[Congressional Record (Bound Edition), Volume 150 (2004), Part 1]
[Senate]
[Pages 1188-1209]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2269. Mr. SHELBY proposed an amendment to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; as follows:

       At the appropriate place in the bill, insert the following:

                    TITLE III--PUBLIC TRANSPORTATION

     SEC. 3001. SHORT TITLE.

       This title may be cited as the Federal Public 
     Transportation Act of 2004.

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

       (a) Amendments to Title 49.--Except as otherwise 
     specifically provided, whenever in this title an amendment or 
     repeal is expressed in terms of an amendment to, or repeal 
     of, a section or other provision of law, the reference shall 
     be considered to be made to a section or other provision of 
     title 49, United States Code.
       (b) Updated Terminology.--Except for sections 5301(f), 
     5302(a)(7), and 5315, chapter 53, including the chapter 
     analysis, is amended by striking ``mass transportation'' each 
     place it appears and inserting ``public transportation''.

     SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

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

     SEC. 3004. DEFINITIONS.

       Section 5302(a) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (G)(i), by inserting ``including the 
     intercity bus portions of such facility or mall,'' after 
     ``transportation mall,'';
       (B) in subparagraph (G)(ii), by inserting ``, except for 
     the intercity bus portion of intermodal facilities or 
     malls,'' after ``commercial revenue-producing facility'';
       (C) in subparagraph (H)--
       (i) by striking ``and'' after ``innovative'' and inserting 
     ``or''; and
       (ii) by striking ``or'' after the semicolon at the end;
       (D) in subparagraph (I), by striking the period at the end 
     and inserting a semicolon; and
       (E) by adding at the end the following:
       ``(J) crime prevention and security, including--
       ``(i) projects to refine and develop security and emergency 
     response plans; or
       ``(ii) projects to detect chemical or biological agents in 
     public transportation;
       ``(K) conducting emergency response drills with public 
     transportation agencies and local first response agencies or 
     security training for public transportation employees, except 
     for expenses relating to operations; or
       ``(L) establishing a debt service reserve, made up of 
     deposits with a bondholder's trustee, to ensure the timely 
     payment of principal and interest on bonds issued by a grant 
     recipient to finance an eligible project under this 
     chapter.'';
       (2) by striking paragraph (9);
       (3) by redesignating paragraph (8) as paragraph (9);
       (4) by striking paragraph (7) and inserting the following:
       ``(7) Mass transportation.--The term `mass transportation' 
     means public transportation.
       ``(8) Mobility management.--The term `mobility management' 
     means a short-range planning or management activity or 
     project that does not include operating public transportation 
     services and--
       ``(A) improves coordination among public transportation 
     providers, including private companies engaged in public 
     transportation;
       ``(B) addresses customer needs by tailoring public 
     transportation services to specific market niches; or
       ``(C) manages public transportation demand.'';
       (5) by amending paragraph (10) to read as follows:
       ``(10) Public transportation.--The term `public 
     transportation' means transportation by a conveyance that 
     provides local regular and continuing general or special 
     transportation to the public, but does not include

[[Page 1189]]

     school bus, charter bus, intercity passenger rail, or 
     sightseeing transportation.'';
       (6) in subparagraphs (A) and (E) of paragraph (15), by 
     striking ``and'' each place it appears and inserting ``or'';
       (7) by striking paragraph (16); and
       (8) by redesignating paragraph (17) as paragraph (16), to 
     read as follows:
       ``(16) Urbanized area.--The term `urbanized area' means an 
     area encompassing a population of not less than 50,000 people 
     that has been defined and designated in the most recent 
     decennial census as an `urbanized area' by the Secretary of 
     Commerce.''.

     SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING.

       Section 5303 is amended to read as follows:

     ``Sec. 5303. Metropolitan transportation planning

       ``(a) Definitions.--As used in this section and in section 
     5304, the following definitions shall apply:
       ``(1) Consultation.--A `consultation' occurs when 1 party--
       ``(A) confers with another identified party in accordance 
     with an established process;
       ``(B) prior to taking action, considers that party's views; 
     and
       ``(C) periodically informs that party about action taken.
       ``(2) Metropolitan planning area.--The term `metropolitan 
     planning area' means the geographic area determined by 
     agreement between the metropolitan planning organization and 
     the Governor under subsection (d).
       ``(3) Metropolitan planning organization.--The term 
     `metropolitan planning organization' means the Policy Board 
     of the organization designated under subsection (c).
       ``(4) Non-metropolitan area.--The term `non-metropolitan 
     area' means any geographic area outside all designated 
     metropolitan planning areas.
       ``(5) Non-metropolitan local official.--The term `non-
     metropolitan local official' means any elected or appointed 
     official of general purpose local government located in a 
     non-metropolitan area who is responsible for transportation 
     services for such local government.
       ``(b) General Requirements.--
       ``(1) Development of plans.--To accomplish the objectives 
     described in section 5301(a), each metropolitan planning 
     organization, in cooperation with the State and public 
     transportation operators, shall develop transportation plans 
     for metropolitan planning areas of the State in which it is 
     located.
       ``(2) Contents.--The plans developed under paragraph (1) 
     for each metropolitan planning area shall provide for the 
     development and integrated management and operation of 
     transportation systems and facilities (including pedestrian 
     walkways and bicycle transportation facilities) that will 
     function as an intermodal transportation system for the 
     metropolitan planning area and as an integral part of an 
     intermodal transportation system for the State and the United 
     States.
       ``(3) Process of development.--The process for developing 
     the plans shall provide for consideration of all modes of 
     transportation and shall be continuing, cooperative, and 
     comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       ``(4) Planning and project development.--The metropolitan 
     planning organization, the State Department of 
     Transportation, and the appropriate public transportation 
     provider shall agree upon the approaches that will be used to 
     evaluate alternatives and identify transportation 
     improvements that address the most complex problems and 
     pressing transportation needs in the metropolitan area.
       ``(c) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process under this section, a metropolitan planning 
     organization shall be designated for each urbanized area with 
     a population of more than 50,000 residents--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that combined represent not 
     less than 75 percent of the affected population (including 
     the incorporated city or cities named by the Bureau of the 
     Census in designating the urbanized area); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Structure.--Each metropolitan planning organization 
     designated under paragraph (1) that serves an area identified 
     as a transportation management area shall consist of--
       ``(A) local elected officials;
       ``(B) officials of public agencies that administer or 
     operate major modes of transportation in the metropolitan 
     area; and
       ``(C) appropriate State officials.
       ``(3) Limitation on statutory construction.--Nothing in 
     this subsection shall be construed to interfere with the 
     authority, under any State law in effect on December 18, 
     1991, of a public agency with multimodal transportation 
     responsibilities--
       ``(A) to develop plans and programs for adoption by a 
     metropolitan planning organization; and
       ``(B) to develop long-range capital plans, coordinate 
     transit services and projects, and carry out other activities 
     pursuant to State law.
       ``(4) Continuing designation.--The designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       ``(5) Redesignation procedures.--A metropolitan planning 
     organization may be redesignated by agreement between the 
     Governor and units of general purpose local government that 
     combined represent not less than 75 percent of the existing 
     planning area population (including the incorporated city or 
     cities named by the Bureau of the Census in designating the 
     urbanized area) as appropriate to carry out this section.
       ``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be designated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and complexity 
     of the existing metropolitan planning area make designation 
     of more than 1 metropolitan planning organization for the 
     area appropriate.
       ``(d) Metropolitan Planning Area Boundaries.--
       ``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.
       ``(2) Included area.--Each metropolitan planning area--
       ``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period for the transportation plan; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Office of Management and Budget.
       ``(3) Identification of new urbanized areas within existing 
     planning area boundaries.--The designation by the Bureau of 
     the Census of new urbanized areas within an existing 
     metropolitan planning area shall not require the 
     redesignation of the existing metropolitan planning 
     organization.
       ``(4) Existing metropolitan planning areas in 
     nonattainment.--Notwithstanding paragraph (2), in the case of 
     an urbanized area designated as a nonattainment area for 
     ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 
     7401 et seq.), the boundaries of the metropolitan planning 
     area in existence as of the date of enactment of this 
     paragraph shall be retained, except that the boundaries may 
     be adjusted by agreement of the Governor and affected 
     metropolitan planning organizations in accordance with 
     paragraph (5).
       ``(5) New metropolitan planning areas in nonattainment.--If 
     an urbanized area is designated after the date of enactment 
     of this paragraph in a nonattainment area for ozone or carbon 
     monoxide, the boundaries of the metropolitan planning area--
       ``(A) shall be established in accordance with subsection 
     (c)(1);
       ``(B) shall encompass the areas described in paragraph 
     (2)(A);
       ``(C) may encompass the areas described in paragraph 
     (2)(B); and
       ``(D) may address any nonattainment identified under the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or carbon 
     monoxide.
       ``(e) Coordination in Multistate Areas.--
       ``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       ``(2) Interstate compacts.--States are authorized--
       ``(A) to enter into agreements or compacts with other 
     States, which are not in conflict with any law of the United 
     States, for cooperative efforts and mutual assistance in 
     support of activities authorized under this section as the 
     activities pertain to interstate areas and localities within 
     the States; and
       ``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       ``(3) Lake tahoe region.--
       ``(A) Definition.--In this paragraph, the term `Lake Tahoe 
     region' has the meaning given the term `region' in 
     subdivision (a) of article II of the Tahoe Regional Planning 
     Compact, as set forth in the first section of Public Law 96-
     551 (94 Stat. 3234).
       ``(B) Transportation planning process.--The Secretary 
     shall--
       ``(i) establish with the Federal land management agencies 
     that have jurisdiction over land in the Lake Tahoe region a 
     transportation planning process for the region; and
       ``(ii) coordinate the transportation planning process with 
     the planning process required of State and local governments 
     under this section and section 5304.
       ``(C) Interstate compact.--
       ``(i) In general.--Subject to clause (ii) and 
     notwithstanding subsection (c), to carry out the 
     transportation planning process required by this section, 
     California and Nevada may designate a metropolitan planning 
     organization for the Lake Tahoe region, by agreement between 
     the Governors of the States of California and Nevada and 
     units of general

[[Page 1190]]

     purpose local government that combined represent not less 
     than 75 percent of the affected population (including the 
     incorporated city or cities named by the Bureau of the Census 
     in designating the urbanized area), or in accordance with 
     procedures established by applicable State or local law.
       ``(ii) Involvement of federal land management agencies.--

       ``(I) Representation.--The policy board of a metropolitan 
     planning organization designated under clause (i) shall 
     include a representative of each Federal land management 
     agency that has jurisdiction over land in the Lake Tahoe 
     region.
       ``(II) Funding.--In addition to funds made available to the 
     metropolitan planning organization under other provisions of 
     title 23 and this chapter, not more than 1 percent of the 
     funds allocated under section 202 of title 23 may be used to 
     carry out the transportation planning process for the Lake 
     Tahoe region under this subparagraph.

       ``(D) Activities.--Highway projects included in 
     transportation plans developed under this paragraph--
       ``(i) shall be selected for funding in a manner that 
     facilitates the participation of the Federal land management 
     agencies that have jurisdiction over land in the Lake Tahoe 
     region; and
       ``(ii) may, in accordance with chapter 2 of title 23, be 
     funded using funds allocated under section 202 of title 23.
       ``(f) Coordination of Metropolitan Planning 
     Organizations.--
       ``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act (42 
     U.S.C. 7401 et seq.), each metropolitan planning organization 
     shall consult with the other metropolitan planning 
     organizations designated for such area and the State in the 
     coordination of plans required by this section.
       ``(2) Transportation improvements located in multiple 
     metropolitan planning areas.--If a transportation improvement 
     funded from the highway trust fund is located within the 
     boundaries of more than 1 metropolitan planning area, the 
     metropolitan planning organizations shall coordinate plans 
     regarding the transportation improvement.
       ``(3) Interregional and interstate project impacts.--
     Planning for National Highway System, commuter rail projects, 
     or other projects with substantial impacts outside a single 
     metropolitan planning area or State shall be coordinated 
     directly with the affected, contiguous metropolitan planning 
     organizations and States.
       ``(4) Coordination with other planning processes.--
       ``(A) In general.--The Secretary shall encourage each 
     metropolitan planning organization to coordinate its planning 
     process, to the maximum extent practicable, with those 
     officials responsible for other types of planning activities 
     that are affected by transportation, including State and 
     local land use planning, economic development, environmental 
     protection, airport operations, housing, and freight.
       ``(B) Other considerations.--The metropolitan planning 
     process shall develop transportation plans with due 
     consideration of, and in coordination with, other related 
     planning activities within the metropolitan area. This should 
     include the design and delivery of transportation services 
     within the metropolitan area that are provided by--
       ``(i) recipients of assistance under this chapter;
       ``(ii) governmental agencies and nonprofit organizations 
     (including representatives of the agencies and organizations) 
     that receive Federal assistance from a source other than the 
     Department of Transportation to provide nonemergency 
     transportation services; and
       ``(iii) recipients of assistance under section 204 of title 
     23.
       ``(g) Scope of Planning Process.--
       ``(1) In general.--The goals and objectives developed 
     through the metropolitan planning process for a metropolitan 
     planning area under this section shall address, in relation 
     to the performance of the metropolitan area transportation 
     systems--
       ``(A) supporting the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency, including through services 
     provided by public and private operators;
       ``(B) increasing the safety of the transportation system 
     for motorized and nonmotorized users;
       ``(C) increasing the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increasing the accessibility and mobility of people 
     and for freight, including through services provided by 
     public and private operators;
       ``(E) protecting and enhancing the environment, promoting 
     energy conservation, and promoting consistency between 
     transportation improvements and State and local land use 
     planning and economic development patterns;
       ``(F) enhancing the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight, including through services provided by public 
     and private operators;
       ``(G) promoting efficient system management and operation; 
     and
       ``(H) emphasizing the preservation of the existing 
     transportation system, including services provided by public 
     and private operators.
       ``(2) Failure to consider factors.--The failure to consider 
     any factor specified in paragraph (1) shall not be reviewable 
     by any court under title 23 or this title, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a transportation plan, a transportation improvement 
     plan, a project or strategy, or the certification of a 
     planning process.
       ``(h) Development of Transportation Plan.--
       ``(1) In general.--Each metropolitan planning organization 
     shall develop, and update not less frequently than every 3 
     years, a transportation plan for its metropolitan planning 
     area in accordance with this subsection. In developing the 
     transportation plan under this section, each metropolitan 
     planning organization shall consider the factors described in 
     subsection (f) over a 20-year forecast period. For the 
     purpose of developing the transportation plan, the 
     metropolitan planning organization, transit operator, and 
     State shall cooperatively develop estimates of funds that 
     will be available to support plan implementation.
       ``(2) Contents.--A transportation plan under this 
     subsection shall be in a form that the Secretary determines 
     to be appropriate and shall contain--
       ``(A) an identification of transportation facilities, 
     including major roadways, public transportation, multimodal 
     and intermodal facilities, and intermodal connectors, that 
     should function as an integrated metropolitan transportation 
     system, emphasizing those facilities that serve important 
     national and regional transportation functions;
       ``(B) a financial plan that--
       ``(i) demonstrates how the adopted transportation plan can 
     be implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the plan;
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the adopted transportation 
     plan if approved by the Secretary and reasonable additional 
     resources beyond those identified in the financial plan were 
     available;
       ``(C) operational and management strategies to improve the 
     performance of existing transportation facilities to relieve 
     vehicular congestion and maximize the safety and mobility of 
     people and goods;
       ``(D) capital investment and other strategies to preserve 
     the existing metropolitan transportation infrastructure and 
     provide for multimodal capacity increases based on regional 
     priorities and needs; and
       ``(E) proposed transportation and transit enhancement 
     activities.
       ``(3) Coordination with clean air act agencies.--In 
     metropolitan areas in nonattainment for ozone or carbon 
     monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), 
     the metropolitan planning organization shall coordinate the 
     development of a transportation plan with the process for 
     development of the transportation control measures of the 
     State implementation plan required by the Clean Air Act.
       ``(4) Participation by interested parties.--
       ``(A) Development of participation plan.--Not less 
     frequently than every 3 years, each metropolitan planning 
     organization shall develop and adopt a plan for participation 
     in the process for developing the metropolitan transportation 
     plan by--
       ``(i) citizens;
       ``(ii) affected public agencies;
       ``(iii) representatives of public transportation employees;
       ``(iv) freight shippers;
       ``(v) providers of freight transportation services;
       ``(vi) private providers of transportation;
       ``(vii) representatives of users of public transit;
       ``(viii) representatives of users of pedestrian walkways 
     and bicycle transportation facilities; and
       ``(ix) other interested parties.
       ``(B) Contents of participation plan.--The participation 
     plan--
       ``(i) shall be developed in a manner the Secretary 
     determines to be appropriate;
       ``(ii) shall be developed in consultation with all 
     interested parties; and
       ``(iii) shall provide that all interested parties have 
     reasonable opportunities to comment on--

       ``(I) the process for developing the transportation plan; 
     and
       ``(II) the contents of the transportation plan.

       ``(C) Certification.--Before the approval of a 
     transportation plan by the Governor and metropolitan planning 
     organizations, each metropolitan planning organization shall 
     certify that it has complied with the requirements of the 
     participation plan it has adopted.
       ``(5) Approval of the transportation plan.--

[[Page 1191]]

       ``(A) In general.--Each transportation plan prepared by a 
     metropolitan planning organization shall be--
       ``(i) approved by the Metropolitan Planning Organization; 
     and
       ``(ii) submitted to the Governor for approval of the first 
     5 years of the plan.
       ``(B) Project advancement.--The projects listed in the 
     first 5 years of the plan may be selected for advancement 
     consistent with the project selection requirements.
       ``(C) Major amendments.--Major amendments to the list 
     described in subparagraph (B), including the addition, 
     deletion, or concept and scope change of a regionally 
     significant project, may not be advanced without--
       ``(i) appropriate public involvement;
       ``(ii) financial planning;
       ``(iii) transportation conformity analyses; and
       ``(iv) a finding by the Federal Highway Administration and 
     Federal Transit Administration that the amended plan was 
     produced in a manner consistent with this section.
       ``(6) Included projects.--
       ``(A) Projects under chapter 1 of title 23 and this 
     chapter.--A transportation plan developed under this section 
     for a metropolitan area shall include the projects and 
     strategies within the metropolitan area that are proposed for 
     funding under chapter 1 of title 23 and this chapter.
       ``(B) Projects under chapter 2 of title 23.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the metropolitan 
     transportation plan.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not regionally significant 
     shall be grouped in 1 line item or identified individually in 
     the metropolitan transportation plan.
       ``(7) Selection of projects.--
       ``(A) In general.--Except as otherwise provided in 
     subsection (i)(4), the selection of federally funded projects 
     in metropolitan planning areas shall be carried out, from the 
     approved transportation plan--
       ``(i) by the State, in the case of projects under chapter 1 
     of title 23 or section 5308, 5310, 5311, or 5317 of this 
     title;
       ``(ii) by the designated recipient, in the case of projects 
     under section 5307; and
       ``(iii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project from the first 5 years of 
     the approved transportation plan in place of another project 
     in the same 5-year period.
       ``(8) Publication requirements.--
       ``(A) Publication of transportation plan.--A transportation 
     plan 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 
     5 years shall be published or otherwise made available for 
     public review by the cooperative effort of the State, transit 
     operator, and the metropolitan planning organization. This 
     listing shall be consistent with the funding categories 
     identified in the first 5 years of the transportation plan.
       ``(C) Rulemaking.--Not later than 120 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Secretary shall issue regulations specifying--
       ``(i) the types of data to be included in the list 
     described in subparagraph (B), including--

       ``(I) the name, type, purpose, and location (geocoded) of 
     each project;
       ``(II) the Federal, State, and local identification numbers 
     assigned to each project;
       ``(III) amounts obligated and expended on each project, 
     sorted by funding source and transportation mode, and 
     including the date on which each obligation was made; and
       ``(IV) the status of each project; and

       ``(ii) the media through which the list described in 
     subparagraph (B) will be made available to the public, 
     including written and visual components for each of the 
     projects listed.
       ``(i) Transportation Management Areas.--
       ``(1) Required identification.--The Secretary shall 
     identify as a transportation management area each urbanized 
     area with a population of more than 200,000 individuals.
       ``(2) Transportation plans.--Transportation plans for a 
     metropolitan planning area serving a transportation 
     management area shall be based on a continuing and 
     comprehensive transportation planning process carried out by 
     the metropolitan planning organization in cooperation with 
     the State and transit operators.
       ``(3) Congestion management system.--
       ``(A) In general.--The transportation planning process 
     under this section shall address congestion management 
     through a process that provides for effective management and 
     operation, based on a cooperatively developed and implemented 
     metropolitan-wide strategy, of new and existing 
     transportation facilities eligible for funding under title 23 
     and this chapter through the use of travel demand reduction 
     and operational management strategies.
       ``(B) Phase-in schedule.--The Secretary shall establish a 
     phase-in schedule that provides for not less than 1-year 
     after the identification of transportation management areas 
     under paragraph (1) to achieve full compliance with the 
     requirements of this section.
       ``(4) Selection of projects.--
       ``(A) In general.--All federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under title 23 
     (except for projects carried out on the National Highway 
     System and projects carried out under the bridge program or 
     the Interstate maintenance program) or under this chapter 
     shall be selected for implementation from the approved 
     transportation plan by the metropolitan planning organization 
     designated for the area in consultation with the State and 
     any affected public transit operator.
       ``(B) National highway system projects.--Projects on the 
     National Highway System carried out within the boundaries of 
     a metropolitan planning area serving a transportation 
     management area and projects carried out within such 
     boundaries under the bridge program or the Interstate 
     maintenance program under title 23 shall be selected for 
     implementation from the approved transportation plan by the 
     State in cooperation with the metropolitan planning 
     organization designated for the area.
       ``(5) Certification.--
       ``(A) In general.--The Secretary shall--
       ``(i) ensure that the metropolitan planning process of a 
     metropolitan planning organization serving a transportation 
     management area is being carried out in accordance with 
     Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less 
     frequently than once every 3 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 Federal 
     law; and
       ``(ii) a transportation plan for the metropolitan planning 
     area has been approved by the metropolitan planning 
     organization and the Governor.
       ``(C) Penalty for failing to certify.--
       ``(i) Withholding project funds.--If the metropolitan 
     planning process of a metropolitan planning organization 
     serving a transportation management area is not certified, 
     the Secretary may withhold any funds otherwise available to 
     the metropolitan planning area for projects funded under 
     title 23 and this chapter.
       ``(ii) Restoration of withheld funds.--Any funds withheld 
     under clause (i) shall be restored to the metropolitan 
     planning area when the metropolitan planning process is 
     certified by the Secretary.
       ``(D) Review of certification.--In making a certification 
     under this paragraph, the Secretary shall provide for public 
     involvement appropriate to the metropolitan area under 
     review.
       ``(j) 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 for 
     the metropolitan planning area that the Secretary determines 
     is appropriate to achieve the purposes of this section, after 
     considering the complexity of transportation problems in the 
     area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans for a metropolitan area that is in 
     nonattainment for ozone or carbon monoxide under the Clean 
     Air Act (42 U.S.C. 7401 et seq.).
       ``(k) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provisions of 
     title 23 or this chapter, Federal funds may not be advanced 
     for transportation management areas classified as 
     nonattainment for ozone or carbon monoxide pursuant to the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for any highway 
     project that will result in a significant increase in 
     carrying capacity for single-occupant vehicles unless the 
     project is addressed through a congestion management process.
       ``(2) Applicability.--This subsection applies to a 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (d).
       ``(l) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed to confer on a metropolitan 
     planning organization the authority to impose legal 
     requirements on any transportation facility, provider, or 
     project that is not eligible under title 23 or this chapter.
       ``(m) Availability of Funds.--Funds set aside under section 
     104(f) of title 23 or section 5308 of this title shall be 
     available to carry out this section.
       ``(n) Continuation of Current Review Practice.--Any 
     decision by the Secretary

[[Page 1192]]

     concerning a plan described in this section shall not be 
     considered to be a Federal action subject to review under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).''.

     SEC. 3006. STATEWIDE TRANSPORTATION PLANNING.

       Section 5304 is amended to read as follows:

     ``Sec. 5304. Statewide transportation planning

       ``(a) General Requirements.--
       ``(1) Development of plans and programs.--To support the 
     policies described in section 5301(a), each State shall 
     develop a statewide transportation plan (referred to in this 
     section as a ``Plan'') and a statewide transportation 
     improvement program (referred to in this section as a 
     ``Program'') for all areas of the State subject to section 
     5303.
       ``(2) Contents.--The Plan and the Program developed for 
     each State shall provide for the development and integrated 
     management and operation of transportation systems and 
     facilities (including pedestrian walkways and bicycle 
     transportation facilities) that will function as an 
     intermodal transportation system for the State and an 
     integral part of an intermodal transportation system for the 
     United States.
       ``(3) Process of development.--The process for developing 
     the Plan and the Program shall--
       ``(A) provide for the consideration of all modes of 
     transportation and the policies described in section 5301(a); 
     and
       ``(B) be continuing, cooperative, and comprehensive to the 
     degree appropriate, based on the complexity of the 
     transportation problems to be addressed.
       ``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--Each State shall--
       ``(1) coordinate planning under this section with the 
     transportation planning activities under section 5303 for 
     metropolitan areas of the State and with other related 
     statewide planning activities, such as trade and economic 
     development and related multistate planning efforts; and
       ``(2) develop the transportation portion of the State 
     implementation plan as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Interstate Agreements.--States may enter into 
     agreements or compacts with other States for cooperative 
     efforts and mutual assistance in support of activities 
     authorized under this section related to interstate areas and 
     localities in the States and establishing authorities the 
     States consider desirable for making the agreements and 
     compacts effective.
       ``(d) Scope of Planning Process.--
       ``(1) In general.--Each State shall carry out a statewide 
     transportation planning process that provides for 
     consideration of projects, strategies, and implementing 
     projects and services that will--
       ``(A) support the economic vitality of the United States, 
     the States, nonmetropolitan areas, and metropolitan areas, 
     especially by enabling global competitiveness, productivity, 
     and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, promote consistency between transportation 
     improvements and State and local land use planning and 
     economic development patterns, and improve the quality of 
     life;
       ``(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 title 23 or this title, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a Plan, a Program, a project or strategy, or the 
     certification of a planning process.
       ``(e) Additional Requirements.--In carrying out planning 
     under this section, each State shall consider--
       ``(1) with respect to nonmetropolitan areas, the concerns 
     of affected local officials with responsibility for 
     transportation;
       ``(2) the concerns of Indian tribal governments and Federal 
     land management agencies that have jurisdiction over land 
     within the boundaries of the State; and
       ``(3) coordination of Plans, Programs, and planning 
     activities with related planning activities being carried out 
     outside of metropolitan planning areas and between States.
       ``(f) Statewide Transportation Plan.--
       ``(1) Development.--Each State shall develop a Plan, with a 
     minimum 20-year forecast period for all areas of the State, 
     that provides for the development and implementation of the 
     intermodal transportation system of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan Areas.--The 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 consultation process shall not require 
     the review or approval of the Secretary.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the Plan shall be developed in consultation with 
     the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the Plan, the State shall--
       ``(A) provide citizens, affected public agencies, 
     representatives of public transportation employees, freight 
     shippers, private providers of transportation, 
     representatives of users of public transportation, 
     representatives of users of pedestrian walkways and bicycle 
     transportation facilities, providers of freight 
     transportation services, and other interested parties with a 
     reasonable opportunity to comment on the proposed Plan; and
       ``(B) identify transportation strategies necessary to 
     efficiently serve the mobility needs of people.
       ``(4) Financial plan.--The Plan may include a financial 
     plan that--
       ``(A) demonstrates how the adopted Plan can be implemented;
       ``(B) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the Plan;
       ``(C) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(D) may include, for illustrative purposes, additional 
     projects that would be included in the adopted Plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(5) 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 (4).
       ``(6) Existing system.--The Plan should include capital, 
     operations and management strategies, investments, 
     procedures, and other measures to ensure the preservation and 
     most efficient use of the existing transportation system.
       ``(g) Statewide Transportation Improvement Program.--
       ``(1) Development.--Each State shall develop a Program for 
     all areas of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan 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 5303.
       ``(B) Nonmetropolitan areas.--With respect to each 
     nonmetropolitan area in the State, the Program shall be 
     developed in consultation with affected nonmetropolitan local 
     officials with responsibility for transportation. The 
     consultation process shall not require the review or approval 
     of the Secretary.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the Program shall be developed in consultation 
     with the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the Program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public transit, representatives 
     of users of pedestrian walkways and bicycle transportation 
     facilities, and other interested parties with a reasonable 
     opportunity to comment on the proposed Program.
       ``(4) Included projects.--
       ``(A) In general.--A Program developed under this 
     subsection for a State shall include federally supported 
     surface transportation expenditures within the boundaries of 
     the State.
       ``(B) Listing of projects.--The Program shall cover a 
     minimum of 5 years, identify projects by year, be fiscally 
     constrained by year, and be updated not less than once every 
     5 years. An annual listing of projects for which funds have 
     been obligated in the preceding 5 years in each metropolitan 
     planning area shall be published or otherwise made available 
     by the cooperative effort of the State, transit operator, and 
     the metropolitan planning organization for public review. The 
     listing shall be consistent with the funding categories 
     identified in the first 5 years of each metropolitan 
     transportation plan.
       ``(C) Individual identification.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually.

[[Page 1193]]

       ``(D) Consistency with statewide transportation plan.--Each 
     project shall be--
       ``(i) consistent with the Plan developed under this section 
     for the State;
       ``(ii) identical to the project or phase of the project as 
     described in each year of the initial 5 years of an approved 
     metropolitan transportation plan; and
       ``(iii) in conformance with the applicable State air 
     quality implementation plan developed under the Clean Air Act 
     (42 U.S.C. 7401 et seq.), if the project is carried out in an 
     area designated as nonattainment for ozone or carbon monoxide 
     under that Act.
       ``(E) Requirement of anticipated full funding.--The Program 
     shall 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 Program may include a financial 
     plan that--
       ``(i) demonstrates how the approved Program can be 
     implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the Program;
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the adopted transportation 
     plan if reasonable additional resources beyond those 
     identified in the financial plan were available.
       ``(G) Selection of projects from illustrative list.--
       ``(i) No required selection.--Notwithstanding subparagraph 
     (F), a State shall not be required to select any project from 
     the illustrative list of additional projects 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 Program.
       ``(H) Priorities.--The Program shall reflect the priorities 
     for programming and expenditures of funds, including 
     transportation and transit enhancement activities, required 
     by title 23 and this chapter, and transportation control 
     measures included in the State's air quality implementation 
     plan.
       ``(5) Project selection for areas with populations of fewer 
     than 50,000 individuals.--
       ``(A) In general.--Projects carried out in areas with 
     populations of fewer than 50,000 individuals shall be 
     selected, from the approved Program (excluding projects 
     carried out under the National Highway System, the bridge 
     program, or the Interstate maintenance program under title 23 
     or sections 5310 and 5311 of this title), by the State in 
     cooperation with the affected nonmetropolitan local officials 
     with responsibility for transportation.
       ``(B) Certain programs.--Projects carried out in areas with 
     populations of fewer than 50,000 individuals under the 
     National Highway System, the bridge program, or the 
     Interstate maintenance program under title 23 or under 
     sections 5310 and 5311 of this title shall be selected, from 
     the approved Program, by the State in consultation with the 
     affected local officials with responsibility for 
     transportation.
       ``(6) Statewide transportation improvement program 
     approval.--A Program developed under this subsection shall be 
     reviewed and based on a current planning finding approved by 
     the Secretary not less frequently than once every 5 years.
       ``(7) Planning finding.--Not less frequently than once 
     every 5 years, the Secretary shall determine whether the 
     transportation planning process through which Plans and 
     Programs are developed are consistent with this section and 
     section 5303.
       ``(8) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved 
     Program in place of another project in the program.
       ``(h) Funding.--Funds set aside pursuant to section 104(i) 
     of title 23 and 5308 of this title shall be available to 
     carry out this section.
       ``(i) Treatment of Certain State Laws as Congestion 
     Management Systems.--For purposes of this section and section 
     5303, State laws, rules, or regulations pertaining to 
     congestion management systems or programs may constitute the 
     congestion management system under section 5303(i)(3) if the 
     Secretary determines that the State laws, rules, or 
     regulations are consistent with, and fulfill the intent of, 
     the purposes of section 5303.
       ``(j) Continuation of Current Review Practice.--Any 
     decision by the Secretary concerning a metropolitan or 
     statewide transportation plan or the Statewide Transportation 
     Improvement Program described in this section shall not be 
     considered to be a Federal action subject to review under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       ``(k) Integration of Planning and Environmental Studies.--
     Section 5303(o) shall also apply to the planning process 
     established under this section, except that the planning 
     factors to be considered shall be those set forth in 
     subsection (d).''.

     SEC. 3007. TRANSPORTATION MANAGEMENT AREAS.

       Section 5305 is repealed.

     SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

       Section 5306 is amended--
       (1) in subsection (a)--
       (A) by striking ``5305 of this title'' and inserting 
     ``5308''; and
       (B) by inserting ``, as determined by local policies, 
     criteria, and decision making,'' after ``feasible'';
       (2) in subsection (b) by striking ``5303-5305 of this 
     title'' and inserting ``5303, 5304, and 5308''; and
       (3) by adding at the end the following:
       ``(c) Regulations.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall issue regulations describing how the 
     requirements under this chapter relating to subsection (a) 
     shall be enforced.

     SEC. 3009. URBANIZED AREA FORMULA GRANTS.

       (a) Technical Amendments.--Section 5307 is amended--
       (1) by striking subsections (h), (j) and (k); and
       (2) by redesignating subsections (i), (l), (m), and (n) as 
     subsections (h), (i), (j), and (k), respectively.
       (b) Definitions.--Section 5307(a) is amended--
       (1) by amending paragraph (2)(A) to read as follows:
       ``(A) an entity designated, in accordance with the planning 
     process under sections 5303, 5304, and 5306, by the chief 
     executive officer of a State, responsible local officials, 
     and publicly owned operators of public transportation, to 
     receive and apportion amounts under sections 5336 and 5337 
     that are attributable to transportation management areas 
     designated under section 5303; or''; and
       (2) by adding at the end the following:
       ``(3) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, a nonprofit organization, or 
     a private operator of public transportation service that may 
     receive a Federal transit program grant indirectly through a 
     recipient, rather than directly from the Federal 
     Government.''.
       (c) General Authority.--Section 5307(b) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) In general.--The Secretary of Transportation may 
     award grants under this section for--
       ``(A) capital projects, including associated capital 
     maintenance items;
       ``(B) planning, including mobility management;
       ``(C) transit enhancements;
       ``(D) operating costs of equipment and facilities for use 
     in public transportation in an urbanized area with a 
     population of less than 200,000; and
       ``(E) operating costs of equipment and facilities for use 
     in public transportation in a portion or portions of an 
     urbanized area with a population of at least 200,000, but not 
     more than 225,000, if--
       ``(i) the urbanized area includes parts of more than one 
     State or Commonwealth;
       ``(ii) the portion of the urbanized area includes only one 
     State or Commonwealth;
       ``(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.'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) Special rule for fiscal years 2004 through 2006--
       ``(A) Increased flexibility.--The Secretary may award 
     grants under this section, from funds made available to carry 
     out this section for fiscal years 2004 through 2006, to 
     finance the operating cost of equipment and facilities for 
     use in mass transportation in an urbanized area with a 
     population of at least 200,000 as determined by the 2000 
     decennial census of population if--
       ``(i) the urbanized area had a population of less than 
     200,000, as determined by the 1990 decennial census of 
     population;
       ``(ii) a portion of the urbanized area was a separate 
     urbanized area with a population of less than 200,000, as 
     determined by the 1990 decennial census of population;
       ``(iii) the area was not designated as an urbanized area as 
     determined by the 1990 decennial census of population; and
       ``(iv) a portion of the area was not designated as an 
     urbanized area, as determined by the 1990 decennial census 
     and received assistance under section 5311 in fiscal year 
     2002.
       ``(B) Maximum amounts in fiscal year 2004.--In fiscal year 
     2004--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     the amount apportioned in fiscal year 2002 to the urbanized 
     area with a population of less than 200,000, as determined in 
     the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than the amount 
     apportioned to the urbanized area under this section for 
     fiscal year 2003; and

[[Page 1194]]

       ``(iii) each portion of any area not designated as an 
     urbanized area under the 1990 Federal decennial census and 
     eligible to receive funds under subparagraph (A)(iv) shall 
     receive an amount of funds made available to carry out this 
     section that is not less than the amount the portion of the 
     area received under section 5311 in fiscal year 2002.
       ``(C) Maximum amounts in fiscal year 2005.--In fiscal year 
     2005--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     50 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 50 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area under the 1990 decennial census and eligible 
     to receive funds under subparagraph (A)(iv) shall receive an 
     amount of funds made available to carry out this section that 
     is not less 50 percent of the amount the portion of the area 
     received under section 5311 in fiscal year 2002.
       ``(D) Maximum amounts in fiscal year 2006.--In fiscal year 
     2006--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     25 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000 as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 25 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area under the 1990 decennial census and eligible 
     to receive funds under subparagraph (A)(iv) shall receive an 
     amount of funds made available to carry out this section that 
     is not less than 25 percent of the amount the portion of the 
     area received under section 5311 in fiscal year 2002.''; and
       (3) by striking paragraph (4).
       (d) Public Participation Requirements.--Section 5307(c)(5) 
     is amended by striking ``section 5336'' and inserting 
     ``sections 5336 and 5337''.
       (e) Grant Recipient Requirements.--Section 5307(d)(1) is 
     amended--
       (1) in subparagraph (A), by inserting ``, including safety 
     and security aspects of the program'' after ``program'';
       (2) in subparagraph (E), by striking ``section'' and all 
     that follows and inserting ``section, the recipient will 
     comply with sections 5323 and 5325;'';
       (3) in subparagraph (H), by striking ``sections 5301(a) and 
     (d), 5303-5306, and 5310(a)-(d) of this title'' and inserting 
     ``subsections (a) and (d) of section 5301 and sections 5303 
     through 5306'';
       (4) in subparagraph (I) by striking ``and'' at the end;
       (5) in subparagraph (J), by striking the period at the end 
     and inserting ``; and''; and
       (6) by adding at the end the following:
       ``(K) if located in an urbanized area with a population of 
     not less than 200,000, will expend 1 percent of the amount 
     the recipient receives each fiscal year under this section 
     for transit enhancement activities described in section 
     5302(a)(15).''.
       (f) Government's Share of Costs.--Section 5307(e) is 
     amended--
       (1) by striking the first sentence and inserting the 
     following:
       ``(1) Capital projects.--A grant for a capital project 
     under this section shall cover 80 percent of the net project 
     cost.'';
       (2) by striking ``A grant for operating expenses'' and 
     inserting the following:
       ``(2) Operating expenses.--A grant for operating 
     expenses'';
       (3) by striking the fourth sentence and inserting the 
     following:
       ``(3) Remaining costs.--The remainder of the net project 
     cost shall be provided in cash from non-Federal sources or 
     revenues derived from the sale of advertising and concessions 
     and amounts received under a service agreement with a State 
     or local social service agency or a private social service 
     organization.''; and
       (4) by adding at the end the following: ``The prohibitions 
     on the use of funds for matching requirements under section 
     403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
     603(a)(5)(C)(vii)) shall not apply to the remainder.''.
       (g) Undertaking Projects in Advance.--Section 5307(g) is 
     amended by striking paragraph (4).
       (h) Relationship to Other Laws.--Section 5307(k), as 
     redesignated, is amended to read as follows:
       ``(k) Relationship to Other Laws.--
       ``(1) Applicable provisions.--Sections 5301, 5302, 5303, 
     5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 
     5330, 5331, 5332, 5333 and 5335 apply to this section and to 
     any grant made under this section.
       ``(2) Inapplicable provisions.--
       ``(A) In general.--Except as provided under this section, 
     no other provision of this chapter applies to this section or 
     to a grant made under this section.
       ``(B) Title 5.--The provision of assistance under this 
     chapter shall not be construed as bringing within the 
     application of chapter 15 of title 5, any nonsupervisory 
     employee of a public transportation system (or any other 
     agency or entity performing related functions) to which such 
     chapter is otherwise inapplicable.''.

     SEC. 3010. PLANNING PROGRAMS.

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

     ``Sec. 5308. Planning programs

       ``(a) Grants Authorized.--Under criteria established by the 
     Secretary, the Secretary may award grants to States, 
     authorities of the States, metropolitan planning 
     organizations, and local governmental authorities, make 
     agreements with other departments, agencies, or 
     instrumentalities of the Government, or enter into contracts 
     with private nonprofit or for-profit entities to--
       ``(1) develop transportation plans and programs;
       ``(2) plan, engineer, design, and evaluate a public 
     transportation project; and
       ``(3) conduct technical studies relating to public 
     transportation, including--
       ``(A) studies related to management, planning, operations, 
     capital requirements, and economic feasibility;
       ``(B) evaluations of previously financed projects;
       ``(C) peer reviews and exchanges of technical data, 
     information, assistance, and related activities in support of 
     planning and environmental analyses among metropolitan 
     planning organizations and other transportation planners; and
       ``(D) other similar and related activities preliminary to, 
     and in preparation for, constructing, acquiring, or improving 
     the operation of facilities and equipment.
       ``(b) Purpose.--To the extent practicable, the Secretary 
     shall ensure that amounts appropriated pursuant to section 
     5338 to carry out this section and sections 5303 through 5305 
     are used to support balanced and comprehensive transportation 
     planning that considers the relationships among land use and 
     all transportation modes, without regard to the programmatic 
     source of the planning amounts.
       ``(c) Metropolitan Planning Program.--
       ``(1) Allocations to States.--
       ``(A) In general.--The Secretary shall allocate 80 percent 
     of the amount made available under subsection (g)(3)(A) to 
     States to carry out sections 5303 and 5306 in a ratio equal 
     to the population in urbanized areas in each State, divided 
     by the total population in urbanized areas in all States, as 
     shown by the latest available decennial census of population.
       ``(B) Minimum allocation.--Each State shall receive not 
     less than 0.5 percent of the total amount allocated under 
     this paragraph.
       ``(2) Availability of funds.--A State receiving an 
     allocation under paragraph (1) shall promptly distribute such 
     funds to metropolitan planning organizations in the State 
     under a formula--
       ``(A) developed by the State in cooperation with the 
     metropolitan planning organizations;
       ``(B) approved by the Secretary of Transportation;
       ``(C) that considers population in urbanized areas; and
       ``(D) that provides an appropriate distribution for 
     urbanized areas to carry out the cooperative processes 
     described in this section.
       ``(3) Supplemental allocations.--
       ``(A) In general.--The Secretary shall allocate 20 percent 
     of the amount made available under subsection (g)(3)(A) to 
     States to supplement allocations made under paragraph (1) for 
     metropolitan planning organizations.
       ``(B) Allocation formula.--Amounts under this paragraph 
     shall be allocated under a formula that reflects the 
     additional cost of carrying out planning, programming, and 
     project selection responsibilities in complex metropolitan 
     planning areas under sections 5303 through 5306.
       ``(d) State Planning and Research Program.--
       ``(1) In general.--The amounts made available pursuant to 
     subsection (g)(3)(B) shall be allocated to States for grants 
     and contracts to carry out sections 5304, 5306, 5315, and 
     5322 so that each State receives an amount equal to the ratio 
     of the population in urbanized areas in that State, divided 
     by the total population in urbanized areas in all States, as 
     shown by the latest available decennial census.
       ``(2) Minimum allocation.--Each State shall receive not 
     less than 0.5 percent of the amount allocated under this 
     subsection.
       ``(3) Reallocation.--A State may authorize part of the 
     amount made available under this subsection to be used to 
     supplement amounts available under subsection (c).
       ``(e) Planning Capacity Building Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     Planning Capacity Building Program (referred to in this 
     subsection as the ``Program'') to support and fund innovative 
     practices and enhancements in transportation planning.
       ``(2) Purpose.--The purpose of the Program shall be to 
     promote activities that support

[[Page 1195]]

     and strengthen the planning processes required under this 
     section and sections 5303 and 5304.
       ``(3) Administration.--The Program shall be administered by 
     the Federal Transit Administration in cooperation with the 
     Federal Highway Administration.
       ``(4) Use of funds.--
       ``(A) In general.--Appropriations authorized under 
     subsection (g)(1) to carry out this subsection may be used--
       ``(i) to provide incentive grants to States, metropolitan 
     planning organizations, and public transportation operators; 
     and
       ``(ii) to conduct research, disseminate information, and 
     provide technical assistance.
       ``(B) Grants, contracts, cooperative agreements.--In 
     carrying out the activities described in paragraph (2)(B), 
     the Secretary may--
       ``(i) expend appropriated funds directly; or
       ``(ii) award grants to, or enter into contracts, 
     cooperative agreements, and other transactions, with a 
     Federal agency, State agency, local governmental authority, 
     association, nonprofit or for-profit entity, or institution 
     of higher education.
       ``(f) Government's Share of Costs.--Amounts made available 
     to carry out subsections (c), (d), and (e) may not exceed 80 
     percent of the costs of the activity unless the Secretary of 
     Transportation determines that it is in the interests of the 
     Government not to require a State or local match.
       ``(g) Allocation of Funds.--Of the amounts made available 
     under section 5338(b)(2)(B) for fiscal year 2005 and each 
     fiscal year thereafter to carry out this section--
       ``(1) $5,000,000 shall be allocated for the Planning 
     Capacity Building Program established under subsection (e);
       ``(2) $20,000,000 shall be allocated for grants under 
     subsection (a)(2) for alternatives analyses required by 
     section 5309(e)(2)(A); and
       ``(3) of the remaining amount--
       ``(A) 82.72 percent shall be allocated for the metropolitan 
     planning program described in subsection (d); and
       ``(B) 17.28 percent shall be allocated to carry out 
     subsection (b).
       ``(h) Reallocations.--Any amount allocated under this 
     section that has not been used 3 years after the end of the 
     fiscal year in which the amount was allocated shall be 
     reallocated among the States.''.
       (b) Conforming Amendment.--The item relating to section 
     5308 in the table of sections for chapter 53 is amended to 
     read as follows:

``5308. Planning programs.''.

     SEC. 3011. CAPITAL INVESTMENT PROGRAM.

       (a) Section Heading.--The section heading of section 5309 
     is amended to read as follows:

     ``Sec. 5309. Capital investment grants''.

       (b) General Authority.--Section 5309(a) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(1) The Secretary of Transportation may 
     make grants and loans'' and inserting the following:
       ``(1) Grants authorized.--The Secretary may award grants'';
       (B) in subparagraph (A), by striking ``alternatives 
     analysis related to the development of systems,'';
       (C) by striking subparagraphs (B), (C), (D), and (G);
       (D) by redesignating subparagraphs (E), (F), and (H) as 
     subparagraphs (B), (C), and (D), respectively;
       (E) in subparagraph (C), as redesignated, by striking the 
     semicolon at the end and inserting ``, including programs of 
     bus and bus-related projects for assistance to subrecipients 
     which are public agencies, private companies engaged in 
     public transportation, or private nonprofit organizations; 
     and''; and
       (F) in subparagraph (D), as redesignated--
       (i) by striking ``to support fixed guideway systems''; and
       (ii) by striking ``dedicated bus and high occupancy 
     vehicle'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) Grantee requirements.--
       ``(A) Grantee in an urbanized area.--The Secretary shall 
     require that any grants awarded under this section to a 
     recipient located in an urbanized area shall be subject to 
     all terms, conditions, requirements, and provisions that the 
     Secretary determines to be necessary or appropriate for the 
     purposes of this section, including requirements for the 
     disposition of net increases in the value of real property 
     resulting from the project assisted under this section.
       ``(B) Grantee not in an urbanized area.--The Secretary 
     shall require that any grants awarded under this section to a 
     recipient not located in an urbanized area shall be subject 
     to the same terms, conditions, requirements, and provisions 
     as a recipient or subrecipient of assistance under section 
     5311.
       ``(C) Subrecipient.--The Secretary shall require that any 
     private, nonprofit organization that is a subrecipient of a 
     grant awarded under this section shall be subject to the same 
     terms, conditions, requirements, and provisions as a 
     subrecipient of assistance under section 5310.''; and
       (3) by adding at the end the following:
       ``(3) Certification.--An applicant that has submitted the 
     certifications required under subparagraphs (A), (B), (C), 
     and (H) of section 5307(d)(1) shall be deemed to have 
     provided sufficient information upon which the Secretary may 
     make the findings required under this subsection.''.
       (c) Defined Term.--Section 5309(b) is amended to read as 
     follows:
       ``(b) Defined Term.--As used in this section, the term 
     `alternatives analysis' means a study conducted as part of 
     the transportation planning process required under sections 
     5303 and 5304, which includes--
       ``(1) an assessment of a wide range of public 
     transportation alternatives designed to address a 
     transportation problem in a corridor or subarea;
       ``(2) sufficient information to enable the Secretary to 
     make the findings of project justification and local 
     financial commitment required under this section;
       ``(3) the selection of a locally preferred alternative; and
       ``(4) the adoption of the locally preferred alternative as 
     part of the long-range transportation plan required under 
     section 5303.''.
       (d) Grant Requirements.--Section 5309(d) is amended to read 
     as follows:
       ``(d) Grant Requirements.--The Secretary may not approve a 
     grant for a project under this section unless the Secretary 
     determines that--
       ``(1) the project is part of an approved transportation 
     plan and program of projects required under sections 5303, 
     5304, and 5306; and
       ``(2) the applicant has, or will have--
       ``(A) the legal, financial, and technical capacity to carry 
     out the project (including safety and security aspects of the 
     project);
       ``(B) satisfactory continuing control over the use of the 
     equipment or facilities; and
       ``(C) the capability and willingness to maintain the 
     equipment or facilities.''.
       (e) Major Capital Investment Projects of $75,000,000 or 
     More.--Section 5309(e) is amended to read as follows:
       ``(e) Major Capital Investment Projects of $75,000,000 or 
     More.--
       ``(1) Full funding grant agreement.--The Secretary shall 
     enter into a full funding grant agreement, based on the 
     evaluations and ratings required under this subsection, with 
     each grantee receiving not less than $75,000,000 under this 
     subsection for a new fixed guideway capital project that--
       ``(A) is authorized for final design and construction; and
       ``(B) has been rated as medium, medium-high, or high, as 
     defined in this subsection.
       ``(2) Determinations.--The Secretary shall not award a 
     grant under this subsection for a major capital project 
     unless the Secretary determines that the proposed project 
     is--
       ``(A) based on the results of an alternatives analysis and 
     preliminary engineering;
       ``(B) justified based on a comprehensive review of its 
     mobility improvements, environmental benefits, cost-
     effectiveness, operating efficiencies, economic development 
     effects, and public transportation supportive land use 
     patterns and policies; and
       ``(C) supported by an acceptable degree of local financial 
     commitment, including evidence of stable and dependable 
     financing sources to construct the project, and maintain and 
     operate the entire public transportation system, while 
     ensuring that the extent and quality of existing public 
     transportation services are not degraded.
       ``(3) Evaluation of project justification.--In order to 
     make the determinations required under paragraph (2)(B) for a 
     major capital investment grant, the Secretary shall analyze, 
     evaluate, and consider--
       ``(A) the results of the alternatives analysis and 
     preliminary engineering for the proposed project;
       ``(B) the reliability of the forecasts of costs and 
     utilization made by the recipient and the contractors to the 
     recipient;
       ``(C) the direct and indirect costs of relevant 
     alternatives;
       ``(D) factors such as--
       ``(i) congestion relief;
       ``(ii) improved mobility;
       ``(iii) air pollution;
       ``(iv) noise pollution;
       ``(v) energy consumption; and
       ``(vi) all associated ancillary and mitigation costs 
     necessary to carry out each alternative analyzed;
       ``(E) reductions in local infrastructure costs achieved 
     through compact land use development;
       ``(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 
     appropriate to carry out this chapter.
       ``(4) Evaluation of local financial commitment.--
       ``(A) In general.--In evaluating a project under paragraph 
     (2)(C), the Secretary shall require that--
       ``(i) the proposed project plan provides for the 
     availability of contingency amounts that

[[Page 1196]]

     the Secretary determines to be reasonable to cover 
     unanticipated cost increases;
       ``(ii) each proposed local source of capital and operating 
     financing is stable, reliable, and available within the 
     proposed project timetable; and
       ``(iii) local resources are available to recapitalize and 
     operate the overall proposed public transportation system, 
     including essential feeder bus and other services necessary 
     to achieve the projected ridership levels, while ensuring 
     that the extent and quality of existing public transportation 
     services are not degraded.
       ``(B) Evaluation criteria.--In assessing the stability, 
     reliability, and availability of proposed sources of local 
     financing under paragraph (2)(C), the Secretary shall 
     consider--
       ``(i) the reliability of the forecasts of costs and 
     utilization made by the recipient and the contractors to the 
     recipient;
       ``(ii) existing grant commitments;
       ``(iii) the degree to which financing sources are dedicated 
     to the proposed purposes;
       ``(iv) any debt obligation that exists, or is proposed by 
     the recipient, for the proposed project or other public 
     transportation purpose; and
       ``(v) the extent to which the project has a local financial 
     commitment that exceeds the required non-Federal share of the 
     cost of the project, provided that if the Secretary gives 
     priority to financing projects that include more than the 
     non-Federal share required under subsection (h), the 
     Secretary shall give equal consideration to differences in 
     the fiscal capacity of State and local governments.
       ``(5) Project advancement and ratings.--
       ``(A) Project advancement.--A proposed project under this 
     subsection shall not advance from alternatives analysis to 
     preliminary engineering or from preliminary engineering to 
     final design and construction unless the Secretary determines 
     that the project meets the requirements of this section and 
     there is a reasonable likelihood that the project will 
     continue to meet such requirements.
       ``(B) Ratings.--In making a determination under 
     subparagraph (A), the Secretary shall evaluate and rate the 
     project on a 5-point scale (high, medium-high, medium, 
     medium-low, or low) based on the results of the alternatives 
     analysis, the project justification criteria, and the degree 
     of local financial commitment, as required under this 
     subsection. In rating the projects, the Secretary shall 
     provide, in addition to the overall project rating, 
     individual ratings for each of the criteria established by 
     regulation.
       ``(6) Applicability.--This subsection shall not apply to 
     projects for which the Secretary has issued a letter of 
     intent or entered into a full funding grant agreement before 
     the date of enactment of the Federal Public Transportation 
     Act of 2004.
       ``(7) Rulemaking.--Not later than 240 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Secretary shall issue regulations on the manner by 
     which the Secretary shall evaluate and rate projects based on 
     the results of alternatives analysis, project justification, 
     and local financial commitment, in accordance with this 
     subsection.
       ``(8) Policy guidance.--
       ``(A) Publication.--The Secretary shall publish policy 
     guidance regarding the new starts project review and 
     evaluation process--
       ``(i) not later than 120 days after the date of enactment 
     of the Federal Public Transportation Act of 2004; and
       ``(ii) each time significant changes are made by the 
     Secretary to the new starts project review and evaluation 
     process and criteria, but not less frequently than once every 
     2 years.
       ``(B) Public comment and response.--The Secretary shall--
       ``(i) invite public comment to the guidance published under 
     subparagraph (A); and
       ``(ii) publish a response to the comments received under 
     clause (i).''.
       (f) Major Capital Investment Projects Less Than 
     $75,000,000.--Section 5309(f) is amended to read as follows:
       ``(f) Major Capital Investment Projects Less than 
     $75,000,000.--
       ``(1) Project construction grant agreement.--
       ``(A) In general.--The Secretary shall enter into a project 
     construction grant agreement, based on evaluations and 
     ratings required under this subsection, with each grantee 
     receiving less than $75,000,000 under this subsection for a 
     new fixed guideway or corridor improvement capital project 
     that--
       ``(i) is authorized by law; and
       ``(ii) has been rated as medium, medium-high, or high, in 
     accordance with paragraph (3).
       ``(B) Contents.--
       ``(i) In general.--An agreement under this paragraph shall 
     specify--

       ``(I) the scope of the project to be constructed;
       ``(II) the estimated net cost of the project;
       ``(III) the schedule under which the project shall be 
     constructed;
       ``(IV) the maximum amount of funding to be obtained under 
     this subsection;
       ``(V) the proposed schedule for obligation of future 
     Federal grants; and
       ``(VI) the sources of non-Federal funding.

       ``(ii) Additional funding.--The agreement may include a 
     commitment on the part of the Secretary to provide funding 
     for the project in future fiscal years.
       ``(C) Full funding grant agreement.--An agreement under 
     this paragraph shall be considered a full funding grant 
     agreement for the purposes of subsection (g).
       ``(2) Selection process.--
       ``(A) Selection criteria.--The Secretary may provide 
     financial assistance under this subsection for a proposed 
     project only if the Secretary determines that the project 
     is--
       ``(i) based on the results of planning and alternatives 
     analysis;
       ``(ii) justified based on a review of its public 
     transportation supportive land use policies, cost 
     effectiveness, and effect on local economic development; and
       ``(iii) supported by an acceptable degree of local 
     financial commitment.
       ``(B) Planning and alternatives.--In evaluating a project 
     under subparagraph (A)(i), the Secretary shall analyze and 
     consider the results of planning and alternatives analysis 
     for the project.
       ``(C) Project justification.--For purposes of making the 
     determination under paragraph (A)(ii), the Secretary shall--
       ``(i) determine the degree to which local land use policies 
     are supportive of the public transportation project and the 
     degree to which the project is likely to achieve local 
     developmental goals;
       ``(ii) determine the cost effectiveness of the project at 
     the time of the initiation of revenue service;
       ``(iii) determine the degree to which the project will have 
     a positive effect on local economic development;
       ``(iv) consider the reliability of the forecasts of costs 
     and ridership associated with the project; and
       ``(v) consider other factors that the Secretary determines 
     appropriate to carry out this subsection.
       ``(D) Local financial commitment.--For purposes of 
     subparagraph (A)(iii), the Secretary shall require that each 
     proposed local source of capital and operating financing is 
     stable, reliable, and available within the proposed project 
     timetable.
       ``(3) Advancement of project to development and 
     construction.--
       ``(A) In general.--A proposed project under this subsection 
     may advance from the planning and alternatives analysis stage 
     to project development and construction only if--
       ``(i) the Secretary finds that the project meets the 
     requirements of this subsection and there is a reasonable 
     likelihood that the project will continue to meet such 
     requirements; and
       ``(ii) the metropolitan planning organization has adopted 
     the locally preferred alternative for the project into the 
     long-range transportation plan.
       ``(B) Evaluation.--In making the findings under 
     subparagraph (A), the Secretary shall evaluate and rate the 
     project as `high', `medium-high', `medium', `medium-low', or 
     `low' based on the results of the analysis of the project 
     justification criteria and the degree of local financial 
     commitment, as required by this subsection.
       ``(4) Impact report.--
       ``(A) In general.--Not later than 240 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Federal Transit Administration shall submit a 
     report on the methodology to be used in evaluating the land 
     use and economic development impacts of non-fixed guideway or 
     partial fixed guideway projects to--
       ``(i) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(ii) the Committee on Transportation and Infrastructure 
     of the House of Representatives.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall address any qualitative and quantitative 
     differences between fixed guideway and non-fixed guideway 
     projects with respect to land use and economic development 
     impacts.
       ``(5) Regulations.--Not later than 120 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Secretary shall issue regulations establishing an 
     evaluation and rating process for proposed projects under 
     this subsection that is based on the results of project 
     justification and local financial commitment, as required 
     under this subsection.''.
       (g) Full Funding Grant Agreements.--Section 5309(g)(2) is 
     amended by adding at the end the following:
       ``(C) Before and after study.--
       ``(i) In general.--Each full funding grant agreement shall 
     require the applicant to conduct a study that--
       ``(I) describes and analyzes the impacts of the new start 
     project on transit services and transit ridership;
       ``(II) evaluates the consistency of predicted and actual 
     project characteristics and performance; and
       ``(III) identifies sources of differences between predicted 
     and actual outcomes.
       ``(ii) Information collection and analysis plan.--
       ``(I) Submission of plan.--Applicants seeking a full 
     funding grant agreement shall submit a complete plan for the 
     collection and

[[Page 1197]]

     analysis of information to identify the impacts of the new 
     start project and the accuracy of the forecasts prepared 
     during development of the project. Preparation of this plan 
     shall be included in the full funding grant agreement as an 
     eligible activity.
       ``(II) Contents of plan.--The plan submitted under 
     subclause (I) shall provide for--
       ``(aa) the collection of data on the current transit system 
     regarding transit service levels and ridership patterns, 
     including origins and destinations, access modes, trip 
     purposes, and rider characteristics;
       ``(bb) documentation of the predicted scope, service 
     levels, capital costs, operating costs, and ridership of the 
     project;
       ``(cc) collection of data on the transit system 2 years 
     after the opening of the new start project, including 
     analogous information on transit service levels and ridership 
     patterns and information on the as-built scope and capital 
     costs of the new start project; and
       ``(dd) analysis of the consistency of predicted project 
     characteristics with the after data.
       ``(D) Collection of data on current system.--To be eligible 
     for a full funding grant agreement, recipients shall have 
     collected data on the current system, according to the plan 
     required, before the beginning of construction of the 
     proposed new start project. Collection of this data shall be 
     included in the full funding grant agreement as an eligible 
     activity.
       ``(E) Public private partnership pilot program.--
       ``(i) Authorization.--The Secretary may establish a pilot 
     program to demonstrate the advantages of public-private 
     partnerships for certain fixed guideway systems development 
     projects.
       ``(ii) Identification of qualified projects.--The Secretary 
     shall identify qualified public-private partnership projects 
     as permitted by applicable State and local enabling laws and 
     work with project sponsors to enhance project delivery and 
     reduce overall costs.''.
       (h) Federal Share of Net Project Cost.--Section 5309(h) is 
     amended to read as follows:
       ``(h) Federal Share of Adjusted Net Project Cost.--
       ``(1) In general.--The Secretary shall estimate the Federal 
     share of the net project cost based on engineering studies, 
     studies of economic feasibility, and information on the 
     expected use of equipment or facilities.
       ``(2) Adjustment for completion under budget.--The 
     Secretary may adjust the final net project cost of a major 
     capital investment project evaluated under subsections (e) 
     and (f) to include the cost of eligible activities not 
     included in the originally defined project if the Secretary 
     determines that the originally defined project has been 
     completed at a cost that is significantly below the original 
     estimate.
       ``(3) Maximum federal share.--
       ``(A) In general.--A grant for the project shall be for 80 
     percent of the net project cost, or the net project cost as 
     adjusted under paragraph (2), unless the grant recipient 
     requests a lower grant percentage.
       ``(B) Exceptions.--The Secretary may provide a higher grant 
     percentage than requested by the grant recipient if--
       ``(i) the Secretary determines that the net project cost of 
     the project is not more than 10 percent higher than the net 
     project cost estimated at the time the project was approved 
     for advancement into preliminary engineering; and
       ``(ii) the ridership estimated for the project is not less 
     than 90 percent of the ridership estimated for the project at 
     the time the project was approved for advancement into 
     preliminary engineering.
       ``(4) Other sources.--The costs not funded by a grant under 
     this section may be funded from--
       ``(A) an undistributed cash surplus;
       ``(B) a replacement or depreciation cash fund or reserve; 
     or
       ``(C) new capital, including any Federal funds that are 
     eligible to be expended for transportation.
       ``(5) Planned extension to fixed guideway system.--In 
     addition to amounts allowed under paragraph (1), a planned 
     extension to a fixed guideway system may include the cost of 
     rolling stock previously purchased if the Secretary 
     determines that only non-Federal funds were used and that the 
     purchase was made for use on the extension. A refund or 
     reduction of the remainder may be made only if a refund of a 
     proportional amount of the grant is made at the same time.
       ``(6) Exception.--The prohibitions on the use of funds for 
     matching requirements under section 403(a)(5)(C)(vii) of the 
     Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not 
     apply to amounts allowed under paragraph (4).''.
       (i) Loan Provisions and Fiscal Capacity Considerations.--
     Section 5309 is amended--
       (1) by striking subsections (i), (j), (k), and (l);
       (2) by redesignating subsections (m) and (n) as subsections 
     (i) and (j), respectively;
       (3) by striking subsection (o) (as added by section 3009(i) 
     of the Federal Transit Act of 1998); and
       (4) by redesignating subsections (o) and (p) as subsections 
     (k) and (l), respectively.
       (j) Allocating Amounts.--Section 5309(i), as redesignated, 
     is amended to read as follows:
       ``(i) Allocating Amounts.--
       ``(1) Fiscal year 2004.--Of the amounts made available or 
     appropriated for fiscal year 2004 under section 5338(a)(3)--
       ``(A) $1,315,983,615 shall be allocated for projects of not 
     less than $75,000,000 for major capital projects for new 
     fixed guideway systems and extensions of such systems under 
     subsection (e) and new major corridor improvements under 
     subsection (f);
       ``(B) $1,199,387,615 shall be allocated for capital 
     projects for fixed guideway modernization; and
       ``(C) $673,204,520 shall be allocated for capital projects 
     for buses and bus-related equipment and facilities.
       ``(2) In general.--Of the amounts made available or 
     appropriated for fiscal year 2005 and each fiscal year 
     thereafter for grants under this section pursuant to 
     subsections (b)(4) and (c) of section 5338--
       ``(A) the amounts appropriated under section 5338(c) shall 
     be allocated for major capital projects for--
       ``(i) new fixed guideway systems and extensions of not less 
     than $75,000,000, in accordance with subsection (e); and
       ``(ii) new major capital projects for corridor 
     improvements, in accordance with subsection (f); and
       ``(B) the amounts made available under section 5338(b)(4) 
     shall be allocated for capital projects for buses and bus-
     related equipment and facilities.
       ``(3) Fixed guideway modernization.--The amounts made 
     available for fixed guideway modernization under section 
     5338(b)(2)(K) for fiscal year 2005 and each fiscal year 
     thereafter shall be allocated in accordance with section 
     5337.
       ``(4) New fixed guideway systems and corridor 
     improvements.--Not more that 8 percent of the allocation 
     described in paragraphs (1)(A) and (2)(A) may be expended on 
     preliminary engineering.
       ``(5) Funding for ferry boats.--Of the amounts described in 
     paragraphs (1)(A) and (2)(A), $10,400,000 shall be available 
     in each of the fiscal years 2004 through 2009 for capital 
     projects in Alaska and Hawaii for new fixed guideway systems 
     and extension projects utilizing ferry boats, ferry boat 
     terminals, or approaches to ferry boat terminals.
       ``(6) Bus and bus facility grants.--
       ``(A) Considerations.--In making grants under paragraphs 
     (1)(C) and (2)(B), the Secretary shall consider the age and 
     condition of buses, bus fleets, related equipment, and bus-
     related facilities.
       ``(B) Projects not in urbanized areas.--Of the amounts made 
     available under paragraphs (1)(C) and (2)(B), not less than 
     5.5 percent shall be available in each fiscal year for 
     projects that are not in urbanized areas.
       ``(C) Intermodal terminals.--Of the amounts made available 
     under paragraphs (1)(C) and (2)(B), not less than $75,000,000 
     shall be available in each fiscal year for intermodal 
     terminal projects, including the intercity bus portion of 
     such projects.''.
       (k) Reports.--Section 5309 is amended by inserting at the 
     end the following:
       ``(m) Reports.--
       ``(1) Annual report on funding recommendations.--
       ``(A) In general.--Not later than the first Monday of 
     February of each year, the Secretary shall submit a report on 
     funding recommendations to--
       ``(i) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(ii) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(iii) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(iv) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall contain--
       ``(i) a proposal on the allocation of amounts to finance 
     grants for capital investment projects among grant 
     applicants;
       ``(ii) a recommendation of projects to be funded based on--

       ``(I) the evaluations and ratings determined under 
     subsection (e); and
       ``(II) existing commitments and anticipated funding levels 
     for the subsequent 3 fiscal years; and

       ``(iii) detailed ratings and evaluations on each project 
     recommended for funding.
       ``(2) Triennial reports on project ratings.--
       ``(A) In general.--Not later than the first Monday of 
     February, the first Monday of June, and the first Monday of 
     October of each year, the Secretary shall submit a report on 
     project ratings to--
       ``(i) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(ii) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(iii) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(iv) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.

[[Page 1198]]

       ``(B) Contents.--Each report submitted under subparagraph 
     (A) shall contain--
       ``(i) a summary of the ratings of all capital investment 
     projects for which funding was requested under this section;
       ``(ii) detailed ratings and evaluations on the project of 
     each applicant that had significant changes to the finance or 
     project proposal or has completed alternatives or preliminary 
     engineering since the date of the latest report; and
       ``(iii) all relevant information supporting the evaluation 
     and rating of each updated project, including a summary of 
     the financial plan of each updated project.
       ``(3) Before and after study reports.--Not later than the 
     first Monday of August of each year, the Secretary shall 
     submit a report containing a summary of the results of the 
     studies conducted under subsection (g)(2) to--
       ``(A) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(B) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(C) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(D) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(4) Contractor performance assessment report.--
       ``(A) In general.--Not later than 180 days after the 
     enactment of the Federal Public Transportation Act of 2004, 
     and each year thereafter, the Secretary shall submit a report 
     analyzing the consistency and accuracy of cost and ridership 
     estimates made by each contractor to public transportation 
     agencies developing major investment projects to the 
     committees and subcommittees listed under paragraph (3).
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall compare the cost and ridership estimates made at 
     the time projects are approved for entrance into preliminary 
     engineering with--
       ``(i) estimates made at the time projects are approved for 
     entrance into final design;
       ``(ii) costs and ridership when the project commences 
     revenue operation; and
       ``(iii) costs and ridership when the project has been in 
     operation for 2 years.
       ``(5) Annual general accounting office review.--
       ``(A) Review.--The Comptroller General of the United States 
     shall conduct an annual review of the processes and 
     procedures for evaluating and rating projects and 
     recommending projects and the Secretary's implementation of 
     such processes and procedures.
       ``(B) Report.--Not later than 90 days after the submission 
     of each report required under paragraph (3), the Comptroller 
     General shall submit a report to Congress that summarizes the 
     results of the review conducted under subparagraph (A).
       ``(6) Contractor performance incentive report.--Not later 
     than 180 days after the enactment of the Federal Public 
     Transportation Act of 2004, the Secretary shall submit a 
     report to the committees and subcommittees listed under 
     paragraph (3) on the suitability of allowing contractors to 
     public transportation agencies that undertake major capital 
     investments under this section to receive performance 
     incentive awards if a project is completed for less than the 
     original estimated cost.''.

     SEC. 3012. NEW FREEDOM FOR ELDERLY PERSONS AND PERSONS WITH 
                   DISABILITIES.

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

     ``Sec. 5310. New freedom for elderly persons and persons with 
       disabilities

       ``(a) General Authority.--
       ``(1) Authorization.--The Secretary may award grants to a 
     State for capital public transportation projects that are 
     planned, designed, and carried out to meet the needs of 
     elderly individuals and individuals with disabilities, with 
     priority given to the needs of these individuals to access 
     necessary health care.
       ``(2) Acquisition of public transportation services.--A 
     capital public transportation project under this section may 
     include acquiring public transportation services as an 
     eligible capital expense.
       ``(3) Administrative costs.--A State may use not more than 
     15 percent of the amounts received under this section to 
     administer, plan, and provide technical assistance for a 
     project funded under this section.
       ``(b) Allotments Among States.--
       ``(1) In general.--From amounts made available or 
     appropriated in each fiscal year under subsections 
     (a)(1)(C)(iv) and (b)(2)(D) of section 5338 for grants under 
     this section, the Secretary shall allot amounts to each State 
     under a formula based on the number of elderly individuals 
     and individuals with disabilities in each State.
       ``(2) Transfer of funds.--Any funds allotted to a State 
     under paragraph (1) may be transferred by the State to the 
     apportionments made under sections 5311(c) and 5336 if such 
     funds are only used for eligible projects selected under this 
     section.
       ``(3) Reallocation of funds.--A State receiving a grant 
     under this section may reallocate such grant funds to--
       ``(A) a private nonprofit organization;
       ``(B) a public transportation agency or authority; or
       ``(C) a governmental authority that--
       ``(i) has been approved by the State to coordinate services 
     for elderly individuals and individuals with disabilities;
       ``(ii) certifies that nonprofit organizations are not 
     readily available in the area that can provide the services 
     described under this subsection; or
       ``(iii) will provide services to persons with disabilities 
     that exceed those services required by the Americans with 
     Disabilities Act.
       ``(c) Federal Share.--
       ``(1) Maximum.--
       ``(A) In general.--A grant for a capital project under this 
     section may not exceed 80 percent of the net capital costs of 
     the project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(b)(1) of 
     title 23 shall receive an increased Federal share in 
     accordance with the formula under that section.
       ``(2) Remaining costs.--The costs of a capital project 
     under this section that are not funded through a grant under 
     this section--
       ``(A) may be funded from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to any Federal agency (other than the Department of 
     Transportation, except for Federal Lands Highway funds) that 
     are eligible to be expended for transportation.
       ``(3) Exception.--For purposes of paragraph (2), the 
     prohibitions on the use of funds for matching requirements 
     under section 403(a)(5)(C)(vii) of the Social Security Act 
     (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or 
     State funds to be used for transportation purposes.
       ``(d) Grant Requirements.--
       ``(1) In general.--A grant recipient under this section 
     shall be subject to the requirements of a grant recipient 
     under section 5307 to the extent the Secretary determines to 
     be appropriate.
       ``(2) Certification requirements.--
       ``(A) Fund transfers.--A grant recipient under this section 
     that transfers funds to a project funded under section 5336 
     in accordance with subsection (b)(2) shall certify that the 
     project for which the funds are requested has been 
     coordinated with private nonprofit providers of services 
     under this section.
       ``(B) Project selection and plan development.--Each grant 
     recipient under this section shall certify that--
       ``(i) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       ``(ii) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.
       ``(C) Allocations to subrecipients.--Each grant recipient 
     under this section shall certify that allocations of the 
     grant to subrecipients, if any, are distributed on a fair and 
     equitable basis.
       ``(e) State Program of Projects.--
       ``(1) Submission to secretary.--Each State shall annually 
     submit a program of transportation projects to the Secretary 
     for approval with an assurance that the program provides for 
     maximum feasible coordination between transportation services 
     funded under this section and transportation services 
     assisted by other Federal sources.
       ``(2) Use of funds.--Each State may use amounts made 
     available to carry out this section to provide transportation 
     services for elderly individuals and individuals with 
     disabilities if such services are included in an approved 
     State program of projects.
       ``(f) Leasing Vehicles.--Vehicles acquired under this 
     section may be leased to local governmental authorities to 
     improve transportation services designed to meet the needs of 
     elderly individuals and individuals with disabilities.
       ``(g) Meal Delivery for Homebound Individuals.--Public 
     transportation service providers receiving assistance under 
     this section or section 5311(c) may coordinate and assist in 
     regularly providing meal delivery service for homebound 
     individuals if the delivery service does not conflict with 
     providing public transportation service or reduce service to 
     public transportation passengers.
       ``(h) Transfers of Facilities and Equipment.--With the 
     consent of the recipient in possession of a facility or 
     equipment acquired with a grant under this section, a State 
     may transfer the facility or equipment to any recipient 
     eligible to receive assistance under this chapter if the 
     facility or equipment will continue to be used as required 
     under this section.
       ``(i) Fares Not Required.--This section does not require 
     that elderly individuals and individuals with disabilities be 
     charged a fare.''.
       (b) Conforming Amendment.--The item relating to section 
     5310 in the table of sections for chapter 53 is amended to 
     read as follows:


[[Page 1199]]


``5310. New freedom for elderly persons and persons with 
              disabilities.''.

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

       (a) Definitions.--Section 5311(a) is amended to read as 
     follows:
       ``(a) Definitions.--As used in this section, the following 
     definitions shall apply:
       ``(1) Recipient.--The term `recipient' means a State that 
     receives a Federal transit program grant directly from the 
     Federal Government.
       ``(2) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, a nonprofit organization, or 
     a private operator of public transportation service that 
     receives Federal transit program grant funds indirectly 
     through a recipient.''.
       (b) General Authority.--Section 5311(b) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) Grants authorized.--Except as provided under 
     paragraph (2), the Secretary may award grants under this 
     section to recipients located in areas other than urbanized 
     areas for--
       ``(A) public transportation capital projects;
       ``(B) operating costs of equipment and facilities for use 
     in public transportation; and
       ``(C) the acquisition of public transportation services.'';
       (2) by redesignating paragraph (2) as paragraph (3);
       (3) by inserting after paragraph (1) the following:
       ``(2) State program.--
       ``(A) In general.--A project eligible for a grant under 
     this section shall be included in a State program for public 
     transportation service projects, including agreements with 
     private providers of public transportation service.
       ``(B) Submission to secretary.--Each State shall annually 
     submit the program described in subparagraph (A) to the 
     Secretary.
       ``(C) Approval.--The Secretary may not approve the program 
     unless the Secretary determines that--
       ``(i) the program provides a fair distribution of amounts 
     in the State;
       ``(ii) the program provides the maximum feasible 
     coordination of public transportation service assisted under 
     this section with transportation service assisted by other 
     Federal sources; and
       ``(iii) amounts provided for projects on Indian 
     reservations are not less than amounts attributable to the 
     population and land area of Indian reservations in the State, 
     as published under subsection (c)(5).'';
       (4) in paragraph (3), as redesignated--
       (A) by striking ``(3) The Secretary of Transportation'' and 
     inserting the following:
       ``(3) Rural transportation assistance program.--
       ``(A) Establishment.--The Secretary'';
       (B) by striking ``make'' and inserting ``use not more than 
     2 percent of the amount made available to carry out this 
     section to award''; and
       (C) by adding at the end the following:
       ``(B) Data Collection.--
       ``(i) Report.--Each grantee under this section shall submit 
     an annual report to the Secretary containing information on 
     capital investment, operations, and service provided with 
     funds received under this section, including--

       ``(I) total annual revenue;
       ``(II) sources of revenue;
       ``(III) total annual operating costs;
       ``(IV) total annual capital costs;
       ``(V) fleet size and type, and related facilities;
       ``(VI) revenue vehicle miles; and
       ``(VII) ridership.''; and

       (5) by adding after paragraph (3) the following:
       ``(4) Of the amount made available to carry out paragraph 
     (3)--
       ``(A) not more than 15 percent may be used to carry out 
     projects of a national scope; and
       ``(B) any amounts not used under subparagraph (A) shall be 
     allocated to the States.''.
       (c) Apportionments.--Section 5311(c) is amended to read as 
     follows:
       ``(c) Apportionments.--
       ``(1) In general.--Of the amounts made available or 
     appropriated for each fiscal year pursuant to subsections 
     (a)(1)(C)(v) and (b)(2)(F) of section 5338--
       ``(A) 20 percent shall be apportioned to the States in 
     accordance with paragraph (2); and
       ``(B) 80 percent shall be apportioned to the States in 
     accordance with paragraph (3).
       ``(2) 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 (1)(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.
       ``(3) Apportionments based on population in nonurbanized 
     areas.--Each State shall receive an amount equal to the 
     amount apportioned under paragraph (1)(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.
       ``(4) Publication of apportionments.--The Secretary shall 
     publish the total amount apportioned to each State under this 
     subsection and the amounts attributable to the population and 
     land area to Indian reservation in each State.''.
       (d) Use for Administrative, Planning, and Technical 
     Assistance.--Section 5311(e) is amended--
       (1) by striking ``and Technical Assistance.--(1) The 
     Secretary of Transportation'' and inserting ``, Planning, and 
     Technical Assistance.--The Secretary'';
       (2) by striking ``to a recipient''; and
       (3) by striking paragraph (2).
       (e) Intercity Bus Transportation.--Section 5311(f) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``(1)'' and inserting the following:
       ``(1) In general.--''; and
       (B) by striking ``after September 30, 1993,''; and
       (2) in paragraph (2)--
       (A) by striking ``A State'' and inserting ``After 
     consultation with affected intercity bus service providers, a 
     State''; and
       (B) by striking ``of Transportation''.
       (f) Federal Share of Costs.--Section 5311(g) is amended to 
     read as follows:
       ``(g) Federal Share of Costs.--
       ``(1) Maximum federal share.--
       ``(A) Capital projects.--
       ``(i) In general.--Except as provided under clause (ii), a 
     grant awarded under this section for any purpose other than 
     operating assistance may not exceed 80 percent of the net 
     capital costs of the project, as determined by the Secretary.
       ``(ii) Exception.--A State described in section 120(b)(1) 
     of title 23 shall receive a Federal share of the net capital 
     costs in accordance with the formula under that section.
       ``(B) Operating assistance.--
       ``(i) In general.--Except as provided under clause (ii), a 
     grant made under this section for operating assistance may 
     not exceed 50 percent of the net operating costs of the 
     project, as determined by the Secretary.
       ``(ii) Exception.--A State described in section 120(b)(1) 
     of title 23 shall receive a Federal share of the net 
     operating costs equal to 62.5 percent of the Federal share 
     provided for under subparagraph (A)(ii).
       ``(2) Other funding sources.--Funds for a project under 
     this section that are not provided for by a grant under this 
     section--
       ``(A) may be provided from--
       ``(i) an undistributed cash surplus;
       ``(ii) a replacement or depreciation cash fund or reserve;
       ``(iii) a service agreement with a State or local social 
     service agency or a private social service organization; or
       ``(iv) new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to a Federal agency (other than the Department of 
     Transportation, except for Federal Land Highway funds) that 
     are eligible to be expended for transportation.
       ``(3) Use of federal grant.--A State carrying out a program 
     of operating assistance under this section may not limit the 
     level or extent of use of the Federal grant for the payment 
     of operating expenses.
       ``(4) Exception.--For purposes of paragraph (2)(B), the 
     prohibitions on the use of funds for matching requirements 
     under section 403(a)(5)(c)(vii) of the Social Security Act 
     (42 U.S.C. 603(a)(5)(c)(vii)) shall not apply to Federal or 
     State funds to be used for transportation purposes.''.
       (g) Waiver Condition.--Section 5311(j)(1) is amended by 
     striking ``but the Secretary of Labor may waive the 
     application of section 5333(b)'' and inserting ``if the 
     Secretary of Labor utilizes a Special Warranty that provides 
     a fair and equitable arrangement to protect the interests of 
     employees''.

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

       (a) In General.--Section 5312 is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Research, Development, and Demonstration Projects.--
       ``(1) In general.--The Secretary may make grants, 
     contracts, cooperative agreements, or other transactions 
     (including agreements with departments, agencies, and 
     instrumentalities of the United States Government) for 
     research, development, demonstration or deployment projects, 
     or evaluation of technology of national significance to 
     public transportation that the Secretary determines will 
     improve public transportation service or help public 
     transportation service meet the total transportation needs at 
     a minimum cost.
       ``(2) Information.--The Secretary may request and receive 
     appropriate information from any source.
       ``(3) Savings provision.--This subsection does not limit 
     the authority of the Secretary under any other law.'';
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsections (d) and (e) as (b) and 
     (c), respectively.
       (4) in subsection (b), as redesignated--

[[Page 1200]]

       (A) in paragraph (2), by striking ``other agreements'' and 
     inserting ``other transactions''; and
       (B) in paragraph (5), by striking ``within the Mass Transit 
     Account of the Highway Trust Fund''; and
       (5) in subsection (c), as redesignated--
       (A) in paragraph (2), by striking ``public and private'' 
     and inserting ``public or private''; and
       (B) in paragraph (3), by striking ``within the Mass Transit 
     Account of the Highway Trust Fund'' .
       (b) Conforming Amendments.--
       (1) Section heading.--The heading of section 5312 is 
     amended to read as follows:

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

       (2) Table of sections.--The item relating to section 5312 
     in the table of sections for chapter 53 is amended to read as 
     follows:

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

     SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM.

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

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

       (2) Table of sections.--The item relating to section 5313 
     in the table of sections for chapter 53 is amended to read as 
     follows:

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

     SEC. 3016. NATIONAL RESEARCH PROGRAMS.

       (a) In General.--Section 5314 is amended--
       (1) in subsection (a)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Availability of funds.--The Secretary may use amounts 
     made available under subsections (a)(5)(C)(iv) and 
     (b)(2)(G)(iv) of section 5338 for grants, contracts, 
     cooperative agreements, or other transactions for the 
     purposes described in sections 5312, 5315, and 5322.'';
       (B) in paragraph (2), by striking ``(2) Of'' and inserting 
     the following:
       ``(2) ADA compliance.--From'';
       (C) by amending paragraph (3) to read as follows:
       ``(3) Special demonstration initiatives.--The Secretary may 
     use not more than 25 percent of the amounts made available 
     under paragraph (1) for special demonstration initiatives, 
     subject to terms that the Secretary determines to be 
     consistent with this chapter. For a nonrenewable grant of not 
     more than $100,000, the Secretary shall provide expedited 
     procedures for complying with the requirements of this 
     chapter.''; and
       (D) in paragraph (4)--
       (i) by striking subparagraph (B); and
       (ii) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (2) by amending subsection (b) to read as follows:
       ``(b) Federal Share.--If there would be a clear and direct 
     financial benefit to an entity under a grant, contract, 
     cooperative agreement, or other transaction financed under 
     subsection (a) or section 5312, 5313, 5315, or 5322, the 
     Secretary shall establish a Federal share consistent with 
     such benefit.''.
       (b) Conforming Amendments.--
       (1) Section heading.--The heading for section 5314 is 
     amended to read as follows:

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

       (2) Table of sections.--The item relating to section 5314 
     in the table of sections for chapter 53 is amended to read as 
     follows:

  ``5314. National research programs.''.

     SEC. 3017. NATIONAL TRANSIT INSTITUTE.

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

     SEC. 3018. BUS TESTING FACILITY.

       Section 5318 is repealed.

     SEC. 3019. BICYCLE FACILITIES.

       Section 5319 is amended by striking ``5307(k)'' and 
     inserting ``5307(d)(1)(K)''.

     SEC. 3020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

       Section 5320 is repealed.

     SEC. 3021. CRIME PREVENTION AND SECURITY.

       Section 5321 is repealed.

     SEC. 3022. GENERAL PROVISIONS ON ASSISTANCE.

       Section 5323 is amended--
       (1) in subsection (a)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) In general.--Financial assistance provided under this 
     chapter to a State or a local governmental authority may be 
     used to acquire an interest in, or to buy property of, a 
     private company engaged in public transportation, for a 
     capital project for property acquired from a private company 
     engaged in public transportation after July 9, 1964, or to 
     operate a public transportation facility or equipment in 
     competition with, or in addition to, transportation service 
     provided by an existing public transportation company, only 
     if--
       ``(A) the Secretary determines that such financial 
     assistance is essential to a program of projects required 
     under sections 5303, 5304, and 5306;
       ``(B) the Secretary determines that the program provides 
     for the participation of private companies engaged in public 
     transportation to the maximum extent feasible; and
       ``(C) just compensation under State or local law will be 
     paid to the company for its franchise or property.''; and
       (B) in paragraph (2), by striking ``(2)'' and inserting the 
     following:
       ``(2) Limitation.--'';
       (2) by amending subsection (b) to read as follows:
       ``(b) Notice and Public Hearing.--
       ``(1) In general.--An application for a grant under this 
     chapter for a capital project that will substantially affect 
     a community, or the public transportation service of a 
     community, shall include, in the environmental record for the 
     project, evidence that the applicant has--
       ``(A) provided an adequate opportunity for public review 
     and comment on the project;
       ``(B) held a public hearing on the project if the project 
     affects significant economic, social, or environmental 
     interests;
       ``(C) considered the economic, social, and environmental 
     effects of the project; and
       ``(D) found that the project is consistent with official 
     plans for developing the urban area.
       ``(2) Contents of notice.--Notice of a hearing under this 
     subsection--
       ``(A) shall include a concise description of the proposed 
     project; and
       ``(B) shall be published in a newspaper of general 
     circulation in the geographic area the project will serve.'';
       (3) by amending subsection (c) to read as follows:
       ``(c) New Technology.--A grant for financial assistance 
     under this chapter for new technology, including innovative 
     or improved products, techniques, or methods, shall be 
     subject to the requirements of section 5309 to the extent the 
     Secretary determines to be appropriate.'';
       (4) by amending subsection (d) to read as follows:
       ``(d) Conditions on Bus Transportation Service.--Financial 
     assistance under this chapter may be used to buy or operate a 
     bus only if the recipient agrees to comply with the following 
     conditions on bus transportation service:
       ``(1) Charter bus service.--
       ``(A) In general.--Except as provided under subparagraph 
     (B), a recipient may provide incidental charter bus service 
     only within its lawful service area if--
       ``(i) the recipient annually publishes, by electronic and 
     other appropriate means, a notice--

       ``(I) indicating its intent to offer incidental charter bus 
     service within its lawful service area; and

[[Page 1201]]

       ``(II) soliciting notices from private bus operators that 
     wish to appear on a list of carriers offering charter bus 
     service in that service area;

       ``(ii) the recipient provides private bus operators with an 
     annual opportunity to notify the recipient of its desire to 
     appear on a list of carriers offering charter bus service in 
     such service area;
       ``(iii) upon receiving a request for charter bus service, 
     the recipient electronically notifies the private bus 
     operators listed as offering charter service in that service 
     area with the name and contact information of the requestor 
     and the nature of the charter service request; and
       ``(iv) the recipient does not offer to provide charter bus 
     service unless no private bus operator indicates that it is 
     willing and able to provide the service within a 72-hour 
     period after the receipt of such notice.
       ``(B) Exception.--A recipient that operates 2,000 or fewer 
     vehicles in fixed-route peak hour service may provide 
     incidental charter bus transportation directly to--
       ``(i) local governments; and
       ``(ii) social service entities with limited resources.
       ``(C) Irregularly scheduled events.--Service, other than 
     commuter service, by a recipient to irregularly scheduled 
     events, where the service is conducted in whole or in part 
     outside the service area of the recipient, regardless of 
     whether the service is contracted for individually with 
     passengers, is subject to a rebuttable presumption that such 
     service is charter service.
       ``(2) Violation of agreements.--
       ``(A) Complaints.--A complaint regarding the violation of a 
     charter bus service agreement shall be submitted to the 
     Regional Administrator of the Federal Transit Administration, 
     who shall--
       ``(i) provide a reasonable opportunity for the recipient to 
     respond to the complaint;
       ``(ii) provide the recipient with an opportunity for an 
     informal hearing; and
       ``(iii) issue a written decision not later than 60 days 
     after the parties have completed their submissions.
       ``(B) Appeals.--
       ``(i) In general.--A decision by the Regional Administrator 
     may be appealed to a panel comprised of the Federal Transit 
     Administrator, personnel in the Office of the Secretary of 
     Transportation, and other persons with expertise in surface 
     passenger transportation issues.
       ``(ii) Standard of review.--The panel described in clause 
     (i) shall consider the complaint de novo on all issues of 
     fact and law.
       ``(iii) Written decision.--The appeals panel shall issue a 
     written decision on an appeal not later than 60 days after 
     the completion of submissions. This decision shall be the 
     final order of the agency and subject to judicial review in 
     district court.
       ``(C) Correction.--If the Secretary determines that a 
     violation of an agreement relating to the provision of 
     charter service has occurred, the Secretary shall correct the 
     violation under terms of the agreement.
       ``(D) Remedies.--The Secretary may issue orders to 
     recipients to cease and desist in actions that violate the 
     agreement, and such orders shall be binding upon the parties. 
     In addition to any remedy spelled out in the agreement, if a 
     recipient has failed to correct a violation within 60 days 
     after the receipt of a notice of violation from the 
     Secretary, the Secretary shall withhold from the recipient 
     the lesser of--
       ``(i) 5 percent of the financial assistance available to 
     the recipient under this chapter for the next fiscal year; or
       ``(ii) $200,000.
       ``(3) Regulations.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall issue amended regulations that--
       ``(A) implement this subsection, as revised by such Act; 
     and
       ``(B) impose restrictions, procedures, and remedies in 
     connection with sightseeing service by a recipient.
       ``(4) Public notice.--The Secretary shall make all written 
     decisions, guidance, and other pertinent materials relating 
     to the procedures in this subsection available to the public 
     in electronic and other appropriate formats in a timely 
     manner.'';
       (5) by striking subsection (e);
       (6) by redesignating subsection (f) as subsection (e);
       (7) in subsection (e), as redesignated--
       (A) by striking ``(1)'' and inserting the following:
       ``(1) In general.--'';
       (B) by striking paragraph (2);
       (C) by striking ``This subsection'' and inserting the 
     following:
       ``(2) Exceptions.--This subsection; and
       (D) by adding at the end the following:
       ``(3) Penalty.--If the Secretary determines that an 
     applicant, governmental authority, or publicly owned operator 
     has violated the agreement required under paragraph (1), the 
     Secretary shall bar the applicant, authority, or operator 
     from receiving Federal transit assistance in an amount the 
     Secretary determines to be appropriate.'';
       (8) by inserting after subsection (e) the following:
       ``(f) Bond Proceeds Eligible for Local Share.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a recipient of assistance under section 5307 or 5309, 
     may use the proceeds from the issuance of revenue bonds as 
     part of the local matching funds for a capital project.
       ``(2) Reimbursement by secretary.--The Secretary may 
     reimburse an eligible recipient for deposits of bond proceeds 
     in a debt service reserve that the recipient established 
     pursuant to section 5302(a)(1)(K) from amounts made available 
     to the recipient under section 5307 or 5309.'';
       (9) in subsection (g)--
       (A) by striking ``(f)'' each place it appears and inserting 
     ``(e)''; and
       (B) by striking ``103(e)(4) and 142 (a) or (c)'' each place 
     it appears and inserting ``133 and 142'';
       (10) by amending subsection (h) to read as follows:
       ``(h) Transfer of Lands or Interests in Lands Owned by the 
     United States.--
       (1) Request by secretary.--If the Secretary determines that 
     any part of the lands or interests in lands owned by the 
     United States and made available as a result of a military 
     base closure is necessary for transit purposes eligible under 
     this chapter, including corridor preservation, the Secretary 
     shall submit a request to the head of the Federal agency 
     supervising the administration of such lands or interests in 
     lands. Such request shall include a map showing the portion 
     of such lands or interests in lands, which is desired to be 
     transferred for public transportation purposes.
       ``(2) Transfer of land.--If 4 months after submitting a 
     request under paragraph (1), the Secretary does not receive a 
     response from the Federal agency described in paragraph (1) 
     that certifies that the proposed appropriation of land is 
     contrary to the public interest or inconsistent with the 
     purposes for which such land has been reserved, or if the 
     head of such agency agrees to the utilization or transfer 
     under conditions necessary for the adequate protection and 
     utilization of the reserve, such land or interests in land 
     may be utilized or transferred to a State, local governmental 
     authority, or public transportation operator for such 
     purposes and subject to the conditions specified by such 
     agency.
       ``(3) Reversion.--If at any time the lands or interests in 
     land utilized or transferred under paragraph (2) are no 
     longer needed for public transportation purposes, the State, 
     local governmental authority, or public transportation 
     operator that received the land shall notify to the 
     Secretary, and such lands shall immediately revert to the 
     control of the head of the Federal agency from which the land 
     was originally transferred.'';
       (11) in subsection (j)(5), by striking ``Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240, 
     105 Stat. 1914)'' and inserting ``Federal Public 
     Transportation Act of 2004'';
       (12) by amending subsection (l) to read as follows:
       ``(l) Relationship to Other Laws.--Section 1001 of title 18 
     applies to a certificate, submission, or statement provided 
     under this chapter. The Secretary may terminate financial 
     assistance under this chapter and seek reimbursement 
     directly, or by offsetting amounts, available under this 
     chapter, if the Secretary determines that a recipient of such 
     financial assistance has made a false or fraudulent statement 
     or related act in connection with a Federal transit 
     program.'';
       (13) in subsection (m), by inserting at the end the 
     following: ``Requirements to perform preaward and 
     postdelivery reviews of rolling stock purchases to ensure 
     compliance with subsection (j) shall not apply to private 
     nonprofit organizations or to grantees serving urbanized 
     areas with a population of fewer than 1,000,000.'';
       (14) in subsection (o), by striking ``assistance or other 
     financing under the Transportation Infrastructure Finance and 
     Innovation Act of 1998'' and inserting ``a loan or loan 
     guarantee under title 23''; and
       (15) by adding at the end the following:
       ``(p) Prohibited Use of Funds.--Grant funds received under 
     this chapter may not be used to pay ordinary governmental or 
     nonproject operating expenses.''.

     SEC. 3023. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

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

     ``Sec. 5324. Special provisions for capital projects

       ``(a) Real Property and Relocation Services.--Whenever real 
     property is acquired or furnished as a required contribution 
     incident to a project, the Secretary shall not approve the 
     application for financial assistance unless the applicant has 
     made all payments and provided all assistance and assurances 
     that are required of a State agency under sections 210 and 
     305 of the Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 (42 U.S.C. 4630 and 4655). 
     The Secretary must be advised of specific references to any 
     State law that are believed to be an exception to section 301 
     or 302 of such Act (42 U.S.C. 4651 and 4652).
       ``(b) Advance Real Property Acquisitions.--
       (1) In general.--The Secretary may participate in the 
     acquisition of real property before the completion of the 
     environmental reviews for any project that may use the

[[Page 1202]]

     property if the Secretary determines that external market 
     forces are jeopardizing the potential use of the property for 
     the project and if--
       ``(A) there are offers on the open real estate market to 
     convey that property for a use that is incompatible with the 
     project under study;
       ``(B) there is an imminent threat of development or 
     redevelopment of the property for a use that is incompatible 
     with the project under study;
       ``(C) recent appraisals reflect a rapid increase in the 
     fair market value of the property;
       ``(D) the property, because it is located near an existing 
     transportation facility, is likely to be developed and to be 
     needed for a future transportation improvement; or
       ``(E) the property owner can demonstrate that, for health, 
     safety, or financial reasons, retaining ownership of the 
     property poses an undue hardship on the owner in comparison 
     to other affected property owners and requests the 
     acquisition to alleviate that hardship.
       ``(2) Protection of public lands.--Property acquired in 
     accordance with this subsection may not be developed in 
     anticipation of the project unless the Secretary has complied 
     with the National Environmental Policy Act of 1969 (42 U.S.C. 
     4321 et seq.) for protection of publicly owned park lands, 
     wildlife and waterfowl refuges, and historic sites.
       ``(3) Limitation.--The Secretary shall limit the size and 
     number of properties acquired under this subsection as 
     necessary to avoid any prejudice to the Secretary's objective 
     evaluation of project alternatives.
       ``(4) Exemption.--An acquisition under this section shall 
     be considered an exempt project under section 176 of the 
     Clean Air Act (42 U.S.C. 7506).
       ``(c) Railroad Corridor Preservation.--
       ``(1) In general.--The Secretary may assist an applicant to 
     acquire railroad right-of-way before the completion of the 
     environmental reviews for any project that may use the right-
     of-way if the acquisition is otherwise permitted under 
     Federal law. The Secretary may establish restrictions on such 
     an acquisition as the Secretary determines to be necessary 
     and appropriate.
       ``(2) Protection of public lands.--Railroad right-of-way 
     acquired under this subsection may not be developed in 
     anticipation of the project until the Secretary has complied 
     with the National Environmental Policy Act of 1969 (42 U.S.C. 
     4321 et seq.) for protection of publicly owned park lands, 
     wildlife and waterfowl refuges, and historic sites.
       ``(d) Consideration of Economic, Social, and Environmental 
     Interests.--
       ``(1) In general.--The Secretary may not approve an 
     application for financial assistance for a capital project 
     under this chapter unless the Secretary determines that the 
     project has been developed in accordance with the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
     The Secretary's findings under this paragraph shall be made a 
     matter of public record.
       ``(2) Cooperation and consultation.--In carrying out 
     section 5301(e), the Secretary shall cooperate and consult 
     with the Secretary of the Interior and the Administrator of 
     the Environmental Protection Agency on each project that may 
     have a substantial impact on the environment.''.
       (b) Conforming Amendment.--The item relating to section 
     5324 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     SEC. 3024. CONTRACT REQUIREMENTS.

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

     ``Sec. 5325. Contract requirements

       ``(a) Competition.--Recipients of assistance under this 
     chapter shall conduct all procurement transactions in a 
     manner that provides full and open competition as determined 
     by the Secretary.
       ``(b) Architectural, Engineering, and Design Contracts.--
       ``(1) In general.--A contract or requirement for program 
     management, architectural engineering, construction 
     management, a feasibility study, and preliminary engineering, 
     design, architectural, engineering, surveying, mapping, or 
     related services for a project for which Federal assistance 
     is provided under this chapter shall be awarded in the same 
     manner as a contract for architectural and engineering 
     services is negotiated under chapter 11 of title 40, or an 
     equivalent qualifications-based requirement of a State. This 
     subsection does not apply to the extent a State has adopted 
     or adopts by law a formal procedure for procuring those 
     services.
       ``(2) Additional requirements.--When awarding a contract 
     described in paragraph (1), recipients of assistance under 
     this chapter shall comply with the following requirements:
       ``(A) Any contract or subcontract awarded under this 
     chapter shall be performed and audited in compliance with 
     cost principles contained in part 31 of title 48, Code of 
     Federal Regulations (commonly known as the Federal 
     Acquisition Regulation).
       ``(B) A recipient of funds under a contract or subcontract 
     awarded under this chapter shall accept indirect cost rates 
     established in accordance with the Federal Acquisition 
     Regulation for 1-year applicable accounting periods by a 
     cognizant Federal or State government agency, if such rates 
     are not currently under dispute.
       ``(C) After a firm's indirect cost rates are accepted under 
     subparagraph (B), the recipient of the funds shall apply such 
     rates for the purposes of contract estimation, negotiation, 
     administration, reporting, and contract payment, and shall 
     not be limited by administrative or de facto ceilings.
       ``(D) A recipient requesting or using the cost and rate 
     data described in subparagraph (C) shall notify any affected 
     firm before such request or use. Such data shall be 
     confidential and shall not be accessible or provided by the 
     group of agencies sharing cost data under this subparagraph, 
     except by written permission of the audited firm. If 
     prohibited by law, such cost and rate data shall not be 
     disclosed under any circumstances.
       ``(c) Efficient Procurement.--A recipient may award a 
     procurement contract under this chapter to other than the 
     lowest bidder if the award furthers an objective consistent 
     with the purposes of this chapter, including improved long-
     term operating efficiency and lower long-term costs.
       ``(d) Design-Build Projects.--
       ``(1) Defined term.--As used in this subsection, the term 
     `design-build project'--
       ``(A) means a project under which a recipient enters into a 
     contract with a seller, firm, or consortium of firms to 
     design and build an operable segment of a public 
     transportation system that meets specific performance 
     criteria; and
       ``(B) may include an option to finance, or operate for a 
     period of time, the system or segment or any combination of 
     designing, building, operating, or maintaining such system or 
     segment.
       ``(2) Financial assistance for capital costs.--Federal 
     financial assistance under this chapter may be provided for 
     the capital costs of a design-build project after the 
     recipient complies with Government requirements.
       ``(e) Rolling Stock.--
       ``(1) Acquisition.--A recipient of financial assistance 
     under this chapter may enter into a contract to expend that 
     assistance to acquire rolling stock--
       ``(A) with a party selected through a competitive 
     procurement process; or
       ``(B) based on--
       ``(i) initial capital costs; or
       ``(ii) performance, standardization, life cycle costs, and 
     other factors.
       ``(2) Multiyear contracts.--A recipient procuring rolling 
     stock with Federal financial assistance under this chapter 
     may make a multiyear contract, including options, to buy not 
     more than 5 years of requirements for rolling stock and 
     replacement parts. The Secretary shall allow a recipient to 
     act on a cooperative basis to procure rolling stock under 
     this paragraph and in accordance with other Federal 
     procurement requirements.
       ``(f) Examination of Records.--Upon request, the Secretary 
     and the Comptroller General, or any of their representatives, 
     shall have access to and the right to examine and inspect all 
     records, documents, and papers, including contracts, related 
     to a project for which a grant is made under this chapter.
       ``(g) Grant Prohibition.--A grant awarded under this 
     chapter may not be used to support a procurement that uses an 
     exclusionary or discriminatory specification.
       ``(h) Bus Dealer Requirements.--No State law requiring 
     buses to be purchased through in-State dealers shall apply to 
     vehicles purchased with a grant under this chapter.
       ``(i) Awards to Responsible Contractors.--
       ``(1) In general.--Federal financial assistance under this 
     chapter may be provided for contracts only if a recipient 
     awards such contracts to responsible contractors possessing 
     the ability to successfully perform under the terms and 
     conditions of a proposed procurement.
       ``(2) Criteria.--Before making an award to a contractor 
     under paragraph (1), a recipient shall consider--
       ``(A) the integrity of the contractor;
       ``(B) the contractor's compliance with public policy;
       ``(C) the contractor's past performance, including the 
     performance reported in the Contractor Performance Assessment 
     Reports required under section 5309(m)(4); and
       ``(D) the contractor's financial and technical 
     resources.''.
       (b) Conforming Amendments.--Chapter 53 is amended by 
     striking section 5326.

     SEC. 3025. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

       (a) Project Management Plan Requirements.--Section 5327(a) 
     is amended--
       (1) in paragraph (11), by striking ``and'' at the end;
       (2) in paragraph (12), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(13) safety and security management.''.
       (b) Limitations on Use of Available Amounts.--Section 
     5327(c) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) In general.--The Secretary may not use more than 1 
     percent of amounts made available for a fiscal year to carry 
     out any of sections 5307 through 5311, 5316, or 5317, or a

[[Page 1203]]

     project under the National Capital Transportation Act of 1969 
     (Public Law 91-143) to make a contract to oversee the 
     construction of major projects under any of sections 5307 
     through 5311, 5316, or 5317 or under that Act.'';
       (2) in paragraph (2)--
       (A) by striking ``(2)'' and inserting the following:
       ``(2) Other allowable uses.--''; and
       (B) by inserting ``and security'' after ``safety''; and
       (3) in paragraph (3), by striking ``(3) The Government 
     shall'' and inserting the following:
       ``(3) Federal share.--Federal funds shall be used to''.

     SEC. 3026. PROJECT REVIEW.

       Section 5328 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1) by striking ``(1) When the Secretary 
     of Transportation allows a new fixed guideway project to 
     advance into the alternatives analysis stage of project 
     review, the Secretary shall cooperate with the applicant'' 
     and inserting the following:
       ``(1) Approval of draft environmental impact statement.--
     The Secretary shall cooperate with an applicant undertaking 
     an alternatives analysis under subsections (e) and (f) of 
     section 5309'';
       (B) in paragraph (2)--
       (i) by striking ``(2)'' and inserting the following:
       ``(2) Advancement to preliminary engineering stage.--''; 
     and
       (ii) by striking ``is consistent with'' and inserting 
     ``meets the requirements of'';
       (C) in paragraph (3)--
       (i) by striking ``(3)'' and inserting the following:
       ``(3) Record of decision.--'';
       (ii) by striking ``of construction''; and
       (iii) by adding before the period at the end the following: 
     ``if the Secretary determines that the project meets the 
     requirements of subsections (e) and (f) of section 5309''; 
     and
       (D) by striking paragraph (4); and
       (2) by striking subsection (c).

     SEC. 3027. INVESTIGATIONS OF SAFETY AND SECURITY RISK.

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

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

       ``(a) In General.--The Secretary may conduct investigations 
     into safety hazards and security risks associated with a 
     condition in equipment, a facility, or an operation financed 
     under this chapter to establish the nature and extent of the 
     condition and how to eliminate, mitigate, or correct it.
       ``(b) Submission of Corrective Plan.--If the Secretary 
     establishes that a safety hazard or security risk warrants 
     further protective measures, the Secretary shall require the 
     local governmental authority receiving amounts under this 
     chapter to submit a plan for eliminating, mitigating, or 
     correcting it.
       ``(c) Withholding of Funds.--Financial assistance under 
     this chapter, in an amount to be determined by the Secretary, 
     may be withheld until a plan is approved and carried out.''.
       (b) Conforming Amendment.--The item relating to section 
     5329 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     SEC. 3028. STATE SAFETY OVERSIGHT.

       (a) In General.--Section 5330 is amended--
       (1) by amending the heading to read as follows:

     ``Sec. 5330. Withholding amounts for noncompliance with State 
       safety oversight requirements'';

       (2) by amending subsection (a) to read as follows:
       ``(a) Application.--This section shall only apply to--
       ``(1) States that have rail fixed guideway public 
     transportation systems that are not subject to regulation by 
     the Federal Railroad Administration; and
       ``(2) States that are designing rail fixed guideway public 
     transportation systems that will not be subjected to 
     regulation by the Federal Railroad Administration.'';
       (3) in subsection (d), by striking ``affected States'' and 
     inserting the following: ``affected States--
       ``(1) shall ensure uniform safety standards and 
     enforcement; or
       ``(2) may designate''; and
       (4) in subsection (f), by striking ``Not later than 
     December 18, 1992, the'' and inserting ``The''.
       (b) Conforming Amendment.--The item relating to section 
     5330 in the table of sections for chapter 53 is amended to 
     read as follows:

``5330. Withholding amounts for noncompliance with State safety 
              oversight requirements.''.

     SEC. 3029. SENSITIVE SECURITY INFORMATION.

       Section 40119(b) is amended--
       (1) in paragraph (1)(C), by inserting ``, transportation 
     facilities or infrastructure, or transportation employees'' 
     before the period at the end; and
       (2) by adding at the end the following:
       ``(3) A State or local government may not enact, enforce, 
     prescribe, issue, or continue in effect any law, regulation, 
     standard, or order to the extent it is inconsistent with this 
     section or regulations prescribed under this section.''.

     SEC. 3030. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE 
                   AGAINST PUBLIC TRANSPORTATION SYSTEMS.

       (a) In General.--Section 1993 of title 18, United States 
     Code, is amended--
       (1) by striking ``mass'' each place it appears and 
     inserting ``public'';
       (2) in subsection (a)(5), by inserting ``controlling,'' 
     after ``operating''; and
       (3) in subsection (c)(5), by striking ``5302(a)(7) of title 
     49, United States Code,'' and inserting ``5302(a) of title 
     49,''.
       (b) Conforming Amendment.--The table of contents for 
     chapter 97 of title 18, United States Code is amended by 
     amending the item related to section 1993 to read as follows:

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

     SEC. 3031. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

       Section 5331 is amended--
       (1) in subsection (a)(3), by inserting before the period at 
     the end the following: ``or sections 2303a, 7101(i), or 
     7302(e) of title 46. The Secretary may also decide that a 
     form of public transportation is covered adequately, for 
     employee alcohol and controlled substances testing purposes, 
     under the alcohol and controlled substance statutes or 
     regulations of an agency within the Department of 
     Transportation or other Federal agency''; and
       (2) in subsection (f), by striking paragraph (3).

     SEC. 3032. EMPLOYEE PROTECTIVE ARRANGEMENTS.

       Section 5333(b) is amended--
       (1) in paragraph (3), by striking the period at the end and 
     inserting ``, if--
       ``(A) the protective period does not exceed 4 years; and
       ``(B) the separation allowance does not exceed 12 
     months.''; and
       (2) by adding at the end the following:
       ``(4) An arrangement under this subsection shall not 
     guarantee continuation of employment as a result of a change 
     in private contractors through competitive bidding unless 
     such continuation is otherwise required under subparagraph 
     (A), (B), or (D) of paragraph (2).
       ``(5) Fair and equitable arrangements to protect the 
     interests of employees utilized by the Secretary of Labor for 
     assistance to purchase like-kind equipment or facilities, and 
     amendments to existing assistance agreements, shall be 
     certified without referral.''.

     SEC. 3033. ADMINISTRATIVE PROCEDURES.

       Section 5334 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``5309-5311 of this 
     title'' and all that follows and inserting ``5309 through 
     5311;'';
       (B) in paragraph (9), by striking ``and'' at the end;
       (C) in paragraph (10), by striking the period at the end 
     and inserting ``; and''; and
       (D) by inserting at the end the following:
       ``(11) issue regulations as necessary to carry out the 
     purposes of this chapter.'';
       (2) by redesignating subsections (b), (c), (d), (e), (f), 
     (g), (h), (i), and (j) as subsections (c), (d), (e), (f), 
     (g), (h), (i), (j), and (k), respectively;
       (3) by adding after subsection (a) the following:
       ``(b) Prohibitions Against Regulating Operations and 
     Charges.--
       ``(1) In general.--Except as directed by the President for 
     purposes of national defense or in the event of a national or 
     regional emergency, the Secretary may not regulate--
       ``(A) the operation, routes, or schedules of a public 
     transportation system for which a grant is made under this 
     chapter; or
       ``(B) the rates, fares, tolls, rentals, or other charges 
     prescribed by any public or private transportation provider.
       ``(2) Compliance with agreement.--Nothing in this 
     subsection shall prevent the Secretary from requiring a 
     recipient of funds under this chapter to comply with the 
     terms and conditions of its Federal assistance agreement.''; 
     and
       (4) in subsection (j)(1), as redesignated, by striking 
     ``carry out section 5312(a) and (b)(1) of this title'' and 
     inserting ``advise and assist the Secretary in carrying out 
     section 5312(a)''.

     SEC. 3034. REPORTS AND AUDITS.

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

     SEC. 3035. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA 
                   GRANTS.

       Section 5336 is amended--
       (1) by striking subsection (d);
       (2) by striking subsection (h);
       (3) by striking subsection (k);
       (4) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (5) by adding before subsection (b), as redesignated, the 
     following:

[[Page 1204]]

       ``(a) Apportionments.--Of the amounts made available for 
     each fiscal year under subsections (a)(1)(C)(vi) and 
     (b)(2)(L) of section 5338--
       ``(1) there shall be apportioned, in fiscal year 2005 and 
     each fiscal year thereafter, $35,000,000 to certain urbanized 
     areas with populations of less than 200,000 in accordance 
     with subsection (k); and
       ``(2) any amount not apportioned under paragraph (1) shall 
     be apportioned to urbanized areas in accordance with 
     subsections (b) through (d).'';
       (6) in subsection (b), as redesignated--
       (A) by striking ``Of the amount made available or 
     appropriated under section 5338(a) of this title'' and 
     inserting ``Of the amount apportioned under subsection 
     (a)(3)''; and
       (B) in paragraph (2), by striking ``subsections (b) and (c) 
     of this section'' and inserting ``subsections (c) and (d)'';
       (7) in subsection (c)(2), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (8) in subsection (d), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (9) in subsection (e)(1), by striking ``subsections (a) and 
     (h)(2) of section 5338 of this title'' and inserting 
     ``subsections (a) and (b) of section 5338'';
       (10) in subsection (g), by striking ``subsection (a)(1) of 
     this section'' each place it appears and inserting 
     ``subsection (b)(1)''; and
       (11) by adding at the end the following:
       ``(k) Small Transit Intensive Cities Factors.--
       ``(1) Apportionment based upon revenue vehicle miles.--Of 
     the amount apportioned under subsection (a)(1), one-third 
     shall be apportioned to urbanized areas as follows:
       ``(A) The Secretary shall calculate a factor equal to the 
     sum of revenue vehicle miles operated within urbanized areas 
     with a population of between 200,000 and 1,000,000 divided by 
     the sum of the population of all such urbanized areas.
       ``(B) The Secretary shall designate as eligible for an 
     apportionment under this paragraph all urbanized areas with a 
     population of under 200,000 for which the number of revenue 
     vehicle miles operated within the urbanized area divided by 
     the population of the urbanized area exceeds the factor 
     calculated under subparagraph (A).
       ``(C) For each urbanized area qualifying for an 
     apportionment under subparagraph (B), the Secretary shall 
     calculate an amount equal to the product of the population of 
     that urbanized area and the factor calculated under 
     subparagraph (A).
       ``(D) For each urbanized area qualifying for an 
     apportionment under subparagraph (B), the Secretary shall 
     calculate an amount equal to the difference between the 
     number of revenue vehicle miles within that urbanized area 
     less the amount calculated in subparagraph (C).
       ``(E) Each urbanized area qualifying for an apportionment 
     under subparagraph (B) shall receive an amount equal to the 
     amount to be apportioned under this subsection multiplied by 
     the amount calculated for that urbanized area under 
     subparagraph (D) divided by the sum of the amounts calculated 
     under subparagraph (D) for all urbanized areas qualifying for 
     an apportionment under subparagraph (B).
       ``(2) Apportionment based upon revenue vehicle hours.--Of 
     the amount apportioned under subsection (a)(1), one-third 
     shall be apportioned to urbanized areas as follows:
       ``(A) The Secretary shall calculate a factor equal to the 
     sum of revenue vehicle hours operated within urbanized areas 
     with a population of between 200,000 and 1,000,000 divided by 
     the sum of the population of all such urbanized areas.
       ``(B) The Secretary shall designate as eligible for an 
     apportionment under this paragraph all urbanized areas with a 
     population of under 200,000 for which the number of revenue 
     vehicle hours operated within the urbanized area divided by 
     the population of the urbanized area exceeds the factor 
     calculated under subparagraph (A).
       ``(C) For each urbanized area qualifying for an 
     apportionment under subparagraph (B), the Secretary shall 
     calculate an amount equal to the product of the population of 
     that urbanized area and the factor calculated under 
     subparagraph (A).
       ``(D) For each urbanized area qualifying for an 
     apportionment under subparagraph (B), the Secretary shall 
     calculate an amount equal to the difference between the 
     number of revenue vehicle hours within that urbanized area 
     less the amount calculated in subparagraph (C).
       ``(E) Each urbanized area qualifying for an apportionment 
     under subparagraph (B) shall receive an amount equal to the 
     amount to be apportioned under this subsection multiplied by 
     the amount calculated for that urbanized area under 
     subparagraph (D) divided by the sum of the amounts calculated 
     under subparagraph (D) for all urbanized areas qualifying for 
     an apportionment under subparagraph (B).
       ``(3) Apportionment based upon passenger miles.--Of the 
     amount apportioned under subsection (a)(1), one-third shall 
     be apportioned to urbanized areas as follows:
       ``(A) The Secretary shall calculate a factor equal to the 
     sum of passenger miles consumed within urbanized areas with a 
     population of between 200,000 and 1,000,000 divided by the 
     sum of the population of all such urbanized areas.
       ``(B) The Secretary shall designate as eligible for an 
     apportionment under this paragraph all urbanized areas with a 
     population of under 200,000 for which the number of passenger 
     miles consumed within the urbanized area divided by the 
     population of the urbanized area exceeds the factor 
     calculated under subparagraph (A).
       ``(C) For each urbanized area qualifying for an 
     apportionment under subparagraph (B), the Secretary shall 
     calculate an amount equal to the product of the population of 
     that urbanized area and the factor calculated under 
     subparagraph (A).
       ``(D) For each urbanized area qualifying for an 
     apportionment under subparagraph (B), the Secretary shall 
     calculate an amount equal to the difference between the 
     number of passenger miles consumed within that urbanized area 
     less the amount calculated in subparagraph (C).
       ``(E) Each urbanized area qualifying for an apportionment 
     under subparagraph (B) shall receive an amount equal to the 
     amount to be apportioned under this subsection multiplied by 
     the amount calculated for that urbanized area under 
     subparagraph (D) divided by the sum of the amounts calculated 
     under subparagraph (D) for all urbanized areas qualifying for 
     an apportionment under subparagraph (B).
       ``(l) Study on Incentives in Formula Programs.--
       ``(1) Study.--The Secretary shall conduct a study to assess 
     the feasibility and appropriateness of developing and 
     implementing an incentive funding system under sections 5307 
     and 5311 for operators of public transportation.
       ``(2) Report.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall submit a report on the results of the 
     study conducted under paragraph (1) to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall include--
       ``(i) an analysis of the availability of appropriate 
     measures to be used as a basis for the distribution of 
     incentive payments;
       ``(ii) the optimal number and size of any incentive 
     programs;
       ``(iii) what types of systems should compete for various 
     incentives;
       ``(iv) how incentives should be distributed; and
       ``(v) the likely effects of the incentive funding 
     system.''.

     SEC. 3036. APPORTIONMENTS FOR FIXED GUIDEWAY MODERNIZATION.

       Section 5337 is amended--
       (1) in subsection (a), by striking ``for each of fiscal 
     years 1998 through 2003''; and
       (2) by striking ``section 5336(b)(2)(A)'' each place it 
     appears and inserting ``section 5336(c)(2)(A)''.

     SEC. 3037. AUTHORIZATIONS.

       Section 5338 is amended to read as follows:

     ``Sec. 5338. Authorizations

       ``(a) Fiscal Year 2004.--
       ``(1) Formula grants.--
       ``(A) Trust fund.--For fiscal year 2004, $3,013,315,920 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out sections 5307, 5310, and 5311 
     of this chapter and section 3038 of the Transportation Equity 
     Act for the 21st Century (49 U.S.C. 5310 note).
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $753,328,980 for fiscal year 2004 to carry out 
     sections 5307, 5310, and 5311 of this chapter and section 
     3038 of the Transportation Equity Act for the 21st Century 
     (49 U.S.C. 5310 note).
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $4,821,335 shall be available to the Alaska Railroad 
     for improvements to its passenger operations under section 
     5307;
       ``(ii) $6,908,995 shall be available to provide over-the-
     road bus accessibility grants under section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note);
       ``(iii) $90,117,950 shall be available to provide 
     transportation services to elderly individuals and 
     individuals with disabilities under section 5310;
       ``(iv) $239,188,058 shall be available to provide financial 
     assistance for other than urbanized areas under section 5311; 
     and
       ``(v) $3,425,608,562 shall be available to provide 
     financial assistance for urbanized areas under section 5307.
       ``(2) Job access and reverse commute.--
       ``(A) Trust fund.--For fiscal year 2004, $83,504,400 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 3037 of the Transportation 
     Equity Act for the 21st Century (49 U.S.C. 5309 note).
       ``(B) General fund.--In addition to the amounts made 
     available under paragraph (A), there are authorized to be 
     appropriated $20,876,100 for fiscal year 2004 to carry out 
     section 3037 of the Transportation Equity Act of the 21st 
     Century (49 U.S.C. 5309 note).

[[Page 1205]]

       ``(3) Capital program grants.--
       ``(A) Trust fund.--For fiscal year 2004, $2,550,860,600 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out section 5309.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $637,715,150 for fiscal year 2004 to carry out 
     section 5309.
       ``(4) Planning.--
       ``(A) Trust fund.--For fiscal year 2004, $58,055,440 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5308.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $14,513,860 for fiscal year 2004 to carry out 
     section 5308.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) 82.72 percent shall be allocated for metropolitan 
     planning under section 5308(c); and
       ``(ii) 17.28 percent shall be allocated for State planning 
     under section 5308(d).
       ``(5) Research.--
       ``(A) Trust fund.--For fiscal year 2004, $42,149,840 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5311(b), 5312, 5313, 5314, 
     5315, and 5322.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $10,537,460 for fiscal year 2004 to carry out 
     sections 5311(b), 5312, 5313, 5314, 5315, and 5322.
       ``(C) Allocation of funds.--Of the funds made available or 
     appropriated under this paragraph--
       ``(i) not less than $3,976,400 shall be available to carry 
     out programs of the National Transit Institute under section 
     5315;
       ``(ii) not less than $5,219,025 shall be available to carry 
     out section 5311(b)(2);
       ``(iii) not less than $8,201,325 shall be available to 
     carry out section 5313; and
       ``(iv) the remainder shall be available to carry out 
     national research and technology programs under sections 
     5312, 5314, and 5322.
       ``(6) University transportation research.--
       ``(A) Trust fund.--For fiscal year 2004, $4,771,680 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5505 and 5506.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there are authorized to be 
     appropriated $1,192,920 for fiscal year 2004 to carry out 
     sections 5505 and 5506.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $1,988,200 shall be available for grants under 
     5506(f)(5) to the institution identified in section 
     5505(j)(3)(E), as in effect on the day before the date of 
     enactment of the Federal Public Transportation Act of 2004;
       ``(ii) $1,988,200 shall be available for grants under 
     section 5505(d) to the institution identified in section 
     5505(j)(4)(A), as in effect on the date specified in clause 
     (i); and
       ``(iii) $1,988,200 shall be available for grants under 
     section 5505(d) to the institution identified in section 
     5505(j)(4)(F), as in effect on the date specified in 
     subclause (I).
       ``(C) Special rule.--Nothing in this paragraph shall be 
     construed to limit the transportation research conducted by 
     the centers receiving financial assistance under this 
     section.
       ``(7) Administration.--
       ``(A) Trust fund.--For fiscal year 2004, $60,043,640 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5334.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there are authorized to be 
     appropriated $15,010,910 for fiscal year 2004 to carry out 
     section 5334.
       ``(8) Grants as contractual obligations.--
       ``(A) Grants financed from highway trust fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts made available under paragraph (1)(A), (2)(A), 
     (3)(A), (4)(A), (5)(A), (6)(A), or (7)(A) is a contractual 
     obligation of the United States Government to pay the Federal 
     share of the cost of the project.
       ``(B) Grants financed from general fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts appropriated in advance under paragraph (1)(B), 
     (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), or (7)(B) is a 
     contractual obligation of the United States Government to pay 
     the Federal share of the cost of the project only to the 
     extent that amounts are appropriated for such purpose by an 
     Act of Congress.
       ``(9) Availability of Amounts.--Amounts made available or 
     appropriated under paragraphs (1) through (6) shall remain 
     available until expended.''.
       ``(b) Formula Grants and Research.--
       ``(1) In general.--There shall be available from the Mass 
     Transit Account of the Highway Trust Fund to carry out 
     sections 5307, 5308, 5309, 5310 through 5316, 5322, 5335, 
     5339, and 5505 of this title, and sections 3037 and 3038 of 
     the Federal Transit Act of 1998 (112 Stat. 387 et seq.)--
       ``(A) $6,262,600,000 for fiscal year 2005;
       ``(B) $6,577,629,000 for fiscal year 2006;
       ``(C) $6,950,400,000 for fiscal year 2007;
       ``(D) $7,594,760,000 for fiscal year 2008; and
       ``(E) $8,275,320,000 for fiscal year 2009.
       ``(2) Allocation of funds.--Of the amounts made available 
     under paragraph (1) for each fiscal year--
       ``(A) 0.92 percent shall be available for grants to the 
     Alaska Railroad under section 5307 for improvements to its 
     passenger operations;
       ``(B) 1.75 percent shall be available to carry out section 
     5308;
       ``(C) 2.05 percent shall be available to provide financial 
     assistance for job access and reverse commute projects under 
     section 3037 of the Federal Transit Act of 1998 (49 U.S.C. 
     5309 note);
       ``(D) 3.00 percent shall be available to provide financial 
     assistance for services for elderly persons and persons with 
     disabilities under section 5310;
       ``(E) 0.125 percent shall be available to carry out section 
     3038 of the Transportation Equity Act for the 21st Century 
     (49 U.S.C. 5310 note);
       ``(F) 6.25 percent shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       ``(G) 0.89 percent shall be available to carry out transit 
     cooperative research programs under section 5313, the 
     National Transit Institute under section 5315, university 
     research centers under section 5505, and national research 
     programs under sections 5312, 5313, 5314, and 5322, of 
     which--
       ``(i) 17.0 percent shall be allocated to carry out transit 
     cooperative research programs under section 5313;
       ``(ii) 7.5 percent shall be allocated to carry out programs 
     under the National Transit Institute under section 5315, 
     including not more than $1,000,000 to carry out section 
     5315(a)(16);
       ``(iii) 11.0 percent shall be allocated to carry out the 
     university centers program under section 5505; and
       ``(iv) any funds made available under this subparagraph 
     that are not allocated under clauses (i) through (iii) shall 
     be allocated to carry out national research programs under 
     sections 5312, 5313, 5314, and 5322;
       ``(H) $25,000,000 shall be available for each of the fiscal 
     years 2005 through 2009 to carry out section 5316;
       ``(I) there shall be available to carry out section 5335--
       ``(i) $3,700,000 in fiscal year 2005;
       ``(ii) $3,900,000 in fiscal year 2006;
       ``(iii) $4,200,000 in fiscal year 2007;
       ``(iv) $4,600,000 in fiscal year 2008; and
       ``(v) $5,000,000 in fiscal year 2009;
       ``(J) 6.25 percent shall be allocated in accordance with 
     section 5340 to provide financial assistance for urbanized 
     areas under section 5307 and other than urbanized areas under 
     section 5311; and
       ``(K) 22.0 percent shall be allocated in accordance with 
     section 5337 to provide financial assistance under section 
     5309(i)(3); and
       ``(L) any amounts not made available under subparagraphs 
     (A) through (K) shall be allocated in accordance with section 
     5336 to provide financial assistance for urbanized areas 
     under section 5307.
       ``(3) University centers program.--
       ``(A) Allocation.--Of the amounts allocated under paragraph 
     (2)(G)(iii), $1,000,000 shall be available in each of the 
     fiscal years 2005 through 2009 for Morgan State University to 
     provide transportation research, training, and curriculum 
     development.
       ``(B) Requirements.--The university specified under 
     subparagraph (A) shall be considered a University 
     Transportation Center under section 510 of title 23, and 
     shall be subject to the requirements under subsections (c), 
     (d), (e), and (f) of such section.
       ``(C) Report.--In addition to the report required under 
     section 510(e)(3) of title 23, the university specified under 
     subparagraph (A) shall annually submit a report to the 
     Secretary that describes the university's contribution to 
     public transportation.
       ``(4) Bus grants.--In addition to the amounts made 
     available under paragraph (1), there shall be available from 
     the Mass Transit Account of the Highway Trust Fund to carry 
     out section 5309(i)(2)(B)--
       ``(A) $839,829,000 for fiscal year 2005;
       ``(B) $882,075,000 for fiscal year 2006;
       ``(C) $932,064,000 for fiscal year 2007;
       ``(D) $1,018,474,000 for fiscal year 2008; and
       ``(E) $1,109,739,000 for fiscal year 2009.
       ``(c) Major Capital Investment Grants.--There are 
     authorized to be appropriated to carry out section 
     5309(i)(2)(A)--
       ``(1) $1,461,072,000 for fiscal year 2005;
       ``(2) $1,534,568,000 for fiscal year 2006;
       ``(3) $1,621,536,000 for fiscal year 2007;
       ``(4) $1,771,866,000 for fiscal year 2008; and
       ``(5) $1,930,641,000 for fiscal year 2009.
       ``(d) Administration.--There are authorized available from 
     the Mass Transit Account of the Highway Trust Fund to carry 
     out section 5334--
       ``(1) $86,500,000 for fiscal year 2005;
       ``(2) $90,851,000 for fiscal year 2006;
       ``(3) $96,000,000 for fiscal year 2007;
       ``(4) $104,900,000 for fiscal year 2008; and
       ``(5) $114,300,000 for fiscal year 2009.
       ``(e) Grants as Contractual Obligations.--
       ``(1) Mass transit account funds.--A grant or contract 
     approved by the Secretary

[[Page 1206]]

     that is financed with amounts made available under subsection 
     (b)(1) or (d) is a contractual obligation of the United 
     States Government to pay the Federal share of the cost of the 
     project.
       ``(2) Appropriated funds.--A grant or contract approved by 
     the Secretary that is financed with amounts made available 
     under subsection (b)(2) or (c) is a contractual obligation of 
     the United States Government to pay the Federal share of the 
     cost of the project only to the extent that amounts are 
     appropriated in advance for such purpose by an Act of 
     Congress.
       ``(f) Availability of Amounts.--Amounts made available by 
     or appropriated under subsections (b) and (c) shall remain 
     available until expended.''.

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

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

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

       ``(a) Allocation.--Of the amounts made available for each 
     fiscal year under section 5338(b)(2)(J), the Secretary shall 
     apportion--
       ``(1) 50 percent to States and urbanized areas in 
     accordance with subsection (b); and
       ``(2) 50 percent to States and urbanized areas in 
     accordance with subsection (c).
       ``(b) Growing State Apportionments.--
       ``(1) Apportionment among states.--The amounts apportioned 
     under paragraph (a)(1) shall provide each State with an 
     amount equal to the total amount apportioned multiplied by a 
     ratio equal to the population of that State forecast for the 
     year that is 15 years after the most recent decennial census, 
     divided by the total population of all States forecast for 
     the year that is 15 years after the most recent decennial 
     census.
       ``(2) Apportionments between urbanized areas and other than 
     urbanized areas in each state.--
       ``(A) In general.--The Secretary shall apportion amounts to 
     each State under paragraph (1) so that urbanized areas in 
     that State receive an amount equal to the amount apportioned 
     to that State multiplied by a ratio equal to the sum of the 
     forecast population of all urbanized areas in that State 
     divided by the total forecast population of that State. In 
     making the apportionment under this subparagraph, the 
     Secretary shall utilize any available forecasts made by the 
     State. If no forecasts are available, the Secretary shall 
     utilize data on urbanized areas and total population from the 
     most recent decennial census.
       ``(B) Remaining amounts.--Amounts remaining for each State 
     after apportionment under subparagraph (A) shall be 
     apportioned to that State and added to the amount made 
     available for grants under section 5311.
       ``(3) Apportionments among urbanized areas in each state.--
     The Secretary shall apportion amounts made available to 
     urbanized areas in each State under subsection (b)(2)(A) so 
     that each urbanized area receives an amount equal to the 
     amount apportioned under subsection (b)(2)(A) multiplied by a 
     ratio equal to the population of each urbanized area divided 
     by the sum of populations of all urbanized areas in the 
     State. Amounts apportioned to each urbanized area shall be 
     added to amounts apportioned to that urbanized area under 
     section 5336, and made available for grants under section 
     5307.
       ``(c) High Density State Apportionments.--Amounts to be 
     apportioned under subsection (a)(2) shall be apportioned as 
     follows:
       ``(1) Eligible states.--The Secretary shall designate as 
     eligible for an apportionment under this subsection all 
     States with a population density in excess of 370 persons per 
     square mile.
       ``(2) State urbanized land factor.--For each State 
     qualifying for an apportionment under paragraph (1), the 
     Secretary shall calculate an amount equal to the product of 
     the urban land area of urbanized areas in the State times 370 
     persons per square mile.
       ``(3) State apportionment factor.--For each State 
     qualifying for an apportionment under paragraph (1), the 
     Secretary shall calculate an amount equal to the difference 
     between the total population of the State less the amount 
     calculated in paragraph (2).
       ``(4) State apportionment.--Each State qualifying for an 
     apportionment under paragraph (1) shall receive an amount 
     equal to the amount to be apportioned under this subsection 
     multiplied by the amount calculated for the State under 
     paragraph (3) divided by the sum of the amounts calculated 
     under paragraph (3) for all States qualifying for an 
     apportionment under paragraph (1).
       ``(5) Apportionments between urbanized areas and other than 
     urbanized areas in each state.--
       ``(A) In general.--The Secretary shall apportion amounts 
     apportioned to each State under paragraph (4) so that 
     urbanized areas in that State receive an amount equal to the 
     amount apportioned to that State multiplied by a ratio equal 
     to the sum of the population of all urbanized areas in that 
     State divided by the total population of that State.
       ``(B) Remaining amounts.--Amounts remaining for each State 
     after apportionment under subparagraph (a) shall be 
     apportioned to that State and added to the amount made 
     available for grants under section 5311.
       ``(6) Apportionments among urbanized areas in each state.--
     The Secretary shall apportion amounts made available to 
     urbanized areas in each State under subsection (c)(5)(A) so 
     that each urbanized area receives an amount equal to the 
     amount apportioned under subsection (c)(5)(A) multiplied by a 
     ratio equal to the population of each urbanized area divided 
     by the sum of populations of all urbanized areas in the 
     State. Amounts apportioned to each urbanized area shall be 
     added to amounts apportioned to that urbanized area under 
     section 5336, and made available for grants under section 
     5307.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 53 is amended by adding at the end the following:

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

     SEC. 3039. JOB ACCESS AND REVERSE COMMUTE GRANTS.

       Section 3037 of the Federal Transit Act of 1998 (49 U.S.C. 
     5309 note) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``means an individual'' and inserting the 
     following: ``means--
       ``(A) an individual''; and
       (ii) by striking the period at the end and inserting ``; or
       ``(B) an individual who is eligible for assistance under 
     the State program of Temporary Assistance to Needy Families 
     funded under part A of title IV of the Social Security Act 
     (42 U.S.C. 601 et. seq.) in the State in which the recipient 
     of a grant under this section is located.''; and
       (B) in paragraph (2), by striking ``development of'' each 
     place it appears and inserting ``development and provision 
     of'';
       (2) in subsection (i), by amending paragraph (2) to read as 
     follows:
       ``(2) Coordination.--
       ``(A) In general.--The Secretary shall coordinate 
     activities under this section with related activities under 
     programs of other Federal departments and agencies.
       ``(B) Certification.--A recipient of funds under this 
     section shall certify that--
       ``(i) the project has been derived from a locally 
     developed, coordinated public transit human services 
     transportation plan; and
       ``(ii) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.'';
       (3) by amending subsection (j) to read as follows:
       ``(j) Grant Requirements.--
       ``(1) In general.--
       ``(A) Urbanized areas.--A grant awarded under this section 
     to a public agency or private company engaged in public 
     transportation in an urbanized area shall be subject to the 
     all of the terms and conditions to which a grant awarded 
     under section 5307 of title 49, United States Code, is 
     subject, to the extent the Secretary considers appropriate.
       ``(B) Other than urbanized areas.--A grant awarded under 
     this section to a public agency or a private company engaged 
     in public transportation in an area other than urbanized 
     areas shall be subject to all of the terms and conditions to 
     which a grant awarded under section 5311 of title 49, United 
     States Code, is subject, to the extent the Secretary 
     considers appropriate.
       ``(C) Nonprofit organizations.--A grant awarded under this 
     section to a private nonprofit organization shall be subject 
     to all of the terms and conditions to which a grant made 
     under section 5310 of title 49, United States Code, is 
     subject, to the extent the Secretary considers appropriate.
       ``(2) Special warranty.--
       ``(A) In general.--Section 5333(b) of title 49, United 
     States Code, shall apply to grants under this section if the 
     Secretary of Labor utilizes a Special Warranty that provides 
     a fair and equitable arrangement to protect the interests of 
     employees.
       ``(B) Waiver.--The Secretary may waive the applicability of 
     the Special Warranty under subparagraph (A) for private non-
     profit recipients on a case-by-case basis as the Secretary 
     considers appropriate.''; and
       (4) by striking subsections (k) and (l).

     SEC. 3040. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.

       (a) Section Heading.--The section heading for section 3038 
     of the Federal Transit Act of 1998 (49 U.S.C. 5310 note), is 
     amended to read as follows:

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

       (b) Funding.--Section 3038(g) of the Federal Transit Act of 
     1998 (49 U.S.C. 5310 note) is amended to read as follows:
       ``(g) Funding.--Of the amounts made available for each 
     fiscal year under subsections (a)(1)(C)(iii) and (b)(2)(E) of 
     section 5338 of title 49, United States Code--
       ``(1) 75 percent shall be available, and shall remain 
     available until expended, for operators of over-the-road 
     buses, used substantially or exclusively in intercity, fixed-
     route over-the-road bus service, to finance the incremental 
     capital and training costs of the Department of 
     Transportation's final rule regarding accessibility of over-
     the-road buses; and

[[Page 1207]]

       ``(2) 25 percent shall be available, and shall remain 
     available until expended, for operators of over-the-road bus 
     service not described in paragraph (1), to finance the 
     incremental capital and training costs of the Department of 
     Transportation's final rule regarding accessibility of over-
     the-road buses.''.
       (b) Conforming Amendment.--The item relating to section 
     3038 in the table of contents for the Transportation Equity 
     Act for the 21st Century (Public Law 105-178) is amended to 
     read as follows:

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

     SEC. 3041. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC 
                   LANDS.

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

     ``Sec. 5316. Alternative transportation in parks and public 
       lands

       ``(a) In General.--
       ``(1) Authorization.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, may award a grant or enter into a 
     contract, cooperative agreement, interagency agreement, 
     intraagency agreement, or other transaction to carry out a 
     qualified project under this section to enhance the 
     protection of America's National Parks and public lands and 
     increase the enjoyment of those visiting the parks and public 
     lands by ensuring access to all, including persons with 
     disabilities, improving conservation and park and public land 
     opportunities in urban areas through partnering with state 
     and local governments, and improving park and public land 
     transportation infrastructure.
       ``(B) Consultation with other agencies.--To the extent that 
     projects are proposed or funded in eligible areas that are 
     not within the jurisdiction of the Department of the 
     Interior, the Secretary of the Interior shall consult with 
     the heads of the relevant Federal land management agencies in 
     carrying out the responsibilities under this section.
       ``(2) Use of funds.--A grant, cooperative agreement, 
     interagency agreement, intraagency agreement, or other 
     transaction for a qualified project under this section shall 
     be available to finance the leasing of equipment and 
     facilities for use in public transportation, subject to any 
     regulation that the Secretary may prescribe limiting the 
     grant or agreement to leasing arrangements that are more 
     cost-effective than purchase or construction.
       ``(b) Definitions.--As used in this section, the following 
     definitions shall apply:
       ``(1) Eligible area.--The term `eligible area' means any 
     federally owned or managed park, refuge, or recreational area 
     that is open to the general public, including--
       ``(A) a unit of the National Park System;
       ``(B) a unit of the National Wildlife Refuge System;
       ``(C) a recreational area managed by the Bureau of Land 
     Management; and
       ``(D) a recreation area managed by the Bureau of 
     Reclamation.
       ``(2) Federal land management agency.--The term `Federal 
     land management agency' means a Federal agency that manages 
     an eligible area.
       ``(3) Alternative transportation.--The term `alternative 
     transportation' means transportation by bus, rail, or any 
     other publicly or privately owned conveyance that provides to 
     the public general or special service on a regular basis, 
     including sightseeing service.
       ``(4) Qualified participant.--The term `qualified 
     participant' means--
       ``(A) a Federal land management agency; or
       ``(B) a State, tribal, or local governmental authority with 
     jurisdiction over land in the vicinity of an eligible area 
     acting with the consent of the Federal land management 
     agency, alone or in partnership with a Federal land 
     management agency or other Governmental or nongovernmental 
     participant.
       ``(5) Qualified project.--The term `qualified project' 
     means a planning or capital project in or in the vicinity of 
     an eligible area that--
       ``(A) is an activity described in section 5302, 5303, 5304, 
     5308, or 5309(a)(1)(A);
       ``(B) involves--
       ``(i) the purchase of rolling stock that incorporates clean 
     fuel technology or the replacement of buses of a type in use 
     on the date of enactment of this section with clean fuel 
     vehicles; or
       ``(ii) the deployment of alternative transportation 
     vehicles that introduce innovative technologies or methods;
       ``(C) relates to the capital costs of coordinating the 
     Federal land management agency public transportation systems 
     with other public transportation systems;
       ``(D) provides a nonmotorized transportation system 
     (including the provision of facilities for pedestrians, 
     bicycles, and nonmotorized watercraft);
       ``(E) provides waterborne access within or in the vicinity 
     of an eligible area, as appropriate to and consistent with 
     this section; or
       ``(F) is any other alternative transportation project 
     that--
       ``(i) enhances the environment;
       ``(ii) prevents or mitigates an adverse impact on a natural 
     resource;
       ``(iii) improves Federal land management agency resource 
     management;
       ``(iv) improves visitor mobility and accessibility and the 
     visitor experience;
       ``(v) reduces congestion and pollution (including noise 
     pollution and visual pollution); or
       ``(vi) conserves a natural, historical, or cultural 
     resource (excluding rehabilitation or restoration of a non-
     transportation facility).
       ``(c) Federal Agency Cooperative Arrangements.--The 
     Secretary shall develop cooperative arrangements with the 
     Secretary of the Interior that provide for--
       ``(1) technical assistance in alternative transportation;
       ``(2) interagency and multidisciplinary teams to develop 
     Federal land management agency alternative transportation 
     policy, procedures, and coordination; and
       ``(3) the development of procedures and criteria relating 
     to the planning, selection, and funding of qualified projects 
     and the implementation and oversight of the program of 
     projects in accordance with this section.
       ``(d) Limitation on Use of Available Amounts.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, may use not more than 10 percent 
     of the amount made available for a fiscal year under section 
     5338(a)(2)(I) to carry out planning, research, and technical 
     assistance under this section, including the development of 
     technology appropriate for use in a qualified project.
       ``(2) Additional amounts.--Amounts made available under 
     this subsection are in addition to amounts otherwise 
     available to the Secretary to carry out planning, research, 
     and technical assistance under this title or any other 
     provision of law.
       ``(3) Maximum amount.--No qualified project shall receive 
     more than 12 percent of the total amount made available to 
     carry out this section under section 5338(a)(2)(I) for any 
     fiscal year.
       ``(e) Planning Process.--In undertaking a qualified project 
     under this section,
       ``(1) if the qualified participant is a Federal land 
     management agency--
       ``(A) the Secretary, in cooperation with the Secretary of 
     the Interior, shall develop transportation planning 
     procedures that are consistent with--
       ``(i) the metropolitan planning provisions under section 
     5303 of this title;
       ``(ii) the statewide planning provisions under section 5304 
     of this title; and
       ``(iii) the public participation requirements under section 
     5307(e); and
       ``(B) in the case of a qualified project that is at a unit 
     of the National Park system, the planning process shall be 
     consistent with the general management plans of the unit of 
     the National Park system; and
       ``(2) if the qualified participant is a State or local 
     governmental authority, or more than one State or local 
     governmental authority in more than one State, the qualified 
     participant shall--
       ``(A) comply with the metropolitan planning provisions 
     under section 5303 of this title;
       ``(B) comply with the statewide planning provisions under 
     section 5304 of this title;
       ``(C) comply with the public participation requirements 
     under section 5307(e) of this title; and
       ``(D) consult with the appropriate Federal land management 
     agency during the planning process.
       ``(f) Cost Sharing.--
       ``(1) The Secretary, in cooperation with the Secretary of 
     the Interior, shall establish the agency share of net project 
     cost to be provided under this section to a qualified 
     participant.
       ``(2) In establishing the agency share of net project cost 
     to be provided under this section, the Secretary shall 
     consider--
       ``(A) visitation levels and the revenue derived from user 
     fees in the eligible area in which the qualified project is 
     carried out;
       ``(B) the extent to which the qualified participant 
     coordinates with a public transportation authority or private 
     entity engaged in public transportation;
       ``(C) private investment in the qualified project, 
     including the provision of contract services, joint 
     development activities, and the use of innovative financing 
     mechanisms;
       ``(D) the clear and direct benefit to the qualified 
     participant; and
       ``(E) any other matters that the Secretary considers 
     appropriate to carry out this section.
       ``(3) Notwithstanding any other provision of law, Federal 
     funds appropriated to any Federal land management agency may 
     be counted toward the non-agency share of the net project 
     cost of a qualified project.
       ``(g) Selection of Qualified Projects.--
       ``(1) The Secretary of the Interior, after consultation 
     with and in cooperation with the Secretary, shall determine 
     the final selection and funding of an annual program of 
     qualified projects in accordance with this section.
       ``(2) In determining whether to include a project in the 
     annual program of qualified projects, the Secretary of the 
     Interior shall consider--
       ``(A) the justification for the qualified project, 
     including the extent to which the qualified project would 
     conserve resources, prevent or mitigate adverse impact, and 
     enhance the environment;

[[Page 1208]]

       ``(B) the location of the qualified project, to ensure that 
     the selected qualified projects--
       ``(i) are geographically diverse nationwide; and
       ``(ii) include qualified projects in eligible areas located 
     in both urban areas and rural areas;
       ``(C) the size of the qualified project, to ensure that 
     there is a balanced distribution;
       ``(D) the historical and cultural significance of a 
     qualified project;
       ``(E) safety;
       ``(F) the extent to which the qualified project would-
       ``(i) enhance livable communities;
       ``(ii) reduce pollution (including noise pollution, air 
     pollution, and visual pollution);
       ``(iii) reduce congestion; and
       ``(iv) improve the mobility of people in the most efficient 
     manner; and
       ``(G) any other matters that the Secretary considers 
     appropriate to carry out this section, including-
       ``(i) visitation levels;
       ``(ii) the use of innovative financing or joint development 
     strategies; and
       ``(iii) coordination with gateway communities.
       ``(h) Qualified Projects Carried Out in Advance.--
       ``(1) When a qualified participant carries out any part of 
     a qualified project without assistance under this section in 
     accordance with all applicable procedures and requirements, 
     the Secretary, in consultation with the Secretary of the 
     Interior, may pay the share of the net capital project cost 
     of a qualified project if--
       ``(A) the qualified participant applies for the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out that part of the qualified 
     project, the Secretary approves the plans and specifications 
     in the same manner as plans and specifications are approved 
     for other projects assisted under this section.
       ``(2)(A) The cost of carrying out part of a qualified 
     project under paragraph (1) includes the amount of interest 
     earned and payable on bonds issued by a State or local 
     governmental authority, to the extent that proceeds of the 
     bond are expended in carrying out that part.
       ``(B) The rate of interest under this paragraph may not 
     exceed the most favorable rate reasonably available for the 
     qualified project at the time of borrowing.
       ``(C) The qualified participant shall certify, in a manner 
     satisfactory to the Secretary, that the qualified participant 
     has exercised reasonable diligence in seeking the most 
     favorable interest rate.
       ``(i) Relationship to Other Laws.--
       ``(1) Section 5307.--A qualified participant under this 
     section shall be subject to the requirements of sections 5307 
     and 5333(a) to the extent the Secretary determines to be 
     appropriate.
       ``(2) Other requirements.--A qualified participant under 
     this section is subject to any other terms, conditions, 
     requirements, and provisions that the Secretary determines to 
     be appropriate to carry out this section, including 
     requirements for the distribution of proceeds on disposition 
     of real property and equipment resulting from a qualified 
     project assisted under this section.
       ``(3) Project management plan.--If the amount of assistance 
     anticipated to be required for a qualified project under this 
     section is not less than $25,000,000--
       ``(A) the qualified project shall, to the extent the 
     Secretary considers appropriate, be carried out through a 
     full funding grant agreement, in accordance with section 
     5309(g); and
       ``(B) the qualified participant shall prepare a project 
     management plan in accordance with section 5327(a).
       ``(i) Asset Management.--The Secretary, in consultation 
     with the Secretary of the Interior, may transfer the interest 
     of the Department of Transportation in, and control over, all 
     facilities and equipment acquired under this section to a 
     qualified participant for use and disposition in accordance 
     with any property management regulations that the Secretary 
     determines to be appropriate.
       ``(j) Coordination of Research and Deployment of New 
     Technologies.--
       ``(1) The Secretary, in cooperation with the Secretary of 
     the Interior, may undertake, or make grants, cooperative 
     agreements, contracts (including agreements with departments, 
     agencies, and instrumentalities of the Federal Government) or 
     other transactions for research, development, and deployment 
     of new technologies in eligible areas that will--
       ``(A) conserve resources;
       ``(B) prevent or mitigate adverse environmental impact;
       ``(C) improve visitor mobility, accessibility, and 
     enjoyment; and
       ``(D) reduce pollution (including noise pollution and 
     visual pollution).
       ``(2) The Secretary may request and receive appropriate 
     information from any source.
       ``(3) Grants, cooperative agreements, contracts or other 
     transactions under paragraph (1) shall be awarded from 
     amounts allocated under subsection (c)(1).
       ``(k) Innovative Financing.--A qualified project receiving 
     financial assistance under this section shall be eligible for 
     funding through a state infrastructure bank or other 
     innovative financing mechanism available to finance an 
     eligible project under this chapter.
       ``(l) Reports.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall annually submit a report on 
     the allocation of amounts made available to assist qualified 
     projects under this section to--
       ``(A) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(B) the Committee on Transportation and Infrastructure of 
     the House of Representatives.
       ``(2) Annual and supplemental reports.--The report required 
     under paragraph (1) shall be included in the report submitted 
     under section 5309(m).''.
       (b) Conforming Amendments.--The table of sections for 
     chapter 53 is amended by inserting after the item relating to 
     section 5315 the following:

``5316. Alternative transportation in parks and public lands.''.

     SEC. 3042. OBLIGATION CEILING.

       Notwithstanding any other provision of law, the total of 
     all obligations from amounts made available from the Mass 
     Transit Account of the Highway Trust Fund by, and amounts 
     appropriated under, subsections (a) through (c) of section 
     5338 of title 49, United States Code, shall not exceed--
       (1) $7,265,876,900 for fiscal year 2004;
       (2) $8,650,000,000 for fiscal year 2005;
       (3) $9,085,123,000 for fiscal year 2006;
       (4) $9,600,000,000 for fiscal year 2007;
       (5) $10,490,000,000 for fiscal year 2008; and
       (6) $11,430,000,000 for fiscal year 2009.

     SEC. 3043. ADJUSTMENTS FOR THE SURFACE TRANSPORTATION 
                   EXTENSION ACT OF 2003.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary shall reduce the total apportionments and 
     allocations made for fiscal year 2004 to each grant recipient 
     under section 5338 of title 49, United States Code, by the 
     amount apportioned to that recipient pursuant to section 8 of 
     the Surface Transportation Extension Act of 2003 (117 Stat. 
     1121).
       (b) Fixed Guideway Modernization Adjustment.--In making the 
     apportionments described in subsection (a), the Secretary 
     shall adjust the amount apportioned for fiscal year 2004 to 
     each urbanized area for fixed guideway modernization to 
     reflect the apportionment method set forth in 5337(a) of 
     title 49, United States Code.
                                 ______
                                 
  SA 2270. Ms. COLLINS submitted an amendment intended to be proposed 
by her to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following new section:

     SEC. __. FUNDS FOR REBUILDING FISH STOCKS.

       Section 105 of the Miscellaneous Appropriations and Offsets 
     Act, 2004 (division H of the Consolidated Appropriations Act, 
     2004) is repealed.
                                 ______
                                 
  SA 2271. Mr. VOINOVICH submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 806, strike line 5 and insert the following:

     SEC. 1514. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL 
                   REFUGES, AND HISTORIC SITES.

       (a) Programs and Projects With De Minimis Impacts.--
       (1) Title 23.--Section 138 of title 23, United States Code, 
     is amended--
       (A) in the first sentence, by striking ``It is hereby'' and 
     inserting the following:
       ``(a) Declaration of Policy.--It is''; and
       (B) by adding at the end the following:
       ``(b) De Minimis Impacts.--
       ``(1) Requirements.--
       ``(A) In general.--The requirements of this section shall 
     be considered to be satisfied with respect to an area 
     described in paragraph (2) or (3) if the Secretary 
     determines, in accordance with this subsection, that a 
     transportation program or project will have a de minimis 
     impact on the area.
       ``(B) Criteria.--In making any determination under this 
     subsection, the Secretary shall consider to be part of a 
     transportation program or project any avoidance, 
     minimization, mitigation, or enhancement measures that are 
     required to be implemented as a condition of approval of the 
     transportation program or project.
       ``(2) Historic sites.--With respect to historic sites, the 
     Secretary may make a finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     consultation process required under section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f), that--

[[Page 1209]]

       ``(i) the transportation program or project will have no 
     adverse effect on the historic site; or
       ``(ii) there will be no historic properties affected by the 
     transportation program or project;
       ``(B) the finding of the Secretary has received written 
     concurrence from the applicable State historic preservation 
     officer or tribal historic preservation officer (and from the 
     Advisory Council on Historic Preservation, if participating 
     in the consultation); and
       ``(C) the finding of the Secretary has been developed in 
     consultation with parties consulting as part of the process 
     referred to in subparagraph (A).
       ``(3) Parks, recreation areas, and wildlife and waterfowl 
     refuges.--With respect to parks, recreation areas, or 
     wildlife or waterfowl refuges, the Secretary may make a 
     finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) (including public notice and opportunity for public 
     review and comment), that the transportation program or 
     project will not adversely affect the activities, features, 
     and attributes of the park, recreation area, or wildlife or 
     waterfowl refuge eligible for protection under this title; 
     and
       ``(B) the finding of the Secretary has received concurrence 
     from the officials with jurisdiction over the park, 
     recreation area, or wildlife or waterfowl refuge.''.
       (2) Title 49.--Section 303 of title 49, United States Code, 
     is amended--
       (A) by striking ``(c) The Secretary'' and inserting the 
     following:
       ``(c) Approval of Programs and Projects.--Subject to 
     subsection (d), the Secretary''; and
       (B) by adding at the end the following:
       ``(d) De Minimis Impacts.--
       ``(1) Requirements.--
       ``(A) In general.--The requirements of this section shall 
     be considered to be satisfied with respect to an area 
     described in paragraph (2) or (3) if the Secretary 
     determines, in accordance with this subsection, that a 
     transportation program or project will have a de minimis 
     impact on the area.
       ``(B) Criteria.--In making any determination under this 
     subsection, the Secretary shall consider to be part of a 
     transportation program or project any avoidance, 
     minimization, mitigation, or enhancement measures that are 
     required to be implemented as a condition of approval of the 
     transportation program or project.
       ``(2) Historic sites.--With respect to historic sites, the 
     Secretary may make a finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     consultation process required under section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f), that--
       ``(i) the transportation program or project will have no 
     adverse effect on the historic site; or
       ``(ii) there will be no historic properties affected by the 
     transportation program or project;
       ``(B) the finding of the Secretary has received written 
     concurrence from the applicable State historic preservation 
     officer or tribal historic preservation officer (and from the 
     Advisory Council on Historic Preservation, if participating 
     in the consultation); and
       ``(C) the finding of the Secretary has been developed in 
     consultation with parties consulting as part of the process 
     referred to in subparagraph (A).
       ``(3) Parks, recreation areas, and wildlife and waterfowl 
     refuges.--With respect to parks, recreation areas, or 
     wildlife or waterfowl refuges, the Secretary may make a 
     finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) (including public notice and opportunity for public 
     review and comment), that the transportation program or 
     project will not adversely affect the activities, features, 
     and attributes of the park, recreation area, or wildlife or 
     waterfowl refuge eligible for protection under this title; 
     and
       ``(B) the finding of the Secretary has received concurrence 
     from the officials with jurisdiction over the park, 
     recreation area, or wildlife or waterfowl refuge.''.
       (b) Clarification of Existing Standards.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall (in consultation 
     with affected agencies and interested parties) promulgate 
     regulations that clarify the factors to be considered and the 
     standards to be applied in determining the prudence and 
     feasibility of alternatives under section 138 of title 23 and 
     section 303 of title 49, United States Code.
       (2) Requirements.--The regulations--
       (A) shall clarify the application of the legal standards to 
     a variety of different types of transportation programs and 
     projects depending on the circumstances of each case; and
       (B) may include, as appropriate, examples to facilitate 
     clear and consistent interpretation by agency decisionmakers.
       (c) Implementation Study.--
       (1) In general.--The Secretary and the Transportation 
     Research Board of the National Academy of Sciences shall 
     jointly conduct a study on the implementation of this section 
     and the amendments made by this section.
       (2) Components.--In conducting the study, the Secretary and 
     the Transportation Research Board shall evaluate--
       (A) the processes developed under this section and the 
     amendments made by this section and the efficiencies that may 
     result;
       (B) the post-construction effectiveness of impact 
     mitigation and avoidance commitments adopted as part of 
     projects conducted under this section and the amendments made 
     by this section; and
       (C) the quantity of projects with impacts that are 
     considered de minimis under this section and the amendments 
     made by this section, including information on the location, 
     size, and cost of the projects.
       (3) Report requirement.--The Secretary and the 
     Transportation Research Board shall prepare--
       (A) not earlier than the date that is 4 years after the 
     date of enactment of this Act, a report on the results of the 
     study conducted under this subsection; and
       (B) not later than September 30, 2009, an update on the 
     report required under subparagraph (A).
       (4) Report recipients.--The Secretary and the 
     Transportation Research Board shall--
       (A) submit the report and update required under paragraph 
     (3) to--
       (i) the appropriate committees of Congress;
       (ii) the Secretary of the Interior; and
       (iii) the Advisory Council on Historic Preservation; and
       (B) make the report and update available to the public.

     SEC. 1515. REGULATIONS.

                          ____________________