the Interagency Committee, along with the 
     Secretary of Transportation and the Secretary of Homeland 
     Security.


                      SEC. 10203. HUBZONE PROGRAM

     House Bill
       Sec. 1821.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House version.


          SEC. 10204. CATASTROPHIC HURRICANE EVACUATION PLANS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 1834.
       This section requires the Secretary and the Secretary of 
     Homeland Security to develop a comprehensive plan for the 
     evacuation of the coastal areas for disasters that may occur.
     Conference Substitute
       The Conference adopts the Senate version.


        SEC. 10205. INTERMODAL TRANSPORTATION FACILITY EXPANSION

     House Bill
       Sec. 1827.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House version.


  SEC. 10206. ELIGIBILITY TO PARTICIPATE IN WESTERN ALASKA COMMUNITY 
                       DEVELOPMENT QUOTA PROGRAM

     House Bill
       Sec. 1825.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference adopts the House version.


           SEC. 10207. RAIL REHABILITATION AND BRIDGE REPAIR

     House Bill
       No comparable provision in House bill.
     Senate Bill
       No comparable provision in Senate bill.
     Conference Substitute
       The Conference authorizes such sums as may be necessary for 
     work on six shortline rail rehabilitation and bridge repair 
     projects in the State of Alabama for the period encompassing 
     fiscal year 2006 through 2010.


              SEC. 10208. RENTED OR LEASED MOTOR VEHICLES

     House Bill
       Sec. 1409
     Senate Bill
       No comparable language in Senate bill.
     Conference Substitute
       The Conference adopts the House version.

          Subtitle C--Specific Vehicle Safety-Related Rulings


      SEC. 10301. VEHICLE ROLLOVER PREVENTION AND CRASH MITIGATION

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7251.
       This section requires the Secretary to issue a set of 
     standards to reduce death and injuries caused by passenger 
     vehicle rollovers. To reduce rollovers, the rules will 
     establish performance criteria consistent with stability-
     enhancing technologies. To reduce complete or partial 
     ejection of occupants, the Secretary will establish 
     performance criteria that takes into account various ejection 
     mitigation systems, including consideration of advanced side 
     glazing, side air curtains, and side impact air bags. The 
     Secretary shall complete a rulemaking to upgrade door locks 
     and door retention. Finally, to better protect occupants 
     during a rollover, the Secretary shall upgrade existing roof 
     strength standards for the driver and passenger sides. The 
     bill includes deadlines for issuing these rules. If, however, 
     the statutory deadlines cannot be met, upon a notification to 
     Congress, the Secretary may establish a new deadline.
     Conference Substitute
       The Conference adopts the Senate version.


          SEC. 10302. SIDE-IMPACT CRASH PROTECTION RULEMAKING

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7252.
       This section requires NHTSA to issue a rulemaking by July 
     2008 that would require automobiles to better protect 
     passengers in a side-impact crash, and to conduct a study of 
     front-impact crashes within one year. The bill includes a 
     deadline for issuing this rule.
     Conference Substitute
       The Conference adopts the Senate version with the 
     modification that if the statutory deadlines cannot be met, 
     upon a notification to Congress, the Secretary may establish 
     a new deadline.


                       SEC. 10303. TIRE RESEARCH

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7253.
       This section requires the Secretary to submit a report to 
     Congress regarding research on tire aging.
     Conference Substitute
       The Conference adopts the Senate version.


        SEC. 10304. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7254.
       This section requires NHTSA to study technologies that 
     would reduce injuries and deaths caused by cars and trucks 
     backing up.
     Conference Substitute
       The Conference adopts the Senate version.


            SEC. 10305. NON-TRAFFIC INCIDENT DATA COLLECTION

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7255.
       This section requires NHTSA to conduct a study of non-
     traffic crashes, with the focus on persons injured or killed 
     due to a car backing up. NHTSA currently does not collect 
     this data on a regular basis because these injuries and 
     deaths occur in private driveways and parking lots, not on 
     public streets where data is currently collected.
     Conference Substitute
       The Conference adopts the Senate version.


           SEC. 10306. STUDY OF SAFETY BELT USE TECHNOLOGIES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7256.
       This section would repeal existing law that limits audible 
     seat belt reminders to no more than eight seconds and 
     requires the Secretary to conduct a study of advanced safety 
     belt reminder systems to help achieve further gains in safety 
     belt use.
     Conference Substitute
       The Conference adopts the Senate study, but does not adopt 
     the repeal of existing seat belt law.


     SEC. 10307. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE ACT

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7257.
       This section requires automobile safety ``star'' ratings 
     compiled by NHTSA's New Car Assessment Program (NCAP) for 
     front, side, and rollover resistance tests to be placed on 
     the window sticker of new automobiles.
     Conference Substitute
       The Conference adopts the Senate version with a 
     modification to make the provision effective on September 1, 
     2007.

[[Page H7518]]

                   SEC. 10308. POWER WINDOW SWITCHES

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7258.
       This section requires NHTSA to issue a rulemaking by April 
     2007 mandating power window switches in passenger automobiles 
     that raise the window only when the switch is pulled up or 
     out.
     Conference Substitute
       The Conference adopts the Senate version.


                  SEC. 10309. 15-PASSENGER VAN SAFETY

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7259.
       This section requires the Secretary to test 15-passenger 
     vans as part of the rollover resistance program of the NCAP 
     program and prohibits school systems from purchasing or 
     leasing new 15-passenger vans to transport children, unless 
     the van complies with motor vehicle standards prescribed for 
     school buses.
     Conference Substitute
       The Conference adopts the Senate version.


              SEC. 10310. AUTHORIZATION OF APPROPRIATIONS

     House Bill
       No comparable provision in House bill.
     Senate Bill
       Sec. 7262.
       This section authorizes funds for NHTSA to carry out this 
     subtitle, chapter 301 of title 49, and part C of title 49, 
     U.S.C.
     Conference Substitute
       The Conference adopts the Senate version.

    TITLE XI--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

                     I. Trust Fund Reauthorization

  A. Extension of Highway Trust Fund and Aquatic Resources Trust Fund 
Expenditure Authority and Related Taxes (sec. 10002 of the House bill, 
  secs. 5101 and 5102 of the Senate amendment, and secs. 4041, 4051, 
 4071, 4081, 4221, 4481, 4482, 4483, 6412, 9503, and 9504 of the Code)


              Present-Law Highway Trust Fund Excise Taxes

     In general
       Six separate excise taxes are imposed to finance the 
     Federal Highway Trust Fund program. Three of these taxes are 
     imposed on highway motor fuels. Historically, fuel taxes have 
     accounted for 90 percent of Highway Trust Fund receipts. The 
     remaining three are a retail sales tax on heavy highway 
     vehicles, a manufacturers' excise tax on heavy vehicle tires, 
     and an annual use tax on heavy vehicles. The six taxes are 
     summarized below. Except for 4.3 cents per gallon of the 
     Highway Trust Fund fuels tax rates, and a portion of the tax 
     on certain special motor fuels, all of these taxes, with the 
     exception of the heavy vehicle use tax, are scheduled to 
     expire after September 30, 2005.\1\ The 4.3-cents-per- gallon 
     portion of the fuels tax rates is permanent.\2\ The six taxes 
     are summarized below.
---------------------------------------------------------------------------
     \1\ The heavy vehicle use tax expires after September 30, 
     2006. Sec. 4481(f).
     \2\ This portion of the tax rates was enacted as a deficit 
     reduction measure in 1993. Receipts from it were retained in 
     the General Fund until 1997 legislation provided for their 
     transfer to the Highway Trust Fund.
---------------------------------------------------------------------------
     Highway motor fuels taxes
       The Highway Trust Fund motor fuels tax rates are as 
     follows: \3\
---------------------------------------------------------------------------
     \3\ These fuels also are subject to an additional 0.1-cent-
     per-gallon excise tax to fund the Leaking Underground Storage 
     Tank (``LUST'') Trust Fund (secs. 4041(d) and 4081(a)(2)(B)).
---------------------------------------------------------------------------
       Gasoline, 18.3 cents per gallon;
       Diesel fuel (including transmix) and kerosene, 24.3 cents 
     per gallon;
       Special motor fuels, 18.3 cents per gallon, generally.\4\
---------------------------------------------------------------------------
     \4\ The statutory rate for certain special motor fuels is 
     determined on an energy equivalent basis, as follows:
     Liquefied petroleum gas (propane), 13.6 cents per gallon (3.2 
     cents after September 30, 2005).
     Liquefied natural gas, 11.9 cents per gallon (2.8 cents after 
     September 30, 2005).
     Methanol derived from natural gas, 9.15 cents per gallon 
     (2.15 cents after September 30, 2005).
     Compressed natural gas, 48.54 cents per MCF.
     See secs. 4041(a)(2), 4041(a)(3) and 4041(m).
     The compressed natural gas tax rate is equivalent only to 4.3 
     cents per gallon of the rate imposed on gasoline and other 
     special motor fuels rather than the full 18.3-cents-per-
     gallon rate. The tax rate for the other special motor fuels 
     is equivalent to the full 18.3-cents-per-gallon gasoline and 
     special motor fuels tax rate.
---------------------------------------------------------------------------

                               Exemptions

       Present law includes numerous exemptions (including partial 
     exemptions) for specified uses of taxable fuels or for 
     specified fuels. Because the gasoline and diesel fuel taxes 
     generally are imposed before the end use of the fuel is 
     known, many exemptions are realized through refunds to end 
     users of tax paid by a taxpayer earlier in the distribution 
     chain. Exempt uses and fuels include:
        use in State and local government and nonprofit 
     educational organization highway vehicles;
        use in buses engaged in transporting students and 
     employees of schools;
        use in local mass transit buses having a seating 
     capacity of at least 20 adults (not including the driver) 
     when the buses operate under contract with (or are subsidized 
     by) a State or local governmental unit to furnish the 
     transportation; and
        use in intercity buses serving the general public 
     along scheduled routes. (Such use is totally exempt from the 
     gasoline excise tax and is exempt from 17 cents per gallon of 
     the diesel fuel tax.)
       In addition, fuels used in off-highway business use or on a 
     farm for farming purposes generally are exempt from these 
     motor fuels taxes.\5\ The Highway Trust Fund does not receive 
     excise taxes imposed on fuel used in off-highway activities. 
     Rather, when tax is imposed on off-highway use fuel 
     consumption, it is used to finance other Trust Funds (e.g., 
     motorboat gasoline and special motor fuel taxes from non-
     business off-highway use dedicated to the Aquatic Resources 
     Trust Fund) or is retained in the General Fund (e.g., tax on 
     diesel fuel used in trains).
---------------------------------------------------------------------------
     \5\ Diesel fuel is the same fuel (#2 fuel oil) as that 
     commonly used as home heating oil. Fuel oil used as heating 
     oil is not subject to the Federal excise tax.
---------------------------------------------------------------------------
     Non-fuel Highway Trust Fund excise taxes
       In addition to the highway motor fuels excise tax revenues, 
     the Highway Trust Fund receives revenues produced by three 
     excise taxes imposed exclusively on heavy highway vehicles or 
     tires. These taxes are:
        a 12-percent excise tax imposed on the first 
     retail sale of heavy highway vehicles, tractors, and trailers 
     (generally, trucks having a gross vehicle weight in excess of 
     33,000 pounds and trailers having such a weight in excess of 
     26,000 pounds) (sec. 4051);
        an excise tax imposed on highway tires with a 
     rated load capacity exceeding 3,500 pounds, generally at a 
     rate of 9.45 cents per 10 pounds of excess (sec. 4071(a)); 
     and
        an annual use tax imposed on highway vehicles 
     having a taxable gross weight of 55,000 pounds or more (sec. 
     4481). (The maximum rate for this tax is $550 per year, 
     imposed on vehicles having a taxable gross weight over 75,000 
     pounds.)


         Present-Law Highway Trust Fund Expenditure Provisions

     In general
       Dedication of excise tax revenues to the Highway Trust Fund 
     and expenditures from the Highway Trust Fund are governed by 
     provisions of the Code.\6\ The Code authorizes expenditures 
     (subject to appropriations) from the Fund through July 30, 
     2005, for the purposes provided in authorizing legislation, 
     as in effect on the date of enactment of the Surface 
     Transportation Extension Act of 2005, Part V.
---------------------------------------------------------------------------
     \6\ Sec. 9503. The Highway Trust Fund statutory provisions 
     were placed in the Internal Revenue Code in 1982.
---------------------------------------------------------------------------
       Under present law, revenues from the highway excise taxes 
     generally are dedicated to the Highway Trust Fund. However, 
     under section 9503(c)(2), certain transfers are made from the 
     Highway Trust Fund into the General Fund, relating to amounts 
     paid in respect of gasoline used on farms, amounts paid in 
     respect of gasoline used for certain nonhighway purposes or 
     by local transit systems, amounts relating to fuels not used 
     for taxable purposes, and income tax credits for certain uses 
     of fuels.
     Highway Trust Fund expenditure purposes
       The Highway Trust Fund has a subaccount for Mass Transit. 
     Both the Trust Fund and its sub-account are funding sources 
     for specific programs. Neither the Highway Trust Fund nor its 
     Mass Transit sub-account receive interest on unexpended 
     balances. The Highway Fund's Mass Transit sub-account 
     receives 2.86 cents per gallon of highway motor fuels excise 
     taxes.
       Highway Trust Fund expenditure purposes have been revised 
     with each authorization Act enacted since establishment of 
     the Highway Trust Fund in 1956. In general, expenditures 
     authorized under those Acts (as the Acts were in effect on 
     the date of enactment of the most recent such authorizing 
     Act) are approved by the Code as Highway Trust Fund 
     expenditure purposes.\7\ Thus, no Highway Trust Fund monies 
     may be spent for a purpose not approved by the tax-writing 
     committees of Congress. The Code provides that authority to 
     make expenditures from the Highway Trust Fund expires after 
     July 30, 2005. Thus, no Highway Trust Fund expenditures may 
     occur after July 30, 2005.
---------------------------------------------------------------------------
     \7\ The authorizing Acts which currently are referenced in 
     the Highway Trust Fund provisions of the Code are: the 
     Highway Revenue Act of 1956; Titles I and II of the Surface 
     Transportation Assistance Act of 1982; the Surface 
     Transportation and Uniform Relocation Act of 1987; the 
     Intermodal Surface Transportation Efficiency Act of 1991; and 
     the Transportation Equity Act for the 21st Century; the 
     Surface Transportation Extension Act of 2003; the Surface 
     Transportation Extension Act of 2004; the Surface 
     Transportation Extension Act of 2004 Part II; the Surface 
     Transportation Extension Act of 2004, Part III; the Surface 
     Transportation Extension Act of 2004, Part IV; the Surface 
     Transportation Extension Act of 2004, Part V; the Surface 
     Transportation Extension Act of 2005; the Surface 
     Transportation Extension Act of 2005, Part II; the Surface 
     Transportation Extension Act of 2005, Part III; the Surface 
     Transportation Extension Act of 2005, Part IV; and the 
     Surface Transportation Extension Act of 2005, Part V.
---------------------------------------------------------------------------
     Anti-deficit provisions (the ``Harry Byrd rule'')
       Highway projects can take multiple years to complete. As a 
     result, the Highway Trust Fund carries positive unexpended 
     balances, a large portion of which are reserved to cover 
     existing obligations.\8\ Highway Trust Fund spending is 
     limited by anti-deficit provisions internal to the Highway 
     Trust Fund, the so-called ``Harry Byrd rule.'' Generally, the

[[Page H7519]]

     Harry Byrd rule prevents the further obligation of Federal 
     highway funds if the current and expected balances of the 
     Highway Trust Fund fall below a certain level. The rule 
     requires the Treasury Department to determine, on a quarterly 
     basis, the amount (if any) by which unfunded highway 
     authorizations exceed projected net Highway Trust Fund tax 
     receipts for the 24-month period beginning at the close of 
     each fiscal year.\9\ Similar rules apply to unfunded Mass 
     Transit Account authorizations. If unfunded authorizations 
     exceed projected 24-month receipts, apportionments to the 
     States for specified programs funded by the relevant Trust 
     Fund Account are to be reduced proportionately. Because of 
     the Harry Byrd rule, taxes dedicated to the Highway Trust 
     Fund typically are scheduled to expire at least 24 months 
     after current authorizing Acts.
---------------------------------------------------------------------------
     \8\ Congressional Research Service, RL 32226, Highway and 
     Transit Program Reauthorization Legislation in the 2nd 
     Session, 108th Congress (December 15, 2004) at CRS-12.
     \9\ Sec. 9503(d).
---------------------------------------------------------------------------
       The Surface Transportation Extension Act of 2003, created a 
     temporary rule (through February 29, 2004) for purposes of 
     the anti-deficit provisions of the Highway Trust Fund. For 
     purposes of determining 24 months of projected revenues for 
     the anti-deficit provisions, the Secretary of the Treasury is 
     instructed to treat each expiring provision relating to 
     appropriations and transfers to the Highway Trust Fund to 
     have been extended through the end of the 24-month period and 
     to assume that the rate of tax during such 24-month period 
     remains at the same rate in effect on the date of enactment 
     of the provision. The temporary rule has been continuously 
     extended since February 29, 2004. The last extension, enacted 
     as part of the Surface Transportation Extension Act of 2005, 
     Part V, extended the rule through July 30, 2005.
     Limitations on transfers to the Highway Trust Fund
       The Code also contains a special enforcement provision to 
     prevent expenditure of Highway Trust Fund monies for purposes 
     not authorized in section 9503.\10\ Should such unapproved 
     expenditures occur, no further excise tax receipts will be 
     transferred to the Highway Trust Fund. Rather, the taxes will 
     continue to be imposed with receipts being retained in the 
     General Fund. This enforcement provision provides 
     specifically that it applies not only to unauthorized 
     expenditures under the current Code provisions, but also to 
     expenditures pursuant to future legislation that does not 
     amend section 9503's expenditure authorization provisions or 
     otherwise authorize the expenditure as part of a revenue Act.
---------------------------------------------------------------------------
     \10\ Sec. 9503(b)(6).
---------------------------------------------------------------------------
     Interrelationship of the Highway Trust Fund and the Aquatic 
         Resources Trust Fund
       The Aquatic Resources Trust Fund is funded by a portion of 
     the receipts from the excise taxes imposed on motorboat 
     gasoline and special motor fuels and on gasoline used as a 
     fuel in the nonbusiness use of small-engine outdoor power 
     equipment. A portion of these taxes are transferred into the 
     Highway Trust Fund and then retransferred into the Aquatic 
     Resources Trust Fund. As a result, transfers to the Aquatic 
     Resources Trust Fund are governed in part by Highway Trust 
     Fund provisions.\11\
---------------------------------------------------------------------------
     \11\ Secs. 9503(c)(4) and 9503(c)(5).
---------------------------------------------------------------------------
       A total tax rate of 18.4 cents per gallon is imposed on 
     gasoline and special motor fuels used in motorboats and on 
     gasoline used as a fuel in the nonbusiness use of small-
     engine outdoor power equipment. Of this rate, 0.1 cent per 
     gallon is dedicated to the Leaking Underground Storage Tank 
     Trust Fund. Of the remaining 18.3 cents per gallon, 4.8 cents 
     per gallon are retained in the General Fund. The balance of 
     13.5 cents per gallon is transferred to the Highway Trust 
     Fund and then retransferred to the Aquatic Resources Trust 
     Fund and the Land and Water Conservation Fund, as follows.
       The Aquatic Resources Trust Fund is comprised of two 
     accounts, the Boat Safety Account and the Sport Fish 
     Restoration Account. Motorboat fuel taxes, not exceeding $70 
     million per year, are transferred to the Boat Safety Account. 
     In addition, these transfers are subject to an overall annual 
     limit equal to an amount that will not cause the Boat Safety 
     Account to have an unobligated balance in excess of $70 
     million. To the extent there are excess motorboat fuel taxes, 
     the next $1 million per year of motorboat fuel taxes is 
     transferred from the Highway Trust Fund to the Land and Water 
     Conservation Fund provided for in Title I of the Land and 
     Water Conservation Fund Act of 1965. The balance of the 
     motorboat fuel taxes in the Highway Trust Fund is transferred 
     to the Sport Fish Restoration Account.
       The Sport Fish Restoration Account also receives 13.5 cents 
     per gallon of the small-engine fuel taxes from the Highway 
     Trust Fund. This Account is also funded with receipts from an 
     ad valorem manufacturers' excise tax on sport fishing 
     equipment.
       The retention in the General Fund of 4.8 cents per gallon 
     of taxes on fuel used in motorboats and in the nonbusiness 
     use of small-engine outdoor power equipment expires with 
     respect to taxes imposed after September 30, 2005.
       The expenditure authority for the Aquatic Resources Trust 
     Fund expires after July 30, 2005.


                               House Bill

       The expenditure authority for the Highway Trust Fund and 
     Aquatic Resources Trust Fund is extended through September 
     30, 2009. The Code provisions governing the purposes for 
     which monies in the Highway Trust Fund may be spent are 
     modified to include the reauthorization bill.
       The provision also extends the motor fuel taxes and all 
     three non-fuel excise taxes at their current rates through 
     September 30, 2011.
       The provision does not extend the retention in the General 
     Fund of 4.8 cents per gallon of taxes on fuel used in 
     motorboats and in the nonbusiness use of small-engine outdoor 
     power equipment.
       Effective date.--The House bill is effective on the date of 
     enactment.


                            Senate Amendment

       The Senate amendment generally follows the House bill, but 
     extends the retention in the General Fund of 4.8 cents per 
     gallon of taxes on fuel used in motorboats and in the 
     nonbusiness use of small-engine outdoor power equipment 
     through September 30, 2011.
       The Senate amendment also authorizes expenditures from the 
     Highway Trust Fund for highway use tax evasion projects. 
     Specifically, for fiscal years 2006 through 2009, the 
     Internal Revenue Service is to receive $120 million for the 
     enforcement of fuel tax compliance, including the 
     precertification of tax-exempt users, and $80 million for the 
     excise fuel information reporting system, of which $40 
     million is to be allocated to the excise summary terminal 
     activity reporting system. In addition, for each of the 
     fiscal years 2006 through 2009, $50 million is authorized for 
     the Federal Highway Administration to allocate $1 million to 
     each State to combat fuel tax evasion on the State level.
       The Senate amendment also changes the Harry Byrd rule from 
     a 24-month to a 48-month receipt rule. Under the Senate 
     amendment, the Harry Byrd rule is not triggered unless 
     unfunded highway authorizations exceed projected net Highway 
     Trust Fund tax receipts for the 48-month period beginning at 
     the close of each fiscal year. For purposes of the 48-month 
     rule, taxes are assumed extended beyond their expiration 
     date.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement follows the House bill with the 
     following modifications. The expenditure authority for the 
     Highway Trust Fund expires after September 29, 2009 (after 
     September 30, 2009, in the case of expenditures for 
     administrative purposes, and expenditures from the Mass 
     Transit Account).
       The conference agreement changes the Harry Byrd rule from a 
     24-month to a 48-month receipt rule. Under the conference 
     agreement, the Harry Byrd rule is not triggered unless 
     unfunded highway authorizations exceed projected net Highway 
     Trust Fund tax receipts for the 48-month period beginning at 
     the close of each fiscal year. For purposes of the 48-month 
     rule, taxes are assumed extended beyond their expiration 
     date.
       The conference agreement does not extend the General Fund 
     retention of taxes on fuel used in motorboats and in the 
     nonbusiness use of small-engine outdoor power equipment. The 
     conference agreement addresses authorization of expenditures 
     for fuel tax compliance elsewhere in the conference agreement 
     and does not amend the Code for this purpose.

                II. Excise Tax Reform and Simplification

                        A. Highway Excise Taxes

 1. Modify gas guzzler tax (sec. 5201 of the Senate amendment and sec. 
                           4064 of the Code)


                              Present Law

       Under present law, the Code imposes a tax (``the gas 
     guzzler tax'') on automobiles that are manufactured primarily 
     for use on public streets, roads, and highways and that are 
     rated at 6,000 pounds unloaded gross vehicle weight or 
     less.\12\ The tax applies to limousines without regard to the 
     weight requirement. The tax is imposed on the sale by the 
     manufacturer of each automobile of a model type with a fuel 
     economy of 22.5 miles per gallon or less. The tax range 
     begins at $1,000 and increases to $7,700 for models with a 
     fuel economy less than 12.5 miles per gallon.
---------------------------------------------------------------------------
     \12\ Sec. 4064.
---------------------------------------------------------------------------
       Emergency vehicles and non-passenger automobiles are exempt 
     from the tax. The tax also does not apply to non-passenger 
     automobiles. The Secretary of Transportation determines which 
     vehicles are ``non-passenger'' automobiles, thereby exempting 
     these vehicles from the gas guzzler tax based on regulations 
     in effect on the date of enactment of the gas guzzler 
     tax.\13\ Hence, vehicles defined in Title 49 C.F.R. sec. 
     523.5 (relating to light trucks) are exempt. These vehicles 
     include those designed to transport property on an open bed 
     (e.g., pick-up trucks) or provide greater cargo-carrying than 
     passenger carrying volume including the expanded cargo-
     carrying space created through the removal of readily 
     detachable seats (e.g., pick-up trucks, vans, and most 
     minivans, sports utility vehicles and station wagons). 
     Additional vehicles that meet the ``non-passenger'' 
     requirements are those with at least four of the following 
     characteristics: (1) an angle of approach of not less than 28 
     degrees; (2) a breakover angle of not less than 14 degrees; 
     (3) a departure angle of not less than 20 degrees; (4) a 
     running clearance of not less than 20 centimeters; and (5) 
     front and rear axle clearances of not less than 18 
     centimeters each. These vehicles would include many sports 
     utility vehicles.
---------------------------------------------------------------------------
     \13\ Sec. 4064(b)(1)(B).
---------------------------------------------------------------------------


                               House Bill

       No provision.

[[Page H7520]]

                            Senate Amendment

       The Senate amendment repeals the tax as it applies to 
     limousines rated at greater than 6,000 pounds unloaded gross 
     vehicle weight.
       Effective date.--The Senate amendment is effective on 
     October 1, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment 
     provision.
     2. Exclusion for tractors weighing 19,500 pounds or less from 
         excise tax on heavy trucks and trailers (sec. 5202 of the 
         Senate amendment and sec. 4051 of the Code)


                              Present Law

       A 12-percent excise tax is imposed on the first retail sale 
     of automobile truck chassis and bodies, truck trailer and 
     semitrailer chassis and bodies, and tractors of the kind 
     chiefly used for highway transportation in combination with a 
     trailer or semitrailer.\14\ The tax does not apply to 
     automobile truck chassis and bodies suitable for use with a 
     vehicle which has a gross vehicle weight of 33,000 pounds or 
     less.\15\ The tax also does not apply to truck trailer and 
     semitrailer chassis and bodies suitable for use with a 
     trailer or semitrailer which has a gross vehicle weight of 
     26,000 pounds or less.\16\ In general, tractors are subject 
     to tax regardless of their gross vehicle weight.
---------------------------------------------------------------------------
     \14\ Sec. 4051(a)(1).
     \15\ Sec. 4051(a)(2).
     \16\ Sec. 4051(a)(3).
---------------------------------------------------------------------------
       Temporary Treasury regulations provide that ``tractor'' 
     means a highway vehicle which is primarily designed to tow a 
     vehicle, such as a trailer or semitrailer, but which does not 
     carry cargo on the same chassis as the engine. The 
     regulations presume that a vehicle equipped with air brakes 
     and/or towing package is primarily designed as a tractor.\17\ 
     The regulations further require an incomplete chassis cab to 
     be treated as a tractor if it is equipped with any of the 
     safety devices listed in the regulations, and require that it 
     be treated as a truck if it is not equipped with any of the 
     listed safety devices and the purchaser certifies in writing 
     that the vehicle will not be equipped for use as a 
     tractor.\18\
---------------------------------------------------------------------------
     \17\ Temp. Treas. Reg. sec. 145.4051-1(e)(1)(i).
     \18\ Temp. Treas. Reg. sec. 145.4051-1(e)(1)(ii).
---------------------------------------------------------------------------
       In Freightliner of Grand Rapids, Inc. v. U.S., the district 
     court held that certain vehicles primarily designed to tow 
     large RV trailers but which had some cargo carrying capacity 
     on their chassis are properly characterized as tractors.\19\ 
     The court also held that incomplete chassis cabs that do not 
     include any of the listed safety devices are to be treated as 
     tractors unless the purchaser certifies in writing that it 
     will not equip the vehicles for use as tractors. Under the 
     holding of this case, these types of vehicles are subject to 
     tax regardless of their gross vehicle weight.
---------------------------------------------------------------------------
     \19\ 351 F.Supp.2d 718 (W.D. Mich. 2004).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment excludes from tax tractors with a 
     gross vehicle weight of 19,500 pounds or less.
       Effective date.--The Senate amendment is effective for 
     sales after September 30, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment 
     except that it also requires that in order to be exempt the 
     gross combined weight (as determined by the Secretary) of the 
     tractor if combined with a towed vehicle (such as trailer or 
     semi-trailer) would not exceed 33,000 pounds. No inference is 
     intended from this provision regarding the proper 
     classification of vehicles as tractors or trucks.
     3. Exemption for bulk beds from excise tax on retail sale of 
         heavy trucks and trailers (sec. 5203 of the Senate 
         amendment)


                              Present Law

       The Code imposes a 12-percent excise tax on the first 
     retail sale of heavy trucks and trailers (chassis and 
     bodies).\20\ Under present law, the tax on the first retail 
     sale of automobile truck bodies does not apply to any body 
     primarily designed: (1) to process or prepare seed, feed, or 
     fertilizer for use on farms; (2) to haul feed, seed, or 
     fertilizer to and on farms; (3) to spread feed, seed, or 
     fertilizer on farms; (4) to load or unload feed, seed, or 
     fertilizer on farms; or (5) for any combination of the 
     foregoing.\21\
---------------------------------------------------------------------------
     \20\ Sec. 4051(a).
     \21\ Sec. 4053(2).
---------------------------------------------------------------------------
       The IRS has issued various rulings in this area. In Revenue 
     Ruling 69-579, the IRS found that a truck body used primarily 
     for hauling animal and poultry feed to and unloading it on 
     farms qualified for exemption because the built-in equipment 
     was elaborate and expensive. Thus, the IRS concluded that the 
     nature of the unloading systems made it impractical to 
     purchase the bodies for use other than in hauling feed, seed, 
     or fertilizer to and unloading it on farms.
       In 1975, the IRS ruled as not exempt a dump truck designed 
     for and used primarily in hauling grain and sugar beets from 
     the field to points on or off the farm but which may also be 
     used to haul feed or fertilizer from a distribution point 
     over the highway to the farm. The ruling concluded that 
     bodies that are used for the general hauling of feed, seed, 
     or fertilizer over the highway are subject to the tax unless 
     they have specific features that indicate they are primarily 
     designed to haul feed, seed, or fertilizer to and on farms. 
     In this case, although feed and fertilizer were among the 
     commodities that the dump truck could be used for, it did not 
     have specific features to indicate that it was primarily 
     designed to haul feed, seed, or fertilizer to and on 
     farms.\22\
---------------------------------------------------------------------------
     \22\ Rev. Rul. 75-462.
---------------------------------------------------------------------------
       In 1990, the IRS issued a technical advice memorandum 
     (``the 1990 TAM'') that concluded that a type of truck bought 
     by farmers to haul seed potatoes, sugar beets, grain, and 
     other farm products qualified for exemption.\23\ Each model 
     had a full-length, powered conveyor belt that was designed to 
     support and unload the cargo; a powered rear discharge door 
     to control the discharge rate of the cargo; and a standard 
     universal motor mount to which an electric drive could be 
     mounted. In that ruling, the IRS noted the special unloading 
     equipment was elaborate and expensive, added substantially to 
     the cost and weight of each body, and limited its load-
     carrying capabilities.
---------------------------------------------------------------------------
     \23\ Tech. Adv. Mem. 9126001, 1991 WL 778984 (1991).
---------------------------------------------------------------------------
       In 1999, the IRS revoked the 1990 TAM prospectively, noting 
     that the exemption was not intended to cover truck bodies 
     designed for general use, even if capable of hauling feed, 
     seed, or fertilizer to and on farms.\24\ The IRS noted that 
     the sales literature indicated that the body was designed to 
     be versatile for hauling potatoes, beets, and small grains. 
     The IRS also observed that unlike the bodies described in 
     Rev. Rul. 69-579, which would not be purchased for use other 
     than in hauling feed, seed, or fertilizer, the bodies at 
     issue are designed for general hauling of farm cargo. 
     Further, the IRS found that the presence of a conveyor belt 
     was equally useful for unloading a crop at market as it is 
     for unloading feed, etc. on a farm. Thus, the IRS concluded 
     that the truck body was not primarily designed for an exempt 
     purpose.
---------------------------------------------------------------------------
     \24\ Tech. Adv. Mem. 199904038, 1999 WL 36828 (1999).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment exempts bulk beds used for 
     transporting farm crops to and on farms from the excise tax 
     on the retail sale of heavy trucks and trailers if sold to a 
     person who certifies to the seller that such person is 
     actively engaged in the trade or business of farming and the 
     primary use of the bulk bed is to haul to and on farms farm 
     crops grown in connection with such trade or business. The 
     Senate amendment provides for the recapture of the tax from 
     the purchaser upon resale of within two years of the first 
     retail sale, or if such purchaser makes substantial nonexempt 
     use of the article.
       Effective date.--The Senate amendment is effective for 
     sales after September 30, 2005.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     4. Volumetric excise tax credit for alternative fuels (sec. 
         5204 of the Senate amendment and secs. 4041, 4101, 6426, 
         and 6427 of the Code)


                              Present Law

       Under section 4081 of the Code, an excise tax is imposed 
     upon (1) the removal of any taxable fuel from a refinery or 
     terminal, (2) the entry of any taxable fuel into the United 
     States, or (3) the sale of any taxable fuel to any person who 
     is not registered with the IRS to receive untaxed fuel, 
     unless there was a prior taxable removal or entry.\25\ The 
     tax does not apply to any removal or entry of taxable fuel 
     transferred in bulk by pipeline or vessel to a terminal or 
     refinery if the person removing or entering the taxable fuel, 
     the operator of such pipeline or vessel, and the operator of 
     such terminal or refinery are registered with the 
     Secretary.\26\ Section 4081 also imposes an excise tax on 
     taxable fuel removed or sold by the blender of the fuels.\27\ 
     However, the blender is entitled to a credit on any tax 
     previous paid if that person establishes the amount of such 
     tax.\28\ A ``taxable fuel'' is gasoline, diesel fuel 
     (including any liquid, other than gasoline, which is suitable 
     for use as a fuel in a diesel-powered highway vehicle or 
     train), and kerosene.\29\
---------------------------------------------------------------------------
     \25\ Sec. 4081(a)(1).
     \26\ Sec. 4081(a)(1)(B).
     \27\ Sec. 4081(b)(1). Blended taxable fuel is a taxable fuel 
     that is produced outside the bulk transfer/terminal system by 
     mixing taxpayer fuel with respect to which tax has been 
     imposed under section 4041(a)(1) or 4081(a) (other than 
     taxable fuel for which a credit or payment has been allowed); 
     and any other liquid on which tax has not been imposed under 
     section 4081. Treas. Reg. sec. 48.4081-1(c)(i).
     \28\ Sec. 4081(b)(2).
     \29\ Sec. 4083(a).
---------------------------------------------------------------------------
       Diesel fuel and kerosene generally are taxed at 24.3 cents 
     per gallon excise (aviation-grade kerosene at 21.8 cents per 
     gallon). Gasoline is taxed at 18.3 cents per gallon and 
     aviation gasoline is taxed at 19.3 cents per gallon.
       The Code imposes a backup retail tax for diesel fuel and 
     kerosene not taxed under section 4081, and for special motor 
     fuels.\30\ Under section 4041, tax is imposed on special 
     motor fuels (any liquid other than gas oil, fuel oil or any 
     product taxable under section 4081) when there is a taxable 
     sale by any person to an owner, lessee or other operator of a 
     motor vehicle or motorboat, for use as fuel in the motor 
     vehicle or motorboat or used by any person as a fuel in a 
     motor vehicle or motorboat unless there was a prior taxable 
     sale.\31\
---------------------------------------------------------------------------
     \30\ Sec. 4041.
     \31\ Sec. 4041(a)(2).
---------------------------------------------------------------------------
       Most special motor fuels are subject to tax at 18.3 cents 
     per gallon, however, certain special motor fuels and 
     compressed natural gas

[[Page H7521]]

     are determined on an energy equivalent basis, as follows:
       Liquefied petroleum gas (propane), 13.6 cents per gallon.
       Liquefied natural gas, 11.9 cents per gallon.
       Methanol derived from petroleum or natural gas, 9.15 cents 
     per gallon.
       Compressed natural gas, 48.54 cents per MCF.
       Liquid hydrogen is a special motor fuel for purposes of the 
     tax on special motor fuels and is subject to a tax of 18.3 
     cents per gallon.\32\ Compressed hydrogen gas used or sold as 
     a fuel is not subject to tax.
---------------------------------------------------------------------------
     \32\ An additional 0.1 cent per gallon is imposed by section 
     4041(d) for the Leaking Underground Storage Tank Trust Fund.
---------------------------------------------------------------------------
       Prior to the American Jobs Creation Act of 2004, gasohol 
     and gasoline to be blended into gasohol was taxed at a 
     reduced rate based on the amount of ethanol contained in the 
     mixture (e.g., 10 percent, 7.7 percent or 5.5 percent alcohol 
     in the mixture). The Act eliminated reduced rates of excise 
     tax for most alcohol-blended fuels. In place of the reduced 
     rates, the Act amended the Code to create two new excise tax 
     credits: the alcohol fuel mixture credit and the biodiesel 
     mixture credit.\33\ The sum of these credits may be taken 
     against the tax imposed on taxable fuels (by section 4081). A 
     person may also file a claim for payment equal to the amount 
     of these credits for biodiesel or alcohol used to produce an 
     eligible mixture.\34\ The credits and payments are paid out 
     of the General Fund. If the alcohol is ethanol with a proof 
     of 190 or greater, the credit or payment amount is 51 cents 
     per gallon. For agri-biodiesel, the credit or payment amount 
     is $1.00 per gallon; for biodiesel other than agri-biodiesel, 
     the credit or payment amount is 50 cents per gallon. Under 
     the Code's coordination rules, a claim may be taken only once 
     with respect to any particular gallon of alcohol or 
     biodiesel.
---------------------------------------------------------------------------
     \33\ Sec. 6426. The Act also created an income tax credit for 
     biodiesel and biodiesel mixtures. Sec. 40A.
     \34\ Sec. 6427(e).
---------------------------------------------------------------------------
       No excise tax credit is available for the blending or sale 
     of special motor fuels.


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, P Series fuels (as defined by 
     the Secretary of Energy under 42 U.S.C. sec. 13211(2)) are 
     taxed at 18.3 cents per gallon under section 4081. Compressed 
     natural gas and hydrogen are taxed at 18.3 cents per energy 
     equivalent of a gallon of gasoline, and liquefied natural 
     gas, any liquid fuel (other than methanol or ethanol) derived 
     from coal and liquid hydrocarbons derived from biomass are 
     taxed at 24.3 cents per gallon under section 4081. 
     Collectively, these fuels are referred to as ``alternative 
     fuels.''
       In addition, the Senate amendment creates two new excise 
     tax credits, the alternative fuel credit, and the alternative 
     fuel mixture credit. The credits are allowed against section 
     4081 liability. The alternative fuel credit is 50 cents per 
     gallon of alternative fuel or gasoline gallon equivalents of 
     nonliquid alternative fuel sold by the taxpayer for use as a 
     motor fuel in a highway vehicle. The alternative fuel mixture 
     credit is 50 cents per gallon of alternative fuel used in 
     producing an alternative fuel mixture for sale or use in a 
     trade or business of the taxpayer. The mixture must be sold 
     by the taxpayer for use as a fuel in a highway vehicle or 
     used by the taxpayer as a fuel in a highway vehicle. Liquid 
     fuel derived from coal would only qualify for the credits if 
     derived from the Fischer-Tropsch process. The credits 
     generally expire after September 30, 2009. The proposal also 
     allows persons to file a claim for payment equal to the 
     amount of the alternative fuel credit and alternative fuel 
     mixture credits. These payment provisions generally also 
     expire after September 30, 2009. Both credits and payments 
     are made out of the General Fund. Under coordination rules, a 
     claim for payment or credit may only be taken once with 
     respect to any particular gallon or gasoline-gallon 
     equivalent of alternative fuel.
       Effective date.--The Senate amendment is effective for any 
     sale, use or removal for any period after September 30, 2006.


                          Conference Agreement

       The conference agreement follows the Senate amendment with 
     the following modifications.
       Under the conference agreement, liquefied petroleum gas and 
     P Series fuels (as defined by the Secretary of Energy under 
     42 U.S.C. sec. 13211(2)) are taxed at 18.3 cents per gallon 
     under section 4041. Compressed natural gas is taxed at 18.3 
     cents per energy equivalent of a gallon of gasoline. 
     Liquefied natural gas, any liquid fuel derived from coal 
     (other than ethanol or methanol) and liquid hydrocarbons 
     derived from biomass are taxed at 24.3 cents per gallon under 
     section 4041. The conference agreement does not change the 
     tax treatment of hydrogen, liquefied hydrogen remains subject 
     to the tax imposed by section 4041.
       In addition, the conference agreement creates two new 
     excise tax credits, the alternative fuel credit, and the 
     alternative fuel mixture credit. For this purpose, the term 
     ``alternative fuel'' means liquefied petroleum gas, P Series 
     fuels (as defined by the Secretary of Energy under 42 U.S.C. 
     sec. 13211(2)), compressed or liquefied natural gas, 
     liquefied hydrogen, liquid fuel derived from coal through the 
     Fisher-Tropsch process, and liquid hydrocarbons derived from 
     biomass. Such term does not include ethanol, methanol, or 
     biodiesel.
       The alternative fuel credit is allowed against section 4041 
     liability and the alternative fuel mixture credit is allowed 
     against section 4081 liability. Neither credit is allowed 
     unless the taxpayer is registered with the Secretary. The 
     alternative fuel credit is 50 cents per gallon of alternative 
     fuel or gasoline gallon equivalents \35\ of nonliquid 
     alternative fuel sold by the taxpayer for use as a motor fuel 
     in a motor vehicle or motorboat, or so used by the taxpayer.
---------------------------------------------------------------------------
     \35\ ``Gasoline gallon equivalent'' means, with respect to 
     any nonliquid alternative fuel, the amount of such fuel 
     having a Btu content of 124,800 (higher heating value).
---------------------------------------------------------------------------
       The alternative fuel mixture credit is 50 cents per gallon 
     of alternative fuel used in producing an alternative fuel 
     mixture for sale or use in a trade or business of the 
     taxpayer. The mixture must be sold by the taxpayer producing 
     such mixture to any person for use as a fuel or used by the 
     taxpayer for use as a fuel.\36\ The credits generally expire 
     after September 30, 2009. The provision also allows persons 
     to file a claim for payment equal to the amount of the 
     alternative fuel credit and alternative fuel mixture credits. 
     These payment provisions generally also expire after 
     September 30, 2009. With respect to liquefied hydrogen, the 
     credit and payment provisions expire after September 30, 
     2014. Both credits and payments are made out of the General 
     Fund. Under coordination rules, a claim for payment or credit 
     may only be taken once with respect to any particular gallon 
     or gasoline-gallon equivalent of alternative fuel.
---------------------------------------------------------------------------
     \36\ For example, the taxpayer produces fish oil in its trade 
     or business. The taxpayer uses this fish oil to make a blend 
     of 50 percent fish oil and 50 percent diesel fuel to run in a 
     generator that is part of the taxpayer's trade or business. 
     This use of the fish oil-diesel blend made by the taxpayer 
     qualifies as use of an alternative fuel mixture for purposes 
     of the requirement that the fuel be used in the blender's 
     trade or business.
---------------------------------------------------------------------------
       Effective date.--The provision is effective for any sale or 
     use for any period after September 30, 2006.

                        B. Aquatic Excise Taxes

     1. Eliminate Aquatic Resources Trust Fund and transform Sport 
         Fish Restoration Account (sec. 5211 of the Senate 
         amendment and secs. 9503 and 9504 of the Code)


                              Present Law

       A total tax rate of 18.4 cents per gallon is imposed on 
     gasoline and special motor fuels used in motorboats, and on 
     gasoline used as a fuel in the nonbusiness use of small-
     engine outdoor power equipment.\37\ Of this rate, 0.1 cent 
     per gallon is dedicated to the Leaking Underground Storage 
     Tank Trust Fund. Of the remaining 18.3 cents per gallon, tax 
     collected in excess of 13.5 cents per gallon (i.e., 4.8 cents 
     per gallon) is retained in the General Fund of the 
     Treasury.\38\ The balance is transferred to the Highway Trust 
     Fund, and retransferred (except with respect to amounts 
     transferred to the fund for land and water conservation, as 
     described below) to the Aquatic Resources Trust Fund.\39\ The 
     taxes on gasoline and special motor fuels used in motorboats 
     and the taxes on gasoline used as a fuel in the nonbusiness 
     use of small-engine outdoor power equipment are collected 
     under the same rules as apply to the Highway Trust Fund 
     collections generally.
---------------------------------------------------------------------------
     \37\ Sec. 4081(a)(2).
     \38\ The retention in the General Fund of the 4.8 cents a 
     gallon of motorboat fuel taxes and taxes on gasoline used as 
     a fuel in the nonbusiness use of small-engine outdoor power 
     equipment expires after September 30, 2005.
     \39\ Sec. 9503(c)(4). Between October 1, 2001 and September 
     30, 2003, the amount transferred to the Highway Trust Fund 
     was 13 cents per gallon. Prior to October 1, 2001, the amount 
     transferred was 11.5 cents per gallon. Sec. 9503(b)(4)(D). 
     The transfers from the Highway Trust Fund to the Aquatic 
     Resources Trust Fund of amounts of taxes received on gasoline 
     used as a fuel in the nonbusiness use of small-engine outdoor 
     power equipment expires after September 30, 2005. Sec. 
     9503(c)(5).
---------------------------------------------------------------------------
       The Aquatic Resources Trust Fund is comprised of two 
     accounts.\40\ First, the Boat Safety Account is funded by a 
     portion of the receipts from the excise tax imposed on 
     motorboat gasoline and special motor fuels. Transfers to the 
     Boat Safety Account are limited to amounts not exceeding $70 
     million per year. In addition, these transfers are subject to 
     an overall annual limit equal to an amount that will not 
     cause the Boat Safety Account to have an unobligated balance 
     in excess of $70 million.\41\
---------------------------------------------------------------------------
     \40\ Sec. 9504(a).
     \41\ Sec. 9503(c)(4)(A). Funding of the Boat Safety Account 
     is scheduled to expire after September 30, 2005.
---------------------------------------------------------------------------
       Second, the Sport Fish Restoration Account receives the 
     balance of the motorboat gasoline and special motor fuels 
     receipts that are transferred to the Aquatic Resources Trust 
     Fund.\42\ The Sport Fish Restoration Account is also funded 
     with receipts from an excise tax on sport fishing equipment 
     sold by the manufacturer, producer or importer. The excise 
     tax rate on sport fishing equipment is 10 percent of the 
     sales price; the rate is reduced to 3 percent for electric 
     outboard motors and fishing tackle

[[Page H7522]]

     boxes.\43\ Examples of the items of sport fishing equipment 
     subject to the 10-percent rate include fishing rods and 
     poles, fishing reels, fly fishing lines and certain other 
     fishing lines, fishing spears, spear guns, spear tips, items 
     of terminal tackle, containers designed to hold fish, fishing 
     vests, landing nets, and portable bait containers.\44\ In 
     addition, import duties on certain fishing tackle, yachts and 
     pleasure craft are transferred into the Sport Fish 
     Restoration Account.
---------------------------------------------------------------------------
     \42\ After funding of the Boat Safety Account, remaining 
     motorboat fuel taxes, not exceeding $1,000,000 during any 
     fiscal year, are transferred from the Highway Trust Fund into 
     the land and water conservation fund provided in Title I of 
     the Land and Water Conservation Fund Act of 1965. Sec. 
     9503(c)(4)(B). After the transfer to the land and water 
     conservation fund, motorboat fuel taxes remaining in the 
     Highway Trust Fund are transferred to the Sport Fish 
     Restoration Account. Sec. 9503(c)(4)(C).
     \43\ Sec. 4161(a)(2) and 4161(a)(c)(3).
     \44\ Items of ``sport fishing equipment'' are enumerated in 
     section 4162(a).
---------------------------------------------------------------------------
       The amounts of taxes on gasoline used as a fuel in the 
     nonbusiness use of small-engine outdoor power equipment that 
     are transferred to the Highway Trust Fund and retransferred 
     to the Aquatic Resources Trust Fund are directed to a 
     separate sub-account of the Sport Fish Restoration Account, 
     the Coastal Wetlands Sub-Account.
       Expenditures from the Boat Safety Account are subject to 
     annual appropriations. Amounts transferred, paid, or credited 
     to the Sport Fish Restoration Account (including the Coastal 
     Wetlands Sub-Account) are authorized to be appropriated for 
     the uses authorized in the expenditure provisions.\45\
---------------------------------------------------------------------------
     \45\ Act of August 9, 1950, 64 Stat. 430 (codified at 16 
     U.S.C. sec. 777 et seq.) (''An Act to provide that the United 
     States shall aid the States in fish restoration and 
     management projects, and for other purposes,'' commonly 
     referred to as the Dingell-Johnson Sport Fish Restortation 
     Act.).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment eliminates the Aquatic Resources Trust 
     Fund and future transfers to the Boat Safety Account and 
     transforms the Sport Fish Restoration Account into the Sport 
     Fish Restoration and Boating Trust Fund. After funding of the 
     land and water conservation fund as under present law, the 
     balance of the taxes on motorboat fuels is transferred from 
     the Highway Trust Fund into the Sport Fish Restoration and 
     Boating Trust Fund. In addition, the transfers from the 
     Highway Trust Fund to the Sport Fish Restoration and Boating 
     Trust Fund of amounts of taxes on gasoline used as a fuel in 
     the nonbusiness use of small-engine outdoor power 
     equipment are extended through September 30, 2011.
       Existing amounts in the Boat Safety Account, plus interest 
     accrued on interest-bearing obligations of such account, are 
     made available as provided under expenditure provisions.\46\ 
     The expenditure provisions also authorize the appropriation 
     of amounts in the Sport Fish Restoration and Boating Trust 
     Fund, including for boating safety, for the uses authorized 
     in the expenditure provisions.
---------------------------------------------------------------------------
     \46\ The expenditure provisions are codified at 16 U.S.C. 
     sec. 777 et seq., as may be amended by the Sportfishing and 
     Recreational Boating Safety Act of 2005.
---------------------------------------------------------------------------
       Effective date.--The Senate amendment is effective October 
     1, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     2. Repeal of harbor maintenance tax on exports (sec. 5212 of 
         the Senate amendment and sec. 4461 of the Code)


                              Present Law

       The Code contains provisions imposing a 0.125-percent 
     excise tax on the value of most commercial cargo loaded or 
     unloaded at U.S. ports (other than ports included in the 
     Inland Waterway Trust Fund system). The tax also applies to 
     amounts paid for passenger transportation using these U.S. 
     ports. Exemptions are provided for (1) cargo donated for 
     overseas use, (2) cargo shipped between the U.S. mainland and 
     Alaska (except for crude oil), Hawaii, and/or U.S. 
     possessions and (3) cargo shipped between Alaska, Hawaii, 
     and/or U.S. possessions. Receipts from this tax are deposited 
     in the Harbor Maintenance Trust Fund.
       The U.S. Supreme Court has held that the harbor maintenance 
     excise tax is unconstitutional as applied to exported cargo 
     because it violates the ``Export Clause'' of the U.S. 
     Constitution.\47\ The tax remains in effect for imported 
     cargo. Imposition of the tax on passenger transportation with 
     respect to passengers on cruises that originate, stop, or 
     terminate, at U.S. ports has been upheld.
---------------------------------------------------------------------------
     \47\ United States Shoe Corp. v. United States, 523 U.S. 360, 
     118 S. Ct. 1290, 140 L. Ed. 2d 453 (1998).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment conforms the Code to the Supreme Court 
     decision and exempts exported commercial cargo from the 
     harbor maintenance tax.
       Effective date.--The Senate amendment is effective before, 
     on, and after the date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     3. Cap on excise tax on certain fishing equipment (sec. 5213 
         of the Senate amendment and sec. 4161 of the Code)


                              Present Law

       In general, the Code imposes a 10-percent tax on the sale 
     by the manufacturer, producer, or importer of specified sport 
     fishing equipment.\48\ A three-percent rate, however, applies 
     to the sale of electric outboard motors and fishing tackle 
     boxes.\49\ Sport fishing equipment subject to the 10-percent 
     tax includes fishing rods and poles, fishing reels, fly 
     fishing lines, and other fishing lines not over 130 pounds 
     test, fishing spears, spear guns, and spear tips, and tackle 
     items including leaders, artificial lures, artificial baits, 
     artificial flies, fishing hooks, bobbers, sinkers, snaps, 
     drayles, and swivels. In addition the following fishing 
     supplies and accessories are subject to the 10-percent tax: 
     fish stringers; creels; bags, baskets, and other containers 
     designed to hold fish; portable bait containers; fishing 
     vests; landing nets; gaff hooks; fishing hook disgorgers; 
     dressing for fishing lines and artificial flies; fishing tip-
     ups and tilts; fishing rod belts, fishing rodholders; fishing 
     harnesses; fish fighting chairs; and fishing outriggers and 
     downriggers.
---------------------------------------------------------------------------
     \48\ Sec. 4161(a)(1).
     \49\ Sec. 4161(a)(2) and 4161(a)(3).
---------------------------------------------------------------------------
       Revenues from the excise tax on sport fishing equipment are 
     deposited in the Sport Fish Restoration Account of the 
     Aquatic Resources Trust Fund. Monies in the fund are spent, 
     subject to an existing permanent appropriation, to support 
     Federal-State sport fish enhancement and safety programs.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment provides that the tax applicable to a 
     fishing rod or fishing pole is the lesser of 10 percent or 
     $10.00.
       Effective date.--The Senate amendment is effective for 
     articles sold by the manufacturer, producer, or importer 
     after September 30, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment.

                         C. Aerial Excise Taxes

     1. Clarification of excise tax exemptions for agricultural 
         aerial applicators and exemption for fixed-wing aircraft 
         engaged in forestry operations (sec. 5221 of the Senate 
         amendment and secs. 4261 and 6420 of the Code)


                              Present Law

       Excise taxes are imposed on aviation gasoline (19.4 cents 
     per gallon) and jet fuel (21.9 cents per gallon).\50\ All but 
     0.1 cent per gallon of the revenues from these taxes are 
     dedicated to the Airport and Airway Trust Fund. The remaining 
     0.1 cent per gallon rate is imposed for the Leaking 
     Underground Storage Tank Trust Fund.
---------------------------------------------------------------------------
     \50\ Sec. 4081.
---------------------------------------------------------------------------
       Fuel used on a farm for farming purposes is a nontaxable 
     use. Aerial applicators (crop dusters) are allowed to claim a 
     refund instead of farm owners and operators in the case of 
     aviation gasoline if the owners or operators give written 
     consent to the aerial applicators.\51\ This provision applies 
     only to fuel consumed in the airplane while operating over 
     the farm, i.e., fuel consumed traveling to and from the farm 
     is not exempt.
---------------------------------------------------------------------------
     \51\ Sec. 6420(c)(4)).
---------------------------------------------------------------------------
       Air passenger transportation is subject to an excise tax 
     equal to 7.5 percent of the amount paid plus $3.20 per 
     domestic flight segment.\52\ The tax on transportation by air 
     does not apply to air transportation by helicopter if the 
     helicopter is used for (1) the exploration, or the 
     development or removal of oil, gas, or hard minerals 
     exploration, or (2) certain timber operations (planting, 
     cultivating, cutting, transporting, or caring for trees, 
     including logging operations).\53\ The exemption applies only 
     when the helicopters are not using the Federally funded 
     airport and airway services. Helicopters and fixed-wing 
     aircraft providing emergency medical services also are exempt 
     from the air passenger tax regardless of the type of airport 
     and airway services used.\54\
---------------------------------------------------------------------------
     \52\ Sec. 4261(a) and 4261(b).
     \53\ Sec. 4261(f).
     \54\ Sec. 4261(g).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       With regard to the exemption for aerial applicators, 
     written consent from the farm owner or operator is no longer 
     needed for the aerial applicator to claim exemption for 
     aviation gasoline. The exemption also is expanded to include 
     fuels consumed when flying between the farms where chemicals 
     are applied and the airport where the airplane takes off and 
     lands. The present exemption for helicopters engaged in 
     timber operations is expanded to include fixed-wing aircraft 
     if such aircraft are not using the Federally funded airport 
     and airway services.
       Effective date.--The Senate amendment is effective for fuel 
     use or air transportation after September 30, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     2. Modify the definition of rural airport (sec. 5222 of the 
         Senate amendment and sec. 4261 of the Code)


                              Present Law

       Air passenger transportation is subject to an excise tax 
     equal to 7.5 percent of the amount paid plus $3.20 per 
     domestic flight segment.\55\ The $3.20 tax on flight segments 
     does not apply to a domestic segment beginning or ending at a 
     rural airport.
---------------------------------------------------------------------------
     \55\ Sec. 4261(a) and 4261(b).
---------------------------------------------------------------------------
       With respect to any calendar year, a rural airport is an 
     airport that had fewer than

[[Page H7523]]

     100,000 passengers departing by air during the second 
     preceding calendar year for such airport and such airport 
     either (1) is not located within 75 miles of a larger airport 
     (one that had at least 100,000 passengers departing in the 
     second preceding calendar year), or (2) was receiving 
     essential air service subsidy payments as of August 5, 1997.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment expands the definition of qualified 
     rural airport to include an airport that (1) is not connected 
     by paved roads to another airport and (2) had fewer than 
     100,000 commercial passengers departing by air on flight 
     segments of at least 100 miles during the second preceding 
     calendar year.
       Effective date.--The Senate amendment is effective on 
     October 1, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     3. Exempt from ticket taxes transportation provided by 
         seaplanes (sec. 5223 of the Senate amendment and secs. 
         4261 and 4083 of the Code)


                              Present Law

       Air passenger transportation is subject to an excise tax 
     equal to 7.5 percent of the amount paid plus $3.20 per 
     domestic flight segment (``air passenger tax'').\56\ A 6.25-
     percent tax is imposed on amounts paid for transportation of 
     property by air (``air cargo tax'').\57\ The air cargo tax 
     applies only to amounts paid to persons engaged in the 
     business of transporting property by air for hire. The air 
     passenger tax and air cargo tax do not apply to amounts paid 
     for the transportation if furnished on an aircraft having a 
     maximum certificated takeoff weight of 6,000 pounds or less 
     unless the aircraft is operated on an established line.\58\
---------------------------------------------------------------------------
     \56\ Sec. 4261(a) and 4261(b).
     \57\ Sec. 4271.
     \58\ Sec. 4281.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment provides that the air passenger tax 
     and the air cargo tax do not apply to 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 
     Airway Trust Fund.
       Effective date.--The Senate amendment is effective for 
     transportation beginning after September 30, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment but 
     clarifies that for purposes of the fuel taxes, transportation 
     by seaplane is treated as noncommercial aviation.
     4. Exempt certain sightseeing flights from taxes on air 
         transportation (sec. 5224 of the Senate amendment and 
         sec. 4281 of the Code)


                              Present Law

       Under present law, taxable aviation transportation is 
     subject to a 7.5-percent excise tax on the price of an 
     airline ticket and a $3.20 segment tax. An exception to these 
     taxes is provided for transportation by an aircraft having a 
     maximum certificated takeoff weight of 6,000 pounds or less 
     except when the aircraft is operated on an established line. 
     Under the Treasury regulations to be ``operated on an 
     established line'' means to be operated with ``some degree of 
     regularity between definite points. The term implies that the 
     air carrier maintains control over the direction, routes, 
     time, number of passengers carried, etc.'' \59\ Treasury 
     regulations provide that transportation need not be between 
     two definite points to be taxable: a payment for continuous 
     transportation beginning and ending at the same point is 
     subject to the tax.\60\ The IRS position is that the words 
     ``between definite points'' do not require two separate 
     points for purposes of determining whether an aircraft is 
     operated on an established line. At least one court has 
     agreed.\61\
---------------------------------------------------------------------------
     \59\ Treas. Reg. sec. 49.4263-5(c).
     \60\ Treas. Reg. sec. 49.4261-1(c).
     \61\ Lake Mead Air Inc. v. United States, 991 F. Supp. 1209 
     (D. Nev. 1997) (the court determined that aircraft flights 
     providing scenic tours of the Grand Canyon were operated on 
     an established line).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       For purposes of the exemption for small aircraft operated 
     on nonestablished lines, an aircraft operated on a flight, 
     the sole purpose of which is sightseeing, will not be 
     considered as operated on an established line.
       Effective date.--The Senate amendment is effective with 
     respect to transportation beginning after September 30, 2005, 
     but does not apply to any amount paid before such date for 
     such transportation.


                          Conference Agreement

       The conference agreement follows the Senate amendment.

                      D. Taxes Relating to Alcohol

     1. Repeal special occupational taxes on producers and 
         marketers of alcoholic beverages (sec. 5231 of the Senate 
         amendment and secs. 5081, 5091, 5111, 5112, 5113, 5117, 
         5121, 5122, 5123, 5125, 5131, 5132, 5141, 5147, 5148, and 
         5276 of the Code)


                              Present Law

       Under the law in effect prior to July 1, 2005, special 
     occupational taxes are imposed on producers and others 
     engaged in the marketing of distilled spirits, wine, and 
     beer. These excise taxes are imposed as part of a broader 
     Federal tax and regulatory structure governing the production 
     and marketing of alcoholic beverages. The special 
     occupational taxes are payable annually, on July 1 of each 
     year. The tax rates in effect prior to July 1, 2005 are as 
     follows:
       Producers: \62\
---------------------------------------------------------------------------
     \62\ A reduced rate of tax in the amount of $500.00 is 
     imposed on small proprietors (as defined in the Code) (secs. 
     5081(b) and 5091(b)).
---------------------------------------------------------------------------
       Distilled spirits and wines (sec. 5081),\63\ $1,000 per 
     year, per premise.
---------------------------------------------------------------------------
     \63\ Proprietors of plants producing distilled spirits 
     exclusively for fuel use, with annual production not 
     exceeding 10,000 proof gallons, are exempt. Secs. 5081(c) and 
     5181(c)(4).
---------------------------------------------------------------------------
       Brewers (sec. 5091) $1,000 per year, per premise.
       Wholesale dealers (sec. 5111): Liquors, wines, or beer $500 
     per year.
       Retail dealers (sec. 5121): Liquors, wines, or beer $250 
     per year.
       Nonbeverage use of distilled spirits (sec. 5131): $500 per 
     year.
       Industrial use of distilled spirits (sec. 5276): $250 per 
     year.
       Section 246(a) of the American Jobs Creation Act of 2004 
     suspends the special occupational tax for the period 
     beginning July 1, 2005 and ending June 30, 2008.\64\
---------------------------------------------------------------------------
     \64\ See sec. 5148.
---------------------------------------------------------------------------
       Every person engaged in a trade or business on which a 
     special occupational tax is imposed is required to register 
     with the Secretary.\65\ In addition, every dealer in liquors, 
     wine or beer is required to keep records of their 
     transactions.\66\ A dealer is any person who sells, or offers 
     for sale, distilled spirits, wine, or beer.\67\ A delegate of 
     the Secretary of the Treasury is authorized to inspect the 
     records of any dealer during business hours.\68\ There are 
     penalties for failing to comply with the recordkeeping 
     requirements.\69\ There are also registration and regulation 
     requirements for the nonbeverage use of distilled spirits, 
     and permit and recordkeeping requirements for the industrial 
     use of distilled spirits.\70\
---------------------------------------------------------------------------
     \65\ Secs. 5141 and 7011. The registration is of such 
     person's name or style, place of residence, trade or 
     business, and the place where such trade or business is to be 
     carried on.
     \66\ Secs. 5114 and 5124.
     \67\ Sec. 5112(a). Such definition includes producers and, in 
     general, proprietors of warehouses.
     \68\ Sec. 5146.
     \69\ Sec. 5603.
     \70\ Secs. 5132 and 5275.
---------------------------------------------------------------------------
       The Code limits the persons from whom dealers may purchase 
     their liquor stock intended for resale. A dealer may only 
     purchase from:
       1. A wholesale dealer in liquors who has paid the special 
     occupational tax as such dealer to cover the place where such 
     purchase is made; or
       2. A wholesale dealer in liquors who is exempt, at the 
     place where such purchase is made, from payment of such tax 
     under any provision of chapter 51 of the Code; or
       3. A person who is not required to pay special occupational 
     tax as a wholesale dealer in liquors.\71\
---------------------------------------------------------------------------
     \71\ Sec. 5117. For example, purchases from a proprietor of a 
     distilled spirits plant at his principal business office 
     would be covered under item (2) since such a proprietor is 
     not subject to the special occupational tax on account of 
     sales at his principal business office (sec. 5113(a)). 
     Purchases from a State-operated liquor store would be covered 
     under item (3) (sec. 5113(b)).
---------------------------------------------------------------------------
       Violation of this restriction in punishable by $1,000 fine, 
     imprisonment of one year, or both.\72\ A violation also 
     subjects the alcohol to seizure and forfeiture.\73\
---------------------------------------------------------------------------
     \72\ Sec. 5687.
     \73\ Sec. 7302.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment repeals the special occupational taxes 
     on producers and marketers of alcoholic beverages and on the 
     nonbeverage or industrial use of distilled spirits. The 
     registration, recordkeeping and inspection rules applicable 
     to wholesale and retail dealers are retained.\74\ For 
     purposes of the recordkeeping requirements for wholesale and 
     retail liquor dealers, the Senate amendment provides a 
     rebuttable presumption that a person who sells, or offers for 
     sale, distilled spirits, wine, or beer, in quantities of 20 
     wine gallons or more to the same person at the same time is 
     engaged in the business of a wholesale dealer in liquors or a 
     wholesale dealer in beer. In addition, the Senate amendment 
     retains the present-law rules that make it unlawful for any 
     liquor dealer to purchase distilled spirits for resale from 
     any person other than a wholesale liquor dealer subject to 
     the recordkeeping requirements, or a proprietor of a 
     distilled spirits plant subject to recordkeeping 
     requirements.\75\ Existing general criminal penalties

[[Page H7524]]

     relating to records and reports apply to wholesalers and 
     retailers who fail to comply with these requirements.
---------------------------------------------------------------------------
     \74\ The provision also retains the present-law registration 
     and regulation requirements for the nonbeverage use of 
     distilled spirits, and the permit and recordkeeping 
     requirements for the industrial use of distilled spirits.
     \75\ Proprietors of distilled spirits plants remain subject 
     to present law recordkeeping requirements under section 5207. 
     Under present law, a limited retail dealer in liquors (such 
     as a charitable organization selling liquor at a picnic) may 
     lawfully purchase distilled spirits for resale from a retail 
     dealer in distilled spirits. The provision retains this rule.
---------------------------------------------------------------------------
       Effective date.--The Senate amendment is effective on July 
     1, 2008. The provision does not affect liability for taxes 
     imposed with respect to periods before July 1, 2008.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     2. Modify limitation on rate of rum excise tax cover over to 
         Puerto Rico and Virgin Islands (sec. 5232 of the Senate 
         amendment)


                              Present Law

       A $13.50 per proof gallon \76\ excise tax is imposed on 
     distilled spirits produced in or imported (or brought) into 
     the United States.\77\ The excise tax does not apply to 
     distilled spirits that are exported from the United States, 
     including exports to U.S. possessions (e.g., Puerto Rico and 
     the Virgin Islands).\78\
---------------------------------------------------------------------------
     \76\ A proof gallon is a liquid gallon consisting of 50 
     percent alcohol. See sec. 5002(a)(10) and 5002(a)(11).
     \77\ Sec. 5001(a)(1).
     \78\ Secs. 5062(b), 7653(b), and 7653(c).
---------------------------------------------------------------------------
       The Code provides for cover over (payment) to Puerto Rico 
     and the Virgin Islands of the excise tax imposed on rum 
     imported (or brought) into the United States, without regard 
     to the country of origin.\79\ The amount of the cover over is 
     limited under Code section 7652(f) to $10.50 per proof gallon 
     ($13.25 per proof gallon during the period July 1, 1999 
     through December 31, 2005).
---------------------------------------------------------------------------
     \79\ Secs. 7652(a)(3), 7652(b)(3), and 7652(e)(1). One 
     percent of the amount of excise tax collected from imports 
     into the United States of articles produced in the Virgin 
     Islands is retained by the United States under section 
     7652(b)(3).
---------------------------------------------------------------------------
       Tax amounts attributable to shipments to the United States 
     of rum produced in Puerto Rico are covered over to Puerto 
     Rico. Tax amounts attributable to shipments to the United 
     States of rum produced in the Virgin Islands are covered over 
     to the Virgin Islands. Tax amounts attributable to shipments 
     to the United States of rum produced in neither Puerto Rico 
     nor the Virgin Islands are divided and covered over to the 
     two possessions under a formula.\80\ Amounts covered over to 
     Puerto Rico and the Virgin Islands are deposited into the 
     treasuries of the two possessions for use as those 
     possessions determine.\81\ All of the amounts covered over 
     are subject to the limitation.
---------------------------------------------------------------------------
     \80\ Sec. 7652(e)(2).
     \81\ Secs. 7652(a)(3), (b)(3), and 7652(e)(1).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, the cover over amount of $13.25 
     per proof gallon is modified to $13.50 for rum brought into 
     the United States after December 31, 2005 and before January 
     1, 2007. After December 31, 2006, the cover over amount 
     reverts to $10.50 per proof gallon.
       The Senate amendment additionally requires that Puerto Rico 
     transfers a portion of the amount covered over to Puerto Rico 
     to the Puerto Rico Conservation Trust Fund (the 
     ``Fund'').\82\ The treasury of Puerto Rico is required to 
     transfer to the Fund amounts equal to 50 cents per proof 
     gallon of the taxes covered over to Puerto Rico, and 
     attributable to rum imported into the United States that was 
     produced neither in Puerto Rico nor the Virgin Islands. The 
     transfers are required to be made within 30 days of each such 
     cover over payment to Puerto Rico. Each transfer payment is 
     to be treated as principal for an endowment, the income from 
     which is to be used by the Fund for the purposes for which 
     the Fund was established. If Puerto Rico fails to make a 
     timely payment to the Trust Fund, the Secretary of the 
     Treasury shall deduct and withhold such unpaid amount from 
     the next cover over payment, plus interest, and shall 
     transfer such amounts directly to the Fund. Such deduction, 
     withholding, and direct payment will not be made if the 
     Secretary of the Interior, after consultation with the 
     Governor of Puerto Rico, finds that the failure of the 
     treasury of Puerto Rico to make the transfer payment was for 
     good cause. The transfer requirement expires after December 
     31, 2006.
---------------------------------------------------------------------------
     \82\ The Puerto Rico Conservation Trust Fund was established 
     pursuant to a Memorandum of Understanding, dated December 24, 
     1968, between the United States Department of the Interior 
     and the Commonwealth of Puerto Rico.
---------------------------------------------------------------------------
       Effective date.--The change in the cover over rate is 
     effective for articles brought into the United States after 
     December 31, 2005. The Senate amendment regarding the Puerto 
     Rico Conservation Trust Fund is effective January 1, 2006.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     3. Provide an income tax credit for cost of carrying tax-paid 
         distilled spirits in wholesale inventories and in control 
         State bailment warehouses (sec. 5233 of the Senate 
         amendment and new sec. 5011 of the Code)


                              Present Law

       As is true of most major Federal excise taxes, the excise 
     tax on distilled spirits is imposed at a point in the chain 
     of distribution before the product reaches the retail 
     (consumer) level. The excise tax on distilled spirits 
     produced in the United States is imposed when the distilled 
     spirits are removed from the distilled spirits plant where 
     they are produced. Distilled spirits that are bottled before 
     importation into the United States are taxed on removal from 
     the first U.S. customs bonded warehouse to which they are 
     landed (including a warehouse located in a foreign trade 
     zone). Distilled spirits imported in bulk containers for 
     bottling in the United States may be transferred to a 
     domestic distilled spirits plant without payment of tax; 
     subsequently, these distilled spirits are taxed in the same 
     way as domestically produced distilled spirits.
       No tax credits are allowed under present law for business 
     costs associated with having tax-paid products in inventory. 
     Rather, excise tax that is included in the purchase price of 
     a product is treated the same as the other components of the 
     product cost, i.e., deductible as a cost of goods sold.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment creates a new income tax credit for 
     eligible wholesalers, distillers, and importers, of distilled 
     spirits. The credit is in addition to present-law 
     rules allowing tax included in inventory costs to be 
     deducted as a cost of goods sold, and is treated as part 
     of the general business credits.
       The credit is calculated by multiplying the number of cases 
     of bottled distilled spirits by the average tax-financing 
     cost per case for the most recent calendar year ending before 
     the beginning of such taxable year. A case is 12 80-proof 
     750-milliliter bottles. The average tax-financing cost per 
     case is the amount of interest that would accrue at corporate 
     overpayment rates during an assumed 60-day holding period on 
     an assumed tax rate of $25.68 per case of 12 80-proof 750-
     milliliter bottles.
       The wholesaler credit only applies to domestically bottled 
     distilled spirits \83\ purchased directly from the bottler of 
     such spirits. An eligible wholesaler is any person that holds 
     a permit under the Federal Alcohol Administration Act as a 
     wholesaler of distilled spirits that is not a State, or 
     agency or political subdivision thereof.
---------------------------------------------------------------------------
     \83\ Distilled spirits that are imported in bulk and then 
     bottled domestically qualify as domestically bottled 
     distilled spirits.
---------------------------------------------------------------------------
       For distillers and importers that are not eligible 
     wholesalers, the credit is limited to bottled inventory in a 
     warehouse owned and operated by, or on behalf of, a State or 
     political subdivision thereof, when title to such inventory 
     has not passed unconditionally. The credit for distillers and 
     importers applies to distilled spirits bottled both 
     domestically and abroad.
       Effective date.--The Senate amendment is effective for 
     taxable years beginning after September 30, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     4. Quarterly excise tax filing for small alcohol excise 
         taxpayers (sec. 5234 of the Senate amendment and sec. 
         5061 of the Code)


                              Present Law

       In general, excise taxes on distilled spirits, wines, and 
     beers are collected on the basis of returns filed in 
     accordance with rules prescribed by the Secretary of the 
     Treasury.\84\ In the case of distilled spirits, beer, and 
     wine withdrawn under bond for deferred payment of tax 
     (``deferred payment bond''), domestic producers are generally 
     required to pay alcohol excise taxes within 14 days after the 
     last day of the semi-monthly period during which the article 
     is withdrawn.\85\ In the case of distilled spirits, wines, 
     and beer which are imported into the United States (other 
     than in bulk containers), the importer is generally required 
     to pay alcohol excise taxes within 14 days after the last day 
     of the semi-monthly period during which the article is 
     entered into the customs territory of the United States.\86\ 
     In the case of imported articles entered for warehousing, the 
     taxes are generally due within 14 days after the last day of 
     the semi-monthly period during which the article is removed 
     from the first such warehouse.\87\ Treasury regulations also 
     permit certain very small wine producers to file and pay on 
     an annual basis.\88\
---------------------------------------------------------------------------
     \84\ Sec. 5061(a).
     \85\ Sec. 5061(d)(1).
     \86\ Sec. 5061(d)(2)(A).
     \87\ Sec. 5061(d)(2)(B).
     \88\ Annual filing and payment is permitted to a wine 
     producer who has not given a deferred payment bond, and who 
     either paid wine excise taxes in an amount less than $1,000 
     during the previous calendar year or is a proprietor of a new 
     bonded wine premise and expects to pay less than $1,000 in 
     wine excise taxes before the end of the calendar year. 27 CFR 
     sec. 24.273(a).
---------------------------------------------------------------------------
       Special rules apply to accelerate payments made with 
     respect to taxes allocable to the second half of the month of 
     September.\89\
---------------------------------------------------------------------------
     \89\ Sec. 5061(d)(4).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, domestic producers and 
     importers of distilled spirits, wine, and beer with excise 
     tax liability of $50,000 or less attributable to such 
     articles in the preceding calendar year may file returns and 
     pay taxes within 14 days after the end of the calendar 
     quarter instead of semi-monthly. In order to qualify, the 
     taxpayer's liability for such taxes during the immediately 
     preceding year must have been $50,000 or less, and, as of the 
     beginning of the current

[[Page H7525]]

     calendar year, the taxpayer must reasonably expect to pay 
     less than $50,000 in such taxes for that year. The Senate 
     amendment does not apply to a taxpayer for any portion of the 
     calendar year following the first date on which the aggregate 
     amount of tax due for that year exceeds the $50,000 
     threshold.
       The special rules accelerating payments for taxes allocable 
     to the second half of September do not apply to quarterly 
     filers under the Senate amendment.
       Very small wine producers who have not given deferred 
     payment bonds may still file and pay on an annual basis as 
     under present law.
       Effective date.--The Senate amendment is effective for 
     quarterly periods beginning on and after January 1, 2006.


                          Conference Agreement

       The conference agreement follows the Senate amendment with 
     the clarification that quarterly filing and payment applies 
     only to withdrawals, removals, and entries (and articles 
     brought into the United States from Puerto Rico) under 
     deferred payment bonds. Transactions that are not made under 
     deferred payment bonds do not qualify for quarterly filing 
     and payment, but do count toward determining whether the 
     $50,000 threshold has been reached.

                         E. Sport Excise Taxes

     1. Custom gunsmiths (sec. 5241 of the Senate amendment and 
         sec. 4182 of the Code)


                              Present Law

       The Code imposes an excise tax upon the sale by the 
     manufacturer, producer or importer of certain firearms and 
     ammunition.\90\ Pistols and revolvers are taxable at 10 
     percent. Firearms (other than pistols and revolvers), shells, 
     and cartridges are taxable at 11 percent. The excise tax for 
     firearms imposed on manufacturers, producers, and importers 
     does not apply to machine guns and short barreled firearms. 
     Sales to the Defense Department of firearms, pistols, 
     revolvers, shells and cartridges also are exempt from the 
     tax.
---------------------------------------------------------------------------
     \90\ Sec. 4181.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment exempts from the firearms excise tax 
     firearms, pistols, and revolvers manufactured, produced, or 
     imported by a person who manufactures, produces, and imports 
     less than 50 of such articles during the calendar year. 
     Controlled groups are treated as a single person for 
     determining the 50-article limit.
       Effective date.--The Senate amendment is effective for 
     articles sold by the manufacturer, producer, or importer 
     after September 30, 2005. No inference is intended from the 
     prospective effective date of this provision as to the proper 
     treatment of pre-effective date sales.


                          Conference Agreement

       The conference agreement follows the Senate amendment.

                     III. MISCELLANEOUS PROVISIONS

     A. Motor Fuel Tax Enforcement Advisory Commission (sec. 5301 
         of the Senate amendment)


                              Present Law

       Present law does not require that there be an advisory 
     commission on motor tax fuel enforcement.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment establishes a ``Motor Fuel Tax 
     Enforcement Advisory Commission'' (the ``Commission''). The 
     purpose of the Commission is to: (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 fuel taxes; (5) review the results Federal and 
     State agency cooperative efforts regarding motor fuel taxes; 
     and (6) review the results of Federal interagency cooperative 
     efforts regarding motor fuel taxes. The Commission also is to 
     evaluate and make recommendations regarding: (1) the 
     effectiveness of existing Federal enforcement programs 
     regarding motor fuel taxes; (2) enforcement personnel 
     allocation; and (3) proposals for regulatory projects, 
     legislation, and funding.
       The Commission is to be composed of the following:
       1. At least one 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;
       2. At least one representative from the Federation of State 
     Tax Administrators;
       3. At least one representative from any State Department of 
     Transportation;
       4. Two representatives from the highway construction 
     industry;
       5. Six representatives from industries relating to fuel 
     distribution: refiners (two representatives), distributors 
     (one representative), pipelines (one representative), 
     terminal operators (two representatives);
       6. One representative from the retail fuel industry; and
       7. Two representatives each from the staff of the Senate 
     Committee on Finance and the House Committee on Ways and 
     Means.
       Members of the Commission are to be appointed by the 
     Chairmen and Ranking Members of the Senate Committee on 
     Finance and the House Committee on Ways and Means. 
     Representatives from the Department of Treasury and the IRS 
     shall be available to consult with the Commission upon 
     request. The Commission is to terminate after September 30, 
     2009.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment.

B. National Surface Transportation Infrastructure Financing Commission 
                  (sec. 5302 of the Senate amendment)


                              Present Law

       Present law does not provide for any advisory commissions 
     related Federal highway or mass transit funding.


                               House Bill

       No provision.


                            Senate Amendment

       The provision establishes a ``National Surface 
     Transportation Infrastructure Financing Commission'' (the 
     ``Financing Commission''). The Financing Commission is to be 
     composed of 15 members drawn from among individuals 
     knowledgeable in the fields of public transportation finance 
     or highway and transit programs, policy, and needs. Financing 
     Commission members may include representatives of State and 
     local governments or other public transportation agencies, 
     representatives of the transportation construction industry, 
     providers of transportation, persons knowledgeable in 
     finance, and users of highway and transit systems.
       The Financing Commission will make an investigation and 
     study of revenues flowing into the Highway Trust Fund under 
     present law. The Financing Commission will consider whether 
     the amount of such revenues is likely to increase, decline or 
     remain unchanged absent changes in the law. The Financing 
     Commission will consider alternative approaches to generating 
     revenues for the Highway Trust Fund, and the level of 
     revenues that such alternatives would yield. The Financing 
     Commission will 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.
       The Financing Commission will develop a final report, with 
     recommendations and the bases for those recommendations. The 
     Financing Commission's recommendations will address: (1) what 
     levels of revenue are required by the Highway Trust Fund in 
     order for it to meet needs to maintain and improve the 
     condition and performance of the nation's highway and transit 
     systems; (2) what levels of revenue are required by the 
     Highway Trust Fund in order to ensure that Federal levels of 
     investment in highways and transit do not decline in real 
     terms; and (3) 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.
       The Financing Commission will submit its report and 
     recommendations within two years of the date of its first 
     meeting to the Secretary of Transportation, the Secretary of 
     the Treasury, the House Committee on Ways and Means, Senate 
     Committee on Finance, the House Committee on Transportation 
     and Infrastructure, the Senate Committee on Environment and 
     Public Works, and Senate Committee on Banking, Housing, and 
     Urban Affairs.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment with 
     the following modification. The Commission also must consider 
     a program that would exempt all or a portion of gasoline or 
     other motor fuels used in a State from the Federal excise tax 
     on such gasoline or other motor fuels if such State elects 
     not to receive all or a portion of Federal transportation 
     funding, including: (1) whether such State should be required 
     to increase State gasoline or other motor fuels taxes by the 
     amount of the decrease in the Federal excise tax on such 
     gasoline or other motor fuels; (2) whether any Federal 
     transportation funding should not be reduced or eliminated 
     for States participating in such program; (3) whether there 
     are any compliance problems related to enforcement of Federal 
     transportation-related excise taxes; and (4) study such other 
     matters closely related to the subjects described in the 
     preceding subparagraphs as it may deem appropriate.

 C. Expand Highway Trust Fund Expenditure Purposes to Include Funding 
 for Studies of Supplemental or Alternative Financing for the Highway 
             Trust Fund (sec. 5303 of the Senate amendment)


                              Present Law

     In general
       Dedication of excise tax revenues to the Highway Trust Fund 
     and expenditures from the Highway Trust Fund are governed by 
     provisions of the Code (sec. 9503).\91\ The Code authorizes 
     expenditures (subject to appropriations) from the Fund 
     through July 30,

[[Page H7526]]

     2005, for the purposes provided in authorizing legislation, 
     as in effect on the date of enactment of the Surface 
     Transportation Extension Act of 2005, Part IV.
---------------------------------------------------------------------------
     \91\ The Highway Trust Fund statutory provisions were placed 
     in the Internal Revenue Code in 1982.
---------------------------------------------------------------------------
       The Highway Trust Fund has a subaccount for Mass Transit. 
     Both the Trust Fund and its subaccount are funding sources 
     for specific programs.
       Highway Trust Fund expenditure purposes have been revised 
     with each authorization Act enacted since establishment of 
     the Highway Trust Fund in 1956. In general, expenditures 
     authorized under those Acts (as the Acts were in effect on 
     the date of enactment of the most recent such authorizing 
     Act) are approved by the Code as Highway Trust Fund 
     expenditure purposes.\92\
---------------------------------------------------------------------------
     \92\ The authorizing Acts which currently are referenced in 
     the Highway Trust Fund provisions of the Code are: the 
     Highway Revenue Act of 1956; Titles I and II of the Surface 
     Transportation Assistance Act of 1982; the Surface 
     Transportation and Uniform Relocation Act of 1987; the 
     Intermodal Surface Transportation Efficiency Act of 1991; the 
     Transportation Equity Act for the 21st Century; the Surface 
     Transportation Extension Act of 2003; the Surface 
     Transportation Extension Act of 2004; the Surface 
     Transportation Extension Act of 2004 Part II; the Surface 
     Transportation Extension Act of 2004, Part III; the Surface 
     Transportation Extension Act of 2004, Part IV; the Surface 
     Transportation Extension Act of 2004, Part V; the Surface 
     Transportation Extension Act of 2005; the Surface 
     Transportation Extension Act of 2005, Part II; the Surface 
     Transportation Extension Act of 2005, Part III; the Surface 
     Transportation Extension Act of 2005, Part IV and the Surface 
     Transportation Extension Act of 2005, Part V.
---------------------------------------------------------------------------
     Highway Trust Fund expenditure purposes
       Highway Trust Fund expenditure purposes
       The Highway Trust Fund receives revenues from all non-fuel 
     highway transportation excise taxes and revenues from all but 
     2.86 cents per gallon of the highway motor fuels excise taxes 
     transferred to the Highway Trust Fund. Programs financed from 
     the Highway Trust Fund (excluding the Mass Transit account) 
     include:
       1. Interstate maintenance program;
       2. National Highway System;
       3. The bridge program (bridge replacement and repair);
       4. Surface transportation programs;
       5. Congestion mitigation and air quality improvement 
     program;
       6. Highway safety programs and research and development, 
     including a share of the cost of National Highway Traffic 
     Safety Administration (``NHTSA'') programs and university 
     research centers;
       7. Appalachian development highway system program;
       8. Recreational trails program;
       9. Federal lands highways program;
       10. National corridor planning and development and 
     coordinated border infrastructure programs;
       11. Construction of ferry boats and ferry terminal 
     facilities;
       12. National scenic byways program;
       13. Value pricing pilot program;
       14. High priority projects program;
       15. Highway use tax evasion projects; and
       16. Commonwealth of Puerto Rico highway program.
       Certain administrative costs of the Federal Highway 
     Administration and NHTSA are also funded from the Highway 
     Trust Fund.
       Mass Transit Account expenditure purposes
       The Highway Fund's Mass Transit Account receives revenues 
     equivalent to 2.86 cents per gallon of the highway motor 
     fuels excise taxes. Mass Transit Account monies are available 
     through July 27, 2005, for capital and capital-related 
     expenditures under section 5338(a)(1) and 5338(b)(1) of Title 
     49, United States Code; the Intermodal Surface Transportation 
     Efficiency Act of 1991; the Transportation Equity Act for the 
     21st Century; the Surface Transportation Extension Act of 
     2003; the Surface Transportation Extension Act of 2004; the 
     Surface Transportation Extension Act of 2004, Part II; the 
     Surface Transportation Extension Act of 2004, Part III; the 
     Surface Transportation Extension Act of 2004, Part IV; the 
     Surface Transportation Act of 2004, Part V; the Surface 
     Transportation Extension Act of 2005; the Surface 
     Transportation Extension Act of 2005, Part II; the Surface 
     Transportation Extension Act of 2005, Part III; the Surface 
     Transportation Extension Act of 2005, Part IV; and the 
     Surface Transportation Extension Act of 2005, Part V, as 
     those provisions were in effect on the date of enactment of 
     the Surface Transportation Extension Act of 2005, Part V.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment expands the expenditure authority and 
     authorizes the expenditure of monies from the Highway Trust 
     Fund to fund two comprehensive studies of supplemental or 
     alternative funding sources for the Highway Trust Fund. One 
     study, to receive $1 million in funding, will review funding 
     mechanisms of other industrialized nations and examine the 
     viability of proposals such as congestion pricing, greater 
     reliance on tolls, privatization of facilities, and other 
     funding proposals. This study would be due no later than 
     December 31, 2006. The other study, to receive $16.5 million 
     in funding, would report on a long-term field test of a new 
     approach to assessing highway use taxes by use of an on-board 
     computer that links to satellites to calculate road mileage 
     traversed and compute the appropriate highway use tax for 
     each of the Federal, State, and local government as the 
     vehicle makes use of the roads. The results of this study 
     would be due no later than December 31, 2011. Each study 
     would be delivered to the Secretary of the Treasury and the 
     Secretary of Transportation.
       Effective date.--The Senate amendment is effective upon 
     date of enactment.


                          Conference Agreement

       The conference agreement addresses authorization of 
     expenditures for the study of alternative financing for the 
     Highway Trust Fund elsewhere in the conference agreement and 
     does not amend the Code for this purpose.

D. Delta Regional Transportation Plan (sec. 1806 of the House bill and 
                   sec. 5304 of the Senate amendment)


                              Present Law

       The Delta Regional Authority is a Federal-State 
     partnership, serving a 240-county/parish area in an eight-
     State region.\93\ No State is required to participate with 
     the authority. The duties of the authority are to: (1) 
     produce a regional development plan; (2) set priorities for 
     approval of grants in the region; (3) assess the region's 
     needs and assets; (4) inform participating States about 
     interstate cooperation; (5) work with States and local 
     agencies to develop model legislation; (6) enhance the 
     capacity of and support Local Development Districts, as well 
     as the creation of Local Development Districts where none 
     currently exist; (7) encourage private investment in economic 
     development projects in the region; and (8) assist State 
     governments with the States' economic development program.
---------------------------------------------------------------------------
     \93\ The covered States and counties are: Alabama--20 
     counties; Arkansas--42 counties; Illinois, 16 counties; 
     Kentucky--21 counties; Louisiana--46 parishes; Mississippi--
     45 counties; Missouri--29 counties; and Tennessee--21 
     counties. Delta Regional Authority, Legislative Matters and 
     Overview (February 1, 2004), <www.dra.gov/legislation.php>.
---------------------------------------------------------------------------


                               House Bill

       The provision directs the Secretary of Transportation to 
     enter into an agreement with the Delta Regional Authority to 
     conduct a comprehensive study of transportation assets and 
     needs in the eight states comprising the Delta region 
     (Alabama, Arkansas, Illinois, Kentucky, Louisiana, 
     Mississippi, Missouri, and Tennessee). The agreement must be 
     entered into within six months from the date of enactment. 
     The study and recommendations must be submitted, no later 
     than 24 months after the date of entry into the agreement, to 
     the Secretary of Transportation, to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Environment and Public 
     Works of the Senate.
       The study is to include all modes of transportation 
     (including passenger and freight transportation). The Delta 
     Regional Authority is to work with local planning and 
     development districts, local and regional governments, 
     metropolitan planning organizations, State transportation 
     entities, and Department of Transportation to develop a 
     regional strategic transportation plan. Upon completion of 
     the study, the Delta Regional Authority is to create a 
     regional strategic plan to achieve efficient transportation 
     systems in the Delta region.
       The provision authorizes the Delta Regional Authority to 
     receive $500,000 in fiscal year 2005, and $500,000 in fiscal 
     year 2006 to conduct a comprehensive study and plan. These 
     funds are to remain available until spent.
       Effective date.--The House bill is effective on the date of 
     enactment.


                            Senate Amendment

       The Senate amendment generally follows the House bill but 
     does not require an agreement with the Secretary of 
     Transportation, nor does it set a deadline for the submission 
     of the report.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement addresses the Delta Region 
     Transportation Plan elsewhere in the conference agreement and 
     does not amend the Code for this purpose.

    E. Establish Build America Corporation (sec. 5305 of the Senate 
                               amendment)


                              Present Law

       There is no provision in Federal law establishing a 
     nonprofit corporation dedicated to providing financing or 
     other financial support for transportation infrastructure 
     projects.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment establishes 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 Build America Corporation 
     generally shall be subject to the laws of the State of 
     Delaware applicable to non-profit corporations.
       The purpose of the corporation is to provide financial 
     support for qualified projects. Under the provision, a 
     ``qualified project'' generally is defined as 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. The provision imposes additional 
     requirements if a qualified project is

[[Page H7527]]

     financed by debt issued by the Build America Corporation.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

   F. Increase in Dollar Limits for Qualified Transportation Fringe 
              Benefits (sec. 5306 of the Senate amendment)


                              Present Law

       Under present law, qualified transportation benefits are 
     excludable from gross income and wages for employment tax 
     purposes. Qualified transportation benefits are: (1) 
     transportation in a commuter highway vehicle if such 
     transportation is in connection with travel between the 
     employee's residence and place of employment (``van 
     pooling''); (2) transit passes; and (3) qualified parking. 
     For purposes of the exclusion for van pooling benefits, a 
     commuter highway vehicle is any highway vehicle: (1) the 
     seating capacity of which is at least six adults (excluding 
     the driver); and (2) at least 80 percent of the mileage use 
     of which can reasonably be expected to be (a) for purposes of 
     transporting employees in connection with travel between 
     their residences and their place of employment and (b) on 
     trips during which the number of employees transported for 
     such purposes is at least one-half of the adult seating 
     capacity of such vehicle (not including the driver).
       The maximum amount of qualified parking that is excludable 
     from income and wages is $200 per month (for 2005). The 
     maximum amount of transit passes and van pooling benefits 
     that are excludable from income and wages per month is $105 
     (for 2005). These dollar amounts are indexed for inflation.


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, the maximum dollar amount of 
     excludable van pooling and transit pass benefits is increased 
     to $155 per month. The maximum amount of excludable qualified 
     parking is $200 per month. The dollar amounts are indexed for 
     inflation after 2008 (with 2007 as a base year). Beginning in 
     2010, the maximum dollar amount of excludable van pooling and 
     transit pass benefits is increased so that it is equal to the 
     maximum amount of excludable qualified parking.
       Effective date.--The Senate amendment is effective for 
     taxable years beginning after December 31, 2005.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

       G. Treasury Study of Highway Fuels Used by Trucks for Non-
      Transportation Purposes (sec. 5307 of the Senate amendment)


                              Present Law

       Present law does not provide for a study of the fuel use by 
     trucks.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment directs the Secretary of the Treasury 
     to study the use by trucks of highway motor fuel that is not 
     used for the propulsion of the vehicle, both in the case of 
     vehicles carrying equipment that is unrelated to the 
     transportation function of the vehicle and in the case where 
     non-transportation equipment is run by a separate motor. In 
     addition, the Secretary is to estimate the amount of fuel 
     consumed and pollutants emitted by trucks due to the long-
     term idling of diesel engines, and report on the cost of 
     reducing long-term idling through various technologies. The 
     Secretary is to propose options for implementing exemptions 
     for classes of vehicles whose nonpropulsive fuel use exceeds 
     50 percent.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment with 
     modification that the Secretary is to propose options for 
     implementing exemptions from tax for fuel used in non-
     transportation uses, but only if the Secretary determines 
     such exemptions are administratively feasible, for the 
     following: (1) mobile machinery whose nonpropulsive fuel use 
     exceeds 50 percent and (2) any highway vehicle that consumes 
     fuel for both transportation- and nontransportation-related 
     equipment, using a single motor. With respect to item (2), it 
     is intended that the Secretary take into consideration such 
     factors as whether the fuel use for non-transportation 
     equipment by the vehicle operator is significant both 
     relative to transportation-related fuel consumption of the 
     vehicle and relative to the vehicle operator's business. 
     There may be significant non- transportation use of taxed 
     fuel even if such use is small relative to the vehicle's 
     transportation use, if the vehicle is used extensively. Also 
     with respect to item (2), it is intended that the Secretary 
     take into account variations in fuel use among the different 
     types of vehicles, such as concrete mixers, refuse collection 
     vehicles, tow trucks, mobile drills, and other vehicles that 
     the Secretary identifies.

  H. Tax-Exempt Financing of Highway Projects and Rail-Truck Transfer 
Facilities (sec. 5308 of the Senate amendment and sec. 142 of the Code)


                              Present law

     Tax-exempt bonds
       In general
       Interest on bonds issued by State and local governments 
     generally is excluded from gross income for Federal income 
     tax purposes if the proceeds of the bonds are used to finance 
     direct activities of these governmental units or if the bonds 
     are repaid with revenues of the governmental units. Interest 
     on State or local bonds to finance activities of private 
     persons (``private activity bonds'') is taxable unless a 
     specific exception is contained in the Code (or in a non-Code 
     provision of a revenue Act). The term ``private person'' 
     generally includes the Federal government and all other 
     individuals and entities other than States or local 
     governments.
       Qualified private activity bonds
       Private activity bonds are eligible for tax-exemption if 
     issued for certain purposes permitted by the Code 
     (``qualified private activity bonds''). The definition of a 
     qualified private activity bond includes an exempt facility 
     bond, or qualified mortgage, veterans' mortgage, small issue, 
     redevelopment, 501(c)(3), or student loan bond.\94\ The 
     definition of exempt facility bond includes bonds issued to 
     finance certain transportation facilities (airports, ports, 
     mass commuting, and high-speed intercity rail facilities); 
     low-income residential rental property; privately owned and/
     or operated utility facilities (sewage, water, solid waste 
     disposal, and local district heating and cooling facilities, 
     certain private electric and gas facilities, and 
     hydroelectric dam enhancements); public/private educational 
     facilities; and, qualified green building/sustainable design 
     projects.\95\
---------------------------------------------------------------------------
     \94\ Sec. 141(e).
     \95\ Sec. 142(a).
---------------------------------------------------------------------------
       Issuance of most qualified private activity bonds is 
     subject (in whole or in part) to annual State volume 
     limitations.\96\ Exceptions are provided for bonds for 
     certain governmentally owned facilities (airports, ports, 
     high-speed intercity rail, and solid waste disposal) and 
     bonds which are subject to separate local, State, or national 
     volume limits (public/private educational facilities, 
     enterprise zone facility bonds, and qualified green building/
     sustainable design projects).
---------------------------------------------------------------------------
     \96\ Sec. 146.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment establishes new categories of exempt 
     facility bonds: bonds issued to finance ``qualified highway 
     facilities'' and bonds issued to finance ``qualified surface 
     freight transfer facilities'' (collectively ``qualified 
     highway or surface freight transfer facilities''). Under the 
     provision, a qualified highway facility is any surface 
     transportation or international bridge or tunnel project (for 
     which an international entity authorized under Federal or 
     State law is responsible) which receives Federal assistance 
     under title 23 of the United States Code (relating to 
     Highways). A qualified surface freight transfer facility is a 
     facility for the transfer of freight from truck to rail or 
     rail to truck which receives Federal assistance under title 
     23 or title 49 of the United States Code (relating to 
     Transportation).
       Under the provision, bonds issued to finance qualified 
     highway or surface freight transfer facilities are not 
     subject to the State volume limitations. Rather, there is an 
     annual limitation on the aggregate amount of bonds that may 
     be issued to finance such facilities for each of the calendar 
     years 2005 through 2015, as follows: $130 million for 2005; 
     $750 million for each of the years 2006, 2007, 2008, and 
     2009; $1.87 billion for 2010; $2 billion for each of the 
     years 2011, 2012, 2013, 2014, and 2015. The Secretary of 
     Transportation may allocate the annual bond authority among 
     qualified highway or surface freight transfer facilities in 
     such manner as the Secretary of Transportation determines 
     appropriate. The authority to issue qualified highway or 
     surface freight transfer facility bonds terminates after 
     December 31, 2015.
       The Senate amendment requires the proceeds of qualified 
     highway or surface freight transfer facility bonds to be 
     spent on qualified projects within five years from the date 
     of issuance of such bonds. Proceeds that remain unspent after 
     five years must be used to redeem outstanding bonds. However, 
     the provision authorizes the Secretary of the Treasury (or 
     his delegate) to extend the five-year period if the issuer 
     establishes that the need for the extension is appropriate 
     and due to circumstances not within the control of the 
     issuer.
       Effective date.--The Senate amendment applies to bonds 
     issued after the date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment 
     provision with modifications. The conference agreement 
     eliminates the limitation on the aggregate amount of 
     qualified highway or surface freight transfer facility bonds 
     that may be issued in each of the calendar years 2005 through 
     2015. The Secretary of Transportation is authorized to 
     allocate a total of $15 billion of issuance authority to 
     qualified highway or surface freight transfer facilities in 
     such manner as the Secretary determines appropriate. The 
     conference agreement also clarifies that bonds are not 
     treated as qualified highway or surface freight transfer 
     facility bonds unless the aggregate amount of bonds issued 
     with

[[Page H7528]]

     respect to qualified facilities does not exceed the amount of 
     authority allocated to such facilities by the Secretary of 
     Transportation. However, the aggregate limitation on bonds 
     that may be issued does not apply to the ``current 
     refunding'' of qualified highway or surface freight transfer 
     facility bonds. Bonds are treated as a current refunding for 
     this purpose if: (1) the average maturity date of the 
     refunding bond is not later than the average maturity date of 
     the refunded bonds; (2) the amount of the refunding bond does 
     not exceed the outstanding amount of the refunded bond, and 
     (3) the refunded bond is redeemed not later than 90 days 
     after the date of the issuance of the refunding bond.
       The conference agreement on this provision is not intended 
     to expand the scope of any Federal requirement beyond its 
     application under present law and does not broaden the 
     application of any Federal requirement under present law in 
     Title 49.
     I. Tax Treatment of State Ownership of Railroad Real Estate 
         Investment Trust (sec. 5309 of the Senate amendment and 
         secs. 103, 115, 336, and 337 of the Code)


                              Present Law

       A real estate investment trust (``REIT'') is an electing 
     entity that is engaged primarily in passive real estate 
     activities (as specifically defined) and that, among other 
     requirements, must have at least 100 shareholders. If a 
     qualified entity elects REIT status, it can pay little or no 
     corporate level tax, since a REIT is allowed a deduction for 
     amounts distributed to its shareholders and is required to 
     distribute at least 90 percent of its income to shareholders 
     annually.
       If an entity does not qualify to be treated as a REIT, it 
     would generally be treated as a regular corporation subject 
     to corporate level tax on its income under subchapter C and 
     section 11 of the Code. Such a corporation can elect to be 
     taxed as a partnership or disregarded entity under Treasury 
     regulations. However, if it made such an election, the 
     corporation would be treated as if it had liquidated and 
     distributed its assets to shareholders, generally resulting 
     in corporate-level tax on the excess of the fair market value 
     over the basis of corporate assets.\97\ A corporation that 
     itself becomes a tax-exempt entity also must pay corporate 
     tax on the excess of the fair market value over the basis of 
     its assets.\98\
---------------------------------------------------------------------------
     \97\ Sec. 336. An exception to this gain recognition applies 
     to certain liquidations into a corporation that owns 80 
     percent of the liquidating entity and that is not itself tax-
     exempt. Sec. 337.
     \98\ Treas. Reg. sec. 1.337(d)-4(a)(2).
---------------------------------------------------------------------------
       A State or local government is not subject to Federal 
     income tax on income that accrues to the State or any 
     political subdivision thereof and that is derived from any 
     public utility or the exercise of any activity that is an 
     essential governmental function.\99\
---------------------------------------------------------------------------
     \99\ Sec. 115.
---------------------------------------------------------------------------
       Interest on a State and local bond is excluded from gross 
     income, with certain exceptions.\100\ Special rules are also 
     provided as requirements for tax exemption for State and 
     local bonds.\101\ State and local bonds can be classified by 
     the type of entity using the proceeds as either governmental 
     or private activity bonds. In general, bonds are governmental 
     bonds if the proceeds of the bonds are used to finance direct 
     activities of governmental entities or if the bonds are 
     repaid with revenues of governmental entities. Private 
     activity bonds are bonds with respect to which a State or 
     local government serves as a conduit providing financing to 
     private businesses or individuals. The exclusion from income 
     for State and local bonds does not apply to private activity 
     bonds unless the bonds are issued for certain purposes 
     permitted by the Code. In addition, both governmental and 
     private activity bonds must satisfy applicable rules provided 
     for in the Code as a condition of tax exemption.\102\
---------------------------------------------------------------------------
     \100\ Sec. 103.
     \101\ Secs. 141-150.
     \102\ Secs. 141-150.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, the income of a qualified 
     corporation that is derived from its railroad transportation 
     and economic development activities, that constitute 
     substantially all of its activities (as described below), is 
     treated as accruing to the State for purposes of section 115, 
     to the extent such activities are of a type which are an 
     essential governmental function under section 115 of present 
     law. For purposes of the provision, a qualified corporation 
     is a corporation which is a REIT on the date of enactment and 
     which is a non-operating Class III railroad that becomes 100 
     percent owned by a State after December 31, 2003 and before 
     December 31, 2006. Moreover, substantially all activities of 
     the corporation must consist of the ownership, leasing, and 
     operation by such corporation of facilities, equipment, and 
     other property used by the corporation or other persons for 
     railroad transportation and for economic development for the 
     benefit of the State and its citizens.
       Under the Senate amendment, no gain or loss shall be 
     recognized from the deemed conversion of such a REIT to such 
     a qualified corporation and no change in the basis of the 
     property of the entity shall occur.
       Also, any obligation issued by a qualified corporation 
     described above is treated as an obligation of a State for 
     purposes of applying the tax exempt bond provisions if 95 
     percent of the net proceeds of such obligation are to be used 
     to provide for the acquisition, construction, or improvement 
     of railroad transportation infrastructure (including railroad 
     terminal facilities). In addition, such an obligation shall 
     not be treated as a private activity bond solely by reason of 
     the ownership or use of such railroad transportation 
     infrastructure by the corporation. All other present-law 
     provisions relating to tax exempt bonds continue to apply to 
     and govern bonds issued by the corporation. For example, the 
     use by a private business of railroad property financed with 
     the proceeds of bonds issued by a qualified corporation may 
     cause such bonds to be taxable private activity bonds.
       Effective date.--The Senate amendment applies on and after 
     the date a State becomes the owner of all the outstanding 
     stock of a qualified corporation through action of such 
     corporation's board of directors, provided that the State 
     becomes the owner of all the voting stock of the corporation 
     on or before December 31, 2003 and becomes the owner of all 
     the outstanding stock of the corporation on or before 
     December 31, 2006.


                          Conference Agreement

       The conference agreement follows the Senate amendment.

 J. Incentives for Installation of Alternative Fuel Refueling Property 
               (secs. 5310 and 2010 of Senate amendment)


                              Present Law

       Certain costs of qualified clean-fuel vehicle refueling 
     property may be expensed and deducted when such property is 
     placed in service (sec. 179A). Up to $100,000 of such 
     property at each location owned by the taxpayer may be 
     expensed with respect to that location. Natural gas, 
     liquefied natural gas, liquefied petroleum gas, hydrogen, 
     electricity and any other fuel at least 85 percent of which 
     is methanol, ethanol, or any other alcohol or ether comprise 
     clean-burning fuels.
       The deduction is unavailable for property placed in service 
     after December 31, 2006.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment provision permits taxpayers to claim a 
     50-percent credit for the cost of installing clean-fuel 
     vehicle refueling property to be used in a trade or business 
     of the taxpayer or installed at the principal residence of 
     the taxpayer. In the case of retail clean-fuel vehicle 
     refueling property installed as part of the taxpayer's 
     business the allowable credit may not exceed $30,000. In the 
     case of residential clean-fuel vehicle refueling property the 
     allowable credit may not exceed $1,000.
       Under the provision clean fuels are any fuel at least 85 
     percent of the volume of which consists of ethanol, natural 
     gas, compressed natural gas, liquefied natural gas, and 
     hydrogen.
       The taxpayer's basis in the property is reduced by the 
     amount of the credit and the taxpayer may not claim 
     deductions under section 179A with respect to property for 
     which the credit is claimed. In the case of refueling 
     property installed on property owned or used by a tax-exempt 
     person, the taxpayer that installs the property may claim the 
     credit. To be eligible for the credit, the property must be 
     placed in service before January 1, 2010. The credit 
     allowable in the taxable year cannot exceed the difference 
     between the taxpayer's regular tax (reduced by certain other 
     credits) and the taxpayer's tentative minimum tax. The 
     taxpayer may carry forward unused credits for 20 years.
       Effective date.--The Senate amendment is effective for 
     property placed in service after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

   K. Modify Recapture of Section 197 Amortization (sec. 5311 of the 
                           Senate amendment)


                              Present Law

       Taxpayers are entitled to recover the cost of amortizable 
     section 197 intangibles using the straight-line method of 
     amortization over a uniform life of fifteen years.\103\ With 
     certain exceptions, amortizable section 197 intangibles 
     generally are purchased intangibles held by a taxpayer in the 
     conduct of a business.\104\
---------------------------------------------------------------------------
     \103\ Sec. 197(a).
     \104\ Sec. 197(c).
---------------------------------------------------------------------------
       Gain on the sale of depreciable property must be recaptured 
     as ordinary income to the extent of depreciation deductions 
     previously claimed,\105\ and the recapture amount is computed 
     separately for each item of property. Section 197 
     intangibles, because they are treated as property of a 
     character subject to the allowance for depreciation,\106\ are 
     subject to these recapture rules.
---------------------------------------------------------------------------
     \105\ Sec. 1245.
     \106\ Sec. 197(f)(7).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, if multiple section 197 
     intangibles are sold (or otherwise disposed of) in a single 
     transaction or series of transactions, the seller must 
     calculate recapture as if all of the section 197 intangibles 
     were a single asset. Thus, any gain on the sale (or other 
     disposition) of the intangibles is recaptured as ordinary 
     income to the extent of ordinary depreciation deductions 
     previously claimed on any of the section 197 intangibles.

[[Page H7529]]

       The following example illustrates present law and the 
     Senate amendment:
       Example.--In year 1, a taxpayer acquires two section 197 
     intangible assets for a total of $45. Asset A is assigned a 
     cost basis of $15 and asset B is assigned a cost basis of 
     $30. The allocation is irrelevant for amortization purposes, 
     as the taxpayer will be entitled to a total of $3 per year 
     ($45 divided by 15 years).
       In year 6, the basis of A is $10 and the basis of B is $20. 
     Taxpayer sells the assets for an aggregate sale price of $45, 
     resulting in gain of $15. The character of this gain depends 
     on the recapture amount, which depends in turn on the 
     relative sales prices of the individual assets. Taxpayer has 
     claimed $5 of amortization, and therefore has $5 of recapture 
     potential, with respect to A. Taxpayer has claimed $10 of 
     amortization, and therefore has $10 of recapture potential, 
     with respect to B.
       Under present law, if the sale proceeds are allocated $15 
     to A and $30 to B, the gain on assets A and B will be $5 and 
     $10, respectively. These amounts match the recapture 
     potential for each asset, so the full amount of the gain will 
     be recaptured as ordinary income. However, if the sale 
     proceeds instead are allocated $25 to A and $20 to B, the 
     full $15 gain will be recognized with respect to A, and only 
     $5 (full recapture potential with respect to A) will be 
     recaptured as ordinary income. The remaining $10 of gain 
     attributable to A will be treated as capital gain. No gain 
     (and thus no recapture) will be recognized with respect to 
     Asset B, and only $5 of the $15 recapture potential is 
     recognized.
       Under the Senate amendment, the taxpayer calculates 
     recapture as if assets A and B were a single asset. For 
     purposes of the calculation, the proceeds are $45 and the 
     gain is $15. Because a total of $15 of amortization has been 
     claimed with respect to assets A and B, the full $15 gain is 
     recaptured as ordinary income.
       Effective date.--The Senate amendment is effective for 
     dispositions of property after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

 L. Diesel Fuel Tax Evasion Report (sec. 5312 of the Senate amendment)


                              present law

       An excise tax is imposed upon (1) the removal of any 
     taxable fuel from a refinery or terminal, (2) the entry of 
     any taxable fuel into the United States, or (3) the sale of 
     any taxable fuel to any person who is not registered with the 
     IRS to receive untaxed fuel, unless there was a prior taxable 
     removal or entry.\107\ The tax does not apply to any removal 
     or entry of taxable fuel transferred in bulk by pipeline or 
     vessel to a terminal or refinery if the person removing or 
     entering the taxable fuel, the operator of such pipeline or 
     vessel, and the operator of such terminal or refinery are 
     registered with the Secretary.\108\
---------------------------------------------------------------------------
     \107\ Sec. 4081(a)(1).
     \108\ Sec. 4081(a)(1)(B).
---------------------------------------------------------------------------
       Diesel fuel and kerosene that is to be used for a 
     nontaxable purpose will not be taxed upon removal from the 
     terminal if it is dyed to indicate its nontaxable 
     purpose.\109\ In addition to requirement that fuel be dyed, 
     the Secretary has the authority to prescribe marking 
     requirements for diesel fuel and kerosene destined for a 
     nontaxable use.\110\ The Secretary has not prescribed any 
     marking requirements.
---------------------------------------------------------------------------
     \109\ Sec. 4082(a)(1) and (2).
     \110\ Sec. 4082(a)(3).
---------------------------------------------------------------------------


                               house bill

       No provision.


                            senate amendment

       The Senate amendment requires the Commissioner of the IRS 
     to report on the availability of new technologies that can be 
     employed to enhance the collections of the excise tax on 
     diesel fuel and the plans of the IRS to employ such 
     technologies. The report is to be submitted within 360 days 
     from the date of enactment to the Senate Committees on 
     Finance and Environment and Public Works, and the House 
     Committees on Ways and Means and Transportation and 
     Infrastructure.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          conference agreement

       The conference agreement follows the Senate amendment 
     except the conference agreement requires the report to 
     contain certain additional information regarding the use of 
     forensic or chemical molecular markers. Specifically, the 
     conference agreement requires the report to cover the 
     availability of forensic or chemical molecular markers, in 
     addition to other technologies, to enhance collections of the 
     excise tax on diesel fuel and the plans of the Internal 
     Revenue Service to employ such technologies. The report must 
     also cover the design of three tests: (1) the design of a 
     test to place forensic or chemical molecular markers in any 
     excluded liquid as that term is defined in Treasury 
     regulations; (2) the design of a test, in consultation with 
     the Department of Defense, to place forensic or chemical 
     molecular markers in all nonstrategic bulk fuel deliveries of 
     diesel fuel to the military, and (3) the design of a test to 
     place forensic or chemical molecular markers in all diesel 
     fuel bound for export utilizing the Gulf of Mexico.
       Effective date.--The provision is effective on the date of 
     enactment.

 M. Leaking Underground Storage Tank Trust Fund (sec. 9508 of the Code)


                              Present Law

     Leaking Underground Storage Tank Trust Fund
       The Code imposes an excise tax, generally at a rate of 0.1 
     cents per gallon, on gasoline, diesel, kerosene, and special 
     motor fuels (other than liquefied petroleum gas and liquefied 
     natural gas).\111\ The taxes are deposited in the Leaking 
     Underground Storage Tank (``LUST'') Trust Fund. The tax 
     expires on October 1, 2005.
---------------------------------------------------------------------------
     \111\ For qualified methanol and ethanol fuel the rate is 
     0.05 cents per gallon (sec. 4041(b)(2)(A)(ii)). Qualified 
     methanol or ethanol fuel is any liquid at least 85 percent of 
     which consists of methanol, ethanol or other alcohol produced 
     from coal (including peat) (sec. 4041(b)(2)(B)).
---------------------------------------------------------------------------
       Amounts in the LUST Trust Fund are available, subject to 
     appropriation, only for purposes of making expenditures to 
     carry out section 9003(h) of the Solid Waste Disposal Act as 
     in effect on the date of enactment of the Superfund 
     Amendments and Reauthorization Act of 1986.
     Highway Trust Fund
       The Highway Trust Fund provisions of the Code contain a 
     special enforcement provision to prevent expenditure of 
     Highway Trust Fund monies for purposes not authorized in 
     section 9503 or a revenue Act.\112\ If such unapproved 
     expenditures occur, no further excise tax receipts will be 
     transferred to the Highway Trust Fund. Rather, the taxes will 
     continue to be imposed with receipts being retained in the 
     General Fund. This enforcement provision provides 
     specifically that it applies not only to unauthorized 
     expenditures under the current Code provisions, but also to 
     expenditures pursuant to future legislation that does not 
     amend section 9503's expenditure authorization provisions or 
     otherwise authorize the expenditure as part of a revenue Act.
---------------------------------------------------------------------------
     \112\ Sec. 9503(b)(6).
---------------------------------------------------------------------------


                               house bill

       No provision.


                            senate amendment

       No provision.


                          conference agreement

       The conference agreement adds to the Code's LUST Trust Fund 
     provisions a special enforcement provision similar to that 
     applicable to the Highway Trust Fund to prevent expenditure 
     of LUST Trust Fund monies for purposes not authorized by the 
     Code or in a revenue Act.
       Effective date.--The provision is effective on the date of 
     enactment.

                         N. Revenue Provisions

     1. Treatment of contingent payment convertible debt 
         instruments (sec. 5501 of the Senate amendment)


                              Present Law

       Under present law, a taxpayer generally deducts the amount 
     of interest paid or accrued within the taxable year on 
     indebtedness issued by the taxpayer. In the case of original 
     issue discount (``OID''), the issuer of a debt instrument 
     generally accrues and deducts, as interest, the OID over the 
     life of the obligation, even though the amount of the OID may 
     not be paid until the maturity of the instrument.
       The amount of OID with respect to a debt instrument is 
     equal to the excess of the stated redemption price at 
     maturity over the issue price of the debt instrument. The 
     stated redemption price at maturity includes all amounts that 
     are payable on the debt instrument by maturity. The amount of 
     OID with respect to a debt instrument is allocated over the 
     life of the instrument through a series of adjustments to the 
     issue price for each accrual period. The adjustment to the 
     issue price is determined by multiplying the adjusted issue 
     price (i.e., the issue price increased or decreased by 
     adjustments before the accrual period) by the instrument's 
     yield to maturity, and then subtracting any payments on the 
     debt instrument (other than non-OID stated interest) during 
     the accrual period. Thus, in order to compute the amount of 
     OID and the portion of OID allocable to a particular period, 
     the stated redemption price at maturity and the time of 
     maturity must be known. Issuers of debt instruments with OID 
     accrue and deduct the amount of OID as interest expense in 
     the same manner as the holders of those instruments accrue 
     and include in gross income the amount of OID as interest 
     income.
       Treasury regulations provide special rules for determining 
     the amount of OID allocated to a period for certain debt 
     instruments that provide for one or more contingent payments 
     of principal or interest.\113\ The regulations provide that a 
     debt instrument does not provide for contingent payments 
     merely because it provides for an option to convert the debt 
     instrument into the stock of the issuer, into the stock or 
     debt of a related party, or into cash or other property in an 
     amount equal to the approximate value of that stock or 
     debt.\114\ The regulations also provide that a payment is not 
     a contingent payment merely because of a contingency that, as 
     of the issue date of the debt instrument, is either remote or 
     incidental.\115\
---------------------------------------------------------------------------
     \113\ Treas. Reg. sec. 1.1275-4.
     \114\ Treas. Reg. sec. 1.1275-4(a)(4).
     \115\ Treas. Reg. sec. 1.1275-4(a)(5).
---------------------------------------------------------------------------
       In the case of contingent payment debt instruments that are 
     issued for money or publicly traded property,\116\ the 
     regulations provide that interest on a debt instrument must

[[Page H7530]]

     be taken into account (as OID) whether or not the amount of 
     any payment if fixed or determinable in the taxable year. The 
     amount of OID that is taken into account for each accrual 
     period is determined by constructing a comparable yield and a 
     projected payment schedule for the debt instrument, and then 
     accruing the OID on the basis of the comparable yield and 
     projected payment schedule by applying rules similar to those 
     for accruing OID on a noncontingent debt instrument (the 
     ``noncontingent bond method''). If the actual amount of a 
     contingent payment is not equal to the projected amount, 
     appropriate adjustments are made to reflect the difference. 
     The comparable yield for a debt instrument is the yield at 
     which the issuer would be able to issue a fixed-rate 
     noncontingent debt instrument with terms and conditions 
     similar to those of the contingent payment debt instrument 
     (i.e., the comparable fixed-rate debt instrument), including 
     the level of subordination, term, timing of payments, and 
     general market conditions.\117\
---------------------------------------------------------------------------
     \116\ Treas. Reg. sec. 1.1275-4(b).
     \117\ Treas. Reg. sec. 1.1275-4(b)(4)(i)(A).
---------------------------------------------------------------------------
       Certain debt instruments, often referred to as ``contingent 
     convertible'' debt instruments, are convertible into the 
     common stock of the issuer and also provide for contingent 
     payments (other than the conversion feature). The IRS has 
     stated that the noncontingent bond method applies in 
     computing the accrual of OID on these contingent convertible 
     debt instruments.\118\ In applying the noncontingent bond 
     method, the IRS has stated that the comparable yield for a 
     contingent convertible debt instrument is determined by 
     reference to a comparable fixed-rate nonconvertible debt 
     instrument, and the projected payment schedule is determined 
     by treating the issuer stock received upon a conversion of 
     the debt instrument as a contingent payment.
---------------------------------------------------------------------------
     \118\ Rev. Rul. 2002-31, 2002-1 C.B. 1023.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The provision provides that, in the case of a contingent 
     convertible debt instrument,\119\ any Treasury regulations 
     which require OID to be determined by reference to the 
     comparable yield of a noncontingent fixed-rate debt 
     instrument shall be applied as requiring that such comparable 
     yield be determined by reference to a noncontingent fixed-
     rate debt instrument which is convertible into stock. For 
     purposes of applying the provision, the comparable yield 
     shall be determined without taking into account the yield 
     resulting from the conversion of a debt instrument into 
     stock. Thus, the noncontingent bond method in the Treasury 
     regulations shall be applied in a manner such that the 
     comparable yield for contingent convertible debt instruments 
     shall be determined by reference to comparable noncontingent 
     fixed-rate convertible (rather than nonconvertible) debt 
     instruments.
---------------------------------------------------------------------------
     \119\ Under the provision, a contingent convertible debt 
     instrument is defined as a debt instrument that: (1) is 
     convertible into stock of the issuing corporation, or a 
     corporation in control of, or controlled by, the issuing 
     corporation; and (2) provides for contingent payments.
---------------------------------------------------------------------------
       Effective date.--The Senate amendment is effective for debt 
     instruments issued on or after date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     2. Frivolous tax submissions (sec. 5502 of the Senate 
         amendment)


                              Present Law

       The Code provides that an individual who files a frivolous 
     income tax return is subject to a penalty of $500 imposed by 
     the IRS.\120\ The Code also permits the Tax Court \121\ to 
     impose a penalty of up to $25,000 if a taxpayer has 
     instituted or maintained proceedings primarily for delay or 
     if the taxpayer's position in the proceeding is frivolous or 
     groundless.\122\
---------------------------------------------------------------------------
     \120\ Sec. 6702.
     \121\ Because the Tax Court generally is the only pre-payment 
     forum available to taxpayers, it hears most of the frivolous, 
     groundless, or dilatory arguments raised in tax cases.
     \122\ Sec. 6673(a).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment modifies the IRS-imposed penalty by 
     increasing the amount of the penalty to up to $5,000 and by 
     applying it to all taxpayers and to all types of Federal 
     taxes.
       The Senate amendment also modifies present law with respect 
     to certain submissions that raise frivolous arguments or that 
     are intended to delay or impede tax administration. The 
     submissions to which this provision applies are requests for 
     a collection due process hearing, installment agreements, 
     offers-in-compromise, and taxpayer assistance orders. First, 
     the Senate amendment permits the IRS to dismiss such 
     requests. Second, the Senate amendment permits the IRS to 
     impose a penalty of up to $5,000 for such requests, unless 
     the taxpayer withdraws the request after being given an 
     opportunity to do so.
       The Senate amendment requires the IRS to publish a list of 
     positions, arguments, requests, and submissions determined to 
     be frivolous for this purpose.
       Effective date.--The Senate amendment is effective with 
     respect to submissions made and issues raised after the date 
     on which the Secretary first prescribes the required list of 
     frivolous positions.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     3. Increase in certain criminal penalties (sec. 5503 of the 
         Senate amendment)


                              Present Law

     Attempt to evade or defeat tax
       In general, section 7201 imposes a criminal penalty on 
     persons who willfully attempt to evade or defeat any tax 
     imposed by the Code. Upon conviction, the Code provides that 
     the penalty is up to $100,000 or imprisonment of not more 
     than five years (or both). In the case of a corporation, the 
     Code increases the monetary penalty to a maximum of $500,000.
     Willful failure to file return, supply information, or pay 
         tax
       In general, section 7203 imposes a criminal penalty on 
     persons required to make estimated tax payments, pay taxes, 
     keep records, or supply information under the Code who 
     willfully fails to do so. Upon conviction, the Code provides 
     that the penalty is up to $25,000 or imprisonment of not more 
     than one year (or both). In the case of a corporation, the 
     Code increases the monetary penalty to a maximum of $100,000.
     Fraud and false statements
       In general, section 7206 imposes a criminal penalty on 
     persons who make fraudulent or false statements under the 
     Code. Upon conviction, the Code provides that the penalty is 
     up to $100,000 or imprisonment of not more than three years 
     (or both). In the case of a corporation, the Code increases 
     the monetary penalty to a maximum of $500,000.
     Uniform sentencing guidelines
       Under the uniform sentencing guidelines established by 18 
     U.S.C. sec. 3571, a defendant found guilty of a criminal 
     offense is subject to a maximum fine that is the greatest of: 
     (a) the amount specified in the underlying provision, (b) for 
     a felony \123\ $250,000 for an individual or $500,000 for an 
     organization, or (c) twice the gross gain if a person derives 
     pecuniary gain from the offense. This Title 18 provision 
     applies to all criminal provisions in the United States Code, 
     including those in the Internal Revenue Code. For example, 
     for an individual, the maximum fine under present law upon 
     conviction of violating section 7206 is $250,000 or, if 
     greater, twice the amount of gross gain from the offense.
---------------------------------------------------------------------------
     \123\ Section 7206 provides that the making of fraudulent or 
     false statements is a felony. In addition, this offense is a 
     felony pursuant to the classification guidelines of 18 U.S.C. 
     sec. 3559(a)(5).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

     Attempt to evade or defeat tax
       The Senate amendment increases the criminal penalty under 
     section 7201 of the Code for individuals to $500,000 and for 
     corporations to $1,000,000. The provision increases the 
     maximum prison sentence to ten years.
     Willful failure to file return, supply information, or pay 
         tax
       The Senate amendment increases the criminal penalty under 
     section 7203 of the Code from a misdemeanor to a felony for 
     aggravated failures to file. Under the provision, an 
     aggravated failure to file is any case in which the taxpayer 
     fails to file returns for three or more consecutive years and 
     the aggregated tax liability during such years is $100,000 or 
     greater. The provision imposes a penalty for an aggravated 
     failure to file up to $500,000 for individuals and up to 
     $1,000,000 for corporations. The provision also imposes a 
     maximum prison sentence of ten years.
       In misdemeanor cases, the provision increases the criminal 
     penalty under section 7203 of the Code for individuals to 
     $50,000.
     Fraud and false statements
       The Senate amendment increases the criminal penalty under 
     section 7206 of the Code for individuals to $500,000 and for 
     corporations to $1,000,000. The provision increases the 
     maximum prison sentence to five years. The provision also 
     provides that in no event shall the amount of the monetary 
     penalty under this provision be less than the amount of the 
     underpayment or overpayment attributable to fraud.
       Effective date.--The Senate amendment is effective for 
     actions and failures to act occurring after the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

4. Doubling of certain penalties, fines, and interest on underpayments 
 related to certain offshore financial arrangements (sec. 5504 of the 
                           Senate amendment)


                              Present Law

     In general
       The Code contains numerous civil penalties, such as the 
     delinquency, accuracy-related, fraud, and assessable 
     penalties. These civil penalties are in addition to any 
     interest that may be due as a result of an underpayment of 
     tax. If all or any part of a tax is not paid when due, the 
     Code imposes interest on the underpayment, which is assessed 
     and collected in the same manner as the underlying tax and is 
     subject to the respective statutes of limitations for 
     assessment and collection.
     Delinquency penalties
       Failure to file.--Under present law, a taxpayer who fails 
     to file a tax return on a

[[Page H7531]]

     timely basis is generally subject to a penalty equal to five 
     percent of the net amount of tax due for each month that the 
     return is not filed, up to a maximum of five months or 25 
     percent. An exception from the penalty applies if the failure 
     is due to reasonable cause. The net amount of tax due is the 
     excess of the amount of the tax required to be shown on the 
     return over the amount of any tax paid on or before the due 
     date prescribed for the payment of tax.
       Failure to pay.--Taxpayers who fail to pay their taxes are 
     subject to a penalty of 0.5 percent per month on the unpaid 
     amount, up to a maximum of 25 percent. If a penalty for 
     failure to file and a penalty for failure to pay tax shown on 
     a return both apply for the same month, the amount of the 
     penalty for failure to file for such month is reduced by the 
     amount of the penalty for failure to pay tax shown on a 
     return. If a return is filed more than 60 days after its due 
     date, then the penalty for failure to pay tax shown on a 
     return may not reduce the penalty for failure to file below 
     the lesser of $100 or 100 percent of the amount required to 
     be shown on the return. For any month in which an installment 
     payment agreement with the IRS is in effect, the rate of the 
     penalty is half the usual rate (0.25 percent instead of 0.5 
     percent), provided that the taxpayer filed the tax return in 
     a timely manner (including extensions).
       Failure to make timely deposits of tax.--The penalty for 
     the failure to make timely deposits of tax consists of a 
     four-tiered structure in which the amount of the penalty 
     varies with the length of time within which the taxpayer 
     corrects the failure. A depositor is subject to a penalty 
     equal to two percent of the amount of the underpayment if the 
     failure is corrected on or before the date that is five days 
     after the prescribed due date. A depositor is subject to a 
     penalty equal to five percent of the amount of the 
     underpayment if the failure is corrected after the date that 
     is five days after the prescribed due date but on or before 
     the date that is 15 days after the prescribed due date. A 
     depositor is subject to a penalty equal to 10 percent of the 
     amount of the underpayment if the failure is corrected after 
     the date that is 15 days after the due date but on or before 
     the date that is 10 days after the date of the first 
     delinquency notice to the taxpayer (under sec. 6303). 
     Finally, a depositor is subject to a penalty equal to 15 
     percent of the amount of the underpayment if the failure is 
     not corrected on or before the date that is 10 days after the 
     date of the day on which notice and demand for immediate 
     payment of tax is given in cases of jeopardy.
       An exception from the penalty applies if the failure is due 
     to reasonable cause. In addition, the Secretary may waive the 
     penalty for an inadvertent failure to deposit any tax by 
     specified first-time depositors.
     Accuracy-related penalties
       In general.--The accuracy-related penalties are imposed at 
     a rate of 20 percent of the portion of any underpayment that 
     is attributable, in relevant part, to (1) negligence, (2) any 
     substantial understatement of income tax, (3) any substantial 
     valuation misstatement, and (4) any reportable transaction 
     understatement. The penalty for a substantial valuation 
     misstatement is doubled for certain gross valuation 
     misstatements. In the case of a reportable transaction 
     understatement for which the transaction is not disclosed, 
     the penalty rate is 30 percent. These penalties are 
     coordinated with the fraud penalty. This statutory structure 
     operates to eliminate any stacking of the penalties.
       No penalty is to be imposed if it is shown that there was 
     reasonable cause for an underpayment and the taxpayer acted 
     in good faith, and in the case of a reportable transaction 
     understatement the relevant facts of the transaction have 
     been disclosed, there is or was substantial authority for the 
     taxpayer's treatment of such transaction, and the taxpayer 
     reasonably believed that such treatment was more likely than 
     not the proper treatment.
       Negligence or disregard for the rules or regulations.--If 
     an underpayment of tax is attributable to negligence, the 
     negligence penalty applies only to the portion of the 
     underpayment that is attributable to negligence. Negligence 
     means any failure to make a reasonable attempt to comply with 
     the provisions of the Code. Disregard includes any careless, 
     reckless or intentional disregard of the rules or 
     regulations.
       Substantial understatement of income tax.--Generally, an 
     understatement is substantial if the understatement exceeds 
     the greater of (1) 10 percent of the tax required to be shown 
     on the return for the tax year or (2) $5,000. In determining 
     whether a substantial understatement exists, the amount of 
     the understatement is reduced by any portion attributable to 
     an item if (1) the treatment of the item on the return is or 
     was supported by substantial authority, or (2) facts relevant 
     to the tax treatment of the item were adequately disclosed on 
     the return or on a statement attached to the return.
       Substantial valuation misstatement.--A penalty applies to 
     the portion of an underpayment that is attributable to a 
     substantial valuation misstatement. Generally, a substantial 
     valuation misstatement exists if the value or adjusted basis 
     of any property claimed on a return is 200 percent or more of 
     the correct value or adjusted basis. The amount of the 
     penalty for a substantial valuation misstatement is 20 
     percent of the amount of the underpayment if the value or 
     adjusted basis claimed is 200 percent or more but less than 
     400 percent of the correct value or adjusted basis. If the 
     value or adjusted basis claimed is 400 percent or more of the 
     correct value or adjusted basis, then the overvaluation is a 
     gross valuation misstatement.
       Reportable transaction understatement.--A penalty applies 
     to any item that is attributable to any listed transaction, 
     or to any reportable transaction (other than a listed 
     transaction) if a significant purpose of such reportable 
     transaction is tax avoidance or evasion.\124\
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     \124\ A reportable transaction is any transaction with 
     respect to which information is required to be included with 
     a return or statement because, as determined under 
     regulations prescribed under section 6011, such transaction 
     is of a type which the Secretary determines as having a 
     potential for tax avoidance or evasion. A listed transaction 
     is a reportable transaction 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. Sec. 6707A(c).
---------------------------------------------------------------------------
     Fraud penalty
       The fraud penalty is imposed at a rate of 75 percent of the 
     portion of any underpayment that is attributable to fraud. 
     The accuracy-related penalty does not to apply to any portion 
     of an underpayment on which the fraud penalty is imposed.
     Assessable penalties
       In addition to the penalties described above, the Code 
     imposes a number of additional penalties, including, for 
     example, penalties for failure to file (or untimely filing 
     of) information returns with respect to foreign trusts, and 
     penalties for failure to disclose any required information 
     with respect to a reportable transaction.
     Interest provisions
       Taxpayers are required to pay interest to the IRS whenever 
     there is an underpayment of tax. An underpayment of tax 
     exists whenever the correct amount of tax is not paid by the 
     last date prescribed for the payment of the tax. The last 
     date prescribed for the payment of the income tax is the 
     original due date of the return.
       Different interest rates are provided for the payment of 
     interest depending upon the type of taxpayer, whether the 
     interest relates to an underpayment or overpayment, and the 
     size of the underpayment or overpayment. Interest on 
     underpayments is compounded daily.
     Offshore Voluntary Compliance Initiative
       In January 2003, Treasury announced the Offshore Voluntary 
     Compliance Initiative (``OVCI'') to encourage the voluntary 
     disclosure of previously unreported income placed by 
     taxpayers in offshore accounts and accessed through credit 
     card or other financial arrangements. A taxpayer had to 
     comply with various requirements in order to participate in 
     the OVCI, including sending a written request to participate 
     in the program by April 15, 2003. This request was required 
     to include information about the taxpayer, the taxpayer's 
     introduction to the credit card or other financial 
     arrangements, and the names of parties that promoted the 
     transaction. Taxpayers entering into a closing agreement 
     under the OVCI are not liable for civil fraud, the fraudulent 
     failure to file penalty, or the civil information return 
     penalties. The taxpayer will pay back taxes, interest, and 
     certain accuracy-related and delinquency penalties.\125\
---------------------------------------------------------------------------
     \125\ Rev. Proc. 2003-11, 2003-4 C.B. 311.
---------------------------------------------------------------------------
     Voluntary disclosure policy
       A taxpayer's timely, voluntary disclosure of a substantial 
     unreported tax liability has long been an important factor in 
     deciding whether the taxpayer's case should ultimately be 
     referred for criminal prosecution. The voluntary disclosure 
     must be truthful, timely, and complete. The taxpayer must 
     show a willingness to cooperate (as well as actual 
     cooperation) with the IRS in determining the correct tax 
     liability. The taxpayer must make good-faith arrangements 
     with the IRS to pay in full the tax, interest, and any 
     penalties determined by the IRS to be applicable. A voluntary 
     disclosure does not guarantee immunity from prosecution. It 
     creates no substantive or procedural rights for 
     taxpayers.\126\
---------------------------------------------------------------------------
     \126\ Internal Revenue News Release 2002-135, IR-2002-135 
     (December 11, 2002).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment doubles the total amount of civil 
     penalties, interest, and fines applicable to a taxpayer who 
     underreported its Federal tax liability with respect to any 
     item involving a transaction of a type that was, or would 
     have been, within the scope of the OVCI, if the taxpayer did 
     not enter into a closing agreement pursuant to the OVCI or 
     otherwise voluntarily disclose to the IRS its participation 
     in such a transaction. For example, current arrangements 
     which are the same as, or substantially similar to, the 
     employee leasing arrangements described in Notice 2003-22 
     would have been within the scope of the OVCI.\127\
---------------------------------------------------------------------------
     \127\ 2003-18 C.B. 851. Notice 2003-22 classified such 
     arrangements as listed transactions.
---------------------------------------------------------------------------
       Under the Senate amendment, the determination of whether 
     any civil penalty is to be imposed with respect to such a 
     transaction (or underpayment attributable to such 
     transaction) is made without regard to whether a return has 
     been filed, whether there was reasonable cause for such 
     underpayment, and whether the taxpayer acted in

[[Page H7532]]

     good faith. However, the Secretary is granted the authority 
     to waive the application of the provision if the use of such 
     offshore payment mechanisms is incidental to the transaction 
     and, in the case of a trade or business, such use is 
     conducted in the ordinary course of the trade or business 
     engaged in by the taxpayer.
       The Secretary may retain an amount not to exceed 25 percent 
     of all amounts collected under this provision, to be used for 
     IRS enforcement and collection activities. In addition, the 
     Secretary must annually conduct a study and report to 
     Congress on the implementation of this provision,  including 
     statistics on the number of taxpayers affected and the 
     amounts of interest and penalties asserted, waived, and 
     assessed.
       Effective date.--The Senate amendment generally is 
     effective with respect to a taxpayer's open tax years on or 
     after date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     5. Modification of coordination rules for controlled foreign 
         corporation and passive foreign investment company 
         regimes (sec. 5505 of the Senate amendment)


                              Present Law

       The United States employs a ``worldwide'' tax system, under 
     which domestic corporations generally are taxed on all 
     income, whether derived in the United States or abroad. 
     Income earned by a domestic parent corporation from foreign 
     operations conducted by foreign corporate subsidiaries 
     generally is subject to U.S. tax when the income is 
     distributed as a dividend to the domestic corporation. Until 
     such repatriation, the U.S. tax on such income generally is 
     deferred. However, certain anti-deferral regimes may cause 
     the domestic parent corporation to be taxed on a current 
     basis in the United States with respect to certain categories 
     of passive or highly mobile income earned by its foreign 
     subsidiaries, regardless of whether the income has been 
     distributed as a dividend to the domestic parent corporation. 
     The main anti-deferral regimes in this context are the 
     controlled foreign corporation rules of subpart F \128\ and 
     the passive foreign investment company rules.\129\ Deferral 
     of U.S. tax is considered appropriate, on the other hand, 
     with respect to most types of active business income earned 
     abroad. A foreign tax credit generally is available to 
     offset, in whole or in part, the U.S. tax owed on foreign-
     source income, whether earned directly by the domestic 
     corporation, repatriated as an actual dividend, or included 
     under one of the anti-deferral regimes.\130\
---------------------------------------------------------------------------
     \128\ Secs. 951-964.
     \129\ Secs. 1291-1298.
     \130\ Secs. 901, 902, 960, and 1291(g).
---------------------------------------------------------------------------
       Subpart F,\131\ applicable to controlled foreign 
     corporations and their shareholders, is the main anti-
     deferral regime of relevance to a U.S.-based multinational 
     corporate group. A controlled foreign corporation generally 
     is defined as any foreign corporation if U.S. persons own 
     (directly, indirectly, or constructively) more than 50 
     percent of the corporation's stock (measured by vote or 
     value), taking into account only those U.S. persons that own 
     at least 10 percent of the stock (measured by vote 
     only).\132\ Under the subpart F rules, the United States 
     generally taxes the U.S. 10-percent shareholders of a 
     controlled foreign corporation on their pro rata shares of 
     certain income of the controlled foreign corporation 
     (referred to as ``subpart F income''), without regard to 
     whether the income is distributed to the shareholders.\133\
---------------------------------------------------------------------------
     \131\ Secs. 951-964.
     \132\ Secs. 951(b), 957, and 958.
     \133\ Sec. 951(a).
---------------------------------------------------------------------------
       Subpart F income generally includes passive income and 
     other income that is readily movable from one taxing 
     jurisdiction to another. Subpart F income consists of foreign 
     base company income,\134\ insurance income,\135\ and certain 
     income relating to international boycotts and other 
     violations of public policy.\136\ Foreign base company income 
     consists of foreign personal holding company income, which 
     includes passive income (e.g., dividends, interest, rents, 
     and royalties), as well as a number of categories of non-
     passive income, including foreign base company sales income 
     and foreign base company services income.\137\
---------------------------------------------------------------------------
     \134\ Sec. 954.
     \135\ Sec. 953.
     \136\ Sec. 952(a)(3) through (5).
     \137\ 134Sec. 954.
---------------------------------------------------------------------------
       In effect, the United States treats the U.S. 10-percent 
     shareholders of a controlled foreign corporation as having 
     received a current distribution out of the corporation's 
     subpart F income. In addition, the U.S. 10-percent 
     shareholders of a controlled foreign corporation are required 
     to include currently in income for U.S. tax purposes their 
     pro rata shares of the corporation's earnings invested in 
     U.S. property.\138\
---------------------------------------------------------------------------
     \138\ Secs. 951(a)(1)(B) and 956.
---------------------------------------------------------------------------
       The Tax Reform Act of 1986 established an additional anti-
     deferral regime, for passive foreign investment companies. A 
     passive foreign investment company generally is defined as 
     any foreign corporation if 75 percent or more of its gross 
     income for the taxable year consists of passive income, or 50 
     percent or more of its assets consists of assets that 
     produce, or are held for the production of, passive 
     income.\139\ Alternative sets of income inclusion rules apply 
     to U.S. persons that are shareholders in a passive foreign 
     investment company, regardless of their percentage ownership 
     in the company. One set of rules applies to passive foreign 
     investment companies that are ``qualified electing funds,'' 
     under which electing U.S. shareholders currently include in 
     gross income their respective shares of the company's 
     earnings, with a separate election to defer payment of tax, 
     subject to an interest charge, on income not currently 
     received.\140\ A second set of rules applies to passive 
     foreign investment companies that are not qualified electing 
     funds, under which U.S. shareholders pay tax on certain 
     income or gain realized through the company, plus an interest 
     charge that is attributable to the value of deferral.\141\ A 
     third set of rules applies to passive foreign investment 
     company stock that is marketable, under which electing U.S. 
     shareholders currently take into account as income (or loss) 
     the difference between the fair market value of the stock as 
     of the close of the taxable year and their adjusted basis in 
     such stock (subject to certain limitations), often referred 
     to as ``mark to market.'' \142\
---------------------------------------------------------------------------
     \139\ Sec. 1297.
     \140\ Secs. 1293 through 1295.
     \141\ Sec. 1291.
     \142\ Sec. 1296.
---------------------------------------------------------------------------
       Under section 1297(e), which was enacted in 1997 to address 
     the overlap of the passive foreign investment company rules 
     and subpart F, a controlled foreign corporation generally is 
     not also treated as a passive foreign investment company with 
     respect to a U.S. shareholder of the corporation. This 
     exception applies regardless of the likelihood that the U.S. 
     shareholder would actually be taxed under subpart F in the 
     event that the controlled foreign corporation earns subpart F 
     income. Thus, even in a case in which a controlled foreign 
     corporation's subpart F income would be allocated to a 
     different shareholder under the subpart F allocation rules, a 
     U.S. shareholder would still qualify for the exception from 
     the passive foreign investment company rules under section 
     1297(e).


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment adds an exception to section 1297(e) 
     for U.S. shareholders that face only a remote likelihood of 
     incurring a subpart F inclusion in the event that a 
     controlled foreign corporation earns subpart F income, thus 
     preserving the potential application of the passive foreign 
     investment company rules in such cases.
       Effective date.--The Senate amendment is effective for 
     taxable years of controlled foreign corporations beginning 
     after March 2, 2005, and for taxable years of U.S. 
     shareholders in which or with which such taxable years of 
     controlled foreign corporations end.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     6. Declaration by chief executive officer relating to Federal 
         annual corporate income tax return (sec. 5506 of the 
         Senate amendment)


                              Present Law

       The Code requires that the income tax return of a 
     corporation must be signed by either the president, the vice-
     president, the treasurer, the assistant treasurer, the chief 
     accounting officer, or any other officer of the corporation 
     authorized by the corporation to sign the return.
       The Code also imposes a criminal penalty on any person who 
     willfully signs any tax return under penalties of perjury 
     that that person does not believe to be true and correct with 
     respect to every material matter at the time of filing. If 
     convicted, the person is guilty of a felony; the Code imposes 
     a fine of not more than $100,000 ($500,000 in the case of a 
     corporation) or imprisonment of not more than three years, or 
     both, together with the costs of prosecution.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment requires that a corporation's Federal 
     annual income tax return include a declaration signed under 
     penalties of perjury by the chief executive officer of the 
     corporation that the corporation has in place processes and 
     procedures to ensure that the return complies with the 
     Internal Revenue Code and that the CEO was provided 
     reasonable assurance of the accuracy of all material aspects 
     of the return. This declaration is part of the income tax 
     return. The provision is in addition to the requirement of 
     present law as to the signing of the income tax return 
     itself. Because a CEO's duties generally do not require a 
     detailed or technical understanding of the corporation's tax 
     return, it is anticipated that this declaration of the CEO 
     will be more limited in scope than the declaration of the 
     officer required to sign the return itself.
       The provision provides that the Secretary of the Treasury 
     shall prescribe the matters to which the declaration of the 
     CEO applies. It is intended that the declaration help insure 
     that the preparation and completion of the corporation's tax 
     return be given an appropriate level of care. For example, it 
     is anticipated that the CEO would declare that processes and 
     procedures have been implemented to ensure that the return 
     complies with the Code and all regulations and rules 
     promulgated thereunder. Although appropriate processes and 
     procedures can vary for each taxpayer depending on the size 
     and nature of the taxpayer's business, in every case the CEO 
     should be briefed on all material aspects of the 
     corporation's tax return by the

[[Page H7533]]

     corporation's chief financial officer (or another person 
     authorized to sign the return under present law).
       Under the Senate amendment, if the corporation does not 
     have a chief executive officer, the IRS may designate another 
     officer of the corporation; otherwise, no other person is 
     permitted to sign the declaration. It is intended that the 
     IRS issue general guidance, such as a revenue procedure, to: 
     (1) address situations when a corporation does not have a 
     chief executive officer; and (2) define who the chief 
     executive officer is, in situations (for example) when the 
     primary official bears a different title, when a corporation 
     has multiple chief executive officers, or when the 
     corporation is a foreign corporation and the CEO is not a 
     U.S. resident.\143\ It is intended that, in every instance, 
     the highest ranking corporate officer (regardless of title) 
     sign this declaration.
---------------------------------------------------------------------------
     \143\ With respect to foreign corporations, it is intended 
     that the rules for signing this declaration generally 
     parallel the present-law rules for signing the return. See 
     Treas. Reg. sec. 1.6062-1(a)(3).
---------------------------------------------------------------------------
       The provision does not apply to the income tax returns of 
     mutual funds; \144\ they are required to be signed as under 
     present law.
---------------------------------------------------------------------------
     \144\ The provision does, however, apply to the income tax 
     returns of mutual fund management companies and advisors.
---------------------------------------------------------------------------
       Effective date.--The Senate amendment applies to Federal 
     annual tax returns for taxable years ending after the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     7. Grant Treasury regulatory authority to address foreign tax 
         credit transactions involving inappropriate separation of 
         foreign taxes from related foreign income (sec. 5507 of 
         the Senate amendment)


                              Present Law

       The United States employs a ``worldwide'' tax system, under 
     which residents generally are taxed on all income, whether 
     derived in the United States or abroad. In order to mitigate 
     the possibility of double taxation arising from overlapping 
     claims of the United States and a source country to tax the 
     same item of income, the United States provides a credit for 
     foreign income taxes paid or accrued, subject to several 
     conditions and limitations.
       For purposes of the foreign tax credit, regulations provide 
     that a foreign tax is treated as being paid by ``the person 
     on whom foreign law imposes legal liability for such tax.'' 
     \145\ Thus, for example, if a U.S. corporation owns an 
     interest in a foreign partnership, the U.S. corporation can 
     claim foreign tax credits for the tax that is imposed on it 
     as a partner in the foreign entity. This would be true under 
     the regulations even if the U.S. corporation elected to treat 
     the foreign entity as a corporation for U.S. tax purposes. In 
     such a case, if the foreign entity does not meet the 
     definition of a controlled foreign corporation or does not 
     generate income that is subject to current inclusion under 
     the rules of subpart F, the income generated by the foreign 
     entity might never be reported on a U.S. return, and yet the 
     U.S. corporation might take the position that it can claim 
     credits for taxes imposed on that income. This is one example 
     of how a taxpayer might attempt to separate foreign taxes 
     from the related foreign income, and thereby attempt to claim 
     a foreign tax credit under circumstances in which there is no 
     threat of double taxation.
---------------------------------------------------------------------------
     \145\ Treas. Reg. sec. 1.901-2(f)(1).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment provides regulatory authority for the 
     Treasury Department to address transactions that involve the 
     inappropriate separation of foreign taxes from the related 
     foreign income in cases in which taxes are imposed on any 
     person in respect of income of an entity. Regulations issued 
     pursuant to this authority could provide for the disallowance 
     of a credit for all or a portion of the foreign taxes, or for 
     the allocation of the foreign taxes among the participants in 
     the transaction in a manner more consistent with the 
     economics of the transaction.
       Effective date.--The Senate amendment generally is 
     effective for transactions entered into after the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     8. Whistleblower reforms (sec. 5508 of the Senate amendment)


                              Present Law

       The Code authorizes the IRS to pay such sums as deemed 
     necessary for: ``(1) detecting underpayments of tax; and (2) 
     detecting and bringing to trial and punishment persons guilty 
     of violating the internal revenue laws or conniving at the 
     same.'' \146\ Amounts are paid based on a percentage of tax, 
     fines, and penalties (but not interest) actually collected 
     based on the information provided. For specific information 
     that caused the investigation and resulted in recovery, the 
     IRS administratively has set the reward in an amount not to 
     exceed 15 percent of the amounts recovered. For information, 
     although not specific, that nonetheless caused the 
     investigation and was of value in the determination of tax 
     liabilities, the reward is not to exceed 10 percent of the 
     amount recovered. For information that caused the 
     investigation, but had no direct relationship to the 
     determination of tax liabilities, the reward is not to exceed 
     one percent of the amount recovered. The reward ceiling is 
     $10 million (for payments made after November 7, 2002), and 
     the reward floor is $100. No reward will be paid if the 
     recovery was so small as to call for payment of less than 
     $100 under the above formulas. Both the ceiling and 
     percentages can be increased with a special agreement. The 
     Code permits the IRS to disclose return information pursuant 
     to a contract for tax administration services.\147\
---------------------------------------------------------------------------
     \146\ Sec. 7623.
     \147\ Sec. 6103(n).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment reforms the reward program for 
     individuals who provide information regarding violations of 
     the tax laws to the Secretary. Generally, the provision 
     establishes a reward floor of 15 percent of the collected 
     proceeds (including penalties, interest, additions to tax and 
     additional amounts) if the IRS moves forward with an 
     administrative or judicial action based on information 
     brought to the IRS's attention by an individual. The 
     provision caps the available reward at 30 percent of the 
     collected proceeds. The provision permits awards of lesser 
     amounts (but no less than 10 percent) if the action was based 
     principally on allegations (other than information provided 
     by the individual) resulting from a judicial or 
     administrative hearing, government report, hearing, audit, 
     investigation, or from the news media.
       The Senate amendment creates a Whistleblower Office within 
     the IRS to administer the reward program. The Whistleblower 
     Office may seek assistance from the individual providing 
     information or from his or her legal representative, and may 
     reimburse the costs incurred by any legal representative out 
     of the amount of the reward. To the extent the disclosure of 
     returns or return information is required to render such 
     assistance, the disclosure must be pursuant to an IRS tax 
     administration contract.
       Effective date.--The Senate amendment is effective for 
     information provided on or after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     9. Denial of deduction for certain fines, penalties, and 
         other amounts (sec. 5509 of the Senate amendment)


                              Present Law

       Under present law, no deduction is allowed as a trade or 
     business expense under section 162(a) for the payment of a 
     fine or similar penalty to a government for the violation of 
     any law (sec. 162(f)). The enactment of section 162(f) in 
     1969 codified existing case law that denied the deductibility 
     of fines as ordinary and necessary business expenses on the 
     grounds that ``allowance of the deduction would frustrate 
     sharply defined national or State policies proscribing the 
     particular types of conduct evidenced by some governmental 
     declaration thereof.'' \148\
---------------------------------------------------------------------------
     \148\ S. Rep. 91-552, 91st Cong, 1st Sess., 273-74 (1969), 
     referring to Tank Truck Rentals, Inc. v. Commissioner, 356 
     U.S. 30 (1958).
---------------------------------------------------------------------------
       Treasury regulation section 1.162-21(b)(1) provides that a 
     fine or similar penalty includes an amount: (1) paid pursuant 
     to conviction or a plea of guilty or nolo contendere for a 
     crime (felony or misdemeanor) in a criminal proceeding; (2) 
     paid as a civil penalty imposed by Federal, State, or local 
     law, including additions to tax and additional amounts and 
     assessable penalties imposed by chapter 68 of the Code; (3) 
     paid in settlement of the taxpayer's actual or potential 
     liability for a fine or penalty (civil or criminal); or (4) 
     forfeited as collateral posted in connection with a 
     proceeding which could result in imposition of such a fine or 
     penalty. Treasury regulation section 1.162-21(b)(2) provides, 
     among other things, that compensatory damages (including 
     damages under section 4A of the Clayton Act (15 U.S.C. 15a), 
     as amended) paid to a government do not constitute a fine or 
     penalty.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment modifies the rules regarding the 
     determination whether payments are nondeductible payments of 
     fines or penalties under section 162(f). In particular, the 
     Senate amendment generally provides that amounts paid or 
     incurred (whether by suit, agreement, or otherwise) to, or at 
     the direction of, a government in relation to the violation 
     of any law or the investigation or inquiry into the potential 
     violation of any law \149\ are nondeductible under any 
     provision of the income tax provisions.\150\ The Senate 
     amendment applies to deny a deduction for any such payments, 
     including those where there is no admission of

[[Page H7534]]

     guilt or liability and those made for the purpose of avoiding 
     further investigation or litigation. An exception applies to 
     payments that the taxpayer establishes are restitution 
     (including remediation of property) and that are identified 
     as restitution in the court order or settlement.\151\
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     \149\ The Senate amendment does not affect amounts paid or 
     incurred in performing routine audits or reviews such as 
     annual audits that are required of all organizations or 
     individuals in a similar business sector, or profession, as a 
     requirement for being allowed to conduct business. However, 
     if the government or regulator raised an issue of compliance 
     and a payment is required in settlement of such issue, the 
     Senate amendment would affect that payment.
     \150\ The Senate amendment provides that such amounts are 
     nondeductible under chapter 1 of the Internal Revenue Code.
     \151\ The Senate amendment does not affect the treatment of 
     antitrust payments made under section 4 of the Clayton Act, 
     which will continue to be governed by the provisions of 
     section 162(g).
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       An exception also applies to any amount paid or incurred as 
     taxes due.
       The Senate amendment is intended to apply only where a 
     government (or other entity treated in a manner similar to a 
     government under the amendment) is a complainant or 
     investigator with respect to the violation or potential 
     violation of any law.\152\
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     \152\ Thus, for example, the Senate amendment would not apply 
     to payments made by one private party to another in a lawsuit 
     between private parties, merely because a judge or jury 
     acting in the capacity as a court directs the payment to be 
     made. The mere fact that a court enters a judgment or directs 
     a result in a private dispute does not cause a payment to be 
     made ``at the direction of a government'' for purposes of the 
     provision.
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       It is intended that a payment will be treated as 
     restitution only if substantially all of the payment is 
     required to be paid to the specific persons, or in relation 
     to the specific property, actually harmed by the conduct of 
     the taxpayer that resulted in the payment. Thus, a payment to 
     or with respect to a class substantially broader than the 
     specific persons or property that were actually harmed (e.g., 
     to a class including similarly situated persons or property) 
     does not qualify as restitution.\153\ Restitution is limited 
     to the amount that bears a substantial quantitative 
     relationship to the harm caused by the past conduct or 
     actions of the taxpayer that resulted in the payment in 
     question. If the party harmed is a government or other 
     entity, then restitution includes payment to such harmed 
     government or entity, provided the payment bears a 
     substantial quantitative relationship to the harm. However, 
     restitution does not include reimbursement of government 
     investigative or litigation costs, or payments to 
     whistleblowers.
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     \153\ Similarly, a payment to a charitable organization 
     benefiting a broader class than the persons or property 
     actually harmed, or to be paid out without a substantial 
     quantitative relationship to the harm caused, would not 
     qualify as restitution. Under the Senate amendment, such a 
     payment not deductible under section 162 would also not be 
     deductible under section 170.
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       Amounts paid or incurred (whether by suit, agreement, or 
     otherwise) to, or at the direction of, any self-regulatory 
     entity that regulates a financial market or other market that 
     is a qualified board or exchange under section 1256(g)(7), 
     and that is authorized to impose sanctions (e.g., the 
     National Association of Securities Dealers) are likewise 
     subject to the provision if paid in relation to a violation, 
     or investigation or inquiry into a potential violation, of 
     any law (or any rule or other requirement of such entity). To 
     the extent provided in regulations, amounts paid or incurred 
     to, or at the direction of, any other nongovernmental entity 
     that exercises self-regulatory powers as part of performing 
     an essential governmental function are similarly subject to 
     the provision. The exception for payments that the taxpayer 
     establishes are restitution likewise applies in these cases.
       No inference is intended as to the treatment of payments as 
     nondeductible fines or penalties under present law. In 
     particular, the Senate amendment is not intended to limit the 
     scope of present-law section 162(f) or the regulations 
     thereunder.
       Effective date.--The Senate amendment is effective for 
     amounts paid or incurred on or after the date of enactment; 
     however the Senate amendment does not apply to amounts paid 
     or incurred under any binding order or agreement entered into 
     before such date. Any order or agreement requiring court 
     approval is not a binding order or agreement for this 
     purpose unless such approval was obtained before the date 
     of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     10. Freeze of interest suspension rules with respect to 
         listed transactions (sec. 5510 of the Senate amendment)


                              Present Law

       In general, interest and penalties accrue during periods 
     for which taxes were unpaid without regard to whether the 
     taxpayer was aware that there was tax due. The Code suspends 
     the accrual of certain penalties and interest starting 18 
     months after the filing of the tax return \154\ if the IRS 
     has not sent the taxpayer a notice specifically stating the 
     taxpayer's liability and the basis for the liability within 
     the specified period. Interest and penalties resume 21 days 
     after the IRS sends the required notice to the taxpayer. The 
     provision is applied separately with respect to each item or 
     adjustment. The provision does not apply where a taxpayer has 
     self-assessed the tax. The suspension only applies to 
     taxpayers who file a timely tax return. The provision applies 
     only to individuals and does not apply to the failure to pay 
     penalty, in the case of fraud, or with respect to criminal 
     penalties.
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     \154\ If the return is filed before the due date, for this 
     purpose it is considered to have been filed on the due date.
---------------------------------------------------------------------------
       The suspension of interest does not apply to interest 
     accruing after October 3, 2004 with respect to underpayments 
     resulting from listed transactions or undisclosed reportable 
     transactions.


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, the exception for listed 
     transactions (but not the exception for undisclosed 
     reportable transactions) also applies to interest accruing on 
     or before October 3, 2004. However, taxpayers remain eligible 
     for the present-law suspension of interest if, as of May 9, 
     2005, (1) the taxpayer is participating in (and eventually 
     reaches resolution via) a published IRS settlement initiative 
     with respect to the listed transaction, or (2) the year in 
     which the underpayment occurred is barred by the statute of 
     limitations as of May 9, 2005.
       Effective date.--The Senate amendment is effective as if 
     included in the provisions of the American Jobs Creation Act 
     of 2004 to which it relates.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     11. Repeal loss deferral exception for qualified 
         transportation property (sec. 5511 of the Senate 
         amendment)


                              Present Law

       Present law provides for the deferral of losses 
     attributable to certain tax exempt use property, generally 
     effective for leases entered into after March 12, 2004. 
     However, the deferral provision does not apply to property 
     located in the United States that is subject to a lease with 
     respect to which a formal application: (1) was submitted for 
     approval to the Federal Transit Administration (an agency of 
     the Department of Transportation) after June 30, 2003, and 
     before March 13, 2004; (2) is approved by the Federal Transit 
     Administration before January 1, 2006; and (3) includes a 
     description and the fair market value of such property.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment repeals the exception for Federal 
     Transit Administration approved leases so that the general 
     effective date of the present law loss deferral provisions 
     applies to such leases.
       Effective date.--The Senate amendment is effective as if 
     included in the enactment of the American Jobs Creation Act 
     of 2004.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     12. Impose mark to market tax on individuals who expatriate 
         (sec. 5512 of Senate amendment)


                              Present Law

     In general
       U.S. citizens and residents generally are subject to U.S 
     income taxation on their worldwide income. The U.S. tax may 
     be reduced or offset by a credit allowed for foreign income 
     taxes paid with respect to foreign source income. Nonresident 
     aliens are taxed at a flat rate of 30 percent (or a lower 
     treaty rate) on certain types of passive income derived from 
     U.S. sources, and at regular graduated rates on net profits 
     derived from a U.S. trade or business. The estates of 
     nonresident aliens generally are subject to estate tax on 
     U.S.-situated property (e.g., real estate and tangible 
     property located within the United States and stock in a 
     U.S. corporation). Nonresident aliens generally are 
     subject to gift tax on transfers by gift of U.S.-situated 
     property (e.g., real estate and tangible property located 
     within the United States, but excluding intangibles, such 
     as stock, regardless of where they are located).
     Income tax rules with respect to expatriates
       For the 10 taxable years after an individual relinquishes 
     his or her U.S. citizenship or terminates his or her U.S. 
     residency \155\ with a principal purpose of avoiding U.S. 
     taxes, the individual is subject to an alternative method of 
     income taxation that is generally applicable to nonresident 
     aliens (the ``alternative tax regime''). Generally, the 
     individual is subject to income tax only on U.S.-source 
     income \156\ at the rates applicable to U.S. citizens for the 
     10-year period.
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     \155\ An individual continues to be treated as a U.S. citizen 
     or long-term resident for U.S. Federal tax purposes, 
     including for purposes of section 7701(b)(10), until the 
     individual: (1) gives notice of an expatriating act or 
     termination of residency (with the requisite intent to 
     relinquish citizenship or terminate residency) to the 
     Secretary of State or the Secretary of Homeland Security 
     respectively; and (2) provides a statement in accordance with 
     section 6039G.
     \156\ For this purpose, however, U.S.-source income has a 
     broader scope than it does typically in the Code.
---------------------------------------------------------------------------
       A former citizen or former long-term resident is subject to 
     the alternative tax regime for a 10-year period following 
     citizenship relinquishment or residency termination, unless 
     the former citizen or former long-term resident: (1) 
     establishes that his or her average annual net income tax 
     liability for the five preceding years does not exceed 
     $127,000 for 2005 (adjusted annually for inflation) \157\ and 
     his or her net worth does not exceed $2 million, or 
     alternatively satisfies limited, objective exceptions for 
     dual citizens and minors who have had no substantial contact 
     with the United States; and (2) certifies under penalties of 
     perjury that he or she has

[[Page H7535]]

     complied with all U.S. Federal tax obligations for the 
     preceding five years and provides such evidence of compliance 
     as the Secretary of the Treasury may require.
---------------------------------------------------------------------------
     \157\ Rev. Proc. 2004-71, 2004-50 I.R.B. 970.
---------------------------------------------------------------------------
       The alternative tax regime does not apply to any individual 
     for any taxable year during the 10-year period following 
     citizenship relinquishment or residency termination if such 
     individual is present in the United States for more than 30 
     days in the calendar year ending in such taxable year. 
     Instead, such individual is treated as a U.S. citizen or 
     resident for such taxable year and therefore is taxed on his 
     or her worldwide income.
       Gifts of stock of certain closely-held foreign corporations 
     by a former citizen or former long-term resident who is 
     subject to the alternative tax regime are subject to gift tax 
     if the gift is made within the 10-year period after 
     citizenship relinquishment or residency termination. The gift 
     tax rule applies if: (1) the former citizen or former long-
     term resident, before making the gift, directly or indirectly 
     owns 10 percent or more of the total combined voting power of 
     all classes of stock entitled to vote of the foreign 
     corporation; and (2) directly or indirectly, is considered to 
     own more than 50 percent of (a) the total combined voting 
     power of all classes of stock entitled to vote in the foreign 
     corporation, or (b) the total value of the stock of such 
     corporation. If this stock ownership test is met, then 
     taxable gifts of the former citizen or former long-term 
     resident include that proportion of the fair market value of 
     the foreign stock transferred by the individual, at the time 
     of the gift, which the fair market value of any assets owned 
     by such foreign corporation and situated in the United States 
     (at the time of the gift) bears to the total fair market 
     value of all assets owned by such foreign corporation (at the 
     time of the gift).
       This gift tax rule applies to a former citizen or former 
     long-term resident who is subject to the alternative tax 
     regime and who owns stock in a foreign corporation at the 
     time of the gift, regardless of how such stock was acquired 
     (e.g., whether issued originally to the donor, purchased, or 
     received as a gift or bequest).
       Former citizens and former long-term residents are required 
     to file an annual return for each year following citizenship 
     relinquishment or residency termination in which they are 
     subject to the alternative tax regime. The annual return is 
     required even if no U.S. Federal income tax is due. The 
     annual return requires certain information, including 
     information on the permanent home of the individual, the 
     individual's country of residence, the number of days the 
     individual was present in the United States for the year, and 
     detailed information about the individual's income and assets 
     that are subject to the alternative tax regime. This 
     requirement includes information relating to foreign stock 
     potentially subject to the special estate tax rule of section 
     2107(b) and the gift tax rules.
       If the individual fails to file the statement in a timely 
     manner or fails correctly to include all the required 
     information, the individual is required to pay a penalty of 
     $5,000. The $5,000 penalty does not apply if it is shown that 
     the failure is due to reasonable cause and not to willful 
     neglect.


                               House Bill

       No provision.


                            Senate Amendment

     In general
       The Senate amendment generally subjects certain U.S. 
     citizens who relinquish their U.S. citizenship and certain 
     long-term U.S. residents who terminate their U.S. residence 
     to tax on the net unrealized gain in their property as if 
     such property were sold for fair market value on the day 
     before the expatriation or residency termination. Gain from 
     the deemed sale is taken into account at that time without 
     regard to other Code provisions; any loss from the deemed 
     sale generally would be taken into account to the extent 
     otherwise provided in the Code. Any net gain on the deemed 
     sale is recognized to the extent it exceeds $600,000 ($1.2 
     million in the case of married individuals filing a joint 
     return, both of whom relinquish citizenship or terminate 
     residency). The $600,000 amount would be increased by a cost 
     of living adjustment factor for calendar years after 2005.
     Individuals covered
       Under the provision, the mark-to-market tax applies to U.S. 
     citizens who relinquish citizenship and long-term residents 
     who terminate U.S. residency. An individual is a long-term 
     resident if he or she was a lawful permanent resident for at 
     least eight out of the 15 taxable years ending with the year 
     in which the termination of residency occurs. An individual 
     is considered to terminate long-term residency when either 
     the individual ceases to be a lawful permanent resident 
     (i.e., loses his or her green card status), or the individual 
     is treated as a resident of another country under a tax 
     treaty and the individual does not waive the benefits of the 
     treaty.
       Exceptions from the mark-to-market tax are provided in two 
     situations. The first exception applies to an individual who 
     was born with citizenship both in the United States and in 
     another country; provided that (1) as of the expatriation 
     date the individual continues to be a citizen of, and is 
     taxed as a resident of, such other country, and (2) the 
     individual was not a resident of the United States for the 
     five taxable years ending with the year of expatriation. The 
     second exception applies to a U.S. citizen who relinquishes 
     U.S. citizenship before reaching age 18 and a half, provided 
     that the individual was a resident of the United States for 
     no more than five taxable years before such relinquishment.
     Election to be treated as a U.S. citizen
       Under the provision, an individual is permitted to make an 
     irrevocable election to continue to be taxed as a U.S. 
     citizen with respect to all property that otherwise is 
     covered by the expatriation tax. This election is an ``all or 
     nothing'' election; an individual is not permitted to elect 
     this treatment for some property but not for other property. 
     The election, if made, would apply to all property that would 
     be subject to the expatriation tax and to any property the 
     basis of which is determined by reference to such property. 
     Under this election, the individual would continue to pay 
     U.S. income taxes at the rates applicable to U.S. citizens 
     following expatriation on any income generated by the 
     property and on any gain realized on the disposition of the 
     property. In addition, the property would continue to be 
     subject to U.S. gift, estate, and generation-skipping 
     transfer taxes. In order to make this election, the taxpayer 
     would be required to waive any treaty rights that would 
     preclude the collection of the tax.
       The individual also would be required to provide security 
     to ensure payment of the tax under this election in such 
     form, manner, and amount as the Secretary of the Treasury 
     requires. The amount of mark-to-market tax that would have 
     been owed but for this election (including any interest, 
     penalties, and certain other items) shall be a lien in favor 
     of the United States on all U.S.-situs property owned by the 
     individual. This lien shall arise on the expatriation date 
     and shall continue until the tax liability is satisfied, the 
     tax liability has become unenforceable by reason of lapse of 
     time, or the Secretary is satisfied that no further tax 
     liability may arise by reason of this provision. The rules of 
     section 6324A(d)(1), (3), and (4) (relating to liens arising 
     in connection with the deferral of estate tax under section 
     6166) apply to liens arising under this provision.
     Date of relinquishment of citizenship
       Under the provision, an individual is treated as having 
     relinquished U.S. citizenship on the earliest of four 
     possible dates: (1) the date that the individual renounces 
     U.S. nationality before a diplomatic or consular officer of 
     the United States (provided that the voluntary relinquishment 
     is later confirmed by the issuance of a certificate of loss 
     of nationality); (2) the date that the individual furnishes 
     to the State Department a signed statement of voluntary 
     relinquishment of U.S. nationality confirming the performance 
     of an expatriating act (again, provided that the voluntary 
     relinquishment is later confirmed by the issuance of a 
     certificate of loss of nationality); (3) the date that the 
     State Department issues a certificate of loss of nationality; 
     or (4) the date that a U.S. court cancels a naturalized 
     citizen's certificate of naturalization.
     Deemed sale of property upon expatriation or residency 
         termination
       The deemed sale rule of the provision generally applies to 
     all property interests held by the individual on the date of 
     relinquishment of citizenship or termination of residency. 
     Special rules apply in the case of trust interests, as 
     described below. U.S. real property interests, which remain 
     subject to U.S. tax in the hands of nonresident noncitizens, 
     generally are excepted from the provision. Regulatory 
     authority is granted to the Treasury to except other types of 
     property from the provision.
       Under the provision, an individual who is subject to the 
     mark-to-market tax is required to pay a tentative tax equal 
     to the amount of tax that would be due for a hypothetical 
     short tax year ending on the date the individual relinquished 
     citizenship or terminated residency. Thus, the tentative tax 
     is based on all income, gain, deductions, loss, and credits 
     of the individual for the year through such date, including 
     amounts realized from the deemed sale of property. The 
     tentative tax is due on the 90th day after the date of 
     relinquishment of citizenship or termination of residency.
     Retirement plans and similar arrangements
       Subject to certain exceptions, the provision applies to all 
     property interests held by the individual at the time of 
     relinquishment of citizenship or termination of residency. 
     Accordingly, such property includes an interest in an 
     employer-sponsored retirement plan or deferred compensation 
     arrangement as well as an interest in an individual 
     retirement account or annuity (i.e., an IRA).\158\ However, 
     the provision contains a special rule for an interest in a 
     ``qualified retirement plan.'' For purposes of the provision, 
     a ``qualified retirement plan'' includes an employer-
     sponsored qualified plan (sec. 401(a)), a qualified annuity 
     (sec. 403(a)), a tax-sheltered annuity (sec. 403(b)), an 
     eligible deferred compensation plan of a governmental 
     employer (sec. 457(b)), or an IRA (sec. 408). The special 
     retirement plan rule applies also, to the extent provided in 
     regulations, to any foreign plan or similar retirement 
     arrangement or program. An interest in a trust that is part 
     of a qualified retirement plan or other arrangement that is 
     subject to the special retirement plan rule is not subject to

[[Page H7536]]

     the rules for interests in trusts (discussed below).
---------------------------------------------------------------------------
     \158\ Application of the provision is not limited to an 
     interest that meets the definition of property under section 
     83 (relating to property transferred in connection with the 
     performance of services).
---------------------------------------------------------------------------
       Under the special rule, an amount equal to the present 
     value of the individual's vested, accrued benefit under a 
     qualified retirement plan is treated as having been received 
     by the individual as a distribution under the plan on the day 
     before the individual's relinquishment of citizenship or 
     termination of residency. It is not intended that the plan 
     would be deemed to have made a distribution for purposes of 
     the tax-favored status of the plan, such as whether a plan 
     may permit distributions before a participant has severed 
     employment. In the case of any later distribution to the 
     individual from the plan, the amount otherwise includible in 
     the individual's income as a result of the distribution is 
     reduced to reflect the amount previously included in income 
     under the special retirement plan rule. The amount of the 
     reduction applied to a distribution is the excess of: (1) the 
     amount included in income under the special retirement plan 
     rule over (2) the total reductions applied to any prior 
     distributions. However, under the provision, the retirement 
     plan, and any person acting on the plan's behalf, will treat 
     any later distribution in the same manner as the distribution 
     would be treated without regard to the special retirement 
     plan rule.
       It is expected that the Treasury Department will provide 
     guidance for determining the present value of an individual's 
     vested, accrued benefit under a qualified retirement plan, 
     such as the individual's account balance in the case of a 
     defined contribution plan or an IRA, or present value 
     determined under the qualified joint and survivor annuity 
     rules applicable to a defined benefit plan (sec. 417(e)).
     Deferral of payment of tax
       Under the provision, an individual is permitted to elect to 
     defer payment of the mark-to-market tax imposed on the deemed 
     sale of the property. Interest is charged for the period the 
     tax is deferred at a rate two percentage points higher than 
     the rate normally applicable to individual underpayments. 
     Under this election, the mark-to-market tax attributable to a 
     particular property is due when the property is disposed of 
     (or, if the property is disposed of in whole or in part in a 
     nonrecognition transaction, at such other time as the 
     Secretary may prescribe). The mark-to-market tax attributable 
     to a particular property is an amount that bears the same 
     ratio to the total mark-to-market tax for the year as the 
     gain taken into account with respect to such property bears 
     to the total gain taken into account under these rules for 
     the year. The deferral of the mark-to-market tax may not be 
     extended beyond the individual's death.
       In order to elect deferral of the mark-to-market tax, the 
     individual is required to provide adequate security to the 
     Treasury to ensure that the deferred tax and interest will be 
     paid. Other security mechanisms are permitted provided that 
     the individual establishes to the satisfaction of the 
     Secretary that the security is adequate. In the event that 
     the security provided with respect to a particular property 
     subsequently becomes inadequate and the individual fails to 
     correct the situation, the deferred tax and the interest with 
     respect to such property will become due. As a further 
     condition to making the election, the individual is required 
     to consent to the waiver of any treaty rights that would 
     preclude the collection of the tax.
       The deferred amount (including any interest, penalties, and 
     certain other items) shall be a lien in favor of the United 
     States on all U.S.-situs property owned by the individual. 
     This lien shall arise on the expatriation date and shall 
     continue until the tax liability is satisfied, the tax 
     liability has become unenforceable by reason of lapse of 
     time, or the Secretary is satisfied that no further tax 
     liability may arise by reason of this provision. The rules of 
     section 6324A(d)(1), (3), and (4) (relating to liens arising 
     in connection with the deferral of estate tax under section 
     6166) apply to liens arising under this provision.
     Interests in trusts
       Under the provision, detailed rules apply to trust 
     interests held by an individual at the time of relinquishment 
     of citizenship or termination of residency. The treatment of 
     trust interests depends on whether the trust is a qualified 
     trust. A trust is a qualified trust if a court within the 
     United States is able to exercise primary supervision over 
     the administration of the trust and one or more U.S. persons 
     have the authority to control all substantial decisions of 
     the trust.
       Constructive ownership rules apply to a trust beneficiary 
     that is a corporation, partnership, trust, or estate. In such 
     cases, the shareholders, partners, or beneficiaries of the 
     entity are deemed to be the direct beneficiaries of the trust 
     for purposes of applying these provisions. In addition, an 
     individual who holds (or who is treated as holding) a trust 
     instrument at the time of relinquishment of citizenship or 
     termination of residency is required to disclose on his or 
     her tax return the methodology used to determine his or her 
     interest in the trust, and whether such individual knows (or 
     has reason to know) that any other beneficiary of the trust 
     uses a different method.
       Nonqualified trusts.--If an individual holds an interest in 
     a trust that is not a qualified trust, a special rule applies 
     for purposes of determining the amount of the mark-to-market 
     tax due with respect to such trust interest. The individual's 
     interest in the trust is treated as a separate trust 
     consisting of the trust assets allocable to such interest. 
     Such separate trust is treated as having sold its net assets 
     as of the date of relinquishment of citizenship or 
     termination of residency and having distributed the assets to 
     the individual, who then is treated as having recontributed 
     the assets to the trust. The individual is subject to the 
     mark-to-market tax with respect to any net income or gain 
     arising from the deemed distribution from the trust.
       The election to defer payment is available for the mark-to-
     market tax attributable to a nonqualified trust interest. 
     Interest is charged for the period the tax is deferred at a 
     rate two percentage points higher than the rate normally 
     applicable to individual underpayments. A beneficiary's 
     interest in a nonqualified trust is determined under all the 
     facts and circumstances, including the trust instrument, 
     letters of wishes, and historical patterns of trust 
     distributions.
       Qualified trusts.--If an individual has an interest in a 
     qualified trust, the amount of unrealized gain allocable to 
     the individual's trust interest is calculated at the time of 
     expatriation or residency termination. In determining this 
     amount, all contingencies and discretionary interests are 
     assumed to be resolved in the individual's favor (i.e., the 
     individual is allocated the maximum amount that he or she 
     could receive). The mark-to-market tax imposed on such gains 
     is collected when the individual receives distributions from 
     the trust, or if earlier, upon the  individual's death. 
     Interest is charged for the period the tax is deferred at 
     a rate two percentage points higher than the rate normally 
     applicable to individual underpayments.
       If an individual has an interest in a qualified trust, the 
     individual is subject to the mark-to market tax upon the 
     receipt of distributions from the trust. These distributions 
     also may be subject to other U.S. income taxes. If a 
     distribution from a qualified trust is made after the 
     individual relinquishes citizenship or terminates residency, 
     the mark-to-market tax is imposed in an amount equal to the 
     amount of the distribution multiplied by the highest tax rate 
     generally applicable to trusts and estates, but in no event 
     will the tax imposed exceed the deferred tax amount with 
     respect to the trust interest. For this purpose, the deferred 
     tax amount is equal to: (1) the tax calculated with respect 
     to the unrealized gain allocable to the trust interest at the 
     time of expatriation or residency termination; (2) increased 
     by interest thereon; and (3) reduced by any mark-to-market 
     tax imposed on prior trust distributions to the individual.
       If any individual's interest in a trust is vested as of the 
     expatriation date (e.g., if the individual's interest in the 
     trust is non-contingent and non-discretionary), the gain 
     allocable to the individual's trust interest is determined 
     based on the trust assets allocable to his or her trust 
     interest. If the individual's interest in the trust is not 
     vested as of the expatriation date (e.g., if the individual's 
     trust interest is a contingent or discretionary interest), 
     the gain allocable to his or her trust interest is determined 
     based on all of the trust assets that could be allocable to 
     his or her trust interest, determined by resolving all 
     contingencies and discretionary powers in the individual's 
     favor. In the case where more than one trust beneficiary is 
     subject to the expatriation tax with respect to trust 
     interests that are not vested, the rules are intended to 
     apply so that the same unrealized gain with respect to assets 
     in the trust is not taxed to both individuals.
       Mark-to-market taxes become due if the trust ceases to be a 
     qualified trust, the individual disposes of his or her 
     qualified trust interest, or the individual dies. In such 
     cases, the amount of mark-to-market tax equals the lesser of 
     (1) the tax calculated under the rules for nonqualified trust 
     interests as of the date of the triggering event, or (2) the 
     deferred tax amount with respect to the trust interest as of 
     that date.
       The tax that is imposed on distributions from a qualified 
     trust generally is deducted and withheld by the trustees. If 
     the individual does not agree to waive treaty rights that 
     would preclude collection of the tax, the tax with respect to 
     such distributions is imposed on the trust, the trustee is 
     personally liable for the tax, and any other beneficiary has 
     a right of contribution against such individual with respect 
     to the tax. Similar rules apply when the qualified trust 
     interest is disposed of, the trust ceases to be a qualified 
     trust, or the individual dies.
     Coordination with present-law alternative tax regime
       The provision provides a coordination rule with the 
     present-law alternative tax regime. Under the provision, the 
     expatriation income tax rules under section 877, and the 
     expatriation estate and gift tax rules under sections 2107 
     and 2501(a)(3) (described above), do not apply to a former 
     citizen or former long- term resident whose expatriation or 
     residency termination occurs on or after date of enactment. 
     In addition, section 7701(n) does not apply with respect to 
     any individual that expatriated on or after date of 
     enactment.
     Treatment of gifts and inheritances from a former citizen or 
         former long-term resident
       Under the provision, the exclusion from income provided in 
     section 102 (relating to exclusions from income for the value 
     of property acquired by gift or inheritance) does not apply 
     to the value of any property received by gift or inheritance 
     from a former citizen or former long-term resident (i.e., an 
     individual who relinquished U.S. citizenship or terminated 
     U.S. residency), subject to the

[[Page H7537]]

     exceptions described above relating to certain dual citizens 
     and minors. Accordingly, a U.S. taxpayer who receives a gift 
     or inheritance from such an individual is required to include 
     the value of such gift or inheritance in gross income and is 
     subject to U.S. tax on such amount. Having included the value 
     of the property in income, the recipient would then take a 
     basis in the property equal to that value. The tax does not 
     apply to property that is shown on a timely filed gift tax 
     return and that is a taxable gift by the former citizen or 
     former long-term resident, or property that is shown on a 
     timely filed estate tax return and included in the gross U.S. 
     estate of the former citizen or former long-term resident 
     (regardless of whether the tax liability shown on such a 
     return is reduced by credits, deductions, or exclusions 
     available under the estate and gift tax rules). In addition, 
     the tax does not apply to property in cases in which no 
     estate or gift tax return is required to be filed, where no 
     such return would have been required to be filed if the 
     former citizen or former long-term resident had not 
     relinquished citizenship or terminated residency, as the case 
     may be. Applicable gifts or bequests that are made in trust 
     are treated as made to the beneficiaries of the trust in 
     proportion to their respective interests in the trust.
     Immigration rules
       The provision amends the immigration rules that deny tax-
     motivated expatriates reentry into the United States by 
     removing the requirement that the expatriation be tax-
     motivated, and instead denies former citizens reentry into 
     the United States if the individual is determined not to be 
     in compliance with his or her tax obligations under the 
     provision's expatriation tax provisions (regardless of the 
     subjective motive for expatriating). For this purpose, the 
     provision permits the IRS to disclose certain items of return 
     information of an individual, upon written request of the 
     Attorney General or his delegate, as is necessary for making 
     a determination under section 212(a)(10)(E) of the 
     Immigration and Nationality Act. Specifically, the provision 
     would permit the IRS to disclose to the agency administering 
     section 212(a)(10)(E) whether such taxpayer is in compliance 
     with section 877A and identify the items of noncompliance. 
     Recordkeeping requirements, safeguards, and civil and 
     criminal penalties for unauthorized disclosure or inspection 
     would apply to return information disclosed under this 
     provision.
       Effective date.--The Senate amendment generally is 
     effective for U.S. citizens who relinquish citizenship or 
     long-term residents who terminate their residency on or after 
     date of enactment. The provisions relating to gifts and 
     inheritances are effective for gifts and inheritances 
     received from former citizens and former long-term residents 
     on or after date of enactment, whose expatriation or 
     residency termination occurs on or after such date. The 
     provisions relating to former citizens under U.S. immigration 
     laws are effective on or after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     13. Disallowance of deduction for punitive damages (sec. 5513 
         of the Senate amendment)


                              Present Law

       In general, a deduction is allowed for all ordinary and 
     necessary expenses that are paid or incurred by the taxpayer 
     during the taxable year in carrying on any trade or 
     business.\159\ However, no deduction is allowed for any 
     payment that is made to an official of any governmental 
     agency if the payment constitutes an illegal bribe or 
     kickback or if the payment is to an official or employee of a 
     foreign government and is illegal under Federal law.\160\ In 
     addition, no deduction is allowed under present law for any 
     fine or similar payment made to a government for violation of 
     any law.\161\ Furthermore, no deduction is permitted for two-
     thirds of any damage payments made by a taxpayer who is 
     convicted of a violation of the Clayton antitrust law or any 
     related antitrust law.\162\
---------------------------------------------------------------------------
     \159\ Sec. 162(a).
     \160\ Sec. 162(c).
     \161\ Sec. 162(f).
     \162\ Sec. 162(g).
---------------------------------------------------------------------------
       In general, gross income does not include amounts received 
     on account of personal physical injuries and physical 
     sickness.\163\ However, this exclusion does not apply to 
     punitive damages.\164\
---------------------------------------------------------------------------
     \163\ Sec. 104(a).
     \164\ Sec. 104(a)(2).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment denies any deduction for punitive 
     damages that are paid or incurred by the taxpayer as a result 
     of a judgment or in settlement of a claim. If the liability 
     for punitive damages is covered by insurance, any such 
     punitive damages paid by the insurer are included in gross 
     income of the insured person and the insurer is required to 
     report such amounts to both the insured person and the IRS.
       Effective date.--The Senate amendment is effective for 
     punitive damages that are paid or incurred on or after the 
     date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     14. Application of earnings stripping rules to partners which 
         are corporations (sec. 5514 of the Senate amendment)


                              Present Law

       Present law provides rules to limit the ability of U.S. 
     corporations to reduce the U.S. tax on their U.S.-source 
     income through earnings stripping transactions. Section 
     163(j) specifically addresses earnings stripping involving 
     interest payments, by limiting the deductibility of interest 
     paid to certain related parties (``disqualified 
     interest''),\165\ if the payor's debt-equity ratio exceeds 
     1.5 to 1 and the payor's net interest expense exceeds 50 
     percent of its ``adjusted taxable income'' (generally taxable 
     income computed without regard to deductions for net interest 
     expense, net operating losses, and depreciation, 
     amortization, and depletion). Disallowed interest amounts can 
     be carried forward indefinitely. In addition, excess 
     limitation (i.e., any excess of the 50-percent limit over a 
     company's net interest expense for a given year) can be 
     carried forward three years.
---------------------------------------------------------------------------
     \165\ This interest also may include interest paid to 
     unrelated parties in certain cases in which a related party 
     guarantees the debt.
---------------------------------------------------------------------------
       Proposed Treasury regulations provide that a corporate 
     partner's proportionate share of the liabilities of a 
     partnership is treated as liabilities incurred directly by 
     the corporate partner for purposes of applying the earnings 
     stripping limitation to its own interest payments.\166\ The 
     proposed Treasury regulations provide that interest paid or 
     accrued to a partnership is treated as paid or accrued to the 
     partners of the partnership in proportion to each partner's 
     distributive share of the partnership's interest income for 
     the taxable year.\167\ In addition, the proposed Treasury 
     regulations provide that interest expense paid or accrued by 
     a partnership is treated as paid or accrued by the partners 
     of the partnership in proportion to each partner's 
     distributive share, for purposes of the earnings stripping 
     rules.\168\
---------------------------------------------------------------------------
     \166\ Prop. Treas. Reg. sec. 1.163(j)-3(b)(3).
     \167\ Prop. Treas. Reg. sec. 1.163(j)-2(e)(4).
     \168\ Prop. Treas. Reg. sec. 1.163(j)-2(e)(5).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment codifies the approach of the proposed 
     Treasury regulations by providing that a corporate partner's 
     share of partnership debt is attributed to the corporate 
     partner for purposes of applying the earnings stripping rules 
     to the corporate partner.
       Effective date.--The Senate amendment is effective for 
     taxable years beginning after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     15. Prohibition on deferral of certain stock option and 
         restricted stock gains (sec. 5515 of the Senate 
         amendment)


                              Present Law

       Section 83 applies to transfers of property in connection 
     with the performance of services. Under section 83, if, in 
     connection with the performance of services, property is 
     transferred to any person other than the person for whom such 
     services are performed, the excess of the fair market value 
     of such property over the amount (if any) paid for the 
     property is includible in income at the first time that the 
     property is transferable or not subject to substantial risk 
     of forfeiture.
       Stock granted to an employee (or other service provider) is 
     subject to the rules that apply under section 83. When stock 
     is vested and transferred to an employee, the excess of the 
     fair market value of the stock over the amount, if any, the 
     employee pays for the stock is includible in the employee's 
     income for the year in which the transfer occurs.
       The income taxation of a nonqualified stock option is 
     determined under section 83 and depends on whether the option 
     has a readily ascertainable fair market value. If the 
     nonqualified option does not have a readily ascertainable 
     fair market value at the time of grant, no amount is 
     includible in the gross income of the recipient with respect 
     to the option until the recipient exercises the option. The 
     transfer of stock on exercise of the option is subject to the 
     general rules of section 83. That is, if vested stock is 
     received on exercise of the option, the excess of the fair 
     market value of the stock over the option price is includible 
     in the recipient's gross income as ordinary income in the 
     taxable year in which the option is exercised. If the stock 
     received on exercise of the option is not vested, the excess 
     of the fair market value of the stock at the time of vesting 
     over the option price is includible in the recipient's income 
     for the year in which vesting occurs unless the recipient 
     elects to apply section 83 at the time of exercise.
       Other forms of stock-based compensation are also subject to 
     the rules of section 83.


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, gains attributable to stock 
     options (including exercises of stock options), vesting of 
     restricted stock, and other compensation based on employer 
     securities (including employer securities) cannot be deferred 
     by exchanging such amounts for a right to receive a future 
     payment. Except as provided by the Secretary, if

[[Page H7538]]

     a taxpayer exchanges (1) an option to purchase employer 
     securities, (2) employer securities, or (3) any other 
     property based on employer securities for a right to receive 
     future payments, an amount equal to the present value of such 
     right (or such other amount as the Secretary specifies) is 
     required to be included in gross income for the taxable year 
     of the exchange. The provision applies even if the future 
     right to payment is treated as an unfunded and unsecured 
     promise to pay. The provision applies when there is in 
     substance an exchange, even if the transaction is not 
     formally structured as an exchange.
       The provision is not intended to imply that such practices 
     result in permissive deferral of income under present law.
       Effective date.--The Senate amendment is effective for 
     exchanges after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     16. Limitation on employer deduction for certain 
         entertainment expenses (sec. 5516 of the Senate 
         amendment)


                              Present Law

     In general
       Under present law, no deduction is allowed with respect to 
     (1) an activity generally considered to be entertainment, 
     amusement or recreation, unless the taxpayer establishes that 
     the item was directly related to (or, in certain cases, 
     associated with) the active conduct of the taxpayer's trade 
     or business, or (2) a facility (e.g., an airplane) used in 
     connection with such activity.\169\ The Code includes a 
     number of exceptions to the general rule disallowing 
     deductions of entertainment expenses. Under one exception, 
     the deduction disallowance rule does not apply to expenses 
     for goods, services, and facilities to the extent that the 
     expenses are reported by the taxpayer as compensation and 
     wages to an employee.\170\ The deduction disallowance rule 
     also does not apply to expenses paid or incurred by the 
     taxpayer for goods, services, and facilities to the extent 
     that the expenses are includible in the gross income of a 
     recipient who is not an employee (e.g., a nonemployee 
     director) as compensation for services rendered or as a prize 
     or award.\171\ The exceptions apply only to the extent that 
     amounts are properly reported by the company as compensation 
     and wages or otherwise includible in income. In no event can 
     the amount of the deduction exceed the amount of the actual 
     cost, even if a greater amount is includible in income.
---------------------------------------------------------------------------
     \169\ Sec. 274(a).
     \170\ Sec. 274(e)(2). As discussed below, a special rule 
     applies in the case of specified individuals.
     \171\ Sec. 274(e)(9).
---------------------------------------------------------------------------
       Except as otherwise provided, gross income includes 
     compensation for services, including fees, commissions, 
     fringe benefits, and similar items. In general, an employee 
     or other service provider must include in gross income the 
     amount by which the fair value of a fringe benefit exceeds 
     the amount paid by the individual. Treasury regulations 
     provide rules regarding the valuation of fringe benefits, 
     including flights on an employer-provided aircraft.\172\ In 
     general, the value of a non-commercial flight is determined 
     under the base aircraft valuation formula, also known as the 
     Standard Industry Fare Level formula or ``SIFL''.\173\ If the 
     SIFL valuation rules do not apply, the value of a flight on a 
     company-provided aircraft is generally equal to the amount 
     that an individual would have to pay in an arm's-length 
     transaction to charter the same or a comparable aircraft for 
     that period for the same or a comparable flight.\174\
---------------------------------------------------------------------------
     \172\ Treas. Reg. sec. 1.61-21.
     \173\ Treas. Reg. sec. 1.61-21(g).
     \174\ Treas. Reg. sec. 1.61-21(b)(6).
---------------------------------------------------------------------------
       In the context of an employer providing an aircraft to 
     employees for nonbusiness (e.g., vacation) flights, the 
     exception for expenses treated as compensation was 
     interpreted in Sutherland Lumber-Southwest, Inc. v. 
     Commissioner (``Sutherland Lumber'') as not limiting the 
     company's deduction for operation of the aircraft to the 
     amount of compensation reportable to its employees,\175\ 
     which can result in a deduction many times larger than the 
     amount required to be included in income. In many cases, the 
     individual including amounts attributable to personal travel 
     in income directly benefits from the enhanced deduction, 
     resulting in a net deduction for the personal use of the 
     company aircraft.
---------------------------------------------------------------------------
     \175\ Sutherland Lumber-Southwest, Inc. v. Comm., 114 T.C. 
     197 (2000), aff'd, 255 F.3d 495 (8th Cir. 2001), acq., AOD 
     2002-02 (Feb. 11, 2002).
---------------------------------------------------------------------------
     Specified individuals
       In the case of specified individuals, the exceptions to the 
     general entertainment expense disallowance rule for expenses 
     treated as compensation or includible in income apply only to 
     the extent of the amount of expenses treated as compensation 
     or includible in income of the specified individual. For 
     example, a company's deduction attributable to aircraft 
     operating costs and other expenses for a specified 
     individual's vacation use of a company aircraft is limited to 
     the amount reported as compensation to the specified 
     individual. Sutherland Lumber was overturned with respect to 
     specified individuals.
       Specified individuals are individuals who, with respect to 
     an employer or other service recipient, are subject to the 
     requirements of section 16(a) of the Securities and Exchange 
     Act of 1934, or would be subject to such requirements if the 
     employer or service recipient were an issuer of equity 
     securities referred to in section 16(a). Such individuals 
     generally include officers (as defined by section 
     16(a)),\176\ directors, and 10-percent-or-greater owners of 
     private and publicly-held companies.
---------------------------------------------------------------------------
     \176\ An officer is defined as the president, principal 
     financial officer, principal accounting officer (or, if there 
     is no such accounting officer, the controller), any vice-
     president in charge of a principal business unit, division or 
     function (such as sales, administration or finance), any 
     other officer who performs a policy-making function, or any 
     other person who performs similar policy-making functions.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, in the case of all individuals, 
     the exceptions to the general entertainment expense 
     disallowance rule for expenses treated as compensation or 
     includible in income apply only to the extent of the amount 
     of expenses treated as compensation or includible in income. 
     Thus, under those exceptions, no deduction is allowed with 
     respect to expenses for (1) a nonbusiness activity generally 
     considered to be entertainment, amusement or recreation, or 
     (2) a facility (e.g., an airplane) used in connection with 
     such activity to the extent that such expenses exceed the 
     amount treated as compensation or includible in income. The 
     provision is intended to overturn Sutherland Lumber for all 
     individuals. As under present law, the exceptions apply only 
     if amounts are properly reported by the company as 
     compensation and wages or otherwise includible in income.
       Effective date.--The Senate amendment is effective for 
     expenses incurred after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     17. Increase in penalty for bad checks and money orders (sec. 
         5517 of the Senate amendment)


                              Present Law

       The Code imposes a penalty for bad checks and money orders 
     on the person who tendered such check or money order.\177\ 
     The penalty is two percent of the amount of the bad check or 
     money order. The minimum penalty is $15 (or, if less, the 
     amount of the check), applicable to checks that are less than 
     $750.
---------------------------------------------------------------------------
     \177\ Sec. 6657.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment increases the minimum penalty for bad 
     checks and money orders to $25 (or, if less, the amount of 
     the check), applicable to checks that are less than $1,250.
       Effective date.--The Senate amendment applies to checks or 
     money orders received after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     18. Elimination of double deduction of mining exploration and 
         development costs under the minimum tax (sec. 5518 of the 
         Senate amendment)


                              Present Law

       Under present law, mining development costs are expensed in 
     computing taxable income, unless either the deferred expense 
     method is elected under section under section 616(b) or 10-
     year amortization is elected under section 59(e). In 
     addition, a taxpayer may elect to expense mining exploration 
     costs under section 617 or amortize the costs over a 10-year 
     period under section 59(e). Also, a deduction for depletion 
     is allowed with respect to mines. One method of computing the 
     allowance for depletion is the percentage depletion method 
     under section 613 that is based on the income of the mining 
     property and is not limited by the adjusted basis of the 
     property.
       In determining alternative minimum taxable income 
     (``AMTI'') mining exploration and development costs with 
     respect to a mine are required to be capitalized and 
     amortized over a 10-year period, unless the deferred expense 
     method is elected under section 616(b).\178\ In addition, the 
     deduction for percentage depletion is limited to the adjusted 
     basis of the property at the end of the taxable year (without 
     regard to the depletion deduction for the year).\179\ 
     Treasury regulations provide that the adjusted basis for this 
     purpose is the same as the adjusted basis for purposes of 
     determining gain or loss from the sale or other disposition 
     of the property.\180\ Treasury regulations \181\ further 
     provide that the expenditures for development and exploration 
     of mines treated as deferred expenses are chargeable to 
     capital account and shall be an adjustment to the basis of 
     the property to which they relate. The adjusted basis of the 
     property is reduced by depletion deductions and the 
     deductions for mining and exploration expenses in the taxable 
     year the deductions are allowable.
---------------------------------------------------------------------------
     \178\ Sec. 56(a)(2).
     \179\ Sec. 57(a)(1).
     \180\ Treas. Reg. sec. 1.57-1(h)(3).
     \181\ Treas. Reg. sec. 1.1016-5(f).
---------------------------------------------------------------------------
       Under the rules, notwithstanding the adjusted basis 
     limitation on percentage depletion, a taxpayer may deduct 
     more than 100 percent of its exploration and development 
     costs in computing AMTI. For example, assume a taxpayer 
     incurs $1 million in development costs in 2005 with respect 
     to a mine that has a zero basis and that the deferred

[[Page H7539]]

     expense method is not elected. Also, assume that the 
     deduction for percentage depletion (without regard to the 
     basis limitation) for 2005 is $900,000. Under present law, in 
     computing AMTI, the taxpayer is allowed to deduct $100,000 
     per year in development costs for each of the 10 taxable 
     years beginning in 2005, and, in addition, is allowed to 
     deduct percentage depletion of $900,000 in 2005, for a total 
     of $1.9 million in deductions.


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, the deduction for depletion 
     under the alternative minimum tax is amended by excluding 
     from the adjusted basis of any mining property, the amount of 
     mining exploration and development costs that may be allowed 
     as a deduction to the taxpayer in computing AMTI in a future 
     taxable year.
       In the example described under present law, the $1 million 
     development costs will be amortized over a 10-year period and 
     no amount will be allowed as a deduction for depletion in 
     computing AMTI.\182\
---------------------------------------------------------------------------
     \182\ If the taxpayer elects the deferred expense method 
     under section 616(b) or 10-year amortization under section 
     59(e), the deduction for depletion will also be zero.
---------------------------------------------------------------------------
       Effective date.--The Senate amendment applies to taxable 
     years beginning after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     19. Clarification of the economic substance doctrine (sec. 
         5521 of the Senate amendment)


                              Present Law

     In general
       The Code provides specific rules regarding the computation 
     of taxable income, including the amount, timing, source, and 
     character of items of income, gain, loss and deduction. These 
     rules are designed to provide for the computation of taxable 
     income in a manner that provides for a degree of specificity 
     to both taxpayers and the government. Taxpayers generally may 
     plan their transactions in reliance on these rules to 
     determine the federal income tax consequences arising from 
     the transactions.
       In addition to the statutory provisions, courts have 
     developed several doctrines that can be applied to deny the 
     tax benefits of tax motivated transactions, notwithstanding 
     that the transaction may satisfy the literal requirements of 
     a specific tax provision. The common-law doctrines are not 
     entirely distinguishable, and their application to a given 
     set of facts is often blurred by the courts and the IRS. 
     Although these doctrines serve an important role in the 
     administration of the tax system, invocation of these 
     doctrines can be seen as at odds with an objective, ``rule-
     based'' system of taxation. Nonetheless, courts have applied 
     the doctrines to deny tax benefits arising from certain 
     transactions.\183\
---------------------------------------------------------------------------
     \183\ See, e.g., ACM Partnership v. Commissioner, 157 F.3d 
     231 (3d Cir. 1998), aff'g 73 T.C.M. (CCH) 2189 (1997), cert. 
     denied 526 U.S. 1017 (1999).
---------------------------------------------------------------------------
       A common-law doctrine applied with increasing frequency is 
     the ``economic substance'' doctrine. In general, this 
     doctrine denies tax benefits arising from transactions that 
     do not result in a meaningful change to the taxpayer's 
     economic position other than a purported reduction in federal 
     income tax.\184\
---------------------------------------------------------------------------
     \184\ Closely related doctrines also applied by the courts 
     (sometimes interchangeable with the economic substance 
     doctrine) include the ``sham transaction doctrine'' and the 
     ``business purpose doctrine''. See, e.g., Knetsch v. United 
     States, 364 U.S. 361 (1960) (denying interest deductions on a 
     ``sham transaction'' whose only purpose was to create the 
     deductions).
---------------------------------------------------------------------------


                      Economic substance doctrine

       Courts generally deny claimed tax benefits if the 
     transaction that gives rise to those benefits lacks economic 
     substance independent of tax considerations--notwithstanding 
     that the purported activity actually occurred. The tax court 
     has described the doctrine as follows:
       The tax law . . . requires that the intended transactions 
     have economic substance separate and distinct from economic 
     benefit achieved solely by tax reduction. The doctrine of 
     economic substance becomes applicable, and a judicial remedy 
     is warranted, where a taxpayer seeks to claim tax benefits, 
     unintended by Congress, by means of transactions that serve 
     no economic purpose other than tax savings.\185\
---------------------------------------------------------------------------
     \185\ ACM Partnership v. Commissioner, 73 T.C.M. at 2215.
---------------------------------------------------------------------------
       Business purpose doctrine
       Another common law doctrine that overlays and is often 
     considered together with (if not part and parcel of) the 
     economic substance doctrine is the business purpose doctrine. 
     The business purpose test is a subjective inquiry into the 
     motives of the taxpayer--that is, whether the taxpayer 
     intended the transaction to serve some useful non-tax 
     purpose. In making this determination, some courts have 
     bifurcated a transaction in which independent activities with 
     non-tax objectives have been combined with an unrelated item 
     having only tax-avoidance objectives in order to disallow the 
     tax benefits of the overall transaction.\186\
---------------------------------------------------------------------------
     \186\ ACM Partnership v. Commissioner, 157 F.3d at 256 n.48.
---------------------------------------------------------------------------
     Application by the courts
       Elements of the doctrine
       There is a lack of uniformity regarding the proper 
     application of the economic substance doctrine.\187\ Some 
     courts apply a conjunctive test that requires a taxpayer to 
     establish the presence of both economic substance (i.e., the 
     objective component) and business purpose (i.e., the 
     subjective component) in order for the transaction to survive 
     judicial scrutiny.\188\ A narrower approach used by some 
     courts is to conclude that either a business purpose or 
     economic substance is sufficient to respect the 
     transaction).\189\ A third approach regards economic 
     substance and business purpose as ``simply more precise 
     factors to consider'' in determining whether a transaction 
     has any practical economic effects other than the creation of 
     tax benefits.\190\
---------------------------------------------------------------------------
     \187\ ``The casebooks are glutted with [economic substance] 
     tests. Many such tests proliferate because they give the 
     comforting illusion of consistency and precision. They often 
     obscure rather than clarify.'' Collins v. Commissioner, 857 
     F.2d 1383, 1386 (9th Cir. 1988).
     \188\ See, e.g., Pasternak v. Commissioner, 990 F.2d 893, 898 
     (6th Cir. 1993) (``The threshold question is whether the 
     transaction has economic substance. If the answer is yes, the 
     question becomes whether the taxpayer was motivated by profit 
     to participate in the transaction.'').
     \189\ See, e.g., Rice's Toyota World v. Commissioner, 752 
     F.2d 89, 91-92 (4th Cir. 1985) (``To treat a transaction as a 
     sham, the court must find that the taxpayer was motivated by 
     no business purposes other than obtaining tax benefits in 
     entering the transaction, and, second, that the transaction 
     has no economic substance because no reasonable possibility 
     of a profit exists.''); IES Industries v. United States, 253 
     F.3d 350, 358 (8th Cir. 2001) (``In determining whether a 
     transaction is a sham for tax purposes [under the Eighth 
     Circuit test], a transaction will be characterized as a sham 
     if it is not motivated by any economic purpose out of tax 
     considerations (the business purpose test), and if it is 
     without economic substance because no real potential for 
     profit exists (the economic substance test).''). As noted 
     earlier, the economic substance doctrine and the sham 
     transaction doctrine are similar and sometimes are applied 
     interchangeably. For a more detailed discussion of the sham 
     transaction doctrine, see, e.g., Joint Committee on Taxation, 
     Study of Present-Law Penalty and Interest Provisions as 
     Required by Section 3801 of the Internal Revenue Service 
     Restructuring and Reform Act of 1998 (including Provisions 
     Relating to Corporate Tax Shelters) (JCS-3-99) at 182.
     \190\ See, e.g., ACM Partnership v. Commissioner, 157 F.3d at 
     247; James v. Commissioner, 899 F.2d 905, 908 (10th Cir. 
     1995); Sacks v. Commissioner, 69 F.3d 982, 985 (9th Cir. 
     1995) (``Instead, the consideration of business purpose and 
     economic substance are simply more precise factors to 
     consider . . . We have repeatedly and carefully noted that 
     this formulation cannot be used as a `rigid two-step 
     analysis'.'').
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       Profit potential
       There also is a lack of uniformity regarding the necessity 
     and level of profit potential necessary to establish economic 
     substance. Since the time of Gregory v. Helvering,\191\ 
     several courts have denied tax benefits on the grounds that 
     the subject transactions lacked profit potential.\192\ In 
     addition, some courts have applied the economic substance 
     doctrine to disallow tax benefits in transactions in which a 
     taxpayer was exposed to risk and the transaction had a profit 
     potential, but the court concluded that the economic risks 
     and profit potential were insignificant when compared to the 
     tax benefits.\193\ Under this analysis, the taxpayer's profit 
     potential must be more than nominal. Conversely, other courts 
     view the application of the economic substance doctrine as 
     requiring an objective determination of whether a 
     ``reasonable possibility of profit'' from the transaction 
     existed apart from the tax benefits.\194\ In these cases, in 
     assessing whether a reasonable possibility of profit exists, 
     it is sufficient if there is a nominal amount of pre-tax 
     profit as measured against expected net tax benefits.
---------------------------------------------------------------------------
     \191\ 293 U.S. 465 (1935).
     \192\ See, e.g., Knetsch, 364 U.S. at 361; Goldstein v. 
     Commissioner, 364 F.2d 734 (2d Cir. 1966) (holding that an 
     unprofitable, leveraged acquisition of Treasury bills, and 
     accompanying prepaid interest deduction, lacked economic 
     substance); Ginsburg v. Commissioner, 35 T.C.M. (CCH) 860 
     (1976) (holding that a leveraged cattle-breeding program 
     lacked economic substance).
     \193\ See, e.g., Goldstein v. Commissioner, 364 F.2d at 739-
     40 (disallowing deduction even though taxpayer had a 
     possibility of small gain or loss by owning Treasury bills); 
     Sheldon v. Commissioner, 94 T.C. 738, 768 (1990) (stating, 
     ``potential for gain . . . is infinitesimally nominal and 
     vastly insignificant when considered in comparison with the 
     claimed deductions'').
     \194\ See, e.g., Rice's Toyota World v. Commissioner, 752 
     F.2d at 94 (the economic substance inquiry requires an 
     objective determination of whether a reasonable possibility 
     of profit from the transaction existed apart from tax 
     benefits); Compaq Computer Corp. v. Commissioner, 277 F.3d at 
     781 (applied the same test, citing Rice's Toyota World); IES 
     Industries v. United States, 253 F.3d at 354 (the application 
     of the objective economic substance test involves determining 
     whether there was a ``reasonable possibility of profit . . . 
     apart from tax benefits.'').
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment clarifies and enhances the application 
     of the economic substance doctrine. The Senate amendment 
     provides that, in a case in which a court determines that the 
     economic substance doctrine is relevant to a transaction (or 
     a series of transactions), such transaction (or series of 
     transactions) has economic substance (and thus satisfies the 
     economic substance doctrine) only if the taxpayer establishes 
     that (1) the transaction changes in a meaningful way (apart 
     from Federal income tax consequences) the taxpayer's economic 
     position, and (2) the taxpayer has a substantial non-

[[Page H7540]]

     tax purpose for entering into such transaction and the 
     transaction is a reasonable means of accomplishing such 
     purpose.\195\
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     \195\ If the tax benefits are clearly contemplated and 
     expected by the language and purpose of the relevant 
     authority, it is not intended that such tax benefits be 
     disallowed if the only reason for such disallowance is that 
     the transaction fails the economic substance doctrine as 
     defined in this provision.
---------------------------------------------------------------------------
       The Senate amendment does not change current law standards 
     used by courts in determining when to utilize an economic 
     substance analysis.\196\ Also, the Senate amendment does not 
     alter the court's ability to aggregate, disaggregate or 
     otherwise recharacterize a transaction when applying the 
     doctrine.\197\ The Senate amendment provides a uniform 
     definition of economic substance, but does not alter the 
     flexibility of the courts in other respects.
---------------------------------------------------------------------------
     \196\ See, e.g., Treas. Reg. sec. 1.269-2, stating that 
     characteristic of circumstances in which a deduction 
     otherwise allowed will be disallowed are those in which the 
     effect of the deduction, credit, or other allowance would be 
     to distort the liability of the particular taxpayer when the 
     essential nature of the transaction or situation is examined 
     in the light of the basic purpose or plan which the 
     deduction, credit, or other allowance was designed by the 
     Congress to effectuate.
     \197\ See, e.g., Minnesota Tea Co. v. Helvering, 302 U.S. 
     609, 613 (1938) (``A given result at the end of a straight 
     path is not made a different result because reached by 
     following a devious path.'').
---------------------------------------------------------------------------
     Conjunctive analysis
       The Senate amendment clarifies that the economic substance 
     doctrine involves a conjunctive analysis--there must be an 
     objective inquiry regarding the effects of the transaction on 
     the taxpayer's economic position, as well as a subjective 
     inquiry regarding the taxpayer's motives for engaging in the 
     transaction. Under the Senate amendment, a transaction must 
     satisfy both tests--i.e., it must change in a meaningful way 
     (apart from Federal income tax consequences) the taxpayer's 
     economic position, and the taxpayer must have a substantial 
     non-tax purpose for entering into such transaction (and the 
     transaction is a reasonable means of accomplishing such 
     purpose)--in order to satisfy the economic substance 
     doctrine. This clarification eliminates the disparity that 
     exists among the circuits regarding the application of the 
     doctrine, and modifies its application in those circuits in 
     which either a change in economic position or a non-tax 
     business purpose (without having both) is sufficient to 
     satisfy the economic substance doctrine.
     Non-tax business purpose
       The Senate amendment provides that a taxpayer's non-tax 
     purpose for entering into a transaction (the second prong in 
     the analysis) must be ``substantial,'' and that the 
     transaction must be ``a reasonable means'' of accomplishing 
     such purpose. Under this formulation, the non-tax purpose for 
     the transaction must bear a reasonable relationship to the 
     taxpayer's normal business operations or investment 
     activities.\198\
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     \198\ See, e.g., Treas. Reg. sec. 1.269-2(b) (stating that a 
     distortion of tax liability indicating the principal purpose 
     of tax evasion or avoidance might be evidenced by the fact 
     that ``the transaction was not undertaken for reasons germane 
     to the conduct of the business of the taxpayer''). Similarly, 
     in ACM Partnership v. Commissioner, 73 T.C.M. (CCH) 2189 
     (1997), the court stated: ``Key to [the determination of 
     whether a transaction has economic substance] is that the 
     transaction must be rationally related to a useful nontax 
     purpose that is plausible in light of the taxpayer's conduct 
     and useful in light of the taxpayer's economic situation and 
     intentions. Both the utility of the stated purpose and the 
     rationality of the means chosen to effectuate it must be 
     evaluated in accordance with commercial practices in the 
     relevant industry. A rational relationship between purpose 
     and means ordinarily will not be found unless there was a 
     reasonable expectation that the nontax benefits would be at 
     least commensurate with the transaction costs.'' [citations 
     omitted]
     See also Martin McMahon Jr., Economic Substance, Purposive 
     Activity, and Corporate Tax Shelters, 94 Tax Notes 1017, 1023 
     (Feb. 25, 2002) (advocates ``confining the most rigorous 
     application of business purpose, economic substance, and 
     purposive activity tests to transactions outside the ordinary 
     course of the taxpayer's business--those transactions that do 
     not appear to contribute to any business activity or 
     objective that the taxpayer may have had apart from tax 
     planning but are merely loss generators.''); Mark P. Gergen, 
     The Common Knowledge of Tax Abuse, 54 SMU L. Rev. 131, 140 
     (Winter 2001) (``The message is that you can pick up tax gold 
     if you find it in the street while going about your business, 
     but you cannot go hunting for it.'').
---------------------------------------------------------------------------
       In determining whether a taxpayer has a substantial non-tax 
     business purpose, an objective of achieving a favorable 
     accounting treatment for financial reporting purposes will 
     not be treated as having a substantial non-tax purpose.\199\ 
     Furthermore, a transaction that is expected to increase 
     financial accounting income as a result of generating tax 
     deductions or losses without a corresponding financial 
     accounting charge (i.e., a permanent book-tax difference) 
     \200\ should not be considered to have a substantial non-tax 
     purpose unless a substantial non-tax purpose exists apart 
     from the financial accounting benefits.\201\
---------------------------------------------------------------------------
     \199\ However, if the tax benefits are clearly contemplated 
     and expected by the language and purpose of the relevant 
     authority, such tax benefits should not be disallowed solely 
     because the transaction results in a favorable accounting 
     treatment. An example is the repealed foreign sales 
     corporation rules.
     \200\ This includes tax deductions or losses that are 
     anticipated to be recognized in a period subsequent to the 
     period the financial accounting benefit is recognized. For 
     example, FAS 109 in some cases permits the recognition of 
     financial accounting benefits prior to the period in which 
     the tax benefits are recognized for income tax purposes.
     \201\ Claiming that a financial accounting benefit 
     constitutes a substantial non-tax purpose fails to consider 
     the origin of the accounting benefit (i.e., reduction of 
     taxes) and significantly diminishes the purpose for having a 
     substantial non-tax purpose requirement. See, e.g., American 
     Electric Power, Inc. v. U.S., 136 F. Supp. 2d 762, 791-92 
     (S.D. Ohio, 2001) (``AEP's intended use of the cash flows 
     generated by the [corporate-owned life insurance] plan is 
     irrelevant to the subjective prong of the economic substance 
     analysis. If a legitimate business purpose for the use of the 
     tax savings `were sufficient to breathe substance into a 
     transaction whose only purpose was to reduce taxes, [then] 
     every sham tax-shelter device might succeed,' '') (citing 
     Winn-Dixie v. Commissioner, 113 T.C. 254, 287 (1999)).
---------------------------------------------------------------------------
       By requiring that a transaction be a ``reasonable means'' 
     of accomplishing its non-tax purpose, the Senate amendment 
     reiterates the present-law ability of the courts to bifurcate 
     a transaction in which independent activities with non-tax 
     objectives are combined with an unrelated item having only 
     tax-avoidance objectives in order to disallow the tax 
     benefits of the overall transaction.\202\
---------------------------------------------------------------------------
     \202\ See, e.g., ACM Partnership v. Commissioner, 157 F.3d at 
     256 n.48.
---------------------------------------------------------------------------
     Profit potential
       Under the Senate amendment, a taxpayer may rely on factors 
     other than profit potential to demonstrate that a transaction 
     results in a meaningful change in the taxpayer's economic 
     position; the proposal merely sets forth a minimum threshold 
     of profit potential if that test is relied on to demonstrate 
     a meaningful change in economic position. If a taxpayer 
     relies on a profit potential, however, the present value of 
     the reasonably expected pre-tax profit must be substantial in 
     relation to the present value of the expected net tax 
     benefits that would be allowed if the transaction were 
     respected.\203\ Moreover, the profit potential must exceed a 
     risk-free rate of return. In addition, in determining pre-tax 
     profit, fees and other transaction expenses and foreign taxes 
     are treated as expenses.
---------------------------------------------------------------------------
     \203\ Thus, a ``reasonable possibility of profit'' will not 
     be sufficient to establish that a transaction has economic 
     substance.
---------------------------------------------------------------------------
       In applying the profit potential test to a lessor of 
     tangible property, depreciation, applicable tax credits (such 
     as the rehabilitation tax credit and the low income housing 
     tax credit), and any other deduction as provided in guidance 
     by the Secretary are not taken into account in measuring tax 
     benefits.
     Transactions with tax-indifferent parties
       The Senate amendment also provides special rules for 
     transactions with tax-indifferent parties. For this purpose, 
     a tax-indifferent party means any person or entity not 
     subject to Federal income tax, or any person to whom an item 
     would have no substantial impact on its income tax liability. 
     Under these rules, the form of a financing transaction will 
     not be respected if the present value of the tax deductions 
     to be claimed is substantially in excess of the present value 
     of the anticipated economic returns to the lender. Also, 
     the form of a transaction with a tax-indifferent party 
     will not be respected if it results in an allocation of 
     income or gain to the tax-indifferent party in excess of 
     the tax-indifferent party's economic gain or income or if 
     the transaction results in the shifting of basis on 
     account of overstating the income or gain of the tax-
     indifferent party.
     Other rules
       The Secretary may prescribe regulations which provide (1) 
     exemptions from the application of the proposal, and (2) 
     other rules as may be necessary or appropriate to carry out 
     the purposes of the proposal.
       No inference is intended as to the proper application of 
     the economic substance doctrine under present law. In 
     addition, except with respect to the economic substance 
     doctrine, the bill shall not be construed as altering or 
     supplanting any other common law doctrine (including the sham 
     transaction doctrine), and the Senate amendment shall be 
     construed as being additive to any such other doctrine.
       Effective date.--The Senate amendment applies to 
     transactions entered into after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     20. Penalty for understatements attributable to transactions 
         lacking economic substance, etc. (sec. 5522 of the Senate 
         amendment)


                              Present Law

     General accuracy-related penalty
       An accuracy-related penalty under section 6662 applies to 
     the portion of any underpayment that is attributable to (1) 
     negligence, (2) any substantial understatement of income tax, 
     (3) any substantial valuation misstatement, (4) any 
     substantial overstatement of pension liabilities, or (5) any 
     substantial estate or gift tax valuation understatement. If 
     the correct income tax liability exceeds that reported by the 
     taxpayer by the greater of 10 percent of the correct tax or 
     $5,000 (or, in the case of corporations, by the lesser of (a) 
     10 percent of the correct tax (or $10,000 if greater) or (b) 
     $10 million), then a substantial understatement exists and a 
     penalty may be imposed equal to 20 percent of the 
     underpayment of tax attributable to the understatement.\204\ 
     Except in the case of tax shelters,\205\ the amount of any 
     understatement is reduced by any portion attributable

[[Page H7541]]

     to an item if (1) the treatment of the item is supported by 
     substantial authority, or (2) facts relevant to the tax 
     treatment of the item were adequately disclosed and there was 
     a reasonable basis for its tax treatment. The Treasury 
     Secretary may prescribe a list of positions which the 
     Secretary believes do not meet the requirements for 
     substantial authority under this provision.
---------------------------------------------------------------------------
     \204\ Sec. 6662.
     \205\ A tax shelter is defined for this purpose as a 
     partnership or other entity, an investment plan or 
     arrangement, or any other plan or arrangement if a 
     significant purpose of such partnership, other entity, plan, 
     or arrangement is the avoidance or evasion of Federal income 
     tax. Sec. 6662(d)(2)(C).
---------------------------------------------------------------------------
       The section 6662 penalty generally is abated (even with 
     respect to tax shelters) in cases in which the taxpayer can 
     demonstrate that there was ``reasonable cause'' for the 
     underpayment and that the taxpayer acted in good faith.\206\ 
     The relevant regulations provide that reasonable cause exists 
     where the taxpayer ``reasonably relies in good faith on an 
     opinion based on a professional tax advisor's analysis of the 
     pertinent facts and authorities [that] . . . unambiguously 
     concludes that there is a greater than 50-percent likelihood 
     that the tax treatment of the item will be upheld if 
     challenged'' by the IRS.\207\
---------------------------------------------------------------------------
     \206\ Sec. 6664(c).
     \207\ Treas. Reg. sec. 1.6662-4(g)(4)(i)(B); Treas. Reg. sec. 
     1.6664-4(c).
---------------------------------------------------------------------------
     Listed transactions and reportable avoidance transactions
       In general
       A separate accuracy-related penalty under section 6662A 
     applies to ``listed transactions'' and to other ``reportable 
     transactions'' with a significant tax avoidance purpose 
     (hereinafter referred to as a ``reportable avoidance 
     transaction''). The penalty rate and defenses available to 
     avoid the penalty vary depending on whether the transaction 
     was adequately disclosed.
       Both listed transactions and reportable transactions are 
     allowed to be described by the Treasury department under 
     section 6707A(c), which imposes a penalty for failure 
     adequately to report such transactions under section 6011. A 
     reportable transaction is defined as one that the Treasury 
     Secretary determines is required to be disclosed because it 
     is determined to have a potential for tax avoidance or 
     evasion.\208\ A listed transaction is defined as a reportable 
     transaction which is the same as, or substantially similar 
     to, a transaction specifically identified by the Secretary as 
     a tax avoidance transaction for purposes of the reporting 
     disclosure requirements.\209\
---------------------------------------------------------------------------
     \208\ Sec. 6707A(c)(1).
     \209\ Sec. 6707A(c)(2).
---------------------------------------------------------------------------
       Disclosed transactions
       In general, a 20-percent accuracy-related penalty is 
     imposed on any understatement attributable to an adequately 
     disclosed listed transaction or reportable avoidance 
     transaction.\210\ The only exception to the penalty is if the 
     taxpayer satisfies a more stringent reasonable cause and good 
     faith exception (hereinafter referred to as the 
     ``strengthened reasonable cause exception''), which is 
     described below. The strengthened reasonable cause exception 
     is available only if the relevant facts affecting the tax 
     treatment are adequately disclosed, there is or was 
     substantial authority for the claimed tax treatment, and the 
     taxpayer reasonably believed that the claimed tax treatment 
     was more likely than not the proper treatment.
---------------------------------------------------------------------------
     \210\ Sec. 6662A(a).
---------------------------------------------------------------------------
       Undisclosed transactions
       If the taxpayer does not adequately disclose the 
     transaction, the strengthened reasonable cause exception is 
     not available (i.e., a strict-liability penalty generally 
     applies), and the taxpayer is subject to an increased penalty 
     equal to 30 percent of the understatement.\211\ However, a 
     taxpayer will be treated as having adequately disclosed a 
     transaction for this purpose if the IRS Commissioner has 
     separately rescinded the separate penalty under section 6707A 
     for failure to disclose a reportable transaction.\212\ The 
     IRS Commissioner is authorized to do this only if the failure 
     does not relate to a listed transaction and only if 
     rescinding the penalty would promote compliance and effective 
     tax administration.\213\
---------------------------------------------------------------------------
     \211\ Sec. 6662A(c).
     \212\ Sec. 6664(d).
     \213\ Sec. 6707A(d).
---------------------------------------------------------------------------
       A public entity that is required to pay a penalty for an 
     undisclosed listed or reportable transaction must disclose 
     the imposition of the penalty in reports to the SEC for such 
     periods as the Secretary shall specify. The disclosure to the 
     SEC applies without regard to whether the taxpayer determines 
     the amount of the penalty to be material to the reports in 
     which the penalty must appear; and any failure to disclose 
     such penalty in the reports is treated as a failure to 
     disclose a listed transaction. A taxpayer must disclose a 
     penalty in reports to the SEC once the taxpayer has exhausted 
     its administrative and judicial remedies with respect to the 
     penalty (or if earlier, when paid).\214\
---------------------------------------------------------------------------
     \214\ Sec. 6707A(e).
---------------------------------------------------------------------------
       Determination of the understatement amount
       The penalty is applied to the amount of any understatement 
     attributable to the listed or reportable avoidance 
     transaction without regard to other items on the tax return. 
     For purposes of this provision, the amount of the 
     understatement is determined as the sum of: (1) the product 
     of the highest corporate or individual tax rate (as 
     appropriate) and the increase in taxable income resulting 
     from the difference between the taxpayer's treatment of the 
     item and the proper treatment of the item (without regard to 
     other items on the tax return); \215\ and (2) the amount of 
     any decrease in the aggregate amount of credits which results 
     from a difference between the taxpayer's treatment of an item 
     and the proper tax treatment of such item.
---------------------------------------------------------------------------
     \215\ For this purpose, any reduction in the excess of 
     deductions allowed for the taxable year over gross income for 
     such year, and any reduction in the amount of capital losses 
     which would (without regard to section 1211) be allowed for 
     such year, shall be treated as an increase in taxable income. 
     Sec. 6662A(b).
---------------------------------------------------------------------------
       Except as provided in regulations, a taxpayer's treatment 
     of an item shall not take into account any amendment or 
     supplement to a return if the amendment or supplement is 
     filed after the earlier of when the taxpayer is first 
     contacted regarding an examination of the return or such 
     other date as specified by the Secretary.\216\
---------------------------------------------------------------------------
     \216\ Sec. 6662A(e)(3).
---------------------------------------------------------------------------
       Strengthened reasonable cause exception
       A penalty is not imposed under the provision with respect 
     to any portion of an understatement if it is shown that there 
     was reasonable cause for such portion and the taxpayer acted 
     in good faith. Such a showing requires: (1) adequate 
     disclosure of the facts affecting the transaction in 
     accordance with the regulations under section 6011; \217\ (2) 
     that there is or was substantial authority for such 
     treatment; and (3) that the taxpayer reasonably believed that 
     such treatment was more likely than not the proper treatment. 
     For this purpose, a taxpayer will be treated as having a 
     reasonable belief with respect to the tax treatment of an 
     item only if such belief: (1) is based on the facts and law 
     that exist at the time the tax return (that includes the 
     item) is filed; and (2) relates solely to the taxpayer's 
     chances of success on the merits and does not take into 
     account the possibility that (a) a return will not be 
     audited, (b) the treatment will not be raised on audit, or 
     (c) the treatment will be resolved through settlement if 
     raised.\218\
---------------------------------------------------------------------------
     \217\ See the previous discussion regarding the penalty for 
     failing to disclose a reportable transaction.
     \218\ Sec. 6664(d).
---------------------------------------------------------------------------
       A taxpayer may (but is not required to) rely on an opinion 
     of a tax advisor in establishing its reasonable belief with 
     respect to the tax treatment of the item. However, a taxpayer 
     may not rely on an opinion of a tax advisor for this purpose 
     if the opinion (1) is provided by a ``disqualified tax 
     advisor'' or (2) is a ``disqualified opinion.''
       Disqualified tax advisor
       A disqualified tax advisor is any advisor who: (1) is a 
     material advisor \219\ and who participates in the 
     organization, management, promotion or sale of the 
     transaction or is related (within the meaning of section 
     267(b) or 707(b)(1)) to any person who so participates; (2) 
     is compensated directly or indirectly \220\ by a material 
     advisor with respect to the transaction; (3) has a fee 
     arrangement with respect to the transaction that is 
     contingent on all or part of the intended tax benefits from 
     the transaction being sustained; or (4) as determined under 
     regulations prescribed by the Secretary, has a disqualifying 
     financial interest with respect to the transaction.
---------------------------------------------------------------------------
     \219\ The term ``material advisor'' means any person who 
     provides any material aid, assistance, or advice with respect 
     to organizing, managing, promoting, selling, implementing, or 
     carrying out any reportable transaction, and who derives 
     gross income in excess of $50,000 in the case of a reportable 
     transaction substantially all of the tax benefits from which 
     are provided to natural persons ($250,000 in any other case). 
     Sec. 6111(b)(1).
     \220\ This situation could arise, for example, when an 
     advisor has an arrangement or understanding (oral or written) 
     with an organizer, manager, or promoter of a reportable 
     transaction that such party will recommend or refer potential 
     participants to the advisor for an opinion regarding the tax 
     treatment of the transaction.
---------------------------------------------------------------------------
       A material advisor is considered as participating in the 
     ``organization'' of a transaction if the advisor performs 
     acts relating to the development of the transaction. This may 
     include, for example, preparing documents: (1) establishing a 
     structure used in connection with the transaction (such as a 
     partnership agreement); (2) describing the transaction (such 
     as an offering memorandum or other statement describing the 
     transaction); or (3) relating to the registration of the 
     transaction with any federal, state or local government 
     body.\221\ Participation in the ``management'' of a 
     transaction means involvement in the decision-making process 
     regarding any business activity with respect to the 
     transaction. Participation in the ``promotion or sale'' of a 
     transaction means involvement in the marketing or 
     solicitation of the transaction to others. Thus, an advisor 
     who provides information about the transaction to a potential 
     participant is involved in the promotion or sale of a 
     transaction, as is any advisor who recommends the transaction 
     to a potential participant.
---------------------------------------------------------------------------
     \221\ An advisor should not be treated as participating in 
     the organization of a transaction if the advisor's only 
     involvement with respect to the organization of the 
     transaction is the rendering of an opinion regarding the tax 
     consequences of such transaction. However, such an advisor 
     may be a ``disqualified tax advisor'' with respect to the 
     transaction if the advisor participates in the management, 
     promotion or sale of the transaction (or if the advisor is 
     compensated by a material advisor, has a fee arrangement that 
     is contingent on the tax benefits of the transaction, or as 
     determined by the Secretary, has a continuing financial 
     interest with respect to the transaction).
---------------------------------------------------------------------------
       Disqualified opinion
       An opinion may not be relied upon if the opinion: (1) is 
     based on unreasonable factual

[[Page H7542]]

     or legal assumptions (including assumptions as to future 
     events); (2) unreasonably relies upon representations, 
     statements, finding or agreements of the taxpayer or any 
     other person; (3) does not identify and consider all relevant 
     facts; or (4) fails to meet any other requirement prescribed 
     by the Secretary.
       Coordination with other penalties
       To the extent a penalty on an understatement is imposed 
     under section 6662A, that same amount of understatement is 
     not also subject to the accuracy-related penalty under 
     section 6662(a) or to the valuation misstatement penalties 
     under section 6662(e) or 6662(h). However, such amount of 
     understatement is included for purposes of determining 
     whether any understatement (as defined in sec. 6662(d)(2)) is 
     a substantial understatement as defined under section 
     6662(d)(1) and for purposes of identifying an underpayment 
     under the section 6663 fraud penalty.
       The penalty imposed under section 6662A does not apply to 
     any portion of an understatement to which a fraud penalty is 
     applied under section 6663.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment imposes a penalty for an 
     understatement attributable to any transaction that lacks 
     economic substance (referred to in the statute as a ``non-
     economic substance transaction understatement'').\222\ The 
     penalty rate is 40 percent (reduced to 20 percent if the 
     taxpayer adequately discloses the relevant facts in 
     accordance with regulations prescribed under section 6011). 
     No exceptions (including the reasonable cause or rescission 
     rules) to the penalty are available (i.e., the penalty is a 
     strict-liability penalty).
---------------------------------------------------------------------------
     \222\ Thus, unlike the present-law accuracy-related penalty 
     under section 6662A (which applies only to listed and 
     reportable avoidance transactions), the new penalty under 
     this provision applies to any transaction that lacks economic 
     substance.
---------------------------------------------------------------------------
       A ``non-economic substance transaction'' means any 
     transaction if (1) the transaction lacks economic substance 
     (as defined in the earlier proposal regarding the economic 
     substance doctrine),\223\ (2) the transaction was not 
     respected under the rules relating to transactions with tax-
     indifferent parties (as described in the immediately 
     preceding proposal regarding the economic substance 
     doctrine),\224\ or (3) any similar rule of law. For this 
     purpose, a similar rule of law would include, for example, an 
     understatement attributable to a transaction that is 
     determined to be a sham transaction.
---------------------------------------------------------------------------
     \223\ The Senate amendment generally provides that in any 
     case in which a court determines that the economic substance 
     doctrine is relevant, a transaction has economic substance 
     only if: (1) the transaction changes in a meaningful way 
     (apart from Federal income tax effects) the taxpayer's 
     economic position, and (2) the taxpayer has a substantial 
     non-tax purpose for entering into such transaction and the 
     transaction is a reasonable means of accomplishing such 
     purpose. Specific other rules also apply. See ``Senate 
     Amendment'' for the immediately preceding provision, 
     ``Clarification of the economic substance doctrine.''
     \224\ The Senate amendment provides that the form of a 
     transaction that involves a tax-indifferent party will not be 
     respected in certain circumstances.
---------------------------------------------------------------------------
       For purposes of the Senate amendment, the calculation of an 
     ``understatement'' is made in the same manner as in the 
     present law provision relating to accuracy-related penalties 
     for listed and reportable avoidance transactions (sec. 
     6662A). Thus, the amount of the understatement under the 
     proposal would be determined as the sum of (1) the product of 
     the highest corporate or individual tax rate (as appropriate) 
     and the increase in taxable income resulting from the 
     difference between the taxpayer's treatment of the item and 
     the proper treatment of the item (without regard to other 
     items on the tax return), \225\ and (2) the amount of any 
     decrease in the aggregate amount of credits which results 
     from a difference between the taxpayer's treatment of an item 
     and the proper tax treatment of such item. In essence, the 
     penalty will apply to the amount of any understatement 
     attributable solely to a non-economic substance transaction.
---------------------------------------------------------------------------
     \225\ For this purpose, any reduction in the excess of 
     deductions allowed for the taxable year over gross income for 
     such year, and any reduction in the amount of capital losses 
     that would (without regard to section 1211) be allowed for 
     such year, would be treated as an increase in taxable income.
---------------------------------------------------------------------------
       As in the case of the understatement penalty for reportable 
     and listed transactions under present law section 
     6662A(e)(3), except as provided in regulations, the 
     taxpayer's treatment of an item will not take into account 
     any amendment or supplement to a return if the amendment or 
     supplement is filed after the earlier of the date the 
     taxpayer is first contacted regarding an examination of such 
     return or such other date as specified by the Secretary.
       As in the case of the understatement penalty for 
     undisclosed reportable transactions under present law section 
     6707A, a public entity that is required to pay a penalty 
     under the provision (but in this case, regardless of whether 
     the transaction was disclosed) must disclose the imposition 
     of the penalty in reports to the SEC for such periods as the 
     Secretary shall specify. The disclosure to the SEC applies 
     without regard to whether the taxpayer determines the amount 
     of the penalty to be material to the reports in which the 
     penalty must appear, and any failure to disclose such penalty 
     in the reports is treated as a failure to disclose a listed 
     transaction. A taxpayer must disclose a penalty in reports to 
     the SEC once the taxpayer has exhausted its administrative 
     and judicial remedies with respect to the penalty (or if 
     earlier, when paid).
       Regardless of whether the transaction was disclosed, once a 
     penalty under the Senate amendment has been included in the 
     first letter of proposed deficiency which allows the taxpayer 
     an opportunity for administrative review in the IRS Office of 
     Appeals, the penalty cannot be compromised for purposes of a 
     settlement without approval of the Commissioner personally. 
     Furthermore, the IRS is required to keep records summarizing 
     the application of this penalty and providing a description 
     of each penalty compromised under the proposal and the 
     reasons for the compromise.
       Any understatement on which a penalty is imposed under the 
     provision will not be subject to the accuracy-related penalty 
     under section 6662 or under 6662A (accuracy-related penalties 
     for listed and reportable avoidance transactions). However, 
     an understatement under the Senate amendment is taken into 
     account for purposes of determining whether any 
     understatement (as defined in sec. 6662(d)(2)) is a 
     substantial understatement as defined under section 
     6662(d)(1). The penalty imposed under the Senate amendment 
     will not apply to any portion of an understatement to which a 
     fraud penalty is applied under section 6663.
       Effective date.--The Senate amendment applies to 
     transactions entered into after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     21. Denial of deduction for interest on underpayments 
         attributable to noneconomic substance transactions (sec. 
         5523 of the Senate amendment)


                              Present Law

       No deduction for interest is allowed for interest paid or 
     accrued on any underpayment of tax which is attributable to 
     the portion of any reportable transaction understatement with 
     respect to which the relevant facts were not adequately 
     disclosed.\226\ The Secretary of the Treasury is authorized 
     to define reportable transactions for this purpose.\227\
---------------------------------------------------------------------------
     \226\ Sec. 162(m). Under section 6664(d)(2)(A), in such a 
     case of nondisclosure, the taxpayer also is not entitled to 
     the ``reasonable cause and good faith'' exception to the 
     section 6662A penalty for a reportable transaction 
     understatement.
     \227\ See the description of present law under the 
     immediately preceding proposal, ``Penalty for understatements 
     attributable to transactions lacking economic substance, 
     etc.''
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment extends the disallowance of interest 
     deductions to interest paid or accrued on any underpayment of 
     tax which is attributable to any noneconomic substance 
     underpayment (whether or not disclosed).
       Effective date.--The Senate amendment applies to 
     transactions after the date of enactment in taxable years 
     ending after such date.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     22. Waiver of user fee for installment agreements using 
         automated withdrawals (sec. 5531 of the Senate amendment)


                              Present Law

       The Code authorizes the IRS to enter into written 
     agreements with any taxpayer under which the taxpayer is 
     allowed to pay taxes owed, as well as interest and penalties, 
     in installment payments if the IRS determines that doing so 
     will facilitate collection of the amounts owed.\228\
---------------------------------------------------------------------------
     \228\ Sec. 6159.
---------------------------------------------------------------------------
       An installment agreement does not reduce the amount of 
     taxes, interest, or penalties owed. Generally, during the 
     period installment payments are being made, other IRS 
     enforcement actions (such as levies or seizures) with respect 
     to the taxes included in that agreement are held in abeyance.
       The IRS charges a $43 user fee if a request for an 
     installment agreement is approved.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment waives the user fee for installment 
     agreements in which the parties agree to the use of automated 
     installment payments (such as automated debits from a bank 
     account).
       Effective date.--The Senate amendment applies to agreements 
     entered into on or after the date which is 180 days after the 
     date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     23. Termination of installment agreements (sec. 5532 of the 
         Senate amendment)


                              Present Law

       The Code authorizes the IRS to enter into written 
     agreements with any taxpayer under which the taxpayer is 
     allowed to pay taxes owed, as well as interest and penalties, 
     in installment payments, if the IRS determines that doing so 
     will facilitate collection of the amounts owed.\229\ An 
     installment agreement

[[Page H7543]]

     does not reduce the amount of taxes, interest, or penalties 
     owed. Generally, during the period installment payments are 
     being made, other IRS enforcement actions (such as levies or 
     seizures) with respect to the taxes included in that 
     agreement are held in abeyance.
---------------------------------------------------------------------------
     \229\ Sec. 6159.
---------------------------------------------------------------------------
       Under present law, the IRS is permitted to terminate an 
     installment agreement only if: (1) the taxpayer fails to pay 
     an installment at the time the payment is due; (2) the 
     taxpayer fails to pay any other tax liability at the time 
     when such liability is due; (3) the taxpayer fails to provide 
     a financial condition update as required by the IRS; (4) the 
     taxpayer provides inadequate or incomplete information when 
     applying for an installment agreement; (5) there has been a 
     significant change in the financial condition of the 
     taxpayer; or (6) the collection of the tax is in 
     jeopardy.\230\
---------------------------------------------------------------------------
     \230\ Sec. 6159(b)(2), (3), and (4).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment grants the IRS authority to terminate 
     installment agreement when a taxpayer fails to timely make a 
     required Federal tax deposit or fails to timely file a tax 
     return (including extensions). Under the Senate amendment, 
     the IRS may terminate an installment agreement even if the 
     taxpayer remained current with payments under the installment 
     agreement.
       Effective date.--The Senate amendment is effective for 
     failures occurring on or after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     24. Office of Chief Counsel review of offers-in-compromise 
         (sec. 5533 of the Senate amendment)


                              Present Law

       The IRS has the authority to settle a tax debt pursuant to 
     an offer-in-compromise. IRS regulations provide that such 
     offers can be accepted if the taxpayer is unable to pay the 
     full amount of the tax liability and it is doubtful that the 
     tax, interest, and penalties can be collected or there is 
     doubt as to the validity of the actual tax liability. Offers 
     to compromise tax liabilities of $50,000 or more can only be 
     accepted if the reasons for the acceptance are documented in 
     detail and supported by a written opinion from the IRS Chief 
     Counsel.\231\
---------------------------------------------------------------------------
     \231\ Sec. 7122.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment repeals the requirement that offers to 
     compromise liabilities of $50,000 or more must be supported 
     by a written opinion from the IRS Chief Counsel. Under the 
     Senate amendment, written opinions must only be provided if 
     the Secretary determines that an opinion is required with 
     respect to a compromise.
       Effective date.--The Senate amendment applies to offers-in-
     compromise submitted or pending on or after the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     25. Partial payments required with submissions of offers-in-
         compromise (sec. 5534 of the Senate amendment)


                              Present Law

       The IRS has the authority to compromise any civil or 
     criminal case arising under the internal revenue laws.\232\ 
     In general, taxpayers initiate this process by making an 
     offer-in-compromise, which is an offer by the taxpayer to 
     settle an outstanding tax liability for less than the total 
     amount due. The IRS currently imposes a user fee of $150 on 
     most offers, payable upon submission of the offer to the IRS. 
     Taxpayers may justify their offers on the basis of doubt as 
     to collectibility or liability or on the basis of effective 
     tax administration. In general, enforcement action is 
     suspended during the period that the IRS evaluates an offer. 
     In some instances, it may take the IRS 12 to 18 months to 
     evaluate an offer.\233\ Taxpayers are permitted (but not 
     required) to make a deposit with their offer; if the offer is 
     rejected, the deposit is generally returned to the taxpayer. 
     There are two general categories \234\ of offers-in-
     compromise, lump-sum offers and periodic payment offers. 
     Taxpayers making lump-sum offers propose to make one lump-sum 
     payment of a specified dollar amount in settlement of their 
     outstanding liability. Taxpayers making periodic payment 
     offers propose to make a series of payments over time (either 
     short-term or long-term) in settlement of their outstanding 
     liability.
---------------------------------------------------------------------------
     \232\ Sec. 7122.
     \233\ Olsen v. United States, 326 F. Supp. 2d 184 (D. Mass. 
     2004).
     \234\ The IRS categorizes payment plans with more 
     specificity, which is generally not significant for purposes 
     of the proposal. See Form 656, Offer in Compromise, page 6 of 
     instruction booklet (revised July 2004).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment requires a taxpayer to make partial 
     payments to the IRS while the taxpayer's offer is being 
     considered by the IRS. For lump-sum offers, taxpayers must 
     make a down payment of 20 percent of the amount of the offer 
     with any application. For purposes of this provision, a lump-
     sum offer includes single payments as well as payments made 
     in five or fewer installments. For periodic payment offers, 
     the provision requires the taxpayer to comply with the 
     taxpayer's own proposed payment schedule while the offer is 
     being considered. Offers submitted to the IRS that do not 
     comport with these payment requirements are returned to the 
     taxpayer as unprocessable and immediate enforcement action is 
     permitted. The provision eliminates the user fee requirement 
     for offers submitted with the appropriate partial payment.
       The Senate amendment also provides that an offer is deemed 
     accepted if the IRS does not make a decision with respect to 
     the offer within two years from the date the offer was 
     submitted. With respect to offers submitted more than five 
     years after the date of enactment, an offer is deemed 
     accepted if the IRS does not make a decision with respect to 
     the offer within 12 months of its submission.
       Effective date.--The Senate amendment applies to offers-in-
     compromise submitted or pending on and after the date which 
     is 60 days after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     26. Joint task force on offers-in-compromise (sec. 5535 of 
         the Senate amendment)


                              Present Law

       The IRS has the authority to compromise any civil or 
     criminal case arising under the internal revenue laws.\235\ 
     In general, taxpayers initiate this process by making an 
     offer-in-compromise, which is an offer by the taxpayer to 
     settle an outstanding tax liability for less than the total 
     amount due. The IRS currently imposes a user fee of $150 on 
     most offers, payable upon submission of the offer to the IRS. 
     Taxpayers may justify their offers on the basis of doubt as 
     to collectibility or liability or on the basis of effective 
     tax administration. In general, enforcement action is 
     suspended during the period that the IRS evaluates an offer. 
     Taxpayers are permitted (but not required) to make a deposit 
     with their offer; if the offer is rejected, the deposit is 
     generally returned to the taxpayer. There are two general 
     categories \236\ of offers-in-compromise, lump-sum offers and 
     periodic payment offers. Taxpayers making lump-sum offers 
     propose to make one lump-sum payment of a specified dollar 
     amount in settlement of their outstanding liability. 
     Taxpayers making periodic payment offers propose to make a 
     series of payments over time (either short-term or long-term) 
     in settlement of their outstanding liability.
---------------------------------------------------------------------------
     \235\ Sec. 7122.
     \236\ The IRS categorizes payment plans with more 
     specificity, which is generally not significant for purposes 
     of the proposal. See Form 656, Offer in Compromise, page 6 of 
     instruction booklet (revised July 2004).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment requires the Secretary to establish a 
     joint task force to review the IRS's determinations with 
     respect to offers-in-compromise, including offers which raise 
     equitable, public policy, or economic hardship as grounds for 
     compromising a tax liability. The task force shall consist of 
     one representative each from the Department of Treasury, the 
     IRS Oversight Board, the Office of Chief Counsel, the Office 
     of the Taxpayer Advocate, the Office of Appeals, and the IRS 
     office charged with operating the offer-in-compromise 
     program. The task force is required to report annually to 
     Congress regarding its findings and recommendations with 
     respect to the offer-in-compromise program. The provision 
     requires the filing of annual reports beginning in 2006.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

  O. Additional Revenue Provisions Relating to the Highway Trust Fund

     1. Suspension of transfers from Highway Trust Fund for 
         certain repayments and credits (sec. 5601 of the Senate 
         amendment)


                              Present Law

       Under sec. 9503(c)(2), certain transfers are made from the 
     Highway Trust Fund to reimburse the General Fund, for amounts 
     paid in respect of gasoline used on farms,\237\ amounts paid 
     in respect of gasoline used for certain nonhighway purposes 
     or by local transit systems,\238\ amounts relating to fuels 
     not used for taxable purposes,\239\ and income tax credits 
     allowed with respect to the nontaxable uses of fuels.\240\
---------------------------------------------------------------------------
     \237\ Sec. 6420.
     \238\ Sec. 6421.
     \239\ Sec. 6427.
     \240\ Sec. 34.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Section 9503(c)(2), relating to certain transfers from the 
     Highway Trust Fund to the General Fund, is suspended between 
     April 1, 2005 and October 1, 2005.
       Effective date.--The Senate amendment applies to amounts 
     paid for which no transfer has been made before April 1, 
     2005.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

[[Page H7544]]

     2. Dedicate gas guzzler tax to the Highway Trust Fund (sec. 
         5602 of the Senate amendment)


                              Present Law

       Under present law, the Code imposes a tax (``the gas 
     guzzler tax'') on automobiles that are manufactured primarily 
     for use on public streets, roads, and highways and that are 
     rated at 6,000 pounds unloaded gross vehicle weight or less. 
     The tax applies to limousines without regard to the weight 
     requirement. The tax is imposed on the sale by the 
     manufacturer of each automobile of a model type with a fuel 
     economy of 22.5 miles per gallon or less. The tax range 
     begins at $1,000 and increases to $7,700 for models with a 
     fuel economy less than 12.5 miles per gallon. Taxes imposed 
     under this provision are deposited into the General Fund.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment temporarily dedicates the gas guzzler 
     tax (as modified by the Senate amendment \241\) to the 
     Highway Trust Fund. The Highway Trust Fund will be credited 
     with gas guzzler taxes imposed on or after July 1, 2005 and 
     before October 1, 2005.
---------------------------------------------------------------------------
     \241\ The Senate amendment repeals the tax as it applies to 
     limousines rated at greater than 6,000 pounds unloaded gross 
     vehicle weight.
---------------------------------------------------------------------------
       Effective date.--The Senate amendment applies to taxes 
     imposed on or after July 1, 2005.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     3. Treatment of kerosene for use in aviation (sec. 5611 of 
         the Senate amendment and secs. 4041, 4081, 4082, 6427, 
         9502, and 9503 of the Code)


                              Present Law

       In general, aviation-grade kerosene is taxed at a rate of 
     21.8 cents per gallon upon removal of such fuel from a 
     refinery or terminal (or entry into the United States) and on 
     the sale of such fuel to any unregistered person unless there 
     was a prior taxable removal or entry of such fuel.\242\ 
     Aviation-grade kerosene may be removed at a reduced rate, 
     either 4.3 or zero cents per gallon, if the aviation fuel is 
     removed directly into the fuel tank of an aircraft for use in 
     commercial aviation \243\ or for a use that is exempt from 
     the tax imposed by section 4041(c) (other than by reason of a 
     prior imposition of tax),\244\ or is removed or entered as 
     part of an exempt bulk transfer.\245\ These taxes are 
     credited to the Airport and Airway Trust Fund.\246\ If taxed 
     aviation-grade kerosene is used for a nontaxable use, a claim 
     for credit or refund may be made.\247\ Such claims are paid 
     from the Airport and Airway Trust Fund to the general fund of 
     the Treasury.\248\ All other removals and entries of kerosene 
     used for surface transportation are taxed at the diesel tax 
     rate of 24.3 cents per gallon,\249\ and these taxes are 
     credited to the Highway Trust Fund.\250\ If aviation-grade 
     kerosene is taxed upon removal or entry but fraudulently 
     diverted for surface transportation, the taxes remain in the 
     Airport and Airway Trust Fund, and the Highway Trust Fund is 
     not credited for the taxes on such fuel.
---------------------------------------------------------------------------
     \242\ Sec. 4081(a)(2)(A)(iv). (An additional 0.1 cent is 
     imposed on aviation-grade kerosene and credited to the 
     Leaking Underground Storage Tank (``LUST'' Trust Fund.) Sec. 
     4081(a)(2)(B). The LUST Trust Fund tax is set to expire after 
     September 30, 2005. Sec. 4081(d)(3).
     \243\ Sec. 4081(a)(2)(C).
     \244\ Sec. 4082(e). Exempt uses include use in commercial 
     aviation as supplies for vessels or aircraft, which includes 
     use by certain foreign air carriers and for the international 
     flights of domestic carriers, secs. 4082(e), 6427(l)(2), and 
     4221(d)(3).
     \245\ Sec. 4081(a)(1)(B).
     \246\ Sec. 4081(a)(3).
     \247\ Sec. 6427(l)(1) and 6427(l)(4). Nontaxable uses 
     include: (1) use other than as fuel in an aircraft (such as 
     use in heating oil); (2) use on a farm for farming purposes; 
     (3) use in a military aircraft owned by the United States or 
     a foreign country; (4) use in a domestic air carrier engaged 
     in foreign trade or trade between the United States and any 
     of its possessions; (5) use in a foreign air carrier engaged 
     in foreign trade or trade between the United States and any 
     of its possessions (but only if the foreign carrier's country 
     of registration provides similar privileges to United States 
     carriers); (6) exclusive use of a State or local government; 
     (7) sales for export, or shipment to a United States 
     possession; (8) exclusive use by a nonprofit educational 
     organization; (9) use by an aircraft museum exclusively for 
     the procurement, care, or exhibition of aircraft of the type 
     used for combat or transport in World War II, and (10) use as 
     a fuel in a helicopter or a fixed-wing aircraft for purposes 
     of providing transportation with respect to which certain 
     requirements are met. Secs. 4041(f)(2), 4041(g), 4041(h), 
     4041(l), and 6427(l)(2)(B)(i).
     \248\ Sec. 9502(d)(2).
     \249\ Sec. 4081(a)(2)(iii).
     \250\ Sec. 9503(b)(1)(D).
---------------------------------------------------------------------------
       A special rule of present law addresses whether a removal 
     from a refueler truck, tanker, or tank wagon may be treated 
     as a removal from a terminal for purposes of determining 
     whether aviation-grade kerosene is removed directly into the 
     wing of an aircraft for use in commercial aviation, and so 
     eligible for the 4.3 cents per gallon rate.\251\ For the 
     special rule to apply, a qualifying truck, tanker, or tank 
     wagon must be loaded with aviation-grade kerosene from a 
     terminal: (1) that is located within a secured area of an 
     airport, and (2) from which no vehicle licensed for highway 
     use is loaded with aviation fuel, except in exigent 
     circumstances identified by the Secretary in regulations. In 
     order to qualify for the special rule, a refueler truck, 
     tanker, or tank wagon must: (1) be loaded with fuel for 
     delivery only into aircraft at the airport where the terminal 
     is located; (2) have storage tanks, hose, and coupling 
     equipment designed and used for the purposes of fueling 
     aircraft; (3) not be registered for highway use; and (4) be 
     operated by the terminal operator (who operates the terminal 
     rack from which the fuel is unloaded) or by a person that 
     makes a daily accounting to such terminal operator of each 
     delivery of fuel from such truck, tanker, or tank wagon.
---------------------------------------------------------------------------
     \251\ Sec. 4081(a)(3).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment imposes the kerosene tax rate of 24.3 
     cents per gallon upon the entry or removal of aviation-grade 
     kerosene and on the sale of such fuel to any unregistered 
     person unless there was a prior taxable removal or entry of 
     the fuel. The present law reduced rates for removals of 
     aviation-grade kerosene directly into the fuel tank of an 
     aircraft apply,\252\ except that in addition, under the 
     proposal, if kerosene is removed directly into the fuel tank 
     of an aircraft for use in aviation other than commercial 
     aviation, the rate of tax is 21.8 cents per gallon.
---------------------------------------------------------------------------
     \252\ For example, for kerosene removed directly into the 
     fuel tank of an aircraft for use in commercial aviation by a 
     person registered for such use, the rate of tax is 4.3 cents 
     per gallon. Kerosene removed directly into the fuel tank of 
     an aircraft for an exempt use is not taxed. For purposes of 
     these reduced rates, it is intended that the following 
     airports be included on the Secretary's list of airports that 
     include a secured area in which a terminal is located. The 
     airports are listed by airport name, and the terminal with 
     respect to the airport is identified by terminal control 
     number: Los Angeles International Airport (T-95-CA-4812) and 
     Federal Express Corporation Memphis Airport (T-62-TN-2220).
---------------------------------------------------------------------------
       The Senate amendment provides that amounts may be claimed 
     as credits or refunds for kerosene that is taxed at the 24.3 
     cents per gallon rate and used for aviation purposes. If 
     kerosene is used for noncommercial aviation, the amount is 
     2.5 cents; if kerosene is used for commercial aviation, the 
     amount is 20 cents; if kerosene is used for a use that is 
     exempt from tax (as determined under present law), the amount 
     is 24.3 cents. Present law rules with respect to claims 
     apply, except for claims with respect to kerosene used in 
     noncommercial aviation, which may be claimed by the ultimate 
     vendor. To be eligible to receive a payment, a vendor must be 
     registered and must show either that the price of the fuel 
     did not include the tax and the tax was not collected from 
     the purchaser, the amount of tax was repaid to the ultimate 
     purchaser, or the written consent of the purchaser to the 
     making of the claim was filed with the Secretary.
       Under the Senate amendment, all taxes collected at the 24.3 
     cents per gallon rate (under section 4081) initially are 
     credited to the Highway Trust Fund. The Senate amendment 
     requires the Secretary to transfer from time to time from the 
     Highway Trust Fund into the Airport and Airway Trust Fund 
     amounts equivalent to the taxes received under sections 4041 
     and 4081 with respect to fuels used in a nontaxable use to 
     the extent such amounts exceed the amounts paid with respect 
     to such use. Transfers are required to be made with respect 
     to taxes received on or after October 1, 2005, and before 
     October 1, 2011.
       Effective date.--The Senate amendment is effective for 
     fuels or liquids removed, entered, or sold after September 
     30, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment with 
     the following modifications.
       The conference agreement provides that the rate of tax on 
     kerosene is 21.8 cents per gallon if the kerosene is removed 
     from refueler trucks, tankers, and tank wagons that are 
     loaded with fuel from a terminal that is located in an 
     airport, without regard to whether the terminal is located in 
     a secured area of the airport, as long as all the other 
     requirements of the present law special rule related to such 
     trucks, tankers, and wagons are met. The conference agreement 
     clarifies that the rate of tax upon removal of kerosene is 
     zero if the removal is from a refueler truck, tanker, or tank 
     wagon that meets all of the requirements of present law, 
     including the security requirement, the kerosene is delivered 
     directly into the fuel tank of an aircraft, and the kerosene 
     is exempt from the tax imposed by section 4041(c) (other than 
     by prior imposition of tax).
       The Senate amendment is clarified to provide that claims 
     for payment for kerosene that is used for noncommercial 
     aviation may be claimed by the ultimate vendor only.
       The conference agreement clarifies the transfer mechanism 
     for payments from the Highway Trust Fund to the Airport and 
     Airway Trust Fund to provide that such transfers shall be 
     made monthly in amounts equivalent to 21.8 cents per gallon 
     for claims made with respect to kerosene used for 
     noncommercial aviation purposes, 4.3 cents per gallon for 
     claims made with respect to kerosene used for commercial 
     aviation purposes, and the amounts attributable to taxes 
     received with respect to amounts allowed as a credit under 
     section 34 for kerosene used for aviation purposes. The 
     conference agreement requires that transfers be made on the 
     basis of estimates by the Secretary, with proper adjustments 
     to be made subsequently to the extent prior estimates were in 
     excess of or less than the amounts required to be 
     transferred. The conference agreement clarifies that the 
     Airport and Airway Trust Fund does

[[Page H7545]]

     not reimburse the General Fund for claims with respect to 
     kerosene that is taxed at the 24.3 cents per gallon rate and 
     used for aviation purposes, or with respect to credits 
     allowed under section 34 to the extent the Highway Trust Fund 
     is credited initially with the amount of tax with respect to 
     which the credit is claimed.
     4. Repeal of ultimate vendor refund claims with respect to 
         farming (sec. 5612 of the Senate amendment and sec. 
         6427(l) of the Code)


                              Present Law

     In general--ultimate purchaser refunds for nontaxable uses
       In general, the Code provides that if diesel fuel or 
     kerosene on which tax has been imposed is used by any person 
     in a nontaxable use, the Secretary is to refund (without 
     interest) to the ultimate purchaser the amount of tax 
     imposed.\253\ The refund is made to the ultimate purchaser of 
     the taxed fuel by either income tax credit or refund 
     payment.\254\ Not more than one claim may be filed by any 
     person with respect to fuel used during its taxable year. 
     However, there are exceptions to this rule.
---------------------------------------------------------------------------
     \253\ Sec. 6427(l)(1).
     \254\ Generally, refund payments are only made to 
     governmental units and tax-exempt organizations. Sec. 
     6427(k). The quarterly payment claim rules for ultimate 
     purchasers are an exception to this rule.
---------------------------------------------------------------------------
       An ultimate purchaser may make a claim for a refund payment 
     for any quarter of a taxable year for which the purchaser can 
     claim at least $750.\255\ If the purchaser cannot claim at 
     least $750 at the end of quarter, the amount can be carried 
     over to the next quarter to determine if the purchaser can 
     claim at least $750. If the purchaser cannot claim at least 
     $750 at the end of the taxable year, the purchaser must claim 
     a credit on the person's income tax return.
---------------------------------------------------------------------------
     \255\ Sec. 6427(i)(2).
---------------------------------------------------------------------------
       As discussed below, these ultimate purchaser refund rules 
     do not apply to diesel fuel or kerosene used on a farm. The 
     Code precludes the ultimate purchaser from claiming a refund 
     for such use. Instead, the refund claims are made by 
     registered vendors as described below.
     Special vendor rule for use on a farm for farming purposes
       In the case of diesel fuel or kerosene used on a farm for 
     farming purposes refund payments are paid to the ultimate, 
     registered vendors (``registered ultimate vendor'') of such 
     fuels. Thus a registered ultimate vendor that sells undyed 
     diesel fuel or undyed kerosene to any of the following may 
     make a claim for refund: (1) the owner, tenant, operator of a 
     farm for use by that person on a farm for farming purposes; 
     and (2) a person other than the owner, tenant, or operator of 
     a farm for use by that person on a farm in connection with 
     cultivating, raising or harvesting. The registered ultimate 
     vendor is the only person who may make the claim with respect 
     to diesel fuel or kerosene used on a farm for farming 
     purposes. The purchaser of the fuel cannot make the claim for 
     refund.
       Registered ultimate vendors may make weekly claims if the 
     claim is at least $200 ($100 or more in the case of 
     kerosene).\256\ If not paid within 45 days (20 days for an 
     electronic claim), the Secretary is to pay interest on the 
     claim.
---------------------------------------------------------------------------
     \256\ Sec. 6427(i)(4)(A).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment repeals ultimate vendor refund claims 
     in the case of diesel fuel or kerosene used on a farm for 
     farming purposes. Thus, refunds for taxed diesel fuel or 
     kerosene used on a farm for farming purposes would be paid to 
     the ultimate purchaser under the rules applicable to 
     nontaxable uses of diesel fuel or kerosene.
       Effective date.--The Senate amendment is effective for 
     sales after September 30, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     5. Refunds of excise taxes on exempt sales of taxable fuel by 
         credit card (sec. 5613 of the Senate amendment and secs. 
         6206, 6416, 6427, and 6675 of the Code)


                              Present Law

       Under the rules in effect prior to 2005, in the case of 
     gasoline on which tax had been paid and sold to a State or 
     local government, to a nonprofit educational organization, 
     for supplies for vessels or aircraft, for export, or for the 
     production of special fuels, the wholesale distributor that 
     sold such gasoline was treated as the only person who paid 
     the tax and thereby was the proper claimant for a credit or 
     refund of the tax paid. A ``wholesale distributor'' included 
     any person, other than an importer or producer, who sold 
     gasoline to producers, retailers, or to users who purchased 
     in bulk quantities and accepted delivery into bulk storage 
     tanks. A wholesale distributor also included any person who 
     made retail sales of gasoline at 10 or more retail motor fuel 
     outlets.
       Under a special administrative exception to these rules, a 
     sale of gasoline charged on an oil company credit card issued 
     to an exempt person described above is not considered a 
     direct sale by the person actually selling the gasoline to 
     the ultimate purchaser if the seller receives a reimbursement 
     of the tax from the oil company (or indirectly through an 
     intermediate vendor). Thus, the person that actually paid the 
     tax, in most cases the oil company, is treated as the only 
     person eligible to make the refund claim.\257\
---------------------------------------------------------------------------
     \257\ Notice 89-29, 1989-1 C.B. 669.
---------------------------------------------------------------------------
       The American Jobs Creation Act of 2004 (``AJCA'') \258\ 
     modified the pre-existing statutory rules with respect to 
     certain sales. Under AJCA, if a registered ultimate vendor 
     purchases any gasoline on which tax has been paid and sells 
     such gasoline to a State or local government or to a 
     nonprofit educational organization, for its exclusive use, 
     such ultimate vendor is treated as the only person who paid 
     the tax and thereby is the proper claimant for a credit or 
     refund of the tax paid.\259\ However, AJCA did not change the 
     special administrative oil company credit card rule described 
     above.\260\
---------------------------------------------------------------------------
     \258\ Pub. L. No. 108-357.
     \259\ AJCA, sec. 865(a), effective January 1, 2005. See Code 
     sec. 6416(a)(4)(A).
     \260\ In Notice 2005-4, 2005-2 I.R.B. 289, the Treasury 
     Department confirmed that it would continue to apply the oil 
     company credit card rule until March 1, 2005. On February 28, 
     2005, the Treasury Department issued Notice 2005-24, 2005-12 
     I.R.B. 1, modifying Notice 2005-4. Notice 2005-24 stated that 
     the oil company credit card rule will remain in effect until 
     it is modified by a statutory change or by future guidance.
---------------------------------------------------------------------------
       In addition, under AJCA, refund claims made by such an 
     ultimate vendor may be filed for any period of at least one 
     week for which $200 or more is payable. Any such claim must 
     be filed on or before the last day of the first quarter 
     following the earliest quarter included in the claim. The 
     Secretary must pay interest on refunds unpaid after 45 days. 
     If the refund claim was filed by electronic means, and 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 for highway exempt use 
     as a State or local government or a nonprofit educational 
     organization, refunds unpaid after 20 days must be paid with 
     interest.\261\
---------------------------------------------------------------------------
     \261\ Sec. 6146(a)(4)(B).
---------------------------------------------------------------------------
       In the case of diesel fuel or kerosene used in a nontaxable 
     use, the ultimate purchaser is generally the only person 
     entitled to claim a refund of excise tax.\262\ However, in 
     the case of diesel fuel or kerosene used on a farm for 
     farming purposes or by a State or local government, aviation-
     grade kerosene, and certain nonaviation-grade kerosene, an 
     ultimate vendor may claim the refund if the ultimate vendor 
     is registered and bears the tax (or receives the written 
     consent of the ultimate purchaser to claim the refund).\263\
---------------------------------------------------------------------------
     \262\ Sec. 6427(l)(1).
     \263\ See sec. 6427(l)(4)(B), (l)(5)(B), and (l)(5)(C), and 
     sec. 6416(a)(1)(A), (B), and (D).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment replaces the oil company credit card 
     rule with a new set of rules applicable to certain credit 
     card sales. The new rules apply to all taxable fuels. Under 
     the Senate amendment, if a purchase of taxable fuel is made 
     by means of a credit card issued to an ultimate purchaser 
     that is either a State or local government or, in the case of 
     gasoline, a nonprofit educational organization, for its 
     exclusive use, a credit card issuer who is registered and who 
     extends such credit to the ultimate purchaser with respect to 
     such purchase shall be the only person entitled to apply for 
     a credit or refund if the following two conditions are met: 
     (1) such registered person has not collected the amount of 
     the tax from the purchaser, or has obtained the written 
     consent of the ultimate purchaser to the allowance of the 
     credit or refund; and (2) such registered person has 
     either repaid or agreed to repay the amount of the tax to 
     the ultimate vendor, has obtained the written consent of 
     the ultimate vendor to the allowance of the credit or 
     refund, or has otherwise made arrangements that directly 
     or indirectly provide the ultimate vendor with 
     reimbursement of such tax. It is anticipated that such 
     indirect arrangements may consist of the contractual 
     undertaking of the relevant oil company to the credit card 
     issuer that it will pay the amount of the tax to the 
     ultimate vendor, and the corresponding contractual 
     undertaking of the oil company to the ultimate vendor.
       A credit card issuer entitled to claim a refund under the 
     provision is responsible for collecting and supplying all the 
     appropriate documentation currently required from ultimate 
     vendors. The present-law refund amount and timing rules 
     applicable to ultimate vendors, including the special rules 
     for electronic claims, apply to refunds to credit card 
     issuers under the provision.\264\
---------------------------------------------------------------------------
     \264\ See sec. 6416(a)(4)(B). Present law would continue to 
     apply to the timing of ultimate purchaser claims. Under 
     present law, claims by an ultimate purchaser are generally 
     made on an annual basis. However, claims aggregating over 
     $750 may be made quarterly. See secs. 6421(d) and 6427(i)(2).
---------------------------------------------------------------------------
       The Senate amendment also conforms present-law penalty 
     provisions to the new rules.
       The Senate amendment does not change the present-law rules 
     applicable to non-credit card purchases.
       Effective date.--The Senate amendment is effective for 
     sales after December 31, 2005.


                          Conference Agreement

       The conference agreement follows the Senate amendment with 
     the following modifications.
       Under the conference agreement, if a credit card issuer is 
     not registered, or if either condition (1) or (2) described 
     above is not

[[Page H7546]]

     met (or if the ultimate purchaser is not exempt), then the 
     credit card issuer is required to collect an amount equal to 
     the tax from the ultimate purchaser and only an (exempt) 
     ultimate purchaser may claim a credit or payment from the 
     IRS.\265\ The conferees intend that tax-paid fuel shall not 
     be sold tax free to an exempt entity by means of a credit 
     card unless the credit card issuer is registered. An 
     unregistered credit card issuer that does not collect an 
     amount equal to the tax from the exempt entity is liable for 
     present-law penalties for failure to register.\266\ The 
     present-law regulatory authority of the Secretary to 
     prescribe the form, manner, terms, conditions of 
     registration, and conditions of use of registration extends 
     to registration under this provision.\267\ Such authority may 
     include rules that preclude persons which are registered 
     credit card issuers from issuing nonregistered credit 
     cards.\268\ The conferees also intend that the IRS will 
     review the registration of a registered credit card issuer 
     that has engaged in multiple or flagrant violations of the 
     requirements of the provision.
---------------------------------------------------------------------------
     \265\ Sec. 6421(c).
     \266\ Secs. 6719, 7232, and 7272.
     \267\ Sec. 4101(a)(1).
     \268\ Because registration occurs at the ``person'' (legal 
     entity) level, it is anticipated that a credit card issuer 
     will use a separate (registered) entity for the issuance of 
     credit cards entitled to the benefits of this provision.
---------------------------------------------------------------------------
     6. Recertification of exempt status (sec. 5614 of the Senate 
         amendment)


                              Present Law

       If gasoline is sold to any person for an exempt use, an 
     ultimate purchaser that has borne the tax is entitled to 
     claim a refund.\269\ However, a registered ultimate vendor is 
     the appropriate person to claim a refund of Federal excise 
     taxes on gasoline sold to a State or local government or to a 
     nonprofit educational organization.\270\
---------------------------------------------------------------------------
     \269\ Sec. 6421(c).
     \270\ Sec. 6416(a)(4)(A).
---------------------------------------------------------------------------
       In general, in order to claim a refund of Federal excise 
     taxes on gasoline (and on other articles subject to 
     manufacturers excise taxes under Chapter 32 of the Code) sold 
     to a State or local government or to a nonprofit educational 
     organization, for its exclusive use, a claimant must submit a 
     statement indicating that it possesses evidence of the exempt 
     use giving rise to the overpayment of tax.\271\ Such evidence 
     consists of a certificate executed and signed by the ultimate 
     purchaser, and must identify the article, show the name and 
     address of the ultimate purchaser, and state the exempt use 
     made or to be made of the article. In the case where the 
     certificate sets forth the use to be made of the article, 
     rather than its actual use, it must show that the ultimate 
     purchaser has agreed to notify the claimant if the article is 
     not in fact used as specified in the certificate.\272\
---------------------------------------------------------------------------
     \271\ Treas.Reg. sec. 48.6416(b)(2)-3(a)(5).
     \272\ Treas. Reg. sec. 48.6416(b)(2)-3(b)(1)(i) and (ii). The 
     certificate must also contain a statement that the ultimate 
     purchaser understands that it and any other party may, for 
     fraudulent use of the certificate, be subject under section 
     7201 to a fine of not more than $10,000, or imprisonment for 
     not more than 5 years, or both, together with the costs of 
     prosecution.
---------------------------------------------------------------------------
       However, if the article to which the claim relates has 
     passed through a chain of sales from the claimant to the 
     ultimate purchaser, a certificate executed and signed by the 
     ultimate vendor is sufficient to document the exempt use. The 
     ultimate vendor certificate must contain the exempt sales 
     information, and a statement that it possesses the ultimate 
     purchaser certificates and will forward them to the claimant 
     within three years from the date of the statement. An 
     ultimate vendor statement may be made covering no more than 
     12 consecutive calendar quarters.\273\
---------------------------------------------------------------------------
     \273\ Treas. Reg. sec. 48.6416(b)(2)-3(b)(1)(i) and (iii).
---------------------------------------------------------------------------
       In general, an ultimate purchaser is the proper party to 
     claim a refund of Federal excise tax on diesel fuel or 
     kerosene used by any person in a nontaxable use.\274\ 
     However, in the case of diesel or kerosene used by a State or 
     local government, the ultimate vendor is the proper person if 
     such vendor is registered and has borne the tax (or receives 
     the written consent of the ultimate purchaser to claim the 
     refund).\275\ A registered ultimate vendor claiming a refund 
     under this provision must provide a statement that it has in 
     its possession an unexpired exemption certificate of the 
     purchaser and that the claimant has no reason to believe any 
     information in the certificate is false.\276\
---------------------------------------------------------------------------
     \274\ Sec. 6427(l)(1). In the case of diesel fuel or 
     kerosene, a nontaxable use is any use which is exempt from 
     the tax imposed by section 4041(a)(1) other than by reason of 
     a prior imposition of tax. Sec. 6427(l)(2).
     \275\ Sec. 6427(1)(5)(C).
     \276\ Treas. Reg. Sec. 48.6427-9(e)(1)(vi).
---------------------------------------------------------------------------
       A State or local government includes any political 
     subdivision of a State, or the District of Columbia.\277\ A 
     nonprofit educational organization means an educational 
     organization which normally maintains a regular faculty and 
     curriculum and normally has a regularly enrolled body of 
     pupils or students in attendance at the place where its 
     educational activities are regularly carried on, and which 
     either is exempt from income tax under section 501(a) or is a 
     school operated as an activity of an organization described 
     in section 501(c)(3) which is exempt from income tax under 
     section 501(a).\278\
---------------------------------------------------------------------------
     \277\ Sec. 4221(d)(4); Treas. Reg. sec. 48.6416(b)(2)-2(d).
     \278\ Sec. 4221(d)(5); Treas. Reg. sec. 48.6416(b)(2)-2(e).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, additional documentation 
     requirements are imposed with respect to purchases of taxable 
     fuel and certain other articles on a nontaxable basis by 
     State or local governments and nonprofit educational 
     organizations and with respect to refunds or credits by any 
     person with respect to such purchases. The Senate amendment 
     covers Federal excise taxes on sales of liquids for use as a 
     fuel (including taxable fuels), compressed natural gas 
     (except if sold for use on school buses or intracity buses), 
     heavy trucks and trailers, recreational equipment (bows and 
     arrows, sport fishing equipment and firearms), and tires 
     (except for tires sold for use on qualified buses). The 
     Senate amendment does not cover Federal excise taxes on sales 
     of coal and vaccines.
       In addition to present-law documentation requirements, in 
     order for a State or local governmental entity to claim 
     exemption from tax on sales of such covered articles, or for 
     any person to claim a credit or refund based upon the State 
     or local governmental status of the purchaser of such 
     articles, the State must certify that the article is sold to 
     a State or local government for the exclusive use of a State 
     or local government. In the case of articles sold to a 
     qualified volunteer fire department, as defined in section 
     150(e)(2),\279\ the State must so certify, and the article 
     must be sold for the exclusive use of the qualified volunteer 
     fire department.
---------------------------------------------------------------------------
     \279\ In general, as defined in section 150(e)(2), a 
     qualified volunteer fire department is any organization 
     organized and operated to provide firefighting or emergency 
     medical services for persons in an area that is not provided 
     with any other firefighting services, and which is required 
     by written agreement with the political subdivision to 
     furnish firefighting services in such area.
---------------------------------------------------------------------------
       In order for a nonprofit educational organization to claim 
     exemption from tax on such articles, or for any person to 
     claim a credit or refund of tax on such articles based upon 
     the nonprofit educational status of an organization, the 
     State in which such organization is providing educational 
     services must certify that such organization is in good 
     standing.
       For purposes of this provision, an Indian tribal government 
     is treated as a State.\280\ Consequently, it is intended that 
     the applicable Indian tribal government will provide the 
     certifications under this provision.
---------------------------------------------------------------------------
     \280\ See sec. 7871(a)(2). Section 7871(b) provides that in 
     order for an excise tax exemption (with respect to chapter 31 
     or 32) to apply to an Indian tribal government, the 
     transaction must involve the exercise of an essential 
     governmental function of the Indian tribal government.
---------------------------------------------------------------------------
       It is intended that the certifications required under this 
     provision will be provided by exempt purchasers to the refund 
     claimants (in addition to documentation required under 
     present law), and that the IRS may require that such 
     certifications be submitted as part of the claims. The 
     Secretary may prescribe forms for such certifications.
       Effective date.--The Senate amendment is effective for all 
     sales after December 31, 2005.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     7. Reregistration in event of change in ownership (sec. 5615 
         of the Senate amendment and secs. 4101, 6719, 7232, and 
         7272 of the Code)


                              Present Law

       Blenders, enterers, pipeline operators, position holders, 
     refiners, terminal operators, and vessel operators are 
     required to register with the Secretary with respect to fuels 
     taxes imposed by sections 4041(a)(1) and 4081.\281\ An 
     assessable penalty for failure to register is $10,000 for 
     each initial failure, plus $1,000 per day that the failure 
     continues.\282\ A non-assessable penalty for failure to 
     register is $10,000.\283\ A criminal penalty of $10,000, or 
     imprisonment of not more than five years, or both, together 
     with the costs of prosecution also applies to a failure to 
     register and to certain false statements made in connection 
     with a registration application.\284\ Treasury regulations 
     require that a registrant notify the Secretary of any change 
     (such as a change in ownership) in the information a 
     registrant submitted in connection with its application for 
     registration within 10 days of the change.\285\ The Secretary 
     has the discretion to revoke the registration of a 
     noncompliant registrant.
---------------------------------------------------------------------------
     \281\ Sec. 4101; Treas. Reg. secs. 48.4101-1(a) and 48.4101-
     1(c)(1).
     \282\ Sec. 6719.
     \283\ Sec. 7272(a).
     \284\ Sec. 7232.
     \285\ Treas. Reg. sec. 48.4101-1(h)(1)(v).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment requires that upon a change in 
     ownership of a registrant, the registrant must reregister 
     with the Secretary, as provided by the Secretary. A change in 
     ownership means that after a transaction (or series of 
     related transactions), more than 50 percent of the ownership 
     interests in, or assets of, a registrant are held by persons 
     other than persons (or persons related thereto) who held more 
     than 50 percent of such interests or assets before the 
     transaction (or series of related transactions). The 
     provision does not apply to companies, the stock of which is 
     regularly traded on an established securities market. There 
     is an assessable penalty for failure to reregister of $10,000 
     for each initial failure, plus $1,000 per day that the 
     failure continues,

[[Page H7547]]

     and a criminal penalty for failure to reregister of $10,000, 
     or imprisonment of not more than five years, or both, 
     together with the costs of prosecution. The Senate amendment 
     applies to changes in ownership occurring prior to, on, or 
     after the date of enactment.
       Effective date.--The Senate amendment is effective for 
     actions or failures to act after the date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment and 
     in addition makes the penalties for failure to reregister 
     identical to the present-law penalties for failure to 
     register by also providing for a non-assessable penalty for 
     failure to reregister of $10,000.
     8. Reconciliation of on-loaded cargo to entered cargo (sec. 
         5616 of the Senate amendment and sec. 343 of the Trade 
         Act of 2002)


                              Present Law

       The Trade Act of 2002 directed the Secretary to promulgate 
     regulations pertaining to the electronic transmission to the 
     Bureau of Customs and Border Patrol (``Customs'') of 
     information pertaining to cargo destined for importation into 
     the United States or exportation from the United States, 
     prior to such importation or exportation.\286\ The Department 
     of the Treasury issued final regulations on October 31, 2002. 
     The regulations require the advance and accurate presentation 
     of certain manifest information prior to lading at the 
     foreign port and encourage the presentation of this 
     information electronically. Customs must receive from the 
     carrier the vessel's Cargo Declaration (Customs Form 1302) or 
     the electronic equivalent within 24 hours before such cargo 
     is laden aboard the vessel at the foreign port.\287\
---------------------------------------------------------------------------
     \286\ Sec. 343(a) of Pub. L. No. 107-210 (2002).
     \287\ 19 CFR sec. 4.7(b)(2).
---------------------------------------------------------------------------
       Certain carriers of bulk cargo, however, are exempt from 
     these filing requirements. Such bulk cargo includes that 
     composed of free flowing articles such as oil, grain, coal, 
     ore and the like, which can be pumped or run through a chute 
     or handled by dumping.\288\ Thus, taxable fuels are not 
     required to file the Cargo Declaration within 24 hours before 
     such cargo is laden aboard the vessel at the foreign port. 
     Instead the Cargo Declaration must be filed within 24 hours 
     prior arrival in the United States.
---------------------------------------------------------------------------
     \288\ 19 CFR sec. 4.7(b)(4)(i)(A).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment provides that not later than one year 
     after the date of enactment of this paragraph, the Secretary 
     of Homeland Security, together with the Secretary of the 
     Treasury, is to establish an electronic data interchange 
     system through which Customs shall transmit to the Internal 
     Revenue Service information pertaining to cargoes of taxable 
     fuels (as defined in section 4083) that Customs has obtained 
     electronically under its regulations adopted to carry out the 
     Trade Act of 2002 requirement. For this purpose, not later 
     than one year after the date of enactment, all filers of 
     required cargo information for such taxable fuels, as 
     defined, must provide such information to Customs through its 
     approved electronic data interchange system.
       Effective date.--The Senate amendment is effective upon 
     date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment.
     9. Registration of operators of deep-draft vessels (sec. 5617 
         of Senate amendment and secs. 4081 and 4101 of the Code)


                              Present Law

       Blenders, enterers, pipeline operators, position holders, 
     refiners, terminal operators, and vessel operators are 
     required to register with the Secretary with respect to fuels 
     taxes imposed by sections 4041(a)(1) and 4081.\289\ Treasury 
     regulations define a vessel operator as any person that 
     operates a vessel within the bulk transfer/terminal system, 
     excluding deep-draft ocean-going vessels.\290\ Accordingly, 
     operators of deep-draft ocean-going vessels are not required 
     to register. A deep-draft ocean-going vessel is a vessel that 
     is designed primarily for use on the high seas that has a 
     draft of more than 12 feet.\291\
---------------------------------------------------------------------------
     \289\ Sec. 4101; Treas. Reg. sec. 48.4101-1(a) and 48.4101-
     1(c)(1).
     \290\ Treas. Reg. sec. 48.4101-1(b)(8).
     \291\ Sec. 4042(c)(1).
---------------------------------------------------------------------------
       An assessable penalty for failure to register is $10,000 
     for each initial failure, plus $1,000 per day that the 
     failure continues.\292\ A non-assessable penalty for failure 
     to register is $10,000.\293\ A criminal penalty of $10,000, 
     or imprisonment of not more than five years, or both, 
     together with the costs of prosecution also applies to a 
     failure to register and to certain false statements made in 
     connection with a registration application.\294\
---------------------------------------------------------------------------
     \292\ Sec. 6719.
     \293\ Sec. 7272(a).
     \294\ Sec. 7232.
---------------------------------------------------------------------------
       In general, gasoline, diesel fuel, and kerosene (``taxable 
     fuel'') are taxed upon removal from a refinery or a 
     terminal.\295\ Tax also is imposed on the entry into the 
     United States of any taxable fuel for consumption, use, or 
     warehousing. The tax does not apply to any removal or entry 
     of a taxable fuel transferred in bulk (a ``bulk transfer'') 
     by pipeline or vessel to a terminal or refinery if the person 
     removing or entering the taxable fuel, the operator of such 
     pipeline or vessel, and the operator of such terminal or 
     refinery are registered with the Secretary as required by 
     section 4101.\296\ Transfer to an unregistered party subjects 
     the transfer to tax.
---------------------------------------------------------------------------
     \295\ Sec. 4081(a)(1)(A).
     \296\ Sec. 4081(a)(1)(B). The sale of a taxable fuel to an 
     unregistered person prior to a taxable removal or entry of 
     the fuel is subject to tax. Sec. 4081(a)(1)(A).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment provides that the Secretary of the 
     Treasury shall require the registration of every operator of 
     a deep-draft ocean going vessel. Under the provision, if a 
     deep-draft ocean-going vessel is used as part of a bulk 
     transfer of taxable fuel, the transfer is subject to tax 
     unless the operator of such vessel is registered.
       Effective date.--The Senate amendment is effective on the 
     date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment 
     except that an operator of a deep-draft ocean-going vessel is 
     not required to register under the provision if such operator 
     uses such vessel exclusively for purposes of the entry of the 
     taxable fuel. For purposes of the bulk transfer exemption, a 
     deep-draft ocean-going vessel operator is not required to be 
     registered for the exemption to be available with respect to 
     the entry of taxable fuel by such vessel.
     10. Gasoline blend stocks and kerosene (sec. 5618 of the 
         Senate amendment and sec. 4083 of the Code)


                              Present Law

     In general
       A ``taxable fuel'' is gasoline, diesel fuel (including any 
     liquid, other than gasoline, which is suitable for use as a 
     fuel in a diesel-powered highway vehicle or train), and 
     kerosene.\297\ An excise tax is imposed upon (1) the removal 
     of any taxable fuel from a refinery or terminal, (2) the 
     entry of any taxable fuel into the United States, or (3) the 
     sale of any taxable fuel to any person who is not registered 
     with the IRS to receive untaxed fuel, unless there was a 
     prior taxable removal or entry.\298\ The tax does not apply 
     to any removal or entry of taxable fuel transferred in bulk 
     to a terminal or refinery if the person removing or entering 
     the taxable fuel, the operator of such pipeline or vessel, 
     and the operator of such terminal or refinery are registered 
     with the Secretary.\299\
---------------------------------------------------------------------------
     \297\ Sec. 4083(a).
     \298\ Sec. 4081(a)(1).
     \299\ Sec. 4081(a)(1)(B).
---------------------------------------------------------------------------
     Gasoline blend stocks
       Definition
       Under the regulations, ``gasoline'' includes all products 
     commonly or commercially known or sold as gasoline and are 
     suitable for use as a motor fuel, and that have an octane 
     rating of 75 or more. Gasoline also includes, to the extent 
     provided in regulations, gasoline blend stocks and products 
     commonly used as additives in gasoline. By regulation, the 
     Treasury has identified certain products as gasoline blend 
     stocks,\300\ however, the term ``gasoline blend stocks'' does 
     not include any product that cannot be blended into gasoline 
     without further processing or fractionation (``off-spec 
     gasoline'').
---------------------------------------------------------------------------
     \300\ Treas. Reg. sec. 48.4081-1(c)(3)(ii). The term 
     ``gasoline blend stocks'' means alkylate; butane; 
     catalytically cracked gasoline; coker gasoline; ethyl 
     tertiary butyl ether (ETBE); hexane; hydrocrackate; 
     isomerate; methyl tertiary butyl ether (MTBE); mixed xylene 
     (not including any separated isomer of xylene); natural 
     gasoline; pentane; pentane mixture; polymer gasoline; 
     raffinate; reformate; straight-run gasoline; straight-run 
     naphtha; tertiary amyl methyl ether (TAME); tertiary butyl 
     alcohol (gasoline grade) (TBA); thermally cracked gasoline; 
     and toluene. Treas. Reg. sec. 48.4081-1(c)(3)(i). Effective 
     January 1, 2005, transmix containing gasoline was removed 
     from the definition of gasoline blend stocks. Internal 
     Revenue Service, Notice 2005-4 (December 15, 2004).
---------------------------------------------------------------------------
       Gasoline blend stock exemptions
       If certain conditions are met, the removal, entry, or sale 
     of gasoline blend stocks is not taxable. Generally, the 
     exemption from tax applies if a gasoline blend stock (1) is 
     not used to produce finished gasoline (2) is received at an 
     approved terminal or refinery (3) or in bulk transfer to an 
     industrial user.\301\
---------------------------------------------------------------------------
     \301\ Treas. Reg. sec. 48.4081-4.
---------------------------------------------------------------------------
       Gasoline blend stocks not used to produce finished 
     gasoline.--Pursuant to Treasury regulation, no tax is imposed 
     on nonbulk removals from a terminal or refinery, or nonbulk 
     entries into the United States of any gasoline blend stocks 
     if (1) the person liable for the tax is a taxable fuel 
     registrant, and (2) such person does not use the gasoline 
     blend stocks to produce finished gasoline. In connection with 
     a sale, no tax is imposed on the nonbulk removal or entry if 
     (1) the person liable for the tax is a gasoline registrant 
     and (2) at the time of sale such party has an unexpired 
     certificate from the buyer, and has no reason to believe any 
     information in the certificate is false.\302\
---------------------------------------------------------------------------
     \302\ Treas. Reg. secs. 48.4081-4(b)(1) and 48.4081-
     4(b)(1)(2).
---------------------------------------------------------------------------
       Any sale (or resale) of a gasoline blend stock that was not 
     subject to tax on nonbulk removal or entry is taxable unless 
     the seller has an unexpired certificate from the buyer and 
     has no reason to believe that any information in the 
     certificate is false.
       The certificate to be provided by a buyer of gasoline blend 
     stocks contains a statement that the gasoline blend stocks 
     covered by the

[[Page H7548]]

     certificate will not be used to produce finished gasoline, 
     identifies the type (or types of blend stocks) covered by the 
     certificate and provides that the buyer will not claim a 
     credit or refund for any gasoline covered by the certificate. 
     The certificate is signed under penalties of perjury by a 
     person with authority to bind the buyer. The certificate 
     expires on the earliest of one year from the effective date 
     of the certificate, the date a new certificate is provided to 
     the seller or the date the seller is notified by the IRS or 
     the buyer that the buyer's right to provide a certificate has 
     been withdrawn.
       Gasoline blend stocks received at an approved terminal or 
     refinery.--Treasury regulations provide that tax is not 
     imposed on the removal or entry of gasoline blend stocks that 
     are received at a terminal or refinery if the person liable 
     for tax is a taxable fuel registrant, has an unexpired 
     notification certificate from the operator of the terminal or 
     refinery where the gasoline blend stocks are received; and 
     has no reason to believe that any information in the 
     certificate is false.\303\ A notification certificate is used 
     to notify another person of the taxable fuel registrant's 
     registration status.
---------------------------------------------------------------------------
     \303\ Treas. Reg. sec. 48.4081-4(b)(1).
---------------------------------------------------------------------------
       Bulk transfer to an industrial user.--Tax is not imposed if 
     upon removal of the gasoline blend stocks from a pipeline or 
     vessel, the gasoline blend stocks are received by a taxable 
     fuel registrant that is an industrial user.\304\ An 
     industrial user means any person that receives gasoline blend 
     stocks by bulk transfer for its own use in the manufacture of 
     any product other than finished gasoline.
---------------------------------------------------------------------------
     \304\ Treas. Reg. sec. 48.4081-4(d).
---------------------------------------------------------------------------
       Refunds or credits for tax imposed on gasoline blend stocks 
           not used for producing gasoline
       If any gasoline blend stock or additive is not used by a 
     person to produce gasoline and that person establishes that 
     the ultimate use of the gasoline blend stock or additive is 
     not used to produce gasoline, then the Secretary is to pay 
     (without interest) to such person, an amount equal to the 
     aggregate amount of tax imposed on such person with respect 
     to such gasoline or blend stock.\305\
---------------------------------------------------------------------------
     \305\ Sec. 6427(h)(1).
---------------------------------------------------------------------------
       If gasoline is used in an off-highway business use, the 
     ultimate purchaser of the gasoline is entitled to a credit or 
     refund for the excise taxes imposed on the fuel. ``Off-
     highway business use'' means any use by a person in a trade 
     or business of such person otherwise than as a fuel in a 
     highway vehicle that meets certain requirements.\306\ 
     Gasoline for this purpose includes gasoline blend 
     stocks.\307\
---------------------------------------------------------------------------
     \306\ Secs. 6421(a) and 6421(e).
     \307\ Sec. 6421(e)(1) and sec. 4083(a)(2)(B).
---------------------------------------------------------------------------
       The Code also provides for a refund of tax for tax-paid 
     fuel sold to a subsequent manufacturer or producer if the 
     subsequent manufacturer or producer uses the fuel, for 
     nonfuel purposes, as a material in the manufacture or 
     production of any other article manufactured or produced by 
     him.\308\
---------------------------------------------------------------------------
     \308\ Sec. 6416(b)(3)(B).
---------------------------------------------------------------------------
     Kerosene
       Definition of kerosene
       By regulation, kerosene is defined as the kerosene 
     described in ASTM Specification D 3699 (No. 1-K and No. 2-K), 
     ASTM Specification D 1655 (kerosene-type jet fuel), and 
     military specifications MIL-DTL-5624T (Grade JP-5) and MIL-
     DTL-83133E (Grade JP-8). Kerosene does not include any liquid 
     that is an excluded liquid.\309\
---------------------------------------------------------------------------
     \309\ Treas. Reg. sec. 48.4081-1(b).
---------------------------------------------------------------------------
       An ``excluded liquid'' is (1) any liquid that contains less 
     than four percent normal paraffins, or (2) any liquid that 
     has a distillation range of 125 degrees Fahrenheit or less, 
     sulfur content of 10 ppm or less, and minimum color of +27 
     Saybolt. These liquids are commonly known as ``mineral 
     spirits'' and are obtained by distillation of crude oil. 
     Mineral spirits are used for a wide variety of purposes, such 
     as in dry-cleaning fluids, paint thinners, varnishes, 
     photocopy toners, inks, adhesives, and as general purpose 
     cleaners and degreasers.
       Exemptions
       Diesel fuel and kerosene that is to be used for a 
     nontaxable purpose will not be taxed upon removal from the 
     terminal if it is dyed to indicate its nontaxable purpose. 
     Kerosene received by pipeline or vessel to satisfy a 
     feedstock purpose is exempt from the dyeing requirement.\310\ 
     Pursuant to Treasury regulations, nonbulk removals of 
     kerosene for a feedstock purpose by a registered feedstock 
     user also are exempt.\311\ The person receiving the kerosene 
     must be registered with the IRS and provide a certificate 
     noting that the kerosene will be used for a feedstock purpose 
     in order for the exemption to apply. Pursuant to the Treasury 
     regulations, tax also does not apply upon the removal or 
     entry of kerosene if the person otherwise liable for tax is a 
     taxable fuel registrant and such person uses the kerosene for 
     a feedstock purpose.\312\
---------------------------------------------------------------------------
     \310\ Sec. 4082(d)(1).
     \311\ Treas. Reg. sec. 48.4082-7(c).
     \312\ Treas. Reg. sec. 48.4082-7(c).
---------------------------------------------------------------------------
       ``Feedstock purpose'' means the use of kerosene for nonfuel 
     purposes in the manufacture or production of any substance 
     (other than gasoline, diesel fuel or special fuels subject to 
     tax).\313\ Thus, for example, kerosene is used for a 
     feedstock purpose when it is used as an ingredient in the 
     production of paint and is not used for a feedstock purpose 
     when it is used to power machinery at a factory where paint 
     is produced.
---------------------------------------------------------------------------
     \313\ Treas. Reg. sec. 48.4082-7(b).
---------------------------------------------------------------------------
       Refunds and payments for nontaxable uses of kerosene
       If tax-paid kerosene is used by any person in a nontaxable 
     use, the Secretary is required to pay (without interest) to 
     the ultimate purchaser of such fuel an amount equal to the 
     aggregate amount of tax imposed on such fuel. For this 
     purpose, a nontaxable use is any use which is exempt from the 
     tax imposed by section 4041(a)(1) other than by reason of 
     prior imposition of tax. Claims relating to kerosene used on 
     a farm for farming purposes and by a State are made by 
     registered ultimate vendors. Claims relating to undyed 
     kerosene sold from a blocked pump \314\ or sold for blending 
     with heating oil to be used during periods of extreme or 
     unseasonable cold are also made by registered ultimate 
     vendors. Special rules apply with respect to aviation-grade 
     kerosene.
---------------------------------------------------------------------------
     \314\ A blocked pump is a fuel pump that is used to dispense 
     undyed kerosene that is sold at retail for use by the buyer 
     in any nontaxable use; is at a fixed location; is identified 
     with a legible and conspicuous notice stating ``Undyed 
     Untaxed Kerosene, Nontaxable Use Only''; and cannot 
     reasonably be used to dispense fuel directly into the fuel 
     supply tank of a diesel-powered highway vehicle or diesel-
     powered train; or is locked by the vendor after each sale and 
     unlocked only in response to a request by a buyer for undyed 
     kerosene for use other than as a fuel in a diesel-powered 
     highway vehicle or diesel-powered train.
---------------------------------------------------------------------------
       The Code also provides for a refund of tax for tax-paid 
     fuel sold to a subsequent manufacturer or producer if the 
     subsequent manufacturer or producer uses the fuel, for 
     nonfuel purposes, as a material in the manufacture or 
     production of any other article manufactured or produced by 
     him.\315\
---------------------------------------------------------------------------
     \315\ Sec. 6416(b)(3)(B).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

     Gasoline blend stocks
       The Senate amendment partially repeals exemptions provided 
     in Treas. Reg. sec. 48.4081-4, which, under certain 
     conditions, exempts from tax gasoline blend stocks that are 
     not used to produce finished gasoline or that are received at 
     an approved terminal or refinery. Under the Senate amendment, 
     tax is imposed on all nonbulk entries and removals of 
     gasoline blend stocks, regardless of whether they will be 
     used to produce finished gasoline or received at an approved 
     terminal or refinery. The Senate amendment does not change 
     the exemption for bulk transfers to registered industrial 
     users.
     Kerosene and mineral spirits
       The Senate amendment requires that with respect to fuel 
     entered or removed after September 30, 2005, the Secretary 
     shall include mineral spirits in the definition of kerosene. 
     Thus, for entries and removals after September 30, 2005, 
     mineral spirits are taxed and exempt from tax in the same 
     manner as kerosene.
       Effective date.--The Senate amendment is effective for fuel 
     removed or entered after September 30, 2005.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.
     11. Nonapplication of export exemption to delivery of fuel to 
         motor vehicles removed from United States (sec. 5619 of 
         the Senate amendment)


                              Present Law

       A ``taxable fuel'' is gasoline, diesel fuel (including any 
     liquid, other than gasoline, which is suitable for use as a 
     fuel in a diesel-powered highway vehicle or train), and 
     kerosene. \316\ An excise tax is imposed upon (1) the removal 
     of any taxable fuel from a refinery or terminal, (2) the 
     entry of any taxable fuel into the United States, or (3) the 
     sale of any taxable fuel to any person who is not registered 
     with the IRS to receive untaxed fuel, unless there was a 
     prior taxable removal or entry. \317\ The tax does not apply 
     to any removal or entry of taxable fuel transferred in bulk 
     to a terminal or refinery if the person removing or entering 
     the taxable fuel, the operator of such pipeline or vessel, 
     and the operator of such terminal or refinery are registered 
     with the Secretary. \318\
---------------------------------------------------------------------------
     \316\ Sec. 4083(a).
     \317\ Sec. 4081(a)(1).
     \318\ Sec. 4081(a)(1)(B).
---------------------------------------------------------------------------
       Special provisions under the Code provide for a refund of 
     tax to any person who sells gasoline to another for 
     exportation. \319\ Section 6421(c) provides ``If gasoline is 
     sold to any person for any purpose described in paragraph 
     (2), (3), (4), or (5) of section 4221(a), the Secretary shall 
     pay (without interest) to such person an amount equal to the 
     product of the number of gallons so sold multiplied by the 
     rate at which tax was imposed on such gasoline by section 
     4081.'' Section 4221 provides, in pertinent part, ``Under 
     regulations prescribed by the Secretary, no tax shall be 
     imposed under this chapter . . . on the sale by the 
     manufacturer . . . of an article . . . for export, or for 
     resale by the purchaser to a second purchaser for export. . . 
     but only if such exportation or use is to occur before any 
     other use. . . .''
---------------------------------------------------------------------------
     \319\ Secs. 6421(c) and 4221(a)(2).
---------------------------------------------------------------------------
       It is the IRS administrative position that the exemption 
     from manufacturers excise tax by reason of exportation does 
     not apply to the sale of motor fuel pumped into a fuel tank 
     of a vehicle that is to be driven, or shipped, directly out 
     of the United States. \320\
---------------------------------------------------------------------------
     \320\ Rev. Rul. 69-150, 1969-1 C.B. 286.
---------------------------------------------------------------------------
       A duty-free sales facility that meets certain conditions 
     may sell and deliver for export from the customs territory of 
     the

[[Page H7549]]

     United States duty-free merchandise. Duty-free merchandise is 
     merchandise sold by a duty-free sales facility on which 
     neither Federal duty nor Federal tax has been assessed 
     pending exportation from the customs territory of the United 
     States. The statutes covering duty-free facilities do not 
     contain any limitation on what goods may qualify for duty-
     free treatment.
       The issue of whether fuel sold from a duty-free facility 
     and placed into the tank of an automobile that is then driven 
     out of the country is exported fuel has been litigated in the 
     courts. \321\ The cases involved the same operator of a duty-
     free facility seeking a refund of excise tax. The facility is 
     near the Canadian border and is configured in such a way that 
     anyone leaving the facility must depart the United States and 
     enter into Canada. Both the Federal Circuit and the Sixth 
     Circuit Court of Appeals are in accord with the IRS position 
     and ruled that the operator of the duty-free facility did not 
     have standing to pursue a claim for refund. \322\
---------------------------------------------------------------------------
     \321\ See Ammex Inc. v. United States, 52 Fed. Cl. 303 (2002) 
     (on cross-motions for summary judgment, the court found that 
     plaintiff established standing to proceed to trial pursuant 
     to sec. 6421(c) respecting its gasoline purchases only); and 
     Ammex Inc. v. United States, 2002 U.S. Dist. LEXIS 25771 
     (E.D. Mich. July 31, 2002) (granting defendant's motion for 
     summary judgment), reconsideration denied, Ammex, Inc. v. 
     United States, 2002 U.S. Dist. LEXIS 22893 (E.D. Mich. Oct. 
     22, 2002). Although the Claims Court ruled that Ammex had 
     standing to challenge the excise tax on gasoline, it 
     subsequently held that Ammex was not entitled to a payment 
     pursuant to sec. 6421(c) because it failed to prove at trial 
     that it did not pass the tax on to its customers. Ammex Inc. 
     v. United States, 2003 U.S. Claims LEXIS 63 (Fed. Cl. Mar. 
     26, 2003). The Claims Court finding that the plaintiff had 
     standing was reversed on appeal.
     \322\ See Ammex Inc. v. United States, 384 F.3d 1368 (Fed. 
     Cir. 2004) cert. denied 125 S.Ct. 1697 (2005); and Ammex Inc. 
     v. United States, 367 F.3d 530 (6th Cir. 2004) cert. denied 
     125 S.Ct. 1695 (2005).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment reaffirms the long-standing IRS 
     position taken in Rev. Rul. 69-150 and restates present law 
     by amending the Code definition of export to exclude the 
     delivery of a taxable fuel into a fuel tank of a motor 
     vehicle that is shipped or driven out of the United States. 
     It also imposes a tax on the sale of taxable fuel at a duty-
     free sales enterprise unless there was a prior taxable 
     removal, or entry of such fuel.
       Ammex was not entitled to a payment pursuant to sec. 
     6421(c) because it failed to prove at trial that it did not 
     pass the tax on to its customers. Ammex Inc. v. United 
     States, 2003 U.S. Claims LEXIS 63 (Fed. Cl. Mar. 26, 2003). 
     The Claims Court finding that the plaintiff had standing was 
     reversed on appeal.
       Effective date.--The Senate amendment applies to sales or 
     deliveries made after the date of enactment.


                          Conference Agreement

       The conferees believe that it is beyond dispute that the 
     delivery of fuel into a fuel tank of a motor vehicle that is 
     shipped or driven out of the United States is not an act of 
     exportation of such fuel. The fuel in the fuel tank is not 
     carried in the vehicle for the purpose of transporting the 
     fuel as a commodity from one place to another; the fuel is 
     there to power the vehicle. The conference agreement does not 
     include the Senate amendment because it is present law, 
     supported by the decisions of two Federal appellate courts.
     12. Impose assessable penalty on dealers of adulterated fuel 
         (sec. 5620 of the Senate amendment and new sec. 6720A of 
         the Code)


                              Present Law

       Diesel fuel, gasoline, and kerosene are taxable fuels. 
     Diesel fuel is defined as (1) any liquid (other than 
     gasoline) which is suitable for use as a fuel in a diesel-
     powered highway vehicle or a diesel powered train, (2) 
     transmix, and (3) diesel fuel blend stocks identified by the 
     Secretary. \323\ As a defense to Federal and State excise tax 
     liability, some taxpayers have contended that certain diesel 
     fuel mixtures or additives do not meet the requirements of 
     (1) above because they are not approved as additives or 
     mixtures by the EPA. In addition, under present law, untaxed 
     fuel additives, including certain contaminants, may displace 
     taxed diesel fuel in a mixture.
---------------------------------------------------------------------------
     \323\ Sec. 4083(a)(3)(A).
---------------------------------------------------------------------------
       The Code provides that any person who, in connection with a 
     sale or lease (or offer for sale or lease) of an article, 
     knowingly makes any false statement ascribing a particular 
     part of the price of the article to a tax imposed by the 
     United States, or intended to lead any person to believe that 
     any part of the price consists of such a tax, is guilty of a 
     misdemeanor. \324\ Another Code provision provides that any 
     person who has in his custody or possession any article on 
     which taxes are imposed by law, for the purpose of selling 
     the article in fraud of the internal revenue laws or with 
     design to avoid payment of the taxes thereon, is liable for 
     ``a penalty of $500 or not less than double the amount of 
     taxes fraudulently attempted to be evaded.'' \325\
---------------------------------------------------------------------------
     \324\ Sec. 7211. Such a violation is punishable by a fine not 
     to exceed $1,000, or by imprisonment for not more than one 
     year, or both.
     \325\ Sec. 7268.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment adds a new assessable penalty. Any 
     person other than a retailer who knowingly transfers for 
     resale, sells for resale, or holds out for resale for use in 
     a diesel-powered highway vehicle (or train) any liquid that 
     does not meet applicable EPA regulations (as defined in 
     section 45H(c)(3)) \326\ is subject to a penalty of $10,000 
     for each such transfer, sale or holding out for resale, in 
     addition to the tax on such liquid, if any. Any retailer who 
     knowingly holds out for sale (other than for resale) any such 
     liquid, is subject to a $10,000 penalty for each such holding 
     out for sale, in addition to the tax on such liquid, if any.
---------------------------------------------------------------------------
     \326\ Section 45H(c)(3) refers to ``the Highway Diesel Fuel 
     Sulfur Control Requirements of the Environmental Protection 
     Agency.''
---------------------------------------------------------------------------
       The penalty is dedicated to the Highway Trust Fund.
       Effective date.--The Senate amendment is effective for any 
     transfer, sale, or holding out for sale or resale occurring 
     after the date of enactment.


                          Conference Agreement

       The conference agreement follows the Senate amendment.

                IV. FUELS-RELATED TECHNICAL CORRECTIONS

A. Fuels-Related Technical Corrections to American Jobs Creation Act of 
                            2004 (``AJCA'')

       The provision includes technical corrections to AJCA. Such 
     technical corrections take effect as if included in the 
     section of AJCA to which the correction relates.
     1. Volumetric ethanol excise tax credit (sec. 10003(a) of the 
         House bill, sec. 5401(a) of the Senate amendment, sec. 
         301 of AJCA, and sec. 6427 of the Code)


                               House Bill

       AJCA repealed the reduced tax rates for alcohol fuels and 
     taxable fuels to be blended with alcohol. The technical 
     correction makes a conforming amendment to eliminate the 
     refund provisions based on those reduced rates (secs. 6427(f) 
     and 6427(o)).


                            Senate Amendment

       The Senate amendment is the same as the House bill.


                          Conference Agreement

       The conference agreement follows the House bill and the 
     Senate amendment.
     2. Aviation fuel (sec. 10003(b) of the House bill, sec. 
         5401(b) of the Senate amendment, sec. 853 of AJCA, and 
         sec. 4081 of the Code)


                               House Bill

       Section 853 of AJCA moved the taxation of jet fuel 
     (aviation-grade kerosene) from section 4091 to section 4081 
     of the Code and repealed section 4091. The termination date 
     for the 21.8 cent per gallon rate for noncommercial aviation 
     jet fuel was inadvertently omitted from the Act. The 
     technical correction clarifies that after September 30, 2007, 
     the rate for jet fuel used in noncommercial aviation will be 
     4.3 cents per gallon (sec. 4081(a)(2)(C)).
       An additional technical correction clarifies that users of 
     aviation fuel in commercial aviation are required to be 
     registered with the IRS in order for the 4.3-cents-per-gallon 
     rate to apply (including for purposes of the self-assessment 
     of tax by commercial aircraft operators).


                            Senate Amendment

       The Senate amendment generally follows the House bill with 
     certain technical drafting changes to accommodate changes 
     made by other provisions of the Senate amendment. The Senate 
     amendment also corrects cross-references in section 
     6421(f)(2) to the definition of noncommercial aviation to 
     reflect changes made by the AJCA change in the tax treatment 
     of fuel used in aviation.


                          Conference Agreement

       The conference agreement follows the Senate amendment.

B. Fuels-Related Technical Corrections to Transportation Equity Act for 
                     the 21st Century (``TEA 21'')

       The provision includes a technical correction to TEA 21. 
     The amendment made by the technical correction takes effect 
     as if included in the section of TEA 21 to which it relates.
     1. Coastal Wetlands sub-account (sec. 5401(c) of the Senate 
         amendment, sec. 9005 of TEA 21, and sec. 9504 of the 
         Code)


                               House Bill

       No provision.


                            Senate Amendment

       Section 9005(b)(3) of TEA 21 redesignated Code section 
     9504(b)(2)(B), referring to the purposes of the Coastal 
     Wetlands Planning, Protection and Restoration Act, as 
     9504(b)(2)(C), but did not cross reference the limitation for 
     such purposes of taxes on gasoline used in the nonbusiness 
     use of small-engine outdoor power equipment. The technical 
     correction makes a conforming cross- reference amendment 
     (sec. 9504(b)(2)).


                          Conference Agreement

       The conference agreement follows the Senate amendment.

         C. Correction to the Energy Tax Incentives Act of 2005

       The provision includes a technical correction to the Energy 
     Tax Incentives Act

[[Page H7550]]

     (''ETIA'') of 2005. The amendment made by the technical 
     correction takes effect as if included in the section of the 
     ETIA to which it relates.
     1. Erroneous reference to highway reauthorization bill (sec. 
         38 of the Code)


                               House Bill

       No provision.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference agreement corrects an erroneous reference to 
     the highway reauthorization bill in section 38 as added by 
     the Energy Policy Act of 2005.

                       V. TAX COMPLEXITY ANALYSIS

       Section 4022(b) of the Internal Revenue Service Reform and 
     Restructuring Act of 1998 (the ``IRS Reform Act'') requires 
     the Joint Committee on Taxation (in consultation with the 
     Internal Revenue Service and the Department of the Treasury) 
     to provide a tax complexity analysis. The complexity analysis 
     is required for all legislation reported by the Senate 
     Committee on Finance, the House Committee on Ways and Means, 
     or any committee of conference if the legislation includes a 
     provision that directly or indirectly amends the Internal 
     Revenue Code (the ``Code'') and has widespread applicability 
     to individuals or small businesses.
       The staff of the Joint Committee on Taxation has determined 
     that a complexity analysis is not required under section 
     4022(b) of the IRS Reform Act because the bill contains no 
     provisions that have ``widespread applicability'' to 
     individuals or small businesses.

     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill (except title X) and the 
     Senate amendment (except title V), and modifications 
     committed to conference:
     Don Young,
     Thomas E. Petri,
     Sherwood Boehlert,
     Howard Coble,
     John J. Duncan, Jr.,
     John L. Mica,
     Pete Hoekstra,
     Steven C. LaTourette,
     Spencer Bachus,
     Richard H. Baker,
     Gary G. Miller,
     Robin Hayes,
     Rob Simmons,
     Henry E. Brown, Jr.,
     Sam Graves,
     Bill Shuster,
     John Boozman,
     James L. Oberstar,
     Nick Rahall,
     Peter A. DeFazio,
     Jerry F. Costello,
     Eleanor Holmes Norton,
     Jerrold Nadler,
     Robert Menendez,
     Corrine Brown,
     Bob Filner,
     Eddie Bernice Johnson,
     Gene Taylor,
     Juanita Millender-McDonald,
     Elijah E. Cummings,
     Earl Blumenauer,
     Ellen O. Tauscher,
     From the Committee on the Budget, for consideration of secs. 
     8001-8003 of the House bill, and title III of the Senate 
     amendment, and modifications committed to conference:
     Jim Nussle,
     Mario Diaz-Balart,
     John Spratt,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 1118, 1605, 1809, 3018, and 3030 of 
     the House bill, and secs. 1304, 1819, 6013, 6031, 6038, and 
     7603 of the Senate amendment, and modifications committed to 
     conference:
     Ric Keller,
     John Barrow,
     From the Committee on Energy and Commerce, for consideration 
     of provisions in the House bill and Senate amendment relating 
     to Clean Air Act provisions of transportation planning 
     contained in secs. 6001 and 6006 of the House bill, and secs. 
     6005 and 6006 of the Senate amendment; and secs. 1210, 1824, 
     1833, 5203, and 6008 of the House bill, and secs. 1501, 1511, 
     1522, 1610-1619, 1622, 4001, 4002, 6016, 6023, 7218, 7223, 
     7251, 7252, 7256-7262, 7324, 7381, 7382, and 7384 of the 
     Senate amendment, and modifications committed to conference:
     Joe Barton,
     Chip Pickering,
     John D. Dingell,
     From the Committee on Government Reform, for consideration of 
     sec. 4205 of the House bill, and sec. 2101 of the Senate 
     amendment, and modifications committed to conference:
     Tom Davis,
     Todd R. Platts,
     From the Committee on Homeland Security, for consideration of 
     secs. 1834, 6027, 7324, and 7325 of the Senate amendment, and 
     modifications committed to conference:
     Chris Cox,
     Daniel E. Lungren,
     Bennie G. Thompson,
     From the Committee on the Judiciary, for consideration of 
     secs. 1211, 1605, 1812, 1832, 2013, 2017, 4105, 4201, 4202, 
     4214, 7018-7020, and 7023 of the House bill, and secs. 1410, 
     1512, 1513, 6006, 6029, 7108, 7113, 7115, 7338, 7340, 7343, 
     7345, 7362, 7363, 7406, 7407, and 7413 of the Senate 
     amendment, and modifications committed to conference:
     Lamar Smith,
     John Conyers,
     From the Committee on Resources, for consideration of secs. 
     1119, 3021, 6002, and 6003 of the House bill, and secs. 1501, 
     1502, 1505, 1511, 1514, 1601, 1603, 6040, and 7501-7518 of 
     the Senate amendment, and modifications committed to 
     conference:
     Greg Walden,
     Ron Kind,
     From the Committee on Rules, for consideration of secs. 8004 
     and 8005 of the House bill, and modifications committed to 
     conference:
     David Dreier,
     Shelley Moore Capito,
     Jim McGovern,
     From the Committee on Science, for consideration of secs. 
     2010, 3013, 3015, 3034, 3039, 3041, 4112, and title V of the 
     House bill, and title II and secs. 6014, 6015, 6036, 7118, 
     7212, 7214, 7361, and 7370 of the Senate amendment, and 
     modifications committed to conference:
     Vernon J. Ehlers,
     David Reichert,
     Bart Gordon,
     From the Committee on Ways and Means, for consideration of 
     title X of the House bill, and title V of the Senate 
     amendment, and modifications committed to conference:
     William M. Thomas,
     Jim McCrery,
     For consideration of the House bill and Senate amendment, and 
     modifications committed to conference:
     Tom DeLay,
                                Managers on the Part of the House.

     James M. Inhofe,
     John Warner,
     Kit Bond,
     George V. Voinovich,
     Lincoln Chafee,
     Lisa Murkowski,
     John Thune,
     Jim DeMint,
     Johnny Isakson,
     David Vitter,
     Chuck Grassley,
     Orrin Hatch,
     Richard Shelby,
     Wayne Allard,
     Ted Stevens,
     Trent Lott,
     Jim Jeffords,
     Max Baucus,
     Joe Lieberman,
     Barbara Boxer,
     Tom Carper,
     Hillary Rodham Clinton,
     Frank R. Lautenberg,
     Barack Obama,
     Kent Conrad,
     Daniel K. Inouye,
     Jay Rockefeller,
     Paul Sarbanes,
     Jack Reed,
     Tim Johnson,
                               Managers on the Part of the Senate.

     

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