[Congressional Record (Bound Edition), Volume 150 (2004), Part 1]
[Senate]
[Pages 740-867]
[From the U.S. Government Publishing Office, www.gpo.gov]




SAFE, ACCOUNTABLE, FLEXIBLE, AND EFFICIENT TRANSPORTATION EQUITY ACT OF 
                                  2003

  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1072) to authorize funds for Federal-aid 
     highways, highway safety programs, and transit programs, and 
     for other purposes.

  The Senate proceeded to consider the bill which had been reported 
from the Committee on Environment and Public Works, with an amendment 
to strike all after the enacting clause and inserting in lieu thereof 
the following:

  (Strike the part shown in black brackets and insert the part shown in 
Italic.)

                                S. 1072

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     [SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       [(a) Short Title.--This Act may be cited as the ``Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003''.
       [(b) Table of Contents.--The table of contents of this Act 
     is as follows:

[Sec. 1. Short title; table of contents.
[Sec. 2. Definitions.

                     [TITLE I--FEDERAL-AID HIGHWAYS

                          [Subtitle A--Funding

[Sec. 1101. Authorization of appropriations.
[Sec. 1102. Obligation ceiling.
[Sec. 1103. Apportionments.
[Sec. 1104. Minimum guarantee.
[Sec. 1105. Revenue aligned budget authority.

                       [Subtitle B--New Programs

[Sec. 1201. Infrastructure performance and maintenance program.
[Sec. 1202. Clarify federal-aid eligibility for certain security 
              projects.
[Sec. 1203. Future of the Interstate Highway System.
[Sec. 1204. Military vehicle access (oversize and overweight vehicles; 
              --relief from tolls).
[Sec. 1205. Freight transportation gateways; freight intermodal 
              connections.
[Sec. 1206. Authority for alternative time-saving procedures for --
              critical transportation security projects.

                          [Subtitle C--Finance

[Sec. 1301. Federal share.
[Sec. 1302. Transfer of highway and transit funds.
[Sec. 1303. State infrastructure bank pilot program.
[Sec. 1304. Transportation Infrastructure Finance and Innovation Act --
              (TIFIA) Amendments.
[Sec. 1305. International registration plan and international fuel tax 
              agreement facilitation.
[Sec. 1306. Commercialized rest area pilot projects.
[Sec. 1307. Highway use tax evasion projects.

       [Subtitle D--Program Efficiencies and Improvements--Safety

[Sec. 1401. National highway safety goal; national Blue Ribbon 
              Commission on Highway Safety.
[Sec. 1402. Highway Safety Improvement Program.
[Sec. 1403. Operation lifesaver.
[Sec. 1404. Highway safety programs; certification of public road 
              mileage.

      [Subtitle E--Program Efficiencies and Improvements--Planning

[Sec. 1501. Metropolitan planning.
[Sec. 1502. Statewide planning.
[Sec. 1503. State planning and research.
[Sec. 1504. Critical real property acquisition.
[Sec. 1505. Planning capacity building initiative.

    [Subtitle F--Program Efficiencies and Improvements--Environment

[Sec. 1601. Congestion Mitigation and Air Quality Improvement Program.

The Senate proceeded to consider the bill.
[Sec. 1602. Efficient environmental reviews for project decisionmaking.
[Sec. 1603. Assumption of responsibility for categorical exclusions.
[Sec. 1604. Section 4(f) policy on lands, wildlife and waterfowl 
              refuges, and historic sites.
[Sec. 1605. National Scenic Byways Program.
[Sec. 1606. Recreational Trails Program.
[Sec. 1607. Exemption of the Interstate System.
[Sec. 1608. Modifications to NHS/STP for invasive species, wetlands, 
              brownfields, and environmental restoration.
[Sec. 1609. Standards.
[Sec. 1610. Use of HOV lanes.
[Sec. 1611. Bicycle transportation and pedestrian walkways.
[Sec. 1612. Transportation, energy, and environment.
[Sec. 1613. Idling reduction facilities in interstate rights-of-way.
[Sec. 1614. Appropriation for transportation purposes of lands or 
              interest in lands owned by the United States.
[Sec. 1615. Toll programs.
[Sec. 1616. Ozone standards, particulate matter standards, and regional 
              haze program.
[Sec. 1617. Indemnification on certain railbanked projects.

    [Subtitle G.--Program Efficiencies and Improvements--Operations

[Sec. 1701. Transportation systems management and operations.
[Sec. 1702. Real-Time System Management Information Program.
[Sec. 1703. Intelligent transportation systems performance incentive 
              program.
[Sec. 1704. Commercial vehicle information systems and networks 
              deployment.

    [Subtitle H--Program Efficiencies and Improvements--Federal-Aid 
                              Stewardship

[Sec. 1801. Surface Transportation System Performance Pilot Program.
[Sec. 1802. Stewardship and oversight.
[Sec. 1803. Emergency relief.
[Sec. 1804. Federal Lands Highways Program.
[Sec. 1805. Appalachian Development Highway System.
[Sec. 1806. Multi-State Corridor Planning Program.
[Sec. 1807. Border Planning, Operations, and Technology Program.
[Sec. 1808. Territorial Highway Program amendments.
[Sec. 1809. Future interstate system routes.
[Sec. 1810. Donations and credits.
[Sec. 1811. Disadvantaged business enterprises.
[Sec. 1812. Highway Bridge Program.
[Sec. 1813. Design-build.
[Sec. 1814. International ferries.
[Sec. 1815. Assumption of responsibility for transportation 
              enhancements, recreational trails, and Transportation and 
              Community and System Preservation Program projects.
[Sec. 1816. Transportation, Community, and System Preservation Program.
[Sec. 1817. Program efficiencies--Finance.

         [Subtitle I--Technical Corrections to Title 23, U.S.C.

[Sec. 1901. Repeal or update of obsolete text.
[Sec. 1902. Clarification of date.
[Sec. 1903. Inclusion of requirements for signs identifying funding 
              sources in title 23.
[Sec. 1904. Inclusion of ``Buy America'' requirements in title 23.

[[Page 741]]

[Sec. 1905. Technical amendments to 23 U.S.C. 140--Nondiscrimination.
[Sec. 1906. Federal share payable for projects for elimination of 
              hazards of railway-highway crossings.

                       [TITLE II--HIGHWAY SAFETY

[Sec. 2001. Highway safety programs.
[Sec. 2002. Highway safety research and development.
[Sec. 2003. Emergency medical services.
[Sec. 2004. State traffic safety information system improvements.
[Sec. 2005. Authorization of appropriations.
[Sec. 2006. Repeal of obsolete provisions of title 23.

          [TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

[Sec. 3001. Short title.
[Sec. 3002. Updated terminology; amendments to title 49, United States 
              Code.
[Sec. 3003. Policies, findings, and purposes.
[Sec. 3004. Definitions.
[Sec. 3005. Metropolitan planning.
[Sec. 3006. Statewide planning.
[Sec. 3007. Planning programs.
[Sec. 3008. Private enterprise participation.
[Sec. 3009. Urbanized Area Public Transportation Formula Grants 
              Program.
[Sec. 3010. Formula grants for other than urbanized areas.
[Sec. 3011. New Freedom program.
[Sec. 3012. Major capital investment program.
[Sec. 3013. Research, development, demonstration, and deployment 
              projects.
[Sec. 3014. Cooperative research grant program.
[Sec. 3015. National research programs.
[Sec. 3016. National Transit Institute.
[Sec. 3017. Bus testing facility.
[Sec. 3018. Bicycle facilities.
[Sec. 3019. Suspended light rail technology pilot project.
[Sec. 3020. General provisions on assistance.
[Sec. 3021. Special provisions for capital projects.
[Sec. 3022. Contract requirements.
[Sec. 3023. Human resources programs.
[Sec. 3024. Project management oversight and review.
[Sec. 3025. Project review.
[Sec. 3026. Investigations of safety and security risk.
[Sec. 3027. State safety oversight.
[Sec. 3028. Sensitive security information.
[Sec. 3029. Terrorist attacks and other acts of violence against public 
              transportation systems.
[Sec. 3030. Controlled substances and alcohol misuse testing.
[Sec. 3031. Employee protective arrangements.
[Sec. 3032. Administrative procedures.
[Sec. 3033. Reports and audits.
[Sec. 3034. Apportionments of appropriations for formula grants.
[Sec. 3035. Apportionments based on fixed guideway factors.
[Sec. 3036. Authorizations.
[Sec. 3037. National parks and public lands legacy project.
[Sec. 3038. Over-the-road bus accessibility program.
[Sec. 3039. Formula grants for special needs of elderly individuals and 
              individuals with disabilities.
[Sec. 3040. Job access and reverse commute.

                    [TITLE IV--MOTOR CARRIER SAFETY

[Sec. 4001. Authorization of appropriations.
[Sec. 4002. Motor carrier safety grants.
[Sec. 4003. Hobbs Act.
[Sec. 4004. Penalty for denial of access to records.
[Sec. 4005. Medical review board and medical examiners.
[Sec. 4006. Enforcement of household goods regulations.
[Sec. 4007. Registration of commercial motor carriers, freight 
              forwarders, and brokers.
[Sec. 4008. Financial responsibility for private motor carriers.
[Sec. 4009. Increased penalties for out-of-service violations and false 
              records.
[Sec. 4010. Elimination of commodity and service exemptions.
[Sec. 4011. Intrastate operations of interstate motor carriers.
[Sec. 4012. Authority to stop commercial motor vehicles.
[Sec. 4013. Pattern of safety violations by motor carrier management.
[Sec. 4014. Motor carrier research and technology program.
[Sec. 4015. International cooperation.
[Sec. 4016. Performance and Registration Information System Management 
              (PRISM).
[Sec. 4017. Information systems and data analysis.
[Sec. 4018. Outreach and education.

            [TITLE V--TRANSPORTATION RESEARCH AND EDUCATION

                          [Subtitle A--Funding

[Sec. 5101. Authorization of appropriations.

            [Subtitle B--Research, Technology, and Education

[Sec. 5201. Research, technology, and education.
[Sec. 5202. Surface transportation environment and planning cooperative 
              research program.
[Sec. 5203. Long-term bridge performance program; innovative bridge 
              research and deployment program.
[Sec. 5204. Technology deployment.
[Sec. 5205. Training and education.
[Sec. 5206. Advanced travel forecasting procedures program.

  [Subtitle C--Multimodal Research Programs; Scholarship Opportunities

[Sec. 5301. University transportation research.
[Sec. 5302. Multimodal research program.
[Sec. 5303. Commercial remote sensing products.
[Sec. 5304. Transportation scholarship opportunities program.

             [Subtitle D--Transportation Data and Analysis

[Sec. 5401. Bureau of transportation statistics.

        [Subtitle E--Intelligent Transportation Systems Research

[Sec. 5501. Short title.
[Sec. 5502. Goals and purposes.
[Sec. 5503. General authorities and requirements.
[Sec. 5504. National architecture and standards.
[Sec. 5505. Research and development.
[Sec. 5506. Use of funds.
[Sec. 5507. Definitions.
[Sec. 5508. Repeal.

       [TITLE VI--TRANSPORTATION PLANNING; INTERMODAL FACILITIES

[Sec. 6001. Transportation planning.
[Sec. 6002. Intermodal passenger facilities.

                       [TITLE VII--MISCELLANEOUS

                         [Subtitle A--Railroads

[Sec. 7101. Rail corridor planning.
[Sec. 7102. High speed rail authorizations.

      [Subtitle B--Miscellaneous Technical Corrections to Title 49

[Sec. 7201. Correction of obsolete references to Interstate Commerce 
              Commission.

             [Subtitle C--Hazardous Material Transportation

[Sec. 7301. Definitions.
[Sec. 7302. Representations and tampering with hazardous material- 
              packaging.
[Sec. 7303. Hazardous material transportation safety and security.
[Sec. 7304. Administrative authority for transportation service and --
              infrastructure assurance research.
[Sec. 7305. Postal Service Civil Penalty Authority.
[Sec. 7306. Registration.
[Sec. 7307. Shipping paper retention.
[Sec. 7308. Planning and training grants.
[Sec. 7309. Enforcement.
[Sec. 7310. Penalties.
[Sec. 7311. Emergency waiver of preemption.
[Sec. 7312. Judicial review.

               [Subtitle D--Sanitary Food Transportation

[Sec. 7401. Short title.
[Sec. 7402. Responsibilities of the Secretary of Health and Human 
              Services.
[Sec. 7403. Department of Transportation Requirements.
[Sec. 7404. Effective date of the subtitle.

             [Subtitle E--Sport Fishing and Boating Safety

[Sec. 7501. Sport fish restoration account amendments.

[TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

[Sec. 8101. Discretionary spending categories.
[Sec. 8102. Level of obligation limitations.
[Sec. 8103. Effectiveness of title.

         [TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

[Sec. 9001. Short title; amendment of 1986 Code.
[Sec. 9002. Extension of highway-related taxes and trust fund.
[Sec. 9003. Extension of tax benefits for alcohol fuels.
[Sec. 9004. Private activity bonds for surface transportation 
              infrastructure.
[Sec. 9005. All alcohol fuel taxes transferred to highway trust fund.
[Sec. 9006. Transfer from highway trust fund to boat safety account.
[Sec. 9007. Extension of small-engine fuel taxes transferred to sport -
              -fish restoration account.
[Sec. 9008. Technical correction.
[Sec. 9009. Transfer by registered pipeline, vessel, or barge required 
              for fuel tax exemption of bulk transfers to registered 
              terminals or refineries; display of registration 
              requirement.
[Sec. 9010. Returns filed electronically.
[Sec. 9011. Civil penalty for refusal of entry.
[Sec. 9012. Requirement of tax payment decal; elimination of 
              installment payments of highway use tax.
[Sec. 9013. Additional rules regarding inspections of records.-

     [SEC. 2. DEFINITIONS.

       [In this Act, the following definitions apply:

[[Page 742]]

       [(1) Metropolitan planning organization.--The term 
     ``metropolitan planning organization'' has the meaning such 
     term has under section 5203(b) of title 49, United States 
     Code, as added by section 6001 of this Act.
       [(2) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       [(3) Transportation equity act for the 21st century.--The 
     term ``Transportation Equity Act for the 21st Century'' means 
     the Transportation Equity Act for the 21st Century, Public 
     Law 105-178, as amended by the TEA 21 Restoration Act, title 
     IX of Public Law 105-206.

                     [TITLE I--FEDERAL-AID HIGHWAYS

                          [Subtitle A--Funding

     [SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

       [(a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       [(1) Interstate maintenance program.--For the Interstate 
     maintenance program under section 119 of title 23, United 
     States Code, $4,100,000,000 for fiscal years 2004 and 2005, 
     $4,200,000,000 for fiscal year 2006, $4,400,000,000 for 
     fiscal year 2007, $4,500,000,000 for fiscal year 2008, and 
     $4,700,000,000 for fiscal year 2009.
       [(2) National highway system.--For the National Highway 
     System under section 103 of such title $5,000,000,000 for 
     fiscal years 2004 and 2005, $5,100,000,000 for fiscal year 
     2006, $5,200,000,000 for fiscal year 2007, $5,400,000,000 for 
     fiscal year 2008, and $5,500,000,000 for fiscal year 2009.
       [(3) Bridge program.--For the bridge program under section 
     144 of such title $3,400,000,000 for fiscal year 2004, 
     $3,500,000,000 for fiscal year 2005, $3,700,000,000 for 
     fiscal year 2006, $3,800,000,000 for fiscal year 2007, 
     $3,900,000,000 for fiscal year 2008, and $4,000,000,000 for 
     fiscal year 2009.
       [(4) Surface transportation program.--For the surface 
     transportation program under section 133 of such title 
     $5,102,000,000 for fiscal year 2004, $5,202,000,000 for 
     fiscal year 2005, $5,402,000,000 for fiscal year 2006, 
     $5,514,000,000 for fiscal year 2007, $5,714,000,000 for 
     fiscal year 2008, and $5,807,000,000 for fiscal year 2009.
       [(5) Congestion mitigation and air quality improvement 
     program.--For the congestion mitigation and air quality 
     improvement program under section 149 of such title 
     $1,100,000,000 for fiscal year 2004, $1,462,000,000 for 
     fiscal year 2005, $1,500,000,000 for fiscal year 2006, 
     $1,600,000,000 for fiscal years 2007 through 2009.
       [(6) Highway safety improvement program.--For the highway 
     safety improvement program under section 150 of such title 
     $1,000,000,000 for fiscal year 2004, $1,100,000,000 for 
     fiscal year 2005, $1,200,000,000 for fiscal year 2006, 
     $1,300,000,000 for fiscal year 2007, $1,400,000,000 for 
     fiscal year 2008, and $1,500,000,000 for fiscal year 2009.
       [(7) Appalachian development highway system program.--For 
     the Appalachian development highway system program under 
     section 201 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) $450,000,000 for each of fiscal years 
     2004 through 2009.
       [(8) Recreational trails program.--For the recreational 
     trails program under section 206 of such title $60,000,000 
     for each of fiscal years 2004 through 2009.
       [(9) Federal lands highways program.--
       [(A) Indian reservation roads.--For Indian reservation 
     roads under section 204 of such title $333,000,000 for each 
     of fiscal years 2004 through 2009.
       [(B) Recreation roads.--For recreation roads under section 
     204 of such title $50,000,000 for each of fiscal years 2004 
     through 2009.
       [(C) Park roads and parkways.--For park roads and parkways 
     under section 204 of such title, $300,000,000 for fiscal year 
     2004, $310,000,000 for fiscal year 2005, and $320,000,000 for 
     each of fiscal years 2006 through 2009.
       [(D) Refuge roads.--For refuge roads under section 204 of 
     such title $30,000,000 for each of fiscal years 2004 through 
     2009.
       [(E) Forest highways.--For forest highways under section 
     204 of such title $200,000,000 for each of fiscal years 2004 
     through 2009.
       [(F) Safety.--For safety under section 204 of such title 
     $40,000,000 for each of fiscal years 2004 through 2009.
       [(10) Multi-state corridor planning program.--For the 
     multi-state corridor planning program under section 1806 of 
     this Act $76,500,000 for fiscal year 2004 and $84,000,000 for 
     each of fiscal years 2005 through 2009.
       [(11) Border planning, operations, and technology 
     program.--For the border planning, operations, and technology 
     program under section 1807 of this Act $76,500,000 for fiscal 
     year 2004 and $84,000,000 for each of fiscal years 2005 
     through 2009.
       [(12) National scenic byways program.--For the national 
     scenic byways program under section 162 of title 23, United 
     States Code, $31,500,000 for each of fiscal years 2004 
     through 2009.
       [(13) Intelligent transportation systems performance 
     incentive program.--For carrying out the intelligent 
     transportation systems performance incentive program under 
     section 1703 of this Act, $135,000,000 for each of fiscal 
     years 2004 through 2009.
       [(14) Highway use tax evasion projects.--For highway use 
     tax evasion projects under section 143 of such title, 
     $26,550,000 for fiscal year 2004, $54,500,000 for each of 
     fiscal years 2005 and 2006, $44,500,000 for fiscal year 2007, 
     and $11,000,000 for each of fiscal years 2008 and 2009.
       [(15) Commercial vehicle information systems and networks 
     deployment.--For carrying out the Commercial Vehicle 
     Information Systems and Networks Deployment program under 
     section 1704 of this Act, $25,000,000 for each of fiscal 
     years 2004 through 2009.
       [(16) Infrastructure performance and maintenance program.--
     For carrying out the infrastructure performance and 
     maintenance program under section 1201 of this Act, 
     $1,000,000,000 for each of fiscal years 2004 through 2009.

     [SEC. 1102. OBLIGATION CEILING.

       [(a) General Limitation.--Notwithstanding any other 
     provision of law, but subject to subsections (f) and (g), the 
     obligations for Federal-aid highway and highway safety 
     construction programs shall not exceed--
       [(1) $29,293,948,000 for fiscal year 2004;
       [(2) $30,265,000,000 for fiscal year 2005;
       [(3) $31,326,000,000 for fiscal year 2006;
       [(4) $32,257,000,000 for fiscal year 2007;
       [(5) $33,104,000,000 for fiscal year 2008; and
       [(6) $33,903,000,000 for fiscal year 2009.
       [(b) Exceptions.--The limitations under subsection (a) 
     shall not apply to obligations under--
       [(1) section 125 of title 23, United States Code;
       [(2) section 147 of the Surface Transportation Assistance 
     Act of 1978;
       [(3) section 9 of the Federal-Aid Highway Act of 1981;
       [(4) sections 131(b) and 131(j) of the Surface 
     Transportation Assistance Act of 1982;
       [(5) sections 149(b) and 149(c) of the Surface 
     Transportation and Uniform Relocation Assistance Act of 1987;
       [(6) sections 1103 through 1108 of the Intermodal Surface 
     Transportation Efficiency Act of 1991;
       [(7) section 157 of title 23, United States Code, as in 
     effect on the day before the date of enactment of the 
     Transportation Equity Act for the 21st Century;
       [(8) section 105 of title 23, United States Code (but, for 
     each of fiscal years 2004 through 2009), only in an amount 
     equal to $639,000,000 per fiscal year; and
       [(9) for Federal-aid highway programs for which obligation 
     authority was made available under the Transportation Equity 
     Act for the 21st Century or subsequent public laws for 
     multiple years or to remain available until used, but only to 
     the extent that such obligation authority has not lapsed or 
     been used.
       [(c) Distribution of Obligation Authority.--For each of 
     fiscal years 2004 through 2009, the Secretary shall--
       [(1) reserve obligation authority provided by subsection 
     (a) for such fiscal year for amounts authorized for 
     administrative expenses, programs funded from the 
     administrative takedown authorized by section 104(a) of title 
     23, United States Code, the infrastructure performance and 
     maintenance program, and for each of the programs that are 
     allocated by the Secretary under this Act and title 23, 
     United States Code;
       [(2) reserve the obligation authority provided by 
     subsection (a) less the amounts reserved under paragraph (1) 
     for section 201 of the Appalachian Regional Development Act 
     of 1965, and $2,000,000,000 for such fiscal year under 
     section 105 of such title (relating to minimum guarantee); 
     and
       [(3) distribute the obligation authority provided by 
     subsection (a) less the aggregate amounts not reserved under 
     paragraph (1) and (2) for Federal-aid highway and highway 
     safety construction programs (other than the minimum 
     guarantee program, but only to the extent that amounts 
     apportioned for the minimum guarantee program for such fiscal 
     year exceed $2,639,000,000, and the Appalachian development 
     highway system program) that are apportioned by the Secretary 
     under this Act and title 23, United States Code, in the ratio 
     that--
       [(A) sums authorized to be appropriated for such programs 
     that are apportioned to each State for such fiscal year, bear 
     to
       [(B) the total of the sums authorized to be appropriated 
     for such programs that are apportioned to all States for such 
     fiscal year.
       [(d) Redistribution of Unused Obligation Authority.--
     Notwithstanding subsection (c), the Secretary shall, after 
     August 1 of each of fiscal years 2004 through 2009, revise a 
     distribution of the obligation authority made available under 
     subsection (c) if a State will not obligate the amount 
     distributed during that fiscal year and redistribute 
     sufficient amounts to those States able to obligate amounts 
     in addition to those previously distributed during that 
     fiscal year, giving priority to those States having large 
     unobligated balances of funds apportioned under sections 104 
     and 144 of title 23, United States Code.
       [(e) Applicability of Obligation Limitations to 
     Transportation Research Programs.--Obligation limitations 
     imposed by subsection (a) shall apply to transportation 
     research programs carried out under chapter 5 of title 23, 
     United States Code, and under

[[Page 743]]

     title V of this Act; except that obligation authority made 
     available for such programs under such limitations shall 
     remain available for a period of 3 fiscal years and shall be 
     in addition to the amount of any limitation imposed on 
     obligations for Federal-aid highway and highway safety 
     construction programs for future fiscal years.
       [(f) Special Rule.--Obligation authority distributed for a 
     fiscal year under subsection (c)(2) for a section set forth 
     in subsection (c)(2) shall remain available until used for 
     obligation of funds for such section and shall be in addition 
     to the amount of any limitation imposed on obligations for 
     Federal-aid highway and highway safety construction programs 
     for future fiscal years.
       [(g) Adjustment in Obligation Limit.--Limitations on 
     obligations imposed by subsection (a) for a fiscal year shall 
     be adjusted by an amount equal to the amount determined 
     pursuant to section 251(b)(1)(B) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 for such fiscal year, 
     as amended by this Act. Any such adjustment shall be 
     distributed in accordance with this section.
       [(h) Limitations on Obligations for Administrative 
     Expenses.--Notwithstanding any other provision of law, the 
     total amount of all obligations under section 104(a) of title 
     23, United States Code, shall not exceed--
       [(1) $350,000,000 for fiscal year 2004;
       [(2) $380,000,000 for fiscal year 2005;
       [(3) $400,000,000 for fiscal year 2006;
       [(4) $420,000,000 for fiscal year 2007;
       [(5) $440,000,000 for fiscal year 2008; and
       [(6) $460,000,000 for fiscal year 2009.

     [SEC. 1103. APPORTIONMENTS.

       [(a) Administrative Expenses.--Section 104(a) of title 23, 
     United States Code, as amended by this Act, is further 
     amended in paragraph (1) by striking ``1 1/6'' and inserting 
     ``1.4''.
       [(b) Metropolitan Planning.--Section 104(f) of title 23, 
     United States Code, is amended--
       [(1) in paragraph (1), by striking ``not to exceed''; and 
     by striking ``authorized under this title'' and inserting 
     ``identified in such subsection, except for the Federal lands 
     highway program and the Appalachian development highway 
     program'';
       [(2) in paragraph (2), by striking ``per centum'' and 
     inserting ``percent'';
       [(3) in paragraph (3), by striking ``These funds shall be 
     matched in accordance with section 120(b) unless the 
     Secretary determines that the interests of the Federal-aid 
     highway program would be best served without such matching.'' 
     and inserting ``Any funds that are not used to carry out 
     section 134 of this title may be made available by a 
     metropolitan planning organization to the State to fund 
     activities under section 135.''; and
       [(4) by adding the following after paragraph (5):
       [``(6) Federal share.--Funds apportioned to a State under 
     this subsection shall be matched in accordance with section 
     120(b) unless the Secretary determines that the interests of 
     the Federal-aid highway program would be best served without 
     such matching.''.
       [(c) State Defined.--Section 1103(n) of the Transportation 
     Equity Act for the 21st Century (Public Law 105-178) is 
     repealed.
       [(d) Executive Office Complex.--Section 104 of title 23, 
     United States Code, is amended by adding after subsection 
     (q), as added by this Act, the following:
       [``(r) Executive Office Complex.--On October 1 of each 
     fiscal year for fiscal years 2004 through 2009, the 
     Secretary, after making the deductions authorized by 
     subsections (a) and (f), shall set aside $2,000,000 for each 
     of fiscal years 2004 through 2006, $14,000,000 for each of 
     fiscal years 2007 and 2008, and $7,000,000 for fiscal year 
     2009 of the remaining funds authorized to be appropriated 
     under subsection (b)(3) for the preferred option determined 
     by a study for highway access near the Executive Office 
     complex.''.
       [(e) Alaska Highway.--Section 104(b)(1)(A) of title 23, 
     United States Code, is amended by striking ``$18,800,000 for 
     each of fiscal years 1998 through 2002 for the Alaska 
     Highway'' and substituting ``$18,800,000 for each of fiscal 
     years 2004 through 2009 for the Alaska Highway''.

     [SEC. 1104. MINIMUM GUARANTEE.

       [Section 105 of title 23, United States Code, is amended to 
     read as follows:

     [``Sec. 105. Minimum guarantee

       [``(a) General Rule.--For each of fiscal years 2004 through 
     2009, the Secretary shall allocate among the States amounts 
     sufficient to ensure that each State's percentage of the 
     total apportionments for such fiscal year of Interstate 
     maintenance, national highway system, bridge, congestion 
     mitigation and air quality improvement, surface 
     transportation, highway safety improvement, minimum 
     guarantee, Appalachian development highway system, 
     infrastructure performance and maintenance, and recreational 
     trails programs shall equal the percentage listed for each 
     State in subsection (b). The minimum amount allocated to a 
     State listed in subsection (b) under this section for a 
     fiscal year shall be $1,000,000.
       [``(b) State Percentages.--The percentage referred to in 
     subsection (a) for a State shall be determined in accordance 
     with the following table:

[``States:                                                  Percentage:
  [Alabama......................................................2.0269 
  [Alaska.......................................................1.1915 
  [Arizona......................................................1.5581 
  [Arkansas.....................................................1.3214 
  [California...................................................9.1962 
  [Colorado.....................................................1.1673 
  [Connecticut..................................................1.5186 
  [Delaware.....................................................0.4424 
  [District of Columbia.........................................0.3956 
  [Florida......................................................4.6176 
  [Georgia......................................................3.5104 
  [Hawaii.......................................................0.5177 
  [Idaho........................................................0.7718 
  [Illinois.....................................................3.3819 
  [Indiana......................................................2.3588 
  [Iowa.........................................................1.2020 
  [Kansas.......................................................1.1717 
  [Kentucky.....................................................1.7365 
  [Louisiana....................................................1.5900 
  [Maine........................................................0.5263 
  [Maryland.....................................................1.5087 
  [Massachusetts................................................1.8638 
  [Michigan.....................................................3.1535 
  [Minnesota....................................................1.4993 
  [Mississippi..................................................1.2186 
  [Missouri.....................................................2.3615 
  [Montana......................................................0.9929 
  [Nebraska.....................................................0.7768 
  [Nevada.......................................................0.7248 
  [New Hampshire................................................0.5163 
  [New Jersey...................................................2.5816 
  [New Mexico...................................................0.9884 
  [New York.....................................................5.1628 
  [North Carolina...............................................2.8298 
  [North Dakota.................................................0.6553 
  [Ohio.........................................................3.4257 
  [Oklahoma.....................................................1.5419 
  [Oregon.......................................................1.2183 
  [Pennsylvania.................................................4.9887 
  [Rhode Island.................................................0.5958 
  [South Carolina...............................................1.5910 
  [South Dakota.................................................0.7149 
  [Tennessee....................................................2.2646 
  [Texas........................................................7.2131 
  [Utah.........................................................0.7831 
  [Vermont......................................................0.4573 
  [Virginia.....................................................2.5627 
  [Washington...................................................1.7875 
  [West Virginia................................................1.1319 
  [Wisconsin....................................................1.9916 
  [Wyoming......................................................0.6951.
       [``(c) Special Rule.--The Secretary shall allocate to 
     Puerto Rico $1,000,000 for each of fiscal years 2004 through 
     2009. Such amounts shall be subject to the provisions in 
     paragraph (d) of this section.
       [``(d) Treatment of Funds.--
       [``(1) Programmatic distribution.--The Secretary shall 
     apportion 50 percent of the amounts made available under this 
     section so that the amount apportioned to each State under 
     this paragraph for each program referred to in subsection (a) 
     (other than metropolitan planning, minimum guarantee, 
     Appalachian development highway system, infrastructure 
     performance and maintenance, and recreational trails 
     programs) is equal to the amount determined by multiplying 
     the amount to be apportioned under this paragraph by the 
     ratio that--
       [``(A) the amount of funds apportioned to each State for 
     each program referred to in subsection (a) (other than 
     metropolitan planning, minimum guarantee, Appalachian 
     development highway system, infrastructure performance and 
     maintenance, and recreational trails programs) for a fiscal 
     year; bears to
       [``(B) the total amount of funds apportioned to each State 
     for all such programs for such fiscal year.
       [``(2) Remaining distribution.--The Secretary shall 
     allocate the remainder of funds made available under this 
     section to the States for use in accordance with section 133; 
     except that requirements of paragraphs (1) and (2) of section 
     133(d) shall not apply to amounts apportioned pursuant to 
     this paragraph.
       [``(e) Authorization.--There are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) such sums as may be necessary to carry 
     out this section for each of fiscal years 2004 through 2009.
       [``(f) Guarantee of 90.5 Percentage Return.--
       [``(1) In general.--Before making any apportionment under 
     this title for each of fiscal years 2004 through 2009, the 
     Secretary shall adjust the percentages in the table in 
     subsection (b) to reflect the estimated percentage of 
     estimated tax payments attributable to highway users in each 
     State paid into the Highway Trust Fund (other than the Mass 
     Transit Account) in the latest fiscal year for which data is 
     available, to ensure that no State's percentage return from 
     such Trust Fund is less than 90.5 percent of the State's 
     percentage contribution.
       [``(2) Conforming adjustments.--After making any 
     adjustments under paragraph (1) for a fiscal year, the 
     Secretary shall adjust the remaining percentages in the table 
     set forth in subsection (b) to ensure that the total of the 
     percentages in the table, as adjusted, do not exceed 100 
     percent for such fiscal year.
       [``(3) Limitation on adjustments.--After making any 
     adjustments under paragraph (2) for a fiscal year, the 
     Secretary shall determine whether or not any State's 
     percentage return from the Highway Trust Fund (other

[[Page 744]]

     than the Mass Transit Account) is less than 90.5 percent of 
     the State's percentage contribution to the Highway Trust fund 
     as a result of such adjustments and shall adjust the 
     percentages in the table for such fiscal year accordingly. 
     Adjustments of the percentages in the table under this 
     paragraph may not result in the total of such percentages 
     exceeding 100 percent.
       [``(4) Rate of return.--A State's percentage return for 
     such fiscal year shall be in the ratio that--
       [``(A) the quotient obtained by dividing the total amount 
     of funds apportioned to each State, except Puerto Rico, for 
     the current fiscal year for Interstate maintenance, national 
     highway system, bridge, congestion mitigation and air quality 
     improvement, surface transportation, minimum guarantee, 
     highway safety improvement, Appalachian development highway 
     system, infrastructure performance and maintenance, and 
     recreational trails programs by the total amount of funds 
     apportioned for such programs in all States, except Puerto 
     Rico, for the current fiscal year; bears to
       [``(B) the quotient obtained by dividing the estimated tax 
     payments attributable to highway users in each State paid 
     into the Highway Trust Fund (other than the Mass Transit 
     Account) in the latest fiscal year for which data are 
     available by the estimated tax payments attributable to 
     highway users in all States paid into the Highway Trust Fund 
     (other than the Mass Transit Account) for such fiscal 
     year.''.

     [SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY (RABA) -- 
                   AMENDMENTS.

       [Section 110 of title 23, United States Code, is amended--
       [(1) in subsections (a)(1) and (a)(2), by striking ``2000'' 
     and inserting ``2006'';
       [(2) in subsection (a)(2), by striking ``the succeeding'' 
     and inserting ``that'', and by striking ``and the motor 
     carrier safety grant program'';
       [(3) in subsection (b)(1)(A), by striking ``and the motor 
     carrier safety grant program'' and by striking ``, the 
     Transportation Equity Act for the 21st Century, and 
     subchapter I of chapter 311 of title 49'' after ``under this 
     title'' and insert ``and the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003'';
       [(4) in subsection (c), by inserting ``the highway safety 
     improvement program,'' after ``the surface transportation 
     program,''; and
       [(5) by striking subsections (e), (f), and (g).

                       [Subtitle B--New Programs

     [SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE 
                   PROGRAM.

       [(a) Establishment.--The Secretary shall establish and 
     implement an Infrastructure Performance and Maintenance 
     Program in accordance with this section.
       [(b) Eligible Projects.--
       [(1) In general.--A State may obligate funds apportioned to 
     it under this section only for highway projects eligible 
     under the Interstate Maintenance Program, the National 
     Highway System Program, and the Surface Transportation 
     Program that will--
       [(A) cost-effectively preserve, maintain, or otherwise 
     extend the useful life of existing highway infrastructure 
     elements; or
       [(B) provide operational improvements, including traffic 
     management and intelligent transportation system strategies 
     and limited capacity enhancements, at points of recurring 
     highway congestion.
       [(2) Transfer prohibition.--Notwithstanding sections 104 
     and 126 of title 23, United States Code, funds apportioned 
     under this section shall not be transferred to another 
     Federal agency or program.
       [(c) Apportionment of Infrastructure Performance and 
     Maintenance Program Funds.--
       [(1) In general.--On October 1 of each fiscal year the 
     Secretary shall apportion to the States the funds authorized 
     to be appropriated to carry out this section in accordance 
     with the following formula:
       [(A) 25 percent of the apportionments in the ratio that--
       [(i) the total lane miles of Federal-aid highways in each 
     State; bears to
       [(ii) the total lane miles of Federal-aid highways in all 
     States.
       [(B) 40 percent of the apportionments in the ratio that--
       [(i) the total vehicle miles traveled on lanes on Federal-
     aid highways in each State; bears to
       [(ii) the total vehicle miles traveled on lanes on Federal-
     aid highways in all States.
       [(C) 35 percent of the apportionments in the ratio that--
       [(i) the estimated tax payments attributable to highway 
     users in each State paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available; bears to
       [(ii) the estimated tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available.
       [(2) Minimum apportionment.--Notwithstanding paragraph (1), 
     each State shall receive a minimum of \1/2\ of 1 percent of 
     the funds apportioned under this paragraph.
       [(d) Contract Authority.--Funds authorized to be 
     appropriated under section 1101(a)(16) of this Act to carry 
     out this section shall be available for obligation in the 
     same manner as if such funds were apportioned under chapter 1 
     of title 23, United States Code, except that such funds shall 
     remain available for obligation only as provided in 
     subsection (e); shall not be subject to any deduction or set 
     aside requirement; and shall not be transferred to another 
     Federal agency or program in accordance with subsection 
     (b)(2).-
       [(e) Period of Availability.--
       [(1) Obligation within 6 months.--Funds apportioned to a 
     State under this section must be obligated by such State 
     within 6 months of the date of apportionment. Any amounts 
     that remain unobligated at the end of that period shall be 
     reapportioned in accordance with subsection (f).
       [(2) One year.--All funds apportioned or reapportioned 
     under this section shall remain available for obligation 
     until the last day of the fiscal year in which they are 
     apportioned. Any amounts apportioned that remain unobligated 
     at the end of the fiscal year shall lapse.
       [(f) Redistribution of Apportioned Funds and Obligation 
     Authority.--Six months after the date of apportionment or as 
     soon thereafter as feasible in each fiscal year, the 
     Secretary shall withdraw any funds apportioned to a State 
     under this section that remain unobligated, along with an 
     equal amount of obligation authority provided for the use of 
     such funds pursuant to section 1102(c) of this Act, and shall 
     reapportion such funds and redistribute such obligation 
     authority to those States that have fully obligated all 
     amounts apportioned under this section in such fiscal year 
     and that demonstrate they are able to obligate additional 
     amounts for projects eligible under this section before the 
     end of the fiscal year. The calculation and distribution of 
     funds under section 105 of title 23, United States Code, 
     shall not be adjusted as a result of the reapportionment of 
     funds under this subsection.
       [(g) Federal Share Payable.--The Federal share payable for 
     a project funded under this section shall be determined in 
     accordance with the provisions of section 120 of title 23, 
     United States Code.
       [(h) State Defined.--In this section, the term ``State'' 
     has the meaning such term has under section 101(a) of title 
     23, United States Code.

     [SEC. 1202. CLARIFY FEDERAL-AID ELIGIBILITY FOR SECURITY 
                   PROJECTS.

       [Section 101 of title 23, United States Code, is amended--
       [(1) by striking the word ``and'' at the end of paragraph 
     (a)(3)(G);
       [(2) by striking the period at the end of paragraph 
     (a)(3)(H) and inserting ``; and'';
       [(3) by adding the following at the end of paragraph 
     (a)(3)(H):

       [``(I) improvements directly related to homeland security 
     for detection, preparedness, prevention, response, and 
     recovery.''; and

       [(4) by inserting the words ``protection and'' after the 
     words ``means the'' and by inserting ``, secure,'' after the 
     word ``safe'' in section (a)(14).

     [SEC. 1203. FUTURE OF THE INTERSTATE HIGHWAY SYSTEM.

       [(a) Declaration of Policy.--Section 101 of title 23, 
     United States Code, is amended by striking subsection (b) and 
     inserting the following:
       [``(b) It is hereby declared to be in the national interest 
     to accelerate the construction and reconstruction of the 
     Federal-aid highway systems since many of such highways, or 
     portions thereof, are in fact inadequate to meet the needs of 
     local and interstate commerce and national and civil defense.
       [``It is further declared that it is in the national 
     interest to preserve and enhance the Dwight D. Eisenhower 
     National System of Interstate and Defense Highways (hereafter 
     referred to as the ``Interstate System'') to meet the 
     nation's needs for the 21st Century. Urban and long distance 
     personal travel and freight movement demands continue to 
     grow. Travel demand patterns will remain dynamic. Continued 
     planning for and investment in the Interstate System is 
     critical to assure it adequately meets the changing travel 
     demands of the future. The Interstate System must be safe, 
     efficient, and reliable and must ensure national and 
     interregional personal mobility, the flow of interstate 
     commerce, and travel movements essential for national 
     security. To the maximum extent possible, actions under this 
     title should address congestion and freight transportation to 
     provide for a strong and vigorous national economy. Special 
     emphasis should be devoted to providing safe and efficient 
     access for the type and size of commercial and military 
     vehicles that access designated National Highway System 
     intermodal freight terminals.
       [``The Interstate System is further declared to be the 
     nation's premiere highway system, essential for the nation's 
     economic vitality, national security, and general welfare. 
     The Secretary is directed to take appropriate actions to 
     preserve and enhance the Interstate System to meet the needs 
     of the 21st Century.''.

     [SEC. 1204. MILITARY VEHICLE ACCESS (OVERSIZE AND OVERWEIGHT 
                   VEHICLES; RELIEF FROM TOLLS).

       [(a) Procedures on Military Vehicle Access.--The Secretary 
     of Transportation is

[[Page 745]]

     authorized to issue, in consultation with the Secretary of 
     Defense and the Secretary of Homeland Security, procedures 
     and orders that will expedite the highway movement of all 
     marked military vehicles and convoys. The procedures shall 
     specifically address the expedited movement of marked 
     military vehicles, including the establishment of temporary 
     vehicle size and weight limits in excess of Federal and local 
     maximum limits, expedited oversize/overweight permits, and 
     exemptions from payment of local tolls and expedited movement 
     through toll facilities.
       [(b) Preemption.--A law, regulation, order, ruling, 
     provision, or other requirement of a State, territory, Indian 
     tribe, or political subdivision thereof, which covers the 
     vehicles and movements described in paragraph (a) and which 
     is not consistent with the procedures or related limitations 
     established by the Secretary under that paragraph, is 
     preempted. The Secretaries of Transportation, Homeland 
     Security, and Defense, may request the Attorney General to 
     bring a civil action seeking appropriate relief respecting 
     the effect of such laws, regulations, orders, rulings, 
     provisions or other requirements in any court of competent 
     jurisdiction. Nothing in this section shall be construed as 
     limiting claims or remedies otherwise available under law or 
     equity.
       [(c) Exemption From Administrative Procedure Act.--A 
     procedure established by the Secretary under paragraph (a) 
     shall be exempt from the provisions of 5 U.S.C. 553.

     [SEC. 1205. FREIGHT TRANSPORTATION GATEWAYS; FREIGHT 
                   INTERMODAL CONNECTIONS.

       [(a) Freight Transportation Gateways.--Chapter 3 of title 
     23, United States Code, is amended by adding after section 
     324 the following new section:

     [``Sec. 325. Freight transportation gateways

       [``(a) In General.--
       [``(1) Establishment.--The Secretary shall establish a 
     freight transportation gateways program to improve 
     productivity, security, and safety of freight transportation 
     gateways, while mitigating congestion and community impacts 
     in the area of such gateways.
       [``(2) Purposes.--The purposes of the freight 
     transportation gateways program shall be--
       [``(A) to facilitate and support multimodal freight 
     transportation initiatives at the State and local levels in 
     order to improve freight transportation gateways and mitigate 
     the impact of congestion on the environment in the area of 
     such gateways;
       [``(B) to provide capital funding to address infrastructure 
     and freight operational needs at freight transportation 
     gateways;
       [``(C) to encourage adoption of new financing strategies to 
     leverage State, local, and private investment in freight 
     transportation gateways; and
       [``(D) to support military mobilization and readiness.
       [``(b) State Responsibilities.--
       [``(1) Project development process.--Each State shall 
     ensure that intermodal freight transportation, trade 
     facilitation, and economic development needs are adequately 
     addressed and fully integrated into the project development 
     process, including transportation planning, through final 
     design and construction of freight related transportation 
     projects.
       [``(2) Freight transportation coordinator position.--Each 
     State shall designate a freight transportation coordinator. 
     The coordinator shall be responsible for fostering public and 
     private sector collaboration needed to implement complex 
     solutions to freight transportation and freight 
     transportation gateway problems, including coordination of 
     metropolitan and statewide transportation activities with 
     trade and economic interests and coordination with other 
     States, local Department of Defense officials, local 
     Department of Homeland Security officials, agencies, and 
     organizations to find regional solutions to freight 
     transportation problems. The coordinator shall also be 
     responsible for advancing freight professional capacity 
     building programs for the State.
       [``(c) Innovative Finance.--States and localities are 
     encouraged to adopt innovative financing strategies for 
     freight transportation gateway improvements, including new 
     user fees; modifications to existing user fees, including 
     trade facilitation charges; revenue options that incorporate 
     private sector investment; and a blending of Federal-aid and 
     innovative finance programs. The Secretary shall provide 
     technical assistance to States and localities with respect to 
     such strategies.
       [``(d) Intermodal Freight Transportation Projects.--
       [``(1) Use of surface transportation program funds.--A 
     State may obligate funds apportioned to it under section 
     104(b)(3) of this title for publicly owned intermodal freight 
     transportation projects that provide community and highway 
     benefits by addressing economic, congestion, security, 
     safety, and environmental issues associated with freight 
     transportation gateways.
       [``(2) Eligible projects.--Projects eligible for funding 
     under this section--
       [``(A) may include publicly-owned intermodal freight 
     transfer facilities, access to such facilities, and 
     operational improvements for such facilities (including 
     capital investment for Intelligent Transportation Systems), 
     except that projects located within the boundaries of port 
     terminals shall only include the transportation 
     infrastructure modifications necessary to facilitate direct 
     intermodal access into and out of such port; and
       [``(B) may involve the combining of private and public 
     sector funds.''.-
       [(b) Eligibility for Surface Transportation Program 
     Funds.--Section 133(b) of title 23, United States Code, is 
     amended by adding at the end the following new paragraph:
       [``(15) Intermodal freight transportation projects in 
     accordance with section 325(d)(2) of this title.''.
       [(c) Freight Intermodal Connections to NHS.--Section 103(b) 
     of such title, is amended by adding at the end the following 
     new paragraph:
       [``(7) Freight intermodal connections to the nhs--
       [``(A) Funding set-aside.--Of the funds apportioned to a 
     State in each fiscal year under section 104(b)(1) of this 
     title, an amount determined in accordance with subparagraph 
     (B) of this paragraph shall only be available to such State 
     to be obligated for projects on--
       [``(i) National Highway System routes connecting to 
     intermodal freight terminals identified according to criteria 
     set forth in the report to Congress entitled ``Pulling 
     Together: The National Highway System and its Connections to 
     Major Intermodal Terminals'' dated May 24, 1996, referenced 
     in paragraph (1) of this subsection, and any modifications to 
     these connections consistent with paragraph (4) of this 
     subsection, and
       [``(ii) Strategic Highway Network (STRAHNET) connectors to 
     strategic military deployment ports.
       [``(B) Determination of amount.--The amount of funds for 
     each State in a fiscal year that shall be set aside pursuant 
     to subparagraph (A) of this paragraph shall be--
       [``(i) equal to the total amount of funds apportioned to 
     such State under section 104(b)(1) of this title multiplied 
     by the percentage of miles that routes set forth in 
     subparagraph (A) of this paragraph constitute of the total 
     miles on the National Highway System in such State, or
       [``(ii) two percent of the annual apportionment to the 
     State of funds under 104(b)(1), whichever is greater.
       [``(C) Exemption from set-aside.--In any fiscal year, a 
     State may obligate the funds otherwise set aside by this 
     paragraph on any project which is both eligible under 
     paragraph (6) of this subsection and located in such State on 
     a segment of the National Highway System set forth in 
     paragraph (2) of this subsection if such State certifies and 
     the Secretary concurs that--
       [``(i) the routes described in subparagraph (A) of this 
     paragraph are in good condition and provide an adequate level 
     of service for military vehicle and civilian commercial 
     vehicle use, and
       [``(ii) significant needs on such routes are being met or 
     do not exist.''.
       [(d) Definitions and Declaration of Policy.--Section 101(a) 
     of such title is amended by redesignating paragraphs (11) 
     through (37) as paragraphs (12) through (38), respectively, 
     and inserting new paragraph (11) as follows:
       [``(11) Freight transportation gateway.--The term `freight 
     transportation gateway' means a nationally or regionally 
     significant transportation port of entry or hub for domestic 
     and global trade, military mobilization, and includes freight 
     intermodal and Strategic Highway Network connections that 
     provide access to and from these gateways.''.
       [(e) Federal Share Payable.--Section 120 of such title is 
     amended by adding at the end the following new subsection:
       [``(m) Increased Federal Share for Connectors.--On National 
     Highway System intermodal freight connections and Strategic 
     Highway Network connectors to strategic military deployment 
     ports described in section 103(b)(7), the Federal share may 
     be up to 90 percent of the total cost of the project.''.
       [(f) Length Limitations.--Section 31111(e) of title 49, 
     United States Code, is amended by adding at the end ``In the 
     interests of economic competitiveness, security, and 
     intermodal connectivity, States shall update these qualifying 
     highways within three years of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 to include Strategic Highway Network connectors 
     to strategic military deployment ports and National Highway 
     System intermodal freight connections serving military and 
     commercial truck traffic going to major intermodal terminals 
     as described in section 103(b)(7).''.
       [(g) Conforming Amendment.--The analysis of chapter 3 of 
     title 23 is amended by adding at the end the following:

[``325. Freight transportation gateways.''.

     [SEC. 1206. AUTHORITY FOR ALTERNATIVE TIME-SAVING PROCEDURES 
                   FOR CRITICAL TRANSPORTATION SECURITY PROJECTS.

       [(a) Critical, time sensitive highway and public 
     transportation security projects are projects that are 
     necessary to address an imminent threat to the security of a 
     transportation facility or to repair damage to a 
     transportation facility caused by a terrorist

[[Page 746]]

     attack against the United States. Such projects shall be 
     identified by the Secretary in consultation with the owner-
     operator of the facility and with the Secretary of Homeland 
     Security.
       [(b) The Secretary of Transportation shall develop and 
     implement expedited procedures for critical, time-sensitive 
     highway and public transportation security projects. These 
     procedures shall address planning, environmental review, 
     public involvement, acquisition of rights-of-way, and 
     contracting, and they shall be developed with the concurrence 
     of other affected Federal agencies whose authorities will be 
     affected by the procedures and in consultation with any other 
     Federal agencies that the Secretary determines have an 
     interest in the procedures. For the limited purpose of 
     expediting interim measures needed to address an imminent 
     threat to the security of a transportation facility, the 
     Secretary may provide that these procedures are exclusive of 
     any other statute relating to planning, environmental 
     reviews, public involvement, acquisition of right-of-way, and 
     contracting, so long as the Secretary determines that such 
     measures are necessary for the protection of the public and 
     receives the concurrence of any other Federal agency 
     responsible for administering such statutes. The Secretary 
     shall issue rules establishing these procedures within one 
     year of the enactment of this law.

                          [Subtitle C--Finance

     [SEC. 1301. FEDERAL SHARE.

       [Section 120 of title 23, United States Code, is amended--
       [(1) in subsection (a), by striking ``shall be 90 percent'' 
     and all that follows through the end of the subsection and 
     inserting ``shall not exceed 90 percent of the total cost of 
     the project.'';
       [(2) in subsection (b), by striking ``shall be'' and all 
     that follows through the end of the subsection and inserting 
     ``shall not exceed 80 percent of the total cost of the 
     project.''; and
       [(3) by striking subsection (d) and inserting the 
     following:
       [``(d) Increased Federal Share.--The Federal share payable 
     under (a) and (b) may be increased in the case of any State 
     containing nontaxable Indian lands, public lands (both 
     reserved and unreserved), national forests, and national 
     parks and monuments. The Federal share for any project 
     subject to this section shall be increased by a percentage of 
     the remaining cost equal to the percentage that the area of 
     all such lands in a State is of its total area not to exceed 
     95 percent of the total cost of the project. These rates 
     shall be revised as needed based on data provided by the 
     Federal agencies responsible for maintaining the data.''.

     [SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

       [Section 104(m) of title 23, as redesignated by this Act, 
     is amended to read as follows:
       [``(m) Transfer of Highway and Transit Funds.--
       [``(1) Transfer of highway funds for transit projects.--
     Funds made available for transit projects or transportation 
     planning under this title may be transferred to and 
     administered by the Secretary in accordance with chapter 53 
     of title 49, except that the provisions of this title 
     relating to the non-Federal share shall apply to the 
     transferred funds.
       [``(2) Transfer of transit funds for highway projects.--
     Funds made available for highway projects or transportation 
     planning under chapter 53 of title 49 may be transferred to 
     and administered by the Secretary in accordance with this 
     title, except that the provisions of such chapter relating to 
     the non-Federal share shall apply to the transferred funds.
       [``(3) Transfer of highway funds to other federal 
     agencies.--Except as provided in paragraphs (1) and (2), when 
     an expenditure is specifically authorized in Federal-aid 
     highway legislation, as a line item in an appropriation act, 
     or when a State transportation department consents to a 
     transfer of funds under this title that are derived from the 
     Highway Trust Fund (other than the Mass Transit account), 
     such funds may be transferred to another Federal agency 
     subject to subparagraphs (A), (B), (C), and (D) of this 
     paragraph--
       [``(A) if the Secretary determines, after consultation with 
     the State transportation department as appropriate, that 
     another Federal agency should carry out a project with funds 
     made available under this title or any other act that are 
     derived from Highway Trust Fund (other than the Mass Transit 
     account);
       [``(B) the project will be administered by the Federal 
     agency under its procedures, and such funds shall not be 
     deemed to be an augmentation of that agency's appropriations;
       [``(C) such other Federal agency agrees to accept the 
     transfer of funds and to administer those funds; and
       [``(D) the provisions of this title or the acts referred to 
     above relating to the non-Federal share shall apply to the 
     transferred funds, except where the Secretary determines that 
     it is in the best interest of the United States that such 
     share be waived.
       [``(4) Transfer of funds among states or to the federal 
     highway administration.--The Secretary may, at the request of 
     a State, transfer funds apportioned or allocated to such 
     State to another State or to the Federal Highway 
     Administration for the purpose of funding a specific project 
     or projects. The funds transferred shall be used for the same 
     purpose and in the same manner for which they were 
     authorized. Such transfer shall have no effect on any 
     apportionment formula used to distribute funds to the States 
     under sections 104, 105, or 144. Funds that are apportioned 
     or allocated to a State under section 104(b)(3) and 
     attributed to urbanized areas of a State with a population of 
     over 200,000 individuals under section 133(d)(2) may be 
     transferred under this subsection only if the metropolitan 
     planning organization designated for the area concurs, in 
     writing, with the transfer request.
       [``(5) Transfer of obligation authority.--Obligation 
     authority shall be transferred in the same manner and amount 
     as the funds for the projects are transferred under this 
     section.''.

     [SEC. 1303. STATE INFRASTRUCTURE BANK PILOT PROGRAM.

       [(a) Definitions.--In this section, the following 
     definitions apply:
       [(1) Capital project.--The term ``capital project'' has the 
     meaning such term has under section 5302 of title 49, United 
     States Code.
       [(2) Other assistance.--The term ``other assistance'' 
     includes any use of funds in an infrastructure bank--
       [(A) to provide credit enhancements;
       [(B) to serve as a capital reserve for bond or debt 
     instrument financing;
       [(C) to subsidize interest rates;
       [(D) to ensure the issuance of letters of credit and credit 
     instruments;
       [(E) to finance purchase and lease agreements with respect 
     to transit projects;
       [(F) to provide bond or debt financing instrument security; 
     and
       [(G) to provide other forms of debt financing and methods 
     of leveraging funds that are approved by the Secretary and 
     that relate to the project with respect to which such 
     assistance is being provided.
       [(3) State.--The term ``State'' has the meaning such term 
     has under section 101 of title 23, United States Code.
       [(4) Capitalization.--The term ``capitalization'' means the 
     process used for depositing funds as initial capital into a 
     State Infrastructure Bank to establish the infrastructure 
     bank.
       [(5) Cooperative agreement.--The term ``cooperative 
     agreement'' means the written consent between a State and the 
     Secretary which sets forth the manner in which the State 
     Infrastructure Bank will be administered.
       [(6) Loan.--The term ``loan'' means any form of direct 
     financial assistance from the State Infrastructure Bank, 
     required to be repaid over a period of time, which is 
     provided to a project sponsor for all or part of project 
     costs.
       [(7) Guarantee.--The term ``guarantee'' means a contract or 
     contracts entered into by the State Infrastructure Bank in 
     which the State Infrastructure Bank agrees to take 
     responsibility for all or a portion of a project sponsor's 
     financial obligations for a project under specified 
     conditions.
       [(8) Initial assistance.--The term ``initial assistance'' 
     means the first round of State Infrastructure Bank funds that 
     must be loaned or used for credit enhancement for purposes 
     limited to highway construction under title 23 or transit 
     capital projects under title 49.
       [(9) Leverage.--The term ``leverage'' means a financial 
     structure used to increase State Infrastructure Bank funds 
     through debt issuance. A State Infrastructure Bank is 
     considered leveraged if its total potential liabilities 
     exceed its equity.
       [(b) Pilot Program.--
       [(1) Cooperative agreements.--Subject to the provisions of 
     this section, the Secretary may enter into cooperative 
     agreements with up to five States, including States that 
     entered into cooperative agreements under section 1511 of the 
     Transportation Equity Act for the 21st Century, as amended, 
     for the establishment of State infrastructure banks for 
     making loans and providing other forms of credit assistance 
     to public and private entities carrying out or proposing to 
     carry out projects eligible for assistance under this 
     section.
       [(2) Application.--To participate in the pilot program, a 
     State shall submit an application to the Secretary.
       [(3) Selection criteria.--In evaluating applications for 
     participation in the pilot program, the Secretary shall 
     establish selection criteria that shall include--
       [(A) the State's ability to provide non-Federal funds to 
     capitalize the bank;
       [(B) the existence of State enabling legislation that 
     clearly allows for full State Infrastructure Bank 
     participation;
       [(C) the State's strategy for encouraging non-Federal 
     repayment sources from project sponsors;
       [(D) the amount of Federal funds the State will commit to 
     the State Infrastructure Bank as a percentage of its Federal-
     aid apportionments;
       [(E) the State's eligibility under section 1511 of the 
     Transportation Equity Act for the 21st Century, as amended; 
     and
       [(F) the State's past experience with a State 
     Infrastructure Bank, including the program established under 
     section 1511 of the

[[Page 747]]

     Transportation Equity Act for the 21st Century, as amended, 
     or comparable financing mechanisms.
       [(4) Termination of cooperative agreement.--If a State that 
     has been selected for this pilot program does not fund its 
     State Infrastructure Bank within 90 days after execution of 
     the cooperative agreement, the Secretary may terminate the 
     cooperative agreement and may select another State to 
     participate in the pilot program in accordance with this 
     subsection.
       [(c) Interstate Compacts.--Congress grants consent to 2 or 
     more of the States, entering into a cooperative agreement 
     under subsection (b)(1) with the Secretary for the 
     establishment of a multi-state infrastructure bank, to enter 
     into an interstate compact establishing such bank in 
     accordance with this section.
       [(d) Funding.--
       [(1) Highway account.--Subject to subsection (i), the 
     Secretary may permit a State entering into a cooperative 
     agreement under this section to contribute not to exceed--
       [(A) 10 percent of the funds apportioned to the State for 
     each of fiscal years 2004 through 2009 under each of sections 
     104(b)(1), 104(b)(3), 104(b)(4), and 144, of title 23, United 
     States Code, and
       [(B) 10 percent of the funds allocated to the State for 
     each of such fiscal years under section 105 of such title 
     into the highway account of the infrastructure bank 
     established by the State. Federal funds contributed to such 
     account under this paragraph shall constitute for purposes of 
     this section a capitalization grant for the highway account 
     of the infrastructure bank.
       [(2) Transit account.--Subject to subsection (i), the 
     Secretary may permit a State entering into a cooperative 
     agreement under this section, and any other Federal transit 
     grant recipient, to contribute not to exceed 10 percent of 
     the funds made available to the State or other Federal 
     transit grant recipient in each of fiscal years 2004 through 
     2009 for capital projects under sections 5307, 5309, and 5311 
     of title 49, United States Code, into the transit account of 
     the infrastructure bank established by the State. Federal 
     funds contributed to such account under this paragraph shall 
     constitute for purposes of this section a capitalization 
     grant for the transit account of the infrastructure bank.
       [(3) Special rule for urbanized areas of over 200,000.--
     Funds that are attributed to urbanized areas of States with 
     urbanized populations of over 200,000 under section 133(d)(2) 
     of title 23, as amended by this Act, may be used to provide 
     assistance with respect to a project only if the metropolitan 
     planning organization designated for such area concurs, in 
     writing, with the provision of such assistance.
       [(4) Discontinuance of funding.--If the Secretary 
     determines that a State is not implementing the State 
     Infrastructure Bank in accordance with the cooperative 
     agreement, the Secretary may prohibit a State from 
     contributing additional Federal funds to its State 
     Infrastructure Bank.
       [(e) Forms of Assistance From Infrastructure Banks.--An 
     infrastructure bank established under this section may make 
     loans or provide other credit assistance to a public or 
     private entity in an amount equal to all or part of the cost 
     of carrying out a project eligible for assistance under this 
     section. The amount of any loan or other credit assistance 
     provided for such project may be subordinated to any other 
     debt financing for the project. Initial assistance provided 
     with respect to a project from Federal funds contributed to 
     an infrastructure bank under this section may not be made in 
     the form of a grant
       [(f) Qualifying Projects.--Subject to paragraph (e), funds 
     in an infrastructure bank established under this section may 
     be used only to provide assistance with respect to projects 
     eligible for assistance under title 23, United States Code, 
     for capital projects (as defined in section 5302 of title 49, 
     United States Code), or for any other project related to 
     surface transportation that the Secretary determines to be 
     appropriate.
       [(g) Infrastructure Bank Requirements.--In order to 
     establish an infrastructure bank under this section, each 
     State establishing the bank shall--
       [(1) contribute, at a minimum, into each account of the 
     bank from non-Federal sources an amount equal to 25 percent 
     of the amount of each capitalization grant made to the State 
     and contributed to the bank, except that if the contribution 
     is into the highway account of the bank and the State has a 
     lower non-Federal share under section 120(d) of title 23, as 
     amended by this Act, such percentage shall be adjusted by the 
     Secretary to correspond with such lower non-Federal share. 
     The non-Federal share must be in the form of cash;
       [(2) ensure that the bank maintains on a continuing basis 
     an investment grade rating on its debt or has a sufficient 
     level of bond or debt financing instrument insurance to 
     maintain the viability of the bank;
       [(3) ensure that investment income generated by funds 
     contributed to an account of the bank will be--
       [(A) credited to the account;
       [(B) available for use in providing loans and other 
     assistance to projects eligible for assistance from the 
     account; and
       [(C) invested in United States Treasury securities, bank 
     deposits, or such other financing instruments as the 
     Secretary may approve to earn interest to enhance the 
     leveraging of projects assisted by the bank;
       [(4) ensure that any loan from the bank will bear interest 
     at or below market interest rates, as determined by the 
     State, to make feasible the project that is the subject of 
     the loan;
       [(5) ensure that repayment of any loan from the bank will 
     commence not later than 5 years after the project has been 
     completed or, in the case of a highway project, the facility 
     has opened to traffic, whichever is later;
       [(6) ensure that the term for repaying any loan will not 
     exceed 30 years after the date of the first payment on the 
     loan under paragraph (5); and
       [(7) require the bank to make an annual report to the 
     Secretary on its status, and to make such other reports as 
     the Secretary may require by guidelines.
       [(h) Secretarial Requirements.--In administering this 
     section,the Secretary shall--
       [(1) issue guidelines to ensure that all requirements of 
     title 23, United States Code, or title 49, United States 
     Code, that would otherwise apply to funds made available 
     under such title and projects assisted with such funds apply 
     to--
       [(A) funds made available under such title and contributed 
     to an infrastructure bank established under this section; and
       [(B) projects assisted by the bank through the use of such 
     funds; except to the extent that the Secretary determines 
     that any requirement of such title (other than sections 113 
     and 114 of title 23 and section 5333 of title 49), is not 
     consistent with the objectives of this section; and
       [(2) specify procedures and guidelines for establishing, 
     operating, and providing assistance from the bank.
       [(i) Applicability of Federal Law to Repayments.--The 
     requirements of title 23 and title 49, United States Code, 
     shall apply to projects financed from repayments to an 
     infrastructure bank from projects assisted by the bank. Such 
     repayments shall be considered to be Federal funds for the 
     purpose of this subsection.
       [(j) United States Not Obligated.--The contribution of 
     Federal funds into an infrastructure bank established under 
     this section shall not be construed as a commitment, 
     guarantee, or obligation on the part of the United States to 
     any third party, nor shall any third party have any right 
     against the United States for payment solely by virtue of the 
     contribution. Any security or debt-financing instrument 
     issued by the infrastructure bank shall expressly state that 
     the security or instrument does not constitute a commitment, 
     guarantee, or obligation of the United States.
       [(k) Management of Federal Funds.--Sections 3335 and 6503 
     of title 31, United States Code, shall not apply to funds 
     contributed under this section.
       [(l) Program Administration.--For each of fiscal years 2004 
     through 2009, a State may expend not to exceed 2 percent of 
     the Federal funds contributed to an infrastructure bank 
     established by the State under this section to pay the 
     reasonable costs of administering the bank. This limitation 
     shall not apply to non-Federal funds.

     [SEC. 1304. TRANSPORTATION INFRASTRUCTURE FINANCE AND 
                   INNOVATION ACT (TIFIA) AMENDMENTS.

       [(a) Definitions.--Section 181 of title 23, United States 
     Code is amended--
       [(1) in paragraph (3), by striking ``category'' and 
     ``offered into the capital markets'';
       [(2) by striking paragraph (7) and redesignating paragraphs 
     (8) through (15) as paragraphs (7) through (14) respectively;
       [(3) by amending paragraph (8)(D), as redesignated, to read 
     as follows--
       [``(D) a public or private freight rail facility; an 
     intermodal freight transfer facility; access to such 
     facilities; and service improvements for such facilities 
     including capital investment for Intelligent Transportation 
     Systems; or a group of such projects with the common 
     objective of improving the flow of goods, except that 
     projects located within the boundaries of port terminals 
     shall only include the transportation infrastructure 
     modifications necessary to facilitate direct intermodal 
     access into and out of such port. Such a project may involve 
     the combining of private and public sector funds, including 
     investment of public funds in private sector facility 
     improvements.''; and
       [(4) in paragraph (10), as redesignated, by striking 
     ``bond'' and inserting ``credit''.
       [(b) Determination of Eligibility and Project Selection.--
     Section 182 of such title is amended--
       [(1) in subsection (a)--
       [(A) by striking paragraphs (1) and (2) and inserting the 
     following:
       [``(1) Inclusion in transportation plans and programs.--The 
     project shall satisfy the applicable planning and programming 
     requirements of sections 134 and 135 at such time as an 
     agreement to make available a Federal credit instrument is 
     entered into under this subchapter.
       [``(2) Application.--A State, a local government, public 
     authority, public-private partnership, or any other legal 
     entity undertaking the project and authorized by the

[[Page 748]]

     Secretary, shall submit a project application to the 
     Secretary.'';
       [(B) in paragraph (3)(A)(i), by striking ``$100,000,000'' 
     and inserting ``$50,000,000''; and
       [(C) in paragraph (4), by striking ``Project financing'' 
     and inserting ``The Federal credit instrument'' and by adding 
     at the end of the sentence ``that also secure the project 
     obligations''; and
       [(2) in subsection (b)(1), by striking ``criteria'' after 
     ``eligibility'' and inserting ``requirements'' and in 
     subsection (b)(2)(B) by inserting ``, which may be the 
     Federal credit instrument,'' after ``obligations''.
       [(c) Secured Loans.--Section 183 of such title is amended--
       [(1) in subsection (a)--
       [(A) by striking ``of any project selected under section 
     182.'' at the end of paragraph (1);
       [(B) by inserting ``of any project selected under section 
     182'' after ``costs'' in paragraphs (1)(A) and (1)(B); and
       [(C) in paragraph (4), by striking ``funding'' and 
     inserting ``execution'' and by inserting a period in place of 
     the comma after ``receiving an investment grade rating'' and 
     striking all that follows to the end of the paragraph;
       [(2) in subsection (b)--
       [(A) by inserting ``the lesser of'' after ``exceed'' and 
     ``or the amount of the senior project obligations'' after 
     ``costs'';
       [(B) by inserting ``that also secure the senior project 
     obligations'' in paragraph (3)(A)(i) after ``sources''; and
       [(C) by striking ``marketable'' in paragraph (4); and
       [(3) in subsection (c), by striking paragraph (3) and 
     redesignating paragraphs (4) and (5) as paragraphs (3) and 
     (4) respectively;
       [(d) Lines of Credit.--Section 184 of such title is 
     amended--
       [(1) in subsection (b)--
       [(A) in paragraph (3), by striking the comma after 
     ``interest'' and by striking ``any debt service reserve fund, 
     and any other available reserve'', and by inserting ``but not 
     including reasonably required financing reserves'';
       [(B) in paragraph (4), by striking ``marketable''; by 
     striking ``on which'' after ``date'' and inserting ``of 
     execution of''; and by striking ``is obligated'' after 
     ``credit'' and inserting ``agreement''; and
       [(C) in paragraph (5)(A)(i), by inserting ``that also 
     secure the senior project obligations'' after ``sources''; 
     and
       [(2) in subsection (c)--
       [(A) in paragraph (2) by striking ``scheduled'', by 
     inserting ``be scheduled to'' after ``shall'', and by 
     striking ``be fully repaid, with interest,'' and inserting 
     ``to conclude, with full repayment of principle and 
     interest,''; and
       [(B) by striking paragraph (3).
       [(e) Program Administration.--Section 185 of such title is 
     amended to read as follows:

     [``Sec. 185. Program administration

       [``(a) Requirement.--The Secretary shall establish a 
     uniform system to service the Federal credit instruments made 
     available under this subchapter.
       [``(b) Fees.--The Secretary may establish fees at a level 
     to cover all or a portion of the costs to the Federal 
     government of servicing the Federal credit instruments.
       [``(c) Servicer.--The Secretary may identify a financial 
     entity to assist the Secretary in servicing the Federal 
     credit instruments. The servicer--
       [``(1) shall act as the agent for the Secretary; and
       [``(2) shall receive a servicing fee, subject to approval 
     by the Secretary.
       [``(d) Assistance From Expert Firms.--The Secretary may 
     retain the services of expert firms, including counsel, in 
     the field of municipal and project finance to assist in the 
     underwriting and servicing of Federal credit instruments.''.
       [(f) Funding.--Section 188 of such title is amended to read 
     as follows:

     [``Sec. 188. Funding

       [``(a) Funding.--
       [``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) $130,000,000 for each of fiscal years 2004 through 
     2009 to carry out this subchapter.
       [``(2) Administrative costs.--From funds made available 
     under paragraph (1), the Secretary may use, for the 
     administration of this subchapter, not more than $3,000,000 
     for each of fiscal years 2004 through 2009.
       [``(3) Availability.--Amounts made available under 
     paragraph (1) shall remain available until expended.
       [``(b) Contract Authority.--
       [``(1) In general.--Notwithstanding any other provision of 
     law, approval by the Secretary of a Federal credit instrument 
     that uses funds made available under this subchapter shall be 
     deemed to be acceptance by the United States of a contractual 
     obligation to fund the Federal credit investment.
       [``(2) Availability.--Amounts authorized under this section 
     for a fiscal year shall be available for obligation on 
     October 1 of the fiscal year.
       [``(c) Limitations on Credit Amounts.--For each of fiscal 
     years 2004 through 2009, principal amounts of Federal credit 
     instruments made available shall be limited to 
     $2,600,000,000.''.
       [(g) Section 189 of such title is repealed.
       [(h) Conforming Amendments.--The analysis of chapter 1 of 
     title 23 is amended by--
       [(1) revising the item relating to section 185 to read as 
     follows:

[``185.  Program administration.'';

     and

       [(2) striking the item relating to section 189.

     [SEC. 1305. INTERNATIONAL REGISTRATION PLAN AND INTERNATIONAL 
                   FUEL TAX AGREEMENT FACILITATION.

       [The Secretary may provide assistance to any State that is 
     participating in the International Registration Plan and 
     International Fuel Tax Agreement, as provided in sections 
     31704 and 31705 of title 49, United States Code, and that 
     serves as a base jurisdiction for motor carriers that are 
     domiciled in Mexico, to help the State with administration 
     needs resulting from serving as a base jurisdiction for motor 
     carriers from Mexico.

     [SEC. 1306. COMMERCIALIZED REST AREA PILOT PROJECTS.

       [(a) In General.--The Secretary shall permit the States to 
     conduct pilot projects to acquire, construct, operate, 
     convert, and maintain rest areas along Interstate highways in 
     their States in accordance with subsection (b).
       [(b) Commercial Operations.--
       [(1) Eligibility.--Notwithstanding section 111 of title 23 
     United States Code, and the project agreements required by 
     section 111(a) and executed between the States and the 
     Federal Highway Administration, the Secretary shall permit 
     the rest areas in the pilot projects to include commercial 
     operations that provide goods, services, and information that 
     benefit the traveling public and the commercial motor carrier 
     industry, and as deemed appropriate by the States, 
     including--
       [(A) commercial advertising and displays if such 
     advertising and media displays are--
       [(i) exhibited solely within any facility constructed in 
     the rest area; and
       [(ii) not legible from the main traveled way;
       [(B) programs to provide commercial vehicle operators with 
     special services designed to enhance motor carrier and 
     highway safety; and
       [(C) State promotional or tourism-oriented items.
       [(2) Private operators.--The States may permit such 
     commercial operations to be run by a private operator.
       [(c) Participation.--Participation in this pilot project is 
     limited to those proposals submitted to the Secretary for 
     approval during the one year period after the date of 
     enactment of this Act.
       [(d) Proposals.--
       [(1) The State proposals shall at a minimum--
       [(A) describe the types of goods, services and information 
     to be provided;
       [(B) demonstrate that the proposed project(s) helps 
     implement the strategies developed in the ``Study of Adequacy 
     of Parking Facilities'' prepared pursuant to section 4027 of 
     the Transportation Equity Act for the 21st Century;
       [(C) contain a review and update of the individual State 
     action plans for addressing commercial truck parking 
     shortages; and
       [(D) prepare a plan for evaluating the results of the pilot 
     project(s) in that State.
       [(2) The Secretary must determine that commercial rest area 
     projects being advanced under this pilot program will meet 
     all of the design standards applicable to rest areas on the 
     Interstate system.
       [(e) Limitation on Use of Revenues.--Any revenues received 
     by a State from the commercial operations in a rest area 
     under this section that are in excess of amounts required for 
     the proper operation and maintenance of the rest area shall 
     be used by the State for projects eligible under title 23, 
     United States Code.
       [(f) Considerations.--The Secretary shall consider the 
     benefit to the traveling public and the impact on local 
     businesses in carrying out this section.
       [(g) Vending Machines.--If vending machines are placed in a 
     pilot project, the State shall give priority to vending 
     machines operated through the State licensing agency 
     designated under the Randolph-Sheppard Act.

     [SEC. 1307. HIGHWAY USE TAX EVASION PROJECTS.

       [(a) Eligible Activities.--Section 143(b) of title 23, 
     United States Code, is amended as follows:
       [(1) Intergovernmental enforcement efforts.--Paragraph (2) 
     is amended by inserting a comma after ``Secretary'' and 
     adding ``except that for each of fiscal years 2004 through 
     2009, $2,000,000 shall be available only to carry out 
     intergovernmental enforcement efforts, including research and 
     training''.
       [(2) Conditions on funds allocated to internal revenue 
     service.--Paragraph (3) is amended by inserting a comma after 
     ``subsection'' and adding ``except as otherwise provided in 
     this section''.
       [(3) Limitation on use of funds.--Paragraph (4) is 
     amended--
       [(A) by striking ``and'' at the end of subparagraph (F);
       [(B) by striking the period at the end of subparagraph (G) 
     and inserting a semicolon; and

[[Page 749]]

       [(C) by adding at the end the following:
       [``(H) to support efforts between States and tribes to 
     address issues related to state motor fuel taxes; and-
       [``(I) to analyze and implement programs to reduce tax 
     evasion associated with foreign imported fuel.''.
       [(4) Reports.--The following new paragraph is added at the 
     end:
       [``(9) Reports.--The Internal Revenue Service and States 
     shall submit to the Secretary annual reports that describe 
     the projects, examinations, and criminal investigations 
     funded by and carried out under this section. The reports 
     must specify the annual yield estimated for each project 
     funded under this section.''.
       [(b) Excise Fuel Reporting System.--Section 143(c) of such 
     title is amended--
       [(1) in paragraph (1) by striking ``Not later than August 
     1, 1998,'' and inserting ``Not later than 90 days after 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003,''; by striking 
     ``development'' and inserting ``completion, operation,''; by 
     striking ``an excise fuel reporting system'' and inserting 
     ``the excise summary terminal activity reporting system''; 
     and by striking ``(in this subsection referred to as the 
     ``system'')'';
       [(2) in paragraph (2)--
       [(A) by striking ``the system'' each place it appears and 
     inserting ``the excise summary terminal activity reporting 
     system'';
       [(B) in subparagraph (A), by striking ``develop'' and 
     inserting ``complete'';
       [(C) by striking ``and'' at the end of subparagraph (B);
       [(D) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       [(E) by adding at the end the following new subparagraph:
       [``(D) the Commissioner of the Internal Revenue Service 
     shall submit and the Secretary shall approve a budget and 
     project plan for the completion, operation, and maintenance 
     of the excise summary terminal activity reporting system.''; 
     and
       [(3) by amending paragraph (3) to read as follows:
       [``(3) Funding.--Of the amounts made available to carry out 
     this section for each of fiscal years 2004 through 2009, the 
     Secretary shall make funds available to the Internal Revenue 
     Service to complete, operate, and maintain the excise summary 
     terminal activity reporting system in accordance with this 
     subsection.''.
       [(c) Registration System and Electronic Database.--Section 
     143 as amended by this Act is further amended by adding at 
     the end the following new subsections:
       [``(d) Pipeline, Vessel, and Barge Registration System.--
       [``(1) In general.--Not later than 90 days after enactment 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, the Secretary shall enter 
     into a memorandum of understanding with the Commissioner of 
     the Internal Revenue Service for the purposes of the 
     development, operation, and maintenance of a registration 
     system for pipelines, vessels, and barges, and operators of 
     such pipelines, vessels, and barges, that make bulk transfers 
     of taxable fuel.
       [``(2) Elements of memorandum of understanding.--The 
     memorandum of understanding shall provide that--
       [``(A) the Internal Revenue Service shall develop and 
     maintain the registration system through contracts;
       [``(B) the Commissioner of the Internal Revenue Service 
     shall submit and the Secretary shall approve a budget and 
     project plan for development, operation, and maintenance of 
     the registration system;
       [ ``(C) the registration system shall be under the control 
     of the Internal Revenue Service; and
       [``(D) the registration system shall be made available for 
     use by appropriate State and Federal revenue, tax, and law 
     enforcement authorities, subject to section 6103 of the 
     Internal Revenue Code of 1986.
       [``(3) Funding.--Of the amounts made available to carry out 
     this section for each of fiscal years 2004 through 2009, the 
     Secretary shall make funds available to the Internal Revenue 
     Service to complete, operate, and maintain a registration 
     system for pipelines, vessels, and barges, and operators of 
     such pipelines, vessels, and barges, that make bulk transfers 
     of taxable fuel in accordance with this subsection.
       [``(e) Heavy Vehicle Use Tax Payment Database.--
       [``(1) In general.--Not later than 90 days after enactment 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, the Secretary shall enter 
     into a memorandum of understanding with the Commissioner of 
     the Internal Revenue Service for the purposes of the 
     establishment, operation, and maintenance of an electronic 
     database of heavy vehicle highway use tax payments.
       [``(2) Elements of memorandum of understanding.--The 
     memorandum of understanding shall provide that--
       [``(A) the Internal Revenue Service shall establish and 
     maintain the electronic database through contracts;
       [``(B) the Commissioner of the Internal Revenue Service 
     shall submit and the Secretary shall approve a budget and 
     project plan for establishment, operation, and maintenance of 
     the electronic database;
       [``(C) the electronic database shall be under the control 
     of the Internal Revenue Service; and
       [``(D) the electronic database shall be made available for 
     use by appropriate State and Federal revenue, tax, and law 
     enforcement authorities, subject to section 6103 of the 
     Internal Revenue Code of 1986.
       [``(3) Funding.--Of the amounts made available to carry out 
     this section for each of fiscal years 2004 through 2009, the 
     Secretary shall make funds available to the Internal Revenue 
     Service to establish, operate, and maintain an electronic 
     database of heavy vehicle highway use tax payments in 
     accordance with this subsection.
       [``(f) Reports.--By March 30 and September 30 of each year, 
     the Internal Revenue Service shall provide reports to the 
     Secretary on the status of the Internal Revenue Service 
     projects funded under this section related to the excise 
     summary terminal activity reporting system; the pipeline, 
     vessel, and barge registration system; and the heavy vehicle 
     use tax electronic database.''.
       [(d) Allocations.--Of the amounts authorized to be 
     appropriated under section 1101(a)(14) of this Act for 
     Highway Use Tax Evasion Projects for each of fiscal years 
     2004 through 2009, $4,500,000 shall be allocated to the 
     States, and for fiscal year 2004, $20,050,000 shall be 
     allocated to the Internal Revenue Service, of which 
     $10,500,000 shall be dedicated to the excise summary terminal 
     activity reporting system, for each of fiscal years 2005 and 
     2006, $48,000,000 shall be allocated to the Internal Revenue 
     Service, of which $4,500,00 shall be dedicated to the excise 
     summary terminal activity reporting system, for fiscal year 
     2007, $38,000,000 shall be allocated to the Internal Revenue 
     Service, of which $4,500,00 shall be dedicated to the excise 
     summary terminal activity reporting system, and for each of 
     fiscal years 2008 and 2009, $4,500,000 shall be allocated to 
     the Internal Revenue Service, which shall be used for the 
     excise summary terminal activity reporting system.

       [Subtitle D--Program Efficiencies and Improvements--Safety

     [SEC. 1401. NATIONAL HIGHWAY SAFETY GOAL; NATIONAL BLUE 
                   RIBBON COMMISSION ON HIGHWAY SAFETY.

       [(a) National Highway Safety Goal.--Section 101 of title 
     23, United States Code, is amended by adding at the end the 
     following new subsection:
       [``(f) It is hereby declared to be in the national interest 
     that the number of deaths attributable to traffic accidents 
     on America's highways be significantly reduced. To achieve 
     this goal, a national initiative targeted at saving lives 
     through improved engineering, education, enforcement, and 
     emergency response in cooperation with new and existing State 
     and local safety programs is hereby authorized.''.
       [(b) National Blue Ribbon Commission on Highway Safety.--
       [(1) Establishment.--The Secretary shall establish a 
     National Blue Ribbon Commission on Highway Safety 
     (hereinafter in this section referred to as ``the 
     Commission'').
       [(2) Membership.--
       [(A) Composition.--The Commission shall be composed of 15 
     members as follows--
       [(i) the Secretary or the Secretary's delegate;
       [(ii) the Administrators of the Federal Highway 
     Administration; the National Highway Traffic Safety 
     Administration; the Federal Motor Carrier Safety 
     Administration; and the Federal Railroad Administration, or 
     the Administrators' delegates; and
       [(iii) 10 members appointed by the Secretary from among 
     individuals who represent the interests of States and 
     political subdivisions of States, the safety community, 
     public health, and State and local law enforcement agencies, 
     and who have been nominated by the Committee on Environment 
     and Public Works and the Committee on Commerce, Science and 
     Transportation of the United States Senate and the Committee 
     on Transportation and Infrastructure of the United States 
     House of Representatives.
       [(B) Appointment.--The Secretary shall select the 
     individuals to be appointed under this subsection on the 
     basis of their knowledge, expertise, or experience related to 
     highway safety. Half of the appointments shall be made from 
     nominees submitted by the Committee on Environment and Public 
     Works and the Committee on Commerce, Science and 
     Transportation of the Senate and the other half from the 
     nominees submitted by the Committee on Transportation and 
     Infrastructure of the House of Representatives. Each of these 
     committees shall nominate 20 individuals qualified to serve 
     on the Commission.
       [(C) Terms.--The term of each member of the Commission 
     shall be 6 years. Any vacancy shall be filled in the manner 
     the original appointment was made. The vacancy does not 
     affect the Commission's powers.
       [(3) Function.--The Commission, to carry out the direction 
     of Congress, under section 101(f) of title 23, United States 
     Code as amended by this Act, that the number of deaths 
     attributable to traffic accidents on America's highways be 
     significantly reduced, shall--
       [(A) oversee a comprehensive study evaluating the Nation's 
     highway safety needs over

[[Page 750]]

     the next three decades in the areas of engineering, 
     education, enforcement, and emergency response and, based on 
     such study, make specific recommendations to the Secretary 
     for an achievable national goal for the reduction of highway 
     fatalities and for the funding necessary to achieve such 
     goal;
       [(B) assist in developing a national consensus in support 
     of such goal; and
       [(C) advise, consult with, and make recommendations to, the 
     Secretary to assist in identifying specific measures for 
     achieving the national highway safety goal.
       [(4) Specific matters to be addressed.--The national 
     highway safety goal study conducted by the Commission shall 
     examine the roles of highway infrastructure, drivers, and 
     vehicles in fatalities on all public roads; identify high 
     risk areas and activities associated with the greatest 
     numbers of highway fatalities; examine the roles of various 
     levels of government agencies and non-governmental 
     organizations in reducing highway fatalities and recommend 
     ways to strengthen highway safety partnerships; and identify 
     measures that will save the most lives both long term and 
     short term. The study shall consider, among other things, the 
     findings, conclusions, and recommendations of highway safety 
     studies and research conducted by the Transportation Research 
     Board, including studies related to implementation of the 
     American Association of State Highway and Transportation 
     Officials' Strategic Highway Safety Plan.
       [(5) Reports to congress.--
       [(A) Initial report.--Not later than September 30, 2006, 
     the Commission shall transmit to Congress an initial report 
     on the results of the national highway safety goal study, 
     including recommendations and such legislative 
     recommendations as the President judges necessary and 
     expedient for an achievable national goal for the reduction 
     of highway fatalities and for preliminary strategies to be 
     implemented to achieve such goal.
       [(B) Final report.--Not later than February 1, 2009, the 
     Commission shall transmit to Congress a final report on the 
     results of the national highway safety goal study, including 
     recommendations and such legislative recommendations as the 
     President judges necessary and expedient for a comprehensive 
     plan with specific strategies to achieve the fatality 
     reduction goal recommended in the initial report and for the 
     level of funding necessary to implement such fatality 
     reduction plan and strategies.
       [(6) Termination of commission.--The Commission shall 
     terminate on the 180th day following the date of transmittal 
     of the final report to Congress under paragraph (5)(B) of 
     this subsection. By the 180th day, all records and papers of 
     the Commission shall be delivered to the Administrator of the 
     General Services Administration for deposit in the National 
     Archives.
       [(7) Authorization of appropriations.--There are authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) up to $3,000,000 for fiscal year 
     2004, $1,000,000 for fiscal year 2005, $1,000,000 for fiscal 
     year 2006, $1,000,000 for fiscal year 2007, $500,000 for 
     fiscal year 2008, and $500,000 for fiscal year 2009 for the 
     purposes of carrying out this subsection.
       [(8) Applicability of title 23.--Funds authorized by this 
     subsection shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23, United States Code, except that the Federal share 
     of the cost of the study and the Commission under this 
     section shall be 100 percent, and such funds shall remain 
     available until expended.

     [SEC. 1402. HIGHWAY SAFETY IMPROVEMENT PROGRAM; FLEXIBILITY 
                   FOR SAFETY INITIATIVES.

       [(a) Establishment of Program.--Chapter 1 of title 23, 
     United States Code, is amended by inserting the following new 
     section after section 149:

     [``Sec. 150. Highway Safety Improvement Program

       [``(a) Establishment.--The Secretary shall establish and 
     implement a highway safety improvement program in accordance 
     with this section, in order to significantly reduce 
     fatalities and serious injuries on the Nation's roadway 
     system.
       [``(b) Program.--
       [``(1) State responsibilities.--To receive funds under this 
     section, each State shall have a process in place that 
     identifies and analyzes highway safety problems and 
     opportunities and will produce a program of projects for 
     funding under this section based on this analysis. Such 
     process and program of projects shall be known as the Highway 
     Safety Improvement Program. The statewide program shall 
     identify hazardous locations, sections, and elements 
     including roadside obstacles, railway-highway crossing needs, 
     and unmarked or poorly marked roads that may constitute a 
     danger to motorists, bicyclists, pedestrians, and other 
     highway users. States shall also have crash data systems and 
     the ability to perform safety problem identification and 
     countermeasure analysis.
       [``(2) Program administration.--The Secretary shall 
     establish implementing guidelines for this program, which 
     shall include at a minimum the following components:
       [``(A) Strategic approach to highway safety.--Each State 
     shall, as appropriate, adopt strategic and performance-based 
     goals for its Highway Safety Improvement Program. This 
     statewide program shall address safety problems and 
     opportunities on all roadways within the State, focus 
     resources on areas of greatest need, and be complementary to 
     the programs developed in response to section 402 of this 
     title.
       [``(B) Data improvement program.--Each State shall, as 
     appropriate, advance its capabilities for traffic records 
     data collection, analysis, and integration with other sources 
     of safety data such as roadway inventories. Such a data 
     improvement program shall be complementary to the programs 
     supported by sections 402 and 412 of this title; include all 
     public roads; and contain provisions to identify hazardous 
     locations, sections, and elements on these public roads that 
     constitute a danger to motorists, bicyclists, and 
     pedestrians.
       [``(C) Program of improvements.--Each State shall determine 
     priorities for the correction of hazardous roadway locations, 
     sections, and elements, including railway-highway crossing 
     improvements, as identified through crash data analysis; 
     identify opportunities for preventing the development of such 
     hazardous conditions; and establish and implement a schedule 
     of safety improvement projects for hazard correction and 
     hazard prevention.
       [``(D) Evaluation.--Each State shall, as appropriate, 
     establish an evaluation process to analyze and assess results 
     achieved by safety improvement projects carried out in 
     accordance with procedures and criteria established by this 
     section, and such information shall be used in setting 
     priorities for safety improvement projects.
       [``(c) Reports.--Each State shall report to the Secretary 
     on progress being made to implement safety improvement 
     projects under this section and the effectiveness of such 
     improvements. The Secretary shall establish the content and 
     schedule for such reports.
       [``(d) Eligible Projects.--
       [``(1) In general.--A State may obligate funds apportioned 
     to it under this section for any safety improvement project 
     on any public road or publicly-owned bicycle or pedestrian 
     pathway or trail.
       [``(2) Safety improvement project.--For purposes of this 
     section the term `safety improvement project' means a project 
     that corrects or improves a hazardous roadway location or 
     feature, or proactively addresses highway safety problems, 
     including: intersection improvements, pavement and shoulder 
     widening, installation of rumble strips and other warning 
     devices, improving skid resistance, improvements for 
     pedestrian or bicyclist safety, railway-highway crossing 
     safety, traffic calming, elimination of roadside obstacles, 
     improving highway signage and pavement marking, installing 
     priority control systems for emergency vehicles at signalized 
     intersections, installing traffic control or warning devices 
     at locations with high accident potential, safety conscious 
     planning, and improving crash data collection and analysis.
       [``(e) Funding.--Sums authorized to be appropriated to 
     carry out this section shall be apportioned in accordance 
     with section 104(b)(5).
       [``(f) Federal Share.--The Federal share payable on account 
     of any project carried out under this section shall be 90 
     percent of the cost thereof.
       [``(g) Use of Funds.--Beginning in fiscal year 2005 and for 
     each fiscal year thereafter, 10 percent of the funds 
     available to a State to carry out the highway safety 
     improvement program established in accordance with this 
     section shall be obligated for projects under section 402 of 
     this title, unless by October 1 of the fiscal year in which 
     funds become available to a State the State has enacted a 
     primary safety belt law or the State demonstrates that the 
     safety belt use rate in that State meets or exceeds 90 
     percent. A State subject to the provisions of this subsection 
     must have in place or adopt a strategic highway safety plan 
     in accordance with section 151 of this title. Activities 
     funded under this subsection shall be consistent with such a 
     plan.
       [``(h) Use of Other Funding for Safety.--Nothing in this 
     section shall be interpreted to prohibit the use of funds 
     made available under other sections of this title for highway 
     safety improvement projects, and States are to be encouraged 
     to address the full scope of their safety needs and 
     opportunities by using other funds unless provisions exist 
     that prohibit such use.''.
       [(b) Apportionment of Highway Safety Improvement Program 
     Funds.--Section 104 of such title is amended--
       [(1) by inserting in subsection (a) ``the Highway Safety 
     Improvement Program under section 150,'' after ``section 
     204,'';
       [(2) by inserting in subsection (b) ``the Highway Safety 
     Improvement Program,'' after ``Improvement Program,''; and
       [(3) by adding at the end of subsection (b) the following 
     new paragraph:
       [``(5) Highway safety improvement program.--
       [``(A) In general.--For the Highway Safety Improvement 
     Program, in accordance with the following formula:
       [``(i) 25 percent of the apportionments in the ratio that--

       [``(I) the total lane miles of Federal-aid highways in each 
     State; bears to

[[Page 751]]

       [``(II) the total lane miles of Federal-aid highways in all 
     States.

       [``(ii) 40 percent of the apportionments in the ratio 
     that--

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

       [``(iii) 35 percent of the apportionments in the ratio 
     that--

       [``(I) the estimated tax payments attributable to highway 
     users in each State paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available; bears to
       [``(II) the estimated tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available.

       [``(B) Minimum apportionment.--Notwithstanding subparagraph 
     (A), each State shall receive a minimum of \1/2\ of 1 percent 
     of the funds apportioned under this paragraph.''.
       [(c) Flexibility for Safety Initiatives.--Chapter 1 of such 
     title, as amended by this Act, is further amended--
       [(1) by repealing section 152;
       [(2) by redesignating section 151 as section 152; and
       [(3) by inserting the following new section 151 after 
     section 150:

     [``Sec. 151. Flexibility for safety initiatives

       [``(a) In General.--As provided in this section, a State 
     that develops and implements a strategic highway safety plan 
     and comprehensive safety planning process shall have the 
     flexibility to use funds available under section 150 of this 
     title, the Highway Safety Improvement Program, for title 23 
     safety purposes not otherwise eligible under such section, 
     including funding for public awareness, education, and 
     enforcement.
       [``(b) Strategic Highway Safety Plan.--To qualify for 
     flexible safety funding as provided under this section, the 
     State strategic highway safety plan must--
       [``(1) be based on a collaborative process that includes 
     the State Department of Transportation, the Governor's 
     Representative for Highway Safety, persons responsible for 
     administering section 130 of this title at the State level, 
     and other major State and local safety stakeholders, 
     including Operation Lifesaver;
       [``(2) address engineering, education, enforcement, and 
     emergency services elements of highway safety;
       [``(3) consider the results of existing State 
     transportation and highway safety planning processes; and
       [``(4) be certified by the Secretary, in consultation with 
     the Federal Highway Administration and the National Highway 
     Traffic Safety Administration, as based on a comprehensive, 
     collaborative process, and effective analyses of State crash 
     data.
       [``(c) Safety Activities Consistent With Plan.--To qualify 
     for the flexible use of funds available under sections 150 
     and 402(k) in accordance with this section, activities must 
     be consistent with the State strategic highway safety plan.
       [``(d) Other Transportation and Highway Safety Plans.--
     Nothing in this section shall require a State to revise 
     existing State processes, plans, or programs.
       [``(e) Flexible Funding.--A State that receives funds under 
     section 150 shall use such funds for projects eligible under 
     such section, except that up to 50 percent of such funds may 
     be used for activities eligible for assistance under section 
     402 of this title that are consistent with the State's 
     strategic highway safety plan and not otherwise eligible for 
     assistance under section 150.''.
       [(d) Elimination of Surface Transportation Program Set-
     Aside.--Section 133(d) of such title is amended by striking 
     paragraph (1) and by redesignating paragraphs (2) through (5) 
     as paragraphs (1) through (4), respectively.
       [(e) Conforming Amendments.--
       [(1) The analysis for chapter 1 of such title is amended--
       [(A) by striking the item relating to section 152;
       [(B) by renumbering ``151. National bridge inspection 
     program.'' as ``152''; and
       [(C) by inserting after the item relating to section 149 
     the following:

[``150. Highway Safety Improvement Program.
[``151. Flexibility for safety initiatives.''.

       [(2) Section 130 of such title is amended--
       [(A) by striking subsections (e) and (f) and redesignating 
     subsections (g) through (j) as (e) through (h), respectively; 
     and
       [(B) in subsection (f), as redesignated by this Act, by 
     striking ``authorized to be appropriated to carry out this 
     section'' and inserting ``made available as provided under 
     section 150 of this title to carry out this section''.
       [(3) Section 154(c)(3) of such title is amended by striking 
     ``152'' and inserting ``150''.
       [(4) Section 164(b)(3) of such title is amended by striking 
     ``152'' and inserting ``150''.
       [(5) Section 409 of such title is amended by striking 
     ``152'' and inserting ``150''.

     [SEC. 1403. OPERATION LIFESAVER.

       [Section 104(d)(1) of title 23, United States Code, is 
     amended by striking ``$500,000'' and inserting ``$600,000''.

     [SEC. 1404. HIGHWAY SAFETY PROGRAMS; CERTIFICATION OF PUBLIC 
                   ROAD MILEAGE.

       [Section 402(c) of title 23, United States Code, is amended 
     by striking in the fifth sentence ``the Governor of''.

      [Subtitle E--Program Efficiencies and Improvements--Planning

     [SEC. 1501. METROPOLITAN PLANNING.

       [Section 134 of title 23, United States Code, is amended by 
     striking subsections (a) through (o) and inserting the 
     following:
       [``Metropolitan planning shall be carried out in accordance 
     with section 5203 of title 49, United States Code.''.

     [SEC. 1502. STATEWIDE PLANNING.

       [Section 135 of title 23, United States Code, is amended by 
     striking subsections (a) through (i) and inserting the 
     following:
       [``Statewide planning shall be carried out in accordance 
     with section 5204 of title 49, United States Code.''.

     [SEC. 1503. STATE PLANNING AND RESEARCH.

       [(a) State Planning and Research.--Chapter 5 of title 23, 
     United States Code, is amended by striking section 505.
       [(b) Conforming Amendment.--The analysis for chapter 5 of 
     such title is amended by striking the item related to section 
     505.
       [(c) Apportionment.--Section 104 of title 23, United States 
     Code, is amended--
       [(1) by redesignating subsections (i), (j), (k), and (l) as 
     subsections (k), (l), (m), and (n), respectively; and
       [(2) by inserting after subsection (h) the following:
       [``(i) State Planning and Research.--
       [``(1) In general.--Two and \1/2\ percent of the sums 
     apportioned to a State for each fiscal year under this 
     section (other than subsections (f) and (h)) and under 
     sections 105 and 144 of this title shall be available for 
     expenditure by the State, in consultation with the Secretary, 
     only for the following purposes:
       [``(A) Engineering and economic surveys and investigations.
       [``(B) The planning of future highway and local public 
     transportation systems, the planning of the financing of such 
     systems, and metropolitan and statewide planning under 
     sections 134 and 135 of this title, including freight 
     planning, safety planning, transportation systems management 
     and operations planning, transportation-related land use 
     planning, and transportation-related growth management 
     activities within these planning processes and planning 
     capacity building activities described in section 104(j) of 
     this title.
       [``(C) Development and implementation of infrastructure 
     management and traffic monitoring systems under section 303 
     of this title and for asset management activities.
       [``(D) Studies of the economy, safety, and convenience of 
     highway and local public transportation systems and the 
     desirable regulation and equitable taxation of their use.
       [``(E) Research, development, and technology transfer 
     activities necessary in connection with the planning, design, 
     construction, management, maintenance, regulation, and 
     taxation of the use of highway, local public transportation, 
     and intermodal transportation systems.
       [``(F) Study, research, and training on the engineering 
     standards and construction materials, including accreditation 
     of inspection and testing, for highway, local public 
     transportation, and intermodal transportation systems.
       [``(2) Minimum expenditures on research, development, and 
     technology transfer activities.--
       [``(A) In general.--Subject to subparagraph (B), not less 
     than 20 percent of the funds subject to paragraph (1) for a 
     fiscal year shall be expended by the State for research, 
     development, and technology transfer activities described in 
     paragraph (1), relating to highway, local public 
     transportation, and intermodal transportation systems.
       [``(B) Waivers.--The Secretary may waive the application of 
     subparagraph (A) with respect to a State for a fiscal year if 
     the State certifies to the Secretary for the fiscal year that 
     the funds described in subparagraph (A) are not needed for 
     research, development, and technology transfer and the 
     Secretary accepts such certification.
       [``(C) Nonapplicability of assessment.--Funds expended 
     under subparagraph (A) shall not be considered to be part of 
     the extramural budget of the agency for the purpose of 
     section 9 of the Small Business Act (15 U.S.C. 638).
       [``(3) Minimum expenditures for improving the quality of 
     collection and reporting of strategic surface transportation 
     data.--
       [``(A) In general.--Subject to subparagraph (B), not less 
     than 20 percent of the funds subject to paragraph (1) for a 
     fiscal year shall be expended by the State to improve the 
     collection and reporting of strategic surface transportation 
     data to provide critical information about the extent, 
     condition, use, performance, and financing of the Nation's 
     highways (including intermodal connectors) for passenger and 
     freight movement.
       [``(B) Waivers.--The Secretary may waive the application of 
     subparagraph (A) with respect to a State for a fiscal year if 
     the State

[[Page 752]]

     certifies to the Secretary for the fiscal year that the State 
     is collecting and reporting strategic data consistent with 
     quality assurance guidelines developed cooperatively with the 
     States and the Secretary approves such certification. If such 
     waiver is approved, the funds may be used for the activities 
     described in paragraph (1) of this subsection.
       [``(4) Federal share.--The Federal share of the cost of a 
     project carried out using funds subject to paragraph (1) 
     shall be matched in accordance with section 120(b) unless the 
     Secretary determines that the interests of the Federal-aid 
     highway program would be best served without such matching.
       [``(5) Administration of sums.--Funds subject to paragraph 
     (1) shall be combined and administered by the Secretary as a 
     single fund and shall be available for obligation for the 
     same period as funds apportioned under section 104(b)(1).''.

     [SEC. 1504. CRITICAL REAL PROPERTY ACQUISITION.

       [Section 108 of title 23, United States Code, is amended by 
     adding at the end the following:
       [``(d) Critical Real Property Acquisition.--
       [``(1) Subject to paragraph (2), funds apportioned to a 
     State under this title may be used to participate in the 
     payment of costs incurred in the acquisition of real property 
     that is deemed critical, as determined under paragraph (2), 
     for any project proposed for funding under this title, prior 
     to the completion of any required environmental reviews for 
     property acquisition.
       [``(2) The Federal share payable of the costs described in 
     paragraph (1) shall be eligible for reimbursement out of 
     funds apportioned to a State under this title if, prior to 
     acquisition, the State demonstrates to the Secretary, and the 
     Secretary determines, that the property is offered for sale 
     on the open market, that the State will comply fully with the 
     Uniform Relocation Assistance and Real Property Acquisition 
     Policies Act in acquiring the property, and that immediate 
     acquisition of the property is critical because either--
       [``(A) normal appraisal techniques show that the property's 
     value is increasing significantly;
       [``(B) there is an imminent threat of development or 
     redevelopment of the property; or
       [``(C) the property is necessary for the implementation of 
     the goals as stated in the project proposal.
       [``(3) An acquisition undertaken pursuant to this section 
     shall be considered to be an exempt project under section 176 
     of the Clean Air Act and its implementing regulations.
       [``(4) No project development activity may be undertaken on 
     property acquired in accordance with paragraph (2) until any 
     required environmental reviews for the project have been 
     completed.
       [``(5) The number of critical acquisitions associated with 
     a project shall be limited and shall not affect the 
     consideration of project alternatives during the 
     environmental review process.
       [``(6) Section 156 (c) of this title shall not apply to the 
     sale, use or lease of any property acquired in accordance 
     with paragraph (2).''.

     [SEC. 1505. PLANNING CAPACITY BUILDING INITIATIVE.

       [Section 104 of title 23, United States Code, is amended by 
     inserting after subsection (i), as added by this Act, the 
     following:
       [``(j) Planning Capacity Building Initiative.--
       [``(1) In general.--The Secretary shall establish a 
     planning capacity building initiative to support enhancements 
     in transportation planning, in order to--
       [``(A) strengthen metropolitan and statewide transportation 
     planning under chapter 52 of title 49;
       [``(B) enhance tribal capacity to conduct joint 
     transportation planning under Chapter 2 of this title; and
       [``(C) participate in the metropolitan and statewide 
     transportation planning programs under chapter 52 of title 
     49.
       [``(2) Priority.--The Secretary shall give priority to 
     planning practices and processes that support homeland 
     security planning, performance based planning, safety 
     planning, operations planning, freight planning, and 
     integration of environment and planning.
       [``(3) Use of funds.--Funds authorized for this program may 
     be used for research, program development, information 
     collection and dissemination, and technical assistance. The 
     Secretary may use these funds independently or make grants 
     to, or enter into contracts, cooperative agreements, and 
     other transactions, with a Federal agency, State agency, 
     local agency, federally recognized Indian tribal government 
     or tribal consortium, authority, association, nonprofit or 
     for-profit corporation, or institution of higher education, 
     to carry out the purposes of this subsection.
       [``(4) Set-aside.--On October 1 of each fiscal year, the 
     Secretary, after making the deductions authorized by 
     subsections (a) and (f) of section 104 of this title, shall 
     set aside $20,000,000 of the remaining funds authorized for 
     the Surface Transportation Program to carry out the 
     requirements of this subsection.
       [``(5) Federal share.--The Federal share of the cost of an 
     activity carried out using such funds shall be up to 100 
     percent, and such funds shall remain available until 
     expended.
       [``(6) Administration.--This initiative shall be 
     administered by the Federal Highway Administration in 
     cooperation with the Federal Transit Administration.''.

    [Subtitle F--Program Efficiencies and Improvements--Environment

     [SEC. 1601. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT 
                   PROGRAM.

       [(a) Eligible Projects.--Section 149(b) of title 23, United 
     States Code, is amended--
       [(1) in the first paragraph, by inserting ``and, the 
     project or program will reduce emissions to contribute to the 
     attainment or maintenance of the National Ambient Air Quality 
     Standard for which the area is or was designated 
     nonattainment,'' after ``December 31, 1997,'';
       [(2) in subsection (1)(A), by striking ``(other than clause 
     (xvi) of such section)'';
       [(3) in paragraph (1)(A)(ii), by inserting ``by providing 
     new or enhanced transportation facilities or services to 
     further reduce emissions'' after ``area'';
       [(4) in paragraph (1)(B), by inserting ``or'' at the end 
     after ``section;'';
       [(5) in paragraph (2), by inserting ``or program'' after 
     ``and the project'', and by striking ``have air quality 
     benefits;'' and inserting ``reduce emissions; or'';
       [(6) in paragraph (3), by--
       [``(A) inserting ``if'' after ``(3)'';
       [``(B) striking ``contribute to the attainment of a 
     national ambient air quality standard'' and inserting 
     ``reduce emissions'';
       [``(C) striking the comma after ``traveled'' and inserting 
     ``or''; and
       [``(D) inserting ``through technological improvements such 
     as anti-idling equipment and diesel retrofits for trucks, 
     school buses, transit buses and other vehicles'' after 
     ``consumption,'';
       [(7) in paragraph (4), by inserting ``if the project or 
     program is'' after ``(4)'', and by striking ``contribute to 
     the attainment of a national ambient air quality standard'' 
     and inserting ``reduce emissions'';
       [(8) in paragraph (5), by striking ``that are eligible for 
     assistance under this section on the day before the date of 
     enactment of this paragraph'' and inserting ``that will 
     reduce emissions''; and
       [(9) in the final unnumbered paragraph, by striking the 
     second sentence.
       [(b) States Receiving Minimum Apportionment.--Section 
     149(c) of such title is amended in paragraphs (1) and (2) by 
     inserting ``OR MAINTENANCE'' after ``NONATTAINMENT'' in the 
     heading of each paragraph.
       [(c) Selection of Projects.--Section 149 of such title is 
     amended by adding at the end the following new paragraph:
       [``(f) Interagency Consultation.--The Secretary shall 
     encourage States and metropolitan planning organizations to 
     consult with State and local air quality agencies in 
     nonattainment and maintenance areas on the estimated 
     emissions reductions from proposed congestion mitigation and 
     air quality improvement programs and projects.''.
       [(d) Evaluation and Assessment of Projects.--Section 149 of 
     such title is amended by adding at the end the following new 
     paragraph:
       [``(g) Evaluation and Assessment of Projects.--
       [``(1) Evaluation and assessment.--The Secretary, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, shall evaluate and assess a representative 
     sample of projects funded under the Congestion Mitigation and 
     Air Quality Improvement Program for their actual impact on 
     emissions, and congestion levels and to assure effective 
     program implementation. Using appropriate assessments of 
     CMAQ-funded projects, and results from other research, the 
     Secretary shall maintain a cumulative database on these 
     impacts for broad dissemination.
       [``(2) Funding.--Funds set aside under section 104(o) of 
     this title shall be available to carry out this 
     subsection.''.
       [(e) Funding for Evaluation and Assessment of Projects.--
     Section 104 of such title is amended by adding at the end the 
     following new subsection:
       [``(o) Congestion Mitigation and Air Quality Improvement 
     Program Evaluation and Assessment of Projects.--Before making 
     apportionments under subsection (b)(2) of this section for a 
     fiscal year, the Secretary shall deduct 0.5 percent from the 
     amount to be apportioned for such fiscal year for the purpose 
     of carrying out the requirements of section 149(g) of this 
     title.''.
       [(f) Apportionments.--Section 104(b) of such title 23 is 
     amended--
       [(1) in paragraph (2)(B), by striking ``or'' after 
     ``ozone'' and inserting a comma, and by inserting ``, or fine 
     particulate matter (PM-2.5)'' after ``carbon monoxide'';
       [(2) by amending paragraph (2)(B)(i) to read as follows:
       [``(i) 1.0 if at the time of the apportionment, the area is 
     a maintenance area;'';
       [(3) in paragraph (2)(B)(vi), by striking ``or'' after the 
     semicolon;
       [(4) in paragraph (2)(B)(vii), by inserting ``for ozone'' 
     after ``maintenance area'', and striking ``for ozone'' after 
     ``section 149(b)'' and inserting ``or for PM-2.5'';
       [(5) by adding at the end of paragraph (2)(B) two new 
     clauses to read as follows:

[[Page 753]]

       [``(viii) 1.0 if, at the time of apportionment, any county, 
     not designated as a nonattainment or maintenance area under 
     the 1-hour ozone standard, is designated as nonattainment 
     under the 8-hour ozone standard; or
       [``(ix) 1.2 if, at the time of apportionment, the area is 
     not a nonattainment or maintenance area as described in 
     section 149(b) for ozone or carbon monoxide, but is an area 
     designated nonattainment under the PM-2.5 standard.'';
       [(6) by amending paragraph (2)(C) to read as follows:
       [``(C) Additional adjustment for carbon monoxide areas.--
     If, in addition to being designated as a nonattainment or 
     maintenance area for ozone as described in section 149(b), 
     any county within the area was also classified under subpart 
     3 of part D of title I of such Act (42 U.S.C. 7512 et seq.) 
     as a nonattainment or maintenance area described in section 
     149(b) for carbon monoxide, the weighted nonattainment or 
     maintenance area population of the county, as determined 
     under clauses (i) through (vi) of subparagraph (B), shall be 
     further multiplied by a factor of 1.2.''; and
       [(7) by redesignating paragraphs (2)(D) and (2)(E) as 
     (2)(E) and (2)(F) and inserting after paragraph (2)(C) a new 
     paragraph (2)(D) to read as follows:
       [``(D) Additional adjustment for pm 2.5 areas.--If, in 
     addition to being designated as a nonattainment or 
     maintenance area for ozone, carbon monoxide or both as 
     described in section 149(b), any county within the area was 
     also designated under the PM-2.5 standard as a nonattainment 
     or maintenance area, the weighted nonattainment or 
     maintenance area population of those counties shall be 
     further multiplied by a factor of 1.2.''.

     [SEC. 1602. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT 
                   DECISIONMAKING.

       [(a) Policy and Purpose.--
       [(1) Policy.--The Enlibra principles, as initially 
     developed by the Western Governors Association and adopted by 
     the National Governors Association, represent a sound basis 
     for interaction among the Federal, State, local governments, 
     and tribes on environmental matters and should be followed to 
     the maximum extent practicable in the development of highway 
     construction and public transit improvements. These 
     principles are:
       [(A) Assign responsibilities at the right level.
       [(B) Use collaborative processes to break down barriers and 
     find solutions.
       [(C) Move to a performance-based system.
       [(D) Separate subjective choices from objective data 
     gathering.
       [(E) Pursue economic incentives whenever appropriate.
       [(F) Ensure environmental understanding.
       [(G) Make sure environmental decisions are fully informed.
       [(H) Use appropriate geographic boundaries for 
     environmental problems.
       [(2) Purpose.--The purpose of this section is to reduce 
     delays in the delivery of highway construction and public 
     transit projects arising from the environmental review 
     process, while continuing to ensure the protection of the 
     human and natural environment.
       [(b) Coordinated Environmental Review Process.--
       [(1) Development and implementation.--The Secretary shall 
     develop and implement a coordinated environmental review 
     process for highway construction and public transit projects 
     that require--
       [(A) the preparation of an environmental impact statement 
     or environmental assessment under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), except that the 
     Secretary may decide not to apply this section to the 
     preparation of an environmental assessment under such Act; or
       [(B) the conduct of any other environmental review or 
     analysis, rendering of an opinion, or issuance of an 
     environmental permit, license, or approval under Federal law.
       [(2) Memorandum of understanding.--
       [(A) In general.--The coordinated environmental review 
     process may be specified for a particular project, class of 
     projects, or program and shall ensure that, whenever 
     practicable (as specified in this section), all environmental 
     reviews, analyses, opinions, and any permits, licenses, or 
     approvals that must be issued or made by any Federal agency 
     for the project concerned shall be conducted concurrently and 
     completed within a cooperatively determined time period. Such 
     process for a project, class of projects, or program may be 
     incorporated into a memorandum of understanding between the 
     Department of Transportation and affected Federal agencies 
     (and, where appropriate, State and local agencies and 
     federally recognized tribes).
       [(B) Establishment of time periods.--In establishing the 
     time period referred to in subparagraph (A), and any time 
     periods for review within such period, the Department and all 
     such agencies shall take into account their respective 
     resources and statutory commitments.
       [(c) Elements of Coordinated Environmental Review 
     Process.--For each project, the coordinated environmental 
     review process established under this section shall provide, 
     at a minimum, for the following elements:
       [(1) Federal agency identification.--The Secretary shall, 
     at the earliest possible time, identify all potential Federal 
     agencies that--
       [(A) have jurisdiction by law over or special expertise 
     related to environmental-related issues that may be affected 
     by the project and the analysis of which would be part of any 
     environmental document required by the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.); or
       [(B) may be required by Federal law to independently--
       [(i) conduct an environmental-related review or analysis 
     for the project;
       [(ii) determine whether to issue a permit, license, or 
     approval for the project; or
       [(iii) render an opinion on the environmental impact of the 
     project.
       [(2) Time limitations and concurrent review.--If requested 
     by the project sponsor, the Secretary and the head of each 
     Federal agency identified under paragraph (1)--
       [(A)(i) shall jointly develop and establish time periods 
     for review for--
       [(I) all Federal agency comments with respect to any 
     environmental documents required by the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for 
     the project; and
       [(II) all other independent Federal agency environmental 
     analyses, reviews, opinions, and decisions on any permits, 
     licenses, and approvals that must be issued or made for the 
     project; such that each such Federal agency's review shall be 
     undertaken and completed within such established time periods 
     for review; or
       [(ii) may enter into an agreement to establish such time 
     periods for review with respect to a class of projects or 
     programs; and
       [(B) shall ensure, in establishing such time periods for 
     review, that the conduct of any such analysis or review, 
     rendering of such opinion, and the issuance of such decision 
     is undertaken concurrently with all other environmental 
     reviews for the project, including the reviews required by 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.); except that such review may not be concurrent if 
     the affected Federal agency can demonstrate that such 
     concurrent review would result in a significant adverse 
     impact to the environment or substantively alter the 
     operation of Federal law or would not be possible without 
     information developed as part of the environmental review 
     process.
       [(3) Factors to be considered.--Time periods for review 
     established under this section shall be consistent with the 
     time periods established by the Council on Environmental 
     Quality under sections 1501.8 and 1506.10 of title 40, Code 
     of Federal Regulations.
       [(4) Extensions.--The Secretary shall extend any time 
     periods for review under this section if, upon good cause 
     shown, the Secretary and any Federal agency concerned 
     determine that additional time for analysis and review is 
     needed. Any memorandum of understanding shall be modified to 
     incorporate any mutually agreed-upon extensions.
       [(d) Clarification Regarding Environmental Impact 
     Statements Prepared by State and Local Transportation 
     Agencies.--Any project sponsor that is a State or local 
     governmental entity eligible to receive funds under this Act, 
     chapter I of title 23, United States Code; or chapter 53 of 
     title 49, United States Code, may, at the discretion of the 
     Secretary, serve as a joint lead agency with the Department 
     for purposes of preparing any environmental document under 
     the National Environmental Policy Act of 1969, as amended (42 
     U.S.C. 4321, et seq.), and may prepare any such environmental 
     documents required in support of any action or approval by 
     the Secretary, provided that the Department furnishes 
     guidance in such preparation and independently evaluates such 
     document, and provided that the document is approved and 
     adopted by the Secretary prior to the Secretary taking any 
     subsequent action or making any approval based on such 
     document, whether or not the Secretary's action or approval 
     results in Federal funding. The Secretary shall ensure that 
     the project sponsor complies with all design and mitigation 
     commitments made jointly by the Secretary and the project 
     sponsor in such environmental document, or that the document 
     is appropriately supplemented if project changes become 
     necessary. Any such environmental document prepared in 
     accordance with this subsection may be adopted or used by any 
     Federal agency making any approval to the same extent that 
     such Federal agency could adopt or use a document prepared by 
     another Federal agency.
       [(e) Dispute Resolution.--When the Secretary determines 
     that a Federal agency which is subject to a time period under 
     this section for its environmental review has failed to 
     complete its review, analysis, opinion, or decision on 
     issuing any permit, license, or approval within the 
     established time period or within any agreed-upon extension 
     to such time period, the Secretary may, after notice and 
     consultation with such agency, close the record on the matter 
     before the Secretary. If the Secretary finds, after timely 
     compliance with this section, that an environmental issue 
     related to the project over which an affected Federal agency 
     has jurisdiction under Federal law has not been resolved, the 
     Secretary and the head of the

[[Page 754]]

     Federal agency shall resolve the matter not later than 30 
     days after the date of the finding by the Secretary. The 
     dispute resolution procedures established pursuant to this 
     subsection may be initiated by the Secretary or by the 
     Governor of any State in which a highway construction or 
     public transit project is located, or by the head of any 
     Federal agency subject to the time period under this 
     subsection.
       [(f) Participation of State Agencies.--For any project 
     eligible for assistance under chapter 1 of title 23, United 
     States Code, a State, under State law, may require that all 
     State agencies that have jurisdiction by State or Federal law 
     over environmental-related issues that may be affected by the 
     project, or that are required to issue any environmental-
     related reviews, analyses, opinions, or determinations on 
     issuing any permits, licenses, or approvals for the project, 
     be subject to the coordinated environmental review process 
     established under this section unless the Secretary 
     determines that a State agency's participation would not be 
     in the public interest. If a State wishes to participate in 
     the review process, the State must require all such State 
     agencies with jurisdiction by law to be subject to and comply 
     with the review process to the same extent as a Federal 
     agency.
       [(g) Assistance to Affected State and Federal Agencies.--
       [(1) In general.--The Secretary may approve a request by a 
     State to provide funds made available under chapter 1 of 
     title 23, United States Code, or for a public transit project 
     made available under chapter 53 of title 49, United States 
     Code, to the State for the project, class of projects, or 
     program subject to the coordinated environmental review 
     process established under this section, to affected Federal 
     agencies, including the Department of Transportation, to 
     State agencies participating in the coordinated environmental 
     review process, and to federally recognized tribes, to 
     provide the resources necessary to meet any time limits 
     established under this section. The Secretary also may use 
     funds made available under section 204 of title 23, United 
     States Code, for the purposes specified under this 
     subsection.
       [(2) Amounts.--Such requests under paragraph (1) shall be 
     approved only--
       [(A) for the additional amounts that the Secretary 
     determines are necessary for the affected Federal agencies to 
     meet the time limits for environmental review; and
       [(B) if such time limits are less than the customary time 
     necessary for such review.
       [(h) Judicial Review and Savings Clause.--
       [(1) Judicial review.--Except as set forth under subsection 
     (i), nothing in this section shall affect the reviewability 
     of any final Federal agency action in a court of the United 
     States.
       [(2) Savings clause.--Nothing in this section shall affect 
     the applicability of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.) or any other Federal 
     environmental statute or affect the responsibility of any 
     Federal officer to comply with or enforce any such statute.
       [(i) Limitations on Claims.--Notwithstanding any other 
     provision of law, a claim arising under Federal law seeking 
     judicial review of a permit, license, or approval issued by a 
     Federal agency for a highway construction or public transit 
     project shall be barred unless it is filed within one hundred 
     eighty days after the permit, license, or approval is final 
     pursuant to the statute under which the agency action is 
     taken, unless a shorter time is specified in the Federal law 
     pursuant to which judicial review is allowed. Nothing in this 
     subsection shall create a right to judicial review or place 
     any limit on filing a claim that a person has violated the 
     terms of a permit, license, or approval.
       [(j) Repeal.--Section 1309 of the Transportation Equity Act 
     for the 21st Century (Public Law 105-178; 112 Stat. 232; June 
     9, 1998) is repealed.

     [SEC. 1603. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                   EXCLUSIONS.

       [(a) General.--Section 138 of title 23, United States Code, 
     is repealed and the following new section is inserted:

     [``Sec. 138. Assumption of responsibility for categorical 
       exclusions

       [``(a) Categorical Exclusion Determinations.--Upon mutual 
     agreement, the Secretary may assign and a State may assume 
     responsibility for determining whether certain designated 
     activities are included within classes of action identified 
     in regulation by the Secretary that are categorically 
     excluded from requirements for environmental assessments or 
     environmental impact statements pursuant to regulations 
     promulgated by the Council on Environmental Quality, or other 
     successor law or regulation. Such determinations shall be 
     made by a State pursuant to criteria established by the 
     Secretary and only for types of activities specifically 
     designated by the Secretary. Such criteria shall include 
     provision for public availability of information consistent 
     with the Freedom of Information Act (5 U.S.C. 552).
       [``(b) Other Applicable Federal Laws.--Upon mutual 
     agreement, the Secretary may assign and the State may assume 
     some or all of the Department's responsibilities for 
     environmental review, consultation, or other related actions 
     required under any Federal law applicable to activities that 
     are classified by the Secretary as categorical exclusions, 
     with the exception of government-to-government consultation 
     with Indian tribes, if the State also assumes decision-making 
     authority under this section. The State shall assume this 
     responsibility subject to the same procedural and substantive 
     requirements as would be required if that responsibility was 
     carried out by the Department. When a State assumes such 
     responsibility under a Federal law, it shall be solely 
     responsible and solely liable for complying with and carrying 
     out that law in lieu of the Department.
       [``(c) Agreements.--The Secretary and the State shall enter 
     into a memorandum of understanding setting forth the 
     responsibilities to be assigned under this section and the 
     terms and conditions under which such assignments are to be 
     made. Such memorandums of understanding shall be established 
     for periods of no more than three years. In the memorandum of 
     understanding the State shall consent to accept the 
     jurisdiction of the Federal courts for the compliance, 
     discharge, and enforcement of any responsibility of the 
     Secretary it may assume. The Secretary shall monitor the 
     State department of transportation's compliance with the 
     memorandum of understanding as well as the effectiveness of 
     the delegation, and will take into account the State's 
     performance in deciding whether and under what conditions to 
     renew a memorandum of understanding.
       [``(d) Termination.--The Secretary may terminate any 
     assumption of responsibility under this section upon a 
     determination that a State is not adequately carrying out its 
     assigned responsibilities.
       [``(e) State Subject to Federal Laws.--For purposes of 
     assuming the Secretary's responsibilities under this section, 
     the State agency signing the agreement in subsection (c) is 
     deemed to be a Federal agency to the extent the State is 
     carrying out the Secretary's responsibilities under the 
     National Environmental Policy Act, under this title, and 
     under any other Federal law.''.
       [(b) Conforming Amendment.--The analysis of chapter 1 of 
     title 23 is amended by striking ``Preservation of parklands'' 
     in the item relating to section 138 and inserting 
     ``Assumption of responsibility for categorical exclusions.''.

     [SEC. 1604. SECTION 4(F) POLICY ON LANDS, WILDLIFE AND 
                   WATERFOWL REFUGES, AND HISTORIC SITES.

       [Section 303 of title 49, United States Code, is amended to 
     read as follows:

     [``Sec. 303. Policy on lands, wildlife and waterfowl refuges, 
       and historic sites

       [``(a) It is the policy of the United States Government 
     that special effort should be made to preserve the natural 
     beauty of the countryside and public park and recreation 
     lands, wildlife and waterfowl refuges, and historic sites.
       [``(b) The Secretary of Transportation shall cooperate and 
     consult, when appropriate, with the Secretaries of the 
     Interior, Housing and Urban Development, and Agriculture, and 
     with the States, in developing transportation plans and 
     programs that include measures to maintain or enhance the 
     natural beauty of lands crossed by transportation activities 
     or facilities.
       [``(c)(1) The Secretary of Transportation may approve a 
     transportation program or project requiring the use of 
     publicly owned land of a public park, recreation area, or 
     wildlife and waterfowl refuge of national, State, or local 
     significance, or land of a historic site of national, State, 
     or local significance (as determined by the Federal, State, 
     or local officials having jurisdiction over the park, area, 
     refuge or site) only if--
       [``(A) there is no feasible and prudent alternative to 
     using that land, and
       [``(B) the program or project includes all possible 
     planning to minimize harm to the park, recreation area, 
     wildlife and waterfowl refuge, or historic site resulting 
     from the use.
       [``(2) In making approvals under this subsection, the 
     Secretary shall apply the following standards:
       [``(A) The Secretary may eliminate an alternative as 
     infeasible if the Secretary finds that the alternative cannot 
     be implemented as a matter of sound engineering.
       [``(B) The Secretary shall consider the following when 
     determining whether it would be prudent to avoid the use of 
     land of a resource subject to preservation under this 
     section:
       [``(i) The relative significance of the land of the 
     resource being protected.
       [``(ii) The views of the official or officials with 
     jurisdiction over the land.
       [``(iii) The relative severity of the adverse effects on 
     the protected activities, attributes, or features that 
     qualify a resource for protection.
       [``(iv) The ability to mitigate adverse effects.
       [``(v) The magnitude of the adverse effects that would 
     result from the selection of an alternative that avoids the 
     use of the land of the resource.
       [``(C) A mitigation measure or mitigation alternative under 
     paragraph (c)(1)(B) of this section is possible if it is 
     feasible and prudent. In evaluating the feasibility and 
     prudence of a mitigation measure or mitigation alternative 
     under paragraph (c)(1)(B) of this

[[Page 755]]

     section, the Secretary shall be governed by the standards of 
     paragraphs (c)(2)(A) and (B) of this subsection.
       [``(d) The requirements of this section do not apply to--
       [``(1) a project for a park road, parkway, or refuge road 
     under section 204 of title 23; or
       [``(2) a highway project on land administered by an agency 
     of the Federal government, when the purpose of the project is 
     to serve or enhance the values for which the land would 
     otherwise be protected under this section, as jointly 
     determined by the Secretary of Transportation and the head of 
     the appropriate Federal land managing agency.
       [``(e) The requirements of this section are deemed to be 
     satisfied where the treatment of an historic site (other than 
     a National Historic Landmark) has been agreed upon in 
     accordance with Section 106 of the National Historic 
     Preservation Act (16 U.S.C. 470f). The Secretary, in 
     consultation with the Advisory Council on Historic 
     Preservation, shall develop administrative procedures to 
     review the implementation of this subsection to ensure that 
     the objectives of the National Historic Preservation Act are 
     being met.
       [``(f)(1) The Secretary may approve a request by a State to 
     provide funds made available under chapter 1 of title 23, 
     United States Code, to a State historic preservation office, 
     Tribal historic preservation office, or to the Advisory 
     Council on Historic Preservation to provide the resources 
     necessary to expedite the historic preservation review and 
     consultation process under section 303 of title 49 and under 
     section 470f of title 16, United States Code.
       [``(2) The Secretary shall encourage States to provide such 
     funding to State historic preservation officers, tribal 
     historic preservation officers or the Advisory Council on 
     Historic Preservation where the investment of such funds will 
     accelerate completion of a project or classes of projects or 
     programs by reducing delays in historic preservation review 
     and consultation.
       [``(3) Such requests under paragraph (1) shall be approved 
     only for the additional amounts that the Secretary determines 
     are necessary for a State historic preservation office, 
     tribal historic preservation office, or the Advisory Council 
     on Historic Preservation to expedite the review and 
     consultation process and only where the Secretary determines 
     that such additional amounts will permit completion of the 
     historic preservation process in less than the time 
     customarily required for such process.''.

     [SEC. 1605. NATIONAL SCENIC BYWAYS PROGRAM.

       [(a) In General.--Section 162 of title 23, United States 
     Code, is amended--
       [(1) in subsection (a)(1), by inserting a comma after 
     ``Byways'' and by striking ``or All-American Roads'' and 
     inserting ``All-American Roads, or one of America's Byways'';
       [(2) in subsection (b)(1)(A), by inserting a comma after 
     ``Byways'' and by striking ``or All-American Roads,'' and 
     inserting ``All-American Roads, or one of America's 
     Byways,'';
       [(3) in subsection (b)(2)(A), by inserting a comma after 
     ``Byway'' and by striking ``or All-American Road'' and 
     inserting ``All-American Road, or one of America's Byways'';
       [(4) in subsection (b)(2)(B), by inserting a comma after 
     ``Byway'' and by striking ``or All-American Road'' and 
     inserting ``All-American Road, or one of America's Byways''; 
     and
       [(5) in subsection (c)(4), by striking ``passing lane,''.
       [(b) Research, Technical Assistance, Marketing, and 
     Promotion.--Section 162 of such title is further amended--
       [(1) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       [(2) by inserting after subsection (c) the following new 
     subsection:
       [``(d) Research, Technical Assistance, Marketing, and 
     Promotion.--
       [``(1) In general.--The Secretary may carry out research, 
     technical assistance, marketing, and promotion with respect 
     to State scenic byways, National Scenic Byways, All-American 
     Roads, or America's Byways.
       [``(2) Cooperation, grants, and contracts.--The Secretary 
     may make grants to or enter into contracts, cooperative 
     agreements, and other transactions with any Federal agency, 
     State agency, authority, association, institution, for-profit 
     or nonprofit corporation, organization, foreign country, or 
     person, including the center for national scenic byways in 
     Duluth, Minnesota, to carry out the provisions of this 
     subsection.
       [``(3) Funds.--The Secretary may use funds made available 
     for the National Scenic Byways Program to carry out projects 
     and activities under this subsection.
       [``(4) Priority.--The Secretary shall give priority to 
     partnerships that leverage private, Federal , or other public 
     funds for research, technical assistance, marketing and 
     promotion.''; and
       [(3) by adding the following at the end of subsection (g): 
     ``The Federal share of the cost of projects or activities 
     under subsection (d) may be up to 100 percent.''.

     [SEC. 1606. RECREATIONAL TRAILS PROGRAM.

       [(a) Recreational Trails Program Formula.--Section 
     104(h)(1) of title 23, United States Code, is amended by 
     striking ``research and technical assistance under the 
     recreational trails program and for the administration of the 
     National Recreational Trails Advisory Committee'' and 
     inserting ``research, technical assistance, and training 
     under the recreational trails program''.
       [(b) Recreational Trails Program Administration.--Section 
     206 of title 23, United States Code, is amended--
       [(1) by striking subsection (c) and inserting the 
     following:
       [``(c) State Responsibilities.--
       [``(1) Eligibility.--To be eligible for apportionments 
     under this section--
       [``(A) the Governor of the State shall designate the State 
     agency or agencies that will be responsible for administering 
     apportionments made to the State under this section; and
       [``(B) the State shall establish a State recreational trail 
     committee that--
       [``(i) has not less than 30 percent of its voting 
     membership representing nonmotorized recreational trail 
     users,
       [``(ii) has not less than 30 percent of its voting 
     membership representing motorized recreational trail users,
       [``(iii) must meet not less than once per Federal fiscal 
     year in a publicly announced public meeting, and
       [``(iv) must be used to develop statewide trail program 
     policy and to rate, rank, and recommend recreational trails 
     program projects for funding.
       [``(2) Obligation requirement.--If a State does not meet 
     the committee requirements within a fiscal year, it is not 
     eligible for an apportionment in the following fiscal 
     year.'';
       [(2) by striking subsection (d)(2) and inserting the 
     following:
       [``(2) Permissible uses.--Permissible uses of funds 
     apportioned to a State for a fiscal year to carry out this 
     section include--
       [``(A) maintenance and restoration of existing recreational 
     trails;
       [``(B) development and rehabilitation of trailside and 
     trailhead facilities and trail linkages for recreational 
     trails;
       [``(C) purchase and lease of recreational trail 
     construction and maintenance equipment;
       [``(D) construction of new recreational trails, except 
     that, in the case of new recreational trails crossing Federal 
     lands, construction of the trails shall be--
       [``(i) permissible under other law;
       [``(ii) necessary and recommended by a statewide 
     comprehensive outdoor recreation plan that is required by the 
     Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
     4 et seq.) and that is in effect;
       [``(iii) approved by the administering agency of the State 
     designated under subsection (c)(1)(A); and
       [``(iv) approved by each Federal agency having jurisdiction 
     over the affected lands under such terms and conditions as 
     the head of the Federal agency determines to be appropriate, 
     except that the approval shall be contingent on compliance by 
     the Federal agency with all applicable laws, including the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et. 
     seq.), the Forest and Rangeland Renewable Resources Planning 
     Act of 1974 (16 U.S.C. 1600 et. seq.), and the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1701 et. seq.);
       [``(E) acquisition of easements and fee simple title to 
     property for recreational trails or recreational trail 
     corridors;
       [``(F) assessment of trail conditions for accessibility and 
     maintenance;
       [``(G) use of trail crews, youth conservation or service 
     corps, or other appropriate means to carry out activities 
     under this section;
       [``(H) operation of educational programs to promote safety 
     and environmental protection as those objectives relate to 
     the use of recreational trails, supporting non-law 
     enforcement trail safety and trail use monitoring patrol 
     programs, and providing trail-related training, but in an 
     amount not to exceed 5 percent of the apportionment made to 
     the State for the fiscal year; and
       [``(I) payment of costs to the State incurred in 
     administering the program, but in an amount not to exceed 7 
     percent of the apportionment made to the State for the fiscal 
     year to carry out this section.'';
       [(3) by striking subsection (d)(3)(C) and inserting the 
     following:
       [``(C) Use of youth conservation or service corps.--A State 
     shall make available not less than 10 percent of its 
     apportionments for grants, cooperative agreements, or 
     contracts with qualified youth conservation or service corps 
     to perform recreational trails program activities.'';
       [(4) in subsection (d)(3)(D), by striking ``(2)(F)'' and 
     inserting ``(2)(I)'';
       [(5) by amending subsection (f)--
       [(A) in paragraph (1)--
       [(i) by inserting ``and the Federal share of the 
     administrative costs of a State'' after ``project''; and
       [(ii) by striking ``not exceed 80 percent'' and inserting 
     in its place ``be determined in accordance with section 
     120(b)'';
       [(B) in paragraph (2)(A), by striking ``80 percent of'' and 
     inserting ``the amount determined in accordance with section 
     120(b) for'';
       [(C) in paragraph (2)(B), by inserting ``sponsoring the 
     project'' after ``Federal agency'';

[[Page 756]]

       [(D) by striking paragraph (5);
       [(E) by redesignating paragraph (4) as paragraph (5), and 
     by striking ``80 percent'' and inserting in its place ``the 
     Federal share as determined in accordance with section 
     120(b)''; and
       [(F) by inserting after paragraph (3)--
       [``(4) Use of recreational trails program funds to match 
     other federal program funds.--Notwithstanding any other 
     provision of law, funds made available under this section may 
     be used toward the non-Federal matching share for other 
     Federal program funds that are--
       [(A) expended in accordance with the requirements of the 
     Federal program relating to activities funded and populations 
     served; and
       [(B) expended on a project that is eligible for assistance 
     under this section.'';
       [(6) by inserting after subsection (h)(1)(B) the following:
       [``(C) Planning and environmental assessment costs incurred 
     prior to project approval.--A project funded under 
     subsections (d)(2)(A) through (H) may allow pre-approval 
     planning and environmental compliance costs to be credited 
     toward the non-Federal share in accordance with subsection 
     (f), limited to costs incurred less than 18 months prior to 
     project approval.''; and
       [(7) by striking paragraph (h)(2) and inserting the 
     following:
       [``(2) Waiver of highway program requirements.--A project 
     funded under this section is intended to enhance recreational 
     opportunity and is not considered a highway project. Projects 
     funded under this section are not subject to sections 112, 
     113, 114, 116, 134, 135, 217, or 301 of this title; or 
     section 303 of title 49.''.

     [SEC. 1607. EXEMPTION OF THE INTERSTATE SYSTEM.

       [Subsection 103(c) of title 23, United States Code, is 
     amended by inserting the following after paragraph (4):
       [``(5) Exemption of the interstate system.--The Interstate 
     Highway System, or any portion thereof, as designated 
     pursuant to subsection 103(c) of this title, shall not be 
     considered an historic site of national, State or local 
     significance for purposes of 49 U.S.C. 303, 16 U.S.C. 470f, 
     or 16. U.S.C. 470h-2 by virtue of being listed as a resource 
     on, or eligible for listing in, the National Register of 
     Historic Places. At the discretion of the Secretary, with the 
     advice of the Department of the Interior, individual elements 
     of the Interstate Highway System may receive the protection 
     of section 106 or section 110 of the National Historic 
     Preservation Act (16 U.S.C. 470f and 470h-2).''.

     [SEC. 1608. MODIFICATION TO NHS/STP FOR INVASIVE SPECIES, 
                   WETLANDS, BROWNFIELDS, AND ENVIRONMENTAL 
                   RESTORATION.

       [(a) Modifications to the NHS for Invasive Species, 
     Wetlands, Brownfields, and Environmental Restoration.--
       [(1) Technical corrections.--Section 103 (b)(6) of title 
     23, United States Code, is amended in subparagraph (M)--
       [(A) by striking ``1990'' and inserting ``2000''; and
       [(B) by striking ``101-640'' and inserting ``106-541''.
       [(2) State responsibility.--Section 103 (b)(6) is further 
     amended in subparagraph (M) by inserting ``as determined by 
     the State'' after ``to the maximum extent practicable''.
       [(3) Eligible projects for nhs.--Section 103 (b)(6) is 
     further amended by adding at the end the following new 
     subparagraphs:
       [``(Q) Environmental restoration and pollution abatement to 
     minimize or mitigate impacts of any transportation project 
     funded under this title (including the retrofit or 
     construction of storm water treatment systems to meet State 
     and Federal National Pollutant Discharge Elimination System 
     requirements under Section 402 of the Clean Water Act) to 
     address water pollution or environmental degradation caused 
     or contributed to by transportation facilities. When 
     transportation facilities are undergoing reconstruction, 
     rehabilitation, resurfacing, or restoration, the expenditure 
     of funds under this section for any such environmental 
     restoration or pollution abatement project shall not exceed 
     20 percent of the total cost of the reconstruction, 
     rehabilitation, resurfacing, or restoration project.
       [``(R) In accordance with all applicable Federal law 
     (including applicable Federal regulations), participation in 
     the control of invasive plant species and the establishment 
     of native species related to projects funded under this 
     title, which may include participation in statewide 
     inventories of both invasive and desirable plant species and 
     regional native plant habitat conservation and mitigation, 
     and restoration plans. Contributions to the measures 
     described in the preceding sentence may take place concurrent 
     with or in advance of project construction; except that 
     contributions in advance of project construction may occur 
     only if the efforts are consistent with all applicable 
     requirements of Federal law (including applicable Federal 
     regulations) and State transportation planning processes.
       [``(S) Remediation associated with the construction of a 
     project funded under this title on a brownfield site, as 
     defined in 42 U.S.C. 9601.''.
       [(b) Modifications to the Surface Transportation Program 
     for Invasive Species, Wetlands, Brownfields, and 
     Environmental Restoration.--
       [(1) Technical corrections.--Section 133 (b)(11) of title 
     23, is amended--
       [(A) by striking ``1990'' and inserting ``2000''; and
       [(B) by striking ``101-640'' and inserting ``106-541'';
       [(2) State responsibility.--Section 133 (b)(11) is further 
     amended by inserting ``determined by the State'' after ``to 
     the maximum extent practicable''.
       [(3) Eligible projects for surface transportation 
     program.--
       [(A) Environmental restoration and pollution abatement.--
     Section 133 of title 23, United States Code, is amended by 
     striking (b)(14) and inserting the following:
       [``(14) Environmental restoration and pollution abatement 
     to minimize or mitigate impacts of any transportation project 
     funded under this title (including the retrofit or 
     construction of storm water treatment systems to meet State 
     and Federal National Pollutant Discharge Elimination System 
     requirements under Section 402 of the Clean Water Act) to 
     address water pollution or environmental degradation caused 
     or contributed to by transportation facilities. When 
     transportation facilities are undergoing reconstruction, 
     rehabilitation, resurfacing, or restoration, the expenditure 
     of funds under this section for any such environmental 
     restoration or pollution abatement project shall not exceed 
     20 percent of the total cost of the reconstruction, 
     rehabilitation, resurfacing, or restoration project.''.
       [(B) Invasive species control and brownfields remediation 
     efforts.--Section 133(b) of such title, as amended by this 
     Act, is further amended by adding at the end the following 
     new paragraphs:
       [``(16) In accordance with all applicable Federal law 
     (including regulations), participation in the control of 
     invasive plant species and the establishment of native 
     species related to projects funded under this title, which 
     may include participation in statewide inventories of both 
     invasive and desirable plant species and regional native 
     plant habitat conservation and mitigation, and restoration 
     plans. Contributions to the measures described in the 
     preceding sentence may take place concurrent with or in 
     advance of project construction; except that contributions in 
     advance of project construction may occur only if the efforts 
     are consistent with all applicable requirements of Federal 
     law (including regulations) and State transportation planning 
     processes.
       [``(17) Remediation associated with the construction of a 
     project funded under this title on a brownfield site, as 
     defined in 42 U.S.C. 9601.''.

     [SEC. 1609. STANDARDS.

       [(a) In General.--Section 109(a) of title 23 of the United 
     States Code is amended by--
       [(1) striking ``and'' at the end of paragraph (1);
       [(2) striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       [(3) adding the following paragraph at the end of 
     subsection (a):
       [``(3) consider the preservation, historic, scenic, natural 
     environment, and community values.''.
       [(b) Context Sensitive Design.--Section 109 of such title 
     is amended by striking subsection (p) and inserting the 
     following:
       [``(p) Context Sensitive Design.--
       [``(1) The Secretary shall encourage States to design 
     projects funded under title 23 to--
       [``(A) allow for the preservation of environmental, scenic, 
     community, and/or historic values;
       [``(B) ensure safe use of the facility for both passenger 
     and freight movement;
       [``(C) provide for consideration of the context of the 
     locality;
       [``(D) encourage access for other modes of transportation; 
     and
       [``(E) comply with subsection (a).
       [``(2) Notwithstanding subsections (b) and (c), the 
     Secretary may approve a project for the National Highway 
     System if the project is designed to achieve the criteria of 
     subparagraphs (A) through (E).''.

     [SEC. 1610. USE OF HOV LANES.

       [Section 102 of title 23, United States Code, is amended by 
     striking subsection (a) and inserting the following:
       [``(a) High Occupancy Vehicle (HOV) Passenger 
     Requirements.--
       [``(1) In general.--A State transportation department or 
     other responsible local agencies shall establish the 
     occupancy requirements of vehicles operating in HOV 
     facilities; except that no fewer than 2 occupants per vehicle 
     may be required, unless otherwise provided in paragraph (2).
       [``(2) Exceptions to hov occupancy requirements.--
       [``(A) Motorcycles.--Motorcycles shall not be considered 
     single occupant vehicles and shall be allowed to use HOV 
     facilities, except that upon certification by the responsible 
     agency to the Secretary, the agency may restrict such use by 
     motorcycles if such use would create a safety hazard.
       [``(B) Low emission and energy-efficient vehicles.--
       [``(i) Responsible agencies shall have the option of 
     allowing qualifying low emission and energy-efficient 
     vehicles to use HOV facilities if they do not satisfy the 
     established occupancy requirements.

[[Page 757]]

       [``(ii) Responsible agencies that allow qualifying low 
     emission and energy-efficient vehicles to use HOV facilities 
     shall--

       [``(I) establish a program that addresses how such 
     qualifying vehicles are selected and certified;
       [``(II) establish requirements for labeling qualifying 
     vehicles and procedures for enforcing such vehicles;
       [``(III) continuously monitor, evaluate, and report on 
     performance; and
       [``(IV) establish the policies and procedures that will 
     limit or restrict the use of such vehicles as necessary, to 
     ensure that the performance of individual facilities or the 
     entire system does not become seriously degraded.

       [``(iii) As used in this subparagraph, the term ``low 
     emission and energy-efficient vehicles'' means vehicles that 
     have been certified--

       [``(I) by the Administrator of the Environmental Protection 
     Agency to have a 45-mile-per-gallon or greater fuel economy 
     highway rating; or are defined as an alternative fuel vehicle 
     under section 301(2) of the Energy Policy Act of 1992 (42 
     U.S.C. 13211(2)); and
       [``(II) as meeting Tier II emission level established in 
     regulations prescribed by the Administrator of the 
     Environmental Protection Agency under section 202(i) of the 
     Clean Air Act (42 U.S.C. 7521(i)) for that make and model 
     year vehicle.

       [``(C) Bicycles.--Responsible agencies shall have the 
     option of allowing bicycles on surface street HOV facilities 
     when there is insufficient space within the roadway or public 
     right-of-way to establish and designate a bicycle lane.
       [``(D) Tolling of vehicles.--Responsible agencies may 
     permit vehicles, in addition to those vehicles described in 
     paragraphs (A), (B), and (E) that do not satisfy the 
     established occupancy requirements, to use an HOV facility 
     only if they charge such vehicles a toll. The authority of an 
     agency to impose a toll shall be subject to section 129 of 
     this title. Any agency electing to toll such vehicles shall 
     also--
       [``(i) establish a program that addresses how motorists can 
     enroll and participate;
       [``(ii) develop, manage, and maintain a system that will 
     automatically collect the tolls that vehicles must pay;
       [``(iii) continuously monitor, evaluate, and report on 
     performance;
       [``(iv) establish the policies and procedures for varying 
     the toll that is charged to manage the demand to use the 
     subject facilities and enforcing violations; and
       [``(v) establish procedures that will limit or restrict the 
     use of such vehicles as necessary, to ensure that the 
     performance of individual facilities or the entire system 
     does not become seriously degraded.
       [``(E) Designated public transportation vehicles.--
       [``(i) In this subparagraph, the term ``designated public 
     transportation vehicles'' means vehicles that provide 
     designated public transportation, as defined under section 
     12141 of title 42, and that are owned or operated by a public 
     entity or that are operating under contract to a public 
     entity.
       [``(ii) Responsible agencies may permit designated public 
     transportation vehicles to use HOV facilities if they do not 
     satisfy the established occupancy requirements.
       [``(iii) Any agency that permits designated public 
     transportation vehicles to use HOV facilities if they do not 
     satisfy the established occupancy requirements shall--

       [``(I) establish requirements for clearly and identifiably 
     labeling vehicles operating under contract to the public 
     entity with the name of the public entity on all sides of the 
     vehicle;
       [``(II) establish the policies and procedures to ensure 
     that vehicles operating under contract to the public entity 
     are in compliance with the labeling requirement under 
     subclause (I) of this clause;
       [``(III) continuously monitor, evaluate, and report on 
     performance; and
       [``(IV) establish the policies and procedures that will 
     limit or restrict the use of such vehicles as necessary, to 
     ensure that the performance of individual facilities or the 
     entire system does not become seriously degraded.

       [``(3) HOV facility management, operation, and 
     monitoring.--Agencies that permit any of the exceptions 
     specified in paragraph (a)(2) shall be responsible for the 
     following:
       [``(A) Performance monitoring, evaluation, and reporting.--
     Responsible agencies shall be required to establish, manage, 
     and support a performance monitoring, evaluation, and 
     reporting program if they permit any of the exceptions 
     specified in paragraph (a)(2). This program shall 
     continuously monitor, assess, and report on the impacts that 
     any of these specific types of allowed vehicles may have on 
     the operation of individual HOV facilities and the entire HOV 
     system.
       [``(B) Operation of hov facility or system.--Responsible 
     agencies shall limit or discontinue permitting any of the 
     exceptions specified in paragraph (a)(2), if the presence of 
     any of these specific types of allowed vehicles seriously 
     degrades the operation of individual HOV facilities or the 
     entire HOV system. For purposes of this section, ``seriously 
     degraded'' means that an HOV facility located on a freeway, 
     or similar type of roadway, fails to maintain a minimum 
     average operating speed of at least 45 miles per hour 90 
     percent of the time over a consecutive six-month period 
     during weekday peak travel periods. For HOV facilities on 
     other types of roadways, the minimum average operating speed, 
     performance threshold, and associated time period shall be 
     established based on the conditions unique to each roadway 
     and agreed to by the responsible agencies.''.

     [SEC. 1611. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

       [(a) In General.--Section 217 of title 23, United States 
     Code, is amended--
       [(1) in subsection (a), by inserting ``pedestrian and'' 
     after ``safe'';
       [(2) in subsection (e), by striking ``bicycles'' each time 
     it appears and inserting ``pedestrians or bicyclists'' in 
     each instance;
       [(3) by striking subsection (f) and inserting the 
     following:
       [``(f) Federal Share.--The Federal share of the 
     construction of bicycle transportation facilities and 
     pedestrian walkways and for carrying out nonconstruction 
     projects related to safe pedestrian and bicycle use shall be 
     determined in accordance with section 120(b).'';
       [(4) in subsection (j), by inserting after paragraph (4) 
     the following:
       [``(5) Shared use path.--The term ``shared use path'' means 
     a multi-use trail or other path, physically separated from 
     motorized vehicular traffic by an open space or barrier, 
     either within a highway right-of-way or within an independent 
     right-of-way, and usable for transportation purposes. Shared 
     use paths may be used by pedestrians, bicyclists, skaters, 
     equestrians, and other nonmotorized users.''; and
       [(5) by adding after subsection (j) the following:
       [``(k) User Fees.--At the option of each State, a shared 
     use path funded under this section is not subject to the 
     provisions of 23 U.S.C. 301, provided that the shared use 
     path is not within a highway right-of-way, and the income 
     received from user fees is used for ongoing maintenance and 
     operation of shared use paths within the State.
       [``(l) Bicycle and Pedestrian Safety Grants.--
       [``(1) In general.--The Secretary shall make grants to a 
     national, not-for-profit organization engaged in promoting 
     bicycle and pedestrian safety to--
       [``(A) operate a national bicycle and pedestrian 
     clearinghouse;
       [``(B) develop information and educational programs; and
       [``(C) disseminate techniques and strategies for improving 
     bicycle and pedestrian safety.
       [``(2) Funding.--Funds provided under section 104(p) of 
     this title shall be available to carry out the provisions of 
     this section.
       [``(3) Applicability of title 23.--Funds authorized by this 
     subsection shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23, United States Code, except that the funds shall 
     remain available until expended.''.
       [(b) Set-Aside.--Section 104 of title 23, United States 
     Code, is amended by adding, after subsection (o), as added by 
     this Act, the following:
       [``(p) Bicycle and Pedestrian Safety Grants.--On October 1 
     of each fiscal year for fiscal years 2004 through 2009, the 
     Secretary, after making the deductions authorized by 
     subsections (a) and (f), shall set-aside $500,000 of the 
     remaining funds authorized to be apportioned under subsection 
     (b)(3) for carrying out the Bicycle and Pedestrian Safety 
     Grants under section 217 of this title.''.

     [SEC. 1612. TRANSPORTATION, ENERGY, AND ENVIRONMENT.

       [(a) In General.--As part of the National Climate Change 
     Technology Initiative and the Climate Change Research 
     Initiative, the Secretary shall establish and carry out a 
     multimodal energy and climate change program to study the 
     relationship of transportation, energy, and climate change.
       [(b) Contents.--The program to be carried out under this 
     section shall include, but not be limited to, research 
     designed to--
       [(1) identify, develop and evaluate strategies to improve 
     energy efficiency and reduce greenhouse gas emissions from 
     transportation sources; and
       [(2) identify and evaluate the potential effects of climate 
     changes on the nation's transportation systems, and 
     strategies to address these effects;
       [(c) Project Selection.--Activities to be undertaken in 
     this program will be determined by an internal steering 
     committee established by the Secretary of Transportation. 
     This intermodal committee shall include representatives from 
     the Office of the Secretary and operating administrations 
     within the Department of Transportation as designated by the 
     Secretary.
       [(d) Grants, Cooperative Agreements and Contracts.--The 
     Secretary may carry out this program independently or by 
     making grants to, or entering into contracts, cooperative 
     agreements, and other transactions, with a Federal agency, 
     State agency, local agency, authority, association, nonprofit 
     or for-profit corporation, or institution of higher 
     education.
       [(e) Funding.--
       [(1) Highway account.--

[[Page 758]]

       [(A) Funding.--There is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     to carry out this section $3,600,000 for fiscal year 2004, 
     $2,200,000 for fiscal year 2005, $2,200,000 for fiscal year 
     2006, $2,200,000 for fiscal year 2007, $2,700,000 for fiscal 
     year 2008, and $2,700,000 for fiscal year 2009.
       [(B) Contract authority.--Funds authorized from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     this Section shall be available for obligation in the same 
     manner as if the funds were apportioned under Chapter 1 of 
     Title 23, United States Code, except that the Federal share 
     of the cost of a project or activity carried out using such 
     funds shall not exceed 100 percent and such funds shall 
     remain available until expended.
       [(2) Mass transit account.--
       [(A) Funding.--There is authorized to be appropriated from 
     the Mass Transit Account of the Highway Trust Fund to carry 
     out this section $400,000 for fiscal year 2004, $300,000 for 
     fiscal year 2005, $300,000 for fiscal year 2006, $300,000 for 
     fiscal year 2007, $300,000 for fiscal year 2008, and $300,000 
     for fiscal year 2009.
       [(B) Contract authority.--A grant or contract that is 
     financed with amounts paid under this subparagraph from the 
     Mass Transit Account is a contractual obligation of the 
     United States Government to pay the Government's share of the 
     cost of the project.
       [(3) Airport and airway trust fund.--There is authorized to 
     be appropriated from the Airport and Airway Trust Fund to 
     carry out this section $500,000 for fiscal year 2005, 
     $500,000 for fiscal year 2006, and $500,000 for fiscal year 
     2007.

     [SEC. 1613. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-
                   OF-WAY.

       [Section 111 of Title 23 of the United States Code is 
     hereby amended by adding at the end the following:
       [``(d) Idling Reduction Facilities in Interstate Rights-of-
     Way.--Notwithstanding the prohibition on commercial 
     establishments set forth in subsection (a), any State may 
     permit electrification or other idling reduction facilities 
     and equipment, for use by motor vehicles used for commercial 
     purposes, to be placed in rest and recreation areas, and in 
     safety rest areas, constructed or located on rights-of-way of 
     the Interstate System in such State, and may charge, or 
     permit charges for the use of such facilities. The exclusive 
     purpose of such facilities or technologies shall be to enable 
     operators of such vehicles to turn off their engines while 
     parked and still have heating, air conditioning, electricity, 
     and communication services in the vehicle.''.

     [SEC. 1614. APPROPRIATION FOR TRANSPORTATION PURPOSES OF 
                   LANDS OR INTEREST IN LANDS OWNED BY THE UNITED 
                   STATES.

       [(a) In General.--Section 317 of title 23, United States 
     Code, is amended to read as follows:

     [``Sec. 317. Appropriation for transportation purposes of 
       lands or interest in lands owned by the United States

       [``(a) In General.--If the Secretary determines that any 
     part of the lands or interests in land owned by the United 
     States are reasonably necessary for any project administered 
     under this title or as a source for materials for such a 
     project, the Secretary is authorized to file with the 
     Secretary of the Department supervising the administration of 
     such lands or interests in lands a description and a map 
     showing the portion of such lands or interests in lands which 
     it is necessary to appropriate. The Secretary of such 
     Department shall have a period of up to four months to review 
     the proposed appropriation and to designate reasonable 
     mitigation measures necessary to protect the adjacent federal 
     lands from adverse environmental impacts, or to certify that 
     the proposed appropriation is contrary to the purposes for 
     which such lands or materials have been reserved. If no such 
     certification is received, the Secretary may appropriate and 
     transfer such lands or interests in lands to the State 
     transportation department, or its nominee, subject to such 
     reasonable mitigation measures designated above. If at any 
     time the need for such lands or materials for transportation 
     purposes shall no longer exist, notice of the fact shall be 
     given by the State transportation department to the Secretary 
     and the Secretary of the Department from which they had been 
     appropriated. Such lands or materials may, at the discretion 
     of the Secretary of the Department from which they had been 
     appropriated or its designee, revert to the United States, 
     under the control of such Secretary, or its designee. Unless 
     otherwise instructed by the Secretary, prior to any such 
     reversion the State transportation department shall restore 
     the land to its former condition.
       [``(b) Prior Restrictions or Encumbrances.--Notwithstanding 
     any other provision of law, the acquisition and use of land 
     under this section may proceed irrespective of any prior deed 
     restrictions or other encumbrances that were imposed as a 
     condition on the receipt of Federal funds.''.
       [(b) Conforming Amendment.--The analysis for chapter 3 of 
     such title is revised by amending the item relating to 
     section 317 to read as follows:

[``317.  Appropriation for transportation purposes of lands or interest 
              in lands owned by the United States.''.

     [SEC. 1615. TOLL PROGRAMS.

       [(a) Interstate System Reconstruction and Rehabilitation 
     Pilot Program.--Sec. 1216(b) of the Transportation Equity Act 
     for the 21st Century is amended--
       [(1) in paragraph (1), by striking ``that could not 
     otherwise be adequately maintained or functionally improved 
     without the collection of tolls'';
       [(2) in paragraph (3), by striking subparagraph (C) and 
     inserting the following:
       [``(C) An analysis demonstrating that financing the 
     reconstruction or rehabilitation of the facility with the 
     collection of tolls under this pilot program is the most 
     efficient, economical, or expeditious way to advance the 
     project.''; and
       [(3) in paragraph (4),
       [(A) by striking subparagraph (A) and inserting the 
     following:
       [``(A) the State's analysis showing that financing the 
     reconstruction or rehabilitation of this facility with the 
     collection of tolls under this program is the most efficient, 
     economical, or expeditious way to advance the project is 
     reasonable;'';
       [(B) by striking subparagraph (B) and inserting the 
     following:
       [``(B) the facility needs reconstruction or 
     rehabilitation;'';
       [(C) by striking subparagraph (C); and
       [(D) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively.
       [(b) Variable Toll Pricing Program.--
       [(1) Establishment.--The Secretary, notwithstanding 
     sections 129 and 301 of title 23, United States Code, may 
     permit a State or public authority to toll any highway, 
     bridge, or tunnel, including facilities on the Interstate 
     System, to manage existing high levels of congestion or 
     reduce emissions in a nonattainment area or maintenance area.
       [(2) Basic program.--The following conditions apply to any 
     variable toll pricing program established under this section:
       [(A) Limitation on use of revenues.--All toll revenues 
     received from the operation of the toll facility shall be 
     used first for debt service, reasonable return on investment 
     of any private financing, and the costs necessary for proper 
     operation and maintenance of the toll facility (including 
     reconstruction, resurfacing, restoration, and 
     rehabilitation). If the State or public authority certifies 
     annually that the tolled facility is being adequately 
     maintained, then the State or public authority may use any 
     excess toll revenues for projects eligible for Federal 
     assistance under title 23, United States Code.
       [(B) Agreement.--Before the Secretary may permit tolling 
     under this subsection, and for each facility that may be 
     tolled, the Secretary and the State or public authority must 
     enter into an agreement providing for the conditions in 
     subparagraphs (A) and (C) of this paragraph. The agreement 
     shall terminate upon the decision of the State or public 
     authority to discontinue its variable tolling program for 
     that facility. If there is any debt outstanding on the 
     facility at the time the decision is made to discontinue the 
     program, the facility may continue to be tolled in accordance 
     with the terms of the agreement until the debt is retired.
       [(C) Requirements.--
       [(i) Variable price requirement.--The Secretary shall 
     require, for each facility that may be tolled under this 
     subsection, that the tolls vary in price according to time of 
     day, as appropriate, to manage congestion or to improve air 
     quality.
       [(ii) HOV passenger requirements.--In addition to the 
     exceptions to the high occupancy vehicle passenger 
     requirements established under section 102(a)(2) of title 23, 
     United States Code, a State may permit vehicles with fewer 
     than 2 occupants to operate in high occupancy vehicle lanes 
     as part of a variable toll pricing program established under 
     this subsection.
       [(D) Limitation on federal share.--The Federal share 
     payable for projects on the tolled facility, including 
     projects to install toll collection facilities, shall be a 
     percentage determined by the State but shall not exceed 80 
     percent.
       [(3) Eligibility.--To be eligible to participate in the 
     program, a State or public authority shall provide to the 
     Secretary--
       [(A) a description of the congestion or air quality 
     problems sought to be addressed under this program;
       [(B) an identification of the goals sought to be achieved 
     and the performance measures that would be used to gauge the 
     success made toward reaching those goals; and
       [(C) such other information as the Secretary may require.
       [(4) Definitions.--
       [(A) Maintenance area.--The term ``maintenance area'' has 
     the same meaning given the term under section 101 of title 
     23, United States Code.
       [(B) Nonattainment area.--The term ``nonattainment area'' 
     has the same meaning given the term under section 7501 of 
     title 42, United States Code.
       [(c) Repeal.--Section 1012(b) of the Intermodal Surface 
     Transportation Efficiency Act, as amended by section 1216(a) 
     of the Transportation Equity Act for the 21st Century, is 
     repealed. Notwithstanding the repeal

[[Page 759]]

     of section 1012(b), the Secretary shall monitor and allow any 
     value pricing program established under a cooperative 
     agreement in effect on the date of enactment of this Act to 
     continue.

     [SEC. 1616. OZONE STANDARDS, PARTICULATE MATTER STANDARDS, 
                   AND REGIONAL HAZE PROGRAM.

       [(a) Title.--The heading of title VI of the Transportation 
     Equity Act for the 21st Century (Public Law 105-178; 112 
     Stat. 463; June 9, 1998) is amended to read as follows:

    [``TITLE VI--OZONE STANDARDS, PARTICULATE MATTER STANDARDS, AND 
                        REGIONAL HAZE PROGRAM''

       [(b) Findings and Purpose.--Section 6101 of such Act is 
     amended to read as follows:

     [``Sec. 6101. Findings and Purpose

       [``(a) The Congress finds that--
       [``(1) the fine particle (PM-2.5) standards promulgated by 
     the Administrator of the Environmental Protection Agency 
     (referred to in this title as ``Administrator'') in July 1997 
     were established to protect the public health and welfare;
       [``(2) there is a continuing need for PM-2.5 air quality 
     monitoring data;
       [``(3) with three years of PM-2.5 air quality monitoring 
     data for all areas expected to be available by 2003 it is 
     important to move forward to designate areas as attainment or 
     nonattainment and proceed with implementation of these 
     standards;
       [``(4) it will be beneficial to States to develop and 
     submit implementation plans for the PM-2.5 standards and the 
     regional haze program at the same time; and
       [``(5) Western States that participated in the Grand Canyon 
     Visibility Transport Commission should be permitted to submit 
     plans in 2003 to implement recommendations set forth in the 
     Commission's report.
       [``(b) The purposes of this title are--
       [``(1) to ensure the availability of PM-2.5 air quality 
     monitoring data;
       [``(2) to establish a deadline for the designation of areas 
     for the PM-2.5 standards; and
       [``(3) to ensure that States are able to develop PM-2.5 and 
     regional haze implementation plans at the same time for all 
     areas within a State, while continuing to allow nine Western 
     States the option of submitting regional haze plans in 2003 
     to implement regional haze requirements based on the 1996 
     recommendations of the Grand Canyon Visibility Transport 
     Commission.''.
       [(c) Particulate Matter and Regional Haze.--
       [(1) The heading of section 6102 of the Transportation 
     Equity Act for the 21st Century is amended to read as 
     follows:

     [``Sec. 6102. Particulate matter and regional haze programs''

       [(2) Section 6102(c) of such Act is amended to read as 
     follows:
       [``(c)(1) The Governors shall be required to submit 
     designations referred to in section 107(d)(1) of the Clean 
     Air Act (42 U.S.C. 7407(d)(1)) for each area following 
     promulgation of the July 1997 PM-2.5 national ambient air 
     quality standard by September 30, 2003, based on air quality 
     monitoring data collected in accordance with any applicable 
     Federal reference methods for the relevant areas. Only data 
     from the monitoring network designated in subsection (a) and 
     other Federal reference method PM-2.5 monitors shall be 
     considered for such designations. Nothing in the previous 
     sentence shall be construed as affecting the Governor's 
     authority to designate an area initially as nonattainment, 
     and the Administrator's authority to promulgate the 
     designation of an area as nonattainment, under section 
     107(d)(1) of the Clean Air Act, based on its contribution to 
     ambient air quality in a nearby nonattainment area.
       [``(2)(A) Each State shall submit, for the entire State, 
     the State implementation plan revisions to meet the 
     requirements promulgated by the Administrator under section 
     169B(e)(1) of the Clean Air Act (42 U.S.C. 7492(e)(1)) 
     (hereinafter in this paragraph referred to as `the regional 
     haze requirements') by 3 years after the date the 
     Administrator promulgates the designations referred to in 
     subsection (d) for such State.
       [``(B) The provisions of subparagraph (A) of this paragraph 
     shall not preclude the implementation of the agreements and 
     recommendations set forth in the Grand Canyon Visibility 
     Transport Commission Report dated June 1996. These provisions 
     shall not preclude the submission of State implementation 
     plan revisions by the States of Arizona, California, 
     Colorado, Idaho, Nevada, New Mexico, Oregon, Utah, or Wyoming 
     by December 31, 2003, for implementation of the regional haze 
     requirements as they apply to such States. Each of the 
     aforementioned States submitting such plan revisions shall 
     also submit statewide implementation plan revisions, as 
     required under subparagraph (A), to address, as necessary, 
     any additional mandatory Class I Federal areas not addressed 
     by the revisions submitted pursuant to the preceding 
     sentence.''.
       [(3) Section 169B(e)(2) of the Clean Air Act (42 U.S.C. 
     7492(e)(2)) is repealed.
       [(4) Section 6102(d) of the Transportation Equity Act for 
     the 21st Century is amended to read as follows:
       [``(d) Notwithstanding any other provision of law, the 
     Administrator shall promulgate the designations referred to 
     in subsection (d) of section 107 of the Clean Air Act for 
     each area of each State for the July 1997 PM-2.5 national 
     ambient air quality standards by December 31, 2004.''.
       [(d) Conforming Amendment.--Section 1(b) of the 
     Transportation Equity Act for the 21st Century is amended in 
     the Table of Contents--
       [(1) in the heading for title VI, by striking ``OZONE AND 
     PARTICULATE MATTER STANDARDS'' and inserting ``OZONE 
     STANDARDS, PARTICULATE MATTER STANDARDS, AND REGIONAL HAZE 
     PROGRAM''; and
       [(2) in the item relating to section 6102, by striking 
     ``monitoring program'' and inserting ``and regional haze 
     programs''.

     [SEC. 1617. INDEMNIFICATION ON CERTAIN RAILBANKED PROJECTS.

       [Where, pursuant to a final judgment, a Federal court finds 
     the United States liable by operation of section 8(d) the 
     National Trails System Act (enacted by section 208 of Pub. L. 
     98-11, 97 Stat. 48) (16 U.S.C. 1247(d)), for a taking of 
     property under the Fifth Amendment to the United States 
     Constitution, a State that has received funds, after the date 
     of enactment of this Act, under a Federal-aid highway program 
     established under title 23, United States Code, and that has 
     used a portion of those funds to acquire, develop, maintain 
     or improve a railroad right-of-way that is the subject of the 
     judgment, shall indemnify the United States up to the lesser 
     amount of the judgment awarded (including attorney fees) or 
     the Federal-aid highway program funds received in connection 
     with that railroad right-of-way.

     [Subtitle G--Program Efficiencies and Improvements--Operations

     [SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.

       [(a) Definitions.--Section 101(a) of title 23, United 
     States Code, is amended--
       [(1) in paragraph (3)--
       [(A) by inserting ``and intermodal operations to enhance 
     security'' after ``program'' in the first sentence; and
       [(B) in subparagraph (G), by striking ``traffic control 
     systems,'';
       [(2) in paragraph (18), as redesignated by this Act, by 
     inserting ``costs incurred by transportation agencies 
     attributed to operation of technology used to monitor 
     critical transportation infrastructure for security 
     purposes,'' after ``rent,'' and by inserting ``transportation 
     systems management and operations and'' after ``with'';
       [(3) in paragraph (19)(A)(i), as redesignated by this Act, 
     by inserting--
       [(A) ``transportation system management and operations, 
     including,'' after ``for'';
       [(B) ``and transportation security'' after ``installation 
     of traffic''; and
       [(C) ``equipment and programs for transportation response 
     to manmade and natural disasters,'' after ``incident 
     management programs,'';
       [(4) by redesignating paragraphs (39) and (40), as 
     redesignated by this Act, as paragraphs (40) and (41), 
     respectively; and
       [(5) by inserting new paragraph (39) after paragraph (38), 
     as follows:
       [``(39) Transportation systems management and operations.--
     The term `transportation systems management and operations' 
     means an integrated program to optimize the performance of 
     existing infrastructure through the implementation of multi- 
     and intermodal, cross-jurisdictional systems, services, and 
     projects designed to preserve capacity and improve security, 
     safety, and reliability of Federal-aid highways. 
     Transportation systems management and operations includes 
     regional operations collaboration and coordination activities 
     between transportation and public safety agencies, and 
     improvements such as traffic detection and surveillance, 
     arterial management, freeway management, demand management, 
     work zone management, emergency management, electronic toll 
     collection, automated enforcement, traffic incident 
     management, roadway weather management, traveler information 
     services, commercial vehicle operations, traffic control, 
     freight management, and coordination of highway, rail, 
     transit, bicycle, and pedestrian operations.''.
       [(b) Congestion Mitigation and Air Quality Improvement 
     Program Eligibility.--Section 149(b)(5) of such title is 
     amended by inserting ``improve transportation systems 
     management and operations,'' after ``intersections,''.
       [(c) Surface Transportation Program Eligibility.--Section 
     133(b) of such title, as amended by section 1608 of this Act, 
     is further amended by adding at the end the following:
       [``(17) Regional transportation operations collaboration 
     and coordination activities that are associated with regional 
     improvements, such as traffic incident management, technology 
     deployment, emergency management and response, traveler 
     information, and regional congestion relief.''.
       [(d) Transportation Systems Management and Operations.--
     Chapter 1 of such title, as amended by this Act, is further 
     amended by inserting the following new section after section 
     164:

[[Page 760]]



     [``Sec. 165. Transportation systems management and operations

       [``(a) Authority.--To ensure efficient and effective 
     transportation systems management and operations on Federal-
     aid highways, through collaboration, coordination, and real-
     time information sharing, at a regional level, between 
     transportation system managers and operators, public safety 
     officials, and the general public, and to manage and operate 
     Federal-aid highways in a coordinated manner to preserve the 
     capacity and maximize the performance of existing highway and 
     transit facilities for travelers and carriers, the Secretary 
     of Transportation may--
       [``(1) encourage transportation system managers, operators, 
     public safety officials, and transportation planners within 
     an urbanized area, who are actively engaged in and 
     responsible for conducting the day-to-day management, 
     operations, public safety, and planning of transportation 
     facilities and services, to collaborate and coordinate on a 
     regional level in a continuous and sustained manner, for 
     improved transportation systems management and operations, 
     including, at a minimum--
       [``(A) developing a regional concept of operations that 
     defines a regional strategy shared by all transportation and 
     public safety participants for how the regions' systems 
     should be managed, operated, and measured;
       [``(B) sharing of information among operators, service 
     providers, public safety officials, and the general public; 
     and
       [``(C) guiding in a regionally-coordinated manner, the 
     implementation of regional transportation system management 
     and operations initiatives including emergency evacuation and 
     response, traffic incident management, technology deployment, 
     and traveler information systems delivery, in a manner 
     consistent with and integrated into the ongoing Metropolitan 
     and Statewide transportation planning processes and regional 
     intelligent transportation system architecture, if required; 
     and
       [``(2) encourage States to establish a system of basic 
     real-time monitoring capability for the surface 
     transportation system and provide the capability and means to 
     share that data among agencies (highways, transit, public 
     safety), jurisdictions (including states, cities, counties, 
     metropolitan planning organizations), private-sector 
     entities; and the traveling public.
       [``(b) Execution.--To support the successful execution of 
     transportation systems management and operations activities, 
     the Secretary may undertake the following:
       [``(1) Assist and cooperate with other Federal departments 
     and agencies, State and local governments, metropolitan 
     planning organizations, private industry, and other 
     interested parties to improve regional collaboration and 
     real-time information sharing between transportation system 
     managers and operators, public safety officials, emergency 
     managers, and general public to increase security, safety, 
     and reliability of our Federal-aid highways.
       [``(2) Issue, if necessary, new guidance or regulations for 
     the procurement of transportation system management and 
     operations facilities, equipment, and services, including but 
     not limited to equipment procured in preparation for manmade 
     or natural disasters and emergencies, system hardware, 
     software, and software integration services. In developing 
     such guidelines, the Secretary may consider innovative 
     procurement methods that support the timely and streamlined 
     execution of transportation system management and operations 
     programs and projects.
       [``(3) Approve for Federal financial assistance from funds 
     apportioned under section 104(b)(3) of this title support for 
     regional operations collaboration and coordination activities 
     that are associated with regional improvements, such as 
     traffic incident management, technology deployment, emergency 
     management and response, traveler information, and congestion 
     relief.''.
       [(e) Conforming Amendment.--The analysis for chapter 1 of 
     such title is amended by inserting after the item relating to 
     section 164 the following:

[``165. Transportation systems management and operations.''.

     [SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

       [(a) Goals and Purposes.--
       [(1) Goals.--The goals of the real-time system management 
     information program are to provide the nationwide capability 
     to monitor, in real-time, the traffic and travel conditions 
     of our nation's major highways and to widely share that 
     information to improve the security of the surface 
     transportation system, address congestion problems, support 
     improved response to weather events, and facilitate national 
     and regional traveler information.
       [(2) Purposes.--The purposes of the real-time system 
     management information program are to--
       [(A) establish a nationwide system of basic real-time 
     information for managing and operating our surface 
     transportation system;
       [(B) identify longer range real-time highway and transit 
     monitoring needs and develop plans and strategies for meeting 
     those needs; and
       [(C) provide the capability and means to share that data 
     with state and local governments, and the traveling public.
       [(b) Data Exchange Formats.--Within one year of enactment 
     of this Act, the Secretary shall establish data exchange 
     formats to ensure that the data provided by highway and 
     transit monitoring systems, including statewide incident 
     reporting systems can readily be exchanged across 
     jurisdictional boundaries, facilitating nationwide 
     availability of information.
       [(c) Statewide Incident Reporting System.--Within 2 years 
     of enactment of this legislation, each State shall establish 
     a statewide incident reporting system.
       [(d) Regional Intelligent Transportation System 
     Architecture.--
       [(1) As State and local governments develop or update their 
     regional ITS architectures, as specified in section 940.9 of 
     title 23, Code of Federal Regulations (Regional ITS 
     Architecture), they shall explicitly address their real-time 
     highway and transit information needs and the systems needed 
     to meet those needs. This specific incorporation of 
     information needs should address coverage, monitoring 
     systems, data fusion and archiving, and methods of exchanging 
     or sharing this information.
       [(2) States are encouraged to incorporate the data exchange 
     formats developed by the Secretary to ensure that the data 
     provided by highway and transit monitoring systems can 
     readily be exchanged across state and local governments, and 
     with the traveling public.
       [(e) Eligilibity.--
       [(1) Use of surface transportation program funds.--Subject 
     to project approval by the Secretary, a State may obligate 
     funds apportioned to it under section 104(b)(3) of title 23, 
     United States Code, for activities related to the planning 
     and deployment of real-time monitoring elements.
       [(2) Use of national highway system funds.--Subject to 
     project approval by the Secretary, a State may obligate funds 
     apportioned to it under section 104(b)(1) of title 23, United 
     States Code, for activities related to the planning and 
     deployment of real-time monitoring elements.
       [(3) Use of state planning and research funds.--Subject to 
     project approval by the Secretary, a State may obligate funds 
     available under section 104(i) of title 23, United States 
     Code, as amended by section 1503 of this Act, for activities 
     related to the planning of real-time monitoring elements.
       [(f) Definition.--In this section, the term ``statewide 
     incident reporting system'' means a statewide system for 
     facilitating the real-time electronic reporting of incidents 
     to a central location for use in monitoring the event, 
     providing accurate traveler information, and responding to 
     the incident as appropriate.

     [SEC. 1703. INTELLIGENT TRANSPORTATION SYSTEMS PERFORMANCE 
                   INCENTIVE PROGRAM.

       [(a) In General.--The Secretary shall establish a 
     comprehensive incentive program to accelerate the integration 
     and interoperability of intelligent transportation systems in 
     order to improve the performance of the surface 
     transportation system in metropolitan and rural areas.
       [(b) Definitions.--
       [(1) Intelligent transportation systems.--The term 
     ``intelligent transportation systems'' has the meaning given 
     the term under section 5507 of this Act.
       [(2) National highway system.--The term ``National Highway 
     System'' means the Federal-aid highway system described in 
     section 103(b) of title 23, United States Code.
       [(3) Region.--The term ``region'' means any geographic area 
     that identifies the boundaries of the regional Intelligent 
     Transportation Systems architecture and is defined by the 
     needs of the participating agencies and their stakeholders 
     for the purposes of improving surface transportation 
     operations. A region may include a metropolitan planning 
     area, a corridor, a State, or multiple states.
       [(c) Goal.--The goal of the intelligent transportation 
     systems performance incentive program is to reduce traffic 
     congestion, improve transportation system reliability, 
     provide better customer service to users of the highway 
     system, and improve safety and security by providing 
     financial incentives to transportation agencies to invest in 
     proactively monitoring and managing the performance of the 
     transportation system.
       [(d) Purpose.--The purpose of the intelligent 
     transportation systems performance incentive program is to 
     support the deployment and integration of intelligent 
     transportation systems based on the performance of these 
     systems in improving the management and operation of their 
     surface transportation systems.
       [(e) Regulations.--
       [(1) Issuance.--The Secretary of Transportation shall issue 
     regulations establishing a funding formula for the 
     distribution of funds under this section.
       [(2) Basis for funding formula.--The funding formula shall 
     be based on criteria that reflect each State's--
       [(A) reductions in delay due to incidents;
       [(B) improvements in the operation and safety of signalized 
     intersections;
       [(C) reductions in delay and improvements in safety of work 
     zones on the National Highway System;
       [(D) improvements in the efficiency and reliability of 
     transit services;

[[Page 761]]

       [(E) overall improvement in integrated regional 
     transportation operations;
       [(F) improvements in the quality and availability of 
     traveler information;
       [(G) improved crash notification; and
       [(H) improvements in the safety and productivity of 
     commercial vehicle operations on the National Highway System.
       [(3) Effective date.--The funding formula shall take effect 
     in the fiscal year established by the Secretary in the 
     regulations.
       [(4) Apportionment phase-in.--The funding formula shall 
     provide for the apportionment of funds in the following 
     manner:
       [(A) First fiscal year.--In the first fiscal year that the 
     funding formula is in effect, 50 percent of the sums 
     authorized to be appropriated for expenditure on the 
     intelligent transportation systems performance incentive 
     program for that fiscal year shall be apportioned according 
     to the funding formula developed under this subsection and 50 
     percent of the amount shall be apportioned in accordance with 
     the formula set forth in section 104(b)(1)(A)(i) through (iv) 
     of title 23, United States Code.
       [(B) Second fiscal year.--In the second fiscal year the 
     funding formula is in effect, 75 percent of the sums 
     authorized to be appropriated for expenditure on the 
     intelligent transportation systems performance incentive 
     program for that fiscal year shall be apportioned according 
     to the funding formula developed under this subsection and 25 
     percent of the amount shall be apportioned in accordance with 
     the formula set forth in section 104(b)(1)(A)(i) through (iv) 
     of title 23, United States Code.
       [(C) Third and subsequent fiscal years.--In the third and 
     subsequent fiscal years, the sums authorized to be 
     appropriated for expenditure on the intelligent 
     transportation systems performance incentive program shall be 
     apportioned according to the funding formula developed under 
     this subsection.
       [(f) Funding.--
       [(1) Applicability of title 23, united states code.--Funds 
     authorized to be appropriated under section 1101(a)(13) of 
     this Act shall be available for obligation in the same manner 
     and to the same extent as if such funds were apportioned 
     under chapter 1 of title 23, United States Code, except that 
     such funds shall remain available until expended.
       [(2) Federal share.--The Federal share payable under 
     section 120(b) of title 23, United States Code, shall apply 
     to any project carried out under this section.
       [(g) Apportionments.--The Secretary shall apportion the 
     sums authorized to be appropriated for expenditure on the 
     intelligent transportation systems performance incentive 
     program among the States in accordance with the formula set 
     forth in section 104(b)(1)(A)(i) through (iv) of title 23, 
     United States Code, until the fiscal year established by the 
     regulation under subsection (e)(3).
       [(h) Use of Funds.--Amounts apportioned under this section 
     shall be used for projects involving planning, deployment, 
     integration, and operation of intelligent transportation 
     systems, or any other project or activity designed to further 
     improve system operations. Funds apportioned to each State 
     under this section should be made available for projects in 
     metropolitan planning areas, corridors, and other regions as 
     appropriate to improve operations.

     [SEC. 1704. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND 
                   NETWORKS DEPLOYMENT.

       [(a) In General.--The Secretary shall carry out a 
     Commercial Vehicle Information Systems and Networks program 
     to--
       [(1) improve the safety and productivity of commercial 
     vehicles and drivers; and
       [(2) reduce costs associated with commercial vehicle 
     operations and Federal and State commercial vehicle 
     regulatory requirements.
       [(b) Purpose.--The program shall advance the technological 
     capability and promote the deployment of intelligent 
     transportation system applications for commercial vehicle 
     operations, including commercial vehicle, commercial driver, 
     and carrier-specific information systems and networks.
       [(c) Core Deployment Grants.--
       [(1) In general.--The Secretary shall make grants to 
     eligible States for the core deployment of Commercial Vehicle 
     Information Systems and Networks.
       [(2) Eligibility.--To be eligible for a core deployment 
     grant under this section, a State--
       [(A) shall have a Commercial Vehicle Information Systems 
     and Networks program plan and a top level system design 
     approved by the Secretary;
       [(B) shall certify to the Secretary that its Commercial 
     Vehicle Information Systems and Networks deployment 
     activities, including hardware procurement, software and 
     system development, and infrastructure modifications, are 
     consistent with the national intelligent transportation 
     systems and Commercial Vehicle Information Systems and 
     Networks architectures and available standards, and promote 
     interoperability and efficiency to the extent practicable; 
     and
       [(C) shall agree to execute interoperability tests 
     developed by the Federal Motor Carrier Safety Administration 
     to verify that its systems conform with the national 
     intelligent transportation systems architecture, applicable 
     standards, and protocols for Commercial Vehicle Information 
     Systems and Networks.
       [(3) Amount of grants.--The maximum aggregate amount a 
     State may receive under this section for the core deployment 
     of Commercial Vehicle Information Systems and Networks may 
     not exceed $2,500,000 million, including funds received under 
     sections 4001(e) and 5001(a)(5) and (6) of the Transportation 
     Equity Act for the 21st Century for the core deployment of 
     Commercial Vehicle Information Systems and Networks.
       [(4) Use of funds.--Funds from a grant under this 
     subsection may only be used for the core deployment of 
     Commercial Vehicle Information Systems and Networks. Eligible 
     States that have either completed the core deployment of 
     Commercial Vehicle Information Systems and Networks or 
     complete such deployment before core deployment grant funds 
     are expended, may use the remaining core deployment grant 
     funds for the expanded deployment of Commercial Vehicle 
     Information Systems and Networks in their State.
       [(d) Expanded Deployment Grants.--
       [(1) In general.--For each fiscal year, from the funds 
     remaining after the Secretary has made core deployment grants 
     under subsection (c) of this section, the Secretary may make 
     grants to each eligible State, upon request, for the expanded 
     deployment of Commercial Vehicle Information Systems and 
     Networks.
       [(2) Eligibility.--Each State that has completed the core 
     deployment of Commercial Vehicle Information Systems and 
     Networks is eligible for an expanded deployment grant.
       [(3) Amount of grants.--Each fiscal year, the Secretary may 
     distribute funds available for expanded deployment grants 
     equally among the eligible States, but not to exceed $1 
     million per State.
       [(4) Use of funds.--A State may use funds from a grant 
     under this subsection only for the expanded deployment of 
     Commercial Vehicle Information Systems and Networks.
       [(e) Federal Share.--The Federal share of the cost of a 
     project payable from funds made available to carry out this 
     section shall not exceed 50 percent. The total Federal share 
     of the cost of a project payable from all eligible sources 
     shall not exceed 80 percent.
       [(f) Applicability of Title 23, United States Code.--Funds 
     authorized to be appropriated under section 1101(a)(15) of 
     this Act shall be available for obligation in the same manner 
     and to the same extent as if such funds were apportioned 
     under chapter 1 of title 23, United States Code, except that 
     such funds shall remain available until expended.
       [(g) Definitions.--In this section, the following 
     definitions apply:
       [(1) Commercial vehicle information systems and networks.--
     The term ``Commercial Vehicle Information Systems and 
     Networks'' means the information systems and communications 
     networks that provide the capability to--
       [(A) improve the safety of commercial vehicle operations;
       [(B) increase the efficiency of regulatory inspection 
     processes to reduce administrative burdens by advancing 
     technology to facilitate inspections and increase the 
     effectiveness of enforcement efforts;
       [(C) advance electronic processing of registration 
     information, driver licensing information, fuel tax 
     information, inspection and crash data, and other safety 
     information;
       [(D) enhance the safe passage of commercial vehicles across 
     the United States and across international borders; and
       [(E) promote the communication of information among the 
     States and encourage multistate cooperation and corridor 
     development.
       [(2) Commercial vehicle operations.--The term ``commercial 
     vehicle operations''--
       [(A) means motor carrier operations and motor vehicle 
     regulatory activities associated with the commercial movement 
     of goods, including hazardous materials, and passengers; and
       [(B) with respect to the public sector, includes the 
     issuance of operating credentials, the administration of 
     motor vehicle and fuel taxes, and roadside safety and border 
     crossing inspection and regulatory compliance operations.
       [(3) Core deployment.--The term ``core deployment'' means 
     the deployment of systems in a State necessary to provide the 
     State with the following capabilities:
       [(A) Safety information exchange to--
       [(i) electronically collect and transmit commercial vehicle 
     and driver inspection data at a majority of inspection sites;
       [(ii) connect to the Safety and Fitness Electronic Records 
     (SAFER) system for access to interstate carrier and 
     commercial vehicle data, summaries of past safety 
     performance, and commercial vehicle credentials information; 
     and
       [(iii) exchange carrier data and commercial vehicle safety 
     and credentials information within the State and connect to 
     Safety and Fitness Electronic Records (SAFER) for access to 
     interstate carrier and commercial vehicle data.
       [(B) Interstate credentials administration to--
       [(i) perform end-to-end processing, including carrier 
     application, jurisdiction application processing, and 
     credential issuance, of

[[Page 762]]

     at least the International Registration Plan (IRP) and 
     International Fuel Tax Agreement (IFTA) credentials and 
     extend this processing to other credentials, including 
     intrastate, titling, oversize/overweight, carrier 
     registration, and hazardous materials;
       [(ii) connect to the International Registration Plan (IRP) 
     and International Fuel Tax Agreement (IFTA) clearinghouses; 
     and
       [(iii) have at least 10 percent of the transaction volume 
     handled electronically and have the capability to add more 
     carriers and to extend to branch offices where applicable.
       [(C) Roadside electronic screening to electronically screen 
     transponder-equipped commercial vehicles at a minimum of one 
     fixed or mobile inspection sites and to replicate this 
     screening at other sites.
       [(4) Expanded deployment.--The term ``expanded deployment'' 
     means the deployment of systems in a State that exceed the 
     requirements of an core deployment of Commercial Vehicle 
     Information Systems and Networks, improve safety and the 
     productivity of commercial vehicle operations, and enhance 
     transportation security.

    [Subtitle H--Program Efficiencies and Improvements--Federal-Aid 
                              Stewardship

     [SEC. 1801. SURFACE TRANSPORTATION SYSTEM PERFORMANCE PILOT 
                   PROGRAM.

       [(a) Establishment.--
       [(1) In general.--The Secretary shall establish and 
     implement a Surface Transportation System Performance Pilot 
     Program. Subject to this section, a State may assume some or 
     all, as the Secretary and State may agree, of the Secretary's 
     responsibilities under title 23, United States Code, or 
     assume all or some, as they may agree, of the Secretary's 
     responsibilities under any Federal law, for projects 
     constructed with Federal funds under this pilot program.
       [(2) Obligation of funds.--States participating in this 
     pilot program may obligate funds under sections 104(b)(1), 
     104(b)(3), 104(b)(4), 104(b)(5), 105, and 144(e) of title 23, 
     United States Code, for any purpose for which Federal funds 
     may be obligated by a State under title 23. However, the 
     State shall reserve 10 percent of the funds apportioned under 
     section 104(b)(3) in each fiscal year for transportation 
     enhancement activities as specified in section 133(d)(1), as 
     amended by this Act.
       [(3) Purpose.--The purpose of this performance pilot 
     program is to demonstrate the benefits of performance-based 
     management and to determine how such an approach can be best 
     incorporated into an effective Federally-assisted, State 
     administered Federal-aid highway program. The Secretary shall 
     work closely with potential pilot States to determine ways to 
     build into program-level oversight performance measures that 
     reflect both State and national interests and to apply them 
     with specific measurement of program effectiveness.
       [(b) State Participation.--
       [(1) Number of participating states.--The Secretary may 
     permit up to five States to participate in the performance 
     pilot program established under subsection (a).
       [(2) Application.--To participate in the performance pilot 
     program, a State shall submit an application to the Secretary 
     that contains, at a minimum, the following:
       [(A) A description of the State's long-term and short-term 
     transportation goals.
       [(B) A description of how the State will address any areas 
     of national strategic importance, as may be determined by the 
     Secretary, in reaching its goals. The areas of national 
     strategic importance must include the following: national 
     security, interstate commerce, mobility, safety, and 
     environmental stewardship.
       [(C) A description of the performance measures under which 
     the State's progress and success toward reaching its goals 
     would be measured.
       [(D) A description of how funding will be distributed 
     equitably across the State, including to urbanized areas with 
     populations in excess of 200,000. This would include 
     addressing how local units of government would be consulted 
     in the process of program development and implementation.
       [(E) Evidence of the State's notice and solicitation of 
     public comment and copies of comments received from such 
     solicitation.
       [(F) Such other information as the Secretary may require.
       [(3) Public notice.--Each State that submits an application 
     under this subsection, shall give public notice of its intent 
     to participate in the pilot program at least 20 days prior to 
     submitting its application to the Secretary. The State shall 
     provide notice and solicit public comment by publishing the 
     entire application in accordance with the State's public 
     notice law.
       [(4) Selection criteria.--The Secretary may approve the 
     application of a State under this section only if the 
     application demonstrates how the State plans to address the 
     areas of national strategic importance as identified in 
     subsection (b)(2)(B). The Secretary will prioritize the 
     selection of applications based on the degree to which the 
     applicant's proposed goals address the areas of national 
     strategic importance, the State's ability to manage and 
     monitor its programs on a performance basis, the State's 
     commitment to conduct the required evaluations, and the 
     degree to which the application otherwise proposes to achieve 
     the purposes of this section.
       [(c) Program Elements.--
       [(1) State agreement to assume secretary's 
     responsibilities.--
       [(A) Assignment and assumption of responsibilities.--The 
     Secretary and a State may agree, as provided in this section, 
     that the Secretary will assign and the State will assume some 
     or all of the responsibilities of the Secretary under any 
     Federal law or requirement, except for the responsibilities 
     relating to Federally recognized tribes, with respect to any 
     project constructed with federal funds under this pilot 
     program. The State shall assume these responsibilities 
     subject to the same procedural and substantive requirements 
     as would be required if such responsibilities were carried 
     out by the Secretary. When a State assumes such 
     responsibilities under a Federal law, the State shall be 
     solely responsible and solely liable for complying with and 
     carrying out that law in lieu of the Secretary and shall 
     submit a certification as provided in subsection (f)(1).
       [(B) Federal role of state.--For purposes of assuming the 
     Secretary's responsibilities under a Surface Transportation 
     System Performance Pilot Program, to the extent the State is 
     carrying out the Secretary's responsibilities under the 
     National Environmental Policy Act, title 23, United States 
     Code, or any other Federal law, the State shall be deemed to 
     be a Federal agency under such laws, and shall agree that its 
     transportation department, or any other State agency carrying 
     out a responsibility of the Secretary under this section, 
     shall be subject to such Federal laws to the same extent that 
     a Federal agency would be subject to such laws.
       [(C) State certification of assumption of 
     responsibilities.--Whenever a State assumes any of the 
     Secretary's responsibilities under a Federal law, the State 
     shall certify that it has laws and regulations that--
       [(i) authorize the State to take the actions necessary to 
     carry out the responsibilities being assumed; and
       [(ii) are comparable to the Federal Freedom of Information 
     Act and that any decision regarding the public availability 
     of a document under those laws is reviewable by a court of 
     competent authority.
       [(2) Other federal agency views.--If a State assumes a 
     responsibility of the Secretary under paragraph (1) of this 
     subsection that would have required the Secretary to consult 
     with another Federal agency, the Secretary shall solicit the 
     views of such Federal agency prior to entering into or 
     renewing any program agreement.
       [(3) Maintenance of effort.--The Secretary shall not make 
     any apportionment to a State participating in this 
     performance pilot program in any fiscal year under sections 
     104(b)(1), 104(b)(3), 104(b)(4), 104(b)(5), 105, and 144(e) 
     of title 23, United States Code, unless the State enters into 
     such agreements with the Secretary as the Secretary may 
     require to ensure that the State will maintain its non-
     Federal transportation capital expenditures in any fiscal 
     year at or above the average level of such expenditures for 
     the preceding three fiscal years.
       [(4) Federal share payable.--The Federal share payable 
     under this performance pilot program for a project funded 
     with apportionments under sections 104(b)(1), 104(b)(3), 
     104(b)(4), 104(b)(5), 105, and 144(e) of title 23, United 
     States Code, may be up to 100 percent; except that, the 
     Federal share payable for transportation enhancements under 
     section 133(d)(1), shall be determined in accordance with 
     title 23, United States Code.
       [(d) Program Agreement.--
       [(1) In general.--Each year prior to making any 
     apportionments to a participating State, the Secretary shall 
     enter into an agreement with the State establishing its 
     performance goals and performance measures.
       [(2) Agreement concerning participating state's 
     responsibilities.--The Secretary shall enter into one or more 
     agreements with a State selected for participation in this 
     pilot program concerning which, if any, Federal laws or 
     requirements the State will carry out under subsection (c). 
     The program agreement between the Secretary and the State 
     shall specify management responsibilities, including the role 
     of the State in relation to other Federal agencies.
       [(3) Goals.--The Secretary and participating State shall 
     agree, based on the State's priorities and the areas of 
     national strategic importance as determined by the Secretary, 
     on the long-term and short-term goals to be achieved using 
     the State's apportionments under the program.
       [(4) Performance measures.--The Secretary and the State 
     shall mutually establish the performance measures that the 
     State must meet relating to the goals identified in paragraph 
     (3) of this subsection. Continued participation in the pilot 
     program is contingent on the State meeting these performance 
     measures. If a State fails to meet the agreed upon 
     performance measures in two consecutive years, the Secretary 
     shall terminate a State's participation in the pilot program.
       [(5) Compliance.--If a participating State fails to comply 
     with any provision of this section, the Secretary shall take 
     such actions as necessary to ensure compliance. Corrective 
     actions may include termination

[[Page 763]]

     of the State's participation in the pilot program.
       [(e) Limitations on Agreements.--
       [(1) Civil rights.--Nothing in this section shall be 
     construed as relieving the Secretary from any of the 
     Secretary's responsibilities under title VI of the Civil 
     Rights Act of 1964 (42 U.S.C. 2000d, et seq.).
       [(2) Major projects.--Nothing in this section shall be 
     construed as relieving the Secretary from any of the 
     Secretary's responsibilities with respect to major projects 
     under section 106(h) of title 23, United States Code.
       [(3) Statewide and metropolitan planning.--Nothing in this 
     section shall be construed as relieving the Secretary from 
     any of the Secretary's responsibilities under the Statewide 
     and metropolitan planning requirements of sections 134 and 
     135 of title 23, United States Code.
       [(4) Regulatory responsibilities.--Nothing in this section 
     shall be construed to allow a State to assume any of the 
     Secretary's rulemaking authority under any Federal law.
       [(f) State Reporting and Accountability.--A State 
     participating in this pilot program shall make the following 
     reports to the Secretary. A State may combine reports as 
     appropriate.
       [(1) State certification prior to obligation of funds.--As 
     a prerequisite to the Secretary's agreement that a State will 
     fulfill or assume any of the Secretary's responsibilities, 
     and prior to the obligation of any money under this pilot 
     program in any fiscal year, the participating State shall 
     provide, and annually renew, a certification that--
       [(A) is in a form acceptable to the Secretary;
       [(B) is executed by the Governor or the State's top-ranking 
     transportation official charged with the responsibility for 
     highway construction;
       [(C) specifies that the State will fully carry out any of 
     the responsibilities it may assume;
       [(D) specifies that the State consents to assume the status 
     of the Secretary under any responsibility it may assume; and
       [(E) expressly consents on behalf of the State and himself 
     or herself to accept the jurisdiction of the Federal courts 
     for the compliance, discharge, and enforcement of any 
     responsibility of the Secretary it may assume.
       [(2) End of fiscal year state certification.--At the end of 
     each fiscal year in which a State obligates funds under this 
     pilot program, the State shall certify that it obligated such 
     funds only for projects that would otherwise be eligible for 
     assistance under title 23. Such certification shall also 
     specify that the State reserved for obligation the amounts 
     specified in section 133(d)(1) of such title as amended by 
     this Act.
       [(3) Fiscal accountability.--Each State shall provide an 
     annual accounting for the obligations in a manner determined 
     by the Secretary in such a way as to provide a basis for 
     evaluating the effect of the pilot program expenditures.
       [(4) Annual state assessment.--Each State will provide to 
     the Secretary a narrative report at the end of each year 
     describing the benefits of the pilot program to the State and 
     any suggestions for improving the pilot program.
       [(g) Termination.--This pilot program shall terminate six 
     years following enactment of this Act. Funding obligated 
     under the pilot program shall continue to be administered 
     under the terms of the pilot program until those funds have 
     been expended.

     [SEC. 1802. STEWARDSHIP AND OVERSIGHT.

       [(a) Section 106 of title 23, United States Code, is 
     amended--
       [(1) by striking subsection (e) and inserting the 
     following:
       [``(e) Value Engineering Analysis.--
       [``(1) Analysis.--For all projects on the National Highway 
     System with an estimated total cost of $25,000,000 or more, 
     and any project the Secretary deems appropriate, the State 
     shall provide a value engineering analysis or other cost 
     reduction analysis. For major projects as identified in 
     subsection (h) of this section, more than one such analysis 
     may be required.
       [``(2) Definition.--In this subsection, the term ``value 
     engineering analysis'' means a systematic process of review 
     and analysis of a project during its design phase by a 
     multidisciplined team of persons not involved in the project 
     in order to provide suggestions for reducing the total cost 
     of the project and providing a project of equal or better 
     quality. Such suggestions may include combining or 
     eliminating otherwise inefficient use of expensive parts of 
     the original proposal design for the project and total 
     redesign of the proposed project using different 
     technologies, materials, or methods so as to accomplish the 
     original purpose of the project.''; and
       [(2) by striking subsections (g) and (h) and inserting the 
     following:
       [``(g) Oversight Program.--
       [``(1) In general.--The Secretary shall establish an 
     oversight program to monitor the effective and efficient use 
     of funds authorized by this title. At a minimum, the program 
     shall be responsive to all areas related to financial 
     integrity and project delivery.
       [``(2) Financial integrity.--
       [``(A) Financial management systems.--The Secretary shall 
     perform annual reviews that address elements of the State 
     transportation departments' financial management systems that 
     affect projects approved under subsection (a). Risk 
     assessment procedures shall be used to identify review areas.
       [``(B) Project costs.--The Secretary shall develop minimum 
     standards for estimating project costs, and shall 
     periodically evaluate the States' practices for estimating 
     project costs, awarding contracts, and reducing project 
     costs.
       [``(C) Responsibility of the states.--The States are 
     responsible for determining that subrecipients of Federal 
     funds have sufficient accounting controls to properly manage 
     Federal funds. The Secretary shall periodically review the 
     States' monitoring of subrecipients.
       [``(3) Project delivery.--The Secretary shall perform 
     annual reviews that address elements of the States' project 
     delivery system, which includes one or more activities that 
     are involved in the life cycle of a project from its 
     conception to its completion. Risk assessment procedures will 
     be used to identify review areas.
       [``(4) Responsibility of the states.--The States are 
     responsible for determining that subrecipients of Federal 
     funds have adequate project delivery systems for projects 
     approved under this section. The Secretary shall periodically 
     review the States' monitoring of subrecipients.
       [``(5) Specific oversight responsibilities.--Nothing in 
     this section shall affect or discharge any oversight 
     responsibility of the Secretary specifically provided for 
     under this title or other Federal law. In addition, the 
     Secretary shall retain full oversight responsibilities for 
     the design and construction of all Appalachian development 
     highways under section 201 of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App.).
       [``(h) Major Projects.--
       [``(1) In general.--Notwithstanding any other provision in 
     this section, a recipient of Federal financial assistance for 
     a project under this title with an estimated total cost of 
     $1,000,000,000 or more, or any other project in the 
     discretion of the Secretary, shall submit to the Secretary a 
     project management plan and an annual financial plan.
       [``(2) Project management plan.--The project management 
     plan shall document the procedures and processes in place to 
     provide timely information to the project decision makers to 
     effectively manage the scope, costs, schedules, and quality, 
     and the Federal requirements of the project, and the role of 
     the agency leadership and management team in the delivery of 
     the project.
       [``(3) Financial plan.--The financial plan shall be based 
     on detailed estimates of the cost to complete the project. 
     Annual updates shall be submitted based on reasonable 
     assumptions, as determined by the Secretary, of future 
     increases in the cost to complete the project.
       [``(i) Other Projects.--A recipient of Federal financial 
     assistance for a project under this title that receives 
     $100,000,000 or more in Federal assistance for such project, 
     and that is not covered by subsection (h) of this section, 
     shall prepare an annual financial plan. Annual financial 
     plans prepared under this subsection shall be made available 
     to the Secretary for review upon the Secretary's request.''.
       [(b) Section 114(a) of such title is amended--
       [(1) in the first sentence by striking ``highways or 
     portions of highways located on a Federal-aid system'' and 
     inserting ``Federal-aid highway or portion thereof''; and
       [(2) by striking the second sentence and inserting ``The 
     Secretary shall have the right to inspect and take any 
     corrective action as the Secretary may deem appropriate.''.
       [(c) Section 117 of such title is amended by striking 
     subsection (d) and redesignating subsections (e), (f), (g), 
     and (h) as subsections (d), (e), (f), and (g), respectively.
       [(d) Section 307 of title 49, United States Code, is 
     amended to read as follows:

     [``Sec. Sec. 307. Contractor suspension and debarment policy; 
       sharing fraud monetary recoveries

       [``(a) Mandatory Enforcement Policy.--
       [``(1) Notwithstanding any other provision of law, the 
     Secretary shall--
       [``(A) debar any contractor or subcontractor convicted of 
     criminal or civil offenses involving fraud related to 
     projects receiving Federal highway or transit funds. The 
     debarment period shall be determined by the Secretary, as 
     appropriate; and
       [``(B) suspend any contractor or subcontractor upon their 
     indictment for criminal or civil offenses involving fraud, 
     subject to the approval of the Attorney General. The 
     Secretary shall have authority to exclude non-affiliated 
     subsidiaries of the debarred business entity, subject to the 
     approval of the Attorney General.
       [``(2) Upon a finding that mandatory debarment or 
     suspension of a contractor or subcontractor under subsection 
     (1), above, would be contrary to the national security 
     interests of the U.S., the Secretary may waive the debarment 
     or suspension.
       [``(b) Sharing of Monetary Recoveries.--
       [``(1) Notwithstanding any other provision of law, monetary 
     judgments accruing to the

[[Page 764]]

     Federal government from judgments in Federal criminal 
     prosecutions and civil judgments pertaining to fraud in 
     highway and transit programs shall be shared with the State 
     or local transit agency involved. The State or local transit 
     agency shall use these funds for transportation 
     infrastructure and oversight activities related to programs 
     authorized under titles 23 and 49.
       [``(2) The amount of recovered funds to be shared with the 
     affected State or local transit agency shall be determined by 
     the Attorney General in consultation with the Secretary. 
     These funds shall be considered Federal funds, to be used in 
     compliance with other relevant Federal transportation laws 
     and regulations. ---
       [``(3) The requirement for sharing of funds described in 
     subparagraph (1), above, shall not be in effect in 
     circumstances wherein the State or local transit agency is 
     found by the Department of Justice, in consultation with the 
     Secretary, to have been involved or negligent with respect to 
     the fraudulent activities.''.
       [(e) The analysis for chapter 3 of title 49 is amended by 
     revising the entry for item 307 to read as follows:

[``307. Contractor suspension and debarment policy; sharing fraud 
              monetary recoveries.''.

     [SEC. 1803. EMERGENCY RELIEF.

       [Section 125(c)(1) of title 23, United States Code, is 
     amended by striking ``$100,000,000'' and inserting 
     ``$200,000,000''.

     [SEC. 1804. FEDERAL LANDS HIGHWAYS PROGRAM.

       [(a) Definitions.--Section 101(a) of title 23, United 
     States Code, is amended--
       [(1) in paragraph (7), by striking ``public lands highway'' 
     and inserting ``recreation roads, public Forest Service 
     roads'';
       [(2) by striking paragraph (8) and inserting the following:
       [``(8) National forest system roads and trails.--The term 
     `National Forest System roads and trails' means forest roads 
     or trails under the jurisdiction of the Forest Service.'';
       [(3) by striking paragraph (10) and inserting the 
     following:
       [``(10) Forest road or trail.--The term `forest road or 
     trail' means a road or trail wholly or partly within, or 
     adjacent to, and serving National Forest System lands that is 
     necessary for the protection, administration, use, and 
     development of its resources. There are four types of forest 
     roads:
       [``(A) Classified forest road.--The term `classified forest 
     road' means a forest road that the Forest Service determines 
     to be needed for long-term motor vehicle access, including 
     State roads, county roads, privately owned roads, National 
     Forest System roads, and other roads authorized by the Forest 
     Service.
       [``(B) Unclassified forest road.--The term `unclassified 
     forest road' means a forest road not managed by the Forest 
     Service as part of the forest transportation system.
       [``(C) Temporary forest road.--The term `temporary forest 
     road' means a forest road that is authorized by the Forest 
     Service through contract, permit, lease, other written 
     authorization, or emergency operation not intended to be a 
     part of the forest transportation system and not necessary 
     for long-term resource management.
       [``(D) Public forest service road.--The term `Public Forest 
     Service Road' means a classified forest road that is open to 
     public travel for which title and maintenance responsibility 
     is vested in the United States government and which has been 
     designated a public road by the Forest Service.'';
       [(4) in paragraph (26), as redesignated by this Act, by 
     striking ``unappropriated or unreserved''; and
       [(5) by striking paragraph (27), as redesignated by this 
     Act, by redesignating paragraph (28) as (27), and by 
     inserting the following new paragraph:
       [``(28) Recreation roads.--The term `recreation roads' 
     means those public roads that provide access to museums, 
     lakes, reservoirs, visitors centers, gateways to major 
     wilderness areas, public uses areas, recreation and historic 
     sites and for which title is vested in the United States 
     Government.''.
       [(b) Federal Share Payable.--
       [(1) Section 120(k) of such title is amended by striking 
     ``Federal-aid highway''.
       [(2) Sections 120(k) and 120(l) of such title are amended 
     by striking ``section 104'' each time it appears, and 
     inserting in its place ``this title and chapter 53 of title 
     49''.
       [(c) Payments to Federal Agencies for Federal-Aid 
     Projects.--Section 132 of such title is amended by striking 
     the first two sentences and inserting the following: ``Where 
     a proposed Federal-aid project is to be undertaken by a 
     Federal agency pursuant to an agreement between a State and 
     such Federal agency, the State may (1) direct the Secretary 
     to transfer the funds for the Federal share of the project 
     directly to the Federal agency, or (2) make a deposit with or 
     payment to such Federal agency as may be required in 
     fulfillment of the State's obligation under such agreement 
     for the work undertaken or to be undertaken by such Federal 
     agency; the Secretary, upon execution of a project agreement 
     with such State for the proposed Federal-aid project, may 
     reimburse the State out of the appropriate appropriations for 
     the estimated Federal share, under the provisions of this 
     title, of the State's obligation so deposited or paid by such 
     State.''.
       [(d) Allocations.--Section 202 of such title is amended--
       [(1) in subsection (a), by inserting ``and grasslands'' 
     after ``national forests'' in the first sentence;
       [(2) by striking subsection (b) and inserting the 
     following:
       [``(b) On October 1 of each fiscal year, the Secretary 
     shall allocate the sums authorized to be appropriated for 
     such fiscal year for forest highways, after making the 
     transfer of funds provided for in subsection 204(g) of this 
     title, for each fiscal year as is provided in section 134 of 
     the Federal-Aid Highway Act of 1987, and with respect to 
     these allocations the Secretary shall give equal 
     consideration to projects that provide access to and within 
     the National Forest System, as identified by the Secretary of 
     Agriculture through renewable resource and land use planning 
     and the impact of such planning on existing transportation 
     facilities.''; and
       [(3) in subsection (d)--
       [(A) in paragraph (1), by striking ``1999'' in the heading 
     and within paragraph (1) and inserting ``2005'';
       [(B) in paragraph (2), by striking ``2000'' in the heading 
     and within paragraphs (2)(A), (2)(B), and (2)(D) and 
     inserting ``2005'', and by striking ``1999'' in paragraph 
     (2)(B) and inserting ``2004'' at each place it appears;
       [(C) in paragraph (3)(A), by inserting ``this chapter and 
     section 125(e) of'' after ``under'', and by adding ``and the 
     approved Indian reservation road transportation improvement 
     program'' after ``Act''; and
       [(D) in paragraph (4)(D), by striking the sentence after 
     ``Approval Requirement.'' and inserting: ``Funds for 
     preliminary engineering for Indian reservation road bridge 
     projects under this subsection may be made available by the 
     Secretary upon request by a tribe or by the Secretary of the 
     Interior. Funds for construction and construction engineering 
     shall be made available only after approval of the plans, 
     specifications, and estimates by the Secretary.''.
       [(e) Planning and Agency Coordination.--Section 204 of such 
     title is amended--
       [(1) in subsection (a), by inserting ``refuge roads,'' 
     after ``parkways,'';
       [(2) in subsection (b), by striking ``appropriate 
     contracts'' in the second sentence and inserting 
     ``appropriate agreements'';
       [(3) in subsection (k)--
       [(A) by striking ``(2), (5),'' and inserting ``(2), (3), 
     (5),'';
       [(B) by striking ``and'' after the semicolon at the end of 
     paragraph (1)(B);
       [(C) by striking the period after ``improvements'' at the 
     end of paragraph (1)(C) and inserting a semicolon;
       [(D) by adding after paragraph (1)(C) the following new 
     subparagraphs:
       [``(D) maintenance of public roads in National Fish 
     hatcheries under Fish and Wildlife Service jurisdiction;
       [``(E) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within a wildlife refuge; and
       [``(F) maintenance and improvement of recreational trails, 
     but such expenditures on trails are limited to 5 percent of 
     available funding per fiscal year.''.
       [(f) Safety.--
       [(1) Allocations.--Section 202 of such title is amended by 
     adding at the end the following:
       [``(f) Safety.--On October 1 of each fiscal year, the 
     Secretary shall allocate the sums authorized to be 
     appropriated for such fiscal year for safety as follows: 10 
     percent to the Bureau of Reclamation, 15 percent to the 
     Bureau of Indian Affairs, 15 percent to the Bureau of Land 
     Management, 15 percent to the Forest Service, 5 percent to 
     the Fish and Wildlife Service, 15 percent to Military Traffic 
     Management Command, 15 percent to the National Park Service, 
     and 10 percent to the U.S. Army Corps of Engineers. The 
     Secretary, from time to time, may adjust the percentage of 
     safety funds allocated to the Federal agencies listed above 
     based on the outputs of agency safety management systems, 
     other safety need analyses or/studies, and the use of 
     previously allocated safety funds.''.
       [(2) Availability of funds.--Section 203 of such title is 
     amended in the first sentence by inserting ``safety,'' after 
     ``refuge roads,'' at each place it appears.
       [(3) Use of funding.--Section 204 is amended by adding at 
     the end the following:
       [``(l) Safety Activities.--
       [``(1) In general.--Not withstanding any other provision of 
     this title, funds made available for safety shall be used by 
     the Secretary and the Secretary of the appropriate Federal 
     land management agency only to pay the cost of transportation 
     safety improvement projects, elimination of high accident 
     locations, protection or elimination of at-grade railway-
     highway crossings, collection of safety information, 
     transportation planning, bridge inspections, development and 
     operation of safety management systems, highway safety 
     education programs, and other eligible safety activities 
     authorized in Chapter 4 of this title.
       [``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of

[[Page 765]]

     the appropriate Federal land management agency, as 
     appropriate, may enter into contracts or agreements with a 
     State, subdivision of a State, or Indian tribe.
       [``(3) Exception.--Funds allocated to the Bureau of 
     Reclamation for the purposes described in this subsection are 
     exempted from the cost-share requirements of Public Law 89-
     72, The Federal Water Recreation Act.''.
       [(g) Recreation Roads.--
       [(1) Authorizations.--Section 201 of such title is amended 
     by striking ``public lands highways'' and inserting 
     ``recreation roads''.
       [(2) Allocations.--Section 202 of such title, as amended by 
     this section, is further amended by adding at the end the 
     following:
       [``(g) Recreation Roads.--On October 1 of each fiscal year, 
     the Secretary, after making the transfer provided for in 
     subsection 204(i) of this title, shall allocate the sums 
     authorized to be appropriated for such fiscal year for 
     recreation roads as follows: 6 percent to the Bureau of 
     Reclamation, 6 percent to the U.S. Army Corps of Engineers, 
     10 percent to the Bureau of Land Management, 10 percent to 
     the Military Traffic Management Command, and 68 percent to 
     the Forest Service. Recreation road funds shall be allocated 
     to projects and activities according to the relative needs of 
     each area served by these roads as indicated in the approved 
     transportation improvement programs for each agency. The 
     Secretary, from time to time, may adjust the percentage of 
     recreation road funds allocated to the Federal agencies 
     listed above based on the outputs of agency management 
     systems, other need analyses/or studies, and the use of 
     previously allocated recreation road funds.''.
       [(3) Availability of funds.--Section 203 of such title is 
     amended by striking ``public lands highways'' and inserting 
     ``recreation roads'' at each place it appears.
       [(4) Use of funding.--Section 204 of such title, as amended 
     by this section, is further amended by adding at the end the 
     following:
       [``(m) Recreation Roads.--
       [``(1) In general.--Notwithstanding any other provision of 
     this title, funds made available for recreation roads shall 
     be used by the Secretary and the Secretary of the appropriate 
     Federal land management agency only to pay the cost of--
       [``(A) maintenance or improvements of existing recreation 
     roads;
       [``(B) maintenance and improvements of eligible projects 
     described in paragraphs (1), (2), (3), (5), and (6) of 
     subsection (h) that are located in or adjacent to Federal 
     land areas under the jurisdiction of the Departments of 
     Agriculture, Defense, or the Interior;
       [``(C) transportation planning and administrative costs 
     associated with such maintenance and improvements; and
       [``(D) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within Federal land areas under the 
     jurisdiction of the Departments of Agriculture, Defense, or 
     the Interior.
       [``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency, as appropriate, may enter into contracts 
     or agreements with a State or civil subdivision of a State or 
     Indian tribe as is determined advisable.
       [``(3) New roads.--No funds available under this section 
     shall be used to pay the cost of the design or construction 
     of new recreation roads.
       [``(4) Compliance with other environmental laws.--
     Maintenance and improvement projects which are funded under 
     this subsection and are consistent with or have been 
     identified in a land use plan for the Federal area do not 
     require any additional environmental reviews or assessments 
     under the National Environmental Policy Act if the Federal 
     agency that promulgated the land use plan analyzed the 
     specific proposal under the National Environmental Policy Act 
     and there are no significant changes to the proposal bearing 
     on environmental concerns and no significant new information.
       [``(5) Exception.--Funds allocated to the Bureau of 
     Reclamation for the purposes described in this subsection are 
     exempted from the cost-share requirements of Public Law 89-
     72, The Federal Water Recreation Act.''.
       [(h) Conforming Amendments.--
       [(1) Sections 120(e) and 125(e) of title 23, United States 
     Code, are amended by inserting ``recreation roads,'' after 
     ``public lands highways,'' each place the words appear.
       [(2) Sections 120(e), 125(e), 201, 202(a), 203, section 205 
     in the heading and in subsections (a) and (d), and the 
     analysis for chapter 2 of such title are amended by striking 
     ``forest development roads'' and inserting ``National Forest 
     System roads'' each place the words appear.
       [(3) Section 204(a)(1) is amended by striking ``public 
     lands highways'' and inserting ``recreation roads, forest 
     highways'', section 204(b) is amended by striking ``public 
     lands highways'' and inserting ``recreation roads'', and 
     section 204(i) is amended by striking ``public lands 
     highways'' and inserting ``recreation roads and forest 
     highways'' each place the words appear.
       [(4) Section 217(c) is amended by striking ``public lands 
     highways'' and inserting ``refuge roads''.

     [SEC. 1805. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

       [(a) Apportionment.--The Secretary shall apportion funds 
     made available by section 1101(a)(7) of this Act for fiscal 
     years 2004 through 2009 among the States based on the latest 
     available cost to complete estimate for the Appalachian 
     development highway system under section 201 of the 
     Appalachian Regional Development Act of 1965 prepared by the 
     Appalachian Regional Commission. Such funds shall be 
     available to construct highways and access roads under 
     section 201 of the Appalachian Regional Development Act of 
     1965.
       [(b) Applicability of Title 23.--Funds authorized by 
     section 1101(a)(7) of this Act for the Appalachian 
     development highway system shall be available for obligation 
     in the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code, except that the 
     Federal share of the cost of any project under this section 
     shall be determined in accordance with such section 201 and 
     such funds shall remain available until expended.
       [(c) Use of Toll Credits.--Section 120(j)(1) of title 23, 
     United States Code is amended by adding ``and the Appalachian 
     development highway system program under section 201 of the 
     Appalachian Regional Development Act of 1965'' following 
     ``(other than the emergency relief program authorized by 
     section 125''.

     [SEC. 1806. MULTI-STATE CORRIDOR PLANNING PROGRAM.

       [(a) Establishment and Purpose.--The Secretary shall 
     establish and implement a program to support and encourage 
     multi-state transportation planning, provide for streamlined 
     transportation project development, and facilitate 
     transportation decision-making.
       [(b) Eligible Recipients.--State transportation departments 
     and metropolitan planning organizations are eligible to 
     receive and administer funds provided under this program.
       [(c) Eligible Activities.--The Secretary shall make 
     allocations under this program for multi-state highway and 
     multi-state multi-modal planning studies.
       [(d) Other Provisions Regarding Eligibility.--All studies 
     funded under this program shall be consistent with the 
     continuing, cooperative, and comprehensive planning processes 
     required by sections 134 and 135 of title 23, United States 
     Code.
       [(e) Selection Criteria.--The Secretary shall select 
     projects based on--
       [(1) the existence and significance of signed and binding 
     multi-jurisdictional agreements;
       [(2) endorsement of the study by elected State and local 
     representatives;
       [(3) prospects for early completion of the study; and
       [(4) whether the projects to be studied are located on 
     corridors identified by section 1105(c) of the Intermodal 
     Surface Transportation Efficiency Act of 1991, as amended 
     (Public Law 102-240; 105 Stat. 2032).
       [(f) Program Priorities.--In administering the program, the 
     Secretary shall--
       [(1) encourage and enable States and other jurisdictions to 
     work together to develop plans for multi-modal and multi-
     jurisdictional transportation decision-making; and
       [(2) give priority to studies that emphasize multi-modal 
     planning, including planning for operational improvements 
     that increase mobility, freight productivity, access to 
     marine ports, safety, and security while enhancing the 
     environment.
       [(g) Federal Share.--The Federal share payable, using funds 
     from all Federal sources, for any study carried out under 
     this section shall not exceed 80 percent of the total cost of 
     such study, except that the share of funds from the Highway 
     Trust Fund (other than the Mass Transit Account) shall not 
     exceed 50 percent of the total cost of such study.
       [(h) Applicability of Title 23 U.S.C.--Funds authorized to 
     be appropriated under section 1101(a)(10) of this Act to 
     carry out this section shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code.

     [SEC. 1807. BORDER PLANNING, OPERATIONS, AND TECHNOLOGY 
                   PROGRAM.

       [(a) Establishment and Purpose.--The Secretary shall 
     establish and implement a program to support coordination and 
     improvement in bi-national transportation planning, 
     operations, efficiency, information exchange, safety, and 
     security for the United States borders with Canada and 
     Mexico.
       [(b) Eligible Recipients.--State transportation departments 
     and metropolitan planning organizations at or near an 
     international land border in the States of Alaska, Arizona, 
     California, Idaho, Maine, Michigan, Minnesota, Montana, New 
     Hampshire, New Mexico, New York, North Dakota, Texas, Vermont 
     and Washington, are eligible to receive and administer funds 
     allocated under this program.
       [(c) Eligible Activities.--
       [(1) In general.--The Secretary shall make allocations 
     under the program established in this section for activities 
     at or near international land borders in the States listed in 
     subsection (b).
       [(2) Specific activities.--The activities eligible for 
     funding under this program are--
       [(A) highway and multi-modal planning or environmental 
     studies;

[[Page 766]]

       [(B) cross-border Port of Entry and safety inspection 
     improvements, including operational enhancements and 
     technology applications;
       [(C) technology and information exchange activities; and
       [(D) right-of-way acquisition, design, and construction, 
     where needed to add the enhancements or applications 
     described in subparagraphs (B) and (C), or to decrease air 
     pollution emissions from vehicles or inspection facilities at 
     border crossings.
       [(d) Other Provisions Regarding Eligibility.--All studies 
     and projects funded under this program shall be consistent 
     with the continuing, cooperative, and comprehensive planning 
     processes required by sections 134 and 135 of title 23, 
     United States Code. All regionally significant projects that 
     are part of such applications must be on the transportation 
     plans and program required by sections 134 and 135 of title 
     23, United States Code.
       [(e) Selection Criteria.--The Secretary shall select 
     projects based on---
       [(1) expected benefits, including air quality benefits, of 
     the project in relation to its costs;
       [(2) prospects for early completion of the study or 
     project;
       [(3) endorsement of the project by formally constituted bi-
     national organizations with both Federal and State or 
     provincial representation;
       [(4) the existence and significance of signed and binding 
     multi-jurisdictional agreements;
       [(5) contributions of other title 23 funds and non-title 23 
     funds above the minimum required; and
       [(6) the extent to which the project benefits are multi-
     modal.
       [(f) Program Priorities.--In administering the program, the 
     Secretary shall emphasize multi-modal planning; 
     infrastructure improvements; and operational improvements 
     that increase safety, security, freight movement, or highway 
     access to rail, marine, and air services while enhancing the 
     environment.
       [(g) Federal Share.--The Federal share payable on account 
     of any project carried out under this section shall not 
     exceed 80 percent of the total cost of such project.
       [(h) Applicability of Title 23 U.S.C.--Funds authorized to 
     be appropriated under section 1101(1)(11) of this Act to 
     carry out this section shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code.
       [(i) Allocation of Funds.--No individual project whose 
     scope of work is limited to information exchange shall 
     receive an allocation greater than $500,000 in a single year.
       [(j) Projects in Canada or Mexico.--Projects in Canada or 
     Mexico proposed by one or more border States that directly 
     and predominantly facilitate cross border vehicle and 
     commercial cargo movements at the international gateways or 
     ports of entry into the border region(s) of such State(s), 
     may be constructed using funds allocated under this program 
     provided that, prior to the obligation of such funds, Canada 
     or Mexico, or the political subdivision thereof responsible 
     for the operation of the facility to be constructed, has 
     provided assurances satisfactory to the Secretary that any 
     facility constructed under this subsection will be 
     constructed to standards equivalent to those in the United 
     States and properly maintained and used over the useful life 
     of the facility for the purpose for which the Secretary 
     allocated funds to such project.
       [(k) Set-Aside.--The Secretary shall set-aside $47,000,000 
     of the funds authorized for fiscal year 2004 under section 
     1101(a)(11) of this Act for construction of State border 
     safety inspection facilities in the States of Arizona, 
     California, New Mexico, and Texas.
       [(l) Transfer of Funds to the General Services 
     Administration.--
       [(1) State funds.--At the request of a State, funds 
     allocated under this section may be transferred to the 
     General Services Administration for the purpose of funding a 
     specific project or projects if the Secretary determines, 
     after consultation with the State transportation department 
     as appropriate, that the General Services Administration 
     should carry out the project or projects and the General 
     Services Administration agrees to accept the transfer of 
     funds and to administer those funds. The State shall provide 
     the 20 percent non-Federal share of the project cost, as 
     required under subsection (g) of this section, directly to 
     the General Services Administration. Funds so transferred or 
     provided shall not be deemed to be an augmentation of the 
     General Services Administration's appropriations and shall be 
     administered under that agency's procedures, except the 
     transferred funds shall be available for obligation in the 
     same manner as if such funds were apportioned under chapter 1 
     of title 23, United States Code. Obligation authority shall 
     be transferred to the General Services Administration in the 
     same manner and amount as the allocated funds transferred for 
     the projects.
       [(2) Direct transfer of authorized funds.--In addition to 
     allocations to States and metropolitan planning organizations 
     as provided in subection (b), the Secretary may transfer 
     funds made available to carry out this section to the General 
     Services Administration for construction of transportation 
     infrastructure projects at or near the border in the States 
     identified in subsection (b), if the Secretary determines 
     that such transfer is necessary to effectively carry out the 
     purposes of this program and the General Services 
     Administration agrees to accept the transfer of funds and to 
     administer those funds. Funds so transferred shall not be 
     deemed to be an augmentation of the General Services 
     Administration's appropriations and shall be administered 
     under that agency's procedures, except the transferred funds 
     shall be available for obligation in the same manner as if 
     such funds were apportioned under chapter 1 of title 23, 
     United States Code. Section 120 of title 23, United States 
     Code, shall not apply to funds so transferred. Obligation 
     authority shall be transferred to the General Services 
     Administration in the same manner and amount as the funds 
     transferred.

     [SEC. 1808. TERRITORIAL HIGHWAY PROGRAM AMENDMENTS.

       [(a) Definitions.--Section 101(a) of title 23, United 
     States Code, as amended by this Act, is further amended--
       [(1) by redesignating paragraphs (36) through (38) as 
     paragraphs (37) through (39) respectively, and
       [(2) by adding the following new paragraph after paragraph 
     (35):
       [``(36) Territorial highway system.--The term `territorial 
     highway system' means the system of arterial highways, 
     collector roads, and necessary inter-island connectors in the 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands that have been designated by the 
     Governor and approved by the Secretary as provided in section 
     215 of this title.''.
       [(b) Funding.--Section 104(b)(1)(A) of title 23, United 
     States Code, is amended by striking ``to the Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of Northern 
     Mariana Islands'' and inserting ``for the territorial highway 
     program authorized under section 215 of this title''.
       [(c) Eligible Projects.--Section 103(b)(6)(P) of title 23, 
     United States Code, is amended to read as follows:
       [``(P) Projects eligible for assistance under the 
     territorial highway program as provided in section 215 of 
     this title.''.
       [(d) Territorial Highway Program.--Chapter 2 of title 23, 
     United States Code, is amended by striking section 215 and 
     inserting the following:

     [``Sec. 215. Territorial highway program

       [``(a) In General.--Recognizing the mutual benefits that 
     will accrue to the Virgin Islands, Guam, American Samoa, and 
     the Commonwealth of the Northern Mariana Islands, and to the 
     United States from the improvement of highways in such 
     territories of the United States, the Secretary is authorized 
     to assist each such territorial government in a program for 
     the construction and improvement of a system of arterial and 
     collector highways, and necessary inter-island connectors 
     designated by the Governor of such territory and approved by 
     the Secretary. Federal financial assistance shall be granted 
     under this section in accordance with section 120(h) of this 
     title.
       [``(b) Technical Assistance.--In order to continue a long-
     range highway development program, the Secretary is 
     authorized to provide technical assistance to the territorial 
     governments to enable them to, on a continuing basis, engage 
     in highway planning, conduct environmental evaluations, 
     administer right-of-way acquisition and relocation assistance 
     programs, and design, construct, operate, and maintain a 
     system of arterial and collector highways, including 
     necessary inter-island connectors. The technical assistance 
     to be provided and the terms for sharing information among 
     the territories shall be set forth in the agreement required 
     by subsection (d) of this section.
       [``(c) Applicability of Chapter 1.--The provisions of 
     chapter 1 of this title (other than provisions related to the 
     apportionment and allocation of funds) shall apply to funds 
     authorized to be appropriated for the territorial highway 
     program, except as determined by the Secretary to be 
     inconsistent with the needs of the territories and the intent 
     of the territorial highway program. The specific sections of 
     chapter 1 that are applicable to each territory and the 
     extent of their applicability shall be identified in the 
     agreement provided for in subsection (d) of this section.
       [``(d) Agreement.--
       [``(1) Except as provided in paragraph (3) of this 
     subsection, no part of the appropriations authorized for the 
     territorial highway program shall be available for obligation 
     or expenditure with respect to any territory until the 
     Governor enters into a new agreement with the Secretary, 
     within 12 months after the effective date of this Act, 
     providing that the government of such territory shall--
       [``(A) implement the territorial highway program in 
     accordance with the appropriate provisions of chapter 1 of 
     this title, as provided for in subsection (c) of this 
     section;
       [``(B) design and construct a system of arterial and 
     collector highways, including necessary interisland 
     connectors, built in accordance with standards appropriate 
     for each territory and approved by the Secretary;
       [``(C) provide for the maintenance of facilities 
     constructed or operated under provisions of this section in a 
     condition to adequately

[[Page 767]]

     serve the needs of present and future traffic; and
       [``(D) implement standards for traffic operations and 
     uniform traffic control devices that are approved by the 
     Secretary.
       [``(2) The new agreement required by paragraph (1) of this 
     subsection also shall specify the kind of technical 
     assistance to be provided, include appropriate provisions 
     regarding information sharing among the territories, and 
     delineate the oversight role and responsibilities of the 
     territories and the Secretary. The agreement shall be re-
     evaluated every two years and modified as appropriate.
       [``(3) Agreements in effect on the effective date of this 
     Act shall continue in force until replaced, as required by 
     paragraph (1) of this subsection, and appropriations 
     authorized for the program shall be available for obligation 
     or expenditure while the agreements are in place.
       [``(e) Permissible Uses of Funds.--
       [``(1) Funds made available for the territorial highway 
     program may be used only for--
       [``(A) eligible surface transportation program projects 
     described in section 133(b) of this title;
       [``(B) cost effective preventive maintenance consistent 
     with the requirements of section 116 of this title;
       [``(C) ferry boats, terminal facilities, and approaches, as 
     provided for in section 129(b) and (c) of this title;
       [``(D) engineering and economic surveys and investigations 
     for the planning of future highway programs and the financing 
     thereof;
       [``(E) studies of the economy, safety, and convenience of 
     highway usage and the desirable regulation and equitable 
     taxation thereof; and
       [``(F) research and development, necessary in connection 
     with the planning, design, and maintenance of the highway 
     system, and the regulation and taxation of their use.
       [``(2) None of the appropriations authorized for the 
     territorial highway program shall be obligated or expended 
     for routine maintenance.
       [``(f) Location of Projects.--Except as provided in 
     subsection (b)(1) of section 133 of this title, territorial 
     highway projects (other than those described in subsection 
     (b)(3) and (4) of section 133 of this title) may not be 
     undertaken on roads functionally classified as local.''.
       [(h) Conforming Amendments.--The analysis of chapter 2 of 
     title 23 is amended by revising the item relating to section 
     215 to read as follows:

[``215. Territorial highway program.''.

     [SEC. 1809. FUTURE INTERSTATE SYSTEM ROUTES.

       [(a) Written Agreement of States.--Section 103(c)(4)(B)(ii) 
     of title 23, United States Code, is amended by striking 
     ``12'' and inserting ``25''.
       [(b) Removal of Designation.--Section 103(c)(4)(B)(iii)(I) 
     of such title is amended--
       [(1) by striking ``in the agreement between the Secretary 
     and the State or States''; and
       [(2) by adding at the end the following: ``An agreement 
     entered into under clause (ii) prior to the enactment of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2003 shall be deemed to include the 25 year 
     time limitation, notwithstanding an earlier construction 
     completion date in that agreement.''.

     [SEC. 1810. DONATIONS AND CREDITS.

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

     [SEC. 1811. DISADVANTAGED BUSINESS ENTERPRISES.

       [(a) General Rule.--Except to the extent that the Secretary 
     determines otherwise, not less than 10 percent of the amounts 
     made available for any program under titles I, III, and V of 
     this Act shall be expended with small business concerns owned 
     and controlled by socially and economically disadvantaged 
     individuals.
       [(b) Definitions.--In this section, the following 
     definitions apply:
       [(1) Small business concern.--The term ``small business -
     concern'' has the meaning such term has under section 3 of 
     the Small Business -Act (15 U.S.C. 632); except that such 
     term shall not include any concern or group of concerns 
     controlled by the same socially and economically 
     disadvantaged individual or individuals which has average 
     annual gross receipts over the preceding 3 fiscal years in 
     excess of $17,420,000, as adjusted by the Secretary for 
     inflation.
       [(2) Socially and economically disadvantaged individuals.--
     The term ``socially and economically disadvantaged 
     individuals'' has the meaning such term has under section 
     8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
     relevant subcontracting regulations promulgated pursuant 
     thereto; except that women shall be presumed to be socially 
     and economically disadvantaged individuals for purposes of 
     this section.
       [(c) Annual Listing of Disadvantaged Business 
     Enterprises.--Each State shall annually survey and compile a 
     list of the small business concerns referred to in subsection 
     (a) and the location of such concerns in the State and notify 
     the Secretary, in writing, of the percentage of such concerns 
     which are controlled by women, by socially and economically 
     disadvantaged individuals (other than women), and by 
     individuals who are women and are otherwise socially and 
     economically disadvantaged individuals.
       [(d) Uniform Certification.--The Secretary shall establish 
     minimum uniform criteria for State governments to use in 
     certifying whether a concern qualifies for purposes of this 
     subsection. Such minimum uniform criteria shall include, but 
     not be limited to, on-site visits, personal interviews, 
     licenses, analysis of stock ownership, listing of equipment, 
     analysis of bonding capacity, listing of work completed, 
     resume of principal owners, financial capacity, and type of 
     work preferred.
       [(e) Compliance With Court Orders.--Nothing in this section 
     limits the eligibility of an entity or person to receive 
     funds made available under titles I, III, and V of this Act, 
     if the entity or person is prevented, in whole or in part, 
     from complying with subsection (a) because a Federal court 
     issues a final order in which the court finds that the 
     requirement of subsection (a), or the program established 
     under subsection (a), is unconstitutional.

     [SEC. 1812. HIGHWAY BRIDGE PROGRAM.

       [(a) Program Name.--Section 144 of title 23, United States 
     Code, is amended in the section heading by striking 
     ``replacement and rehabilitation''.
       [(b) In General.--Section 144(a) of such title is amended 
     to read as follows:
       [``(a) Congress hereby finds and declares it to be in the 
     vital interest of the Nation that a highway bridge program be 
     established to enable the several States to improve the 
     condition of their bridges through replacement, 
     rehabilitation, and systematic preventative maintenance on 
     highway bridges over waterways, other topographical barriers, 
     other highways, or railroads when the States and the 
     Secretary find that a bridge is unsafe because of structural 
     deficiencies, physical deterioration, or functional 
     obsolescence.''.
       [(c) Scour Countermeasures.--Section 144(d) of such title 
     is amended to read as follows:
       [``(d) Whenever any State or States make application to the 
     Secretary for assistance in replacing or rehabilitating a 
     highway bridge which the priority system established under 
     subsections (b) and (c) of this section shows to be eligible, 
     the Secretary may approve Federal participation in replacing 
     such bridge with a comparable facility or in rehabilitating 
     such bridge. Whenever any State makes application to the 
     Secretary for assistance in painting, seismic retrofit, or 
     preventative maintenance of, or installing scour 
     countermeasures or applying calcium magnesium acetate, sodium 
     acetate/formate, or other environmentally acceptable, 
     minimally corrosive anti-icing and de-icing compositions to, 
     the structure of a highway bridge, the Secretary may approve 
     Federal participation in the painting, seismic retrofit, or 
     preventative maintenance of, or installation of scour 
     countermeasures or application of acetate or sodium acetate/
     formate or such anti-icing or de-icing composition to, such 
     structure. The Secretary shall determine the eligibility of 
     highway bridges for replacement or rehabilitation for each 
     State based upon the unsafe highway bridges in such State, 
     except that a State may carry out a project for preventative 
     maintenance on a bridge, seismic retrofit of a bridge, or 
     installing scour countermeasures to a bridge under this 
     section without regard to whether the bridge is eligible for 
     replacement or rehabilitation under this section.''.
       [(d) Apportionment Formula.--Section 144(e) of such title 
     is amended--
       [(1) in the third sentence by striking ``square footage'' 
     and inserting ``area'';
       [(2) in the fourth sentence by striking ``by the total cost 
     of any highway bridges constructed under subsection (m) in 
     such State, relating to replacement of destroyed bridges and 
     ferryboat services, and,'' and by striking ``1997'' and 
     inserting ``2003''; and
       [(3) by striking ``the Federal-aid primary system'' and 
     inserting ``Federal-aid highways''.
       [(e) Discretionary Bridge Program.--Section 144(g) of such 
     title is amended--
       [(1) by striking ``Set Asides.'' in the heading of (g) and 
     all that follows through paragraph (2)(B);
       [(2) by striking ``(3)'' and redesignating paragraph (3) as 
     subsection (g); and
       [(3) in subsection (g), as redesignated, by--
       [(A) striking ``nor more than 35 percent'';
       [(B) striking ``1987'' and inserting ``2004'';
       [(D) striking ``2003'' and inserting ``2009''; and
       [(E) striking ``paint'' and inserting ``perform systematic 
     preventative maintenance''.
       [(f) Inventories and Reports.--Section 144(i) of such title 
     is amended--
       [(1) in paragraph (3), by striking ``and'';
       [(2) in paragraph (4), by striking ``section.'' and 
     inserting ``section; and''; and
       [(3) after paragraph (4), by striking ``Such reports shall 
     be submitted to such committees biennially at the same time 
     as the report required by section 307(f)(1) of this title is 
     submitted to Congress.'' and inserting the following:
       [``(5) submit reports required by this subsection to such 
     committees biennially at the

[[Page 768]]

     same time as the report required by section 502(g) of this 
     title.''.
       [(g) Off-System Bridge Program.--Section 144(n) of such 
     title is amended by inserting ``general engineering'' between 
     ``all'' and ``standards''.
       [(h) Historic Bridge Program.--Section 144(o) of such title 
     is amended--
       [(1) in paragraph (3), by striking ``title (including this 
     section)'' and inserting ``section'' and by inserting ``200 
     percent of'' after ``shall not exceed''; and
       [(2) in paragraph (4), by inserting ``200 percent of'' 
     after ``not to exceed'', and by striking ``title'' at the end 
     of the paragraph and inserting ``section''.
       [(i) Water Resources Projects.--Section 144 of such title 
     is further amended by adding at the end the following:
       [``(r) Notwithstanding any other provision of law, any 
     bridge funded under this title shall not be considered a 
     `water resources project' as that term is used in the Wild 
     and Scenic Rivers Act (16 U.S.C. 1271-1287).''.
       [(j) Conforming Amendment.--The analysis for chapter 1 of 
     title 23 is amended in the item relating to section 144 by 
     striking ``replacement and rehabilitation''.

     [SEC. 1813. DESIGN-BUILD.

       [Section 112(b)(3) of title 23, United States Code, is 
     amended by striking subparagraph (C) and inserting the 
     following in its place:
       [``(C) Qualified projects.--A qualified project is a 
     project under this chapter for which the Secretary has 
     approved the use of design-build contracting under criteria 
     specified in regulations issued by the Secretary.''.

     [SEC. 1814. INTERNATIONAL FERRIES.

       [Section 129(c)(5) of title 23, United States Code, is 
     amended--
       [(1) by striking ``and'' the first place it appears in the 
     first sentence, and inserting a comma;
       [(2) by adding ``, and the islands that comprise a 
     territory of the United States'' after ``Puerto Rico'' in the 
     first sentence; and
       [(3) by adding ``operations between the islands which 
     comprise a territory of the United States,'' after ``Puerto 
     Rico,'' in the second sentence.

     [SEC. 1815. ASSUMPTION OF RESPONSIBILITY FOR TRANSPORTATION 
                   ENHANCEMENTS, RECREATIONAL TRAILS, AND 
                   TRANSPORTATION AND COMMUNITY AND SYSTEM 
                   PRESERVATION PROGRAM PROJECTS.

       [(a) In General.--Chapter 1 of title 23, United States 
     Code, as amended by this Act, is further amended by inserting 
     the following new section after section 165:

     [``Sec. 166. Assumption of responsibility for transportation 
       enhancements, recreational trails, and transportation, 
       community, and system preservation program projects

       [``(a) Assumption of Secretary's Responsibilities Under 
     Applicable Federal Laws.--
       [``(1) In general.--Upon mutual agreement the Secretary may 
     assign, and the State may assume, any of the Secretary's 
     responsibilities (except responsibilities relating to 
     Federally recognized tribes) for environmental reviews, 
     consultation, decision-making or other actions under any 
     Federal law applicable to projects that--
       [``(A) are funded under section 104(h) or section 167 of 
     this title; or
       [``(B) meet the definition of a transportation enhancement 
     activity as set forth in section 101(a)(38) of this title.
       [``(2) Limitations.--The State shall assume these 
     responsibilities subject to the same procedural and 
     substantive requirements as would be required if such 
     responsibilities were carried out by the Secretary. When a 
     State assumes any responsibility under a Federal law pursuant 
     to this section, it assents to Federal jurisdiction and shall 
     be solely responsible and solely liable for complying with 
     and carrying out that law in lieu of the Secretary.
       [``(b) Agreements.--The Secretary and the State shall enter 
     into a memorandum of understanding setting forth the 
     responsibilities to be assigned under this section and the 
     terms and conditions under which such assignments are to be 
     made. In the memorandum of understanding the State shall 
     consent to accept the jurisdiction of the Federal courts for 
     the compliance, discharge, and enforcement of any 
     responsibility of the Secretary it may assume. Such memoranda 
     of understanding shall be established for periods of no more 
     than three years. The Secretary shall review and determine 
     compliance with the memorandum of understanding and the laws 
     assigned by it to the State on an annual basis for the first 
     three years of the agreement and, subsequently, on a periodic 
     basis to be determined by mutual agreement but no longer than 
     every three years.
       [``(c) Termination.--The Secretary may terminate any 
     assignment of responsibility under this section upon a 
     determination that a State is not adequately meeting the 
     terms and conditions of the memorandum of understanding.
       [``(d) State Defined.--For the recreational trails program, 
     ``State'' means the State agency designated by the Governor 
     of the State in accordance with section 206(c)(1) of this 
     title.
       [``(e) Preservation of Public Interest Consideration.--
     Nothing contained in this section shall be construed to limit 
     the requirements under any applicable law providing for the 
     consideration and preservation of the public interest, 
     including public participation and community values in 
     transportation decision-making.
       [``(f) State Subject to Federal Laws.--For purposes of 
     assuming the Secretary's responsibilities under this section, 
     the State agency signing the agreement in subsection (c) is 
     deemed to be a Federal agency to the extent the State is 
     carrying out the Secretary's responsibilities under the 
     National Environmental Policy Act, under this title, and 
     under any other Federal law.''.
       [(b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, as amended by this Act, is 
     further amended by inserting after the item relating to 
     section 165 the following:

[``166. Assumption of responsibility for transportation enhancements, 
              recreational trails, and transportation and community and 
              system preservation program projects.''.

     [SEC. 1816. TRANSPORTATION, COMMUNITY, AND SYSTEM 
                   PRESERVATION PROGRAM.

       [(a) Transportation, Community, and System Preservation 
     Program.--Chapter 1 of title 23, United States Code, as 
     amended by this Act, is further amended by inserting the 
     following new section after section 166:

     [``Sec. 167. Transportation, community, and system 
       preservation program

       [``(a) Establishment and Purpose.--The Secretary shall 
     establish a comprehensive program to investigate and address 
     the relationships between transportation and community and 
     system preservation and identify private sector-based 
     initiatives. Through this program, the Secretary shall 
     facilitate the planning, development, and implementation of 
     strategies by States, metropolitan planning organizations, 
     federally-recognized tribes, and local governments to 
     integrate transportation, community, and system preservation 
     plans and practices that address one or more of the 
     following:
       [``(1) Improve the efficiency of the transportation system.
       [``(2) Reduce the impacts of transportation on the 
     environment.
       [``(3) Reduce the need for costly future investments in 
     public infrastructure.
       [``(4) Provide efficient access to jobs, services, and 
     centers of trade.
       [``(5) Examine development patterns and identify strategies 
     to encourage private sector development patterns which 
     achieve the goals identified in paragraphs (1) through (4).
       [``(b) Funding.--Funds authorized to be apportioned under 
     section 104(q) of this title shall be available to carry out 
     the provisions of this section.''.
       [(b) Section 104 of such title is amended by adding after 
     subsection (p), as added by this Act, the following:
       [``(q) Transportation, Community, and System Preservation 
     Program.--
       [``(1) Set-aside.--On October 1 of each fiscal year for 
     fiscal years 2004 through 2009, the Secretary, after making 
     the deductions authorized by subsections (a) and (f), shall 
     set aside $26,000,000 of the remaining funds authorized to be 
     apportioned under subsection (b)(3) for carrying out the 
     Transportation, Community, and System Preservation Program 
     under section 167 of this chapter.
       [``(2) Apportionment.--
       [``(A) From amounts set aside under paragraph (1), the 
     Secretary shall apportion $500,000 each fiscal year to each 
     State, including the District of Columbia and Puerto Rico, to 
     carryout the provisions of section 167.
       [``(B) A State shall also make funds apportioned under this 
     subsection available to metropolitan planning organizations, 
     federally recognized tribes, and local governments in a 
     manner and amounts to be determined by the State to carryout 
     the provisions of section 167.''.
       [(c) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, as amended by this Act, is 
     further amended by inserting after the item relating to 
     section 166 the following:

[``167. Transportation, community, and system preservation program.''.

     [SEC. 1817. PROGRAM EFFICIENCES--FINANCE.

       [Section 115 of title 23, United States Code, is amended--
       [(1) by striking ``(a)'' and all that follows through 
     subsection (a)(1)(B);
       [(2) by striking subsection (b);
       [(3) by redesignating subsection (c) as subsection (d);
       [(4) by redesignating subsections (a)(2), (a)(2)(A), and 
     (a)(2)(B) as subsections (c), (c)(1), and (c)(2) 
     respectively; and
       [(5) by inserting after the section heading the following:
       [``(a) The Secretary may authorize a State to proceed with 
     a project authorized under this title without the aid of 
     Federal funds in accordance with all procedures and all 
     requirements applicable to such a project, except insofar as 
     such procedures and requirements limit the State to 
     implementation of projects with the aid of Federal funds 
     previously apportioned or allocated to it or limit a State to 
     implementation of a project with obligation authority 
     previously allocated to it.

[[Page 769]]

       [``(b) The Secretary, upon the request of the State and 
     execution of a project agreement, may obligate the Federal 
     share, or a portion of the Federal share, of the cost of a 
     project authorized under this section from any category of 
     funds for which the project is eligible.''.

   [Subtitle I--Technical Corrections to Title 23, United States Code

     [SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT.

       [(a) Letting of Contracts.--Section 112 of title 23, United 
     States Code, is amended--
       [(1) by striking subsection (f); and
       [(2) by redesignating subsection (g) as subsection (f).
       [(b) Fringe and Corridor Parking Facilities.--Section 
     137(a) of title 23, United States Code, is amended in the 
     first sentence by striking ``on the Federal-aid urban 
     system'' and inserting ``on a Federal-aid highway''.
       [(c) Repeal of Obsolete Sections of Title 23.--
       [(1) Priority primary routes.--Section 147 of title 23, 
     United States Code, is repealed.
       [(2) Development of a national scenic and recreational 
     highway.--Section 148 of title 23, United States Code, is 
     repealed.
       [(3) Access highways to public recreation areas on certain 
     lakes.--Section 155 of title 23, United States Code, is 
     repealed.
       [(4) Conforming amendments.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the 
     items relating to sections 147, 148, and 155.

     [SEC. 1902. CLARIFICATION OF DATE.

       [Section 109(g) of title 23, United States Code, is amended 
     in the first sentence by striking ``the day of enactment of 
     the Federal-Aid Highway Act of 1970'' and inserting 
     ``December 31, 1970,''.

     [SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING 
                   FUNDING SOURCES IN TITLE 23.

       [(a) In General.--Section 154 of the Federal-Aid Highway 
     Act of 1987 (23 U.S.C. 101 note; 101 Stat. 209) is--
       [(1) transferred to title 23, United States Code;
       [(2) redesignated as section 321;
       [(3) moved to appear after section 320 of that title; and
       [(4) amended by striking the section heading and inserting 
     the following:

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

       [(b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by inserting after 
     the item relating to section 320 the following:

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

     [SEC. 1904. INCLUSION OF ``BUY AMERICA'' REQUIREMENTS IN 
                   TITLE 23.

       [(a) In General.--Section 165 of the Highway Improvement 
     Act of 1982 (23 U.S.C. 101 note; 96 Stat. 2136) is--
       [(1) transferred to title 23, United States Code;
       [(2) redesignated as section 313;
       [(3) moved to appear after section 312 of that title; and
       [(4) amended by striking the section heading and inserting 
     the following:

     [``Sec. 313. Buy America''.

       [(b) Conforming Amendments.--
       [(1) The analysis for chapter 3 of title 23,United States 
     Code, is amended by inserting after the item relating to 
     section 320 the following:

[``313. Buy America.''.
       [(2) Section 313 of title 23, United States Code (as added 
     by subsection (a)), is amended--
       [(A) in subsection (a), by striking ``any funds authorized 
     to be appropriated by this Act or by any Act amended by this 
     Act or, after the date of enactment of this Act, any funds 
     authorized to be appropriated to carry out this Act, title 
     23, United States Code, or the Surface Transportation 
     Assistance Act of 1978'' and inserting ``any funds authorized 
     to be appropriated to carry out the Surface Transportation 
     Assistance Act of 1982 (96 Stat. 2097) or this title'';
       [(B) in subsection (b), by redesignating paragraph (4) as 
     paragraph (3);
       [(C) in subsection (d), by striking ``this Act, the Surface 
     Transportation Assistance Act of 1978, or title 23, United 
     States Code,'' and inserting ``the Surface Transportation 
     Assistance Act of 1982 (96 Stat. 2097) or this title'';
       [(D) by striking subsection (e); and
       [(E) by redesignating subsections (f) and (g) as 
     subsections (e) and (f), respectively.

     [SEC. 1905. TECHNICAL AMENDMENTS TO 23 UNITED STATES CODE 140 
                   (NONDISCRIMINATION).

       [(a) Section 140(a) of title 23, United States Code, is 
     amended as follows:
       [(1) At the beginning of the second sentence, strike the 
     word ``He'' and insert in its place the words ``The 
     Secretary''.
       [(2) In the first sentence, strike ``subsection (a) of 
     section 105'' and insert in its place ``section 135''.
       [(3) In the third sentence, strike the phrase ``where he 
     considers it necessary'' and insert in its place the phrase 
     ``where necessary''.
       [(4) The last sentence is amended to read as follows: ``The 
     Secretary shall periodically obtain from the Secretary of 
     Labor and the respective State transportation departments 
     information which will enable the Secretary to judge 
     compliance with the requirements of this section and the 
     Secretary of Labor shall render to the Secretary such 
     assistance and information as the Secretary shall deem 
     necessary to carry out the equal employment opportunity 
     program required hereunder.''.
       [(b) Section 140(b) of title 23, United States Code, is 
     amended as follows:
       [(1) In the first sentence, strike the words ``highway 
     construction'' and insert ``surface transportation'';
       [(2) In the second sentence, strike the phrase ``as he may 
     deem necessary'' and insert in its place the phrase ``as 
     necessary'', and strike the phrase ``not to exceed $2,500,000 
     for the transition quarter ending September 30, 1976, and''.
       [(3) In the fourth sentence, strike the phrase ``shall not 
     be not be applicable to contracts'' and insert in its place 
     the phrase ``shall not be applicable to contracts''.
       [(c) The second sentence of section 140(c) of title 23, 
     United States Code, is amended by striking the phrase ``the 
     Secretary shall deduct such sums as he may deem necessary,'' 
     and inserting in its place the phrase ``the Secretary shall 
     deduct such sums as necessary,''.
       [(d) Section 140(d) of title 23, United States Code, is 
     amended by striking from its catchline the words ``and 
     contracting''.

     [SEC. 1906. FEDERAL SHARE PAYABLE FOR PROJECTS FOR 
                   ELIMINATION OF HAZARDS OF RAILWAY-HIGHWAY 
                   CROSSINGS.

       [Section 120(c) of title 23, United States Code, is amended 
     by amending the first sentence of subsection (c) to read as 
     follows: ``The Federal share payable on account of any 
     project for traffic control signalization; safety rest areas; 
     pavement marking; commuter carpooling and vanpooling; rail-
     highway crossing closure; projects for elimination of hazards 
     of railway-highway crossings, as identified in section 2604 
     of Public Law 106-246 (114 Stat. 511, 559); or installation 
     of traffic signs, traffic lights, guardrails, impact 
     attenuators, concrete barrier endtreatments, breakaway 
     utility poles, or priority control systems for emergency 
     vehicles or transit vehicles at signalized intersections may 
     amount to 100 percent of the cost of construction of such 
     projects; except that not more than 10 percent of all sums 
     apportioned for all the Federal-aid systems for any fiscal 
     year in accordance with section 104 of this title shall be 
     used under this subsection.''.

                       [TITLE II--HIGHWAY SAFETY

     [SEC. 2001. HIGHWAY SAFETY PROGRAMS.

       [(a) Performance Grants.--Section 402 (k) of title 23, 
     United States Code, is amended to read as follows:
       [``(k) Performance Grants.--In addition to other grants 
     authorized by this section, the Secretary shall make grants 
     in accordance with this subsection. Funds authorized to carry 
     out this subsection in a fiscal year shall be subject to a 
     deduction not to exceed 5 percent for the necessary costs of 
     administering this subsection.
       [``(1) General performance grants.--On or before December 
     31, 2003, and on or before each December 31 thereafter 
     through December 31, 2008, the Secretary shall make grants to 
     States based upon the performance of their highway safety 
     programs in the following categories: (i) motor vehicle crash 
     fatalities; (ii) alcohol-related crash fatalities; and (iii) 
     motorcycle, bicycle, and pedestrian crash fatalities.
       [``(A) Determinations by the secretary.--The Secretary, 
     through a rulemaking proceeding, shall determine--
       [``(i) measures for calculating and scoring performance in 
     each category under this paragraph, using the data for the 
     most recent calendar year for which the data are available 
     from--

       [``(I) fatality data provided by the National Highway 
     Traffic Safety Administration; and
       [``(II) vehicle miles traveled determined by the Federal 
     Highway Administration.

       [``(ii) goals for achievement and annual progress in each 
     category under this paragraph that reflect the potential of 
     each goal to save lives; and
       [``(iii) a weighting system for all of the goals that 
     reflects the relative potential of each goal to save lives.
       [``(B) Amount of grants.--The Secretary shall determine the 
     amount of funds available to a State in a fiscal year for 
     grants under this paragraph, based on the State's achievement 
     or annual progress in each of the categories under this 
     paragraph, using the measures, goals and weighting system 
     established under this paragraph, the amount appropriated to 
     carry out the grants for such fiscal year, and the ratio that 
     the funds apportioned to the State under section 402(c) for 
     such fiscal year bears to the funds apportioned under section 
     402(c) for such fiscal year to all the States that qualify 
     for a grant for such fiscal year.
       [``(2) Safety belt performance grants.
       [ ``(A) Primary safety belt use law.--
       [``(i) For fiscal years 2004 and 2005, the Secretary shall 
     make a grant to each State that enacted, and is enforcing, a 
     primary safety belt use law for all passenger motor vehicles 
     that became effective by December 31, 2002.
       [``(ii) For each of fiscal years 2004 through 2009, the 
     Secretary shall, after making grants under paragraph 
     (2)(A)(i) of this subsection, make a one-time grant to each 
     State

[[Page 770]]

     that either enacts for the first time after December 31, 
     2002, and has in effect a primary safety belt use law for all 
     passenger motor vehicles, or, in the case of a State that 
     does not have such a primary safety belt use law, has a State 
     safety belt use rate in the preceding fiscal year of at least 
     90 percent, as measured under criteria determined by the 
     Secretary.
       [``(iii) Of the funds authorized for grants under this 
     subsection, $100,000,000 in each of fiscal years 2004 through 
     2009 shall be available for grants under this paragraph. The 
     amount of a grant available to a State in each of fiscal 
     years 2004 and 2005 under paragraph (2)(A)(i) of this 
     subsection shall be equal to one-half of the amount of funds 
     apportioned to the State under subsection (c) of this section 
     for fiscal year 2003. The amount of a grant available to a 
     State in fiscal year 2004 or in a subsequent fiscal year 
     under paragraph (2)(A)(ii) of this subsection shall be equal 
     to five times the amount apportioned to the State for fiscal 
     year 2003 under subsection (c). Notwithstanding subsection 
     (d) of this section, the Federal share payable for grants 
     under this paragraph shall be 100 percent. If the total 
     amount of grants under paragraph (2)(A)(ii) for a fiscal year 
     exceeds the amount of funds available in the fiscal year, 
     grants shall be made to each eligible State, in the order in 
     which its primary safety belt use law became effective or its 
     safety belt use rate reached 90 percent, until the funds for 
     the fiscal year are exhausted. A State that does not receive 
     a grant for which it is eligible in a fiscal year shall 
     receive the grant in the succeeding fiscal year so long as 
     its law remains in effect or its safety belt use rate remains 
     at or above 90 percent. If the total amount of grants under 
     this paragraph for a fiscal year is less than the amount 
     available in the fiscal year, the Secretary shall use any 
     funds that exceed the total amount for grants under paragraph 
     (2)(B) of this subsection.
       [``(B) Safety belt use rate.--
       [``(i) On or before December 31, 2003, and on or before 
     each December 31 thereafter through December 31, 2008, the 
     Secretary shall make grants to States based upon their safety 
     belt use rate in the preceding fiscal year.
       [``(ii) The Secretary, through a rulemaking, shall 
     determine measures for calculating and scoring the 
     performance for safety belt use rates, using data for the 
     most recent calendar year for which State safety belt use 
     rate data are available from observational safety belt 
     surveys conducted in accordance with criteria established by 
     the Secretary.
       [``(iii) Of the funds authorized for grants under this 
     subsection, $25,000,000 for fiscal year 2004, $27,000,000 for 
     fiscal year 2005, $29,000,000 for fiscal year 2006, 
     $31,000,000 for fiscal year 2007, $34,000,000 for fiscal year 
     2008, and $36,000,000 for fiscal year 2009 shall be available 
     for safety belt use rate grants under this paragraph. The 
     Secretary shall determine the amount of funds available to a 
     State in a fiscal year based on the State's achievement or 
     annual progress in its safety belt use rate, the amount 
     appropriated to carry out the grants for such fiscal year, 
     and the ratio that the funds apportioned to the State under 
     section 402(c) for such fiscal year bears to the funds 
     apportioned under section 402(c) for such fiscal year to all 
     the States that qualify for a grant for such fiscal year. 
     Notwithstanding subsection (d) of this section, the Federal 
     share payable for grants under this paragraph shall be 100 
     percent.
       [``(C) Definition.--In this paragraph, passenger motor 
     vehicle means a passenger car, pickup truck, van, minivan, or 
     sport utility vehicle, with a gross vehicle weight rating of 
     less than 10,000 pounds.
       [``(3) Use of grants.--A State allocated an amount for a 
     grant under paragraph (1)(A) of this subsection shall use the 
     amount for activities eligible for assistance under this 
     section, except that it may use up to 50 percent of the 
     amount for activities eligible under section 150 of this 
     title and consistent with the State's strategic highway 
     safety plan under section 151 of this title that are not 
     otherwise eligible for assistance under this section. A State 
     allocated an amount for a grant under paragraph (2)(A) of 
     this subsection may use the amount for activities eligible 
     for assistance under this section or for activities eligible 
     under section 150 of this title and consistent with the 
     State's strategic highway safety plan under section 151 of 
     this title that are not otherwise eligible for assistance 
     under this section. A State allocated an amount for a grant 
     under paragraph (2)(B) of this subsection, including any 
     amount transferred under paragraph (2)(A) of this subsection, 
     shall use the amount for safety belt use programs eligible 
     for assistance under this section, except that it may use up 
     to 50 percent of the amount for activities eligible under 
     section 150 of this title and consistent with the State's 
     strategic highway safety plan under section 151 of this title 
     that are not otherwise eligible for assistance under this 
     section.''.
       [(b) Impaired Driving Grants.--Section 402 of title 23, 
     United States Code, is amended by adding at the end the 
     following subsection:
       [``(l)(1) Impaired Driving Grants.--In addition to other 
     grants authorized by this section and subject to the 
     provisions of this subsection, the Secretary shall design and 
     implement a discretionary grant program to develop, 
     demonstrate, and evaluate comprehensive State programs to 
     reduce impaired driving in States with a high number of 
     alcohol-related fatalities and a high rate of alcohol-related 
     fatalities relative to vehicle miles traveled and population.
       [``(2) Procedure.--The Secretary shall establish a 
     procedure for submitting grant applications under this 
     subsection, and shall select from among the applicants the 
     States to participate in the program.
       [``(3) Use of Grants.--A grant to a State under this 
     subsection shall be used only to carry out the State's 
     program under paragraph (1).
       [``(4) Administrative Expenses.--Funds authorized to be 
     appropriated to carry out this subsection in a fiscal year 
     shall be subject to a deduction not to exceed 10 percent for 
     the costs of evaluating the programs and administering the 
     provisions of this subsection.
       [``(5) Federal Share.--Notwithstanding subsection (d) of 
     this section, the Federal share payable for a grant under 
     this subsection shall be--
       [``(A) 100 percent in the first and second fiscal years in 
     which the State receives a grant;
       [``(B) 75 percent in the third and fourth fiscal years in 
     which the State receives a grant; and
       [``(C) 50 percent in the fifth and sixth fiscal years in 
     which the State receives a grant.''.

     [SEC. 2002. HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.

       [Section 403(a) (Authority of the Secretary) of title 23, 
     United States Code, is amended by adding the following 
     paragraphs at the end:
       [``(4) Emergency medical services.--In addition to the 
     authority provided under this subsection, the Secretary is 
     authorized to use funds appropriated to carry out this 
     section to enhance coordination among Federal agencies 
     involved with State, local, tribal, and community-based 
     emergency medical services. In exercising this authority, the 
     Secretary may coordinate with State and local governments, 
     the Bureau of Indian Affairs on behalf of Indian tribes, 
     private industry, and other interested parties; collect and 
     exchange emergency medical services data and information; 
     examine emergency medical services needs, best practices, and 
     related technology; and develop emergency medical services 
     standards and guidelines, and plans for the assessment of 
     emergency medical services systems.
       [``(5) International cooperation.--In addition to the 
     authority provided under this subsection, the Secretary is 
     authorized to use funds appropriated to carry out this 
     section to participate and cooperate in international 
     activities to enhance highway safety by such means as 
     exchanging safety information; conducting safety research; 
     and examining safety needs, best practices, and new 
     technology.
       [``(6) National motor vehicle crash causation survey.--In 
     addition to the authority provided under this subsection, the 
     Secretary is authorized to use funds appropriated to carry 
     out this section to develop and conduct a nationally 
     representative survey to collect on-scene motor vehicle crash 
     causation data.''.

     [SEC. 2003. EMERGENCY MEDICAL SERVICES.

       [(a) Federal Coordination and Enhanced Support of Emergency 
     Medical Services.--Chapter 4 of title 23, United States Code, 
     is amended by revising section 407 to read as follows:

     [``Sec. 407. Federal coordination and enhanced support of 
       emergency medical services

       [``(a) Federal Interagency Committee on Emergency Medical 
     Services.--
       [``(1) In general.--The Secretary of Transportation and the 
     Secretary of Homeland Security through the Under Secretary 
     for Emergency Preparedness and Response, in consultation with 
     the Secretary of Health and Human Services, shall establish a 
     Federal Interagency Committee on Emergency Medical Services 
     (referred to as the `Interagency Committee on EMS') that 
     shall--
       [``(A) assure coordination among the Federal agencies 
     involved with State, local, tribal or regional emergency 
     medical services and 9-1-1 systems;
       [``(B) identify State, local, tribal or regional emergency 
     medical services and 9-1-1 needs;
       [``(C) recommend new or expanded programs, including grant 
     programs, for improving State, local, tribal or regional 
     emergency medical services and implementing improved EMS 
     communications technologies, including wireless E9-1-1;
       [``(D) identify ways to streamline the process through 
     which Federal agencies support State, local, tribal or 
     regional emergency medical services;
       [``(E) assist State, local, tribal or regional emergency 
     medical services in setting priorities based on identified 
     needs; and
       [``(F) advise, consult with and make recommendations on 
     matters relating to the implementation of the coordinated 
     State emergency medical services program established under 
     subsection (b) of this section.
       [``(2) Membership.--The membership of the Interagency 
     Committee on EMS shall consist of the following officials, or 
     their designees:

[[Page 771]]

       [``(A) Administrator, National Highway Traffic Safety 
     Administration.
       [``(B) Director, Preparedness Division, Emergency 
     Preparedness and Response Directorate, Department of Homeland 
     Security.
       [``(C) Administrator, Health Resources and Services 
     Administration.
       [``(D) Director, Centers for Disease Control and 
     Prevention.
       [``(E) Administrator, United States Fire Administration, 
     Emergency Preparedness and Response Directorate, Department 
     of Homeland Security.
       [``(F) Director, Center for Medicare and Medicaid Services.
       [``(G) Undersecretary of Defense for Personnel and 
     Readiness, Department of Defense.
       [``(H) Assistant Secretary for Public Health Emergency 
     Preparedness, Department of Health and Human Services.
       [``(I) Director, Indian Health Service, Department of 
     Health and Human Services.
       [``(J) Chief, Wireless Telecom Bureau, Federal 
     Communications Commission.
       [``(K) A representative of any other Federal agency 
     identified by the Secretary of Transportation or the 
     Secretary of Homeland Security through the Under Secretary 
     for Emergency Preparedness and Response, in consultation with 
     the Secretary of Health and Human Services, as having a 
     significant role in the purposes of the Interagency Committee 
     on EMS.
       [``(3) Administration.--The National Highway Traffic Safety 
     Administration, in cooperation with the Director, 
     Preparedness Division, Emergency Preparedness and Response 
     Directorate, Department of Homeland Security, shall provide 
     administrative support to the Interagency Committee on EMS, 
     including scheduling meetings, setting agendas, keeping 
     minutes and records, and producing reports.
       [``(4) Leadership.--The members of the Interagency 
     Committee on EMS shall select a chairperson of the Committee 
     annually.
       [``(5) Meetings.--The Interagency Committee on EMS shall 
     meet as frequently as determined necessary by the chairperson 
     of the Committee.
       [``(6) Annual reports.--The Interagency Committee on EMS 
     shall prepare an annual report to Congress on the Committee's 
     activities, actions, and recommendations.
       [``(b) Coordinated Nationwide Emergency Medical Services 
     Program.--
       [``(1) General authority.--The Secretary of Transportation, 
     through the Administrator of the National Highway Traffic 
     Safety Administration, is authorized and directed to 
     cooperate with other Federal departments and agencies, and 
     may assist State and local governments and EMS organizations, 
     both fire-based and otherwise, private industry, and other 
     interested parties, to ensure the development and 
     implementation of a coordinated nationwide emergency medical 
     services program designed to strengthen transportation safety 
     and public health and to implement improved EMS communication 
     systems including 9-1-1. For the purposes of this section, 
     the term `State' means any one of the fifty States, the 
     District of Columbia, Puerto Rico, the Virgin Islands, Guam, 
     American Samoa, the Commonwealth of the Northern Mariana 
     Islands, and the Secretary of the Interior on behalf of 
     Indian Tribes.
       [``(2) Coordinated state emergency medical services 
     program.--Each State shall establish a program, approved by 
     the Secretary, to coordinate the emergency medical services 
     and resources deployed throughout the State, so as to ensure 
     improved EMS communication systems including 9-1-1, 
     utilization of established best practices in system design 
     and operations, implementation of quality assurance programs, 
     and incorporation of data collection and analysis programs 
     that facilitate system development and data linkages with 
     other systems and programs useful to emergency medical 
     services.
       [``(3) Administration of state programs.--The Secretary may 
     not approve a coordinated State emergency medical services 
     program under this subsection unless the program--
       [``(A) provides that the Governor of the State is 
     responsible for its administration through a State office of 
     emergency medical services that has adequate powers and is 
     suitably equipped and organized to carry out such program and 
     coordinates such program with the highway safety office of 
     the State; and
       [``(B) authorizes political subdivisions of the State to 
     participate in and receive funds under such program, 
     consistent with goal of achieving statewide coordination of 
     emergency medical services and 9-1-1 activities.
       [``(4) Use of funds; administrative expenses; 
     apportionments.--Funds authorized to be appropriated to carry 
     out this subsection shall be used to aid the States in 
     conducting coordinated emergency medical services and 9-1-1 
     programs that are in accordance with the provisions of 
     paragraph (2). Such funds shall be subject to a deduction not 
     to exceed 10 percent for the necessary costs of administering 
     the provisions of this subsection, and the remainder shall be 
     apportioned among the States. Such funds shall be apportioned 
     as follows: 75 percent in the ratio that the population of 
     each State bears to the total population of all the States, 
     as shown by the latest available Federal census, and 25 
     percent in the ratio that the public road mileage in each 
     State bears to the total public road mileage in all States. 
     For the purpose of this subsection, a `public road' means any 
     road under the jurisdiction of and maintained by a public 
     authority and open to public travel. Public road mileage as 
     used in this subsection shall be determined as of the end of 
     the calendar year prior to the year in which the funds are 
     apportioned and shall be certified to by the Governor of the 
     State and subject to approval by the Secretary. The annual 
     apportionment to each State shall not be less than one-half 
     of 1 percent of the total apportionment, except that the 
     apportionment to the Secretary of the Interior on behalf of 
     Indian tribes shall not be less than three-fourths of 1 
     percent of the total apportionment, and the apportionments to 
     the Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands shall not be 
     less than one-quarter of 1 percent of the total 
     apportionment.
       [``(5) Contract authority.--The provisions contained in 
     section 402(d) of this chapter shall apply to this 
     subsection.
       [``(6) Federal share.--The Federal share of the cost of a 
     project or program funded under this subsection shall be 80 
     percent.
       [``(7) Application in indian country.--
       [``(A) Use of terms.--For the purpose of application of 
     this subsection in Indian country, the terms `State' and 
     `Governor of the State' include the Secretary of the Interior 
     and the term `political subdivisions of the State' includes 
     an Indian tribe.
       [``(B) Indian country defined.--In this subsection, the 
     term `Indian country' means--
       [``(i) all land within the limits of any Indian reservation 
     under the jurisdiction of the United States, notwithstanding 
     the issuance of any patent and including rights-of-way 
     running through the reservation;
       [``(ii) all dependent Indian communities within the borders 
     of the United States, whether within the original or 
     subsequently acquired territory thereof and whether within or 
     without the limits of a State; and
       [``(iii) all Indian allotments, the Indian titles to which 
     have not been extinguished, including rights-of-way running 
     through such allotments.''.
       [(b) The item relating to section 407 in the analysis of 
     chapter 4 of title 23, United States Code, is amended to read 
     as follows:

[``407. Federal coordination and enhanced support of emergency medical 
              services.''.

     [SEC. 2004. STATE TRAFFIC SAFETY INFORMATION SYSTEM 
                   IMPROVEMENTS.

       [(a) Chapter 4 of title 23, United States Code, is amended 
     by adding the following section:

     [``Sec. 412. State traffic safety information system 
       improvements

       [``(a) General Authority.--
       [``(1) Authority to make grants.--Subject to the 
     requirements of this section, the Secretary shall make grants 
     to States that adopt and implement effective programs to--
       [``(A) improve the timeliness, accuracy, completeness, 
     uniformity, integration and accessibility of the safety data 
     of the State that is needed to identify priorities for 
     national, State, and local highway and traffic safety 
     programs;
       [``(B) evaluate the effectiveness of efforts to make such 
     improvements;
       [``(C) link these State data systems, including traffic 
     records, with other data systems within the State, such as 
     systems that contain medical, roadway and economic data; and
       [``(D) improve the compatibility and interoperability of 
     the data systems of the State with national data systems and 
     data systems of other States and enhance the ability of the 
     Secretary to observe and analyze national trends in crash 
     occurrences, rates, outcomes, and circumstances. Recipient 
     States may use such grants only to implement such programs.
       [``(2) Model data elements.--The Secretary, in consultation 
     with States and other appropriate parties, shall determine 
     the model data elements necessary to observe and analyze 
     State and national trends in crash occurrences, rates, 
     outcomes, and circumstances. In order to become eligible for 
     a grant under this section, a State shall certify to the 
     Secretary the State's adoption and use of such model data 
     elements.
       [``(3) Maintenance of effort.--No grant may be made to a 
     State under this section in any fiscal year unless the State 
     enters into such agreements with the Secretary as the 
     Secretary may require ensuring that the State will maintain 
     its aggregate expenditures from all other sources for highway 
     safety data programs at or above the average level of such 
     expenditures in the 2 fiscal years preceding the date of 
     enactment of this Act.
       [``(4) Federal share.--The Federal share of the cost of 
     adopting and implementing in a fiscal year a program of a 
     State pursuant to paragraph (1) shall not exceed 80 percent.
       [``(b) First-Year Grants.--
       [``(1) Eligibility.--To be eligible for a first-year grant 
     under this section in a fiscal year, a State must demonstrate 
     to the satisfaction of the Secretary that the State has--

[[Page 772]]

       [``(A) established a highway safety data and traffic 
     records coordinating committee with a multidisciplinary 
     membership that includes, among others, managers, collectors, 
     and users of traffic records and public health and injury 
     control data systems; and
       [``(B) developed a multiyear highway safety data and 
     traffic records system strategic plan that addresses existing 
     deficiencies in the State's highway safety data and traffic 
     records system and is approved by the highway safety data and 
     traffic records coordinating committee and--
       [``(i) specifies how existing deficiencies in the State's 
     highway safety data and traffic records system were 
     identified;
       [``(ii) prioritizes, based on the identified highway safety 
     data and traffic records system deficiencies, the highway 
     safety data and traffic records system needs and goals of the 
     State, including the activities under subsection (a)(1);
       [``(iii) identifies performance-based measures by which 
     progress toward those goals will be determined;
       [``(iv) specifies how the grant funds and any other funds 
     of the State will be used to address needs and goals 
     identified in the multiyear plan; and
       [``(v) includes a current report on the progress in 
     implementing the multiyear plan that documents progress 
     toward the specified goals.
       [``(2) Grant amounts.--The amount of a first-year grant to 
     a State for a fiscal year shall equal an amount determined by 
     multiplying--
       [``(A) the amount appropriated to carry out this section 
     for such fiscal year; by--
       [``(B) the ratio that the funds apportioned to the State 
     under section 402 of this chapter for fiscal year 2003 bears 
     to the funds apportioned to all States under section 402 for 
     fiscal year 2003;

     except that no State eligible for a grant under this section 
     shall receive less than $300,000.
       [``(c) Succeeding-Year Grants.--
       [``(1) Eligibility.--A State shall be eligible for a grant 
     under this subsection in a fiscal year succeeding the first 
     fiscal year in which the State receives a grant under 
     subsection (b) if the State, to the satisfaction of the 
     Secretary--
       [``(A) submits an updated multiyear plan that meets the 
     requirements of subsection (b)(1)(B);
       [``(B) certifies that its highway safety data and traffic 
     records coordinating committee continues to operate and 
     supports the multiyear plan;
       [``(C) specifies how the grant funds and any other funds of 
     the State will be used to address needs and goals identified 
     in the multiyear plan;
       [``(D) demonstrates measurable progress toward achieving 
     the goals and objectives identified in the multiyear plan; 
     and
       [``(E) includes a current report on the progress in 
     implementing the multiyear plan.
       [``(2) Grant amounts.--The amount of a succeeding year 
     grant made to a State for a fiscal year under this paragraph 
     shall equal an amount determined by multiplying--
       [``(A) the amount appropriated to carry out this section 
     for such fiscal year; by
       [``(B) the ratio that the funds apportioned to the State 
     under section 402 for fiscal year 2003 bears to the funds 
     apportioned to all States under section 402 for fiscal year 
     2003; except that no State eligible for a grant under this 
     paragraph shall receive less than $500,000.
       [``(d) Administrative Expenses.--Funds authorized to be 
     appropriated to carry out this section in a fiscal year shall 
     be subject to a deduction not to exceed 5 percent for the 
     necessary costs of administering the provisions of this 
     section.
       [``(e) Applicability of Chapter 1.--The provisions 
     contained in section 402(d) shall apply to this section.''.
       [(b) The analysis of chapter 4 of title 23, United States 
     Code, is amended by inserting the following at the end:

[``412. State traffic safety information system improvements.''.

     [SEC. 2005. AUTHORIZATION OF APPROPRIATIONS.

       [(a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the National Highway Traffic Safety 
     Administration:
       [(1) Consolidated state highway safety programs.--
       [(A) To carry out the State and Community Highway Safety 
     Grant Program under section 402 of title 23, United States 
     Code, except for subsections (k) and (l), $162,000,000 for 
     fiscal year 2004, $167,000,000 for fiscal year 2005, 
     $172,000,000 for fiscal year 2006, $177,000,000 for fiscal 
     year 2007, $183,000,000 for fiscal year 2008, and 
     $189,000,000 for fiscal year 2009.
       [(B) To carry out the performance grant programs under 
     subsection (k) of section 402 of title 23, United States 
     Code, $175,000,000 for fiscal year 2004, $179,000,000 for 
     fiscal year 2005, $183,000,000 for fiscal year 2006, 
     $189,000,000 for fiscal year 2007, $195,000,000 for fiscal 
     year 2008, and $201,000,000 for fiscal year 2009.
       [(C) To carry out the impaired driving grants under 
     subsection (l) of section 402 of title 23, United States 
     Code, $50,000,000 for each of fiscal years 2004 through 2009.
       [(2) Highway safety research and development.--To carry out 
     the highway safety research and development program under 
     section 403 of title 23, United States Code, $88,452,000 for 
     fiscal year 2004, $90,000,000 for fiscal year 2005, 
     $92,000,000 for fiscal year 2006, $94,000,000 for fiscal year 
     2007, $96,000,000 for fiscal year 2008, and $99,000,000 for 
     fiscal year 2009.
       [(3) Emergency medical services grants.--To carry out 
     section 407 of title 23, United States Code, $10,000,000 for 
     each of fiscal years 2004 through 2009.
       [(4) State traffic safety information system improvements 
     grants.--To carry out section 412 of title 23, United States 
     Code, $50,000,000 for each of fiscal years 2004 through 2009.
       [(5) National driver register.--To carry out chapter 303 
     (National Driver Register) of title 49, United States Code, 
     $3,600,000 for fiscal year 2004, and $4,000,000 for each of 
     fiscal years 2005 through 2009.
       [(b) Allocations.--
       [(1) Emergency medical services activities.--Out of amounts 
     appropriated pursuant to subsection (a)(2), the Secretary may 
     use $2,226,000 in each fiscal year to carry out paragraph (4) 
     of section 403(a) of title 23, United States Code.
       [(2) International cooperation activities.--Out of amounts 
     appropriated pursuant to subsection (a)(2), the Secretary may 
     use $200,000 in each fiscal year to carry out paragraph (5) 
     of section 403(a) of title 23, United States Code.
       [(3) National motor vehicle crash causation survey.--Out of 
     the amounts appropriated pursuant to subsection (a)(2), the 
     Secretary may use $10,000,000 in each fiscal year to carry 
     out paragraph (6) of section 403(a) of title 23, United 
     States Code.
       [(c) Applicability of Title 23.--(1) Amounts made available 
     under subsection (a)(2) shall be available for obligation in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code.
       [(2) Notwithstanding section 402(d) of title 23, United 
     States Code, the funds authorized by subsection (a)(1) that 
     are apportioned or allocated in a State shall remain 
     available for obligation in that State for a period of two 
     years after the last day of the fiscal year for which the 
     funds are authorized. Any amounts so apportioned or allocated 
     that remain unobligated at the end of that period shall 
     lapse.

     [SEC. 2006. REPEAL OF OBSOLETE PROVISIONS OF TITLE 23.

       [(a) Repeal of Obsolete Provisions.--Sections 406 and 408 
     of title 23, United States Code, are repealed.
       [(b) Conforming Amendment.--The items relating to sections 
     406 and 408 in the analysis of chapter 4 of title 23, United 
     States Code, are deleted.

          [TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

     [SEC. 3001. SHORT TITLE.

       [This title may be cited as the ``Federal Public 
     Transportation Act of 2003''.

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

       [(a) Updated Terminology.--Chapter 53 of title 49, United 
     States Code, including the chapter analysis, is amended by 
     striking ``mass'' each place it appears before 
     ``transportation'' and inserting ``public'', except in 
     sections 5301(f), 5302(a)(7), 5315, 5323(a)(1), and 
     5323(a)(1)(B).
       [(b) 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.

     [SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

       [(a) In General.--Section 5301(a) is amended to read as 
     follows:
       [``(a) Development and Revitalization of Public 
     Transportation Systems.--It is in the 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 and reliance on foreign 
     oil.''.
       [(b) Preserving the Environment.--Section 5301(e) is 
     amended by--
       [(1) striking ``an urban'' and inserting ``a''; and
       [(2) striking ``under sections 5309 and 5310 of this 
     title''.
       [(c) General Purposes.--Section 5301(f) is amended--
       [(1) in paragraph (1) by--
       [(A) striking ``mass'' after ``improved'' and inserting 
     ``public''; and
       [(B) striking ``public and private mass transportation 
     companies and inserting ``both public transportation 
     companies and private companies engaged in public 
     transportation'';
       [(2) in paragraphs (2) and (3) by--
       [(A) striking ``urban mass'' after ``areawide'' and 
     inserting ``public'', and
       [(B) striking ``public and private mass transportation 
     companies'' and inserting ``both public transportation 
     companies and

[[Page 773]]

     private companies engaged in public transportation''; and
       [(3) in paragraph (5), by striking ``urban mass'' and 
     inserting ``public''.

     [SEC. 3004. DEFINITIONS.

       [(a) In General.--Section 5302 is amended to read as 
     follows:

     [``Sec. 5302. Definitions

       [``(a) In General.--In this chapter, the following 
     definitions apply:
       [``(1) `access to jobs project' means a project relating to 
     the development and maintenance of transportation services 
     designed to transport welfare recipients and low-income 
     individuals to and from jobs and activities related to their 
     employment, including--
       [``(A) transportation projects to finance planning, capital 
     and operating costs of providing access to jobs under this 
     chapter;
       [``(B) promoting public transportation by low-income 
     workers;
       [``(C) promoting the use of transit vouchers for welfare 
     recipients and low-income individuals; and
       [``(D) promoting the use of employer-provided 
     transportation, including the transit pass benefit program 
     under section 132 of the Internal Revenue Code of 1986.
       [``(1a) `capital project' means a project for--
       [``(A) acquiring, constructing, supervising, or inspecting 
     equipment or a facility for use in public transportation, 
     expenses incidental to the acquisition or construction 
     (including designing, engineering, location surveying, 
     mapping, and acquiring rights-of-way), payments for the 
     capital portions of rail trackage rights agreements, transit-
     related intelligent transportation systems, relocation 
     assistance, acquiring replacement housing sites, and 
     acquiring, constructing, relocating, and rehabilitating 
     replacement housing;
       [``(B) rehabilitating a bus;
       [``(C) remanufacturing a bus;
       [``(D) overhauling rail rolling stock;
       [``(E) preventive maintenance;
       [``(F) leasing equipment or a facility for use in public 
     transportation, subject to regulations that the Secretary 
     prescribes limiting the leasing arrangements to those that 
     are more cost-effective than purchase or construction;
       [``(G) a public transportation improvement that enhances 
     economic development or incorporates private investment, 
     including commercial and residential development, pedestrian 
     and bicycle access to a public transportation facility, and 
     the renovation and improvement of historic transportation 
     facilities, because the improvement enhances the 
     effectiveness of a public transportation project and is 
     related physically or functionally to that public 
     transportation project, or establishes new or enhanced 
     coordination between public transportation and other 
     transportation, and provides a fair share of revenue for 
     public transportation that will be used for public 
     transportation--
       [``(i) including property acquisition, demolition of 
     existing structures, site preparation, utilities, building 
     foundations, walkways, open space, safety and security 
     equipment and facilities (including lighting, surveillance 
     and related intelligent transportation system applications), 
     facilities that incorporate community services such as 
     daycare or health care, and a capital project for, and 
     improving, equipment or a facility for an intermodal transfer 
     facility or transportation mall, except that a person making 
     an agreement to occupy space in a facility under this 
     subparagraph shall pay a reasonable share of the costs of the 
     facility through rental payments and other means; and
       [``(ii) excluding construction of a commercial revenue-
     producing facility or a part of a public facility not related 
     to public transportation; and
       [``(H) the introduction of new technology, through 
     innovative or improved products, into public transportation;
       [``(I) the provision of nonfixed route paratransit 
     transportation services in accordance with section 223 of the 
     Americans with Disabilities Act of 1990, but only for grant 
     recipients that are in compliance with applicable 
     requirements of that Act, including both fixed route and 
     demand responsive service, and only for amounts not to exceed 
     10 percent of such recipient's annual formula apportionment 
     under sections 5307 and 5311;
       [``(J) crime prevention and security--
       [``(i) including--

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

       [``(ii) excluding all expenses related to operations, 
     except for such expenses incurred in the provisions of 
     activities under clauses (III) and (IV) of this subparagraph; 
     or
       [``(K) establishment of a debt service reserve made up of 
     deposits with a bondholders' trustee in a non-interest 
     bearing account for the purpose of assuring timely payment of 
     principal and interest on bonds issued by a grant recipient 
     for purposes of financing an eligible project under this 
     chapter; and
       [``(L) remediation associated with construction of a 
     capital project as described this paragraph on a brownfield 
     site as defined in 42 U.S.C. 9601.
       [``(2) `chief executive officer of a State' includes the 
     designee of the chief executive officer.
       [``(3) `emergency regulation' means a regulation--
       [``(A) that is effective temporarily before the expiration 
     of the otherwise specified periods of time for public notice 
     and comment under section 5334(c); and
       [``(B) prescribed by the Secretary as the result of a 
     finding that a delay in the effective date of the 
     regulation--
       [``(i) would injure seriously an important public interest;
       [``(ii) would frustrate substantially legislative policy 
     and intent; or
       [``(iii) would damage seriously a person or class without 
     serving an important public interest.
       [``(4) `fixed guideway' means a public transportation 
     facility--
       [``(A) using and occupying a separate right-of-way or rail 
     for the exclusive use of public transportation and other high 
     occupancy vehicles; or -
       [``(B) using a fixed catenary system and a right-of-way 
     usable by other forms of transportation.
       [``(5) `individual with a disability' means an individual 
     who, because of illness, injury, age, congenital malfunction, 
     or other incapacity or temporary or permanent disability 
     (including an individual who is a wheelchair user or has 
     semiambulatory capability), cannot use effectively, without 
     special facilities, planning, or design, public 
     transportation service or a public transportation facility.
       [``(6) `local governmental authority' includes--
       [``(A) a political subdivision of a State;
       [``(B) an authority of at least 1 State or political 
     subdivision of a State;
       [``(C) an Indian tribe; and
       [``(D) a public corporation, board, or commission 
     established under the laws of a State.
       [ ``(7) `mass transportation' means public transportation.
       [``(7a) `mobility management' means an activity or project 
     that involves one or more of the following goals:
       [``(A) Addressing public transportation customer needs.
       [``(B) Tailoring public transportation services to specific 
     market niches.
       [``(C) Managing public transportation demand.
       [``(D) Land use compatibility with public transportation 
     services.
       [``(E) Improving coordination among public transportation 
     providers and other transportation service providers.
       [``(8) `net project cost' means the part of a project that 
     reasonably cannot be financed from revenues.
       [``(9) `new bus model' means a bus model (including a model 
     using alternative fuel)--
       [``(A) that has not been used in public transportation in 
     the United States before the date of production of the model; 
     or
       [``(B) used in public transportation in the United States, 
     but being produced with a major change in configuration or 
     components.
       [``(10) `public transportation' means transportation by a 
     conveyance that provides regular and continuing general or 
     special transportation to the public, but does not include 
     school bus, charter, or sightseeing transportation.
       [``(10a) `recipient' means an entity that receives Federal 
     transit program assistance directly from the Federal 
     government.
       [``(11) `regulation' means any part of a statement of 
     general or particular applicability of the Secretary designed 
     to carry out, interpret, or prescribe law or policy in 
     carrying out this chapter.
       [``(11a) `reverse commute project' means a public 
     transportation project designed to transport residents of 
     urban areas, urbanized areas, and areas other than urbanized 
     areas to suburban employment opportunities, including any 
     projects to--
       [``(A) subsidize the costs associated with adding reverse 
     commute bus, train, carpool, van routes, or service from 
     urban areas, urbanized areas, and areas other than urbanized 
     areas, to suburban workplaces;
       [``(B) subsidize the purchase or lease by a nonprofit 
     organization or public agency of a van or bus dedicated to 
     shuttling employees from their residences to a suburban 
     workplace; or
       [``(C) otherwise facilitate the provision of public 
     transportation services to suburban employment opportunities.
       [``(12) `Secretary' means the Secretary of Transportation.
       [``(13) `State' means a State of the United States, the 
     District of Columbia, Puerto Rico, the Northern Mariana 
     Islands, Guam, American Samoa, and the Virgin Islands, except 
     as defined in section 5305 of this title.
       [``(13a) `subrecipient' means an entity that receives 
     Federal transit program assistance indirectly through a 
     recipient, rather than directly from the Federal government.
       [``(14) `transit' means public transportation.
       [``(15) `transit enhancement' means, with respect to any 
     project or an area to be served

[[Page 774]]

     by a project, projects that are designed to enhance public 
     transportation service or use and that are physically or 
     functionally related to transit facilities. Eligible projects 
     are--
       [``(A) historic preservation, rehabilitation, or operation 
     of historic public transportation buildings, structures, or 
     facilities (including historic bus or railroad facilities);
       [``(B) bus shelters;
       [``(C) landscaping and other scenic beautification, 
     including tables, benches, trash receptacles, and street 
     lights;
       [``(D) public art;
       [``(E) pedestrian access or walkways;
       [``(F) bicycle access, including bicycle storage facilities 
     and installing equipment for transporting bicycles on public 
     transportation vehicles;
       [``(G) transit connections to parks within the recipient's 
     transit service area;
       [``(H) signage; and
       [``(I) enhanced access for individuals with disabilities to 
     public transportation.
       [``(16) [reserved]
       [``(17) `urbanized area' means an area encompassing a 
     population of at least 50,000 people that has been defined 
     and designated in the latest decennial census as an 
     `urbanized area' by the Secretary of Commerce.
       [``(18) `welfare recipient' means an individual who 
     receives or received aid or assistance under a State or 
     tribal program funded under part A of title IV of the Social 
     Security Act (whether in effect before or after the effective 
     date of the amendments made by title I of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (Public Law 104-193; 110 Stat. 2110)) at any time during 
     the 3-year period before the date on which the applicant 
     applies for a grant under this section.
       [``(b) Authority To Modify `Individual With a 
     Disability'.--The Secretary may by regulation modify the 
     definition of the term `individual with a disability' in 
     subsection (a)(5) as it applies to section 5307(d)(1)(D).''.
       [(b) Conforming Amendment.--Section 5321 is repealed.

     [SEC. 3005. METROPOLITAN PLANNING.

       [The text of section 5303 is amended to read as follows: 
     ``Grants made under sections 5307, 5308, 5309, 5310, 5311, 
     5316, and 5317 shall be carried out in accordance with the 
     metropolitan planning provisions of chapter 52 of this 
     title.''.

     [SEC. 3006. STATEWIDE PLANNING.

       [(a) Section Heading.--Section 5304 is amended by striking 
     the section heading and inserting the following:

     [``Sec. 5304. Statewide planning''.

       [(b) The text of section 5304 is amended to read as 
     follows: ``Grants made under sections 5307, 5308, 5309, 5310, 
     5311, 5316, and 5317 shall be carried out in accordance with 
     the statewide planning provisions of chapter 52 of this 
     title.''.
       [(c) Conforming Amendment.--The item relating to section 
     5304 in the table of sections for chapter 53 is amended to 
     read as follows:

[``5304. Statewide planning.''.

     [SEC. 3007. PLANNING PROGRAMS.

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

     [``Sec. 5305. Planning programs

       [``(a) Definitions.--In this section the following 
     definitions apply:
       [``(1) `State' means a State of the United States, the 
     District of Columbia, and Puerto Rico, and
       [``(2) `planning emphasis area' means priority themes 
     identified by the Secretary for consideration in sections 
     5303 and 5304 of this title.
       [``(b) General Authority.--Under criteria the Secretary 
     establishes, the Secretary may make grants to States, 
     authorities of the States, metropolitan planning 
     organizations, and local governmental authorities, or may 
     make agreements with other departments, agencies, and 
     instrumentalities of the Government, or may enter into 
     contracts with private non-profit or for-profit entities for 
     development of, transportation plans and programs and to 
     plan, engineer, design, and evaluate a public transportation 
     project and for other technical studies, including--
       [``(1) studies related to management, planning, operations, 
     capital requirements, and economic feasibility;
       [``(2) evaluating previously financed projects;
       [``(3) 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,
       [ ``(4) other similar and related activities preliminary to 
     and in preparation for constructing, acquiring, or improving 
     the operation of facilities and equipment.
       [``(c) Purpose.--To the extent practicable, the Secretary 
     shall ensure that amounts appropriated or made available 
     under section 5338 of this title to carry out this section 
     and sections 5303 and 5304 of this title are used to support 
     balanced and comprehensive transportation planning that 
     considers the relationships among land use and all 
     transportation modes, without regard to the programmatic 
     source of the planning amounts.
       [``(d) Metropolitan Planning Program.--
       [``(1) The Secretary shall apportion 80 percent of the 
     amount made available under subsection (h)(2)(A) of this 
     section to States to carry out sections 5303 and 5306 of this 
     title 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. A State may not receive less 
     than .5 percent of the amount apportioned under this 
     paragraph.
       [``(2) Amounts apportioned to a State under paragraph (1) 
     of this subsection shall be made available promptly after 
     allocation to metropolitan planning organizations in the 
     State designated under this section under a formula--
       [``(A) the State develops in cooperation with the 
     metropolitan planning organizations;
       [``(B) the Secretary of Transportation approves; and
       [``(C) that considers population in urbanized areas and 
     provides an appropriate distribution for urbanized areas to 
     carry out the cooperative processes described in this 
     section.
       [``(3) The Secretary shall apportion 20 percent of the 
     amount made available under subsection (h)(2)(A) of this 
     section to States to supplement allocations made under 
     paragraph (1) of this subsection for metropolitan planning 
     organizations. Amounts under this paragraph shall be 
     allocated under a formula that reflects the additional cost 
     of carrying out planning, programming, and project selection 
     responsibilities under sections 5303 and 5306 of this title 
     in complex metropolitan planning areas.
       [``(e) State Planning and Research Program.--
       [``(1) The amounts made available pursuant to subsection 
     (h)(2)(B) of this section shall be apportioned to States for 
     grants and contracts to carry out sections 5303-5306, 5315, 
     and 5322 of this title. The amounts shall be apportioned so 
     that each State receives an amount equal to the population in 
     urbanized areas in the State, divided by the population in 
     urbanized areas in all States, as shown by the latest 
     available decennial census. However, a State must receive at 
     least .5 percent of the amount apportioned under this 
     subsection.
       [``(2) A State, as the State considers appropriate, may 
     authorize part of the amount made available under this 
     subsection to be used to supplement amounts available under 
     subsection (d) of this section.
       [``(f) Planning Capacity Building Program.--
       [``(1) The Secretary shall establish a Planning Capacity 
     Building Program to support and fund innovative practices and 
     enhancements in transportation planning. The purpose of this 
     program shall be to promote activities that support and 
     strengthen the planning processes required under this section 
     and sections 5303 and 5304 of this chapter.
       [``(2) Funding available under subsection (h)(1) of this 
     section to carry out this subsection will support--
       [``(A) incentive grants to state, metropolitan planning 
     organizations, and public transportation operators; and
       [``(B) research, information dissemination, and technical 
     assistance.
       [``(3) The Secretary may use the funds for the purpose 
     described in paragraph (2)(B) independently or make 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, to carry 
     out the purposes of this subsection.
       [``(4) The program shall be administered by the Federal 
     Transit Administration in cooperation with the Federal 
     Highway Administration.
       [``(g) Government's Share of Costs.--
       [``(1) Amounts made available to carry out subsections (d), 
     (e) and (f) of this section may not exceed 80 percent of the 
     costs of the activity unless the Secretary of Transportation 
     decides it is in the interests of the Government not to 
     require a State or local match.
       [``(2) When there are planning emphasis areas funded under 
     a grant or contract financed under this section, the 
     Secretary may establish a Government share consistent with 
     the planning emphasis area benefit.
       [``(h) Allocation of Funds.--Of the funds made available by 
     or appropriated to carry out this section under section 
     5338(a)(2)(A) and (B) and 5338(b)(3)(A) and (B) of this title 
     for fiscal years 2004 through 2009,
       [``(1) $5,000,000 shall be available for the planning 
     capacity building program under subsection (f) of this 
     section; and
       [``(2) of the remaining amount,
       [``(A) 82.72 percent shall be available for metropolitan 
     planning program under subsection (d) of this section; and
       [``(B) 17.28 percent shall be available to carry out 
     subsections (b) and (e) of this section.
       [``(i) Availability of Amounts.--An amount apportioned 
     under this section that remains available for 3 years after 
     the fiscal year in which the amount is apportioned shall be 
     reapportioned among the States.''.

[[Page 775]]

       [(b) Conforming Amendment.--The item relating to section 
     5305 in the table of sections for chapter 53 is amended to 
     read as follows:

[``5305.  Planning programs.''.

     [SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

       [(a) Section Heading.--Section 5306 is amended by striking 
     the section heading and inserting the following:

     [``Sec. 5306.  Private enterprise participation in 
       metropolitan planning and statewide planning''.

       [(b) Conforming Amendment.--The item relating to section 
     5306 in the table of sections for chapter 53 is amended to 
     read as follows:

[``5306.  Private enterprise participation in metropolitan planning and 
              statewide planning.''.

     [SEC. 3009. URBANIZED AREA PUBLIC TRANSPORTATION FORMULA 
                   GRANTS PROGRAM.

       [(a) Section Heading.--Section 5307 is amended by striking 
     the section heading and inserting the following:

     [``Sec. 5307.  Urbanized area public transportation 
       formula grants program''.

       [(b) Technical Amendments.--Section 5307 is amended by--
       [(1) striking subsections (h), (j) and (k); and
       [(2) redesignating subsections (i), (l), (m), and (n) as 
     subsections (h), (i), (j), and (k), respectively.
       [(c) Definitions.--Section 5307(a) is amended to read as 
     follows:
       [``(a) Definitions.--In this section:
       [``(1) `designated recipient' means--
       [``(A) an entity designated, consistent with the planning 
     process under sections 5303-5306 of this title, 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 of 
     this title that are attributable to transportation management 
     areas established under section 5303 of this title; or
       [``(B) a State or regional authority if the authority is 
     responsible under the laws of a State for a capital project 
     and for financing and directly providing public 
     transportation.
       [``(2) `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.''.
       [(d) General Authority.--Section 5307(b) is amended--
       [(1) by striking paragraph (1) and inserting a new 
     paragraph (1) as follows:
       [``(1) The Secretary of Transportation may make grants 
     under this section for--
       [``(A) capital projects;
       [``(B) planning and mobility management;
       [``(C) transit enhancements; and
       [``(D) operating costs of equipment and facilities for use 
     in public transportation in an urbanized area with a 
     population of less than 200,000.'';
       [(2) by striking paragraphs (2) and (4);
       [(3) by redesignating paragraph (3) as paragraph (2); and
       [(4) in redesignated paragraph (2), by striking ``5305(a)'' 
     and inserting ``5303''.
       [(e) Grant Recipient Requirements.--Section 5307(d) is 
     amended--
       [(1) in paragraph (1)(A), by inserting ``, including safety 
     and security aspects of the program'' after ``capacity'';
       [(2) in paragraph (1)(E), by striking everything that 
     appears after ``section'' and inserting ``the recipient will 
     comply with section 5323 and 5325 of this title'';
       [(3) in paragraph (1)(H), by striking ``5310(a)-(d)'';
       [(4) by striking paragraph (1)(I);
       [(5) by redesignating paragraph (1)(J) as paragraph (1)(I); 
     and
       [(6) by adding at the end of subsection (f)(1), as 
     redesignated, the following:
       [``(J) with a population of at least 200,000 in its 
     urbanized area will expend one percent of the amount the 
     recipient receives each fiscal year under this section for 
     transit enhancement activities described in section 
     5302(a)(15) of this title.''.
       [(f) Government's Share of Costs.--Section 5307(e), is 
     amended--
       [(1) in the first sentence, by striking ``(including 
     associated capital maintenance items)''; and
       [(2) in the fourth sentence, by striking ``that are more 
     than the amount of those revenues in the fiscal year that 
     ended September 30, 1985'' and inserting ``and amounts 
     received under a service agreement with a State or local 
     social service agency or a private social service 
     organization''.
       [(g) Undertaking Projects in Advance.--Section 5307(g) is 
     amended by striking paragraph (4).
       [(h) Reviews, Audits, and Evaluations.--Section 5307(h), as 
     redesignated, is amended in paragraph (1) (A) by striking 
     ``shall'' and inserting ``may''.
       [(i) Relationship to Other Laws.--Section 5307(k), as 
     redesignated, is amended to read as follows:
       [``(k)(1) Sections 5301, 5302, 5303, 5304, 5306, 5315(c), 
     5318, 5319, 5323, 5325, 5327, 5329, 5330, 5331, 5332, 5333 
     and 5335'' of this title apply to this section and to a grant 
     made under this section. Except as provided in this section, 
     no other provision of this chapter applies to this section or 
     to a grant made under this section.
       [``(2) The provision of assistance under this chapter shall 
     not be construed as bringing within the application of 
     chapter 15, title 5, U.S.C., any nonsupervisory employee of a 
     public transportation system (or any other agency or entity 
     performing related functions) to which such chapter is 
     otherwise inapplicable.''.
       [(j) Conforming Amendments.--
       [(1) The item relating to section 5307 in the table of 
     sections for chapter 53 is amended to read as follows:

[``5307. Urbanized area public transportation formula grants 
              program.''.
       [(2) Section 3037 of the Transportation Equity Act for the 
     21st Century, Public Law 105-178, as amended, is repealed.

     [SEC. 3010. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

       [(a) Definitions.--Section 5311(a) is amended to read as 
     follows:--
       [``(a) Definitions.--In this section--
       [``(1) `recipient' means a State that receives a Federal 
     transit program grant directly from the Federal government.
       [``(2) `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.''.
       [(b) General Authority.--Section 5311(b) is amended--
       [(1) by revising paragraph (1) to read as follows:
       [``(1) Except as provided in paragraph (2) of this 
     subsection, the Secretary may make grants to areas other than 
     urbanized areas under this section for the following:
       [``(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) and 
     inserting a new paragraph (2), as follows:
       [``(2) 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. The 
     program shall be submitted annually to the Secretary. The 
     Secretary may approve the program only if the Secretary finds 
     that the program provides a fair distribution of amounts in 
     the State, including Indian reservations, and the maximum 
     feasible coordination of public transportation service 
     assisted under this section with transportation service 
     assisted by other federal sources.'';
       [(3) In paragraph (3), as redesignated, by inserting ``use 
     not more than 2 percent of the amount made available to carry 
     out this section to'' before ``make''; and
       [(4) by adding after paragraph (3) the following:
       [``(4) Of the amount available to carry out paragraph (3), 
     not more than 15 percent may be used to carry out projects of 
     a national scope, with the remaining balance provided to the 
     States.''.
       [(c) Apportioning Amounts.--Subsection (c) is amended to 
     read as follows:
       [``(c) Apportionments.--
       [``(1) The amounts made available under section 
     5338(a)(2)(K) shall be apportioned as follows:
       [``(A) For each eligible State in accordance with paragraph 
     (2) of this subsection:
       [``(i) $2,500,000 in fiscal year 2004.
       [``(ii) Three percent in fiscal year 2005.
       [``(iii) Five percent in fiscal year 2006.
       [``(iv) Seven percent in fiscal year 2007.
       [``(v) Nine percent in fiscal year 2008.
       [``(vi) Ten percent in every fiscal year thereafter.
       [``(B) Remaining amounts shall be apportioned to each State 
     in accordance with paragraph (3) of this subsection.
       [``(2)(A) Of the amounts to be apportioned under paragraph 
     (1)(A) of this subsection, the Secretary may use the 
     following amounts to make grants to establish data collection 
     systems capable of collecting the data in subparagraph (C) of 
     this paragraph:
       [``(i) 100 percent in fiscal year 2004.
       [``(ii) $1,500,000 in fiscal year 2005.
       [``(iii) $500,000 in fiscal year 2006.
       [``(B) Amounts under subparagraph (A) of this paragraph not 
     obligated within three years following the end of the fiscal 
     year in which those amounts became available shall be 
     available for apportionment under subparagraph (C) of this 
     paragraph.
       [``(C) The remaining amounts to be apportioned under 
     paragraph (1)(A) of this subsection shall be apportioned by a 
     formula determined by the Secretary that distributes funds 
     based on increases in public transportation patronage in 
     other-than-urbanized areas.
       [``(D) In apportioning funds under subparagraph (C) of this 
     paragraph, the Secretary may consider the efficiency of 
     service provision in the non-urbanized areas in the State.
       [``(3) Each State shall receive an amount equal to the 
     remaining amount apportioned multiplied by a ratio equal to 
     the population of areas other than urbanized areas in a

[[Page 776]]

     State divided by the population of all areas other than 
     urbanized areas in the United States, as shown by the most 
     recent Federal government decennial census of population.''.
       [(d) Use for Administrative, Planning, and Technical 
     Assistance.--Section 5311(e) is amended by striking--
       [(1) ``Use for administration and technical assistance. 
     (1)'' and inserting ``Use for administration, planning, and 
     technical assistance.''; and
       [(2) ``to a recipient'' after ``technical assistance''; and
       [(3) paragraph (2).
       [(e) Intercity Bus Transportation.--Section 5311(f) is 
     amended--
       [(1) in paragraph (1), by striking ``after September 30, 
     1993,''; and
       [(2) by inserting at the beginning of paragraph (2) ``After 
     consultation with affected intercity bus service 
     providers,''.
       [(f) Government's Share of Costs.--Section 5311(g) is 
     amended to read as follows:
       [``(g) Government's Share of Costs.--
       [``(1) 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. 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. The remainder--
       [``(A) may be provided from an undistributed cash surplus, 
     a replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       [``(B) may be derived from amounts appropriated to or made 
     available to a department or agency of the Federal government 
     (other than the Department of Transportation, except for 
     Federal Land Highway funds) that are eligible to be expended 
     for transportation.
       [``(2) A state carrying out a program of operating 
     assistance under this section may not limit the level or 
     extent of use of the Government grant for the payment of 
     operating expenses.
       [``(3) For purposes of paragraph (2)(B) of this section, 
     the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(c)(vii) of the Social 
     Security Act shall not apply to federal or state funds to be 
     used for transportation purposes.''.
       [(g) Indian Reservation Rural Transit Program.--Section 
     5311(h) is amended to read as follows:
       [``(h) Indian Reservation Rural Transit Program.--
       [``(1) In this subsection, the term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       [``(2)(A) The Secretary shall establish and carry out 
     through the States a program to provide grants to Indian 
     tribes to operate, maintain, and establish rural transit 
     programs on reservations or other land under the jurisdiction 
     of the Indian tribes.
       [``(B) The state may waive or reduce the amount of local 
     share required for these grants.
       [``(3) Notwithstanding any other provision of law, for each 
     fiscal year, of the amount made available to carry out this 
     section under section 5338(a)(2)(K) for the fiscal year, the 
     Secretary shall make available $10,000,000 to carry out this 
     subsection.
       [``(4) Of the funds made available pursuant to paragraph 
     (3) of this subsection,
       [``(A) $9,500,000 shall be apportioned to the states based 
     on a ratio equal to the tribal population in each state 
     divided by the total tribal population in all states, as 
     shown by the latest decennial census of population for 
     allocation to existing Indian tribal rural transit programs 
     and to plan and establish new Indian tribe rural transit 
     programs;
       [``(B) prior to distribution by states of in-state amounts 
     to Indian tribes, each State may use up to 5 percent for 
     state administration;
       [``(C) amounts apportioned to a state under paragraph (A) 
     of this subsection shall be distributed to Indian tribes in 
     the state based on an allocation plan--
       [``(i) the state develops in cooperation with Indian 
     tribes;
       [``(ii) the Secretary approves; and
       [``(iii) that provides an appropriate distribution for 
     funding the needs of existing and new Indian Reservation 
     Rural Transit Systems; and
       [``(D) $500,000 shall be available to the Secretary to 
     provide technical assistance, including best practices and 
     outreach, to the states and tribes through grants, contracts, 
     or other arrangements and shall be in addition to and not in 
     lieu of other funds available for these purposes.
       [``(5) An amount apportioned to the states under this 
     subsection--
       [``(A) remains available for 3 years after the fiscal year 
     in which the amount was apportioned; and
       [``(B) shall be reapportioned among the states if 
     unobligated at the end of the 3-year period.''.
       [(h) Relationship to Other Laws.--Section 5311(j) is 
     amended to read as follows:
       [``(j) Relationship to Other Laws.--
       [``(1) Except as provided in subparagraphs (2) and (3) of 
     this subsection, a grant under this section is subject to the 
     requirements of 5307 to the extent the Secretary considers 
     appropriate.
       [``(2) Sections 5323(a)(1)(D) and 5333(b) of this title 
     shall apply, provided that the Secretary of Labor shall 
     utilize a Special Warranty that provides a fair and equitable 
     arrangement to protect the interest of employees.
       [``(3) The Secretary may waive the applicability of the 
     Special Warranty under paragraph (2) for private non-profit 
     subrecipients on a case-by-case basis as the Secretary deems 
     appropriate.
       [``(4) This subsection does not affect or discharge a 
     responsibility of the Secretary under a law of the United 
     States.''.

     [SEC. 3011. NEW FREEDOM PROGRAM.

       [(a) Chapter 53 of title 49, United States Code, is amended 
     by inserting after section 5316 the following:

     [``Sec. 5317. New Freedom program

       [``(a) Definitions.--In this section--
       [``(1) `recipient' means a State that receives a grant 
     under this section directly.
       [``(2) `subrecipient' means a State or local governmental 
     authority, a nonprofit organization, or a private operator of 
     public transportation service that may receive a grant under 
     this section indirectly through a recipient, rather than 
     directly from the Federal government.''.
       [``(b) General Authority.--
       [``(1) The Secretary of Transportation may provide grants 
     to recipients for new transportation services and 
     transportation alternatives beyond those required by the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
     seq.), including motor vehicle programs that assist persons 
     with disabilities with transportation to and from jobs and 
     employment support services.
       [``(2) A recipient may use not more than 15 percent of the 
     amounts apportioned under this section to administer, plan, 
     and provide technical assistance for a project funded under 
     this section.
       [``(c) Apportionments.--
       [``(1) The Secretary shall apportion amounts made available 
     under section 5338(a)(2)(H) of this title under a formula the 
     Secretary administers.
       [``(2) The recipient may transfer any funds apportioned to 
     it under this subsection to sections 5311(c) or 5336. Any 
     funds transferred pursuant to this subsection shall be made 
     available only for eligible projects selected under this 
     section.
       [``(d) Grant Requirements.--
       [``(1) Except as provided in paragraphs (2) and (3) of this 
     subsection, a grant under this section is subject to the 
     requirements of 5307 to the extent the Secretary considers 
     appropriate.
       [``(2) Section 5333(b) of this title shall apply, provided 
     that the Secretary of Labor shall utilize a Special Warranty 
     that provides a fair and equitable arrangement to protect the 
     interest of employees.
       [``(3) The Secretary may waive the applicability of the 
     Special Warranty under paragraph (2) for private non-profit 
     subrecipients on a case-by-case basis as the Secretary deems 
     appropriate.
       [``(4) A recipient of a grant under this section shall 
     certify that allocations of the grant to subrecipients are 
     distributed on a fair and equitable basis.
       [``(e) Competitive Process.--
       [``(1) The recipient shall conduct a statewide solicitation 
     for applications for grants under this section.
       [``(2) Subrecipients seeking to receive a grant under this 
     section shall submit to the recipient an application in the 
     form and in accordance with such requirements as the 
     recipient shall establish.
       [``(3) Subrecipients submitting applications pursuant to 
     paragraph (2) shall be selected on a competitive basis.
       [``(f) Coordination.--
       [``(1) The Secretary shall coordinate activities under this 
     section with related activities under programs of other 
     Federal departments and agencies.
       [``(2) A recipient that transfers funds to section 5336 
     pursuant to subsection (c)(2) shall certify that the project 
     for which the funds are requested has been coordinated with 
     private non-profit providers of services under this section.
       [``(3) A recipient of funds under this section shall 
     certify that--
       [``(A) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       [``(B) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public;
       [``(g) Government's Share of Costs.--
       [``(1) 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. 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. The remainder may be--
       [``(A) provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and

[[Page 777]]

       [``(B) derived from amounts appropriated to or made 
     available to a department or agency of the Federal government 
     (other than the Department of Transportation, except for 
     Federal Land Highway funds) that are eligible to be expended 
     for transportation.
       [``(2) A recipient carrying out a program of operating 
     assistance under this section may not limit the level or 
     extent of use of the Government grant for the payment of 
     operating expenses.
       [``(3) For purposes of paragraph (1)(B) of this section, 
     the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(c)(vii) of the Social 
     Security Act shall not apply to federal or state funds to be 
     used for transportation purposes.''.
       [(b) Conforming Amendment.--The table of sections for 
     chapter 53 is amended after the item relating to section 5316 
     by adding the following:

[``5317. New Freedom program.''.

     [SEC. 3012. MAJOR CAPITAL INVESTMENT PROGRAM.

       [(a) Major Capital Investment Program.--Section 5309 is 
     amended to reads as follows:

     [``Sec. 5309. Major capital investment grants

       [``(a) General Authority.--
       [``(1) The Secretary of Transportation may make grants 
     under this section to State and local governmental 
     authorities to assist them and their subrecipients in 
     financing capital projects for--
       [``(A) new fixed guideway systems, extensions to existing 
     fixed guideway systems, and related project activities;
       [``(B) the capital costs of coordinating public 
     transportation with other transportation;
       [``(C) the introduction of new technology, through 
     innovative or improved products, into public transportation; 
     or
       [``(D) the development of corridors to support public 
     transportation, including protecting rights of way through 
     acquisition, construction of dedicated bus and high occupancy 
     vehicle lanes or park and ride lots, or other capital 
     improvements that the Secretary may decide would result in 
     increased public transportation usage in the corridor.
       [``(2) The Secretary shall require that a grant under this 
     subsection be subject to the terms, conditions, requirements, 
     and provisions the Secretary decides are necessary or 
     appropriate for the purposes of this section, including 
     requirements for the disposition of net increases in value of 
     real property resulting from the project assisted under this 
     section.
       [``(b) Project as Part of Approved Program of Projects.--
       [``(1) The Secretary may not approve a grant for a project 
     under this section unless the Secretary finds that the 
     project is part of an approved transportation plan and 
     program of projects required under sections 5303-5306 of this 
     title, and that the applicant has or will have the legal, 
     financial, and technical capacity to carry out the project 
     (including safety and security aspects of the project), 
     satisfactory continuing control over the use of the equipment 
     or facilities, and the capability and willingness to maintain 
     the equipment or facilities.
       [``(2) An applicant that has submitted a certification 
     required by section 5307(d)(1) (A)-(C) and (H) of this title 
     shall provide sufficient information upon which the Secretary 
     can make the findings required by this subsection.
       [``(c) Criteria for Major Capital Investment Grants of 
     $75,000,000 or More.--
       [``(1) A project financed under this subsection shall be 
     carried out through a full funding grant agreement. The 
     Secretary shall enter into a full funding grant agreement 
     based on the evaluations and ratings required under this 
     subsection. The Secretary shall not enter into a full funding 
     grant agreement for a project unless that project is 
     authorized for final design and construction and has been 
     rated as `medium,' `medium-high,' or `high,' as defined in 
     this subsection.
       [``(2) The Secretary may approve a grant under this section 
     for a major capital project only if the Secretary makes the 
     following determinations, based upon evaluations and 
     considerations as set forth below:
       [``(A) The Secretary may approve a grant under this section 
     for a major capital project only if the Secretary determines 
     that the proposed project is--
       [``(i) based on the results of an alternatives analysis and 
     preliminary engineering;
       [``(ii) justified based on a comprehensive review of its 
     mobility improvements, environmental benefits, cost 
     effectiveness, operating efficiencies, transit supportive 
     policies and existing land use; and
       [``(iii) 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.
       [``(B) Before making the determinations required by 
     paragraph (2)(A), the Secretary shall first analyze, 
     evaluate, and consider the following factors:
       [``(i) In evaluating a project for purposes of making the 
     finding required by paragraph (2)(A)(i), the Secretary shall 
     analyze and consider the results of the alternatives analysis 
     and preliminary engineering for the project.
       [``(ii) In evaluating a project for purposes of making the 
     finding required by paragraph (2)(A)(ii), the Secretary 
     shall--

       [``(I) consider the direct and indirect costs of relevant 
     alternatives;
       [``(II) consider factors such as congestion relief, 
     improved mobility, air pollution, noise pollution, energy 
     consumption, and all associated ancillary and mitigation 
     costs necessary to carry out each alternative analyzed, and 
     recognize reductions in local infrastructure costs achieved 
     through compact land use development;
       [``(III) identify and consider public transportation 
     supportive existing land use policies and future patterns, 
     and the cost of suburban sprawl;
       [``(IV) consider the degree to which the project increases 
     the mobility of the public transportation dependent 
     population or promotes economic development;
       [``(V) consider population density and current transit 
     ridership in the corridor;
       [``(VI) consider the technical capability of the grant 
     recipient to construct the project;
       [``(VII) adjust the project justification to reflect 
     differences in local land, construction, and operating costs; 
     and
       [``(VIII) consider other factors that the Secretary 
     determines appropriate to carry out this chapter.

       [``(iii) In evaluating a project under paragraph 
     (2)(A)(iii), the Secretary shall require that--

       [``(I) the proposed project plan provides for the 
     availability of contingency amounts that the Secretary 
     determines to be reasonable to cover unanticipated cost 
     increases;
       [``(II) each proposed local source of capital and operating 
     financing is stable, reliable, and available within the 
     proposed project timetable; and
       [``(III) local resources are available to operate the 
     overall proposed public transportation system (including 
     essential feeder bus and other services necessary to achieve 
     the projected ridership levels) without requiring a reduction 
     in existing public transportation services to operate the 
     proposed project.

       [``(iv) In assessing the stability, reliability, and 
     availability of proposed sources of local financing under 
     paragraph (2)(A)(iii), the Secretary shall consider--

       [``(I) existing grant commitments;
       [``(II) the degree to which financing sources are dedicated 
     to the purposes propose;
       [``(III) any debt obligation that exists or is proposed by 
     the recipient for the proposed project or other public 
     transportation purpose; and
       [``(IV) the extent to which the project has a local 
     financial commitment that exceeds the required non-Federal 
     share of the cost of the project.

       [``(3) A proposed project may advance from alternatives 
     analysis to preliminary engineering, and may advance from 
     preliminary engineering to final design and construction, 
     only if the Secretary finds that the project meets the 
     requirements of this section and there is a reasonable 
     likelihood that the project will continue to meet such 
     requirements. In making the findings, the Secretary shall 
     evaluate and rate the project as `high,' `medium-high,' 
     `medium,' `low-medium,' or `low,' based on the results of 
     alternatives analysis, the project justification criteria, 
     and the degree of local financial commitment, as required 
     under this subsection. In rating the projects, the Secretary 
     shall provide, in addition to the overall project rating, 
     individual ratings for each of the criteria established by 
     regulation.
       [``(d) Criteria for Major Capital Investment Grants Less 
     Than $75,000,000.--If the assistance provided under this 
     section is less than $75,000,000, the project shall be 
     subject to the requirements set forth in subsection (c) of 
     this section only to the extent the Secretary determines 
     appropriate.
       [``(e) Previously Issued Letter of Intent or Full Funding 
     Grant Agreement.--Subsections (c) and (d) of this section do 
     not apply to projects for which the Secretary has issued a 
     letter of intent or entered into a full funding grant 
     agreement before the date of enactment of the Federal Public 
     Transportation Act of 2003.
       [``(f) Letters of Intent, Full Funding Grant Agreements, 
     and Early Systems Work Agreements.--
       [``(1)(A) The Secretary may issue a letter of intent to an 
     applicant announcing an intention to obligate, for a major 
     capital project under this section, an amount from future 
     available budget authority specified in law that is not more 
     than the amount stipulated as the financial participation of 
     the Secretary in the project. When a letter is issued for 
     fixed guideway projects, the amount shall be sufficient to 
     complete at least an operable segment.
       [``(B) At least 30 days before issuing a letter under 
     subparagraph (A) of this paragraph or entering into a full 
     funding grant agreement, the Secretary shall notify in 
     writing the Committee on Transportation and Infrastructure of 
     the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the House and 
     Senate Committees on Appropriations of the proposed letter or 
     agreement.

[[Page 778]]

     The Secretary shall include with the notification a copy of 
     the proposed letter or agreement as well as the evaluations 
     and ratings for the project.
       [``(C) The issuance of a letter is deemed not to be an 
     obligation under sections 1108(c) and (d), 1501, and 1502(a) 
     of title 31, U.S.C., or an administrative commitment.
       [``(D) An obligation or administrative commitment may be 
     made only when amounts are appropriated.
       [``(2)(A) The Secretary may make a full funding grant 
     agreement with an applicant. The agreement shall--
       [``(i) establish the terms of participation by the United 
     States Government in a project under this section;
       [``(ii) establish the maximum amount of Government 
     financial assistance for the project;
       [``(iii) cover the period of time for completing the 
     project, including a period extending beyond the period of an 
     authorization; and
       [ ``(iv) make timely and efficient management of the 
     project easier according to the law of the United States.
       [``(B) An agreement under this paragraph obligates an 
     amount of available budget authority specified in law and may 
     include a commitment, contingent on amounts to be specified 
     in law in advance for commitments under this paragraph, to 
     obligate an additional amount from future available budget 
     authority specified in law. The agreement shall state that 
     the contingent commitment is not an obligation of the 
     Government. Interest and other financing costs of efficiently 
     carrying out a part of the project within a reasonable time 
     are a cost of carrying out the project under a full funding 
     grant agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms. The 
     amount stipulated in an agreement under this paragraph for a 
     fixed guideway project shall be sufficient to complete at 
     least an operable segment.
       [``(3)(A) The Secretary may make an early systems work 
     agreement with an applicant if a record of decision under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) has been issued on the project and the Secretary finds 
     there is reason to believe--
       [``(i) a full funding grant agreement for the project will 
     be made; and
       [``(ii) the terms of the work agreement will promote 
     ultimate completion of the project more rapidly and at less 
     cost.
       [``(B) A work agreement under this paragraph obligates an 
     amount of available budget authority specified in law and 
     shall provide for reimbursement of preliminary costs of 
     carrying out the project, including land acquisition, timely 
     procurement of system elements for which specifications are 
     decided, and other activities the Secretary decides are 
     appropriate to make efficient, long-term project management 
     easier. A work agreement shall cover the period of time the 
     Secretary considers appropriate. The period may extend beyond 
     the period of current authorization. Interest and other 
     financing costs of efficiently carrying out the work 
     agreement within a reasonable time are a cost of carrying out 
     the agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms. If 
     an applicant does not carry out the project for reasons 
     within the control of the applicant, the applicant shall 
     repay all Government payments made under the work agreement 
     plus reasonable interest and penalty charges the Secretary 
     establishes in the agreement.
       [``(4)(A) The total estimated amount of future obligations 
     of the Government and contingent commitments to incur 
     obligations covered by all outstanding letters of intent, 
     full funding grant agreements, and early systems work 
     agreements may be not more than the greater of the amount 
     authorized under section 5338(b) of this title for major 
     capital investment projects or an amount equivalent to the 
     last 3 fiscal years of funding authorized under section 
     5338(b)(3)(C) for major capital investment projects, less an 
     amount the Secretary reasonably estimates is necessary for 
     grants under this section not covered by a letter. The total 
     amount covered by new letters and contingent commitments 
     included in full funding grant agreements and early systems 
     work agreements may be not more than a limitation specified 
     in law.
       [``(B) Future obligations of the Government and contingent 
     commitments made against the contingent commitment authority 
     under section 3032(g)(2) of the Intermodal Surface 
     Transportation Efficiency Act of 1991, Public Law 102-240, as 
     amended, for the San Francisco BART to the Airport project 
     for fiscal years 2002, 2003, 2004, 2005 and 2006 shall be 
     charged against section 3032(g)(2) of that Act.
       [``(g) Government's Share of Net Project Cost.--
       [``(1) Based on engineering studies, studies of economic 
     feasibility, and information on the expected use of equipment 
     or facilities, the Secretary shall estimate the net project 
     cost. A grant for the project shall be for 50 percent of the 
     net capital project cost, unless the grant recipient requests 
     a lower grant percentage.
       [``(2) The remainder--
       [``(A) shall be from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, or new 
     capital; and
       [``(B) may include up to 30 percent from amounts 
     appropriated to or made available to a department or agency 
     of the Federal Government that are eligible to be expended 
     for transportation.
       [``(3) In addition to amounts allowed pursuant to paragraph 
     (1) of this subsection, a planned extension to a fixed 
     guideway system may include the cost of rolling stock 
     previously purchased if the applicant satisfies the Secretary 
     that only amounts other than amounts of the Government were 
     used and that the purchase was made for use on the extension. 
     A refund or reduction of the remainder may be made only if a 
     refund of a proportional amount of the grant of the 
     Government is made at the same time.
       [``(4) The prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(C)(vii) of the Social 
     Security Act shall not apply to amounts allowed pursuant to 
     paragraph (2) of this subsection.
       [``(5) This subsection does not apply to projects for which 
     the Secretary of Transportation 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 
     2003.
       [``(h) Fiscal Capacity Considerations.--If the Secretary 
     gives priority consideration to financing projects that 
     include more than the non-Government share required under 
     subsection (g) of this section, the Secretary may also give 
     consideration to `high,' `medium-high,' or `medium' projects 
     sponsored by grant applicants and State and local governments 
     of constrained fiscal capacity in selecting projects for full 
     funding grant agreements.
       [``(i) Preliminary Engineering.--Not more than 8 percent of 
     the amounts made available in each fiscal year to carry out 
     this section may be available for preliminary engineering.
       [``(j) Undertaking Projects in Advance.--
       [``(1) The Secretary may pay the Government's share of the 
     net capital project cost to a State or local governmental 
     authority that carries out any part of a project described in 
     this section without the aid of amounts of the Government and 
     according to all applicable procedures and requirements if--
       [``(A) the State or local governmental authority applies 
     for the payment;
       [``(B) the Secretary approves the payment; and
       [``(C) before carrying out the part of the project, the 
     Secretary approves the plans and specifications for the part 
     in the same way as other projects under this section.
       [``(2) The cost of carrying out part of a project includes 
     the amount of interest earned and payable on bonds issued by 
     the State or local governmental authority to the extent 
     proceeds of the bonds are expended in carrying out the part. 
     However, the amount of interest under this paragraph may not 
     be more than the most favorable interest terms reasonably 
     available for the project at the time of borrowing. The 
     applicant shall certify, in a manner satisfactory to the 
     Secretary, that the applicant has shown reasonable diligence 
     in seeking the most favorable financial terms.
       [``(3) The Secretary shall consider changes in capital 
     project cost indices when determining the estimated cost 
     under paragraph (2) of this subsection.
       [``(k) Use of Deobligated Amounts.--An amount available 
     under this section that is deobligated may be used for any 
     purpose under this section.
       [``(l) Reports.--
       [``(1) Not later than the first Monday in February of each 
     year, the Secretary shall submit to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate, as well as the Subcommittee on 
     Transportation of the Committees on Appropriations of both 
     Houses, a report that may include--
       [``(A) an allocation of amounts to be available to finance 
     grants for capital investment projects among applicants for 
     these amounts;
       [``(B) an assessment of projects for funding based on the 
     evaluations and ratings and on existing commitments and 
     anticipated funding levels for the next 3 fiscal years; and
       [``(C) detailed ratings and evaluations on each project 
     listed.
       [``(2) The Secretary shall submit a report to Congress on 
     the first Monday in February, the first Monday in June, and 
     the first Monday in October each year that includes--
       [``(A) a summary of the ratings of all applicant's capital 
     investment projects;
       [``(B) detailed ratings and evaluations on each applicant 
     project with significant changes to the finance or project 
     proposal or

[[Page 779]]

     has completed alternatives or preliminary engineering since 
     the date of the last report; and
       [``(C) all relevant information that support the evaluation 
     and rating of each updated project, including a summary of 
     each updated project's financial plan.
       [``(m) Project Defined.--In this section, the term `major 
     capital investment project' with respect to a new fixed 
     guideway system or extension to an existing fixed guideway 
     system, means a minimum operable segment of the project.''.

     [SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 
                   DEPLOYMENT PROJECTS.

       [(a) In General.--Section 5312 is amended--
       [(1) in subsection (a)--
       [(A) by striking ``or contracts'' and inserting ``, 
     contracts, cooperative agreements, or other transactions'';
       [(B) by striking ``help reduce urban transportation 
     needs,'';
       [(C) by striking ``urban'' each place it appears; and
       [(D) by striking ``and demonstration projects related'' and 
     inserting ``, demonstration or deployment projects, or 
     evaluation of technology of national significance'';
       [(2) by striking subsections (b) and (c);
       [(3) by redesignating subsections (d) and (e) as (b) and 
     (c), respectively.
       [(4) in subsection (b)(2), as redesignated, by striking 
     ``other agreements'' and inserting ``other transactions'';
       [(5) in subsection (b)(3), as redesignated, by striking 
     ``50'' and inserting ``80'';
       [(6) in subsection (b)(4), by adding the following sentence 
     at the end: ``The evaluation criteria shall include 
     consideration of a share of consortium contributions to the 
     overall research costs.'';
       [(7) in subsection (c)(2), as redesignated, by striking 
     ``and'' and inserting ``or'' before ``private''; and
       [(8) in subsections (b)(5) and (c)(3), as redesignated, by 
     striking ``within the Mass Transit Account of the Highway 
     Trust Fund''.
       [(b) Conforming Amendments.--
       [(1) Section 5312 is amended by striking the section 
     heading and inserting the following:

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

       [(2) The item relating to section 5312 in the table of 
     sections is amended to read as follows:

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

     [SEC. 3014. COOPERATIVE RESEARCH GRANT PROGRAM.

       [(a) In General.--Section 5313 is amended--
       [(1) in subsection (a) by--
       [(A) striking ``(1)'';
       [(B) striking ``paragraphs (1) and (2)(C)(ii) of section 
     5338(d) and inserting ``5338(a)(2)(F)(iii)(I) and (III)''; 
     and
       [(C) striking ``(2)'' and inserting ``(b) Federal 
     Assistance.--'';
       [(2) by striking subsection (b); and
       [(3) in subsection (c), by striking ``subsection (a) of''.
       [(b) Conforming Amendments.--
       [(1) Section 5313 is amended by striking the section 
     heading and inserting the following:

     [``Sec. 5313. Cooperative research program''.

       [(2) The item relating to section 5313 in the table of 
     sections is amended to read as follows:

[``5313. Cooperative research program.''.

     [SEC. 3015. NATIONAL RESEARCH PROGRAMS.

       [(a) In General.--Section 5314 is amended--
       [(1) in the section heading, by striking ``planning and'';
       [(2) in subsection (a)(1), by--
       [(A) striking ``subsections (d) and (h)(7) of section 
     5338'' and inserting ``section 5338(a)(2)(F)'';
       [(B) striking ``and contracts'' and inserting ``, 
     contracts, cooperative agreements, or other transactions''; 
     and
       [(C) striking ``5317,'';
       [(3) in the first sentence of subsection (a)(3), by 
     striking all that follows ``chapter'';
       [(4) by striking subsection (a)(4)(B);
       [(5) by redesignating subsection (a)(4)(C) as subsection 
     (a)(4)(B); and
       [(6) in subsection (b), by striking ``or contract'' and all 
     that follows in the first sentence, and inserting ``, 
     contract, cooperative agreement, or other transaction under 
     subsection (a) of this section or section 5312.''
       [(b) Conforming Amendments.--The item relating to section 
     5314 in the table of sections is amended to read as follows:

[``5314. National research programs.''.

     [SEC. 3016. NATIONAL TRANSIT INSTITUTE.

       [Section 5315 is amended--
       [(1) in subsection (a)--
       [(A) by striking ``public mass transportation'' and 
     inserting ``public transportation'' each place it appears;
       [(B) by striking ``mass'' after ``Government-aid'' and 
     inserting ``public''; and
       [(C) in paragraphs (1), (6), (7), and (10) by striking 
     ``mass'' each place it appears before ``transportation'' and 
     inserting ``public'';
       [ (2) by striking subsection (b);
       [(3) by redesignating subsections (c) and (d) as 
     subsections (b) and (c), respectively; and
       [(4) in subsection (c), as redesignated, by striking 
     ``mass'' each place it appears.

     [SEC. 3017. BUS TESTING FACILITY.

       [Section 5318 is amended--
       [(1) by revising subsection (a) to read as follows:
       [``(a) Facility.--The Secretary of Transportation shall 
     maintain one facility for testing a new bus model for 
     maintainability, reliability, safety, performance (including 
     braking performance), structural integrity, fuel economy, 
     emissions, and noise.'';
       [(2) in subsection (d), by striking ``section 
     5309(m)(1)(C)'' and inserting section 5338(a)(2)(I); and
       [(3) by revising subsection (e) to read as follows:
       [``(e) Acquiring New Bus Models.--Amounts appropriated or 
     made available under this chapter may be obligated or 
     expended to acquire a new bus model only if a bus of that 
     model has been tested at the facility maintained by the 
     Secretary under subsection (a).''.

     [SEC. 3018. BICYCLE FACILITIES.

       [Section 5319 is amended by striking ``5309(h),'' and 
     inserting `` 5309(g),''.

     [SEC. 3019. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

       [Section 5320 is repealed.

     [SEC. 3020. GENERAL PROVISIONS ON ASSISTANCE.

       [Section 5323 is amended--
       [(1) In paragraph (a)(1) by--
       [(A) striking ``private mass transportation company'' each 
     place it appears and inserting ``private company engaged in 
     public transportation'';
       [(B) striking ``mass transportation equipment or a mass 
     transportation facility'' and inserting ``a public 
     transportation facility or equipment''; and
       [(C) striking ``mass transportation company'' and inserting 
     ``public transportation company'';
       [(2) in subsection (a)(1)(B), by striking ``private mass 
     transportation companies'' and inserting ``private companies 
     engaged in public transportation'';
       [(3) in subsection (b)--
       [(A) in paragraph (1)--
       [(i) by striking ``or loan''; and
       [(ii) by striking ``a certificate of the applicant'' and 
     inserting ``in the environmental record for the project 
     evidence''; and
       [(B) in subparagraph (A) of paragraph (1), by striking ``a 
     public hearing with adequate prior notice'' and inserting 
     ``public review and comment on the project''
       [(C) by amending subparagraph (B) of paragraph (1) to read 
     as follows:
       [``(B) held a public hearing on the project if it affects 
     significant economic, social, or environmental interests;'';
       [(4) in paragraph (2), by striking the last sentence;
       [(5) by revising 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 is subject to 
     the requirements of section 5309 of this title to the extent 
     the Secretary considers appropriate.'';
       [(6) in subsection (d)--
       [(A) by revising paragraph (2) to read as follows:
       [``(2) The Secretary may waive paragraph (1) of this 
     subsection if the Secretary finds that the provision of 
     intercity charter bus transportation service by the 
     applicant, governmental authority, or publicly owned operator 
     is necessary to meet the transportation needs of the elderly 
     and individuals with disabilities.''; and
       [(B) by adding at the end the following paragraph:
       [``(3) On receiving a complaint about a violation of the 
     agreement required under paragraph (1), the Secretary shall 
     investigate and decide whether a violation has occurred. If 
     the Secretary decides that a violation has occurred, the 
     Secretary shall correct the violation under terms of the 
     agreement. In addition to any remedy specified in the 
     agreement, the Secretary shall bar a recipient or an operator 
     from receiving Federal transit assistance in an amount the 
     Secretary deems appropriate.'';
       [(7) by striking subsection (e);
       [(8) by redesignating subsection (f) as (e);
       [(9) in subsection (e), as redesignated--
       [(A) by revising paragraph (2) to read as follows:
       [``(2) The Secretary may waive paragraph (1) of this 
     subsection if the Secretary finds that the provision of 
     schoolbus transportation by the applicant, governmental 
     authority, or publicly owned operator is necessary to meet 
     the transportation needs of students with disabilities.''; 
     and
       [(B) by adding at the end the following paragraph:
       [``(3) If the Secretary finds that an applicant, 
     governmental authority, or publicly owned operator has 
     violated the agreement required under paragraph (1) of this 
     subsection, the Secretary shall bar a recipient or an 
     operator from receiving Federal transit assistance in an 
     amount the Secretary deems appropriate.'';
       [(10) by revising subsection (f) to read as follows:

[[Page 780]]

       [``(f) Bond Proceeds Eligible for Local Share.--
       [``(1) Notwithstanding any other provision of law, a 
     recipient of assistance under sections 5307 or 5309 of this 
     chapter, may use the proceeds from the issuance of revenue 
     bonds as part of the local matching funds for a capital 
     project.
       [``(2) The Secretary may reimburse an eligible recipient 
     for deposits of bond proceeds in a debt service reserve that 
     recipient established pursuant to section 5302(a)(1a)(K) of 
     this title from amounts made available to the recipient under 
     sections 5307 or 5309 of this title.'';
       [(11) in subsection (g), by--
       [(A) striking ``(f)'' and inserting ``(e)'';
       [(B) striking ``103(e)(4) and'' in the first and second 
     sentence and inserting ``133''; and
       [(C) striking (f)(1)(C) and inserting ``(e)(1)(C)'';
       [(12) by revising subsection (h) to read as follows:
       [``(h) Transfer of Lands or Interests in Lands Owned by the 
     United States.--
       [``(1) 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 file 
     with the Secretary of the Department supervising the 
     administration of such lands or interests in lands a map 
     showing the portion of such lands or interests in lands which 
     is desired to be transferred for public transportation 
     purposes.
       [``(2) If within four months after such filing, the 
     Secretary of such Department shall not have certified to the 
     Secretary that the proposed appropriation of such land is 
     contrary to the public interest or inconsistent with the 
     purposes for which such land has been reserved, or shall have 
     agreed to the appropriation and transfer under conditions 
     which the Secretary of such Department deems necessary for 
     the adequate protection and utilization of the reserve, then 
     such land and materials may be appropriated and transferred 
     to a State, or local government, or public transportation 
     operator for such purposes and subject to the conditions so 
     specified.
       [``(3) If at any time such lands are no longer needed for 
     public transportation purposes, notice shall be given by the 
     State, or local government, or public transportation operator 
     that received the land, to the Secretary, and such lands 
     shall immediately revert to the control of the Secretary of 
     the Department from which the land was originally 
     transferred.'';
       [(13) in subsection (j)--
       [(A) by revising paragraph (1) to read as follows:
       [``(1)(A) The Secretary may obligate an amount that may be 
     appropriated to carry out this chapter for a project only if 
     the steel, iron, rolling stock, and components and 
     subcomponents of the rolling stock used in the project are 
     produced in the United States.
       [``(B) When procuring rolling stock (including train 
     control, communication, and traction power equipment) under 
     this chapter--
       [``(i) the cost of components and subcomponents produced in 
     the United States shall be more than 60 percent of the cost 
     of all components of the rolling stock; and
       [``(ii) final assembly of the rolling stock shall occur in 
     the United States.
       [``(C) In this subsection, labor costs involved in final 
     assembly are not included in calculating the cost of 
     components.'';
       [(B) in paragraph (2)(B)--
       [(i) by striking ``and goods'' and inserting ``rolling 
     stock, and the components and subcomponents of rolling 
     stock''; and
       [(ii) by adding ``or'' at the end;
       [(C) by striking paragraph (2)(C);
       [(D) by redesignating paragraph (2)(D) as paragraph (2)(C);
       [(E) by striking paragraph (3) and redesignating paragraphs 
     (4), (5), (6), and (7) as paragraphs (3), (4), (5), and (6), 
     respectively;
       [(F) in paragraph (4), as redesignated, by striking 
     ``Intermodal Surface Transportation Efficiency Act of 1991 
     (Public Law 102-240, 105 Stat. 1914'' and inserting ``Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003'';
       [(14) by revising subsection (l) to read as follows:
       [``(l) Relationship to Other Laws.--Section 1001 of title 
     18, U.S.C., 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, when a false or fraudulent statement or 
     related act within the meaning of section 1001 is made in 
     connection with a Federal transit program.'';
       [(15) 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) of this section do not apply 
     to private nonprofit organizations or to grantees serving 
     areas with fewer than one million people.'';
       [(16) in subsection (o) by striking ``the Transportation 
     Infrastructure Finance and Innovation Act of 1998'' and 
     inserting ``23 U.S.C. 188''.

     [SEC. 3021. 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 and furnished as a required 
     contribution incident to a project, the Secretary may not 
     approve the application for financial assistance unless the 
     applicant has made all payments and provided all assistance 
     and assurances as are required of a State agency under 
     Sections 210 and 305 of the Uniform Relocation Assistance and 
     Real Property Acquisition Policies Act, as amended (Uniform 
     Act). The Secretary must be advised of specific references to 
     any State law that are believed to be an exception to 
     Sections 301 or 302 of the Uniform Act.
       [``(b) Advance Real Property Acquisitions.--
       [``(1) The Secretary may participate in the acquisition of 
     real property prior to completion of the environmental 
     reviews for any project that may use the property if the 
     Secretary determines that external market forces are 
     jeopardizing the potential use of the property for the 
     project, given any of the following conditions--
       [``(A) there are offers on the open real estate market to 
     convey that property for a use or uses incompatible with the 
     project under study;
       [``(B) there is an imminent threat of development or 
     redevelopment of the property for use or uses 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, but also 
     likely 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) Property acquired in accordance with this subsection 
     may not be developed in anticipation of the project until the 
     Secretary has complied with the National Environmental Policy 
     Act and the applicable provisions of the Department of 
     Transportation Act for protection of publicly owned park 
     lands, wildlife and waterfowl refuges, and historic sites.
       [``(3) The Secretary shall limit the size and number of 
     properties acquired in accordance with this subsection as 
     necessary to avoid any prejudice to the Secretary's objective 
     evaluation of project alternatives.
       [``(4) An acquisition undertaken pursuant to this section 
     shall be considered to be an exempt project under section 176 
     of the Clear Air Act and its implementing regulations.
       [``(c) Railroad Corridor Preservation.--
       [``(1) The Secretary may assist an applicant in the 
     acquisition of a pre-existing railroad right-of-way prior to 
     completion of the environmental reviews for any project that 
     may use the right-of-way if the acquisition is otherwise 
     permitted under Federal law; furthermore, the Secretary may 
     establish restrictions on such an acquisition as the 
     Secretary deems necessary and appropriate.
       [``(2) Railroad right-of-way acquired in accordance with 
     this subsection may not be developed in anticipation of the 
     project until the Secretary has complied with the National 
     Environmental Policy Act and the applicable provisions of the 
     Department of Transportation Act for protection of publicly 
     owned park lands, wildlife and waterfowl refuges, and 
     historic sites.
       [``(d) Consideration of Economic, Social, and Environmental 
     Interests.--
       [``(1) In carrying out section 5301(e) of this chapter, the 
     Secretary shall cooperate and consult with the Secretaries of 
     the Interior, Housing and Urban Development, and the 
     Administrator of the Environmental Protection Agency on each 
     project that may have a substantial impact on the 
     environment.
       [``(2) In performing environmental reviews, the Secretary 
     shall consider the public comments on a project submitted 
     under section 5323(b) of this title and ensure that an 
     adequate opportunity to present views was given to all 
     parties having a significant economic, social, or 
     environmental interest in the project, and that the project 
     application includes a record of--
       [``(A) the environmental impact of the proposal;
       [``(B) adverse environmental effects that cannot be 
     avoided;
       [``(C) alternatives to the proposal; and
       [``(D) irreversible and irretrievable impacts on the 
     environment.
       [``(3)(A) The Secretary may approve an application for 
     financial assistance for a capital project in accordance with 
     this chapter only if the Secretary makes written findings, 
     after reviewing the environmental record included with the 
     project application, that--
       [``(i) an adequate opportunity to present views was given 
     to all parties having a significant economic, social, or 
     environmental interest;

[[Page 781]]

       [``(ii) the preservation and enhancement of the environment 
     and the interest of the community in which the project is 
     located were considered; and
       [``(iii) no adverse environmental effect is likely to 
     result from the project, or no feasible and prudent 
     alternative to the effect exists and all reasonable steps 
     have been taken to minimize the effect.
       [``(B) The Secretary's findings under subparagraph (A) of 
     this paragraph shall be made a matter of public record.''.
       [(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. 3022. CONTRACT REQUIREMENTS.

       [(a) In General.--Section 5325 is amended--
       [(1) by revising subsection (a) to read as follows:
       [``(a) Competition.--Recipients of Federal assistance under 
     this chapter shall conduct all procurement transactions in a 
     manner providing full and open competition as determined by 
     the Secretary.'';
       [(2) by revising subsection (b) to read as follows:
       [``(b) Architectural, Engineering, and Design Contracts.--A 
     contract or requirement for program management, architectural 
     engineering, construction management, a feasibility study, 
     and preliminary engineering, design, architectural, 
     engineering, surveying, mapping, or related services for a 
     project for which Federal assistance is provided under this 
     chapter shall be awarded in the same way as a contract for 
     architectural and engineering services is negotiated under 
     chapter 11 of title 40, U.S.C., 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. When 
     awarding such contracts, recipients of assistance under this 
     chapter shall maximize efficiencies of administration by 
     accepting non-disputed audits conducted by other governmental 
     agencies as follows:
       [``(1) Any contract or subcontract awarded under this 
     chapter shall be performed and audited in compliance with 
     cost principles contained in the Federal Acquisition 
     Regulation, part 31 of title 48, Code of Federal Regulations.
       [``(2) Instead of performing its own audits, 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 Regulations for one-
     year applicable accounting periods by a cognizant Federal or 
     State government agency, if such rates are not currently 
     under dispute.
       [``(3) Once a firm's indirect cost rates are accepted under 
     this paragraph, 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.
       [``(4) A recipient of funds requesting or using the cost 
     and rate data described in paragraph (3) shall notify any 
     affected firm before such request or use. Such data shall be 
     confidential and shall not be accessible or provided, in 
     whole or in part by the group of agencies sharing cost data 
     under this paragraph, except by written permission of the 
     audited firm. If prohibited by law, such cost and rate data 
     shall not be disclosed under any circumstances.'';
       [(3) by inserting new subsections (d) through (h), after 
     subsection (c), to read as follows:
       [``(d) Design-Build System Projects.--
       [``(1) `design-build system project' means a project under 
     which a recipient enters into a contract with a seller, firm, 
     or consortium of firms to design and build a public 
     transportation system or an operable segment thereof that 
     meets specific performance criteria. Such project may also 
     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) Government financial assistance under this chapter 
     may be made available for the capital costs of a design-build 
     system project after the recipient complies with Government 
     requirements.
       [``(e) Multiyear Rolling Stock.--
       [``(1) A recipient procuring rolling stock with Government 
     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.
       [``(2) The Secretary shall allow a recipient to act on a 
     cooperative basis to procure rolling stock in compliance with 
     this subsection and other Government procurement 
     requirements.
       [``(f) Acquiring Rolling Stock.--A recipient of financial 
     assistance under this chapter may enter into a contract to 
     expend that assistance to acquire rolling stock--
       [``(1) based on--
       [``(A) initial capital costs; or
       [``(B) performance, standardization, life cycle costs, and 
     other factors; or
       [``(2) with a party selected through a competitive 
     procurement process.
       [``(g) Examination of the 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, papers, including 
     contracts, related to a projects for which a grant is made 
     under this chapter.
       [``(h) Grant Prohibitions.---A grant may not be used to 
     support a procurement that uses an exclusionary or 
     discriminatory specification.''.
       [(b) Conforming Amendments.--Chapter 53 of title 49, United 
     States Code, is amended by--
       [(1) repealing section 5326; and
       [(2) striking ``5326. Special Procurements.'' in the table 
     of sections for chapter 53.

     [SEC. 3023. HUMAN RESOURCE PROGRAMS.

       [(a) In General.--Section 5322 is amended--
       [(1) by inserting ``(a) In General.--'' before the 
     beginning of the first sentence of the section; and
       [(2) by adding the following at the end:
       [``(b) Grants to Higher Learning Institutions.--
       [``(1) The Secretary (or the Secretary of Housing and Urban 
     Development when required by section 5334(i) of this title) 
     may make grants to nonprofit institutions of higher 
     learning--
       [``(A) to conduct competent research and investigations 
     into the theoretical or practical problems of urban 
     transportation; and
       [``(B) to train individuals to conduct further research or 
     obtain employment in an organization that plans, builds, 
     operates, or manages an urban transportation system.
       [``(2) Research and investigations under this subsection 
     include--
       [``(A) the design and use of urban public transportation 
     systems and urban roads and highways;
       [``(B) the interrelationship between various modes of urban 
     and interurban transportation;
       [``(C) the role of transportation planning in overall urban 
     planning;
       [``(D) public preferences in transportation;
       [``(E) the economic allocation of transportation resources; 
     and
       [``(F) the legal, financial, engineering, and esthetic 
     aspects of urban transportation.
       [``(3) When making a grant under this subsection, the 
     Secretary shall give preference to an institution that brings 
     together knowledge and expertise in the various social 
     science and technical disciplines related to urban 
     transportation problems.
       [``(c) Fellowships.--
       [``(1) The Secretary may make grants to States, local 
     governmental authorities, and operators of public 
     transportation systems to provide fellowships to train 
     personnel employed in managerial, technical, and professional 
     positions in the mass transportation field.
       [``(2) A fellowship under this subsection may be for not 
     more than one year of training in an institution that offers 
     a program applicable to the public transportation industry. 
     The recipient of the grant shall select an individual on the 
     basis of demonstrated ability and for the contribution the 
     individual reasonably can be expected to make to an efficient 
     public transportation operation. A grant for a fellowship may 
     not be more than the lesser of $65,000 or 75 percent of--
       [``(A) tuition and other charges to the fellowship 
     recipient;
       [``(B) additional costs incurred by the training 
     institution and billed to the grant recipient; and
       [``(C) the regular salary of the fellowship recipient for 
     the period of the fellowship to the extent the salary is 
     actually paid or reimbursed by the grant recipient.
       [``(d) Other Grants.--The Secretary may make grants to 
     State and local governmental authorities for projects that 
     will use innovative techniques and methods in managing and 
     providing public transportation.''.

     [SEC. 3024. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

       [(a) Project Management Plan Requirements.--Section 5327(a) 
     is amended--
       [(1) by striking ``and'' at the end of paragraph 11;
       [(2) in paragraph 12, by striking the ``.'' and inserting 
     ``; and''; and
       [(3) by adding after paragraph (12) the following:
       [``(13) safety and security management.''.
       [(b) Limitations on Use of Available Amounts.--Section 
     5327(c) is amended--
       [(1) in paragraph (1)--
       [(A) by striking ``.5'' and inserting ``1'';
       [(B) by striking ``5307, 5309, or 5311 of this title, an 
     interstate transfer mass transportation project under section 
     103(e)(4) of title 23 as in effect on September 30, 1991,'' 
     and inserting ``5307-5311, 5316, or 5317 of this title,'';
       [(C) by striking ``to make a contract'';
       [(D) by striking ``a major project'' and inserting ``major 
     projects''; and
       [(E) by striking ``section 5307, 5309, 5311, or 103(e)(4)'' 
     and inserting ``sections 5307-5311, 5316, 5317,'';
       [(2) in paragraph (2), by inserting ``and security'' after 
     ``safety''; and
       [(3) by redesignating paragraph (3) as (4) and inserting a 
     new paragraph (3), as follows:
       [``(3) The Secretary shall deduct a sum in an amount that 
     the Secretary determines necessary to administer this section 
     from the amounts made available under paragraph

[[Page 782]]

     (1) of this subsection. These funds shall be in addition to 
     any other funds made available for these purposes, and shall 
     remain available until expended.''.

     [SEC. 3025. PROJECT REVIEW.

       [Section 5328 is repealed.

     [SEC. 3026. INVESTIGATIONS OF SAFETY AND SECURITY RISK.

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

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

       [``The Secretary may conduct investigations into safety 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. If the Secretary 
     establishes that a safety 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. Any such plan relating to security risks shall be 
     developed in consultation with the Secretary of Homeland 
     Security. 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 and security risks.''.

     [SEC. 3027. STATE SAFETY OVERSIGHT.

       [(a) In General.--Section 5330 is amended--
       [(1) by striking the heading ``Withholding Amounts for 
     Noncompliance with Safety Requirements'' and inserting 
     ``State Safety Oversight'';
       [(2) in subsection (a), by striking the text and inserting 
     the following ``This section applies only to--
       [``(1) States that have rail fixed guideway public 
     transportation systems 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 inserting ``shall ensure uniform 
     safety standards and enforcement and'' after ``affected 
     States''; and
       [(4) by striking subsection (f).
       [(b) Conforming Amendment.--The item relating to section 
     5330 in the table of sections for chapter 53 is amended to 
     read as follows:

[``5330. State safety oversight.''.

     [SEC. 3028. SENSITIVE SECURITY INFORMATION.

       [Section 40119(b) is amended--
       [(1) in paragraph (1)(C) by striking ``transportation 
     safety'' and inserting ``the safety of transportation 
     facilities or infrastructure, or transportation employees''; 
     and
       [(2) by adding at the end a new paragraph (3), to read as 
     follows:
       [``(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. 3029. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE 
                   AGAINST PUBLIC TRANSPORTATION SYSTEMS.

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

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

     [SEC. 3030. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

       [(a) Definitions.--Section 5331(a)(3) is amended by 
     inserting after ``title'' the following: ``, or sections 
     2303a, 7101(i), 7302(e) of title 46, United States Code. 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.''.
       [(b) Regulations.--Section 5331(f) is amended by striking 
     paragraph (3).

     [SEC. 3031. EMPLOYEE PROTECTIVE ARRANGEMENTS.

       [Section 5333(b)(1) is amended by striking ``5318(d), 
     5323(a)(1), (b), (d), and (e), 5328, 5337, and 5338(b)'' each 
     place it appears and inserting ``5316-5318, 5323(a)(1), (b), 
     and (c), 5337, and 5338(b)(3)(C)''.

     [SEC. 3032. ADMINISTRATIVE PROCEDURES.

       [Section 5334 is amended--
       [(1) in subsection (a),
       [(A) by striking ``and'' at the end of paragraph (9);
       [(B) by striking the period at the end of paragraph (10) 
     and inserting ``; and''; and
       [(C) by inserting after paragraph (10) 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);
       [(3) by adding a new subsection (b) after subsection (a), 
     to read as follows:
       [``(b) Prohibitions Against Regulating Operations and 
     Charges.--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 the operation, 
     routes, or schedules of a public transportation system for 
     which a grant is made under this chapter, nor may the 
     Secretary regulate the rates, fares, tolls, rentals, or other 
     charges prescribed by any public or private transportation 
     provider; provided, however, that 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,
       [(A) by striking ``carry'' and inserting ``advise and 
     assist the Secretary in carrying''; and
       [(B) by striking ``and (b)(1)'' and insert ``5322(b)(1)''.

     [SEC. 3033. REPORTS AND AUDITS.

       [Section 5335 is amended--
       [(1) in subsection (a), by--
       [(A) striking ``(1)''; and
       [(B) striking ``(2)'' and inserting ``(b) Reporting and 
     Uniform Systems.--''; and
       [(2) by striking subsection (b).

     [SEC. 3034. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA 
                   GRANTS.

       [(a) In General.--Section 5336 is amended by--
       [(1) striking subsection (d);
       [(2) striking subsection (k);
       [(3) redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively; and
       [(4) adding a new subsection (a) as follows:
       [``(a) Apportionment of Allocations.--Of the amounts 
     allocated under section 5338(a)(2)(P) of this title--
       [``(1) the following percentages shall be apportioned to 
     each urbanized area in accordance with subsection (k) of this 
     section:
       [``(A) One percent in fiscal year 2004.
       [``(B) Three percent in fiscal year 2005.
       [``(C) Five percent in fiscal year 2006.
       [``(D) Seven percent in fiscal year 2007.
       [``(E) Nine percent in fiscal year 2008.
       [``(F) Ten percent in every fiscal year thereafter.
       [``(2) the remaining portion shall be apportioned to each 
     urbanized area in accordance with subsections (b) through (d) 
     of this section.''.
       [(b) Based on Urbanized Area Population.--Subsection (b), 
     as redesignated, is amended--
       [(1) by striking ``Of the amount made available or 
     appropriated under section 5338(a) of this title'' and 
     inserting ``Of the amount to be apportioned under subsection 
     (a)(2) of this section''; and
       [(2) in paragraph (2), by striking ``subsections (b) and 
     (c)'' and inserting ``subsections (c) and (d)''.
       [(c) Based on Fixed Guideway Revenue Vehicle-Miles, Route-
     Miles, and Passenger-Miles.--Subsection (c)(2), as 
     redesignated, is amended by striking ``subsection (a)(2)'' 
     and inserting ``subsection (b)(2)''.
       [(d) Based on Bus Revenue Vehicle-Miles and Passenger-
     Miles.--Subsection (d), as redesignated, is amended by 
     striking ``subsection (a)(2)'' and inserting ``subsection 
     (b)(2)''.
       [(e) Date of Apportionment.--Subsection (e)(1) is amended 
     by striking ``subsections (a) and (h)(2) of section 5338'' 
     and inserting ``section 5338(a)(2)(P)''.
       [(f) Transfers of Apportionments.--Subsection (g) is 
     amended by striking ``subsection (a)(1)'' and inserting 
     ``subsection (b)(1)'' each time it appears.
       [(g) Apportionment Based on Incentive Factors.--Section 
     5336 is amended by adding a new subsection (k) as follows:
       [``(k) Apportionment Based on Incentive Factors.--
       [``(1) Of the amounts apportioned under subsection (a)(1) 
     of this section, the Secretary may use the following amounts 
     to make grants to establish data collection systems capable 
     of collecting the data in paragraph (3) of this subsection:
       [``(A) $25,000,000 in fiscal year 2004.
       [``(B) $15,000,000 in fiscal year 2005.
       [``(C) $5,000,000 in fiscal year 2006.
       [``(2) Amounts under paragraph (1) of this subsection not 
     obligated within three years following the end of the fiscal 
     year in which those amounts became available shall be 
     available for apportionment under paragraph (3) of this 
     subsection.
       [``(3) The remaining amounts to be apportioned under 
     subsection (a)(1) of this section shall be apportioned by a 
     formula determined by the Secretary that distributes funds 
     based on increases in public transportation patronage.
       [``(4) In apportioning funds under this subsection, the 
     Secretary may consider the efficiency of service provision in 
     the urbanized area.

[[Page 783]]

       [``(5) The Secretary shall not apportion any amounts under 
     this subsection to an urbanized area that experiences a 
     significant decline, as determined by the Secretary, in 
     public transportation patronage by elderly individuals, 
     individuals with disabilities, or low income persons.''.

     [SEC. 3035. APPORTIONMENTS BASED ON FIXED GUIDEWAY FACTORS.

       [(a) Section Heading.--Section 5337 is amended by striking 
     the section heading and inserting the following:

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

       [(b) Distribution.--The text of subsection 5337(a) before 
     the first colon is amended to read as follows: ``Amounts made 
     available under section 5338(a)(2)(N) of this title are 
     apportioned as follows:''.
       [(c) In General.--Section 5337 is amended by--
       [(1) striking ``section 5336(b)(2)(A)'' each place it 
     appears and inserting ``section 5336(c)(2)(A)'';
       [(2) striking subsection (e); and
       [(3) redesignating subsection (f) as subsection (e).
       [(d) Conforming Amendment.--The item relating to section 
     5337 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     [SEC. 3036. AUTHORIZATIONS.

       [The text of section 5338 is amended to read as follows:
       [``(a) Formula Grants and Research.--
       [``(1) There shall be available from the Mass Transit 
     Account of the Highway Trust Fund to carry out sections 5305, 
     5307, 5308, 5310-5318, 5322, 5335, 5505, and 5570-5575 of 
     this title, and section 3038 of Public Law 105-178--
       [``(A) $5,615,406,000 for fiscal year 2004;
       [``(B) $5,727,714,000 for fiscal year 2005;
       [``(C) $5,846,851,000 for fiscal year 2006;
       [``(D) $5,978,405,000 for fiscal year 2007;
       [``(E) $6,126,071,000 for fiscal year 2008; and
       [``(F) $6,274,935,000 for fiscal year 2009.
       [``(2) Of the aggregate of amounts made available under 
     this subsection for a fiscal year,
       [``(A) 1.25 percent shall be available to carry out section 
     5305 in the fiscal year 2004;
       [``(B) 2 percent shall be available to carry out section 
     5305 in fiscal years 2005 through 2009;
       [``(C) the following amounts shall be available to carry 
     out section 5335--
       [``(i) $3,500,000 in fiscal year 2004;
       [``(ii) $3,700,000 in fiscal year 2005;
       [``(iii) $3,900,000 in fiscal year 2006;
       [``(iv) $4,100,000 in fiscal year 2007;
       [``(v) $4,300,000 in fiscal year 2008; and
       [``(vi) $4,500,000 in fiscal year 2009;
       [``(D) $4,849,950 shall be available for grants to the 
     Alaska Railroad for improvements to its passenger operations 
     in lieu of receiving an apportionment under section 5336 of 
     this title;
       [``(E) $6,950,000 shall be available to carry out section 
     3038 of the Transportation Equity Act for the 21st Century, 
     as amended;
       [``(F) the following amounts shall be available to carry 
     out transit cooperative research programs under section 5313, 
     the National Transit Institute under section 5315, and 
     national research programs under sections 5312, 5313, 5314, 
     and 5322:
       [``(i) $43,750,000 in fiscal year 2004;
       [``(ii) 0.779 percent in fiscal years 2005 through 2009; 
     and
       [``(iii) Of the amount made available by this paragraph:

       [``(I) 18.85 percent shall be available for carrying out 
     transit cooperative research programs under section 5313;
       [``(II) 9.14 percent shall be available to carry out 
     programs under the National Transit Institute under section 
     5315, including not more than $1,000,000 shall be available 
     to carry out section 5315(a)(16); and ------
       [``(III) the remainder shall be available for carrying out 
     national research programs under sections 5312, 5313, 5314, 
     and 5322;

       [``(G) $30,000,000 shall be available to carry out section 
     5316 for each fiscal year 2005 through 2009, based on need 
     and supported by transportation financial feasibility studies 
     and planning analyses;
       [``(H) the following amounts shall be available for the New 
     Freedom program under section 5317 of this title:
       [``(i) $145,000,000 in fiscal year 2004; and
       [``(ii) 2.582 percent in fiscal years 2005 through 2009;
       [``(I) the following amounts shall be available to carry 
     out section 5318:
       [``(i) $3,000,000 in fiscal year 2004; and
       [``(ii) 0.061 percent in fiscal years 2005 through 2009;
       [``(J) $6,000,000 shall be available to carry out section 
     5505 of this title;
       [``(K) 6.4 percent shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       [``(L) 1.55 percent shall be available to provide financial 
     assistance for services for elderly persons and persons with 
     disabilities under section 5310;
       [``(M) the following amounts shall be available to provide 
     financial assistance for job access and reverse commute 
     projects under section 5308:
       [``(i) $150,000,000 in fiscal year 2004; and
       [``(ii) 2.671 percent in fiscal years 2005 through 2009;
       [``(N) the following amounts shall be available to provide 
     financial assistance for urbanized areas under section 5307 
     and apportioned in accordance with section 5337:
       [``(i) $1,214,400,000 in fiscal year 2004; and
       [``(ii) 21.626 percent in fiscal years 2005 through 2009; 
     and
       [``(O) $75,000,000 shall be available to carry out sections 
     5570 through 5575 in fiscal years 2005 through 2009.
       [``(P) The remaining amount shall be available to provide 
     financial assistance for urbanized areas under section 5307 
     and apportioned in accordance with section 5336.
       [``(b) Major Capital Investment Program Grants.--
       [``(1) There shall be available from the Mass Transit 
     Account of the Highway Trust Fund to carry out sections 5305 
     and 5309--
       [``(A) $320,594,000 for fiscal year 2004;
       [``(B) $327,006,000 for fiscal year 2005;
       [``(C) $333,808,000 for fiscal year 2006;
       [``(D) $341,318,000 for fiscal year 2007;
       [``(E) $349,749,000 for fiscal year 2008; and
       [``(F) $358,248,000 for fiscal year 2009.
       [``(2) In addition to amounts made available under 
     paragraph (1), there are authorized to be appropriated to 
     carry out sections 5305 and 5309--
       [``(A) $1,213,500,000 for fiscal year 2004;
       [``(B) $1,236,192,000 for fiscal year 2005;
       [``(C) $1,261,287,000 for fiscal year 2006;
       [``(D) $1,289,162,000 for fiscal year 2007;
       [``(E) $1,321,907,000 for fiscal year 2008; and
       [``(F) $1,355,219,000 for fiscal year 2009.
       [``(3) Of the amounts made available by and appropriated 
     under this subsection for a fiscal year,
       [``(A) 1.25 percent shall be available to carry out section 
     5305 in the fiscal year 2004;
       [``(B) 2 percent shall be available to carry out section 
     5305 in fiscal years 2005 through 2009; and
       [``(C) the remaining amount shall be available to carry out 
     Major Capital Investment Grants under section 5309 of this 
     title.
       [``(c) Administration.--There are authorized to be 
     appropriated to carry out section 5334--
       [``(A) $76,500,000 for fiscal year 2004;
       [``(B) $77,931,000 for fiscal year 2005;
       [``(C) $79,513,000 for fiscal year 2006;
       [``(D) $81,270,000 for fiscal year 2007;
       [``(E) $83,334,000 for fiscal year 2008; and
       [``(F) $85,434,000 for fiscal year 2009.
       [``(d) Grants as Contractual Obligations.--
       [``(1) A grant or contract approved by the Secretary, that 
     is financed with amounts made available under subsections 
     (a), (b)(1), or (e) is a contractual obligation of the United 
     States Government to pay the Government's share of the cost 
     of the project.
       [``(2) A grant or contract, approved by the Secretary, that 
     is financed with amounts made available under subsections 
     (b)(2) or (c) is a contractual obligation of the Government 
     to pay the Government's share of the cost of the project only 
     to the extent that amounts are provided in advance in an 
     appropriations Act.
       [``(e) Revenue Aligned Budget Authority.--
       [``(1) On October 15 of fiscal year 2006 and each fiscal 
     year thereafter, the Secretary shall prorate an amount of 
     funds equal to the amount determined pursuant to section 
     251(b)(1)(C) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 in a portion equal to the amount 
     available to each Federal transit program for which funds are 
     available from the Mass Transit Account of the Highway Trust 
     Fund under subsections (a) and (b) of this section.
       [``(2) Authorization of appropriations.--There are 
     authorized to be appropriated from the Mass Transit Account 
     of the Highway Trust Fund such sums as may be necessary to 
     carry out this subsection for fiscal years beginning after 
     September 30, 2005.
       [``(f) Availability of Amounts.--Amounts made available by 
     or appropriated under subsections (a), (b), and (e) shall 
     remain available until expended.''.

     [SEC. 3037. NATIONAL PARKS AND PUBLIC LANDS LEGACY PROJECT.

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

     [``Sec. 5316. National parks and public lands Legacy Project

       [``(a) In General.--
       [``(1) The Secretary of Transportation, in consultation 
     with the Secretary of the Interior, may make a grant or enter 
     into a contract, cooperative agreement, interagency 
     agreement, intra-agency 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 the 
     disabled, 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.
       [``(2) A grant, cooperative agreement, interagency 
     agreement, intra-agency 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

[[Page 784]]

     may prescribe limiting the grant or agreement to leasing 
     arrangements that are more cost-effective than purchase or 
     construction.
       [``(b) Definitions.--In this section--
       [``(1) `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' means a Federal 
     agency that manages an eligible area.
       [``(3) `public 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' 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' 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, or 
     5304;
       [``(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 public 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 public 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).
       [``(6) `Secretary' means the Secretary of Transportation.
       [``(c) Limitation on Use of Available Amounts.--
       [``(1) 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)(G) 
     to carry out planning, research, and technical assistance 
     under this section, including the development of technology 
     appropriate for use in a qualified project.
       [``(2) 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) 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)(G) for any fiscal year.
       [``(d) 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.
       [``(e) Cost Sharing.--
       [``(1) The Secretary, in cooperation with the Secretary of 
     the Interior, shall establish the share of assistance to be 
     provided under this section to a qualified participant.
       [``(2) In establishing the share of assistance 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 remainder of the cost of a qualified 
     project.
       [``(f) 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;
       [``(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.
       [``(g) 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.
       [``(h) Relationship to Other Laws.--
       [``(1) A qualified participant under this section is 
     subject to the requirements of section 5307 of this title to 
     the extent the Secretary considers appropriate.
       [``(2) Section 5333(b) of this title shall apply, provided 
     that the Secretary of Labor shall utilize a Special Warranty 
     that provides a fair and equitable arrangement to protect the 
     interest of employees.

[[Page 785]]

       [``(3) The Secretary may waive the applicability of the 
     Special Warranty under paragraph (B) for private non-profit 
     subrecipients on a case-by-case basis as the Secretary deems 
     appropriate
       [``(4) 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.
       [``(5) If the amount of assistance anticipated to be 
     required for a qualified project under this section is 
     $75,000,000 or more, the qualified participant shall prepare 
     a project management plan in accordance with sections 5327(a) 
     and (b) of this title.
       [``(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).''.
       [(b) Conforming Amendments.--The table of sections for 
     chapter 53 is amended by inserting after the item relating to 
     section 5315 the following:

[``5316. National parks and public lands Legacy Project.''.

     [SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILTY PROGRAM.

       [(a) Section 3038 of the Transportation Equity Act for the 
     21st Century, Public Law 105-178, is amended--
       [(1) by striking the section heading and inserting the 
     following: ``OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.'';
     and
       [(2) by revising subsection (g) to read as follows:
       [``(g) Funding.--
       [``(1) Of the amounts made available by or appropriated 
     under section 5338(a)(2)(E) in each fiscal year, 75 percent 
     shall be available for operators of over-the-road buses used 
     substantially or exclusively in intercity, fixed-route over-
     the-road bus service to finance the incremental capital and 
     training costs of the Department of Transportation's final 
     rule regarding accessibility of over-the-road buses. Such 
     amounts shall remain available until expended.
       [``(2) Of the amounts made available by or appropriated 
     under section 5338(a)(2)(E) in each fiscal year, 25 percent 
     shall be available for operators of other over-the-road bus 
     service to finance the incremental capital and training costs 
     of the Department of Transportation's final rule regarding 
     accessibility of over-the-road buses. Such amounts shall 
     remain available until expended.''.
       [(b) Conforming Amendments.--The item relating to section 
     3038 in the table of sections for the Transportation Equity 
     Act for the 21st Century is amended to read as follows:

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

     [SEC. 3039. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY 
                   INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES.

       [(a) In General.--Section 5310 is amended to read as 
     follows:
       [``(a) General Authority.--
       [``(1) The Secretary may make grants to a State under this 
     section for capital public transportation projects planned, 
     designed, and carried out to meet the special needs of 
     elderly individuals and individuals with disabilities. A 
     State may then allocate the funds to--
       [``(A) a private non-profit organization; or
       [``(B) a governmental authority--
       [``(i) approved by the State to coordinate services for 
     elderly individuals and individuals with disabilities; or
       [``(ii) that certifies that there are not any nonprofit 
     organizations readily available in the area to provide the 
     services described under this paragraph.
       [``(2) A capital public transportation project under this 
     section may include acquiring public transportation services 
     as an eligible capital expense.
       [``(3) A State may use not more than 15 percent of the 
     amounts apportioned under this section to administer, plan 
     and provided technical assistance for a project funded under 
     this section.
       [``(b) Apportionments.--
       [``(1) The Secretary shall apportion amounts made available 
     under section 5338(a)(2)(M) of this title under a formula the 
     Secretary administers that considers the number of elderly 
     individuals and individuals with disabilities in each State.
       [``(2) The recipient may transfer any funds apportioned to 
     it under this subsection to sections 5311(c) or 5336. Any 
     funds transferred pursuant to this subsection shall be made 
     available only for eligible projects selected under this 
     section.
       [``(c) Government's Share.--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. 
     The remainder--
       [``(1) may be provided from an undistributed cash surplus, 
     a replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       [``(2) may be derived from amounts appropriated to or made 
     available to a department or agency of the Federal government 
     (other than the Department of Transportation, except for 
     Federal Land Highway funds) that are eligible to be expended 
     for transportation.
       [``(3) 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 shall not apply 
     to federal or state funds to be used for transportation 
     purposes.
       [``(d) Grant Requirements.--
       [``(1) A recipient of a grant under this section is subject 
     to all requirements of a grant under section 5307 of this 
     title to the extent the Secretary considers appropriate.''.
       [``(2) A recipient that transfers funds to section 5336 
     pursuant to subsection (b)(2) shall certify that the project 
     for which the funds are requested has been coordinated with 
     private non-profit providers of services under this section.
       [``(3) A recipient of funds under this section shall 
     certify that--
       [``(A) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       [``(B) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public;
       [``(4) A recipient of a grant under this section shall 
     certify that allocations of the grant to subrecipients are 
     distributed on a fair and equitable basis.
       [``(e) State Program of Projects.--Amounts made available 
     to carry out this subsection may be used for transportation 
     projects to assist in providing transportation services for 
     elderly individuals and individuals with disabilities that 
     are included in a State program of projects. A program shall 
     be submitted annually to the Secretary for approval and shall 
     contain an assurance that the program provides for maximum 
     feasible coordination of transportation services assisted 
     under this section with transportation services assisted by 
     other United States Government sources.
       [``(f) Leasing Vehicles.--Vehicles acquired under this 
     section may be leased to local governmental authorities to 
     improve transportation services designed to meet the special 
     needs of elderly individuals and individuals with 
     disabilities.
       [``(g) Homebound Individuals.--Public transportation 
     service providers receiving assistance under this section or 
     5311(c) of this title 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 currently having a facility or 
     equipment acquired with assistance 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 chapter does not require 
     that elderly individuals and individuals with disabilities be 
     charged a fare.''.

     [SEC. 3040. JOB ACCESS AND REVERSE COMMUTE.

       [(a) Section 5308 is amended to read as follows:

     [``Sec. 5308. Formula grants for job access and reverse 
       commute projects

       [``(a) Definitions.--In this section,
       [``(1) `recipient' means a State that receives a grant 
     under this section directly; and
       [``(2) `subrecipient' means a State or local public 
     authority, a nonprofit organization, or a private operator of 
     public transportation service that may receive a grant under 
     this section indirectly through a recipient, rather than 
     directly from the Federal Government.''.
       [``(b) General Authority.--

[[Page 786]]

       [``(1) The Secretary may make grants to a recipient under 
     this section for access to jobs and reverse commute projects 
     to a recipient.
       [``(2) A recipient may use not more than 15 percent of the 
     amounts apportioned under this section to administer, plan, 
     and provide technical assistance for a project funded under 
     this section.
       [``(c) Apportionments.--
       [``(1) The Secretary shall apportion amounts made available 
     under section 5338(a)(2)(M) of this title under a formula the 
     Secretary administers that considers the number of low income 
     people in each State.
       [``(2) The recipient may transfer any funds apportioned to 
     it under this subsection to sections 5311(c) or 5336. Any 
     apportionment transferred pursuant to this subsection shall 
     be made available for eligible job access and reverse commute 
     projects under this section.
       [``(d) Grant Requirements.--
       [``(1) A grant under this section is subject to the 
     requirements of 5307 to the extent the Secretary considers 
     appropriate.
       [``(2) Section 5333(b) of this title shall apply, provided 
     that the Secretary of Labor shall utilize a Special Warranty 
     that provides a fair and equitable arrangement to protect the 
     interest of employees.
       [``(3) The Secretary may waive the applicability of the 
     Special Warranty under paragraph (2) for private non-profit 
     subrecipients on a case-by-case basis as the Secretary deems 
     appropriate.
       [``(4) A recipient of a grant under this section shall 
     certify that allocations of the grant to subrecipients are 
     distributed on a fair and equitable basis.
       [``(e) Competitive Process.--
       [``(1) The recipient shall conduct a statewide solicitation 
     for applications for grants under this section.
       [``(2) Subrecipients seeking to receive a grant under this 
     section shall submit to the recipient an application in the 
     form and in accordance with such requirements as the 
     recipient shall establish.
       [``(3) Subrecipients submitting applications pursuant to 
     paragraph (2) shall be selected on a competitive basis.
       [``(f) Coordination.--
       [``(1) The Secretary shall coordinate activities under this 
     section with related activities under programs of other 
     Federal departments and agencies.
       [``(2) A recipient that transfers funds to section 5336 
     pursuant to subsection (c)(2) shall certify that the project 
     for which the funds are requested has been coordinated with 
     private non-profit providers of services under this section.
       [``(3) A recipient of funds under this section shall 
     certify that--
       [``(A) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       [``(B) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public;
       [``(g) Government's Share of Costs.--
       [``(1) 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. 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. The remainder--
       [``(A) may be provided from an undistributed cash surplus, 
     a replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       [``(B) may be derived from amounts appropriated to or made 
     available to a department or agency of the Federal Government 
     (other than the Department of Transportation, except for 
     Federal Land Highway funds) that are eligible to be expended 
     for transportation.
       [``(2) A recipient carrying out a program of operating 
     assistance under this section may not limit the level or 
     extent of use of the Government grant for the payment of 
     operating expenses.
       [``(3) For purposes of paragraph (1)(B) of this section, 
     the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(c)(vii) of the Social 
     Security Act shall not apply to Federal or State funds to be 
     used for transportation purposes.''
       [(b) Conforming Amendment.--The table of sections for 
     chapter 53 is amended after the item relating to section 5307 
     to read as follows:

[``5308. Formula grants for job access and reverse commute projects.''.

                    [TITLE IV--MOTOR CARRIER SAFETY

     [SEC. 4001. AUTHORIZATION OF APPROPRIATIONS.

     [  (a) Administrative Expenses.--Section 31104 of title 49, 
     United States Code, is amended by adding the following at the 
     end:
       [``(i) Administrative Expenses.--
       [``(1) There are authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     the Secretary of Transportation to pay administrative 
     expenses of the Federal Motor Carrier Safety Administration--
       [``(A) $224,406,000 for fiscal year 2004;
       [``(B) $228,000,000 for fiscal year 2005;
       [``(C) $233,000,000 for fiscal year 2006;
       [``(D) $239,000,000 for fiscal year 2007;
       [``(E) $244,000,000 for fiscal year 2008; and
       [``(F) $250,000,000 for fiscal year 2009.
       [``(2) The funds authorized by this subsection shall be 
     used for personnel costs; administrative infrastructure; 
     rent; information technology; programs for research and 
     technology, information management, regulatory development 
     (including a medical review board and rules for medical 
     examiners), performance and registration information system 
     management (PRISM), a study of driver availability and 
     retention, and outreach and education; other operating 
     expenses and similar matters; and such other expenses as may 
     from time to time become necessary to implement statutory 
     mandates not funded from other sources.
       [``(3) The amounts made available under this section shall 
     remain available until expended.
       [``(4) Authorizations from the Highway Trust Fund (other 
     than the Mass Transit Account) to carry out subtitle IV, part 
     B, and subtitle VI, part B, of this title, or the provisions 
     of subtitle IV of the `Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003', shall be 
     available for obligation on the date of their apportionment 
     or allocation or on October 1 of the fiscal year for which 
     they are authorized, whichever occurs first.''.
       [(b) Amendment to Title 23.--Section 104(a)(1) of title 23, 
     United States Code, is amended by--
       [(1) deleting subparagraph (B);
       [(2) deleting the designation ``(A)'' at the beginning of 
     subparagraph (A) and redesignating subparagraphs (A)(i) and 
     (ii) as subparagraphs (A) and (B), respectively; and
       [(3) deleting ``; and'' at the end of subparagraph (B), as 
     so redesignated, and inserting a period.
       [(c) Grant Programs.--There are authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) for the following Federal Motor Carrier 
     Safety Administration programs--
       [(1) Commercial driver's license/driver improvement program 
     grants under section 4002(c)--
       [(A) $22,000,000 for fiscal year 2004;
       [(B) $22,000,000 for fiscal year 2005;
       [(C) $23,000,000 for fiscal year 2006;
       [(D) $23,000,000 for fiscal year 2007;
       [(E) $24,000,000 for fiscal year 2008; and
       [(F) $25,000,000 for fiscal year 2009.
       [(2) Border enforcement grants under section 4002(b)--
       [(A) $ 32,000,000 for fiscal year 2004;
       [(B) $ 33,000,000 for fiscal year 2005;
       [(C) $ 33,000,000 for fiscal year 2006;
       [(D) $ 34,000,000 for fiscal year 2007;
       [(E) $ 35,000,000 for fiscal year 2008; and
       [(F) $ 36,000,000 for fiscal year 2009.
       [(3) Performance and registration information system 
     management (PRISM) grant program under section 4016--
       [(A) $4,000,000 for fiscal year 2004;
       [(B) $4,000,000 for fiscal year 2005;
       [(C) $4,000,000 for fiscal year 2006;
       [(D) $4,000,000 for fiscal year 2007;
       [(E) $4,000,000 for fiscal year 2008; and
       [(F) $4,000,000 for fiscal year 2009.
       [(d) Period of Availability.--The amounts made available 
     under subsection (c) of this section shall remain available 
     until expended.
       [(e) Contract Authority.--Authorizations from the Highway 
     Trust Fund (other than the Mass Transit Account) to carry out 
     subsection (c) of this section shall be available for 
     obligation on the date of their apportionment or allocation 
     or on October 1 of the fiscal year for which they are 
     authorized, whichever occurs first. Approval by the Secretary 
     of a grant with funds made available under subsection (c) of 
     this section imposes upon the United States Government a 
     contractual obligation for payment of the Government's share 
     of costs incurred in carrying out the objectives of the 
     grant.

     [SEC. 4002. MOTOR CARRIER SAFETY GRANTS.

       [(a) Motor Carrier Safety Assistance Program.--
       [(1) Section 31102 of title 49, United States Code, is 
     amended--
       [(A) in subsection (b)(1), by amending paragraph (A) to 
     read as follows:
       [``(A) implements performance-based activities.'';
       [(B) in subsection (b)(1), by deleting ``and'' at the end 
     of paragraph (S), replacing the period at the end of 
     paragraph (T) with a semicolon, and adding new paragraphs (U) 
     and (V), to read as follows:
       [``(U) provides that the State will include in the training 
     manual for the licensing examination to drive a non-
     commercial motor vehicle and a commercial motor vehicle, 
     information on best practices for driving safely in the 
     vicinity of commercial motor vehicles and in the vicinity of 
     non-commercial vehicles, respectively; and
       [``(V) provides that the State will enforce the 
     registration requirements of 49 U.S.C. 13902 by placing out 
     of service any vehicle discovered to be operating without 
     registration or beyond the scope of its registration.''; and
       [(C) by revising subsection (c) to read as follows:
       [``(c) Use of Grants To Enforce Other Laws.--A State may 
     use amounts received

[[Page 787]]

     under a grant under subsection (a) of this section for the 
     following activities:
       [``(1) If the activities are carried out in conjunction 
     with an appropriate inspection of the commercial motor 
     vehicle to enforce Government or State commercial motor 
     vehicle safety regulations:
       [``(A) Enforcement of commercial motor vehicle size and 
     weight limitations at locations other than fixed weight 
     facilities, at specific locations such as steep grades or 
     mountainous terrains where the weight of a commercial motor 
     vehicle can significantly affect the safe operation of the 
     vehicle, or at ports where intermodal shipping containers 
     enter and leave the United States.
       [``(B) Detection of the unlawful presence of a controlled 
     substance (as defined under section 102 of the Comprehensive 
     Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
     802)) in a commercial motor vehicle or on the person of any 
     occupant (including the operator) of the vehicle.
       [``(2) Documented enforcement of State traffic laws and 
     regulations designed to promote the safe operation of 
     commercial motor vehicles, including documented enforcement 
     of such laws and regulations against non-commercial motor 
     vehicles when necessary to promote the safe operation of 
     commercial motor vehicles.''.
       [(2) Section 31103(b) of title 49, United States Code, is 
     amended to read as follows:
       [``(b) Other Activities.--
       [``(1) From the amounts designated under section 
     31104(f)(2), the Secretary may make a grant to a State 
     agency, local government, or other person for the full cost 
     of research, development, demonstration projects, public 
     education, and other special activities and projects relating 
     to commercial motor vehicle safety that are of benefit to all 
     jurisdictions or designed to address national safety concerns 
     and circumstances.
       [``(2) From the amounts designated under section 
     31104(f)(3), the Secretary may allocate safety performance 
     incentive funds to States without requiring a matching 
     contribution from such States.
       [``(3) From the amounts designated under section 
     31104(f)(4), the Secretary may allocate new entrant motor 
     carrier audit funds to States and local governments without 
     requiring a matching contribution from such States or local 
     governments. However, the Secretary may withhold such funds 
     from a State or local government that is unable to use 
     government employees to conduct new entrant motor carrier 
     audits, and may instead utilize the funds directly to conduct 
     audits in those jurisdictions.''.
       [(3) Section 31104(a) of title 49, United States Code, is 
     amended to read as follows:
       [``(a) In General.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out section 31102:
       [``(1) Not more than $164,594,000 for fiscal year 2004.
       [``(2) Not more than $168,000,000 for fiscal year 2005.
       [``(3) Not more than $172,000,000 for fiscal year 2006.
       [``(4) Not more than $176,000,000 for fiscal year 2007.
       [``(5) Not more than $180,000,000 for fiscal year 2008.
       [``(6) Not more than $184,000,000 for fiscal year 2009.''.
       [(4) Section 31104(f) is amended by revising paragraph (2) 
     and adding new paragraphs (3) and (4), to read as follows:
       [``(2) High-priority activities.--The Secretary may 
     designate up to 10 percent of amounts available for 
     allocation under paragraph (1) for States, local governments, 
     and other persons for carrying out high priority activities 
     and projects that improve commercial motor vehicle safety and 
     compliance with commercial motor vehicle safety regulations, 
     including activities and projects that are national in scope, 
     increase public awareness and education, or demonstrate new 
     technologies. The amounts designated under this paragraph 
     shall be allocated by the Secretary to State agencies, local 
     governments, and other persons that use and train qualified 
     officers and employees in coordination with State motor 
     vehicle safety agencies. Allocations under this paragraph do 
     not require a matching contribution from a State, local 
     government, or other person.
       [``(3) Safety performance incentive programs.--The 
     Secretary may designate up to 10 percent of the amounts 
     available for allocation under paragraph (1) for safety 
     performance incentive programs for States. The Secretary 
     shall establish safety performance criteria to be used to 
     distribute incentive program funds. Such criteria shall 
     include, at a minimum, reduction in the number and rate of 
     fatal accidents involving commercial motor vehicles. 
     Allocations under this paragraph do not require a matching 
     contribution from a State.
       [``(4) New entrant audits.--The Secretary may designate up 
     to $17,000,000 of the amounts available for allocation under 
     paragraph (1) for audits of new entrant motor carriers 
     conducted pursuant to section 210 of the Motor Carrier Safety 
     Improvement Act of 1999, 113 Stat. 1764. Allocations under 
     this paragraph do not require a matching contribution from a 
     State or local government.''.
       [(b) Grants to States for Border Enforcement.--Chapter 311 
     of title 49, United States Code, is amended by revising 
     section 31107 to read as follows:

     [``Sec. 31107. Border enforcement grants

       [``(a) General Authority.--From the funds authorized by 
     sections 4001(c)(2) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the Secretary 
     may make a grant in a fiscal year to a State, except as 
     otherwise provided in subsection (c), that shares a border 
     with another country for carrying out border commercial motor 
     vehicle safety programs and related enforcement activities 
     and projects.
       [``(b) Maintenance of Expenditures.--Except as otherwise 
     provided in subsection (c), the Secretary may make a grant to 
     a State under this section only if the State agrees that the 
     total expenditure of amounts of the State and political 
     subdivisions of the State, exclusive of United States 
     Government amounts, for carrying out border commercial motor 
     vehicle safety programs and related enforcement activities 
     and projects will be maintained at a level at least equal to 
     the average level of that expenditure by the State and 
     political subdivisions of the State for the last two State or 
     Federal fiscal years before October 1, 2003.
       [``(c) Government Share.--The Secretary may make a grant to 
     a State agency, local government, or other person for the 
     full cost of research, development, demonstration projects, 
     public education, and other special activities and projects 
     relating to cross-border operations of commercial motor 
     vehicles that are beneficial to all jurisdictions or designed 
     to address national safety concerns and circumstances.
       [``(d) Availability of Amounts.--Amounts made available to 
     a State under section 4001(c)(2) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 to 
     carry out this section shall remain available until expended.
       [``(e) Grants as Contractual Obligations.--Approval by the 
     Secretary of a grant with funds made available under section 
     4001(c)(2) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003 imposes upon the United 
     States Government contractual obligation for payment of the 
     amount of the grant.''.
       [(c) Grants to States for Commercial Driver's License 
     Improvements.--Chapter 313 of title 49, United States Code, 
     is amended by adding new section 31318 at the end, to read as 
     follows:

     [``Sec. 31318. Grants for commercial driver's license program 
       improvements

       [``(a) General Authority.--From the funds authorized by 
     section 4001(c)(1) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the Secretary 
     may make a grant to a State, except as otherwise provided in 
     subsection (e), in a fiscal year to improve its 
     implementation of the commercial driver's license program, 
     providing the State is in substantial compliance with the 
     requirements of section 31311 and this section. The Secretary 
     shall establish criteria for the distribution of grants and 
     notify the States annually of such criteria.
       [``(b) Conditions.--Except as otherwise provided in 
     subsection (e), a State may use a grant under this section 
     only for expenses directly related to its commercial driver's 
     license program, including, but not limited to, computer 
     hardware and software, publications, testing, personnel, 
     training, and quality control. The grant may not be used to 
     rent, lease, or buy land or buildings. The Secretary may 
     allocate the funds appropriated for such grants in a fiscal 
     year among the eligible States whose applications for grants 
     have been approved, under criteria that best serve the 
     purposes of this section.
       [``(c) Maintenance of Expenditures.--Except as otherwise 
     provided in subsection (e), the Secretary may make a grant to 
     a State under this section only if the State agrees that the 
     total expenditure of amounts of the State and political 
     subdivisions of the State, exclusive of United States 
     Government amounts, for the operation of the commercial 
     driver's license program will be maintained at a level at 
     least equal to the average level of that expenditure by the 
     State and political subdivisions of the State for the last 2 
     fiscal years before October 1, 2003
       [``(d) Government Share.--Except as otherwise provided in 
     subsection (e), the Secretary shall reimburse a State, from a 
     grant made under this section, an amount that is not more 
     than 80 percent of the costs incurred by the State in a 
     fiscal year in implementing the commercial driver's license 
     improvements described in subsection (b). In determining 
     those costs, the Secretary shall include in-kind 
     contributions by the State. Amounts of the State required to 
     be expended under subsection (c) may not be included as part 
     of the share not provided by the United States Government.
       [``(e) High-Priority Activities.--
       [``(1) The Secretary may make a grant to a State agency, 
     local government, or other person for the full cost of 
     research, development, demonstration projects, public 
     education, or other special activities and projects relating 
     to commercial driver licensing and motor vehicle safety that 
     are of benefit to all jurisdictions or designed to address 
     national safety concerns and circumstances.

[[Page 788]]

       [``(2) The Secretary may designate up to 10 percent of the 
     amounts made available under section 4001(c)(1) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 in a fiscal year for high-priority activities 
     under subsection (e)(1).
       [``(f) Emerging Issues.--The Secretary may designate up to 
     25 percent of the amounts made available under section 
     4001(c)(1) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003 in a fiscal year for 
     allocation to a State agency, local government, or other 
     person at the discretion of the Secretary to address emerging 
     issues relating to commercial driver's license improvements.
       [``(g) Government Share.--Except as otherwise provided in 
     subsections (e) and (f), all amounts available in a fiscal 
     year to carry out this section shall be apportioned to States 
     according to a formula prescribed by the Secretary.
       [``(h) Deduction for Administrative Expenses.--On October 1 
     of each fiscal year or as soon after that date as 
     practicable, the Secretary may deduct, from amounts made 
     available under section 4001(c)(1) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 for 
     that fiscal year, up to 1.25 percent of those amounts for 
     administrative expenses incurred in carrying out this section 
     in that fiscal year.
       [``(i) Availability of Amounts.--Amounts made available to 
     a State under section 4001(c)(1) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 to 
     carry out this section shall remain available until expended.
       [``(j) Grants as Contractual Obligations.--Approval by the 
     Secretary of a grant with funds made available under section 
     4001(c)(1) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003 imposes upon the United 
     States Government a contractual obligation for payment of the 
     amount of the grant.''.
       [(d) Noncompliance With CDL Requirements.--Subsections (a) 
     and (b) of section 31314 of title 49, United States Code, are 
     amended to read as follows:
       [``(a) First Fiscal Year.--The Secretary of Transportation 
     shall withhold up to 5 percent of the amount required to be 
     apportioned to a State under section 104(b)(1), (3), and (4) 
     of title 23 on the first day of the fiscal year after the 
     first fiscal year beginning after September 30, 1992, 
     throughout which the State does not comply substantially with 
     a requirement of section 31311(a) of this title.
       [``(b) Second Fiscal Year.--The Secretary shall withhold up 
     to 10 percent of the amount required to be apportioned to a 
     State under section 104(b)(1), (3), and (4) of title 23 on 
     the first day of each fiscal year after the 2d fiscal year 
     beginning after September 30, 1992, throughout which the 
     State does not comply substantially with a requirement of 
     section 31311(a) of this title.''.
       [(e) Conforming Amendments--
       [(1) The table of sections at the beginning of chapter 311 
     of title 49, United States Code, is amended by--
       [(A) revising the heading of Subchapter I to read as 
     follows:

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

     [and
       [(B) revising the item relating to section 31107 to read as 
     follows:

[``31107. Border enforcement grants.''.

       [(2) Chapter 311 of title 49, United States Code, is 
     amended following the table of sections by striking--

                    [``SUBCHAPTER I--STATE GRANTS''

     [and substituting--

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

       [(3) The table of sections at the beginning of chapter 313 
     of title 49, United States Code, is amended after the item 
     relating to section 31317 by adding the following:

[``31318. Grants for commercial driver's license program 
              improvements.''.

     [SEC. 4003. HOBBS ACT.

       [(a) Section 2342(3)(A) of title 28, United States Code, is 
     amended to read as follows:
       [``(A) the Secretary of Transportation issued pursuant to 
     section 2, 9, 37, or 41 of the Shipping Act, 1916 (46 U.S.C. 
     App. 802, 803, 808, 835, 839, and 841a) or pursuant to part B 
     or C of subtitle IV of title 49 [49 U.S.C. chapters 131-161] 
     or pursuant to subchapter III of chapter 311, chapter 313, 
     and chapter 315 of part B of subtitle VI of title 49; and''.
       [(b) Section 351(a) of title 49, United States Code, is 
     amended to read as follows:
       [``(a) Judicial Review.--An action of the Secretary of 
     Transportation in carrying out a duty or power transferred 
     under the Department of Transportation Act (Public Law 89-
     670, 80 Stat. 931), or an action of the Administrator of the 
     Federal Railroad Administration, Federal Motor Carrier Safety 
     Administration, or the Federal Aviation Administration in 
     carrying out a duty or power specifically assigned to the 
     Administrator by that Act, may be reviewed judicially to the 
     same extent and in the same way as if the action had been an 
     action by the department, agency, or instrumentality of the 
     United States Government carrying out the duty or power 
     immediately before the transfer or assignment.''.
       [(c) Section 352 of title 49, United States Code, is 
     amended to read as follows:

     [``Sec. 352. Authority to carry out certain transferred 
       duties and powers

       [``In carrying out a duty or power transferred under the 
     Department of Transportation Act (Public Law 89-670, 80 Stat. 
     931), the Secretary of Transportation and the Administrators 
     of the Federal Railroad Administration, the Federal Motor 
     Carrier Safety Administration, and the Federal Aviation 
     Administration have the same authority that was vested in the 
     department, agency, or instrumentality of the United States 
     Government carrying out the duty or power immediately before 
     the transfer. An action of the Secretary or Administrator in 
     carrying out the duty or power has the same effect as when 
     carried out by the department, agency, or instrumentality.''.

     [SEC. 4004. PENALTY FOR DENIAL OF ACCESS TO RECORDS.

       [Section 521(b)(2) of title 49, United States Code, is 
     amended by adding new subparagraph (E) at the end, to read as 
     follows:
       [``(E) Copying of records and access to equipment, lands, 
     and buildings.--A person subject to chapter 51 of subtitle 
     III, Part B of Subtitle IV, or Part B of Subtitle VI of this 
     title who fails to allow the Secretary, or an employee 
     designated by the Secretary, promptly upon demand to inspect 
     and copy any record or inspect and examine equipment, lands, 
     buildings and other property in accordance with sections 
     504(c), 5121(c), and 14122(b) of this title shall be liable 
     to the United States for a civil penalty not to exceed $500 
     for each offense, and each day the Secretary is denied the 
     right to inspect and copy any record or inspect and examine 
     equipment, lands, buildings and other property shall 
     constitute a separate offense, except that the total of all 
     civil penalties against any violator for all offenses related 
     to a single violation shall not exceed $5,000. It shall be a 
     defense to such penalty that the records did not exist at the 
     time of the Secretary's request or could not be timely 
     produced without unreasonable expense or effort. Nothing 
     herein amends or supersedes any remedy available to the 
     Secretary under sections 502(d), 507(c), or other provision 
     of this title.''.

     [SEC. 4005. MEDICAL REVIEW BOARD AND MEDICAL EXAMINERS.

       [(a) Medical Review Board.--
       [(1) Establishment and function.--The Federal Motor Carrier 
     Safety Administrator shall establish a Medical Review Board 
     as an advisory committee to provide the Federal Motor Carrier 
     Safety Administration with medical advice and recommendations 
     on driver qualification medical standards and guidelines, 
     medical examiner education, and medical research.
       [(2) Composition.--The Medical Review Board shall be 
     appointed by the Secretary and shall consist of 5 members 
     selected from medical institutions and private practice. The 
     membership shall reflect expertise in a variety of 
     specialties relevant to the functions of the Federal Motor 
     Carrier Safety Administration.
       [(3) Termination date.--The Medical Review Board shall 
     remain in effect until September 30, 2009.
       [(b) Medical Examiners.--Section 31136(a)(3) of title 49, 
     United States Code, is amended to read as follows:
       [``(3) the physical condition of operators of commercial 
     motor vehicles is adequate to enable them to operate the 
     vehicles safely, and the periodic physical examinations 
     required of such operators are performed by medical examiners 
     who have received training in physical and medical 
     examination standards and are listed on a national registry 
     maintained by the Department of Transportation;''.

     [SEC. 4006. ENFORCEMENT OF HOUSEHOLD GOODS REGULATIONS.

       [(a) Dispute Settlement Program for Household Goods 
     Carriers.--
       [(1) Section 14708(a) of title 49, United States Code, is 
     amended to read as follows:
       [``(a) Shipper Arbitration.--
       [``(1) As a condition of registration under section 13902 
     or 13903, a carrier providing transportation of household 
     goods subject to jurisdiction under subchapter I or III of 
     chapter 135 must agree to offer in accordance with this 
     section to shippers of household goods arbitration as a means 
     of settling disputes between such carriers and shippers. 
     However, the carrier may not require the shipper to agree to 
     use arbitration prior to the time that a dispute arises.
       [``(2) If the dispute involves a claim for $5,000 or less 
     and the shipper requests arbitration, such arbitration shall 
     be binding on the parties. If the dispute involves a claim 
     for more than $5,000 and the shipper requests arbitration, 
     such arbitration shall be binding on the parties only if the 
     carrier agrees to arbitration.''.
       [(2) Subsection (b)(6) of section 14708 is deleted, and 
     subsections (b)(7) and (b)(8) are redesignated as subsections 
     (b)(6) and (b)(7), respectively.
       [(b)(1) Chapter 147 of title 49, United States Code, is 
     amended by adding new section 14710 at the end, to read as 
     follows:

     [``Sec. 14710. Enforcement by State attorneys general

       [``(a) In General.--A State, as parens patriae, may bring a 
     civil action on behalf of its residents in an appropriate 
     district court

[[Page 789]]

     of the United States to enforce this part, or a regulation or 
     order of the Secretary or Board, as applicable, or to impose 
     the civil penalties authorized by this part or such 
     regulation or order, whenever the attorney general of the 
     State has reason to believe that the interests of the 
     residents of the State have been or are being threatened or 
     adversely affected by (1) a carrier or broker providing 
     transportation subject to jurisdiction under subchapter I or 
     III of chapter 135 of this title, or (2) a foreign motor 
     carrier providing transportation registered under section 
     13902 of this title, that is engaged in household goods 
     transportation that violates this part or a regulation or 
     order of the Secretary or Board, as applicable.
       [``(b) Notice.--The State shall serve prior written notice 
     of any civil action under subsection (a) or (e)(2) upon the 
     Secretary or Board, as applicable, and provide the Secretary 
     or Board with a copy of its complaint, except that if it is 
     not feasible for the State to provide such prior notice, the 
     State shall serve such notice immediately upon instituting 
     such action. Upon receiving a notice respecting a civil 
     action, the Secretary or Board shall have the right--
       [``(1) to intervene in such action;
       [``(2) upon so intervening, to be heard on all matters 
     arising therein; and
       [``(3) to file petitions for appeal.
       [``(c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this Act shall 
     prevent an attorney general from exercising the powers 
     conferred on the attorney general by the laws of such State 
     to conduct investigations or to administer oaths or 
     affirmations or to compel the attendance of witnesses or the 
     production of documentary and other evidence.
       [``(d) Venue; Service of Process.--In a civil action 
     brought under subsection (a) of this section--
       [``(1) trial is in the judicial district in which--
       [``(A) the carrier, foreign motor carrier, or broker 
     operates;
       [``(B) the carrier, foreign motor carrier, or broker was 
     authorized to provide transportation or service under this 
     part when the violation occurred; or
       [``(C) the offender is found;
       [``(2) process may be served without regard to the 
     territorial limits of the district or of the State in which 
     the action is instituted; and
       [``(3) a person participating with a carrier or broker in a 
     violation may be joined in the civil action without regard to 
     the residence of the person.
       [``(e) Actions by Other State Officials.--
       [``(1) Nothing contained in this section shall prohibit an 
     authorized State official from proceeding in State court on 
     the basis of an alleged violation of any criminal statute of 
     such State.
       [``(2) In addition to actions brought by an attorney 
     general of a State under subsection (a), such an action may 
     be brought by officers of such State who are authorized by 
     the State to bring actions in such State on behalf of its 
     residents.''.
       [(2) Conforming amendment.--The table of sections at the 
     beginning of chapter 147 of title 49, United States Code, is 
     amended by inserting after the item relating to section 14709 
     the following:

[``14710. Enforcement by State attorneys general.''.

     [SEC. 4007. REGISTRATION OF COMMERCIAL MOTOR CARRIERS, 
                   FREIGHT FORWARDERS, AND BROKERS.

       [(a) Sections 13102(6), (7), (12) and (13) of title 49, 
     United States Code, are amended to read as follows:
       [``(6) Foreign motor carrier.--The term `foreign motor 
     carrier' means a person (including a motor carrier of 
     property but excluding a motor private carrier)--
       [``(A)(i) that is domiciled in a contiguous foreign 
     country; or
       [``(ii) that is owned or controlled by persons of a 
     contiguous foreign country; and
       [``(B) in the case of a person that is not a motor carrier 
     of property, that provides interstate transportation of 
     property by commercial motor vehicle, as defined in section 
     31132(1) of this title, under an agreement or contract 
     entered into with a motor carrier of property (other than a 
     motor private carrier or a motor carrier of property 
     described in subparagraph (A)).
       [``(7) Foreign motor private carrier.--The term `foreign 
     motor private carrier' means a person (including a motor 
     private carrier but excluding a motor carrier of property)--
       [``(A)(i) that is domiciled in a contiguous foreign 
     country; or
       [``(ii) that is owned or controlled by persons of a 
     contiguous foreign country; and
       [``(B) in the case of a person that is not a motor private 
     carrier, that provides interstate transportation of property 
     by commercial motor vehicle, as defined in section 31132(1) 
     of this title, under an agreement or contract entered into 
     with a person (other than a motor carrier of property or a 
     motor private carrier described in subparagraph (A)).''
       [``(12) Motor carrier.--The term `motor carrier' means a 
     person providing transportation for compensation by 
     commercial motor vehicle, as defined in section 31132(1) of 
     this title.
       [``(13) Motor private carrier.--The term `motor private 
     carrier' means a person, other than a motor carrier, 
     transporting property by commercial motor vehicle, as defined 
     in section 31132(1) of this title, when--
       [``(A) the transportation is as provided in section 13501 
     of this title;
       [``(B) the person is the owner, lessee, or bailee of the 
     property being transported; and
       [``(C) the property is being transported for sale, lease, 
     rent, or bailment or to further a commercial enterprise.''.
       [(b) Section 13903(a) of title 49, United States Code, is 
     amended to read as follows:
       [``(a) In General.--
       [``(1) The Secretary of Transportation shall register a 
     person to provide service subject to jurisdiction under 
     subchapter III of chapter 135 as a freight forwarder of 
     household goods if the Secretary finds that the person is 
     fit, willing, and able to provide the service and to comply 
     with this part and applicable regulations of the Secretary 
     and the Board.
       [``(2) The Secretary may register a person to provide 
     service subject to jurisdiction under subchapter III of 
     chapter 135 as a freight forwarder if the Secretary finds 
     that such registration is needed for the protection of 
     shippers and that the person is fit, willing, and able to 
     provide the service and to comply with this part and 
     applicable regulations of the Secretary and Board.''.
       [(c) Section 13904(a) of title 49, United States Code, is 
     amended to read as follows:
       [``(a) In General.--
       [``(1) The Secretary of Transportation shall register, 
     subject to section 13906(b), a person to be a broker for 
     transportation of household goods subject to jurisdiction 
     under subchapter I of chapter 135, if the Secretary finds 
     that the person is fit, willing, and able to be a broker for 
     transportation of household goods and to comply with this 
     part and applicable regulations of the Secretary.
       [``(2) The Secretary may register, subject to section 
     13906(b), a person to be a broker for transportation of other 
     property subject to jurisdiction under subchapter I of 
     chapter 135, if the Secretary finds that such registration is 
     needed for the protection of shippers and that the person is 
     fit, willing, and able to be a broker for transportation and 
     to comply with this part and applicable regulations of the 
     Secretary.''.

     [SEC. 4008. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR 
                   CARRIERS.

       [(a)(1) Section 31138(a) of title 49, United States Code, 
     is amended to read as follows:
       [``(a) General Requirement.--The Secretary of 
     Transportation shall prescribe regulations to require minimum 
     levels of financial responsibility sufficient to satisfy 
     liability amounts established by the Secretary covering 
     public liability and property damage for the transportation 
     of passengers by motor vehicle in the United States between a 
     place in a State and--
       [``(1) a place in another State;
       [``(2) another place in the same State through a place 
     outside of that State; or
       [``(3) a place outside the United States.''.
       [(2) Section 31138(c) of title 49, United States Code, is 
     amended by adding paragraph (4) at the end, to read as 
     follows:
       [``(4) The Secretary may require a person, other than a 
     motor carrier as defined in section 13102(12) of this title, 
     transporting passengers by motor vehicle to file with the 
     Secretary the evidence of financial responsibility specified 
     in subsection (c)(1) of this section in an amount not less 
     than that required by this section, and the laws of the State 
     or States in which the person is operating, to the extent 
     applicable. The amount of the financial responsibility must 
     be sufficient to pay, not more than the amount of the 
     financial responsibility, for each final judgment against the 
     person for bodily injury to, or death of, an individual 
     resulting from the negligent operation, maintenance, or use 
     of motor vehicles, or for loss or damage to property, or 
     both.''.
       [(b)(1) Section 31139(b)(1) of title 49, United States 
     Code, is amended to read as follows:
       [``(b) General Requirements and Minimum Amount.--
       [``(1) The Secretary of Transportation shall prescribe 
     regulations to require minimum levels of financial 
     responsibility sufficient to satisfy liability amounts 
     established by the Secretary covering public liability, 
     property damage, and environmental restoration for the 
     transportation of property by motor vehicle in the United 
     States between a place in a State and--
       [``(A) a place in another State;
       [``(B) another place in the same State through a place 
     outside of that State; or
       [``(C) a place outside the United States.''.
       [(2) Subsections (c) through (g) of section 31139 of title 
     49, United States Code, are redesignated as subsections (d) 
     through (h), and new subsection (c) is inserted after 
     subsection (b), to read as follows:
       [``(c) Filing of Evidence of Financial Responsibility.--The 
     Secretary may require a motor private carrier, as defined in 
     section 13102 of this title, to file with the Secretary the 
     evidence of financial responsibility specified in subsection 
     (b) of this section in an amount not less than that required 
     by this

[[Page 790]]

     section, and the laws of the State or States in which the 
     motor private carrier is operating, to the extent applicable. 
     The amount of the financial responsibility must be sufficient 
     to pay, not more than the amount of the financial 
     responsibility, for each final judgment against the motor 
     private carrier for bodily injury to, or death of, an 
     individual resulting from negligent operation, maintenance, 
     or use of motor vehicles, or for loss or damage to property, 
     or both.''.

     [SEC. 4009. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS 
                   AND FALSE RECORDS.

       [(a) Section 521(b)(2)(B) of title 49, United States Code, 
     is amended to read as follows:
       [``(B) Recordkeeping and Reporting Violations.--A person 
     required to make a report to the Secretary, answer a 
     question, or make, prepare, or preserve a record under 
     section 504 of this title or under any regulation issued by 
     the Secretary pursuant to subchapter III of chapter 311 
     (except sections 31138 and 31139) or section 31502 of this 
     title about transportation by motor carrier, motor carrier of 
     migrant workers, or motor private carrier, or an officer, 
     agent, or employee of that person--
       [``(i) who does not make that report, does not 
     specifically, completely, and truthfully answer that question 
     in 30 days from the date the Secretary requires the question 
     to be answered, or does not make, prepare, or preserve that 
     record in the form and manner prescribed by the Secretary, 
     shall be liable to the United States for a civil penalty in 
     an amount not to exceed $1,000 for each offense, and each day 
     of the violation shall constitute a separate offense, except 
     that the total of all civil penalties assessed against any 
     violator for all offenses related to any single violation 
     shall not exceed $10,000; or
       [``(ii) who knowingly falsifies, destroys, mutilates, or 
     changes a required report or record, knowingly files a false 
     report with the Secretary, knowingly makes or causes or 
     permits to be made a false or incomplete entry in that record 
     about an operation or business fact or transaction, or 
     knowingly makes, prepares, or preserves a record in violation 
     of a regulation or order of the Secretary, shall be liable to 
     the United States for a civil penalty in an amount not to 
     exceed $10,000 for each violation, if any such action can be 
     shown to have misrepresented a fact that constitutes a 
     violation other than a reporting or recordkeeping 
     violation.''.
       [(b) Section 31310(i)(2) of title 49, United States Code, 
     is amended to read as follows:
       [``(2) The Secretary shall prescribe regulations 
     establishing sanctions and penalties related to violations of 
     out-of-service orders by individuals operating commercial 
     motor vehicles. The regulations shall require at least that--
       [``(A) an operator of a commercial motor vehicle found to 
     have committed a first violation of an out-of-service order 
     shall be disqualified from operating such a vehicle for at 
     least 180 days and liable for a civil penalty of at least 
     $2,500;
       [``(B) an operator of a commercial motor vehicle found to 
     have committed a second violation of an out-of-service order 
     shall be disqualified from operating such a vehicle for at 
     least 2 years and not more than 5 years and liable for a 
     civil penalty of at least $5,000;
       [``(C) an employer that knowingly allows or requires an 
     employee to operate a commercial motor vehicle in violation 
     of an out-of-service order shall be liable for a civil 
     penalty of not more than $25,000; and
       [``(D) an employer that knowingly and willfully allows or 
     requires an employee to operate a commercial motor vehicle in 
     violation of an out-of-service order shall, upon conviction, 
     be subject for each offense to imprisonment for a term not to 
     exceed one year or a fine under title 18, United States Code, 
     or both.''.

     [SEC. 4010. ELIMINATION OF COMMODITY AND SERVICE EXEMPTIONS.

       [(a) Section 13506(a) of title 49, United States Code, is 
     amended--
       [(1) by deleting paragraphs (2), (6), (11), (12), (13), and 
     (15); and
       [(2) by redesignating paragraphs (3), (4), (5), (7), (8), 
     (9), (10), and (14) as paragraphs (2), (3), (4), (5), (6), 
     (7), (8), and (9), respectively.
       [(b) The first sentence of section 13507 of title 49, 
     United States Code, is amended to read as follows: ``A motor 
     carrier of property providing transportation exempt from 
     jurisdiction under paragraph (6) of section 13506(a) may 
     transport property under such paragraph in the same vehicle 
     and at the same time as property which the carrier is 
     authorized to transport under a registration issued under 
     section 13902(a).''.

     [SEC. 4011. INTRASTATE OPERATIONS OF INTERSTATE MOTOR 
                   CARRIERS.

       [(a) Subsection (a) of section 31144 of title 49, United 
     States Code, is amended to read as follows:
       [``(a) In General.--The Secretary shall--
       [``(1) determine whether an owner or operator is fit to 
     operate safely commercial motor vehicles, utilizing among 
     other things the accident record of an owner or operator 
     operating in interstate commerce and the accident record and 
     safety inspection record of such owner or operator in 
     operations that affect interstate commerce;
       [``(2) periodically update such safety fitness 
     determinations;
       [``(3) make such final safety fitness determinations 
     readily available to the public; and
       [``(4) prescribe by regulation penalties for violations of 
     this section consistent with section 521.''.
       [(b) Subsection (c) of section 31144 of title 49, United 
     States Code, is amended by adding new paragraph (5) at the 
     end, to read as follows:
       [``(5) Transportation Affecting Interstate Commerce.--
     Owners or operators of commercial motor vehicles prohibited 
     from operating in interstate commerce pursuant to paragraphs 
     (1) through (3) of this section may not operate any 
     commercial motor vehicle that affects interstate commerce 
     until the Secretary determines that such owner or operator is 
     fit.''.
       [(c) Subsections (d) and (e) of section 31144 of title 49, 
     United States Code, are redesignated as subsections (e) and 
     (f), respectively, and new subsection (d) is added after 
     subsection (c), to read as follows:
       [``(d) Determination of Unfitness by a State.--If a State 
     that receives Motor Carrier Safety Assistance Program funds 
     pursuant to section 31102 of this title determines, by 
     applying the standards prescribed by the Secretary under 
     subsection (b) of this section, that an owner or operator of 
     commercial motor vehicles that has its principal place of 
     business in that State and operates in intrastate commerce is 
     unfit under such standards and prohibits the owner or 
     operator from operating such vehicles in the State, the 
     Secretary shall prohibit the owner or operator from operating 
     such vehicles in interstate commerce until the State 
     determines that the owner or operator is fit.''.

     [SEC. 4012. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.

       [(a) Chapter 2 of title 18, United States Code, is amended 
     by adding at the end new section 38, to read as follows:

     [``Sec. 38. Commercial motor vehicles required to stop for 
       inspections

       [``(a) A driver of a commercial motor vehicle, as defined 
     in 49 U.S.C. 31132(1), shall stop and submit to inspection of 
     the vehicle, driver, cargo, and required records when 
     directed to do so by a uniformed special agent of the Federal 
     Motor Carrier Safety Administration, Department of 
     Transportation, at or in the vicinity of an inspection site. 
     The driver shall not leave the inspection site until 
     authorized to do so by an agent.
       [``(b) A driver of a commercial motor vehicle, as defined 
     in subsection (a), who knowingly fails to stop for inspection 
     when directed to do so by a uniformed special agent of the 
     Federal Motor Carrier Safety Administration at or in the 
     vicinity of an inspection site, or leaves the inspection site 
     without authorization, shall be fined under this title or 
     imprisoned not more than one year, or both.''.
       [(b) Chapter 203 of title 18, United States Code, is 
     amended by adding at the end new section 3064, to read as 
     follows:

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

       [``Uniformed special agents of the Federal Motor Carrier 
     Safety Administration may direct a driver of a commercial 
     motor vehicle, as defined in 49 U.S.C. 31132(1), to stop for 
     inspection of the vehicle, driver, cargo, and required 
     records at or in the vicinity of an inspection site.''.
       [(c) Conforming Amendments.--
       [(1) The table of sections at the beginning of chapter 2 of 
     title 18, United States Code, is amended by inserting after 
     the item relating to section 37 the following:

[``38. Commercial motor vehicles required to stop for inspections.''.

       [(2) The table of sections at the beginning of chapter 203 
     of title 18, United States Code, is amended by inserting 
     after the item relating to section 3063 the following:

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

     [SEC. 4013. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER 
                   MANAGEMENT.

       [(a) Section 31135 of title 49, United States Code, is 
     amended by designating the existing text as subsection ``(a) 
     In General.--'' and adding new subsections (b), (c), (d), and 
     (e), to read as follows:
       [``(b) Pattern of Noncompliance.--If an officer of a motor 
     carrier engages in a pattern or practice of avoiding 
     compliance, or masking or otherwise concealing non-
     compliance, with regulations on commercial motor vehicle 
     safety prescribed under this subchapter, the Secretary may 
     suspend, amend, or revoke any part of the motor carrier's 
     registration under section 13905 of this title.
       [``(c) List of Proposed Officers.--Each person seeking 
     registration as a motor carrier under section 13902 of this 
     title shall submit a list of the proposed officers of the 
     motor carrier. If the Secretary determines that any of the 
     proposed officers has previously engaged in a pattern or 
     practice of avoiding compliance, or masking or otherwise 
     concealing non-compliance, with regulations on commercial 
     motor vehicle safety prescribed under this chapter, the 
     Secretary may deny the person's application for registration 
     as a motor carrier under section 13902(a)(3).
       [``(d) Regulations.--The Secretary shall by regulation 
     establish standards to implement subsections (b) and (c).
       [``(e) Definitions.--In this section --
       [``(1) `motor carrier' has the same meaning as in section 
     13102(12) of this title; and

[[Page 791]]

       [``(2) `officer' means an owner, chief executive officer, 
     chief operating officer, chief financial officer, safety 
     director, vehicle maintenance supervisor and driver 
     supervisor of a motor carrier, regardless of the title 
     attached to those functions.''.
       [(b) Section 13902(a)(1)(B) of title 49, United States 
     Code, is amended to read as follows:
       [``(B) any safety regulations imposed by the Secretary; the 
     duties of employers and employees established by the 
     Secretary under section 31135; and the safety fitness 
     requirements established by the Secretary under section 
     31144; and''.

     [SEC. 4014. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.

       [(a) In General.--Title 49, United States Code, is amended 
     by repealing section 31108 and inserting the following new 
     section, to read as follows:

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

       [``(a) Research, Technology and Technology Transfer 
     Activities.--
       [``(1) The Secretary of Transportation shall establish and 
     carry out a motor carrier research and technology program. 
     The Secretary may carry out research, development, 
     technology, and technology transfer activities with respect 
     to--
       [``(A) the causes of accidents, injuries and fatalities 
     involving commercial motor vehicles; and
       [``(B) means of reducing the number and severity of 
     accidents, injuries and fatalities involving commercial motor 
     vehicles.
       [``(2) The Secretary may test, develop, or assist in 
     testing and developing any material, invention, patented 
     article, or process related to the research and technology 
     program.
       [``(3) The Secretary may use the funds appropriated to 
     carry out this section for training or education of 
     commercial motor vehicle safety personnel, including, but not 
     limited to, training in accident reconstruction and detection 
     of controlled substances or other contraband, and stolen 
     cargo or vehicles.
       [``(4) The Secretary may carry out this section--
       [``(A) independently;
       [``(B) in cooperation with other Federal departments, 
     agencies, and instrumentalities and Federal laboratories; or
       [``(C) by making grants to, or entering into contracts, 
     cooperative agreements, and other transactions with, any 
     Federal laboratory, State agency, authority, association, 
     institution, for-profit or non-profit corporation, 
     organization, foreign country, or person.
       [``(5) The Secretary shall use funds made available to 
     carry out this section to develop, administer, communicate, 
     and promote the use of products of research, technology, and 
     technology transfer programs under this section.
       [``(b) Collaborative Research and Development.--
       [(1) To advance innovative solutions to problems involving 
     commercial motor vehicle and motor carrier safety, security, 
     and efficiency, and to stimulate the deployment of emerging 
     technology, the Secretary may carry out, on a cost-shared 
     basis, collaborative research and development with--
       [``(A) non-Federal entities, including State and local 
     governments, foreign governments, colleges and universities, 
     corporations, institutions, partnerships, and sole 
     proprietorships that are incorporated or established under 
     the laws of any State; and
       [``(B) Federal laboratories.
       [``(2) In carrying out this subsection, the Secretary may 
     enter into cooperative research and development agreements 
     (as defined in section 12 of the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3710a)).
       [``(3)(A) The Federal share of the cost of activities 
     carried out under a cooperative research and development 
     agreement entered into under this subsection shall not exceed 
     50 percent, except that if there is substantial public 
     interest or benefit, the Secretary may approve a greater 
     Federal share.
       [``(B) All costs directly incurred by the non-Federal 
     partners, including personnel, travel, and hardware or 
     software development costs, shall be credited toward the non-
     Federal share of the cost of the activities described in 
     subparagraph (A).
       [``(4) The research, development, or use of a technology 
     under a cooperative research and development agreement 
     entered into under this subsection, including the terms under 
     which the technology may be licensed and the resulting 
     royalties may be distributed, shall be subject to the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3701 et seq.).
       [``(5) Section 3705 of title 41, United States Code, shall 
     not apply to a contract or agreement entered into under this 
     section.
       [``(c)  Availability of Amounts.--The amounts made 
     available under section 4001(b) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 to 
     carry out this section shall remain available until expended.
       [``(d)  Contract Authority.--Approval by the Secretary of a 
     grant with funds made available under section 4001(b) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2003 to carry out this section imposes upon the 
     United States Government a contractual obligation for payment 
     of the Government's share of costs incurred in carrying out 
     the objectives of the grant.''.
       [(b)  Conforming Amendment.--The table of sections at the 
     beginning of chapter 311 of title 49, United States Code, is 
     amended by revising the item relating to section 31108 to 
     read as follows:

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

     [SEC. 4015. INTERNATIONAL COOPERATION.

       [(a) Chapter 311 of title 49, United States Code, is 
     amended by inserting at the end the following:

                    [``SUBCHAPTER IV--MISCELLANEOUS

     [``Sec. 31161. International cooperation

       [``The Secretary is authorized to use funds appropriated 
     under section 31104(i) of this title to participate and 
     cooperate in international activities to enhance motor 
     carrier, driver, and highway safety by such means as 
     exchanging information, conducting research; and examining 
     needs, best practices, and new technology.''.
       [(b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 311 of title 49, United States Code, is 
     amended by adding at the end the following:


                    [``subchapter IV--miscellaneous

[``31161. International cooperation.''.

     [SEC. 4016. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM 
                   MANAGEMENT (PRISM).

       [(a) Paragraphs (2) and (3) of section 31106(b) of title 
     49, United States Code, are amended to read as follows:
       [``(2) The program shall link Federal motor carrier safety 
     information systems with State commercial vehicle 
     registration and licensing systems and shall be designed to 
     enable a State to--
       [``(A) determine the safety fitness of a motor carrier or 
     registrant when licensing or registering the registrant or 
     motor carrier or while the license or registration is in 
     effect; and
       [``(B) deny, suspend, or revoke the commercial motor 
     vehicle registrations of a motor carrier or registrant that 
     has been issued an operations out-of-service order by the 
     Secretary.
       [``(3) The Secretary shall require States, as a condition 
     of participation in the program, to--
       [``(A) comply with the uniform policies, procedures, and 
     technical and operational standards prescribed by the 
     Secretary under subsection (a)(4); and
       [``(B) possess or seek the authority to deny, suspend, or 
     revoke commercial motor vehicle registrations based on the 
     issuance of an operations out-of-service order by the 
     Secretary.''.
       [(b)  Deletion.--Paragraph (4) of section 31106(b) of title 
     49, United States Code, is deleted.
       [(c)  Performance and Registration Information System 
     Management Grants.--
       [(1) Chapter 311 of title 49, United States Code, as 
     amended by this Act, is further amended by adding a new 
     section after section 31108, to read as follows:

     [``Sec. 31109. Performance and Registration Information 
       System Management (PRISM)

       [``(a) In General.--From the funds authorized by section 
     4001(c)(3) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, the Secretary may make a 
     grant in a fiscal year to a State to implement the 
     Performance and Registration Information System Management 
     requirements of 49 U.S.C. 31106(b).
       [``(b) Availability of Amounts.--Amounts made available to 
     a State under section 4001(c)(3) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 to 
     carry out this section shall remain available until expended.
       [``(c) Secretary's Approval.--Approval by the Secretary of 
     a grant to a State under section 4001(c)(3) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 to carry out this section is a contractual 
     obligation of the Government for payment of the amount of the 
     grant.''.
       [(2) Conforming amendment.--The table of sections at the 
     beginning of chapter 311 of title 49, United States Code, is 
     amended after the item relating to section 31108 by adding 
     the following:

[``31109. Performance and Registration Information System Management 
              (PRISM).''.

     [SEC. 4017. INFORMATION SYSTEMS AND DATA ANALYSIS.

       [The Secretary of Transportation shall carry out a program 
     to improve the collection and analysis of safety data on, 
     including crash causation involving, commercial motor 
     vehicles.

     [SEC. 4018. OUTREACH AND EDUCATION.

       [(a) In General.--The Secretary shall conduct an outreach 
     and education program to be administered by the Federal Motor 
     Carrier Safety Administration. The program shall include 
     expanded implementation of the ``Share the Road Safely'' and 
     ``Safety is Good Business'' programs. The Federal Motor 
     Carrier Safety Administration shall establish programs to 
     directly educate the industry and public about the 
     requirements of new and existing regulatory requirements. The 
     Secretary, through the Federal Motor

[[Page 792]]

     Carrier Safety Administration, may undertake other outreach 
     and education initiatives that may reduce the number of 
     accidents, injuries, and fatalities involving commercial 
     motor vehicles.
       [(b) Likely Risk Factors.--The Secretary, through the 
     Federal Motor Carrier Safety Administration, shall conduct an 
     outreach program to identify the practices of commercial 
     motor vehicle drivers that are most likely to increase and 
     decrease the risk of accidents.

            [TITLE V--TRANSPORTATION RESEARCH AND EDUCATION

                          [Subtitle A--Funding

     [SEC. 5101. AUTHORIZATION OF APPROPRIATIONS.

       [(a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       [(1) Surface transportation research, development and 
     deployment program.--To carry out sections 502, 503, 506 and 
     507 of title 23, United States Code, and section 5206 of this 
     Act relating to research, development, technology transfer, 
     technology deployment, and application activities, 
     $199,000,000 for each of fiscal years 2004 through 2009.
       [(2) Training and education.--For carrying out section 504 
     of title 23, United States Code, $26,000,000 for each of 
     fiscal years 2004 through 2009.
       [(3) Bureau of transportation statistics.--For the Bureau 
     of Transportation Statistics to carry out section 111 of 
     title 49, United States Code, the following:
       [(A) $31,568,000 for fiscal year 2004.
       [(B) $32,199,000 for fiscal year 2005.
       [(C) $32,869,000 for fiscal year 2006.
       [(D) $33,609,000 for fiscal year 2007.
       [(E) $34,439,000 for fiscal year 2008.
       [(F) $35,276,000 for fiscal year 2009.
       [(4) University transportation research.--For carrying out 
     section 5505 of title 49, United States Code, $26,500,000 for 
     each of fiscal years 2004 through 2009.
       [(5) Intelligent transportation systems research.--For 
     carrying out the Intelligent Transportation Systems Act of 
     2003 under subtitle E of this title, $121,000,000 for each of 
     fiscal years 2004 through 2009.
       [(b) Collaborative Research and Development.--Section 502 
     of title 23, United States Code, is amended--
       [(1) by striking subsection (b)(3); and
       [(2) by redesignating subsections (b)(4) and (b)(5) as 
     (b)(3) and (b)(4), respectively.
       [(c) Applicability of Title 23, United States Code.--Funds 
     authorized to be appropriated by subsection (a) shall be 
     available for obligation in the same manner as if such funds 
     were apportioned under chapter 1 of title 23, United States 
     Code, except that the Federal share of the cost of a project 
     or activity carried out using such funds shall be 100 percent 
     unless otherwise determined by the Secretary or specified 
     otherwise in this Act, and such funds shall remain available 
     until expended.

            [Subtitle B--Research, Technology, and Education

     [SEC. 5201. RESEARCH, TECHNOLOGY, AND EDUCATION.

       [(a) Research, Technology, and Education.--Title 23, United 
     States Code, is amended--
       [(1) in the table of chapters by striking--

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

     [and substituting--

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

     [and
       [(2) by striking the heading--

                [``CHAPTER 5--RESEARCH AND TECHNOLOGY''

     [and inserting--

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

       [(b) Statement of Principles Governing Research and 
     Technology Investments.--Section 502 of title 23, United 
     States Code, is amended--
       [(1) by redesignating subsections (a) through (g) as 
     subsections (b) through (h), respectively; and
       [(2) by inserting a new subsection (a) at the beginning, to 
     read as follows:
       [``(a) Basic Principles Governing Research and Technology 
     Investments.--
       [``(1) Coverage.--Surface transportation research and 
     technology development (R&T) shall include all activities 
     leading to technology development and transfer, as well as 
     the introduction of new and innovative ideas, practices and 
     approaches, through such mechanisms as field applications, 
     education and training, and technical support.
       [``(2) Federal responsibility.--Funding and conducting 
     surface transportation research and technology transfer 
     activities shall be considered a basic responsibility of the 
     Federal Government when--
       [``(A) the work is of national significance;
       [``(B) it supports research in which there is a clear 
     public benefit and private sector investment is less than 
     optimal due to market failure;
       [``(C) it supports a Federal stewardship role in assuring 
     that state and local governments use national resources 
     efficiently; or
       [``(D) it presents the best means to support Federal policy 
     goals compared to other policy alternatives.
       [``(3) Role.--Consistent with these Federal 
     responsibilities, the Secretary of Transportation shall--
       [``(A) conduct research;
       [``(B) support and facilitate research and technology 
     transfer activities by state highway agencies;
       [``(C) share results of completed research; and
       [``(D) support and facilitate technology and innovation 
     deployment.
       [``(4) Program content.--A surface transportation research 
     program shall include--
       [``(A) fundamental, long-term highway research;
       [``(B) research aimed at significant highway research gaps, 
     and emerging issues with national implications; and
       [``(C) research related to policy and planning.
       [``(5) Stakeholder input.--Federally sponsored surface 
     transportation R&T activities shall address the needs of 
     partners and stakeholders, and provide for stakeholder input 
     in preparation of a strategic plan for surface transportation 
     R&T.
       [``(6) Competition.--To the greatest extent possible, 
     investment decisions for surface transportation R&T 
     activities shall be based on the well-established principles 
     of competition and merit review.
       [``(7) Performance review.--Surface transportation R&T 
     activities shall include a component of performance 
     measurement.''.
       [(c) Transportation Pooled Fund Program.--Section 502(b) of 
     title 23, United States Code, as redesignated by this Act, is 
     amended by inserting the following at the end:
       [``(6) Pooled funding.--
       [``(A) To promote effective utilization of available 
     resources, the Secretary may cooperate with the States and 
     other appropriate agencies in funding research, development, 
     and technology transfer activities of mutual interest on a 
     pooled funds basis.
       [``(B) The Secretary may enter into contracts, cooperative 
     agreements, grants, and other transactions as agent for all 
     participating parties in carrying out such research, 
     development, or technology transfer.''.
       [(d) Operations Elements in Research Activities.--Section 
     502 of title 23, United States Code, is amended--
       [(1) in subsection (b)(1), as redesignated by this Act, by 
     striking subparagraphs (B) and (C) and inserting the 
     following:
       [``(B) all phases of transportation planning and 
     development (including construction, transportation system 
     management and operations, modernization, development, 
     design, maintenance, safety, financing, and traffic 
     conditions);
       [``(C) freight security processes and procedures; and
       [``(D) the effect of State laws on the activities described 
     in subparagraphs (A) and (B).'';
       [(2) in subsection (d)(5)(C), as redesignated by this Act, 
     by inserting ``system management and'' after 
     ``transportation''; and
       [(3) in subsection (d), as redesignated by this Act, by 
     inserting at the end:
       [``(12) Investigation and development of various 
     operational methodologies to reduce the occurrence and impact 
     of recurrent congestion and non-recurrent congestion, and 
     increase transportation system reliability.
       [``(13) Investigate processes, procedures, and technologies 
     to secure container and hazardous material transport, 
     including the evaluation of regulations, liability, terrorist 
     countermeasures, and the impact of good security practices on 
     commerce and productivity.
       [``(14) Research, development, and technology transfer 
     related to asset management.''.
       [(e) Turner-Fairbank Highway Research Center.--Section 502 
     of title 23, United States Code, is amended by inserting at 
     the end the following:
       [``(i) Turner-Fairbank Highway Research Center.--
       [``(1) In general.--The Secretary shall operate in the 
     Federal Highway Administration a Turner-Fairbank Highway 
     Research Center.
       [``(2) Uses of the center.--The Turner-Fairbank Highway 
     Research Center shall support the--
       [``(A) conduct of highway research and development related 
     to new highway technology;
       [``(B) development of understandings, tools, and techniques 
     that provide solutions to complex technical problems through 
     the development of economical and environmentally sensitive 
     designs, efficient and quality controlled construction 
     practices, and durable materials; and
       [``(C) development of innovative highway products and 
     practices.''.
       [(f) Exploratory Advanced Research Program.--Section 502 of 
     title 23, United States Code, is amended by striking 
     subsection (e), as redesignated by this Act, and inserting 
     the following:
       [``(e) Exploratory Advanced Research.--
       [``(1) In general.--The Secretary shall establish an 
     exploratory advanced research program, consistent with the 
     surface transportation research and technology development 
     strategic plan developed under section 508, that involves and 
     draws upon basic research results to provide a better 
     understanding of problems and develop innovative

[[Page 793]]

     solutions. The phrase ``exploratory advanced research'' 
     conveys a more fundamental character, broader objective, 
     multi-disciplinary nature, and greater uncertainty in 
     expected outcomes than found in problem-solving research. In 
     carrying out the program, the Secretary shall strive to 
     develop partnerships with the public and private sectors.
       [``(2) Research areas.--In carrying out the program, the 
     Secretary may make grants and enter into cooperative 
     agreements and contracts in such areas of surface 
     transportation research and technology as the Secretary 
     determines appropriate, including the following:
       [``(A) Characterization of materials used in highway 
     infrastructure, including analytical techniques, 
     microstructure modeling, and the deterioration processes.
       [``(B) Assessing the effects of transportation decisions on 
     human health.
       [``(C) Development of surrogate measures of safety.
       [``(D) Environmental research.
       [``(E) Data acquisition techniques for system condition and 
     performance monitoring.
       [``(F) System performance data and information processing 
     needed to assess the day-to-day operational performance of 
     the system in support of hour-to-hour operational decision 
     making.''.
       [(g) Authority To Purchase Promotional Items.--Section 503 
     of title 23, United States Code, as amended by this Act, is 
     further amended by inserting the following at the end:
       [``(e) Promotional Authority.--Funds authorized to be 
     appropriated under this or any other Act for necessary 
     expenses for administration and operation of the Federal 
     Highway Administration shall be available to purchase 
     promotional items of nominal value for use in the recruitment 
     of individuals and to promote the programs of the Federal 
     Highway Administration.''.
       [(h) Facilitating Transportation Research and Technology 
     Deployment Partnerships.--Section 502(c) of title 23, United 
     States Code, as redesignated by this Act, is amended by 
     striking paragraph (2) and inserting the following:
       [``(2) Cooperation, grants, contracts and agreements.--
     Notwithstanding any other provision of law, the Secretary may 
     directly initiate contracts, cooperative research and 
     development agreements (as defined in section 12 of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a)), and other transactions to fund, and accept funds 
     from, the National Research Council/ Transportation Research 
     Board, American Association of State Highway and 
     Transportation Officials, State Departments of 
     Transportation, cities, and counties, and their agents to 
     conduct joint transportation research and technology 
     efforts.''.
       [(i) Long-Term Pavement Performance Program.--
       [(1) Surface transportation research.--Chapter 5 of title 
     23, United States Code is amended by adding after section 504 
     the following:

     [``Sec. 505. Surface transportation research

       [``(a) Authority.--The Secretary of Transportation shall 
     complete the 20-year long-term pavement performance program 
     tests initiated under the strategic highway research program 
     established under section 307(d) (as in effect on the day 
     before the date of enactment of this section) and continued 
     by the Intermodal Surface Transportation Efficiency Act of 
     1991 and the Transportation Equity Act For The 21st Century.
       [``(b) Grants, Cooperative Agreements, and Contracts.--
     Under the program, the Secretary shall make grants and enter 
     into cooperative agreements and contracts to--
       [``(1) monitor, material-test, and evaluate highway test 
     sections in existence as of the date of the grant, agreement, 
     or contract;
       [``(2) analyze the data obtained in carrying out 
     subparagraph (A); and
       [``(3) prepare products to fulfill program objectives and 
     meet future pavement technology needs.''.
       [(2) Conforming amendment.--The analysis for chapter 5 of 
     title 23 is amended by inserting after item 504 the 
     following:

[``505. Surface transportation research.''.

       [(j) Procurement for Research, Development, and Technology 
     Transfer Activities.--Section 502(b) of title 23, United 
     States Code, as redesignated by this Act, is amended by 
     striking paragraph (3) and inserting the following:
       [``(3) Cooperation, grants, and contracts.--The Secretary 
     may carry out research, development, and technology transfer 
     activities related to transportation--
       [``(A) independently;
       [``(B) in cooperation with other Federal departments, 
     agencies, and instrumentalities and Federal laboratories; or
       [``(C) by making grants to, or entering into contracts, 
     cooperative agreements, and other transactions with the 
     following: the National Academy of Sciences, the American 
     Association of State Highway and Transportation Officials, or 
     any Federal laboratory, Federal agency, State agency, 
     authority, association, institution, for-profit or nonprofit 
     corporation, organization, foreign country, or person.''.
       [(k) Infrastructure Investment Needs Report.--
       [(1) Title 23 amendment.--Section 502(h)(1) of title 23, 
     United States Code, as redesignated by this Act, is amended 
     by striking ``Not later than January 31, 1999, and January 31 
     of every second year thereafter,'' and inserting ``Not later 
     than July 31, 2004, and July 31 of every second year 
     thereafter,''.
       [(2) Conforming amendment to title 49, united states 
     code.--Section 308(e)(1) of title 49, United States Code, is 
     amended by striking ``in March 1998, and in March of each 
     even-numbered year thereafter'' and inserting ``not later 
     than July 31, 2004, and July 31 of every second year 
     thereafter,''.

     [SEC. 5202. SURFACE TRANSPORTATION ENVIRONMENT AND PLANNING 
                   COOPERATIVE RESEARCH PROGRAM.

       [(a) Surface Transportation Environment and Planning 
     Cooperative Research Program.--Chapter 5 of title 23, United 
     States Code, is amended by striking section 507 and inserting 
     the following:

     [``Sec. 507. Surface transportation environment and planning 
       cooperative research program

       [``(a) Establishment.--The Secretary shall establish and 
     support a collaborative, public-private surface 
     transportation environment and planning cooperative research 
     program.
       [``(b) Agreement.--The Secretary shall enter into an 
     agreement with the National Academy of Sciences or other 
     organization to support and carry out administrative and 
     management activities relating to the governance of the 
     surface transportation environment and planning cooperative 
     research program.
       [``(c) Advisory Board.--The organization described in 
     subsection (b) shall select an advisory board drawn from core 
     partners that represent environment, transportation, and 
     neutral interests, including the Department of 
     Transportation, other Federal agencies, the States, local 
     governments, nonprofit entities, academia, and the private 
     sector.
       [``(d) Governance.--The surface transportation environment 
     and planning cooperative research program established under 
     this section shall include the following administrative and 
     management elements:
       [``(1) National research agenda.--The advisory board, in 
     consultation with core partners and other stakeholders, shall 
     develop and periodically update a national research agenda 
     for the surface transportation environment and planning 
     cooperative research program. The national research agenda 
     shall include a multi-year strategic plan.
       [``(2) Stakeholder involvement.--Stakeholders may:
       [``(A) submit research proposals;
       [``(B) participate in merit reviews of research proposals 
     and peer reviews of research products; and
       [``(C) receive research results.
       [``(3) Open competition and peer review of research 
     proposals.--The organization described in subsection (b) may 
     award research contracts and grants through open competition 
     and merit review conducted on a regular basis.
       [``(4) Evaluation of research.--
       [``(A) Peer review.--Research contracts and grants may 
     allow peer review of the research results.
       [``(B) Programmatic evaluations.--The organization 
     described in subsection (b) may conduct periodic programmatic 
     evaluations on a regular basis.
       [``(5) Dissemination of research findings.--The 
     organization described in subsection (b) shall disseminate 
     research findings to researchers, practitioners, and 
     decision-makers, through conferences and seminars, field 
     demonstrations, workshops, training programs, presentations, 
     testimony to Government officials, world wide web, and 
     publications for the general public.
       [``(e) Contents.--The national research agenda for the 
     surface transportation environment and planning cooperative 
     research program required under subsection (c)(2) shall 
     include research in the following areas for the purposes 
     cited:
       [``(1) Human health.--Human health to establish the links 
     between transportation activities and human health; 
     substantiate the linkages between exposure to concentration 
     levels, emissions, and health impacts; examine the potential 
     health impacts from the implementation and operation of 
     transportation infrastructure and services; develop 
     strategies for avoidance and reduction of these impacts; and 
     develop strategies to understand the economic value of health 
     improvements; and for incorporating health considerations 
     into valuation methods.
       [``(2) Ecology and natural systems.--Ecology and natural 
     systems to measure transportation's short- and long-term 
     impact on natural systems; develop ecologically based 
     performance measures; develop insight into both the spatial 
     and temporal issues associated with transportation and 
     natural systems; study the relationship between highway 
     density and ecosystem integrity, including the impacts of 
     highway density on habitat integrity and overall ecosystem 
     health; develop a rapid assessment methodology for use by 
     transportation and regulatory agencies in determining the 
     relationship between highway density and ecosystem integrity; 
     and develop ecologically based performance techniques to 
     evaluate the success of highway project mitigation and 
     enhancement measures.

[[Page 794]]

       [``(3) Environmental and socioeconomic relationships.--
     Environmental and socioeconomic relationships to understand 
     differences in mobility, access, travel behavior, and travel 
     preferences across socioeconomic groups; develop improved 
     planning approaches that better reflect and respond to 
     community needs; improve evaluation methods for examining the 
     incidence of benefits and costs; examine the differential 
     impacts of current methods of finance and explore 
     alternatives; understand the socioeconomic implications of 
     emerging land development patterns and new transportation 
     technologies; develop cost-effective applications of 
     technology that improve the equity of the transport system; 
     and develop improved methods for community involvement, 
     collaborative planning, and conflict resolution.
       [``(4) Emerging technologies.--Emerging technologies to 
     assist in the transition to environmentally benign fuels and 
     vehicles for passengers and freight; develop responses to and 
     demand for new technologies that could offer improved 
     environmental performance; identify possible applications of 
     Intelligent Transportation Systems technologies for 
     environmental benefit; develop policy instruments that would 
     encourage the development of beneficial new technologies in a 
     cost-effective manner; and respond to the impact of new 
     technologies.
       [``(5) Land use.--Land use to assess land consumption 
     trends and contributing factors of transportation investment, 
     housing policies, school quality, and consumer preferences; 
     incorporate impacts of transportation investments on location 
     decision and land use; identify the costs and benefits of 
     current development patterns and their transportation 
     implications; determine the effect of the built environment 
     on people's willingness to walk, drive, or take public 
     transportation; determine the roles of public policy and 
     institutional arrangements in current and prospective land 
     use and transportation choices; and develop improved data, 
     methods, and processes for considering land use, 
     transportation, and the environment in an integrated, 
     systematic fashion.
       [``(6) Planning and performance measures.--Planning and 
     performance measures to improve understanding of travel needs 
     and preferences; improve planning methods for system 
     analysis, forecasting, and decision making; expand 
     information on consumer choice processes and travel and 
     activity patterns for both local and long-distance trips and 
     both passenger and freight transportation analysis of social, 
     environmental, and economic benefits and cost of various 
     transport options; develop tools for measuring and 
     forecasting complex transportation decision for all modes and 
     users; and develop performance measures and policy analysis 
     approaches that can be used to determine effectiveness.
       [``(7) Additional priorities.--Additional priorities to 
     identify and address the emerging and future surface 
     transportation research needs related to planning and 
     environment. --
       [``(f) Funding.--In addition to using funds authorized for 
     this section, the organization that administers this program 
     may seek and accept additional funding sources from public 
     and private entities capable of attracting and accepting 
     funding from the United States Department of Transportation 
     (Federal Highway Administration, Federal Transit 
     Administration, Federal Railroad Administration, Research and 
     Special Programs Administration, and the National Highway 
     Traffic Safety Administration), Environmental Protection 
     Agency, Department of Energy, Fish and Wildlife and other 
     Federal environmental agencies, States, local governments, 
     nonprofit foundations, and the private sector.''.
       [(b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by striking the item 
     related to section 507 and inserting the following:

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

     [SEC. 5203. LONG-TERM BRIDGE PERFORMANCE PROGRAM; INNOVATIVE 
                   BRIDGE RESEARCH AND DEPLOYMENT PROGRAM.

       [(a) Long-Term Bridge Performance Program.--Section 502 of 
     title 23, United States Code, is amended by striking 502(g), 
     as redesignated by this Act, and inserting the following:
       [``(g) Long-Term Bridge Performance Program.--
       [``(1) Authority.--The Secretary shall establish a 20 year 
     long-term bridge performance program.
       [``(2) Grants, cooperative agreements, and contracts.--
     Under the program, the Secretary shall make grants and enter 
     into cooperative agreements and contracts to--
       [``(A) monitor, material-test, and evaluate test bridges;
       [``(B) analyze the data obtained in carrying out 
     subparagraph (A); and
       [``(C) prepare products to fulfill program objectives and 
     meet future bridge technology needs.''.
       [(b) Innovative Bridge Research and Deployment Program.--
       [(1) In general.--Section 503(b) of title 23, United States 
     Code, is amended by striking 503(b)(1) and inserting:
       [``(1) In general.--The Secretary shall establish and carry 
     out a program to promote, demonstrate, evaluate, and document 
     the application of innovative designs, materials and 
     construction methods in the construction, repair, and 
     rehabilitation of bridges and other highway structures.''.
       [(2) Goals.--Section 503(b)(2) of such title is amended by 
     striking 503(b)(2) and inserting:
       [``(2) Goals.--The goals of the program shall include--
       [``(A) the development of new, cost-effective, innovative 
     highway bridge applications;
       [``(B) the development of construction techniques to 
     increase safety and reduce construction time and traffic 
     congestion;
       [``(C) the development of engineering design criteria for 
     innovative products, materials, and structural systems for 
     use in highway bridges and structures;
       [``(D) the reduction of maintenance costs and life-cycle 
     costs of bridges, including the costs of new construction, 
     replacement, or rehabilitation of deficient bridges;
       [``(E) the development of highway bridges and structures 
     that will withstand natural disasters and terrorist attacks;
       [``(F) the documentation and wide dissemination of 
     objective evaluations of the performance and benefits of 
     these innovative designs, materials, and construction 
     methods; and
       [``(G) the effective transfer of resulting information and 
     technology.''.

     [SEC. 5204. TECHNOLOGY DEPLOYMENT.

       [(a) Technology Deployment Program.--Section 503(a) of 
     title 23, United States Code, is amended--
       [(1) in the subsection heading, by striking ``initiatives 
     and partnerships'';
       [(2) by striking paragraph (1) and inserting the following:
       [``(1) Establishment.--The Secretary shall develop and 
     administer a national technology deployment program.''.
       [(3) by striking paragraph (7) and inserting the following:
       [``(7) Grants, cooperative agreements, and contracts.--
       [``(A) In general.--Under the program, the Secretary shall 
     make grants to, and enter into cooperative agreements and 
     contracts with States, other Federal agencies, universities 
     and colleges, private sector entities, and nonprofit 
     organizations to pay the Federal share of the cost of 
     research, development, and technology transfer concerning 
     innovative materials.
       [``(B) Applications.--To receive a grant under this 
     subsection, an entity described in subparagraph (A) shall 
     submit an application to the Secretary. The application shall 
     be in such form and contain such information as the Secretary 
     may require. The Secretary shall select and approve the 
     applications based on whether the project that is the subject 
     of the grant meets the goals of the program described in 
     paragraph (2).'';
       [(4) by striking paragraph (8);
       [(5) by redesignating paragraph (9) as paragraph (10); and
       [(6) by inserting after paragraph (7) the following:
       [``(8) Technology and information transfer.--The Secretary 
     shall ensure that the information and technology resulting 
     from research conducted under paragraph (3) is made available 
     to State and local transportation departments and other 
     interested parties as specified by the Secretary.
       [``(9) Federal share.--The Federal share of the cost of a 
     project under this section shall be determined by the 
     Secretary.''.
       [(b) Innovative Pavement Research and Deployment Program.--
     Section 503 of title 23, United States Code, is amended by 
     adding after subsection (b) the following:
       [``(c) Innovative Pavement Research and Deployment 
     Program.--
       [``(1) In general.--The Secretary shall establish and 
     implement a program to promote, demonstrate, support, and 
     document the application of innovative pavement technologies, 
     practices, performance, and benefits.
       [``(2) Goals.--The goals of the innovative pavement 
     research and deployment program shall include--
       [``(A) the deployment of new, cost-effective innovative 
     designs, materials, and practices to extend pavement life and 
     performance and to improve customer satisfaction;
       [``(B) the reduction of initial costs and life-cycle costs 
     of pavements, including the costs of new construction, 
     replacement, maintenance, and rehabilitation;
       [``(C) the deployment of accelerated construction 
     techniques to increase safety and reduce construction time 
     and traffic disruption and congestion;
       [``(D) the deployment of engineering design criteria and 
     specifications for innovative practices, products, and 
     materials for use in highway pavements;
       [``(E) the deployment of new nondestructive and real time 
     pavement evaluation technologies and techniques;
       [``(F) evaluation, refinement, and documentation of the 
     performance and benefits of innovative technologies deployed 
     to improve life, performance, cost effectiveness, safety, and 
     customer satisfaction;
       [``(G) effective technology transfer and information 
     dissemination to accelerate implementation of innovative 
     technologies and to

[[Page 795]]

     improve life, performance, cost effectiveness, safety, and 
     customer satisfaction; and
       [``(H) the development of designs and materials to reduce 
     storm water runoff.''.
       [(c) Safety Innovation Deployment Program.--Section 503 of 
     title 23, United States Code, as amended by this Act, is 
     further amended by adding the following:
       [``(d) Safety Innovation Deployment Program.--
       [``(1) In general.--The Secretary shall establish and 
     implement a program to demonstrate the application of 
     innovative technologies in highway safety.
       [``(2) Goals.--The goals of the program shall include--
       [``(A) the deployment and evaluation of safety technologies 
     and innovations at state and local levels; and
       [``(B) the deployment of best practices in training, 
     management, design, and planning.
       [``(3) Grants, cooperative agreements, and contracts.--
       [``(A) In general.--Under the program, the Secretary shall 
     make grants to, and enter into cooperative agreements and 
     contracts with States, other Federal agencies, universities 
     and colleges, private sector entities, and nonprofit 
     organizations for research, development, and technology 
     transfer for innovative safety technologies.
       [``(B) Applications.--To receive a grant under this 
     subsection, an entity described in subparagraph (A) shall 
     submit an application to the Secretary. The application shall 
     be in such form and contain such information as the Secretary 
     may require. The Secretary shall select and approve the 
     applications based on whether the project that is the subject 
     of the grant meets the goals of the program described in 
     paragraph (2).
       [``(4) Technology and information transfer.--The Secretary 
     shall take such action as is necessary to ensure that the 
     information and technology resulting from research conducted 
     under paragraph (3) is made available to State and local 
     transportation departments and other interested parties as 
     specified by the Secretary.
       [``(5) Federal share.--The Federal share of the cost of a 
     project under this section shall be determined by the 
     Secretary.''.

     [SEC. 5205. TRAINING AND EDUCATION.

       [(a) National Highway Institute.--Section 504(a) of title 
     23, United States Code, is amended by striking paragraph (3) 
     and inserting the following:
       [``(3) Courses.--The Institute may develop and administer 
     courses in modern developments, techniques, methods, 
     regulations, management, and procedures in areas including 
     surface transportation, environmental stewardship and 
     streamlining, acquisition of rights-of-way, relocation 
     assistance, engineering, safety, transportation system 
     management and operations, construction, maintenance, 
     contract administration, inspection, and highway finance.''.
       [(b) Federal Share.--Section 504(b) of title 23, United 
     States Code, is amended by adding at the end the following:
       [``(3) Federal share.--
       [``(A) Grants.--The grant funds authorized to carry out 
     this subsection may be used to cover up to 50 percent of the 
     program costs relating to local technical assistance. Funds 
     available for technology transfer and training purposes under 
     this title and title 49 may be used to cover the remaining 50 
     percent of the program costs.
       [``(B) Tribal technical assistance centers.--The Federal 
     share of the cost of activities carried out by the tribal 
     technical assistance centers under paragraph (b)(2)(D)(ii) of 
     this subsection shall be 100 percent.''.
       [(c) Surface Transportation Workforce Development, 
     Training, and Education.--Section 504 of title 23, United 
     States Code, is amended by adding at the end the following:
       [``(d) Surface Transportation Workforce Development, 
     Training, and Education.--
       [``(1) Funding.--Subject to project approval by the 
     Secretary, a State may obligate funds apportioned to it under 
     sections 104(b)(1), (3), and (4) and 144(e) of this title for 
     surface transportation workforce development, training and 
     education, including:
       [``(A) tuition and direct educational expenses, excluding 
     salaries, in connection with the education and training of 
     employees of State and local transportation agencies;
       [``(B) employee professional development;
       [``(C) student internships;
       [``(D) university or community college support; or
       [``(E) education outreach activities to develop interest 
     and promote participation in surface transportation careers.
       [``(2) Federal share.--The Federal share of the cost of 
     activities carried out in accordance with this subsection 
     shall be 100 percent.''.
       [(d) Definitions and Declaration of Policy.--Section 101(a) 
     of title 23, United States Code, as amended by this Act, is 
     further amended--
       [(1) in paragraph (3), by--
       [(A) striking ``and'' after subparagraph (H);
       [(B) striking the period after subparagraph (I) and 
     inserting ``; and''; and
       [(C) adding after subparagraph (I) the following:
       [``(J) surface transportation workforce development, 
     training, and education.'';
       [(2) by redesignating paragraphs (36) through (39), as 
     redesignated by this Act, as paragraphs (37) through (40) 
     respectively; and
       [(3) by adding after paragraph (35), as redesignated by 
     this Act, the following:
       [``(36) Surface transportation workforce development, 
     training, and education.--The term `surface transportation 
     workforce development, training, and education' means 
     activities associated with surface transportation career 
     awareness, student transportation career preparation, and 
     training and professional development for surface 
     transportation workers.''.

     [SEC. 5206. ADVANCED TRAVEL FORECASTING PROCEDURES PROGRAM.

       [(a) Continuation and Acceleration of TRANSIMS 
     Deployment.--The Secretary shall accelerate the deployment of 
     the advanced transportation model known as the Transportation 
     Analysis Simulation System (``TRANSIMS''), developed by the 
     Los Alamos National Laboratory. The program shall assist 
     State departments of transportation and metropolitan planning 
     organizations in the implementation of TRANSIMS, develop 
     methods for TRANSIMS applications to transportation planning 
     and air quality analysis, and provide training and technical 
     assistance for the implementation of TRANSIMS. The program 
     may support the development of methods to plan for the 
     transportation response to chemical and biological terrorism 
     and other security concerns.
       [(b) Eligible Activities.--The Secretary shall use funds 
     made available under section 5101(a)(1) of this Act to--
       [(1) provide funding to State departments of transportation 
     and metropolitan planning organizations serving 
     transportation management areas designated under the 
     metropolitan planning section of chapter 52 of title 49, 
     United States Code, representing a diversity of populations, 
     geographic regions and analytic needs to implement TRANSIMS;
       [(2) develop methods to demonstrate a wide spectrum of 
     TRANSIMS applications to support metropolitan and statewide 
     transportation planning, including integrating highway and 
     transit operational considerations into the transportation 
     planning process; and
       [(3) provide training and technical assistance with respect 
     to the implementation and application of TRANSIMS to States, 
     local governments and Metropolitan Planning Organizations 
     with responsibility for travel modeling.
       [(c) Allocation of Funds.--Not more than 75 percent of the 
     funds made available to carry out this section may be 
     allocated to activities described in subsection (b)(1).

  [Subtitle C--Multimodal Research Programs; Scholarship Opportunities

     [SEC. 5301. UNIVERSITY TRANSPORTATION RESEARCH.

       [Section 5505 of title 49, United States Code, is revised 
     to read as follows:

     [``Sec. 5505. University transportation research

       [``(a) University Industry Government Partnerships.--The 
     Secretary of Transportation shall make grants to nonprofit 
     institutions of higher learning to address transportation 
     management and research and development matters, with special 
     attention to increasing the number of highly skilled 
     individuals entering the field of transportation.
       [``(b) Objectives.--
       [``(1) Each university receiving a grant under this section 
     shall conduct the following programs and activities:
       [``(A) Basic and applied research that supports the 
     Department's transportation research agenda, the products of 
     which are judged by peers or other experts in the field to 
     advance the body of knowledge in transportation.
       [``(B) An education program that includes multidisciplinary 
     course work, faculty and student participation in research, 
     and an opportunity for practical experience.
       [``(C) An ongoing program of technology transfer that makes 
     the results of research and education activities broadly 
     available to potential users in a form that can be 
     implemented, utilized, or otherwise applied.
       [``(2) Each university shall elect as its primary objective 
     either subsection (b)(1)(A) or (b)(1)(B) of this section and 
     shall direct at least 50 percent of total costs to the 
     accomplishment thereof.
       [``(c) Selection of Grant Recipients.--
       [``(1) In order to be eligible to receive a grant under 
     this section, a nonprofit institution of higher learning 
     shall submit to the Secretary an application that is in such 
     form and contains such information as the Secretary may 
     require.
       [``(2) The Secretary shall select each recipient of a grant 
     under this section through a competitive process in which 
     applications are evaluated on the basis of the following:
       [``(A) The demonstrated research and extension resources 
     available to the applicant to carry out this section.
       [``(B) The capability of the applicant to provide 
     leadership in making national and regional contributions to 
     the solution of immediate and long-range transportation 
     problems.
       [``(C) The applicant's demonstrated commitment of at least 
     $200,000 in regularly-

[[Page 796]]

     budgeted institutional amounts each year to support ongoing 
     transportation research and education programs.
       [``(D) The amount of matching funds for which the applicant 
     has obtained binding commitments.
       [``(E) Evidence of the applicant's research and education 
     partnerships with at least one private sector partner and at 
     least one non-Federal Government partner.
       [``(F) The applicant's demonstrated ability to disseminate 
     results of transportation research and education programs 
     through national and statewide or regionwide continuing 
     education and capacity-building programs.
       [``(G) The strategic plan the applicant proposes to achieve 
     the objectives of the grant and--
       [``(i) if the applicant's primary objective is subsection 
     (b)(1)(A) of this section, the strategic plan shall include a 
     research plan that addresses more than one mode of 
     transportation; or
       [``(ii) if the applicant's primary objective is subsection 
     (b)(1)(B) of this section, the strategic plan shall include 
     an education plan that addresses multimodal issues.
       [``(d) Maintenance of Effort.--In order to be eligible to 
     receive a grant under this section, a recipient shall enter 
     into an agreement with the Secretary to ensure that the 
     recipient will maintain total expenditures from all other 
     sources to carry out the objectives of a grant at a level at 
     least equal to the average level of such expenditures in its 
     2 fiscal years prior to award of a grant under this section.
       [``(e) Federal Share.--The Federal share of the costs of 
     activities carried out using a grant made under this section 
     shall not exceed 50 percent of costs. The non-Federal share 
     may include funds provided to a recipient under section 503, 
     or 104(i) of title 23, United States Code.
       [``(f) Program Administration.--
       [``(1) The Secretary shall conduct all grant management and 
     administration functions necessary to facilitate the 
     research, education, training, and technology transfer 
     activities that grant recipients carry out under this 
     section; to coordinate these activities among the grant 
     recipients; to ensure that the results of the research, 
     education, training and technology transfer activities are 
     widely disseminated; and to ensure the effective use of 
     program resources.
       [``(2) At least annually and consistent with the plan 
     developed under section 508 of title 23, United States Code, 
     the Secretary shall review and evaluate programs the grant 
     recipients carry out.
       [``(3) The Secretary may not use more than 1 percent of 
     amounts made available from Government sources to carry out 
     this subsection.
       [``(g) Use of Transportation Research Information Services 
     (TRIS) Databases.--
       [(1) Recipients of awards under this section shall make use 
     of the National Research Council (NRC), Transportation 
     Research Board (TRB), Transportation Research Information 
     Services (TRIS) online databases for the following purposes:
       [``(A) Program development and strategic planning.
       [``(B) Reporting of active R&T activities undertaken with 
     funding provided here.
       [``(C) Input and dissemination of results and reports from 
     completed research.
       [``(2) Recipients shall recommend a representative to serve 
     as liaison to the Transportation Research Board.
       [``(h) Limitation on Availability of Funds.-- Funds made 
     available to carry out this program shall remain available 
     for obligation for a period of 2 years after the last day of 
     the fiscal year for which such funds are authorized.''.

     [SEC. 5302. MULTIMODAL RESEARCH PROGRAM.

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

     [``Sec. 5506. Multimodal research program

       [``(a) Purpose.--The Secretary shall establish a program to 
     encourage and promote the research, development, 
     demonstration and testing of technologies that have 
     multimodal transportation applications, and shall foster 
     adoption of those technologies in transportation through 
     demonstration and testing to remove impediments to an 
     efficient, safe, and cost-effective national transportation 
     system.
       [``(b) Other Research Activities.--To ensure the activities 
     performed pursuant to this section achieve the maximum 
     benefit, the Secretary, the Secretary of Energy, the 
     Administrator of the Environmental Protection Agency, and 
     other relevant Federal agencies shall coordinate their 
     research, development and demonstration activities related to 
     heavy-duty vehicle technologies and hydrogen transportation 
     and refueling infrastructure. Nothing in this section may be 
     construed to authorize the Secretary to conduct research, 
     development, demonstration or testing activities that the 
     Secretary of Energy or the Administrator of the Environmental 
     Protection Agency is authorized to conduct, or to modify the 
     authorities of the Secretary of Energy or the Administrator 
     of the Environmental Protection Agency.
       [``(c) Advanced Heavy-Duty Vehicle Technologies.--
       [``(1) The Secretary of Transportation shall conduct 
     research, development, demonstration and testing to integrate 
     emerging multimodal heavy-duty vehicle technologies in order 
     to provide seamless, safe, secure and efficient 
     transportation.
       [``(2) There is authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this paragraph $24,000,000 for fiscal year 2005, 
     $25,000,000 for fiscal year 2006, $23,000,000 for fiscal year 
     2007, $18,000,000 for fiscal year 2008, and $10,000,000 for 
     fiscal year 2009.
       [``(3) The funding made available under paragraph (2) of 
     this subsection shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23 and shall be subject to any obligation limitation 
     imposed on funds for Federal-aid highways and highway safety 
     construction programs.
       [``(d) Hydrogen Infrastructure Safety Research and 
     Development.--
       [``(1) The Secretary of Transportation is authorized to 
     conduct research, development, demonstration and testing on 
     the safety aspects of hydrogen transportation and refueling 
     infrastructure necessary to support the use of next 
     generation vehicle technologies.
       [``(2) To carry out this subsection, there is authorized to 
     be appropriated $1,000,000 for fiscal years 2004, $15,000,000 
     for fiscal year 2005, $13,000,000 for fiscal year 2006, 
     $11,000,000 for fiscal year 2007, $9,000,000 for fiscal year 
     2008, and $6,000,000 for fiscal year 2009.
       [``(e) Grants, Cooperative Agreements, and Other 
     Transactions.-- The Secretary may enter into grants, 
     cooperative agreements, and other transactions with Federal 
     and other public agencies (including State and local 
     governments) and private organizations and other persons to 
     carry out this section.
       [``(f) Cost Sharing.--At least 50 percent of the funding 
     for projects authorized in this section must be provided by 
     non-Federal sources.''.
       [(b) Conforming Amendment.--The analysis of chapter 55 of 
     title 49, United States Code, is amended by substituting the 
     following for the item designated 5506:

[``Sec. 5506. Multimodal research program.''.

     [SEC. 5303. COMMERCIAL REMOTE SENSING PRODUCTS.

       [Section 5113 of the Transportation Equity Act of the 21st 
     Century (23 U.S.C. 502 note) is amended by revising 
     subsection (b) to read as follows:
       [``(b) Program.--
       [``(1) National policy.--The Secretary shall establish and 
     maintain a national policy for the use of commercial remote 
     sensing products and spatial information technologies in 
     national transportation infrastructure development and 
     construction.
       [``(2) Policy implementation.--The Secretary shall develop 
     new applications of commercial remote sensing products and 
     spatial information technologies for the implementation of 
     the national policy established and maintained under (b)(1) 
     of this section.''.

     [SEC. 5304. TRANSPORTATION SCHOLARSHIP OPPORTUNITIES PROGRAM.

       [(a) In General.--(1) The Secretary may establish and 
     implement a scholarship program for the purpose of attracting 
     qualified students for transportation-related critical jobs.
       [(2) The Secretary may accomplish this objective by 
     developing a program in partnership with appropriate non-
     governmental institutions.
       [(b) Participation and Funding.--An operating 
     administration of the Department of Transportation and the 
     Office of Inspector General of the Department of 
     Transportation (DOT) may participate in the scholarship 
     program. Notwithstanding any other law, the Secretary may use 
     funds available to an operating administration or from the 
     Office of Inspector General for the purpose of carrying out 
     this provision.

             [Subtitle D--Transportation Data and Analysis

     [SEC. 5401. BUREAU OF TRANSPORTATION STATISTICS.

       [Section 111 of title 49, United States Code, is amended by 
     deleting subsections (b) through (k) and inserting the 
     following new subsections, as follows:
       [``(b) Director.--
       [``(1) The Bureau shall be headed by a Director, who shall 
     be appointed by the President, by and with the advice and 
     consent of the Senate.
       [``(2) The Director shall be appointed from among 
     individuals who are qualified to serve by virtue of their 
     training and experience in the collection, analysis and use 
     of transportation data.
       [``(3) The Director shall report directly to the Secretary 
     of Transportation.
       [``(4) The term of the Director shall be 4 years. The 
     Director may continue to serve after the expiration of the 
     term until a successor is appointed and confirmed.
       [``(c) Responsibilities.--The Director of the Bureau shall 
     serve as the Secretary's senior advisor on data and 
     statistics and be responsible for carrying out the following 
     duties:
       [``(1) Collecting, analyzing and disseminating data 
     concerning the domestic and international movement of 
     freight.
       [``(2) Collecting, analyzing and disseminating data 
     concerning travel patterns for

[[Page 797]]

     local and long-distance travel, at the local, State, national 
     and international levels.
       [``(3) Developing, analyzing and disseminating information 
     on the economics of transportation.
       [``(4) Building and disseminating the transportation layer 
     of the National Spatial Data Infrastructure, including 
     coordinating the development of transportation geospatial 
     data standards, compiling intermodal geospatial data, and 
     collecting geospatial data that is not being collected by 
     others.
       [``(5) Developing, publishing and disseminating a 
     comprehensive set of measures of investment, use, costs, 
     performance and impacts of the national transportation 
     system, including publishing an annual transportation 
     statistics abstract; and identifying information needs and 
     reviewing such needs at least annually with the Advisory 
     Council on Transportation Statistics.
       [``(6) Conducting or supporting research relating to 
     methods of gathering or analyzing transportation statistics 
     and issuing guidelines for the collection of information by 
     the Department in order to ensure that such information is 
     accurate, relevant, comparable, accessible and in a form that 
     permits systematic analysis.
       [``(d) Coordinating Collection of Information.--The 
     Director shall work with the operating administrations of the 
     Department to establish and implement the Bureau's data 
     programs and to improve the coordination of information 
     collection efforts with other Federal agencies.
       [``(e) Supporting Transportation Decisionmaking.--The 
     Director shall ensure that the statistics compiled under this 
     section are relevant for transportation policy, planning, and 
     decision making by the Federal Government, State and local 
     governments, transportation-related associations, private 
     businesses, and the public. The Director shall provide, to 
     the Department's other operating administrations, technical 
     assistance on collecting, compiling, analyzing and verifying 
     transportation data and statistics and the design of surveys.
       [``(f) Research and Development Grants.--
       [(1) The Secretary may make grants to, or enter into 
     cooperative agreements or contracts with, public and 
     nonprofit private entities (including State transportation 
     departments, metropolitan planning organizations, and 
     institutions of higher education) if the grants--
       [``(A) provide for an alternative means of accomplishing 
     program-related research;
       [``(B) contribute to research and development of new 
     methods of data collection; or
       [``(C) improve the methods for sharing geographic data.
       [``(2) Not more than $500,000 of the amounts made available 
     to carry out this section in a fiscal year may be used for 
     Research and Development Grants.
       [``(g) Transportation Statistics Annual Report.--By March 
     31 of each year, the Director shall transmit to the President 
     and Congress a report that includes information on the 
     subjects covered by subsection (c) of this section, 
     documentation of the methods used to obtain the information 
     and ensure the quality of the statistics presented in the 
     report, and recommendations for improving transportation 
     statistical information.
       [``(h) Proceeds of Data Product Sales.--Notwithstanding 
     section 3302 of title 31, United States Code, funds received 
     by the Bureau from the sale of data products, for necessary 
     expenses incurred, may be credited to the Highway Trust Fund 
     (other than the Mass Transit Account) for the purpose of 
     reimbursing the Bureau for the expenses.
       [``(i) Limitations on Statutory Construction.--Nothing in 
     this section shall be construed to--
       [``(1) authorize the Bureau to require any other department 
     or agency to collect data; or
       [``(2) reduce the authority of any other officer of the 
     Department of Transportation to collect and disseminate data 
     independently.
       [``(j) Mandatory Response Authority for Freight Data 
     Collection.--Whoever, being the owner, official, agent, 
     person in charge, or assistant to the person in charge, of 
     any corporation, company, business, institution, 
     establishment, or organization of any nature whatsoever, 
     neglects or refuses, when requested by the Director or other 
     authorized officer, employee or contractor of the Bureau, to 
     answer completely and correctly to the best of his/her 
     knowledge all questions relating to the corporation, company, 
     business, institution, establishment, or other organization, 
     or to records or statistics in his/her official custody, 
     contained in a data collection request prepared and submitted 
     under the authority of subsection (c)(1), shall be fined not 
     more than $500; and if the individual willfully gives a false 
     answer to a question, shall be fined not more than $10,000.
       [``(k) Prohibition on Certain Disclosures.--
       [``(1) An officer, employee or contractor of the Bureau may 
     not--
       [``(A) make any disclosure in which the data provided by an 
     individual or organization under subsection (c) can be 
     identified;
       [``(B) use the information provided under subsection (c) 
     for a nonstatistical purpose; or
       [``(C) permit anyone other than an individual authorized by 
     the Director to examine any individual report provided under 
     subsection (c).
       [``(2)(A) No department, bureau, agency, officer, or 
     employee of the United States (except the Director in 
     carrying out this section) may require, for any reason, a 
     copy of any report that has been filed under subsection (c) 
     with the Bureau or retained by an individual respondent.
       [``(B) A copy of a report described in subparagraph (A) 
     that has been retained by an individual respondent or filed 
     with the Bureau or any of its employees, contractors, or 
     agents--
       [``(i) shall be immune from legal process; and
       [``(ii) shall not, without the consent of the individual 
     concerned, be admitted as evidence or used for any purpose in 
     any action, suit, or other judicial or administrative 
     proceeding.
       [``(C) This subsection shall apply only to reports that 
     permit information concerning an individual or organization 
     to be reasonably inferred by direct or indirect means.
       [``(3) In a case in which the Bureau is authorized by 
     statute to collect data or information for a nonstatistical 
     purpose, the Director shall clearly distinguish the 
     collection of the data or information, by rule and on the 
     collection instrument, so as to inform a respondent that is 
     requested or required to supply the data or information of 
     the nonstatistical purpose.
       [``(l) Data Access.--The Director shall have access to 
     transportation and transportation-related information in the 
     possession of any Federal agency except information--
       [``(1) the disclosure of which to another Federal agency is 
     expressly prohibited by law; or
       [``(2) the disclosure of which the agency so requested 
     determines would significantly impair the discharge of 
     authorities and responsibilities which have been delegated 
     to, or vested by law, in such agency.
       [``(m) Advisory Council on Transportation Statistics.--
       [``(1) The Bureau of Transportation Statistics has an 
     Advisory Council on Transportation Statistics.
       [``(2) It shall be the function of the advisory council 
     established under this subsection to advise the Director of 
     the Bureau of Transportation Statistics on transportation 
     statistics and analyses, including whether or not the 
     statistics and analysis disseminated by the Bureau of 
     Transportation Statistics are of high quality and are based 
     upon the best available objective information.
       [``(3) The advisory council established under this 
     subsection shall be composed of not more than 6 members 
     appointed by the Director who are not officers or employees 
     of the United States and who have expertise in transportation 
     data collection or analysis or application (except for 1 
     member who shall have expertise in economics and 1 member who 
     shall have expertise in statistics).
       [``(4) The Federal Advisory Committee Act (5 App. U.S.C.) 
     shall apply to the advisory council established under this 
     section, except that section 14 of the Federal Advisory 
     Committee Act shall not apply to the Advisory Committee 
     established under this section.''.

        [Subtitle E--Intelligent Transportation Systems Research

     [SEC. 5501. SHORT TITLE.

       [This subtitle may be cited as the ``Intelligent 
     Transportation Systems Act of 2003''.

     [SEC. 5502. GOALS AND PURPOSES.

       [(a) Goals.--The goals of the intelligent transportation 
     system program include--
       [(1) Enhancement of surface transportation efficiency and 
     facilitation of intermodalism and international trade to 
     enable existing facilities to meet a significant portion of 
     future transportation needs, including public access to 
     employment, goods, and services, and to reduce regulatory, 
     financial, and other transaction costs to public agencies and 
     system users;
       [(2) Achievement of national transportation safety goals, 
     including the enhancement of safe operation of motor vehicles 
     and nonmotorized vehicles as well as improved emergency 
     response to a crash, with particular emphasis on decreasing 
     the number and severity of collisions;
       [(3) Protection and enhancement of the natural environment 
     and communities affected by surface transportation, with 
     particular emphasis on assisting State and local governments 
     to achieve national environmental goals;
       [(4) Accommodation of the needs of all users of surface 
     transportation systems, including operators of commercial 
     vehicles, passenger vehicles, and motorcycles, including 
     individuals with disabilities; and
       [(5) Improvement of the Nation's ability to respond to 
     security related or other man made emergencies and natural 
     disasters and enhancement of national defense mobility.
       [(b) Purposes.--The Secretary shall implement activities 
     under the intelligent system transportation program to, at a 
     minimum--
       [(1) expedite, in both metropolitan and rural areas, 
     deployment and integration of intelligent transportation 
     systems for consumers of passenger and freight 
     transportation;

[[Page 798]]

       [(2) ensure that Federal, State, and local transportation 
     officials have adequate knowledge of intelligent 
     transportation systems for full consideration in the 
     transportation planning process;
       [(3) improve regional cooperation and operations planning 
     for effective intelligent transportation system deployment;
       [(4) promote the innovative use of private resources;
       [(5) facilitate, in cooperation with the motor vehicle 
     industry, the introduction of a vehicle-based safety 
     enhancing system;
       [(6) support the application of intelligent transportation 
     systems that increase the safety and efficiency of commercial 
     vehicle operations; and
       [(7) develop a workforce capable of developing, operating, 
     and maintaining intelligent transportation systems.

     [SEC. 5503. GENERAL AUTHORITIES AND REQUIREMENTS.

       [(a) Scope.--Subject to the provisions of this subtitle, 
     the Secretary shall conduct an ongoing intelligent 
     transportation system program to research, develop, and 
     operationally test intelligent transportation systems and 
     advance nationwide deployment of such systems as a component 
     of the surface transportation systems of the United States.
       [(b) Policy.--Intelligent transportation system research 
     projects and operational tests funded pursuant to this 
     subtitle shall encourage and not displace public-private 
     partnerships or private sector investment in such tests and 
     projects.
       [(c) Cooperation With Governmental, Private, and 
     Educational Entities.--The Secretary shall carry out the 
     intelligent transportation system program in cooperation with 
     State and local governments and other public entities, the 
     United States private sector, the Federal laboratories, and 
     colleges and universities, including historically black 
     colleges and universities and other minority institutions of 
     higher education.
       [(d) Consultation With Federal Officials.--In carrying out 
     the intelligent transportation system program, the Secretary, 
     as appropriate, shall consult with the Secretary of Commerce, 
     the Secretary of the Treasury, the Administrator of the 
     Environmental Protection Agency, the Secretary of Homeland 
     Security, the Director of the National Science Foundation, 
     and the heads of other Federal departments and agencies.
       [(e) Technical Assistance, Training, and Information.--The 
     Secretary may provide technical assistance, training, and 
     information to State and local governments seeking to 
     implement, operate, maintain, or evaluate intelligent 
     transportation system technologies and services.
       [(f) Transportation Planning.--The Secretary may provide 
     funding to support adequate consideration of transportation 
     systems management and operations, including intelligent 
     transportation systems, within metropolitan and statewide 
     transportation planning processes.
       [(g) Information Clearinghouse.--
       [(1) In general.--The Secretary shall--
       [(A) maintain a repository for technical and safety data 
     collected as a result of federally sponsored projects carried 
     out under this subtitle; and
       [(B) on request, make that information (except for 
     proprietary information and data) readily available to all 
     users of the repository at an appropriate cost.
       [(2) Agreement.--
       [(A) In general.--The Secretary may enter into an agreement 
     with a third party for the maintenance of the repository for 
     technical and safety data under paragraph (1)(A) of this 
     subsection.
       [(B) Federal financial assistance.--If the Secretary 
     delegates the responsibility, the entity to which the 
     responsibility is delegated shall be eligible for Federal 
     financial assistance under this section.
       [(h) Advisory Committees.--
       [(1) In general.--In carrying out this subtitle, the 
     Secretary may use one or more advisory committees.
       [(2) Applicability of federal advisory committee act.--Any 
     advisory committee so used shall be subject to the Federal 
     Advisory Committee Act (5 U.S.C. App.).
       [(i) Evaluations.--
       [(1) Guidelines and requirements.--
       [(A) In general.--The Secretary shall issue guidelines and 
     requirements for the evaluation of operational tests and 
     deployment projects carried out under this subtitle.
       [(B) Objectivity and independence.--The guidelines and 
     requirements issued under subparagraph (A) shall include 
     provisions to ensure the objectivity and independence of the 
     evaluator so as to avoid any real or apparent conflict of 
     interest or potential influence on the outcome by parties to 
     any such test or deployment project or by any other formal 
     evaluation carried out under this subtitle.
       [(C) Funding.--The guidelines and requirements issued under 
     subparagraph (A) shall establish evaluation funding levels 
     based on the size and scope of each test or project that 
     ensure adequate evaluation of the results of the test or 
     project.
       [(2) Special rule.--Any survey, questionnaire, or interview 
     that the Secretary considers necessary to carry out the 
     evaluation of any test, deployment project, or program 
     assessment activity under this subtitle shall not be subject 
     to chapter 35 of title 44.
       [(j) Use of Rights-of-Way.--Intelligent transportation 
     system projects specified in sections 5117(b)(3) and 
     5117(b)(6) of the Transportation Equity Act for the 21st 
     Century and involving privately owned intelligent 
     transportation system components that are carried out using 
     funds made available from the Highway Trust Fund shall not be 
     subject to any law or regulation of a State or political 
     subdivision of a State prohibiting or regulating commercial 
     activities in the rights-of-way of a highway for which 
     Federal-aid highway funds have been utilized for planning, 
     design, construction, or maintenance, if the Secretary of 
     Transportation determines that such use is in the public 
     interest. Nothing in this subsection shall affect the 
     authority of a State or political subdivision of a State to 
     regulate highway safety.

     [SEC. 5504. NATIONAL ARCHITECTURE AND STANDARDS.

       [(a) In General.--
       [(1) Development, implementation, and maintenance.--
     Consistent with section 12(d) of the National Technology 
     Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110 
     Stat. 783), the Secretary shall develop, implement, and 
     maintain a national architecture and supporting standards and 
     protocols to promote the widespread use and evaluation of 
     intelligent transportation system technology as a component 
     of the surface transportation systems of the United States.
       [(2) Interoperability and efficiency.--To the maximum 
     extent practicable, the national architecture shall promote 
     interoperability among, and efficiency of, intelligent 
     transportation system technologies implemented throughout the 
     United States.
       [(3) Use of standards development organizations.--In 
     carrying out this section, the Secretary may use the services 
     of such standards development organizations as the Secretary 
     determines to be appropriate.
       [(b) Provisional Standards.--
       [(1) In general.--If the Secretary finds that the 
     development or balloting of an intelligent transportation 
     system standard jeopardizes the timely achievement of the 
     objectives identified in subsection (a), the Secretary may 
     establish a provisional standard after consultation with 
     affected parties, and using, to the extent practicable, the 
     work product of appropriate standards development 
     organizations.
       [(2) Period of effectiveness.--A provisional standard 
     established under paragraph (1) or (2) shall be published in 
     the Federal Register and remain in effect until the 
     appropriate standards development organization adopts and 
     publishes a standard.
       [(c) Conformity With National Architecture.--
       [(1) In general.--Except as provided in paragraphs (2) and 
     (3), the Secretary shall ensure that intelligent 
     transportation system projects carried out using funds made 
     available from the Highway Trust Fund, including funds made 
     available under this subtitle to deploy intelligent 
     transportation system technologies, conform to the national 
     architecture, applicable standards or provisional standards, 
     and protocols developed under subsection (a).
       [(2) Secretary's discretion.--The Secretary may authorize 
     exceptions to paragraph (1) for--
       [(A) projects designed to achieve specific research 
     objectives outlined in the National ITS Program Plan or the 
     Surface Transportation Research and Development Strategic 
     Plan developed under section 508 of title 23, United States 
     Code; or
       [(B) the upgrade or expansion of an intelligent 
     transportation system in existence on the date of enactment 
     of this subtitle, if the Secretary determines that the 
     upgrade or expansion--
       [(i) would not adversely affect the goals or purposes of 
     this subtitle;
       [(ii) is carried out before the end of the useful life of 
     such system; and
       [(iii) is cost-effective as compared to alternatives that 
     would meet the conformity requirement of paragraph (1).
       [(3) Exceptions.--Paragraph (1) shall not apply to funds 
     used for operation or maintenance of an intelligent 
     transportation system in existence on the date of enactment 
     of this subtitle.

     [SEC. 5505. RESEARCH AND DEVELOPMENT.

       [(a) In General.--The Secretary shall carry out a 
     comprehensive program of intelligent transportation system 
     research, development, and operational tests of intelligent 
     vehicles and intelligent infrastructure systems, and other 
     similar activities that are necessary to carry out this 
     subtitle.
       [(b) Priority Areas.--Under the program, the Secretary 
     shall give higher priority to funding projects that--
       [(1) enhance mobility and productivity through improved 
     traffic management, incident management, transit management, 
     freight management, road weather management, toll collection, 
     traveler information, or highway operations systems;
       [(2) enhance safety through improved crash-avoidance and 
     protection, crash and other notification, commercial vehicle 
     operations, and infrastructure-based or cooperative safety 
     systems;
       [(3) enhance security through improved response to security 
     related emergencies, and

[[Page 799]]

     improved transportation security systems; and
       [(4) facilitate the integration of intelligent 
     infrastructure, vehicle, and control technologies.
       [(c) Federal Share.--The Federal share of the cost of 
     operational tests and demonstrations under subsection (a) 
     shall not exceed 80 percent.

     [SEC. 5506. USE OF FUNDS.

       [(a) Outreach and Public Relations Limitation.--
       [(1) In general.--For each fiscal year, not more than 
     $5,000,000 of the funds made available to carry out this 
     subtitle shall be used for intelligent transportation system 
     outreach, public relations, displays, scholarships, tours, 
     and brochures.
       [(2) Applicability.--Paragraph (1) shall not apply to 
     intelligent transportation system training or the publication 
     or distribution of research findings, technical guidance, or 
     similar documents.
       [(b) Infrastructure Development.--Funds made available to 
     carry out this subtitle for operational tests--
       [(1) shall be used primarily for the development of 
     intelligent transportation system infrastructure; and
       [(2) to the maximum extent practicable, shall not be used 
     for the construction of physical highway and transit 
     infrastructure unless the construction is incidental and 
     critically necessary to the implementation of an intelligent 
     transportation system project.

     [SEC. 5507. DEFINITIONS.

       [In this subtitle, the following definitions apply:
       [(1) Incident.-- In this section, the term ``incident'' 
     means a crash, a natural disaster, work zone activity, 
     special event, or other emergency road user occurrence that 
     adversely affects or impedes the normal flow of traffic.
       [(2) Intelligent transportation infrastructure.--The term 
     ''intelligent transportation infrastructure'' means fully 
     integrated public sector intelligent transportation system 
     components, as defined by the Secretary.
       [(3) Intelligent transportation system.--The term 
     ''intelligent transportation system'' means electronics, 
     communications, or information processing used singly or in 
     combination to improve the efficiency or safety of a surface 
     transportation system.
       [(4) National architecture.--The term ``national 
     architecture'' means the common framework for 
     interoperability that defines--
       [(A) the functions associated with intelligent 
     transportation system user services;
       [(B) the physical entities or subsystems within which the 
     functions reside;
       [(C) the data interfaces and information flows between 
     physical subsystems; and
       [(D) the communications requirements associated with the 
     information flows.
       [(5) Project.--The term ``project'' means a undertaking to 
     research, develop, or operationally test intelligent 
     transportation systems or any other undertaking eligible for 
     assistance under this subtitle.
       [(6) Standard.--The term ``standard'' means a document 
     that--
       [(A) contains technical specifications or other precise 
     criteria for intelligent transportation systems that are to 
     be used consistently as rules, guidelines, or definitions of 
     characteristics so as to ensure that materials, products, 
     processes, and services are fit for their purposes; and
       [(B) may support the national architecture and promote--
       [(i) the widespread use and adoption of intelligent 
     transportation system technology as a component of the 
     surface transportation systems of the United States; and
       [(ii) interoperability among intelligent transportation 
     system technologies implemented throughout the States.
       [(7) State.--The term ``State'' has the meaning given the 
     term under section 101 of title 23, United States Code.
       [(8) Transportation systems management and operations.--The 
     term ``transportation systems management and operations'' has 
     the meaning given the term under section 101(a) of title 23, 
     United States Code, as amended by section 1701 of this Act.

     [SEC. 5508. REPEAL.

       [The Transportation Equity Act for the 21st Century is 
     amended by striking subtitle C of title V.

       [TITLE VI--TRANSPORTATION PLANNING; INTERMODAL FACILITIES

     [SEC. 6001. TRANSPORTATION PLANNING.

       [(a) In General.--Subtitle III of title 49, United States 
     Code, is amended by adding the following after chapter 51:

                 [``CHAPTER 52--TRANSPORTATION PLANNING

[``Sec.
[``5201. Policy.
[``5202. Definitions.
[``5203. Metropolitan transportation planning.
[``5204. Statewide transportation planning.

     [``Sec. 5201. Policy

       [``(a) It is in the national interest to--
       [``(1) encourage and promote the safe and efficient 
     management, operation, and development of surface 
     transportation systems that will serve the mobility needs of 
     people and freight and foster economic growth and development 
     within and between States and urbanized areas, while 
     minimizing transportation-related fuel consumption and air 
     and water pollution through metropolitan and statewide 
     transportation planning processes identified in this chapter;
       [``(2) encourage the continued improvement and evolution of 
     the metropolitan and statewide transportation planning 
     processes by metropolitan planning organizations, State 
     Departments of Transportation, and public transit operators 
     through the use of performance-based approaches in the 
     development of transportation plans and investments as guided 
     by the planning factors identified in subsection 5203(f) and 
     5204(d) of this chapter; and
       [``(3) encourage private enterprise participation in 
     projects and transportation services.
       [``(b) The provisions of sections 5203-5204 of this chapter 
     shall be jointly administered by the Federal Highway and 
     Federal Transit Administrators.

     [``Sec. 5202. Definitions

       [``(a) Unless otherwise specified in subsection (b), the 
     definitions in section 101(a) of title 23 and section 5302 of 
     this title are applicable to this chapter.
       [``(b) As used in this chapter--
       [``(1) Consultation.--The term `consultation' means that 
     one party confers with another identified party in accordance 
     with an established process and, prior to taking action(s), 
     considers that party's views and periodically informs that 
     party about action(s) 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 as defined in section 5203(c) of this title.
       [``(3) Metropolitan planning organization (MPO).--The term 
     `metropolitan planning organization' means the Policy Board 
     of the organization created as a result of the designation 
     process defined in section 5203(b) of this title.
       [``(4) Non-metropolitan area.--The term `non-metropolitan 
     area' means the geographic area outside designated 
     metropolitan planning areas.
       [``(5) Non-metropolitan local official.--The term `non-
     metropolitan local official' means elected and appointed 
     officials of general purpose local government, in non-
     metropolitan areas, with jurisdiction/responsibility for 
     transportation.
       [``(6) Urbanized area.--The term `urbanized area' means a 
     geographic area with a population of 50,000 or more, as 
     designated by the Bureau of the Census.
       [``(7) State.--The term `State' means a State of the United 
     States, the District of Columbia, and Puerto Rico.

     [``Sec. 5203. Metropolitan transportation planning

       [``(a) General Requirements.--
       [``(1) Development of plans.--To accomplish the objectives 
     stated in section 5201, metropolitan planning organizations 
     designated under subsection (b) of this section, in 
     cooperation with the State and public transportation 
     operators, shall develop transportation plans for 
     metropolitan planning areas of the State.
       [``(2) Contents.--The plans for each metropolitan area 
     shall provide for the development and integrated management 
     and operation of transportation systems and facilities 
     (including pedestrian walkways and bicycle transportation 
     facilities) that will function as an intermodal 
     transportation system for the metropolitan 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.
       [``(b) Designation of Metropolitan Planning 
     Organizations.--
       [``(1) In general.--To carry out the transportation 
     planning process required by this section, a metropolitan 
     planning organization (MPO) shall be designated for each 
     urbanized area with a population of more than 50,000 
     individuals--
       [``(A) by agreement between the Governor and units of 
     general purpose local government that together represent at 
     least 75 percent of the affected population (including the 
     largest incorporated city (based on population) as named by 
     the Bureau of the Census); or
       [``(B) in accordance with procedures established by 
     applicable State or local law.
       [``(2) Structure.--Each metropolitan planning organization 
     that serves an area identified as a transportation management 
     area,

[[Page 800]]

     when designated or redesignated under this subsection, shall 
     consist of--
       [``(A) local elected officials;
       [``(B) officials of public agencies that administer or 
     operate major modes of transportation in the metropolitan 
     area; and
       [``(C) appropriate State officials.
       [``(3) Limitation on statutory construction.--Nothing in 
     this subsection shall be construed to interfere with the 
     authority, under any State law in effect on December 18, 
     1991, of a public agency with multimodal transportation 
     responsibilities to--
       [``(A) develop plans and programs for adoption by a 
     metropolitan planning organization; and
       [``(B) develop long-range capital plans, coordinate transit 
     services and projects, and carry out other activities 
     pursuant to State law.
       [``(4) Continuing designation.--A designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       [``(5) Redesignation procedures.--A metropolitan planning 
     organization may be redesignated by agreement between the 
     Governor and units of general purpose local government that 
     together represent at least 75 percent of the existing 
     planning area population (including the largest incorporated 
     city (based on population) as named by the Bureau of the 
     Census) as appropriate to carry out this section.
       [``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be designated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and complexity 
     of the existing metropolitan planning area make designation 
     of more than 1 metropolitan planning organization for the 
     area appropriate.
       [``(c) Metropolitan Planning Area Boundaries.--
       [``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.
       [``(2) Included area.--Each metropolitan planning area--
       [``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period 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 the manner described 
     in subsection (c)(5).
       [``(5) New metropolitan planning areas in nonattainment.--
     In the case of an urbanized area 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 the manner described in 
     subsection (b)(1);
       [``(B) shall encompass the areas described in paragraph 
     (c)(2)(A);
       [``(C) may encompass the areas described in paragraph 
     (c)(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.
       [``(d) Coordination in Multistate Areas.--
       [``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       [``(2) Interstate compacts.--The consent of Congress is 
     granted to any 2 or more States--
       [``(A) to enter into agreements or compacts, not in 
     conflict with any law of the United States, for cooperative 
     efforts and mutual assistance in support of activities 
     authorized under this section as the activities pertain to 
     interstate areas and localities within the States; and
       [``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       [``(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 5204.
       [``(C) Interstate compact.--
       [``(i) In general.--Subject to clause (ii), notwithstanding 
     subsection (b), to carry out the transportation planning 
     process required by this section, the consent of Congress is 
     granted to the States of California and Nevada to designate a 
     metropolitan planning organization for the Lake Tahoe region, 
     by agreement between the Governors of the States of 
     California and Nevada and units of general purpose local 
     government that together represent at least 75 percent of the 
     affected population (including the central city or cities (as 
     defined by the Bureau of the Census)), or in accordance with 
     procedures established by applicable State or local law.
       [``(ii) Involvement of federal land management agencies.--

       [``(I) Representation.--The policy board of a metropolitan 
     planning organization designated under clause (i) shall 
     include a representative of each Federal land management 
     agency that has jurisdiction over land in the Lake Tahoe 
     region.
       [``(II) Funding.--In addition to funds made available to 
     the metropolitan planning organization under other provisions 
     of title 23 and under chapter 53 of this title, 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.
       [``(e) Coordination of MPOS.--
       [``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act, each 
     metropolitan planning organization shall consult with the 
     other metropolitan planning organizations designated for such 
     area and the State in the coordination of plans required by 
     this section.
       [``(2) Transportation improvements located in multiple 
     mpos.--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 NHS, 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 MPOs and States.
       [``(4) Coordination with other planning processes.--The 
     Secretary shall encourage each MPO 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 planned growth, economic development, environmental 
     protection, airport operations, and freight. 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--
       [``(A) recipients of assistance under chapter 53 of this 
     title;
       [``(B) governmental agencies and nonprofit organizations 
     (including representatives of the agencies and organizations) 
     that receive Federal assistance from a source other than the 
     Department of Transportation to provide non-emergency 
     transportation services; and
       [``(C) recipients of assistance under section 204 of title 
     23.
       [``(f) 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 the following 
     factors as they relate to the performance of the metropolitan 
     area transportation systems to--
       [``(A) support the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency, including through services 
     provided by public and private operators;

[[Page 801]]

       [``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       [``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       [``(D) increase the accessibility and mobility of people 
     and for freight, including through services provided by 
     public and private operators;
       [``(E) protect and enhance the environment, promote energy 
     conservation, and promote consistency between transportation 
     improvements and State and local planned growth and economic 
     development patterns;
       [``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight, including through services provided by public 
     and private operators;
       [``(G) promote efficient system management and operation; 
     and
       [``(H) emphasize 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.
       [``(g) Development of Transportation Plan.--
       [``(1) In general.--Each metropolitan planning organization 
     shall prepare, and update at least every five years a 
     transportation plan for its metropolitan planning area in 
     accordance with the requirements of this subsection.
       [``(2) Transportation plan.--A transportation plan under 
     this section shall be in a form that the Secretary determines 
     to be appropriate and shall contain, at a minimum, the 
     following:
       [``(A) An identification of transportation facilities 
     (including but not necessarily limited to major roadways, 
     transit, multimodal and intermodal facilities, and intermodal 
     connectors) that should function as an integrated 
     metropolitan transportation system, giving emphasis to those 
     facilities that serve important national and regional 
     transportation functions. In formulating the transportation 
     plan, the metropolitan planning organization shall consider 
     factors described in subsection (f) as such factors relate to 
     a 20-year forecast period.
       [``(B) A financial plan that demonstrates how the adopted 
     transportation plan can be implemented, indicates resources 
     from public and private sources that are reasonably expected 
     to be made available to carry out the plan, and recommends 
     any additional financing strategies for needed projects and 
     programs. The financial plan may include, for illustrative 
     purposes, additional projects that would be included in the 
     adopted transportation plan if reasonable additional 
     resources beyond those identified in the financial plan were 
     available. However, no illustrative project may be advanced 
     without an action of the Secretary. 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.
       [``(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.
       [``(E) Proposed transportation and transit enhancement 
     activities.
       [``(3) Coordination with clean air act agencies.--In 
     metropolitan areas which are in nonattainment for ozone or 
     carbon monoxide under the Clean Air Act, the metropolitan 
     planning organization shall coordinate the development of 
     transportation plan with the process for development of the 
     transportation control measures of the State implementation 
     plan required by the Clean Air Act.
       [``(4) Transportation conformity.--
       [``(A) For the purposes of Section 7506 of title 42, United 
     States Code, the transportation plan shall be considered to 
     be a transportation plan or a portion of a transportation 
     plan, developed pursuant to this section that extends for the 
     longest of the following periods--
       [``(i) the first 10-year period of any such plan,
       [``(ii) the latest year in the area's applicable 
     implementation plan which contains a motor vehicle emissions 
     budget, or
       [``(iii) the completion date of a regionally significant 
     project, if the project requires approval before the 
     subsequent conformity determination.
       [``(B) A regional motor vehicle emissions analysis for the 
     last year of the transportation plan shall be developed for 
     information purposes only, if such year extends beyond the 
     time frame established by subparagraph (A). The results of 
     the analysis shall be provided to involved governors, the 
     Administrator of the Environmental Protection Agency, and the 
     Secretary of the Department of Transportation, and should be 
     considered by air quality and transportation planning 
     agencies in subsequent updates of air quality and 
     transportation plans. The results of this analysis shall be 
     made available to the public.
       [``(5) Participation by interested parties.--Before the 
     approval of a transportation plan by the Governor and 
     metropolitan planning organization, each metropolitan 
     planning organization shall provide citizens, affected public 
     agencies, representatives of public transportation employees, 
     freight shippers, providers of freight transportation 
     services, private providers of transportation, 
     representatives of users of public transit, representatives 
     of users of pedestrian walkways and bicycle transportation 
     facilities, and other interested parties with a reasonable 
     opportunity to comment on the transportation plan, in a 
     manner that the Secretary deems appropriate.
       [``(6) Approval of transportation plan.--
       [``(A) Each transportation plan prepared by a metropolitan 
     planning organization shall be--
       [``(i) approved by the MPO, and
       [``(ii) submitted to the Governor for approval of the first 
     five years of the plan.
       [``(B) The projects listed in the first five years of the 
     plan may be selected for advancement consistent with the 
     project selection requirements. Major amendments (addition, 
     deletion, or concept and scope change of a regionally 
     significant project) to this list would require appropriate 
     public involvement, financial planning, transportation 
     conformity analyses and a finding by the FHWA and FTA that 
     the amended plan was produced in a manner consistent with 
     this section.
       [``(7) Included projects.--
       [``(A) Projects under chapter 1 of title 23 and chapter 53 
     of title 49.--A transportation plan developed under this 
     section for a metropolitan area shall include the projects 
     and strategies within the area that are proposed for funding 
     under chapter 1 of title 23 and chapter 53 of title 49.
       [``(B) Projects under chapter 2 of title 23--regionally 
     significant projects.--Regionally significant projects 
     proposed for funding under chapter 2 of title 23 shall be 
     identified individually in the metropolitan transportation 
     plan.
       [``(C)  Other projects.--Projects proposed for funding 
     under chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually in the metropolitan transportation 
     plan.
       [``(8) Selection of projects.--
       [``(A) In general.--Except as otherwise provided in 
     subsection (h)(4) the selection of federally funded projects 
     in metropolitan planning areas shall be carried out, from the 
     approved transportation plan--
       [``(i) by--

       [``(I) in the case of projects under chapter 1 of title 23, 
     the State;
       [``(II) in the case of projects under section 5307 of this 
     title, the designated transit funding recipients; and
       [(III) in the case of projects under 5308, 5310, 5311, and 
     5317, the State; and

       [``(ii) in cooperation with the metropolitan planning 
     organization.
       [``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project from the first five years of 
     the plan included in the approved transportation plan in 
     place of another project in the same five-year period.
       [``(9) Publication.--
       [``(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 
     five years 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 five years of the transportation 
     plan.
       [``(h) Transportation Management Areas.--
       [``(1) Required identification.--The Secretary shall 
     identify as a transportation management area each urbanized 
     area (as defined by the Bureau of the Census) with a 
     population of over 200,000 individuals.
       [``(2) Transportation plans.--In a metropolitan planning 
     area serving a transportation management area, transportation 
     plans shall be based on a continuing and comprehensive 
     transportation planning process carried out by the 
     metropolitan planning organization in cooperation with the 
     State and transit operators.
       [``(3) Congestion management system.--Within a metropolitan 
     planning area serving a transportation management area, the 
     transportation planning process under this

[[Page 802]]

     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 chapter 53 of this 
     title through the use of travel demand reduction and 
     operational management strategies. The Secretary shall 
     establish an appropriate phase-in schedule for compliance 
     with the requirements of this section but no sooner than one-
     year after the identification of a transportation management 
     area.
       [``(4) Selection of projects.--
       [``(A) In general.--All federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under title 23 
     (excluding projects carried out on the National Highway 
     System and projects carried out under the bridge program or 
     the Interstate maintenance program) or under chapter 53 of 
     this title 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, carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area, on the National 
     Highway System and projects carried out within such 
     boundaries under the bridge program or the Interstate 
     maintenance program under title 23 shall be selected for 
     implementation from the approved 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 an 
     MPO serving a transportation management area is being carried 
     out in accordance with applicable provisions of Federal law; 
     and
       [``(ii) subject to subparagraph (B), certify, not less 
     often than once every 5 years that the requirements of this 
     paragraph are met with respect to the metropolitan planning 
     process.
       [``(B) Requirements for certification.--The Secretary may 
     make the certification under subparagraph (A) if--
       [``(i) the transportation planning process complies with 
     the requirements of this section and other applicable 
     requirements of Federal law; and
       [``(ii) there is a transportation plan for the metropolitan 
     planning area that has been approved by the metropolitan 
     planning organization and the Governor.
       [``(C) Effect of failure to certify.--
       [``(i) Withholding of project funds.--If a metropolitan 
     planning process of an metropolitan planning organization 
     serving a TMA is not certified, the Secretary may withhold a 
     portion or all of the funds available to metropolitan 
     planning area of the metropolitan planning organization for 
     projects funded under title 23 and chapter 53 of this title.
       [``(ii) Restoration of withheld funds.--The withheld funds 
     shall be restored to the metropolitan planning area at such 
     time as the metropolitan planning process is certified by the 
     Secretary.
       [``(D) Review of certification.--In making certification 
     determinations under this paragraph, the Secretary shall 
     provide for public involvement appropriate to the 
     metropolitan area under review.
       [``(i)  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, 
     taking into account 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.).
       [``(j) Additional Requirements for Certain Nonattainment 
     Areas.--
       [``(1) In general.--Notwithstanding any other provisions of 
     title 23 or chapter 53 of this title, for transportation 
     management areas classified as nonattainment for ozone or 
     carbon monoxide pursuant to the Clean Air Act, Federal funds 
     may not be advanced in such area for any highway project that 
     will result in a significant increase in 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 (c).
       [``(k) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed to confer on a metropolitan 
     planning organization the authority to impose legal 
     requirements on any transportation facility, provider, or 
     project not eligible under title 23 or chapter 53 of this 
     title.
       [``(l) Funding.--Funds set aside under section 104(f) of 
     title 23 or section 5305(h) of this title shall be available 
     to carry out this section.
       [``(m) Continuation of Current Review Practice.--Since 
     plans described in this section are subject to a reasonable 
     opportunity for public comment, individual projects included 
     in plans are subject to review under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
     and decisions by the Secretary concerning plans described in 
     this section have not been reviewed under such Act as of 
     January 1, 1997, any decision by the Secretary 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.).
       [``(n) Relationship to the NEPA Process.--
       [``(1) To expedite the planning and development of 
     transportation improvements in compliance with this section 
     and section 5204 and the National Environmental Policy Act 
     (42 U.S.C. 4321 et seq.), to facilitate compliance with the 
     Clean Water Act (33 U.S.C. 1251 et seq.) and other Federal 
     environmental laws, and to fulfill the directive in section 
     1308 of the Transportation Equity Act for the 21st Century, 
     Public Law 105-206, to integrate the major investment study 
     requirement into the transportation planning and National 
     Environmental Policy Act processes, the Secretary and heads 
     of other Federal agencies shall presume that the results of 
     studies developed as part of the planning process establish 
     the basis for an environmental assessment or impact 
     statement, provided that such studies, pursuant to the 
     provisions of this section--
       [``(A) are consistent with subsection (a)(4) of this 
     section;
       [``(B) provided opportunities for citizens and interested 
     parties to participate during the studies;
       [``(C) included consideration of an appropriate range of 
     alternatives, such as alternative modes, technologies, 
     general alignments, and policies; and
       [``(D) considered the planning factors of subsection 
     (f)(1).
       [``(2) The results of studies developed as part of the 
     planning process and that are presumed to establish the basis 
     for an environmental assessment or impact statement, as 
     described in subsection (1) of this section, include, but are 
     not limited to--
       [``(A) the purpose and need;
       [``(B) the alternatives selected for evaluation in an 
     environmental assessment or impact statement; and
       [``(C) an assessment of environmental impacts related to 
     development growth, including indirect and cumulative 
     effects, that is consistent with local land use, growth 
     management, or development plans.
       [``(3) The results of studies developed during the planning 
     process may be appended to or incorporated by reference in 
     and used to substantiate an environmental assessment or 
     impact statement.

     [``Sec. 5204. Statewide transportation planning

       [``(a) General Requirements.--
       [``(1) Development of plans and programs.--To accomplish 
     the objectives stated in section 5201, each State shall 
     develop a statewide transportation plan and a statewide 
     Transportation Improvement Program (STIP) for all areas of 
     the State subject to section 5203.
       [``(2) Contents.--The statewide transportation plan and the 
     STIP 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 State and an integral part of an intermodal 
     transportation system for the United States.
       [``(3) Process of development.--The process for developing 
     the statewide plan and the STIP shall provide for 
     consideration of all modes of transportation and the policies 
     stated in section 5201, and shall be continuing, cooperative, 
     and comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       [``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--A State shall--
       [``(1) coordinate planning carried out under this section 
     with the transportation planning activities carried out under 
     section 5203 of this title for metropolitan areas of the 
     State and with other related Statewide planning activities 
     such as trade and economic development and related multi-
     State planning efforts,
       [``(2) develop the transportation portion of the State 
     implementation plan as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.), and
       [``(3) participate in the integration of planning and 
     environmental studies pursuant to section 5203(n) of this 
     chapter.
       [``(c) Interstate Agreements.--The consent of Congress is 
     granted to 2 or more States entering into agreements or 
     compacts, not in conflict with any law of the United States, 
     for cooperative efforts and mutual assistance in support of 
     activities authorized under this section related to

[[Page 803]]

     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, non-metropolitan areas, and metropolitan areas, 
     especially by enabling global competitiveness, productivity, 
     and efficiency;
       [``(B) increase the safety of the transportation system for 
     motorized and non-motorized 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 planned growth 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) of this 
     subsection 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 statewide 
     transportation plan, the STIP, a project or strategy, or the 
     certification of a planning process.
       [``(e) Additional Requirements.--In carrying out planning 
     under this section, each State shall consider, at a minimum--
       [``(1) with respect to non-metropolitan areas, the concerns 
     of affected local officials with responsibility for 
     transportation;
       [``(2) the concerns of Indian tribal governments and 
     Federal land management agencies that have jurisdiction over 
     land within the boundaries of the State; and
       [``(3) coordination of transportation plans, the STIP, 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 statewide 
     transportation plan, with a minimum 20-year forecast period, 
     updated at least every five years, for all areas of the 
     State, that provides for the development and implementation 
     of the intermodal transportation system of the State.
       [``(2) Consultation with governments.--
       [``(A) Metropolitan areas.--The statewide transportation 
     plan shall be developed for each metropolitan area in the 
     State in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 5203.
       [``(B) Non-metropolitan areas.--With respect to non-
     metropolitan areas, the statewide transportation plan shall 
     be developed in consultation with affected non-metropolitan 
     officials with responsibility for transportation. The 
     Secretary shall not review or approve the consultation 
     process in each State.
       [``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the statewide transportation plan shall be 
     developed in consultation with the tribal government and the 
     Secretary of the Interior.
       [``(3) Participation by interested parties.--In developing 
     the statewide transportation 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 statewide transportation plan 
     may include a financial plan that demonstrates how the 
     adopted statewide transportation plan can be implemented, 
     indicates resources from public and private sources that are 
     reasonably expected to be made available to carry out the 
     plan, and recommends any additional financing strategies for 
     needed projects and programs. The financial plan may include, 
     for illustrative purposes, additional projects that would be 
     included in the adopted statewide transportation plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       [``(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 statewide transportation plan 
     should include capital, operations and management strategies, 
     investments, procedures, and other measures to ensure the 
     preservation and most efficient use of the existing 
     transportation system.
       [``(g) Statewide Transportation Improvement Program 
     (STIP).--
       [``(1) Development.--Each State shall develop a statewide 
     transportation improvement 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 5203.
       [``(B) Non-metropolitan areas.--With respect to each non-
     metropolitan area in the State, the program shall be 
     developed in consultation with affected non-metropolitan 
     local officials with responsibility for transportation. The 
     Secretary shall not review or approve the specific 
     consultation process in the State.
       [``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the program shall be developed in consultation 
     with the tribal Government and the Secretary of the Interior.
       [``(3) Participation by interested parties.--In developing 
     the program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public 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 transportation improvement program 
     developed under this subsection for a state shall include 
     federally supported surface transportation expenditures 
     within the boundaries of the State. The program shall cover a 
     minimum of five years, identify projects by year, be fiscally 
     constrained by year, and be updated at least every five 
     years. An annual listing of projects for which funds have 
     been obligated in the preceding five 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. Regionally significant projects proposed 
     for funding under chapter 2 of title 23 shall be identified 
     individually in the transportation improvement program. Other 
     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. The 
     listing shall be consistent with the funding categories 
     identified in the first five years of each metropolitan 
     transportation plan.
       [``(B) Consistency with statewide transportation plan.--
     Each project shall be--
       [``(i) consistent with the statewide transportation plan 
     developed under this section for the State;
       [``(ii) identical to the project or phase of the project as 
     described in each year of the initial five 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.
       [``(C) Requirement of anticipated full funding.--The STIP 
     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.
       [``(D) Financial plan.--The STIP may include a financial 
     plan that demonstrates how the approved STIP can be 
     implemented, indicates resources from public and private 
     sources that are reasonably expected to be made available to 
     carry out the STIP, and recommends any additional financing 
     strategies for needed projects and programs. The financial 
     plan may include, for illustrative purposes, additional 
     projects that would be included in the adopted transportation 
     plan if reasonable additional resources beyond those 
     identified in the financial plan were available.
       [``(E) Selection of projects from illustrative list.--
       [``(i) No required selection.--Notwithstanding subparagraph 
     (D), a State shall not be required to select any project from 
     the illustrative list of additional projects included in the 
     financial plan under subparagraph (D).
       [``(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 (D) for inclusion in an 
     approved STIP.
       [``(F) Priorities.--The STIP shall reflect the priorities 
     for programming and expenditures of funds, including 
     transportation and transit enhancement activities, required 
     by title 23 and chapter 53 of this title, and transportation 
     control measures included in the State's air quality 
     implementation plan.

[[Page 804]]

       [``(5) Project selection for areas of less than 50,000 
     population.--Projects carried out in areas with populations 
     of less than 50,000 individuals shall be selected, from the 
     approved STIP (excluding projects carried out on the National 
     Highway System and projects carried out under the bridge 
     program or the interstate maintenance program under title 23 
     or sections 5308, 5310, 5311, and 5317 of this title), by the 
     State in cooperation with the affected non-metropolitan local 
     officials with responsibility for transportation. Projects 
     carried out in areas with populations of less than 50,000 
     individuals on the National Highway System or under the 
     bridge program or the interstate maintenance program under 
     title 23 or under sections 5308, 5310, 5311, and 5317 of this 
     title shall be selected, from the approved statewide 
     transportation improvement program, by the State in 
     consultation with the affected local officials with 
     responsibility for transportation.
       [``(6) STIP approval.--A STIP developed under this 
     subsection shall be reviewed and based on a current Planning 
     Finding approved at least every five years by the Secretary.
       [``(7) Planning finding.--A finding shall be made by the 
     Secretary at least every five years that the transportation 
     planning process(es) through which statewide transportation 
     plans and programs are developed are consistent with this 
     section and section 5203.
       [``(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 
     STIP in place of another project in the program.
       [``(h) Funding.--Funds set aside pursuant to section 104(i) 
     of title 23 and 5305(h) 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 
     5203 of this title, State laws, rules or regulations 
     pertaining to congestion management systems or programs may 
     constitute the congestion management system under section 
     5203(h)(3) if the Secretary finds that the State laws, rules 
     or regulations are consistent with, and fulfill the intent 
     of, the purposes of section 5203, as appropriate.
       [``(j) Continuation of Current Review Practice.--Since the 
     statewide transportation plan and the STIP described in this 
     section are subject to a reasonable opportunity for public 
     comment, since individual projects included in the statewide 
     transportation plans and the STIP are subject to review under 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.), and since decisions by the Secretary concerning 
     statewide transportation plans or the STIP described in this 
     section have not been reviewed under such Act as of January 
     1, 1997, any decision by the Secretary concerning a 
     metropolitan or statewide transportation plan or the STIP 
     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 5203(n) of this chapter 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) of this section.''.
       [(b) Consistency of Conformity Timing With the 
     Transportation Plan.--Section 7506(c)(4) of title 42, United 
     States Code, is amended--
       [(1) in subparagraph (B)(ii) by striking ``, but in no case 
     shall such determinations for transportation plans and 
     programs be less frequent than every three years'', and 
     inserting ``but the frequency for making conformity 
     determinations for transportation plans must be consistent 
     with subparagraph (E)''; and
       [(2) by inserting after subparagraph (D) the following:
       [``(E) The frequency for making conformity determinations 
     on updated transportation plans shall be every five years, 
     except when:
       [``(i) the metropolitan planning organization chooses to 
     update a transportation plan more frequently, or
       [``(ii) changes to the applicable implementation plan 
     trigger a new conformity determination, as provided in 
     regulations promulgated by the Administrator pursuant to 
     subparagraph (A) above.''.
       [(c) Conforming Clarification.--Upon date of enactment of 
     this Act, the references to ``program'' and ``improvement 
     program'' in section 7506 of title 42, United States Code, 
     shall refer to the transportation plan developed pursuant to 
     section 5203 of title 49, United States Code.
       [(d) Streamlined State Conformity Rule Requirements.--
     Section 7506(c)(4)(C) of title 42, United States Code, is 
     amended to read as follows:
       [``(C) Such procedures shall also include a requirement 
     that each State shall submit to the Administrator and the 
     Secretary of Transportation, within 24 months of such date of 
     enactment, a revision to its implementation plan that 
     includes criteria and procedures for consultation in 
     accordance with the Administrator's criteria and procedures 
     for consultation required by subparagraph (B)(i) of this 
     paragraph.''.
       [(e) Conforming Amendments.--(1) The table of chapters for 
     title 49, United States Code, is amended by inserting the 
     following after the item relating to chapter 51:

[``52. Transportation Planning..............................5201''.....

       [(2) The chapter analysis for Subtitle III of title 49, 
     United States Code, is amended by inserting the following 
     after the item relating to chapter 51:

[``52. Transportation Planning..............................5201''.....

     [SEC. 6002. INTERMODAL PASSENGER FACILITIES.

       [(a) In General.--Chapter 55 of title 49, United States 
     Code, is amended by adding the following at the end:

           [``SUBCHAPTER III--INTERMODAL PASSENGER FACILITIES

     [Sec. 5571. Policy and purposes

       [``(a) Development and Enhancement of Intermodal Passenger 
     Facilities.--It is in the economic interest of the United 
     States to improve the efficiency of public surface 
     transportation modes by ensuring their connection with and 
     access to intermodal passenger terminals, thereby 
     streamlining the transfer of passengers among modes, 
     enhancing travel options, and increasing passenger 
     transportation operating efficiencies.
       [``(b) General Purposes.--The purposes of this subchapter 
     are to accelerate intermodal integration among North 
     America's passenger transportation modes through--
       [``(1) assuring intercity public transportation access to 
     intermodal passenger facilities;
       [``(2) encouraging the development of an integrated system 
     of public transportation information; and
       [``(3) providing intercity bus intermodal passenger 
     facility grants.

     [Sec. 5572. Definitions

     [``In this subchapter--
       [``(1) `capital project' means a project for--
       [``(A) acquiring, constructing, improving, or renovating an 
     intermodal facility that is related physically and 
     functionally to intercity bus service and establishes or 
     enhances coordination between intercity bus service and 
     transportation, including aviation, commuter rail, intercity 
     rail, public transportation, seaports, and the National 
     Highway System, such as physical infrastructure associated 
     with private bus operations at existing and new intermodal 
     facilities, including special lanes, curb cuts, ticket kiosks 
     and counters, baggage and package express storage, employee 
     parking, office space, security, and signage; and
       [``(B) establishing or enhancing coordination between 
     intercity bus service and transportation, including aviation, 
     commuter rail, intercity rail, public transportation, and the 
     National Highway System through an integrated system of 
     public transportation information.
       [``(2) `commuter service' means service designed primarily 
     to provide daily work trips within the local commuting area.
       [``(3) `intercity bus service' means regularly scheduled 
     bus service for the general public which operates with 
     limited stops over fixed routes connecting two or more urban 
     areas not in close proximity, which has the capacity for 
     transporting baggage carried by passengers, and which makes 
     meaningful connections with scheduled intercity bus service 
     to more distant points, if such service is available and may 
     include package express service, if incidental to passenger 
     transportation, but does not include air, commuter, water or 
     rail service.
       [``(4) `intermodal passenger facility' means passenger 
     terminal that does, or can be modified to, accommodate 
     several modes of transportation and related facilities, 
     including some or all of the following: intercity rail, 
     intercity bus, commuter rail, intra-city rail transit and bus 
     transportation, airport limousine service and airline ticket 
     offices, rent-a-car facilities, taxis, private parking, and 
     other transportation services.
       [``(5) `local governmental authority' includes--
       [``(A) a political subdivision of a State;
       [``(B) an authority of at least one State or political 
     subdivision of a State;
       [``(C) an Indian tribe; and
       [``(D) a public corporation, board, or commission 
     established under the laws of the State.
       [``(6) `owner or operator of a public transportation 
     facility' means an owner or operator of intercity-rail, 
     intercity-bus, commuter-rail, commuter-bus, rail-transit, 
     bus-transit, or ferry services.
       [``(7) `recipient' means a State or local governmental 
     authority or a nonprofit organization that receives a grant 
     to carry out this section directly from the Federal 
     government.
       [``(8) `Secretary' means the Secretary of Transportation.
       [``(9) `state' means a State of the United States, the 
     District of Columbia, Puerto Rico, the Northern Mariana 
     Islands, Guam, American Samoa, and the Virgin Islands.
       [``(10) `urban area' means an area that includes a 
     municipality or other built-up place that the Secretary, 
     after considering local patterns and trends of urban growth, 
     decides

[[Page 805]]

     is appropriate for a local public transportation system to 
     serve individuals in the locality.

     [``Sec. 5573. Assurance of access to intermodal passenger 
       facilities

       [``Intercity buses and other modes of transportation shall, 
     to the maximum extent practicable, have access to publicly 
     funded intermodal passenger facilities including, but not 
     limited to, those passenger facilities seeking funding under 
     section 5574.

     [``Sec. 5574. Intercity bus intermodal passenger facility 
       grants

       [``(a) General Authority.--The Secretary of Transportation 
     may make grants under this section to recipients in financing 
     a capital project, as defined in section 5572 of this 
     chapter, only if the Secretary finds that the proposed 
     project is justified and has adequate financial commitment.
       [``(b) Competitive Grant Selection.--The Secretary shall 
     conduct a national solicitation for applications for grants 
     under this section. Grantees shall be selected on a 
     competitive basis.
       [``(c) Share of Net Project Costs.--
       [``(1) A grant shall not exceed 50 percent of the net 
     project cost, as determined by the Secretary.
       [``(2) The portion of the net costs of an eligible project 
     that is not funded under this section shall be from an 
     undistributed cash surplus, a replacement or depreciation 
     cash fund or reserve, or new capital and may include up to 30 
     percent from amounts appropriated to or made available to a 
     department or agency of the Federal government that are 
     eligible to be expended for transportation.
       [``(d) Regulations.--The Secretary may issue regulations 
     necessary to carry out this section.

     [``Sec. 5575. Funding

       [``(a) Mass Transit Account.--
       [``(1) Funding.--To carry out this Subchapter, there is 
     authorized to be appropriated for each of fiscal years 2005 
     through 2009 from the Mass Transit Account of the Highway 
     Trust Fund the amounts made available under section 
     5338(a)(2)(O) of this title.
       [``(2) Contractual obligations.--A grant approved by the 
     Secretary of Transportation that is financed with amounts 
     made available under subsection (a) of this section is a 
     contractual obligation of the United States Government to pay 
     the Government's share of the cost of the project.
       [``(b) Highway Account.--
       [``(1) There is authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this subchapter $10,000,000 for each of fiscal 
     years 2005 through 2009.
       [``(2) The funding made available under paragraph (1) of 
     this subsection shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23 and shall be subject to any obligation limitation 
     imposed on funds for Federal-aid highways and highway safety 
     construction programs.
       [``(c) Period of Availability.--Amounts made available by 
     subsection (a) of this section shall remain available until 
     expended.''.
       [(b) Conforming Amendment.--The table of contents for 
     chapter 55 of title 49, United States Code, is amended by 
     inserting the following at the end:


           [``Subchapter III--Intermodal Passenger Facilities

[Sec.
[``5571. Policy and Purposes.
[``5572. Definitions.
[``5573. Assurance of access to intermodal facilities.
[``5574. Intercity bus intermodal facility grants.
[``5575. Funding.''.

                       [TITLE VII--MISCELLANEOUS

                         [Subtitle A--Railroads

     [SEC. 7101. RAIL CORRIDOR PLANNING.

       [Section 26101(b)(1) of title 49, United States Code, is 
     amended in the first sentence thereof by adding ``(1)'' after 
     the word ``determines'' and by adding ``or (2) that it is 
     necessary to help promote an effective and efficient system 
     of conventional speed intercity rail passenger operations'' 
     after the word ``improvements''.

     [SEC. 7102. HIGH SPEED RAIL AUTHORIZATIONS.

       [Section 26104 of Title 49, United States Code, is revised 
     to read as follows:

     [``Sec. 26104. Authorization of appropriations

       [``(a) There are authorized to be appropriated to the 
     Secretary $25,000,000 each year for fiscal years 2004 through 
     2009 for carrying out section 26101 (including payment of 
     administrative expenses related thereto).
       [``(b) There are authorized to be appropriated to the 
     Secretary $25,000,000 each year for fiscal years 2004 through 
     2009 for carrying out section 26102 (including payment of 
     administrative expenses related thereto).''
       [``(c) Funds made available under this section shall remain 
     available until expended.''.

      [Subtitle B--Miscellaneous Technical Corrections to Title 49

     [SEC. 7201. CORRECTION OF OBSOLETE REFERENCES TO INTERSTATE 
                   COMMERCE COMMISSION.

       [(a) Except as otherwise provided, a reference in this 
     section to an amendment to, or a repeal of, a section or 
     other provision is deemed to be a reference to a section or 
     other provision of title 49, United States Code.
       [(b)(1) Section 307 (Safety information and intervention in 
     Interstate Commerce Commission proceedings) is repealed.
       [(2) The analysis of chapter 3 is amended by striking the 
     item designated ``307''.
       [(c) Subsections (d)(1)(C) and (e) of section 333 
     (Responsibility for rail transportation unification and 
     coordination projects) are amended by striking ``Interstate 
     Commerce Commission'' and ``Commission'' each place the words 
     appear and substituting ``Surface Transportation Board'' and 
     ``Board'', respectively.
       [(d) Section 10903(b)(2) is amended by striking ``24706(c) 
     of this title'' and substituting ``24706(c) of this title 
     before May 31, 1998''.
       [(e) Section 13541(a) is amended by striking ``finds that'' 
     and all that follows, and substituting--``finds that the 
     exemption is in the public interest and that the application 
     of that provision--
       [``(1) is not necessary to carry out the transportation 
     policy of section 13101; and
       [``(2) is not needed to protect shippers from the abuse of 
     market power or that the transaction or service is of limited 
     scope.''.
       [(f)(1) Section 14704 (Rights and remedies of persons 
     injured by carriers or brokers) is amended as follows:
       [(A) In subsection (a) --
       [(i) strike ``In general.--'' and all that follows through 
     ``injured'' and substitute ``Enforcement of order.--A person 
     injured''; and
       [(ii) redesignate paragraph (2) as subsection (b)(2); and
       [(B) In subsection (b), by striking ``Liability and 
     damages'' and all that follows through ``A carrier'' and 
     substitute ``Liability and damages.--(1) A carrier''.
       [(2) Section 14705(c) is amended by striking ``14704(b)'' 
     and substituting ``14704(b)(2)''.
       [(g)(1) Subsection (c)(3) of section 24307 (Special 
     transportation) is amended by striking ``Interstate Commerce 
     Commission'' and substituting ``Surface Transportation 
     Board''.
       [(2) Section 24308 (Use of facilities and providing 
     services to Amtrak) is amended by striking ``Interstate 
     Commerce Commission'' and ``Commission'' each place the words 
     appear and substituting ``Surface Transportation Board'' and 
     ``Board'', respectively.
       [(3) Section 24311 (Acquiring interests in property by 
     eminent domain) is amended by striking ``Interstate Commerce 
     Commission'' and ``Commission'' each place the words appear 
     and substituting ``Surface Transportation Board'' and 
     ``Board'', respectively.
       [(4) Section 24902 (Goals and requirements) is amended by 
     striking ``Interstate Commerce Commission'' and 
     ``Commission'' each place the words appear and substituting 
     ``Surface Transportation Board'' and ``Board'', respectively.
       [(5) Section 24904 (General authority) is amended by 
     striking ``Interstate Commerce Commission'' and 
     ``Commission'' each place the words appear and substituting 
     ``Surface Transportation Board'' and ``Board'', respectively.

             [Subtitle C--Hazardous Material Transportation

     [SEC. 7301. DEFINITIONS.

       [Section 5102 of title 49, United States Code, is amended 
     by revising paragraph (1) to read as follows:
       [``(1) `commerce' means trade or transportation in the 
     jurisdiction of the United States
       [``(A) between a place in a State and a place outside of 
     the State;
       [``(B) that affects trade or transportation between a place 
     in a State and a place outside of the State; or
       [``(C) on a United States-registered aircraft.''

     [SEC. 7302. REPRESENTATIONS AND TAMPERING WITH HAZARDOUS 
                   MATERIAL PACKAGING.

       [Section 5103(b)(1) of title 49, United States Code, is 
     amended by revising subparagraph (A) to read as follows:
       [``(A) apply to a person that--
       [``(i) transports a hazardous material in commerce;
       [``(ii) causes a hazardous material to be transported in 
     commerce;
       [``(iii) manufactures, designs, inspects, tests, 
     reconditions, marks, or repairs a packaging or packaging 
     component represented as qualified for use in transporting 
     hazardous material in commerce;
       [``(iv) prepares, accepts, or rejects hazardous material 
     for transportation in commerce;
       [``(v) is responsible for the safety of transporting 
     hazardous material in commerce;
       [``(vi) certifies compliance with any requirement issued 
     under this chapter;
       [``(vii) misrepresents whether it is engaged in any of the 
     above activities; or
       [``(viii) performs any other act or function relating to 
     the transportation in commerce of a hazardous material; 
     and''.

     [SEC. 7303. HAZARDOUS MATERIAL TRANSPORTATION SAFETY AND 
                   SECURITY.

       [(a) Enhanced Authority To Discover Hidden Shipments of 
     Hazardous Material.--Section 5121 of title 49, United States 
     Code, is amended by revising subsection (c) to read as 
     follows:

[[Page 806]]

       [``(c) Inspections and Investigations.--(1) A designated 
     officer or employee of the Secretary may--
       [``(A) inspect and investigate, at a reasonable time and in 
     a reasonable way, records and property related to a function 
     described in section 5103(b)(1) of this chapter;
       [``(B) except for the packaging immediately adjacent to its 
     hazardous material contents, gain access to, open, and 
     examine a package offered for, or in, transportation when the 
     officer or employee has an objectively reasonable and 
     articulable belief that the package may contain a hazardous 
     material;
       [``(C) remove from transportation a package or related 
     packages in a shipment offered for or in transportation, and 
     for which such officer or employee has an objectively 
     reasonable and articulable belief that the package or 
     packages may pose an imminent hazard, and for which the 
     officer or employee contemporaneously documents that belief 
     in accordance with procedures established by the Secretary;
       [``(D) gather information from the offeror, carrier, 
     packaging manufacturer or retester, or other person 
     responsible for the package or packages, to ascertain the 
     nature and hazards of the contents of the package or 
     packages;
       [``(E) as necessary, under terms and conditions specified 
     by the Secretary, order the offeror, carrier, packaging 
     manufacturer or retester, or other person responsible for the 
     package or packages to have the package or packages 
     transported to, opened and the contents examined and analyzed 
     at a facility appropriate for the conduct of this activity; 
     and
       [``(F) when safety might otherwise be compromised, 
     authorize properly qualified personnel to assist in the 
     activities conducted under this subsection.
       [``(2) An officer or employee acting under this subsection 
     shall display proper credentials when requested.
       [``(3) For instances when, as a result of the inspection or 
     investigation, an imminent hazard is not found to exist, the 
     Secretary shall develop procedures to assist in the safe 
     resumption of transportation of the package or transport 
     unit.''.
       [(b) Emergency Authority for Hazardous Material 
     Transportation.--Section 5121 is amended by striking 
     subsection (e), redesignating subsection (d) as subsection 
     (e), and adding a new subsection (d) to read as follows:
       [``(d) Emergency Orders.--
       [``(1) If, upon inspection, investigation, testing, or 
     research, the Secretary determines that either a violation of 
     a provision of this chapter or a regulation issued under this 
     chapter, or an unsafe condition or practice, constitutes or 
     is causing an imminent hazard, the Secretary may issue or 
     impose emergency restrictions, prohibitions, recalls, or out-
     of-service orders, without notice or the opportunity for a 
     hearing, but only to the extent necessary to abate the 
     imminent hazard.
       [``(2) The Secretary's action under paragraph (1) of this 
     subsection shall be in a written order describing the 
     violation, condition or practice that is causing the imminent 
     hazard, and stating the restrictions, prohibitions, recalls, 
     or out-of-service orders issued or imposed. The order also 
     shall describe the standards and procedures for obtaining 
     relief from the emergency order.
       [``(3) After taking action under paragraph (1) of this 
     subsection, the Secretary shall provide an opportunity for 
     review of that action under section 554 of title 5, if a 
     petition for review is filed within 20 calendar days after 
     issuance of the order.
       [``(4) If a petition for review is filed and the review is 
     not completed by the end of the 30-day period beginning on 
     the date the petition was filed, the action will cease to be 
     effective at the end of that period unless the Secretary 
     determines in writing that the emergency situation still 
     exists.
       [``(5) For purposes of this subsection, ``out-of-service 
     order'' means a mandate that an aircraft, vessel, motor 
     vehicle, train, railcar, locomotive, other vehicle, transport 
     unit, transport vehicle, freight container, portable tank, or 
     other package not be moved until specified conditions have 
     been met.''
       [(c) Security-Sensitive Information.--Section 5121 is 
     revised by adding a new subsection (f) to read as follows:
       [``(f) Security-Sensitive Information.--
       [``(1) If the Secretary determines that particular 
     information may reveal a vulnerability of a hazardous 
     material to attack during transportation in commerce, or may 
     facilitate the diversion of hazardous material during 
     transportation in commerce for use in an attack on people or 
     property, the information may be disclosed only--
       [``(A) to an owner, custodian, offeror or carrier of the 
     hazardous material;
       [``(B) to an officer, employee or agent of a Federal, 
     State, or local government, including a volunteer fire 
     department, concerned with carrying out transportation safety 
     laws, protecting hazardous material during the course of 
     transportation in commerce, protecting public safety, or 
     national security issues, or enforcing federal laws designed 
     to protect public health or the environment; or
       [``(C) in an administrative or judicial proceeding brought 
     under this chapter, under other federal law designed to 
     protect public health or the environment, or one that 
     addresses terrorist actions or threats of such actions.
       [``(2) The Secretary may make a determination under 
     subsection (1) of this section with respect to a category of 
     information by regulation.
       [``(3) A release of information pursuant to a determination 
     under subsection (1) of this section is not a release to the 
     public within the meaning of 5 U.S.C. 552.''.
       [(d) Enhancements to Security Risk Assessment and Emergency 
     Preparedness.--Section 5121 is amended by inserting the 
     following after subsection (f):
       [``(g) Authority for Grants, Cooperative Agreements, and 
     Other Transactions.--The Secretary may enter into grants, 
     cooperative agreements, and other transactions with a person, 
     agency or instrumentality of the United States, a unit of 
     State or local government, an Indian tribe, a foreign 
     government (in coordination with the Department of State), an 
     educational institution, or other entity to expand the risk 
     assessment and emergency response capability with respect to 
     hazardous materials security issues and to carry out this 
     chapter.''.
       [(e) Cargo Inspection Program.--The Secretary of 
     Transportation may randomly inspect cargo at U.S. Customs 
     ports of entry in order to determine the extent to which 
     undeclared hazardous material is being offered for 
     transportation in commerce. Under this program, an officer or 
     employee of the Secretary may open and inspect any cargo 
     shipment at a U.S. Customs port of entry if that shipment has 
     been randomly selected for inspection by a Department 
     supervisor who is not on site. The Department of 
     Transportation shall ensure that random inspections under 
     this program are coordinated in advance with the Department 
     of Homeland Security and provide for the effective handling 
     and disposition of any violations found. The Secretary shall 
     initiate such a program within one year after the date of 
     enactment of this Act.''

     [SEC. 7304. ADMINISTRATIVE AUTHORITY FOR TRANSPORTATION 
                   SERVICE AND INFRASTRUCTURE ASSURANCE RESEARCH.

       [Section 112 of title 49, United States Code, is amended by 
     adding the following new subsection to the end:
       [``(f) Administrative Authority.--
       [``(1) Grants, cooperative agreements, and other 
     transactions.--The Administrator may enter into grants, 
     cooperative agreements, and other transactions with Federal 
     or other public agencies (including State and local 
     governments) and private organizations and other persons to 
     conduct research into transportation service and 
     infrastructure assurance and to carry out research activities 
     of the Administration.
       [``(2) Prohibition on certain disclosures.--If the 
     Administrator determines that particular information 
     developed in research sponsored by the Administration may 
     reveal a systemic vulnerability of transportation service or 
     infrastructure, the information may be disclosed only to a 
     person responsible for the security of the transportation 
     service or infrastructure or with protecting public safety or 
     to an officer, employee, or agent of a Federal, State or 
     local government unit whose need for the information in the 
     performance of duties is concurred in by the Administrator. A 
     release of information subject to a determination under this 
     section is not a release to the public within the meaning of 
     5 U.S.C. 552.''.

     [SEC. 7305. POSTAL SERVICE CIVIL PENALTY AUTHORITY.

       [(a) Section 3001 of title 39, United States Code, is 
     amended by adding a new subsection (o) as follows:
       [``(o)(1) Except as permitted by law and Postal Service 
     regulation, hazardous material is nonmailable.
       [``(2) For purposes of this section, the term `hazardous 
     material' means a substance or material the Secretary of 
     Transportation designates under section 5103(a) of title 
     49.''.
       [(b) Chapter 30 of title 39, United States Code, is amended 
     by adding a new section 3018 at the end as follows:

     [``Sec. 3018. Hazardous material; civil penalty

       [``(a) Regulations.--The Postal Service shall prescribe 
     regulations for the safe transportation of hazardous material 
     in the mail.
       [``(b) Hazardous Material in the Mail.--No person may--
       [``(1) mail or cause to be mailed a hazardous material that 
     has been declared by statute or Postal Service regulation to 
     be nonmailable;
       [``(2) mail or cause to be mailed a hazardous material in 
     violation of any statute or Postal Service regulation 
     restricting the time, place, or manner in which a hazardous 
     material may be mailed; or
       [``(3) manufacture, distribute, or sell any container, 
     packaging kit, or similar device that--
       [``(A) is represented, marked, certified, or sold by such 
     person for use in the mailing of a hazardous material; and
       [``(B) fails to conform with any statute or Postal Service 
     regulation setting forth standards for a container, packaging 
     kit, or similar device used for the mailing of a hazardous 
     material.
       [``(c) Civil Penalty.--

[[Page 807]]

       [``(1) A person that knowingly violates this section or a 
     regulation issued under this section is liable to the Postal 
     Service for a civil penalty of at least $250 but not more 
     than $100,000 for each violation, and for any clean-up costs 
     and damages. A person acts knowingly when--
       [``(A) the person has actual knowledge of the facts giving 
     rise to the violation; or
       [``(B) a reasonable person acting in the circumstances and 
     exercising reasonable care would have that knowledge.
       [``(2) Knowledge by the person of the existence of a 
     statutory provision, or a regulation or requirement 
     prescribed by the Postal Service is not an element of an 
     offense under this section.
       [``(3) A separate violation occurs for each day a hazardous 
     material, mailed or caused to be mailed in noncompliance with 
     this section or a regulation issued under this section, is in 
     the mail.
       [``(4) A separate violation occurs for each item containing 
     a hazardous material that is mailed or caused to be mailed in 
     noncompliance with this section or a regulation issued under 
     this section.
       [``(d) Hearing Requirement.--The Postal Service may find 
     that a person has violated this section or a regulation 
     issued under this section only after notice and an 
     opportunity for a hearing. Under this section, the Postal 
     Service shall impose a penalty and recover clean-up costs and 
     damages by giving the person written notice of the amount of 
     the penalty, clean-up costs, and damages.
       [``(e) Penalty Considerations.--In determining the amount 
     of a civil penalty under this section, the Postal Service 
     shall consider--
       [``(1) the nature, circumstances, extent, and gravity of 
     the violation;
       [``(2) with respect to the person who committed the 
     violation, the degree of culpability, any history of prior 
     violations, the ability to pay, and any effect on the ability 
     to continue in business;
       [``(3) the impact on postal operations; and
       [``(4) other matters that justice requires.
       [``(f) Civil Actions to Collect.--
       [``(1) In accordance with section 409(d) of this title, a 
     civil action may be commenced in an appropriate district 
     court of the United States to collect a civil penalty, clean-
     up costs, or damages assessed under this section. In such 
     action, the validity, amount, and appropriateness of the 
     civil penalty, clean-up costs, or damages shall not be 
     subject to review.
       [``(2) The Postal Service may compromise the amount of a 
     civil penalty, clean-up costs, or damages assessed under this 
     section before civil action is taken to collect the penalty, 
     costs, or damages.
       [``(g) Civil Judicial Penalties.--At the request of the 
     Postal Service, the Attorney General may bring a civil action 
     in an appropriate district court of the United States to 
     enforce this chapter or a regulation prescribed or order 
     issued under this chapter. The court may award appropriate 
     relief, including a temporary or permanent injunction, 
     punitive damages, and assessment of civil penalties 
     considering the same penalty amounts and factors as 
     prescribed for the Postal Service in an administrative case 
     under this section.
       [``(h) Depositing Amounts Collected.--Amounts collected 
     under this section shall be paid into the Postal Service Fund 
     established by section 2003 of this title.''.
       [(c) Conforming Amendment.--The chapter analysis for 
     chapter 30 of title 39, United States Code, is amended by 
     adding the following:

[``3018. Hazardous material; civil penalty.''.

     [SEC. 7306. REGISTRATION.

       [(a) In General.--Section 5108 of title 49, United States 
     Code, is amended--
       [(1) by striking ``class A or B explosive'' in subsection 
     (a)(1)(B) and inserting ``Division 1.1, 1.2, or 1.3 explosive 
     material''; and
       [(2) by revising subsection (a)(2)(B) to read as follows:
       [``(B) a person manufacturing, designing, inspecting, 
     testing, reconditioning, marking, or repairing a packaging or 
     packaging component represented as qualified for use in 
     transporting a hazardous material in commerce.''.
       [(b) Clarification of Title 18 Exemption.--Section 
     845(a)(1) of title 18, United States Code, is amended to read 
     as follows:
       [``(1) aspects of the transportation of explosive materials 
     via railroad, water, highway, or air that pertain to safety, 
     including security, and are regulated by the Department of 
     Transportation or the Department of Homeland Security;''.

     [SEC. 7307. SHIPPING PAPER RETENTION.

       [Section 5110 of title 49, United States Code, is amended--
       [(1) in subsection (a), by striking ``under subsection (b) 
     of this section'' and inserting ``by regulation'';
       [(2) by striking subsection (b) and redesignating 
     subsections (c)-(e) as subsections (b)-(d); and
       [(3) by revising the first sentence in subsection (d), as 
     redesignated, to read as follows: ``The person that provided 
     the shipping paper and the carrier required to keep it under 
     this section shall retain the paper, or an electronic image 
     of it, for a period of 3 years after the shipping paper was 
     provided to the carrier, to be accessible through their 
     respective principal places of business.''.

     [SEC. 7308. PLANNING AND TRAINING GRANTS.

       [(a) Section 5116 of title 49, United States Code, is 
     amended--
       [(1) in the second sentence of subsection (e), by striking 
     ``of the State or tribe under subsections (a)(2)(A) and 
     (b)(2)(A)'' and inserting ``received by the State or tribe 
     under subsections (a)(1) and (b)(1)'';
       [(2) revising subsection (f) to read as follows:
       [``(f) Monitoring and Technical Assistance.--The Secretary 
     of Transportation shall monitor public-sector emergency 
     response planning and training for an accident or incident 
     involving hazardous material. Considering the results of the 
     monitoring, the Secretary shall provide technical assistance 
     to a State, political subdivision of a State, or Indian tribe 
     for carrying out emergency response training and planning for 
     an accident or incident involving hazardous material and 
     shall coordinate the assistance using the existing 
     coordinating mechanisms of the National Response Team and, 
     for radioactive material, the Federal Radiological 
     Preparedness Coordinating Committee.'';
       [(3) in subsection (g), by striking ``Government grant'' 
     and inserting ``Federal financial assistance'';
       [(4) by revising subsection (i) to read as follows:
       [``(i) Emergency Preparedness Fund.--The Secretary of the 
     Treasury shall establish an Emergency Preparedness Fund 
     account in the Treasury into which the Secretary of the 
     Treasury shall deposit amounts the Secretary of 
     Transportation transfers to the Secretary of the Treasury 
     under section 5108(g)(2)(C) of this title. Without further 
     appropriation, amounts in the account are available--
       [``(1) to make grants under this section;
       [``(2) to monitor and provide technical assistance under 
     subsection (f) of this section;
       [``(3) to publish and distribute the Emergency Response 
     Guidebook;
       [``(4) to pay administrative costs of carrying out this 
     section and sections 5108(g)(2) and 5115 of this title, 
     except that not more than 10 percent of the amounts made 
     available from the account in a fiscal year to carry out 
     these sections may be used to pay those costs.''; and
       [``(5) by striking subsection (k).''.
       [(b) Chapter 51 is amended by--
       [(1) revising the section heading for section 5116 to read 
     ``Planning and training grants; emergency preparedness 
     fund''; and
       [(2) striking the item for section 5116 in the analysis of 
     the chapter and inserting ``5116. Planning and training 
     grants; emergency preparedness fund.''.

     [SEC. 7309. ENFORCEMENT.

       [Section 5122 of title 49, United States Code, is amended--
       [(1) in subsection (a), by revising the last sentence to 
     read as follows: ``The court may award appropriate relief, 
     including a temporary or permanent injunction, punitive 
     damages, and assessment of civil penalties considering the 
     same penalty amounts and factors as prescribed for the 
     Secretary in an administrative case under section 5123 of 
     this chapter.''; and
       [(2) in subparagraph (b)(1)(B), by striking ``or ameliorate 
     the'' and inserting ``or mitigate the''.

     [SEC. 7310. PENALTIES.

       [(a) Section 5123 of title 49, United States Code, is 
     amended--
       [(1) by revising subsection (a) to read as follows:
       [``(a) Penalty.--
       [``(1) A person that knowingly violates this chapter, or a 
     regulation, order, special permit, or approval issued under 
     this chapter, is liable to the United States Government for a 
     civil penalty of at least $250 but not more than $100,000 for 
     each violation.
       [``(2) Knowledge by the person of the existence of a 
     statutory provision, or a regulation or requirement 
     prescribed by the Secretary is not an element of an offense 
     under this section.
       [``(3) A separate violation occurs for each day the 
     violation, committed by a person that transports or causes to 
     be transported hazardous material, continues''; and
       [(2) by redesignating subsections (b)-(g) as subsections 
     (c)-(h) and inserting a new subsection (b) to read as 
     follows:
       [``(b) Knowing Violations.--In this section, a person acts 
     knowingly when--
       [``(1) the person has actual knowledge of the facts giving 
     rise to the violation; or-
       [``(2) a reasonable person acting in the circumstances and 
     exercising reasonable care would have that knowledge.'';
       [(3) in subsection (c), as redesignated, by striking the 
     first sentence and inserting the following: ``The Secretary 
     of Transportation may find that a person has violated this 
     chapter, or a regulation, order, special permit or approval 
     issued under this chapter, only after notice and an 
     opportunity for a hearing.'';
       [(4) by revising subsection (e), as redesignated, to read 
     as follows:
       [``(e) Civil Actions To Collect.--The Attorney General may 
     bring a civil action in an appropriate district court of the 
     United States to collect a civil penalty under this section 
     and any accrued interest on that penalty calculated in the 
     manner described under section 2705 of title 33. In such 
     action, the validity, amount, and appropriateness of

[[Page 808]]

     the civil penalty shall not be subject to review.''.
       [(b) Section 5124 is revised to read as follows:

     [``Sec. 5124. Criminal penalty

       [``(a) General.--A person knowingly violating section 
     5104(b) of this title or willfully or recklessly violating 
     this chapter or a regulation, order, special permit, or 
     approval issued under this chapter, shall be fined under 
     title 18, imprisoned for not more than 5 years, or both.
       [``(b) Aggravated Violations.--A person knowingly violating 
     section 5104(b) of this chapter, or willfully or recklessly 
     violating this chapter or a regulation, order, special 
     permit, or approval issued under this chapter, and thereby 
     causing the release of a hazardous material, shall be fined 
     under title 18, imprisoned for not more than 20 years, or 
     both.
       [``(c) Knowing Violations.--In this section, a person acts 
     knowingly when--
       [``(1) the person has actual knowledge of the facts giving 
     rise to the violation; or
       [``(2) a reasonable person acting in the circumstances and 
     exercising reasonable care would have that knowledge.
       [``(d) Willful Violations.--In this section, a person acts 
     willfully when--
       [``(1) the person has knowledge of the facts giving rise to 
     the violation; and
       [``(2) the person has knowledge that the conduct was 
     unlawful.
       [``(e) Reckless Violations.--In this section, a person acts 
     recklessly when the person displays a deliberate indifference 
     or conscious disregard for the consequences of that person's 
     conduct.
       [``(f) Knowledge of Requirements.--Knowledge by a person of 
     the existence of a statutory provision, or a regulation or 
     requirement prescribed by the Secretary, is not an element of 
     an offense under this section.
       [``(g) Separate Violations.--A separate violation occurs 
     for each day the violation, committed by a person who 
     transports hazardous material or who causes hazardous 
     material to be transported, continues.''.
       [(c) Section 46312 is amended--
       [(1) in subparagraph (a), by striking ``under this part'' 
     and inserting ``under this part or under chapter 51 of this 
     title''; and
       [(2) in subparagraph (b), by striking ``by the Secretary'' 
     and inserting ``by the Secretary under this part or under 
     chapter 51 of this title''.
       [(d) Section 3663, title 18 United States Code, is amended 
     in subparagraph (a)(1)(A) by striking ``or section 46312, 
     46502, or 46504 of title 49'' and inserting ``or section 
     5124, 46312, 46502, or 46504 of title 49.''.

     [SEC. 7311 EMERGENCY WAIVER OF PREEMPTION.

       [``Section 5125 of title 49, United States Code, is amended 
     by adding new subsections (h), (i), and (j) to read as 
     follows:
       [``(h) Emergency Waiver of Preemption.--
       [``(1) The Secretary, upon a finding of good cause, may 
     waive preemption on an expedited basis without notice and 
     public procedure. Good cause exists when there is a possible 
     threat that hazardous material being transported in commerce 
     may be used in an attack on people or property, and notice 
     and public procedure are impracticable or contrary to the 
     public interest.
       [``(2) An emergency waiver of preemption shall remain in 
     effect for no more than 6 months unless, prior to its 
     expiration, the Secretary determines that a possible threat 
     that hazardous material being transported in commerce may be 
     used in an attack on people or property continues to exist.
       [``(3) An action of the Secretary under paragraphs (1) and 
     (2) of this subsection shall be in writing and shall describe 
     the standards and procedures for seeking reconsideration of 
     the Secretary's action.
       [``(4) After taking action under paragraphs (1) or (2) of 
     this subsection, the Secretary shall provide an opportunity 
     for review of that action if a petition for reconsideration 
     is filed within 20 calendar days after the Secretary issues 
     or extends an emergency waiver.
       [``(5) If a petition for reconsideration is filed and the 
     review is not completed by the end of the 30-day period 
     beginning on the date the petition was filed, the emergency 
     waiver will cease to be effective at the end of that period 
     unless the Secretary determines, in writing, that a possible 
     threat that hazardous material being transported in commerce 
     may be used in an attack on people or property continues to 
     exist.
       [``(i) Independent Application of Each Standard.--Each 
     preemption standard in subsections (b), (c)(1), (d), and (e) 
     of this section and in section 5119(b) of this chapter is 
     independent in its application to a requirement of any State, 
     political subdivision of a State, or Indian tribe.
       [``(j) Nonfederal Enforcement Standards.--This section does 
     not apply to procedure, penalty, or required mental state or 
     other standard used by a State, political subdivision of a 
     State, or Indian tribe to enforce a requirement applicable to 
     transportation of a hazardous material.''.

     [SEC. 7312. JUDICIAL REVIEW.

       [Chapter 51 of title 49, United States Code, is amended by 
     redesignating section 5127 as section 5128, and by inserting 
     after section 5126 the following new section:

     ``Sec. 5127. Judicial review

       [``(a) Filing and Venue.--Except as provided in section 
     20114(c) of this title, a person suffering legal wrong or 
     adversely affected or aggrieved by a final action of the 
     Secretary of Transportation under this chapter may petition 
     for review of the final action in the United States Court of 
     Appeals for the District of Columbia or in the court of 
     appeals for the United States for the circuit in which the 
     person resides or has its principal place of business. The 
     petition must be filed not more than 60 days after the 
     Secretary's action becomes final.
       [``(b) Judicial Procedures.--When a petition is filed under 
     subsection (a) of this section, the clerk of the court 
     immediately shall send a copy of the petition to the 
     Secretary. The Secretary shall file with the court a record 
     of any proceeding in which the final action was issued, as 
     provided in section 2112 of title 28.
       [``(c) Authority of Court.--The court has exclusive 
     jurisdiction, as provided in the Administrative Procedure 
     Act, 5 U.S.C. 551 et seq., to affirm or set aside any part of 
     the Secretary's final action and may order the Secretary to 
     conduct further proceedings. Findings of fact by the 
     Secretary, if supported by substantial evidence, are 
     conclusive.
       [``(d) Requirement for Prior Objection.--In reviewing a 
     final action under this section, the court may consider an 
     objection to a final action of the Secretary only if the 
     objection was made in the course of a proceeding or review 
     conducted by the Secretary or if there was a reasonable 
     ground for not making the objection in the proceeding.''.
       [(b) Conforming Amendment.--The chapter analysis for 
     chapter 51 is amended by striking the item related to section 
     5127 and inserting the following:

[``5127. Judicial review.
[``5128. Authorization of appropriations.''.

               [Subtitle D--Sanitary Food Transportation

     [SEC. 7401. SHORT TITLE.

       [This Subtitle may be cited as the ``Sanitary Food 
     Transportation Act of 2003''.

     [SEC. 7402. RESPONSIBILITIES OF THE SECRETARY OF HEALTH AND 
                   HUMAN SERVICES.

       [(a) Unsanitary Transport Deemed Adulteration.--Section 402 
     of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342) 
     is amended by adding at the end the following new subsection:
       [``(i) If it is transported under conditions that are not 
     in compliance with the sanitary transportation practices 
     prescribed by the Secretary under section 416.''.
       [(b) Sanitary Transportation Requirements.--Chapter IV of 
     the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341 et 
     seq.) is amended by adding at the end the following new 
     section:

     [``Sec. 416. Sanitary transportation of food

       [``(a) Sanitary Transportation Practices.--The Secretary 
     shall establish by regulation sanitary transportation 
     practices which shippers, carriers, receivers, and other 
     persons engaged in the transportation of food shall be 
     required to follow to ensure that the food is not transported 
     under conditions that may render it adulterated, including 
     such practices as the Secretary may find appropriate relating 
     to--
       [``(1) sanitation;
       [``(2) packaging, isolation, and other protective measures;
       [``(3) limitations on the use of vehicles;
       [``(4) information to be disclosed--
       [``(A) to a carrier by a person arranging for the transport 
     of food, and
       [``(B) to a manufacturer or other persons arranging for the 
     transport of food by a carrier or other person furnishing a 
     tank or bulk vehicle for the transport of food; and
       [``(5) recordkeeping.
       [``(b) List of Unacceptable Nonfood Products.--The 
     Secretary, by publication in the Federal Register, may 
     establish and periodically amend--
       [``(1) a list of nonfood products that the Secretary 
     determines may, if shipped in a tank or bulk vehicle, render 
     adulterated food transported subsequently in such vehicle; 
     and
       [``(2) a list of nonfood products that the Secretary 
     determines may, if shipped in a motor or rail vehicle (other 
     than a tank or bulk vehicle), render adulterated food 
     transported simultaneously or subsequently in such vehicle.
       [``(c) Waiver Authority.--
       [``(1) In general.--The Secretary may waive all or part of 
     this section, or any requirement under this section, with 
     respect to any class of persons, of vehicles, of food, or of 
     nonfood products, if the Secretary determines that such 
     waiver--
       [``(A) will not result in the transportation of food under 
     conditions that would be unsafe for human or animal health; 
     and
       [``(B) will not be contrary to the public interest or this 
     Act.
       [``(2) Publication.--The Secretary shall publish in the 
     Federal Register any waiver and the reasons for the waiver.
       [``(d) Preemption.--
       [``(1) In general.--No State or political subdivision of a 
     State may directly or indirectly establish or continue in 
     effect, as to any food in interstate commerce, any authority 
     or requirement concerning that

[[Page 809]]

     transportation of food that is not identical to the 
     requirement of this section.
       [``(2) Effective Date.--The provisions of this subsection 
     apply only with respect to transportation occurring on or 
     after the effective date of regulations prescribed under 
     subsection (a).
       [``(e) Assistance of Other Agencies.--The Secretary of 
     Transportation, the Secretary of Agriculture, the 
     Administrator of the Environmental Protection Agency, and the 
     heads of other Federal agencies, as appropriate, shall 
     provide assistance upon request, to the extent resources are 
     available, to the Secretary of Health and Human Services for 
     the purposes of carrying out this section.
       [``(f) Definitions.--For purposes of the section:
       [``(1) The term `transportation' means any movement of 
     property in commerce by motor vehicle or rail vehicle.
       [``(2) The term `tank or bulk vehicle' includes any vehicle 
     in which food is shipped in bulk and in which the food comes 
     directly into contact with the vehicle, including tank 
     trucks, hopper trucks, rail tank cars, hopper cars, cargo 
     tanks, portable tanks, freight containers, or hopper bins.''.
       [(c) Inspection of Transportation Records.--
       [(1) Requirement.--Chapter VII of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 371 et seq.) is amended by 
     inserting after section 703 the following new section:

     [``Sec. 703A. Food transportation records

       [``Shippers, carriers by motor vehicle or rail vehicle, and 
     other persons subject to section 416 shall, upon request of 
     an officer or employee duly designated by the Secretary, 
     permit such officer or employee, at reasonable times, to have 
     access to and to copy all records that the Secretary requires 
     them to make or retain under section 416(a)(5) of this 
     Act.''.
       [(2) Conforming amendment.--Section 703 of the Act (21 
     U.S.C. 373) is amended by striking ``in the usual course of 
     business as carriers.'' and inserting ``in the usual course 
     of business as carriers, unless otherwise explicitly 
     provided.''.
       [(d) Prohibited Acts.--
       [(1) Records inspection.--Section 301(c) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 331(e)) is amended--
       [(A) by striking ``or 703'' and inserting ``, 703, or 
     703A''; and
       [(B) by inserting ``416,'' before ``504''.
       [(2) Unsafe food transportation.--Section 301 of the Act 
     (21 U.S.C. 331) is further amended by adding at the end the 
     following new subsection:
       [``(gg) The failure, by a shipper, carrier, receiver, or 
     any other person engaged in the transportation of food, to 
     comply with the sanitary transportation practices prescribed 
     by the Secretary under section 416.''.

     [SEC. 7403. DEPARTMENT OF TRANSPORTATION REQUIREMENTS.

       [Chapter 57 of title 49, relating to sanitary food 
     transportation is revised to read as follows:

              [``CHAPTER 57--SANITARY FOOD TRANSPORTATION

[``Sec.
[``5701. Food transportation safety inspections.

     [``Sec. 5701. Food transportation safety inspections

       [``(a) Inspection Procedures.--
       [``(1) The Secretary of Transportation, in consultation 
     with the Secretaries of Health and Human Services and 
     Agriculture, shall establish procedures to be used in 
     performing transportation safety inspections for the purpose 
     of identifying suspected incidents of contamination or 
     adulteration of food that may violate regulations issued 
     under section 416 of title 21, United States Code, and of 
     meat and poultry products subject to detention under section 
     402 of the Federal Meat Inspection Act (21 U.S.C. 672) and 
     section 19 of the Poultry Products Inspection Act (21 U.S.C. 
     467a), and shall train personnel of the Department of 
     Transportation in the appropriate use of such procedures.
       [``(2) The procedures established under paragraph (1) of 
     this subsection shall apply, at a minimum, to the Department 
     of Transportation personnel who perform commercial motor 
     vehicle and railroad safety inspections.
       [``(b) Notification of Secretaries of Health and Human 
     Services and Agriculture.--The Secretary of Transportation 
     shall promptly notify the Secretary of Health and Human 
     Services or the Secretary of Agriculture, as applicable, of 
     any instances of potential food contamination or adulteration 
     of a food identified during transportation safety 
     inspections.
       [``(c) Use of State Employees.--The means by which the 
     Secretary of Transportation carries out subsection (b) of 
     this section may include inspections conducted by State 
     employees using funds authorized to be appropriated under 
     sections 31102 through 31104 of this title.''.

     [SEC. 7404. EFFECTIVE DATE OF THE SUBTITLE.

       [Unless otherwise specified, the provisions of this title 
     are effective October 1, 2003.

             [Subtitle E--Sport Fishing and Boating Safety

     [SEC. 7501. SPORT FISH RESTORATION ACCOUNT AMENDMENTS.

       [(a) In General.--Section 4 of the Act entitled ``An Act to 
     provide that the United States shall aid the States in fish 
     restoration and management projects, and for other purposes'' 
     (August 9, 1950)(16 U.S.C. 777c) is amended--
       [(1) in subsection (b),
       [(A) by striking ``2003'' each place it appears and 
     inserting ``2009''; and
       [(B) by striking ``Secretary of Transportation'' each place 
     it appears and inserting ``Secretary of Homeland Security''; 
     and
       [(2) in subsection (c)(5), by striking ``fiscal year 2003'' 
     and inserting ``fiscal years 2003 through 2009''.
       [(b) Clean Marina Initiatives.--To further enhance the 
     natural environment, Federal agencies administering programs 
     funded under the Aquatic Resources Trust Fund should promote, 
     to the extent practicable, ``Clean Marina Initiatives'' in 
     each of the following programs:
       [(1) Clean Vessel Act ``Pumpout'' Program.
       [(2) Boating Infrastructure Grant Program.
       [(3) National Outreach and Communications Program.
       [(4) Recreational Boating Access Facilities.

[TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

     [SEC. 8101. DISCRETIONARY SPENDING CATEGORIES.

       [(a) Definition of Highway Category and Mass Transit 
     Category.--
       [(1) Section 250(c)(4)(B) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended by--
       [(A) striking ``Transportation Equity Act for the 21st 
     Century'' and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003''; and
       [(B) adding after item (iv) the following new clauses:
       [``(v) 69-8158-0-7-401 (Motor Carrier Safety Grants).
       [``(vi) 69-8159-0-7-401 (Motor Carrier Safety Operations 
     and Programs).''.
       [(2) Section 250(c)(4)(C) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended to read as 
     follows:
       [``(C) The term `mass transit category' refers to the 
     following budget accounts or portions thereof that are 
     subject to the obligation limitations on contract authority 
     provided in the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003 or for which appropriations 
     are provided pursuant to authorizations contained in that 
     Act:
       [``(i) 69-1120-0-1-401 (Administrative Expenses).
       [``(ii) 69-1134-0-1-401 (Capital Investment Grants).
       [``(iii) 69-8191-0-7-401 (Discretionary Grants).
       [``(iv) 69-1129-0-1-401 (Formula Grants).
       [``(v) 69-8303-0-7-401 (Formula Grants and Research).
       [``(vi) 69-1127-0-1-401 (Interstate Transfer Grants--
     Transit).
       [``(vii) 69-1125-0-1-401 (Job Access and Reverse Commute).
       [``(viii) 69-1122-0-1-401 (Miscellaneous Expired Accounts).
       [``(ix) 69-1139-0-1-401 (Major Capital Investment Grants).
       [``(x) 69-1121-0-1-401 (Research, Training and Human 
     Resources).
       [``(xi) 69-8350-0-7-401 (Trust Fund Share of Expenses).
       [``(xii) 69-1137-0-1-401 (Transit Planning and Research).
       [``(xiii) 69-1136-0-1-401 (University Transportation 
     Research).
       [``(xiv) 69-1128-0-1-401 (Washington Metropolitan Area 
     Transit Authority).''.
       [(b) Continuation of Separate Categories.--Section 251(c) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985 is amended by adding at the end the following new 
     paragraphs:
       [``(8) with respect to fiscal year 2004--
       [``(A) for the highway category: $29,990,000,000 in 
     outlays; and
       [``(B) for the mass transit category: $6,909,000,000 in 
     outlays.
       [``(9) with respect to fiscal year 2005--
       [``(A) for the highway category: $30,589,000,000 in 
     outlays; and
       [``(B) for the mass transit category: $6,462,000,000 in 
     outlays.
       [``(10) with respect to fiscal year 2006--
       [``(A) for the highway category: $31,249,000,000 in 
     outlays; and
       [``(B) for the mass transit category: $6,070,000,000 in 
     outlays.
       [ ``(11) with respect to fiscal year 2007--
       [``(A) for the highway category: $32,402,000,000 in 
     outlays; and
       [``(B) for the mass transit category: $5,843,000,000 in 
     outlays.
       [ ``(12) with respect to fiscal year 2008--
       [``(A) for the highway category: $33,358,000,000 in 
     outlays; and
       [``(B) for the mass transit category: $6,374,000,000 in 
     outlays.
       [``(13) with respect to fiscal year 2009--
       [``(A) for the highway category: $34,109,000,000 in 
     outlays; and
       [``(B) for the mass transit category: $6,470,000,000 in 
     outlays.''.
       [(c) Highway Funding Revenue Alignment.--Section 
     251(b)(1)(B) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) is amended--

[[Page 810]]

       [(1) in clause (i),
       [(A) by inserting ``for fiscal year 2006, 2007, 2008, or 
     2009'' after ``submits the budget'';
       [(B) by inserting ``the obligation limitation and outlay 
     limit for'' after ``adjustments to'';
       [(C) by striking ``provided in clause (ii)(I)(cc).'' and 
     substituting ``follows:''; and
       [(D) by inserting the following at the end:

       [``(I) OMB shall calculate the change in the obligation 
     limitation for the highway category for the budget year by 
     taking the actual level of highway receipts for the year 
     before the current year and subtracting the sum of the 
     estimated level of highway receipts in clause (iii) plus any 
     amount previously calculated under clause (ii) for that year.
       [``(II) OMB shall take the amount calculated under 
     subclause (I) and add that amount to the obligation 
     limitation set forth in section 8102(a) of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 for the highway category for the budget year, and 
     calculate the outlay change resulting from that change in 
     obligations relative to that amount for the budget year and 
     each outyear using current estimates. After making the 
     calculation under the preceding sentence, OMB shall adjust 
     the obligation limitation set forth in that section for the 
     budget year by adding the amount calculated under subclause 
     (I).'';

       [(2) by striking clause (ii) and substituting the 
     following:
       [``(ii) When the President submits the supplementary budget 
     estimates for fiscal year 2006, 2007, 2008, or 2009, under 
     section 1106 of title 31, United States Code, OMB's Mid-
     Session Review shall include adjustments to the obligation 
     limitation and outlay limit for the highway category for the 
     budget year and each outyear as follows:

       [``(I) OMB shall take the current estimate of highway 
     receipts for the current year and subtract the estimated 
     level of highway receipts in clause (iii) for that year.
       [``(II) OMB shall take the amount calculated under 
     subclause (I) and add that amount to the amount of 
     obligations set forth in section 8102 of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 for the highway category for the budget year, and 
     calculate the outlay change resulting from that change in 
     obligations relative to that amount for the budget year and 
     each outyear using current estimates. After making the 
     calculation under the preceding sentence, OMB shall adjust 
     the amount of obligations set forth in that section for the 
     budget year by adding the amount calculated under subclause 
     (I).''; and

       [(3) by inserting the following at the end:
       [``(iii) The estimated level of highway receipts for the 
     purposes of this subparagraph are--

       [``(I) for fiscal year 2004, $30,119,000,000;
       [``(II) for fiscal year 2005, $31,109,000,000;
       [``(III) for fiscal year 2006, $32,191,000,000;
       [``(IV) for fiscal year 2007, $33,146,000,000;
       [``(V) for fiscal year 2008, $34,018,000,000; and
       [``(VI) for fiscal year 2009, $34,844,000,000.

       [``(iv) In this subparagraph, the term ``highway receipts'' 
     means the governmental receipts credited to the highway 
     account of the Highway Trust Fund.''.
       [(d) Transit Funding Revenue Alignment.--Section 
     251(b)(1)(C) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 901(b)(1)(C)) is amended to 
     read as follows:
       [``(C) Adjustment to align mass transit spending with 
     revenues.--
       [``(i) When the President submits the budget for fiscal 
     year 2006, 2007, 2008, or 2009, under section 1105 of title 
     31, United States Code, OMB shall calculate and the budget 
     shall include adjustments to the obligation limitation and 
     outlay limit for the mass transit category for the budget 
     year and each outyear as follows:

       [``(I) OMB shall calculate the change in the obligation 
     limitation for the mass transit category for the budget year 
     by taking the actual level of mass transit receipts for the 
     year before the current year and subtract the sum of the 
     estimated level of mass transit receipts in clause (iii) plus 
     any amount previously calculated under clause (ii) for that 
     year.
       [``(II) OMB shall take the amount calculated under 
     subclause (I) and add that amount to the amount of obligation 
     limitation set forth in section 8102 of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 for the mass transit category for the budget 
     year, and calculate the outlay change resulting from that 
     change in obligations relative to that amount for the budget 
     year and each outyear using current estimates. After making 
     the calculation under the preceding sentence, OMB shall 
     adjust the obligation limitation set forth in that section 
     for the budget year by adding the amount calculated under 
     subclause (I).

       [``(ii) When the President submits the supplementary budget 
     estimates for fiscal year 2006, 2007, 2008, or 2009, under 
     section 1106 of title 31, United States Code, OMB's Mid-
     Session Review shall include adjustments to the obligation 
     limitation and outlay limit for the mass transit category for 
     the budget year and each outyear as follows:

       [``(I) OMB shall take the current estimate of mass transit 
     receipts for the current year and subtract the estimated 
     level of mass transit receipts in clause (iii) for that year.
       [``(II) OMB shall take the amount calculated under 
     subclause (I) and add that amount to the obligation 
     limitation set forth in section 8102 of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003 for the mass transit category for the budget 
     year, and calculate the outlay change resulting from that 
     change in obligations relative to that amount for the budget 
     year and each outyear using current estimates. After making 
     the calculation under the preceding sentence, OMB shall 
     adjust the obligation limitation set forth in that section 
     for the budget year by adding the amount calculated under 
     subclause (I).

       [``(iii) The estimated level of mass transit receipts for 
     the purposes of this subparagraph are--

       [``(I) for fiscal year 2004, $4,793,000,000;
       [``(II) for fiscal year 2005, $4,926,000,000;
       [``(III) for fiscal year 2006, $5,050,000,000;
       [``(IV) for fiscal year 2007, $5,164,000,000;
       [``(V) for fiscal year 2008, $5,270,000,000; and
       [``(VI) for fiscal year 2009, $5,377,000,000.

       [``(iv) In this subparagraph, the term ``mass transit 
     receipts'' means the governmental receipts credited to the 
     Mass Transit Account of the Highway Trust Fund.''.
       [(e) Additional Adjustments.--Section 251(b)(1) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 901(b)(1)) is further amended--
       [(1) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively;
       [(2) in subparagraph (E)(i) as redesignated--
       [(A) by striking ``1999'' and substituting ``2005;
       [(B) by striking ``2000'' and substituting ``2006'';
       [(C) by striking ``2003'' and substituting ``2009; and
       [(D) by striking ``section 8103 of the Transportation 
     Equity Act for the 21st Century'' and substituting ``section 
     8102 of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003'';
       [(3) in subparagraph (E)(ii) as redesignated--
       [(A) by striking ``2000, 2001, 2002, or 2003'' and 
     substituting ``2006, 2007, 2008, and 2009; and
       [(B) by striking ``by subparagraphs (B) and (C)'' and 
     substituting ``made by subparagraphs (B), (C), and (D)'';
       [(4) in subparagraph (F) as redesignated, by striking ``(B) 
     and (C)'' and substituting ``(B), (C), and (D)''; and
       [(5) by inserting the following after subparagraph (C):
       [``(D) In addition to the adjustments required by 
     subparagraphs (B) and (C), when the President submits the 
     budget for fiscal year 2006, 2007, 2008, or 2009, under 
     section 1105 of title 31, United States Code, OMB shall 
     calculate and the budget shall include for the budget year 
     and each outyear an adjustment to the limits on outlays for 
     the highway category and the mass transit category equal to--
       [``(i) the outlays for the applicable category calculated 
     assuming obligation levels consistent with the estimates 
     prepared pursuant to subparagraph (E), as adjusted, using 
     current technical assumptions; minus
       [``(ii) the outlays for the applicable category set forth 
     in the subparagraph (E) estimates, as adjusted.''.
       [(f) Enforcement of Guarantee.--Rule XXI of the Rules of 
     the House of Representatives is amended by striking ``section 
     8103 of the Transportation Equity Act for the 21st Century'' 
     in clause 3 and substituting ``section 8102 of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003''.

     [SEC. 8102. LEVEL OF OBLIGATION LIMITATIONS.

       [(a) Highway Category.--For the purposes of section 251(b) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, the level of obligation limitations for the highway 
     category is--
       [(1) for fiscal year 2004, $30,280,000,000;
       [(2) for fiscal year 2005, $31,270,000,000;
       [(3) for fiscal year 2006, $32,352,000,000;
       [(4) for fiscal year 2007, $33,307,000,000;
       [(5) for fiscal year 2008, $34,179,000,000; and
       [(6) for fiscal year 2009, $35,005,000,000.
       [(b) Mass Transit Category.--
       [(1) For the purposes of section 251(b) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, the level 
     of obligation limitations for the mass transit category is--
       [(A) for fiscal year 2004, $5,936,000,000;
       [(B) for fiscal year 2005, $6,054,720,000;
       [(C) for fiscal year 2006, $6,180,659,000;
       [(D) for fiscal year 2007, $6,319,723,000;
       [(E) for fiscal year 2008, $6,475,820,000; and
       [(F) for fiscal year 2009, $6,633,183,000.
       [(2) For purposes of this subsection, the term ``obligation 
     limitations'' means the sum of budget authority and 
     obligation limitations.

     [SEC. 8103. EFFECTIVENESS OF TITLE.

       [This title, and the amendments made by this title, become 
     effective on the day that section 251 of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 comes into effect 
     after the enactment of this Act.

[[Page 811]]



         [TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

     [SEC. 9001. SHORT TITLE; AMENDMENT OF 1986 CODE.

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

     [SEC. 9002. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUSTFUND.

       [(a) Extension of Taxes.--
       [(1) In general.--The following provisions are each amended 
     by striking ``2005'' each place it appears and inserting 
     ``2011'':
       [(A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax 
     on certain buses).
       [(B) Section 4041(a)(2)(B) (relating to rate of tax on 
     special motor fuels).
       [(C) Section 4041(m)(1)(A) (relating to certain alcohol 
     fuels).
       [(D) Section 4051(c) (relating to termination of tax on 
     heavy trucks and trailers).
       [(E) Section 4071(d) (relating to termination of tax on 
     tires).
       [(F) Section 4081(d)(1) (relating to termination of tax on 
     gasoline, diesel fuel, and kerosene).
       [(G) Section 4481(e) (relating to period tax in effect).
       [(H) Section 4482(c)(4) (relating to taxable period).
       [(I) Section 4482(d) (relating to special rule for taxable 
     period in which termination date occurs).
       [(2) Floor stocks refunds.--Section 6412(a)(1) (relating to 
     floor stocks refunds) is amended--
       [(A) by striking ``2005'' each place it appears and 
     inserting ``2011'', and
       [(B) by striking ``2006'' each place it appears and 
     inserting ``2012''.
       [(b) Extension of Certain Exemptions.--The following 
     provisions are each amended by striking ``2005'' and 
     inserting ``2011'':
       [(1) Section 4221(a) (relating to certain tax-free sales).
       [(2) Section 4483(g) (relating to termination of exemptions 
     for highway use tax).
       [(c) Extension of Deposits Into, and Certain Transfers 
     From, Trust Fund.--Subsections (b), (c)(2), and (c)(3) of 
     section 9503 (relating to the Highway Trust Fund) are 
     amended--
       [(1) by striking ``2005'' each place it appears and 
     inserting ``2011'', and
       [(2) by striking ``2006'' each place it appears and 
     inserting ``2012''.
       [(d) Extension and Expansion of Expenditures From Trust 
     Fund.--
       [(1) Highway account.--Section 9503 is amended by striking 
     subsection (c)(1) and inserting the following:
       [``(1) Federal-aid highway and safety programs.--Except as 
     provided in subsection (e), amounts in the Highway Trust Fund 
     shall be available, as provided by appropriation Acts, for 
     making expenditures authorized by law to be paid out of the 
     Highway Trust Fund before October 1, 2011, to meet those 
     obligations of the United States heretofore or hereafter 
     incurred under the following Acts, as in effect on the date 
     of enactment of the last Act listed:
       [``(A) The Highway Revenue Act of 1956.
       [``(B) The Surface Transportation Assistance Act of 1982.
       [``(C) The Surface Transportation and Uniform Relocation 
     Assistance Act of 1987.
       [``(D) The Intermodal Surface Transportation Efficiency Act 
     of 1991.
       [``(E) The Transportation Equity Act for the 21st Century.
       [``(F) The Motor Carrier Safety Improvement Act of 1999.
       [``(G) The Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003.''.
       [(2) Mass transit account.--Section 9503(e)(3) is amended 
     to read as follows:
       [``(3) Expenditures from account.--Amounts in the Mass 
     Transit Account shall be available, as provided by 
     appropriation Acts, for making capital or capital-related 
     expenditures before October 1, 2011 (including capital 
     expenditures for new projects) in accordance with the 
     following Acts and provisions of law, as in effect on the 
     date of enactment of the last Act listed:
       [``(A) Section 5338(a)(1) or (b)(1) of title 49.
       [``(B) The Intermodal Surface Transportation Efficiency Act 
     of 1991.
       [``(C) The Transportation Equity Act for the 21st Century.
       [``(D) The Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003.''.

     [SEC. 9003. EXTENSION OF TAX BENEFITS FOR ALCOHOL FUELS.

       [(a) Extension of Tax Benefits.--
       [(1) Extension.--The following provisions are each amended 
     by striking ``2007'' each place it appears and inserting 
     ``2014'':
       [(A) Section 4041(b)(2)(C)(ii) and (D) (relating to 
     termination of reduction in tax for qualified methanol and 
     ethanol fuel).
       [(B) Section 4041(k)(3) (relating to termination of rates 
     relating to fuels containing alcohol).
       [(C) Section 4081(c)(8) (relating to termination of special 
     rate for taxable fuels mixed with alcohol).
       [(D) Section 4091(c)(5) (relating to termination of reduced 
     rate of tax for aviation fuel in alcohol mixture, etc.).
       [(E) Section 40(h) (relating to termination of credit for 
     ethanol blenders).
       [(2) Extension of refund authority.--Paragraph (4) of 
     section 6427(f) (relating to refund for gasoline, diesel 
     fuel, and aviation fuel used to produce certain alcohol 
     fuels), as amended by the Taxpayer Relief Act of 1997, is 
     amended by striking ``2007'' and inserting ``2012''.
       [(3) Credit for alcohol used as a fuel.--Paragraph (1) of 
     section 40(e) (relating to termination of credit for alcohol 
     used as a fuel) is amended--
       [(A) by striking ``December 31, 2007'' in subparagraph (A) 
     and inserting ``December 31, 2014'', and
       [(B) by striking ``January 1, 2008'' and inserting 
     ``January 1, 2015''.
       [(4) Tariff schedule.--Headings 9901.00.50 and 9901.00.52 
     of the Harmonized Tariff Schedule of the United States (19 
     U.S.C. 3007) are each amended in the effective period column 
     by striking ``10/1/2007'' each place it appears and inserting 
     ``10/1/2014''.
       [(b) Conforming Amendments.--
       [(1) Amount of reduced credit for ethanol blenders.--The 
     table in paragraph (2) of 40(h) is amended by striking 
     ``2005, 2006, or 2007'' and inserting ``2005 through 2014''.
       [(2) Applicable blender rate for exempted qualified 
     methanol and ethanol fuel.--Section 4041(b)(2)(C) is amended 
     by striking ``2001'' and inserting ``2008''.

     [SEC. 9004. PRIVATE ACTIVITY BONDS FOR SURFACE TRANSPORTATION 
                   INFRASTRUCTURE.

       [(a)  Exempt Facility Bonds.--Section 142 is amended--
       [(1) in subsection (a) by--
       [(A) striking ``or'' at the end of paragraph (12);
       [(B) striking the period at the end of paragraph (13) and 
     inserting a comma; and
       [(C) adding after paragraph (13) the following new 
     paragraphs:
       [``(14) highway facilities, or
       [``(15) surface freight transfer facilities.''; and
       [(2) by adding new subsections (l), (m), and (n) at the 
     end, as follows:
       [``(l) Highway Facilities.--For purposes of subsection 
     (a)(14), the term `highway facilities' means--
       [``(1) a surface transportation project eligible for 
     Federal assistance under title 23, United States Code (as in 
     effect on the date of enactment of this subsection), or
       [``(2) a project for an international bridge or tunnel for 
     which an international entity authorized under Federal or 
     State law is responsible.
       [``(m) Surface Freight Transfer Facilities.--For purposes 
     of subsection (a)(15), the term ``surface freight transfer 
     facilities'' means facilities for the transfer of freight 
     from truck to rail or rail to truck (including any temporary 
     storage facilities directly related to such transfers).
       [``(n) Aggregate Face Amount of Tax-Exempt Financing for 
     Highway Facilities and Surface Freight Transfer Facilities.
       [``(1) In general.--The aggregate face amount of bonds 
     issued pursuant to subsections (a)(14) (relating to highway 
     facilities) and (a)(15) (relating to surface freight transfer 
     facilities) shall not exceed $15,000,000,000, determined 
     without regard to any bond the proceeds of which are used 
     exclusively to refund a bond issued pursuant to either of 
     such subsections (or a bond which is a part of a series of 
     refundings of a bond so issued) if the amount of the 
     refunding bond does not exceed the outstanding amount of the 
     refunded bond.
       [``(2) Allocation.--The Secretary of Transportation shall 
     allocate the amount described in paragraph (1) among eligible 
     projects satisfying the requirements of subsection (a)(14) or 
     (a)(15).''.
       [(b) Volume Cap, Exception for Certain Bonds.--Section 
     146(g) is amended in paragraph (3), by--
       [(1) striking ``(12), or (13)'' and inserting ``(12), (13), 
     (14), or (15)''; and
       [(2) striking ``and qualified public educational 
     facilities'' and inserting ``qualified public educational 
     facilities, highway facilities, and surface freight transfer 
     facilities''.
       [(c) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     [SEC. 9005. ALL ALCOHOL FUEL TAXES TRANSFERRED TO HIGHWAY 
                   TRUST FUND.

       [(a) In General.--Section 9503(b)(4) (relating to certain 
     taxes not transferred to Highway Trust Fund) is amended--
       [(1) by adding ``or'' at the end of subparagraph (C);
       [(2) in subparagraph (D)(iii), by striking ``, and'' after 
     ``2005'' and inserting a period; and
       [(3) by striking subparagraphs (E) and (F).
       [(b) Effective Date.--The amendments made by this section 
     shall apply to taxes imposed after September 30, 2003.

     [SEC. 9006. TRANSFER FROM HIGHWAY TRUST FUND TO BOAT SAFETY 
                   ACCOUNT.

       [(a) In General.--Section 9503(c)(4)(A) is amended by 
     striking ``2005'' and inserting ``2011''.
       [(b) Conforming Amendments to Land and Water Conservation 
     Fund.--Section 201(b)

[[Page 812]]

     of the Land and Water Conservation Fund Act of 1965 (16 
     U.S.C. 460l-11(b)) is amended--
       [(1) by striking ``2003'' and inserting ``2009'', and
       [(2) by striking ``2004'' each place it appears and 
     inserting ``2010''.
       [(c) Technical Correction to Homeland Security Act.--
     Section 1511(e)(2) of the Homeland Security Act of 2002 
     (Public Law No. 107-296) is amended by striking ``and to any 
     funds provided to the Coast Guard from the Aquatic Resources 
     Trust Fund of the Highway Trust Fund for boating safety 
     programs'', and inserting ``and any funds provided to the 
     Coast Guard from the Highway Trust Fund and transferred into 
     the Boat Safety Account of the Aquatic Resources Trust Fund 
     for boating safety programs.''.
       [(d) Expenditures From Boat Safety Account.--Section 
     9504(c) is amended by striking ``2003'' and inserting 
     ``2009''.

     [SEC. 9007. EXTENSION OF SMALL-ENGINE FUEL TAXES TRANSFERRED 
                   TO SPORT FISH RESTORATION ACCOUNT.

       [Section 9503(c)(5)(A) is amended by striking the year 
     ``2005'' and inserting ``2011''.

     [SEC. 9008. TECHNICAL CORRECTION.

       [The last sentence of paragraph (2) of section 9504(b) is 
     amended by striking ``subparagraph (B)'', and inserting 
     ``subparagraph (C)''.

     [SEC. 9009. TRANSFER BY REGISTERED PIPELINE, VESSEL, OR BARGE 
                   REQUIRED FOR FUEL TAX EXEMPTION OF BULK 
                   TRANSFERS TO REGISTERED TERMINALS OR 
                   REFINERIES; DISPLAY OF REGISTRATION 
                   REQUIREMENT.

       [(a) In General.--Section 4081(a)(1)(B) (relating to 
     exemption for bulk transfers to registered terminals or 
     refineries) is amended by inserting ``, bulk carrier,'' after 
     ``the taxable fuel''.
       [(b) Civil Penalty for Carrying Taxable Fuels by 
     Nonregistered Pipelines or Vessels.--
       [(1) In general.--Part II of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding at 
     the end the following new section:

     [``Sec. 6717. Failure to register under section 4101

       [``(a) Failure To Register.--Any person who fails to 
     register with the Secretary as required by regulations under 
     section 4101 shall pay a penalty of $1,000 for each day 
     during the period of such failure in which such person 
     engages in an activity for which registration is required.
       [``(b) Joint and Several Liability.--
       [``(1) In general.--If a penalty is imposed under this 
     section on any business entity, each officer, employee, or 
     agent of such entity or other contracting party who willfully 
     participated in any act giving rise to such penalty shall be 
     jointly and severally liable with such entity for such 
     penalty.
       [``(2) Affiliated groups.--If a business entity described 
     in paragraph (1) is part of an affiliated group (as defined 
     in section 1504(a)), the parent corporation of such entity 
     shall be jointly and severally liable with such entity for 
     the penalty imposed under this section.''.
       [(2) Conforming amendment.--The table of sections for part 
     II of subchapter B of chapter 68 is amended by adding at the 
     end the following new item:

[``6717. Failure to register under section 4101.''.
       [(c) Display of Registration.--
       [(1) In general.--Section 4101 (relating to registration 
     and bond) is amended by adding at the end the following new 
     subsection:
       [``(e) Display of Registration.--Every vessel operator 
     required by the Secretary to register under this section with 
     respect to the tax imposed by section 4081 shall display 
     proof of such registration in such manner as the Secretary 
     may prescribe.''.
       [(2) Civil penalty for failure to display registration.--
       [(A) In general.--Part II of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding at 
     the end the following new section:

     [``Sec. 6718. Failure to display proof of registration by 
       vessels or barges

       [``(a) Failure To Display Proof of Registration.--Every 
     vessel operator who fails to display proof of registration 
     when required to do so pursuant to section 4101(e) shall pay 
     a penalty of $500 for each such failure. With respect to any 
     vessel, only one penalty shall be imposed by this section 
     during any calendar month.
       [``(b) Multiple Violations.--In determining the penalty 
     under subsection (a) on any person or operator, subsection 
     (a) shall be applied by increasing the amount imposed in 
     subsection (a) by the product of such amount and the number 
     of prior penalties (if any) imposed by this section on such 
     person (or a related person or any predecessor of such person 
     or related person).''.
       [(B) Conforming Amendment.--The table of sections for part 
     II of subchapter B of chapter 68 is amended by adding at the 
     end the following new item:

[``6718. Failure to display proof of registration by vessels or 
              barges.''.
       [(d) Effective Date.--The amendments made by this section 
     shall take effect 90 days after the date of enactment of this 
     Act.

     [SEC. 9010. RETURNS FILED ELECTRONICALLY.

       [(a) Information Reporting.--Section 4101(d) (relating to 
     information reporting) is amended to read as follows:
       [``(d) Information Reporting.--
       [``(1) The Secretary may require--
       [``(A) information reporting by any person registered under 
     this section, and
       [``(B) information reporting by such other persons as the 
     Secretary deems necessary to carry out this part.
       [``(2) Information reporting required by the Secretary 
     under paragraph (1) of this subsection shall be by electronic 
     format for any person having at least 25 reportable 
     transactions in a month.''.
       [(b) Use Tax on Certain Vehicles.--Section 4481(b) is 
     amended by adding the following new sentence at the end: 
     ``Any return of tax imposed by this section reporting at 
     least 25 vehicles shall be filed by electronic format.''.
       [(c) Electronic Format.--The Secretary of the Treasury 
     shall describe the electronic formats for filing under 
     subsections (a) and (b) not later than 90 days after the date 
     of the enactment of this Act.
       [(d) Effective Date.--The amendment made by subsection (a) 
     shall apply to returns due after the date the Secretary of 
     the Treasury describes the electronic format for filing under 
     subsection (a) and the amendment made by subsection (b) shall 
     apply to returns due after the date the Secretary of the 
     Treasury describes the electronic format for filing under 
     subsection (b).

     [SEC. 9011. CIVIL PENALTY FOR REFUSAL OF ENTRY.

       [(a) Section 4083(c)(3) is amended by adding at the end a 
     new sentence as follows: ``For purposes of this subsection, 
     the penalty provided by section 7342 shall be treated as an 
     assessable penalty and assessed in accordance with section 
     6671.''.
       [(b) Effective Date.-- The amendments made by this section 
     shall take effect 90 days after the date of enactment of this 
     Act.

     [SEC. 9012. REQUIREMENT OF TAX PAYMENT DECAL; ELIMINATION OF 
                   INSTALLMENT PAYMENTS OF HIGHWAY USE TAX.

       [(a) Display of Proof of Payment of Tax.--Section 4481(b) 
     (relating to imposition of tax on use of certain highway 
     motor vehicles) is amended by adding a sentence at the end as 
     follows: ``Every person, agency, or instrumentality who has 
     paid the tax imposed by this section shall display proof of 
     such payment in a manner as the Secretary may prescribe.''.
       [(b) Civil Penalty for Failure To Display Proof of Tax 
     Payment Decal.--
       [(1) In general.--Part II of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by adding at 
     the end the following new section:

     [``Sec. 6719. Failure to display proof of tax payment decal

       [``(a) Imposition of Penalty.--Each person, agency, or 
     instrumentality who fails to display proof of payment of tax 
     when required to do so pursuant to the last sentence of 
     section 4481(b) (relating to the display of proof of payment 
     of tax) shall pay a penalty of $50. With respect to any 
     vehicle, only one penalty shall be imposed by this section 
     during any calendar month.
       [``(b) Multiple Violations.--In determining the penalty 
     under subsection (a) on any person, agency, or 
     instrumentality, subsection (a) shall be applied by 
     increasing the amount imposed in subsection (a) by the 
     product of such amount and the number of prior penalties (if 
     any) imposed by this section on such person, agency, or 
     instrumentality. ''.
       [(2) Conforming amendment.--The table of sections for part 
     II of subchapter B of chapter 68 is amended by adding at the 
     end the following new item:

[``6719. Failure to display proof of tax payment decal.''.
       [(c) Elimination of Privilege To Pay Highway Use Tax in 
     Installments.--
       [(1) Repeal.--Section 6156 (relating to the privilege to 
     pay in installments the tax imposed under section 4481 of 
     such Code on use of highway motor vehicles) is repealed.
       [(2) Conforming amendment.--The table of sections for 
     subchapter A of chapter 62 is amended by striking the item 
     relating to section 6156.
       [(d) Effective Date.--The amendments made by this section 
     shall apply to taxable periods beginning after the date of 
     the enactment of this Act.

     [SEC. 9013. ADDITIONAL RULES REGARDING INSPECTIONS OF 
                   RECORDS.

       [(a) Provision of Copies of Records.--Section 4102 
     (relating to inspection of records by local officers) is 
     amended by inserting ``, and copies shall be furnished upon 
     request of,'' after ``inspection by''.
       [(b) Inspection by Other Enforcement Agencies.--Section 
     4102 of the Internal Revenue Code of 1986, as amended by 
     subsection (a), is amended by inserting ``; such records and 
     information on returns required to be filed with respect to 
     taxes under section 4481 shall be open to inspection by 
     officers of any State agency charged with the registration 
     and licensing of vehicles described in such section and 
     officers of any other Federal or State agency charged with 
     the enforcement of Federal or State law regarding taxable 
     fuels or criminal activities regarding taxable fuels'' after 
     ``section 4083)''.
       [(c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.]

[[Page 813]]



     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. General definitions.
Sec. 3. Definitions for title 23.

                     TITLE I--FEDERAL-AID HIGHWAYS

                          Subtitle A--Funding

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Minimum guarantee.
Sec. 1105. Revenue aligned budget authority.

                        Subtitle B--New Programs

Sec. 1201. Infrastructure performance and maintenance program.
Sec. 1202. Future of surface transportation system.
Sec. 1203. Freight transportation gateways; freight intermodal 
              connections.
Sec. 1204. Construction of ferry boats and ferry terminal facilities.
Sec. 1205. Designation of Daniel Patrick Moynihan Interstate Highway.

                          Subtitle C--Finance

Sec. 1301. Federal share.
Sec. 1302. Transfer of highway and transit funds.
Sec. 1303. Transportation Infrastructure Finance and Innovation Act 
              Amendments.
Sec. 1304. Facilitation of international registration plans and 
              international fuel tax agreements.
Sec. 1305. National Commission on Future Revenue Sources to Support the 
              Highway Trust Fund and Finance the Needs of the Surface 
              Transportation System.
Sec. 1306. State infrastructure banks.

                           Subtitle D--Safety

Sec. 1401. Highway safety improvement program.
Sec. 1402. Operation lifesaver.
Sec. 1403. License suspension.
Sec. 1404. Bus axle weight exemption.
Sec. 1405. Safe routes to schools program.
Sec. 1406. Purchases of equipment.
Sec. 1407. Workzone safety.
Sec. 1408. Worker injury prevention and free flow of vehicular traffic.

             Subtitle E--Environmental Planning and Review

                   Chapter 1--Transportation Planning

Sec. 1501. Integration of natural resource concerns into State and 
              metropolitan transportation planning.
Sec. 1502. Consultation between transportation agencies and resource 
              agencies in transportation planning.
Sec. 1503. Integration of natural resource concerns into transportation 
              project planning.
Sec. 1504. Public involvement in transportation planning and projects.
Sec. 1505. Project mitigation.

         Chapter 2--Transportation Project Development Process

Sec. 1511. Transportation project development process.
Sec. 1512. Assumption of responsibility for categorical exclusions.
Sec. 1513. Surface transportation project delivery pilot program.
Sec. 1514. Regulations.

                        Chapter 3--Miscellaneous

Sec. 1521. Critical real property acquisition.
Sec. 1522. Planning capacity building initiative.

                        Subtitle F--Environment

Sec. 1601. Environmental restoration and pollution abatement; control 
              of invasive plant species and establishment of native 
              species.
Sec. 1602. National scenic byways program.
Sec. 1603. Recreational trails program.
Sec. 1604. Exemption of Interstate System.
Sec. 1605. Standards.
Sec. 1606. Use of high occupancy vehicle lanes.
Sec. 1607. Bicycle transportation and pedestrian walkways.
Sec. 1608. Idling reduction facilities in interstate rights-of-way.
Sec. 1609. Toll programs.
Sec. 1610. Federal reference method.
Sec. 1611. Addition of particulate matter areas to CMAQ.
Sec. 1612. Addition to CMAQ-eligible projects.
Sec. 1613. Improved interagency consultation.
Sec. 1614. Evaluation and assessment of CMAQ projects.
Sec. 1615. Synchronized planning and conformity timelines, 
              requirements, and horizon.
Sec. 1616. Transition to new air quality standards.
Sec. 1617. Reduced barriers to air quality improvements.
Sec. 1618. Air quality monitoring data influenced by exceptional 
              events.
Sec. 1619. Conforming amendments.
Sec. 1620. Highway stormwater discharge mitigation program.

                         Subtitle G--Operations

Sec. 1701. Transportation systems management and operations.
Sec. 1702. Real-time system management information program.

                  Subtitle H--Federal-Aid Stewardship

Sec. 1801. Future Interstate System routes.
Sec. 1802. Stewardship and oversight.
Sec. 1803. Design-build contracting.
Sec. 1804. Program efficiencies--finance.
Sec. 1805. Set-asides for interstate discretionary projects.
Sec. 1806. Federal lands highways program.
Sec. 1807. Emergency relief.
Sec. 1808. Highway bridge program.
Sec. 1809. Appalachian development highway system.
Sec. 1810. Multistate corridor program.
Sec. 1811. Border planning, operations, technology, and capacity 
              program.
Sec. 1812. Puerto Rico highway program.
Sec. 1813. National historic covered bridge preservation.
Sec. 1814. Transportation and community and system preservation pilot 
              program.
Sec. 1815. Tribal-State road maintenance agreements.
Sec. 1816. Forest highways.
Sec. 1817. Territorial highway program.
Sec. 1818. Magnetic levitation transportation technology deployment 
              program.
Sec. 1819. Donations and credits.
Sec. 1820. Disadvantaged business enterprises.

                   Subtitle I--Technical Corrections

Sec. 1901. Repeal or update of obsolete text.
Sec. 1902. Clarification of date.
Sec. 1903. Inclusion of requirements for signs identifying funding 
              sources in title 23.
Sec. 1904. Inclusion of Buy America requirements in title 23.
Sec. 1905. Technical amendments to nondiscrimination section.

                   TITLE II--TRANSPORTATION RESEARCH

                          Subtitle A--Funding

Sec. 2001. Authorization of appropriations.
Sec. 2002. Obligation ceiling.
Sec. 2003. Notice.

                  Subtitle B--Research and Technology

Sec. 2101. Research and technology program.
Sec. 2102. Study of data collection and statistical analysis efforts.
Sec. 2103. Centers for surface transportation excellence.

         Subtitle C--Intelligent Transportation System Research

Sec. 2201. Intelligent transportation system research and technical 
              assistance program.

               TITLE III--INTERMODAL PASSENGER FACILITIES

Sec. 3002. Intermodal passenger facilities.

     TITLE IV--FEDERAL AID IN SPORT FISH RESTORATION ACT AMENDMENTS

Sec. 4001. Amendment of Federal Aid in Fish Restoration Act.
Sec. 4002. Authorization of appropriations.
Sec. 4003. Division of annual appropriations.
Sec. 4004. Maintenance of projects.
Sec. 4005. Boating infrastructure.
Sec. 4006. Requirements and restrictions concerning use of amounts for 
              expenses for administration.
Sec. 4007. Payments of funds to and cooperation with Puerto Rico, the 
              District of Columbia, Guam, American Samoa, Commonwealth 
              of the Northern Marina Islands, and Virgin Islands.
Sec. 4008. Multistate conservation grant program.

     SEC. 2. GENERAL DEFINITIONS.

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

     SEC. 3. DEFINITIONS FOR TITLE 23.

       Section 101 of title 23, United States Code, is amended by 
     striking subsection (a) and inserting the following:
       ``(a) Definitions.--In this title:
       ``(1) Apportionment.--The term `apportionment' includes an 
     unexpended apportionment made under a law enacted before the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003.
       ``(2) Carpool project.--
       ``(A) In general.--The term `carpool project' means any 
     project to encourage the use of carpools and vanpools.
       ``(B) Inclusions.--The term `carpool project' includes a 
     project--
       ``(i) to provide carpooling opportunities to the elderly 
     and individuals with disabilities;
       ``(ii) to develop and implement a system for locating 
     potential riders and informing the riders of carpool 
     opportunities;
       ``(iii) to acquire vehicles for carpool use;
       ``(iv) to designate highway lanes as preferential carpool 
     highway lanes;
       ``(v) to provide carpool-related traffic control devices; 
     and
       ``(vi) to designate facilities for use for preferential 
     parking for carpools.
       ``(3) Construction.--
       ``(A) In general.--The term `construction' means the 
     supervision, inspection, and actual building of, and 
     incurring of all costs incidental to the construction or 
     reconstruction of a highway, including bond costs and other 
     costs relating to the issuance in accordance with section 122 
     of bonds or other debt financing instruments and costs 
     incurred by the State in performing Federal-aid project 
     related audits that directly benefit the Federal-aid highway 
     program.
       ``(B) Inclusions.--The term `construction' includes--
       ``(i) locating, surveying, and mapping (including the 
     establishment of temporary and permanent geodetic markers in 
     accordance with specifications of the National Oceanic and 
     Atmospheric Administration);

[[Page 814]]

       ``(ii) resurfacing, restoration, and rehabilitation;
       ``(iii) acquisition of rights-of-way;
       ``(iv) relocation assistance, acquisition of replacement 
     housing sites, and acquisition and rehabilitation, 
     relocation, and construction of replacement housing;
       ``(v) elimination of hazards of railway grade crossings;
       ``(vi) elimination of roadside obstacles;
       ``(vii) improvements that directly facilitate and control 
     traffic flow, such as--

       ``(I) grade separation of intersections;
       ``(II) widening of lanes;
       ``(III) channelization of traffic;
       ``(IV) traffic control systems; and
       ``(V) passenger loading and unloading areas;

       ``(viii) capital improvements that directly facilitate an 
     effective vehicle weight enforcement program, such as--

       ``(I) scales (fixed and portable);
       ``(II) scale pits;
       ``(III) scale installation; and
       ``(IV) scale houses;

       ``(ix) improvements directly relating to securing 
     transportation infrastructures for detection, preparedness, 
     response, and recovery;
       ``(x) operating costs relating to traffic monitoring, 
     management, and control;
       ``(xi) operational movements; and
       ``(xii) transportation system management and operations.
       ``(4) County.--The term `county' includes--
       ``(A) a corresponding unit of government under any other 
     name in a State that does not have county organizations; and
       ``(B) in those States in which the county government does 
     not have jurisdiction over highways, any local government 
     unit vested with jurisdiction over local highways.
       ``(5) Federal-aid highway.--
       ``(A) In general.--The term `Federal-aid highway' means a 
     highway eligible for assistance under this chapter.
       ``(B) Exclusions.--The term `Federal-aid highway' does not 
     include a highway classified as a local road or rural minor 
     collector.
       ``(6) Federal-aid system.--The term `Federal-aid system' 
     means any of the Federal-aid highway systems described in 
     section 103.
       ``(7) Federal lands highway.--The term `Federal lands 
     highway' means--
       ``(A) a forest highway;
       ``(B) a recreation road;
       ``(C) a public Forest Service road;
       ``(D) a park road;
       ``(E) a parkway;
       ``(F) a refuge road;
       ``(G) an Indian reservation road that is a public road; and
       ``(H) a public lands highway.
       ``(8) Forest highway.--The term `forest highway' means a 
     forest road that is--
       ``(A) under the jurisdiction of, and maintained by, a 
     public authority; and
       ``(B) is open to public travel.
       ``(9) Forest road or trail.--
       ``(A) In general.--The term `forest road or trail' means a 
     road or trail wholly or partly within, or adjacent to, and 
     serving National Forest System land that is necessary for the 
     protection, administration, use, and development of the 
     resources of that land.
       ``(B) Inclusions.--The term `forest road or trail' 
     includes--
       ``(i) a classified forest road;
       ``(ii) an unclassified forest road;
       ``(iii) a temporary forest road; and
       ``(iv) a public forest service road.
       ``(10) Freight transportation gateway.--
       ``(A) In general.--The term `freight transportation 
     gateway' means a nationally or regionally significant 
     transportation port of entry or hub for domestic and global 
     trade or military mobilization.
       ``(B) Inclusions.--The term `freight transportation 
     gateway' includes freight intermodal and Strategic Highway 
     Network connections that provide access to and from a port or 
     hub described in subparagraph (A).
       ``(11) Highway.--The term `highway' includes--
       ``(A) a road, street, and parkway;
       ``(B) a right-of-way, bridge, railroad-highway crossing, 
     tunnel, drainage structure, sign, guardrail, and protective 
     structure, in connection with a highway; and
       ``(C) a portion of any interstate or international bridge 
     or tunnel (including the approaches to the interstate or 
     international bridge or tunnel, and such transportation 
     facilities as may be required by the United States Customs 
     Service and the Bureau of Citizenship and Immigration 
     Services in connection with the operation of an international 
     bridge or tunnel), the cost of which is assumed by a State 
     transportation department.
       ``(12) Highway safety improvement project.--The term 
     `highway safety improvement project' means a project that 
     meets the requirements of section 148.
       ``(13) Indian reservation road.--
       ``(A) In general.--The term `Indian reservation road' means 
     a public road that is located within or provides access to an 
     area described in subparagraph (B) on which or in which 
     reside Indians or Alaskan Natives that, as determined by the 
     Secretary of the Interior, are eligible for services 
     generally available to Indians under Federal laws 
     specifically applicable to Indians.
       ``(B) Areas.--The areas referred to in subparagraph (A) 
     are--
       ``(i) an Indian reservation;
       ``(ii) Indian trust land or restricted Indian land that is 
     not subject to fee title alienation without the approval of 
     the Federal Government; and
       ``(iii) an Indian or Alaska Native village, group, or 
     community.
       ``(14) Interstate system.--The term `Interstate System' 
     means the Dwight D. Eisenhower National System of Interstate 
     and Defense Highways described in section 103(c).
       ``(15) Maintenance.--
       ``(A) In general.--The term `maintenance' means the 
     preservation of a highway.
       ``(B) Inclusions.--The term `maintenance' includes the 
     preservation of--
       ``(i) the surface, shoulders, roadsides, and structures of 
     a highway; and
       ``(ii) such traffic-control devices as are necessary for 
     safe, secure, and efficient use of a highway.
       ``(16) Maintenance area.--The term `maintenance area' means 
     an area that was designated as a nonattainment area, but was 
     later redesignated by the Administrator of the Environmental 
     Protection Agency as an attainment area, under section 107(d) 
     of the Clean Air Act (42 U.S.C. 7407(d)).
       ``(17) National forest system road or trail.--The term 
     `National Forest System road or trail' means a forest road or 
     trail that is under the jurisdiction of the Forest Service.
       ``(18) National highway system.--The term `National Highway 
     System' means the Federal-aid highway system described in 
     section 103(b).
       ``(19) Operating costs for traffic monitoring, management, 
     and control.--The term `operating costs for traffic 
     monitoring, management, and control' includes--
       ``(A) labor costs;
       ``(B) administrative costs;
       ``(C) costs of utilities and rent;
       ``(D) costs incurred by transportation agencies for 
     technology to monitor critical transportation infrastructure 
     for security purposes; and
       ``(E) other costs associated with transportation systems 
     management and operations and the continuous operation of 
     traffic control, such as--
       ``(i) an integrated traffic control system;
       ``(ii) an incident management program; and
       ``(iii) a traffic control center.
       ``(20) Operational improvement.--
       ``(A) In general.--The term `operational improvement' 
     means--
       ``(i) a capital improvement for installation or 
     implementation of--

       ``(I) a transportation system management and operations 
     program;
       ``(II) traffic and transportation security surveillance and 
     control equipment;
       ``(III) a computerized signal system;
       ``(IV) a motorist information system;
       ``(V) an integrated traffic control system;
       ``(VI) an incident management program;
       ``(VII) equipment and programs for transportation response 
     to manmade and natural disasters; or
       ``(VIII) a transportation demand management facility, 
     strategy, or program; and

       ``(ii) such other capital improvements to a public road as 
     the Secretary may designate by regulation.
       ``(B) Exclusions.--The term `operational improvement' does 
     not include--
       ``(i) a resurfacing, restorative, or rehabilitative 
     improvement;
       ``(ii) construction of an additional lane, interchange, or 
     grade separation; or
       ``(iii) construction of a new facility on a new location.
       ``(21) Park road.--The term `park road' means a public road 
     (including a bridge built primarily for pedestrian use, but 
     with capacity for use by emergency vehicles) that is located 
     within, or provides access to, an area in the National Park 
     System with title and maintenance responsibilities vested in 
     the United States.
       ``(22) Parkway.--The term `parkway' means a parkway 
     authorized by an Act of Congress on land to which title is 
     vested in the United States.
       ``(23) Project.--The term `project' means--
       ``(A)(i) an undertaking to construct a particular portion 
     of a highway; or
       ``(ii) if the context so implies, a particular portion of a 
     highway so constructed; and
       ``(B) any other undertaking eligible for assistance under 
     this title.
       ``(24) Project agreement.--The term `project agreement' 
     means the formal instrument to be executed by the Secretary 
     and a State transportation department under section 106.
       ``(25) Public authority.--The term `public authority' means 
     a Federal, State, county, town, or township, Indian tribe, 
     municipal or other local government or instrumentality with 
     authority to finance, build, operate, or maintain toll or 
     toll-free facilities.
       ``(26) Public forest service road.--The term `public Forest 
     Service road' means a classified forest road--
       ``(A) that is open to public travel;
       ``(B) for which title and maintenance responsibility is 
     vested in the Federal Government; and
       ``(C) that has been designated a public road by the Forest 
     Service.
       ``(27) Public lands development roads and trails.--The term 
     `public lands development roads and trails' means roads and 
     trails that the Secretary of the Interior determines are of 
     primary importance for the development, protection, 
     administration, and use of public lands and resources under 
     the control of the Secretary of the Interior.
       ``(28) Public lands highway.--The term `public lands 
     highway' means--
       ``(A) a forest road that is--
       ``(i) under the jurisdiction of, and maintained by, a 
     public authority; and
       ``(ii) open to public travel; and

[[Page 815]]

       ``(B) any highway through unappropriated or unreserved 
     public land, nontaxable Indian land, or any other Federal 
     reservation (including a main highway through such land or 
     reservation that is on the Federal-aid system) that is--
       ``(i) under the jurisdiction of, and maintained by, a 
     public authority; and
       ``(ii) open to public travel.
       ``(29) Public road.--The term `public road' means any road 
     or street that is--
       ``(A) under the jurisdiction of, and maintained by, a 
     public authority; and
       ``(B) open to public travel.
       ``(30) Recreational road.--The term `recreational road' 
     means a public road--
       ``(A) that provides access to a museum, lake, reservoir, 
     visitors center, gateway to a major wilderness area, public 
     use area, or recreational or historic site; and
       ``(B) for which title is vested in the Federal Government.
       ``(31) Refuge road.--The term `refuge road' means a public 
     road--
       ``(A) that provides access to or within a unit of the 
     National Wildlife Refuge System or a national fish hatchery; 
     and
       ``(B) for which title and maintenance responsibility is 
     vested in the United States Government.
       ``(32) Rural area.--The term `rural area' means an area of 
     a State that is not included in an urban area.
       ``(33) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(34) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) the Commonwealth of Puerto Rico.
       ``(35) State funds.--The term `State funds' includes funds 
     that are--
       ``(A) raised under the authority of the State (or any 
     political or other subdivision of a State); and
       ``(B) made available for expenditure under the direct 
     control of the State transportation department.
       ``(36) State transportation department.--The term `State 
     transportation department' means the department, agency, 
     commission, board, or official of any State charged by the 
     laws of the State with the responsibility for highway 
     construction.
       ``(37) Territorial highway system.--The term `territorial 
     highway system' means the system of arterial highways, 
     collector roads, and necessary interisland connectors in 
     American Samoa, the Commonwealth of the Northern Mariana 
     Islands, Guam, and the United States Virgin Islands that have 
     been designated by the appropriate Governor or chief 
     executive officer of a territory, and approved by the 
     Secretary, in accordance with section 215.
       ``(38) Transportation enhancement activity.--The term 
     `transportation enhancement activity' means, with respect to 
     any project or the area to be served by the project, any of 
     the following activities as the activities relate to surface 
     transportation:
       ``(A) Provision of facilities for pedestrians and bicycles.
       ``(B) Provision of safety and educational activities for 
     pedestrians and bicyclists.
       ``(C) Acquisition of scenic easements and scenic or 
     historic sites (including historic battlefields).
       ``(D) Conduct of scenic or historic highway programs 
     (including the provision of tourist and welcome center 
     facilities).
       ``(E) Landscaping and other scenic beautification.
       ``(F) Historic preservation.
       ``(G) Rehabilitation and operation of historic 
     transportation buildings, structures, or facilities 
     (including historic railroad facilities and canals).
       ``(H) Preservation of abandoned railway corridors 
     (including the conversion and use of the corridors for 
     pedestrian or bicycle trails).
       ``(I) Control and removal of outdoor advertising.
       ``(J) Archaeological planning and research.
       ``(K) Environmental mitigation--
       ``(i) to address water pollution due to highway runoff; or
       ``(ii) reduce vehicle-caused wildlife mortality while 
     maintaining habitat connectivity.
       ``(L) Establishment of transportation museums.
       ``(39) Transportation systems management and operations.--
       ``(A) In general.--The term `transportation systems 
     management and operations' means an integrated program to 
     optimize the performance of existing infrastructure through 
     the implementation of multimodal and intermodal, cross-
     jurisdictional systems, services, and projects designed to 
     preserve capacity and improve security, safety, and 
     reliability of the transportation system.
       ``(B) Inclusions.--The term `transportation systems 
     management and operations' includes--
       ``(i) regional operations collaboration and coordination 
     activities between transportation and public safety agencies; 
     and
       ``(ii) improvements to the transportation system such as 
     traffic detection and surveillance, arterial management, 
     freeway management, demand management, work zone management, 
     emergency management, electronic toll collection, automated 
     enforcement, traffic incident management, roadway weather 
     management, traveler information services, commercial vehicle 
     operations, traffic control, freight management, and 
     coordination of highway, rail, transit, bicycle, and 
     pedestrian operations.
       ``(40) Urban area.--The term `urban area' means--
       ``(A) an urbanized area (or, in the case of an urbanized 
     area encompassing more than 1 State, the portion of the 
     urbanized area in each State); and
       ``(B) an urban place designated by the Bureau of the Census 
     that--
       ``(i) has a population of 5,000 or more;
       ``(ii) is not located within any urbanized area; and
       ``(iii) is located within boundaries that--

       ``(I) are fixed cooperatively by responsible State and 
     local officials, subject to approval by the Secretary; and
       ``(II) encompass, at a minimum, the entire urban place 
     designated by the Bureau of the Census (except in the case of 
     cities in the State of Maine and in the State of New 
     Hampshire).

       ``(41) Urbanized area.--The term `urbanized area' means an 
     area that--
       ``(A) has a population of 50,000 or more;
       ``(B) is designated by the Bureau of the Census; and
       ``(C) is located within boundaries that--
       ``(i) are fixed cooperatively by responsible State and 
     local officials, subject to approval by the Secretary; and
       ``(ii) encompass, at a minimum, the entire urbanized area 
     within a State as designated by the Bureau of the Census.''.

                     TITLE I--FEDERAL-AID HIGHWAYS

                          Subtitle A--Funding

     SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

       The following sums are authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account):
       (1) Interstate maintenance program.--For the Interstate 
     maintenance program under section 119 of title 23, United 
     States Code--
       (A) $5,500,000,000 for fiscal year 2004;
       (B) $6,300,000,000 for fiscal year 2005; and
       (C) $6,550,000,000 for each of fiscal years 2006 through 
     2009.
       (2) National highway system.--For the National Highway 
     System under section 103 of that title--
       (A) $6,650,000,000 for fiscal year 2004;
       (B) $7,650,000,000 for fiscal year 2005; and
       (C) $7,950,000,000 for each of fiscal years 2006 through 
     2009.
       (3) Bridge program.--For the bridge program under section 
     144 of that title--
       (A) $4,700,000,000 for fiscal year 2004;
       (B) $5,400,000,000 for fiscal year 2005; and
       (C) $5,600,000,000 for each of fiscal years 2006 through 
     2009.
       (4) Surface transportation program.--For the surface 
     transportation program under section 133 of that title--
       (A) $6,950,000,000 for fiscal year 2004;
       (B) $7,950,000,000 for fiscal year 2005; and
       (C) $8,250,000,000 for each of fiscal years 2006 through 
     2009.
       (5) Congestion mitigation and air quality improvement 
     program.--For the congestion mitigation and air quality 
     improvement program under section 149 of that title--
       (A) $1,900,000,000 for fiscal year 2004;
       (B) $2,150,000,000 for fiscal year 2005; and
       (C) $2,225,000,000 for each of fiscal years 2006 through 
     2009.
       (6) Highway safety improvement program.--For the highway 
     safety improvement program under section 148 of that title--
       (A) $1,200,000,000 for fiscal year 2004;
       (B) $1,300,000,000 for fiscal year 2005; and
       (C) $1,350,000,000 for each of fiscal years 2006 through 
     2009.
       (7) Appalachian development highway system program.--For 
     the Appalachian development highway system program under 
     section 170 of that title, $590,000,000 for each of fiscal 
     years 2004 through 2009.
       (8) Recreational trails program.--For the recreational 
     trails program under section 206 of that title, $60,000,000 
     for each of fiscal years 2004 through 2009.
       (9) Federal lands highways program.--
       (A) Indian reservation roads.--For Indian reservation roads 
     under section 204 of that title--
       (i) $300,000,000 for fiscal year 2004;
       (ii) $325,000,000 for fiscal year 2005;
       (iii) $350,000,000 for fiscal year 2006;
       (iv) $375,000,000 for fiscal year 2007;
       (v) $400,000,000 for fiscal year 2008; and
       (vi) $425,000,000 for fiscal year 2009.
       (B) Recreation roads.--For recreation roads under section 
     204 of that title, $50,000,000 for each of fiscal years 2004 
     through 2009.
       (C) Park roads and parkways.--For park roads and parkways 
     under section 204 of that title--
       (i) $300,000,000 for fiscal year 2004;
       (ii) $310,000,000 for fiscal year 2005; and
       (iii) $320,000,000 for each of fiscal years 2006 through 
     2009.
       (D) Refuge roads.--For refuge roads under section 204 of 
     that title, $30,000,000 for each of fiscal years 2004 through 
     2009.
       (E) Public lands highways.--For Federal lands highways 
     under section 204 of that title, $300,000,000 for each of 
     fiscal years 2004 through 2009.
       (F) Safety.--For safety under section 204 of that title, 
     $40,000,000 for each of fiscal years 2004 through 2009.
       (10) Multistate corridor program.--For the multistate 
     corridor program under section 171 of that title--
       (A) $112,500,000 for fiscal year 2004;
       (B) $135,000,000 for fiscal year 2005;
       (C) $157,500,000 for fiscal year 2006;
       (D) $180,000,000 for fiscal year 2007;
       (E) $202,500,000 for fiscal year 2008; and
       (F) $225,000,000 for fiscal year 2009.
       (11) Border planning, operations, and technology program.--
     For the border planning, operations, and technology program 
     under section 172 of that title--

[[Page 816]]

       (A) $112,500,000 for fiscal year 2004;
       (B) $135,000,000 for fiscal year 2005;
       (C) $157,500,000 for fiscal year 2006;
       (D) $180,000,000 for fiscal year 2007;
       (E) $202,500,000 for fiscal year 2008; and
       (F) $225,000,000 for fiscal year 2009.
       (12) National scenic byways program.--For the national 
     scenic byways program under section 162 of that title--
       (A) $34,000,000 for fiscal year 2004;
       (B) $35,000,000 for fiscal year 2005;
       (C) $36,000,000 for fiscal year 2006;
       (D) $37,000,000 for fiscal year 2007; and
       (E) $39,000,000 for each of fiscal years 2008 and 2009.
       (13) Infrastructure performance and maintenance program.--
     For carrying out the infrastructure performance and 
     maintenance program under section 139 of that title--
       (A) $2,500,000,000 for each of fiscal years 2004 through 
     2006;
       (B) $2,000,000,000 for each of fiscal years 2007 and 2008; 
     and
       (C) $500,000,000 for fiscal year 2009.
       (14) Construction of ferry boats and ferry terminal 
     facilities.--For construction of ferry boats and ferry 
     terminal facilities under section 147 of that title, 
     $38,000,000 for each of fiscal years 2004 through 2009.
       (15) Commonwealth of puerto rico highway program.--For the 
     Commonwealth of Puerto Rico highway program under section 173 
     of that title--
       (A) $140,000,000 for fiscal year 2004;
       (B) $145,000,000 for fiscal year 2005;
       (C) $149,000,000 for fiscal year 2006;
       (D) $154,000,000 for fiscal year 2007;
       (E) $160,000,000 for fiscal year 2008; and
       (F) $163,000,000 for fiscal year 2009.

     SEC. 1102. OBLIGATION CEILING.

       [RESERVED]

     SEC. 1103. APPORTIONMENTS.

       (a) Administrative Expenses.--
       (1) In general.--Section 104 of title 23, United States 
     Code, is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Administrative Expenses.--
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to be made available to the Secretary of 
     Transportation for administrative expenses of the Federal 
     Highway Administration--
       ``(A) $450,000,000 for fiscal year 2004;
       ``(B) $465,000,000 for fiscal year 2005;
       ``(C) $480,000,000 for fiscal year 2006;
       ``(D) $495,000,000 for fiscal year 2007;
       ``(E) $510,000,000 for fiscal year 2008; and
       ``(F) $525,000,000 for fiscal year 2009.
       ``(2) Purposes.--The funds authorized by this subsection 
     shall be used--
       ``(A) to administer the provisions of law to be financed 
     from appropriations for the Federal-aid highway program and 
     programs authorized under chapter 2; and
       ``(B) to make transfers of such sums as the Secretary 
     determines to be appropriate to the Appalachian Regional 
     Commission for administrative activities associated with the 
     Appalachian development highway system.
       ``(3) Availability.--The funds made available under 
     paragraph (1) shall remain available until expended.''.
       (2) Conforming amendments.--Section 104 of title 23, United 
     States Code, is amended--
       (A) in the matter preceding paragraph (1) of subsection 
     (b), by striking ``the deduction authorized by subsection (a) 
     and'';
       (B) in the first sentence of subsection (e)(1), by striking 
     ``, and also'' and all that follows through ``this section''; 
     and
       (C) in subsection (i), by striking ``deducted'' and 
     inserting ``made available''.
       (b) Metropolitan Planning.--Section 104(f) of title 23, 
     United States Code, is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Set-aside.--On October 1 of each fiscal year, the 
     Secretary shall set aside 1.5 percent of the funds authorized 
     to be appropriated for expenditure upon programs authorized 
     under this title to carry out the requirements of section 
     134.'';
       (2) in paragraph (2), by striking ``per centum'' and 
     inserting ``percent'';
       (3) in paragraph (3)--
       (A) by striking ``The funds'' and inserting the following:
       ``(A) In general.--The funds''; and
       (B) by striking ``These funds'' and all that follows and 
     inserting the following:
       ``(B) Unused funds.--Any funds that are not used to carry 
     out section 134 may be made available by a metropolitan 
     planning organization to the State to fund activities under 
     section 135.''; and
       (4) by adding at the end the following:
       ``(6) Federal share.--Funds apportioned to a State under 
     this subsection shall be matched in accordance with section 
     120(b) unless the Secretary determines that the interests of 
     the Federal-aid highway program would be best served without 
     the match.''.
       (c) Alaska Highway.--Section 104(b)(1)(A) of title 23, 
     United States Code, is amended by striking ``1998 through 
     2002'' and inserting ``2004 through 2009''.

     SEC. 1104. MINIMUM GUARANTEE.

       Section 105 of title 23, United States Code, is amended by 
     striking subsections (a) through (f) and inserting the 
     following:
       ``(a) General Rule.--For each of fiscal years 2004 through 
     2009, the Secretary shall ensure that the percentage of 
     apportionments of each State is sufficient to ensure that, 
     based on the percentage of tax payments attributable to 
     highway users in each State paid into the Highway Trust Fund 
     (other than the Mass Transit Account) in the latest fiscal 
     year for which data are available, no State's percentage 
     return from the Highway Trust Fund is less than 90.5 percent.
       ``(b) Apportionments--In making an apportionment described 
     in subsection (a) for a fiscal year, the Secretary shall 
     ensure that the rate of return of each State from the Highway 
     Trust Fund includes the total apportionments made for the 
     fiscal year for--
       ``(1) the Interstate maintenance program under section 119;
       ``(2) the National Highway System under section 103;
       ``(3) the bridge program under section 144;
       ``(4) the surface transportation program under section 133;
       ``(5) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(6) the highway safety improvement program under section 
     148;
       ``(7) the Appalachian development highway system program 
     under section 170;
       ``(8) the recreational trails program under section 206;
       ``(9) the infrastructure performance and maintenance 
     program under section 139;
       ``(10) the metropolitan planning program under section 
     104(f);
       ``(11) the equity bonus program under this section;
       ``(12) the high priority projects program under section 
     1601 of the Transportation Equity Act for the 21st Century 
     (112 Stat. 255);
       ``(13) the safe routes to school program under section 150; 
     and
       ``(14) the railway-highway crossings under section 130.''.

     SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

       Section 110 of title 23, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraphs (1) and (2), by striking ``2000'' each 
     place it appears and inserting ``2006''; and
       (B) in paragraph (2)--
       (i) by striking ``the succeeding'' and inserting ``that''; 
     and
       (ii) by striking ``and the motor carrier safety grant 
     program'';
       (2) in subsection (b)(1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) the sums authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     each of the Federal-aid highway and highway safety 
     construction programs (other than the equity bonus program) 
     and for which funds are allocated from the Highway Trust Fund 
     by the Secretary under this title and the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003; 
     bears to'';
       (3) in subsection (c), by inserting ``the highway safety 
     improvement program,'' after ``the surface transportation 
     program,''; and
       (4) by striking subsections (e), (f), and (g).

                        Subtitle B--New Programs

     SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE 
                   PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code, is amended by inserting after section 138 
     the following:

     ``Sec. 139. Infrastructure performance and maintenance 
       program

       ``(a) Establishment.--The Secretary shall establish and 
     implement an infrastructure performance and maintenance 
     program in accordance with this section.
       ``(b) Eligible Projects.--
       ``(1) In general.--A State may obligate funds allocated to 
     the State under this section only for projects eligible under 
     the Interstate maintenance program under section 119, the 
     National Highway System program under section 103, the 
     surface transportation program under section 133, the highway 
     safety improvement program under section 148, the highway 
     bridge replacement and rehabilitation program under section 
     144, and the congestion mitigation and air quality 
     improvement program under section 149 that will--
       ``(A) preserve, maintain, or otherwise extend, in a cost-
     effective manner, the useful life of existing highway 
     infrastructure elements; or
       ``(B) provide operational improvements (including traffic 
     management and intelligent transportation system strategies 
     and limited capacity enhancements) at points of recurring 
     highway congestion.
       ``(2) Set-aside.--Notwithstanding any other provision of 
     law, of the amounts made available under section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, $439,000,000 shall be 
     available for obligation to carry out this section without 
     further appropriation.
       ``(c) Period of Availability.--
       ``(1) Obligation within 180 days.--
       ``(A) In general.--Funds allocated to a State under this 
     section shall be obligated by the State not later than 180 
     days after the date of apportionment.
       ``(B) Unobligated funds.--Any amounts that remain 
     unobligated at the end of that period shall be allocated in 
     accordance with subsection (d).
       ``(2) Obligation by end of fiscal year.--
       ``(A) In general.--All funds allocated or reallocated under 
     this section shall remain available for obligation until the 
     last day of the fiscal year for which the funds are 
     apportioned.
       ``(B) Unobligated funds.--Any amounts allocated that remain 
     unobligated at the end of the fiscal year shall lapse.

[[Page 817]]

       ``(d) Redistribution of Allocated Funds and Obligation 
     Authority.--
       ``(1) In general.--On the date that is 180 days after the 
     date of allocation, or as soon thereafter as practicable, for 
     each fiscal year, the Secretary shall--
       ``(A) withdraw--
       ``(i) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(ii) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(a)(14) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003; and
       ``(B) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(i) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(ii) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(2) Equity bonus.--The calculation and distribution of 
     funds under section 105 shall be adjusted as a result of the 
     allocation of funds under this subsection.
       ``(e) Federal Share Payable.--The Federal share payable for 
     a project funded under this section shall be determined in 
     accordance with section 120.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by adding after the 
     item relating to section 138 the following:

``139. Infrastructure performance and maintenance program.''.

     SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

       (a) Declaration of Policy.--Section 101 of title 23, United 
     States Code, is amended--
       (1) by striking ``(b) It is hereby declared to be'' and 
     inserting the following:
       ``(b) Declaration of Policy.--
       ``(1) Acceleration of construction of federal-aid highway 
     systems.--Congress declares that it is'';
       (2) in the second paragraph, by striking ``It is hereby 
     declared'' and inserting the following:
       ``(2) Completion of interstate system.--Congress 
     declares''; and
       (3) by striking the last paragraph and inserting the 
     following:
       ``(3) Transportation needs of 21st century.--Congress 
     declares that--
       ``(A) it is in the national interest to preserve and 
     enhance the surface transportation system to meet the needs 
     of the United States for the 21st Century;
       ``(B) the current urban and long distance personal travel 
     and freight movement demands have surpassed the original 
     forecasts and travel demand patterns are expected to change;
       ``(C) continued planning for and investment in surface 
     transportation is critical to ensure the surface 
     transportation system adequately meets the changing travel 
     demands of the future;
       ``(D) among the foremost needs that the surface 
     transportation system must meet to provide for a strong and 
     vigorous national economy are safe, efficient, and reliable--
       ``(i) national and interregional personal mobility 
     (including personal mobility in rural and urban areas) and 
     reduced congestion;
       ``(ii) flow of interstate and international commerce and 
     freight transportation; and
       ``(iii) travel movements essential for national security;
       ``(E) special emphasis should be devoted to providing safe 
     and efficient access for the type and size of commercial and 
     military vehicles that access designated National Highway 
     System intermodal freight terminals;
       ``(F) it is in the national interest to seek ways to 
     eliminate barriers to transportation investment created by 
     the current modal structure of transportation financing;
       ``(G) the connection between land use and infrastructure is 
     significant;
       ``(H) transportation should play a significant role in 
     promoting economic growth, improving the environment, and 
     sustaining the quality of life; and
       ``(I) the Secretary should take appropriate actions to 
     preserve and enhance the Interstate System to meet the needs 
     of the 21st Century.''.
       (b) National Surface Transportation System Study.--
       (1) In general.--The Secretary shall--
       (A) conduct a complete investigation and study of the 
     current condition and future needs of the surface 
     transportation system of the United States, including--
       (i) the National Highway System;
       (ii) the Interstate System;
       (iii) the strategic highway network;
       (iv) congressional high priority corridors;
       (v) intermodal connectors;
       (vi) freight facilities;
       (vii) navigable waterways;
       (viii) mass transportation;
       (ix) freight and intercity passenger rail infrastructure 
     and facilities; and
       (x) surface access to airports; and
       (B) develop a conceptual plan, with alternative approaches, 
     for the future to ensure that the surface transportation 
     system will continue to serve the needs of the United States, 
     including specific recommendations regarding design and 
     operational standards, Federal policies, and legislative 
     changes.
       (2) Specific issues.--In conducting the investigation and 
     study, the Secretary shall specifically address--
       (A) the current condition and performance of the Interstate 
     System (including the physical condition of bridges and 
     pavements and operational characteristics and performance), 
     relying primarily on existing data sources;
       (B) the future of the Interstate System, based on a range 
     of legislative and policy approaches for 15-, 30-, and 50-
     year time periods;
       (C) the expected demographics and business uses that impact 
     the surface transportation system;
       (D) the expected use of the surface transportation system, 
     including the effects of changing vehicle types, modes of 
     transportation, fleet size and weights, and traffic volumes;
       (E) desirable design policies and standards for future 
     improvements of the surface transportation system, including 
     additional access points;
       (F) the identification of urban, rural, national, and 
     interregional needs for the surface transportation system;
       (G) the potential for expansion, upgrades, or other changes 
     to the surface transportation system, including--
       (i) deployment of advanced materials and intelligent 
     technologies;
       (ii) critical multistate, urban, and rural corridors 
     needing capacity, safety, and operational enhancements;
       (iii) improvements to intermodal linkages;
       (iv) security and military deployment enhancements;
       (v) strategies to enhance asset preservation; and
       (vi) implementation strategies;
       (H) the improvement of emergency preparedness and 
     evacuation using the surface transportation system, 
     including--
       (i) examination of the potential use of all modes of the 
     surface transportation system in the safe and efficient 
     evacuation of citizens during times of emergency;
       (ii) identification of the location of critical 
     bottlenecks; and
       (iii) development of strategies to improve system 
     redundancy, especially in areas with a high potential for 
     terrorist attacks;
       (I) alternatives for addressing environmental concerns in 
     recommended alternatives;
       (J) the evaluation and assessment of the current and future 
     capabilities for conducting system-wide real-time performance 
     data collection and analysis, traffic monitoring, and system 
     operations and management; and
       (K) a range of policy and legislative alternatives for 
     addressing future needs for the surface transportation 
     system, including funding needs and potential approaches to 
     provide funds.
       (3) Technical advisory committee.--The Secretary shall 
     establish a technical advisory committee, in a manner 
     consistent with the Federal Advisory Committee Act (5 U.S.C. 
     App.), to collect and evaluate technical input from--
       (A) the Department of Defense;
       (B) appropriate Federal, State, and local officials with 
     responsibility for transportation;
       (C) appropriate State and local elected officials;
       (D) transportation and trade associations;
       (E) emergency management officials;
       (F) freight providers;
       (G) the general public; and
       (H) other entities and persons determined appropriate by 
     the Secretary to ensure a diverse range of views.
       (4) Report.--Not later than 4 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives, and make readily available to the 
     public, a report on the results of the investigation and 
     study conducted under this subsection.

     SEC. 1203. FREIGHT TRANSPORTATION GATEWAYS; FREIGHT 
                   INTERMODAL CONNECTIONS.

       (a) Freight Transportation Gateways.--Chapter 3 of title 
     23, United States Code, is amended by adding at the end the 
     following:

     ``Sec. 325. Freight transportation gateways

       ``(a) In General.--
       ``(1) Establishment.--The Secretary shall establish a 
     freight transportation gateways program to improve 
     productivity, security, and safety of freight transportation 
     gateways, while mitigating congestion and community impacts 
     in the area of the gateways.
       ``(2) Purposes.--The purposes of the freight transportation 
     gateways program shall be--
       ``(A) to facilitate and support multimodal freight 
     transportation initiatives at the State and local levels in 
     order to improve freight transportation gateways and mitigate 
     the impact of congestion on the environment in the area of 
     the gateways;
       ``(B) to provide capital funding to address infrastructure 
     and freight operational needs at freight transportation 
     gateways;
       ``(C) to encourage adoption of new financing strategies to 
     leverage State, local, and private investment in freight 
     transportation gateways;
       ``(D) to facilitate access to intermodal freight transfer 
     facilities; and
       ``(E) to increase economic efficiency by facilitating the 
     movement of goods.
       ``(b) State Responsibilities.--
       ``(1) Project development process.--Each State, in 
     coordination with metropolitan planning organizations, shall 
     ensure that intermodal freight transportation, trade 
     facilitation, and economic development needs are adequately 
     considered and fully integrated into the project development 
     process, including transportation planning through final 
     design and construction of freight-related transportation 
     projects.
       ``(2) Freight transportation coordinator.--

[[Page 818]]

       ``(A) In general.--Each State shall designate a freight 
     transportation coordinator.
       ``(B) Duties.--The coordinator shall--
       ``(i) foster public and private sector collaboration needed 
     to implement complex solutions to freight transportation and 
     freight transportation gateway problems, including--

       ``(I) coordination of metropolitan and statewide 
     transportation activities with trade and economic interests;
       ``(II) coordination with other States, agencies, and 
     organizations to find regional solutions to freight 
     transportation problems; and
       ``(III) coordination with local officials of the Department 
     of Defense and the Department of Homeland Security, and with 
     other organizations, to develop regional solutions to 
     military and homeland security transportation needs; and

       ``(ii) promote programs that build professional capacity to 
     better plan, coordinate, integrate, and understand freight 
     transportation needs for the State.
       ``(c) Innovative Finance Strategies.--
       ``(1) In general.--States and localities are encouraged to 
     adopt innovative financing strategies for freight 
     transportation gateway improvements, including--
       ``(A) new user fees;
       ``(B) modifications to existing user fees, including trade 
     facilitation charges;
       ``(C) revenue options that incorporate private sector 
     investment; and
       ``(D) a blending of Federal-aid and innovative finance 
     programs.
       ``(2) Technical assistance.--The Secretary shall provide 
     technical assistance to States and localities with respect to 
     the strategies.
       ``(d) Intermodal Freight Transportation Projects.--
       ``(1) Use of surface transportation program funds.--A State 
     may obligate funds apportioned to the State under section 
     104(b)(3) for publicly-owned intermodal freight 
     transportation projects that provide community and highway 
     benefits by addressing economic, congestion, system 
     reliability, security, safety, or environmental issues 
     associated with freight transportation gateways.
       ``(2) Eligible projects.--A project eligible for funding 
     under this section--
       ``(A) may include publicly-owned intermodal freight 
     transfer facilities, access to the facilities, and 
     operational improvements for the facilities (including 
     capital investment for intelligent transportation systems), 
     except that projects located within the boundaries of port 
     terminals shall only include the surface transportation 
     infrastructure modifications necessary to facilitate direct 
     intermodal interchange, transfer, and access into and out of 
     the port; and
       ``(B) may involve the combining of private and public 
     funds.''.
       (b) Eligibility for Surface Transportation Program Funds.--
     Section 133(b) of title 23, United States Code, is amended by 
     inserting after paragraph (11) the following:
       ``(12) Intermodal freight transportation projects in 
     accordance with section 325(d)(2).''.
       (c) Freight Intermodal Connections to NHS.--Section 103(b) 
     of title 23, United States Code, is amended by adding at the 
     end the following:
       ``(7) Freight intermodal connections to the nhs.--
       ``(A) Funding set-aside.--Of the funds apportioned to a 
     State for each fiscal year under section 104(b)(1), an amount 
     determined in accordance with subparagraph (B) shall only be 
     available to the State to be obligated for projects on--
       ``(i) National Highway System routes connecting to 
     intermodal freight terminals identified according to criteria 
     specified in the report to Congress entitled `Pulling 
     Together: The National Highway System and its Connections to 
     Major Intermodal Terminals' dated May 24, 1996, referred to 
     in paragraph (1), and any modifications to the connections 
     that are consistent with paragraph (4);
       ``(ii) strategic highway network connectors to strategic 
     military deployment ports; and
       ``(iii) projects to eliminate railroad crossings or make 
     railroad crossing improvements.
       ``(B) Determination of amount.--The amount of funds for 
     each State for a fiscal year that shall be set aside under 
     subparagraph (A) shall be equal to the greater of--
       ``(i) the product obtained by multiplying--

       ``(I) the total amount of funds apportioned to the State 
     under section 104(b)(1); by
       ``(II) the percentage of miles that routes specified in 
     subparagraph (A) constitute of the total miles on the 
     National Highway System in the State; or

       ``(ii) 2 percent of the annual apportionment to the State 
     of funds under 104(b)(1).
       ``(C) Exemption from set-aside.--For any fiscal year, a 
     State may obligate the funds otherwise set aside by this 
     paragraph for any project that is eligible under paragraph 
     (6) and is located in the State on a segment of the National 
     Highway System specified in paragraph (2), if the State 
     certifies and the Secretary concurs that--
       ``(i) the designated National Highway System intermodal 
     connectors described in subparagraph (A) are in good 
     condition and provide an adequate level of service for 
     military vehicle and civilian commercial vehicle use; and
       ``(ii) significant needs on the designated National Highway 
     System intermodal connectors are being met or do not 
     exist.''.
       (d) Federal Share Payable.--Section 120 of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(m) Increased Federal Share for Connectors.--In the case 
     of a project to support a National Highway System intermodal 
     freight connection or strategic highway network connector to 
     a strategic military deployment port described in section 
     103(b)(7), the Federal share of the total cost of the project 
     shall be 90 percent.''.
       (e) Length Limitations.--Section 31111(e) of title 49, 
     United States Code, is amended--
       (1) by striking ``The'' and inserting the following:
       ``(1) In general.--The''; and
       (2) by adding at the end the following:
       ``(2) Length limitations.--In the interests of economic 
     competitiveness, security, and intermodal connectivity, not 
     later than 3 years after the date of enactment of this 
     paragraph, States shall update the list of Federal-aid system 
     highways to include--
       ``(A) strategic highway network connectors to strategic 
     military deployment ports; and
       ``(B) National Highway System intermodal freight 
     connections serving military and commercial truck traffic 
     going to major intermodal terminals as described in section 
     103(b)(7)(A)(i).''.
       (f) Conforming Amendment.--The analysis of chapter 3 of 
     title 23, United States Code, is amended by adding at the end 
     the following:

``325. Freight transportation gateways.''.

     SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 
                   FACILITIES.

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

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

       ``(a) In General.--The Secretary shall carry out a program 
     for construction of ferry boats and ferry terminal facilities 
     in accordance with section 129(c).
       ``(b) Federal Share.--The Federal share of the cost of 
     construction of ferry boats and ferry terminals under this 
     section shall be 80 percent.
       ``(c) Set Aside for Projects on National Highway System.--
     Before any apportionment is made under section 104(b)(3), the 
     Secretary shall set aside $20,000,000 for each of fiscal 
     years 2004 through 2009, for obligation by the Secretary, 
     for--
       ``(1) the construction or refurbishment of ferry boats and 
     ferry terminal facilities;
       ``(2) the acquisition of zero- or low-emission ferry boats, 
     or projects that advance the ship-building capacities of the 
     United States through the introduction of new technology; and
       ``(3) approaches to facilities described in paragraph (1) 
     located within marine highway systems that are part of the 
     National Highway System.
       ``(d) Funding.--There shall be made available to the 
     Secretary to carry out this section, out of the Highway Trust 
     Fund (other than the Mass Transit Account), for obligation at 
     the discretion of the Secretary and to remain available until 
     expended, $38,000,000 for the period of fiscal years 2004 
     through 2009.''.
       (b) Conforming Amendments.--
       (1) The analysis for subchapter I of chapter 1 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 147 and inserting the following:

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

       (2) Section 1064 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2005) is repealed.

     SEC. 1205. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE 
                   HIGHWAY.

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

                          Subtitle C--Finance

     SEC. 1301. FEDERAL SHARE.

       Section 120 of title 23, United States Code, is amended by 
     striking subsection (d) and inserting the following:
       ``(d) Increased Federal Share.--
       ``(1) In general.--The Federal share payable under 
     subsection (a) or (b) may be increased for projects and 
     activities in each State in which is located--
       ``(A) nontaxable Indian land;
       ``(B) public land (reserved or unreserved);
       ``(C) a national forest; or
       ``(D) a national park and monument.
       ``(2) Amount.--
       ``(A) In general.--The Federal share for States described 
     in paragraph (1) shall be increased by a percentage of the 
     remaining cost that--
       ``(i) is equal to the percentage that--

       ``(I) the area of all land described in paragraph (1) in a 
     State; bears to
       ``(II) the total area of the State; but

       ``(ii) does not exceed 95 percent of the total cost of the 
     project or activity for which the Federal share is provided.
       ``(B) Adjustment.--The Secretary shall adjust the Federal 
     share for States under subparagraph (A) as the Secretary 
     determines necessary, on the basis of data provided by the 
     Federal agencies that are responsible for maintaining the 
     data.
       ``(C) Decreased federal share.--Unless the State 
     voluntarily agrees to a decreased Federal share, the 
     Secretary shall provide the maximum Federal share allowable 
     under subsections (a) and (b), as adjusted by this 
     subsection.''.

[[Page 819]]



     SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

       Section 104 of title 23, United States Code, is amended by 
     striking subsection (k) and inserting the following:
       ``(k) Transfer of Highway and Transit Funds.--
       ``(1) Transfer of highway funds for transit projects.--
       ``(A) In general.--Subject to subparagraph (B), funds made 
     available for transit projects or transportation planning 
     under this title may be transferred to and administered by 
     the Secretary in accordance with chapter 53 of title 49.
       ``(B) Non-federal share.--The provisions of this title 
     relating to the non-Federal share shall apply to the 
     transferred funds.
       ``(2) Transfer of transit funds for highway projects.--
     Funds made available for highway projects or transportation 
     planning under chapter 53 of title 49 may be transferred to 
     and administered by the Secretary in accordance with this 
     title.
       ``(3) Transfer of highway funds to other federal 
     agencies.--
       ``(A) In general.--Except as provided in clauses (i) and 
     (ii) and subparagraph (B), funds made available under this 
     title or any other Act that are derived from Highway Trust 
     Fund (other than the Mass Transit account) may be transferred 
     to another Federal agency if--
       ``(i)(I) an expenditure is specifically authorized in 
     Federal-aid highway legislation or as a line item in an 
     appropriation act; or
       ``(II) a State transportation department consents to the 
     transfer of funds;
       ``(ii) the Secretary determines, after consultation with 
     the State transportation department (as appropriate), that 
     the Federal agency should carry out a project with the funds; 
     and
       ``(iii) the other Federal agency agrees to accept the 
     transfer of funds and to administer the project.
       ``(B) Administration.--
       ``(i) Procedures.--A project carried out with funds 
     transferred to a Federal agency under subparagraph (A) shall 
     be administered by the Federal agency under the procedures of 
     the Federal agency.
       ``(ii) Appropriations.--Funds transferred to a Federal 
     agency under subparagraph (A) shall not be considered an 
     augmentation of the appropriations of the Federal agency.
       ``(iii) Non-federal share.--The provisions of this title, 
     or an Act described in subparagraph (A), relating to the non-
     Federal share shall apply to a project carried out with the 
     transferred funds, unless the Secretary determines that it is 
     in the best interest of the United States that the non-
     Federal share be waived.
       ``(4) Transfer of funds among states or to federal highway 
     administration.--
       ``(A) In general.--Subject to subparagraphs (B) through 
     (D), the Secretary may, at the request of a State, transfer 
     funds apportioned or allocated to the State to another State, 
     or to the Federal Highway Administration, for the purpose of 
     funding 1 or more specific projects.
       ``(B) Administration.--The transferred funds shall be used 
     for the same purpose and in the same manner for which the 
     transferred funds were authorized.
       ``(C) Apportionment.--The transfer shall have no effect on 
     any apportionment formula used to distribute funds to States 
     under this section or section 105 or 144.
       ``(D) Surface transportation program.--Funds that are 
     apportioned or allocated to a State under subsection (b)(3) 
     and attributed to an urbanized area of a State with a 
     population of over 200,000 individuals under section 
     133(d)(2) may be transferred under this paragraph only if the 
     metropolitan planning organization designated for the area 
     concurs, in writing, with the transfer request.
       ``(5) Transfer of obligation authority.--Obligation 
     authority for funds transferred under this subsection shall 
     be transferred in the same manner and amount as the funds for 
     the projects are transferred under this subsection.''.

     SEC. 1303. TRANSPORTATION INFRASTRUCTURE FINANCE AND 
                   INNOVATION ACT AMENDMENTS.

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

       ``(aa) a public freight rail facility or a private facility 
     providing public benefit;
       ``(bb) an intermodal freight transfer facility;
       ``(cc) a means of access to a facility described in item 
     (aa) or (bb);
       ``(dd) a service improvement for a facility described in 
     item (aa) or (bb) (including a capital investment for an 
     intelligent transportation system); or

       ``(II) comprises a series of projects described in 
     subclause (I) with the common objective of improving the flow 
     of goods;
       ``(ii) may involve the combining of private and public 
     sector funds, including investment of public funds in private 
     sector facility improvements; and
       ``(iii) if located within the boundaries of a port 
     terminal, includes only such surface transportation 
     infrastructure modifications as are necessary to facilitate 
     direct intermodal interchange, transfer, and access into and 
     out of the port.''; and
       (4) in paragraph (10) (as redesignated by paragraph (2)) by 
     striking ``bond'' and inserting ``credit''.
       (b) Determination of Eligibility and Project Selection.--
     Section 182 of title 23, United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Inclusion in transportation plans and programs.--The 
     project shall satisfy the applicable planning and programming 
     requirements of sections 134 and 135 at such time as an 
     agreement to make available a Federal credit instrument is 
     entered into under this subchapter.
       ``(2) Application.--A State, local government, public 
     authority, public-private partnership, or any other legal 
     entity undertaking the project and authorized by the 
     Secretary shall submit a project application to the 
     Secretary.'';
       (B) in paragraph (3)(A)--
       (i) in clause (i), by striking ``$100,000,000'' and 
     inserting ``$50,000,000''; and
       (ii) in clause (ii), by striking ``50'' and inserting 
     ``20''; and
       (C) in paragraph (4)--
       (i) by striking ``Project financing'' and inserting ``The 
     Federal credit instrument''; and
       (ii) by inserting before the period at the end the 
     following: ``that also secure the project obligations''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``criteria'' the second 
     place it appears and inserting ``requirements''; and
       (B) in paragraph (2)(B), by inserting ``(which may be the 
     Federal credit instrument)'' after ``obligations''.
       (c) Secured Loans.--Section 183 of title 23, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``of any project selected under section 
     182.'' at the end;
       (ii) in subparagraphs (A) and (B), by inserting ``of any 
     project selected under section 182'' after ``costs'' ; and
       (iii) in subparagraph (B), by striking the semicolon at the 
     end and inserting a period; and
       (B) in paragraph (4)--
       (i) by striking ``funding'' and inserting ``execution''; 
     and
       (ii) by striking ``rating,'' and all that follows and 
     inserting a period;
       (2) in subsection (b)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Maximum amount.--The amount of the secured loan shall 
     not exceed the lesser of--
       ``(A) 33 percent of the reasonably anticipated eligible 
     project costs; or
       ``(B) the amount of the senior project obligations.'';
       (B) in paragraph (3)(A)(i), by inserting ``that also secure 
     the senior project obligations'' after ``sources''; and
       (C) in paragraph (4), by striking ``marketable''; and
       (3) in subsection (c)--
       (A) by striking paragraph (3);
       (B) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively; and
       (C) in paragraph (3) (as redesignated by subparagraph 
     (B))--
       (i) in subparagraph (A), by striking ``during the 10 
     years''; and
       (ii) in subparagraph (B)(ii), by striking ``loan'' and all 
     that follows and inserting ``loan.''.
       (d) Lines of Credit.--Section 184 of title 23, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (3), by striking ``interest, any debt 
     service reserve fund, and any other available reserve'' and 
     inserting ``interest (but not including reasonably required 
     financing reserves)'';
       (B) in paragraph (4), by striking ``marketable United 
     States Treasury securities as of the date on which the line 
     of credit is obligated'' and inserting `` United States 
     Treasury securities as of the date of execution of the line 
     of credit agreement''; and
       (C) in paragraph (5)(A)(i), by inserting ``that also secure 
     the senior project obligations'' after ``sources''; and
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) by striking ``scheduled'';
       (ii) by inserting ``be scheduled to'' after ``shall''; and
       (iii) by striking ``be fully repaid, with interest,'' and 
     inserting ``to conclude, with full repayment of principal and 
     interest,''; and
       (B) by striking paragraph (3).
       (e) Program Administration.--Section 185 of title 23, 
     United States Code, is amended to read as follows:

     ``Sec. 185. Program administration

       ``(a) Requirement.--The Secretary shall establish a uniform 
     system to service the Federal credit instruments made 
     available under this subchapter.
       ``(b) Fees.--The Secretary may establish fees at a level to 
     cover all or a portion of the costs to the Federal government 
     of servicing the Federal credit instruments.
       ``(c) Servicer.--
       ``(1) In general.--The Secretary may appoint a financial 
     entity to assist the Secretary in servicing the Federal 
     credit instruments.
       ``(2) Duties.--The servicer shall act as the agent for the 
     Secretary.
       ``(3) Fee.--The servicer shall receive a servicing fee, 
     subject to approval by the Secretary.

[[Page 820]]

       ``(d) Assistance From Expert Firms.--The Secretary may 
     retain the services of expert firms, including counsel, in 
     the field of municipal and project finance to assist in the 
     underwriting and servicing of Federal credit instruments.''.
       (f) Funding.--Section 188 of title 23, United States Code, 
     is amended to read as follows:

     ``Sec. 188. Funding

       ``(a) Funding.--
       ``(1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this subchapter $130,000,000 for each 
     of fiscal years 2004 through 2009.
       ``(2) Collected fees.--All fees collected under this 
     subchapter shall be made available to the Secretary, without 
     further appropriation, to carry out this subchapter.
       ``(3) Administrative costs.--Of amounts made available 
     under paragraph (1), the Secretary may use for the 
     administration of this subchapter not more than $2,000,000 
     for each of fiscal years 2004 through 2009.
       ``(4) Availability.--Amounts made available under paragraph 
     (1) shall remain available until expended.
       ``(b) Contract Authority.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, approval by the Secretary of a Federal credit instrument 
     that uses funds made available under this subchapter shall be 
     deemed to be acceptance by the United States of a contractual 
     obligation to fund the Federal credit investment.
       ``(2) Availability.--Amounts authorized under this section 
     for a fiscal year shall be available for obligation on 
     October 1 of the fiscal year.''.
       (g) Repeal.--Section 189 of title 23, United States code, 
     is repealed.
       (h) Conforming Amendments.--The analysis for chapter 1 of 
     title 23, United States Code, is amended--
       (1) by striking the item relating to section 185 and 
     inserting the following:

``185. Program administration.'';

     and

       (2) by striking the item relating to section 189.

     SEC. 1304. FACILITATION OF INTERNATIONAL REGISTRATION PLANS 
                   AND INTERNATIONAL FUEL TAX AGREEMENTS.

       (a) In General.--Chapter 317 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 31708. Facilitation of international registration 
       plans and international fuel tax agreements

       ``The Secretary may provide assistance to any State that is 
     participating in the International Registration Plan and 
     International Fuel Tax Agreement, as provided in sections 
     31704 and 31705, respectively, and that serves as a base 
     jurisdiction for motor carriers that are domiciled in Mexico, 
     to assist the State with administrative costs resulting from 
     serving as a base jurisdiction for motor carriers from 
     Mexico.''.
       (b) Conforming Amendment.--The analysis for chapter 317 of 
     title 49, United States Code, is amended by adding at the end 
     the following:

``31708. Facilitation of international registration plans and 
              international fuel tax agreements.''.

     SEC. 1305. NATIONAL COMMISSION ON FUTURE REVENUE SOURCES TO 
                   SUPPORT THE HIGHWAY TRUST FUND AND FINANCE THE 
                   NEEDS OF THE SURFACE TRANSPORTATION SYSTEM.

       (a) Establishment.--There is established a commission to be 
     known as the ``National Commission on Future Revenue Sources 
     to Support the Highway Trust Fund and Finance the Needs of 
     the Surface Transportation System'' (referred to in this 
     section as the ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 11 
     members, of whom--
       (A) 3 members shall be appointed by the President;
       (B) 2 members shall be appointed by the Speaker of the 
     House of Representatives;
       (C) 2 members shall be appointed by the minority leader of 
     the House of Representatives;
       (D) 2 members shall be appointed by the majority leader of 
     the Senate; and
       (E) 2 members shall be appointed by the minority leader of 
     the Senate.
       (2) Qualifications.--Members appointed under paragraph (1) 
     shall have experience in or represent the interests of--
       (A) public finance, including experience in developing 
     State and local revenue resources;
       (B) surface transportation program administration;
       (C) organizations that use surface transportation 
     facilities;
       (D) academic research into related issues; or
       (E) other activities that provide unique perspectives on 
     current and future requirements for revenue sources to 
     support the Highway Trust Fund.
       (3) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 120 days after 
     the date of establishment of the Commission.
       (4) Terms.--A member shall be appointed for the life of the 
     Commission.
       (5) Vacancies.--A vacancy on the Commission--
       (A) shall not affect the powers of the Commission; and
       (B) shall be filled in the same manner as the original 
     appointment was made.
       (6) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (7) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (8) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (9) Chairperson and vice chairperson.--The Commission shall 
     select a Chairperson and Vice Chairperson from among the 
     members of the Commission.
       (c) Duties.--
       (1) In general.--The Commission shall--
       (A) conduct a comprehensive study of alternatives to 
     replace or to supplement the fuel tax as the principal 
     revenue source to support the Highway Trust Fund and suggest 
     new or alternative sources of revenue to fund the needs of 
     the surface transportation system over at least the next 30 
     years;
       (B) conduct the study in a manner that builds on--
       (i) findings, conclusions, and recommendations of the 
     recent study conducted by the Transportation Research Board 
     on alternatives to the fuel tax to support highway program 
     financing; and
       (ii) other relevant prior research;
       (C) consult with the Secretary and the Secretary of the 
     Treasury in conducting the study to ensure that the views of 
     the Secretaries concerning essential attributes of Highway 
     Trust Fund revenue alternatives are considered;
       (D) consult with representatives of State Departments of 
     Transportation and metropolitan planning organizations and 
     other key interested stakeholders in conducting the study to 
     ensure that--
       (i) the views of the stakeholders on alternative revenue 
     sources to support State transportation improvement programs 
     are considered; and
       (ii) any recommended Federal financing strategy takes into 
     account State financial requirements; and
       (E) based on the study, make specific recommendations 
     regarding--
       (i) actions that should be taken to develop alternative 
     revenue sources to support the Highway Trust Fund; and
       (ii) the time frame for taking those actions.
       (2) Specific matters.--The study shall address 
     specifically--
       (A) the advantages and disadvantages of alternative revenue 
     sources to meet anticipated Federal surface transportation 
     financial requirements;
       (B) recommendations concerning the most promising revenue 
     sources to support long-term Federal surface transportation 
     financing requirements;
       (C) development of a broad transition strategy to move from 
     the current tax base to new funding mechanisms, including the 
     time frame for various components of the transition strategy;
       (D) recommendations for additional research that may be 
     needed to implement recommended alternatives; and
       (E) the extent to which revenues should reflect the 
     relative use of the highway system.
       (3) Related work.--To the maximum extent practicable, the 
     study shall build on related work that has been done by--
       (A) the Secretary of Transportation;
       (B) the Secretary of Energy;
       (C) the Transportation Research Board; and
       (D) other entities and persons.
       (4) Factors.--In developing recommendations under this 
     subsection, the Commission shall consider--
       (A) the ability to generate sufficient revenues from all 
     modes to meet anticipated long-term surface transportation 
     financing needs;
       (B) the roles of the various levels of government and the 
     private sector in meeting future surface transportation 
     financing needs;
       (C) administrative costs (including enforcement costs) to 
     implement each option;
       (D) the expected increase in non-taxed fuels and the impact 
     of taxing those fuels;
       (E) the likely technological advances that could ease 
     implementation of each option;
       (F) the equity and economic efficiency of each option;
       (G) the flexibility of different options to allow various 
     pricing alternatives to be implemented; and
       (H) potential compatibility issues with State and local tax 
     mechanisms under each alternative.
       (5) Report and recommendations.--Not later than September 
     30, 2007, the Commission shall submit to Congress a final 
     report that contains--
       (A) a detailed statement of the findings and conclusions of 
     the Commission; and
       (B) the recommendations of the Commission for such 
     legislation and administrative actions as the Commission 
     considers appropriate.
       (d) Powers.--
       (1) Hearings.--The Commission may hold such hearings, meet 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this section.
       (2) Information from federal agencies.--
       (A) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     necessary to carry out this section.
       (B) Provision of information.--On request of the 
     Chairperson of the Commission, the head of the agency shall 
     provide the information to the Commission.
       (3) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (4) Donations.--The Commission may accept, use, and dispose 
     of donations of services or property.

[[Page 821]]

       (e) Commission Personnel Matters.--
       (1) Members.--A member of the Commission shall serve 
     without pay but shall be allowed travel expenses, including 
     per diem in lieu of subsistence, at rates authorized for an 
     employee of an agency under subchapter I of chapter 57 of 
     title 5, United States Code, while away from the home or 
     regular place of business of the member in the performance of 
     the duties of the Commission.
       (2) Contractor.--The Commission may contract with an 
     appropriate organization, agency, or entity to conduct the 
     study required under this section, under the strategic 
     guidance of the Commission.
       (3) Administrative support.--On the request of the 
     Commission, the Administrator of the Federal Highway 
     Administration shall provide to the Commission, on a 
     reimbursable basis, the administrative support and services 
     necessary for the Commission to carry out the duties of the 
     Commission under this section.
       (4) Detail of department personnel.--
       (A) In general.--On the request of the Commission, the 
     Secretary may detail, on a reimbursable basis, any of the 
     personnel of the Department to the Commission to assist the 
     Commission in carrying out the duties of the Commission under 
     this section.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (5) Cooperation.--The staff of the Secretary shall 
     cooperate with the Commission in the study required under 
     this section, including providing such nonconfidential data 
     and information as are necessary to conduct the study.
       (f) Relationship to Other Laws.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), funds made available to carry out this section shall be 
     available for obligation in the same manner as if the funds 
     were apportioned under chapter 1 of title 23, United States 
     Code.
       (2) Federal share.--The Federal share of the cost of the 
     study and the Commission under this section shall be 100 
     percent.
       (3) Availability.--Funds made available to carry out this 
     section shall remain available until expended.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section 
     $3,000,000 for fiscal year 2004.
       (h) Termination.--
       (1) In general.--The Commission shall terminate on the date 
     that is 180 days after the date on which the Commission 
     submits the report of the Commission under subsection (c)(5).
       (2) Records.--Not later than the termination date for the 
     Commission, all records and papers of the Commission shall be 
     delivered to the Administrator of General Services for 
     deposit in the National Archives.

     SEC. 1306. STATE INFRASTRUCTURE BANKS.

       Section 1511(b)(1)(A) of the Transportation Equity Act for 
     the 21st Century (23 U.S.C. 181 note; 112 Stat. 251) is 
     amended by striking ``Missouri,'' and all that follows 
     through ``for the establishment'' and inserting ``Missouri, 
     Rhode Island, Texas, and any other State that seeks such an 
     agreement for the establishment''.

                           Subtitle D--Safety

     SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

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

     ``Sec. 148. Highway safety improvement program

       ``(a) Definitions.--In this section:
       ``(1) Highway safety improvement program.--The term 
     `highway safety improvement program' means the program 
     carried out under this section.
       ``(2) Highway safety improvement project.--
       ``(A) In general.--The term `highway safety improvement 
     project' means a project described in the State strategic 
     highway safety plan that--
       ``(i) corrects or improves a hazardous road location or 
     feature; or
       ``(ii) addresses a highway safety problem.
       ``(B) Inclusions.--The term `highway safety improvement 
     project' includes a project for--
       ``(i) an intersection safety improvement;
       ``(ii) pavement and shoulder widening (including addition 
     of a passing lane to remedy an unsafe condition);
       ``(iii) installation of rumble strips or another warning 
     device, if the rumble strips or other warning devices do not 
     adversely affect the safety or mobility of bicyclists and 
     pedestrians;
       ``(iv) installation of a skid-resistant surface at an 
     intersection or other location with a high frequency of 
     accidents;
       ``(v) an improvement for pedestrian or bicyclist safety;
       ``(vi)(I) construction of any project for the elimination 
     of hazards at a railway-highway crossing that is eligible for 
     funding under section 130, including the separation or 
     protection of grades at railway-highway crossings;
       ``(II) construction of a railway-highway crossing safety 
     feature; or
       ``(III) the conduct of a model traffic enforcement activity 
     at a railway-highway crossing;
       ``(vii) construction of a traffic calming feature;
       ``(viii) elimination of a roadside obstacle;
       ``(ix) improvement of highway signage and pavement 
     markings;
       ``(x) installation of a priority control system for 
     emergency vehicles at signalized intersections;
       ``(xi) installation of a traffic control or other warning 
     device at a location with high accident potential;
       ``(xii) safety-conscious planning;
       ``(xiii) improvement in the collection and analysis of 
     crash data;
       ``(xiv) planning, equipment, operational activities, or 
     traffic enforcement activities (including police assistance) 
     relating to workzone safety;
       ``(xv) installation of guardrails, barriers (including 
     barriers between construction work zones and traffic lanes 
     for the safety of motorists and workers), and crash 
     attenuators;
       ``(xvi) the addition or retrofitting of structures or other 
     measures to eliminate or reduce accidents involving vehicles 
     and wildlife; or
       ``(xvii) installation and maintenance of signs (including 
     fluorescent, yellow-green signs) at pedestrian-bicycle 
     crossings and in school zones.
       ``(3) Safety project under any other section.--
       ``(A) In general.--The term `safety project under any other 
     section' means a project carried out for the purpose of 
     safety under any other section of this title.
       ``(B) Inclusion.--The term `safety project under any other 
     section' includes a project to--
       ``(i) promote the awareness of the public and educate the 
     public concerning highway safety matters; or
       ``(ii) enforce highway safety laws.
       ``(4) State highway safety improvement program.--The term 
     `State highway safety improvement program' means projects or 
     strategies included in the State strategic highway safety 
     plan carried out as part of the State transportation 
     improvement program under section 135(f).
       ``(5) State strategic highway safety plan.--The term `State 
     strategic highway safety plan' means a plan developed by the 
     State transportation department that--
       ``(A) is developed after consultation with--
       ``(i) a highway safety representative of the Governor of 
     the State;
       ``(ii) regional transportation planning organizations, if 
     any;
       ``(iii) representatives of major modes of transportation;
       ``(iv) local traffic enforcement officials;
       ``(v) persons responsible for administering section 130 at 
     the State level;
       ``(vi) representatives conducting Operation Lifesaver;
       ``(vii) representatives conducting a motor carrier safety 
     program under section 31104 or 31107 of title 49;
       ``(viii) motor vehicle administration agencies; and
       ``(ix) other major State and local safety stakeholders;
       ``(B) analyzes and makes effective use of State, regional, 
     or local crash data;
       ``(C) addresses engineering, management, operation, 
     education, enforcement, and emergency services elements of 
     highway safety as key factors in evaluating highway projects;
       ``(D) considers safety needs of, and high-fatality segments 
     of, public roads;
       ``(E) considers the results of State, regional, or local 
     transportation and highway safety planning processes in 
     existence as of the date of enactment of this section;
       ``(F) describes a program of projects or strategies to 
     reduce or eliminate safety hazards;
       ``(G) is approved by the Governor of the State or a 
     responsible State agency; and
       ``(H) is consistent with the requirements of section 
     135(f).
       ``(b) Program.--
       ``(1) In general.--The Secretary shall carry out a highway 
     safety improvement program.
       ``(2) Purpose.--The purpose of the highway safety 
     improvement program shall be to achieve a significant 
     reduction in traffic fatalities and serious injuries on 
     public roads.
       ``(c) Eligibility.--
       ``(1) In general.--To receive funds under this section, a 
     State shall have in effect a State highway safety improvement 
     program under which the State--
       ``(A) develops and implements a State strategic highway 
     safety plan that identifies and analyzes highway safety 
     problems and opportunities as provided in paragraph (2);
       ``(B) produces a program of projects or strategies to 
     reduce identified safety problems; and
       ``(C) evaluates the plan on a regular basis to ensure the 
     accuracy of the data and priority of proposed improvements.
       ``(2) Identification and analysis of highway safety 
     problems and opportunities.--As part of the State strategic 
     highway safety plan, a State shall--
       ``(A) have in place a crash data system with the ability to 
     perform safety problem identification and countermeasure 
     analysis;
       ``(B) based on the analysis required by subparagraph (A), 
     identify hazardous locations, sections, and elements 
     (including roadside obstacles, railway-highway crossing 
     needs, and unmarked or poorly marked roads) that constitute a 
     danger to motorists, bicyclists, pedestrians, and other 
     highway users;
       ``(C) adopt strategic and performance-based goals that--
       ``(i) address traffic safety, including behavioral and 
     infrastructure problems and opportunities on all public 
     roads;
       ``(ii) focus resources on areas of greatest need; and
       ``(iii) are coordinated with other State highway safety 
     programs;
       ``(D) advance the capabilities of the State for traffic 
     records data collection, analysis, and integration with other 
     sources of safety data (such as road inventories) in a manner 
     that--

[[Page 822]]

       ``(i) complements the State highway safety program under 
     chapter 4 and the commercial vehicle safety plan under 
     section 31102 of title 49;
       ``(ii) includes all public roads; and
       ``(iii) identifies hazardous locations, sections, and 
     elements on public roads that constitute a danger to 
     motorists, bicyclists, and pedestrians;
       ``(E)(i) determine priorities for the correction of 
     hazardous road locations, sections, and elements (including 
     railway-highway crossing improvements), as identified through 
     crash data analysis;
       ``(ii) identify opportunities for preventing the 
     development of such hazardous conditions; and
       ``(iii) establish and implement a schedule of highway 
     safety improvement projects for hazard correction and hazard 
     prevention; and
       ``(F)(i) establish an evaluation process to analyze and 
     assess results achieved by highway safety improvement 
     projects carried out in accordance with procedures and 
     criteria established by this section; and
       ``(ii) use the information obtained under clause (i) in 
     setting priorities for highway safety improvement projects.
       ``(d) Eligible Projects.--
       ``(1) In general.--A State may obligate funds apportioned 
     to the State under this section to carry out--
       ``(A) any highway safety improvement project on any public 
     road or publicly owned bicycle or pedestrian pathway or 
     trail; or
       ``(B) as provided in subsection (e), for other safety 
     projects.
       ``(2) Use of other funding for safety.--
       ``(A) Effect of section.--Nothing in this section prohibits 
     the use of funds made available under other provisions of 
     this title for highway safety improvement projects.
       ``(B) Use of other funds.--States are encouraged to address 
     the full scope of their safety needs and opportunities by 
     using funds made available under other provisions of this 
     title (except a provision that specifically prohibits that 
     use).
       ``(e) Flexible Funding for States With a Strategic Highway 
     Safety Plan.--
       ``(1) In general.--To further the implementation of a State 
     strategic highway safety plan, a State may use up to 25 
     percent of the amount of funds made available under this 
     section for a fiscal year to carry out safety projects under 
     any other section as provided in the State strategic highway 
     safety plan.
       ``(2) Other transportation and highway safety plans.--
     Nothing in this subsection requires a State to revise any 
     State process, plan, or program in effect on the date of 
     enactment of this section.
       ``(f) Reports.--
       ``(1) In general.--A State shall submit to the Secretary a 
     report that--
       ``(A) describes progress being made to implement highway 
     safety improvement projects under this section;
       ``(B) assesses the effectiveness of those improvements; and
       ``(C) describes the extent to which the improvements funded 
     under this section contribute to the goals of--
       ``(i) reducing the number of fatalities on roadways;
       ``(ii) reducing the number of roadway-related injuries;
       ``(iii) reducing the occurrences of roadway-related 
     accidents;
       ``(iv) mitigating the consequences of roadway-related 
     accidents; and
       ``(v) reducing the occurrences of roadway-railroad grade 
     crossing accidents.
       ``(2) Contents; schedule.--The Secretary shall establish 
     the content and schedule for a report under paragraph (1).
       ``(g) Federal Share of Highway Safety Improvement 
     Projects.--The Federal share of the cost of a highway safety 
     improvement project carried out with funds made available 
     under this section shall be 90 percent.''.
       (2) Allocations of apportioned funds.--Section 133(d) of 
     title 23, United States Code, is amended--
       (A) by striking paragraph (1);
       (B) by redesignating paragraphs (2) through (5) as 
     paragraphs (1) through (4), respectively;
       (C) in paragraph (2) (as redesignated by subparagraph 
     (B))--
       (i) in the first sentence of subparagraph (A)--

       (I) by striking ``subparagraphs (C) and (D)'' and inserting 
     ``subparagraph (C)''; and
       (II) by striking ``80 percent'' and inserting ``90 
     percent'';

       (ii) by striking subparagraph (C);
       (iii) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively; and
       (iv) in subparagraph (C) (as redesignated by clause (iii)), 
     by adding a period at the end; and
       (D) in paragraph (4)(A) (as redesignated by subparagraph 
     (B)), by striking ``paragraph (2)'' and inserting ``paragraph 
     (1)''.
       (3) Conforming amendments.--
       (A) The analysis for chapter 1 of title 23, United States 
     Code, is amended by striking the item relating to section 148 
     and inserting the following:

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

       (B) Sections 154, 164, and 409 of title 23, United States 
     Code, are amended by striking ``152'' each place it appears 
     and inserting ``148''.
       (b) Apportionment of Highway Safety Improvement Program 
     Funds.--Section 104(b) of title 23, United States Code, is 
     amended--
       (1) in the matter preceding paragraph (1), by inserting 
     after ``Improvement program,'' the following: ``the highway 
     safety improvement program,''; and
       (2) by adding at the end the following:
       ``(5) Highway safety improvement program.--
       ``(A) In general.--For the highway safety improvement 
     program, in accordance with the following formula:
       ``(i) 25 percent of the apportionments in the ratio that--

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

       ``(ii) 40 percent of the apportionments in the ratio that--

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

       ``(iii) 35 percent of the apportionments in the ratio 
     that--

       ``(I) the estimated tax payments attributable to highway 
     users in each State paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available; bears to
       ``(II) the estimated tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the latest fiscal year for 
     which data are available.

       ``(B) Minimum apportionment.--Notwithstanding subparagraph 
     (A), each State shall receive a minimum of \1/2\ of 1 percent 
     of the funds apportioned under this paragraph.''.
       (c) Elimination of Hazards Relating to Highway 
     Facilities.--
       (1) Funds for protective devices.--Section 130(e) of title 
     23, United States Code, is amended--
       (A) in the heading, by striking ``Protective Devices'' and 
     inserting ``Railway-Highway Crossings'';
       (B) by striking the first sentence and inserting the 
     following:
       ``(1) In general.--For each fiscal year, at least 
     $200,000,000 of the funds authorized and expended under 
     section 148 shall be available for the elimination of hazards 
     and the installation of protective devices at railway-highway 
     crossings.''; and
       (C) by striking ``Sums authorized'' and inserting the 
     following:
       ``(2) Obligation.--Sums authorized''.
       (2) Biennial reports to congress.--Section 130(g) of title 
     23, United States Code, is amended in the third sentence--
       (A) by inserting ``and the Committee on Commerce, Science, 
     and Transportation,'' after ``Public Works''; and
       (B) by striking ``not later than April 1 of each year'' and 
     inserting ``every other year''.
       (3) Expenditure of funds; apportionment.--Section 130 of 
     title 23, United States Code, is amended by adding at the end 
     the following:
       ``(k) Expenditure of Funds; Apportionment.--Funds made 
     available to carry out this section shall be--
       ``(1) available for expenditure on compilation and analysis 
     of data in support of activities carried out under subsection 
     (g); and
       ``(2) apportioned in accordance with section 104(b)(5).''.
       (d) Transition.--
       (1) Implementation.--Except as provided in paragraph (2), 
     to qualify for funding under section 148 of title 23, United 
     States Code (as amended by subsection (a)), a State shall 
     develop and implement a State strategic highway safety plan 
     as required by subsection (c) of that section not later than 
     October 1 of the second fiscal year after the date of 
     enactment of this Act.
       (2) Interim period.--
       (A) In general.--Before October 1 of the second fiscal year 
     after the date of enactment of this Act and until the date on 
     which a State develops and implements a State strategic 
     highway safety plan, the Secretary shall apportion funds to a 
     State for the highway safety improvement program and the 
     State may obligate funds apportioned to the State for the 
     highway safety improvement program under section 148 for 
     projects that were eligible for funding under sections 130 
     and 152 of that title, as in effect on the day before the 
     date of enactment of this Act.
       (B) No strategic highway safety plan.--If a State has not 
     developed a strategic highway safety plan by October 1 of the 
     second fiscal year after the date of enactment of this Act, 
     but demonstrates to the satisfaction of the Secretary that 
     progress is being made toward developing and implementing 
     such a plan, the Secretary shall continue to apportion funds 
     for 1 additional fiscal year for the highway safety 
     improvement program under section 148 of title 23, United 
     States Code, to the State, and the State may continue to 
     obligate funds apportioned to the State under this section 
     for projects that were eligible for funding under sections 
     130 and 152 of that title, as in effect on the day before the 
     date of enactment of this Act.
       (C) Penalty.--If a State has not adopted a strategic 
     highway safety plan by the date that is 2 years after the 
     date of enactment of this Act, funds made available to the 
     State under section 1101(6) shall be redistributed to other 
     States in accordance with section 104(b) of title 23, United 
     States Code.

     SEC. 1402. OPERATION LIFESAVER.

       Section 104(d)(1) of title 23, United States Code, is 
     amended--
       (1) by striking ``subsection (b)(3)'' and inserting 
     ``subsection (b)(5)''; and
       (2) by striking ``$500,000'' and inserting ``$600,000''.

     SEC. 1403. LICENSE SUSPENSION.

       Section 164(a) of title 23, United States Code, is amended 
     by striking paragraph (3) and inserting the following:

[[Page 823]]

       ``(3) License suspension.--The term `license suspension' 
     means--
       ``(A) the suspension of all driving privileges of an 
     individual for the duration of the suspension period; or
       ``(B) a combination of suspension of all driving privileges 
     of an individual for the first 90 days of the suspension 
     period, followed by reinstatement of limited driving 
     privileges requiring the individual to operate only motor 
     vehicles equipped with an ignition interlock system or other 
     device approved by the Secretary during the remainder of the 
     suspension period.''.

     SEC. 1404. BUS AXLE WEIGHT EXEMPTION.

       Section 1023 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (23 U.S.C. 127 note; 105 Stat. 1951) 
     is amended by striking subsection (h) and inserting the 
     following:
       ``(h) Over-the-Road Bus and Public Transit Vehicle 
     Exemption.--
       ``(1) In general.--The second sentence of section 127 of 
     title 23, United States Code (relating to axle weight 
     limitations for vehicles using the Dwight D. Eisenhower 
     System of Interstate and Defense Highways), shall not apply 
     to--
       ``(A) any over-the-road bus (as defined in section 301 of 
     the Americans With Disabilities Act of 1990 (42 U.S.C. 
     12181)); or
       ``(B) any vehicle that is regularly and exclusively used as 
     an intrastate public agency transit passenger bus.
       ``(2) State action.--No State or political subdivision of a 
     State, or any political authority of 2 or more States, shall 
     impose any axle weight limitation on any vehicle described in 
     paragraph (1) in any case in which such a vehicle is using 
     the Dwight D. Eisenhower System of Interstate and Defense 
     Highways.''.

     SEC. 1405. SAFE ROUTES TO SCHOOLS PROGRAM.

       (a) In General.--Subchapter I of chapter I of title 23, 
     United States Code, is amended by inserting after section 149 
     the following:

     ``Sec. 150. Safe routes to schools program

       ``(a) Definitions.--In this section:
       ``(1) Primary and secondary school.--The term `primary and 
     secondary school' means a school that provides education to 
     children in any of grades kindergarten through 12.
       ``(2) Program.--The term `program' means the safe routes to 
     schools program established under subsection (b).
       ``(3) Vicinity of a school.--The term `vicinity of a 
     school' means the area within 2 miles of a primary or 
     secondary school.
       ``(b) Establishment.--The Secretary shall establish and 
     carry out a safe routes to school program for the benefit of 
     children in primary and secondary schools in accordance with 
     this section.
       ``(c) Purposes.--The purposes of the program shall be--
       ``(1) to enable and to encourage children to walk and 
     bicycle to school;
       ``(2) to encourage a healthy and active lifestyle by making 
     walking and bicycling to school safer and more appealing 
     transportation alternatives; and
       ``(3) to facilitate the planning, development, and 
     implementation of projects and activities that will improve 
     safety in the vicinity of schools.
       ``(d) Eligible Recipients.--A State shall use amounts 
     apportioned under this section to provide financial 
     assistance to State, regional, and local agencies that 
     demonstrate an ability to meet the requirements of this 
     section.
       ``(e) Eligible Projects and Activities.--
       ``(1) Infrastructure-related projects.--
       ``(A) In general.--Amounts apportioned to a State under 
     this section may be used for the planning, design, and 
     construction of infrastructure-related projects to encourage 
     walking and bicycling to school, including--
       ``(i) sidewalk improvements;
       ``(ii) traffic calming and speed reduction improvements;
       ``(iii) pedestrian and bicycle crossing improvements;
       ``(iv) on-street bicycle facilities;
       ``(v) off-street bicycle and pedestrian facilities;
       ``(vi) secure bicycle parking facilities;
       ``(vii) traffic signal improvements; and
       ``(viii) pedestrian-railroad grade crossing improvements.
       ``(B) Location of projects.--Infrastructure-related 
     projects under subparagraph (A) may be carried out on--
       ``(i) any public road in the vicinity of a school; or
       ``(ii) any bicycle or pedestrian pathway or trail in the 
     vicinity of a school.
       ``(2) Behavioral activities.--
       ``(A) In general.--In addition to projects described in 
     paragraph (1), amounts apportioned to a State under this 
     section may be used for behavioral activities to encourage 
     walking and bicycling to school, including--
       ``(i) public awareness campaigns and outreach to press and 
     community leaders;
       ``(ii) traffic education and enforcement in the vicinity of 
     schools; and
       ``(iii) student sessions on bicycle and pedestrian safety, 
     health, and environment.
       ``(B) Allocation.--Of the amounts apportioned to a State 
     under this section for a fiscal year, not less than 10 
     percent shall be used for behavioral activities under this 
     paragraph.
       ``(f) Funding.--
       ``(1) Set aside.--Before apportioning amounts to carry out 
     section 148 for a fiscal year, the Secretary shall set aside 
     and use $70,000,000 to carry out this section.
       ``(2) Apportionment.--Amounts made available to carry out 
     this section shall be apportioned to States in accordance 
     with section 104(b)(5).
       ``(3) Administration of amounts.--Amounts apportioned to a 
     State under this section shall be administered by the State 
     transportation department.
       ``(4) Federal share.--The Federal share of the cost of a 
     project or activity funded under this section shall be 90 
     percent.
       ``(5) Period of availability.--Notwithstanding section 
     118(b)(2), amounts apportioned under this section shall 
     remain available until expended.''.
       (b) Conforming Amendments.--The analysis for subchapter I 
     of chapter 1 of title 23, United States Code is amended by 
     inserting after the item relating to section 149 the 
     following:

``150. Safe routes to school program.''.

     SEC. 1406. PURCHASES OF EQUIPMENT.

       (a) In General.--Section 152 of title 23, United States 
     Code is amended to read as follows:

     ``Sec. 152. Purchases of equipment

       ``(a) In General.--Subject to subsection (b), a State or 
     other entity carrying out a project under this chapter shall 
     purchase device, tool or other equipment needed for the 
     project only after completing and providing a written 
     analysis demonstrating the cost savings associated with 
     purchasing the equipment compared with renting the equipment 
     from a qualified equipment rental provider before the project 
     commences
       ``(b) Applicability.--This section shall apply to--
       ``(1) earth moving, road machinery, and material handling 
     equipment, or any other item, with a purchase price in excess 
     of $75,000; and
       ``(2) aerial work platforms with a purchase price in excess 
     of $25,000.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 152 and inserting the 
     following:

``152. Purchases of equipment.''.

     SEC. 1407. WORKZONE SAFETY.

       Section 358(b) of the National Highway System Designation 
     Act of 1995 (109 Stat. 625) is amended by adding at the end 
     the following:
       ``(7) Recommending all federally-assisted projects in 
     excess of $15,000,000 to enter into contracts only with work 
     zone safety services contractors, traffic control 
     contractors, and trench safety and shoring contractors that 
     carry general liability insurance in an amount not less than 
     $15,000,000.
       ``(8) Recommending federally-assisted projects the costs of 
     which exceed $15,000,000 to include work zone intelligent 
     transportation systems that are--
       ``(A) provided by a qualified vendor; and
       ``(B) monitored continuously.
       ``(9) Recommending federally-assisted projects to fully 
     fund not less than 5 percent of project costs for work zone 
     safety and temporary traffic control measures, in addition to 
     the cost of the project, which measures shall be provided by 
     a qualified work zone safety or traffic control provider.''.

     SEC. 1408. WORKER INJURY PREVENTION AND FREE FLOW OF 
                   VEHICULAR TRAFFIC.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall promulgate regulations--
       (1) to decrease the probability of worker injury;
       (2) to maintain the free flow of vehicular traffic by 
     requiring workers whose duties place the workers on, or in 
     close proximity to, a Federal-aid highway (as defined in 
     section 101 of title 23, United States Code) to wear high-
     visibility clothing; and
       (3) to require such other worker-safety measures for 
     workers described in paragraph (2) as the Secretary 
     determines appropriate.

             Subtitle E--Environmental Planning and Review

                   CHAPTER 1--TRANSPORTATION PLANNING

     SEC. 1501. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO 
                   STATE AND METROPOLITAN TRANSPORTATION PLANNING.

       (a) Metropolitan Planning.--Section 134(f) of title 23, 
     United States Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D)--
       (i) by inserting after ``environment'' the following: 
     ``(including the protection of habitat, water quality, and 
     agricultural and forest land, while minimizing invasive 
     species)''; and
       (ii) by inserting before the semicolon the following: 
     ``(including minimizing adverse health effects from mobile 
     source air pollution and promoting the linkage of the 
     transportation and development goals of the metropolitan 
     area)''; and
       (B) in subparagraph (G), by inserting ``and efficient use'' 
     after ``preservation'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following:
       ``(2) Selection of factors.--After soliciting and 
     considering any relevant public comments, the metropolitan 
     planning organization shall determine which of the factors 
     described in paragraph (1) are most appropriate for the 
     metropolitan area to consider.''.
       (b) Statewide Planning.--Section 135(c) of title 23, United 
     States Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D)--
       (i) by inserting after ``environment'' the following: 
     ``(including the protection of habitat, water quality, and 
     agricultural and forest land, while minimizing invasive 
     species)''; and

[[Page 824]]

       (ii) by inserting before the semicolon the following: 
     ``(including minimizing adverse health effects from mobile 
     source air pollution and promoting the linkage of the 
     transportation and development goals of the State)''; and
       (B) in subparagraph (G), by inserting ``and efficient use'' 
     after ``preservation'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following:
       ``(2) Selection of projects and strategies.--After 
     soliciting and considering any relevant public comments, the 
     State shall determine which of the projects and strategies 
     described in paragraph (1) are most appropriate for the State 
     to consider.''.

     SEC. 1502. CONSULTATION BETWEEN TRANSPORTATION AGENCIES AND 
                   RESOURCE AGENCIES IN TRANSPORTATION PLANNING.

       (a) In General.--Section 134(g) of title 23, United States 
     Code, is amended--
       (1) in paragraph (2)--
       (A) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (C) through (E), respectively; and
       (B) by inserting after subparagraph (A) the following:
       ``(B) Mitigation activities.--
       ``(i) In general.--A long-range transportation plan shall 
     include a discussion of--

       ``(I) types of potential habitat, hydrological, and 
     environmental mitigation activities that may assist in 
     compensating for loss of habitat, wetland, and other 
     environmental functions; and
       ``(II) potential areas to carry out these activities, 
     including a discussion of areas that may have the greatest 
     potential to restore and maintain the habitat types and 
     hydrological or environmental functions affected by the plan.

       ``(ii) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.'';
       (2) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (5), (6), and (7), respectively; and
       (3) by inserting after paragraph (3) the following:
       ``(4) Consultation.--
       ``(A) In general.--In each metropolitan area, the 
     metropolitan planning organization shall consult, as 
     appropriate, with State and local agencies responsible for 
     land use management, natural resources, environmental 
     protection, conservation, and historic preservation 
     concerning the development of a long-range transportation 
     plan.
       ``(B) Issues.--The consultation shall involve--
       ``(i) comparison of transportation plans with State 
     conservation plans or with maps, if available;
       ``(ii) comparison of transportation plans to inventories of 
     natural or historic resources, if available; or
       ``(iii) consideration of areas where wildlife crossing 
     structures may be needed to ensure connectivity between 
     wildlife habitat linkage areas.''.
       (b) Improved Consultation During State Transportation 
     Planning.--
       (1) In general.--Section 135(e)(2) of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(D) Consultation, comparison, and consideration.--
       ``(i) In general.--The long-range transportation plan shall 
     be developed, as appropriate, in consultation with State and 
     local agencies responsible for--

       ``(I) land use management;
       ``(II) natural resources;
       ``(III) environmental protection;
       ``(IV) conservation; and
       ``(V) historic preservation.

       ``(ii) Comparison and consideration.--Consultation under 
     clause (i) shall involve--

       ``(I) comparison of transportation plans to State 
     conservation plans or maps, if available;
       ``(II) comparison of transportation plans to inventories of 
     natural or historic resources, if available; or
       ``(III) consideration of areas where wildlife crossing 
     structures may be needed to ensure connectivity between 
     wildlife habitat linkage areas.''.

       (2) Additional requirements.--Section 135(e) of title 23, 
     United States Code, is amended--
       (A) by redesignating paragraphs (4) and (5) as paragraphs 
     (6) and (7), respectively; and
       (B) by inserting after paragraph (3) the following:
       ``(4) Mitigation activities.--
       ``(A) In general.--A long-range transportation plan shall 
     include a discussion of--
       ``(i) types of potential habitat, hydrological, and 
     environmental mitigation activities that may assist in 
     compensating for loss of habitat, wetlands, and other 
     environmental functions; and
       ``(ii) potential areas to carry out these activities, 
     including a discussion of areas that may have the greatest 
     potential to restore and maintain the habitat types and 
     hydrological or environmental functions affected by the plan.
       ``(B) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(5) Transportation strategies.--A long-range 
     transportation plan shall identify transportation strategies 
     necessary to efficiently serve the mobility needs of 
     people.''.

     SEC. 1503. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO 
                   TRANSPORTATION PROJECT PLANNING.

       Section 109(c)(2) of title 23, United States Code, is 
     amended--
       (1) by striking ``consider the results'' and inserting 
     ``consider--
       ``(A) the results'';
       (2) by striking the period at the end and inserting a 
     semicolon; and
       (3) by adding at the end the following:
       ``(B) the publication entitled `Flexibility in Highway 
     Design' of the Federal Highway Administration;
       ``(C) `Eight Characteristics of Process to Yield Excellence 
     and the Seven Qualities of Excellence in Transportation 
     Design' developed by the conference held during 1998 entitled 
     `Thinking Beyond the Pavement National Workshop on 
     Integrating Highway Development with Communities and the 
     Environment while Maintaining Safety and Performance'; and
       ``(D) any other material that the Secretary determines to 
     be appropriate.''.

     SEC. 1504. PUBLIC INVOLVEMENT IN TRANSPORTATION PLANNING AND 
                   PROJECTS.

       (a) Metropolitan Planning.--
       (1) Participation by interested parties.--Section 134(g)(5) 
     of title 23, United States Code (as redesignated by section 
     1502(a)(1)), is amended--
       (A) by striking ``Before approving'' and inserting the 
     following:
       ``(A) In general.--Before approving''; and
       (B) by adding at the end the following:
       ``(B) Methods.--In carrying out subparagraph (A), the 
     metropolitan planning organization shall, to the maximum 
     extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web.''.
       (2) Publication of long-range transportation plans.--
     Section 134(g)(6)(i) of title 23, United States Code (as 
     redesignated by section 1502(a)(1)), is amended by inserting 
     before the semicolon the following: ``, including (to the 
     maximum extent practicable) in electronically accessible 
     formats and means such as the World Wide Web''.
       (b) Statewide Planning.--
       (1) Participation by interested parties.--Section 135(e)(3) 
     of title 23, United States Code, is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) Methods.--In carrying out subparagraph (A), the State 
     shall, to the maximum extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web.''.
       (2) Publication of long-range transportation plans.--
     Section 135(e) of title 23, United States Code (as amended by 
     section 1502(b)(2)), is amended by adding at the end the 
     following:
       ``(8) Publication of long-range transportation plans.--Each 
     long-range transportation plan prepared by a State shall be 
     published or otherwise made available, including (to the 
     maximum extent practicable) in electronically accessible 
     formats and means, such as the World Wide Web.''.

     SEC. 1505. PROJECT MITIGATION.

       (a) Mitigation for National Highway System Projects.--
     Section 103(b)(6)(M) of title 23, United States Code, is 
     amended--
       (1) by inserting ``(i)'' after ``(M); and
       (2) by adding at the end the following:
       ``(ii) State habitat, streams, and wetlands mitigation 
     efforts under section 155.''.
       (b) Mitigation for Surface Transportation Program 
     Projects.--Section 133(b)(11) of title 23, United States 
     Code, is amended--
       (1) by inserting ``(A)'' after ``(11)''; and
       (2) by adding at the end the following:
       ``(B) State habitat, streams, and wetlands mitigation 
     efforts under section 155.''.
       (c) State Habitat, Streams, and Wetlands Mitigation 
     Funds.--Section 155 of title 23, United States Code, is 
     amended to read as follows:

     ``Sec. 155. State habitat, streams, and wetlands mitigation 
       funds

       ``(a) Establishment.--A State should establish a habitat, 
     streams, and wetlands mitigation fund (referred to in this 
     section as a `State fund').
       ``(b) Purpose.--The purpose of a State fund is to encourage 
     efforts for habitat, streams, and wetlands mitigation in 
     advance of or in conjunction with highway projects to--
       ``(1) ensure that the best habitat, streams, and wetland 
     mitigation sites now available are used; and
       ``(2) accelerate transportation project delivery by making 
     high-quality habitat, streams, and wetland mitigation credits 
     available when needed.
       ``(c) Funds.--A State may deposit into a State fund part of 
     the funds apportioned to the State under--
       ``(1) section 104(b)(1) for the National Highway System; 
     and
       ``(2) section 104(b)(3) for the surface transportation 
     program.
       ``(d) Use.--
       ``(1) In general.--Amounts deposited in a State fund shall 
     be used (in a manner consistent with this section) for 
     habitat, streams, or wetlands mitigation related to 1 or more 
     projects

[[Page 825]]

     funded under this title, including a project under the 
     transportation improvement program of the State developed 
     under section 135(f).
       ``(2) Endangered species.--In carrying out this section, a 
     State and cooperating agency shall give consideration to 
     mitigation projects, on-site or off-site, that restore and 
     preserve the best available sites to conserve biodiversity 
     and habitat for--
       ``(A) Federal or State listed threatened or endangered 
     species of plants and animals; and
       ``(B) plant or animal species warranting listing as 
     threatened or endangered, as determined by the Secretary of 
     the Interior in accordance with section 4(b)(3)(B) of the 
     Endangered Species Act of 1973 (16 U.S.C. 1533(b)(3)(B)).
       ``(e) Consistency With Applicable Requirements.--
     Contributions from the State fund to mitigation efforts may 
     occur in advance of project construction only if the efforts 
     are consistent with all applicable requirements of Federal 
     law (including regulations).''.
       (d) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 155 and inserting the 
     following:

``155. State habitat, streams, and wetlands mitigation funds.''.

         CHAPTER 2--TRANSPORTATION PROJECT DEVELOPMENT PROCESS

     SEC. 1511. TRANSPORTATION PROJECT DEVELOPMENT PROCESS.

       (a) In General.--Chapter 3 of title 23, United States Code 
     (as amended by section 1203(a)), is amended by inserting 
     after section 325 the following:

     ``Sec. 326. Transportation project development process

       ``(a) Definitions.--In this section:
       ``(1) Agency.--The term `agency' means any agency, 
     department, or other unit of Federal, State, local, or tribal 
     government.
       ``(2) Environmental impact statement.--The term 
     `environmental impact statement' means a detailed statement 
     of the environmental impacts of a project required to be 
     prepared under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).
       ``(3) Environmental review process.--
       ``(A) In general.--The term `environmental review process' 
     means the process for preparing, for a project--
       ``(i) an environmental impact statement; or
       ``(ii) any other document or analysis required to be 
     prepared under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.)
       ``(B) Inclusions.--The term `environmental review process' 
     includes the process for and completion of any environmental 
     permit, approval, review, or study required for a project 
     under any Federal law other than the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       ``(4) Project.--The term `project' means any highway or 
     transit project that requires the approval of the Secretary.
       ``(5) Project sponsor.--The term `project sponsor' means an 
     agency or other entity (including any private or public-
     private entity), that seeks approval of the Secretary for a 
     project.
       ``(6) State transportation department.--The term `State 
     transportation department' means any statewide agency of a 
     State with responsibility for transportation.
       ``(b) Process.--
       ``(1) Lead agency.--
       ``(A) In general.--The Department of Transportation shall 
     be the lead Federal agency in the environmental review 
     process for a project.
       ``(B) Joint lead agencies.--Nothing in this section 
     precludes another agency from being a joint lead agency in 
     accordance with regulations under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       ``(C) Concurrence of project sponsor.--The lead agency may 
     carry out the environmental review process in accordance with 
     this section only with the concurrence of the project 
     sponsor.
       ``(2) Request for process.--
       ``(A) In general.--A project sponsor may request that the 
     lead agency carry out the environmental review process for a 
     project or group of projects in accordance with this section.
       ``(B) Grant of request; public notice.--The lead agency 
     shall--
       ``(i) grant a request under subparagraph (A); and
       ``(ii) provide public notice of the request.
       ``(3) Effective date.--The environmental review process 
     described in this section may be applied to a project only 
     after the date on which public notice is provided under 
     subparagraph (B)(ii).
       ``(c) Roles and Responsibility of Lead Agency.--With 
     respect to the environmental review process for any project, 
     the lead agency shall have authority and responsibility to--
       ``(A) identify and invite cooperating agencies in 
     accordance with subsection (d);
       ``(B) develop an agency coordination plan with review, 
     schedule, and timelines in accordance with subsection (e);
       ``(C) determine the purpose and need for the project in 
     accordance with subsection (f);
       ``(D) determine the range of alternatives to be considered 
     in accordance with subsection (g);
       ``(E) convene dispute-avoidance and decision resolution 
     meetings and related efforts in accordance with subsection 
     (h);
       ``(F) take such other actions as are necessary and proper, 
     within the authority of the lead agency, to facilitate the 
     expeditious resolution of the environmental review process 
     for the project; and
       ``(G) prepare or ensure that any required environmental 
     impact statement or other document required to be completed 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) is completed in accordance with this 
     section and applicable Federal law.
       ``(d) Roles and Responsibilities of Cooperating Agencies.--
       ``(1) In general.--With respect to a project, each Federal 
     agency shall carry out any obligations of the Federal agency 
     in the environmental review process in accordance with this 
     section and applicable Federal law.
       ``(2) Invitation.--
       ``(A) In general.--The lead agency shall--
       ``(i) identify, as early as practicable in the 
     environmental review process for a project, any other 
     agencies that may have an interest in the project, 
     including--

       ``(I) agencies with jurisdiction over environmentally-
     related matters that may affect the project or may be 
     required by law to conduct an environmental-related 
     independent review or analysis of the project or determine 
     whether to issue an environmental-related permit, license, or 
     approval for the project; and
       ``(II) agencies with special expertise relevant to the 
     project;

       ``(ii) invite the agencies identified in clause (i) to 
     become participating agencies in the environmental review 
     process for that project; and
       ``(iii) grant requests to become cooperating agencies from 
     agencies not originally invited.
       ``(B) Responses.--The deadline for receipt of a response 
     from an agency that receives an invitation under subparagraph 
     (A)(ii)--
       ``(i) shall be 30 days after the date of receipt by the 
     agency of the invitation; but
       ``(ii) may be extended by the lead agency for good cause.
       ``(3) Declining of invitations.--A Federal agency that is 
     invited by the lead agency to participate in the 
     environmental review process for a project shall be 
     designated as a cooperating agency by the lead agency, unless 
     the invited agency informs the lead agency in writing, by the 
     deadline specified in the invitation, that the invited 
     agency--
       ``(A) has no jurisdiction or authority with respect to the 
     project;
       ``(B) has no expertise or information relevant to the 
     project; and
       ``(C) does not intend to submit comments on the project.
       ``(4) Effect of designation.--Designation as a cooperating 
     agency under this subsection shall not imply that the 
     cooperating agency--
       ``(A) supports a proposed project; or
       ``(B) has any jurisdiction over, or special expertise with 
     respect to evaluation of, the project.
       ``(5) Designations for categories of projects.--
       ``(A) In general.--The Secretary may invite other agencies 
     to become cooperating agencies for a category of projects.
       ``(B) Designation.--An agency may be designated as a 
     cooperating agency for a category of projects only with the 
     consent of the agency.
       ``(6) Concurrent reviews.--Each Federal agency shall, to 
     the maximum extent practicable--
       ``(A) carry out obligations of the Federal agency under 
     other applicable law concurrently, and in conjunction, with 
     the review required under the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.), unless doing so would 
     impair the ability of the Federal agency to carry out those 
     obligations; and
       ``(B) formulate and implement administrative, policy, and 
     procedural mechanisms to enable the agency to ensure 
     completion of the environmental review process in a timely, 
     coordinated, and environmentally responsible manner.
       ``(e) Development of Flexible Process and Timeline.--
       ``(1) Coordination plan.--
       ``(A) In general.--The lead agency shall establish a 
     coordination plan, which may be incorporated into a 
     memorandum of understanding, to coordinate agency and public 
     participation in and comment on the environmental review 
     process for a project or category of projects.
       ``(B) Workplan.--
       ``(i) In general.--The lead agency shall develop, as part 
     of the coordination plan, a workplan for completing the 
     collection, analysis, and evaluation of baseline data and 
     future impacts modeling necessary to complete the 
     environmental review process, including any data, analyses, 
     and modeling necessary for related permits, approvals, 
     reviews, or studies required for the project under other 
     laws.
       ``(ii) Consultation.--In developing the workplan under 
     clause (i), the lead agency shall consult with--

       ``(I) each cooperating agency for the project;
       ``(II) the State in which the project is located; and
       ``(III) if the State is not the project sponsor, the 
     project sponsor.

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

       ``(I) the responsibilities of cooperating agencies under 
     applicable laws;
       ``(II) resources available to the cooperating agencies;

[[Page 826]]

       ``(III) overall size and complexity of a project;
       ``(IV) the overall schedule for and cost of a project; and
       ``(V) the sensitivity of the natural and historic resources 
     that could be affected by the project.

       ``(D) Consistency with other time periods.--A schedule 
     under subparagraph (C) shall be consistent with any other 
     relevant time periods established under Federal law.
       ``(E) Modification.--The lead agency may--
       ``(i) lengthen a schedule established under subparagraph 
     (C) for good cause; and
       ``(ii) shorten a schedule only with the concurrence of the 
     affected cooperating agencies.
       ``(F) Dissemination.--A copy of a schedule under 
     subparagraph (C), and of any modifications to the schedule, 
     shall be--
       ``(i) provided to all cooperating agencies and to the State 
     transportation department of the State in which the project 
     is located (and, if the State is not the project sponsor, to 
     the project sponsor); and
       ``(ii) made available to the public.
       ``(2) Comments and timelines.--
       ``(A) In general.--A schedule established under paragraph 
     (1)(C) shall include--
       ``(i) opportunities for comment, deadline for receipt of 
     any comments submitted, deadline for lead agency response to 
     comments; and
       ``(ii) except as otherwise provided under paragraph (1)--

       ``(I) an opportunity to comment by agencies and the public 
     on a draft or final environmental impact statement for a 
     period of not more than 60 days longer than the minimum 
     period required under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.); and
       ``(II) for all other comment periods established by the 
     lead agency for agency or public comments in the 
     environmental review process, a period of not more than the 
     longer of--

       ``(aa) 30 days after the final day of the minimum period 
     required under Federal law (including regulations), if 
     available; or
       ``(bb) if a minimum period is not required under Federal 
     law (including regulations), 30 days.
       ``(B) Extension of comment periods.--The lead agency may 
     extend a period of comment established under this paragraph 
     for good cause.
       ``(C) Late comments.--A comment concerning a project 
     submitted under this paragraph after the date of termination 
     of the applicable comment period or extension of a comment 
     period shall not be eligible for consideration by the lead 
     agency unless the lead agency or project sponsor determines 
     there was good cause for the delay or the lead agency is 
     required to consider significant new circumstances or 
     information in accordance with sections 1501.7 and 1502.9 of 
     title 40, Code of Federal Regulations.
       ``(D) Deadlines for decisions under other laws.--In any 
     case in which a decision under any Federal law relating to a 
     project (including the issuance or denial of a permit or 
     license) is required to be made by the later of the date that 
     is 180 days after the date on which the Secretary made all 
     final decisions of the lead agency with respect to the 
     project, or 180 days after the date on which an application 
     was submitted for the permit or license, the Secretary shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives--
       ``(i) as soon as practicable after the 180-day period, an 
     initial notice of the failure of the Federal agency to make 
     the decision; and
       ``(ii) every 60 day thereafter until such date as all 
     decisions of the Federal agency relating to the project have 
     been made by the Federal agency, an additional notice that 
     describes the number of decisions of the Federal agency that 
     remain outstanding as of the date of the additional notice.
       ``(3) Involvement of the public.--Nothing in this 
     subsection shall reduce any time period provided for public 
     comment in the environmental review process under existing 
     Federal law (including a regulation).
       ``(f) Development of Project Purpose and Need Statement.--
       ``(1) In general.--With respect to the environmental review 
     process for a project, the purpose and need for the project 
     shall be defined in accordance with this subsection.
       ``(2) Authority.--The lead agency shall define the purpose 
     and need for a project, including the transportation 
     objectives and any other objectives intended to be achieved 
     by the project.
       ``(3) Involvement of cooperating agencies and the public.--
     Before determining the purpose and need for a project, the 
     lead agency shall solicit for 30 days, and consider, any 
     relevant comments on the draft statement of purpose and need 
     for a proposed project received from the public and 
     cooperating agencies.
       ``(4) Effect on other reviews.--For the purpose of 
     compliance with the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) and any other law requiring an 
     agency that is not the lead agency to determine or consider a 
     project purpose or project need, such an agency acting, 
     permitting, or approving under, or otherwise applying, 
     Federal law with respect to a project shall adopt the 
     determination of purpose and need for the project made by the 
     lead agency.
       ``(5) Savings.--Nothing in this subsection preempts or 
     interferes with any power, jurisdiction, responsibility, or 
     authority of an agency under applicable law (including 
     regulations) with respect to a project.
       ``(6) Contents.--
       ``(A) In general.--The statement of purpose and need shall 
     include a clear statement of the objectives that the proposed 
     project is intended to achieve.
       ``(B) Effect on existing standards.--Nothing in this 
     subsection shall alter existing standards for defining the 
     purpose and need of a project.
       ``(7) Factors to consider.--The lead agency may determine 
     that any of the following factors and documents are 
     appropriate for consideration in determining the purpose of 
     and need for a project:
       ``(A) Transportation plans and related planning documents 
     developed through the statewide and metropolitan 
     transportation planning process under sections 134 and 135.
       ``(B) Land use plans adopted by units of State, local, or 
     tribal government (or, in the case of Federal land, by the 
     applicable Federal land management agencies).
       ``(C) Economic development plans adopted by--
       ``(i) units of State, local, or tribal government; or
       ``(ii) established economic development planning 
     organizations or authorities.
       ``(D) Environmental protection plans, including plans for 
     the protection or treatment of--
       ``(i) air quality;
       ``(ii) water quality and runoff;
       ``(iii) habitat needs of plants and animals;
       ``(iv) threatened and endangered species;
       ``(v) invasive species;
       ``(vi) historic properties; and
       ``(vii) other environmental resources.
       ``(E) Any publicly available plans or policies relating to 
     the national defense, national security, or foreign policy of 
     the United States.
       ``(g) Development of Project Alternatives.--
       ``(1) In general.--With respect to the environmental review 
     process for a project, the alternatives shall be determined 
     in accordance with this subsection.
       ``(2) Authority.--The lead agency shall determine the 
     alternatives to be considered for a project.
       ``(3) Involvement of cooperating agencies and the public.--
       ``(A) In general.--Before determining the alternatives for 
     a project, the lead agency shall solicit for 30 days and 
     consider any relevant comments on the proposed alternatives 
     received from the public and cooperating agencies.
       ``(B) Alternatives.--The lead agency shall consider--
       ``(i) alternatives that meet the purpose and need of the 
     project; and
       ``(ii) the alternative of no action.
       ``(C) Effect on existing standards.--Nothing in this 
     subsection shall alter the existing standards for determining 
     the range of alternatives.
       ``(4) Effect on other reviews.--Any other agency acting 
     under or applying Federal law with respect to a project shall 
     consider only the alternatives determined by the lead agency.
       ``(5) Savings.--Nothing in this subsection preempts or 
     interferes with any power, jurisdiction, responsibility, or 
     authority of an agency under applicable law (including 
     regulations) with respect to a project.
       ``(6) Factors to consider.--The lead agency may determine 
     that any of the following factors and documents are 
     appropriate for consideration in determining the alternatives 
     for a project:
       ``(A) The overall size and complexity of the proposed 
     action.
       ``(B) The sensitivity of the potentially affected 
     resources.
       ``(C) The overall schedule and cost of the project.
       ``(D) Transportation plans and related planning documents 
     developed through the statewide and metropolitan 
     transportation planning process under sections 134 and 135 of 
     title 23 of the United States Code.
       ``(E) Land use plans adopted by units of State, local, or 
     tribal government (or, in the case of Federal land, by the 
     applicable Federal land management agencies).
       ``(F) Economic development plans adopted by--
       ``(i) units of State, local, or tribal government; or
       ``(ii) established economic development planning 
     organizations or authorities.
       ``(G) environmental protection plans, including plans for 
     the protection or treatment of--
       ``(i) air quality;
       ``(ii) water quality and runoff;
       ``(iii) habitat needs of plants and animals;
       ``(iv) threatened and endangered species;
       ``(v) invasive species;
       ``(vi) historic properties; and
       ``(vii) other environmental resources.
       ``(H) Any publicly available plans or policies relating to 
     the national defense, national security, or foreign policy of 
     the United States.
       ``(h) Prompt Issue Identification and Resolution Process.--
       ``(1) In general.--The lead agency, the project sponsor, 
     and the cooperating agencies shall work cooperatively, in 
     accordance with this section, to identify and resolve issues 
     that could--
       ``(A) delay completion of the environmental review process; 
     or
       ``(B) result in denial of any approvals required for the 
     project under applicable laws.
       ``(2) Lead agency responsibilities.--
       ``(A) In general.--The lead agency, with the assistance of 
     the project sponsor, shall make information available to the 
     cooperating agencies, as early as practicable in the 
     environmental review process, regarding--
       ``(i) the environmental and socioeconomic resources located 
     within the project area; and

[[Page 827]]

       ``(ii) the general locations of the alternatives under 
     consideration.
       ``(B) Basis for information.--Information about resources 
     in the project area may be based on existing data sources, 
     including geographic information systems mapping.
       ``(3) Cooperating agency responsibilities.--
       ``(A) In general.--Based on information received from the 
     lead agency, cooperating agencies shall promptly identify to 
     the lead agency any major issues of concern regarding the 
     potential environmental or socioeconomic impacts of a 
     project.
       ``(B) Major issues of concern.--A major issue of concern 
     referred to in subparagraph (A) may include any issue that 
     could substantially delay or prevent an agency from granting 
     a permit or other approval that is needed for a project, as 
     determined by a cooperating agency.
       ``(4) Issue resolution.--On identification of a major issue 
     of concern under paragraph (3), or at any time upon the 
     request of a project sponsor or the Governor of a State, the 
     lead agency shall promptly convene a meeting with 
     representatives of each of the relevant cooperating agencies, 
     the project sponsor, and the Governor to address and resolve 
     the issue.
       ``(5) Notification.--If a resolution of a major issue of 
     concern under paragraph (4) cannot be achieved by the date 
     that is 30 days after the date on which a meeting under that 
     paragraph is convened, the lead agency shall provide 
     notification of the failure to resolve the major issue of 
     concern to--
       ``(A) the heads of all cooperating agencies;
       ``(B) the project sponsor;
       ``(C) the Governor involved;
       ``(D) the Committee on Environment and Public Works of the 
     Senate; and
       ``(E) the Committee on Transportation and Infrastructure of 
     the House of Representatives.
       ``(i) Performance measurement.--
       ``(1) Progress reports.--The Secretary shall establish a 
     program to measure and report on progress toward improving 
     and expediting the planning and environmental review process.
       ``(2) Minimum requirements.--The program shall include, at 
     a minimum--
       ``(A) the establishment of criteria for measuring 
     consideration of--
       ``(i) State and metropolitan planning, project planning, 
     and design criteria; and
       ``(ii) environmental processing times and costs;
       ``(B) the collection of data to assess performance based on 
     the established criteria; and
       ``(C) the annual reporting of the results of the 
     performance measurement studies.
       ``(3) Involvement of the public and cooperating agencies.--
       ``(A) In general.--The Secretary shall biennially conduct a 
     survey of agencies participating in the environmental review 
     process under this section to assess the expectations and 
     experiences of each surveyed agency with regard to the 
     planning and environmental review process for projects 
     reviewed under this section.
       ``(B) Public participation.--In conducting the survey, the 
     Secretary shall solicit comments from the public.
       ``(j) Assistance to Affected Federal and State Agencies.--
       ``(1) In general.--The Secretary may approve a request by a 
     State or recipient to provide funds, for a highway project 
     made available under this title, or for a mass transit 
     project made available under chapter 53 of title 49 to the 
     State or recipient for the project, subject to the 
     coordinated environmental review process established under 
     this section, to affected Federal and State agencies to 
     provide the resources necessary to meet any time limits 
     established under this section.
       ``(2) Amounts.--Such requests under paragraph (1) shall be 
     approved only--
       ``(A) for such additional amounts as the Secretary 
     determines are necessary for the affected Federal and State 
     agencies to meet the time limits for environmental review; 
     and
       ``(B) if those time limits are less than the customary time 
     necessary for that review.''.
       (b) Conforming Amendments.--
       (1) The analysis for chapter 3 of title 23, United States 
     Code, is amended by inserting after the item relating to 
     section 325 (as added by section 1203(f)) the following:

``326. Transportation project development process.''.

       (2) Section 1309 of the Transportation Equity Act for the 
     21st Century (112 Stat. 232) is amended--
       (A) by striking subsections (a), (b), (c), (d), and (e);
       (B) by redesignating subsections (f) and (g) as subsections 
     (b) and (a), respectively, and moving the subsections so as 
     to appear in alphabetical order; and
       (C) in subsection (a) (as redesignated by subparagraph 
     (B)), in the subsection heading, by striking ``Federal Agency 
     Defined.--'' and inserting ``Definition of Federal 
     Agency.--''.

     SEC. 1512. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                   EXCLUSIONS.

       (a) In General.--Chapter 3 of title 23, United States Code 
     (as amended by section 1511(a)), is amended by inserting 
     after section 326 the following:

     ``Sec. 327. Assumption of responsibility for categorical 
       exclusions

       ``(a) Categorical Exclusion Determinations.--
       ``(1) In general.--The Secretary may assign, and a State 
     may assume, responsibility for determining whether certain 
     designated activities are included within classes of action 
     identified in regulation by the Secretary that are 
     categorically excluded from requirements for environmental 
     assessments or environmental impact statements pursuant to 
     regulations promulgated by the Council on Environmental 
     Quality under part 1500 of title 40, Code of Federal 
     Regulations (as in effect on October 1, 2003).
       ``(2) Scope of authority.--A determination described in 
     paragraph (1) shall be made by a State in accordance with 
     criteria established by the Secretary and only for types of 
     activities specifically designated by the Secretary.
       ``(3) Criteria.--The criteria under paragraph (2) shall 
     include provisions for public availability of information 
     consistent with section 552 of title 5 and the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       ``(b) Other Applicable Federal Laws.--
       ``(1) In general.--If a State assumes responsibility under 
     subsection (a), the Secretary may also assign and the State 
     may assume all or part of the responsibilities of the 
     Secretary for environmental review, consultation, or other 
     related actions required under any Federal law applicable to 
     activities that are classified by the Secretary as 
     categorical exclusions, with the exception of government-to-
     government consultation with Indian tribes, subject to the 
     same procedural and substantive requirements as would be 
     required if that responsibility were carried out by the 
     Secretary.
       ``(2) Sole responsibility.--A State that assumes 
     responsibility under paragraph (1) with respect to a Federal 
     law shall be solely responsible and solely liable for 
     complying with and carrying out that law, and the Secretary 
     shall have no such responsibility or liability.
       ``(c) Memoranda of Understanding.--
       ``(1) In general.--The Secretary and the State, after 
     providing public notice and opportunity for comment, shall 
     enter into a memorandum of understanding setting forth the 
     responsibilities to be assigned under this section and the 
     terms and conditions under which the assignments are made, 
     including establishment of the circumstances under which the 
     Secretary would reassume responsibility for categorical 
     exclusion determinations.
       ``(2) Term.--A memorandum of understanding--
       ``(A) shall have term of not more than 3 years; and
       ``(B) shall be renewable.
       ``(3) Acceptance of jurisdiction.--In a memorandum of 
     understanding, the State shall consent to accept the 
     jurisdiction of the Federal courts for the compliance, 
     discharge, and enforcement of any responsibility of the 
     Secretary that the State assumes.
       ``(4) Monitoring.--The Secretary shall--
       ``(A) monitor compliance by the State with the memorandum 
     of understanding and the provision by the State of financial 
     resources to carry out the memorandum of understanding; and
       ``(B) take into account the performance by the State when 
     considering renewal of the memorandum of understanding.
       ``(d) Termination.--The Secretary may terminate any 
     assumption of responsibility under a memorandum of 
     understanding on a determination that the State is not 
     adequately carrying out the responsibilities assigned to the 
     State.
       ``(e) State Agency Deemed To Be Federal Agency.--A State 
     agency that is assigned a responsibility under a memorandum 
     of understanding shall be deemed to be a Federal agency for 
     the purposes of the Federal law under which the 
     responsibility is exercised.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code (as amended by section 1511(b)), 
     is amended by inserting after the item relating to section 
     326 the following:

``327. Assumption of responsibility for categorical exclusions.''.

     SEC. 1513. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT 
                   PROGRAM.

       (a) In General.--Chapter 3 of title 23, United States Code 
     (as amended by section 1512(a)), is amended by inserting 
     after section 327 the following:

     ``Sec. 328. Surface transportation project delivery pilot 
       program

       ``(a) Establishment.--
       ``(1) In general.--The Secretary shall carry out a surface 
     transportation project delivery pilot program (referred to in 
     this section as the `program').
       ``(2) Assumption of responsibility.--
       ``(A) In general.--Subject to the other provisions of this 
     section, with the written agreement of the Secretary and a 
     State, which may be in the form of a memorandum of 
     understanding, the Secretary may assign, and the State may 
     assume, the responsibilities of the Secretary with respect to 
     1 or more highway projects within the State under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       ``(B) Additional responsibility.--If a State assumes 
     responsibility under subparagraph (A)--
       ``(i) the Secretary may assign to the State, and the State 
     may assume, all or part of the responsibilities of the 
     Secretary for environmental review, consultation, or other 
     action required under any Federal environmental law 
     pertaining to the review or approval of a specific project; 
     but
       ``(ii) the Secretary may not assign--

       ``(I) responsibility for any conformity determination 
     required under section 176 of the Clean Air Act (42 U.S.C. 
     7506); or
       ``(II) any responsibility imposed on the Secretary by 
     section 134 or 135.

       ``(C) Procedural and substantive requirements.--A State 
     shall assume responsibility

[[Page 828]]

     under this section subject to the same procedural and 
     substantive requirements as would apply if that 
     responsibility were carried out by the Secretary.
       ``(D) Federal responsibility.--Any responsibility of the 
     Secretary not explicitly assumed by the State by written 
     agreement under this section shall remain the responsibility 
     of the Secretary.
       ``(E) No effect on authority.--Nothing in this section 
     preempts or interferes with any power, jurisdiction, 
     responsibility, or authority of an agency, other than the 
     Department of Transportation, under applicable law (including 
     regulations) with respect to a project.
       ``(b) State Participation.--
       ``(1) Number of participating states.--The Secretary may 
     permit not more than 5 States (including the State of 
     Oklahoma) to participate in the program.
       ``(2) Application.--Not later than 270 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations that establish requirements relating to 
     information required to be contained in any application of a 
     State to participate in the program, including, at a 
     minimum--
       ``(A) the projects or classes of projects for which the 
     State anticipates exercising the authority that may be 
     granted under the program;
       ``(B) verification of the financial resources necessary to 
     carry out the authority that may be granted under the 
     program; and
       ``(C) evidence of the notice and solicitation of public 
     comment by the State relating to participation of the State 
     in the program, including copies of comments received from 
     that solicitation.
       ``(3) Public notice.--
       ``(A) In general.--Each State that submits an application 
     under this subsection shall give notice of the intent of the 
     State to participate in the program not later than 30 days 
     before the date of submission of the application.
       ``(B) Method of notice and solicitation.--The State shall 
     provide notice and solicit public comment under this 
     paragraph by publishing the complete application of the State 
     in accordance with the appropriate public notice law of the 
     State.
       ``(4) Selection criteria.--The Secretary may approve the 
     application of a State under this section only if--
       ``(A) the regulatory requirements under paragraph (2) have 
     been met;
       ``(B) the Secretary determines that the State has the 
     capability, including financial and personnel, to assume the 
     responsibility; and
       ``(C) the head of the State agency having primary 
     jurisdiction over highway matters enters into a written 
     agreement with the Secretary described in subsection (c).
       ``(5) Other federal agency views.--If a State applies to 
     assume a responsibility of the Secretary that would have 
     required the Secretary to consult with another Federal 
     agency, the Secretary shall solicit the views of the Federal 
     agency before approving the application.
       ``(c) Written Agreement.--A written agreement under this 
     section shall--
       ``(1) be executed by the Governor or the top-ranking 
     transportation official in the State who is charged with 
     responsibility for highway construction;
       ``(2) be in such form as the Secretary may prescribe;
       ``(3) provide that the State--
       ``(A) agrees to assume all or part of the responsibilities 
     of the Secretary described in subsection (a);
       ``(B) expressly consents, on behalf of the State, to accept 
     the jurisdiction of the Federal courts for the compliance, 
     discharge, and enforcement of any responsibility of the 
     Secretary assumed by the State;
       ``(C) certifies that State laws (including regulations) are 
     in effect that--
       ``(i) authorize the State to take the actions necessary to 
     carry out the responsibilities being assumed; and
       ``(ii) are comparable to section 552 of title 5, including 
     providing that any decision regarding the public availability 
     of a document under those State laws is reviewable by a court 
     of competent jurisdiction; and
       ``(D) agrees to maintain the financial resources necessary 
     to carry out the responsibilities being assumed.
       ``(d) Jurisdiction.--
       ``(1) In general.--The United States district courts shall 
     have exclusive jurisdiction over any civil action against a 
     State for failure to carry out any responsibility of the 
     State under this section.
       ``(2) Legal standards and requirements.--A civil action 
     under paragraph (1) shall be governed by the legal standards 
     and requirements that would apply in such a civil action 
     against the Secretary had the Secretary taken the actions in 
     question.
       ``(3) Intervention.--The Secretary shall have the right to 
     intervene in any action described in paragraph (1).
       ``(e) Effect of Assumption of Responsibility.--A State that 
     assumes responsibility under subsection (a)(2) shall be 
     solely responsible and solely liable for carrying out, in 
     lieu of the Secretary, the responsibilities assumed under 
     subsection (a)(2), until the program is terminated as 
     provided in subsection (i).
       ``(f) Limitations on Agreements.--Nothing in this section 
     permits a State to assume any rulemaking authority of the 
     Secretary under any Federal law.
       ``(g) Audits.--
       ``(1) In general.--To ensure compliance by a State with any 
     agreement of the State under subsection (c)(1) (including 
     compliance by the State with all Federal laws for which 
     responsibility is assumed under subsection (a)(2)), for each 
     State participating in the program under this section, the 
     Secretary shall conduct--
       ``(A) semiannual audits during each of the first 2 years of 
     State participation; and
       ``(B) annual audits during each subsequent year of State 
     participation.
       ``(2) Public availability and comment.--
       ``(A) In general.--An audit conducted under paragraph (1) 
     shall be provided to the public for comment.
       ``(B) Response.--Not later than 60 days after the date on 
     which the period for public comment ends, the Secretary shall 
     respond to public comments received under subparagraph (A).
       ``(h) Report to Congress.--The Secretary shall submit to 
     Congress an annual report that describes the administration 
     of the program.
       ``(i) Termination.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     program shall terminate on the date that is 6 years after the 
     date of enactment of this section.
       ``(2) Termination by secretary.--The Secretary may 
     terminate the participation of any State in the program if--
       ``(A) the Secretary determines that the State is not 
     adequately carrying out the responsibilities assigned to the 
     State;
       ``(B) the Secretary provides to the State--
       ``(i) notification of the determination of noncompliance; 
     and
       ``(ii) a period of at least 30 days during which to take 
     such corrective action as the Secretary determines is 
     necessary to comply with the applicable agreement; and
       ``(C) the State, after the notification and period provided 
     under subparagraph (B), fails to take satisfactory corrective 
     action, as determined by Secretary.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code (as amended by section 1512(b)), 
     is amended by inserting after the item relating to section 
     327 the following:

``328. Surface transportation project delivery pilot program.''.

     SEC. 1514. REGULATIONS.

       Except as provided in section 1513, not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     promulgate regulations necessary to implement the amendments 
     made by chapter 1 and this chapter.

                        CHAPTER 3--MISCELLANEOUS

     SEC. 1521. CRITICAL REAL PROPERTY ACQUISITION.

       Section 108 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(d) Critical Real Property Acquisition.--
       ``(1) In general.--Subject to paragraph (2), funds 
     apportioned to a State under this title may be used to pay 
     the costs of acquiring any real property that is determined 
     to be critical under paragraph (2) for a project proposed for 
     funding under this title.
       ``(2) Reimbursement.--The Federal share of the costs 
     referred to in paragraph (1) shall be eligible for 
     reimbursement out of funds apportioned to a State under this 
     title if, before the date of acquisition, the Secretary 
     determines that--
       ``(A) the property is offered for sale on the open market;
       ``(B) in acquiring the property, the State will comply with 
     the Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.); 
     and
       ``(C) immediate acquisition of the property is critical 
     because--
       ``(i) based on an appraisal of the property, the value of 
     the property is increasing significantly;
       ``(ii) there is an imminent threat of development or 
     redevelopment of the property; and
       ``(iii) the property is necessary for the implementation of 
     the goals stated in the proposal for the project.
       ``(3) Applicable law.--An acquisition of real property 
     under this section shall be considered to be an exempt 
     project under section 176 of the Clean Air Act (42 U.S.C. 
     7506).
       ``(4) Environmental review.--
       ``(A) In general.--A project proposed to be conducted under 
     this title shall not be conducted on property acquired under 
     paragraph (1) until any required environmental reviews for 
     the project have been completed.
       ``(B) Effect on consideration of project alternatives.--The 
     number of critical acquisitions of real property associated 
     with a project shall not affect the consideration of project 
     alternatives during the environmental review process.
       ``(5) Proceeds from the sale or lease of real property.--
     Section 156(c) shall not apply to the sale, use, or lease of 
     any real property acquired under paragraph (1).''.

     SEC. 1522. PLANNING CAPACITY BUILDING INITIATIVE.

       Section 104 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(m) Planning Capacity Building Initiative.--
       ``(1) In general.--The Secretary shall carry out a planning 
     capacity building initiative to support enhancements in 
     transportation planning to--
       ``(A) strengthen the processes and products of metropolitan 
     and statewide transportation planning under this title;
       ``(B) enhance tribal capacity to conduct joint 
     transportation planning under chapter 2;
       ``(C) participate in the metropolitan and statewide 
     transportation planning programs under this title; and

[[Page 829]]

       ``(D) increase the knowledge and skill level of 
     participants in metropolitan and statewide transportation.
       ``(2) Priority.--The Secretary shall give priority to 
     planning practices and processes that support--
       ``(A) the transportation elements of homeland security 
     planning, including--
       ``(i) training and best practices relating to emergency 
     evacuation;
       ``(ii) developing materials to assist areas in coordinating 
     emergency management and transportation officials; and
       ``(iii) developing training on how planning organizations 
     may examine security issues;
       ``(B) performance-based planning, including--
       ``(i) data and data analysis technologies to be shared with 
     States, metropolitan planning organizations, local 
     governments, and nongovernmental organizations that--

       ``(I) participate in transportation planning;
       ``(II) use the data and data analysis to engage in 
     metropolitan, tribal, or statewide transportation planning;
       ``(III) involve the public in the development of 
     transportation plans, projects, and alternative scenarios; 
     and
       ``(IV) develop strategies to avoid, minimize, and mitigate 
     the impacts of transportation facilities and projects; and

       ``(ii) improvement of the quality of congestion management 
     systems, including the development of--

       ``(I) a measure of congestion;
       ``(II) a measure of transportation system reliability; and
       ``(III) a measure of induced demand;

       ``(C) safety planning, including--
       ``(i) development of State strategic safety plans 
     consistent with section 148;
       ``(ii) incorporation of work zone safety into planning; and
       ``(iii) training in the development of data systems 
     relating to highway safety;
       ``(D) operations planning, including--
       ``(i) developing training of the integration of 
     transportation system operations and management into the 
     transportation planning process; and
       ``(ii) training and best practices relating to regional 
     concepts of operations;
       ``(E) freight planning, including--
       ``(i) modeling of freight at a regional and statewide 
     level; and
       ``(ii) techniques for engaging the freight community with 
     the planning process;
       ``(F) air quality planning, including--
       ``(i) assisting new and existing nonattainment and 
     maintenance areas in developing the technical capacity to 
     perform air quality conformity analysis;
       ``(ii) providing training on areas such as modeling and 
     data collection to support air quality planning and analysis;
       ``(iii) developing concepts and techniques to assist areas 
     in meeting air quality performance timeframes; and
       ``(iv) developing materials to explain air quality issues 
     to decisionmakers and the public; and
       ``(G) integration of environment and planning.
       ``(3) Use of funds.--The Secretary shall use amounts made 
     available under paragraph (4) to make grants to, or enter 
     into contracts, cooperative agreements, and other 
     transactions with, a Federal agency, State agency, local 
     agency, federally recognized Indian tribal government or 
     tribal consortium, authority, association, nonprofit or for-
     profit corporation, or institution of higher education for 
     research, program development, information collection and 
     dissemination, and technical assistance.
       ``(4) Set-aside.--
       ``(A) In general.--On October 1 of each fiscal year, of the 
     funds made available under subsection (a), the Secretary 
     shall set aside $4,000,000 to carry out this subsection.
       ``(B) Federal share.--The Federal share of the cost of an 
     activity carried out using funds made available under 
     subparagraph (A) shall be 100 percent.
       ``(C) Availability.--Funds made available under 
     subparagraph (A) shall remain available until expended.''.

                        Subtitle F--Environment

     SEC. 1601. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT; 
                   CONTROL OF INVASIVE PLANT SPECIES AND 
                   ESTABLISHMENT OF NATIVE SPECIES.

       (a) Modification to NHS/STP for Environmental Restoration, 
     Pollution Abatement, and Invasive Species.--
       (1) Modifications to national highway system.--Section 
     103(b)(6) of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(Q) Environmental restoration and pollution abatement in 
     accordance with section 165.
       ``(R) Control of invasive plant species and establishment 
     of native species in accordance with section 166.''.
       (2) Modifications to surface transportation program.--
     Section 133(b) of title 23, is amended by striking paragraph 
     (14) and inserting the following:
       ``(14) Environmental restoration and pollution abatement in 
     accordance with section 165.
       ``(15) Control of invasive plant species and establishment 
     of native species in accordance with section 166.''.
       (b) Eligible Activities.--Subchapter I of chapter 1 of 
     title 23, United States Code, is amended by adding at the end 
     the following:

     ``Sec. 165. Eligibility for environmental restoration and 
       pollution abatement

       ``(a) In General.--Subject to subsection (b), environmental 
     restoration and pollution abatement to minimize or mitigate 
     the impacts of any transportation project funded under this 
     title (including retrofitting and construction of storm water 
     treatment systems to meet Federal and State requirements 
     under sections 401 and 402 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1341, 1342)) may be carried out to 
     address water pollution or environmental degradation caused 
     wholly or partially by a transportation facility.
       ``(b) Maximum Expenditure.--In a case in which a 
     transportation facility is undergoing reconstruction, 
     rehabilitation, resurfacing, or restoration, the expenditure 
     of funds under this section for environmental restoration or 
     pollution abatement described in subsection (a) shall not 
     exceed 20 percent of the total cost of the reconstruction, 
     rehabilitation, resurfacing, or restoration of the facility.

     ``Sec. 166. Control of invasive plant species and 
       establishment of native species

       ``(a) Definitions.--In this section:
       ``(1) Invasive plant species--The term `invasive plant 
     species' means a nonindigenous species the introduction of 
     which causes or is likely to cause economic or environmental 
     harm or harm to human health.
       ``(2) Native plant species.--The term `native plant 
     species' means, with respect to a particular ecosystem, a 
     species that, other than as result of an introduction, 
     historically occurred or currently occurs in that ecosystem.
       ``(b) Control of Species.--
       ``(1) In general.--In accordance with all applicable 
     Federal law (including regulations), funds made available to 
     carry out this section may be used for--
       ``(A) participation in the control of invasive plant 
     species; and
       ``(B) the establishment of native species.
       ``(2) Included activities.--The participation and 
     establishment under paragraph (1) may include--
       ``(A) participation in statewide inventories of invasive 
     plant species and desirable plant species;
       ``(B) regional native plant habitat conservation and 
     mitigation;
       ``(C) native revegetation; and
       ``(D) training.
       ``(3) Contributions.--
       ``(A) In general.--Subject to subparagraph (B), an activity 
     described in paragraph (1) may be carried out concurrently 
     with, in advance of, or following the construction of a 
     project funded under this title.
       ``(B) Condition for activities conducted in advance of 
     project construction.--An activity described in paragraph (1) 
     may be carried out in advance of construction of a project 
     only if the activity is carried out in accordance with all 
     applicable requirements of Federal law (including 
     regulations) and State transportation planning processes.''.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1406(b)), is amended by adding at the end the 
     following:

``165. Eligibility for environmental restoration and pollution 
              abatement.''.
``166. Control of invasive plant species and establishment of native 
              species.''.

     SEC. 1602. NATIONAL SCENIC BYWAYS PROGRAM.

       (a) In General.--Section 162 of title 23, United States 
     Code, is amended--
       (1) in subsection (a)(1), by striking ``the roads as'' and 
     all that follows and inserting ``the roads as--
       ``(A) National Scenic Byways;
       ``(B) All-American Roads; or
       ``(C) America's Byways.'';
       (2) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``designated as'' and 
     all that follows and inserting ``designated as--
       ``(i) National Scenic Byways;
       ``(ii) All-American Roads; or
       ``(iii) America's Byways; and'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``Byway or All-
     American Road'' and inserting ``Byway, All-American Road, or 
     1 of America's Byways''; and
       (ii) in subparagraph (B), by striking ``designation as a'' 
     and all that follows and inserting ``designation as--
       ``(i) a National Scenic Byway;
       ``(ii) an All-American Road; or
       ``(iii) 1 of America's Byways; and''; and
       (3) in subsection (c)(4), by striking ``passing lane,''.
       (b) Research, Technical Assistance, Marketing, and 
     Promotion.--Section 162 of title 23, United States Code, is 
     amended--
       (1) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (2) by inserting after subsection (c) the following:
       ``(d) Research, Technical Assistance, Marketing, and 
     Promotion.--
       ``(1) In general.--The Secretary may carry out technical 
     assistance, marketing, market research, and promotion with 
     respect to State Scenic Byways, National Scenic Byways, All-
     American Roads, and America's Byways.
       ``(2) Cooperation, grants, and contracts.--The Secretary 
     may make grants to, or enter into contracts, cooperative 
     agreements, and other transactions with, any Federal agency, 
     State agency, authority, association, institution, for-profit 
     or nonprofit corporation, organization, or person, to carry 
     out projects and activities under this subsection.
       ``(3) Funds.--The Secretary may use not more than 
     $2,000,000 for each fiscal year of funds

[[Page 830]]

     made available for the National Scenic Byways Program to 
     carry out projects and activities under this subsection.
       ``(4) Priority.--The Secretary shall give priority under 
     this subsection to partnerships that leverage Federal funds 
     for research, technical assistance, marketing and 
     promotion.''; and
       (3) in subsection (g) (as redesignated by paragraph (1)), 
     by striking ``80 percent'' and inserting ``the share 
     applicable under section 120(b), as adjusted under subsection 
     (d) of that section''.

     SEC. 1603. RECREATIONAL TRAILS PROGRAM.

       (a) Recreational Trails Program Formula.--Section 104(h)(1) 
     of title 23, United States Code, is amended--
       (1) by striking ``Whenever'' and inserting the following:
       ``(A) In general.--In any case in which'';
       (2) by striking ``research and technical assistance under 
     the recreational trails program and for the administration of 
     the National Recreational Trails Advisory Committee'' and 
     inserting ``research, technical assistance, and training 
     under the recreational trails program''; and
       (3) by striking ``The Secretary'' and inserting the 
     following:
       ``(B) Contracts and agreements.--The Secretary''.
       (b) Recreational Trails Program Administration.--Section 
     206 of title 23, United States Code, is amended--
       (1) in subsection (c)--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (B) by striking ``To be eligible for apportionments under 
     this section'' and inserting the following:
       ``(1) In general.--To be eligible for apportionments under 
     this section''; and
       (C) by adding at the end the following:
       ``(2) Obligation requirement.--If a State does not meet the 
     requirements under paragraph (1) within a fiscal year, the 
     State shall not be eligible for an apportionment in the 
     following fiscal year.'';
       (2) in subsection (d)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Permissible uses.--Permissible uses of funds 
     apportioned to a State for a fiscal year to carry out this 
     section include--
       ``(A) maintenance and restoration of recreational trails;
       ``(B) development and rehabilitation of trailside and 
     trailhead facilities and trail linkages for recreational 
     trails;
       ``(C) purchase and lease of recreational trail construction 
     and maintenance equipment;
       ``(D) construction of new recreational trails, except that, 
     in the case of new recreational trails crossing Federal land, 
     construction of the trails shall be--
       ``(i) permissible under other law;
       ``(ii) necessary and recommended by a statewide 
     comprehensive outdoor recreation plan that is--

       ``(I) required under the Land and Water Conservation Fund 
     Act of 1965 (16 U.S.C. 460l-4 et seq.); and
       ``(II) in effect;

       ``(iii) approved by the administering agency of the State 
     designated under subsection (c)(1)(A); and
       ``(iv) approved by each Federal agency having jurisdiction 
     over the affected land, under such terms and conditions as 
     the head of the Federal agency determines to be appropriate, 
     except that the approval shall be contingent on compliance by 
     the Federal agency with all applicable laws, including--

       ``(I) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       ``(II) the Forest and Rangeland Renewable Resources 
     Planning Act of 1974 (16 U.S.C. 1600 et seq.); and
       ``(III) the Federal Land Policy and Management Act of 1976 
     (43 U.S.C. 1701 et seq.);

       ``(E) acquisition of easements and fee simple title to 
     property for recreational trails or recreational trail 
     corridors;
       ``(F) assessment of trail conditions for accessibility and 
     maintenance;
       ``(G) use of trail crews, youth conservation or service 
     corps, or other appropriate means to carry out activities 
     under this section;
       ``(H) development and dissemination of publications and 
     operation of educational programs to promote safety and 
     environmental protection, as those objectives relate to the 
     use of recreational trails, supporting non-law enforcement 
     trail safety and trail use monitoring patrol programs, and 
     providing trail-related training, but in an amount not to 
     exceed 5 percent of the apportionment made to the State for 
     the fiscal year; and
       ``(I) payment of costs to the State incurred in 
     administering the program, but in an amount not to exceed 7 
     percent of the apportionment made to the State for the fiscal 
     year to carry out this section.''; and
       (B) in paragraph (3)--
       (i) in subparagraph (D), by striking ``(2)(F)'' and 
     inserting ``(2)(I)''; and
       (ii) by adding at the end the following:
       ``(E) Use of youth conservation or service corps.--A State 
     shall make available not less than 10 percent of the 
     apportionments of the State to provide grants to, or to enter 
     into cooperative agreements or contracts with, qualified 
     youth conservation or service corps to perform recreational 
     trails program activities.''; and
       (3) in subsection (f)--
       (A) in paragraph (1)--
       (i) by inserting ``and the Federal share of the 
     administrative costs of a State'' after ``project''; and
       (ii) by striking ``not exceed 80 percent'' and inserting in 
     its place ``be determined in accordance with section 
     120(b)'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``80 percent of'' and 
     inserting ``the amount determined in accordance with section 
     120(b) for''; and
       (ii) in subparagraph (B), by inserting ``sponsoring the 
     project'' after ``Federal agency'';
       (C) by striking paragraph (5);
       (D) by redesignating paragraph (4) as paragraph (5);
       (E) by inserting after paragraph (3) the following:
       ``(4) Use of recreational trails program funds to match 
     other federal program funds.--Notwithstanding any other 
     provision of law, funds made available under this section may 
     be used to pay the non-Federal matching share for other 
     Federal program funds that are--
       ``(A) expended in accordance with the requirements of the 
     Federal program relating to activities funded and populations 
     served; and
       ``(B) expended on a project that is eligible for assistance 
     under this section.''; and
       (F) in paragraph (5) (as redesignated by subparagraph (D)), 
     by striking ``80 percent'' and inserting ``the Federal share 
     as determined in accordance with section 120(b)''; and
       (4) in subsection (h)--
       (A) in paragraph (1), by inserting after subparagraph (B) 
     the following:
       ``(C) Planning and environmental assessment costs incurred 
     prior to project approval.--A project funded under any of 
     subparagraphs (A) through (H) of subsection (d)(2) may permit 
     preapproval planning and environmental compliance costs 
     incurred not more than 18 months before project approval to 
     be credited toward the non-Federal share in accordance with 
     subsection (f).''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Waiver of highway program requirements.--A project 
     funded under this section--
       ``(A) is intended to enhance recreational opportunity;
       ``(B) is not considered to be a highway project; and
       ``(C) is not subject to--
       ``(i) section 112, 114, 116, 134, 135, 138, 217, or 301 of 
     this title; or
       ``(ii) section 303 of title 49.''.

     SEC. 1604. EXEMPTION OF INTERSTATE SYSTEM.

       Subsection 103(c) of title 23, United States Code, is 
     amended by adding at the end the following:
       ``(5) Exemption of interstate system.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Interstate System shall not be considered to be a 
     historic site under section 303 of title 49 or section 138 of 
     this title, regardless of whether the Interstate System or 
     portions of the Interstate System are listed on, or eligible 
     for listing on, the National Register of Historic Places.
       ``(B) Individual elements.--A portion of the Interstate 
     System that possesses an independent feature of historic 
     significance, such as a historic bridge or a highly 
     significant engineering feature, that would qualify 
     independently for listing on the National Register of 
     Historic Places, shall be considered to be a historic site 
     under section 303 of title 49 or section 138 of this title, 
     as applicable.''.

     SEC. 1605. STANDARDS.

       (a) In General.--Section 109(a) of title 23, United States 
     Code, is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) consider the preservation, historic, scenic, natural 
     environmental, and community values.''.
       (b) Context Sensitive Design.--Section 109 of title 23, 
     United States Code, is amended by striking subsection (p) and 
     inserting the following:
       ``(p) Context Sensitive Design.--
       ``(1) In general.--The Secretary shall encourage States to 
     design projects funded under this title that--
       ``(A) allow for the preservation of environmental, scenic, 
     or historic values;
       ``(B) ensure the safe use of the facility;
       ``(C) provide for consideration of the context of the 
     locality;
       ``(D) encourage access for other modes of transportation; 
     and
       ``(E) comply with subsection (a).
       ``(2) Approval by secretary.--Notwithstanding subsections 
     (b) and (c), the Secretary may approve a project described in 
     paragraph (1) for the National Highway System if the project 
     is designed to achieve the criteria specified in that 
     paragraph.''.

     SEC. 1606. USE OF HIGH OCCUPANCY VEHICLE LANES.

       Section 102 of title 23, United States Code, is amended by 
     striking subsection (a) and inserting the following:
       ``(a) High Occupancy Vehicle Lane Passenger Requirements.--
       ``(1) Definitions.--In this subsection:
       ``(A) Responsible agency.--The term `responsible agency' 
     means--
       ``(i) a State transportation department; and
       ``(ii) a local agency in a State that is responsible for 
     transportation matters.
       ``(B) Seriously degraded.--The term `seriously degraded', 
     with respect to a high occupancy vehicle lane, means, in the 
     case of a high

[[Page 831]]

     occupancy vehicle lane, the minimum average operating speed, 
     performance threshold, and associated time period of the high 
     occupancy vehicle lane, calculated and determined jointly by 
     all applicable responsible agencies and based on conditions 
     unique to the roadway, are unsatisfactory.
       ``(2) Requirements.--
       ``(A) In general.--Subject to subparagraph (B), for each 
     State, 1 or more responsible agencies shall establish the 
     occupancy requirements of vehicles operating on high 
     occupancy vehicle lanes.
       ``(B) Minimum number of occupants.--Except as provided in 
     paragraph (3), an occupancy requirement established under 
     subparagraph (A) shall--
       ``(i) require at least 2 occupants per vehicle for a 
     vehicle operating on a high occupancy vehicle lane; and
       ``(ii) in the case of a high occupancy vehicle lane that 
     traverses an adjacent State, be established in consultation 
     with the adjacent State.
       ``(3) Exceptions to hov occupancy requirements.--
       ``(A) Motorcycles.--For the purpose of this subsection, a 
     motorcycle--
       ``(i) shall not be considered to be a single occupant 
     vehicle; and
       ``(ii) shall be allowed to use a high occupancy vehicle 
     lane unless a responsible agency--

       ``(I) certifies to the Secretary the use of a high 
     occupancy vehicle lane by a motorcycle would create a safety 
     hazard; and
       ``(II) restricts that the use of the high occupancy vehicle 
     lane by motorcycles.

       ``(B) Low emission and energy-efficient vehicles.--
       ``(i) Definition of low emission and energy-efficient 
     vehicle.--In this subparagraph, the term `low emission and 
     energy-efficient vehicle' means a vehicle that has been 
     certified by the Administrator of the Environmental 
     Protection Agency--

       ``(I)(aa) to have a 45-mile per gallon or greater fuel 
     economy highway rating; or
       ``(bb) to qualify as an alternative fueled vehicle under 
     section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
     13211); and
       ``(II) as meeting Tier II emission level established in 
     regulations promulgated by the Administrator of the 
     Environmental Protection Agency under section 202(i) of the 
     Clean Air Act (42 U.S.C. 7521(i)) for that make and model 
     year vehicle.

       ``(ii) Exemption for low emission and energy-efficient 
     vehicles.--A responsible agency may permit qualifying low 
     emission and energy-efficient vehicles that do not meet 
     applicable occupancy requirements (as determined by the 
     responsible agency) to use high occupancy vehicle lanes if 
     the responsible agency--

       ``(I) establishes a program that addresses how those 
     qualifying low emission and energy-efficient vehicles are 
     selected and certified;
       ``(II) establishes requirements for labeling qualifying low 
     emission and energy-efficient vehicles (including procedures 
     for enforcing those requirements);
       ``(III) continuously monitors, evaluates, and reports to 
     the Secretary on performance; and
       ``(IV) imposes such restrictions on the use on high 
     occupancy vehicle lanes by vehicles that do not satisfy 
     established occupancy requirements as are necessary to ensure 
     that the performance of individual high occupancy vehicle 
     lanes, and the entire high occupancy vehicle lane system, 
     will not become seriously degraded.

       ``(C) Tolling of vehicles.--
       ``(i) In general.--A responsible agency may permit 
     vehicles, in addition to the vehicles described in paragraphs 
     (A), (B), and (D) that do not satisfy established occupancy 
     requirements, to use a high occupancy vehicle lane only if 
     the responsible agency charges those vehicles a toll.
       ``(ii) Applicable authority.--In imposing a toll under 
     clause (i), a responsible agency shall--

       ``(I) be subject to section 129;
       ``(II) establish a toll program that addresses ways in 
     which motorists may enroll and participate in the program;
       ``(III) develop, manage, and maintain a system that will 
     automatically collect the tolls from covered vehicles;
       ``(IV) continuously monitor, evaluate, and report on 
     performance of the system;
       ``(V) establish such policies and procedures as are 
     necessary--

       ``(aa) to vary the toll charged in order to manage the 
     demand for use of high occupancy vehicle lanes; and
       ``(bb) to enforce violations; and

       ``(VI) establish procedures to impose such restrictions on 
     the use of high occupancy vehicle lanes by vehicles that do 
     not satisfy established occupancy requirements as are 
     necessary to ensure that the performance of individual high 
     occupancy vehicle lanes, and the entire high occupancy 
     vehicle lane system, will not become seriously degraded.

       ``(D) Designated public transportation vehicles.--
       ``(i) Definition of designated public transportation 
     vehicle.--In this subparagraph, the term `designated public 
     transportation vehicle' means a vehicle that--

       ``(I) provides designated public transportation (as defined 
     in section 221 of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12141)); and
       ``(II)(aa) is owned or operated by a public entity; or
       ``(bb) is operated under a contract with a public entity.

       ``(ii) Use of high occupancy vehicle lanes.--A responsible 
     agency may permit designated public transportation vehicles 
     that do not satisfy established occupancy requirements to use 
     high occupancy vehicle lanes if the responsible agency--

       ``(I) requires the clear and identifiable labeling of each 
     designated public transportation vehicle operating under a 
     contract with a public entity with the name of the public 
     entity on all sides of the vehicle;
       ``(II) continuously monitors, evaluates, and reports on 
     performance of those designated public transportation 
     vehicles; and
       ``(III) imposes such restrictions on the use of high 
     occupancy vehicle lanes by designated public transportation 
     vehicles as are necessary to ensure that the performance of 
     individual high occupancy vehicle lanes, and the entire high 
     occupancy vehicle lane system, will not become seriously 
     degraded.

       ``(E) HOV lane management, operation, and monitoring.--
       ``(i) In general.--A responsible agency that permits any of 
     the exceptions specified in this paragraph shall comply with 
     clauses (ii) and (iii).
       ``(ii) Performance monitoring, evaluation, and reporting.--
     A responsible agency described in clause (i) shall establish, 
     manage, and support a performance monitoring, evaluation, and 
     reporting program under which the responsible agency 
     continuously monitors, assesses, and reports on the effects 
     that any vehicle permitted to use a high occupancy vehicle 
     lane under an exception under this paragraph may have on the 
     operation of--

       ``(I) individual high occupancy vehicle lanes; and
       ``(II) the entire high occupancy vehicle lane system.

       ``(iii) Operation of hov lane or system.--A responsible 
     agency described in clause (i) shall limit use of, or cease 
     to use, any of the exceptions specified in this paragraph if 
     the presence of any vehicle permitted to use a high occupancy 
     vehicle lane under an exception under this paragraph 
     seriously degrades the operation of--

       ``(I) individual high occupancy vehicle lanes; and
       ``(II) the entire high occupancy vehicle lane system.''.

     SEC. 1607. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

       (a) In General.--Section 217 of title 23, United States 
     Code, is amended--
       (1) in subsection (a), by inserting ``pedestrian and'' 
     after ``safe'';
       (2) in subsection (e), by striking ``bicycles'' each place 
     it appears and inserting ``pedestrians or bicyclists'';
       (3) by striking subsection (f) and inserting the following:
       ``(f) Federal Share.--The Federal share of the construction 
     of bicycle transportation facilities and pedestrian walkways, 
     and for carrying out nonconstruction projects relating to 
     safe pedestrian and bicycle use, shall be determined in 
     accordance with section 120(b).'';
       (4) by redesignating subsection (j) as subsection (l);
       (5) by inserting after subsection (i) the following:
       ``(j) Bicycle and Pedestrian Safety Grants.--
       ``(1) In general.--The Secretary shall select and make 
     grants to a national, nonprofit organization engaged in 
     promoting bicycle and pedestrian safety--
       ``(A) to operate a national bicycle and pedestrian 
     clearinghouse;
       ``(B) to develop information and educational programs 
     regarding walking and bicycling; and
       ``(C) to disseminate techniques and strategies for 
     improving bicycle and pedestrian safety.
       ``(2) Funding.--The Secretary may use funds apportioned 
     under section 104(n) to carry out this subsection.
       ``(3) Applicability of title 23.--Funds authorized to be 
     appropriated to carry out this subsection shall be available 
     for obligation in the same manner as if the funds were 
     apportioned under section 104, except that the funds shall 
     remain available until expended.
       ``(k) Funds for Bicycle and Pedestrian Safety.--A State 
     shall allocate for bicycle and pedestrian improvements in the 
     State a percentage of the funds remaining after 
     implementation of sections 130(e) and 150, in an amount that 
     is equal to or greater than the percentage of all fatal 
     crashes in the States involving bicyclists and 
     pedestrians.''; and
       (6) in subsection (l) (as redesignated by paragraph (4))--
       (A) by redesignating paragraph (4) as paragraph (5); and
       (B) by inserting after paragraph (3) the following:
       ``(4) Shared use path.--The term `shared use path' means a 
     multiuse trail or other path that is--
       ``(A) physically separated from motorized vehicular traffic 
     by an open space or barrier, either within a highway right-
     of-way or within an independent right-of-way; and
       ``(B) usable for transportation purposes (including by 
     pedestrians, bicyclists, skaters, equestrians, and other 
     nonmotorized users).''.
       (b) Reservation of Funds.--Section 104 of title 23, United 
     States Code (as amended by section 1601(b)), is amended by 
     adding at the end the following:
       ``(n) Bicycle and Pedestrian Safety Grants.--On October 1 
     of each of fiscal years 2004 through 2009, the Secretary, 
     after making the deductions authorized by subsections (a) and 
     (f), shall set aside $500,000 of the remaining funds 
     apportioned under subsection (b)(3) for

[[Page 832]]

     use in carrying out the bicycle and pedestrian safety grant 
     program under section 217.''.

     SEC. 1608. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-
                   OF-WAY.

       Section 111 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(d) Idling Reduction Facilities in Interstate Rights-of-
     Way.--
       ``(1) In general.--Notwithstanding subsection (a), a State 
     may--
       ``(A) permit electrification or other idling reduction 
     facilities and equipment, for use by motor vehicles used for 
     commercial purposes, to be placed in rest and recreation 
     areas, and in safety rest areas, constructed or located on 
     rights-of-way of the Interstate System in the State; and
       ``(B) may charge, or permit charges, for the use of those 
     facilities.
       ``(2) Purpose.--The exclusive purpose of the facilities 
     described in paragraph (1) (or similar technologies) shall be 
     to enable operators of motor vehicles used for commercial 
     purposes--
       ``(A) to turn off their engines while parked; and
       ``(B) to have heating, air conditioning, electricity, and 
     communication services in the vehicle without use of the 
     engine.''.

     SEC. 1609. TOLL PROGRAMS.

       (a) Interstate System Reconstruction and Rehabilitation 
     Pilot Program.--Section 1216(b) of the Transportation Equity 
     Act for the 21st Century (23 U.S.C. 129 note; 112 Stat. 
     212)--
       (1) is amended--
       (A) in paragraph (1)--
       (i) by striking ``The Secretary'' and inserting 
     ``Notwithstanding section 301, the Secretary''; and
       (ii) by striking ``that could not otherwise be adequately 
     maintained or functionally improved without the collection of 
     tolls'';
       (B) in paragraph (3), by striking subparagraph (C) and 
     inserting the following:
       ``(C) An analysis demonstrating that financing the 
     reconstruction or rehabilitation of the facility with the 
     collection of tolls under this pilot program is the most 
     efficient, economical, or expeditious way to advance the 
     project.'';
       (C) in paragraph (4)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) the State's analysis showing that financing the 
     reconstruction or rehabilitation of a facility with the 
     collection of tolls under the pilot program is the most 
     efficient, economical, or expeditious way to advance the 
     project;'';
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the facility needs reconstruction or rehabilitation, 
     including major work that may require replacing sections of 
     the existing facility on new alignment;'';
       (iii) by striking subparagraph (C); and
       (iv) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively;
       (2) is redesignated as subsection (d) of section 129 of 
     title 23, United States Code, and moved to appear at the end 
     of that section; and
       (3) by striking ``of title 23, United States Code'' each 
     place it appears.
       (b) Variable Toll Pricing Program.--Section 129 of title 
     23, United States Code (as amended by subsection (a)(2)), is 
     amended by adding at the end the following:
       ``(e) Variable Toll Pricing Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible toll facility.--The term `eligible toll 
     facility' includes--
       ``(i) a facility in existence on the date of enactment of 
     this subsection that collects tolls;
       ``(ii) a facility in existence on the date of enactment of 
     this subsection that serves high occupancy vehicle lanes; and
       ``(iii) a facility modified or constructed after the date 
     of enactment of this subsection to create additional tolled 
     capacity (including a facility constructed by a private 
     entity or using private funds).
       ``(B) Nonattainment area.--The term `nonattainment area' 
     has the meaning given the term in section 171 of the Clean 
     Air Act (42 U.S.C. 7501).
       ``(2) Establishment.--Notwithstanding sections 129 and 301, 
     the Secretary may permit a State, public authority, or a 
     public or private entity designated by a State, to collect a 
     toll from motor vehicles at an eligible toll facility for any 
     highway, bridge, or tunnel, including facilities on the 
     Interstate System--
       ``(A) to manage high levels of congestion; or
       ``(B) to reduce emissions in a nonattainment area or 
     maintenance area.
       ``(3) Limitation on use of revenues.--
       ``(A) In general.--All toll revenues received under 
     paragraph (2) shall be used by a State or public authority 
     for--
       ``(i) debt service;
       ``(ii) a reasonable return on investment of any private 
     financing; and
       ``(iii) the costs necessary for proper operation and 
     maintenance of any facilities under paragraph (2) (including 
     reconstruction, resurfacing, restoration, and 
     rehabilitation); and
       ``(iv) projects eligible for Federal assistance under this 
     title.
       ``(B) Requirements.--
       ``(i) Variable price requirement.--The Secretary shall 
     require, for each facility that charges tolls under this 
     subsection, that the tolls vary in price according to time of 
     day, as appropriate to manage congestion or improve air 
     quality.
       ``(ii) HOV passenger requirements.--In addition to the 
     exceptions to the high occupancy vehicle passenger 
     requirements established under section 102(a)(2), a State may 
     permit motor vehicles with fewer than 2 occupants to operate 
     in high occupancy vehicle lanes as part of a variable toll 
     pricing program established under this subsection.
       ``(C) Agreement.--
       ``(i) In general.--Before the Secretary may permit a 
     facility to charge tolls under this subsection, the Secretary 
     and the applicable State or public authority shall enter into 
     an agreement for each facility incorporating the conditions 
     described in subparagraphs (A) and (B).
       ``(ii) Termination.--An agreement under clause (i) shall 
     terminate with respect to a facility upon the decision of the 
     State or public authority to discontinue the variable tolling 
     program under this subsection for the facility.
       ``(iii) Debt.--If there is any debt outstanding on a 
     facility at the time at which the decision is made to 
     discontinue the program under this subsection with respect to 
     the facility, the facility may continue to charge tolls in 
     accordance with the terms of the agreement until such time as 
     the debt is retired.
       ``(D) Limitation on federal share.--The Federal share of 
     the cost of a project on a facility tolled under this 
     subsection, including a project to install the toll 
     collection facility shall be a percentage, not to exceed 80 
     percent, determined by the applicable State.
       ``(4) Eligibility.--To be eligible to participate in the 
     program under this subsection, a State or public authority 
     shall provide to the Secretary--
       ``(A) a description of the congestion or air quality 
     problems sought to be addressed under the program;
       ``(B) a description of--
       ``(i) the goals sought to be achieved under the program; 
     and
       ``(ii) the performance measures that would be used to gauge 
     the success made toward reaching those goals; and
       ``(C) such other information as the Secretary may require.
       ``(f) Automation.--A facility created or modified under 
     this section shall use an electronic toll collection system 
     that uses a transponder or other means to specify an account 
     for the purposes of collecting a toll as a vehicle passes 
     through the collection facility.
       ``(g) Interoperability.--
       ``(1) Rule.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall 
     promulgate a final rule specifying requirements, standards, 
     or performance specifications for automated toll collection 
     systems implemented under this section.
       ``(B) Development.--In developing that rule, which shall be 
     designed to maximize the interoperability of electronic 
     collection systems, the Secretary shall, to the maximum 
     extent practicable--
       ``(i) seek to accelerate progress toward the national goal 
     of achieving a nationwide interoperable electronic toll 
     collection system;
       ``(ii) take into account the use of transponders currently 
     deployed within an appropriate geographical area of travel 
     and the transponders likely to be in use within the next 5 
     years; and
       ``(iii) seek to minimize additional costs and maximize 
     convenience to users of toll facility and to the toll 
     facility owner or operator.
       ``(2) Future modifications.--As the state of technology 
     progresses, the Secretary shall modify the rule promulgated 
     under paragraph (1)(A), as appropriate.''.
       (c) Conforming Amendments.--
       (1) In general.--Section 1012 of the Intermodal Surface 
     Transportation Efficiency Act (23 U.S.C. 149 note; 105 Stat. 
     1938; 112 Stat. 211) is amended by striking subsection (b).
       (2) Continuation of program.--Notwithstanding the amendment 
     made by paragraph (1), the Secretary shall monitor and allow 
     any value pricing program established under a cooperative 
     agreement in effect on the day before the date of enactment 
     of this Act to continue.

     SEC. 1610. FEDERAL REFERENCE METHOD.

       (a) In General.--Section 6102 of the Transportation Equity 
     Act for the 21st Century (42 U.S.C. 7407 note; 112 Stat. 464) 
     is amended by striking subsection (e) and inserting the 
     following:
       ``(e) Field Study.--Not later than 2 years after the date 
     of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the 
     Administrator shall--
       ``(1) conduct a field study of the ability of the 
     PM2.5 Federal Reference Method to differentiate 
     those particles that are larger than 2.5 micrometers in 
     diameter;
       ``(2) develop a Federal reference method to measure 
     directly particles that are larger than 2.5 micrometers in 
     diameter without reliance on subtracting from coarse particle 
     measurements those particles that are equal to or smaller 
     than 2.5 micrometers in diameter;
       ``(3) develop a method of measuring the composition of 
     coarse particles; and
       ``(4) submit a report on the study and responsibilities of 
     the Administrator under paragraphs (1) through (3) to--
       ``(A) the Committee on Commerce of the House of 
     Representatives; and
       ``(B) the Committee on Environment and Public Works of the 
     Senate.''.

     SEC. 1611. ADDITION OF PARTICULATE MATTER AREAS TO CMAQ.

       Section 104(b)(2) of title 23, United States Code, is 
     amended--
       (1) in subparagraph B--
       (A) in the matter preceding clause (i), by striking ``ozone 
     or carbon monoxide'' and inserting ``ozone, carbon monoxide, 
     or fine particulate matter (PM2.5)'';
       (B) by striking clause (i) and inserting the following:

[[Page 833]]

       ``(i) 1.0, if at the time of apportionment, the area is a 
     maintenance area;'';
       (C) in clause (vi), by striking ``or'' after the semicolon; 
     and
       (D) in clause (vii), by striking ``area as described in 
     section 149(b) for ozone,'' and inserting ``area for ozone 
     (as described in section 149(b)) or for PM-2.5'';
       (2) by adding at the end the following:
       ``(viii) 1.0 if, at the time of apportionment, any county 
     that is not designated as a nonattainment or maintenance area 
     under the 1-hour ozone standard is designated as 
     nonattainment under the 8-hour ozone standard;
       ``(ix) 1.2 if, at the time of apportionment, the area is 
     not a nonattainment or maintenance area as described in 
     section 149(b) for ozone or carbon monoxide, but is an area 
     designated nonattainment under the PM-2.5 standard.'';
       (3) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Additional adjustment for carbon monoxide areas.--If, 
     in addition to being designated as a nonattainment or 
     maintenance area for ozone as described in section 149(b), 
     any county within the area was also classified under subpart 
     3 of part D of title I of the Clean Air Act (42 U.S.C. 7512 
     et seq.) as a nonattainment or maintenance area described in 
     section 149(b) for carbon monoxide, the weighted 
     nonattainment or maintenance area population of the county, 
     as determined under clauses (i) through (vi) or clause (viii) 
     of subparagraph (B), shall be further multiplied by a factor 
     of 1.2.'';
       (4) by redesignating subparagraph (D) and (E) as 
     subparagraphs (E) and (F) respectively; and
       (5) by inserting after subparagraph (C) the following:
       ``(D) Additional adjustment for pm 2.5 areas.--If, in 
     addition to being designated as a nonattainment or 
     maintenance area for ozone or carbon monoxide, or both as 
     described in section 149(b), any county within the area was 
     also designated under the PM-2.5 standard as a nonattainment 
     or maintenance area, the weighted nonattainment or 
     maintenance area population of those counties shall be 
     further multiplied by a factor of 1.2.''.

     SEC. 1612. ADDITION TO CMAQ-ELIGIBLE PROJECTS.

       (a) Eligible Projects.--Section 149(b) of title 23, United 
     States Code, is amended--
       (1) in paragraph (4), by striking ``or'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(6) if the project or program is for the purchase of 
     alternative fuel (as defined in section 301 of the Energy 
     Policy Act of 1992 (42 U.S.C. 13211)) or biodiesel.''.
       (b) States Receiving Minimum Apportionment.--Section 149(c) 
     of title 23, United States Code, is amended--
       (1) in paragraph (1), by striking ``for any project 
     eligible under the surface transportation program under 
     section 133.'' and inserting the following: ``for any project 
     in the State that--
       ``(A) would otherwise be eligible under this section as if 
     the project were carried out in a nonattainment or 
     maintenance area; or
       ``(B) is eligible under the surface transportation program 
     under section 133.''; and
       (2) in paragraph (2), by striking ``for any project in the 
     State eligible under section 133.'' and inserting the 
     following: ``for any project in the State that--
       ``(A) would otherwise be eligible under this section as if 
     the project were carried out in a nonattainment or 
     maintenance area; or
       ``(B) is eligible under the surface transportation program 
     under section 133.''.

     SEC. 1613. IMPROVED INTERAGENCY CONSULTATION.

       Section 149 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(g) Interagency Consultation.--The Secretary shall 
     encourage States and metropolitan planning organizations to 
     consult with State and local air quality agencies in 
     nonattainment and maintenance areas on the estimated emission 
     reductions from proposed congestion mitigation and air 
     quality improvement programs and projects.''.

     SEC. 1614. EVALUATION AND ASSESSMENT OF CMAQ PROJECTS.

       Section 149 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(h) Evaluation and Assessment of Projects.--
       ``(1) In general.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     evaluate and assess a representative sample of projects 
     funded under the congestion mitigation and air quality 
     program to--
       ``(A) determine the direct and indirect impact of the 
     projects on air quality and congestion levels; and
       ``(B) ensure the effective implementation of the program.
       ``(2) Database.--Using appropriate assessments of projects 
     funded under the congestion mitigation and air quality 
     program and results from other research, the Secretary shall 
     maintain and disseminate a cumulative database describing the 
     impacts of the projects.
       ``(3) Consideration.--The Secretary, in consultation with 
     the Administrator of the Environmental Protection Agency, 
     shall consider the recommendations and findings of the report 
     submitted to Congress under section 1110(e) of the 
     Transportation Equity Act for the 21st Century (112 Stat. 
     144), including recommendations and findings that would 
     improve the operation and evaluation of the congestion 
     mitigation and air quality improvement program under section 
     149.''.

     SEC. 1615. SYNCHRONIZED PLANNING AND CONFORMITY TIMELINES, 
                   REQUIREMENTS, AND HORIZON.

       (a) Metropolitan Planning.--
       (1) Development of long-range transportation plan.--Section 
     134(g)(1) of title 23, United States Code, is amended by 
     striking ``periodically, according to a schedule that the 
     Secretary determines to be appropriate,'' and inserting 
     ``every 4 years in areas designated as nonattainment, as 
     defined in section 107(d) of the Clean Air Act (42 U.S.C. 
     7407(d)), and in areas that were nonattainment that have been 
     redesignated to attainment in accordance with section 
     107(d)(3) of that Act (42 U.S.C. 7407(d)(3)), with a 
     maintenance plan under section 175A of that Act (42 U.S.C. 
     7505a), or every 5 years in areas designated as attainment 
     (as defined in section 107(d) of that Act (42 U.S.C. 
     7407(d))),''.
       (2) Metropolitan transportation improvement program.--
     Section 134(h) of title 23, United States Code, is amended--
       (A) in paragraph (1)(D), by striking ``2 years'' and 
     inserting ``4 years''; and
       (B) in paragraph (2)(A), by striking ``3-year'' and 
     inserting ``4-year''.
       (3) Statewide transportation improvement program.--Section 
     135(f)(1)(A) of title 23, United States Code, is amended by 
     inserting after ``program'' the following: ``(which program 
     shall cover a period of 4 years and be updated every 4 
     years)''.
       (4) Final regulations.--Not later than 18 months after the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the Secretary 
     shall promulgate regulations that are consistent with the 
     amendments made by this subsection.
       (b) Synchronized Conformity Determination.--Section 176(c) 
     of the Clean Air Act (42 U.S.C. 7506(c)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``(2) Any transportation plan'' and 
     inserting the following:
       ``(2) Transportation plans and programs.--Any 
     transportation plan'';
       (B) in subparagraph (C)(iii), by striking the period at the 
     end and inserting a semicolon;
       (C) in subparagraph (D)--
       (i) by striking ``Any project'' and inserting ``any 
     transportation project''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (D) by adding at the end the following:
       ``(E) the appropriate metropolitan planning organization 
     shall redetermine conformity of existing transportation plans 
     and programs not later than 2 years after the date on which 
     the Administrator--
       ``(i) finds a motor vehicle emissions budget to be adequate 
     in accordance with section 93.118(e)(4) of title 40, Code of 
     Federal Regulations (as in effect on October 1, 2003);
       ``(ii) approves an implementation plan that establishes a 
     motor vehicle emissions budget, if that budget has not yet 
     been used in a conformity determination prior to approval; or
       ``(iii) promulgates an implementation plan that establishes 
     or revises a motor vehicle emissions budget.'';
       (2) in paragraph (4)(B)(ii), by striking ``but in no case 
     shall such determinations for transportation plans and 
     programs be less frequent than every 3 years; and'' and 
     inserting ``but the frequency for making conformity 
     determinations on updated transportation plans and programs 
     shall be every 4 years, except in a case in which--

       ``(I) the metropolitan planning organization elects to 
     update a transportation plan or program more frequently; or
       ``(II) the metropolitan planning organization is required 
     to determine conformity in accordance with paragraph (2)(E); 
     and'';

       (3) in paragraph (4)(B)--
       (A) in clause (ii), by striking ``and'' at the end;
       (B) in clause (iii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iv) address the effects of the most recent population, 
     economic, employment, travel, transit ridership, congestion, 
     and induced travel demand information in the development and 
     application of the latest travel and emissions models.'';
       (4) by adding at the end the following:
       ``(7) Conformity horizon for transportation plans.--
       ``(A) In general.--For the purposes of this section, a 
     transportation plan in a nonattainment or maintenance area 
     shall be considered to be a transportation plan or a portion 
     of a transportation plan that extends for the longest of the 
     following periods:
       ``(i) The first 10-year period of any such transportation 
     plan.
       ``(ii) The latest year in the implementation plan 
     applicable to the area that contains a motor vehicle emission 
     budget.
       ``(iii) The year after the completion date of a regionally 
     significant project, if the project requires approval before 
     the subsequent conformity determination.
       ``(B) Exception.--In a case in which an area has a revision 
     to an implementation plan under section 175A(b) and the 
     Administrator has found the motor vehicle emissions budgets 
     from that revision to be adequate in accordance with section 
     93.118(e)(4) of title 40, Code of Federal Regulations (as in 
     effect on October 1, 2003), or has approved the revision, the 
     transportation plan shall be considered to be a 
     transportation plan or portion of a transportation plan that 
     extends through the last year of the implementation plan 
     required under section 175A(b).

[[Page 834]]

       ``(8) Definitions.--In this subsection:
       ``(A) Regionally significant project.--
       ``(i) In general.--The term `regionally significant 
     project' means a transportation project that is on a facility 
     that serves a regional transportation need, including--

       ``(I) access to and from the area outside of the region;
       ``(II) access to and from major planned developments, 
     including new retail malls, sports complexes, or 
     transportation terminals; and
       ``(III) most transportation terminals.

       ``(ii) Principal arterials and fixed guideways.--The term 
     `regionally significant project' includes, at a minimum--

       ``(I) all principal arterial highways; and
       ``(II) all fixed guideway transit facilities that offer an 
     alternative to regional highway travel.

       ``(iii) Additional projects.--The interagency consultation 
     process and procedures described in section 93.105(c) of 
     title 40, Code of Federal Regulations (as in effect on 
     October 1, 2003), shall be used to make determinations as to 
     whether minor arterial highways and other transportation 
     projects should be considered `regionally significant 
     projects'.
       ``(iv) Exclusions.--The term `regionally significant 
     project' does not include any project of a type listed in 
     sections 93.126 or 127 of title 40, Code of Federal 
     Regulations (as in effect on October 1, 2003).
       ``(B) Significant revision.--The term `significant 
     revision' means--
       ``(i) with respect to a regionally significant project, a 
     significant change in design concept or scope to the project; 
     and
       ``(ii) with respect to any other kind of project, a change 
     that converts a project that is not a regionally significant 
     project into a regionally significant project.
       ``(C) Transportation project.--The term `transportation 
     project' includes only a project that is--
       ``(i) a regionally significant project; or
       ``(ii) a project that makes a significant revision to an 
     existing project.''; and
       (5) in the matter following paragraph (3)(B), by inserting 
     ``transportation'' before ``project'' each place it appears.

     SEC. 1616. TRANSITION TO NEW AIR QUALITY STANDARDS.

       Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Methods of conformity determination before budget is 
     available.--
       ``(A) In general.--Until such time as a motor vehicle 
     emission budget from an implementation plan submitted for a 
     national ambient air quality standard is determined to be 
     adequate in accordance with section 93.118(e)(4) of title 40, 
     Code of Federal Regulations (as in effect on October 1, 
     2003), or the submitted implementation plan is approved, 
     conformity of such a plan, program, or project shall be 
     demonstrated, as selected through the consultation process 
     required under paragraph (4)(D)(i), with--
       ``(i) a motor vehicle emission budget that has been found 
     adequate in accordance with section 93.118(e)(4) of title 40, 
     Code of Federal Regulations (as in effect on October 1, 
     2003), or that has been approved, from an implementation plan 
     for the most recent prior applicable national ambient air 
     quality standard addressing the same pollutant; or
       ``(ii) other such tests as the Administrator shall 
     determine to ensure that--

       ``(I) the transportation plan or program--

       ``(aa) is consistent with the most recent estimates of 
     mobile source emissions;
       ``(bb) provides for the expeditious implementation of 
     transportation control measures in the applicable 
     implementation plan; and
       ``(cc) with respect to an ozone or carbon monoxide 
     nonattainment area, contributes to annual emissions 
     reductions consistent with sections 182(b)(1) and 187(a)(7); 
     and

       ``(II) the transportation project--

       ``(aa) comes from a conforming transportation plan and 
     program described in this subparagraph; and
       ``(bb) in a carbon monoxide nonattainment area, eliminates 
     or reduces the severity and number of violations of the 
     carbon monoxide standards in the area substantially affected 
     by the project.
       ``(B) Determination for a transportation project in a 
     carbon monoxide nonattainment area.--A determination under 
     subparagraph (A)(ii)(II)(bb) may be made as part of either 
     the conformity determination for the transportation program 
     or for the individual project taken as a whole during the 
     environmental review phase of project development.''.

     SEC. 1617. REDUCED BARRIERS TO AIR QUALITY IMPROVEMENTS.

       Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (as 
     amended by section 1615(b)(4)) is amended--
       (1) by redesignating paragraph (8) as paragraph (9); and
       (2) by inserting after paragraph (7) the following:
       ``(8) Substitution for transportation control measures.--
       ``(A) In general.--Transportation control measures that are 
     specified in an implementation plan may be replaced or added 
     to the implementation plan with alternate or additional 
     transportation control measures if--
       ``(i) the substitute measures achieve equivalent or greater 
     emissions reductions than the control measure to be replaced, 
     as demonstrated with an analysis that is consistent with the 
     current methodology used for evaluating the replaced control 
     measure in the implementation plan;
       ``(ii) the substitute control measures are implemented--

       ``(I) in accordance with a schedule that is consistent with 
     the schedule provided for control measures in the 
     implementation plan; or
       ``(II) if the implementation plan date for implementation 
     of the control measure to be replaced has passed, as soon as 
     practicable after the implementation plan date but not later 
     than the date on which emission reductions are necessary to 
     achieve the purpose of the implementation plan;

       ``(iii) the substitute and additional control measures are 
     accompanied with evidence of adequate personnel, funding, and 
     authority under State or local law to implement, monitor, and 
     enforce the control measures;
       ``(iv) the substitute and additional control measures were 
     developed through a collaborative process that included--

       ``(I) participation by representatives of all affected 
     jurisdictions (including local air pollution control 
     agencies, the State air pollution control agency, and State 
     and local transportation agencies);
       ``(II) consultation with the Administrator; and
       ``(III) reasonable public notice and opportunity for 
     comment; and

       ``(v) the metropolitan planning organization, State air 
     pollution control agency, and the Administrator concur with 
     the equivalency of the substitute or additional control 
     measures.
       ``(B) Adoption.--After carrying out subparagraph (A), a 
     State shall adopt the substitute or additional transportation 
     control measure in the applicable implementation plan.
       ``(C) No requirement for express permission.--The 
     substitution or addition of a transportation control measure 
     in accordance with this paragraph shall not be contingent on 
     there being any provision in the implementation plan that 
     expressly permits such a substitution or addition.
       ``(D) No requirement for new conformity determination.--The 
     substitution or addition of a transportation control measure 
     in accordance with this paragraph shall not require--
       ``(i) a new conformity determination for the transportation 
     plan; or
       ``(ii) a revision of the implementation plan.
       ``(E) Continuation of control measure being replaced.--A 
     control measure that is being replaced by a substitute 
     control measure under this paragraph shall remain in effect 
     until the substitute control measure is approved.
       ``(F) Effect of adoption.--Adoption of a substitute control 
     measure shall constitute rescission of the previously 
     applicable control measure.''.

     SEC. 1618. AIR QUALITY MONITORING DATA INFLUENCED BY 
                   EXCEPTIONAL EVENTS.

       (a) In General.--Section 319 of the Clean Air Act (42 
     U.S.C. 7619) is amended--
       (1) by striking the section heading and all that follows 
     through ``after notice and opportunity for public hearing'' 
     and inserting the following:

     ``SEC. 319. AIR QUALITY MONITORING.

       ``(a) In General.--After notice and opportunity for public 
     hearing''; and
       (2) by adding at the end the following:
       ``(b) Air Quality Monitoring Data Influenced by Exceptional 
     Events.--
       ``(1) Definition of exceptional event.--In this section:
       ``(A) In general.--The term `exceptional event' means an 
     event that--
       ``(i) affects air quality;
       ``(ii) is not reasonably controllable or preventable;
       ``(iii) is--

       ``(I) a natural event; or
       ``(II) an event caused by human activity that is unlikely 
     to recur at a particular location; and

       ``(iv) is determined by the Administrator through the 
     process established in the regulations promulgated under 
     paragraph (2) to be an exceptional event.
       ``(B) Exclusions.--The term `exceptional event' does not 
     include--
       ``(i) stagnation of air masses or meteorological 
     inversions;
       ``(ii) a meteorological event involving high temperatures 
     or lack of precipitation; or
       ``(iii) air pollution relating to source noncompliance.
       ``(2) Regulations.--
       ``(A) Proposed regulations.--Not later than March 1, 2005, 
     after consultation with Federal land managers and State air 
     pollution control agencies, the Administrator shall publish 
     in the Federal Register proposed regulations governing the 
     review and handling of air quality monitoring data influenced 
     by exceptional events.
       ``(B) Final regulations.--Not later than 1 year after the 
     date on which the Administrator publishes proposed 
     regulations under subparagraph (A), and after providing an 
     opportunity for interested persons to make oral presentations 
     of views, data, and arguments regarding the proposed 
     regulations, the Administrator shall promulgate final 
     regulations governing the review and handling or air quality 
     monitoring data influenced by an exceptional event that are 
     consistent with paragraph (3).
       ``(3) Principles and requirements.--
       ``(A) Principles.--In promulgating regulations under this 
     section, the Administrator shall follow--
       ``(i) the principle that protection of public health is the 
     highest priority;
       ``(ii) the principle that timely information should be 
     provided to the public in any case in which the air quality 
     is unhealthy;

[[Page 835]]

       ``(iii) the principle that all ambient air quality data 
     should be included in a timely manner, an appropriate Federal 
     air quality database that is accessible to the public;
       ``(iv) the principle that each State must take necessary 
     measures to safeguard public health regardless of the source 
     of the air pollution; and
       ``(v) the principle that air quality data should be 
     carefully screened to ensure that events not likely to recur 
     are represented accurately in all monitoring data and 
     analyses.
       ``(B) Requirements.--Regulations promulgated under this 
     section shall, at a minimum, provide that--
       ``(i) the occurrence of an exceptional event must be 
     demonstrated by reliable, accurate data that is promptly 
     produced and provided by Federal, State, or local government 
     agencies;
       ``(ii) a clear causal relationship must exist between the 
     measured exceedances of a national ambient air quality 
     standard and the exceptional event to demonstrate that the 
     exceptional event caused a specific air pollution 
     concentration at a particular air quality monitoring 
     location;
       ``(iii) there is a public process for determining whether 
     an event is exceptional; and
       ``(iv) there are criteria and procedures for the Governor 
     of a State to petition the Administrator to exclude air 
     quality monitoring data that is directly due to exceptional 
     events from use in determinations by the Environmental 
     Protection Agency with respect to exceedances or violations 
     of the national ambient air quality standards.
       ``(4) Interim provision.--Until the effective date of a 
     regulation promulgated under paragraph (2), the following 
     guidance issued by the Administrator shall continue to apply:
       ``(A) Guidance on the identification and use of air quality 
     data affected by exceptional events (July 1986).
       ``(B) Areas affected by PM-10 natural events, May 30, 1996.
       ``(C) Appendices I, K, and N to part 50 of title 40, Code 
     of Federal Regulations.''.

     SEC. 1619. CONFORMING AMENDMENTS.

       Section 176(c)(4) of the Clean Air Act (42 U.S.C. 
     7506(c)(4) is amended--
       (1) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (D) through (F), respectively;
       (2) by striking ``(4)(A) No later than one year after the 
     date of enactment of the Clean Air Act Amendments of 1990, 
     the Administrator shall promulgate'' and inserting the 
     following:
       ``(4) Criteria and procedures for determining conformity.--
       ``(A) In general.--The Administrator shall promulgate, and 
     periodically update,'';
       (3) in subparagraph (A)--
       (A) in the second sentence, by striking ``No later than one 
     year after such date of enactment, the Administrator, with 
     the concurrence of the Secretary of Transportation, shall 
     promulgate'' and inserting the following:
       ``(B) Transportation plans, programs, and projects.--The 
     Administrator, with the concurrence of the Secretary of 
     Transportation, shall promulgate, and periodically update,''; 
     and
       (B) in the third sentence, by striking ``A suit'' and 
     inserting the following:
       ``(C) Civil action to compel promulgation.--A civil 
     action''; and
       (4) by striking subparagraph (E) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(E) Inclusion of criteria and procedures in sip.--Not 
     later than 2 years after the date of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003, the procedures under subparagraph (A) shall 
     include a requirement that each State include in the State 
     implementation plan criteria and procedures for consultation 
     in accordance with the Administrator's criteria and 
     procedures for consultation required by subparagraph 
     (D)(i).''.

     SEC. 1620. HIGHWAY STORMWATER DISCHARGE MITIGATION PROGRAM.

       (a) Highway Stormwater Mitigation Projects.--Section 133(d) 
     of title 23, United States Code (as amended by section 
     1401(a)(2)(B)), is amended by adding at the end the 
     following:
       ``(5) Highway stormwater discharge mitigation projects.--Of 
     the amount apportioned to a State under section 104(b)(3) for 
     a fiscal year, 2 percent shall be available only for projects 
     and activities carried out under section 167.''.
       (b) Highway Stormwater Discharge Mitigation Program.--
     Subchapter I of chapter 1 of title 23, United States Code (as 
     amended by section 1601(a)), is amended by adding at the end 
     the following:

     ``Sec. 167. Highway stormwater discharge mitigation program

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Eligible mitigation project.--The term `eligible 
     mitigation project' means a practice or technique that--
       ``(A) improves stormwater discharge water quality;
       ``(B) attains preconstruction hydrology;
       ``(C) promotes infiltration of stormwater into groundwater;
       ``(D) recharges groundwater;
       ``(E) minimizes stream bank erosion;
       ``(F) promotes natural filters;
       ``(G) otherwise mitigates water quality impacts of highway 
     stormwater discharges, improves surface water quality, or 
     enhances groundwater recharge; or
       ``(H) reduces flooding caused by highway stormwater 
     discharge.
       ``(3) Federal-aid highway and associated facility.--The 
     term `Federal-aid highway and associated facility' means--
       ``(A) a Federal-aid highway; or
       ``(B) a facility or land owned by a State (or political 
     subdivision of a State) that is directly associated with the 
     Federal-aid highway.
       ``(4) Highway stormwater discharge.--The term `highway 
     stormwater discharge' means stormwater discharge from a 
     Federal-aid highway, or a Federal-aid highway and associated 
     facility, that was constructed before the date of enactment 
     of this section.
       ``(5) Highway stormwater discharge mitigation.--The term 
     `highway stormwater discharge mitigation' means--
       ``(A) the reduction of water quality impacts of stormwater 
     discharges from Federal-aid highways or Federal-aid highways 
     and associated facilities; or
       ``(B) the enhancement of groundwater recharge from 
     stormwater discharges from Federal-aid highways or Federal-
     aid highways and associated facilities.
       ``(6) Program.--The term `program' means the highway 
     stormwater discharge mitigation program established under 
     subsection (b).
       ``(b) Establishment.--The Secretary shall establish a 
     highway stormwater discharge mitigation program--
       ``(1) to improve the quality of stormwater discharge from 
     Federal-aid highways or Federal-aid highways and associated 
     facilities; and
       ``(2) to enhance groundwater recharge.
       ``(c) Priority of Projects.--For projects funded from the 
     allocation under section 133(d)(6), a State shall give 
     priority to projects sponsored by a State or local government 
     that assist the State or local government in complying with 
     the Federal Water Pollution Control Act (33 U.S.C. 1251 et 
     seq.).
       ``(d) Guidance.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary, in consultation 
     with the Administrator, shall issue guidance to assist States 
     in carrying out this section.
       ``(2) Requirements for guidance.--The guidance issued under 
     paragraph (1) shall include information concerning innovative 
     technologies and nonstructural best management practices to 
     mitigate highway stormwater discharges.''.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1601(b), is amended by inserting after the item 
     relating to section 166 the following:

``167. Highway stormwater discharge mitigation program.''.

                         Subtitle G--Operations

     SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.

       (a) Surface Transportation Program Eligibility.--Section 
     133(b) of title 23, United States Code (as amended by section 
     1601(a)(2)), is amended by adding at the end the following:
       ``(16) Regional transportation operations collaboration and 
     coordination activities that are associated with regional 
     improvements, such as traffic incident management, technology 
     deployment, emergency management and response, traveler 
     information, and regional congestion relief.
       ``(17) Rush hour congestion relief.--
       ``(A) In general.--Subject to subparagraph (B), a State may 
     spend not more than 2 percent of the funds apportioned under 
     this section to reduce traffic delays caused by motor vehicle 
     accidents and breakdowns on highways during peak driving 
     times.
       ``(B) Use of funds.--A State, metropolitan planning 
     organization, or local government may use the funds under 
     subparagraph (A)--
       ``(i) to develop a region-wide coordinated plan to mitigate 
     traffic delays caused by motor vehicle accidents and 
     breakdowns;
       ``(ii) to purchase or lease telecommunications equipment 
     for first responders;
       ``(iii) to purchase or lease towing and recovery services;
       ``(iv) to pay contractors for towing and recovery;
       ``(v) to rent vehicle storage areas adjacent to roadways;
       ``(vi) to fund service patrols, equipment, and operations;
       ``(vii) to purchase incident detection equipment;
       ``(viii) to carry out training.''.
       (b) Congestion Mitigation and Air Quality Improvement 
     Program Eligibility.--Section 149(b)(5) of title 23, United 
     States Code, is amended by inserting ``improve transportation 
     systems management and operations,'' after 
     ``intersections,''.
       (c) Transportation Systems Management and Operations.--
       (1) In general.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1620(b)), is 
     amended by adding at the end the following:

     ``Sec. 168. Transportation systems management and operations

       ``(a) In General.--The Secretary shall carry out a 
     transportation systems management and operations program to--
       ``(1) ensure efficient and effective transportation systems 
     management and operations on Federal-aid highways through 
     collaboration, coordination, and real-time information 
     sharing at a regional and Statewide level among--
       ``(A) managers and operators of major modes of 
     transportation;

[[Page 836]]

       ``(B) public safety officials; and
       ``(C) the general public; and
       ``(2) manage and operate Federal-aid highways in a 
     coordinated manner to preserve the capacity and maximize the 
     performance of highway and transit facilities for travelers 
     and carriers.
       ``(b) Authorized Activities.--
       ``(1) In general.--In carrying out the program under 
     subsection (a), the Secretary may carry out activities to--
       ``(A) encourage managers and operators of major modes of 
     transportation, public safety officials, and transportation 
     planners in urbanized areas that are responsible for 
     conducting the day-to-day management, operations, public 
     safety, and planning of transportation facilities and 
     services to collaborate on and coordinate, on a regional 
     level and in a continuous and sustained manner, improved 
     transportation systems management and operations; and
       ``(B) encourage States to--
       ``(i) establish a system of basic real-time monitoring for 
     the surface transportation system; and
       ``(ii) provide the means to share the data gathered under 
     clause (i) among--

       ``(I) highway, transit, and public safety agencies;
       ``(II) jurisdictions (including States, cities, counties, 
     and metropolitan planning organizations);
       ``(III) private-sector entities; and
       ``(IV) the general public.

       ``(2) Activities.--Activities to be carried out under 
     paragraph (1) include--
       ``(A) developing a regional concept of operations that 
     defines a regional strategy shared by all transportation and 
     public safety participants with respect to the manner in 
     which the transportation systems of the region should be 
     managed, operated, and measured;
       ``(B) the sharing of information among operators, service 
     providers, public safety officials, and the general public; 
     and
       ``(C) guiding, in a regionally-coordinated manner and in a 
     manner consistent with and integrated into the metropolitan 
     and statewide transportation planning processes and regional 
     intelligent transportation system architecture, the 
     implementation of regional transportation system management 
     and operations initiatives, including--
       ``(i) emergency evacuation and response;
       ``(ii) traffic incident management;
       ``(iii) technology deployment; and
       ``(iv) traveler information systems delivery.
       ``(c) Cooperation.--In carrying out the program under 
     subsection (a), the Secretary may assist and cooperate with 
     other Federal agencies, State and local governments, 
     metropolitan planning organizations, private industry, and 
     other interested parties to improve regional collaboration 
     and real-time information sharing between managers and 
     operators of major modes of transportation, public safety 
     officials, emergency managers, and the general public to 
     increase the security, safety, and reliability of Federal-aid 
     highways.
       ``(d) Guidance; Regulations.--
       ``(1) In general.--In carrying out the program under 
     subsection (a), the Secretary may issue guidance or 
     promulgate regulations for the procurement of transportation 
     system management and operations facilities, equipment, and 
     services, including--
       ``(A) equipment procured in preparation for natural 
     disasters, disasters caused by human activity, and 
     emergencies;
       ``(B) system hardware;
       ``(C) software; and
       ``(D) software integration services.
       ``(2) Considerations.--In developing the guidance or 
     regulations under paragraph (1), the Secretary may consider 
     innovative procurement methods that support the timely and 
     streamlined execution of transportation system management and 
     operations programs and projects.
       ``(3) Financial assistance.--The Secretary may authorize 
     the use of funds made available under section 104(b)(3) to 
     provide assistance for regional operations collaboration and 
     coordination activities that are associated with regional 
     improvements, such as--
       ``(A) traffic incident management;
       ``(B) technology deployment;
       ``(C) emergency management and response;
       ``(D) traveler information; and
       ``(E) congestion relief.''.
       (2) Conforming amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1620(c)), is amended by adding at the end:

``168. Transportation systems management and operations.''.

     SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1701(c)(1)), is 
     amended by adding at the end the following:

     ``Sec. 169. Real-time system management information program

       ``(a) In General.--The Secretary shall carry out a real-
     time system management information program to--
       ``(1) provide a nationwide system of basic real-time 
     information for managing and operating the surface 
     transportation system;
       ``(2)(A) identify long-range real-time highway and transit 
     monitoring needs; and
       ``(B) develop plans and strategies for meeting those needs;
       ``(3) provide the capability and means to share the basic 
     real-time information with State and local governments and 
     the traveling public; and
       ``(4) provide the nationwide capability to monitor, in 
     real-time, the traffic and travel conditions of major 
     highways in the United States, and to share that information 
     with State and local governments and the traveling public, 
     to--
       ``(A) improve the security of the surface transportation 
     system;
       ``(B) address congestion problems;
       ``(C) support improved response to weather events; and
       ``(D) facilitate the distribution of national and regional 
     traveler information.
       ``(b) Data Exchange Formats.--Not later than 1 year after 
     the date of enactment of this section, the Secretary shall 
     establish data exchange formats to ensure that the data 
     provided by highway and transit monitoring systems (including 
     statewide incident reporting systems) can readily be 
     exchanged between jurisdictions to facilitate the nationwide 
     availability of information on traffic and travel conditions.
       ``(c) Statewide Incident Reporting System.--Not later than 
     2 years after the date of enactment of this section, or not 
     later than 5 years after the date of enactment of this 
     section if the Secretary determines that adequate real-time 
     communications capability will not be available within 2 
     years after the date of enactment of this section, each State 
     shall establish a statewide incident reporting system to 
     facilitate the real-time electronic reporting of highway and 
     transit incidents to a central location for use in--
       ``(1) monitoring an incident;
       ``(2) providing accurate traveler information on the 
     incident; and
       ``(3) responding to the incident as appropriate.
       ``(d) Regional ITS Architecture.--
       ``(1) In general.--In developing or updating regional 
     intelligent transportation system architectures under section 
     940.9 of title 23, Code of Federal Regulations (or any 
     successor regulation), States and local governments shall 
     address--
       ``(A) the real-time highway and transit information needs 
     of the State or local government, including coverage, 
     monitoring systems, data fusion and archiving, and methods of 
     exchanging or sharing information; and
       ``(B) the systems needed to meet those needs.
       ``(2) Data exchange formats.--In developing or updating 
     regional intelligent transportation system architectures, 
     States and local governments are encouraged to incorporate 
     the data exchange formats developed by the Secretary under 
     subsection (b) to ensure that the data provided by highway 
     and transit monitoring systems can readily be--
       ``(A) exchanged between jurisdictions; and
       ``(B) shared with the traveling public.
       ``(e) Eligible Funding.--Subject to project approval by the 
     Secretary, a State may--
       ``(1) use funds apportioned to the State under section 
     505(a) to carry out activities relating to the planning of 
     real-time monitoring elements; and
       ``(2) use funds apportioned to the State under paragraphs 
     (1) and (3) of section 104(b) to carry out activities 
     relating to the planning and deployment of real-time 
     monitoring elements.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1701(c)(2)), is amended adding at the end the 
     following:

``169. Real-time system management information program.''.

                  Subtitle H--Federal-Aid Stewardship

     SEC. 1801. FUTURE INTERSTATE SYSTEM ROUTES.

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

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

     SEC. 1802. STEWARDSHIP AND OVERSIGHT.

       (a) In General.--Section 106 of title 23, United States 
     Code, is amended--
       (1) by striking subsection (e) and inserting the following:
       ``(e) Value Engineering Analysis.--
       ``(1) Definition of value engineering analysis.--
       ``(A) In general.--In this subsection, the term `value 
     engineering analysis' means a systematic process of review 
     and analysis of a project, during the design phase, by a 
     multidisciplined team of persons not involved in the project, 
     that is conducted to provide recommendations such as 
     recommendations described in subparagraph (B) for--
       ``(i) reducing the total cost of the project; and
       ``(ii) improving the quality of the project.
       ``(B) Inclusions.--The recommendations referred to in 
     subparagraph (A) include, with respect to a project--
       ``(i) combining or eliminating otherwise inefficient use of 
     expensive parts of the original proposal design for the 
     project; and
       ``(ii) completely redesigning the project using different 
     technologies, materials, or methods so as to accomplish the 
     original purpose of the project.
       ``(2) Analysis.--The State shall provide a value 
     engineering analysis or other cost-reduction analysis for--

[[Page 837]]

       ``(A) each project on the Federal-Aid System with an 
     estimated total cost of $25,000,000 or more;
       ``(B) a bridge project with an estimated total cost of 
     $20,000,000 or more; and
       ``(C) any other project the Secretary determines to be 
     appropriate.
       ``(3) Major projects.--The Secretary may require more than 
     1 analysis described in paragraph (2) for a major project 
     described in subsection (h).
       ``(4) Requirements.--Analyses described in paragraph (1) 
     for a bridge project shall--
       ``(A) include bridge substructure requirements based on 
     construction material; and
       ``(B) be evaluated--
       ``(i) on engineering and economic bases, taking into 
     consideration acceptable designs for bridges; and
       ``(ii) using an analysis of life-cycle costs and duration 
     of project construction.''; and
       (2) by striking subsections (g) and (h) and inserting the 
     following:
       ``(g) Oversight Program.--
       ``(1) Program.--
       ``(A) In general.--The Secretary shall establish an 
     oversight program to monitor the effective and efficient use 
     of funds made available under this title.
       ``(B) Minimum requirements.--At a minimum, the program 
     shall monitor and respond to all areas relating to financial 
     integrity and project delivery.
       ``(2) Financial integrity.--
       ``(A) Financial management systems.--
       ``(i) In general.--The Secretary shall perform annual 
     reviews of the financial management systems of State 
     transportation departments that affect projects approved 
     under subsection (a).
       ``(ii) Review areas.--In carrying out clause (i), the 
     Secretary shall use risk assessment procedures to identify 
     areas to be reviewed.
       ``(B) Project costs.--The Secretary shall--
       ``(i) develop minimum standards for estimating project 
     costs; and
       ``(ii) periodically evaluate practices of the States for--

       ``(I) estimating project costs;
       ``(II) awarding contracts; and
       ``(III) reducing project costs.

       ``(C) Responsibility of the states.--
       ``(i) In general.--Each State shall be responsible for 
     ensuring that subrecipients of Federal funds within the State 
     under this section have--

       ``(I) sufficient accounting controls to properly manage the 
     Federal funds; and
       ``(II) adequate project delivery systems for projects 
     approved under this section.

       ``(ii) Review by secretary.--The Secretary shall 
     periodically review monitoring by the States of those 
     subrecipients.
       ``(3) Project delivery.--The Secretary shall--
       ``(A) perform annual reviews of the project delivery system 
     of each State, including analysis of 1 or more activities 
     that are involved in the life cycle of a project; and
       ``(B) employ risk assessment procedures to identify areas 
     to be reviewed.
       ``(4) Specific oversight responsibilities.--Nothing in this 
     section discharges or otherwise affects any oversight 
     responsibility of the Secretary--
       ``(A) specifically provided for under this title or other 
     Federal law; or
       ``(B) for the design and construction of all Appalachian 
     development highways under section 14501 of title 40 or 
     section 170 of this title.
       ``(h) Major Projects.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, a recipient of Federal financial assistance for 
     a project under this title with an estimated total cost of 
     $1,000,000,000 or more, and recipients for such other 
     projects as may be identified by the Secretary, shall submit 
     to the Secretary for each project--
       ``(A) a project management plan; and
       ``(B) an annual financial plan.
       ``(2) Project management plan.--A project management plan 
     shall document--
       ``(A) the procedures and processes that are in effect to 
     provide timely information to the project decisionmakers to 
     effectively manage the scope, costs, schedules, and quality 
     of, and the Federal requirements applicable to, the project; 
     and
       ``(B) the role of the agency leadership and management team 
     in the delivery of the project.
       ``(3) Financial plan.--A financial plan shall--
       ``(A) be based on detailed estimates of the cost to 
     complete the project; and
       ``(B) provide for the annual submission of updates to the 
     Secretary that are based on reasonable assumptions, as 
     determined by the Secretary, of future increases in the cost 
     to complete the project.
       ``(i) Other Projects.--A recipient of Federal financial 
     assistance for a project under this title that receives 
     $100,000,000 or more in Federal assistance for the project, 
     and that is not covered by subsection (h), shall prepare, and 
     make available to the Secretary at the request of the 
     Secretary, an annual financial plan for the project.''.
       (b) Conforming Amendments.--
       (1) Section 114(a) of title 23, United States Code, is 
     amended--
       (A) in the first sentence by striking ``highways or 
     portions of highways located on a Federal-aid system'' and 
     inserting ``Federal-aid highway or a portion of a Federal-aid 
     highway''; and
       (B) by striking the second sentence and inserting ``The 
     Secretary shall have the right to conduct such inspections 
     and take such corrective action as the Secretary determines 
     to be appropriate.''.
       (2) Section 117 of title 23, United States Code, is 
     amended--
       (A) by striking subsection (d); and
       (B) by redesignating subsections (e) through (h) as 
     subsections (d) through (g), respectively.
       (c) Contractor Suspension and Debarment Policy; Sharing 
     Fraud Monetary Recoveries.--
       (1) In general.--Section 307 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 307. Contractor suspension and debarment policy; 
       sharing fraud monetary recoveries

       ``(a) Mandatory Enforcement Policy.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the Secretary--
       ``(A) shall debar any contractor or subcontractor convicted 
     of a criminal or civil offense involving fraud relating to a 
     project receiving Federal highway or transit funds for such 
     period as the Secretary determines to be appropriate; and
       ``(B) subject to approval by the Attorney General--
       ``(i) except as provided in paragraph (2), shall suspend 
     any contractor or subcontractor upon indictment for criminal 
     or civil offenses involving fraud; and
       ``(ii) may exclude nonaffiliated subsidiaries of a debarred 
     business entity.
       ``(2) National security exception.--If the Secretary finds 
     that mandatory debarment or suspension of a contractor or 
     subcontractor under paragraph (1) would be contrary to the 
     national security of the United States, the Secretary--
       ``(A) may waive the debarment or suspension; and
       ``(B) in the instance of each waiver, shall provide 
     notification to Congress of the waiver with appropriate 
     details.
       ``(b) Sharing of Monetary Recoveries.--
       ``(1) In general.--Notwithstanding any other provision of 
     law--
       ``(A) monetary judgments accruing to the Federal Government 
     from judgments in Federal criminal prosecutions and civil 
     judgments pertaining to fraud in highway and transit programs 
     shall be shared with the State or local transit agency 
     involved; and
       ``(B) the State or local transit agency shall use the funds 
     for transportation infrastructure and oversight activities 
     relating to programs authorized under title 23 and this 
     title.
       ``(2) Amount.--The amount of recovered funds to be shared 
     with an affected State or local transit agency shall be--
       ``(A) determined by the Attorney General, in consultation 
     with the Secretary; and
       ``(B) considered to be Federal funds to be used in 
     compliance with other relevant Federal transportation laws 
     (including regulations).
       ``(3) Fraudulent activity.--Paragraph (1) shall not apply 
     in any case in which a State or local transit agency is found 
     by the Attorney General, in consultation with the Secretary, 
     to have been involved or negligent with respect to the 
     fraudulent activities.''.
       (2) Conforming amendment.--The analysis for chapter 3 of 
     title 49, United States Code, is amended by striking the item 
     relating to section 307 and inserting the following:

``307. Contractor suspension and debarment policy; sharing fraud 
              monetary recoveries.''.

     SEC. 1803. DESIGN-BUILD CONTRACTING.

       Section 112(b)(3) of title 23, United States Code, is 
     amended by striking subparagraph (C) and inserting the 
     following:
       ``(C) Qualified projects.--A qualified project referred to 
     in subparagraph (A) is a project under this chapter 
     (including intermodal projects) for which the Secretary has 
     approved the use of design-build contracting under criteria 
     specified in regulations promulgated by the Secretary.''.

     SEC. 1804. PROGRAM EFFICIENCIES--FINANCE.

       (a) Advance Construction.--Section 115 of title 23, United 
     States Code, is amended--
       (1) by redesignating subsection (c) as subsection (d);
       (2) by redesignating subsections (a)(2), (a)(2)(A), and 
     (a)(2)(B) as subsections (c), (c)(1), and (c)(2), 
     respectively, and indenting appropriately;
       (3) by striking ``(a) Congestion.--'' and all that follows 
     through subsection (a)(1)(B);
       (4) by striking subsection (b); and
       (5) by inserting after the section heading the following:
       ``(a) In General.--The Secretary may authorize a State to 
     proceed with a project authorized under this title--
       ``(1) without the use of Federal funds; and
       ``(2) in accordance with all procedures and requirements 
     applicable to the project other than those procedures and 
     requirements that limit the State to implementation of a 
     project--
       ``(A) with the aid of Federal funds previously apportioned 
     or allocated to the State; or
       ``(B) with obligation authority previously allocated to the 
     State.
       ``(b) Obligation of Federal Share.--The Secretary, on the 
     request of a State and execution of a project agreement, may 
     obligate all or a portion of the Federal share of the project 
     authorized under this section from any category of funds for 
     which the project is eligible.''.
       (b) Obligation and Release of Funds.--Section 118 of title 
     23, United States Code, is amended by striking subsection (d) 
     and inserting the following:
       ``(d) Obligation and Release of Funds.--
       ``(1) In general.--Funds apportioned or allocated to a 
     State for a particular purpose for any

[[Page 838]]

     fiscal year shall be considered to be obligated if a sum 
     equal to the total of the funds apportioned or allocated to 
     the State for that purpose for that fiscal year and previous 
     fiscal years is obligated.
       ``(2) Released funds.--Any funds released by the final 
     payment for a project, or by modifying the project agreement 
     for a project, shall be--
       ``(A) credited to the same class of funds previously 
     apportioned or allocated to the State; and
       ``(B) immediately available for obligation.
       ``(3) Net obligations.--Notwithstanding any other provision 
     of law (including a regulation), obligations recorded against 
     funds made available under this section shall be recorded and 
     reported as net obligations.''.

     SEC. 1805. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS.

       Section 118(c)(1) of title 23, United States Code, is 
     amended--
       (1) by striking ``$50,000,000'' and all that follows 
     through ``2003'' and inserting ``$100,000,000 for each of 
     fiscal years 2004 through 2009''; and
       (2) by striking ``Transportation Equity Act for the 21st 
     Century'' and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003''.

     SEC. 1806. FEDERAL LANDS HIGHWAYS PROGRAM.

       (a) Federal Share Payable.--
       (1) In general.--Section 120(k) of title 23, United States 
     Code, is amended--
       (A) by striking ``Federal-aid highway''; and
       (B) by striking ``section 104'' and inserting ``this title 
     or chapter 53 of title 49''.
       (2) Technical references.--Section 120(l) of title 23, 
     United States Code, is amended by striking ``section 104'' 
     and inserting ``this title or chapter 53 of title 49''.
       (b) Payments to Federal Agencies for Federal-Aid 
     Projects.--Section 132 of title 23, United States Code, is 
     amended--
       (1) by striking the first 2 sentences and inserting the 
     following:
       ``(a) In General.--In a case in which a proposed Federal-
     aid project is to be undertaken by a Federal agency in 
     accordance with an agreement between a State and the Federal 
     agency, the State may--
       ``(1) direct the Secretary to transfer the funds for the 
     Federal share of the project directly to the Federal agency; 
     or
       ``(2) make such deposit with, or payment to, the Federal 
     agency as is required to meet the obligation of the State 
     under the agreement for the work undertaken or to be 
     undertaken by the Federal agency.
       ``(b) Reimbursement.--On execution of a project agreement 
     with a State described in subsection (a), the Secretary may 
     reimburse the State, using any available funds, for the 
     estimated Federal share under this title of the obligation of 
     the State deposited or paid under subsection (a)(2).''; and
       (2) in the last sentence, by striking ``Any sums'' and 
     inserting the following:
       ``(c) Recovery and Crediting of Funds.--Any sums''.
       (c) Allocations.--Section 202 of title 23, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``(a) On October 1'' and 
     all that follows through ``Such allocation'' and inserting 
     the following:
       ``(a) Allocation Based on Need.--
       ``(1) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate sums authorized to be appropriated 
     for the fiscal year for forest development roads and trails 
     according to the relative needs of the various national 
     forests and grassland.
       ``(2) Planning.--The allocation under paragraph (1)'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Allocation for Public Lands Highways.--
       ``(1) Public lands highways.--
       ``(A) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate 33\1/3\ percent of the sums 
     authorized to be appropriated for that fiscal year for public 
     lands highways among those States having unappropriated or 
     unreserved public lands, or nontaxable Indian lands or other 
     Federal reservations, on the basis of need in the States, 
     respectively, as determined by the Secretary, on application 
     of the State transportation departments of the respective 
     States.
       ``(B) Preference.--In making the allocation under 
     subparagraph (A), the Secretary shall give preference to 
     those projects that are significantly impacted by Federal 
     land and resource management activities that are proposed by 
     a State that contains at least 3 percent of the total public 
     land in the United States.
       ``(2) National forest system.--
       ``(A) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate 66\2/3\ percent of the funds 
     authorized to be appropriated for public lands highways for 
     forest highways in accordance with section 134 of the 
     Federal-Aid Highway Act of 1987 (23 U.S.C. 202 note; 101 
     Stat. 173).
       ``(B) Public access to and within national forest system.--
     In making the allocation under subparagraph (A), the 
     Secretary shall give equal consideration to projects that 
     provide access to and within the National Forest System, as 
     identified by the Secretary of Agriculture through--
       ``(i) renewable resource and land use planning; and
       ``(ii) assessments of the impact of that planning on 
     transportation facilities.'';
       (3) in subsection (c)--
       (A) by striking ``(c) On'' and inserting the following:
       ``(c) Park Roads and Parkways.--
       ``(1) In general.--On''; and
       (B) by adding at the end the following:
       ``(2) Priority.--
       ``(A) Definition of qualifying national park.--In this 
     paragraph, the term ``qualifying national park'' means a 
     National Park that is used more than 1,000,000 recreational 
     visitor days per year, based on an average of the 3 most 
     recent years of available data from the National Park 
     Service.
       ``(B) Priority.--Notwithstanding any other provision of 
     law, with respect to funds authorized for park roads and 
     parkways, the Secretary shall give priority in the allocation 
     of funds to projects for highways that--
       ``(i) are located in, or provide access to, a qualifying 
     National Park; and
       ``(ii) were initially constructed before 1940.
       ``(C) Priority conflicts.--If there is a conflict between 
     projects described in subparagraph (B), the Secretary shall 
     give highest priority to projects that--
       ``(i) are in, or that provide access to, parks that are 
     adjacent to a National Park of a foreign country; or
       ``(ii) are located in more than 1 State;'';
       (4) in subsection (d)--
       (A) in paragraph (1)--
       (i) in the paragraph heading, by striking ``1999'' and 
     inserting ``2005''; and
       (ii) by striking ``1999'' and inserting ``2005'';
       (B) in paragraph (2)--
       (i) in the paragraph heading, by striking ``2000'' and 
     inserting ``2005'';
       (ii) in subparagraphs (A), (B), and (D), by striking 
     ``2000'' each place it appears and inserting ``2005'';
       (iii) in subparagraph (B), by striking ``1999'' each place 
     it appears and inserting ``2004''; and
       (iv) by adding at the end the following:
       ``(E) Transferred funds.--
       ``(i) In general.--Not later than 30 days after the date on 
     which funds are made available to the Secretary of the 
     Interior under this paragraph, the funds shall be distributed 
     to, and available for immediate use by, the eligible Indian 
     tribes, in accordance with the formula applicable for each 
     fiscal year.
       ``(ii) Formula.--If the Secretary of the Interior has not 
     promulgated final regulations for the distribution of funds 
     under clause (i) for a fiscal year by the date on which the 
     funds for the fiscal year are required to be distributed 
     under that clause, the Secretary of the Interior shall 
     distribute the funds under clause (i) in accordance with the 
     applicable funding formula for the preceding year.'';
       (C) in paragraph (3)(A)--
       (i) by striking ``under this title'' and inserting ``under 
     this chapter and section 125(e)''; and
       (ii) by inserting ``and the approved Indian reservation 
     road transportation improvement program'' before the period 
     at the end; and
       (D) in paragraph (4)--
       (i) in subparagraph (B)--

       (I) by striking ``(B) Reservation.--Of the amounts'' and 
     all that follows through ``to replace,'' and inserting the 
     following:

       ``(B) Funding.--
       ``(i) Reservation of funds.--Of the amounts authorized to 
     be appropriated for Indian reservation roads for each fiscal 
     year, the Secretary, in cooperation with the Secretary of the 
     Interior, shall reserve not less than $15,000,000 for each of 
     fiscal years 2004 through 2009 to carry out planning, design, 
     engineering, preconstruction, construction, and inspection of 
     projects to replace,''; and

       (II) by adding at the end the following:

       ``(ii) Availability.--Funds made available to carry out 
     this subparagraph shall be available for obligation in the 
     same manner as if the funds were apportioned under chapter 
     1.''; and
       (ii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Approval requirement.--
       ``(i) In general.--Subject to clause (ii), on request by an 
     Indian tribe or the Secretary of the Interior, the Secretary 
     may make funds available under this subsection for 
     preliminary engineering for Indian reservation road bridge 
     projects.
       ``(ii) Construction and construction engineering.--The 
     Secretary may make funds available under clause (i) for 
     construction and construction engineering only after approval 
     by the Secretary of applicable plans, specifications, and 
     estimates.''; and
       (5) by adding at the end the following:
       ``(f) Administration of Indian Reservation Roads.--
     Notwithstanding any other provision of law, for any fiscal 
     year not more than 6 percent of the contract authority 
     amounts made available from the Highway Trust Fund to the 
     Bureau of Indian Affairs under this title shall be used to 
     pay the expenses incurred by the Bureau in administering the 
     Indian reservation roads program (including the 
     administrative expenses relating to individual projects 
     associated with the Indian reservation roads program).''.
       (d) Planning and Agency Coordination.--Section 204 of title 
     23, United States Code, is amended--
       (1) in subsection (a)(1), by inserting ``refuge roads,'' 
     after ``parkways,'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Use of Funds.--
       ``(1) In general.--Funds available for public lands 
     highways, recreation roads, park roads and parkways, forest 
     highways, and Indian reservation roads shall be used by the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency to pay the cost of

[[Page 839]]

     transportation planning, research, engineering, operation and 
     maintenance of transit facilities, and construction of the 
     highways, roads, parkways, forest highways, and transit 
     facilities located on public land, national parks, and Indian 
     reservations.
       ``(2) Contract.--In connection with an activity described 
     in paragraph (1), the Secretary and the Secretary of the 
     appropriate Federal land management agency may enter into a 
     construction contract or other appropriate agreement with--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) an Indian tribe.
       ``(3) Indian reservation roads.--In the case of an Indian 
     reservation road--
       ``(A) Indian labor may be used, in accordance with such 
     rules and regulations as may be promulgated by the Secretary 
     of the Interior, to carry out any construction or other 
     activity described in paragraph (1); and
       ``(B) funds made available to carry out this section may be 
     used to pay bridge preconstruction costs (including planning, 
     design, and engineering).
       ``(4) Federal employment.--No maximum on Federal employment 
     shall be applicable to construction or improvement of Indian 
     reservation roads.
       ``(5) Availability of funds.--Funds available under this 
     section for each class of Federal lands highway shall be 
     available for any kind of transportation project eligible for 
     assistance under this title that is within or adjacent to, or 
     that provides access to, the areas served by the particular 
     class of Federal lands highway.
       ``(6) Reservation of funds.--The Secretary of the Interior 
     may reserve funds from administrative funds of the Bureau of 
     Indian Affairs that are associated with the Indian 
     reservation road program to finance the Indian technical 
     centers authorized under section 504(b).''; and
       (3) in subsection (k)(1)--
       (A) in subparagraph (B)--
       (i) by striking ``(2), (5),'' and inserting ``(2), (3), 
     (5),''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) maintenance of public roads in national fish 
     hatcheries under the jurisdiction of the United States Fish 
     and Wildlife Service;
       ``(E) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within a wildlife refuge; and
       ``(F) maintenance and improvement of recreational trails 
     (except that expenditures on trails under this subparagraph 
     shall not exceed 5 percent of available funds for each fiscal 
     year).''.
       (e) Safety.--
       (1) Allocations.--Section 202 of title 23, United States 
     Code (as amended by subsection (c)(5)), is amended by adding 
     at the end the following:
       ``(g) Safety.--Subject to paragraph (2), on October 1 of 
     each fiscal year, the Secretary shall allocate the sums 
     authorized to be appropriated for the fiscal year for safety 
     as follows:
       ``(1) 12 percent to the Bureau of Reclamation.
       ``(2) 18 percent to the Bureau of Indian Affairs.
       ``(3) 17 percent to the Bureau of Land Management.
       ``(4) 17 percent to the Forest Service.
       ``(5) 7 percent to the United States Fish and Wildlife 
     Service.
       ``(6) 17 percent to the National Park Service.
       ``(7) 12 percent to the Corps of Engineers.''.
       (2) Availability of funds.--Section 203 of title 23, United 
     States Code, is amended by inserting ``safety projects or 
     activities,'' after ``refuge roads,'' each place it appears.
       (3) Use of funding.--Section 204 of title 23, United States 
     Code, is amended by adding at the end the following:
       ``(l) Safety Activities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, funds made available for safety under this title 
     shall be used by the Secretary and the head of the 
     appropriate Federal land management agency only to pay the 
     costs of carrying out--
       ``(A) transportation safety improvement activities;
       ``(B) activities to eliminate high-accident locations;
       ``(C) projects to implement protective measures at, or 
     eliminate, at-grade railway-highway crossings;
       ``(D) collection of safety information;
       ``(E) transportation planning projects or activities;
       ``(F) bridge inspection;
       ``(G) development and operation of safety management 
     systems;
       ``(H) highway safety education programs; and
       ``(I) other eligible safety projects and activities 
     authorized under chapter 4.
       ``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency may enter into contracts or agreements 
     with--
       ``(A) a State;
       ``(B) a political subdivision of a State; or
       ``(C) an Indian tribe.
       ``(3) Exception.--The cost sharing requirements under the 
     Federal Water Project Recreation Act (16 U.S.C. 460l-12 et 
     seq.) shall not apply to funds made available to the Bureau 
     of Reclamation under this subsection.''.
       (f) Recreation Roads.--
       (1) Authorizations.--Section 201 of title 23, United States 
     Code, is amended in the first sentence by inserting 
     ``recreation roads,'' after ``public lands highways,''.
       (2) Allocations.--Section 202 of title 23, United States 
     Code (as amended by subsection (e)(1)), is amended by adding 
     at the end the following:
       ``(h) Recreation Roads.--
       ``(1) In general.--Subject to paragraphs (2) and (3), on 
     October 1 of each fiscal year, the Secretary, after 
     completing the transfer under subsection 204(i), shall 
     allocate the sums authorized to be appropriated for the 
     fiscal year for recreation roads as follows:
       ``(A) 8 percent to the Bureau of Reclamation.
       ``(B) 9 percent to the Corps of Engineers.
       ``(C) 13 percent to the Bureau of Land Management.
       ``(D) 70 percent to the Forest Service.
       ``(2) Allocation within agencies.--Recreation road funds 
     allocated to a Federal agency under paragraph (1) shall be 
     allocated for projects and activities of the Federal agency 
     according to the relative needs of each area served by 
     recreation roads under the jurisdiction of the Federal 
     agency, as indicated in the approved transportation 
     improvement program for each Federal agency.''.
       (3) Availability of funds.--Section 203 of title 23, United 
     States Code, is amended--
       (A) in the first sentence, by inserting ``recreation 
     roads,'' after ``Indian reservation roads,''; and
       (B) in the fourth sentence, by inserting ``, recreation 
     roads,'' after ``Indian roads''.
       (4) Use of funding.--Section 204 of title 23, United States 
     Code (as amended by subsection (e)(3)), is amended by adding 
     at the end the following:
       ``(m) Recreation Roads.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, funds made available for recreation roads under 
     this title shall be used by the Secretary and the Secretary 
     of the appropriate Federal land management agency only to pay 
     the cost of--
       ``(A) maintenance or improvements of existing recreation 
     roads;
       ``(B) maintenance and improvements of eligible projects 
     described in paragraph (1), (2), (3), (5), or (6) of 
     subsection (h) that are located in or adjacent to Federal 
     land under the jurisdiction of--
       ``(i) the Department of Agriculture
       ``(ii) the Department of Defense; or
       ``(iii) the Department of the Interior;
       ``(C) transportation planning and administrative activities 
     associated with those maintenance and improvements; and
       ``(D) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within Federal land described in 
     subparagraph (B).
       ``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency may enter into contracts or agreements 
     with--
       ``(A) a State;
       ``(B) a political subdivision of a State; or
       ``(C) an Indian tribe.
       ``(3) New roads.--No funds made available under this 
     section shall be used to pay the cost of the design or 
     construction of new recreation roads.
       ``(4) Compliance with other environmental laws.--A 
     maintenance or improvement project that is funded under this 
     subsection, and that is consistent with or has been 
     identified in a land use plan for an area under the 
     jurisdiction of a Federal agency, shall not require any 
     additional environmental reviews or assessments under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) if--
       ``(A) the Federal agency that promulgated the land use plan 
     analyzed the specific proposal for the maintenance or 
     improvement project under that Act; and
       ``(B) as of the date on which the funds are to be expended, 
     there are--
       ``(i) no significant changes to the proposal bearing on 
     environmental concerns; and
       ``(ii) no significant new information.
       ``(5) Exception.--The cost sharing requirements under the 
     Federal Water Project Recreation Act (16 U.S.C. 460l-12 et 
     seq.) shall not apply to funds made available to the Bureau 
     of Reclamation under this subsection.''.
       (g) Conforming Amendments.--
       (1) Sections 120(e) and 125(e) of title 23, United States 
     Code, are amended by striking ``public lands highways,'' each 
     place it appears and inserting ``public lands highways, 
     recreation roads,''.
       (2) Sections 120(e), 125(e), 201, 202(a), and 203 of title 
     23, United States Code, are amended by striking ``forest 
     development roads'' each place it appears and inserting 
     ``National Forest System roads''.
       (3) Section 202(e) of title 23, United States Code, is 
     amended by striking ``Refuge System,'' and inserting ``Refuge 
     System and the various national fish hatcheries,''.
       (4) Section 204 of title 23, United States Code, is 
     amended--
       (A) in subsection (a)(1), by striking ``public lands 
     highways,'' and inserting ``public lands highways, recreation 
     roads, forest highways,''; and
       (B) in subsection (i), by striking ``public lands 
     highways'' each place it appears and inserting ``public lands 
     highways, recreation roads, and forest highways''.
       (5) Section 205 of title 23, United States Code, is 
     amended--
       (A) by striking the section heading and inserting the 
     following:

[[Page 840]]



     ``Sec. 205. National Forest System roads and trails'';

     and
       (B) in subsections (a) and (d), by striking ``forest 
     development roads'' each place it appears and inserting 
     ``National Forest System roads''.
       (6) The analysis for chapter 2 of title 23, United States 
     Code, is amended by striking the item relating to section 205 
     and inserting the following:

``205. National Forest System roads and trails.''.

       (7) Section 217(c) of title 23, United States Code, is 
     amended by inserting ``refuge roads,'' after ``Indian 
     reservation roads,''.

     SEC. 1807. EMERGENCY RELIEF.

       Section 125(c)(1) of title 23, United States Code, is 
     amended by striking ``$100,000,000'' and inserting 
     ``$300,000,000''.

     SEC. 1808. HIGHWAY BRIDGE PROGRAM.

       (a) In General.--Section 144 of title 23, United States 
     Code, is amended--
       (1) by striking the section heading and all that follows 
     through subsection (a) and inserting the following:

     ``Sec. 144. Highway bridge program

       ``(a) Congressional Statement.--Congress finds and declares 
     that it is in the vital interest of the United States that a 
     highway bridge program be established to enable States to 
     improve the condition of their bridges through replacement, 
     rehabilitation, and systematic preventative maintenance on 
     highway bridges over waterways, other topographical barriers, 
     other highways, or railroads at any time at which the States 
     and the Secretary determine that a bridge is unsafe because 
     of structural deficiencies, physical deterioration, or 
     functional obsolescence.'';
       (2) by striking subsection (d) and inserting the following:
       ``(d) Participation in Program.--
       ``(1) In general.--On application by a State to the 
     Secretary for assistance in replacing or rehabilitating a 
     highway bridge that has been determined to be eligible for 
     replacement or rehabilitation under subsection (b) or (c), 
     the Secretary may approve Federal participation in--
       ``(A) replacing the bridge with a comparable bridge; or
       ``(B) rehabilitating the bridge.
       ``(2) Specific kinds of rehabilitation.--On application by 
     a State to the Secretary for assistance in painting, seismic 
     retrofit, or preventative maintenance of, or installation of 
     scour countermeasures or applying calcium magnesium acetate, 
     sodium acetate/formate, or other environmentally acceptable, 
     minimally corrosive anti-icing and de-icing compositions to, 
     the structure of a highway bridge, the Secretary may approve 
     Federal participation in the painting, seismic retrofit, or 
     preventative maintenance of, or installation of scour 
     countermeasures or application of acetate or sodium acetate/
     formate or such anti-icing or de-icing composition to, the 
     structure.
       ``(3) Eligibility.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall determine the eligibility of highway 
     bridges for replacement or rehabilitation for each State 
     based on the number of unsafe highway bridges in the State.
       ``(B) Preventative maintenance.--A State may carry out a 
     project for preventative maintenance on a bridge, seismic 
     retrofit of a bridge, or installation of scour 
     countermeasures to a bridge under this section without regard 
     to whether the bridge is eligible for replacement or 
     rehabilitation under this section.'';
       (3) in subsection (e)--
       (A) in the third sentence, by striking ``square footage'' 
     and inserting ``area'';
       (B) in the fourth sentence--
       (i) by striking ``by the total cost of any highway bridges 
     constructed under subsection (m) in such State, relating to 
     replacement of destroyed bridges and ferryboat services, 
     and,''; and
       (ii) by striking ``1997'' and inserting ``2003''; and
       (C) in the seventh sentence, by striking ``the Federal-aid 
     primary system'' and inserting ``Federal-aid highways'';
       (4) by striking subsections (f) and (g) and inserting the 
     following:
       ``(f) Set Asides.--
       ``(1) Discretionary bridge program.--
       ``(A) In general.--Of the amounts authorized to be 
     appropriated to carry out the bridge program under this 
     section for each of fiscal years 2004 through 2009, all but 
     $150,000,000 shall be apportioned as provided in subsection 
     (e).
       ``(B) Availability.--The $150,000,000 referred to in 
     subparagraph (A) shall be available at the discretion of the 
     Secretary, except that not to exceed $25,000,000 of that 
     amount shall be available only for projects for the seismic 
     retrofit of bridges.
       ``(C) Set asides.--For fiscal year 2004, the Secretary 
     shall provide--
       ``(i) $50,000,000 to the State of Nevada for construction 
     of a replacement of the federally-owned bridge over the 
     Hoover Dam in the Lake Mead National Recreation Area; and
       ``(ii) $50,000,000 to the State of Missouri for 
     construction of a structure over the Mississippi River to 
     connect the city of St. Louis, Missouri, to the State of 
     Illinois.
       ``(2) Off-system bridges.--
       ``(A) In general.--Not less than 15 percent of the amount 
     apportioned to each State in each of fiscal years 2004 
     through 2009 shall be expended for projects to replace, 
     rehabilitate, perform systematic preventative maintenance or 
     seismic retrofit, or apply calcium magnesium acetate, sodium 
     acetate/formate, or other environmentally acceptable, 
     minimally corrosive anti-icing and de-icing compositions or 
     install scour countermeasures to highway bridges located on 
     public roads, other than those on a Federal-aid highway.
       ``(B) Reduction of expenditures.--The Secretary, after 
     consultation with State and local officials, may, with 
     respect to the State, reduce the requirement for expenditure 
     for bridges not on a Federal-aid highway if the Secretary 
     determines that the State has inadequate needs to justify the 
     expenditure.'';
       (5) in subsection (i)--
       (A) in paragraph (3), by striking ``and'';
       (B) in paragraph (4), by striking the period at the end and 
     inserting ``; and'';
       (C) by striking ``Such reports'' and all that follows 
     through ``to Congress.''; and
       (D) by adding at the end the following:
       ``(5) biennially submit such reports as are required under 
     this subsection to the appropriate committees of Congress 
     simultaneously with the report required by section 502(g).'';
       (6) in the first sentence of subsection (n), by striking 
     ``all standards'' and inserting ``all general engineering 
     standards'';
       (7) in subsection (o)--
       (A) in paragraph (3)--
       (i) by striking ``title (including this section)'' and 
     inserting ``section''; and
       (ii) by inserting ``200 percent of'' after ``shall not 
     exceed''; and
       (B) in paragraph (4)(B)--
       (i) in the second sentence, by inserting ``200 percent of'' 
     after ``not to exceed''; and
       (ii) in the last sentence, by striking ``title'' and 
     inserting ``section'';
       (8) by redesignating subsections (h) through (q) as 
     subsections (g) through (p), respectively; and
       (9) by adding at the end the following:
       ``(q) Federal Share.--The Federal share of the cost of a 
     project payable from funds made available to carry out this 
     section shall be the share applicable under section 120(b), 
     as adjusted under subsection (d) of that section.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 144 and inserting the 
     following:

``144. Highway bridge program.''.

     SEC. 1809. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1702(a)), is 
     amended by adding at the end the following:

     ``Sec. 170. Appalachian development highway system

       ``(a) Apportionment.--
       ``(1) In general.--The Secretary shall apportion funds made 
     available under section 1101(a)(7) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 for 
     fiscal years 2004 through 2009 among States based on the 
     latest available estimate of the cost to construct highways 
     and access roads for the Appalachian development highway 
     system program prepared by the Appalachian Regional 
     Commission under section 14501 of title 40.
       ``(2) Availability.--Funds described in paragraph (1) shall 
     be available to construct highways and access roads under 
     chapter 145 of title 40.
       ``(b) Applicability of Title.--Funds made available under 
     section 1101(a)(7) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003 for the 
     Appalachian development highway system shall be available for 
     obligation in the same manner as if the funds were 
     apportioned under this chapter, except that--
       ``(1) the Federal share of the cost of any project under 
     this section shall be determined in accordance with subtitle 
     IV of title 40; and
       ``(2) the funds shall remain available until expended.''.
       (b) Conforming Amendments.--
       (1) Use of toll credits.--Section 120(j)(1) of title 23, 
     United States Code is amended by inserting ``and the 
     Appalachian development highway system program under subtitle 
     IV of title 40'' after ``(other than the emergency relief 
     program authorized by section 125''.
       (2) Analysis.--The analysis of chapter 1 of title 23, 
     United States Code (as amended by section 1702(b)), is 
     amended by adding at the end the following:

``170. Appalachian development highway system.''.

     SEC. 1810. MULTISTATE CORRIDOR PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by 1809(a)), is amended by 
     adding at the end the following:

     ``Sec. 171. Multistate corridor program

       ``(a) Establishment and Purpose.--The Secretary shall carry 
     out a program to--
       ``(1) support and encourage multistate transportation 
     planning and development; and
       ``(2) facilitate transportation decisionmaking and 
     coordinate project delivery involving multistate corridors.
       ``(b) Eligible Recipients.--A State transportation 
     department and a metropolitan planning organization may 
     receive and administer funds provided under this section.
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under this program for multistate highway and 
     multimodal planning studies and construction.
       ``(d) Other Provisions Regarding Eligibility.--
       ``(1) Studies.--All studies funded under this program shall 
     be consistent with the continuing,

[[Page 841]]

     cooperative, and comprehensive planning processes required by 
     sections 134 and 135.
       ``(2) Construction.--All construction funded under this 
     program shall be consistent with section 133(b)(1).
       ``(e) Selection Criteria.--The Secretary shall select 
     studies and projects to be carried out under the program 
     based on--
       ``(1) the existence and significance of signed and binding 
     multijurisdictional agreements;
       ``(2) endorsement of the study or project by applicable 
     elected State and local representatives;
       ``(3) prospects for early completion of the study or 
     project; or
       ``(4) whether the projects to be studied or constructed are 
     located on corridors identified by section 1105(c) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 
     (Public Law 102-240; 105 Stat. 2032).
       ``(f) Program Priorities.--In administering the program, 
     the Secretary shall--
       ``(1) encourage and enable States and other jurisdictions 
     to work together to develop plans for multimodal and 
     multijurisdictional transportation decisionmaking; and
       ``(2) give priority to studies or projects that emphasize 
     multimodal planning, including planning for operational 
     improvements that--
       ``(A) increase--
       ``(i) mobility;
       ``(ii) freight productivity;
       ``(iii) access to marine or inland ports;
       ``(iv) safety and security; and
       ``(v) reliability; and
       ``(B) enhance the environment.
       ``(g) Federal Share.--The Federal share of the cost of a 
     study or project carried out under the program, using funds 
     from all Federal sources, shall be 80 percent.
       ``(h) Applicability.--Funds authorized to be appropriated 
     under section 1101(10) of the Safe, Accountable, Flexible, 
     and Efficient Transportation Equity Act of 2003 to carry out 
     this section shall be available for obligation in the same 
     manner as if the funds were apportioned under this 
     chapter.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1810(b)) is amended by adding at the end the 
     following:

``171. Multistate corridor program.''.

     SEC. 1811. BORDER PLANNING, OPERATIONS, TECHNOLOGY, AND 
                   CAPACITY PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1810(a)), is 
     amended by adding at the end the following:

     ``Sec. 172. Border planning, operations, technology, and 
       capacity program

       ``(a) Definitions.--In this section:
       ``(1) Border state.--The term `border State' means any of 
     the States of Alaska, Arizona, California, Idaho, Maine, 
     Michigan, Minnesota, Montana, New Hampshire, New Mexico, New 
     York, North Dakota, Texas, Vermont, and Washington.
       ``(2) Program.--The term `program' means the border 
     planning, operations, technology, and capacity program 
     established under subsection (b).
       ``(b) Establishment and Purpose.--The Secretary shall 
     establish and carry out a border planning, operations, 
     technology, and capacity improvement program to support 
     coordination and improvement in bi-national transportation 
     planning, operations, efficiency, information exchange, 
     safety, and security at the international borders of the 
     United States with Canada and Mexico.
       ``(c) Eligible Recipients.--State transportation 
     departments and metropolitan planning organizations at or 
     near an international land border in a border State may 
     receive and administer funds allocated under the program.
       ``(d) Eligible Activities.--
       ``(1) In general.--The Secretary shall make allocations 
     under the program for projects to carry out eligible 
     activities described in paragraph (2) at or near 
     international land borders in border States.
       ``(2) Eligible activities.--The eligible activities 
     referred to in paragraph (1) are--
       ``(A) highway and multimodal planning or environmental 
     studies;
       ``(B) cross-border port of entry and safety inspection 
     improvements, including operational enhancements and 
     technology applications;
       ``(C) technology and information exchange activities; and
       ``(D) right-of-way acquisition, design, and construction, 
     as needed--
       ``(i) to implement the enhancements or applications 
     described in subparagraphs (B) and (C);
       ``(ii) to decrease air pollution emissions from vehicles or 
     inspection facilities at border crossings; or
       ``(iii) to increase highway capacity at or near 
     international borders.
       ``(e) Other Provisions Regarding Eligibility.--
       ``(1) In general.--Each project funded under the program 
     shall be carried out in accordance with the continuing, 
     cooperative, and comprehensive planning processes required by 
     sections 134 and 135.
       ``(2) Regionally significant projects.--To be funded under 
     the program, a regionally significant project shall be 
     included on the applicable transportation plan and program 
     required by sections 134 and 135.
       ``(f) Selection Criteria.--The Secretary shall select 
     projects to be carried out under the program based on--
       ``(1) expected benefits, including air quality benefits, of 
     the project in relation to the cost of the project;
       ``(2) prospects for early completion of the project;
       ``(3) endorsement of the project by formally constituted 
     bi-national organizations with Federal and State or 
     provincial representation;
       ``(4) the existence and significance of signed and binding 
     multijurisdictional agreements;
       ``(5) contributions, in amounts at least equal to required 
     minimums, of--
       ``(A) Federal funds made available for other programs under 
     this title; and
       ``(B) Federal funds made available under a provision of law 
     other than this title; and
       ``(6) the extent to which the benefits of the project are 
     multimodal.
       ``(g) Program Priorities.--In administering the program, 
     the Secretary shall give priority to projects that 
     emphasize--
       ``(1) multimodal planning;
       ``(2) improvements in infrastructure; and
       ``(3) operational improvements that--
       ``(A) increase safety, security, freight capacity, or 
     highway access to rail, marine, and air services; and
       ``(B) enhance the environment.
       ``(h) Federal Share.--The Federal share of the cost of a 
     project carried out under the program shall be 80 percent.
       ``(i) Obligation.--Funds made available under section 
     1101(11) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003 to carry out the program 
     shall be available for obligation in the same manner as if 
     the funds were apportioned under this chapter.
       ``(j) Information Exchange.--No individual project the 
     scope of work of which is limited to information exchange 
     shall receive an allocation under the program in an amount 
     that exceeds $500,000 for any fiscal year.
       ``(k) Projects in Canada or Mexico.--A project in Canada or 
     Mexico, proposed by a border State to directly and 
     predominantly facilitate cross-border vehicle and commercial 
     cargo movements at an international gateway or port of entry 
     into the border region of the State, may be constructed using 
     funds made available under the program if, before obligation 
     of those funds, Canada or Mexico, or the political 
     subdivision of Canada or Mexico that is responsible for the 
     operation of the facility to be constructed, provides 
     assurances satisfactory to the Secretary that any facility 
     constructed under this subsection will be--
       ``(1) constructed in accordance with standards equivalent 
     to applicable standards in the United States; and
       ``(2) properly maintained and used over the useful life of 
     the facility for the purpose for which the Secretary 
     allocated funds to the project.
       ``(l) Transfer of Funds to the General Services 
     Administration.--
       ``(1) State funds.--At the request of a border State, funds 
     made available under the program may be transferred to the 
     General Services Administration for the purpose of funding 1 
     or more specific projects if--
       ``(A) the Secretary determines, after consultation with the 
     State transportation department of the border State, that the 
     General Services Administration should carry out the project; 
     and
       ``(B) the General Services Administration agrees to accept 
     the transfer of, and to administer, those funds.
       ``(2) Non-federal share.--
       ``(A) In general.--A border State that makes a request 
     under paragraph (1) shall provide directly to the General 
     Services Administration, for each project covered by the 
     request, the non-Federal share of the cost of each project 
     described in subsection (h).
       ``(B) No augmentation of appropriations.--Funds provided by 
     a border State under subparagraph (A)--
       ``(i) shall not be considered to be an augmentation of the 
     appropriations made available to the General Services 
     Administration; and
       ``(ii) shall be--

       ``(I) administered in accordance with the procedures of the 
     General Services Administration; but
       ``(II) available for obligation in the same manner as if 
     the funds were apportioned under this chapter.

       ``(C) Obligation authority.--Obligation authority shall be 
     transferred to the General Services Administration in the 
     same manner and amount as the funds provided for projects 
     under subparagraph (A).
       ``(3) Direct transfer of authorized funds.--
       ``(A) In general.--In addition to allocations to States and 
     metropolitan planning organizations under subsection (c), the 
     Secretary may transfer funds made available to carry out this 
     section to the General Services Administration for 
     construction of transportation infrastructure projects at or 
     near the border in border States, if--
       ``(i) the Secretary determines that the transfer is 
     necessary to effectively carry out the purposes of this 
     program; and
       ``(ii) the General Services Administration agrees to accept 
     the transfer of, and to administer, those funds.
       ``(B) No augmentation of appropriations.--Funds transferred 
     by the Secretary under subparagraph (A)--
       ``(i) shall not be considered to be an augmentation of the 
     appropriations made available to the General Services 
     Administration; and
       ``(ii) shall be--

       ``(I) administered in accordance with the procedures of the 
     General Services Administration; but

[[Page 842]]

       ``(II) available for obligation in the same manner as if 
     the funds were apportioned under this chapter.

       ``(C) Obligation authority.--Obligation authority shall be 
     transferred to the General Services Administration in the 
     same manner and amount as the funds transferred under 
     subparagraph (A).
       ``(D) Nonapplicability of certain provision.--Section 120 
     shall not apply to the transfer of funds under this 
     paragraph.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1810(b)), is amended by adding at the end the 
     following:

``172. Border planning, operations, and technology program.''.

     SEC. 1812. PUERTO RICO HIGHWAY PROGRAM.

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

     ``Sec. 173. Puerto Rico highway program

       ``(a) In General.--The Secretary shall allocate funds 
     authorized by section 1101(a)(15) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 for 
     each of fiscal years 2004 through 2009 to the Commonwealth of 
     Puerto Rico to carry out a highway program in the 
     Commonwealth.
       ``(b) Applicability of Title.--
       ``(1) In general.--Amounts made available by section 
     1101(a)(15) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003 shall be available for 
     obligation in the same manner as if such funds were 
     apportioned under this chapter.
       ``(2) Limitation on obligations.--The amounts shall be 
     subject to any limitation on obligations for Federal-aid 
     highway and highway safety construction programs.
       ``(c) Treatment of Funds.--Amounts made available to carry 
     out this section for a fiscal year shall be administered as 
     follows:
       ``(1) Apportionment.--For purposes of this section, the 
     amounts shall be treated as being apportioned to Puerto Rico 
     under sections 104(b), 144, and 206, for each program funded 
     under those sections in an amount determined by multiplying--
       ``(A) the aggregate of the amounts for the fiscal year; by
       ``(B) the ratio that--
       ``(i) the amount of funds apportioned to Puerto Rico for 
     each such program for fiscal year 2003; bears to
       ``(ii) the total amount of funds apportioned to Puerto Rico 
     for all such programs for fiscal year 2003.
       ``(2) Penalty.--The amounts treated as being apportioned to 
     Puerto Rico under each section referred to in paragraph (1) 
     shall be deemed to be required to be apportioned to Puerto 
     Rico under that section for purposes of the imposition of any 
     penalty under this title and title 49.
       ``(3) Effect on allocations and apportionments.--Subject to 
     paragraph (2), nothing in this section affects any allocation 
     under section 105 and any apportionment under sections 104 
     and 144.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1811(b)), is amended by adding at the end the 
     following:

``173. Puerto Rico highway program.''.

     SEC. 1813. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1812(a)), is 
     amended by adding at the end the following:

     ``Sec. 174. National historic covered bridge preservation

       ``(a) Definition of Historic Covered Bridge.--In this 
     section, the term `historic covered bridge' means a covered 
     bridge that is listed or eligible for listing on the National 
     Register of Historic Places.
       ``(b) Historic Covered Bridge Preservation.--Subject to the 
     availability of appropriations, the Secretary shall--
       ``(1) collect and disseminate information on historic 
     covered bridges;
       ``(2) conduct educational programs relating to the history 
     and construction techniques of historic covered bridges;
       ``(3) conduct research on the history of historic covered 
     bridges; and
       ``(4) conduct research on, and study techniques for, 
     protecting historic covered bridges from rot, fire, natural 
     disasters, or weight-related damage.
       ``(c) Grants.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall make a grant to a State 
     that submits an application to the Secretary that 
     demonstrates a need for assistance in carrying out 1 or more 
     historic covered bridge projects described in paragraph (2).
       ``(2) Eligible projects.--A grant under paragraph (1) may 
     be made for a project--
       ``(A) to rehabilitate or repair a historic covered bridge; 
     or
       ``(B) to preserve a historic covered bridge, including 
     through--
       ``(i) installation of a fire protection system, including a 
     fireproofing or fire detection system and sprinklers;
       ``(ii) installation of a system to prevent vandalism and 
     arson; or
       ``(iii) relocation of a bridge to a preservation site.
       ``(3) Authenticity requirements.--A grant under paragraph 
     (1) may be made for a project only if--
       ``(A) to the maximum extent practicable, the project--
       ``(i) is carried out in the most historically appropriate 
     manner; and
       ``(ii) preserves the existing structure of the historic 
     covered bridge; and
       ``(B) the project provides for the replacement of wooden 
     components with wooden components, unless the use of wood is 
     impracticable for safety reasons.
       ``(4) Federal share.--The Federal share of the cost of a 
     project carried out with a grant under this subsection shall 
     be 80 percent.
       ``(d) Funding.--There is authorized to be appropriated to 
     carry out this section $14,000,000 for each of fiscal years 
     2004 through 2009, to remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1812(b)), is amended by adding at the end the 
     following:

``174. National historic covered bridge preservation.''.

     SEC. 1814. TRANSPORTATION AND COMMUNITY AND SYSTEM 
                   PRESERVATION PILOT PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1813(a)), is 
     amended by adding at the end the following:

     ``Sec. 175. Transportation and community and system 
       preservation pilot program

       ``(a) Establishment.--The Secretary shall establish a 
     comprehensive program to facilitate the planning, 
     development, and implementation of strategies by States, 
     metropolitan planning organizations, federally-recognized 
     Indian tribes, and local governments to integrate 
     transportation, community, and system preservation plans and 
     practices that address the goals described in subsection (b).
       ``(b) Goals.--The goals of the program are--
       ``(1) to improve the efficiency of the transportation 
     system in the United States;
       ``(2) to reduce the impacts of transportation on the 
     environment;
       ``(3) reduce the need for costly future investments in 
     public infrastructure;
       ``(4) to provide efficient access to jobs, services, and 
     centers of trade; and
       ``(5) to examine development patterns, and to identify 
     strategies, to encourage private sector development patterns 
     that achieve the goals identified in paragraphs (1) through 
     (4).
       ``(c) Allocation of Funds for Implementation.--
       ``(1) In general.--The Secretary shall allocate funds made 
     available to carry out this subsection to States, 
     metropolitan planning organizations, and local governments to 
     carry out projects to address transportation efficiency and 
     community and system preservation.
       ``(2) Criteria.--In allocating funds made available to 
     carry out this subsection, the Secretary shall give priority 
     to applicants that--
       ``(A) have instituted preservation or development plans and 
     programs that--
       ``(i) meet the requirements of this title and chapter 53 of 
     title 49, United States Code; and
       ``(ii)(I) are coordinated with State and local adopted 
     preservation or development plans;
       ``(II) are intended to promote cost-effective and strategic 
     investments in transportation infrastructure that minimize 
     adverse impacts on the environment; or
       ``(III) are intended to promote innovative private sector 
     strategies.
       ``(B) have instituted other policies to integrate 
     transportation and community and system preservation 
     practices, such as--
       ``(i) spending policies that direct funds to high-growth 
     areas;
       ``(ii) urban growth boundaries to guide metropolitan 
     expansion;
       ``(iii) `green corridors' programs that provide access to 
     major highway corridors for areas targeted for efficient and 
     compact development; or
       ``(iv) other similar programs or policies as determined by 
     the Secretary;
       ``(C) have preservation or development policies that 
     include a mechanism for reducing potential impacts of 
     transportation activities on the environment;
       ``(D) examine ways to encourage private sector investments 
     that address the purposes of this section; and
       ``(E) propose projects for funding that address the 
     purposes described in subsection (b)(2).
       ``(3) Equitable distribution.--In allocating funds to carry 
     out this subsection, the Secretary shall ensure the equitable 
     distribution of funds to a diversity of populations and 
     geographic regions.
       ``(4) Use of allocated funds.--
       ``(A) In general.--An allocation of funds made available to 
     carry out this subsection shall be used by the recipient to 
     implement the projects proposed in the application to the 
     Secretary.
       ``(B) Types of projects.--The allocation of funds shall be 
     available for obligation for--
       ``(i) any project eligible for funding under this title or 
     chapter 53 of title 49, United States Code; or
       ``(ii) any other activity relating to transportation and 
     community and system preservation that the Secretary 
     determines to be appropriate, including corridor preservation 
     activities that are necessary to implement--

       ``(I) transit-oriented development plans;
       ``(II) traffic calming measures; or
       ``(III) other coordinated transportation and community and 
     system preservation practices.

       ``(d) Funding.--
       ``(1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $50,000,000 for each of 
     fiscal years 2004 through 2009.

[[Page 843]]

       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under this 
     chapter.''.
       (b) Eligible Projects.--Section 133(b) of title 23, United 
     States Code (as amended by section 1701(a)), is amended by 
     adding at the end the following:
       ``(18) Transportation and community system preservation to 
     facilitate the planning, development, and implementation of 
     strategies of metropolitan planning organizations and local 
     governments to integrate transportation, community, and 
     system preservation plans and practices that address the 
     following:
       ``(A) Improvement of the efficiency of the transportation 
     system in the United States.
       ``(B) Reduction of the impacts of transportation on the 
     environment.
       ``(C) Reduction of the need for costly future investments 
     in public infrastructure.
       ``(D) Provision of efficient access to jobs, services, and 
     centers of trade.
       ``(E) Examination of development patterns, and 
     identification of strategies to encourage private sector 
     development patterns, that achieve the goals identified in 
     subparagraphs (A) through (D).
       ``(19) Projects relating to intersections, including 
     intersections--
       ``(A) that--
       ``(i) have disproportionately high accident rates;
       ``(ii) have high levels of congestion, as evidenced by--

       ``(I) interrupted traffic flow at the intersection; and
       ``(II) a level of service rating, issued by the 
     Transportation Research Board of the National Academy of 
     Sciences in accordance with the Highway Capacity Manual, that 
     is not better than `F' during peak travel hours; and

       ``(iii) are directly connected to or located on a Federal-
     aid highway; and
       ``(B) improvements that are approved in the regional plan 
     of the appropriate local metropolitan planning 
     organization.''.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1813(b)), is amended by adding at the end the 
     following:

``175. Transportation and community and system preservation pilot 
              program.''.

     SEC. 1815. TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS.

       Section 204 of title 23, United States Code (as amended by 
     section 1806(f)(4)), is amended by adding at the end the 
     following:
       ``(n) Tribal-State Road Maintenance Agreements.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, regulation, policy, or guideline, an Indian tribe and a 
     State may enter into a road maintenance agreement under which 
     an Indian tribe assumes the responsibilities of the State 
     for--
       ``(A) Indian reservation roads; and
       ``(B) roads providing access to Indian reservation roads.
       ``(2) Tribal-state agreements.--Agreements entered into 
     under paragraph (1)--
       ``(A) shall be negotiated between the State and the Indian 
     tribe; and
       ``(B) shall not require the approval of the Secretary.
       ``(3) Annual report.--Effective beginning with fiscal year 
     2004, the Secretary shall prepare and submit to Congress an 
     annual report that identifies--
       ``(A) the Indian tribes and States that have entered into 
     agreements under paragraph (1);
       ``(B) the number of miles of roads for which Indian tribes 
     have assumed maintenance responsibilities; and
       ``(C) the amount of funding transferred to Indian tribes 
     for the fiscal year under agreements entered into under 
     paragraph (1).''.

     SEC. 1816. FOREST HIGHWAYS.

       Section 204 of title 23, United States Code (as amended by 
     section 1815), is amended by adding at the end the following:
       ``(o) Forest Highways.--Of the amounts made available for 
     forest highways, $15,000,000 for each fiscal year shall be 
     used to repair culverts and bridges on forest highways to--
       ``(1) facilitate appropriate fish passage and ensure 
     reasonable flows; and
       ``(2) maintain and remove such culverts and bridges as 
     appropriate.''.

     SEC. 1817. TERRITORIAL HIGHWAY PROGRAM.

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

     ``Sec. 215. Territorial highway program

       ``(a) Definitions.--In this section:
       ``(1) Program.--The term `program' means the territorial 
     highway program established under subsection (b).
       ``(2) Territory.--The term `territory' means the any of the 
     following territories of the United States:
       ``(A) American Samoa.
       ``(B) The Commonwealth of the Northern Mariana Islands.
       ``(C) Guam.
       ``(D) The United States Virgin Islands.
       ``(b) Program.--
       ``(1) In general.--Recognizing the mutual benefits that 
     will accrue to the territories and the United States from the 
     improvement of highways in the territories, the Secretary may 
     carry out a program to assist each territorial government in 
     the construction and improvement of a system of arterial and 
     collector highways, and necessary inter-island connectors, 
     that is--
       ``(A) designated by the Governor or chief executive officer 
     of each territory; and
       ``(B) approved by the Secretary.
       ``(2) Federal assistance.--The Secretary shall provide 
     Federal financial assistance to territories under this 
     section in accordance with section 120(h).
       ``(c) Technical Assistance.--
       ``(1) In general.--To continue a long-range highway 
     development program, the Secretary may provide technical 
     assistance to the governments of the territories to enable 
     the territories to, on a continuing basis--
       ``(A) engage in highway planning;
       ``(B) conduct environmental evaluations;
       ``(C) administer right-of-way acquisition and relocation 
     assistance programs; and
       ``(D) design, construct, operate, and maintain a system of 
     arterial and collector highways, including necessary inter-
     island connectors.
       ``(2) Form and terms of assistance.--Technical assistance 
     provided under paragraph (1), and the terms for the sharing 
     of information among territories receiving the technical 
     assistance, shall be included in the agreement required by 
     subsection (e).
       ``(d) Nonapplicability of Certain Provisions.--
       ``(1) In general.--Except to the extent that provisions of 
     chapter 1 are determined by the Secretary to be inconsistent 
     with the needs of the territories and the intent of the 
     program, chapter 1 (other than provisions of chapter 1 
     relating to the apportionment and allocation of funds) shall 
     apply to funds authorized to be appropriated for the program.
       ``(2) Applicable provisions.--The specific sections of 
     chapter 1 that are applicable to each territory, and the 
     extent of the applicability of those section, shall be 
     identified in the agreement required by subsection (e).
       ``(e) Agreement.--
       ``(1) In general.--Except as provided in paragraph (3), 
     none of the funds made available for the program shall be 
     available for obligation or expenditure with respect to any 
     territory until the Governor or chief executive officer of 
     the territory enters into a new agreement with the Secretary 
     (which new agreement shall be entered into not later than 1 
     year after the date of enactment of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003), 
     providing that the government of the territory shall--
       ``(A) implement the program in accordance with applicable 
     provisions of chapter 1 and subsection (d);
       ``(B) design and construct a system of arterial and 
     collector highways, including necessary inter-island 
     connectors, in accordance with standards that are--
       ``(i) appropriate for each territory; and
       ``(ii) approved by the Secretary;
       ``(C) provide for the maintenance of facilities constructed 
     or operated under this section in a condition to adequately 
     serve the needs of present and future traffic; and
       ``(D) implement standards for traffic operations and 
     uniform traffic control devices that are approved by the 
     Secretary.
       ``(2) Technical assistance.--The new agreement required by 
     paragraph (1) shall--
       ``(A) specify the kind of technical assistance to be 
     provided under the program;
       ``(B) include appropriate provisions regarding information 
     sharing among the territories; and
       ``(C) delineate the oversight role and responsibilities of 
     the territories and the Secretary.
       ``(3) Review and revision of agreement.--The new agreement 
     entered into under paragraph (1) shall be reevaluated and, as 
     necessary, revised, at least every 2 years.
       ``(4) Existing agreements.--With respect to an agreement 
     between the Secretary and the Governor or chief executive 
     officer of a territory that is in effect as of the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003--
       ``(A) the agreement shall continue in force until replaced 
     by a new agreement in accordance with paragraph (1); and
       ``(B) amounts made available for the program under the 
     agreement shall be available for obligation or expenditure so 
     long as the agreement, or a new agreement under paragraph 
     (1), is in effect.
       ``(f) Permissible Uses of Funds.--
       ``(1) In general.--Funds made available for the program may 
     be used only for the following projects and activities 
     carried out in a territory:
       ``(A) Eligible surface transportation program projects 
     described in section 133(b).
       ``(B) Cost-effective, preventive maintenance consistent 
     with section 116.
       ``(C) Ferry boats, terminal facilities, and approaches, in 
     accordance with subsections (b) and (c) of section 129.
       ``(D) Engineering and economic surveys and investigations 
     for the planning, and the financing, of future highway 
     programs.
       ``(E) Studies of the economy, safety, and convenience of 
     highway use.
       ``(F) The regulation and equitable taxation of highway use.
       ``(G) Such research and development as are necessary in 
     connection with the planning, design, and maintenance of the 
     highway system.
       ``(2) Prohibition on use of funds for routine 
     maintenance.--None of the funds made available for the 
     program shall be obligated or expended for routine 
     maintenance.
       ``(g) Location of Projects.--Territorial highway projects 
     (other than those described in paragraphs (1), (3), and (4) 
     of section 133(b)) may not be undertaken on roads 
     functionally classified as local.''.

[[Page 844]]

       (b) Conforming Amendments.--
       (1) Eligible projects.--Section 103(b)(6) of title 23, 
     United States Code, is amended by striking subparagraph (P) 
     and inserting the following:
       ``(P) Projects eligible for assistance under the 
     territorial highway program under section 215.''.
       (2) Funding.--Section 104(b)(1)(A) of title 23, United 
     States Code, is amended by striking ``to the Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of Northern 
     Mariana Islands'' and inserting ``for the territorial highway 
     program authorized under section 215''.
       (3) Analysis.--The analysis for chapter 2 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 215 and inserting the following:

``215. Territorial highway program.''.

     SEC. 1818. MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY 
                   DEPLOYMENT PROGRAM.

       Section 322 of title 23, United States Code, is amended--
       (1) in subsection (c)--
       (A) by striking ``Not later than'' and inserting the 
     following:
       ``(1) Initial solicitation.--Not later than''; and
       (B) by adding at the end the following:
       ``(2) Additional solicitation.--Not later than 1 year after 
     the date of enactment of this paragraph, the Secretary may 
     solicit additional applications from States, or authorities 
     designated by 1 or more States, for financial assistance 
     authorized by subsection (b) for planning, design, and 
     construction of eligible MAGLEV projects.'';
       (2) in subsection (e), by striking ``Prior to soliciting 
     applications, the Secretary'' and inserting ``The 
     Secretary'';
       (3) in subsection (h)--
       (A) in subparagraph (A), by striking clause (i) and 
     inserting the following:
       ``(i) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $15,000,000 for each of 
     fiscal years 2004 through 2009.''; and
       (B) in subparagraph (B), by striking clause (i) and 
     inserting the following:
       ``(i) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section--

       ``(I) $375,000,000 for fiscal year 2004;
       ``(II) $400,000,000 for fiscal year 2005;
       ``(III) $415,000,000 for fiscal year 2006;
       ``(IV) $425,000,000 for fiscal year 2007;
       ``(V) $435,000,000 for fiscal year 2008; and
       ``(VI) $450,000,000 for fiscal year 2009.''; and

       (4) by striking subsection (i).

     SEC. 1819. DONATIONS AND CREDITS.

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

     SEC. 1820. DISADVANTAGED BUSINESS ENTERPRISES.

       (a) General Rule.--Except to the extent that the Secretary 
     determines otherwise, not less than 10 percent of the amounts 
     made available for any program under titles I, III, and V of 
     this Act shall be expended with small business concerns owned 
     and controlled by socially and economically disadvantaged 
     individuals.
       (b) Definitions.--In this section:
       (1) Small business concern.--
       (A) In general.--The term ``small business concern'' has 
     the meaning given the term under section 3 of the Small 
     Business Act (15 U.S.C. 632).
       (B) Exclusion.--The term ``small business concern'' does 
     not include any concern or group of concerns controlled by 
     the same socially and economically disadvantaged individual 
     or individuals that has average annual gross receipts over 
     the preceding 3 fiscal years in excess of $17,420,000, as 
     adjusted by the Secretary for inflation.
       (2) Socially and economically disadvantaged individuals.--
     The term ``socially and economically disadvantaged 
     individuals'' has the meaning given the term under section 
     8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
     relevant subcontracting regulations promulgated under that 
     section, except that women shall be presumed to be socially 
     and economically disadvantaged individuals for the purposes 
     of this section.
       (c) Annual Listing of Disadvantaged Business Enterprises.--
     Each State shall annually survey and compile a list of the 
     small business concerns referred to in subsection (a) and the 
     location of such concerns in the State and notify the 
     Secretary, in writing, of the percentage of such concerns 
     which are controlled by women, by socially and economically 
     disadvantaged individuals (other than women), and by 
     individuals who are women and are otherwise socially and 
     economically disadvantaged individuals.
       (d) Uniform Certification.--The Secretary shall establish 
     minimum uniform criteria for State governments to use in 
     certifying whether a concern qualifies for purposes of this 
     subsection. Such minimum uniform criteria shall include on-
     site visits, personal interviews, licenses, analysis of stock 
     ownership, listing of equipment, analysis of bonding 
     capacity, listing of work completed, resume of principal 
     owners, financial capacity, and type of work preferred.
       (e) Compliance With Court Orders.--Nothing in this section 
     limits the eligibility of an entity or person to receive 
     funds made available under titles I, III, and V of this Act, 
     if the entity or person is prevented, in whole or in part, 
     from complying with subsection (a) because a Federal court 
     issues a final order in which the court finds that the 
     requirement of subsection (a), or the program established 
     under subsection (a), is unconstitutional.

                   Subtitle I--Technical Corrections

     SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT.

       (a) Letting of Contracts.--Section 112 of title 23, United 
     States Code, is amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsection (g) as subsection (f).
       (b) Fringe and Corridor Parking Facilities.--Section 137(a) 
     of title 23, United States Code, is amended in the first 
     sentence by striking ``on the Federal-aid urban system'' and 
     inserting ``on a Federal-aid highway''.

     SEC. 1902. CLARIFICATION OF DATE.

       Section 109(g) of title 23, United States Code, is amended 
     in the first sentence by striking ``The Secretary'' and all 
     that follows through ``of 1970'' and inserting ``Not later 
     than January 30, 1971, the Secretary shall issue''.

     SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING 
                   FUNDING SOURCES IN TITLE 23.

       (a) In General.--Section 154 of the Federal-Aid Highway Act 
     of 1987 (23 U.S.C. 101 note; 101 Stat. 209) is--
       (1) transferred to title 23, United States Code;
       (2) redesignated as section 321;
       (3) moved to appear after section 320 of that title; and
       (4) amended by striking the section heading and inserting 
     the following:

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

       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by inserting after 
     the item relating to section 320 the following:

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

     SEC. 1904. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23.

       (a) In General.--Section 165 of the Highway Improvement Act 
     of 1982 (23 U.S.C. 101 note; 96 Stat. 2136) is--
       (1) transferred to title 23, United States Code;
       (2) redesignated as section 313;
       (3) moved to appear after section 312 of that title; and
       (4) amended by striking the section heading and inserting 
     the following:

     ``Sec. 313. Buy America''.

       (b) Conforming Amendments.--
       (1) The analysis for chapter 3 of title 23, United States 
     Code, is amended by inserting after the item relating to 
     section 312 the following:

``313. Buy America.''.
       (2) Section 313 of title 23, United States Code (as added 
     by subsection (a)), is amended--
       (A) in subsection (a), by striking ``by this Act'' the 
     first place it appears and all that follows through ``of 
     1978'' and inserting ``to carry out the Surface 
     Transportation Assistance Act of 1982 (96 Stat. 2097) or this 
     title'';
       (B) in subsection (b), by redesignating paragraph (4) as 
     paragraph (3);
       (C) in subsection (d), by striking ``this Act,'' and all 
     that follows through ``Code, which'' and inserting ``the 
     Surface Transportation Assistance Act of 1982 (96 Stat. 2097) 
     or this title that'';
       (D) by striking subsection (e); and
       (E) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.

     SEC. 1905. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION.

       Section 140 of title 23, United States Code, is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``subsection (a) of 
     section 105 of this title'' and inserting ``section 135'';
       (B) in the second sentence, by striking ``He'' and 
     inserting ``The Secretary'';
       (C) in the third sentence, by striking ``where he considers 
     it necessary to assure'' and inserting ``if necessary to 
     ensure''; and
       (D) in the last sentence--
       (i) by striking ``him'' and inserting ``the Secretary'' and
       (ii) by striking ``he'' and inserting ``the Secretary'';
       (2) in subsection (b)--
       (A) in the first sentence, by striking ``highway 
     construction'' and inserting ``surface transportation''; and
       (B) in the second sentence--
       (i) by striking ``as he may deem necessary'' and inserting 
     ``as necessary''; and
       (ii) by striking ``not to exceed $2,500,000 for the 
     transition quarter ending September 30, 1976, and'';
       (3) in the second sentence of subsection (c)--
       (A) by striking ``subsection 104(b)(3) of this title'' and 
     inserting ``section 104(b)(3)''; and
       (B) by striking ``he may deem''; and
       (4) in the heading of subsection (d), by striking ``and 
     contracting''.

                   TITLE II--TRANSPORTATION RESEARCH

                          Subtitle A--Funding

     SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Surface transportation research.--
       (A) In general.--For carrying out sections 502, 503, 506, 
     507, 508, and 511 of title 23, United States Code--

[[Page 845]]

       (i) $211,000,000 for each of fiscal years 2004 and 2005;
       (ii) $215,000,000 for fiscal year 2006;
       (iii) $218,000,000 for fiscal year 2007;
       (iv) $220,000,000 for fiscal year 2008; and
       (v) $223,000,000 for fiscal year 2009.
       (B) Surface transportation-environmental cooperative 
     research program.--For each of fiscal years 2004 through 
     2009, the Secretary shall set aside $20,000,000 of the funds 
     apportioned under subparagraph (A) to carry out the surface 
     transportation-environmental cooperative research program.
       (2) Training and education.--For carrying out section 504 
     of title 23, United States Code--
       (A) $27,000,000 for fiscal year 2004;
       (B) $28,000,000 for fiscal year 2005;
       (C) $29,000,000 for fiscal year 2006;
       (D) $30,000,000 for fiscal year 2007;
       (E) $31,000,000 for fiscal year 2008; and
       (F) $32,000,000 for fiscal year 2009.
       (3) Bureau of transportation statistics.--For the Bureau of 
     Transportation Statistics to carry out section 111 of title 
     49, United States Code, $28,000,000 for each of fiscal years 
     2004 through 2009.
       (4) ITS standards, research, operational tests, and 
     development.--For carrying out sections 524, 525, 526, 527, 
     528, and 529 of title 23, United States Code--
       (A) $120,000,000 for fiscal year 2004;
       (B) $123,000,000 for fiscal year 2005;
       (C) $126,000,000 for fiscal year 2006;
       (D) $129,000,000 for fiscal year 2007;
       (E) $132,000,000 for fiscal year 2008; and
       (F) $135,000,000 for fiscal year 2009.
       (5) University transportation centers.--For carrying out 
     section 510 of title 23, United States Code--
       (A) $40,000,000 for fiscal year 2004; and
       (B) $45,000,000 for each of fiscal years 2005 through 2009.
       (b) Applicability of Title 23, United States Code.--Funds 
     authorized to be appropriated by subsection (a)--
       (1) shall be available for obligation in the same manner as 
     if the funds were apportioned under chapter 1 of title 23, 
     United States Code, except that the Federal share of the cost 
     of a project or activity carried out using the funds shall be 
     the share applicable under section 120(b) of title 23, United 
     States Code, as adjusted under subsection (d) of that section 
     (unless otherwise specified or otherwise determined by the 
     Secretary); and
       (2) shall remain available until expended.
       (c) Allocations.--
       (1) Surface transportation research.--Of the amounts made 
     available under subsection (a)(1)--
       (A) $27,000,000 for each of fiscal years 2004 through 2009 
     shall be available to carry out advanced, high-risk, long-
     term research under section 502(d) of title 23, United States 
     Code; and
       (B) $18,000,000 for fiscal years 2004 and 2005, $17,000,000 
     for fiscal year 2006, $15,000,000 for fiscal year 2007, 
     $12,000,000 for fiscal year 2008, and $10,00,000 for fiscal 
     year 2009 shall be available to carry out the long-term 
     pavement performance program under section 502(e) of that 
     title.
       (2) Technology application program.--Of the amounts made 
     available under subsection (a)(1), $60,000,000 for each of 
     fiscal years 2004 through 2009 shall be available to carry 
     out section 503 of title 23, United States Code.
       (3) Training and education.--Of the amounts made available 
     under subsection (a)(2)--
       (A) $12,000,000 for fiscal year 2004, $12,500,000 for 
     fiscal year 2005, $13,000,000 for fiscal year 2006, 
     $13,500,000 for fiscal year 2007, $14,000,000 for fiscal year 
     2008, and $14,500,000 for fiscal year 2009 shall be available 
     to carry out section 504(a) of title 23, United States Code 
     (relating to the National Highway Institute);
       (B) $12,000,000 for fiscal year 2004, $12,500,000 for 
     fiscal year 2005, $13,000,000 for fiscal year 2006, 
     $13,500,000 for fiscal year 2007, $14,000,000 for fiscal year 
     2008, and $14,500,000 for fiscal year 2009 shall be available 
     to carry out section 504(b) of that title (relating to local 
     technical assistance); and
       (C) $3,000,000 for each of fiscal years 2004 through 2009 
     shall be available to carry out section 504(c)(2) of that 
     title (relating to the Eisenhower Transportation Fellowship 
     Program).
       (4) International highway transportation outreach 
     program.--Of the amounts made available under subsection 
     (a)(1), $500,000 for each of fiscal years 2004 through 2009 
     shall be available to carry out section 506 of title 23, 
     United States Code.
       (5) New strategic highway research program.--For each of 
     fiscal years 2004 through 2009, to carry out section 509 of 
     title 23, United States Code, the Secretary shall set aside--
       (A) $15,000,000 of the amounts made available to carry out 
     the interstate maintenance program under section 119 of title 
     23, United States Code, for the fiscal year;
       (B) $19,000,000 of the amounts made available for the 
     National Highway System under section 101 of title 23, United 
     States Code, for the fiscal year;
       (C) $13,000,000 of the amounts made available to carry out 
     the bridge program under section 144 of title 23, United 
     States Code, for the fiscal year;
       (D) $20,000,000 of the amounts made available to carry out 
     the surface transportation program under section 133 of title 
     23, United States Code, for the fiscal year;
       (E) $5,000,000 of the amounts made available to carry out 
     the congestion mitigation and air quality improvement program 
     under section 149 of title 23, United States Code, for the 
     fiscal year; and
       (F) $3,000,000 of the amounts made available to carry out 
     the highway safety improvement program under section 148 of 
     title 23, United States Code, for the fiscal year.
       (6) Commercial vehicle intelligent transportation system 
     infrastructure program.--Of the amounts made available under 
     subsection (a)(4), not less than $30,000,000 for each of 
     fiscal years 2004 through 2009 shall be available to carry 
     out section 527 of title 23, United States Code.
       (d) Transfers of Funds.--The Secretary may transfer--
       (1) to an amount made available under paragraphs (1), (2), 
     or (4) of subsection (c), not to exceed 10 percent of the 
     amount allocated for a fiscal year under any other of those 
     paragraphs; and
       (2) to an amount made available under subparagraphs (A), 
     (B), or (C) of subsection (c)(3), not to exceed 10 percent of 
     the amount allocated for a fiscal year under any other of 
     those subparagraphs.

     SEC. 2002. OBLIGATION CEILING.

       Notwithstanding any other provision of law, the total of 
     all obligations from amounts made available from the Highway 
     Trust Fund (other than the Mass Transit Account) by section 
     2001(a) shall not exceed--
       (1) $496,000,000 for fiscal year 2004;
       (2) $510,000,000 for fiscal year 2005;
       (3) $518,000,000 for fiscal year 2006;
       (4) $525,000,000 for fiscal year 2007;
       (5) $531,000,000 for fiscal year 2008; and
       (6) $538,000,000 for fiscal year 2009.

     SEC. 2003. NOTICE.

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

                  Subtitle B--Research and Technology

     SEC. 2101. RESEARCH AND TECHNOLOGY PROGRAM.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended to read as follows:

                  ``CHAPTER 5--RESEARCH AND TECHNOLOGY

                 ``Subchapter I--Surface Transportation

``Sec.
``501. Definitions.
``502. Surface transportation research.
``503. Technology application program.
``504. Training and education.
``505. State planning and research.
``506. International highway transportation outreach program.
``507. Surface transportation-environment cooperative research program.
``508. Surface transportation research technology deployment and 
              strategic planning.
``509. New strategic highway research program.
``510. University transportation centers.

    ``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND 
                      TECHNICAL ASSISTANCE PROGRAM

``521. Finding.
``522. Goals and purposes.
``523. Definitions.
``524. General authorities and requirements.
``525. National ITS Program Plan.
``526. National ITS architecture and standards.
``527. Commercial vehicle intelligent transportation system 
              infrastructure program.
``528. Research and development.
``529. Use of funds.

                 ``SUBCHAPTER I--SURFACE TRANSPORTATION

     ``Sec. 501. Definitions

       ``In this subchapter:
       ``(1) Federal laboratory.--The term `Federal laboratory' 
     includes--
       ``(A) a Government-owned, Government-operated laboratory; 
     and
       ``(B) a Government-owned, contractor-operated laboratory.
       ``(2) Safety.--The term `safety' includes highway and 
     traffic safety systems, research, and development relating 
     to--
       ``(A) vehicle, highway, driver, passenger, bicyclist, and 
     pedestrian characteristics;
       ``(B) accident investigations;
       ``(C) communications;
       ``(D) emergency medical care; and
       ``(E) transportation of the injured.

     ``Sec. 502. Surface transportation research

       ``(a) In General.--
       ``(1) Research, development, and technology transfer 
     activities.--The Secretary may carry out research, 
     development, and technology transfer activities with respect 
     to--

[[Page 846]]

       ``(A) all phases of transportation planning and development 
     (including new technologies, construction, transportation 
     systems management and operations development, design, 
     maintenance, safety, security, financing, data collection and 
     analysis, demand forecasting, multimodal assessment, and 
     traffic conditions); and
       ``(B) the effect of State laws on the activities described 
     in subparagraph (A).
       ``(2) Tests and development.--The Secretary may test, 
     develop, or assist in testing and developing, any material, 
     invention, patented article, or process.
       ``(3) Cooperation, grants, and contracts.--
       ``(A) In general.--The Secretary may carry out this 
     section--
       ``(i) independently;
       ``(ii) in cooperation with--

       ``(I) any other Federal agency or instrumentality; and
       ``(II) any Federal laboratory; or

       ``(iii) by making grants to, or entering into contracts, 
     cooperative agreements, and other transactions with--

       ``(I) the National Academy of Sciences;
       ``(II) the American Association of State Highway and 
     Transportation Officials;
       ``(III) planning organizations;
       ``(IV) a Federal laboratory;
       ``(V) a State agency;
       ``(VI) an authority, association, institution, or 
     organization;
       ``(VII) a for-profit or nonprofit corporation;
       ``(VIII) a foreign country; or
       ``(IX) any other person.

       ``(B) Competition; review.--All parties entering into 
     contracts, cooperative agreements or other transactions with 
     the Secretary, or receiving grants, to perform research or 
     provide technical assistance under this section shall be 
     selected, to the maximum extent practicable--
       ``(i) on a competitive basis; and
       ``(ii) on the basis of the results of peer review of 
     proposals submitted to the Secretary.
       ``(4) Technological innovation.--The programs and 
     activities carried out under this section shall be consistent 
     with the surface transportation research and technology 
     development strategic plan developed under section 508(c).
       ``(5) Funds.--
       ``(A) Special account.--In addition to other funds made 
     available to carry out this section, the Secretary shall use 
     such funds as may be deposited by any cooperating 
     organization or person in a special account of the Treasury 
     established for this purpose.
       ``(B) Use of funds.--The Secretary shall use funds made 
     available to carry out this section to develop, administer, 
     communicate, and promote the use of products of research, 
     development, and technology transfer programs under this 
     section.
       ``(b) Collaborative Research and Development.--
       ``(1) In general.--To encourage innovative solutions to 
     surface transportation problems and stimulate the deployment 
     of new technology, the Secretary may carry out, on a cost-
     shared basis, collaborative research and development with--
       ``(A) non-Federal entities (including State and local 
     governments, foreign governments, colleges and universities, 
     corporations, institutions, partnerships, sole 
     proprietorships, and trade associations that are incorporated 
     or established under the laws of any State); and
       ``(B) Federal laboratories.
       ``(2) Agreements.--In carrying out this subsection, the 
     Secretary may enter into cooperative research and development 
     agreements (as defined in section 12 of the Stevenson-Wydler 
     Technology Innovation Act of 1980 (15 U.S.C. 3710a)).
       ``(3) Federal share.--
       ``(A) In general.--The Federal share of the cost of 
     activities carried out under a cooperative research and 
     development agreement entered into under this subsection 
     shall not exceed 50 percent, except that if there is 
     substantial public interest or benefit, the Secretary may 
     approve a greater Federal share.
       ``(B) Non-federal share.--All costs directly incurred by 
     the non-Federal partners, including personnel, travel, and 
     hardware development costs, shall be credited toward the non-
     Federal share of the cost of the activities described in 
     subparagraph (A).
       ``(4) Use of technology.--The research, development, or use 
     of a technology under a cooperative research and development 
     agreement entered into under this subsection, including the 
     terms under which the technology may be licensed and the 
     resulting royalties may be distributed, shall be subject to 
     the Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3701 et seq.).
       ``(5) Waiver of advertising requirements.--Section 3709 of 
     the Revised Statutes (41 U.S.C. 5) shall not apply to a 
     contract or agreement entered into under this chapter.
       ``(c) Contents of Research Program.--The Secretary shall 
     include as priority areas of effort within the surface 
     transportation research program--
       ``(1) the development of new technologies and methods in 
     materials, pavements, structures, design, and construction, 
     with the objectives of--
       ``(A)(i) increasing to 50 years the expected life of 
     pavements;
       ``(ii) increasing to 100 years the expected life of 
     bridges; and
       ``(iii) significantly increasing the durability of other 
     infrastructure;
       ``(B) lowering the life-cycle costs, including--
       ``(i) construction costs;
       ``(ii) maintenance costs;
       ``(iii) operations costs; and
       ``(vi) user costs.
       ``(2) the development, and testing for effectiveness, of 
     nondestructive evaluation technologies for civil 
     infrastructure using existing and new technologies;
       ``(3) the investigation of--
       ``(A) the application of current natural hazard mitigation 
     techniques to manmade hazards; and
       ``(B) the continuation of hazard mitigation research 
     combining manmade and natural hazards;
       ``(4) the improvement of safety--
       ``(A) at intersections;
       ``(B) with respect to accidents involving vehicles run off 
     the road; and
       ``(C) on rural roads;
       ``(5) the reduction of work zone incursions and improvement 
     of work zone safety;
       ``(6) the improvement of geometric design of roads for the 
     purpose of safety;
       ``(7) the examination of data collected through the 
     national bridge inventory conducted under section 144 using 
     the national bridge inspection standards established under 
     section 151, with the objectives of determining whether--
       ``(A) the most useful types of data are being collected; 
     and
       ``(B) any improvement could be made in the types of data 
     collected and the manner in which the data is collected, with 
     respect to bridges in the United States;
       ``(8) the improvement of the infrastructure investment 
     needs report described in subsection (g) through--
       ``(A) the study and implementation of new methods of 
     collecting better quality data, particularly with respect to 
     performance, congestion, and infrastructure conditions;
       ``(B) monitoring of the surface transportation system in a 
     system-wide manner, through the use of--
       ``(i) intelligent transportation system technologies of 
     traffic operations centers; and
       ``(ii) other new data collection technologies as sources of 
     better quality performance data;
       ``(C) the determination of the critical metrics that should 
     be used to determine the condition and performance of the 
     surface transportation system; and
       ``(D) the study and implementation of new methods of 
     statistical analysis and computer models to improve the 
     prediction of future infrastructure investment requirements;
       ``(9) the development of methods to improve the 
     determination of benefits from infrastructure improvements, 
     including--
       ``(A) more accurate calculations of benefit-to-cost ratios, 
     considering benefits and impacts throughout local and 
     regional transportation systems;
       ``(B) improvements in calculating life-cycle costs; and
       ``(C) valuation of assets;
       ``(10) the improvement of planning processes to better 
     predict outcomes of transportation projects, including the 
     application of computer simulations in the planning process 
     to predict outcomes of planning decisions;
       ``(11) the multimodal applications of Geographic 
     Information Systems and remote sensing, including such areas 
     of application as--
       ``(A) planning;
       ``(B) environmental decisionmaking and project delivery; 
     and
       ``(C) freight movement;
       ``(12) the development and application of methods of 
     providing revenues to the Highway Trust Fund with the 
     objective of offsetting potential reductions in fuel tax 
     receipts;
       ``(13) the development of tests and methods to determine 
     the benefits and costs to communities of major transportation 
     investments and projects;
       ``(14) the conduct of extreme weather research, including 
     research to--
       ``(A) reduce contraction and expansion damage;
       ``(B) reduce or repair road damage caused by freezing and 
     thawing;
       ``(C) improve deicing or snow removal techniques;
       ``(D) develop better methods to reduce the risk of thermal 
     collapse, including collapse from changes in underlying 
     permafrost;
       ``(E) improve concrete and asphalt installation in extreme 
     weather conditions; and
       ``(F) make other improvements to protect highway 
     infrastructure or enhance highway safety or performance;
       ``(15) the improvement of planning processes and project 
     development through the development and application of 
     collaboration tools and strategies for finding transportation 
     solutions; and
       ``(16) any other surface transportation research topics 
     that the Secretary determines, in accordance with the 
     strategic planning process under section 508, to be critical.
       ``(d) Advanced, High-Risk Research.--
       ``(1) In general.--The Secretary shall establish and carry 
     out, in accordance with the surface transportation research 
     and technology development strategic plan developed under 
     section 508(c) and research priority areas described in 
     subsection (c), an advanced research program that addresses 
     longer-term, higher-risk research with potentially dramatic 
     breakthroughs for improving the durability, efficiency, 
     environmental impact, productivity, and safety (including 
     bicycle and pedestrian safety) aspects of highway and 
     intermodal transportation systems.
       ``(2) Partnerships.--In carrying out the program, the 
     Secretary shall seek to develop partnerships with the public 
     and private sectors.
       ``(3) Report.--The Secretary shall include in the strategic 
     plan required under section 508(c)

[[Page 847]]

     a description of each of the projects, and the amount of 
     funds expended for each project, carried out under this 
     subsection during the fiscal year.
       ``(e) Long-Term Pavement Performance Program.--
       ``(1) Authority.--The Secretary shall continue, through 
     September 30, 2009, the long-term pavement performance 
     program tests, monitoring, and data analysis.
       ``(2) Grants, cooperative agreements, and contracts.--Under 
     the program, the Secretary shall make grants and enter into 
     cooperative agreements and contracts to--
       ``(A) monitor, material-test, and evaluate highway test 
     sections in existence as of the date of the grant, agreement, 
     or contract;
       ``(B) analyze the data obtained in carrying out 
     subparagraph (A); and
       ``(C) prepare products to fulfill program objectives and 
     meet future pavement technology needs.
       ``(3) Conclusion of program.--
       ``(A) Summary report.--The Secretary shall include in the 
     strategic plan required under section 508(c) a report on the 
     initial conclusions of the long-term pavement performance 
     program that includes--
       ``(i) an analysis of any research objectives that remain to 
     be achieved under the program;
       ``(ii) an analysis of other associated longer-term 
     expenditures under the program that are in the public 
     interest;
       ``(iii) a detailed plan regarding the storage, maintenance, 
     and user support of the database, information management 
     system, and materials reference library of the program;
       ``(iv) a schedule for continued implementation of the 
     necessary data collection and analysis and project plan under 
     the program; and
       ``(v) an estimate of the costs of carrying out each of the 
     activities described in clauses (i) through (iv) for each 
     fiscal year during which the program is carried out.
       ``(B) Deadline; usefulness of advances.--The Secretary 
     shall, to the maximum extent practicable--
       ``(i) ensure that the long-term pavement performance 
     program is concluded not later than September 30, 2009; and
       ``(ii) make such allowances as are necessary to ensure the 
     usefulness of the technological advances resulting from the 
     program.
       ``(f) Seismic Research.--The Secretary shall--
       ``(1) in consultation and cooperation with Federal agencies 
     participating in the National Earthquake Hazards Reduction 
     Program established by section 5 of the Earthquake Hazards 
     Reduction Act of 1977 (42 U.S.C. 7704), coordinate the 
     conduct of seismic research; and
       ``(2) take such actions as are necessary to ensure that the 
     coordination of the research is consistent with--
       ``(A) planning and coordination activities of the Director 
     of the Federal Emergency Management Agency under section 
     5(b)(1) of that Act (42 U.S.C. 7704(b)(1)); and
       ``(B) the plan developed by the Director of the Federal 
     Emergency Management Agency under section 8(b) of that Act 
     (42 U.S.C. 7705b(b)).
       ``(g) Infrastructure Investment Needs Report.--
       ``(1) In general.--Not later than July 31, 2004, and July 
     31 of every second year thereafter, the Secretary shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report that 
     describes--
       ``(A) estimates of the future highway and bridge needs of 
     the United States; and
       ``(B) the backlog of current highway and bridge needs.
       ``(2) Comparison with prior reports.--Each report under 
     paragraph (1) shall provide the means, including all 
     necessary information, to relate and compare the conditions 
     and service measures used in the previous biennial reports.
       ``(h) Security Related Research and Technology Transfer 
     Activities.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the Secretary, 
     in consultation with the Secretary of Homeland Security, with 
     key stakeholder input (including State transportation 
     departments) shall develop a 5-year strategic plan for 
     research and technology transfer and deployment activities 
     pertaining to the security aspects of highway infrastructure 
     and operations.
       ``(2) Components of plan.--The plan shall include--
       ``(A) an identification of which agencies are responsible 
     for the conduct of various research and technology transfer 
     activities;
       ``(B) a description of the manner in which those activities 
     will be coordinated; and
       ``(C) a description of the process to be used to ensure 
     that the advances derived from relevant activities supported 
     by the Federal Highway Administration are consistent with the 
     operational guidelines, policies, recommendations, and 
     regulations of the Department of Homeland Security; and
       ``(D) a systematic evaluation of the research that should 
     be conducted to address, at a minimum--
       ``(i) vulnerabilities of, and measures that may be taken to 
     improve, emergency response capabilities and evacuations;
       ``(ii) recommended upgrades of traffic management during 
     crises;
       ``(iii) enhanced communications among the public, the 
     military, law enforcement, fire and emergency medical 
     services, and transportation agencies;
       ``(iv) protection of critical, security-related 
     infrastructure; and
       ``(v) structural reinforcement of key facilities.
       ``(3) Submission.--On completion of the plan under this 
     subsection, the Secretary shall submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives--
       ``(A) a copy of the plan developed under paragraph (1); and
       ``(B) a copy of a memorandum of understanding specifying 
     coordination strategies and assignment of responsibilities 
     covered by the plan that is signed by the Secretary and the 
     Secretary of Homeland Security.

     ``Sec. 503. Technology application program

       ``(a) Technology Application Initiatives and Partnerships 
     Program.--
       ``(1) Establishment.--The Secretary, in consultation with 
     interested stakeholders, shall develop and administer a 
     national technology application initiatives and partnerships 
     program.
       ``(2) Purpose.--The purpose of the program shall be to 
     significantly accelerate the adoption of innovative 
     technologies by the surface transportation community.
       ``(3) Application goals.--
       ``(A) Establishment.--Not later than 180 days after the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the Secretary, 
     in consultation with the Surface Transportation Research 
     Technology Advisory Committee, State transportation 
     departments, and other interested stakeholders, shall 
     establish, as part of the surface transportation research and 
     technology development strategic plan under section 508(c), 
     goals to carry out paragraph (1).
       ``(B) Design.--Each of the goals and the program developed 
     to achieve the goals shall be designed to provide tangible 
     benefits, with respect to transportation systems, in the 
     areas of efficiency, safety, reliability, service life, 
     environmental protection, and sustainability.
       ``(C) Strategies for achievement.--For each goal, the 
     Secretary, in cooperation with representatives of the 
     transportation community, such as States, local governments, 
     the private sector, and academia, shall use domestic and 
     international technology to develop strategies and 
     initiatives to achieve the goal, including technical 
     assistance in deploying technology and mechanisms for sharing 
     information among program participants.
       ``(4) Integration with other programs.--The Secretary shall 
     integrate activities carried out under this subsection with 
     the efforts of the Secretary to--
       ``(A) disseminate the results of research sponsored by the 
     Secretary; and
       ``(B) facilitate technology transfer.
       ``(5) Leveraging of federal resources.--In selecting 
     projects to be carried out under this subsection, the 
     Secretary shall give preference to projects that leverage 
     Federal funds with other significant public or private 
     resources.
       ``(6) Grants, cooperative agreements, and contracts.--Under 
     the program, the Secretary may make grants and enter into 
     cooperative agreements and contracts to foster alliances and 
     support efforts to stimulate advances in transportation 
     technology.
       ``(7) Reports.--The results and progress of activities 
     carried out under this section shall be published as part of 
     the annual transportation research report prepared by the 
     Secretary under section 508(c)(5).
       ``(8) Allocation.--To the extent appropriate to achieve the 
     goals established under paragraph (3), the Secretary may 
     further allocate funds made available to carry out this 
     section to States for use by those States.
       ``(b) Innovative Surface Transportation Infrastructure 
     Research and Construction Program.--
       ``(1) In general.--The Secretary shall establish and carry 
     out a program for the application of innovative material, 
     design, and construction technologies in the construction, 
     preservation, and rehabilitation of elements of surface 
     transportation infrastructure.
       ``(2) Goals.--The goals of the program shall include--
       ``(A) the development of new, cost-effective, and 
     innovative materials;
       ``(B) the reduction of maintenance costs and life-cycle 
     costs of elements of infrastructure, including the costs of 
     new construction, replacement, and rehabilitation;
       ``(C) the development of construction techniques to 
     increase safety and reduce construction time and traffic 
     congestion;
       ``(D) the development of engineering design criteria for 
     innovative products and materials for use in surface 
     transportation infrastructure;
       ``(E) the development of highway bridges and structures 
     that will withstand natural disasters and disasters caused by 
     human activity; and
       ``(F) the development of new, nondestructive technologies 
     and techniques for the evaluation of elements of 
     transportation infrastructure.
       ``(3) Grants, cooperative agreements, and contracts.--
       ``(A) In general.--Under the program, the Secretary shall 
     make grants to, and enter into cooperative agreements and 
     contracts with--
       ``(i) States, other Federal agencies, universities and 
     colleges, private sector entities, and nonprofit 
     organizations, to pay the Federal share of the cost of 
     research, development, and technology transfer concerning 
     innovative materials and methods; and
       ``(ii) States, to pay the Federal share of the cost of 
     repair, rehabilitation, replacement, and

[[Page 848]]

     new construction of elements of surface transportation 
     infrastructure that demonstrate the application of innovative 
     materials and methods.
       ``(B) Applications.--
       ``(i) In general.--To receive a grant under this 
     subsection, an entity described in subparagraph (A) shall 
     submit to the Secretary an application in such form and 
     containing such information as the Secretary may require.
       ``(ii) Approval.--The Secretary shall select and approve an 
     application based on whether the proposed project that is the 
     subject of the application would meet the goals described in 
     paragraph (2).
       ``(4) Technology and information transfer.--The Secretary 
     shall take such action as is necessary to--
       ``(A) ensure that the information and technology resulting 
     from research conducted under paragraph (3) is made available 
     to State and local transportation departments and other 
     interested parties, as specified by the Secretary; and
       ``(B) encourage the use of the information and technology.
       ``(5) Federal share.--The Federal share of the cost of a 
     project under this section shall be determined by the 
     Secretary.

     ``Sec. 504. Training and education

       ``(a) National Highway Institute.--
       ``(1) In general.--The Secretary shall--
       ``(A) operate, in the Federal Highway Administration, a 
     National Highway Institute (referred to in this subsection as 
     the `Institute'); and
       ``(B) administer, through the Institute, the authority 
     vested in the Secretary by this title or by any other law for 
     the development and conduct of education and training 
     programs relating to highways.
       ``(2) Duties of the institute.--In cooperation with State 
     transportation departments, industries in the United States, 
     and national or international entities, the Institute shall 
     develop and administer education and training programs of 
     instruction for--
       ``(A) Federal Highway Administration, State, and local 
     transportation agency employees;
       ``(B) regional, State, and metropolitan planning 
     organizations;
       ``(C) State and local police, public safety, and motor 
     vehicle employees; and
       ``(D) United States citizens and foreign nationals engaged 
     or to be engaged in surface transportation work of interest 
     to the United States.
       ``(3) Courses.--
       ``(A) In general.--The Institute shall--
       ``(i) develop or update existing courses in asset 
     management, including courses that include such components 
     as--

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

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

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

       ``(B) Additional courses.--In addition to the courses 
     developed under subparagraph (A), the Institute, in 
     consultation with State transportation departments, 
     metropolitan planning organizations, and the American 
     Association of State Highway and Transportation Officials, 
     may develop courses relating to technology, methods, 
     techniques, engineering, construction, safety, maintenance, 
     environmental mitigation and compliance, regulations, 
     management, inspection, and finance.
       ``(C) Revision of courses offered.--The Institute shall 
     periodically--
       ``(i) review the course inventory of the Institute; and
       ``(ii) revise or cease to offer courses based on course 
     content, applicability, and need.
       ``(4) Eligibility; federal share.--The funds apportioned to 
     a State under section 104(b)(3) for the surface 
     transportation program shall be expended by the State 
     transportation department for the payment of not to exceed 80 
     percent of the cost of tuition and direct educational 
     expenses (excluding salaries) in connection with the 
     education and training of employees of State and local 
     transportation agencies in accordance with this subsection.
       ``(5) Federal responsibility.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     education and training of employees of Federal, State, and 
     local transportation (including highway) agencies authorized 
     under this subsection may be provided--
       ``(i) by the Secretary, at no cost to the States and local 
     governments, if the Secretary determines that provision at no 
     cost is in the public interest; or
       ``(ii) by the State, through grants, cooperative 
     agreements, and contracts with public and private agencies, 
     institutions, individuals, and the Institute.
       ``(B) Payment of full cost by private persons.--Private 
     agencies, international or foreign entities, and individuals 
     shall pay the full cost of any education and training 
     (including the cost of course development) received by the 
     agencies, entities, and individuals, unless the Secretary 
     determines that payment of a lesser amount of the cost is of 
     critical importance to the public interest.
       ``(6) Training fellowships; cooperation.--The Institute 
     may--
       ``(A) engage in training activities authorized under this 
     subsection, including the granting of training fellowships; 
     and
       ``(B) exercise the authority of the Institute independently 
     or in cooperation with any--
       ``(i) other Federal or State agency;
       ``(ii) association, authority, institution, or 
     organization;
       ``(iii) for-profit or nonprofit corporation;
       ``(iv) national or international entity;
       ``(v) foreign country; or
       ``(vi) person.
       ``(7) Collection of fees.--
       ``(A) In general.--In accordance with this subsection, the 
     Institute may assess and collect fees to defray the costs of 
     the Institute in developing or administering education and 
     training programs under this subsection.
       ``(B) Persons subject to fees.--Fees may be assessed and 
     collected under this subsection only with respect to--
       ``(i) persons and entities for whom education or training 
     programs are developed or administered under this subsection; 
     and
       ``(ii) persons and entities to whom education or training 
     is provided under this subsection.
       ``(C) Amount of fees.--The fees assessed and collected 
     under this subsection shall be established in a manner that 
     ensures that the liability of any person or entity for a fee 
     is reasonably based on the proportion of the costs referred 
     to in subparagraph (A) that relate to the person or entity.
       ``(D) Use.--All fees collected under this subsection shall 
     be used, without further appropriation, to defray costs 
     associated with the development or administration of 
     education and training programs authorized under this 
     subsection.
       ``(8) Relation to fees.--The funds made available to carry 
     out this subsection may be combined with or held separate 
     from the fees collected under--
       ``(A) paragraph (7);
       ``(B) memoranda of understanding;
       ``(C) regional compacts; and
       ``(D) other similar agreements.
       ``(b) Local Technical Assistance Program.--
       ``(1) Authority.--The Secretary shall carry out a local 
     technical assistance program that will provide access to 
     surface transportation technology to--
       ``(A) highway and transportation agencies in urbanized 
     areas;
       ``(B) highway and transportation agencies in rural areas;
       ``(C) contractors that perform work for the agencies; and
       ``(D) infrastructure security.
       ``(2) Grants, cooperative agreements, and contracts.--The 
     Secretary may make grants and enter into cooperative 
     agreements and contracts to provide education and training, 
     technical assistance, and related support services to--
       ``(A) assist rural, local transportation agencies and 
     tribal governments, and the consultants and construction 
     personnel working for the agencies and governments, to--
       ``(i) develop and expand expertise in road and 
     transportation areas (including pavement, bridge, concrete 
     structures, intermodal connections, safety management 
     systems, intelligent transportation systems, incident 
     response, operations, and traffic safety countermeasures);
       ``(ii) improve roads and bridges;
       ``(iii) enhance--

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

       ``(iv) deal effectively with special transportation-related 
     problems by preparing and providing training packages, 
     manuals, guidelines, and technical resource materials;
       ``(B) develop technical assistance for tourism and 
     recreational travel;
       ``(C) identify, package, and deliver transportation 
     technology and traffic safety information to local 
     jurisdictions to assist urban transportation agencies in 
     developing and expanding their ability to deal effectively 
     with transportation-related problems (particularly the 
     promotion of regional cooperation);
       ``(D) operate, in cooperation with State transportation 
     departments and universities--
       ``(i) local technical assistance program centers designated 
     to provide transportation technology transfer services to 
     rural areas and to urbanized areas; and
       ``(ii) local technical assistance program centers 
     designated to provide transportation technical assistance to 
     tribal governments; and
       ``(E) allow local transportation agencies and tribal 
     governments, in cooperation with the private sector, to 
     enhance new technology implementation.
       ``(c) Research Fellowships.--
       ``(1) General authority.--The Secretary, acting 
     independently or in cooperation with other Federal agencies 
     and instrumentalities, may make grants for research 
     fellowships for any purpose for which research is authorized 
     by this chapter.
       ``(2) Dwight david eisenhower transportation fellowship 
     program.--The Secretary shall establish and implement a 
     transportation research fellowship program, to be known as 
     the `Dwight David Eisenhower Transportation Fellowship 
     Program', for the purpose of attracting qualified students to 
     the field of transportation.

[[Page 849]]



     ``Sec. 505. State planning and research

       ``(a) In General.--Two percent of the sums apportioned to a 
     State for fiscal year 2004 and each fiscal year thereafter 
     under sections 104 (other than subsections (f) and (h)) and 
     144 shall be available for expenditure by the State, in 
     consultation with the Secretary, only for--
       ``(1) the conduct of engineering and economic surveys and 
     investigations;
       ``(2) the planning of--
       ``(A) future highway programs and local public 
     transportation systems; and
       ``(B) the financing of those programs and systems, 
     including metropolitan and statewide planning under sections 
     134 and 135;
       ``(3) the development and implementation of management 
     systems under section 303;
       ``(4) the conduct of studies on--
       ``(A) the economy, safety, and convenience of surface 
     transportation systems; and
       ``(B) the desirable regulation and equitable taxation of 
     those systems;
       ``(5) research, development, and technology transfer 
     activities necessary in connection with the planning, design, 
     construction, management, and maintenance of highway, public 
     transportation, and intermodal transportation systems;
       ``(6) the conduct of studies, research, and training 
     relating to the engineering standards and construction 
     materials for surface transportation systems described in 
     paragraph (5) (including the evaluation and accreditation of 
     inspection and testing and the regulation of and charging for 
     the use of the standards and materials); and
       ``(7) the conduct of activities relating to the planning of 
     real-time monitoring elements.
       ``(b) Minimum Expenditures on Research, Development, and 
     Technology Transfer Activities.--
       ``(1) In general.--Subject to paragraph (2), not less than 
     25 percent of the funds subject to subsection (a) that are 
     apportioned to a State for a fiscal year shall be expended by 
     the State for research, development, and technology transfer 
     activities that--
       ``(A) are described in subsection (a); and
       ``(B) relate to highway, public transportation, and 
     intermodal transportation systems.
       ``(2) Waivers.--The Secretary may waive the application of 
     paragraph (1) with respect to a State for a fiscal year if--
       ``(A) the State certifies to the Secretary for the fiscal 
     year that total expenditures by the State for transportation 
     planning under sections 134 and 135 will exceed 75 percent of 
     the funds described in paragraph (1); and
       ``(B) the Secretary accepts the certification of the State.
       ``(3) Nonapplicability of assessment.--Funds expended under 
     paragraph (1) shall not be considered to be part of the 
     extramural budget of the agency for the purpose of section 9 
     of the Small Business Act (15 U.S.C. 638).
       ``(c) Federal Share.--The Federal share of the cost of a 
     project carried out using funds subject to subsection (a) 
     shall be the share applicable under section 120(b), as 
     adjusted under subsection (d) of that section.
       ``(d) Administration of Sums.--Funds subject to subsection 
     (a) shall be--
       ``(1) combined and administered by the Secretary as a 
     single fund; and
       ``(2) available for obligation for the period described in 
     section 118(b)(2).
       ``(e) Eligible Use of State Planning and Research Funds.--A 
     State, in coordination with the Secretary, may obligate funds 
     made available to carry out this section for any purpose 
     authorized under section 506(a).

     ``Sec. 506. International highway transportation outreach 
       program

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

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

       ``(a) In General.--The Secretary shall establish and carry 
     out a surface transportation-environment cooperative research 
     program.
       ``(b) Contents.--The program carried out under this section 
     may include research--
       ``(1) to develop more accurate models for evaluating 
     transportation control measures and transportation system 
     designs that are appropriate for use by State and local 
     governments (including metropolitan planning organizations) 
     in designing implementation plans to meet Federal, State, and 
     local environmental requirements;
       ``(2) to improve understanding of the factors that 
     contribute to the demand for transportation;
       ``(3) to develop indicators of economic, social, and 
     environmental performance of transportation systems to 
     facilitate analysis of potential alternatives;
       ``(4) to meet additional priorities as determined by the 
     Secretary in the strategic planning process under section 
     508; and
       ``(5) to refine, through the conduct of workshops, 
     symposia, and panels, and in consultation with stakeholders 
     (including the Department of Energy, the Environmental 
     Protection Agency, and other appropriate Federal and State 
     agencies and associations) the scope and research emphases of 
     the program.
       ``(c) Program Administration.--The Secretary shall--
       ``(1) administer the program established under this 
     section; and
       ``(2) ensure, to the maximum extent practicable, that--
       ``(A) the best projects and researchers are selected to 
     conduct research in the priority areas described in 
     subsection (b)--
       ``(i) on the basis of merit of each submitted proposal; and
       ``(ii) through the use of open solicitations and selection 
     by a panel of appropriate experts;
       ``(B) a qualified, permanent core staff with the ability 
     and expertise to manage a large multiyear budget is used;
       ``(C) the stakeholders are involved in the governance of 
     the program, at the executive, overall program, and technical 
     levels, through the use of expert panels and committees; and
       ``(D) there is no duplication of research effort between 
     the program established under this section and the new 
     strategic highway research program established under section 
     509.
       ``(d) National Academy of Sciences.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     National Academy of Sciences to carry out such activities 
     relating to the research, technology, and technology transfer 
     activities described in subsections (b) and (c) as the 
     Secretary determines to be appropriate.

     ``Sec. 508. Surface transportation research technology 
       deployment and strategic planning

       ``(a) Planning.--
       ``(1) Establishment.--The Secretary shall--
       ``(A) establish, in accordance with section 306 of title 5, 
     a strategic planning process that--
       ``(i) enhances effective implementation of this section 
     through the establishment in accordance with paragraph (2) of 
     the Surface Transportation Research Technology Advisory 
     Committee; and
       ``(ii) focuses on surface transportation research funded 
     through paragraphs (1), (2), (4), and (5) of section 2001(a) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, taking into consideration 
     national surface transportation system needs and 
     intermodality requirements;
       ``(B) coordinate Federal surface transportation research, 
     technology development, and deployment activities;
       ``(C) at such intervals as are appropriate and practicable, 
     measure the results of those activities and the ways in which 
     the activities affect the performance of the surface 
     transportation systems of the United States; and

[[Page 850]]

       ``(D) ensure, to the maximum extent practicable, that 
     planning and reporting activities carried out under this 
     section are coordinated with all other surface transportation 
     planning and reporting requirements.
       ``(2) Surface transportation research technology advisory 
     committee.--
       ``(A) Establishment.--Not later than 90 days after the date 
     of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, the Secretary 
     shall establish a committee to be known as the `Surface 
     Transportation Research Technology Advisory Committee' 
     (referred to in this section as the `Committee').
       ``(B) Membership.--The Committee shall be composed of 12 
     members appointed by the Secretary--
       ``(i) each of which shall have expertise in a particular 
     area relating to Federal surface transportation programs, 
     including--

       ``(I) safety;
       ``(II) operations;
       ``(III) infrastructure (including pavements and 
     structures);
       ``(IV) planning and environment;
       ``(V) policy; and
       ``(VI) asset management; and

       ``(ii) of which--

       ``(I) 3 members shall be individuals representing the 
     Federal Government;
       ``(II) 3 members--

       ``(aa) shall be exceptionally qualified to serve on the 
     Committee, as determined by the Secretary, based on 
     education, training, and experience; and
       ``(bb) shall not be officers or employees of the United 
     States;

       ``(III) 3 members--

       ``(aa) shall represent the transportation industry 
     (including the pavement industry); and
       ``(bb) shall not be officers or employees of the United 
     States; and

       ``(IV) 3 members shall represent State transportation 
     departments from 3 different geographical regions of the 
     United States.

       ``(C) Meetings.--The advisory subcommittees shall meet on a 
     regular basis, but not less than twice each year.
       ``(D) Duties.--The Committee shall provide to the 
     Secretary, on a continuous basis, advice and guidance 
     relating to--
       ``(i) the determination of surface transportation research 
     priorities;
       ``(ii) the improvement of the research planning and 
     implementation process;
       ``(iii) the design and selection of research projects;
       ``(iv) the review of research results;
       ``(v) the planning and implementation of technology 
     transfer activities and
       ``(vi) the formulation of the surface transportation 
     research and technology deployment and deployment strategic 
     plan required under subsection (c).
       ``(E) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this paragraph 
     $200,000 for each fiscal year.
       ``(b) Implementation.--The Secretary shall--
       ``(1) provide for the integrated planning, coordination, 
     and consultation among the operating administrations of the 
     Department of Transportation, all other Federal agencies with 
     responsibility for surface transportation research and 
     technology development, State and local governments, 
     institutions of higher education, industry, and other private 
     and public sector organizations engaged in surface 
     transportation-related research and development activities; 
     and
       ``(2) ensure that the surface transportation research and 
     technology development programs of the Department do not 
     duplicate other Federal, State, or private sector research 
     and development programs.
       ``(c) Surface Transportation Research and Technology 
     Deployment Strategic Plan.--
       ``(1) In general.--After receiving, and based on, extensive 
     consultation and input from stakeholders representing the 
     transportation community and the Surface Transportation 
     Research Advisory Committee, the Secretary shall, not later 
     than 1 year after the date of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2003, complete, and shall periodically update 
     thereafter, a strategic plan for each of the core surface 
     transportation research areas, including--
       ``(A) safety;
       ``(B) operations;
       ``(C) infrastructure (including pavements and structures);
       ``(D) planning and environment; and
       ``(E) policy.
       ``(2) Components.--The strategic plan shall specify--
       ``(A) surface transportation research objectives and 
     priorities;
       ``(B) specific highway research projects to be conducted;
       ``(C) recommended technology transfer activities to promote 
     the deployment of advances resulting from the highway 
     research conducted; and
       ``(D) short- and long-term technology development and 
     deployment activities.
       ``(3) Review and submission of findings.--The Secretary 
     shall enter into a contract with the Transportation Research 
     Board of the National Academy of Sciences, on behalf of the 
     Research and Technology Coordinating Committee of the 
     National Research Council, under which--
       ``(A) the Transportation Research Board shall--
       ``(i) review the research and technology planning and 
     implementation process used by Federal Highway 
     Administration; and
       ``(ii) evaluate each of the strategic plans prepared under 
     this subsection--

       ``(I) to ensure that sufficient stakeholder input is being 
     solicited and considered throughout the preparation process; 
     and
       ``(II) to offer recommendations relevant to research 
     priorities, project selection, and deployment strategies; and

       ``(B) the Secretary shall ensure that the Research and 
     Technology Coordinating Committee, in a timely manner, 
     informs the Committee on Environment and Public Works of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives of the findings of the review 
     and evaluation under subparagraph (A).
       ``(4) Responses of secretary.--Not later than 60 days after 
     the date of completion of the strategic plan under this 
     subsection, the Secretary shall submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives written responses to each of the 
     recommendations of the Research and Technology Coordinating 
     Committee under paragraph (3)(A)(ii)(II).
       ``(d) Consistency With Government Performance and Results 
     Act of 1993.--The plans and reports developed under this 
     section shall be consistent with and incorporated as part of 
     the plans developed under section 306 of title 5 and sections 
     1115 and 1116 of title 31.

     ``Sec. 509. New strategic highway research program

       ``(a) In General.--The National Research Council shall 
     establish and carry out, through fiscal year 2009, a new 
     strategic highway research program.
       ``(b) Basis; Priorities.--With respect to the program 
     established under subsection (a)--
       ``(1) the program shall be based on--
       ``(A) National Research Council Special Report No. 260, 
     entitled `Strategic Highway Research'; and
       ``(B) the results of the detailed planning work 
     subsequently carried out to scope the research areas through 
     National Cooperative Research Program Project 20-58.
       ``(2) the scope and research priorities of the program 
     shall--
       ``(A) be refined through stakeholder input in the form of 
     workshops, symposia, and panels; and
       ``(B) include an examination of--
       ``(i) the roles of highway infrastructure, drivers, and 
     vehicles in fatalities on public roads;
       ``(ii) high-risk areas and activities associated with the 
     greatest numbers of highway fatalities;
       ``(iii) the roles of various levels of government agencies 
     and non-governmental organizations in reducing highway 
     fatalities (including recommendations for methods of 
     strengthening highway safety partnerships);
       ``(iv) measures that may save the greatest number of lives 
     in the short- and long-term;
       ``(v) renewal of aging infrastructure with minimum impact 
     on users of facilities;
       ``(vi) driving behavior and likely crash causal factors to 
     support improved countermeasures;
       ``(vii) reduction in congestion due to nonrecurring 
     congestion;
       ``(viii) planning and designing of new road capacity to 
     meet mobility, economic, environmental, and community needs;
       ``(3) the program shall consider, at a minimum, the results 
     of studies relating to the implementation of the Strategic 
     Highway Safety Plan prepared by the American Association of 
     State Highway and Transportation Officials; and
       ``(4) the research results of the program, expressed in 
     terms of technologies, methodologies, and other appropriate 
     categorizations, shall be disseminated to practicing 
     engineers as soon as practicable for their use.
       ``(c) Program Administration.--In carrying out the program 
     under this section, the National Research Council shall 
     ensure, to the maximum extent practicable, that--
       ``(1) the best projects and researchers are selected to 
     conduct research for the program and priorities described in 
     subsection (b)--
       ``(A) on the basis of the merit of each submitted proposal; 
     and
       ``(B) through the use of open solicitations and selection 
     by a panel of appropriate experts;
       ``(2) the National Research Council acquires a qualified, 
     permanent core staff with the ability and expertise to manage 
     a large research program and multiyear budget;
       ``(3) the stakeholders are involved in the governance of 
     the program, at the executive, overall program, and technical 
     levels, through the use of expert panels and committees; and
       ``(4) there is no duplication of research effort between 
     the program established under this section and the surface 
     transportation-environment cooperative research program 
     established under section 507 or any other research effort of 
     the Department.
       ``(d) National Academy of Sciences.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     National Academy of Sciences to carry out such activities 
     relating to research, technology, and technology transfer 
     described in subsections (b) and (c) as the Secretary 
     determines to be appropriate.
       ``(e) Report on Implementation of Results.--
       ``(1) In general.--Not later than October 1, 2007, the 
     Secretary shall enter into a contract with the Transportation 
     Research Board of the

[[Page 851]]

     National Academy of Sciences under which the Transportation 
     Research Board shall complete a report on the strategies and 
     administrative structure to be used for implementation of the 
     results of new strategic highway research program.
       ``(2) Components.--The report under paragraph (1) shall 
     include, with respect to the new strategic highway research 
     program--
       ``(A) an identification of the most promising results of 
     research under the program (including the persons most likely 
     to use the results);
       ``(B) a discussion of potential incentives for, impediments 
     to, and methods of, implementing those results;
       ``(C) an estimate of costs that would be incurred in 
     expediting implementation of those results; and
       ``(D) recommendations for the way in which implementation 
     of the results of the program under this section should be 
     conducted, coordinated, and supported in future years, 
     including a discussion of the administrative structure and 
     organization best suited to carry out those responsibilities.
       ``(3) Consultation.--In developing the report, the 
     Transportation Research Board shall consult with a wide 
     variety of stakeholders, including--
       ``(A) the American Association of State highway Officials;
       ``(B) the Federal Highway Administration; and
       ``(C) the Surface Transportation Research Technology 
     Advisory Committee.
       ``(4) Submission.--Not later than February 1, 2009, the 
     Secretary shall submit to the Committee on Environment and 
     Public Works of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives the report under this subsection.

     ``Sec. 510. University transportation centers

       ``(a) Centers.--
       ``(1) In general.--During fiscal year 2004, the Secretary 
     shall provide grants to 40 nonprofit institutions of higher 
     learning (or consortia of institutions of higher learning) to 
     establish centers to address transportation design, 
     management, research, development, and technology matters, 
     especially the education and training of greater numbers of 
     individuals to enter into the professional field of 
     transportation.
       ``(2) Distribution of centers.--Not more than 1 university 
     transportation center (or lead university in a consortia of 
     institutions of higher learning), other than a center or 
     university selected through a competitive process, may be 
     located in any State.
       ``(3) Identification of centers.--The university 
     transportation centers established under this section shall--
       ``(A) comply with applicable requirements under subsection 
     (c); and
       ``(B) be located at the institutions of higher learning 
     specified in paragraph (4).
       ``(4) Identification of groups.--For the purpose of making 
     grants under this subsection, the following grants are 
     identified:
       ``(A) Group a.--Group A shall consist of the 10 regional 
     centers selected under subsection (b).
       ``(B) Group b.--Group B shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________]
       ``(ix) [_________].
       ``(x) [_________].
       ``(xi) [_________].
       ``(C) Group c.--Group C shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________].
       ``(ix) [_________].
       ``(x) [_________].
       ``(xi) [_________].
       ``(D) Group d.--Group D shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________].
       ``(b) Regional Centers.--
       ``(1) In general.--Not later than September 30, 2004, the 
     Secretary shall provide to nonprofit institutions of higher 
     learning (or consortia of institutions of higher learning) 
     grants to be used during the period of fiscal years 2005 
     through 2009 to establish and operate 1 university 
     transportation center in each of the 10 Federal regions that 
     comprise the Standard Federal Regional Boundary System.
       ``(2) Selection of regional centers.--
       ``(A) Proposals.--In order to be eligible to receive a 
     grant under this subsection, an institution described in 
     paragraph (1) shall submit to the Secretary a proposal, in 
     response to any request for proposals that shall be made by 
     the Secretary, that is in such form and contains such 
     information as the Secretary shall prescribe.
       ``(B) Request schedule.--The Secretary shall request 
     proposals once for the period of fiscal years 2004 through 
     2006 and once for the period of fiscal years 2007 through 
     2009.
       ``(C) Eligibility.--Any institution of higher learning (or 
     consortium of institutions of higher learning) that meets the 
     criteria described in subsection (c) (including any 
     institution identified in subsection (a)(4)) may apply for a 
     grant under this subsection.
       ``(D) Selection criteria.--The Secretary shall select each 
     recipient of a grant under this subsection through a 
     competitive process on the basis of--
       ``(i) the location of the center within the Federal region 
     to be served;
       ``(ii) the demonstrated research capabilities and extension 
     resources available to the recipient to carry out this 
     section;
       ``(iii) the capability of the recipient to provide 
     leadership in making national and regional contributions to 
     the solution of immediate and long-range transportation 
     problems;
       ``(iv) the demonstrated ability of the recipient to 
     disseminate results of transportation research and education 
     programs through a statewide or regionwide continuing 
     education program; and
       ``(v) the strategic plan that the recipient proposes to 
     carry out using funds from the grant.
       ``(E) Selection process.--In selecting the recipients of 
     grants under this subsection, the Secretary shall consult 
     with, and consider the advice of--
       ``(i) the Research and Special Programs Administration;
       ``(ii) the Federal Highway Administration; and
       ``(iii) the Federal Transit Administration.
       ``(c) Center Requirements.--
       ``(1) In general.--With respect to a university 
     transportation center established under subsection (a) or 
     (b), the institution or consortium that receives a grant to 
     establish the center--
       ``(A) shall annually contribute at least $250,000 to the 
     operation and maintenance of the center, except that payment 
     by the institution or consortium of the salary required for 
     transportation-related faculty and staff for a period greater 
     than 90 days may not be counted against that contribution;
       ``(B) shall have established, as of the date of receipt of 
     the grant, undergraduate or graduate programs in--
       ``(i) civil engineering;
       ``(ii) transportation engineering;
       ``(iii) transportation systems management and operations; 
     or
       ``(iv) any other field significantly related to surface 
     transportation systems, as determined by the Secretary; and
       ``(C) not later than 120 days after the date on which the 
     institution or consortium receives notice of selection as a 
     site for the establishment of a university transportation 
     center under this section, shall submit to the Secretary a 6-
     year program plan for the university transportation center 
     that includes, with respect to the center--
       ``(i) a description of the purposes of programs to be 
     conducted by the center;
       ``(ii) a description of the undergraduate and graduate 
     transportation education efforts to be carried out by the 
     center;
       ``(iii) a description of the nature and scope of research 
     to be conducted by the center;
       ``(iv) a list of personnel, including the roles and 
     responsibilities of those personnel within the center; and
       ``(v) a detailed budget, including the amount of 
     contributions by the institution or consortium to the center; 
     and
       ``(D) shall establish an advisory committee that--
       ``(i) is composed of a representative from each of the 
     State transportation department of the State in which the 
     institution or consortium is located, the Department of 
     Transportation, and the institution or consortia, as 
     appointed by those respective entities;
       ``(ii) in accordance with paragraph (2), shall review and 
     approve or disapprove the plan of the institution or 
     consortium under subparagraph (C); and
       ``(iii) shall, to the maximum extent practicable, ensure 
     that the proposed research to be carried out by the 
     university transportation center will contribute to the 
     national highway research and technology agenda, as 
     periodically updated by the Secretary, in consultation with 
     stakeholders representing the highway community.
       ``(2) Peer review.--
       ``(A) In general.--The Secretary shall require peer review 
     for each report on research carried out using funds made 
     available for this section.
       ``(B) Purposes of peer review.--Peer review of a report 
     under this section shall be carried out to evaluate--
       ``(i) the relevance of the research described in the report 
     with respect to the strategic plan under, and the goals of, 
     this section;
       ``(ii) the research covered by the report, and to recommend 
     modifications to individual project plans;
       ``(iii) the results of the research before publication of 
     those results; and
       ``(iv) the overall outcomes of the research.
       ``(C) Internet availability.--Each report under this 
     section that is received by the Secretary shall be 
     published--
       ``(i) by the Secretary, on the Internet website of the 
     Department of Transportation; and
       ``(ii) by the University Transportation Center.
       ``(3) Approval of plans.--A plan of an institution or 
     consortium described in paragraph (1)(C) shall not be 
     submitted to the Secretary until such time as the advisory 
     committee established under paragraph (1)(D) reviews and 
     approves the plan.
       ``(4) Failure to comply.--If a recipient of a grant under 
     this subsection fails to submit a

[[Page 852]]

     program plan acceptable to the Secretary and in accordance 
     with paragraph (1)(C)--
       ``(A) the recipient shall forfeit the grant and the 
     selection of the recipient as a site for the establishment of 
     a university transportation center; and
       ``(B) the Secretary shall select a replacement recipient 
     for the forfeited grant.
       ``(5) Applicability.--This subsection does not apply to any 
     research funds received in accordance with a competitive 
     contract offered and entered into by the Federal Highway 
     Administration.
       ``(d) Objectives.--Each university transportation center 
     established under subsection (a) or (b) shall carry out--
       ``(1) undergraduate or graduate education programs that 
     include--
       ``(A) multidisciplinary coursework; and
       ``(B) opportunities for students to participate in 
     research;
       ``(2) basic and applied research, the results and products 
     of which shall be judged by peers or other experts in the 
     field so as to advance the body of knowledge in 
     transportation; and
       ``(3) an ongoing program of technology transfer that makes 
     research results available to potential users in such form as 
     will enable the results to be implemented, used, or otherwise 
     applied.
       ``(e) Maintenance of Effort.--To be eligible to receive a 
     grant under this section, an applicant shall--
       ``(1) enter into an agreement with the Secretary to ensure 
     that the applicant will maintain total expenditures from all 
     other sources to establish and operate a university 
     transportation center and related educational and research 
     activities at a level that is at least equal to the average 
     level of those expenditures during the 2 fiscal years before 
     the date on which the grant is provided;
       ``(2) provide the annual institutional contribution 
     required under subsection (c)(1); and
       ``(3) submit to the Secretary, in a timely manner, for use 
     by the Secretary in the preparation of the annual research 
     report under section 508(c)(5) of title 23, an annual report 
     on the projects and activities of the university 
     transportation center for which funds are made available 
     under section 2001 of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003 that contains, at 
     a minimum, for the fiscal year covered by the report, a 
     description of--
       ``(A) the goals of the center;
       ``(B) the educational activities carried out by the center 
     (including a detailed summary of the budget for those 
     educational activities);
       ``(C) teaching activities of faculty at the center;
       ``(D) each research project carried out by the center, 
     including--
       ``(i) the identity and location of each investigator 
     working on a research project;
       ``(ii) the overall funding amount for each research project 
     (including the amounts expended for the project as of the 
     date of the report);
       ``(iii) the current schedule for each research project; and
       ``(iv) the results of each research project through the 
     date of submission of the report, with particular emphasis on 
     results for the fiscal year covered by the report; and
       ``(E) overall technology transfer and implementation 
     efforts of the center.
       ``(f) Program Coordination.--The Secretary shall--
       ``(1) coordinate the research, education, training, and 
     technology transfer activities carried out by recipients of 
     grants under this section; and
       ``(2) establish and operate a clearinghouse for, and 
     disseminate, the results of those activities.
       ``(g) Funding.--
       ``(1) Number and amount of grants.--The Secretary shall 
     make the following grants under this subsection:
       ``(A) Group a.--For each of fiscal years 2004 through 2009, 
     the Secretary shall make a grant in the amount of $20,000,000 
     to each of the institutions in group A (as described in 
     subsection (a)(4)(A)).
       ``(B) Group b.--The Secretary shall make a grant to each of 
     the institutions in group B (as described in subsection 
     (a)(4)(B)) in the amount of--
       ``(i) $4,000,000 for each of fiscal years 2004 and 2005; 
     and
       ``(ii) $6,000,000 for each of fiscal years 2006 and 2007.
       ``(C) Group c.--For each of fiscal years 2004 through 2007, 
     the Secretary shall make a grant in the amount of $10,000,000 
     to each of the institutions in group C (as described in 
     subsection (a)(4)(C)).
       ``(D) Group d.--For each of fiscal years 2004 through 2009, 
     the Secretary shall make a grant in the amount of $25,000,000 
     to each of the institutions in group D (as described in 
     subsection (a)(4)(D)).
       ``(E) Limited grants for groups b and c.--For each of 
     fiscal years 2008 and 2009, of the institutions classified in 
     groups B and C (as described in subsection (a)(4)(B)), the 
     Secretary shall select and make a grant in the amount of 
     $10,000,000 to each of not more than 15 institutions.
       ``(2) Use of funds--
       ``(A) In general.--Of the funds made available for a fiscal 
     year to a university transportation center established under 
     subsection (a) or (b)--
       ``(i) not less than $250,000 shall be used to establish and 
     maintain new faculty positions for the teaching of 
     undergraduate, transportation-related courses;
       ``(ii) not more than $500,000 for the fiscal year, or 
     $1,000,000 in the aggregate, may be used to construct or 
     improve transportation-related laboratory facilities; and
       ``(iii) not more than $300,000 for the fiscal year may be 
     used for student internships of not more than 180 days in 
     duration to enable students to gain experience by working on 
     transportation projects as interns with design or 
     construction firms.
       ``(B) Facilities and administration fee.--Not more than 10 
     percent of any grant made available to a university 
     transportation center (or any institution or consortium that 
     establishes such a center) for a fiscal year may be used to 
     pay to the appropriate nonprofit institution of higher 
     learning any administration and facilities fee (or any 
     similar overhead fee) for the fiscal year.
       ``(3) Limitation on availability of funds.--Funds made 
     available under this subsection shall remain available for 
     obligation for a period of 2 years after September 30 of the 
     fiscal year for which the funds are authorized.

     ``Sec. 511. Multistate corridor operations and management

       ``(a) In General.--The Secretary shall encourage multistate 
     cooperative agreements, coalitions, or other arrangements to 
     promote regional cooperation, planning, and shared project 
     implementation for programs and projects to improve 
     transportation system management and operations.
       ``(b) Interstate Route I-95 Corridor Coalition 
     Transportation Systems Management and Operations.--
       ``(1) In general.--The Secretary shall make grants under 
     this subsection to States to continue intelligent 
     transportation system management and operations in the 
     Interstate Route I-95 corridor coalition region initiated 
     under the Intermodal Surface Transportation Efficiency Act of 
     1991 (Public Law 102-240).
       ``(2) Funding.--Of the amounts made available under section 
     2001(a)(4) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, the Secretary shall use to 
     carry out this subsection--
       ``(A) $8,000,000 for fiscal year 2004;
       ``(B) $10,000,000 for fiscal year 2005;
       ``(C) $12,000,000 for fiscal year 2006;
       ``(D) $12,000,000 for fiscal year 2007;
       ``(E) $12,000,000 for fiscal year 2008; and
       ``(F) $12,000,000 for fiscal year 2009.''.
       (b) Other University Funding.--No university (other than 
     university transportation centers specified in section 510 of 
     title 23, United States Code (as added by subsection (a)) 
     shall receive funds made available under section 2001 to 
     carry out research unless the university is selected to 
     receive the funds--
       (1) through a competitive process that incorporates merit-
     based peer review; and
       (2) based on a proposal submitted to the Secretary by the 
     university in response to a request for proposals issued by 
     the Secretary.
       (c) Conforming Amendment.--Section 5505 of title 49, United 
     States Code, is repealed.

     SEC. 2102. STUDY OF DATA COLLECTION AND STATISTICAL ANALYSIS 
                   EFFORTS.

       (a) Definitions.--In this section:
       (1) Administration.--The term ``Administration'' means the 
     Federal Highway Administration.
       (2) Board.--The term ``Board'' means the Transportation 
     Research Board of the National Academy of Sciences.
       (3) Bureau.--The term ``Bureau'' means the Bureau of 
     Transportation Statistics.
       (4) Department.--The term ``Department'' means the 
     Department of Transportation.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (b) Priority Areas of Effort.--
       (1) Statistical standards.--The Secretary shall direct the 
     Bureau to assume the role of the lead agency in working with 
     other agencies of the Department to establish, by not later 
     the date that is 1 year after the date of enactment of this 
     Act, statistical standards for the Department.
       (2) Statistical analysis effort.--
       (A) In general.--The Bureau shall provide to the Secretary, 
     on an annual basis, an overview of the level of effort 
     expended on statistical analyses by each agency within the 
     Department.
       (B) Duty of agencies.--Each agency of the Department shall 
     provide to the Bureau such information as the Bureau may 
     require in carrying out subparagraph (A).
       (3) National security.--The Bureau shall--
       (A) conduct a study of the ways in which transportation 
     statistics are and may be used for the purpose of national 
     security; and
       (B) submit to the Transportation Security Administration 
     recommendations for means by which the use of transportation 
     statistics for the purpose of national security may be 
     improved.
       (4) Modernization.--The Bureau shall develop new protocols 
     for adapting data collection and delivery efforts in 
     existence as of the date of enactment of this Act to deliver 
     information in a more timely and frequent fashion.
       (c) Study.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall provide a grant 
     to, or enter into a cooperative agreement or contract with, 
     the Board for the conduct of a study of the data collection 
     and statistical analysis efforts of the Department with 
     respect to the modes of surface transportation for which 
     funds are made available under this Act.
       (2) Purpose.--The purpose of the study shall be to provide 
     to the Department information for

[[Page 853]]

     use by agencies of the Department in providing to surface 
     transportation agencies and individuals engaged in the 
     surface transportation field higher quality, and more 
     relevant and timely, data, statistical analyses, and 
     products.
       (3) Content.--The study shall include--
       (A) an examination and analysis of the efforts, analyses, 
     and products (with respect to usefulness and policy 
     relevance) of the Bureau as of the date of the study, as 
     compared with the duties of the Bureau specified in 
     subsections (c) through (f) of section 111 of title 49, 
     United States Code;
       (B) an examination and analysis of data collected by, 
     methods of data collection of, and analyses performed by, 
     agencies within the Department; and
       (C) recommendations relating to--
       (i) the future efforts of the Department in the area of 
     surface transportation with respect to--

       (I) types of data collected;
       (II) methods of data collection;
       (III) types of analyses performed; and
       (IV) products made available by the Secretary to the 
     transportation community and Congress;

       (ii) the means by which the Department may cooperate with 
     State transportation departments to provide technical 
     assistance in the use of data collected by traffic operations 
     centers; and
       (iii) duplication of efforts within the Department, 
     including ways in which--

       (I) the duplication may be reduced or eliminated; and
       (II) each agency of the Department may cooperate with, and 
     complement the efforts of, the others.

       (4) Consultation.--In conducting the study, the Board shall 
     consult with such stakeholders, agencies, and other entities 
     as the Board considers to be appropriate.
       (5) Report.--Not later than 1 year after the date on which 
     a grant is provided, or a cooperative agreement or contract 
     is entered into, for a study under paragraph (1)--
       (A) the Board shall submit to the Secretary, the Committee 
     on Environment and Public Works of the Senate, and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives a final report on the results of the 
     study; and
       (B) the results of the study shall be published--
       (i) by the Secretary, on the Internet website of the 
     Department; and
       (ii) by the Board, on the Internet website of the Board.
       (6) Implementation of results.--The Bureau shall, to the 
     maximum extent practicable, implement any recommendations 
     made with respect to the results of the study under this 
     subsection.
       (7) Compliance.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a review of the study under this 
     subsection.
       (B) Noncompliance.--If the Comptroller General of the 
     United States determines that the Bureau failed to conduct 
     the study under this subsection, the Bureau shall be 
     ineligible to receive funds from the Highway Trust Fund until 
     such time as the Bureau conducts the study under this 
     subsection.
       (d) Conforming Amendments.--
       (1) Section 111 of title 49, United States Code, is 
     amended--
       (A) by redesignating subsection (k) as subsection (m);
       (B) by inserting after subsection (j) the following:
       ``(k) Annual Report.--
       ``(1) In general.--For fiscal year 2004 and each fiscal 
     year thereafter, the Bureau shall prepare and submit to the 
     Secretary an annual report that--
       ``(A) describes progress made in responding to study 
     recommendations for the fiscal year; and
       ``(B) summarizes the activities and expenditure of funds by 
     the Bureau for the fiscal year.
       ``(2) Availability.--The Bureau shall--
       ``(A) make the report described in paragraph (1) available 
     to the public; and
       ``(B) publish the report on the Internet website of the 
     Bureau.
       ``(3) Combination of reports.--The report required under 
     paragraph (1) may be included in or combined with the 
     Transportation Statistics Annual Report required by 
     subsection (j).
       ``(l) Expenditure of Funds.--Funds from the Highway Trust 
     Fund (other than the Mass Transit Account) that are 
     authorized to be appropriated, and made available, in 
     accordance with section 2001(a)(3) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2003 
     shall be used only for the collection and statistical 
     analysis of information relating to surface transportation 
     systems.''; and
       (C) in subsection (m) (as redesignated by subparagraph 
     (A)), by inserting ``surface transportation'' after ``sale 
     of''.
       (2) The analysis for chapter 55 of title 49, United States 
     Code, is amended by striking the item relating to section 
     5505 and inserting the following:


``5505. University transportation centers.''.

     SEC. 2103. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.

       (a) Establishment.--The Secretary shall establish the 
     centers for surface transportation excellence described in 
     subsection (b) to promote high-quality outcomes in support of 
     strategic national programs and activities, including--
       (1) the environment;
       (2) operations;
       (3) surface transportation safety;
       (4) project finance; and
       (5) asset management.
       (b) Centers.--The centers for surface transportation 
     excellence referred to in subsection (a) are--
       (1) a Center for Environmental Excellence to provide 
     technical assistance, information sharing of best practices, 
     and training in the use of tools and decision-making 
     processes to assist States in planning and delivering 
     environmentally-sound surface transportation projects;
       (2) a Center for Operations Excellence to provide support 
     for an integrated and coordinated national program for 
     implementing operations in planning and management (including 
     standards development) for the transportation system in the 
     United States;
       (3) a Center for Excellence in Surface Transportation 
     Safety to implement a program of support for State 
     transportation departments, including--
       (A) the maintenance of an Internet site to provide critical 
     information on safety programs;
       (B) the provision of technical assistance to support a lead 
     State transportation department for each of the 22 safety 
     emphasis areas (as identified by the Secretary); and
       (C) the provision of training and education to enhance 
     knowledge of personnel of State transportation departments in 
     support of safety highway goals;
       (4) a Center for Excellence in Project Finance--
       (A) to provide support to State transportation departments 
     in the development of finance plans and project oversight 
     tools; and
       (B) to develop and offer training in state-of-the-art 
     financing methods to advance projects and leverage funds; and
       (5) a Center for Excellence in Asset Management to develop 
     and conduct research, provide training and education, and 
     disseminate information on the benefits and tools for asset 
     management.
       (c) Program Administration.--
       (1) In general.--Before funds authorized under this section 
     for fiscal years 2005 through 2009 are obligated, the 
     Secretary shall review and approve a multiyear strategic plan 
     to be submitted by each of the centers.
       (2) Timing.--The plan shall be submitted before the 
     beginning of fiscal year 2005 and, subsequently, shall be 
     annually updated.
       (3) Content.--The plan shall include--
       (A) a list of research and technical assistance projects 
     and objectives; and
       (B) a description of any other technology transfer 
     activities, including a summary of training efforts.
       (4) Cooperation and competition.--
       (A) In general.--The Secretary shall carry out this section 
     by making grants to, or entering into contracts, cooperative 
     agreements, and other transactions with--
       (i) the National Academy of Sciences;
       (ii) the American Association of State Highway and 
     Transportation Officials;
       (iii) planning organizations;
       (iv) a Federal laboratory;
       (v) a State agency;
       (vi) an authority, association, institution, or 
     organization; or
       (vii) a for-profit or nonprofit corporation.
       (B) Competition; review.--All parties entering into 
     contracts, cooperative agreements, or other transactions with 
     the Secretary, or receiving grants, to perform research or 
     provide technical assistance under this section shall be 
     selected, to the maximum extent practicable--
       (i) on a competitive basis; and
       (ii) on the basis of the results of peer review of 
     proposals submitted to the Secretary.
       (5) Nonduplication.--The Secretary shall ensure that 
     activities conducted by each of the centers do not duplicate, 
     and to the maximum extent practicable, are integrated and 
     coordinated with similar activities conducted by the Federal 
     Highway Administration, the local technical assistance 
     program, university transportation centers, and other 
     research efforts supported with funds authorized by this 
     title.
       (d) Authorization of Appropriations.--
       (1) In general.--For each of fiscal years 2004 through 
     2009, of the funds made available under section 
     2001(a)(1)(A), the Secretary shall set aside $10,000,000 to 
     carry out this section.
       (2) Allocation of funds.--Of the funds made available under 
     paragraph (1)--
       (A) 20 percent shall be allocated to the Center for 
     Environmental Excellence established under subsection (b)(1);
       (B) 30 percent shall be allocated to the Center for 
     Operations Excellence established under subsection (b)(2);
       (C) 20 percent shall be allocated to the Center for 
     Excellence in Surface Transportation Safety established under 
     subsection (b)(3);
       (D) 10 percent shall be allocated to the Center for 
     Excellence in Project Finance established under subsection 
     (b)(4); and
       (E) 20 percent shall be allocated to the Center for 
     Excellence in Asset Management established under subsection 
     (b)(5).
       (3) Applicability of title 23.--Funds made available under 
     this section shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code, except that the Federal share 
     shall be 100 percent.

         Subtitle C--Intelligent Transportation System Research

     SEC. 2201. INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND 
                   TECHNICAL ASSISTANCE PROGRAM.

       (a) In General.--Chapter 5 of title 23, United States Code 
     (as amended by section 2101), is amended by adding at the end 
     the following:

[[Page 854]]



    ``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND 
                      TECHNICAL ASSISTANCE PROGRAM

     ``Sec. 521. Finding

       ``Congress finds that continued investment in architecture 
     and standards development, research, technical assistance for 
     State and local governments, and systems integration is 
     needed to accelerate the rate at which intelligent 
     transportation systems--
       ``(1) are incorporated into the national surface 
     transportation network; and
       ``(2) as a result of that incorporation, improve 
     transportation safety and efficiency and reduce costs and 
     negative impacts on communities and the environment.

     ``Sec. 522. Goals and purposes

       ``(a) Goals.--The goals of the intelligent transportation 
     system research and technical assistance program include--
       ``(1) enhancement of surface transportation efficiency and 
     facilitation of intermodalism and international trade--
       ``(A) to meet a significant portion of future 
     transportation needs, including public access to employment, 
     goods, and services; and
       ``(B) to reduce regulatory, financial, and other 
     transaction costs to public agencies and system users;
       ``(2) the acceleration of the use of intelligent 
     transportation systems to assist in the achievement of 
     national transportation safety goals, including the 
     enhancement of safe operation of motor vehicles and 
     nonmotorized vehicles, with particular emphasis on decreasing 
     the number and severity of collisions;
       ``(3) protection and enhancement of the natural environment 
     and communities affected by surface transportation, with 
     particular emphasis on assisting State and local governments 
     in achieving national environmental goals;
       ``(4) accommodation of the needs of all users of surface 
     transportation systems, including--
       ``(A) operators of commercial vehicles, passenger vehicles, 
     and motorcycles;
       ``(B) users of public transportation users (with respect to 
     intelligent transportation system user services); and
       ``(C) individuals with disabilities; and
       ``(5)(A) improvement of the ability of the United States to 
     respond to emergencies and natural disasters; and
       ``(B) enhancement of national security and defense 
     mobility.
       ``(b) Purposes.--The Secretary shall carry out activities 
     under the intelligent transportation system research and 
     technical assistance program to, at a minimum--
       ``(1) assist in the development of intelligent 
     transportation system technologies;
       ``(2) ensure that Federal, State, and local transportation 
     officials have adequate knowledge of intelligent 
     transportation systems for full consideration in the 
     transportation planning process;
       ``(3) improve regional cooperation, interoperability, and 
     operations for effective intelligent transportation system 
     performance;
       ``(4) promote the innovative use of private resources;
       ``(5) assist State transportation departments in developing 
     a workforce capable of developing, operating, and maintaining 
     intelligent transportation systems;
       ``(6) maintain an updated national ITS architecture and 
     consensus-based standards while ensuring an effective Federal 
     presence in the formulation of domestic and international ITS 
     standards;
       ``(7) advance commercial vehicle operations components of 
     intelligent transportation systems--
       ``(A) to improve the safety and productivity of commercial 
     vehicles and drivers; and
       ``(B) to reduce costs associated with commercial vehicle 
     operations and Federal and State commercial vehicle 
     regulatory requirements;
       ``(8) evaluate costs and benefits of intelligent 
     transportation systems projects;
       ``(9) improve, as part of the Archived Data User Service 
     and in cooperation with the Bureau of Transportation 
     Statistics, the collection of surface transportation system 
     condition and performance data through the use of intelligent 
     transportation system technologies; and
       ``(10) ensure access to transportation information and 
     services by travelers of all ages.

     ``Sec. 523. Definitions

       ``In this subchapter:
       ``(1) Commercial vehicle information systems and 
     networks.--The term `commercial vehicle information systems 
     and networks' means the information systems and 
     communications networks that support commercial vehicle 
     operations.
       ``(2) Commercial vehicle operations.--
       ``(A) In general.--The term `commercial vehicle operations' 
     means motor carrier operations and motor vehicle regulatory 
     activities associated with the commercial movement of goods 
     (including hazardous materials) and passengers.
       ``(B) Inclusions.--The term `commercial vehicle 
     operations', with respect to the public sector, includes--
       ``(i) the issuance of operating credentials;
       ``(ii) the administration of motor vehicle and fuel taxes; 
     and
       ``(iii) roadside safety and border crossing inspection and 
     regulatory compliance operations.
       ``(3) Intelligent transportation infrastructure.--The term 
     `intelligent transportation infrastructure' means fully 
     integrated public sector intelligent transportation system 
     components, as defined by the Secretary.
       ``(4) Intelligent transportation system.--The term 
     `intelligent transportation system' means electronics, 
     communications, or information processing used singly or in 
     combination to improve the efficiency or safety of a surface 
     transportation system.
       ``(5) National its architecture.--The term `national ITS 
     architecture' means the common framework for interoperability 
     adopted by the Secretary that defines--
       ``(A) the functions associated with intelligent 
     transportation system user services;
       ``(B) the physical entities or subsystems within which the 
     functions reside;
       ``(C) the data interfaces and information flows between 
     physical subsystems; and
       ``(D) the communications requirements associated with the 
     information flows.
       ``(6) Standard.--The term `standard' means a document 
     that--
       ``(A) contains technical specifications or other precise 
     criteria for intelligent transportation systems that are to 
     be used consistently as rules, guidelines, or definitions of 
     characteristics so as to ensure that materials, products, 
     processes, and services are fit for their purposes; and
       ``(B) may--
       ``(i) support the national ITS architecture; and
       ``(ii) promote--

       ``(I) the widespread use and adoption of intelligent 
     transportation system technology as a component of the 
     surface transportation systems of the United States; and
       ``(II) interoperability among intelligent transportation 
     system technologies implemented throughout the States.

     ``Sec. 524. General authorities and requirements

       ``(a) Scope.--Subject to this subchapter, the Secretary 
     shall carry out an ongoing intelligent transportation system 
     research program--
       ``(1) to research, develop, and operationally test 
     intelligent transportation systems; and
       ``(2) to provide technical assistance in the nationwide 
     application of those systems as a component of the surface 
     transportation systems of the United States.
       ``(b) Policy.--Intelligent transportation system 
     operational tests and projects funded under this subchapter 
     shall encourage, but not displace, public-private 
     partnerships or private sector investment in those tests and 
     projects.
       ``(c) Cooperation With Governmental, Private, and 
     Educational Entities.--The Secretary shall carry out the 
     intelligent transportation system research and technical 
     assistance program in cooperation with--
       ``(1) State and local governments and other public 
     entities;
       ``(2) the private sector;
       ``(3) Federal laboratories (as defined in section 501); and
       ``(4) colleges and universities, including historically 
     black colleges and universities and other minority 
     institutions of higher education.
       ``(d) Consultation With Federal Officials.--In carrying out 
     the intelligent transportation system research program, the 
     Secretary, as appropriate, shall consult with--
       ``(1) the Secretary of Commerce;
       ``(2) the Secretary of the Treasury;
       ``(3) the Administrator of the Environmental Protection 
     Agency;
       ``(4) the Director of the National Science Foundation; and
       ``(5) the Secretary of Homeland Security.
       ``(e) Technical Assistance, Training, and Information.--The 
     Secretary may provide technical assistance, training, and 
     information to State and local governments seeking to 
     implement, operate, maintain, or evaluate intelligent 
     transportation system technologies and services.
       ``(f) Transportation Planning.--The Secretary may provide 
     funding to support adequate consideration of transportation 
     system management and operations (including intelligent 
     transportation systems) within metropolitan and statewide 
     transportation planning processes.
       ``(g) Information Clearinghouse.--The Secretary shall--
       ``(1) maintain a repository for technical and safety data 
     collected as a result of federally sponsored projects carried 
     out under this subchapter; and
       ``(2) on request, make that information (except for 
     proprietary information and data) readily available to all 
     users of the repository at an appropriate cost.
       ``(h) Advisory Committees.--
       ``(1) In general.--In carrying out this subchapter, the 
     Secretary--
       ``(A) may use 1 or more advisory committees; and
       ``(B) shall designate a public-private organization, the 
     members of which participate in on-going research, planning, 
     standards development, deployment, and marketing of ITS 
     programs, products, and services, and coordinate the 
     development and deployment of intelligent transportation 
     systems in the United States, as the Federal advisory 
     committee authorized by section 5204(h) of the Transportation 
     Equity Act for the 21st Century (112 Stat. 454).
       ``(2) Funding.--Of the amount made available to carry out 
     this subchapter, the Secretary may use $1,500,000 for each 
     fiscal year for advisory committees described in paragraph 
     (1).
       ``(3) Applicability of federal advisory committee act.--Any 
     advisory committee described in paragraph (1) shall be 
     subject to the Federal Advisory Committee Act (5 U.S.C. 
     App.).
       ``(i) Procurement Methods.--The Secretary shall develop and 
     provide appropriate technical assistance and guidance to 
     assist State and local agencies in evaluating and selecting 
     appropriate methods of deployment and procurement for 
     intelligent transportation system

[[Page 855]]

     projects carried out using funds made available from the 
     Highway Trust Fund, including innovative and nontraditional 
     methods such as Information Technology Omnibus Procurement 
     (as developed by the Secretary).
       ``(j) Evaluations.--
       ``(1) Guidelines and requirements.--
       ``(A) In general.--The Secretary shall issue revised 
     guidelines and requirements for the evaluation of operational 
     tests and other intelligent transportation system projects 
     carried out under this subchapter.
       ``(B) Objectivity and independence.--The guidelines and 
     requirements issued under subparagraph (A) shall include 
     provisions to ensure the objectivity and independence of the 
     evaluator so as to avoid any real or apparent conflict of 
     interest or potential influence on the outcome by--
       ``(i) parties to any such test; or
       ``(ii) any other formal evaluation carried out under this 
     subchapter.
       ``(C) Funding.--The guidelines and requirements issued 
     under subparagraph (A) shall establish evaluation funding 
     levels based on the size and scope of each test that ensure 
     adequate evaluation of the results of the test or project.
       ``(2) Special rule.--Any survey, questionnaire, or 
     interview that the Secretary considers necessary to carry out 
     the evaluation of any test or program assessment activity 
     under this subchapter shall not be subject to chapter 35 of 
     title 44.

     ``Sec. 525. National ITS Program Plan

       ``(a) In General.--
       ``(1) Updates.--Not later than 1 year after the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003, the Secretary, in 
     consultation with interested stakeholders (including State 
     transportation departments) shall develop a 5-year National 
     ITS Program Plan.
       ``(2) Scope.--The National ITS Program Plan shall--
       ``(A) specify the goals, objectives, and milestones for the 
     research and deployment of intelligent transportation systems 
     in the contexts of--
       ``(i) major metropolitan areas;
       ``(ii) smaller metropolitan and rural areas; and
       ``(iii) commercial vehicle operations;
       ``(B) specify the manner in which specific programs and 
     projects will achieve the goals, objectives, and milestones 
     referred to in subparagraph (A), including consideration of a 
     5-year timeframe for the goals and objectives;
       ``(C) identify activities that provide for the dynamic 
     development, testing, and necessary revision of standards and 
     protocols to promote and ensure interoperability in the 
     implementation of intelligent transportation system 
     technologies, including actions taken to establish standards; 
     and
       ``(D) establish a cooperative process with State and local 
     governments for--
       ``(i) determining desired surface transportation system 
     performance levels; and
       ``(ii) developing plans for accelerating the incorporation 
     of specific intelligent transportation system capabilities 
     into surface transportation systems.
       ``(b) Reporting.--The National ITS Program Plan shall be 
     transmitted and biennially updated as part of the surface 
     transportation research and technology development strategic 
     plan developed under section 508(c).

     ``Sec. 526. National ITS architecture and standards

       ``(a) In General.--
       ``(1) Development, implementation, and maintenance.--In 
     accordance with section 12(d) of the National Technology 
     Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110 
     Stat. 783), the Secretary shall develop, implement, and 
     maintain a national ITS architecture and supporting standards 
     and protocols to promote the widespread use and evaluation of 
     intelligent transportation system technology as a component 
     of the surface transportation systems of the United States.
       ``(2) Interoperability and efficiency.--To the maximum 
     extent practicable, the national ITS architecture shall 
     promote interoperability among, and efficiency of, 
     intelligent transportation system technologies implemented 
     throughout the United States.
       ``(3) Use of standards development organizations.--In 
     carrying out this section, the Secretary shall use the 
     services of such standards development organizations as the 
     Secretary determines to be appropriate.
       ``(b) Provisional Standards.--
       ``(1) In general.--If the Secretary finds that the 
     development or selection of an intelligent transportation 
     system standard jeopardizes the timely achievement of the 
     objectives identified in subsection (a), the Secretary may 
     establish a provisional standard--
       ``(A) after consultation with affected parties; and
       ``(B) by using, to the maximum extent practicable, the work 
     product of appropriate standards development organizations.
       ``(2) Critical standards.--If a standard identified by the 
     Secretary as critical has not been adopted and published by 
     the appropriate standards development organization by the 
     date of enactment of this subchapter, the Secretary shall 
     establish a provisional standard--
       ``(A) after consultation with affected parties; and
       ``(B) by using, to the maximum extent practicable, the work 
     product of appropriate standards development organizations.
       ``(3) Period of effectiveness.--A provisional standard 
     established under paragraph (1) or (2) shall--
       ``(A) be published in the Federal Register; and
       ``(B) remain in effect until such time as the appropriate 
     standards development organization adopts and publishes a 
     standard.
       ``(c) Waiver of Requirement To Establish Provisional 
     Critical Standard.--
       ``(1) In general.--The Secretary may waive the requirement 
     under subsection (b)(2) to establish a provisional standard 
     if the Secretary determines that additional time would be 
     productive in, or that establishment of a provisional 
     standard would be counterproductive to, the timely 
     achievement of the objectives identified in subsection (a).
       ``(2) Notice.--The Secretary shall publish in the Federal 
     Register a notice that describes--
       ``(A) each standard for which a waiver of the provisional 
     standard requirement is granted under paragraph (1);
       ``(B) the reasons for and effects of granting the waiver; 
     and
       ``(C) an estimate as to the date on which the standard is 
     expected to be adopted through a process consistent with 
     section 12(d) of the National Technology Transfer and 
     Advancement Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783).
       ``(3) Withdrawal of waiver.--
       ``(A) In general.--The Secretary may withdraw a waiver 
     granted under paragraph (1) at any time.
       ``(B) Notice.--On withdrawal of a waiver, the Secretary 
     shall publish in the Federal Register a notice that 
     describes--
       ``(i) each standard for which the waiver has been 
     withdrawn; and
       ``(ii) the reasons for withdrawing the waiver.
       ``(d) Conformity With National ITS Architecture.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the Secretary shall ensure that intelligent 
     transportation system projects carried out using funds made 
     available from the Highway Trust Fund conform to the national 
     ITS architecture, applicable standards or provisional 
     standards, and protocols developed under subsection (a).
       ``(2) Discretion of secretary.--The Secretary may authorize 
     exceptions to paragraph (1) for projects designed to achieve 
     specific research objectives outlined in--
       ``(A) the National ITS Program Plan under section 525; or
       ``(B) the surface transportation research and technology 
     development strategic plan developed under section 508(c).
       ``(3) Exceptions.--Paragraph (1) shall not apply to funds 
     used for operation or maintenance of an intelligent 
     transportation system in existence on the date of enactment 
     of this subchapter.

     ``Sec. 527. Commercial vehicle information systems and 
       networks deployment

       ``(a) Definitions.--In this section:
       ``(1) Commercial vehicle information systems and 
     networks.--The term `commercial vehicle information systems 
     and networks' means the information systems and 
     communications networks that provide the capability to--
       ``(A) improve the safety of commercial vehicle operations;
       ``(B) increase the efficiency of regulatory inspection 
     processes to reduce administrative burdens by advancing 
     technology to facilitate inspections and increase the 
     effectiveness of enforcement efforts;
       ``(C) advance electronic processing of registration 
     information, driver licensing information, fuel tax 
     information, inspection and crash data, and other safety 
     information;
       ``(D) enhance the safe passage of commercial vehicles 
     across the United States and across international borders; 
     and
       ``(E) promote the communication of information among the 
     States and encourage multistate cooperation and corridor 
     development.
       ``(2) Commercial vehicle operations.--
       ``(A) In general.--The term `commercial vehicle operations' 
     means motor carrier operations and motor vehicle regulatory 
     activities associated with the commercial movement of goods 
     (including hazardous materials) and passengers.
       ``(B) Inclusions.--The term `commercial vehicle 
     operations', with respect to the public sector, includes--
       ``(i) the issuance of operating credentials;
       ``(ii) the administration of motor vehicle and fuel taxes; 
     and
       ``(iii) the administration of roadside safety and border 
     crossing inspection and regulatory compliance operations.
       ``(3) Core deployment.--The term `core deployment' means 
     the deployment of systems in a State necessary to provide the 
     State with--
       ``(A) safety information exchange to--
       ``(i) electronically collect and transmit commercial 
     vehicle and driver inspection data at a majority of 
     inspection sites;
       ``(ii) connect to the Safety and Fitness Electronic Records 
     system for access to--

       ``(I) interstate carrier and commercial vehicle data;
       ``(II) summaries of past safety performance; and
       ``(III) commercial vehicle credentials information; and

       ``(iii) exchange carrier data and commercial vehicle safety 
     and credentials information within the State and connect to 
     Safety and Fitness Electronic Records system for access to 
     interstate carrier and commercial vehicle data;
       ``(B) interstate credentials administration to--
       ``(i)(I) perform end-to-end (including carrier application) 
     jurisdiction application processing, and credential issuance, 
     of at least the International Registration Plan and 
     International Fuel Tax Agreement credentials; and

[[Page 856]]

       ``(II) extend the processing to other credentials, 
     including intrastate, titling, oversize or overweight 
     requirements, carrier registration, and hazardous materials;
       ``(ii) connect to the International Registration Plan and 
     International Fuel Tax Agreement clearinghouses; and
       ``(iii)(I) have at least 10 percent of the transaction 
     volume handled electronically; and
       ``(II) have the capability to add more carriers and to 
     extend to branch offices where applicable; and
       ``(C) roadside electronic screening to electronically 
     screen transponder-equipped commercial vehicles at a minimum 
     of 1 fixed or mobile inspection site and to replicate the 
     screening at other sites.
       ``(4) Expanded deployment.--The term `expanded deployment' 
     means the deployment of systems in a State that--
       ``(A) exceed the requirements of a core deployment of 
     commercial vehicle information systems and networks;
       ``(B) improve safety and the productivity of commercial 
     vehicle operations; and
       ``(C) enhance transportation security.
       ``(b) Program.--The Secretary shall carry out a commercial 
     vehicle information systems and networks program to--
       ``(1) improve the safety and productivity of commercial 
     vehicles and drivers; and
       ``(2) reduce costs associated with commercial vehicle 
     operations and Federal and State commercial vehicle 
     regulatory requirements.
       ``(c) Purpose.--It is the purpose of the program to advance 
     the technological capability and promote the deployment of 
     intelligent transportation system applications for commercial 
     vehicle operations, including commercial vehicle, commercial 
     driver, and carrier-specific information systems and 
     networks.
       ``(d) Core Deployment Grants.--
       ``(1) In general.--The Secretary shall make grants to 
     eligible States for the core deployment of commercial vehicle 
     information systems and networks.
       ``(2) Eligibility.--To be eligible for a core deployment 
     grant under this subsection, a State shall--
       ``(A) have a commercial vehicle information systems and 
     networks program plan and a top level system design approved 
     by the Secretary;
       ``(B) certify to the Secretary that the commercial vehicle 
     information systems and networks deployment activities of the 
     State (including hardware procurement, software and system 
     development, and infrastructure modifications)--
       ``(i) are consistent with the national intelligent 
     transportation systems and commercial vehicle information 
     systems and networks architectures and available standards; 
     and
       ``(ii) promote interoperability and efficiency, to the 
     maximum extent practicable; and
       ``(C) agree to execute interoperability tests developed by 
     the Federal Motor Carrier Safety Administration to verify 
     that the systems of the State conform with the national 
     intelligent transportation systems architecture, applicable 
     standards, and protocols for commercial vehicle information 
     systems and networks.
       ``(3) Amount of grants.--The maximum aggregate amount a 
     State may receive under this subsection for the core 
     deployment of commercial vehicle information systems and 
     networks may not exceed $2,500,000, including funds received 
     under section 2001(a) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003 for the core 
     deployment of commercial vehicle information systems and 
     networks.
       ``(4) Use of funds.--
       ``(A) In general.--Subject to subparagraph (B), funds from 
     a grant under this subsection may only be used for the core 
     deployment of commercial vehicle information systems and 
     networks.
       ``(B) Remaining funds.--An eligible State that has 
     completed the core deployment of commercial vehicle 
     information systems and networks, or completed the deployment 
     before core deployment grant funds are expended, may use the 
     remaining core deployment grant funds for the expanded 
     deployment of commercial vehicle information systems and 
     networks in the State.
       ``(e) Expanded Deployment Grants.--
       ``(1) In general.--For each fiscal year, from the funds 
     remaining after the Secretary has made core deployment grants 
     under subsection (d), the Secretary may make grants to each 
     eligible State, on request, for the expanded deployment of 
     commercial vehicle information systems and networks.
       ``(2) Eligibility.--Each State that has completed the core 
     deployment of commercial vehicle information systems and 
     networks shall be eligible for an expanded deployment grant.
       ``(3) Amount of grants.--Each fiscal year, the Secretary 
     may distribute funds available for expanded deployment grants 
     equally among the eligible States in an amount that does not 
     exceed $1,000,000 for each State.
       ``(4) Use of funds.--A State may use funds from a grant 
     under this subsection only for the expanded deployment of 
     commercial vehicle information systems and networks.
       ``(f) Federal Share.--The Federal share of the cost of a 
     project payable from funds made available to carry out this 
     section shall be the share applicable under section 120(b), 
     as adjusted under subsection (d) of that section.
       ``(g) Funding.--Funds authorized to be appropriated to 
     carry out this section shall be available for obligation in 
     the same manner and to the same extent as if the funds were 
     apportioned under chapter 1, except that the funds shall 
     remain available until expended.

     ``Sec. 528. Research and development

       ``(a) In General.--The Secretary shall carry out a 
     comprehensive program of intelligent transportation system 
     research, development, and operational tests of intelligent 
     vehicles and intelligent infrastructure systems, and other 
     similar activities that are necessary to carry out this 
     subchapter.
       ``(b) Priority Areas.--Under the program, the Secretary 
     shall give priority to funding projects that--
       ``(1) assist in the development of an interconnected 
     national intelligent transportation system network that--
       ``(A) improves the reliability of the surface 
     transportation system;
       ``(B) supports national security;
       ``(C) reduces, by at least 20 percent, the cost of 
     manufacturing, deploying, and operating intelligent 
     transportation systems network components;
       ``(D) could assist in deployment of the Armed Forces in 
     response to a crisis; and
       ``(E) improves response to, and evacuation of the public 
     during, an emergency situation;
       ``(2) address traffic management, incident management, 
     transit management, toll collection traveler information, or 
     highway operations systems with goals of--
       ``(A) reducing metropolitan congestion by 5 percent by 
     2010;
       ``(B) ensuring that a national, interoperable 511 system, 
     along with a national traffic information system that 
     includes a user-friendly, comprehensive website, is fully 
     implemented for use by travelers throughout the United States 
     by September 30, 2010; and
       ``(C)(i) improving incident management response, 
     particularly in rural areas, so that rural emergency response 
     times are reduced by an average of 10 minutes; and
       ``(ii) subject to subsection (d), improving communication 
     between emergency care providers and trauma centers;
       ``(3) address traffic management, incident management, 
     transit management, toll collection, traveler information, or 
     highway operations systems;
       ``(4) conduct operational tests of the integration of at 
     least 3 crash-avoidance technologies in passenger vehicles;
       ``(5) incorporate human factors research, including the 
     science of the driving process;
       ``(6) facilitate the integration of intelligent 
     infrastructure, vehicle, and control technologies;
       ``(7) incorporate research on the impact of environmental, 
     weather, and natural conditions on intelligent transportation 
     systems, including the effects of cold climates;
       ``(8) as determined by the Secretary, will improve the 
     overall safety performance of vehicles and roadways, 
     including the use of real-time setting of speed limits 
     through the use of speed management technology;
       ``(9) examine--
       ``(A) the application to intelligent transportation systems 
     of appropriately modified existing technologies from other 
     industries; and
       ``(B) the development of new, more robust intelligent 
     transportation systems technologies and instrumentation;
       ``(10) develop and test communication technologies that--
       ``(A) are based on an assessment of the needs of officers 
     participating in a motor carrier safety program funded under 
     section 31104 of title 49;
       ``(B) take into account the effectiveness and adequacy of 
     available technology;
       ``(C) address systems integration, connectivity, and 
     interoperability challenges; and
       ``(D) provide the means for officers participating in a 
     motor carrier safety program funded under section 31104 of 
     title 49 to directly assess, without an intermediary, current 
     and accurate safety and regulatory information on motor 
     carriers, commercial motor vehicles and drivers at roadside 
     or mobile inspection facilities;
       ``(11) enhance intermodal use of intelligent transportation 
     systems for diverse groups, including for emergency and 
     health-related services;
       ``(12) improve sensing and wireless communications that 
     provide real-time information regarding congestion and 
     incidents;
       ``(13) develop and test high-accuracy, lane-level, real-
     time accessible digital map architectures that can be used by 
     intelligent vehicles and intelligent infrastructure elements 
     to facilitate safety and crash avoidance (including 
     establishment of national standards for an open-architecture 
     digital map of all public roads that is compatible with 
     electronic 9-1-1 services);
       ``(14) encourage the dual-use of intelligent transportation 
     system technologies (such as wireless communications) for--
       ``(A) emergency services;
       ``(B) road pricing; and
       ``(C) local economic development; and
       ``(15) advance the use of intelligent transportation 
     systems to facilitate high-performance transportation 
     systems, such as through--
       ``(A) congestion-pricing;
       ``(B) real-time facility management;
       ``(C) rapid-emergency response; and
       ``(D) just-in-time transit.
       ``(c) Operational Tests.--Operational tests conducted under 
     this section shall be designed for--
       ``(1) the collection of data to permit objective evaluation 
     of the results of the tests;
       ``(2) the derivation of cost-benefit information that is 
     useful to others contemplating deployment of similar systems; 
     and
       ``(3) the development and implementation of standards.
       ``(d) Federal Share.--The Federal share of the costs of 
     operational tests under subsection (a) shall not exceed 80 
     percent.

[[Page 857]]



     ``Sec. 529. Use of funds

       ``(a) In General.--For each fiscal year, not more than 
     $5,000,000 of the funds made available to carry out this 
     subchapter shall be used for intelligent transportation 
     system outreach, public relations, displays, tours, and 
     brochures.
       ``(b) Applicability.--Subsection (a) shall not apply to 
     intelligent transportation system training, scholarships, or 
     the publication or distribution of research findings, 
     technical guidance, or similar documents.''.
       (b) Conforming Amendment.--Title V of the Transportation 
     Equity Act for the 21st Century is amended by striking 
     subtitle C (23 U.S.C. 502 note; 112 Stat. 452).

               TITLE III--INTERMODAL PASSENGER FACILITIES

     SEC. 3001. INTERMODAL PASSENGER FACILITIES.

       (a) In General.--Chapter 55 of title 49, United States 
     Code, is amended by adding the following at the end:

           ``SUBCHAPTER III--INTERMODAL PASSENGER FACILITIES

     Sec. 5571. Policy and purposes

       ``(a) Development and Enhancement of Intermodal Passenger 
     Facilities.--It is in the economic interest of the United 
     States to improve the efficiency of public surface 
     transportation modes by ensuring their connection with and 
     access to intermodal passenger terminals, thereby 
     streamlining the transfer of passengers among modes, 
     enhancing travel options, and increasing passenger 
     transportation operating efficiencies.
       ``(b) General Purposes.--The purposes of this subchapter 
     are to accelerate intermodal integration among North 
     America's passenger transportation modes through--
       ``(1) ensuring intercity public transportation access to 
     intermodal passenger facilities;
       ``(2) encouraging the development of an integrated system 
     of public transportation information; and
       ``(3) providing intercity bus intermodal passenger facility 
     grants.

     Sec. 5572. Definitions

     ``In this subchapter--
       ``(1) `capital project' means a project for--
       ``(A) acquiring, constructing, improving, or renovating an 
     intermodal facility that is related physically and 
     functionally to intercity bus service and establishes or 
     enhances coordination between intercity bus service and 
     transportation, including aviation, commuter rail, intercity 
     rail, public transportation, seaports, and the National 
     Highway System, such as physical infrastructure associated 
     with private bus operations at existing and new intermodal 
     facilities, including special lanes, curb cuts, ticket kiosks 
     and counters, baggage and package express storage, employee 
     parking, office space, security, and signage; and
       ``(B) establishing or enhancing coordination between 
     intercity bus service and transportation, including aviation, 
     commuter rail, intercity rail, public transportation, and the 
     National Highway System through an integrated system of 
     public transportation information.
       ``(2) `commuter service' means service designed primarily 
     to provide daily work trips within the local commuting area.
       ``(3) `intercity bus service' means regularly scheduled bus 
     service for the general public which operates with limited 
     stops over fixed routes connecting two or more urban areas 
     not in close proximity, which has the capacity for 
     transporting baggage carried by passengers, and which makes 
     meaningful connections with scheduled intercity bus service 
     to more distant points, if such service is available and may 
     include package express service, if incidental to passenger 
     transportation, but does not include air, commuter, water or 
     rail service.
       ``(4) `intermodal passenger facility' means passenger 
     terminal that does, or can be modified to, accommodate 
     several modes of transportation and related facilities, 
     including some or all of the following: intercity rail, 
     intercity bus, commuter rail, intracity rail transit and bus 
     transportation, airport limousine service and airline ticket 
     offices, rent-a-car facilities, taxis, private parking, and 
     other transportation services.
       ``(5) `local governmental authority' includes--
       ``(A) a political subdivision of a State;
       ``(B) an authority of at least one State or political 
     subdivision of a State;
       ``(C) an Indian tribe; and
       ``(D) a public corporation, board, or commission 
     established under the laws of the State.
       ``(6) `owner or operator of a public transportation 
     facility' means an owner or operator of intercity-rail, 
     intercity-bus, commuter-rail, commuter-bus, rail-transit, 
     bus-transit, or ferry services.
       ``(7) `recipient' means a State or local governmental 
     authority or a nonprofit organization that receives a grant 
     to carry out this section directly from the Federal 
     government.
       ``(8) `Secretary' means the Secretary of Transportation.
       ``(9) `State' means a State of the United States, the 
     District of Columbia, Puerto Rico, the Northern Mariana 
     Islands, Guam, American Samoa, and the Virgin Islands.
       ``(10) `urban area' means an area that includes a 
     municipality or other built-up place that the Secretary, 
     after considering local patterns and trends of urban growth, 
     decides is appropriate for a local public transportation 
     system to serve individuals in the locality.

     ``Sec. 5573. Assurance of access to intermodal passenger 
       facilities

       ``Intercity buses and other modes of transportation shall, 
     to the maximum extent practicable, have access to publicly 
     funded intermodal passenger facilities, including those 
     passenger facilities seeking funding under section 5574.

     ``Sec. 5574. Intercity bus intermodal passenger facility 
       grants

       ``(a) General Authority.--The Secretary of Transportation 
     may make grants under this section to recipients in financing 
     a capital project, as defined in section 5572 of this 
     chapter, only if the Secretary finds that the proposed 
     project is justified and has adequate financial commitment.
       ``(b) Competitive Grant Selection.--The Secretary shall 
     conduct a national solicitation for applications for grants 
     under this section. Grantees shall be selected on a 
     competitive basis.
       ``(c) Share of Net Project Costs.--A grant shall not exceed 
     50 percent of the net project cost, as determined by the 
     Secretary.
       ``(d) Regulations.--The Secretary may promulgate such 
     regulations as are necessary to carry out this section.

     ``Sec. 5575. Funding

       ``(a) Highway Account.--
       ``(1) There is authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) to 
     carry out this subchapter $10,000,000 for each of fiscal 
     years 2005 through 2009.
       ``(2) The funding made available under paragraph (1) of 
     this subsection shall be available for obligation in the same 
     manner as if such funds were apportioned under chapter 1 of 
     title 23 and shall be subject to any obligation limitation 
     imposed on funds for Federal-aid highways and highway safety 
     construction programs.
       ``(b) Period of Availability.--Amounts made available by 
     subsection (a) of this section shall remain available until 
     expended.''.
       (b) Conforming Amendment.--The analysis for chapter 55 of 
     title 49, United States Code, is amended by adding at the end 
     the following:


            ``Subchapter III--Intermodal Passenger Facilities

Sec.
``5571. Policy and Purposes.
``5572. Definitions.
``5573. Assurance of access to intermodal facilities.
``5574. Intercity bus intermodal facility grants.
``5575. Funding.''.

     TITLE IV--FEDERAL AID IN SPORT FISH RESTORATION ACT AMENDMENTS

     SEC. 4001. AMENDMENT OF FEDERAL AID IN FISH RESTORATION ACT.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Act entitled ``An Act to provide that 
     the United States shall aid the States in fish restoration 
     and management projects, and for other purposes,'' approved 
     August 9, 1950 (64 Stat. 430; 16 U.S.C. 777 et seq.).

     SEC. 4002. AUTHORIZATION OF APPROPRIATIONS.

       Section 3 (16 U.S.C. 777b) is amended--
       (1) by striking ``the succeeding fiscal year.'' in the 
     third sentence and inserting ``succeeding fiscal years.''; 
     and
       (2) by striking ``in carrying on the research program of 
     the Fish and Wildlife Service in respect to fish of material 
     value for sport and recreation.'' and inserting ``to 
     supplement the 55.3 percent of each annual appropriation to 
     be apportioned among the States, as provided for in section 
     4(b) of this Act.''.

     SEC. 4003. DIVISION OF ANNUAL APPROPRIATIONS.

       Section 4 (16 U.S.C. 777c) is amended--
       (1) by striking subsections (a) through (d) and 
     redesignating subsections (e), (f), and (g) as subsections 
     (b), (c), and (d);
       (2) by inserting before subsection (b), as redesignated, 
     the following:
       ``(a) In General.--For fiscal years 2004 through 2009, each 
     annual appropriation made in accordance with the provisions 
     of section 3 of this Act shall be distributed as follows:
       ``(1) Coastal wetlands.--18 percent to the Secretary of the 
     Interior for distribution as provided in the Coastal Wetlands 
     Planning, Protection, and Restoration Act (16 U.S.C. 3951 et 
     seq.).
       ``(2) Boating safety.--18 percent to the Secretary of 
     Homeland Security for State recreational boating safety 
     programs under section 13106 of title 46, United States Code.
       ``(3) Clean vessel act.--1.9 percent to the Secretary of 
     the Interior for qualified projects under section 5604(c) of 
     the Clean Vessel Act of 1992 (33 U.S.C. 1322 note).
       ``(4) Boating infrastructure.--1.9 percent to the Secretary 
     of the Interior for obligation for qualified projects under 
     section 7404(d) of the Sportfishing and Boating Safety Act of 
     1998 (16 U.S.C. 777g-1(d)).
       ``(5) National outreach and communications.--1.9 percent to 
     the Secretary of the Interior for the National Outreach and 
     Communications Program under section 8(d) of this Act. Such 
     amounts shall remain available for 3 fiscal years, after 
     which any portion thereof that is unobligated by the 
     Secretary for that program may be expended by the Secretary 
     under subsection (b) of this section.
       ``(6) Set-aside for expenses for administration of this 
     chapter.--
       ``(A) In general.--2.1 percent to the Secretary of the 
     Interior for expenses for administration incurred in 
     implementation of this Act, in accordance with this section, 
     section 9, and section 14 of this Act.
       ``(B) Apportionment of unobligated funds.--If any portion 
     of the amount made

[[Page 858]]

     available to the Secretary under subparagraph (A) remains 
     unexpended and unobligated at the end of a fiscal year, that 
     portion shall be apportioned among the States, on the same 
     basis and in the same manner as other amounts made available 
     under this Act are apportioned among the States under 
     subsection (b) of this section, within 60 days after the end 
     of that fiscal year. Any amount apportioned among the States 
     under this subparagraph shall be in addition to any amounts 
     otherwise available for apportionment among the States under 
     subsection (b) for the fiscal year.'';
       (3) by striking ``of the Interior, after the distribution, 
     transfer, use, and deduction under subsections (a), (b), (c), 
     and (d), respectively, and after deducting amounts used for 
     grants under section 14, shall apportion the remainder'' in 
     subsection (b), as redesignated, and inserting ``shall 
     apportion 55.3 percent'';
       (4) by striking ``per centum'' each place it appears in 
     subsection (b), as redesignated, and inserting ``percent'';
       (5) by striking ``subsections (a), (b)(3)(A), (b)(3)(B), 
     and (c)'' in paragraph (1) of subsection (d), as 
     redesignated, and inserting ``paragraphs (1), (3), (4), and 
     (5) of subsection (a)''; and
       (6) by adding at the end the following:
       ``(e) Transfer of Certain Funds.--Amounts available under 
     paragraphs (3) and (4) of subsection (a) that are unobligated 
     by the Secretary after 3 fiscal years shall be transferred to 
     the Secretary of Homeland Security and shall be expended for 
     State recreational boating safety programs under section 
     13106(a) of title 46, United States Code.''.

     SEC. 4004. MAINTENANCE OF PROJECTS.

       Section 8 (16 U.S.C. 777g) is amended--
       (1) by striking ``in carrying out the research program of 
     the Fish and Wildlife Service in respect to fish of material 
     value for sport or recreation.'' in subsection (b)(2) and 
     inserting ``to supplement the 55.3 percent of each annual 
     appropriation to be apportioned among the States under 
     section 4(b) of this Act.''; and
       (2) by striking ``subsection (c) or (d) of section 4'' in 
     subsection (d)(3) and inserting ``paragraph (5) or (6) of 
     section 4(a)''.

     SEC. 4005. BOATING INFRASTRUCTURE.

       Section 7404(d)(1) of the Sportfishing and Boating Safety 
     Act of 1998 (16 U.S.C. 777g-1(d)(1)) is amended by striking 
     ``section 4(b)(3)(B)'' and inserting ``section 4(a)(4)''.

     SEC. 4006. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF 
                   AMOUNTS FOR EXPENSES FOR ADMINISTRATION.

       Section 9 (16 U.S.C. 777h) is amended--
       (1) by striking ``section 4(d)(1)'' in subsection (a) and 
     inserting ``section 4(a)(6)''; and
       (2) by striking ``section 4(d)(1)'' in subsection (b)(1) 
     and inserting ``section 4(a)(6)''.

     SEC. 4007. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO 
                   RICO, THE DISTRICT OF COLUMBIA, GUAM, AMERICAN 
                   SAMOA, COMMONWEALTH OF THE NORTHERN MARINA 
                   ISLANDS, AND VIRGIN ISLANDS.

       Section 12 (16 U.S.C. 777k) is amended by striking ``in 
     carrying on the research program of the Fish and Wildlife 
     Service in respect to fish of material value for sport or 
     recreation.'' and inserting ``to supplement the 55.3 percent 
     of each annual appropriation to be apportioned among the 
     States under section 4(b) of this Act.''.

     SEC. 4008. MULTISTATE CONSERVATION GRANT PROGRAM.

       Section 14 (16 U.S.C. 777m) is amended--
       (1) by striking so much of subsection (a) as precedes 
     paragraph (2) and inserting the following:
       ``(a) In General.--
       ``(1) Amount for grants.--For each of fiscal years 2004 
     through 2009, 0.9 percent of each annual appropriation made 
     in accordance with the provisions of section 3 of this Act 
     shall be distributed to the Secretary of the Interior for 
     making multistate conservation project grants in accordance 
     with this section.'';
       (2) by striking ``section 4(e)'' each place it appears in 
     subsection (a)(2)(B) and inserting ``section 4(b)''; and
       (3) by striking ``Of the balance of each annual 
     appropriation made under section 3 remaining after the 
     distribution and use under subsections (a), (b), and (c) of 
     section 4 for each fiscal year and after deducting amounts 
     used for grants under subsection (a)--'' in subsection (e) 
     and inserting ``Of amounts made available under section 
     4(a)(6) for each fiscal year--''.

  The PRESIDING OFFICER. The Senator from Oklahoma is recognized.
  Mr. INHOFE. As chairman of the EPW Committee and with the concurrence 
of the majority of the committee, I ask unanimous consent that the 
committee amendment be modified with the changes at the desk.
  The PRESIDING OFFICER. Without objection, the amendment is so 
modified.
  The modification to the reported committee substitute is as follows:

       Beginning on page 672, strike line 13 and all that follows 
     through page 678, line 5, and insert the following:

     SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

       The following sums are authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account):
       (1) Interstate maintenance program.--For the Interstate 
     maintenance program under section 119 of title 23, United 
     States Code--
       (A) $5,442,371,792 for fiscal year 2004;
       (B) $6,425,168,342 for fiscal year 2005;
       (C) $6,683,176,289 for fiscal year 2006;
       (D) $6,702,365,186 for fiscal year 2007;
       (E) $7,036,621,314 for fiscal year 2008; and
       (F) $7,139,130,081 for fiscal year 2009.
       (2) National highway system.--For the National Highway 
     System under section 103 of that title--
       (A) $6,580,322,257 for fiscal year 2004;
       (B) $7,801,990,130 for fiscal year 2005;
       (C) $8,111,641,450 for fiscal year 2006;
       (D) $8,134,931,791 for fiscal year 2007;
       (E) $8,540,631,977 for fiscal year 2008; and
       (F) $8,664,991,297 for fiscal year 2009.
       (3) Bridge program.--For the bridge program under section 
     144 of that title--
       (A) $4,650,754,076 for fiscal year 2004;
       (B) $5,507,287,150 for fiscal year 2005;
       (C) $5,713,860,644 for fiscal year 2006;
       (D) $5,730,266,418 for fiscal year 2007;
       (E) $6,016,042,650 for fiscal year 2008; and
       (F) $6,103,714,622 for fiscal year 2009.
       (4) Surface transportation program.--For the surface 
     transportation program under section 133 of that title--
       (A) $6,877,178,900 for fiscal year 2004;
       (B) $8,107,950,527 for fiscal year 2005;
       (C) $8,417,741,127 for fiscal year 2006;
       (D) $8,441,910,349 for fiscal year 2007;
       (E) $8,862,919,976 for fiscal year 2008; and
       (F) $8,992,134,975 for fiscal year 2009.
       (5) Congestion mitigation and air quality improvement 
     program.--For the congestion mitigation and air quality 
     improvement program under section 149 of that title--
       (A) $1,880,092,073 for fiscal year 2004;
       (B) $2,192,716,180 for fiscal year 2005;
       (C) $2,270,239,273 for fiscal year 2006;
       (D) $2,276,757,639 for fiscal year 2007;
       (E) $2,390,302,660 for fiscal year 2008; and
       (F) $2,425,236,569 for fiscal year 2009.
       (6) Highway safety improvement program.--For the highway 
     safety improvement program under section 148 of that title--
       (A) $1,187,426,572 for fiscal year 2004;
       (B) $1,325,828,388 for fiscal year 2005;
       (C) $1,377,448,548 for fiscal year 2006;
       (D) $1,381,403,511 for fiscal year 2007;
       (E) $1,450,295,996 for fiscal year 2008; and
       (F) $1,471,607,029 for fiscal year 2009.
       (7) Appalachian development highway system program.--For 
     the Appalachian development highway system program under 
     section 170 of that title, $590,000,000 for each of fiscal 
     years 2004 through 2009.
       (8) Recreational trails program.--For the recreational 
     trails program under section 206 of that title, $60,000,000 
     for each of fiscal years 2004 through 2009.
       (9) Federal lands highways program.--
       (A) Indian reservation roads.--For Indian reservation roads 
     under section 204 of that title--
       (i) $300,000,000 for fiscal year 2004;
       (ii) $325,000,000 for fiscal year 2005;
       (iii) $350,000,000 for fiscal year 2006;
       (iv) $375,000,000 for fiscal year 2007;
       (v) $400,000,000 for fiscal year 2008; and
       (vi) $425,000,000 for fiscal year 2009.
       (B) Recreation roads.--For recreation roads under section 
     204 of that title, $50,000,000 for each of fiscal years 2004 
     through 2009.
       (C) Park roads and parkways.--For park roads and parkways 
     under section 204 of that title--
       (i) $300,000,000 for fiscal year 2004;
       (ii) $310,000,000 for fiscal year 2005; and
       (iii) $320,000,000 for each of fiscal years 2006 through 
     2009.
       (D) Refuge roads.--For refuge roads under section 204 of 
     that title, $30,000,000 for each of fiscal years 2004 through 
     2009.
       (E) Public lands highways.--For Federal lands highways 
     under section 204 of that title, $300,000,000 for each of 
     fiscal years 2004 through 2009.
       (F) Safety.--For safety under section 204 of that title, 
     $40,000,000 for each of fiscal years 2004 through 2009.
       (10) Multistate corridor program.--For the multistate 
     corridor program under section 171 of that title--
       (A) $112,500,000 for fiscal year 2004;
       (B) $135,000,000 for fiscal year 2005;
       (C) $157,500,000 for fiscal year 2006;
       (D) $180,000,000 for fiscal year 2007;
       (E) $202,500,000 for fiscal year 2008; and
       (F) $225,000,000 for fiscal year 2009.
       (11) Border planning, operations, and technology program.--
     For the border planning, operations, and technology program 
     under section 172 of that title--
       (A) $112,500,000 for fiscal year 2004;
       (B) $135,000,000 for fiscal year 2005;
       (C) $157,500,000 for fiscal year 2006;
       (D) $180,000,000 for fiscal year 2007;
       (E) $202,500,000 for fiscal year 2008; and
       (F) $225,000,000 for fiscal year 2009.
       (12) National scenic byways program.--For the national 
     scenic byways program under section 162 of that title--
       (A) $34,000,000 for fiscal year 2004;
       (B) $35,000,000 for fiscal year 2005;
       (C) $36,000,000 for fiscal year 2006;
       (D) $37,000,000 for fiscal year 2007; and
       (E) $39,000,000 for each of fiscal years 2008 and 2009.
       (13) Infrastructure performance and maintenance program.--
     For carrying out the infrastructure performance and 
     maintenance program under section 139 of that title--
       (A) $2,500,000,000 for each of fiscal years 2004 through 
     2006;

[[Page 859]]

       (B) $1,750,000,000,000 for fiscal year 2007.
       (14) Construction of ferry boats and ferry terminal 
     facilities.--For construction of ferry boats and ferry 
     terminal facilities under section 147 of that title, 
     $38,000,000 for each of fiscal years 2004 through 2009.
       (15) Commonwealth of puerto rico highway program.--For the 
     Commonwealth of Puerto Rico highway program under section 173 
     of that title--
       (A) $140,000,000 for fiscal year 2004;
       (B) $145,000,000 for fiscal year 2005;
       (C) $149,000,000 for fiscal year 2006;
       (D) $154,000,000 for fiscal year 2007;
       (E) $160,000,000 for fiscal year 2008; and
       (F) $163,000,000 for fiscal year 2009.
       On page 678, strike lines 6 and 7 and insert the following:

     SEC. 1102. OBLIGATION CEILING.

       (a) General Limitation.--Subject to subsections (g) and 
     (h), and notwithstanding any other provision of law, the 
     obligations for Federal-aid highway and highway safety 
     construction programs shall not exceed--
       (1) $33,643,326,300 for fiscal year 2004;
       (2) $37,900,000,000 for fiscal year 2005;
       (3) $39,100,000,000 for each of fiscal years 2006 and 2007;
       (4) $39,400,000,000 for fiscal year 2008; and
       (5) $44,400,000,000 for fiscal year 2009.
       (b) Exceptions.--The limitations under subsection (a) shall 
     not apply to obligations under or for--
       (1) section 125 of title 23, United States Code;
       (2) section 147 of the Surface Transportation Assistance 
     Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
       (3) section 9 of the Federal-Aid Highway Act of 1981 
     (Public Law 97-134; 95 Stat. 1701);
       (4) subsections (b) and (j) of section 131 of the Surface 
     Transportation Assistance Act of 1982 (Public Law 97-424; 96 
     Stat. 2119);
       (5) subsections (b) and (c) of section 149 of the Surface 
     Transportation and Uniform Relocation Assistance Act of 1987 
     (Public Law 100-17; 101 Stat. 198);
       (6) sections 1103 through 1108 of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240; 
     105 Stat. 2027);
       (7) section 157 of title 23, United States Code (as in 
     effect on June 8, 1998);
       (8) section 105 of title 23, United States Code (as in 
     effect for fiscal years 1998 through 2003, but only in an 
     amount equal to $639,000,000 for each of those fiscal years);
       (9) Federal-aid highway programs for which obligation 
     authority was made available under the Transportation Equity 
     Act for the 21st Century (Public Law 105-178; 112 Stat. 107) 
     or subsequent public laws for multiple years or to remain 
     available until used, but only to the extent that the 
     obligation authority has not lapsed or been used; and
       (10) section 105 of title 23, United States Code (but, for 
     each of fiscal years 2004 through 2009, only in an amount 
     equal to $639,000,000 per fiscal year).
       (c) Distribution of Obligation Authority.--For each of 
     fiscal years 2004 through 2009, the Secretary--
       (1) shall not distribute obligation authority provided by 
     subsection (a) for the fiscal year for--
       (A) amounts authorized for administrative expenses and 
     programs by section 104(a) of title 23, United States Code;
       (B) programs funded from the administrative takedown 
     authorized by section 104(a)(1) of title 23, United States 
     Code; and
       (C) amounts authorized for the highway use tax evasion 
     program and the Bureau of Transportation Statistics;
       (2) shall not distribute an amount of obligation authority 
     provided by subsection (a) that is equal to the unobligated 
     balance of amounts made available from the Highway Trust Fund 
     (other than the Mass Transit Account) for Federal-aid highway 
     and highway safety programs for previous fiscal years the 
     funds for which are allocated by the Secretary;
       (3) shall determine the ratio that--
       (A) the obligation authority provided by subsection (a) for 
     the fiscal year, less the aggregate of amounts not 
     distributed under paragraphs (1) and (2); bears to
       (B) the total of the sums authorized to be appropriated for 
     the Federal-aid highway and highway safety construction 
     programs (other than sums authorized to be appropriated for 
     provisions of law described in paragraphs (1) through (9) of 
     subsection (b) and sums authorized to be appropriated for 
     section 105 of title 23, United States Code, equal to the 
     amount referred to in subsection (b)(10) for the fiscal 
     year), less the aggregate of the amounts not distributed 
     under paragraphs (1) and (2);
       (4) shall distribute the obligation authority provided by 
     subsection (a) less the aggregate amounts not distributed 
     under paragraphs (1) and (2), for section 14501 of title 40, 
     United States Code, so that the amount of obligation 
     authority available for that section is equal to the amount 
     determined by multiplying--
       (A) the ratio determined under paragraph (3); by
       (B) the sums authorized to be appropriated for that section 
     for the fiscal year;
       (5) shall distribute among the States the obligation 
     authority provided by subsection (a), less the aggregate 
     amounts not distributed under paragraphs (1) and (2), for 
     each of the programs that are allocated by the Secretary 
     under this Act and title 23, United States Code (other than 
     to programs to which paragraph (1) applies), by multiplying--
       (A) the ratio determined under paragraph (3); by
       (B) the amounts authorized to be appropriated for each such 
     program for the fiscal year; and
       (6) shall distribute the obligation authority provided by 
     subsection (a), less the aggregate amounts not distributed 
     under paragraphs (1) and (2) and the amounts distributed 
     under paragraphs (4) and (5), for Federal-aid highway and 
     highway safety construction programs (other than the amounts 
     apportioned for the equity bonus program, but only to the 
     extent that the amounts apportioned for the equity bonus 
     program for the fiscal year are greater than $639,000,000, 
     and the Appalachian development highway system program) that 
     are apportioned by the Secretary under this Act and title 23, 
     United States Code, in the ratio that--
       (A) amounts authorized to be appropriated for the programs 
     that are apportioned to each State for the fiscal year; bear 
     to
       (B) the total of the amounts authorized to be appropriated 
     for the programs that are apportioned to all States for the 
     fiscal year.
       (d) Redistribution of Unused Obligation Authority.--
     Notwithstanding subsection (c), the Secretary shall, after 
     August 1 of each of fiscal years 2004 through 2009--
       (1) revise a distribution of the obligation authority made 
     available under subsection (c) if an amount distributed 
     cannot be obligated during that fiscal year; and
       (2) redistribute sufficient amounts to those States able to 
     obligate amounts in addition to those previously distributed 
     during that fiscal year, giving priority to those States 
     having large unobligated balances of funds apportioned under 
     sections 104 and 144 of title 23, United States Code.
       (e) Applicability of Obligation Limitations to 
     Transportation Research Programs.--
       (1) In general.--Except as provided in paragraph (2), 
     obligation limitations imposed by subsection (a) shall apply 
     to contract authority for transportation research programs 
     carried out under--
       (A) chapter 5 of title 23, United States Code; and
       (B) title II of this Act.
       (2) Exception.--Obligation authority made available under 
     paragraph (1) shall--
       (A) remain available for a period of 3 fiscal years; and
       (B) be in addition to the amount of any limitation imposed 
     on obligations for Federal-aid highway and highway safety 
     construction programs for future fiscal years.
       (f) Redistribution of Certain Authorized Funds.--
       (1) In general.--Not later than 30 days after the date of 
     distribution of obligation authority under subsection (c) for 
     each of fiscal years 2004 through 2009, the Secretary shall 
     distribute to the States any funds that--
       (A) are authorized to be appropriated for the fiscal year 
     for Federal-aid highway programs; and
       (B) the Secretary determines will not be allocated to the 
     States, and will not be available for obligation, in the 
     fiscal year due to the imposition of any obligation 
     limitation for the fiscal year.
       (2) Ratio.--Funds shall be distributed under paragraph (1) 
     in the same ratio as the distribution of obligation authority 
     under subsection (c)(6).
       (3) Availability.--Funds distributed under paragraph (1) 
     shall be available for any purpose described in section 
     133(b) of title 23, United States Code.
       (g) Special Rule.--Obligation authority distributed for a 
     fiscal year under subsection (c)(4) for the provision 
     specified in subsection (c)(4) shall--
       (1) remain available until used for obligation of funds for 
     that provision; and
       (2) be in addition to the amount of any limitation imposed 
     on obligations for Federal-aid highway and highway safety 
     construction programs for future fiscal years.
       (h) Adjustment in Obligation Limit.--
       (1) In general.--A limitation on obligations imposed by 
     subsection (a) for a fiscal year shall be adjusted by an 
     amount equal to the amount determined in accordance with 
     section 251(b)(1)(B) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901(b)(A)(B)) for the 
     fiscal year.
       (2) Distribution.--An adjustment under paragraph (1) shall 
     be distributed in accordance with this section.
       (i) Limitations on Obligations for Administrative 
     Expenses.--Notwithstanding any other provision of law, the 
     total amount of all obligations under section 104(a) of title 
     23, United States Code, shall not exceed--
       (1) $450,000,000 for fiscal year 2004;
       (2) $465,000,000 for fiscal year 2005;
       (3) $480,000,000 for fiscal year 2006;
       (4) $495,000,000 for fiscal year 2007;
       (5) $510,000,000 for fiscal year 2008; and
       (6) $525,000,000 for fiscal year 2009.
       Beginning on page 681, strike line 7 and all that follows 
     through page 683, line 4, and insert the following:

     SEC. 1104. EQUITY BONUS PROGRAM.

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

[[Page 860]]



     ``Sec. 105. Equity bonus program

       ``(a) Program.--
       ``(1) In general.--Subject to subsections (c) and (d), for 
     each of fiscal years 2004 through 2009, the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a percentage of the total apportionments 
     for the fiscal year for the programs specified in paragraph 
     (2) that is less than the percentage calculated under 
     subsection (b).
       ``(2) Specific programs.--The programs referred to in 
     subsection (a) are--
       ``(A) the Interstate maintenance program under section 119;
       ``(B) the national highway system program under section 
     103;
       ``(C) the bridge program under section 144;
       ``(D) the surface transportation program under section 133;
       ``(E) the highway safety improvement program under section 
     148;
       ``(F) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(G) metropolitan planning programs under section 104(f) 
     (other than planning programs funded by amounts provided 
     under the equity bonus program under this section);
       ``(H) the infrastructure performance and maintenance 
     program under section 139;
       ``(I) the equity bonus program under this section;
       ``(J) the Appalachian development highway system program 
     under subtitle IV of title 40;
       ``(K) the recreational trails program under section 206;
       ``(L) the safe routes to schools program under section 150; 
     and
       ``(M) the rail-highway grade crossing program under section 
     130.
       ``(b) State Percentage.--
       ``(1) In general.--The percentage referred to in subsection 
     (a) for each State shall be--
       ``(A) 95 percent of the quotient obtained by dividing--
       ``(i) the estimated tax payments attributable to highway 
     users in the State paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the most recent fiscal year 
     for which data are available; by
       ``(ii) the estimated tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account) for the fiscal year; or
       ``(B) for a State with a total population density of less 
     than 20 persons per square mile, as reported in the decennial 
     census conducted by the Federal Government in 2000, a total 
     population of less than 1,000,000, as reported in that 
     decennial census, or a median household income of less than 
     $35,000, as reported in that decennial census, the greater 
     of--
       ``(i) the percentage under paragraph (1); or
       ``(ii) the average percentage of the State's share of total 
     apportionments for the period of fiscal years 1998 through 
     2003 for the programs specified in paragraph (2).
       ``(2) Specific programs.--The programs referred to in 
     paragraph (1)(B)(ii) are (as in effect on the day before the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003)--
       ``(A) the Interstate maintenance program under section 119;
       ``(B) the national highway system program under section 
     103;
       ``(C) the bridge program under section 144;
       ``(D) the surface transportation program under section 133;
       ``(E) the recreational trails program under section 206;
       ``(F) the high priority projects program under section 117;
       ``(G) the minimum guarantee provided under this section;
       ``(H) revenue aligned budget authority amounts provided 
     under section 110;
       ``(I) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(J) the Appalachian development highway system program 
     under subtitle IV of title 40; and
       ``(K) metropolitan planning programs under section 104(f).
       ``(c) Special Rules.--
       ``(1) Minimum combined allocation.--For each fiscal year, 
     before making the allocations under subsection (a)(1), the 
     Secretary shall allocate among the States amounts sufficient 
     to ensure that no State receives a combined total of amounts 
     allocated under subsection (a)(1), apportionments for the 
     programs specified in subsection (a)(2), and amounts 
     allocated under this subsection, that is less than 110 
     percent of the average for fiscal years 1998 through 2003 of 
     the annual apportionments for the State for all programs 
     specified in subsection (b)(2).
       ``(2) No negative adjustment.--Notwithstanding subsection 
     (d), no negative adjustment shall be made under subsection 
     (a)(1) to the apportionment of any State.
       ``(3) Minimum share of tax payments.--Notwithstanding 
     subsection (d), for each fiscal year, the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a percentage of apportionments for the 
     fiscal year for the programs specified in subsection (a)(2) 
     that is less than 90.5 percent of the percentage share of the 
     State of estimated tax payments attributable to highway users 
     in the State paid into the Highway Trust Fund (other than the 
     Mass Transit Account) in the most recent fiscal year for 
     which data are available.
       ``(d) Limitation on Adjustments.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3) of subsection (c), no State shall receive, for any fiscal 
     year, additional amounts under subsection (a)(1) if--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceed
       ``(B) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2).
       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B) are--
       ``(A) fiscal year 2004, 120 percent;
       ``(B) fiscal year 2005, 130 percent;
       ``(C) fiscal year 2006, 134 percent;
       ``(D) fiscal year 2007, 137 percent;
       ``(E) fiscal year 2008, 145 percent; and
       ``(F) fiscal year 2009, 250 percent.
       ``(e) Programmatic Distribution of Funds.--The Secretary 
     shall apportion the amounts made available under this section 
     so that the amount apportioned to each State under this 
     section for each program referred to in subparagraphs (A) 
     through (G) of subsection (a)(2) is equal to the amount 
     determined by multiplying the amount to be apportioned under 
     this section by the proportion that--
       ``(1) the amount of funds apportioned to each State for 
     each program referred to in subparagraphs (A) through (G) of 
     subsection (a)(2) for a fiscal year; bears to
       ``(2) the total amount of funds apportioned to each State 
     for all such programs for the fiscal year.
       ``(f) Metro Planning Set Aside.--Notwithstanding section 
     104(f), no set aside provided for under that section shall 
     apply to funds allocated under this section.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account) such sums as are 
     necessary to carry out this section for each of fiscal years 
     2004 through 2009.''
       (b) Conforming Amendments.--
       (1) The analysis for subchapter I of chapter 1 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 105 and inserting the following:
``105. Equity bonus program.''
       (2) Section 104(a)(1) of title 23, United States Code, is 
     amended by striking ``minimum guarantee'' and inserting 
     ``equity bonus''.
       On page 683, strike lines 8 through 16 and insert the 
     following:
       (1) in subsection (a)--
       (A) in paragraphs (1) and (2), by striking ``2000'' and 
     inserting ``2006'';
       (B) in paragraph (1), by inserting ``(as in effect on 
     September 30, 2002)'' after ``(2 U.S.C. 
     901(b)(2)(B)(ii)(I)(cc))''; and
       (C) in paragraph (2)--
       (i) by striking ``If the amount'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     if the amount'';
       (ii) by inserting ``(as in effect on September 30, 2002)'' 
     after ``(2 U.S.C. 901(b)(1)(B)(ii)(I)(cc)'';
       (iii) by striking ``the succeeding'' and inserting 
     ``that'';
       (iv) by striking ``and the motor carrier safety grant 
     program''; and
       (v) by adding at the end the following:
       ``(B) Limitation.--No reduction under subparagraph (A) 
     shall be made for a fiscal year if, as of October 1 of the 
     fiscal year, the cash balance in the Highway Trust Fund 
     (other than the Mass Transit Account) exceeds 
     $6,000,000,000.''.
       On page 684, strike lines 19 and 20 and insert the 
     following:
       ``(b) Eligible Projects.--A State may obligate funds
       On page 685, strike lines 6 and 7 and insert the following:
       ``(1) preserve, maintain, or otherwise extend, in a cost-
     effective manner, the useful life of
       On page 685, strike lines 9 and 10 and insert the 
     following:
       ``(2) provide operational improvements (including traffic 
     management and intelligent
       On page 685, strike lines 14 through 19.
       Beginning on page 703, strike line 20 and all that follows 
     through page 704, line 15, and insert the following:
     section shall be 80 percent.''.
       On page 923, strike lines 7 through 10.
       On page 923, line 11, strike ``1808'' and insert ``1807''.
       On page 929, line 14, strike ``1809'' and insert ``1808''.
       On page 931, line 5, ``1810'' and insert ``1809''.
       On page 931, line 7, strike ``1809(a)'' and insert 
     ``1808(a)''.
       On page 933, line 22, strike ``1810(b)'' and insert 
     ``1809(b)''.
       On page 934, line 1, strike ``1811'' and insert ``1810''.
       On page 934, line 4, strike ``1810(a)'' and insert 
     ``1809(a)''.
       On page 942, line 3, strike ``1810(b)'' and insert 
     ``1809(b)''.
       On page 942, line 5, strike ``1812'' and insert ``1811''.
       On page 942, line 7, strike ``1811(a)'' and insert 
     ``1810(a)''.

[[Page 861]]

       On page 944, line 5, strike ``1811(b)'' and insert 
     ``1810(b)''.
       On page 944, line 7, strike ``1813'' and insert ``1812''.
       On page 944, line 10, strike ``1812(a)'' and insert 
     ``1811(a)''.
       On page 946, line 23, strike ``1812(b)'' and insert 
     ``1811(b)''.
       On page 947, line 1, strike ``1814'' and insert ``1813''.
       On page 947, line 4, strike ``1813(a)'' and insert 
     ``1812(a)''.
       On page 953, line 10, strike ``1813(b)'' and insert 
     ``1812(b)''.
       On page 953, line 12, strike ``1815'' and insert ``1814''.
       On page 954, line 22, strike ``1815'' and insert ``1814''.
       On page 955, line 7, strike ``1817'' and insert ``1816''.
       On page 962, line 1, strike ``1818'' and insert ``1817''.
       On page 963, line 23, strike ``1819'' and insert ``1818''.
       On page 964, line 6, strike ``1820'' and insert ``1819''.
  Mr. INHOFE. Mr. President, with the agreement of both sides, we will 
recognize the Senator from Florida, Mr. Nelson, for 10 minutes on a 
subject other than the highway bill.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from Florida is recognized.
  (The remarks of Mr. Nelson of Florida are printed in today's Record 
under ``Morning Business.'')
  The PRESIDING OFFICER. The Senator from Oklahoma.
  Mr. INHOFE. Mr. President, we have been yielding to Members on other 
subjects. I was glad to do so, but we were supposed to be on the 
highway bill for discussion about an hour ago. It is my wish not to 
recognize anyone, so long as we have speakers on the highway bill. I 
understand I get primary recognition, and I can't do this as managed 
time, but it is my desire to recognize the ranking member of the 
Environment and Public Works Committee for whatever time he should 
take, and immediately following that, the Senator from Ohio, Mr. 
Voinovich.
  Before Senator Jeffords talks, let me say, again, as I did several 
times yesterday, how much I appreciate his cooperation in working 
together on this very difficult bill and coming to the point where we 
are today.
  Mr. JEFFORDS. I thank the Senator. I echo those words with respect to 
the chairman's cooperation as well. It has been a pleasure to work with 
him and his staff. I am glad we are where we are now.
  I wish to speak briefly on yesterday's incident that apparently 
involved ricin. First, I thank Majority Leader Frist for his calm and 
professional approach to this matter. I also thank the Capitol Police, 
the Attending Physician, and everyone who assisted in responding to 
this incident.
  As many of my colleagues know, my personal office is adjacent to 
Senator Frist's office on the first floor, and my committee staff is 
located across the hall from Senator Frist, so we were hit twice as 
hard on this episode.
  Nearly a dozen of my staff members were quarantined last night and 
later decontaminated. They did not get home until after 2 in the 
morning. I would like to say a special thank you to them. Thankfully, 
everyone is feeling fine, and they don't appear to have any ill 
effects.
  We should not have to go through this type of episode as we go about 
our business every day, but, unfortunately, these are the times we are 
living in.
  I am hopeful we will get to the bottom of who is responsible, close 
this chapter, and return to our normal routines as soon as possible. 
Incidentally--and I may be getting a little paranoid--we are the only 
office to have also been involved in the other episode because we moved 
from Hart to Dirksen this year. I want to warn everyone, watch where I 
am. You may save yourself some problems.
  Some 2\1/2\ years ago when I assumed the leadership of the Committee 
on Environment and Public Works, I set my sights on reauthorization of 
the Nation's Surface Transportation Program. I recognized this to be 
the most challenging task confronting the committee.
  I have spent these last 2 years working with my colleagues, meeting 
with Americans, and studying the Nation's transportation needs. I have 
traveled the country visiting local communities and seeing firsthand 
our many national transportation challenges.
  My observations on the road were reinforced by our committee's 
hearing process. The committee and our Transportation Subcommittee held 
11 public hearings and sponsored three roundtable discussions to 
prepare for renewal of the Nation's Surface Transportation Program. We 
heard from over 100 witnesses from 30 States, representing over 60 
organizations. The process generated a hearing record of over 1,500 
pages.
  What I heard is our current national program is working well; that we 
should refine it and not replace it. Our national transportation policy 
must serve the public good. In my view, the outcomes we seek are a 
strong economy, safe and healthy communities, and a clean environment. 
A balanced transportation system is necessary for us to attain these 
goals.
  The success of our Surface Transportation Program will rest on four 
fundamental pillars.
  Asset management is the first pillar. We must maintain and preserve 
our infrastructure investment. We cannot allow highways and bridges to 
deteriorate.
  Access and mobility is the second pillar. Most Americans now live in 
metro areas, and most metro areas are congested and getting worse. We 
need to focus on these problems.
  The third pillar is freight and trade. The value of trade and tonnage 
of goods moved in this country is enormous and growing. We need new 
facilities to accommodate this growth.
  The fourth pillar is safety. We must continue the progress we have 
made over the last 10 years reducing the rate of highway fatalities and 
work now to reduce the actual number of lives lost on our roadways.
  In partnership with our chairman, Senator Inhofe, and with the 
leaders of our subcommittee, Senators Bond and Reid, we have helped 
construct a bill, SAFETEA, on these pillars. SAFETEA retains the 
strengths of our current national transportation program while 
enhancing its effectiveness to deal with the challenges facing our 
States and communities.
  The bill meets highway system needs for strong growth in a manner 
that increases assistance to every State and every region. It is funded 
at a level of $255 billion that will enable the States to improve road 
and bridge conditions.
  The bill will generate millions of well-paying jobs since every 
billion dollars spent on the highway program can generate up to 47,500 
jobs. These jobs come at a time of great economic need in our 
communities.
  A well-funded safety title is also included. It features a new 
program--Safe Routes to Schools--to protect children as they walk or 
ride their bikes to school.
  Significant growth in congestion mitigation and air quality funding 
will help States improve air quality, reduce pollution, and address 
congestion. The bill makes it easier for States to mitigate project 
effects on habitat and wetlands, and retains and expands popular 
programs such as enhancements, recreational trails, and scenic byways. 
The increased intermodal flexibility set forth in the bill will allow 
States, if they wish, to improve freight handling and movement. But 
fundamentally, this massive transportation bill is about people.
  It is about making it easier to commute to work; making roads safer 
for our families; preserving scenic beauty for future generations; 
helping our children get to school safely; moving freight efficiently 
and cheaply; and making America better.
  Working with my colleagues, I have done my level best to write a bill 
that is fair to all States and regions of our country. I am committed 
to maintaining the legacy I inherited from my dear friends and former 
colleagues, Pat Moynihan and John Chafee. I look forward to completing 
this job, working with Chairman Inhofe, with the leaders of the other 
authorizing committees, and with all my fellow Members to produce 
legislation that will build a strong America.
  I thank the Chair.
  The PRESIDING OFFICER. The Senator from Ohio.

[[Page 862]]


  Mr. VOINOVICH. Mr. President, I rise to support S. 1072, the Safe, 
Accountable, Flexible, and Efficient Transportation Equity Act of 2003.
  First, I congratulate Senators Inhofe, Bond, Jeffords, and Reid, and 
their staffs on the impressive work they have done to put together a 
bipartisan bill. The fact this is a bipartisan product means we can 
actually get something done. It is a process of which I am glad to be a 
part as a member of the Environment and Public Works Committee.
  Lately, all I have heard in the media and even from some of my 
colleagues is this is going to be a very difficult year to get anything 
done. I hope this bill and bipartisan spirit is an indication of the 
progress we can make this year for the American people. To borrow from 
one of my mottos as Governor: Together we can do it. And the other 
motto is the Ohio motto: With God, all things are possible.
  This is one of the most important pieces of legislation Congress will 
consider this year. Although recent economic reports indicate positive 
job growth in the Nation as a whole, manufacturing jobs, including in 
Ohio, continue to experience slow growth and prolonged unemployment.
  In recent months, I have met with workers, small business owners and 
manufacturers throughout Ohio. They all have the same thing to say: 
Good, high-paying manufacturing jobs are leaving Ohio. Many of these 
displaced workers would be productively employed on construction 
projects.
  We have an opportunity with the highway bill not only to improve and 
repair our crumbling highways and bridges but to create and to let 
folks know that we know they are hurting. I will never forget when I 
was mayor of the city of Cleveland back in 1983. President Reagan and 
Congress realized the pain the people in this country were experiencing 
and Congress passed the emergency jobs bill, including an increase in 
the gas tax which stimulated tremendous highway construction jobs 
during 1983 and into 1984.
  According to the American Road and Transportation Builders 
Association, ARTBA, employment in the transportation construction 
industry was down in July of 2003, during the peak of the construction 
season, compared to July 2002. Specifically, there were 12,100 fewer 
workers on project sites over the last year, a decrease of 3.7 percent.
  In Ohio, according to the Bureau of Labor Statistics, heavy 
construction jobs were up slightly from last year. However, there were 
still on average 3,500 fewer jobs in 2003 than in 2000 when they were 
at their peak. Investing in our Nation's transportation infrastructure 
through a 6-year reauthorization bill will create hundreds of thousands 
of jobs and move our sluggish economy down the road to recovery.
  The transportation construction industry generates more than $200 
billion in economic activity and helps sustain 2.5 million jobs in the 
United States each year. According to the U.S. Department of 
Transportation, every $1 billion invested in highway construction 
creates 47,500 jobs and generates more than $2 billion in economic 
activity. It is also estimated that every dollar invested in the 
Nation's highway system generates $5.70 in economic benefits, including 
reduced delays, improved safety and reduced vehicle operating costs. 
This is a 6-to-1 return on investment. This has to be one of the best 
investments that the Federal Government can make.
  We also need to ensure that we are investing adequate resources into 
our transportation infrastructure. According to the Federal Highway 
Administration's 2002 Conditions and Performance Report, the average 
annual investment level needed to make improvements to highways and 
bridges is projected to be $106.9 billion through 2020. This amount is 
65 percent higher than the $64 billion of total capital investments 
spent by all levels of government in 2000. There is just no question 
that the need is there.
  The average annual investment level necessary to maintain the current 
condition and performance of highways and bridges is projected to be 
$75.9 billion to 2020. This amount is 17.5 percent higher than capital 
spending in 2000. Nationwide, 162,000 bridges are structurally 
deficient or functionally obsolete, and 160,000 miles of highway 
pavement are in poor or mediocre condition. Americans pay approximately 
$49 billion a year in extra vehicle repairs and operating costs due to 
road conditions. That is $255 a driver in this country. In addition, 
the average urban rush hour driver spends almost 62 additional hours a 
year stuck in traffic. Congestion is responsible for 5.7 billion 
gallons of wasted gasoline each year. Wasted fuel and low productivity 
due to traffic congestion costs the U.S. economy nearly $70 billion 
annually. In other words, this legislation will help reduce our 
reliance on oil, improve our environment, and relieve the stress and 
road rage that we see so often throughout our country.
  Nearly 43,000 people were killed on America's roads in 2002. Poor 
road conditions were a factor in one-third of those fatalities. The 
Federal Government predicts highway fatalities will grow to nearly 
52,000 by 2009, absent any new Federal investment in highway safety. 
Studies report that every $1 billion invested in road improvements 
since 1950 has helped prevent 1,400 premature deaths and nearly 50,000 
injuries, as well as help save over $2 billion in health care, 
insurance, lost wages, and productivity costs.
  If we continue to ignore the upkeep and allow the deterioration of 
our infrastructure, we risk disruptions in commerce and reduced 
protection for public safety, health, and the environment. In my view, 
it is the responsibility of Congress to ensure that funding levels are 
adequate and efficiently allocated to the Nation's priority needs.
  In 1998, Congress recognized the importance of the Nation's 
transportation system through the enactment of TEA-21, a 6-year bill 
that increased Federal investment in highways and transit by nearly 40 
percent to $218 billion. Under TEA-21, my State received a 23 percent 
increase in transportation funding. Ohio's share of highway funding 
also increased under TEA-21 to 90.5 percent of its share of 
contributions to the trust fund. When I took office as Governor in 
1991, Ohio's share was less than 80 percent. ISTEA took us to 85 and 
TEA-21 to 90.5.
  As chairman of the National Governors Association, I was involved in 
negotiating TEA-21 and lobbied Congress and worked with Bud Shuster to 
ensure that all highway trust fund revenues were spent on 
transportation. TEA-21 dedicated nearly all highway gas taxes to 
transportation funding and guarantees that States will receive at least 
90.5 percent of their share of contributions to the fund.
  I also fought to even out highway funding fluctuations and assure a 
predictable flow of funding to eliminate the peaks and valleys that we 
experienced on the State and local level under ISTEA. TEA-21 achieved 
this role with record guaranteed levels of funding, and I am glad to be 
in the Senate at this time to work on reauthorizing this important 
legislation.
  The administration's 6-year surface transportation reauthorization 
proposal, the Safe, Flexible, and Efficient Transportation Equity Act, 
would provide $247 billion, including $201 billion for highway and 
safety programs and $46 billion to transit programs. On November 12, 
2003, the Senate Environment and Public Works Committee approved $255 
billion in contract authority for highways over the next 6 years, or an 
average of $42.5 billion annually.
  Again, one of my top priorities for reauthorization is to increase 
the minimum rate of return for donor States from 90.5 percent to at 
least 95 percent. In May 2003, Senator Carl Levin and I, along with 
House Majority Leader Tom DeLay and Congressman Baron Hill, introduced 
legislation, the Highway Funding Equity Act of 2003, to increase donor 
States' minimum rate of return to 95 percent.
  Currently, there are 144 sponsors of this bill in the House and 22 
cosponsors in the Senate. It has been a pleasure to lead this effort on 
behalf of the SHARE, States' Highway Alliance for Real Equity, 
coalition in the Senate. SHARE believes all States have highway 
infrastructure needs that surpass

[[Page 863]]

available resources. For this reason, each donor State seeks to get 
back as much of the taxes paid by its motorists as possible. SHARE's 
objectives are to increase the size of the guarantee to 95 percent and 
to apply the scope of the guarantee to all dollars being distributed to 
the States.
  I commend Chairman Inhofe, Senator Bond, Senator Jeffords, and others 
not only for their hard work in writing this bill but also for 
increasing the guaranteed share of all donor States to 95 percent by 
2009, while balancing limited resources and the needs of the States. It 
is a very difficult job, but if one really looks at what has been done, 
it was a Solomon-like job and they should be congratulated for it. I 
hope other Members of the Senate are respectful of the fact that it was 
an intellectually honest effort on our part to try to remedy a problem 
that we have had for too long around this country.
  Specifically, my State is going to receive $2.2 billion, which is a 
38 percent increase over the 6-year period, compared to the last 6 
years under TEA-21. We lost billions of dollars compared to other 
States, because we are a donor State--over the last number of years. 
The total amount of funding Ohio will receive over the next 6 years is 
more than $8 billion. Much of this additional funding is due to Ohio's 
increased share of the highway trust fund dollars.
  Another of my priorities for increasing highway funding and improving 
equity is to no longer penalize States that consume ethanol-blended 
fuel to help reduce our national dependence on imported oil. Last year, 
I cosponsored language written by Senator Grassley and reported out of 
the Finance Committee that would transfer 2.5 cents of the Federal tax 
on ethanol-blended fuel from the general fund of the Treasury to the 
highway account of the highway trust fund and replace the 5.2-cents-
per-gallon reduced tax rate for ethanol-blended fuel with a tax credit. 
This was also in the Senate-passed energy bill.
  As a result, the same Federal tax will be collected and deposited 
into the highway trust fund, regardless of whether a gallon of fuel 
contains ethanol. The Ohio Department of Transportation estimates that 
enactment of this legislation will restore up to $170 million annually 
to the State of Ohio.
  I congratulate the Finance Committee for coming up with the revenue 
offsets to reach the outlays of $231 billion to pay for highways over 
the next 6 years. I urge the Senate to support the committee's 
recommendations.
  This morning I congratulated Senator Grassley, the chairman of the 
Finance Committee, for getting in there and finding the dollars and the 
offsets so we can talk to our colleagues about supporting this 
legislation as something fiscally responsible.
  When gasohol contributions are included, Ohio's highway funding over 
the next 6 years will increase more than $3.1 billion, 54.2 percent 
over TEA-21 for a total of $8.9 billion. The surface transportation 
reauthorization bill is extremely important to Ohio, which has one of 
the largest surface transportation networks in the country. Ohio has 
the 10th largest highway network, the 5th largest volume of traffic, 
the 4th largest interstate highway network, and the 2nd largest 
inventory of bridges in the country.
  There are also 62 public transit systems serving 59 of Ohio's 88 
counties. In 2002, these systems made approximately 138.6 million 
trips. Ohio has the Nation's 4th largest rural transportation program, 
the 5th largest bus fleet, the 9th most transit vehicle miles traveled, 
and the 10th overall highest ridership in the country.
  This bill, if enacted, will meet the essential needs of the entire 
surface transportation system of my State. It will also create 
thousands of jobs and provide a significant boost to Ohio's economy. I 
am very proud that Ohio approved a motor fuel tax increase in 2003 that 
will ensure an annual $250 million new construction program for the 
next 10 years, while maintaining bridge and highway conditions. With 
additional Federal funds, the Ohio Department of Transportation has set 
a goal of having a $5 billion, 10-year Ohio construction program 
entitled Jobs and Progress Plan, dedicated to addressing Ohio's most 
pressing congestion, safety, and rural access needs.
  The plan is predicated on Congress enacting legislation to correct 
the ethanol penalty which reduces Ohio's transportation revenue and 
increases donor States' minimum rate of return to 95 percent, and 
provides an increased level of investment in the Nation's highways and 
bridges. This highway bill achieves all of those goals. It is a bill 
that is very important to my State and its economy.
  As a result, a half billion dollar a year new construction program in 
our State would employ approximately 4,000 construction workers 
directly and create another almost 10,000 indirect highway jobs.
  Ohio's Jobs and Progress Plan would help finance several major 
projects throughout the State, including a $350 million project to 
rebuild I-75 in Dayton, a $400 million project to begin rebuilding the 
Central Viaduct, or as we call it in Cleveland, the Dead Man's Curve, 
and a $600 million project to improve I-70 and I-71 in Columbus. The 
plan also calls for $60 million annual investment to address high-crash 
locations, as well as funding to address freight corridors such as U.S. 
24 and U.S. 30 in northwest Ohio. Too many people have died on these 
highways.
  This is a jobs bill. In addition, the Ohio Department of 
Transportation has $164.3 million worth of projects that are ready to 
go. These are projects ready to go if the money were there. The 128 
projects on the shelf include major reconstruction, resurfacing, bridge 
replacement and repair, traffic signals, signs, culvert construction, 
guardrail rebuilding, pavement marking, and preventive maintenance. If 
this funding were made available, approximately 1,300 direct and some 
almost 3,500 indirect jobs would be created in the State.
  Finally, I have several comments about the environmental, planning, 
and project delivery provisions of the bill. As chairman of the Clean 
Air Subcommittee and the past chairman of the Transportation 
Subcommittee, I understand full well the importance and significance of 
the overlap between highway planning and air quality.
  When I began my term as Governor, 28 Ohio counties were in 
nonattainment for ozone. I spent considerable effort to get them into 
attainment. In addition to working with utilities to reduce their 
emissions, I implemented an automobile emissions testing program called 
E-check to help bring Ohio's counties into compliance. At that time, 
Ohio was one of only a few States to have an enhanced auto emissions 
test in its urban areas.
  That all came about because we were trying to comply with the Clean 
Air Act. This program was a success. According to the 1997 EPA report, 
volatile organic compounds and nitrogen oxides, which are a major 
component in the formation of ozone and are emitted by cars and trucks, 
have been dramatically reduced from 1970 to 1996. Emissions of VOCs 
were reduced by 49 percent, NOX by 26 percent. Additionally, 
air toxins in Ohio were reduced from approximately 381 million pounds 
in 1987 to 144 million pounds in 1996.
  Due to these reductions, all 88 counties have met the national air 
quality standards. But this has not been an easy battle. The E-Check 
program has been criticized because it required vehicle owners in 
smoggy areas to pay for annual emissions testing and to make the 
necessary repairs. Due to its unpopularity, Ohio's General Assembly 
passed a bill revoking the program. However, I stood up for the program 
and vetoed the bill because I believed it was an important and 
necessary step to cleaning up Ohio's air. That veto, by the way, was 
not overridden.
  I believe hard choices such as these are important. The conformity 
program has helped encourage cleaner air, and transportation planning 
has benefited from coordination with the air quality planners. As 
requested by Federal, State, and local officials, this bill makes 
important improvements in the conformity process by synchronizing 
planning and conformity timelines and requirements. So I congratulate 
the chief sponsors again.
  I am also pleased that this bill modifies the Congestion Mitigation 
and Air

[[Page 864]]

Quality Improvement Program, called CMAQ, to include the nonattainment 
areas for the fine particulate matter standard--PM2.5--and the 8-hour 
ozone standard. EPA will make designations for both these standards 
this year, and these areas will need all the help they can get to 
attain the new standards.
  While these are two areas in which I believe we have made progress, I 
am a little disappointed with the metropolitan and statewide planning 
and transportation project delivery process in this bill. I don't think 
these provisions will do much to expedite the project delivery process 
and, quite frankly, actually create a more burdensome process than 
under current law.
  As a former Governor, I was frustrated at how long it took to do a 
highway project from beginning to end. As Senator, I have wanted to do 
something meaningful on this issue, since I was chairman of the 
Subcommittee on Transportation and Infrastructure and, in fact, we held 
a number of oversight hearings on the implementation of the 
streamlining provisions included in TEA-21. One of my top priorities 
for this reauthorization is to enact efficient transportation project 
delivery that will actually expedite the project delivery process.
  Regulations implementing these provisions were disappointing and 
later scrapped. I regret that we have wasted an opportunity to realize 
the benefits of the expedited process that was envisioned 6 years ago, 
the 1309 process. In other words, we talked 6 years ago, in the TEA-21, 
that we were going to streamline the process and put a provision in the 
law that said we should do it. After 6 years, fundamentally nothing has 
happened--after 6 years.
  The transportation project delivery process provisions in this bill 
that we are going to consider, as I say, are disappointing because I 
think they are going to do little to expedite the project delivery 
process, given that the bill requires State and local planning agencies 
to meet process burdens that are even more burdensome than in the 
current law.
  Do you hear me? They are more burdensome than in the current law, 
which we were trying to change and improve during the last 6 years.
  I hope we can fix these provisions on the floor with the support of 
AASHTO, ARTBA, AGC, and the American Highway Users, and many State and 
local government organizations.
  Furthermore, one more thing I am concerned about is one of the most 
significant elements of environmental streamlining missing from this 
bill, and that is to reform the process known as section 4(f). This 
process causes more delay in my State than any other planning or 
environment review requirement. I will bring that situation to the 
attention of my colleagues during debate on this bill.
  This is a good bill. I urge my colleagues to support S. 1072. The 
current surface transportation authorization expires at the end of this 
month. People are waiting. They want it passed. They want to see the 
jobs. The time to act is now.
  Nationwide, this bill would create 2.8 million new jobs, including 
106,000 new jobs in Ohio. This is important jobs-creation legislation 
that will put hard-working Americans back to work and jump-start our 
sluggish economy, especially States like Ohio, where our economy is 
still struggling.
  Mr. INHOFE. Mr. President, I see the minority leader. I certainly 
defer to the minority leader.
  Mr. DASCHLE. I thank the distinguished Senator from Oklahoma. I am 
happy to accommodate the order at whatever time someone may come to the 
floor. I have a few comments to make as we begin this debate.
  Let me express our gratitude to the two managers of the bill and 
other Members of the Senate who have put so much effort into this 
legislation. We have come a long way. I am grateful to them for 
producing a bill that merits strong bipartisan support.
  The debate on this bill is long overdue. We have already lost 90,000 
jobs by our inability to pass the bill last October. At a time when we 
have lost 3 million jobs over the last several years, we cannot afford 
to keep losing jobs. We had the first meager job increase just last 
month with 1,000 jobs across the entire Nation. The importance we can 
put on job creation with this legislation should not be underestimated.
  Now that the Senate has begun the debate on the bill, we need to 
ensure it goes forward in a bipartisan fashion--the way this 
institution has worked on legislation similar to this over its long 
history.
  If we ultimately pass a transportation bill into law, it is expected 
to create 830,000 jobs over the next 6 years. These would be good jobs 
for Americans, jobs in engineering, in the environment, in 
construction--good jobs in all States.
  In addition to jobs, there is another critical reason to be moving 
forward on this bill. Yesterday, there was a lot of talk about the $520 
billion Federal budget deficit, a very troubling figure. But there is 
another deficit we have not talked much about yet and that is in our 
Nation's infrastructure. Our Nation's transportation infrastructure--
our roads, highways, transit, ports, and rail lines--is a thread that 
holds our Nation together to make it possible to have a free and open 
society, which is suffering a remarkable deficit, one that can be 
addressed with the passage of this legislation.
  Our transportation infrastructure impacts what we do every single 
day, and most of the time it is simply taken for granted and 
unrecognized.
  Over 30 percent of our roads and highways are now considered in poor 
or in substandard condition. Over 30,000 of our Nation's bridges are 
functionally obsolete or structurally deficient. The transportation 
bill reported out of the Environment and Public Works Committee will 
address this infrastructure deficit.
  Likewise, we need to ensure this transportation bill is intermodal 
and includes provisions to improve the conditions of rails and ports. 
Rail lines in the United States alone require $7 billion each and every 
year just to maintain them. Our Nation's transit programs are a 
critical and interconnected portion of our transportation 
infrastructure.
  I am particularly pleased Finance Chairman Grassley and Ranking 
Member Baucus included as a part of the financing provisions reported 
from the committee yesterday a provision which treats transit in a 
similar manner to highways. It was the right decision to go forward 
with some symmetry on transit and highways. Both receive funds from the 
highway trust funds. I applaud Senators Grassley and Baucus for doing 
so.
  I am pleased we are finally working on this bill in the Senate. As I 
said, Senators Inhofe and Jeffords need to be complimented, along with 
Senators Bond and Reid, for the hard work and leadership they have 
shown in getting us to this point. I look forward to moving ahead in a 
bipartisan fashion to do not only what is needed but what is required 
to address our transportation infrastructure deficit.
  If we go forward in that fashion with that goal, we will not only 
improve the condition of our infrastructure but create hundreds of 
thousands of needed jobs and improve the condition of our country, as 
well.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Enzi). The Senator from Oklahoma.
  Mr. INHOFE. Mr. President, I thank the minority leader for the 
excellent statement. We have a new chart on job opportunities which 
talks about the cumulative effect when a job is offered--say a 
construction job on a bridge or highway--and what that does to the rest 
of the economy. It is about 2.8 million jobs as opposed to some of the 
figures we have been using, one-fourth of that number. It is very 
significant.
  The Senator from Ohio gave an excellent statement also. The State of 
Ohio, in terms of new job opportunities, is No. 5 in the Nation under 
this bill. The Senator has done an excellent job. I am sure the people 
of Ohio are very appreciative of the job opportunities that will be 
there as a result of the legislation we hope to pass in the next few 
days.
  The Senator from Ohio, who has vast experience in clean air, was a 
breath of

[[Page 865]]

fresh air when he came in, someone who really has the answers. He was 
the chairman of the Clean Air Committee of the National Association of 
Governors. His expertise is very much appreciated.
  Senator Jeffords and others have already mentioned the difficulties 
in putting together a formula, considering the fast-growing States, 
with a ceiling there. We have some of the small States, such as that of 
the Presiding Officer, in terms of population, which have to be 
considered because even though it is a small population there are a lot 
of roads that have to be cared for. Taking into consideration all of 
these considerations was not easy.
  However, when we compare what we have done with what has been done in 
the past, I am very proud of it. The equity bonus program replaces the 
minimum guarantees.
  Now, I have been criticized for the way I simplify my explanation of 
minimum guarantees, but it is pretty accurate; that is, we took a 
percentage of the total amount of money and gave it to each State until 
we got 60 votes, not caring too much what happened after that. We took 
into consideration all the issues we have been talking about.
  The bill does four things, essentially. It takes care of the donor 
States. I have been part of a donor State for as long as I can 
remember, certainly as long as I have been in the Senate. We were down 
below 80 percent, and as mentioned by the Senator from Ohio, ISTEA, 
then TEA-21, and now with this bill, we are up to 95 percent.
  Streamlining provisions is very important. It is important we have 
money to spend on road construction, but also we can get the maximum 
out of the dollars we do spend. We go a long way to making this a 
reality.
  The third major area is that of safety. We have talked about the 
number of deaths on the highways. It has to be addressed. That is why 
we named this SAFETEA, with many safety provisions, at the same time 
allowing the States to come, recognizing they know more about their 
States than we do in Washington.
  And lastly, the area of freight movement.
  With that, it is my desire throughout the day today when there are 
not speakers to be heard on the highway bill to go through this, 
section by section, and see specifically how these things are handled.
  If any Members who come to the floor want to be heard on the highway 
bill, I will suspend. Of course, we will break in 20 minutes for our 
policy luncheon.
  I start with section 1101, the authorization of appropriations. We 
are talking about $255 billion in contract authority over the next 6 
years. This was difficult to come up with. At the same time, we have 
$56.5 billion contract authority in transit, for a total of $311 
billion, considerably more than the Budget Committee originally came up 
with, considerably more than in the President's budget.
  And we have received, only yesterday, the President's budget message. 
I think, however--and I did talk to the President yesterday--when he 
realizes fully the great work the Finance Committee did--the fact that 
we now have the offsets necessary to do this without increasing the 
deficit--the President is going to be more supportive than he has been 
in the past.
  So this represents an overall increase of 31 percent over TEA-21. The 
link between a robust economy and a strong transportation 
infrastructure is undeniable. The movement of people and goods is one 
of the foremost indicators of a growing economy and job creation.
  The President recommended a funding level of $200 billion for 
reauthorization. Given the critical infrastructure and safety needs of 
the program, we thought it imperative to authorize a higher level of 
funding for the coming 6 years.
  I recall a study that was made--and I do not have the exact figures, 
but the amount of money even that we are suggesting right now merely 
maintains where we are today. It was discussed by the minority leader 
that we have a bridge crisis, and I was wanting to interrupt him to say 
that my State has the distinction of having the largest percentage of 
functionally obsolete bridges. We are hoping to correct that with this 
bill.
  On the other end of the spectrum, the House Transportation and 
Infrastructure Committee has introduced a bill funding highways and 
transit at $375 billion, which is considerably over our $311 billion. 
However, achieving this astronomical figure would require raising gas 
taxes by 13.5 cents per gallon during the next 6 years, in addition to 
utilizing a number of other costly new financing measures.
  The vote before you today recognizes the realities of available 
revenues without the need for increasing gas taxes, and, I might add, 
or increasing the deficit. It is designed to make the most of every 
available dollar to produce better and safer roads by creating 
thousands of new jobs every year and stimulating the national economy.
  In that regard, the Department of Transportation estimates that every 
$1 billion of Federal transportation funds translates into 47,500 jobs. 
By the way, that is not a fictitious number. We have had several 
studies that were done. We realize it is accurate. However, when you 
say new job opportunities, it is about four times that. If someone 
takes a construction job, that person is buying more goods and 
services, and that means manufacturing is going to go up and there are 
going to be many other jobs. So this figure is a very conservative 
figure.
  We estimate that the SAFETEA will increase the size of the job market 
by 700,000 but create over 2 million new employment opportunities. I 
think that is what we need to be talking about.
  Section 1102 is an obligation ceiling. The principle that was used to 
develop obligation limitations was to minimize the gap between the 
OBLIM or obligation limitations in contract authority levels. This 
empowers the States to utilize as much available contract authority as 
possible while still providing them maximum flexibility.
  We were able to achieve a total obligation limitation of $238 
billion. This is what was recommended in the Reid-Bond amendment that 
carried this Chamber with 79 votes. This is consistent with that 
amendment to the budget resolution. So there was a lot of hard work 
from the Finance Committee and the leadership of Chairman Grassley and 
Ranking Member Baucus, and I thank them for the great work they did.
  Section 1103 is the apportionment section. In addition to the overall 
increases experienced by all programs, the bill makes important changes 
to the apportionment of a few specific programs. Under TEA-21, the 
administrative expenses of the Federal Highway Administration were 
funded as a takedown from the various core programs. This bill 
recognizes the separate importance of costs associated with the 
administration of the overall highway program. Therefore, the bill 
funds Federal highway administrative expenses as its own separate 
apportionment protecting the authority of the individual core programs 
or the autonomy of the individual core programs and the administrative 
fund itself.
  Of the amount designated for program administration, the Secretary of 
Transportation is also given the authority to transfer an appropriate 
amount for the administrative expenses of the Appalachian Highway 
Development System.
  As a result of the 2000 census, 46 new metropolitan planning 
organizations or MPOs have been established throughout the country and 
are now eligible for Federal transportation planning funding.
  We have devoted a lot of time and a lot of attention in this bill to 
planning as well as to assisting States in doing what they do best, 
also, which we will get to in a later section. To respond to this 
expanded need, we have increased the program set-aside for MPOs from 1 
percent under ISTEA to 1.5 percent, along with the overall increase in 
program funds which will help to address the growing transportation 
planning needs.
  TEA-21 used a minimum guarantee. I have been talking about this, and 
that really constituted a percentage. And it is just not the way this 
should be done.

[[Page 866]]

We wanted it in our formulas, and we wanted it in an attempt to get our 
donor States up to 90.5 percent. We used a minimum guarantee 
calculation to guarantee that States received back at least 90.5 
percent--that is what they did in TEA-21--90.5 percent of their 
percentage contribution to the highway trust fund.
  The Minimum Guarantee Program was driven by the political 
distribution known as the 1104 table. I will not go into that because 
this is somewhat redundant. We have talked about this in the past. It 
was purely politically driven.
  To contrast that, the new Equity Bonus Program does away with the 
table in TEA-21 which determined each State's percentage share of the 
total highway fund, the political table to which I have been referring. 
Rather than have a State's return be set by a politically driven table, 
the Equity Bonus Program determines each State's return by first 
relying on the program distribution formulas. The equity bonus 
calculation identifies a justifiable nexus in equity between the 
underlying formulas and responsible balanced growth for donor and donee 
States alike.
  If a State fails to reach the minimum return in any year based on the 
formulas, that State would receive an equity bonus award in addition to 
their formula. It should bring them up to the required level. I cannot 
think of a better and more equitable way of doing this.
  While we allow the formulas to work under the new Equity Bonus 
Program, we also recognized that there would be some inequities if we 
allowed the formulas to be the sole factor in distributing dollars to 
the States. In order to increase the minimum rate of return for donor 
States, while ensuring an equitable transition for donee States, rates 
of return are subject to an annual growth ceiling to smooth out the 
phase-in of the increased minimum returns.
  This accomplishes two goals: It keeps the cost of the Equity Bonus 
Program affordable; secondly, it ensures that donee States are still 
able to grow so that there are no States with growth less than 10 
percent in dollars. I repeat that. Of all 50 States, every State gets 
at least an increase of 10 percent.
  Now, I have heard from a lot of the people whose State falls into the 
different categories. One is the category of a fast-growing State, and, 
obviously, they would prefer that the ceilings not be there so they 
would bump into them. But if you do not do that, then you would hear 
equally from some of the older States, such as New York and 
Pennsylvania, that would have to pay the price if we did not have some 
type of a ceiling.
  For donor States, the effect of the growth ceiling is that a State 
with a rate of return above 90.5 percent in 2003 will reach a 95 
percent return sooner than a State that received only a 90.5 percent 
return, or below, in 2003. The closer a State was to 95 percent in 
2003, the sooner it will reach 95 percent.
  Conversely, those States at 90.5 percent in 2003, such as my State of 
Oklahoma, would likely take longer to reach 95 percent. The time it 
takes a State to reach 95 percent depends on how much equity bonus 
funding the State receives and how much faster than the national 
average that State is increasing its contributions to the highway trust 
fund. That is taken into consideration as a part of this formula.
  Recognizing that States with a lower tax basis due to low population, 
such as the State of Wyoming and others, or low income face an added 
challenge of maintaining the transportation infrastructure, the bill 
sets their TEA-21 rate of return as a minimum for future years.
  Section 1105 is the revenue aligned budget authority, or RABA, as we 
have referred to it. The huge 2003 negative adjustment in the revenue 
aligned budget authority made it clear that some changes were needed in 
the RABA calculation in order to provide greater stability and more 
accurate predictions and less fluctuation in coming years. This is 
true. The States can get so much more for their dollars if they can 
predict into the future how they are going to use those dollars and 
what those dollars are going to amount to.
  As I have indicated before, I believe the underlying principle of 
RABA is an important fiscal policy that highway expenditures should be 
tied to highway trust fund revenues.
  The bill modifies the RABA calculations so that annual funding level 
adjustments are less dependent on future anticipated receipts and more 
dependent upon actual receipts to the highway trust fund. If the RABA 
adjustment in any fiscal year is negative, the amount of contract 
authority apportioned to the State for that year will be reduced by an 
amount equal to the negative RABA. However, if the balance of the 
highway trust fund is greater than $6 billion, then there will be no 
negative RABA adjustments.
  Section 1201 is the infrastructure performance and maintenance 
program, or IPAM. There is a lot of interest in this program, 
obviously. The IPAM program is intended for ready-to-go projects that 
States can undertake and complete within a relatively short timeframe. 
As a result, States are given 6 months to obligate IPAM funds. We 
designed this discretionary program to promote projects that resulted 
in immediate benefits for the highway system's condition and 
performance while avoiding long-term commitments of funds. The program 
also provides further economic stimulus to the economy and provides a 
way to aid in spending down balances in the highway trust fund.
  That is very important right now. We are very sensitive to the 
somewhat job crisis. We have seen our economy on its way up again. 
However, there is a lag between economic recovery and the jobs. IPAM is 
going to give more construction sooner, provide more jobs and more jobs 
sooner. Then, of course, when you put the new job opportunities factor 
to that, that is going to be very meaningful to job recovery in 
America.
  The States may obligate funds for projects eligible under Interstate 
Maintenance, National Highway System, Surface Transportation System, 
Highway Safety Improvements Program, Congestion Mitigation and Air 
Quality Improvement, or CMAC, and the Highway Bridge Program. Eligible 
projects under IPAM include the preservation, maintenance, or 
improvement of existing highway infrastructure and operational 
improvements to address recurring highway congestion.
  Section 1202 is the future of the surface transportation system 
title. In order to be prepared for future reauthorizations of this 
legislation, we require the Secretary of Transportation to perform a 
long-term investigation into the surface transportation infrastructure 
needs of the Nation.
  Specifically, the bill directs the Secretary to look at: the current 
condition and performance of the interstate system; the future of the 
interstate system in 15 years or 30 years or 50 years; expected 
demographics and business uses that impact the surface transportation 
system; the effect of changing vehicle types, modes of transportation, 
traffic volumes, and fleet size and weights--we have seen such a 
dramatic change in the types of vehicles that we drive that we never 
could have anticipated back when we were putting together ISTEA or one 
of the previous programs--possible design changes; rural, urban, 
interregional, and national needs; improvements in emergency 
preparedness; real-time performance data collection; and future funding 
needs and potential approaches to collect those funds.
  What we are saying is, we are trying to prepare for the future. It is 
important what we do for the next 6 years, as we go through this 
reauthorization. I think we have done a good job with that. But things 
will happen 6 years from now that we cannot anticipate. That is what 
the Secretary of Transportation will be looking at and coming back 
with, so we will be able to anticipate some of the things we will be 
looking at 6 years from now.
  A very important section is 1203. That is the freight transportation 
gateways, freight intermodal connections. Freight movement in America 
is expected to grow dramatically in volume and value over the coming 
decades.

[[Page 867]]

Throughout the reauthorization hearings, the Environment and Public 
Works Committee heard concerns about inadequate freight facilities, 
insufficient capacity, and insufficient connections.
  The GAO recently released a report, dated October 2003, a little over 
a month ago, regarding freight transportation, recommending strategies 
needed to address planning and financing limitations. The report noted 
that the major challenges to freight mobility all shared a common 
theme--congestion, including overcrowded highways, freight specific 
check points.
  Additionally, the GAO reported two main limitations that stakeholders 
encounter in addressing these challenges. The first related to the 
limited visibility that freight projects receive in the planning and 
prioritization process. S. 1072 directly addresses this problem by 
creating a freight transportation coordinator at the State level to 
facilitate public and private collaboration in developing solutions to 
freight transportation and freight gateway problems. This is one more 
area where we will have an increased emphasis on States.
  The bill also ensures that intermodal freight transportation needs 
are integrated into project development and planning processes. The 
second limitation that the GAO found was inhibiting stakeholders was 
that Federal funding programs tend to dedicate funds to a single mode 
of transportation or nonfreight purpose, thus limiting freight project 
eligibility among some programs. S. 1072 deals with this problem as 
well as making intermodal projects eligible for STP and NHS funding.
  The Freight Gateways program found in this bill promotes intermodal 
improvements for freight movement through significant trade gateways, 
ports and hubs, and intermodal connections to the national highway 
system. States and localities are encouraged to adopt new financing 
strategies to leverage State, local, and private investments in freight 
transportation gateways, thus maximizing the impact of each Federal 
dollar.
  The Freight Gateways program is funded from a set-aside of 2 percent 
of each State's NHS apportionment. However, in the spirit of State 
flexibility and ensuring that funds go to the areas of greatest need, a 
State is not required to spend the 2 percent of their NHS apportionment 
if they can certify to the Secretary that their intermodal connections 
are adequate. I think this is a recognition that the States do know 
more about their needs than the Federal Government. That is one of the 
trends of this.
  I know we are ready to recess. I yield to my colleague Senator 
Jeffords for the remainder of the time.
  Mr. JEFFORDS. I will take very little time. I commend the chairman 
again and all the staffs, his and mine, for the incredible amount of 
work they have put into this effort.
  Mr. INHOFE. They are even talking to each other now.
  Mr. JEFFORDS. Yes, right. It is fantastic. We know also that we have 
a long way to go. The work you have done and my staff has done, all of 
us, has placed us in a great position to start. But now it is the 
opportunity for all the Members to check carefully to see how their 
States are doing and maybe make some improvements. We know we will have 
a number of amendments. We have a long way to go, but I think we are 
off to a great start. I expect we will have a great finish.
  Mr. INHOFE. I would agree with those comments. However, I think we 
have the basic formula, and this is something for which I am going to 
be fighting because once you break into this and change the formula, 
that is going to change every State. That is something we have spent 
over a year now working out to get as much equity as possible. We look 
forward to the input from Members who are not on the committee.
  Mr. JEFFORDS. They should all have the opportunity, and I know we 
will provide it. I think we have done a great job, so there should not 
be too much problem.
  Mr. INHOFE. Mr. President, 12:30 has arrived and we are planning to 
break.

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